2010/05/25 City Council Resolution 2010-58RESOLUTION NO. 2010 -58
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK
AUTHORIZING AND APPROVING FIRST AMENDMENT TO AMENDED AND
RESTATED AGREEMENT BETWEEN THE CITY OF ROHNERT PARK AND
ROHNERT PARK DISPOSAL, INC. FOR REFUSE, RECYCLABLE MATERIALS,
COMPOSTABLE MATERIALS AND STREET SWEEPING SERVICES
WHEREAS, on May 29, 2001 the City of Rohnert Park ( "City ") and Rohnert Park
Disposal, Inc., ( "Contractor ") entered into an agreement for the Collection, Transportation, and
Processing of Refuse, Recyclable Materials, and Compostable Materials, and for the provision of
Street Sweeping Services ( "Original Agreement ");
WHEREAS, on July 1, 2008, the Original Agreement was Amended and Restated; and
WHEREAS, City and Contractor desire to amend the July 1, 2008 Amended and
Restated Agreement in order to, among other things, include an adjustment to the current term,
an option to extend the term, include portable toilet service, and require Contractor to make
additional payments to the City.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert
Park that it hereby authorizes and approves the First Amendment to Amended and Restated
Agreement between the City of Rohnert Park and Rohnert Park Disposal, Inc. for Refuse,
Recyclable Materials, Compostable Materials and Street Sweeping Services attached hereto as
Exhibit "A."
BE IT FURTHER RESOLVED that the City Manager is hereby authorized and directed
to execute documents pertaining to same for and on behalf of the City of Rohnert Park.
DULY AND REGULARLY ADOPTED this 25th day of May, 2010.
19
ATTEST:
�� City Clerk
t20HNERT Pe..
CITY OF ROHNERT PARK
FIRST AMENDMENT TO AMENDED AND RESTATED AGREEMENT
BETWEEN THE CITY OF ROHNERT PARK AND ROHNERT PARK
DISPOSAL, INC. FOR REFUSE, RECYCLABLE MATERIALS,
COMPOSTABLE MATERIALS AND STREET SWEEPING SERVICES
WHEREAS, on May 29, 2001 the City of Rohnert Park ( "City ") and Rohnert Park
Disposal, Inc., ( "Contractor") entered into an agreement for the Collection, Transportation, and
Processing of Refuse, Recyclable Materials, and Compostable Materials, and for the provision
of Street Sweeping Services ( "Original Agreement ");
WHEREAS, on July 1, 2008, the Original Agreement was Amended and Restated;
WHEREAS, City and Contractor desire to amend the July 1, 2008 Amended and
Restated Agreement in order to include an adjustment to the current term, an option to extend
the term, include portable toilet service, and require Contractor to make additional payments to
the City; and
WHEREAS, this Amendment to Amended and Restated Agreement is made: and
entered into effective the day of , 2010, by and between the City of Rohnert Park and
Rohnert Park Disposal, Inc., a California corporation;
Now, therefore, in consideration of the mutual covenants, agreements and
consideration contained herein, CITY and CONTRACTOR hereby agree as follows:
Section 3.3 Term is amended by incorporating the following new text in bold format and
deleting text in strikeout format:
3.3 Term
The initial Term of this Agreement shall begin July 1, 2008, and end at midnight June 30, 2020.
. This Amendment extends the Term to
June 30, 2020.
Section 3.4 Option to Extend Term is replaced in its entirety with the following:
3.4 Option to Extend Term.
At Contractor's written request, on or about July 1, 2018, provided the City determines that the
Contractor has met the minimum performance and diversion requirements, as set forth in
Section 3.5, the City shall within twenty (20) Work Days offer the Contractor in writing a five (5)
year extension of this Agreement. Contractor shall provide written notice to City as to whether
Contractor accepts or rejects City's offer within twenty (20) Work Days of the date of the offer. If
Contractor fails to provide such notice to City within said twenty (20) Work Days, City's offer.
shall be deemed withdrawn and City shall have no obligation to extend the term of • this
Agreement beyond June 30, 2020. If the term of this Agreement is extended, the compensation
provisions of Article 8 shall not be subject to negotiation. However, the compensation payable
to Contractor shall be adjusted annually throughout the extended term as provided in Article. 8.
EXHIBIT A
First Amendment Between the City of Rohnert Park and Rohnert Park Disposal, Inc.
Dated , 2010
Article 3, Term of Agreement, is amended by adding Subsection 3.4.1, Voiding of
Extension, with the following new text in bold format:
3.4.1 Voiding of Extension.
In the event City determines that Contractor fails to meet the minimum service and
diversion requirements set forth in Section 3.5 or is in breach of any other provisions of
this Agreement, Contractor understands and agrees that the service extension set forth
in Section 3.4 above is voided and that this Agreement shall terminate on June 30, 2020.
Article 3, Term of Agreement, is amended by adding Subsection 3.4.2, Conditions for
Granting Extension(s), with following new text in bold format:
3.4.2 Conditions for Granting Extension(s)
In order to receive the Agreement term extension offers set forth in Article 3 of this
Agreement, the Contractor must meet or exceed the following annual minimum
performance and diversion standards in each Contract Year beginning January 1, 2010
as determined by City.
Article 3, Term of Agreement, is amended by adding Subsection 3.4.3, Performance
Standards, with following new text in bold format:
3.4.3 Performance Standards.
Assessment of administrative charges, as set forth in Section 11.5 of this Agreement of
less than $50,000 in each Agreement Year beginning January 1, 2010.
Article 3, Term of Agreement, is amended by adding Subsection 3.4.4, Minimum Diversion
Standards, with following new text in bold format:
3.4.4 Minimum Diversion Standards,
The City requires the Contractor to achieve a minimum annual diversion rate of forty -five
percent (45 %) for each Agreement Year. The annual diversion rate will be calculated as
"the tons of materials collected by the Contractor under the terms of this Agreement that
are sold or delivered to a recycler or reuser, as required by this Agreement, divided by
the total tons of materials collected in the Agreement Year." The City may determine in
its sole discretion that Contractor's failure to meet the minimum diversion requirements
constitutes Contractor's default of this Agreement or the City may impose administrative
charges on Contractor as set forth in Section 11.5 of this Agreement.
Section 5.6 City Facilities and Events Collection is amended by incorporating the following
new text in bold format:
Contractor shall provide containers and collection of Refuse, Recyclable Materials � and
Compostable Materials to all City facilities identified in Exhibit A. Contractor shall also provide
collection of Refuse disposed of in City -owned cans located throughout the City. Contractor
shall provide Refuse, Recycling Materials and Compostable Materials services for special
events as set forth in Exhibit C. The size of the bin or cart and the frequency of Collection shall
be determined between the City and Contractor. Compostable Materials services are required
only at the Department of Public Works, where all City Compostable Materials are deposited.
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First Amendment Between the City of Rohnert Park and Rohnert Park Disposal, Inc.
Dated , 2010
The services required by this section shall be provided at no charge to the City, but the cost of
providing such service shall be an allowable expense under Article 8.
Contractor shall also provide portable toilet service in City's parks and other City
facilities on a schedule and frequency as agreed on between the City and Contractor.
Contractor shall provide portable toilet service at no cost to the City and the cost of
providing such service shall not be an allowable expense under Article 8.
Subsection 5.13.4. City's Supplemental Education "A" and 'B" is amended by
incorporating the following new text in bold format and deleting text in sit format:
5.13.4 City's Supplemental Education
A. The City will include an annual budget of $25,000 in the Contractor's Payment for Services
to fund supplemental education program(s);. The use of these funds shall not be restricted
and may be used for solid waste related programs such as an annual E -Waste event, and a.
variety of ads and /or concise articles that, upon request by City, are to be written and placed in
the Community Voice by Contractor. This annual budget will be added on as a pass- through of
diversion fees to the cost presented and will be funded from Refuse rates.
1. Annually, the City and Contractor will agree on one or more supplemental education
programs that target large generators of waste. For example, supplemental programs may
include, but not be limited to, augmenting source reduction and Recycling practices among
those generators known to contribute significant levels of divertable materials to landfills or
generators known to contaminate Garbage and /or Recycling. Contractor shall report progress,
problems encountered, actions taken, and recommendations for future actions quarterly.
2. Contractor shall organize and manage an annual E -Waste event with a certified E-
Waste recycler. Contractor's responsibilities shall include, but not be limited to: (a) initiating
contact with a certified E -Waste recycler; (b) establishing a date and time for the event that is
acceptable to both the City and certified E -Waste recycler; (c) working with City staff to secure a
location for the event; (d) working- with certified E -Waste recycler to secure adequate staffing
and transportation of E- Waste; and (e) coordinating all activities through the event to ensure its
success. Contractor shall be responsible for ensuring that the total number of pounds collected
at the event is reported to the City within 60 days of the event.
3. Contractor shall place ads in the Community Voice for Christmas Tree Collection
Services, Christmas Recycling Services, the Curbside Community Clean -up Events, the annual
E -Waste Event and other events as requested by City. At the request of City staff, Contractor
shall generate 2 -3 brief educational articles for publication in the Community Voice (e.g.,
Composting leaves in the fall, proper disposal of medications). The content for these articles
may be taken directly from Contractor's bi- annual newsletter if previously published and
approved by the City.
B: Annually, the City shall set -aside $25,000 for special projects that will enhance source
reduction and recycling education. The use of these funds shall not be restricted and may
be used by the City for solid waste related programs such as The Gity .Ray to hire an
educational contractor to conduct additional education and outreach to support multi - family and
commercial Recycling programs. This annual budget will be added on as a pass- through of
diversion fees to the cost presented and will be funded from Refuse rates.
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First Amendment Between the City of Rohnert Park and Rohnert Park Disposal, Inc.
Dated , 2010
C. Annually, the City shall set -aside $10,000 for enforcement activities. The City will utilize its
Code Enforcement Officer to initiate and carry-out corrective measures to address non-
compliance with the Rohnert Park Municipal Code; to enforce our contractual obligation to our
Contractor that grants them exclusivity in the collection, hauling, and disposal of all refuse,
recyclable materials and compostable materials; and to monitor the activities of Contractors
granted a franchise for the provision of Temporary Debris Box services. This annual budget will
be added on as a pass- through of diversion fees to the cost presented and will be funded from
Refuse rates.
Section 7.1 Franchise Fee, AB 939 and Other Fees is amended by incorporating the
following new text in bold format:
7.1 Franchise Fee
In consideration of the rights provided Contractor herein, Contractor shall pay to City ten (10)
percent of Gross Revenues derived by Contractor from services provide in City under this
Agreement. This fee may be adjusted by City by resolution. The City, in its sole discretion,
may increase the Franchise Fee by up to one percent (1 %) and Contract Administration
Fee by up to one percent (1 %). Such adjustment shall be reflected in the rates that the�City
charges and collects from Generators.
The Franchise Fee shall be included in Refuse rates set by the City Council and shall be
deducted by City monthly from revenues received from customers, prior to payment to
Contractor for services from the remaining customer revenues. With each monthly remittance
to Contractor for services, City shall provide a detailed statement showing Gross Revenues
billed and the calculation of the Franchise Fee amount retained by City.
Article 7. Franchise Fee, AB 939 and Other Fees is amended by adding Section. 7.5
Franchise Extension Fee with following new text in bold format:
7.5 Franchise Extension Fee
CONTRACTOR shall pay Three Hundred Thousand Dollars ($300,000.00) to the CITY.
Payment shall be due within thirty (30) days upon execution of the extension of the
Agreement.
Article 7. Franchise Fee, AB 939 and Other Fees is amended by adding Section 7.6
Additional Contractor Payments to the City with following new text in bold format:
7.6 Additional Contractor Payments to City
The Contractor shall be responsible for all costs associated with preparing amendments
to this Agreement. Contractor shall also be responsible for all costs associated with
analysis of customer rates and contractor compensation as determined to be necessary
by the City and the Contractor. The analysis will be performed under contract with the
City by a qualified firm selected by the City.
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First Amendment Between the City of Rohnert Park and Rohnert Park Disposal, Inc.
Dated , 2010
IN WITNESS WHEREOF, City and Contractor have executed this First Amendment to
Agreement on the respective date(s) below each signature.
ROHNERT PARK DISPOSAL, INC
James R. Salyers Date
Vice President
John Dunn Date
Interim City Manager
Attest:
CITY OF ROHNERT PARK
Judy Hauff Date
City Clerk
The foregoing Agreement has been reviewed and approval is recommended:
Resolution No. 2010 -
Approved by City Council
APPROVED AS TO FORM:
City Attorney Date
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