HomeMy WebLinkAboutPW16-030 - Amendment - #1 - Republic Services - Garbage, Recycling, Yard & Food Waste Collection & Disposal/Marketing - 09/01/2019 Agreement Routing Form
KEN T For Approvals,Signatures and Records Management
W IAS HINGTON
This form combines&replaces the Request for Mayor's Signature and Contract Cover Sheet forms.
(Print on pink or cherry colored paper)
Originator: Tony Donati Department: Public Works
Date Sent: 10/25/19 Date Required: 11/1/19
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> Authorized Director or Designee Date of
® 9/3/19
a. to Sign: ❑ Council
ccMayor Approval:
Budget N/A Grant? ❑ Yes No
Account
Number: Type: N/A
Vendor or
Name: Republic Services of Kent Cate 9 y: Contract
= Vendor Sub-Category Amendment
O Number:
toProject Garbage, Recycling, Yard & Food Waste Collection & Disposal/Marketing
L Name:
O
c Project Improve the quality of recyclables and compostable material collected.
Details:
EAgreement 0 Basis for
0 Amount: Selection of
y Contractor:
o+ — -
a Start Date: September 1, 2019 Termination Date: 3/31/2029
Notice required prior to Yes No Contract Number: p .-
disclosure?
Dat byry e Comments:
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KENT" LAW DEPT
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p, Date Routed to the Mayor's Office:
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Date Routed to the City Clerk's Office:
City of Kent
Date Sent to Originator: Office of the Mayor
Visit Documents.KentWA.gov to obtain copies of all agreements
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AMENDMENT#1
TO GARBAGE, RECYCLING, YARD& FOOD WASTE COLLECTION
AND DISPOSAL/MARKETING CONTRACT
between the CITY OF KENT and
KENT-MERIDIAN DISPOSAL COMPANY D/B/A REPUBLIC SERVICES OF KENT
This AMENDMENT #1 is made and entered into this _ day of September 20I9 by and
between the City of Kent, a municipal corporation of the State of Washington ("City"), and Kent-
Meridian Disposal Company,a Washington joint venture,whose joint venture partners are Fiorito
Enterprises, Inc., a Washington corporation, and Rabanco Companies, a Washington general
partnership (whose general partners are Rabanco, Ltd., a Washington corporation doing business
as Republic Services of Kent, and Rabanco Recycling, Inc., a Washington corporation),
("Contractor").
RECITALS
WHEREAS, the City and Contractor entered into a Garbage, Recycling, Yard & Food Waste
Collection and Disposal/Marketing Contract ("Contract") with an effective date of April 1. 2016:
and
WHEREAS, the parties wish to amend certain terms and conditions of the Contract to improve the
quality of Recyclables and compostable material collected in the City and to accommodate adverse
changes in recyclable commodities markets; and
WHEREAS, the parties desire that the changes provided through this Amendment #1 will apply
beginning September 1, 2019, and they wish to ratify all acts consistent with this Amendment #1
and prior to its execution.
AMENDMENT
NOW, THEREFORE, the City and Contractor agree as follows:
Section 1. Compensation — New Sustainability Adjustment. Section II.3.3 of the Contract,
entitled "Compensation Adjustments," is amended to add a new sustainability adjustment at
Subsection 3.3.4 and to renumber the Contract's existing subsection 3.3.4 to a new subsection
3.3.5 as follows:
3.3 Compensation Adjustments
3.3.4 Sustainability Adjustment
AMENDMENT#I —Page I of 7
to Garbage, Recycling,Yard& Food Waste
Collection and Disposal/Marketing Contract
To fund the increased costs of the recycling program, including increased costs associated
with the processing and marketing of Recyclables and compostable material, as well as
additional education and contamination enforcement costs, a sustainability adjustment
("Adjustment") shall be added to each rate charged by the Contractor for recurring (i.e.
monthly or weekly) service. The Adjustment shall take effect on September 1, 2019, and
terminate on March 31,2029.The Adjustment shall initially be$0.96 per month for single-
family residential customers and $2.98 per cubic yard of monthly garbage service for
Multifamily Complex Customers and cart-based Commercial Customers.. The Adjustment
shall be subject to the senior low-income and disabled resident discount for qualifying
single-family residential customers.
The Adjustment shall be re-evaluated, and potentially modified, on an annual basis. By
February 14,2020,and every year thereafter until the Contract expires or is terminated,the
Contractor shall submit a report with the following information from the previous period:
1. number of current residential, multifamily, and cart-based Commercial
Customers;
2. tonnage of recycling produced by residential and multifamily Customers;
3. monthly garbage service levels for multifamily and cart-based Commercial
Customers(expressed in cubic yards);
4. Commodity Revenue(expressed in dollars per ton),
5. Commodity Sampling for residential and multifamily recycling(expressed as a
percentage of all commodities collected);
6. comparison of Commodity Revenue and Commodity Sampling to those of the
previous period; and
7. recalculation of the Adjustment.
Adjustments shall be based on changes in commodity value. Changes in Processing Costs
may be considered when reevaluating the Adjustment. The City shall either approve the
recalculated Adjustment or modify it if the City reasonably believes that the proposed
Adjustment exceeds the amount necessary to cover losses from Commodity Revenue.
Implementing the modified Adjustment will require City Council approval if the
recalculated Adjustment is greater than or equal to 5% of the original Adjustment taking
effect on September 1, 2019. The City shall not be required to increase the Adjustment if
it exceeds the amount in effect on September 1, 2019. If commodity revenue exceeds that
of the baseline established in June 2019, Customers subject to the Adjustment will receive
a rebate instead of paying the Adjustment.
The following table outlines the evaluation periods and deadlines applying to any
modifications to the Adjustment.
AMENDMENT#1 —Page 2 of 7
to Garbage,Recycling,Yard& Food Waste
Collection and Disposal/Marketing Contract
Adjustment Report to City Notify Modified
Evaluation Period City, By Decision Customers Adjustment
July 1,2019—January 31,2020 By By Effective Date
Februaa 1, 2020—January 31, 2021
February 11 2021 —January 31,2022
Febru 1, 2022—January 31,2023
February 1, 2023 —January 31, 2024 February
February1, 2024—January 31, 2025 February 7 24* March 1 April I
February 1, 2025 —January 31,2026
February 1, 2026—January 31, 2027
February 1, 2027—January 31, 2028
February 1, 2028—January 31, 2029
* If the recalculated Adjustment is greater than or equal to 5%of the original Adjustment,the City
may take longer to decide on, notify Customers about, and implement the Adjustment, as
approving it will require City Council approval.
The following definitions shall apply to this subsection 3.3.4:
• "Commodity Revenue" means the average revenue, per ton of inbound material, from the
sale of commodities produced at the materials recovery facility ("MRF").
• "Commodity Sampling" means a proportionate breakdown of each marketed commodity
per ton of processed Recyclables.
• "Processing Costs" means the average cost, per ton of inbound material, of operating the
MRF that receives the City's Recyclables, including but not limited to the cost of residue
disposal.
• "Residue"means the material separated during the processing of Recyclables that has no
market value.
3.3.54 Other Modifications
Except for the adjustments exl2ressiy authorized in Section 3 3 Tthe Contractor shall not adjust
or modify rates due to employee wage increases, the value of Recyclables, Garbage collection
service level shifts, or other changes affecting the collection system. At the time of the City's
decision to extend this Contract through invoking contract extension options, the Contractor
can present a request for relief for any adverse market changes that have occurred during the
previous period of the Contract. The City is under no obligation to give consideration for those
adverse changes as a condition for invoking the contract extension option.
Section 2. DeTnitions — "Contamination': Section I of the Contract, entitled "Definitions," is
amended to revise the definition of"Contamination"as follows:
AMENDMENT#I —Page 3 of 7
to Garbage, Recycling,Yard& Food Waste
Collection and Disposal/Marketing Contract
Contamination: The term "Contamination" includes:
l. Any item(s) incorrectly placed in the garbage, recycling, or eafflpest Yard& Food
Waste Cart Merin which it is not accepted in quantities of 2-"O 10%or greater
by volume. Such items or contaminants diminish the quality and condition of all
other material it contacts, rendering it unsuitable to recycle or compost.
quaiitities of(2) Any item(s) disposed of as garbage that is deemed fee),elable or- eemposiable in
Section 3. Contract Term. Section 11.1. of the Contract, entitled "Term of Contract" is amended
as follows:
1. Term of Contract
The service term of this Contract is sever (7)thirteen(13)years starting April 1,2016,and
expiring March 31,2-3 2029. The City may,at its sele eption, extend the Gentfael for up
Gentr-aeief ffem time to time. To exeFeise its eptien to extend this Centfaet, fiefice shall be
given by the City to the Gentraeter- ne less than two hundfed seventy (270) days prior-to
__ the tefms and eeRditiens of this Centmet, as may be amended by the 045, and
Section 4. Requirement to Rect}cle and Compost. Section I1.2.1.11 of the Contract, entitled
"Requirement to Recycle and Compost,"is amended as follows:
2.1.11 Requirement to Recycle and Compost
The Contractor shall recycle or compost all loads of Source-separated Recyclables and Yard
&Food Waste collected, unless express prior written permission is provided by the City.The
disposal of contaminants separated during processing is acceptable to the extent that it is
unavoidable and consistent with industry standards. Obvious contaminants included with
either Source-separated Recyclables or Yard & Food Waste shall not be collected, and shall
be left in the Customer's container with a prominently displayed notification tag(per Section
2.1.9) explaining the reason for rejection. The Contractor will routinely inspect containers,
addressing known problem areas and providing rotating inspections across all areas of the
City, with the goal of inspecting all residential and multifamily ecycling and yard & food
waste containers at least once a year. If the Contractor finds visually obvious contaminants
in a Customer's recycling and/or yard &food waste container(s), the Contractor will inspect
the Customer's container(s) at least twice more in the two months following the on inal
contamination incident.
The Contractor may refuse to collect either Recyclables or yard & food waste if the
containers include visually obvious contaminants. If the Contractor identifies repeated
contamination by a Customer despite the Contractor's tagging and educational efforts, the
Contractor may remove the Customer's recycling and/or yard & food waste container(s).
AMENDMENT#] —Page 4 of 7
to Garbage,Recycling,Yard&Food Waste
Collection and Disposal/Marketing Contract
The Contractor shall develop and implement a contamination reduction program At a
minimum, the program shall include the following elements in addition to the promotion
and education responsibilities under Section 2 3 5
I. Customer education about new contamination reduction protocols in advance of
program implementation:
2. At least monthly monitoring and documentation of curbside contamination,•
3. Increased reporting on contamination occurrences such as monthly reporting,on the
number and location of inspected containers:
4. Progressive enforcement of recycling and vard & food waste standards via timely
customer contact and potential container removal,•
5. Procedures for allowing Customers to reinstate and resume recycling and/or yard
food waste service if service has been suspended
6. Enhanced communication and outreach for Customers including website
improvements and the development of multifamily outreach materials such as
guidelines and posters; and
7. Annual inspections and reporting of rec cling truck loads from City routes
The Contractor shall submit a draft to the City of its contamination reduction plan no later
than October 25 2019. The plan will be finalized by November 22 2019 and implemented
by January 2 2020 As the plan's emphasis and contamination thresholds aay change from
time to time to reflect market conditions the Contractor shall submit to the City a revised
draft of the plan no later than November 1 of each following year. starting November 1
2020. The City and Contractor shall then finalize the plan by December I and implement it
by January 2 of the following_year.
The Contractor shall provide such information as the City may request regarding aggregate
contamination data that the Contractor has collected and maintained. However
notwithstanding the foregoing or any other provisions of this Amendment or Contract the
Contractor shall not provide any information to the Citv regarding the specific contents of
any individual Customer°s container.
Section S. Collection Services—Remise List ofAceentable Recyclables Section IL2.2.2.1. of the
Contract, entitled "Subject Materials," that relates to acceptable Recyclables from single-family
residences is amended to revise the list of materials acceptable for recycling as follows:
2.2.2 Single-family Residence Recyclables Collection
2.2.2.1 Subject Materials
The following recyclables, when collected, must be prepared as follows and must be
uncontaminated with Food Waste, Garbage, or other residues, (or Contamination charges
and appropriate return trip fees may apply):
AMENDMENT#1 —Page 5 of 7
to Garbage,Recycling,Yard c4 Food Waste
Collection and Disposal/Marketing Contract
Plastics: All plastic bottles,jugs,tubs,cups, food containers,plastic plant pots,and container
lids wider than three (3) inches, buckets with metal handles, milk/soda crates, laundry
baskets, lawn furniture, landscape and microwave trays, totes-any size, drums, pet carriers,
pallets, coolers shelving closet organizers, dish strainers, flower pots, empty garbage cans,
PVC & PET blister packs, five(5) gallon water bottles, deli trays& clamshells, plastics #I-
7,aseptic containers,toys,playhouses,and mixed rigid plastic,autemetive plastie, bumpe ,
side view mirFer-s t,,.",aps Other plastics or hazardous product containers are excluded.
Plastie Bags:All elean plastie shopping bags,newspapeF bags md dFy eleaning bags(bagged
together).
Section 6. Ratification.All acts consistent with the authority of this Amendment#1 and prior to
its full execution by the parties are ratified and affirmed, and the terms of the Contract and this
Amendment#1 shall be deemed to have been applied effective as of September 1, 2019.
Section 7. Remaining Provisions. Except as specifically amended by this Amendment #1, all
remaining provisions of the Contract shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Amendment #1, which shall
become effective as of September 1,2019.
CITY OF KENT KENT-MERIDIAN DISPOSAL COMPANY
By: `- By.
Dana Ralph, Mayor Its:
Attest:
City Clerk
Approve to form:
Et
C ty tt ey
AMENDMENT#I —Page 6 of 7
to Garbage, Recycling,Yard& Food Waste
Collection and Disposal/Marketing Contract