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2013-05-28 - AGENDA REPORTS - SOLID WASTE FRANCHISE (2)
CONSENT CALENDAR 1017.11111 SUBJECT: FIRTWTM 1_0,01M Agenda Item: 5 CITY OF SANTA CLARIT." AGENDA REPORT City Manager Approval: Item to be presented by: May 28, 2013 ANNUAL RATE ADJUSTMENT FOR FRANCHISED SOLID WASTE SERVICE PROVIDERS Public Works RECOMMENDED ACTION City Council adopt a resolution for the Second Amendment to the Amended and Restated Agreement Between the City of Santa Clarita and USA Waste of California, Inc. (dba Waste Management), for residential solid waste management services allowing an adjustment in their residential rates by 4.31 percent based on the formula outlined in their Franchise Agreement, and authorize the City Manager to execute the amended agreement, subject to City Attorney approval. Adopt a resolution for the First Amendment to the Amended and Restated Agreement Between the City of Santa Clarita and Burrtec Waste Industries, Inc. (Burrtec), for commercial solid waste management services allowing an adjustment in rates by 4.40 percent based on the formula outlined in their Franchise Agreement, and authorize the City Manager to execute the amended agreement, subject to City Attorney approval. BACKGROUND In November 2003, the City Council selected USA Waste of California, Inc., as the exclusive solid waste hauler for residential services and Burrtec Waste Industries, Inc., for commercial services. Pursuant to Section 6.3 of the Agreement between the City of Santa Clarita and Waste Management, for residential solid waste management services and the Agreement between the City and Burrtec Waste Industries, Inc., for commercial solid waste management services (Franchise Agreements), Waste Management and Burrtec may request rate adjustments for their next rate year (July 1, 2013, through June 30, 2014) if they submit a request for the adjustment by April 1 and follow the specific guidelines for a rate increase as outlined in Section 6.4 of the Franchise Agreements. Per Section 6.3 of the Franchise Agreements, "Adjustments to the AdOWid.2aw�q Rei 13 -as maximum rates is subject to the approval of the City Council at a publicly noticed City Council meeting, although the Council's discretion shall be limited to determining, based on substantial evidence, whether the requested maximum rate adjustment meets the requirements as set forth herein." On May 24, 2011, the City negotiated additional residential and commercial diversion programs be added to the Franchise Agreements. The diversion programs included a Super Saver Program providing a financial incentive for increased recycling and use of smaller waste carts for residents, small recycling carts for businesses that lack space for full-size bins, and litter/abandoned items abatement from the public right-of-way. With the addition of the new diversion programs, the City Council authorized the City Manager to execute the Amended and Restated Franchise Agreements to include an extraordinary rate adjustment for rate year 2013. Waste Management's extraordinary rate adjustment for rate year 2013 is 2.5 percent. The City's review of Waste Management's proposed annual rate adjustment of 1.81 percent increase is acceptable. The annual rate cap is limited to 6 percent. This authorized extraordinary rate of 2.5 percent and the proposed annual rate adjustment of 1.81 percent will adjust the single-family rate to a total of 4.31 percent. In the attached letter submitted by Waste Management dated April 1, 2013, they calculated the adjustment based on the "All Other" category weighted change based on 100 percent of the Bureau of Labor and Statistics Consumer Price Index All Urban Consumers, Garbage, and Trash Collection, Not Seasonally Adjusted, U.S. City Average. In 2011 , the amended and restated agreement was revised to use 50 percent of the "All Other" category. The "All Other" category is one of five components used to determine the annual rate adjustment. This component is used to reflect the changes in costs, which are not represented in the other four components of fuel, labor, disposal, and equipment. In addition, an adjustment was made in the reporting year of the Department of Energy Fuel calculation to be more consistent with the reporting year requirements of the Franchise Agreement. Therefore, Waste Management's calculated adjustment of 4.5 percent has been changed to the City's calculated adjustment of 4.31 percent. Also in the letter submitted by Waste Management, the rate sheets included show the rates for past years proposed, but not approved, by City Council. With the approval of the proposed rate change, the new single-family monthly rate will increase to $20.19 from the current rate of $19.36, effective July 1, 2013. By comparison, residential rates in the Los Angeles County Unincorporated Areas of the Santa Clarita Valley are $22.20. Attached is a summary of the Method of Adjustment for Waste Management for this annual rate adjustment described in Section 6.4 of the Agreement. At the same meeting on May 24, 2011, the City Council approved an extraordinary adjustment of 2.475 percent for the City's commercial rates with Burrtec for rate year 2013, beginning on July 1. The City's review of Burrtec's proposed rate increase has determined a 1.925 percent increase is acceptable. The annual rate cap is limited to 6 percent. The annual rate adjustment of 1.925 percent and extraordinary adjustment will total 4.40 percent, which is effective July 1, 2013. Attached is a summary of the Method of Adjustment for Burrtec Waste Industries, Inc., for this annual rate adjustment described in Section 6.4 of the Agreement. ALTERNATIVE ACTIONS Other action as determined by the City Council. FISCAL IMPACT None. ATTACHMENTS Resolution - Burrtec Commercial Burrtec First Amendment Burrtec Rate Methodology Burrtec Request Letter Resolution - Waste Management Residential Waste Management Second Amendment Waste Management Rate Methodology Waste Management Request Letter W RESOLUTION 13- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, APPROVING THE FIRST AMENDMENT OF THE AMENDED AND RESTATED AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND BURRTEC WASTE INDUSTRIES, INC. (BURRTEC), FOR COMMERCIAL SOLID WASTE MANAGEMENT SERVICES WHEREAS, the City of Santa Clarita (City) is empowered under Section 7 of Article 1 I of the California Constitution to make and enforce, within its limits, all police and sanitary ordinances and regulations not in conflict with general laws; and WHEREAS, in partial implementation of Section 7 of Article 11 of the California Constitution, California Public Resources Code Section 40059 authorizes the City to determine all aspects of handling of solid waste that are of local concern, including the frequency of collection, means of collection and transportation, level of services and nature, location, and extent of waste handling services; and WHEREAS, on November 20, 2003, the City and Burrtec Waste Industries, Inc. (Burrtec), entered into that certain "Agreement Between the City of Santa Clarita and Burrtec Waste Industries, Inc., for Commercial Solid Waste Management Services"; and WHEREAS, on May 24, 2011, the City Council directed staff to execute an Amended and Restated Agreement with Burrtec; and WHEREAS, pursuant to Section 6.3 of the Amended and Restated Agreement, Burrtec is entitled to pursue an annual adjustment to its maximum rates for the rate year commencing on July 1, 2013, to June 30, 2014; and WHEREAS, the City and Burrtec desire to amend the Amended and Restated Agreement by increasing the maximum rates as outlined in Sections 6.3 and 6.4 of the Agreement Between the City of Santa Clarita and Burrtec Waste Industries, Inc., for Commercial Solid Waste Management Services. NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve as follows: SECTION 1. The City Council does hereby find, determine, and declare pursuant to California Public Resources Code Section 40059(a)(1) and Section 7 of Article 11 of the California Constitution that the public health, safety, and well-being require approval of that certain "First Amendment of the Amended and Restated Agreement Between the City of Santa Clarita and Burrtec Waste Industries, Inc., for Commercial Solid Waste Management In Services" (First Amendment), a copy of which is attached. The City Manager is authorized to execute the First Amendment on behalf of the City and such First Amendment is hereby approved. SECTION 2. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED this 28th day of May, 2013. MAYOR ATTEST: INTERIM CITY CLERK DATE: 0 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA) 1, Armine Chaparyan, Interim City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 28th day of May, 2013, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: INTERIM CITY CLERK 71 FIRST AMENDMENT OF THE AMENDED AND RESTATED AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND BURRTEC WASTE INDUSTRIES, INC., FOR COMMERCIAL SOLID WASTE MANAGEMENT SERVICES This FIRST AMENDMENT OF THE AMENDED AND RESTATED AGREEMENT BETWEEN THE CITY OF SANTA CLARII'A AND BURRTEC WASTE INDUSTRIES, INC., FOR COMMERCIAL SOLID WASTE MANAGEMENT SERVICES, (First Amendment) is entered into this day of 2013, between the City of Santa Clarita, California, a California municipal corporation (City) and Burrtec Waste Industries Inc., a California corporation (Burtec) to amend that certain "Amended and Restated Agreement Between the City of Santa Clarita and Burrtec Waste Industries, Inc., for Commercial Solid Waste Management Services." RECITALS WHEREAS, the City is empowered under Section 7 of Article 11 of the California Constitution to make and enforce, within its limits, all police and sanitary ordinances and regulations not in conflict with general laws; and WHEREAS, in partial implementation of Section 7 of Article 11 of the California Constitution, California Public Resources Code Section 40059 authorizes the City to determine all aspects of handling of solid waste that are of local concern, including the frequency of collection, means of collection and transportation, level of services and nature, location, and extent of waste handling services; and WHEREAS, on November 20, 2003, the City and Burrtec Waste Industries, Inc. entered into that certain "Agreement Between the City of Santa Clarita and Burrtec Waste Industries, Inc., for Commercial Solid Waste Management Services"; and WHEREAS, on May 24, 2011, the City Council directed staff to execute an Amended and Restated Agreement with Burrtec and WHEREAS, pursuant to Section 6.3 of the Amended and Restated Agreement, Burrtec is entitled to pursue an annual adjustment to its maximum rates for the rate year commencing on July 1, 2013; and WHEREAS, the City and Burrtec desire to amend the Amended and Restated Agreement by adjusting the maximum rates as outlined in Section 6.3 and 6.6 of the Amended and Restated Agreement. NOW, THEREFORE, the City and Burrtec in consideration of their mutual promises, amend the Amended and Restated Agreement as follows: SECTION 1. Amend Section 6.2 to read as follows. 6.2 Maximum Rates The rates Company Bills to Customers shall not exceed the Maximum Rates set forth in Exhibit 2. SECTION 2. Exhibit 2 of the Amended and Restated Agreement, originally entitled "Initial Maximum Rates" shall be retitled as "Maximum Rates" and shall be amended to contain the following maximum rates commencing July 1, 2013: Container I Number of Weekly Green Waste Picku s 1 2 3 Number of Weekly Pickups 7 3 yd3 Size 1 2 3 4 5 6 7 90 -gal Cart $46.28 $83.30 $138.83 $185.11 $231.40 $277.68 N/A 32 -gal Cart $41.37 $74.48 $124.12 $165.49 $206.88 $248.26 N/A 1.5 yd' $64.72 $126.17 $187.66 $248.47 $309.27 $370.10 $430.92 2 yd3 $67.33 $131.28 $195.25 $258.56 $321.81 $385.12 $448.41 3 yd3 $73.63 $143.57 $213.52 $282.75 $351.95 $421.19 $490.40 4 yd3 $92.51 $180.42 $268.31 $355.28 $442.25 $529.21 $616.19 6 yd3 $118.33 $230.71 $343.13 $454.34 $565.55 $676.78 $787.99 Container Size I Number of Weekly Green Waste Picku s 1 2 3 1 4 1 5 6 7 3 yd3 $55.22 1 $107.68 1 $106.14 1 $212.06 1 $263.96 1 $315.89 1 $367.80 Special Services Costs Locking Bin $11.42 per bin per month Commercial Bulky Item Pickup $22.83 per item Additional Bin Cleanings $39.97 per cleanin Extra Bin Empties $39.97 per bin Extra Trash Cart Empties $28.28 2er barrel Com actor Rates 12x comparable bin rate Late Fees 11.5% per month lEmergency Services 1$79.96 per hour SECTION 3. Except as expressly modified in this First Amendment, all other provisions of the Agreement are and remain in effect. (Signatures on next page) I IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. CITY OF SANTA CLARITA A California Municipal Corporation Kenneth W. Striplin, City Manager ATTEST: Armine Chaparyan Interim City Clerk APPROVED AS TO FORM: Joe Montes City Attorney M BURRTEC WASTE INDUSTRIES, INC. 02 [CEO, President, Chairman of the Board or any Vice President] And By: [The Secretary, any assistant secretary, CFO or any assistant treasurer] State of California ) County of ) On before me, Dale Here Insert Name and Title of the Office, Place Notary Seat Above N..(,) of Signer(,,) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. W Signature of Nomry Public 10 CD cm mt 7/ _ = o o = � , 2 , , cq tm co Ln 7 co co It / / o © \j \ / \)\. \ 0c jt2> \ § \ \ \ =oma« « \ k j ID k £ 2)7 ui a k �� m j ) a p § § £ 3°7 } G \ o E _ £_ e22 - )_f, - a fy«_- :-]/_ ) *) Gƒ!){) +®= 5§42\2 bEZ 0 LL 2j Gf0M0 ft« @\.2 )27 ±§]\\/ )G,==f $\ J : 3)2 Eo4 0 ± 00m0 ao0 �¢� 23@0 = 2 \m 0 CL .2 ]22 eoe/\§ -2-C) \£ FL J: co3 3 (_¥ \ a� o \ /-80 ( � ° & } / E u E _ 0 `k f ) E ] [� , #� 0 # E ca ) - - CL § § - _3 LL � a 0 § § BURRTEc WASTE INDUSTRIES, INC. "We'll Take Care Of It" March 26, 2013 Mark Patti City of Santa Clarita 23920 Valencia Blvd Santa Clarita, CA 91355 Dear Mr. Patti: Pursuant to the City of Santa Clarita's Agreement for Commercial Solid Waste Management Services, Burrtec respectfully requests a 4.4% adjustment to the commercial rates effective July 1, 2013. The rate adjustment is comprised of the 2.475% extraordinary adjustment that was previously approved by the City Council and a 1.925% annual adjustment. Enclosed please find rate worksheets that include the following: a) The adjustment methodology calculations called out in the Agreement utilizing the cost categories, indices reference and weighting required. b) An adjustment that includes extraordinary increase. c) The Rate component worksheet with the new rates. d) Miscellaneous fees worksheet. Thank you for the consideration. Sincerely, //A - Richard Nino Director Municipal Services cc: Travis Lange, Environmental Services Manager RECEIVED MAR 2 7 2013 Public Works Env. Services City of Santa Clarita 9890 Cherry Avenue • Fontana, California 92335 • 909-429-4200 • FAX 909-429-4290 11 0 ((\ \ t#M0) ( )/o oo=o, w k )/ CD a }))\\\\( 0: //22233 IL t&)§�§7G ]E} " 9�{ )` \\ me co d�{ ( 12, ,2, m, =o`¥G cm `k5± co \U CD �\\ _ �LO 3: } CL0CL r ) @ 3 2 k�2 > ) k)/\\/ < ) 0 0 Lo co 0 0\ \ )/ /((k\\)comm)§k co 00 OD 00 00 222§ Cl� §N} CDcom m„m\ / \ / , a , m kk- - _ _ _ 4 I ,m,,,;x,,,,Co. 9 \\� \§§j j%§§§§§§% § \\(\\)(§j\j§\ % \ 7%%#332(72\\§ #2779 /)/))2<2]j<*S §02 o” { k /27 6)6_ § � Burrtec Waste Industries, Inc. City of Santa Clarita Rate Component Worksheet Santa Clarita - 2013 Rate Increase 3-7-13[1].xlsx 15 2012 Rate Components 2013 Rate Components 1.875% 4.400% 10.00% CPI 10.00% CPI Bin Net to Franchise Total Net to Franchise Total Size Freg Burrtec Fee Rate Burrtec Fee Rate 1.5 1 $55.79 6.20 $61.99 $58.25 6.47 $64.72 1.5 2 $108.76 12.09 $120.85 $113.55 12.62 $126.17 1.5 3 $161.77 17.98 $179.75 $168.89 18.77 $187.66 1.5 4 $214.20 23.80 $238.00 $223.62 24.85 $248.47 1.5 5 $266.62 29.62 $296.24 $278.34 30.93 $309.27 1.5 6 $319.05 35.45 $354.50 $333.09 37.01 $370.10 1.5 7 $371.48 41.28 $412.76 $387.83 43.09 $430.92 2 1 $58.04 6.45 $64.49 $60.60 6.73 $67.33 2 2 $113.17 12.56 $125.75 $118.15 13.13 $131;.28 2 3 $168.32 18.70 $187.02 $175.72 19.53 $195.25 2 4 $222.89 24.77 $247.66 $232.70 25.86 $258.56 2 5 $277.42 30.83 $308.25 $269.63 32.18 $321.81 2 6 $332.00 36.89 $368.89 $346.61 38.51 $385.12 2 7 $386.56 42.95 $429.51 $403.57 44.84 $449.41 3 1 $63.48 7.05 $70.53 $66.27 7.36 $73.63 3 2 $123.77 13.75 $137.52 $129.21 14.36 $143.57 3 3 $184.07 20.45 $204.52 $192.17 21.35 $213.52 3 4 $243.75 27.08 $270.83 $254.47 28.28 $282.75 3 5 $303.41 33.71 $337.12 $316.75 35.20 $351.95 3 6 $363.10 40.34 $403.44 $379.07 42.12 $421.19 3 7 $422.76 46.97 $469.73 $441.36 49.04 $490.40 4 1 $79.75 8.86 $88.61 $83.26 9.25 $92.51 4 2 $155.54 17.28 $172.82 $162.38 18.04 $180.42 4 3 $231.30 25.70 $257.00 $241.48 26.83 $268.31 4 4 $306.28 34.03 $340.31 $319.75 35.53 $355.28 4 5 $381.25 42.36 $423.61 $398.02 44.23 $442.25 4 6 $456.22 50.69 $506.91 $476.29 52.92 $529.21 4 7 $531.20 59.02 $590.22 $554.57 61.62 $616.19 6 1 $102.01 11.33 $113.34 $106.50 11.83 $118.33 6 2 $198.89 22.10 $220.99 $207.64 23.07 $230.71 6 3 $295.80 32.87 $328.67 $308.82 34.31 $343.13 6 4 $391.67 43.52 $435.19 $408.91 45.43 $454.34 6 5 $487.54 .54.17 $541.71 $508.99 56.56 $565.55 6 6 $583.43 64.83 $648.26 $609.10 67.68 $676.78 6 7 $679.30 75.48 $754.78 $709.19 78.80 $787.99 Santa Clarita - 2013 Rate Increase 3-7-13[1].xlsx 15 Burrtec Waste Industries, Inc. City of Santa Clarita Rate Component Worksheet Santa Clarita - 2013 Rate Increase 3-7-13[11.xlsx I I P 2012 Rate Components 2013 Rate Components 1.875% 4.400% 10.00% CPI 10.00% CPI Bin Net to Franchise Total Net to Franchise Total Size Freq Burrtec Fee Rate Burnec Fee Rate 32G Can 1 $35.67 3.96 $39.63 $37.23 4.14 $41.37 32G Can 2 $64.21 7.13 $71.34 $67.03 7.45 $74.48 32G Can 3 $107.00 11.89 $118.89 $111.71 12.41 $124.12 32G Can 4 $142.67 15.85 $158.52 $148.94 16.55 $165.49 32G Can 5 $178.34 19.82 $198.16 $186.19 20.69 $206.88 32G Can 6 $214.02 23.78 $237.80 $223.43 24.83 $248.26 90G Can 1 $39.90 4.43 $44.33 $41.65 4.63 $46.28 90G Can 2 $71.81 7.98 $79.79 $74.97 8.33 $83.30 90G Can 3 $119.68 13.30 $132.98 $124.95 13.88 $138.83 90G Can 4 $159.58 17.73 $177.31 $166.60 18.51 $185.11 90G Can 5 $199.48 22.17 $221.65 $208.26 23.14 $231.40 90G Can 6 $239.38 26.60 $265.98 $249.91 27.77 $277.68 Santa Clarita - 2013 Rate Increase 3-7-13[11.xlsx I I P Burrtec Waste Industries, Inc. City of Santa Clarita Rate Component Worksheet - Greenwaste Santa Clarita - 2013 Rate Increase 3-7-13[1 ].xlsx 2012 Rate Components 2013 Rate Components 75.00% 75.00% 10.00% of Bin 10.00% of Bin Bin Net to Franchise Total Net to Franchise Total Size Freg Burrtec Fee Rate Burrtec Fee Rate 3 1 $47.61 5.29 $52.90 $49.70 5.52 $55.22 3 2 $92.83 10.31 $103.14 $96.91 10.77 $107.68 3 3 $138.05 15.34 $153.39 $144.13 16.01 $160.14 3 4 $182.81 20.31 $203.12 $190.85 21.21 $212.06 3 5 $227.56 25.28 $252.84 $237.56 26.40 $263.96 3 6 $272.32 30.26 $302.58 $284.30 31.59 $315.89 3 7 $317.07 35.23 $352.30 $331.02 36.78 $367.80 Santa Clarita - 2013 Rate Increase 3-7-13[1 ].xlsx Burrtec Waste Industries, Inc. City of Santa Clarita July 2013 Service Current Rate July 1, 2013 Proposed Rate Extra Pick -Up (Bin) $38.29 $39.98 Extra Pick -Up (Compactor) $54.30 $56.69 Extra Pick -Up (Barrel) $27.09 $28.28 Compactor Rates 2x Comparable Rate 2x Comparable Rate Locking Bins (per bin/per month) $10.94 $11.42 Additional Bin Cleanings $38.29 $39.98 Commercial Bulky Item Pickup $21.87 $22.84 Emergency Services (per hour, 1 person, 1 truck) $76.59 $79.96 Late Fees (per month) 1.5% 1.5% Santa Clarita - 2013 Rate Increase 3-7-13(1].xlsx p RESOLUTION 13- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, APPROVING THE SECOND AMENDMENT OF THE AMENDED AND RESTATED AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND USA WASTE OF CALIFORNIA, INC. (WASTE MANAGEMENT), FOR RESIDENTIAL SOLID WASTE MANAGEMENT SERVICES WHEREAS, the City of Santa Clarita (City) is empowered under Section 7 of Article 11 of the California Constitution to make and enforce, within its limits, all police and sanitary ordinances and regulations not in conflict with general laws; and WHEREAS, in partial implementation of Section 7 of Article 11 of the California Constitution, California Public Resources Code Section 40059 authorizes the City to determine all aspects of handling of solid waste that are of local concern, including the frequency of collection, means of collection and transportation, level of services and nature, location, and extent of waste handling services; and WHEREAS, on November 20, 2003, the City and USA Waste of California, Inc. (Waste Management), entered into that certain "Agreement Between the City of Santa Clarita and USA Waste of California, Inc., for Residential Solid Waste Management Services" (Agreement); and WHEREAS, on May 24, 2011, the City Council directed staff to execute an Amended and Restated Agreement Between the City of Santa Clarita and USA Waste of California, Inc.; and WHEREAS, pursuant to Section 6.3 of the Amended and Restated Agreement Between the City of Santa Clarita and USA Waste of California, Inc., Waste Management is entitled to pursue an annual adjustment to its maximum rates for the rate year commencing on July 1, 2013, to June 30, 2014; and WHEREAS, the City and Waste Management desire to amend the Amended and Restated Agreement Between the City of Santa Clarita and USA Waste of California, Inc., by increasing the maximum rates as outlined in Sections 6.3 and 6.4 of the Amended and Restated Agreement Between the City of Santa Clarita and USA Waste of California, Inc. NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve as follows: SECTION 1. The City Council does hereby find, determine, and declare pursuant to California Public Resources Code Section 40059(a)(1) and Section 7 of Article 11 A of the California Constitution that the public health, safety, and well-being require approval of that certain "Second Amendment of the Amended and Restated Agreement Between the City of Santa Clarita and USA Waste of California, Inc., for Residential Solid Waste Management Services" (Second Amendment), a copy of which is attached. The City Manager is authorized to execute the Second Amendment on behalf of the City, and such Second Amendment is hereby approved. SECTION 2. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED this 28th day of May, 2013. MAYOR ATTEST: INTERIM CITY CLERK DATE: 2� STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA) I, Annine Chaparyan, Interim City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 28th day of May, 2013, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: INTERIM CITY CLERK M SECOND AMENDMENT OF THE AMENDED AND RESTATED AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND USA WASTE OF CALIFORNIA, INC., (WASTE MANAGEMENT) FOR RESIDENTIAL SOLID WASTE MANAGEMENT SERVICES This SECOND AMENDMENT OF THE AMENDED AND RESTATED AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND USA WASTE OF CALIFORNIA, INC., (WASTE MANAGEMENT) FOR RESIDENTIAL SOLID WASTE MANAGEMENT SERVICES, (Second Amendment) is entered into this day of 2013, between the City of Santa Clarita, California, a California municipal corporation (City) and USA Waste of California, Inc., a California corporation to amend that certain "Amended and Restated Agreement Between the City of Santa Clarita and USA Waste of California, Inc., for Residential Solid Waste Management Services." RECITALS WHEREAS, the City is empowered under Section 7 of Article 1 1 of the California Constitution to make and enforce, within its limits, all police and sanitary ordinances and regulations not in conflict with general laws; and WHEREAS, in partial implementation of Section 7 of Article 1 I of the California Constitution, California Public Resources Code Section 40059 authorizes the City to determine all aspects of handling of solid waste that are of local concern, including the frequency of collection, means of collection and transportation, level of services and nature, location, and extent of waste handling services; and WHEREAS, on November 20, 2003, the City and USA Waste of California, Inc., (Waste Management) entered into that certain "Agreement Between the City of Santa Clarita and USA Waste of California, Inc., (Waste Management) for Residential Solid Waste Management Services"; and WHEREAS, on May 24, 2011, the City Council directed staff to execute an Amended and Restated Agreement Between the City of Santa Clarita and USA Waste of California Inc.(Waste Management); and WHEREAS, pursuant to Section 6.3 of the Amended and Restated Agreement, Waste Management is entitled to pursue an annual adjustment to its maximum rates for the rate year commencing on July 1, 2013; and WHEREAS, the City and Waste Management desire to amend the Amended and Restated Agreement by adjusting the maximum rates as outlined in Section 6.3 and 6.4 of the Amended and Restated Agreement. NOW, THEREFORE, the City and Waste Management in consideration of their mutual promises, amend the Amended and Restated Agreement as follows: SECTION 1. Amend Section 6.2.2 to read as follows. 6.2.2 Maximum Rates The rates Company Bills to Customers shall not exceed the Maximum Rates set forth in Exhibit 2. SECTION 2. Exhibit 2 of the Amended and Restated Agreement, originally entitled "Initial Maximum Rates" shall be retitled as "Maximum Rates" and shall be amended to contain the following maximum rates commencing July 1, 2013: • Standard Service Rate $20.19 per month • Reduced Rate for no Greenwaste services $18.11 per month • Reduced Rate for Super Saver/Senior/Lifeline Customers $16.16 per month • Mobile Home Service Rate $15.16 per month The multi -family rates will be as follows: Container Costs Street Litter Carts Number of Weekly Pickups $18.21 Refuse Overage Extra Pickup Size 1 2 3 4 5 6 7 1.5 yd3 $60.88 $121.78 $182.66 $243.52 $304.41 $365.30 $426.18 2 yd3 $64.90 $129.78 $194.68 $259.59 $324.47 $389.35 $454.25 3 yd3 $72.92 $145.79 $218.74 $291.64 $364.54 $437.46 $510.37 4 d' $80.91 $161.87 $242.77 $323.68 $404.62 $485.56 $566.47 Special Services Costs Street Litter Carts 17.90 per set per month Restart Charge $18.21 Refuse Overage Extra Pickup $6.08 per pickup Extra Trash Cart $12.14 per month Locking Bin $12.15 per bin per month Bulk Billing Discount 8% Extra Bulky Item Pickup $24.29 per pickup Additional Bin Cleanings $42.51 per cleanin Extra Bin Empties $42.51 per empty Compactor Rates 2x com erable bin rate Late Fees 1.5% per month Emergency Services $85.03 per hour Manure Collection 100% of com erable multifamily bin refuse rate Pre ayment Discount . One month free with 11 months prepaid (Signatures on next page) P1 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. CITY OF SANTA CLARTTA A California Municipal Corporation Kenneth W. Striplin, City Manager ATTEST: Armine Chaparyan Interim City Clerk APPROVED AS TO FORM: Joe Montes City Attorney an WASTE MANAGEMENT M [CEO, President, Chairman of the Board or any Vice President] And By: [The Secretary, any assistant secretary, CFO or any assistant treasurer] State of California ) County of ) On before me, , Dale Here Insert Name and Title ofthe Officer who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public Place Notary Seal Above rd /( co 0 Ci _ CM It )= - cm, , , 2 LL E / L6cli /jam/ \ ( N \ \ CGU` J / A OD 00 a m cn , m m f0 JP \ \ m )\ $ k ƒ§ ( cr P)® \ \}{ , g \ ) ! 2 3 sf } \ o -$-\}. « i /ee _ƒ® fy//±E 3}!)/f ;&g §(®fJr k§ ƒ \/ §;&,_± f>, k(\)\/ §@7G$ƒ $ ° 3\\\)) z*< =JmQ) _ LL.� \) \§(/f/ �ƒ §){50 \() =eggs= * )/3;= 333 ) z§ �` A )� /� a§ E w k ( 2 U)( ( k % & . / » k k . k / )0-0 5 \ CL 2E k _ ■ k ) ) ) - - CL§ co ; a - 0 - - J LL /( I WASTE MANAGEMENT April 1, 2013 Mr, Robert Newman Public Works Director City of Santa Clarita 23290 Valencia Boulevard Ste. 300 Santa Clarita, CA 91355 RE: 2013 Rate Adjustment Review Dear Mr. Newman: Pursuant to Article 6 of the Amended and Restated Agreement, Waste Management (WM) respectfully requests an adjustment of service rates based on the methodology outlined in the agreement. This request is in addition to the previously approved extraordinary adjustment of 2.5%. Calculated Adjustment: 201% Scheduled Approved Adjustment: 2.5% Total Adjustment: 4.916 WM Is proud to be a sustainability partner to the City of Santa Clarita and is committed to assisting the City in complying with State mandates, increasing diversion, being stewards of the environment and active participants in the community. We would like to take this opportunity to highlight just a few of our mutual successes in 2012 accomplished in partnership with City Staff: • WM and the City continue to offer the Super Saver Program, an incentivized rate structure encouraging active recycling participation & decreased disposal. At the customer's request, WM will provide all eligible residents with a 35 -gallon "Super Saver' trash cart in lieu of their current 96 -gallon trash cart. The Super -Saver Cart rate is 20% less than standard trash service. To date, the super saver program has over 1,700 participants. . • WM has worked very closely with the City to continue an effective, sustainable Multi -Family program. This comprehensive program has not only provided savings to property managers through a reduction In disposal costs but has also helped the City to comply with new State regulations. Effective July 1, 2012, State Assembly Bill 341 requires certain businesses to recycle, including Multi -Family accounts with more than four units. In order to proactively address the new regulation, the City and WM partnered to distribute two rounds of outreach letters to all Multi -Family complexes that do not have active recycling programs. Since distribution, 13 additional Multi -Family complexes have implemented recycling programs. • Over the years, WM has provided valuable programs including the Santa Clarita Valley Sharps and Medical Waste Round -Up event, to meet the unique needs of 21 I senior citizens. Senior citizens continue to receive additional value through special drop off and home delivery programs, providing a convenient way to responsibly dispose of needles, lancets, syringes and other sharps. In 2012, nearly 250 Santa Clarita residents participated in the Sharps Home Delivery Program. • WM's Bagster has provided a valuable new diversion program to the City, as a result, Santa Clarita residents have successfully diverted 282.76 tons of additional waste resulting in a 2% Increase in overall Industrial Diversion. All vehicles servicing the City of Santa Clarita are now equipped with WM's state of the art On Board Computing (OCS) which allows our operations and.customer service teams to enhance internal and external communication. OCS replaces paper route books with electronic route sheets. Driver productivity, service completion, service issues, as well as other route and service information is tracked and updated by route and by customer in real-time. Collection drivers are able to see all stops and service tickets on their touch screen, which can be updated remotely and immediately by route managers while drivers are still on route. This instant information is used to improve service delivery and responsiveness to customer concerns and inquiries. Drivers use their OCS to log completion of each service performed. OCS functionality transforms the way we service customers. In addition to increasing operational and customer service efficiency, it also produces less paper waste resulting in greener operations consistent with the City's Green policy. • WM partnered with the City to host the Newhall Community Center's Recycling Campaign Kick -Off Event. The campaign was a 6 -month long recycling drive in which the kids are encouraged to bring aluminum cans and plastic bottles in orderto reach the goal of 5,000 cans/bottles. In order to kick-off this event, WM displayed a recycling truck, provided three Rocky Raccoon recycling presentations and helped facilitate a "Recycling Relay Race." At the "Awards Ceremony" in May 2012, the Newhall Center revealed the kids had successfully collected over 12,000 cans and bottles as well as set a positive example for friends, family and the Santa Clarita community. Through their efforts, the students earned a foosball table, mini - basketball table and a pizza party. WM is proud to continue our support and partnership with the City of Santa Clarita and the Newhall Community Center and hopes to continue this campaign again in the future. WM has participated in many community and business events each year and has targeted efforts towards increasing diversion, public education, sustainability and community safety. Some highlights of this involvement include the Santa Clarita River Rally, Santa Clarita Earth Arbor Day Celebration, Neighborhood Clean Up Events, Newhall Community Center's Recycling Campaign, local Boy Scout and Girl Scout organizations, sponsorship and support for the Santa Clarita Sheriffs and Fire Boosters, Gibbons Conservancy, the Gentle Barn, Santa Clarita Garden Council, the United Way Poker Tournament, and the City of Santa Clarita Sister Cities Benefit. New Program Offering — WM Residential Recycling Rewards Program: WM is proud to offer the City of Santa Clarita WM's innovative residential recycling rewards program through our partnership with Recyclebank. This program allows residents to earn money saving discounts and coupons at national and local retailers just for simply using their home recycling container. o The WM Residential Recycling Rewards Program In partnership with Recyclebank strengthens community recycling programs while potentially increasing local retail sales tax and business visibility through the offering of local rewards. Similar to a grocery store loyalty program, Recyclebank is a proven incentive program that helps municipalities meet their economic and environmental goals. Even though the City of Santa Clarita is already recycling, supplementing the program with Recyclebank can give your residents and the City added value = which translates into real savings — for doing something that they already want to do. Recyclebank users receive an average of $165 in annual rewards and savings simply by using their residential recycling carts. Revenue Generation Strategy for the City Street Sweeping: As part of previous discussions with City Staff, WM is available to explore options to include street sweeping as part of our franchise agreement. This will allow the City to eliminate current expenses by potentially incorporating street sweeping services into . waste collection fees. The City will also benefit from the synergies of a single point of contact for contract management and coordinated service efforts of waste collection and street sweeping. Pricing and program specifics are available upon request, we look forward to discussing these programs with you further. Rate Memorialization — Extra Trash Cart: As part of previous discussions with City staff, the "Extra Trash Cart" fee detailed in Section 4.1.2 of the Agreement has been overlooked in the standard Annual Rate Adjustment process. WM recommends the adjustment of rates consistent with previously approved Annual Adjustments. Please see the calculations below. Going forward, this rate will be added to the Franchise Rate Sheet upon approval (Exhibit 2). Proposed Rate Effective July 1, 2013: $12.16 Period Increase Extra Trash Cart Rate 01/01/04-04/15/06 n/a $10.00 04/15/06-06/30/07 n/a $10.00 07/01/07-06/30/08 n/a $10.00 07/01/08-06/30/09 3.95% $10.40 07/01/09-06/30/10 0.29% $10.43 7/1/10-06/30/11 3.27% $10.77 07/01/11-06/30/12 4.14% $11.21 07/01/11-06/30/13 3.86% $11.64 07/01/13-06/30/14 4.5% $12.16 29 W As a company, we are dedicated to making a difference for the environment and the unique needs of the communities that we serve. Thank you for your favorable consideration. Sincerely, Sandra Pursley Area Municipal Marketing Manager Waste Management Enclosures: Rate Calculations Distribution: Travis Lange Mark Patti �D N { / | km _Ci CRk rLR M )�J r / !{[/ . 5 \ \ \ \ \ \�/ k A:2 S o LL �\\//& \)-00 ! ;=r®tom \/) f#§§a2 !y§2®( { k . 3](§/) E�@ §|;a)k %§)\«k 3 ` \) g;! eee£{ / §7\);° 2zƒ Co� �G; °3, ! ± z a m / ® k tm / k - . ) CCL 'R 41 - \ - 2 3tr _ U. , ■ ) ) 112 N rvv�-u gMorN� 0 L �c6m ro NOJ O)o or r' C) N N N N N N N N N N N N N r W M r N W N (n N O O N N 0 O U N M O h r [O M N M W f- MMvR V i0Lo. W W. I -n OM O N N N N N N N N N N N N N M N N N N N N N N N N N N N O 4 M N (n N O N N 0 U N m _ (0 f0 UO N p7 O O. N>> N O> OZO�Ii�¢���¢0 F-¢ N N f� r W f� W W W W O) O) O) O) m O) D) O) �O m M M M M M M M M M M M M r M (/j v O r O N N O U W OO D NMI�MMMv N O N W W cD O V N M N W Q) mm 0 W O) N h co w W W O r O N( W ' W O) O) O O O O O O O 0 O N O a m M M Cl) M V V v v v C v V147 W V N O N U X d m w >c a T c m 0zo. L <22»<tnFoQ 32 v O a N N U C CL N J LL N .6 E N Q O U C N u 3'u N N N N N O N N co O O N N O , U 01 N O O O O O O co co 0 co N co N N N N N O N N I O N d O U 0 N N_ N N p 0 0 0 O O O O N N N N N N N N C C T V C U N V v N M V r N M 0000 OC300 � N F Q 3'u rrmm m N (O � r V m I,- m Om r m W M W, m 0 0 O O O r O M th r N � r � r O r O N N O, U �4 �[]rMOOO V' n(PN fnD `r°rn NNNmr NN C r N NNNNN N C Q v m o M rn m r v r m oiWMn Onvim Moi d m m- N N N N N N N O r N V N m Nm r r O r W N vi OV " OJ M' w M r O m m NNNNNN N 2 r M N n r N N r r M n N N Nm t0 m m m N N O t0 m N ON N N N N N OO�GD N N HO W O O O M m W NN r N N N N N N N M O r O N m N N r N N O N r m W N N NNNNNN N N N W r m n M W r 1 Ir W r O M V' m W m 7 M O r W M cl N O m j m N N N N N N N 7 M tVm. pS V. m M N r W M W W �— I N N NNNNN N Cr OR n W M N d W y V fV [V 6 m W W Q r N N NNN N N d � OI Q •L r R m m O r M r O n W m N N Y 1 d �voi � c ` r1: oiv 7 w yi 'I N N Q y W r W moo r N r N N N N N N Q 0 V LL d C c N :+ N z R R m vmiv 9 r E E Ta. a roi�mp v�c6Wvoi m m W m�ON � C , r Ni N C N a V y r N N N N N N N t V N d Q X M a an O r d C O U 6 O m W N N O V C o N R U V tmp trp d i m >> N L s{p t0 o7 inmW OO� mN d i (ND 8 y 9 a O 'IN Ni Ni L m Y O O N M ' N N N N N N N W O N d m N y d C N V! 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Exhibit "2" of the Agreement, entitled "Initial Maximum Rates" shall be amended to contain the following maximum rates starting on the rate year commencing July 1, 2012, and ending June 30, 2013: Standard Service Rate $19.39 per month Reduced Rate for no Greenwaste services $17.39 per month Reduced Rate for Super Saver/Senior/Lifeline Customers $15.51 per month Mobile Home Service Rate $14.55 per month The Multi -Family rates will be as follows: Container Costs Street Litter Carts Number of Weekly Pickups Restart Charge $17.48 Refuse Overage Extra Pick-up Size 1 2 3 4 Extra Bulky Item Pickup 5 6 7 Extra Bin Empties 1.5 yd' $58.451 $116.92 $175.36 $233.80 Emergency Services $292.25 $350.72 $409.16 Pre ayment Discount 2 yd3 $62.311 $124.60 $186.91 $249.22 $311.51 $373.80 $436.11 3 yd3 $70.021 $139.98 $210.00 $280.00 $349.98 $419.98 $489.99 4 yd3 $77.681 $155.40 $233.07 $310.76 $388.46 $466.17 $543.84 Special Services Costs Street Litter Carts $17.19 per set per month Restart Charge $17.48 Refuse Overage Extra Pick-up $5.84 per pickup Locking Bin $11.67 per bin per month Bulk Billing Discount 8% Extra Bulky Item Pickup $23.32 per pickup Additional Bin Cleanings $40.81 per cleaning Extra Bin Empties $40.81 er empty Compactor Rates 2x comparable bin rate Late Fees 1.50% per month Emergency Services $81.64 per hour Manure Collection 100% of comparable multifamily bin refuse rat Pre ayment Discount 10ne Month Free with I1 month prepaid 3_1 Base Rate Increase Factor 2.51% Addtitional Factor 1.50% Total Rate Increase Factor 4.01% o SECTION 1. Exhibit "2" of the Agreement, entitled "Initial Maximum Rates" shall be amended to contain the following maximum rates starting on the rate year commencing July 1, 2013, and ending June 30, 2014: Standard Service Rate $20.26 per month Reduced Rate for no Greenwaste services $18.26 per month Reduced Rate for Super Saver/Senior/Lifeline Customers $16.21 per month Mobile Home Service Rate $15.20 per month Residential Extra Trash Cart Rate $12.16 per month The Multi -Family rates will be as follows: Container Costs Street Litter Carts Number of Weekly Pickups Restart Charge $18.27 Refuse Overage Extra Pickup $6.10 per pickup Size 1 2 3 4 5 Additional Bin Cleanings 6 Extra Bin Empties 7 1.5 yd' $61.08 $122.18 $183.25 $244.32 $305.40 Manure Collection $366.50 Prepayment Discount $427.57 2 yd' $65.11 $130.21 $195.32 $260.43 $325.53 $390.62 $455.73 3 yd' $73.17 $146.28 $219.45 $292.60 $365.73 $438.88 $512.04 4yd' $81.18 $162.39 $243.56 $324.74 $405.94 $487.15 $565.31 Special Services Costs Street Litter Carts $17.96 per set per month Restart Charge $18.27 Refuse Overage Extra Pickup $6.10 per pickup Locking Bin $12,20 per bin per month Bulk Billing Discount 8% Extra Bulky Item Pickup $24.37 per pickup Additional Bin Cleanings $42.65 er cleaning Extra Bin Empties $42.65 per empty Compactor Rates 2x comparable bin rate Late Fees 1.50% per month Emergency Services $85.31 per hour Manure Collection 100% of comparable multifamily bin refuse rat Prepayment Discount One Month Free with 1 I month prepaid bq Base Rate Increase Factor 212200 Addtitional Factor 2Total Rate Increase Factor 4 a SECTION 1. Exhibit "2" of the Agreement, entitled "Initial Maximum Rates" shall be amended to contain the following maximum rates starting on the rate year commencing July 1, 2011, and ending June 30, 2012: Standard Service Rate $18.64 per month Reduced Rate for no Greenwaste services $16.64 per month Reduced Rate for Super Saver/Senior/Lifeline Customers $14.91 per month Mobile Home Service Rate $13.99 per month The Multi -Family rates will be as follows: Container Costs Street Litter Carts $16.53 per set per month Number of Weekly Pickups Refuse Overage Extra Pickup Size 1 2 Bulk Billing Discount 3 Extra Bulky Item Pickup 4 Additional Bin Cleanings 5 6 1.5 yd' $56.19 $112.41 Late Fees $168.60 Emergency Services $224.79 Manure Collection $280.98 $337.19 2yd' $59.91 $119.79 $179.70 $239.62 $299.50 $359.39 3 yd' $67.32 $134.58 $201.91 $269.20 $336.49 $403.79 4 yd' $74.69 $149.41 $224.09 $298.78 $373.49 $448.20 Special Services Costs Street Litter Carts $16.53 per set per month Restart Charge $16.81 Refuse Overage Extra Pickup $5.61 per pickup Locking Bin $11.22 per bin per month Bulk Billing Discount 8% Extra Bulky Item Pickup $22.42 per pickup Additional Bin Cleanings $39.24 per cleaning Extra Bin Empties $39.24 per empty Compactor Rates 2x comparable bin rate Late Fees 1.50% per month Emergency Services $78.49 per hour Manure Collection 100% of comparable multifamily Prepayment Discount One Month Free with 11 month prepaid �_l 7 $393.39 $419.30 $471.10 $522.88