Enterprise Energy Management Information System
In the summer of 2014, an analyst at the South Bay Environmental Service Center began using McKinstry’s Enterprise Energy Management Information System (EEMIS), a web-based tool, to accesses and analyze the Hermosa Beach’s account data from Southern California Edison.
This tool will be used to track changes in energy use over time, particularly those that follow efficiency and retrofit projects. The EEMIS tool can report monthly, quarterly, and annual consumption data, streamlined for greenhouse gas reporting and other uses.
Hermosa Beach should budget to maintain an account on the McKinstry EEMIS, approximately $900 per year. Additionally, the City should train staff to access the data in order to monitor the progress of energy retrofit projects, assess the City’s opportunities for power purchase agreements, and produce annual reports for use in greenhouse gas emissions inventories. 966
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Municipal Climate Action Indicators
Many intermediate indicators will help the City better understand its progress versus annual greenhouse gas emissions totals or subtotals. For instance, a draft 2012 inventory indicates that commute emissions fell by 37.4% between 2005 and 2012. At first, this may seem to indicate that the City achieved its goal of a 20% reduction in 2005 commute emissions by 2020.
However, the number of full-time equivalent employees (FTE) decreased 33.8% during the 2005 to 2012 period. Commute greenhouse gas emissions per FTE during that same period decreased by only 5.3%. Indicators like metric tonnes of CO2-e per FTE can give a clearer picture of the City’s climate action performance than can aggregate totals or subtotals. Activity data, such as miles traveled by employees or kWh of electricity used by facility, can also elucidate the City’s climate action position in greater detail.
The Local Government Operations Protocol and other guidance for municipal operations recommend several indicators for municipal operations. The following indicators and metrics are applicable to Hermosa Beach’s annual Greenhouse Gas Emissions Inventory:
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Indicators and Metrics for Municipal Climate Action Performance Indicator Metrics What it Means
Vehicle Miles Traveled
(VMT)
Fleet GHG/VMT A measure of GHG intensity of each mile
traveled by the City’s vehicle fleet. As the
City’s fleet procurement policies take
effect, this metric will show progress.
Number of vehicles
(#Vehicles)
VMT/#Vehicles The utilization rate for vehicles as the City considers shared-use fleet
Equipment Operating
Hours (EOH)
Equipment
GHG/EOH
The GHG intensity of equipment
operations
Number of Pieces of
Equipment
(#Equipment)
EOH/#Equipment GHG intensity per unit of equipment
Solid Waste Tonnage
Disposed (Waste)
Waste GHG/Waste The GHG intensity of the waste the
municipal government sends to landfills;
varies based on a landfill’s methane control
practices
Refuse & Recycling
Vehicle Service Hours
(WasteVehHours)
Waste Vehicle
GHG/
WasteVehHours
Indicates the GHG intensity of the
contractor’s refuse and recycling
operations
Kilo-watt Hours (kWh) Electricity
GHG/kWh
The GHG intensity of electricity used by
Hermosa Beach. As Hermosa Beach
begins to blend its energy procurement,
the effects will show in this metric.
Number of FTE
Employees
(#Employees)
Commute
GHG/#Employees
The GHG intensity of employee commutes.
This metric allows the City to monitor the
effectiveness of its commute reduction
program
Volume of Water
Pumped (Water)
Water Pumped
GHG/Water
The GHG intensity of water pumping at the
City’s water pumping lift stations.
Transparency
Transparency is exceedingly important in climate action. Greenhouse gases are invisible, and the activity that leads to their emission is difficult to track. Thus, interested stakeholders must 968
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rely on the City’s recordkeeping of activity data, indicators, and annual emissions in order to assess the City’s climate action progress.
Transparency is even more important when instruments such as RECs or offsets are used to neutralize all or a portion of emissions. Most stakeholders cannot verify the off-site RECs or offsets. When claiming offsets in its annual greenhouse gas inventory, Hermosa Beach should list the serial numbers (or ranges) of offsets retired for the year. When using unbundled RECs to claim renewable energy and reduce the scope 2 emissions, the City should follow guidelines in The Climate Registry’s General Reporting Protocol and “disclose additional activity data such as MWh consumed, purchased, generated or sold as supplemental information.“ Hermosa Beach should also disclose the serial numbers of RECs credited to the City’s electricity consumption.
Carbonn Cities Climate Registry
An emerging global standard for reporting municipal and community climate action provides a venue for Hermosa Beach to register its targets, document its actions, and publish its annual greenhouse gas inventory.
The Carbonn Cities Climate Registry is a new partnership of C40, R20, and other global groups focused on sub-national climate action. The Carbonn registry will help local governments to achieve transparency and accountability for their local climate actions. In reporting its targets, inventories, and actions on Carbonn, Hermosa Beach will be on the same platform as other cities seen as national or global climate action leaders.
In September 2014, ICLEI USA’s Resilient Cities for America Initiative named Carbonn as their official reporting platform. As of October 2014, 465 cities are reporting to Carbonn, including Manhattan Beach and Hawthorne. The two South Bay cities have reported their greenhouse gas emissions targets, performance, and mitigation actions.
Verification & Reporting of Greenhouse Gas Inventories
Some entities have a third-party verify their greenhouse gas inventory prior to reporting the results. The process for verifying greenhouse gas emissions inventories is similar to auditing corporate accounting records, and the intention is to enhance the credibility of the results.
Because the cost to verify emissions can be substantial, few local governments and other entities contract with a third-party verifier before reporting their emissions. Credible verification can be obtained through an ISO 14064 compliant procedure, such as through The Climate Registry.
Hermosa Beach can increase the credibility of its municipal GHG claims by obtaining third-party verification for a greenhouse gas inventory. However, because the cost of verification, Hermosa Beach should only audit certain inventories (for instance, the first year it sets a carbon neutrality 969
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goal). As Hermosa Beach develops new systems to monitor emissions, its annual emissions inventories will become more accurate and precise, reducing the need for third-party verification.
Outreach and Education
Building external awareness of the city’s climate action programs necessitates an effective public outreach and education plan. Effective implementation can be challenging - especially because most greenhouse gas reduction efforts produce intangible results. Unlike some other air pollutants, greenhouse gases are undetectable by human senses at typical concentrations.
Furthermore, greenhouse gas reductions represent the absence of these undetectable gasses.
This creates an environmental communications challenge versus tangible efforts like cleaning water in a river or reducing urban smog.
The City should lead its climate action messaging with the city’s goal to be a climate action leader: that its municipal actions will show both the community and other cities what can be possible. The City should support this message by detailing specific actions that have been implemented, and those that are planned for the future. Visualizations of alternative fuel vehicles or solar photovoltaic panels on City facilities can be the most salient demonstrations of climate actions. When explaining less salient actions, the City should tie examples to actions that that community members can take. For example:
● When explaining specific energy retrofit actions, include information on the various options for residential and commercial energy retrofits, especially property-assessed financing
● Connect the City’s actions to procure zero-emissions electricity with options available to residents and business owners, especially the emerging option of Community Choice power
● make the City’s employee commute program an example of implementing GHG reductions in transportation sector called for in the City’s General Plan update Tying municipal efforts to community action will also strengthen the perception of the City as a climate action leader. As, greenhouse gas emissions from municipal operations make up only about 1% of community-wide emissions, connecting the City’s municipal actions with other emissions reductions will demonstrate the city’s ability to leverage its position as a climate action leader. Outside resources, such as ICLEI’s education and outreach guidance and reports from the Yale Project on Climate Change Communications, will help the City determine effective messaging for its outreach and education program.
Rather than relying on a limited number of City staff to communicate the City’s climate action program, Hermosa Beach should train municipal employees and community members to be climate action ambassadors. By holding regular information sessions that describe the City’s 970
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climate action commitment, existing actions, and future plans, Hermosa Beach can empower City employees and community members to tell the City’s story – and connect it with community-wide actions. This training problem would follow the model popularized by An Inconvenient Truth, the film version of a presentation Al Gore had taught thousands of others to deliver. This model of empowering others to tell climate-related stories has showed great success in connecting individual action with an overwhelming problem.
Information sessions specific to municipal employees could first highlight all municipal actions and then highlight efficiency and greenhouse gas emissions reductions opportunities within an employee’s area of responsibility. The training sessions can also highlight how some highlyvisible municipal programs (such as the employee commute reduction program and bicycles at work) serve as examples for community-wide actions.
The City should publish regularly-updated presentations on the its website, so that ambassadors can obtain and deliver the most up-to-date information, which stakeholders can also access on the Carbonn Cities’ Climate Registry. A version of the climate ambassador information session could also be delivered within the Hermosa Beach Unified School District, combined with materials from California’s Education and the Environment Initiative.
Costs of Municipal Climate Action
After accounting for savings from projects which reduce energy cost or vehicle operating costs, the 30-year estimated cost of recommended municipal carbon neutral programs is $59,130, or $1,971 per year. This low cost is made possible because many of the municipal climate action opportunities available to the City have a payback period of less than 5 years. In addition to the projects listed above, the recommended municipal climate action programs will fund and Employee Commute Coordinator (20% FTE Assistant), a Climate Programs Analyst (25% FTE Analyst), and annual Greenhouse Gas Offsets required to make carbon neutral claims. The recommended plan is cash-flow positive by 2019.
The added cost of a “first-to” position, in which the city would achieve carbon neutrality in 2017 rather than 2020, would be approximately $52,475.
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Municipal GHG Reduction Project Options - Cost Summary
Implementation Measure
Range in Cost per
MTCO2e Recommended
Electricity
Community Choice Aggregation $10 to $18 Yes
Solar Photovoltaic Projects (ASE Solar Solutions
Proposal) -$5 to $20 Yes
GSE Solutions "Project 1" -$125 to -$175 Yes
GSE Solutions "Project 2" -$225 to -$275 Yes
GSE Solutions - Hot Water, HVAC $20 to $35 Yes
Municipal Fleet
Bicycle Parking Yes
Employee Bicycles Yes
Mode Switching Yes
Bicycle Fleet Program (Summary) $0 to -$200 Yes (Bundle) EV Service Equipment Yes
Accelerate Clean Fleet Master Plan Yes
Fuel Switching Yes
EV Fleet Program (Summary) -$50 to -$150 Yes (Bundle)
Employee Commutes
Employee Commute - Carpool Incentive $100 to $200 Yes
Employee Commute - EV Incentive $500 to $1,000 No
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Implementation Measure Cost Assigned 2014 2015 2016 2017 2018 2019 2020 2021 to
2044 Total
Electricity
Community Choice Aggregation Additional Costs of Procurement $0 $18,309 $14,119 $9,193 $4,501 $90,024 $136,147 Solar Photovoltaic Projects
Max upfront buydown of PPA
Rate to Cost-Neutral $30,000 0 0 0 0 0 $30,000
GSE Solutions "Project 1" Outlay and annual savings $89,262 $72,087 $54,912 -$51,524 -$51,524 -$51,524 -$51,524 -
$1,236,576
-
$1,315,673
GSE Solutions "Project 2" Outlay and annual savings $63,029 $126,059 -$23,792 -$23,792 -$23,792 -$23,792 -$571,008 -$477,088 GSE Solutions - Hot Water, HVAC Outlay and annual savings $53,785 $107,571 -$5,056 -$5,056 -121344 $29,900 Municipal Fleet
Bicycle Parking Infrastructure at City Facilities $7,500 $7,500 Employee Bicycles
5 regular bicycles; 5 electricassist bicycles $18,500 $46,250 $64,750 Mode Switching
Vehicle Operating Savings from
Car -> Bike -$2,750 -$2,750 -$2,750 -$2,750 -$2,750 -$66,000 -$79,750 Bicycle Fleet Program (Summary)
EV Service Equipment $50,000 $50,000
Accelerate Clean Fleet Master Plan
Additional Costs for
Procurement (versus BAU) -
$7,500 per vehicle $100,000 $75,000 $75,000 $0 $250,000 Fuel Switching
Operating Savings from $3 to $4
Gasoline -> Electricity mi/year -$3,817 -$9,860 -$18,568 -$23,124 -$21,733 -$521,593 -$598,695 EV Fleet Program (Summary)
Employee Commutes
Carpool Incentive Add’l Costs for $50 Incentive $1,200 $2,400 $3,600 $4,800 $6,000 $144,000 $162,000 EV Incentive Costs for $125 Incentive $7,500 $15,000 $22,500 $30,000 $37,500 $900,000 $1,012,500 Employee Commute Coordinator -
Staffing Additional Costs for Incentive $20,000 $21,000 $22,050 $23,153 $24,310 583443 $693,956 Climate Programs
Staffing - Analyst
Additional Cost of Managing All
Climate Programs $30,000 $31,500 $33,075 $34,729 $36,465 729303.75 $895,073 Total Costs
Total Cost of All Projects $89,262 $142,616 $424,104 $114,068 $158,781 -$34,371 -$33,579 -$923,500 -$151,880 Estimated Advance from Equipment Replacement Fund $142,026 $142,026 $142,026 $426,077 Outlay Before Offsets, Net of Advance -$52,764 $591 $282,079 $114,068 $158,781 -$34,371 -$33,579 -$923,500 -$577,957 CARB (High Quality) GHG Offsets
2021 - 2044 costs assume
further reductions in gross GHG
emissions $0 $0 $0 $0 $0 $0 $20,442 $490,609 $511,051
Total Cost After Offsets -$52,764 $591 $282,079 $114,068 $158,441 -$34,837 -$13,736 -$447,279 $59,130 973
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Begins Duration 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Electricity
Community Choice Aggregation 1Q2015 8
Solar PV Procurement 3Q2015 6
GSE Solutions "Project 1" 1Q2014 12
GSE Solutions "Project 2" 3Q2015 8
GSE Solutions - Hot Water, HVAC 3Q2017 6
Municipal High Efficiency Procurement Policy 1Q2014 ongoing Municipal Fleet
Municipal Facility - Bicycle Parking 4Q2014 1
Bike Barn @ Work 1Q2016 1
Municipal Facility - EV Service Equip. 3Q2015 4
Electric Vehicle Procurement 1Q2016 10
NEV Procurement 2Q2016
Employee Commute
Carpool Incentive 1Q2016 ongoing
EV Incentive 1Q2016 ongoing
Municipal Service Contracts
Amendment with Athens Services
Other
Purchase Offsets 1Q2017 ongoing
Climate & Commute Programs Staffing 1Q2016 ongoing
2016 2019 2020
implementation period
Implementation Measures
Implementation Period 2015 2017 2018
active
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Revenues for Climate Action
Climate Action leaders are often expected to “put their money where their goals are” in order to fund climate action measures and programs. For instance, Boulder’s Climate Action Plan tax generates about $1.8 million per year for the City. Voters renewed that measure in 2012.
One possible source of dedicated, local funds for climate action is Hermosa Beach’s Utility User Tax, which currently generates approximately $2.5 million per year. At current prices for California Emissions Allowances ($11.50), the community’s 134,000 metric tonnes of CO2-e would cost about $1.54 million to offset. This represents an approximately 61% increase above existing rates of 6% on electricity, gas, and water and 5.5% on communications services, bringing the total Utility User Tax would be 10%, comparable to Santa Monica’s. Utility User Tax rates in California range from 1% to 11%, except in Arcata, which levies a 45% tax on residential customers that use greater than 600% of the baseline electricity usage. Currently, it appears that Albany is the only California city looking to use the Utility User Tax to fund climate action.
Hermosa Beach could try an alternate approach to funding aggressive reductions in communitywide emissions. The City could declare its interest in implementing innovative demonstration projects and programs in order to achieve aggressive reductions in community-wide greenhouse gas emissions, provided they are available at no additional expense to the City.
The City’s national-leading commitment to neutralize emissions from government operations could attract attention from companies looking for such an opportunity. However, as more cities dedicate funding to climate action, Hermosa Beach may lose out on some promising demonstration projects to cities that can dedicate some local funding to assisting these companies.
Hermosa Beach will likely find itself in a more competitive position for state and federal grants as a result of its aggressive climate commitment. The state and federal government have a vested interest in the success of leaders, so that they may lead the path for others to follow. If Hermosa Beach maintains a climate leadership position into the future, it will likely find success in attracting government grants and government-sponsored pilot projects. 975
City of Hermosa Beach
GHG Inventory, Forecasting,
Target-Setting Report for an
Energy Efficiency Climate
Action Plan
January 2015
Prepared for:
Prepared by:
3570 Carmel Mountain Road, Suite 300
San Diego, California 92130
Funded by:
Local Government Strategic Plan Strategies Program
Under the auspices of the California Public Utilities Commission 976
977
Contents i
Contents
List of Acronyms and Abbreviations ............................................................................................................ iii Key Findings ................................................................................................................................................. iv Introduction .................................................................................................................................................. 1 GHG Emissions Inventories........................................................................................................................... 2 Emissions Reporting ............................................................................................................................... 2 Emissions Sectors...................................................................................................................... 2 Calculation Methodology .......................................................................................................... 4 Community Emissions ............................................................................................................................ 4 2005—2012 Emissions Summary .............................................................................................. 5 2005, 2007, 2010, and 2012 Inventories................................................................................... 6 Energy........................................................................................................................................ 9 Municipal Emissions............................................................................................................................. 11 2005—2012 Emissions Summary ............................................................................................ 11 2005, 2007, 2010, and 2012 Inventories................................................................................. 13 Energy...................................................................................................................................... 15 Inventory Forecasts..................................................................................................................................... 17 Business-as-Usual Forecasts................................................................................................................. 17 Community Business-as-Usual Forecast.................................................................................. 18 Municipal Business-as-Usual Forecast .................................................................................... 19 Adjusted Business-as-Usual Forecasts ................................................................................................. 19 Community Adjusted Business-as-Usual Forecast .................................................................. 20 Municipal Adjusted Business-as-Usual Forecast..................................................................... 21 Reduction Targets....................................................................................................................................... 22 Recommended Community Targets..................................................................................................... 22 Recommended Municipal Targets........................................................................................................ 23 Conclusions and Next Steps........................................................................................................................ 25 References .................................................................................................................................................. 26 Appendix A: Glossary of Terms
Appendix B: Methodology
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ii Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Tables
Table 1. Key Terms in the Report..................................................................................................................1 Table 2. GHGs Analyzed in the Inventories..................................................................................................2 Table 3. Community-Wide GHG Emissions by Sector for 2005 and 2012 ....................................................6 Table 4. Community GHG Emissions for 2005, 2007, 2010, and 2012 ........................................................7 Table 5. Activity Data used in 2005, 2007, 2010, and 2012 Community Inventories...................................8 Table 6. Demographic Data for 2005, 2007, 2010, and 2012 .......................................................................9 Table 7. Activity Data and GHG Emissions of Energy in 2005 and 2012.......................................................9 Table 8. Municipal GHG Emissions by Sector for 2005 and 2012 ..............................................................12 Table 9. Municipal GHG Emissions for 2005, 2007, 2010, and 2012 ..........................................................13 Table 10. Activity Data used in 2005, 2007, 2010, and 2012 Municipal Inventories..................................14 Table 11. Activity Data and GHG Emissions of Energy in 2005 and 2012...................................................15 Table 12. Growth Factors for 2012, 2020, and 2035 ..................................................................................18 Table 13. Community BAU Forecast ...........................................................................................................18 Table 14. Municipal BAU Forecast..............................................................................................................19 Table 15. Community Adjusted BAU Emissions..........................................................................................21 Table 16. Municipal Adjusted BAU Emissions.............................................................................................21 Table 17. State-Aligned GHG Reduction Targets........................................................................................22 Table 18. State-Aligned Municipal GHG Reduction Targets.......................................................................23 Figures
Figure 1. Community-Wide GHG Emissions by Sector for 2005 and 2012 ...................................................5 Figure 2. Community GHG Emissions for 2005, 2007, 2010, and 2012 ........................................................6 Figure 3. GHG Emissions for Community Electricity and Natural Gas, by Sector.......................................10 Figure 4. Municipal GHG Emissions by Sector for 2005 and 2012..............................................................12 Figure 5. Municipal GHG Emissions for 2005, 2007, 2010, and 2012.........................................................13 Figure 6. GHG Emissions for Municipal Electricity and Natural Gas, by Sector..........................................16 Figure 7. Community Emissions Inventories, Projections, and Targets......................................................23 Figure 8. Municipal Emissions Inventories, Projections, and Targets.........................................................24 979
List of Acronyms and Abbreviations iii
List of Acronyms and Abbreviations
AB Assembly Bill
ADC Alternative Daily Cover
BAU Business-as-Usual
CAFE Corporate Average Fuel Economy
CH4 Methane
CARB California Air Resources Board
CIWMB California Integrated Waste Management Board
CO2 Carbon Dioxide
CO2e Carbon Dioxide Equivalents
EECAP Energy Efficiency Climate Action Plan
EO Executive Order
GHG Greenhouse Gas
GWP Global Warming Potential
IEAP International Local Government GHG Emissions Analysis Protocol IFT Inventories, Long-Term Forecasts, and Target-Setting IPCC Intergovernmental Panel on Climate Change
JWPCP Joint Water Pollution Control Plant
kWh Kilowatt-hour
LCFS Low Carbon Fuel Standard
LGOP Local Government Operations Protocol
MT Metric Tons
NDN Nitrification/denitrification
N2O Nitrous Oxide
RPS Renewable Portfolio Standard
RTP Regional Transportation Plan
SBCCOG South Bay Cities Council of Governments
SCAG Southern California Association of Governments
SCE Southern California Edison
SCG Southern California Gas Company
SEEC Statewide Energy Efficiency Collaborative
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iv Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Key Findings
Community
The City of Hermosa Beach decreased emissions 7.7% from 2005 to 2012, from 137,160 MT CO2e to 126,611 MT CO2e.
On-Road Transportation, Commercial Energy, Solid Waste, Water, and Off-Road Sources sector emissions decreased while Residential Energy and Wastewater sectors increased emissions from 2005 to 2012.
Energy-related emissions account for about 40% of the total community emissions. Under the Adjusted Business-as-Usual (BAU) forecast, emissions will be 111,690 MT CO2e in 2020 and 94,162 MT CO2e in 2035. These emissions levels are 19% lower in 2020 than 2005 and 31% lower than 2005 by 2035.
The City should choose a reduction target that is feasible and ambitious. The State recommends a 15% reduction below 2005 levels by 2020, which would be achieved under the Adjusted BAU scenario.
To continue reductions consistent with the State’s long-term emissions reduction goal of lowering emissions 80% below 1990 levels by 2050, the City would need to reduce emissions in 2035 by 24,210 MT CO2e from an Adjusted BAU forecast. This is a 24% reduction from the Adjusted BAU emissions level and would achieve a 49% reduction from 2005 levels.
Municipal
Municipal emissions have decreased 9% from 2005 to 2012, from 1,501MT CO2e to 1,372 MT CO2e.
Emissions in all sectors decreased between 2005 and 2012 except for the Vehicle Fleet & Equipment and SCE-Owned Outdoor Lights.
Municipal energy use accounts for approximately 1% of all emissions. Under the Adjusted BAU forecast, emissions will be 1,751 MT CO2e in 2020 and 1,872 MT CO2e in 2035. These emissions levels are 17% higher in 2020 than 2005 and 25% higher than 2005 by 2035.
The City would need to reduce emissions by 1,751 MT CO2e from the 2020 Adjusted BAU emissions level to meet its carbon neutrality goal by 2020. 981
Introduction 1
Introduction
The Greenhouse Gas (GHG) Inventories, Long-Term Forecasts, and Target-Setting (IFT) Report contains the first steps toward the City of Hermosa Beach (City) identifying energy-efficiency measures in an Energy Efficiency Climate Action Plan (EECAP). The inventories describe historic energy use and GHG emissions and the forecasts describe projected future emissions in the City. The target-setting section describes GHG reduction recommendations that are consistent with State goals and may assist the City in establishing local GHG reduction targets. The inventories and recommended reduction targets will help the City in the next step of the EECAP, which is to identify energy efficiency and GHG reduction measures that are relevant, meaningful, and feasible.
Specifically, the IFT Report includes (words and phrases in bold are described in Table 1):
Historic GHG emissions in community inventories and municipal inventories for 2005, 2007, 2010, and 2012;
Future GHG emissions for 2020 and 2035 under a business-as-usual forecast scenario and adjusted business-as-usual forecast scenario; and
Recommended GHG reduction targets for 2020 and 2035.
Table 1. Key Terms in the Report1
Term Definition
Adjusted business-as-usual
A GHG forecast scenario that accounts for known policies and regulations that will affect future emissions. Generally, these are state and federal initiatives that will reduce emissions from the business-as-usual scenario.
Baseline year The inventory year used for setting targets and comparing future inventories against.
Business-as-usual
A GHG forecast scenario that assumes no change in policy affecting emissions since the most recent inventory. Changes in emissions are driven primarily through changes in demographics.
Community Inventory GHG emissions that result from the activities by residents and businesses in the city.
An inventory reports emissions that occur over a single calendar year.
Emission factors The GHG-intensity of an activity.
Municipal Inventory
GHG emissions that result from the activities performed as part of the government operations in the city and are a subset of the community inventory. An inventory reports emissions that occur over a single calendar year.
Reduction targets
GHG emissions levels not to be exceeded by a specific date. Local reduction targets are often informed by state recommendations and different targets may be established for different years.
Sector A subset of the emissions inventory classified by a logical grouping such as economic or municipal-specific category.
1 A glossary of terms is also included as Appendix A.
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2 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach GHG Emissions Inventories
GHG emissions inventories are the foundation of planning for future reductions. Establishing an existing inventory of emissions helps to identify and categorize the major sources of emissions currently being produced. In this report, four years of historic inventories are presented to show not only the major sources of emissions in the City, but also how those sources vary over time. For both the community and municipal inventories, the years 2005, 2007, 2010, and 2012 are presented. The 2005 inventory (for both community and municipal operations) is considered the baseline year. A baseline year is established as a starting point against which other inventories may be compared and targets may be set, and is generally the earliest year with a full emissions inventory. The most recent inventory (2012) has the most relevant data for planning purposes, while the interim years (2007 and 2010) provide context and may help identify trends or anomalies.
Emissions Reporting
The primary GHGs from the community and municipal operations are from carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O). Because each of these gases has a different capacity for trapping heat in the atmosphere, known as its global warming potential (GWP), a method of reporting is needed to be able to compare gases in the same terms. As a result, emissions are reported in carbon dioxide equivalents, or CO2e, with each GHG normalized and calculated relative to CO2 using its GWP.
Table 2 describes the GHGs analyzed in this report, their symbol, GWP, and primary community sources of emissions. While N2O has the highest GWP and may be considered the most dangerous on a permolecule basis, CO2 is by far the most prevalent, accounting for 88% of statewide emissions in 2005 (CARB 2011).
Table 2. GHGs Analyzed in the Inventories
Greenhouse Gas Symbol Global Warming
Potential Primary Community Sources
Carbon Dioxide CO2 1 Fossil fuel combustion
Methane CH4 25
Fossil fuel combustion, landfills,
wastewater treatment
Nitrous Oxide N2O 298 Fossil fuel combustion, wastewater treatment
Source: IPCC Fourth Assessment Report, 2007.
Emissions Sectors
The inventories identify the major sources of GHGs emissions caused by activities in sectors that are specific to community or municipal activities. A sector is a subset of the economy, society, or municipal operations whose components share similar characteristics. An emissions sector can also contain subsectors that provide more specificity about the source of emissions (e.g., natural gas and electricity are subsectors of the energy sector).
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GHG Emissions Inventories 3
As mentioned above, inventories were completed for the community and municipal operations.
Because the majority of municipal activities occur within the boundaries of the City and therefore contribute to the overall emissions of the community, both inventories are interconnected, with the municipal inventory considered a subset of the community inventory. As a result, municipal emissions are included in numbers reported for the community. The municipal inventory is separated to highlight areas of emissions that the City has more direct control over and to identify where they can begin to set examples for the community on how reduction strategies can be implemented.
The following subsections describe the sectors used in the community and municipal inventories. It is important to note that both inventories capture similar types of information but may be categorized differently. For example, energy is reported in both the community and municipal inventory, but community level energy emissions are reported as “Residential” and “Non-residential”, whereas municipal energy emissions are more logically reported as “Buildings & Facilities” and “Streetlights”.2 Community Sectors
The community inventory is categorized by sectors based on the sector’s ability to be affected through regional and local programs, incentives, zoning, and other policies. The City’s community inventories were divided into the following sectors:
Energy in the Community Inventory is further broken down into two sectors:
o Commercial/Industrial Energy includes emissions from electricity and natural gas consumption in non-residential buildings and facilities (including outdoor lighting) in the City.
o Residential Energy includes emissions from electricity and natural gas consumption in residential buildings in the City.
On-road Transportation includes emissions from vehicle fuel use in trips wholly within the City (in-boundary) and trips that either originate or end in the City (cross-boundary). Emissions from in-boundary trips are fully accounted for in the inventory, whereas only half of the emissions from cross-boundary trips are accounted for. Trips that pass-through the City, (such as on State Route 1) are not accounted for in the inventory because the City has little or no control of these emissions. As a result, this methodology reflects only trips or parts of trips within City borders that the City has the ability to affect.
Solid Waste includes emissions from waste that is generated in the community and sent to landfills.
Water includes emissions from the electricity used to source, treat, and deliver imported water in the community that is not accounted for in the community utility data. Wastewater includes emissions from treating wastewater generated in the community.
2 Streetlights are further categorized as SCE-owned or City-owned as described later. 984
4 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Off-road Sources include emissions from operating equipment for construction, commercial, light industrial and agricultural activities; lawn and garden equipment; and recreational vehicles such as all-terrain vehicles.
Municipal Sectors
Sources of municipal emissions are divided into the following sectors:
Energy in the municipal inventory is further broken down into four sectors:
o Buildings and Facilities includes energy use by the government, including electricity and natural gas.
o SCE-owned Outdoor Lighting includes energy for streetlights on fixtures owned by SCE and outdoor lighting.
o City-owned Outdoor Lighting includes energy for streetlights on fixtures owned by the City, traffic control signals, and outdoor lighting.
o Water Pumping & Irrigation includes energy for water pumping and irrigation. Vehicle Fleet & Equipment includes emissions from vehicles owned or operated by the government or contracted by the City for services such as street cleaning. It also includes equipment, such as emergency generators.
Employee Commute includes emissions from fuel use in vehicle trips by municipal employees commuting to and from work in the City.
Solid Waste includes emissions from waste generated by municipal employees or at municipally owned facilities.
Calculation Methodology
GHG emissions were calculated using activity data available (e.g., kilowatt-hours of electricity) for each sector and protocols for converting activity data to emissions output using relevant emission factors.
Emission factors relate the activity to GHG emissions and may vary by year (e.g., for electricity) and often are not affected by local actions or behavior, unlike activity data. The U.S. Community Protocol for Accounting and Reporting Greenhouse Gas Emissions (ICLEI 2012) and the Local Government Operations Protocol for the Quantification and Reporting of GHG Emissions Inventories (LGOP) (CARB 2010) were the primary protocols used for developing the community and municipal inventories, respectively.
Activity data are reported in the community and municipal emissions subsections below, and emission factors are detailed in Appendix B.
Community Emissions
The community inventory includes the GHG emissions that result from activities within City boundaries.
This section presents the findings of the community inventory for four years: 2005 (baseline year), 2007, 2010, and 2012. It also provides more specific detail and findings on the energy sectors, which will form the basis of the reduction targets and reduction measures the City identifies in the EECAP. 985
GHG Emissions Inventories 5
2005—2012 Emissions Summary
The City of Hermosa Beach reduced emissions 7.7% from 2005 to 2012, from 137,160 MT CO2e to 126,611 MT CO2e.
On-Road Transportation, Commercial Energy, Solid Waste, Water, and Off-Road Sources sector emissions decreased while Residential Energy and Wastewater sectors increased emissions from 2005 to 2012.
As shown in Figure 1 and Table 3, the On-Road Transportation sector was the largest contributor to emissions in both 2005 (54%) and 2012 (54%) by producing 73,567 MT CO2e in 2005 and 68,235 MT CO2e in 2012. This change represents a 7.2% decrease in emissions from 2005 to 2012. Residential energy is the second-largest contributor to emissions, accounting for 23% of emissions in 2005 and 27% in 2012. This change represents a 4.7% increase from 2005 to 2012, from 32,293 MT CO2e to 33,808 MT CO2e. The proportion of emissions from the Commercial sector decreased 12.7% from 2005 to 2012, from 20,280 MT CO2e to 17,830 MT CO2e. Solid waste comprised 4% of the total (6,015 MT CO2e) in 2005, but accounted for 3% of the total (3,334 MT CO2e) in 2012. Water, Wastewater, and Off-road sources made up the remaining emissions in each year. Water and Off-Road Transportation emissions declined from 2005 to 2012; however, Wastewater sources increased 13.5% (from 52 to 59 MT CO2e) in the same period.
Figure 1. Community-Wide GHG Emissions by Sector for 2005 and 2012 54%
15%
23%
4% 3% <1%
1%
2005
54%
14%
27%
3%
2%
<1% <1%
2012
On-Road Transportation Commercial Energy
Residential Energy Solid Waste
Water Wastewater
Off-Road Sources
986
6 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Table 3. Community-Wide GHG Emissions by Sector for 2005 and 2012 Sector 2005
(MT CO2e)
2012
(MT CO2e)
% Change
2005 to 2012
On-Road Transportation 73,567 68,235 -7.2%
Residential Energy 32,293 33,808 4.7%
Commercial Energy 20,280 17,830 -12.1%
Solid Waste 6,015 3,334 -44.6%
Water 4,065 2,600 -36.0%
Off-Road Sources 888 745 -16.1%
Wastewater 52 59 13.5%
Total 137,160 126,611 -7.7%
2005, 2007, 2010, and 2012 Inventories
Figure 2 and Table 4 show the GHG emissions by sector for all inventory years. Emissions are variable among the inventory years, and may reflect changes in the economy, weather, and programs implemented to reduce emissions. The table also lists the percentage of each sector relative to total emissions and shows that the proportion of each sector does not vary greatly by year.
Figure 2. Community GHG Emissions for 2005, 2007, 2010, and 2012 -
20,000
40,000
60,000
80,000
100,000
120,000
140,000
2005 2007 2010 2012
MT CO2e
Off-Road Sources
Wastewater
Water
Solid Waste
Residential Energy
Commercial Energy
On-Road
Transportation
987
GHG Emissions Inventories 7
Table 4. Community GHG Emissions for 2005, 2007, 2010, and 2012 Sector 2005
(MT CO2e)
% of
Total
2007
(MT CO2e)
% of
Total
2010
(MT CO2e)
% of
Total
2012
(MT CO2e)
% of
Total
On-road
Transportation 73,567 54% 71,863 54% 70,277 55% 68,235 54% Residential Energy 32,293 24% 31,964 24% 32,700 26% 33,808 27% Commercial Energy 20,280 15% 19,792 15% 18,372 14% 17,830 14% Solid Waste 6,015 4% 4,584 3% 3,510 3% 3,334 3%
Water 4,065 3% 3,942 3% 2,552 2% 2,600 2%
Off-Road Sources 888 1% 588 <1% 419 <1% 745 1%
Wastewater 52 <1% 35 <1% 59 <1% 59 <1%
Total 137,160 132,768 127,889 126,611
% Change from
2005 -- -3.2% -6.8% -7.7%
Activity data can provide more insight into behavioral changes in the community, as these data are not affected by emission factors. Table 5 summarizes activity data for each sector and subsector. The activity data show that residential electricity, natural gas (residential and non-residential), wastewater, industrial off-road sources, and light commercial off-road sources increased from 2005 to 2012, while on-road transportation, commercial electricity, solid waste, water, recycled water, and off-road sources (lawn & garden, construction, recreation, and agriculture) decreased from 2005 to 2012. Wastewater and Off-road emissions use indicator data to attribute county-level emissions to the City and the indicator data are also shown in Table 5.
Demographic data also help provide perspective to changes in emissions over time. Table 6 shows the number of households, jobs, population, and service population (jobs + population) for each inventory year. Energy emissions in particular often reflect trends in demographic data. For example, the slight increase in population and households between 2005 and 2012 may explain some of the increase in Residential Energy emissions.
988
8 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Table 5. Activity Data used in 2005, 2007, 2010, and 2012 Community Inventories Sector 2005 2007 2010 2012 % Change
2005 to 2012
On-road Transportation
Total Vehicle Miles Traveled 140,684,101 138,727,165 139,197,605 138,350,955 -1.7% Residential Energy
Electricity (kWh) 47,843,215 49,976,195 49,906,427 49,778,450 4.0% Natural Gas (therms) 3,339,783 3,305,637 3,448,010 3,364,392 0.7% Commercial Energy
Electricity (kWh) 51,741,467 52,130,513 48,545,739 41,191,832 -20.4% Natural Gas (therms) 857,687 900,024 827,116 875,986 2.1% Solid Waste
Landfilled (tons) 24,578 18,490 14,230 13,511 -45.0%
ADC (tons) 1246 180 50 48 -80.7%
Water and Wastewater
Water (MG) 760.2 760.2 687.7 700.3 -7.9%
Recycled Water (MG) 30.9 30.9 26.4 27.7 -10.3%
Wastewater (City portion of
countywide residents) 0.20% 0.20% 0.20% 0.20% 0.5%
Off-road sources2(% of LA County emissions attributed to the City) Lawn & Garden (% Households) 0.30% 0.29% 0.29% 0.29% -1.7% Construction (% Building
permits) 0.32% 0.20% 0.13% 0.24% -25.7%
Industrial (% Manufacturing
Jobs) 0.03% 0.03% 0.03% 0.03% 4.3%
Light Commercial (% Other
jobs) 0.17% 0.17% 0.17% 0.18% 5.9%
Recreation (Population
weighted by income) 0.36% 0.36% 0.35% 0.34% -6.3%
Agriculture (% Ag. Jobs) 0.10% 0.11% 0.06% 0.08% -17.6% 1 ADC is Alternative Daily Cover, which is green waste (grass, leaves, and branches) that is used to cover landfill emissions. They are reported separately by CalRecycle and therefore shown separately here. 2 Off-road emissions are available at the county level through CARB’s OFFROAD model. Emissions attributable to the City were derived using indicator data related to the off-road source. For example, the percentage of households in the City compared to the county was used to attribute the same percentage of lawn & garden equipment emissions to the City. See Appendix B for more methodology details.
989
GHG Emissions Inventories 9
Table 6. Demographic Data for 2005, 2007, 2010, and 2012 2005 2007 2010 2012 % Change
2005-2012
Service Population (Population + Jobs) 26,199 26,421 26,173 26,419 0.8% Population 19,340 19,174 19,477 19,574 1.2%
Households 9,507 9,457 9,550 9,548 0.4%
Jobs 6,859 7,247 6,696 6,845 -0.2%
Energy
The EECAP ultimately will focus on increasing energy efficiency and reducing GHG gases from energy; therefore, it is important for the City to understand its current energy consumption to make informed decisions for reducing energy-related emissions. Energy use consists of electricity and natural gas.
Emissions from Commercial/Industrial and Residential energy use account for about 40% of the total community emissions in 2005 and 2012. Table 7 shows the breakdown in activity (kWh or therms) and GHG emissions by sector and energy source.
Table 7. Activity Data and GHG Emissions of Energy in 2005 and 2012 Sector
2005 2012
% Change in
Activity
2005-2012
% Change in
Emissions
2005-2012
Activity
(kWh or
therms)
Emissions
(MT CO2e)
Activity
(kWh or
therms)
Emissions
(MT CO2e)
Commercial/ Industrial
Electricity 51,741,467 15,719 41,191,832 13,172 -20.4% -16.2% Natural Gas 857,687 4,561 875,986 4,658 2.1% 2.1%
Residential
Electricity 47,843,215 14,534 49,778,450 15,918 4.0% 9.5% Natural Gas 3,339,783 17,759 3,364,392 17,890 0.7% 0.7% Total (MT CO2e) 52,573 51,638 -1.8%
990
10 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Commercial electricity use decreased 20.4%
between 2005 and 2012; emissions decreased by
more than 16%. Residential electricity use
increased by about 4% but emissions increased by
more than 9%. These changes are due to the
emission factor used for electricity for 2005 and
2012. Emission factors convert activity data into
GHG emissions and electricity emission factors
vary annually based on how electricity is
generated by the electricity provider (i.e., the
amount of renewables, natural gas, coal, etc.). In
2005, Southern California Edison (SCE) generated
electricity that resulted in an emission factor of 669.7 CO2e. In 2012, SCE’s electricity generation resulted in an emission factor of 705.0 CO2e. Therefore, a kilowatt-hour of electricity used in 2012 emitted more GHGs than a kilowatt-hour of electricity used in 2005. Future emissions could increase or decrease based on changes to SCE’s emission factors, which the City cannot directly affect, or through changes in usage, which can be affected by changes in local policy, outreach, or incentive programs.
Unlike electricity, the emission factor for natural gas is estimated on a national basis and remains fairly constant over time. Therefore, the natural gas GHG emissions follow the same trend as usage. In Hermosa Beach, Commercial/Industrial natural gas consumption (therms) decreased by 2.1% from 2005 to 2012; therefore the emissions also declined 2.1%. Residential natural gas therms used and GHG emissions declined nearly 0.7% from 2005 to 2012. Figure 3 shows the trend in electricity and natural gas emissions from 2005 to 2012 for the Commercial/Industrial and Residential sectors.
Electricity-Related Emissions
All emissions are comprised of activity data and
the emission factor, or GHG-intensity, of that
activity. For electricity, the activity data are the
kilowatt-hours (kWh) used by the city’s residents
and businesses and the energy intensity is based
on the sources of power that Southern California
Edison uses to generate electricity. Changes to
either component can affect the GHG emissions
from electricity in the City.
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Electricity Natural Gas Electricity Natural Gas
Commercial Residential
MT CO2e
2005 2012
Figure 3. GHG Emissions for Community Electricity and Natural Gas, by Sector 991
GHG Emissions Inventories 11
Municipal Emissions
As described earlier, a municipal GHG emissions inventory is a subset of the community inventory. The municipal inventory includes emissions from activities conducted as part of government operations in the City. While emissions from government operations are normally a fraction of the overall community emissions, the City has the most direct control over municipal emissions and the City can demonstrate leadership in the community by adopting and implementing energy and GHG reduction strategies. This section presents the findings of the municipal inventory for 2005 (the baseline year), 2007, 2010, and 2012. It also provides more specific detail and findings on the energy sectors, which will form the basis of the reduction measures the City identifies in the EECAP. 2005—2012 Emissions Summary
Municipal emissions have decreased nearly 9% from 2005 to 2012, from 1,501 MT CO2e to 1,372 MT CO2e.
The sector with the greatest reductions was Employee Commute, which decreased 130 MT CO2e between 2005 and 2012.
Emissions from municipal operations account for 1% of community emissions.
The City’s Employee Commute is the sector with the largest percentage of emissions in 2005 (23%) and decreased to the third-largest contributor in 2012 (16%) as emissions from this sector decreased 37% over the period (Figure 4). The second largest-emitting sector for 2005 and 2012 was Buildings & Facilities, accounting for 20% of emissions in 2005 and 22% of emissions in 2012 (increasing from 301 MT CO2e to 305 MT CO2e). The Fleet & Equipment sector contributed 227 MT CO2e (15% of total emissions) in 2005 and increased by 44% 2012 (to 328 MT CO2e, or 24% of total emissions), making this sector the largest emissions sector in 2012. Emissions from Solid Waste declined 25% over the period (from 215 to 162 MT CO2e). Emissions from SCE-owned Outdoor Lights increased 4% from 2005 to 2012, while City-owned Outdoor Lights emissions decreased by 19% from 2005 to 2012. The smallest sector, Water Pumping & Irrigation, decreased emissions from 5 MT CO2e in 2005 to less than 1 MT CO2e between 2005 and 2012. The 2005 and 2012 emissions and changes are detailed in Table 8. 992
12 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Table 8. Municipal GHG Emissions by Sector for 2005 and 2012 Sector 2005
(MT CO2e)
2012
(MT CO2e)
% Change
2005 to 2012
Employee Commute 348 218 -37%
Buildings & Facilities 301 305 1%
Outdoor Lights—City-Owned 264 213 -19%
Fleet & Equipment 227 328 44%
Solid Waste 215 162 -25%
Outdoor Lights—SCE-Owned 141 146 4%
Water Pumping & Irrigation 5.0 0.6 -87%
Total 1,501 1,372 -8.6%
Note: City-Owned Outdoor Lights includes streetlights, traffic signals, and area lighting. SCE-Owned Outdoor Lights includes streetlights and outdoor lighting.
20%
15%
23%
14%
10%
18%
<1%
2005
22%
24%
16%
12%
11%
15% <1%
Buildings & Facilities Fleet & Equipment
Employee Commute Solid Waste
Outdoor Lights—SCE-Owned Outdoor Lights—City-Owned
Water Pumping & Irrigation
2012
Figure 4. Municipal GHG Emissions by Sector for 2005 and 2012 993
GHG Emissions Inventories 13
2005, 2007, 2010, and 2012 Inventories
Figure 5 and Table 9 show the municipal GHG emissions by sector for all four inventory years. Emissions peaked in 2007 (1,541 MT CO2e) and were the lowest in 2010 (1,340 MT CO2e).
Figure 5. Municipal GHG Emissions for 2005, 2007, 2010, and 2012 Table 9. Municipal GHG Emissions for 2005, 2007, 2010, and 2012 Sector
2005
(MT
CO2e)
% of
Total
2007
(MT
CO2e)
% of
Total
2010
(MT
CO2e)
% of
Total
2012
(MT
CO2e)
% of
Total
Employee Commute 348 23% 333 22% 274 20% 218 16%
Buildings & Facilities 301 20% 333 22% 276 21% 305 22%
Outdoor Lights—CityOwned 264 18% 258 17% 185 14% 213 16% Fleet & Equipment 227 15% 270 18% 320 24% 328 24%
Solid Waste 215 14% 213 14% 162 12% 162 12%
Outdoor lights—SCEOwned 141 9% 134 9% 122 9% 146 11%
Water Pumping &
Irrigation 5.0 0% 0.49 0% 0.55 0% 0.64 0%
Total 1,501 1,541 1,340 1,372
0 200
400
600
800
1,000
1,200
1,400
1,600
2005 2007 2010 2012
MT CO2e
Water Pumping & Irrigation
Outdoor Lights—SCE-Owned
Solid Waste
Fleet & Equipment
Outdoor Lights—City-Owned
Buildings & Facilities
Employee Commute
994
14 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Table 10 summarizes activity data for each sector and subsector. City-Owned Fleet showed significant increases in compressed natural gas (CNG) and diesel fuel used, which reflects the increase in Fleet & Equipment emissions. The significant decrease in Employee Commute reflects the change in City employees from 2005 to 2012, which decreased 34%.
Table 10. Activity Data used in 2005, 2007, 2010, and 2012 Municipal Inventories Sector 2005 2007 2010 2012 % Change
2005 to 2012
Buildings & Facilities
Electricity (kWh) 895,746 932,207 883,858 915,327 2%
Natural Gas (therms)15,383 11,977 4,621 2,542 -53%
Outdoor Lights
City-Owned Electricity (kWh) 868,589 895,841 643,360 664,636 -23% SCE-Owned Electricity (kWh) 464,752 466,608 424,794 455,210 -2% Fleet & Equipment
City-Owned Fleet
Gasoline (gallons) 12,665 17,406 20,481 20,341 61%
Diesel (gallons) 2,584 2,584 4,121 5,502 113%
LPG (gallons) - - 36 23 NA
CNG (standard cubic feet) 13,377 13,377 81,114 98,658 638% Contracted2
Gasoline (gallons) 3,640 3,640 3,640 3,640 0%
Diesel (gallons) 2,057 2,057 2,057 2,057 0%
LPG (gallons) 5,127 5,127 5,127 5,127 0%
Employee Commute
Gasoline (gallons) 794,170 760,056 634,526 506,797 -36% Diesel (gallons) 26,784 35,852 25,110 20,055 -25%
# Full Time Employee
Equivalents 186 184 154 123 -34%
Solid Waste2
Generated Waste (tons) 666 660 660 660 -1%
Water Pumping & Irrigation
Electricity (kWh) 17,033 1,712 1,907 1,999 -88%
1 Contracted fuel use was not available for 2010 and 2012. Data from 2007 were used. 2 Solid Waste data for 2010 and 2012 assumed 2007 values. 995
GHG Emissions Inventories 15
Energy
As with the community emissions, the EECAP will focus on increasing energy efficiency and reducing GHG gases from energy within municipal operations. The City has more direct control over energyrelated emissions than other sectors, such as employee commute. Municipal energy use includes Buildings & Facilities, SCE-owned Outdoor Lighting, City-owned Outdoor Lighting, and Water Pumping & Irrigation. Energy accounted for 47% of total emissions in 2005 and 48% in 2012. While both electricity and natural gas are used for Building & Facilities, Outdoor Lighting and Water Pumping & Irrigation only use electricity. Emissions from energy declined 7% from 2005 to 2012; electricity-based emissions declined almost 5% and natural gas related emissions decreased 52% (Table 11). As with community energy, municipal emissions use variable electricity emission factors and constant natural gas emission factors.
Table 11. Activity Data and GHG Emissions of Energy in 2005 and 2012 Sector
2005 2012 % Change
in Activity
2005-2012
% Change in
Emissions
2005-2012
Activity (kWh
or Therms)
Emissions
(MT CO2e) Activity (kWh) Emissions (MT CO2e)
B&F (kWh) 895,746 272 915,327 291 2% 7%
Outdoor Lighting—
City (kWh) 868,589 264 664,636 213 -23% -19%
Outdoor Lighting—
SCE (kWh) 464,752 141 455,210 146 -2% 4%
Water Pumping &
Irrigation (kWh) 17,033 5 1,999 0.64 -88% -87%
B&F (therms) 5,383 29 2,542 14 -53% -52%
Total 2,251,503 711 2,039,714 665 -9% -7%
Note: B&F is Buildings and Facilities.
996
16 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Figure 6 shows the trend in electricity and natural gas emissions from 2005 to 2012 for the municipal energy sectors.
Note: B&F is Buildings and Facilities.
Figure 6. GHG Emissions for Municipal Electricity and Natural Gas, by Sector -
50 100
150
200
250
300
B&F (Electricity) Outdoor Lighting—
City
Outdoor Lighting—
SCE
B&F (Nat Gas) Water Pumping &
Irrigation
MT CO2e
2005 2012
997
Inventory Forecasts 17
Inventory Forecasts
GHG emissions are forecast using two scenarios: a Business-as-Usual (BAU) and an Adjusted BAU scenario. The BAU scenario describes emissions based on projected growth in population and employment and does not consider policies that will reduce emissions in the future (that is, the policies in place in 2012 are assumed to remain constant through 2035). The Adjusted BAU scenario describes emissions based on projected growth and considers policies that will achieve GHG reductions in the future. Policies, described in detail below, include State-adopted or approved legislation that will affect future emissions. By evaluating the two scenarios, the City can see the effect that existing policies may have on future emissions and be better able to determine how local measures can provide additional reductions. Two future years are forecasted for each scenario: 2020 and 2035. The 2020 forecast year is consistent with the goals identified in Assembly Bill (AB) 32, which identifies a statewide GHG reduction target by 2020. The 2035 forecast year will allow the City to develop long-term strategies to continue GHG reductions beyond 2020.
Business-as-Usual Forecasts
The BAU forecasts estimate future emissions using current (2012) consumption patterns and emission factors with the anticipated growth in the City. Anticipated growth is estimated using data from regional planning scenarios developed by the Southern California Association of Governments (SCAG), the City, and other relevant sources (Table 12). The most relevant growth factors are used to project emissions by sector. For example, future Residential Energy emissions were developed using current energy use per household (from the 2012 inventory) and the anticipated number of households in the future. Actual energy use is a function of several variables, not only the number of households; however, this approach is supported by current protocols and best practices within the State and provides a consistent approach to forecasting. Compound annual growth rates were developed using the growth projections from 2012 to 2020 and from 2021 to 2035, as shown Table 12.
In general, the City is expecting modest growth to 2020 and 2035 as population and jobs are expected to increase. SCAG is projecting fewer vehicle miles traveled from 2012 to 2020 despite population and job growth, but that trend is reversed after 2020, when vehicle miles traveled will again increase. Due to the relatively low growth, the City does not anticipate major staffing changes in its government services. 998
18 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Table 12. Growth Factors for 2012, 2020, and 2035
Sector Demographic
Indicator 2012 2020 2035 2012-2020 CAGR1
2020-2035
CAGR1
Transportation Vehicle Miles
Traveled 138,350,955 126,238,272 129,742,671 -1.14% 0.18% Solid Waste,
Water,
Wastewater, OffRoad Sources
Service Population
(Population +
Jobs)
26,419 26,900 27,400 0.23% 0.12%
NA2Population 19,574 19,600 19,700 0.02% 0.03%
Residential
Energy Households 9,548 9,600 9,600 0.07% 0.00%
Commercial/
Industrial Energy Jobs 6,845 7,300 7,700 0.81% 0.36%
Municipal Jobs Municipal
Emissions3
106 F/T
34 P/T
137 F/T
60 P/T
146 F/T
65 P/T 3.9% 0.45%
Source: SCAG 2012.
F/T: Full-time employees; P/T: Part-time employees
1 Compound annual growth rate.
2 Not Applicable. Population data are shown for informational purposes but are not used for forecasting any sector. 3 The number of jobs in the City is used as an indicator for all municipal operation emissions.
Community Business-as-Usual Forecast
BAU community emissions are expected to decrease 8.1% from baseline levels by 2020 and
5.8% by 2035.
The City’s BAU emissions in 2020 are estimated to be 125,982 MT CO2e, or an 8.1% decrease from baseline (2005) emissions. By 2035, emissions are estimated to decrease 5.8% from the baseline level to 129,157 MT CO2e (Table 13).
Table 13. Community BAU Forecast
Sector 2005
(MT CO2e)
2012
(MT CO2e)
2020
(MT CO2e)
% Change
2012-2020
2035
(MT CO2e)
%Change
2012-2035
On-Road Transportation 73,567 68,235 66,150 -3% 67,986 0% Residential Energy 32,293 33,808 33,969 0% 33,969 0%
Commercial Energy 20,280 17,830 18,930 6% 19,967 12%
Solid Waste 6,015 3,334 3,391 2% 3,454 4%
Water 4,065 2,600 2,645 2% 2,694 4%
Off-Road Sources 888 745 837 12% 1,026 38%
Wastewater 52 59 60 2% 61 3%
Total 137,160 126,611 125,982 0% 129,157 2%
% Change from 2005 -7.7% -8.1% -5.8%
999
Inventory Forecasts 19
Municipal Business-as-Usual Forecast
BAU municipal emissions are expected to be 20% higher than baseline levels in 2020 and 28% higher than baseline levels in 2035.
The City is anticipating significant growth in city employees by 2020 or 2035 from current (2012) levels— 36% more full-time equivalent employees in 2020 compared with 2012, and 45% more employees in 2035 compared with 2012. Therefore, the activity data for municipal services is also expected to increase relative to 2012.
Table 14. Municipal BAU Forecast
2005
(MT CO2e)
2012
(MT CO2e)
2020
(MT CO2e)
% Change
2012-2020
2035
(MT CO2e)
% Change
2012-2035
Buildings & Facilities 301 305 400 31% 428 40%
Employee Commute 348 218 286 31% 306 40%
Solid Waste 215 162 213 31% 227 40%
Outdoor Lighting 405 359 471 31% 504 40%
Vehicle Fleet 227 328 430 31% 460 40%
Water Pumping & Irrigation 5.0 0.64 1 56% 1 56%
Total 1,501 1372 1801 31% 1926 40%
% Change from 2005 -9% 20% 28%
Adjusted Business-as-Usual Forecasts
State legislation has been approved and/or adopted that will reduce GHG emissions in the City. These policies do not require additional local action, but should be accounted for in the City’s emissions forecasts to provide a more accurate picture of future emissions and the level of local action needed to reduce emissions to levels consistent with State recommendations. This forecast is called the Adjusted BAU forecast. The measures are described briefly below.
Low Carbon Fuel Standard. The Low Carbon Fuel Standard (LCFS) was developed as a result of Executive Order S-1-07, which mandates that the carbon intensity of transportation fuels in California are lowered 10% by 2020. The State is currently implementing this standard, which is being phased in and will achieve full implementation in 2020.
Assembly Bill (AB) 1493 and Advanced Clean Cars. AB 1493 directed CARB to adopt GHG standards for motor vehicles through model year 2015 that would result in reductions in GHG emissions by up to 25% in 2030. In addition, the State’s Advanced Clean Cars program includes additional components that will further reduce GHG emissions statewide, including more stringent fuel efficiency standards for model years 2017—2025 and support infrastructure for the commercialization of zero-emission vehicles. CARB 1000
20 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach anticipates additional GHG reductions of 3% by 2020, 27% by 2035, and 33% by 20503. These are also known as “Pavley I” and “Pavley II” regulations.
California Building Code Title 24. California’s building efficiency standards are updated regularly to incorporate new energy efficiency technologies. The code was most recently updated in 2013 and went into effect for new development in 2014. For projects implemented after January 1, 2014, the California Energy Commission estimates that the 2013 Title 24 energy efficiency standards will reduce consumption by an estimated 25% for residential buildings and 30% for commercial buildings, relative to the 2008 standards. These percentage savings relate to heating, cooling, lighting, and water heating only; therefore, these percentage savings were applied to the estimated percentage of energy use by Title 24.
Renewable Portfolio Standard. The Renewable Portfolio Standard (RPS) requires energy providers to derive 33% of their electricity from qualified renewable sources. This is anticipated to lower emission factors (i.e., fewer GHG emissions per kilowatt-hour used) statewide. Therefore, reductions from RPS are taken for energy embedded in water, which uses energy sources throughout the state to move from the water source area to the City. However, no credit was taken for this measure for the SCE service region (i.e., for residential and commercial electricity used in the City supplied by SCE). Analysis of SCE’s current portfolio and the sources needed to replace the nuclear generation that has been taken out of service has revealed great uncertainty in how SCE’s emission factors may change over time. Therefore, the emission factor used in the 2012 inventory and the BAU forecast was also used in the Adjusted BAU forecast.
Senate Bill X7-7. California’s SB X7-7 requires water suppliers to reduce urban per capita water consumption 20% from a baseline level by 2020. The City is supplied by California Water Service and the reductions in GHG emissions from SB X7-7 were calculated by applying the reduction goals established by California Water Service to the City’s population in 2020 and 2035.
Community Adjusted Business-as-Usual Forecast
Emissions are expected to decrease under the Adjusted BAU forecast and will be 19% lower in 2020 than 2005 and 31% lower than 2005 levels by 2035.
The City’s Adjusted BAU emissions in 2020 are estimated to be 111,690 MT CO2e in 2020 and 94,162 MT CO2e in 2035 (Table 15). This change represents an 18.6% reduction from 2005 by 2020 and 31% reduction by 2035. Due to the stringent State vehicle standards, the emissions from the Transportation sector are expected to decrease significantly over time, while the proportion of emissions from Residential and Non-residential Energy will increase. Emissions from Solid Waste are expected to increase while emissions from Water and Wastewater will remain steady over time, but all account for less than 10% of total emissions.
3 CARB Advanced Clean Cars Summary Sheet
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Inventory Forecasts 21
Table 15. Community Adjusted BAU Emissions
Sector 2005
(MT CO2e)
2012
(MT CO2e)
2020
(MT CO2e)
2020 % of
Total
2035
(MT CO2e)
2035 % of
Total
Transportation &
Mobile Sources 74,455 68,980 53,857 49% 35,533 38%
Non-Residential Energy 20,280 17,830 18,742 17% 19,564 21% Residential Energy 32,293 33,808 33,953 30% 33,953 36%
Solid Waste 6,015 3,334 3,391 3% 3,454 4%
Water & Wastewater 4,117 2,659 1,747 2% 1,658 2%
Total 137,160 126,611 111,690 100% 94,162 100%
% Change from 2005 -8% -19% -31%
Municipal Adjusted Business-as-Usual Forecast
Emissions are expected to increase under the Adjusted BAU forecast and are estimated to be 17% higher in 2020 and 25% higher in 2035 relative to 2005 levels. The City will need to reduce emissions by 475 MT CO2e in 2020 from the forecasted level to meet a state-aligned target of 15% below 2005 levels.
The City’s Municipal Adjusted BAU emissions in 2020 are estimated to be 1,751 MT CO2e, which is 17% above the 2005 baseline level (Table 16). By 2035, the level of reductions is anticipated to be 25% above 2005 levels, or 1,872 MT CO2e. The Adjusted BAU emissions are slightly lower than the BAU emissions due to the Low Carbon Fuel Standard measure described earlier. The Low Carbon Fuel Standard would lower the carbon intensity of fuels used in both the City’s Vehicle Fleet and Employee Commute sectors.
Table 16. Municipal Adjusted BAU Emissions
Sector 2005
(MT CO2e)
2012
(MT CO2e)
2020
(MT CO2e)
2020 % of
Total
2035
(MT CO2e)
2035 % of
Total
Buildings & Facilities 301 305 400 23% 428 23%
Employee Commute 348 218 266 15% 284 15%
Solid Waste 215 162 213 12% 227 12%
Outdoor Lighting 405 359 471 27% 504 27%
Vehicle Fleet 227 328 400 23% 428 23%
Water Pumping & Irrigation 5 0.64 0.64 <1% 0.64 <1%
Total 1,501 1,373 1,751 100% 1,872 100%
% Change from 2005 -9% 17% 25%
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22 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Reduction Targets
The State has set goals for reducing GHG emissions by 2020 and 2050 through AB 32 and Executive Order (EO) S-3-05, respectively. The State has also provided guidance to local jurisdictions as “essential partners” in achieving the State’s goals by identifying a 2020 recommended reduction goal. That goal, stated in the AB 32 Scoping Plan, was for local governments to achieve a 15% reduction below 2005 levels by 2020, which aligns with the State’s goal of not exceeding 1990 emissions levels by 20204. The State’s long term target is to emit no more than 20% of 1990 levels by 2050 (or, a reduction of 80% below 1990 levels by 2050). The State has not provided an interim target, nor has it provided guidance to local governments beyond the 2020 emissions target recommendations. It is however clear that the issue of climate change will not end in 2020 and continued reductions should be achieved to keep the State on a path toward the 2050 goal. A straight-line projection from the 2020 to 2050 goals would result in a reduction goal of 49% below 2005 levels by 2035 midpoint.
Ultimately, the City will determine the level of reductions that it can and should achieve. The recommended targets provided below are guidance based on consistency with the State’s goals.
Recommended Community Targets
In 2020, the City will meet the reduction target through existing efforts. In 2035, the City would need to reduce 24,210 MT CO2e emissions below the Adjusted BAU scenario to meet the State-aligned target (Table 17 and Figure 7).
Table 17. State-Aligned GHG Reduction Targets
Sector 2005 2012 2020 2035
BAU Emissions (MT CO2e) 137,160 126,611 125,982 129,157 Adjusted BAU Emissions (MT CO2e) 137,160 126,611 111,690 94,162 State-Aligned Target(% change from 2005) -15% -49%
State-Aligned Target (% change from 2012) -8% -45%
State-Aligned Emissions Goal (MT CO2e) 116,586 69,952
Reductions from Adjusted BAU needed to meet the
Target (MT CO2e) Target Met 24,210
4 In an analysis, the State concluded that a 15% reduction in emissions from 2005 levels by 2020 would be equivalent to achieving 1990 emissions levels.
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Reduction Targets 23
Municipal Targets
In 2010, the Hermosa Beach City Council declared its goal to become carbon neutral. The City is hoping to achieve this goal by 2020. Without this goal, the City’s emissions are anticipated to be 1,751 MT CO2e in 2020 and 1,872 MT CO2e in 2035. Therefore, the City must reduce emissions by 1,751 from the Adjusted BAU forecast to meet the 2020 goal and maintain this level in the future (Table 18 and Figure 8).
Table 18. State-Aligned Municipal GHG Reduction Targets 2005 2012 2020 2035
BAU Emissions (MT CO2e) 1,501 1,372 1,801 1,926
Adjusted BAU Emissions (MT CO2e) 1,501 1,372 1,751 1,872 Carbon Neutrality Target (% Reduction from 2005) -100% -100% Carbon Neutrality Emissions (MT CO2e) 0 0
Reductions from Adjusted BAU needed to meet the Target
(MT CO2e) 1,751 1,872
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
2005 2010 2015 2020 2025 2030 2035
MT CO2e
Water & Wastewater
Solid Waste
Commercial Energy
Residential Energy
Transportation & Mobile
Sources
15% below 2005
49% below 2005
Path to 2035 from 2020 ABAU
(-3.1%/yr)
Figure 7. Community Emissions Inventories, Projections, and Targets 1004
24 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Figure 8. Municipal Emissions Inventories, Projections, and Targets 0 200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2005 2010 2015 2020 2025 2030 2035
MT CO2e
Water Pumping &
Irrigation
Solid Waste
Buildings & Facilities
Outdoor Lighting
Employee Commute
Vehicle Fleet
Path to 2020 from 2012
1005
Conclusions and Next Steps 25
Conclusions and Next Steps
This Report presents the City’s community and municipal inventories, forecasts, and recommended reduction targets. It is the foundation of the EECAP and provides the City a first look at what will be needed to meet emissions reductions that are aligned with the State and to mitigate the City’s impacts on climate change. This Report also helps to guide the City in determining feasible energy efficiency reduction opportunities by detailing energy-related emissions, including electricity and natural gas from Residential and Non-residential sectors.
The next steps in the EECAP process are to review the information provided in this Report and to determine preliminary GHG reduction targets for the community and municipal operations. The South Bay Cities Council of Governments will also begin to work with the City to identify local and subregional energy efficiency measures that could be implemented to reach the City’s emissions targets. 1006
26 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach References
Association of Environmental Professionals. 2013. The California Supplement to the United States Community-Wide Greenhouse Gas (GHG) Emissions Protocol.
California Air Resources Board. 2010. Local Government Operations Protocol For the quantification and reporting of greenhouse gas emissions inventories version 1.1.
California Air Resources Board. 2011. California Greenhouse Gas Emissions Inventory: 2000-2009.
ICLEI 2012. U.S. Community Protocol for Accounting and Reporting of Greenhouse Gas Emissions version
1.0. Intergovernmental Panel on Climate Change. (IPCC) 1996. Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories.
Intergovernmental Panel on Climate Change. 2007. Climate Change 2007: The Physical Science Basis.
Contribution of Working Group I to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change. Solomon, S., D. Qin, M. Manning, Z. Chen, M. Marquis, K.B. Averyt, M.Tignor and H.L.
Miller (eds.). Cambridge University Press, Cambridge, United Kingdom and New York, NY, USA. 1007
Appendix A: Glossary of Terms
Adjusted Business-as-Usual: A GHG forecast scenario that accounts for known policies and regulations that will affect future emissions. Generally, these are state and federal initiatives that will reduce emissions from the business-as-usual scenario.
Baseline Year: The inventory year used for setting targets and comparing future inventories against.
Business-as-Usual (BAU): A GHG forecast scenario used for the estimation of greenhouse gas emissions at a future date based on current technologies and regulatory requirements and in the absence of other reduction strategies.
Carbon Dioxide Equivalent (CO2e): This is a common unit for normalizing greenhouse gases with different levels of heat trapping potential. For carbon dioxide itself, emissions in tons of CO2 and tons of CO2e are the same, whereas one ton of nitrous oxide emissions equates to 298 tons of CO2e and one ton of methane equates to 25 tons of CO2e. The values are based on the gases’ global warming potentials.
Community Inventory: GHG emissions that result from the activities by residents and businesses in the city. An inventory reports emissions that occur over a single calendar year.
Emissions Factor: A coefficient used to convert activity data into greenhouse gas emissions. The factor is a measure of the greenhouse gas intensity of an activity, such as the amount of CO2 in one kilowatt-hour of electricity.
Global Warming Potential (GWP): The relative effectiveness of a molecule of a greenhouse gas at trapping heat compared with one molecule of CO2.
Metric Ton (MT): Common international measurement for the quantity of greenhouse gas emissions. A metric ton is equal to 2205 lbs. or 1.1 short tons.
Municipal Inventory: GHG emissions that result from the activities performed as part of the government operations in the city and are a subset of the community inventory. An inventory reports emissions that occur over a single calendar year.
Reduction targets: GHG emissions levels not to be exceeded by a specific date. Reduction targets are often informed by state recommendations and different targets may be established for different years.
Sector: A subset of the emissions inventory classified by a logical grouping such as economic or municipal-specific category.
1008
1009
Appendix B: Methodology
This appendix provides a detailed description of the data sources, emission factors, policies, and assumptions used to develop the greenhouse gas (GHG) emissions inventories, forecasts under a business-as-usual (BAU) scenario, forecasts under an Adjusted BAU scenario, and the recommended GHG reduction targets.
Protocols
The GHG inventories for 2005, 2007, 2010, and 2012 were calculated using tools and guidance documents developed or supported by government agencies. Calculation protocols have been developed to ensure consistency among community and municipal inventories. Specifically, the U.S.
Community Protocol for Accounting and Reporting of Greenhouse Gas Emissions (Community Protocol) (ICLEI 2012) and the California Supplement (AEP 2013) were used for the community inventories and the Local Government Operations Protocol (LGOP) was used for the municipal inventories (CARB 2010).
These protocols often have multiple calculation methods for a single emission source depending on the data available. There are two broad approaches for calculating emissions: “bottom-up” and “top-down”.
A bottom-up approach relies on end-use data, such as the city-level electricity usage. A top-down approach relies on aggregated data that is allocated to the city based on population, employment, or other relevant indicator. Bottom-up calculations were performed whenever possible to provide the most detailed and likely accurate picture of emissions within a jurisdiction; however, when detailed data were not available, other appropriate methods were used and are described in this appendix. Data were also calculated and managed to best fit the GHG inventory and planning software tool used for this project, called ClearPath. ClearPath was developed by the Statewide Energy Efficiency Collaborative (SEEC) which is a partnership between several statewide agencies, utilities, and non-profits to assist cities and counties in climate mitigation planning. ClearPath is further described at californiaseec.org. In addition, a South Bay Cities Council of Governments (SBCCOG) User’s Guide is being developed as part of this project to help cities and SBCCOG to maintain the data and provide for consistent reporting of emissions over time.
Global Warming Potential Factors
The inventories include the three GHGs most relevant to community and municipal emissions: CO2, CH4, and N2O. Each GHG differs in its ability to absorb heat in the atmosphere based on their molecular properties and expected lifetime in the atmosphere, and it is useful to describe emissions in one unit of measurement. That unit of measurement is a CO2-equivalent, or CO2e and Global Warming Potential (GWP) factors are used to standardize emissions from various GHGs. GWP factors, developed by the Intergovernmental Panel on Climate Change (IPCC), represent the heat-trapping ability of each GHG relative to that of CO2. For example, the GWP factor of CH4 is 25 because one metric ton (MT) of CH4 has 25 times the heat-trapping capacity as one MT CO2 (over a 100-year period). IPCC periodically updates the GWP factors of GHGs based on new science and updated background mixing ratios of CO2. CO2 always has a GWP factor of 1 and the other GHGs are calculated relative to CO2. The California Air Resources Board (CARB) recently updated their GWP factors to align with the IPCC’s Fourth Assessment Report, as shown in Table B-1. GWP factors are unitless. Emissions in the inventories are reported in units of CO2e.
1010
B-2 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Table B-1. Global Warming Potentials
CO2 CH4 N2O
GWP 1 25 298
Source: IPCC Fourth Assessment Report, 2007.
Activity Data
Activity data is the end-use consumption amount of a sector, such as kilowatt hours of electricity, therms of natural gas, and vehicle miles traveled for on-road transportation. In estimating the City’s historic GHG emissions, activity data at the City level were obtained when possible (a “bottom-up” approach). When not available, other data sources were used, generally at the county level (a “topdown” approach). Municipal data for 2005 and 2007 were obtained from the City’s previous inventory report. Other data were provided by the sources as identified Table B-12.
TableB-12. Activity Data Sources
Data Data Source Notes
Community Electricity Southern California Edison
Municipal Electricity Southern California Edison Maintained by SBCCOG Community Natural Gas Southern California Gas Company
Municipal Natural Gas Southern California Gas Company
Community Water California Water Service
Vehicle Miles Traveled Southern California Association of Governments (SCAG)
Origin-destination approach,
described below
Demographic Data SCAG
Vehicle Fleet City
Employee Commute City
Off-Road Emissions OFFROAD Model County-level data
Waste CalRecycle
Origin-Destination VMT
For the community inventory, activity data (vehicle miles traveled) were based on an origin-destination approach used by the State in developing emissions target for metropolitan planning organizations under SB 375. This approach has also been the typical approach used in estimating emission within a city. This approach accounts for:
Half of the emissions where one endpoint is in the City, for example either the origin or destination of the trip.
All of the emissions where the trip begins and ends within the City. None of the emissions that are “pass-through”; that is, a trip passes through the City but does not begin or end within its boundary.
This approach is used to account for trips or portions of trips that the city may have some control over. 1011
Appendix B: Methodology B-3
Community Activity Data
Community activity data are shown in Table B-13, except for off-road emissions, which are shown in Table B-14 for Los Angeles County.
Table B-13. Activity Data used in 2005, 2007, 2010, and 2012 Community Inventories Sector 2005 2007 2010 2012 % Change
2005 to 2012
On-road Transportation
Total Vehicle Miles Traveled 140,684,101 138,727,165 139,197,605 138,350,955 -1.7% Residential Energy
Electricity (kWh) 47,843,215 49,976,195 49,906,427 49,778,450 4.0% Natural Gas (therms) 3,339,783 3,305,637 3,448,010 3,364,392 0.7% Commercial Energy
Electricity (kWh) 51,741,467 52,130,513 48,545,739 41,191,832 -20.4% Natural Gas (therms) 857,687 900,024 827,116 875,986 2.1% Solid Waste
Landfilled (tons) 24,578 18,490 14,230 13,511 -45.0%
ADC (tons) 1246 180 50 48 -80.7%
Water and Wastewater
Water (MG) 760.2 760.2 687.7 700.3 -7.9%
Recycled Water (MG) 30.9 30.9 26.4 27.7 -10.3%
Wastewater (City portion of
countywide residents) 0.20% 0.20% 0.20% 0.20% 0.5%
Off-road sources2(% of LA County emissions attributed to the City) Lawn & Garden (% Households) 0.30% 0.29% 0.29% 0.29% -1.7% Construction (% Building
permits) 0.32% 0.20% 0.13% 0.24% -25.7%
Industrial (% Manufacturing
jobs) 0.03% 0.03% 0.03% 0.03% 4.3%
Light Commercial (% Other jobs) 0.17% 0.17% 0.17% 0.18% 5.9% Recreation (Population weighted
by income) 0.36% 0.36% 0.35% 0.34% -6.3%
Agriculture (% Ag. Jobs) 0.10% 0.11% 0.06% 0.08% -17.6% 1012
B-4 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Table B-14. Emissions from Off-road Categories for Los Angeles County Off-road Class GHG
Type
2005
(MT CO2e /yr)
2007
(MT CO2e /yr)
2010
(MT CO2e /yr)
2012
(MT CO2e /yr)
Agricultural Equipment
CO2 921.79 910.27 893.24 882.09
CH4 0.19 0.17 0.14 0.12
N2O 0.01 0.01 0.01 0.01
Construction and Mining
Equipment
CO2 268,646.23 277,541.76 290,911.26 299,875.79
CH4 34.12 31.44 28.24 26.28
N2O 0.22 0.24 0.25 0.26
Industrial Equipment
CO2 8,099.90 8,562.29 9,255.58 9,870.65
CH4 7.16 6.2 4.46 3.89
N2O 0.69 0.63 0.56 0.55
Lawn and Garden Equipment
CO2 2,581.13 2,737.30 2,968.71 3,215.02
CH4 4.98 4.87 4.76 4.96
N2O 2.01 2.01 2.01 2.13
Light Commercial Equipment
CO2 5,300.36 5,572.36 5,979.92 6,387.77
CH4 2.83 2.54 2.18 2.05
N2O 0.91 0.97 1.02 1.07
Recreational Equipment
CO2 286.54 309.8 343.68 369.04
CH4 2.14 2.32 2.58 2.77
N2O 0.52 0.57 0.64 0.68
Municipal Activity Data
Municipal activity data are shown in Table B-15.
Employee Commute
Data for Employee Commute in ClearPath are entered as gasoline or diesel. Annual vehicle miles traveled is entered as is the percent of miles traveled by passenger cars, light trucks, and heavy trucks.
The City conducted a ridership survey in 2013 through SurveyMonkey.com and presented the results in a 2014 report titled “The City of Hermosa Beach Employee Commute Survey: 2013 & Greenhouse Gas Emissions Reduction Strategies”. 108 employees completed the survey, representing 76% of employees.
The results were summarized and extrapolated to the total number of City employees in 2010 and 2012.
Employee commute vehicle miles traveled by fuel type for 2005 and 2007 were taken from the City’s previous GHG inventories. The number of employees for 2010 was assumed to be the same as in 2012. 1013
Appendix B: Methodology B-5
Table B-15. Activity Data used in 2005, 2007, 2010, and 2012 Municipal Inventories Sector 2005 2007 2010 2012 % Change
2005 to 2012
Buildings & Facilities
Electricity (kWh) 895,746 932,207 883,858 915,327 2%
Natural Gas (therms)15,383 11,977 4,621 2,542 -53%
Outdoor Lights
City-Owned Electricity (kWh) 868,589 895,841 643,360 664,636 -23% SCE-Owned Electricity (kWh) 464,752 466,608 424,794 455,210 -2% Fleet & Equipment
City-Owned Fleet
Gasoline (gallons) 12,665 17,406 20,481 20,341 61%
Diesel (gallons) 2,584 2,584 4,121 5,502 113%
LPG (gallons) - - 36 23 NA
CNG (standard cubic feet) 13,377 13,377 81,114 98,658 638% Contracted2
Gasoline (gallons) 3,640 3,640 3,640 3,640 0%
Diesel (gallons) 2,057 2,057 2,057 2,057 0%
LPG (gallons) 5,127 5,127 5,127 5,127 0%
Employee Commute
Gasoline (gallons) 794,170 760,056 634,526 506,797 -36% Diesel (gallons) 26,784 35,852 25,110 20,055 -25%
# Full Time Employee Equivalents 186 184 154 123 -34%
Solid Waste2
Generated Waste (tons) 666 660 660 660 -1%
Water Pumping & Irrigation
Electricity (kWh) 17,033 1,712 1,907 1,999 -88%
1 Contracted fuel use was not available for 2010 and 2012. Data from 2007 were used. 2 Solid Waste data for 2010 and 2012 assumed 2007 values.
Emission Factors
Emissions factors are used to convert activity data to GHG emissions. An emission factor is defined as the average emission rate of a given GHG for a given source, relative to units of activity. By definition, an emission factor is related to activity data. The emission factors used in the inventories are described by sector below.
1014
B-6 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Electricity
California utilities report the average CO2 content per output of electricity on an intermittent basis. The CO2-intensity of electricity varies by utility and year, due to changes in supply, renewable generation, and other factors. The community and municipal operations use electricity provided by SCE except for embedded energy in water, which travels throughout the state and therefore utilizes electricity from multiple utilities (and are shown under the Water Sector).
Southern California Edison
SCE reported CO2 factors for 2005 and 2007 through the Climate Registry, and a CO2e factor for 2012 in their 2012 Corporate Responsibility & Sustainability Report. When an emission factor is unknown for a certain year, it is standard to use the most recently-reported historic factor until (and if) there is an updated factor. There is no published SCE emission factor for 2010; therefore the factor for 2007 was used for SCE electricity-related emissions calculations in 2010 (Table B-2).
Table B-2. Southern California Edison Electricity Emission Factors Year CO2 CH4 N2O Proxy Year Data Source
2005 665.72 0.03 0.011 NA
CO2: Climate Registry.
CH4 and N2O: U.S. Community Protocol
2007 630.89 0.029 0.010 NA
CO2: Climate Registry.
CH4 and N2O: U.S. Community Protocol
2010 630.89 0.029 0.010 2007
CO2: Climate Registry.
CH4 and N2O: U.S. Community Protocol
2012 7051NA NA NA 2012 Corporate Responsibility &
Sustainability Report
NA: Not Applicable.
1 The 2012 factor was reported as CO2e; therefore, there are no CH4 and N2O factors.
Natural Gas Combustion
Emission factors for natural gas do not vary greatly over time or by supplier. Therefore, emission factors are U.S. averages as listed in the Community Protocol and are applied for all years (TableB-4).
Table B-4. Natural Gas Emission Factors
CO2 CH4 N2O Data Source
kg /MMBtu 53.02 0.005 0.0001 U.S. Community Protocol
Transportation and Mobile Sources
EMFAC Model
CO2 emission factors for transportation and mobile sources are calculated using the State-developed Emissions Factor (EMFAC) model, which can be downloaded at http://www.arb.ca.gov/emfac/.
Emissions are available at the county level and emission factors were developed and applied to vehicle miles traveled specific to each inventory year. Data are aggregated as annual emissions for all vehicle 1015
Appendix B: Methodology B-7
model years and speeds, but separated by vehicle category. Vehicle categories include light-duty autos, light-duty trucks, medium-duty vehicles, heavy-duty trucks, and motorcycles.1These categorizations are used to develop an emissions factor for gasoline and diesel vehicles. Emission factors were developed using total CO2 exhaust, which includes emissions from vehicles in motion, idling, and ignition. While emissions from idling and ignitions are not directly related to mileage, they were included so that reductions from measures that may decrease idling could be accounted for in future inventories.
On-Road Transportation
Emissions were converted to emission factors as grams of CO2 per mile for gasoline and diesel vehicle using EMFAC and a 3-step process (for each inventory year):
1. Calculate the vehicle-class average fuel efficiency (miles/gallon) using EMFAC vehicle miles traveled and gallons of fuel consumed for Los Angeles County;
2. Calculate the vehicle-class average CO2 emission factor using EMFAC CO2 emissions2and gallons of fuel consumed for Los Angeles County;
3. Calculate the average grams CO2/mile traveled factor weighted by vehicle class miles traveled for Los Angeles County.
EMFAC does not provide emissions for CH4 and N2O; therefore, factors from the Community Protocol were used (Table B-5).
Table B-5. Fleet-Average Emission Factors
Gasoline On Road Average Factor
(grams/mile)
Diesel On Road Average Factor
(grams/mile)
CO2 CH4 N2O CO2 CH4 N2O
2005 466.062 0.030 0.034 1329.797 0.001 0.001
2007 464.019 0.028 0.029 1331.634 0.001 0.001
2010 458.638 0.028 0.029 1280.045 0.001 0.001
2012 442.657 0.028 0.029 1302.653 0.001 0.001
Employee Commute
Emissions from employee commute in the municipal operations are calculated using annual vehicle miles traveled for gasoline and diesel. CO2 emissions are estimated using a default emission factor of
8.78 and 10.21 kg/gallon for gasoline and diesel, respectively3and fuel economy, which is based on EMFAC outputs for each inventory year and vehicle class. Vehicle miles traveled are converted to CH4
1 Vehicle categories may use either EMFAC2007 or EMFAC2011 categorizations and result in the same data for the purposes of these inventories; EMFAC2007 categories were used here EMFAC2011 further disaggregates medium heavy-duty vehicles and heavy heavy-duty vehicles into 29 vehicle categories. This level of detail is not needed for these inventories. More information on vehicle categories is available at http://www.arb.ca.gov/msei/vehiclecategories.xlsx. 2 For 2010 and 2012, the emissions accounting for the effects of existing policies (Pavley and Low Carbon Fuel Standard) were used. These standards did not exist in 2005 and 2007. 3 Information from ClearPath developers e-mail dated June 19, 2014. 1016
B-8 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach and N2O emissions using emission factors from the Community Protocol. Table B-6 shows the miles per gallon and grams (CH4 and N2O) per mile used to estimate emissions from employee commute by vehicle class.
Vehicle Fleet
Vehicle fleet consists of City-owned and contracted vehicles used to perform City services. Vehicle Fleet requires input of gallons of fuel used by fuel type to estimate CO2 emissions. Vehicle miles traveled are used to estimate CH4 and N2O. The factors used for the City are shown in Table B-6.
Table B-6. Employee Commute and Vehicle Fleet Emission Factors 2005 2007 2010 2012
Gasoline
Passenger Vehicle
MPG 21.700 21.875 22.027 22.064
g CH4/mi 0.030 0.028 0.028 0.028
g N2O/mi 0.034 0.029 0.029 0.029
Light Truck
MPG 16.575 16.666 16.795 16.823
g CH4/mi 0.035 0.031 0.031 0.031
g N2O/mi 0.049 0.043 0.043 0.043
Heavy Truck
MPG 12.754 12.806 12.854 12.856
g CH4/mi 0.033 0.033 0.033 0.033
g N2O/mi 0.013 0.013 0.013 0.013
Diesel
Passenger Vehicle
MPG 27.558 27.662 29.006 29.889
g CH4/mi 0.001 0.001 0.001 0.001
g N2O/mi 0.001 0.001 0.001 0.001
Light Truck
MPG 27.032 27.251 27.705 28.498
g CH4/mi 0.001 0.001 0.001 0.001
g N2O/mi 0.001 0.001 0.001 0.001
Heavy Truck
MPG 17.343 17.588 18.797 18.858
g CH4/mi 0.005 0.005 0.005 0.005
g N2O/mi 0.005 0.005 0.005 0.005
Note: MPG is miles per gallon and is derived from EMFAC at the county level. CH4 and N2O emission factors are from the Community Protocol; Passenger Vehicle and Light Truck emission factors have data for 2005 and later; Heavy Truck only have 2010 data.
Off-Road
Off-road emissions include emissions from agriculture, construction, industrial, lawn and garden, light commercial, and recreational equipment. Annual emissions of CO2, CH4, and N2O are available at the county level from the State’s OFFROAD model. To estimate values for each city, relevant indicator data are used to estimate the proportion of county-level emissions attributable to the city. Table B-7 lists the 1017
Appendix B: Methodology B-9
indicator used to estimate the City’s portion of emissions for each category and Table B-8 shows Cityspecific data. City- and county-level indicator data were obtained from SCAG.
Table B-7. Off-road Emissions Indicators
Category Indicator
Agriculture Equipment Agriculture Jobs
Construction Equipment Building Permits Issued
Industrial Equipment Manufacturing Jobs
Lawn and Garden Equipment Households
Light Commercial Equipment Non- Manufacturing or Agriculture Jobs Recreational Equipment Population, Weighted by Median Income Table B-8. Off-road Emissions Indicator Data
Ag. Jobs Building
Permits
Mfg.
Jobs Households Other Jobs1 Population Income ($)
2005
City 3.786 1 136 2,884 3,646 8,058 123,702
County 13,562 25,623 461,099 3,178,736 4,045,922 9,816,200 48,606 % 0.03% 0.00% 0.03% 0.09% 0.09% 0.21%
2007
City 4.002 59 144 2,902 3,854 7,939 130,825
County 13,562 20,303 461,099 3,224,053 4,045,922 9,780,800 51,439 % 0.03% 0.29% 0.03% 0.09% 0.10% 0.21%
2010
City 3.69 2 114 3,100 3,572 8,064 142,286
County 10,598 7,466 362,157 3,454,093 3,758,244 9,818,605 56,000 % 0.03% 0.03% 0.03% 0.09% 0.10% 0.21%
2012
City 3 3 116 3,100 3,660 8,097 117,305
County 10,798 18,926 369,005 3,454,093 3,829,313 9,889,632 53,880 % 0.03% 0.02% 0.03% 0.09% 0.10% 0.18%
Note: Some percentages may appear off due to rounding. Ag. = Agriculture. Mfg. = Manufacturing. 1 Other indicates non-manufacturing and non-agricultural.
Water
Emissions from water are indirect. Water requires energy to move from its source to final treatment and the energy for most of these processes is not captured in local utility data (i.e., the portion that is used in a home or business and therefore contained in the owner’s utility bill). This portion is termed the “embedded energy” in water and particularly for southern California, the energy embedded in water is high and should be accounted for in a community inventory. The California Energy Commission (CEC) developed a report, titled Refining Estimates for Water-Related Energy Use in California, which estimates the energy required to supply, convey, distribute, and treat water in northern and southern California. Recycled water is less energy-intensive because it does not require the supply and conveyance energy. Outdoor water infiltrates into the ground and therefore does not have the 1018
B-10 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach wastewater energy treatment component. Therefore, the emission factors are adjusted to account for the proportion of recycled and outdoor water. The amount of water used for indoor or outdoor use was not available at the City level; however, the 2010 Los Angeles Department of Water & Power, Urban Water Management Plan states that 61% of water is for indoor use for the City of Los Angeles. The water usage is assumed to be similar for the South Bay sub-region. Therefore, the embedded energy in a million gallon (MG) of water in the City is estimated in Table B-9 using the CEC report and estimated indoor vs. outdoor water usage in the region.
Table B-9. Energy Embedded in Water
Conventional1(kWh/MG) Recycled (kWh/MG)
Supply and Convey 9,727 --
Treatment 111 111
Distribution 1,272 1,272
Wastewater Treatment 1,911 1,911
Total 13,022 3,294
South Bay Factor 12,275.71 2,548.71
1 From CEC’s 2006 Refining Estimates for Water-Related Energy Use in California, for Indoor water use in southern California.
Statewide Average Electricity
For energy embedded in water, a statewide average emission factor is applied because water in the South Bay sub-region is supplied from various regions in the State (Table B-3). Similar to SCE data, statewide emission factors are not available for each inventory year. For 2010 and 2012, the 2009 statewide emission factors were used as the proxy year.
Table B-3. California Statewide Electricity Emission Factors Year CO2 CH4 N2O Proxy Year Data Source
2005 948.28 0.03 0.011 NA U.S. Community Protocol
2007 919.64 0.029 0.010 NA U.S. Community Protocol
2010 658.68 0.029 0.006 2009 U.S. Community Protocol
2012 658.68 0.029 0.006 2009 U.S. Community Protocol
NA: Not Applicable.
Wastewater
The emissions for wastewater include the CH4 and N2O emissions from processing which consist of three sources: stationary, process, and fugitive emissions.
Stationary emissions are derived from combustion of digester gas at a centralized treatment facility. The City is served by the Los Angeles County Sanitation District’s Joint Water Pollution Control Plant (JWPCP). JWPCP is a centralized treatment facility that uses an anaerobic digester process and does not employ a formal nitrification/denitrification (N/DN) system. Detailed information regarding the amount of digester gas produces was not available, so an alternative method using City population information 1019
Appendix B: Methodology B-11
was used. Default factors from the Community Protocol were applied to estimate CH4 and N2O emissions for stationary emissions. Although CO2 emissions are also produced, the fuel source is considered a biofuel, and the resulting CO2 emissions are considered “biogenic” and are not reported4.
Process emissions include N2O emissions as a result of N/DN processes at the treatment facility. All wastewater facilities have emissions from N/DN—some facilities have a formal N/DN process, which would result in greater N/DN emissions, but for the JWPCP, N/DN emissions are solely a result of natural processes. The recommended approach to estimating these emissions is through the population served and default factors listed in the Community Protocol. In an advanced, centralized treatment facility, stationary and process emissions are relatively small compared to fugitive emissions. The Community Protocol, and likewise ClearPath, recommends multiplying the population-derived emissions by 1.25 to account for commercial and industrial discharges to the system. Regions without any commercial and industrial sources should use a factor of 1.0. Because the City is largely residential, a factor of 1.0 was applied to these emissions.
Fugitive emissions occur from inflow (septic systems) and effluent discharge. JWPCP reports facilitywide effluent, and effluent nitrogen content, which are factors used in estimating fugitive emissions (Table B-10). The City’s portion was determined by estimating the proportion of the population served by JWPCP. The ClearPath tool requires the daily N load in kg N per day. This is calculated using the factors listed in Table B-9 and the Community Protocol Equation WW.12:
Daily N Load for the City (kg N/day) = Effluent X Effluent Nitrogen Content X gallons/liter X City Population/Service Population,
Where Effluent is the facility-wide discharge in millions of gallons per day (MGD), Effluent Nitrogen Content is the average nitrogen content per volume (mg/L), and gallons/liter is a conversion factor (3.79). The Daily N Load entered into ClearPath was adjusted by a factor of 0.5 to account for the difference in emission factors for direct ocean discharge and stream/river discharge. In ClearPath, ocean discharge is not an option; however, the emissions are estimated to be ½ of those from discharge to a stream or river (see Community Protocol Appendix F). Therefore, the Daily N Load was adjusted by 0.5 to account for this difference.
Table B-10. Los Angeles County Joint Water Pollution Control Plant Data Used in Wastewater Fugitive Emissions
2005 2007 2010 2012
Effluent (MGD) 403a296b237c264d
Effluent Nitrogen content (mg/L) 40a36.7b39.7 e41.1d
a Default assumption based on influent.
b 2008 annual report data.
c 2011 annual report data.
d 2013 annual report data.
e Based on communication with Los Angeles County Sanitation District for 2009.
4 Emissions from digester gas combustion are automatically calculated in ClearPath when population is entered. 1020
B-12 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Solid Waste
Emissions from solid waste are primarily in the form of fugitive emissions of methane from decomposition. Emission factors are derived from the Community Protocol, based on the type of waste disposed. The State conducts a Waste Characterization Study (Study) every 4 to 6 years to determine the amount of waste attributable to each waste type. The Study is conducted at the State level by economic sector; therefore, community-level characterizations are not available. For the community inventory, the overall composition of California’s disposed waste stream was used to convert total tons into waste types (Table B-11). For the municipal inventory, the characterization for public administration was used (Table B-11). In addition to community-generated waste, some diverted green waste is used as landfill cover rather than importing landfill cover from other regions. This green waste is known as alternative daily cover (ADC) and is reported by CalRecycle for each community. The ADC characterization was determined through communication with the developers of ClearPath and does not vary by year or community. The emission factor to determine methane generation varies if the landfill operates a methane flare or generates electricity from methane capture. The Community Protocol recommends using an average factor of 75% recovery from landfill gas, although some landfills with have much higher gas recovery systems, and other landfills do not have any. Carbon dioxide generated by decomposition of waste in landfills is not considered anthropogenic because it would be produced through the natural decomposition process regardless of its disposition in the landfill. Nitrous oxide is not a by-product of decomposition and therefore no fugitive emissions of nitrous oxide are anticipated from this source. The waste characterizations and emission factors used to estimate emissions from solid waste are provided in Table B-11. The “Category in in the 2004 and 2008 Studies” detail which Study categories make up the ClearPath Category.
Table B-11. Waste Characterization and Emission Factors for Solid Waste ClearPath
Category
Category in 2004 and
2008 Studies
Alternative
Daily Cover1
2004
Study2
2008
Study3
Public
Administration
Emission
Factor1
Newspaper Newspaper 0% 2.2% 1.3% 5.5% 0.043
Office Paper
White/Colored Ledger Paper
+ Other Office Paper + Other
Miscellaneous Paper
0% 5.4% 4.9% 13% 0.203
Cardboard Uncoated Corrugated
Cardboard + Paper Bags 0% 6.7% 5.2% 5.1% 0.120
Magazine/ Third
Class Mail
Magazines and Catalogs +
Remainder/ Composite Paper 0% 6.5% 5.9% 15.4% 0.049
Food Scraps Food 0% 14.6% 15.5% 9.8% 0.078
Grass Leaves and Grass 30% 2.1% 1.9% 8.05% 0.038
Leaves Leaves and Grass 40% 2.1% 1.9% 8.05% 0.013
Lumber Branches and Stumps +
Prunings and Trimmings 0% 9.6% 14.5% 0.1% 0.062
Branches Lumber 30% 2.6% 3.3% 5% 0.062
1 Breakdown from ClearPath Developers via e-mail dated June 19, 2014. Used for all inventory years. 2 2004 Waste Characterization Study for California, Overall Waste Stream. Used for 2005 inventory. Does not total 100% as not all waste is organic.
3 2008 Waste Characterization Study for California, Overall Waste Stream Used for 2007, 2010, 2012 inventories. Does not total 100% as not all waste is organic.
1021
Appendix B: Methodology B-13
Forecasts
The forecasts are an estimate of what emissions in the City may be in 2020 and 2035. The forecasts were developed using standard methodologies under two scenarios: Business-as-Usual (BAU) and Adjusted BAU.
Business-as-Usual Forecasts
The BAU scenario uses current (2012) consumption patterns and predicted growth in the City in the absence of state and federal legislation that would reduce future emissions. The growth assumptions are those estimated by SCAG in their 2012 Regional Transportation Plan and are applied to emissions sectors based on their relevance. For example, future Residential Energy emissions were developed using current energy use per household (from the 2012 inventory) and the anticipated number of households in the future. Table B-16 shows the growth factors used to project emissions in the City.
Adjusted Business-as-Usual Forecasts
The Adjusted BAU scenario also uses growth estimates for the City, also accounts for legislation that will reduce emissions in the future, regardless of City actions. Table B-17 summarizes the legislation that will reduce the City’s emissions in the future and which sectors the legislation applies to.
TableB-16. Emissions Sectors and Demographic Growth Indicators Sector Demographic Indicator
Residential Energy Households
Commercial/ Industrial Energy Jobs
Solid Waste, Water, Wastewater, Aviation, Off-Road Sources Service Population (Population + Jobs) Transportation Vehicle Miles Traveled, modeled by SCAG
Municipal Jobs Municipal Emissions1
SCAG: Southern California Association of Governments
1 The number of jobs in the City is used as an indicator for all municipal operation emissions except Aviation, which is forecast consistent with the community forecast (by change in service population).
Table B-17. Legislation Applied to Adjusted BAU Forecasts Legislation Description Emissions Sector Affected
Low Carbon Fuel
Standard
Reduce carbon intensity of transportation fuels
10% by 2020.
On-road Transportation, Employee
Commute, Vehicle Fleet
AB 1493 and
Advanced Clean Cars
Implement GHG standards for passenger vehicles,
implement zero-emission vehicle program, support
clean fuels outlet regulation.
On-road Transportation
California Building
Code Title 24
Improved energy efficiency standards for new
residential and non-residential construction.
Residential Energy, Non-residential
Energy
Renewable Portfolio
Standard1
Provide 33% of electricity from renewable sources
by 2020. Water
Senate Bill X7-7
Reduce urban per capita water consumption 20%
by 2020. Water
1 Potential GHG reductions from this legislation were not applied to the electricity in SCE’s service territory due to the uncertainty in SCE’s generation sources after the closure of the San Onofre Nuclear Generating Station. 1022
B-14 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Low Carbon Fuel Standard, AB 1493, and Advanced Clean Cars Changes in on-road emissions in Los Angeles County were modeled using EMFAC, which models both the emissions with and without Low Carbon Fuel Standard and Pavley I. Additional modeling was conducted to estimate the change in emissions due to Advanced Clean Cars. The rate of reductions from on-road transportation measures through 2020 was assumed to be 0.0344% per year for gasoline and
0.0106% per year for diesel. After 2020, the rate of reductions was assumed to be 0.03452% per year for gasoline and 0.0251% per year for diesel.
California Building Code Title 24
Title 24 updates will raise the minimum energy efficiency standards for new buildings, thereby decreasing the expected energy consumption of future development in the City. Under the adjusted BAU scenario, it was assumed that the 2013 Title 24 standards that went into effect in 2014 will make new residential and non-residential buildings more efficient than they would be under the 2008 Title 24 standards for new residential buildings. The energy savings were estimated using analyses developed by the California Energy Commission and the applied to the expected new development in the City to 2020 and 2035. The rate of reductions was applied to the City’s 2012 energy use (kWh or therms) per household (for Residential energy) or per job (for Commercial energy). Savings were applied to new development anticipated in the City. Detailed energy savings assumptions are below.
Residential
Residential electricity is estimated to be 32.6% lower under the new standards.5This percentage savings is relative to heating, cooling, lighting and water heating only and do not include other appliances, outdoor lighting that is not attached to buildings, plug loads, or other energy uses. Electricity consumption due to heating, cooling, lighting, and water heating accounts for 34% of total household electricity use.6Therefore, the percentage of total residential electricity that will be reduced as a result of the 2013 Title 24 standards is 11.1%.
Residential natural gas savings were estimated 5.8% lower under the new standards. Again, this percentage savings pertains only to the energy sources affected by Title 24 Standards. Natural gas consumption due to space and water heating accounts for 86% of total household natural gas use.7 Therefore, the percentage of total residential natural gas that will be reduced as a result of the 2013 Title 24 standards is 5.0%.
Commercial
Commercial Electricity savings were estimated to be 21.8% lower under the new standards. Title 24- related measures would impact 77.2% of total electricity use in commercial buildings8; therefore, 16.8% reduction in electricity consumption may be expected in new commercial development.
5 CEC Impact Analysis, California’s 2013 Building Energy Efficiency Standards, July 2013. CEC-400-2013-008. 6 CEC 2009 California Residential Appliance Saturation Appliance Study, October 2010. CEC-200-2010-004. 7 CEC 2009 California Residential Appliance Saturation Appliance Study, October 2010. CEC-200-2010-004. 8 CEC 2006. California Commercial End-Use Survey. March 2006. CEC-400-2006-005. 1023
Appendix B: Methodology B-15
Natural gas savings were estimated to be 16.8% under the new standards compared to the previous standards. Heating and cooling account for 69.7% of natural gas consumption in commercial facilities; therefore, 11.7% reduction in natural gas consumption may be expected from 2013 Title 24 standards applied to new commercial development.
Renewable Portfolio Standard
The Renewable Portfolio Standard will be fully implemented in 2020. The level of implementation varies by utility; however, ICLEI estimates that the average statewide level of implementation is 5% per year, compounded annually. As noted in the Report, this reduction is only taken for electricity used in the transport and treatment of water, which moves throughout the State. The reduction is not taken for electricity wholly within SCE’s territory.
Senate Bill X7-7
SB X7-7 will be implemented by individual water districts. For the City’s water provider, California Water Service Company, the level of implementation was estimated using an annualized reduction rate from the Company’s baseline water consumption rate (141 gallons per capita per day, GPCD) to the target water consumption rate (126 GPCD).
Target Setting
The state-aligned targets are provided to assist the City in determining appropriate emission reduction goals. Recommended targets are based on existing California climate change legislation and State guidance relevant to establishing a GHG reduction target. While State goals are based on a 1990 baseline year, the City’s baseline year is 2005. Therefore, the reduction targets are expressed as a percent reduction below 2005 levels. Targets are recommended for 2020 to align with AB 32 and 2035, which is a midpoint between the 2020 goal and the State’s long-term 2050 goal. Planning beyond 2035 is considered speculative, as legislation and technology may change significantly before 2050. While it is important for continued reductions well beyond 2035, no local targets are recommended at this time.
Table B-18 provides a summary of the State’s goals and the State’s guidance to local governments regarding GHG reduction targets. This guidance applies to and communitywide emissions reductions efforts. The City has adopted a carbon neutrality goal for municipal operations by 2020.
Table B-18. Summary of State Reduction Targets and Guidance on Local Government Targets Aligned with State Targets
2020 Interim Year Between
2020-2050 2050
State Targets
(AB 32 and EO S-3-05) 1990 levels NA 80% below 1990 levels State Guidance on Local Government
Targets (AB 32) Scoping Plan
Recommended Target and Attorney
General’s Office Guidance
15% below
2005-2008 levels
Demonstrate a trajectory
toward statewide 2050 levels
(e.g., 49% below 2005 levels
by 2035)
NA
1024
B-16 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Table B-19 demonstrates how the local targets are aligned with State targets.
Table B-19. Comparison of 1990 Baseline Targets vs. 2005 Baseline Targets Target Year Percent below
1990 Emission Levels
Percent below
2005 Emission Levels
2020 0.0% 15.0%
2021 2.7% 17.3%
2022 5.3% 19.5%
2023 8.0% 21.8%
2024 10.7% 24.1%
2025 13.3% 26.3%
2026 16.0% 28.6%
2027 18.7% 30.9%
2028 21.3% 33.1%
2029 24.0% 35.4%
2030 26.7% 37.7%
2031 29.3% 39.9%
2032 32.0% 42.2%
2033 34.7% 44.5%
2034 37.3% 46.7%
2035 40.0% 49.0%
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2022/23 Rates
Part of CPA’s value proposition is to always have rates that are competitive with SCE.
CPA’s Board sets rates annually, effective July 1, to provide rate stability and predictability. Due to market conditions, multiple SCE rate changes, and annual volatility in the PCIA, or “exit fee,” comparisons can fluctuate over the course of a year.
Energy Product Typical
Residential Bill
Typical Small
Business Bill
Comparison to
SCE base
SCE base rate $172 $251
Lean Power $171 $250 -1%
Clean Power $172 $251 0%
100% Green Power $177 $269 3%
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ORDINANCE NO. 22-____
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HERMOSA
BEACH APPROVING THE JOINT POWERS AGREEMENT FOR CLEAN
POWER ALLIANCE OF SOUTHERN CALIFORNIA AND AUTHORIZING
THE IMPLEMENTATION OF A COMMUNITY CHOICE
AGGREGATION PROGRAM
The City Council of the City of Hermosa Beach does ordain as follows:
WHEREAS, the City of Hermosa Beach has been actively investigating options to provide electric services to constituents within its service area with the intent of achieving greater local involvement over the provision of electric services and promoting renewable energy at competitive rates;
WHEREAS, on September 24, 2002, the Governor signed into law Assembly Bill 117 (Stat. 2002, Ch. 838; see California Public Utilities Code section 366.2; hereinafter referred to as the “Act"), which authorizes any California city or county, whose governing body so elects, to combine the electricity load of its residents and businesses in a community-wide electricity aggregation program known as Community ChoiceAggregation; WHEREAS, the Act expressly authorizes participation in a Community Choice Aggregation (CCA) program through a joint powers agency;
WHEREAS, through Docket No. R.03-10-003, the California Public Utilities Commission has issued various decisions and rulings addressing the implementation of CCA programs, including a procedure by which the California Public Utilities Commission will review “Implementation Plans," which are required for submittal under the Act as the means of describing the CCA program and assuring compliance with various elements contained in the Act; WHEREAS, the Clean Power Alliance of Southern California (CPA) is a joint powers authority established pursuant to California Government Code section 6500 et seq. and California Public Utilities Code section 366.2(c) and a Joint Powers Agreement (“Joint Powers Agreement"), which purposes include the following:
To form a Joint Powers Authority known as “Clean Power Alliance of Southern California” (formerly known as “Los Angeles Community Choice Energy Authority”); and
To specify the terms and conditions by which participants may participate as a group in energy programs, including the implementation of a CCA program; WHEREAS, an Implementation Plan Addendum will be submitted for review and adoption by the CPA Board of Directors;
WHEREAS, Community Choice Aggregation by and through CPA appears to provide a reasonable opportunity to accomplish all of the following:
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To provide greater levels of local involvement in and collaboration on energy decisions;
To significantly increase the amount of renewable energy available to CPA energy customers;
To provide price stability, long-term electricity cost competitiveness and other benefits for the community; and
To reduce greenhouse gas emissions related to the electricity sector.
WHEREAS, the Act requires CCA program participants to individually adopt an ordinance (“CCA Ordinance") electing to implement a CCA program within its jurisdiction by and through its participation in CPA;
WHEREAS, it is in the public's interest and welfare to establish a CCA program within the City of Hermosa Beach; and
WHEREAS, the Joint Powers Agreement expressly allows the City to vote to withdraw its membership in CPA (and its participation in the CCA program) by providing no less than 180 advance written notice to CPA.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. That the recitals set forth above are true and correct and are incorporated as though fully set forth herein.
SECTION 2. Based upon the findings and declarations set forth in this ordinance, and in order to provide businesses and residents within the jurisdictional boundaries of the City with a choice of power providers and with the benefits described in the recitals above, the City Council hereby elects to implement a CCA program within the City's jurisdictional boundaries. Upon approval and execution of the Joint Powers Agreement, the City will implement the CCA program by and through the City's participation in CPA).
SECTION 3. That the City Council hereby approves the Joint Powers Agreement, and directs that the City proceed with the participation in CPA.
SECTION 4. That the City Council declares that, should any provision, section, paragraph, sentence or word of this ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this ordinance as hereby adopted shall remain in full force and effect.
SECTION 5. That this ordinance shall become effective thirty (30) days after its adoption.
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SECTION 6. That the City Council finds that it has the authority to adopt this ordinance, that the ordinance is constitutionally valid and that the ordinance is consistent with the general powers and purposes of the City.
SECTION 7. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption.
PASSED, APPROVED, AND ADOPTED this 27th day of September, 2022.
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California
ATTEST: APPROVED AS TO FORM:
_________ ___
Myra Maravilla, City Clerk Michael Jenkins, City Attorney 1029
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1034
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0666
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of October 25, 2022
CONSIDERATION OF PROPOSAL FOR THE AMENDMENT
AND EXTENSION OF AGREEMENTS BETWEEN
THE CITY OF HERMOSA BEACH AND
ARAKELIAN ENTERPRISES, INC (DBA ATHENS SERVICES)
FOR SOLID WASTE MANAGEMENT SERVICES AND
STREET SWEEPING AND CLEANING SERVICES
(Environmental Programs Manager Douglas Krauss)
Recommended Action:
Staff recommends City Council:
1. Consider the revised proposal submitted by Athens Services, Inc. for extension and amendment of the current solid waste management and street sweeping and cleaning services agreements;
2. Provide feedback regarding the proposal terms and approve the proposal in substance; and
3. Direct staff to proceed with issuance of a Proposition 218 notification (Attachment 6) regarding the proposed rate changes.
Executive Summary:
Athens Services (Athens) has provided solid waste and street sweeping services for Hermosa Beach since 2013 and 2010, respectively. Both agreements were set to expire in June 2021 and were extended an additional 24 months per the terms of the agreements. Athens Services submitted informal proposals to the City for the purpose of discussing amendment of the current agreements and extension of the terms. At its May 10, 2022 meeting, Council considered the proposals and provided staff direction on the most desirable option to proceed with negotiations. Staff negotiated with Athens to refine its proposal and presents the revised offer and terms for Council’s approval.
Should Council accept the revised proposal, staff would proceed with the required Proposition 218 notification and process regarding the proposed rate changes and prepare the agreement amendments for execution.
Background:
At its October 12, 2010 meeting, City Council approved an agreement with Athens Services for Sweeping/Cleaning of Streets, Alleys, Walkstreets, Parking Lots and the Pier (Attachment 1). The City of Hermosa Beach Page 1 of 15 Printed on 10/21/2022 powered by Legistar™1035
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Sweeping/Cleaning of Streets, Alleys, Walkstreets, Parking Lots and the Pier (Attachment 1). The agreement was subsequently amended by the first amendment to agreement for Street Sweeping Services dated March 26, 2013. That amendment served to extend the term and have it coincide with the term of the agreement with Athens for solid waste collection services, which was also entered into on March 26, 2013 (Attachment 2). A second amendment to the agreement for street sweeping services was approved September 25, 2018, adding certain cleaning services. A first amendment to the solid waste franchise was executed in September 2018 revising some minor contract elements. In 2019, the City and Athens Services agreed upon a special rate increase for organic waste collection in response to AB1826 (2014), a State law that required commercial and multi-family customers to recycle organic waste (Attachment 3).
The City pays Athens approximately $544,000 annually for street sweeping and cleaning services.
This agreement includes a number of sweeping and cleaning services in the public right-of-way including: weekly sweeping of all streets, daily cleaning of the Strand and Pier, regular cleaning of Pier Plaza, cleaning of sidewalks, emptying public trash cans citywide, and sweeping and cleaning of public parking lots.
The solid waste franchise agreement provides solid waste services for all properties in the City, including residential, commercial, and municipal properties. This includes free collection service for City facilities and the Hermosa Beach School District. The agreement also includes a number of related services including hosting bi-annual compost give-away and paper shredding events. There is no cost to the City for this agreement because compensation to Athens is via rates paid by ratepayers and the City receives approximately $362,000 in franchise fees and AB 939 surcharges per year that adjust proportional to Athens’ revenue. A solid waste administrative fee of approximately $60,000 is also received.
Both these agreements were scheduled to expire June 30, 2021. Per the agreements, the City had the sole option to extend the agreement up to 24 months. The City extended these agreements until June 30, 2023 to ensure continuity of service and continue the favorable rates to customers. As was intended in 2013 during the amendment of the street sweeping and clean services agreement, coinciding the two agreements allows efficient administration of the agreements and logistical coordination between the two services.
The extension allowed the City to continue to work with Athens to implement mandatory organics recycling programs that must be implemented in 2022. Staff has been working closely with Athens to deliver carts to customers, distribute outreach materials, and monitor participation per the requirements of the mandatory organics processing regulations of Senate Bill 1383 (2016). An Ordinance adding these regulations to the Hermosa Beach Municipal Code was approved by Council in May 2021, allowing the City to enforce these measures, per State requirements.
The extension of the agreements for 24 months also allowed the City time to explore the full range of City of Hermosa Beach Page 2 of 15 Printed on 10/21/2022 powered by Legistar™1036
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The extension of the agreements for 24 months also allowed the City time to explore the full range of options for the future of these agreements. Staff reviewed both existing agreements and hired a specialist to analyze Athens’ proposals. Staff additionally surveyed neighboring agencies and evaluated recent contract negotiations in the region to provide Council context on the City’s options.
At its May 10, 2022 meeting, City Council was presented with the following options to apply to either the solid waste agreement, street sweeping agreement, or both.
Option 1-Request for Proposals (RFP)
The process of issuing an RFP seeking new vendors typically takes 12-18 months. This timeline includes: assessing the current contract; developing and advertising the RFP; analyzing the submitted proposals; selecting the desired contractor; negotiating a new agreement; securing Council approval; executing the new agreements; and onboarding the new contractor.
Should a new hauler be chosen, a transition process would then occur for the new hauler to learn the routes and logistics of the required services. RFP processes for solid waste service recently undertaken by two local agencies took close to 18 months and cost $150,000 each. In Hermosa Beach’s case, because these are two separate agreements for different services, this cost could be doubled. Typically, the RFP includes language requiring the successful proposer to reimburse the City for these costs.
The RFP process and subsequent proposals would most likely reflect the many cost uncertainties currently affecting the waste industry. These uncertainties include historically low commodity prices for recyclables and the significant costs associated with mandatory organic waste service implementation. RFPs issued in 2019 by Manhattan Beach and Lawndale resulted in rate increases of approximately 50 percent and 70 percent, respectively. These increases were largely due to the many new programs and services associated with mandatory organics service. For reference, processing facility rates for organic waste are typically 40 percent more than disposal rates for municipal solid waste.
Although a special rate increase to accommodate increased organic waste services in Hermosa Beach was approved by the City Council at its September 10, 2019 meeting, this increase was implemented to provide organic recycling service, allowing the City to comply with AB1826 (2014), and was thus designed specifically for commercial and multi-family customers targeted to begin recycling organics by 2019. Residential organics recycling was also implemented at this time but was optional for customers. Rates for organic service for commercial customers were built into these increased rates but, because residential service was optional, the rate was kept separate from existing solid waste (black cart) service. SB1383 is much broader in scope for not only the number of required participants but also associated ongoing programs and administration.
Option 2-Negotiate with Athens
In August 2021, Athens submitted an informal proposal for the City’s review that described terms of City of Hermosa Beach Page 3 of 15 Printed on 10/21/2022 powered by Legistar™1037
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REPORT 22-0666
In August 2021, Athens submitted an informal proposal for the City’s review that described terms of an amendment and extension to the existing agreements. Discussions between Athens and City staff led to Athens submitting additional informal proposals with variations on these suggested terms.
City staff issued an RFP to solicit specialists to analyze the proposals, assess them in terms of general trends in the solid waste industry, and compare them within the context of the regional market. The City solicited three proposals from qualified consultants specializing in solid waste and awarded the contract to R3 Consulting Group (R3). R3 is uniquely qualified due to their statewide work on solid waste contracts and analysis. They are also directly involved in the statewide implementation of new mandatory organics recycling regulations on behalf of public agencies throughout the State. Per the current franchise agreement, the analysis was funded through the City, but paid for by Athens. Athens deposited the not-to-exceed contract amount with the City, which selected, directed, and paid the specialist team directly.
R3 Consulting Group analyzed Athens’ proposals to help the City assess whether the amendments and rate adjustments proposed are equitable within existing market conditions and in relation to Athens’ current revenues and forecasts and provided a final report (Attachment 4). Athens’ proposals each included variations on a significant increase to customer rates for solid waste services. These increases serve to compensate Athens for revenue deficit associated with Hermosa Beach’s historically low rates relative to the regional market, as well as the additional costs associated with implementation of mandatory organics recycling programs associated with SB1383.
As described in the R3 analysis, and based on financial information prepared by Athens, the company has been operating at a loss in Hermosa Beach for some time. With the proposed rate increases, Athens would not begin to realize a profit until 2024-25 at the earliest.
As described in the report from the specialist firm that analyzed the proposals, Athens’ proposals are reasonable. As stated in the report:
“Athens’ proposal to extend the Agreement term, provide SB 1383 organics collection and associated services, and increase rates appears to be reasonable. Even after the proposed rate increases over three to five years, and given modest assumptions about how rates in the rest of the South Bay region will increase over time, the City’s residential rates are likely to remain below the average of other South Bay cities. Moreover, our analysis indicates that Athens’ proposed rate increases would achieve an appropriate level of reasonable operating profit within three to five years while also providing funding for new SB 1383 programs and new payments to the City.”
Despite the proposed rate increase, it is anticipated that Hermosa Beach customers would still enjoy some of the lowest rates in the region. Additionally, all indications from community feedback and staff observations are that customers are generally content with the services provided by Athens as well.
Athens has been a reliable community partner for over 10 years and is very familiar with Hermosa City of Hermosa Beach Page 4 of 15 Printed on 10/21/2022 powered by Legistar™1038
Staff Report
REPORT 22-0666
Athens has been a reliable community partner for over 10 years and is very familiar with Hermosa Beach and its services and needs. City staff has also been satisfied with the quality of service and responsiveness for street sweeping, sidewalk cleaning, and other City services provided by Athens.
Although similar, each proposal option was crafted by Athens so that the various costs associated with any changes are amortized in synchronization with the scheduled rate increases. The various proposal elements are described and discussed below. They include:
1. Rate increase;
2. Change to the annual rate adjustment formula;
3. Change to minimum diversion requirement;
4. New programs to support SB1383 compliance;
5. Term extension; and
6. Payments to the City.
Rate Increase
Each proposal from Athens includes significant rate increases. The rate increases proposed by Athens span a range from 47 percent to 53.25 percent and would be implemented over the course of 3-5 years. These proposed increases are comparable to recent rate increases in the cities of Lawndale (67 percent in 2019), Redondo Beach (35 percent for residential, 70 percent for commercial in 2019) and Manhattan Beach (47 percent average across all sectors in 2019), each of which were implemented immediately.
As shown below in the following table, from rate surveys performed by R3, Hermosa Beach residents and businesses currently enjoy some of the lowest trash rates in the region.
Comparison of Residential FY 2021-22 Rates for South Bay Cities (includes green cart service though not all agencies offer organics recycling yet) 32/35-gal. 64-gal. 96-gal.
Hermosa Beach $ 12.37 $ 17.04 $ 21.68
Inglewood N/A 17.46 N/A
Manhattan Beach 14.01 18.83 22.37
Redondo Beach N/A 22.72 N/A
Hawthorne 20.45 23.87 27.71
Lawndale 23.09 27.45 31.80
Rancho Palos Verdes 26.06 33.54 40.99
Torrance N/A 34.10 35.31
Culver City N/A 44.21 N/A
Average without Hermosa Beach 20.90 27.77 31.64
Hermosa Beach Over (Under)
Average
(8.53) (10.73) (9.96)
Percent Over (Under) Average (41%) (39%) (31%)
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Hawthorne 20.45 23.87 27.71
Lawndale 23.09 27.45 31.80
Rancho Palos Verdes 26.06 33.54 40.99
Torrance N/A 34.10 35.31
Culver City N/A 44.21 N/A
Average without Hermosa Beach 20.90 27.77 31.64
Hermosa Beach Over (Under)
Average
(8.53) (10.73) (9.96)
Percent Over (Under) Average (41%) (39%) (31%)
Comparison of Commercial FY 2021-22 Rates for South Bay Cities 3 CY 1/week
Garbage; 96-
gallon
Recycling;
96-gallon
Organics
1 CY 1/week
Garbage; 1
CY 1/week
Recycling;
96-gallon
Organics
3 CY 1/week
Garbage; 1
CY 1/week
Recycling;
96-gallon
Organics
Hermosa Beach $198.91 $148.35 $207.53
Inglewood 189.72 189.72 N/A
Culver City 204.55 N/A 204.55
Manhattan Beach 219.79 N/A 273.33
Lawndale 220.40 148.62 220.40
Hawthorne 235.73 182.20 262.13
Redondo Beach 242.64 N/A 242.64
Average without Hermosa Beach 218.81 173.51 240.61
Hermosa Beach Over (Under)
Average
(19.90) (25.16) (33.08)
Percent Over (Under) Average (9%) (15%) (14%)
For the categories above that do not contain rates, the information was either not available in an equivalent form or the service is not available.
Despite the proposed significant rate increase, Hermosa Beach’s rates are still projected to be some of the lowest in the area over the next five years. The rates for the some of the cities shown in the chart below, including Inglewood and Hawthorne, do not yet incorporate full organic recycling service, and thus are expected to increase accordingly. Additionally, projected rates for communities other than Hermosa Beach and Redondo Beach are based on assumptions of 3-5 percent annual increases, not inclusive of possible extraordinary adjustments.
Change to the current annual rate adjustment formula
A change in the annual rate adjustment formula was included in each of the proposal options. In the existing agreement for solid waste services, Athens is allowed an annual rate adjustment, which is based on a weighted calculation of several indices including the Consumer Price Index for All Urban Consumers (CPI) and Producer Price Index for fuel and equipment. Athens proposes a change to City of Hermosa Beach Page 6 of 15 Printed on 10/21/2022 powered by Legistar™1040
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REPORT 22-0666
Consumers (CPI) and Producer Price Index for fuel and equipment. Athens proposes a change to this formula that would instead rely solely on the Garbage and Trash Collection Consumer Price Index published by the Bureau of Labor Statistics (BLS), plus one additional percent. Per Athens, this index better reflects the realities and costs of the solid waste industry and it is increasingly common for waste haulers to request that cities utilize this index for regular rate adjustments.
R3 mentions in their analysis that, although this index is traditionally higher than the current indices used by Athens, inflation makes it difficult to accurately forecast either of these indices and consequent rate adjustments. The table below provides the City’s recent annual rate adjustments compared to hypothetical adjustments using the proposed index for the same years. In the table, the proposed “Garbage and Trash Collection in U.S. City Average” index was inserted into the existing rate adjustment calculation formula and the additional one percent was added.
Hermosa Beach Adjustment
(percent)
Garbage & Trash Index Adjustment + 1
(percent)
2016 -0.46 2.40
2017 0.79 2.80
2018 3.43 3.00
2019 1.64 3.97
2020 2.02 5.56
2021 0.88 3.75
Average 1.79 3.58
Change in the minimum diversion requirement
With each proposal option, Athens proposes to revise the existing requirement to divert 50 percent of all solid waste it collects. They have instead offered to focus on helping the City comply with SB1383 and continuing to indemnify the City from any penalties associated with non-compliance with AB939, the Integrated Waste Management Act of 1989, as included in the existing agreement. AB939 established a mandatory 50 percent diversion requirement for agencies statewide. As explained in R3’s analysis, other agencies are making similar changes to their agreements with their waste haulers to reflect the State’s changing emphasis from monitoring strict diversion percentages to instead implementing programs to increase and expand diversion.
This change in strategy also reflects the changing realities of commodity and recycling markets which have made comprehensive diversion more difficult. R3 recommends that the City require similar indemnification for other relevant State regulations related to waste diversion such as SB1383.
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Comprehensive implementation of mandatory organics recycling program in compliance with SB1383 Athens has already begun implementing many of the programs necessary to help the City achieve compliance with SB1383 and has secured the resources to establish the required permanent program elements. These include: education and outreach; mandatory site visits and contamination screening; ongoing monitoring; and data management and reporting. Athens’ implementation strategy for these programs is included in each proposal option.
The City relies on the waste hauler for implementation of many of these programs, both due to inherent operational logistics as well as a lack of adequate City staff resources. Per the R3 analysis, the costs of SB1383 implementation are extraordinary beyond the regular annual rate adjustment and could result in a separate extraordinary rate adjustment request. In their report, R3 has included suggested language to include in a potential contract amendment which would specify the services and programs required to ensure Athens’ implementation of SB1383.
Term Extension
Each proposal option includes a minimum 10-year term extension of both the solid waste and street sweeping agreements. The length of the terms correlates directly with Athens’ ability to amortize costs and recover revenues. At a minimum, Athens has proposed a flat 10-year extension and, at a maximum, they have proposed a 10-year “rolling” term that would automatically renew assuming Athens is materially compliant with all franchise terms. With the “rolling” term extension, the City has the option to trigger termination only after the initial five years, so the term is essentially 15 years at a minimum. Triggering the termination would also result in reduction of franchise fees paid to the City, per Athens’ proposal. The other proposed term extension is a 10-year extension to the current agreement terms with a clause that would add five years at the end of that time should Athens be found materially compliant with certain contract terms and if monthly customer rates are within 10 percent of the average residential rate in the surrounding area at that time.
Payments to City
Each of Athens’ proposal options include payments to the City, commensurate to the revenue projections anticipated from the rate increases and term extension. These payments are proposed alternatively as one-time upfront payments or as funds specified for specific services and programs.
For instance, in the proposal with the “rolling” term extension, a $200,000 cash payment is proposed.
In the option with the simple 10-year extension, a $100,000 upfront payment is proposed. In the option with the 10-year term extension that includes a 5-year renewal option, the funds are earmarked as such:
· $20,000 annual payment for additional cleaning and trash removal services, to be chosen by the City;
· $10,000 towards the replacement of lids on public trash cans; and City of Hermosa Beach Page 8 of 15 Printed on 10/21/2022 powered by Legistar™1042
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· $40,000 towards installation of downtown decorative lighting.
The annual $20,000 for services could be used to address a variety of seasonal or sporadic cleaning needs that arise, including pressure washing, additional trash pick-up at parks, or other services Athens currently provides. A $10,000 one-time payment for the replacement of lids on City trash receptacles was proposed in response to discussions related to the City’s public trash cans and the ongoing cleaning and maintenance they require.
Athens first submitted initial drafts of these proposals to the City in August 2021. The one-time payment of $40,000 for lighting was proposed then, and in October 2021 Athens donated these funds to the City for the purpose of installing decorative lights. The City secured a vendor and used the donation to fund the installation. The lights are now in place year-round on the roofline of the Community Center and on palm trees in the center medians of Pier Avenue and Hermosa Avenue in the downtown area.
The three informal proposal options previously provided by Athens and presented to Council at its May 10, 2022 meeting are listed verbatim below:
OPTION A
1. Extend trash contract to a new 10-year term contract;
2. Extend the Street Sweeping & Maintenance contract to a new 10-year term contract;
3. Implement a 52 percent extraordinary rate adjustment, spread over three years;
4. Provide a one-time $100,000 up-front payment to the City;
5. Implement a SB1383 program for all green barrels & provide other SB1383 compliance (waste characterizations, route audits, reporting assistance, site visits, etc.);
6. Modify the diversion requirement from 50 percent hauler diversion to AB939 CalRecycle compliance; and
7. Modify the annual rate adjustment formula to “Trash CPI +1 percent.”
OPTION B
1. Extend trash contract to a new 10-year term contract, with a 5-year extension that SHALL be offered, provided that Athens is in material compliance with all requirements (see exact language below);
2. Extend the Street Sweeping & Maintenance contract to same term as trash contract in #1;
3. Implement a 53.25 percent extraordinary rate adjustment, spread over three years;
4. Provide $40,000 to City for permanent decorative lighting downtown;
5. Implement a SB1383 program for all green barrels & provide other SB1383 compliance (waste City of Hermosa Beach Page 9 of 15 Printed on 10/21/2022 powered by Legistar™1043
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characterizations, route audits, reporting assistance, site visits, etc.);
6. Modify the diversion requirement from 50 percent hauler diversion to AB939 CalRecycle compliance;
7. Modify the annual rate adjustment formula to “Trash CPI +1 percent;”
8. Provide $20,000 annually to City by way of annual payments or additional trash/sweeper services; and
9. Provide $10,000 one-time for new fabricated lids for the City public receptacles.
DRAFT EXTENSION TERM LANGUAGE
“Upon at least five (5) years before the end of the initial Term, City shall offer Contractor, in writing, a five (5) year extension to the initial Term of this Agreement, with the extension period beginning January 1, 2032 to December 31, 2036, (the “Extension Term”); provided that Contractor is in material compliance with all requirements of this Agreement as of the time of such extension offer.
In addition, upon at least ninety (90) days prior to the end of the initial term, City shall offer Contractor, in writing, a five (5)-year extension to the previously offered & accepted “Extension Term” of this Agreement, with each additional extension period beginning January 1st of the year immediately following the end of the previous extension period; provided that Contractor is in material compliance with all requirements of this Agreement, and provided that the Hermosa Beach standard monthly residential customer rate is below, or within 10 percent, of the average standard monthly residential customer rate in the surrounding area, as of the time of such extension offer.”
OPTION C
1. Extend trash contract to a new 10-year rolling contract, that cannot be triggered for five years;
2. If trigger is ever given, three percent of the 10 percent City Fee will be held back;
3. Extend the Street Sweeping & Maintenance contract to same as trash contract in #1;
4. Implement a 47 percent extraordinary rate adjustment, spread over five years;
5. Provide a one-time $200,000 up-front payment to the City;
6. Implement a SB1383 program for all green barrels & provide other SB1383 compliance (waste characterizations, route audits, reporting assistance, site visits, etc.);
7. Modify the diversion requirement from 50 percent hauler diversion to AB939 CalRecycle compliance; and
8. Modify the annual rate adjustment formula to “Trash CPI +1 percent.” Past Council Actions
Meeting Date Description
October 12, 2010 Approved Agreement with Athens Services for Street sweeping and cleaning services
March 26, 2013 Approved First Amendment to street sweeping agreement with Athens Services extending term
March 26, 2013 Approved Franchise Agreement with Athens for Solid Waste Collection Services
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Staff Report
REPORT 22-0666 Meeting Date Description
October 12, 2010 Approved Agreement with Athens Services for Street sweeping and cleaning services
March 26, 2013 Approved First Amendment to street sweeping agreement with Athens Services extending term
March 26, 2013 Approved Franchise Agreement with Athens for Solid Waste Collection Services
September 17, 2018 Approved First Amendment to Agreement for Solid Waste Services September 25, 2018 Approved Second Amendment to Agreement for Street sweeping and cleaning services
September 10, 2019 Approved special rate increase for organic services per AB1826 May 10, 2022 Considered proposals for amended and extended agreements Analysis:
At its May 10, 2022 meeting, City Council considered Athens’ proposal options and, after a robust discussion, directed staff to proceed with negotiations. During these negotiations, Council suggested a number of additional services for possible inclusion in the proposal. Staff worked with Athens to include these services and others to address various community concerns expressed over the years in new draft amendments for solid waste and street sweeping services.
Below is a list of the various proposal elements, detailing both elements from the original proposals and the additional items discussed by Council and staff. This revised proposal combines elements of original proposal options A and B, including benefits to the City. Most significantly, it captures most of the benefits of option B but with the finite term of ten years as offered in option A. The proposed term extensions included with this proposal would be optional and would only be exercised upon mutual agreement of the City and Athens. This would allow the Council more flexibility to decide between allowing the agreement to expire or extending for a range of additional smaller terms should it chose to do so.
Basic agreement elements
The following key elements were carried over from the original proposals with some variations:
· The term would be a flat 10 years but with three optional extensions of three to five years each. This is a variation on the 10-year flat term proposed in Option A; · The rate adjustment would be 45 percent for residential customers and 54.9 percent for commercial customers. This is equivalent to the flat 52 percent increase proposed in Option A and was an optional scenario discussed with Athens during initial proposal talks. These increases would be spread out over three years, beginning January 2023 (see chart below City of Hermosa Beach Page 11 of 15 Printed on 10/21/2022 powered by Legistar™1045
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which also assumes a 3.5 percent annual CPI adjustment); · A one-time upfront “Community Investment” payment of $100,000 to the City. This could be used as desired by the City or alternatively converted into additional ongoing services; · Implement a comprehensive organics recycling program in compliance with SB1383. This language has been reviewed and revised by the City Attorney and solid waste consultant to ensure it is accurate and sufficient to help accomplish the City’s compliance; · Modify the current minimum 50 percent diversion requirement to instead guarantee compliance with AB939 (the California minimum waste diversion law); and · Modify the annual rate adjustment formular to Trash CPI +1 percent.
Projection and Comparison of 64-gallon Residential Rates Over Five Years FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27
Inglewood $18.16 $18.88 $19.64 $20.43 $21.24
Manhattan Beach 19.77 20.76 21.80 22.89 24.03
Hermosa Beach (Revised Proposal,
assuming 3.5% CPI annually)
20.46 24.19 28.62 29.62 30.64
Hawthorne 24.82 25.82 26.85 27.92 29.04
Redondo Beach 25.48 28.16 29.14 30.16 31.22
Lawndale 28.55 29.69 30.88 32.11 33.40
Rancho Palos Verdes 34.88 36.28 37.73 39.24 40.81
Torrance 35.46 36.88 38.36 39.89 41.49
Culver City 48.63 53.49 54.83 56.20 56.20
Additional elements
The following additional elements include items suggested by Council at its May 10, 2022 meeting, as well as a few items that staff included to address recurring issues mentioned by Council, staff, or the community:
· Adjusting the street sweeping service windows from four hours to three hours. Athens is confident that the adjustment can be made smoothly and has also proposed shifting some incidental Friday routes to Monday-Thursday routing. Overall, there would be two hours less sweeping in residential areas Monday-Thursday and none on Friday; · Eliminate the need for the street sweeper to back up on the south end of the Strand. This has already been accomplished by Athens based on discussion at the May 10,2022 meeting; · Additional weekly porter service that would address cleaning of Hermosa Avenue from City of Hermosa Beach Page 12 of 15 Printed on 10/21/2022 powered by Legistar™1046
Staff Report
REPORT 22-0666
· Additional weekly porter service that would address cleaning of Hermosa Avenue from Herondo Avenue to 22nd Street, Pier Avenue from the Plaza to PCH, and the Parking Structure (Lot C). This would entail an Athens staff member walking these areas one day per week cleaning weeds and debris and directing other Athens staff to areas that need special attention and cleaning, as appropriate;
· One additional daily service of public trash cans at Valley Park, South Park, and Clark Field on weekends and during Summer;
· One additional monthly pressure wash of the Strand wall; · Increase the number of illegal dumped item service requests by City staff from four per month to 20 per month;
· Explicit language guaranteeing that all solid waste Athens transports would be sent to a material recovery facility for manual sorting to ensure maximum waste diversion and recycling; · The transfer of ownership of the fenced trash enclosures in Parking Lots A and B to the City; and
· Revised the list of Community Support recipients to reflect the removal of the Murals Projects and the Sunset Concerts and addition of $5,000 for holiday decorations.
Aside from the items mentioned above, there are minor language revisions and clarifications included in the draft amendments (Attachment 5). The revisions were reviewed by the City Attorney, as well as the City’s solid waste consultant.
Should Council accept the revised proposal, staff would immediately begin coordinating with Athens to distribute the required Proposition 218 Notice regarding the proposed rate adjustments (Attachment 6). The City conducts this process in an abundance of caution and to the extent privately-provided solid waste service may be subject to Proposition 218. This process involves sending notice of the proposed new rates to affected property owners and customers at least 45 days in advance of a public hearing on the rates, to be scheduled for a coming Council meeting. Prior to or at the hearing, owners and customers can submit written protests against the rates. At the hearing, the protests are tabulated and, if protests are received from less than a majority of affected parcels, the Council may adopt the new rates.
Should negotiations prove unsuccessful, the City could choose to begin a Request for Proposals (RFP) process. This process should begin expeditiously to accommodate the potential 12-month minimum timeline. Should the RFP process be pursued, R3 recommends the City secure at least six additional months of service with Athens to ensure uninterrupted service and a more efficient transition to a potential new hauler.
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Staff Report
REPORT 22-0666
General Plan Consistency:
This report and associated recommendations have been evaluated for their consistency with the City’s General Plan. Relevant policy is listed below:
Sustainability and Conservation Element
Goal 6. Hermosa Beach is a low or zero-waste community with convenient and effective options for recycling, composting, and diverting waste from landfills.
Policy:
· 6.1 Franchise Agreements. Ensure waste franchise agreements and program offerings provide progressively higher rates of waste diversion.
Fiscal Impact:
Issuing RFPs would require an upfront cost of approximately $200,000-$300,000 hire a specialist firm to develop the RFPs and complete the proposal process. These costs would be reimbursed by the winning proposer should the City choose to make this a requirement of the RFP. The FY 2021-22 budget included $300,000 for this effort, along with estimated revenue of $300,000 for Reimbursement of the Solid Waste Management and Street Sweeping RFPs. Both would be reappropriated to the FY 2022-23 budget if Council directs staff to pursue an RFP.
The City currently pays Athens approximately $544,000 annually for street sweeping and cleaning services and, should the agreement be extended, this rate would continue unchanged except for the fixed three percent annual adjustment. Other payments to the City described in the proposal options or resulting changes to franchise fees would be determined after negotiations.
Should City Council direct staff to proceed with Proposition 218 notification regarding the new rates, $10,000 would be appropriated from AB939 Funds, account 117-5301-4201, to fund the cost of mailing Proposition 218 Notices.
Attachments:
1. Agreement for Street Sweeping and Cleaning Services
2. Agreement for Solid Waste Services
3. Resolution 19-7210
4. R3 Analysis of Athens’ Proposals
5. Draft Amendments
6. Draft Proposition 218 Notice
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Staff Report
REPORT 22-0666
7. Link to October 12, 2010 City Council Staff Report
8. Link to March 26, 2013 City Council Staff Report
9. Link to September 17, 2018 City Council Staff Report
10.Link to September 25, 2018 City Council Staff Report
11.Link to September 10, 2019 City Council Staff Report
12.Link to May 10, 2022 City Council Staff Report
Respectfully Submitted by: Douglas Krauss, Environmental Programs Manager Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Mike Jenkins, City Attorney
Approved: Suja Lowenthal, City Manager
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AREA previous
frequency
revised
frequency per season SCHEDULE MONTHS COST COST PER
FREQUENCY
With 5% Discount ANNUAL COST/BUDGET
w/5% Discount 31 Winter Schedule: Monday of Each Week October through May 42 Summer Schedule: Monday and
Thursday of Each Week May through
September 0 ADD: Scrubber 22x Summer Schedule: Saturday of each week May through September DOWNTOWN
Hermosa Avenue from 15th Ct. to 9th St. on the west side (performed/overlap per street sweeping & steam cleaning contract) 4 26 2 Times per month January through December 1x/week Summer Schedule May
through
September 1x/week Winter Schedule October through
April DOWNTOWN
Hermosa Avenue from 14th St. to 8th St. on the east side (performed/overlap per street sweeping & steam cleaning contract) 4 26 2 Times per month January through December ENHANCED DOWNTOWN
Hermosa Avenue from 14th St. to 8
th St. on the east side
(performed/overlap per street
sweeping & steam cleaning
contract) 0 ADD: Scrubber
22x Summer
2 Times per month May through
September DOWNTOWN
11th St. From Hermosa Ave to the Strand, including Beach Dr., south side 4 6
6 Times Annually, every other month
January, March,
May, July,
September, November ENHANCED DOWNTOWN
11th St. From Hermosa Ave to the
Strand, including Beach Dr., south side
0 ADD: Scrubber
1x per Month Monthly January through December DOWNTOWN
All other areas 4 6 6 Times Annually Months to be Determined ENHANCED STRAND The Entire Strand 0 Scrubber1x/week (52) Weekly January through December STRAND The Entire Strand 0 12 12 times annually January through December ENHANCED PIER AVENUE from Hermosa Avenue to Valley
Drive (performed/overlap per
street sweeping & steam cleaning
contract)
Replace Steam
Cleaning
Scrubber 1x/week 52x Weekly January through December
FREQUENCY SCHEDULE FOR STEAM CLEANING AND SCRUBBER SERVICES - FY 18/19. 3% increase
CITY OF HERMOSA BEACH
PUBLIC WORKS DEPARTMENT Account DOWNTOWN
Pier Plaza
24 ENHANCED DOWNTOWN Hermosa Avenue from 15th Ct. to 9
th St. on the west side
(performed/overlap per street
sweeping & steam cleaning
contract) 0 ADD: Scrubber 52X
Attachment 1
1137
ENHANCED PIER AVENUE Upper Pier Avenue from Valley
Drive to Pacific Coast Highway
(performed per street sweeping
contract) 0 Replaces Steam
Cleaning
Scrubber 1x/Month
(12x/yr)
Monthly January through December SKATE TRACK AREA 12 12 1 st week of the month
January through December JARVIS MEMORIAL AREA 12 24 2 Times per month January through December PARKING STRUCTURE AREA
(Lot C) 0 6 Steam 6 Times per Year
Every other Month PARKING STRUCTURE AREA
(Lot C) 0 ADD: Scrubber 1x/Mo. (12x) Monthly January through December PARKING STRUCTURE AREA Stairwells 52 52 Friday of Each Week
January through December COMMERCIAL AREAS CITYWIDE 4 6
1 st week of the Month,
6 Times Annually Months to be Determined PARKING LOT A as needed 4 4 Times Annually Months to be Determined 0 ADD:Scrubber 22x Summer Schedule
1x/week May through
September 0 ADD: Scrubber 7x Winter Schedule 1x/month October through April PARKING LOT B as needed 4 4 Times Annually Months to be Determined ENHANCED Lot B/13th Ct. 0 ADD: Scrubber Summer (1x/week, 22x) and Winter (1x/mo.,7x) Summer and Winter Schedules 2 Winter Schedule: Quarterly October through March
6 Summer Schedule: Monthly April through
September 2 Winter Schedule: Quarterly
October through March
6 Summer Schedule: Monthly April through
September CITYWIDE 0 As Needed, Not
to Exceed 40 hours
January through December Trash Enclosures (performed per street sweeping contract) 108 108 Twice Weekly January through December AVIATION BOULEVARD (performed per street sweeping contract)
PACIFIC COAST HIGHWAY
(performed per street sweeping
contract) 4 ENHANCED Parking Lot A and
Beach Dr 13th St to 11th St.
1138
AREA REFERENCE # RATE With 3% Increase With 5% Discount COST/MONTH Strand Sweep 001-3104-4201 City Pier Maintenance 001-6101-4201 Morning Porter Service 001-3301-4201 Afternoon Porter Service 001-3301-4201 Street Sweep 001-3104-4201 NEW Enhanced Porter 001-3301-4201 Clean/Sweep Upper Pier 001-3301-4201 Parking Structure 001-3304-4201 SWEEPING RATES - FY 18/19 Downtown Sweep 001-3301-4201 1139
1140
AGREEMENT
BETWEEN
CITY OF HERMOSA BEACH
AND
ARAKELIAN ENTERPRISES, INC. DBA ATHENS SERVICES
FOR
INTEGRATED SOLID WASTE
MANAGEMENT SERVICES
* * *
May 24, 2013
1141
May 24, 2013 i City of Hermosa Beach
AGREEMENT
BETWEEN
CITY OF HERMOSA BEACH
AND
ARAKELIAN ENTERPRISES, INC. dba ATHENS SERVICES
FOR
INTEGRATED SOLID WASTE
MANAGEMENT SERVICES
TABLE OF CONTENTS
Page
RECITALS 1
ARTICLE 1.................................................................................................................................................3 DEFINITIONS..........................................................................................................................................................................3
1.1 AB 939......................................................................................................................................................................3
1.2 AFFILIATE.................................................................................................................................................................3
1.3 BILLINGS...................................................................................................................................................................4
1.4 BIN............................................................................................................................................................................4
1.5 BIN SERVICE .............................................................................................................................................................4
1.6 BULKY ITEMS ............................................................................................................................................................4
1.7 CALRECYCLE............................................................................................................................................................5
1.8 CAN ..........................................................................................................................................................................5
1.9 CAN SERVICE ............................................................................................................................................................5
1.10 CART....................................................................................................................................................................5
1.11 CITY .....................................................................................................................................................................5
1.12 CITY MANAGER...................................................................................................................................................5
1.13 COLLECT/COLLECTION ......................................................................................................................................5
1.14 COMMERCIAL ......................................................................................................................................................6
1.15 COMMERCIAL PREMISES......................................................................................................................................6
1.16 CONTRACTOR......................................................................................................................................................6
1.17 CONTRACTOR'S PROPOSAL .................................................................................................................................6
1.18 CONTRACTOR COMPENSATION ..........................................................................................................................6
1.19 CONSTRUCTION AND DEMOLITION DEBRIS .......................................................................................................7
1.20 CONTAINER .........................................................................................................................................................7
1.21 CPI.......................................................................................................................................................................7
1.22 CUSTOMER...........................................................................................................................................................7
1.23 DISPOSE/DISPOSAL.............................................................................................................................................7
1.24 DISPOSAL SITE(S).................................................................................................................................................7
1.25 DIVERSION...........................................................................................................................................................7
1.25A DOWNTOWN AREA .............................................................................................................................................8
1.25B DOWNTOWN COMPACTOR .................................................................................................................................8
1.25C DOWNTOWN COMPACTOR FACILITY .................................................................................................................8
1.25D DOWNTOWN COMPACTOR FACILITY SERVICE AREA.........................................................................................8
1.26 ELECTRONIC WASTE.............................................................................................................................................8
1.27 ENVIRONMENTAL LAWS .....................................................................................................................................8 1142
May 24, 2013 ii City of Hermosa Beach
1.28 FACILITY ..............................................................................................................................................................9
1.28A FOOD WASTE.......................................................................................................................................................9
1.29 GREEN WASTE.....................................................................................................................................................9
1.30 GREEN WASTE PROCESSING FACILITY................................................................................................................9
1.31 GROSS RECEIPTS ..................................................................................................................................................9
1.32 HAZARDOUS SUBSTANCE..................................................................................................................................10
1.33 HAZARDOUS WASTE.........................................................................................................................................10
1.34 HOUSEHOLD HAZARDOUS WASTE (“HHW”).................................................................................................11
1.35 MATERIALS RECOVERY FACILITY (“MRF”) .....................................................................................................11
1.36 MULTI-FAMILY DWELLING...............................................................................................................................11
1.37 PERSON ..............................................................................................................................................................11
1.38 PREMISES ...........................................................................................................................................................11
1.39 RATE YEAR ........................................................................................................................................................11
1.40 RECYCLE/RECYCLING.......................................................................................................................................11
1.41 RECYCLABLE MATERIALS..................................................................................................................................12
1.42 REFUSE...............................................................................................................................................................12
1.43 RESIDENTIAL......................................................................................................................................................12
1.44 RESIDENTIAL PREMISES.....................................................................................................................................12
1.45 ROLL-OFF BOX ...................................................................................................................................................12
1.46 SINGLE FAMILY DWELLING...............................................................................................................................13
1.47 SOLID WASTE ....................................................................................................................................................13
1.48 SOLID WASTE HANDLING SERVICES.................................................................................................................13
1.49 SOURCE SEPARATED..........................................................................................................................................13
1.50 STATE.................................................................................................................................................................13
1.51 TRANSFORMATION............................................................................................................................................13
1.52 TRANSFER STATION...........................................................................................................................................14
1.53 WASTE GENERATOR..........................................................................................................................................14 ARTICLE 2...............................................................................................................................................15 GRANT AND ACCEPTANCE OF FRANCHISE.............................................................................................................15
2.1 GRANT AND ACCEPTANCE OF FRANCHISE, INDEMNITY OF AWARD ...................................................................15
2.2 ENFORCEMENT OF EXCLUSIVITY............................................................................................................................15
2.3 EFFECTIVE DATE ....................................................................................................................................................16
2.4 TERM OF AGREEMENT............................................................................................................................................16
2.5 CITY’S OPTION TO EXTEND TERM..........................................................................................................................16
2.6 REPRESENTATIONS AND WARRANTIES OF CONTRACTOR ....................................................................................16
2.7 CONDITIONS TO EFFECTIVENESS OF AGREEMENT.................................................................................................18
2.8 DELEGATION OF AUTHORITY ................................................................................................................................18
2.9 LIMITATIONS TO SCOPE..........................................................................................................................................18
2.10 CITY'S RIGHT TO DIRECT CHANGES..................................................................................................................20
2.10.1 General .....................................................................................................................................................20
2.10.2 New Diversion Programs.........................................................................................................................21
2.11 OWNERSHIP OF SOLID WASTE ..........................................................................................................................21
2.12 CONTRACTOR STATUS.......................................................................................................................................22
2.13 CONTRACTOR AUTHORIZATION.......................................................................................................................22
2.14 PERMITS AND LICENSES ....................................................................................................................................23 ARTICLE 3...............................................................................................................................................24 FEES PAID TO THE CITY ...................................................................................................................................................24
3.1 CONTRACTING FEE ................................................................................................................................................24
3.2 COLLECTOR FEE .....................................................................................................................................................24 1143
May 24, 2013 iii City of Hermosa Beach
3.3 ADMINISTRATIVE FEE ............................................................................................................................................24
3.4 AB 939 FEE.............................................................................................................................................................24
3.5 TIMING AND SUBMITTAL OF MONTHLY FEE PAYMENTS ......................................................................................25
3.6 FUTURE FEES ..........................................................................................................................................................25 ARTICLE 4...............................................................................................................................................26 DIRECT SERVICES ..............................................................................................................................................................26
4.1 REFUSE....................................................................................................................................................................26
4.1.1 General..........................................................................................................................................................26
4.1.2 Residential Cart/Can Refuse Collection........................................................................................................26
4.1.3 Refuse Cart/Can Overage .............................................................................................................................27
4.1.4 Walk-Out Service..........................................................................................................................................27
4.1.5 Bin Refuse Collection ....................................................................................................................................28
4.1.6 Commercial Premises Cart Service...............................................................................................................28
4.1.7 Overflowing Bins and Carts.........................................................................................................................29
4.1.8 Temporary Bin Service..................................................................................................................................29
4.1.9 Scout Vehicles...............................................................................................................................................30
4.1.10 Bin Push-out Service................................................................................................................................30
4.1.11 Locking Bins.............................................................................................................................................30
4.1.12 Roll-off Box Service..................................................................................................................................31
4.1.13 Extra Assistance in High Solid Waste Generating Commercial Areas....................................................31
4.1.14 Shared Solid Waste Downtown Compactor Facility and Porter Service .................................................31
4.1.15 On-Call Bulky Item Pickup......................................................................................................................35
4.1.16 Bulky Item Diversion ...............................................................................................................................36
4.1.17 Disposal of Electronic and Other Special Wastes.....................................................................................36
4.1.18 Optional On-Call Household Hazardous Waste Collection and Disposal...............................................36
4.1.19 Restaurant Food Waste Program Option.................................................................................................37
4.1.20 Document Shredding ...............................................................................................................................37
4.2 RECYCLING.............................................................................................................................................................38
4.2.1 Residential Cart/Can Recycling Collection...................................................................................................38
4.2.2 Commercial Recyclables Collection...............................................................................................................38
4.2.2.1 Source Separated Recycling .....................................................................................................................38
4.2.2.2 Downtown Compactor Facility Solid Waste Processing..........................................................................39
4.2.2.3 Bin and Roll-Off Waste Processing..........................................................................................................39
4.2.3 Warning Notice.............................................................................................................................................39
4.2.4 Marketing and Sale of Recyclable Materials.................................................................................................40
4.2.5 Minimum Recycling Requirements..............................................................................................................40
4.2.6 Construction and Demolition Debris Diversion...........................................................................................40
4.2.7 Battery Recycling Drop-Off..........................................................................................................................41
4.3 GREEN WASTE PROGRAM......................................................................................................................................41
4.3.1 Single Family Green Waste Collection .........................................................................................................41
4.3.2 Holiday Tree Collection Program .................................................................................................................42
4.3.3 End Uses for Green Waste............................................................................................................................43
4.3.4 Backyard Compost Program .........................................................................................................................43
4.3.5 Free Compost Give-A-Way Events...............................................................................................................43
4.3.6 Free City Compost.........................................................................................................................................44
4.3.7 Residential Food Waste Pilot Program .........................................................................................................44
4.4 CONTAINER SELECTION, DISTRIBUTION AND EXCHANGES..................................................................................44
4.4.1 Containers.....................................................................................................................................................44
4.4.1.1 Residential Container Distribution..........................................................................................................44
4.4.1.2 Removal of Existing Containers...............................................................................................................45
4.4.1.3 Container Design Requirements..............................................................................................................46
4.4.1.4 Capacity....................................................................................................................................................46 1144
May 24, 2013 iv City of Hermosa Beach
4.4.1.5 Container Handles ...................................................................................................................................46
4.4.1.6 Container Lid ...........................................................................................................................................46
4.4.1.7 Container Colors ......................................................................................................................................47
4.4.1.8 Container Markings.................................................................................................................................47
4.4.2 Container Performance Requirements..........................................................................................................48
4.4.2.1 Cart Load Capacity...................................................................................................................................48
4.4.2.2 Container Durability................................................................................................................................48
4.4.2.3 Chemical Resistant...................................................................................................................................49
4.4.2.4 Stability and Maneuverability .................................................................................................................49
4.4.2.5 Lid Performance .......................................................................................................................................49
4.4.2.6 Reparability ..............................................................................................................................................50
4.4.3 Container Ownership and Maintenance Responsibilities.............................................................................50
4.4.4 Bins...............................................................................................................................................................50
4.4.5 Roll-off Boxes ................................................................................................................................................51
4.5 CITY SERVICES........................................................................................................................................................52
4.5.1 City Facilities Collection...............................................................................................................................52
4.5.2 City Litter Containers...................................................................................................................................53
4.5.3 School Facilities Collection............................................................................................................................54
4.5.4 Special Events...............................................................................................................................................55
4.5.5 Emergency Collection and Disposal Service.................................................................................................55
4.5.6 Abandoned Item Collection...........................................................................................................................55
4.5.7 Large Venue Event Assistance, Event Recycling .........................................................................................56
4.5.8 Litter Boxes for Non-City-Sponsored Events................................................................................................56
4.5.9 Code Enforcement Assistances......................................................................................................................56
4.5.10 Capacity Guarantee..................................................................................................................................56
4.5.11 Toy Drive Assistance ...............................................................................................................................56
4.5.12 South Bay Work Investment Board..........................................................................................................56
4.5.13 Dog Waste Program.................................................................................................................................57
4.6 OPERATIONS...........................................................................................................................................................57
4.6.1 Schedules.......................................................................................................................................................57
4.6.1.1 Collection Days and Hours......................................................................................................................57
4.6.1.2 Review of Schedules and Routing ............................................................................................................57
4.6.1.3 Missed Pickups.........................................................................................................................................58
4.6.2 Vehicles.........................................................................................................................................................58
4.6.3 Litter Abatement...........................................................................................................................................62
4.6.4 Personnel.......................................................................................................................................................62
4.6.5 Identification Required..................................................................................................................................64
4.6.6 Fees and Gratuities .......................................................................................................................................64
4.6.7 Non-Discrimination......................................................................................................................................64
4.6.8 Routing and Coordination With Street Sweeping Services..........................................................................65
4.6.9 Report of Accumulation of Solid Waste; Unauthorized Dumping ...............................................................65
4.7 TRANSPORTATION OF SOLID WASTE.....................................................................................................................65
4.8 APPROVED FACILITIES ...........................................................................................................................................66
4.9 STATUS OF DISPOSAL SITE .....................................................................................................................................66
4.10 DEDICATED ROUTES..........................................................................................................................................67
4.11 SERVICE EXCEPTIONS; HAZARDOUS WASTE NOTIFICATIONS .........................................................................67
4.12 DOWNTOWN COMPACTOR FACILITY DEVELOPMENT......................................................................................67 ARTICLE 5...............................................................................................................................................70 OTHER SERVICES ...............................................................................................................................................................70
5.1 CUSTOMER SERVICE ...............................................................................................................................................70
5.1.1 Local Office, Response Time..........................................................................................................................70
5.1.2 Complaint Documentation............................................................................................................................71 1145
May 24, 2013 v City of Hermosa Beach
5.1.3 Resolution of Customer Complaints .............................................................................................................71
5.1.4 Service Liaison/Route Supervisor .................................................................................................................72
5.2 EDUCATION AND PUBLIC AWARENESS .................................................................................................................72
5.2.1 General..........................................................................................................................................................72
5.2.2 Implementation and On-going Education Requirements.............................................................................72
5.2.3 Contractor Representative ............................................................................................................................74
5.2.4 Community Events.......................................................................................................................................74
5.2.5 School Outreach ............................................................................................................................................75
5.2.6 Business Outreach ........................................................................................................................................75
5.2.7 Multi-Family Outreach ................................................................................................................................76
5.2.8 Facility Tours................................................................................................................................................76
5.2.9 Free Mailing of City Materials .....................................................................................................................76
5.2.10 Mighty Mike Mascot................................................................................................................................77
5.2.11 Presentations to City Council ..................................................................................................................77
5.2.12 Guest Speaker and Writing Assistance....................................................................................................77
5.3 WASTE GENERATION/CHARACTERIZATION STUDIES..........................................................................................77
5.4 Community Support..........................................................................................................................................77
5.6 Neighborhood Safety Watch...............................................................................................................................78 ARTICLE 6...............................................................................................................................................79 CONTRACTOR COMPENSATION AND RATES.........................................................................................................79
6.1 GENERAL................................................................................................................................................................79
6.2 INITIAL RATES ........................................................................................................................................................79
6.3 SCHEDULE OF FUTURE ADJUSTMENTS...................................................................................................................79
6.3.1 Request Submittal.........................................................................................................................................79
6.3.2 Approval Process...........................................................................................................................................79
6.4 METHOD OF ADJUSTMENTS ...................................................................................................................................80
6.4.1 General..........................................................................................................................................................80
6.4.2 Cost Components for Rate Adjustment Indices............................................................................................80
6.4.3 Rate Adjustment Steps .................................................................................................................................81
6.4.4 Green Waste Rate Adjustment Upon Closure of Puente Hills.....................................................................82
6.5 EXTRAORDINARY ADJUSTMENTS...........................................................................................................................82
6.6 REDELIVERY/RETURN TRIP FEE ............................................................................................................................83
6.7 CUSTOMER BILLING AND CONTRACTOR COMPENSATION ...................................................................................84
6.7.1 Residential Customers Receiving Individual-Unit Service............................................................................84
6.7.2 Permanent Bin and Roll-Off Box Customers................................................................................................84
6.7.3 Temporary Services Billing...........................................................................................................................84
6.7.4 Contractor’s Invoices ....................................................................................................................................84
6.7.5 Billing Disputes............................................................................................................................................85
6.7.6 Delinquent Accounts ....................................................................................................................................85
6.7.7 Customer Billing Adjustments.....................................................................................................................86
6.7.8 Exemption from Service................................................................................................................................86
6.7.9 Active Military Rate Reductions ..................................................................................................................87
6.7.10 Senior Low-Income Rate Reduction .........................................................................................................87 REVIEW OF SERVICES AND PERFORMANCE............................................................................................................88
7.1 PERFORMANCE REVIEW MEETING.........................................................................................................................88
7.2 PERFORMANCE SATISFACTION SURVEY ................................................................................................................89
7.3 ROUTE AUDIT.........................................................................................................................................................90 ARTICLE 8...............................................................................................................................................92 RECORDS, REPORTS AND INFORMATION REQUIREMENTS.............................................................................92
8.1 GENERAL................................................................................................................................................................92 1146
May 24, 2013 vi City of Hermosa Beach
8.2 RECORDS ................................................................................................................................................................92
8.2.1 General..........................................................................................................................................................92
8.2.2 Financial Records..........................................................................................................................................93
8.2.3 Solid Waste Records......................................................................................................................................93
8.2.4 CERCLA Defense and Disposal Records......................................................................................................94
8.2.5 Other Programs' Records .............................................................................................................................95
8.2.6 Audit.............................................................................................................................................................95
8.2.7 Payments and Refunds .................................................................................................................................96
8.3 REPORTS .................................................................................................................................................................96
8.3.1 Report Formats and Schedule .......................................................................................................................96
8.3.2 Monthly Reports...........................................................................................................................................97
8.3.3 Annual Report ..............................................................................................................................................97
8.3.4 Financial Report............................................................................................................................................98
8.4 REPORTING ADVERSE INFORMATION....................................................................................................................98
8.5 RIGHT TO INSPECT RECORDS .................................................................................................................................99
8.6 FAILURE TO REPORT...............................................................................................................................................99 ARTICLE 9.............................................................................................................................................100 INDEMNIFICATION, INSURANCE AND BOND ......................................................................................................100
9.1 DEFENSE OF AGREEMENT ....................................................................................................................................100
9.2 INDEMNIFICATION ...............................................................................................................................................100
9.3 HAZARDOUS SUBSTANCES INDEMNIFICATION ...................................................................................................101
9.4 AB 939 INDEMNIFICATION AND GUARANTEE....................................................................................................103
9.5 INSURANCE...........................................................................................................................................................103
9.6 FAITHFUL PERFORMANCE BOND.........................................................................................................................109
9.7 FORFEITURE OF PERFORMANCE BOND ................................................................................................................109
9.8 PERFORMANCE SECURITY BEYOND SERVICE TERM ............................................................................................110 ARTICLE 10...........................................................................................................................................111 CITY'S RIGHT TO CONTRACT WITH THIRD PARTIES TO PERFORM FRANCHISED SERVICES...........111 ARTICLE 11...........................................................................................................................................112 DEFAULT, REMEDIES AND LIQUIDATED DAMAGES..........................................................................................112
11.1 EVENTS OF DEFAULT.......................................................................................................................................112
11.2 RIGHT TO TERMINATE UPON DEFAULT AND RIGHT TO SPECIFIC PERFORMANCE .......................................114
11.3 LIQUIDATED DAMAGES...................................................................................................................................115
11.4 EXCUSE FROM PERFORMANCE ........................................................................................................................120
11.4.1 Force Majeure.........................................................................................................................................120
11.4.2 Labor Unrest ..........................................................................................................................................120
11.4.3 Procedures In Event of Excused Performance........................................................................................121
11.5 NOTICE, HEARING AND APPEAL OF CITY BREACH........................................................................................122
11.6 ASSURANCE OF PERFORMANCE......................................................................................................................122 ARTICLE 12...........................................................................................................................................123 MISCELLANEOUS PROVISIONS ..................................................................................................................................123
12.1 RELATIONSHIP OF PARTIES .............................................................................................................................123
12.2 COMPLIANCE WITH LAW ................................................................................................................................ 123
12.3 GOVERNING LAW............................................................................................................................................123
12.4 JURISDICTION...................................................................................................................................................123
12.5 ASSIGNMENT ...................................................................................................................................................124
12.6 CONTRACTING OR SUBCONTRACTING............................................................................................................126
12.7 BINDING ON ASSIGNS......................................................................................................................................126 1147
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12.8 COOPERATION IN PREPARATION FOR TERMINATION OR EXPIRATION OF CONTRACT .................................126
12.9 PARTIES IN INTEREST.......................................................................................................................................127
12.10 WAIVER ...........................................................................................................................................................127
12.11 CONTRACTOR'S INVESTIGATION.....................................................................................................................128
12.12 CONDEMNATION.............................................................................................................................................128
12.13 NOTICE ............................................................................................................................................................128
12.14 REPRESENTATIVES OF THE PARTIES ................................................................................................................129
12.15 CITY FREE TO NEGOTIATE WITH THIRD PARTIES ...........................................................................................129
12.16 COMPLIANCE WITH MUNICIPAL CODE ..........................................................................................................129
12.17 PRIVACY...........................................................................................................................................................130
12.18 PROPRIETARY INFORMATION, PUBLIC RECORDS............................................................................................130
12.19 ENTIRE AGREEMENT .......................................................................................................................................130
12.20 SECTION HEADINGS ........................................................................................................................................130
12.21 REFERENCES TO LAWS AND OTHER AGREEMENTS ........................................................................................131
12.22 INTERPRETATION.............................................................................................................................................131
12.23 AGREEMENT ....................................................................................................................................................131
12.24 SEVERABILITY ..................................................................................................................................................131
12.25 EXHIBITS ..........................................................................................................................................................131
12.26 ATTORNEYS’ FEES............................................................................................................................................131 Exhibits
1. Reserved
2. Initial Maximum Rates
3. Example Rate Adjustment Formula
4. City Litter and Recycling Collection Container Map
5. Corporate Guarantee
6. Contractor’s Faithful Performance Bond
7. Reserved
8. Initial Scout Service Customers
9. Downtown Area
10. Areas Where Automated Service Not Feasible (Can Service Areas)
11. Downtown Compactor Facility Service Area
12. Notary Certification
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AGREEMENT
This Agreement for Integrated Solid Waste Management Services (hereinafter the “Agreement”) is entered into this ___ day of ________, 2013, by and between the City of Hermosa Beach, California, (“City”) and Arakelian Enterprises, Inc. dba Athens Services (“Contractor”), for the collection, transportation, recycling, processing, and disposal of solid waste and other services related to meeting the goals and requirements of the California Integrated Waste Management Act.
RECITALS
WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989 (“AB 939”) (California Public Resources Code Section 49100 et seq.), has declared that it is in the public interest to authorize and require local agencies to make adequate provisions for solid waste handling within their jurisdictions; and,
WHEREAS, pursuant to California Public Resources Code Section 49300 and 49500 through 49524 inclusive, the City has determined that the public health, safety, and well-being require that an exclusive franchise be awarded to a qualified company for the collection, transfer and transportation, recycling, processing, and disposal of solid waste and other services related to meeting the diversion goals required by AB 939, and other requirements of the California Integrated Waste Management Act; and, WHEREAS, City declares its intention of maintaining reasonable rates and quality service related to the collection, transfer and transportation, recycling, processing, and disposal of solid waste and other services; and,
WHEREAS, in response to a Request for Proposals, Contractor has submitted a proposal to City and City selected the Contractor on the competitive advantages of that proposal over other proposals received by City; and,
WHEREAS, City and Contractor (“Parties”) hereto desire to enter said Agreement; and, WHEREAS, City and Contractor are mindful of the provisions of the laws governing the safe collection, transport, recycling, processing and disposal of solid waste, including AB 939, the Resource Conservation and Recovery Act ("RCRA"), and the Comprehensive Environmental Response, Compensation and Liability Act 1149
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("CERCLA"). City and Contractor desire to leave no doubts as to their respective roles and to memorialize that by entering into this Agreement, City is not thereby becoming an "arranger" or a "generator" as those terms are used in CERCLA, and that it is Contractor, not City, who is "arranging for" the collection from premises in the City, transport for disposal, composting or other processing, and recycling of municipal solid waste which may contain hazardous substances; and further to confirm that as a material inducement to City entering into this Agreement, Contractor has agreed to fully indemnify City in connection with any claims, losses, liabilities, lawsuits or actions relating to the inadvertent or intentional collection, transportation and/or disposal of hazardous materials that may occur in connection with Contractor’s performance under this Agreement; and,
WHEREAS, Contractor has agreed, as part of this Agreement, acting as an independent contractor to provide such personnel, equipment and supplies as are necessary to ensure City complies with the requirements of Public Resources Code Section 49100, et seq.
NOW, THEREFORE, in consideration of the premises above stated and the terms, conditions, covenants and agreements contained herein, the Parties do hereby agree as follows:
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ARTICLE 1
DEFINITIONS
The terms used in this Agreement shall have the meaning set forth in this Article 1. In the event a term is not defined in this Article 1, then it shall have the meaning set forth in the Hermosa Beach Municipal Code or in Division 30, Part 1, Chapter 2 of the California Public Resources Code (with precedence given to definitions in the Hermosa Beach Municipal Code over conflicting definitions contained in the Public Resources Code). Except as provided in Article 1, words beginning with lower case letters are being used with their common ordinary meanings, not as defined terms. Otherwise, the following capitalized words and terms shall have the following meanings:
1.1 AB 939
"AB 939" means the California Integrated Waste Management Act of 1989 (California Public Resources Code Section 40000 et seq.), as it may be amended from time to time.
1.2 Affiliate
"Affiliate" means all businesses (including corporations, limited and general partnerships and sole proprietorships) which are directly or indirectly related to Contractor by virtue of direct or indirect ownership interest or common management shall be deemed to be "Affiliated with" Contractor and included within the term "Affiliates" as used herein. An Affiliate shall include a business in which Contractor owns a direct or indirect ownership interest, a business which has a direct or indirect ownership interest in Contractor and/or a business which is also owned, controlled or managed by any business or individual which has a direct or indirect ownership interest in Contractor. For purposes of determining whether an indirect ownership interest exists, the constructive ownership provisions of Section 318(a) of the Internal Revenue Code of 1986, as in effect on the date of this Agreement, shall apply; provided, however, that (i) "ten percent (10%)" shall be substituted for "fifty percent (50%)" in Section 318(a)(2)(C) and in Section 318(a)(3)(C) thereof; and (ii) Section 318(a)(5)(C) shall be disregarded. For purposes of determining ownership under this paragraph and constructive or indirect ownership under Section 318(a), ownership interest of less than ten percent (10%) shall be disregarded and percentage interests shall be determined on 1151
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the basis of the percentage of voting interest or value which the ownership interest represents, whichever is greater.
1.3 Billings
"Billings" or “Billing” or “Bill” means the statements of charges provided to Customers for services rendered by Contractor.
1.4 Bin
“Bin” means a metal Container with hinged lids and wheels with a capacity of less than ten (10) cubic yards.
1.5 Bin Service
“Bin Service” means Solid Waste Handling Services in which a Bin is used for the Collection of Solid Waste.
1.6 Bulky Items
“Bulky Items” means Solid Waste that cannot and/or would not typically be accommodated within a Cart including specifically: furniture (including chairs, sofas, mattresses, and rugs); appliances (including refrigerators, ranges, washers, dryers, water heaters, dishwashers, plumbing, small household appliances and other similar items, commonly known as “white goods”); yard debris, Green Waste and small pieces of wood limited to one cubic yard of contained material; Electronic Waste; fluorescent bulbs; household batteries; and clothing. Bulky Items do not include car bodies, tires, Construction and Demolition Debris or items requiring more than two (2) persons to remove. Other items not specifically included or excluded above will be Collected provided that they are not more than eight (8) feet in length, four (4) feet in width, or more than one hundred fifty (150) pounds. In the event a question ever arises as to whether a specific item or category of items meets the definition of Bulky Items, City shall be responsible to determine whether said definition shall apply, which determination shall be final and binding on the Parties. 1152
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1.7 CalRecycle
“CalRecycle” means the State of California’s Department of Resources Recycling and Recovery, and, as this department was structured prior to January 1, 2010, the California Integrated Waste Management Board, or CIWMB.
1.8 Can
“Can” means a plastic Container with a lid and with or without wheels, with a capacity between 30 and 35-gallons, also referred to as a barrel.
1.9 Can Service
“Can Service” refers to Residential service provided in accordance with Section 4.1.2 in which Contractor provides Residential Customers Cans, bags or boxes, for Refuse Collection due to Cart Collection not being feasible.
1.10 Cart
“Cart” means a plastic Container with a hinged lid and wheels serviced by an automated or semi-automated truck with a capacity of no less than 32- and no greater than 101-gallons. Cart also means a 20-gallon Cart provided to Residential Customers at a discounted rate as provided in this Agreement.
1.11 City
"City" means City of Hermosa Beach, California, a municipal corporation, and all the territory lying within the municipal boundaries of City as presently existing or as such boundaries may be modified during the term of this Agreement.
1.12 City Manager
“City Manager” means the City Manager of the City of Hermosa Beach and his or her designee.
1.13 Collect/Collection
"Collect" or "Collection" means to take physical possession, transport, and remove Solid Waste within and from City.
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1.14 Commercial
"Commercial" refers to services performed at or for Commercial Premises.
1.15 Commercial Premises
"Commercial Premises" means Premises located within the boundaries of the City, occupied or used for any purpose other than residential uses. It includes premises upon which business activity is conducted, including but not limited to retail sales, services, wholesale operations, manufacturing and industrial operations, but excluding Residential Premises upon which business activities are conducted when such activities are permitted under applicable zoning regulations and are not the primary use of the property. Notwithstanding any provision to the contrary herein in the Hermosa Beach Municipal Code or otherwise, for purposes of this Agreement, Premises upon which the following uses are occurring shall be deemed to be Commercial Premises: Assisted Living Facilities, Convalescent Homes, Dormitories, Extended Stay Motels, Group Residential Facilities, Group Care Facilities, Hotels, Hostels, and Motels.
1.16 Contractor
"Contractor" means Arakelian Enterprises, Inc. dba Athens Services, a corporation organized and operating under the laws of the State of California and its officers, directors, employees, agents, companies and subcontractors, as permitted under Section
12.6. 1.17 Contractor's Proposal
"Contractor's Proposal" means the proposal submitted by Contractor to City on May 7, 2012 in response to a Request for Proposals dated March 13, 2012. This Agreement supersedes Contractor’s Proposal and is the final written expression of the Parties’ Agreement.
1.18 Contractor Compensation
"Contractor Compensation" means the revenue received by the Contractor from Customers and the City in return for providing services in accordance with this Agreement.
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1.19 Construction and Demolition Debris
"Construction and Demolition Debris" means Solid Waste generated at a Premises that is directly related to construction or demolition activities occurring thereon.
1.20 Container
"Container" means any and all types of Solid Waste receptacles, including Carts, Cans, Bins and Roll-off Boxes.
1.21 CPI
“CPI” means the Consumer Price Index (CUUR0000SA0L1E) for All Urban Consumers (CPI-U), all items less food and energy index – U.S. city average.
1.22 Customer
“Customer” means a Person receiving Solid Waste Handling Services from Contractor pursuant to the terms of this Agreement.
1.23 Dispose/Disposal
"Dispose” or “Disposal" means the ultimate disposition of Solid Waste Collected by Contractor at a landfill or otherwise in full regulatory compliance.
1.24 Disposal Site(s)
"Disposal Site(s)" means the Solid Waste handling Facility or Facilities utilized for the ultimate Disposal of Solid Waste Collected by Contractor.
1.25 Diversion
"Diversion" means any combination of waste prevention (source reduction), recycling, reuse and composting activities that reduces waste disposed at landfills, provided such activities are recognized by CalRecycle as Diversion in its determination of the City’s Diversion rate and compliance with AB 939. CalRecycle may limit Diversion considered to be achieved through Transformation/waste-to-energy, use of Green Waste as alternative daily cover (“ADC”) and other activities.
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1.25A Downtown Area
“Downtown Area” means the properties, businesses and Customers as defined in Exhibit 9.
1.25B Downtown Compactor
“Downtown Compactor” means the Roll-Off Box attached to compaction equipment used to service the businesses located in the Downtown Compactor Facility Service Area (See Exhibit 11).
1.25C Downtown Compactor Facility
“Downtown Compactor Facility” means the facility housing the Downtown Compactor (Roll-Off Box attached to compaction equipment), developed in City Parking Lot A. In the event that public restrooms are constructed as part of the Facility, the Downtown Compactor Facility does not include the public restrooms.
1.25D Downtown Compactor Facility Service Area
“Downtown Compactor Facility Service Area” means portions of the Downtown Area where automated service is not feasible and Customers may utilize the Downtown Compactor Facility under the terms of this Agreement, and as further described in Exhibit 11.
1.26 Electronic Waste
“Electronic Waste” means electronic equipment, including stereos, televisions, computers and monitors, VCRs, microwaves and other similar items commonly known as “brown goods” and “e-waste”.
1.27 Environmental Laws
"Environmental Laws" means all federal and state statutes, county, local and City ordinances concerning public health, safety and the environment including, by way of example and not limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 USC §9601 et seq.; the Resource Conservation and Recovery Act, 42 USC §6902 et seq.; the Federal Clean Water Act, 33 USC §1251 et seq.; the Toxic Substances Control Act, 15 USC §1601 et seq.; the 1156
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Occupational Safety and Health Act, 29 USC §651 et seq.; the California Hazardous Waste Control Act, California Health and Safety Code §25100 et seq.; the California Hazardous Substance Account Act, California Health and Safety Code §25300 et seq.; the Porter-Cologne Water Quality Control Act, California Water Code §13000 et seq.; the Safe Drinking Water and Toxic Enforcement Act, California Health and Safety Code §25249.5 et seq.; and Hermosa Beach Municipal Code Chapter 8; as currently in force or as hereafter amended, and all rules and regulations promulgated there under.
1.28 Facility
"Facility" means any plant or site, owned or leased and maintained, operated or used by Contractor for purposes of performing under this Agreement.
1.28A Food Waste
“Food Waste” means Solid Waste that may be Collected as part of the Food Waste programs included in Sections 4.3.1 and 4.3.7, which includes:
• All food (including fruits, vegetables, meat, poultry, seafood, shellfish, bones, rice, beans, pasta, bread, cheese and eggshells);
• Food-soiled paper (including napkins, paper towels, paper plates); and, • Tea bags, coffee grounds and filters.
1.29 Green Waste
"Green Waste" means tree trimmings, wood stumps, small pieces of wood, grass cuttings, dead plants, leaves, branches, flowers, plant stocks, and dead trees (not more than six (6) inches in diameter or forty-eight (48) inches in length) and similar materials.
1.30 Green Waste Processing Facility
“Green Waste Processing Facility” means a permitted Facility where Green Waste is sorted, mulched or separated for the purposes of Recycling, reuse or composting.
1.31 Gross Receipts
“Gross Receipts” means any and all revenue received from Billings by City or Contractor, and compensation in any form, of Contractor or subsidiaries, parent companies or other Affiliates of Contractor, for the Collection and transportation of 1157
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Solid Waste pursuant to this Agreement, in accordance with Generally Accepted Accounting Principles, including, but not limited to, Customer fees for Collection of Solid Waste, without subtracting Disposal fees, City fees or other fees or any other cost of doing business. Sales revenue from the sale of Recyclable Materials is excluded from Gross Receipts for the purpose of calculating Collector Fees.
1.32 Hazardous Substance
"Hazardous Substance" shall mean any of the following: (a) any substances defined, regulated or listed (directly or by reference) as "Hazardous Substances", "hazardous materials", "Hazardous Waste", "toxic waste", "pollutants" or "toxic substances" or similarly identified as hazardous to human health or the environment, in or pursuant to (i) the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 USC §9601 et seq. (CERCLA); (ii) the Hazardous Materials Transportation Act, 49 USC §1802, et seq.; (iii) the Resource Conservation and Recovery Act, 42 USC §6901 et seq.; (iv) the Clean Water Act, 33 USC §1251 et seq.; (v) California Health and Safety Code §§25115-25117, 25249.8, 25281, 25316, 25501 and 25501.1; (vi) the Clean Air Act, 42 USC §7901 et seq.; and (vii) California Water Code §13050; (b) any amendments, rules or regulations promulgated there under to such enumerated statutes or acts currently existing or hereafter enacted; and (c) any other hazardous or toxic substance, material, chemical, waste or pollutant identified as hazardous or toxic or regulated under any other applicable federal, state or local Environmental Laws currently existing or hereinafter enacted, including, without limitation, friable asbestos, polychlorinated biphenyl’s ("PCBs"), petroleum, natural gas and synthetic fuel products and byproducts.
1.33 Hazardous Waste
"Hazardous Waste" means all substances defined as Hazardous Waste, acutely Hazardous Waste, or extremely Hazardous Waste by the State of California in Health and Safety Code §25110.02, §25115, and §25117 or in the future amendments to or recodifications of such statutes or identified and listed as Hazardous Waste by the US Environmental Protection Agency (EPA), pursuant to the Federal Resource Conservation and Recovery Act (42 USC §6901 et seq.), all future amendments thereto, and all rules and regulations promulgated there under.
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1.34 Household Hazardous Waste (“HHW”)
"Household Hazardous Waste" means Hazardous Waste generated at Residential Premises.
1.35 Materials Recovery Facility (“MRF”)
"Materials Recovery Facility" means a permitted Solid Waste Facility where Solid Wastes or Recyclable Materials are sorted or separated for the purposes of Recycling, processing or composting.
1.36 Multi-Family Dwelling
"Multi-Family Dwelling" means any building or lot containing five (5) or more dwelling units. Multi-Family Dwelling units generally receive Refuse Collection service through the use of shared Bins, but may use Carts. Service is not dependent upon unit count unless specifically stated.
1.37 Person
"Person" means any individual, firm, association, organization, partnership, corporation, business trust, joint venture, the United States, the State of California, Los Angeles County, cities, and special purpose districts.
1.38 Premises
"Premises" means any land or building in City where Solid Waste is generated or accumulated.
1.39 Rate Year
"Rate Year" means the period July 1 to June 30, for each year during the Term of this Agreement.
1.40 Recycle/Recycling
“Recycle” or "Recycling" means the processing of Recyclable Materials for the purpose of returning them to the economy in the form of raw materials for new, reused, or reconstituted products. The Collection, transportation or Disposal of Solid Waste not 1159
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intended for, or capable of, reuse is not Recycling. Recycling does not include use of Solid Waste for conversion to energy.
1.41 Recyclable Materials
"Recyclable Materials" means Solid Waste that is Source Separated, has some potential economic value, and is set aside, handled, packaged, or offered for Collection in a manner different from Refuse in order to allow it to be processed for Recycling.
1.42 Refuse
"Refuse" means putrescible and non-putrescible Solid Waste.
1.43 Residential
"Residential" refers to services performed at and for Residential Premises, which include both Single-Family Dwellings and Multi-Family Dwellings.
1.44 Residential Premises
“Residential Premises” means Premises upon which dwelling units exist, including, without limitation, Single Family Dwellings, apartments, boarding or rooming houses, condominiums and mobile homes. Notwithstanding any provision to the contrary herein, in the Hermosa Beach Municipal Code, or otherwise, for purposes of this Agreement, Premises upon which the following uses are occurring shall not be deemed to be Residential Premises, and rather shall be deemed to be Commercial Premises:
Assisted Living Facilities, Convalescent Homes, Dormitories, Extended Stay Motels, Group Residential Facilities, Group Care Facilities, Hostels, Hotels, Motels, and any other businesses not specifically listed at which residency is transient in nature and hence should be classified as Commercial Premises as determined by City on a case by case bases.
1.45 Roll-off Box
“Roll-off Box” means Solid Waste Collection Containers of 10 (ten) cubic yards or larger.
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1.46 Single Family Dwelling
"Single Family Dwelling" means a dwelling unit in a building containing fewer than five (5) Residential dwelling units. Single Family Dwelling units generally receive individual Can or Cart Refuse Collection service, but service is not dependent upon unit count unless specifically stated.
1.47 Solid Waste
"Solid Waste" means all discarded putrescible and non-putrescible solid, semisolid, and liquid wastes, including Refuse, Construction and Demolition Debris, Bulky Items, Recyclable Materials, Green Waste, and Food Waste or any combination thereof which are permitted to be disposed of in a Class III landfill, and which are included in the definition of “Non-hazardous Solid Waste” set forth in the California Code of Regulations.
1.48 Solid Waste Handling Services
“Solid Waste Handling Services” means the Collection, transfer, transport, Recycling, processing, and Disposal of Solid Waste.
1.49 Source Separated
"Source Separated" means the segregation by the Waste Generator of individual components of Solid Waste, which otherwise would become Refuse or garbage (such as glass bottles, metal cans, newspapers, plastic containers, Green Waste etc.) into separate Container(s) for the purpose of allowing the Recycling of such materials.
1.50 State
“State” means the State of California.
1.51 Transformation
“Transformation” means incineration, pyrolysis, distillation, gasification, or biological conversion other than composting.
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1.52 Transfer Station
“Transfer Station” means a Facility that receives Solid Waste from Collection vehicles and transfers the material to larger vehicles for transport to landfills and other destinations. Transfer Stations may or may not include MRFs, transferring residual Refuse (Refuse left after the sorting of Recyclable Materials) to landfills and Recyclable Materials, including Green Waste and/or Construction and Demolition debris, to processors, brokers or end-users.
1.53 Waste Generator
"Waste Generator" means any Person as defined by the Public Resources Code, whose act or process produces Solid Waste as defined in the Public Resources Code, or whose act first causes Solid Waste to become subject to regulation. 1162
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ARTICLE 2
GRANT AND ACCEPTANCE OF FRANCHISE
2.1 Grant and Acceptance of Franchise, Indemnity of Award Subject to the terms and conditions of this Agreement (including but not limited to the exclusions set forth in Section 2.9 hereof) and applicable State laws, and to the rights of State, county and school district facilities to use a Solid Waste enterprise other than Contractor, City hereby grants to Contractor and Contractor hereby accepts from City, for the Term hereof, the exclusive franchise, right and privilege to provide Solid Waste Handling Services at all Residential and Commercial Premises within City (the “Franchise”).
2.2 Enforcement of Exclusivity
Contractor shall be responsible for enforcing the exclusivity of this Agreement. City shall have the right to enforce the exclusivity provisions hereof if, in its absolute and sole discretion, it chooses to do so, but shall have no obligation to do so for the benefit of Contractor or otherwise. City additionally shall have the right, but not the obligation, to request that Contractor enforce the exclusivity provisions hereof.
Contractor shall have an affirmative obligation to enforce such exclusivity provisions when requested to do so by City. For example, Contractor may be asked to notify City of inappropriately placed Containers and to place warning tags on such Containers.
City may direct Contractor to impound such Containers in accordance with the City’s Municipal Code and may be entitled to charge Container owners City-approved fees for such impounding. If Contractor requests that City take administrative, law enforcement, or other legal action to protect Contractor’s exclusive rights, or otherwise enforce the exclusivity of this Agreement (including the adoption of any resolution or ordinance intended to facilitate the enforcement of the exclusive rights granted herein), Contractor shall reimburse City for all administrative, law enforcement, or other legal costs and fees related to any such action. Contractor’s obligation to reimburse City shall not apply to any criminal enforcement by City.
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2.3 Effective Date
The “Effective Date” of this Agreement shall be the date which the City Council approves this Agreement.
2.4 Term of Agreement
The term of this Agreement (the “Term”) shall be eight (8) years, commencing on July 1, 2013, and expiring June 30, 2021, subject to extension as provided in Section 2.5, as applicable. Notwithstanding the foregoing, the unexcused failure or refusal of Collector to perform any material term, covenant, obligation or condition contained in this Agreement shall give rise to the right, in favor of City, for earlier termination of this Agreement for cause in accordance with the procedures elsewhere contained herein.
2.5 City’s Option to Extend Term
City shall have the sole option to extend the Term of this Agreement up to twenty-four (24) months following the Agreement Term under Section 2.4. The City may, upon at least ninety-day (90-day) advance written notice to the Contractor prior to the expiration of the Term of this Agreement, exercise this extension option. This extension period shall terminate, upon the earlier of: (i) the expiration of the aforementioned twenty-four (24) months, or (ii) the date City instructs Contractor that the contact will end, provided written notice of termination is provided to Contractor by City at least ninety (90) days prior to this termination date.
2.6 Representations and Warranties of Contractor
Contractor hereby covenants, represents, and warrants the following to City for the purpose of inducing City to enter into this Agreement and to consummate the transaction contemplated hereby, all of which shall be true as of the date of this Agreement and as of the Effective Date:
a) Contractor is validly existing as a corporation under the laws of the State of California.
b) Neither the execution of this Agreement nor the delivery by Contractor of services nor the performance by Contractor of its obligations hereunder: (1) conflicts with, violates or results in a breach of any applicable law; (2) conflicts with, violates or results in a breach of any term or condition of any judgment, 1164
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decree, agreement (including, without limitation, the certificate of incorporation of Contractor) or instrument to which Contractor is a party or by which Contractor or any of its properties or assets are bound, or constitutes a default under any such judgment, decree, agreement or instrument; or (3) will result in the creation or imposition of any encumbrance of any nature whatsoever upon any of the properties or assets of Contractor.
c) There is no action, suit or other proceeding as of the date of this Agreement, at law or in equity, or to the best of Contractor’s knowledge, any investigation, before or by any court or governmental authority, pending or threatened against Contractor which is likely to result in an unfavorable decision, ruling or finding which would materially and adversely affect the validity or enforceability of this Agreement or any such agreement or instrument entered into by Contractor in connection with the transactions contemplated hereby, or which could materially and adversely affect the ability of Contractor to perform its obligations hereunder or which would have a material adverse effect on the financial condition of Contractor. This provision may be waived by the City acting through its City Manager.
d) Contractor has no knowledge of any applicable law in effect as of the date of this Agreement that would prohibit the performance by Contractor of this Agreement and the transactions contemplated hereby.
e) Contractor has made an independent investigation, satisfactory to it, of the conditions and circumstances surrounding this Agreement and the work to be performed by it, and is satisfied that those conditions and circumstances will not impair its ability to perform the work and provide the Collection services required by this Agreement.
f) The information supplied by Contractor in all submittals made in connection with negotiation and execution of this Agreement, including all materials in Exhibits of this Agreement, and all representations and warranties made by Contractor throughout this Agreement are true, accurate, correct and complete in all material respects on and as of the Effective Date of this Agreement.
Inaccuracies in Contractor’s Proposal, such as material omissions of past and pending litigation as requested under the Request for Proposals through which this Agreement was procured, are grounds for termination of this Agreement. 1165
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g) Contractor’s representative, designated in Section 5.2.3, shall have authority in all daily operational matters related to this Agreement. City may rely upon action taken by such designated representative as action of Contractor unless the actions taken are not within the scope of this Agreement.
2.7 Conditions to Effectiveness of Agreement
The satisfaction of each and all of the conditions set out below, each of which may be waived in whole or in part by City in writing, is a condition precedent to the effectiveness of this Agreement:
a) Accuracy of Representations. All representations and warranties made by Contractor and set forth in this Agreement shall be accurate, true and correct on and as of the Effective Date.
b) Absence of Litigation. There shall be no litigation pending in any court challenging the award of this Franchise to Contractor or the execution of this Agreement or seeking to restrain or enjoin its performance. This provision may be waived by the City, acting through its City Manager. c) Furnishing of Insurance and Bond. Contractor shall have furnished evidence of the insurance and bonds required by Article 9, and shall comply with all ongoing requirements relating thereto.
d) Contractor shall have paid the contracting fee to City, as provided in Section 3.1.
2.8 Delegation of Authority
The administration of this Agreement by City shall be under the supervision and direction of City Manager's office and the actions specified in this Agreement, unless otherwise stated, shall be taken by the City Manager. This section shall in no way be interpreted to obviate required City Council action if so provided in the Hermosa Beach Municipal Code.
2.9 Limitations to Scope
Notwithstanding any provision to the contrary contained herein, the exclusive franchise, right and privilege to provide Solid Waste Handling Services at Premises within City granted to Contractor by this Agreement specifically excludes the following 1166
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services, which services may be provided by Persons other than Contractor and which may be the subject of other permits, licenses, franchises or agreements issued or entered into by City:
a) The sale or donation of Source-Separated Recyclable Material by the Waste Generator to any Person or entity other than Contractor; provided, however, if the Generator is required to pay monetary or non-monetary consideration for the Collection, transportation, transfer, or processing of Recyclable Material, even if the Generator receives a reduction or discount in price (or in other terms of the consideration the Generator is required to pay), the transaction shall not be considered a sale or donation;
b) Solid Waste, including Recyclable Materials and Green Waste, which is removed from any Premises by the Waste Generator, and which is transported personally by such Generator (or by his or her full-time employees) to a processing or Disposal Facility in a manner consistent with all applicable laws and regulations; c) Green Waste removed from a Premises by a gardening, landscaping, or tree trimming contractor, utilizing its own equipment, as an incidental part of a total service offered by that contractor, rather than as a hauling service; d) The Collection, transfer, transport, Recycling, processing, and disposal of animal remains from slaughterhouse or butcher shops for use as tallow; e) The Collection, transfer, transport, Recycling, processing, and disposal of byproducts of sewage treatment, including sludge, sludge ash, grit and screenings; f) The Collection, transfer, transport, Recycling, processing, and disposal of Hazardous Substances, Hazardous Waste, Household Hazardous Waste and radioactive waste regardless of its source;
g) The Collection transfer, transport, Recycling, processing, and Disposal of Construction and Demolition Debris;
h) The Collection of Refuse and/or Recyclables from public litter Containers (see Section 4.5.2 and Exhibit 4);
i) The Collection, transfer, transport, Recycling, processing, and Disposal of Solid Waste generated from City-owned and/or operated premises, public works 1167
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projects, City-sponsored events or other City-related activities, by City through City officers or employees in the normal course of their City employment; and, j) Solid Waste Handling Services for governmental agencies other than City, which may have facilities in City, but over which City has no jurisdiction in connection with the regulation of Solid Waste.
The exclusive franchise, right and privilege to provide Solid Waste Handling Services within City granted to Contractor by this Agreement shall be interpreted to be consistent with all applicable state and federal laws, now in effect and adopted during the term of this Agreement, and the scope of this Agreement shall be limited by all applicable current and developing laws and regulations. In the event that future interpretations of current law, future enactments or developing legal trends limit the ability of City to lawfully grant Contractor the scope of services as specifically set forth herein, Contractor agrees that the scope of this Agreement will be limited to those services and materials which may be lawfully provided, and that City shall not be responsible for any lost profits claimed by Contractor as a result thereof.
2.10 City's Right to Direct Changes
2.10.1 General
City may direct Contractor to perform additional services (including new Recycling or other Diversion programs, additional Solid Waste processing, etc.) or modify the manner in which it performs existing services or Bills for services. Pilot programs and innovative services which may entail new Collection methods, and different kinds of services and/or new requirements for Waste Generators are included among the kinds of changes which City may direct. Contractor acknowledges that State law may increase the Diversion requirement during the term of this agreement and Contractor agrees to propose services to meet such Diversion requirements. Contractor shall be entitled to an adjustment in its Contractor Compensation for providing such additional or modified services, including a profit factor equal to ten percent (10%) of the incremental cost of such additional or modified services. City may utilize cost components included in the Contractor’s Proposal in calculating equitable rate adjustments. If City and Contractor cannot agree on compensation for new or additional services within ninety (90) days from the date City first requests a proposal from Contractor, then City may contract 1168
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with other parties for such services, which shall be considered exempt from the exclusivity provisions of Section 2.1.
2.10.2 New Diversion Programs
Contractor shall present, within thirty (30) days of a request to do so by City, a proposal to provide additional or expanded Diversion services. The proposal shall contain a complete description of the following:
• Collection methodology to be employed (equipment, manpower, etc.). • Equipment to be utilized (vehicle number, types, capacity, age, etc.). • Labor requirements (number of employees by classification). • Type(s) of Containers to be utilized.
• Type(s) of material to be Collected.
• Provision for program publicity/education/marketing.
• One-year projection of the financial results of the program's operations in an operating statement format, including documentation of the key assumptions underlying the projections, and the support for those assumptions.
2.11 Ownership of Solid Waste
City and Contractor understand and agree that it is Contractor, and not City, who will arrange to Collect Solid Waste, that City has not, and, by this Agreement does not, instruct Contractor on its Collection methods, nor supervise the Collection process; nor do the Parties intend to place title to Solid Waste Collected by Contractor in City.
Rather, the Parties intend that whatever, if any, title in and to the Solid Waste that is Collected by Contractor which otherwise might exist in or with City in the absence of this Agreement is hereby transferred to Contractor; and further that if Contractor gains title to such Solid Waste it is by operation of law and agreement with its Customers and is not the result of this Agreement. Subject to the provisions of this Agreement, and unless City exercises its rights to direct the location for Disposal and processing of Solid Waste, Contractor shall have the right to retain, Recycle, process, dispose of, and otherwise use Solid Waste Collected pursuant to the terms hereof in any lawful fashion 1169
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or for any lawful purpose; and, further, shall have the right to retain any benefit resulting from its right to retain, Recycle, process, dispose of, or reuse the Solid Waste which it Collects. City’s right to redirect Solid Waste is not intended to impact Contractor’s right to retain Recyclables revenue pursuant to Section 4.2.4 of this Agreement. Ownership of Solid Waste shall transfer to Contractor when Customer places it at point of Collection.
Pursuant to Section 4.8, City reserves the right to designate the Solid Waste Facilities, including the Disposal Sites, to be used by Contractor. If City directs Contractor to a Facility other than a Solid Waste Facility chosen by Contractor (or directs Contractor to change the amount of Solid Waste being delivered to a Facility), and in doing so it adversely affects the ability of Contractor to meet either or both of the requirements of Section 4.2.5 and/or Section 9.4, then in this event the City and Contractor shall meet and confer and mutually agree on revised obligations for Sections 4.2.5 and 9.4. In addition, if any such exercise by City serves to significantly change Contractor’s cost of Disposal, processing and transportation of Solid Waste, rates may be equitably adjusted.
2.12 Contractor Status
Contractor represents and warrants that it is duly organized, validly existing and in good standing under applicable laws. It is qualified to transact business in the State of California and has the power to own its properties and to carry on its business as now owned and operated and as required by this Agreement.
2.13 Contractor Authorization
Contractor represents and warrants that it has the authority to enter into and perform its obligations under this Agreement. The Board of Directors or partners of Contractor (or the shareholders, if necessary) have taken all actions required by law, its articles of incorporation, its bylaws or otherwise to authorize the execution of this Agreement.
The Persons signing this Agreement on behalf of Contractor have authority to do so.
Contractor shall authorize one employee for the City as a single point of contact for issues arising under this Agreement, and Contractor acknowledges and agrees that City may expect and assume that this employee’s actions are taken on behalf of and with the full approval of the Contractor.
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2.14 Permits and Licenses
Contractor shall acquire and maintain all necessary permits and licenses for the Collecting, transporting, processing, and storing of Solid Waste including Recyclables, disposing of Solid Waste, and the Recycling of Recyclables as required under this Agreement. Failure to maintain all required permits shall be deemed a material breach of contract for which City may terminate this Agreement as provided in Section 11.1.
Contractor must follow requirements of the Hermosa Beach Municipal Code. 1171
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ARTICLE 3
FEES PAID TO THE CITY
In addition to any other consideration set forth herein, as part of its consideration for entering into this Agreement, and for the exclusive franchise, right and privilege to provide Solid Waste Handling Services as specified herein, Contractor shall provide the following:
3.1 Contracting Fee
Contractor shall pay to City a “Contracting Fee” in a one-time lump sum payment of One Hundred Fifty Thousand Dollars ($150,000) within seven (7) days of execution of this Agreement to reimburse the City for costs it incurred in connection with entering this Agreement.
3.2 Collector Fee
In consideration of the exclusive Franchise granted pursuant to this Agreement, the Contractor shall pay to the City a “Collector Fee,” equal to 10% of the Gross Receipts, net of AB 939 fees, received by Contractor. See Section 3.5 for submittal requirements.
3.3 Administrative Fee
To cover the cost of administering and managing the Franchise, the Contractor shall pay to the City an annual Administrative Fee in the amount of Fifty Thousand Dollars ($50,000), one twelfth of which to be paid monthly in accordance with Section 3.5. The Administrative Fee shall be adjusted annually, beginning with the January payment, by the percentage change in the Consumer Price Index for all Urban Customers (CPI-U), all items less food and energy – US City average for the twelve (12) month period ended the prior September. See Section 3.5 for submittal requirements.
3.4 AB 939 Fee
In order to support City’s recycling efforts, Contractor shall remit to City an AB 939 Fee in an amount equal to twenty-five cents ($0.25) per Residential Cart/Can Customer per month, and twenty-five cents ($0.25) per cubic yard of Refuse collected for all other Customers, including Multi-Family Bin, Commercial Cart, Bin and Can and Roll-Off 1172
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Box Customers, for both permanent and temporary services, but excluding source separated Recyclable Material Collection. See Section 3.5 for submittal requirements.
See approved rate schedule for AB 939 fees by service level. An example calculation of the monthly AB 939 Fee for a Bin Customer is as follows: a three (3) cubic yard Bin Collected five (5) times per week will result in an AB 939 fee of $16.25 per month ($0.25 per cubic yard x 3 cubic yards x 5 times per week x 4.33 weeks per month).
3.5 Timing and Submittal of Monthly Fee Payments
On or before the fifteenth (15th) day of each month during the Term of this Agreement, Contractor shall remit the Collector Fee and the AB 939 Fee based upon services provided to City the previous month, and one-twelfth of the annual Administrative Fee.
If the fees are not paid on or before the fifteenth (15th) day of the month, Contractor shall, along with fee payment, pay the maximum interest rate permitted by law on any balance not paid by the due date.
Contractor shall prepare and submit a fee payment statement with each fee payment that includes receipts by sector and supporting fee calculations for each fee.
Note that, as the Collector and AB 939 Fees are paid based upon the prior month’s services and receipts, a payment will be due the month following termination of the Agreement. This will not apply to the Administrative Fee, which is payable each month beginning July 2013.
3.6 Future Fees
In the event that City implements a new fee in compliance with all legal requirements such as Proposition 218 (including an increase in the Collector Fee percentage, or the AB 939 fee dollar amount), Contractor shall be entitled to a rate adjustment in an amount sufficient to recover the fee from Customers. City may elect to have Contractor pay monthly, or on another schedule as City identifies. City may set deadlines and late fees, and additional fees would be subject to audit.
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ARTICLE 4
DIRECT SERVICES
4.1 Refuse
4.1.1 General
The work to be done by Contractor pursuant to this Agreement shall include, but not be limited to, the furnishing of all labor, supervision, equipment, materials, supplies, and all other items necessary to perform the services required. The enumeration of, and specification of requirements for, particular items of labor or equipment shall not relieve Contractor of the duty to furnish all others, as may be required, whether enumerated elsewhere in the Agreement or not.
The work to be done by Contractor pursuant to this Agreement shall be accomplished in a thorough and professional manner so that all Customers are provided reliable, courteous and high-quality Solid Waste Handling Services at all times. The enumeration of, and specification of requirements for, particular aspects of service quality shall not relieve Contractor of the duty of accomplishing all other aspects in the manner provided in this section, whether such other aspects are enumerated elsewhere in the Agreement or not.
4.1.2 Residential Cart/Can Refuse Collection
Contractor will supply each Residential Refuse Cart Customer with 96, 64, 32 or 20- gallon Refuse Cart(s), as requested by Customer as described in Section 4.4.1.1.
Residential Customers shall be charged based upon the number and size of Refuse Carts requested. Should a Residential Customer require more than one (1) 20-gallon Refuse Cart to contain all Collected Refuse, then the Residential Customer shall be required to convert to a larger Cart at the applicable rates.
Alternative “Can” Service - Residential Customers who cannot accommodate Carts due to space constraints and/or conditions otherwise preventing the use of Carts will continue to receive service using Contractor-provided Refuse Containers, such as Cans, bags or boxes, for an equivalent monthly fee based on Container size; this form of service shall be called “Can” service. If Contractor and Customer cannot agree on whether Can service is necessary, the City Manager shall make the final determination. 1174
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Residential Customers that receive Can service in the form of barrels may request, and Contractor shall supply, barrels with both lids and wheels to facilitate ease of movement by Customers.
Contractor shall Collect Refuse delivered for Collection in accordance with this section not less than once per week. The designated Collection location of Containers, if disputed by the Customer or the Contractor, shall be determined by the City.
Additionally, if in the City’s opinion the existing Collection location is inappropriate, the City may require the Customer and/or the Contractor to relocate the Collection location.
4.1.3 Refuse Cart/Can Overage
Residential Cart Customers may periodically generate more Refuse than will fit in the Refuse Cart(s)/Can(s). Residential Customers are therefore entitled to six (6) annual pickups per calendar year of material that does not fit in the Refuse Cart(s) at no additional charge. One pickup shall consist of up to the equivalent of three (3) large bags, boxes or barrels of Refuse.
Additionally, Contractor shall Collect all additional Refuse placed out for Collection in the Residential Customer’s own Containers (bags, barrels, etc.) at no additional charge for two (2) weeks beginning each December 26. This service is limited to Refuse that could otherwise be placed in the Refuse Cart or Cans, and not Bulky Items which are Collected in accordance with Sections 1.6 and 4.1.15.
Residential Customers may be charged per pickup in accordance with the approved rate schedule for overage pickups exceeding six (6) per year and outside the two-week period beginning December 26.
Commercial Customers may request Cart overage Collections in accordance with the approved rate, but are not entitled to free overage collections.
4.1.4 Walk-Out Service
Walk-Out Service means that Contractor will remove Refuse, Recyclable and Green Waste Carts and, if applicable, Customer-provided Containers from Customer’s storage area, place them out for Collection, and return Carts and Customer-provided 1175
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Containers to Customer’s storage area after Collection, ensuring that all doors or gates are closed securely.
Contractor shall provide disabled Residential (excluding Bin) Customers with WalkOut Service at no additional charge. In order to qualify as disabled under this Section, Customers must provide evidence that they are physically unable to move the Containers, such as a doctor’s note, or must otherwise obtain approval to receive such services from the City. Additionally, Walk-Out Service need not be provided if an ablebodied person resides with the disabled Customer. Customers may be asked periodically, but no more than once per year, to sign an affidavit that no able-bodied residents reside at the Premises.
Able-bodied Customers may request Walk-Out Service for an additional charge in accordance with the approved rate schedule.
4.1.5 Bin Refuse Collection
Contractor shall provide Bin Service to Residential Customers not receiving Cart or Can service, and Commercial Customers. Contractor shall Collect and remove all Refuse that is placed in Bins at least once per week, and more frequently if required to handle the waste generated at the Premises where the Bins are located. If Contractor and Customer dispute applicable service levels, City shall make final determination as to the number and size of Containers, and frequency of Collection to be provided to Customers. Special consideration shall be given when determining the pickup areas to ensure that the flow of traffic is not impeded.
Contractor shall provide 1, 1.5, 2, 3, 4, 6 and 8 cubic yard Bins upon request. Contractor will service Bins equipped with compaction devices or “compactors” that attach to the Bins. The provision of the compaction device itself is outside of this Agreement.
4.1.6 Commercial Premises Cart Service
Contractor shall offer Collection in 32, 64 or 96-gallon Refuse Carts to Customers at Commercial Premises that do not have space for a Bin. If Contractor and Customer have a disagreement as to whether a Refuse Cart is appropriate, or if City determines the Collection in a Refuse Cart causes health and safety or other concerns, City shall make the final determination as to whether Collection in a Refuse Cart may occur. 1176
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4.1.7 Overflowing Bins and Carts
Customers that regularly produce more Refuse than their current level of service can accommodate may have their service level increased in accordance with the following procedure. Containers may be considered overflowing if Solid Waste rises above the top of the Container sufficiently that it is likely to fall out of the Container.
First Incident in Three Month Period – If more material is placed for Collection than fits in a Containers (unless Collection of overage has been properly arranged under Section
4.1.3), Contractor shall photograph the overflowing Container, Collect the Solid Waste, and send to the Customer (at both the service and billing addresses) the picture and a letter instructing that additional instances may result in an increase in the level of service.
Second Incident in Three Month Period – Upon the second event of an overfilled Container (unless Collection of overage has been properly arranged under Section 4.1.3) in a three-month period, Contractor shall photograph the overflowing Container, Collect the Solid Waste, and send to the Customer the picture and a letter instructing that a third incident in that same three month period may result in an increase in the level of service.
Third Incident in Three Month Period – Upon the third event of an overfilled Containers (unless Collection of overage has been properly arranged under Section
4.1.3) in a three-month period, Contractor shall photograph the overflowing Container, Collect the Solid Waste, and send to the Customer the picture and a letter requesting that Customer increase its service level. If the Customer declines, Contractor may petition City to permit Contractor to increase the service level to accommodate the higher demand for service. City approval is required prior to increasing a Customer’s service level without prior Customer consent.
4.1.8 Temporary Bin Service
Contractor shall provide exclusive temporary Bin Service to Customers upon request.
Contractor must deliver a temporary Bin to a Customer within forty-eight (48) hours of request (Sundays and holidays identified in Section 4.6.1.1 excluded). Rates for temporary Bin Service are listed separately in the approved rate schedule. 1177
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4.1.9 Scout Vehicles
Scout vehicles are defined as vehicles that transport a Solid Waste Container to and from the point of Collection by a Collection vehicle. Customers receiving scout truck service immediately prior to the start of service under this Agreement will continue to receive this service as identified in Exhibit 8. Contractor may continue to charge existing scout service Customers for this service, if it is operationally required to service the Bin. Contractor may add Customers to this service if the Bin cannot otherwise be positioned for Collection or if the service is requested by the Customer, or remove Customers from the scout route, in accordance with the approved rate schedule. In the event of a disagreement, the City shall make the final decision.
4.1.10 Bin Push-out Service
Contractor shall maneuver Customers’ Bins to the point of Collection, and return the Bins to Bin enclosures or other storage locations. Company may only charge a push-out fee, included in the approved rate schedule, if the push-out distance is at least ten (10) feet from the front of the enclosure or other storage location to the point on the Bin closest to the storage location when positioned for Collection, and that this point of Collection is as close to the storage location as operationally feasible. If it is operationally feasible for the route Collection vehicles to Collect at a location close enough that this measurement does not reach ten feet, a fee will not be applied. In accordance with Exhibit 2, if a fee is permitted per this section, it may be applied for each fifty (50) feet the Bin must be moved; charged once for ten (10) to fifty (50) feet, twice for fifty-one (51) to one hundred (100) feet, etc. Application of this fee to Customers not already being charged is subject to written approval of the City.
A push-out and a scout charge may not both be applied for servicing the same Bin.
4.1.11 Locking Bins
Contractor shall provide locking Bin Service (including providing the hasp and lock and servicing the lock) to Customers that request such service in accordance with the approved rate schedule.
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4.1.12 Roll-off Box Service
Contractor shall provide exclusive permanent and temporary Roll-off Box Collection service upon request. Contractor must deliver a temporary Roll-off Box to a Customer within forty-eight (48) hours of request (Sundays and holidays identified in Section
4.6.1.1 excluded).
Contractor will provide standard 10, 30 and 40-cubic-yard standard Roll-off Boxes. The provision of compactor Roll-off Boxes, which are enclosed Containers attached to a compaction devise, is not included in this Agreement. Providing service to such compactor Roll-off Boxes is included.
Roll-off Box service shall be Billed at a pull plus dump rate, meaning a flat rate for service plus a per ton rate for the Solid Waste Collected.
Customer may be charged a per ton overweight charge for each ton over ten (10) in any Roll-Off Box load. If Contractor can determine that a load is greater than ten (10) tons prior to Collection, Contractor may instruct Customer to reduce the load to no more than ten (10) tons.
4.1.13 Extra Assistance in High Solid Waste Generating Commercial Areas Areas of the City, particularly the Downtown Area, receive a significant increase in Solid Waste disposal on holiday weekends when Collection service might otherwise be postponed. In the Downtown Area (see Exhibit 9), Contractor shall continue Collection despite holidays, shall provide extra pickups as needed to minimize overflowing Containers, and maintain cleanliness in and around Bin enclosures and Solid Waste Containers.
Contractor shall proactively work with Customers to plan for surges in Solid Waste generation. Contractor shall work with Customers to minimize overflow from Bins and into enclosures on an ongoing basis.
4.1.14 Shared Solid Waste Downtown Compactor Facility and Porter Service Customers in the Downtown Compactor Facility Service Area share Solid Waste Container(s) due to space constraints on using individual Collection Containers and must utilize the Compactor Facility for solid waste collection. 1179
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Contractor shall monitor and control access to the shared solid waste facility.
Additional collection containers, such as for grease collection, may be housed in this Facility, and access will be provided to Customers paying for the shared Collection service and to third parties hired to provide collection of grease or other materials from the enclosure. Contractor is responsible for enclosure cleanliness and shall steam clean this enclosure, in accordance with all National Pollution Discharge Elimination System (NPDES) regulations, reclaiming and properly removing for disposal water, a minimum of three times per week, or more frequently if needed to control cleanliness of enclosure.
Contractor is responsible for monitoring and maintaining cleanliness of adjacent areas used to place other Solid Waste Containers, including Recycling Bins.
A. Shared Solid Waste Containers in Downtown Compactor Facility Service Area Prior to Construction of Downtown Compactor Facility
a) Prior to construction of new Downtown Compactor Facility, businesses in the Downtown Compactor Facility Service Area utilizing the shared solid waste containers in the existing non-automated enclosure shall continue bringing solid waste to the enclosure for Collection. Rates shall be charged based on generation level data from previous hauler.
b) When construction on new Downtown Compactor Facility begins, Contractor shall also provide a secured temporary staging area that will serve to provide trash collection services during the construction process. The Contractor shall have a designated representative to coordinate disposal operations during the construction process.
c) Access and Cleaning – Contractor shall monitor and control access to the shared solid waste facility. Additional collection containers, such as for grease collection, may be housed in this Facility, and access will be provided to Customers paying for the shared Collection service and to third parties hired to provide collection of grease or other materials from the enclosure. Contractor is responsible for enclosure cleanliness and shall steam clean this enclosure, in accordance with all National Pollution Discharge Elimination System (NPDES) regulations, reclaiming and properly removing for disposal water, a minimum of three times per week, or more frequently if needed to control cleanliness of enclosure.
Contractor is responsible for monitoring and maintaining cleanliness of adjacent areas used to place other Solid Waste Containers, including Recycling Bins. 1180
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B. Shared Solid Waste Containers in Downtown Compactor Facility Service Area After Construction of Downtown Compactor Facility
a) Porter Service. Porter service is the provision of Contractor employee(s) to operate and maintain the Downtown Compactor Facility. Contractor may assess fees for porter service in accordance with the approved rate schedule. This fee shall represent full compensation for the porter service. Contractor shall be responsible for dividing the porter service fee among Customers based on level of generation, which will, at a minimum, be done at the start of service, each time there is a change in the amount of the fee, and if requested by City. Contractor shall maintain records of level of generation and Collection of Solid Waste at participating businesses, and shall update the records, at a minimum, once a year, and each time the City requests a report or there is a change in tenants that may significantly alter the distribution of Collection efforts.
City may request an increase or decrease in the customer base receiving porter service, may add additional enclosures, or make other service adjustments; if such service changes make a significant impact in the cost of providing service, the porter service fee shall be adjusted to reflect the actual change in costs. b) Cost Allocation. Only costs included on the approved rate schedule and as provided in this section, and the new Downtown Compactor Facility construction cost and utilities as described in Section 4.12, may be charged and allocated by Contractor. Contractor shall determine shared Container Collection costs in accordance with the approved rate schedule and shall allocate the cost to participating Customers based upon usage. This allocated Solid Waste Collection fee shall be identified on the Customer’s invoice separately from the allocated porter service fee.
In addition to rates for Collection services under the approved rate schedule, businesses in the Downtown Compactor Facility Service Area utilizing the Downtown Compactor Facility described in Section 4.12 may also be charged for utility services and lease of the compactor.
Utility services for said Facility operation may be charged, including Gas, Water, and Electric service. Gas may be employed for the provision of hot water service.
Electrical service will be required for lighting, and operation of compactors, roll1181 May 24, 2013 -34- City of Hermosa Beach
up doors, and miscellaneous equipment. Water will be required for operation and cleaning of facilities.
The cost of leasing the compactor may be charged to participating businesses provided City provides written approval of the amount based on documentation of cost of the lease.
The Facility will also include a confined area for the installation of an aboveground grease receptacle, providing a means for disposal of used restaurant grease. While Contractor does not provide the grease collection service, Contractor shall keep the grease collection area clean. Contractor shall also be responsible for operation and maintenance of facility’s grease clarifier.
These Downtown Compactor Facility costs shall be proportionally allocated amongst the participants in the same manner that the other Facility costs are proportioned among the participating businesses (see above), and shall be charged on the businesses’ monthly billing statements.
c) Dispute over Allocation of Fees and Costs. If Customer and Contractor dispute the allocation of porter fees or shared Solid Waste Collection costs, Contractor shall provide Solid Waste Collection reports to the City Manager identifying the estimated quantity of Solid Waste Collected by Customer versus total Solid Waste Collected, based upon capacity, and the City Manager’s determination as to the allocation shall be final. Reallocation of these costs among Customers shall be done only upon request by, or with the approval of, the City. Reasons for reallocation may include a significant shift in the waste stream due to a change in mix of Customers or vacancy.
d) Dispute over Participation in Shared Downtown Compactor Facility Collection and Porter Service. If there is a dispute between a Customer and Contractor as to whether a business is to participate in porter service and in sharing Collection services and service costs, or if the City Manager otherwise determines a change is warranted for health and safety or other reasons, City Manager shall make the final determination as to participation.
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4.1.15 On-Call Bulky Item Pickup
Contractor shall provide Bulky Item pickup service to all Residential Customers (including Cart, Can and Bin Customers) on a regularly scheduled collection day. While Contractor may request Customers to call in Bulky Item pickups, Contractor shall ensure all items placed for Collection are picked up whether or not call has been placed.
If it is unclear to the driver whether an item was intended for Collection, Contractor may contact Customer for confirmation prior to collecting the item(s). If Contractor is unable to contact the Customer or unable to receive conformation prior to Collecting the item(s), Contractor will assign the Bulky Item(s) to the physical address in which the item(s) was placed. If there is a dispute between Contractor and Customer as to whether a Bulky Item Collection is to be assigned to a particular Customer, City will make the final determination.
Each Residential Customer shall be entitled to two (2) Bulky Item pickups per dwelling unit per calendar year at no additional charge.
Customers may put out up to three (3) cubic yards at each pickup. Contractor shall Collect all Bulky Items as defined in Section 1.6 including items referred to as Electronic Waste. The following provisions shall apply to this program:
• No single item that cannot be handled by two (2) workers will be accepted. • The following items will not be picked up: Hazardous Substances, Hazardous Waste, including waste oil or anti-freeze. (For the purposes of this section, universal wastes such as fluorescent bulbs, household batteries, and televisions, monitors and other items referred to as Electronic Waste are not considered hazardous and will be Collected by and disposed of in accordance with this section as well as Sections
4.1.16 and 4.1.17 by Contractor.)
Residential Customers that exceed the number of free Bulky Item pickups, and all Commercial Customers, may receive Bulky Item Collection under the same terms for a fee, in accordance with the approved rate schedule in Exhibit 2. 1183
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4.1.16 Bulky Item Diversion
Bulky Items Collected by Contractor in accordance with Section 4.1.15, 4.1.17 and 4.5.6, or otherwise Collected under this Agreement, may not be landfilled or disposed of until the following hierarchy of Diversion efforts has been followed by Contractor:
1) Reuse as is;
2) Disassemble for reuse or Recycling;
3) Recycle;
4) Dispose.
This hierarchy is intended to preclude the use of front or rear loading packer vehicles for Bulky Items, unless the compaction mechanism is not used to compact the Bulky Items, unless such items have been designated for Disposal.
4.1.17 Disposal of Electronic and Other Special Wastes
Contractor shall divert waste requiring special handling, such as Electronic Waste Collected in accordance with Sections 4.1.15, 4.1.16 or 4.5.6, or by other means under this Agreement, by taking these goods to a properly permitted Facility, and not by landfilling.
Contractor may encourage Customers through public education materials to bring small items requiring special handling, such as fluorescent bulbs or batteries, to a local HHW drop-off center, but will properly process such material received through the provision of services under this Agreement at no additional charge.
4.1.18 Optional On-Call Household Hazardous Waste Collection and Disposal Contractor shall implement a door-to-door HHW Collection program if requested by City within ninety (90) days of such a request. Contractor shall receive a rate increase, as specified in the approved rate schedule, of $0.45 per dwelling unit per month, applicable when the service becomes available to Residential Customers. Prior to program implementation, this $0.45 shall be recalculated to include the annual percentage rate increases approved by the City for the monthly Residential Cart Collection rate. For billing purposes, the City may direct Contractor to either add this HHW charge in with the monthly Residential Collection rate, or itemize the fee as a separate cost item on the invoice.
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If the City chooses to implement the door-to-door HHW Collection, City and Contractor shall meet and confer prior to implementation of this program to determine the frequency, or to establish the pre-scheduled days for door-to-door HHW collection.
These pre-scheduled days can be set at up to twice per month, based on the needs of the City. Residents will call Contractor to be placed on the route for the next pre-scheduled HHW Collection day. During this call, the residents shall receive instructions as to where, when and how to place the items for Collection. Items to be Collected shall include, at a minimum: Sharps, non-controlled pharmaceuticals, paint, oil, chlorine, pool acid, pesticides, household batteries, fluorescent bulbs, and other household chemicals.
If the City elects to provide City-wide drop-off events instead of individual door-todoor Collection of HHW, in addition to provisions allowing e-waste to be included as part of Bulky Item pick-up, for no more than the same cost per dwelling unit per month, Contractor shall promote and conduct two City-wide HHW drop-off events per year.
Contractor shall be responsible for securing an in-City location and for all associated event costs. Contractor may schedule the drop-off events in conjunction with the Shred Day events described in Section 4.1.20. These events would be separate from, and in addition to, any events conducted through Los Angeles County programs. Subject to City approval, Contractor may use a third-party vendor for such services, provided Contractor remains fully responsible for services provided by, and any payment to, such party. Contractor is responsible for ensuring that the vendor providing HHW Collection and proper disposal services under this section maintains all of the proper permits and insurance to provide such service.
4.1.19 Restaurant Food Waste Program Option
City may require Contractor to conduct a Restaurant Food Waste diversion pilot program upon request, at no additional charge.
4.1.20 Document Shredding
Contractor will conduct two (2) shredding events per calendar year, on City-approved days, at a City-provided location at no additional cost. City will inform Contractor of the time at which each event will begin, and each event shall last for eight (8) hours.
Contractor shall be on-site for a sufficient time before and after the event to set up and clean up. Contractor shall provide staff and equipment to Collect all paper delivered by 1185
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anyone that resides or operates a business in the City. Contractor will shred paper in manner that guarantees confidentiality and destruction of the documents, and diverts the shredded material from landfilling. Contractor will publicize the event through its mailers, contacting local business groups and placing local ads.
Contractor shall provide monthly document shredding services for City facilities.
Multiple sites may require servicing each month and Contractor is responsible for visiting each City facility in need of the service.
4.2 Recycling
4.2.1 Residential Cart/Can Recycling Collection
Contractor shall provide all Customers receiving Cart/Can Refuse Collection with a 96, 64 or 32-gallon Cart for Collection of Recyclable Materials (“Recycling Cart(s)”), and shall Collect all Recyclable Materials placed therein for Collection not less than once per week. Contractor shall Collect Recyclable Materials from each Customer on the same day as Customers’ Refuse Cart/Can is Collected. Residential Customers who cannot accommodate Carts due to space constraints and/or conditions otherwise preventing the use of Carts shall continue to receive service using Contractor-provided Blue Cans (“Recycling Cans”).
Recycling collection will be provided at no charge to the Residential Cart/Can Customers. Customers that regularly fill their Recycling Cart(s)/Can(s) may request additional Recycling Cart(s)/Can(s) at no additional charge.
Contractor shall have a Recycling program whereby it, at a minimum, Collects all materials that can be recovered at the local processing Facility used by Contractor.
Contractor will update public education materials accordingly as new items are added to those recovered by the Facility.
4.2.2 Commercial Recyclables Collection
4.2.2.1 Source Separated Recycling
Contractor shall provide Recycling services to Multi-Family Bin and Commercial Customers at rates no higher than 50% of comparable Refuse Collection rates for the same size Container and Collection frequency, in accordance with the approved rate schedule. Commercial Recyclables in Carts shall be collected on the Residential 1186
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Recyclables Cart route, and Recyclables in Bins may be Collected with mixed waste from Refuse Bins provided all such material is processed to recover Recyclables. As Commercial Recyclables tonnage will be co-Collected with other waste streams, Contractor shall provide an allocation of such tonnage on its tonnage reports, and provide allocation support upon request.
Contractor shall assist the City in meeting mandatory Commercial Recycling program requirements at no additional charge, including providing reporting that may be required. Contractor shall contact all Bin and permanent Roll-off Box Customers within the first twelve (12) months of the Agreement in an effort to establish Recycling programs. Contractor shall provide a reporting of these contacts, including whether a Recycling program was implemented as a result, and/or if the Customer indicated it already has a Recycling program in place, either through Contractor or a third party, and any other information that may assist the City in meeting the State’s mandatory Commercial Recycling program requirements.
Upon request, Contractor shall provide City with a list of Residential Bin Customers, and all Customers generating the State’s threshold for participation in mandatory Commercial Recycling (currently four-cubic-yards or more of Solid Waste generated per week), that do not subscribe to a Recycling program offered by Contractor or, if known, a third-party.
4.2.2.2 Downtown Compactor Facility Solid Waste Processing Contractor shall process all Solid Waste Collected from the Downtown Compactor Facility, removing non-compostables and composting the remainder of the Solid Waste for diversion credit.
4.2.2.3 Bin and Roll-Off Waste Processing
Contractor shall send to a MRF for processing all Solid Waste Collected in Bins and Roll-Off Boxes not covered under Section 4.2.2.2 to recover Recyclables prior to landfilling.
4.2.3 Warning Notice
Contractor shall place a red tag or other warning notice approved by the City on all Refuse, Recyclable Material or Green Waste loads that are contaminated, indicating to 1187
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the Customer why the load was not Collected and, if applicable, diverted, or if the Recycling or Green Waste Container was sufficiently contaminated that it had to be Collected as Refuse, and providing Contractor’s phone number. For Customers with off-site management such as small apartment buildings, Contractor shall also mail a copy of the warning to the Customer’s Billing address. Contractor shall notify City on a monthly basis of any warning notices issued pursuant to this section, and shall provide copies of such warnings to City upon request. With prior written City authorization, Contractor may remove Recycling and Green Waste Containers from habitual contaminators that have received a total of three (3) warnings on a Container in any sixmonth period. Recycling and Green Waste Containers will be returned after six (6) months, or upon direction of the City, or if there is a change of occupancy.
Contractor will visually inspect the contents of Residential Refuse Carts and, if significant Recyclable Materials are found, leave a notice educating Customer to better separate Recyclable Materials from Refuse.
4.2.4 Marketing and Sale of Recyclable Materials
Contractor shall be responsible for marketing and sale of all Recyclable Materials Collected pursuant to this Agreement. Contractor may retain revenue from the sale of Recyclable Materials, and shall report the amount of such revenues to City upon request.
4.2.5 Minimum Recycling Requirements
Contractor shall divert from landfilling a minimum of fifty percent (50%) of all Solid Waste it Collects under this Agreement. Recycling of materials not Collected by the Contractor is not to be counted towards meeting this requirement. For the purposes of this section, diversion includes Recycling, Transformation and other forms of converting Solid Waste into energy to the extent that such diversion is accepted by the State toward meeting the City’s diversion goal under AB 939.
4.2.6 Construction and Demolition Debris Diversion
Contractor shall divert a minimum of seventy percent (70%) of all Construction and Demolition Debris Collected. Contractor will bring all loads of mixed Construction and Demolition Debris to a construction and demolition debris processing facility for separation and recovery of this material.
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Contractor shall provide a dedicated customer service representative focused on providing support for construction and demolition projects who will work with each Customer to provide the correct services and service levels that ensure the highest feasible diversion at the lowest cost to the Customer.
4.2.7 Battery Recycling Drop-Off
Contractor shall provide containers at a minimum of four locations, such as City Hall, as identified by City for the drop-off of household batteries by residents. Contractor shall Collect batteries at least monthly, or more frequently if needed, and provide for proper disposal. This program shall be provided at no additional charge to City, rate payers or participants.
4.3 Green Waste Program
4.3.1 Single Family Green Waste Collection
Contractor shall provide all Customers receiving Cart Refuse Collection who opt to receive Green Waste service with 96, 64 or 32-gallon Cart(s), as requested, for Collection of Green Waste (“Green Waste Cart(s)”). Green Waste service shall only be provided using Carts, not Cans. See Section 4.4.1.1 for Cart distribution.
Customers shall be charged for Green Waste Cart Collection based upon the number and size of Green Waste Carts requested in accordance with the approved rate schedule.
Contractor shall Collect all Green Waste placed in Green Waste Carts, as well as all Green Waste bundled as set forth below, and put out for Collection by Customers paying for service not less than once per week. Contractor shall, at a minimum, Collect and divert the types of Green Waste defined in Section 1.29. Upon closure of the Puente Hills Landfill, Athens will accept and divert from landfilling Food Waste placed in Green Waste Carts, along with Green Waste, with no increase in rates for the addition of Food Waste to the Green Waste program other than the adjustment to Green Waste Cart rates permitted per Section 6.4.4 for the change in Green Waste facilities (from Puente Hills Landfill which could not accept Food Waste in Green Waste to a Facility that does).
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As soon as, and for as long as, Food Waste is permitted for Collection in the Residential Green Waste Cart, the City’s public schools administered by the Hermosa Beach City School District shall have the option of participating in this program at no cost to the City or schools. Contractor shall provide as many Carts to the schools as necessary to Collect their Food Waste, and such Carts shall be Collected on the Residential Green Waste Cart route.
Contractor shall only be obligated to Collect Green Waste set out for Collection in bundles if bundles are each a maximum of four (4) feet long and eighteen (18) inches in diameter.
Green Waste will be Collected from all subscribing Customers on the same weekday, initially determined to be Tuesday; the selected weekday shall be the day on which Customers with the greatest potential generation of Green Waste have their Refuse and Recyclables Collected, and any change in this day will be mutually agreed to in writing by the City and Contractor. At City’s sole discretion, Refuse Cart Customers with Refuse Collection on other weekdays may participate in the Green Waste program at the same rates, placing their Green Waste Carts out for Collection on Green Waste Collection day, or may not be provided the opportunity to opt-in in order to avoid Collection trucks on those Customers’ streets on a second Collection day each week.
4.3.2 Holiday Tree Collection Program
Contractor shall operate an annual holiday tree Collection program, Collecting all holiday trees placed out for Collection on Collection day by Residential Cart/Can or Bin Customers for a minimum of three weeks following December 25. After this period, trees will be Collected as Bulky Items under Section 1.6. Trees up to six (6) feet in length will be Collected and diverted without Customers needing to cut them.
Contractor may request that Customers with larger trees cut the trees to pieces no longer than six (6) feet.
In addition to the above curbside program, Contractor shall provide three (3) roll-off boxes for tree drop-off at City-specified locations during the three (3) weeks following December 25.
Contractor will divert all holiday trees from landfilling, with the exception of trees that cannot be diverted due to flocking, tinsel or ornaments. 1190
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4.3.3 End Uses for Green Waste
Contractor shall divert Green Waste materials Collected through weekly Cart and bundle Collection, and holiday tree Collection from Disposal. Contractor must provide end uses for Green Waste that maximize Diversion credits for City according to regulations established by CalRecycle. Green Waste may be used as alternative daily cover at landfills, or “ADC,” only to the extent that the City will get full Diversion credit for its use. Contractor is responsible for monitoring how the Green Waste will be diverted at selected facilities and for selecting alternative facilities if necessary to ensure full Diversion credit. Failure to do so places the Contractor in default. City has the option, but not obligation, to direct Contractor where to deliver the material.
4.3.4 Backyard Compost Program
Contractor shall offer composting bins and worm bins to each Residential Customer that requests one, and bill the Customer a co-pay in an amount to be determined by City. Contractor shall obtain written City approval prior to ordering bins, and City may select the bins. The difference between the amount billed to the Customer and the actual cost of the bin to the Contractor (excluding delivery or other associated costs) shall be reimbursed to Contractor by the City. City may inform Contractor as to an annual cap or overall cap on the number to be distributed.
At no additional cost, Contractor shall offer composting classes at least twice per year, and will create and make available a brochure that educates Customers on composting.
If requested by the City, Contractors will include presentations by nutritional experts and other guest speakers at the compost classes.
4.3.5 Free Compost Give-A-Way Events
Contractor shall conduct a compost give-a-way event twice each calendar year at no additional charge. Dates must be approved in advance by the City, which may require Contractor to select alternative dates. Location to be arranged by Contractor, subject to City approval. Contractor shall promote events through its mailings, website and other outlets. Contractor shall provide, at no cost to City, ratepayers or participants, two 40- cubic yard containers of compost to the event. Contractor shall provide sufficient staff to operate the event in an orderly manner and to assist residents in transferring the compost into resident-provided containers.
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4.3.6 Free City Compost
Contractor shall provide 100 cubic yards of compost per year for City usage at no cost, and offer the City additional compost above this limit at Contractor’s cost. Contractor shall deliver compost at locations and times coordinated with City; deliveries may be at multiple locations at different times.
4.3.7 Residential Food Waste Pilot Program
Contractor shall provide a three-month pilot program including Residential Green Waste Program Customers, but not less than ten percent (10%) of the City’s Residential Refuse Cart Collection Customers, for the Collection and Diversion of Food Waste. The program shall consist of educating participating residents to place Food Waste in their Green Waste Cart(s) for Collection on their regularly scheduled Green Waste Cart Collection day. Contractor shall collect tonnage data from partcipants before and during the pilot program period for comparison, and shall survey participants for feedback on program. This pilot program shall be conducted at no additional cost to City or ratepayers, and will be conducted at a time requested by City. (See Section 4.3.1 for converstion to City-wide Residential Food Waste Diversion program at closure of the Puente Hills Landfill.)
The public schools in the City of Hermosa Beach shall be provided the option of participating in this, or any, Food Waste pilot program at no cost to the City or schools.
The schools shall be provided sufficient Carts to accommodate the Food Waste generated by the schools. The schools need not add Green Waste to the Carts.
4.4 Container Selection, Distribution and Exchanges
4.4.1 Containers
4.4.1.1 Residential Container Distribution
All Carts and Contractor-provided Cans shall be new at the start of service.
Contractor shall mail a return postage paid postcard and information describing the new rate structure and Container options to all Residential Customers. Contractor must obtain City approval of post card and information to be sent prior to distribution.
Postcard will provide Customers with an opportunity to select the size and number of Refuse Containers, and Recycling and Green Waste Carts to be delivered. 1192
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If a selection is not made, Customers will receive one 64-gallon Refuse Cart and one 64- gallon Recycling Cart. No Green Waste Carts will be distributed to Customers who did not request one.
After initial Container distribution, Customers may request one (1) Container exchange at no charge within the six (6) months of the distribution, and once per year thereafter.
After one (1) exchange per year at no charge, Customers may request Container exchanges in accordance with the approved rate schedule. One exchange includes all Container adjustments requested at one time, and multiple Containers and types (Refuse, Recycling, Green Waste as applicable) may be exchanged.
In areas where Contractor cannot provide automated service due to right-of-way constraints (see Exhibit 10) and therefore Refuse Carts are not practical, Containers shall be provided by Contractor for Refuse and Recycling.
In addition, upon request and/or when a Customer expresses concern that he/she cannot accommodate anticipated Carts, Contractor will visit and work with Customers at their residences to demonstrate how the Carts can be stored and wheeled to the point of Collection where operationally feasible.
Should Customers not be able to accommodate Carts to be distributed, Contractor shall work with the Customer to provide a Container(s) to meet any legitimate space constraints or any difficulties in moving Containers from storage to Collection point.
Note that a rate for manual service is included in the rate schedule, to be applied when Cart service is not feasible. (See Section 4.1.2 – if Contractor and Customer dispute Cart versus manual/barrel service, City shall make the final determination.)
4.4.1.2 Removal of Existing Containers
Upon and after distributing new Refuse, Recycling and Green Waste Carts, Contractor shall remove, and Recycle to the extent possible before Disposing, all Customerprovided Cans, if Customer does not intend to retain the Cans. Contractor will also remove prior hauler’s Containers if prior hauler does not remove them. Contractor shall establish and advertise a system whereby Customers can indicate what Cans should and should not be removed. Prior to advertising removal of Containers, Contractor shall confer with prior hauler regarding coordination of removal and disposal of prior haulers’ Containers. If agreement cannot be reached, the City shall make the final decision. Contractor is responsible for all costs associated with Container collection and 1193
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Disposal or Recycling. Contractor may retain any scrap value received from the Recycling of collected Containers.
4.4.1.3 Container Design Requirements
The Carts shall be manufactured by injection or rotational molding and meet the Cart design and performance requirements as specified below. Cans shall comply with this section and the design and performance requirements as specified below as applicable.
All Containers selected shall be subject to City approval.
4.4.1.4 Capacity
Contractor shall provide Carts in 96-, 64- and 32-gallon sizes for Refuse, Recycling, and Green Waste Carts, 20-gallon for Residential Refuse, and 18-gallon for Commercial Recycling. Section references to Cart sizes of 18, 20, 32, 64 and 96-gallons are approximate. Acknowledging the different sizes provided by the various Cart manufacturers, the Carts shall be uniform in appearance and must conform to the following ranges in size:
20 to 29-gallons (18 to 29-gallon for Commercial Recycling), 30 to 35-gallons,
60 to 70-gallons, and
90 to 101-gallons.
4.4.1.5 Container Handles
The Cart handles and handle mounts may be an integrally molded part of the Cart body or molded as part of the lid. The Cart handles will provide comfortable gripping area for pulling or pushing the Cart or lifting the lid. The preceding shall apply to Cans to the extent applicable. Pinch points are unacceptable.
4.4.1.6 Container Lid
Each Container shall be provided with a lid that continuously overlaps and comes in contact with the Container body or otherwise causes an interface with the Container body that simultaneously:
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• Prevents the intrusion of rainwater, rodents, birds, and flies; • Prevents the emission of odors;
• Enables the free and complete flow of material from the Container during the dump cycle without interference with the material already deposited in the truck body or the truck body itself and its lifting mechanism;
• Permits users of the Container to conveniently and easily open and shut the lid throughout the serviceable life of the Container;
• The lid (and body) must be of such design and weight that would prevent an empty Container from tilting backward when flipping the lid open; and, • The lid shall be hinged to the Cart body in such a manner so as to enable the lid to be fully opened, free of tension, to a position whereby it may rest against the backside of the Container body.
4.4.1.7 Container Colors
The Refuse, Recycling and Green Waste Containers will be differentiated by color. The colors shall be colorfast and resistant to fading as a result of weathering or ultraviolet degradation. Color must be uniform within each Container, including replacement Containers distributed throughout the Term. Refuse Carts/Cans will be black.
Recycling Containers will be blue. Green Waste Carts will be green.
4.4.1.8 Container Markings
Containers shall be hot stamped. All markings must be approved by City prior to ordering. Graphics indicating which materials may and may not be placed in each Container and instructions on how to properly dispose of HHW, shall be included on the Container lid. Information shall be bilingual in English and Spanish. Labels shall include Contractor’s name and phone number, and the phone number for the proper disposal of HHW and Bulky Items. Containers shall provide street addresses as required by the Hermosa Beach Municipal Code to ensure correct billing. 1195
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4.4.2 Container Performance Requirements
All Carts shall be designed and manufactured to meet the minimum performance requirements described below, as applicable.
4.4.2.1 Cart Load Capacity
Depending on the capacity, Containers shall have a minimum load capacity as noted below without Container distortion, damage, or reduction in maneuverability or any other functions as required herein.
Size (Gallons)
Minimum Load Capacity
(LBS)
90-101 200
60-70 130
30-35 70
18 or 20–29 70
4.4.2.2 Container Durability
Containers shall remain durable, and at a minimum, shall meet the following durability requirements to satisfy their intended use and performance, for the term of this Agreement:
• Maintain their original shape and appearance;
• Be resistant to kicks and blows;
• Require no routine maintenance and essentially be maintenance free; • Not warp, crack, rust, discolor, or otherwise deteriorate over time in a manner that will interfere with the intended use;
• Resist degradation from ultraviolet radiation;
• Be incapable of penetration by biting or clawing of household pets (i.e., dogs and cats);
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• The bottoms of Containers’ bodies must remain impervious to any damage that would interfere with the Containers intended use after repeated contact with gravel, concrete, asphalt or any other rough and abrasive surface; • All wheel and axle assemblies are to provide continuous maneuverability and mobility as originally designed and intended; and,
• Resist degradation by other airborne gases or particulate matter currently present in the ambient air of the City.
4.4.2.3 Chemical Resistant
Containers shall resist damage from common household or Residential products and chemicals. Containers, also, shall resist damage from human and animal urine and feces.
4.4.2.4 Stability and Maneuverability
Containers shall be stable and self-balancing in the upright position, when either empty or loaded to the maximum design capacity with an evenly distributed load, and with the lid in either a closed or open position.
Containers shall be capable of maintaining the upright position in sustained or gusting winds of up to twenty-five (25) miles per hour as applied from any direction.
Carts shall be capable of being easily moved and maneuvered, with an evenly distributed load equal in weight to its maximum design capacity on a level, sloped or stepped surface.
4.4.2.5 Lid Performance
Cart lid assemblies shall meet the following minimum requirements:
• Prevent damage to the Cart body, the lid itself or any component parts through repeated opening and closing of the lid by residents or in the dumping process as intended;
• Remain closed in winds up to twenty-five (25) miles per hour from any direction.
All lid hinges must remain fully functional and continually hold the lid in the 1197
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original designed and intended positions when either opened or closed or any position between the two extremes; and,
• Lid shall be designed and constructed such that it prevents physical injury to the user while opening and closing the Cart.
Can lids shall maintain their shape and functionality, and be designed to remain in place, remain closed in winds up to twenty-five (25) miles per hour from any direction, and through repeated opening and closing of the lid by residents or in the dumping process as intended.
4.4.2.6 Reparability
Minor cracks, holes, and other damages to hinges, wheels, axle, hardware, and other component parts shall be readily repairable by Contractor personnel. All repairs must restore the Container to its full functionality to meet the design and performance requirements as set for herein.
4.4.3 Container Ownership and Maintenance Responsibilities All Containers that are distributed by Contractor under this Agreement remain the property of the Contractor at the end of the Agreement term. The Contractor shall be responsible for Container repair and maintenance, and replacing lost, stolen or damaged Container within three (3) business days at no additional charge to the Customer or to the City. Graffiti shall be removed or the Container replaced within twenty-four (24) hours of request by City or Customers. However, the Contractor may charge, subject to City approval, the Customer for repairing or replacing a Container if the damage was due to the Customer’s willful negligence or abuse. In no event shall this charge be greater than the Contractor’s actual cost for replacement parts or the new Container.
4.4.4 Bins
Contractor shall provide Customers with Bins for Collection of Solid Waste. Customers may obtain Bin compactors and Roll-off compactors from either Contractor or a third party; the leasing of such equipment is outside the scope of this Agreement. Contractor shall maintain its Bins in a clean, sound condition free from putrescible residue. Bins shall be constructed of heavy metal, or other suitable, durable material, and shall be watertight and well painted. Wheels, forklift slots, and other appurtenances, which 1198
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were designed for movement, loading, or unloading of the Bin, shall be maintained in good repair.
Contractor shall periodically inspect, and if necessary or requested by the Customer, clean or replace all Containers once per year at no charge. Contractor shall perform cleaning or replacement of Bins more frequently if necessary, in accordance with the approved rate schedule, to prevent a nuisance caused by odors or vector harborage and to check for leaks and damage. Contractor shall replace any leaking or damaged bins or lids within five (5) working days of observed damage or by request by the tenant or City at no charge. If free liquids are observed in bins, Contractor shall promptly notify Customer that free liquids are not permitted, and notify City on second such observation.
Customer may request additional cleanings in accordance with the approved rate schedule. Contractor shall remove graffiti at no additional charge from any Bin within twenty-four (24) hours of request by City or Customers. All Bins provided by Contractor shall remain the property of Contractor.
Each Bin placed in the City by the Contractor shall have the name and phone number of the Contractor in letters not less than three (3) inches high on the exterior of the Bin so as to be visible when the Bin is placed for use. Contractor shall repaint Bins upon City request.
To limit the possibility of leakage, Contractor shall provide Bins with plastic liners or plastic Bins at no additional cost to Customers whose Solid Waste may include liquid, organic, or other wet waste. Such Bins shall be supplied upon request; Contractor reserves the right to first make a site visit to confirm the nature of the waste generated, with the City making the final determination as to the necessity of a plastic Bin or Bin liner.
Following Collection, Bins shall be returned to enclosures with lids closed.
4.4.5 Roll-off Boxes
The Contractor shall provide clean Roll-off Boxes, free from graffiti, equipped with reflectors, and shall have the name and phone number of Contractor in letters not less than three (3) inches high on the exterior of the Roll-off Box so as to be visible when the Container is placed for use. Contractor shall properly cover all open Roll-off Boxes 1199
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during transport as required by the State Vehicle Code. Contractor shall replace any leaking or damaged Roll-Off Boxes within five (5) working days of observed damage or by request of the tenant or City at no charge. If free liquids are observed in Roll-off Boxes, Contractor shall promptly notify Customer that free liquids are not permitted, and notify City on second such observation.
Graffiti shall be removed within twenty-four (24) hours of request by City or Customers. All Roll-Off Boxes provided by Contractor shall remain the property of Contractor.
4.5 City Services
4.5.1 City Facilities Collection
Contractor shall Collect and dispose of all Refuse, Recyclable and Green Waste material put in Containers for Collection at Premises owned and/or operated by the City now and in the future at no charge, including no charge for locking Bins, scout service, pushout service or other special services. Contractor shall ensure a sufficient number of Solid Waste Containers are provided at all City facility locations to meet Collection needs.
Service levels, facility locations, and number of facilities serviced may increase during the Term of this Agreement without any additional compensation paid to the Contractor. Such Premises include, but are not limited to, City Hall, City offices, parks, community facilities, City yard, public litter and Recycling Containers (see Section
4.5.2), and street maintenance operations. Collections shall be scheduled at a time mutually agreed upon by Contractor and City.
Construction and demolition debris collected from City facilities and projects must be processed in accordance with Section 4.2.6 for maximum diversion credit at no additional charge.
Notwithstanding, Collection of refuse and debris by reason of floods, earthquakes, other natural disasters, war, civil insurrection, riots, acts of any government (including judicial action), and other similar catastrophic events shall be charged at the contractual rates or rates otherwise negotiated with the City at the time.
Street sweepings, as placed in a Container at the City yard by the street sweeping company, shall be collected and Disposed by the Contractor at no additional charge. 1200
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Contractor shall provide in-office Recycling Containers at all City facilities, including but not limited to the fire station and community center, upon request, including deskside Recycling Containers and larger cans for Collection in common areas.
Contractor shall visit City facilities prior to the start of service under this Agreement and meet with City staff to fully understand City facilities service needs and to recommend and implement improvements, if any.
4.5.2 City Litter Containers
Prior Consolidated Disposal Service-Serviced City Litter Containers Contractor shall service all City Refuse and Recycling public litter Containers identified in Exhibit 4 as Recycling and Refuse Containers previously managed by Consolidated Disposal Service at the following minimum frequencies:
a) At Least Once Per Day - Collect all Refuse Containers, between Memorial Day weekend and Labor Day, located along the beach, along Pier Avenue west of Ardmore, and in the Downtown Pier area between 10th Street and 15th Street. b) At Least Once Per Day – Collect all Recycling Containers, between Memorial Day weekend and Labor Day, located along the beach, along Pier Avenue west of Ardmore, and in the Downtown Pier area between 10th Street and 15th Street. c) At Least Once Per Week – Above referenced Containers from after Labor Day until immediately before Memorial Day weekend, and all other Refuse and Recycling Containers.
d) At Least Twice Per Week – Collect all Containers on Hermosa Avenue, Herondo Street, Greenwich Village, Longfellow Avenue and Aviation Boulevard. e) At Least Once Per Week – Collect all Containers on Prospect Avenue and Pacific Coast Highway.
f) At Least Three Times Per Week – Collect all Recycle Containers at all parks and Community Center.
g) Holiday Service – Contractor’s servicing of all City Litter Containers includes servicing on holidays.
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Athens/Contractor and True Green-Serviced Litter Containers Contractor shall assume Collection responsibility for all Refuse and Recycling public litter Containers identified in Exhibit 4 as serviced by True Green and by Contractor under a separate contract (see Exhibit 4 for identification of specific Containers). These Containers shall be Collected at the following minimum frequencies:
a) At Least Seven Days per Week – Containers in the Downtown Area and on the Pier currently serviced by Contractor.
b) At Least Three Days per Week - All other City litter Containers previously serviced by True Green in the Greenbelt, Parks and Community Center.
City will provide Containers. Contractor shall provide all liners necessary to provide Collection service. Contractor is responsible for additional Collections as necessary to prevent Container overflow at no additional charge, including more frequent Collections on holiday weekends. City may add additional Recycling Container Collections at no additional charge; a Recycling Container may be paired with each litter Container in distribution. City may increase the number of Refuse Containers to be Collected by Contractor up to 10% above the number included in Exhibit 4 at no additional charge. Contractor and City shall negotiate in good faith for the servicing of additional Containers above this limit, in the future at the request of City.
City reserves the right to have a third party service additional Containers. Solid Waste that may be Collected by third-parties from City public Refuse and Recycling Containers may be delivered to the City facilities for processing and Disposal by Contractor at no additional charge as part of City facilities Collection.
4.5.3 School Facilities Collection
Contractor shall Collect and dispose of all Refuse, Recyclable and Green Waste material put in Containers for Collection at all public school facilities at no charge, including no charge for locking Bins, scout service, push-out service or other special services. Service levels and number of facilities serviced may increase during the Term of this Agreement without any additional compensation paid to the Contractor. Collections shall be scheduled at a time mutually agreed upon by Contractor and City. 1202
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4.5.4 Special Events
Contractor shall provide litter/Recycling boxes and liners for Refuse and Recyclables Collection to City upon request at no additional charge for use at all City-sponsored and select other in-City events, including but not limited to:
New Year’s Eve (not event, to address increased pedestrian activity); California Coastal Cleanup;
Sunset Concert Series;
Ark Walk;
St. Patrick’s Day Parade; and,
Surfer’s Walk of Fame.
Recycling boxes should be easily distinguishable from Refuse boxes, and labeled to facilitate proper use by event participants. City crews may transport waste from these events and other in-City events to existing Bins and Roll-Off Boxes located at City yard or parks for servicing by Contractor under Section 4.5.1. If events are not listed in this section or otherwise sponsored by the City, Contractor may charge for litter boxes and liners in accordance with the approved rate schedule.
4.5.5 Emergency Collection and Disposal Service
Contractor will assist City at the City’s request with emergency Collection and Disposal service (in the event of major disaster, such as an earthquake, storm, riot or civil disturbance), or as otherwise determined necessary by the City, by providing Collection equipment and drivers normally assigned to City. Contractor may charge City for actual Disposal costs plus service rates per the approved rate schedule.
4.5.6 Abandoned Item Collection
Because time is of the essence, City crews will typically Collect items abandoned in the City and dispose of those items at City yard. Contractor will Collect such items from City yard and properly divert from landfilling or dispose of such items in accordance with Sections 4.1.16 and 4.1.17. To assist City crews, City may request that Contractor Collect abandoned items within 24 hours of request up to four times per month at no additional charge.
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4.5.7 Large Venue Event Assistance, Event Recycling
Contractor will assist planners of large venue events with reporting and planning needs as may be both useful in meeting the requirements of AB 2176, and in lowering Disposal quantities generated at, and reducing litter at, large venue and other events on City property for which a permit is required by the City at no additional charge.
Contractor shall take a proactive role in Solid Waste planning for large events. When informed by City as to an upcoming event, Contractor shall contact event planners to initiate Solid Waste Collection planning. Contractor shall provide Recycling services upon request to special event planners in accordance with Section 4.2.2.
4.5.8 Litter Boxes for Non-City-Sponsored Events
Contractor must make cardboard litter boxes and liners available for purchase for all non-City-sponsored events in accordance with the approved rate schedule.
4.5.9 Code Enforcement Assistances
City may request Contractor assistance with code enforcement, including reporting of container and enclosure issues and potential Solid Waste-related health and safety code violations. See Section 2.2 for code enforcement assistance regarding illegal hauling.
4.5.10 Capacity Guarantee
Contractor guarantees capacity at its processing facilities for all Solid Waste Collected under this Agreement.
4.5.11 Toy Drive Assistance
Contractor shall assist with an annual toy drive as directed by City, delivering to a Cityidentified location, and later removing, a clean, covered, water-tight lockable, walk-in roll-off box suitable for the Collection of toys.
4.5.12 South Bay Work Investment Board
Contractor will work with the South Bay Work Investment Board (“SBWIB”), to identify, interview, and hire SBWIB-provided candidates who meet Contractor’s hiring qualifications.
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4.5.13 Dog Waste Program
Contractor shall provide bags to the City for dog waste dispensers located in the City.
City crews will place the bags in the dispensers. Bags will conform to the City’s dispensers, but Contractor may place its logo, educational information or other suitable communications on the bag approved by the City.
4.6 Operations
4.6.1 Schedules
4.6.1.1 Collection Days and Hours
To preserve peace and quiet, Solid Waste shall only be Collected between 7:00 a.m. and 6:00 p.m. Residential collection is only permitted Monday through Thursday (with an exception for collection postponed to Friday during a holiday week as described below); Commercial collection is permitted seven (7) days a week. Contractor may not make exceptions to these Collection days and times without advanced written approval from the City.
If the regularly scheduled Collection day falls on New Year's Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving Day, or Christmas Day, Collection days for the remainder of that week shall all be postponed one Collection day, with the exception of service in the Downtown Area. Contractor shall continue providing scheduled service in the Downtown Area on holidays, and shall provide extra pickups as necessary, to prevent overflowing Containers on holiday weekends. See Section 4.1.13.
4.6.1.2 Review of Schedules and Routing
Contractor shall review its operations plan outlining the Collection routes, intervals of Collection and Collection times for all materials Collected under this Agreement with City within 45 days of the effective date of this Agreement, and subsequently upon thirty (30) days written notice requesting said review. Contractor shall submit a copy of its Commercial and Residential Collection schedule and route map within seven (7) days if requested by City. If the plan is determined to be inadequate by City, Contractor shall revise it, incorporating any changes necessary to make it satisfactory to City within thirty (30) days.
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No change in schedules and routing shall be implemented for fifteen (15) days after Contractor receives approval from City and notifies Customers. No significant route changes may be made by Contractor without prior approval by City.
4.6.1.3 Missed Pickups
If a missed pickup of Refuse, Recycling and/or Green Waste is reported to the Contractor by 3:00 p.m., the Contractor shall collect it on the same day. If a missed pickup is reported after 3:00 p.m., the Contractor shall make up the collection by noon of the next business day.
4.6.2 Vehicles
A. General. The Contractor shall provide Collection vehicles sufficient in number and capacity to efficiently perform the work required by this Agreement in strict accordance with its terms as described in this Agreement. Any additional vehicles/routes that may be required to meet the service standards during the term of this Agreement shall be added at the Contractor's sole expense. The Contractor shall have available on Collection days sufficient back-up vehicles for each type of Collection vehicle used to respond to complaints and emergencies.
B. Specifications. All route vehicles shall use compressed natural gas (“CNG”) or liquefied natural gas (“LNG”) within six months of the start of service under this Agreement. Contractor shall be in compliance with all rules and regulations currently in force or passed during the Agreement Term, including South Coast Air Quality Management District (“SCAQMD”) and the Air Resource Board’s regulations, in regards to all vehicles used in the City. No rate adjustments shall be made for such changes in law. All vehicles used by the Contractor in providing Solid Waste Collection services shall be registered with the California Department of Motor Vehicles. All such vehicles shall have watertight bodies designed to prevent leakage, spillage or overflow.
Roll-off Box vehicles, Container delivery vehicles, scout vehicles, supervisor pickup trucks, and vehicles used for holiday tree Collection, special events and Bulky Item Collection are only required to use LNG or CNG fuel to the extent required by law, including SCAQMD and Air Resources Board regulations, with no rate adjustments granted for such changes in law. If SCAQMD Rule 1193 is determined to apply to the City of Hermosa Beach, Section 1193(d)(4)(B) would be applied for Roll-Off vehicles. 1206
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All route vehicles shall be no older than fifteen (15) years at any point during the Term of the Agreement.
Contractor shall provide sufficient numbers of Collection vehicles no larger than a scout truck of GVM – 6,400 lbs., L-212’ x W-92” x H-75”, wheel base–118” and/or a small side loader of GVM-19,500 lbs., L-273” x W-96” x H-121”, wheel base–178.5” to service narrow streets and alleys North of 27th Streets and other difficult areas where standard size Collection vehicles cannot easily and safely service Customers.
C. Vehicle Identification. The Contractor's name, local telephone number, and a unique vehicle identification number designed by the Contractor for each vehicle shall be prominently displayed on all vehicles, in letters and numbers no less than three (3) inches high. The Contractor shall not place the City's name and/or any City logos on the Contractor’s vehicles. Vehicles shall all be painted in a standard color scheme. City must approve truck labeling.
D. Collection Vehicle Billboards. City reserves the right to request that Contractor install frames on its Collection vehicles for placement of City billboards. City would be responsible for the cost of developing the billboards and providing the billboards to Contractor for mounting. City has the exclusive right to promote City events and provide public information through the use of billboards on Collection vehicles.
E. Cleaning and Maintenance
1) Contractor shall maintain all of its properties, vehicles, Facilities, and equipment used in providing service under this Agreement in a good, safe, neat, clean and operable condition at all times, and compliant with all federal, State and local laws.
2) Vehicles used in the Collection of Solid Waste shall be painted, thoroughly washed, and thoroughly steam-cleaned on a regular basis so as to present a clean appearance. The City may inspect vehicles at any commercially reasonable time to determine compliance with this Agreement. The Contractor shall also make vehicles available to the Los Angeles County Health Department for inspection, at any frequency it requests. The Contractor agrees to replace or repair to the City’s satisfaction, any vehicle that the City determines to be of unsightly appearance, leaking, or in unsatisfactory operating condition. 1207
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3) Contractor shall repaint all vehicles used in the Collection of Solid Waste within sixty (60) days' notice from the City, if the City determines that their appearance warrants painting. City shall not request that vehicles be painted more than once every three (3) years.
4) The Contractor shall inspect each vehicle daily to ensure that all equipment is operating properly. Vehicles that are not operating properly, or vehicles that are leaking or in such a condition as to be unsafe or excessively noisy, shall be removed from service until repaired and operating properly. The Contractor shall reasonably perform all scheduled maintenance functions in accordance with the manufacturer's specifications and schedule. The Contractor shall keep accurate records of all vehicle maintenance, recorded according to date and mileage (or hours of operation) and shall make such records available to the City upon request.
5) Contactor shall repair, or arrange for the repair of, all of its vehicles and equipment for which repairs are needed because of accident, breakdown or any other cause so as to maintain all equipment in a safe and operable condition. The Contractor shall maintain accurate records of repair, which shall include the date and mileage (or hours of operation), nature of repair and the verification by signature of a maintenance supervisor that the repair has been properly performed.
6) Upon request by the City, the Contractor shall furnish the City a written inventory of all equipment, including Collection vehicles, used in providing service, and shall update the inventory annually. The inventory shall list all equipment by manufacturer, ID number, date of acquisition, type, and capacity.
F. Operation
1) Vehicles. Vehicles shall be operated in compliance with the California Vehicle Code, and all applicable safety and local ordinances. The Contractor shall not load vehicles in excess of the manufacturer's recommendations or limitations imposed by State or local weight restrictions on vehicles. 2) Noise. Equipment shall comply with US EPA noise emission regulations, currently codified at 40 CFR Part 205, and other applicable noise control regulations, and shall incorporate noise control features throughout the entire 1208
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vehicle. In no event shall the noise level of equipment used for Collection exceed seventy-five (75) dB when measured at a distance of twenty-five (25) feet from the vehicle, five (5) feet from the ground. Contractor shall submit to the City, upon City’s request, a certificate of vehicle noise level testing of all vehicles by an independent testing entity. The Contractor shall store all equipment in safe and secure locations in accordance with the City's applicable zoning regulations. 3) Damage. Contractor shall be responsible for any damage resulting from or directly attributable to any of its operations, and which it causes to: the City's driving surfaces (excluding normal wear and tear), whether or not paved; associated curbs, gutters and traffic control devices; other public improvements; and private roads and alleys.
G. City Inspection Per Code. The City may cause any vehicle used in performance of this Agreement to be inspected and tested at any commercially reasonable time and in such manner as may be appropriate to determine that the vehicle is being maintained in compliance with the applicable provisions of the State Vehicle Code, including all Vehicle Code sections regarding smog equipment requirements. The City may direct the removal of any vehicle from service if that vehicle is found to be in nonconformance with applicable codes. No vehicle directed to be removed from service by the City shall be returned to service until it conforms with applicable codes, and its return to service has been approved by the City.
H. Brake Inspections. The brake system of each vehicle used in performance of this Agreement shall be inspected and certified according to State law, but not less than annually, by the California Highway Patrol or by a brake inspection station licensed by the California Highway Patrol. Notice of certification shall be made available to the City within thirty (30) days of request. Failure to submit the required certification if requested shall be grounds for suspension or terminating this Agreement.
I. Correction of Defects. Following any inspection, the City Manager shall have the right to cause the Contractor, at its sole cost and expense, to recondition or replace any vehicle or equipment found to be unsafe, unsanitary or unsightly.
The City Manager’s determination may be appealed to the City Council, and its decision shall be final.
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4.6.3 Litter Abatement
A. Minimization of Spills. Contractor shall use due care to prevent Solid Waste or fluids from leaking, being spilled and/or scattered during the Collection or transportation process. If any Solid Waste or fluids leak or spill during Collection, Contractor shall promptly clean up all such materials. Each Collection vehicle shall carry a broom, shovel, absorbent, and containment materials at all times for this purpose.
Contractor shall not transfer loads from one vehicle to another on any public street, unless it is necessary to do so because of mechanical failure, accidental damage to a vehicle, or a pre-approved method of Solid Waste transfer between vehicles, without prior written approval by City.
B. Clean Up. During the Collection or transportation process, Contractor shall clean up all litter spilled during Collection or otherwise caused by Contractor.
Contractor shall leave a “red tag” notice for Customer if litter not caused by Contractor is found in Container enclosure or around Containers. For litter due to overflowing Bins, Contractor may address habitual offenders in accordance with Sections 4.1.3 and
4.1.7. In the event of a spill of materials (vehicle fluids, leachate, etc.), Contractor shall provide a cleanup of the spill to the satisfaction of City and other governing agencies.
Cleanup methods may include pressure washing (Contractor must capture and reclaim water) or other similar clean-up methods.
C. Covering of Loads. Contractor shall properly cover all open debris boxes during transport to the Disposal Site.
D. Maintenance of Roll offs, Bins and
4.6.4 Personnel
A. Qualified Drivers. Contractor shall furnish such qualified drivers, mechanical, supervisory, clerical, management and other personnel as may be necessary to provide the services required by this Agreement in a satisfactory, safe, economical and efficient manner. All drivers shall be trained and qualified in the operation of vehicles they operate and must possess a valid license, of the appropriate class, issued by the California Department of Motor Vehicles.
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B. Hazardous Waste Employee Training. Contractor shall establish and vigorously enforce an educational program which will train Contractor's employees in the identification of Hazardous Waste. Contractor's employees shall not knowingly place such Hazardous Waste in the Collection vehicles, nor knowingly dispose of such Hazardous Wastes at the processing Facility or Disposal Site.
C. Customer Courtesy. Contractor shall train its employees in Customer courtesy, shall prohibit the use of loud or profane language, and shall instruct Collection crews to perform the work quietly. Contractor shall use its best efforts to assure that all employees present a neat appearance and conduct themselves in a courteous manner.
If any employee is found to be discourteous or not to be performing services in the manner required by this Agreement, Contractor shall take all necessary corrective measures including, but not limited to, transfer, discipline or termination. If City has notified Contractor of a complaint related to discourteous or improper behavior, Contractor will consider reassigning the employee to duties not entailing contact with the public while Contractor is pursuing its investigation and corrective action process.
D. Compliance with Local Laws. Contractor and its employees shall comply with all local laws when conducting business in the City. No smoking is allowed within vehicles, and all smoking materials that are allowed shall be properly disposed of; no smoking materials or other trash shall be discarded in any location except approved trash or recycling containers. Employees and subcontractors shall comply with all other laws or regulations pertaining to franchisees or the public generally.
E. Unauthorized Material Removal. Contractor shall dismiss or discipline employees who remove documents or any other material from Containers, other than specifically for the purposes of Disposal and Diversion as described in this Agreement.
F. Training. Contractor shall provide suitable operations, health and safety training for all of its employees who use or operate equipment or who are otherwise directly involved in Collection or other related operations.
G. Compliance with Immigration Laws. Contractor shall be knowledgeable of and comply with all local, state and federal laws which may apply to the performance of this Agreement. Contractor warrants and represents that all of its employees, including any and all prospective employees hired to perform services for the City under this Agreement and the employees of any subcontractor retained by the Contractor to 1211
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perform a portion of the services under this Agreement, are and will be authorized to perform the services contemplated by this Agreement in full compliance with all applicable state and federal laws, rules and regulations.
H. Scavenging, Code Enforcement. Contractor shall train full time employees working in the City to work with local law and code enforcement to assist, and/or receive direction from, City to write warnings, to educate scavengers and Residents about proper Recycling, and to monitor the streets in the morning hours.
4.6.5 Identification Required
Contractor shall provide its employees, companies and subcontractors who may make personal contact with residents or businesses in City with identification. City may require Contractor to notify Customers yearly of the form of said identification.
Contractor shall provide a list of current employees, companies, and subcontractors to City upon request.
City reserves the right to perform a security and identification check through the City’s Police Department on the Contractor and all their present and future employees employed by Contractor to work in the City, in accordance with accepted procedures established by City, or for probable cause.
4.6.6 Fees and Gratuities
Contractor shall not, nor shall it permit any agent, employee, or subcontractors employed by it to accept or request, solicit or demand, either directly or indirectly, any compensation or gratuity for services authorized to be performed under this Agreement except as described in this Agreement, in accordance with Exhibit 2 as updated and approved by City throughout the Term of the Agreement.
4.6.7 Non-Discrimination
Contractor shall not discriminate in the provision of service or the employment of Persons engaged in performance of this Agreement on account of race, color, religion, sex, age, physical handicap or medical condition in violation of any applicable federal or Solid Waste law.
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4.6.8 Routing and Coordination With Street Sweeping Services Contractor shall provide all routes and route schedules to the City and work with the City to resolve conflicts with street sweeping schedules.
4.6.9 Report of Accumulation of Solid Waste; Unauthorized Dumping Contractor shall direct its drivers to note (a) the addresses of any Premises at which they observe that Solid Waste is accumulating and is not being delivered for Collection; and (b) the address, or other location description, at which Solid Waste has been dumped in an apparently unauthorized manner. Contractor shall deliver the address or description to City within one (1) working day of such observation.
4.6.10 Municipal Separate Storm Sewer System Protection Contractor shall conduct all aspects of work in accordance with municipal codes in a manner that prevents the discharge of non-stormwater and minimizes the discharge of pollutants in stormwater to the municipal separate storm sewer system (MS4) which includes paved streets, driveways, alleys, gutters, ditches, manmade channels, catch basins, yard or area drains connected to the street, etc. Any discharge that would result in or contribute to a violation of the Municipal Separate Storm Sewer System (MS4) NPDES permit, Order No. 01-182 and any subsequent amendments or reissued permit by the Los Angeles Regional Water Quality Control Board (Regional Board) is prohibited in accordance with the federal Clean Water Act. Liability for any such discharge including penalties levied by the Los Angeles Regional Water Quality Control Board shall be the responsibility of the contractor whose personnel caused or were responsible for the discharge. All non-storm water discharges to the MS4 are prohibited unless specifically exempted by the MS4 NPDES Permit or by the Regional Board Executive Officer.
4.7 Transportation of Solid Waste
Contractor shall transport all Solid Waste Collected to an approved Facility per Section
4.8 (e.g. Transfer Station, waste-to-energy Facility, Green Waste Processing Facility, MRF, Disposal Site).
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Contractor shall maintain accurate records of the quantities of Solid Waste transported to all Facilities utilized and will cooperate with City in any audits or investigations of such quantities.
Contractor shall cooperate with the operator of any Facility it uses with regard to operations therein, including, for example, complying with directions from the operator to unload Collection vehicles in designated areas, accommodating maintenance operations and construction of new facilities, cooperating with its Hazardous Waste exclusion program, and so forth.
4.8 Approved Facilities
The approved Disposal Site for non-diverted Solid Waste is the Chiquita Canyon Landfill, Sunshine Canyon Landfill, El Sobrante Landfill and/or Puente Hills Landfill.
Contractor must receive written advance approval from City to use each Transfer Station, Transformation Facility, processing Facility or other Facility used by Contractor in the fulfillment of this Agreement. Contractor is responsible for ensuring that each Facility it uses is properly permitted prior to requesting City approval to use such Facility. Unless and until the City instructs otherwise, the designated Disposal Site and other Facilities are: Athens Services Transfer Facility and MRF (City of Industry), Potential Industries (Wilmington), Chiquita Canyon Landfill (Castaic), Sunshine Canyon Landfill (Sylmar), El Sobrante Landfill (Corona), Puente Hills Landfill in Whittier, California Waste Systems (Gardena), Commerce Refuse-to-Energy (Commerce), Southeast Resource Recovery Facility or “SERRF” (Long Beach), Waste Resources Recovery (Gardena), Edco Recycling and Transfer (Signal Hill), and San Bernardino County Solid Waste Disposal sites.
4.9 Status of Disposal Site
Any Disposal Site utilized by Contractor shall be designed and constructed in accordance with 23 California Code of Regulations Section 2510 et seq. ("Subchapter 15"). Any such landfill must have been issued all permits from federal, state, regional, county and City agencies necessary for it to operate as a Class III Sanitary Landfill and is in full regulatory compliance with all such permits. 1214
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4.10 Dedicated Routes
Solid Waste Collected in the City may not be commingled in Collection vehicles with Solid Waste from other jurisdictions, unless the City approves in writing of the specific commingled routes and the tonnage allocation method to be used.
4.11 Service Exceptions; Hazardous Waste Notifications
A. Failure to Collect. When Solid Waste is not Collected from any Solid Waste service recipient, Contractor shall notify the service recipient in writing, at the time Collection is not made, through the use of a “red tag” or otherwise, of the reasons why the Collection was not made.
B. Hazardous Waste Inspection and Reporting. Contractor reserves the right to inspect Solid Waste put out for Collection and to reject Solid Waste observed to be contaminated with Hazardous Waste, and the right not to Collect Hazardous Waste put out with Solid Waste. Contractor shall notify all agencies with jurisdiction, if appropriate, including the California Department of Toxic Substances Control and Local Emergency Response Providers and the National Response Center of reportable quantities of Hazardous Waste, found or observed in Solid Waste anywhere within City. In addition to other required notifications, if Contractor observes any substances which it or its employees reasonably believe or suspect to contain Hazardous Wastes unlawfully disposed of or released on any City property, including storm drains, streets or other public rights of way, Contractor will immediately notify City Manager.
Contractor shall implement and maintain a training program that will assist its employees in identifying and properly disposing of any Hazardous Waste that may come into their possession.
C. Hazardous Waste Diversion Records. Contractor shall maintain records showing the types and quantities, if any, of Hazardous Waste found in Solid Waste and which was inadvertently Collected from service recipients within City, but diverted from landfilling.
4.12 Downtown Compactor Facility Development
City shall build a Downtown Compactor Facility that, at a minimum, is a permanent, fully contained facility with utilities located in City Parking Lot A to contain the Downtown Compactor(s) and facilities required to provide solid waste services to the 1215
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Downtown Compactor Facility Service Area in compliance with regulatory requirements. Contractor shall reimburse City the costs of designing and building the Facility, estimated to be approximately $130,000; provided that, if the City builds public restrooms at the facility, Contractor shall only be responsible for paying the costs associated with the Downtown Compactor Facility and not the public restrooms.
Contractor shall reimburse City within 30 days of receipt of a written invoice from City.
Failure to pay City in a timely manner shall be a material breach of this agreement.
Alternatively, should the City elect not to include public restrooms in the facility, City shall have the right to assign the Contractor the responsibility for building the Facility in accordance with specifications approved by the City. In such event, Contractor shall pay prevailing wage rates in accordance with the California Labor Code. Contractor shall convey title to the facility to the City upon completion and acceptance by City.
Contractor shall operate, maintain and be responsible for the Downtown Compactor Facility throughout the Term of this Agreement, including without limitation the same cleaning obligations as described for enclosure cleaning in Section 4.1.14. City shall have no obligations with respect to the Downtown Facility throughout the Term of this Agreement, provided that the City shall be responsible for maintaining and cleaning any public restrooms constructed at the Facility. Contractor shall provide all necessary utility services to the Downtown Compactor Facility and, if Contractor builds the Facility, shall be responsible for obtaining all necessary approvals and permits to construct Facility.
The City hereby grants Contractor a revocable license to enter and use the Facility Premises for the sole purpose of constructing, maintaining and operating the Downtown Compactor and Downtown Compactor Facility at the Facility Premises and to the specifications specified above and as required by the City for the Term of this Agreement. Upon expiration of termination of this Agreement, this license shall automatically become null and void, shall be of no further force and effect.
Contractor may amortize the cost to construct the Downtown Compactor Facility over a twenty (20) year period and pass those costs through to the participating businesses in the Downtown Compactor Facility Service Area in proportion to the service levels of each of those participant businesses through the business’ monthly billing statement.
Any amount of the amortized pass-through costs outstanding at the time this Agreement terminates or expires may be assigned to the City’s subsequent Collection contractor. City shall require the subsequent Collection contractor to reimburse 1216
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Contractor in a lump sum any remaining as yet unreimbursed construction costs. In no event shall the City be responsible for paying the Downtown Compactor Facility construction costs, or any other costs associated with Downtown Compactor Facility maintenance or operation.
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ARTICLE 5
OTHER SERVICES
5.1 Customer Service
5.1.1 Local Office, Response Time
Contractor shall maintain an office within City limits, for the term of the Agreement, staffed and open for Customers, at a minimum, from 8:00 a.m. to 5:00 p.m., Monday through Friday, excluding holidays.
Contractor shall staff a toll-free telephone line to assist Customers from 7:00 a.m. to 6:00 p.m. Monday through Friday; a representative or an answering service shall be available from 8:00 a.m. to 5:00 p.m. on Saturday; a representative, an answering service or answering machine shall be available during all other hours. As an enhancement to the above requirements during certain hours, Contractor shall provide a live operator (not an automated menu leading to a representative) from 7:00 a.m. to 5:00 p.m.
Monday through Friday and from 8:00 a.m. to 12:00 p.m. on Saturday. Calls received by answering service or machine shall be responded to by the next business day.
Contractor shall provide City with a twenty-four (24) hour emergency number to a live person, not voice-mail.
Contractor's telephone system shall be adequate to handle the volume of calls typically experienced on the busiest days and Customers must be reasonably able to reach Contractor by telephone during these hours. Contractor shall record Customer complaints regarding Customer service personnel in accordance with Section 5.1.2.
Customer service representatives receiving multiple complaints are to be transferred from Customer service duties or, with City approval, disciplined and appropriately trained.
Contractor shall be required to direct all Customers to Contractor’s offices in all public outreach, including its website. Should Customers first contact City, Contractor shall pay for any extra costs associated with establishing a means of forwarding Solid Wasterelated calls directly to Contractor without the need for Customers to re-dial. 1218
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5.1.2 Complaint Documentation
Service complaints received by City shall be directed to Contractor. Contractor shall keep daily logs of complaints forwarded to it for a minimum of three (3) years.
Contractor shall log all complaints received, and said log shall include the date and time the complaint was received, the name, address and telephone number of the caller/complainant, a description of the complaint, the name of the employee recording the complaint and the action taken by Contractor to respond to and remedy the complaint. Log shall also include each instance that Solid Waste and/or Recyclables are not Collected, the form of notification used to inform the participants of the reasons for non-Collection, and the end result or means of resolution of the incident.
All written Customer complaints and inquiries shall be date-stamped when received.
All complaints shall be initially responded to within one (1) business day of receipt, except missed pickups, which shall be addressed within the time frame described in
4.6.1.3. Contractor shall use best efforts to resolve complaints within two (2) business days. Contractor shall log action taken by Contractor to respond to and remedy the complaint.
All Customer service records and logs kept by Contractor shall be available to City upon request. Contractor shall supply compliant log to City on a quarterly basis. City shall, at any time during regular Office Hours, have access to Contractor's Customer service department for purposes that may include monitoring the quality of Customer service or researching Customer complaints.
5.1.3 Resolution of Customer Complaints
Disputes between Contractor and Customers regarding the services provided in accordance with this Agreement may be resolved by City Manager. City Manager’s decision shall be final and binding.
Intervention by City is not a condition precedent to any rights or remedies third parties might otherwise have in any dispute with Contractor. Nothing in this section is intended to affect the remedies of third parties against Contractor. 1219
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5.1.4 Service Liaison/Route Supervisor
Contractor shall designate in writing a field supervisor as “Service Liaison” who shall be responsible for working with City and/or City's designated representative(s) to resolve Customer service related complaints. City shall have the right to approve the Contractor’s choice for a liaison. City shall be notified in advance of any change in Service Liaison. Service Liaison shall devote a minimum of 50% of his/her time to working with the City of Hermosa Beach, and 100% of his/her time to working in the South Bay. For at least the first 90 days of service, Contractor shall devote two Service Liaisons (route supervisors) to the City 100% of the time.
5.2 Education and Public Awareness
5.2.1 General
Contractor acknowledges and agrees that education and public awareness are critical, key and essential elements of any efforts to achieve the requirements of AB 939.
Accordingly, Contractor agrees to take direction from City to exploit opportunities to expand public and Customer knowledge concerning needs and methods to reduce, reuse and Recycle Solid Waste, and to cooperate fully with City in this regard.
Contractor shall maintain its own program of providing information relevant to needs and methods to reduce, reuse and Recycle Solid Waste with its Bills. All public education materials shall be approved in advance by City and shall be printed in English and Spanish.
5.2.2 Implementation and On-going Education Requirements In order to promote public education, in addition to any other materials it develops, Contractor shall create the following public education materials and programs at Contractor expense, subject to City approval and input, which will be distributed as indicated below. All of these materials and programs shall be produced and/or available in English and Spanish languages, including pictures wherever applicable.
All brochures, mailings, instructional “how-to” packets, and other educational materials are to be approved by City in advance of distribution. A public education plan shall be submitted to City for review within sixty (60) days of the execution of this Agreement.
This plan shall address the items described in this section. 1220
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• Initial Mailing – At least forty-five (45) days prior to the start of Collection service under this Agreement, Contractor will prepare and mail an initial mailing to all Customers explaining the transition from the existing Solid Waste Handling Service program to the new program as defined by this Agreement. The mailing will describe program changes, route changes if any, dates of program implementation, Recycling and Diversion programs available, and other pertinent information. • Instructional “How-to” Packets – An information packet shall be provided to each Customer at the start of service under this Agreement and to each new Customer throughout the Agreement term. This packet shall: describe available services, including available Recycling and Diversion programs and their benefits; provide instructions for proper use of the Carts and Bins provided (such as how to place Carts or other permitted items for Collection, the types of materials to be placed in each Cart); detail holiday Collection schedules; and provide Billing and Customer service telephone numbers. This packet will contain updated information on how to use Containers, when, where and how to place Solid Waste for Collection, and who to contact with service or Billing questions, and for Bulky Item pickups.
The packet should also clearly indicate what materials, such as syringes and other HHW, should not be disposed of in these Containers. This brochure shall include instructions on how Customers should dispose of HHW and Sharps, such as information on the HHW drop-off facilities, Sharps program, and other available programs.
• Public Outreach Pieces – Not less than twice per year during each Rate Year at Contractor’s cost, Contractor shall prepare and distribute to each Customer, either by mailing or as otherwise dictated by City a public education piece to update Customers regarding program basics, program changes, holiday schedules and other service related information. Mailings may promote and explain: all Solid Waste programs offered by City and Contractor (such as Recycling, Green Waste, holiday tree, Bulky Item Collections, annual HHW round-up) described in detail; the environmental, regulatory, and other benefits of participating in Recycling and waste minimization and reuse in general; how to properly dispose of Household Hazardous Waste such as syringes, paint, etc.; Collection schedules, including holiday schedules; Customers service numbers; or other information requested by City.
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City shall determine the messages to be included in each piece and the format (brochure, door hanger, other), and shall have final approval over the pieces. • Article and Press Release Assistance – Contractor shall assist the City in preparing articles and press releases related to Solid Waste services and environmental issues upon City request.
• Corrective Action “Red-Tag” Notice – Contractor shall develop a corrective action notification form, or “Red-Tag” notice, for use in instances where a Customer sets out inappropriate materials for Collection, that explains the appropriate manner for Disposal of such items.
• Website – Contractor shall develop and maintain an interactive website to enable Customers to contact Contractor, and to display holiday schedules, Sharps program information, proper HHW disposal procedures, which materials are to be placed in Recycling Containers, and other useful information.
• Twitter Account – Contractor shall maintain a Twitter account for the dissemination of information regarding environmental and local community news. Contractor shall offer social media consultation to any Hermosa Beach-based organization.
5.2.3 Contractor Representative
Contractor shall retain on its staff an individual who shall, as part of his or her job function, routinely visit civic groups, school assemblies and science classes, homeowners’ associations, Multi-Family complexes and businesses, town hall-type outreach meetings, to promote and explain the Recycling programs Contractor offers, promote re-use and Recycling, and participate in demonstrations and civic events.
5.2.4 Community Events
At the direction of City, Contractor shall participate in and promote Recycling and other Diversion techniques at community events including Earth Day, and other local activities. Such participation would normally include providing, without cost, Collection and educational and publicity information promoting the goals of City's Integrated Solid Waste Management program and give-a-ways promoting waste reduction and reuse, such as reusable bags.
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If requested by City, Contractor shall conduct community disaster and emergency preparedness classes for all residents at Contractor’s expense. Contractor will assist conducting and promoting community recycling drives, partnering with the City, nonprofit organizations, businesses, the Chamber of Commerce and other organizations, and providing staff, containers, and container transportation for use at the events.
5.2.5 School Outreach
At no additional cost, Contractor shall contact all K-12 public schools in the City of Hermosa Beach at least once per school year to offer to conduct assemblies, and to prepare and provide classroom materials (not curriculum), to educate students regarding Recycling and other Solid Waste-related topics. Materials provided shall be in sufficient quantities to service all classrooms and students for which materials are requested, and shall be subject to City approval. Contactor shall provide in-classroom and on-campus Recycling Containers at no cost to schools or City.
5.2.6 Business Outreach
Contractor shall conduct a program to recognize businesses making positive environmental efforts and participating in Recycling programs. Awards will be presented annually at an annual event, Council meeting or award ceremony to be mutually agreed upon by City and Contactor, Contractor shall provide selected companies with an award to be mutually agreed upon by City and Contractor.
Contractor will provide business managers with promotional information, flyers and instructional posters made from recycled paper and labeled “Made from Recycled Paper” to implement a comprehensive waste reduction and recycling program, including information on what cannot be placed in the recycling container (i.e.: HHW).
Contractor shall develop a comprehensive program to promote the following:
• Reduce solid waste disposal and promote recycling;
• Become energy and water efficient;
• Purchase products that are less harmful to human health and the environment; • Minimize pollution contributions;
• Help improve indoor air quality and reduce smog formation; and, 1223
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• Educate businesses and their customers and employees about green business practices.
Contractor shall provide initial and on-going consultation and support to businesses who request it to assist in the development and continuation of their business’ waste reduction and recycling programs.
5.2.7 Multi-Family Outreach
Contractor will provide all property managers and Residents with Bin service with Recycling program guidelines, posters to be placed in laundry rooms, Refuse/Recyclable Container enclosures and other community areas at each building, and other outreach materials tailored to Multi-Family Bin Customer service. When contacting Multi-Family Customer building owner or property manager in accordance with Section 4.2.2, Contractor shall provide educational materials, and offer training to owner/manager in how to work with tenants to Recycle. Contractor shall provide each building owner and property manager with welcome packets for owner/manager to provide to each new resident upon move-in; packets will include information on what should be placed in the recyclables containers.
5.2.8 Facility Tours
Upon thirty (30) days’ notice, Contractor shall provide City Customers and organizations tours of its Recycling and other Solid Waste facilities at no cost to City, Customers or organizations.
Such tours shall not unreasonably disrupt facility operation. City shall not be charged for labor, overhead, overtime, or any other costs associated with such tours. As part of such tours, Contractor shall distribute an educational brochure, printed on recycled paper, on conservation, Recycling, and general Solid Waste management programs.
5.2.9 Free Mailing of City Materials
Contractor will include in its Billing statements, at no charge to City, a City-generated semi-annual waste and recycling insert, and/or any other mailing inserts provided by City. Such material may be included on a quarterly basis at City’s request. These mailings are in addition to any other Contractor public education and distribution requirements under this Agreement.
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5.2.10 Mighty Mike Mascot
Contractor shall provide its Mighty Mike mascot truck at City-sponsored events at no additional charge for community events. Truck should be requested by the City 30 days in advance from Contractor’s Route Supervisor, Operations Manager or General Manager, and the truck will be tailored to fit the theme of the event. Contractor shall be responsible for delivery, display and demonstration of the vehicle throughout the course of the events, removal, and any other associated costs of providing this truck for such events.
5.2.11 Presentations to City Council
Contractor, on request, shall present to the City Council updates on changing Solid Waste-related regulations and technologies and their potential impact on the City.
5.2.12 Guest Speaker and Writing Assistance
City may require Contractor to provide guest speakers at community events and assistance with drafting written materials, such as articles and press releases, for Solid Waste-related topics.
5.3 Waste Generation/Characterization Studies
Contractor acknowledges that City must perform Solid Waste generation and Disposal characterization studies periodically to comply with the requirements of AB 939.
Contractor agrees to participate and cooperate with City and its agents and to accomplish studies and data collection and prepare reports, as needed and directed by City, to determine weights and volumes of Solid Waste Collected and characterize Solid Waste generated, disposed, transformed, diverted or otherwise handled/processed, by Customer type (Single Family, Multi-Family, Commercial), to satisfy the requirements of AB 939 and the City’s sustainability and environmental objectives. Contractor will at its sole expense conduct such a waste generation and characterization study upon request of City, but not more than once every two (2) years.
5.4 Community Support
Contractor shall support the following events:
Sunset Concerts – through annual sponsorship
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Fiesta Hermosa – through annual sponsorship and through providing employee volunteers at event
Hermosa Beach Murals Project – Corporate membership contribution of $1,000 Hermosa Beach Education Foundation – Contractor shall match contributions to this foundation made by any Contractor employee, provide four $500 scholarships per year, and provide volunteer hours for foundation events. Hermosa Beach Historical Society – Business membership of $50 Hermosa Beach Sister Cities – Corporate membership of $250 Hermosa Beach Friends of the Library – Annual donation of $500 Hermosa Beach Friends of the Park – Annual donation of $500 Other non-profit organizations – Additional $10,000 (funding or in-kind services) to be distributed to organizations as directed by the City.
5.6 Neighborhood Safety Watch
Contractor shall specially train drivers to recognize and report potentially dangerous, criminal, unusual or suspicious situations to local law enforcement. 1226
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ARTICLE 6
CONTRACTOR COMPENSATION AND RATES
6.1 General
The maximum rates set forth in Exhibit 2, and as more fully defined as Contractor Compensation in this Article, shall be the maximum amount that Contractor may charge Customers, as full, entire and complete compensation due pursuant to this Agreement for all labor, equipment, materials and supplies, City fees, taxes, insurance, bonds, letters of credit, overhead, Disposal, transfer, profit and all other things necessary to perform all the services required by this Agreement in the manner and at the times prescribed. Contractor shall impose no other charges for services provided to Customers unless approved by the City Manager.
6.2 Initial Rates
The maximum rates that Contractor may charge Customers from July 1, 2013 through June 30, 2014, shall not exceed the maximum rates set forth in Exhibit 2.
6.3 Schedule of Future Adjustments
6.3.1 Request Submittal
Beginning with the Rate Year starting July 1, 2014 and ending on June 30, 2015, and for all subsequent Rate Years, Contractor may request an annual adjustment to the maximum rates shown in Exhibit 2. The Contractor shall submit its request in writing, to be received by City in person or via certified mail, by the preceding March 1, and shall be based on the method of adjustment described in Section 6.4. Failure to submit a written request by March 1 shall result in Contractor waiving the right to request such an increase for the subsequent Rate Year.
6.3.2 Approval Process
Annual adjustment to the maximum rates calculated in accordance with Section 6.4 is subject to the approval of the City Manager, with any other adjustments subject to approval of City Council. If a rate adjustment requested per this Section 6.3 is determined by the City to be accurately calculated in accordance with Agreement 1227
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procedures, and would otherwise have been approved by the City Council, but is prevented from implementation due to a protest under Proposition 218, then Contractor is permitted to terminate this Agreement upon 24-month written notice to City, but shall not be entitled to compensation from City or Customers for lost revenue due to the Proposition 218 protest.
6.4 Method of Adjustments
6.4.1 General
Pursuant to Section 6.3, Contractor may request an adjustment to the maximum rates according to the method described below, subject to review and approval of City. All future adjustments approved under Sections 6.3 and 6.4 are to be effective July 1. (Note that the following rate adjustment formulas shall apply to the rates net of AB 939 fee, as AB 939 fees are adjusted in accordance with Section 3.6.)
6.4.2 Cost Components for Rate Adjustment Indices
The approved Company Compensation consists of the following cost component categories. Each cost component may be adjusted by the change in the corresponding index below. See Section 6.4.3 for detailed Company Compensation adjustment procedures.
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(1) If an index is discontinued, an alternative index must be approved by the City Manager.
6.4.3 Rate Adjustment Steps
Cart, Can, and Bin Rates
Bin, Can, and Cart rates will be adjusted using the cost component weightings identified above for Bin, Can, and Cart rates as described below. See Exhibit 3A.
Step One – Calculate the percentage increase or decrease in each index listed in Section
6.4.2. The increase or decrease in the published indices for labor, fuel, equipment, disposal and all other (CPI) will be the change in the average annual published index between the 12-months ended the September prior to the Rate Year anniversary date and prior 12-month average (See Exhibit 3C).
Step Two – The first rate adjustment cost components as a percentage of total costs are provided in Section 6.4.2 above, with subsequent components calculated in Step Four of the rate adjustment. For Step Two of each subsequent rate adjustment, use the cost components recalculated in Step Four during the previous rate adjustment.
Bin/Cart/
Can/COD
Roll-Off Box
Pull Rate
Labor 25% 41%
Employment Cost Index CIU20100005200000I, Total
compensation, Private industry, Index number, Transportation and material moving
Fuel 5% 18%
Producer Price Index WPU 0531, Not seasonally adjusted, Fuels and related products and power, natural gas
Equipment 13% 13%
Producer Price Index, PCU336120336120, Heavy duty truck manufacturing
Processing/
Disposal 27% n/a
Consumer Price Index for All Urban Consumers
(CUUR0000SA0L1E), all items less food and energy index – U.S. city average or 5%, whichever is lower
All Other 30% 28%
Consumer Price Index for All Urban Consumers
(CUUR0000SA0L1E), all items less food and energy index – U.S. city average
Total 100% 100%
Cost Category Rate Adjustment Factor (1)
Initial
Weightings
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Multiply the percentage changes for each rate adjustment component by that component’s weighting and add these resulting percentages together to get the total weighted change to the rates. If this percentage change exceeds 5%, the change shall be capped at 5%.
Step Three – Multiply the total weighted percent change from Step Two by the existing Customer rates to calculate the increase or decrease to the maximum rates. Add the rate increase or decrease to the existing rates to derive the newly adjusted rates.
Step Four – Recalculate weightings for the following year based upon these changes. “Pull Plus Dump” Roll-Off Box Rates
Roll-Off Box pull rates (excluding disposal-inclusive COD rates) will be adjusted using the same methodology above, with the weightings identified above for Roll-Off Pulls.
The 5% cap on annual increases as described in Step 2 applies as well. The per ton RollOff Box Refuse Disposal rate shall adjust based upon the change in the disposal component of the rates (per the rate adjustment factor in Section 6.4.2). See Exhibit 3B.
6.4.4 Green Waste Rate Adjustment Upon Closure of Puente Hills The Residential Green Waste Cart rates for services provided under Section 4.3.1 shall increase by $0.30 per Cart per month upon the closure of Puente Hills Landfill, provided Contractor then transports material Collected on the Green Waste Cart route to Company’s American Organics facility in Victorville for composting. At this point, Food Waste will be permitted to be added to the Green Waste Carts for composting at no additional cost. This increase is the only compensation adjustment granted for the landfill closure and/or use of an alternative Green Waste facility.
6.5 Extraordinary Adjustments
Contractor may request an adjustment to maximum rates in the event of extraordinary changes in the cost of providing service under this Agreement. Extraordinary rate adjustments may be requested no more than once per year. Reasons for such extraordinary rate adjustment requests shall not include changes in Recyclable Material or Green Waste tipping fees or processing costs, changes in transformation costs, changes in the market value of Recyclables from the values assumed in Contractor's 1230
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Proposal, inaccurate estimates by the Contractor of its proposed cost of operations, unionization of Contractor’s work force, or change in wage rates or employee benefits.
Contractor may request an extraordinary adjustment based upon changes in a direct per ton fee assessed at the Disposal Site by federal, state or local regulatory agencies after the Effective Date. Extraordinary rate adjustments shall only be effective after approval by City Council and may not be applied retroactively. Should any such adjustment require a Proposition 218 hearing, Contractor shall bear all costs.
For each request for an adjustment to the maximum rates that Contractor may charge Customers brought pursuant to this section, Contractor shall prepare a schedule documenting the extraordinary costs. Such request shall be prepared in a form acceptable to City with support for assumptions made by Contractor in preparing the estimate. Contractor shall also submit a schedule showing how its total costs and total revenues have changed over the past three (3) years for the services provided under this Agreement.
City may request a copy of the Contractor’s annual financial statements in connection with the City’s review of Contractor’s rate adjustment request. City shall review the Contractor’s request and, in City’s sole judgment and absolute, unfettered discretion, make the final determination as to whether an adjustment to the maximum rates will be made, and, if an adjustment is permitted, the appropriate amount of the adjustment.
City may consider increases or decreases in the Contractor’s total revenues and total cost of services when reviewing an extraordinary rate adjustment request.
6.6 Redelivery/Return Trip Fee
Contractor may charge a fee, per the approved rate schedule, in the event that Contractor arrives on time for a scheduled Collection of Bins or Roll-off Boxes, is impeded from Collection due to Container being blocked or otherwise unable to be Collected due to issues within the Customer’s control, and Contractor must return a second time for Collection. Charge may be assessed for the trip, not per Bin or Roll-off Box, in the event of a Customer with multiple Bins or Roll-off Boxes. In event of dispute between Contractor and Customer over application of this fee, City Manager shall resolve the dispute.
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6.7 Customer Billing and Contractor Compensation
6.7.1 Residential Customers Receiving Individual-Unit Service Contractor shall Bill individually-serviced Residential Customers quarterly, no sooner than the first day of the quarter for which services are being Billed. Contractor assumes the risk of non-payment.
6.7.2 Permanent Bin and Roll-Off Box Customers
Contactor shall Bill permanent Bin and Roll-Off Box Customers monthly, no sooner than the first day of the month for which service is being Billed, with payment due no sooner than thirty (30) days after the invoice date. Contractor assumes the risk of nonpayment by Bin Customers.
6.7.3 Temporary Services Billing
Contractor shall Bill for temporary Roll-off Box and Bin services, and other special charges, as permitted in Exhibit 2. For established Commercial accounts, Contractor shall Bill monthly, no sooner than the first day of service, and require payment no sooner than thirty (30) days from the start of the service period Billed for.
For Customers without an established, on-going service accounts, Contractor will accept major credit cards for payment. Such Customers who do not use credit cards may be required by the Contractor to post a security deposit or to pay on a “Cash on Delivery” (C.O.D.) basis. Any unused portion of a security deposit will be refunded to the Customer within five (5) business days of the termination of service.
6.7.4 Contractor’s Invoices
All Bills must include service description, including Container size, frequency of service, any special services (such as scout or push-out service), and period billed for.
City must approve Contractor Billings as to content and format of invoice. All Bills must carry a due date, not “due upon receipt.” Bills will not separately itemize City fees, surcharges, disposal components or other breakdown of rates without advance written approval from City. Bills shall include Contractor’s telephone number for Billing and service inquiries.
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6.7.5 Billing Disputes
If any Customer disputes a Billing statement provided by Contractor, Contractor shall provide notice thereof to the City Manager, with a copy of the Billing invoice and the nature of the dispute (including copies of any correspondence from the Customer).
Contractor shall use its best efforts to resolve such disputes within seven (7) days of receipt of notice from the Customer of such dispute. If such dispute cannot be mutually resolved by the Contractor and the Customer within such seven (7) day period, the dispute will be submitted to the City Manager for binding dispute resolution.
Contractor acknowledges that the determination of the City Manager relating to such dispute shall be final and un-appealable.
6.7.6 Delinquent Accounts
Contractor shall be responsible for collecting unpaid Customer Billings, subject to limitations under this section. City will assist the Contractor with collections by putting delinquencies on the County property tax roll after the delinquency notes have been delivered, but is not liable for any bad debt.
Residential Cart/Can Service
For late payments, Contractor shall follow procedures below:
1. The first delinquency notice may be sent with the subsequent quarterly Billing, with a copy sent to the City Manager. A 10% late payment fee may be added to the outstanding, late balance.
2. The second delinquency notice may be sent no sooner than thirty (30) days following the first notice, with a copy sent to the City Manager. A second 10% late payment fee may be added to the outstanding, late balance.
Bin, Commercial Cart/Can and Roll-Off Box Service
1. The first delinquency notice may be sent with the subsequent monthly Billing, with a copy to the City Manager. A 10% late payment fee may be added to the outstanding, late balance.
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2. The second delinquency notice may be sent thirty (30) days after the first, warning that service may be suspended, with a copy to the City Manager. A second 10% late payment fee may be added to the outstanding, late balance.
3. Anytime following the second delinquency notice, Contractor shall send a notice warning that service will be suspended within seven (7) days, with copy to City Manager. Contractor may suspend service after seven (7) days with written City approval.
City may prohibit suspension of service to Residential Cart/Can Customers, and may request that service be continued or resumed for delinquent Residential Bin Customers on a case-by-case basis due to code enforcement issues; in such cases, City shall not be liable to Contractor for service costs not recovered by Contractor.
6.7.7 Customer Billing Adjustments
Should Contractor determine that Contractor has under-billed a Customer, or Customers, Contractor may back-Bill for no more than six (6) months. If it is determined by the City Manager that the under-billing was entirely due to an error or omission on the part of the impacted Customer, Contractor may request authority from the City Manager to back-bill longer than six months. Reimbursements to Customers for overbilling are not limited.
If Contractor Bills Customers for any service charges not on the City-approved rate schedule, or not otherwise approved in writing by the City, such charges shall be refunded to Customers at City request.
6.7.8 Exemption from Service
Residents may request a temporary exemption from service due to non-occupancy, construction, documentation of self-hauled Disposal, or other reasons as set forth in the Hermosa Beach Municipal Code. Contractor shall be responsible for administering exemption procedures, pursuant to the requirements in the Hermosa Beach Municipal Code. City may provide or revise Contractor guidelines to exempt properties from receiving, and paying Contractor for, Solid Waste Collection service. Exempt properties may include vacant or unoccupied properties, or properties in which owners can document alternative means of self-haul Disposal.
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6.7.9 Active Military Rate Reductions
Contractor shall provide a 25% rate reduction to monthly Residential Cart rates for active members of the military. As active military may be stationed away from home for periods of time, this rate reduction would apply to the property so long as the military member maintains the property as his or her permanent residence. The City Manager shall make the final determination as to permanent residence status based on evidence provided by person requesting discount
6.7.10 Senior Low-Income Rate Reduction
Contractor shall provide a 10% rate reduction to seniors sixty-two years of age or older that meet the criteria for low-income rate reductions offered by local utility companies, including California Alternative Rates for Energy, or CARE, and meet the following criteria. Qualifying Customer shall subscribe to Cart Collection service with Refuse Cart sizes of 35- to 96-gallons. (The 20-gallon Refuse Cart service rate is considered a reduced rate without further reduction.) Qualifying Customer shall be the head of the household with the Solid Waste Collection account in his/her name and shall reside in the applicable home. The discount is not applicable to Landlords or Bin Customers.
Contractor shall be solely responsible for administering this rate reduction program. If Parties dispute the applicability of the rate reduction, the City Manager may, but is not obligated to, make a final determination as to applicability. 1235
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ARTICLE 7
REVIEW OF SERVICES AND PERFORMANCE
7.1 Performance Review Meeting
City may hold a meeting or a public hearing annually to review Contractor’s Solid Waste Collection efforts, source reduction, processing and other Diversion services and overall performance under this Agreement (the “Solid Waste Services and Performance Review Meeting”). The purpose of the Solid Waste Services and Performance Review Meeting is to provide for a discussion and review of technological, economic, and regulatory changes in Collection, source reduction, Recycling, processing and Disposal to achieve a continuing, advanced Solid Waste Collection, source reduction and Recycling and Disposal system; and to ensure services are being provided by Contractor with adequate quality, effectiveness and economy, and in full compliance with the terms of this Agreement. Topics for discussion and review at the Solid Waste Services and Performance Review Meeting shall include, but shall not be limited to, services provided, feasibility of providing new services, application of new technologies, Customer complaints, amendments to this Agreement, developments in the law, new initiatives for meeting or exceeding AB 939's goals, regulatory constraints, results of route audits, and Contractor performance. City and Contractor may each select additional topics for discussion at any Solid Waste Services and Performance Review Meeting.
City shall notify Contractor of its intent to hold a Solid Waste Services and Performance Review Meeting at least sixty (60) days in advance thereof. Thirty (30) days after receiving notice from City of a Solid Waste Services and Performance Review Meeting, Contractor shall submit a report to City which may contain such information as it wished to have considered, and shall contain the following:
a) Current Diversion rates and a report on Contractor’s outreach activities for the past year.
b) Recommended changes and/or new services to improve City's ability to meet waste diversion goals and to contain costs and minimize impacts on rates. A specific plan for compliance with State diversion goals shall be included. c) Any specific plans for provision of new or changed services by Contractor. 1236
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The reports required by this Agreement regarding Customer complaints shall be used as one basis for review of Contractor’s performance, and Contractor may submit other relevant performance information and reports for consideration at the Solid Waste Services and Performance Review Meeting. In addition to the above, City may request Contractor to submit any other specific information relating to its performance for consideration at the Solid Waste Services and Performance Review Meeting, and any Customer may submit comments or complaints during or before the Meeting, either orally or in writing. Contractor shall be present at and participate in the Solid Waste Services and Performance Review Meeting.
As a result of its findings following any Solid Waste Services and Performance Review Meeting, City may require Contractor to provide expanded or new services within a reasonable time and City may direct or take corrective actions for any performance inadequacies (although nothing contained in this provision should be construed as requiring City to hold a Solid Waste Services and Performance Review Meeting in order to enforce any rights or remedies it has pursuant to the terms hereof.) Should City require expanded or new services as a remedy for Contractor’s failure to perform its obligations hereunder, no additional compensation shall be due for such services.
Otherwise, any new or expanded services required of Contractor shall be subject to the provisions of Section 2.10.
7.2 Performance Satisfaction Survey
If requested by the City, Contractor will create and conduct a survey at Contractor’s expense in preparation for any Solid Waste Services and Performance Review Meeting held pursuant to Section 7.1. City shall notify Contractor of its desire for such a survey at least ninety (90) days in advance of the Solid Waste Services and Performance Review Meeting. The purpose of the survey is to determine Customer satisfaction with current Collection services and Customer service provided by Contractor. The Survey will be distributed to a minimum of five percent (5%) of the Residential Customers and ten percent (10%) of the Commercial Customers, selected at random. City may instruct Contractor to send out separate Single Family and Multi-Family/Commercial surveys.
Contractor shall obtain City’s approval of each survey’s content, format, and mailing list prior to its distribution. City may require that Contractor have Customer responses to the survey returned directly to City. The survey results shall be made available to the City thirty (30) days prior to the Solid Waste Services and Performance Review Meeting.
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7.3 Route Audit
Once during the first year, and thereafter at City request (but not more frequently than once per year), Contractor shall conduct an audit of its Residential and/or Commercial Collection routes in the City. City may use information from the audit to develop a request for proposals for a new service provider. City may instruct Contractor when to conduct the audit in order for the results to be available for use in preparation of a request for proposals or for other City uses. City may also instruct Contractor to conduct an audit at a time that would produce the most accurate Customer service information for a new service provider to use in establishing service with Customers.
In setting these audit dates, City will establish due dates for Contractor providing routing and account information, and later, the report, to City.
The route audit, at minimum, shall consist of an independent physical observation by person(s) other than the route driver of each Customer in City. This person(s) is to be approved in advance by City. The route audit information shall include, as a minimum, the following information for each account:
For Residential Cart Customers (Residential Route Audit):
Route number;
Truck number;
Number and size of Carts by waste stream (Refuse, Recycling, Green Waste); Service address; and,
Cart condition.
For Residential Bin, Commercial Bin and Cart, and permanent Roll-off Customers (Commercial Route Audit):
Route number;
Truck number;
Account name;
Account number;
Account service address;
Account type (Residential, Commercial, Roll-off);
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Service level per Contractor Billing system (quantity, size, frequency); Observed Containers (quantity and size).
Container condition;
Proper signage; and,
Graffiti.
Within thirty (30) days after the completion of the route audit, Contractor shall submit to City a report summarizing the results of the audit. This summary shall include:
Identification of the routes;
Route map;
Truck numbers;
Number of accounts, by route and in total (Residential, Commercial and Roll-off Box);
Confirmation that all routes are dedicated exclusively to City Customers, or that the tonnage allocation methodology has been approved by the City; Number and type of exceptions observed;
Total monthly service charge (Residential, Commercial and Roll-off Box), pre-audit; and,
Total monthly service charge (Residential, Commercial and Roll-off Box), post-audit (subsequent to corrections of identified exceptions).
The report shall include a description of the procedures followed to complete the route audit. This description shall include the names and titles of those supervising the route audits and the names and titles of those performing the observations.
The report shall also include a description of the changes and Contractor’s plans to resolve the exceptions. The results of the audit, and supporting back-up data, shall be available for review by City or its representative and shall be made available in an electronic or printed format.
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ARTICLE 8
RECORDS, REPORTS AND INFORMATION REQUIREMENTS
8.1 General
Contractor shall maintain such accounting, statistical and other records related to its performance under this Agreement as shall be necessary to develop the financial statements and other reports required by this Agreement. Also, Contractor agrees to conduct data collection, information and record keeping, and reporting activities needed to comply with applicable laws and regulations, to meet the reporting and Solid Waste program management needs of City, and to evaluate progress on meeting the City’s sustainability and environmental objectives. To this extent, such requirements set out in this and other articles of this Agreement shall not be considered limiting or necessarily complete. In particular, this article is intended to only highlight the general nature of records and reports and is not meant to define exactly what the records and reports are to be and their content. Further, with the written direction or approval of City, the records and reports to be maintained and provided by Contractor in accordance with this and other Articles of the Agreement shall be adjusted in number, format, or frequency.
8.2 Records
8.2.1 General
Contractor shall maintain records required to conduct its operations, to support requests it may make to City, and to respond to requests from City in the conduct of City business. Adequate record security shall be maintained to preserve records from events that can be reasonably anticipated such as a fire, theft and earthquake.
Electronically maintained data/records shall be protected and backed up to the satisfaction of the City. All records shall be maintained for five (5) years, and shall continue to be available for five (5) years after the expiration of this Agreement, except as otherwise provided in this Agreement. After minimum holding periods are met, Contractor will notify City ninety (90) days before destroying records.
Contractor agrees that the records of any and all companies conducting operations addressed in the Agreement shall be provided or made available to City and its official 1240
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representatives during normal business hours. Account histories shall be accessible to the City by computer for a minimum of five (5) years. City may review or utilize any of the records described in this section. Such records include, but are not limited to, financial, Solid Waste, CERCLA and Disposal records.
8.2.2 Financial Records
Contractor shall maintain financial records relating to its operations pursuant to this Agreement separate and segregated from such records relating to its other operations.
Contractor shall maintain at least the following records:
• Audited financial statements for Contractor or, if a guarantee was provided, for the parent company guarantor as a whole;
• Financial statements (compiled, reviewed or audited) of revenue and expense for this Agreement segregated from the other operations of Contractor (including without limitation those operations of Contractor in City and surrounding jurisdictions which are not covered by this Agreement), including a description of segregation methodology; and,
• Complete descriptions of related party transactions (corporate and/or regional management fees, intercompany profits from transfer, processing or Disposal operations).
8.2.3 Solid Waste Records
Contractor shall maintain and make available to the City upon request the following records relating to its operations pursuant to this Agreement:
a) Customer services and Billing/City payment records;
b) Records of tons Collected, processed, diverted and Disposed by waste stream (Refuse, Recycling and Green Waste), by Customer type (Cart/Can, Residential Bin, Commercial and Roll-off Box), and the Facilities (Transfer Station, MRF, or landfill) where such material was taken (Residential Bin versus Commercial Bin tonnage may be estimated based upon Container distribution or other method approved by City);
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c) Quantity of Recyclable Materials recovered by material type, as well as quantity of material diverted from landfills in compliance with AB 939; d) Bulky Item and special event tonnages, including tons disposed and diverted; e) Routes;
f) Facilities, equipment and personnel used;
g) Facilities and equipment operations, maintenance and repair; h) Number and type of Refuse, Recycling and Green Waste Containers in service by container type (Cart, Can, Bin, Roll-Off Box) and size; i) Complaints; and,
j) Missed pickups.
8.2.4 CERCLA Defense and Disposal Records
The City views the ability to defend against CERCLA, State Hazardous Substance Law, and related litigation as a matter of great importance. For this reason, the City regards the ability to prove where Solid Waste Collected in the City was taken for Disposal, as well as where it was not taken, to be matters of concern. The Contractor shall maintain data retention and preservation systems that can establish where Solid Waste Collected in the City was landfilled (and therefore establish where it was not landfilled) and provide a copy of disposal reports for twenty-five (25) years and the other reports required in Section 8.2.3 for five (5) years after the term during which Collection services are to be provided pursuant to this Agreement, or to provide copies of such records to the City. Contractor shall continue to retain records in accordance with Section 8.2.3 for five (5) years, and disposal records for twenty-five (25) years, after the term during which Collection services are to be provided pursuant to this Agreement.
Contractor agrees to notify the City’s Risk Manager and the City Attorney at least ninety (90) days before destroying such records. This provision shall survive the expiration of the period during which Collection services are to be provided under this Agreement.
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8.2.5 Other Programs' Records
Records for other programs shall be tailored to specific needs. In general, they shall include:
a) Plans, tasks, and milestones; and,
b) Accomplishments in terms such as dates, activities conducted and numbers of participants and responses; and,
c) Records relating to programs or other activities undertaken by Contractor pursuant to the Agreement that may help City to complete reporting related to the City’s sustainability and environmental objectives.
8.2.6 Audit
City may conduct an audit of Contractor at any time. The scope of the audit and auditing party will be determined by City, and the scope may include, but is not limited to, compliance with terms of this Agreement, Customer service levels and Billing, fee payments, Gross Receipts, tonnage and verification of Diversion rate.
Contractor will fund biennial audits. The first hauler-funded audit, to be performed following the 2014 fiscal year, will be based on the Contractor’s reports and records for fiscal year 2013/14. Contractor-funded audits will be performed every other year thereafter. Contractor will reimburse to the City the cost of such audits up to $80,000 for the first audit, and up to $50,000 for each subsequent biennial audit in 2014 dollars.
The $50,000 amount in subsequent years shall be increased annually by the change in CPI identified in Section 6.4 as the change to the “all other” component.
Should an audit conducted or authorized by the City disclose that fees payable by Contractor were underpaid by three percent (3%) or more, that tonnage was misreported by three percent (3%) or more, or that more than three percent (3%) of the Customers were inaccurately Billed based on the auditor’s sampling for the period under review, City may expand the scope of the audit and recover additional audit costs from the Contractor.
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8.2.7 Payments and Refunds
Should an audit disclose that fees payable by the Contractor were underpaid or that Customers were overcharged for the period under review, Contractor shall pay to City any underpayment of fees and/or refund to Contractor's Customers or to City, as directed by City, any overcharges within thirty (30) days following the date of the audit; reimbursement to City or Customers for underpayments and overcharges may be limited to three (3) years. Contractor credit for overpayment of City fees shall be limited to three (3) years. Contractor shall pay interest to the City for any underpayment or overcharges at an annual rate of twelve percent (12%). Undercharges shall not be billed in arrears for more than six (6) months of service, with any remaining undercharges absorbed by Contractor. Should an audit disclose that fees were overpaid, City may credit such amounts against future fees payable by Contractor or may select another method of reimbursement.
8.3 Reports
8.3.1 Report Formats and Schedule
Records shall be maintained in forms and by methods that facilitate flexible use of data contained in them to structure reports, as needed. Contractor may propose report formats that are responsive to the objectives and audiences for each report. The format of each report shall be approved by City. In addition to submitting all reports on paper, Contractor agrees to submit all reports in an electronic format approved by City, compatible with City’s software/computers at no additional charge.
Reports shall be submitted within thirty (30) calendar days after the end of the reporting period. Annual reports for which a date is not otherwise specified in this Agreement shall be submitted within thirty (30) calendar days after the end of the fiscal year. If requested, Contractor’s complaint summary, described in Section 5.1.2, shall be sent to the City Manager within five (5) business days of request.
All reports shall be submitted to:
City Manager
City of Hermosa Beach
1315 Valley Drive
Hermosa Beach, California 90254
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8.3.2 Monthly Reports
The information listed below shall be the minimum reported:
a) Solid Waste Collected by Contractor, sorted by type of Solid Waste Collected and diverted (Refuse, Recycling and Green Waste) in tons (including contamination and Diversion rates for each waste stream and Customer type), Customer type (Cart/Can, Bin and Roll-off Box) and the Facilities where the tons were processed or Disposed.
b) Warning notices issued for contaminated Refuse, Recyclable Materials and Green Waste Containers.
c) Narrative summary of problems encountered and actions taken with recommendations for City, as appropriate.
d) Description of Contractor outreach activities and copies of promotional and public education materials sent during the month.
e) Other information or reports that City may reasonably request or require.
Note: Monthly fee payment statement supporting calculation of monthly fees due per Article 3 shall be submitted separately, accompanying the fee payment.
8.3.3 Annual Report
The annual report shall include:
a) A summary of the number of Containers in service as of December 31 by size (number of gallons, number of yards), sector (Residential Cart, Residential Can, Commercial Cart, Commercial Can, Residential Bin, Commercial Bin and Roll-off Box), service frequency, and type of service (Refuse, Recycling and Green Waste).
Identify which Containers represent free City services. b) Records of tons Collected, processed, diverted and disposed by waste stream (Refuse, Recycling and Green Waste), by Customer type (Cart/Can, Bin and Rolloff Box). c) Number of routes and route hours per day by type of service as of June 30. d) General information about the Contractor and its most recent annual report. e) Other information or reports that City may reasonably request or require. 1245
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f) Gross annual Billings by service sector (Cart/Can, Bin and Roll-off Box).
8.3.4 Financial Report
The City may, at City’s option, request and be provided with Contractor's financial reports/statements for the most recently completed fiscal year in connection with any audit, extraordinary rate adjustment request, or verification of other information required under this Agreement.
The financial statements and footnotes shall be prepared in accordance with Generally Accepted Accounting Principles (“GAAP”) and audited, in accordance with Generally Accepted Auditing Standards (“GAAS”), by a certified public accountant (“CPA”) licensed (in good standing) to practice public accounting in the State of California as determined by the State of California Department of Consumer Affairs Board of Accountancy. The cost of preparation of the financial statements and audit shall be borne by Contractor as a direct cost of service.
In addition to the above audited financial statements, Contractor shall provide to City the supplemental schedule of results of operations in the City on a compiled basis. The supplemental schedule will show Contractor’s specific revenues and expenses in connection with the operations provided for in this Agreement, separated from operations in other geographical areas. The supplemental schedule need not be audited and may be internally prepared; however, the total results of Contractor’s operations per the supplemental schedule must agree to the audited financial statements.
8.4 Reporting Adverse Information
Contractor shall provide City two (2) copies (one to the City Manager, one to the City Attorney) of all reports, pleadings, applications, notifications, notices of violation, communications or other material relating in any way to Contractor’s performance of services pursuant to this Agreement, submitted by Contractor to, or received by Contractor from, the United States or California Environmental Protection Agency, CalRecycle, the Securities and Exchange Commission or any other federal, state or local agency, including any federal or state court. Copies shall be submitted to City within thirty (30) days of receipt by Contractor, or sooner if reasonably apparent that to do so is materially relevant; any responses by Contractor shall be submitted to City simultaneously with Contractor’s filing or submission of such matters with said agencies. Contractor’s routine correspondence to said agencies need not be routinely 1246
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submitted to City, but shall be made available to City promptly upon City’s written request.
8.5 Right to Inspect Records
City shall have the right to inspect or review the specific documents or records required expressly or by inference pursuant to this Agreement, or any other similar records or reports of Contractor or its Affiliates that City shall deem, in its sole discretion, necessary to evaluate annual reports, and Contractor's performance provided for in this Agreement. Contractor shall make all records and documents to be reviewed and inspected by City as a part of any audit or other record review conducted by City, available for City’s review, inspection and copying within five (5) days of receiving written notice from City requesting the same.
8.6 Failure to Report
The refusal or failure of Contractor to file any required reports, or to provide required information to City, or the inclusion of any materially false or misleading statement or representation by Contractor in such report shall be deemed a material breach of the Agreement as described in Section 11.1 and shall subject Contractor to all remedies which are available to the City under Agreement or otherwise. 1247
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ARTICLE 9
INDEMNIFICATION, INSURANCE AND BOND
9.1 Defense of Agreement
Contractor agrees to, and shall timely, take all actions that are reasonably necessary to defend the validity and enforceability of this Agreement and shall pay all costs related to such defense. Contractor shall defend, indemnify, protect and hold harmless, the City, its officers, agents and employees from any and all claims, actions or proceedings to attack, set aside, void, annul or seek monetary damages resulting from an approval by the City of this Agreement. The City shall promptly notify Contractor of any such claim, action, or proceeding. The City and Contractor shall meet in good faith in an effort to come to a mutual agreement for a joint defense; provided that the City shall be entitled to select legal counsel of its choice to conduct the defense if an agreement cannot be reached. Contractor’s obligations to pay all costs, defend, indemnify, protect and hold harmless under this section shall not be altered in the event City retains separate counsel and shall also include reimbursement to City for time spent by its inhouse City attorneys responding to the litigation.
9.2 Indemnification
Contractor hereby agrees to and shall indemnify and hold harmless City, its elected and appointed boards, commissions, officers, employees, consultants and agents (collectively, “Indemnitees”) from and against any and all loss, liability, penalty, forfeiture, claim, demand, action, proceeding or suit in law or equity of any and every kind and description (including, but not limited to, injury to and death of any Person and damage to property, or for contribution or indemnity claimed by third parties) arising or resulting from and in any way connected with (1) the negligence or willful misconduct of Contractor, its officers, employees, agents, contractors and/or subcontractors in performing services under this Agreement; (2) the failure of Contractor, its officers, employees, agents, contractors and/or subcontractors to comply in all respects with the provisions of this Agreement, applicable laws (including, without limitation, the Environmental Laws), ordinances and regulations, and/or applicable permits and licenses; (3) the acts of Contractor, its officers, employees, agents, contractors and/or subcontractors in performing services under this Agreement 1248
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for which strict liability is imposed by law (including, without limitation, the Environmental Laws). The foregoing indemnity shall apply regardless of whether such loss, liability, penalty, forfeiture, claim, demand, action, proceeding, suit, injury, death or damage is also caused in part by any of the Indemnitees’ negligence, but shall not extend to matters resulting from the Indemnitees’ sole negligence, or willful misconduct. Contractor further agrees to and shall, upon demand of City, at Contractor's sole cost and expense, defend (with attorneys acceptable to City) the Indemnitees against any claims, actions, suits in law or equity or other proceedings, whether judicial, quasi-judicial or administrative in nature, arising or resulting from any of the aforementioned events, and to reimburse City for any and all costs and expenses City incurs in providing any such defense, either before, during or after the time Contractor elects to provide such defense, including any and all costs incurred in overseeing any defense to be provided herein by Contractor.
Contractor, upon demand of City, made by and through the City Attorney, shall protect City and appear in and defend the Indemnitees in any claims or actions by third parties, whether judicial, administrative or otherwise, including, but not limited to disputes and litigation over the definitions of “Solid Waste” or “Recyclable Material,” the scope of the rights granted herein, conflicts between the rights granted herein and rights asserted by other Persons, or the limits of City’s authority with respect to the grant of licenses, or agreements, exclusive or otherwise, or asserting rights under the United States or California Constitutions or any federal or state law to provide Solid Waste Handling Services in the City.
THE PROVISIONS OF THIS SECTION SHALL NOT TERMINATE OR EXPIRE,
SHALL BE GIVEN THE BROADEST POSSIBLE INTERPRETATION AND SHALL
SURVIVE THE EXPIRATION OR EARLIER TERMINATION OF THIS
AGREEMENT.
9.3 Hazardous Substances Indemnification
A. Without regard to any insurance coverage or requirements, and without limiting the above general indemnification obligation in any way, Contractor specifically agrees to and shall, to the maximum extent permitted by law, defend (with counsel acceptable to City), reimburse, indemnify, and hold harmless Indemnitees from and against any and all claims, actions, liabilities, damages, demands, judgments, losses, costs, liens, expenses, suits, actions, attorneys' fees, consultant fees, penalties and any and all other 1249
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losses, damages, fees and expenses of whatever kind or nature ("Claims") (including but not limited to response costs, investigative costs, assessment costs, monitoring costs, treatment costs, cleanup costs, removal costs, remediation costs, and similar costs, damages and expenses) that arise out of, or are alleged to arise out of, or in any way relate to any action, inaction or omission of Contractor that:
1. results in any demand, claim, notice, order, or lawsuit, asserting that any Indemnitee is liable, responsible or in any way obligated to investigate, assess, monitor, study, test, treat, remove, remediate, or otherwise clean up, any Hazardous Contaminant (as defined herein); or
2. relates to material Collected, transported, Recycled, processed, treated or Disposed of by Contractor.
B. Contractor’s obligations pursuant to this section shall apply, without limitation, to:
1. any Claims brought pursuant to or based on the provisions of any Environmental Law;
2. any Claims based on, or arising out of, or alleged to be arising out of the ownership, use, lease, sale, design, construction, maintenance or operation of Contractor of any Facility;
3. any Claims based on or arising out of or alleged to be arising out of the marketing, sale, distribution, storage, transportation, Disposal, processing or use of any materials recovered by Contractor;
4. any Claims based on or arising out of, or alleged to be arising out of, any breach of any express or implied warranty, representation or covenant arising out of or in connection with this Agreement.
C. The foregoing indemnity and defense obligations shall apply irrespective of the negligence or willful misconduct of Contractor or any Affiliate of Contractor.
D. For purposes of this section, the term "Hazardous Contaminant" shall mean any Hazardous Substance, any Hazardous Waste, any crude oil or refined or unrefined petroleum product or any fraction or derivative thereof; and any asbestos or asbestoscontaining material. The term "Hazardous Contaminant" shall also include any and all 1250
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amendments to any referenced statutory or regulatory provisions made before or after the date of execution of this Agreement.
E. THE PROVISIONS OF THIS SECTION SHALL NOT TERMINATE OR EXPIRE,
SHALL BE GIVEN THE BROADEST POSSIBLE INTERPRETATION AND SHALL
SURVIVE THE EXPIRATION OR EARLIER TERMINATION OF THIS
AGREEMENT.
9.4 AB 939 Indemnification and Guarantee
A. Contractor agrees to indemnify and hold harmless City from and against all fines and/or penalties imposed by CalRecycle in the event the source reduction and Recycling goals or any other requirement of AB 939 are not met by City with respect to the waste stream Collected under this Agreement.
B. Contractor warrants and represents that it is familiar with City's waste characterization study as set forth in City's Source Recovery and Recycling Element (“SRRE”), and that it has the ability to and will provide sufficient programs and services to ensure City will meet or exceed the Diversion requirements (including, without limitation, amounts of Solid Waste to be diverted, time frames for Diversion, and any other requirements) set forth in AB 939, with respect to that portion of the Solid Waste generated in City that is the subject of this Agreement.
9.5 Insurance
Contractor shall procure and maintain during the entire Term of this Agreement the following types of insurance, and shall maintain the following minimum levels of coverage, which shall apply to any claims which may arise from or in connection with Contractor’s performance hereunder or the actions or inactions of any of Contractor’s officers, agents, representatives, employees, or subcontractors in connection with Contractor’s performance. The insurance requirements hereunder in no way limit Contractor’s various defense and indemnification obligations, or any other obligations as set forth herein.
A. Minimum Scope of Insurance. Coverage shall be at least as broad as:
1. The most recent editions of Insurance Services Office Commercial General Liability coverage ("occurrence" form CG 00 01).
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2. The most recent editions of Insurance Services Office form number CA 00 01 covering Automobile Liability, code 1 "any auto" and endorsement CA 00 25.
3. Workers' Compensation insurance as required by the Labor Code of the State of California and Employers Liability insurance.
4. Pollution and/or Environmental Impairment Liability Insurance B. Minimum Limits of Insurance. Contractor shall maintain in force for the term of this Agreement limits no less than:
1. Comprehensive General Liability: Five Million Dollars ($5,000,000) limit aggregate and Five Million Dollars ($5,000,000) limit per occurrence for bodily injury, Personal injury and property damage.
2. Automobile Liability: Five Million Dollars ($5,000,000) limit aggregate and Five Million Dollars ($5,000,000) single limit per accident for bodily injury and property damage.
3. Workers' Compensation and Employers Liability: Workers' compensation limits as required by the Labor Code of the State of California and Employers Liability limits of One Million Dollars ($1,000,000) per accident, One Million Dollars ($1,000,000) policy limit for bodily injury or disease; One Million Dollars ($1,000,000) per each employee bodily injury or disease.
4. Pollution and/or Environmental Impairment Liability: Three Million Dollars ($3,000,000) each occurrence/Ten Million Dollars ($10,000,000) policy aggregate covering liability arising from the release of waste materials and/or irritants, contaminants or pollutants. Contractor shall ensure that such coverage shall, if commercially available, without involvement of City, automatically broaden in its form of coverage to include legislated changes in the definition of waste materials and/or irritants, contaminants or pollutants. The policy shall stipulate this insurance is primary and no other insurance carried by City will be called upon to contribute to a loss suffered by Contractor hereunder and waive subrogation against City and other additional insureds. 1252
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C. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by City. At the option of City, either: the insurer shall reduce or eliminate such deductibles or self-insured retention’s as respects City, its officials, employees and agents; or Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses.
D. Other Insurance Provisions. The policies are to contain, or be endorsed to contain, the following provisions:
1. General Liability and Automobile Liability Coverages a) City, its elective and appointive boards, commissions, officials, employees, agents and volunteers are to be named as additional insureds as respects: liability arising out of activities performed by or on behalf of Contractor; products and completed operations of Contractor; Premises owned, leased or used by Contractor; or vehicles owned, leased, hired or borrowed by Contractor. The coverage shall contain no special limitations on the scope of protection afforded to City, its elective and appointive boards, commissions, officials, employees, agents or volunteers. b) Contractor's insurance coverage shall be primary insurance as respects City, its elective and appointive boards, commissions, officials, employees, agents and volunteers. Any insurance or selfinsurance maintained by City, its officials, elective and appointive boards, commissions, employees, agents or volunteers shall be excess of Contractor's insurance and shall not contribute with it. c) Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its officials, elective and appointive boards, commissions, employees, agents or volunteers. d) Coverage shall state that Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 1253
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e) The commercial general and automobile liability policies required by this Agreement shall allow City, as additional insured, to satisfy the self-insured retention (“SIR”) and/or deductible of the policy in lieu of the Contractor (as the named insured) should Contractor fail to pay the SIR or deductible requirements. The amount of the SIR or deductible shall be subject to the approval of the City Attorney and the Finance Director. Contractor understands and agrees that satisfaction of this requirement is an express condition precedent to the effectiveness of this Agreement. Failure by Contractor as primary insured to pay its SIR or deductible constitutes a material breach of this Agreement. Should City pay the SIR or deductible on Contractor’s behalf upon the Contractor’s failure or refusal to do so in order to secure defense and indemnification as an additional insured under the policy, City may include such amounts as damages in any action against Contractor for breach of this Agreement in addition to any other damages incurred by City due to the breach.
2. Workers' Compensation and Employers Liability Coverage - The insurer shall agree to waive all rights of subrogation against City, its officials, elective and appointive boards, commissions, employees, agents and volunteers for losses arising from work performed by Contractor for City.
3. All Coverages - Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to City.
E. Acceptability of Insurers. The insurance policies required by this section shall be issued by an insurance company or companies authorized to do business in the State of California and with a rating in the most recent edition of Best's Insurance Reports of size category VII or larger and a rating classification of A or better.
F. Verification of Coverage. Contractor shall furnish City with certificates of insurance and with original endorsements affecting coverage required by this clause.
Such certificates shall show the type and amount of coverage, effective dates and dates 1254
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of expiration of policies, and shall have all required endorsements. The certificates and endorsements for each insurance policy are to be signed by a Person authorized by that insurer to bind coverage on its behalf. The certificates and endorsements are to be on forms provided by or acceptable to City and are to be received and approved by City before work commences. City reserves the right to require complete, certified copies of all required insurance policies at any time.
Renewal certificates will be furnished periodically to City to demonstrate maintenance of the required coverage throughout the Term.
G. Companies and Subcontractors. Contractor shall include all companies and subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each contractor and subcontractor. All coverages for companies and subcontractors shall be subject to all of the requirements stated herein.
H. Required Endorsements
1. The Workers' Compensation policy shall contain an endorsement in substantially the following form:
"Thirty (30) days (or ten (10) days in the event of cancellation for nonpayment) prior written notice by certified mail, return receipt requested, shall be given to City in the event of cancellation, reduction in coverage, or non-renewal of this policy. Such notice shall be sent to:
City Manager
City of Hermosa Beach
1315 Valley Drive
Hermosa Beach, California 90254
2. The Comprehensive General Liability policy shall contain endorsements in substantially the following form:
a) "Thirty (30) days (or ten (10) days in the event of cancellation for non-payment) prior written notice shall be given to City in the event of cancellation, reduction in coverage, or non-renewal of this policy. Such notice shall be sent to:
City Manager
City of Hermosa Beach
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1315 Valley Drive
Hermosa Beach, California 90254
b) "Contractor agrees to endorse the third party general liability coverage required herein to include as additional insureds City of Hermosa Beach, its officials, employees and agents, using standard ISO endorsement No. CB 2010 with an edition date of 1985, or equivalent provisions as determined acceptable by the Office of the City Attorney for the City of Hermosa Beach in its sole discretion.
Contractor also agrees to require all contractors, subcontractors and anyone else involved in any way with the project contemplated by this agreement, to do likewise."
c) "This policy shall be considered primary insurance as respects any other valid and collectible insurance maintained by City, including any self-insured retention or program of self-insurance, and any other such insurance shall be considered excess insurance only." d) "Inclusion of City as an insured shall not affect City's rights as respects any claim, demand, suit or judgment brought or recovered against Contractor. This policy shall protect Contractor and City in the same manner as though a separate policy had been issued to each, but this shall not operate to increase Contractor's liability as set forth in the policy beyond the amount shown or to which Contractor would have been liable if only one party had been named as an insured."
e) “The City, as additional insured, shall be permitted to satisfy the self-insured retention (“SIR”) and/or deductible of the policy in lieu of the Contractor (as the named insured) should Contractor fail to pay the SIR or deductible requirements. “
I. Other Insurance Requirements
1. In the event any services are delegated to another company or subcontractor, Contractor shall require such company or subcontractor to provide statutory workers' compensation insurance and employer's liability insurance for all of the company’s or subcontractor's employees 1256
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engaged in the work in accordance with this Section 9.5. The liability insurance required by this Section 9.4 shall cover all companies or subcontractors or the companies or subcontractors must furnish evidence of insurance provided by it meeting all of the requirements of this Section
9.5. 2. Contractor shall comply with all requirements of the insurers issuing policies. The carrying of insurance shall not relieve Contractor of any obligation under this Agreement. If any claim exceeding the amount of any deductibles or self-insured reserves is made by any third Person against Contractor or any company or subcontractor on account of any occurrence related to this Agreement, Contractor shall promptly report the facts in writing to the insurance carrier and to City.
If Contractor fails to procure and maintain any insurance required by this Agreement, City may take out and maintain, at Contractor's expense, such insurance as it may deem proper and deduct the cost thereof from any moneys due Contractor.
9.6 Faithful Performance Bond
Concurrently with execution of this Agreement, Contractor shall deliver to City a performance bond in the sum of the amount of Five Hundred Thousand Dollars ($500,000), similar to the form provided in Exhibit 6, which secures the faithful performance of this Agreement, including, without limitation, payment of any penalty and the funding of any work to cure a breach of this Agreement. The bond shall contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his or her power of attorney.
9.7 Forfeiture of Performance Bond
In the event Contractor shall for any reason become unable to, or fail in any way to, perform as required by this Agreement, City may declare a portion or all of the performance bond which is necessary to recompense and make whole the City forfeited to the City. Upon partial or full forfeiture of the performance bond, Contractor shall restore the performance bond to its face amount within thirty (30) days of the City’s declaration. Failure to restore the performance bond to its full amount within thirty (30) days shall be a material breach of the Agreement.
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9.8 Performance Security Beyond Service Term
Some Agreement requirements extend beyond the Term and other requirements, such as minimum Diversion rates per Section 4.2.5, will not be substantiated until after the final service date. Therefore, Contractor shall not terminate the Performance Bond, and will renew them to ensure continuous availability to the City, until receiving a written release from the City. The Performance Bond will automatically expire at the end of twenty-four (24) months after the end of the Term, unless City has notified Contractor in writing as to a specific contractual area of concern yet to be resolved, instructing Contractor to retain all or a portion of the Performance Bond. Neither permission from the City to discontinue holding the Performance Bond, nor permitted expiration after twenty-four (24) months, shall relieve Contractor of payments to the City that may be due, or may become due.
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ARTICLE 10
CITY'S RIGHT TO CONTRACT WITH THIRD PARTIES TO PERFORM
FRANCHISED SERVICES
City may contract with another Solid Waste enterprise to Collect and transport Solid Waste in the event Contractor for any reason (except as provided below regarding Force Majeure) refuses or is unable to Collect Solid Waste for a period of more than fortyeight (48) hours. City must provide twenty-four (24) hours prior written notice to Contractor during such time before contracting with another solid waste enterprise. In such event Contractor must identify sources from which such substitute solid waste services are immediately available and reimburse City for all of its expenses for such substitute services during period in which Contractor does not provide Collection and transportation services required by this Agreement.
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ARTICLE 11
DEFAULT, REMEDIES AND LIQUIDATED DAMAGES
11.1 Events of Default
All provisions of this Agreement to be performed by Contractor are considered material. Each of the following (by way of example and not as an exhaustive list) shall constitute an event of default by the Contractor.
A. Fraud or Deceit or Misrepresentation. If the Contractor engages in, or attempts to practice, any fraud or deceit upon City or makes a misrepresentation regarding material information to City.
B. Insolvency or Bankruptcy. If Contractor becomes insolvent, unable, or unwilling to pay its debts, files a bankruptcy petition or takes steps to liquidate its assets.
C. Failure to Maintain Insurance Coverage and Valid Permits and Licenses. If Contractor fails to provide or maintain in full force and effect the Workers' Compensation, liability, or indemnification coverage, as well as valid permits and licenses as required by this Agreement.
D. Violations of Regulation. If Contractor violates any orders or filings of any regulatory body having jurisdiction over Contractor relative to this Agreement, provided that Contractor may contest any such orders or filings by appropriate proceedings conducted in good faith, in which case no breach of the Franchise and this Agreement shall be deemed to have occurred until a final decision adverse to the Contractor is entered.
E. Failure to Pay. If Contractor fails to make any payments required under this Agreement and/or refuses to provide City, within ten (10) days of the demand, with required information, reports, and/or records in a timely manner as provided for in the Agreement.
F. Failure to Cooperate with Audits. Failure to complete, perform or cooperate with any audit as described by this Agreement.
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G. Failure to Submit Reports or Documentation. Failure to complete or to provide required reports or documents to City as required by this Agreement.
H. Acts or Omissions.
A. Any act or omission by Contractor relative to the services provided under this Agreement which violates the terms, conditions, or requirements of this Agreement, or AB 939, or any law, statute, ordinance, order, directive, rule, or regulation issued pursuant to AB 939 shall constitute a default by Contractor. Any failure to correct or remedy any such violation within the time set in the written notice of the violation or, if Contractor cannot reasonably correct or remedy the breach within the time set forth in such notice, if Contractor should fail to commence to correct or remedy such violation within the time set forth in such notice and diligently effect such correction or remedy thereafter, shall constitute a default by Contractor.
B. Any situation in which Contractor or any of its officers, directors or employees is found guilty of any crime related to the performance of this Agreement, or of any crime related to anti-trust activities, illegal transport or Disposal of hazardous or toxic materials, or bribery of public officials shall constitute a default by Contractor.
The term “found guilty” shall be deemed to include any judicial determination that Contractor or any of Contractor’s officers, directors or employees is guilty as well as any admission of guilt by Contractor or any of Contractor’s officers, directors or employees including, but not limited to, the plea of “guilty”, “nolo contendere”, “no contest”, and “guilty to a lesser charge.”
I. False or Misleading Statements. Any representation or disclosure made to City by Contractor in connection with or as an inducement to entering into this Agreement, or any future amendment to this Agreement, which proves to be false or misleading in any material respect as of the time such representation or disclosure is made, whether or not any such representation or disclosure appears as part of this Agreement.
J. Attachment. The seizure of, attachment of, or levy on, the operating equipment of Contractor, including, without limits, its equipment, maintenance or office facilities, or any part thereof.
K. Suspension or Termination of Service. If Contractor ceases to provide all or a portion of the Collection, processing or Recycling services, or any other Solid Waste Handling Services as required under this Agreement (including, without limitation, 1261
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failure to provide service due to labor unrest including strike, work stoppage or slowdown, sick-out, picketing, or other concerted job action, unless all requirements of Section 11.4 are met) for two (2) or more consecutive days.
L. Failure to Provide Assurance of Performance. If Contractor fails to provide reasonable assurances of performance as required under Section 11.6.
M. Commingling of Recyclables With Refuse / Landfilling of Recyclables. If Contractor empties Containers of properly set out Recyclable Materials or Green Waste into a Refuse load, or transports Recyclable Materials or Green Waste to a landfill or other location at which the material will not be diverted from landfilling (with the exception of Green Waste used as alternative daily cover provided full Diversion credit is received).
N. Failure to Meet Section 4.2.5 Diversion Goal. Failure to meet the minimum recycling requirements identified in Section 4.2.5 for two (2) consecutive calendar years.
Contractor shall have five (5) business days from the time it is given notification by City to cure any default arising under subsections E, F, G, J, K, L and M provided, however, that City shall not be obligated to provide Contractor with a notice and cure opportunity if Contractor has committed the same or similar breach within a twentyfour (24) month period. It is expressly understood that Contractor is not entitled to receive notice of default, or to cure such default, with respect to those matters listed in subsections A, B, C, D, H, I, and N above.
11.2 Right to Terminate Upon Default and Right to Specific Performance If Contractor commits a material breach included in Section 11.1 above (and, if permitted to cure, does not cure it within the five days), City shall be entitled to unilaterally terminate this Agreement or impose other such sanctions (which may include financial sanctions, temporary suspensions or any other conditions it deems appropriate short of termination) as it shall deem proper. Should City decide to terminate this Agreement upon a default by Contractor, City shall have the right to do so upon giving ten (10) days’ notice to Contractor, and shall not be required to take any further action (such as holding any hearing, bringing any suit or taking any other action.)
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City may seek to revoke or suspend this Agreement for violation of any other provisions of this Agreement in accordance with the Hermosa Beach Municipal Code Section 8.12.090-130.
City's rights to terminate this Agreement and contract with third parties to perform services are not exclusive, and City's termination of this Agreement shall not constitute an election of remedies. Instead, such remedies shall be in addition to any and all other legal and equitable rights and remedies which City may have.
By virtue of the nature of this Agreement, the urgency of timely continuous and highquality service, the time required to effect alternative service, and the rights granted by City to Contractor, the remedy of damages for a breach hereof by Contractor is inadequate and City shall be entitled to seek injunctive relief and/or specific performance of any breach of this Agreement.
11.3 Liquidated Damages
A. General. City finds, and Contractor agrees, that as of the time of the execution of this Agreement, it is impractical, if not impossible, to reasonably ascertain the extent of damages which shall be incurred by City as a result of a breach by Contractor of certain specific obligations under this Agreement. The factors relating to the impracticability of ascertaining damages include, but are not limited to, the fact that: (i) substantial damage results to members of the public who are denied services or denied quality or reliable service; (ii) such breaches cause inconvenience, anxiety, frustration, and deprivation of the benefits of the Agreement to individual members of the general public for whose benefit this Agreement exists, in subjective ways and in varying degrees of intensity which are incapable of measurement in precise monetary terms; (iii) that the services that are the subject of this Agreement might be available at substantially lower costs than alternative services and the monetary loss resulting from denial of services or denial of quality or reliable services is impossible to calculate in precise monetary terms; and (iv) the termination of this Agreement for such specific breaches, and other remedies are, at best, a means of future correction and not remedies which make the public whole for past breaches.
B. Service Performance Standards; Liquidated Damages for Failure to Meet Standards. The Parties further acknowledge that consistent, reliable Solid Waste Handling Service is of utmost importance to City and that City has considered and 1263
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relied on Contractor's representations as to its quality of service commitment in entering this Agreement with it. The Parties further recognize that some quantified standards of performance are necessary and appropriate to ensure consistent and reliable service and performance. The Parties further recognize that if Contractor fails to achieve the performance standards, or fails to submit required documents in a timely manner, City and its residents will suffer damages and that it is and will be impractical and extremely difficult to ascertain and determine the exact amount of damages which City will suffer. Therefore, without prejudice to City's right to treat such breaches as an event of default under this Article 11, the Parties agree that the following liquidated damage amounts represent a reasonable estimate of the amount of such damages for such specific breaches, considering all of the circumstances existing on the date of this Agreement, including the relationship of the sums to the range of harm to City that reasonably could be anticipated and the anticipation that proof of actual damages would be costly or impractical. In placing their initials at the places provided, each party specifically confirms the accuracy of the statements made above and the fact that each party has had ample opportunity to consult with legal counsel and obtain an explanation of the liquidated damage provisions at the time that the Agreement was made.
Contractor City
Initial Here Initial Here
Contractor agrees to pay (as liquidated damages and not as a penalty) the amounts set forth below:
1. Collection Reliability
a) For each failure to commence service to a new Customer account within seven (7) days after order, which exceeds five (5) such failures per calendar year: $50.00
b) For each failure, which exceeds ten (10) such failures annually, to Collect Solid Waste from any established Customer account on the scheduled Collection day and not make up the Collection within the time allotted per Section 4.6.1.3: $50.00
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c) For each failure to Collect Solid Waste, which has been properly set out for Collection, from the same Customer on two (2) consecutive scheduled pickup days: $50.00
2. Collection Quality
a) For each occurrence of failure to properly return empty Containers to avoid pedestrian or vehicular traffic impediments or to place Containers upright which exceeds ten (10) such occurrences per calendar year: $25.00 b) For each occurrence in violation of the City’s noise ordinance which exceeds ten (10) per calendar year: $150.00
c) For each occurrence of Collecting Solid Waste during unauthorized hours which exceeds five (5) such occurrences per calendar year: $150.00 d) For each failure to clean up Solid Waste spilled from Solid Waste Containers within ninety (90) minutes which exceeds ten (10) such failures per calendar year: $150.00
3. Customer Responsiveness
a) For each failure to initially respond to a Customer complaint within one (1) business day in accordance with Section 5.1.2, and for each additional day in which the complaint is not addressed, which exceeds five (5) per calendar year: $100.00
b) For each failure to process Customer complaints as required by Article 5, Section 5.1.2, which exceeds five (5) per calendar year: $100.00 c) For each failure to remove graffiti from Containers, or to replace with Containers bearing no graffiti, within twenty-four (24) hours (except Sundays and holidays) of request from City or Customer, which exceeds five (5) per calendar year: $ 50.00 per day
d) For each failure to repair or replace a damaged or missing Container within three (3) business days of request from City or Customer, which exceeds five (5) per calendar year: $ 50.00 per day
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e) For each failure to process a claim for damages within thirty (30) days from the date submitted to Contractor: $100.00
f) For each additional thirty (30) day increment of time in which Contractor has failed to resolve a claim for damages within thirty (30) days from the claim date: $100.00
g) For each failure to respond on-site to an emergency within one hour of notification by City: $100.00
4. Diversion Efforts
a) For each calendar year in which Contractor fails to provide support to the City within thirty (30) days of year-end, documenting that it diverted at least the minimum tonnage required by Section 4.2.5 under this Agreement (beginning with the partial year July to Dec. 2013 as the first applicable period): $25 for each ton below tonnage level
necessary to meet Diversion goal
b) For every Recycling or Green Waste Container Collected as Refuse without issuing a red tag or other warning per Section 4.2.3 which exceeds ten (10) failures per calendar year: $25 per Cart
5. Timeliness of Submissions to City
Any report shall be considered late until such time as a correct and complete report is received by City. For each calendar day a report is late, the daily liquidated damage amount shall be:
i) Monthly Reports: $50 per day
ii) Annual Reports: $100 per day
6. Accuracy of Billing
Each Customer invoice that is not prepared in accordance with the City’s approved rate schedule, or includes charges not identified on the City-approved rate schedule or otherwise approved in writing by the City, in excess of ten (10) invoices annually, and that are not accurately corrected in the next Billing run:
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$25 per invoice, not to exceed $2,500 per Billing run
7. Cooperation with Service Provider Transition
a) For each day routing information requested by City Manager in accordance with Section 12.8 is received after City-established due dates, both for preparation of a request for proposals and for new service provider’s implementation of service : $1,000/day
b) For each day delivery of keys, access codes, remote controls, or other means of access to Solid Waste Containers is delayed beyond one (1) day prior to new service provider servicing Customers with access issues, as described in Section 12.8: $1,000/day
c) For delay in not meeting the requirements contained in Sections 7.3 and 12.8 in a timely manner, in addition to the daily liquidated damages for breach under 7(a) and 7(b) above, liquidated damages of: $10,000 City Manager may determine the occurrence of events giving rise to liquidated damages through the observation of its own employees or representative or investigation of Customer complaints.
Prior to assessing liquidated damages, City Manager shall give Contractor notice of its intention to do so. The notice will include a brief description of the incident(s)/nonperformance. Contractor may review (and make copies at its own expense) all information in the possession of City Manager relating to incident(s)/non-performance.
Contractor may, within ten (10) days after receiving the notice, request a meeting with City Manager. Contractor may present evidence in writing and through testimony of its employees and others relevant to the incident(s)/non-performance. City Manager will provide Contractor with a written explanation of its determination on each incident(s)/non-performance prior to authorizing the assessment of liquidated damages. The decision of City Manager shall be final.
C. Amount. City Manager may assess liquidated damages for each calendar day or event, as appropriate, that Contractor is determined to be liable in accordance with this Agreement.
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D. Timing of Payment. Contractor shall pay any liquidated damages assessed by City Manager within ten (10) days after they are assessed. If they are not paid within the ten (10) day period, City may proceed against the performance bond required by the Agreement or find Contractor in default and terminate this Agreement pursuant to Section 11.2, or both.
11.4 Excuse from Performance
11.4.1 Force Majeure
The Parties shall be excused from performing their respective obligations hereunder in the event they are prevented from so performing by reason of floods, earthquakes, other natural disasters, war, civil insurrection, riots, acts of any government (including judicial action), and other similar catastrophic events which are beyond the control of and not the fault of the party claiming excuse from performance hereunder.
11.4.2 Labor Unrest
Labor unrest, including but not limited to strike, work stoppage or slowdown, sick-out, picketing, or other concerted job action conducted by the Contractor's employees or directed at the Contractor will be considered an excuse from performance to the extent that Contractor meets the terms of this Section 11.4. Notwithstanding other remedies to which the City shall be entitled under this Agreement in event of failure to perform, in the event of Contractor’s failure to perform, or anticipated failure to perform, due to labor unrest, Contractor shall:
1) Provide a contingency plan to the City Manager within ninety (90) days of the execution of this Agreement demonstrating how services will be provided during the period of labor unrest. The contingency plan is subject to City approval, and Contractor shall amend the plan to meet City requirements, including reasonably demonstrating how City’s basic Collection and sanitary needs will be met to the City’s satisfaction. Plan shall address, at a minimum, the priority of Collection by customer type (residents, hospitals, restaurants, nursing homes, etc.) and waste streams, additional Collection options to be provided (drop-off sites, etc.), source of additional personnel to be utilized, and detailed communications procedures to be used.
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2) Notify City Manager sixty (60) days prior to the expiration of its drivers’ labor agreement.
3) Meet the requirements agreed to in the contingency plan. 4) Meet requirements of 11.4.3 below.
Contractor shall meet all requirements under this Section or City may choose to revoke this excuse from performance offered under this Agreement and may choose to use enforcement provisions under this Agreement, including Sections 11.1, 11.2 and 11.3, in which case Contractor is not excused from performance and Contractor shall be obligated to continue to provide service notwithstanding the occurrence of any or all of such events.
11.4.3 Procedures In Event of Excused Performance
The party claiming excuse from performance under Section 11.4.1 or 11.4.2 shall, within two (2) days after such party has notice of such cause, give the other party notice of the facts constituting such cause and asserting its claim to excuse under this section.
Throughout service disruption, Contractor shall:
1) Provide City with a minimum of daily service updates. 2) Notify Customers on a real-time basis as to alternative Collection procedures. At a minimum, Contractor shall update its website and shall provide ongoing updates to City for use on its website, and a “reverse 911” contact method to reach all possible Customers. Should enhanced contact technologies become available, Contractor shall use such methods upon approval from City.
The interruption or discontinuance of the Contractor's services caused by one or more of the events excused shall not constitute a default by the Contractor under this Agreement. Notwithstanding the foregoing, however, if the Contractor is excused from performing its obligations hereunder for any of the causes listed in this section for a period of thirty (30) days or more, the City shall nevertheless have the right, in its sole discretion, to terminate this Agreement by giving ten (10) days' notice, in which case the provisions relative to contracting with third parties in Article 10 and this Article 11 will apply.
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11.5 Notice, Hearing and Appeal of City Breach
(A) Administrative Hearing. Should Contractor contend that City is in breach of any aspect of this Agreement, it shall give notice to the City Manager requesting an administrative hearing on the allegation. A hearing officer shall be appointed by the City Manager, and the hearing shall occur as soon as reasonably possible, or on such date as mutually agreed by the City Manager. The hearing officer shall make an advisory ruling on Contractor’s allegations, and suggest a remedy if a breach by City is determined to exist. The hearing officer’s ruling shall be advisory only. (B) Other Remedies; Claims. Contractor shall be entitled to all available remedies in law or equity for City’s breach of this Agreement; provided, however, Contractor shall not file or otherwise commence any action against City, in law or equity, in any court, until after an administrative hearing as set forth above has been completed, and a thirty (30) day period to accept the hearing officer’s decision has passed, or either City or Contractor has given timely written notice to the other that it will not accept the hearing officers decision.
(C) Actions for Damages. As a prerequisite to the filing and maintenance of any action for damages by Contractor against City arising out of this Agreement, Contractor shall present a claim to City, as required by Government Code section 910 et seq, within thirty (30) days of the date of the occurrence giving rise to the claim for damages.
11.6 Assurance of Performance
City may, at its option and in addition to all other remedies it may have, demand from Contractor reasonable assurances of timely and proper performance of this Agreement, in such form and substance as City may require. If Contractor fails or refuses to provide satisfactory assurances of timely and proper performance in the form and by the date required by City, such failure or refusal shall be an event of default. 1270
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ARTICLE 12
MISCELLANEOUS PROVISIONS
12.1 Relationship of Parties
The Parties intend that Contractor shall perform the services required by this Agreement as an independent contractor engaged by City and not as an officer or employee of City, nor as a partner of or joint venture with City. No employee or agent or Contractor shall be or shall be deemed to be an employee or agent of City. Except as expressly provided herein, Contractor shall have the exclusive control over the manner and means of conducting the Solid Waste Handling Services performed under this Agreement, and all Persons performing such services. Contractor shall be solely responsible for the acts and omissions of its officers, employees, Affiliates, contractors, subcontractors and agents. Neither Contractor nor its officers, employees, Affiliates, contractors, subcontractors and agents shall obtain any rights to retirement benefits, workers' compensation benefits, or any other benefits which accrue to City employees by virtue of their employment with City.
12.2 Compliance with Law
In providing the services required under this Agreement, Contractor shall at all times, at its sole cost, comply with all applicable laws and regulations of the United States, the State of California, and any federal, state, regional or local administrative and regulatory agencies, now in force and as they may be enacted, issued or amended, including but not limited to the payment of prevailing wage, if applicable.
12.3 Governing Law
This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California.
12.4 Jurisdiction
Except for those matters where Federal Courts have exclusive jurisdiction, any lawsuits between the Parties arising out of this Agreement shall be brought and concluded in the courts of the State of California, which shall have exclusive jurisdiction over such lawsuits.
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With respect to venue, the Parties agree that this Agreement is made in and will be performed in Los Angeles County.
12.5 Assignment
Except as may be provided for in Article 10 (City's Right to Perform Service), Contractor shall not assign its rights, nor delegate, subcontract or otherwise transfer its obligations under this Agreement (collectively referred to as an “assignment”) to any other Person without the prior written consent of City Council. Any such assignment made without the consent of City shall be void and the attempted assignment shall constitute a material breach of this Agreement.
For purposes of this section the term "assignment" shall be given the broadest possible interpretation, and shall include, but not be limited to (i) a sale, exchange or other transfer of substantially all of Contractor's assets dedicated to service under this Agreement to a third party; (ii) a sale, exchange or other transfer of outstanding common stock of Contractor to a third party provided said sale, exchange or transfer may result in a change of control of Contractor; (iii) any dissolution, reorganization, consolidation, merger, re-capitalization, stock issuance or re-issuance, voting trust, pooling agreement, escrow arrangement, liquidation or other transaction which results in a change of ownership or control of Contractor; (iv) any assignment by operation of law, including those resulting from mergers or acquisitions by or of Contractor of any of its Affiliates, insolvency or bankruptcy, making assignment for the benefit of creditors, writ of attachment for an execution being levied against this Agreement, appointment of a receiver taking possession of Contractor's property, or transfer occurring in the event of a probate proceeding; and (v) any combination of the foregoing (whether or not in related or contemporaneous transactions) which has the effect of any such transfer or change of ownership, or change of control of Contractor.
Contractor acknowledges that this Agreement involved rendering a vital service to City's residents and businesses, and that City has selected Contractor to perform the services specified herein based on (1) Contractor's experience, skill and reputation for conducting its Solid Waste Handling Services in a safe, effective and responsible fashion, at all times in keeping with applicable Environmental Laws, regulations and best Solid Waste management practices, and (2) Contractor's financial resources to maintain the required equipment and to support its indemnity obligations to City under 1272
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this Agreement. City has relied on each of these factors, among others, in choosing Contractor to perform the services to be rendered by Contractor under this Agreement.
If Contractor requests City's consideration of and consent to an assignment, City may deny or approve such request in its sole and absolute discretion. Any request for an assignment must be approved by the City Manager, and no request by Contractor for consent to an assignment need be considered by City unless and until Contractor has met (or with respect to matters that would only occur upon completion of the assignment if approved, made reasonable assurances that it will meet) the following requirements:
a) Contractor shall pay City its reasonable expenses for attorney's fees and investigation costs necessary to investigate the suitability of any proposed assignee, and to review and finalize any documentation required as a condition for approving any such assignment. An advance payment towards expenses may be requested by City prior to City consideration of any assignment request and Contractor shall be responsible to pay all costs incurred by City in considering a request for assignment, including those in excess of the aforesaid deposit amount, regardless of whether City consents to the assignment. b) Contractor shall pay a transfer fee to the City equal to one percent (1%) of the annual Gross Receipts for the most recent twelve (12) months prior to the effective date of the change of ownership, multiplied by the number of remaining years, or fraction thereof, under this Agreement. (This requirement will not be required in the event of an assignment to an Affiliate of Contractor); c) Contractor shall furnish City with audited financial statements for itself, and the proposed assignee's operations for the immediately preceding three (3) operating years. (This requirement shall not be required of an Affiliate.) d) Contractor shall furnish City with a pro-forma financial statement (income statement and balance sheet) for the proposed assignee with the projected results of operations assuming that the assignment is completed. Such pro-forma financial statement shall reflect any debt to be incurred by the assignee as part of the acquisition of Contractor’s operations. (This requirement shall not be required of an Affiliate.)
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e) Contractor shall furnish City with satisfactory proof: (i) that the proposed assignee has at least ten (10) years of Solid Waste management experience on a scale equal to or exceeding the scale of operations conducted by Contractor under this Agreement; (ii) that in the last five (5) years, the proposed assignee has not suffered any significant citations or other censure from any federal, state or local agency having jurisdiction over its Solid Waste management operations due to any significant failure to comply with state, federal or local Environmental Laws and that the assignee has provided City with a complete list of any such citations and censures; (iii) that the proposed assignee has at all times conducted its operations in an environmentally safe and conscientious fashion; (iv) that the proposed assignee conducts its Solid Waste management practices in accordance with sound Solid Waste management practices in full compliance with all federal, state and local laws regulating the Collection and Disposal of Solid Waste including Hazardous Substances; and, (v) of any other information required by City to ensure the proposed assignee can fulfill the terms of this Agreement in a timely, safe and effective manner.
Under no circumstances shall City be obliged to consider any proposed assignment by City if Contractor is in default at any time during the period of consideration. Should City consent to any assignment request, such assignment shall not take effect until all conditions relating to City’s approval have been met.
12.6 Contracting or Subcontracting
Contractor shall not utilize any subcontractors, in direct interaction with City customers or City staff, for the performance of the services under this Agreement, except with the consent of the City Manager, which may be withheld or delayed at its sole and absolute discretion.
12.7 Binding on Assigns
The provisions of this Agreement shall inure to the benefit to and be binding on the permitted assigns (if any) of the Parties.
12.8 Cooperation in Preparation for Termination or Expiration of Contract Prior to, and at, the end of the Term or in the event this Agreement is terminated for cause prior to the end of the Term, Contractor shall cooperate fully with City and any 1274
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subsequent Solid Waste enterprise it designates to assure a smooth transition of Solid Waste Handling Services. Contractor's cooperation shall include, but not be limited to, providing route lists, Billing information and other operating records needed to service all Premises covered by this Agreement. Cooperation is required in a timely manner to assist with the City’s preparation of a request for proposals or a new agreement, as well as at the time of transition. The failure to cooperate with City following termination shall be conclusively presumed to be grounds for specific performance of this covenant and/or other equitable relief necessary to enforce this covenant.
Contractor shall provide a new service provider with all keys, security codes and remote controls used to access garages and Bin enclosures. Contractor shall be responsible for coordinating transfer immediately after Contractor’s final pickups, so as not to disrupt service. Contractor shall provide City with detailed route sheets containing service names and addresses, Billing names and addresses, monthly rate and service levels (number and size of Containers and pickup days) at least ninety (90) days prior to the transition date, and provide an updated list two (2) weeks before the transition and a final list of changes the day before the transition. Contractor shall provide means of access to the new service provider at least one (1) full business day prior to the first day of Collection by another party, and always within sufficient time so as not to impede in any way the new service provider from easily servicing all Containers.
12.9 Parties in Interest
Nothing in this Agreement, whether express or implied, is intended to confer any rights on any Persons other than the Parties to it and their representatives, successors and permitted assigns.
12.10 Waiver
The waiver by either party of any breach or violation of any provisions of this Agreement shall not be deemed to be a waiver of any breach or violation of any other provision nor of any subsequent breach of violation of the same or any other provision.
The subsequent acceptance by either Party of any moneys which become due hereunder shall not be deemed to be a waiver of any pre-existing or concurrent breach or violation by the other Party of any provision of this Agreement.
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12.11 Contractor's Investigation
Contractor has made an independent investigation (satisfactory to Contractor) of the conditions and circumstances surrounding the Agreement and the work to be performed by it.
12.12 Condemnation
City fully reserves the rights to acquire Contractor's property utilized in the performance of this Agreement, by purchase or through the exercise of the right of eminent domain. This provision is additive, and not intended to alter the rights of the Parties set forth in Article 10.
12.13 Notice
All notices, demands, requests, proposals, approvals, consents and other communications which this Agreement requires, authorizes or contemplates shall be in writing and shall either be personally delivered to a representative of the Parties at the address below or be deposited in the United States mail, first class postage prepaid, addressed as follows:
If to City:
City Manager
City of Hermosa Beach
1315 Valley Drive
Hermosa Beach, California 90254
If to Contractor: Gary Clifford
Chief Operating Officer
Athens Services
14048 Valley Boulevard
City of Industry, California 91746
A copy of such communications shall also be electronically mailed to the recipient party. The sending party shall confirm the current e-mail address of the City Manager or Chief Operating Officer at the time of notice. The address to which communications may be delivered may be changed from time to time by a written notice given in accordance with this section.
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Notice shall be deemed given on the day it is personally delivered or, if mailed, three (3) days from the date it is deposited in the mail.
12.14 Representatives of the Parties
References in this Agreement to the "City" shall mean the City Council and all actions to be taken by City shall be taken by the City Council except as expressly provided herein.
The City Council may delegate, in writing, authority to the City Manager, and/or to other City employees and may permit such employees, in turn, to delegate in writing some or all of such authority to subordinate employees. Contractor may rely upon actions taken by such delegates if they are within the scope of the authority so delegated to them.
Contractor shall, by the Effective Date, designate in writing a responsible officer who shall serve as the representative of Contractor in all matters related to the Agreement and shall inform City in writing of such designation and of any limitations upon his or her authority to bind Contractor. City may rely upon action taken by such designated representative as actions of Contractor unless they are outside the scope of the authority expressly delegated to him/her by Contractor as communicated to City.
12.15 City Free to Negotiate with Third Parties
City may investigate all options for the Collection, transporting, Recycling, processing and Disposal of Solid Waste for periods during which this Agreement has expired or been terminated. Without limiting the generality of the foregoing, City may solicit proposals from Contractor and from third parties for the provision of Solid Waste Handling Services which are the subject of this Agreement, including without limitation Collection services, Disposal services, Recycling services, Green Waste services and processing, and any combination thereof, and may negotiate and execute agreements for such services which will take effect upon the expiration or earlier termination of this Agreement pursuant to Section 11.1 or otherwise.
12.16 Compliance with Municipal Code
Contractor shall comply with those provisions of the municipal code of City which are applicable, and with any and all amendments to such applicable provisions during the Term of this Agreement.
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May 24, 2013 -130- City of Hermosa Beach
12.17 Privacy
Contractor shall strictly observe and protect the rights of privacy of Customers.
Information identifying individual Customers or the composition or contents of a Customer's waste stream shall not be revealed to any Person, governmental unit, private agency, or company, unless upon the authority of a court of law, by statute, or upon valid authorization of the Customer. This provision shall not be construed to preclude Contractor from preparing, participating in, or assisting in the preparation of waste characterization studies or waste stream analyses which may be required by AB 939. This provision shall not apply to reports or records provided to City pursuant to this Agreement.
12.18 Proprietary Information, Public Records
The City acknowledges that a number of the records and reports of Contractor are proprietary and confidential. Contractor is obligated to permit City inspection of its records on demand and to provide copies to City where requested. City will endeavor to maintain the confidentiality of all proprietary information provided by Contractor.
Notwithstanding the foregoing, any documents provided by Contractor to City that are public records may be disclosed pursuant to a proper public records request.
12.19 Entire Agreement
This Agreement contains the entire integrated agreement and understanding concerning the subject matter herein and supersedes and replaces any prior negotiations, promises, proposals (including Contractor’s Proposal), and agreements between the Parties, whether written or oral. The Parties acknowledges this document has been executed with the consent and upon the advice of counsel. Each of the Parties acknowledges that no Party or agent or attorney of any other party has made any promise, representation, or warranty, express or implied, not contained in this Agreement, to induce the other Party to execute this instrument.
12.20 Section Headings
The article headings and section headings in this Agreement are for convenience of reference only and are not intended to be used in the construction of this Agreement nor to alter or affect any of its provisions.
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May 24, 2013 -131- City of Hermosa Beach
12.21 References to Laws and Other Agreements
All references in this Agreement to laws shall be understood to include such laws as they may be subsequently amended or re-codified, unless otherwise specifically provided.
12.22 Interpretation
This Agreement, including the Exhibits attached hereto, shall be interpreted and construed reasonably and neither for nor against either Party, regardless of the degree to which either Party participated in its drafting.
12.23 Agreement
This Agreement may not be modified or amended in any respect except by a writing signed by the Parties.
12.24 Severability
If any non-material provision of this Agreement is for any reason deemed to be invalid and unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this Agreement which shall be enforced as if such invalid or unenforceable provision had not been contained herein.
12.25 Exhibits
Each of Exhibits identified as Exhibit "1" through "12" is attached hereto and incorporated herein and made a part hereof by this reference.
12.26 Attorneys’ Fees
If either Party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to recover its reasonable attorney’s fees and costs. Attorneys’ fees shall include attorney’s fees on any appeal, and in addition a Party entitled to attorney’s fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to 1279
May 24, 2013 -132- City of Hermosa Beach
have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment.
IN WITNESS WHEREOF, City and Contractor have executed this Agreement as of the day and year first above written.
CITY OF HERMOSA BEACH
("City")
DATED: _______________________________ DATED: _______________________________ CITY OF HERMOSA BEACH Arakelian Enterprises Inc. dba Athens Services By: ____________________________________ By: ____________________________________ Patrick Bobko Ron Arakelian Jr.
Mayor Chairman of the Board
Approved as to form:
By: ____________________________________ By: ____________________________________ Michael Jenkins Michael Arakelian
City Attorney Secretary/Treasurer
ATTEST:
_______________________________________
Elaine Doerfling
City Clerk
1280
May 24, 2013 City of Hermosa Beach
EXHIBIT 1
RESERVED
1281
May 24, 2013 2 - 1 City of Hermosa Beach
EXHIBIT 2
INITIAL MAXIMUM RATES
Following are the rates for July 1, 2013 through June 30, 2014:
Monthly Residential Cart Service Rates (Option 1: Cart System) Standard Service Includes one refuse cart and one or more recycling carts. Green waste carts are provided on a subscription basis.
Cart Size: 20-gallon* 35-gallon* 64-gallon* 96-gallon*
Standard Service – based upon refuse cart size $5.69 $6.69 $10.69 $14.69 Additional Refuse Cart – above one n/a $4.00 $6.00 $8.00 Additional Recycling Cart $0 $0 $0 $0
Each Yard Waste Cart n/a $3.70 $4.20 $4.70
Alternative “Can” Service (if carts not feasible) Equivalent cart rates based on capacity Active Military Rate Reduction – above rates reduced by 25% Senior Low Income Discount - above rates (excluding 20-gallon rate) reduced by 10% Other Cart Rates and Services (Charged in Addition to Monthly Cart Service Rates) Walk-Out Service – upon request $4.00
Walk-Out Service – authorized disabled customers No charge Additional Special Overage Pickup for Automated Cart Customers (in excess of six pickups per year)
$5 per pickup
Additional Bulky Item pickups (in excess of two free pickups per dwelling unit per year)
$30.00 per pickup
Cart Exchange (in excess of free exchanges to be provided) $15 per request Returned Check (“NSF”) Fee (applicable to all customers) Credit Card Declined Fee (applicable to all customers)
Optional HHW Door-to-Door Collection – per dwelling unit $0.45/month *Including all City fees, including $0.25/home/month AB 939 fee. 1282
May 24, 2013 2 - 2 City of Hermosa Beach
EXHIBIT 2
INITIAL MAXIMUM RATES (continued)
Following are the rates for July 1, 2013 through June 30, 2014:
Monthly Bin Rates(1)
Container Size
Pickups per week
1 2 3 4 5 6 7
Extra
Empty
Refuse
32-gallon cart (2) $23.33 $40.87 $57.45 $74.99 $91.56 $109.10 $136.29 64-gallon cart (2) $37.02 $64.39 $90.80 $117.2 $143.61 $170.98 $211.86 96-gallon cart (2) $50.69 $84.98 $119.26 $153.55 $187.83 $222.12 $256.40 1 yard bin $69.35 $104.56 $140.84 $176.06 $210.21 $246.49 $288.10 $40.50
1.5 yard bin $77.36 $117.38 $167.00 $197.42 $236.37 $315.86 $369.75 $40.50 2 yard bin $93.91 $145.14 $197.45 $248.69 $292.46 $337.30 $393.87 $40.50 3 yard bin 109.92 $170.77 $230.56 $291.41 $351.19 $410.98 $482.50 $52.07 4 yard bin $132.33 $204.93 $309.53 $351.20 $423.80 $497.46 $581.79 $52.07 6 yard bin $166.51 $258.34 $351.24 $443.08 $535.98 $627.82 $734.59 $52.07 8 yard bin $207.07 $322.40 $434.53 $545.59 $652.39 $764.52 $895.85 $61.78 Recycling
18-gallon cart (3) $7.41 n/a
32-gallon cart (3) $11.58 $20.27 $28.47 $37.15 $45.36 $54.04 $68.55 64-gallon cart (3) $18.34 $31.82 $44.87 $57.90 $70.93 $84.44 $104.70 96-gallon cart (3) $25.09 $41.98 $58.87 $75.75 $92.64 $109.53 $126.42 1 yard bin $30.88 $46.32 $62.24 $77.68 $92.64 $108.56 $126.90
1.5 yard bin $34.26 $51.63 $73.34 $86.37 $103.26 $138.48 $162.12 2 yard bin $41.50 $63.69 $86.37 $108.56 $127.38 $146.68 $171.29 3 yard bin $48.25 $74.31 $99.88 $125.93 $151.51 $177.08 $207.96 4 yard bin $57.90 $88.78 $134.14 $151.02 $181.90 $213.27 $249.45 Locking Bin Service $5.79 $5.79 $5.79 $5.79 $5.79 $5.79 $5.79 Scout Truck Service $11.57 $11.57 $11.57 $11.57 $11.57 $11.57 $11.57 Push-Out Service $11.57 $11.57 $11.57 $11.57 $11.57 $11.57 $11.57 (1) Including all City fees.
(2) Applicable to businesses. All residential cart customers are charged in accordance with the Residential Cart Service Rates on page 2-1.
(3) Not applicable to residents with cart refuse service; such customers receive recycling service at no additional charge.
1283
May 24, 2013 2 - 3 City of Hermosa Beach
EXHIBIT 2
INITIAL MAXIMUM RATES (continued)
Following are the rates for July 1, 2013 through June 30, 2014:
Additional Service Charges Rate Per Service*
Porter Service (total amount to be shared by affected customers per Section 4.1.14) $5,500 per month Commercial Bulky Item Pickup:
- 1 to 2 items $27.31/pickup
- 3 to 5 items $54.61/pickup
- 6 to 10 items $109.21/pickup
- Each additional item on same pickup $27.31/add’l item Bin Return Trip/Dry Run Fee $50.00 per trip
Bin Re-delivery Fee (if bins are pulled for non-payment) $45.00 per bin Bin Cleaning (over once per year) $40.00
3-yard Temporary Bin
- Per dump (delivery, disposal and 7-day rental included) $100.35 - Rental per day after 7 days without a dump
Special Event Litter Boxes
- Rate per box $4.50
- Rate per box of 200 liners $50.00
Emergency Service Rates – one crew and one collection truck $85.00/hour *Including all City fees, inclusive of AB 939 fees on page 2-5. 1284
May 24, 2013 2 - 4 City of Hermosa Beach
EXHIBIT 2
INITIAL MAXIMUM RATES (continued)
Following are the rates for July 1, 2013 through June 30, 2014:
Roll-off Box Charges Rate*
Roll-off Box Service – Pull Plus Dump
- Standard Roll-off Box (any size) - Rate per pull (including delivery, and rental)
$181.60 per pull
- Compactor roll-off box – Rate per pull (does not include provision of compactor)
20 yard compactor $198.52 per pull
30 yard compactor $201.02 per pull
40 yard compactor $203.52 per pull
- Compactor Monthly Lease $550.00 per month
Per Ton Rate $ 61.56 per ton
Per Ton Rate – Pier Compactor Roll-Off Only, for composting $ 65.00 per ton Per day rental after 7 days without a pull $10.00 per day Additional Roll-off Box Fees
- Overweight charge (per ton over ten tons/load) 25% of Per Ton Rate - Dry Run/Redelivery/Return Trip/Relocation Fee $50.00
*Including all City fees, inclusive of AB 939 fees on page 2-5. 1285
May 24, 2013 2 - 5 City of Hermosa Beach
EXHIBIT 2
INITIAL MAXIMUM RATES (continued)
AB 939 Fees Included in the Above Rates
1 2 3 4 5 6 7
32-Gallon Cart $ 0.17 $ 0.34 $ 0.51 $ 0.68 $ 0.85 $ 1.02 $ 1.19 64-Gallon Cart $ 0.35 $ 0.70 $ 1.05 $ 1.40 $ 1.75 $ 2.10 $ 2.45 96-Gallon Cart $ 0.51 $ 1.02 $ 1.53 $ 2.04 $ 2.55 $ 3.06 $ 3.57 1 Cubic Yard $ 1.08 $ 2.16 $ 3.24 $ 4.32 $ 5.40 $ 6.48 $ 7.56
1.5 Cubic Yard $ 1.62 $ 3.24 $ 4.86 $ 6.48 $ 8.10 $ 9.72 $ 11.34 2 Cubic Yard $ 2.17 $ 4.34 $ 6.51 $ 8.68 $ 10.85 $ 13.02 $ 15.19 3 Cubic Yard $ 3.25 $ 6.50 $ 9.75 $ 13.00 $ 16.25 $ 19.50 $ 22.75 4 Cubic Yard $ 4.33 $ 8.66 $ 12.99 $ 17.32 $ 21.65 $ 25.98 $ 30.31 6 Cubic Yard $ 6.50 $ 13.00 $ 19.50 $ 26.00 $ 32.50 $ 39.00 $ 45.50 8 Cubic Yard $ 8.66 $ 17.32 $ 25.98 $ 34.64 $ 43.30 $ 51.96 $ 60.62 Refuse
Container Size
Number of Collections per Week Container/Service Type
Roll-Off Box Pulls
Standard Roll-Off Box - 20, 30, 40 yard $ 10.00 per pull Compactor Roll-Off Box - 20 yard $ 5.00 per pull
Compactor Roll-Off Box - 30 yard $ 7.50 per pull
Compactor Roll-Off Box - 40 yard $ 10.00 per pull
Temporary Bin 3 Cubic Yard $ 0.75 per dump
AB 939 Fee
1286
May 24, 2013 3 - 1 City of Hermosa Beach
EXHIBIT 3A
EXAMPLE RATE ADJUSTMENT FORMULA – CART & BIN
Row Adjustment Factor Index
1 Labor (1) 109.7 112.2 2.3%
2 Fuel (2) 170.6 173.2 1.5%
3 Equipment (3) 125.1 129.1 3.2%
4 Disposal (4) 219.960 221.931 0.9%
5 All Other (5) 219.960 221.931 0.9%
Row Adjustment Factor Index
6 Labor (1) 25.0% 2.3% 0.6%
7 Fuel (2) 5.0% 1.5% 0.1%
8 Equipment (3) 13.0% 3.2% 0.4%
9 Disposal (4) 27.0% 0.9% 0.2%
10 All Other (5) 30.0% 0.9% 0.3%
11 Total 100.0% 1.6%
Row Example Rate
Categories
12 Res. service w/64-gal. refuse $ 10.69 1.6% $ 0.17 $ 10.86 13 Res. service w/32-gal. refuse $ 6.69 1.6% $ 0.11 $ 6.80 14 Extra 64-gal refuse cart $ 6.00 1.6% $ 0.10 $ 6.10
15 Extra 32-gal refuse cart $ 4.00 1.6% $ 0.06 $ 4.06
16 Alt.= Residential rate $ 10.69 1.6% $ 0.17 $ 10.86
17 3 cu.yd. bin 1x week $ 190.92 1.6% $ 3.05 $ 193.97
18 3 cu.yd. bin 2x week $ 170.77 1.6% $ 2.73 $ 173.50
19 3 yd bin, extra pickup $ 52.07 1.6% $ 0.83 $ 52.90
20 Commercial 96 gal. cart $ 50.69 1.6% $ 0.81 $ 51.50
Row Adjustment Factor Index
21 Labor (1) 25.0% 2.3% 0.6% 25.6% 25.2%
22 Fuel (2) 5.0% 1.5% 0.1% 5.1% 5.0%
23 Equipment (3) 13.0% 3.2% 0.4% 13.4% 13.2%
24 Disposal (4) 27.0% 0.9% 0.2% 27.2% 26.8%
25 All Other (5) 30.0% 0.9% 0.3% 30.3% 29.8%
26 Total 100.0% 101.6% 100.0%
(4) Consumer Price Index for All Urban Consumers, less food and energy, U.S. city average - average annual change* or 5%, whichever is lower. (5) Consumer Price Index for All Urban Consumers, less food and energy, U.S. city average - average annual change.* (7) Example rates listed. Adjustment applies to all applicable rate categories. * See Exhibit 3C.
(3) Producer Price Index, PCU336120336120, Heavy duty truck manufacturing - average annual change.* D
Step Two: Determine components
Old Index Value
Percent Change In
Index (from Column C)
H I
Total Weighted Change
(Columns D x E)
Cost Factor Category
Weighted as a % of
Component Total (6)
L
New Index Value
Percent Change In
Index ((Column B/
Column A) -1)
E F
Adjusted Cost
Component Weightings
(Column K +
Column M)
N
G J
Step Three: Apply percentage change to rates
Change in Cost
Component Weightings
(Column K x Column L)
K M O
Cost Components
Reweighted to Equal
100% (Column N Row
divided by Column N Total)
(1) Employment Cost Index CIU20100005200000I, Total compensation, Private industry, Index number, Transportation and material moving - average annual change.*
(2) Producer Price Index, WPU 0531 not seasonally adjusted, Fuels and related products and power, natural gas - average annual change.* (6) First year based on Section 6.4. After the first adjustment, this coumn comes from Column O of the previous year's rate adjustment worksheet.
Adjusted Rate
(Column G +
Column I)
Rate Increase or
Decrease
(Column G x Column H)
Current Customer
Rate (7)
Total Weighted
Percentage Change
(from Column F)
Step Four: Re-weight cost components
Cost Component
(Column D)
Percent Change in
Index (Column E) 1287
May 24, 2013 3 - 2 City of Hermosa Beach
EXHIBIT 3B
EXAMPLE RATE ADJUSTMENT FORMULA – ROLL-OFF BOX
Row Adjustment Factor Index
1 2 Labor (1) 109.7 112.2 2.3%
3 Fuel (2) 170.6 173.2 1.5%
4 Equipment (3) 125.1 129.1 3.2%
5 All Other (4) 219.960 221.931 0.9%
6 Refuse/Ton (5) 219.960 221.931 0.9%
Row Adjustment Factor Index
7 8 Labor (1) 41.0% 2.3% 0.9%
9 Fuel (2) 18.0% 1.5% 0.3%
10 Equipment (3) 13.0% 3.2% 0.4%
11 All Other (4) 28.0% 0.9% 0.3%
12 100.0% n/a 1.9%
13 Refuse/Ton (5) 100.0% 0.9% 0.9%
Row
14 $ 181.60 1.9% $ 3.45 $ 185.05
15 $ 201.03 1.9% $ 3.82 $ 204.85
16 Refuse/Ton (5) $ 61.56 0.9% $ 0.55 $ 62.11
Row Adjustment Factor Index
17 Labor (1) 41.0% 2.3% 0.9% 41.9% 41.1%
18 Fuel (2) 18.0% 1.5% 0.3% 18.3% 18.0%
19 Equipment (3) 13.0% 3.2% 0.4% 13.4% 13.2%
20 All Other (4) 28.0% 0.9% 0.3% 28.3% 27.7%
21 Total 100.0% 101.9% 100.0%
(4) Consumer Price Index for All Urban Consumers, less food and energy, U.S. city average - average annual change.* (5) Consumer Price Index for All Urban Consumers, less food and energy, U.S. city average - average annual change*, or 5%, whichever is lower.
Service Component Total
A
Service Component (Pull Rate)
C
Old Index Value
B
E
Service Component (Pull Rate)
Cost Factor Category
Weighted as a % of
Component Total (6)
D F
Total Weighted Change
(Columns D x E)
Percent Change In Index
(from Step One, Column C)
L M N
Step One: Calculate percentage change in indices
New Index Value
Percent Change In Index
((Column B/
Column A) -1)
Step Two: Determine components
Step Four: Re-weight service component cost components
O
Current Customer Rate
Total Weighted
Percentage Change (from
Column F)
Rate Increase or Decrease
(Column H x
Column I)
30 yd. Compactor Rolloff Box Pull
Rate
K
Rate Category
Step Three: Apply percentage change to rates
G H
Standard Rolloff Box Pull Rate
Adjusted Rate
(Column H +
Column J)
I J
* See Exhibit 3C.
Change in Cost
Component Weightings
(Column K x Column L)
Adjusted Cost Component
Weightings (Column K +
Column M)
Cost Components
Reweighted to Equal 100%
(Column N Row divided by Column
N Total)
Cost Component
(Column D)
(6) First year based on Section 6.4. After the first adjustment, this coumn comes from Column O of the previous year's rate adjustment worksheet.
Percent Change in Index
(Column E)
(1) Employment Cost Index CIU20100005200000I, Total compensation, Private industry, Index number, Transportation and material moving - average annual change.* (2) Producer Price Index, WPU 0531 not seasonally adjusted, Fuels and related products and power, natural gas - average annual change.* (3) Producer Price Index, PCU336120336120, Heavy duty truck manufacturing - average annual change.* 1288
May 24, 2013 3 - 3 City of Hermosa Beach
EXHIBIT 3C
EXAMPLE RATE ADJUSTMENT FORMULA - CALCULATION FOR
AVERAGE ANNUAL CHANGE IN PUBLISHED PRICE INDICES
Rate adjustment indices for labor, fuel, equipment and “all other” are calculated using the “average annual change” as demonstrated in the example below, measured for the twelve months ended the March before each rate adjustment, as compared to the twelve months ended the prior March. The Bureau of Labor Statistics publishes these monthly and quarterly indices.
The following example is for the Consumer Price Index for All Urban Consumers all items less food and energy index - U.S. City average that is used to adjust the “all other” cost components. If a rate adjustment based on this CPI index were to be implemented as of July 1, 2013, the twelve-month average annual index for the period ended September 2012 of 228.653 would have been the “New Index Value” to be used in Column B of the example rate adjustment formulas in Exhibits 3A and 3B, and the twelve-month average annual index for the period ended September 2011 223.808 would have been the “Old Index Value” in Column A. This would have resulted in a 2.2% increase to the “all other” cost components in Column C.
Consumer Price Index – All Urban Consumers, U.S. City Average All items less food and energy, CUUR0000SAOL1E
Year Jan Feb March April May June July August Sept Oct Nov Dec Average 2010 222.079 222.077 221.795
2011 222.177 223.011 223.690 224.118 224.534 224.891 225.164 225.874 226.289 223.808 2011 226.743 226.859 226.740
2012 227.237 227.865 228.735 229.303 229.602 229.879 229.893 230.196 230.780 228.653 Average Annual Change: 2.2%
1289
EXHIBIT 4
CITY LITTER AND RECYCLING CONTAINER COLLECTION MAP
May 24, 2013 4 - 1 City of Hermosa Beach
1290
May 24, 2013 5 - 1 City of Hermosa Beach
EXHIBIT 5
CORPORATE GUARANTY
Not Applicable
1291
May 24, 2013 City of Hermosa Beach
EXHIBIT 6
Contractor's Faithful Performance Bond
KNOW ALL MEN BY THESE PRESENTS:
That , a California , as PRINCIPAL, and
, a Corporation organized and doing business by
virtue of the laws of the State of California, and duly licensed for the purpose of making, guaranteeing, or becoming sole surety upon bonds or undertakings required or authorized by the laws of the State of California, as SURETY, are held and firmly bound to City, hereinafter called OBLIGEE, in the penal sum of five hundred thousand dollars ($500,000) lawful money of the United States, for the payment of which, well and truly to be made, we and each of us hereby bind ourselves, and our and each of our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.
NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH THAT:
WHEREAS, the above bounden PRINCIPAL has entered into a contract, entitled "INTEGRATED SOLID WASTE MANAGEMENT SERVICES" with City, to do and perform the following work, to wit: Collect, Process and dispose of Solid Waste generated within City, in accordance with the contract.
NOW, THEREFORE, if the above bounden PRINCIPAL shall well and truly perform, or cause to be performed each and all of the requirements and obligations of said contract to be performed by said PRINCIPAL, as in said contract set forth, then this BOND shall be null and void; otherwise it will remain in full force and effect.
And the said Surety, for value received hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the contract or to the work to be performed there under or the specifications accompanying the same shall in any wise affect its obligations on this BOND, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the contract or to the work or to the specifications.
1292
May 24, 2013 City of Hermosa Beach
In the event suit is brought by OBLIGEE to enforce the provisions of this bond, said Surety will pay to OBLIGEE a reasonable attorney’s fee, plus costs of suit, in an amount to be fixed by the court.
IN WITNESS WHEREOF, said PRINCIPAL and said SURETY have caused these presents to be duly signed and sealed this day of , 2013
a California Corporation SURETY
By: By:
(PRINCIPAL) (ATTORNEY IN FACT)
(SEAL) (SEAL)
1293
May 24, 2013 City of Hermosa Beach
EXHIBIT 7
RESERVED
1294
May 24, 2013 City of Hermosa Beach
EXHIBIT 8
INITIAL SCOUT SERVICE CUSTOMERS
835 15TH ST 1600 ARDMORE AVE 30 13TH ST
845 15TH ST 1500 THE STRAND 930 1ST ST
621 9TH ST 630 2ND ST 721 3RD ST
2411 PROSPECT AVE 904 AVIATION BLVD 940 1ST ST
540 1ST ST 926 1ST ST 2205 PACIFIC COAST HWY
417 25TH ST 837 5TH ST 1301 MANHATTAN AVE
1628 PROSPECT AVE 701 4TH ST 22 PIER AVE
708 8TH ST 1820 ARDMORE AVE 901 AVIATION BLVD
68 PIER AVE 1820 ARDMORE AVE 321 PIER AVE
73 PIER AVE 2001 PACIFIC COAST HWY 743 24TH PL
959 AVIATION BLVD 2001 PACIFIC COAST HWY 1310 PACIFIC COAST HWY 401 MANHATTAN AVE 933 6TH ST 53 PIER AVE
552 11TH PL 446 MONTEREY BLVD 801 20TH ST
50 PIER AVE 1286 THE STRAND 1200 PACIFIC COAST HWY
50 PIER AVE 625 7TH ST 30 HERMOSA AVE
65 PIER AVE 30 PIER AVE 2447 PACIFIC COAST HWY
950 ARTESIA BLVD 8 PIER AVE 2401 PACIFIC COAST HWY
833 5TH ST 20 13TH ST 2515 VALLEY DR
1830 HERMOSA AVE 1645 VALLEY DR 1850 PACIFIC COAST HWY
935 1ST ST 839 6TH ST 20 PIER AVE
615 3RD ST 700 PACIFIC COAST HWY 1720 ARDMORE AVE
53 PIER AVE 2121 PACIFIC COAST HWY 1050 AVIATION BLVD
1301 MANHATTAN AVE 49 PIER AVE 640-650 HERMOSA AVE
1707 PACIFIC COAST HWY 1314 LOMA DR 139 HERMOSA AVE
90 PIER AVE 11 PIER AVE 139 HERMOSA AVE
500 PACIFIC COAST HWY 100 MONTEREY BLVD 104 HERMOSA AVE 1837 PACIFIC COAST HWY 950 1ST ST 417 25TH ST
972 ARTESIA BLVD 444 HERMOSA AVE 669 4TH ST
501 HERONDO ST 320 MASSEY ST 1072 AVIATION BLVD
712 9TH ST 15 15TH ST 21 PIER AVE
26 PIER AVE 1272 THE STRAND 1221 HERMOSA AVE
538 8TH ST 957 1ST ST 1016 THE STRAND
2100 PACIFIC COAST HWY 74 PIER AVE 31 PIER AVE
37 PIER AVE 720 21ST ST 36 PIER AVE
718 21ST ST 736 GOULD AVE 52 PIER AVE
867 AUBREY CT 1803 PACIFIC COAST HWY 415 HERONDO ST
447 HERONDO ST 834 1ST ST 414 2ND ST
19 PIER AVE 1134 CYPRESS AVE 660 5TH ST
960 1ST ST 710 9TH ST 39 PIER AVE
802 PACIFIC COAST HWY 77 15TH ST 840 LOMA DR
81 PIER AVE 77 15TH ST 1325 HERMOSA AVE
1560 PACIFIC COAST HWY 2309 PACIFIC COAST HWY 709 PIER AVE 1731 PACIFIC COAST HWY 655 2ND ST 703 PIER AVE
Addresses With Scout Service at Start of Contract
1295
May 24, 2013 City of Hermosa Beach
EXHIBIT 9
DOWNTOWN AREA
1296
May 24, 2013 City of Hermosa Beach
EXHIBIT 10
AREAS WHERE AUTOMATED SERVICE NOT FEASIBLE (CAN SERVICE AREAS)
Between Palm Drive and Manhattan Avenue
Containers placed on 28th Court – Addresses on 27th and 28th Streets Containers placed on 29th Court – Addresses on 28th and 29th Streets Containers placed on 30th Place – Addresses on 29th and 30th Streets Containers placed on 31st Place – Addresses on 30th and 31st Streets Containers placed on 32nd Place – Addresses on 31st and Longfellow Avenue Containers placed on 33rd Place – Addresses on Longfellow and 33rd Streets Containers placed on 34th Place – Addresses on 33rd and 34th Streets Containers placed on Homer Street – Addresses on 34th and 35th Streets Between Manhattan Ave and Valley Drive
Containers placed on 31st Place – Addresses on 30th and 31st Streets Containers placed on 32nd Place – Addresses on 31st Street and Longfellow Avenue Between Manhattan Avenue and Highland Avenue
Containers placed on 34th Place – Addresses on 33rd and 34th Streets Between 22nd Street and 24th Street
Containers placed on Beach Drive – Addresses on Hermosa Drive and The Strand 1297
May 24, 2013 City of Hermosa Beach
EXHIBIT 11
DOWNTOWN COMPACTOR FACILITY SERVICE AREA
1298
May 24, 2013 City of Hermosa Beach
EXHIBIT 12
NOTARY CERTIFICATION
STATE OF CALIFORNIA)
COUNTY OF ) ss:
On _______________ before me, ______________________(name), ______ (title), personally appeared__________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature __________________________________ (Seal)
Notary Public
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1512 Eureka Road, Suite 220, Roseville, CA 95661 | p 916.782.7821 | f 916.782.7824 | www.r3cgi.com April 1, 2022
Mr. Douglas Krauss, Environmental Programs Manager
City of Hermosa Beach
1315 Valley Drive, Hermosa Beach, CA 90254
submitted via email: [email protected]
Subject: Report on Solid Waste Market and Services Analysis Dear Mr. Krauss,
R3 Consulting Group, Inc. (R3) is pleased to submit this report to the City of Hermosa Beach (City) regarding our analysis of the proposal the City received from Athens Services (Athens) to extend its Agreement for Integrated Solid Waste Management Services (Agreement). In conjunction with our analysis of Athens’ proposal, R3 also analyzed Athens’ current and projected revenues and expenses associated with its business operations in the City and compared current and projected solid waste rates to other cities in the South Bay region.
Based on our analysis, we find no reason why the City should not consider negotiating an extension with Athens. The City’s solid waste rates are low compared to others in the region, with the City’s residential rates being the overall lowest in the South Bay. As a likely result of these low rates, Athens’ operations in the City in 2020 and 2021 operated at a loss, with revenues not covering the cost of providing services nor a reasonable profit.
Athens’ proposal to extend the Agreement term, provide SB 1383 organics collection and associated services, and increase rates appears to be reasonable. Even after the proposed rate increases over three to five years, and given modest assumptions about how rates in the rest of the South Bay region will increase over time, the City’s residential rates are likely to remain below the average of other South Bay cities. Moreover, our analysis indicates that Athens’ proposed rate increases would achieve an appropriate level of reasonable operating profit within three to five years while also providing funding for new SB 1383 programs and new payments to the City.
* * * * *
Thank you for this opportunity to support the City. As you proceed to review this report, we are happy to meet with you via Zoom to discuss its contents and consider revisions, after which we will provide a final report. We also remain contracted and available to support the City as needed in next steps that may include review of a revised proposal from Athens, additional or in person meetings, and support in extension negotiations with Athens. Should you have questions regarding this report or need additional information, please don’t hesitate to contact me.
Sincerely,
Garth Schultz | President
R3 Consulting Group, Inc.
510.292.0853 | [email protected]
1307
Mr. Douglas Krauss
City of Hermosa Beach
Report on Solid Waste Market and Services Analysis
April 1, 2022
City of Hermosa Beach | Report on Solid Waste Market and Services Analysis 1 Section 1 | Executive Summary
Athens has proposed three options for extending its Agreement with the City for Integrated Solid Waste Management Services, all of which would include provision of services to aid the City’s compliance with State Law SB 1383, modification of diversion requirements, and a revision to the annual rate increase methodology. The three options vary only with respect to length of extension, amount and schedule for rate increases, and payments to the City. R3 analyzed Athens current rates, recent financial outcomes, and the projected effects of extension and increases to the City’s rates in comparison to other South Bay cities.
The City’s residential solid waste rates are currently the lowest in the region, 20%-41% lower than the average of other South Bay cities. Commercial bundled rates (inclusive of garbage, recycling and organic waste) are 8% to 14% below the regional average. As a likely result of these low rates, Athens reports that its expenses exceed revenues for its operations in the City, meaning that current rates do not cover the cost of providing service, with Athens not earning a profit in its City operations.
If the City were to accept any one of Athens’ three proposed extension options, residential rates over the next five years are projected to remain 13% to 36% below the average of other South Bay cities.
Commercial bundled rates are projected to remain within the normal market expectation for such services, but with comparison to other agencies being difficult to predict due to regulatory changes, and the likelihood that other cities have not yet addressed the requirements of SB 1383. Projections of Athens’ future profit achievement via extension and rate increase indicate that that Athens would not begin to earn a profit via its operations in the City until FY 2024-25 at the earliest, and that the resultant profit margins would be within industry norms.
We find no reason why the City should not proceed to negotiate an extension with Athens. With SB 1383 having taken effect January 1, 2022, the City needs to make immediate arrangements to provide organic waste collection services to all solid waste customers, while also securing other SB 1383 programs and services such as those listed in Athens’ proposal. Moreover, with the current Agreement being set to expire on June 30, 2023, the City needs to make arrangements for ongoing solid waste management services beyond that date. Given that the City’s current rates are very low and are projected to remain comparatively low into the future and given that the City seems to be satisfied with Athens’ services and performance, it makes good sense for the City to consider negotiating an extension to the current Agreement.
If extension negotiations are not successful, the City may still proceed to a competitive procurement process for a new solid waste services agreement. However, to protect its interests, we recommend that the City consider securing an option for triggering an up to one-year extension (through June 30, 2024) with Athens at the outset of negotiations. This would be a security measure that would allow the City sufficient time to conduct a competitive procurement process and transition to a new provider, if necessary, upon the conclusion of negotiations.
Section 2 | Cost of Service Analysis
R3 conducted an analysis of Athens’ current rate and other revenues in relation to the cost of providing current services. The analysis took into consideration Athens’ revenues resulting from current rates charged to City customers and provides a comparison of Athens’ operating costs with revenues from City operations.
The analysis covered calendar years (CY) 2020 and 2021 and is based on information contained in Athens’ Annual Reports for Fiscal Year (FY) 2019-20 and FY 2020-21 as well as Athens’ representations of: total gross revenues; maintenance and street sweeping revenues and expenses (pursuant to a separate contract between the City and Athens); general and administrative (G&A) expenses; contract and franchise fees and payments to the City; and its net income from City operations in both years. 1308
Mr. Douglas Krauss
City of Hermosa Beach
Report on Solid Waste Market and Services Analysis
April 1, 2022
City of Hermosa Beach | Solid Waste Market and Services Analysis 2 Verification of these figures was beyond the scope of R3’s engagement for this analysis, and thus our analysis did not include any verification of figures included in the Annual Reports or Athens’ representation of its financial statements for City operations. As a result, all Athens’ reported figures were assumed to be true and accurate.
Using these sources of information, R3 prepared estimates and a comparison of gross revenues and expenses for CYs 2020 and 2021. Estimated gross revenues were based on totals provided by Athens’, as well as CY annualized residential, commercial and roll-off revenues reported in FY Annual Reports.
Estimated expenses were based on overall net income as reported by Athens, as well as rounded figures for maintenance and street sweeping, G&A, and City fees and payments presented by Athens based on its financial statements for City operations.
According to our analysis, Athens incurred a net loss in CY 2020 and CY 2021. As a result of our analysis, we can conclude that current rate revenues in the City are not sufficient to cover Athens’ cost of operations, and that in CY 2020 and 2021, Athens made no profit on its City operations.
Section 3 | South Bay Market Comparison
R3 conducted an analysis comparing Athens’ rates in the City with other cities in the South Bay region.
This analysis compares current rates for FY 2021-22 to other publicly available rates for comparative cities. Our analysis does not make adjustments for differences in agency fees and payments, contract terms and conditions, services provided to the agencies, or other factors that my otherwise result in differences in rates between agencies.
Table 1 below shows that the City’s current residential rates are lower than all other comparison cities in the South Bay, with the City’s rates being $2.80 to $10.73 less per month than the average (not including the City’s low rates). For the City’s 64-gallon residential rate (to which 58% of residents are subscribed) the rates are 39% less than average.
Table 1: Comparison of Residential FY 2021-22 Rates for South Bay Cities 20-gal 32/35-gal 64-gal 96-gal
Hermosa Beach $ 11.21 $ 12.37 $ 17.04 $ 21.68
Inglewood N/A N/A 17.46 N/A
Manhattan Beach 14.01 14.01 18.83 22.37
Redondo Beach N/A N/A 22.72 N/A
Hawthorne N/A 20.45 23.87 27.71
Lawndale N/A 23.09 27.45 31.80
Rancho Palos Verdes N/A 26.06 33.54 40.99
Torrance N/A N/A 34.10 35.31
Culver City N/A N/A 44.21 N/A
Average without Hermosa Beach 14.01 20.90 27.77 31.64
Hermosa Beach Over (Under) Average (2.80) (8.53) (10.73) (9.96) Percent Over (Under) Average (20%) (41%) (39%) (31%)
Likewise, for commercial bundled services inclusive of garbage, recycling, and organic waste, the City’s rates are also lower than average, and lowest or nearly lowest for the commercial bundled rate services that we analyzed. As shown in Table 2 on the following page, bundled commercial rates are 8% to 15% lower than the average of other South Bay cities, ranging from $12.48 to $33.08 per month cheaper than 1309
Mr. Douglas Krauss
City of Hermosa Beach
Report on Solid Waste Market and Services Analysis
April 1, 2022
City of Hermosa Beach | Solid Waste Market and Services Analysis 3 the average. It should be noted that rates in Torrance and Rancho Palos Verdes are set based on open market and are thus not available for the purposes of this comparison.
Table 2: Comparison of Commercial FY 2021-22 Rates for South Bay Cities 1 CY
1/week
Garbage;
96-gallon
Recycling;
96-gallon
Organics
3 CY 1/week
Garbage; 96-
gallon
Recycling;
96-gallon
Organics
1 CY
1/week
Garbage; 1
CY 1/week
Recycling;
96-gallon
Organics
3 CY
1/week
Garbage; 1
CY 1/week
Recycling;
96-gallon
Organics
Hermosa Beach $139.73 $198.91 $148.35 $207.53
Inglewood N/A 189.72 189.72 N/A
Culver City N/A 204.55 N/A 204.55
Manhattan Beach N/A 219.79 N/A 273.33
Lawndale 148.62 220.40 148.62 220.40
Hawthorne 155.80 235.73 182.20 262.13
Redondo Beach N/A 242.64 N/A 242.64
Average without Hermosa Beach 152.21 218.81 173.51 240.61 Hermosa Beach Over (Under) Average (12.48) (19.90) (25.16) (33.08) Percent Over (Under) Average (8%) (9%) (15%) (14%)
Section 4 | Proposal Analysis
Rate Analysis
With the findings that Athens’ current rates are generally lowest amongst the South Bay cities and are not sufficient to cover the costs of providing services for the City, R3 analyzed Athens’ proposed rates pursuant to the increases included in its extension proposal. That analysis found that, via all three of the proposed extension options, Athens’ residential rates would remain below the average compared to the other South Bay cities.
This analysis assumes that rates in the other cities (with the exception of Redondo Beach, for which Athens has provide known increases) would increase annually by 4% to 5%. These are conservative annual escalators to account for known rate adjustment terms in agreements between those cities and their service providers, as well as modest expectations for the impacts of inflation. It is possible that rates in the other cities will increase more than we have assumed here; however, for the purposes of this analysis, our conservative assumptions still yield positive finding with respect to projected comparison of the City’s rates.
Table 3 on the following page demonstrates the known impact of Athens’ proposed options on 64-gallon residential rates compared to estimated rates for the other South Bay cities for the next five years (and with Redondo Beach rates also being actual per Athens, not estimated). As shown in the table, the City’s rates would remain 12% to 35% below the average over the next five years, depending on the option. 1310
Mr. Douglas Krauss
City of Hermosa Beach
Report on Solid Waste Market and Services Analysis
April 1, 2022
City of Hermosa Beach | Solid Waste Market and Services Analysis 4 Table 3: Projection and Comparison of 64-gallon Residential Rates Over Five Years FY 22-
23 FY 23-
24 FY 24-
25 FY 25-
26 FY 26-
27 Inglewood $18.16 $18.88 $19.64 $20.43 $21.24
Manhattan Beach 19.77 20.76 21.80 22.89 24.03
Hawthorne 24.82 25.82 26.85 27.92 29.04
Hermosa Beach (A/B) 20.15 23.83 28.19 29.17 30.18
Hermosa Beach (C) 19.14 21.50 24.16 27.14 30.51
Redondo Beach 25.48 28.16 29.14 30.16 31.22
Lawndale 28.55 29.69 30.88 32.11 33.40
Rancho Palos Verdes 34.88 36.28 37.73 39.24 40.81
Torrance 35.46 36.88 38.36 39.89 41.49
Culver City 48.63 53.49 54.83 56.20 56.20
Average without Hermosa Beach 29.47 31.25 32.40 33.61 34.68 Hermosa Beach Over (Under) Average (A/B) (9.32) (7.42) (4.21) (4.44) (4.50) Percent Over (Under) Average (32%) (24%) (13%) (13%) (13%) Hermosa Beach Over (Under) Average (C) (10.33) (9.75) (8.25) (6.46) (4.17) Percent Over (Under) Average (35%) (31%) (25%) (19%) (12%) We should note that it is not clear whether other agencies in the South Bay region are fully prepared to meet the requirements of SB 1383 (with the exception of Redondo Beach, which Athens reports is prepared for SB 1383). Given this uncertainty, we have not forecasted increases in rates to account for the impacts of SB 1383, though such impacts may be reflected in comparative rates in the future; if this becomes the case, then the City’s rates will compare even more favorably than shown in Table 3.
Rates for bundled commercial service would also likely follow trends similar to residential rates, though with less overall ability for estimation and projection given the likelihood that commercial rates in other South Bay cities will change in response to SB 1383’s regulatory requirements. As such, we have not prepared a table comparing bundled commercial rates for the coming five years, as we find that such an analysis would be of little benefit and potentially misleading (because commercial rate structures vary from agency to agency and are expected to change significantly in the coming years with the onset of new fully bundled commercial rates). Full details regarding our analysis and comparison and projections of rates in the South Bay are included as Attachment 1 to this report.
Analysis of Proposed Agreement Terms
As previously noted in this report, all three of Athens’s proposed extension options include:
➢ New programs and services to support the City’s compliance with SB 1383, including organic waste collection from all customers as well as provision of route contamination audits, site visits, reporting, and waste characterizations.
➢ Modification of the diversion requirement in the Agreement from an expectation of 50% diversion of collected tonnages to meeting CalRecycle’s requirements pursuant to AB 939. ➢ Modification of the annual rate adjustment formula to “Trash CPI+1%”.
The only differences between the proposals are length of extension term and type and amounts of payments to the City. R3 analyzed the terms of Athens’ proposed terms and conditions, and the three options, with findings presented below.
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Mr. Douglas Krauss
City of Hermosa Beach
Report on Solid Waste Market and Services Analysis
April 1, 2022
City of Hermosa Beach | Solid Waste Market and Services Analysis 5 SB 1383 Programs and Services
With respect to the SB 1383 programs and services being proposed by Athens, we find that the general description and Athens’ projected costs for those programs and services are appropriate given our experience working with other agencies and the general trends in the Los Angeles area solid waste marketplace. However, if the City decides to proceed to negotiate an extension with Athens, greater detail will be needed regarding the specific SB 1383 programs and services to be provided. Additionally, we recommend that these details include implementation of carts and containers that are compliant with the color and labelling requirements of SB 1383. We have provided an example of a contract amendment that contains such details as Attachment 2 to this report.
Modifications to the Diversion Requirement
Regarding Athens’ proposal to modify the diversion requirement to align with the State’s measurement of diversion under AB 939 (which we also understand would include measurement of per capita disposal per SB 1016), we can attest that such changes to the diversion requirements are common in today’s solid waste marketplace. While the current requirement for Athens to divert (meaning recycle or compost) over 50% of the materials it collects is a good objective, the reality given recent trends in recycling (such as China’s National Sword Policy and the resultant changes in acceptable recyclables materials in the marketplace) and packaging (wherein much of the new materials are truly not recyclable) is that even highly developed recycling program may not achieve 50% diversion of collected tonnages.
Agreement terms and conditions that would hold Athens accountable for the City’s compliance with AB 939 and other laws are a reasonable substitute for the current diversion requirement; however, should the City proceed to negotiate an extension with Athens, we suggest that the modification to the diversion requirement include compliance with SB 1383, SB 1016, and other relevant State solid waste laws, in addition to AB 939. Additionally, the City may wish to seek indemnity for compliance with these terms.
Modification to the Annual Rate Adjustment Formula
Athens has proposed to change the annual adjustment formula in the Agreement to “Trash CPI+1%”.
While the specific Trash CPI to be used to meet this proposed has yet to be identified, use of a “Water/Sewer/Trash” (WST) CPI published by the Bureau of Labor Statistics (BLS) is becoming commonplace in solid waste agreements. Such CPIs have historically yielded somewhat higher calculations of annual rate adjustment than a standard CPI or RRI (Refuse Rate Index) such as the one in the City’s current Agreement; however, public agencies that have agreed to the WST CPI have generally recognized that the labor, fuel and capital-intensive nature of solid waste collection operations have often yielded increases in costs that exceed standard CPI.
With the likely effects of economic inflation looming on the horizon, it is not clear whether use of a “Trash CPI” +1% is going to be higher or lower than use of the current annual rate adjustment formula. Given projections of lower-than-average rates over the coming five years, we can conclude that application of a “Trash CPI” +1% will not likely result in City rates that approach or exceed the average rates in the South Bay region. However, there is a likely risk of higher-than-normal rate increases in the coming several years by using a “Trash CPI” +1% because of the prospects of inflation.
Analysis of Options
The three extension options proposed by Athens vary by term length and type and amounts of new payments to the City. Via Option A, the length of the Agreement would be extended by 10-years and would include a one-time payment of $100,000 to the City. This is the overall simplest option available to the City, with the shortest extension term length.
Via Option B, the length of the Agreement would be extended by 10-years plus a 5-year extension subject to being in compliance with the Agreement (effectively a 15-year agreement). This option would transition the length to an annual renewable term if rates are within 10% of industry standard, would include onetime payments (or expenses) of $50,000, and would also include $20,000 in annual payments or new 1312
Mr. Douglas Krauss
City of Hermosa Beach
Report on Solid Waste Market and Services Analysis
April 1, 2022
City of Hermosa Beach | Solid Waste Market and Services Analysis 6 services to the City. This option would yield higher commercial rate increases than Option A (residential rates for the two options are identical) and would also consequently result in a slightly higher projected profit to the company. Importantly, as proposed, this option would commit the City to a future annually renewable term Agreement if rates are within the 10% of industry standard as noted above, leaving no apparent discretion for the City to approve or deny such a change.
Via Option C, the length of the Agreement would be extended by 10-years, and subject to a 10-year rolling annually renewable term thereafter. The City would also receive a one-time payment of $200,000.
The City would have the opportunity to cancel the annually renewable term after the first five years of extension (meaning the minimum term would be 15-years) but would waive its right to 3% of its 10% franchise fee if the option to cancel the renewable term is triggered. This option yields the overall lowest of rate increases in the near term, although residential rates at the end of five years via this option are projected to be higher than the rates that would be realized via Options A or B.
Financial Projections for Proposed Options
Using Athens’ proposed rate increases by option, and Athens’ reported SB 1383 expenses and City payments, R3 prepared estimated projections of future operating revenues and expenses for Athens’ operations in the City through FY 2026-27. Overall, based on our analysis, we conclude that the proposed rate adjustments, SB 1383 expenses, and payments to the City are reasonable within the context of the resultant rates and the resultant likely profit to the company, which we find to be in keeping with industry standard (namely within an 87-92% operating margin of eligible operating expenses). Our analysis found that Option A returned an operating margin of approximately 89% in starting in FY 2024-25, Option B returned 88% (yielding slightly more profit) also in FY 2024-25. Prior to FY 2024-25 for both options, estimated projections show Athens continuing to operate at a net loss for operations in the City. Option C, which has a lower overall increase, returned an operating margin of 92% starting in FY 2026-27, for the lowest overall near-term profit achievement. Via Option C, Athens would continue to operate at a projected loss through FY 2025-26.
Section 5 | Regional Market Trends
R3 has been working in the Los Angeles area and broader California solid waste marketplace for nearly 20 years. In the last three years, we have conducted nine competitive procurements in the southern California marketplace and supported many cities in pursuit of SB 1383 compliance. From that experience, we have developed a keen sense of the trends in solid waste agreements, including best practices in how solid waste agreements have address changes in the industry related to regulatory changes such as SB 1383, the impacts of China’s National Sword Policy, changes in post-collection recycling and organics processing markets, changes in the labor and capital markets, and more. From our recent experiences, we can report that:
➢ Competition for solid waste agreements in the Los Angeles area marketplace is strong. ➢ In general, rate increases related to SB 1383 have been low, and largely result of longer-term extensions (such as those proposed by Athens).
➢ Extensions to agreements are often associated with large financial incentive payments to cities. ➢ Amended agreements typically provide full compliance with SB 1383’s cart color and labelling requirements, outreach and education, contamination monitoring and tracking, and associated reporting.
➢ Rate increases for commercial customers are generally higher than those for residential ratepayers.
➢ Revisions to prior diversion standards are commonplace, moving away from percentage diversion requirements and towards commitments to deliver all recyclable and organic materials to permitted recovery facilities.
➢ Access to organic waste processing facilities is limited and therefore highly competitive. ➢ Annual rate adjustments are trending towards use of CPI or WST with annual caps on rate adjustments.
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20‐gal 32/35‐gal 64‐gal 96‐gal FY 22‐23 FY 23‐24 FY 24‐25 FY 25‐26 FY 26‐27 FY 22‐23 FY 23‐24 FY 24‐25 FY 25‐26 FY 26‐27 Hermosa Beach (Current) 11.21 $ 12.37 $ 17.04 $ 21.68 $ Manhattan Beach 14.71 $ 15.45 $ 16.22 $ 17.03 $ 17.88 $ Inglewood 18.16 $ 18.88 $ 19.64 $ 20.43 $ 21.24 $ Manhattan Beach 14.01 $ 14.01 $ 18.83 $ 22.37 $ Hermosa Beach (A/B) 14.62 $ 17.30 $ 20.46 $ 21.17 $ 21.91 $ Manhattan Beach 19.77 $ 20.76 $ 21.80 $ 22.89 $ 24.03 $ Redondo Beach N/A N/A 22.72 $ N/A Hermosa Beach (C) 13.89 $ 15.61 $ 17.54 $ 19.71 $ 22.15 $ Hawthorne 24.82 $ 25.82 $ 26.85 $ 27.92 $ 29.04 $ Hawthorne N/A 20.45 $ 23.87 $ 27.71 $ Hawthorne 21.27 $ 22.12 $ 23.00 $ 23.92 $ 24.88 $ Hermosa Beach (A/B) 20.15 $ 23.83 $ 28.19 $ 29.17 $ 30.18 $ Torrance N/A N/A 34.10 $ 35.31 $ Lawndale 24.01 $ 24.97 $ 25.97 $ 27.01 $ 28.09 $ Hermosa Beach (C) 19.14 $ 21.50 $ 24.16 $ 27.14 $ 30.51 $ Lawndale N/A 23.09 $ 27.45 $ 31.80 $ Rancho Palos Verdes 27.10 $ 28.19 $ 29.31 $ 30.49 $ 31.71 $ Redondo Beach 25.48 $ 28.16 $ 29.14 $ 30.16 $ 31.22 $ Culver City N/A N/A 44.21 $ N/A Lawndale 28.55 $ 29.69 $ 30.88 $ 32.11 $ 33.40 $ Inglewood N/A N/A 17.46 $ N/A Average without Hermosa Beach 21.77 $ 22.6 $ 23.63 8 $ 24.61 $ 25.6 $ 4 Rancho Palos Verdes 34.88 $ 36.28 $ 37.73 $ 39.24 $ 40.81 $ Rancho Palos Verdes N/A 26.06 $ 33.54 $ 40.99 $ Torrance 35.46 $ 36.88 $ 38.36 $ 39.89 $ 41.49 $ Hermosa Beach Over (Under) Average (A/B) $ (5.38) (7.15) $ (3.16) $ (3.44) $ (3.73) $ Culver City 48.63 $ 53.49 $ 54.83 $ 56.20 $ 56.20 $ All City Average 12.61 $ 19.20 $ 26.58 $ 29.98 $ ‐33% ‐24% ‐13% ‐14% ‐15%Average without Hermosa Beach 14.01 $ 20.9 $ 27.77 0 $ 31.6 $ 4 Average without Hermosa Beach 29.47 $ 31.25 $ 32.4 $ 33.61 0 $ 34.6 $ 8 Hermosa Beach Over (Under) Average (C) (7.88) $ (7.07) $ (6.09) $ (4.91) $ (3.49) $ Hermosa Beach Over (Under) Average (2.80) $ (8.53) $ (10.73) $ (9.96) $ ‐36% ‐31% ‐26% ‐20% ‐14% Hermosa Beach Over (Under) Average (A/B) (9.32) $ (7.42) $ (4.21) $ (4.44) $ (4.50) $ ‐20% ‐41% ‐39% ‐31% ‐32% ‐24% ‐13% ‐13% ‐13%
Hermosa Beach (A) 13.25 $ 14.62 $ 20.15 $ 25.69 $ Hermosa Beach Over (Under) Average (C) $ (9.75) (10.33) $ (8.25) $ (6.46) $ (4.17) $ Over (Under) Average (0.76) $ (6.28) $ (7.63) $ (5.95) $ ‐35% ‐31% ‐25% ‐19% ‐12% ‐5% ‐30% ‐27% ‐19%
Hermosa Beach (B) 13.25 $ 14.62 $ 20.15 $ 25.69 $ $ (6.28) (0.76) $ (7.63) $ (5.95) $
‐5% ‐30% ‐27% ‐19%
Hermosa Beach (C) 12.59 $ 13.89 $ 19.1 $ 24.39 4 $ $ (7.01) (1.42) $ (8.63) $ (7.25) $
‐10% ‐34% ‐31% ‐23%
20‐gal 32/35‐gal 64‐gal 96‐gal
Percentage Subscribers in Hermosa Beach 1% 34% 58% 8%
FY 2021‐22 Rates 5‐Year Rate Projections ‐ 32/35‐Gal 5‐Year Rate Projections ‐ 64‐Gal 1314
This is a comparison to show the full monthly cost to commercial accounts that are subscribed to all three commodities Hermosa Beach 139.73 $ 198.91 $ 148.35 $ 207.53 $ Manhattan Beach $ 273.33 219.79 $ Redondo Beach $ 242.64 242.64 $ Hawthorne 155.80 $ 235.73 $ 182.20 $ 262.13 $ Torrance Open Market Open Market Open Market Open MarketLawndale 148.62 $ 220.40 $ 148.62 $ 220.40 $ Culver City $ 204.55 204.55 $ Inglewood $ 189.72 189.72 $ Rancho Palos Verdes Open Market Open Market Open Market Open MarketAverage without Hermosa Beach 152.21 $ 218.81 $ 173.51 $ 240.61 $ Hermosa Beach 139.73 $ 198.91 $ 148.35 $ 207.53 $ Hermosa Beach Over (Under) Average (12.48) $ (19.90) $ (25.16) $ (33.08) $ ‐8% ‐9% ‐15% ‐14%
Please note that many of the jurisdictions did not have information on the organics rates available and t hey are therefore not included in jurisdictions where they could not be located Jurisdiction 1 CY 1/week Garbage; 96 gallon
Recycling; 96 gallon Organics
3 CY 1/week Garbage; 96 gallon
Recycling; 96 gallon Organics
1 CY 1/week Garbage; 1 CY 1/week
Recycling; 96 gallon Organics
3 CY 1/week Garbage; 1 CY
1/week Recycling; 96 gallon
1315
Residential Rate Projections Estimated CPI 4.0% Includes modest estimates for inflation 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 Notes
48 Hermosa Beach (Option A) $11.21 $13.25 $15.67 $18.54 $19.19 $19.85 Hermosa Beach (Option B) $11.21 $13.25 $15.67 $18.54 $19.19 $19.85Hermosa Beach (Option C) $11.21 $12.59 $14.14 $15.89 $17.86 $20.07Manhattan Beach $14.01 $14.71 $15.45 $16.22 $17.03 $17.88 5% capRedondo Beach N/A N/A N/A N/A N/A N/AHawthorne N/A N/A N/A N/A N/A N/A CPITorrance N/A N/A N/A N/A N/A N/A CPILawndale N/A N/A N/A N/A N/A N/A CPICulver City N/A N/A N/A N/A N/A N/A Planned IncreaseInglewood N/A N/A N/A N/A N/A N/A CPIRancho Palos Verdes N/A N/A N/A N/A N/A N/A CPI 1646 Hermosa Beach (Option A) $12.37 $14.62 $17.30 $20.46 $21.17 $21.91 Hermosa Beach (Option B) $12.37 $14.62 $17.30 $20.46 $21.17 $21.91Hermosa Beach (Option C) $12.37 $13.89 $15.61 $17.54 $19.71 $22.15Manhattan Beach $14.01 $14.71 $15.45 $16.22 $17.03 $17.88 5% capRedondo Beach N/A N/A N/A N/A N/A N/AHawthorne $20.45 $21.27 $22.12 $23.00 $23.92 $24.88 CPITorrance N/A N/A N/A N/A N/A N/A CPILawndale $23.09 $24.01 $24.97 $25.97 $27.01 $28.09 CPICulver City N/A N/A N/A N/A N/A N/A Planned IncreaseInglewood N/A N/A N/A N/A N/A N/A CPIRancho Palos Verdes $26.06 $27.10 $28.19 $29.31 $30.49 $31.71 CPI 2713 Hermosa Beach (Option A) $17.04 $20.15 $23.83 $28.19 $29.17 $30.18 Hermosa Beach (Option B) $17.04 $20.15 $23.83 $28.19 $29.17 $30.18Hermosa Beach (Option C) $17.04 $19.14 $21.50 $24.16 $27.14 $30.51Manhattan Beach $18.83 $19.77 $20.76 $21.80 $22.89 $24.03 5% capRedondo Beach (Option A) $22.72 $25.48 $28.16 $29.14 $30.16 $31.22Redondo Beach (Option B) $22.72 $25.48 $28.16 $29.14 $30.16 $31.22Redondo Beach (Option C) $22.72 $25.48 $28.16 $29.14 $30.16 $31.22Hawthorne $23.87 $24.82 $25.82 $26.85 $27.92 $29.04 CPITorrance $34.10 $35.46 $36.88 $38.36 $39.89 $41.49 CPILawndale $27.45 $28.55 $29.69 $30.88 $32.11 $33.40 CPICulver City $44.21 $48.63 $53.49 $54.83 $56.20 $56.20 Planned IncreaseInglewood $17.46 $18.16 $18.88 $19.64 $20.43 $21.24 CPIRancho Palos Verdes $33.54 $34.88 $36.28 $37.73 $39.24 $40.81 CPI 319 Hermosa Beach (Option A) $21.68 $25.69 $30.44 $36.08 $37.52 $39.02 Hermosa Beach (Option B) $21.68 $25.69 $30.44 $36.08 $37.52 $39.02Hermosa Beach (Option C) $21.68 $24.39 $27.44 $30.87 $34.73 $39.07Manhattan Beach $22.37 $23.49 $24.66 $25.90 $27.19 $28.55 5% capRedondo Beach N/A N/A N/A N/A N/A N/A CPIHawthorne $27.71 $28.82 $29.97 $31.17 $32.42 $33.71 CPITorrance $35.31 $36.72 $38.19 $39.72 $41.31 $42.96 CPILawndale $31.80 $33.07 $34.39 $35.77 $37.20 $38.69 CPICulver City N/A N/A N/A N/A N/A N/A Planned IncreaseInglewood N/A N/A N/A N/A N/A N/A CPIRancho Palos Verdes $40.99 $42.63 $44.33 $46.11 $47.95 $49.87 CPI 20 Gallon35 Gallon64 Gallon96 Gallon
1316
2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 Notes 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 Notes 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 Notes Hermosa Beach (Option A) $75.03 $91.41 $111.36 $135.67 $140.42 $145.34 Hermosa Beach (Option A) $37.24 $45.37 $55.27 $67.34 $69.70 $72.14 CPI Hermosa Beach (Option A) CPI Hermosa Beach (Option B) $75.03 $92.04 $112.90 $138.50 $143.35 $148.36 Hermosa Beach (Option B) $37.24 $45.68 $56.04 $68.74 $71.15 $73.64 Hermosa Beach (Option B) Hermosa Beach (Option C) $75.03 $84.78 $95.81 $108.26 $122.33 $138.24 Hermosa Beach (Option C) $37.24 $42.08 $47.55 $53.73 $60.72 $68.61 Hermosa Beach (Option C)Manhattan Beach $75.14 $78.90 $82.84 $86.98 $91.33 $95.90 5% cap Manhattan Beach $37.57 $39.45 $41.42 $43.49 $45.67 $47.95 5% cap Manhattan Beach 5% cap Redondo Beach (Option A) $96.91 $118.07 $143.84 $175.24 $181.37 $187.72 Redondo Beach (Option A) CPI Redondo Beach (Option A) $39.69 $48.35 $58.91 $71.77 $74.28 $76.88 CPI Redondo Beach (Option B) $96.91 $118.88 $145.83 $178.89 $185.15 $191.63 Redondo Beach (Option B) Redondo Beach (Option B) $39.69 $48.69 $59.73 $73.26 $75.83 $78.48 Redondo Beach (Option C) $96.91 $109.51 $123.74 $139.83 $158.01 $178.55 Redondo Beach (Option C) Redondo Beach (Option C) $39.69 $44.85 $50.68 $57.27 $64.71 $73.13Hawthorne $45.73 $47.33 $48.99 $50.70 $52.48 $54.31 CPI Hawthorne $25.15 $26.03 $26.94 $27.88 $28.86 $29.87 CPI Hawthorne $48.98 $50.69 $52.47 $54.31 $56.21 $58.17 CPITorrance Open Market Torrance Open Market TorranceLawndale $101.06 $104.60 $108.26 $112.05 $115.97 $120.03 CPI Lawndale CPI Lawndale CPICulver City $36.87 $40.56 $44.61 $45.73 $46.87 $46.87 Planned Increase Culver City $17.70 $19.47 $21.42 $21.95 $22.50 $22.50 Planned Increase Culver City Planned IncreaseInglewood CPI Inglewood CPI Inglewood CPI Rancho Palos Verdes Open Market CPI Rancho Palos Verdes Open Market CPI Rancho Palos Verdes CPI Hermosa Beach (Option A) $102.49 $124.86 $152.12 $185.33 $191.82 $198.53 Hermosa Beach (Option A) $45.86 $55.87 $68.07 $82.93 $85.83 $88.83 CPI Hermosa Beach (Option A) CPIHermosa Beach (Option B) $102.49 $125.72 $154.23 $189.19 $195.81 $202.66 Hermosa Beach (Option B) $45.86 $56.26 $69.01 $84.65 $87.62 $90.68 Hermosa Beach (Option B)Hermosa Beach (Option C) $102.49 $115.81 $130.87 $147.88 $167.11 $188.83 Hermosa Beach (Option C) $45.86 $51.82 $58.56 $66.17 $74.77 $84.49 Hermosa Beach (Option C)Manhattan Beach Not Offered 5% cap Manhattan Beach Not Offered 5% cap Manhattan Beach 5% capRedondo Beach (Option A) $124.12 $151.22 $184.23 $224.44 $232.30 $240.43 Redondo Beach (Option A) CPI Redondo Beach (Option A) CPIRedondo Beach (Option B) $124.12 $152.26 $186.77 $229.12 $237.14 $245.44 Redondo Beach (Option B) Redondo Beach (Option B)Redondo Beach (Option C) $124.12 $140.26 $158.49 $179.09 $202.37 $228.68 Redondo Beach (Option C) Redondo Beach (Option C)Hawthorne $81.67 $84.53 $87.49 $90.55 $93.72 $97.00 CPI Hawthorne $51.55 $53.35 $55.22 $57.15 $59.15 $61.23 CPI Hawthorne $81.67 $84.53 $87.49 $90.55 $93.72 $97.00 CPITorrance Open Market Torrance Open Market TorranceLawndale $148.62 $153.82 $159.21 $164.78 $170.54 $176.51 CPI Lawndale CPI Lawndale CPICulver City Not Offered Planned Increase Culver City Not Offered Planned Increase Culver City Planned IncreaseInglewood CPI Inglewood CPI Inglewood CPI Rancho Palos Verdes Open Market CPI Rancho Palos Verdes Open Market CPI Rancho Palos Verdes CPIHermosa Beach (Option A) $207.60 $252.92 $308.13 $375.40 $388.54 $402.13 Hermosa Beach (Option A) $92.44 $112.62 $137.20 $167.16 $173.01 $179.06 CPI Hermosa Beach (Option A) CPI Hermosa Beach (Option B) $207.60 $254.66 $312.40 $383.21 $396.63 $410.51 Hermosa Beach (Option B) $92.44 $113.40 $139.10 $170.64 $176.61 $182.79 Hermosa Beach (Option B)Hermosa Beach (Option C) $207.60 $234.59 $265.08 $299.55 $338.49 $382.49 Hermosa Beach (Option C) $92.44 $104.46 $118.04 $133.38 $150.72 $170.31 Hermosa Beach (Option C) Manhattan Beach Not Offered 5% cap Manhattan Beach Not Offered 5% cap Manhattan Beach 5% cap Redondo Beach (Option A) $360.12 $438.73 $534.51 $651.19 $673.99 $697.57 Redondo Beach (Option A) CPI Redondo Beach (Option A) CPI Redondo Beach (Option B) $360.12 $441.76 $541.91 $664.76 $688.02 $712.10 Redondo Beach (Option B) Redondo Beach (Option B)Redondo Beach (Option C) $360.12 $406.94 $459.84 $519.62 $587.17 $663.50 Redondo Beach (Option C) Redondo Beach (Option C)Hawthorne $241.45 $249.90 $258.65 $267.70 $277.07 $286.77 CPI Hawthorne $152.73 $158.08 $163.61 $169.33 $175.26 $181.40 CPI Hawthorne $241.45 $249.90 $258.65 $267.70 $277.07 $286.77 CPI Torrance Open Market Torrance Open Market Torrance
Lawndale $387.90 $401.48 $415.53 $430.07 $445.12 $460.70 CPI Lawndale Included in garbage charge CPI Lawndale CPICulver City Not Offered Planned Increase Culver City Not Offered Planned Increase Culver City Planned IncreaseInglewood CPI Inglewood CPI Inglewood CPI Rancho Palos Verdes Open Market CPI Rancho Palos Verdes Open Market CPI Rancho Palos Verdes CPIHermosa Beach (Option A) $161.67 $196.26 $238.40 $289.74 $299.77 $310.14 CPI Hermosa Beach (Option A) $71.66 $87.30 $106.36 $129.58 $134.12 $138.81 CPI Hermosa Beach (Option A) CPIHermosa Beach (Option B) $161.67 $197.58 $241.63 $295.66 $305.89 $316.49 Hermosa Beach (Option B) $71.66 $87.91 $107.83 $132.28 $136.91 $141.70 Hermosa Beach (Option B)Hermosa Beach (Option C) $161.67 $182.50 $206.07 $232.75 $262.92 $297.07 Hermosa Beach (Option C) $71.66 $80.98 $91.50 $103.40 $116.84 $132.03 Hermosa Beach (Option C) Manhattan Beach $182.22 $188.60 $195.20 $202.03 $209.10 $216.42 5% cap Manhattan Beach $91.11 $94.30 $97.60 $101.02 $104.55 $108.21 5% cap Manhattan Beach 5% cap Redondo Beach (Option A) $208.26 $250.74 $294.62 $304.93 $315.60 $326.65 CPI Redondo Beach (Option A) CPI Redondo Beach (Option A) CPIRedondo Beach (Option B) $208.26 $250.74 $294.62 $304.93 $315.60 $326.65 Redondo Beach (Option B) Redondo Beach (Option B) Redondo Beach (Option C) $208.26 $250.74 $294.62 $304.93 $315.60 $326.65 Redondo Beach (Option C) Redondo Beach (Option C) Hawthorne $161.60 $167.26 $173.11 $179.17 $185.44 $191.93 CPI Hawthorne $102.16 $105.74 $109.44 $113.27 $117.23 $121.33 CPI Hawthorne $161.60 $167.26 $173.11 $179.17 $185.44 $191.93 CPI Torrance Open Market Torrance Open Market Torrance
Lawndale $220.40 $228.11 $236.10 $244.36 $252.91 $261.77 CPI Lawndale Included in garbage charge CPI Lawndale CPICulver City $204.55 $225.01 $247.51 $253.69 $260.04 $260.04 Planned Increase Culver City $43.21 $47.53 $52.28 $53.59 $54.93 $54.93 Planned Increase Culver City $102.98 $113.28 $124.61 $127.72 $130.92 $130.92 Planned IncreaseInglewood $189.72 $196.36 $203.23 $210.35 $217.71 $225.33 CPI Inglewood CPI Inglewood CPIRancho Palos Verdes Open Market CPI Rancho Palos Verdes Open Market CPI Rancho Palos Verdes CPIHermosa Beach (Option A) $337.69 $411.41 $501.22 $610.63 $632.01 $654.13 CPI Hermosa Beach (Option A) $148.33 $180.71 $220.16 $268.22 $277.61 $287.32 CPI Hermosa Beach (Option A) CPIHermosa Beach (Option B) $337.69 $414.24 $508.15 $623.35 $645.17 $667.75 Hermosa Beach (Option B) $148.33 $181.96 $223.21 $273.81 $283.39 $293.31 Hermosa Beach (Option B)Hermosa Beach (Option C) $337.69 $381.59 $431.20 $487.25 $550.59 $622.17 Hermosa Beach (Option C) $148.33 $167.61 $189.40 $214.02 $241.85 $273.29 Hermosa Beach (Option C)Manhattan Beach $374.99 $388.11 $401.70 $415.76 $430.31 $445.37 5% cap Manhattan Beach $187.50 $194.06 $200.85 $207.88 $215.16 $222.69 5% cap Manhattan Beach 5% cap Redondo Beach (Option A) $488.77 $595.47 $725.46 $883.83 $914.76 $946.78 CPI Redondo Beach (Option A) CPI Redondo Beach (Option A) CPIRedondo Beach (Option B) $488.77 $599.57 $735.50 $902.23 $933.81 $966.50 Redondo Beach (Option B) Redondo Beach (Option B)Redondo Beach (Option C) $488.77 $552.31 $624.11 $705.24 $796.93 $900.53 Redondo Beach (Option C) Redondo Beach (Option C)Hawthorne $481.32 $498.17 $515.60 $533.65 $552.33 $571.66 CPI Hawthorne $304.53 $315.19 $326.22 $337.64 $349.46 $361.69 CPI Hawthorne $481.32 $498.17 $515.60 $533.65 $552.33 $571.66 CPITorrance Open Market Torrance Open Market TorranceLawndale $575.23 $595.36 $616.20 $637.77 $660.09 $683.19 CPI Lawndale Included in garbage charge CPI Lawndale CPICulver City Not Offered Planned Increase Culver City Not Offered Planned Increase Culver City Planned IncreaseInglewood CPI Inglewood CPI Inglewood CPI Rancho Palos Verdes Open Market CPI Rancho Palos Verdes Open Market CPI Rancho Palos Verdes CPI Hermosa Beach (C) $75.03 $84.78 $95.81 $108.26 $122.33 $138.24 Hermosa Beach (C) $37.24 $42.08 $47.55 $53.73 $60.72 $68.61 Hermosa Beach (C) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Average without Hermosa Beach $71.14 $76.18 $81.69 $87.06 $92.93 $99.13 Average without Hermosa Bea $26.81 $28.32 $29.93 $31.11 $32.34 $33.44 Average without Hermosa Bea $44.34 $47.77 $51.57 $55.79 $60.46 $65.65 Hermosa Beach Over (Under) Average $3.89 $8.61 $14.12 $21.20 $29.40 $39.11 Hermosa Beach Over (Under) $10.43 $13.76 $17.62 $22.62 $28.38 $35.17 Hermosa Beach Over (Under) ‐$44.34 ‐$47.77 ‐$51.57 ‐$55.79 ‐$60.46 ‐$65.65 5% 11% 17% 24% 32% 39% 39% 49% 59% 73% 88% 105% ‐100% ‐100% ‐100% ‐100% ‐100% ‐100% Hermosa Beach (C) $102.49 $115.81 $130.87 $147.88 $167.11 $188.83 Hermosa Beach (C) $45.86 $51.82 $58.56 $66.17 $74.77 $84.49 Hermosa Beach (C) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Average without Hermosa Beach $118.14 $126.20 $135.06 $144.81 $155.55 $167.40 Average without Hermosa Bea $51.55 $53.35 $55.22 $57.15 $59.15 $61.23 Average without Hermosa Bea $81.67 $84.53 $87.49 $90.55 $93.72 $97.00 Hermosa Beach Over (Under) Average ‐$15.65 ‐$10.39 ‐$4.19 $3.08 $11.56 $21.43 Hermosa Beach Over (Under) ‐$5.69 ‐$1.53 $3.34 $9.02 $15.62 $23.27 Hermosa Beach Over (Under) ‐$81.67 ‐$84.53 ‐$87.49 ‐$90.55 ‐$93.72 ‐$97.00 ‐13% ‐8% ‐3% 2% 7% 13% ‐11% ‐3% 6% 16% 26% 38% ‐100% ‐100% ‐100% ‐100% ‐100% ‐100% Hermosa Beach (C) $207.60 $234.59 $265.08 $299.55 $338.49 $382.49 Hermosa Beach (C) $92.44 $104.46 $118.04 $133.38 $150.72 $170.31 Hermosa Beach (C) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Average without Hermosa Beach $329.82 $352.77 $378.00 $405.80 $436.45 $470.32 Average without Hermosa Bea $152.73 $158.08 $163.61 $169.33 $175.26 $181.40 Average without Hermosa Bea $241.45 $249.90 $258.65 $267.70 $277.07 $286.77 Hermosa Beach Over (Under) Average ‐$122.22 ‐$118.18 ‐$112.92 ‐$106.25 ‐$97.97 ‐$87.83 Hermosa Beach Over (Under) ‐$60.29 ‐$53.62 ‐$45.57 ‐$35.95 ‐$24.54 ‐$11.08 Hermosa Beach Over (Under) ‐$241.45 ‐$249.90 ‐$258.65 ‐$267.70 ‐$277.07 ‐$286.77 ‐37% ‐34% ‐30% ‐26% ‐22% ‐19% ‐39% ‐34% ‐28% ‐21% ‐14% ‐6% ‐100% ‐100% ‐100% ‐100% ‐100% ‐100% Hermosa Beach (C) $161.67 $182.50 $206.07 $232.75 $262.92 $297.07 Hermosa Beach (C) $71.66 $80.98 $91.50 $103.40 $116.84 $132.03 Hermosa Beach (C) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Average without Hermosa Beach $194.46 $209.35 $224.96 $232.42 $240.13 $247.02 Average without Hermosa Bea $78.83 $82.52 $86.44 $89.29 $92.24 $94.82 Average without Hermosa Bea $132.29 $140.27 $148.86 $153.44 $158.18 $161.43 Hermosa Beach Over (Under) Average ‐$32.79 ‐$26.84 ‐$18.89 $0.32 $22.79 $50.05 Hermosa Beach Over (Under) ‐$7.17 ‐$1.55 $5.06 $14.11 $24.60 $37.20 Hermosa Beach Over (Under) ‐$132.29 ‐$140.27 ‐$148.86 ‐$153.44 ‐$158.18 ‐$161.43 ‐17% ‐13% ‐8% 0% 9% 20% ‐9% ‐2% 6% 16% 27% 39% ‐100% ‐100% ‐100% ‐100% ‐100% ‐100% Hermosa Beach (C) $337.69 $381.59 $431.20 $487.25 $550.59 $622.17 Hermosa Beach (C) $148.33 $167.61 $189.40 $214.02 $241.85 $273.29 Hermosa Beach (C) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Average without Hermosa Beach $480.08 $508.49 $539.40 $573.10 $609.91 $650.19 Average without Hermosa Bea $246.02 $254.63 $263.54 $272.76 $282.31 $292.19 Average without Hermosa Bea $481.32 $498.17 $515.60 $533.65 $552.33 $571.66 Hermosa Beach Over (Under) Average ‐$142.39 ‐$126.90 ‐$108.21 ‐$85.85 ‐$59.32 ‐$28.01 Hermosa Beach Over (Under) ‐$97.69 ‐$87.01 ‐$74.13 ‐$58.74 ‐$40.46 ‐$18.90 Hermosa Beach Over (Under) ‐$481.32 ‐$498.17 ‐$515.60 ‐$533.65 ‐$552.33 ‐$571.66 ‐30% ‐25% ‐20% ‐15% ‐10% ‐4% ‐40% ‐34% ‐28% ‐22% ‐14% ‐6% ‐100% ‐100% ‐100% ‐100% ‐100% ‐100% Cart
1 CY 1/Week1 CY 3/Week3 CY 1/Week3 CY 3/Week
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1 CY 1/Week1 CY 3/Week3 CY 1/Week3 CY 3/Week
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1 CY 1/Week1 CY 3/Week3 CY 1/Week3 CY 3/Week
3 CY
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3 CY
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3 CY
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Included in garbage charge
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Open Market
Included in garbage charge
Not Offered
Open Market
3 CY
1/Week
3 CY
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3 CY
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Included in garbage charge
Not OfferedNot Offered
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Included in garbage charge
Open Market
1 CY
3/Week
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Not OfferedNot Offered
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Not Offered
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1 CY
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1 CY
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Included in garbage charge
Not OfferedNot Offered
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Included in garbage charge
Not Offered
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Commercial Organics Rate Projections
Cart Cart Cart
Included in garbage charge
Food Waste Carts offered at no charge
Open Market
Included in garbage charge
Open Market
Commercial Garbage Rate Projections Commercial Recycling Rate Projections 1317
AMENDMENT TO THE REVISED AND RESTATED EXCLUSIVE FRANCHISE
AGREEMENT TO COLLECT, TRANSFER, PROCESS, MARKET, AND DISPOSE OF SOLID
WASTE, RECYCLABLE AND COMPOSTABLE MATERIALS BETWEEN MARIN SANITARY
SERVICE AND THE COUNTY OF MARIN