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Home My WebLink About27 - CRR Agreement - PowerPoint 2®RAINBOW Agenda Item #27 November 12,2013 Newport Beach's Best Choice Best service Highest Diverson Employee Owned Keep Current Trashmen City Council City of Newport Beach November 12, 2013 (DRAINBOW Providing Greener Possibilities - r sw V A�� Mrs )(p's - Rainbow founded in 1957 in Huntington 1980's Reach_ Califnmia - � _ �atr 1010t ORAINBOW Providing Greener Possibilities, !.I : Le N m ENS onew �W ; a rim LO � We' "FA rp dw 7MI. ORAINBOW Providing Greener Possibilities" ■ Rainbow has served Huntington Beach for more than 50 years ■ Servicing Fountain Valley since 1970's ■Midway City & Sunset Beach Sanitary Districts since 1990's ■Specialize in Beach Communities RAINBOW ■ 4 City and 2 County Exclusive Franchises ■Rainbow also serves Costa Mesa, Irvine, Los Alamitos, Newport Beach through non - exclusive franchise agreements ■ Service Beach Bins for Newport Beach wy�s RAINBOW Best Service Same men, same streets, same great service and courtesy that the Newport Beech community values. @RAINBOW rel08oxIM6- •Pax„ 14>st, UN POaoxla]6•I]IRIo14) Wne ENVIRONMENTAL SERVICE- Hunxnfton Beach, CA nso Providing Greener Possibilities Letter of Intent October 1, 2013 City of Newport Beach Refuse Workers, Rainbow Environmental Services believes that your continued service to the community, neighborhoods and residents of Newport Beach is the key to a smooth and successful transition to private sector trash collection. We believe that Rainbow can provide Newport Beach with the best service excellence and environmental sustainability by combining your demonstrated dedication to personal service with Rainbow's established leadership in recycling and landfill diversion. I am pleased to express our enthusiastic desire and intent to employ the current Newport Beach Refuse Division personnel in our effort to offer the highest quality refuse and recycling collection services to the residents of Newport Beach. As evidence of our commitment to maintain our better service standards for Newport Beach, Rainbow hereby expresses its intent to maintain or improve current wages and salaries for all currently employed Refuse Division workers and supervision personnel. Employment is offered without any probationary conditions and seniority rights will be recognized. Rainbow's vacation, paid time off (PTO), pension and health care insurance benefits may vary slightly from the OCEA agreement currently in effect with the City. However, it is Rainbows expressed Intent to secure and maintain an agreement offering "Cadillac level" benefits and pension plans to all Newport Beach refuse workers represented through Teamsters Local #396, the organization that represents all other solid waste workers and United Parcel Service workers in Orange County. In addition, Newport Beach refuse workers who transition to Rainbow will become part of the Employee Stock Ownership Plan (ESOP), which provides an additional retirement benefit for you and your families. Further, Rainbow intends to minimize disruption for residents, refuse workers and the community by maintaining the same route service schedules, work reporting requirements and supervision currently in place in the City of Newport Beach. This "same or better service" model, which employs the existing loyal refuse workforce, is the foundation of Rainbow Environmental Services' proposal to Newport Beach, as it has been since the start of the RFP process. We are pleased to offer each of you long term career employment and high job satisfaction with our employee owned company. Best Regards, President Rainbow Environmental Services Printed on recycled content paper Rainbow is a 100% Employee Owned Company (ESOP) THE ORANGE COUNTY PtEGfl&TF-A_ Huntington Reach named state leader in recycling wrxy.47� LMMe .�=I ICatimrmab d. 9110L AMW =7 k III IIII —IcrI,I 'I II F(EA-'*:,0RA1NBqW - .. - - • Providing Greener Possibilities Clean ` C &Dye 1 y MRF LL_ a IjAftrt Aggregates` I MRF ru #® rt Y T, J 1 -3 i4 1 4A au Organics MRF Mixed Waste MRF -a , (0 .. I sir r6 Anaerobic Digestion on -site at Rainbow Campus (g)RAINBOW ENVIRONMENTAL crnr ?Ff'" CALRecycle — 75 Percent Initiative C vmw .calreccycle.ca.gov/75percent/ 1+24 " Cad Reeye�e Skip lo: Content Footer Accessibility Search tl L A -Z Index Q California :q, CalRecycle » 75 Percent Initative California's 75 Percent Initiative: Defining the Future .......................................................................................................................................................... ............................... » Focus Areas The Legislature and Governor Brown set an ambitious goal of 75 percent recycling, composting or source reduction of solid waste by » CalRecycle Events 2020. Instead of focusing primarily on local diversion, the law calls for the state and the Department of Resources Recycling and Calendar Recovery (CalRecycle) to take a statewide approach to decreasing California's reliance on landfills. CalRecycle has been tasked by >> About CalRecycle the Legislature to examine how extensions of existing efforts, as well as new strategies, can be combined to reach that policy goal. Fall 2013 Update 0 To keep stakeholders up to date on how we've integrated their feedback into the revised concepts for the statewide strategy. an update was published in October 2013 (PDF, 2.3 MB). It includes a refined concept list and summaries of stakeholder comments on the May 2012 concepts- This update also reflects ongoing staff work and collaborations with our sister agencies to move forward waste management recommendations that meet integrated environmental. energy. and economic policy objectives. Six focus areas rise to the top at this juncture: ->> Moving Organics Out of the Landfill » Continuing Reform of the Beverage Container Recycling Program -» Expanding the Recycling/Manufacturing Infrastructure: Permitting/Compliance Assistance and Financing a> Exploring New Models for State and Local Funding of Materials Management Programs Promoting State Procurement of Postconsumer Recycled Content Products n Promoting Extended Producer Responsibility We look forward to hearing any 'new' ideas you may have that are not already included in the concepts. Statewide Strategy for Reaching the 75 Percent Goal To facilitate the development of that statewide strategy, CalRecycle developed a discussion document in May 2012 and held (=JR,AINEN BOW Changes in Diversion Calculations No more transformation (burning) diversion credit (currently 10 %) No more ADC / Organics ban in landfill (approximately 30 %) Major changes in comr Source reduction reset (PPD) 9.6 PPD for base year (6.25 PPD for 6 -year) cR&R Basic Service Customer Collection (excluding extended services) Compensation Amount $304,220 /month highest diversion Extended Services Extended Services Enhanced Sulky Item Collection (billed to City) Enhanced Sulky Item Collection (billed to City) Billed to Cityfor Program $ - /month $ 350 /month $ - $ - /month $ - /month $ - $ 850 /month $ (125,000) /month Billed to Cityfor Program $ 500 /month $ 350 /month $ - $ 2,083 /month $ 10,417 /month $ - $ 1,250 /month $ (35,000) /month Billed to Customers for Pickups Above Four per Year(assumes 10 @$35.00/ea.) Draft Contract includes additional $925,830 annually for diversion enhancement to 65% Container Pull -Out Service for Disabled no charge Sharps Collection Program HHW Door-to-Door Collection Program Annual Shred Day no charge EmergencyCollectionServices - (assumes 10 hours\month @ $125\hr.) Transfer Station Operating Agreement Payment Payment To City LESS: Monthly Paymentto City by Hauler -See Exhibit DIVERSION ENHANCE ME NT to 65% Min. Ouarantee(Exhibit 8.1.14 of Draft Contract) $ 77,115 /month TOTAL MONTHLY COMPENSATION @ 65% DIVERSION $360,935 /month ®RAINBOW Basic Service Compensation Amount Customer Collection (excluding extended services) $480,330 /month Extended Services /month Enhanced Sulky Item Collection (billed to City) Billed to Cityfor Program $ - /month $ 350 /month $ - $ - /month $ - /month $ - $ 850 /month $ (125,000) /month Billed to Customers for Pickups Above Four per Year(assumes 10 @$35.00/ea.) Container Pull -Out Service for Disabled no charge SharpsCollectionProgram HHW Door -to -Door Collection Program Annual Shred Day no charge EmergencyCollectionServices — (assumes 10 hours\month @ $85\hr.) Transfer Station Operating Agreement Payment Payment To City LESS: Monthly Paymentto City by Hauler —See Exhibit TOTAL MONTHLY COMPENSATION W $356,530 /month DIVERSION ENHANCEMENTto 75% Min. Guarantee (Exhibit B -8of Draft Contract) $ - /month TOTAL MONTHLY COMPENSATION @ 75% DIVERSION $356,530 /month Rainbow's proposal includes 75% diversion. No upcharge! 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% q)RAINBOW r Rate Stability Comparison 19.40% 2006 -2012 ■ Huntington Beach ■ Newport Coast (DRAINBOW' Best Newport Beach Providing Greener Possibilities'" •Best Service — Same trusted men, same blue trucks •Best Diversion — State Leader in Recycling; Highest Guaranteed Diversion Rate for Newport Beach •Best Company —For New Owned Company (ESOP) •Best Value — Lowest cost •B;s Vision for the %-Pit CESOPI TM uvs* ►port Beach Re for highest di% futbre 1 t .t, THE ORANGE COUNTY RWISvMR- Huntington Beach named rs i o"te leader in recycling Surf City and Fresno tied as the top recycling cities recognind by a California board. L IF