HomeMy WebLinkAboutStaff Report 4.A 06/20/2005CITY OF PETALUMA, CALIFORNIA June 20, 2005
AGENDA BILL
Agenda Title: Meeting Date: June 20, 2005
Resolution Authorizing Extension of Solid Waste, Recycling, Yard
Waste and Street Sweeping Franchise Agreement and Approving Meeting Time: Z 3:00 PM
An Increase of Maximum Rates of Four Percent (4%) Effective July ❑ 7:00 PM
1, 2005.
Category (check one): ❑ Consent Calendar ❑ Public Hearing ❑ New Business
N Unfinished Business ❑ Presentation
Denartment: I Director: I Contact Person: Phone Number:
City Manager I Michael Bierman I Michael Bierman 707 778-4347
Cost of Proposal: N/A Account Number:
N/A
Amount Budgeted: N/A Name of Fund:
Attachments to Agenda Packet Item:
1. Amendment 5 To Franchise Agreement
2. Resolution Extending Agreement and Approving an Increase of Maximum Rates of 4%
Summary Statement:
On May 16, 2005, the City Council directed the City Manager to negotiate up to a six month contract
extension with Waste Management to provide a continuation of service while the City continues
negotiations to resolve outstanding issues in a proposed Franchise Agreement with Empire Waste
Management. The attached amendment to the current contract provides for that extension of service and
allows for a rate increase of maximum rates of four percent (4%), effective July 1, 2005.
Recommended Citv Council Action/Suggested Motion:
Approve the amendment as negotiated.
Reviewed by Admin. Svcs. Dir: Reviewed by City Attornev:
Date: Date:
Todav's Date: Revision # and Date Revised:
June 13, 2005 #
Annroved y Citv Manager:
Date:
File Code:
CITY OF PETALUMA, CALIFORNIA
June 20, 2005
AGENDA REPORT
FOR
Extension of Current Contract and Approval of Interim Rate Increase
EXECUTIVE SUMMARY: This resolution amends the existing waste collection franchise
agreement to extend the agreement from July 1, 2005 through December 31, 2005. It
also allows for an increase in rates charged by Empire Waste Management in maximum
rates of 4%, effective July 1, 2005. Empire Waste Management has waived any regular
rate increase afforded under the current contract during the selection process over the last
two years. No change in service is included during the extension period.
2. BACKGROUND: At the May 16, 2005 City Council meeting, the City Council directed the
City Manager to continue negotiations with Empire Waste Management in order to
attempt to resolve outstanding issues relating to the development of new collection
franchise and disposal agreements. The Council also directed the City Manager to
negotiate an extension of the current agreement for collection to allow up to an additional
six (6) months on the contract. As agreed to in the negotiations, the City will continue to
dispose of its refuse at Redwood Landfill at least until November 15, 2005. It is
anticipated that selection of a refuse collection and disposal agreement will be completed
by that date.
3. ALTERNATIVES: None. This amendment incorporates the direction of the Council to
provide uninterrupted service delivery during the selection and negotiations process.
4. FINANCIAL IMPACTS: A slight increase in franchise fee revenue will be realized as a
result of the 4% rate increase.
5. CONCLUSION: The extension of the current contract is necessary and the adjustments of
maximum rates are reasonable and required.
OUTCOMES OR PERFORMANCE MEASUREMENTS THAT WILL IDENTIFY SUCCESS OR
COMPLETION:
Contract extension will be signed and new rates implemented.
RECOMMENDATION: Approve the amendment as written.
DRAFT
RESOLUTION AUTHORIZING THE CITY MANAGER TO SIGN
AMENDMENT NO. 5 TO THE AGREEMENT FOR COLLECTION AND DISPOSAL
OF GARBAGE, RUBBISH, WASTE MATTER AND RECYCLABLES AND STREET
SWEEPING WITHIN THE CITY OF PETALUMA, EXTENDING THE TERMINATION
DATE, AND AUTHORIZING AN INCREASE IN MAXIMUM RATES OF 4%
WHEREAS, the City is engaged in a process to solicit proposals for a new Franchise
Agreement for waste collection services; and
WHEREAS, the City and Empire Waste Management wish to extend the term of the
current agreement to provide an uninterrupted continuance of service while a final selection is
made for refuse collection to December 31, 2005; and
WHEREAS, Empire Waste Management shall be granted an increase in maximum rates
of four percent (4 %), effective July 1, 2005, as a result of this contract extension and in
recognition of their prior years' waivers of rate increases in maximum rates afforded in the
existing franchise agreement during the extended period of proposal review.
NOW, THEREFORE, BE IT RESOLVED that the City Manager is hereby authorized
to sign Amendment 5 to the Agreement for Collection and Disposal of Garbage, Rubbish, Waste
Matter, and Recyclables and Street Sweeping within the City of Petalurna, attached as Exhibit A,
including an adjustment in maximum rates of no more than 4% effective July 1, 2005 as
reflected in Exhibit B.
3
EXHIBIT A
AMENDMENT NO. 5 TO THE AGREEMENT FOR COLLECTION AND DISPOSAL
OF GARBAGE, RUBBISH, WASTE MATTER, AND RECYCLABLES AND STREET
SWEEPING WITHIN THE CITY OF PETALUMA
THIS AMENDMENT to the Agreement of Collection and Disposal of Garbage, Rubbish,
Waste Matter, and Recyclables and Street Sweeping Within the City of Petaluma, dated June 16,
1997 ("the Agreement"), is entered into by and between the City of Petaluma, a charter city, and
a municipal corporation ("the City"), and Empire Waste Management, a division of Waste
Management Collection and Recycling, Inc., a California corporation ("the Contract Agent"),
effective 2005.
WHEREAS, the parties desire to extend the termination date of the Agreement from June
30, 2005 to December 31, 2005, and to amend the Agreement to permit such an extension
without the need for three year's notice.
NOW, THEREFORE, the parties agree as follows:
The first sentence of the paragraph of the Agreement labeled "TERM" is amended to read
as follows:
This contract shall commence on June 16, 1997 and shall terminate on December
31, 2005, unless terminated for cause as herein specified.
2. For purposes of this amendment, the parties agree to mutual waiver of the following
provision in the final sentence of the paragraph of the agreement labeled "TERM", only
to the extent that it requires that any amendment to extend the term of this contract be
agreed upon no later than three years prior to the end of the contract:
Any amendment to extend the term of this contract must be agreed upon in
writing by the City and Contract Agent no later than three (3) years prior to the
end of the contract as established in this section, except if terminated as
authorized in the contract.
3. The requirement that any amendment to the contract be agreed upon in writing remains in
full force and effect.
4. In consideration of the extension of this agreement, the Contract Agent is authorized an
interim increase in maximum rates of four percent (4%), effective July 1, 2005.
5. During this period of extension, the City shall be able to continue to dispose of all
material at the Redwood Landfill based on tonnage rates in effect during the previous
agreement.
6. All other terms and conditions of the Agreement, including any and all amendments and
addenda thereto, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties execute this Amendment to Agreement.
CITY OF PETALUMA EMPIRE WASTE MANAGEMENT
City Manager
APPROVED AS TO FORM:
City Attorney
ATTEST:
City Cleric
APPROVED:
Administrative Services Director
APPROVED:
Risk Manager
President
Secretary/Treasurer
5
INCREASE: 4.00%
EFFECTIVE: 711/2005
RESIDENTIAL SERVICE
120 GALLON AUTO CAN
1 EACH ADD'L 35 GAL (EXTRAS)
135 GALLON AUTO CAN
EACH ADD'L 35 GAL (EXTRAS)
60 GALLON AUTO CAN
IADD'L 60 GAL CAN
EACH ADD'L 35 GAL (EXTRAS)
90 GALLON AUTO CAN
IADD'L 90 GAL CAN
EACH ADD'L 35 GAL (EXTRAS)
162 YEARS OR OLDER ON SSI & MEDI-CAL
1
(APARTMENTS
132 GALLON CAN
ADD'L 32 GAL CAN
EACH ADD'L 32 GAL (EXTRAS)
I
ROLL OFF
120 YARD
130 YARD
140 YARD
IDisposal per Ton
1Llner
0
REVIEWED BY:
DATE:
PETALUMA
EMPIRE WASTE MANAGEMENT
RATE SHEET
Effective 07/0112005
5.14 PER MO. 1
6.61 1.PERSVCI
1
9.11 PER MO. 1
6.61 PERSVCI
1
15.94 PER MO. 1
17.14 PER MO. 1
6.61 PER SVC 1
1
26.99 PER MO. 1
29.4fi PER MO. 1
6.fi1 PER SVC)
9.96 1PER MO. 1
(
15.98 PER MO.
13.62 PER MO. 1
5.25 PERSVCI
137.76
165.28
165.28
58.14
31.20
COMMERCIAL CAN SERVICE
132 GALLON CAN
IADD'L 32 GAL CAN
1 EACH ADD'L 32 GAL (EXTRAS)
1
1
190 GALLON AUTO CAN
ADD'L 90 GAL CAN
EACH AOD'L 35 GAL (EXTRAS)
I
1
EXHIBIT B
15.98 PER MO.
15.98 PER MO.
6.61 PER SVC
39.60 PER MO. 1
39.60 PER MO. 1
,6.61 PER SVC_
I
I
I
COMMERCIAL BIN SERVICE
FRED. I 1 YD 11.5 YDS 2 YDS 3 YDS 4 YDS
1XAN�135.29
2X/WK 216.61
3XMK
300.03
4XNWK
354.25
5X/WK
477.72
6XPWK
566.59
EACH ADDITIONAL YARD
APPROVED BY:
DATE:
158.93 212.65
251.86 354.87
354.87 567.21
502.44 744.14
623.52 919.42
549.97 1,098.65
436.76
638.68
842.93
1,046.42
1,248.86
6 YDS
319.74 1
527.91 1
797.13 1
1,052.04 1
1,306.231
1,633.17 1
PETALUMA-Rate Sheet 2001-2005 As 6/6/2005 6