HomeMy WebLinkAboutReso 90-09 AVI Solid Waste AgmtRESOLUTION NO. 90 - 09
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
APPROVING AMENDMENT N0.3 TO THE AGREEMENT WITH AMADOR VALLEY
INDUSTRIES FOR SOLID WASTE COLLECTION SERVICES
WHEREAS, the City of Dublin and Amador Valley Industries, LLC (AVI) are parties to a Collection
Service Agreement between the City of Dublin and Amador Valley Industries, LLC (the Agreement), dated
January 12, 2005; and
WHEREAS, the Agreement with AVI allows for an annual compensation adjustment in accordance
with specified formulas; and
WHEREAS, the first two pages of Exhibit 2 to the Agreement, located on pages 78 and 79 of the
Agreement, identify the indices to be used in calculating the RRI Factor, defined in Section 5.05.1.1 of the
Agreement; and
WHEREAS, certain of those indices are no longer produced by the Bureau of Labor Statistics; and
WHEREAS, the Bureau of Labor Statistics has comparable indices to those previously used in
calculating the RRI Factor; and
WHEREAS, it is necessary to amend the Agreement to incorporate appropriate indices for calculating
the RRI Factor, allowing for the continuation of the annual rate adjustment as required by the Collection
Services Agreement.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin hereby
approves the Third Amendment to the Agreement with Amador Valley Industries, LLC (attached hereto as
Exhibit A .
BE IT FURTHER RESOLVED that the City Council of the City of Dublin hereby authorizes the City
Manager to execute the Third Amendment to the Agreement.
PASSED, APPROVED AND ADOPTED this 23rd day of June, 2009, by the following vote:
AYES: Councilmembers Biddle, Hart, Hildenbrand, Scholz, and Mayor Sbranti
NOES: None
ABSENT: None
ABSTAIN: None
Mayor
ATTEST•
P~:~-
City Clerk
Reso No. 90 -09, Adopted 6-23-09, Item 6.1 Page 1 of 1
EXHIBIT A
THIRD AMENDMENT
TO THE COLLECTION SERVICE AGREEMENT BETWEEN THE
CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES, LLC
This Third Amendment to Collection Service Agreement, dated as of
2009 (the "Amendment") modifies and amends that certain "Collection Service Agreement,"
dated January 12, 2005, as previously amended (the "Agreement"), between the City of Dublin
("CITY") and Amador Valley Industries, LLC ("CONTRACTOR"). Capitalized terms used
herein and not otherwise defined shall have the meanings ascribed to such terms in the
Agreement.
Recitals
WHEREAS, the Agreement sets forth the respective rights and obligations of the parties
with respect to the Collection of Solid Waste and Organic Materials and grants CONTRACTOR
an exclusive right to provide Collection Services within the Service Area;
WHEREAS, on June 20, 2006, the parties executed a First Amendment to the
Agreement in order to modify certain provisions in Exhibit 2 of the Agreement relating to the
Compensation Adjustment Model; and
WHEREAS, on June 17, 2008, the parties executed a Second Amendment to the
Agreement in order to provide for: compensation to CONTRACTOR for the collection of
Recyclable Materials produced by Commercial Service Units; to modify CONTRACTOR'S
obligation to provide Large Item Collection Service to City Service Units; to require
CONTRACTOR to perform a minimum of two waste audits per day; to require CONTRACTOR
to increase its Commercial and MFD outreach and education programs and to perform at least
twelve campaigns each Agreement Year and to require CONTRACTOR to submit an annual
diversion plan for approval by the City each Agreement Year; and
WHEREAS, the parties desire to further amend the Agreement to modify the indices
used to calculate the RRI Factor as listed in Exhibit 2, pages 78 and 79, of the Collection
Services Agreement.
NOW, THEREFORE, for good and valuable consideration, the sufficiency of which is
hereby acknowledged, CITY and CONTRACTOR hereby agree to amend the Agreement as
follows:
Section 1. The first two pages of Exhibit 2, on pages 78 through 79, of the Agreement are
hereby deleted and replaced with new pages 78 through 79 to read as follows:
EXHIBIT A
Collection Service Agreement
Exhibit 2
City of Dublin, CA
Compensation Adjustment
RRI Financial Statement Format
Operating Costs
Labor: Series ID: ceu60566210008 Waste Collection -Average Hourly Earnings
List all administrative, officer, operation and maintenance salary accounts.
List payroll tax accounts directly related to the above salary accounts.
Vehicle Replacement: Series ID: wpu141301 Transportation Equipment -Truck & Bus Bodies
Sold Separately
List all Collection and Collection related vehicle depreciation accounts.
List all vehicle lease or rental accounts related to Collection or Collection related
vehicles
Vehicle Maintenance: Series ID: wpul 1440378 Machinery & Equipment-Parts, Attachments
and Accessories
List all Collection and Collection related vehicle parts accounts.
All Other: Series ID: wpu11440378 Machinery & Equipment-Parts, Attachments and
Accessories
List all other expense accounts related to the services provided under this
Agreement. This category includes all insurance including general liability, fire,
truck damage, extended coverage and employee group medical and life; rent on
property, truck licenses and permits; real and personal property taxes; telephone
and other utilities; employee uniforms; safety equipment; general yard repairs and
maintenance; office supplies; postage; trade association dues and subscriptions;
advertising; employee retirement or profit sharing contributions; and
miscellaneous other expenses.
Page 78 City of Dublin
EXHIBIT A
Collection Service Agreement
Exhibit 2
City of Dublin, CA
Com ensation Adjustment Model
The annual compensation adjustment is calculated in accordance with the procedures set forth in Article 5 of
the Collection Service Agreement. This exhibit is provided as an example of how the individual calculations are
used to develo the overall com ensation
Step Collection Com ensation Element
1
1a Calculate RRI Factor
Use model to Input current ear indices Annual Avera a Calendar Year 12/31
Indices 2004 2005 2006 2007
Series ID: ceu60566210008 Waste Collection -Average
Hourl Eamin s
12.97
14.48
13.64
15.33
Series ID: wpu141301 Transportation Equipment- Truck &
Bus Bodies Sold S aratel
169.7
171.40
173.60
174.60
Series ID: wpu11440378 Machinery & Equipment-Parts,
Attachments and Accessories
129.5
131.30
132.40
135.10
Series ID: wpu11440378 Machinery &Equipment-Parts,
Attachments and Accessories
180.2
189.90
193.00
196.40
1b Model calculates % than a in currentand prior ear indices
Delta % Previous Year to Year .annual Avera a Calendar Year 12/31
_00-1 2005 2006 2007
Series ID: ceu60566210008 Waste Collection -Average
Hourly Eatnin s
11.64%
5.17%
5.87%
Series ID: wpu141301 Transportation Equipment-Truck &
Bus Bodies Sold S aratel ~
1.00%
2.30%
1.87%
Series ID: wpu11440378 Machinery & Equipment-Parts,
Attachments and Accessories
1.39%
2.24%
2.89%
Series ID: wpu11440378 Machinery & Equipment-Parts,
Attachments and Accessories
4.04%
5.33%
2.57%
1c Use "RRI in ut" Module to in ut CONTRACTOR financial data
Contractor Financial Data Annual Avera a Calendar Year 12/31
200 2005 2006 2007
Labor $ 1,375,000 $1,443,750 $1,515,938
Vehicle Replacement $ 248,000 $ 260,400 $ 273,420
Vehicle Maintenance $ 246,000 $ 258,300 $ 271,215
All Other $ 2,779,000 $2,917,950 $3,063,848
$ 4,648,000 $4,880,400 $5,124,420
1 d Model calculat wei htin 'factor for each cate o
Contractor Wei htin % Annual Avera a Calendar Year 12/31
'_004 2005 2006 2007
Labor 29.58% 29.58% 29.58%
Vehicle Re lacement 5.34% 5.34% 5.34%
Vehicle Maintenance 5.29% 5.29% 5.29%
All Other 59.79% 59.79% 59.79%
Total 100.00% 100.00% 100.00%
1e Model multiplies index change (1b) b weighting factor (1 d)
RRI % Annual Avera a Calendar Year 12/31
2004 2005 2006 2007
Series ID: ceu60566210008 Waste Collection -Average
Hourly Earnin s
3.44%
1.53%
1.74%
Series ID: wpu141301 Transportation Equipment- Truck &
Bus Bodies Sold Se aratel
0.05%
0.12%
0.10%
Series ID: wpu11440378 Machinery &Equipment-Parts,
Attachments and Accessories
0.07%
0.12%
0.15%
Series ID: wpu 11440378 Machinery &Equipment-Parts,
Attachments and Accessories
1.81 %
2.39%
1.15%
RRI Factor 5.38% 4.16% 3.14%
Allowed RRI Factor 5.00% 4.16% 3.14%
Page 79
EXHIBIT A
Section 2. In the event of a conflict between the Agreement and this Amendment, this
Amendment will control. Except to the extent inconsistent with this Amendment, the Parties
ratify and confirm all of the terms and conditions of the Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of
the date and year first above written.
CITY OF DUBLIN
Dated:
Attest:
By:
Caroline Soto
City Clerk
APPROVED AS TO FORM:
By:
John D. Bakker
City Attorney
Dated:
By:
Joni L. Pattillo
City Manager
AMADOR VALLEY INDUSTRIES, LLC,
a California Limited Liability Company
By:
Its:
1245256.1