HomeMy WebLinkAboutAgreement A-17-569-2 with Peña’s Disposal, Inc..pdf1
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AMENDMENT NO. 2 TO AMENDED AND SUCCESSOR EXCLUSIVE SERVICE AREA
PROGRAM AGREEMENT NO. 17-569 FOR SOLID WASTE, RECYCLABLE MATERIALS,
GREEN WASTE AND ORGANIC MATERIALS SERVICES
THIS AMENDMENT NO. 2 (hereinafter “Amendment No. 2”) TO AMENDED AND
SUCCESSOR EXCLUSIVE SERVICE AREA AGREEMENT NO. 17-569 is made and entered
into in Fresno, California, on this _____ day of _______________, 2019, between the County
of Fresno, a political subdivision of the State of California (hereinafter called “COUNTY”), and
Peña’s Disposal, Inc., a California corporation (hereinafter called “CONTRACTOR”), to
become effective as of January 1, 2020 (hereinafter the “Effective Date”), with reference to the
following facts.
WITNESSETH:
WHEREAS, the COUNTY and CONTRACTOR entered into an Exclusive Service Area
Program Agreement No. 17-569 dated October 31, 2017; and
WHEREAS, since shortly after the date of execution of Agreement No. 17-569,
CONTRACTOR has incurred significant increases in costs as a result of rapidly declining
recyclable commodity markets primarily attributable to strict regulations established under
China’s National Sword environmental policy; and
WHEREAS, the COUNTY and CONTRACTOR previously entered into AMENDMENT
NO. 1 (Agreement No. 17-569-1, hereinafter “Amendment No. 1”) to the Agreement, which
established a recycling surcharge of 1.45 percent to be applied as an overlay charge to the
maximum collection rates to provide temporary mitigation of such increased costs for the
period from January 1, 2019 to June 30, 2020; and
WHEREAS, as contemplated by Amendment No. 1, COUNTY and CONTRACTOR
have since worked together to create a successor recycling surcharge methodology, intended
to address in a more accurate and responsive manner the positive and negative fluctuations in
the market value of recyclables collected within the Exclusive Service Area Program territories,
over a more extended period of time; and
19-1041 Agreement No. 17-569-2
22nd October
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WHEREAS, Article I of this Amendment No. 2 is intended to provide that
successor methodology and accordingly will serve to supersede Amendment No. 1 in its
entirety, from and after the Effective Date of this Amendment No. 2; and
WHEREAS, COUNTY is tasked with complying with mandatory organics recycling
regulations established by the California Department of Resources Recycling and Recovery
(“CalRecycle”) pursuant to applicable statutory provisions enacted by the Legislature, including
but not limited to SB 1383 (Stats. 2016, c. 395) and AB 1826 (Stats. 2014, c. 727), and
WHEREAS, Article II of this Amendment No. 2 serves to establish maximum rates that
CONTRACTOR may charge to provide the Organics Materials Collection services that are
mandated in order to meet compliance with the statutory and regulatory requirements
referenced above, and
WHEREAS, Article II of this Amendment No. 2 also serves to establish additional
Special Service Rates to mitigate the factors of container overfilling and organics and recycling
contamination, which are primary consumer behaviors that also have contributed to increased
costs and market decline, and
NOW, THEREFORE, in consideration of the foregoing premises and the mutual
promises herein, COUNTY and CONTRACTOR agree as follows:
Article I: Recycling Surcharge Development and Implementation Process
A. From and after the Effective Date hereof (January 1, 2020), the provisions of
Amendment No. 1 shall have no further force or effect, and Amendment No. 1 shall be and is
hereby superseded in its entirety by the provisions of Article I of this Amendment No. 2.
B. The new Recycling Surcharge methodology is outlined in Exhibit L to the
Agreement (which exhibit is attached to this Amendment No. 2), as hereby amended.
COUNTY will calculate the Recycling Surcharge on a quarterly basis using data submitted by
the CONTRACTOR to the COUNTY pursuant to Sections 6.3 and 8.2 of Agreement 17-569
and Market Index data. The Recycling Surcharge shall be applicable to the maximum
allowable Rates for base collection services in accordance with the revised Exhibits D and D-1
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to the Agreement (which exhibits are attached to this Amendment No. 2), as hereby amended.
C. It is expressly understood and agreed between the parties that under no
circumstance shall the percentage rate of the Recycling Surcharge ever exceed five percent
(5%) of the maximum Rate the CONTRACTOR is permitted to charge for base collection
services.
D. CONTRACTOR shall give notice to its Customers prior to the initial
implementation of the new Recycling Surcharge methodology in accordance with the
introductory paragraph of Section 7.3 (which immediately precedes Section 7.3, Paragraph A)
of the Agreement. COUNTY will provide the form of the standardized Customer notice to be
used by CONTRACTOR, which shall briefly summarize the methodology and specify the
percentage rate of the surcharge resulting from the initial implementation of that methodology.
The notice additionally shall explain that:
(1) the rate of the surcharge will fluctuate thereafter, depending upon recycling market
conditions, and accordingly shall be recalculated by the COUNTY on a quarterly
basis; and
(2) under no circumstances will the percentage rate of the recycling surcharge ever
exceed five percent (5%) of the maximum Rate the Contractor may charge for base
collection services.
E. COUNTY will notify the CONTRACTOR, in writing, of the maximum allowable
rate of the initial implementation of the Recycling Surcharge and the effective start and end
date of the Recycling Surcharge for that first quarterly period, as outlined in Exhibit L to the
Agreement, as hereby amended. For all subsequent quarters, written communication as
hereby described will be provided by COUNTY to CONTRACTOR not less than 15 days prior
to the effective date of the recalculated rate of the quarterly Recycling Surcharge.
F. During the period from January 1, 2020 to June 30, 2025, CONTRACTOR may
charge for services under the Agreement, as hereby amended, in accordance with the
Maximum Rate Schedules listed in the revised Exhibits D and D-1 to the Agreement, as
hereby amended (subject to the annual update on each July 1 in accordance with the CPI
adjustment pursuant to Section 7.2, Paragraph C thereof), together with the addition of the
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quarterly Recycling Surcharge. The Recycling Surcharge as detailed in Exhibit L of the
Agreement, as hereby amended, is intended to reflect the current condition of the recycling
market. COUNTY and CONTRACTOR agree to continue to work together on an ongoing
basis, from and after the date of execution of this Amendment No. 2, to monitor and respond to
any further extreme changes in recycling market conditions in a manner that is fair to both to
CONTRACTOR and its Customers, by developing such further modifications to the Recycling
Surcharge process as may be deemed appropriate. Any such subsequently recommended
updates or changes to the Recycling Surcharge process shall be presented to the COUNTY’s
Board of Supervisors sometime prior to June 30, 2025, as a proposed amendment to
Agreement No. 17-569 to modify or supersede the provisions of this Amendment No. 2.
Article II. Modified Provisions Governing Organics Collection
A. Section 4.2., Paragraph E, located on page 34, line 4 through page 35, line 15 of
Agreement 17-569 is hereby deleted in its entirety and replaced with the following:
“E. Organic Materials Collection, Transfer and Processing
Unless formally exempted from the requirement, CONTRACTOR shall, commencing
with the effective date of this Amendment No. 2, make available to its Customers the collection
and processing of Organic Materials in accordance with Applicable Law, including Mandatory
Organics Recycling regulations promulgated by CalRecycle pursuant to AB1826 and/or SB
1383, inclusive of Green Waste. It currently is anticipated by the parties that, during the life of
the Agreement, CalRecycle almost certainly will expand such Organics recycling regulations to
extend their applicability to all generators of Organic Materials (i.e., including Residential
Customers in addition to Commercial Customers), and perhaps to include additional
requirements as well.
Within no more than twelve (12) months after the Operative Date, CONTRACTOR shall
submit to the COUNTY Representative its implementation plan for the provision of organics
collection services for commercial, multi-family and single-family residential customers. That
implementation plan shall include the following elements:
1. Anticipated date of commencement and appropriately particularized overview of
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estimated timeframe for implementation of Organic Materials Collection services for each of
the following: commercial, multi-family, and residential Customers.
2. Details of Organic Materials Collection services offered, inclusive of:
a) How CONTRACTOR will support compliance with AB1826 and SB1383
b) Collection containers and collection vehicles to be used
c) Education and outreach activities
d) Material transfer, handling, and processing activities
e) Future program enhancements
f) CONTRACTOR’s Proposed Rates (for Green Waste and full Organic
Materials, including food waste), itemized to include identification of the amount(s) of the
transportation and/or transfer components thereof
The rate for CONTRACTOR to provide Organic Materials Collection Services shall be
calculated at 60% of the maximum rates as outlined in the revised Exhibits D and D-1 of the
Agreement, as hereby amended, for Solid Waste Collection of comparable size and frequency,
plus the actual cost per ton, proportional to the size of container and frequency of collection,
for processing, inclusive of costs for any transportation or transfer of sa id Organic Materials.
The Organic Materials Collection rates also will be adjusted at 65% of CPI for bins and 75% of
CPI for carts based on fixed versus variable costs in accordance with Section 7.2.C of
Agreement 17-569. Any such adjustment to those rates must be approved by the COUNTY
Board of Supervisors as part of the Annual CPI adjustment, which then would become
effective on the following July 1. The Organic Materials Collection rates may subsequently be
adjusted, upon request for a rate review from CONTRACTOR to the COUNTY, following the
procedure detailed in Section 7.2.B of Agreement 17-569 or as otherwise may be mutually
agreed upon in writing by the COUNTY Representative and CONTRACTOR. A request for a
review to consider adjustment of these rates may be initiated at any time during the year, but
will be limited to no more than one adjustment per calendar year. While this review arguably
could include both known and anticipated changes in processing costs, it is acknowledged by
the parties that it would be inherently more difficult for the CONTRACTOR to meet its burden
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to justify any such requested increase, as required under Section 7.3, Paragraph C of the
Agreement, with regard to a cost increase (or component thereof) that was merely anticipated
as compared with one that CONTRACTOR already had experienced.”
B. Following the issuance and approval of final regulations by CalRecycle governing
organics recycling and collection as required by SB 1383, CONTRACTOR shall submit to
COUNTY, within 90 days of COUNTY’s request, CONTRACTOR’s revised and updated
Organics Implementation Plan that addresses said final regulations with the same degree of
specificity as required for its original Organics Implementation Plan. Such revised and updated
Organics Implementation Plan shall be subject to review and approval by COUNTY.
Additionally, COUNTY, in its sole discretion, may require CONTRACTOR to revise and update
its Organics Implementation Plan as COUNTY deems appropriate in order to more effectively
address any and all current and future regulatory requirements pursuant to mandatory
organics recycling and collection regulations, inclusive of SB 1383. CONTRACTOR shall
submit such revised Organics Implementation Plan to COUNTY within a reasonable
timeframe, as specified by COUNTY.
C. Pursuant to the requirements of SB 1383, and as stipulated in Agreement No.
17-569, CONTRACTOR shall implement organics recycling and collection at the residential
service level. Said residential level collection shall only take place upon receipt of official
notice from COUNTY to commence residential organics recycling and collection services.
D. Modified Provisions Relating to Special Services and Special Service Rates
In accordance with Section 7.2., Paragraph B of Agreement No. 17-569, both Exhibit B
(“Performance Standards”) and Exhibit D-2 to said Agreement (“Schedule of Maximum Special
Service Rates”) are hereby amended by updated and modified versions of both Exhibit B and
Exhibit D-2, the latter of which is revised with respect to certain Special Services, specifically
the Special Services and Special Service rates for contaminated and overfilled containers,
including recycling and organics containers, which provisions are hereby added to Agreement
No. 17-569 by the following amendments thereto:
1. The subsection entitled “Contaminated and Overfilled Containers” of section 6 of
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Exhibit B of Agreement 17-569 is hereby deleted in its entirety and replaced with
Exhibit B-1 to the Agreement (which exhibit is attached to this Amendment No. 2), as
hereby amended.
2. The maximum allowable rates for these special services are set forth in the revised
Exhibit D-2 to the Agreement (which exhibit is attached to this Amendment No. 2),
as hereby amended.
Agreement No. 17-569, as hereby amended by both Article I and Article II of this
Amendment No. 2, is hereby ratified and continued. All provisions, terms, covenants,
conditions and promises contained in the Agreement and not amended herein shall remain in
full force and effect.
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•
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EXECUTED as of the date first above set forth, and effective as of January 1, 2020.
3 CONTRACTOR
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~ ~ 6 ~c.~«=-,
7
7 (Authorized Signature)
8
9 Arthur G Pena -Vice President
10 Print Name and Title
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12 12094 Avenue 408
13 Mailing Address
14
15 Cutler, CA 93615
16 City, State, and Zip Code
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• • •
COUNTY OF FRESNO
-z ~
Nathan Magsig
Chairman of the Board of Supervisors
of the County of Fresno
ATTEST:
Bernice E. Seidel
Clerk of the Board of Supervisors
County of Fresno, State of California
By 21~ c ~n
Deputy
• •
EXHIBIT B-1
As provided in Article II, Section D of Amendment No. 2 to Agreement 17-569 (“the
Agreement”), Section 6 of Exhibit B thereto is amended, by the deletion in its entirety of
that subsection of Section 6 entitled “Contamination and Overfilled Containers,” which is
hereby replaced with the following subsection thereof:
“CONTAMINATED AND OVERFILLED CONTAINERS
CONTRACTOR and COUNTY anticipate that Customers will participate in
CONTRACTOR’s programs in such a manner as to minimize the total level of
contamination in Containers. CONTRACTOR and COUNTY also anticipate that
Customers will not overfill Containers beyond capacity, or spill contents next to the
Containers. COUNTY and CONTRACTOR agree to utilize the following procedures to
assist in minimizing contamination or overfilling:
OVERFILLED CONTAINERS:
’Overfilled’ Containers refer to a Container which is filled with materials to such a level
that spillage of said materials is imminent. For purposes of this section, if the lid of the
container does not close flat, it shall be CONTRACTOR’s discretion if the container can
still be serviced safely without risking spillage onto the ground or onto the vehicle,
creating a fire hazard.
Upon encountering an overfilled container, CONTRACTOR shall document the incident
of overfilling at the Customer location. CONTRACTOR shall then make a good faith
effort to service the Container. If CONTRACTOR determines that it would not be safe to
service the Container, CONTRACTOR will document why the Container was not
serviced and tag the Container with a notice as described below. Where feasible,
CONTRACTOR will obtain photographic evidence of the overfilled Container. Whether
the container was serviced or not, the CONTRACTOR will tag the Container with a
notice that includes:
A statement informing the Customer that the Container required special
services due to overfill of the Container. If the Container was not serviced, the
tag should also include directions on removing the additional items and the
charge that will be placed on the Customer account for an additional service
in accordance with the maximum rates set forth in the revised Exhibit D-2 of
this Agreement.
An explanation that a subsequent incident of overfilling may result in the
imposition of an overfilled container special service rate and, where
warranted, will require additional or larger-sized containers at an additional
cost to the Customer.
A phone number to contact CONTRACTOR to obtain additional information
and/or receive responses to questions the Customer may have.
In the event the Customer in question continues to place overfilled containers out for
Collection, CONTRACTOR may collect the Container, clean the surrounding area, and
charge the Customer the corresponding overfilled container special service rate as set
forth in the revised Exhibit D-2 of this Agreement. In addition, where there have been
three (3) or more instances of overfilling by a Customer in any 12 month period,
CONTRACTOR may, with approval of COUNTY, deliver additional or larger containers
to the Customer, or require additional weekly collections as appropriate, and charge the
Customer for the additional services at rates that do not exceed the maximum rates set
forth in the revised Exhibit D-2.
CONTAMINATED RECYCLING AND ORGANICS CONTAINERS:
For purposes of this Agreement, as modified by Amendment No. 2 thereto, the term
’Contaminated’ refers to materials placed in a Container other than those which the
Contractor and County agree are appropriate for Collection therein as more fully set
forth in Exhibit A of this Agreement.
Upon encountering a contaminated recycling or organics container, CONTR ACTOR
shall document the incident of contamination at a particular Customer location.
CONTRACTOR shall then service the Container, making whatever accommodations
are necessary. Where feasible, CONTRACTOR will obtain photographic evidence of
the contaminated container. CONTRACTOR will tag the Container with a notice that
includes:
The fact the Container required special services due to the presence of
inappropriate material in the Container.
A description of the materials that are inappropriate for Collection in the
Container.
An explanation that a subsequent incident of contamination may result in the
imposition of a contamination special service rate and, where warranted, will
require additional Solid Waste Containers, at an additional cost to the
Customer.
A phone number to contact CONTRACTOR to obtain additional information
and/or receive responses to questions the Customer may have.
In the event the Customer in question continues to place Containers with contamination
out for Collection, CONTRACTOR may collect the Container, and charge the Customer
a contamination special service rate as set forth in the revised Exhibit D-2 to this
Agreement, as modified by Amendment No. 2 thereto. In addition, where there have
been three (3) or more instances of contamination by a Customer in any twelve (12)
month period, CONTRACTOR may, with approval of COUNTY, deliver additional Solid
Waste Containers to the Customer, and charge the Customer for the additional services
at a rate that does not exceed the maximum rates set forth in the revised Exhibit D-2 to
this Agreement.”
Recycling
Surcharge
Overlay
(01/01/2020)4
Maximum 5%
30-gal cont $26.99 $19.66 $1.35 $0.20
60-gal cont $32.53 $26.47 $1.63 $0.36
90-gal cont $40.54 $34.74 $2.03 $0.54
Recycling
Surcharge
Overlay
(01/01/2020)4
Maximum 5%
30-gal cont N/A N/A N/A N/A
60-gal cont $41.74 $31.79 $2.09 $0.36
90-gal cont $47.68 $38.74 $2.38 $0.54
Recycling
Surcharge
Overlay
(01/01/2020)4
Maximum 5%
30-gal cont N/A N/A N/A N/A
60-gal cont $35.66 $28.35 $1.42 $0.36
90-gal cont $42.51 $35.93 $1.80 $0.54
Recycling
Surcharge
Overlay
(01/01/2020)4
Maximum 5%
30-gal cont N/A N/A N/A N/A
60-gal cont $47.32 $36.49 $2.37 $0.36
90-gal cont $53.60 $44.32 $2.68 $0.54
1. Organics rates that are effective January 1, 2020 are applicable only as to commercial customers who are required to comply with AB 1826 (Mandatory Organics Recycling, or MORe).
It is anticipated that, on or before January 1, 2022, State law will require ALL customers to comply with mandatory organics recycling and collection, including residential customers.
Notes
4. Recycling Surcharge to be implemented effective January 1, 2020 through and including June 30, 2025. Surcharge rate calculated based on recyclable commodity market value data
for Mixed Paper (MP) and Old Corrugated Containers (OCC) obtained from the Pulp and Paper Index (PPI) recycled fiber market index for the Los Angeles and/or San Francisco/Oakland
port regions, as well as quarterly tonnage and revenue data. Surcharge is adjusted on a quarterly basis, not to exceed 5 percent for the term of the surcharge. Haulers are to apply the
Surcharge as an overlay; haulers will add the Recycling Surcharge amount to the "New Rate" for base level solid waste service. If a hauler's rate is lower than the "New Rate," the
Surcharge amount will be added to the hauler's rate.
5. SER Rate is only applicable to Customers within the SER Territory (map attached). To Calculate the SER rate, a hauler will need to add the SER Overlay to the current rate. SER
Overlay rates are not subject to CPI Increases.
Adjusted for CPI and American Avenue Tip Fee Increase July 1, 2019
SER Rates Effective February 28, 2018
Recycling Surcharge Effective January 1, 2020
Organic Rates Effective January 1, 20201
Zone 2 (a)
Cart Size
EXHIBIT D
SCHEDULE OF MAXIMUM CART RATES ($ Per Month, Per Customer)
Zone 1
Cart Size New Rate
(07/01/2019)
SER Overlay5
(02/28/2018)
New Rate
(07/01/2019)
SER Overlay5
(02/28/2018)
Zone 2 (b)
Cart Size New Rate
(07/01/2019)
SER Overlay5
(02/28/2018)
Zone 3
New Rate
(07/01/2019)
SER Overlay5
(02/28/2018)
Organics Rate
(01/01/2020)2,3
2. Organics Rate calculated based on the prescribed methodology outlined in Section 4.2.E of the Exclusive Service Area Program Agreements. The rate is computed at 60 percent of
the base level solid waste rate ("New Rate") plus a processing cost per ton. Processing rates and rate assumptions are as follows:
Assumptions
300 lbs per cubic yard
201.974 gallons per cubic yard
1.485339697 lbs per gallon
4.333333333 weeks per month
Processing Rates
Zone 1 - $36.00
Zone 2a - $37.00
Zone 2b - $36.00
Zone 3 - $42.00
3. Organic rates have been calculated for Zone 3 for possible future implementation. However, haulers in Zone 3 may not offer organics collection service due to factors making service
in the Zone cost prohibitive. Customers should contact the hauler and inquire if organic collection service is available.
Organics Rate
(01/01/2020)2
Organics Rate
(01/01/2020)2
Organics Rate
(01/01/2020)2
Cart Size
Recycling
Surcharge
Overlay5
(01/01/2020)
Recycling
Surcharge
Overlay5
(01/01/2020)
Recycling
Surcharge
Overlay5
(01/01/2020)
Recycling
Surcharge
Overlay5
(01/01/2020)
Maximum 5%Maximum 5%Maximum 5%Maximum 5%
1 cu yd, 1 pickup/wk $71.94 $66.56 $3.60 $1.14 $82.21 $72.08 $4.11 $1.14 $83.57 $73.54 $4.18 $1.14 $82.97 $77.08 $4.15 $1.14
1 cu yd, 2 pickups/wk $133.14 $126.68 $6.66 $2.28 $143.37 $131.52 $7.17 $2.28 $142.32 $132.19 $7.12 $2.28 $145.74 $142.04 $7.29 $2.28
1 cu yd, 3 pickups/wk $194.33 $186.80 $9.72 $3.41 $209.01 $193.66 $10.45 $3.41 $212.50 $197.70 $10.63 $3.41 $215.49 $211.19 $10.77 $3.41
1 cu yd, 4 pickups/wk $255.49 $246.89 $12.77 $4.55 $280.05 $259.03 $14.00 $4.55 $288.43 $266.66 $14.42 $4.55 $290.50 $283.50 $14.53 $4.55
1 cu yd, 5 pickups/wk $316.72 $307.03 $15.84 $5.69 $354.64 $326.53 $17.73 $5.69 $371.75 $340.05 $18.59 $5.69 $366.71 $356.53 $18.34 $5.69
1 cu yd, 6 pickups/wk $377.89 $367.13 $18.89 $6.83 $432.51 $396.01 $21.63 $6.83 $464.26 $418.96 $23.21 $6.83 $446.13 $431.48 $22.31 $6.83
1.5 cu yd, 1 pickup/wk7 $83.76 $85.36 $4.19 $1.71 $95.72 $91.56 $4.79 $1.71 $93.10 $90.96 $4.66 $1.71
1.5 cu yd, 2 pickups/wk $155.18 $163.31 $7.76 $3.41 $169.77 $170.11 $8.49 $3.41 $160.05 $166.23 $8.00 $3.41
1.5 cu yd, 3 pickups/wk $226.59 $241.25 $11.33 $5.12 $248.67 $251.58 $12.43 $5.12 $237.84 $248.00 $11.89 $5.12
1.5 cu yd, 4 pickups/wk $297.97 $319.18 $14.90 $6.83 $333.56 $336.64 $16.68 $6.83 $325.54 $335.72 $16.28 $6.83
1.5 cu yd, 5 pickups/wk $369.36 $397.12 $18.47 $8.53 $421.81 $423.72 $21.09 $8.53 $421.89 $428.63 $21.09 $8.53
1.5 cu yd, 6 pickups/wk $440.78 $475.07 $22.04 $10.24 $513.38 $512.78 $25.67 $10.24 $523.60 $524.76 $26.18 $10.24
2 cu yd, 1 pickup/wk $94.76 $103.66 $4.74 $2.28 $109.52 $111.21 $5.48 $2.28 $102.80 $108.48 $5.14 $2.28 $116.79 $124.67 $5.84 $2.28
2 cu yd, 2 pickups/wk $176.77 $199.66 $8.84 $4.55 $196.15 $208.69 $9.81 $4.55 $177.75 $200.25 $8.89 $4.55 $213.94 $237.56 $10.70 $4.55
2 cu yd, 3 pickups/wk $258.82 $295.69 $12.94 $6.83 $288.32 $309.49 $14.42 $6.83 $263.15 $298.29 $13.16 $6.83 $293.66 $340.00 $14.68 $6.83
2 cu yd, 4 pickups/wk $340.87 $391.72 $17.04 $9.10 $387.10 $414.26 $19.36 $9.10 $362.69 $404.81 $18.13 $9.10 $403.08 $460.25 $20.15 $9.10
2 cu yd, 5 pickups/wk $422.91 $487.75 $21.15 $11.38 $489.13 $520.98 $24.46 $11.38 $472.09 $517.25 $23.60 $11.38 $510.26 $579.16 $25.51 $11.38
2 cu yd, 6 pickups/wk $504.93 $583.76 $25.25 $13.65 $594.16 $629.50 $29.71 $13.65 $582.92 $630.55 $29.15 $13.65 $622.05 $700.83 $31.10 $13.65
3 cu yd, 1 pickup/wk $115.77 $139.66 $5.79 $3.41 $139.09 $151.70 $6.95 $3.41 $126.83 $146.30 $6.34 $3.41 $152.53 $173.42 $7.63 $3.41
3 cu yd, 2 pickups/wk $217.99 $271.19 $10.90 $6.83 $252.81 $288.19 $12.64 $6.83 $221.13 $273.08 $11.06 $6.83 $283.93 $334.16 $14.20 $6.83
3 cu yd, 3 pickups/wk $320.23 $402.74 $16.01 $10.24 $373.28 $428.72 $18.66 $10.24 $329.83 $408.50 $16.49 $10.24 $381.36 $474.52 $19.07 $10.24
3 cu yd, 4 pickups/wk $422.47 $534.28 $21.12 $13.65 $501.78 $574.07 $25.09 $13.65 $450.74 $551.24 $22.54 $13.65 $522.01 $640.81 $26.10 $13.65
3 cu yd, 5 pickups/wk $524.73 $665.84 $26.24 $17.06 $634.00 $721.65 $31.70 $17.06 $573.81 $695.29 $28.69 $17.06 $663.90 $807.84 $33.20 $17.06
3 cu yd, 6 pickups/wk $626.94 $797.36 $31.35 $20.48 $769.62 $871.27 $38.48 $20.48 $706.71 $845.23 $35.34 $20.48 $807.50 $975.90 $40.38 $20.48
4 cu yd, 1 pickup/wk $127.46 $170.08 $6.37 $4.55 $170.52 $193.31 $8.53 $4.55 $152.70 $185.22 $7.64 $4.55 $196.23 $226.94 $9.81 $4.55
4 cu yd, 2 pickups/wk $241.16 $331.90 $12.06 $9.10 $303.18 $363.91 $15.16 $9.10 $268.60 $348.36 $13.43 $9.10 $367.11 $438.67 $18.36 $9.10
4 cu yd, 3 pickups/wk $354.81 $493.69 $17.74 $13.65 $463.78 $551.27 $23.19 $13.65 $401.23 $521.54 $20.06 $13.65 $494.25 $624.15 $24.71 $13.65
4 cu yd, 4 pickups/wk $468.51 $655.51 $23.43 $18.20 $624.30 $738.58 $31.22 $18.20 $551.12 $705.07 $27.56 $18.20 $672.15 $840.09 $33.61 $18.20
4 cu yd, 5 pickups/wk $582.19 $817.31 $29.11 $22.75 $788.88 $928.33 $39.44 $22.75 $703.97 $890.38 $35.20 $22.75 $850.92 $1,056.55 $42.55 $22.75
4 cu yd, 6 pickups/wk $695.88 $979.13 $34.79 $27.30 $957.27 $1,120.36 $47.86 $27.30 $867.46 $1,082.08 $43.37 $27.30 $1,034.26 $1,275.76 $51.71 $27.30
5 cu yd, 1 pickup/wk7 $146.73 $205.04 $7.34 $5.69 $208.59 $238.90 $10.43 $5.69 $178.67 $224.20 $8.93 $5.69
5 cu yd, 2 pickups/wk $278.71 $401.23 $13.94 $11.38 $380.50 $455.80 $19.03 $11.38 $316.23 $423.74 $15.81 $11.38
5 cu yd, 3 pickups/wk $410.66 $597.40 $20.53 $17.06 $572.24 $684.59 $28.61 $17.06 $477.38 $637.43 $23.87 $17.06
5 cu yd, 4 pickups/wk $542.59 $793.55 $27.13 $22.75 $770.81 $917.49 $38.54 $22.75 $651.83 $859.10 $32.59 $22.75
5 cu yd, 5 pickups/wk $674.58 $989.75 $33.73 $28.44 $974.26 $1,153.31 $48.71 $28.44 $836.53 $1,086.92 $41.83 $28.44
5 cu yd, 6 pickups/wk $806.54 $1,185.92 $40.33 $34.13 $1,182.29 $1,391.87 $59.11 $34.13 $1,033.92 $1,322.35 $51.70 $34.13
6 cu yd, 1 pickup/wk $182.72 $250.03 $9.14 $6.83 $246.59 $284.45 $12.33 $6.83 $204.59 $263.15 $10.23 $6.83 $272.13 $327.08 $13.61 $6.83
6 cu yd, 2 pickups/wk $346.48 $488.69 $17.32 $13.65 $457.77 $547.66 $22.89 $13.65 $363.76 $499.06 $18.19 $13.65 $511.44 $634.46 $25.57 $13.65
6 cu yd, 3 pickups/wk $510.24 $727.34 $25.51 $20.48 $680.62 $817.87 $34.03 $20.48 $553.47 $753.28 $27.67 $20.48 $686.43 $903.26 $34.32 $20.48
6 cu yd, 4 pickups/wk $673.97 $965.98 $33.70 $27.30 $917.28 $1,096.37 $45.86 $27.30 $752.54 $1,013.12 $37.63 $27.30 $926.09 $1,210.85 $46.30 $27.30
6 cu yd, 5 pickups/wk $837.70 $1,204.62 $41.89 $34.13 $1,159.67 $1,378.30 $57.98 $34.13 $969.09 $1,283.45 $48.45 $34.13 $1,171.75 $1,522.05 $58.59 $34.13
6 cu yd, 6 pickups/wk $1,001.51 $1,443.31 $50.08 $40.95 $1,407.39 $1,663.43 $70.37 $40.95 $1,200.46 $1,562.68 $60.02 $40.95 $1,423.43 $1,836.86 $71.17 $40.95
2 - Organics rates that are effective January 1, 2020 are applicable only as to commercial customers who are required to comply with AB 1826 (Mandatory Organics Recycling, or MORe). It is anticipated that, on or before January 1, 2022, State law will require ALL customers to comply with mandatory organics recycling and collection, including
residential customers.
3 - Organics Rate calculated based on the prescribed methodology outlined in Section 4.2.E of the Exclusive Service Area Program Agreements. The rate is computed at 60 percent of the base level solid waste rate ("New Rate") plus a processing cost per ton. Processing rates and rate assumptions are as follows:
Assumptions
300 lbs per cubic yard
201.974 gallons per cubic yard
1.485339697 lbs per gallon
4.333333333 weeks per month
Processing Rates
Zone 1 - $36.00
Zone 2a - $37.00
Zone 2b - $36.00
Zone 3 - $42.00
4 - Organic rates have been calculated for Zone 3 for possible future implementation. However, haulers in Zone 3 may not offer organics collection service due to factors making service in the Zone cost prohibitive. Customers should contact the hauler and inquire if organic collection service is available.
Notes
1 - Any bin service provided to residences (including 1, 2, and 3 cy Bins) will be reported as commercial service for reporting purposes.
5 - Recycling Surcharge to be implemented effective January 1, 2020 through and including June 30, 2025. Surcharge rate calculated based on recyclable commodity market value data for Mixed Paper (MP) and Old Corrugated Containers (OCC) obtained from the Pulp and Paper Index (PPI) recycled fiber market index for the Los Angeles and/or San
Francisco/Oakland port regions, as well as quarterly tonnage and revenue data. Surcharge is adjusted on a quarterly basis, not to exceed 5 percent for the term of the surcharge. Haulers are to apply the Surcharge as an overlay; haulers will add the Recycling Surcharge amount to the "New Rate" for base level solid waste service. If a hauler's rate is
lower than the "New Rate," the Surcharge amount will be added to the hauler's rate.
SER Overlay6
(02/28/2018)
New Rate
(07/01/2019)
New Rate
(07/01/2019)
Zone 3
Organics Rate
(01/01/2020)3,4
SER Overlay6
(02/28/2018)
Zone 2 (b)
Organics Rate
(01/01/2020)3,4
SER Overlay6
(02/28/2018)
New Rate
(07/01/2019)
SER Overlay6
(02/28/2018)
Organics Rate
(01/01/2020)3,4
New Rate
(07/01/2019)
Zone 1 Zone 2 (a)
Organics Rate
(01/01/2020)3,4
EXHIBIT D-1
SCHEDULE OF MAXIMUM BIN RATES1 ($ Per Month, Per Customer)
Adjusted for CPI and American Avenue Tip Fee Increase July 1, 2019
SER Rates Effective February 28, 2018
Recycling Surcharge Effective January 1, 2020
6 - SER rate is only applicable to customers within the SER Territory (map attached). To calculate the SER rate, a hauler will need to add current rate to SER Overlay. SER Overlay rates are not subject to CPI increases.
Service Rate Area
Organic Rates Effective January 1, 20202
7 - 1.5 and 5 cubic yard bins are provided at the discretion of the hauler. None of the Zone 3 service rate area haulers have proposed to provide these odd-sized containers, therefore, no rate is proposed in the Zone 3 service rate area.
Service Description
30-gal. cart $6.15 $10.25 $10.25 $25.63
60-gal. cart $10.25 $10.25 $15.38 $30.75
90-gal. cart $10.25 $11.28 $18.45 $35.88
1 CY bin $16.40 $20.50 $41.00 $41.00
1.5 CY bin $20.50 $25.63 $43.06 $46.13
2 CY bin $21.53 $25.63 $41.00 $46.13
3 CY bin $25.63 $30.75 $51.26 $51.26
4 CY bin $41.00 $46.13 $56.38 $56.38
5 CY bin $46.13 $51.26 $61.51 $61.51
6 CY bin $46.13 $56.38 $66.63 $76.88
300 gal. tub $61.51
30-gal. cart $10.25 $15.38 $15.38 $20.50
60-gal. cart $10.25 $15.38 $15.38 $20.50
90-gal. cart $15.38 $15.38 $18.45 $20.50
1 CY bin $20.50 $25.63 $30.75 $30.75
1.5 CY bin $25.63 $25.63 $30.75 $30.75
2 CY bin $25.63 $30.75 $30.75 $30.75
3 CY bin $30.75 $35.88 $35.88 $35.88
4 CY bin $35.88 $41.00 $41.00 $41.00
5 CY bin $51.26 $61.51 $61.51 $61.51
6 CY bin $56.38 $71.76 $76.88 $76.88
300 gal. tub $61.51
30-gal. cart $10.25 $10.25 $10.25 $25.63
Extra Day Pickup4:
Zone 1 Zone 2 (a)Zone 2 (b)Zone 3
ESAP Agreement Exhibit D-2
SCHEDULE OF MAXIMUM SPECIAL SERVICE RATES1
Rates Effective January 1, 2020
Service Rate Area
Additional Container Pickup2:
Late Set Out Pickup3:
Service Description
60-gal. cart $15.38 $15.38 $15.38 $30.75
90-gal. cart $18.45 $25.63 $25.63 $35.88
1 CY bin $32.80 $35.88 $41.00 $56.38
1.5 CY bin $37.93 $41.00 $46.13 $61.51
2 CY bin $46.13 $51.26 $56.38 $66.63
3 CY bin $52.28 $61.51 $71.76 $76.88
4 CY bin $56.38 $67.66 $71.76 $76.88
5 CY bin $71.76 $82.01 $92.26 $105.59
6 CY bin $71.76 $85.08 $97.39 $123.01
300 gal. tub $102.51
1.5 CY bin (Serviced once wk, per container per month)$82.01 $93.29 $93.29 $93.29
5 CY bin (Serviced once wk, per container per mo.)$152.74 $206.05 $222.45 $222.45
300 gal. tub $92.26
Side yard charge per household per mo.7 $10.25 $10.25 $15.38 $15.38
On-call bulky items pickup per CY per pickup $25.63 $25.63 $35.88 $35.88
Maximum access charge per container per mo.8 $30.75 $30.75 $30.75 $30.75
Key or code charges per container per mo.9 $15.77 $15.38 $15.38 $15.38
Enclosure charges per container per mo.10 $15.77 $15.38 $15.38 $15.38
Gate service charges per container per mo.11 $15.77 $15.38 $15.38 $15.38
Drive-in charge per account per mo. 0.25 mile or under12 $15.77 $15.38 $15.38 $15.38
Cart switch, per switch13 $31.52 $30.75 $30.75 $30.75
Bin switch, per switch13 $57.80 $61.51 $61.51 $61.51
Replacement of damaged carts, per cart flat fee14 $63.06 $61.51 $61.51 $76.88
Locking bin charge, per mo. for wk collection $26.27 $25.63 $25.63 $25.63
Miscellaneous Special Services5,6:
Service Rate Area
Rates Effective January 1, 2020
Extra Day Pickup (Cont'd.)4:
Non-Standard Container Sizes:
Zone 1 Zone 2 (a)Zone 2 (b)Zone 3
ESAP Agreement Exhibit D-2
SCHEDULE OF MAXIMUM SPECIAL SERVICE RATES (CONT'D.)
Service Description
Enclosure clean up, per event $21.01 $20.50 $20.50 $20.50
Cart cleaning, per container $26.27 $25.63 $25.63 $25.63
Bin cleaning, per container $26.27 $25.63 $25.63 $25.63
Cart customer extra recycling, per 90 gal. container per
mo.15 $5.26 $5.13 $11.28 $25.63
Bin customer extra recycling, per CY per mo.15 $21.01 $20.50 $20.50 $20.50
Overfilled trash, recycling or organics cart, per event $15.00 $15.00 $25.00 $25.00
Overfilled trash, recycling or organics bin, per event per
cubic yard $15.00 $15.00 $30.00 $30.00
Contaminated recycling or organics cart, serviced same
day16 $20.00 $25.00 $20.00 $25.00
Contaminated recycling or organics bin, serviced same
day16 $20.00 $25.00 $30.00 $35.00
Contaminated recycling or organics cart, serviced next
day16 $30.00 $30.00 $25.00 $35.00
Contaminated recycling or organics bin, serviced next
day16,17 $25.00 $25.00 $40.00/$5.00 $55.00/$5.00
Green waste collection (in Zone 2b)NS
Resume/Reactivation Fee per event $25.00 $25.00 $25.00 $25.00
Late Fee per mo.$3.00 $3.00 $3.00 $3.00
Interest on Unpaid Late Balance, % or min./mo.1.5% or $3/mo 1.5% or $3/mo 1.5% or $3/mo 1.5% or $3/mo
Elevation surcharge above 4,000 foot elevation18 up to 40%
surcharge
Off-Road surcharge19 up to 15%
surcharge
Legend:
Service Rate Area
Zone 1 Zone 3
Miscellaneous Special Services (Cont'd.):
Zone 2 (a)
Rates Effective January 1, 2020
Zone 2 (b)
ESAP Agreement Exhibit D-2
N/A = blacked out; min. = minimum payment;
Overfilled and Contaminated Containers:
Miscellaneous Fees and Surcharges:
SCHEDULE OF MAXIMUM SPECIAL SERVICE RATES (CONT'D.)
NS = Not submitted (Contractor may negotiate price directly with Customer)
wk. = week; mo. = month; gal. = gallon; CY = cubic yard;
11. "Gate service charge" is allowed when the Customer requires the driver to open a closed or locked gate in order to empty a
container.
8. Charges for key, enclosure, gate, long walk, and drive-in service charges are not cumulative pickup charges. The
CONTRACTOR’s rates for a Customer requiring one or more of the five special services will be a maximum rate (as specified in the
table) per pickup for any combination of the following five service categories.
9. "Key or code charge" is allowed when the Customer requires the driver to carry a key and unlock a lock to empty the container.
Key or code charges do not apply if a Customer's lock is left in the unlocked position.
10. "Enclosure charge" is allowed when the Customer requires that the driver remove a container from an enclosure to empty it and
replace it when emptied.
13. "Cart or bin switch" charges are allowed when a Customer requests a change in the size of a cart or bin more than once per year
per container. All Customers may switch the size of any cart or bin once per year without charge.
Notes for Special Services:
2. "Additional Container Pickup" charge is allowed when the Customer requires the CONTRACTOR to empty containers above and
beyond the number of containers that the Customer subscribes to. CONTRACTORS may not charge the same rate (as the first
container) to empty additional containers if they are already on site at the service location (home or business location).
3. "Late Set Out Pickup" charge is allowed when the Customer requires the CONTRACTOR to return to the service location to
empty a container on same day as regular service due to late set out of the container by the Customer, if hauler is still in the area.
6. The following notes apply to Western Solid Waste Customers Only:
a. Furniture & Appliances: Prices will be determined by item depending on weight and density.
12. "Drive-in charge" is allowed when the Customer requires the CONTRACTOR to drive up long driveways (in excess of 40 feet up
to 0.25 mile) to empty a container. Over 0.25 mile negotiated between customer and hauler.
5. The following notes apply to Granite Solid Waste, Inc. Customers Only:
a. Winter surcharge for customers above 4,000 foot elevation for the winter months of November through March to be
charged at an additional 20% of the monthly rate for both residential and commercial customers.
b. Winter Surcharge for Home Owners Associations that use cart service from May through October to be
charged $2.00 per cart per month for carts not being used from November through April.
c. 30-gal carts for the elderly will be negotiated between the hauler and the resident.
4. Extra Day Pickup charge is allowed when the Customer requires the CONTRACTOR to empty the container on a different day
other than the regular service day.
7. Side yard charge is allowed when the Customer requires the driver to empty a container that is more than 10 feet from where the
collection vehicle has access to the service location (such as a curb or enclosure at the home or business).
1. Haulers are required to pay all fees and Surcharges. Existing fees and Surcharges include:
a. AB 939 Service Fee equal to three percent (3%) of Rate Revenues for the first and second year
and an AB 939 Service Fee equal to four percent (4%) of Rate Revenues for the third and all
subsequent years of the Extension Term.
b. Hauler shall pay the COUNTY Solid Waste Surcharges, for Solid Waste generated in the COUNTY,
which as of the date of execution of this Agreement are currently in the the COUNTY, which as of
the date of execution of this Agreement are currently in the following amounts:
• Southeast Regional (SER) Surcharge. Three Dollars and Fifty Cents ($3.50) per-ton closure/post-
closure maintenance fee for Solid Waste generated and collected within the Southeast Regional
Solid Waste Commission Area as identified in Fresno County Ordinance Code Section 8.20.035;
and
• Solid Waste Management Program Activities (SWMPA) Surcharge. Three Dollars and Forty-One
Cents ($3.41) per-ton surcharge for Solid Waste management program activities (NOTE: this
surcharge is incorporated into American Avenue Landfill tipping fee).
As provided in Section 7.2.C, each rate will be adjusted annually by 75 percent (75%) of the CPI for Cart Rates, 65 percent (65%) of
the CPI for Bin Rates and 65 percent (65%) of the CPI for all other Special Service rates.
Notes for Special Services (Cont'd).:
14. "Replacement of damaged" a charge is allowed when a Customer requires the replacement of a cart that was accidentally
damaged by Customer or due to Customer negligence. The replacement charge shall be at a flat rate for a cart of any size (30, 60 or
90 gallons) due to Customer negligence. CONTRACTOR shall replace any cart which is stolen or becomes unusable by reason of
normal wear and tear or damage by Collection operations at no charge for the replacement during any twelve (12)-month period.
16. Overfilled container and contamination special service rates may be imposed upon following the process indicated in Exhibit B,
Section 6 of the ESAP Agreement.
17. For contaminated recycling and organics containers serviced next day, the rate in Zones 2b and 3 are structured as a base
charge for the first cubic yard, plus an additional charge per cubic yard thereafter.
15. All Bin Customers are eligible for recycling collection services equal to the amount of solid waste collection services that they
subscribe to at no extra charge. All Cart Customers are eligible for up to 90 gallons of recycling collection service at no extra charge
regardless of their level of solid waste collection service (30, 60 or 90 gallons). CONTRACTOR may charge for recycling collection
services in excess of the equivalent amount of solid waste collection services that a customer subscribes to (e.g., if the customer
subscribes to 1 CY of solid waste collection and would like 2 CY of recycling collection, the Customer would receive 1 CY yard of
recycling collection at no extra charge and the CONTRACTOR may charge for 1 CY of recycling collection).
18. Elevation Surcharge for Customers above 4,000 foot elevation.
19. Off road surcharge for Customers on roads that are not improved, roads that are not maintained (such as dirt, gravel and/or
paved, non-County roads), and/or easement roads.
EXHIBIT L
QUARTERLY CALCULATION AND EXAMPLE OF RECYCLING SURCHARGE
1) Recycling Surcharge Formula:
(Recycling Tons Collected - CRV items (calculated at 3.75%)) X
Net Market Value of Recyclables* ÷ ESAP Revenues = Recycling Surcharge
2) Example calculation of Recycling Surcharge:
Step/Data Point Calculation
A Recycling Tonnage reported 4,171
B Adjusted Tonnage (Recycled tons minus 3.75%) 4,014
C Net Market Value of Recyclables, per ton -$56.00*
D Total Net Market Value of Recyclables (B) X (C) -$224,784
E ESAP Revenues for preceding reporting period $6,229,726
F Recycling Surcharge (D) ÷ (E) 3.61%
*Net Market Value of Recyclables, per ton (C) is calculated as follows:
3 Month Average of ((Weighted Value of Mixed Paper/ton**) + (Weighted Value of OCC/ton**)) = Net Market Value of
Recyclables/ton
** Weighted Values of mixed paper and Old Corrugated Containers (OCC) are derived from the recycled fiber market index (PPI
Recovered Paper – Export Market Index, Mixed Paper & Old Corrugated Containers (OCC), Los Angeles and/or San
Francisco/Oakland commodity designation), and related processing costs.
3) Timeline of Recycling Surcharge Calculation and Effective Date:
Reporting Period
End Date
Quarterly Recycling
Surcharge
Effective Date
Quarterly Recycling
Surcharge End Date
1 September 30, 2019 January 1, 2020 March 31, 2020
2 December 31, 2019 April 1, 2020 June 30, 2020
3 March 31, 2020 July 1, 2020 September 30, 2020
4 June 30, 2020 October 1, 2020 December 31, 2020
5 September 30, 2020 January 1, 2021 March 31, 2021
6 December 31, 2020 April 1, 2021 June 30, 2021
7 March 31, 2021 July 1, 2021 September 30, 2021
8 June 30, 2021 October 1, 2021 December 31, 2021
9 September 30, 2021 January 1, 2022 March 31, 2022
10 December 31, 2021 April 1, 2022 June 30, 2022
11 March 31, 2022 July 1, 2022 September 30, 2022
12 June 30, 2022 October 1, 2022 December 31, 2022
13 September 30, 2022 January 1, 2023 March 31, 2023
14 December 31, 2022 April 1, 2023 June 30, 2023
15 March 31, 2023 July 1, 2023 September 30, 2023
16 June 30, 2023 October 1, 2023 December 31, 2023
17 September 30, 2023 January 1, 2024 March 31, 2024
18 December 31, 2023 April 1, 2024 June 30, 2024
19 March 31, 2024 July 1, 2024 September 30, 2024
20 June 30, 2024 October 1, 2024 December 31, 2024
21 September 30, 2024 January 1, 2025 March 31, 2025
22 December 31, 2024 April 1, 2026 June 30, 2025