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HomeMy WebLinkAbout2014-029-A2 North SLO County Recycling (Approved 2019)Ab�L. 9. JAI - - - _4 FIRST AMENDMENT TO AGREEMENT FOR SERVICES OF INDEPENDENT CONTRACTOR PROCESSING COMMINGLED RECYCLABLES AND GREENWASTE This First Amendment to Agreement for Services of Independent Contractor Processing Commingled Recyclables and Organic Waste (hereafter "First Amendment") is effective as of March 1, 2019, by, and between North San Luis Obispo County Recycling Inc., (hereinafter referred to as "CONTRACTOR"), and the City of Atascadero, a Municipal Corporation, (hereinafter referred to as "CITY"). RECITALS WHEREAS the CITY and CONTRACTOR are parties to that certain Agreement for Services of Independent Contractor Processing Commingled Recyclables and Greenwaste (the "Existing Agreement") dated December 10, 2014, which was approved by the CITY Council; and WHEREAS CITY and CONTRACTOR desire to amend the Existing Agreement, as set forth herein with all other provisions of the Existing Agreement still in full force and effect; and WHEREAS, to address the changing market and contamination rates CITY and CONTRACTOR desire to amend the Existing Agreement, as set forth herein with all other provisions of the Existing Agreement still in full force and effect; and WHEREAS, this Amendment has been developed by and is satisfactory to the parties. THEREFORE, the parties hereto, in consideration of the mutual covenants contained herein, hereby agree to the following terms and conditions: 1. The title of the Existing Agreement is amended as follows: Agreement for Services of Independent Contractor Processing Commingled Recyclables and Organic Waste." 2. Section 1.03, EXTENSION, of the Existing Agreement is deleted in its entirety. 3. Section 3.01, COOPERATION, of the Existing Agreement is deleted in its entirety and replaced with the following. 1 "Upon notification by the CONTRACTOR that the facility in Templeton is ready to receive material, CITY agrees to direct its franchised waste hauler to delivery for processing commingled recyclables and organic waste to the CONTRACTOR. The franchised waste hauler or any other party shall not remove any recyclables from the commingled recyclables prior to delivery of the commingled recyclables to the CONTRACTOR. Commingled recyclables include the following: paper products (newspaper, magazines, mail, office paper, telephone books, cardboard, chipboard, etc.), plastic (soda bottles, milk and water jugs and other rigid plastic containers with number 1 through 7 plastic), glass (food and beverage containers), cans (aluminum cans, tin cans, aluminum foil, metal food trays). CONTRACTOR will make good faith efforts to recycle all these products, however if there is no longer a market for any of these items in the future they will become residual. CITY and CONTRACTOR agree to arbitrate any disagreement regarding marketability of any of these items with the Integrated Waste Management Authority. The density of the commingled recyclables delivered to the CONTRACTOR shall not exceed 375 pounds per cubic yard. Greenwaste includes grass clipping, leaves, weeds, brush, non treated wood, Christmas trees and branches collected in greenwaste containers. Food waste includes animal, fruit or vegetable matter that results from the preparation, consumption, decay, dealing in or storage of meats, fish, fowls, fruits or vegetables. Organic waste includes both greenwaste and food waste which may be collected separately from one another. The franchised waste hauler may deliver food waste from residential customers as part of greenwaste and pursuant to AB 1826, the franchised waste hauler will deliver food waste from certain identified commercial customers separately." 4. Section 4.00, TERMINATION OF AGREEMENT, of the Existing Agreement is amended to add the following: 4.04 BY CITY As detailed in Section 5.6 below, CONTRACTOR must provide CITY written request for an annual rate adjustment and provide all supporting documents for the adjustment calculation to CITY by January 10, 2020. CITY will review die written request and, if the CITY determines, in its sole discretion, that the annual rate adjustment is not acceptable, CITY has the right to terminate this Agreement by giving written notice of termination to the CONTRACTOR on or before February 1, 2020 with termination effective March 1, 2020. 5. Section 5.06, RATE ADJUSTMENT, of the Existing Agreement is amended to delete CPI Adjustment in its entirety and replace with the following: CPI Adjustment Commencing on January 1, 2020, the rates set forth in Exhibit B shall be automatically adjusted by a percentage equal to 70% of the annual percent change in the Consumer Price Index ("CPIU") for All Urban Consumers - All Items, for the Los Angeles - Long Beach - Anaheim metropolitan area (1982-84 = 100) as published by the Bureau of Labor 2 Statistics for the 12 -month period ending September 30. At least (30) days prior to January 1, 2020., CITY will notify CONTRACTOR of the CPI adjustment to take effect on January 1, 2020 and shall provide CONTRACTOR with its computation therefore. Section 5.06, RATE ADJUSTMENT, of the Existing Agreement is further amended to add the following: Annual Rate Adjustment The rates set by this Agreement are calculated to pay certain expenses and costs that are of a contingent and uncertain nature. Therefore, in addition to the CPI adjustment and extraordinary rate adjustment provisions above, the rates under this Agreement shall, upon written request of CONTRACTOR subject to review by CITY, be further adjusted as of March 1, 2020 for decreased change in income associated with performance of the services hereunder due to material changes in mixed waste paper and OCC cardboard market conditions. The material changes in the market condition must equal a loss greater than 4 percent for any increase to be effective. Adjustment Calculation All supporting documentation for the adjustment calculation will be provided to CITY by January 10, 2020. The adjustment will be calculated as follows: OCC change= K$94.92 - 2019OCC) x OCCtonsl 2019tons Mixed Paper change= L($-13.27 - 2019MP) x MPtonsl 2019tons The following definitions apply: $94.92= 2018 OCC weighted average sales price as determined by taking the total OCC revenue earned divided by the total OCC tons sold for the period of 7/1/18 through 12/31/18 2019OCC= 2019OCC weighted average sales price as determined by taking the total OCC revenue earned divided by the total OCC tons sold for the period of 7/1/19 through 12/31/19 2019Tons= total Atascadero recycling tonnage tipped at the NCR facility during 7/1/19 through 12/31/19 $-13.27= 2018 Mixed paper weighted average sales price as determined by taking the total Mixed paper revenue earned divided by the total Mixed paper tons sold for the period of 7/1/18 through 12/31/18 2019MP= 2019 Mixed paper weighted average sales price as determined by taking the total Mixed paper revenue earned divided by the total Mixed paper tons sold for the period of 7/1/19 through 12/31/19 OCCtons= 21.5% of 2019Tons MPtons= 27.5% of 2019Tons The OCC change and the Mixed paper change will be added to the tipping fee rate for residential and commercial processing costs in Exhibit B, section B "Payment Arrangements". 7. Exhibit A and Exhibit B of the Existing Agreement are deleted in their entirety and replaced as attached. IN WITNESS WHEREOF, the partied have executed this First Amendment to be effective on the date executed by CITY. CITY OF ATASCADERO Rachelle Rickard City Manager Date: 34 ULq_ ATT B: ___ _ _ __ Lara . Chris en C' Clerk APPROVED AS TO FO By: -- Brian A. Pierik CONTRACTOR: Date: no' 4 EXHIBIT A: SCOPE OF SERVICES PROCESSING AND MARKETING OF COMMINGLED RECYCLABLES AND ORGANIC WASTE 1. Processing A The CONTRACTOR shall supply all labor and equipment necessary to receive, process and market all commingled recyclables and organic waste resulting from this contract. For purposes of this Agreement, "commingled recyclables" and "organic waste" are defined as all material delivered to the CONTRACTOR's facility located at 3360 La Cruz Way, Templeton California, collected pursuant to the CITY's source separated residential and commercial recycling, greenwaste, and food waste programs. Organic waste is comprised of greenwaste and food waste, which may be collected separately from one another. Clean separated cardboard collected from commercial customers in the CITY is not included in commingled recyclables. CONTRACTOR shall divert all commingled recyclables and organic waste in a manner that is acceptable for diversion credit under AB939. CONTRACTOR shall not landfill, burn or convert for burning the materials diverted, unless otherwise authorized by CITY in writing. B. The CONTRACTOR shall receive and process commingled recyclables and organic waste without limitation as to amount, weight or periodic variances in quantity generated. The exact quantity, quality, mix or percentage of recyclables and organic waste to be delivered under the contract cannot be guaranteed. C. All residual from CITY delivered commingled recyclables and organic waste shall be delivered and disposed of in accordance with all existing and future CITY, county, state and federal laws and regulations at a CalRecycle permitted solid waste facility during the term of this contract. 1. If the CONTRACTOR delivers Garbage to a landfill which does not collect the San Luis Obispo County AB 939 Tipping Fee Surcharge and Waste Management Program Fund Fee, pursuant to County Resolution No. 90-383, the CONTRACTOR will make, on a monthly basis, the equivalent payment directly to the County's Waste Management Tipping Fee - AB 939 Trust Fund #0159 and Waste Management Tipping Fee Trust - Site Fund # 0160. 2. Payment of the equivalent fees shall be made to County within thirty (30) days after the end of each calendar month, or prorated portion thereof, in which the CONTRACTOR delivers waste to an alternate facility. In the event that Payment is not received by County within thirty (30) days after the date specified, then CONTRACTOR shall pay a penalty of ten percent (10%) on the outstanding balance, and CONTRACTOR shall also pay to County interest on the outstanding balance at a rate of ten percent (10%) per annum, or the maximum legal rate of interest, whichever is greater, from the date of CONTRACTOR's failure to pay. 5 3. As of March 1, 2007 the Tipping Fee Surcharge for Fund # 0159 is $3.00 per ton and the Waste Management Program Fund Fee for Fund # 0160 is $0.40 per ton. Payments made by the CONTRACTOR shall be sent to the County Franchise Coordinator along with an itemized statement regarding how the payment was calculated. Payments shall be adjusted to reflect any future changes in the amount of these fees. The residual weight shall not exceed 10% of the gross weight of all inbound tons for commercial comingled recyclables loads. Residual weight shall not exceed 25% of the gross weight of all inbound tons for residential comingled recyclables loads. The residual weight shall not exceed 1% of the gross weight of all inbound tons for greenwaste loads. CONTRACTOR will conduct an annual waste characterization study at the North San Luis Obispo County Recycling facility to assess the compliance with the maximum residual goal. CONTRACTOR will notify CITY and CITY's franchised hauler prior to any waste characterization study. CITY and CITY's franchised hauler to participate in the study as necessary. D. CONTRACTOR's facility shall be required to be available to receive commingled recyclables and organic waste Monday through Friday between 7:00 am and 4:00 p.m., holiday shift days and other times as mutually agreed. E The CITY and CONTRACTOR must agree, in writing, to any changes to the commingled recyclables and organic waste collected and processed prior to the addition of the materials to a CITY route and prior to any notification to the customers of such additions or deletions of materials. F. CONTRACTOR will assume all liability, ownership and control for the CITY's commingled recyclables and organic waste, including inadvertent hazardous waste contamination, and the disposal of such materials. Nothing in this Agreement is meant to limit the CONTRACTOR ability to seek recovery or reimbursement from the CITY franchised hauler. II. Compost Materials The CONTRACTOR shall make available to the CITY in an amount no more than 100 cubic yards of composted mulch each year from its Creston Processing Facility. The CITY will be solely responsible to arrange for pickup and transportation cost of the material from the Creston Facility back to the City of Atascadero at CITY expense. III. Liability and Permits A CONTRACTOR warrants that it possesses, and will possess throughout the term of this contract, all federal, state, and local permits needed to operate the facility that will accept and process the recyclables. CONTRACTOR shall provide current copies of its certifications and permits for MRF operations to the CITY for the term of this contract. 2 R In the case that the CONTRACTOR or the CONTRACTOR's facility is unable to accept commingled recyclables or organic waste for any reason (equipment failure, permit problems, failure to open facility, etc.), the CONTRACTOR will divert commingled recyclables or organic waste to an alternate location arranged by the CONTRACTOR and approved by the CITY. The CONTRACTOR shall pay for all transportation costs and fees charged at the alternate facility arranged by the CONTRACTOR. C. In the event that the CONTRACTOR is responsible for transporting processed or unprocessed commingled recyclables or organic waste and for any reason is unable to do so, the CONTRACTOR will arrange for alternative transportation arrangements and pay for costs charged by the alternate transporter. IV. Reporting, Record Keeping and Invoices A. CONTRACTOR shall have a certified truck scale on-site to weigh all loads of materials. The weigh scales shall be calibrated in accordance with procedures established by the applicable state and local authorities. Each vehicle shall be weighed upon entering and exiting (for those vehicles without tare weight) the CONTRACTOR's processing facility with a certified weight receipt given to driver after tipping the commingled recyclables, greenwaste and food waste. A copy of the weigh slip shall be submitted to the CITY with each monthly invoice in a form approved by the CITY. CONTRACTOR shall maintain a daily log of the sequential ticket number, vehicle number, gross vehicle weight, and tare vehicle weight. Copies of this information will be available to the CITY when requested. B. CONTRACTOR shall be required to document, in a form approved by the CITY, the average amount of contamination and process loss in each load as determined in an annual waste characterization study. A random sort audit of the collected commingled recyclables and organic waste may be conducted at the CONTRACTOR's facility when requested by the CITY to verify contamination rates and will be observed by a CITY designated representative. C. On a monthly basis, CONTRACTOR shall submit an invoice, including a compilation of the weight logs as well as the contamination and process loss logs, to the franchised waste hauler with a copy to the CITY representative designated in the contract by the fifteenth of the month following the service period. CONTRACTOR shall also submit a report on the City of Atascadero processed commingled recyclables, greenwaste and food waste which will include the commodity and gross tonnage for each commodity, percentage of mixture to the total tonnage, residue tonnage, total tonnage, recycled tonnage, and invoice to the franchised waste hauler with a copy to the CITY for the recycled tonnage in accordance with EXHIBIT B, Section B. D. CONTRACTOR will prepare all paperwork and provide the CITY with all necessary information to allow CITY to prepare necessary reports to State for AB939 reporting. 7 EXHIBIT B PAYMENT ARRANGEMENTS A Payment for delivery of commingled recyclables and organic waste shall be based upon the scope of services contained in Exhibit A. R Monthly, CONTRACTOR shall invoice the CITY's franchised hauler for the gross materials received from the CITY's residential and commercial commingled recycling and organic waste program over the period specified. The CITY's franchised hauler will be charged $75 per ton for delivered commingled recyclables from the CITl"s residential recycling program and $50 per ton for delivered commingled recyclables from the CITY's commercial recycling program delivered in the CITY's franchised hauler's authorized vehicles. The CITY's franchised hauler will be charged $35 per ton for delivered greenwaste from the CITY's residential and commercial greenwaste program, delivered in the CITY's franchised hauler's authorized vehicles. The CITY's franchised hauler will be charged $45 per ton for delivered clean food waste, $50 per ton for delivered dirty food waste, and $75 per ton for delivered exceptionally dirty food waste from the CITY's food waste program, delivered in the CFI Y's franchised hauler's authorized vehicles. The CITY's franchised hauler shall pay the CONTACTOR within 30 days of receiving an invoice. CONTRACTOR may assess CITY's franchised hauler a 10 percent late fee for each 30day delinquency period and additional thereafter. Clean food waste is defined as delivered food waste, which takes CONTRACTOR less than 45 minutes to clean. Dirty food waste is defined as delivered food waste, which takes CONTRACTOR at least 45 minutes but no more than 60 minutes to clean. Exceptionally dirty food waste is defined as delivered food waste, which takes CONTRACTOR more than 60 minutes to clean. Residual from the CITY's recycling program, processed through the CONTRACTOR's Material Recovery Facility located at 3360 La Cruz Way, Templeton California, shall be disposed in accordance with all in accordance with all existing and future CITY, county, state and federal laws and regulations at a CalRecycle properly permitted solid waste facility. CONTRACTOR will pay the landfill -tipping fee. The CONTRACTOR will pay every month to the CITY a franchise fee of $2.00 per ton on every ton of the gross materials received that month from the CITY's residential and commercial commingled recycling and organic waste programs. This payment will be made within 15 days of receiving payment from the CITY's franchised hauler. C. CITY's failure to discover or object to any unsatisfactory work or billings prior to payment will not constitute a waiver of CITY's right to require CONTRACTOR to correct such work or billings or seek any other legal remedy.