HomeMy WebLinkAboutE-8 Staff Report - Approval of Amendment to Organic Waste Processing ContractCONSENT ITEM
E-8
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: LIZA SAGUN, ENVIRONMENTAL PROGRAMS SPECIALIST
DATE: NOVEMBER 15, 2021
SUBJECT: APPROVAL OF AMENDEMENT TO ORGANIC WASTE PROCESSING AND DIVERSION
SERVICES CONTRACT WITH RECYCLED WOOD PRODUCTS
BACKGROUND:
The City of Azusa (“Azusa”) is currently under agreement with Recycled Wood Products (“RWP”) for municipal green
waste processing and diversion services through October 31, 2023. Pursuant to the implementation of the requirements of
SB 1383 (Short-lived Climate Pollutants), starting January 1, 2022 Azusa residents and businesses will be required to
recycle food waste and green waste together in a single container. The recommended action would amend the agreement
with RWP to include the processing and diversion of mixed organic waste.
RECOMMENDATION:
Staff recommends the City Council take the following action:
1) Approve the amendment to agreement with Recycled Wood Products for organic waste processing and
diversion services from January 1, 2022 to October 31, 2023.
ANALYSIS:
T he City of Azusa has a contract for processing of green waste with Recycled Wood Products (RWP) located in Pomona,
where green waste is composted. The current contract enabled the City to comply with AB 1594 (Williams, Green Waste
Diversion Bill) effective January 1, 2020 and meet its AB 939 diversion goal. Per AB 1594, green materials used as
Alternative Daily Cover (ADC) will no longer be considered as diversion as of January 1, 2020. The City complied with
this State law.
Effective January 1, 2022, SB 1383 (Short-lived Climate Pollutants) requires all jurisdictions in the State of California to
recycle organic waste, including food waste. Since the City’s contract with RWP only includes processing of green waste,
the contract needs to be amended to include green waste, food scraps, and food-soiled paper. Green waste includes grass
clippings, flower & hedge trimmings, leaves & branches, lumber, scrap wood, & plywood types (not painted or treated),
and weeds. Food scraps include any putrescible matter produced from human or animal food production, preparation, &
consumption activities, including but not limited to bread, rice, pasta, cheese & dairy, coffee filters, flowers & herbs, fruits
& vegetables, meat, bones, poultry, seafood, & soft shells (e.g. lobster, crab, & shrimp). Food-soiled paper includes 100%
plant-fiber based with no petroleum, wax, or bio-plastic coating, liner, or laminate soiled only with food and/or drink
liquids; 100% fiber based, compostable to-go containers & serving-ware, egg cartons (paper), food-stained paper, paper
napkins & kitchen towels, paper food boats, paper packaging, paper plates & cups, pizza boxes.
The cost to process green waste under the current agreement is $51.36 per ton. The change to process mixed organic under
the proposed amendment to the agreement would increase this disposal fee to $79.00 per ton. Also, the surcharge for more
than 5% contamination would increase from $18.00 per ton to $34.00 per ton. These rates would increase by 3% in January
2023, and the contract would terminate on October 31, 2023.
RWP is in the process of obtaining all permits and certification required to accept and process organic waste in compliance
with SB 1383. RWP shall provide satisfactory evidence to the City regarding such permitting at least seven (7) days prior
the first deliveries of organic waste to RWP facility. In the event RWP is not able to provide evidence of permits to the
City by January 1, 2022, the City will direct Athens Services to deliver its organic waste to Athens Services’ American
Organics Facility in Victorville, and RWP minimum delivery requirements would be reduced pro-rata.
APPROVED
CITY COUNCIL
11/15/2021
Organic Waste Processing Contract Amendment
November 15, 2021
Page 2
FISCAL IMPACT:
The cost for the organic waste processing is included in the monthly processing and disposal cost collected by Athens
Services from all customers. There is no fiscal impact to the City.
Prepared by: Reviewed and Approved:
Liza Sagun Manny Robledo
Environmental Programs Specialist Director of Utilities
Reviewed and Approved: Reviewed and Approved:
Paul Reid Sergio Gonzalez
Environmental Programs Manager City Manager
Attachments:
1) RWP Second Amendment
2) RWP First Amendment
3) RWP Original Agreement
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CITY OF AZUSA
SECOND AMENDMENT TO AGREEMENT FOR GREEN WASTE
PROCESSING AND DIVERSION SERVICES
1. PARTIES AND DATE
This Second Amendment to Agreement for Green Waste Processing and Diversion
Services (“Amendment”) is entered into as of the 1st day of January 2022 by and between the City
of Azusa (herein after referred to as “City”) and Recycled Wood Products, (hereinafter referred to
as “Contractor”).
2. RECITALS
2.1 City and Contractor entered into an Agreement for Green Waste Processing and
Diversion Services dated October 28, 2013 (“Agreement”), whereby Contractor agreed to provide
green waste processing and diversion services for green waste generated inside the jurisdictional
limits of the City of Azusa (“Services”).
2.2. First Amendment. The Parties entered into the First Amendment to extend the term
of the Agreement from November 1, 2018 to November 1, 2023 and increase disposal rates.
2.3 Second Amendment. The Parties desire to enter into this Amendment in order to
comply with Senate Bill 1383 that requires recycling of mixed organic waste from January 1, 2022
to October 31, 2023 on the same terms, covenants and conditions provided in the Agreement;
unless otherwise amended.
3. AMENDMENTS
3.1 The term “Green Waste” used throughout the Agreement is hereby deleted and
replaced with “Organic Waste,” as defined in Section 4.1 herein.
3.2 Section 1 is hereby deleted and replaced in its entirety with the following:
“1. SALE OF GREEN WASTE CAPACITY AND SERVICES.
Contractor agrees to sell to City, and City agrees to purchase from Contractor
Capacity and Services for the purpose of recycling “Organic Waste” as that term
is defined in Section 4, at the Contractor’s Processing Facility identified as
Recycled Wood Products Facility, located at 1313 E. Phillips Boulevard, Pomona,
CA 91766.”
3.3 Section 2.1 and Section 2.2 are hereby deleted and replaced in its entirety with the
following:
Attachment 1
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“2.1 Term. The term of this Agreement shall be from January 1, 2022
to October 31, 2023. Contractor shall complete the Services within the term of
this Agreement, and Contractor’s SB 1383 compliance and reporting obligations
for the Services provided shall extend beyond the term of the Agreement until
satisfied.
3.4 Section 2.3.9 is hereby added:
“2.3.9 Permit to Process Organic Waste Including Food Waste.
Contractor’s Processing Facility shall be fully permitted, licensed, and/or certified
to accept and process Organic Waste in compliance with SB 1383 prior to
accepting Organic Waste from the City hereunder, and once permitted at all times
during the term of this Agreement. Contractor shall provide satisfactory evidence
regarding such permitting at least seven (7) days prior to the first deliveries of
Organic Waste by the City hereunder.”
3.5 Section 3.1 Base Rate is hereby deleted and replaced in its entirety with the
following and Section 3.2 adjustments shall no longer be applicable:
“3.1. Base Rate. City shall pay a disposal fee of seventy-nine dollars
($79.00) for each ton of Organic Waste delivered to the Processing Facility
(“Disposal Fee”).”
3.6 Section 3.3 Contamination is hereby deleted and replaced in its entirety with the
following:
“3.3. Contamination. Any delivery made under this Agreement which
contains more than five percent (5%), by volume, of materials that are not Organic
Waste shall be deemed “Contaminated Organic Waste” and subject to a Disposal
Fee surcharge of $34 per ton as determined by Contractor’s intake and load
examination staff. City’s franchise hauler shall be notified of such surcharge by
Contractor within one (1) working day of the Contaminated Organic Waste
delivery to Contractor. Contractor shall provide sufficient photo evidencing the
contamination type and volume included in the delivered load and shall provide to
City’s franchised hauler.”
3.7 Section 4.1 is hereby deleted and replaced in its entirety with the following:
“4.1 Organic Waste. The Organic Waste to be disposed of pursuant
to the terms of this Agreement shall be Organic Waste that is or includes a mixture
of:
(a) GREEN WASTE: any vegetative or other wood waste
generated from the maintenance or alteration of residential,
commercial, or industrial premises including, but not limited to,
grass clippings, leaves, tree trimmings, prunings, brush, weeds,
flowers, herbs, and holiday trees, lumber, scrap wood, plywood
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types (not painted or treated), and non-hazardous wood waste;
(b) FOOD WASTE: food scraps and trimmings and other
putrescible waste that results from food production, preparation,
storage, consumption, or handling. For the avoidance of doubt,
Food Waste includes, without limitation, meat, fish, and dairy
wastes; fruit and vegetable wastes; grain waste; and compostable
food-contaminated paper products;
(c) FOOD-SOILED PAPER: 100% plant-fiber based with no
petroleum, wax, or bio-plastic coating, liner, or laminate soiled
only with food and/or drink liquids; 100% fiber based,
compostable to-go containers & serving-ware, egg cartons
(paper), food-stained paper, paper napkins & kitchen towels,
paper food boats, paper packaging, paper plates & cups, pizza
boxes;
(d) Delivered to the Processing Facility in either sanitation
trucks or transfer trailers.”
3.8 Section 4.2 Amount of City Green Waste to be Delivered is hereby deleted and
replaced in its entirety with the following:
“4.2 Amount of City Organic Waste to be Delivered. Beginning on
January 1, 2022, the City shall have the right to deliver not more than 4,000 tons
of Organic Waste to the Processing Facility under the provisions of this
Agreement. However, City shall be responsible for payment to Contractor for a
minimum guarantee of 3,000 tons during each annual period; provided, however,
such minimum guarantee shall be reduced pro-rata per day for any period during
which the Contactor Processing Facility is not fully permitted, licensed, and/or
certified to accept Organic Waste in accordance with SB 1383 or City does not
receive satisfactory evidence regarding the same.”
3.9 Section 4.3 Green Waste Diversion is hereby deleted and replaced in its entirety
with the following:
“4.3 Organic Waste Diversion. Contractor agrees that none of the
City’s Organic Waste shall be landfilled or taken to a facility as alternative daily
cover (ADC). Contractor agrees all of the City’s Organic Waste will be processed
and one-hundred (100%) percent will be diverted through sale as landscape
organic material, in accordance with SB 1383. To comply with the City’s SB 1383
Procurement Target, Contractor agrees to provide up to 10% of the total tonnage
of organic products produced from Organic Waste delivered by the City back to
the City at no charge. Contractor may fulfill this requirement by any or a
combination of the following:
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(a) Host one (1) compost and mulch giveaway for Azusa
residents each year, at a date, time, and location specified by the
City. Host means the Contractor will provide all labor and
materials required by the event at no charge to the City.
(b) Provide compost and/or mulch as a direct service to a third
party on behalf of the City (for example, Contractor may provide
mulch to a City-contracted landscaper or other approved third
party), at no charge to the City.”
3.10 Section 5.3 is hereby added to Section 5 Miscellaneous Operational Matters.
5.3 SB 1383 Compliance. Contractor shall process, recycle,
and compost all commingled Organic Waste detailed in Section 4.1(c) delivered
by the City’s franchise hauler to Contractor Processing Facility in a manner
consistent with the regulatory requirements detailed in SB 1383 including, but not
limited to:
(a) Composting Operations and Processing Facilities Regulatory
Requirements. Contractor shall comply with all the
regulatory requirements for composting operations and
processing facilities as specified in SB 1383 including, but
not limited to, operating standards, load-checking, sampling,
recordkeeping, and reporting requirements.
(b) Recordkeeping and Reporting Requirements. Contractor shall
maintain records required in SB 1383 and provide reports to
the City on a monthly, quarterly or annual basis as required
by the City for compliance with SB 1383 and the associated
CalRecycle regulations. Contractor shall provide such reports
in a format in accordance with CalRecycle regulations and
guidelines.
(c) It is the Contractor’s responsibility to understand and comply
with SB 1383 and any associated laws or regulations for the
Services provided hereunder, including CalRecyle as
Enforcement Agency as defined in PRC Section 40130.
3.11 Section 6.1.1 Termination for Cause is hereby deleted and replaced in its entirety
with the following:
“6.1.1 Termination for Cause. City may, by written notice, terminate
this Agreement at any time, with ninety (90) days written notice to Contractor
before the effective date of such termination. “Cause” for the purpose of this
agreement is defined as (i) fraud, (ii) material breach of the provisions of this
agreement, including, but not limited to, failure to perform Services as specified
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herein, or (iii) failure to provide evidence that it is permitted, licensed, or certified
to accept and process Organic Waste in accordance with SB 1383, as required
under Section 2.3.9, by June 30, 2022. If the City exercises the termination rights
under this section, City shall pay Contractor any sums due to the Contractor for
deliveries received by Contractor prior to termination.”
3.12 Section 7.6 Indemnification is hereby deleted and replaced in its entirety with the
following:
“7.6 Indemnification. Contractor agrees that it shall indemnify and hold
harmless City, its officers, officials, employees, franchise haulers, agents, assigns
and any successor or successors to City's interest (“City Indemnitees”), from and
against any and all loss, liability, fines, penalties, claims, demands, actions or suits,
of every kind and description, arising or resulting from: (i) the acts or omissions of
Contractor, its agents, employees or subcontractors related to or in connection with
Contractor's performance of this Agreement, including but not limited to
Contractor’s failure to process, recycle, and divert the maximum feasible amount
of Organic Waste in accordance with the requirements of AB 939, AB 1826, and
SB 1383, and (ii) the failure of Contractor, its agents, employees and/or
subcontractors, to comply in all respects with the provisions and requirements of
this Agreement. Contractor shall, upon demand of City Indemnitees, at Contractor's
sole cost and expense and with an attorney selected by City Indemnitees, defend
City Indemnitees against any and all loss, liability, fines, penalties, claims,
demands, actions or suits, of every kind and description in legal proceedings,
(whether judicial, quasi-judicial, administrative or legislative in nature) brought
against City Indemnitees arising or resulting from those situations described in (i)
and (ii) above.
The foregoing shall not apply to the extent that any costs and damages arise
out of the active negligence or willful misconduct of City, its agents, employees,
officers and contractors. Notwithstanding the provisions of this Section, Contractor
shall not be required to appear or act in any litigation based solely upon the
negligent acts or omissions of City. This Section shall survive the term of this
Agreement.”
4.2 Continuing Effect of Agreement. Except as amended by this Amendment, all
provisions of the Agreement shall remain unchanged and in full force and effect. From and after
the date of this Amendment, whenever the term “Agreement” appears in the Agreement, it shall
mean the Agreement as amended by this Amendment.
4.3 Counterparts. This Amendment may be signed in counterparts, each of which shall
constitute an original.
[Signature page to follow]
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CITY OF AZUSA RECYCLED WOOD PRODUCTS
By: By:
Sergio Gonzalez
City Manager
Name: Chris Kiralla
Attest:
Title: President
Jeffrey Lawrence Cornejo, Jr.
City Clerk
[If Corporation, TWO SIGNATURES,
President OR Vice President AND Secretary,
AND CORPORATE SEAL OF
CONTRACTOR REQUIRED]
Approved as to Form:
Best Best & Krieger LLP By:
Name:
City Attorney
Title:__________________________
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EXHIBIT A
Annual Adjustment Schedule for 2nd Amendment
Year Cost per ton
Adjustment
Percentage Effective Date
1 $79.00 3 1/1/2021-12/31/22
2 $81.37 3 1/1/2022-11/1/2023
Attachment 2
Attachment 3