JUNE 21, 2005 RESCIND AWARD OF THREE NON-EXCLUSIVE COMMERCIAL REFUSE COLLECTION AND DISPOSAL SERVICES ANNUAL AGREEMENTS FOR 2005 JUNE 21, 2005 RESCIND AWARD OF THREE NON-EXCLUSIVE COMMERCIAL REFUSE COLLECTION AND DISPOSAL SERVICES ANNUAL AGREEMENTS FOR 2005



TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: DIRECTOR OF PUBLIC WORKS

DATE: JUNE 21, 2005

SUBJECT: RESCIND AWARD OF THREE NON-EXCLUSIVE COMMERCIAL REFUSE COLLECTION AND DISPOSAL SERVICES ANNUAL AGREEMENTS FOR 2005

Staff Coordinator: Lauren Ramezani, Sr. Administrative Analyst

RECOMMENDATION

Rescind approval of non-exclusive commercial refuse collection and disposal services agreements that were awarded for the year 2005 to: Avel Roll Off, Art's Special Waste, Inc. and Ace Roll Off Rubbish Service, Inc.

BACKGROUND

Since 1992 the City has entered into one-year non-exclusive franchises for Commercial Refuse Collection and Disposal with any firm that meets the agreement requirements.

Staff contacts existing authorized haulers before the end of each year to inquire about renewal for the following year, while new haulers can be added at any time during the year. All haulers are required to sign an annual agreement, annually obtain a City business license, submit proof of general liability and workers’ compensation insurance, and submit payments on a quarterly basis along with quarterly reports, which provide refuse disposal and recycling information.

In December 2000, a five-year notice of non-extension was issued to all of the City's authorized non-exclusive commercial haulers. This notice allows the City Council, after December of 2005, to decide to either: continue the City's current non-exclusive (unlimited) franchise agreements with the commercial haulers; or change to an exclusive (limited) franchise agreement with one or more commercial haulers.

Some of the benefits of reducing the number of haulers are more accurate disposal reporting, monitoring and implementation of recycling programs in the commercial/non-residential sector, in addition to reduced staff time administering various agreements.

DISCUSSION

Staff recommends that the City Council rescind its approval of the 2005 annual non-exclusive commercial hauling agreement with three haulers: Avel Roll Off (Avel), Art's Special Waste, Inc. (Art's) and Ace Roll Off Rubbish Service, Inc. (Ace).

Avel was awarded an agreement on April 19, 2005. However, since then Avel has not signed their agreement and has now requested a withdrawal of their agreement due to difficulty and high cost of obtaining the necessary $1,000,000 general liability insurance. Although Avel has obtained a business license, Avel told staff that they have not done any business in the City.

Art's Special Waste, Inc. (Art's) was awarded an agreement on March 1, 2005. Since then, Art's has not signed their agreement and has requested a withdrawal of their agreement due to lack of sufficient customers/business in our City. They have not obtained a business license and told staff that they have not done any business here.

Ace was awarded an agreement on December 21, 2004 for the year 2005. Ace has been an authorized hauler in the City for over seven years. Staff has contacted Ace numerous times (by phone, e-mail and letter) regarding returning a signed agreement, obtaining a 2005 business license and submitting required quarterly reports. Over the past two years, Ace was late returning signed agreements and obtaining business licenses, and every quarter was late in submitting their reports and fees. However, each quarter after several calls, e-mails and letters from staff, Ace would finally return signed annual agreements, obtain business licenses, and return the quarterly reports, and pay the quarterly fees with applicable penalties. However, this has not been the case this year.

This year, Ace initially told staff that the agreement, business license and reports would be submitted shortly. However, for the past two months, Ace has been non-responsive and has not returned any of staff's calls and messages, or submitted anything to the City. Staff reminded Ace that until needed documents were submitted, Ace could not perform any business in the City. However, staff suspects that Ace has possibly done business in the City in 2005.

FISCAL IMPACT

The City has received approximately $3,500 a year from Ace in franchise and AB 939 fees. Avel and Art's are new haulers and have not paid any quarterly fees to the City before. AB 939 fees are deposited in the Waste Reduction Fund and are used to develop and implement recycling programs to meet the AB 939 mandate. Franchise fees are deposited in the General Fund.

Respectfully Submitted:

Dean E. Allison, Director of Public Works

Reviewed by:

Les Evans, City Manager