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Costa Mesa Sanitary District (CMSD)
Yearly Performance Review of
CR&R, Environmental Services
CR & R
INCORPOR A TED
environmental services
October 18, 2016
Prepared by Elizabeth Pham, Management Analyst II
YEARLY PERFORMANCE REVIEW OF CR&R. INCORPORATED
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(Per Section 40 of the Aereementl
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 1.2015—June 30. 2016
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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)
✓
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 was $17.13 which is
below ($0.62 per unit less) the required County average of $16.14 plus 10% (17.75
maximum rate allowed). The average excludes Laguna Woods (per Agreement) and
Newport Beach (the City). CR&R now provides trash services for Newport Beach and the
City is charged a flat rate of$312,130 per month. Based on the data provided by the City
from the RFP used to bid for trash residential services, the average full-time occupancy
in Newport Beach is 16,894 households of the 22,525 total (occupancy figure used to
calculate original rates for franchise). The consultant equates the net-to-hauler rate to
be $18.48 which is above the County average. There is also a $3.00 per household
recycling fee that is billed and retained by the City. 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: As the new organics recycling program was being implemented, District
staff received 42 missed organics pick-ups from June 2015 to August 2015. Since then,
the number of missed organics pick-ups has significantly reduced. However, many
residents requested exemptions as a result of the delays. CR&R maintains a complaint
log and is very responsive with contacting customers and scheduling pick-ups.
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
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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:r/ S: U: N/A: Corporate Structure Changes Communicated (Articles,
Bylaws, stock register/ownership,Statements)(Para 5)
Rating: E:✓ S: U: N/A: Timely Weight Ticket Submittals(Para 16)
Rating: E:r/ S: U: N/A: Contractor shall record and provide a log of complaints on a
monthly basis(Para 22)
Rating: E: 5:✓ U: N/A: Information Cards(Para 25)
Rating: E: S: U: N/A: Transfer Station and/or AD Service(Para 27)
Rating: E:r/ S: U: N/A: Annual Facility Tours Provided (Para 32A)
Rating: E: 5:r/ U: N/A: Annual Seminar Conducted (Para 32B)
Rating: E: 5:r/ U: N/A: Biennial Brochure Mail out (Para 32C)
Rating: E:r/ S: U: N/A: Est. $10,000 Public Edu. Fund (Para 32D)
Rating: E: S: U: N/A: Provided $500 Recycling Cash Donation (Para 32E)
Rating: E:r/ S: U: N/A: Annual$10,000.00 Cash or Services(Para 32F)
Rating: E: 5: U: N/A: Full Expenditure by end of FY(Para 321)
Rating: E: 5:1 U: N/A: Annual Audited Financial Statements Provided with Audit
Trails and All Recycled Materials Revenue(Para 34)
Rating: E: 1 S: U: N/A: $5,000 Anti-Scavenging Provided (Para 36)
Rating: E: S:r/ U: N/A: Master Manifest Availability(Para 37)
Rating: E: S:r/ U: N/A: Master Manifest Delivered Upon Request (Para 37)
Rating: E: S:r/ U: N/A: Tonnage Documentation by Truck Identification Number,
Route and Date Electronically on the First Day of Each Month
(Para 37)
Rating: E: S:1 U: N/A: Master Manifest Completeness(Para 37)
Rating: E:Y S: U: N/A: Annual Performance Review Participation (Para 40)
Rating: E:1 S: U: N/A: DISTRICT Indemnification/Defense/Hold Harmless(Para 42)
Rating: E:r/ 5: U: N/A: $50,000 Performance Bond Maintained (Para 44)
Rating: E:r/ S: U: N/A: $5,000,000 Public Liability Policy(Para 45)
Rating: E: 1 S: U: N/A: Worker's Compensation Insurance Maintained (Para 46)
Rating: E:r/ S: U: N/A: Federal,State and Local Law Compliance (Para 47)
Rating: E:r/ S: U: N/A: Appropriate Licenses and Permits Maintained (Para 48)
Rating: E:r/ S: U: N/A: Employment/Non-Discrimination (Para 49)
Rating: E:1 S: U: N/A: Drug Awareness Program Established and Maintained (Para
50)
Rating: E: 5: 1 U: N/A: 40%or Greater Stock Assignment(Para 51)
Rating: E:r/ S: U: N/A: Corporate Structure Changes Communicated (articles, bylaws,
stock register/ownership,statements)(Para 5)
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Comments: CR&R maintains excellent correspondence, attending every District Study
Session and Board meetingand responds to emails in a timelymanner.
P
CR&R promptly sends District staff month-end reports (weight tickets, occupancy
reports, HHW work orders and complaint log)for processing.The occupancy reports had
some minor errors (repeat accounts), which District staff and CR&R staff discussed
collaboratively on how to reconcile accounts. District staff received April-June 2016
invoices with the incorrect organics rate for the organics curbside collection, in which
the District was charged $72.50 per ton. However, because the AD facility was not yet
operational, the rate should have been $51.97 per ton. The Agreement also states, "On
the effective implementation date mutually agreed upon by both parties for the
implementation of the Organics Recycling Program [July of 2016], the rate for District
organic material delivered to [CR&R's] AD facility will be $71.50 per ton."CR&R was able
to correct and credit the District back for calculation errors.
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: 5:✓ U: N/A: Christmas Tree Collection (Para 15B)
Rating: E:✓ S: U: N/A: Holiday Collections(Para 10)
Rating: E:✓ S: U: N/A: Special/Humanitarian Requests (Para 15C)
Rating: E: 5:✓ U: N/A: Residue/Flow Control (Para 29)
Rating: E:✓ S: U: N/A: Site Access to DISTRICT(Para 38)
Rating: E:✓ S: U: N/A: Plant Tours On Request(Para 39)
Rating: E:✓ 5: U: N/A: DISTRICT Audit Rights Honored (Para41)
Comments: CR&R is extremely reasonable and responsive with District's needs; they
have accommodated District staff on numerous occasions. On February 13, 2015, CR&R
provided District Board of Directors and staff with an on-site tour of the anaerobic
digestion (AD) facility in Perris, CA. On March 17, 2015, CR&R provided District new
employees with an on-site tour of the MRF facility in Stanton, CA.
For the Christmas tree collections, District staff received numerous complaints in 2015.
The consultant reviewed CR&R's complaint log and found that calls have dropped by
76% in 2015 (46 in 2015 & 60 in 2014) from the previous year but does not include
complaints received from the District's app. CR&R has recommended establishing a set
start date for pick-ups annually, beginning on December 26. However, District staff has
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stated that many residents do not dispose of their Christmas tree immediately after
Christmas and have requested the start date to begin later. It is important to note that
for the 2015 Christmas tree collection, the delays were caused by unsafe weather
conditions and not "start date confusion"as stated in the review.
CR&R continues to support the District with public outreach at community events, such
as the Community Run and Fish Fry. On April 23, 2016, CR&R provided the bale of cans
for the "Count the Cans" contest. CR&R also provided organic trash waste bins, signage
and collection for the Fish Fry. In addition, CR&R has provided District staff with
informational brochures and flyers to distribute at events.
5. Contract Compliance with Operational Requirements.
Rating: E S V.0 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:V U: N/A: Overall Quality of Service:
Rating: E: S:Y U: N/A: Prompt Weekly Collection (Para 7)
Rating: E: S:✓ U: N/A: Contractor Equipment/Identification
List/Environmentally Friendly Fuel Program (Para
12)
Rating: E: 5:✓ U: N/A: Vehicle Waste Leak Prevention (Para 12)
Rating: E: S:Y U: N/A: Vehicle Waste Leak Clean-Up(Para 12)
Rating: E: S:1 U: N/A: Accumulated Trash Reported (Para 14)
Rating: E: S: U: N/A: Vehicle Cleanliness(Para 12)
Rating: E: 5:✓ 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: 5:1 U: N/A: Customer Change out Requests
Rating: E: S:✓ U: N/A: Accuracy,Thoroughness and Timeliness
Rating: E: S:/ U: N/A: Adherence to Approved Schedules(Paras 7,8, 9,
10)
Rating: E: 5:Y U: N/A: Resolution of Delays(Para 10)
Rating: E: 5:V U: N/A: Notice of Labor Disputes/Resolutions(Para 10D)
Rating: E: 5:✓ U: N/A: Provide and Maintain the Containers (Para 11B)
Rating: E: S:1 U: N/A: 8AM-5PM Office Hours(Para 21)
Rating: E:V' S: U: N/A: After Hours Voice-mail/Replies(Para 21)
Rating: E: 5:1 U: N/A: Monthly Complaint Log Delivery(Reports,
Complaints and Pleadings)(Para22)
Rating: E: S:✓ U: N/A: AB939 Compliance (Para 27)
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Rating: E: S:✓ U: N/A: AB939 Education Program Provided (Para 32, 6)
Rating: E: 5:✓ U: N/A: Controllable Waste Delivered to MRF (Para 28)
Rating: E: S:✓ U: N/A: Waste Diversion (Para 30)
Rating: E: S:✓ U: N/A: Residue Sent to Designated Disposal Facility
(Para 28)
Rating: E:✓ S: U: N/A: 50%Diversion Rate Met(Para 30)
Rating: E: 5:✓ U: N/A: Maintained Graffiti-Free Containers(Para 36)
Rating: E: 5:✓ U: N/A: Master Manifest(Para 37)
Comments: The organics program began on June 22, 2015 and was fully implemented
by August 14, 2015. Prior to program implementation, green waste was used as an
alternative daily cover (ADC). For 2015, the recycling reports submitted by CR&R report
that 10,076 tons of green waste went as ADC. It is important to note that the 10,076
tons are estimates based upon composition review and the 10,651 tonnage that
CalRecycle reports is the actual tonnage. The discrepancy shows that the estimated
numbers are relatively accurate. Despite program implementation, the AD facility was
not operational until September of 2016. Therefore, the organics collected from
curbside collections were sent to two facilities (American Organics & Lakeview
Composting Facility) for composting during the audit period. Tonnage records indicate
that 7,451.95 tons from the District franchise were diverted by these facilities.
The consultant reviewed the State Disposal Reporting System (DRS) which showed
18,906 tons of green waste being used for ADC during the calendar year of 2015. Thus,
CR&R's 10,651 tons of ADC and 7,451 tons of organics to compost in the audit period
are supported by historical data. The Master Manifest substantiates a 57.69% diversion
rate for the audit period; therefore CR&R has met the required 50% diversion rate as
requested in the Agreement.
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: 5: 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:
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The consultant has confirmed that CR&R continuously maintains their employee policy,
and is therefore found in compliance.
7. Recommendation: Would you recommend this contractor for future contracts?
Yes_ / No_. If no, please fully explain.
Name of Evaluator: Elizabeth Pham Phone Number: (949)645-8400 ext. 230
Title of Evaluator:Management Analyst!!
Signature: ,Q Irk_
Date: 1°1°5-/1G
PART II -EVALUATION OF CONTRACTOR'S PERFORMANCE
CONTRACTOR'S Review.
I have reviewed the performance evaluation of CR&R under the July 20, 2006
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: 1_\ec,n1 eK-1v';cl y_ Phone Number: CO-14 LI,Z.1 9Y
Title of Reviewer: Sa r.i v r \1 i c,c Pees Ideht
Signature: Date:
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: MITE SettEhprie. Phone Number: X149 (45WOO
Title of Reviewer: prfr-.S1 1
Signature: , /� Date: /('/do/ad ca
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