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HomeMy WebLinkAbout22 - Terminating Non -Exclusive Commercial Solid Waste Franchises - CorrespondenceReceived After Agenda Printed May 12, 2020 Item No. 22 KEY DISPOSAL INC. May 8, 2020 Mr. Keith Hinckley Contracts and Safety Manager Public Works Department City of Newport Beach, CA 92663 Dear Mr. Hinckley: As President and owner of Key Disposal and Recycling, a licensed commercial waste hauler/recycler in Newport Beach, 1°write this letter as a follow-up to my April 24 letter to yourself and the City Council. With respect to your report to cancel Key's operating license in Newport Beach, it was acknowledged that Key has been in compliance with the City insurance requirements. As it pertains to the collision avoidance requirements we have demonstrated our efforts to comply, seeking equipment manufacturers which the City has recommended, our attempts to purchase this equipment, and finally our receipt of the correct equipment and installation on our vehicles. This was explained in our April 24 letter. I believe your records will show Key has served Newport Beach commercial customers for many years, providing low competitive rates and excellent service. I look forward to participating in the May 12 City Council meeting, answering any questions, and hope Key has the opportunity to continue to serve Newport Beach commercial customers for many years to come. Sincerei '. Join h'atangian, Owner/President cc. Newport Beach City Council K R ==ZU DISPOSAL INC. April 24, 2020 Mr. Keith Hinckley Contracts and safety Manager Public Works Department City of Newport Beach, CA 92663 Dear Mr. Hinckley: I am President and Owner of Key Disposal and Recycling, a licensed commercial waste hauler in Newport Beach. I am writing you in reference to your April 21, 2020 memo in which you state Key is out of compliance regarding insurance and collision avoidance requirements. We do not believe this is the case. Attached is our Key insurance documents meeting your requirements. Regarding the collision avoidance requirements, attached is our purchase documentation. This does not represent Key's noncompliance, but rather our efforts to utilize equipment that is in conformance with City approvals. in this regard, Key last year obtained a City generated list of equipment suppliers. We responded to a number of companies an this list, several of which were unresponsive, others promised the equipment with no delivery, until we were able to purchase the equipment. It has been installed by our company and now operational on our trucks. Key Disposal & Recycling has served Newport Beach commercial customers for many years. Our long successful record of excellent service at low competitive rates in Newport Beach is well documented by our customers. As Newport Beach has stated in the past, commercial waste collection competition is a key to lower commercial rates and excellent service. I hope you and the City Council will recognize our role in the City commercial waste collection picture, our adherence to City collection requirements, and NOT terminate our license to serve Newport Beach commercial customers. ZSincer , hn Katangian, Owner/President cc. Newport Beach City Council P.O. Box 459 9 Montebello, California 90640 • Telephone (323) 7215441 0 Fox (323) 721-8601 A� i; CERTIFICATE OF LIABILITY INSURANCE DATE A E(MMMDfY ) THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AM END, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER, IMPORTANT: If the certificate holder Is an ADDITIONAL INSURED, the policy(les) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in !leu of such andorsement(s). PRODUCER CONTACT Erin Viker NAME: McConnel . Marit & Trout ImLrance Services, LLC PHONE (805) 545.8206 FAX (805) 54&8224 AIC. Not P.0 Box 637 ADDetin DQmmtlnsufanCe.COm A INSURER(S) AFFORDING COVERAGE MAIC 0 INSURER A: Crum & Forster Specialty Insurance Co 44520 San Lu s Obl_po CA 93406 INSURED INSURER 0: Scottsdale Insurance Company 41297 Key Disposal & Recycling, Inc INSURER C; State Compensation Insurance Fund 35076 P.O. Bcx 459 INSURERD: GuldeOne National Insuance Co, 14167 INSURER E: Monlebelio CA 90640.0459 INSURER,: COVERAGE5 CERTIFICATE NUMBER: ZU-z1 Newpon F2FVIS1nN NIIMRFR- THIS IS TO CERTIFYTHAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TOTHE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRSED HEREIN IS SUBJECT TO ALL THE TERMS EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. ILTR TYPE OF INSURANCE 100 Civic Center Drive SUER Ion POLICY NUMBER AADDL POLICY A1 MDNY1 % POLICY rYY LIMITS X COMMERCIAL GENERAL LIABILITY CLAWS -MADE � OCCUR EACH OCRRNS 1,000,000 OAALAUF- S 50,000 PREMSES lEa MED EXP(Any one personl $ 5,000 PERSONAL 3ADV INJURY $ 1,000,000 A Y Y EPK-129793 0112812020 01/2812021 GEN'LAGGREGATELIA9TAPPLIESPER• X POLICY El ECOT- F LOC GENERAL AGGREGATE S 2,000,000 PRODUCTS-COMPIOPAGG S 1,000,000 Contractors Pollution 5 5,000,000 OTHER: AUTOMOBILEUABILrrY 6999M1EOSINGLELU.AT $ 1,000,000 ret) ANY AUTO BODILY INJURY (Per person) S e OWNED iCSCHEDULED AUTOS ONLY AUTOS Y Y ZFSOOD3041 01128/2020 01/28/2021 BODILY INJURY (Per accident) S X HIRED NON -OWNED AUTOS ONLY AUTOS ONLY PROPERTY DAMAGE S r accl an', Medical payments S 5,000 UMBRELLA LIAR X OCCUR EACHOCCURRENCE S 5,000,000 A x EXCESS LIAB CLAIMS -MADE EFX-114538 02/1312020 01/28%2021 AGGREGATE S 5,000,000 DED RETENTION s S C WORKERS COMPENSATION AND EMPLOYERS' YIN LIABILITY ANY PROPRIETORIPARTNER/EXECUTIVE OFFICERUMEMBEREXCLUDEDi (MandatoryinNH) If yes, describe under DESCRIPTION OF OPERATIONS below NiA 9258116-2019 07!27!2019 07/27!2020 X PER OTH- TAT R E.L.EACHACCIOENT S 1,000,000 E.L. DISEASE - EA EMPLOYEE S 1.000,000 E.L. DISEASE • POLICY LIMIT S 1.000,000 D 2nd Layer Excess 56000176000 02/13/2020 01/282021 Each Occurrence 4,000,000 Aggregate 4,000,000 DESCRIPTION OF OPERATIONS I LOCATIONS 1 VEHICLES (ACORD 10 t, Additional Remarks Schedule, may be attached If more space Is required) The City of Newport Beach, Its elected or appointed officers, agents, employees and volunteers are named as additional insured with respects to General Liability and Pollution Liability per EN0321-0211 and completed operations per attached EN0320-0211 and Auto Liability per endorsement to fallow. When this endorsement applies, such insurance as is afforded by the general liability policy Is primary insurance and other insurance shall be excess to the insurance afforded by this endorsement per attached END347-0217 and auto liability per endorsement to follow. Waiver of Subrogration Endorsement Applies per attached EN0347-0217 EndorsamenL SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER EXCEPT FOR NON PAYMENT OF PREMIUM. CERTIFICATE HOLDER rANrFI i ATInaJ ©1988.2015 ACORD CORPORATION. All rights reserved, ACORD 25 (2016/03) The ACORD name and logo are registered marks of ACORD SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN City of Newport Beach ACCORDANCE WITH THE POLICY PROVISIONS. 100 Civic Center Drive AUTHORIZED REPRESENTATIVE Newport Beach CA 92660�r. ©1988.2015 ACORD CORPORATION. All rights reserved, ACORD 25 (2016/03) The ACORD name and logo are registered marks of ACORD THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED -- OWNERS, LESSEES OR CONTRACTORS - SCHEDULED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name Of Additional Insured Person(s) Or 6 Organization(s): Location(s) of Covered Operations Blanket when specifically required in a written contract Blanket when specifically required in a written with the name insured. i contract with the name insured. Information r uired to complete this Schedule, if not shown above, will be shown in the Declarations. A- Section III — Who Is An Insured within the Common Provisions is amended to include as an additional insured the person(s) or organization(s) shown in the Schedule, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" cause, in whole or in part, by: 1. Your acts or omissions; or 2. The acts or omissions of those acting on your behalf; in the performance of your ongoing operations for the additional insured(s) at the location(s) designated above. With respect to the insurance afforded to these additional insureds, the following additional exclusions apply: This insurance does not apply to "bodily injury" or "property damage" occurring after: 3. All work, including materials, parts or equipment furnished in ,connection with such work, on the project (other than service, maintenance or repairs) to be performed by or on behalf of the additional insured(s) at the location of the covered operations has been completed; or 4. That portion of "your work" out of which the injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcontractor engaged in performing operations for a principal as a part of the same project. EN0321-0211 Page 1 of 1 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PRIMARY AND NON-CONTRIBUTORY ADDITIONAL INSURED WITH WAIVER OF SUBROGATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name of Additional Insured Person(s) or Blanket when specifically required in a written contract with the name insured. f Information required to complete this Schedule, if not shown above, will be shown in the Declarations. I A. Section III — Who Is An Insured within the Common Provisions is amended to include as an additional insured the person(s) or organization(s) indicated in the Schedule shown above, but solely with respect to "claims" caused by "your work" for that person or organization performed by you, or by those acting on your behalf. This insurance shall be primary and non-contributory. B. We waive any right of recovery we may have against the person(s) or organization(s) indicated in the Schedule shown above because of payments we make for "damages" arising out of "your work" performed under a designated project or contract with that person(s) or organization(s). C. This Endorsement does not reinstate or increase the Limits of Insurance applicable to any "claim" to which the coverage afforded by this Endorsement applies ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED. EN0347-0217 Page 1 of 1 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - OWNERS, LESSEES OR CONTRACTORS - COMPLETED OPERATIONS This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name of Additional Persons) or _ Organizations : ___.__v Location And Description Of Completed Operations — Blanket when specifically required in a written __ _ „-, v� Blanket when specifically required in a written contract with the name insured. contract with the name insured. Information required to complete this Schedule, if not shown above, will be shown in the Declarations. A. Section III — Who Is An Insured within the Common Provisions is amended to include as an insured the person(s) or organization(s) shown in the Schedule, but only with respect to liability for "bodily injury" or "property damage" caused, in whole or in part, by "your work" at the location designated and described in the schedule of this endorsement performed for that additional insured and included in the "products -completed operations hazard". EN0320-0211 Page 1 of 1 TN l Invoice EIESMIRL Please Pay From Invoice - PNo Statement Will Be Issued ELECTRONICS Ship VIA Inco Terms Remit Payment To: Invoice Number: 0491790 -IN 375901 Invoice Date: 4/2212020 10335 W. Emerald St. Sales Order Number: 0375901 Boise, Idaho 83704-5018 Sales Order Date: 4/21/2020 USA Customer Number: AARON (208) 323-1000 Supplier Number: PRECO Bill To: Key Disposal Inc Ship To: Key Disposal Inc Attn: John Katangian Attn: John Katangian 1141 S Taylor Ave 1141 S Taylor Ave Montebello, CA 90640 Montebello, CA 90640 United States United States Confirm To John Katangian Customer P,O. Ship VIA Inco Terms Terms 375901 FEDEX GROUND ExWorks - Boise Chrg Frt Credit Card Line Product Description Customer Part Number Qty Shipped Unit Price Ext. Price USD USD 1 GSDII8503K-3-043-6 1 $1,935.00 $1,935.00 Preview Sentr/O and Side Defender®Il system including one rear 15'x10'14mx3m sensor, one right sensor, one Q multi•direclional .n-cab-lisptay, one bmakuut cabte two 25`cables-ane Y cable-onu-16'cable-and-hardware: - ---------- — — -- -- -_ 2 PKG FOR 6980251_ SALES 1 $- KIT 3 ASTS7043-6 - -- - - ---------- 4 G2000 5 SDII8703K-3 6 SD-SK90 1 $17.22 $17.22 Bracket, 90' 7 A/BK HARDWARE KIT 1 $- Bracket hardware kit for SD-BK90 8 US CUSTOMS TARIFF 1 $18.20 $18.20 Page 1 of 2 - TN ELECTRONICS Remit Payment To: 10335 W. Emerald St. Boise, Idaho 83704-5018 USA (208) 323-1000 Bill To: Key Disposal Inc Attn: John Katangian 1141 S Taylor Ave Montebello, CA 90640 United States Confirm To John Katangian Customer P.O. 375901 Invoice Please Pay From Invoice - No Statement Will Be Issued Invoice Number: 0491790 -IN Invoice Date: 4/22/2020 Sales Order Number: 0375901 Sales Order Date: 4/21/2020 Customer Number: AARON Supplier Number: PRECO Ship To: Key Disposal Inc Attn: John Katangian 1141 S Taylor Ave Montebello, CA 90640 United States Ship VIA Inco Terms Terms FEDEX GROUND ExWorks - Boise Chrg Frt Credit Card Line Product Description Customer Part Number Qty Unit Price Ext. Price USD Shipped USD Net Invoice: $1,970.42 Freight: $25.14 Invoice Total: $1,995.56 This certifies that the goods covered by this invoice were produced in compliance with all applicable requirements of sections 6,7 and 12 of the Fair Labor Standards Act, as amended, and regulations of the US Dept of Labor Issued under Section 14 thereof Preco Electronics LLC 10336W. Emerald, Boise ID 83704 USA Phone: +1.208.323.1000 or 1.866.977.7326 FAX: +1.208.323.1034 These Items are controlled by the U.S. Government and authorized for export only to the country of ultimate destination for use by the ultimate consignee or end-users) herein Identified. They may not be resold, transferred, or otherwise disposed of, to any other county, or to any person other than the authorized ultimate consignee or end-user(s), either In their original form or after being Incorporated In other items, without first obtaining approval from the U.S. Government or as otherwise authorized by U.S. law and regulations. www.preco.com Page 2 of 2 �s i`,t F SERVICES INC May 11, 2020 To: Honorable Mayor and City Council Members of the City of Newport Beach From: CAF Services Inc. Franchise Hauler Regarding: New Requirements for Franchise Haulers We have been on the City of Newport Beach Franchise Hauling list since 2017 and we are grateful for the opportunity to operate in Newport Beach. A large part of our business is within Newport Beach, so being able to continue to operate there is very important to us as a smaller company. However, the new requirements, in particular the 10 million dollar pollution policy represents an obstacle that we may not be able to leap and will drastically impact our business and may result in our terminating employees. As a company we take compliance with laws very seriously and try to always do the right thing. So when the new requirements were communicated to us, I asked our insurance broker to try and find the required coverage. It was difficult to find and very expensive. The cost of the new insurance requirement is $ 46,000.00 in addition to our existing policy of about 27,000.00 for our current auto liability. In addition, the anti -collision equipment will range from 12,000 to 15,000 per vehicle; we have two roll -offs. For large demolition or waste companies, for example, CR&R providing that much insurance is probably normal. CR&R operated dozens of vehicles in the city daily. We have one truck in the city at any varying times. In short, the level of risk involved with our business is a fraction of CR&Rs, it seems illogical that insurance requirements would be the same. The coverage for pollution losses is not something that we, as a residential demolition company, would need. We do not haul hazardous waste of any kind and we have 100% control over the contents of our bins because we load them. When I asked a representative of the city why we would need it, I was advised that "Someone else could put hazardous materials in our bin" and I thought it was a joke. I then realized they were serious and I was completely dumbfounded. I'm not saying it is not possible, but we don't leave bins overnight, so not sure when someone could slip in sneak in hazardous material. Conversely, the trash collection operation might need that coverage because, frankly, they have no idea what might be in a trash bin. In summary, I'm simply asking that you consider revising insurance requirements that more accurately reflect risk hate to think Newport Beach is unfriendly to small companies and I understand that this new policy was recommended by a consulting group. If possible can I get a copy of the report or ask the name of the consulting group? I sincerely thank you for your time and consideration. Sincerely, Thomas Taylor, President & Owner CAF Services Inc 1 (714) 599-4440