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Home My WebLink About04 - Newport Coast Residential Refuse CollectionCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 4 August 22, 2006 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: General Services Department Mark Harmon, Director, (949) 644 -3055 mharmon(a)city. newoort- beach.ca. us SUBJECT: Amend Contract for Newport Coast Residential Refuse Collection ISSUE: Should the City amend the term of the contract agreement with Waste Management of Orange County (WMOC) to provide residential refuse collection services in the Newport Coast area? RECOMMENDATION: Amend the contract agreement with WMOC to provide residential refuse collection services in the Newport Coast area through January 1, 2010. DISCUSSION: Background: The City of Newport Beach officially annexed the Newport Coast area on January 1, 2002. At the time of the annexation, WMOC provided residential refuse collection services to that area under an exclusive franchise agreement with Orange County. 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 years. At their February 12, 2002 meeting, the City Council approved a 5 -year Agreement with WMOC for refuse collection services through January 1, 2007. Staff is recommending that the Term of the Agreement be amended to allow WMOC to continue service in the Newport Coast area through January 1, 2010. WMOC currently provides automated refuse and recycling services in the Newport Coast area. The time extension will allow the City to evaluate automated refuse collection in other areas of the City, and determine if the public bid process or City services would be best for the Amend Contract for Newport Coast Residential Refuse Collection August 22, 2006 Page 2 Newport Coast area. All other terms and conditions of the original Agreement will remain the same. 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). Funding Availability: Funding for this agreement was included in the Fiscal Year 2006 -07 budget. The City currently pays a monthly fee of $16.45 per residence to WMOC for weekly refuse and recycling collection in Newport Coast. WMOC currently serves approximately 3,400 homes. The original agreement includes an annual fee adjustment based on CPI (not to exceed 3 %). Submitted by: Mark Harmon ' " General Services Director Attachments: 1. Waste Management Letter 2. Contract Amendment VV--V� August 14, 2006 Mr. Mark Harmon General Services Director City of Newport Beach 3300 Newport Blvd. P.O. Box 1768 Newport Brach, CA. 92658 -8915 RE: Franchise Agreement Dear Mr. Harmon, WASTE MANAGEMENT Orange County District 1800 South Grand Avcnuc Santa Ana. CA 92705 (714) 480 -2300 Phone (714).568 -6626 Fax Waste Management of Orange County is desirous to extend the current franchise agreement originally dated January 1, 2002. The new agreement shall be for a period of 3 additional years. The effective date shall be January 1, 2007 and expire January 1, 2010. The terms and conditions will remain the same. WMOC would like to extend our appreciation to the City for the continued opportunity to provide solid waste collection and recycling services to the residents of Newport Beach. Customer service excellence and safety will continue to be our priorities. We look forward to expanding our partnership with the City. Should you have any questions please call me directly at 714 -480 -2353. My cell number is 714 - 920 -5740. Davi4Rss, Sr. District Management Waste Management of Orange County A nivim .... ..f W:,,tc Mamvtemcnt U,11ccrion and Rccyc4np,. Inc. AMENDMENT NO. 1 TO AGREEMENT WITH USA WASTE OF CALIFORNIA, INC., DBA WASTE MANAGEMENT OF ORANGE COUNTY FOR REFUSE COLLECTION SERVICES THIS AMENDMENT NO. 1 TO CONTRACTOR AGREEMENT, entered into this day of August 2006, by and between the CITY OF NEWPORT BEACH, a municipal corporation (hereinafter referred to as "City "), and USA WASTE OF CALIFORNIA, INC., DBA WASTE MANAGEMENT OF ORANGE COUNTY, A California Corporation, whose office is located at 1800 South Grand Avenue, Santa Ana, California 92705 (hereinafter referred to as "Contractor'), is made with reference to the following: RECITALS A. On June 1, 2002, City and Contractor entered into an Agreement in which Contractor was hired to provide refuse collection services for residential properties in Newport Coast (hereinafter referred to as the "Agreement "). B. NOTE: PLEASE ADD RECITAL WHY WE ARE EXTENDING. C. To this end, City and Contractor mutually desire to amend the Agreement, as provided in this Amendment No. 1. NOW, THEREFORE, the parties hereto agree as follows: 1. Section 1 of the Agreement shall be amended to read as follows: "The Term of the Agreement shall commence on January 1, 2002 and shall terminate on January 1, 2010, unless terminated earlier as set forth herein. 2. Section 24 of the Agreement shall be amended to read as follows: "Contractor agrees that the Agreement, as amended by Amendment No. 1, shall supercede all previous agreements to provide residential refuse collection services in the Newport Coast area including agreements with the County of Orange. Contractor waives and releases all rights to provide services except as provided in the Agreement and Amendment No. 1. Contractor also agrees that: (a) on December 19, 2001, the City mailed and Contractor received the notice required by Public Resources Code section 49520; (b) by providing the December 19, 2001 notice, City fully met any and all obligations it has pursuant to Public Resources Code section 49520 including, but not limited to, notice obligations; (c) the Contractor shall have no right to continue service pursuant to Public Resources Code section 49520, or otherwise, beyond the term of this Agreement as amended by Amendment No. 1; and (d) the City shall not be required to provide any additional notice under Public Resources Code section 49520 as a result of the extension of the Term of the Agreement by and through this Amendment No. 1. Contractor expressly waives and releases any rights it may have under Public Resources Code section 49520 to continue to provide services beyond the Term of this Agreement, as amended by Amendment No. 1 and Contractor agrees that upon termination of this Agreement, Contractor will not contest City's right to provide services or contract with any person or entity pursuant to a Request for Proposal Process." 3. Except as expressly modified herein, all other provisions, terms, and covenants set forth in the Agreement shall remain unchanged and shall be in full force and effect. [SIGNATURES ON FOLLOWING PAGE] IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 1 on the date first above written. APPROVED AS TO FORM: 4, c. i A- Aaron C. Harp, Assistant City Attorney for the City of Newport Beach ATTEST: LaVonne Harkless, City Clerk CITY OF NEWPORT BEACH, A Municipal Corporation Don Webb, Mayor for the City of Newport Beach CONTRACTOR: USA WASTE OF CALIFORNIA, INC., DBA WASTE MANAGEMENT OF ORANGE COUNTY (Corporate Officer) Title: Print Name: By: (Financial Officer) Title: Print Name: