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HomeMy WebLinkAboutK- 4 Service Agreement between Cities of Azusa and Covina - Solid Waste Contract Management / 2 .10 The City of Az us AZUSA . GHT & WATER For Quality of Life AGENDA TO: HONORABLE MAYOR AND CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES VIA: RICK COLE, CITY MANAGER r____C/DATE: NOVEMBER 24, 1998 RE: SERVICE AGREEMENT BETWEEN CITIES OF AZUSA AND COVINA — SOLID WASTE CONTRACT MANAGEMENT Recommendation Approve the proposed service agreement between the Cities of Azusa and Covina for Covina to provide staff service to manage Azusa's solid waste contract and design and implement waste reduction programs in order to comply with AB 939. Summary Since the departure of Ginny Dadaian,the management of solid waste contract was shifted to the Light& Water Department and has been managed to some extent by the Consumer Services Manager. With his limited time and knowledge,Consumer Services Manager has relied on the expertise of the City of Covina staff for assistance and consultation. During the time when I was acting as the city administrator,I met with the city manager of Covina to explore the idea of sharing his solid waste staff and in return,Azusa would share his staff's costs, including salary, benefit, and overhead. The Light & Water Department has had a similar agreement with the Cities of Banning and Colton since 1987. That agreement calls for Azusa to provide staff support in the areas of electrical resource procurement, contract negotiation, contract management, etc.. The proposed contract is modeled after our existing contract,and has been reviewed by the attorneys of both cities. Background There are several issues on the horizon with respect to solid waste disposal that would require much intensified effort in the coming months by city staff—the closure of Spadra landfill in July,1999,the 50% reduction of waste stream by 2000 mandated by AB 939,and the ever increasing cost of solid waste disposal charged by the City's contractor. Solid waste management is one of the critical functions of the local government and it impacts every citizen and business fiscally and environmentally on daily basis. Resource required to manage it is beyond the part-time approach that the City currently employs. The City of Covina 729 N. Azusa Avenue P.O. Box 9500 Azusa, California 91702 626/812-5208 (phone) 626/334-3163 (fax) utilities1azusa.ca gov (e-mail) 1, ,c_.' /)/ 7/ 9 Pg. 2: Agenda—Service Agreement Between Cities of Azusa and Covina faces the same issues, but it has experienced staff to manage its solid waste program. By contracting with the City of Covina, both cities can benefit from reduced staff costs. Fiscal Impact Current fiscal budget has $68,529 budgeted for salary and benefit for a staff position under Solid Waste Fund. By contracting with Covina,it is estimated annual cost would be around$40,000. Savings from staff costs would definitely be helpful to fund AB 939 public education and program implication costs. attachment Ji • • SERVICES AGREEMENT BETWEEN THE CITY OF AZUSA AND THE CITY OF COVINA JANUARY 19, 1999 • TABLE OF CONTENTS Section 1 3 Section 2 4 Section 3 4 Section 4 4 Section 5 4 Section 6 4 Section 7 5 Section 8 5 Section 9 5 Section 10 5 Section 11 5 Section 12 5 Section 13 6 Section 14 6 Page 2 SERVICES AGREEMENT THIS AGREEMENT is made and entered into this 19th day of January, 1999, by and between the CITY OF AZUSA ("Azusa") and the CITY OF COVINA ("Covina")together referred to as the "Cities;" each created pursuant to the Constitution and laws of the State of California, do, hereby: WITNESSETH: WHEREAS, each of the Cities maintains an exclusive franchise agreement for refuse collection services with Arakelian Enterprises, Incorporated("Arakelian"); and WHEREAS, each of the Cities must administer their respective franchise agreements by monitoring costs, services, and customer complaints, to ensure that Arakelian's contract obligations are met; and WHEREAS, each of the Cities is subject to the provisions of the California Integrated Waste Management Act of 1989 ("AB 939"), which requires implementation of programs that will divert 50%of the waste from landfills by the year 2000; and WHEREAS, each of the Cities is located in the East San Gabriel Valley and will likely be impacted by the closure of the Spadra Landfill in 1999 and will need to examine alternative waste transfer arrangements; and WHEREAS, the program alternatives to address AB 939 and waste transfer needs vary in cost by millions of dollars per year and require further evaluation and analysis; and WHEREAS, Covina employs staff who can provide services of an employee in the area of solid waste management and contract administration to Azusa; and WHEREAS, Covina is willing to, and Azusa desires, to share the services of Covina's employee as specified herein and the salary and other costs of Covina's employee performing those services on behalf of the Cities; NOW, THEREFORE, the Cities, for and in consideration of the mutual promises and agreements herein contained, do hereby agree as follows: SECTION 1. Covina has employed staff that is competent in matters relating to solid waste contract management (hereinafter referred to as "Staff'). Covina agrees, during the term of this Agreement, to supply Azusa with access to Covina employees to perform the services specified in Section 2 of this Agreement. Page 3 SECTION 2. The services to be performed by Covina Staff for Azusa shall include the following: A. Be familiar with and monitor all existing contracts pertaining to the collection, transfer and disposal of municipal solid waste. B. Assist in review of contract changes proposed by exclusive franchisee, and annual rate adjustments as may be required through existing contract. C. Be familiar with the requirements of AB 939 and monitor legislative and regulatory changes thereof. D. Assist in meeting the reporting deadlines associated with AB 939 compliance and in the long-range planning related to implementation of programs associated with AB 939. E. Evaluate and make recommendations regarding waste transfer to reduce cost impacts on rate payers. F. Attend City Council meetings to make presentations and answer questions. G. Represent Azusa to other agencies and contractors on waste management and recycling issues. SECTION 3. The Staff shall be under the direction and the control of the Public Works Director of Covina. The Public Works Director of Covina shall meet and consult with Azusa's Director of Utilities to determine which services the Staff should be directed to perform on behalf of Azusa. SECTION 4. This Agreement shall become effective as of the date hereof and shall continue in full force and effect until terminated. SECTION 5. Azusa agrees to share costs of Staff based on the number of hours worked on matters specified in Section 2 hereof on behalf of Azusa. The costs to be shared shall include salary and benefits, plus overhead equal to fifteen (15) percent of salary and benefits. Costs shall also include out-of-pocket expenses incurred on such matters and shall include, but not be limited to, travel, (including automobile), telephone and reproduction of documents. Staff shall keep records of time devoted to Azusa on matters specified in Section 2 hereof and such records shall be used by Covina to prepare bills specified in Section 6 hereof. SECTION 6. Covina shall render bills to Azusa on or about the first day of the month for costs incurred during the previous month. Azusa shall make payments therefor within twenty (20) days after receipt of the bill. Bills that are not paid in full within twenty (20) days after receipt shall thereafter bear interest at the rate of one percent (1%) per month on the unpaid balance, or at the maximum legal rate, whichever is less, until payment is made. Remittances received by mail will be accepted without assessment of such charges where the postmark indicates the payment was mailed within twenty(20) calendar days after receipt. Page 4 SECTION 7. No party or agents, or members of its governing body, officers, commissioners or employees shall be liable to any other party for direct or consequential damage suffered by any other party as a result of the first party's performance or non- performance, whether negligent or otherwise, under this Agreement. Each party shall release and hold harmless the other party, members of its governing body, officers, commissioners and employees from any claim or liability for damages to customers of the first party as a result of the other party's performance or non-performance on all matters included in this Agreement. Each party shall release and hold harmless the other party, members of its governing body, officers, commissioners and employees from any claim or liability that results from a franchisee or other contractor, or fine imposed by the State of California pursuant to AB 939, whether negligent or otherwise, under this Agreement. SECTION 8. Except as otherwise provided herein, the duties, obligations, and liabilities of the parties are intended to be several and not joint or collective, and nothing contained herein shall ever be construed to create an association, trust or partnership or impose a trust or partnership duty, obligation or liability on or with regard to the other party. Each party shall be individually responsible for its own obligations as herein provided. SECTION 9. No party shall be considered to be in default in the performance of any of its obligations hereunder, other than the obligations of a party to make payments of money due under this Agreement, if failure of performances shall be due to uncontrollable forces. The term "uncontrollable forces" shall mean any cause beyond the control of the party to perform such obligation, including but not limited to failure of or threat of failure of facilities, flood, earthquake, storm, fire, lightning and other natural catastrophes, epidemic, war, riot, civil disturbance or disobedience, labor dispute, labor or material shortage, sabotage, government priorities and restraint by court order or public authority, and action or non-action by or failure to obtain the necessary authorizations or approvals from any governmental agency or authority, which by exercise of due diligence such party could not reasonably have been expected to avoid and which by exercise of due diligence it shall be unable to overcome. Nothing contained herein shall be construed as to require any party to settle any strike or labor dispute in which it may be involved. SECTION 10. This Agreement is for the sole benefit of the parties and shall not be construed as granting rights to any person other than the parties or imposing obligations on any party to any person other than a party. SECTION 11. This Agreement shall be interpreted, governed by and construed under the laws of the State of California. SECTION 12. 12.1 Except as provided otherwise, any notice, demand or request provided for in this Agreement shall be in writing and shall be deemed properly served, Page 5 given or made if delivered in person or sent by registered or certified mail, postage prepaid, to the persons specified below. 12.1.1 City of Azusa Mr. Joseph F. Hsu Director of Utilities P.O. Box 9500 Azusa, CA 91702-9500 12.1.2 City of Covina Mr. Vince Mastrosimone Public Works Director 125 E. College Street Covina, CA 91723-2199 12.2 Informal communications of a routine nature, including requests for funds and related matters, shall be conducted in such manner as the Public Works Director of Covina shall arrange. 12.3 Any party may, at any time by written notice to all other parties, designate different or additional persons or different addresses for the giving of notices hereunder. SECTION 13. Either Azusa or Covina may terminate this Agreement at any time and for no cause upon thirty(30) days advance written notice to the other party. SECTION 14. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument. Page 6 • IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the 19th day of January, 1999. THE 0 AZUSA -' i By: Title: Mayor ATTEST: / t By: ../1� . ( Title: City Clerk t'HI: C OF 2'9!' AO AO By: rtle: Mayor ATTEST: By: .�. a % (411' Title: City Clerk Page 7