HomeMy WebLinkAboutReso - CC - 054-2021DocuSign Envelope ID: 2DDC3360-C745-4C90-BD93-653B14CDB33F
RESOLUTION NO. 054-2021
RESOLUTION OF THE CITY OF BURLINGAME APPROVING AMENDMENT ONE TO
THE FRANCHISE AGREEMENT WITH RECOLOGY SAN MATEO COUNTY TO ADD
A FOURTH ROUTE TO THE BULKY ITEM AND ABANDONED WASTE
COLLECTION PROGRAMS TO BEGIN ON JANUARY 1, 2022
RESOLVED, by the CITY COUNCIL OF THE CITY OF BURLINGAME that:
WHEREAS, the State of California, through the California Integrated Waste
Management Act of 1989, codified at Public Resources Code Section 40000, et seq.
(the "Act"), directs the responsible State agency and all local agencies to maximize the
use of feasible source reduction, recycling, and composting options in order to reduce
the amount of solid waste that must be disposed in landfills; and
WHEREAS, the South Bayside Waste Management Authority ("SBWMA") is a
joint powers authority existing between the cities of Belmont, Burlingame, East Palo
Alto, Foster City, Menlo Park, Redwood City, San Carlos and San Mateo, the Town of
Hillsborough, the West Bay Sanitary District; and the County of San Mateo ("Member
Agencies") to provide a regional approach to the collection and disposition of solid
waste, recyclable materials, and organic materials; and
WHEREAS, on June 22, 2017, the SBWMA Board of Directors approved a
model Franchise Agreement template, the "Amended and Restated Franchise
Agreement with Recology San Mateo ("Recology") for Recyclable Materials, Organic
Materials, and Solid Waste Collection Services" as the recommended Franchise
Agreement for each Member Agency to individually execute for hauling services by
Recology for the years 2021 through 2035, which has been adopted by the Member
Agencies (the "Amended and Restated Franchise Agreement"); and
WHEREAS, more particularly, on January 16, 2018, the City Council of the City
of Burlingame adopted Resolution No. 019-2018, approving the Amended and Restated
Franchise Agreement, effective January 1, 2021 through December 31, 2035; and
WHEREAS, pursuant to the Amended and Restated Franchise Agreement,
Recology provides a Bulky Item Collection program which allows residents to schedule
individual pickups of oversized items in certain circumstances, and provides an
Abandoned Waste Collection program to assure abandoned waste is collected
throughout the SBWMA territory; and
WHEREAS, the Bulky Item Collection and Abandoned Waste Collection
programs are popular and well -utilized and are nearing capacity due to strong customer
demand; and
WHEREAS, the attached proposed Amendment One to the Amended and
Restated Franchise Agreement will address the need for additional Bulky Item
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Collection and Abandoned Waste Collection service capacity by adding additional
resources to the program, specifically staff and vehicles for a fourth route, and clarify
and modify administrative provisions of the programs; and
WHEREAS, the SBWMA Board of Directors considered Amendment One at its
regularly scheduled meetings held on January 28, 2021, and March 25, 2021, and
adopted Resolution No. 2021-05 and Resolution No. 2021-08, "Recommending
Amendment One Modifications to the Member Agency Franchise Agreements With
Recology San Mateo County to Add a 4th Route to the Bulky Item Collection Program
for an Annual Nat -To -Exceed Amount of $631,371, with Contractually Allowable
Adjustments in Future Rate Years, to Begin on January 1, 2022".
NOW, THEREFORE, IT IS DETERMINED and ORDERED that:
1. The City Council hereby approves the Amendment One to the Amended and
Restated Franchise Agreement, attached as Exhibit A hereto.
2. The City Manager is hereby authorized to execute Amendment One to the
Amended and Restated Franchise Agreement.
3. This project has been reviewed with respect to applicability of the California
Environmental Quality Act ("CEQA"). The project is exempt from CEQA requirements
under CEQA Guidelines Section 15301 because approval and execution of the
Amendment involves the negligible expansion of existing facilities and use, and will not
cause a significant effect on the environment.
(21,v. 0- .
Ann O'Brien Keighran, W9yor
I, Meaghan Hassel -Shearer, City Clerk of the City of Burlingame, do hereby
certify that the foregoing resolution was adopted at a regular meeting of the City Council
held on the 17th day of May, 2021, by the following vote:
AYES: Councilmembers: BEACH, BROWNRIGG, COLSON, O'BRIEN KEIGHRAN, ORTIZ
NOES: Councilmembers: NONE
ABSENT: Councilmembers: NONE
"D"ocuSigned by:
UUnnarz D8QF�AAg...
Meaghan Hassel -Shearer, City Clerk
DocuSign Envelope ID: 2DDC3360-C745-4C90-BD93-653B14CDB33F
EXHIBIT A
AMENDMENT ONE
BY THE CITY OF BURLINGAME AND
RECOLOGY SAN MATEO COUNTY
TO THE
AMENDED AND RESTATED FRANCHISE AGREEMENT
BETWEEN THE CITY OF BURLINGAME AND RECOLOGY SAN MATEO COUNTY FOR RECYCLABLE
MATERIALS, ORGANIC MATERIALS, AND SOLID WASTE COLLECTION SERVICES
This first Amendment ("Amendment One") to the Amended and Restated Franchise Agreement between
the City of Burlingame and Recology San Mateo County for Recyclable Materials, Organic Materials, and
Solid Waste Collection Services ("Agreement"), effective as of June 1, 2021 ("Effective Date"), is made by
and between THE CITY OF BURLINGAME, a Municipal Corporation of the State of California ("Agency"),
and RECOLOGY SAN MATEO COUNTY, a California corporation ("Contractor").
RECITALS
A. WHEREAS, Section 5.05 of the Agreement requires Contractor to provide On -Call Bulky Item
Collection Service for residents and specifies that Contractor shall schedule a maximum of one
hundred fifty (150) On -Call Curbside Bulky Item Collection Service events per service day for the
SBWMA Service Area ("daily limit"), and Section 5.09 of the Agreement requires Contractor to
provide abandoned waste cleanup Collection service for a maximum of thirty (30) abandoned waste
Collection events per service day for the SBWMA Service Area ("daily limit"); and,
B. WHEREAS, Contractor conducts the On -Call Bulky Item Collection Service and abandoned waste
cleanup Collection service using the same Collection routes; and, as a result, the total combined
daily limit of On -Call Curbside Bulky Item Collection Service events and abandoned waste cleanup
Collection service events (collectively, "On -Call Pick-ups") is one hundred eighty (180) On -Call Pick -
Ups per day; and,
C. WHEREAS, anticipating that the combined daily limit would not be sufficient to handle actual
demand for On -Call Pick -Ups, the SBWMA and Contractor met and conferred and negotiated a
Model Amendment One to the Agreement, which provides an additional route to address the
problem; and,
D. WHEREAS, Parties identified minor items in the Agreement that warranted clarification or revision;
and,
E. WHEREAS; the SBWMA presented the Model Amendment One to the SBWMXs Board of Directors
on January 28, 2021; and, the Board took action recommending that each Member Agency enter
into Model Amendment One in substantially the form presented to the Board; and,
F. WHEREAS, the Agency and Contractor have agreed to the revisions to the Agreement as stated in
this Amendment One.
NOW THEREFORE, in consideration of the mutual promises contained herein, and for other good and
valuable consideration, the Agency and Contractor hereby agree to amend the Agreement through this
Amendment One as follows:
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TERMS OF AMENDMENT ONE
1. DEFINITIONS
1.1 Attachment A, Definitions. The following definitions are hereby added to Attachment A:
a. 2021 Amendment means the amendment to the Agreement that the SBWMA Board
approved, and recommended that each Member Agency enter into, on January 28,
2021,
b. On -call Pick -Up means an On -Call Curbside Bulky Item Collection Service event or an on -
call abandoned waste Collection service event.
2. BULKY ITEM AND ABANDONED WASTE COLLECTION SERVICES
2.1 Residential On -Call Bulky Item Collection Service. Section 5.05.H shall be amended to read as
follows:
H. Maximum Number of Daily Events. Contractor shall schedule up to a maximum of two
hundred (200) On -Call Curbside Bulky Item Collection Service events per service day for the
SBWMA Service Area ("daily limit"). The maximum number of daily events includes On -Call Bulky
Item Collection Service events provided to both Single -Family and Multi -Family Residential
Complexes, and those events provided at no charge and events paid for by the Customer,
Owner, or property manager. Contractor shall schedule On -Call Curbside Bulky Item Collection
Service events no more than ten (10) Business Days after the Owner's or Occupant's request up
to the maximum number of daily events. Upon reaching the maximum number of daily events,
requested On -Call Curbside Bulky Item Collection Service event shall be scheduled on the next
available regularly scheduled Solid Waste Collection Day.
SBWMA may adopt an allocation system for On -Call Bulky Item Collection Service events, in
order to allocate the "daily limit" for such events among Member Agencies. If adopted,
Contractor shall comply with the allocation system. The Agency agrees not to assess Liquidated
Damages if Contractor does not meet the ten (10) Business Day requirement if the delay has
resulted from (i) the volume of On -Call Bulky Item Collection events being in excess of the "daily
limit" for the SBWMA Service Area or Agency, or (ii) the Customer's request to schedule the
event on a date more than ten (10) Business Days in the future.
Contractor shall notify the SBWMA when the daily average number of On -Call Pick -Up events
reaches two hundred twenty-five (225) events, or any subsequently increased number of events
mutually agreed by the SBWMA Board and Contractor, combined for Residential On -Call Bulky
Item Collection service and abandoned waste Collection service, including On -Call Pick-ups
provided at no charge and On -Call Pick-ups paid for by Customers, Owners or property
managers) for the SBWMA service area. For the purpose of this Section, the daily average
number of On -Call Pick-ups shall be calculated on a weekly basis as the total number of On -Call
Pick -Ups performed Monday through Friday divided by the number of Collection days in the
week (e.g., typically five (5) days, except four (4) days for weeks with a Holiday). When this
threshold occurs for four (4) consecutive weeks, Contractor shall provide SBWMA with reports
documenting these statistics and, upon confirmation of that fact, SBWMA staff shall notify the
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SBWMA Board of Directors that the service capacity has been filled and to present options,
described in this section. Contractor shall continue to supply monthly reporting of the average
service count from the time of the original notice until action is taken by the SBWMA Board of
Directors.
Upon a confirmed notice from Contractor, the SBWMA Board may consider options, including,
but not limited to: (i) authorizing Contractor to implement and perform on -going operation of
an additional Bulky Item and abandoned waste Collection route; (ii) adjustment of the ten (10)
Business Day required provision of the On -Call Pick-ups; and/or (iii) reduction in the number of
On -Call Bulky Item pick-ups allowed for each Customer each year.
The SBWMA Board is hereby authorized, on behalf of the Agency, to determine if future changes
are required for the Residential On -Call Bulky Item Collection services described in Section 5.05
and abandoned waste Collection service described in Section 5.09. Such changes, if any, shall be
implemented and incorporated into this Agreement in accordance with Section 15.12, Right of
Agency to Make Changes in Services and Service Levels. If the SBWMA elects to implement an
additional Bulky Item and abandoned waste Collection route, the route shall include two trucks
and two drivers, and the annual cost for the route shall be that specified in Attachment U for
Rate Year 2021 (subject to adjustment in accordance with the methodology set forth in
Attachment K, if the new route is implemented in a later Rate Year). Each additional route
approved by the SBWMA shall provide capacity for sixty (60) additional daily Bulky Item
Collection and/or abandoned waste Collection services. In the event that the creation of a new
route provides for more capacity than there is demand for the Bulky Item Collection services,
Contractor shall permit additional collections of abandoned waste up to the total capacity.
Effective January 1, 2022, Contractor shall operate an additional Bulky Item and abandoned
waste Collection route, for a total of four (4). Contractor shall include the additional costs set
forth in Attachment U in Contractor's Application to determine Rates for Rate Year Twelve
(2022). Such costs (being 2021 costs) shall be adjusted to 2022 costs in accordance with the
methodology set forth in Attachment K. Such adjusted costs shall be added to Contractor's
Compensation (in addition to any other adjustments required under this Agreement) for
purposes of determining Rates for Rate Year Twelve (2022).
2.2 Abandoned Waste Clean -Up Collection Service. Section 5.09.A shall be amended to read as
follows:
A. General. Contractor shall provide abandoned waste cleanup Collection service to Agency as
provided herein. Contractor shall schedule up to a maximum of forty (40) abandoned waste
Collection events per service day for the SBWMA Service Area. Contractor shall make every
effort to collect abandoned waste within one (1) Business Day of being notified by Agency,
SBWMA, Customer, or Contractor's vehicle drivers and route supervisors of the occurrence
of abandoned waste or illegal dumping. Upon reaching the maximum forty (40) events,
Collection of abandoned waste event shall be scheduled and performed by Contractor on
the next available service day. This service shall require Contractor to Collect abandoned or
illegally dumped Solid Waste, Recyclable Materials, and Organic Materials. This service does
not include Collection of litter or litter abatement activities.
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Section 5.05.H describes a process for notification and consideration of program changes
when the daily average number of On -Call Pick -Up events reaches two hundred twenty-five
(225) events combined for Residential On -Call Bulky Item Collection service and abandoned
waste Collection service, including On -Call Pick-ups provided at no charge and On -Call Pick-
ups paid for by Customers, Owners, or property managers).
3. OVERAGE TAGS
3.1 Collection of Excess Materials (Overages), Section 8.02.G shall be amended to read as follows:
Contractor shall direct its employees to Collect an Overage on two (2) occasions each Rate Year
at no additional cost to Customer. Contractor must provide a notice to Customer documenting
the Overage in order to count the Overage Collection towards the (2) per Rate Year for each
Customer. Customers that place an Overage for Collection for a third and subsequent events
may be assessed an Overage fee by Contractor if Contractor has directly contacted the
Customer via a phone call, voice message or other means of communication to notify them of
the Overage Collected. Contractor shall bill Customer for a third and subsequent Overage events
at Agency -approved Charges specified in Attachment Q. Contractor shall provide Customers the
opportunity to request an Overage Collection service in advance. In such case, Contractor shall
bill the Customer at the Agency -approved Charge specified in Attachment Q.
Contractor shall provide Customers the opportunity to subscribe to Overage Collection service,
in advance, or purchase Overage tag(s) from the Contractor. Each Overage tag permits the
Customer to set out one (1) thirty-two (32) gallon garbage bag of Solid Waste next to their Solid
Waste Container on the Customer's regularly scheduled collection day, for Collection by
Contractor. Contractor shall provide Customers the opportunity to purchase Overage tags
through its Customer service department or electronically via Contractor's website. Contractor
shall mail or deliver Overage tags to Customers within three (3) Business days of Customer's
request. The Charge for Overage tags is specified in Attachment Q and includes all aspects of
purchasing the tags, printing, and distribution (i.e., mailing or direct delivery by Contractor).
Customers shall also be provided the opportunity to purchase Overage tags at Contractor's local
office. The quantity of Overage tags per request from Customer shall be limited to five (5) per
request.
If the Agency and/or Contractor receive numerous Complaints (as determined by the Agency)
from Customers regarding Customer dissatisfaction with the requirement to purchase Overage
tags, the Agency reserves the right to require the Contractor to modify its Overage program to
better serve its Customers and/or require the Customer to subscribe to additional Collection
service.
4. CLARIFICATION AND ADMINISTRATIVE MODIFICATIONS
4.1 The following changes shall be made to provide clarification and administrative modifications to
the Agreement:
4.2 Right of Agency to Make Changes in Services and Service Levels. Section 15.12.A shall be
amended to read as follows:
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A. Agency may, without amending this Agreement, direct Contractor to cease performing
one or more types of service described in Articles 5 or 6, or may direct Contractor to modify the
scope of one or more such services, may direct Contractor to perform additional Solid Waste,
Targeted Recyclable Materials, Organic Materials, Used Motor Oil, Used Motor Oil Filters,
Household Batteries and Cell Phones or Plant Materials handling services, or may otherwise
direct Contractor to modify its performance under any other Section of this Agreement. In
addition, SBWMA may, without amendment of this Agreement, direct a change: (i) in the
number of Waste Zero Specialists as provided in Section 7.04.A, (ii) in Other Services as provided
in Section 7.13, (iii) in the Residential On -Call Bulky Item Collection service described in Section
5.05, and/or (iv) in the abandoned waste Collection service described in Section 5.09. In the
event of an SBWMA-directed change under items (iii) or (iv), the provisions of Section 11.06
shall apply, but with the SBWMA substituted in the place of Agency. In the event of any conflict
between an Agency -directed change and an SBWMA-directed change, the SBWMA-directed
change shall govern. Agency hereby authorizes the SBWMA, with the approval of the SBWMA
Board, to do the following on behalf of Agency: (a) to establish the terms and conditions of any
program or service changes under items (iii) or (iv) above, (b) to include any costs associated
with an SBWMA-directed change in Contractor's Compensation and/or Pass -Through Costs, (c)
to determine Agency's share of such costs and to allocate such share to Agency, and (d) to
amend this Agreement as mutually agreed with Contractor to give effect to the foregoing. An
SBWMA-directed change shall be deemed to be an Agency -directed change for purposes of this
Agreement. Contractor shall promptly and cooperatively comply with such direction.
5. MISCELLANEOUS PROVISIONS
5.1 Recitals and Headings. The above recitals are incorporated herein by reference and are made a
part of this Amendment One. However, headings in this document are for convenience of
reference only and are not to be considered in any interpretation of this Amendment One.
5.2 Entire Agreement. This Amendment One contains the entire understanding of the Parties with
respect to the subject matter hereof and supersedes all prior and contemporaneous agreements
and commitments with respect thereto. Except as expressly modified by this Amendment One,
all other terms and conditions of the Agreement remain in full force and effect, unmodified, and
apply to this Amendment One as though fully set forth herein.
5.3 Counterparts. This Amendment One may be executed in counterparts, each of which shall
constitute an original, and all of which, when taken together, shall constitute one and the same
instrument.
5.4 Effectiveness. It shall be a condition precedent to the effectiveness of this Amendment One that
at least eight (8) of the SBWMA's Member Agencies enter into Amendment One.
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DocuSign Envelope ID: 2DDC3360-C745-4C90-BD93-653B14CDB33F
IN WITNESS WHEREOF, Agency and Contractor have executed this Amendment One as of the day and
year first above written.
CITY OF BURLINGAME
RECOLOGY SAN MATEO COUNTY
By: By:
Lisa K. Goldman, Salvatore M. Coniglio
City Manager CEO
ATTEST: By:
Meaghan Hassel -Shearer Cary Chen
City Clerk Secretary
APPROVED AS TO FORM:
City Attorney
DocuSign Envelope ID: 2DDC3360-C745-4C90-BD93-653B14CDB33F
ATTACHMENT U
RESIDENTIAL ON -CALL BULKY ITEM COLLECTION SERVICE
AND ABANDONED WASTE COLLECTION SERVICE ROUTE COST
Bulky Item Collection Costs
Additional BIC Route ,
2021 Dollars
Annual Cost of Operations
Direct Labor -Related Costs
__ _ ;Wages for CBAs
769 ,064
Benefits for CBAs
S148,795
Payroll Taws
S2t,889
1 Workers Compensation Insurance
$2L294
!Total Direct Labor Related -Costs
$467,042
Duct Fuel Costs
$20,748
_..._ ._.... __ - __ _ . _ ......--
Other Direct Costs
............. - - __. .__................._._...._._
$20,223
_.
Depreciation �.................._
_
- Collection Vehicles
$51,433 ...._..
-Containers
L0
iTotal Depreciation
1
$5t,433
Allocated Indirect Costs excluding Depreciation
lQnend and Administrative
$o
;Operations ------
Vehicle Maintenance
so
-----..........
Container Maintenance
L0
Total Allocated Indirect Costs excluding Depreciation
$0
Total Allocated indirect Depreciation Costs
--------------
$0
Total Annual Cost Of Operations
$559,446
Profit- _ -��
$58,726
Operating Rado
90 a%_.�
Total Operating Costs before Pass -Through Costs
S618,173
Contractor Pass -Through Costs
Interest EKpense
S13,19S
Total Contractor Pass -Through Costs
513,198
TOTAL BASE CONTRACTOR'S COMPENSATION
5631,37t
Note - Collection Vehicle Depreciation and Interest Expense are flat beginning in th,
of implementation. Purchase price will inflate until the purchase date.