AgdaPkt 2017-05-22 Joint SA PFA - Laserfiche WebLink

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Page | 16 SBWMA Recology Negotiations FAX Report 4/20/17 Residential and Commercial Services Residential customers will not experience any change s to their collection services, thus avoiding complaints resulting from the implementation of new services or the change in service providers. Most commercial customers will also not experience any changes to their collection services. A very small sub-set of commercial accounts (Recology has identified about 20 accounts) will need to improve their container access for Recology’s workers, or they will be subject to a new container relocation fee due to the special handling that will be required to properly service those units. There are four primary modifications to the amended and restated Franchise Agreement for residential and commercial services, which include: mixed use building services, bulky item collection, abandoned waste collection and reporting requirements. Mixed Use Buildings: The residential component of Mixed Use Buildings will receive all services currently provided to multi-family customers (including recycling, organics and bulky item collection) and the commercial element shall receive the services currently provided to commercial customers. This building type and other multifamily and commercial customers will also be able to receive bin relocation services (at an additional fee) which are required due to the below street level location of bin enclosures on the property. Bulky Item Collection: Residential customers will continue to receive up to two bulky item collection services annually within one week of request, without charge. Currently, approximately 120 bulky item collections occur daily. Once the demand for these services increases to 150 (a 25% increase), Recology can extend the service delivery date by one week. (This was done to align the services with the costs included in Recology’s Base Contractor’s Compensation.) At such time, the Member Agency, SBWMA and Recology will meet to address whether to add an additional route and compensate Recology; or, take some other action to respond to the increased demand. Abandoned Waste Collection: Member Agencies will continue to receive abandoned bulky waste collection services at no cost to the agencies or customers. A limit of thirty (30) pick-ups per day has been established, to align the services with the costs included in Recology’s Base Contractor’s Compensation. When the average number reaches 25 daily events, the SBWMA and Recology will meet to address whether to add collection resources and compensate Recology or take some other action to respond to the increased demand. Reporting: Reporting requirements have been streamlined, reducing effort in the preparation of the reports, while maintaining the reporting elements. Compensation and Rate Setting Methodology The compensation and rate setting methodology discussions took the longest to complete and are , by far, the most critical element to the negotiation process. Major discussions during the meetings contained the rate setting methodology in order to provide stability and predictability, depreciation of the vehicles, fuel cost, administrative costs, and compensation adjustments for growth in the number of accounts. Extensive discussions during the FAX Committee meetings involved the current agreemen t and any changes that would be made to Recology’s compensation. Ultimately, the Amended and Restated Agreement: 7.A - Page 26