Yearly Performance Review - CR&R - 2019-12-10A t�tq
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12_019_1
Costa Mesa Sanitary District (CMSD)
Annual Performance Review of
CR&R, Incorporated
CR R
1 W C 0 R P O R A T E
environmental services
the face of a greener generation
December 10, 2019
Prepared by Nabila Guzman, Management Analyst I
ANNUAL PERFORMANCE REVIEW OF CR&R, INCORPORATED
1
(Per Section 4.6 of the Agreement)
Per Section 4.6 of the Agreement, the "DISTRICT shall complete a performance review of
the trash collection and recycling program on an annual basis and HAULER and DISTRICT
shall meet to discuss or resolve problems that may be occurring in the programs.
DISTRICT shall prepare a performance form that allows for evaluation of services
provided at the residences as well as administrative services including report
preparation, accuracy, timeliness of transmittal, responsiveness to inquiries, database
management, service levels and helpfulness."
Contract Award Date: July 1, 2018
Service Description: HAULER agrees to furnish 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 (including the entirety if the City of Costa Mesa and certain residences within
the City of Newport Beach) as said boundaries now exist or may hereinafter exist, and
the disposal of such Solid Waste. HAULER agrees to provide containers for all single-
family and small multi -family dwellings inside DISTRICT. HAULER agrees to provide
material recovery facility 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, Incorporated
11292 Western Avenue
Stanton, CA 90680
714-826-9049
Evaluation Term: July 1, 2018 — June 30, 2019
2
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.
3-
1. Services To Be Provided and Term — Article 2
Rating:
E:
S: v'
U:
N/A:
Services to be Performed (2.1)
Rating:
E:
S: V/
U:
N/A:
Ownership of Solid Waste (2.3.1)
Rating:
E:
S: V"
U:
N/A:
Solid Waste Disposal (2.3.2)
Rating:
E:
S: v'
U:
N/A:
Residue/Flow Control (2.3.3)
Comments: CR&R has furnished all labor to collect, transport, recycle and dispose of
solid waste collected. Trash containers have been provided and exchanged without a
delay which is an improvement from last year when residents experienced up to a
three-week delay. Monthly reports provided and the audit consultant have confirmed
that all material collected from CMSD service area is going to CR&R's MRF and
Anaerobic Digestion Facility as outlined in the contract.
2. Hauler Comoensation — Article 3
Rating:
E:
S: , /
U:
N/A:
Hauler Compensation (3.1)
Rating:
E:
S: e"
U:
N/A:
Justification of Rates (3.2)
Rating:
E:
S: ve,
U:
N/A:
Most Favorable Rate (3.3)
Rating:
E:
S: V"
U:
N/A:
Consumer Price Index Adjustments (3.4)
Rating:
E:
S:
U:
N/A:
Landfill Charges (3.5)
Comments: CR&R and CMSD completed a multi -year occupancy reconciliation project at
the end of fiscal year 2018-2019. Over the two years it took to complete the project,
CR&R staff assisting with the occupancy reconciliation process was great to work with.
They were diligent about their work and getting back to District staff with notes,
questions and progress made.
CR&R performed and submitted the required annual review of rates for thirty-three
Orange County cities. The survey excludes the City of Laguna Woods, which is a 100%
senior -citizen community. The District's goal is to maintain a net -to -hauler rate that
does not exceed ten percent of the County average (added costs for AD Facility are not
included). The standard per -unit net -to -hauler payment for the review period is $18.60
which is $1.11 below the county average. The County of Orange, net -to -hauler average
for all jurisdictions is $17.92 plus 10% that the agreement allows ($17.92 + $1.79 =
$19.71) is the maximum amount that CR&R could receive and remain in compliance.
The review of thirty-three Orange County cities has confirmed that CMSD continues to
have the lowest AD Facility per ton rate; currently, there are five other OC cities that
utilize the AD facility. CR&R is in compliance with this part of the contract
CR&R submitted their first CPI increase request of 5.8% to all of their rates in March
2019. An audit of their profit margin was completed by the District's Treasurer and the
rate increase was awarded by the Board of Directors in June 2019. The rate adjustment
was implemented on July 1, 2019. Section 3.5 of the contract was not applicable during
the review period.
.49
3. Records. Reports. Reviews and Audits — Article 4
Rating:
E:
S: ✓
U:
N/A:
Monthly Reports (4.1)
Rating:
E:
S: v",
U:
N/A:
Waste Diversion (4.2)
Rating:
E:
S:
U:
N/A: v
Audit of Hauler (4.3)
Rating:
E:
S:
U:
N/A:
Master Manifests (4.4)
Rating:
E:
S: v�`'
U:
N/A:
Access to Site (4.5)
Rating:
E:
S: v°'
U:
N/A:
Annual Performance Review (4.6)
Rating:
E:
S: ✓
U:
N/A:
Audit Rights (4.7)
Rating:
E:
S: v''
U:
N/A:
Corporate Structure (4.8)
Comments:
CR&R promptly sends District staff month -end reports (weight tickets, occupancy
reports, HHW work orders, and complaint log) for processing. On multiple occasions,
CR&R staff accommodates CMSD's request to receive the monthly reports within 3-4
days instead of the seven days written in the contract. An improvement was made from
the last two fiscal years with monthly invoices. Weight tickets are checked against
invoices for accuracy and they always check out, but invoice totals were consistently off
by a few cents during FY 16-17. In FY 17-18, the difference in amount totals were several
dollars each month for a total of $625.55 being under billed. During this review period,
CR&R corrected its billing software but since the issue was corrected in November 2018,
CMSD was overbilled $1.78 over 7 months.
CR&R's monthly reports and the master manifest provide exceed requirements for
waste diversion. The audit consultant found that the monthly reports show significantly
different recycled material composition. When the master manifest was being prepared,
CR&R staff informed CMSD that per contract language the master manifest for FY 18-19
would only include CMSD materials since that is what the contract specifies. Due to this
change, CMSD instructed the audit consultant to also perform a waste characterization
study to determine if the high percentage of green waste in the master manifest
provided was reasonable. CMSD has received the results of this study, which confirm
that the high percentage of green waste recycling is possible. CMSD is requesting that a
new waste characterization study is performed to establish more accurate monthly
reporting figures.
CMSD did not exercise its right to review CR&R's annual financial report for services
performed under this agreement. CMSD instructed the audit consultant to conduct
vehicle inspections of CR&R's fleet due to a high number of complaints received during
the review period for spills and leaks. CR&R has been cooperative and accommodating
with all reviews and audits requested by CMSD.
4. Operations — Article 5
Rating:
E:
S: ✓
U:
N/A:
Containers (5.1)
Rating:
E:
S:
U:
N/A:
Additional Container Charges (5.2)
5
Rating:
E:
S: ,f`
U:
N/A:
Hauler's Equipment (5.3)
Rating:
E:
S: ✓
U:
N/A:
Limitations on Solid Waste Collection (5.4)
Rating:
E:
S:
U:
N/A: V'
Trash Accumulation (5.5)
Rating:
E:
$: Vol'
U:
N/A:
Operations Manager (5.6)
Rating:
E:
S: ✓
U:
N/A:
Contract Liaison (5.7)
Rating:
E:.r'
S:
U:
N/A:
Customer Service Designee (5.8)
Rating:
E:
S: V
U:
N/A:
Office Hours (5.9)
Rating:
E:
S:
U:
N/A:
Information Cards (5.10)
Rating:
E:
S:
U:
N/A:
Driver Conduct/Uniforms (5.11)
Rating:
E:
S: ✓
U:
N/A:
Employment /Non -Discrimination (5.12)
Rating:
E:
S: ✓
U:
N/A:
Drug -Free Workplace (5.13)
Rating:
E:
S: V
U:
N/A:
Liaison (5.14)
Comments:
CR&R continues to provide and maintain all containers for CMSD residents. Delivery and
replacement of carts were completed within one week of the requests being made.
CMSD has received 80% of the revenue collected from the third container charge; CR&R
continues to refund this amount on a quarterly basis. During the review period, CMSD
did not exercise its right to audit the listing of residents who own any third carts.
During the review period, there was an increase in leak and spill complaints from
CR&R's fleet. Thirty-eight complaints were received through phone and email and an
additional fifteen complaints were received through the Districts GovOutreach online
and mobile application system. Due to the unusual spike in complaints, CMSD requested
the contract auditor to inspect CR&R's fleet and maintenance logs. The inspection
focused on the four trash trucks that experienced the issues. Each truck experienced
different issues but the auditor's inspection confirmed that all vehicles that received
complaints related to the leaks have been repaired. A majority of the complaints
happened over a few consecutive weeks and CR&R did promptly send out a cleaning
crew to correct the mistake.
As in years past, CR&R continues to switch out truck signs at the request of CMSD to
promote District programs. During the review period, three signs were requested,
Christmas tree recycling, 75th anniversary and Sewer Inspection Rebate Program.
No reports of trash accumulation were reported during the review period.
The Districts assigned Operations Manager, Juan Vallejo, is always available to answer
District questions or concerns and does strive to make customer satisfaction his number
one priority. On multiple occasions, Mr. Vallejo has stepped in to assist in difficult
situations and maintains great correspondence with District staff.
The contract liaison assigned to CMSD, Pars Parikh, has worked hard to continue to
familiarize himself with District programs and contract but improvements can be made
2
in communication with the District. During the review period, a trash truck caught on
fire and he did not relay the message to district staff. Feedback has been provided to
the Sustainability Specialist on areas of improvement.
The year in review is the first time the District has had a "Customer Service Designee"
and he has been amazing. This CR&R staff member was appointed in lieu of CMSD
having access to trash truck GPS information and the designee is to reply to CMSD
within two hours when a missed pickup is reported. Erik Hernandez, the appointed
designee consistently goes above and beyond to accommodate requests or assistance
to CMSD. The year in review is also the first full year that CR&R utilizes CMSD's
GovOutreach program. The system is used to track and communicate requests that
come in regarding missed pickups, cart exchanges, HHW or large item pickups between
CMSD staff, CR&R and the resident directly. Erik Hernandez and Monica Portan are the
two CR&R employees who have access to these requests and they are always willing to
help and maintain good communication regarding the status of each request.
Information Cards are given out by CR&R and it allows them to keep track of violations
and keep records of individual homes that experience issues. The list of information
cards is only provided at the end of each fiscal year but CR&R does not communicate
issues that they experience with any homes throughout the year. During the year in
review, 153 accounts were tagged and 216 tags were left behind. After carefully
reviewing the list, CMSD would like to see more communication from CR&R on accounts
that repeatedly experience problems because CMSD can step in and try to correct the
problem by education the resident on proper placement of trash, construction material
found, organic cart too contaminated, etc. CMSD on multiple occasions has asked how
CMSD can help and what issues are the drivers experiencing and these issues are not
shared.
The contract auditor has confirmed that CR&R continuously maintains its employee
policy, and is therefore found in compliance.
S. Insurance, Bonds and Indemnifications — Article 6
Rating:
E:
S: V
U:
N/A:
Indemnification of District (6.1)
Rating:
E:
S: ✓
U:
N/A:
CERCLA (6.2)
Rating:
E:
S: ✓
U:
N/A:
Bond (6.3)
Rating:
E:
S: v
U:
N/A:
Public Liability and Property Damage
Insurance (6.4)
Rating:
E:
S: ✓
U:
N/A:
Worker's Compensation Insurance (6.5)
Comments:
The spills and leaks that occurred during the review period happened inside various
homeowner associations. These residents were upset by the leaks and not satisfied with
CR&R's cleaning efforts that they wanted to sue CMSD and CR&R. Per the language in
7
the contract, CR&R did indemnify CMSD and worked directly with the HOA to correct
the issue. Additionally, all proof of insurance is provided in a timely manner.
6. Default and Damages — Article 7
Rating:
E:
S:
U:
N/A:
Default (7.1)
Rating:
E:
S:
U:
N/A:
Franchise Alternative (7.2)
Comments: N/A
7. Collection Schedule — Article 8
Rating:
E:
S: ✓
U:
N/A:
Frequency of collection (8.1)
Rating:
E:
S:
U:
N/A:
Schedule of Collections (8.2)
Rating:
E:
S: ✓
U:
N/A:
Days/Hours of Collection (8.3)
Rating:
I E:
S: v
U:
N/A:
Disruption of Schedule (8.4)
Comments:
During the year in review, a total of 270 missed curbside pickup complaints were
received through Govoutreach, which is an increase from the 122 received in FY 17-18.
Staff is concerned about the increasing number of missed collections, specifically when
it comes to organic cart missed pickups. Residents are more upset when the organics
cart is missed because it smells and is of greater health concern to them. On occasions
when the cart is missed multiple times in a row or throughout the year, the residents
request the organic cart be removed from their property. When CMSD staff inquires as
to why so many homes and streets were missed during this review period, CR&R
notified CMSD that trucks would break down and drivers were unable to complete their
routes, this happened one too many times during FY 18-19. Per the agreement, the
General Manager may change the existing routes, schedules or time of collection which
was not exercised during this review period. Instead, CMSD would like to request that
route efficiency is examined by both parties to see if adding more routes would be of
value or if any trucks need to be replaced to avoid the increasing number of missed
pickups. Additionally, concerns have been raised by residents that trucks are out
collecting trash too late in the evening. CMSD is interested to see if adding more
trucks/routes will alleviate the late collection hours.
8. Special Programs — Article 9
Rating:
E:
S: Vol
U:
N/A:
Christmas Tree Collection (9.1.1)
Rating:
E:
S: v'
U:
N/A:
Excess Boxes & Household Furnishings (9.1.2)
Rating:
E:
S: ✓
U:
N/A:
Large Item Pickup (9.1.3)
Rating:
E:
S: a'
U:
N/A:
Alkaline Battery Recycling Program (9.1.4)
Rating:
E:
S: V
U:
N/A:
Household Hazardous Waste Program (9.1.5)
Rating:
E:
S: V
U:
N/A:
Annual Compost Event (9.1.6)
[Rating:
E:
S: v'`
U:
N/A:
Roll -out Service for Seniors/ADA Residents (9.1.7)
H
Rating:
E:
S:
U:
N/A:
Valet Service (9.1.8)
Rating:
E:
S:
U:
N/A:
Education Programs (9.2)
Rating:
E:
S:
U:
N/A:
Community Outreach Programs (9.3)
Rating:
E:
S: V/
U:
N/A:
Tours of the Site (9.4)
Comments:
Per the agreement the Christmas Tree Collection program ran for approximately three
weeks following Christmas Day 2018 with fewer missed pickup complaints than in years
past. There has been a steady improvement in this program over the last two years.
CMSD did make the request on three occasions to remove abandoned furniture from
neighborhoods that have a mixture of single-family homes and multifamily homes. The
furniture was an eyesore to CMSD customers and CR&R quickly arranged to get it
removed.
The large item pickup program continues to be the District's most popular program. The
program did experience some delays at the end of summer, where residents had to wait
over two weeks to schedule a pickup but that was due to the popularity of the program
and parents cleaning out their homes before school starts.
This was the first year of the door-to-door household hazardous waste program being
available to all CMSD solid waste customers. There were no problems reported when
scheduling or completing pickups. Additionally, it was the first time the District and
CR&R held the compost giveaway and it went great. CR&R was easy to work and
coordinate with, they attended pre -event meetings accordingly and responded
diligently to requests made. CR&R also provided additional staffing for the event to help
load the compost bags onto cars.
The roll -out service for Seniors and ADA residents works great, the only complaints
received are when the normal driver is out on vacation, the relief driver is not aware
that the cart is to be rolled out so they missed their trash day. This is typically corrected
the same day or the following morning by operations. Per the agreement, able-bodied
residents are able to sign up for cart valet service. The cost is $40 a month to service up
to three carts on their trash day; no residents have signed up yet for this service.
CR&R continued to be accommodating and provided tours of their Stanton and Perris
facilities for the District's Citizens Environmental Protection Academy. Additionally,
CR&R developed an updated residential guide that was tailored to CMSD programs and
services. This guide was mailed out in the summer of 2019. The residential guide was an
improvement from versions in previous years and it was provided in a bilingual format.
Per the agreement, the District's assigned Sustainability Specialist would dedicate
approximately 20 hours a week promoting solid waste diversion programs in CMSD.
E
After auditing the time for the year in review, CMSD has determined that CR&R is not in
compliance with this section of the contract. Time logs were provided for the entire
year, but CMSD has found that most of the time is spent doing administrative work for
CMSD such a report gathering, attending study sessions, answering emails and phone
calls. In January 2019, the Sustainability Specialist did begin a "Welcome to the
Neighborhood" program where he would contact new residents over the phone and
then schedule a visit where he could introduce the kitchen pail and elaborate on District
programs. 112 homes were visited during FY 18-19 but the number of new services on a
monthly basis has significantly decreased so CMSD does not foresee this many homes
being visited in the future. Per the logs provided, the Sustainability Specialist is
averaging about 18 hours a week in CMSD, but there were only two projects that met
the criteria of this section for the year in review. These projects were, Welcome to the
Neighborhood and re -designing the residential guide. There were entire months during
the review period that no time was spent promoting solid waste diversion programs.
Currently, the Sustainability Specialist is assigned to two cities, in order for CR&R to be
in compliance going forward, the Specialist would need to only focus on CMSD or in lieu
of 20 hours a week, CR&R should contribute towards a contractor to assist CMSD with
promotion.of programs.
The cart -to -cart outreach program is another big part of "Community Outreach
Programs" section where CR&R can make an improvement. This program was
introduced and proposed by CR&R during contract negotiations but CMSD staff found
this program to be the most difficult to try to implement. Over the course of FY 18-19,
CMSD staff repeatedly asked CR&R when the program would start and wanted more
information on how the program was going to work. At first CMSD was told a consultant
would perform the outreach but would not provide contact information for said
consultant, then after much back and forth it was decided that the Sustainability
Specialist would do it but not to the degree that the program was promised during
negotiations. Most of the year in review was spent trying to get information and CR&R
not providing concrete answers as to why the program was taking too long to
implement. The program has begun to take shape in FY 19-20 but it will be rolled out on
a smaller scale than it was promised during negotiations.
9. Miscellaneous —Article 10
Rating:
E:
S:
U:
N/A:
Non -Assignability (10.1)
Rating:
E:
S:
U:
N/A:
Venue (10.2)
Rating:
E:
S: V
U:
N/A:
Compliance with all Laws (10.3)
Rating:
E:
S: v�`
U:
N/A:
License and Permits (10.4)
Rating:
E:
S:
U:
N/A:
Severability (10.5)
Rating:
E:
S:
U:
N/A:
Integration (10.6)
10
Comments: N/A
10. 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: %( ; 2 r_L`L�L't Date: I2 ��j- l �j
PART II -EVALUATION OF CONTRACTOR'S PERFORMANCE
CONTRACTOR'S Review.
I have reviewed the performance evaluation of CR&R, Incorporated under the July 1,
2018 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:'b¢QA Phone Number: cILA j -L) j
Title of Reviewer: SQ,r, %d,(t_ 11► Lp&i 4te- -
Signature: Date: Z DJa1
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,
Incorporated under the July 1, 2018 Agreement. The attachment to this form, consisting
of number of pages, is my final decision on this evaluation.
Name of Reviewer:
Title of Reviewer:
Signature:
Phone Number:
Date:
11