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HomeMy WebLinkAbout19 - Newport Coast Residential Refuse CollectionCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 19 June 12, 2007 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Mark Harmon, Director of General Services Ext. 3055, mharmon@city.newport- beach.ca.us Robin Clauson, City Attorney Ext. 3131, rclauson @city.newport- beach.ca.us SUBJECT: Newport Coast Residential Refuse Collection Services ISSUE: Does the City Council want to begin a new Request for Proposal (RFP) process, reject all previous proposals received, and direct staff to issue the revised RFP which is attached to this report, and extend the current Agreement with Waste Management of Orange County for three months- from July 1, 2007 through September 30, 2007? RECOMMENDATION: Begin a new Request for Proposals (RFP) process, reject all previous proposals received, and direct staff to issue the revised RFP which is attached to this report, and extend the current Agreement with Waste Management of Orange County for three months- from July 1, 2007 through September 30, 2007 BACKGROUND: On April 20, 2007, City staff received five proposals for solid waste collection services in the Newport Coast area. The current contract with Waste Management of Orange County is set to expire on June 30, 2007. Each proposal was evaluated based on criteria outlined in the RFP sent to each bidder. These criteria included: the use of AQMD approved vehicles, fully automated collection experience, ability to meet the recycling requirement, proposed implementation plan, and proposed cost per unit. Based on staffs analysis, a report was presented to City Council at its May 8, 2007 meeting, recommending that a ten -year agreement be awarded to CR &R, Inc. to provide these services. Following discussion, and consideration of presentation by Ware Disposal including some proposed terms and equipment different than set forth in Newport Coast Residential Refuse Collection Services June 12, 2007 Page 2 their proposal, Council voted to award the contract to Ware Disposal, Inc. based on that firm's lowest cost per unit proposal and agreements to limit number of second containers and to recycle 40% (May 8th staff report and Council minutes attached). On May 22, 2007, the City Council voted to reconsider its decision concerning the contract award to Ware Disposal, Inc. This reconsideration was due to concerns a majority of the council members had with the process used in evaluating and awarding the contract. Request for Proposals (RFP) During the discussion of the solid waste collection services in Newport Coast, Council members made several recommendations concerning the RFP and draft contract that was sent to prospective bidders. The recommended changes will allow for an improved process that might avoid some of the problems that occurred during the previous evaluation. Staff has implemented revisions in the attached RFP. The changes include, but are not limited to, the following: • Clearly defined bid cut -off date with a short period of time following the cut -off date for staff to request bid clarification. No information from bidders will be accepted or considered following the clarification time frame and unless it is information that is requested by City staff. • Established negotiation period. Staff will have 10 days following Council's selection of the best responsive bid to negotiate terms of agreement, including defined service levels, with the exception of cost per unit. • Clear description of the type of collection equipment required for a bid to be considered responsive. • Lower cap on annual CPI increases to be consistent with City's existing large contracts. • Reporting requirements that include customer satisfaction surveys. • Mandatory bidders' conference to discuss the RFP with prospective bidders. • Multi -year extensions past initial term of agreement. • Cap on the number of extra containers the City will fund. • Appropriate liability insurance levels reflective of industry risk. Specific changes are highlighted in the attached RFP document. In the event that Council rejects the previous bids and directs staff to re- submit the revised RFP to qualified companies, staff respectfully requests that Council review and comment on the attached RFP. Newport Coast Residential Refuse Collection Services June 12, 2007 Page 3 Timeframe /Process If Council rejects all previous proposals, directs staff to re -issue the RFP, and extends the current contract with Waste Management of Orange County, the following timeframe would be followed: June 13- RFP would be mailed to all solid waste companies with valid franchise agreements on file with General Services Department, June 19- Mandatory pre -bid conference to discuss RFP and answer any questions. June 29- Bids due to General Services Department. June 29 Staff will evaluate bids and seek clarification /additional information on any - July 11 items. July 24- Staff will present recommended contract to City Council for approval. Following Council approval, staff will negotiate /finalize terms of the agreement with approved hauler. August 14- Final Contract is approved by City Council. October 1- New contractor starts servicing the Newport Coast area. Waste Management of Orange County, the current provider of services in the Newport Coast area, has agreed to a contract extension through September 30, 2007, if City Council decides to solicit bids for this project. A letter from Waste Management is attached. Financial Review The current budget for solid waste services in Newport Coast is $740,000 per year. By rejecting all bids and extending the current agreement for three months, the potential cost to the City is approximately $29,000 above what we would pay under a contract with Ware Disposal. Environmental Review This project does not require environmental review. Public Notice This agenda item may be noticed according to the Ralph M. Brown Act (72 hours in advance of the public meeting at which the City Council considers the item). Newport Coast Residential Refuse Collection Services June 12, 2007 Page 4 Legal Review The City Attorney's office participated in the development of the Request for Proposals attached to this report. Submitted iwarK riarmon Director of General Services Robin Clauson City Attorney Attachments: 1) May 8th staff report and Council Minutes 2) Revised Request for Proposals (RFP) 3) Letter from Waste Management of Orange County CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. S23 May 8, 2007 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: General Services Department Mark Harmon, Director, (949) 644 -3055 m harmo n(&ciiv. newaort -bea ch. ca. us SUBJECT: Contract Award to CR &R Inc. for Newport Coast Fully Automated Residential Refuse Collection Services ISSUE: Should the City award a ten -year contract agreement to CR &R, Inc. to provide fully automated residential refuse collection services in the Newport Coast area or should the City Council go with another provider? RECOMMENDATION: Authorize a ten -year agreement with CR &R, Inc. through June 30, 2017 to provide fully automated residential refuse collection services in the Newport Coast area. DISCUSSION: Background The 7,700 -acre Newport Coast community is located at the eastern edge of the City and contains private residences in six major community associations, including the Newport Ridge, Newport Ridge North, Newport Coast, Ziani, Pelican Point, and Crystal Cove Community Associations. On January 1, 2002, the City annexed the Newport Coast community, and in doing so, agreed to fund residential trash collection services for area residents. At the time of annexation, Waste Management of Orange County provided fully automated residential refuse collection services to the area under an exclusive franchise agreement with the County of Orange. Pursuant to State law (Public Resources Code Section 49520), the City was required to continue service with the exclusive franchisee for a minimum of five Award Contract for Newport Coast Fully Automated Residential Refuse Collection Services May 8, 2007 Page 2 years, and Waste Management has continued to provide this service throughout this period. ProlectDescription/Spope of Services The current contract for residential refuse collection services expires on June 30, 2007. The scope of work in the proposed contract includes providing collection services to approximately 4,000 residences in the Newport Coast area of the City. It is projected that the Newport Coast area will total approximately 5,200 residences at build out The area served in this agreement includes neighborhoods along Newport Coast Drive from east Coast Highway to the 73 Freeway in the eastern section of the City. Bin service in the Newport Coast area will not be included with this agreement. To ensure that a high standard of service is maintained, specifications for the collection of materials are detailed in the request for proposal and the proposed agreement. These specifications include: automated container types and sizes, minimum waste collection levels, collection days and times, waste disposal and recycling requirements, insurance requirements, and equipment requirements. Service levels will be monitored by City staff who will also review the contractor's required reports of collection and disposal activities. The term of the proposed contract is for ten years due to the large commitment of personnel and equipment required to provide initial service. An annual CPI increase is included after the 1s' year of service. Experience has proven that a multi -year contract is the most cost- effective means to have solid waste collection services performed for both the City and the contractor. Bid Process and Analvsis A Request for Proposals (RFP) was mailed to a list of the City's franchised commercial solid waste haulers at the beginning of April. Since this time, staff has received inquiries and provided clarification on items included in the RFP. Proposals were due to the City by Friday, April 20th at 12 pm. Prior to this deadline, the City received 5 bids for solid waste collection services from the following solid waste haulers: • CR &R Inc. • Rainbow Disposal • Ware Disposal Waste Management of Orange County • Waste Resources/Roberfs Waste Award Contract for Newport Coast Fully Automated Residential Refuse Collection Services May 8, 2007 Page 3 Evaluation Criteria Proposals submitted to the City were reviewed by City staff from General Services, the City Attorney's Office, and the City Manager's Office. As indicated in Section 3 of the RFP sent to bidders, fee schedules and costs are not the sole criteria for award of this agreement. Instead, evaluation criteria for the proposals Included several categories. Based on these criteria, staff compiled the following information from each bidder: AQMD Approved Vehicles This section was used to evaluate, the requirement that the bidder provide collection services using alternative fueled vehicles approved by the South Coast Air Quality Management District for fully automated refuse collection services. CR &R Currently has over 70 AQMD approved alternative fueled vehicles in its fleet. No additional trucks will be needed to meet the terms of the agreement. In its bid proposal, CR &R proposed to use AQMD approved alternative fueled vehicles in service collection for Newport Coast. Rainbow Disposal Currently has 10 AQMD approved alternative fueled vehicles in its fleet. In addition, this hauler is in the process of procuring an additional 14 alternative fueled vehicles to add to its fleet. In its bid proposal, Rainbow Disposal proposed to use AQMD approved alternative fueled vehicles in service collection for Newport Coast. Ware Disposal Currently has no AQMD approved alternative fueled vehicles in its fleet. In its bid proposal, Ware Disposal proposed to use a diesel fueled vehicle in service collection for Newport Coast. Diesel fuel does not satisfy requirements for an alternative fueled vehicle per SCAQMD Rule 1193. In subsequent communications with City staff after the close of bids on April 20, Ware Disposal changed their proposal to include the use of alternative fueled vehicles for the term of the agreement. Ware Disposal now proposes to purchase AQMD approved alternative fuel vehicles to satisfy the proposal requirement. Waste Management Currently has 48 AQMD approved alternative fueled vehicles in Its fleet. No additional trucks will be needed to meet the terms of the agreement. In its bid proposal, Waste Management proposed to use AQMD approved alternative fueled vehicles in service collection for Newport Coast. Award Contract for Newport Coast Fully Automated Residential Refuse Collection Services May 8, 2007 Page 4 Waste Resources /Robert's Waste Currently has no AQMD approved alternative fueled vehicles in its fleet. In its bid proposal, Waste Resources/Roberts Waste proposed to use a bio- dieset fueled vehicle in service collection for Newport Coast. Bio- diesel does not satisfy requirements for an alternative fueled vehicle per SCAQMD Rule 1193. In subsequent communications with City staff after the close of bids on April 20, Waste Resources/Robert's Waste indicated that they would be willing to acquire alternative fueled vehicles for the term of the agreement to satisfy the proposal requirement. Cost Information Waste Hauler Proposed Cost Current Proposed Cost Current Estimated Base: $10.90 Residences Containers Add'[ Containers CR&R Disposal: $ 2.67 4.000 $3.00 441 $667.236 Total: $13.57 Base: $1245 Rainbow Disposal:$ 2.50 4,000 $3.75 441 $737,448 Disposal Total: $14.95 Base: $ 9,30 Ware Disposal Disposal:3 2,66 4,000 $7.96 441 $616,200 Total: $11.96 Base: $11.72 Disposal: $ 731 4.000 $3.42 441 $739,536 Waste Management Total: $15.03 Base: $15.43 waste oil sposal:3 2.86 4,000 $1829 441 $974.712 Resources/ Robert's Waste Total: $18.29 'Cost estimates do not Include projected growth of 25 homes per month. Fully Automated Experience This section was used to evaluate the bidder's experience and performance providing fully automated collection services for other public agencies. Award Contract for Newport Coast Fully Automated Residential Refuse Collection Services May 8, 2007 Page 5 CR &R Currently manages over 250,000 fully automated accounts throughout the region and has approximately 20 years experience providing fully automated services. These accounts total approximately 500,000 fully automated containers in service. CR &R currently provides fully automated collection services for several focal communities, including the cities of Costa Mesa, Alfso Viejo, Dana Point, San Clemente, San Juan Capistrano, and Laguna Niguel. Rainbow Disposal Currently manages over 30,000 fully automated accounts throughout the region and has approximately one year experience providing fully automated services. These accounts total approximately 100,000 fully automated containers in service. Rainbow Disposal currently provides collection services for several local communities, including the cities of Sunset Beach, Huntington Beach, and Fountain Valley. Ware Disposal Currently manages over 1,500 semi - automated accounts throughout the region and has over a year and a half experience providing these services. These accounts total approximately 3,000 containers in service. Ware Disposal currently provides collection services for the City of Laguna Woods. Waste Management Currently manages over 200,000 fully automated accounts throughout the region and has approximately 20 years experience providing fully automated services. These accounts total approximately 600,000 fully automated containers in service. Waste Management currently provides collection services for several local communities, including the cities of Irvine, Laguna Beach, Lake Forest, Orange, and Santa Ana. Waste Resources/Robert's Waste Currently manages no automated accounts throughout region. Waste Resources currently provides commercial collection services for the City of Gardena and Robert's Waste provides commercial collection services for the City of Newport Beach. Recycling Requirement This section was used to evaluate the bidder's ability to meet local and state waste disposal and recycling requirements. R R Provided evidence on how if would meet a 30% diversion requirement. Award Contract for Newport Coast Fully Automated Residential Refuse Collection Services May 8, 2007 Page 6 In addition, CR &R currently operates a mixed waste materials recovery facility for processing waste. This process helps to provide up to 10% additional diversion of recyclable materials in the sorting process due to contaminated recycling loads. This occurs when materials other than recyclables are placed in a recycling container. Rainbow Disposal Provided evidence on how it would meet a 30% diversion requirement. In addition, Rainbow Disposal currently operates a mixed waste materials recovery facility for processing waste. This process helps to provide up to 10% additional diversion of recyclable materials in the sorting process due to contaminated recycling loads. This occurs when materials other than recyclables are placed in a recycling container. Ware Disposal Provided evidence on how it would meet a 30% diversion requirement. In addition, Ware Disposal currently operates a commingled recycling materials recovery facility for processing waste. This process does not provide additional diversion of recyclable materials. Waste Management Provided evidence on how it would meet a 30% diversion requirement. In addition, Waste Management currently operates a mixed waste materials recovery facility for processing waste. This process helps to provide up to 10% additional diversion of recyclable materials in the sorting process due to contaminated recycling loads. This occurs when materials other than recyclables are placed in a recycling container. Waste Resources/Robert's Waste Provided evidence on how it would meet a 30% diversion requirement. In addition, Waste Resources /Robert's Waste currently utilizes a commingled recycling materials recovery facility for processing waste. This process does not provide additional diversion of recyclable materials. Implementation Plan This section was used to evaluate the bidder's ability to facilitate a seamless transition of collection services between service providers. Award Contract for Newport Coast Fully Automated Residential Refuse Collection Services May 8, 2007 Page 7 CR &R Hauler has successfully managed service changeovers between solid waste providers. These changeovers include the cities of Laguna Hills, Bellflower, and Rancho Santa Margarita. In addition, CR &R currently has over 15,000 containers in stock that will be available for Newport Coast residents prior to the July 1 start date. Rainbow Disposal Hauler has successfully managed service changeovers between solid waste providers. These changeovers include the City of Huntington Beach and the Midway City Sanitary District. In addition, Rainbow currently has over 10,000 containers in stock that will be available for Newport Coast residents prior to the July 1 start date. Ware Disposal Hauler has successfully managed a service changeover between solid waste providers in the City of Laguna Woods. In addition, Ware Disposal proposes to order approximately 8,000 containers for Newport Coast residents prior to the July 1 start date. Waste Management Hauler is the current service provider for Newport Coast; therefore, no implementation plan or new containers would be necessary. Waste Resources /Robert's Waste Hauler did not provide evidence of a service changeover between solid waste providers. In addition, Waste Resources/RoberCs Waste proposes to order approximately 8,000 containers for Newport Coast residents prior to the July 1 start date. A Last Factor for Consideration City staff has concerns that companies which have not been providing fully automated .collection services do not have the level of experience with automated vehicles needed to match the current level of service being provided. The ability to provide the collection services as "quietly" and as safely as possible, in terms of potential property damage, is a factor for consideration. Driver inexperience with using automated containers and the vehicles themselves have the potential to create problems with providing a seamless transition. Award Contract for Newport Coast Fully Automated Residential Refuse Collection Services May 8, 2007 Page 8 Financial Review /Financial Availability Funding for this agreement was included in the Fiscal Year 2007 -08 budget. The current cost for Newport Coast collection services, based on the current monthly fee of $15.03 per home, Is $739,536. Based on the bid from CR &R Disposal of $13.57 per home, staff.estimates that the total cost for collection services will be $667,236. This cost represents a savings of $72,300 next fiscal year and over $700,000 during the life of the agreement. Current CR &R Bid Rainbow Disposal Bid Ware Disposal Bid Waste Management Bid Waste Resources /Roberts Bid Recommendation Monthly Cost Per Home Total Annual Cost $15.03 $739,536 $13.57 $667,236 $14.95 $737,448 $11.96 $616,200 $15.03 $739,536 $18.29 $974,712 Based on the evaluation of bids using the criteria above, City staff believes the proposal from CR &R Inc. will provide the best value for the City and the residents of Newport Coast In terms of a combination of service quality and cost. CR &R has provided solid waste collection and material recovery services in Orange, Los Angeles, San Bemardino, San Diego, and Riverside Counties for approximately 40 years. Through a subsidiary, CR &R currently provides fully automated solid waste and recycling collection services to several nearby cities, including Costa Mesa, Allso Viejo, Dana Point, San Clemente, San Juan Capistrano, and Laguna Niguel, among others. However, if the City Council believes the cost of the service provided is the most important factor in selecting the waste contractor, the lowest cost provider would be Ware Disposal. Award Contract for Newport Coast Fully Automated Residential Refuse Collection Services May 8, 2007 Page 9 Environmental Review: This project does not require environmental review. Public Notice: This agenda item may be noticed according to the Ralph M. Brown Act (72 hours in advance of the public meeting at which the City Council considers the item). Legal Review The City Attomey s Office participated in the development of the Request for Proposals and the evaluation of proposals submitted to the City. Based on the evaluation using the established criteria, the City Attorneys Office advised that awarding an agreement to CR &R is in conformance with the law because the City should consider all factors and not just price in reviewing the requests for proposal. General Services Director Reviewed by: — zv,— C— - ff e-.L.,— Aaron Harp Assistant City Attorney Attachments: Prepared by� O'�Jzt,"_ Chris Marcarello Administrative Analyst 1. Request for Proposals for Residential Solid Waste Collection and Recycling in Newport Coast 2. Proposed Contract for Fully Automated Solid Waste Collection Services City Council Regular Meeting Pagel of 3 S23. CONTRACT AWARD TO CR &R INC. FOR NEWPORT COAST FULLY AUTOMATED RESIDENTIAL REFUSE COLLECTION SERVICES [381100 - 2007]. Staff Report General Services Director Mark Harmon gave a PowerPoint presentation and provided information regarding the Request for Proposals for maintaining the.current level of service. Staffs recommendation is to contract with CR &R to provide fully automated collection- General Services Director Harmon responded to Council Member Henn that the contract to provide seven (7) days notice of termination to a waste hauler could put the City in disarray unless there was another waste hauler in the wings. City Attorney Clauson responded to Council Member Curry that the recommendation was for the waste hauler to provide a Performance Bond and cost basis analysis and that the Council would have the ability to deal with lack of performance. General Services Director Harmon felt it would be risky to award a contract based on low cost only. Council Member Henn said that all of the trucks were to be fully automated. Implicitly Ware is representing that they will have another fully automated truck and in fact will have two fully automated trucks. Mayor Pro Tem Selich asked why the RFP was set up to provide an additional schedule for additional containers and wondered if the wide spread in cost was because it was an open ended contract. He also asked why would the City not just ask for a single bid for all services. General Services Director Harmon explained that there is a cost for additional containers throughout the industry and a percentage would tend to limit the number of additional containers. Council Member Gardner asked why there would be a limit of 30% set when the recycling requirement is 50 %. General Services Director Harmon responded that currently the City is diverting about 57 %. A lot of recycling comes from commercial and construction waste and it is more difficult to attain a high diversion rate on residential waste. Council Member Henn asked if it was typical to include a 13% CPI. City Attorney Clauson said that over the years the Council has placed a percentage on the CPI adjustment. Council Member Henn believed there should be 4% ceiling on all CPIs. David Fahrion, President, Solid Waste Division, CR &R talked about his company�s services and saw this as an opportunity to expand the company's services. He stated that his company serves most of the communities in Southern California and 200,000 residences with fully automated trucks. Patrick Munoz, a Newport Beach resident speaking on behalf of Ware Disposal, pointed out that Ware Disposal offered favorable options for consideration - price, vehicles, experience and recycling. Other areas of concern to the Council should include yearly increases and additional equipment charges. Mr. Munoz explained to Mayor Rosansky that Ware would agree to a provision to limit the supply of additional containers to encourage more recycling which would result in a dramatic savings over time. Ware has always agreed to provide fully automated AQMD compliant vehicles. Ware has one vehicle and provided the City with copies of invoices for two additional compliant vehicles that it will receive in the near future. He showed examples and explained the difference between fully automated and semi- automated vehicles. Mr. Munoz further explained that the third fully automated AQMD compliant vehicle is due to arrive in September. It is a smaller vehicle that can more easily traverse the residential routes. Recycling is an important issue that was not adequately addressed in the RFP. Ware's facility in Santa Ana will provide the same MERF benefits with a diversion percentage of 43. http: / /newportbeach.grani=. con/ MinutesViewer .php ?view_id= 16&clip_id =491 06/01/2007 City Council Regular Meeting Page 2 of 3 Mayor Pro Tem Selich asked if Ware were awarded a contract would it guarantee a 43% diversion rate. Council Member Webb said he was confused because the proposal was supposed to have hated the equipment. Mr. Munoz said that the intent of Ware's proposal was always to provide AQMD compliant trucks. Council Member Henn asked how Ware intended to maintain the trucks in order to keep them operational. Mr. Munoz responded that Ware has mechanics that are capable of working on these trucks with the exception of the fuel system and the trucks will be serviced under warranty as it relates to the fuel system. Mayor Pro Tem Selich said when he first looked at the proposal he saw a base rate that was substantially lower than that of other bidders. He asked what assurance Ware would give that they would not request a rate increase in a year or two. Mr. Munoz stated that Ware would not ask the City for an increase. The rate proposed is not an abnormally low rate and it is a fair rate for the work proposed. Council Member Gardner liked the fact that the homeowner would be given an extra recycling container if needed. Mr. Munoz stated that in his professional experience he believed the number proposed by staff was high. Mayor Rosansky stated that the CC &R contract does not provide for additional recycling bins. General Services Manager Harmon said to his knowledge the extra recycling container was not free with CC &R, City Attorney Clausen explained to Mayor Rosansky that this was not a "low bid" situation but a contract negotiation and often staff can go back and negotiate certain points. The decision the Council needs to make should be based on the response to proposal and it would be unfair to not allow other bidders to meet the requirements. If the Council wanted to change the terms of the RFP it should go back out for bid again. City Attorney Clausen suggested the Council ask CC &R whether it could guarantee 43% diversion since CC&R is the recommended hauler. Council Member Curry asked if the Council could select a carrier and negotiate with that carrier. City Attorney Clausen responded that the Council would need to give the selected carrier an opportunity to renegotiate the contract with the selected bidder. Steven Sebrey, Nixon Peabody LLP, attorney representing CR&R said that this is a contract proposal. What is happening here is that CC &R in a timely fashion met the City s RFP requirements and staff is recommending that the Council accept staff recommendation. Council Member Henn said he was very uncomfortable negotiating on the fly and would rather make a decision based on the proposals. Jay Ware, General Manager, Ware Disposal, reiterated Mr. Munoea statements and noted that the Ware family and business reside in Newport Beach and that the company has drivers and vehicles that can immediately step in to provide service to Newport Beach. The proposal stands and if there is a need to change the diversion rate for recycling, Ware would agree to 43% or provide free containers. Ally. Ware responded to Mayor Rosansky that within the RFP there was no container amount and he felt 141 containers was too much. If someone needs an additional container they need to know how to recycle and Ware is committed to working with the City to teach residents how to recycle. Motion by Council Member Curry to authorize a ten -year agreement with Ware Disposal through June 30, 2017 to provide fully automated residential refuse collection services in the Newport Coast area with additions and changes to the contract to include the following: the hup:// newportbeach. granicus. com/ MinutesViewer .pbpMew_id= 16&clip_id =491 06101/2007 City Council Regular Meeting Page 3 of 3 hauler will provide free additional recycling bins; guarantee a diversion rate of 40 %; provide all reports; provide vehicle citation reports to the City Council; and, provide liability insurance to the City in the amount of $5 million. The motion carried by the following roll call vote: Ayes: Council Member Henn, Council Member Curry, Mayor Pro Tem 3elieb, Mayor Rosansky, Council Member Daigle, Council Member Gardner Noes: Council Member Webb n/MinutesViewer.php?view id= 16 &clip_id =491 06/01/2007 rg'wpOk o` r� u � 'tfroxr�' City of Newport Beach General Services Department TO: Honorable Mayor and City Council FROM: Mark Harmon, General Services Director DATE: June 12, 2007 SUBJECT: RFP Changes Cover Sheet Below, please find a list of changes and additions to the Request for Proposals for Residential Solid Waste Collection in Newport Coast. These changes are also underlined in the RFP document that is attached. Page 2, Scope of Services • Added provision for City to extend agreement for five additional one -year periods at the end of the initial ten -year term. • Added language that allows customers to request smaller containers, if they desire. • Placed a limit on the number of additional containers that the City will pay for -10% of total billed customer accounts. _Page 3. Timeline • Changed dates • Added a mandatory bidder's conference • Clarified that no information will be accepted after the proposal deadline, unless to clarify a bid upon request of City staff Page 4, Negotiation Period • Added a negotiation period for City staff and selected bidder to negotiate terms, excluding price Page 6, Containers • Added language that ensures City staff approves container color • Added language that allows customers to request smaller containers, if they desire. Places restriction on delivery date of new containers Page 6, Additional Solid Waste Collection Services • Placed restriction on bulk item collection days and pickup times Page 7, Waste Disposal Requirements • Changed recycling requirement to at least 40% Page 7, Fee Increases • Placed a 3% cap on annual CPI increases Page 8, Insurance Requirements • Changed insurance levels to $2 for automobile liability coverage Million for general liability and $5 Million Page 9, Equipment Requirements • Further defines automated collection vehicles • Added notification requirement if a hydraulic spill occurs Page 10, Customer Service Surveys • Added requirement for contractor to produce and mail customer service surveys Page 10, Defined Service Levels • Added clearly defined service level expectations for the refuse collection agreement Page 11. Work Deficiencies • Added penalties for not complying with defined service levels Page 12, Fees /Cost Information • Placed a limit on the number of additional containers that the City will pay for -10% of total billed customer accounts. • Added no additional cost for extra recycling containers Page 13, Equipment List • Further defines automated collection vehicles Page 13, Equipment Safety Training and Equipment Safety Records • Added requirement for contractor to provide all safety, inspection, and incident reports for equipment from 2005, 2006, and 2007. Page 13, Waste Collection /Recycling Plans • Added language requiring information on materials disposal /transfer facility CITY OF NEWPORT BEACH Request for Proposal Residential Solid Waste Collection and Recycling Services in Newport Coast City of Newport Beach Request for Proposal Residential Solid Waste Collection and Recycling Services in Newport Coast 1. Introduction The City of Newport Beach (City) is soliciting written competitive proposals from private contractors to provide fully automated solid waste collection and recycling services for residential customers within the Newport Coast area of the City. The 10 year contract will provide for the successful contractor to provide curbside residential service within the Newport Coast boundaries shown on the attached map for all existing and future curbside residential service needs within the service area. After a careful review of each submitted proposal, the City will conduct an evaluation leading to the selection of a contractor and the award of a contract. The City's objectives for the solid waste collection and recycling services are to: • Provide an efficient solid waste management system, which includes mandatory collection of solid waste and recyclable materials. • Preserve the environment and protect the health, safety and quality of life for Newport Beach residents by utilizing fully automated AQMD compliant vehicles and trained operators. • Comply with the State of California Assembly Bill 939, known as the California Integrated Waste Management Act of 1989, which requires jurisdictions to divert from disposal in landfills 50% of the solid waste generated within the City. Copies of this proposal may be obtained in person at the Administration office of the General Services Department located at 592 Superior Avenue, Newport Beach. Questions regarding this agreement should be addressed to Chris Marcarello, Administrative Analyst at (949) 644 -3057. Proposals and all written inquiries related to this RFP are to be submitted in a sealed envelope to the General Services Administration office, located in Bldg. A at 592 Superior Blvd., no later than 12:00 p.m. on June 29, 2007 with the following notation: CONFIDENTIAL — Residential Solid Waste Collection and Recycling Services in Newport Coast 2. Scope of Services The City seeks a private solid waste management company with a current City of Newport Beach commercial solid waste franchise (Contractor) to undertake full 1 responsibility for operation of fully automated residential curbside solid waste and recyclable material collection within the Newport Coast area of the City of Newport Beach. The contract term is 10 (ten) years, with a City option for one 5 (five) year extension.. The following are the services to be provided by the Contractor. • Provide weekly fully automated residential curbside refuse collection, recycling and disposal services to single - family residences in the Newport Coast Area annexed on January 1, 2002 by the City. • Handle all resident inquiries or complaints of service in an expeditious manner. • Provide a bulky item pickup twice per year for each single - family residence with a limit of 4 items per request. Bulk Item collection requests must be collected within 1 -week of call and scheduled for the same day as refuse and recycling collection. • Provide all City residential customers an automated, wheeled solid waste container in the size of 96 gallons for refuse materials, unless the resident requests a smaller size. • Provide to all City residential customers an automated, wheeled recycling container in the size of 96 gallons for mixed recyclables, unless the resident requests a smaller size. • Provide additional individual automated, wheeled solid waste containers upon property owner request. City will pay for additional refuse containers up to 10% of total billed residential accounts (e.q. If City is billed for 4,000 total customer accounts per month. Hauler may charge City for a maximum of 400 additional containers per month). There will be no additional charge borne to the City for extra recycling containers requested. • Collect solid waste and recyclable materials from residential customers at intervals of not less than once per week. Collection schedule will remain the same as existing schedule unless agreed upon between City and Contractor and will not be adjusted earlier than 60 days after start of agreement. • Collect, recycle and dispose of all residential solid waste materials in accordance with the provisions of the City's commercial non - exclusive solid waste franchise agreement and all applicable City ordinances and State mandates. • Invoice the City for collection services rendered at intervals not to exceed once per month. • Provide curbside collection of Christmas trees on the first two regularly scheduled collection days for each home after Christmas Day. • Provide a monthly report to the City relating to the City's AB 939 compliance requirements. 2 3. Timeline Mandatory Bidder's Conference June 19, 2007 10 A.M. Proposal due to the City June 29, 2007 (By 12:00 p.m.) Evaluation Period /Bid Clarification June 29 through July 6, 2007 Award of Contract July 24, 2007 Negotiate /Finalize Terms July 25 through August 3, 2007 Final Contract Approved August 14, 2007 Contractor in Place October 1, 2007 4. Bidder's Conference All parties selected to submit proposals for Residential Solid Waste Collection and Recycling Services in Newport Coast are required to attend a MANDATORY Pre-bid meeting. The meeting is scheduled for June 19, 2007 at 10:00 A.M., 592 Superior Avenue, Building A Newport Beach, CA. City staff will be on hand to review the proposals and answer questions from prospective bidders. FAILURE TO ATTEND THIS PRE -BID MEETING SHALL RESULT IN DISQUALIFICATION FROM THE RFP PROCESS 5. Proposal Deadline Proposals and all written inquiries related to this RFP are to be submitted in a sealed envelope to the General Services Administration office, located in Bldq. A at 592 Superior Blvd., no later than 12:00 p.m. on June 29. 2007 with the following notation After the 12:00 p.m. deadline on June 29. 2007, no additional information may be submitted or will be reviewed in regards to this RFP. From June 29, 2007 through July 6, 2007, City staff will conduct a bid clarification period to clarify information contained in submitted proposals. BIDDER MAY NOT CHANGE OR MODIFY THEIR PROPOSAL, OR PROVIDE ANY ADDITIONAL INFORMATION DURING THIS CLARIFICATION PERIOD UNLESS THE ADDITIONAL INFORMATION IS SPECIFICALLY REQUESTED BY CITY STAFF TO CLARIFY OR SUPPORT THE SUBMITTED PROPOSAL. 3 6. Negotiation Period Following the City Council's selection of the best responsive bid on July 24 2007, City staff will enter into a 10 (ten) day negotiation period with the selected bidder. During this period, parties will have the ability to negotiate service level terms of the agreement as discussed in section 10 below. with the exception of cost per unit. 7. Community Background The City of Newport Beach is a scenic beach community located in Orange County with a population of 85,000 residents. The community is home to a 21 square mile harbor area and over 23 miles of ocean beach. The City uses a mix of services to perform residential and commercial solid waste collection throughout the community. Commercial solid waste collection is performed through a non - exclusive system with approximately 25 trash haulers offering fixed and temporary route service to customers. 85% of residential solid waste collection is performed by City staff, with the remainder being managed by private solid waste hauler firms through exclusive franchise agreement. The 7,700 -acre Newport Coast community is located at the eastern edge of the City and contains private residences in six major community associations, including, the Newport Ridge Community Association, Newport Ridge North Community Association, Newport Coast Community Association, Ziani Community Association, Pelican Point Community Association, and Crystal Cove Community Association. In January 1, 2002, the City annexed the Newport Coast community, and in doing so, agreed to assume trash collection services for area residents. Currently there are approximately 3,478 homes (as of February 2007) in the Newport Coast area of the City. Since the area is still in development, it is expected that several hundred homes will be added over the next 5 years. As new homes are built, they will also require fully automated residential trash collection services. Bin service in the Newport Coast area will not be included with this agreement. Current service areas include neighborhoods along Newport Coast Drive from Coast Highway East to the 73 freeway in the eastern section of the City. Attachment 1 is a map of the Newport Coast area showing collection areas highlighted in yellow. The following table shows the number of homes, containers, and tonnage collected in the Newport Coast area. This data is presented for information only and the City of Newport Beach accepts no responsibility for the accuracy of this data. All prospective bidders should take whatever steps they feel are necessary El to verify the number of homes, containers, routes, and collection area in preparing their proposals. Collection Area Information (As of Feb 2007) 2004 2005 2006 2007 Number of Homes 2,930 3,223 3,397 3,478 Tonnage Collected Trash 4,468 4,870 4,929 Mixed Recyclables 2,247 2,253 2,310 Total 6,715 7,123 7,239 5 I. Solid Waste Collection Requirements The following are a summary of the requirements for operation of fully automated refuse collection services in the Newport Coast area of the City of Newport Beach. The Contractor shall at all times comply with and maintain in good standing its non - exclusive commercial solid waste franchise agreement with the City. The contractor shall be responsible for all labor, equipment, disposal costs, and incidental costs associated with providing this service as an independent contractor. In addition, all collection, recycling and disposal activities of residential solid waste materials will be done in accordance with all applicable City ordinances and State mandates. 1. Containers The Contractor will provide fully automated solid waste and recyclable material containers for residential customers. The automated solid waste container will have suitable handles and wheels, tight- fitting covers for holding garbage without leakage or escape of odors; and be constructed of watertight metal or plastic. The City shall approve the color of all solid waste containers used. Containers for municipal solid waste and recyclable materials will be offered to customers in the size of 96 gallons. Customers will be allowed to request a smaller size container, if desired. If a customer requests a smaller container, the contractor will provide one to that customer within 14 days. 2. Additional Solid Waste Collection Services The Contractor will provide a bulky item pickup twice per year for each single - family residence with a limit of 4 items per request. Bulk item collection shall occur within one week of request by customer and shall be collected on the same day as trash and recycling collection. The Contractor will provide Christmas tree collection services during the first two weeks following Christmas day. 3. Waste Collection Days/Times The Contractor will collect solid waste and recyclable materials at intervals not less than once per week. Collection of solid wastes and recyclable materials may not commence earlier than 7:00 a.m. and will stop no later than 6:30 p.m. each collection day. The collection days for Newport Coast are currently Monday, Tuesday, Wednesday and Friday and may not be changed without City approval. In no event shall the City approve a request to collect on Saturday or Sunday unless authorized by the City's General Services Director. No change to the current schedule will be considered with less than 60 days notice to the City. iy 4. Waste Disposal Requirements /Recycling Requirements The Contractor will dispose of all solid waste collected and transported at a State certified /licensed landfill, State certified /licensed transfer station, State certified /licensed recycling facility or State certified /licensed materials recovery facility which is lawfully authorized to accept that specific type of solid waste material. The Contractor will be responsible for payment of all fees imposed for disposal. The Contractor will collect the following types of recyclable materials from residential customers: newsprint; cardboard; plastic containers; glass containers; and aluminum containers. The Contractor must also meet the City's recycling requirement of at least 40% in Newport Coast. 5. Fee Increases The Contractor will be entitled to an annual fee increased based on increases in the Consumer Price Index (CPI — all urban consumers for the Los Angeles, Anaheim, and Riverside area) for the 12 months proceeding the prior June index, provided that the CPI increase shall not exceed 3% per 12 month period. 6. Tonnage Reporting The Contractor will be required to submit a monthly report to the City which provides information on the solid waste disposal and recycling operations, within the Newport Coast area of the City of Newport Beach in order to evaluate the Contractor's recycling program. 7. Insurance Without limiting Contractor's indemnification of City, Contractor shall obtain, provide and maintain at its own expense during the term of this Agreement, a policy or policies of liability insurance of the type and amounts described below and in a form satisfactory to City. A. Certificates of Insurance. Contractor shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Insurance certificates must be approved by City's Risk Manager prior to commencement of the service contract. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. B. Signature. A person authorized by the insurer to bind coverage on its behalf shall sign certification of all required policies. 7 C. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact insurance policies in the State of California, with an assigned policyholders' Rating of A (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. D. Coverage Requirements. 1. Workers' Compensation Coverage. Contractor shall maintain statutory Workers' Compensation Insurance and one million dollars ($1,000,000) Employer's Liability Insurance for his or her employees in accordance with the laws of the State of California. Any notice of cancellation or non - renewal of all Workers' Compensation policies must be received by City at least thirty (30) calendar days (10 calendar days written notice of non - payment of premium) prior to such change. The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from work performed by Contractor that relates in any way to this Agreement and provide as such by a waiver of subrogation endorsement. 2. General Liability Coverage. Contractor shall maintain commercial general liability insurance in an amount not less than two million dollars ($2,000,000) per occurrence for bodily injury, personal injury, and property damage, including without limitation, contractual liability. If commercial general liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement, or the general aggregate limit shall be at least twice the required occurrence limit. 3. Automobile Liability Coverage. Contractor shall maintain commercial vehicle and automobile insurance covering bodily injury and property damage for all activities of the Contract arising out of or in connection with work to be performed under this Agreement, including coverage for any owned, hired, non -owned or rented vehicles, in an amount not less than five million dollars ($5,000,000) combined single limit for each occurrence. E. Endorsements. Each general liability and automobile liability insurance policy shall be endorsed with the following specific language: 1. The City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Contractor. 2. This policy shall be considered primary insurance as respects to City, its elected or appointed officers, officials, employees, agents and volunteers as respects to all claims, losses, or liability arising directly or 0 indirectly from the Contractor's operations or services provided to City. Any insurance maintained by City, including any self- insured retention City may have, shall be considered excess insurance only and not contributory with the insurance provided hereunder. 3. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. 4. The insurer waives all rights of subrogation against City, its elected or appointed officers, officials, employees, agents and volunteers. 5. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its elected or appointed officers, officials, employees, agents or volunteers. 6. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits, by either party except after thirty (30) calendar days (10 calendar days written notice of non- payment of premium) written notice has been received by City. F. Timely Notice of Claims. Contractor shall give City prompt and timely notice of claim(s) made or suit instituted arising out of or resulting from Contractor's performance under this Agreement. G. Additional Insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work. 8. Guarantees The Contractor will file with the City a performance bond in the amount of one hundred percent (100 %) of six months of the contract price payable to the City for all losses and damages the City may sustain as a result of any act or omission of the Contractor, including its employees, agents, and subcontractors arising from the operation or termination of the services under the agreement. 9. Equipment Requirements The Contractor will use alternative fuel vehicles approved by the South Coast Air Quality Management District for fully automated refuse collection services. Vehicles must meet all requirements specified per AQMD Rule 1193. Vehicles used for collection services must be fully automated side - loading refuse trucks, using a fully mechanized arm to pick up and dump automated waste collection containers. Drivers should not exit the vehicle to assist with securing the containers to, or lifting the containers into, the refuse collection truck. All vehicles 0 shall be properly maintained, kept clean and in good repair, and be uniformly painted. All vehicles must pass the required periodic "BIT" inspection and provide evidence to the City upon request. Vehicles that do not pass the inspection will not be allowed to operate within City limits until such documentation is provided. Should a hydraulic or other tvpe of material spill occur as a result of collection services, Contractor shall notify the City withinl hour. 10. Customer Service Surveys The Contractor will conduct customer service studies to help the City evaluate performance. At the completion of 6 (six) months, and every year thereafter, the City shall provide a list of questions that shall be used in the customer service survey. At the Contractor's expense, the Contractor will prepare and mail a survev form /card to each Newport Coast residence serviced for refuse collection on record. All survey forms and cards will be mailed directly from the resident to the City at the contractor's expense, via business reply mail. The City shall share the results of the survey with the Contractor. Service evaluation levels will be determined during the negotiation period following the council award of contract. 11. Defined Service Levels Contractor shall meet defined service levels in performance with residential refuse collection services in Newport Coast. Service levels shall include: • Weekly collection of refuse materials from each residence on record with Contractor. • Refuse collection in accordance with the provisions of the City's commercial non - exclusive solid waste franchise agreement and all applicable City ordinances and State mandates. • Perform collection of materials not earlier than 7:00 a.m. and not later than 6:30 p.m. Monday through Friday. • Provide a bulkv item pickup twice per year for each single - family residence with a limit of 4 items per request. • Provide curbside collection of Christmas trees on the first two regularly scheduled collection days after Christmas Day. • Provide a monthly report to the City relating to the City's AB 939 compliance requirements. • Provide a customer service survey, at Contractor's cost, at the completion of six months and every Year thereafter. • Utilize fully automated alternative fuel vehicles approved by the South Coast Air Quality Management District for refuse collection services. 10 • , Provide all `BIT" inspection and citation records for vehicles used in refuse collection services. 12. Work Deficiencies Failure to meet defined service levels shall be considered a work deficiency and must be corrected in a timeframe per the City's discretion. Written notification of deficiency may be hand delivered, emailed, faxed or mailed. As soon as the Contractor has corrected the listed deficiency, the Contractor shall notify the City and request inspection of the corrective work. Deficiencies listed in the Notice of Deficiencv shall not be considered as having been corrected until the City has had the opportunity to confirm that the deficiency has been corrected and approve the corrected work in writing. Failure to correct any deficiencies within the timeframe specified by the City may, in the City's sole discretion, result in action being taken by the City, including, but not limited to the followinq: written warnings. a deficiency fine of $250 per incidence, a deficiency fine of $250 per day that the work deficiency is not corrected, or the suspension or termination of the agreement. 11 II. Proposal Information The following is required information for submitting a proposal to the City of Newport Beach for Residential Solid Waste Collection and Recycling Services in Newport Coast. Three (3) bound or stapled copies of the Proposal should be submitted, accompanied by a cover letter signed by the person with authorization to execute a contract between the Contractor and the City. The letter should summarize the key elements of the proposal. 1. Company Information Please provide information about your firm, including corporate officers, stockholders with greater than a 10% holding, mailing address, contact information, and other useful information about your organization. 2. Related Experience Please provide recent, directly related public agency experience involving automated solid waste and recyclable materials collection services. Include on each listing the name of the agency; description of services provided (automated collection, bin collection); primary agency contact, address and telephone number; dates for the contract; and number of customers served. At least 5 (five) references should be included. For each reference, indicate the reference's name, organization affiliation, title, mailing address, and telephone number. The City of Newport Beach reserves the right to contact any of the organization or individuals listed. 3. Fees /Cost Information Please submit a fee schedule for automated residential collection services. Please note that the prices submitted in the fee schedule will be valid for one year until a CPI -based fee increase will be allowed. Use the attached fee schedule (Attachment 2) or create your own fee schedule. In Section A, please state the monthly base fee that will be charged for regular collection services as described in the scope of services. In Section B, please state the monthly disposal fee that will be charged for all costs incurred with disposing and recycling materials. In Section C, please state the cost of providing an additional 96 gallon container at one single family residence. Please clearly specify any other charges or fees, which would be part of your company policy, i.e., fees for overloaded containers, material restrictions, etc. Use the attached cost schedule (Attachment 3) to submit a total cost for automated collection services. Using the monthly service fees provided in Attachment 2, please calculate a total cost for each cost component for services, including base fees, disposal fees, and additional refuse containers (not to exceed 10% of total billed customers). Extra recycling containers shall be 12 provided at customers request at no additional cost to City. State the total cost for monthly and annual cost for collection services. 4. Equipment List All vehicles used for fully automated collection services must use an alternative fuel approved by the South Coast Air Quality Management District. Provide the make, model, age and type of collection vehicles to be used for automated solid waste and recycling services. Vehicles used for collection services must be fully automated side - loading refuse trucks, using a fully mechanized arm to pick up and dump automated waste collection containers. Drivers should not exit the vehicle to assist with securing the container to or lifting the container into the refuse collection truck. 5. Employee Safety Training and Equipment Safety Records Describe your organization's training and health and safety programs for your employees. Describe employee response procedure when hazardous wastes are encountered during collection activities. Include any employee manuals, as appropriate. Provide all equipment safety, BIT inspection, and CHP incident reports, records or citations for 2005. 2006, and 2007. 6. Waste Collection /Recycling Plans Describe the waste collection and recycling plans appropriate for the City of Newport Beach, including collection times, routes, scheduled time of collections and other policies and /or procedures. Fully describe how your company will meet the 40% curbside recycling requirement. Include the facility name and address where the recycling materials will be delivered and sorted. Include type of permits for facility, i.e. certified to receive recyclable materials, household refuse, etc. State the permitted total tonnage allowed (capacity) at facility per day and current tonnage of materials received. 7. Implementation Plan Provide an implementation plan describing the company's plan for facilitating a smooth transition of services and, if applicable, a smooth transition between service providers. The proposal must clearly demonstrate that the company has the ability to implement the services including equipment, personnel, administration, and maintenance requirements. 13 B. Financial Information Submit a complied audited financial statement for the past three (3) fiscal years. Include balance sheets and profit and loss statements, as appropriate. All financial information submitted will be held confidential to the extent permitted by law. 9. Guarantees Provide a letter from a surety stating your organization's ability to obtain a performance bond in the amount of one hundred percent (100 %) of six months of the contract. 14 III. Evaluation Criteria Proposals submitted to the City of Newport Beach for Residential Solid Waste Collection and Recycling Services in Newport Coast will be evaluated by a committee consisting of City staff and two to three elected officials. Proposal evaluation will include, but not be limited to: • Responsiveness to the Request for Proposals • Previous Firm Experience with Fully Automated Residential Collection Services • Fee ScheduleslTotal Cost • Waste Collection Recycling Plan Note that the City of Newport Beach reserves the right to accept or reject any proposal submitted for the residential solid waste collection and recycling services. Fee schedules and costs will not be the sole criteria for award of this agreement. Other criteria will be considered. 15 �oo� flip �u� m i o b v c m Z a o n I a _ J b0 Sp \ a / lip Attachment 2 Residential Solid Waste Collection Services Per Residence Rate (Based on Weekly Collection Service) A. Monthly Base Service Rate Per Residence Based on 1 (one), 96 gallon trash container: $ and 1 (one), 96 gallon recycling container B. Monthly Disposal Fee Rate Per Residence Based on 1 (one), single family residence: $_ C. Monthly Rate Additional Container Fee Per Residence Based on 1 (one), 96 gallon trash container: $ 17 Attachment 3 Residential Solid Waste Collection Services Total Cost for Services A. Base Service Charge Monthly Base Service Rate Per Residence: $ Single Family Households: 4,000 Total Cost, Monthly Base Service Rate: $ B. Disposal Service Charge Monthly Disposal Service Rate Per Residence: $ Single Family Households: 4,000 Total Cost, Monthly Disposal Service Rate: $ C. Additional Container Service Charge Monthly Additional Container Service Rate Per Residence: $ Additional Containers: 400 Total Cost, Monthly Additional Container Service Rate: $. Total Monthly Cost (A+B+C): $ Total Annual Cost: $ iu wYSS� nanw.6rt�ne�rtM WASTE MANAGEMENT . Orange Counry District 1800 South Oland Avenue . Santa Ana CA 92705 ... . . (714) 480 -2300 . _ (714) 568.6626 Fax May 17, 2006 Mr. Homer Bludau City Manager City of Newport Beach P.O: Box 1768 Newport Beach, CA. 92658 -8915 . Re: Solid Waste Collection and Recycling Agreement Dear Mr. Bludau, At the request of the City, Waste Management is agreeable to extend the current agreement that expires on June 3.0, 2007 for an additional 3 months. The amended contract will expire on September 30, 2007. It is our understanding the City wishes to re- solicit competitive proposals for solid waste collection and recycling services to residential customers in the Newport Coast area of the City. All other terms and conditions will remain the same. We look forward to working in partnership with City in continuing to provide outstanding customer service. If you have any questions, please contract me at 714-480 - 2353 or my cell number at 714- 920 - 5740. Thank you. SmcereIy,� David Ross Waste Management From everyday collection to environmental protection, Think Green° Think Waste Management. ®ilYnttlov YlRl�a°�N>k <AYR�