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CC - Item 5B - Revised Exhibit A 3rd Amendment to Consolidated Disposal Services Contract• MAYOR: JAY T. IMPERIAL MAYOR PRO TEM GARY A. TAYLOR COUNCILMEMBERS: MARGARET CLARK JOHN H. NIJ&EZ JOHN TRAN TO: FROM DATE 0 oscmead 8838 E. VALLEY BOULEVARD • P.O. BOX 399 ROSEMEAD, CALIFORNIA 91770 TELEPHONE (626) 569-2100 FAX (626) 307-9218 HONORABLE MAYOR AND MEMBERS ROSE EAD CITY COUNCIL BILL CROWS, CITY MANAGER SEPTEMBER 26, 2005 RE: REVISED EXHIBIT A FOR SEPTEMBER 27, 2005, COUNCIL AGENDA ITEM V-B, THIRD AMENDMENT TO CONSOLIDATED DISPOSAL SERVICES CONTRACT Attached is a revised Exhibit A which is a 2005-06 Rate Schedule and an e-mail from Consolidated Disposal Services explaining that the rate charts originally supplied for the third amendment staff report, did not exclude non-curbside residential which they should have. The revised Exhibit A has the changes hi-lighted in yellow. Tjern No.: 56 • 4 DONALD WAGNER From: Walker, Bob [WalkerB@repsrv.com] Sent: Monday, September 26, 2005 9:47 AM To: dwagner@cityofrosemead.org Cc: Fierro, Richard Subject: RE: Revised rate sheets Attachments: Rosemead Rate sheet at 9 26 05.xls 1-1 Rosemead Rate sheet at 9 26 05... Hello Don, Richard and 1 were able to review the reports that I sent you last week and discovered that there were three rates (highlighted in Yellow) that had the Automation increase applied to them but should not have. These rates are Residential but not curbside and all are decreases from originals. The formulas in my calculation sheet did not exclude non-curbside items from the increase (as they should have). Please accept the attached as support for the agenda. I apologize for any inconvenience. <<Rosemead Rate sheet at 9 26 05.xls>> > -----Original Message----- > From: Walker, Bob > Sent: Thursday, September 22, 2005 6:10 PM > To: 'dwagner@cityofrosemead.org' > Subject: RE: Revised rate sheets > << File: Rosemead Rate sheet at 9 22 05.xls -----Original Message----- From: Walker, Bob Sent: Thursday, September 22, 2005 5:09 PM To: 'dwagner@cityofrosemead.org' Cc: Fierro, Richard Subject: Revised rate sheets Please find attached both rate sheets as requested. << File: Rosemead Rate sheet at 9 22 05.xls Bob Walker Division Controller Phone (562) 663-3440 Fax (562) 531-4710 1 • EXHIBIT A City of Rosemead Rates 2005 - 2006 Residential Rates: Category Current Rate New Rate Single Family Dwelling - Residential Curbside (one 100 Gal Cart) $ 12.44 $ 14.66 Multiple Family Dwelling-Detached Units On A Single Lot: First Unit $ 12.44 $ 14.66 Each Additional Unit $ 10.05 $ 11.84 Multiple Family Units - Attached Units ( Apartments and Condos And Mobilhome Parks: First Unit $ 12.44 $ 14.66 Each Additional Unit $ 8.18 $ 9.64 Special Qualified Senior Citizen Hardship Rate / For Residential Curbside Service $ 8.28 $ 9.75 Special Qualified Handicapped Citizen / Backyard Collection Rates For Single Family Residences: $ 12.44 $ 14.66 Additional 100 Gallon Cart $ 2.14 $ 2.14 Special One-Time Pick-Up Cost For Pick-Up And Disposal Of Appliances, Furniture And Bulk Items $ 15.89 $ 15.89 Residential - Special One-Time Drop-Off And Collection of A 3-Cubic Yard Bin Pick U / Delivery Charge $ 54.98 S 54.98 Each Dump $ 22.18 S 22.18 Total $ 77.16 S 77.16 Residential - Special One-Time Drop-Off And Collection of A 10 to 40 Cubic Yard "Roll-Off' Container $ 430.19 $ 430.19 Overweight 7 Ton Limit $ 52.66 $ 52.66 Dail Rental After Seven Days Without A Dump $ 15.00 S 15.00 Dead Run $ 75.00 $ 75.00 Commercial Rates 3 Cubic Yard Bins CURRENT RATE Without Forklift Forklift 1 Da P/U 100.27 110.29 2 Da P/U 152.20 167.38 3 Da P/U 206.48 227.11 4 Da P/U 261.16 287.26 5 Da P/U 322.65 354.92 6 Da P/U 369.59 406.58 NEW RATE Without Forklift Forklift 1 Da P/U 100.27 110.29 2 Da P/U 152.20 167.38 3 Da P/U 206.48 227.11 4 Da P/U 261.16 287.26 5 Da P/U 322.65 354.92 6 Da P/U 369.59 406.58 1 1/2 Cubic Yard Bins CURRENT RATE Without Forklift Forklift NEW RATE Without Forklift Forklift • 1 Da P/U 68.39 74.22 0 1 Da P/U 68.39 74.22 Category Current Rate New Rate Commercial - One-Time Drop-Off And Collection Of A 3-Cubic Yard Bin Pick U / Delivery Charge $ 67.30 $ 67.30 Each Dump $ 35.13 $ 35.13 Total $ 102.43 $ 102.43 Commercial - Special One-Time Drop-Off And Collection of A 10 to 40 Cubic Yard "Roll-Off' Container $ 392.35 $ 392.35 Overweight 7 Ton Limit $ 50.12 $ 50.12 Dail Rental After Seven Da Without A Dump $ 15.00 $ 15.00 Dead Run $ 75.00 $ 75.00 Commercial - Special One-Time Drop-Off And Collection Of A 30 Cubic Yard Compactor Container $ 519.72 $ 519.72 Overweight 9 Ton Limit $ 50.12 S 50.12 Dail Rental After Seven Days Without A Dump $ 15.00 S 15.00 Dead Run $ 75.00 S 75.00 Commercial - Special Barrel Service for Qualified Commercial, Limited Use Customers. Max 2-35 gallon cans 1 time er week $ 68.27 S 68.27 Rate Change Calculation Landfill Dump Fees Puente Landfill South Gate Trans Commerce PH Greenwaste Puente Landfill South Gate Trans Commerce PH Greenwaste Weight Effective Rate 0.0% - 77.6% 25.58 22.4% 8.75 0.0% - 100% 34.33 Old $ 20.88 $ 32.98 $ 39.00 $ 11.00 New $ 22.65 $ 34.77 $ 42.00 $ 12.10 * Per YTD 2005 Tonnage CPI Jun-04 200.7 Weight" Effective Rate 0.0% - 55.0% 19.11 45.0% 18.92 0.0% - 100% 38.03 Adjusted for Commerce Burner activity %change May-05 200.7 0.0% Total 0.0% Residential Old New %change Change in Effective Rate 31.43 $ 31.43 0.0% • Commercial Rate Consumer Price Index Disposal Tipping Fee = Rate proposed re Residential Rate Weighted CPI Value Increase Increase to cover a-waste change Increase to cover automation of Recyc program Consumer Price Index 0.7 X 0.0% Disposal Tipping Fee 0.3 X 0.0% Increase in Residential Rates Commercial Old New %change Change in Effective Rate 36.40 36.40 0.0% Weighted CPI Value Increase 0 X 0.0% 0.3 X 0.0% Increase in Commercial Rates quires cancellation of 25% recycling rebate tc n LJ Adjustment Percentage 0.8% 17.0% 0.0% 0.0% 17.8% Adjustment Percentage 0.0% 0.0% 0.0% City of Rosemead (or beneficiary) • • TO: HONORABLE MAYOR AND MEMBERS ROSEMEAD CITY COUNCIL FROM: XAlJoE CROWE, CITY MANAGER DATE: SEPTEMBER 22, 2005 RE: CONSIDERATION OF THIRD AMENDMENT TO CONSOLIDATED DISPOSAL SERVICES (CDS) CONTRACT TO INCLUDE AUTOMATED RECYCLING AND YEAR ROUND BULKY ITEM PICKUP In order to assist the City in meeting the 50% diversion goal set by AB 939, and to improve community appearance through more frequent bulky item pickups, staff requested that CDS provide the Council with options to modify the existing recycling and bulky item programs. Attached to the solid waste consultant's report is a chart outlining 5 options. Our solid waste consultant has reviewed the options and is recommending option 2 which includes changing the current manual recycling program to an automated system using a 64 gallon blue bin. It would also include changing the quarterly bulky item pickups to an all year round pickup on the regularly scheduled trash pickup day. Each household would have four (4) pickups per year with five (5) items per pickup. Electronic waste (E- Waste) would be included as part of the bulky item pickup. The cost of picking up the "abandoned bulky items" would be covered by CDS up to an annual cost of $1,000. Anything over that amount would be billed to the City. Option 2 would cost each household an additional $2.22 per month for a total of $14.66. CDS has requested the deletion of its requirement to share 25% of net revenue from the sale of recyclables with community non-profit groups. This currently amounts to $9,566.87 for fiscal year 2004-05, but should be expected to grow in future years with the utilization of the larger, automated recycling bins. S E P 2 7 2005 ITEM 10- -9.----- The Council has the option of reducing the proposed increase by extending the contract from a five year evergreen to either seven years ($1.93) or ten years ($1.72). Neither staff nor the consultant is recommending extending the contract. Attached are copies of the CDS letter summarizing their proposal, the CDS contract with amendment 3, an analysis of the request from our solid waste consultant, and a chart describing the five options. RECOMMENDATION It is recommended that the City Council approve the third amendment which includes the additional services described in option 2, which provides for an automated recycling program and a year round bulky item and a-waste collection and deletes the requirement that CDS share recycling revenue with community non-profit groups. A public hearing will be scheduled in the future to confirm the rates approved as part of the third amendment. • • CONSOLIDATED DISPOSAL SERVICE A Subeldlary of * REPUBLIC BFAVIC68, INC. September 21, 2005 Mr. Bill Crowe 2465 E. 68th suvet City Manager City of Rosemead Long Basch, CA BOWS 8838 East Valley Blvd. Rosemead, CA 91770 Pacslmlle (882a 591 4710 Mr. Crowe, to help the City reach its 500/diversion goal set by AB 939. We would like to propose the following programs that in our estimate will Ave the City the necessary diversion credits: Fully Automate the City's Curbside Program. This will inolude changing out the 18 rmilog blue recycling tub and them at green Rte can with a b4 ■Ilo blue Co-Mingle Automated Container and a 4 allo green waste Automated Container. With the addition of these two Automated Recycling Containers the City can exparlenee an increase in Its Curbside Collection by 4 to 6 The cast to implement this program on our ourrent S-ve■r contract will be $2.12 per month for the Recycling Containers and $1.20 per month for the Green Waste Containers. With a now 7-ves{r contract cost to implement program would be $1.83 per month for a 64 gallon blue Automated Recycling Container and 5.90 per month for the 64 gallon green Automated Container. A 10- je■r cogtrset will reduce the cost to the blue Recyel'tng Container to $1.62 per month and 5.75 per month for the green automated Container. Bnlbv item Collection We would also propose to change the method In which we pick - up Bulky Items. Instead of having balky items picked-up each quarter we propose to pick-up bulky Items on the residents' collection day. &ample: If the collection day is on Monday, along with the Automated Containers, residents would also put out their bulky item ■t no dditianaleast. Each resident would be allowed to put out up to five bulky items each week four times a year. With this program, each resident will now have the opportunity to dispose of 20 bulky items per year at no odilitiouelcos2. Also, Consolidated will pick-up all abandoned bulky items and e- waste called into to CDS by a resident or City Code Enforcement within 24 hours of the call at a oust of S.62 per resident per month. &WASTE As you know, electric waste (e-waste) has been classified as hazardous waste. We can no longer pick-up TV's, computers and monitors or any other item that has MERCURY with out bulky item vehicle. Alm all o-waste trust now be taken to a State Registered E-Waste Facility. Rosemead residents have two choices on how to dispose of e-waste, the County of Los Angeles has a Hazardous Waste and E-Waste Round Up weekly somewhere in the County where residents can dispose of their a-waste at no charge or Consolidated will pick-up the o-waste at ourbside with a non- compacted vehicle and have the a-waste properly disposed for a oust of 5.10 per household per month, What this means to the residents of Rosemead Is when a resident has e•waste they wish to dispose, they will call CDS 24 hours prior to their collection day set the e-waste at curbside next to their Automated Containers and Consolidated will pick up the co-waste and have it properly disposed. Mr. Crowe, as per our current contract with the City of Rosemead, we are to donate a minimum of 25% of the net proceeds from the sale of recyclable materials collected in the City (Sec. T. 3) to a non-profit group in the City. Consolidated has over the years pest this donation on to the City direct t hrr the City has past It on to a worthy non- . . - , O..-,;..« A..,... fha rv tr & ftfr it ham Should you have any questions regarding the proposed new programs or any other matter, please do not hesitate to contact me at (562) 663-3453. Sincerely, Richard Fierro Director of Community A$l;im 0 PKWTEO ON ROMQU O MIDI 4l q1 • • EXCLUSIVE REFUSE COLLECTION AND RECYCLING FRANCHISE AGREEMENT THIS AGREEMENT is made and entered into effective, the 1st day of August, 1991, by and between the CITY OF ROSEMEAD, a municipal corporation, hereinafter referred to as City, and CONSOLIDATED DISPOSAL SERVICE, Inc., hereinafter designated as Contractor. The City and Contractor agree each with the other that, for a period of five (5) years from after the 1st day of August, 1991, the Contractor shall have sole right to collect, haul and dispose of all refuse and conduct a comprehensive recycling program in the City of Rosemead in accordance with the following terms and conditions: A. DEFINITIONS 1. City shall mean the City of Rosemead, California. 2. City Attorney shall mean the Rosemead City Attorney. 3. City Clerk shall mean the Rosemead City Clerk or her authorized designee. 4. City Council shall mean the Rosemead City Council. 5. City Manager shall mean the Rosemead City Manager or his authorized designee. 6. Contractor shall mean Consolidated Disposal Service, Inc. 7. Handicapped shall identify a person who satisfies the Department of Motor Vehicles requirements for the issuance of a handicapped parking permit. 8. H.D.P.E. plastic shall mean high density polyethylene such as milk jugs, liquid detergent and motor oil bottles. 9. P.E.T. plastic shall mean poly-ethylene terephtalate such as plastic soft drink bottles. 10. Recyclable material means any one or niore of the following categories of materials collected and recycled from within the City: A. Newspapers; B. Aluminum cans; 0 C. Glass; D. P.E.T. and H.D.P.E. plastic containers; and 0 E. Such other materials, as, from time to time, as may be commercially reasonable to collect and reuse. 11. Refuse shall mean "garbage" and "combustible and non-combustible rubbish", "miscellaneous debris" and "combined rubbish" as those terms are defined in Chapter IV, Article V of the Rosemead Municipal Code. 12. Resident shall mean the owner, occupant, tenant or manager of private residential property or other use of private residential property. 13. Senior Citizen shall mean a customer who is at least 62 years old. 14. Tipping charges shall mean the per ton charges, including any surcharges, imposed by the Los Angeles County Sanitation District, for dumping waste. B. WORK TO BE DONE The work to be done under this Agreement shall include the furnishing of all labor, material, equipment and expenses necessary to perform the following minimum services: 1. Collection, hauling and disposal of refuse from the premises of any and all residents and businesses in the City, at the regularly scheduled intervals, and at the rates as provided herein. Said work shall include regularly scheduled pick-up of refuse once a week from curb or alley. Contractor shall also provide regularly scheduled and one-time special container (bin) service to any residence requesting such service. 2. Collection from City facilities as follows: (a) City Hall - Contractor shall, at no charge, furnish sufficient bins and shall pickup and remove the contents of said bins on a schedule approved by the City Manager. 2 0 0 (b) Parks and Recreation Department - At the Community Center, Zapopan Park, Garvey Park, Rosemead Park and the City Maintenance Yard, Contractor shall, at no charge, furnish sufficient bins and shall pickup and remove the contents of said bins on a schedule approved by the City Manager. (c) City Litter/Trash Receptacles - City owns approximately 32 litter and trash barrels, located on the sidewalk at fixed locations on major streets. A listing of these trash receptacles was provided on Exhibit "E" to the request for proposals, which is incorporated herein by this reference. Contractor shall empty and remove the contents of said receptacles throughout the City not less than three (3) times per week on a schedule approved by the City Manager. Contractor shall replace the barrel liners at no cost to City. Contractor agrees to pick up, on these terms and conditions, any additional litter and trash barrels acquired by the City up to a maximum of 18 additional barrels (a total of 50), during the term of this Agreement. 3. The Contractor shall not be required to remove waste building materials and other waste materials from the construction, alteration, repair, and moving or demolition of buildings. However, owners and tenants of residential premises may put out waste materials for collection by the Contractor if the alteration of repair work is performed individually by the owner or tenant. 4. Unless otherwise directed by the City, the Contractor shall dispose of all collections at a site located outside of the City limits. All work required of the Contractor shall be done in a thorough and workerlike manner to the satisfaction of the City. C. LOCATION OF COLLECTIONS Collection of residential refuse will be made either at curbside or backyard (in the case of qualified handicapped residents). D. COLLECTION HOURS AND DAYS Unless the City Council determines otherwise, the collection of residential refuse in the City shall be confined to Monday through Friday between the hours of 6:00 a.m. and 4:00 p.m. Collection may be made on Saturday if a holiday occurs within the preceding six (6) days. Collection of commercial accounts on Saturdays shall be scheduled so as to not disturb residential neighborhoods. 2. If, in the judgment of the City Manager, conditions warrant a temporary departure from the regular days and hours of collection, the City Manager may authorize collection of refuse on such days and during such hours as he deems appropriate. Any permanent changes to the collection schedule must be approved by the City Council. 3. To the extent reasonably possible, collections on each route shall commence at the same point, at the same time and follow the same route each time collections are made. 4. The Contractor shall provide sufficient workers and equipment to complete within one day the collection of all refuse placed for collection in any mutually agreed upon collection district within the City on the given collection day. E. COLLECTION SCHEDULE 1. The schedule of collections shall be subject to the approval of the City Manager. The Contractor shall prepare and file with the City Manager a collection schedule, together with a complete map of the refuse collection districts within the City. He shall indicate thereon in an appropriate and easily understandable manner the days on which collections shall be made. 2. The collection schedule, when approved by the City Manager, shall be maintained unless a change therein is first approved, in writing, by the City Manager. 3. Prior to the start of any new collection schedule, as approved by the City, the Contractor shall, at his own expense, by written notice with postage prepaid and forwarded through the United States mail or by personal service, notify each customer of the day or days of the week on which refuse shall be collected. The notice shall contain the day or days of the week upon which collections will be made, the name, address and telephone number of the Contractor, and other information deemed necessary by the City Manager. Said notice shall be posted in the mail or by personal service to customer served not less than fourteen (14) days prior to the change of collection schedule. The Contractor shall also cause a schedule of collections to be published twice in a newspaper of local circulation once each week for two successive weeks immediately prior to the change in the collection schedule in a district. The published schedule shall contain the same information as the written notice outlined above, and shall clearly indicate the precise area involved in the change. 4. For any given roadway, collections on both sides of the roadway shall be made on the same day. 4 0 0 F. COLLECTION RATES AND BILLING 1. The City and Contractor, as part of this agreement, fix and determine uniform rates that shall be charged by the Contractor for the collection and removal of refuse. The rates thus fixed and determined shall remain in effect for the period prescribed or until changed pursuant to the provisions hereof. The Contractor shall not charge or collect any fees or rates other than the fees or rates thus fixed and determined. 2. The City Council shall, not more frequently than once per year, authorize a rate adjustment by application of the following formula and procedure to the then current rates: Contractor shall be entitled to no rate increases whatsoever until the first anniversary of the franchise (August 1, 1992). Effective August 1, 1992 and on subsequent anniversary dates during the term hereof, Contractor shall be entitled to a rate adjustment based upon the following formula: .75 x increase in Consumer Price Index, All items, 1982-84 = 100 (Los Angeles-Anaheim-Riverside) from the base month (commencing June, 1991) to the following year's comparison month (June, 1992; June, 1993; June, 1994; and June, 1995) plus .25 x the percentage change in tipping fees to arrive at the percentage adjustment to be applied to all rates herein authorized, PROVIDED HOWEVER that Contractor and City agree that any increase authorized by he application of this formula shall be limited to no more than a total of five percent 5%) for the scheduled rate adjustments effective August 1, 1992 and August 1, 1993. Allowable adjustments, based upon tipping fees, shall be based upon the rates at the Los Angeles County Puente Hills landfill as established by the Los Angeles County Sanitation District. Example: FACTOR % CHANGE PERCENT OF TOTALS OVERALL COSTS CPI 4.70% X .75 3.525 Tipping fees 10.00% X .25 2.500 Adjustment percentage 6.525 5 0 0 Thus, the otherwise allowable adjustment percentage of 6.525% is limited by the overall cap of five percent (5%). Contractor and City further agree that any allowable rate adjustments in the fourth and fifth years of the franchise shall be based upon the rates effective August 1, 1993 and August 1, 1994 respectively. Contractor shall not be entitled to any increases to make up for otherwise allowable increases in the first three years that were limited by the five percent (5%) cap. 3. The Contractor shall not make or grant any preference or advantage to any person, nor subject any person to prejudice or disadvantage with respect to rates, fees, charges, service, facilities, rules, regulations, or any other respect. Contractor is specifically authorized to charge a Senior Citizen Hardship rate and a Handicapped rate for those accounts who meet the following eligibility criteria: A. SENIOR CITIZEN HARDSHIP RATE - Those customers, aged 62 and over, who meet the following income limitations, shall be entitled to the Senior Citizen Hardship Rate as listed in this Agreement: Single Income not to exceed $985 per month Family (2 or more) Income not to exceed $1,971 per month Contractor is authorized to require proof of age and an affidavit of eligibility signed by the customer. The "not to exceed" income levels listed above shall be increased to reflect cost of living adjustments on August 1 each year of the franchise. B. HANDICAPPED RATE - Those customers, who meet the eligibility requirements of the Department of Motor Vehicles for issuance of a handicapped parking permit, shall be entitled to backyard service, at the regular residential rate. If the handicapped individual also qualifies for the Senior Citizen Hardship Rate, he or she shall be entitled to backyard service at the Senior Citizen Hardship Rate as listed in this Agreement. 6 0 0 4. Except as otherwise provided herein, Contractor will bill each customer directly for service and will collect from such customer for same. City shall not be responsible for collection or payment for such services. 5. Contractor may not suspend its collection and disposal services hereunder to a customer who has failed to pay a proper billing for services. Contractor shall make all reasonable efforts to diligently pursue and collect all fees and charges due Contractor for rendering such services. In the event of a delinquency, the Contractor shall also notify the owner of the real property of the amount of the delinquency and the possibility of property tax lien collection. Contractor shall provide to City, not more frequently than quarterly, individual letters, postage prepaid, which contain the names of the property owner and occupant (if different from the owner), the address of the owner as shown on the latest updated assessment roll, including the assessor's parcel number and whatever other information is required by the Los Angeles County Tax Collector. Said letters shall state the amount of delinquency, penalties, late charge(s) and collection costs. City shall allow Contractor to use the update assessment roll records available at City Hall. City allows such use as an accommodation only and does not warrant the accuracy of such records. The only responsibility of the City pertaining to notice of and public hearing shall be as follows: The City Manager or his designee shall notify property owners by sending the letter designated in the paragraph next above. Such notice shall further declare that the City Council shall at a regular meeting, review and approve as an assessment against the property the amount delinquent and unpaid, the amount of the penalty and late charge(s), collection costs, including administrative costs incurred. If the total assessment determined and approved by the City Council is not paid within ten (10) days after such determination, then and in that event, there shall be recorded in the Office of the County Recorder a statement of the total balance due together with the legal description of the property affected. From and after the date of such recordation, the balance due shall be a special assessment against the real property. The assessment shall be collected at the same time and in the same manner as are county property taxes and shall be subject to the same penalties and to the same procedure and sale in cases of delinquency as provided for other taxes and assessments appearing on the county property tax bill. All laws applicable to the levy, collection and enforcement of county taxes shall be applicable to such special assessment. Contractor shall be paid the amount actually recovered by the City on an unpaid account less 10% (ten per cent). Said payment to Contractor shall be made within thirty (30) days of the City's receipt of funds. 7 • • 6. The Contractor shall obtain the written approval of the City Manager as to the billing periods used. 7. Each bill shall contain the name, address, telephone number and office hours of the Contractor, the amount and period being billed, a statement that the Contractor will provide, upon request, a complete list of the rates for the various types of services provided by the contractor, a statement indicating how to file a complaint and how complaints are resolved, as well as the possibilities of recourse available to customers, the holiday schedule, and any other information necessary to assist residents as determined by the City Manager. At least 30 days prior to any rate change, the Contractor shall mail all customers notice of said rate change. G. OFFICE. INQUIRIES AND COMPLAINTS The Contractor shall maintain telephone listings in the directories of the telephone companies servicing the City in the name by which the firm is most commonly known. 2. The Contractor shall have at all times during the hours between 6:00 a.m. and 5:00 p.m., Monday through Friday, an employee at the Contractor's office to answer inquiries and to receive complaints. 3. The Contractor shall maintain a written record of all complaints received, including the name and address of the customer, a description of the complaints, the time the complaint was received, the action taken in response to the complaint, and the time the responsive action was taken. The record shall be kept at the Contractor's office, and shall be available for inspection or duplication at all reasonable times by the City Manager or his designee. 4. In the event that any customer reports to the City Manager that a complaint or claim for a damaged container has not been resolved to the customer's satisfaction, the City Manager may require the Contractor to present a detailed report outlining the nature of the complaint and remedies proposed or action taken to resolve said complaint or claim. If it is the opinion of the City Manager that the Contractor's remedies proposed and action taken are insufficient to adequately resolve the said complainant claim, the City Manager may require the Contractor to carry out an alternative remedy process intended to resolve the complaint or claim, Said remedies will be carried out at no cost whatsoever to the City, unless otherwise specified by the City Manager. 5. The Contractor shall maintain a location, within the City of Rosemead, where bills may be paid and service changes may be initiated. 8 0 0 H. VEHICLES AND EQUIPMENT All trucks and other equipment used to collect, haul or dispose of refuse shall at all times be kept clean, in good repair, and well and uniformly painted, to the satisfaction of the City Manager. Contractor shall utilize the equipment specified in its proposal unless the City Manager approves in advance and in writing, equipment substitutions. 2. Each truck shall be constructed, used and maintained so that refuse, oil or grease will not blow, fall or leak out of the truck onto the street. All refuse shall be transported by means of vehicles equipped with water-tight bodies fitted with close fitting metal covers. Should any refuse be dropped or spilled in collecting, transferring or transporting, it shall be immediately cleaned up. A broom and a shovel shall be carried on each truck at all times for this purpose. Contractor shall be notified of and given a reasonable opportunity to cleanup any such spills before the City incurs expenses for such cleanup. All expenses incurred by the City in the collection and disposal of any such spilled or dropped refuse shall be paid to the City, on demand, by the Contractor. 3. All refuse-conveying truck or trailer bodies shall be cleaned thoroughly by flushing with water after each day's use. The Contractor's name and telephone number shall be painted on each side of the body of each truck. The letters shall be in a color contrasting sharply with color of the truck, and shall not be less that six (6) inches in height and four (4) inches in width. The brake system of each vehicle used for collecting, hauling or disposing of refuse in the City shall be inspected and certified twice each year by the California Highway Patrol or by a brake inspection station licensed by the California Highway Patrol. Notice of such certification shall be filed with the City Manager each August and February. Failure to submit required notice of such certification may be grounds for terminating this Agreement per the procedure outlined in Paragraph P - Termination. 6. Each vehicle of three (3) or more axles used for collecting hauling or disposing of refuse in the City shall be maintained in conformance with the Motor Carrier Safety Regulations set forth in Title 13 of the California Administrative Code (Motor Vehicles). 7. The City Manager may cause any vehicle used for collecting, hauling or disposing of refuse in the City to be inspected and tested at any time and in such manner as may be appropriate to determine that such vehicle is being maintained in compliance with the provisions of the Rosemead Municipal Code and the 0 • California Vehicle Code. 8. The City Manager may authorize the removal of any vehicle from service if said vehicle is found to be in non-conformance with the Rosemead Municipal Code or the California Vehicle Code. Vehicles shall not be returned to service until duly authorized by the City Manager. 9. Each vehicle used for collecting, hauling or disposing of refuse shall be equipped with an audible warning device that is activated when the vehicle is backing up. 10. No vehicle used for collecting, hauling or disposing of refuse shall be loaded in excess of the manufacturer's gross vehicle weight rating or in excess of the maximum weight specified by the California Vehicle Code, whichever is less. Evidence of the manufacturer's name and gross vehicle weight rating shall be maintained in, or upon, every vehicle. I. REFUSE CONTAINERS 1. All refuse containers shall be replaced, upright, with the lids immediately beside the containers. Containers and lids shall not be placed or thrown on the streets, alleys, highways, or on adjoining property. 2. The Contractor, his agents and/or employees, shall not throw refuse containers from the truck to the pavement or parkway, shall not cause damage by striking them against the truck to dislodge contents, or in any other way break or damage or roughly handle the same. 3. All claims for damage of containers, by reason of the misuse or rough handling of said containers by the Contractor, shall be presented to the Contractor by the resident. The Contractor shall make a decision concerning settlement within 48 hours of receipt of such claims. 4. Any refuse container which will no longer hold refuse without spilling, which leaks or is not water tight shall be replaced by the person from whom refuse is collected, within ten (10) days after notice from the Contractor stating the condition of such container. Such notice shall be made by attaching a tag to such container and indicating thereon the defective condition thereof. 5. The Contractor shall collect and dispose of all cardboard boxes used for the collection of refuse. 6. The Contractor shall provide large capacity containers (bins) for mechanical loading wherever customers so request their use, and the use thereof shall be in accordance with the rates established herein. Each container provided shall have 10 0 0 the Contractor's name, or company name, placed and maintained on one or more locations on the outside in letters not less than three (3) inches in height. The Contractor shall regularly inspect all large capacity containers, repair or replace any damaged containers, and maintain an inventory need to meet the demand of customers. All such containers shall be maintained by Contractor so as not to leak. All such containers utilized in Rosemead shall feature tight-sealing lids (the Balanced Lid Systems (or equivalent) bins specified in Exhibit D to the Contractor's proposal) 7. Residents electing to use large capacity containers for mechanical loading shall use such containers exclusively and shall place such container for pickup where they are readily accessible to the Contractor's equipment. 8. The Contractor shall provide sufficient workers and equipment so as to limit the time that the bins are placed in the public right-of-way to a maximum of three (3) hours. STATUS OF REFUSE All refuse collected pursuant to this Agreement shall be deemed to be the property of the Contractor, as of the time the same is received by it, unless otherwise directed by the City Council of City, in its sole discretion. In the event the City's directions regarding disposal transfer or processing increases Contractor's costs, Contractor shall be entitled to a rate increase to recoup these costs. City shall be authorized to require complete financial data, which demonstrate conclusively the additional costs, before approving such a rate increase. K. CONTRACTOR'S NAME The Contractor shall not use the words "Rosemead", "City", "Municipal", "Community" or other like words in his corporate name or on his equipment. L. PERFORMANCE BOND 1. Upon being awarded approval for the collection, removal and disposal of refuse in the City, the Contractor shall file with the City Clerk and shall thereafter during the entire term of the Agreement maintain in full force and effect a corporate surety bond or other adequate surety agreement in a form satisfactory to the City Attorney in the amount of Three Hundred Thousand Dollars ($300,000) for the Contractor's faithful performance of this agreement. 2. Said bond shall be so conditioned that in the event that the Contractor shall fail to comply with any one or more of the provisions of the Agreement, then there shall he recoverable jointly and severally from the Contractor and surety any 11 0 0 damages or loss, or costs suffered or incurred by the City as a result thereof, including attorney's fees and costs of any action or proceeding, and the full amount of any compensation, indemnification, cost of removal or abandonment of any property or other cost which maybe in default, up to the full principal amount of such bond. 3. Said bond shall not be canceled, altered or allowed to lapse without at least thirty (30) days' prior written notice to the City Clerk by the surety. 4. Failure to file or maintain such a bond shall be deemed a breach of the Agreement, and shall be grounds to terminate the Agreement by the City Council. M. INSURANCE 1. Contractor shall concurrently furnish to the City and file with the City Clerk, and at all times during the existence of any franchise granted hereunder, maintain in full force and effect, at its own cost and expense, a general comprehensive public liability insurance policy, including coverage for premises-operations, explosion and collapse hazard, underground hazard, contractual insurance, broad form property damage, independent contractors; personal injury and comprehensive automobile liability, comprehensive insurance in protection of the City, its officers, boards, commissioners, agents and employees, with a company approved by the City Manager in a form satisfactory to the City Attorney, protecting the City and all persons against liability for loss or damage for personal injury, death and property damage, occasioned by the operations of the Contractor under this Agreement with a minimum of not less than Five Million Dollars ($5,000,000.00) combined single limit for bodily injury, including accidental death and property damage. 2. The City, its officers, boards, commissions, agents and employees shall be named as an additional insureds in any of said insurance policies. Where such insurance is provided by a policy which also covers Contractor or any other entity or persons, it shall contain the standard cross-liability endorsement. Such policies shall contain a provision that a written notice of cancellation or material alteration in coverage of said policy shall be delivered to the City Clerk thirty (30) days in advance of the effective date thereof. Said insurance Policy shall contain the following endorsements: (a) The naming of an additional insured, as herein provided, shall not affect any recovery to which such additional insured would be entitled under this policy if not named as such additional insured; and 12 0 0 (b) The additional insured named herein shall not be held liable for any premium or expense of any nature on this policy or any extension thereof; and (c) The additional insured named herein shall not; by reason of being so named, be considered a member of any mutual insurance company for any purpose whatsoever; and (d) The provisions of the policy will not be changed, suspended, canceled or otherwise terminated as to the interest of the additional insured named herein without first giving such additional insured thirty (30) days written notice; and (e) Any other insurance held by the additional insured shall not be required to contribute anything toward any loss or expense covered by the insurance which is referred to by the certificate. 3. Failure to file or maintain said policy of insurance shall be deemed a breach of the Agreement, and shall be grounds to terminate the Agreement by the City Council. N. CITY HELD HARMLESS Contractor shall indemnify and hold harmless the City, its officers, boards, commissions, agents and employees against and from any and all claims, demands, causes of actions, actions, suits, proceedings, damages, costs and liabilities (including costs on liabilities of the City with respect to its employees) of every kind and nature whatsoever including, but not limited to, damages for injury and death, or damage to persons or property, and regardless of the merit of any of the same, liability for environmental cleanup or response costs related to the hauling and disposal of the waste and or recyclable materials that are the subjects of this agreement, and against all liability to others and against any loss, cost and expense resulting or arising out of any of the same including any attorney fees, accountant fees, expert witness or consultant fees, court costs, per diem expense, traveling and transportation expense or other cost or expenses arising out of, or pertaining to, the exercise or the enjoyment of this Agreement whether such performance be by the Contractor, his sub-contractor, or anyone directly or indirectly employed by him, and whether such damages accrue or are discovered before or after termination of this Agreement. 0. AGREEMENT TERM AND RENEWAL 1. The Contractor shall have the exclusive right to collect, haul and dispose of all refuse within the City for a period of five (5) years from the effective date of this Agreement. 13 0 0 2. The Agreement may be renewed for successive five-year periods or any lesser period if the City and the Contractor both consent thereto in writing. Contractor's request for renewal must be submitted no sooner than 3 years and six months after the effective date of this contract and no later than six months prior to the expiration date of the contract. The City may establish conditions for renewal and may require contractor to submit a detailed proposal describing requested terms of renewal and other pertinent information as deemed necessary by the City Council. This provision is not intended to confer any renewal rights to Contractor whatsoever. The City retains the option to seek additional proposals at the conclusion of this term. P. TERMINATION 1. In addition to any other remedy herein provided, or provided by law, the City may terminate this agreement if the contractor is in default of any term or provision hereof, including the requirements that performance shall be in a workerlike manner and otherwise satisfactory to the City; provided, however, that before such right of termination may be exercised by the City, the City shall give to the Contractor written notice of such default, specifying the particulars in which the Contractor is in default, and if such default is cured and satisfactory service rendered by the Contractor as determined by the City, within 15 days after such written notice, the agreement shall not be terminated by the City. During the 15- day period, the contractor may request a hearing before the City Council and submit evidence in accordance with Section 2 below or any other information showing that no default has occurred. The City Council shall afford Contractor a due process hearing during which it considers all pertinent information before its final determination regarding termination or other remedies. 2. Acts of God or acts of other persons or combinations thereof over which the Contractor does not have control are not subject to complaint as matters of unsatisfactory or failure of performance by the Contractor. The Contractor is responsible to show evidence of these conditions to the satisfaction of the City. 3. In the event the Contractor shall for any reason become unable to or fails in any way to collect or remove refuse as provided herein, and Contractor is determined to be in default of its contractual obligations after the opportunity for hearing before the City Council, the City may declare the amount of the performance bond described herein forfeited to the City. 4. Should this Agreement be terminated for any reason, all accounts receivable records and route records shall immediately become the property of the City. 14 0 % 5. In the event of termination of this Agreement due to breach by the Contractor, Contractor shall be liable to the City for all loss, damage or expense for which the City may become liable or indebted to provide replacement service to its residents and businesses. 6. In the event Contractor is not awarded an agreement to continue to provide the services required by this Agreement, at the end of the term hereof, or upon termination for cause prior to the end of the term hereof, then Contractor shall cooperate fully with City and subsequent Contractor to assure a smooth transition. Such cooperation shall include, but not be limited to, the following: A. Providing current and historical records as requested by the City on customer billing (providing computer tapes of all accounts); and B. Maintaining and providing to City as requested Accounts Receivable; and C. Providing operating records needed to provide service to all properties in City (both equipment and staffing requirements). Q. REPORTS REQUIRED 1. The Contractor shall provide the City Manager, at the times and in the form prescribed by the City Manager, such reports with respect to the Contractor's operations as may be reasonably necessary or appropriate to the performance of any of the rights, functions or duties of the City in connection with this Agreement. 2. Such reports shall include, but shall not be limited to the following, which shall be submitted to the City Manager no later than sixty (60) days following the City Manager's request for same: (a) A detailed and complete certified financial statement, of the Contractor, with an opinion prepared by an independent Certified Public Accountant, for the preceding fiscal year. (b) An up-to-date list of all vehicles used for collecting, hauling or disposing of refuse in the City including the make, type, year, license number, identification number and ownership. (c) The names, titles and addresses of the owners, officers, directors and stockholders of the firm. 15 0 % (d) The names and titles of all employees used in providing refuse service for the City. (e) A description of all cases of property damage and personal injury that have occurred while providing refuse service for the City in the last three years. (f) A description of all traffic citations received in the past three years. (g) Workers' Compensation Experience Modification Factor for the current year. (h) Any reports required in association with Section G (4) of this Agreement. 3. Within thirty (30) days after the end of each fiscal year, Contractor shall provide the City with a written report which shall include: (a) An accurate number of residents receiving curbside service. (b) The total number of multi-family units and number of multi-unit dwellings. (c) The total number of bins in use for both single-family and multi-family units. (d) The total number of bins in use for commercial accounts. (e) The total number of roll-off containers delivered and collected during the year. (f) Total tonnage of refuse collected. 4. The Contractor shall cooperate with and provide all information sought by City in connection with the preparation and implementation of the waste characterization study and its recycling and source reduction elements. R. WORKERS' COMPENSATION INSURANCE The contractor shall at all times keep fully insured, at his own expense, all persons employed by him in connection with the performance of this Agreement as required by the provisions of the labor code of the State of California relating to Worker's Compensation and insurance and shall hold the City free and harmless from all liability arising by reason of injuries of any employee of the Contractor incurred in course of employment hereunder. The Contractor shall file and maintain certificates with the City Clerk showing said insurance to be in full force and effect at all times during the course 16 • • of the Agreement. No work shall be dune by the Contractor during any period when he is not covered by insurance as herein required. S. EQUAL OPPORTUNITY EMPLOYMENT In providing refuse service for the City, the Contractor shall not discriminate against any employee or applicant for employment because of race, creed, color, sex, national origin or physical handicap. 1. The Contractor shall take affirmative action to ensure such non- discrimination. 2. The Contractor shall post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this non-discrimination clause. 3. The Contractor shall, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, creed, color, sex, national origin or physical handicap. T. RECYCLING 1. During the term of this Agreement, CONTRACTOR shall conduct a curbside residential recycling program in the City of Rosemead. All residential dwellings on regular curb, alley and backyard service customers for trash pickup shall be part of the program. Such customers shall be provided a once-a-week pickup from curbside of newspapers, glass, cans, P.E.T. and H.D.P.E. plastic containers, placed for collection in the appropriate containers provided by the CITY. Contractor's fees for this service are included in the rates for residential trash collection. Contractor shall provide a program for the separate collection of green waste. 17 2. RESIDENTIAL CUSTOMERS' RESPONSIBILITIES. A. Contractor shall deliver, at no additional cost to City or customers, to all residential dwellings on regular curb (i.e. all residences not on bin service) and to all residential dwellings on backyard (handicapped) service two (2) plastic containers for the collection and placement for removal of recyclable materials (newspapers, glass, cans, P.E.T. plastic beverage containers and green waste as follows: 1 minimum 18-gallon container for commingled recyclable materials (glass, aluminum cans, plastic beverage containers and newspaper) 1 minimum 32-gallon container for green waste B. Residents shall place their recyclables and green waste, in the collection containers, at curbside (or backyard for qualified handicapped residents) on their regular scheduled day for trash collection. 3. REVENUE FROM SALES OF RECYCLABLE MATERIALS. Contractor shall maintain records of the amounts of materials collected and sold and the revenue received for same. Contractor, in partial consideration for the services rendered hereunder, shall be entitled to retain seventy-five per cent (75%) of the net revenue from the sale of recyclable materials. Contractor shall donate a minimum of twenty-five per cent (25%) of the net proceeds from the sale of recyclable materials, collected in the City of Rosemead, to non-profit groups which have service programs in Rosemead and have actively participated in the City's recycling program. Contractor shall provide City with quarterly reports on the program revenue and donations made to community groups. 4. PROMOTION OF PROGRAM. CONTRACTOR shall use its best efforts, in conjunction with CITY, to promote public awareness of and utilization of the program. Contractor shall provide the services of its Educational Resource Specialist as outlined in its proposal. U. ASSIGNMENT 1. Contractor shall not assign any portion of the duties to be performed by it pursuant hereto, to any person, without the prior written consent of the City being first obtained. The City shall not unreasonably withhold its consent to any such proposed assignment, provided that such consent shall not be deemed to have 18 0 % been unreasonably withheld if, after a reasonable investigation, the proposed assignee is found by the City not to be financially responsible , or not possessed of sufficient experience or qualifications to perform the obligations of this Agreement. V. RIGHTS RESERVED TO THE CITY 1. At all reasonable times, the Contractor shall permit the City's authorized representatives to examine all property of the Contractor, and to examine and transcribe any and all records kept or maintained by the Contractor under his control which pertain to this Agreement. 2. Neither this Agreement nor any provision hereof shall constitute a waiver or bar to the exercise of any governmental right or power of the City. 3. The City Council may do all things which are necessary and convenient in the exercise of its jurisdiction under this Agreement, and may determine any question of fact which may arise during the existence of this Agreement. 4. The City Manager is hereby authorized and empowered to adjust, settle, or compromise any controversy or charge arising from the operations of the Contractor under this Agreement, either on behalf of the City, the Contractor, or any customer in the best interest of the public. Either the Contractor, or any member of the public, who may be dissatisfied with any decision of the City Manager, may appeal the matter to the Council for hearing and determination. The Council may accept, reject, or modify the decision of the City Manager, and the Council may adjust, settle, or compromise any controversy or cancel any charge arising from the operations of the Contractor. W. LEGAL REQUIREMENTS & MISCELLANEOUS PROVISIONS 1. The Contractor shall obtain all permits and licenses required by the City, County, State and Federal Governments. The Contractor shall fulfill all reporting requirements to these agencies. 2. Contractor shall comply with all laws, ordinances, rules and regulations of the State, County, City, and all political subdivisions thereof having jurisdiction over work done or to be done under this Contract. Contractor must conform to and abide by all ordinances of the CITY and of the County and of cities through which waste and recyclables are to be hauled or wherein such waste or recyclables may be sold or stored. 3. To the extent not superseded by the specific provisions of this Agreement, the Proposal for The Exclusive Collection, Removal and Disposal of Residential, 19 0 % Commercial and Industrial Refuse and An Integrated Recycling Program for the City of Rosemead, submitted by Consolidated Disposal service on March 15, 1991 and modified by correspondence from Consolidated Disposal Service dated April 3, 1991, April 17, 1991, April 25, 1991, April 26, 1991 and April 29, 1991. Copies of these documents are attached hereto, collectively referred to as Exhibit "A", and made a part hereof by this reference. 4. The provisions of the Rosemead Municipal Code relating to refuse collection and disposal are hereby incorporated into and made a part of this Agreement, and whenever the provisions of the Code conflict with the terms of this Agreement, the terms of said Code shall supersede the provisions of the Agreement. 5. Time shall be of the essence of this Agreement. The Contractor shall not be relieved of his obligation to comply promptly with any of the provisions of this Agreement by any failure of the City to enforce prompt compliance. 6. All notices required to be given under this Agreement shall be given by placing such notices in the United States mail, postage prepaid, addressed as follows: in the case of notice to the City, City of Rosemead, City Hall, 8838 E. Valley Boulevard, Rosemead, California, 91770 Attention: City Manager. In case of notice to Contractor, CONSOLIDATED DISPOSAL SERVICE, INC., 12235 Los Nietos Road, Santa Fe Springs, California 90670 Attention: John A. Telesio, President/CEO. 7. This Agreement shall be binding on, and accrue to the benefit of the heirs, executors, assigns and successors in interest of the parties hereto, subject to the provisions of Section U above. 8. In the event territory is annexed to the City, and if for the three (3) years immediately prior to such annexation, refuse collection services were provided by a refuse collector authorized to perform such services by the local agency having jurisdiction over such territory prior to annexation, then such authorized refuse collector may continue to provide refuse collection service in the territory for up to five (5) years from the date of annexation. Under such circumstances, the annexed territory shall not be deemed a portion of the City for the purpose of this Agreement. If the refuse collector authorized to perform such collection services prior to annexation is the Contractor, then such territory may become a part of the City for purposes of this Agreement. 9. All disputes arising out of this Agreement shall be subject to binding arbitration, conducted in accordance with the provisions of this paragraph. In the event of a dispute concerning the provisions of this Agreement, City shall submit a list of not less than five (5) retired California Superior Court Judges it deems qualified to act as the arbitrator. Contractor shall select one of the retired judges who shall 20 act as the arbitrator. If the Contractor declines to accept any retired judge on the City's list, the then Presiding Judge of the Superior Court of Los Angeles County, or his or her designee, shall appoint a retired Superior Court Judge who shall act as the arbitrator. The decision of the arbitrator shall be binding on the parties and shall be enforceable as a final judgment of a court of competent jurisdiction. Costs of arbitration incurred pursuant to this section shall be borne equally by the parties. 10. Should litigation including arbitration be reasonably required to enforce any of the provisions of this Agreement, the prevailing party in such litigation shall be entitled to receive an award of the attorney's fees in such amount as may be set in the discretion of the court or arbitrator. The provisions of this paragraph shall survive the termination of this Agreement. 11. Contractor shall provide Cardin-Pulmonary Resuscitation (CPR) training to its on- street personnel who serve Rosemead. X. SEVERABILITY If any section, subsection, sentence, clause or phrase of the Agreement is for any reason held illegal, invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shrill not affect the validity of the remaining portions hereof. Y. EFFECTIVE DATE This Agreement shall become effective and operative on August 1, 1991, and on said date shall supersede all prior agreements heretofore executed by and between the parties concerning any portion of the subject matter hereof, and shall operate as a discharge of all obligations incurred by either party under any agreements thus superseded. Z. RATES RATE STRUCTURE - EFFECTIVE AUGUST 1, 1991 1. SINGLE FAMILY DWELLINGS - RESIDENTIAL CURBSIDE SERVICE Monthly cost per unit for regularly scheduled weekly curbside collection and disposal of residential/household waste, weekly curbside collection of recyclable materials (glass, newspaper, aluminum cans, plastic containers) but excluding such items as appliances, furniture. $ 7.85 per month per unit 21 • • 2. SPECIAL QUALIFIED SENIOR CITIZEN HARDSHIP RATE/ FOR RESIDENTIAL CURBSIDE SERVICE: Monthly cost per unit for regularly scheduled weekly curbside collection and disposal of residential /household waste, weekly curbside collection of recyclable materials (glass, newspaper, aluminum cans, plastic containers) but excluding such items as appliances, furniture. $ 5.21 per month per unit [subject to verification of eligibility] 3. SPECIAL QUALIFIED HANDICAPPED CITIZEN/BACKYARD COLLECTION RATES FOR SINGLE FAMILY RESIDENCES: Monthly cost per unit for regularly scheduled backyard collection and disposal of residential/household waste, weekly curbside collection of recyclable materials (glass, newspaper, aluminum cans, plastic containers) but excluding such items as appliances, furniture. $ 7.85 per month per unit $ 5.21 per month per unit if the handicapped individual also qualifies for the senior citizen hardship rate. [subject to verification of eligibility] 4. SPECIAL ONE-TINIE PICK-UP COST FOR PICK-UP AND DISPOSAL OF API"LIANCES, FURNITURE AND BULKY ITEMS Not to exceed rate for one-time special pick-up and disposal of appliances, furniture and other bulky items not eligible for regular collection. $10.00 per item. 5. RESIDENTIAL - SPECIAL ONE-TIME DROP-OFF AND COLLECTION OF A 3-CUBIC YARD BIN Rate for one-time drop-off and collection of a 3-cubic yard bin at a residential address. $50.95 per bin, provided bin includes one collection and delivery to the landfill and rental of bin for up to seven (7) days. Additional days and collections require additional fees. 1 6. RESIDENTIAL - SPECIAL ONE-TITRE DROP-OFF AND COLLECTION OF A 10 TO 40-CUBIC YARD "ROLL OFF" CONTAINER Rate for one-time drop-off and collection of a 10 to 40-cubic yard bin at a residential address. $ 143.59 per load (all sizes), plus tipping fees (at actual cost). Loads exceeding seven (7) tons net weight will be subject to a $25/ton surcharge. 7. MULTIPLE-FAMILY DWELLINGS-DETACHED UNITS ON A SINGLE LOT Monthly cost per unit for regularly scheduled weekly curbside collection and disposal of residential/household waste, excluding such items as appliances, furniture. $ 7.85 per month per first unit. $ 6.33 per month per each additional unit 8. MULTIPLE FAMILY UNITS - ATTACHED UNITS (APARTMENTS AND CONDOMINIUMS) AND MOBILEHOME PARKS Monthly cost per unit for regularly scheduled weekly curbside collection and disposal of residential/ household waste, excluding such items as appliances, furniture. $ 7.85 per month per first unit. $ 5.14 per month per each additional unit NOTE THAT CUSTOMERS IN MULTIPLE RESIDENTIAL CATEGORIES MAY ELECT TO UTILIZE COMMERCIAL SERVICES AND RATES IN LIEU OF RESIDENTIAL SERVICES AND RATES. 11 0 1 9. COMMERCIAL ESTABLISHMENTS - REGULAR REFUSE COLLECTION Rate per month for regular]), scheduled pick-up and collection of refuse from business, commercial and industrial establishments. Days refer to the number of pick-ups and collections per week. 3-CUBIC YARD BIN WITHOUT FORKLIFT WITH F/L 1 DAY PICK-UP $56.44/mo. $62.09/mo. 2 DAYS PICK-UP $85.66/mo. $94.23/mo. 3 DAYS PICK-UP $116 22/mo. $127.84/mo. 4 DAYS PICK-UP $147.00/mo. $161.71/mo. 5 DAYS PICK-UP $181.62/mo. $199.78/mo. 6 DAYS PICK-UP $208.05/mo. $228.86/mo. 1 1/2-CUBIC YARD BIN NVITHOUT FORKLIFT 1 DAY PICK-UP $37.98/mo. NVITH F/L $41.78/mo. 10. COMMERCIAL - ONE-TIME DROP-OFF AND COLLECTION OF A 3-CUBIC YARD BIN Rate for one-time drop-off and collection of a 3-cubic yard bin at a commercial address. $68.71 per bin, provided bin includes one collection and delivery to the landfill and rental of bin for up to seven (7) days. Additional days and collections require additional fees. 24 • • 11. COMMERCIAL - SPECIAL ONE-TI11IE DROP-OFF A_N`D COLLECTION OF A 10T0 40-CUBIC YARD "ROLL OFF" CONTAINER Rate for one-time drop-off and collection of a 10 to 40-cubic yard bin at a commercial address. $220.86 per load (all sizes) including tipping charges; 7 ton limit. Over 7 tons net per load, subject to $25.00 per ton surcharge. 12. COMMERCIAL - SPECIAL BARREL SERVICE FOR QUALIFIED COMMERCIAL, LIMITED USE CUSTOMERS Indicate rate for once a week pick-up and collection of a maximum of two not-to-exceed 35 gallon barrels. [Note: Only 48 commercial establishments entitled to this reduced- level service] $38.43 per month. THESE RATES INCLUDE FOUR (4) CITY-WIDE PICK-UP DAYS FOR LARGE BULKY ITEMS, SUCH AS APPLIANCES AND FURNITURE, WHICH SHALL BE PICKED-UP AND DISPOSED OF ON THE DESIGNATED DAYS, WITHOUT ADDITIONAL CHARGE TO THE CUSTOMER OR CITY. IN WITNESS WHEREOF, the Citv by order of its City Council and the Contractor by order of its Board of Directors, have caused this Agreement to be executed on the day and year first written above. CITY OF ROSEMEAD By. Ja T. mperial, Mayor 25 • Attest: 9L Z -:;!Y Clerk • CONSOLIDATED DISPOSAL SERVICE, INC. a California corporation John A. Telesio, Presi ent/CEO 26 • 0 FIRST AMENDMENT TO FRANCHISE AGREEMENT WITH CONSOLIDATED DISPOSAL SERVICE, INC. THIS FIRST AMENDMENT to AGREEMENT is made and entered into effective, the 11th day of January, 1994, by and between the CITY OF ROSEMEAD, a municipal corporation, hereinafter referred to as City, and CONSOLIDATED DISPOSAL SERVICE, Inc., hereinafter designated as Contractor. The franchise agreement dated August 1, 1991 between the parties hereto is hereby amended as follows: 1. Section B Work to be Done, Paragraph 1, is hereby amended to read as follows: B. WORK TO BE DONE The work to be done under this Agreement shall include the furnishing of all labor, material, equipment and expenses necessary to perform the following minimum services: Collection, hauling and disposal of refuse from the premises of any and all residents and businesses in the City, at the regularly scheduled intervals, and at the rates as provided herein. Said work shall include regularly scheduled pick-up of refuse once a week from curb or alley. Contractor is the exclusive franchise provider and the only hauler authorized to provide regularly scheduled and one-time special container (bin or roll-off) service to any residence or business or construction site requesting such service. 2. Section L Performance Bond is hereby amended to read as follows: L. PERFORMANCE BOND Upon being awarded approval for the collection, removal and disposal of refuse in the City, the Contractor shall file with the City Clerk and shall thereafter during the entire term of the Agreement maintain in full force and effect a corporate surety bond or other adequate surety agreement in a form satisfactory to the City Attorney in the amount of One Hundred Thousand Dollars ($100,000) for the Contractor's faithful performance of this agreement. 2. Said bond shall be so conditioned that in the event that the Contractor shall fail to comply with any one or more of the provisions of the Agreement, then there shall he recoverable jointly and severally from the Contractor and surety any damages or loss, or costs suffered or incurred by the city as a result thereof, including attorney's fees and costs of any action or proceeding, and the full amount of any 0 • compensation, indemnification, cost of removal or abandonment of any property or other cost which maybe in default, up to the full principal amount of such bond. 3. Said bond shall not be canceled, altered or allowed to lapse without at least thirty (30) days' prior written notice to the City Clerk by the surety. 4. Failure to file or maintain such a bond shall be deemed a breach of the Agreement, and shall be grounds to terminate the Agreement by the City Council. IN WITNESS WHEREOF, the City by order of its City Council and the Contractor by order of its Board of Directors, have caused this Agreement to be executed on the day and year first written above. CITY OF ROSEMEAD Attest: By: Robert W. Bruesch, Mayor City Clerk CONSOLIDATED DISPOSAL SERVICE, INC. a California corporation By: John A. Telesio, President/CEO ! ! CHANGES NOTED "LEGISLATIVE STYLE" B. WORK TO BE DONE The work to be done under this Agreement shall include the furnishing of all labor, material, equipment and expenses necessary to perform the following minimum services: 1. Collection, hauling and disposal of refuse from the premises of any and all residents and businesses in the City, at the regularly scheduled intervals, and at the rates as provided herein. Said work shall include regularly scheduled pick-up of refuse once a week from curb or alley. Contractor shall also is the exclusive franchise provider and the only hauler authorized to provide regularly scheduled and one-time special container (bin Z or roll-off) service to any residence or business or construction site requesting such service. L. PERFORMANCE BOND 1. Upon being awarded approval for the collection, removal and disposal of refuse in the City, the Contractor shall file with the City Clerk and shall thereafter during the entire term of the Agreement maintain in full force and effect a corporate surety bond or other adequate surety agreement in a form satisfactory to the City Attorney in the amount of Three one Hundred Thousand Dollars ($300,000)($100,000) for the Contractor's faithful performance of this agreement. 2. Said bond shall be so conditioned that in the event that the Contractor shall fail to comply with any one or more of the provisions of the Agreement, then there shall he recoverable jointly and severally from the Contractor and surety any damages or loss, or costs suffered or incurred by the City as a result thereof, including attorney's fees and costs of any action or proceeding, and the full amount of any compensation, indemnification, cost of removal or abandonment of any property or other cost which maybe in default, up to the full principal amount of such bond. 3. Said bond shall not be canceled, altered or allowed to lapse without at least thirty (30) days' prior written notice to the City Clerk by the surety. 4. Failure to file or maintain such a bond shall be deemed a breach of the Agreement, and shall be grounds to terminate the Agreement by the City Council. • 0 TO: CITY MANAGER FROM: CITY ATTORNEY RE: CONSOLIDATED DISPOSAL FAITHFUL PERFORMANCE BOND REQUEST DATE: December 22, 1993 I have reviewed the request from Consolidated Disposal for a reduction in the amount of the franchise performance bond from $300,000 to $100,000. Such a reduction is normal after a new franchisee has operated the franchise without interruption for a period of time. I have no objection to such a reduction. The reduction would require an amendment to the franchise agreement. • • CHAPTER IV - GAR5AGS AND RUSSISH DISPOSAL Le^islative Policy. The City Council does hereby find \ and determine that the storage, accumulation, collection and disposal of garbage, trash, rubbish, debrjs and other discarded matter, goods and materials is a matter of great public concern, in that improper control of such matters can lead to air pollution, fire hazards, insect breeding and rat infestation and other problems affecting the health, welfare and safety of the resi- dents of this and surrounding cities. The City Council further declares that the regulations in this Chapter provided are designed to eliminate or alleviate such problems. 56 1-10-61 5402. Definitions. (a) Garbage. "Garbage", when used in this Chapter shall mean and include all animal and vegetable refuse and waste matter originating in kitchens (residential and commercial), stores, markets, warehouses and delivery vehicles, and resulting from the handling, storing, processing. preparing, preserving, selling or delivering of meat, fish, focal or other animal food or from vegetables, fruits, melons and other vegetable food, including vegetable trimmings and vegetable or animal matter not fit for human consumption, remaining in or coming from any market, store or other place, private or commercial, where meat, fish, fruit or vegetables are sold, processed, stored or handled. 56 1-10-61 (b) Combustible and Non-Combustible Rubbish. Combustible and non-combustible rubbish shall mean all waste and refuse capable of burning readily, including trimmings, lawn trimmings, plants or flowergarden waste, wood, paper, straw, packing materials, leather, rubber, clothing, bedding, books, magazines, newspapers, rags and all other similar articles which will burn by contact with flames of ordinary temperature; and ashes, tin cans and bottles, glass, crockery, china, pottery, metal wire, discarded household furniture, furnishings or appliances, dead small animals and animal excreta and other similar materials which are rejected by the owner or producer thereof as worthless or useless, excluding therefrom, (1) Trunks, stumps or limbs of trees, or bundles of such materials, exceeding one hundred (100) pounds in weight or four (4) feet in length; ti -153- 5'~0- • .5402. ( 2 ) Automobile parts, bodes or junk automobiles. Cont'd N. (3) ;taste material resulting from construction, alteration or repair, rock, brick, stone, cement, plaster or sod generated or discarded by a contractor or other person in the scope of his business. 388 11-12-74 (c) Miscellaneous Debris. "Miscellaneous debris", as used in.this Chapter, shall be deemed to include any and all trash, rubbish, debris or other aban- doned or discarded materials not otherwise provided for under the foregoing definitions, or as expressly excepted therefrom, except dead small animals, animal excreta and garbage. 56 1-10-61 (d) Combined Rubbish. "Combined rubbish", as used in this Chapter, shall mean garbage, combustible and non-combustible rubbish and/or miscellaneous debris, as hereinbefore defined, deposited together in a single container by the householder for collection and disposal. (e) Householder. "Householder", as used in this Chapter, shall mean a person owning, renting, or otherwise holding and occupying a house or place of abode, including a trailer, apartment or motel unit with kitchen, singly or with his family. (f) Storage. "Storage" when used in this Chapter, shall include the accumulating, maintaining, dumping, abandoning, storing, collecting or other gathering, stacking or piling, other than in a mercantile building or in a dwelling unit, which latter places shall be regulated by the Fire Prevention Code. 56 1-1o-61 Contractor. shall mean or corporation with who or to whom the City has the collection, removal waste or rubbish in the any person, firm, business n the City may have a contract granted a franchise for and disposal of garbage, City of Rosemead. 145 12-8-64 (h) Commercial Customer. "Commercial Customer" as used in this Chapter, shall mean an owner or operator of a business, commercial or industrial establishment or anyone electing to utilize commercial services pursuant to any contract or franchise agreement bet;e n the City and Contractor. 388 11-12-74 -154- E r RECY- r E W"T:) `ri CONSOLIDATED DISPOSAL SERVICE. INC. December 16, 1993 Mr. Frank Tripepi City Manager City of Rosemead 8838 East Valley Boulevard Rosemead, California 91770 Re: Faithful Performance Bond Requirements Dear Frank: Confirming our recent conversation, please accept this formal request for a reduction of the faithful performance bond required by the City of Rosemead, in relation to refuse collection and disposal services provided by Consolidated Disposal Service, Inc. Consolidated's franchise with the City took effect over 2 years ago, and since that time, Consolidated has provided the subscribed for services without interruption and to the highest possible levels. Consolidated believes that it has demonstrated reliability as a waste services provider, and that the City should now have the confidence that it's risks under the franchise, are minimal. In addition, by way of track record, Consolidated has never been found in default in any of the cities where it services, in over 40 years that the company has existed. Therefore, Consolidated respectfully requests, at this time, that the City consider reducing its performance bond requirement to $100,000, an amount more typical of cities the size of Rosemead. Consolidated would be very appreciative of any assistance you can provide in accommodating this request, and we thank you very much for your time and consideration on this matter. Sincerely, John A. Telesio President/CEO cc: Enrique Vazquez - Executive Vice President/COO - CDS Jesse Quintana - Controller - CDS PRINTED ON RECYCLED PAPER ILJ 1'2'.'.35 LOS NIETOS ROAD C;~, SANTA FE SPRINGS. CA 90670 (310) 9.16-6441 C~5 FAX(310)941-4767 0 SECOND AMENDMENT TO • EXCLUSIVE REFUSE COLLECTION AND RECYLCING FRANCHISE AGREEMENT This Agreement made and entered into this 25th day of June, 1996 by and between the CITY OR ROSEMEAD, a municipal corporation, hereinafter referred to as "City" and CONSOLIDATED DISPOSAL SERVICE, INC. hereinafter referred to as "Contractor" hereby amends that certain agreement made and entered into effective August 1, 1991 and amended effective January 11, 1994 between the parties, hereinafter referred to as "Agreement". NOW THEREFORE, the City and the Contractor agree as follows: 1. The second paragraph of the Agreement is hereby revised to read as follows: The City and Contractor agree each with the other that Contractor shall have sole right to collect, haul and dispose of all refuse and conduct a comprehensive recycling program in the City of Rosemead for a term commencing August 1, 1996 and expiring July 31, 2001, provided however, that commencing August 1, 1997 and every year thereafter, automatic one year extensions shall be applied to said Agreement so that the term of this Agreement shall thereafter remain at a constant five years, subject to the rights of the parties to terminate the Agreement set forth in paragraph P. 2. Paragraph F - Collection Rates and Billing is hereby revised to read as follows: F. COLLECTION RATES AND BILLING 1. The City and Contractor, as part of this Agreement, fix and determine uniform rates that shall be charged by the Contractor for the collection and removal of refuse. The rates thus fixed and determined shall remain in effect for the period prescribed or until changed pursuant to the provisions hereof. The Contractor shall not charge or collect any fees or rates other than the fees or rates thus fixed and determined. 2. The City Council shall, not more frequently than once per year, authorize a rate adjustment by application of the following formula and procedure to then current rates: • • the total rate paid by customers is comprised of t«vo components • 0 Recovery Facility operations, a separate formula shall be set forth which takes into account the disproportionate disposal costs associated with commercial Materials Recovery Facility serviced accounts. 3. The Contractor shall not make or grant any preference or advantage to any person, nor subject any person to prejudice or disadvantage with respect to rates, fees, charges, service, facilities, rules, regulations, or any other respect. Contractor is specifically authorized to charge a Senior Citizen Hardship rate and a Handicapped rate for those accounts who meet the following eligibility criteria: A. SENIOR CITIZEN HARDSHIP RATE - Those customers, aged 62 and over, who meet the following income limitations, shall be entitled to the Senior Citizen Hardship Rate as listed in this Agreement: Single Income not to exceed $1,098 per month Family (2 or more) Income not to exceed $2,198 per month Contractor is authorized to require proof of age and an affidavit of eligibility signed by the customer. The "not to exceed" income levels listed above shall be increased to reflect cost of living adjustments on August 1 each year of the franchise. B. HANDICAPPED RATE - Those customers, who meet the eligibility requirements of the Department of Motor Vehicles for issuance of a handicapped parking permit, shall be entitled to backyard service, at the regular residential rate. If the handicapped individual also qualifies for the Senior Citizen Hardship Rate, he or she shall be entitled to backyard service at the Senior Citizen Hardship Rate as listed in this Agreement. 4. Except as otherwise provided herein, Contractor will bill each customer directly for service and will collect from such customer for same. City shall not be responsible for collection or payment for such services. 5. Contractor may not suspend its collection and disposal services hereunder to a customer who has failed to pay a proper billing for services. Contractor shall make all reasonable efforts to diligently pursue and collect all fees and charges due Contractor for rendering such services. In the event of a delinquency, the Contractor shall also notify the owner of the real property of the amount of the • • delinquency and the possibility of property tax lien collection. Contractor shall provide to City, not more frequently than quarterly, individual letters, postage prepaid, which contain the names of the property owner and occupant (if different from the owner), the address of the owner as shown on the latest updated assessment roll, including the assessor's parcel number and whatever other information is required by the Los Angeles County Tax Collector. Said letters shall state the amount of delinquency, penalties, late charge(s) and collection costs. City shall allow Contractor to use the update assessment roll records available at City Hall. City allows such use as an accommodation only and does not warrant the accuracy of such records. The only responsibility of the City pertaining to notice of and public hearing shall be as follows: The City Manager or his designee shall notify property owners by sending the letter designated in the paragraph next above. Such notice shall further declare that the City Council shall at a regular meeting, review and approve as an assessment against the property the amount delinquent and unpaid, the amount of the penalty and late charge(s), collection costs, including administrative costs incurred. If the total assessment determined and approved by the City Council is not paid within ten (10) days after such determination, then and in that event, there shall be recorded in the Office of the County Recorder a statement of the total balance due together with the legal description of the property affected. From and after the date of such recordation, the balance due shall be a special assessment against the real property. The assessment shall be collected at the same time and in the same manner as are county property taxes and shall be subject to the same penalties and to the same procedure and sale in cases of delinquency as provided for other taxes and assessments appearing on the county property tax bill. All laws applicable to the levy, collection and enforcement of county taxes shall be applicable to such special assessment. Contractor shall be paid the amount actually recovered by the City on an unpaid account less 10% (ten per cent). Said payment to Contractor shall be made within thirty (30) days of the City's receipt of funds. 6. The Contractor shall obtain the written approval of the City Manager as to the billing periods used. 7. Each bill shall contain the name, address, telephone number and office hours of the Contractor, the amount and period being billed, a statement that the Contractor will provide, upon request, a complete list of the rates for the various types of services provided by the contractor, a statement indicating how to file a complaint and how complaints are resolved, as well as the possibilities 4 • 0 of recourse available to customers, the holiday schedule, and any other information necessary to assist residents as determined by the City Manager. At least 30 days prior to any rate change, the Contractor shall mail all customers notice of said rate change. 3. Paragraph I- Refuse Containers is hereby amended to read as follows: 1. REFUSE CONTAINERS 1. Contractor shall implement an automated residential container program by December 1, 1996. 2. Each residence will be furnished, at no charge, one automated container with approximately 100 gallon capacity. Additional 100 gallon containers will be provided at a charge of $1.50 per month for those residents who require additional capacity. Smaller containers will be made available for customers with special circumstances justifying a smaller container. 3. Contractor shall submit a detailed implementation plan of the automated collection program to the City for advance approval. 4. Once the automated collection program is fully implemented, customers must place all refuse in the automated container(s) provided. No trash bags, cardboard boxes, loose debris or waste placed in other non-automated containers will be collected with the exception of appropriately sorted and tagged green waste and disposal items on designated quarterly"bulky item" citywide collection days. 5. All refuse containers shall be replaced, upright, with the lids immediately beside the containers. Containers and lids shall not be placed or thrown on the streets, alleys, highways, or on adjoining property. 6. The Contractor, his agents and/or employees, shall not throw refuse containers from the truck to the pavement or parkway, shall not cause damage by striking them against the truck to dislodge contents, or in any other way break or damage or roughly handle the same. 7. All claims for damage of containers, by reason of the misuse or rough handling of said containers by the Contractor, shall be presented to the Contractor by the resident. The Contractor shall make a decision concerning settlement within 48 hours of receipt of such claims. i • 8. Any contractor supplied refuse container which will no longer hold refuse without spilling, which leaks or is not water tight shall be replaced by the Contractor upon notification of the Contractor by the person from whom refuse is collected, within ten (10) days. 9. The Contractor shall provide large capacity containers (bins) for mechanical loading wherever customers so request their use, and the use thereof shall be in accordance with the rates established herein. Each container provided shall have the Contractor's name, or company name, placed and maintained on one or more locations on the outside in letters not less than three (3) inches in height. The Contractor shall regularly inspect all large capacity containers, repair or replace any damaged containers, and maintain an inventory need to meet the demand of customers. All such containers shall be maintained by Contractor so as not to leak. Upon customer request, containers shall feature tight-sealing lids (the Balanced Lid Systems (or equivalent) bins specified in Exhibit D to the Contractor's proposal) 10. Residents electing to use large capacity containers for mechanical loading shall use such containers exclusively and shall place such container for pick-up where they are readily accessible to the Contractor's equipment. 11. The Contractor shall provide sufficient workers and equipment so as to limit the time that the bins are placed in the public right-of-way to a maximum of three (3) hours. 4. Paragraph O- Agreement Term and Renewal is hereby amended to read as follows: The Contractor shall have the exclusive right to collect, haul and dispose of all refuse within the City for a term commencing August 1, 1996 and expiring July 31, 2001, provided however, that commencing August 1, 1997 and every year thereafter, automatic one year extensions shall be applied to said Agreement so that the term of this Agreement shall thereafter remain at a constant five years, subject to the rights of the parties to terminate the agreement set forth in paragraph P. of Agreement. Should either party desire that said automatic one-year renewal and extension term be terminated, such party may give the other written notice of such not later than May 1 of any year of the Agreement. Such notice will terminate the automatic one-year renewal and extension provision, and the Agreement shall remain in effect for the balance of the term outstanding. 5. Paragraph T- Recycling is hereby amended by the addition of the following at the conclusion thereof: 5. Commercial recycling program. The Contractor shall undertake the program • • described in its Waste Services Franchise Renewal Proposal. Prior to the implementation of Phase II - Materials Recovery Facility, the Contractor and City shall negotiate a rate to be paid by commercial accounts that will reimburse the Contractor for the substantial additional disposal costs associated with Materials Recovery Facilities. An implementation plan and initial rate schedule for commercial accounts with Materials Recovery Facility service shall be subject to the City Council's review and approval. Upon adoption of the initial rate schedule, a separate rate adjustment formula shall be set forth which takes into account the disproportionate disposal costs associated with commercial Materials Recovery Facility serviced accounts. 6. A new paragraph "AA - AB 939 Indemnification" is hereby added to the Agreement as follows: AA. AB 939 Indemnification. Contractor agrees to protect, defend, indemnify and hold harmless the City against 90% (ninety percent) of all fines or penalties imposed by the California Integrated Waste Management Board or its successor due to the failure of the City to divert from landfills at least 25% (twenty five percent) of the garbage and rubbish including recyclable materials attributable to City, or, commencing no earlier than January 1, 2000, 50% (fifty per cent) of such garbage and rubbish including recyclable materials thereafter, or such lesser percentage equal to the landfill diversion goals imposed on local governments by AB 939 as it may be amended from time to time provided that the City's failure to accomplish the landfill diversion goals shall not result from any negligent or willful act or omission of City. 7. A new paragraph "BB - Hazardous Materials" is hereby added to the Agreement as follows: BB. Hazardous Materials. Contractor shall adopt and adhere to a training program that will assist their employees to identify and properly dispose of any hazardous materials that may come into their possession. Contractor shall reasonably assist City in dissemination of information regarding hazardous materials to local residents and businesses. 7 • • IN WITNESS WHEREOF, the City by order of its City Council and the Contractor by order of its Board of Directors, have caused this Second Amendment to Agreement to be executed on b 1996. CITY OF ROSEMEAD By: 2&e, .-a,.c.~ Marga t Clark, Mayor ATTEST: r City-Clerk CONSOLIDATED DISPOSAL SERVICE, INC. n By, n John A. Tel io, President/CEO l • THIRD AMENDMENT TO • EXCLUSIVE REFUSE COLLECTION AND RECYLCING FRANCHISE AGREEMENT This Agreement made and entered into this 27th day of September, 2005 by and between the CITY OF ROSEMEAD, a municipal corporation, hereinafter referred to as "City" and CONSOLIDATED DISPOSAL SERVICE, a subsidiary of REPUBLIC SERVICES, INC., hereinafter referred to as "Contractor" hereby amends that certain agreement made and entered into effective August 1, 1991 and amended effective January 11, 1994 and June 25, 1996 between the parties, hereinafter referred to as "Agreement". NOW THEREFORE, the City and the Contractor agree as follows: 1. Paragraph 2 of Section T - RECYCLING is hereby amended to read as follows: RESIDENTIAL CUSTOMERS' RESPONSIBILITIES. A. Contractor shall deliver, at no additional cost to City or customers, to all residential dwellings on regular curb (i.e. all residences not on bin service) and to all residential dwellings on backyard (handicapped) service two (2) plastic containers for the collection and placement for removal of recyclable materials (newspapers, glass, cans, P.E.T. plastic beverage containers and green waste as follows: 1 minimum 64-gallon container for commingled recyclable materials (glass, aluminum cans, plastic beverage containers and newspaper) I minimum 32-gallon container for green waste (already in use) B. Residents shall place their recyclables and green waste, in the collection containers, at curbside (or backyard for qualified handicapped residents) on their regular scheduled day for trash collection. 2. The following Paragraph 3 of Section T- REVENUE FROM SALES OF RECYCLABLE MATERIALS is hereby amended to read as follows: 11 • 3. REVENUE FROM SALES OF RECYCLABLE MATERIALS. Contractor shall maintain records of the amounts of materials collected and sold and the revenue received for same. Contractor, in partial consideration for the series rendered hereunder, shall be entitled to retain 100% of the revenue from the sale of recyclable materials. 3. The final paragraph of Section Z, currently providing: "THESE RATES INCLUDE FOUR (4) CITY-WIDE PICK-UP DAYS FOR LARGE BULKY ITEMS, SUCH AS APPLIANCES AND FURNITURE, WHICH SHALL BE PICKED-UP AND DISPOSED OF PM THE DESIGNATED DAYS, WITHOUT ADDITIONAL CHARGE TO THE CUSTOMER OR CITY." is hereby deleted. 4. A new section CC is hereby added to the Agreement to read as follows: CC. BULKY ITEM PICKUP 1. Definitions. Bulky Items shall mean discarded household furniture, furnishings or appliances, including white goods; carpets; mattresses; large branches; limbs of trees in bundles not exceeding eighteen (18) inches in diameter or four (4) feet in length and other items the size and weight of which precludes or complicates their handling by normal collection, processing or disposal methods and which can be loaded onto a collection vehicle by not more than two (2) persons. E-Waste shall mean certain electronic waste defined in California state law and regulated by the California Integrated Waste Management Board as non-hazardous and unavailable to municipal landfills. 2. Effective on January 1, 2006, Contractor shall implement the following Bulky Item collection program: On an as-needed, on-call basis, the Contractor will respond to up to four (4) requests per year from single-family units on residential service for collection of Bulky Items on the regular collection day each week at no extra charge. The number of • 0 collections for residential properties on commercial collection service shall be determined on a case by case basis as agreed to by the Contractor and City Manager. Each bulky item collection will be limited to a maximum of five (5) bulky and or a-waste items. The customer must call Contractor at least twenty-four (24) hours in advance prior to the regular collection day to schedule a bulky item pickup. 5. Rates. Subject to confirmation at a public hearing, the rates specified in Exhibit A shall take effect on the first day of the month following the Contractor's implementation of the bulky item pick up plan and delivery of the new, automated recycling containers. 6. Except as provided for in this Third Amendment, the provisions of the Exclusive Franchise Agreement, as amended, shall remain in full force and effect. IN WITNESS WHEREOF, the City by order of its City Council and the Contractor by order of its Board of Directors, have caused this Second Amendment to Agreement to be executed on September 27, 2005. CITY OF ROSEMEAD ATTEST: City Clerk By: Jay T. Imperial, Mayor CONSOLIDATED DISPOSAL SERVICE, a subsidiary of REPUBLIC SERVICES, INC. By: 0 EXHIBIT A City of Rosemead Rates 2005 - 2006 Residential Rates: 11 Category Current Rate New Rate Single Family Dwelling - Residential Curbside one 100 Gal Cart) $ 12.44 $ 14.66 Multiple Family Dwelling-Detached Units On A Single Lot: First Unit $ 12.44 $ 14.66 Each Additional Unit $ 10.05 $ 11.84 Multiple Family Units - Attached Units ( Apartments and Condos) And Mobilhome Parks: First Unit $ 12.44 $ 14.66 Each Additional Unit $ 8.18 $ 9.64 Special Qualified Senior Citizen Hardship Rate / For Residential Curbside Service $ 8.28 $ 9.75 Special Qualified Handicapped Citizen / Backyard Collection Rates For Single Family Residences: $ 12.44 $ 14.66 Additional 100 Gallon Cart $ 2.14 $ 2.52 Special One-Time Pick-Up Cost For Pick-Up And Disposal Of Appliances, Fumiture And Bulk Items $ 15.89 $ 18.71 Residential - Special One-Time Drop-Off And Collection of A 3-Cubic Yard Bin Pick U / Delivery Charge $ 54.98 $ 54.98 Each Dump $ 22.18 $ 22.18 Total $ 77.16 $ 77.16 Residential - Special One-Time Drop-Off And Collection of A 10 to 40 Cubic Yard "Roll-Off" Container $ 430.19 $ 506.76 Overweight 7 Ton Limit $ 52.66 $ 52.66 Dail Rental After Seven Days Without A Dump $ 15.00 $ 15.00 Dead Run $ 75.00 $ 75.00 Commercial Rates 3 Cubic Yard Bins CURRENT RATE Without Forklift Forklift 1 Da P/U 100.27 110.29 2 Da P/U 152.20 167.38 3 Da P/U 206.48 227.11 4 Da P/U 261.16 287.26 5 Da P/U 322.65 354.92 6 Da P/U 369.59 406.58 NEW RATE Without Forklift Forklift 1 Da P/U 100.27 110.29 2 Da P/U 152.20 167.38 3 Da P/U 206.48 227.11 4 Da P/U 261.16 287.26 5 Da P/U 322.65 354.92 6 Da P/U 369.59 406.58 1 1/2 Cubic Yard Bins CURRENT RATE Without Forklift Forklift NEW RATE Without Forklift Forklift 9 1 Da P/U 68.39 74.22 • 1 Da P/U 68.39 74.22 Category Current Rate New Rate Commercial - One-Time Drop-Off And Collection Of A 3-Cubic Yard Bin Pick U / Delivery Charge $ 67.30 $ 67.30 Each Dump $ 35.13 $ 35.13 Total $ 102.43 $ 102.43 Commercial - Special One-Time Drop-Off And Collection of A 10 to 40 Cubic Yard "Roll-Off" Container $ 392.35 $ 392.35 Overweight 7 Ton Limit $ 50.12 $ 50.12 Dail Rental After Seven Da Without A Dum $ 15.00 $ 15.00 Dead Run $ 75.00 $ 75.00 Commercial - Special One-Time Drop-Off And Collection Of A 30 Cubic Yard Compactor Container $ 519.72 $ 519.72 Overweight 9 Ton Limit $ 50.12 $ 50.12 Dail Rental After Seven Days Without A Dump $ 15.00 $ 15.00 Dead Run $ 75.00 $ 75.00 Commercial - Special Barrel Service for Qualified Commercial, - - Limited Use Customers. Max 2-35 gallon cans 1 time per week r$- 76 8 $ 68.27 Rate Change Calculation Landfill Dump Fees Puente Landfill South Gate Trans Commerce PH Greenwaste Puente Landfill South Gate Trans Commerce PH Greenwaste ' Per YTD 2005 Tonnage CPI Weight Effective Rate 0.0% - 77.6% 25.58 22.4% 8.75 0.0% - 100% 34.33 Old " $ 20.88 $ 32.98 $ 39.00 $ 11.00 Weight' Effective Rate 0.0% - 55.0% 19.11 45.0% 18.92 0.0% - 100% 38.03 " Adjusted for Commerce Burner activity %change May-05 200.7 0.0% New $ 22.65 $ 34.77 $ 42.00 $ 12.10 Jun-04 200.7 Total 0.0% Residential Old New %change Change in Effective Rate 31.43 $ 31.43 0.0% 9 0 Residential Rate Weighted CPI Adjustment Value Increase Percentage Increase to cover a-waste change 0.8% Increase to cover automation of Recyc program 17.0% Consumer Price Index 0.7 X 0.0% = 0.0% Disposal Tipping Fee 0.3 X 0.0% = 0.0% Increase in Residential Rates 17.8% Commercial Old New %change Change in Effective Rate 36.40 36.40 0.0% Commercial Rate Weighted CPI Adjustment Value Increase Percentage Consumer Price Index 0 X 0.0% = 0.0% Disposal Tipping Fee 0.3 X 0.0% = 0.0% Increase in Commercial Rates 0.0% = Rate proposed requires cancellation of 25% recycling rebate to City of Rosemead (or beneficiary). • MEMO To: Bill Crowe (City of Rosemead) Don Wagner (City of Rosemead) From: Eugene Tseng (E. Tseng and Associates) Subject: Recycling Program Recommendations Date: September 21, 2005 • The City of Rosemead is currently meeting the program implementation requirements of the California Integrated Waste Management Board's (CIWMB) approved Time Extension Petition filed by the City of Rosemead. Three issues need to be examined for optimizing the recycling programs: a) Automating Residential Source Separated Recycling b) Automating Residential Greenwaste Collection c) Collection of Residential Bulky Items and Abandoned Bulky Items The City of Rosemead's franchise hauler has presented several recycling program options to deal with increasing recycling and also reducing abandoned bulky waste. The table lists five (5) options, including a no-change (existing program) alternative in the attached table. The table also reflects the cost of the proposed program options (with the most current rate change allowed for by contract). The consultant recommends adopting Option 2, which includes changing the current manual source separated residential recycling program into an automated recycling program using a 64- gallon blue bin, and changing the current quarterly bulky item pickup to an all year pickup during the residents' normally scheduled trash day. (Bulky items and electronic waste (e-waste) will have 4 pickups per year per household, 5 items per pickup). An automated greenwaste collection program is not recommended. Detailed discussion below. 1. Automating Residential Source Separated Recycling The City of Rosemead currently experiences significant scavenging from the 18-gallon manual recycling bins that are set out on curbside. Industry/jurisdiction and experience indicates that the use of a larger (64 gallon Blue Bin) and automated recycling bin will cut down on the level of scavenging and also increase the amount recovered. The consultant has reviewed the impact of • 0 various local automated residential recycling programs in Orange County and Los Angeles County, and typically, the increase in residential curbside recovery is almost 150% increase in the tonnage when the program is switched from manual to an automated system. Automation of the residential curbside recycling does represent an increase over the existing program costs, but it is a program that the CIWMB has indicated that is optimal for the City of Rosemead. I recommend the implementation of the automated residential curbside recycling program using a 64-gallon program. 2. Automating Residential Greenwaste Collection An automated residential greenwaste (Option 4 or Option 5) collection program is not recommended. The primary reason is that the manual program is adequate. The current program allows the residents to request additional greenwaste bins without charge. Capacity of the current program is not a problem. The consultant had staff conduct random spot visual checks of greemvaste and trash bins to determine the level of contamination, and to see if residents had requested sufficient capacity for the greenwaste they generated. The manual system has an advantage in that the bins are visually observed as they are emptied, and as such, can be checked for contamination. Industry/jurisdiction experience indicates that "manual" greenwaste programs have a better "quality control" aspect when compared to automated. In addition, automating greenwaste will increase the costs to the residents, and with the current greenwaste recycling collection system being adequate, the consultant does not recommend adopting an automated program. 3. Collection of Residential Bulky Items and Abandoned Bulky Items The City of Rosemead currently has a bulky item program where there is one designated week per quarter where residents can call in for bulky item pickup. Often the collection period is not remembered, or notice goes unread, and does result in bulky items set out on non-collection days. In addition, there are a number of "truly abandoned" bulky items that are left in areas, causing unsightly nuisances. The franchise hauler, Consolidated Disposal Services, has offered several options. Option 2 requires the resident call in for pickup, but pickup is only on the normal trash pickup day. This is the option recommended by the consultant. This option includes a-waste as part of the bulky item pickup program. For "truly abandoned" bulky items not belonging to any resident, the City has a limited amount of pickups included in the proposed rate. Any additional pickup beyond the budget (approximately $1000 per year) is billed to the city. (Note that in Option 4, any additional pickup beyond the budget (approximately $1000 per year) is also billed to the city. One of the options, Option 5,is that the resident (household) may call (24 hours notice) at any time for pickup, even not on trash pickup day. This is the most costly option, and all bulky items will be picked up, including all "truly abandoned" items. 0 0 The consultant recommends Option 2 because the residents will have the convenience and ease of remembrance that bulky item collection is available on any regularly scheduled trash day as long as they call in advance. This is extremely convenient, and the consultant believes that "truly abandoned" bulky items will be significantly reduced with Option 2. The incremental cost of having the anytime 24 hour call for bulky item pickup is $0.62 per household per month, or approximately $85,000 per year more to the residents. The additional cost of having anytime call-in bulky item pickup (24 hour call notice) and automated greenwaste recycling (Option 5) is approximately $1.82 per month per household more than that of Option 2, amounting to almost $250,000 per year for the residents (based on the estimate of 11,444 residential accounts in the City of Rosemead, and based on a 5-Year Contract). Over a period of five (5) years, this amounts to approximately $1,250,000 from the residents of Rosemead. CDS Residential Disposal / Recycling Program Options and Proposed Costs (Reflects 3.7% Rate Increase) (Revision 9) Row Residential Collection Program Components Existing Option 1 Option 2 Option 3 Option 4 Option 5 A Automated 96 Gallon Disposal X X X X X X B 18 Gallon Recycling Crate (Manual) X C 32 Gallon Greenwaste (Manual) X X X X D Automated 64 Gallon Blue Recycling Bin X X X X X E Automated 64 Gallon Greenwaste Recycling Bin X X F Quarterly Bulky Item Collection X G Trash Day Bulky Item, 4x Pickups per year (Call In, 5 items per pickup), No Quarterly X X X X X H E-Waste (All a-waste put out on curbside, same schedule as Bulky Items) X X X X J Anytime Bulky Item with E-Waste, Call within 24 hours (for abandoned bulky items) X X 5-Year Monthly Cost per Household $12.44 $14.56 $14.66 $15.28 $16.23 SELL $16.48 Incremental Costs $2.12 $2.22 $2.84 $3.79 $4.04 7-Year Monthly Cost per Household $12.44 $14.27 $14.37 $14.99 $15.66 $15.89 Incremental Costs $1.83 $1.93 $2.55 $3.22 $3.45 10-Year Monthly Cost per Household $12.44 $14.06 $14.16 $14.78 $15.24 $15.53 Incremental Costs $1.62 $1.72 $2.34 $2.80 $3.09 0