SR - RES-10998 - SOLID WASTE FRANCHISE AGREEMENT EXTENSION FEBRUARY 1 2018 THROUGH JANUARY 31 2020Resolution No. 10998 - A Resolution of the City Council approving a two -year extension of the
Solid Waste Franchise Agreement between the City of Orange and CR &R Environmental
Services.
2. SUMMARY
On July 14, 2009, the City entered into a Solid Waste Franchise Agreement (Agreement) with
CR &R Environmental Services (CR &R). The terms of the Agreement provide CR &R with an
automatic two -year extension if they meet certain solid waste diversion thresholds. CR &R has
consistently exceeded the thresholds and is eligible to have the Agreement extended for two
years.
3. RECOMMENDED ACTION
Approve Resolution No. 10998 to extend the existing Agreement between the City and CR &R
from February 1, 2018, until January 31, 2020.
4. FISCAL IMPACT
None.
5. STRATEGIC PLAN GOAL(S)
2. Be a fiscally healthy community —
d. Analyze future fiscal needs and potential revenue opportunities.
4. Provide outstanding public service —
b. Provide facilities and services to meet customer expectations.
6. GENERAL PLAN IMPLEMENTATION
Solid Waste Element Goal 2.0 Reduce the amount of waste material entering regional landfills
with an efficient and innovative waste management program.
Policy 2.1: Provide sufficient levels of solid waste service throughout the community.
Policy 2.2: Expand outreach and education regarding recycling opportunities to all city
customers.
Policy 2.3 Develop programs that encourage residents to donate or recycle surplus furniture, old
electronics, clothing, and other household items rather than disposing of such
materials in landfills.
Policy 2.4 Expand outreach and education to all city customers regarding residential collection
of household hazardous wastes including paint containers, electronics, household
chemicals, motor oils and pesticides.
17. DISCUSSION and BACKGROUND I
On July 14, 2009, the City entered into an Integrated Solid Waste Services Agreement
(Agreement) with CR &R. Although the Agreement is set to expire on January 31, 2018, there is
a performance stipulation in the Agreement that with Council approval, CR &R may receive an
automatic two -year extension for achieving 40% solid waste diversion.
Over the last six years, CR &R has exceeded their 40% diversion threshold and is now requesting
the Council consider their request for a two -year extension of the Agreement. As part of the
process associated with the verification of CR &R contractual compliance, the City utilized the
services of MSW Consultants (MSW).
As part of the conditions of the City's Agreement with CR &R, MSW conducted an extensive
performance audit of CR &R. Under the terms of the Agreement, CR &R is required to meet
certain performance criteria. Listed below is a summary of the audit objectives and MSW's
findings:
ITEM 2 9/12/17
Printed on Recycled Paper
Audit Objective
CR &R
Compliance
1.
Ensure that CR &R has accurately billed all customers, and verify on a sample
basis the number and size of customer bins.
2.
Ensure that CR &R has diverted a minimum of 40% of solid waste.
3.
Ensure that CR &R has delivered all mixed construction and demolition (C &D)
debris loads to a designated C &D facility for processing, and diverted a
minimum of 70% of all C &D debris.
4.
Ensure that CR &R has delivered all solid waste to approved facilities.
5.
Ensure that CR &R has processed sufficient mixed waste to divert 8,631 tons
annually.
6.
Ensure that CR &R has diverted green waste such that the City receives
maximum diversion credit, and delivered all green waste for processing in
accordance with the prescribed hierarchy of recycling methods.
Although there were numerous criteria involved with CR &R's performance audit conducted by
MSW, the primary objective involved the assurance that CR &R maintained a solid waste
diversion rate that exceeded 40 %. Over the last five years, CR &R has exceeded their required
40% diversion threshold. Detailed below is a comparative summary of CR &R's five -year solid
waste diversion performance:
Year
2012 2014 _J 2015 2016
Contracted Diversion Requirement 40.00% 40.00% 140.00% 140.00% 40.00%
CR &R Diversion Performance 40.17% 41.14% 140.62% 141.98% 40.99 %
Subject to Council approval, the expiration of the Agreement will be extended from February 1,
2018 to January 31, 2020. If CR &R's two -year Agreement extension request is approved, the
Council has the sole discretion to extend the agreement one final time for two years from
February 1, 2020 to January 31, 2022 on a month to month basis. During this timeframe, the
Council could renegotiate the CR &R Agreement or direct staff to issue a Request for Proposal for
City solid waste collection beyond January 31, 2022.
18. ATTACHMENTS I
• CR &R Agreement Extension Request
• Resolution No. 10998
• MSW Consultants Audit (Available for review in the Public Works Department)
RESOLUTION NO. 10998
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ORANGE APPROVING A TWO -
YEAR EXTENSION OF THE SOLID WASTE
FRANCHISE AGREEMENT WITH CR &R
INCORPORATED.
WHEREAS, pursuant to the provisions of Public Resources Code Section 40059(a)(1),
the City of Orange is authorized to determine all aspects of solid waste handling which are of
local concern; and
WHEREAS, Public Resources Code Section 40059(a)(2) also authorizes the City to
determine whether solid waste handling services are to be provided by exclusive or non-
exclusive contract and whether the contract will be awarded or extended with or without
competitive bidding; and
WHEREAS, pursuant to Public Resources Code 40059(a)(2), the City may grant the
authority to provide solid waste handling services under terms and conditions prescribe by it by
resolution; and
WHEREAS, on July 14, 2009, the City entered into an exclusive multi -year Integrated
Solid Waste Management Services Franchise Agreement with CR &R Incorporated; and
WHEREAS, language in the Agreement stipulated that after eight years, if CR &R
consistently met specified solid waste diversion thresholds, CR &R could request a two -year
extension of the Agreement from the City; and
WHEREAS, on August 16, 2016, after achieving the Franchise Agreement's specified
solid waste diversion thresholds, CR &R formally requested a two -year extension of the
Franchise Agreement with the City; and
WHEREAS, in order acquire additional assurance of CR &R's compliance with the
terms of the of the Agreement, the City retained the services of MSW Consultants to conduct an
extensive performance audit of CR &R; and
WHEREAS, the findings of the audit by MSW Consultants revealed that CR &R was in
compliance with the terms of their Agreement with the City.
CITY COUNCIL MINUTES SEPTEMBER 12, 2017.
5. REPORTS FROM COUNCILMEMBERS
Councilmember Alvarez requested that the Council direct the City Attorney to review any
existing City laws pertaining to panhandling, vagrancy, loitering, or anti- camping; and to
bring back a report with any necessary amendments and costs associated with revising
these ordinances.
6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS — None
7. ADMINISTRATIVE REPORTS
7.1 Approval of a two -year extension of the Solid Waste Franchise Agreement between
the City of Orange and CR &R Environmental Services. Resolution No. 10998.
(A2100.0; AGR- 5444.1)
Administrative Manager Greg Warren provided a brief staff report, and clarified that
approval of the Resolution only approves an extension of the existing agreement with all
stipulations remaining the same.
MOTION — Murphy
SECOND — Alvarez
AYES — Alvarez, Whitaker, Smith, Murphy
ABSENT — Nichols
Moved to approve Resolution No. 10998 to extend the existing Agreement between the
City and CR &R from February 1, 2018, until January 31, 2020.
7.2 Approval of an agreement with Convergint Technologies for equipment and
installation of video surveillance systems. (A2100.0; AGR -6520)
Finance Director Will Kolbow provided a staff report and answered Council's questions
regarding the placement of cameras on specific buildings. Mr. Kolbow assured Council
that the Orange Police Department was involved with the design ensuring any areas of
concern will be monitored with the new surveillance system.
MOTION — Whitaker
SECOND — Murphy
AYES — Alvarez, Whitaker, Smith, Murphy
ABSENT — Nichols
Moved to: 1) Approve agreement with Convergint Technologies in the revised amount of
$805,988.78, and authorize the Mayor and City Clerk to execute the agreement on behalf
of the City; 2) Authorize the appropriation of $100,000 from Information Technology (790)
unreserved fund balance to account number 790.4011.56032.20264; and 3) Authorize the
appropriation of $37,000 from Library Development Impact Fees (573) unreserved fund
balance to account number 573.2004.56020.30057.
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