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Agenda Packets - Board - 2003-09-29� rah � 6 �� o000 Me 0) tar District 4 ���o��o�� ° ... an Inbepenbei nt Special District Board of Directors Arlene Schafer Greg Woodside James Ferryman Art Perry Dan Worthington Staff Robin B. Hamers Manager District Engineer (949) 631 -1731 Thomas A. Fauth Assistant Manager (714) 754 -5043 Joan Revak Clerk of the District (714) 754 -5087 Fax (714) 432 -1436 Mailing Address P. O. Box 1200 Costa Mesa, CA 92628 -1200 Street Address 77 Fair Drive Costa Mesa, CA 92626 -6520 Printed on Recycled Paper NOTICE OF SPECIAL MEETING COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS SEPTEMBER 29, 2003 The Board of Directors of the Costa Mesa Sanitary District will meet on J Monday, September 29, 2003 at 6:00 p.m., in Conference Room 1A at the Costa Mesa Civic Center, 77 Fair Drive, Costa Mesa, California to discuss the following: I. Standardized Trash. Container Program I Costa Mesa Disposal. Franchise Performance Review pgFEA Ii1. Reconsideration of Changes to `l'rosh Collection Regulations PLAce ON Nora /vow . I V. Public Comments C v�F cros-io cf.-+Q /344Z00,09. , mm /NLY, Dated: September. 23, 2003 'a, C�-� " Clerk of the District Protecting our communitN's 6ealt6 6� provibing SoliO waste antb sewer collection services. costa mesasani tar v bistrict.org CR &R nsrsourrrm September 15, 2003 Mr. Robin B. Hamers Manager/District Engineer Costa Mesa Sanitary District PO Box 1200 Costa Mesa, CA 92628 -1200 Re: Special Meeting — September 29, 2003 Dear Mr. Hamers: 11292 WESTERN AVE. P.O. BOX 125 STANTON, CA 90680 714- 826 -9049 In response to your letter and our discussion on September 2 "d, I have prepared the following to address the questions in your memorandum and advise the Costa Mesa Sanitary District (CMSD) that CR &R will be purchasing 50% of Costa Mesa Disposal" and assume the management of the day -to -day operations. Based on the legal opinion from the District's council that the contract does not require Board approval for the sale of 50% of the stock from Costa Mesa Disposal to CR &R, we are preparing the documents to finalize our purchase, which should be complete in the next 90 days. In regards to the items listed in your memorandum, please review the following responses. • Attached you will find a Statement of Qualifications for CR &R, as well as a Governmental Client List and Corporate Brochure. r • CR &R manages over 25 municipal contracts and services approximately 200,000 residential units each week for refuse, recyclable and green waste collection. In almost all cases, the residential collection is provided by an..,"-, automated cart and serviced with. an automated truck. We believe our 1 extensive experience in this area will ensure that the residents of the District (_S'MAr70N L#4$ are serviced effectively and on time. We recognize that it is our responsibility to provide exceptional customer service and minimize any complaints that are currently being experienced. • At the completion of the stock purchase by CR &R, we are proposing to move the collection operation from Costa Mesa to our facility in Stanton. This change of location will allow us to manage this company with our existing management team and customer service staff. This will enable us to have better operation controls, which will include computerized route sheets, driver logs, and field supervision. These changes will ensure that we meet our goal of reducing the customer complaints to near zero. * RECYCLED PAPER ti t • CR &R accepts the terms of the existing contract, which includes the special programs listed in your memorandum. We are prepared to continue these programs, as well as offering suggestions on how we may improve them. • CR &R is aware that there is a Purchase Agreement between Roto Industries and Costa Mesa Disposal that provides for the maintenance of the automated carts currently distributed in the District. CR &R would like an opportunity to discuss this obligation further with the District and be provided time to recommend a potential resolution that is satisfactory to both parties. • CR &R anticipates that the purchase of 50% of the Stock will be completed within 90 days. At that time, CR &R will have full disclosure of the financial performance of the company over the past few years and will begin an evaluation of the current rate structure. At the completion of this review, CR &R will be in a better position to advise the District of the financial TE CGNZ*Tw position of the Company, and if there is a need for a rate adjustment. In the £fir 9 (mom• interim, CR &R will honor the existing rate and would like to request that the 6� District research what has caused an increase of over 3,500 tons per year of waste being generated and collected by Costa Mesa Disposal. This research will play a role in the evaluation of the financial condition of the Company. Again, CR &R is prepared to honor the existing rate until such time that the research of the 3,500 tons and our evaluation of the company is complete. • CR &R will work with the drivers to assist them in safety techniques to handle the carts until such time that the District can be fully automated. Just the C6W. Y- G MM knowledge by the drivers that their concerns of the carts being placed on the curb are being addressed will result in better productivity. In addition, CR &R has already met with the drivers and the Union to discuss their areas of concern and has assured them that we are working towards a solution. At that meeting, we requested and received concurrence from the drivers that they ��J will service the carts and ensure that the trash is picked up in an efficient . %/VG. manner. In cases were this does not occur, we will provid corrective action for drivers that do not follow the service requirements esta is e o ensure that the customers are serviced properly. • As you know, CR &R has a Favored Nations clause in its contract between CRT and the District. CR &R would be willing to discuss this concept as it relates to the rate for trash collection in our upcoming financial discussion. i t i • CR &R is an advocate of fully automated programs as you can see from the number of homes we service with a fully automated system. CR &R would recommend that the District move towards full automation as soon as possible in order to eliminate most of the collection and cart placement problems you are facing today. With that recommendation, CR &R would like to advise the District of the need to move the carts into the street to allow for efficient collection. In all cases where we collect with an automated truck, the carts are placed in the street on collection day. We hope that this information addresses the items listed in your memorandum, as well as provides the members of the District with an opportunity to develop questions for the meeting on September 29, 2003. We look forward to our meeting with the District and the opportunity to discuss these items in depth. Please feel free to contact me with any question or concerns. Sincer , avid ahrion President Solid Waste Division cc: Mr. Raul Rangel, Costa Mesa Disposal . ARif Oh r • dto-wF " AV413Lg P 4- f &w&Q C,o?Vf � ��sFc. �r�arcui.9P£ t�P.r .2 v>LMov ICNP- � CmItr C/nQ Aoqt # ON UQ ceG05-Y %J . IN h CM40 Statement of Qualifications CR &R, including its wholly owned subsidiary, Solag Incorporated, provides solid waste collection and material recovery services to a population in excess of 2,500,000 people. CR &R also provides these services to more than 5,000 commercial establishments in Los Angeles, Orange, Riverside, and San Bernardino Counties. These efforts result in the recovery of more than 120,000 tons of recyclable material each year. These actions annually conserve substantial amounts of the County's finite landfill capacity for use by future generations. Each of the cities in which CR &R provides solid waste collection and material recovery services enjoys the fact that they are in compliance with the diversion requirements set forth in the Integrated Waste Management Act of 1989, commonly known as Assembly Bill 939 (AB 939). CR &R has been providing solid waste collection and material recovery services in these Counties for approximately 40 years. It services the Cities of Stanton, Aliso Viejo, Dana Point, Laguna Hills, Laguna Niguel, San Clemente, San Juan Capistrano, Perris, Temecula, Canyon Lake, Lake Elsinore, Riverside, San Jacinto, Norwalk, Santa Fe Springs and portions of Orange, Riverside and San Bernardino Counties under long -term exclusive solid waste collection contracts. CR &R owns and operates two state -of -the -art material recovery facilities and solid waste transfer stations with permitted capacity of 3,600 tons per day. These facilities are located in the Cities of Stanton and Perris. At the Stanton facility, CR &R has exclusive long -term agreements to handle the solid waste from the Cities of Costa Mesa, Newport Beach, Buena Park, La Palma, Rossmoor, Stanton, Lakewood, and Midway City. CR &R,,,through its Haulaway. Storage Container Division is one of the leading providers of portable steel security containers -in the Western United States. For over. twenty years, through a network of 'seventeen regional service centers in California, Arizona; Colorado, Utah, Nevada and Washington,. Haulaway has ; s , erved major industries with temporary, on- site storage space. Using portable steel securiy containers to protect building materials, tools, and other equipment on° job sites has :become an industry norm since Haulaway introduced this concept -in the late 1960s. .With its own manufacturing capabilities, Haulaway has designed and refined its 'containers to provide weather - resistant, theft - resistant, completely portable security containers to meet the,,specific needs of its diverse customer base. With over 750 employees and a fleet of over 500 trucks and trailers, CR&R, : including its subsidiary companies, is one of the premier environmental services companies in California. Orange County City of Newport Beach Midway City Sanitary District City of Stanton Mr. David Niederhaus Mr. Ron Briles Mr. Jake Wager General Service Director General Manager City Manager (714) 644 -3055 (714) 893 -3553 (714) 379 -9222 Costa Mesa Sanitary District County of Orange City of San Juan Capistrano Ms. Rob Hamers Ms. Jan Goss Mr. Douglas Dumhart Manager Director of Governmental Relations Principal Management Analyst (714) 754 -5043 (714) 568-4160 (949) 443 -6316 City of San Clemente City of Dana Point City of Laguna Niguel Mr. David Lund Ms. Cindy Asher Mr. Ken Montgomery Director of Public Works Recycling Coordinator Director of Public Works (949) 366 -1553 (949) 248 -9890 (949) 362 -4339 City of Laguna Hills Mr. Don White Director of Public Works (949) 707 -2610 Riverside Coun City of Temecula City of Canyon Lake City of Perris Mr. Shawn Nelson Mr. Del Powers Mr. Hector Apodaca City Manager City Manager City Manager (909) 694 -6400 (909) 244 -2955 (909) 943 -6100 City of Lake Elsinore County of Riverside City of San Jacinto Mr. Dick Watenpaugh Mr. Cindie Doke Mr. Peter Cosentini City Manager Administrative Analyst City Manager (909) 674 -3124 (909) 826 -5689 (909) 654 -7337 r Community Participation and Involvement Community involvement is an important part of CR &R's commitment to the cities it serves. CR &R's team of professionals play a key role in supporting the community by actively participating in the following: • Attendance at and participation in special events within the community • Promotion of activities in the schools, such as science fairs, principal for day, scholarship fundraising, and special assemblies • Attendance at public forums and workshops • Service on local committees and task forces • Board and committee participation on local Chambers of Commerce • Appointments to state boards • Presentations to local schools, community groups, organizations and community centers • Monetary contributions in support of worthy local causes September 2, 2003 CITY OF COSTA MESA CAUFORNIA 92829-1200 P.O. BOX 1200 PUBUC SERVICES DEPARTMENT Mr. Robin Hamers, Manager, Dist. Engr. Costa Mesa Sanitary District 234 E. 17"' Street, Suite 205 Costa Mesa, CA 92627 RE: CMSD STANDARDIZED CONTAINER PROGRAM Dear Rob: I am in receipt of your August 25, 2003, letter in which you discuss the leaving of trash containers in the street. As a point of clarification, we discussed at our August 4 meeting the ability to have containers placed in the street at the beginning of trash pick -up day. As each trash container is emptied on that day by your contracted refuse company, the container(s) would be placed in the "parkway" area, out of the street area, and in a position not blocking the sidewalk. I indicated that this procedure should present no adverse impacts to the community. In the future, if and when the District and its contracted refuse company transition to a fully - automated container pickup system, I believe it would be appropriate to leave the empty container(s) in the street area, adjacent to the curb. Please contact me if you have any questions on this matter. Sincerely, 61-LL William J. Morns Director of Public Services WJM:ch c: Marc Puckett, Finance Director Ernesto Munoz, City Engineer Donna Theriault, Management Analyst Tom Fauth, Management Analyst Joan Revak, Clerk of the District Alan Bums 77 FAIR DRIVE PHONE. (714) 754 -&W - FAX (714) 754-W28 - MO: (714) 754 -6244 • WWW.d.008ta- McSaxa.us COSTA MESA SANYTARTOISTqUCT Memorandum ... an Independent Specia[ istrict To: Board of Directors Staff From: Robin B. Hamers, Manager /District Engineer Date: September 3, 2003 Subject: Costa Mesa Disposal Performance Evaluation Special Meeting - Monday September 29, 2003, 6:00 p.m. On September 2, 2003, David Fahrion, President of the CR &R Solid Waste Division, met with the CMSD Manager /District Engineer to outline CR &R's intention of purchasing 50% of Costa Mesa Disposal (CMD) and managing the trash collection operation. CR &R is the parent corporation of CR Transfer. Because of the close ties between Costa Mesa Disposal and CR &R, Raul Rangel approached CR &R to partner with CMD and solve the difficulties they are facing. CMD has provided CR &R the recent correspondence from the District to CMD, including the August 25, 2003 letter to CMD that requested the performance evaluation. Mr. Fahrion was given a thorough explanation of the events leading to the request for a performance evaluation. Currently, CR &R serves 200,000 residences and Mr. Fahrion believes CR &R has the professional management skills to provide the high level of service desired by the Board. The performance evaluation meeting scheduled for September 29, 2003, will be modified to allow the Board to discuss this new development. As a first step, Alan Burns, Attorney for the District, will be providing a legal opinion of the CMSD /CMD Agreement as to whether the sale of 50% of CMD to CR &R requires the approval of the Board of Directors. ftotecting our community s health by providing so/id waste and sewer collection services. costamesasanitarydf trzct.org Costa Mesa Disposal Performance Evaluation September 3, 2003 Special Meeting - Monday September 29, 2003, 6:00 p.m. Page 2 David Fahrion will be meeting with District Staff on, September 15, 2003 to insure CR &R properly addresses the pertinent items in their introductory letter to the Board. The letter will include, at a minimum, the following items: The history of CR &R. How CR &R's management team will increase service levels to reduce resident complaints to almost zero. • CR &R plans to use their existing management team to run the trash collection operation. The letter will address how they will effectively operate in the District without a local office. • CR &R will acknowledge and agree to continue the existing special programs including large item collection, telephone book recycling program, and the Christmas tree program. • CR &R will acknowledge the Roto Industries /CMSD Purchase Agreement including insuring Roto Industries will fund the four year container management program and other obligations set forth in the agreement. • CR &R to explain how CR &R will solve CMD's financial problems as described in letter from Raul Rangel dated January 6, 2003. Included will be acknowledgement that the existing rate paid CMD by the District is sufficient to continue operations with CR &R becoming a 50% partner. • CR &R will explain how driver attitude will be improved. Under the proposed purchase of 50% of CMD, CR &R will retain the current drivers. • CR &R will address the Sanitary District's status of having CR &R's guarantee of their lowest rate for all agencies receiving similar service. • CR &R will discuss full automation and the Board's desire to eventually achieve this goal. CR &R currently provides fully automated service to all 200,000 residences they serve. Whether or not Costa Mesa Disposal needs Board of Director approval to sell 50% of CMD to CR &R, CR &R understands the CMSD Board must be completely satisfied if the relationship will become a successful long -term relationship. Staff is available to discuss the above information prior to the Board meeting on September 29, 2003. cc: David E. Fahrion, CR &R Raul Rangel, CMD I N a Coo °° Costa M-esa S nitr1aw r Ict A^ Ulst-io OR&I � � ... an 1- depenbent Special District Board of Directors Arlene Schafer Greg Woodside James Ferryman Art Perry Dan Worthington Staff Robin B. Hamers Manager District Engineer (949) 631 -1731 August 25, 2003 Mr. Raul Rangel Mr. Ray Rangel Costa Mesa .Disposal, Inc. 2051 Placentia Avenue Costa Mesa, CA 92627 Subject: 1. Standardized Trash Container Program 2. Franchise Performance Review Dear Raul and Ray: Thomas A. Fauth At a special meeting on August 22, 2003, the Costa Mesa Sanitary District Assistant Manager Board of Directors discussed the state of the standardized trash container (714) 754 -5043 program including the letter from Ray Rangel dated August 7, 2003 Revised. The Board directed Staff to implement changes to the District's Joan Revak Operations Code and to revise the green regulations card numbers two and Clerk of the District five to read as follows: (714) 754 -5087 2. All trash belongs inside the container with the lid closed, however, an occasional heavy -duty garbage bag not weighing more than 25 Ibs left next to the containers is permissible. Boxes need to be Fax folded down and tied and weigh no more than 25 ibs per bundle. If (714) 432 -1436 you continually have excess trash, please call (949) 646 -4617 to request an additional container. Never use a non - standardized container for excess trash, use .only heavy -duty trash bags Mailing Address 5. Tree trimmings, shrubs, etc., shall be trimmed to fit inside P O. Box 1200 the container with the lid closed. Bundles left outside the container Costa Mesa, CA will not be collected 92628-1200 Regarding residents placing their standardized containers in the street, the Sanitary District has an existing ordinance that prohibits this practice. Before the District can consider revising the ordinance, District Staff must Street Address confirm with the City of Costa Mesa that the practice of leaving containers 77 Fair Drive out for pick up in the street is acceptable. Staff has already begun Costa Mesa, CA discussing this item with the City. Furthermore, before the District considers 92626 -6520 14", , Printed on Protecting our communitN s W t t� by provibing sofib waste anb sewer collection services. Rec,rledPape" costamesasanitaYNbistrict.org Standardized Trash Container Program August 23, 2003 Page 2 such a suggestion necessary based on driver claims of unsafe working conditions, it will need appropriate documentation of the safety impacts of such a change, as noted below. Addressing those safety issues, the first bullet point of the grievance letter filed by the CMD drivers with the union states that placing empty containers on the curb exposes the drivers to the risk of injury. While it is improper for the District to be involving itself in your employer - employee relation matters, we view the letter as a communication from Costa Mesa Disposal. To address the issue, enclosed are the safety tests performed by Roto Industries on empty and full containers. The test results state the containers are safe to move if rolled on the wheels as intended. These documents were included with the bid package accepted by the District as part of the award of the $2.2 million container purchase from Roto. The District relied on the Roto documents that rolling both full and empty containers is safe. It is suggested that you might present these documents to the drivers and to the union with a statement that Raul Rangel is part of Roto management and, therefore, responsible for these documents and the conclusion that the containers are safe to roll. The Costa Mesa Disposal /Costa Mesa Sanitary District contract requires the empty containers be placed on the curb. It was a material consideration to the Board in going with Roto and Costa Mesa Disposal's recommendations for a semi - automated program that worker safety would be improved. You may remember, the Board believed your workers compensation premiums would go down as a result of this action. Before the Board considers any further changes in the contract for "worker safety ", it wants to be sure such a decision is well supported. Therefore, please submit a report from an independent qualified consultant or testing agency that assesses the potential risk of worker injury from rolling a full container from the curb to the truck and rolling an empty container from the truck onto the curb. District Staff relayed to the Board of Directors the comments made by the CMD foreman in the meeting held July 25, 2003 at CMD and attended by the drivers, mechanics, union, Rob Hamers, Tom Fauth, Joan Revak and Ray Rangel, that the drivers were in too much of a hurry and were not adhering to the safety practices outlined in the CMD safety meetings. District Staff explained to the Board that under the old manual program, each driver was individually responsible for lifting 7.1 million pounds of trash per year and placing it' into the trucks but in the new semi - automated program, the containers may be rolled. P,.,,,<<,don Protecting our commvnitr's ()eaftO [i�) t)rovibing sofib waste oiO sewer collection services. Rec. led Paper Cos toYVlesosamtaY�61strlct.oYg Standardized Trash Container Program August 25, 2003 Page 3 The Board directed staff in the strongest language that staff was not to involve itself in internal Costa Mesa Disposal meetings. In the future, please do not invite CMSD Staff to attend meetings between the drivers, the union, and CMD management. These are meetings internal to CMD. The Board acknowledged that a fully automated collection system may be ultimately desirable and is a goal of the District, however, there are many factors that must be considered prior to its implementation. The Board has directed Staff to research this subject. Parking on City streets is a very sensitive issue in the City. District Staff informed the Board that the drivers repeatedly stated their desire for a fully automated system during the July 25th meeting at Costa Mesa Disposal. The Board of Directors is concerned over the ability and intent of Costa Mesa Disposal to perform under the trash collection contract with the Sanitary District and requested the following issues be discussed during a performance evaluation of Costa Mesa Disposal: • Letter from Raul Rangel dated January 6, 2003, outlining the financial problems facing Costa Mesa Disposal. Are these financial problems severe enough to impact your ability to perform the contract? • Driver attitude and its effect on District/resident relations and trash collection service. • Coordination between Roto Industries and Costa Mesa Disposal for the four -year container management program offered by Roto and accepted by the District. • The management steps that could have been taken to prevent almost all 45,000 lifting bars from being damaged. The Board is concerned about Costa Mesa Disposal's ability to perform its contract and to manage its operations. District Staff will contact you to arrange an advance meeting to discuss these items prior to the meeting with the Board. Sincerely, i Robin B. Harriers Manager /District Engineer P/ANedoil Protecting our commm.t�'S healtfj 6N VroviOlfig so[@ waste ap@ Sewer Collectl0n SeYVICeS. Rec.iclodP.:pe1 COStG MesaSoY(1tG{rNb1StY1ct.0Yg TESTING REPORT DATE: 19 February 1997 SUBJECT: Trash carts PRODUCT IDENTIFICATION: Roto Industries, Inc. — Model 90 gallon TEST: CENTER OF BALANCE POSITION TEST DESCRIPTION: To determine the height of the handle of a tow - wheeled container at the center -of- balance position. This height affects the ease of operation of the cart MINRVIUM PERFORMANCE STANDARD: According to the ANSI standard Z245.3016.2.4.2.6, when in the center -of- balance position, the minimum height is to be 29 inches. The maximum height is to be 40 inches when in the center -of- balance position. TEST PROCEDURE: 1. The cart is to loaded with a standard load. (3.5 pounds per gallon of rated capacity with the load occupying at least 70% of the capacity.) 2. The test to be conducted on a hard, flat surface. 3. Block the wheels so that the cart will not roll. 4. Tip the cart slowly, rotating the cart on the wheels, to the center balance position. This position is determined as the position where the cart has a tendency to remain in a balanced (neutral) position, not tipping forward or backward. 5. When in the center balance position, place blocks under the container to maintain in balanced position. 6. Measure the distance vertically from the ground plane to the center line of the handle of the cart. The accuracy of measurement is to be 10.25 inches. 7. Repeat steps 4, 5 and 6 and then average the results for the three determinations. TEST RESULTS: The results for the loaded cart are: 31 inches. The results for the empty cart are: 36 inches. SUMMARY: The cart passed the test according to the ANSI Z245.30/6.2.4.2.6. Note that the cart also met the standard when empty. CERTIFICATION: A. Brent Strong Professor, Manufacturing Engineering and Technology Brigham Young University 435 CTB Provo, UT 84602 s TESTING REPORT - DATE: 19 February 1997 SUBJECT: Trash carts PRODUCT IDENTIFICATION: Roto Industries, Inc. — Model 90 gallon TEST: SAFETY FACTORS TEST DESCRIPTION: To determine if a container has general safeguards and features. MINIMUM PERFORMANCE STANDARD: The container should contain various safety factors and features as noted in ANSI 2245.30/6.1. TEST PROCEDURE: 1. The cart is visually inspected for the various features. TEST RESULTS: Paragraph notation Feature Acceptable/Non- acceptable 6.1.1 Safety factor Determined by manufacturer 6.1.2 Finish Acceptable 6.1.3.1 Pinch point Acceptable 6.1.3 Lids and doors Acceptable 6.1.4 Handles Acceptable SUMMARY: The cart passed the test at or above minimum requirements as specified in ANSI Z245.30/6.1. CERTIFICATION: A. Brent Strong Professor, Manufacturing Engineering and Technology Brigham Young University 435 CTB Provo, UT 84602 11 • TESTING REPORT - DATE: 19 February 1997 SUBJECT: Trash carts PRODUCT IDENTIFICATION: Roto Industries, Inc. — Model 90 gallon TEST: FORCE TO TIP TEST DESCRIP'T'ION: To measure the strength required to start container movement to the balance point and to ensure that the force is not greater than an established limit. This force relates to the ease of operation of the cart. MINK UM PERFORMANCE STANDARD: According to ANSI Z245.30/6.2.4.2.7, the force must not exceed 120 pounds force. TEST PROCEDURE: 1. The cart is to be loaded with a standard load. (3.5 pounds of material per-gallon of rated capacity. The load to occupy at least 70% of the capacity of the cart.) 2. The ground to be level and with a smooth horizontal surface having less than a I' slope. 3. The cart is to be blocked to prevent movement of the wheels. 4. A spring scale or other force - measuring device is attached to the handle of the cart. (The force - measuring device to have an accuracy of less than t3.) The cart is then tipped by pulling on the force - measuring device, until the cart is in the balanced position. The angle of pull, that is, the tipping force direction, is to be horizontal with less than t2 ° to all sides. (The position where the cart does not tend to move either forward or backward but remains in a balanced position.) The maximum force during the pull is noted. 5. Repeat step 4 so that three determinations are made. These results are averaged. 6. The test is to be conducted at room temperature. TEST RESULTS: The tipping forces were as follows: 55.0, 54.0, 56.0. Average = 55.0 pounds. SUMMARY: The cart passed the test at or above minimum requirements of the ANSI Z245.30/6.2.4.2.7 standard. CERTIFICATION: A. Brent Strong Professor, Manufacturing Engineering and Technology Brigham Young University 435 CTB Provo, UT 84602 4A From: FAUTH, TOM Sent: Wednesday, September 17, 2003 4:27 PM To: Robin B. Hamers (E -mail) Cc: REVAK, JOAN Subject: RE: CR &R Rob, Here are my CR &R comments: 1. The phone number on the side of the nearly 46,000 distributed standardized containers is to Costa Mesa Disposal and must be retained at CR &R for the length of the program estimated to be 20 years for the lifetime of the containers, from July 2001, unless CR &R wishes to change the number and change the number on each container. 2. Continuing the special programs is great. Continuing the payments brought out during our meeting must be addressed as well a. Addendum 1, para 7: $10,000.00, Public Education b. Addendum 1, para 9: $ 500.00, Recycling Efforts c. Addendum 1, para 11: $10,000.00, HHW 3. Continued use of the canopy from CMD or CR &R will be required or the District will have to buy one. 4. Cart Maintenance must at least meet current agreement - of course the District is willing to accept a CR &R offer to extend the maintenance beyond the current 4 years agreement. If there is an offer to continue the maintenance but for less time, then one option for the District is to expect a reduced rate for any follow -on years of maintenance we may wish to contract with CR &R. 5. It must be made clear, the District is not buying any safety issues as they are false fronts for drivers to attempt to get fully automated collections. 6. The Favored Nation clause in the CRT agreement is a separate item from any discussions with CR &R regarding the CMD agreement. They are independent. There is no cause and effect from the CMD agreement to the CRT agreement. Perhaps, CR &R has combined agreements with other jurisdictions and wishes to do the same here, subjecting CMSD to rates which may not be as favorable to CMSD. Makes one want to know what the tonnage rates are for other jurisdictions to validate the "Favored Nation" status we have. Perhaps we can use it to District advantage. In a worst case scenario, following an agreement to break the agreement with CR &R, the District would not have to use the Stanton MRF nor is it based on the CMD agreement. What a kick to have CR &R/CMD trucks and drivers take the collections to another MRF such as Rainbow!! 7. FYI: Driver training: This was probably all OJT at CMD. The training should emphasize customer service /satisfaction is #1. 1 do not expect to receive anywhere near the number of calls we have received with the current agreement with CMD. CR &R: Convince me. 8. Sounds like the corrective measures Dave Fahrion referred to reflect a NO BS policy, or NOBS as I refer to it. District Board must be convinced the Driver attitude will be corrected, and not based on bogus safety issues. CR &R: Convince me. 9. 1 believe this is very doable, but must be accepted with caution to avoid CR &R attempting to pass on increased costs to the District, such as the automated trucks from SJC or mods to the current CMD trucks. FYI: With respect to the 3,500 tons, I am planning to conduct a NO- Notice - Reweigh of the trucks on 9 -24 -03 - this is a Wednesday like the first independent weighing and will cover the same routes. This time we will have two full loads weighed and a single tare weight. Drivers must also not sit in the trucks for the weighings. F Thomas A. Fauth Assistant Manager Costa Mesa Sanitary District (CMSD) 714 - 754 -5043 - - - -- Original Message - - - -- Sent: Tuesday, September 16, 2003 4:10 AM To: Tom Fauth; Joan Revak Subject:. . CR &R Tom & Joan, David Fahrion's letter to the District for the September 29, 2003 special meeting looks fine and I will advise ,him of such. Joan and l will arrange to have a Board packet sent out the week prior to the meeting. Tom, if there are any items you want David to specifically address during his presentation, please let me know; I may have a few things myself. Either you or I can call David. I think we are in good shape. Thanks, Rob qoa -depot 6ul ;aaVq Ieaaua0 8d/N ay; }e noA aaS -ul 019m aol;ou -ou £ONZl6 941 uo eGP! pooh 'osly -s}uawwoo anon( Aela.i ll!M pue plAea y }Inn ssnoslp o; 6u14t auo aney I lou }sla ayl o; jattal HV80 ay} uo s;uawwoo mop( jof nog! NUeul 'ruol 81pHO jof sluawwoC :Ioafgns Nenaa ueop :33 utnej wol :ol nV 8£:£ £OOZ `9l, aagwa;daS 'bepsinyl :tugs [tau-xoo ,@Zygoi] SJaweH qoa :Wo =l 1 From: Rob Harriers [robh2@cox.net] Sent: Friday, September 26, 2003 5:18 AM To: Alan Burns Cc: Tom Fauth; Joan Revak Subject: CR &R purchase of 50% stock of Costa Mesa Disposal Alan, David Fahrion of CR &R does indeed understand that by purchasing 50% of the Costa Mesa Disposal(CMD) stock that it does not change the contractual relationship of the District and CMD. He also understands that regardless of his analysis of the rate structure between the District and CMD, the rate structure stays in place unless the Board were to consider a request otherwise. In the meeting with David Fahrion, Tom, Joan, and me, I pointed out to David that at the upcoming special meeting he can expect our Attorney to emphasize to the Board that the provisions of the contract remain regardless of CR &R's analyses and opinions. And that includes the rate structure. David has performed quite a few acquisitions for CR &R and understands contractual language. However, he foresees a long term relationship and wants to make sure the Board is satisfied with the upcoming management changes, hence, the language in his letter "agreeing" to everything. CR &R plans to submit a request through CMD to the Board to start fully automating the District's collection system at their cost. David's mention of agreeing to the rate system was incorrectly written and he understands that, however, once he is in control and makes all the management improvements he plans on reviewing the rate structure. If you still feel a letter is in order, that is fine. The special meeting is scheduled for this coming Monday evening. Thanks, OU, September 25, 2003 Mr. David E. Fahrion, President CR&R Incorporated Solid Waste Division 11292 Western Avenue Post Office Box 125 Stanton, California 90680 RE: Correspondence Dated September 15, 2003 Dear Mr. Fahrion: Thank you for your letter dated September 15, 2003. While we appreciate that you have been appRiaed of certain corrrract matters between Costa Mesa Disposal and the Costa Mesa Sanitary Disposal, we do not understand the relevance of your comments and warn to ensure that there is no misundrg The City has a contract with Costa Mesa Disposal. We have heard that Costa Mesa Disposal may selling 50% of its stock to CR&R We appreciate that Costa Mesa Disposal may have due diligence requirements in making certain discib ores. Your letter, however, implies that we are approving CUR as taking over the contract. We are not We continue to have a contr= with Costa Mesa Disposal and any change in the party we are contracting with will require other actions by the Board. Therefore, your statements, inter alia, that CR&R "accepts the terms of the o sting " are puzzling. Also your statements that you would like to discuss other obligations of Costa Mesa Disposal as if CR&R desuies to re- negotiate the terms are inappropriate. The District is not renegotiating its contract. The contract conbrtum to exist, as does the corporat ion. At such time as the corporation does not =Lsty the contract also is extinguished. Therefore your statement that "CR&R will honor the existing rate" is troubling. To reiterate, our contract is with Costa Mesa Disposal- We have no coin[ with CR&R and we expect Costa Mesa Disposal to honor its existing contract. If you intend something different, we need to know that immediately and you should not assume that the contract would be assigned to CR&R. I hope the above has been informative. If you have any questions we urge you to raise those now. ZO ill Yv;i U : tT £OOZ /SZ /BO d ALAN iL BLRNS JOHN & HARPER' OP COL"M MICHAELMONTGOMERV - ArM0YR WNALC06P0RA=K UAW OFFICES OF HARPER & BURNS LLP A 1aCM L ZARWT PAIDd� bA=MW A rMOMM" COPY OIA"ON 453 S. nr • S M SMEr ORANGE.CALIFORM "M (n4)771-"M FAX (714) 744,170 TO: District Manager / Engineer FROM: District Counsel DATE: - September 25, 2003 RE: Letter From CR&R In Board Packet (909} 674Lft" rdo not know if correspondence we sent CR&R caused them to sand the letter m the pecloet, but tt is totally inappropriate as suggested by my draft letter. We need to straigf m them out right away about CUR being our new party to the contract. Perhaps we can disaw this at staff meeting Alan R District Counsel Cc: District Treasurer Staff TO In Yv3 Wtl c00Z /SZ /60 X-12169 100 1 mbl) A 'I I I I I M-) AT THE SATURDAY, OCTOBER 49 2® ®3 AT 5:00 P.M. 8203 EAST FULLSDALF DRM ORANGE, CALIFORNIA 92869 R.S.V.P BY SEPTEMBER 299 2® ®3 (714) 771-7728 I� �� � I� I� � �l .�� I� � Fib I� �i1 I� � tla Y