HomeMy WebLinkAboutItem 8.4 Commercial Recycling (2)
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CITY CLERK
File # D~w[Q]-[f][Q]
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: (January 19,1999)
SUBJECT:
Expanded Commercial Recycling Program
Report Prepared by: Sue Barnes, Management Assistant
ATTACHMENTS:
1. Proposal for Expanded Commercial Recycling Program,
submitted December 21, 1998, by Waste Management
2. Comparison of Commercial Garbage Rates and
Commercial Recycling Rates
/ 3. Agreement for Services, outlining scope of work and
payment schedule for 16-month program
RECOMMENDATION: ~
Approve the use of mitigation funds for an expanded
commercial recycling program
. FINANCIAL STATEMENT:
The expanded program will be partially funded by the City
of Dublin, through mitigation funding received from the
Alameda County Waste Management Authority ($34,511 for
the first 16 months of the program). The remaining cost of
the program will be covered by rates charged to participan'.s.
Sufficient funds are included in the 1998-99 budget for the
portion of the contract amount to be paid in this fiscal year.
CITY COUNCIL GOALS:
The 1998/99 goals adopted by City Council include two high-priority goals related to commercial
recycling:
1. Review and design improvements to the Commercial Recycling Program to address poor
participation in existing pilot program and to address expenditure of unanticipated Alameda
County Waste Management Authority grant.
2. Work with the School District through the Liaison committee to reduce waste stream.
The expanded commercial recycling program will address both of these goals.
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F: ba rn es\garba be\co m recadd
COPIES TO: Annette Borges, Waste Management
ITEM NO.-----8d
COMMERCIAL RECYCLING BACKGROUND:
AB 939 requires that the City divert 50% of waste from the landfill by the year 2000. Per the City's
Source Reduction and Recycling Element (SRRE), 75% ofthe waste generated in the City of Dublin is .
generated by commercial enterprises. Only 25% is generated by residential uses. In order to achieve the
goals set by AB 939 for the year 2000, the City must focus on achieving higher diversion rates from
commercial uses.
The economics of recycling make it very difficult to increase diversion rates for commercial uses. For the
most part, the market price for recycled materials is less than the cost to collect and transport the
materials. For some large businesses, these difficulties can be overcome; however, it is less likely to be
cost-effective for businesses generating small amounts of waste to recycle. As a result, market forces
alone are not likely to induce commercial recycling practices that would result in achievement of AB 939
goals. Therefore, subsidized programs are much more likely to encourage participation.
In fiscal year 1996/97, the Alameda County Waste Management Authority (ACWMA) began awarding
annual "mitigation" grants to Alameda County Cities. Mitigation funds are those fees collected on
imported garbage placed in Alameda County landfills from other counties, such as Contra Costa County
and San Francisco County. While there is no guarantee that these grants will be awarded indefinitely, the
Waste Management Authority has committed to awarding the grants annually to all cities in the county
through at least fiscal year 2000/2001. The following chart outlines grants that the City of Dublin has
received in past years:
1996/97
$35,063
1997/98
$33,329
1998/99
$32,606 (anticipated)
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It is anticipated that future grant amounts will be similar to the past figures. The mitigation monies
received from ACWMA are considered restricted funds, and must be used for non-residential recycling
programs.
At year-end, the City Council has reserved any fund balance associated with the Mitigation grants. The
following table shows the balance in the account for the past two fiscal years:
Date
6/30/97
6/30/98
Balance Available
$24,550
$55,940 (does not include 98/99 grant)
CURRENT COMMERCIAL RECYCLING PROGRAM:
In August 1996, the City Council authorized a pilot commercial recycling program, which was
implemented by Livermore Dublin Disposal (now Waste Management). This program is currently in use,
and is subsidized by 1996/97 mitigation funds, so that the cost to the user is minimized. The City also
funded recycling containers on a one-time basis, which helped reduce the on-going rate as well.
Businesses are currently limited to recycling only specified office paper, in addition to food and beverage
bottles, aluminum and metal cans, plastic bottles, corrugated cardboard and newspaper. Office paper, .
newspaper, and cardboard must be separated, and placed in three separate bins.
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Currently, only 60 businesses, out of 549 commercial accounts, are taking part in the program. This total
includes school facilities, which are serviced as commercial accounts. Because of the low participation
rate, City staff has been working with Waste Management staff to revise the commercial recycling
program.
SCHOOL DISTRICT RECYCLING PROGRAM:
As a commercial account, the schools will be included in the expanded commercial recycling program.
City staff and Waste Management will work with district representatives to design a program geared more
specifically for the schools within the parameters of the expanded commercial recycling program. The
success of this program will depend to a great extent on the support of district staff.
The school district will receive an added incentive as well. The City of Dublin received a $9,850 grant
from the Alameda County Waste Management Authority, which is to be used to purchase recycling
containers. City staff determined that the grant could be best used to augment the school program. City
staff met with representatives from Waste Management and the School District in December to discuss
container types. Staff is currently awaiting word on the District's final choices, so the containers can be
ordered.
PROPOSED PROGRAM:
The proposed program is enclosed as "Attachment I." Under the expanded program, businesses will be
able to recycle additional paper products, and will no longer have to separate paper, cardboard and
newspaper. The program consists of two components:
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1. "Anything That Tears," which includes envelopes, sticky notes, file folders, junk mail, glossy
paper, catalogs, cardboard, newspaper, and paperboard; and
2. "Mixed Container," which includes glass bottles, plastic bottles, and aluminum and tin cans
Businesses can choose to participate in either of the components individually, or both. It is hoped that this
expanded program will be easier to use, and therefore be of greater interest to commercial users.
Waste Management plans to aggressively market the new program. The company will hire an inside sales
person to make initial contacts with all commercial accounts in the City of Dublin. This person will send
direct mailings to all of the commercial accounts, and will follow up with telephone calls. Businesses can
then meet with Waste Management's recycling coordinator, who will assess their waste stream and show
them how their business can save money by participating in the commercial recycling program.
Waste Management plans to implement the new program in mid-March 1999. The company anticipates
that each of the 549 commercial customers in Dublin will be contacted within 4-5 months. While it is
difficult to anticipate participation rates with a new program, Waste Management projects that 40% of
Dublin businesses could be participating by the end of 1999. Based on this participation rate, the program
would divert approximately 780 tons of waste from the landfill annually, and bring the City closer to the
50% diversion rate required by the year 2000.
Waste Management is proposing a rate structure that allows businesses to save money if they recycle
. enough to reduce their garbage service level. Please note that commercial recycling programs are not part
of the current franchise agreement, and the City does not establish the commercial recycling rates.
With the new program, a one-yard "'Anything that Tears" container, picked up once per week, will cost
$19.00 per month, compared with $33.15 for a one-yard waste container. Large volume users can realize
even more significant savings. A 7-yard "Anything that Tears" container, picked up three times per week,
costs $445 per month, compared to $712.75 for a comparably sized waste container. For comparison
purposes, a table outlining commercial garbage and recycling rates is enclosed as "Attachment 2".
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CITY SUBSIDY REQUESTED:
Waste Management is requesting a subsidy from the City of Dublin to provide an economic incentive for
businesses to participate in the expanded program with a lower rate structure. The rates proposed by the
company, and outlined in the attached proposal, are anticipated. to generate $109,320 in revenue for the
first year. The cost of the program is estimated to be $135,203 for the first year.
The subsidy requested is for the difference between the projected revenue and expenses, or $25,883 for
the first year of operation. Since the program will begin in March, staff is recommending that the
program be funded initially for a 16-month period, so the renewal date will coincide with the fiscal year.
The City would pay a pro-rated amount of $8,628 for the remainder of this fiscal year, and $25,883 for
fiscal year 1999/2000, for a total of $34,511. Adequate mitigation funds are available to cover these
co sts.
IMP ACT ON GARBAGE COLLECTION FOR ENTIRE SYSTEM
The costs associated with supporting the regular garbage system will be impacted by the introduction of
any large-scale recycling program. If customers are reducing their subscription level, (i.e. moving from a
4-yard to a 3-yard container), this has impacts on the rate setting for regular garbage service. It is
expected that the new accounts generated by commercial development will offset this impact, however, .
the extent is currently unknown.
The City of Dublin is obligated to compensate Waste Management for a total of$3,081,880 for services
provided during the 1998/99 fiscal year. The majority ofthis total (approximately $1.8 million) is a fixed
cost associated with the establishment and operation of the garbage routes. This fixed cost will not
change, whether total revenues increase or decrease. The remainder of the total is variable costs
associated with disposal (this amount varies based on tonnages collected). Since the majority of the total
is for fixed costs, a reduction in revenues will not result in a corresponding reduction in costs. To the
extent that there is an actual decrease in the company's total Franchised Garbage Revenue, the City will
also experience a loss of franchise fees.
Recycling programs are not covered in the franchise agreement with Waste Management, so a separate
agreement for services is required "Attachment 3". This agreement covers the 16-month period from
March 1, 1999 to June 30, 2000. Prior to the end of the agreement, City staff will evaluate the
effectiveness of the program and make a recommendation for future participation and funding.
STAFF RECOMMENDATION:
Staff recommends that the City Council approve use of the City's mitigation grants to subsidize the
attached expanded commercial recycling program for 16 months, from March 1, 1999, to June 30, 2000.
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ATTACHMENT 1
VW\ft
WASTE MANAGEMENT
December 21, 1998
6175 Snulhfrnnt Road
Livermore. CA 94550
(925)44tJ)fQ
(925) 441.'-JJJ(3E1V,=
DEe 2 8 D
CITY Of- .1998
UUBLIN
Sue Barnes
Management Assistant
City of Dublin
P. Q. Box 2340
Dublin, CA 94568
Dear Sue:
Tnis letter is to outline the propoiied exp,,t-ided corr...mercial recycling program for the City of Dublin
The new and expanded conunercial recycling program has been designed to encourage businesses to
recycle in an easy and cost effective manner. This program is being expanded to enable businesses to
commingle mixed paper, newspaper, and junk mail in one bin. Beverage containers, glass, plastic,
aluminum and steel can be commingled too and placed in carts to be recycled.
The original commercial recycling program required businesses to separate white paper, newspaper and
corrugated cardboard. This new expanded program gives businesses the flexibility to recycle easier using
one container for newspaper, white paper, mixed paper, and junk mail. This program will inunediately
divert these materials from the landfill, helping meet the AB939 goals for the City of Dublin.
Livermore Dublin Disposal has estimated the program to cost $135,203. This cost includes labor, truck
cost, processing of recyclables, an inside sales person, brochures, and postage. Also included in this cost
is a 10% profit. The anticipated revenue for 170 customers is $109,320. Livermore Dublin Disposal
believes the difference of $25,883 is very insignificant for the 780 tons being diverted from the landfill.
This reflects 7.5% of the commercial waste stream in 1997. Livermore Dublin Disposal is asking a
subsidy to implement this program of $25,883 to assist the City of Dublin meet its recycling goals.
To achieve the anticipated revenue attached please find a proposed recycling rate schedule for this
program. With the increase in commercial rates in 1998, this program should be very acceptable to
commercial customers in Dublin.
To market this expanded program Livermore Dublin has put together a brochure and survey questions to
educate the businesses on their present waste stream. An inside sales person will be mailing these
brochures to prospective recycling commercial customers and foll(,wing up in a week with a t.:olcphoii;; call.
The sales person will help the customer evaluate their waste stream and set up an appointment with Sheila
Fagliano two days each week. Ifnecessary, the inside sales person or a supervisor will meet with the
customer to assist them with their recycling needs. The sales person will call approximately 15 - 17
customers each day to either set up an appointment or review their recycling surveys. Sheila Fagliano will
meet 5 - 6 customers twice a week. Every commercial customer in the City of Dublin will be contacted
within a four to five month period. Sheila Fagliano will meet with the customers to educate, train and
assist them with their containers for recycling. The City of Dublin has 549 commercial customers and
Livermore Dublin Disposal anticipates that at least 40% of them will be recycling by the third quarter of
1999.
A complete brochure has been submitted for your review. An original copy will be given to you for your
final determination.
The kickoff of this program should be around S1. Patrick's Day in March. We could prepare a press
release for the expanded recycling program along with notifying the residents of the three arumal cleanups
in the City of Dublin.
Livermore Dublin Disposal is very excited to implement this expanded recycling program to the businesses
in the City of Dublin in 1999.
If you have any questions or concerns, please do not hesitate to call me. I will be in the office on Tuesday
and Wednesday of this week, and Monday, Tuesday, and Wednesday of next week. Thanks in advance for
your assistance with this recycling program.
~~
Annette Borges
District Manager
Attachments
Cc: Julie Carter
Sheila Fagliano
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LIVERMORE DUBLIN DISPOSAL
. COMMERCIAL RECYCLING PROGRAM
CITY OF DUBLIN
Estimated Program Cost
Operational Cost
Labor:
832 Hours x $20.01 + Benefits $ 23,307
Truck Cost:
Includes Oil, Diesel, License, etc. 11,553
- Truck Maintenance (labor) 17,287
Truck Parts, Radio, Etc 5,066
Tires 1,431
Depreciation 2,068
Total Operating Costs $ 60,712
. Recycling Materials:
Processing Cost 780 x $40/tn $ 31 ,200
Sales & Marketing
Inside Sales Person $ 28,500
Direct Mailing/Postage 2,500
Total Sales & Marketing $ 31,000
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Estimated Cost $ 122,912
Profit 10% 12,291
TOTAL COST $ 135,203
Estimated Recycling Rate Revenue: $ 109,320
SUBSIDY REQUESTED $ 25,883
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LIVERMORE DUBLIN DISPOSAL
COMMERCIAL RECYCLING PROGRAM
CITY OF DUBLIN
Estimated Recycling Rate Revenue
108 Customers average account
$70 per month x 12
62 Customers average account
$25 per month x 12
TOTAL
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$ 90,720
18,600
$ 109,320
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. LIVERMORE DUBLIN DISPOSAL
COMMERCIAL RECYCLING PROGRAM
CITY OF DUBLIN
Route cost analysis ~ Dublin FEL
Labor Cost
Hours (2 days/wk) 16
Weeks/yr 52
Total estimated hours 832
Labor Rate $ 20.01
Benefits factor 1.4
Estimated annual labor $ 23,307
Truck Operating Cost
Motor oil $ 325
Gasoline 195
Diesel 6,732
Licenses 4,219
Truck Rental 13
. Truck washing 47
OvelWeight fines 22
Estimated annual truck operating $ 11 ,553
Truck Maintenance Cost
Estimated annual truck maintenance labor $ 17,287
Truck parts $ 4,215
Radio expense - equipment 338
Garage supplies & maintenance 84
Misc truck maintenance \.. 429
Estimated annual truck parts/other $ 5,066
Tire retreads $ 409
Tires & tubes 1,022
Estimated annual tires $ 1 ,431
Truck Depreciation Cost
Estimated truck depreciation $ 2,068
Total Estimated Costs $ 60,712
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PROPOSED
DUBLIN COMMERCIAL RECYCLING RATE 'SCHEDULE
"ANYTHING YOU CAN TEAR PROGRAM"
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1998
SIZE
1XWK
2XWK
3XWK
96 GALLON $ 19.00 N/A N/A
1 YARD $ 25.00 N/A N/A
2 YARD $ 48.00 N/A N/A
3 YARD $ 70.00 $ 139.00 $ 208.00
4 YARD $ 92.00 $ 183.00 $ 274.00
6 YARD $ 129.00 $ 257.00 $ 385.00
7 YARD $ 148.00 $ 296.00 $ 445.00 .
"CO-MINGLED CONTAINER RECYCLING PROGRAM"
SIZE
1XWK
\..
2XWK
3XWK
18 GALLON CRATES $
1 - 96 GALLON TOTER $
10.00
18.92
N/A
N/A
N/A
N/A
AH98004.ex
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MIXED CONTAINER RECYCLING
.hat goes in this cart or bin?
Acceptable Glass, Cans
& Plastic Bottles
· Soda Bottles
· Beer Bottles
· rood J <lrs
· Ketchup Bottles
· Wine Jnd Liquor Bottles
· Juice Containers, ete.
. All Aluminum and Meml Steel) ems
. On]\' Plastic Bottles with pm 1 or HDPE 2
on the bottom
Before placing; acceptable items into Mixed Container
carts or bins:
. Remove all lids and metal caps
. Empty contents and cle~ll1 all items thoroughly
. It's not necessarv to remove labels
. It's recommend~d (but not necessary) to crush cans
e and plastic bottles
6:1
,-
W.
~ ---,
,
Unacceptable
Unacceptable Glass:
. Ceramic Plates/Cups or Clay Flowerpots
· Crystal
· Light Bulbs
. Mirrors or Window Glass
. Pyrex and other he~\t-resistant O\'enware
· Drinking Glasses
IT nacceptable Metal:
. Scrap Metal from industrial processes
Unacceptable Plastic:
. Shrink Wr~\p or Plastic Strapping
. Wide-momh Plastic Tubs/Buckets
. Produce Baskets or Food Take-out Trays
Hazardous MJ.teri~\I:
. No containers from any h~1zardous materbls!
Livermore Dublin Disposal
Will Help You Establish
and Meet Recycling Objectives.
Call Customer Service
at 447-1300.
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......... -...
LIVERMORE DUBLIN DISPOSAL. A WASTE MANAGEMENT COMPANY
:e.
* Primed \\ith sol' h"",d ink on r<cl'eled paper
Ill) 1/99 , 1.00{) I
ANYTHING THAT TEARS RECYCLING
What goes in this cart or bin?
.
Acceptable
· Computer/Copy/bx/Typing paper
· Manila Envelopes (pressure sensitive OK)
.. Business Envelopes (,,"ith or without windows OK)
· Business Forms
· Carbon1css (NCR) Forms
· Sticky Notes
· Ledger/Scratch Paper
· Adding Machine Tape
· file folders
· Index/Address/Business Cards
· Junk Mail
· C;lossy Paper (e.g., presentation folders, brochures, flyers)
· Catalogs/Magazines/Telephone books
· N e\\"sp~lper
· Corrugared Cardboard (non-waxed only; boxes must
be flattened)
· Paperbo~lrd (e.g., shoe boxes, office supply boxes,
tablet bJckings)
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......-..--- -.
Unacceptable
· Blueprints
· Candy/Gum Wrappers
· Carbon Paper
· CofTee Cups (Paper and Sryrof()<lll1)
· Facial Tissue
· Foil-containing Papers (alcohol wipes and direct
mail samples)
· O\'erhead Transparencies
· O\"Cfnight Mailing/Padded Envelopes
· Paper Towels Jnd Napkins
· PhOtogr~lphy and Photographic Paper
· Rubber Bands
· Self-adhesive Labels
· "Vax Paper
· Plastics of any kind including rake-out f()Oli tL1YS, bags,
wrap, str~lpping, film cups or Styrofc.JaIl1 p~lCking
· Met~ll objects such as ems, nails, \\.ire, hangers or
case Str~lppUlg .
· Garbage of any kind
Livermore Dublin Disposal
Will Help You Establish
And Meet Recycling Objectives.
Call Customer Service
at 447-1300.
LIVERMORE DUBLIN DISPOSAL. A WASTE MANAGEMENT COMPANY
* Printed "ith soy bas<.d ink on r"",led ~
BD l/'N I ;.-
PLEASE FAX BACK
Existing LDD Recycling Customers: Please complete this survey and fax it back to us. \Ve will
be happy to review your current service( s) and suggest \\'ays we can help you get the most out
of your recycling programs.
New LDD Recycling Customers: Please complete this slllTey and tax it back to us. We'll show
you how recycling can be cost-effective and emironmentally responsible fiJr your organization.
FAX to LDD Customer Service: 925-447-7144
RECYCLING SURVEY - PLEASE FAX!
Circle items that apply to waste your organization generates:
Estimate % of total waste
from each category
Plaatlc. Aluminum, Metal, Ola88 10%
Corrugeted Cardboard 10%
,,,
l< ~,
"&1"
EXAMPLE
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,. ,.
....
Computer/Copy/Fax/T~1)ing Paper · Manila Envelopes
Business Envelopes · Business Forms · Sticky Notes
Carbonkss (NCR) t:orms · Ledger/Scratch Paper
Adding Machine Tape · hie t:olders · Junk Mail
StiCh:' Notes · Glossy Paper (e.g., presentation t()lders,
brochures, flyers) · Catalogs/Magazines/
Telephone Books · Newspaper
Paperboard (e.g., shoe boxes, office supply boxes, JO 20 ,,0 40 SO 00 70 ~o 90 JOO
tablet backings)...................................................................D 0 0 0 0 0 0 0 0 0
]() 20 ,,0 40 :;0 00 70 SO 90 JOO
Corrugated Cardboard - Non-waxed......................................O 0 0 0 0 0 DODD
JO 20 ,,0 40 so 00 70 SO 90 JOO
Plastic Bottks · Aluminum and/or Tin (Steel) Cans............. 0000000000
Glass Borrks/Jars
)0 20 .30 40 so nO 70 SO 90 100
Non-recyclable Trash..............................................................D 0 0 0 0 0 0 0 0 0
-
40%
Non-Recyclable Trash 40%
4"'-
~ 1!.
.11'"
...~
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'lJ::lCF
Questions/Comments:
Contact Person
Telephone
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* Printed with soy based ink on rc(rded r.lp"
HP 1/99, 1.(00)
--...
Lin'I"lllOrl' Duhlin Dii<p""al
A \\:-a:-1/-:' 'Ialla~+"nlt'llt COTllpallY
UP WITH RECYCLING
URGENT EARTH ApPEAL TO DUBLIN BUSINESSES .
It's Saving Businesses Money
in Disposal Expenses
In most cases, a Recycling Program will reduce your
trash disposal expense. In all cases, recycling will help
sa\'e your environment and overcrowded landfills"
Please call LDD Customer Ser\~ce at 447-1300 \\ith
any commercial recycling questions. As a Waste
Management Company, LDD is building its business
on the timeless values of trust, service and commit-
ment. We're here to help!
It's Everybody's Business
The combined recycling efforts of Dublin businesses
can make a world of difference. Recycling is a direct
\\.ay that every employee can contribute to environ-
mental preserntion. To discourage the dumping of
recyclable material, Calit()[1ua enacted the integrated
Solid Waste Management Act ten years ago. Time is
ruruung out on rIus legislation that requires every
city in Calif()[1ua to reduce solid waste in our land-
fills 50% by the year 2000. If we don't achieve this
goal, the State is empowered to impose a $10,000
per day tine. With your help, these solid waste
reduction goals can be accomplished. Call
Lh-crmore Dublin Disposal (LDD) at 447-1300.
We will help you improyc your existing program
or start a nnv recycling campaign.
It's Now or Sooner
It's Easy and Cost Effective
LDD prO\ides two simple Recycling Programs f()[.
Dublin businesses:
1 Anything That Tears Service: you can recycle
the majority of office paper, boxes and newspaper
generated in your business. You may purchase
six-gallon desk-side baskets f()r inside collection
COl1\'eluence. Outsidl.: bins arc a\',lilabk in \'arious
sizes, depending upon the 101)e of nutelial ,lild
\.olume your business generates.
.
2
Mixed Container Service: f()r the majority
of f()()d, ,\ine & liquor bortles, aluminum &
metal (steel) cans and PETE 1 or HDPE 2 plastic
bottles. A 96-gallon inside/outside cart plus
\"arious sizes of outside collection bins are
available, depending upon your mixed container
recycling volume.
If you are not participating in Dublin's Commercial Recycling Program, it's time to start. Organizations with
successful recycling programs report improved employee morale and enthusiasm for recycling. And the results
are measurable as we see the percentage of solid \\"aste diverted from landtllls.
How Do We Get Started?
To enluate your recycling potential, please turn the page and take a few
minutes to fill out the fax-back surve\'. We've divided vour waste into
. .
fc.Hlr categories. Adding up your overall waste as 100%, please estimate
the percentage of waste your organization produces in each category.
survey
on back.
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UVERMORE DUBUN DISPOSAL. A WASTE MANAGEMENT COMPANY
-..-. _NT
ATTACHMENT 2
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Comparison of Commercial Garbage Rates
and Commercial Recycling Rates
Potential Savings Through Participation in Expanded Commercial Recycling Program:
Commercial Garbage Rates
Size # # Times Base
YARDS Per Week Monthly Rate
1 1 $ 33.15
2 1 $ 66.30
3 3 $ 314.95
4 3 $ 414.40
7 3 $ 712.75
Proposed HAnything That Tears" Rates
Size # # Times Base
YARDS Per Week Monthly Rate
1 1 $ 25.00
2 1 $ 48.00
3 3 $ 208.00
4 3 $ 274.00
7 3 $ 445.00
Hypothetically, iftwo different companies, one a small waste generator, and one a large generator,
participated in the "Anything That Tears" program, and reduced their waste stream as a result, their rates
would be reduced as follows:
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COMP ANY 1: Currently uses a 2-yard garbage bin that is picked up once per week;
Does not participate in recycling program
Current Rate
$66.30 per month
Participates in program, and changes to a I-yard garbage bin,
and a I-yard recycling bin, both picked up once per week
New Rate
$58.15 per month
COMPANY 2: Currently uses a 7-yard bin that is picked up 3 times per week;
Does not participate in recycling program
Current Rate
$712.75 per month
Participates in program, and changes to a 4-yard garbage bin,
3 times per week, and a 3-yard recycling bin, 3 times per week
New Rate
$622.40 per month
~ompanies can save even more by educating their employees to "reuse" as well as recycle, thereby reducing
"their entire garbage and recycling service.
STANDARD CONTRACTUAL SERVICES AGREEMENT ATTACHMENT 3
THIS AGREEMENT is made at Dublin, California, for a 16-month period, from March 1, 1999, to June
30, 2000, by and between the CITY OF DUBLIN, a municipal corporation ("CITY"), and Waste Management
of Alameda County, doing business as Livermore Dublin Disposal ("CONTRACTOR"), who agree as follows: .
1. SERVICES. Subject to the terms and conditions set forth in this Agreement, CONTRACTOR
shall provide to CITY the services described in Exhibit A. CONTRACTOR shall provide said services at the
time, place and in the manner specified in Exhibit A.
2. PAYMENT. CITY shall pay CONTRACTOR for services rendered pursuant to this Agreement
at the time and in the manner set forth in Exhibit B. The payments specified in Exhibit B shall be the only
payments to be made to CONTRACTOR for services rendered pursuant to this Agreement. CONTRACTOR
shall submit all billings for said services to CITY in the manner specified in Exhibit B; or, ifno manner be
specified in Exhibit B, then according to the usual and customary procedures and practices which
CONTRACTOR uses for billing clients similar to CITY.
3. FACILITIES AND EQUIPMENT. CONTRACTOR shall, at its sole cost and expense, furnish
all facilities and equipment which may be required for furnishing services pursuant to this Agreement.
4. GENERAL PROVISIONS. The general provisions set forth in Exhibit C are part ofthis
Agreement. In the event of any inconsistency between said general provisions and any other terms or
conditions of this Agreement, the other term or condition shall control insofar as it is inconsistent with the
general provisions.
5. EXHIBITS. All exhibits referred to herein are attached hereto and are by this reference
incorporated herein.
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6. CONTRACT ADMINISTRATION. This Agreement shall be administered by Richard C.
Ambrose ("ADMINISTRATOR"). All correspondence shall be directed to or through the ADMINISTRATOR
or his or her designee.
7. NOTICES. Any written notice to CONTRACTOR shall be sent to:
Annette Borges. District Manager
Livermore Dublin Disposal
6175 South Front Road
Livermore. CA 94550
Any written notice to CITY shall be sent to:
Sue Barnes. Management Assistant
City of Dublin
P. O. Box 2340
Dublin. CA 94568
Executed as of the day first above stated:
Attest:
CITY OF DUBLIN
a municipal corporation
City Clerk
By
.
"CITY"
Approved as to form:
By
City Attorney
"CONTRACTOR"
EXHIBIT A
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SCOPE OF SERVICES
CONTRACTOR will develop and implement an expanded commercial program, which will be available to all
commercial accounts within the City of Dublin. The program consists oftwo components:
1. "Anything That Tears," which includes envelopes, sticky notes, file folders, junk mail, glossy paper,
catalogs, cardboard, newspaper, and paperboard
2. "Mixed Container," which includes glass bottles, plastic bottles, and cans
CONTRACTOR may establish collection rates for commercial recycling under the expanded program, with the
intent to increase participation by commercial businesses in the City of Dublin.
CONTRACTOR will aggressively market the new program. CONTRACTOR will hire an inside sales person to
make initial contacts with all commercial accounts in the City of Dublin. This person will send direct mailings
to all ofthe commercial accounts, and will follow up with telephone calls. Businesses can then meet with
Waste Management's recycling coordinator, who will assess their waste stream and show them how they can
save money by participating in the recycling program.
CONTRACTOR will also contact Dublin School District staff regarding the expanded program, and will work
with District liaisons to implement school program within the parameters of the expanded program.
.ONTRACTOR will implement the new program by March 15,1999. CONTRACTOR will contact each of
the 549 commercial customers in Dublin within 4-5 months. CONTRACTOR will attempt to enroll 40% of the
commercial accounts in Dublin by December 30, 1999.
CONTRACTOR will provide CITY with written reports on marketing activity and business participation rates
three times during the initial l6-month period:
I. May 30, 1999
2. November 30, 1999
3. May 30, 2000
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Exhibit A
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EXHIBIT B
PAYMENT SCHEDULE
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CITY shall pay CONTRACTOR an amount not to exceed the total sum of thirty four thousand, five hundred
eleven dollars ($34,511) for services to be performed pursuant to this Agreement. CONTRACTOR shall submit
invoices during the term ofthis Agreement based on the cost for services performed in accordance with the
following schedule:
$8,628 on June 30, 1999, after CITY receives first Progress Report from CONTRACTOR
$12,942 on December 30,1999, after CITY receives second Progress Report from CONTRACTOR
$12,941 on June 30, 2000, after CITY receives third Progress Report from CONTRACTOR
Invoices will be paid by the CITY within 30 days of receipt from the CONTRACTOR.
The total sum stated above shall be the total which CITY shall pay for the services to be rendered by
CONTRA.CTOR pursuant to this Agreement. CITY shall not pay any additional sum for any expense or cost
whatsoever incurred by CONTRACTOR in rendering services pursuant to this Agreement.
The services to be provided under this Agreement may be terminated without cause at any point in time
in the sole and exclusive discretion of CITY. In this event, CITY shall compensate the CONTRACTOR for all
outstanding costs incurred as of the date of written notice thereof and shall terminate this Agreement. .
CONTRACTOR shall maintain adequate logs, records and timesheets in order to verify costs incurred to date.
Exhibit B
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EXHIBIT C
GENERAL PROVISIONS
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1. INDEPENDENT CONTRACTOR. At all times during the term ofthisAgreement,
CONTRACTOR shall be an independent contractor and shall not be an employee of CITY. CITY shall have
the right to control CONTRACTOR only insofar as the results of CONTRACTOR'S services rendered pursuant
to this Agreement; however, CITY shall not have the right to control the means by which CONTRACTOR
accomplishes services rendered pursuant to this Agreement.
2. LICENSES; PERMITS; ETC. CONTRACTOR represents and warrants to CITY that he has all
licenses, permits, qualifications and approvals of whatsoever nature which are legally required for
CONTRACTOR to practice his profession. CONTRACTOR represents and warrants to CITY that
CONTRACTOR shall, at his sole cost and expense, keep in effect at all times during the term of this Agreement
any licenses, permits, and approvals which are legally required for CONTRACTOR to practice his profession.
3. TIME. CONTRACTOR shall devote such time to the performance of services pursuant to this
Agreement as may be reasonably necessary for satisfactory performance of CONTRACTOR'S obligations
pursuant to this Agreement.
4. INSURANCE REOUIREMENTS. CONTRACTOR shall procure and maintain for the duration
of the contract insurance against claims for injuries to persons or damages to property which may arise from or
in connection with the performance of the work hereunder by the CONTRACTOR, his agents, representatives,
employees or subcontractors. The cost of such insurance shall be included in the CONTRACTOR'S proposal.
. (a) Minimum Scope ofInsurance. Coverage shall be at least as broad as:
1. Insurance Services Office form number GL 0002 (Ed. 1/73) covering comprehensive
General Liability and Insurance Services Office form number GL 0404 covering Broad Form Comprehensive
General Liability; or Insurance Services Office Commercial General Liability coverage ("occurrence" form CG
0001.)
2. Insurance Services Office form number CA 0001 (Ed. 1/78) covering Automobile
Liability, code 1 "any auto" and endorsement CA 0025.
3. Workers' Compensation Insurance as required by the Labor Code of the State of
California and Employers Liability Insurance.
(b) Minimum Limits of Insurance. CONTRACTOR shall maintain limits no less than:
1. General Liability: $1,000,000 combined single limit per occurrence for bodily injury,
personal injury and property damage. If commercial General Liability Insurance or other form with a general
aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the
general aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: $1,000,000 combined single limit per accident for bodily injury
and property damage.
3. Workers' Compensation and Employers Liability: Workers' Compensation limits as
required by the Labor Code of the State of California and Employers Liability limits of $1 ,000,000 per accident.
.Xhibit c
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(c) Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be
declared to and approved by the CITY. At the option of the CITY, either the insurer shall reduce or eliminate
such deductibles or self-insured retentions as respects the CITY, its officers, officials and employees; or the
CONTRACTOR shall procure a bond guaranteeing payment of losses and related investigations, claim .
administration and defense expenses.
(d) Other Insurance Provisions. The policies are to contain, or be endorsed to contain, the following
provIsIOns:
1. General Liability and Automobile Liability Coverages.
a. The. CITY, its officers, officials, employees and volunteers are to be covered as
insureds as respects: liability arising out of activities performed by or on behalf of the CONTRACTOR;
products and completed operations of the CONTRACTOR, premises owned, occupied or used by the
CONTRACTOR, or automobiles owned, leased, hired or borrowed by the CONTRACTOR. The coverage shall
contain no special limitations on the scope of the protection afforded to the CITY, its officers, officials,
employees or volunteers.
b. The CONTRACTOR'S insurance coverage shall be primary insurance as respects
the CITY, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the
CITY, its officers, officials, employees or volunteers shall be excess of the CONTRACTOR'S insurance and
shall not contribute with it.
c. Any failure to comply with reporting provisions of the policies shall not affect
coverage provided to the CITY, its officers, officials, employees or volunteers.
d. The CONTRACTOR'S insurance shall apply separately to each insured against
whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.
2. Workers' Compensation and Employers Liability Coverage.
The insurer shall agree to waive all rights of subrogation against the CITY, its officers, .
officials, employees and volunteers for losses arising from work performed by the CONTRACTOR for the
CITY.
3. Professional Liability.
CONTRACTOR shall carry professional liability insurance in an amount deemed by the
CITY to adequately protect the CONTRACTOR against liability caused by negligent acts, errors or omissions
on the part of the CONTRACTOR in the course of performance of the services specified in this Agreement.
4. All Coverages.
Each insurance policy required by this clause shall be endorsed to state that coverage
shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30)
days' prior written notice by certified mail, return receipt requested, has been given to the CITY.
(e) Acceptability of Insurers. Insurance is to be placed with insurers with a Bests' rating of no less
than A:VII.
(f) Verification of Coverage. CONTRACTOR shall furnish CITY with certificates of insurance and
with original endorsements effecting coverage required by this clause. The certificates and endorsements for
each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The
certificates and endorsements are to be received and approved by the CITY before work commences. The CITY
reserves the right to require complete, certified copies of all required insurance policies, at any time.
(g) Subcontractors. CONTRACTOR shall include all subcontractors as insureds under its policies or
shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors .
shall be subject to all of the requirements stated herein.
Exhibit C
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1/19/99
(h) The Risk Manager of CITY may approve a variation in those insurance requirements upon a
determination that the coverages, scope, limits and forms of such insurance are either not commercially
available or that the CITY's interests are otherwise fully protected.
.5. CONTRACTOR NO AGENT. Except as CITY may specify in writing, CONTRACTOR shall have no
authority, express or implied, to act on behalf of CITY in any capacity whatsoever as an agent. CONTRACTOR
shall have no authority, express or implied, pursuant to this Agreement to bind CITY to any obligation whatsoever.
6. ASSIGNMENT PROHIBITED. No party to this Agreement may assign any right or obligation pursuant
to this Agreement. Any attempted or purported assignment of any right or obligation pursuant to this
Agreement shall be void and of no effect. The CITY will allow CONTRACTOR to assign this agreement to
another affiliate of subsidiary of contractor, with prior written consent of the City and provided that such
consent shall not be unreasonably withheld.
7. PERSONNEL. CONTRACTOR shall assign only competent personnel to perform services pursuant to
this Agreement. In the event that CITY, in its sole discretion, at any time during the term of this Agreement,
desires the removal of any such persons, CONTRACTOR shall, immediately upon receiving notice from CITY
of such desire of CITY, cause the removal of such person or persons.
8. STANDARD OF PERFORMANCE. CONTRACTOR shall perform all services required pursuant to
this Agreement in the manner and according to the standards observed by a competent practitioner of the
profession in which CONTRACTOR is engaged in the geographical area in which CONTRACTOR practices
his profession. All instruments of service of whatsoever nature which CONTRACTOR delivers to CITY
pursuant to this Agreement shall be prepared in a substantial, first class and workmanlike manner and conform
to the standards of quality normally observed by a person practicing in CONTRACTOR's profession.
.. HOLD HARMLESS AND RESPONSIBILITY OF CONTRACTORS. CONTRACTOR shall take all
responsibility for the work, shall bear all losses and damages directly or indirectly resulting to him, to any
subcontractor, to the CITY, to CITY officers and employees, or to parties designated by the CITY, on account
of the performance or character of the work, unforeseen difficulties, accidents, occurrences or other causes
predicated on active or passive negligence of the CONTRACTOR or any subcontractor. CONTRACTOR shall
indemnify, defend and hold harmless the CITY, its officers, officials, directors, employees and agents from and
against any or all loss, liability, expense, claim, costs (including costs of defense), suits, and damages of every
kind, nature and description directly or indirectly arising from the performance of the work. This paragraph
shall not be construed to exempt the CITY, its employees and officers from its own fraud, willful injury or
violation oflaw whether willful or negligent. For purposes of Section 2782 of the Civil Code the parties hereto
recognize and agree that this agreement is not a construction contract. By execution of this agreement
CONTRACTOR acknowledges and agrees that he has read and understands the provisions hereof and that this
paragraph is a material element of consideration.
Approval of the insurance contracts does not relieve the CONTRACTOR or subcontractors from
liability under this paragraph.
10. GOVERNMENTAL REGULATIONS. To the extent that this Agreement may be funded by fiscal
assistance from another governmental entity, CONTRACTOR shall comply with all applicable rules and
regulations to which CITY is bound by the terms of such fiscal assistance program.
11. DOCUMENTS. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda or
.ther written documents or materials prepared by CONTRACTOR pursuant to this Agreement shall become the
roperty of CITY upon completion of the work to be performed hereunder or upon termination of the Agreement.
Exhibit C
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