HomeMy WebLinkAbout1991-08-06; City Council; 11286; REFUSE COLLECTION RATE INCREASE AND CONTRACT AMENDMENTSr
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MTG.A&LfXi& REFUSE COLLECTION RATE INCREASE CITY An
CITY MG OEPT. U&M AND CONTRACT AMENDMENTS
RECOMMENDED ACTION:
1. Approve Resolution No. 4 1-263 authorizing an increase in the Residential
and Commercial Refuse Rates and the establishment of an AB 939 Fee of
$.11 per residential refuse customer and a proportional AB 939 Fee for
commercial customers.
Approve Resolution No. 91-25 y authorizing the Mayor to execute the
proposed Refuse and Recyclables Collection Contract which includes the
establishment of a Franchise Fee.
2.
ITEM EXPLANATION:
In recent months the County Board of Supervisors has taken several actions
which will increase the cost of refuse and recyclables collection services in the
City of Carlsbad. The most significant action having an immediate impact on
refuse collection service costs, was the increase in the landfill tipping fee from
$18/ton to $23/ton. Additionally, the Board acted to impose a ban on landfilling
of recyclables, thus mandating recycling. These two issues and their impact on
costs as well as several other solid waste issues are detailed in Attachment A,
"Solid Waste Issues", and summarized below. The remaining issues encompass
Refuse Collection Service Fees, Franchise Fees, Refuse Contract Amendments,
Mandatory Recycling and Household Hazardous Waste Collection.
Refuse Collection Fee:
The County of San Diego increased landfill tipping fees from $18/ton to $23/ton,
effective July 1, 1991. Coast Waste Management, Inc. (CWM), the City's refuse
collection contractor, requested a rate increase of $.6O/m0 for single family
residential refuse customers. However, staffs evaluation supports an increase of
$.56/mo for single family customers which would increase the rate from
$9.60/mo to $10.16 (6%). The commercial rate increases requested by CWM
commercial rate increases, as requested. In reviewing the commercial rate
increases, staff and CWM agreed to eliminate the $l/bin recycling rate until a
complete analysis of the commercial recycling program can be accomplished.
Additionally, a 2% Service Fee which CWM has paid to the City for contract
administration and billing has been eliminated. To illustrate the net increase,
one bin serviced once per week would increase to $60.78. These rates compare
favorably to those in other cities in the county (see Exhibit 5). An additional
modification to the rate has been made to reflect an AB 939 Service Fee, the
details of which are addressed in Attachment A.
vary according to type of service provided, Staff's evaluation substantiates the
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Additional Contract Provisions:
Franchise Fee: Attachment A expands on the concept of a Franchise Fee and its proposed
implementation. The Franchise Fee, as proposed by staff, would be initially implemented
at the rate of 2.5% of total gross receipts. Total gross receipts include all refuse collection
and recycling revenues. Each year on the anniversary of the new agreement, the fee would
be increased at the rate of .5% per year to a maximum of 7.5%. Although total gross
receipts are unknown at this time, the minimum projected revenue for Fiscal Year 1991-92
is $125,000. CWM has agreed to absorb the initial Franchise Fee, without a rate increase.
The City Council has the discretion of establishing the franchise fee at a level different than
recommended, however, st& belleves that the 7.5% maimurn is appropAate.
Billing - Service Fee: Under the existing Refuse Contract, CWM pays the City a sum of
money equal to 2% of total gross refuse collection receipts to offset the cost of billing and
administrative services performed by the City for CWM. If the Franchise and AB 939 Fees
are approved, staff proposes to restructure the Service Fee concept by implementing an
Administrative Fee which would require CWM to pay only the City's actual billing costs.
This will allow the City to recover its actual costs related to billing and CWM is assured
that it is paying only for services received.
AB 939 Service Fee: Although the implementation of an AB 939 fee would likely be
considered when the Source Reduction and Recycling Element (SRR Element) is approved
in January, 1992, the establishment of an AB 939 fee at this time would address the
current impact to the General Fund. The General Fund will potentially absorb an estimated
$27,000, (the details of which are included in Attachment A), for solid waste activities
during the first six months of the 1991-92 fiscal year. Additionally, implementation of the
recommendations in the City's SRR Element, staff support for Joint Powers Agency efforts,
household hazardous waste programs and the mandatory recycling program will have a
significant impact on existing resources.
The costs of these efforts as well as other solid waste costs should be borne by the Solid
Waste Enterprise Fund through fees and charges as indicated in Council Policy #46, Solid
Waste Management. Estimates for expenditures during the remaining six months of the
fiscal year will probably equal or exceed the projection for the first six months. It should
also be noted that any revenues in excess of actual expenditures will offset a portion of the
existing staff costs presently borne by the General Fund. Thus, staff proposes a $.11 AB
939 fee, which would be effective to August 1, thus, the residential refuse rate would be
increased to $10.27. Commercial rates will also be increased proportionally to reflect the
AB 939 Service Fee. Total estimated revenue from this fee would be $54,200 for fiscal
year 1991-92. This rate would be re-evaluated annually as part of the City's fee review process.
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The additional staff required to plan and implement AB 939, mandatory recycling and other
staff support issues will be addressed at the time the mandatory recycling program is
presented to the City Council for consideration.
Rate Index: The City and the Contractor have agreed to obtain the services of a consultant
comprehensive rate analysis criteria which can be used for evaluation of future rate
increases. Upon completion of the study staff will return to the City Council for adoption
of the index.
Special Collections: A provision has been added to the contract to require the Contractor
to collect large items (i.e. discarded appliances, furniture), free of charge for residential
customers. The specifics of the service are detailed in Attachment A.
Mandatory Recycling: Mandatory recycling was approved by the Board of Supervisors on
May 28, 1991. As approved, the North County area using the San Marcos landfill will be
required to implement their recycling in accordance with the following schedule:
for the development of a rate index study. The purpose of the study is to develop a
- SINGLE FAMILY RESIDENTIAL
- YARD WASTE
- COMMERCIAL JULY 1, 1992
- INDUSTRIAL OCTOBER 1, 1992
AUGUST 1, 1991
JANUARY 1, 1992
- MULTI-FAMILY RESIDENTIAL JULY 1,1992
A proposed mandatory recycling program, including staff impact, will be presented for City
Council consideration in August, 1991.
Yard Waste Collection: The County mandatory recycling ordinance requires cities in the
North County to implement yard waste collection no later than January 1, 1992. Staff is
currently working with CWM to develop a program design and implementation schedule
to meet this new deadline. Staff will incorporate a proposal for a yard waste collection
service fee when the mandatory recycling ordinance is presented to the City Council for
consideration.
In summary, the action items proposed herein are as follows:
1.
2.
3.
4.
Approval of a residential refuse rate of 6% or $9.60 to $10.16.
Approval of commercial refuse increases as specified in Resolution No.
Approval of an AB 939 Service Fee of $.11 per residential refuse customer, which
increases the rate from $10.16 to $10.27.
Approval of an AB 939 Service Fee of 1.1% per commercial bin.
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5.
6.
Approval of a Refuse Contract provision to assess an Administrative Fee to the contractor for the City's actual billing costs.
Approval of a Refuse Contract provision to establish a contractor's Franchise Fee in the amount of 2.5% the first year, which would increase .5% per year to a
maximum of 7.5%.
Approval of a Refuse Contract provision to establish provisions for special
collections.
Authorization to appropriate an amount not to exceed $7,500 from the Solid Waste
Enterprise Fund for the City's share of the costs to develop a comprehensive rate
index.
7.
8.
FISCAL, IMPACT:
The adoption of the proposed rates increase the single family residential refuse and
recyclables collection rate from $9.60/mo to $10.27/mo ($.56 for tipping fee increase and
$.I1 for AB 939 solid waste operations); the commercial rate increases vary from 4,25%
to 8.59%, depending on level of service. These rate increases compare favorably to other
cities costs for similar service. The establishment of a Franchise Fee results in a revenue
increase to the General Fund. The minimum revenue projected for fiscal year 1991-92 is
$125,000. The establishment of an Administrative Fee results in a pass through of the
City's refuse billing costs.
EXHIBITS: A. 50L'iJ Lz/hSte TSs(2e3
1.
2.
3.
4.
5.
6.
Resolution No.ql.d.5 3 authorizing an increase in the Residential and Commercial
Refuse Rates and the establishment of an AI3 939 Fee.
Resolution No.9/-25 '/ authorizing the Mayor to execute the Refuse and Recycling
Contract as proposed.
Coast Waste Management Rate Increase Request.
Proposed Refuse and Recyclables Collection Contract.
Summary of Refuse Collection Rates for cities.
Council Policy #46, Solid Waste Management.
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AITACHMENT A
SOLID WASTE ISSUES
The solid waste management arena is undergoing numerous changes in California. Not
only are we witnessing transformations in the handling and disposal of solid waste, we are
also seeing unprecedented rate increases for the management and disposal of solid waste.
Additionally, new service fees are being instituted to cover the cost of recycling programs.
The impact of these changes, as well as staffs recommendations are detailed below.
Refuse Collection Fee:
On March 13, 1990, the City Council approved a new contract for Refuse Collection
services between the City of Carlsbad (City) and Coast Waste Management, Inc. (CWM).
One of the provisions of the contract was authorization to implement a $1 .OO per customer
rate increase for the recycling collection service. The contract also included a provision
allowing the CWM to submit a request for a rate increase due to "Unusual Cost Increases".
On August 7, 1990, the City Council reviewed a request by the CWM to consider a rate
increase, pursuant to Section 6 "Unusual Cost Increases", to pass through the County's
tipping fee increases to the rate payer. As a result the residential collection rate is
presently $9.60, including recycling.
In April, 1991, the County Board of Supervisors increased landfill tipping fees from
$18/ton to $23/ton, an increase of 28%. CWM, on May 17, 1991, requested a rate
increase to pass through the increased cost to customers. The requested increases,
$.6O/mo (6.3%) for single family residential refuse customers and $4.70/bin (8.1%) (one
bin serviced once per week) for commercial customers were evaluated by staff. Staff finds
that the requested single family rate increase of $.6O/mo is not fully justified. Instead,
staff recommends an increase of $.56/mo as a more equitable increase. Staff also
determined that the requested commercial rate increases were justified and recommended.
on commercial accounts, should be eliminated until the multi-family and commercial
recycling programs are fully implemented and the costs are more fully examined. Analysis
of the commercial multi-family recycling program will be completed by July 1, 1992. In
the interim, staff anticipates receipt of a $65,000 County recycling grant to purchase
recycling bins, which will offset CWM multi family and commercial program costs.
Additionally, elimination of the 2% Service Fee allow a corresponding reduction in
commercial rates.
The proposed rate raises the residential rate to $10.16, a $.56 increase over the current
rate. The commercial rate raises the fee to $60.78 for one bin at once per week pick-up.
Additional adjustments has been made to the commercial rate to reflect the deletion of the
2% billing service costs and implementation of an AB 939 Fee, these issues are addressed
further in this attachment. Thus, the net proposed commercial rate is $61.45 for one bin
serviced once per week.
However, staff and CWM have agreed that the $l/bin recycling charge, presently levied
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ATTACHMENT A
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Franchise Fee:
The existing Rehse Contract does not contain a provkion for a Contractor Franchise Fet
However, in consideration of the exclusive right, duty and privilege to collect, remove an
dispose of all refuse and recyclables generated within the City, staff proposes that th
Contractor pay to the City a percentage of gross sums collected each month. Assuming
Franchise Fee is appropriate, two considerations are addressed: 1) The maximur
percentage or amount of the Franchise Fee; and 2) The method or schedule fc
implementing the Franchise Fee.
The first consideration involves the percentage at which the Franchise Fee will E
established. Franchise Fees throughout the County range from 2% to 10%. The Cit
Council has the discretion of establishing the Fee at any percentage. However, staff fee
that a 5 to 10% range would be appropriate, especially if the Fee is to be phased-in. Thu
staff proposes to establish a maximum Franchise Fee at 7.5% of total gross receipts.
This leads to the second consideration; what schedule or method should be used t
implement the Fee? A key consideration in determining the method or schedule fc
implementing the Fee is the impact on the rate payers. The goal would be to minimize th
impact. With this in mind, the desired maximum Fee can be achieved by scheduling tl-
increase over a given number of years. For example, staff proposes a maximum fee (
7.5%, which may be attained as follows:
1.
2.
Base % of 2.5% + Annual O/o increase of .5% x 10 years = 7.5%
Base % of 2.5% + Annual % increase of 1.0% x 5 years = 7.5%
Each 5% annual increase would result in a corresponding monetary increase to residenti
rate payers, of approximately fix cents ($.OS) per month, based on proposed rate
Correspondingly, a 1% annual increase would be approximately ten cents ($.lo) pt
month. Given that potential refuse rate increases will be required in future years, optic
#1 reduces the overall cost increase to rate payers, but takes the longest, 10 years, to full
implement.
As proposed, each year on the anniversary of the new agreement, the fee would I-
increased at the rate of S% per year to a maximum of 7.5%. The proposed fee will I:
based on total gross receipts. Although total gross receipts are unknown at this time, tl:
minimum projected revenue for the 1991-92 Fiscal Year is $125,000. The City's refu:
collection contractor, Coast Waste Management, has agreed to accept the initial 2.5'
Franchise Fee without a corresponding increase in rates.
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ATTACHMENT A
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AB 939:
Given the adoption of the California Integrated Waste Management Act of 1989 ("Act"),
several new provisions related to the solid waste disposal and administration were
incorporated into the contract. The Act requires the City to assume major new
responsibilities for solid waste planning. Under the "Actff, cities and the County are
required to develop and approve their own "solid waste plans", known as Source Reduction
and Recycling Elements (SRR Element). Thus, all cities and the County are required to
cooperate in finding mutually acceptable, environmentally safe and financially feasible
programs and facilities to meet the solid waste disposal needs of the region. Toward this
objective, the contract provides for the implementation of residential and commercial
recycling programs.
The SRR Element will set forth the combination of programs to divert the maximum
amount of waste feasible from landfilling. The SRR Element must include an
implementation schedule which shows how the each jurisdiction will divert 25% of all solid
waste from landfill or transformation facilities by January 1, 1995, through source
reduction, recycling, and composting activities. The City's SRR Element will recommend
a combination of programs to divert the maximum amount of waste feasible from
landfilling. The services of a consultant have been obtained to prepare the SRR Element.
The deadline for submittal of the SRR Element to the State is January 1, 1992.
AB 939 Service Fee:
AB 939 requires jurisdictions to demonstrate a funding source, or sources to pay for
preparing, adopting and implementing the element or plan. A key provision of AB 939 is
that it enables jurisdictions to impose fees to pay these costs. Jurisdictions may directly
collect the fees or may arrange for the fees to be collected by the jurisdiction's solid waste
hauler. In recognition of these new services and cost impacts, on January 8, 1991, the City
Council authorized the establishment of a Solid Waste Enterprise Fund (Fund). The AB
939 Service Fee is a potential revenue source to the Fund which then provides funding for
AB 939 administration and program costs. Moreover, the Council adopted Council Policy
#46 to guide staff in management of the City's solid waste program. Council Policy #46
provides that solid waste related costs should be funded through fees and charges levied
on users or generators.
To date, the administration of the solid waste programs which have been implemented and
will ultimately assist the City in meeting the AB 939 requirements, have been absorbed by
the General Fund. In the absence of an AB 939 Fee, the General Fund will continue to
absorb new and on-going program costs. For example, staff is preparing for the City's first
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ATTACHMENT A
Page 4
Household Hazardous Waste Collection event. The event is scheduled on August 10 and
is the first of four annual events. Although the County is providing the service at no cost
to the City, the City will incur cost associated with the public information aspects of the
program. Additionally, in the absence of a fee, the yard waste collection program costs will
also be absorbed by the General Fund.
Although the implementation of an AB 939 fee would likely be considered when the SRR
Elemenl is approved in January, 1992, the establishment of an AB 939 fee at this time
would address the current impact to the General Fund. Estimated cost factors which are
the General Fund will potentially absorb during the next six months are:
1. Solid waste alternatives study: 14,000
2. Household Hazardous Waste Collection: 3,000
4. Rate Index Study: 7,500
Total $26,500
These estimated costs do not include staff time associated with developing the AB 939
Plan, Plan implementation, mandatory recycling, joint powers agency liaison and support,
litigation support and other solid waste management operational matters.
Given the above, staff proposes the implementation of a nominal fee to each refuse
customer to offset the impact to the General Fund. The proposed fee $.11 would
implemented in conjunction with refuse rate increases proposed herein. Thus, the total
residential refuse rate would be increased to $10.27; commercial rates would increase
proportionately. Total projected revenue from this fee would be $54,200 for fiscal year
1991-92. This Fee will be evaluated annually as a part of the City's annual fee review
process.
Billing Service Fee:
Currently the City provides billing service for most of the Contractor's residential refuse
customers. The refuse and recycling billing is combined with the City's water and sewer
billing. The Contractor pays a 'Service Fee' to offset the costs incurred by the City's for the
service. The Service Fee represents a sum of money equal to 2% of total gross refuse
collection receipts collected.
If the Franchise and AB 939 Fees are approved, staff recommends that the 2% Service Fee
be converted to a reimbursement of the City's actual costs for billing services. In this way,
the City is assured of full reimbursement of costs incurred and the Contractor is assured
of only paying for services received.
3. Yard Waste Collection: 2,000
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ATTACHMENT A
Page 5
Rate Index:
The City and the Contractor have agreed to obtain the services of a consultant for the
development of a rate index study. The purpose of the study is to develop a comprehensive
rate analysis criteria which can be used for evaluation of future rate increases. The cost
of the consultant services will be shared equally by the City and the Contractor, however,
the City's portion of the costs shall not exceed $7,500. City staff will prepare and issue the
Request for Proposals for consultant services. Upon completion of the study staff will
return to the City Council for adoption of the index.
Special Collections:
A provision has been added to the contract to require the Contractor to collect large items
(i.e. discarded appliances, furniture), free of charge for residential customers. One day per
quarter will be designated as special collection day. Additional collections requested by
customers will be on a fee basis as is the practice under the current contract.
Mandatory Recycling:
On April 9, 1991, the San Diego County Board of Supervisors directed the County Chief
Administrative Officer to prepare a mandatory recycling ordinance. On May 28, 1991, the
Mandatory Recycling Ordinance was presented to and approved by the Board of
Supervisors. As approved, the North County area using the San Marcos landfill will be
required to implement their recycling in accordance with the County's schedule.
The ordinance includes the following major elements:
1. A prohibition against disposal of designated recyclable materials with mixed
refuse at County solid waste facilities;
Designation of materials to be recycled from residential, commercial and
industrial sources; 2.
3. All collectors providing services in the unincorporated areas must provide
their customers with collection of designated recyclable in accordance with
the regional ordinance schedule;
Waste generators in the unincorporated areas of the County must store
designated recyclable separately from solid waste for pick-up.
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ATTACHMENT A
Page 6
Mandatory recycling enforcement will occur at the landfills. Loads will be inspected and
those loads where recyclable materials are found will be subject to a warning for the first
three months after the above implementation dates. Following the warning period (three
months), surcharges will be charged to the hauler if recyclable materials are found in
refuse to be landfill disposed. The surcharges will begin at $25 a load and will increase
every three months by $25 until $100 is reached. Vehicles with loads from cities that have
adopted and are enforcing mandatory recycling programs satisfactory to the County
Director of Public Works, will be exempt from surcharges. Staff is preparing a mandatory
recycling ordinance for the City Council's consideration. The ordinance will incorporate
all of the elements required by the County. Additionally, the ordinance will address
enforcement provisions and proposed penalty fees. The staff report will also address
staffing requirements for implementing the program.
Yard Waste Collection:
One of the provisions of the County's mandatory recycling program is yard waste
collection. The County ordinance requires cities in the North County to implement yard
waste collection no later than January 1, 1992. Staff is currently working with CWM to
develop a program design and implementation schedule to meet this new deadline. The
cost of the services have not been fully developed at this time, however, estimates range
from $2.00 to $3.00. Staff will incorporate a proposal for a yard waste collection service
fee when the mandatory recycling ordinance is presented to the City Council for
consideration.
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- RESOLUTION NO. 91-253
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA, REVISING
THE MONTHLY REFUSE COLLECTION RATE FOR
THE CITY OF CARLSBAD
WHEREAS, the City of Carlsbad is responsible for the
provision of refuse and recyclables collection services to
promote the safety, health and general welfare of its
citizens: and
WHEREAS, the City of Carlsbad may contract for such
refuse collection services; and
WHEREAS, the City of Carlsbad has contracted with Coast
Waste Management, Inc. for refuse collection services within
the City; and
WHEREAS, Coast Waste Management, Inc. , is in the business 14
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of collecting and disposing of refuse and is now and can
continue to provide the necessary refuse collection services
to the citizens of Carlsbad; and
WHEREAS, Coast Waste Management, Inc., is in the business
of collecting and marketing recyclable goods and is now, and
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I I and bi-metal cans, glass jars and bottles, plastic P.E.T. and 1 HDPE bottles and newspapers from residential, commercial and
1 charitable organizations; and
~ WHEREAS, AB 939, the California Integrated Waste
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1 Management Act of 1989 enables jurisdictions to impose fees
for the developing, preparing, adopting and implementing the
City's Source Reduction and Recycling Element; and
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WHEREAS, - the City of Carlsbad has determined that ar
increase in refuse rates is required at this time; and
WHEREAS, CITY and CONTRACTOR agree that this Contract
supersedes and rescinds that Refuse Collection Services
Agreement between the parties dated March 16 , 1990,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
city of Carlsbad as follows:
1. That the above recitations are true and correct.
2. That the rate for once-a-week co,lection of
residential refuse and recyclables shall be $10.16
per month, an increase of $.56, including the $1.00
per month recycling service fee.
3. That the monthly rate for Special Residential
Collection Service shall be $12.32 per month, an
increase of $.56, including the $1.00 per month
recycling service fee.
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4. That the monthly residential rate for the AB 939
Service Fee shall be $.11 per refuse customer, thus
the residential refuse rate is increased to $10.27 I 11
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Service Fee shall be 1.1% above the refuse
collection rate.
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Service Fee shall be:
NUMBER OF PICKUPS PER WEEK
No. of
Bins - 1 - 2 - 3 - 4 - 5 - 6
1 61.45 104.73 148.01 191.28 234.57 277.85
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COMMERCIAL CAN STOPS -
1 x Week $18.21/Month
2 x Week 36.40/Month
3 x Week 54.61/Month
4 x Week 72.80/Month
5 x Week 91, oo/Month
7. That the monthly charge for multi-family and
commercial recycling shall be deferred pending
further rate analysis.
8. That the following rates shall apply to special
pickups of refuse:
a. The delivery charge for drag-on box service
shall be $33.00 per box.
b. The rate for all classes of drag-on boxes shall
be $122*91, plus landfill disposal fees.
c. Demurrage charges on drag-on boxes shall be
$3.00 per day in the event the drag-on box is l5
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not dumped a minimum of one time a week.
Customers requiring more than one dump from a
drag-on box shall receive a refund of the
original $33.00 delivery fee, this refund may be
in the form of a credit against the customers
account with the refuse collector.
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9, That the rate for special haul bins (3 yd. bins I
which require special collection or are rented for
7 days or less) shall be as follows:
a. 1 Bin delivered same trip: $ 61.00
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b. 2 Bins delivered same trip: $111.00
I c. 3 Bins delivered same trip: $151.00 I i i I
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10. _That the commercial rates established hereby shall
be effective August 1, 1991.
That the residential rates established hereby shall
be effective August 1, 1991.
City and Coast Waste Management shall share equally
in the cost of consultant services for the
preparation of a Rate Index Study; however, City's
costs shall not exceed $7,500.
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13. Should the City or Coast Waste Management receive
any loans or grants of funds which would offset all
or a portion of the costs of the recyclables
collection program, the monthly rates for refuse
and recyclables collection shall be reduced per
approval of the City of Carlsbad.
14. That the rates and charges established by this
Resolution shall on their effective day supersede
the rates previously established.
PASSED, APPROVED AND ADOPTED at a regular meeting of the
City Council of the City of Carlsbad, California, held on the
, 1991, and by the following vote, 1 6th day of August
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to wit:
AYES: Council Members Lewis, Kulchin, Larson and Stanton
NOES: None
ABSENT: Council Member Nygaard
1 ATTEST: kPE-
ALETHA L. RAUTENKRANZ, City Clkrk
(SEAL)
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RESOLUTION NO, 91-254
A RESOLUTION OF THE CITY COUNCIL OF THE
THE EXECUTION OF THE REFUSE AND RECYCLING
COLLECTION CONTRACT
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CITY OF CARLSBAD, CALIFORNIA, APPROVING
WHEREAS, the City of Carlsbad is responsible for th
provision of refuse and recyclables collection services t
promote the safety, health and general welfare of it
citizens; and
WHEREAS, the city of Carlsbad may contract for such refus
collection services; and
WHEREAS, the City of Carlsbad desires to continu
contracting with Coast Waste Management, Inc. for refus
collection services; and
WHEREAS, all provisions and specifications of the servic
have been reviewed and negotiated with Coast Waste Management
Inc.
NOW, THEREFORE, BE IT RESOLVED by the City Council of th
City of Carlsbad as follows:
1. That the above recitations are true and correct.
2. That all provisions in the Refuse and Recyclin
Collection Contract are hereby approved.
3. That the Mayor of the City of Carlsbad is heret
authorized to execute the Refuse and Recyclir
Collection Contract.
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a e
PASSED, APPROVED AND ADOPTED at a regular meeting of thc
City Council of the City of Carlsbad, California, held on thc
6th day of August I 1991, and by the following vote, tl
wit:
AYES: Council Members Lewis, Kulchin, Larson and Stanton
NOES: None
ABSENT: Council Member Nygaard
ATTEST:
ALETHA L. RAUTENKRANZ, City Cl$rk
(SEAL)
2- 6?-
EXHL3IT 2 a 0 'TmT COAST WASTE MANAGEMENT, INC.
5960 EL CAMiNO REAL. P.0. BOX 947. CARLSBAD. CALIFORNIA 92018-0947 PHONE (61 9) 78-941 2
(61 9) 452-981 0
FAX: (61 9) 931 -021 9
*
May 17, 1991
Ralph W. Anderson
Director of Utilities & Maintenance
City of Carlsbad I 2075 Las Palmar Drive
Carlsbad, CCS 92009-1519
RE: County of San Diego Landfill Rate Increase
Effective July I, 1.991
Dear Ralph:
The following letter and submittals have been prepared for you
and your staff to review proposing rate adjustments to the
refuse service rates in the City of Carlsbad. Our request is due
to the County of San Diego adopting increases to the disposal
site fees charged at all County Landfills effective July 1, 1991.
The County increase changes the rate from 918.00 to 823.00, a
27.7% percent increase in the per ton charge.
The proposed rate adjustments are only to cover the increased
landfill disposal costs imposed by the County of San Diego and
have no general rate increases in the adjustment.
In 1990 County Board of Supervisors resolution changed the method
of charging for all compacted loads of trash to be paid by
weight. the' 1991 resolution now includes having non compacted
loads also charged by weight. This will change the roll off containers dumped at County landfills to be charged by the weight
of the material disposed.
-To access the impact of the change during the month of Flpril, our
company conducted a weight study of our trucks to ascertain the
effect of the increase. The residential and commercial customers
will have the following adjustments due to the County disposal
site fee increase:
A SATISFIED CUSTOMER IS OUR FIRST CONSIDERATION
0 e
PAGE 2
RJS I DE NTI& SERVlCE To determine the new disposal site fee we conducted over a foc
week period a weight study of the loads generated in the City
Carlsbad. The four week total was divided by four to arrive t
an average weekly volume. April the most current complete mor
was used as a determining month.
The rate below is calculated using the new rate Of 623.00/tan
versus the prior rate used in 1990 when the collection charge
last adjusted.
April average weekly trash volume = 912,772
912772 X 52 weeks / 12 months / 2000 lbs =
1977.67 TONS PER MONTH
1
1990 County of San Diego Disposal Site Fee 818.00/ton
1991 County of San Diego Disposal Site Fee 323.00/ton
1977.67 tons X $23.00/ton = 845,486.41
LESS: 1977.67 tons X 318.00/ton = 835,598.06
NET DSF INCREASE $ 9,888.35
69888.35 / 17218 residents =
$.S74 + 2% Franchise fee =
1.585 cent .increase per month
----..----
Rate rounded to nearest .OS cents = -60 per household
PRIOR RESIDENTIAL RATE PER MONTH INCLUDING RECYCLING 39.60
PROPOSED I"THLY RESIDENTIhL REFUSE RATE INCLUDING RECYCLING
%IO I20 .
- -
a 0
PAGE 3
COMMERC I AC 9ER VICE Weights for the commercial service trucks were accessed on a
which we rounded to 10.00 tons per load. The average number of
bins per load was 46 bins. The calculation below shows the
adjustment from the present load charge with the new rate as
adopted by the County.
truck load basis, Their average load weight totaled 9.85 tons
10.00 tons per truck load x 818.00 = $180.00
10.00 tons per truck load x 823.00 = 8230.00
1991 landfill fee per truck 6230.00
NET INCREFISE PER LOAD 6 50.00
Less: 1990 landfill fee per truck Lao. 00
1 $50.00 increase per load / 46 bins = 1.087 weekly - increase -
61.087 x 4.33 weeks = $ 4.70 adjustment per bin dump
PRIOR RATE FOR 1 X WEEK SERVICE INCLUDING RECVCLING CHARGE
858.20
PROPOSED RATE FOR 1 X WEEK BIN SERVICE INCLUDING RECYCLING
CHARGE $62.90
Qs previously discussed we would will drop the 81.00
per bin charge for the multi-tenant residential units
which have multi-tenant recycling. These complexes
will be charged 91.00 per residential unit effective
July I, 1991. Those complexes without recycling servics
will remain having the 91.00 per bin until they are
converted to recycling at which time they will be
adjusted to the per unit charge.
These are our proposed rates for your review and analysis. We
request far the Council to approve the adjustments to be
effective July 1, 1991 when the rates will be increased by
the County of San Diego.
If you have any questions, please give me a call at your earliesl
convenience .
Sincerely,
&d/-- Conrad B. Pawelski
Vice PresidenWGeneral Manager
TYPE OF SERVICE CURRENT
RATE
RESMNT)ALRAiEsW~ Rates)
(includes $1 -00 for curbside recycling)
CURB $9.60
BACKYARD, SPEC1 AL RESIDENTi AL $1 1.76
1 X WEEK
2 X WEEK $35.28
COillUERCtAL CAN RaTEsmonthtv Rates) - $1 8.1 s
3 X WEEK $52.42
4 X WEEK $69.55
5 X WEEK $86.69
1 X WEEK $58.20
2 X WEEK $97.07
3 X WEEK $1 35.95
4 X WEEN $1 74.81
5 X WEEK $2l3.69
6 X WEEK $25256
COUYERCIAL 3C4hkYardBimz Monthhr Rates
ADJUSTMENT PROPOSED
RATE
$0.60 $1 0.20
I $0.60 $1 2.36
e
$1 -20 $1 9.35
$2.40 $37.68
$3.60 $KO2
$4.80 $74.35
$6.00 $92.69
$4.70 $62.90
$9.40 $1 06.47
$1 4.1 0 $1 50.05
$1 8.80 $1 93.61
$23.50 $237.1 5
$28.20 $280.71
ColdMERCIAL Rou OFF SDWICE
BOX SIZES A, 8, C, & D (on call)
Plus disposal site fee charged
on weight of material disposed
@$23.00hon
$1 22.32
iDSF
Delivery Charge $27.50
$3.60 Demurage charge per day over 7 days
SPECIAL HAUL BINS ~CtEuQed pe r dtlm~]
3 cu. yd. Bins which require special
coiiection or rented for 7 days or iess
1 bin delivered same trip $55.00
$1 00.00
$1 35.00
-
2 bins delivered per same trip
3 bins delivered same trip
$1 22.32
+DSF
$1 2.00 $39.50
$3.00
I
-
$5.00 $60.00
$1 0.00 $1 10.00
$1 5.00 $1 50.00
-1: .! , Ex i: ! tj ;T e e i i ;
*
REFUSE AND RECYCLABLES COLLECTION SERVICES
CONTRACT
JULY 1991
r) 8
TABLE OF CONTENTS 4.
SECTION 1.0 WASTE COLLECTION SERVICES
1.1 Delivery of Services ............... 2
1.2 Frequency of Collection .............. 2 1.3 Hours of Collection ................ 3
1.4 Holidays ..................... 3
1.5 Disposal of Solid Waste .............. 3
1.6 Failure to Collect Refuse or Recycling Materials . 3
1.7 Hardship Cases .................. 3
1.8 Workerlike Performance .............. 4
1.9 Collection Equipment ............... 4
1.10 Specifications .................. 4
1.11 Vehicle Identification ............... 4
1.12 Cleaning ..................... 5
1.13 Maintenance .................... 5
SECTION 2.0 RECYCLING COLLECTION
2.1 Delivery of Services ............... 5 2.2 Marketing of Recyclables ............. 7
SECTION 3.0 ADDITIONAL SERVICES
3.1 City Services ................... 7
3.2 Special Collections ................ 8
SECTION 4.0 COLLECTION SERVICES
4.1 Billing ...................... 8
SECTION 5.0 REPORTING REQUIREMENTS
5.1 Books. Records and Accounting ........... 9
5.2 AB939Records .................. 9
5.3 Right to Inspect ................. 9
5.4 Audit ....................... 10
5.5 Customer Relations Log .............. 10
5.6 Quarterly Reports ................. 10
5.7 City Inspections ................. 11
SECTION 6.0 SERVICE RATES
6.1 Rates ....................... 11
6.2 Unusual Cost Increases .............. 12
6.3 RateIndex .................... 12
6.4 Special Services ................. 12
SECTION 7.0 CONTRACTOR FEES
7.1 Administrative Fee ................ 12
7.2 Franchise Fee ................... 13
7.3 AB 939 Service Fee ................ 13
0 0
Page 2 FABLE OF CONTENTS
SECTION 8.0 TERM OF CONTRACT
8.1 Term ....................... 13
SECTION 9.0 STATUTES. ORDINANCES AND RESOLUTIONS
9.1 City Regulations ................. 14
9.2 Immigration Reform and Control Act ........ 14
9.3 Provisions Required by Law Deemed Inserted .... 15
SECTION 10 INDEMNITY. INSURANCE AND BONDS
10.1 Indemnity ..................... 15
10.2 Insurance ..................... 16
10.3 Fidelity Bond ................... 17
10e4 Performance Bond ................. 17
SECTION 11.0 PERMITS AND LICENSES
11.1 Requirements ................... 17
SECTION 12.0 ASSIGNMENT
12.1 Sub-contracting .................. 17
12.2 Sale of Ownership ................. 17
12.3 Delivery of Notices ................ 18
SECTION 13.0 EXCLUSIVENESS OF CONTRACT
13.1 Exclusivity .................... 18
13.2 Authorized Disposal ................ 18
SECTION 14.0 DEFAULT BY CONTRACTOR
14.1 Default ...................... 19
SECTION 15.0 STRIKES
15.1 City Rights .................... 19
15.2 Reimbursement ................... 19
SECTION 16.0 REMEDIES
16.1 Arbitration .................... 19
16.2 Cost of Arbitration ................ 20
16.3 Attorney Fees ................... 20
SECTION 17.0 VERBAL AGREEMENT OR CONVERSATION
17.1 Nullification ................... 20
a rl)
REFUSE AND RECYCLABLES COLLECTION SERVICES
CONTRACT
+1
This Contract entered into this F day of
1991 by and between the CITY of Carlsbad, a municipal corporation
of the State of California, hereinafter referred to as "CITY11 and
Coast waste Management, Incorporated, aka Liberty Recycling, a
division thereof, hereinafter referred to as llCONTRACTOR1l.
WITNESSETH:
WHEREAS, CITY is responsible for the provision of refuse and
recyclables collection services to promote the safety, health and
general welfare of its citizens; and
WHEREAS, CITY may contract for such refuse collection
services; and
WHEREAS, CONTRACTOR is in the business of collecting and
disposing of refuse and is now and can continue to provide the
necessary refuse collection services to the citizens of Carlsbad;
and
WHEREAS, CONTRACTOR is in the business of collecting and
marketing recyclable goods and is now, and can continue to provide
the necessary collection of aluminum and bi-metal cans, glass jars
and bottles, plastic P.E.T. and HDPE bottles and newspapers from
residential, commercial and charitable organizations; and
WHEREAS, CONTRACTOR is willing and able to add services to
provide for collection of recyclable goods from residential,
commercial, industrial and governmental buildings; and
e 0
WHEREAS, CITY wishes to contract with CONTRACTOR for such
refuse collection and recycling services; and
WHEREAS, CITY and CONTRACTOR agree that this Contract
supersedes and rescinds that Refuse Collection Services Agreement
between the parties dated March 16, 1990.
THE PARTIES hereto do mutually covenant and agree as
f 01 lows :
SECTION 1.0 WASTE COLLECTION SERVICES
1.1 DELIVERY OF SERVICES: CONTRACTOR as an independent
contractor and not an employee or agent of CITY, shall furnish all
labor, equipment and materials for and shall make available to all
persons residing or doing business at locations within the CITY
limits, as it presently exists or as it exists in the future, the
service of collection and disposal of refuse and collection and
marketing of recyclable goods, subject to the terms and conditions
of this Contract.
1.2 FREQUENCY OF COLLECTION: CONTRACTOR shall collect
refuse and recyclables at least once per week from each residential
unit. Refuse and recyclables shall be collected from residential
customers on the same day. The collection schedule, and any changes
thereto shall be submitted to the Utilities and Maintenance
Director. Frequency of construction site, governmental, industrial
and commercial refuse and recyclables collection shall be as agreed
upon by the CONTRACTOR and the individual customers.
2
0 0
1.3 HOURS OF COLLECTION: CONTRACTOR shall make refuse and
recycling collections in residential areas after 7:OO a.m and
before sunset.
1.4 HOLIDAYS: The following are designated as holidays
for the purposes of this Contract:
New Year's Day Labor Day
Memorial Day Thanksgiving
Independence Day Christmas Day
(Customers scheduled for collectiononaholiday shall
be serviced On the following day and the balance of the schedule
shall be adjusted accordingly.)
1.5 DISPOSAL OF SOLID WASTE: CONTRACTOR shall dispose of
all refuse in a legal manner at a sanitary landfill, transfer
station or other facility, at the direction of CITY.
1.6 FAILURE TO COLLECT REFUSE OR RECYCLING MATERIALS:
Should CONTRACTOR fail to collect and dispose of refuse and
recyclables set out for collection as agreed upon herein and fail
to correct such situation within twenty-four (24) hours after
receipt of notice thereof, CITY may collect and dispose of the
refuse or recyclables and CONTRACTOR shall be liable for any and
all expenses incurred.
1.7 HARDSHIP CASES : CITY reserves the power, by
appropriate ordinance or resolution, together with administrative
regulations, to provide for the omission of refuse collection and
recycling services or fees to certain customers in hardship
3
0 e
situations. CITY shall have sole authority to determine the
circumstances which constitute hardship.
1.8 WORKERLIKE PERFORMANCE: CONTRACTOR shall perform all
work in a responsible, responsive, sanitary and lawful manner.
CONTRACTOR will be required to submit verification that employees
have the right to work in the United States of America. CONTRACTOR
shall, at all times, provide competent, sober, courteous uniformed
personnel, and efficient, clean equipment. All collection
personnel shall wear an identification tag on their exterior
clothing. The tag shall include CONTRACTOR'S name and the employee
name. CONTRACTOR agrees to remove any employee for reasonable
cause at the request of CITY.
1.9 COLLECTION EQUIPMENT: CONTRACTOR shall provide a
fleet of vehicles sufficient in number and capacity to efficiently
perform the work required by this Contract. CONTRACTOR shall have
available on collection days sufficient back-up vehicles for each
type of collection vehicle used to respond to complaints and
emergencies.
1.10 SPECIFICATIONS: All vehicles used by CONTRACTOR in
providing services shall be registered with the California
Department of Motor Vehicles. All such vehicles shall have metal
watertight bodies designed to prevent leakage, spillage or
overflow.
1.11 VEHICLE IDENTIFICATION: CONTRACTOR'S name, local
telephone number shall be prominently displayed on the sides of
each refuse collection vehicle, drop body and collection bin in
4
0 0
letters at least four inches high. Recycling collection vehicles,
bins, and other equipment shall be identified with a CITY approved
logo and affixed in accordance with CITY specifications.
1.12 CLEANING: All vehicles shall be cleaned and washed
at least Once per week and will be maintained in an efficient,
sanitary condition at all times.
1.13 MAINTENANCE: All refuse and recycling collection
No on- vehicles must be parked overnight on CONTRACTOR'S premises.
street overnight parking shall be permitted.
SECTION 2.0 RECYCLING COLLECTION
2.1 DELIVERY OF SERVICES: In addition to and separate
from the service of weekly collection and disposal of refuse,
CONTRACTOR agrees to provide residential recyclables collection and
marketing S~~V<C~S subject to the terms and conditions of the
applicable sections of this Contract,
A. CONTRACTOR agrees to furnish all tools, equipment,
apparatus, facilities, labor, services and materials, including
household recyclable containers, and perform all work necessary to
operate in good and workerlike manner, all facets of a residential
recycling project delineated in this Contract. It is understood
and agreed that all said labor, services, materials, and equipment
shall be furnished and said work performed and completed by
CONTRACTOR as an independent Contractor, subject to the inspection
and approval of the CITY acting through its Utilities and
Maintenance Director or designated representative. CONTRACTOR
5
9
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Program. These bins are to be removed by CONTRACTOR within three
(3) working days after the end of the program.
3.2 SPECIAL COLLECTIONS: CONTRACTOR shall provide
services for special collections ( i. e. discarded household items
which cannot be accommodated in the regular residential refuse
collection service), free of charge to customers. One day per
quarter will be designated as special collection day. Additional
collections requested by customers will be on a fee basis.
SECTION 4.0 COLLECTION SERVICES
4.1 BILLING: CITY shall provide billing services and
normal collection for both the refuse and recycling services for
residential customers who are billed for sewer and/or water
services by CITY. All other customers shall be billed by
CONTRACTOR. With thirty (30) days written notice to CONTRACTOR,
CITY may determine to have either CITY or CONTRACTOR bill any or
all of the refuse and/or recycling customers. Billing shall be
administered in accordance with the billing system and at such
frequency for billing established by Carlsbad forthe collection of
water and sewer charges. Provided, however, that Carlsbad shall
have the right to refuse to handle billings and collections with
respect to any accounts which, in the opinion of Carlsbad, would be
difficult or inconvenient to handle through its system.
A. All collections for past due accounts for refuse and
recycling services shall be the responsibility of CONTRACTOR unless
CITY assumes the entire billing and collection responsibility.
8
0 a
CITY may forward collection information to customers in the bill at
the option of CITY.
B. CITY'S billing and collection records and books shall
be open to inspection by CONTRACTOR. Copies of records shall be
provided at CONTRACTOR'S expense. CONTRACTOR'S billing and
collection records and books shall be open to inspection by CITY.
Copies of records shall be provided at CITY'S expense.
SECTION 5.0 REPORTING REQUIREMENTS
5.1 BOOKS, RECORDS AND ACCOUNTING: CONTRACTOR shall keep
true and accurate records, books and accounts of all business
conducted, money received, accounts payable and cash disbursements
by reason of its performance of its obligations herein. These
records, books and accounts shall be kept separate from any books
or accounts for the CONTRACTOR'S services and business operations
performed outside the CITY limits. Separate books and accounts
shall be maintained for the refuse collection program and the
recycling program.
5.2 AB 939 RECORDS: To assist CITY in meeting the
requirements of AB 939, the California Integrated Waste Management
Act of 1989, CONTRACTOR shall record on a daily basis the
quantities of solid waste collected. CONTRACTOR also agrees to
cooperate with CITY on waste composition studies.
5.3 RIGHT TO INSPECT: CITY shall have the right to
inspect or review the specific documents or records required
pursuant to this Contract, or any other similar records or reports
of CONTRACTOR which CITY shall deem, at its sole discretion,
9
4- e e
, necessary to evaluate annual reports, rate modifications and
CONTRACTOR'S performance.
5.4 AUDIT: CONTRACTOR shall agree and submit to audit,
as requested by CITY.
5.5 CUSTOMER RELATIONS LOG: CONTRACTOR shall maintain,
at all times, a correspondence log in which all written and verbal
communications, including complaints from customers, shall be
recorded and stored. These records shall be made available to CITY
upon request.
5.6 QUARTERLY REPORTS: CONTRACTOR shall forward to the
Utilities and Maintenance Director, a report on a quarterly basis
in January, April, July and October which will include the
following information concerning the previous three months
activities for construction site, commercial and residential refuse
and recycling collection:
A, Number of complaints listed by type of complaint;
i.e., litter, missed pickup, quality of service, etc.
B. Average number of customers served per month
categorized as to residential and commercial.
C. Average gross receipts per month, categorized as
residential and commercial refuse service, residential and
commercial bin service, curbside recycling service and recycling
buyback center.
D. Any significant problems or anticipated future
problems relating to refuse collection in CITY,
10
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E. A quarterly total of lbs./ton of recyclables
collected, by type, from residential curbsi.de collection.
F. A quarterly total of lbs/ton of recyclables collected
from all other sources, by type.
G. Total revenues derived from the sale of all recyclable
materials, by type and source.
5.7 CITY INSPECTIONS: All performance, which includes
services, materials, supplies and equipment furnished or utilized
in the performance of this Contract, and workmanship in the
performance of services shall be subject to inspection and approval
by the CITY at all times during the term of this Contract.
CONTRACTOR shall cooperate with any Inspector assigned by CITY to
permit the Inspector to determine CONTRACTORts conformity with
these specifications and the adequacy of the services being
contractually provided. All inspections by CITY shall be made in
such a manner as not to unduly interfere with CONTRACTORts
performance.
SECTION 6.0 SERVICE RATES
6.1 RATES: CONTRACTOR agrees to accept from customers as
full and complete compensation for the complete collection and
disposal of refuse, including all recyclable materials, the rates
as established from time to time by resolution of the City Council.
A. Income from recycling materials, if any, shall not,
for the purposes of this Paragraph, be considered ttCompensation for
the complete collection and disposal of refuse."
11
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6.2 UNUSUAL COST INCREASES: CITY and CONTRACTOR recognize
that from time to time certain expenses, some of which are
enumerated below, increase at rates substantially in excess of that
contemplated by the parties. CITY and CONTRACTOR further agree
that in event that any such increases should occur, CONTRACTOR may
apply to CITY for a rate increase in proportion of said unusual
expense increase, i.e. disposal site fees, fuel and labor.
6.3 RATE INDEX: CITY recognizes that rates are related
in part to the cost of doing business, including disposal site fees
set by the County of San Diego, the cost of fuel, maintenance,
salaries and insurance. Theref ore, CITY and CONTRACTOR agree to
obtain the services of a consultant for the development of a rate
index study. The cost of the consultant services will be shared
equally by CITY and CONTRACTOR, with CITY'S portion not to exceed
$7,500. CITY shall prepare and issue the Request for Proposals for
consultant services. The City Council shall have discretion in
approving or disapproving changes in the rate structure.
6.4 SPECIAL SERVICES: CITY recognizes that CONTRACTOR
must provide special or out of the ordinary services and must be
compensated accordinqly, therefore, CONTRACTOR is authorized to
provide these services and to determine the appropriate
compensation, however, all such cases shall be submitted to CITY
for approval prior to the delivery of service.
SECTION 7.0 CONTRACTOR FEES
7.1 ADMINISTRATIVE FEE: CONTRACTOR agrees to pay CITY
a sum of money equal to CITY'S actual billing costs. CITY will
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submit an invoice for these charges to CONTRACTOR on a quarterly
basis. Thereupon, CONTRACTOR must remit payment within twenty (20)
working days.
7.2 FRANCHISE FEE: In consideration of the exclusive
right, duty and privilege to collect, remove, dispose and retain
all refuse generated within the CITY, CONTRACTOR shall pay to CITY,
each month, a sum equal to two and one-half percent (2.5%) of total
gross receipts arising out of business in Carlsbad. The said sum
shall be payable not later than the 10th day of the each month
following collection of same. Thereafter, on March first of every
year, the Franchise Fee will increase -5% a year for each year the
Contract remains in force, until a maximum Franchise Fee of seven
and one-half percent (7.5%) is attained. Thereafter , CONTRACTOR
shall monthly pay CITY a Franchise Fee of seven and one-half
percent (7.5%). CONTRACTOR shall keep full, complete and proper
books, records and accounts of all gross sums collected. Said
books, records and accounts shall at all reasonable times be open
to inspection by CITY or CITY'S designated representative or agent.
7.3 AB 939 SERVICE FEE: CONTRACTOR shall submit to CITY
all revenues collected through CONTRACTOR'S billing services, which
are designated as AB 939 Service fees, in accordance with fee
structure established by CITY, from time to time, by Resolution.
SECTION 8.0 TERM OF CONTRACT
8.1 TERM: The term of this Contract shall commence on
August 1, 1991 and shall continue for nineteen (19)months until
February 28, 1993. Contract shall renew automatically thereafter
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year to year subject to the right of either party to terminate for
any reason on the anniversary date, upon 180 days' written notice,
preceding that date. CONTRACTOR expressly waives any and all
rights under Section 4272 of the Health and Safety Code and agrees
that the term will be governed solely by this Contract.
SECTION 9.0
9.1 CITY REGULATIONS: This Contract is subject to all
CITY ordinances and resolutions, both present and future. To the
extent they regulate the subject matter of this Contract, said CITY
ordinances and resolutions shall bind the parties hereto and shall
bind each of the parties hereto and are by this reference
incorporated herein at the time the ordinance and/or resolution is
signed.
STATUTES, ORDINANCES & RESOLUTIONS
A. This Contract is further subject to pre-emptive laws,
ordinances and/or resolutions of the United States, Gtate of
California, and the subdivisions and agencies thereof. To the
extent that they regulate the subject matter of this Contract, said
statutes, ordinances, and resolutions shall bind the parties hereto
and shall bind each of the parties hereto and are by this reference
incorporated herein.
B. CITY and CONTRACTOR agree to negotiate in good faith
to attempt to alter the terms and provisions of this Contract to
meet the spirit and letter of future legislation by federal, state,
and/or local governments.
9.2 IMMIGRATION REFORM AND CONTROL ACT: CONTRACTOR shall
be aware of and comply with all Federal, State, County and City
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Statutes, Ordinances and Regulations, including Workers'
Compensation laws (Division 4, California Labor Code) and the
1lImmigratian Refarm and Control Act of 198611 (SUSC, Sections 1101
through 1525), to include but not limited to, verifying the
eligibility for employment of all agents, employees, subcontractors
and consultants that are included in this Contract.
9.3 PROVISIONS REOUIRED BY LAW DEEMED INSERTED: Each and
every provision of law and clause required by law to be inserted in
this Contract shall be deemed to be inserted herein and included
herein, and if, through mistake or otherwise, any such provision is
not inserted, or is not correctly inserted, then upon application
of either party, this Contract shall forthwith be physically
amended to make such insertion or correction.
SECTION 10.0 INDEMNITY, INSURANCE AND BONDS
10.1 INDEMNITY: CONTRACTOR shall assume the defense of,
pay all expenses of defense, and indemnify and hold harmless CITY,
and its agents, officers and employees, from all claims, loss,
damage, injury and liability of every kind, nature and description,
directly or indirectly arising from or in connection with the
performance of this Contract or work; or from any failure or
alleged failure of CONTRACTOR to comply with any applicable law,
rules or regulations includingthose relating to safety and health;
except for loss or damage which was caused solely by the active
negligence of CITY: and from any and all claims, loss, damage,
injury and liability, howsoever the same may be caused, resulting
directly or indirectly from the nature of the work covered by this
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Contract, unless the loss or damage was caused solely by the active
negligence of CITY. The expenses of defense include all costs and
expenses, including attorney's fees for litigation, arbitration, or
other dispute resolution method.
10.2 INSURANCE : Without limiting CONTRACTOR'S
indemnification, it is agreed that CONTRACTOR shall maintain in
force at all times during the performance of this Contract, a
policy or policies of liability insurance in an amount of at least
$1,000,000 combined single limit covering its operations, including
coverage for contractual liability, and all other liabilities set-
forth herein.
A. CONTRACTOR'S liability insurance policies shall
contain the following clauses:
1. "The City of Carlsbad is added as an additional
insured as respects operations of the named insured
performed under contract with the CITY."
2. "It is agreed that any insurance maintained by the
CITY shall apply in excess of and not contribute
with, insurance provided by this policy.t1
B. All insurance policies required by this paragraph
shall contain the following clauses:
1. "This insurance shall not be canceled, limited or
non-renewed until after thirty (30) days written
notice has been given to the CITY."
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2. "The insurer waives any rights of subrogation it has
or may have, against the CITY or any of its officers
or employees. It
C. Certificates of insurance evidencing the coverages
required by the clauses set forth above shall be filed with the
City Clerk and the Risk Manager prior to the effective date of this
Contract.
10.3 FIDELITY BOND: CONTRACTOR will provide CITY with a
Blanket Fidelity Bond in the amount of at least $100,000 covering
all employees of CONTRACTOR.
10.4 PERFORMANCE BOND: CONTRACTOR shall secure a surety
bond in the penal sum of $50,000.00 conditioned upon the faithful
performance of this Contract. The proof of bonding shall be
delivered to CITY and be kept in full force at all times by
CONTRACTOR.
SECTION 11.0 PERMITS b LICENSES
11.1 REQUIREMENTS: CONTRACTOR shall maintain all required
City, County and State permit(s) and licenses to operate at the
expense of CONTRACTOR.
SECTION 12.0 ASSIGNMENT
12.1 SUB-CONTRACTING: CONTRACTOR or CITY may assign or
sub-contract portions of the work within this Contract only after
obtaining approval from the City Council.
12.2 SALE OF OWNERSHIP: It is mutually agreed that the
personal qualifications of the parties controlling the corporation
named herein as CONTRACTOR are a part of the consideration for the
17
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_.
granting of this Contract and said parties do hereby agree to
maintain active control and supervision of the operations of the
corporation. No assignment or transfer, pledge, encumbrance or
sale, voluntary or involuntary, in whole or in part of said
corporation or the Contract or any interest therein, and no
contract for the management and operation of the corporation or the
Contract shall be valid or effective without the consent of CITY.
CONTRACTOR requests for consent shall not be unreasonably withheld
by CITY.
12.3 DELIVERY OF NOTICES: All notices to either party
shall be deemed received twenty-four (24) hours after their deposit
in the United States mail, postage prepaid, addressed to the
Utilities & Maintenance Department at 2075 Las Palmas Drive,
Carlsbad, California 92009, copy to City Manager at 1200 Carlsbad
Village Drive, Carlsbad, California 92008, to CONTRACTOR at 5960 El
Camino Real, Carlsbad, California 92009, as is applicable.
SECTION 13.0 EXCLUSIVENESS OF CbN%'mc!T
13.1 EXCLUSIVITY: So long as this entire Contract is in
full force and effect, CITY shall not enter into any Contract with
any other agent for the purpose of performance of any of
CONTRACTOR'S obligations herein, except as provided in the
recycling portions of the Contract.
13.2 AUTHORIZED DISPOSAL: Tree trimmers, gardeners,
contractors, subcontractors, and other persons operating a separate
business, shall be entitled to dispose of the grass clippings,
prunings, and small loads of construction material, etc., which
18
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they generate in their separate businesses, only when the items can
be discarded at the end of each working day and without the use of
refuse bins or equipment.
SECTION 14.0 DEFAULT BY CONTRACTOR
14.1 DEFAULT: In the event CONTRACTOR fails for any reason
whatsoever to perform any obligations within this entire Contract,
CITY will give CONTRACTOR ten (10) days written notice of default
from CITY. If CONTRACTOR has not made corrections to the
satisfaction of CITY, CITY may, at its sole option terminate this
entire Contract or a portion of the Contract for cause. If CITY
sustains any cost or expense by reason of any default by
CONTRACTOR, CONTRACTOR shall pay the amount thereof to CITY.
SECTION 15.0 STRIKES
15.1 CITY RIGHTS: In the event CONTRACTOR is prevented
from performing any services, or is interrupted in the performance
of any services by reason of any strike or other labor action, CITY
may, at no cost to CITY, use CONTRACTOR'S equipment for the purpose
of providing citizens of CITY refuse collection and recycling
services during the continuance of the strike.
15.2 REIMBURSEMENT: CONTRACTOR shall pay to CITY a pro
rata share of the fees collected for any period during which CITY
provides such service. The share of fees to be paid shall be
determined by CITY.
SECTION 16.0 REMEDIES
16.1 ARBITRATION: Any disagreement between the parties
involving the construction or application of any of the terms,
19
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_-
s covenants, or conditions of this Contract, may, upon the written
request of one party served to the other be submitted for
arbitration. Any actions of arbitration shall comply with, and be
governed by, the provisions of the California Arbitration Act,
Sections 1280 through 1294.2 of the California Code of Civil
Procedure.
16.2 COST OF ARBITRATION: All cost of arbitration shall
be borne by the losing party or in such proportions as the
arbitrator shall decide.
16.3 ATTORNEY FEES: In addition to the provisions above,
if legal action or arbitration is required to enforce the terms of
this Contract, the prevailing party shall be entitled to reasonable
attorney fees.
SECTION 17.0 VERBAL AGREEMENT OR CONVERSATION
17.1 NULLIFICATION: No verbal agreement or conversation
with any officer, agent or employee of the CITY, either before,
during or after the execution of this Contract, shall affect or
modify any of the terms or obligations herein contained, nor such
verbal agreement or conversation entitle CONTRACTOR to any
additional payment whatsoever under
City Attorney
COAST WASTE MANAGEMENT, INC. /I p By : &,y; 7cw9’
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EXHIBIT 6 a e
CllY OF CARLSBAD
Policw No. 46 (paqe 1 of 4 Daqes)
COUNCIL POLICY STATEMEM Date Issued 3/19/91
Effective Date 3/19/91
Cancellatian Date N /A
General Subject: SuDersedes No. N /A
SOLID WASTE MANAGEMENT
Specific Subject:
Copies to: City Council, City Manager, City Attorney, Department and
Division Heads, Employee Bulletin Boards, Press, File
BACKGROUND:
The California Integrated Waste Management Act of 1989 adopted as AB 939 (the "Acf) requires Carlsbad and the other cities of San Diego County to assume major new
responsibilities for solid waste. Under the "Act", sties and the County are required tc
develop and approve their own "solid waste plans", known as Source Reduction ani
Recycling Elements. All aties and the County are required to cooperate in findinr mutually acceptable, environmentally safe and financially feasible programs and facilitie
to meet the solid waste disposal needs of the region.
Landfill capacity in San Diego County has been depleted. Carlsbad has supporte
expadon of the ~an MZ~XO~ landfill and agreed to codder accepting a transfer stador
The City also has supported the County's efforts to site new landfills and is committed t
atpvide recycling. However, Carlsbad, Escondido, Oceanside and Encinitas have oppose
incinedon of solid waste on environmental, land use compatibility and econoxni
grounds. The City is responsible for managing solid waste within Carlsbad and fc
participation in mutually acceptable regional solutions. The City Council has thereforc
determined to state its policy for solid waste management.
PURPOSE:
This Policy is intended to implement the "Act" and provide guidance for the City
involvement in regional solid waste management issues. The Policy will provide guidanc
to staff in developing the City's some reduction, recycling element and direction fort)
programs of source reduction, recycling and recovery necessary to meet the 25 perca
and 50 percent diversion req~ements of the Act. Achievement of these diversion goa
and the City itself create, handle, process and dispose of solid waste. The City w
actively promote these changes with cost effective and environmentally safe program
requires important changes in the ways that residents, businesses, institutions, hade
e a
CITY OF CARLSBAD
Policv NO. 46 (pane 2 of 4 Dappq) COUNCIL POLICY STATEMEM Date Issued 3/19/91
3 / 1 9 / 9 1 Effective Date Cancellatian Date N/A
General Subject: SuDersedes No. N/A
SOLID WASTE MANAGEMENT
Specific Subject:
Copies to:
This Policy also expresses the City's preference for a regional solid waste manageme
system, controlled by responsible public agenaes.
PoLrCx
1. Intenrated Waste Mananement:
City Council, City Manager, City Attorney, Department and Division Heads, Employee Bulletin Boards, Press, File
&
-
A. Source reduction, recyclings reuse and composting are the most approph
strategies to accomplish reduction in the amount of solid waste to be disposed
in environmentally safe sanitary landfills. This hierarchy of strategies is accordance with the requirements of the "Act".
B. A publicly controlled solid waste management system, which protects t
environment and the rate payer, is prefened. However, 2 a publicly control
system cannot meet the needs of the City, private sector alternatives will considered.
C. A regional joint powers agency (JPA) should be formed to cooperath
implement the integrated Waste Management Plan created under the "Act". 'I
JPA should have the power to conduct source reduction activities and site, acqui develop, permit and operate solid waste facilities provided for in the Integral
Waste Management Plan for San Diego County. All agenaes are invited to join 1
JPA, however, it is believed that a JPA can be effective with less than 100 percr membmhip.
D. Ownership and control of the waste stream will be retained so tl
Carlsbad's waste can be directed toward the most cost effective a
environmentally safe solid waste management strategies. AlI contracts for refi
collection in the City will provide that the City retains ownership of &e set 1 for collection.
+.
(i a -4;
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GTP/ OF CARLSBAD
Policv NO. 46 (Dape 3 of 4 ~agp.~)
COUNCIL POLICY STATEMENT Date Issued 3/19/91
3 / 19 / 9 1
General Subject: Supersedes No. N/A
Effective Date
Cancellatiun Date N/A -
SOLID WASTE MANAGEMENT
Specific Subject:
Copies to: City Council, City Manager, City Attorney, Department and Division Heads, Employee Bulletin Boards, Press, File
2. Environmental Protection and Resource Consemation:
Disposal of refuse in properly constructed landfills is acceptable, while incineration of refuse is unacceptable. Adequate landfill sites are available. "he factors that
cause other agenaes to accept incineration off refuse (randfill UnaVailabXty and
ground water pollution from landfill leachate), do not exist in this region Moreover, incineration does not appear to be a cost effective strategy compared
to comprehensive materials recovery facilities and land€ills.
Maximum Source Reduction and Materials Recoverv:
Waste reduction programs and materials reuse, recycling and compostlng program!
must be used to the fullest extent feasible. A region-wide source reductio~
program should be promptly implemented.
-
3.
4. Recvcling:
k City wide collection of recyciables hm residences and businesses will b
provided.
B. Private and public sector markets for recycled materials will be active
promoted. The city will purchase recyclable materials and goods made fro
recycled materials whenever possible.
C. Private and public sector waste reduction and recycling efforts will 1
atively promoted. -bad will accord priority consideration to existing prim
sector, volunteer and non-profit programs and operations in the development
muniapal waste reduction and recycling activities.
--
C1l%OF CARLSBAD a-
Policy N0.46 (uaqe d
COUNCIL POLICY STATEMENT Date Issued 6/4/91 Effective Date 6/4/
General Subject: SOLID WASTE MANAGEMENT Cancellation Date N/, Supersedes No. 46 da
Specific Subject:
Copies to:' City Council, City Manager, City Attorney, Department and Divi:
Employee Bulletin Boards, Press, File
5. Financina of Solid Waste Manasement Proarams and Fac
A. Fees, grants and service fees should find the City Waste Program. Waste disposal, in particular, shoul
subsidized. Facilities and services should be effective as possib1.e. Major disposal facilities s
constructed by governmental agencies only after a 1 honest public bidding request for proposal or eq
process. In evaluating solid waste management alter priority will be given to a reqional system under
control which protects the ratepayer.
B. Acquisition, coinstruction and operation of sol: facilities requires an assured, stable source of fur
is recognized that the City must pledge revenues tc stable capital and operating funds for the soli management -facilities used by the City. Carlsbad wil
the so called "two-tier fee" for the disposal of salic
C. Fees to mitigate impacts of solid waste facilities be imposed through the CEQA process. Carlsbad opposc
fees" as a means to generate revenues for general p~ Such fees establish an expectation that land use deck
for sale. Solid waste facilities should be sited public interest requires; based on environmental rev
good, objective land use, zoning and planning conside
Possible adverse environmental effects from a fac should be identified during the environmental proc fully mitigated, as required by CEQA. Mitigation II
might require the payment of fees to mitigate ongoing i Such fees must meet the AB 1600 nexus.
Carlsbad has accepted its shaire of regional facilities throi
environmental process and fully expects others to do the same fo waste facilities.
,,