HomeMy WebLinkAbout11/14/2007 - STAFF REPORTS - 5.C. AMENDMENT ONE
TO
SOLID WASTE MANAGEMENT SERVICES AGREEMENT
IMPLEMENTING A SINGLE STREAM RECYCLING PROGRAM
(Agreement No. )
THIS AMENDMENT ONE to the Solid Waste Management Services Agreement(the
"Agreement"), is made and entered into to be effective on the 14t day of November, 2007,
by and between the City of Palm Springs, a California charter city and municipal corporation
(hereinafter referred to as the "City"), and Palm Springs Disposal Services, a California
corporation (hereinafter referred to as the "Contractor") (collectively, the "Parties").
RECITALS
A. City and Contractor previously entered into the Agreement, which granted
Contractor a franchise and giving Contractorthe right and duty to collect, transfer,transport,
recycle, process and dispose of solid waste and recyclable material accumulating within the
City.
B. Section 14.02 of the Agreement provides that it may be amended at anytime
with the mutual written consent of the Parties.
C. City and Contractor desire to amend the Agreement to institute a new program
for Single Stream Recycling.
NOW, THEREFORE, in consideration of the mutual promises and covenants
contained herein, the Parties agree as follows:
AGREEMENT
Section 1. Amendment to Scope of Regular Collection Services. Section G is added to
Exhibit D of the Agreement to read:
G. Single Stream Recycling Program.
1. Establishment of Program. Notwithstanding the provisions of Sections A or
B of this Exhibit D, Contractor shall provide unlimited collection of commingled Recyclables
at curbside once per week and transport such Recyclables to the Processing Facility or
Facilities in accordance with this Agreement, including Article 4 thereof, and the provisions of
this Section G of Exhibit D. Commencing no later than July 1, 2008, Contractor shall convert
the existing two-bin collection system to a Single Stream Program for all residential and
Commercial customers receiving individual Solid Waste Bin pick-up, Contractor shall
provide each such Customerwith recycling containers.The Recyclables shall be collected on
the same day as Solid Waste collected under Sections Al and B1 of this Exhibit D using
manual Collection Vehicles. Contractorshall commence such Services no laterthan July 1,
2008.
Under the Single Stream Program, Contractor will provide each customer address with a
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single 64-gallon * plastic Solid Waste Bin with wheels and hinged lids attached. The Single
,Stream Program shall permit customers to commingle all recyclable materials into one Solid
Waste Bin.
Contractor shall purchase collection vehicles capable of collecting the contents of the Single
Stream Program Solid Waste Bins. Collection will occur once weekly at curbside.
Customers subscribing to Backyard Collection service may also subscribe to Backyard
Collection of recyclables at an additional fee established pursuant to the provisions of this
Agreement or as may otherwise be approved by the City Council. Contractor shall only be
required to collect recyclables fully contained within the Single Stream Solid Waste Bin.
Customers requiring additional capacity may subscribe for an additional bin at an additional
cost, however additional bins will not be distributed during the first thirty days of the program
in order to provide customers adequate time to adjust to the new program and its enhanced
capabilities.
Contractor shall endeavor to complete the conversion to the Single Stream System
according to the following performance schedule, subject to the availability of vendor
products and services,
Single Stream Program Performance Schedule
Performance Date
Task (Expressed in calendar days
following City Council approval-
11/14-07
Order collection 45 days
vehicles
Design of informational
packets (Contractor 120 days
role is to assist City
Staf
Order bins 120 days
Receive collection 180 days
vehicles
W Print informational 180 days
packets
Receive and assemble 180 — 210 days
bins
Outfit and road test
vehicles, train operators 210 Lays
Deliver bins third art 210 -- 224 days
Commence program 217 -- 230 days
2. Single Stream Recycling. Program Grant.
(a) GRANT. To facilitate Contractor's conversion to the Single Stream Recycling
Program and to avoid increased costs to Residential customers, City agrees to make a one
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time capital equipment grant to Contractor of no more than TWO MILLION DOLLARS
($2,000,000.00)from City's Recycling Fund. This grant will be used to cover the anticipated
cost of three (3) recycling collection vehicles, three (3) scout vehicles, and approximately
17,200 64-gallons (approximate size), injection molded, plastic recycling bins, and all such
vehicles and equipment shall be used solely and exclusively for the provision of services to
addresses within the City of Palm Springs, This grant will be paid to Contractor based on
actual expenses incurred up to the maximum amount established above.
(b) EQUIPMENT DESIGN. Contractor reserves sole authority regarding decisions
of design, manufacture, support, and selection of all equipment purchased under this grant.
Contractor also accepts sole responsibility to maintain, repair, and replace all equipment as
needed throughout the duration of the Term of this Agreement and any extensions or
renewals thereto-
(c) NO COST TO CUSTOMERS. Implementation of the Single Stream Recycling
Program as provided for herein shall not result in an increase to Customer rates for
Customers converting from the existing two-bin collection system to the Single Stream
Recycling Program system.
Section 2. Full Force and Effect. This Fist Amendment is supplemental to the Agreement
and is by reference made part thereof. All of the terms, conditions, and provisions, of the
Agreement, unless specifically modified herein, shall continue in full force and effect, In the
event of any conflict or inconsistency between the provisions of this Amendment and any
provisions of the Agreement, the provisions of this Amendment shall govern and control.
Section 3. Corporate Authority. The persons executing this Amendment on behalf of the
Parties hereto warrant that (1) such party is duly organized and existing, (ii) they are duly
authorized to execute and deliver this Amendment on behalf of said party, (iii) by so
executing this Amendment, such party is Formally bound to the provisions of this
Amendment, and (iv) the entering into this Amendment does not violate any provision of any
other agreement to which said party is bound.
[SIGNATURE PAGES FOLLOWS]
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IN WITNESS WHEREOF, the Parties have executed and entered into this First
Amendment as of the date first written above.
,,CITY"
CITY OF PALM SPRINGS,
a California charter city and municipal
ATTEST: corporation
By, By:
James Thompson, City Clerk David H. Ready, City Manager
APPROVED AS TO FORM:
By-
Douglas H, Holland, City Attorney
[SIGNATURES CONTINUED ON NEXT PAGE)
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"CONTRACTOR"
PALM SPRINGS DISPOSAL SERVICES
a California corporation
CONTRACTOR: Check one: _Individual_Partnership Corporation
Corporations require two notarized signatures: One from each of the following: (A)
Chairman of the Board, President, or any Vice President, AND (B) Secretary, Assistant
Secretary, Treasurer, Assistant Treasurer, or Chief Financial Officer.
By: By:
Signature (notarized) Signature (notarized)
Name: Name.
Title: Title:
State of California State of California
County of County of
On before me, On before me,
personally appeared personally appeared
personally known to me (or proved to me personally known to me (or proved to me
on the basis of satisfactory evidence) to on the basis of satisfactory evidence) to
be the person(s) whose name(s) istare be the person(s) whose name(s) is/are
subscribed to the within instrument and subscribed to the within instrument and
acknowledged to me that he/she/they acknowledged to me that he/she/they
executed the same in his/her/their executed the same in his/her/their
authorized capacity(ies), and that by authorized capacity(ies), and that by
his/her/their signature(s) on the his/her/their signature(s) on the
instrument the person(s), or the entity instrument the person(s), or the entity
upon behalf of which the person(s) acted, upon behalf of which the person(s) acted,
executed the instrument. executed the instrument.
WITNESS my hand and official seal, WITNESS my hand and official seal.
Notary Signature: Notary Signature:
Notary Seal: Notary Seal:
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4�/FORN�Pn City Council Staff Report
DATE: November 14, 2007 NEW BUSINESS
SUBJECT: APPROVE AMENDMENT NO. 1 TO SOLID WASTE MANAGEMENT
AGREEMENT WITH PALM SPRINGS DISPOSAL SERVICES TO
IMPLEMENT A SINGLE STREAM RECYCLING PROGRAM
FROM: David H. Ready, City Manager
BY: Assistant City Manager—Administrative Services
The City has entered into an agreement with Palm Springs Disposal Services to collect,
transfer, transport, recycle, process and dispose of solid waste and recyclable material
accumulating within the City. This agreement allows for changes in service, including
implementation of new programs and/or the modification of existing terms and
conditions. The City Council recently approved a grant of $2 Million to Palm Springs
Disposal Services to facilitate the purchase of vehicles and equipment that will be
needed to implement a new single stream recycling program. This action amends the
existing franchise agreement to allow for a change in services to accommodate the new
recycling program.
RECOMMENDATION:
1, Approve Amendment No. 1 to the Solid Waste Management Agreement with
Palm Springs Disposal Services instituting a new program for single stream
recycling.
2. Authorize the City Manager to execute the appropriate documents.
STAFF ANALYSIS:
In 2003, the City Council approved an agreement with Palm Springs Disposal Services
for the collection, transportation and disposal of solid waste and recyclable materials
from residential, commercial and industrial locations within the City. The term of this
agreement was initially set for 11 years, expiring in 2014, with an option to extend the
term of the agreement for an additional four year term, expiring in 2018, at the City's
discretion.
Item 5 . C .
Amendment No. 1 to Solid Waste Management Services Agreement
November 14, 2007
Page 2 of 2
The City's agreement with Palm Springs Disposal Services allows for changes in
service, including implementation or new programs and/or the modification of existing
programs. Recently, the City Council directed staff to prepare an amendment to the
agreement requiring Palm Springs Disposal Services to implement a single stream
recycling program for residential customers.
The attached Amendment No. 1 amends the existing agreement with Palm Springs
Disposal Services adding the single stream recycling program to the scope of regular
collection services offered to residential customers at no additional cost. Under the
proposed amendment, Palm Springs Disposal Services is required to replace the
existing two-bin recycling program with the new single stream recycling program by July
1, 2008. In addition, the proposed amendment memorializes the grant the City Council
recently approved to Palm Springs Disposal Services to purchase the vehicles and
equipment necessary to implement the new recycling program.
On October 2Wh, the City's Finance Subcommittee, consisting of Mayor Oden and
Council Member McCulloch, met with Palm Springs Disposal Services and City staff to
discuss the proposed modifications to the existing agreement. The Finance
Subcommittee has reviewed the proposed modifications to the agreement and is
referring the attached amendment to the City Council for their consideration.
FISCAL IMPACT:
The City Council has previously adopted a resolution approving a $2 Million grant to
Palm Springs Disposal Services to purchase the necessary vehicles and equipment to
implement the single stream recycling program. Hence, per Palm Springs Disposal
Services, there are no additional costs to the rate payers or the City for conversion to
this recycling program. Any future rate increases will be in accordance with contract
provisions.
Tro . Butzla s istant City Manager David H. Ready, C�-]i er
Attach ents:
1. Amendment No. 1
November 7, 2007
Item 5.C.
Solid Waste Management
Amendment No. 1 to follow