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Costa Mesa Sanitary District (CMSD)
Yearly Performance Review of
CR&R, Environmental Services
CR & R
INCORPOR A TED
environmental services
December 12, 2017
Prepared by Nabila Guzman, Management Analyst I
YEARLY PERFORMANCE REVIEW OF CR&R, INCORPORATED
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(Per Section 40 of the Agreement)
Per Section 40 of the Agreement, the "DISTRICT shall complete a yearly performance
review of the trash collection and recycling program on a yearly basis and CONTRACTOR
and DISTRICT shall meet to discuss and resolve problems that may be occurring in the
programs. DISTRICT shall prepare a performance Agreement between the Costa Mesa
Sanitary District of Orange County, California, hereinafter called "DISTRICT", and CR&R,
Environmental Services. A California corporation hereinafter called "CONTRACTOR" for
Trash Collection, Hauling, Special Service, Support of DISTRICT programs and recycling
services.
Award Date: Second Amendment to the Agreement: February 25, 2014.
Service Description: CONTRACTOR furnishes all labor, material and equipment necessary
for the collection of all solid waste as hereinafter defined from single family dwellings
and multi-family dwellings using curbside service within the boundaries of the DISTRICT
except certain residences in the geographical limits of the City of Newport Beach, as said
boundaries now exist or may hereinafter exist and the disposal of such solid waste.
CONTRACTOR provides containers for all single-family and small multi-family residents
utilizing curbside collection inside the DISTRICT. CONTRACTOR provides transfer station
services for the acceptance of Solid Waste from DISTRICT for the purpose of recovery
and reclamation of recyclable materials and the transfer of un-recyclable residue to
Orange County landfill sites or otherwise as the DISTRICT may direct.
Name of Contractor Address of Contractor
CR&R, Environmental Services 11292 Western Avenue
Stanton, CA 90680
714-826-9049
Evaluation Term:July 1, 2016—June 30, 2017
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PART I - EVALUATION OF CONTRACTOR'S PERFORMANCE
The contractor should be evaluated using the following ratings:
E = Excellent: Contractor exceeded the requirements. Explain how.
S =Satisfactory: Contractor met the requirements. If the contractor had difficulty
meeting the requirements, explain why.
U = Unsatisfactory: Contractor did not meet all of the requirements. Explain all
noncompliance's or unsatisfactory performance, and whether and how the contractor
was at fault, where applicable.
N/A= Not Applicable. Does not apply to the contract.
EXPECTATION = DISTRICT'S expected corrective action or recommendation or notice for
continued Excellent performance.
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1. Cost/Price Control (Para 2, 11 and Exhibit "A").
Rating: E: S: U: N/A: Trash Revenue Accounting (Para 28, 34)
Rating: E: S:
U: N/A: Most Favorable Net to Hauler Rate (Para 31)
Y
Rating: E S ✓' U N/A . Consider: Did the contractor complete the
contract within the contract amount or did the contractor experience cost growth?
Were unnecessary cost/price change proposals submitted?
Comments: Per the Second Amendment to the Agreement, "the District's goal is to
maintain net-to-hauler rates that do not exceed ten percent (10%) of the County
average (less the AD project costing or other special charges making the rate
comparison inequitable) during the term of this Agreement. District net-to-hauler rates
shall be calculated each calendar year by taking the total compensation paid to
Contractor and dividing it by the total number of units serviced (excluding the Organics
Recycling Program charges)..."
The standard per-unit net-to-hauler payment for the review period increased to $17.94
from $17.13 in FY 2015-16, due to per-ton processing charge increase for organics that
became effective September 16, 2016. CR&R's increased net-to-hauler calculation is
$0.27 below the County average plus 10% that the agreement allows ($16.56 + $1.65 =
$18.21). The average excludes Laguna Woods (per Agreement); therefore, CR&R is in
compliance with maintaining the "most favorable" net-to-hauler rate for the District.
2. Schedule Control (Para 7, 8, 9, 10). Rating: E S ✓ U_N/A
Consider: Did the contractor meet the original performance schedule for route
collections? Did the reported number of missed collections exceed three per month?
Comments: District staff tracks hauler complaints using GovOutreach software the
District's mobile and web application. Residents can enter information about a missed
large item pickup, a missed weekly curbside pickup, as well as requests for cart
replacement. Additionally, staff also began logging hauler complaints in April 2017 that
come in through email or a phone call after noticing that CR&R's monthly complaint log
had two or three complaints per month when staff was constantly assisting more
residents with problems.
There were a total of 39 missed curbside pickup complaints received through
GovOutreach from June 2016 to July 2017. Staff received the highest number of
complaints in October 2016 with 6 requests for missed pickups. 5 complaints were
received in the months of July 2016, November 2016, and April 2017, which exceeds
their goal of less than three per month. In addition to complaints received through
GovOutreach, staff logged 22 separate complaints about missed pickups received via
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email and phone calls, but staff believes that the actual number is much higher. In
comparison, CR&R's monthly complaint reports for fiscal year 2016-2017 only reported
a total of 26 missed pickups for the entire year. According to District records, the month
of April received a total of 11 missed pickup complaints, but CR&R records show there
were no complaints that month. While staff is concerned about the increase number of
missed collections, it is still less than 1% of the 22,518 units CR&R collects every week.
It is also important to note that the same resident was missed multiple times over the
course of a few months. Although CR&R is very responsive when scheduling courtesy
pickups, staff did experience a problem with lack of documentation from drivers and
customer service representatives. For example, if a call was made to report a missed
pickup, that call was not logged for their records, so if staff or the resident called again,
it was treated as a first time offense. For residents whose carts were constantly missed,
an alert on their account was requested for driver's to be aware of the problem, but
trash carts were continued to be missed. District staff always requests that notes on
that account be shared to see if it is the drivers fault or if the resident is not placing their
carts out on time. Additionally, staff is always notified that there are no notes on the
account. This impedes District staff's ability to resolve the problem and figure out who is
at fault. It is plausible that the multiple missed collections are due to the carts being
placed on the curb after CR&R's truck drove by. In fact, CMSD's code enforcement
officer witnessed a resident placing his cart on the curb after the truck drove by his unit.
CR&R and staff received many complaints from this particular resident noting that his
carts were not being emptied. Staff having access to CR&R's Global Positioning System
(GPS), or CR&R allowing CMSD to install its own GPS in their trucks would help resolve
missed collection complaints.
3. Contract Administration (Para 11 C). Rating: E S ✓ U N/A
Consider: Did the contractor respond to Government correspondence in a timely
manner? Were contract modifications promptly executed? Were weight tickets
submitted on time to validate invoicing? Did contractor submit the occupancy report
within the first three days of the month (Para 4, 17)? Were invoices submitted
correctly?Were contract discrepancies/problems reported promptly?
Rating: E: S:1 U: N/A: Corporate Structure Changes Communicated (Articles,
Bylaws, stock register/ownership, Statements) (Para 5)
Rating: E: S:if U: N/A: Timely Weight Ticket Submittals (Para 16)
Rating: E: S: U: N/A: Contractor shall record and provide a log of complaints
1 on a monthly basis (Para 22)
Rating: E: S:✓ U: N/A: Information Cards (Para 25)
Rating: E: S:1 U: N/A: Transfer Station and/or AD Service (Para 27)
Rating: E: S:v U: N/A: Annual Facility Tours Provided (Para 32A)
Rating: E: S:S U: N/A: Annual Seminar Conducted (Para 32B)
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Rating: E: 5:✓ U: N/A: Biennial Brochure Mail out (Para 32C)
Rating: E: 5:V' U: N/A: Est. $10,000 Public Edu. Fund (Para 32D)
Rating: E: 5: ✓ U: N/A: Provided $500 Recycling Cash Donation (Para 32E)
Rating: E: 5:,f U: N/A: Annual $10,000.00 Cash or Services (Para 32F)
Rating: E: S:✓ U: N/A: Full Expenditure by end of FY (Para 321)
Rating: E: 5:✓ U: N/A: Annual Audited Financial Statements Provided with
Audit Trails and All Recycled Materials Revenue (Para
34)
Rating: E: 5: V U: N/A: $5,000 Anti-Scavenging Provided (Para 36)
Rating: E: S: U: N/A: Master Manifest Availability (Para 37)
Rating: E: 5:✓ U: N/A: Master Manifest Delivered Upon Request (Para 37)
Rating: E: 5:1 U: N/A: Tonnage Documentation by Truck Identification
Number, Route and Date Electronically on the First Day
of Each Month (Para 37)
Rating: E: 5:✓ U: N/A: Master Manifest Completeness (Para 37)
Rating: E: S:�/' U: N/A: Annual Performance Review Participation (Para 40)
Rating: E: 5:✓ U: N/A: DISTRICT Indemnification/Defense/Hold Harmless (Para
42)
Rating: E: 5:/ U: N/A: $50,000 Performance Bond Maintained (Para 44)
Rating: E: S:✓ U: N/A: $5,000,000 Public Liability Policy (Para 45)
Rating: E: 5: U: N/A: Worker's Compensation Insurance Maintained (Para 46)
Rating: E: S:V U: N/A: Federal, State and Local Law Compliance (Para 47)
Rating: E: 5:�/` U: N/A: Appropriate Licenses and Permits Maintained (Para 48)
Rating: E: 5: V U: N/A: Employment/Non-Discrimination (Para 49)
Rating: E: 5: S' U: N/A: Drug Awareness Program Established and Maintained
(Para 50)
Rating: E: 5: V U: N/A: 40%or Greater Stock Assignment (Para 51)
Rating: E: S: 1 U: N/A: Corporate Structure Changes Communicated (articles,
bylaws, stock register/ownership, statements) (Para 5)
Comments: CR&R maintains excellent correspondence, attends every District Study
Session and most Board meetings and responds to emails in a timely manner.
CR&R promptly sends District staff month-end reports (weight tickets, occupancy
reports, HHW work orders and complaint log) for processing, but there has been an
ongoing issue with invoices being incorrect. Weight tickets are checked against invoices
for accuracy and they always check out, but invoice totals have been consistently off by
a few cents during FY 16-17. The accounting issue has been discussed with CR&R staff,
but the District has been told to pay the amount that staff thinks is correct.
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The occupancy reports had some minor errors, such as repeat accounts, which District
staff and CR&R staff have been able to resolve quickly. Additionally, District staff is
experiencing inaccuracy of CR&R's monthly complaint log. There will typically be two to
three complaints per month, while the District staff's log shows the number of
complaints to be much higher.
4. Responsiveness to Government Rating: E S ✓ U N/A
Consider: Were complaints from the District resolved in a reasonable and cooperative
manner? Were telephone calls responded promptly? Were controversial issues resolved
amicably? Was the contractor reasonable and responsive to the District's needs?
Rating: E: S: U: N/A: Public Outreach (Para 25, 32)
Rating: E: S: ✓ U: N/A: Special Programs-Battery Recycling
Program (Para 15W)
Rating: E: S:✓ U: N/A: Christmas Tree Collection (Para 15B)
Rating: E: S: i/` U: N/A: Holiday Collections (Para 10)
Rating: E: 5:✓ U: N/A: Special/Humanitarian Requests (Para 15C)
•
Rating: E: S: 1/' U: N/A: Residue/Flow Control (Para 29)
Rating: E: S:✓ U: N/A: Site Access to DISTRICT (Para 38)
Rating: E: S:1/ U: N/A: Plant Tours On Request (Para 39)
Rating: E: S:1 U: N/A: DISTRICT Audit Rights Honored (Para41)
Comments: Overall, CR&R is responsive to District requests and calls. In regards to
public outreach, CR&R provided special event trash boxes for community events such as
the Costa Mesa Foundation's Concerts in the Park series, the Costa Mesa Community
Run, the Lions Club Fish Fry, and the City of Costa Mesa's Action Arts in the Park.
Additionally, CR&R provided a bale of aluminum cans (along with a driver/attendant) for
the annual "Count the Cans" contest at the Costa Mesa Community Run. Upon request,
CR&R updates the signage on their collection vehicles to promote District programs.
Improvements can be made in regards to the distribution of printed materials. District
staff provided CR&R with feedback regarding a draft brochure in June of 2016 and CR&R
did not provide the District with a finalized brochure during FY 2016-17. District staff is
unsure of whether this brochure was ever provided to residents. Thus communication
and coordination regarding public outreach should increase to ensure that District staff
is aware of all distributed materials and efforts by CR&R.
Additionally, the District received numerous complaints about missed Christmas tree
pickups in the weeks following New Year's Day because the holidays fell on a Sunday.
Many residents assumed trash collection would be delayed by one day because
government offices were closed on Monday. Additionally, CMSD mistakenly identified
Christmas Day as a trash delayed holiday on the District website which added to the
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confusion. The extent of missed pickups attracted media attention and negative
feedback on social media. The Board of Directors also received complaints directly from
members of the public. Lawrence Jones, CR&R's Sustainability Specialist at the time,
was unresponsive to several attempts from District staff to make contact and obtain
updates regarding the Christmas tree collection issues. Staff contacted other cities being
serviced by CR&R and learned many residents in those cities made the same assumption
CMSD residents did. CR&R attempted to mitigate confusion by conducting robo calls
over Christmas weekend, but CR&R has been in the solid waste collection business for
50 years and knew that every seven years Christmas and New Year's Day will fall on a
Sunday. CR&R should have done a better job notifying their customers that the trash
collection would not be delayed one day. Additionally, CR&R should have notified
District staff about the robo calls in order to help coordinate efforts and streamline
messaging to the public. CMSD could have assisted CR&R in getting the word out by
notifying residents on social media, CMSD's newsletter, and newspapers such as The
Daily Pilot and OC Register and/or mailing postcards.
5. Contract Compliance with Operational Requirements.
Rating: E S /U N/A . Consider: Were all of the contract requirements
met? Were problems resolved? Are the delivered items or services used for the purpose
intended? If not useable, why not? Specifically rate the following operational
subcategories:
Rating: E: S:✓ U: N/A: Overall Quality of Service:
Rating: E: S:% U: N/A: Prompt Weekly Collection (Para 7)
Rating: E: 5:✓ U: N/A: Contractor Equipment/Identification
List/Environmentally Friendly Fuel Program
(Para 12)
Rating: E: S:✓ U: N/A: Vehicle Waste Leak Prevention (Para 12)
Rating: E: S:✓ U: N/A: Vehicle Waste Leak Clean-Up (Para 12)
Rating: E: S:V U: N/A: Accumulated Trash Reported (Para 14)
Rating: E: S:q/ U: N/A: Vehicle Cleanliness (Para 12)
Rating: E: 5:V/ U: N/A: Quarterly Signage Rotation (Para 12)
Rating: E: 5:✓ U: N/A: Customer Satisfaction is Number 1 (Paras 20,
22, 36)
Rating: E: 5:V U: N/A: Customer Change out Requests
Rating: E: S:✓ U: N/A: Accuracy, Thoroughness and Timeliness
Rating: E: S:y/ U: N/A: Adherence to Approved Schedules (Paras 7,
8, 9, 10)
Rating: E: S: U: N/A: Resolution of Delays (Para 10)
Rating: E: 5:V U: N/A: Notice of Labor Disputes/Resolutions (Para
10D)
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Rating: E: S: ✓ U: N/A: Provide and Maintain the Containers (Para
11B)
Rating: E: S:✓ U: N/A: 8AM-5PM Office Hours (Para 21)
Rating: E: S:yl U: N/A: After Hours Voice-mail/Replies (Para 21)
Rating: E: S: U:f' N/A: Monthly Complaint Log Delivery (Reports,
Complaints and Pleadings) (Para22)
Rating: E: S: U: N/A: AB939 Compliance (Para 27)
Rating: E: S:✓ U: N/A: AB939 Education Program Provided (Para
32, 6)
Rating: E: 5:fr U: N/A: Controllable Waste Delivered to MRF (Para
28)
Rating: E: S:✓ U: N/A: Waste Diversion (Para 30)
Rating: E: S:ff U: N/A: Residue Sent to Designated Disposal Facility
(Para 28)
Rating: E: 5:f� U: N/A: 50% Diversion Rate Met (Para 30)
Rating: E: 5:if U: N/A: Maintained Graffiti-Free Containers (Para
36)
Rating: E: 5:f' U: N/A: Master Manifest (Para 37)
Comments: As mentioned in previous sections, District staff has found the monthly
complaint log to be inadequate. The complaint log will typically only have two to three
complaints per month when staff had requested double the courtesy pickups or
transferred calls to CR&R for other reasons.
CR&R placed a new banner on the vehicles for lockable containers. On July 20, 2016, a
resident on Magnolia Street placed a five gallon paint bucket in one of the trash carts.
When CR&R emptied the cart, paint spilled onto the street and onto the truck. CR&R
sent a professional cleaning crew to remove paint from the street and afterward there
was no evidence of the paint spill on Magnolia Street.
On August 30, 2016 CR&R experienced a "Hot" load in one of their trucks on Fullerton
and Walnut. The load was dumped on the street, so the Fire Department could
extinguish it. Then City crews assisted with the clean up by removing the load from the
street. The trash was taken to the City yard and then CR&R had a 40-yard roll-off
container delivered the next day so that they could haul the burnt trash away for
disposal. In addition, a CR&R cleanup crew was dispatched to the neighborhood to
pressure wash and clean any residual from the load fire. The cause of the fire could not
be determined.
CR&R was very cooperative in resolving an on-going dispute on Wilson Street, in which a
resident claimed CR&R was refusing to empty his organics carts. CR&R staff met with
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CMSD staff and the resident. Together the parties worked out a resolution that was
agreeable to everyone.
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The Master Manifest substantiates a 59.44% diversion rate for the audit period;
therefore CR&R has met the required 50% diversion rate, as requested in the
Agreement. CMSD would like to see more cooperation from CR&R in the District's
efforts to increase its diversion rate to its goal of 75%.
6. Key Personnel (Paras 5, 24). Rating: E S✓ U N/A . Consider: Did the
personnel have the knowledge and expertise necessary to perform the operational and
management requirements? Were changes in key personnel made? How often were
they made?
Rating: E: 5:✓ U: N/A: District Approved Ops Mgr. (Para 20)
Rating: E: S:✓ U: N/A: Liaison/Interfaces Appointed (Para 24, 54)
Rating: E: S:✓ U: N/A: Driver Conduct/Uniforms (Para 26)
Rating: E: S:✓ U: N/A: Evidence of Driver Scavenging (Para 26)
Rating: E: S: U: N/A: Driver Solicitation of Gratuities (Para 26)
Rating: E: 5:✓ U: N/A: Employee Handbook (Para 26)
Comments: The consultant has confirmed that CR&R continuously maintains their
employee policy, and is therefore found in compliance.
In February 2017, CR&R agreed to replace their representative to CMSD, after CMSD
made such request. The new CR&R Representative is very cooperative and responds to
CMSD's inquiries in a timely manner.
7. Recommendation: Would you recommend this contractor for future contracts?
Yes- /,No_. If no, please fully explain.
Name of Evaluator: Nabila Guzman Phone Number: (949) 645-8400 ext. 230
Title of Evaluator: Management Analyst I
Signature: AAb _Aelyrlh U'L Date: 1113011-+
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PART Il-EVALUATION OF CONTRACTOR'S PERFORMANCE
CONTRACTOR'S Review.
I have reviewed the performance evaluation of CR&R under the July 20, 2006 3
Agreement. I do concur ✓ I do NOT concur with it. The attached comments
consisting of / number of pages are returned herewith for review by an individual at a
level above the contract management officer responsible for this contract.
Name of Authorized Reviewer: ear. Rk 61e Phone Number: °0-1(1.911-•crZ4Y
Title of Reviewer: San:of J te et, ds..r
Signature: �i�-, /' ' Date: 12-s-20,1
PART III-EVALUATION OF CONTRACTOR'S PERFORMANCE
DISTRICT Review of CONTRACTOR'S Comments.
I have considered the comments submitted on the performance evaluation of CR&R
under the July 20, 2006 Agreement. The attachment to this form, consisting of
number of pages,is my final decision on this evaluation.
Name of Reviewer: Phone Number:
Title of Reviewer:
Signature: Date:
II
11292 Western Avenue CR&R
Stanton,California 90680
Cell#949.412.8244 Waste and Recycling Services
Office:877.728.0446 fax:714.890.6347
Memo
To: CMSD Performance Review 2016-17
From: Dean A. Ruffridge
Date: December 4,2017
Re: Performance Review 2016-17
Regarding to the Unsatisfactory Rating for the complaint reports:
Although this is not the first time that staff has commented on the reporting of"complaint"issues in our
annual performance reviews, our Agreement does not specifically define what constitutes a"complaint";
only that CR&R shall provide a log of complaints received each month.
Below is our internal procedure for determining which calls will be documented as complaints, and how
we manage claims of missed pick-ups.
"Complaint"notes for our entire contract municipality base are only added to an account in instances
where the customer has called multiple times for the same issue,they are extremely agitated, they
request to escalate to a supervisor, or they state that they will contact the City/District. We do not
consider reports of missed pick-ups to be complaints, and as such, they are not noted in the complaint
log.This may be the difference between how CMSD staff reports and how CR&R reports.
When a customer or the CMSD call to CR&R concerning a missed pickup, rather than note the
account, a work order for return service is created. Reports of missed pick-ups are recorded in our
system as either a missed(driver at fault)or courtesy(driver not at fault)pick-up work order.
CR&R firmly believes we are complying with the contractual language. Should the Board wish
otherwise,we will consider a contract change in negotiating with your staff.
A Higher Standard of Responsibility