HomeMy WebLinkAbout2020-06-09; City Council; ; Sustainable Materials Management Update on Solid Waste Franchise Agreements for Waste Collection, Processing and Disposal ServicesCA Review _RMC__
Meeting Date: June 9, 2020
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: James Wood, Environmental Manager
james.wood@carlsbadca.gov, 760‐602‐7584
Subject: Sustainable Materials Management Update on Solid Waste Franchise
Agreements for Waste Collection, Processing and Disposal Services
Recommended Action
Receive an informational report on the city’s franchise agreements related to recycling,
organics and solid waste collection, organic materials processing service and transfer and
disposal of solid waste material generated within the city.
Executive Summary
The City of Carlsbad’s current franchise agreement for solid waste collection services and
recycling processing with Coast Waste Management, Inc. expires on June 30, 2022. Since this
agreement was negotiated in 2012, new state laws have been enacted that require significant
expansions in the programs and services provided to residents and businesses. The city has
received notices of concern from the California Department of Resources Recycling and
Recovery, or CalRecycle, about its implementation of these required program elements.
CalRecycle has also asked for assurances that the city is proceeding in good faith to plan and
implement these services.
The City of Carlsbad’s current service agreement for transfer and disposal of solid waste
material, which is delivered to the Palomar Transfer Station, expires on June 30, 2022. Republic
Services, Inc. operates the station, but the County of San Diego owns the site property, which
the city leases for use as a transfer station. Separately, the city leases operational use of the site
to Republic to manage the transfer station. That operational lease expires on May 31, 2027.
City staff and HF&H Consultants have conducted a thorough process to plan for the new
contract terms, programs and services that will be needed for the city, its residents and
businesses, to fully comply with current and pending state laws.
For the collection and processing service agreement, staff will begin a request for proposal
process to ensure compliance with all state regulations, attached as Exhibit 1. For the transfer
and disposal service agreement, staff will proceed with negotiating an amendment to the city’s
service agreement with Republic to expire on May 31, 2027, to align with the lease agreement,
unless otherwise directed by the City Council.
June 9, 2020 Item #10 Page 1 of 286
Discussion
Collection and processing service agreement
The City of Carlsbad currently has a solid waste management franchise agreement for the
collection and recycling processing with Waste Management. This contract expires on June 30,
2022. A new, long‐term collection and recycling processing agreement is needed to ensure
continuation of services to the community and to comply with state law. Staff believes that the
local marketplace for collection services is competitive and the city is likely to receive the best
value through a competitive request‐for‐proposal process.
The city has been working toward compliance with current California solid waste regulations
such as Assembly Bill 939, which established an integrated waste management hierarchy to
guide local agencies in the implementation of source reduction programs, recycling,
composting, environmentally safe transformation and land disposal. The bill required
jurisdictions in California to meet diversion goals of 50% by 2000. That means that at least half
of the waste that the city is now sending to landfills would be diverted to recycling.
In 2011, the state Legislature passed AB 341, on mandatory commercial recycling, which
established a new statewide goal of 75% recycling through source reduction, recycling and
composting by 2020. That bill requires all multifamily residential properties with five units or
more, and businesses that generate four‐cubic yards of solid waste per week to sign up for
mandatory recycling collection service.
Recent organics recycling regulations also include AB 1826, which became effective in 2016.
One component of this law requires local governments to implement food waste recycling
programs for large businesses. Due in large part to the lack of infrastructure to manage these
materials in San Diego County, the city has not yet implemented those programs.
On March 12, 2019, the city received a letter of concern from CalRecycle. In this letter,
CalRecycle said the city had not demonstrated active planning or provided organics recycling,
including food waste collection services, to regulated businesses. On Oct. 2, 2019, CalRecycle
asked that the city submit a follow‐up plan to begin recycling food waste. In addition to the
requirements of AB 1826, CalRecycle is finalizing regulations for Senate Bill 1383, which will
expand the organics recycling requirements to all residents and businesses and require
expanded monitoring, recordkeeping, reporting and enforcement activities.
New contract elements
Current city contracts for solid waste management do not include language requiring
contractors to automatically meet new solid waste regulations that have gone into effect since
the contracts were executed, including food waste recycling. Staff and HF&H thoroughly
reviewed existing agreements and have developed a plan to include new contract terms in
future agreements so the city, as well as its residents and businesses, may fully comply with
current and pending state laws.
June 9, 2020 Item #10 Page 2 of 286
Some of the major new contract elements will include:
Implementation of food waste recycling for all residents and businesses
Significant enhancement of public education and outreach to support compliance
among those who generate the waste
Monitoring of recycling practices to increase participation and reduce contamination
New containers and labeling to meet state requirements and clarify participation rules
Separate contract for how organic waste is processed (composting or anaerobic
digestion)
Expanded recordkeeping and more frequent reporting to comply with state reporting
requirements
Transfer and disposal service agreement
The transfer and disposal of trash generated in the city is currently provided by Republic. Staff
believes it is in the city’s best interest to extend the service agreement with Republic for
approximately five years beyond June 30, 2022. The first advantage to this approach is that the
Republic service agreement would align with the Republic lease agreement for the Palomar
Transfer Station on May 31, 2027. The second advantage is that it gives staff more time to plan
for longer‐term uses of the station. For example, this would give staff the flexibility to
incorporate into the service and lease agreements more advanced material handling options
and any additional negotiated costs incurred from San Diego County as part of the property
lease renewal.
Staff also plans to negotiate with Republic for additional services to be provided during the five
years of the extended contract. These services may include transitioning responsibility for
operation of the recycling buy‐back center and recycling drop‐off to the service agreement and
adding an organics and food waste pre‐processing solution to support the city’s
implementation of the AB 1826 and SB 1383 requirements. These additional services are not
expected to require a term longer than five years for depreciation of invested capital.
Unlike the collection and processing service agreement, city staff are not currently starting a
request‐for‐proposal process for the transfer and disposal service agreement. This is because
the City of Carlsbad receives a preferential rate for the Palomar Transfer Station since Carlsbad
serves as the host city for these services. With these cost savings, and the ability to renew the
lease agreement and transfer and disposal service agreement at the same time, the city will
have more options and a stronger negotiating position in the future.
June 9, 2020 Item #10 Page 3 of 286
Process Integrity Policy
A common best practice during the solid waste competitive request‐for‐proposal process will
be to establish a “process integrity policy” that governs the communications between
companies offering proposals and the city. These policies protect the city by limiting
communication between the companies making the proposals and the authorized negotiations
team. This way the companies seeking the contract will not rely on information from, or try to
negotiate with, people outside of the authorized team. An example Negotiations Process
Integrity Policy is attached as Exhibit 2 for the City Council’s review.
Fiscal Analysis
There are no fiscal impacts associated with this report.
Next Steps
Collection and Processing Service Agreement
Unless directed otherwise by the City Council, staff and HF&H will prepare and issue a request
for proposal and franchise agreement for collection and processing services, including the
expanded services. The proposal process will include the following steps and milestones:
Mid‐June 2020: Issue request for proposal
May‐September 2020: Conduct community and stakeholder outreach
Mid‐September 2020: Receive proposals
Mid‐September‐November 2020: Evaluate proposals
November‐December 2020: Negotiate franchise with finalist(s)
Late January‐early February 2021: Present recommended contractor and proposal for
City Council approval of agreement
February‐December 2021: Preparation for implementation of approved contract
January ‐June 2022: Implementation of services to residential and commercial accounts
Transfer and Disposal Service Agreement
Unless directed otherwise by the City Council, staff and HF&H will enter into negotiations with
Republic on a service agreement extension for the transfer and disposal of the city’s waste. An
estimated timeline is as follows:
August 2020 to May 2021: Negotiations with Republic
July 2021: Presentation of agreement for City Council consideration and approval
January 2022: Potential early start of services
July 2022: Start of extended term
June 9, 2020 Item #10 Page 4 of 286
Environmental Evaluation (CEQA)
Pursuant to Public Resources Code Section 21065, this action does not constitute a “project”
within the meaning of the California Environmental Quality Act in that it has no potential to
cause either a direct physical change in the environment, or a reasonably foreseeable indirect
physical change in the environment, and therefore does not require environmental review.
Public Notification and Outreach
Public notice of this item was posted in accordance with the Ralph M. Brown Act and it was
available for public viewing and review at least 72 hours prior to scheduled meeting date.
Exhibits
1. Request for Proposal and Service Agreement
2. Negotiations Process Integrity Policy (example)
June 9, 2020 Item #10 Page 5 of 286
CITY COUNCIL DRAFT
June 9, 2020 HF&H Consultants, LLC
Request for Proposals for
Recycling, Organics, and Solid Waste Collection;
and, Organic Materials Processing Services
EXHIBIT 1
June 9, 2020 Item #10 Page 6 of 286
This page intentionally left blank
June 9, 2020 Item #10 Page 7 of 286
CITY OF CARLSBAD
REQUEST FOR PROPOSALS FOR
Recycling, Organics, and Solid Waste Collection; and,
Organic Materials Processing Services
Proposal Information: The City of Carlsbad (City) is requesting two (2) proposals: The first proposal is for
the collection of solid waste and organic material, and the collection and processing of recyclable
materials; and the second proposal is for the processing of organic materials. Proposers will have the
option of submitting either proposal or both proposals. The Request for Proposal (RFP) Package and all
associated materials are solely available on a designated website.
Obtaining Access to the RFP Package: To obtain access to the RFP Package Web Page proposer must first
register at the following website. The City uses PlanetBids, which you can access through the link below.
The RFP package will be available once proposer has registered through PlanetBids.
https://www.carlsbadca.gov/services/depts/finance/contracting/default.asp
Proposer must also request to be added to the RFP distribution list by sending an email to
SustainableMaterialsManagement@CarlsbadCA.gov. A supplemental website has been established to
provide proposers with additional background information and documents during the RFP process. This
website can be accessed at through the following link.
http://www.hfh-consultants.com/hfh-clients/Carlsbad-RFP/
Proposer Questions and City Responses: All proposer questions must be submitted in writing via email
to SustainableMaterialsManagement@CarlsbadCA.gov. Proposer questions and City responses will be
issued as addenda, without identifying the party submitting the question.
Receiving RFP Package Addenda and Other Updates: Individuals on the RFP Distribution List (that have
provided complete and accurate contact information) will receive email notification of the issuance of
addenda, or of any other updates to the RFP Package. All relevant documents will be posted to, and will
be solely available on, the Web Page.
Mandatory Pre-Proposal Meeting: All potential proposers should attend the mandatory pre-proposal
meeting on June 30, 2020 from 1:00- 2:00 p.m. The City anticipates holding the meeting in person at the
City’s Faraday office (1635 Faraday Ave, Carlsbad). A virtual meeting will also be available to those that
register as interested parties and indicate that they would like to participate virtually. The City may, but
is not obligated to, reject proposals received from proposers that do not attend the pre-proposal meeting.
Compliance with City’s Process Integrity Policy: Proposers are solely responsible for ensuring that all
team members, including affiliates, subcontractors and individual staff are made aware of, and maintain
compliance with the Process Integrity Policy. Any party that violates the terms of the Process Integrity
Policy may, at City’s sole discretion, be disqualified at any time from further participation in the City’s RFP
process. Prime proposers may share the RFP link with other team members including affiliates and
subconsultants, or may choose to require that team members submit their own executed Process Integrity
Policy Form to SustainableMaterialsManagement@CarlsbadCA.gov.
June 9, 2020 Item #10 Page 8 of 286
Proposal Submittal: All proposals must be received by 3:00 p.m. on June 9, 2020. Proposals received after
this time and date may be rejected. Postmarks will not be accepted as proof of receipt. Proposers shall
mail or hand-deliver proposal packages to:
City of Carlsbad
Attn.: Environmental Services Manager
1635 Faraday Ave
Carlsbad, CA 92008
June 9, 2020 Item #10 Page 9 of 286
This Page Intentionally Left Blank
June 9, 2020 Item #10 Page 10 of 286
TABLE OF CONTENTS
SECTION 1: INTRODUCTION .................................................................................................. 1
1.1 City’s Goals and Objectives ....................................................................................... 1 1.2 RFP Overview ........................................................................................................... 2 1.3 Organization of RFP .................................................................................................. 3
1.4 RFP Schedule ........................................................................................................... 3 1.5 Readily Available Background Information ................................................................. 5
SECTION 2: BACKGROUND ................................................................................................... 6
2.1 Description of Current Services ................................................................................. 6 2.2 Demographic Information ......................................................................................... 12 2.3 Current Tonnage and Account Data ........................................................................ 12 2.4 Historical Operating Information ............................................................................... 13 2.5 Billing Process ......................................................................................................... 15 2.6 Current Rates and Rate Revenues .......................................................................... 15 2.7 Planned Development ................................................ Error! Bookmark not defined.
SECTION 3: REQUESTED FRANCHISE SERVICES AND POLICIES ...................................16
3.1 Scope of Services for Base Proposals ..................................................................... 16 3.2 Scope of Services for Alternative Proposals ............................................................ 25 3.3 Labor Policy ............................................................................................................. 30
3.4 Collection Vehicles and Containers ......................................................................... 31 3.5 Corporation Yard and Transfer Facilities .................................................................. 31 3.6 Subcontractors ........................................................................................................ 31
3.7 Municipal Code Revisions ........................................................................................ 31 3.8 Reimbursement of Procurement Costs .................................................................... 31
SECTION 4: RFP CONDITIONS AND PROPOSAL SUBMITTAL ...........................................33
4.1 Rights Reserved by the City .................................................................................... 33 4.2 General RFP Agreements ........................................................................................ 33 4.3 Proposal Submittal Process ..................................................................................... 35
SECTION 5: PROPOSAL SUBMITTAL REQUIREMENTS .....................................................40
5.1 Proposal Outline ...................................................................................................... 40 5.2 Cover Letter ............................................................................................................. 41 5.3 Executive Summary ................................................................................................. 41 5.4 Company Description .............................................................................................. 41 5.5 Technical Proposal for Base Services...................................................................... 45 5.6 Technical Proposal for Alternative Services ............................................................. 52 5.7 Environmental Considerations ................................................................................. 53
5.8 Acceptance of RFP and Franchise Agreement ........................................................ 54 5.9 Cost Proposal .......................................................................................................... 55 5.10 Other Proposal Forms ............................................................................................. 59
5.11 Additional Information (Optional) .............................................................................. 59
SECTION 6: PROPOSAL EVALUATION PROCESS ..............................................................60
June 9, 2020 Item #10 Page 11 of 286
ATTACHMENTS
1. Service Area Map
2. Current Customer Rates
3. Cost Proposal Forms
4. Secretary’s Certificate
5. Anti-Collusion Affidavit
6. Iran Contracting Act Certification
7. Draft Franchise Agreement for Collection and Processing Services
8. Insurance Certification
LIST OF TABLES
Figure 1: RFP Schedule .................................................................................................................................. 3
Figure 2: Readily Available Background Information .................................................................................... 5
Figure 3: Current Residential and Commercial Collection Services .............................................................. 7
Figure 5: Annual Materials Collected (Source: CWM Reports to City) ........................................................ 13
Figure 6: Accounts by Customer Type (Source: CWM Reports to City) ....................................................... 13
Figure 7: Inventory of Collection Vehicles (Source: CWM Reports to City) ................................................ 14
Figure 8: Number of Routes (Source: CWM Reports to City) ...................................................................... 14
Figure 9: Annual Rate Revenues (Source: CWM Reports to City) ............................................................... 15
Figure 13: Single-Family Collection Base Services ...................................................................................... 18
Figure 14: Multi-Family Collection Base Services ....................................................................................... 20
Figure 15: Commercial Collection Base Services ........................................................................................ 23
Figure 16: Proposal Outline ........................................................................................................................ 40
June 9, 2020 Item #10 Page 12 of 286
SECTION 1: INTRODUCTION
As an environmental leader, the City of Carlsbad (City) has implemented policies to reduce the amount of
waste produced within the city to conserve natural resources, save water and energy, decrease pollution,
meet compliance with state and federal regulations, and support the city’s overall sustainability goals,
including but not limited to sustainable materials management and the reduction of greenhouse gases.
The City is seeking proposals: (1) for collection of recyclable materials, organic materials, and solid waste,
and processing of recyclable materials from residents and businesses; and, (2) for the processing of
organic materials. As of February 2020, the City service area includes approximately 30,631 single-family
(individual cart service) accounts, 276 multi-family (shared bin service) accounts and approximately 1,468
commercial accounts. Currently, Coast Waste Management (CWM) provides collection and processing
services to the City through a franchise agreement with the City. The agreement with CWM will expire on
June 30, 2022. The term of both new agreements will commence on July 1, 2022 and will continue for ten
(10) years, ending June 30, 2032. The Franchise Agreement may be extended at the City’s sole option for
up to an additional five (5) years.
The goal for the new Franchise Agreement is to provide high quality, cost-effective services for the
residents and businesses in the City, while maintaining an exemplary level of customer service.
Through this Request for Proposals (RFP), the City is looking for a service provider who can deliver high
quality service, maintain competitive rates, and support the City’s environmental goals as defined in the
recently-adopted Sustainable Materials Management Plan. This RFP document contains the following: the
goals and objectives of the City; an overview of this RFP; a description of the RFP’s organization; the RFP
schedule; and, a list of readily available background information.
Note that many terms used in this RFP are defined in Exhibit A of the Draft Franchise Agreement, which is
presented as Attachment 7 hereto.
The City has an agreement with Republic Services for solid waste transfer and disposal (Post Collection
Agreement). The Post-Collection Agreement expires on May 31, 2027. The City will not be soliciting
proposals for solid waste transfer or disposal through this RFP and all such materials are required to be
delivered consistent with the City’s obligations under that Post-Collection Agreement.
1.1 City’s Goals and Objectives
The City is requesting proposals from companies that have demonstrated experience providing recyclable
materials, organic materials, and solid waste collection and/or organic materials processing services
comparable to those described in this RFP, under a franchise agreement with a community comparable
to or larger than the City. The City seeks one or more Contractor(s) who have demonstrated its ability to
deliver exemplary customer service, and places a high priority on providing cost-effective, high-diversion
services to all residents, businesses, and contractors in the City.
The City’s goals and objectives for future collection and processing services are as follows:
• Provide exceptional, courteous, timely, responsive, high-quality services to Carlsbad customers,
with a customer-focused philosophy.
June 9, 2020 Item #10 Page 13 of 286
• Support the city’s approved “Sustainable Management Plan”.
• Minimize the landfill disposal of organic materials
• Ensure that the City and its residents and businesses achieve or exceed compliance with State
solid waste and recycling requirements, including but not limited to AB 939, AB 341, AB 1826, SB
1383, and all current and future related regulations.
• Support the State’s goal of resource conservation, which prioritizes management of the waste
stream using the following hierarchy: waste reduction, reuse, recycling, composting,
transformation, and landfilling.
• Provide service to customers at reasonable rates that are effectively managed over the term of
the new Franchise Agreement to minimize future rate increases.
• Minimize environmental impacts of the collection and processing operations.
• Expand and enhance the opportunities for residents and businesses in the City to divert
recyclable and organic materials from landfill disposal.
• Engage a Contractor that cooperatively delivers service to customers and the City, and
collaborates with the City to allow programs to evolve over time.
• Engage a Contractor that is a strong community citizen (e.g. participation in community events
and organizations)
1.2 RFP Overview
The City initiated this RFP process to develop future programs and services and select one or more future
contractors. The Contractor selection process will result in two (2) new contracts:
(1) For collection of recyclable materials, organic materials, and solid waste, and processing of
recyclable materials from residents and businesses; and,
(2) For the processing of organic materials.
The procurement process involves soliciting and evaluating proposals, selecting the future Contractor,
executing contracts with the selected contractors, and establishing an implementation period leading to
commencement of services on July 1, 2022.
The City wishes to receive proposals from companies that have demonstrated experience in safely
providing services comparable to those described in this RFP and the Draft Franchise Agreement
(Attachment 7).
Through this RFP, the City is requesting that proposers submit proposal information on the “Base Services”
which cover collection services and programs that are very similar to the scope of services under the
current agreement, as well as information for “Alternative Services” which address new programs for
residents and businesses. The technical and cost proposals for Alternative Services will be evaluated and
used by the City to determine if one or more of the Alternative Services will be included in the final scope
of the Agreement. The City has identified Required Alternative Services (for which proposers are required
to submit proposal information), and Optional Alternative Services (for which proposers are invited, but
not required to submit proposal information).
June 9, 2020 Item #10 Page 14 of 286
Among the Optional Alternative Services is the opportunity for proposers to propose organics materials
processing services only, with or without proposing to provide collection services. More information on
this option is provided in Section 3.2 of this RFP.
Proposers submitting proposals for collection services are required to submit proposal information for the
Base Services and the Required Alternative Services. In addition, the City invites proposers to submit
proposed cost and operating information to reflect any innovative or cost-saving alternative approaches
to the services requested by this RFP, which are not otherwise specified in or requested by this RFP, in the
technical proposal and by using the space provided in the cost proposal forms (Attachment 3).
Requested services are summarized in Section 3 of this RFP.
1.3 Organization of RFP
This RFP is organized into six sections as follows:
Section 1 provides a brief introduction to the RFP.
Section 2 provides background information on the City, including current service arrangements.
Section 3 presents the scope of requested collection and processing services.
Section 4 provides the RFP policies, conditions, and submittal process.
Section 5 describes proposal submittal requirements.
Section 6 outlines the proposal evaluation process and criteria by which the proposals will be
evaluated.
The attachments include the Draft Franchise Agreement, proposal forms, current rates for collection and
processing services, and additional background information.
1.4 RFP Schedule
The key activities and completion dates for the RFP process are provided in Figure 1. The RFP process is
described in detail in Section 4. All questions regarding the RFP must be submitted in accordance with
guidelines specified in Section 4.3.
Figure 1: RFP Schedule
* Note that the City may modify this process and/or schedule to best meet the needs of the City.
ACTIVITY COMPLETION DATE*
City releases RFP for Collection and Processing Services June 12, 2020
Deadline for submittal of written questions before the pre-proposal
meeting June 23, 2020 @ 3:00 p.m.
Mandatory pre-proposal meeting June 30, 2020 @ 1:00 p.m.
June 9, 2020 Item #10 Page 15 of 286
{Remainder of page intentionally blank}
Deadline for registering to receive future correspondence and
announcements (note: company registering must have had a representative at the mandatory pre-proposal meeting) July 3, 2020 @ 5:00 p.m.
Deadline to submit additional written questions July 3, 2020 @ 5:00 p.m.
City will issue: response to written questions, summary of responses
provided at the pre-proposal meeting, and RFP addendum if
necessary
July 24, 2020
Proposers submit proposals September 10, 2020 @ 3:00 p.m.
City conducts preliminary evaluation, clarifies proposal questions September – November 2020
City conducts interviews with one or more proposers October 2020
City negotiates with recommended/shortlisted Contractor(s) November – December 2020
City Council selects collection and processing Contractor(s) January – February 2021
City conducts final negotiation with selected Contractor(s) March – May 2021 (if needed)
City Council approves negotiated Franchise Agreement June 1, 2021 (if needed)
Selected Contractor(s) begin providing service July 1, 2022
June 9, 2020 Item #10 Page 16 of 286
1.5 Readily Available Background Information
Below is a list of readily available sources that provide background information on the City. Additional
background information is provided in Section 2, in the RFP attachments, and on the RFP Web Page.
Figure 2: Readily Available Background Information
Resource Relevant Content Location
RFP Website • Current Franchise Agreement
• Post-Collection Agreement
• Detailed Account and Service
Level Data
• Draft Franchise Agreement
• Proposal Forms
• Current Rates
http://www.hfh-consultants.com/hfh-
clients/Carlsbad-RFP/
City Website
• General information
• Solid Waste & Recycling Services
• General Plan
• Sustainable Materials
Management Plan
• Municipal Code*
https://www.carlsbadca.gov/
https://www.carlsbadca.gov/recycling
https://www.carlsbadca.gov/services/depts/pla
nning/general.asp
https://cityadmin.carlsbadca.gov/civicax/fileba
nk/blobdload.aspx?BlobID=39252
http://www.qcode.us/codes/carlsbad/
* Note that the City intends to revise various sections of the Municipal Code, as needed, following the RFP
process, to ensure that there are no inconsistencies between the Municipal Code and the final Franchise
Agreement.
{Remainder of page intentionally blank}
June 9, 2020 Item #10 Page 17 of 286
SECTION 2: BACKGROUND
Although the information presented in this section was obtained from what are considered by the City to
be reliable sources, it is presented for informational purposes only. The proposer, by submission of their
proposal(s) in response to this RFP, agrees to indemnify and hold the City harmless from any claims of
damages incurred by the proposer for its reliance on any data provided by the City in this RFP process.
Each proposer should take whatever steps it believes are necessary to reasonably determine the actual
service requirements of the City and understand service conditions in the City when preparing its
proposal.
2.1 Description of Current Services
Pursuant to Section 6.08.02 of the City Municipal Code, all occupied premises are required to have and
pay for collection service for discarded materials. Under the existing agreement, CWM collects residential
and commercial solid waste, recyclables, and green waste from customers within the City at City-approved
rates. CWM provides services to City facilities at no charge to the City (See Draft Franchise Agreement
Exhibit B5 for a list of service levels and locations).
Currently, both City and CWM are responsible for billing: specifically, City provides billing services to most
residential customers, bi-monthly, and CWM bills all other customers and any ancillary services on a
monthly basis in arrears. Collection of delinquent accounts is the sole responsibility of CWM. CWM may
discontinue service to delinquent accounts, may charge late fees, and may charge “re-start fee” to begin
services again. The City is interested in the possibility of transferring the responsibility for all billing to the
successful proposer as part of this RFP process and is soliciting alternate proposals on that basis (see
Sections 2.5 and 5.5.9 below for more information).
CWM provides all customer service related to the current franchise. This includes all customer service call
center, electronic, and web-based customer interactions. The contract requires a designated “contract
liaison” (to work with city on contract issues) as well as a “service liaison” (to work with city to resolve
customer service complaints). Under the new agreements, City requires that these contacts be local and
dedicated to the City. The City strongly prefers that the selected proposer utilize a local customer service
call center in Northern San Diego County.
CWM is currently responsible for providing collection containers (including carts, bins, and roll-offs) to
customers. The selected proposer will be required to purchase new collection containers with in-mold SB
1383 complaint information and City-owned branding/contact information for all customers at the
commencement of the new Franchise Agreement. The selected proposer will be responsible for
distribution, repair, and maintenance of all collection containers. At the City’s sole option, all collection
containers purchased pursuant to the new Franchise Agreement will become the property of the City
upon termination or expiration of the Agreement. See Section 5.6 of the Draft Franchise Agreement
(Attachment 7).
Under the current Franchise Agreement, CWM processes all recyclable materials. To fulfil the
requirements of the Post-Collection Agreement, CWM delivers all solid waste and green waste to the
Palomar Transfer Station (PTS) for processing and disposal. CWM pays Republic Services directly for
transfer and disposal at rates determined by the Post-Collection Agreement. While the Post-Collection
Agreement is scheduled to expire during the term of this Franchise Agreement, the City intends to direct
June 9, 2020 Item #10 Page 18 of 286
the delivery of Solid Waste and Organic Materials to PTS or another facility throughout the term of this
Agreement.
The Carlsbad Unified School District is not included in the current franchise agreement. The school district
contracts separately for solid waste disposal, and collection and processing of organics and recyclables
materials.
Figure 3 summarizes the City’s current recyclable materials, organic materials, and solid waste collection
services provided to single-family, multi-family, and commercial customers. Other franchise services
include: collection from City facilities and special events; public education; billing; customer service; and,
recyclables processing.
Figure 3: Current Residential and Commercial Collection Services
Service Single-Family Multi-Family Commercial
Recyclable
Materials
• Weekly, curbside
• Carts (35-, 64-, or 96-
gallon)
• Green body, blue lid
• Customer may request up
to two additional carts (of
same size) at no charge
• At least weekly; as
scheduled by customer
• Collection location
determined by Contractor
• Bins (3- or 4- CY); 3 CY split
bins; or carts (35-, 64-, or
96-gallon)
• Containers may be shared
between occupants
• Size and frequency
determined by customer
and Contractor – must be at
least two (2) 96-gallon carts
per 25 MFD units
• At least weekly; as
scheduled by customer
• Collection location
determined by Contractor
• Bins (3- or 4-CY); 3 CY
split-bins; or carts (35-, 64-,
or 96-gallon)
June 9, 2020 Item #10 Page 19 of 286
Service Single-Family Multi-Family Commercial
Organic
Materials
(Yard Trimmings)
• Yard trimmings only
• Weekly, curbside
• 35-, 64-, or 96-gallon carts
• Customer may request up
to two additional carts (of
same size) at no charge
• Green body, green lid
• Curbside Holiday tree
collection, at no cost
• Yard trimmings only
• At least weekly; as
scheduled by customer
• Bins (3 CY) or carts (96
gallon)
• Voluntary subscription
• Collection method options
to be selected by customer,
choices are similar to
collection options 1-3 for
commercial solid waste (see
below)
• Holiday tree collection, at
no cost (collection time
and location mutually
agreed upon by MFD
property manager and
Contractor)
• Yard trimmings only
• At least weekly; as
scheduled by customer
• Bins (3 CY) or carts (96
gallon)
• Voluntary subscription
• Collection method options
to be selected by
customer, choices are
similar to collection
options 1-3 for commercial
solid waste (see below)
June 9, 2020 Item #10 Page 20 of 286
Service Single-Family Multi-Family Commercial
Solid Waste
• Weekly, curbside
• Carts (35-, 64-, or 96-
gallon)
• Green body, gray lid
• Customer may request
additional carts; charged at
rate per cart per month
• Temporary collection
service upon customer
request, using bins or roll-
offs
• At least weekly; up to
6x/week as scheduled by
customer
• Bins (2-, 3-, 4-, or 5-CY);
split-bins (3 CY); or carts
(35-, 64-, or 96-gallon)
• Required to subscribe to bin
service, unless waived and
allowed to use carts
• Bins may be shared
between occupants
• Temporary collection
service upon customer
request, using bins or roll-
offs
• At least weekly; as
scheduled by customer
• Bins (2-, 3-, 4-, or 5-CY);
split-bins (3 CY); or carts
(35-, 64-, or 96-gallon)
• Required to subscribe to
bin service, unless waived
and allowed to use carts.
See options below
• Option 1 – Single property
bins, split-bins,
compactors, or roll-off
boxes. If cart service is
approved, collect carts at
least 1x per week; no more
than 2 carts per premises
per week
• Option 2 – Bins or carts
that are shared by two or
more adjacent commercial
premises
• Option 3 – Permanent roll-
off/compactor of 10, 20, or
40 CY. Customer purchase
or lease through
Contractor or other vendor
• Temporary collection
service upon customer
request, using bins of roll-
offs
Backyard or
Sideyard Service
• Backyard service available
at a higher service rate
• Backyard service available
at a higher service rate
• Backyard service available
at a higher service rate
June 9, 2020 Item #10 Page 21 of 286
Service Single-Family Multi-Family Commercial
Other
• On-call bulky items
collection (see below)
• On-call e-waste collection
(see below)
• Cell phone and battery
collection (see below)
• Materials accepted free of
charge at buy-back center
(see below)
• Special services (roll-out,
locking containers, etc.)
upon customer request; at
rates set forth in the
agreement
• Custom containers upon
request; at a rate agreed
upon by customer and
Contractor
• On-call bulky items
collection (see below)
• On-call e-waste collection
(see below)
• Materials accepted free of
charge at buy-back center
(see below)
• Special services (roll-out,
locking containers, etc.)
upon customer request; at
rates set forth in the
agreement
• Custom containers upon
request; at a rate agreed
upon by customer and
Contractor
• Bulky item collection (see
below)
• C&D – 3-CY bin available
Included Services
for City Facilities
(provided at no
charge to the
City)
• N/A • N/A • Recyclables, solid waste,
and organics (yard
trimmings)
• Both temporary and
scheduled services. At
least weekly, and as
frequently as scheduled by
the City
• All container options
available: Carts, bins,
compactors, or roll-off
• List of facilities receiving
service, container types
and sizes, and frequency
specified in agreement
• City may change service
level and number of
facilities without
additional compensation
June 9, 2020 Item #10 Page 22 of 286
Service Single-Family Multi-Family Commercial
Household
Hazardous Waste
(HHW)
• Sharps accepted at buy-
back center or through
containers placed at up to
3 locations at City facilities
(replace containers up to
10x per year)
• 2 free pharmaceutical
collection events per year
• Curbside household battery
and cell phone collection
(sealed in clear plastic bag,
on top of recyclable
materials cart)
• On-call e-waste collection;
3 pick-ups per year at no
charge. Up to 5 items per
pickup, within 3 feet of
curb (additional pick-ups or
oversize items accepted at
buy-back center at no
charge)
• Customers must schedule
e-waste pick-up by 5:00pm
on day before regular
collection day
• Sharps accepted at buy-
back center or through
containers placed at up to
3 locations at City facilities
(replace containers up to
10x per year)
• 2 free pharmaceutical
collection events per year
• On-call E-Waste collection;
3 pick-ups per year at no
charge. Up to 5 items per
pickup, within 3 feet of
curb (additional pick-ups or
oversize items accepted at
buy-back center at no
charge)
• Customers must schedule
e-waste pick-up by 5:00pm
on day before regular
collection day
• N/A
Bulky Item
Collection
• On-call bulky item
collection
• Customers must schedule
pick-up by 5:00pm day
before regular collection
day
• 5 items per pick-up, placed
within 3 feet of curb
• 3 pick-ups per year at no
charge; additional pick-ups
at rate set forth in
agreement
• On-call bulky item
collection
• Customers must schedule
pick-up by 5:00pm day
before regular collection
day
• 5 items per pick-up, placed
within 3 feet of curb
• 3 pick-ups per year at no
charge; additional pick-ups
at rate set forth in
agreement
• Bulky item collection
provided at rates set forth
in agreement
• May not include over 1 CY
material generated from
C&D or remodeling
activities
Illegal Dumping
• Pick up and dispose of bulky items left adjacent to
public rights of way within
48 hours of notification
from City
• See Single Family • See Single Family
June 9, 2020 Item #10 Page 23 of 286
Service Single-Family Multi-Family Commercial
Buy-Back Center
• Operate a CRV buy-back
center at Palomar Transfer
Station
• Also accept e-waste,
sharps, cell phones, and
batteries at no charge for
residential
• Tuesday – Saturday;
8:00am – 4:00pm
• Operate a CRV buy-back
center at Palomar Transfer
Station
• Also accept e-waste,
sharps, cell phones, and
batteries at no charge for
residential
• Tuesday – Saturday;
8:00am – 4:00pm
• Operate a CRV buy-back
center at Palomar Transfer
Station
• Tuesday – Saturday;
8:00am – 4:00pm
2.2 Demographic Information
The City of Carlsbad was incorporated in 1952 and is located in Northern San Diego County. The City serves
a population of approximately 115,000, with approximately 47,000 single and multi-family housing units.
The table below presents a summary of the demographic and housing data provided by the CA
Department of Finance.
Figure 4: Household Data
Single
Homes
Two to Four
Units Five Plus Mobile Homes
32,978 2,578 10,2444 1,280
Source: CA Department of Finance Table E-5 City/County Population and Housing Estimates 1/1/2019.
Collection services for the Carlsbad Unified School District are excluded from the scope of both the existing
and future franchise agreements.
For more information about the City, please visit our website at www.CarlsbadCA.gov.
2.3 Current Tonnage and Account Data
Figure 4, below, summarizes recent historical volumes of materials collected in the City, as reported by
CWM. Figure 5, below, summarizes customer account data for FY 16-17 and FY 17-18, as reported by
CWM. As stated in the beginning of this Section, the City believes this information to be reasonable, but
does not warrant or accept responsibility for its accuracy. It is the responsibility of each proposer to
undertake, at its sole cost, any verification of this information and development of any supplemental
information necessary for it to submit a response to this RFP.
June 9, 2020 Item #10 Page 24 of 286
Figure 5: Annual Materials Collected
(Source: CWM Reports to City)
2017 2018 2019
Recyclable Materials (tons)
Single-Family 12,015 11,561 12,233
Multi-Family / Commercial Total 5,649 6,057 6,680
Roll-Off 710 576 692
Organic Materials (tons)
Single-Family 18,719 17,906 18,555
Holiday Trees (SFD + MFD) N/A N/A 25
Commercial 422 321 383
Roll-Off 3,638 3,276 3,461
Solid Waste (tons)
Single-Family 25 ,533 26,185 26,467
Multi-Family / Commercial Total 39,513 39,224 39,642
Roll-Off 22,420 25,216 21,358
Additional Services
C&D Roll-Off 6,379 6,249 3,846
White Goods 165 143 134
E-Waste 75 95 67
Figure 6: Accounts by Customer Type
(Source: CWM Reports to City)
2017 2018 2019
Single-Family 30,114 30,323 30,631
Multi-Family 283 234 276
Commercial 1,510 1,300 1,468
2.4 Historical Operating Information
Figures 7 and 8, below, summarize the number of collection vehicles and collection routes utilized by
CWM for provision of service under the existing franchise agreement. As stated in the beginning of this
Section, the City believes this information to be reasonable, but does not warrant or accept responsibility
for its accuracy. It is the responsibility of each proposer to undertake, at its sole cost, any verification of
this information necessary for it to submit a response to this RFP.
June 9, 2020 Item #10 Page 25 of 286
Figure 7: Inventory of Collection Vehicles
(Source: CWM Reports to City)
Type of Vehicle Total Collection Vehicles
Automated Side Loader 17
Front End Loader 16
Rear End Loader 0
Roll-Off 6
Flat Bed 1
Total 40
Figure 8: Days of Service
(Source: CWM Reports to City)
June 9, 2020 Item #10 Page 26 of 286
The residential collection days will remain the same for all customers at the beginning of the new
Franchise Agreement, and may not be changed during the term of the new Franchise Agreement
without prior City approval.
2.5 Billing Process
Currently, both the City and CWM are responsible for a portion of the billing. The City provides billing
services to all residential customers, for properties located within Carlsbad Municipal Water District
boundary, on water bills, bi-monthly. CWM bills residential customers, located within the other two water
districts in the city, commercials customers and any ancillary services on a monthly basis, in arrears. Both
parties perform collection activities related to delinquent accounts with the City’s primary remedy being
discontinuation of water service. CWM may discontinue service to delinquent accounts, may charge late
fees, and may charge “re-start fee” to begin services again.
The City is interested in the possibility of transferring the responsibility for billing to the successful
proposer as part of this RFP process and is soliciting alternate proposals on that basis. Base proposals
should assume the City continues performing billing services and an Alternative proposal shall be
submitted with the incremental additional pricing for the proposer to perform the billing services. See the
requirements provided in Franchise Agreement Section 4.8 for details on the billing requirements.
2.6 Current Rates and Rate Revenues
The rates for collection services effective July 1, 2019 through June 30, 2020 are shown in Attachment 2
of this RFP and are subject to annual adjustment on July 1 each year. Prior to the effective date of the new
Franchise Agreement and based on the negotiations resulting from this RFP, the City will approve Rates
which will be effective July 1, 2022 through June 30, 2023. Figure 9 below provides the annual rate
revenues resulting from the most recent five years of the current Franchise Agreement.
Figure 9: Annual Rate Revenues
(Source: CWM Reports to City)
Residential
(City Billed)
Residential
(CWM Billed) Commercial Roll-off TOTAL
2019 $5,540,700.88 $2,771,539 $11,109,669 $3,227,087 $22,648,996
2018 $5,383,608.03 $2,776,453 $10,044,866 $3,749,922 $21,954,849
2017 $5,248,994.70 $2,769,920 $9,584,379 $3,213,449 $20,816,743
2016 $5,140,561.60 $2,592,292 $9,015,642 $2,676,418 $19,424,914
2015 $5,049,394.61 $2,638,703 $8,638,342 $2,579,926 $18,906,366
{Remainder of page intentionally blank}
June 9, 2020 Item #10 Page 27 of 286
SECTION 3: REQUESTED FRANCHISE SERVICES AND POLICIES
This section provides a description of the collection and processing services solicited through this RFP.
The City is requesting proposals for:
1. Collection Services: Collection of recyclable materials, organic materials (including Food Waste),
and solid waste, and processing of recyclable materials (Collection Agreement) and other related
services. The agreement will commence July 1, 2022 and continue for a period of ten (10) years.
The collection services proposal shall include all required elements, as described in Section 5.
AND/OR
2. Organics Processing Services: Processing of organic materials (Organics Processing Agreement)
and other related services. The agreement will commence July 1, 2022 and continue for a period
of ten (10) years.
With respect to the proposal for collection services, the City is requesting that proposers submit a “Base
Proposal” as well as “Alternative Proposals.” The technical and cost proposals for the Alternative
Proposals will be evaluated and used by the City to determine if one or more of the alternative services
will be included in the final scope of the new Franchise Agreement. The scope of services for the Base
Proposal and Alternative Proposals are summarized in Sections 3.1 and 3.2, respectively. Proposers are
required to submit a response for the Base Proposal and the Alternative Proposals identified as
“required”.
The Draft Franchise Agreement presents all of the contract terms and conditions including a complete
description of the collection and processing services requested. It also describes Contractor’s
compensation and rate-setting methods, dispute resolution, indemnification, insurance, performance
assurances, defaults and remedy provisions, termination rights, performance standards and
consequences for non-compliance, reporting obligations, and other provisions. If there are differences
between the summary of collection and processing services described in this RFP and the Draft Franchise
Agreement, the terms and conditions in the Draft Franchise Agreement shall prevail.
3.1 Scope of Services for Base Proposals
The selected Contractor shall have the exclusive right to collect residential and commercial recyclable
materials and organic materials, and commercial and residential solid waste, subject to the limitations
described in Section 1.2 of the Draft Franchise Agreement. These exclusive rights are consistent with
current practice. Under the terms of the Draft Franchise Agreement, the Contractor will be required to
transport and deliver all solid waste collected in the City to Palomar Transfer Station. The Contractor will
also be required to deliver all organic materials collected in the City to either the Palomar Transfer Station
or another location, identified through this RFP process, for transfer and/or processing. For purposes of
the RFP process, all proposers should assume delivery to the Palomar Transfer Station.
The Contractor shall be responsible for collection, processing, and marketing of recyclable materials as
described in the Draft Franchise Agreement. The Contractor may use its own processing site(s) or a
subcontractor’s processing site(s). The Proposer to win the Organics Processing Agreement shall be
June 9, 2020 Item #10 Page 28 of 286
responsible for the processing of all organic materials collected under the new Franchise Agreement. In
order to improve customer service and convenience, improve contract management, increase diversion,
and control costs, the City decided to make several minor modifications to the existing collection services,
which are reflected in the Draft Franchise Agreement. Figures 13 through 15 summarize the base services
for single-family, multi-family, and commercial customers and several other services. Additional service
requirements are stated in the Draft Franchise Agreement.
Each proposer shall develop its base proposal reflecting its plan to purchase new collection vehicles and
containers as further described in Section 3.4. At proposer’s option, the proposer may submit an
alternative (optional) proposal that relies on provision of used equipment for some or all equipment
needs. Refer to Section 3.4 for more information.
{Remainder of page intentionally blank}
June 9, 2020 Item #10 Page 29 of 286
Figure 13: Single-Family Collection Base Services
Service Current SFD Service Requested SFD Base Services
Recyclable
Materials
• Weekly, curbside
• Carts (35-, 64-, or 96-gallon)
• Green body, blue lid
• Customer may request up to two additional
carts (of same size) at no charge
• Weekly, curbside
• Carts (32-, 64-, or 96-gallon)
• Blue body, blue lid, city branding
• Customer may request up to two additional
carts (of same size) at no charge
• Cardboard may be bundled rather than
placed in the recyclable materials cart for
collection
Mixed Organic
Materials
(Three
Container )
• Yard trimmings only
• Weekly, curbside
• Carts (35-, 64-, or 96-gallon)
• Customer may request up to two additional
carts (of same size) at no charge
• Green body, green lid
• Curbside Holiday tree collection, at no cost
• All organic materials (Yard Trimmings, Food
Scraps, Soiled Paper Products, Compostable
Plastics, and Clean Wood)
• Weekly, curbside
• Carts (32-, 64-, or 96-gallon)
• Green body, green lid, city branding
• Customers may place organic materials in
compostable plastic bags prior to placing in
the organic materials container for collection
• City approved Kitchen pails for food waste
provided and delivered to all SFDs at start-
up, and throughout the term upon request
• Curbside Holiday tree collection, at no cost
• Holiday Tree Drop-off at five (5) locations
Source
Separated
Organics
(Four
Container)
Yard Trimmings same as above, with source
separated Food Waste as below:
• Brown body, brown lid, city branding
• Acceptable material: Food Scraps, Soiled
Paper Products, Compostable Plastics,
• Weekly, curbside
• Carts (32-gallon, or smaller if available)
Solid Waste
• Weekly, curbside
• Carts (35-, 64-, or 96-gallon)
• Green body, gray lid
• Customer may request additional carts;
charged at an approved rate per cart per
month
• Temporary collection service upon customer
request, using bins or roll-offs
• Weekly, curbside
• Carts (32-, 64-, or 96-gallon)
• Gray lid, gray body, city branding
• Customer may request additional carts;
charged at an approved rate per cart per
month
• Temporary collection service upon customer
request, using bins or roll-offs
June 9, 2020 Item #10 Page 30 of 286
Service Current SFD Service Requested SFD Base Services
Backyard or
Sideyard
• Backyard service provided to customers at
an increased rate.
• Backyard service provided to customers at
an increased rate
• Provided to disabled individuals at no
additional cost
• Include valet service for seniors
Other
• On-call bulky items collection (see below)
• On-call e-waste collection (see below)
• Cell phone and battery collection (see
below)
• On-call bulky items collection (see below)
• On-call e-waste collection (see below)
• Cell phone and battery collection (see
below)
• Conduct 2 public compost give-away events
per year
Household
Hazardous
Waste
(HHW)
• Sharps accepted at buy-back center or
through containers placed at up to 3
locations at City facilities (replace container
up to 10x per year)
• 2 free pharmaceutical collection events per
year
• Curbside household battery and cell phone
collection (sealed in clear plastic bag, on top
of recyclable materials cart)
• On-call e-waste collection; 3 pick-ups per
year at no charge. Up to 5 items per pickup,
within 3 feet of curb (additional pick-ups or
oversize items accepted at buy-back center
at no charge)
• Sharps accepted at buy-back center or
through containers placed at up to 3
locations at City facilities (replace container
up to 10x per year)
• 2 free pharmaceutical collection events per
year in coordination with the city.
• Curbside household battery and cell phone
collection (sealed in a fluorescent plastic
bag, on top of recyclable materials/solid
waste cart)
• On-call E-Waste collection; 3 pick-ups per
year at no charge. Up to 5 items per pickup,
within 3 feet of curb (additional pick-ups or
oversize items accepted at buy-back center
at no charge)
• Collect used motor oil and filters and used
cooking oil placed in a Contractor-provided
Used Oil Recovery Kit; up to 1x per week on
solid waste collection day
June 9, 2020 Item #10 Page 31 of 286
Service Current SFD Service Requested SFD Base Services
Bulky Item
Collection
• On-call bulky item collection
• Customers must schedule pick-up by 5:00pm
o day before regular collection day
• 5 items per pick-up, placed within 3 feet of
curb
• 3 pick-ups per year at no charge; additional
pick-ups at rate set forth in agreement
• On-call bulky item collection
• Contractor must provide service within 1 day
of customer’s requested service date
• 5 items per pick-up, placed within 3 feet of
curb
• 3 pick-ups per year at no charge; additional
pick-ups at rate set forth in agreement
• Must keep bulky items separate from solid
waste
• Contractor shall not dispose of materials
that can be reused or recycled
Illegal
Dumping
• Pick up and dispose of bulky items left
adjacent to public rights of way within 48
hours of notification from City
• Provide Container for City-conducted illegal
dumping clean-up. Provide Container within
48 hours of notification from the City
Homeless
Encampments
• Not currently included in service • Provide containers (bins/roll-off) for City
performed clean-up events for homeless
encampments upon request from the City
Italics denote changes to existing services.
Alternative services are not listed in this table; refer to Section 3.2.
Figure 14: Multi-Family Collection Base Services
Service Current MFD Service Requested MFD Base Services
Recyclable
Materials
• At least 1x/week, as scheduled by customer
• Collection location determined by
Contractor
• Bins (3- or 4- CY); 3-CY split bins; or carts
(35-, 64-, or 96-gallon)
• Containers may be shared between
occupants
• Size and frequency determined by customer
and Contractor – must be at least two (2) 96-
gallon carts per 25 MFD units
• At least 1x/week, up to 6x/week, as
scheduled by customer
• Curbside or other customer-selected service
location
• Bins (1-,2-,3- , 4-, 5-, or 6-CY); Split bins (3-
CY); or carts (32-, 64-, or 96-gallon)
• Containers may be shared between
occupants
• Size and frequency determined by customer
and Contractor – but must be at least two (2)
96-gallon carts per 25 MFD units
June 9, 2020 Item #10 Page 32 of 286
Service Current MFD Service Requested MFD Base Services
Organic
Materials
(Yard
Trimmings,
Food Scraps,
Soiled Paper
Products, and
Clean Wood)
• Yard trimmings only
• At least weekly; as scheduled by customer
• Bins (3 CY) or carts (96 gallon)
• Voluntary subscription
• Collection method options to be selected by
customer, choices are similar to collection
options for commercial solid waste
• Holiday tree collection, at no cost (collection
time and location mutually agreed upon by
MFD property manager and Contractor)
• All organic materials (Yard Trimmings, Food
Scraps, Soiled Paper Products, Compostable
Plastics, and Clean Wood)
• At least 1x/week, up to 6x/week, as
scheduled by customer
• Curbside or other customer-selected service
location
• Bins (1-, 2-, 3-, or 4- CY) or Carts (32-, 64-, or
96-gallon)
• Mandatory subscription/universal service
• City approved Kitchen pails for food waste
provided and delivered to all MFDs at start-
up, and throughout the term upon request
• Holiday tree collection, at no cost (collection
time and location as mutually agreed to by
MFD property manager and Contractor)
Solid Waste
• At least weekly; as scheduled by customer
• Bins (2-, 3-, 4-, or 5-CY); split-bins (3 CY); or
carts (35-, 64-, or 96-gallon)
• Temporary collection service upon customer
request, using bins or roll-offs
• Bins may be shared
• Special services (roll-out, locking containers,
etc.) at rates set forth in agreement
• Customized containers upon request at
customer and Contractor agreed-upon rate
• At least weekly; as scheduled by customer
• Bins (1-,2-,3- , 4-, 5-, or 6-CY); Split bins (3-
CY); or carts (32-, 64-, or 96-gallon)
• Curbside or other customer-selected service
location
• Temporary collection service upon customer
request, using bins or roll-offs
• Bins may be shared
• Special services (roll-out, locking containers,
etc.) at rates set forth in agreement
• Customized containers upon request at
customer and Contractor agreed-upon rate
June 9, 2020 Item #10 Page 33 of 286
Service Current MFD Service Requested MFD Base Services
Other
• Special services (roll-out, locking containers,
etc.) upon customer request; at rates set
forth in the agreement
• Custom containers upon request; at a rate
agreed upon by customer and Contractor
• On-call bulky items collection (see below)
• On-call e-waste collection (see below)
• Materials accepted free of charge at buy-
back center (see below)
• Special services (roll-out, locking containers,
etc.) upon customer request; at rates set
forth in the agreement
• Custom containers upon request; at a rate
agreed upon by customer and Contractor
• On-call bulky items collection (see below)
• On-call e-waste collection (see below)
• Conduct 2 public compost give-away events
per year providing city approved composting
equipment
Backyard or
Sideyard
Service
• Backyard service provided to customers at
an increased rate
• Backyard service provided to customers at
an increased rate
• Provided to disabled individuals at no
additional cost
• Include valet service for seniors
Household
Hazardous
Waste
(HHW)
• Sharps accepted at buy-back center or
through containers placed at up to 3
locations at City facilities (replace container
up to 10x per year)
• 2 free pharmaceutical collection events per
year
• Curbside household battery and cell phone
collection (sealed in clear plastic bag, on top
of recyclable materials cart)
• On-call E-Waste collection; 3 pick-ups per
year at no charge. Up to 5 items per pickup,
within 3 feet of curb (additional pick-ups or
oversize items accepted at buy-back center
at no charge)
• Sharps accepted at buy-back center or
through containers placed at up to 3
locations at City facilities (replace container
up to 10x per year)
• 2 free pharmaceutical collection events per
year
• Curbside household battery and cell phone
collection (sealed in fluorescent plastic
storage bag, in a communal location
arranged with the customer). cart)
• On-call E-Waste collection; 3 pick-ups per
year at no charge. Up to 5 items per pickup,
within 3 feet of curb (additional pick-ups or
oversize items accepted at buy-back center
at no charge)
June 9, 2020 Item #10 Page 34 of 286
Service Current MFD Service Requested MFD Base Services
Bulky Item
Collection
• On-call bulky item collection
• Customers must schedule pick-up by 5:00pm
o day before regular collection day
• 5 items per pick-up, placed within 3 feet of
curb
• 3 pick-ups per year at no charge; additional
pick-ups at rate set forth in agreement
• Prioritize reuse and recycling of salvageable
or recyclable materials before disposal
• On-call bulky item collection
• Contractor must provide service within 1 day
of customer’s requested service date
• 5 items per pick-up, placed within 3 feet of
curb
• 3 pick-ups per year at no charge; additional
pick-ups at rate set forth in agreement
• Must keep bulky items separate from solid
waste
• Contractor shall only dispose of materials
that cannot be reused or recycled
Illegal
Dumping
• Pick up and dispose of bulky items left
adjacent to public rights of way within 48
hours of notification from City
• Provide Container for City-conducted illegal
dumping clean-up. Provide Container within
48 hours of notification from the City.
Homeless
Encampments
• Not currently included in service • Provide clean-up service for homeless
encampments upon request from the City
Italics denote changes to existing services.
Alternative services are not listed in this table; refer to Section 3.2.
Figure 15: Commercial Collection Base Services
Service Current Commercial Service Requested Commercial Base Services
Recyclable
Materials
• At least 1x/week; as scheduled
by customer
• Collection location determined
by Contractor
• Bins (3- or 4-CY), Split-bins
(3CY), or carts (35-, 64- 96-
gallon)
• At least 1x/week, up to 6x/week, as scheduled by customer
• Curbside or other Customer-selected service location
• Carts (35-, 64-, and 96-gallon Carts; Bins (1-, 2-, 3-, 4-, 5-,
and 6- CY); Split-Bins (3-CY); Bin Compactors (2-, 3-, and 4-
CY); and, roll-offs (7-, 20-, 30-, and 40- CY)
June 9, 2020 Item #10 Page 35 of 286
Service Current Commercial Service Requested Commercial Base Services
Organic
Materials
• Yard trimmings only
• At least 1x/week; as scheduled
by customer
• Bins (3 CY) or carts (96 gallon)
• Voluntary subscription
• Collection method options to
be selected by customer,
choices are similar to collection
options for commercial solid
waste
• All organic materials (Yard Trimmings, Food Scraps, Soiled
Paper Products, Compostable Plastics, and Clean Wood)
• At least 1x/week, up to 6x/week; as scheduled by customer
• Curbside or other customer-selected service location
• Mandatory subscription/universal service
• Carts (35-, 64-, and 96-gallon); Bins (1-, 1.5-, and 2-CY); or,
Customer-owned Compactors
Solid Waste
• At least 1x/week; as scheduled
by customer
• Bins (3-, 4-, or 5-CY), split bins
(3-CY), compactors, or roll-off
boxes; or carts, if approved,
(35-, 64-, and 96-gallon carts -
at least 1x per week; no more
than 2 carts per premises per
week)
• Permanent roll-off/compactor
of 10-, 20-, or 40-CY. Customer
purchase or lease through
Contractor or other vendor
• May share bins between
adjacent commercial
customers, if approved
• Temporary collection service
upon customer request, using
bins or roll-offs.
• At least 1x/week, up to 3x /week; as scheduled by
customer
• Curbside or other customer-selected service location
• Carts (35-, 64-, or 96-gallon) carts; bins (1-, 2-, 3-, 4-, 5-,
and 6-CY); split-bins (3-CY); bin compactors (2-, 3-, and 4-
CY), and roll-offs (7-, 20-, 30-, and 40- CY); or customer
owned compactors
• May share bins between adjacent commercial customers,
if approved
• Temporary collection service upon customer request,
using bins or roll-offs.
Backyard or
Sideyard
Service
• Provided to customers at an
increased rate
• Provided to customers at an increased rate
Other
• Special services (roll-out,
locking containers, etc.) upon
customer request; at rates set
forth in the agreement
• Custom containers upon
request; at a rate agreed upon
by customer and Contractor
• 3CY C&D bin available
• See below for “other” services
• Special services (roll-out, locking containers, etc.) upon
customer request; at rates set forth in the agreement
• Custom containers upon request; at a rate agreed upon
by customer and Contractor
• 3 CY C&D bin available; customers with C&D bin must also
have a solid waste container
• See below for “other” services
June 9, 2020 Item #10 Page 36 of 286
Service Current Commercial Service Requested Commercial Base Services
Bulky-Item
Collection
• Bulky item pick-up provided at
rates set forth in agreement
• May not include over 1 CY
material generated from C&D
or remodeling activities
• Prioritize reuse and recycling of
salvageable or recyclable
materials before disposal
• Bulky item pick-up provided at rates set forth in
agreement
• May not include over 1 CY material generated from C&D
or remodeling activities
• Must keep bulky items separate from solid waste
• Contractor shall only dispose of materials that cannot be
reused or recycled
Illegal
Dumping
• Pick up and dispose of bulky
items left adjacent to public
rights of way within 48 hours
of notification from City
• Provide containers for City-conducted illegal dumping
clean-up. Respond and provide containers within 48 hours
of notification from the City
Included
Services for
City Facilities
(provided at no
charge to the
City)
• Recyclables, solid waste, and
organics(yard trimmings)
• Both temporary and scheduled
services. At least weekly, and
as frequently as scheduled by
the City
• Carts, bins, compactors, or roll-
off
• City may change service level
and number of facilities
without additional
compensation
• Provide containers and
collection at City-sponsored
projects and events
• Recyclables, solid waste, and organics (all organic
materials Yard Trimmings, Food Scraps, Soiled Paper
Products, Compostable Plastics, and Clean Wood)
• Both temporary and scheduled services. At least weekly,
and as frequently as scheduled by the City
• Carts, bins, compactors, or roll-off
• List of facilities receiving service, container types and
sizes, and frequency specified in agreement
• City may change service level and number of facilities
without additional compensation
• Provide containers and collection at City-sponsored
projects and events
• Provide bulk compost and mulch for the city and conduct
compost give-away events
Italics denote changes to existing services.
Alternative services are not listed in this table; refer to Section 3.2.
3.2 Scope of Services for Alternative Proposals
The City wants to evaluate the potential benefits and cost efficacy of several alternative services to
determine if they will be included in the scope of services for the future Contractor to implement. For
this reason, the proposer is required to consider each of the new services identified as “Required”
separately and present its approach to providing the service and incremental costs (or savings).
In addition, the City is interested in other innovative and/or cost saving approaches to providing the
requested services. Proposers are invited to provide incremental cost and operating information for the
services identified as “Optional”. The alternative services include the following:
1. SB 1383 Compliant Mandatory 3-Stream Collection for All Sectors (Required)
2. Organic Materials Processing (Required; Collection Services Proposal Not Required)
June 9, 2020 Item #10 Page 37 of 286
3. Extra Cardboard Collection (Required)
4. Single-Family Food Pails (Required)
5. Multi-Family Move-in Kits (Required)
6. Used Motor Oil & Filter + Used Cooking Oil Collection (Required)
7. Provide Containers for City Illegal Dumping Clean-ups (Required)
8. Bulk Compost and Mulch (Required)
9. Compost Give-Aways (Required)
10. Large Event & Venue Services (Required)
11. Prohibited Container Contaminant Monitoring (Required)
12. SB 1383 Compliant 4-Stream Collection (Required)
13. Other Service Enhancements and Innovations (Optional for either proposal)
Each service is generally described below, and described in more detail in the relevant section of the Draft
Franchise.
3.2.1 SB 1383 Compliant Mandatory 3-Stream Collection for All Sectors
(Required)
Under the existing franchise agreement, not all customers are required to subscribe to source-separated
recyclable materials or source-separated organic materials collection service. Proposers are required to
provide cost and operating proposal information for a service scenario which extends source-separated
recyclable materials, source-separated organic materials, and solid waste collection to all single-family,
multi-family, and commercial customers. This alternative is intended to comply with the programmatic
requirements of SB 1383 and each proposer shall, by submittal of their proposal, be responsible for
ensuring that all requirements of SB 1383 are met by the proposed programs, other than the City’s
obligation to provide enforcement.
Under this scenario, each and every customer (single-family, townhouse, multi-family, commercial, and
City facilities) would be required to source-separate their discards into three categories: recyclable
materials, organic materials, and solid waste, and would be required to subscribe to an adequate level of
service for each material type. The Contractor would be required to fully extend collection services for
each of these three material types to all single-family, multi-family, and commercial City facility customers
upon the effectiveness of the new Collection Agreement. Commercial customers may be eligible to apply
for exemptions to this requirement upon qualification for one of the SB 1383 approved exemptions (i.e.
space constraints or de minimis generation), however the Contractor shall be responsible for managing,
monitoring, and validating such exemptions and reporting them to the City regularly.
During program start-up, the Contractor would be required to conduct preliminary outreach to all
commercial and multi-family solid waste customers, to determine their requested recyclable materials,
organic materials, and solid waste container sizes and collection frequencies. The Contractor would then
automatically deliver recyclable materials and organic materials containers to each and every customer
(including townhouses, commercial and multi-family) at the same time that the Contractor delivers solid
June 9, 2020 Item #10 Page 38 of 286
waste containers, unless that customer was exempted from one or more of those services by the City, or
has demonstrated to the City that they will divert those materials through subscription with another City-
approved hauler, or other approved method.
The Contractor shall also be responsible for performing all container contamination monitoring, service
level tracking, education, outreach, recordkeeping, and reporting in order to assist the City in fulfilling the
jurisdictional and programmatic requirements of SB 1383.
3.2.2 Organic Materials Processing (Required; Collection Proposal Not Required)
In order to achieve the goals of AB 1826 and SB 1383, the City intends to contract for organic materials
processing services related to the material collected under the Collection Agreement. The City intends to
collect a commingled stream of yard trimmings and food scraps (including food soiled paper) from
residents and businesses. That stream shall be delivered to the selected Organics Processing Agreement
contractor directly from the route or through the Palomar Transfer Station.
Proposers may choose to propose to provide only processing services for organics materials. Under this
alternative, the processing-only proposer would not be required to submit a base proposal or the
required alternative described in Sections 3.2.1. Processing only proposers would only need to complete
cost proposal Form 1, and Form 7. Processing only proposers shall submit a complete proposal, except
that the technical proposal shall be limited to the elements described in Section 5.5.3.
All proposers wishing to provide collection services must include both collection and processing services
in their proposals, and must submit a base proposal and the required alternative proposals. Proposers
who submit integrated collection and processing proposals are not required to submit a separate
“processing only” proposal in order to have their processing facility considered even if they are not
awarded collection services. The City reserves the right to combine processing services proposed by one
proposer with collection services proposed by another proposer, at the proposed cost and rates. The City
may, for example, select one proposer for collection services and require the selected collection
Contractor to utilize an organics processing contractor who submitted an organics processing only
proposal. The City may also choose to select collection services from one integrated proposal and
processing services from a different integrated proposal. Pricing submitted for processing services
(either as part of a stand-alone or an integrated proposal) may not be contingent upon which proposer
is selected as the collector.
Proposers may not submit an integrated proposal and a stand-alone processing proposal with different
pricing for the same processing services. The City reserves the right to request separate final proposed
pricing for transport services, based on the available processing options and/or selected collection
service options, prior to final selection and contract award.
3.2.3 Extra Cardboard Collection (Required)
With the increased amount of cardboard in single-family and multi-family dwellings, the City is interested
in providing options for Customers to recycle excess volumes of cardboard in residential settings where
breaking that cardboard down to fit in a recycling cart may not be practical. This program is described in
the “Additional Services” portion of the Single Family Recyclable Materials Services (Draft Franchise
Exhibit B1, Section 1).
June 9, 2020 Item #10 Page 39 of 286
3.2.4 Single-Family Food Pails (Required)
As the City and selected Contractor implement residential food scraps recycling, the City is interested in
providing support to make the program more convenient to Customers. Other communities have
distributed food scrap pails to residents for this purpose. This requirement is described in the “Other
Requirements” portion of the Single-Family Organic Materials Services (Draft Franchise Exhibit B1, Section
2) and Multi-Family Organic Materials Services (Draft Franchise Exhibit B2, Section 2).
3.2.5 Multi-Family Move-in Kits (Required)
One of the City’s and Contractor’s most significant challenges under the new Agreement will be to make
multi-family recycling and organics services successful, despite the many challenges that exist in that
sector. One successful tool in other agencies has been the use of a “multi-family move in kit" (defined in
Draft Franchise Exhibit A) that introduces new multi-family tenants to how to recycle at their new property
and provides them with tools that improve convenience. The “multi-family move in kits” are described in
more detail in Draft Franchise Exhibit C, Section 4.
3.2.6 Used Motor Oil and Filter & Used Cooking Oil Collection (Required)
The City wishes to provide an environmentally friendly and convenient option for residents to dispose of
motor and cooking oils that they may generate through normal residential activities. These oils are
dangerous to the storm drainage and sewer systems and the City is interested in reducing their negative
impacts through this program. Customers would be provided with used oil recovery kits (defined in Exhibit
A) and the contractor would provide collection curbside, as needed by customers’, on the customers’
normal service day. The requirements of this program are described in Draft Franchise Exhibit B1, Section
4.
3.2.7 Containers for City Illegal Dumping Clean-ups (Required)
The City periodically performs targeted clean-up efforts with City crews or volunteers removing litter,
illegal dumping, homeless encampment debris, or other materials from public spaces. These clean-ups
often require the donation of bins or roll-off boxes to facilitate removal of waste from the events. As
described in Draft Franchise Exhibit B5, the City is interested in having the successful contractor donate
the containers needed for up to five (5) such clean-up events per year.
3.2.8 Bulk Compost & Mulch (Required)
SB 1383 requires that the City procure a specified quantity of recovered organic products (meeting the
applicable guidelines for “California Recovered” as described in SB 1383). It is possible that the City may
need to receive and use or distribute significant quantities of compost or mulch to meet this procurement
requirement if other means (e.g. RNG, electricity, etc.) are not feasible. As such, the City wishes to have
the successful contractor provide a bulk compost and/or mulch give-back program totaling 2,000 yards of
materials for use or give-away by the City. This program is described in Draft Franchise Exhibit B4, Section
5.A-B.
June 9, 2020 Item #10 Page 40 of 286
3.2.9 Compost Give-Away (Required)
In addition to or, perhaps, in place of the bulk compost/mulch program described above, the City may be
interested in working with the successful contractor to perform community events to give-away retail
quantities of compost or mulch that assists in meeting the SB 1383 procurement requirement. In addition,
the give-back program with the community may reinforce the “closed loop” messaging supporting the
organics program. This program is described in Draft Franchise Exhibit B4, Section 5.C.
3.2.10 Large Event and Venue Services (Required)
The City is interested in implementing recycling and organics services in public spaces, to support the
overall program implementation and to “walk the talk” at City events. This is consistent with the approach
adopted in the City’s Sustainable Materials Management Plan, where the City’s environmental leadership
is one of the early implementation items. The City is interested in having the successful contractor support
specified City events and venues with enhanced materials management services. This program is
described in full in Draft Franchise Section 4.5 for the events listed in Exhibit B5.
3.2.11 Prohibited Container Contaminant Monitoring (Required)
SB 1383 requires the City to implement a process for monitoring and managing the contamination levels
of the various services provided to generators. The City is interested in having the selected contractor
take the primary responsibility for performing, documenting, and educating customers about
contamination in a manner that both complies with SB 1383 and improves the overall success of the
recycling and organics programs in the City. This program and its minimum requirements are presented
in Draft Franchise Section 4.12.
3.2.12 SB 1383 Compliant 4-Stream Collection (Required)
Proposers must present their approach to a four stream collection system (Recyclable Materials, Yard
Trimmings, Source Separated Food Waste, and Solid Waste), as noted in the Draft Franchise Agreement.
This alternative is intended to provide options for a collection system in the event that the City must
separately process food waste from yard trimmings. The proposed program must comply with the
programmatic requirements of SB 1383.
3.2.13 Other Service Enhancements and Innovations (Optional)
Proposers are also invited to submit one or more proposals for additional service enhancements,
innovations, or cost-saving approaches. Such alternatives may include collection methods, equipment
requirements, customer service approaches, or other changes from the City-requested specifications that
the Contractor believes achieve the goals of the RFP, maintain regulatory compliance, and deliver cost-
effective services to the City.
June 9, 2020 Item #10 Page 41 of 286
3.3 Labor Policy
3.3.1 Employee Retention
The City is aware of AB 1669 regarding bidding preferences for companies proposing to hire the displaced
employees of the previous Contractor. As described in this Section 3.3.1, the City will be requiring all
proposers to make such offers of employment. Therefore, no preference will be awarded based on this
condition.
The City is seeking the following employment conditions for the selected Contractor:
1. The City’s future Contractor shall offer employment under the new Franchise Agreement to
existing employees working under the current franchise agreement who become unemployed by
reason of the change in Contractors. However, the future Contractor shall not be obligated to
offer employment to more existing employees than the future Contractor needs to perform the
services required under the new Franchise Agreement and the Contractor shall not be obligated
to offer employment to existing employees that are not working prior to the commencement date
due to a leave of absence related to disability or workers’ compensation claim. Additionally, the
Contractor shall not be obligated to displace any of its current employees or modify its current
job performance requirements or employee selection standards. Additional employees, if
needed, shall be obtained pursuant to procedures currently in effect under the collective
bargaining agreement with the current solid waste collection Contractor. This requirement,
however, shall not be applicable to management or supervisory personnel.
2. Wages and benefits applicable to employees performing work under the new Franchise
Agreement shall be commensurate with current compensation or in accordance with existing
agreements with represented labor groups.
3. The Contractor may enter into agreement(s) with subcontractors to provide services covered in
the Draft Franchise Agreement subject to the prior written consent of the City as stated in Section
3.3 of the Draft Franchise Agreement. Subcontractors shall be required to comply with the
obligations stated in paragraphs (1) and (2), above.
4. Labor agreements must be included as attachments to the Draft Franchise Agreement and future
modification shall be submitted to the City.
3.3.2 Labor Peace
The health and safety considerations involved in a possible interruption in the collection and processing
services requested through this RFP emphasize the importance of labor peace during the term of the
contract award. Accordingly all proposals submitted in response to this RFP shall include agreement that
the proposer will remain entirely neutral in the event that a question of employee representation arises
during the term of the Franchise Agreement.
Notwithstanding the provisions of AB 1669, the Contractor may enter into agreement(s) with
subcontractors to provide services covered in the Draft Franchise Agreement subject to the prior written
consent of the City as stated in Section 3.3 of the Draft Franchise Agreement. Subcontractors shall be
June 9, 2020 Item #10 Page 42 of 286
required to comply with the obligations of this Section 3.3. Labor agreements must be included as
attachments to the Draft Franchise Agreement and future modification shall be submitted to the City.
3.4 Collection Vehicles and Containers
At a minimum, collection vehicles shall meet the most recent State of California Air Resources Control
Board regulations for “Diesel Particulate Matter Control Measure for On-Road Heavy-Duty Residential and
Commercial Solid Waste Collection Vehicle Diesel Engines.” In developing a proposal and associated costs,
proposers shall assume that collection vehicles will need to comply with all applicable emissions standards
and laws not only at commencement of the agreement but also throughout the term of the Franchise
Agreement. Proposers will be required to submit a Vehicle Air Emissions Plan per Section 5.5.12 of the
RFP. The City’s strong preference is to utilize a fleet that allows the City to comply with the SB 1383
requirements for recovered organic product procurement through RNG vehicle fuels. Contractor shall
identify whether such credits can be made available to the City through this process and the amount of
credits/fuel usage associated with this contract.
The selected Contractor will be required to provide all new collection vehicles and containers. Proposers
shall assume an average vehicle and container life of ten or more years and plan to depreciate vehicles
and containers over a 10-year period for the purposes of determining depreciation and interest expenses.
At the end of the new Franchise Agreement, the Contractor will need to assume responsibility for any
remaining book value of the equipment and turn ownership of containers over to the City (at City’s sole
option, noting that the City will not be obligated to assume ownership of such containers).
3.5 Corporation Yard
The City requires that all proposers identify a site or potential sites to be used for staging equipment and
personnel, and performing equipment maintenance. The City is not requiring that such site(s) be located
within the City limits.
3.6 Subcontractors
The future Contractor may enter into agreements with subcontractors to provide services requested in
the RFP subject to the prior written consent of the City. All insurance documents must be reviewed and
approved by the City’s Risk Manager prior to City acceptance. Subcontractor arrangements are to be
disclosed in the proposal. Agreements with the subcontractor(s) must meet the requirements of the level
and type of insurance specified in Article 9 of the Draft Franchise Agreement.
3.7 Municipal Code Revisions
The changes to the existing collection arrangements proposed by the City may require revisions to the
City’s Municipal Code. It is anticipated that the Code will be revised prior to the effective date of the new
Franchise Agreement.
3.8 Reimbursement of Procurement Costs
The selected proposer will reimburse City for the City’s procurement-related expenses (including, but not
limited to, staff time, legal costs, and consulting fees). The reimbursement payment will be made by the
selected proposer within five (5) days of the execution date of the new Franchise Agreement. The
June 9, 2020 Item #10 Page 43 of 286
reimbursement expense of $300,000 shall be paid by the Contractor and may not be recovered through
its annual compensation under any agreement awarded in response to this RFP.
June 9, 2020 Item #10 Page 44 of 286
SECTION 4: RFP CONDITIONS AND PROPOSAL SUBMITTAL
4.1 Rights Reserved by the City
The City reserves the right, in its sole discretion, to pursue any or all of the following actions in regard to
this RFP process:
• Issue addenda and amend the RFP and Draft Franchise Agreement;
• Request additional information and/or clarification from proposers;
• Extend the deadline for submitting proposals;
• Allow for the timely correction of errors and waive minor deviations;
• Withdraw this RFP;
• Reject proposals that do not fully comply with the requirements detailed in this RFP, its
attachments, addenda, or clarifications;
• Reject incomplete proposals; proposals containing errors, inconsistencies, false, inaccurate or
misleading information; proposals submitted after the deadline; and/or, proposals with other
process or content errors or deficiencies;
• Reject a proposal if it is not in the best interest of the City and its residents and businesses;
• Award the new Franchise Agreement to a proposer based on a combination of its qualitative and
quantitative attributes;
• Award the new Franchise Agreement to a proposer without further discussion or negotiation;
• Negotiate changes in the services proposed and/or described in the RFP or to incorporate
programs proposed by others; and negotiate changes to the Draft Franchise Agreement;
• Combine processing services proposed by one proposer with collection services proposed by
another proposer, at the proposed rates;
• Negotiate with the selected Contractor for a later commencement date;
• Issue subsequent RFP(s) for the same, similar, or related services at a later date;
• Amend the City Municipal Code; and,
• Take any other actions the City deems are in the best interest of the City, its residents, and/or
businesses.
4.2 Conflict of Interest & Prohibited Contracts
No person performing services for the City, in connection with the establishment of any agreements or
any projects resulting from this solicitation, shall have a financial or other personal interest other than
employment or retention by the City, in any contract or subcontract in connection with this solicitation or
any resulting project. No officer or employee of such person retained by the City shall have any financial
June 9, 2020 Item #10 Page 45 of 286
or other personal interest in any real property acquired for this list or resulting project, unless such
interest is openly disclosed upon the public records of the City and such officer, employee, or person has
not participated in the acquisition of such property for or on behalf of the City.
The City shall not contract with, and shall reject any proposal submitted by the persons or entities
specified below, unless the City Council finds that Special Circumstances exist which justify the approval
of such a contract.
• Persons employed by the City or public agencies for which the City Council are the governing body;
• Profit-making firms or businesses in which employees described in this solicitation serve as officers,
principals, partners or major shareholders;
• Persons who, within the immediately preceding twelve (12) months, came within the provisions this
solicitation and who (1) were employed in positions of substantial responsibility in the area of service
to be performed by the contract, or (2) participated in any way in developing the contract or its service
specifications;
• Profit-making firms or businesses in which the former employees described in this solicitation serve
as officers, principals, partners or major shareholders; and
• Person who currently serve on a city Board or Commission per CMC 2.15.030.
By submitting a proposal for any services identified herein, Proposer is certifying that the proposer firm
has complied with the above provisions, and that any ensuing contract will be valid.
4.3 General RFP Agreements
This RFP shall not be construed by any party as an agreement of any kind between the City, Contractor(s),
and other parties.
This RFP does not obligate the City to accept any proposal, negotiate with any proposer, award a franchise
agreement, or proceed with the development of any project or service described in response to this RFP.
The City has no intention or obligation to compensate any proposer for its expense of preparing its
proposal and participating in this procurement process.
Submission of a proposal shall constitute acknowledgment and acceptance of all the terms and conditions
contained in this RFP and Draft Franchise Agreement, including all addenda or amendments issued by the
City per the schedule provided in this RFP with the exception that proposers may take exceptions to the
RFP and Draft Franchise Agreement in accordance with Section 5.8 of this RFP. Submittal of a proposal
signifies proposer’s commitment to provide the proposed services, if selected. Contractor shall be bound
by the proposal they submitted. Proposals may not be altered after submittal, except in response to the
City’s request for clarification. In addition, all aspects, conditions, and components of proposals submitted
shall be valid for one year from the date of submission.
The City shall have the right (but not the obligation) to perform a review of any one, or each, proposer's
ability to perform the work required. Each proposer must agree to cooperate with such a review, as a
failure to do so may result in the immediate disqualification of the Proposal(s) submitted by Contractor
Such cooperation by proposer shall apply to the verification of the proposer's capability and experience
June 9, 2020 Item #10 Page 46 of 286
in the provision of services and any other component of work that may be required under this
procurement.
The City may conduct reference checks on proposers that involve contacting municipalities currently or
previously served by proposer, as well as contacting regulatory agencies involved in oversight of
proposers’ facilities. In addition, the City or its consultants may research proposers’ past performance by
reviewing litigation history, regulatory actions, highway driving records, and recycling history. The
proposer’s submission of a proposal shall constitute an agreement to cooperate with the City’s review.
The City will only enter into Agreements which will enable the City to comply with all applicable State
mandates including, but not limited to: AB 939, AB 341, AB 1826, and SB 1383.
4.4 Proposal Submittal Process
Companies submitting proposals to the City shall follow the procedures described in this Section 4.4 and
the procedures included in subsequent clarifications or addendums to this RFP, which are issued by the
City or its consultant.
4.4.1 Step One – Register for Correspondence, RFP, and Announcements
PROPOSERS MUST BE PRE-REGISTERED with the City’s bidding system
(https://www.carlsbadca.gov/services/depts/finance/contracting/default.asp) and possess a
system-assigned Digital ID in order to submit and electronic proposal. After using the link above, all
proposers will be able to register as a “new vendor” through the PlanetBids link on the City’s website.
Proposer must request that it be placed on the RFP Distribution List in order to receive the link to
the RFP Web Page, future correspondence, and announcements related to this RFP. The deadline
for submitting a request to be included in this RFP process is July 3, 2020 (provided that the party
attended the mandatory pre-proposal meeting described in Section 4.4.3). Proposers that fail to
register by the specified deadline shall be excluded from this RFP process.
Proposer must email said request to:
SustainableMaterialsManagement@CarlsbadCA.gov
The final RFP Distribution List will include all persons who attend the pre-proposal meeting, and those
requesting to be added to the RFP Distribution List, pursuant to this Section 4.4.1.
4.4.2 Step Two – Submission of Written Questions
The City directs proposers to submit all questions and requests for information in writing directly to its
dedicated email address, and refrain from contacting City employees or elected officials directly.
Therefore, any questions, requests for clarification, or requests for additional information regarding this
RFP must be submitted in writing via email to SustainableMaterialsManagement@CarlsbadCA.gov.
Questions submitted on or before 3:00 p.m., June 23, 2020 will be addressed at the pre-proposal meeting.
Proposers may submit additional questions on or before 5:00 p.m., July 3, 2020. The City will respond to
all written questions and requests for clarifications submitted by proposers by July 24, 2020. Such
response will be in writing and made available via the City’s RFP Web Page, with notification to the RFP
Distribution List.
June 9, 2020 Item #10 Page 47 of 286
4.4.3 Step Three – Mandatory Pre-Proposal Meeting
The mandatory pre-proposal meeting will be held at 1:00 p.m., on June 30, 2020. Attendance at this
meeting is mandatory. The City may, but is not obligated to, reject proposals received from proposers
that do not attend the pre-proposal meeting. Proposers are encouraged to submit questions in advance
of the meeting (in accordance with Section 4.4.2) or prepare and pose questions at the pre-proposal
meeting. Preliminary oral responses to questions will be provided at the discretion of City staff at the pre-
proposal meeting.
Written responses to questions will be provided to all eligible proposers (those companies that registered
pursuant to Step One and attended the pre-proposal meeting). In the event of any inconsistencies
between oral responses provided at the pre-proposal meeting and written responses subsequently issued,
the written responses must be used by proposers for the purpose of preparing proposals.
4.4.4 Step Four – Proposal Submittal
By submitting a proposal, all Proposers agree to, and certify under penalty of perjury, under the laws of
the State of California, that the certification, forms, and affidavits submitted as part of this proposal are
true and correct.
In order for a Proposal to be deemed complete, proposers must submit the following:
1. Six (6) bound double-sided copies of the complete proposal. Proposals must be printed
on 8½ inch by 11 inch 100% post-consumer recycled content paper.
2. A flash drive, computer disk, or other generally accepted electronic storage device
containing:
i. A PDF of the technical proposal;
ii. A copy of all completed cost proposal forms (i.e., those provided in Attachment 3
of the RFP) formatted for the PC version of Microsoft Excel; and,
iii. A copy of the Draft Franchise Agreement in track-changes mode formatted for
the PC version of Microsoft Word.
3. The complete Proposal packet (as identified in Section 4.4.4(2)), in an electronic format
through the City of Carlsbad’s electronic bidding (eBidding) site at City of Carlsbad -
Contracting & Purchasing (Note: You will find a link to PlanetBids). The system will not
accept a proposal for which any required information is missing.
i. The City’s proposal/electronic bidding (eBidding) system will automatically track
information submitted to the site including IP addresses. In addition, the City’s
bidding system will keep a history of every login instance including the time of
login, and other information about the user's computer configuration. Proposers
who disable their browsers’ cookies will not be able to log in and use the City’s
bidding system.
June 9, 2020 Item #10 Page 48 of 286
ii. Important Note: Submission of the electronic proposal into the system may not
be instantaneous. Due to the speed and capabilities of the user’s internet service
provider (ISP), bandwidth, computer hardware and other variables, it may take
time for the proposer’s submission to upload and be received by the City’s
eBidding system. It is the proposer’s sole responsibility to ensure their proposals
are received on time by the City’s eBidding system. The City of Carlsbad is not
responsible for proposals that do not arrive by the Due Date and Time.
All pages shall be consecutively numbered; although, each section may start with a new page number if
proceeded with the section number (e.g., Page 2-1 for the first page of Section 2).
The package shall be clearly labeled:
PROPOSAL FOR CARLSBAD COLLECTION AND PROCESSING SERVICES
Name of Proposer:
Address:
Contact Person:
Telephone Number:
E-mail:
The proposal may be mailed or hand delivered to:
City of Carlsbad
Attn: Environmental Manager, Public Works
1635 Faraday Ave
Carlsbad, CA 92008
All proposals must be received by 3:00 p.m. on September 10, 2020. All proposals shall remain sealed
until due date and time, and Proposals may be withdrawn by the proposer prior to but not after such
time. Proposals received after this time and date may be rejected. Postmarks will not be accepted as proof
of receipt. Once the deadline is reached, no further submissions are accepted into the system.
Upon receipt by the City, proposals shall become public records subject to public disclosure. It is the
responsibility of the Proposer to clearly identify any confidential, proprietary, trade secret or otherwise
legally privileged information contained within the proposal’s (general references to sections of the
California Public Records Act (PRA) will not suffice). If the Proposer does not provide applicable case law
that clearly establishes that the requested information is exempt from the disclosure requirements of the
PRA, the City shall be free to release the information when required in accordance with the PRA, pursuant
to any other applicable law, or by order of any court or government agency, and the Proposer agrees to
hold the City harmless for any such release of this information.
Once the Due Date and Time has passed, proposers, the general public, and City staff are able to
immediately see the results on line. City staff may then begin reviewing the submissions for responsiveness,
compliance and other issues.
Each proposal must be accompanied by surety made payable to the City of Carlsbad in the amount of
$25,000 and in the form of a certified check, cashier’s check, or bid bond. The surety shall be submitted
with the proposal in a separate, clearly labeled envelope. The purpose of the surety is to guarantee that
June 9, 2020 Item #10 Page 49 of 286
the successful Contractor will execute a new Franchise Agreement with the City. If the selected Contractor
does not execute the new Franchise Agreement within 30 calendar days after receiving notice of the
award of new Franchise Agreement, the City may keep the surety to offset the potential cost associated
with identification of an alternate service provider and schedule delays and has the right to pursue
additional and reasonable costs incurred by the City in this event. Checks and bonds will be returned to
all proposers no later than 10 calendar days after the City has executed the new Franchise Agreement
with the successful Contractor.
4.4.5 Step Five – Clarification of Proposal Information
Proposer may be asked to clarify information through written or verbal communications, or during site
visits of each proposer’s offices; customer service center; corporation yard and maintenance facilities;
and, transfer and processing facilities. This clarification process may involve requesting that the proposer
demonstrates how financial, customer service, and management information systems can provide reports
required by the Draft Franchise Agreement. The clarification process may be performed by City staff
and/or their consultants.
4.4.6 Step Four – Proposer Interviews & Negotiations
One or more proposers are likely to be invited to meet with City staff and its consultant in September
2020. The purpose of these meetings is to: 1) receive a presentation of the proposals; and, 2) engage in
preliminary negotiations on any exceptions taken to the terms of the Draft Franchise Agreement. The City
reserves the right to incorporate any written clarifications, presentations, or other supporting
documentation into the Draft Franchise Agreement as a material element of the Draft Franchise
Agreement.
Time is of the essence in the procurement of these services; therefore, the negotiations will be limited to
those items identified in the company’s proposal as exceptions to the Draft Franchise Agreement. Each
proposer is required to submit a redline/strikeout version of the Draft Franchise Agreement, in
Microsoft Word format, noting any deletions of franchise language or requirements as well as all proposed
replacement or new language. The City will not discuss any changes to the Draft Franchise Agreement
that are not clearly presented in the proposal.
The City expects that the selected proposer(s) will make themselves available promptly to start the
negotiations process and will negotiate expeditiously and in good faith to ensure a prompt resolution to
the process. The City may choose to negotiate final agreements with more than one proposer in order to
bring final, proposer-executed, agreements to the City Council for their approval. The determination to
negotiate agreements prior to consideration by the City Council will be at the sole discretion of the City’s
staff and consultant.
4.4.7 Step Five – Contractor Selection
City staff and its consultant will present the results of the RFP and negotiations process to the City Council
for their consideration. The City Council may, in their sole discretion:
1. Award a contract to the recommended proposer;
2. Award a contract to a proposer other than the recommended proposer;
June 9, 2020 Item #10 Page 50 of 286
3. Direct staff and the recommended proposer to negotiate further;
4. Direct staff to negotiate with additional or replacement proposers;
5. Cancel and/or restart this process; or,
6. Take any other action they deem in the best interest of the City.
June 9, 2020 Item #10 Page 51 of 286
SECTION 5: PROPOSAL SUBMITTAL REQUIREMENTS
Section 5 includes the required proposal outline and a description of the specific information proposers
must include. Failure to provide all the required information may be grounds for rejection of a proposal.
5.1 Proposal Outline
Proposer shall present its proposals in accordance with the outline provided in Figure 16. Items that are
not required elements of the proposal are noted as “Optional.” At proposer’s option, the proposer may
include additional information or data on other relevant topics or more detail on the information
requested herein that is relevant to the proposal. Any additional information shall be included as
attachments to the proposal.
Figure 16: Proposal Outline
i. Title Page
ii. Cover Letter
iii. Table of Contents
ES Executive Summary
1. Company Description
A. Business Structure
B. Collection Experience
C. Service Initiation Experience
D. Key Personnel
E. Labor Agreements and Wages
F. Past Performance Record
G. Financial Information
2. Technical Proposal for Base Proposal
A. Collection
B. Recyclable Materials Processing
C. Organic Materials Processing
D. Solid Waste Transfer (if proposed)
E. Bulky Item Collection
F. Multi-Family/Commercial Recycling Technical Assistance
G. Customer Service
H. Billing
I. Public Education and Outreach Plan
J. Implementation Plan
K. Other Required Plans
L. Subcontractors
June 9, 2020 Item #10 Page 52 of 286
M. Existing Management and Customer Service Systems
N. Corporation Yard and Maintenance Facilities
3. Technical Proposal for Alternative Services
A. Mandatory 3-Stream Collection for All Sections (Required)
B. Processing Only (Optional)
C. Other Service Enhancements and Innovations (Optional)
4. Environmental Considerations
5. Acceptance of RFP and Franchise Agreement
6. Cost Proposal
A. Base Cost Proposal
B. Cost Proposal for Alternative Services
7. Other Proposal Forms
A. Secretary’s Certificate
B. Anti-Collusion Affidavit
C. Iran Contracting Act Certification
D. Statement of Compliance with the City of Carlsbad’s Insurance Requirements
Attach. Additional material may be included at proposer’s discretion (Optional)
5.2 Cover Letter
The cover letter shall clearly identify the legal entity(ies) submitting the proposal and state whether each
entity is a sole proprietorship, partnership, corporation, or joint venture. The cover letter shall be signed
by the designated representative authorized to bind proposer as documented on the Secretary’s
Certificate to be submitted in accordance with Section 5.10.1. In the cover letter, proposer shall
acknowledge all addenda to the RFP it received by providing a list of the addendum and date of issuance.
5.3 Executive Summary
Proposer shall provide an executive summary to introduce its proposal; present its strategy and costs; and
highlight unique aspects of its approach to servicing the City. The executive summary can be used to
highlight any additional programs, service enhancements, or other innovations proposed.
5.4 Company Description
5.4.1 Business Structure
In its proposal, proposer shall:
1. Confirm that proposer is authorized to conduct business in California;
June 9, 2020 Item #10 Page 53 of 286
2. Identify the legal entity that would execute the new Franchise Agreement. State whether each
entity is a sole proprietorship, partnership, corporation, or joint venture. Describe in detail the
relationship of the proposer to the executing entity. If the proposer is a joint venture, describe
where the entities have collaborated before;
3. State the number of years the entity(ies) have been organized and doing business under this legal
structure. Proposal must include all the names of company’s (and executing entities’ if different
than company’s) owners/stockholders with greater than a 10% holding and creditors owed a debt
greater than 10% of the company's total assets;
4. Identify other businesses with ownership by principals and/or management; and,
5. Describe all services to be performed by subcontractors, and identify each subcontractor by
name. Proposer shall describe any current or past working relationship with the subcontractor(s)
in the past five years.
5.4.2 Collection Experience
Proposer must describe its experience serving jurisdictions in California (preferably serving jurisdictions
of similar or larger size and similar demographics to the City). Proposer’s description for each comparable
jurisdiction shall include:
1. The name of the jurisdiction where the services were provided, commencement date of services
and term of the agreement;
2. The service provided (e.g., solid waste collection, recyclable materials collection, organic materials
collection, materials processing, and other unique collection and/or processing programs at
proposer’s discretion such as those for e-waste, u-waste, or household hazardous waste);
3. The name, address, and telephone number of the jurisdiction’s representative responsible for
administering the agreement; and,
4. The number of single-family, multi-family, and commercial customers served.
5.4.3 Service Initiation Experience
The City is interested in learning about each proposer’s experience with implementation of new franchise
agreements and new programs (such as roll-out of food scraps service for multi-family and commercial
customers, multi-family on-call clean-up and bulky service, etc.). Include a minimum of three reference
projects for which the proposer has initiated a new collection contract and/or new collection services. For
each reference program, the description shall include:
1. The name of the jurisdiction where the services were provided and commencement date and
term of the agreement;
2. The service initiation performed (i.e., initiation of a new franchise agreement, universal roll-
out/distribution of recycling service to all multi-family and commercial accounts, multi-family and
commercial food scraps collection, etc.);
June 9, 2020 Item #10 Page 54 of 286
3. The name, address, and telephone number of the jurisdiction’s representative responsible for
administering the agreement;
4. The number of residential and commercial customers served;
5. Description of how the company handled the specific requirements for the procurement of
vehicles and personnel; training of personnel; billing and fee collection services; determination of
routes and operating procedures; delivery of containers; public education; and the preparation of
procedures to ensure a smooth transition from one company to another and one type of service
to another; and,
6. Identification of problems that occurred during the initiation of the new contract and solutions
implemented to solve the problem(s).
5.4.4 Key Personnel
Provide an organization chart for key personnel. Identify key personnel the proposer plans to assign to:
(1) the transition team; and, (2) the ongoing management of the services provided under the Draft
Franchise Agreement. At a minimum, provide the names, contact information, job description, and
qualifications for the following key personnel:
• Regional Manager
• General Manager
• Contract Relations/Compliance Manager
• Operations Manager
• Customer Service Manager
Also provide the name, contact information and qualifications for the person who will serve as the primary
contact person for the City during the term of the new Franchise Agreement. If specific individuals have
not been identified for one or more positions, provide the job description and/or hiring criteria that will
be used to select the individual.
5.4.5 Labor Agreements and Wages
Proposer shall identify the jurisdiction(s) in which its employees are currently represented by labor
organizations and the names of each labor organization. In addition, proposer shall identify its plan for
arranging labor if they are selected to provide collection and processing services in the City. Specifically,
proposer shall confirm its acceptance of the terms of the labor policies described in Section 3.3 of the RFP,
and identify the labor organization(s) the proposer will work with, along with the nature of the collective
bargaining agreement(s). If services will be provided under an extension or renewal of an existing labor
agreement, proposer must provide a copy of the full agreement including all amendments, extensions,
and/or renewals. If new labor agreement(s) will be negotiated prior to the commencement of the new
Franchise Agreement, proposer must provide a memorandum of understanding between the labor
organization and company outlining the terms and conditions of the agreement, wage rates, employee
benefits, and work rules. Pursuant to the requirements of Section 3.3 of the RFP, identify if, and how the
June 9, 2020 Item #10 Page 55 of 286
proposed plans, wages, benefits, and/or work rules differ from the labor agreements in place for
employees currently serving the City and employed by CWM.
5.4.6 Past Performance Record
1. Litigation and Regulatory Actions. Describe past and pending civil, legal, regulatory, and criminal
actions (including arrests, indictments, litigation, grand jury investigations, etc.) now pending or
that have occurred in the past five (5) years against key personnel (as identified by the proposer
in Section 5.4.4), proposing entity, its parent company, and all subsidiaries owned by proposing
entity, including any proposed subcontractors.
2. Payment of Fines, Penalties, Settlements, or Damages. Provide a statement disclosing any and all
fines, penalties (including liquidated damages or administrative fees), settlements, or liquidated
damages of any kind paid by proposer, its parent company, subsidiaries, and any proposed
subcontractors, to any public agencies in the past five (5) years. This shall include any penalties,
fee payments, settlements, or any other form of consideration related to the proposer’s failure
to achieve diversion requirements or any other stated performance standard of a contract with a
public agency. For each payment, list the amount the company has paid, the name of the
jurisdiction to which damages were paid, and the event(s) which triggered the damages. Identify
what personnel and/or policy changes the company made in response to such incidents (e.g.,
terminated or reassigned employees involved, new process protocols, etc.).
3. Satisfactory performance in other agreements. Provide a list of all other agencies where similar
franchise collection or processing services are performed by Contractor along with contact
information for that agency’s contract manager. The City reserves the right to conduct reference
checks and satisfaction interviews with any current or past municipal agencies that proposer
discloses or City determines the proposer has contracted with previously.
With regard to the items requested in this Section 5.4.6, proposers who operate in multiple states with
independent management structures need only report such actions relative to the operations in
California. Similarly, proposers who operate landfill facilities need not disclose information about those
facilities, as they are beyond the scope of the services requested here.
Note: The occurrence of past or pending civil, legal, regulatory, or criminal actions does not automatically
disqualify a company from participating in this process. However, failure to report such actions, whether
discovered before or after City executes the new Franchise Agreement, shall be considered a material
omission and may form the basis for disqualifying a proposer or terminating the new Franchise
Agreement. Material omissions may constitute fraud in the inducement of a public contract, and if such
omissions are discovered, the City reserves all rights and remedies available under the law.
5.4.7 Financial Information
1. Financial Statements. Submit audited financial statements for the most-recently completed fiscal
year for the legal entity(ies) that would execute the new Franchise Agreement. All such
statements are to be prepared in accordance with Generally Accepted Accounting Principles
applied on a consistent basis and shall be audited in accordance with Generally Accepted Auditing
Standards by an Accountant certified in the State of California and shall include a statement by
June 9, 2020 Item #10 Page 56 of 286
the chief financial officer (CFO) of the entity(ies) that there has been no material adverse change
in such condition or operations as reflected in the submitted balance sheet and income
statements since the date on which they were prepared. To the extent allowable under the
public records act, the City will maintain the confidentiality of submitted materials marked as
“confidential”.
2. Financing Plan. Describe the plan for financing all capital requirements (i.e., those listed on Cost
Proposal Form 4) in a "Sources and Uses of Funds" format, which describes the sources of
required capital (e.g., banks, leasing companies, cash reserves, etc.) and uses (e.g., property,
trucks, equipment, containers, reserves, etc.). Attach supporting documents (e.g., letters from
banks or leasing companies) that demonstrate your ability to implement the financing plan.
5.5 Technical Proposal for Base Services
Proposer shall describe how it plans to perform the collection and processing services requested in Section
3 of this RFP and described in the Draft Franchise Agreement. When presenting information requested
herein, proposer shall explain the method of delivering the services, equipment selected, routing
strategies, and collection and processing methods. The description shall also note differences (for
different customer types) in terms of routing strategies, collection methods, vehicles, collection crew size,
etc. In addition, proposer must describe in detail why its technical approach to the services was chosen,
and its advantages to the City.
If a proposer has presented information for one type of service that is the same for another type of service,
proposer may refer to its previous description rather than reiterating the discussion in its proposal. For
example, if single-family solid waste and recyclables collection vehicles are the same, the vehicle
description can be provided once for the solid waste service and then referenced for the recyclable
materials collection service.
5.5.1 Collection
Proposer shall describe how it plans to perform the collection services requested in the RFP and described
in the Draft Franchise Agreement. Specifically, information should address solid waste, recyclable
materials, and organic materials collection for each single-family services, multi-family services,
commercial services, and roll-off and compactor services (as applicable). In the event that the proposed
collection methodology from one customer/material type to the next is largely the same, proposer may
identify this, and highlight the differences between the proposed approaches, as opposed to repeating
the same information multiple times. Proposer shall also describe how it plans to perform bulky item,
used oil, battery, holiday tree, and any other non-routine collection operations required by the Draft
Franchise Agreement. Proposers shall also identify how tonnage will be allocated between customer types
(e.g. single-family, multi-family, commercial, etc.) in the event that multiple customer types are collected
on a single route (e.g. organic materials cart service route). Include at a minimum:
• Collection methodology;
• Equipment to be utilized (e.g., equipment/vehicle description, number, types, cost, capacity, age,
etc.);
• Standard crew size; and,
• Number, types, sizes, and manufacturer’s specifications of containers to be utilized;
June 9, 2020 Item #10 Page 57 of 286
If the proposed methodology or equipment relies on co-collection vehicles, split containers, or an
uncommon method, proposer must provide the names of jurisdictions where the proposed
equipment/method is currently being used as it is proposed. Also, describe in detail how this collection
technology will work, why it was chosen for the City, and how it will benefit and work in the City
specifically.
5.5.2 Recyclable Materials Processing
The following information is required for recyclable materials processing services:
1. Processing Site Information. Name, location, and description of the processing facility(ies) where
recyclable materials will be handled; name of owner and operator of the facility(ies); contact
name and phone number of the site manager; description of processing methods including a
detailed description of the technology used and the operators’ ongoing approach to adapting
technology to evolving recycling streams; method of tracking tonnage if the facility is receiving
tonnage from other jurisdictions; and, the current average monthly residue level of the processing
site. Identify if the company that owns or operates the processing site is the same as the
proposing entity, a related-party entity, or a subcontractor.
2. Permits and Regulatory Compliance. Provide contact names for the regulatory agencies that
monitor the processing facility’s compliance with applicable local, State, and federal laws and
regulations. For each contact, provide the name of the regulatory agency, the contact person’s
name, title, and telephone number.
3. Available Processing Capacity. Provide a written commitment guaranteeing capacity for the
recyclable materials collected under the new Franchise Agreement throughout the term of the
Agreement. If proposer is not the owner or operator of the facility, proposer is to provide a letter
of commitment from the processing facility owner to comply with this RFP requirement.
4. Import Restrictions or Fees. List any import restrictions, taxes, or fees that will be applicable to
the receipt of the City's recyclable materials. Discuss the ability of the host jurisdiction or state to
increase or levy taxes, host fees, or other fees. If there is an import restriction on accepting
materials from outside of the local jurisdiction, describe the process to have the import restriction
waived.
5. Transfer Method. If use of a transfer station is proposed in conjunction with the proposed
processing site, proposer shall provide the same type of information requested in Items 1 through
4 of this Section 5.5.2. If an alternative transfer method is proposed, proposer shall describe the
transfer methodology and any equipment required, regulatory approval needed, and other
pertinent information.
5.5.3 Organic Materials Processing
The following information is required for commercial organic materials processing services:
1. Processing Site Information. Name and description of facilities where organic materials will be
processed, name of owner and operator, contact name and phone number of the site manager;
description of processing and composting processes (including the type of composting/digestion
method(s) used; method of tracking City tonnage if the facility receives tonnage from other
jurisdictions, the products to be produced from the organic materials (e.g., compost, mulch, etc.),
June 9, 2020 Item #10 Page 58 of 286
and the current average monthly residue level of the processing site. Note that the use of organic
materials for alternative daily cover or beneficial reuse is not allowed under the Draft Franchise
Agreement. Identify if the company that owns or operates the processing site is the same as the
proposing entity, a related-party entity, or a subcontractor.
2. Permits and Regulatory Compliance. Provide contact names for the regulatory agencies that
monitor the processing facility’s compliance with applicable local, State, and federal laws and
regulations. For each contact, provide the name of the regulatory agency, the contact person’s
name, title, and telephone number.
3. Available Processing Capacity. Provide a written commitment guaranteeing capacity for the
organic materials collected under the new Franchise Agreement throughout the term of the
Agreement. If proposer is not the owner or operator of the facility, proposer is to provide a letter
of commitment from the processing facility owner to comply with this RFP requirement.
4. Import Restrictions or Fees. List any import restrictions, taxes, or fees that will be applicable to
the receipt of the City's organic materials. Discuss the ability of the host jurisdiction or state to
increase or levy taxes, host fees, or other fees. If there is an import restriction on accepting
materials from outside of the local jurisdiction, describe the process to have the import restriction
waived.
5. Transfer Method. If use of a transfer station is proposed in conjunction with the proposed
commercial organic material processing and/or composting site, proposer shall provide the same
type of information requested in Items 1 through 4 of this Section 5.5.3. If an alternative transfer
method is proposed, proposer shall describe the transfer methodology and any equipment
required, regulatory approval needed, and other pertinent information.
5.5.5 Bulky Item Collection
Describe your approach to conducting the on-call bulky item collection programs for single-family and
multi-family customers described in Section 6 of Exhibit B1 and Section 4 of Exhibit B2 of the Draft
Franchise Agreement. Address differences in your approach to working with single-family and multi-family
customers. Identify how you plan to encourage reuse, any third party(ies) you plan to work with, and list
the materials that will be targeted for reuse.
5.5.6 Multi-Family/Commercial Technical Assistance
• Describe proposer’s plan to provide technical assistance to multi-family and commercial
businesses and identify the type of education materials that will be available.
• Identify who will manage the technical assistance efforts and the number and job
classification/title of the individuals that will be conducting assistance work.
• Identify the proposed number of technical assistance visits per week/month, and describe the
planned nature of such visits.
• Identify the estimated hours of technical assistance that will be provided per multi-family and
commercial account and the total annual hours for the technical assistance program.
• Provide an estimate of the increase in the weekly cubic yards of recycling service and the increase
in annual recycling tonnage.
June 9, 2020 Item #10 Page 59 of 286
• Describe the benefits of the proposed service, and potential challenges related to the service and
strategies for managing such challenges.
Please note that the technical assistance program will not preclude the City from also meeting with
customers, proposing service changes, and providing service orders to the selected Contractor to
implement such changes (provided that doing so does not create operational impossibilities or
unusual/unacceptable safety concerns).
5.5.8 Customer Service
To ensure that customers in the City obtain exemplary, professional, and courteous customer service,
proposer shall develop and submit as part of its proposal a customer service plan that includes the
following:
• Describe the location where proposer’s customer service operation will be housed. While the City
encourages proposers to identify a customer service office in or near the City, the City will also
consider proposals which include one or more customer service offices elsewhere, provided that
the proposer demonstrates it is able to comply with the requirements of the Draft Franchise
Agreement, including but not limited to Sections 4.9 and 4.10. If proposer chooses to propose a
customer service office location which is greater than thirty (30) miles from the center of the
City, proposer must also include in its proposal, the incremental Rate Period One cost to secure
and maintain an office within thirty (30) miles from the center of the City.
• Specify the number of full-time equivalent customer service representatives (CSR) that will serve
the City. Describe how calls will be handled/reported, how many calls are expected per CSR, and
describe any changes you will make to your current CSR operation to accommodate the City.
• Describe the proposed approach to respond to and address events of deliberate non-collection
(in addition to leaving physical non-collection notices).
• Confirm that the company has a website that customers may access to obtain customer rates,
service information, pay bills, and to submit inquiries or complaints and provide website address,
if applicable. Confirm that customers can email their queries and specify the maximum turn-
around time for responses.
• Describe how the City will access the company’s customer service system to view (in a read-only
format) customer service related information by customer type, including information such as the
number of missed pick-ups, number and type of complaints received, level of service, collection
day(s), etc. to comply with Section 4.10 of the Draft Franchise Agreement. Please provide
examples of all information that would be available to City staff using screen-shots, tables, or
other outputs from the system.
• Describe any other strategies and/or methods the proposer will implement to ensure that
customers receive exemplary customer service throughout the term of the new Franchise
Agreement.
June 9, 2020 Item #10 Page 60 of 286
5.5.9 Billing
The City currently bills most residential customers for solid waste services and it is the City’s intent to
transition that so that the collection Contractor shall be responsible for billing all customers for services.
To ensure that customers in the City obtain competent, professional, and courteous customer service with
regard to billing matters, proposer shall:
• Describe the process for transitioning the billing responsibility from the City to the Contractor,
including examples of prior transitions from municipal billing that Contractor has affected;
• Describe how the proposer will develop the necessary customer service and billing data at the
start of services. Such a description shall include the proposer’s approach for obtaining email
addresses for paperless billing, identifying service needs, and process for auditing and verifying
the accuracy of data in the Contractor’s system;
• Describe how the proposer will encourage paperless/electronic billing and automatic recurring
payments;
• Provide sample customer billings and a listing of jurisdictions where proposer currently provides
billing services, including a contact name and phone number; and,
• Describe its procedures for dealing with customer service, with regard to customer billing
demands, during the transition and throughout the term of the new Franchise Agreement.
5.5.10 Public Education and Outreach Plan
The City places the utmost importance on effective public education and promotion as the key to helping
residents and businesses understand more about source reduction, reuse, and recycling. Each proposer
shall develop a public education plan for Rate Period One, which will ultimately be included as Exhibit C
to the new Franchise Agreement. The City has included, as an example, a sample Exhibit C in the Draft
Franchise Agreement, which may be used to guide you in developing your proposed public education plan.
While the City encourages each proposer to use their own knowledge and expertise to develop the
proposed public education plan, the City requests that each proposed plan describe the following:
• Public education programs that will be implemented to educate single-family, multi-family, and
commercial customers on the recyclable materials and organics collection programs;
• Plans for complying with the education and outreach requirements of AB 939 and SB 1383;
• Description of your strategy for developing and using a website or webpage specific to the City to
provide customers with access to service information, rates, and other public education
information; include links to example websites;
• Description of your approach to non-collection and courtesy noticing, including sample non-
collection and/or courtesy notices, and noting that the City encourages proposers to utilize
innovative and proactive strategies for using such notices as public education opportunities;
• Description of your strategy for communicating to customers how to properly dispose of
household hazardous waste, sharps, and other difficult-to-handle materials;
June 9, 2020 Item #10 Page 61 of 286
• Plans for presentations to schools and other community organizations;
• Participation at City-sponsored events, such as booths, displays, sponsorship, parade floats,
farmers markets, etc.;
• Schedule and quantity of information that will be distributed (e.g., newsletter, brochures, etc.);
• Proposed number of employees, their job functions, and number of hours per week that will be
devoted to the promotion and maintenance of collection services in the City;
• Public education and outreach subcontractors (if any), and their qualifications, years of
experience, and references;
• Samples of similar educational materials, which may have been used in other programs,
particularly those related to recyclable materials collection and food scraps collection programs;
• Proposed budget for public education and outreach during the start-up period of the contract and
on an annual basis (noting the required minimum annual public education budget described in
Exhibit C of the Draft Franchise Agreement)*; and,
• Other aspects or unique features of the proposed public education and outreach plan.
*Proposers must also reflect the required minimum annual public education budget described in Exhibit
C of the Draft Franchise Agreement (or higher amount, at proposer’s option), in the Cost Proposal Forms.
5.5.11 Implementation Plan
Provide a detailed implementation plan describing the proposer’s approach to facilitating a smooth
transition to all new types of collection services and potentially a new service provider. The proposal must
clearly describe the proposer’s ability to implement the services in accordance with the schedule shown
in Figure 1 of this RFP. This should include how the proposer will meet equipment, personnel,
administration, maintenance, and public education requirements. The proposer should describe its
assumptions regarding City staff participation and the current service provider’s participation. Provide a
schedule listing key events (i.e., equipment procurement, public education, container distribution,
employee hiring and training, etc.), duration, and expected completion date of each event. Discuss
contingency plans that will be in place for various aspects of the implementation process.
5.5.12 Other Required Plans
1. SB 1383 Implementation and Monitoring Plan. Contractor will be required to provide all program
elements required by the State regulations for mandatory commercial recycling and organics
collection under SB 1383 including, at a minimum, the provision of collection services, education,
outreach, monitoring, and reporting for all properties covered by the regulations. Proposers must
describe their approach to performing customer education, outreach, contamination monitoring,
recordkeeping, and reporting to comply with SB 1383 as part of their proposal.
2. Litter Prevention/Abatement Plan. A common concern among residents is the amount of litter
left behind after provision of collection services. The City understands that many pieces of litter
that spill during collection are of such a small size that it may become challenging for route drivers
to collect them manually during the course of regular collection operations. Proposers must
June 9, 2020 Item #10 Page 62 of 286
describe their approach to either preventing such litter during collection operations, or to
effectively abate it afterwards. Proposers should include any costs related to litter
prevention/abatement in the Base Proposal.
3. Bulky Item/Reusable Materials Recovery Plan. Under the Draft Franchise Agreement, the City
will be requiring that the Contractor divert many of the materials collected through the scheduled
neighborhood clean-up days, as well as on-call bulky item/clean-up collections. Proposers must
describe their approach to performing the bulky items/reusable materials collection services
described in Exhibit B of the Draft Franchise Agreement, in such a way that promotes the highest
and best use of collected materials, including recovery for reuse where possible.
4. Vehicle Air Emissions Plan. Describe how the vehicles will comply with current and emerging
local Air Board, County, State, and federal regulations related to vehicle emissions including a
description of the specific control measures to be used and schedule for compliance. Proposer
shall describe how it plans to minimize costs for compliance over the term of the Agreement.
Proposers must also present calculations of the total vehicle miles traveled, and gallons of fuel
used per year by the proposed Contractor’s vehicles, itemized by type of vehicle. In addition,
provide the emissions factors for the proposed type of fuel, and present calculations of the total
criteria pollutant and greenhouse gas emissions per year, and carbon footprint of the proposed
City collection operations.
5.5.13 Subcontractors
Identify by name and describe all services to be performed by any subcontractors.
5.5.14 Existing Management and Customer Service Systems
Proposer shall describe the management systems and customer service systems its company plans to use
to manage inquiries and complaints received from residential and commercial customers. The description
of the management systems and customer service systems shall include:
1. Name, type of equipment, software used to maintain routing and customer service information,
and period of time the company has operated this system;
2. Management procedures for managing inquiries and complaints and procedures used to minimize
complaints (e.g., missed pick-ups, noise, spills, etc.);
3. Description of system capability and/or procedures to ensure timely accessibility of information
by jurisdictions served;
4. Description of whether individual call centers are established for each service area or if customer
calls are handled by a centralized call center; and, identification of the location of the call centers
that will be used;
5. Identification of whether the system is used company-wide or for select jurisdictions (listing which
jurisdictions);
June 9, 2020 Item #10 Page 63 of 286
6. Description of how the customer service information interfaces with route and billing data and
provision of examples of reports that summarize single-family and commercial customer
information (name, address, service location, level of service, complaints, etc.);
7. Description of your company’s internal performance standards/targets as well as procedures used
to satisfactorily respond to, record, and report common customer complaints such as: missed
pick-ups; spills and litter resulting from collection; collection schedule changes; broken or missing
containers; improperly prepared set-outs; noise complaints; traffic and sidewalk obstruction
during collection; and, safety around collection vehicles during operations;
8. Description of how the company measures customer service with regard to the call center’s
responsiveness and accuracy of responses, as well as the quality of collection service.
Identification of specific performance metrics or targets your company tracks. Provision of copies
of actual reports for at least three jurisdictions that document the actual performance level
against your targets including, at a minimum, average hold times of the customer service call
center and missed pick-ups;
9. Provision of copies of monthly or quarterly reports submitted to at least two jurisdictions that
document monthly tonnage, customer account, and complaint information; and,
10. Demonstration of the ability to report the information required in Article 6 and Exhibit D of the
Draft Franchise Agreement if not demonstrated through the presentation of information required
above.
5.5.15 Corporation Yard and Maintenance Facilities
Describe the proposed location(s) of the corporation yard for collection vehicles parking, collection
container storage, employee parking, vehicle and equipment maintenance facilities, offices, and transfer
operations (if necessary). If the facility(ies) are currently operational and owned or leased by the
proposer, describe plans, if any, to modify or expand the facility(ies) and the permitting process associated
with the modification or expansion activities. If the facility(ies) need to be purchased, leased, and/or
developed by the proposer, describe the acquisition and development plans; describe contingency plans
in the event the proposed site is not available (or suitable) or in the event the acquisition and development
timeline is delayed; and indicate willingness to stand by the proposed costs and rates if proposer has to
secure a site other than described in its proposal.
5.6 Technical Proposal for Alternative Services
5.6.1 Required Alternative Services (Required)
For the “Required” alternative services described in Section 3.2, provide a description of the proposer’s
approach to providing each service. Note that a response to this Section 5.6.1 is a required element of
the proposal; it is not optional. Cost proposal information for Alternative Services must be provided in
the proposal forms. At a minimum, include for each service the following:
• The type and number of customers that would be targeted and basis for estimated tonnage levels,
diversion information, and customer participation levels, noting the proposer’s experience with
comparable programs in other communities;
June 9, 2020 Item #10 Page 64 of 286
• Collection methodology, including discussion of special methods for collecting in hard-to-service
areas such as narrow streets, courts, and alleys;
• Equipment to be utilized (e.g., equipment/vehicle description, number, types, cost, capacity, age,
etc.); and,
• The benefits of the proposed service, and potential challenges related to the service and
strategies for managing such challenges.
5.6.2 Optional Alternative Services (Optional)
Proposer may present one or more proposals for the “Optional” alternative services described in Section
3.2, as well as other innovative and/or cost-saving services beyond those identified in this RFP and Draft
Franchise Agreement. Examples of potentially innovative or cost-saving services include, but are not
limited to: collection of additional source separated materials; reduced collection frequencies; use of used
collection vehicles, etc.
Proposer must clearly describe the proposed service(s) and the operational and financial impacts that the
inclusion of the service(s) would have on the other services. For each proposal for optional, innovative
and/or cost-saving services, proposer shall provide a thorough description of its plans for the program,
including, but not limited to, the following:
• The type and number of customers that would be targeted and basis for estimated tonnage levels
and customer participation levels;
• Collection methodology, including discussion of special methods for collecting in hard-to-service
areas such as narrow streets, courts, and alleys;
• Equipment to be utilized (e.g., equipment/vehicle description, number, types, cost, capacity, age,
etc.). Describe plans for equipment replacements through the maximum term of the franchise
agreement;
• The benefits of the proposed service, and potential challenges related to the service and
strategies for managing such challenges; and,
• Communities where this program has been successfully implemented by proposer or others.
If innovative or cost-saving proposals are presented, proposer shall submit a cost and operating data in
the space provided in the proposal forms. The City is not obligated to select these proposals. Innovative
or cost-saving proposals will be considered by the City if it concludes that they warrant evaluation and
analysis.
5.7 Environmental Considerations
Proposer shall identify environmental enhancements it can incorporate into its operations and/or
describe its company’s environmental policies that support the City’s goals and objectives related to:
• Minimizing environmental impacts (e.g., air, water, depletion of natural resources) associated
with collection, transfer, processing, and disposal services;
• Encouraging the highest and best use of recycled materials; and,
June 9, 2020 Item #10 Page 65 of 286
• Supporting, where practical, local and regional end markets for recyclables.
Examples of environmental enhancements, include:
• Using alternative fuels for collection vehicles;
• Incorporating green building best practices and standards into facilities used by proposer;
• Adopting environmentally preferable purchasing policies for the company’s operations; and,
• Achieving certification to national or international standards (e.g., ISO certification for
environmental or quality management).
The above examples are intended as guidance for what may be considered environmental enhancements.
Proposer is not obligated to address any of these elements.
5.8 Acceptance of RFP and Franchise Agreement
To provide the proposer with a clear understanding of the roles, responsibilities, rights, and obligations of
the Contractor and the City, the Draft Franchise Agreement has been prepared and is included as
Attachment 7. Proposer is required to review the Draft Franchise Agreement prior to submittal of its
proposal to the City. The City expects the Draft Franchise Agreement will be executed by the selected
Contractor in substantially the same form as presented in Attachment 7. This review process allows the
proposer to prepare the proposal and costs for services with full consideration of its rights and obligations.
Proposer must describe in detail any proposed exceptions to the RFP and Draft Franchise Agreement. For
each RFP exception, proposer shall identify the exception, explain its concern, and provide alternative
language for consideration by the City. To document the proposer’s exceptions to the Draft Franchise
Agreement and proposed alternative language, proposer shall record its exceptions and proposed
alternative language directly in an electronic version of the Draft Franchise Agreement, using “track
changes” mode, and shall include a hard-copy clearly displaying any redline/strikeout changes in its
proposal. Proposer shall also complete any information in the Draft Franchise Agreement that needs to
be tailored to the company’s proposal such as, but not limited to, the Contractor’s name, guarantor’s
name, and the proposed recyclable and organic materials processing sites. Each location in the Draft
Franchise Agreement where proposer-specific information is to be inserted is identified with a note to
proposer that provides instructions.
The City shall reserve the right to determine if the exceptions are acceptable based both on the number
and nature of exceptions taken. The exceptions to the Draft Franchise Agreement will be given significant
consideration in the evaluation process. In its sole discretion, the City may determine whether to
negotiate some or all of the proposed exceptions with one or more proposers prior to the final evaluation
of the proposals.
Proposer will be deemed to have accepted and agreed to any provisions of the RFP and/or proposed terms
and conditions of the Draft Franchise Agreement that have not been noted as exceptions in the proposal.
If the City chooses to enter into negotiations with a proposer, the noted comments and recommended
alternative Franchise Agreement language will serve as a starting point for discussion. City may end
negotiations at any point, without notice, at their discretion. The selected Contractor may not initiate
discussion related to Franchise Agreement language for which no exceptions were noted. The City may
June 9, 2020 Item #10 Page 66 of 286
request the proposer to sign the new Franchise Agreement before the City Council makes the final
Contractor selection.
5.9 Cost Proposal
The cost proposal to be prepared by proposer includes several components such as operating statistics
and detailed costs. Proposer shall submit the cost proposal using the forms provided in Attachment 3.
Proposer must carefully review the instructions provided in this section and comply fully with the
requirements set forth herein. The cost proposal includes the following three components:
1. Base cost proposal that reflects the base services (Required);
2. SB 1383 Compliant Mandatory 3-Stream Collection for All Sectors (Required)
3. Cost proposals for alternative services (Required)
3.1. Extra Cardboard Collection (Required)
3.2. Single-Family Food Pails (Required)
3.3. Multi-Family Move-in Kits (Required)
3.4. Used Motor Oil & Filter + Used Cooking Oil Collection (Required)
3.5. Provide Containers for City Illegal Dumping Clean-ups (Required)
3.6. Bulk Compost and Mulch (Required)
3.7. Compost Give-Aways (Required)
3.8. Large Event & Venue Services (Required)
3.9. Prohibited Container Contaminant Monitoring (Required)
3.10. SB 1383 Compliant 4-Stream Collection (Required)
4. Cost proposal for innovative or cost saving options (Optional for either proposal);
5. Cost proposal for Organics Processing (Collection Services Proposal not Required).
Proposer shall follow the instructions provided below for preparation of the cost proposal components.
A complete set of cost proposal forms described herein shall be included in each copy of the proposal
submitted and an electronic copy of the forms is required in Microsoft Excel.
The proposal assumptions, operating s tatistics, and cost proposal information submitted by proposer will
be evaluated to determine the reasonableness of the Contractor’s proposed rates and will serve as a
baseline for future adjustments to rates approved by the City. The cost proposal (including proposed
rates) shall be firm and valid for a period of one year from the submittal date of the proposal.
5.9.1 Guidelines
The proposer shall prepare its cost proposals in accordance with the following guidelines:
June 9, 2020 Item #10 Page 67 of 286
1. Terms based on Agreement. Contractor shall be governed by the terms and conditions of the
Draft Franchise Agreement.
2. Scope per RFP and Agreement. The proposed operating statistics, costs, and rates on Forms 2
through 14 shall encompass all base collection services, which are identified in Section 3.1 and
further described in the Draft Franchise Agreement.
3. Valid for Rate Period One. Costs, including proposed rates, shall be effective for “Rate Period
One”, which is a 12-month period running July 1, 2022 through June 30, 2023. Capital costs on
Form 4 shall be presented in current dollars, reflecting the estimated cost of purchase on or about
the contract execution date.
4. Wage and Benefit Requirements. Labor costs shall reflect the labor policy presented in Section
3.3 of the RFP and proposals shall anticipate necessary changes to reflect inflation and negotiated
labor contract terms.
5. Depreciation and Interest. The base proposal shall reflect the purchase of collection vehicles and
containers. At the proposer’s option, an alternative proposal may be presented that reflects used
equipment for some or all vehicle and container needs. In either case, depreciation and interest
expenses related to purchase of vehicles and containers at commencement and during the term
of the new Franchise Agreement (including possible extensions) need to be anticipated and an
average annual amount included for Rate Period One. Proposer shall assume an average vehicle
and container life of ten or more years and plan to depreciate the vehicles and containers over a
10-year period for the purposes of determining depreciation and interest expenses.
6. Disposal Costs. The cost of delivering solid waste to the Palomar Transfer Station shall be included
in the cost proposal forms assuming a per-ton tipping fee of forty three dollars and 01/100 as of
($ 43.01). Pursuant to Article 8 of the Draft Franchise Agreement, an adjustment shall be made to
Contractor’s compensation if the actual Palomar Transfer Station tipping fee is different than the
forty three dollars and 01/100 ($ 43.01) per ton used for purposes of the proposal.
7. Processing Costs. Proposer shall specify the per-ton processing cost for recyclables, organics,
revenues from the sale of materials, and the net processing cost (or net revenue) on Form 7 of
the cost proposal. If proposer plans to use a transfer station to move materials to the processing
facility(ies), proposer shall separately identify the per-ton transfer costs in the area provided on
Form 7.
Processing Only Proposals. If proposer elects to submit a “Processing Only” proposal, as
described in Section 3.2.2 of this RFP, proposer shall only be required to complete Form 1 and
Form 7.
8. Start-Up Costs Annualized. Start-up costs related to implementation of the new Franchise
Agreement shall be annualized over a 10-year period and shown on Form 6E for the base cost
proposal.
9. Fuel. For the base proposal, all vehicle and related fuel costs shall reflect the fuel chosen by the
proposer for the base proposal.
June 9, 2020 Item #10 Page 68 of 286
10. Compactor Service. Costs for servicing roll-off compactors shall be included with roll-off costs on
the cost proposal forms. Cost for bin-type compactors shall be included with bin costs on the cost
proposal forms.
11. Single-Family Billing Costs. While it is City intent to transfer single family billing to the collection
Contractor, please provide the assumptions detailed on Form 12 of the base services forms. Note
that in negotiating final fees, the City will request reimbursement of the share of the City’s utility
system fixed costs that will no longer be met through provision of City billing for solid waste
services.
12. Rate Proposal. The proposed rates shall be presented on Forms 8 through 14 for the base cost
proposal. The City has specified the relationship of each rate category relative to the rates of the
same customer type. As a result, the proposer is required to enter only a few rates and all other
rates will be calculated. More specific instructions are provided on the rate proposal forms. Rate
proposals are not required for the alternative cost proposal; rates will be negotiated based on
proposed costs if one or more of the alternative services are selected. Note that the rates for
ancillary services (lock service, Extra Service Tags, container delivery, bin relocation, bin cleaning,
push service over 25 feet, etc.) are also calculated in the cost forms using the relationship of the
existing ancillary service rates to the existing collection rates. Under no circumstance shall the
selected Contractor charge any ancillary service fees that have not been specifically identified in
the submitted proposal(s) and approved by in advance by the City.
13. Non-Allowable Costs. Costs identified in Exhibit E2 to the Draft Franchise Agreement as non-
allowable costs shall not be included in the cost proposal.
14. City Fees. Forms 5 and 6 of the cost proposals itemize the City fees to be included in the cost
proposal. The City reserves the right to modify fees before commencement of the Draft Franchise
Agreement. The City has pre-populated amounts for the AB 939/SB 1383 Fee and Stormwater
Fee, pursuant to the specifications of Article 7 of the Draft Franchise Agreement.
15. Service Level Assumptions. For the purposes of preparing the cost proposal, the City provided
the current number of accounts serviced in each rate category in Figure 5. This account
information is based on the best available customer information (which the City has not verified).
The proposer shall develop its cost and rate proposal based on its service level assumptions
reflecting its: (i) due diligence in reviewing the provided service level information, (ii) assessment
of the service needs of the City and its residents and businesses, (iii) the anticipated change in
service levels due to new rates, and (iv) other factors that may impact future customer service
level needs. The proposer’s assumptions shall be presented on Forms 8 through 14 of the base
cost proposal (in the columns labeled “estimated number of accounts or occurrences or
pulls/week”) and on Form 2 of the base cost proposal. If the actual level of service is more than
that assumed for the purposes of preparing the proposal, the Contractor shall receive and retain
more revenues from customer rates. Alternatively, if the actual service levels are less than
assumed for proposal purposes, the Contractor shall receive less rate revenue from customers.
16. Tonnage Assumptions. For the purposes of preparing the cost proposal, proposer shall estimate
the annual tonnage of recyclable materials, organic materials, on-call clean-up/bulky item
June 9, 2020 Item #10 Page 69 of 286
materials, and solid waste that will need to be collected. This annualized amount shall be shown
as the total tonnage collected on Form 2 in the base cost proposal and proposer shall allocate the
total tonnage to the different service categories based on its own assumptions with regard to
historical tonnage collected and future participation in recycling and organics programs. The
proposer shall develop its cost and rate proposal using its estimated tonnage levels specified on
Form 2. If actual tonnage levels are different, no adjustment will be made to Contractor’s
compensation.
5.9.2 Base Cost Proposal
Proposer is required to submit a base cost proposal using Forms 1 through 14 provided for this purpose
in Attachment 3. On the base cost proposal forms, the proposer is required to present operating statistics,
its annual cost proposal, and its rate proposal.
The estimated total annual revenue on Forms 8 through 14 is to tie to the total costs on Forms 5 and 6
(plus or minus $1,000). As described in Section 5.9.1.15 above, the estimated total annual revenues will
be based on the Contractor’s assumptions regarding future customer participation levels. Please note that
for the purposes of evaluating the rate proposal, the City may develop its own estimation of the future
customer participation levels and use its assumptions to compare one company’s rate proposal to other
company’s rate proposals.
5.9.3 Cost Proposals for Alternative Services
The City has identified required, as well as optional/suggested alternative services they may choose to
include in the scope of its Draft Franchise Agreement, as presented in Section 3.2 of the RFP. The City
selected these programs as alternative services because they want to evaluate the cost impact and
diversion potential before deciding to include the program in the scope of collection services. Proposers
are required to submit separate operating statistics and costs for each alternative service identified in
Section 3.2 as “required”, reflecting the incremental cost increases/decreases for the alternative service
above/below costs reflected in the base cost proposal. Proposers are encouraged to submit separate
operating statistics and costs for each alternative service identified in Section 3.2 as “optional”, reflecting
the incremental cost increases/decreases for the alternative service above/below costs reflected in the
base cost proposal.
If the proposer anticipates cost reductions to the base cost proposal, these reductions shall be reflected
in the alternative services cost proposal. For example, if disposal costs will decrease as a result of diverting
more organic materials, the avoided disposal cost shall be shown in the alternative service cost proposal
as a negative value. If solid waste route costs will be reduced as a result of the organics program, the net
impact to collection costs shall be shown for the alternative service (e.g., increased cost of organics
collection less reduced cost of solid waste collection).
If the City chooses an alternative service, the annual costs and rates presented in the base cost proposal
will be adjusted to reflect the selected alternative services.
June 9, 2020 Item #10 Page 70 of 286
5.10 Other Proposal Forms
5.10.1 Secretary’s Certificate
Each proposer shall complete and submit the Secretary’s Certificate, Attachment 4, documenting the
designated representative authorized to bind the proposing company.
5.10.2 Anti-Collusion Affidavit
Each proposer shall complete and submit the Anti-Collusion Affidavit, Attachment 5. The Anti-Collusion
Affidavit shall be signed by the designated representative authorized to bind the proposing company as
documented on the Secretary’s Certificate.
5.10.3 Iran Contracting Act Certification
Each proposer shall complete and submit the Iran Contracting Act Certification, Attachment 6. The Iran
Contracting Certification shall be signed by the designated representative authorized to bind the
proposing company as documented on the Secretary’s Certificate.
5.10.4 Statement of Compliance with City of Carlsbad’s Insurance Requirements
Each proposer shall complete and submit the Statement of Insurance Compliance form, Attachment 7.
The Statement of Compliance with the City of Carlsbad’s Insurance Requirements shall be signed by the
designated representative authorized to bind the proposing company as documented on the Secretary’s
Certificate.
5.11 Additional Information (Optional)
Additional information or data relevant to the proposal is optional and may be included by a proposer as
an attachment(s) to the proposal.
June 9, 2020 Item #10 Page 71 of 286
SECTION 6: PROPOSAL EVALUATION PROCESS
The City will select an evaluation committee comprised of staff, consultants, and/or outside agency
representatives. This evaluation committee will conduct a detailed evaluation of the proposals and
provide a recommendation to the City Council, considering all of the factors below, with particular focus
on the degree to which each proposal will help the City achieve the goals identified in Section 1.1. The
City values cost-effectiveness, however the recommendation of the evaluation committee will be based
on best value, including all of the factors below. The City Council will review the evaluation team’s
evaluation report and select the future Contractor. The City Council is not obligated to accept the
recommendation of the evaluation committee and may act in the best interests of the community, in its
sole discretion. City staff and its consultant will be responsible for negotiating the Draft Franchise
Agreement. The Council will ultimately be responsible for approval of the new Franchise Agreement.
The factors that may be considered by the evaluation team include, but are not limited to, the items
below. Some or all of these factors may be considered by the evaluation team, and other factors not listed
below may also be considered.
Responsiveness (Pass/Fail)
• Comprehensiveness and consistency of the proposal with respect to this RFP.
• Completeness and accuracy of all proposal forms.
• Submittal of a redline/strikeout version of the Draft Franchise Agreement with any exceptions noted,
and completion of all blanks identified for proposer to complete.
• Compliance with the RFP and procurement procedures.
• Submitted by the deadline.
Company’s Qualifications
• Collection Experience
― Demonstrated experience of company providing the requested or similar services to other
jurisdictions.
― Demonstrated experience of company’s ability to implement new collection and processing
services and new franchise agreements and obligations that are similar to the City’s services in
comparable sized communities.
― If the proposer is a joint venture, demonstrated experience of parties working together.
― If the proposer intends to use subcontractors, performance history of the proposed
subcontractors.
― Satisfaction of company’s references with the services received in the past 10 years (including,
but not limited to, implementation, customer service, call center, billing, payment of fees,
reporting, and the handling of contractual issues).
June 9, 2020 Item #10 Page 72 of 286
• Key Personnel Qualifications. Extent and relevance of the qualifications and experience of key
personnel proposed for the transition team and on-going management of the City’s collection and
processing operations.
• Performance Record. Review of company’s history with litigation and regulatory action (e.g., nature
of past and pending civil, legal, regulatory, and criminal actions; history and nature of payments of
liquidated damages, penalties, damages, etc.); performance under similar contracts with municipal
agencies; and regulatory compliance related to equipment and facilities including compliance with
land use permits, storm water discharge permits, State highway requirements, etc.
• Financial Stability. Financial strength and ability of company to acquire equipment and provide
financial assurance of performance based on review of its audited financial statements and its
proposed financing plan and the relationship of the City’s contract to the company’s total annual
revenues.
Technical Proposal for Base Collection Services
• Collection Approach – Reasonableness and reliability of the proposed collection methods, technology,
equipment, containers; productivity and operating assumptions (i.e., number of routes, route drivers,
route hours, stops per route, and other operating statistics).
• Diversion Ability – The nature and reliability of proposed diversion programs and potential of such
programs to divert solid waste from landfill disposal, and to comply with AB 341, AB 1826, and SB
1383.
• Processing and Marketing − Realistic plan and guaranteed capacity for recyclable materials processing
and marketing.
• Customer Service – Compatibility (relative to other proposers) of customer service approach and
staffing levels with the goals, objectives, and needs of the City and the requirements of the Draft
Franchise Agreement.
• Public Education and Outreach Program – Compatibility (relative to other proposers) of the proposed
education program, staffing levels, and program ideas with the goals, objectives, and needs of the City
and the requirements of the Draft Franchise Agreement; and, the quality of public education samples
relative to other proposers.
• Multi-Family and Commercial Recycling Technical Assistance – Proposed approach to providing multi-
family and commercial customers with comprehensive, results-oriented recycling technical
assistance.
• Billing System – Compatibility (relative to other proposers) of billing approach, procedures for
handling customers, and coordination plan with the City.
• Implementation Plan − Reasonableness of implementation schedule and ability to meet deadlines
(e.g., reasonableness of equipment procurement schedules, implementation staffing levels, new
corporation or maintenance yard development, and contingency plans).
June 9, 2020 Item #10 Page 73 of 286
• Other Required Plans – Compatibility (relative to other proposers) of the other plans required to be
submitted in Section 5.5.12 of the RFP with the City’s goals and objectives.
• Facilities for Equipment, Maintenance, and Administration − Compatibility (relative to other
proposers) of plan for providing the facilities needed for equipment storage; parking, maintenance,
administration; and, if applicable, transfer of materials. Level of assurance provided, if any, with
regard to site acquisition and timely development of necessary facilities.
• Other − Other technical considerations to be determined.
Technical Proposals for Alternative Services (for any and all proposed alternatives)
• Collection Approach (if applicable) – Reasonableness and reliability of the proposed collection
methods, technology, equipment, containers; productivity and operating assumptions (i.e., number
of routes, route drivers, route hours, stops per route, and other operating statistics).
• Diversion Ability (if applicable) – The nature and reliability of proposed diversion programs and
potential of such programs to divert solid waste from landfill disposal.
• Other – Other technical considerations may be evaluated in addition to the collection approach and
diversion ability.
Acceptance of RFP and Franchise Terms
• Number and Nature of Exceptions – The number and nature of exceptions to the RFP and Draft
Franchise Agreement relative to other proposers.
• Likelihood of Prompt and Successful Negotiations – The likelihood that the City will be able to promptly
and successfully negotiate changes to and finalize the Draft Franchise Agreement with the proposer.
Cost and Rate Proposals
• Reasonableness - The reasonableness, accuracy, and consistency of the proposer’s operational, labor,
capital, cost, rate, and rate revenue proposals.
• Competitiveness - The competitiveness of Company’s proposed rates to customers relative to rates
proposed by others.
June 9, 2020 Item #10 Page 74 of 286
Attachment 2 – Current Customer Rates
June 9, 2020 Item #10 Page 75 of 286
City of Carlsbad
Fiscal Year 2019-20
General City Service Fees
Residential Services*
Residential - per month (64 or 96 gallon cart)$23.50
Residential - per month (35 gallon trash)$21.42
Residential - per month (backyard service)$29.58
Extra trash cart beyond first cart $2.56
Two additional Green Waste and/or Recycling carts will be free of charge, each additional
cart will be charged $2.56
Commercial Services*
Commercial Cart (1-96 gal trash, 1-96 gal recycling)
One pick-up per week (1-96 gal cart - trash, 1-96 gal cart - recycling) $49.16
Two pick-ups per week (1-96 gal cart - trash, 1-96 gal cart - recycling)$86.90
Three pick-ups per week (1-96 gal cart - trash, 1-96 gal cart - recycling)$124.60
One pick-up per week (1-96 gal cart - trash) $23.44
Two pick-ups per week (1-96 gal cart - trash)$46.89
Three pick-ups per week (1-96 gal cart - trash)$70.33
Extra pick-up per week (1-96 gal cart - trash)$11.04
Commercial Yard Bins
2-yard bin - one pick-up per week $83.91
2-yard bin - two pick-ups per week $147.67
2-yard bin - three pick-ups per week $211.46
2-yard bin - four pick-ups per week $275.14
2-yard bin - five pick-ups per week $338.96
2-yard bin - six pick-ups per week $402.74
2-yard bin - extra pick-up $40.36
3-yard bin - one pick-up per week $113.99
3-yard bin - two pick-ups per week $207.84
3-yard bin - three pick-ups per week $301.67
3-yard bin - four pick-ups per week $395.51
3-yard bin - five pick-ups per week $489.34
3-yard bin - six pick-ups per week $583.20
3-yard bin - extra pick-up $54.16
4-yard bin - one pick-up per week $152.01
4-yard bin - two pick-ups per week $283.87
4-yard bin - three pick-ups per week $415.78
4-yard bin - four pick-ups per week $547.64
4-yard bin - five pick-ups per week $679.51
4-yard bin - six pick-ups per week $811.39
4-yard bin - extra pick-up $64.80
5-yard bin - one pick-up per week $190.05
5-yard bin - two pick-ups per week $359.98
5-yard bin - three pick-ups per week $529.88
5-yard bin - four pick-ups per week $699.79
5-yard bin - five pick-ups per week $869.71
5-yard bin - six pick-ups per week $1,039.64
5-yard bin - extra pick-up $75.41
Commercial Split Bins, includes 2 locks
One pick-up per week $92.05
Two pick-ups per week $168.01
Three pick-ups per week $243.95
Four pick-ups per week $319.89
June 9, 2020 Item #10 Page 76 of 286
City of Carlsbad
Fiscal Year 2019-20
General City Service Fees
These are pass through fees from Waste Management, must reflect full fee amount with decimals.
Five pick-ups per week $395.83
Six pick-ups per week $471.78
Commercial Recycling
96 gal cart - one pick-up per week $21.57
96 gal cart - two pick-ups per week $43.14
96 gal cart - three pick-ups per week $64.71
96 gal cart - extra pick-up $10.22
3-yard bin - one pick-up per week $82.62
3-yard bin - two pick-ups per week $139.77
3-yard bin - three pick-ups per week $196.92
3-yard bin - four pick-ups per week $254.07
3-yard bin - five pick-ups per week $303.26
3-yard bin - six pick-ups per week $363.70
3-yard bin - seven pick-ups per week $424.32
3-yard bin - extra pick-up $37.93
4-yard bin - one pick-up per week $83.97
4-yard bin - two pick-ups per week $142.05
4-yard bin - three pick-ups per week $200.12
4-yard bin - four pick-ups per week $258.19
4-yard bin - five pick-ups per week $308.17
4-yard bin - six pick-ups per week $369.59
4-yard bin - seven pick-ups per week $431.19
4-yard bin - extra pick-up $38.57
Commercial Yard Waste
96 gal cart - one pick-up per week $24.27
96 gal cart - extra pick up $10.72
3-yard bin - one pick-up per week $131.41
3-yard bin - two pick-ups per week $235.88
Commercial Compactor
3-yard bin - one pick-up per week $159.76
3-yard bin - two pick-ups per week $299.22
3-yard bin - three pick-ups per week $438.65
3-yard bin - four pick-ups per week $578.07
3-yard bin - five pick-ups per week $717.51
3-yard bin - six picks-up per week $856.97
3-yard bin - extra pick-up $64.98
Commercial - Special Haul Bin Rate - includes delivery fee
3-yard bin - one pick-up per week $139.35
3-yard bin - two pick-ups per week $217.78
3-yard bin - three pick-ups per week $296.20
3-yard bin - four pick-ups per week $374.63
3-yard bin - five pick-ups per week $453.07
3-yard bin - six pick-ups per week $531.50
3-yard bin - extra pick-up $45.50
Commercial Construction and Demolition Recycling
Special Haul Bin (no Storm Water Fees) 1 week or less $98.41
3-yard temporary C&D Recycling Bin $116.62
4-yard temporary C&D Recycling Bin $126.75
Commercial - Roll off Service
Service Fee - Roll off service $233.92
Service Fee /Contaminated Load $233.92
June 9, 2020 Item #10 Page 77 of 286
City of Carlsbad
Fiscal Year 2019-20
General City Service Fees
These are pass through fees from Waste Management, must reflect full fee amount with decimals.
Disposal Fee per Ton (pass through)$47.52
Roll off - Demurrage Per Day Charge $4.98
Delivery $60.20
Delivery Demo (includes signage) $63.43
Relocation Charge onsite $47.03
Relocation Charge offsite $67.10
Wash Out Receiver Boxes $53.81
Dead Run charge $80.65
Standby charge per minute after 5 minutes $2.13
Other Fees and Charges*
Bin Exchange $63.68
Bin Lock Set Up Fee $39.80
Locking Fee $15.13
Overloaded Bins $54.83
Bin paint charge fee - allowed 1 per year. After first paint within one year, there will be a
charge per paint request.$109.61
Bin that needs to be moved:
5 to 30 feet $5.57
31 to 50 feet $7.57
Additional 25 feet increments $7.57
Special haul bin delivery $43.90
Certified burial at Miramar plus special handling fee charged by Miramar $343.60
Commercial Return to Service Fee - The return to service fee for two or more calls in a one-
month period by a bin $70.62
Copy Fee - The charge for copies requested by customers $1.50
Delivery of extra cart $12.60
Late Fee - Minimum fee on any delinquent account - $3 minimum charge $3.78
Bulky Item - Exceeding 5 per pick up - First item $44.71
Bulky Item - Exceeding 5 per pick up - each additional item $11.46
Commercial Bin Customers shall be charged for bulky item pick-ups
Per Bulky Item - first item $44.71
Per Bulky Item - each additional item $11.46
Bulky Item requiring 2 people to handle $64.20
Contamination Fee - to recover costs for separating solid waste placed in a recycling or
green waste container or for arranging a special, unscheduled collection due to
contamination.$57.01
Scout service per bin per service $51.58
Residential Return to Service Fee - The return to service fee for two or more calls in a one-
month period by a residential customer $35.91
Restart Fee - The fee for restarting commercial service when a permanent account has
been terminated for non-payment.$21.54
*Storm Water fee included
Single and Multi-Family Residents - 3 bulky item pick ups per calendar year with 5 items maximum per
pick up
June 9, 2020 Item #10 Page 78 of 286
City of Carlsbad
Fiscal Year 2019-20
General City Service Fees
Miscellaneous Water Fees
Backflow 2nd Notice $11
Backflow 3rd Notice $33
Backflow Inspection - County Department of Environmental Health (CDEH)
(invoice total from CDEH)Actual Cost
Backflow Preventer Charge (per month, each account)Actual Cost
Backflow Reinspection (consistent with city payroll records)Actual Cost
Blueprinting of Standard Size (24" x 36") Improvement Plan Sheet (cost for each)$5
Potable, Reclaimed and Sewer Standards and Specifications (available on internet)No Charge
Potable, Reclaimed and Sewer Standards and Specifications (cost for each)Actual Cost
Utility Standards and Specifications (actual cost of reproduction)Actual Cost
Potable Water Meter - Construction Meter Deposit $900
Potable Water Meter - Construction Meter Installation $192
Potable Water Meter - Construction Meter Relocation $85
Recycled Water Meter - Construction Meter Deposit $900
Recycled Water Meter - Construction Meter Installation $192
Recycled Water Meter - Construction Meter Relocation $85
Included in Improvement Plan Review Fees:
Hydraulic Analysis Only
Potable, Reclaimed and Sewer Improvement Plan Review
Preliminary Potable or Reclaimed Water Analysis Review
Preliminary Sewer Analysis/Review
Reclaimed Water Landscape Review
Water Account Service Fees
Accounts scheduled for termination for non-payment $40
After Hours Turn On (Note 1)$178
Continuity of Service $12
Door Hanger - Electronic $1
Door Hanger - Paper $16
Next Scheduled Day Service Turn On (Note 2)$65
New Account Setup $40
Same Day Turn On - not scheduled for that day (Note 2)$150
Note 1 - Effective 2/1/2020, for customers that qualify for Alternative Payment arrangements under SB998,
this fee will be $150.
Note 2 - Effective 2/1/2020, for customers that qualify for Alternative Payment arrangements under SB998,
these fees will be $50.
June 9, 2020 Item #10 Page 79 of 286
ATTACHMENT 4
SECRETARY’S CERTIFICATE
I,____________________, certify that I am the Secretary of the corporation named herein; that
Name
____________________ who signed this Proposal on behalf of the corporation, was then
Name
____________________ of said corporation; that said Proposal is within the scope of its
Title
corporate powers and was duly signed for and on behalf of said corporation by authority of its
governing body, as evidenced by the attached true and correct copy of the
______________________________________ .
Name of Corporate Document
By: ________________________________________
Name: _____________________________________
Title: Secretary_____________________________
Date: ______________________________________
June 9, 2020 Item #10 Page 80 of 286
ATTACHMENT 5
NON-COLLUSION AFFIDAVIT
NON‐COLLUSION DECLARATION TO BE EXECUTED BY
PROPOSER AND SUBMITTED WITH PROPOSAL
The undersigned declares:
I am the _____________ of _____________, the party making the foregoing proposal.
The proposal is not made in the interest of, or on behalf of, any undisclosed person, partnership,
company, association, organization, or corporation. The proposal is genuine and not collusive or sham.
The proposer has not directly or indirectly induced or solicited any other proposer to put in a false or
sham proposal. The proposer has not directly or indirectly colluded, conspired, connived, or agreed with
any proposer or anyone else to put in a sham proposal, or to refrain from proposing. The proposer has
not in any manner, directly or indirectly, sought by agreement, communication, or conference with
anyone to fix the price of the proposal or any other proposer, or to fix any overhead, profit, or cost
element of the price, or of that of any other proposer. All statements contained in the proposal are true.
The proposer has not, directly or indirectly, submitted his or her proposal price or any breakdown
thereof, or the contents thereof, or divulged information or data relative thereto, to any corporation,
partnership, company, association, organization, bid depository, or to any member or agent thereof, to
effectuate a collusive or sham proposal, and has not paid, and will not pay, any person or entity for
such purpose.
Any person executing this declaration on behalf of a proposer that is a corporation, partnership,
joint venture, limited liability company, limited liability partnership, or any other entity, hereby
represents that he or she has full power to execute, and does execute, this declaration on behalf of the
proposer.
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and
correct and that this declaration is executed
By _______________________ [name],
On _______________________ [date],
At _______________________ [city], _______________________ [state].
June 9, 2020 Item #10 Page 81 of 286
ATTACHMENT 6
IRAN CONTRACTING ACT CERTIFICATION
CONTRACTOR’S IRAN CONTRACTING ACT CERTIFICATION
Pursuant to Public Contract Code Section 2200 et seq., (“Iran Contracting Act of 2010”), Contractor
certifies that:
(1)Contractor is not identified on the list created by the California Department of General Services
(“DGS”) pursuant to California Public Contract Code Section 2203(b) as a Person engaging in
investment activities in Iran; and
(2)Contractor is not a financial institution that extends twenty million dollars ($20,000,000) or
more in credit to another Person, for 45 days or more, if that Person will use the credit to
provide goods or services in the energy sector in Iran and is identified on the DGS list made
pursuant to Section 2203(b).
As used herein, “Person” shall mean a “Person” as defined in Public Contract Code Section 2202(e).
I, the official named below, CERTIFY UNDER PENALTY OF PERJURY, that I am duly authorized to legally
bind the Contractor to this Certification, which is made under the laws of the State of California.
(Company Name)
By: (Signature)
Name: (Printed Name)
Title:
Date:
June 9, 2020 Item #10 Page 82 of 286
DRAFT
FRANCHISE AGREEMENT
BETWEEN
CITY OF CARLSBAD
AND
___________________________
FOR
RECYCLING, ORGANICS, AND SOLID WASTE COLLECTION
AND
RECYCLING PROCESSING SERVICES
City Review Draft
May 1, 2020
______________, 2020
June 9, 2020 Item #10 Page 83 of 286
{This page intentionally left blank}
June 9, 2020 Item #10 Page 84 of 286
Table of Contents
RECITALS ...........................................................................................................................................1
ARTICLE 1. GRANT AND ACCEPTANCE OF FRANCHISE ..........................................................................2
1.1 GRANT AND ACCEPTANCE OF FRANCHISE .................................................................................. 2
1.2 LIMITATIONS TO THE FRANCHISE ................................................................................................ 2
1.3 OBLIGATIONS OF PARTIES ........................................................................................................... 4
ARTICLE 2. TERM OF AGREEMENT .......................................................................................................5
2.1 TERM AND OPTION TO EXTEND .................................................................................................. 5
2.2 CONDITIONS TO EFFECTIVENESS OF AGREEMENT ...................................................................... 5
ARTICLE 3. SCOPE OF AGREEMENT......................................................................................................6
3.1 SUMMARY SCOPE OF SERVICES................................................................................................... 6
3.2 USE OF APPROVED FACILITIES ..................................................................................................... 7
3.3 SUBCONTRACTING ....................................................................................................................... 7
3.4 RESPONSIBILITY FOR MATERIALS ................................................................................................ 7
3.5 CITY-DIRECTED CHANGES TO SCOPE ........................................................................................... 8
ARTICLE 4. SCOPE OF SERVICES ...........................................................................................................8
4.1 RECYCLABLE MATERIALS ............................................................................................................. 8
4.2 ORGANIC MATERIALS ................................................................................................................ 10
4.3 SOLID WASTE ............................................................................................................................. 13
4.4 BULKY ITEMS AND REUSABLE MATERIALS ................................................................................ 14
4.5 SPECIAL EVENTS ......................................................................................................................... 14
4.6 STREET SWEEPING ........................................................................ Error! Bookmark not defined.
4.7 PUBLIC EDUCATION AND OUTREACH ........................................................................................ 15
4.8 BILLING ...................................................................................................................................... 16
4.9 CUSTOMER SERVICE PROGRAM ................................................................................................ 18
4.10 ACCESS TO CUSTOMER SERVICE AND BILLING SYSTEMS .......................................................... 20
4.11 SERVICE EXEMPTIONS ............................................................................................................... 21
ARTICLE 5. STANDARD OF PERFORMANCE ........................................................................................ 29
5.1 GENERAL .................................................................................................................................... 29
5.2 OPERATING HOURS AND SCHEDULES ....................................................................................... 29
5.3 COLLECTION STANDARDS .......................................................................................................... 30
5.4 TRANSFER AND PROCESSING STANDARDS ................................................................................ 32
5.5 COLLECTION VEHICLE REQUIREMENTS ..................................................................................... 33
5.6 CONTAINER REQUIREMENTS ..................................................................................................... 35
5.7 PERSONNEL ................................................................................................................................ 39
5.8 HAZARDOUS WASTE INSPECTION AND HANDLING ................................................................... 41
5.9 CONTRACT MANAGEMENT ....................................................................................................... 42
5.10 ENVIRONMENTALLY-PREFERRABLE PURCHASING .................................................................... 42
5.11 LOCAL PURCHASING PREFERENCE............................................................................................. 43
5.12 DIVERSION REQUIREMENTS ...................................................................................................... 43
5.13 CUSTOMER REBATES FOR FAILURE TO PROVIDE SERVICE ........................................................ 43
June 9, 2020 Item #10 Page 85 of 286
ARTICLE 6. RECORD KEEPING AND REPORTING ................................................................................. 45
6.1 RECORD KEEPING....................................................................................................................... 45
6.2 REPORT SUBMITTAL REQUIREMENTS ....................................................................................... 46
6.3 PERFORMANCE REVIEW AND AUDIT ......................................................................................... 46
ARTICLE 7. CITY FEES ........................................................................................................................ 47
7.1 FRANCHISE FEE .......................................................................................................................... 47
7.2 AB 939 FEE ................................................................................................................................. 47
7.3 VEHICLE IMPACT MITIGATION FEE ............................................................................................ 47
7.4 HOUSEHOLD HAZARDOUS WASTE (HHW) FEE .......................................................................... 47
7.5 ADJUSTMENT TO FEES ............................................................................................................... 47
7.6 PAYMENT SCHEDULE AND LATE FEES ....................................................................................... 48
7.7 PROCUREMENT REIMBURSEMENT FEE ..................................................................................... 48
ARTICLE 8. CONTRACTOR'S COMPENSATION AND RATE SETTING ...................................................... 48
8.1 GENERAL .................................................................................................................................... 48
8.2 RATES AND ANNUAL ADJUSTMENTS ......................................................................................... 49
8.3 EXTRAORDINARY RATE ADJUSTMENTS ..................................................................................... 50
ARTICLE 9. INDEMNITY, INSURANCE, AND PERFORMANCE BOND ...................................................... 51
9.1 INDEMNIFICATION ..................................................................................................................... 51
9.2 INSURANCE ................................................................................................................................ 53
9.3 PERFORMANCE BOND ............................................................................................................... 56
ARTICLE 10. DEFAULT AND REMEDIES ............................................................................................... 56
10.1 EVENTS OF DEFAULT .................................................................................................................. 56
10.2 RIGHT TO TERMINATE UPON EVENT OF DEFAULT .................................................................... 58
10.3 CITY’S REMEDIES IN THE EVENT OF DEFAULT ........................................................................... 58
10.4 POSSESSION OF RECORDS UPON TERMINATION ...................................................................... 59
10.5 CITY'S REMEDIES CUMULATIVE; SPECIFIC PERFORMANCE ....................................................... 59
10.6 PERFORMANCE STANDARDS AND LIQUIDATED DAMAGES ...................................................... 60
10.7 EXCUSE FROM PERFORMANCE .................................................................................................. 61
10.8 RIGHT TO DEMAND ASSURANCES OF PERFORMANCE .............................................................. 62
10.9 DISPUTE RESOLUTION ............................................................................................................... 62
ARTICLE 11. REPRESENTATIONS AND WARRANTIES OF THE PARTIES ................................................. 63
11.1 CONTRACTOR’S CORPORATE STATUS ....................................................................................... 63
11.2 CONTRACTOR’S CORPORATE AUTHORIZATION ........................................................................ 63
11.3 AGREEMENT WILL NOT CAUSE BREACH .................................................................................... 63
11.4 NO LITIGATION .......................................................................................................................... 64
11.5 NO ADVERSE JUDICIAL DECISIONS ............................................................................................ 64
11.6 NO LEGAL PROHIBITION ............................................................................................................ 64
11.7 CONTRACTOR’S ABILITY TO PERFORM ...................................................................................... 64
ARTICLE 12. OTHER AGREEMENTS OF THE PARTIES ........................................................................... 64
12.1 RELATIONSHIP OF PARTIES ........................................................................................................ 64
12.2 COMPLIANCE WITH LAW ........................................................................................................... 65
12.3 GOVERNING LAW ...................................................................................................................... 65
June 9, 2020 Item #10 Page 86 of 286
12.4 JURISDICTION ............................................................................................................................ 65
12.5 BINDING ON SUCCESSORS ......................................................................................................... 65
12.6 ASSIGNMENT ............................................................................................................................. 65
12.7 NO THIRD PARTY BENEFICIARIES ............................................................................................... 67
12.8 WAIVER ...................................................................................................................................... 67
12.9 NOTICE PROCEDURES ................................................................................................................ 67
12.10 REPRESENTATIVES OF THE PARTIES ...................................................................................... 68
ARTICLE 13. MISCELLANEOUS AGREEMENTS ..................................................................................... 68
13.1 ENTIRE AGREEMENT .................................................................................................................. 68
13.2 SECTION HEADINGS ................................................................................................................... 68
13.3 REFERENCES TO LAWS ............................................................................................................... 69
13.4 AMENDMENTS ........................................................................................................................... 69
13.5 SEVERABILITY ............................................................................................................................. 69
13.6 COUNTERPARTS ......................................................................................................................... 69
13.7 EXHIBITS ..................................................................................................................................... 69
List of Exhibits
A. Definitions
B. Direct Services
B1. Single-Family Residential Services
B2. Multi-Family Residential Services
B3. Commercial Services
B4. City Services
B5. City Service Levels and Locations
C. Public Education and Outreach Requirements
D. Reporting Requirements
E. Rate Adjustment Methodology
E1. Multi-Index Rate Adjustment Methodology E2. Cost-Based Rate Adjustment Methodology
E3. Recyclable Materials Processing Rate Adjustment Methodology
F. Performance Standards and Liquidated Damages
G. Contractor’s Proposal
G1. Technical Proposal
G2. Cost Basis for Proposal
G3. Initial Rates for Collection Services
G4. Implementation Plan and Schedule
G5. Approved Subcontractors
H. Anticipated Required Positions
I. Environmentally Preferable Purchasing Policy
June 9, 2020 Item #10 Page 87 of 286
DRAFT Franchise Agreement 1
between 2 City of Carlsbad 3 and 4 _________ 5 for Recycling, Organics, and Solid Waste Collection 6 and Recycling Processing Services 7
THIS FRANCHISE AGREEMENT is made and entered into as of ________________, 2021 between the City 8
of Carlsbad, California, a municipal corporation (hereinafter “City”), and _________, (hereinafter referred 9
to as the “Contractor”) (each a “Party” and collectively the “Parties”). 10
RECITALS 11
This Agreement is entered into with reference to the following facts and circumstances: 12
WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste 13
Management Act of 1989 (AB 939) (California Public Resources Code Section 40000 et seq.), has declared 14
that it is in the public interest to authorize and require local agencies to make adequate provisions for 15
Solid Waste Collection within their jurisdiction; 16
WHEREAS, the State of California has found and declared that the amount of refuse generated in 17
California, coupled with diminishing Disposal capacity and potential adverse environmental impacts from 18
landfilling and the need to conserve natural resources, have created an urgent need for State and local 19
agencies to enact and implement an aggressive integrated waste management program. The State has, 20
through enactment of AB 939 and subsequent related legislation including, but not limited to: the Jobs 21
and Recycling Act of 2011 (AB 341), the Event and Venue Recycling Act of 2004 (AB 2176), SB 1016 22
(Chapter 343, Statutes of 2008 [Wiggins, SB 1016]), the Mandatory Commercial Organics Recycling Act of 23
2014 (AB 1826), and the Short-Lived Climate Pollutants Bill of 2016 (SB 1383), directed the responsible 24
State agency, and all local agencies, to promote Diversion and to maximize the use of feasible waste 25
reduction, re-use, Recycling, and Composting options in order to reduce the amount of refuse that must 26
be Disposed; and, 27
WHEREAS, SB 1383 establishes regulatory requirements for jurisdictions, Generators, haulers, Solid Waste 28
facilities, and other entities to support achievement of State-wide Organic Waste Disposal reduction 29
targets; and, 30
WHEREAS, SB 1383 requires the City to implement Collection programs, meet Processing facility 31
requirements, conduct contamination monitoring, provide education, maintain records, submit reports, 32
monitor compliance, conduct enforcement, and fulfill other requirements; and, the City has chosen to 33
delegate some of its responsibilities to the Contractor, acting as the Jurisdiction’s designee, through this 34
Agreement; and, 35
WHEREAS, pursuant to California Public Resources Code Section 40059(a)(2), the City has determined that 36
the public health, safety, and well-being require that an exclusive right be awarded to a qualified 37
Contractor to provide for the Collection of Recyclable Materials, Organic Materials, and Solid Waste and 38
June 9, 2020 Item #10 Page 88 of 286
other services related to meeting the City’s economic and environmental goals; and, 39
WHEREAS, the City further declares its intent to approve and maintain reasonable rates for the Collection, 40
Recycling, Processing, Composting, and/or Disposal of Recyclable Materials, Organic Materials, and Solid 41
Waste; and, 42
WHEREAS, the City desires, having determined that Contractor, by demonstrated experience, reputation 43
and capacity is qualified to provide for both the Collection of Recyclables Materials, Organic Materials, 44
and Solid Waste within the corporate limits of the City and the Transportation of such material to 45
appropriate places of Processing, Recycling, Composting, and/or Disposal, that Contractor be engaged to 46
perform such services on the basis set forth in this Agreement; and, 47
WHEREAS, the City and Contractor have attempted to address conditions affecting their performance of 48
services under this agreement but recognize that reasonably unanticipated conditions may occur during 49
the term of this agreement that will require the Parties to meet and confer to reasonably respond to such 50
changed conditions; and 51
WHEREAS, under Municipal Code Section 6.08.180, the City may enter into a contract for the collection, 52
removal and disposal of all refuse in and from the City and the collection of rates therefor, and the City 53
Council is authorized to enter into such contract with any terms it deems necessary to protect the best 54
interests of the City; 55
NOW, THEREFORE, in consideration of the mutual promises, covenants, and conditions contained in this 56
Agreement and for other good and valuable consideration, the Parties agree as follows: 57
ARTICLE 1. 58 GRANT AND ACCEPTANCE OF FRANCHISE 59
1.1 GRANT AND ACCEPTANCE OF FRANCHISE 60
By the signing of this Agreement, the City grants to Contractor and Contractor accepts an exclusive 61
franchise within the corporate limits of the City. The franchise granted to Contractor shall be for the scope 62
of services described in this Agreement, subject to the limitations described in Section 1.2 and except 63
where otherwise precluded by Federal, State, and local laws and regulations. 64
1.2 LIMITATIONS TO THE FRANCHISE 65
The award of this Agreement shall not preclude the categories of Recyclable Materials, Organic Materials, 66
Solid Waste, or other materials listed below from being delivered to and Collected and Transported by 67
others, provided that nothing in this Agreement is intended to or shall be construed to excuse any Person 68
from obtaining any authorization from the City which is otherwise required by law: 69
A. Recyclable and Organic Materials. Other Persons shall maintain the right to: (1) accept Source 70
Separated Recyclable Materials and Source Separated Organic Materials donated from the service 71
recipient, or (2) to pay the service recipient for Source Separated Recyclable Materials and Source 72
Separated Organic Materials provided that there is no net payment made by the service recipient 73
to such other Person; 74
June 9, 2020 Item #10 Page 89 of 286
B. Self-Hauled Materials. A Commercial business Owner or Resident may Dispose of Recyclable 75
Materials, and Organic Materials, generated in or on their own Premises with their own vehicle. 76
C. Construction and Demolition Debris (C&D). Other Persons shall have the right to collect C&D, 77
provided that such Persons maintain a City-issued permit granting such right, and the C&D was 78
generated from a construction, demolition, alteration, or remodel project pursuant to a permit 79
issued by the City. 80
D. Donated or Sold Materials. Any items which are Source Separated at any Premises by the 81
Generator and sold or donated to other Persons, including youth, civic, or charitable 82
organizations. 83
E. Edible Food. Edible food which is collected from a Generator by other Person(s), such as a Person 84
from a Food Recovery Organization or Food Recovery Service, for the purposes of Food Recovery; 85
or which is Self-Hauled by the Generator to another Person(s), such as a Person from a Food 86
Recovery Organization, for the purposes of Food Recovery, regardless of whether the Generator 87
donates, sells, or pays a fee to the other Person(s) to collect or receive the Edible Food. 88
F. Food Scraps. Food Scraps that are separated by the Generator and used by the Generator or 89
distributed to other Person(s) for lawful use as animal feed, in accordance with 14 CCR Section 90
18983.1(b)(7). Food Scraps intended for animal feed may be Self-Hauled by Generator or hauled 91
by another party. 92
G. Materials That Contractor Does Not Divert. Discarded Materials which the Contractor is not 93
required to Process and Divert under this Agreement as of the Effective Date of this Agreement 94
which subsequently, in the City’s reasonable judgment, become economically feasible to Divert. 95
In such event, Contractor shall have the exclusive right to Collect and Process such materials if 96
Contractor agrees to do so without any change in Rates. If Contractor is unwilling to Process and 97
Divert such new materials at existing Rates, the City may provide for Collection, Processing, and 98
Diversion of such materials in any manner it deems appropriate. Such materials may include, but 99
not be limited to, organic materials which Contractor would otherwise Dispose. Contractor may 100
not enforce its exclusive franchise rights in a manner that would prevent the Diversion of material 101
that Contractor is unable or unwilling to Divert. 102
H. Beverage Containers. Containers delivered for Recycling under the California Beverage Container 103
Recycling and Litter Reduction Act, Section 14500, et seq. California Public Resources Code. 104
I. Materials Removed by Customer’s Contractor as Incidental Part of Services. Recyclable 105
Materials, Organic Materials, Solid Waste, and Bulky Items removed from a Premises by a 106
contractor (e.g., gardener, landscaper, tree-trimming service, construction contractor, Residential 107
clean-out service) as an incidental part of the service being performed, rather than as a separately 108
contracted or subcontracted hauling service; or if such contractor is providing a service which is 109
not included in the scope of this Agreement. 110
J. On-site or Community Composting. Organic Materials Composted or otherwise legally managed 111
at the site where it is generated (e.g., backyard composting, or on-site anaerobic digestion) or at 112
a Community Composting site. 113
K. Animal, Grease Waste, and Used Cooking Oil. Animal waste and remains from slaughterhouse or 114
June 9, 2020 Item #10 Page 90 of 286
butcher shops, grease, or used cooking oil. 115
L. Sewage Treatment By-Product. By-products of sewage treatment, including sludge, sludge ash, 116
grit, and screenings. 117
M. Excluded Waste. Excluded Waste regardless of its source. 118
N. Materials Generated by State and County Facilities. Materials generated by State and County 119
facilities located in the City, including but not limited to the Carlsbad Unified School District, 120
provided that the Generator has arranged services with other Persons or has arranged services 121
with the Contractor through a separate agreement. 122
Contractor acknowledges and agrees that the City may permit other Persons besides the Contractor to 123
Collect any and all types of materials excluded from the scope of this Franchise, as set forth above, without 124
seeking or obtaining approval of Contractor. If Contractor can produce evidence that other Persons are 125
servicing Collection Containers or are Collecting and Transporting Recyclable Materials, Organic Materials, 126
and/or Solid Waste in a manner that is not consistent with this Agreement or the City’s Code, it shall 127
report the location, the name and phone number of the Person or company to the City’s Contract Manager 128
along with Contractor’s evidence. In such case, City may notify the Generator and Person providing service 129
of Contractor’s rights under this Agreement. 130
This Agreement and scope of this franchise shall be interpreted to be consistent with Applicable Law, now 131
and during the Term of the Agreement. If future judicial interpretations of current law or new laws, 132
regulations, or judicial interpretations limit the ability of the City to lawfully contract for the scope of 133
services in the manner and consistent with all provisions as specifically set forth herein, Contractor agrees 134
that the scope of the Agreement will be limited to those services and materials which may be lawfully 135
included herein and that the City shall not be responsible for any lost profits or losses claimed by 136
Contractor to arise out of limitations to the scope or provisions of the Agreement set forth herein. In such 137
an event, it shall be the responsibility of Contractor to minimize the financial impact of such future judicial 138
interpretations or new laws and the Contractor may meet and confer with City and may petition for a Rate 139
adjustment pursuant to Section 8.3. 140
1.3 OBLIGATIONS OF PARTIES 141
In addition to the specific performance required under the Agreement, City and Contractor shall: 142
1. Use their reasonable commercial efforts to enforce the exclusive nature of the franchise by the 143
Contractor’s identification and documentation of violations of the franchise agreement and the 144
City’s notification of generators and collection companies reasonably believed to be violating the 145
franchise regarding the terms of this Agreement. 146
2. Provide timely notice to one another of a perceived failure to perform any obligations under this 147
Agreement and access to information demonstrating the Party’s failure to perform. 148
3. Provide timely access to the City Contract Manager and the Contractor’s designated 149
representative and complete and timely responses to requests of the other Party. 150
4. Provide timely notice of matters which may affect either Party’s ability to perform under the 151
Agreement. 152
June 9, 2020 Item #10 Page 91 of 286
ARTICLE 2. 153
TERM OF AGREEMENT 154
2.1 TERM AND OPTION TO EXTEND 155
The Term of this Agreement shall commence July 1, 2022 (Commencement Date) and continue in full force 156
for a period of approximately ten (10) years, through and including June 26, 2032, unless the Agreement 157
is extended in accordance with this Section or terminated pursuant to Section 10.2. 158
At City’s sole discretion, this Agreement may be extended one or more times without amendment for a 159
period of no more than five (5) additional years for a total Term that does not extend beyond June 30, 160
2037. If City desires to extend the Agreement, City shall provide the Contractor with written notice of its 161
decision to extend the Agreement at least one (1) year before the expiration of the initial Term and at 162
least six (6) months before the expiration of any extended term. Such notice by City shall specify the 163
duration of the extension. 164
Between the Effective Date and Commencement Date, Contractor shall perform all activities necessary to 165
prepare itself to start providing services required by this Agreement on the Commencement Date. 166
2.2 CONDITIONS TO EFFECTIVENESS OF AGREEMENT 167
The obligation of City to permit this Agreement to become effective and to perform its undertakings 168
provided for in this Agreement is subject to the satisfaction of all the conditions below, each of which may 169
be waived, in written form only, in whole or in part by City. 170
A. Accuracy of Representations. The Contractor’s representations and warranties made in 171
Contractor’s Proposal and Article 11 of this Agreement are true and correct on and as of the 172
Effective Date. 173
B. Furnishings of Insurance and Performance Bond. Contractor has furnished evidence of the 174
insurance and performance bond required by Article 9 that is satisfactory to the City. 175
C. Absence of Litigation. To the best of Contractor's knowledge, after reasonable investigation, 176
there is no action, suit, proceeding or investigation, at law or in equity, before or by any court or 177
governmental authority, commission, board, agency or instrumentality decided, pending or 178
threatened against Contractor wherein an unfavorable decision, ruling or finding, in any single 179
case or in the aggregate, would: 180
1. Materially adversely affect the performance by Contractor of its obligations hereunder; 181
2. Adversely affect the validity or enforceability of this Agreement; or, 182
3. Have a material adverse effect on the financial condition of Contractor, or any surety or 183
entity guaranteeing Contractor's performance under this Agreement. 184
D. Permits Furnished. Contractor has provided City with copies of all permits necessary for operation 185
of all Approved Facilities owned or operated by Contractor or any Subcontractor for use under 186
the terms of this Agreement. 187
June 9, 2020 Item #10 Page 92 of 286
E. Legal Challenge. Contractor understands and acknowledges that the award of this Agreement and 188
related decisions may be subject to review and repeal by the City’s citizens through a referendum 189
or similar petition, and to various types of legal and environmental challenges (such referenda, 190
similar petition and legal and environmental challenges being referred to collectively as “Legal 191
Challenges”). Accordingly, this Agreement shall not become effective until the City reasonably 192
determines that (1) any Legal Challenges that had been initiated as of the time of such 193
determination have been resolved in favor of the City’s award of this Agreement to Contractor; 194
and (2) the deadline to initiate any additional Legal Challenges has expired; provided, however, 195
that Contractor shall be entitled to rescind this Agreement upon thirty (30) days’ prior written 196
notice to the City if such determination is not made by {Insert Date}. 197
ARTICLE 3. 198 SCOPE OF AGREEMENT 199
3.1 SUMMARY SCOPE OF SERVICES 200
The Contractor or its Subcontractor(s) shall be responsible for the following: 201
A. For a three-Container system: Providing a three-Container Collection program for the separate 202
Collection of Recyclable Materials, Organic Materials, and Solid Waste generated by and placed 203
for Collection by Customers pursuant to the requirements of Article 4 and Exhibit B. 204
For a four-Container system: Providing a four-Container Collection program for the separate 205
Collection of Recyclable Materials, Yard Trimmings, Food Waste, and Solid Waste generated by 206
and placed for Collection by Customers pursuant to the requirements of Article 4 and Exhibit B. 207
{Note to proposers: Proposers shall submit a proposal for a three-Container (base proposal) and a 208
four-Container system (required proposal alternative). While some areas highlight the differences 209
between a three- and four-Container system, the draft franchise agreement is structured for a 210
three-Container system, and additional customization will be necessary if a four-Container system 211
is selected. The agreement will be modified to match the proposed Container system based on the 212
City’s selection.} 213
B. Transporting Collected materials to the appropriate Approved Facilities pursuant to requirements 214
of Article 4 and Exhibit B; 215
C. Processing Collected Recyclable Materials and Organic Materials at the appropriate Approved 216
Facilities pursuant to the requirements of Article 4 and Exhibit B; 217
D. Performing all other services required by this Agreement including, but not limited to, Customer 218
billing, public education, Customer service, contamination monitoring, record keeping, and 219
reporting pursuant to Articles 4 and 6 and Exhibits C (Public Education & Outreach) and D 220
(Reporting); 221
E. Furnishing all labor, supervision, vehicles, Containers, other equipment, materials, supplies, and 222
all other items and services necessary to perform its obligations under this Agreement; 223
F. Paying all expenses related to provision of services required by this Agreement including, but not 224
June 9, 2020 Item #10 Page 93 of 286
limited to, taxes, regulatory fees (including City fees), and utilities; 225
G. Performing or providing all services necessary to fulfill its obligations in full accordance with this 226
Agreement at all times using best industry practice for comparable operations; and, 227
H. Complying with all Applicable Laws. 228
The enumeration and specification of particular aspects of service, labor, or equipment requirements shall 229
not relieve Contractor of the duty to perform all other tasks and activities necessary to fulfill its obligations 230
under this Agreement, regardless of whether such requirements are enumerated elsewhere in the 231
Agreement, unless excused in accordance with Section 10.7. 232
3.2 USE OF APPROVED FACILITIES 233
The Contractor, without constraint and as a free-market business decision in accepting this Agreement, 234
agrees to use the Approved Facilities for the purposes of Processing and/or Disposing of all Recyclable 235
Materials, Organic Materials, Solid Waste, and other materials Collected in the City. Use of a facility must 236
be approved, in writing, by the City prior to use consistent with the requirements of Article 4. Such 237
decision by Contractor in no way constitutes a restraint of trade notwithstanding any Change in Law 238
regarding flow control limitations or any definition thereof. 239
3.3 SUBCONTRACTING 240
Contractor shall not engage any Subcontractors for Collection, Transportation, or Processing of Recyclable 241
Materials, Organic Materials, or Solid Waste services without the prior written consent of City Contract 242
Manager. As of the Effective Date of this Agreement, City has approved Contractor’s use of those 243
subcontractors identified in Contractor’s Proposal, included herein as Exhibit G5. If the Contractor plans 244
to engage other affiliated or related party entities in the provision of services, Contractor shall provide 245
City Contract Manager with thirty (30) days written notification of its plans and provide an explanation of 246
any potential impacts related to the quality, timeliness, or cost of providing services under this 247
Agreement. All insurance documents must be reviewed and approved by the City’s Risk Manager prior to 248
City acceptance. Contractor shall require that all Subcontractors file insurance certificates with the City, 249
name City as an additional insured, and comply with all material terms of this Agreement. 250
3.4 RESPONSIBILITY FOR MATERIALS 251
Once Recyclable Materials, Organic Materials, and/or Solid Waste are placed in the Contractor’s 252
Containers and at the Collection location, the responsibility for their proper handling shall transfer directly 253
from the Generator to Contractor, with the exception of Excluded Waste if the Contractor can identify the 254
Generator pursuant to Section 5.8.B. Once Recyclable Materials, Organic Materials, and/or Solid Waste 255
are deposited by Contractor at the appropriate Approved Facility, such materials shall become the 256
responsibility of the Owner or operator of the Approved Facility except for Excluded Waste pursuant to 257
Section 5.8.C. 258
Responsibility for Excluded Waste that has been inadvertently Collected by the Contractor shall remain 259
with the Contractor if it cannot identify the Generator, and Contractor shall assume all responsibility for 260
its proper Disposal. 261
June 9, 2020 Item #10 Page 94 of 286
3.5 CITY-DIRECTED CHANGES TO SCOPE 262
City may require a proposal from Contractor to establish the scope of any modification to existing services 263
(which may include use of Approved Facilities) to be provided under this Agreement. In such case, 264
Contractor shall present, within thirty (30) calendar days of City’s request, unless an alternate schedule is 265
mutually agreed-upon, a written proposal to provide such modified or additional services. City shall review 266
the Contractor’s proposal for the change in scope of services. City and Contractor may meet and confer 267
to negotiate Contractor’s proposed revisions and costs and shall amend this Agreement, as appropriate, 268
to reflect the mutually agreed-upon changes in scope. If the City and Contractor are unable to agree on 269
terms and conditions, including compensation adjustments, of such services within ninety (90) calendar 270
days from City receipt of Contractor’s proposal for such services, the City may permit other Persons to 271
provide such services. Nothing herein shall prevent the City from soliciting cost and operating information 272
from other Persons in order to inform the City’s evaluation of Contractor’s proposal. 273
At any time during the Term of this Agreement, the City may solicit proposals from other Persons for 274
services not contemplated under this Agreement. In the event that contracting with other Persons for 275
such services will reduce Contractor’s compensation under this Agreement, as described in Article 8, the 276
Contractor shall be offered the opportunity to match any other Person’s proposed pricing, and retain the 277
added scope of services. However, nothing in this Agreement shall prevent the City from contracting with 278
other Persons in the event that Contractor is unable or unwilling to provide such services at or below the 279
cost proposed by the other Person. 280
ARTICLE 4. 281 SCOPE OF SERVICES 282
Contractor shall perform the Recyclable Materials, Organic Materials, Solid Waste, and Bulky Item services 283
described in this Article 4. This Article 4 describes the general requirements for the services to be 284
provided. More specific requirements for how each service shall be provided to each Customer Type are 285
described in Exhibit B. Failure to specifically require an act necessary to perform the service does not 286
relieve Contractor of its obligation to perform such act. 287
{Note to Proposers: References to Subcontractors in this Article will be updated based on the proposed 288
Processing Facility ownership.} 289
4.1 RECYCLABLE MATERIALS 290
A. Collection. Contractor shall provide Recyclable Materials Collection services as described in 291
Exhibit B. 292
B. Transfer. {Note to Proposers: If a Transfer Station will be used to consolidate Recyclable Materials 293
for Transport to the Approved Recyclable Materials Processing Facility the following paragraph 294
will be used. If no Transfer services will be required, the paragraph will be deleted.} Contractor 295
plans to Transport Recyclable Materials to the Approved Transfer Facility where the materials will 296
be unloaded from Collection vehicles and loaded into large-capacity vehicles and Transported to 297
the Approved Recyclable Materials Processing Facility. Contractor shall keep all existing permits 298
and approvals necessary for use of the Approved Transfer Facility in full regulatory compliance. 299
Upon request, Contractor shall provide copies of facility permits and/or notices of violations 300
(obtained from its Transfer Facility Subcontractor if necessary) to City Contract Manager. If the 301
June 9, 2020 Item #10 Page 95 of 286
Contractor is unable to use the Approved Transfer Facility, then the Contractor shall be 302
responsible for making other Transportation arrangements. In such event, Contractor shall not be 303
compensated for any additional costs. If the Contractor plans to change its Transfer method, 304
Contractor shall obtain written approval from the City prior to making the change. 305
C. Processing. Contractor shall Transport and deliver all Source Separated Recyclable Materials 306
placed in Recyclable Material Containers in the City to the Approved Recyclable Materials 307
Processing Facility. All tipping fees and other costs associated with Transporting to and Processing 308
of such Recyclable Materials at the Approved Recyclable Materials Processing Facility and 309
Disposing of the Residue as required in Section 4.1.E below shall be paid by Contractor. 310
Contractor guarantees sufficient capacity at the Approved Recyclable Materials Processing Facility 311
to Process all Source Separated Recyclable Materials Collected by Contractor under this 312
Agreement throughout the Term of the Agreement. 313
Contractor shall keep all existing permits and approvals necessary for use of the Approved 314
Recyclable Materials Processing Facility in full regulatory compliance. Upon request, Contractor 315
shall provide copies of facility permits and/or notices of violations (obtained from its Processing 316
Facility Subcontractor if necessary) to City Contract Manager. 317
If Contractor is unable to use the Approved Recyclable Materials Processing Facility due to an 318
event that meets the requirements for excusing Contractor from performance of this specific 319
obligation as described in Section 10.7, Contractor shall use an alternative Processing Facility 320
provided that the Contractor provides written notice to City Contract Manager. Within forty-eight 321
(48) hours of such emergency or sudden and unforeseen closure, the Contractor shall provide a 322
written description of the reasons the use of the Approved Recyclable Materials Processing 323
Facility is not feasible and the period of time Contractor proposes to use the alternative Processing 324
Facility. Such a change in Processing Facility shall be temporarily permitted until such time as the 325
City Contract Manager is able to consider and respond to the use of the proposed alternative 326
Processing Facility. If the use of the proposed alternative Processing Facility is anticipated to or 327
actually does exceed thirty (30) days in a consecutive twelve (12)month period, the use of such 328
Processing Facility shall be subject to approval by the City Contract Manager. The City Contract 329
Manager may, in their sole discretion, approve, conditionally approve, temporarily approve, or 330
disapprove of the use of the proposed alternative Processing Facility. If the City disapproves the 331
use of the proposed alternative Processing Facility, the Parties shall meet and confer to determine 332
an acceptable Processing Facility. 333
If the use of an alternative Processing Facility is for reasons within Contractor’s, or its Processing 334
Facility Subcontractor’s control, Contractor’s Compensation shall not be adjusted for any change 335
in Transportation and Processing costs associated with use of the alternative Processing Facility. 336
However, if the use of an alternative Processing Facility is due to reasons beyond Contractor’s or 337
its Subcontractor’s control, then City shall adjust, either up or down, Contractor’s Compensation 338
for changes in Transportation and Processing costs associated with the use of the alternative 339
Processing Facility. The performance of Recyclable Materials commodity markets shall not be 340
considered an acceptable basis for use an alternative Processing Facility nor shall it serve as the 341
basis for any adjustment in Contractor’s compensation under this Agreement, other than as 342
specifically contemplated in Exhibit E to this Agreement. If the change in the Processing Facility 343
results in increased costs, City may identify and direct Contractor to an alternative Processing 344
June 9, 2020 Item #10 Page 96 of 286
Facility, without additional compensation to Contractor, which results in less cost than the 345
Contractor-identified alternative. 346
Except for the emergency conditions described in this section, Contractor shall not change its 347
selection of the Approved Recyclable Materials Processing Facility without City’s written approval, 348
which may be withheld in the City’s sole discretion. If Contractor elects to use a Recyclable 349
Materials Processing Facility that is different than the initial Approved Recyclable Materials 350
Processing Facility, it shall request written approval from the City Contract Manager sixty (60) 351
calendar days prior to use of the site and obtain City’s written approval no later than ten (10) 352
calendar days prior to use of the site. Failure to meet the requirements of this Section shall result 353
in Liquidated Damage as identified in Exhibit F. 354
Contractor shall observe and comply with all regulations in effect at the Approved Recyclable 355
Materials Processing Facility and cooperate with and take direction from the operator thereof 356
with respect to delivery of Recyclable Materials. Contractor shall actively work with the Approved 357
Recyclable Materials Processing Facility operator throughout the Term of this Agreement to 358
ensure that contamination of the Recyclable Materials Collected under this Agreement and 359
delivered to the Processing Facility remains below the limits established by Applicable Law 360
including, without limitation, SB 1383. 361
D. Marketing. The Contractor shall be responsible for marketing Recyclable Materials Collected in 362
City that are delivered for Processing at Contractor’s Approved Recyclable Materials Processing 363
Facility. Contractor’s marketing strategy shall promote the highest and best use of materials 364
presented in the waste management hierarchy established by AB 939. Where practical, the 365
marketing strategy should include use of local, regional, and domestic markets for Recyclable 366
Materials. 367
E. Residue Disposal. Residue from the Processing of Source Separated Recyclable Materials 368
Collected under this Agreement at Contractor’s Approved Recyclable Materials Processing 369
Facility, which cannot be marketed, shall be Disposed of by Contractor, or the Processing Facility 370
Subcontractor. Residue delivered for Disposal shall not include any Excluded Waste. 371
4.2 ORGANIC MATERIALS 372
A. Collection. Contractor shall provide Organic Materials Collection services as described in Exhibit 373
B. 374
B. Transfer. {Note to Proposers: If a Transfer Station will be used to consolidate Residential or 375
Commercial Organic Materials for Transport to the Approved Organic Materials Processing Facility 376
the following paragraph will be used. If no Transfer services will be required, the paragraph will 377
be deleted.} Contractor plans to Transport {Residential/Commercial} Organic Materials to the 378
Designated Transfer Facility where the materials will be unloaded from Collection vehicles and 379
loaded into large-capacity vehicles and Transported to the Approved Organic Materials Processing 380
Facility. Contractor shall keep all existing permits and approvals necessary for use of the 381
Designated Transfer Facility in full regulatory compliance. 382
C. Processing. 383
{Note to proposers: Proposers shall submit a proposal for a three-Container (base proposal) and a 384
June 9, 2020 Item #10 Page 97 of 286
four-Container system (required alternative proposal). Organics Processing Proposers may 385
propose one or both of two (2) organic material processing options: (1) Organic Processing 386
facility(ies) to process source separated Food Waste and Yard Trimmings separately (collected in 387
a four Container system); and, (2) Organic Processing facility to process commingled Food Waste 388
and Yard Trimmings (collected in a three Container system). While some areas highlight the 389
differences between a three- and four-Container system, the draft franchise agreement is 390
structured for a three-Container system, and additional customization will be necessary if a four-391
Container system is selected. The agreement will be modified to match the proposed Container 392
system based on the City’s selection.} 393
1. General. Contractor shall Transport and deliver all Source Separated Organic Materials 394
placed in Organic Material Containers in the City to the Approved Organic Materials 395
Processing Facility. All tipping fees and other costs associated with Transporting such 396
Organic Materials to the Approved Organic Materials Processing Facility and Disposing of 397
the Residue as required in Section 4.2.E below shall be paid by Contractor. 398
i. Capacity Guarantee. Contractor guarantees sufficient capacity at the 399
Approved Organic Materials Processing Facility to Process all Source 400
Separated Commercial Organic Materials Collected by Contractor under 401
this Agreement throughout the Term of the Agreement. 402
ii. Compliance with Regulatory Requirements and Applicable Law. 403
Contractor shall keep all existing permits and approvals necessary for use 404
of the Approved Organic Materials Processing Facility in full regulatory 405
compliance. Upon request, Contractor shall provide copies of facility 406
permits and/or notices of violations (obtained from its Processing Facility 407
Subcontractor if necessary) to City Contract Manager. 408
iii. Notification of Emergency Conditions. Each Approved Facility shall notify 409
the Jurisdiction of any unforeseen operational restrictions that have been 410
imposed upon the Facility by a regulatory agency or any unforeseen 411
equipment or operational failure that will temporarily prevent the Facility 412
from Processing the Discarded Materials Collected under this Agreement. 413
iv. Approved Facility(ies) Unavailable/Use of Alternative Facility(ies). If 414
Contractor is unable to use the Approved Organic Materials Processing 415
Facility due to an event that meets the requirements for excusing 416
Contractor from performance of this specific obligation as described in 417
Section 10.7, Contractor shall use an alternative Processing Facility 418
provided that the Contractor provides written notice to City Contract 419
Manager. Within forty-eight (48) hours of emergency or sudden and 420
unforeseen closure, the Contractor shall provide a written description of 421
the reasons the use of the Approved Commercial Organic Materials 422
Processing Facility is not feasible and the period of time Contractor 423
proposes to use the alternative Processing Facility. Such a change in 424
Processing Facility shall be temporarily permitted until such time as the 425
City Contract Manager is able to consider and respond to the use of the 426
proposed alternative Processing Facility. If the use of the proposed 427
June 9, 2020 Item #10 Page 98 of 286
alternative Processing Facility is anticipated to or actually does exceed 428
thirty (30) days in a consecutive twelve (12) month period, the use of such 429
Processing Facility shall be subject to approval by the City Contract 430
Manager. The City Contract Manager may, in their sole discretion, 431
approve, conditionally approve, temporarily approve, or disapprove of 432
the use of the proposed alternative Processing Facility. If the City 433
disapproves the use of the proposed alternative Processing Facility, the 434
Parties shall meet and confer to determine an acceptable Processing 435
Facility. 436
If the use of an alternative Processing Facility is for reasons within 437
Contractor’s, or its Processing Facility Subcontractor’s control, 438
Contractor’s Compensation shall not be adjusted for any change in 439
Transportation and Processing costs associated with use of the 440
alternative Processing Facility. However, if the use of an alternative 441
Processing Facility is due to reasons beyond Contractor’s or its 442
Subcontractor’s control, then City shall adjust, either up or down, 443
Contractor’s Compensation for changes in Transportation and Processing 444
costs associated with the use of the alternative Processing Facility. In the 445
event that the change in the Processing Facility results in increased costs, 446
City may identify and direct Contractor to an alternative Processing 447
Facility, at the contractor’s expense, which results in less cost than the 448
Contractor-identified alternative. 449
Except for the emergency conditions described in this section, Contractor shall not change 450
its selection of the Approved Commercial Organic Materials Processing Facility without 451
City’s written approval, which may be withheld in the City’s sole discretion. If Contractor 452
elects to use an Organic Materials Processing Facility that is different than the initial 453
Approved Commercial Organic Materials Processing Facility, it shall request written 454
approval from the City Contract Manager sixty (60) calendar days prior to use of the site 455
and obtain City’s written approval no later than ten (10) calendar days prior to use of the 456
site. Failure to meet the requirements of this Section shall result in Liquidated Damage as 457
identified in Exhibit F. 458
Contractor shall observe and comply with all regulations in effect at the Approved 459
Commercial Organic Materials Processing Facility and cooperate with and take direction 460
from the operator thereof with respect to delivery of Organic Materials. Contractor shall 461
actively work with the Approved Organic Materials Processing Facility operator 462
throughout the Term of this Agreement to ensure that contamination of the Organic 463
Materials Collected under this Agreement and delivered to the Processing Facility remains 464
below the limits established by Applicable Law including, without limitation, SB 1383. 465
2. Compostable Plastics. Customers may place Compostable Plastics in the Organic 466
Materials Container for Collection, including compostable plastic bags used by Customers 467
to contain Food Waste prior to placement in the Organic Materials Container for 468
Collection. Contractor may prohibit use of Compostable Plastics to contain Yard 469
Trimmings. Contractor shall Collect and Transport such materials for processing at the 470
Approved Organic Waste Processing Facility. At least six (6) months prior to the 471
June 9, 2020 Item #10 Page 99 of 286
commencement of the Agreement, and annually thereafter, Contractor shall provide a 472
written notification to the City authorizing that the Facility has and will continue to have 473
the capability to Process and recover the Compostable Plastics throughout the term of 474
the Agreement; and the Contractor shall not revoke this authorization at any time during 475
the term of the Agreement. If the Contractor does not submit such notification, or if at 476
any time during the Term of the Agreement the Approved Organic Waste Processing 477
Facility can no longer accept and/or process Compostable Plastics, the City may assess 478
Liquidated Damages or deem such failure an event of default of the Contractor under 479
Article 10. Contractor shall notify the City within seven (7) days of the Facility’s inability 480
to accept the Compostable Plastics. The notification shall, at a minimum, include: the date 481
and a description of the reasons that the Facility is not able to Process and recover the 482
Compostable Plastics; the period of time the Facility will not Process and recover these 483
materials; and, the Contractor’s proposed plan to find an alternative Facility or 484
arrangement to Process the Compostable Plastics, subject to City approval. City may 485
prohibit or restrict the use of Compostable Plastics, with a six (6) month notice to 486
Contractor, and this shall not constitute a City-Directed Change in Scope or Change in Law 487
under this Agreement. 488
D. Marketing. The Contractor shall be responsible for marketing Commercial Organic Materials 489
Collected in the City that are delivered for Processing at the Approved Commercial Organic 490
Materials Processing Facility. Contractor’s marketing strategy shall promote the highest and best 491
use of materials presented in the waste management hierarchy established by AB 939. Where 492
practical, the marketing strategy should include use of local markets for Organic Materials. 493
E. Residue Disposal. Residue from the Processing of Commercial Organic Materials Collected under 494
this Agreement at the Approved Commercial Organic Materials Processing Facility, which cannot 495
be marketed, shall be Disposed of by Contractor, or the Processing Facility Subcontractor. Residue 496
delivered for Disposal shall not include any Excluded Waste. 497
4.3 SOLID WASTE 498
Contractor shall offer and provide Solid Waste Collection services as described in Exhibit B. 499
Contractor acknowledges that City is committed to Diverting materials from Disposal through the 500
implementation of source reduction, reuse, Recycling, Composting, and other programs, and that City 501
may implement new programs, with or without the involvement of the Contractor, that may impact the 502
overall quantity or composition of Solid Waste to be Collected by Contractor. Contractor shall not be 503
entitled to any compensation or other relief resulting from a decline in Solid Waste volumes or tonnage 504
or from a change in the composition of Solid Waste. 505
Contractor plans to Transport Solid Waste to the Designated Transfer Facility where the materials will be 506
unloaded from Collection vehicles and loaded into large-capacity vehicles and Transported to the 507
Designated Disposal Facility. Contractor shall keep all existing permits and approvals necessary for use of 508
the Approved Transfer Facility in full regulatory compliance. Upon request, Contractor shall provide copies 509
of facility permits and/or notices of violations (obtained from its Transfer Facility Subcontractor if 510
necessary) to City Contract Manager. If the Contractor is unable to use the Designated Transfer Facility, 511
then the Contractor shall be responsible for making other Transportation arrangements. In such event, 512
Contractor shall not be compensated for any additional costs. If the Contractor plans to change its Transfer 513
June 9, 2020 Item #10 Page 100 of 286
method, Contractor shall obtain written approval from the City prior to making the change. 514
Contractor shall Transport all Solid Waste Collected in City to the Designated Disposal Facility. Contractor 515
shall pay all costs associated with Transportation and Disposal of Solid Waste including payment of any 516
gate fees charged at the Designated Disposal Facility. Contractor shall observe and comply with all 517
regulations and posted rules in effect at the Designated Disposal Facility and cooperate with and take 518
direction from the operator thereof with respect to delivery of Solid Waste. 519
4.4 BULKY ITEMS AND REUSABLE MATERIALS 520
Contractor shall offer Bulky Item and Reusable Materials Collection services as described in Exhibit B. 521
Bulky Item and Reusable Materials Collection services shall be provided three (3) times per year, for up to 522
5 items, as approved by the City Contract Manager, pursuant to Exhibit B. On-call Bulky Item and Reusable 523
Materials Collection services shall be offered to Customers within one (1) Working Days of Contractor’s 524
receipt of such a Customer request for service, pursuant to Exhibit B Contractor shall make reasonable 525
efforts to schedule on-call Bulky Item and Reusable Materials Collections on a day that is convenient to 526
the Customer. Contractor shall Transport all Bulky Items or Reusable Materials Collected under this 527
Agreement to the Approved Reusable Materials Processing Facility. Contractor shall pay all costs 528
associated with Transporting and Processing Bulky Items and Reusable Materials. Contractor shall observe 529
and comply with all regulations in effect at the Approved Reusable Materials Processing Facility and 530
cooperate with and take direction from the operator thereof with respect to delivery of Bulky Items 531
and/or Reusable Materials. 532
4.5 SPECIAL EVENTS 533
Contractor shall provide Recyclable Materials, Organic Materials, and Solid Waste services to up to five 534
(5) special events per Rate Period, at no cost to the event or City. Contractor shall provide the special 535
event services to other events that are sponsored by City upon thirty (30) calendar days advance request 536
by the City Contract Manager. Special event services include all of the following unless specifically waived 537
in writing by City Contract Manager. 538
A. Event Collection Stations. Contractor shall provide and set-up event Collection stations for 539
Collection of Recyclable Materials, Organic Materials, and Solid Waste at City-sponsored special 540
events. Each event Collection station shall include a separate Cart for each of Recyclable 541
Materials, Organic Materials, and Solid Waste, as appropriate. Contractor shall provide a sufficient 542
number of event Collection stations of sufficient capacity to meet the needs of the event as 543
determined by Contractor in cooperation with the event organizer. Collection stations shall utilize 544
the same Carts used to provide services to Residential Customers, unless alternative containers 545
are approved by the City. Contractor shall provide liners/bags for the Carts at the Collection 546
stations, and shall line the Carts as a part of the station set-up. Collection stations shall include 547
adequate signs and labeling. 548
B. Collection Station Monitors. Upon request, Contractor shall provide up to six (6) Collection 549
station monitors who shall be present for the duration of each special event. Contractor shall 550
require Collection station monitors to monitor event Collection stations and educate event 551
attendees and vendors about what materials are acceptable in each Collection station Cart. The 552
City shall be responsible for transporting materials contained in event Collection stations to Drop 553
Boxes, which will subsequently be Collected by the Contractor. Station monitors will also sort 554
June 9, 2020 Item #10 Page 101 of 286
materials both at the Collection stations and at the Drop Boxes to ensure that they are properly 555
separated. 556
C. Drop Boxes. Upon request, Contractor shall provide Containers for the aggregation of material 557
removed from event Collection stations during the course of the event. Contractor shall provide 558
Containers in sufficient number of appropriate type(s) for the needs of the event as determined 559
by Contractor in cooperation with the event organizer. Contractor shall service Containers, as 560
agreed-upon with the event organizer, and deliver Collected materials to the appropriate 561
Approved Facility for Processing and/or Disposal. 562
D. Public Education Booth. Upon request of either the City Contract Manager or the event organizer, 563
Contractor shall staff a booth or exhibit at the event for the purpose of educating the public about 564
the services and programs provided by Contractor under this Agreement and the benefits of 565
source reduction, reuse, Recycling, and Composting. 566
E. Reporting. Within fourteen (14) calendar days of the end of the event, Contractor shall submit a 567
report to the City Contract Manager and event organizer. The report should include, at a 568
minimum: the number of event collection stations deployed at the event, the number of 569
collection station monitors, the tonnage of each material type (i.e., Recyclable Materials, Organic 570
Materials, and Solid Waste) collected, and a description of the public education provided at the 571
event. 572
Contractor may, at its sole discretion and expense, coordinate with local youth, community, or charitable 573
organizations to provide some or all of the required services. Regardless of Contractor’s use of such an 574
organization, Contractor shall be responsible for ensuring that service is provided to the Customer in a 575
professional and timely manner. 576
For special events which are not identified in Exhibit B5 or otherwise hosted or sponsored by the City, 577
Contractor shall provide the above-described special event services at the request of the event organizer 578
and may negotiate the charges for such services with the event organizer based on the specific needs of 579
the event. 580
4.6 PUBLIC EDUCATION AND OUTREACH 581
The public education and outreach activities included in the scope of services provided by Contractor 582
under this Agreement are described in Exhibit C. Contractor shall produce and distribute public education 583
and outreach materials upon City request, and contribute any remaining funds in Contractor’s annual 584
public education budget to the City to support the City’s public education and outreach efforts. 585
A. Program Objectives. The City shall be responsible for designing and conducting a public education 586
and outreach program, and the Contractor shall be responsible for the production and distribution 587
of all materials under this program in accordance with this Agreement. The City’s public education 588
and outreach strategy shall focus on improving Generator understanding of the benefits of and 589
opportunities for source reduction, Reuse, and Landfill Disposal reduction and supporting 590
compliance with applicable laws and regulations, including, but not limited to AB 341, AB 1826, 591
and SB 1383. Examples of goals of the City-provided public education and outreach program 592
include, but are not limited to: (i) informing Generators about the services that are provided under 593
this Agreement with specific focus on describing the methods and benefits of source reduction, 594
Reuse, Recycling, and Composting; (ii) instructing Generators on the proper method for placing 595
June 9, 2020 Item #10 Page 102 of 286
materials in Containers for Collection and setting Containers out for Collection, with specific focus 596
on minimizing contamination of Recyclable Materials and Organic Materials; (iii) clearly defining 597
Excluded Waste and educating Generators about the hazards of such materials and their 598
opportunities for proper handling; (iv) discouraging Generators from buying products if the 599
product and its packaging are not readily reusable, Recyclable, or compostable; (v) informing 600
Generators subject to Food Recovery requirements under SB 1383 of their obligation to recover 601
Edible Food and actions they can take to prevent the creation of Food Waste; (vi) encouraging the 602
use of Compost and recovered Organic Waste products; and, (vii) encouraging Generators to 603
purchase products/packaging made with Recycled content materials. The cumulative intended 604
effect of these efforts is to reduce generation of Solid Waste and, ultimately, Disposal of Solid 605
Waste by each Generator in the City, and Contractor agrees to support and not undermine or 606
interfere with such efforts. 607
B. Contractor Public Education Requirements. Contractor agrees to print, produce, and distribute 608
education materials and conduct outreach, as required by the City, based on the City’s adopted 609
program, the extent of these requirements may be similar to the example public education and 610
outreach requirements detailed in Exhibit C. 611
Contractor acknowledges that they are part of a multi-party effort to operate and educate the 612
public about the regional integrated waste management system. Contractor shall cooperate and 613
coordinate with the City Contract Manager on public education activities to minimize duplicative, 614
inconsistent, or inappropriately timed education campaigns. 615
Contractor shall obtain approval from the City Contract Manager on all Contractor-provided 616
advertising, promotional, or service-related materials used within the City before publication, 617
distribution, and/or release. The City Contract Manager, in their sole discretion, shall have the 618
right to deny the use of any materials or content or may request that Contractor include City 619
identification and contact information on materials and Contractor’s approval of such requests 620
shall not be unreasonably withheld. 621
4.8 BILLING 622
Contractor shall bill all Customers and be solely responsible for collecting billings at Rates set in 623
accordance with Article 8. Billing shall be performed on the basis of services rendered and this Agreement 624
shall create no obligation on the part of any Person on the sole basis of the ownership of property. 625
Individual contracts between Contractor and a Customer for services provided under this Agreement shall 626
be prohibited. 627
{Note to Proposer: The City currently performs residential billing. The City’s intent is to transition all billing 628
to the Contractor. The language below describes the desired future system. Some language may need to 629
be added to describe the billing transition and obligations of the parties around that.} 630
Contractor shall bill all Single-Family Residential Customers monthly in advance of services provided. 631
Contractor shall bill all Commercial and Multi-Family Customers for scheduled and regularly recurring 632
services on a monthly basis in advance of services provided. Contractor shall bill Customers for any on-633
call and/or non-recurring services no more frequently than monthly and may only bill for services provided 634
during the previous month. Contractor shall remit invoices to Customers no earlier than the twentieth 635
(20th) day of the month proceeding the period for which service is being billed. 636
June 9, 2020 Item #10 Page 103 of 286
Contractor shall develop, maintain, and regularly u a Customer Account Information database, which shall 637
include but is not limited to: 638
i. Customer name; 639
ii. Phone number; 640
iii. Service address; 641
iv. Email address; and, 642
v. Customer service levels, including: 643
a. Customer service levels exceptions, and, 644
b. Customer service waivers. 645
Contractor shall make such database available, upon no more than five (5) Working Days request from 646
the City Contract Manager, in accordance with this Section and Section 6.1. Contractor shall additionally, 647
on an annual basis, reconcile all Customer accounts with City’s GIS information. Failure to maintain 648
database in accordance with this Section shall result in Liquidated Damages as identified in Exhibit F. 649
{Note to Proposer: The City prefers that Customers are billed electronically. Contractor to propose 650
incentivized electronic billing options.} 651
Contractor shall bill Customers electronically using paperless invoices, however Contractor shall bill 652
Customers who decline or are otherwise unable to provide email contact information by standard mail, 653
using standard (paper) invoices. Contractor shall permit Customers the ability to pay their bills through an 654
electronic check or credit card and include the ability for Customer billings to be automatically charged 655
on a recurring basis. Contractor shall prepare, mail, and collect bills from Customers who decline to use 656
such internet-based billing system. Contractor shall make arrangements to allow such Customers to pay 657
bills by cash, check, electronic check, money order, and credit card. 658
Up to twelve (12) times per calendar year, City may direct Contractor to attach inserts to Customer 659
invoices. Contractor shall provide electronic bill inserts to customers who are billed electronically, and 660
paper bill inserts to customers who receive paper bills. Electronic bill inserts/attachments must be readily 661
available for the Customer to view upon receipt of the invoice (attachments shall not be provided as links). 662
Upon City request for such attachments, Contractor shall comply with such request during its next billing 663
cycle for the targeted Customer group. Contractor shall perform this service with no additional 664
requirement for compensation. 665
Contractor shall maintain copies of all billings and receipts, each in chronological order, for the Term of 666
this Agreement, for inspection and verification by the City Contract Manager at any reasonable time but 667
in no case more than thirty (30) calendar days after receiving a request to do so. 668
Contractor shall be responsible for collection of payment from Customers with past due accounts (“bad 669
debt”) in accordance with this Section 4.8. Contractor shall make reasonable efforts to obtain payment 670
from delinquent accounts through issuance of late payment notices, telephone requests for payments, 671
and assistance from collection agencies. 672
June 9, 2020 Item #10 Page 104 of 286
Monthly Customer invoices shall be due thirty (30) calendar days from the first day of the billing period. 673
In the event that any account becomes more than thirty (30) calendar days past due, Contractor shall 674
notify such Customer of the delinquency via written correspondence, instructing the Customer that 675
unpaid bills which become more than forty-five (45) calendar days delinquent may be assessed a one and 676
one half percent (1.5%) late fee per month. Contractor shall provide a second written notice of 677
delinquency to any account which becomes more than sixty (60) calendar days past due, and a third 678
written notice of delinquency to any account which becomes more than ninety (90) calendar days past 679
due. Should any account become more than one hundred and twenty (120) calendar days past due, 680
Contractor may discontinue providing service to the Customer. No less than seven (7) calendar days prior 681
to discontinuing service to a Customer, Contractor shall notify the City Contract Manager of the address, 682
Service Level, service frequency, and delinquent billing amount. Contractor may withhold service from a 683
delinquent account until past delinquencies are paid in full. Upon restoring service to a previously 684
delinquent account, Contractor may require a deposit from the Customer not to exceed one (1) month’s 685
billings at the Customer’s Service Level. 686
If Contractor fails to invoice a Customer, or otherwise under-charges a customer for services provided for 687
more than six months, Contractor may not subsequently attempt to collect the under-charged amount 688
for more than six months of service. If Contractor over-charges a Customer for a period of more than six 689
months, Contractor shall reimburse or credit the Customer for at least six months of the over-charged 690
service, but is not required by this Agreement to reimburse or credit the Customer for more than six 691
months of overcharges. This Agreement also does not prohibit Contractor from reimbursing or crediting 692
a Customer for more than six months of overcharges. 693
If a Customer reduces or cancels service during a billing cycle, the Customer shall be entitled to a proration 694
of the billing from the date that the service change was requested, in the case of cancellations or 695
reductions in the Customer’s bill, or the date the service change was fulfilled, in the case of increases in 696
the Customer’s bill. 697
4.9 CUSTOMER SERVICE PROGRAM 698
4.9.1 Program Requirements 699
A. Availability of Representatives. A representative of the Contractor who is knowledgeable of the 700
service area, services, and rates shall be available from 8 a.m. to 5 p.m. Monday through Friday 701
to communicate with the public by telephone. Contractor shall maintain a local or toll-free 702
telephone number which it shall publicize. Contractor shall also maintain an after-hours 703
telephone number allowing twenty-four (24) hour per day access to Contractor management by 704
City Contract Manager in the event of an emergency involving Contractor’s equipment or services 705
including, but not necessarily limited to, fires, blocked access, or property damage. 706
B. Telephone. City shall secure, and Contractor shall use, pay all costs incurred by, and maintain 707
during the Term of this Agreement, a toll-free phone number which shall serve as the primary 708
point of contact between Contractor and the public during normal business hours. Upon 709
expiration or early termination of this Agreement, the City shall retain the control of the toll-free 710
phone number. The Contractor shall provide the City with a separate emergency telephone 711
number for use by the City Contract Manager outside normal business hours. The Contractor shall 712
have contact such representative, available at the emergency telephone number during all hours 713
other than normal office hours. 714
June 9, 2020 Item #10 Page 105 of 286
Contractor shall maintain a telephone system in operation from 9 a.m. to 7 p.m. and shall have 715
sufficient equipment in place and staff a representative, or an answering service to available to 716
handle the volume of calls experienced on the busiest days and such telephone equipment shall 717
be capable of recording the responsiveness to calls. Contractor’s telephone system shall offer 718
Customers who have been placed on-hold to opt to leave a voice message or email, rather than 719
remain on-hold. If Contractor’s telephone customer service performance falls below the 720
performance standards established in Exhibit F, the City shall have the right to require Contractor 721
to increase its staffing levels and/or call handling capacity without requirement for any additional 722
compensation to the Contractor. Recording of Contractor’s responsiveness to calls shall include, 723
at a minimum, all items included in the “Service Quality and Reliability” and “Customer Service” 724
performance standards listed in Exhibit F. An answering machine or voicemail service shall record 725
Customer calls and voice messages between 7:00 p.m. and 9:00 a.m. Contractor shall provide a 726
live, not automated, call back on the same day to all Customers who leave voice messages by 5:00 727
p.m. on Working Day and shall provide a live call back by noon of the following Working Day for 728
any voice messages left after 5:00 p.m. 729
C. Web Site and Email Access. Contractor shall develop and maintain a web site that is accessible by 730
the public and solely dedicated to the operations under this Agreement in the City. Contractor’s 731
web site shall include all rates allowed to be charged under the Agreement, all public education 732
and outreach materials produced and distributed under this Agreement, and provide the public 733
the ability to e-mail Contractor questions, service requests, or Complaints. Contractor shall 734
respond the same day to all Customers who leave e-mail messages by 5:00 p.m. on a Working Day 735
and shall respond by noon of the following Working Day for any e-mail messages left after 5:00 736
p.m. Contractor may respond to Customer e-mails either via e-mail or phone. 737
4.9.2 Service Requests, Compliments, Complaints 738
Contractor shall be responsible for the prompt and courteous attention to, and prompt and reasonable 739
resolution of, all Customer service requests and Complaints. Contractor shall record, in its computer 740
system or a separate log, approved as to form by City Contract Manager, all Complaints, noting the name 741
and address of Complainant, date and time of Complaint, nature of Complaint, and nature and date of 742
resolution. The Contractor shall retain this Complaint log for the Term. Contractor shall record and 743
respond to all Complaints as communicated by the Customer, utilizing a “Customer is always right” 744
approach, shall not challenge or dispute the Customer’s assertions or Complaints, and shall always 745
prioritize Customer satisfaction. Upon request by the City Contract Manager, Contractor shall compile and 746
submit a summary statistical table of the Complaint log. 747
Contractor shall respond to all Complaints received in accordance with the requirements of Section 748
4.9.1.B, and 4.9.1.C. Complaints related to missed Collections shall be addressed in accordance with 749
Section 4.9.3. Complaints related to repair or replacement of Carts or Bins, shall be addressed in 750
accordance with Section 5.6. 751
4.9.3 Missed Collections 752
A. Missed Collection Complaints. When handling Customer Complaints related to missed or 753
incomplete Collections, Contractor shall not question or contest the Customer’s claim that the 754
Collection was missed or incomplete, even in cases where the route driver recorded the 755
Container(s) in question as already “collected” or “not out.” If Contractor believes a Customer has 756
pattern of inaccurately reporting missed Collections, Contractor may submit a request to the City 757
June 9, 2020 Item #10 Page 106 of 286
Contract Manager that the Customer be disqualified from receiving future Missed Collection 758
Rebates for a period to be determined by the City Contract Manager. Such application shall include, 759
but not be limited to: a statement explaining why Contractor believes the missed Collections were 760
inaccurately reported; documentation of the Customer’s prior Complaints and resolution thereof; 761
and, call center notes taken during the Complaint calls. 762
B. Schedule for Resolution. Contractor shall resolve every Customer Complaint of a missed or 763
incomplete Collection by returning to the Customer address and completing the Collection. For all 764
Complaints related to missed collections that are received by 3:00 p.m. on a Working Day, the 765
Contractor shall return to the Customer address and Collect the missed materials on the same 766
Working Day on which the missed Collection was reported. For those Complaints related to missed 767
Collections that are received after 3:00 p.m. on a Working Day, the Contractor shall have until the 768
end of the following Working Day to resolve the Complaint. Contractor shall pay Customer rebates 769
for late Collections in accordance with Section 5.13. Contractor’s failure to comply with this Section 770
4.9.3 may result in Liquidated Damages, in accordance with Exhibit F. 771
Contractor shall not be required to return and complete a Collection in response to a Complaint if 772
the Contractor’s driver has left a non-Collection notice in accordance with Section 5.8. 773
C. Courtesy Collections for Admitted Late Set-Outs. In the event that a Customer: (i) reports that their 774
Container(s) were placed for Collection after Contractor’s Collection vehicle had already passed the 775
Premises for regularly scheduled Collection; (ii) does not claim that Contractor missed the 776
Collection; and, (iii) requests that the Contractor return and Collect their Containers, Contractor 777
shall return to the Customer Premises and provide a courtesy Collection at no charge to the 778
Customer. Contractor is not required to provide more than three (3) courtesy Collections for 779
admitted late set-outs per Customer per calendar year. For Residential Customers, one (1) courtesy 780
Collection represents Collection of up to three (3) Carts (Recyclable Materials, Organic Materials, 781
Solid Waste) per incident. Contractor shall complete the courtesy Collection by the end of the 782
following Working Day. Contractor shall not be required to pay Missed Collection Rebates for 783
courtesy Collections not completed on the scheduled Collection day. The provisions of this Section 784
shall only apply if the Customer acknowledges, and Contractor documents in writing, that the event 785
did not constitute a missed or incomplete Collection event by the Contractor. 786
4.9.4 SB 1383 Non-Compliance Complaints 787
For complaints received in which the Person alleges that an entity is in violation of SB 1383 requirements, 788
Contractor shall document the information listed in Exhibit D. Contractor shall provide this information in 789
a brief complaint report to the City for each SB 1383-noncompliance complaint within seven (7) days of 790
receipt of such complaint, and a monthly summary report of SB 1383-non-compliance complaints in 791
accordance with Exhibit D. 792
Upon City request, Contractor shall conduct follow-up inspections and/or outreach to the violating entity, 793
and shall document the information in the reports provided pursuant to Exhibit D. 794
4.10 ACCESS TO CUSTOMER SERVICE AND BILLING SYSTEMS 795
Contractor shall provide access and any necessary training to one (1) or more City employee(s) (as 796
designated by the City) regarding the use of Contractor information systems as described in this Section. 797
Contractor shall designate one (1) member of Contractor staff to work directly with such City employee. 798
June 9, 2020 Item #10 Page 107 of 286
Contractor shall provide such City employee with access to Customer service, call center, and operations 799
information systems in order to validate Contractor performance standards, verify that Customer rebates 800
have been issued in accordance with Section 5.13, and recommend changes to Customer Service Levels 801
to resolve service issues or otherwise address Customer needs. If recommended Service Level changes 802
are made, the designated City staff will work with Contractor’s route manager to make such changes, 803
which shall not be denied by Contractor except for reasons related to Customer, route driver, and/or 804
equipment safety. Contractor shall also provide access to Customer contact information (including email 805
addresses) for purposes of City-provided public education and outreach activities. In addition, Contractor 806
shall ensure that the City Contract Manager and any other City staff, as requested by the City, have read-807
only access to all service order, billing, and Customer service records in Contractor’s internal information 808
systems. Such read-only access is intended to provide the City the ability to review notes related to 809
Customer service and/or billing issues. 810
4.11 SERVICE EXEMPTIONS 811
4.11.1 General Exemptions 812
Upon Customer request, and with written approval from the City Contract Manager, Contractor shall 813
cease providing, and collecting payment for, Collection services to a Premises which is anticipated to be 814
vacant for no less than thirty 30 days. In addition, upon written direction from the City Contract Manager, 815
Contractor shall modify or otherwise cease providing Collection services to Customers requesting other 816
service exemptions, provided that such Customers consistently demonstrate the ability to responsibly 817
manage Discarded Materials generated at the Premises in question, in a manner consistent with 818
Applicable Law. 819
4.11.2 Commercial and Multi-Family Customer Waivers 820
A. General. The City may grant waivers described in this Section to Commercial or Multi-Family 821
Generators that impact the scope of Contractor’s provision of service for those Customers. Waivers 822
issued shall be subject to compliance with SB 1383 requirements, pursuant to 14 CCR Section 823
18984.11, or other requirements specified by the City. 824
B. Types of Generator Waivers 825
1. De Minimis Waivers. The City may waive a Commercial business’ or Multi-Family property’s 826
obligation to comply with some or all of the Recyclable Materials and Organic Materials 827
requirements set forth in this Agreement, SB 1383, and of the Municipal Code if the Generator 828
provides documentation or the City has evidence demonstrating one of the following de 829
minimis conditions: 830
a. The Commercial or Multi-Family Generator’s total Discarded Materials Collection 831
service is two (2) cubic yards or more per week, and Organic Waste subject to Collection 832
in a Recyclable Materials Container or Organic Materials Container comprises less than 833
twenty (20) gallons per week, per applicable Container, of the Commercial business’ 834
total waste; or, 835
b. The Commercial or Multi-Family Generator’s total Discarded Materials Collection 836
service is less than two (2) cubic yards per week, and Organic Waste subject to 837
Collection in a Recyclable Materials Container or Organic Materials Container comprises 838
June 9, 2020 Item #10 Page 108 of 286
less than ten (10) gallons per week, per applicable Container, of the Commercial 839
business’ total waste. 840
2. Physical Space Waivers. The City may waive a Commercial or Multi-Family Generator’s 841
obligation to comply with some or all of the Recyclable Materials and Organic Materials 842
requirements set forth in this Agreement, SB 1383, and the Municipal Code if the Commercial 843
or Multi-Family Generator provides documentation, or the City has evidence from its staff, 844
the Contractor, licensed architect, engineer, or similarly qualified source demonstrating that 845
the Premises lacks adequate space for Recyclable Materials Containers and/or Organic 846
Materials Containers. 847
C. Contractor Review of Waiver Requests. Generators may submit requests for de minimis waivers 848
and physical space waivers to the City, and the City may request the Contractor’s assistance in 849
reviewing such waivers. Upon the request of the City, Contractor shall within seven (7) days of 850
receipt of the City’s request, inspect the Generator’s Premises to verify the accuracy of the 851
application. Contractor shall provide documentation of the inspection, including the date of the 852
inspection, Customer name and address, a description of the Premises, evaluation of each criterion 853
of the relevant waiver type, and photographic evidence. The Contractor shall send this information 854
and documentation to the City in a timely manner, not to exceed three (3) days after the date of 855
inspection. The City ultimately retains the right to approve or deny any application, regardless of 856
the information provided by the Contractor. Contractor shall report information regarding waivers 857
reviewed within the month, if any, in accordance with Exhibit D and Section 4.8. 858
D. Service Level Updates. When the City grants a waiver to a Customer, or the Customer’s waiver 859
status changes after a re-verification determination, the City shall notify the Contractor within seven 860
(7) days of the waiver approval or status change with information on the Customer and any changes 861
to Service Level or Collection service requirements for the Customer. Contractor shall have seven 862
(7) days to modify the Customer’s Service Level, Customer account data, and billing statement, as 863
needed. 864
E. Waiver Re-verification. The City shall be responsible for re-verification of waivers. Upon request of 865
the City, the Contractor shall support the City in this re-verification process by providing requested 866
Customer information as per customer database requirements in Section 4.8 In the event that a 867
waiver status changes, Contractor shall update the Customer’s information and Service Level in 868
accordance with subsection 4.11.2.D above. 869
4.11.3 Contractor Service Exemptions 870
A. Disaster Waivers. In the event of a disaster, the City may grant Contractor a waiver of some or all 871
Discarded Materials Collection requirements under this Agreement and 14 CCR, Division 7, Chapter 872
12, Article 3 in the disaster-affected areas for the duration of the waiver, provided that such waiver 873
has been approved by CalRecycle. Any resulting changes in Collection requirements shall be 874
addressed as a change in scope in accordance with Section 3.5. 875
B. Removal of Material from Homeless Encampments and Illegal Disposal Sites. The Contractor may, 876
but is not required to, separate or recover Organic Waste that City removes from homeless 877
encampments and illegal disposal sites as part of an abatement activity to protect public health and 878
safety. Contractor shall report the amount of Discarded Materials removed for Disposal from 879
homeless encampments and illegal disposal sites, in accordance with Exhibit D. 880
June 9, 2020 Item #10 Page 109 of 286
C. Quarantined Waste. If approved by the City, the Contractor may Dispose of, rather than process, 881
specific types of Organic Materials and/or Recyclable Materials that are subject to quarantine and 882
meet the requirements described in 14 CCR Section 18984.13(d) for a period of time specified by 883
the City or until the City provides notice that the quarantine has been removed and directs 884
Contractor to Transport the materials to the Approved Facilities for such material. 885
In accordance with Exhibit D, the Contractor shall maintain records and submit reports regarding 886
compliance agreements for quarantined Organic Materials and Recyclable Materials that are 887
Disposed of pursuant to this subsection. 888
4.12 CONTAMINATION MONITORING 889
4.12.1 Annual Route Reviews 890
A. Methodology. The Contractor shall, at its sole expense, conduct Route reviews of Containers for 891
Prohibited Container Contaminants in a manner that meets the requirements of this Section; is 892
approved by the City; and results in all Routes being reviewed at least annually. 893
{Note to proposers: This section assumes a three- Container system. If using a four-Container 894
system, all four Container types (Recyclable Materials, Yard Trimmings, Food Waste, and Solid 895
Waste) would need to be inspected, and this Section of the Agreement would be modified 896
accordingly} 897
The Contractor’s Route review shall include all Container types in service (Recyclable Materials, 898
Organic Materials, and Solid Waste Containers) for all Customer Types. The Containers shall be 899
randomly selected prior to beginning the Route review through use of a random number 900
generator; and the minimum number of Containers to be sampled shall be based on weekly route 901
size, as follows: 902
1 For weekly Routes with less than 1,500 Generators, the Contractor shall sample a 903
minimum of 25 Containers; 904
2. For weekly Routes with 1,500-3,999 Generators, the Contractor shall sample a 905
minimum of 30 Containers; 906
3. For weekly Routes with 4,000-6,999 Generators, the Contractor shall sample a 907
minimum of 35 Containers; and, 908
4. For weekly Routes with more than 7,000 Generators, the Contractor shall sample a 909
minimum of 40 Containers. 910
Contractor shall develop a specific Route review methodology to accomplish the above Container 911
inspection requirements and such methodology shall comply with the requirements of 14 CCR 912
Section 18984.5(b). Contractor shall submit its proposed Route review methodology for the 913
coming year to the City no later than January 15 of each year describing its proposed methodology 914
for the calendar year and schedule for performance of each Route’s annual review. Contractor’s 915
proposed Route review methodology shall include not only its plan for Container inspections, but 916
shall also include its plan for prioritizing the inspection of Customers that are more likely to be 917
out of compliance. The City and/or CalRecycle will review and approve the proposed 918
June 9, 2020 Item #10 Page 110 of 286
methodology. Contractor may commence with the proposed methodology upon approval. 919
If the City and/or CalRecycle notifies the Contractor that the methodology is inadequate to meet 920
the requirements of 14 CCR Section 18984.5(b), Contractor shall, at its sole expense, revise the 921
methodology and, after obtaining City or CalRecycle approval, conduct additional Route reviews, 922
increased Container inspections, or implement other changes using the revised procedure. If the 923
Contractor’s proposed methodology meets the requirements of 14 CCR Section 18984.5(b), but 924
has been deemed inadequate by the City, the Contractor shall, at the expense of the City, revise 925
the methodology and implement the necessary changes using the revised procedure. 926
The City’s Contract Manager may request, and Contractor shall accept, modifications to the 927
schedule to permit observation of the Route reviews by the City. In addition, Contractor shall 928
provide an email notice to the City’s Contract Manager no less than ten (10) Working Days prior 929
to each scheduled Route review that includes the specific time(s), which shall be within the City’s 930
normal business hours, and location(s). 931
B. Contamination Notification. Upon identification of Prohibited Container Contaminants in a 932
Customer’s Container, Contractor shall provide the Customer with a notice of contamination in 933
the form of either a courtesy pick-up notice or a non-collection notice as determined by the route 934
auditor. 935
C. Courtesy Pick-Up Notice. Upon identification of Prohibited Container Contaminants in a 936
Customer’s Container, Contractor shall provide the Customer a courtesy pick-up notice at the 937
Customers door or gate; or, subject to City’s approval, may deliver the notice by mail, e-mail, or 938
text message. Contractor shall also attach or adhere Courtesy Pick-Up Notice to Generators 939
contaminated containers. 940
The courtesy pick-up notification shall, at a minimum: 941
1. inform the Customer of the observed presence of Prohibited Container Contaminants; 942
2. include the date and time the Prohibited Container Contaminants were observed; 943
3. include information on the Customer’s requirement to properly separate materials 944
into the appropriate Containers, and the accepted and prohibited materials for 945
Collection in each Container; 946
4. inform the Customer of the courtesy pick-up of the contaminated materials on this 947
occasion with information that the Contractor may assess contamination Processing 948
fees and/or issue a non-Collection notice in the future; and, 949
5. include photographic evidence. 950
The format of the courtesy pick-up notice shall be approved by the City Contract Manager and 951
must be a distinct color from the non-collection notices. 952
Contractor shall Collect the contaminated Recyclable Materials and/or Organic Materials 953
Containers and either Transport the material to the appropriate Approved Facility for Processing; 954
or, Contractor may Collect the contaminated materials with the Solid Waste and Transport the 955
June 9, 2020 Item #10 Page 111 of 286
contaminated materials to the Approved Disposal Facility. A Courtesy Collection of contaminated 956
Recyclable Materials or Organic Materials where the materials are sent to the Approved Disposal 957
Facility may be made with a Solid Waste Collection vehicle, provided that the contaminants may 958
safely and lawfully be Collected as Solid Waste. 959
D. Non-Collection Notices 960
1. Non-Collection Notice. Upon identification of Prohibited Container Contaminants in a 961
Container in excess of standards agreed upon by the Parties or Excluded Waste, Contractor 962
shall provide a non-Collection notice to the Generator. 963
The non-Collection notice shall, at a minimum: 964
a. inform the Customer of the reason(s) for non-Collection; 965
b. include the date and time the notice was left or issued; 966
c. describe the premium charge to Customer for Contractor to return and 967
Collect the Container after Customer removes the Contamination; and, 968
d. provide a warning statement that a contamination Processing fee may be 969
assessed. 970
e. include photographic evidence of the violation(s). 971
2. Communications with Customer. Whenever a Container at the Premises of a Commercial or 972
a Multi-Family Customer is not Collected, Contractor shall contact the Customer on the 973
scheduled Collection day or within ___(__) hours of the scheduled Collection day by 974
telephone, email, text message, or other verbal or electronic message to explain why the 975
Container was not Collected. Whenever a Container is not Collected because of Prohibited 976
Container Contaminants, a Customer service representative shall contact the Customer to 977
discuss, and encourage the Customer to adopt proper Discarded Materials preparation and 978
separation procedures. 979
3. Contractor Return for Collection. Upon request from Customer, Contractor shall Collect 980
Containers that received non-Collection notices within one (1) Working Day of Customer’s 981
request if the request is made at least two (2) Working Days prior to the regularly scheduled 982
Collection Day. Contractor shall bill Customer for the extra Collection service event (“extra 983
pick-up”) at the applicable City-approved Rates only if Contractor notifies Customer of the 984
premium Rate for this service at the time the request is made by Customer. 985
E. Assessment of Contamination Processing Fees. If the Contractor observes 20% or more 986
Prohibited Container Contaminants and has issued a Courtesy notice or Non-Collection notice, as 987
appropriate, the Contractor may impose a contamination Rate approved by the City for that 988
Customer’s Service Level. The intent of Contamination Fees is to provide a behavioral tool to 989
educate and prevent Customers from placing Source Separated Discarded Material into the 990
improper designated Container(s). To ensure that assessment of fees are to be used for the 991
intended purposes and not as a form of revenue generation, Contractor agrees that 992
Contamination fees shall not exceed 1% of Contractor’s Gross Receipts in any calendar quarter. 993
June 9, 2020 Item #10 Page 112 of 286
In the event that Contamination fees exceed 1% of Contractor’s Gross Receipts in any calendar 994
quarter, the assessment of Contamination fees shall be suspended immediately and indefinitely 995
pending a program assessment by the City and Contractor. Upon program suspension or at the 996
request of the City at any time during the term of the Agreement, City and Contractor shall meet 997
and confer regarding the application and effectiveness of Contamination fees in accomplishing 998
the behavior change. If the program is suspended due to excessive revenue generation, the City 999
may require contractor to either: i) modify the program parameters; ii) modify the amount of the 1000
Contamination fee; or, iii) return to the City any funds generated by the Contamination fee which 1001
exceed 1% of Contractor’s Gross Receipts for a given period of time. 1002
Failure to comply with the requirements of this section shall equate to Liquated Damages in 1003
accordance in Exhibit F. 1004
Contractor shall leave a contamination Processing fee notice attached to the Generators’ 1005
contaminated Container(s). Contractor must also deliver notice by mail to the bill-payer’s address 1006
within twenty-four (24) hours of assessing the contamination fee. 1007
1. Contamination Processing Fee Notice. Contamination Processing fee notices shall be in a 1008
format approved by the City Contract Manager. Contractor shall notify the City in its 1009
monthly report of Customers for which contamination Processing fees were assessed per 1010
Section 4.12.1(F). 1011
Each Contamination Processing Fee Notice shall, at a minimum: 1012
i. describe the specific material(s) of issue; 1013
ii. explain how to correct future set outs; and, 1014
iii. indicate that the Customer will be charged a contamination 1015
Processing fee on their next bill. 1016
F. Reporting Requirements. 1017
1. Container Contaminant Log: The driver or other Contractor representative shall record 1018
each event of identification of Prohibited Container Contaminants in a written log or in the 1019
on-board computer system including, but not limited to: date, time, Customer’s address, 1020
type of Container, and maintain photographic evidence. 1021
2. Contaminant Fees Assessment Report: Additionally, on no less than a weekly basis, 1022
Contractors Contract Administrator shall update the Customer’s account records to note 1023
the contaminant event(s) as identified driver(s). Contractor shall maintain records and 1024
report to the City monthly on contamination monitoring activities and actions taken, 1025
consistent with the submittal timing and content requirements of Exhibit D. Failure to meet 1026
the requirements of this Section 4.12.1(F)(2), shall equate to Liquidated Damages as 1027
identified in Exhibit F. 1028
3. Monthly Report: The monthly report shall include, but is not limited to: list of Customers 1029
that were assessed charges; photographic evidence of each contamination event(s) where 1030
a fee(s) was assessed; verification processes to assure accurate fee assessment; date of 1031
June 9, 2020 Item #10 Page 113 of 286
notification, form(s) of notification given to Customer; list of efforts made in educating the 1032
customer that was assessed a fee; list of customer complaints in response to fee 1033
assessment; Contractor’s response and actions taken in response to Customer Complaints; 1034
and, the dollar amount of Contamination Fees assessed during the reporting period. Failure 1035
to meet the requirements of this Section 4.12.1(F)(3), shall equate to Liquidated Damages 1036
as identified in Exhibit F. 1037
4.12.2 Waste Characterization Studies 1038
A. Recyclable Materials. Contractor shall, at its sole expense, design and perform a Residue 1039
characterization of the Recyclable Materials Processed at the Approved Recyclable Materials 1040
Processing Facility a minimum of one (1) time per calendar per year. Contractor shall propose a 1041
study methodology that must include separately Processing at least thirty (30) Tons of Recyclable 1042
Materials, stratified across no fewer than three distinct days of service, from the City at the 1043
Approved Recyclable Materials Processing Facility under normal operating conditions for the 1044
facility (i.e. staffing levels, belt speed, burden depth, etc.). The methodology must be approved 1045
by the City Contract Manager in writing prior to Contractor conducting such a study. The results 1046
of that study shall be used to determine the allowable level of Residue Disposal Costs for the 1047
upcoming Rate Period. 1048
B. Organic Materials. Contractor shall, at its sole expense, design and perform waste 1049
characterization studies for Prohibited Container Contaminants for Organic Materials Collected in 1050
the City. The Contractor shall conduct waste composition studies at least two (2) times per year 1051
and the studies shall occur in two (2) distinct seasons of the year. The Contractor shall submit a 1052
proposed methodology to the City for review and approval, and the methodology must include 1053
the requirements presented below. 1054
The study shall include samples of Organic Materials and Solid Waste taken from Containers 1055
located in different areas of the City that are representative of the City’s waste stream. The 1056
minimum number of Containers to be sampled shall be based on weekly route size, as follows: 1057
1. For weekly Routes with less than 1,500 Generators, the Contractor shall sample a minimum 1058
of 25 Containers; 1059
2. For weekly Routes with 1,500-3,999 Generators, the Contractor shall sample a minimum of 1060
30 Containers; 1061
3. For weekly Routes with 4,000-6,999 Generators, the Contractor shall sample a minimum of 1062
35 Containers; and, 1063
4. For weekly Routes with more than 7,000 Generators, the Contractor shall sample a 1064
minimum of 40 Containers. 1065
The Contractor shall Transport all of the material Collected for sampling to a sorting area at an 1066
Approved Facility, where the presence of Prohibited Container Contaminants for each Container 1067
type shall be measured to determine the ratio of Prohibited Container Contaminants present in 1068
each material stream by weight. To determine the ratio of Prohibited Container Contaminants, 1069
the Contractor shall use the following protocol 1070
June 9, 2020 Item #10 Page 114 of 286
1. The Contractor shall take one sample of at least a 200 pounds from the material Collected 1071
from each material stream for sampling. For example, Contractor shall take a 200-pound 1072
sample taken from the combined contents of the Organic Materials Container samples. 1073
2. The 200-pound sample shall be randomly selected from different areas of the pile of 1074
Collected material for that material stream. 1075
3. For each 200-pound sample, the Contractor shall remove any Prohibited Container 1076
Contaminants and determine the weight of Prohibited Container Contaminants. 1077
4. The Contractor shall determine the ratio of Prohibited Container Contaminants in the 1078
sample by dividing the total weight of Prohibited Container Contaminants by the total 1079
weight of the sample. 1080
5. All weights shall be recorded in pounds. 1081
C. Scheduling and Observation of Studies. Contractor shall, no later than January 15 of each 1082
calendar year, provide the City with a proposed methodology for each type of study and a 1083
schedule of studies for the calendar year for review and approval by the City. The City shall be 1084
notified at least thirty (30) days in advance of each study and the City, or the City’s designated 1085
third party, maintains the right to observe all aspects of the study. The studies shall be scheduled 1086
within the City’s normal business hours, and the City Contract Manager may request, and 1087
Contractor shall accept, modifications to the schedule to permit observation by the City. 1088
D. Recordkeeping and Reporting. Contractor shall maintain records of each study conducted and 1089
report results directly to the City within fourteen (14) days of completing the study as well as 1090
include the results in the Contractors annual report, in accordance with Exhibit D. 4.13 Edible 1091
Food Recovery Program 1092
E. General. Pursuant to the requirements of SB 1383, 14 CCR, Division 7, Chapter 12, Article 10, the 1093
City is responsible for developing and implementing a Food Recovery program in the City. The 1094
Contractor shall cooperate with and shall not impede, interfere, or attempt to impede or interfere 1095
with the implementation, expansion, or operation of Food Recovery program efforts in the City. 1096
F. Identification of Commercial Edible Food Generators. Contractor shall assist the City with 1097
identifying Tier One and Tier Two Commercial Edible Food Generators for the purpose of the Food 1098
Recovery program. No later than six (6) months after the effective date of the Agreement, and 1099
annually thereafter, the Contractor shall identify and provide a list to the City of Commercial 1100
Customers that qualify, or appear to qualify, as Tier One or Tier Two Commercial Edible Food 1101
Generators, as defined by this Agreement. The list shall include, at a minimum: the Customer 1102
name; service address; contact information; Tier One or Tier Two classification; and, type of 1103
business as it relates to the categories of entities specified under the definitions of Tier One and 1104
Tier Two Commercial Edible Food Generators. The Contractor shall update this information 1105
annually; maintain an up-to-date database; and include this information in the Contractor’s 1106
annual report, in accordance with Exhibit D. 1107
June 9, 2020 Item #10 Page 115 of 286
ARTICLE 5. 1108
STANDARD OF PERFORMANCE 1109
5.1 GENERAL 1110
Contractor shall at all times comply with Applicable Law and provide services in a manner that is safe to 1111
the public and the Contractor’s employees. Except to the extent that a higher performance standard is 1112
specified in this Agreement, Contractor shall perform services in accordance with Recyclable Materials, 1113
Organic Materials, and Solid Waste management practices common to the San Diego Area. 1114
5.2 OPERATING HOURS AND SCHEDULES 1115
A. Hours of Collection. Unless otherwise authorized by the City Contract Manager, Contractor’s days 1116
and hours for Collection operations shall be as follows: 1117
1. Residential Premises. Collection from Residential Premises shall only occur between the 1118
hours of 6:00 a.m. and 7:00 p.m., Monday through Friday. 1119
2. Commercial Premises. Collection from Commercial Premises that are two hundred (200) 1120
feet or less from Residential Premises shall only occur between the hours of 6:00 a.m. and 1121
7:00 p.m., Monday through Saturday. Collection from Commercial Premises more than 1122
two hundred (200) feet from Residential Premises shall only occur between the hours of 1123
5:00 a.m. and 8:00 p.m., Monday through Saturday. 1124
3. City Facilities. The Collection schedule for City facilities shall be the same as Commercial 1125
Premises specified in subsection 5.2.A.2 above. 1126
B. Changes in Collection Routes. Prior to Commencement of this Agreement, Contractor shall 1127
provide the City with Route Maps identifying at a minimum: the type of route (e.g. Single-Family, 1128
Multi-Family, Commercial, etc.) and the service day. City shall either approve or deny proposed 1129
Standard Collection Routes. If City denies any Standard Collection Routes, Contractor may request 1130
a meet and confer with the City Contract Manager to discuss potential options. The City Contract 1131
Managers decision shall be final with respect to any routing changes that may impact the day of 1132
service of any Customer. Contractor may, at any time during the term of this Agreement, propose 1133
changes or additional routes, subject to City approval. If a Standard Collection Route change is 1134
approved, Contractor must notify all affected customers fourteen (14) days prior to Contractor 1135
implementing the new route. Failure to obtain City approval on route changes resulting in service 1136
day changes for Customers shall be subject to Liquidated damages as identified in Exhibit F. 1137
C. Holiday Collection. Contractor, at its sole discretion, may choose not to provide Collection 1138
services on a Holiday. In such event, Contractor shall provide Single-Family Collection services on 1139
the day following the Holiday thereby adjusting subsequent work that week with normally 1140
scheduled Friday Collection Services being performed on Saturday; however, Customer service 1141
days shall be returned to the normal schedule within one (1) week of the Holiday. Multi-Family, 1142
Commercial, and City Collection Services shall be adjusted as agreed between the Contractor and 1143
the Customer but must meet the minimum frequency requirement of one (1) time per week. The 1144
Contractor shall provide Customers notice of Holiday-related changes in Collection schedules at 1145
least two (2) weeks prior to the change. 1146
June 9, 2020 Item #10 Page 116 of 286
5.3 COLLECTION STANDARDS 1147
A. Servicing Containers. Contractor shall Collect and return each Container to the location where 1148
the Occupant placed the Container for Collection. Contractor shall place the Containers upright 1149
with lids properly secured. For Customers other than Single-Family Residential Customers, 1150
Contractor shall, without additional charge to the Customer, pull or push Containers up to twenty-1151
five (25) feet from the location where the Occupant placed the Container for Collection to the 1152
Collection vehicle for service. 1153
Contractor, at the request of Customers, may provide special services including: (i) unlocking 1154
Containers; (ii) accessing Container enclosures with a key; or, (iii) pulling or pushing Containers 1155
distances greater than twenty-five (25) feet. Contractor may charge Customers for such extra 1156
services at the Rates approved by City for such services. 1157
Contractor shall establish a hard-to-service route for each material type, using smaller Collection 1158
vehicles for the purposes of servicing Single-Family Customers in areas of the City that are difficult 1159
to access, do not have space to make turn-arounds, or where Contractor is otherwise unable to 1160
provide service meeting the highest safety standards. The City Contract Manager may, within 1161
reason and based on the specific circumstances of the Customer, require the Contractor to 1162
provide service to specific Single-Family Customers on this hard-to-service route, and Contractor 1163
shall ensure that it maintains a sufficient number of smaller Collection vehicles to accommodate 1164
such requests. 1165
Contractor may require Customers on private roads to sign road damage liability waivers prior to 1166
operating on such private streets. If Customers on private roads fail to sign such waivers, 1167
Contractor may, upon approval, which may or may not be conditional, from the City Contract 1168
Manager require them to receive service at the nearest public right of way. 1169
B. Non-Collection, Courtesy Noticing. Prior to the Commencement Date, Contractor shall develop, 1170
and submit to the City Contract Manager for review and approval, and as per the requirements of 1171
Section 4.12.1(D) 1172
1. A template Non-Collection Notice, for use in instances of acceptable non-Collection of 1173
Discarded Materials; and, 1174
2. A template Courtesy Notice, for use in instances of improper set-out of Discarded Materials, 1175
which the Contractor, at its sole option, elects to Collect as a courtesy to the Customer. 1176
Per the requirements identified in Section 4.12.1, in the event that Contractor encounters 1177
circumstances at a Customer Premises which prevents the Contractor from Collecting Discarded 1178
Materials which have been placed for Collection, Contractor shall leave a Non-Collection Notice 1179
at the Customer Premises clearly explaining Contractor’s reason for refusal to Collect the 1180
Discarded Materials. Contractor shall not be required to Collect Discarded Materials which are 1181
reasonably believed to contain Excluded Waste, pursuant to the requirements of Section 5.8. If 1182
Contractor intentionally refuses to Collect Discarded Materials (including Cardboard overages), 1183
but does not leave a Non-Collection notice, it shall be considered a Missed Collection per Section 1184
4.9.3., and provisions of Section 5.13 shall apply. Contractor may propose an alternative to a paper 1185
Non-Collection Notice left at Customer Premises (e.g. Customer notification via a phone call or e-1186
mail) subject to City approval. Such an alternative must involve pro-active communication with 1187
June 9, 2020 Item #10 Page 117 of 286
Customer, initiated by Contractor. {Note to Proposers: This section may be revised in the event 1188
that an alternative method of addressing non-Collection is approved by the City. Proposers should 1189
note that no alternatives will be accepted unless they involve direct, pro-active communication 1190
with the Customer.}. 1191
In the event that Contractor encounters circumstances at a Customer Premises which allow for 1192
safe Collection of Discarded Materials, but do not otherwise reflect proper set-out procedures 1193
(including, but not limited to spills not caused by the Contractor, Carts placed too close together, 1194
Carts placed in front of one another, and/or Carts placed too close to parked cars), Contractor 1195
shall Collect the material and leave a Courtesy Notice at the Customer Premises clearly explaining 1196
how the Customer failed to comply with proper set-out procedures. 1197
Contractor may educate the public on proper set-out procedures designed to maximize the 1198
efficiency of Collection (e.g. Carts spaced three (3) feet apart). However, Contractor acknowledges 1199
that such procedures are not practical in all circumstances and failure of the Customer to follow 1200
such procedures does not constitute a reason for non-Collection if the Discarded Materials may 1201
be safely and reasonably serviced. Contractor’s route drivers shall dismount their Collection 1202
vehicles and reposition Containers as necessary to provide Collection service. Contractor may not 1203
require a Customer to set out the Customer’s Containers in such a manner that would block 1204
vehicle access to Customer’s driveway. Contractor and Customers may mutually agree to 1205
uncommon service locations if necessary for Collection in specific areas (e.g. setting out all of the 1206
Carts in a court in a line down the middle of the court as opposed to Curbside.) 1207
Contractor may refuse to Collect Recyclable Materials or Organic Materials Containers which are 1208
contaminated in accordance with Exhibit B and Section 4.12., and shall leave an approved Non-1209
Collection notice informing Customer how to properly separate materials. 1210
C. Litter Abatement. Contractor shall use due care to prevent spills or leaks of material placed for 1211
Collection, fuel, and other vehicle fluids while providing services under this Agreement. If any 1212
materials are spilled or leaked during Collection and Transportation, the Contractor shall clean up 1213
all spills or leaks before leaving the site of the spill. 1214
Contractor shall not transfer loads from one vehicle to another on any public street, unless it is 1215
necessary to do so because of mechanical failure, combustion of material in the truck, or 1216
accidental damage to a vehicle. 1217
Contractor shall cover all open Drop Boxes at the pickup location before Transporting materials 1218
to the Approved Facility. 1219
Contractor shall conduct public outreach and staff training to Customers on best management 1220
practices for litter abatement at no extra charge. Such best management practices include, 1221
without limitation: 1222
1. Closing Container lids and right sizing service: Contractor staff will tag overfull containers 1223
with Courtesy Notices, which will serve as outreach and education to the Customer. Photos 1224
of the container will be taken by drivers, attached to the Customer’s account, and will be 1225
available to outreach and Customer service staff in order to demonstrate to the Customer 1226
where a problem exists. 1227
June 9, 2020 Item #10 Page 118 of 286
2. Outreach to Customer on importance of bagging lightweight materials such as plastic bags, 1228
film plastics, foam peanuts, and other materials that can easily become litter due to their 1229
lightweight nature. 1230
3. Driver training on litter reduction techniques and litter removal best management 1231
practices. 1232
4. Affixing signage to the back of Contractor trucks which provides a phone number for 1233
residents to report material spills. 1234
D. Development and Review of Collection Specifications. Contractor shall work with the City to 1235
develop standard specifications for Collection Container enclosures at Commercial and Multi-1236
Family Premises. These specifications shall be developed to ensure that the Collection Container 1237
enclosures are built to provide adequate space for and suitable configuration to allow the 1238
Contractor to safely and efficiently service Recyclable Materials, Organic Materials, and Solid 1239
Waste Containers. Contractor’s Operations Manager or other appropriately qualified staff shall, 1240
upon request by the City Contract Manager, provide a review of plans for new Multi-family and 1241
Commercial development or project design drawings. Contractor shall provide comments and 1242
recommendations resulting from the review in writing within ten (10) Working Days of receipt of 1243
the documents for review. In each review report, Contractor shall comment on the acceptability 1244
of the proposed enclosure arrangements in terms of: i) the adequacy of space for Recyclable 1245
Materials, Organic Materials, and Solid Waste Containers; ii) the accessibility of the Containers for 1246
Collection including whether additional charges (e.g., push/pull, etc.) would apply; and iii) ease of 1247
use by tenants. 1248
E. No Commingling of Materials. Contractor shall Collect materials generated in the City in 1249
Collection Vehicles separately from other materials generated outside the City service area, unless 1250
otherwise approved by the City Contract Manager. Contractor shall not commingle materials 1251
which have been Source Separated with other materials types (for example, Source Separated 1252
Recyclable Materials which have been properly placed for Collection shall not be combined with 1253
Solid Waste or Source Separated Organic Materials). 1254
5.4 TRANSFER AND PROCESSING STANDARDS 1255
5.4.1 Equipment and Supplies 1256
Contractor shall equip and operate the Approved Processing Facilities in a manner to fulfill Contractor’s 1257
obligations under this Agreement. Contractor is solely responsible for the adequacy, safety, and suitability 1258
of the Approved Processing Facilities. Contractor shall modify, enhance, and/or improve the Approved 1259
Processing Facilities as needed to fulfill Services under this Agreement. 1260
Contractor shall provide all rolling stock, stationary equipment, material storage containers, spare parts, 1261
maintenance supplies, Transfer, Transport, and Processing equipment, and other consumables as 1262
appropriate and necessary to operate the Approved Processing Facilities and provide all services required 1263
by this Agreement. Contractor shall place the equipment in the charge of competent operators. 1264
Contractor shall repair and maintain all equipment at its own cost and expense. 1265
5.4.2 Scales and Weighing 1266
Contractor is solely responsible for ensuring accurate weighing of all materials entering and leaving the 1267
June 9, 2020 Item #10 Page 119 of 286
Approved Processing Facilities. 1268
A. Facility Scales. Contractor shall maintain State-certified motor vehicle scales in accordance with 1269
Applicable Law. All scales shall be linked to a centralized computer recording system at the 1270
Approved Processing Facilities to record weights for all incoming and outgoing materials. Contractor 1271
shall provide back-up generator(s) capable of supplying power to the scales in the event of a power 1272
outage. Contractor shall promptly arrange for use of substitute portable scales should its usual 1273
scales not be available for whatever reason. Pending substitution of portable scales, Contractor shall 1274
as necessary estimate the Tonnages of materials delivered to and Transported from the Approved 1275
Processing Facilities, on the basis of delivery vehicle and Transfer trailer volumes, tare weights, 1276
and/or other available facility weight records. These estimates shall take the place of actual weights 1277
while scales are inoperable, and shall be identified as estimates in electronic records and reporting. 1278
C. Tare Weights. No less than thirty (30) calendar days prior to the Commencement Date, Contractor 1279
shall ensure that all vehicles used by Contractor to deliver Recyclable Materials, Organic Materials, 1280
and Solid Waste to the Approved Processing Facilities are weighed to determine unloaded (“tare”) 1281
weights. Contractor shall electronically record the tare weight, identify vehicle as Contractor owned, 1282
and provide a distinct vehicle identification number for each vehicle. Contractor shall provide City 1283
with a report listing the vehicle tare weight information upon request. Contractor shall promptly 1284
weigh additional or replacement vehicles prior to placing them into service. Contractor shall check 1285
tare weights at least annually, or within fourteen (14) calendar days of a City request, and shall re-1286
tare vehicles immediately after any major maintenance or service event. 1287
D. Testing. Contractor shall test and calibrate all scales in accordance with Applicable Law, but at least 1288
one (1) test and recalibration per scale every twelve (12) months or upon City request. 1289
E. Records. Contractor shall maintain computerized scale records and reports that provide 1290
information including date of receipt, inbound time, inbound and outbound weights of vehicles, and 1291
vehicle identification number. Contractor shall also maintain computerized scale records and 1292
reports providing historical vehicle tare weights for each vehicle and the date and location for each 1293
tare weight recorded. 1294
F. Upon-Request Reporting. If vehicle receiving and unloading operations are recorded on video 1295
cameras at the Approved Processing Facilities, Contractor shall make those videos available for City 1296
review during the Approved Processing Facility’s operating hours, upon request of the City, and shall 1297
provide the name of the driver of any particular load if available. 1298
5.5 COLLECTION VEHICLE REQUIREMENTS 1299
A. Vehicle Requirements. Contractor shall provide a fleet of Collection vehicles sufficient in number 1300
and capacity to efficiently perform the work required by the Agreement in strict accordance with 1301
its terms. Contractor shall have available sufficient back-up vehicles for each type of Collection 1302
vehicle used to respond to scheduled and unscheduled maintenance, service requests, Complaints, 1303
and emergencies. 1304
1. All such vehicles shall have watertight bodies designed to prevent leakage, spillage, or 1305
overflow. All such vehicles shall meet On-Road Heavy Duty Vehicle emissions requirements 1306
for model year 2020, regardless of the actual model year of Contractor’s vehicles, and 1307
generally comply with all Federal, State, and local laws and regulations. Contractor’s vehicles 1308
June 9, 2020 Item #10 Page 120 of 286
shall utilize Recycled motor oil to the extent practicable. 1309
2. All Collection vehicles used by Contractor under this Agreement shall be powered by 1310
Renewable Natural Gas (RNG) generated by the {insert name of publicly-owned treatment 1311
works in-vessel digestion facility} or powered by RNG that is purchased through a wheeling 1312
agreement with a party(ies), provided that the wheeling agreement is for purchase of gas 1313
derived from Organic Waste that has been diverted from a Landfill and Processed at an in-1314
vessel digestion Facility that is permitted or otherwise authorized by 14 CCR to Recycle 1315
Organic Waste and meets SB 1383 requirements. Contractor shall comply with this 1316
requirement no later than insert date. Upon City’s request, Contractor shall obtain and 1317
provide the City with a written certification by an authorized representative of the publicly-1318
owned treatment works or the wheeling agreement service provider certifying that the in-1319
vessel digestion Facility produces the RNG consistent with the requirements of 14 CCR Section 1320
18993.1(h). Contractor shall maintain records of the amount of RNG purchased and shall 1321
report this information in accordance with Exhibit D. Contractor shall agree to the City the 1322
right to report this RNG usage toward the City’s fulfilment of its annual recovered Organic 1323
Waste product procurement target in accordance with 14 CCR Section 18993.1. 1324
3. Collection vehicles shall have the capability of carrying and safely transporting empty and full 1325
Used Oil Recovery Kits, as well as the capacity to Collect and transport loose Cardboard 1326
overages, to ensure that Contractor is capable of complying with Exhibit B. 1327
4. Collection vehicles shall present a clean appearance while providing service under this 1328
Agreement. 1329
B. Vehicle Display. Contractor’s name and local telephone number shall be displayed on all vehicles in 1330
at least four (4) inch characters. Vehicles shall be equipped with sign board holders or other 1331
hardware to allow public education signage of no less than thirty-six (36) by forty-eight (48) inches 1332
to be displayed on both sides of the vehicle. 1333
C. Vehicle Inspection. Contractor shall inspect each vehicle daily to ensure that all equipment is 1334
operating properly. Vehicles that are not operating properly shall be taken out of service until they 1335
are repaired and operate properly. Contractor shall repair, or arrange for the repair of all its vehicles 1336
and equipment for which repairs are needed because of accident, breakdown or any other cause so 1337
as to maintain all equipment in a safe and operable condition. City Contract Manager may inspect 1338
vehicles at any reasonable time, and within three (3) calendar days of such a request, to determine 1339
compliance with sanitation requirements. 1340
D. Vehicle Operations. All Collection operations shall be conducted as quietly as possible and shall 1341
conform to applicable Federal, State, County, and City noise level regulations, including the 1342
requirement that the noise level during the stationary compaction process not exceed sixty (60) 1343
decibels with the exception of sixty-five (65) decibels for one-minute duration. All decibel readings 1344
shall be based on a distance of ten (10) feet from any part of the Vehicle. The City may request 1345
Contractor to check any piece of equipment for conformance with the noise limits in response to 1346
Complaints and/or when the City Contract Manager believes it is reasonable to do so. 1347
June 9, 2020 Item #10 Page 121 of 286
5.6 CONTAINER REQUIREMENTS 1348
A. Containers Provided to Customers. On or before the Commencement Date, Contractor shall 1349
provide Customers (including Single-Family, Multi-Family, Commercial, and City facility Customers) 1350
with new Collection Containers as requested by the Customer to meet its desired Service Level. 1351
Contractor shall provide Containers to new Customers requesting service initiation, or existing 1352
Customers requesting a Used Oil Recovery Kit within three (3) Working Days of Contractor’s first 1353
receipt of the Customer request. Contractor-provided Containers shall be new, and shall comply 1354
with the Container standards set forth in the Section. All Containers shall display the City’s name, 1355
logo, telephone number described in Section 4.9.1, website, capacity (yards or gallons) and some 1356
identifying inventory or serial number. Contractor shall cooperate with the previous City collection 1357
contractor to ensure that all existing Containers are replaced with Contractor-provided Containers 1358
within thirty (30) calendar days following the Commencement Date. 1359
B. Container Standards 1360
1. All Carts shall be manufactured by injection or rotational molding methods. The Cart handles 1361
and handle mounts may be an integrally molded part of the Cart body or molded as part of 1362
the lid. The Cart handles shall provide comfortable gripping area for pulling or pushing the 1363
Cart or lifting the lid. Pinch points are unacceptable Carts provided to Customer shall have a 1364
useful life of ten (10) or more years or more as evidenced by a manufacturer’s warranty or 1365
other documentation acceptable to the City. 1366
2. Carts shall remain durable, and at a minimum, shall meet the following durability 1367
requirements to satisfy its intended use and performance, for the Term of this Agreement: 1368
maintain its original shape and appearance; be resistant to kicks and blows; require no routine 1369
maintenance and essentially be maintenance free; not warp, crack, rust, discolor, or 1370
otherwise deteriorate over time in a manner that shall interfere with its intended use; resist 1371
degradation from ultraviolet radiation; be incapable of penetration by biting or clawing of 1372
household pets (i.e., dogs and cats); the bottoms of Cart bodies must remain impervious to 1373
any damage, that would interfere with the Cart’s intended use after repeated contact with 1374
gravel, concrete, asphalt, or any other rough and abrasive surface; all wheel and axle 1375
assemblies are to provide continuous maneuverability and mobility as originally designed and 1376
intended. 1377
3. Carts shall be resistant to common household or Residential products and chemicals; human 1378
and animal urine and feces; and, airborne gases or particulate matter currently present in the 1379
ambient air of the Service Area. 1380
4. All Containers with a capacity of one (1) cubic yard or more shall meet applicable federal 1381
regulations for Bin safety and be covered with attached lids. 1382
5. Contractor shall obtain the City’s written approval of Container material, design, colors, 1383
labeling, and other specifications before acquisition, painting, labeling, or distribution occurs. 1384
6. When purchasing plastic Collection Containers, Contractor shall purchase Containers that 1385
contain a minimum of 30% post-consumer recycled plastic content, unless such requirement 1386
is waived by the City Contract Manager. 1387
June 9, 2020 Item #10 Page 122 of 286
7. Container lids shall be designed such that the follow requirements are met: 1388
a. Prevents the intrusion of rainwater and vectors; 1389
b. Prevents the emissions on odors 1390
c. Enables the free and complete flow of material from the Container during the dump 1391
cycle without interference with the material already deposited in the truck body or the 1392
truck body itself and its lifting mechanism; 1393
d. Permits users of the Cart to conveniently and easily open and shut the lid throughout 1394
the serviceable life of the Cart; 1395
e. Hinged to the Cart body in such a manner to enable the lid to be fully opened, free of 1396
tension, to a position whereby it may rest against the backside of the Cart body. 1397
f. Prevents damage to the Container body, the lid itself, or any component parts through 1398
repeated opening and closing of the lid by Generators or in the dumping process as 1399
intended; 1400
g. Remains closed in winds up to twenty-five (25) miles per hour from any direction. All lid 1401
hinges must remain fully functional and continually hold the lid in the original designed 1402
and intended positions when either opened or closed or any position between the two 1403
extremes; and, 1404
h. Designed and constructed such that it prevents physical injury to the user while opening 1405
and closing the Cart. 1406
8. Containers shall be stable and self-balancing in the upright position, when either empty or 1407
loaded to its maximum design capacity with an evenly distributed load, and with the lid in 1408
either a closed or an open position. Containers shall be capable of maintaining upright 1409
position in sustained or gusting winds of up to twenty-five (25) miles per hour as applied from 1410
any direction. 1411
9. Containers shall be capable of being easily moved and maneuvered, if applicable, with an 1412
evenly distributed load equal in weight to its maximum design capacity on a level, sloped or 1413
stepped surface 1414
10. All such Containers shall be 100% recyclable at the end of their useful life. 1415
11. All containers shall be designed and constructed to be watertight and prevent the leakage of 1416
liquids. 1417
C. Container Colors. Contractor shall provide all Customers with Collection Containers that comply 1418
with the Container color requirements specified in this Section 5.6, or as otherwise specified in 1419
14 CCR Section 18982; 14 CCR, Division 7, Chapter 12, Article 3; or other Applicable Law. Colors 1420
shall be colorfast and resistant to fading as a result of weathering or ultraviolet degradation; and 1421
the lids and bodies shall be uniform for each Container type, as follows: 1422
June 9, 2020 Item #10 Page 123 of 286
For a three- Container system: 1423
1. Recyclable Materials Container bodies and lids shall be blue; 1424
2. Organic Materials Container bodies and lids shall be green; and 1425
3. Solid Waste Container bodies and lids shall be grey. 1426
For a four-Container system: 1427
1. Recyclable Materials Container bodies and lids shall be blue; 1428
2. Yard Trimmings Container bodies and lids shall be green; 1429
3. Food Waste Container bodies and lids shall be brown; and, 1430
4. Solid Waste Container bodies and lids shall be grey. 1431
Hardware such as hinges and wheels on the Containers may be a different color than specified 1432
above. All Containers shall comply with these color requirements, including Split-Bins. Each 1433
section of the Split-Bin shall be painted in accordance with the color requirements in this Section 1434
for the applicable Discarded Material type intended for that segregated section of the Bin (e.g., a 1435
Split-Bin for Solid Waste and Recyclable Materials would be half gray and half blue, respectively). 1436
D. Container Labeling. All markings on the Containers shall be approved by the City in advance of 1437
ordering such Containers. On the lid of each Cart, and the body of each Bin and Drop Box, 1438
Contractor shall label the ultimate destination of such materials as follows: “LANDFILL” for Solid 1439
Waste; “RECYCLE” for Recyclable Materials (including Cardboard, mixed paper, metal, etc.); and, 1440
“COMPOST” for Organic Materials (including Food Waste, Yard Trimmings, wood waste, etc.). On 1441
the body of each Cart, Bin, and Drop Box, Contractor shall label the Container capacity (in gallons 1442
for Carts, and cubic yards for Bins and Drop Boxes). Container body labeling shall be positioned 1443
on the side of each Container so it is visible to the Customer at all times 1444
Carts shall have positional marking in the form of an arrow (at least 3 inches by 5 inches) hot 1445
stamped in white color on the Cart lid, indicating the direction of Cart placement; and, in character 1446
size of no less than 3/16 inches, the phrase: “PLACE CART WITH ARROW FACING STREET FOR 1447
COLLECTION.” 1448
All Carts shall include a high-quality educational information label using in-mold technology, such 1449
that all labeling shall be integral to the lid, though the use of injection molding, and shall not be 1450
affixed to any part of the Cart or lid using adhesives. Notwithstanding the provisions of this 1451
Section, or the requirements of SB 1383, the in-mold lid label shall, at a minimum, include for each 1452
Container: primary materials accepted; primary materials prohibited; a clear indication of 1453
Prohibited Container Contaminants for that Container type, acceptable materials; prohibited 1454
materials; notification forbidding Hazardous Waste and describing proper Disposal thereof; 1455
notification forbidding scavenging (through words and international symbols) and describing the 1456
penalties therefore under California law or City Resolution; information about the Collection 1457
program; and, the City’s name and logo. Subject to City approval, Contractor shall display City’s 1458
name, website, and Contractor’s designated telephone number using labels, decals, or other 1459
June 9, 2020 Item #10 Page 124 of 286
approved method. Upon expiration or early termination of this Agreement, Contractor shall 1460
transfer access and rights of such phone number and website to the City. Contractor shall be 1461
prohibited from including Contractor’s name and/or logo on any Containers utilized in the City. 1462
E. Repair and Replacement of Containers; Inventory. Contractor shall be responsible for repairing 1463
or replacing Containers when Contractor determines the Container is no longer suitable for 1464
service; or when the City or Customer requests replacement of a Container that does not properly 1465
function, leaks, is damaged, or is otherwise not fit for service. Contractor shall be responsible for 1466
acquiring and providing the replacement Containers. Contractor shall repair or replace all 1467
damaged or broken Containers within three (3) Working Days of Customer or City request. Minor 1468
cracks, holes, and other damages to hinges, wheels, axle, hardware, and other component parts 1469
shall be readily repairable by the contractor personnel. All repairs must restore the Cart to its full 1470
functionality to meet the design and performance requirements as set for herein. 1471
Contractor shall maintain a sufficient inventory of Containers to accommodate new Customer 1472
requests for service, requests for change in Service Levels (size, type, or number of Containers) 1473
from current Subscribers, and requests for replacement due to damage. 1474
Contractor shall provide to Single-Family Customers at least one (1) free Cart replacement per any 1475
twelve (12) month period for any reason, upon Customer request. If Customer requests more 1476
than one (1) Cart replacement per any twelve (12) month period, Contractor shall make Carts 1477
available at the City-approved Rate for such services. In addition, Single-Family Customers may 1478
also request one Cart size exchange per Rate Period at no charge. All such Containers shall be 1479
provided within three (3) Working Days of request. Contractor’s failure to comply with the 1480
Container requirements may result in assessment of Liquidated Damages pursuant to Section 10.6 1481
and Exhibit F. 1482
F. Maintenance, Cleaning, Painting. All Containers shall be maintained in a safe, serviceable, and 1483
functional condition and present a clean appearance. Contractor shall repair or replace all 1484
Containers damaged by Collection operations in accordance with standards specified in Section 1485
5.6.D, unless damage is caused by Customer’s gross negligence, in which case, the Customer will 1486
be billed for repair or replacement of Container at a City-approved Rate for such service. All 1487
Containers shall be maintained in a functional condition. 1488
Contractor shall steam clean and/or repaint all Containers as needed (other than Carts) to present 1489
a clean appearance. Contractor shall offer steam cleaning service (or clean Container exchange) 1490
to Customers requesting such service and shall charge Customers for such cleaning (or Container 1491
exchange) at the City-approved Rate for such service. 1492
Contractor shall remove graffiti from Containers within forty-eight (48) hours of identification by 1493
Contractor or notice by City or Customer if such graffiti includes any written or pictorial 1494
obscenities and otherwise within a one (1) week period. 1495
Upon request from the City Contract Manager, Contractor shall provide the City with a list of 1496
Containers and the date each Container was painted and maintained. 1497
G. City Ownership of Containers at End of Term. Upon expiration or early termination of Agreement, 1498
all Containers purchased and put into service at Customer Premises during the Term of the 1499
Agreement shall become property of the City at no cost to the City if such Containers are fully 1500
June 9, 2020 Item #10 Page 125 of 286
depreciated. All Containers, and Compactors purchased and put into service at Customer 1501
Premises during the Term of the Agreement that have not been fully depreciated shall be available 1502
to the City, at the City’s option, at a cost reflecting the net book value. 1503
At its sole discretion, the City may elect not to exercise its rights with regards to this Section and, 1504
in such case, the Containers, and Compactors shall remain the property of the Contractor upon 1505
the date of this Agreement’s expiration or earlier termination. In such case, Contractor shall be 1506
responsible for outstanding depreciation and for removing all Containers, and Compactors in 1507
service from the Premises within fourteen (14) Working Days of the expiration date or early 1508
termination date of this Agreement or within a different timeframe mutually agreed to by the 1509
Parties. Contractor shall arrange for reuse or Recycling of Containers, and Compactors removed 1510
from the City. 1511
5.7 PERSONNEL 1512
A. General. Contractor shall furnish such qualified personnel as may be necessary to provide the 1513
services required by this Agreement in a safe and efficient manner. Contractor shall designate at 1514
least one (1) qualified employee as City’s primary point of contact with Contractor who is 1515
principally responsible for Collection operations and resolution of service requests and 1516
Complaints. Such individual shall be empowered to negotiate on behalf of and bind Contractor 1517
with respect to any changes in scope, dispute resolution, compensation adjustments, and service-1518
related matters which may arise during the term of this Agreement. Such individual is defined as 1519
Contractor’s {To be completed based on Contractors Proposal} 1520
Contractor shall use its best efforts to assure that all employees present a neat appearance and 1521
conduct themselves in a courteous manner. Contractor shall not permit its employees to accept, 1522
demand, or solicit, directly or indirectly, any additional compensation, or gratuity from Customers 1523
or members of the public. 1524
B. Hiring of Displaced Employees. Contractor is aware of and shall comply with the requirements of 1525
and duties imposed by Sections 1072 and 1075 of the California Labor Code regarding offers of 1526
employment to any displaced employees resulting from a change in service provider, if any, 1527
resulting from this Agreement or upon the expiration of this Agreement. 1528
The minimum staffing positions to be provided by Contractor to perform the services described 1529
herein to the City are identified in Exhibit H. Failure to consistently maintain these staffing levels, 1530
by position, during the term of the Agreement shall be considered a material breach. 1531
C. Driver Qualifications. All drivers must have in effect a valid license, of the appropriate class, issued 1532
by the California Department of Motor Vehicles. Contractor shall use the Class II California 1533
Department of Motor Vehicles employer “Pull Notice Program” to monitor its drivers for safety. 1534
D. Safety Training. Contractor shall provide suitable operational and safety training for all employees 1535
who operate Collection vehicles or equipment. Contractor shall train its employees involved in 1536
Collection to identify, and not to collect, Excluded Waste. Upon the City Contract Manager’s 1537
request, Contractor shall provide a copy of its safety policy and safety training program, the name 1538
of its safety officer, and the frequency of its trainings. 1539
E. Designated Staff. 1540
June 9, 2020 Item #10 Page 126 of 286
1. Field Supervisor. Contractor shall designate one (1) qualified full-time employee as 1541
supervisor of field operations. The designated field supervisor will devote at least fifty 1542
percent (50%) of his/her time in the City in the field checking on Collection operations, 1543
including responding to Customer requests, inquiries, and complaints. 1544
2. Diversion Coordinators. Contractor shall provide one (1) full-time Diversion Coordinators 1545
who are solely dedicated to the City and shall not perform any work related to other 1546
jurisdictions, proposals, or business functions of Contractor. Contractor shall hire the 1547
Diversion Coordinators in advance of the Commencement Date and the Diversion 1548
Coordinators shall assist in contacting all Multi-Family and Commercial Customers prior to 1549
the Commencement Date to determine service levels. The duties of the Diversion 1550
Coordinators will be focused on public education, community outreach, Commercial and 1551
Multi-Family site visits, and technical assistance, and will be substantially as proposed by 1552
Contractor in Exhibit G, Contractors Proposal and in Exhibit C Public Education and Outreach 1553
Requirements. Diversion Coordinators shall be full-time, regular, professional positions, 1554
compensated in accordance with the wages shown in Contractor’s Proposal for such 1555
positions. Contractor acknowledges that the Diversion Coordinator role is not intended to 1556
be an internship, or entry-level role. City shall have the option to participate in the hiring 1557
and training process of Contractor’s Diversion Coordinators. City may also employ 1558
corresponding staff member who will work in partnership with Contractor’s Diversion 1559
Coordinators and Contractor’s Diversion Coordinators shall cooperate and share 1560
information openly with such City employee. 1561
{Note to Proposers: The dollar amounts in this section will be filled in based on Contractor’s 1562
proposal and negotiations.} In the event that Contractor fails to provide the required 1563
number of full-time equivalent Diversion Coordinators for more than two (2) months, 1564
Contractor shall remit to the City _________ dollars ($_ _) per un-provided employee for 1565
every month (in excess of two months) such employee is not provided. Such amount shall 1566
be adjusted annually by the same percentage used to adjust Rates in accordance with 1567
Exhibit E. For example, if for six months Contractor provides only two public education staff, 1568
rather than the required three, Contractor would remit to the City a minimum of $______ 1569
(assuming no annual adjustment of the amount has occurred). Contractor shall remit such 1570
payment within fifteen (15) Business Days of a written request by the City. The intent of this 1571
payment is for the City to utilize the funds to separately procure equivalent public education 1572
services and ensure the contractually agreed upon levels of technical assistance and 1573
outreach to Customers. 1574
F. Key Personnel. Contractor shall make every reasonable effort to maintain the stability and 1575
continuity of Contractor’s staff assigned to perform the services required under this Agreement. 1576
Contractor shall notify the City of any changes in Contractor’s key staff to be assigned to perform 1577
the services required under this Agreement and shall obtain the approval of the City Contract 1578
Manager of all proposed key staff members who are to be assigned to perform services under this 1579
Agreement prior to any such performance. 1580
Notwithstanding City’s approval of Contractor’s personnel, Contractor shall not be relieved from 1581
any liability resulting from the work to be performed under this Agreement, nor shall Contractor 1582
be relieved from its obligation to ensure that its personnel maintain all requisite certifications, 1583
licenses, and the like, and Contractor shall ensure that its personnel at all times fully comply with 1584
June 9, 2020 Item #10 Page 127 of 286
Applicable Law. 1585
At any point during the Term of this Agreement, the City may request, in writing, that any of 1586
Contractor’s employees be reassigned such that they no longer perform any work relating to this 1587
Agreement, and shall provide a statement describing the reason for such request. Within twenty-1588
four (24) hours of Contractor’s receipt of such request, or such other time agreed to by City in 1589
writing, Contractor shall remove the identified employee(s) from performing any work related to 1590
this Agreement; the vacated position(s) must be filled by Contractor with a suitable replacement 1591
within ten (10) calendar days and Contractor shall immediately fill the vacated position with a 1592
temporary replacement if required to perform, without delay, all services required under this 1593
Agreement. 1594
5.8 HAZARDOUS WASTE INSPECTION AND HANDLING 1595
A. Inspection Program and Training. Contractor shall develop a load inspection program that 1596
includes the following components: (i) personnel and training; (ii) load checking activities; (iii) 1597
management of wastes; and, (iv) record keeping and emergency procedures. 1598
Contractor’s load checking personnel, including its Collection vehicle drivers, shall be trained in: 1599
(i) the effects of Hazardous Substances on human health and the environment; (ii) identification 1600
of prohibited materials; and, (iii) emergency notification and response procedures. Collection 1601
vehicle drivers shall inspect Containers before Collection when practical. 1602
B. Response to Excluded Waste Identified During Collection. If Contractor determines that material 1603
placed in any Container for Collection is Excluded Waste or presents a hazard to Contractor's 1604
employees, the Contractor shall have the right to refuse to accept such material. The Generator 1605
shall be contacted by the Contractor and requested to arrange proper Disposal. If the Generator 1606
cannot be reached immediately, the Contractor shall, before leaving the Premises, leave Non-1607
Collection Notice, which indicates the reason for refusing to Collect the material and lists the 1608
phone number of a facility that accepts the Excluded Waste or a phone number of an entity that 1609
can provide information on proper Disposal of the Excluded Waste. Under no circumstances shall 1610
Contractor’s employees knowingly Collect Excluded Waste or remove unsafe or poorly 1611
containerized Excluded Waste from a Collection Container. {Note to Proposers: This may be 1612
revised as needed to reflect Contractor’s proposed approach to non-Collection noticing.} 1613
If Excluded Waste is found in a Collection Container or Collection area that could possibly result 1614
in imminent danger to people or property, the Contractor shall immediately notify the Fire 1615
Department. 1616
C. Response to Excluded Waste Identified At Processing or Disposal Facility. Materials Collected by 1617
Contractor will be delivered to the Approved Facilities for purposes of Processing or Disposal. In 1618
the event that load checkers and/or equipment operators at such facility identify Excluded Waste 1619
in the loads delivered by Contractor, such personnel shall remove these materials for storage in 1620
approved, on-site, Excluded Waste storage Container(s). Contractor shall arrange for removal of 1621
the Excluded Wastes at its cost by permitted haulers in accordance with Applicable Laws and 1622
regulatory requirements. The Contractor may at its sole expense attempt to identify and recover 1623
the cost of Disposal from the Generator. If the Generator can be successfully identified, the cost 1624
of this effort, as well as the cost of Disposal shall be chargeable to the Generator. 1625
June 9, 2020 Item #10 Page 128 of 286
5.9 CONTRACT MANAGEMENT 1626
Consistent with Section 12.10, the City Contract Manager shall monitor and administer of this Agreement. 1627
Contractor shall designate an employee to serve as Contractor’s Contract Manager(s), to be responsible 1628
for working closely with the City Contractor Manager in the monitoring and administration of this 1629
Agreement. The Contractor’s Contract Manager shall not be involved in the management, operations, 1630
administration, marketing, or other activities of Contractor other than under this Agreement and up to 1631
one (1) other community’s franchise agreement. Contractor shall be responsible for notifying the City 1632
Contract Manager of such other community and any change in assignments. 1633
The Contractor’s Contract Manager shall meet and confer with the City Contract Manager to resolve 1634
differences of interpretation and implement and execute the requirements of this Agreement in an 1635
efficient, effective, manner that is consistent with the stated objectives of this Agreement. 1636
The City Contract Manager and the Contractors Contract Manager shall hold contract management 1637
meetings monthly or at such other frequency as designated by the City Contract Manager. This meeting 1638
is intended to review the status of Contractor’s implementation of programs and services required under 1639
this Agreement, coordinate shared efforts between the parties, and such other agenda items as are 1640
deemed appropriate by the Parties for such meetings. 1641
From time to time the City Contract Manager may designate other agents of City to work with Contractor 1642
on specific matters. In such cases, those individuals should be considered designates of the City Contract 1643
Manager for those matters to which they have been engaged. Such designates shall be afforded all of the 1644
rights and access granted thereto. In the event of a dispute between the City Contract Manager’s 1645
designate and Contractor, the City Contract Manager’s determination shall be conclusive. 1646
In the event of dispute between the City Contract Manager and the Contractor regarding the 1647
interpretation of or the performance of services under this Agreement, the City Contract Manager’s 1648
determination shall be conclusive except where such determination results in a material impact to the 1649
Contractor’s revenue and/or cost of operations. In the event of a dispute between the City Contract 1650
Manager and the Contractor results in such material impact to the Contractor, the provisions of Section 1651
10.9 shall apply. For the purposes of this section, “material impact” is an amount equal to or greater than 1652
one (1) percent of Contractor’s annual Gross Receipts under this Agreement. 1653
City Contract Manager or their designate shall have the right to observe and review Contractor operations 1654
and Processing Facilities and enter Premises for the purposes of such observation and review, including 1655
review of Contractor’s records, during reasonable hours with reasonable notice. In no event shall 1656
Contractor prevent access to such Premises for a period of more than three (3) calendar days after 1657
receiving such a request. City Contract Manager shall be granted access to Contractor’s information 1658
systems and Customer service database in accordance with Section 4.10. 1659
5.10 ENVIRONMENTALLY-PREFERABLE PURCHASING 1660
Contractor shall, prior to the Commencement Date, develop and implement an “Environmentally 1661
Preferable Purchasing Policy”. The policy shall be subject to review, request for modification, and approval 1662
by the City Contract Manager. The policy shall, at a minimum, include provisions for: (1) purchasing 1663
materials with the highest available recycled content without materially degrading the performance of 1664
the product; (2) purchasing materials that utilize non-toxic, non-polluting alternative chemistry; (3) a 1665
twenty percent (20%) price preference, relative to virgin or toxic content products, for purchasing 1666
June 9, 2020 Item #10 Page 129 of 286
environmentally preferable materials and supplies; and, (4) source reduction and pollution prevention 1667
strategies for Contractor’s operations. Contractor shall include a summary of their environmentally-1668
preferable purchasing activities in their Annual Report to City (e.g., volume of recycled content paper 1669
purchased, source reduction strategies implemented during the year and the quantified results of that 1670
strategy, etc.). 1671
5.11 LOCAL PURCHASING PREFERENCE 1672
Contractor shall, throughout the Term of this Agreement, give preference to purchasing materials and 1673
supplies used in connection with Agreement from local vendors within the County or State; and in that 1674
order of preference. At a minimum, Contractor shall purchase the following items from vendors within 1675
the County: vehicle supplies (e.g., fuel, fluids, tires, parts, etc.); printing and publishing services for any 1676
and all public education and outreach materials; uniforms, safety clothing/equipment, and work boots; 1677
and office supplies. Contractor shall submit an annual report to City identifying their compliance with this 1678
Section and as identified in Section 5.12 Diversion Requirements. 1679
Contractor shall perform services under this Agreement in a manner which supports the City’s 1680
environmental goals. This includes, but is not limited to, providing services, education, and outreach to 1681
Customers and in the community which promote source reduction, reuse, Recycling, Composting, and 1682
other methods to reduce landfill Disposal. Contractor is expected, during each and every one of its 1683
interactions with Customers, to suggest opportunities for Customers to reduce their Solid Waste 1684
subscription levels and increase the level of Recyclable Materials and Organic Materials service received. 1685
Contractor shall maintain at least fifty percent (50%) Diversion of all materials Collected in the City 1686
(including both materials Collected by Contractor under this Agreement, and Commercial Recyclable 1687
Materials, Organic Materials, and C&D Collected by other City-approved service providers in accordance 1688
with Section 1.2). The Diversion percentage shall be calculated as Total Tons Diverted divided by Total 1689
Tons Collected. Total Tons Diverted does not include processing residue that is Disposed. {Note to 1690
Proposers: The 50% diversion requirement is for the Base Proposals only. The final diversion requirement 1691
will be determined following selection of the final service package. The City anticipates that the final 1692
diversion requirements will reflect some degree or measure of year-over-year improvement in diversion 1693
each year of the Term.} 1694
Contractor shall also Divert at least 85% of Recyclable Materials Collected in the City by Contractor and 1695
70% of Commercial/MFD Organic Materials Collected in the City by Contractor (excluding source 1696
separated wood and yard trimmings collected in Drop Boxes.) Disposed processing residue must not 1697
exceed 15% for Recyclable Materials or 30% for Commercial/MFD Organic Materials, calculated on an 1698
annual average. 1699
5.13 CUSTOMER REBATES FOR FAILURE TO PROVIDE SERVICE 1700
A. General. Contractor and City agree that Contractor’s failure to provide service in accordance with 1701
Articles 4 and 5 of this Agreement will result in the impacted Customer receiving a lower level of 1702
service than is anticipated by the Customer’s subscribed Rate, and creates additional burdens on 1703
the impacted Customer. To account for this, Contractor shall issue rebates to Customers for 1704
specific events of non-performance, in accordance with this Section 5.13. Such rebates shall be 1705
assessed for each calendar day the issue remains unresolved. Contractor shall issue such rebates 1706
automatically, regardless of whether or not the impacted Customer requests a rebate. Rebates as 1707
June 9, 2020 Item #10 Page 130 of 286
described in this Section 5.13 shall be in addition to any Liquidated Damages or other remedies 1708
associated with Contractor’s failure to perform. 1709
B. Missed Collection Rebate. For each failure to resolve a missed or incomplete Collection on the 1710
scheduled collection day, Contractor shall remit to the Customer a Missed Collection Rebate. The 1711
Missed Collection Rebate amount shall be five dollars ($5.00) per calendar day in Rate Period Zero 1712
and Rate Period One, and shall be adjusted annually thereafter by the same percentage used to 1713
adjust Rates in accordance with Exhibit E. Contractor shall continue to remit the Missed Collection 1714
Rebate each calendar day until the Container(s) in question have been Collected. As an example, 1715
for a Collection scheduled for Friday that Contractor misses and subsequently collects on the 1716
following Monday, Contractor shall rebate the Customer the current Missed Collection Rebate 1717
rate multiplied by three calendar days. The Missed Collection Rebate applies to missed Collections 1718
of all material types, including but not limited to Bulky Items and Reusable Materials, Used Motor 1719
Oil and Filters, household batteries, and Cardboard overages. 1720
C. Late Container Delivery Rebate. For each failure to deliver a Container to a new or existing 1721
Customer in accordance with the schedule provided in Section 5.6, Contractor shall remit to the 1722
Customer a Late Container Delivery Rebate. The Late Container Delivery Rebate amount shall be 1723
five dollars ($5.00) per calendar day per Container in Rate Period Zero and Rate Period One, and 1724
shall be adjusted annually thereafter by the same percentage used to adjust Rates in accordance 1725
with Exhibit E. Contractor shall continue to remit the Late Container Delivery Rebate each calendar 1726
day until the Container(s) in question have been delivered. The Late Container Delivery Rebate 1727
applies to all approved Containers, including but not limited to a Used Motor Oil Recovery Kits, if an 1728
empty Used Oil Recovery Kit is not left when the full kit is Collected, in accordance with Section 4 of 1729
Exhibit B1. 1730
D. Reporting Requirements: 1731
i. Missed Collection Rebate Report: Additionally, on no less than a weekly basis, Contractors 1732
Contract Administrator shall update the Customer’s account records to note the Missed Collection 1733
Rebate event(s). Contractor shall maintain records and report to the City monthly on Missed 1734
Collection Rebate monitoring activities and actions taken. The monthly report shall include, but is 1735
not limited to: list of Customers that were provided rebates, date of rebate, amount of rebate, 1736
list of customer complaints relating to Missed Collection, and Contractors response and actions 1737
taken in response to Customer Complaints. 1738
ii. Late Container Delivery Rebate Report: Additionally, on no less than a weekly basis, Contractors 1739
Contract Administrator shall update the Customer’s account records to note the Late Container 1740
Delivery event(s). Contractor shall maintain records and report to the City monthly on Late 1741
Container Delivery monitoring activities and actions taken. The monthly report shall include, but 1742
is not limited to: list of Customers that were provided rebates, date of rebate, amount of rebate, 1743
list of customer complaints relating to Late Container Delivery, and Contractors response and 1744
actions taken in response to Customer Complaints. 1745
June 9, 2020 Item #10 Page 131 of 286
ARTICLE 6. 1746
RECORD KEEPING AND REPORTING 1747
6.1 RECORD KEEPING 1748
Contractor shall maintain Customer contact data, Customer service, accounting, statistical, operational, 1749
programmatic, and other records, and associated documentation, related to its performance as shall be 1750
necessary to provide detailed and accurate reports under this Agreement, and to demonstrate compliance 1751
with this Agreement and Applicable Law. Unless otherwise required in this Article, Contractor shall retain 1752
all records and data required to be maintained by this Agreement for the Term of this Agreement plus five 1753
(5) years after its expiration or earlier termination. Records and data shall be in chronological and 1754
organized form that is readily and easily interpreted to facilitate the flexible use of data to structure 1755
reports. Contractor’s records shall be stored in one central location, physical or electronic, that can be 1756
readily accessed by Contractor. Upon request, any such records shall be retrieved in a timely manner, not 1757
to exceed five (5) Working Days of a request by the City Contract Manager, and made available to the City 1758
Contract Manager; including any record or documentation that City, in their sole discretion, may deem 1759
necessary, for the City to fulfill obligations under Applicable Law including, but not limited to, AB 939, AB 1760
341, AB 1826, AB 876, AB 901, SB 1383, and other current or future federal, State, or local regulations, as 1761
amended. 1762
Contractor shall maintain adequate record security to preserve records from events that can be 1763
reasonably anticipated such as a fire, theft, and an earthquake. Electronically-maintained data and 1764
records shall be protected and backed-up. The City reserves the right to require the Contractor to maintain 1765
the records required herein using a City-selected web-based software platform, at Contractor’s expense. 1766
To the extent that Contractor utilizes its computer systems to comply with record keeping and reporting 1767
requirements under this Agreement, Contractor shall, on a monthly basis, save all system-generated 1768
reports supporting those record keeping and reporting requirements in a static format in order to provide 1769
an audit trail for all data required by City, as requested, under this agreement. 1770
At a mutually agreed upon time during normal business hours, but within five (5) work days of a written 1771
request, Contractor shall provide to the City the Contractor’s data and records with respect to the matters 1772
covered by this Agreement and applicable law. Contractor shall permit the City, or its designee, to audit, 1773
examine, and make excerpts or transcripts from such data and records, and make copies of all data 1774
relating to all matters covered by this Agreement and the applicable law. Contractor shall maintain such 1775
data and records in an accessible location and condition for a period of not less than five (5) years 1776
following the City’s receipt of final payment under this Agreement unless the City agrees in writing to an 1777
earlier disposition. Contractor agrees that all data regarding business operations, customer lists, routing, 1778
tonnage, Service Levels, work orders issued from dispatch, customer service logs and account notes, and 1779
work force and bargaining agreements, do not constitute Proprietary Information or trade secrets and 1780
shall be made available to the City Contract Manager or their designee upon request and within the 1781
timelines required by this Section 6.1. City is subject to the California Public Records Act (Government 1782
Code section 6250, et. seq.) and nothing in this Agreement is intended to impair City’s requirements or 1783
obligations under that Act. 1784
City views its ability to defend itself against Comprehensive Environmental Response, Compensation and 1785
Liability Act (CERCLA), and related litigation as a matter of great importance. For this reason, City regards 1786
its ability to prove where Collected Recyclable Materials, Organic Materials, and Solid Waste are taken for 1787
Transfer, Processing, or Disposal. Contractor shall maintain records which can establish where Recyclable 1788
June 9, 2020 Item #10 Page 132 of 286
Materials, Organic Materials, and Solid Waste Collected were Transferred, Processed, or Disposed. This 1789
provision shall survive the expiration or earlier termination of this Agreement. Contractor shall maintain 1790
these records for a minimum of ten (10) years beyond expiration or earlier termination of the Agreement. 1791
Contractor shall provide these records to City (upon request or at the end of the record retention period) 1792
in an organized and indexed manner rather than destroying or Disposing of them. 1793
6.2 REPORT SUBMITTAL REQUIREMENTS 1794
Contractor shall submit monthly reports within fourteen (14) calendar days after the end of the calendar 1795
month and annual reports no later than forty-five (45) calendar days after the end of each calendar year. 1796
Monthly and annual reports shall include at a minimum, all data and information described in Exhibit D, 1797
unless otherwise specified under this Agreement. 1798
Contractor may propose report formats that are responsive to the objectives and audiences for each 1799
report. The format of each report shall be approved by the City Contract Manager, in their sole discretion. 1800
City Contract Manager may, from time to time during the Term, review, and request changes to 1801
Contractor’s report formats and content and Contractor shall not unreasonably deny such requests. 1802
Contractor shall submit all reports to the City Contract Manager electronically via e-mail using software 1803
acceptable to the City. The City reserves the right to require the Contractor to maintain records and submit 1804
the reports required herein through use of a City-selected web-based software platform, at the 1805
Contractor’s expense. 1806
City reserves the right to require Contractor to provide additional reports or documents as City Contract 1807
Manager reasonably determines to be required for the administration of this Agreement or compliance 1808
with Applicable Law. 1809
6.3 PERFORMANCE REVIEW AND AUDIT 1810
The City may conduct, and Contractor shall cooperate with, two (2) performance reviews and detailed 1811
financial audits, at any point during the Term of this Agreement in the City Contract Manager’s sole 1812
discretion, to verify Contractor has fulfilled its financial and operational obligations under this Agreement. 1813
The purpose of such review and audit shall be, without limitation, to review Complaints, billings, and fee 1814
payments to City, and to determine if Contractor has met the performance standards described in this 1815
Agreement (including, without limitation, direct services provided to Customers as described in Exhibit B, 1816
public education and outreach required in Exhibit C, recordkeeping and reporting as required in Exhibit D, 1817
and performance standards established in Exhibit F). City may choose to enlist professional service 1818
providers to perform such review and audit, and Contractor shall be required to pay City’s actual costs for 1819
such services up to ninety thousand dollars ($90,000) per review (such amount shall be adjusted annually 1820
by the annual percentage change in CPI-U, calculated in accordance with Exhibit E). Contractor may not 1821
influence or control the City’s selection of professional service providers nor the specific review items 1822
covered by the review. Contractor shall cooperate with the City and its agents during the review and audit 1823
process. If any noncompliance with the Agreement is found, the City may direct the Contractor to correct 1824
the inadequacies in accordance with Article 10 of this Agreement. 1825
At the City’s sole option, with at least thirty (30) calendar days written notification to the Contractor, it 1826
may conduct a public hearing at which the Contractor shall be present and shall participate, to review the 1827
Contractor's performance, quality of service, and evaluation of technological and regulatory changes. The 1828
reports required by Exhibit D to this Agreement regarding Customer Complaints may be utilized as a basis 1829
June 9, 2020 Item #10 Page 133 of 286
for review as well as any findings from performance review and/or audits. Performance and service quality 1830
review hearings may be scheduled by the City at its discretion throughout the Term of the Agreement. 1831
In addition to the other requirements of this Agreement, the Parties shall be subject to the examination 1832
and audit of the State Auditor for a period of three (3) years after final payment under the Agreement, 1833
per Government Code section 8546.7. 1834
ARTICLE 7. 1835 CITY REIMBURSEMENT 1836
7.1 FRANCHISE FEE 1837
The Contractor shall pay a Franchise Fee to City each month in exchange for the exclusive rights granted 1838
under this Agreement. The amount of the Franchise Fee shall be equal to ________ percent (X.X%) of 1839
Gross Receipts, paid out of Contractor’s Profit, for all services performed under this Agreement and shall 1840
be paid in monthly installments. {Note to Proposer: The City intends to negotiate this amount with the 1841
selected proposer. The amount provided is the current fee received by the City.} 1842
7.2 AB 939/SB 1383 REIMBURSEMENT 1843
The Contractor shall pay an AB 939/SB 1383 Reimbursement to City each month. The amount of the AB 1844
939/SB 1383 Reimbursement shall be twenty-one thousand six hundred sixty-six dollars ($21,666) per 1845
month in Rate Period One and shall be paid in equal monthly installments. City shall use the AB 939/SB 1846
1383 Reimbursement to refund expenses including but not limited to, staffing costs related to City 1847
programs, pilot studies, education and outreach campaigns, technical assistance to Customers, reporting, 1848
compliance, capacity planning, provision of special containers, or other activities involved in compliance 1849
with AB 939 and/or SB 1383. The City shall retain the sole right to set priorities for the use of its AB 939/SB 1850
1383 Fee. This fee shall be a pass-through cost. {Note to Proposer: The City intends to negotiate this 1851
amount with the selected proposer.} 1852
7.3 VEHICLE IMPACT MITIGATION REIMBURSEMENT 1853
The Contractor shall pay a Vehicle Impact Mitigation Fee to City each month. The amount of the Vehicle 1854
Impact Mitigation Fee shall be zero dollars ($0) per month in Rate Period One. This fee is to reimburse the 1855
City for street maintenance costs incurred from Collection vehicles traveling on City streets. {Note to 1856
Proposer: The City intends to negotiate this amount with the selected proposer.} 1857
7.4 STORM WATER REIMBURSEMENT 1858
The Contractor shall pay a Storm water reimbursement to the City each month. The amount of the 1859
Household Hazardous Waste Fee shall equal $______ in Rate Period One. This payment is to reimburse 1860
the City for the cost of providing certain storm water-related services and programs that are related to 1861
the provision of Solid Waste services. {Note to Proposer: The City intends to negotiate this amount with 1862
the selected proposer.} 1863
7.5 ADJUSTMENT TO REIMBURSEMENT 1864
City may set other reimbursement payments or adjust the reimbursement amounts established in this 1865
June 9, 2020 Item #10 Page 134 of 286
Article from time-to-time during the Term of this Agreement and such adjustments shall be included in 1866
the adjustment of Rates described in Exhibit E. 1867
The amounts of the AB 939/SB 1383 Fee and Storm water reimbursement for subsequent Rate Periods 1868
shall be adjusted annually by the same Annual Percentage Change in the CPI-U, calculated in accordance 1869
with the adjustment method described in Exhibit E. 1870
7.6 PAYMENT SCHEDULE AND LATE FEES 1871
Within twenty (20) calendar days of the end of each calendar month, during the Term of this Agreement, 1872
Contractor shall remit to City all fees as described in this Article. Such fees shall be remitted to City and 1873
sent or delivered to the City Contract Manager. If such remittance is not paid to City on or before the 1874
twentieth (20th) calendar day following the end of a calendar month, all fees due shall be subject to a 1875
delinquency penalty of one and one-half percent (1.5%), which attaches on the first day of delinquency. 1876
The delinquency penalty shall be increased an additional one and one-half percent (1.5%) for each 1877
additional month the payment remains delinquent. 1878
Each monthly remittance to City shall be accompanied by a statement listing the amount of each fee paid; 1879
calculation of each fee; and, statement of Gross Receipts which separately identifies SB 1383 Fee Eligible 1880
Revenues, by Customer Type for the period collected from all operations conducted or permitted by this 1881
Agreement. City Contract Manager may, at any time during the Term, request a detailed calculation of 1882
Gross Receipts which may include, but is not necessarily limited to, the number of Customers charged at 1883
each Service Level and Rate for each billing period. Contractor shall maintain all supporting documents 1884
and calculations for each payment made to City as required by Section 6.1. 1885
City Contract Manager may, at any time during the Term, perform an audit of Contractor’s billings and 1886
payment of fees. Contractor shall cooperate with the City Contract Manager in any such audit. Should City 1887
or its agent perform this review and identify billing errors or other errors in payment of fees valued at one 1888
(1) percent or more of Gross Receipts for the period reviewed, Contractor shall, in addition to 1889
compensating City for lost fees, reimburse the City’s actual cost of the review. 1890
7.7 PROCUREMENT REIMBURSEMENT 1891
Within (5) Business Days of the Effective Date of this Agreement, Contractor shall pay the City a one-time 1892
reimbursement of three hundred thousand dollars ($300,000) to compensate City for its costs associated 1893
with performing due diligence related to the selection of Contractor for this Agreement. 1894
ARTICLE 8. 1895 CONTRACTOR’S COMPENSATION AND RATE 1896 SETTING 1897
8.1 GENERAL 1898
The Contractor’s compensation for performance of all its obligations under this Agreement shall be Gross 1899
Receipts. Contractor’s compensation provided for in this Article shall be the full, entire and complete 1900
compensation due to Contractor pursuant to this Agreement for all labor, equipment, materials and 1901
supplies, Transfer, Processing and Disposal fees, City Fees, taxes, insurance, bonds, overhead, operations, 1902
profit, and all other things necessary to perform all the services required by this Agreement in the manner 1903
June 9, 2020 Item #10 Page 135 of 286
and at the times prescribed. Nothing herein shall obligate City to provide any compensation to Contractor 1904
beyond Gross Receipts. 1905
If Contractor’s actual costs, including fees due to City, are more than Gross Receipts, Contractor shall not 1906
be compensated for the difference in actual costs and actual Gross Receipts. If Contractor’s actual costs 1907
are less than the actual Gross Receipts, Contractor shall retain the difference provided that Contractor 1908
has paid City fees pursuant to Article 7. 1909
Under this Agreement, Contractor shall have the right and obligation to charge and collect from 1910
Customers, Rates in Exhibit G3 that are approved by the City for provision of services to Customers. The 1911
Rates for Rate Period One are based on the Contractor’s Proposal. Contractor’s proposed costs and 1912
operating assumptions for Rate Period Zero and Rate Period One are presented in Exhibit G3. This 1913
Agreement includes references to Contractor’s ability to charge Customers for various services provided 1914
and described in this Agreement. Contractor may not charge Customer any Rate which is not approved in 1915
Exhibit G3, as may be amended from time to time. Exhibit G3 includes descriptions of the basis for and 1916
occasions upon which Contractor may charge those Rates. Contractor may not charge a Rate for a service 1917
other than that which is described in Exhibit G3. In the event of a conflict between Exhibit G3 and any 1918
other provision of this Agreement, the description in Exhibit G3 shall control. 1919
The Approved Recyclable Materials Processing Facility shall retain revenues received for the sale of 1920
Recyclable Materials including California Redemption Value revenues. Such revenues have been 1921
considered in the establishment of Rates for services provided under this Agreement. Neither Contractor 1922
nor the Approved Recyclable Materials Processing Facility are entitled to funds available through the 1923
Department of Resources Recycling and Recovery (CalRecycle) through its “City/County Payment 1924
Program” pursuant to Section 14581(a)(5)(A) of the California Beverage Container Recycling and Litter 1925
Reduction Act. 1926
8.2 RATES AND ANNUAL ADJUSTMENTS 1927
A. General. The City Contract Manager shall be responsible for approving Rates as described in this 1928
Article. If at any time during the Term of the Agreement, the Contractor determines the need for 1929
a Rate that does not appear on the City-approved Rate schedule in Exhibit G3, Contractor shall 1930
immediately notify the City Contract Manager and request establishment of such Rate. For 1931
example, if a Customer requires Collection of Organic Materials in a fifteen (15) cubic yard 1932
Compactor five (5) times per week and the City-approved Rate schedule does not include this 1933
level of service, the Contractor must request that the City approve a Rate for this level of service. 1934
Approval of Rates described in this Section 8.2 may be made by the City Contract Manager. 1935
B. Rates for Rate Period One. Rates for Rate Period One, which are presented in Exhibit G3, were 1936
determined by Contractor and City and were approved along with the Agreement. The Rates for 1937
Rate Period One shall be effective from July 1, 2022 through June 30, 2023. 1938
C. Rates for Subsequent Rate Periods. Rates for subsequent Rate Periods shall be adjusted annually 1939
in accordance with this Section 8.2 and Exhibit E. 1940
The index-based adjustment, which is described in Exhibit E1, involves use of various cost 1941
adjustment factors (such as the percentage change in the consumer price index and changes in 1942
tonnage and tipping fees) to calculate adjusted Rates. Such Rate adjustment calculations shall be 1943
performed in strict conformance to the procedures described in Exhibit E1. 1944
June 9, 2020 Item #10 Page 136 of 286
In Rate Periods Four (4) and/or Eight (8) Rates shall be adjusted using the cost-based methodology 1945
described in Exhibit E2 that involves a review of Contractor’s actual costs and revenues and 1946
projection of costs and revenues for the coming Rate Period. This cost-based Rate adjustment will 1947
be performed instead of the index-based rate adjustment for that Rate Period. The cost-based 1948
adjustment process is intended to provide the City an opportunity to adjust Rates to more 1949
accurately reflect actual revenues and costs of operations. Such Rate adjustment calculations shall 1950
be performed in strict conformance to the procedures described in Exhibit E2. 1951
D. Rate Structure. The City may, at any time during the term of this Agreement and in its sole 1952
discretion, change the relationship of individual Rates in comparison with other Rates. Any such 1953
changes would occur in conjunction with the annual Rate adjustment process described in Section 1954
8.2.D or in conjunction with a Rate adjustment resulting from an extraordinary Rate adjustment 1955
in accordance with Section 8.3. Changes to the rates charged under the new structure shall be 1956
calculated in such a way that the revised Rate structure generates at least the same amount of 1957
total revenue when the current number of accounts at each Service Level are multiplied by the 1958
Rates charged for each Service Level and the total for all Service Levels are summed. 1959
8.3 EXTRAORDINARY RATE ADJUSTMENTS 1960
It is understood that the Contractor accepts the risk for changes in cost of providing services and the 1961
service levels requested by Customers and therefore the extraordinary adjustments to Rates shall be 1962
limited to a Change in Law or a City-directed change in scope. If a Change in Law or City-directed change 1963
in scope (pursuant to Section 3.5) occurs, the Contractor may petition City for an adjustment to the Rates 1964
in excess of the annual adjustment described in Section 8.2. 1965
Contractor shall prepare an application for the extraordinary Rate increase. Such submittal shall be 1966
prepared in compliance with the procedures described in Exhibit E2 and shall provide all information 1967
requested by City Contract Manager specific to the nature of the request being made. Contractor shall 1968
pay all reasonable costs incurred by City, including the costs of outside accountants, attorneys, and/or 1969
consultants, in order determine the reasonableness of the requested Rate adjustment. The application 1970
shall clearly document the reason for the proposed adjustment, include calculation of the proposed Rate 1971
adjustments, and provide supporting documentation. 1972
In the event of such an application for extraordinary Rate increase, it is understood that the Contractor 1973
shall have the burden of demonstrating to the reasonable satisfaction of the City Contract Manager that 1974
the failure of City to adjust the Rates will result in the Contractor’s financial loss or failure to achieve 1975
reasonable profitability due to the Change in Law or City-directed change in scope. The Contractor will 1976
have to demonstrate financial loss or a failure to achieve reasonable profitability by allowing for City 1977
Contract Manager review of financial statements and supporting documentation. 1978
The City Contract Manager shall have the right to request any other information that they, in their sole 1979
judgment, determine is necessary to establish the reasonableness or accuracy of Contractor’s request for 1980
an extraordinary Rate increase. Contractor’s failure to fully cooperate in a timely manner with any 1981
reasonable request for information by the City Contract Manager may result in either the denial of or a 1982
delay in the approval of the request for an extraordinary Rate increase 1983
June 9, 2020 Item #10 Page 137 of 286
ARTICLE 9. 1984
INDEMNITY, INSURANCE, AND PERFORMANCE 1985 BOND 1986
9.1 INDEMNIFICATION 1987
A. General. Contractor shall indemnify, defend with counsel acceptable to City, and hold harmless 1988
(to the full extent permitted by law) City and its officers, officials, employees, volunteers, and 1989
agents from and against any and all claims, liability, loss, injuries, damage, expense, and costs 1990
(including without limitation costs and fees of litigation, including attorneys’ and expert witness 1991
fees) (collectively, “Damages”) of every nature arising out of or in connection with Contractor’s 1992
performance, and the performance of any subcontractor, or agent of Contractor, under this 1993
Agreement, or its failure to comply with any of its obligations contained in the Agreement, except 1994
to the extent such loss or damage was caused by the negligence or willful misconduct of City. This 1995
Section 9.1 shall survive the expiration or termination of this Agreement and shall not be 1996
construed as a waiver of City’s legal and/or equitable rights as defined herein and permitted under 1997
Applicable Law. 1998
B. Excluded Waste. Contractor acknowledges that it is responsible for compliance during the entire 1999
Term of this Agreement with all Applicable Laws. Contractor shall not store, transport, use, or 2000
Dispose of any Excluded Waste except in strict compliance with all Applicable Laws. 2001
If Contractor negligently or willfully mishandles Excluded Waste in the course of carrying out its 2002
activities under this Agreement, Contractor shall at its sole expense promptly take all investigatory 2003
and/or remedial action reasonably required for the remediation of such environmental 2004
contamination. Prior to undertaking any investigatory or remedial action, however, Contractor 2005
shall first obtain City’s approval of any proposed investigatory or remedial action. Should 2006
Contractor fail at any time to promptly take such action, City may undertake such action at 2007
Contractor’s sole cost and expense, and Contractor shall reimburse City for all such expenses 2008
within thirty (30) calendar days of being billed for those expenses, and any amount not paid within 2009
that thirty (30) calendar day period shall thereafter be deemed delinquent and subject to the 2010
delinquent fee payment provision of Section 7.8. These obligations are in addition to any defense 2011
and indemnity obligations that Contractor may have under this Agreement. 2012
Notwithstanding the foregoing, Contractor’s duties under this subsection shall not extend to any 2013
claims arising from the Disposal of Solid Waste at the Designated Disposal Facility, including, but 2014
not limited to, claims arising under Comprehensive Environmental Response, Compensation and 2015
Liability Act (CERCLA) unless such claim is a direct result of Contractor’s negligence or willful 2016
misconduct. 2017
C. Environmental Indemnity. Contractor shall defend with counsel acceptable to City, indemnify, 2018
and hold City harmless against and from any and all claims, suits, losses, penalties, damages, and 2019
liability for damages of every name, kind and description, including attorneys’ fees and costs 2020
incurred, attributable to the negligence or willful misconduct of Contractor in handling Excluded 2021
Waste. 2022
D. Electronic and Web based Information Indemnity. Contractor shall defend with counsel 2023
acceptable to City, indemnify, and hold City harmless against and from any and all cyber-related 2024
June 9, 2020 Item #10 Page 138 of 286
claims, including but not limited to, suits, losses, penalties, damages, responsibility for costs, 2025
regulatory fines, penalties, credit monitoring expenses, and liability for damages of every name, 2026
kind and description, including attorneys’ fees and costs incurred, attributable to the negligence 2027
or willful misconduct of Contractor and any Subcontractors used in performance of this 2028
agreement in handling or protecting Customer information over which Contractor has control, 2029
including but not limited to billing details, electronic payment(s), and customer account 2030
information that is not readily available to the general public. Contractor shall maintain electronic 2031
files and Contractor’s website in accordance with the industry best practices for maintaining such 2032
information as safely and securely as possible. Nothing in this Section 9.1(D) shall prevent or 2033
restrict Contractors obligation and responsibility to provide City with information required under 2034
this Agreement. 2035
D. Related to AB 939, AB 341, AB 1826, and SB 1383. Contractor’s duty to defend and indemnify 2036
herein includes all fines and/or penalties imposed by CalRecycle, if the requirements of AB 939, 2037
AB 341, AB 1826, and/or SB 1383 are not met by the Contractor with respect to the Contractors 2038
obligations under this Agreement, and such failure is: (i) due to the failure of Contractor to meet 2039
its obligations under this Agreement; or, (ii) due to Contractor delays in providing information 2040
that prevents Contractor or City from submitting reports to regulators in a timely manner. 2041
E. Related to Proposition 218. Should there be a Change in Law or a new judicial interpretation of 2042
Applicable Law, including, but not limited to, Article XIII C and D of the California Constitution 2043
(Commonly Proposition 218), which impacts the Rates for the Collection services established in 2044
accordance with this Agreement, Contractor agrees to meet and confer with City to discuss the 2045
impact of such Change in Law on either Party’s ability to perform under this Agreement. 2046
If, at any time, a Rate adjustment determined to be appropriate by both City and Contractor to 2047
compensate Contractor for increases in costs as described in this Agreement cannot be 2048
implemented for any reason, Contractor shall be granted the option to negotiate with City, in 2049
good faith, a reduction of services equal to the value of the Rate adjustment that cannot be 2050
implemented. If City and Contractor are unable to reach agreement about such a reduction in 2051
services, then Contractor may terminate this Agreement upon one (1) year’s prior written notice 2052
to City, in which case the Contractor and City shall each be entitled to payment of amounts due 2053
for contract performance through the date of termination but otherwise will have no further 2054
obligation to one another unless this Agreement specifically states otherwise, after the date of 2055
such termination. Should a court of competent jurisdiction determine that the Contractor cannot 2056
charge and/or increase its Rates for charges related to Franchise Fees and governmental fees and 2057
charges, Contractor shall reduce the Rates it charges Customers a corresponding amount, 2058
providing said fees, reimbursements, Rates and/or charges disallowed by the court are not related 2059
to the cost of providing service hereunder and had been incorporated in the Rates charged by 2060
Contractor to its Customers. 2061
Nothing herein is intended to imply that California Constitution, Articles XIIIC or XIIID, apply to the 2062
Rates established for services provided under this Agreement; rather this Section is provided 2063
merely to allocate risk of an adverse judicial interpretation between the Parties. 2064
F. CalPERS Eligibility Indemnification. Contractor’s employees, agents, or subcontractors providing 2065
service under this Agreement shall not: (1) qualify for any compensation and benefit under 2066
CalPERS; (2) be entitled to any benefits under CalPERS; (3) enroll in CalPERS as an employee of 2067
June 9, 2020 Item #10 Page 139 of 286
City; (4) receive any employer contributions paid by City for CalPERS benefits; or, (5) be entitled 2068
to any other CalPERS-related benefit that would accrue to a City employee. Contractor’s 2069
employees, agents, or subcontractors hereby waive any claims to benefits or compensation 2070
described in this Section 9.1. This Section 9.1 applies to Contractor notwithstanding any other 2071
agency, state or federal policy, rule, regulation, law, or ordinance to the contrary. 2072
If Contractor’s employees, agents, or subcontractors providing services under this Agreement 2073
claim, or are determined by a court of competent jurisdiction or the California Public Employees 2074
Retirement System (“CalPERS”) to be eligible for enrollment in CalPERS of the City, Contractor 2075
shall indemnify, defend, and hold harmless City for the payment of any employer and employee 2076
contributions for CalPERS benefits on behalf of the employee as well as for payment of any 2077
penalties and interest on such contributions which would otherwise be the responsibility of the 2078
City. 2079
Contractor’s Compensation under this Agreement shall be the full and complete compensation to 2080
which Contractor and Contractor’s officers, employees, agents, and subcontractors are entitled 2081
for performance of any work under this Agreement. Neither Contractor nor Contractor’s officers, 2082
employees, agents, and subcontractors are entitled to any salary or wages, or retirement, health, 2083
leave or other fringe benefits applicable to City employees. The City will not make any federal or 2084
state tax withholdings on behalf of Contractor. The City shall not be required to pay any workers’ 2085
compensation insurance on behalf of Contractor. 2086
Contractor agrees to defend and indemnify the City for any obligation, claim, suit, or demand for 2087
tax, retirement contribution including any contribution to CalPERS, social security, salary or 2088
wages, overtime payment, or workers’ compensation payment which the City may be required to 2089
make on behalf of (1) Contractor, (2) any employee of Contractor, or (3) any employee of 2090
Contractor construed to be an employee of the City, for work performed under this Agreement. 2091
9.2 INSURANCE 2092
{Note to Proposers: Final insurance provisions are subject to approval by City’s Risk Manager. 2093
A. General Requirements. Contractor shall, at its sole cost and expense, maintain in effect at all times 2094
during the Term of this Agreement not less than the following coverage and limits of insurance: 2095
B. Coverages and Requirements. During the Term of this Agreement, Contractor shall at all times 2096
maintain, at its expense, the following coverages and requirements. Failure to maintain the 2097
identified insurance requirements during the entire term of this agreement shall constitute an event 2098
of default subject to Section 10.1(C). The comprehensive general liability insurance shall include 2099
broad form property damage insurance. 2100
1. Minimum Coverages. Insurance coverage shall be with limits not less than the following: 2101
Comprehensive General Liability – $10,000,000 combined single limit per occurrence for 2102
bodily injury, personal injury, and property damage. 2103
Automobile Liability – $10,000,000 combined single limit per accident for bodily injury 2104
and property damage (include coverage for Hired and Non-owned vehicles). 2105
June 9, 2020 Item #10 Page 140 of 286
Workers’ Compensation – Statutory Limits/Employers’ Liability - $1,000,000/accident 2106
for bodily injury or disease. 2107
Employee Blanket Fidelity Bond – $500,000 per employee loss covering dishonesty, 2108
forgery, alteration, theft, disappearance, and destruction (inside or outside). 2109
Pollution Liability – $10,000,000 per loss and annual aggregate applicable to bodily injury; 2110
property damage, including loss of use of damaged property or of property that has not 2111
been physically damaged or destroyed; clean-up costs, including first party cleanup of the 2112
City’s property and third party cleanup, and bodily injury costs if pollutants impact other 2113
properties; and defense, including costs, fees and expenses incurred in the investigation, 2114
defense, or resolution of claims. Coverage shall include completed operations and shall 2115
apply to sudden and non-sudden pollution conditions. Coverage shall apply to acts, errors 2116
or omissions arising out of, or in connection with, Contractor’s scope of work under this 2117
Agreement. Coverage shall also apply to non-owned deposit sites (“NODS”) that shall 2118
protect against, for example, claims regarding bodily injury, property damage, and/or 2119
cleanup costs involving NODS. Coverage is preferred by the City to be occurrence based. 2120
However, if provided on a claims-made basis, Contractor warrants that any retroactive 2121
date applicable to coverage under the policy precedes the effective date of this 2122
Agreement, and that continuous coverage shall be maintained or an extended discovery 2123
period will be exercised for a period of five (5) years beginning from the time work under 2124
this Contract is completed. 2125
Technology Professional Liability Errors and Omissions Insurance (Cyber Liability) 2126
appropriate to the Contractor’s profession and industry practice, with limits not less than 2127
$2,000,000 per occurrence. Coverage shall be sufficiently broad to respond to the duties 2128
and obligations undertaken by Contractor in this Agreement and shall include, but not be 2129
limited to, claims involving infringement of intellectual property, copyright, trademark, 2130
invasion of privacy violations, information theft, release of private information, extortion, 2131
and network security. The policy shall provide coverage for breach response costs as well 2132
as regulatory fines and penalties as well as credit monitoring expenses with limits 2133
sufficient to respond to these obligations. 2134
a. The Policy shall include, or be endorsed to include, property damage liability 2135
coverage for damage to, alteration of, loss of, or destruction of electronic data 2136
and/or information “property” of the City in the care, custody, or control of the 2137
Contractor. If not covered under the Contractor’s liability policy, such “property” 2138
coverage of the City may be endorsed onto the Contractor’s Cyber Liability Policy 2139
as covered property as follows: 2140
b. Cyber Liability coverage in an amount sufficient to cover the full replacement 2141
value of damage to, alteration of, loss of, or destruction of electronic data and/or 2142
information “property” of the City that will be in the care, custody, or control of 2143
Contractor. 2144
2. Additional Insured. City, its officers, agents, employees, and volunteers shall be named as 2145
additional insured on all but the workers’ compensation and professional liability 2146
coverages. 2147
June 9, 2020 Item #10 Page 141 of 286
3. Said policies shall remain in force through the life of this Agreement and, with the 2148
exception of professional liability coverage, shall be payable on a “per occurrence” basis 2149
unless City’s Risk Manager specifically consents in writing to a “claims made” basis. For all 2150
“claims made” coverage, if the Contractor changes insurance carriers Contractor shall 2151
purchase “tail” coverage or otherwise provide for continuous coverage covering the Term 2152
of this Agreement and not less than three (3) years thereafter, except for the five (5) year 2153
tail of Pollution Liability Coverage as described above. Proof of such “tail” or other 2154
continuous coverage shall be required at any time that the Contractor changes to a new 2155
carrier prior to receipt of any payments due. 2156
4. The Contractor shall declare all aggregate limits on the coverage before commencing 2157
performance of this Agreement, and City’s Risk Manager reserves the right to require 2158
higher aggregate limits to ensure that the coverage limits required for this Agreement as 2159
set forth above are available throughout the performance of this Agreement. 2160
5. The deductibles or self-insured retentions are for the account of Contractor and shall be 2161
the sole responsibility of the Contractor. 2162
6. Each insurance policy shall provide or be endorsed to state that coverage shall not be 2163
suspended, voided, canceled by either Party, reduced in coverage or in limits except after 2164
thirty (30) calendar days prior written notice by certified mail, return receipt requested, 2165
has been given to City Contract Manager ten (10) Business Days for delinquent insurance 2166
premium payments). 2167
7. Insurance must be placed with insurers with a current A.M. Best’s rating of no less than 2168
A-VII, or with a surplus line carrier appearing on the List of Approved Surplus Line Insurers, 2169
(“LASLI”) with a Best’s Key Rating Guide of at least A: X. Insurers, and corresponding 2170
policies required by this Section, must also comply with all other aspects of City Council 2171
Policy # 70. 2172
8. The policies shall cover all activities of Contractor, its officers, employees, agents and 2173
volunteers arising out of or in connection with this Agreement. 2174
9. For any claims relating to this Agreement, the Contractor’s insurance coverage shall be 2175
primary, including as respects City, its officers, agents, employees, and volunteers. Any 2176
insurance maintained by City shall apply in excess of, and not contribute with, insurance 2177
provided by Contractor’s liability insurance policy. 2178
10. The Contractor shall waive all rights of subrogation against City, its officers, employees, 2179
agents, and volunteers. 2180
C. Endorsements. Prior to the Effective Date pursuant to this Agreement, Contractor shall furnish 2181
City Contract Manager with certificates or original endorsements reflecting coverage required by 2182
this Agreement. The certificates or endorsements are to be signed by a Person authorized by that 2183
insurer to bind coverage on its behalf. All certificates or endorsements are to be received by, and 2184
are subject to the approval of, City Risk Manager before work commences. 2185
D. Renewals. During the Term of this Agreement, Contractor shall furnish City Contract Manager 2186
with certificates or original endorsements reflecting renewals, changes in insurance companies, 2187
June 9, 2020 Item #10 Page 142 of 286
and any other documents reflecting the maintenance of the required coverage throughout the 2188
entire Term of this Agreement. The certificates or endorsements are to be signed by a Person 2189
authorized by that insurer to bind coverage on its behalf. 2190
E. No Cap on Indemnity. The minimum amounts of coverage described in this Section 9.2 will not 2191
constitute any limitations or cap on Contractor’s indemnification obligations under this 2192
Agreement. 2193
F. Workers' Compensation. Contractor shall provide workers’ compensation coverage as required 2194
by State law, and shall comply with Section 3700 of the State Labor Code. 2195
9.3 PERFORMANCE BOND 2196
Within seven (7) calendar days of the City’s notification to Contractor that the City has executed this 2197
Agreement, Contractor shall file with the City a bond, payable to the City, securing the Contractor's 2198
performance of its obligations under this Agreement and such bond shall be renewed annually if necessary 2199
so that the performance bond is maintained at all times during the Term. The principal sum of the bond 2200
shall be {Note to Proposer: Performance Bond amount to be set at an amount equaling 25% of proposed 2201
annual gross receipts} and shall be adjusted every three (3) years, commencing with Rate Period Three, 2202
to equal three (3) months of the prior Rate Period’s annual Gross Receipts. The bond shall be executed as 2203
surety by a corporation authorized to issue surety bonds in the State of California that has a rating of A or 2204
better in the most recent edition of Best’s Key Rating Guide, and that has a record of service and financial 2205
condition satisfactory to the City. The bond shall be in the form attached as Exhibit H. 2206
ARTICLE 10. 2207 DEFAULT AND REMEDIES 2208
10.1 EVENTS OF DEFAULT 2209
All provisions of the Agreement are considered material. Each of the following shall constitute an event 2210
of default. 2211
A. Fraud or Deceit. Contractor practices, or attempts to practice, any fraud or deceit upon the City. 2212
B. Insolvency or Bankruptcy. Contractor becomes insolvent, unable, or unwilling to pay its debts, or 2213
upon listing of an order for relief in favor of Contractor in a bankruptcy proceeding. 2214
C. Failure to Maintain Coverage. Contractor fails to provide or maintain in full force the Workers’ 2215
Compensation, insurance coverage required by Section 9.2, or indemnification coverage as 2216
required by this Agreement. 2217
D. Violations of Regulation. Contractor violates any orders or filings of any regulatory body having 2218
authority over Contractor relative to this Agreement. If Contractor contests any such orders or 2219
filings by appropriate proceedings conducted in good faith, and the regulatory body determines 2220
no violation occurred, no breach or default of this Agreement shall be deemed to have occurred. 2221
E. Violations of Applicable Law. Contractor violates Applicable Law relative to this Agreement. 2222
F. Failure to Perform Direct Services. Contractor ceases to provide Collection, Transportation, or 2223
June 9, 2020 Item #10 Page 143 of 286
Processing services as required under this Agreement for a period of two (2) consecutive calendar 2224
days or more, for any reason within the control of Contractor. 2225
G. Failure to Pay or Report. Contractor fails to make any payments to City required under this 2226
Agreement including payment of City Fees or Liquidated Damages and/or refuses to provide City 2227
with required information, reports, and/or records in a timely manner as provided for in the 2228
Agreement. 2229
H. Acts or Omissions. Any other act or omission by Contractor which violates the terms, conditions, 2230
or requirements of this Agreement, or Applicable Law and which is not corrected or remedied 2231
within the time set in the written notice of the violation. Additionally, an event of default occurs 2232
if Contractor cannot reasonably correct or remedy the breach within the time set forth in a notice 2233
of violation, or if Contractor fails to commence to correct or remedy such violation within the time 2234
set forth in such notice and diligently effect such correction or remedy thereafter. 2235
I. False, Misleading, or Inaccurate Statements. Any representation or disclosure made to the City 2236
by Contractor in connection with or as an inducement to entering into this Agreement, or any 2237
future amendment to this Agreement, which proves to be false or misleading in any material 2238
respect as of the time such representation or disclosure is made, whether or not any such 2239
representation or disclosure appears as part of this Agreement. Additionally, a default occurs if 2240
any Contractor-provided report contains a misstatement, misrepresentation, data manipulation, 2241
or an omission of fact or content explicitly defined by the Agreement, excepting non-numerical 2242
typographical and grammatical errors. 2243
J. Seizure or Attachment. There is a seizure of, attachment of, or levy on, some or all of Contractor’s 2244
operating equipment, including without limits its equipment, maintenance or office facilities, 2245
Approved Facility(ies), or any part thereof. 2246
K. Suspension or Termination of Service. There is any termination or suspension of the transaction 2247
of business by Contractor related to this Agreement, including without limit, due to labor unrest 2248
including strike, work stoppage or slowdown, sick-out, picketing, or other concerted job action 2249
lasting more than two (2) calendar days. 2250
L. Criminal Activity. Contractor, its officers, managers, or employees are found guilty of criminal 2251
activity related directly or indirectly to performance of this Agreement or any other agreement 2252
held with the City. 2253
M. Assignment without Approval. Contractor transfers or assigns this Agreement without the 2254
expressed written approval of the City unless the assignment is permitted without City approval 2255
pursuant to Section 12.6. 2256
N. Failure to Provide Proposal or Implement Change in Service. Contractor fails to provide a 2257
proposal for new services or changes to services or fails to implement a change in service as 2258
requested by the City as specified in Section 3.5. 2259
O. Failure to Complete Transition. Contractor fails to complete the tasks identified in Contractor’s 2260
Implementation Plan (Exhibit G6) as specified in Exhibit G6. 2261
P. Failure to Implement Collection Program. Contractor fails to implement a Collection program 2262
June 9, 2020 Item #10 Page 144 of 286
that complies with the requirements of Article 4 and Exhibit B, which is essential for the City to 2263
achieve compliance with SB 1383. 2264
Q. Failure to Provide Processing Capacity. Contractor fails to provide adequate Processing capacity 2265
in accordance with Section 6.1 and Exhibit E, which is essential for the City to achieve compliance 2266
with SB 1383. 2267
R. Failure to Achieve Processing Standards. Contractor fails to achieve the Processing standards 2268
specified in Section 6.1 and Exhibit E including achievement of minimum Organic Waste recovery 2269
rates, which are essential for the City to achieve SB 1383 compliance. 2270
S. Failure to Comply with Other Requirements of SB 1383. Contractor fails to comply with other 2271
requirements of the Agreement including, but not limited to, public education, reporting, 2272
contamination monitoring, recordkeeping and reporting, or other obligations of this Agreement 2273
that delegate the City’s responsibility and/or authority under SB 1383 to the Contractor. 2274
T. Failure to Perform Any Obligation. Contractor fails to perform any obligation established under 2275
this Agreement. 2276
City shall provide Contractor written notice of default within seven (7) calendar days of the City’s first 2277
knowledge of the Contractor’s default. 2278
10.2 CONTRACTOR’S RIGHT TO CURE; RIGHT TO TERMINATE UPON EVENT OF 2279 DEFAULT 2280
Contractor shall be given ten (10) Business Days from written notification by the City Contract Manager 2281
to cure any default which, in the City Contract Manager’s sole opinion, creates a potential public health 2282
and safety threat. 2283
Contractor shall be given ten (10) Business Days from written notification by the City Contract Manager 2284
to cure any default arising under subsections C, E, F, I, J, and K in Section 10.1. However, the City shall not 2285
be obligated to provide Contractor with a notice and cure opportunity if the Contractor has committed 2286
the same or similar breach/default within a twenty-four (24) month period. 2287
Contractor shall be given thirty (30) calendar days from written notification by the City Contract Manager 2288
to cure any other default (which is not required to be cured within ten (10) Business Days). However, the 2289
City shall not be obligated to provide Contractor with a notice and cure opportunity if the Contractor has 2290
committed the same or similar breach/default within a twenty-four (24) month period. 2291
10.3 CITY’S REMEDIES IN THE EVENT OF DEFAULT 2292
Upon Contractor’s default, City has the following remedies in the event of Contractor default: 2293
A. Waiver of Default. City may waive any event of default or may waive Contractor’s requirement 2294
to cure a default event if City determines that such waiver would be in the best interest of the 2295
City. City’s waiver of an event of default is not a waiver of future events of default that may have 2296
the same or similar conditions. 2297
B. Suspension of Contractor’s Obligation. City may suspend Contractor’s performance of its 2298
June 9, 2020 Item #10 Page 145 of 286
obligations if Contractor fails to cure default in the time frame specified in Section 10.2 until such 2299
time the Contractor can provide assurance of performance in accordance with Section 10.8. 2300
C. Liquidated Damages. City may assess Liquidated Damages for Contractor’s failure to meet specific 2301
performance standards pursuant to Section 10.6 and Exhibit F. 2302
D. Termination. The City Contract Manager may, in their sole discretion, set a public hearing for the 2303
City Council to determine whether to terminate this Agreement. Subject to Contractor’s right to 2304
cure as described in Section 10.2, such termination hearing must be set if a default remains 2305
uncured thirty (30) calendar days after receipt of written notice of default from the City. Such 2306
termination hearing must also be set if a Contractor’s default is not cured within ten (10) calendar 2307
days and the default: 2308
(1) creates a potential public health and safety threat; or 2309
(2) arises under Section 10.1.C, E, F, I, J, or K. 2310
If the City terminates this Agreement based on the adopted findings of the termination hearing, 2311
the City Contract Manager shall first provide written notice to the Contractor twenty (20) calendar 2312
days before the date of termination. The Contractor shall thereafter be relieved on a going-2313
forward basis of all liabilities and obligations required by this Agreement, except for Section 9.1 2314
and any other provisions specifically identified to survive termination of this Agreement. Upon 2315
expiration of the twenty-day notice, the City may, in its sole discretion: 2316
(1) directly undertake performance of the services; or 2317
(2) arrange with other Persons to perform the services with or without a written 2318
agreement; or 2319
(3) permit Contractor to continue operating under this Agreement including 2320
Contractors Compensation until such time that City is able to find substitute 2321
services. 2322
This right of termination is in addition to any other rights upon a failure of Contractor to perform 2323
its obligations under this Agreement. 2324
Contractor shall not be entitled to any further revenues from Collection operations authorized 2325
hereunder from and after the date of termination. 2326
E. Other Available Remedies. City’s election of one (1) or more remedies described herein shall not 2327
limit the City from any and all other remedies at law and in equity including injunctive relief, etc. 2328
10.4 POSSESSION OF RECORDS UPON TERMINATION 2329
In the event of termination for an event of default, the Contractor shall furnish City Contract Manager 2330
with immediate access to all of its business records, including without limitation, proprietary Contractor 2331
computer systems, related to its Customers, Collection routes, and billing of accounts for Collection 2332
services. 2333
10.5 CITY'S REMEDIES CUMULATIVE; SPECIFIC PERFORMANCE 2334
City's rights to terminate the Agreement under Section 10.2 and to take possession of the Contractor's 2335
June 9, 2020 Item #10 Page 146 of 286
records under Section 10.4 are not exclusive, and City's termination of the Agreement and/or the 2336
imposition of Liquidated Damages shall not constitute an election of remedies. Instead, these rights shall 2337
be in addition to any and all other legal and equitable rights and remedies which City may have. 2338
By virtue of the nature of this Agreement, the urgency of timely, continuous, and high quality service; the 2339
lead time required to effect alternative service; and, the rights granted by City to the Contractor, the 2340
remedy of damages for a breach hereof by Contractor is inadequate and City shall be entitled to injunctive 2341
relief (including but not limited to specific performance). 2342
10.6 PERFORMANCE STANDARDS AND LIQUIDATED DAMAGES 2343
A. General. The Parties find that as of the time of the execution of this Agreement, it is impractical, 2344
if not impossible, to reasonably ascertain the extent of damages which shall be incurred by City 2345
as a result of a breach by Contractor of its obligations under this Agreement. The factors relating 2346
to the impracticability of ascertaining damages include, but are not limited to, the fact that: (i) 2347
substantial damage results to members of the public who are denied services or denied quality or 2348
reliable service; (ii) such breaches cause inconvenience, anxiety, frustration, and deprivation of 2349
the benefits of the Agreement to individual members of the general public for whose benefit this 2350
Agreement exists, in subjective ways and in varying degrees of intensity which are incapable of 2351
measurement in precise monetary terms; (iii) that exclusive services might be available at 2352
substantially lower costs than alternative services and the monetary loss resulting from denial of 2353
services or denial of quality or reliable services is impossible to calculate in precise monetary 2354
terms; and, (iv) the termination of this Agreement for such breaches, and other remedies are, at 2355
best, a means of future correction and not remedies which make the public whole for past 2356
breaches. 2357
B. Service Performance Standards; Liquidated Damages for Failure to Meet Standards. The Parties 2358
further acknowledge that consistent, reliable Collection services are of utmost importance to City 2359
and that City has considered and relied on Contractor's representations regarding its quality of 2360
service commitment in awarding the Agreement to it. The Parties recognize that some quantified 2361
standards of performance are necessary and appropriate to ensure consistent and reliable service 2362
and performance. The Parties further recognize that if Contractor fails to achieve the performance 2363
standards, or fails to submit required documents in a timely manner, City and its residents and 2364
businesses will suffer damages, and that it is, and will be, impractical and extremely difficult to 2365
ascertain and determine the exact amount of damages which City will suffer. Therefore, without 2366
prejudice to City’s right to treat such non-performance as an event of default under this Section, 2367
the Parties agree that the Liquidated Damages amounts established in Exhibit F of this Agreement 2368
and the Liquidated Damage amounts therein represent a reasonable estimate of the amount of 2369
such damages considering all of the circumstances existing on the Effective Date of this 2370
Agreement, including the relationship of the sums to the range of harm to City that reasonably 2371
could be anticipated and the anticipation that proof of actual damages would be costly or 2372
impractical. 2373
Contractor agrees to pay (as Liquidated Damages and not as a penalty) the amounts set forth in 2374
the Performance Standards and Liquidated Damages, Exhibit F. 2375
Before assessing Liquidated Damages, City Contract Manager shall give Contractor notice of City’s 2376
intention to do so. The notice will include a brief description of the incident(s) and non-2377
June 9, 2020 Item #10 Page 147 of 286
performance. City Contract Manager may review (and make copies at City’s own expense) all 2378
information in the possession of Contractor relating to incident(s) and/or non-performance. City 2379
Contract Manager may, within ten (10) Business Days after issuing the notice, request a meeting 2380
with Contractor. City Contract Manager may present evidence of non-performance in writing and 2381
through testimony of City’s employees and others relevant to the incident(s) and non-2382
performance. City Contract Manager will provide Contractor with a written explanation of their 2383
determination on each incident(s) and non-performance prior to authorizing the assessment of 2384
Liquidated Damages under this Section 10.6. The decision of City Contract Manager shall be final 2385
and Contractor shall not be subject to, or required to exhaust, any further administrative 2386
remedies. 2387
C. Amount. City Contract Manager may assess Liquidated Damages for each calendar day or event, 2388
as appropriate, that Contractor is determined to be liable in accordance with this Agreement in 2389
the amounts specified in Exhibit F subject to annual adjustment described below. 2390
D. Timing of Payment. Contractor shall pay any Liquidated Damages assessed by City Contract 2391
Manager within ten (10) Business Days of the date the Liquidated Damages are assessed. If they 2392
are not paid within the ten (10) Business Day period, City Contract Manager may proceed against 2393
the performance bond required by the Agreement, order the termination (subject to the 2394
provisions of Section 10.2) of the rights granted by this Agreement, or all of the above. 2395
10.7 EXCUSE FROM PERFORMANCE 2396
The Parties understand and agree herein that the services provided under this Agreement are critical to 2397
the protection of public health and safety and that Contractor is expected to perform these services 2398
despite the occurrence of events that may otherwise give rise to Force Majeure conditions. The Parties 2399
herein agree that the obligations for excuse from performance under this Agreement should and do have 2400
a higher standard than the general law understanding of Force Majeure. In particular, a Party shall be 2401
excused from performing their obligations hereunder and from any obligation to pay Liquidated Damages 2402
if they are prevented from so performing by reason of floods, earthquakes, other acts of nature, war, civil 2403
insurrection, riots, acts of any domestic government (including judicial action), and other similar 2404
catastrophic events which are beyond the control of and not the fault of the Party claiming excuse from 2405
performance hereunder. However, performance shall only be excused If the party requesting relief from 2406
performance can specifically demonstrate that the performance of a specific obligation is impossible and 2407
shall only be excused from those requirements which are demonstrated to be impossible. All other 2408
performance obligations that remain possible, shall be required to continue. 2409
In the case of labor unrest or job action directed at a third party over whom Contractor has no control, 2410
the inability of Contractor to provide services in accordance with this Agreement due to the unwillingness 2411
or failure of the third party to: (i) provide reasonable assurance of the safety of Contractor's employees 2412
while providing such services; or, (ii) make reasonable accommodations with respect to Container 2413
placement and point of Delivery, time of Collection, or other operating circumstances to minimize any 2414
confrontation with pickets or the number of Persons necessary to make Collections shall, to that limited 2415
extent, excuse performance. The foregoing excuse shall be conditioned on Contractor's cooperation in 2416
performing Collection services at different times and in different locations. Further, in the event of labor 2417
unrest, including but not limited to strike, work stoppage or slowdown, sickout, picketing, or other 2418
concerted job action conducted by the Contractor’s employees or directed at the Contractor, or a 2419
subsidiary, the Contractor shall not be excused from performance. In such case, Contractor shall continue 2420
June 9, 2020 Item #10 Page 148 of 286
to provide a reasonably satisfactory level of performance during the pendency thereof, but the Contractor 2421
shall not be required to adhere strictly to the specific requirements of this Agreement regarding routes, 2422
Collection times or similar matters; provided, however, that in no event shall more than seven (7) calendar 2423
days elapse between pickups for Residential and Commercial Customers. Any labor action initiated by 2424
Contractor, including but not limited to a lock-out, shall not be grounds for any excuse from performance 2425
and Contractor shall perform all obligations under this Agreement during the pendency of such 2426
Contractor-initiated labor action. 2427
The Party claiming excuse from performance shall, within two (2) calendar days after such Party has notice 2428
of such cause, give the other Party notice of the facts constituting such cause and asserting its claim to 2429
excuse under this Section. 2430
If either Party validly exercises its rights under this Section, the Parties hereby waive any claim against 2431
each other for any damages sustained thereby. 2432
The partial or complete interruption or discontinuance of Contractor's services caused by one (1) or more 2433
of the events described in this Article shall not constitute a default by Contractor under this Agreement. 2434
Notwithstanding the foregoing, however, if Contractor is excused from performing its obligations 2435
hereunder for any of the causes listed in this Section for a period of thirty (30) calendar days or more, City 2436
shall nevertheless have the right, in its sole discretion, to terminate this Agreement by giving ten (10) 2437
Business Days’ notice to Contractor, in which case the provisions of Section 10.4 shall apply. 2438
10.8 RIGHT TO DEMAND ASSURANCES OF PERFORMANCE 2439
The Parties acknowledge that it is of the utmost importance to City and the health and safety of all those 2440
members of the public residing or doing business within City who will be adversely affected by interrupted 2441
waste management service, that there be no material interruption in services provided under this 2442
Agreement. 2443
If Contractor: (i) is the subject of any labor unrest including work stoppage or slowdown, sick-out, 2444
picketing or other concerted job action; (ii) appears in the reasonable judgment of City to be unable to 2445
regularly pay its bills as they become due; or, (iii) is the subject of a civil or criminal judgment or order 2446
entered by a Federal, State, regional or local agency for violation of an Applicable Law, and City believes 2447
in good faith that Contractor’s ability to perform under the Agreement has thereby been placed in 2448
substantial jeopardy, City may, at its sole option and in addition to all other remedies it may have, demand 2449
from Contractor reasonable assurances of timely and proper performance of this Agreement, in such form 2450
and substance as City believes in good faith is reasonably necessary in the circumstances to evidence 2451
continued ability to perform under the Agreement. If Contractor fails or refuses to provide satisfactory 2452
assurances of timely and proper performance in the form and by the date required by City, such failure or 2453
refusal shall be an event of default for purposes of Section 10.1. 2454
10.9 DISPUTE RESOLUTION 2455
In the event of dispute between the City Contract Manager and the Contractor regarding the 2456
interpretation of or the performance of services under this Agreement which results in a material impact 2457
to the Contractor’s revenue and/or cost of operations, as defined in Section 5.9, the provisions of Section 2458
10.9 shall apply. 2459
A. Meet and Confer. In the event of disputes regarding the performance of any obligation under this 2460
June 9, 2020 Item #10 Page 149 of 286
Agreement which results in a material impact to the Contractor’s revenue and/or cost of 2461
operations, the City and Contractor agree that they promptly will meet and confer to attempt to 2462
resolve the matter between themselves. 2463
B. Mediation. If disputes which arise under this Agreement cannot be resolved satisfactorily 2464
between the Parties in accordance with Section 10.9.A, the City and Contractor agree that such 2465
disputes shall be submitted to mandatory, non-binding mediation by a mutually agreed upon 2466
independent third party. 2467
C. Period of Time. Insofar as allowed by Applicable Law, the period otherwise applicable for filing 2468
claims against the City under Applicable Law shall be tolled during the period of time for which 2469
meet and confer or mediation procedures are pending, in accordance with Sections 10.9.A and 2470
10.9.B. 2471
D. Litigation. Litigation may be commenced only after all reasonable efforts to resolve the dispute(s) 2472
pursuant to Sections 10.9.A, 10.9.B, and 10.9.C have failed and any necessary claim(s) have been 2473
denied. 2474
ARTICLE 11. 2475
REPRESENTATIONS AND WARRANTIES OF 2476 THE PARTIES 2477
The Parties, by acceptance of this Agreement, represents and warrants the conditions presented in this 2478
Article. 2479
11.1 CONTRACTOR’S CORPORATE STATUS 2480
Contractor is a corporation duly organized, validly existing and in good standing under the laws of the 2481
State. It is qualified to transact business in the State and has the power to own its properties and to carry 2482
on its business as now owned and operated and as required by this Agreement. 2483
11.2 CONTRACTOR’S CORPORATE AUTHORIZATION 2484
Contractor has the authority to enter this Agreement and perform its obligations under this Agreement. 2485
The Board of Directors of Contractor (or the shareholders, if necessary) has taken all actions required by 2486
law, its articles of incorporation, its bylaws, or otherwise, to authorize the execution of this Agreement. 2487
The Person signing this Agreement on behalf of Contractor represents and warrants that they have 2488
authority to do so. This Agreement constitutes the legal, valid, and binding obligation of the Contractor. 2489
11.3 AGREEMENT WILL NOT CAUSE BREACH 2490
To the best of Contractor’s and City’s knowledge after reasonable investigation, the execution or delivery 2491
of this Agreement or the performance by either Party of their obligations hereunder does not conflict 2492
with, violate, or result in a breach: (i) of any Applicable Law; or, (ii) any term or condition of any judgment, 2493
order, or decree of any court, administrative agency or other governmental authority, or any agreement 2494
or instrument to which Contractor or City is a party or by which Contractor or any of its properties or 2495
assets are bound, or constitutes a default hereunder. 2496
June 9, 2020 Item #10 Page 150 of 286
11.4 NO LITIGATION 2497
To the best of Contractor’s and City’s knowledge after reasonable investigation, there is no action, suit, 2498
proceeding or investigation, at law or in equity, before or by any court or governmental authority, 2499
commission, board, agency or instrumentality decided, pending or threatened against either Party 2500
wherein an unfavorable decision, ruling or finding, in any single case or in the aggregate, would: 2501
A.Materially adversely affect the performance by Party of its obligations hereunder; 2502
B.Adversely affect the validity or enforceability of this Agreement; or, 2503
C.Have a material adverse effect on the financial condition of Contractor, or any surety or entity 2504
guaranteeing Contractor's performance under this Agreement. 2505
11.5 NO ADVERSE JUDICIAL DECISIONS 2506
To the best of Contractor’s and City’s knowledge after reasonable investigation, there is no judicial 2507
decision that would prohibit this Agreement or subject this Agreement to legal challenge. 2508
11.6 NO LEGAL PROHIBITION 2509
To the best of each Party’s knowledge, after reasonable investigation, there is no Applicable Law in effect 2510
on the date that Party signed this Agreement that would prohibit the performance of either their 2511
obligations under this Agreement and the transactions contemplated hereby. 2512
11.7 CONTRACTOR’S ABILITY TO PERFORM 2513
Contractor possesses the business, professional, and technical expertise to perform all services, 2514
obligations, and duties as described in and required by this Agreement including all Exhibits thereto. 2515
Contractor possesses the ability to secure equipment, facility, and employee resources required to 2516
perform its obligations under this Agreement. 2517
ARTICLE 12. 2518 OTHER AGREEMENTS OF THE PARTIES 2519
12.1 RELATIONSHIP OF PARTIES 2520
The Parties intend that Contractor shall perform the services required by this Agreement as an 2521
independent Contractor engaged by City and neither as an officer nor employee of City, nor as a partner 2522
or agent of, or joint venture with, City. No employee or agent of Contractor shall be, or shall be deemed 2523
to be, an employee or agent of City. Contractor shall have the exclusive control over the manner and 2524
means of performing services under this Agreement, except as expressly provided herein. Contractor shall 2525
be solely responsible for the acts and omissions of its officers, employees, Subcontractors and agents. 2526
Neither Contractor nor its officers, employees, Subcontractors, and agents shall obtain any rights to 2527
retirement benefits, workers’ compensation benefits, or any other benefits which accrue to City 2528
employees by virtue of their employment with City. 2529
June 9, 2020 Item #10 Page 151 of 286
12.2 COMPLIANCE WITH LAW 2530
Contractor shall at all times, at its sole cost, comply with all Applicable Laws, permits and licenses of the 2531
United States, the State, County, and City and with all applicable regulations promulgated by Federal, 2532
State, regional or local administrative and regulatory agencies, now in force and as they may be enacted, 2533
issued or amended during the Term. 2534
12.3 GOVERNING LAW 2535
This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the 2536
State. 2537
12.4 JURISDICTION 2538
Any lawsuits, at law or in equity, between the Parties arising out of this Agreement shall be filed in a court 2539
of competent jurisdiction in the County. With respect to venue, the Parties agree that this Agreement is 2540
made in and will be performed in the County. The Parties waive all provisions of law providing for a change 2541
of venue in these proceedings to any other county. 2542
12.5 BINDING ON SUCCESSORS 2543
The provisions of this Agreement shall inure to the benefit to and be binding on the successors and 2544
permitted assigns of the Parties. 2545
12.6 ASSIGNMENT 2546
Neither Party shall assign its rights nor delegate or otherwise transfer its obligations under this Agreement 2547
to any other Person without the prior written consent of the other Party. Any such assignment made 2548
without the consent of the other Party shall be void and the attempted assignment shall constitute a 2549
material breach of this Agreement. 2550
For purposes of this Section, “assignment” shall include, but not be limited to: (i) a sale, exchange or other 2551
transfer of substantially all of Contractor's local, regional, and/or corporate assets dedicated to service 2552
under this Agreement to a third party; (ii) a sale, exchange or other transfer of ten (10) percent or more 2553
of the local, regional, and/or corporate assets, stock, or ownership of Contractor to a Person (other than 2554
a transfer of shares in Contractor by the owner of such shares to a revocable trust for the benefit of his 2555
family or to another owner of shares in Contractor) except that no cumulative sale, exchange, or transfer 2556
of shares may exceed twenty (20) percent during the Term of the Agreement (other than a transfer of 2557
shares in Contractor by the owner of such shares to a revocable trust for the benefit of his family or to 2558
another owner of shares in Contractor); (iii) any reorganization, consolidation, merger, recapitalization, 2559
stock issuance or re-issuance, voting trust, pooling agreement, escrow arrangement, liquidation or other 2560
transaction to which Contractor or any of its shareholders is a party which results in a change of ownership 2561
or control of ten (10) percent or more of the value or voting rights in the local, regional, and/or corporate 2562
stock of Contractor; (iv) divestiture of an Affiliate (e.g., trucking company, materials recovery facility, 2563
transfer station, etc.) used by Contractor to fulfill its obligations under this Agreement; and, (v) any 2564
combination of the foregoing (whether or not in related or contemporaneous transactions) which has the 2565
effect of any such transfer or change of local, regional, and/or corporate ownership and/or control of 2566
Contractor. For purposes of this Section, the term ”proposed assignee” shall refer to the proposed 2567
transferee(s) or other successor(s) in interest pursuant to the assignment. 2568
June 9, 2020 Item #10 Page 152 of 286
Contractor acknowledges that this Agreement involves rendering a vital service to City's residents and 2569
businesses, and that City has selected Contractor to perform the services specified herein based on: (i) 2570
Contractor's experience, skill, and reputation for conducting its Recyclable Materials, Organic Materials, 2571
and Solid Waste management operations in a safe, effective, and responsible fashion, at all times in 2572
keeping with applicable waste management laws, regulations, and good waste management practices; 2573
and, (ii) Contractor's financial resources on a local, regional, and/or corporate level to maintain the 2574
required equipment and to support its indemnity obligations to City under this Agreement. City has relied 2575
on each of these factors, among others, in choosing Contractor to perform the services to be rendered by 2576
Contractor under this Agreement. 2577
If Contractor requests City’s consideration of and consent to an assignment, City may deny or approve 2578
such request in its sole discretion at a regularly scheduled meeting of the City Council. No request by 2579
Contractor for consent to an assignment need be considered by City unless and until Contractor has met 2580
requirements A – E below. The City may, in its sole discretion, waive one (1) or more of the following 2581
requirements: 2582
A.On the date the Contractor submits a written request for the City’s written consent of an 2583
assignment, Contractor shall pay the City a transfer fee in the amount of one (1) percent of the 2584
Gross Receipts for the most-recently completed Rate Period. 2585
B.Contractor shall pay City its actual expenses for attorneys’, consultants’, accountants’ fees, staff 2586
time, and investigation costs necessary to investigate the suitability of any proposed assignee, 2587
and to review and finalize any document required as a condition for approving any such 2588
assignment. Such payment shall be required regardless of the ultimate determination of the City 2589
regarding the approval or denial of the assignment. Upon submittal of Contractor’s request for 2590
assignment to City, Contractor shall submit an initial deposit of one hundred thousand dollars 2591
($100,000) for this purpose. 2592
C.Contractor shall furnish City with reviewed financial statements of the proposed assignee's 2593
operations for the immediately preceding three (3) operating years. 2594
D.Contractor shall furnish City with satisfactory proof: (i) that the proposed assignee has at least ten 2595
(10) years of Recyclable Materials, Organic Materials, and Solid Waste management experience2596
on a scale equal to or exceeding the scale of operations conducted by Contractor under this2597
Agreement; (ii) that in the last five (5) years, the proposed assignee has not suffered any citations2598
or other censure from any Federal, State or local contractor having jurisdiction over its waste2599
management operations due to any significant failure to comply with State, Federal or local waste 2600
management laws and that the assignee has provided the City with a complete list of such2601
citations and censures; (iii) that the proposed assignee has at all times conducted its operations2602
in an environmentally safe and conscientious fashion; (iv) that the proposed assignee conducts its2603
operations and management practices in accordance with sound waste management practices in2604
full compliance with all Federal, State, and local laws regulating the Collection, Transportation,2605
Processing and Disposal of Recyclable Materials, Organic Materials, and Solid Waste including2606
Hazardous Waste; and, (v) that any other information required by City demonstrates that the2607
proposed assignee can fulfill the terms of this Agreement in a timely, safe and effective manner.2608
E.Contractor shall provide the City with any and all additional records or documentation which, in 2609
the City Contract Manager’s sole determination, would facilitate the City’s review of the proposed 2610
June 9, 2020 Item #10 Page 153 of 286
assignment. 2611
Under no circumstances shall any proposed assignment be considered by City if Contractor is in default at 2612
any time during the period of consideration. If, in the City Contract Manager’s sole determination, there 2613
is any doubt regarding the compliance of the Contractor with the Agreement, City Contract Manager may 2614
require an audit of the Contractor’s compliance and the costs of such audit shall be paid by Contractor in 2615
advance of the performance of said audit. 2616
12.7 NO THIRD PARTY BENEFICIARIES 2617
This Agreement is not intended to, and will not be construed to, create any right on the part of any third 2618
party to bring an action to enforce any of its terms. 2619
12.8 WAIVER 2620
The waiver by either Party of any breach or violation of any provisions of this Agreement shall not be 2621
deemed to be a waiver of any breach or violation of any other provision nor of any subsequent breach of 2622
violation of the same or any other provision. The subsequent acceptance by either Party of any monies 2623
which become due hereunder shall not be deemed to be a waiver of any pre-existing or concurrent breach 2624
or violation by the other Party of any provision of this Agreement. 2625
12.9 NOTICE PROCEDURES 2626
All notices, demands, requests, proposals, approvals, consents, and other communications, which this 2627
Agreement requires, authorizes or contemplates, shall be in writing and shall either be personally 2628
delivered to a representative of the Parties at the address below or deposited in the United States mail, 2629
first class postage prepaid, addressed as follows: 2630
If to City: 2631
City of Carlsbad 2632
Attn: City Manager 2633
1200 Carlsbad Village Drive 2634
Carlsbad, CA 92008 2635
City of Carlsbad 2636
Attn: Deputy City Manager, Public Works 2637
1635 Faraday Avenue 2638
Carlsbad, CA 92008 2639
City of Carlsbad 2640
Attn: Environmental Manager, Public Works 2641
1635 Faraday Ave 2642
Carlsbad, CA 92008 2643
With a copy to: 2644
City of Carlsbad 2645
Attn: City Attorney 2646
June 9, 2020 Item #10 Page 154 of 286
1200 Carlsbad Village Drive 2647
Carlsbad, CA 92008 2648
If to Contractor: 2649
____________________ 2650
____________________ 2651
____________________ 2652
____________________ 2653
The address to which communications may be delivered may be changed from time to time by a notice 2654
given in accordance with this Section. Notice shall be deemed given on the day it is personally delivered 2655
or, if mailed, three (3) calendar days from the date it is deposited in the mail. Either Party may choose to 2656
provide email notification to the other Party that notice has been deposited in the mail, however such 2657
email notification shall not constitute official notice. 2658
12.10 REPRESENTATIVES OF THE PARTIES 2659
References in this Agreement to the “City” shall mean the City’s elected body and all actions to be taken 2660
by City except as otherwise provided in this Section 12.10. Each reference to an act performed by, or 2661
obligation of the City Contract Manager in this Agreement is itself a delegation of authority from the City. 2662
The City may delegate, in writing, further authority to the City Contract Manager and/or to other City 2663
officials and may permit such officials, in turn, to delegate in writing some or all of such authority to 2664
subordinate officers. The Contractor may rely upon actions taken by such delegates if they are within the 2665
scope of the authority properly delegated to them. 2666
The Contractor shall, by the Effective Date, designate in writing a responsible officer who shall serve as 2667
the representative of the Contractor in all matters related to the Agreement and shall inform City in 2668
writing of such designation and of any limitations upon his or her authority to bind the Contractor. City 2669
may rely upon action taken by such designated representative as actions of the Contractor unless they 2670
are outside the scope of the authority delegated to him/her by the Contractor as communicated to City. 2671
ARTICLE 13. 2672 MISCELLANEOUS AGREEMENTS 2673
13.1 ENTIRE AGREEMENT 2674
This Agreement is the entire agreement between the Parties with respect to the subject matter hereof 2675
and supersedes all prior and contemporaneous oral and written agreements and discussions. Each Party 2676
has cooperated in the drafting and preparation of this Agreement and this Agreement shall not be 2677
construed against any Party on the basis of drafting. This Agreement may be amended only by an 2678
agreement in writing, signed by each of the Parties hereto. 2679
13.2 SECTION HEADINGS 2680
The article headings and section headings in this Agreement are for convenience of reference only and 2681
are not intended to be used in the construction of this Agreement nor to alter or affect any of its 2682
provisions. 2683
June 9, 2020 Item #10 Page 155 of 286
13.3 REFERENCES TO LAWS 2684
All references in this Agreement to laws and regulations shall be understood to include such laws as they 2685
may be subsequently amended or recodified, unless otherwise specifically provided herein. 2686
13.4 AMENDMENTS 2687
This Agreement may not be modified or amended in any respect except in writing signed by the Parties. 2688
13.5 SEVERABILITY 2689
If any non-material provision of this Agreement is for any reason deemed to be invalid and unenforceable, 2690
the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this 2691
Agreement, which shall be enforced as if such invalid or unenforceable provision had not been contained 2692
herein. 2693
13.6 COUNTERPARTS 2694
This Agreement may be executed in counterparts, each of which shall be considered an original. 2695
13.7 EXHIBITS 2696
Each of the Exhibits identified as Exhibit “A” through “I” is attached hereto and incorporated herein and 2697
made a part hereof by this reference. Except as described in Section 8.1 related to Exhibit G3, in the event 2698
of a conflict between the terms of this Agreement and the terms of an Exhibit, the terms of this Agreement 2699
shall control. In the event of a conflict between Exhibit G1 and any other Exhibit(s), such other Exhibit(s) 2700
shall control. 2701
2702
June 9, 2020 Item #10 Page 156 of 286
IN WITNESS WHEREOF, this Agreement is entered by the Parties hereto in San Diego County, California on 2703
the day and year first above written. 2704
City of Carlsbad
A Municipal Corporation “CITY”
“CONTRACTOR”
________ Date
Mayor
Signature Date
Print Name of Signatory
________ Date
City Manager
Title of Signatory
The Foregoing Agreement Has been
Reviewed and Approval Is Recommended:
Signature Date
________ Date
Director, Public Works
Print Name of Signatory
Title of Signatory
APPROVED AS TO FORM:
________ Date
City Attorney
__City___ Business License #
Resolution Number XXXX-XXX
ATTEST: Approved by City Council
________ Date
City Clerk
2705
June 9, 2020 Item #10 Page 157 of 286
DRAFT FRANCHISE EXHIBITS
EXHIBIT A:
DEFINITIONS
June 9, 2020 Item #10 Page 158 of 286
For purposes of this Agreement, unless a different meaning is clearly required, the following words and
phrases shall have the following meanings respectively ascribed to them by this Exhibit and shall be
capitalized throughout this Agreement:
“Abandoned Waste” means Recyclable Materials, Organic Materials, Solid Waste, C&D, Excluded Waste,
Bulky Items, or other materials which have been abandoned, littered, or illegally dumped in the public
right of way or on public or City property.
“AB 1826” means the Organic Waste Recycling Act of 2014 (Chapter 727, Statutes of 2014 modifying
Division 30 of the California Public Resources Code), also commonly referred to as "AB 1826," as amended,
supplemented, superseded, and replaced from time to time.
“AB 341” means the California Jobs and Recycling Act of 2011 (Chapter 476, Statues of 2011 [Chesbro, AB
341]), also commonly referred to as “AB 341”, as amended, supplemented, superseded, and replaced
from time to time.
“AB 939” means the California Integrated Waste Management Act of 1989 (Division 30 of the California
Public Resources Code), also commonly referred to as "AB 939," as amended, supplemented, superseded,
and replaced from time to time.
“Agreement” means this Agreement between City and Contractor, including all exhibits, and any future
amendments hereto.
“Alternative Daily Cover” or “ADC” has the same meaning as in Section 20690 of Title 27 of the California
Code of Regulations.
“Alternative Intermediate Cover” or “AIC” has the same meaning as in Section 20700 of Title 27 of the
California Code of Regulations.
“Applicable Law” means all Federal, State, County, and local laws, regulations, rules, orders, judgments,
degrees, permits, approvals, or other requirement of any governmental agency having jurisdiction over
the Collection, Transportation, and Processing of Recyclable Materials, Organic Materials, and Solid Waste
that are in force on the Effective Date and as may be enacted, issued or amended during the Term of this
Agreement. Applicable Law includes, but is in no way limited to, AB 939, AB 341, AB 1826, and SB 1383.
“Approved Facility(ies)” means any one of or any combination of the: Approved Recyclable Materials
Processing Facility; Approved Organic Materials Processing Facility; Designated Organic Materials
Processing Facility; Designated Transfer Facility; Approved Reusable Materials Processing Facility; and/or
Designated Disposal Facility.
“Approved Processing Facility(ies)” means any one of or any combination of the: Approved Recyclable
Materials Processing Facility; Approved Organic Materials Processing Facility; Designated Organic
June 9, 2020 Item #10 Page 159 of 286
Materials Processing Facility; Designated Transfer Facility; or, Approved Reusable Materials Processing
Facility.
“Approved Organic Materials Processing Facility” means the _____________ facility, which is owned and
operated by _________.
{Note to proposers: This draft agreement includes a definition for both “Approved Organic Materials
Processing Facility” and “Designated Organic Materials Processing Facility.” The City may direct the
Contractor to use a Facility selected by the City at a later date during the term of the agreement.}
“Approved Recyclable Materials Processing Facility” means the __________________ facility, which is
owned and operated by ___________.
“Approved Reusable Materials Processing Facility” means the _______________ facility, which is owned
and operated by ___________.
“Bin” means a Container with capacity of approximately one (1) to eight (8) cubic yards, with a hinged lid,
and with wheels (where appropriate), that is serviced by a front end-loading Collection vehicle, including
Bins with Compactors attached to increase the capacity of the Bin.
"Bulky Item" means discarded Appliances (including refrigerators), furniture, tires, carpets, mattresses,
E-Waste, bundled and tied Yard Trimmings and/or wood waste, and similar large items which can be
handled by two (2) people, weigh no more than two hundred (200) pounds, and require special Collection
due to their size or nature, but can be Collected without the assistance of special loading equipment (such
as forklifts or cranes) and without violating vehicle load limits. Bulky Items must be generated by the
Customer and at the service address wherein the Bulky Items are Collected. Bulky Items do not include
abandoned automobiles, large auto parts, trees, Construction and Demolition Debris, or items herein
defined as Excluded Waste.
“Business Days” mean days during which the City offices are open to do business with the public.
“California Code of Regulations (CCR)” means the State of California Code of Regulations. CCR references
in this Agreement are preceded with a number that refers to the relevant Title of the CCR (e.g., “14 CCR”
refers to Title 14 of CCR).
“CalRecycle” means California's Department of Resources Recycling and Recovery.
“Cardboard” means corrugated fiberboard consisting of a fluted corrugated sheet and one or two flat
linerboards, as is often used in the manufacture of shipping containers and corrugated boxes. Cardboard
is a subset of Recyclable Materials.
“Cart” means a plastic Container with a hinged lid and wheels that is serviced by an automated or semi-
automated Collection vehicle. A Cart has capacity of 20, 35, 64 or 96 gallons (or similar volumes).
June 9, 2020 Item #10 Page 160 of 286
“City” means the City of Carlsbad, a municipal corporation, and all the territory lying within its boundaries
as presently existing or as such boundaries may be modified during the term of this Agreement.
“City Council” means the duly elected representative council, or its successor municipal governing body,
of the City.
“City Contract Manager” means City’s Environmental Services Manager, who is responsible for the
administrative management of this Agreement, or their designee.
“City Fees” means all fees payable to the City, identified and referenced in Article 7 of this Agreement.
“Change in Law” means any of the following events or conditions that has a material and adverse effect
on the performance by the Parties of their respective obligations under this Agreement (except for
payment obligations):
a. The enactment, adoption, promulgation, issuance, modification, or written change in
administrative or judicial interpretation of any Applicable Law on or after the Effective Date;
or,
b. The order or judgment of any governmental body, on or after the Effective Date, to the extent
such order or judgment is not the result of willful or negligent action, error or omission or lack
of reasonable diligence of City or of the Contractor, whichever is asserting the occurrence of
a Change in Law; provided, however, that the contesting in good faith or the failure in good
faith to contest any such order or judgment shall not constitute or be construed as such a
willful or negligent action, error or omission or lack of reasonable diligence.
“Collect” or “Collection” (or any variation thereof) means the act of taking possession of Recyclable
Materials, Organic Materials, Solid Waste, Bulky Items, and other material at the place of generation in
City.
“Commencement Date” means the date specified in Section 2.1 when Collection, Transportation, and
Processing services required by this Agreement shall be provided.
“Commercial” shall mean of, from or pertaining to non-Residential Premises where business activity is
conducted, including, but not limited to, retail sales, services, wholesale operations, manufacturing, and
industrial operations, but excluding businesses conducted upon Residential property which are permitted
under applicable zoning regulations and are not the primary use of the property.
“Commercial Edible Food Generator” includes Tier One Commercial Edible Food Generators and Tier Two
Commercial Edible Food Generators, or as otherwise defined in 14 CCR Section 18982(a)(7). For the
purposes of this definition, Food Recovery Organizations and Food Recovery Services are not Commercial
Edible Food Generators, or as otherwise specified by 14 CCR Section 18982(a)(7).
June 9, 2020 Item #10 Page 161 of 286
“Community Composting” means any activity that composts green material, agricultural material, food
material, and vegetative food material, alone or in combination, and the total amount of feedstock and
Compost on-site at any one time does not exceed 100 cubic yards and 750 square feet, as specified in 14
CCR Section 6 17855(a)(4); or as otherwise defined in 14 CCR Section 18982(a)(8).
“Compostable Plastics” or “Compostable Plastic” means plastic materials that meet the ASTM D6400
standard for compostability.
“Compactor” means a mechanical apparatus that compresses materials together with the Container that
holds the compressed materials or the Container that holds the compressed materials if it is detached
from the mechanical compaction apparatus. Compactors include two (2) to eight (8) cubic yard Bin
Compactors serviced by front-end loader Collection vehicles and ten (10) to fifty (50) cubic yard Drop Box
Compactors serviced by roll-off Collection vehicles.
“Complaint” shall mean each written or orally communicated statement made by any Person, whether to
City or Contractor, alleging: (1) non-performance, or deficiencies in Contractor’s performance, of its duties
under this Agreement; (2) a violation by Contractor of this Agreement; or, (3) an SB 1383 Non-Compliance
Complaint.
“Composting” or “Compost” (or any variation thereof) includes a controlled biological decomposition of
Organic Materials yielding a safe and nuisance free compost product.
“Construction and Demolition Debris (C&D)” includes discarded building materials, packaging, debris,
and rubble resulting from construction, alteration, remodeling, repair or demolition operations on any
pavements, excavation projects, houses, Commercial buildings, or other structures, excluding Excluded
Waste. Construction and Demolition Debris includes rocks, soils, tree remains and other Yard Trimmings
which results from land clearing or land development operations in preparation for construction.
“Container(s)” mean Bins, Carts, Compactors, and Drop Boxes.
“Contractor” means _____________, organized and operating under the laws of the State and its officers,
directors, employees, agents, companies, related-parties, affiliates, subsidiaries, and Subcontractors.
{Note to Proposers: Please insert the legal name of your company in the space provided. This should
match the name provided on page one (1) of the Franchise Agreement.}
“Contractor’s Compensation” means the monetary compensation received by Contractor in return for
providing services in accordance with this Agreement as described in Article 8.
“Contractor’s Proposal” means the proposal submitted to City by Contractor on __________, 20__ for
provision of Recyclable Materials, Organic Materials, and Solid Waste Collection and Processing services
and certain supplemental written materials, which are included as Exhibit G to this Agreement and are
incorporated by reference.
June 9, 2020 Item #10 Page 162 of 286
“County” means the County of San Diego, a political subdivision of the State of California.
“Curb” or “Curbside” (or any variation thereof) means the cornered edging between the street and
sidewalk. Curb or Curbside also means and describes the location of a Collection Container for pick-up,
where such Container is placed on the street or alley against the face of the Curb, or where no Curb exists,
the Container is placed not more than five (5) feet from the outside edge of the street or alley nearest the
property’s entrance.
“Curb Mile” means a linear measurement of five thousand two hundred and eighty (5,280) feet of Curb
or pavement edge to be used as standard unit of scheduled street sweeping service. The Curb of a median
will also be considered when calculating total Curb Miles. As an example a one-mile section of street with
a median running the entire length would constitute four (4) total Curb Miles: one (1) for each side of the
street, and one (1) for each side of the median.
“Customer” means the Person whom Contractor submits its billing invoice to and collects payment from
for Collection services provided to a Premises. The Customer may be either the Occupant or Owner of the
Premises.
“Customer Account Information Database” means the Customer Account Information Database as
identified in Section 4.8 that shall be developed, maintained, and monitored in accordance with the
requirements of this Agreement.
“Customer Type” means the Customer’s sector category including, but not limited to, Single-Family,
Multi-Family, Commercial, Drop Box, and City.
“Designated Disposal Facility” means the landfill, selected by the operator of the Designated Transfer
Facility, where Solid Waste Collected under this Agreement is sent for final Disposal.
“Designated Organic Materials Processing Facility” means the _____________ facility, at {insert address}
which is owned and operated by _________. The Designated Organic Materials Processing Facility shall
serve as the Processing site for all Organic Materials Collected by Contractor.
{Note to proposers: This draft agreement includes a definition for both “Approved Organic Materials
Processing Facility” and “Designated Organic Materials Processing Facility.” The City may direct the
Contractor to use a Facility selected by the City during the term of the Agreement.}
“Designated Transfer Facility” means the Palomar Transfer Station (PTS), at 5960 El Camino Real,
Carlsbad, CA, which is owned by the County and operated by Republic Services. The Designated Transfer
Facility shall serve as the Transfer site for all Solid Waste and Organic Materials Collected by Contractor.
{Note to Proposers: This may be adjusted to reflect the final decision on organics processing.}
“Designated Waste” means non-Hazardous Waste which may pose special Disposal problems because of
its potential to contaminate the environment and which may be Disposed of only in Class II Disposal sites
June 9, 2020 Item #10 Page 163 of 286
or Class III Disposal sites pursuant to a variance issued by the California Department of Health Services.
Designated Waste consists of those substances classified as Designated Waste by the State, in California
Code of Regulations Title 23, Section 2522 as may be amended from time to time.
“Divert” or “Diversion” (or any variation thereof) means to prevent Discarded Materials from Disposal at
landfill or transformation facilities, (including facilities using incineration, pyrolysis, distillation,
gasification, or biological conversion methods) through source reduction, reuse, Recycling, Composting,
anaerobic digestion or other method of Processing, subsequent to the provisions of AB 939. Diversion is
a broad concept that is to be inclusive of material handling and Processing changes that may occur over
the Term including, but not limited to, changes in standard industry practice or implementation of
innovative (but not necessarily fully proven) techniques or technology that reduce Disposal risk, decrease
costs and/or are for other reasons deemed desirable by the City.
“Discarded Materials” means Recyclable Materials, Organic Materials, and Solid Waste placed by a
Generator in a receptacle and/or at a location for the purposes of Collection by Contractor, excluding
Excluded Waste.
“Disposal” or “Dispose” (or any variation thereof) means the final disposition of Solid Waste, or
Processing Residue at a Disposal Facility.
“Disposal Facility” means a landfill, or other facility for ultimate Disposal of Solid Waste.
“Drop Box” means an open-top Container with a capacity of seven (7) to forty (40) cubic yards that is
serviced by a roll-off Collection vehicle.
“Dwelling Unit” means any individual living unit in a; Single-Family dwelling (SFD) or Multi-Family dwelling
(MFD) structure or building, a mobile home, or a motor home located on a permanent site intended for,
or capable of being utilized for, residential living other than a Hotel or Motel.
“Edible Food” means food intended for human consumption. For the purposes of this Agreement, Edible
Food is not Solid Waste if it is recovered and not discarded. Nothing in this Agreement requires or
authorizes the recovery of Edible Food that does not meet the food safety requirements of the California
Retail Food Code. If the definition in 14 CCR Section 18982(a)(18) for Edible Food differs from this
definition, the definition in 14 CCR Section 18982(a)(18) shall apply to this Agreement.
“Effective Date” means the date on which the latter of the two Parties signs this Agreement.
“Excluded Waste” means Hazardous Substance, Hazardous Waste, Infectious Waste, Designated Waste,
volatile, corrosive, biomedical, infectious, biohazardous, and toxic substances or material, waste that
Contractor reasonably believes would, as a result of or upon Disposal, be a violation of local, State or
Federal law, regulation or ordinance, including land use restrictions or conditions, waste that cannot be
Disposed of in Class III landfills, waste that in Contractor’s reasonable opinion would present a significant
risk to human health or the environment, cause a nuisance or otherwise create or expose Contractor or
June 9, 2020 Item #10 Page 164 of 286
City to potential liability; but not including de minimis volumes or concentrations of waste of a type and
amount normally found in Residential Solid Waste after implementation of programs for the safe
Collection, Recycling, treatment, and Disposal of batteries and paint in compliance with Sections 41500
and 41802 of the California Public Resources Code. Excluded Waste does not include Used Motor Oil,
Used Oil Filters, or household batteries when properly placed for Collection by Contractor as set forth in
this Agreement.
“Extra Service Tags” are tags approved by City and provided by the Contractor which may be purchased
by Residents and affixed to a bag provided by Residents for the Collection of Solid Waste overages.
“E-Waste" means discarded electronic equipment including, but not limited to, televisions, computer
monitors, central processing units (CPUs), laptop computers, computer peripherals (including external
hard drives, keyboards, scanners, and mice), printers, copiers, facsimile machines, radios, stereos, stereo
speakers, VCRs, DVDs, camcorders, microwaves, telephones, cellular telephones, and other electronic
devices. Some E-Waste or components thereof may be Hazardous Waste or include Hazardous Substances
and thus require special handling, Processing, or Disposal.
“Federal” means belonging to or pertaining to the Federal government of the United States.
“Flow Control” means City right to direct Discarded Materials to a facility of the City’s choosing.
“Food Recovery” means actions to collect and distribute food for human consumption which otherwise
would be disposed, or as otherwise defined in 14 CCR Section 18982(a)(24).
“Food Recovery Organization” means an entity that primarily engages in the collection or receipt of Edible
Food from Commercial Edible Food Generators and distributes that Edible Food to the public for Food
Recovery either directly or through other entities, including, but not limited to:
A. A food bank as defined in Section 113783 of the Health and Safety Code;
B. A nonprofit charitable organization as defined in Section 113841 of the Health and Safety
code; and,
C. A nonprofit charitable temporary food facility as defined in Section 113842 of the Health
and Safety Code.
If the definition in 14 CCR Section 18982(a)(25) for Food Recovery Organization differs from this definition,
the definition in 14 CCR Section 18982(a)(25) shall apply to this Agreement.
“Food Recovery Service” means a Person or entity that collects and transports Edible Food from a
Commercial Edible Food Generator to a Food Recovery Organization or other entities for Food Recovery;
or as otherwise defined in 14 CCR Section 18982(a)(26).“Food Scraps" means those Discarded Materials
that will decompose and/or putrefy including: (i) all kitchen and table food waste; (ii) animal or vegetable
waste that is generated during or results from the storage, preparation, cooking or handling of food stuffs;
June 9, 2020 Item #10 Page 165 of 286
(iii) fruit waste, grain waste, dairy waste, meat, and fish waste; and, (iv) vegetable trimmings, houseplant
trimmings and other compostable organic waste common to the occupancy of Residential dwellings. Food
Scraps are a subset of Food Waste.
“Food-Soiled Paper” means compostable paper material that has come in contact with Food Scraps or
liquid, such as, but not limited to, compostable paper plates, paper coffee cups, napkins, pizza boxes, and
milk cartons.
“Food Waste” means source separated Food Scraps, Food-Soiled Paper, and Compostable Plastics. Food
Waste is a subset of Organic Materials.
“Generator” means any Person whose act or process produces Discarded Materials as defined in the
Public Resources Code, or whose act first causes Discarded Materials to become subject to regulation.
“Franchise Fee” means the fee paid by Contractor to the City as described in Section 7.1.
“Gross Receipts” shall mean total cash receipts collected from Customers by the Contractor for the
provision of services pursuant to this Agreement, without any deductions. Gross Receipts do not include
revenues from the sale of Recyclable Materials.
“Hazardous Substance” means any of the following: (a) any substances defined, regulated or listed
(directly or by reference) as "Hazardous Substances", "hazardous materials", "Hazardous Wastes", "toxic
waste", "pollutant" or "toxic substances" or similarly identified as hazardous to human health or the
environment, in or pursuant to: (i) the Comprehensive Environmental Response, Compensation and
Liability Act (CERCLA) of 1980, 42 USC §9601 et seq. (CERCLA); (ii) the Hazardous Materials Transportation
Act, 49 USC §1802, et seq.; (iii) the Resource Conservation and Recovery Act, 42 USC §6901 et seq.; (iv)
the Clean Water Act, 33 USC §1251 et seq.; (v) California Health and Safety Code §§25115-25117, 25249.8,
25281, and 25316; (vi) the Clean Air Act, 42 USC §7901 et seq.; and, (vii) California Water Code §13050;
(b) any amendments, rules or regulations promulgated thereunder to such enumerated statutes or acts
currently existing or hereafter enacted; and, (c) any other hazardous or toxic substance, material,
chemical, waste or pollutant identified as hazardous or toxic or regulated under any other Applicable Law
currently existing or hereinafter enacted, including, without limitation, friable asbestos, polychlorinated
biphenyl’s (PCBs), petroleum, natural gas, and synthetic fuel products, and by-products.
“Hazardous Waste” means all substances defined as Hazardous Waste, acutely Hazardous Waste, or
extremely Hazardous Waste by the State in Health and Safety Code §25110.02, §25115, and §25117 or in
the future amendments to or recodifications of such statutes or identified and listed as Hazardous Waste
by the U.S. Environmental Protection Agency (EPA), pursuant to the Federal Resource Conservation and
Recovery Act (42 USC §6901 et seq.), all future amendments thereto, and all rules and regulations
promulgated thereunder.
“Holidays” are defined as New Year’s Day, Thanksgiving Day, and Christmas Day.
June 9, 2020 Item #10 Page 166 of 286
“Household Hazardous Waste” or “HHW” means Hazardous Waste generated at Residential Premises
within the City. HHW includes: paint, stain, varnish, thinner, adhesives, auto products such as old fuel,
Used Motor Oil, Used Oil Filter, batteries, household batteries, fluorescent bulbs , tubes, cleaners and
sprays, pesticides, fertilizers and other garden products, needles, syringes, and lancets.
“Infectious Waste” means biomedical waste generated at hospitals, public or private medical clinics,
dental offices, research laboratories, pharmaceutical industries, blood banks, mortuaries, veterinary
facilities and other similar establishments that are identified in Health and Safety Code Section 25117.5
as may be amended from time to time.
“In-Home Recycling Container” refers to a small, easily portable tote bag with a capacity of at least three
(3) gallons to be included by Contractor in the Multi-Family Move-in Kit to facilitate convenient
accumulation of Recyclable Materials within a Multi-Family Dwelling Unit.
“Late Container Delivery Rebate” means the rebate payment to be provided by Contractor to a Customer
in accordance with Section 5.13 for failure to deliver one or more Container(s) to a Customer Premises.
“Liquidated Damages” means the amounts due by Contractor for failure to meet specific quantifiable
standards of performance as described in Section 10.6 and Exhibit F.
“Missed Collection Rebate” means the rebate payment to be provided by Contractor to a Customer in
accordance with Section 5.13 for failure to Collect materials from a Customer Premises.
“Move-in Kit” refers to a pre-prepared and standardized collection of useful items to be given by property
managers or owners of Multi-Family Premises to new Multi-Family tenants upon move-in to a Multi-
Family Dwelling Unit. At a minimum, Move-in Kits shall include a Multi-Family Recycling guide, an In-
Home Recycling Container, and stickers or refrigerator-magnets that clearly define the accepted and
prohibited materials in the Recycling program.
“Multi-Family” means any Residential Premises, other than a Single-Family Premises, with five (5) or more
dwelling units used for Residential purposes (regardless of whether residence therein is temporary or
permanent), including such premises when combined in the same building with Commercial
establishments, that receive centralized, shared, Collection service for all units on the Premises which are
billed to one (1) Customer at one (1) address. Customers residing in Townhouses, mobile homes,
condominiums, or other structures with five (5) or more dwelling units who receive individual service and
are billed separately shall not be considered Multi-Family.
“Mulch” means a layer of material applied on top of soil, and, for the purposes of the Agreement, Mulch
shall conform with the following conditions, or conditions as otherwise specified in 14 CCR Section
18993.1(f)(4):
A. Meets or exceeds the physical contamination, maximum metal concentration, and
pathogen density standards for land applications specified in 14 CCR Section
June 9, 2020 Item #10 Page 167 of 286
17852(a)(24.5)(A)(1) through (3).
B. Was produced at one or more of the following types of Facilities:
1. A compostable material handling operation or facility as defined in 14 CCR Section
17852(a)(12), that is permitted or authorized under Division 7 of Title 14 of the CCR,
other than a chipping and grinding operation or facility as defined in 14 CCR Section
17852(a)(10); Guidance: Note that this criteria disallows Mulch produced from chipping
and grinding operations to count toward fulfillment of a Jurisdiction’s annual Organic
Waste product procurement target.
2. A Transfer/Processing Facility or Transfer/Processing operation as defined in 14 CCR
Section 17402(a)(30) and (31), respectively, that is permitted or authorized under 14
CCR, Division 7, Chapter 12; or,
3. A Solid Waste landfill as defined in PRC Section 40195.1 that is permitted under 27 CCR,
Division 2.
“Occupant” means the Person who occupies a Premises.
“Organic Materials” means Yard Trimmings and Food Waste, individually or collectively. No Discarded
Material shall be considered to be Organic Materials, however, unless it is separated from Recyclable
Material and Solid Waste. Organic Materials are a subset of Organic Waste.
“Organic Waste” means wastes containing material originated from living organisms and their metabolic
waste products including, but not limited to, food, Yard Trimmings, organic textiles and carpets, lumber,
wood, paper products, printing and writing paper, manure, biosolids, digestate, and sludges, or as
otherwise defined in 14 CCR Section 18982(a)(46). Biosolids and digestate are as defined in 14 CCR Section
18982(a)(4) and 14 CCR Section 18982(a)(16.5), respectively.
“Owner” means the Person(s) holding legal title to real property and/or any improvements thereon, and
shall include the Person(s) listed on the latest equalized assessment roll of the County Assessor.
“Paper Garden Bags” means a paper bag approved by City and provided by the Contractor which may be
purchased by Residents for the Collection of Organic Materials overages.
“Party” or “Parties” refers to the City and Contractor, individually or together.
“Person(s)” means any individual, firm, association, organization, partnership, consortium, corporation,
trust, joint venture, commercial entity, governmental entity, public entity, or any other legal person.
“Premises” means any land or building in the City where Recyclable Materials, Organic Materials, or Solid
Waste are generated or accumulated.
“Processing” means to prepare, treat, or convert through some special method.
June 9, 2020 Item #10 Page 168 of 286
“Processing Facility” means any plant or site used for the purpose of sorting, cleansing, treating or
reconstituting Recyclable Materials, or Reusable Materials for the purpose of making such material
available for Recycling or reuse or the facility for the Processing and/or Composting of Organic Materials.
“Prohibited Container Contaminants” means the following: (i) Discarded Materials placed in the
Recyclable Materials Container that are not identified as acceptable Recyclable Materials for the City’s
Collection program; (ii) Discarded Materials placed in the Organic Materials Container that are not
identified as acceptable Organic Materials for the City’s Collection program; (iii) Discarded Materials
placed in the Solid Waste Container that are acceptable Recyclable Materials and/or Organic Materials to
be placed in the City’s Recyclable Materials or Organic Materials Containers or otherwise managed under
the City’s Collection program; and, (iv) Excluded Waste placed in any Container.
“Proprietary Information” or “Proprietary”
“Public Street” means all City-owned and maintained paved areas between the normal Curb line of a
roadway, including public parking lots, roadway dividers, and medians.
“Rate” means the maximum amount, expressed as a dollar unit, approved by the City that the Contractor
may bill a Customer for providing services under this Agreement. A Rate has been established for each
individual Service Level and the initial Rates for Rate Period Zero and Rate Period One are presented in
Exhibit G3. The Rates approved by City are the maximum Rate that Contractor may charge a Customer
and Contractor may, in its sole discretion, charge any amount up to and including the maximum Rate
approved by the City.
“Rate Period” means a twelve (12) month period, commencing January 1 and concluding December 31.
“Recyclable Materials” means those Discarded Materials that: the Generators set out in Recyclables
Containers for Collection for the purpose of Recycling by the Contractor and that exclude Excluded Waste.
No Discarded Materials shall be considered Recyclable Materials unless such material is separated from
Organic Materials, and Solid Waste. Recyclable Materials shall include, but not be limited to: newspaper
(including inserts, coupons, and store advertisements); mixed paper (including office paper, computer
paper, magazines, junk mail, catalogs, brown paper bags, brown paper, paperboard, paper egg cartons,
telephone books, grocery bags, colored paper, construction paper, envelopes, legal pad backings, shoe
boxes, gabletop beverage containers, cereal, and other similar food boxes yet excluding paper tissues,
paper towels, paper with plastic coating, paper contaminated with food, wax paper, foil-lined paper and
cartons, Tyvex non-tearing paper envelopes); chipboard; corrugated Cardboard; glass containers of any
color (including brown, clear, and green glass bottles and jars); aluminum (including beverage containers
and small pieces of scrap metal); steel, tin or bi-metal cans; mixed plastics such as plastic containers (no.
1 to 7), except expanded Polystyrene (EPS); bottles including containers made of HDPE, LDPE, or PET; film
plastic (when clean, dry, and contained inside of a plastic bag); dry cell household batteries when placed
on the Recycling Cart in a sealed heavy-duty plastic bag; and, those materials added by the Contractor
June 9, 2020 Item #10 Page 169 of 286
from time to time. {Note to Proposers: this list will ultimately reflect the materials included in Contractor’s
Proposal}
“Recycle” or “Recycling” means the process of sorting, cleansing, treating, and reconstituting at a
Recyclable Materials Processing Facility materials that would otherwise be Disposed of at a landfill for the
purpose of returning such materials to the economy in the form of raw materials for new, reused, or
reconstituted products. Recycling includes processes deemed to constitute a reduction of Landfill Disposal
pursuant to 14 CCR, Division 7, Chapter 12, Article 2. Recycling does not include gasification or
transformation as defined in Public Resources Code Section 40201.
“Renewable Natural Gas” or “RNG” means gas derived from Organic Waste that has been diverted from
a Landfill and Processed at an in-vessel digestion facility that is permitted or otherwise authorized by 14
CCR to recover Organic Waste, or as otherwise defined in 14 CCR Section 18982(a)(62).
“Residential” shall mean of, from, or pertaining to a Single-Family Premises or Multi-Family Premises
including Single-Family homes, apartments, condominiums, townhouse complexes, mobile home parks,
and cooperative apartments.
“Residue” means those materials which, after Processing, are Disposed rather than Recycled due to either
the lack of markets for materials or the inability of the Processing Facility to capture and recover the
materials.
“Reusable Materials” means items that are capable of being used again after minimal Processing.
Reusable Materials may be Collected Source Separated or recovered through a Processing Facility.
“Service Opportunity” shall mean each individual scheduled opportunity the Contractor has to Collect
from a Container at a Customer’s location. For example, a Commercial Customer receiving Recyclable
Materials Collection service two (2) times per week from two (2) Containers, Organic Materials Collection
service two (2) times per week from (2) Containers, and Solid Waste Collection service two (2) times per
week from two (2) Containers would have a total of twelve (12) Service Opportunities each week. Service
Opportunities shall be calculated based on the subscription levels presented in Contractor’s most recent
Quarterly Report to City.
“SB 1383” means Senate Bill 1383 of 2016 approved by the Governor on September 19, 2016, which added
Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the Health and Safety Code, and added Chapter 13.1
(commencing with Section 42652) to Part 3 of Division 30 of the Public Resources Code, establishing
methane emissions reduction targets in a statewide effort to reduce emissions of short-lived climate
pollutants as amended, supplemented, superseded, and replaced from time to time.
For the purposes of this Agreement, SB 1383 specifically refers to the Short-Lived Climate Pollutants
(SLCP): Organic Waste Reductions regulations developed by CalRecycle and adopted on ______, 2020 that
created Chapter 12 of 14 CCR, Division 7 and amended portions of regulations of 14 CCR and 27 CCR.
June 9, 2020 Item #10 Page 170 of 286
“Self-Hauler” or “Self-Haul” means a Person who hauls Discarded Materials, recovered material, or any
other material, to another Person, or as otherwise defined in 14 CCR Section 18982(a)(66). Self-Hauler
also includes a Person who back-hauls waste, as defined in 14 CCR Section 18982(a)(66)(A).
“Service Level” refers to the size of a Customer’s Container and the frequency of Collection service.
“Single-Family” means, notwithstanding any contrary definition in City Code, any detached or attached
house or residence designed or used for occupancy by one (1) family, provided that Collection service
feasibly can be provided to such Premises as an independent unit, and the Owner or Occupant of such
independent unit is billed directly for the Collection service. Single-Family includes Townhouses, and each
independent unit of duplex, tri-plex, or four-plex Residential structures, regardless of whether each unit
is separately billed for their specific service level.
“Solid Waste” means solid waste as defined in California Public Resources Code, Division 30, Part 1,
Chapter 2, §40191 and regulations promulgated hereunder. Excluded from the definition of Solid Waste
are Excluded Waste, C&D, Source Separated Recyclable Materials, Source Separated Organic Materials,
and radioactive waste. Notwithstanding any provision to the contrary, Solid Waste may include de minimis
volumes or concentrations of waste of a type and amount normally found in Residential Solid Waste after
implementation of programs for the safe Collection, Recycling, treatment, and Disposal of Household
Hazardous Waste in compliance with Section 41500 and 41802 of the California Public Resources Code as
may be amended from time to time. Solid Waste includes salvageable materials only when such materials
are included for Collection in a Solid Waste Container not source separated from Solid Waste at the site
of generation.
“Source Separated” means the segregation, by the Generator, of materials designated for separate
Collection for some form of Recycling, Composting, recovery, or reuse.
“Specialty Recyclable Material” means material not specified in this Agreement that can be or will be
Collected for purposes of Recycling. Such Specialty Recyclable Material may include, but is not limited to,
scrap metal, high-grade paper (including office mixed paper), pallets, and plastic film.
“Split-Bin” means a Bin that is split or divided into two sections in order to segregate two source separated
Discarded Material types in one Container.
“State” means the State of California.
“Subcontractor” means a Party who has entered into a contract, express or implied, with the Contractor
for the performance of an act that is necessary for the Contractor’s fulfillment of its obligations for
providing service under this Agreement. Vendors providing materials and supplies to Contractor shall not
be considered Subcontractors.
“Term” means the Term of this Agreement, including extension periods if granted, as provided for in
Article 2.
June 9, 2020 Item #10 Page 171 of 286
“Tier One Commercial Edible Food Generator” means a Commercial Edible Food Generator that is one of
the following, each as defined in 14 CCR Section 18982:
A. Supermarket.
B. Grocery Store with a total facility size equal to or greater than 10,000 square feet.
C. Food Service Provider.
D. Food Distributor.
E. Wholesale Food Vendor.
If the definition in 14 CCR Section 18982(a)(73) of Tier One Commercial Edible Food Generator differs
from this definition, the definition in 14 CCR Section 18982(a)(73) shall apply to this Agreement.
“Tier Two Commercial Edible Food Generator” means a Commercial Edible Food Generator that is one
of the following, each as defined in 14 CCR Section 18982:
A. Restaurant with 250 or more seats, or a total facility size equal to or greater than 5,000
square feet.
B. Hotel with an on-site food facility and 200 or more rooms.
C. Health facility with an on-site food facility and 100 or more beds.
D. Large Venue.
E. Large Event.
F. A State agency with a cafeteria with 250 or more seats or total cafeteria facility size
equal to or greater than 5,000 square feet.
G. A local education agency with an on-site food facility. If the definition in 14 CCR Section
18982(a)(74) of Tier Two Commercial Edible Food Generator differs from this definition, the
definition in 14 CCR Section 18982(a)(74) shall apply to this Agreement.
“Ton” or “Tonnage” means a unit of measure for weight equivalent to two thousand (2,000) standard
pounds where each pound contains sixteen (16) ounces.
“Total Service Opportunities” shall mean the sum of all Service Opportunities in a given time period.
“Townhouse” means an attached or semi-attached Single-Family Premises within a group of attached or
semi-attached Single-Family Premises, regardless of whether the Premises is billed individually or through
a central account (e.g. homeowner association, property manager), wherein each unit maintains
individual Collection service subscription, as determined in writing by the City Contract Manager. {Note
to Proposers: This definition is subject to change based on the final selected proposal.}
“Trade Secrets” mean information, including a formula, pattern, compilation, program, device, method,
technique, or process that derives actual economic value from not being generally known or readily
ascertainable by reasonable means.
“Transfer” means the act of transferring the materials Collected by Contractor in its route vehicles into
larger vehicles for Transport to other facilities for the purpose of Recycling or Disposing of such materials.
June 9, 2020 Item #10 Page 172 of 286
“Transportation” or “Transport” means the act of conveying Collected materials from one location to
another.
“Universal Waste” or “U-Waste” means all wastes as defined by Title 22, Subsections 66273.1 through
66273.9 of the California Code of Regulations. These include, but are not limited to, batteries, fluorescent
light bulbs, mercury switches, and E-Waste.
“Used Motor Oil and Filter” means used oil fluids for vehicles including motor oil, brake, transmission and
hydraulic fluids, crankcase and differential oils, lubricating oils for vehicles, and oil filters from automobiles
and light trucks.
“Used Oil Recovery Kit” means a kit containing: one (1) reusable plastic jug of at least one (1) gallon
capacity with a leak-proof watertight screw-on top to contain Used Motor Oil or used cooking oil; one (1)
six (6) mil plastic disposable resealable bag with double track seal of sufficient capacity to accommodate
one (1) Used Motor Oil Filter; and, a flyer, brochure, or other informational media approved by the City
intended to educate Customers about the Used Motor Oil and Filter Collection program and the benefits
resulting from the proper handling of Used Motor Oil and Filters. The Used Oil Recovery Kit is to be
provided to Customers by Contractor to recover Used Motor Oil and Filter, and used cooking oil from
Single-Family and Townhouse residents. {Note to Proposers: Proposers are welcome to propose a strategy
for Used Oil Recovery Kit design and/or labels which would enable Contractor to clearly distinguish
between motor oil and cooking oil placed for Collection.}
“Working Days” means days on which the Contractor is required to provide regularly scheduled Collection
services under this Agreement.
“Yard Trimmings” means those Discarded Materials that will decompose and/or putrefy, including, but
not limited to, green trimmings, grass, weeds, leaves, prunings, branches, dead plants, brush, tree
trimmings, dead trees, small pieces of unpainted and untreated wood, and other types of Organic
Materials resulting from normal yard and landscaping maintenance that may be specified in City
Legislation for Collection and processing as Organic Materials under this Agreement. Yard Trimmings does
not include items herein defined as Excluded Waste. Yard Trimmings are a subset of Organic Materials.
Yard Trimmings placed for Collection may not exceed six (6) inches in diameter and three (3) feet in length
and must fit within the Contractor-provided Container.
June 9, 2020 Item #10 Page 173 of 286
EXHIBIT B:
DIRECT SERVICES
The following Exhibits (B1 through B5) describe the programs which, in aggregate, represent the direct
services to be performed under this Agreement by the Contractor.
Each of the following Exhibits (B1 through B5) present the programs to be provided to each Customer
Type by Contractor. Within each program description are specific requirements for the:
• Type and size of Containers or Service Level to be offered by Contractor under each program;
• Frequency of service to be offered by Contractor to Customers;
• Location of service, including an indication of whether or not additional charges may apply if a
Customer selects a location that is more costly to serve (e.g. back-yard service);
• Materials that are acceptable or prohibited within the program;
• Provision of additional services to the Customer if the standard Service Levels are inadequate, either
on a regular or periodic basis, and an indication of whether or not additional charges may apply;
and/or,
• Other requirements and considerations of the program.
Contractor shall provide the services for each program described in accordance with the specific program
requirements detailed in Exhibits B1 through B5 and Contractor shall promote such programs using the
public education and outreach methods described in Exhibit C.
June 9, 2020 Item #10 Page 174 of 286
This page intentionally left blank
June 9, 2020 Item #10 Page 175 of 286
EXHIBIT B1:
SINGLE-FAMILY RESIDENTIAL SERVICE
June 9, 2020 Item #10 Page 176 of 286
{Note to Proposers: This Exhibit B1 assumes a three-Container system will be used consisting of containers
for: Recyclable Materials, Organic Materials, and Solid Waste. If the City selects a four-Container system
based on proposals received, this Exhibit B1 would be modified to have four sections, including: Recyclable
Materials, Yard Trimmings, Food Waste, and Solid Waste.
1. Recyclable Materials Collection
Contractor shall Collect Recyclable Materials placed in Contractor-provided Containers one (1) time per
week from Single-Family (including Townhouse) Customers and Transport all Recyclable Materials to the
Approved Recyclable Materials Processing Facility for Processing.
Containers: Carts
Container Sizes: 32-, 64-, and 96-gallons (or comparable sizes approved by the City).
Standard Container size is 64-gallon. 96-gallon service shall be made available for
no additional charge, upon request by Customer.
Service Frequency: One (1) time per week on the same day as Organic Materials and Solid Waste
Collection services.
Service Location: Curbside
Acceptable Materials: Recyclable Materials
Prohibited Materials: Solid Waste, Organic Materials, Excluded Waste
Additional Service: Single-Family Customers shall receive one (1) Recyclable Materials Cart standard
and may request up to two (2) additional Recyclable Materials Carts at no
additional charge. Contractor shall provide additional Recyclable Materials Carts
to Single-Family Customers upon request and may charge the appropriate Rate
approved by the City.
Contractor shall allow Single-Family Customers to place unlimited flattened
Cardboard (pieces no larger than 2’ x 3’), and additional volumes of mixed
Recyclable Materials contained in paper bags or cardboard boxes adjacent to the
Recyclable Materials Cart on their regularly-scheduled Collection day at no
additional charge to the Customer.
Other Requirements: Contractor shall accept household batteries in the Recyclable Materials program,
provided that those batteries have been separately packaged in a sealed,
fluorescent, storage plastic bag and placed on top of the Recyclable Materials
Cart.
Contractor may refuse to Collect a Recyclable Materials Container that contains
prohibited container contaminants in the manner and subject to the limits
described in Section 4.12 and provided that Contractor leaves a Non-Collection
Notice in accordance with Section 5.3.B of this Agreement. Contractor shall keep
a record of all Non-Collection Notices and Courtesy Notices issued to Customers,
recording at a minimum the date, Customer address and material type of the
Container in question.
June 9, 2020 Item #10 Page 177 of 286
2. Organic Materials Collection
{Note to Proposers: As noted above, this Exhibit B1 assumes a three-Container system. If four-Container
system is chosen, this section would be broken into two: one for Yard Trimmings and one for source
separated Food Waste.}
Contractor shall Collect Organic Materials placed in Contractor-provided Carts one (1) time per week from
Single-Family Customers and Transport all Organic Materials to the Approved Organic Materials
Processing Facility for Processing. As of the Commencement Date, Organic Materials Collection service,
as described in this Section 2 shall not be available to
Containers: Carts
Container Sizes: 32, 64, 96-gallons (or comparable size approved by the City).
Service Frequency: One (1) time per week on the same day as Recyclable Materials and Solid Waste
Collection service.
Service Location: Curbside.
Acceptable Materials: Organic Materials (including Yard Trimmings and Food Waste)
Prohibited Materials: Recyclable Materials, Solid Waste, Excluded Waste
Additional Service: Single-Family Customers shall receive one (1) Organic Materials Cart standard and
may request up to two (2) additional Organic Materials Carts at no additional
charge. Contractor shall provide additional Organic Materials Carts to Single-
Family Customers upon request and may charge the appropriate Rate approved
by the City.
Other Requirements: Contractor shall provide to all Single-Family Customers kitchen pails designed to
contain Food Scraps prior to placement in the Customer’s Organic Materials Cart.
Kitchen pail specifications shall be approved by the City prior to ordering and
distribution.
Single-Family Customers may place Organic Materials in Compostable plastic bags
and then place the bagged Organic Materials into their Organic Materials Carts
for collection. Such bags must be labeled as “Compostable” by the manufacturer
and certified by BPI. Contractor shall submit the required Compostable Plastic
Processing notifications in accordance with Section 4.2.C and Exhibit D of this
Agreement.
Contractor may refuse to Collect an Organic Materials Container that contains
prohibited container contaminants in the manner and subject to the limits
described in Section 4.12 and provided that Contractor leaves a Non-Collection
Notice in accordance with Section 5.3.B of this Agreement. Contractor shall keep
a record of all Non-Collection Notices and Courtesy Notices issued to Customers,
recording at a minimum the date, Customer address and material type of the
Container in question.
June 9, 2020 Item #10 Page 178 of 286
3. Solid Waste Collection
Contractor shall Collect Solid Waste placed in Contractor-provided Carts one (1) time per week from
Single-Family Customers and Transport all Solid Waste to the Designated Disposal Facility for Disposal.
Containers: Carts
Container Sizes: 32-, 64-, and 96-gallons (or comparable sizes approved by the City)
As requested by Customer
Service Frequency: One (1) time per week on the same day as Recyclable Materials and Organic
Materials collection service.
Service Location: Curbside
Acceptable Materials: Solid Waste
Prohibited Materials: Recyclable Materials, Organic Materials, Excluded Waste
Additional Service: Contractor shall provide additional Solid Waste Carts to Single-Family Customers
upon request and may charge the appropriate Rate approved by the City.
Other Requirements: None
4. Used Oil and Filter Collection
Contractor shall Collect Used Motor Oil and Filters and used cooking oil placed in a Contractor-provided
Used Oil Recovery Kit from Single-Family Customers and shall Recycle all Used Motor Oil and Filters and
used cooking oil Collected pursuant to this Agreement.
Containers: Used Oil Recovery Kit
Container Sizes: 1-gallon filter bags; and, 1-gallon oil jugs
Service Frequency: Up to one (1) time per week on the same day as Solid Waste Collection service.
Service Location: Curbside (adjacent to Recyclable Materials Cart)
Acceptable Materials: Used Motor Oil and Filter, used cooking oil
Prohibited Materials: Recyclable Materials, Organic Materials, Solid Waste, Excluded Waste
Additional Service: Not applicable
Other Requirements: Contractor shall provide a Used Oil Recovery Kit to a Customer within three (3)
Working Days of Customer request, at no additional cost to Customer. Upon
Collection of Used Motor Oil and Filter from a Customer, Contractor shall leave a
clean and empty Used Oil Recovery Kit adjacent to the Recyclables Cart.
Contractor shall Recycle the Used Motor Oil and Filter and used cooking oil only
with Persons who are authorized by the State of California to Recycle such
materials. In the event the Used Motor Oil and Filter and/or used cooking oil
Collected pursuant to this Agreement is contaminated to the extent that the
materials require Disposal as a Hazardous Waste, Contractor shall dispose of such
materials, at Contractor’s own cost and expense in accordance with Applicable
Law.
June 9, 2020 Item #10 Page 179 of 286
Contractor shall notify the City Contract Manager of any contamination which
renders the Used Motor Oil and Filter or used cooking oil unacceptable for
Recycling or which requires Disposal as a Hazardous Waste.
Contractor shall keep all Used Motor Oil and Filters and used cooking oil Collected
pursuant to this Agreement segregated from other materials.
Contractor may refuse to Collect Used Motor Oil and Filter if it is not contained in
an approved Used Oil Recovery Kit, provided that Contractor leaves a Non-
Collection Notice which explains the reason for non-Collection, and also leaves a
clean and empty Used Oil Recovery Kit adjacent to the refused Used Motor Oil
and Filter set-out. Contractor may refuse to Collect a Used Motor Oil Recovery
Kit which contains liquid other than Used Motor Oil or cooking oil, provided that
Contractor leaves a Non-Collection Notice which explains the reason for non-
Collection.
6. On-Call Bulky Item/Reusable Materials Collection
Contractor shall Collect Bulky Items, Reusable Materials, and other materials described herein from
Single-Family Customers. Contractor shall Transport all Collected materials to the appropriate Approved
Facility for Reuse, Processing, or Disposal. {Note to Proposers: this Section 6 will be used in the event that
the alternative proposal extending such service to single-family customers is selected by the City. If it is not
selected, this Section will be deleted}
Containers: Not applicable
Service Level: Up to five (5) Bulky Items or Discarded Materials where each cubic yard of
Recyclable Materials, Yard Trimmings, Solid Waste, and/or E-Waste shall count as
one (1) item
Service Frequency: Three (3) times per year
Service Location: Curbside
Acceptable Materials: Reusable Materials, Bulky Items, Recyclable Materials, Yard Trimmings, and Solid
Waste
Prohibited Materials: Food Scraps, Hazardous Materials, abandoned automobiles, trees, Excluded
Waste or any single item (e.g. large auto parts, etc.) that exceeds two-hundred
(200) lbs. in weight
Additional Service: Contractor shall provide additional Bulky Item/Reusable Materials Collections to
Single-Family Customers, beyond three (3) per year, and shall Collect additional
Acceptable Materials (as described herein) that exceed the required Service Level
(as requested by Customer), and may charge the appropriate Rates approved by
the City for such additional service.
Other Requirements: Contractor shall provide the service to the Customer within one (1) Working Days
of the Customer’s requested service date, as mutually agreed upon by the
Customer and Contractor. Contractor shall not Dispose of materials Collected
through the on-call Bulky Item/Reusable Materials Collection program unless the
materials cannot be reused or Recycled. Contractor shall Process and Dispose of
June 9, 2020 Item #10 Page 180 of 286
Bulky Items and Reusable Materials Collected from Customers in accordance with
the following hierarchy: (1) Reuse as is (where energy efficiency is not
compromised); (2) disassemble for reuse or Recycling; (3) Recycle or Compost;
and if none of the other options are practicable; then, (4) Dispose.
7. Holiday Tree Collection
Annually, commencing the day after December 25 and three (3) weeks thereafter, the Contractor shall
collect holiday trees from Single-Family Customers. Customers are required to place the holiday trees
curbside on the Customer’s regularly scheduled Collection day. Holiday trees must be removed from
stands; cut into lengths no longer than four (4) feet; and, be free of ornaments, garlands, tinsel, flocking,
or other decorations. The Contractor shall not be required to Collect holiday trees that do not meet the
aforementioned criteria. The Contractor shall affix a non-Collection notice to any non-Collected tree
informing the Customer of the reason(s) for non-Collection. Contractor may charge City-approved Rates
to return and Collect a previously non-Collected Holiday tree that has been corrected and set out.
Contractor shall deliver all Collected Christmas trees to the Approved/Designated Organic Materials
Processing Facility for Processing.
Holiday tree Collection services shall be provided at no additional cost to the City or the Customer.
8. Alternative Service Location for Disabled Single-Family Customers
Contractor shall allow for Persons that have a disability as defined by the Americans with Disabilities Act
(which means Public Law 101-336, 104 Stat. 327, 42 U.S.C. 12101-12213 and 27 U.S.C. 225 and 611, and
all Federal rules and regulations relating thereto) that are Occupants of Single-Family Premises to receive
Collection services at a location other than Curbside at no extra charge to the Customer. Contractor shall
review all applications (which shall include statements from physicians) made by Customers to determine
conformance with this exemption provision and shall grant exemptions, if applicable. Contractor shall
make reasonable accommodations with regard to provision of and servicing of Containers (e.g., Container
size and type, placement of Containers for Collection, etc.) at no additional cost to the Customer. Upon
Customer request, Contractor may make such alternative service locations available to Single-Family
Customers that do not have a disability (as defined herein) for an additional, City-approved Rate.
9. ON CALL ELECTRONIC WASTE COLLECTION
Contractor shall provide Electronic Waste Collection Service to all Single-Family Customers in the Service
Area whose Electronic Waste has been placed within three (3) feet of the curb, swale, paved surface of
the public roadway, closest accessible roadway, or other such location agreed to by the Contractor and
Customer, that will provide safe and efficient accessibility to the Contractor's Collection crew and vehicle.
Customers are required to call in to schedule an Electronic Waste pick-up by 5:00 PM the day prior to the
Customer's regular Collection day.
June 9, 2020 Item #10 Page 181 of 286
Customer may place up to five (5) items out for Collection per collection event. SFD and MFD Customers
are entitled to three (3) collection events per dwelling per Rate Period at no additional charge. Contractor
shall not be required to collect oversized items of Electronic Waste that cannot be handled by one (1)
person.
10. SHARPS WASTE COLLECTION
Contractor shall provide for Sharps Waste generated by Single-Family Customers at no charge through a
container placed at up to three (3) locations at City facilities designated by the City. Contractor will replace
the container at the City facility up to ten (10) times each Rate Period, on an as-needed basis. Contractor
shall also make available to Customers a sharps by mail service from a third party provider through its
website, at the rate established by the third party provider from time to time.
June 9, 2020 Item #10 Page 182 of 286
This page intentionally left blank
June 9, 2020 Item #10 Page 183 of 286
EXHIBIT B2:
MULTI-FAMILY RESIDENTIAL SERVICES
June 9, 2020 Item #10 Page 184 of 286
1. Recyclable Materials Collection
Contractor shall Collect Recyclable Materials placed in Contractor-provided Containers from Multi-Family
Customers at no additional charge with Customer subscription to Solid Waste Collection service, and shall
Transport all Recyclable Materials to the Approved Recyclable Materials Processing Facility for Processing.
Recyclable Materials Collection Services shall be provided to Multi-Family Customers at no additional
charge.
Containers: Carts, Bins
Container Sizes: 32-, 64-, and 96-gallon Carts (or comparable size approved by the City); and
1-, 2-, 3-, 4-, 5-, and 6-cubic yard Bins, and 3 cubic yard Split-Containers.
As requested by Customer
Service Frequency: Up to six (6) times per week but not less than one (1) time per week (as requested
by Customer); unless the Customer has received a Collection frequency waiver
for Recyclable Materials in accordance with Section 4.11.2, in which case service
frequency shall be not less than one (1) time per fourteen (14) days
Service Location: Curbside or other Customer-selected service location at the Multi-Family
Premises
Acceptable Materials: Recyclable Materials
Prohibited Materials: Organic Materials, Solid Waste, Excluded Waste
Additional Service: Special pick-ups requested by a Customer, on days other than their regularly
scheduled Collection day, will be available at an approved additional charge. Such
additional picks-ups can be scheduled equating to up to six (6) days per week total
service.
Other Requirements: Contractor shall provide to all Multi-Family Dwelling Units Personal Recycling
Totes designed to contain Recyclable Materials prior to placement in the
Recyclable Materials Container. Personal Recycling Tote specifications shall be
approved by the City prior to ordering and distribution.
Contractor shall make contact with each and every Multi-Family Customer in
advance of the Commencement Date to determine appropriate Container sizes
and service frequency. Contractor shall deliver Recyclable Materials Containers
to each and every Multi-Family Customer at the same time that the Contractor
delivers Solid Waste Containers.
Contractor shall open and close gates, push and/or pull Containers, lock and
unlock Containers, or perform other services as reasonably necessary to access
and service Containers (additional charge may apply). A push/pull of Containers
up to twenty-five (25) feet from the enclosure/container location to the
Collection vehicle will be provided at no additional charge (push up to 25 feet
then return).
Contractor may refuse to Collect a Recyclable Materials Container that contains
June 9, 2020 Item #10 Page 185 of 286
prohibited container contaminants in the manner and subject to the limits
described in Section 4.12 and provided that Contractor leaves a Non-Collection
Notice in accordance with Section 5.3.B of this Agreement. Contractor shall keep
a record of all Non-Collection Notices and Courtesy Notices issued to Customers,
recording at a minimum the date, Customer address and material type of the
Container in question.
2. Organic Materials Collection
Contractor shall Collect Organic Materials in Contractor-provided Carts not less than one (1) time per week
from Multi-Family Customers and Transport all Organic Materials to the Approved Organic Materials
Processing Facility for Processing. Organic Materials Collection services shall be provided to Multi-Family
Customers at no additional charge.
Containers: Carts, Bins
Container Sizes: 32-, 64-, and 96-gallon Carts (or comparable size approved by the City); and,
1-, 2-, 3-, and 4-cubic yard Bins.
As requested by Customer.
Service Frequency: Up to six (6) times per week but not less than one (1) time per week, as requested
by the Multi-Family Customer.
Service Location: Curbside or other Customer-selected service location at the Multi-Family
Premises
Acceptable Materials: Organic Materials (including Yard Trimmings and Food Waste)
Prohibited Materials: Recyclable Materials, Solid Waste, Excluded Waste
Additional Service: Special pick-ups requested by a Customer, on days other than their regularly
scheduled Collection day, will be available at an approved additional charge. Such
additional picks-ups can be scheduled equating to up to six (6) days per week total
service.
Other Requirements: Contractor shall provide to all Multi-Family Dwelling Units kitchen pails designed
to contain Food Scraps prior to placement in the Customer’s Organic Materials
Container. Kitchen pail specifications shall be approved by the City prior to
ordering and distribution.
Contractor shall make contact with each and every Multi-Family Customer in
advance of the Commencement Date to determine appropriate Container sizes
and service frequency. Contractor shall deliver Organic materials containers to
each and every Multi-Family Customer at the same time that the contractor
delivers Solid Waste Containers.
Contractor shall open and close gates, push and/or pull Containers, lock and
unlock Containers, or perform other services as reasonably necessary to access
and empty Containers (additional charge may apply). A push/pull of Containers
up to twenty-five (25) feet from the enclosure/Container location to the
Collection vehicle will be provided at no additional charge (push up to 25 feet
then return).
June 9, 2020 Item #10 Page 186 of 286
Contractor may refuse to Collect an Organic Materials Container that contains
prohibited container contaminants in the manner and subject to the limits
described in Section 4.12 and provided that Contractor leaves a Non-Collection
Notice in accordance with Section 5.3.B of this Agreement. Contractor shall keep
a record of all Non-Collection Notices and Courtesy Notices issued to Customers,
recording at a minimum the date, Customer address and material type of the
Container in question.
3. Solid Waste Collection
Contractor shall Collect Solid Waste placed in Contractor-provided Containers not less than one (1) time
per week from Multi-Family Customers and Transport all Solid Waste to the Designated Disposal Facility
for Disposal.
Containers: Carts, Bins
Container Sizes: 32, 64-, and 96-gallon Carts (or comparable size approved by the City); and
1-, 2-, 3-, 4-, 5-, and 6-cubic yard Bins, and 3 cubic yard Split-Containers.
As requested by Customer
Service Frequency: Up to three (3) times per week but not less than one (1) time per week, as
requested by Customer, unless the Customer has received a Collection frequency
waiver for Solid Waste in accordance with Section 4.11.2, in which case service
frequency shall be not less than one (1) time per fourteen (14) days.
Service Location: Curbside or other Customer-selected service location at the Multi-Family
Premises
Acceptable Materials: Solid Waste
Prohibited Materials: Recyclable Materials, Organic Materials, Excluded Waste
Additional Service: Special pick-ups requested by a Customer, on days other than their regularly
scheduled Collection day, will be available at an approved additional charge. Such
additional picks ups can be scheduled equating to up to three (3) days per week
total service.
Other Requirements: Contractor shall make contact with each and every Multi-Family Customers in
advance of the Commencement Date to determine appropriate Container sizes
and service frequency.
Contractor shall open and close gates, push and/or pull Containers, lock and
unlock Containers, or perform other services as reasonably necessary to access
and service Containers (additional charge may apply). A push/pull of Containers
up to twenty-five (25) feet from the enclosure/Container location to the
Collection vehicle will be provided at no additional charge (push up to 25 feet
then return).
June 9, 2020 Item #10 Page 187 of 286
4. Bulky Item/Reusable Materials Collection
Contractor shall Collect Bulky Items, Reusable Materials, and other materials described herein from Multi-
Family Customers. Contractor shall Transport all Collected materials to the appropriate Approved Facility
for Reuse, Processing, or Disposal. {Note to Proposers: this Section 4 will be used in the event that the
alternative proposal extending such service to multi-family customers is selected by the City. If it is not
selected, this Section will be deleted}
Containers: Not applicable
Service Level: Up to five (5) Bulky Items or Discarded Materials where each cubic yard of
Recyclable Materials, Yard Trimmings, Solid Waste, and/or E-Waste shall count as
one (1) item
Service Frequency: Three (3) times per year
Service Location: Curbside
Acceptable Materials: Reusable Materials, Bulky Items, Recyclable Materials, Yard Trimmings, and Solid
Waste
Prohibited Materials: Food Scraps, Hazardous Materials, abandoned automobiles, trees, Excluded
Waste or any single item (e.g. large auto parts, etc.) that exceeds two-hundred
(200) lbs. in weight
Additional Service: Contractor shall provide additional Bulky Item/Reusable Materials Collections to
Multi-Family Customers, beyond three (3) per year, and shall Collect additional
Acceptable Materials (as described herein) that exceed the required Service Level
(as requested by Customer), and may charge the appropriate Rates approved by
the City for such additional service.
Other Requirements: Contractor shall provide the service to the Customer within one (1) Working Days
of the Customer’s requested service date, as mutually agreed upon by the
Customer and Contractor. Contractor shall not Dispose of materials Collected
through the on-call Bulky Item/Reusable Materials Collection program unless the
materials cannot be reused or Recycled. Contractor shall Process and Dispose of
Bulky Items and Reusable Materials Collected from Customers in accordance with
the following hierarchy: (1) Reuse as is (where energy efficiency is not
compromised); (2) disassemble for reuse or Recycling; (3) Recycle or Compost;
and if none of the other options are practicable, (4) Dispose.
5. Holiday Tree Collection
Annually, commencing the day after December 25 and three (3) weeks thereafter, or as otherwise
approved by the City Contract Manager, Contractor shall Collect Holiday trees from Multi-Family
Customers at a mutually agreed upon time, date, and designated Collection location, as arranged by the
Contractor and each Multi-Family property owner or manager. Contractor shall offer each Multi-Family
property owner or manager the option to receive Christmas tree Collection service in Bins or Drop Boxes,
which Contractor shall provide for such service. Contractor shall also offer each Multi-Family property
owner or manager the option to receive un-containerized Christmas tree Collection service Curbside, or
June 9, 2020 Item #10 Page 188 of 286
from designated location at the Multi-Family Premises mutually agreed upon between Contractor and the
property owner or manager.
Holiday trees must be removed from stands; cut into lengths no longer than four (4) feet; and, be free of
ornaments, garlands, tinsel, flocking, or other decorations. The Contractor shall not be required to Collect
holiday trees that do not meet the aforementioned criteria and/or are not placed at the agreed upon
Collection location and time period. The Contractor shall affix a non-Collection notice to any non-Collected
holiday tree informing the Customer of the reason(s) for non-Collection
6. Container Sharing and Split-Containers
In special circumstances for Customers with significant space limitations and upon approval by the City
Contract Manager, the Contractor shall permit Multi-Family Customers to share Discarded Materials
service with other geographically proximate Customers. Such shared service shall be performed, and
billed, as if it were being provided to a single Customer, with the exception that Contractor shall require
all Customers sharing a single service account to identify a “Primary Responsible Party” which will serve
as the singular point of contact for communication and billing from Contractor and the City, along with a
list of all addresses with which the Primary Responsible Party will share service.
Additionally, the Contractor shall, upon Customer request, provide Split-Bins for Multi-Family Customers
with space limitations, and shall Collect, Transport, Transfer, and Process or Dispose of each material type
in accordance with this Agreement.
{Note to proposers: The specific types of Split-Bins and the materials to be Collected have not been
specified here. Proposers may include specific types of Split-Bins for consideration, and upon City’s
selection, the types of Split-Bins may be further specified in the Agreement.}
7. ON CALL ELECTRONIC WASTE COLLECTION
Contractor shall provide Electronic Waste Collection Service to all Multi-Family Customers in the Service
Area whose Electronic Waste has been placed at a location agreed to by the Contractor and Customer,
that will provide safe and efficient accessibility to the Contractor's Collection crew and vehicle.
Customers are required to call in to schedule an Electronic Waste pick-up by 5:00 PM the day prior to the
Customer's regular Collection day.
Customer may place up to five (5) items out for Collection per collection event. Multi-Family Customers
are entitled to three (3) collection events per dwelling unit per Rate Period at no additional charge.
Contractor shall not be required to collect oversized items of Electronic Waste that cannot be handled by
one (1) person.
June 9, 2020 Item #10 Page 189 of 286
8. SHARPS WASTE COLLECTION
Contractor shall provide for Sharps Waste generated by Multi-Family Customers at no charge through a
container placed at up to three (3) locations at City facilities designated by the City. Contractor will replace
the container at the City facility up to ten (10) times each Rate Period, on an as-needed basis. Contractor
shall also make available to Customers a sharps by mail service from a third party provider through its
website, at the rate established by the third party provider from time to time.
June 9, 2020 Item #10 Page 190 of 286
EXHIBIT B3:
COMMERCIAL SERVICES
June 9, 2020 Item #10 Page 191 of 286
1. Recyclable Materials Collection
Contractor shall Collect Recyclable Materials placed in Contractor-provided Containers from Commercial
Customers subscribing to Recyclable Materials Collection service and Transport all Recyclable Materials
to the Approved Recyclable Materials Processing Facility for Processing.
Containers: Carts, Bins, Drop Boxes, and Compactors
Container Sizes: 32-, 64-, and 96-gallon Carts (or comparable size approved by the City);
1-, 2-, 3-, 4-, 5-, and 6- cubic yard Bins; 3 cubic yard Split-Bins;
2-, 3-, and 4-cubic yard Bin Compactors, and,
7-, 20-, 30-, and 40- cubic yard Drop Boxes; or
Customer Owned Compactors
{Note to Proposers: The City’s desire is to have a range of box sizes available,
but contractor may propose the specific box sizes.}
As requested by Customer.
Service Frequency: Up to six (6) times per week but not less than one (1) time per week, as requested
by Customer; unless the Customer has received a Collection frequency waiver for
Recyclable Materials in accordance with Section 4.11.2, in which case service
frequency shall be not less than one (1) time per fourteen (14) days
Service Location: Curbside or other Customer-selected service location at the Commercial
Premises; additional charges may apply if the service location is greater than
fifteen (25) feet from the nearest point that a Collection Vehicle can access from
a paved surface.
Acceptable Materials: Recyclable Materials
Prohibited Materials: Organic Materials, Solid Waste, Excluded Waste
Additional Service: Special pick-ups requested by a Customer, on days other than their regularly
scheduled Collection day, will be available at an approved additional charge. Such
additional picks-ups can be scheduled equating to up to six (6) days per week total
service.
Other Requirements: Contractor shall make contact with each and every Commercial Customer in
advance of the Commencement Date to determine appropriate Container sizes
and service frequency. Contractor shall deliver Recyclable Materials containers to
each and every Commercial Customer at the same time that the contractor
delivers Solid Waste Containers, unless that Commercial Customer is exempted
from Recyclable Materials services by the City, or has demonstrated to the City
that it is diverting Recyclable materials through subscription with another City-
approved hauler, or other City-approved method.
June 9, 2020 Item #10 Page 192 of 286
Contractor shall open and close gates, push and/or pull Containers, lock and
unlock Containers, or perform other services as reasonably necessary to access
and empty Containers (additional charge may apply).
A push/pull of Containers up to twenty-five (25) feet from the
enclosure/Container location to the Collection vehicle will be provided at no
additional charge (push up to 25 feet then return.)
Contractor may refuse to Collect an Recyclable Materials Container that contains
prohibited container contaminants in the manner and subject to the limits
described in Section 4.12 and provided that Contractor leaves a Non-Collection
Notice in accordance with Section 5.3.B of this Agreement. Contractor shall keep
a record of all Non-Collection Notices and Courtesy Notices issued to Customers,
recording at a minimum the date, Customer address and material type of the
Container in question.
2. Organic Materials Collection
Contractor shall Collect Organic Materials placed in Contractor-provided Containers not less than one (1)
time per week from Commercial Customers and Transport all Organic Materials to the Approved
Commercial Organic Materials Processing Facility for Processing. Nothing in this Section 1 of Exhibit B3
shall prevent other Persons from also providing similar services to businesses in the City, and charging for
such service, provided that such Persons maintain a City-issued permit granting such right, in accordance
with the City’s Municipal Code.
Containers: Carts, Bins, Compactors
Container Sizes: 32-, 64-, and 96-gallon Carts (or comparable size approved by the City);
1-, 1.5-, and 2- cubic yard Bins; and,
Customer-owned Compactors
As requested by Customer.
Service Frequency: Up to six (6) times per week but not less than one (1) time per week, as requested
by Customer.
Service Location: Curbside or other Customer-selected service location at the Commercial
Premises; additional charges may apply if the service location is greater than
fifteen (25) feet from the nearest point that a Collection Vehicle can access from
a paved surface.
Acceptable Materials: Organic Materials (including Yard Trimmings and Food Scraps)
Prohibited Materials: Recyclable Materials, Solid Waste, Excluded Waste
Additional Service: Special pick-ups requested by a Customer, on days other than their regularly
scheduled Collection day, will be available at an approved additional charge. Such
additional picks-ups can be scheduled equating to up to six (6) days per week total
service
Other Requirements: Contractor shall make contact with each and every Commercial Customer in
June 9, 2020 Item #10 Page 193 of 286
advance of the Commencement Date to determine appropriate Container sizes
and service frequency. Contractor shall deliver Organic Materials containers to
each and every Commercial Customer at the same time that the contractor
delivers Solid Waste Containers, unless that Commercial Customer is exempted
from Organic Materials services by the City, or has demonstrated to the City that
it is diverting Organic Materials through subscription with another City-approved
hauler, or other City-approved method.
Contractor shall open and close gates, push and/or pull Containers, lock and
unlock Containers, or perform other services as reasonably necessary to access
and empty Containers (additional charge may apply). A push/pull of Containers
up to twenty-five (25) feet from the enclosure/Container location to the
Collection vehicle will be provided at no additional charge (push up to 25 feet
then return).
Contractor may refuse to Collect an Organic Materials Container that contains
prohibited container contaminants in the manner and subject to the limits
described in Section 4.12 and provided that Contractor leaves a Non-Collection
Notice in accordance with Section 5.3.B of this Agreement. Contractor shall keep
a record of all Non-Collection Notices and Courtesy Notices issued to Customers,
recording at a minimum the date, Customer address and material type of the
Container in question.
3. Solid Waste Collection
Contractor shall Collect Solid Waste placed in Contractor-provided Containers not less than one (1) time
per week from Commercial Customers and Transport all Solid Waste to the Designated Disposal Facility
for Disposal.
Containers: Carts, Bins, Drop Boxes, Compactors.
Container Sizes: 32-, 64-, and 96-gallon Carts (or comparable size approved by the City);
1-, 2-, 3-, 4-, 5-, and 6- cubic yard Bins; 3 cubic yard Split-Bins;
2-, 3-, and 4-cubic yard Bin Compactors, and,
7-, 20-, 30-, and 40- cubic yard Drop Boxes; or
Customer Owned Compactors
{Note to Proposers: The City’s desire is to have a range of box sizes available,
but contractor may propose the specific box sizes.}
As requested by Customer.
Service Frequency: Up to three (3) times per week but not less than one (1) time per week, as
requested by Customer.
Service Location: Curbside or other Customer-selected service location at the Commercial
Premises; additional charges may apply if the service location is greater than
fifteen (25) feet from the nearest point that a Collection Vehicle can access from
a paved surface.
Acceptable Materials: Solid Waste
June 9, 2020 Item #10 Page 194 of 286
Prohibited Materials: Recyclable Materials, Organic Materials, Excluded Waste
Additional Service: Special pick-ups requested by a Customer, on days other than their regularly
scheduled Collection day, will be available at an approved additional charge. Such
additional picks-ups can be scheduled equating to up to six (6) days per week total
service
Other Requirements: Contractor shall make contact with each and every Commercial Customer in
advance of the Commencement Date to determine appropriate Container sizes
and service frequency.
Contractor shall open and close gates, push and/or pull Containers, lock and
unlock Containers, or perform other services as reasonably necessary to access
and empty Containers (additional charge may apply). A push/pull of Containers
up to twenty-five (25) feet from the enclosure/Container location to the
Collection vehicle will be provided at no additional charge (push up to 25 feet
then return).
4. Commercial Container Sharing and Split-Containers
In special circumstances, for Customers with significant space limitations and upon approval by the City
Contract Manager and the Contractor, the Contractor shall permit Commercial Customers to share
Discarded Materials service with other geographically proximate Commercial Customers. Such shared
service shall be performed, and billed, as if it were being provided to a single Customer, with the exception
that Contractor shall require all Customers sharing a single service account to identify a “Primary
Responsible Party” which will serve as the singular point of contact for communication and billing from
Contractor and the City, along with a list of all addresses with which the Primary Responsible Party will
share service. Additionally, the Contractor shall, upon Customer request, provide Split-Bins for Customers
with space limitations, and shall Collect, Transport, Transfer, and Process or Dispose of each material type
in accordance with this Agreement.
{Note to proposers: The specific types of Split-Containers and the materials to be Collected have not been
specified here. Proposers may include specific types of Split-Containers for consideration, and upon City’s
selection, the types of Split-Containers may be further specified in the Agreement.}
June 9, 2020 Item #10 Page 195 of 286
This page intentionally left blank
June 9, 2020 Item #10 Page 196 of 286
EXHIBIT B4:
CITY SERVICES
June 9, 2020 Item #10 Page 197 of 286
1. Commercial Customer Services to City Facilities
Contractor shall Collect Recyclable Materials, Organic Materials, and Solid Waste, from City facilities in
the same manner as those services are provided to Commercial Customers, and shall provide designated
personnel in accordance with Section 5.7.E of this Agreement. Contractor shall provide service to all
existing City facilities identified in Exhibit B5 as well as any future City facilities established after the
Commencement Date. Contractor shall provide these services at no additional cost to the City. City facility
service as described by this Section shall include unlimited Drop Box Collection service, and periodic Bulky
Item Collection. Contractor shall deliver Drop Boxes within twenty-four (24) hours of City request.
Contractor shall Collect, empty and return Drop Boxes within twenty-four (24) hours of City request.
Contactor shall remove and not return Drop-Boxes within twenty-four (24) hour of City request.
2. Emergency Services
Contractor shall provide emergency services (i.e., special collections, transport, processing and disposal)
at the request of the City Contract Manager in the event of major accidents, disruptions, or natural
calamities. Contractor shall be capable of providing emergency services within twenty-four (24) hours of
notification by the City Contract Manager or as soon thereafter as is reasonably practical in light of the
circumstances. For any services which exceed the scope of services under this Agreement, Contractor shall
be entitled to compensation at the emergency service Rates approved under this Agreement. The City
shall have discretion in the method of such compensation between direct payments by the City and
allowing such costs to be considered in the adjustment of Rates for the following Rate Period.
3. Annual Pharmaceutical Collection Events
Contractor shall provide up to two (2) free Pharmaceutical Collection Events per year, including the
staffing, disposal and transportation of Pharmaceutical Waste as requested by the City Contract Manager.
The City will provide the location for the event(s). City or Contractor may request a modification of the
scope of services related to Pharmaceutical Waste collection, or terminate this program, where prohibited
or rendered impractical by current or future federal, state or local laws and regulation
4. Annual Shredding Event
For Residential Service Customers, Contractor shall provide at least two (2) annual shredding event free
of charge. Contractor may require proof of residency at such events. The location of the event shall be
within the City of Carlsbad and shall occur in the month specified by the City Contract Manager. The limit
of shredded material accepted will be three standard office storage boxes per Residential Premises.
Where appropriate, this limit may be waived by Contractor on a case by case basis.
June 9, 2020 Item #10 Page 198 of 286
5. Provision of Compost and Mulch Product
A. Bulk Compost. Contractor shall make available to City at least one thousand (1,000) cubic yards of bulk
compost per Agreement Year for use in City parks and facilities at no additional cost to the City or
Customers. City will notify Contractor as to the City’s needs for delivery of finished compost throughout
the Agreement Year. Contractor shall deliver compost within five (5) Business Days of a request of City to
any accessible location within City limits at no additional cost to City. If City does not take delivery of
compost made available by Contractor within thirty (30) calendar days of the end of the Agreement Year,
Contractor’s obligation to deliver compost for said Agreement Year shall be deemed to be satisfied. Any
of the one thousand (1,000) cubic yards bulk compost allotment that is not requested by the City during
the Agreement Year shall not carry over into the next Agreement Year. Upon request Contractor shall
provide City with compost lab results and specifications.
B. Bulk Mulch. Contractor shall make available to City at least one thousand (1,000) cubic yards of bulk
mulch per Agreement Year for use in City parks and facilities at no additional cost to City or Customers.
The mulch specifications shall be approved in advance by City. The mulch shall be natural color (uncolored)
and made from recycled urban wood waste. City will notify Contractor as to the City’s needs for delivery
of finished mulch throughout the Agreement Year. Contractor shall deliver mulch within five (5) Business
Days upon request of City to any accessible location within City limits at no additional cost to City. If City
does not take delivery of mulch made available by Contractor within thirty (30) calendar days of the end
of the Agreement Year, Contractor’s obligation to deliver compost for said Agreement Year shall be
deemed to be satisfied. Any of the one thousand (1,000) cubic yards bulk mulch allotment that is not
requested by the City during the Agreement Year shall not carry over into the next Agreement Year.
C. Compost Give-Away Events. Contractor shall distribute an annual total of at least one thousand (1,000)
one (1) cubic-foot bags of compost to City residents at no additional cost to the City or Customers at two
(2) public compost give-away events per Agreement Year (such that Contractor shall provide at least five
hundred (500) bags per event). The location, date, and time of such events shall be mutually agreed upon
by Contractor and the City Contract Manager, and may be held in conjunction with other City-approved
events. Contractor shall deliver the bagged compost to the agreed-upon event location at no cost to City.
Contractor shall provide at least one (1) attendant for at least six (6) hours per event.
D. SB 1383 Procurement. Contractor agrees that all compost or mulch provided through this Agreement
shall comply with the municipal procurement requirements of SB 1383, including being generated from
California Organic Waste Products, as defined by SB 1383 for each applicable material type.
6. News Media Relations.
Contractor shall notify the City Contract Manager by e-mail of all requests for news media interviews
related to the Collection Services program within twenty-four (24) hours of Contractor’s receipt of the
request. Before responding to any inquiries involving controversial issues or any issues likely to affect
June 9, 2020 Item #10 Page 199 of 286
participation or Customer perception of services, Contractor will discuss Contractor’s proposed response
with the Contract Administrator.
Copies of draft news releases or proposed articles related to the provision of Collection Services under
this Agreement shall be submitted to City for prior review and approval at least five (5) Business Days in
advance of provision to such Persons, except where Contractor is required by any law or regulation to
submit materials to any regulatory agency in a shorter period of time, in which case Contractor shall
submit such materials to City simultaneously with Contractor’s submittal to such regulatory agency.
Copies of articles resulting from media interviews or news releases shall be provided to the City within
five (5) Business Days after publication.
7. Waste Generation, Characterization, and Pilot Studies.
Contractor acknowledges that City, CalRecycle, or other governmental agencies may wish to perform
generation and characterization studies periodically with respect to materials covered under this
Agreement. Contractor agrees to participate and cooperate with City and its agents and to perform
studies and data collection exercises, as needed, to determine weights, volumes and composition of
materials generated, Disposed, Diverted or otherwise Processed. If City requires Contractor to participate
in such a study, Contractor and City shall mutually agree on the scope of services to be provided by
Contractor and the amount of compensation, if any, that the City will pay to Contractor for such
participation. In any event, Contractor shall permit and in no way interfere with the Collection and
handling of the subject materials by other Persons for such purposes.
Contractor that acknowledges that the County, in coordination with the City, is required by SB 1383 to
conduct Organic Waste and Edible Food capacity planning studies. The Contractor shall provide
information to the City as needed for the City’s participation in such capacity planning studies. This
information and/or participation may include, but is not limited to, conducting or supporting waste
characterization studies; providing information regarding existing and potential new or expanded capacity
in the Contractor’s operations for the Collection, Transport, or Processing of Recyclable and Organic
Materials; and any other information deemed necessary by the City or County for purposes of the study.
The Contractor shall respond to any request for information from the City within thirty (30) days, unless
another timeframe is otherwise specified or authorized by the City.
Contractor acknowledges that the City may, wish to conduct and/or participate in pilot studies related to
the Customers and materials that are the subject of this Agreement. If City requires Contractor to
participate in any such a pilot study, Contractor and City shall mutually agree on the scope of services to
be provided by Contractor and the amount of compensation, if any, that the City will pay to Contractor
for such participation. In any event, Contractor shall permit and in no way interfere with the Collection
and handling of the subject materials by other Persons for such purposes.
June 9, 2020 Item #10 Page 200 of 286
EXHIBIT B5:
CITY FACILITY SERVICE LEVELS, LOCATIONS, AND
SPECIAL EVENTS
June 9, 2020 Item #10 Page 201 of 286
Contractor will collect Recyclable Materials, Organic Materials, and Solid Waste from City facilities
(including parks) in the same manner as those services are provided to Commercial Customers. Contractor
shall provide service to all City facilities, present and future, at no additional cost to the City. Contractor
shall provide special event services pursuant to Section 4.5 of the Agreement.
{List of facilities to be inserted in final agreement}
In addition to regular scheduled Collection services, Contractor shall provide, upon request, temporary
Drop Box services to all City facilities at no additional cost to the City. Contractor shall deliver source
separated yard trimmings collected from City facilities, parks, and Clean Up operations in Drop Boxes to
the Approved Transfer Facility for transfer to the Approved Organic Materials Processing Facility.
June 9, 2020 Item #10 Page 202 of 286
This page intentionally left blank
June 9, 2020 Item #10 Page 203 of 286
EXHIBIT C:
PUBLIC EDUCATION AND OUTREACH
REQUIREMENTS
June 9, 2020 Item #10 Page 204 of 286
1. General Administration
The City has places the utmost importance on effective public outreach and education in helping residents
and businesses fully understand options for and benefits of source reduction, reuse, Recycling, and
Composting. General provisions for public education and outreach are as follows:
A. Prior to the Commencement Date and by October 1 of each following year during the Term of this
Agreement, Contractor shall develop and submit an annual public education plan to promote the
programs designed by the City and performed by Contractor under this Agreement. Each public
education plan shall specify the target audience for services provided, include upcoming
promotions for ongoing and known special events, identify program objectives, individual tasks,
public education materials to be distributed, opportunities for expanded partnerships, a timeline
for implementation, and an itemized description of how Contractor’s annual public education
budget (described in Section 3 of this Exhibit C) will be spent. The City Contract Manager shall be
permitted to provide input on each annual public education plan, and the plan shall not be
finalized or implemented without approval of the City Contract Manager. Each plan’s
implementation success shall be measured based on agreed-upon metrics for the impact of each
plan and/or campaign (e.g. changes in diversion, contamination, social media engagement rates,
click-through rates, etc. resulting from the education and/or outreach efforts). Contractor shall
meet with the City Contract Manager to present and discuss the plan, review the prior year’s
activities (including sponsorships and services provided to City-sponsored events) and determine
whether community activities and the provision of services to the City reflect the needs of City
staff and the City Council. City Contract Manager shall be allowed up to thirty (30) calendar days
after receipt to review and request modifications. The City Contract Manager may request, and
Contractor shall not unreasonably deny, modifications to be completed prior to approving the
plan. Contractor shall have up to fifteen (15) Business Days to revise the plan in response to any
requested changes by the City Contract Manager. Any further delays may result in Liquidated
Damages for failure to perform education and outreach activities as identified in Exhibit F. Each
Business Day that the plan is late shall count as a single event/activity.
B. Upon request from the City Contract Manager, City Contract Manager and Contractor’s Contract
Manager shall meet up to one (1) time per month to discuss services, outreach, and educational
campaigns and request changes or adaptations to the annual public education plan. The City will
be responsible, in its sole discretion and subject to budgetary constraints, to prepare all public
education materials and may request that materials be reviewed by Contractor prior to
production. If requested, Contractor shall review and comment on the materials within two (2)
weeks of request from the City.
C. Contractor shall distribute instructional information, public education, and promotion materials
in advance of, and following, commencement of services. This shall entail, at a minimum,
distributing program literature to all Customers at the Commencement of the Agreement as well
as to any new Customer during the Agreement Term. Contractor shall use multiple media sources
including print, radio television, electronic/ social media, and events to notify Customers of the
change in their service provider, if applicable, and to highlight new program offerings. Transition
and ongoing sector-specific collateral materials shall be distributed. For any public education
June 9, 2020 Item #10 Page 205 of 286
materials not produced by the City, the Contractor shall submit all draft materials to City Contract
Manager for review and approval.
D. All City facilities shall receive any and all public education and outreach materials and services
provided to the Commercial sector. Contractor shall provide all printed public education materials
to City offices and facilities to have available for the public that visits those facilities and shall
replenish the materials as requested by the City Contract Manager.
E. Bill inserts shall be designed and produced by the City; and the Contractor shall responsible for
printing and distributing the billing inserts to all Customers. Contractor shall provide electronic
bill inserts (or separate email attachments) to Customers who are billed electronically, and paper
bill inserts to Customers who receive paper bills. For Customers receiving electronic bills,
Contractor agrees to distribute brochures, newsletters, or other information developed by the
City as attachments to Customer invoices. Electronic bill inserts/attachments must be readily
available for the Customer to view upon receipt of the invoice (attachments shall not be provided
as links). Upon City request for billing inserts, Contractor shall comply with such request during
its next billing cycle for the targeted Customer group, if specified. Contractor shall perform this
service with no additional requirement for compensation.
F. Contractor shall develop a website specific to its operations in the City, with a section specific to
City programs and Customers, that will be used to post educational materials for download,
highlight program successes, and provide Diversion statistics. The Contractor’s City specific
website shall also include links to relevant web pages of the City’s website where further
information can be found.
2. Public Education and Outreach Team
To best achieve the highest possible level of public education and awareness, Contractor has proposed to
employ at least one (1) full-time equivalent staff member(s) {Proposer to insert number of proposed public
education staff, if different} to coordinate and implement all public education and outreach activities
required by this Agreement. The public education and outreach staff shall, at a minimum, perform the
following tasks:
1. Work to develop partnerships with and incorporate City program and educational
activities into Contractor activities, and vice versa;
2. Prepare proposals and presentations to City entities;
3. Participate and represent Contractor in community activities;
4. Oversee Customer satisfaction of all program services, as described in Exhibit B to the
Agreement;
5. Coordinate and produce the annual education and outreach plan required by Section 1
of this Exhibit C to the Agreement;
6. Coordinate implementation of the annual public education plan;
June 9, 2020 Item #10 Page 206 of 286
7. Perform annual visits to identify the service needs of every Customer, other than Single-
Family Customers, by conducting “Diversion opportunity assessments” of Customer
locations and facilities;
8. Manage follow-up Diversion opportunity assessments for businesses to conduct a more
comprehensive investigation and educational process after the initial review;
9. Provide all Customers with appropriate educational information necessary to make
informed, environmentally-forward decisions relative to waste reduction, reuse, and
Diversion activities.
10. Maximize the opportunity for initial and sustained program success by seeking to
identify a "champion" (ideally a senior manager) at each Commercial and Multi-Family
Customer who will serve as a primary contact and advocate for Diversion programs
within the Customer’s organization;
11. Assist in planning service needs for special events and large venues with a focus on
reducing the Disposal of materials resulting from such events or venues; and,
12. Create and distribute reports as required under this Agreement and/or requested by
Agency Contract Manager.
3. Annual Budget
In addition to staffing expenses, Contractor shall spend, for the public education and outreach services
described in this Exhibit C, no less than two hundred thousand ($200,000) in Rate Period One. {Note to
Proposers: This amount may be revised during negotiations, following the selection of the final service
package.} The Rate Period One budget shall be adjusted annually thereafter by the Annual Percentage
Change in CPI-U (as defined in Exhibit E). Annually, Contractor shall provide to the City Contract Manager
for review and approval a detailed description of how such budget will be spent as part of the annual
public education plan to be developed in accordance with Section 1 of this Exhibit C. At the conclusion of
each Rate Period, any unused funds shall be transferred to the City. Contractor shall be prohibited from
expending such funds without the prior written approval of the City Contract Manager. Any expenditures
not approved by the City in advance shall neither be counted in Contractor’s annual public education and
outreach budget, nor be recovered through Rates.
4. Sector-Specific Activities
The following tables present the public education and outreach activities to be performed by Contractor
each Rate Period as minimum requirements under this Agreement, as proposed by Contractor in
Contractor’s Proposal. Each Customer typefaces unique Discarded Materials management opportunities
and challenges; therefore, Contractor shall develop targeted, sector-specific educational materials and
perform outreach activities as described for each Customer Type. {Note to Proposers: The following tables
June 9, 2020 Item #10 Page 207 of 286
are presented as an EXAMPLE ONLY, and will be replaced by Contractor’s proposed Public Education and
Outreach Plan, which will be submitted as part of Contractor’s Proposal.}
June 9, 2020 Item #10 Page 208 of 286
Public Education and Outreach | All Sectors - EXAMPLE
All printed materials also to be posted to the Company’s website.
The following general public education and outreach materials shall each be produced for the benefit of all Customer types that receive Collection service
from the Contractor.
Activity Description Distribution/Frequency
Newspaper Advertisement Distribute a City-produced newspaper advertisement that explains all programs
that will be offered under the new Agreement.
One (1) time at beginning of
the Agreement (20-30 days
prior to contract start date).
Public Service Announcement
(PSA)
Distribute a City-produced PSA for local radio and cable television broadcast
describing the new programs under the Agreement.
One (1) time at beginning of
the Agreement (20-30 days
prior to contract start date).
Press Release Distribute a City-produced press release to advertise and promote all programs,
with particular focus on any new programs that will be offered to each sector
(Single-Family, Multi-Family, Commercial, City facilities).
One (1) time at beginning of
the Agreement (20-30 days
prior to contract start date).
Truck-Side Advertising Implement a City-wide truck-side advertising campaign to educate the public
about Contractor’s programs under this Agreement. Campaign content and
messaging shall be created by the City, and each campaign should be
coordinated, in terms of both message and timing, with the theme of the
quarterly newsletters produced by the City and distributed by Contractor.
Contractor shall produce and install truck-side signage for each side of each
vehicle it operates in performing services under this Agreement.
Quarterly.
June 9, 2020 Item #10 Page 209 of 286
Public Education and Outreach | Single-Family & Townhouse Education and Outreach Activities - EXAMPLE
All printed materials also to be posted to the Company’s website.
{Note to proposers: This table is provided as an example only. The types of educational materials, content, and distribution methods and frequency are
subject to change in the final agreement.}
Activity Description Distribution/Frequency
New Programs Mailing Produce and Distribute a City-designed initial mailing to Single-Family
Customers, which may include content such as explaining the program changes
in the new Agreement; changes from the existing Collection programs to new
programs; regulatory requirements, including SB 1383; and, the effective date of
the change. Contractor shall include its holiday schedule and the Residential
Recycling and expanded services guide.
One (1) time at beginning of
the Agreement (45-60 days
prior to Commencement
Date) via direct mail.
Recycling Guide Produce and Distribute a City-designed “Recycling guide” specific to Single-
Family Customers. This guide shall include information on Collection
methodologies, set out instructions, set out schedule, contact information, and
acceptability and necessary preparation of materials for all Single-Family
programs described in Exhibit B-1. A section of the guide will specifically address
proper methods of handling and Disposal of Hazardous Wastes.
Affixed (inside plastic bag, zip-
tied to handle) to every Single-
Family and Townhouse
Recyclable Materials Cart
delivered prior to the
Commencement Date, and
thereafter to all new
Customers.
By direct mail annually
thereafter to each Single-
Family and Townhouse
Customer
Neighborhood Group & HOA
Visits
Upon City request, visit homeowner associations and other neighborhood
groups and associations to promote and explain the Recycling programs included
in this Agreement.
At City Contract Manager or
Customer request.
June 9, 2020 Item #10 Page 210 of 286
Activity Description Distribution/Frequency
Quarterly Bill Insert Produce and Distribute a City-designed quarterly bill Inserts that creatively
inform Residential Customers about such topics as availability of Bulky Item pick-
ups, home Composting, proper handling of Household Hazardous Waste, E-
Waste, and U-Waste, other environmental conservation topics statistics, trends,
and facts about programs performed under this Agreement (i.e. material
Collected, Tonnage, year over year increase/decrease, markets for material
Collected, what each material is Recycled into, and the importance of buying
Recycled). Contractor’s annual public education plan shall define a theme for
each Quarterly bill insert.
One (1) time per quarter
included in each mailed
Customer bill and
downloadable from electronic
Customer bills.
Corrective Action Notices Produce and distribute a Single-Family Customer oriented Non-Collection
Notice, and Courtesy Notice for use in instances where the Customer includes
prohibited materials in a Container or fails to properly prepare or set-out
Containers.
As needed.
Seasonal Program Notifications Provide written notification to all Single-Family Customers advertising each
scheduled neighborhood clean-up day pursuant to Exhibit B1.5, Christmas tree
Collections pursuant to Exhibit B1.7, and any other seasonal or periodic
program(s). The notification shall inform Customers of the schedule, acceptable
and prohibited materials, and set-out requirements for the program.
At least fourteen (14) calendar
days prior to event via direct
mail.
Website Contractor shall prepare a “Single-Family Customer” section of its website where
it will present Customers with “how-to” information for participating in
Contractor-provided programs including proper Container set-outs, and provide
Single-Family Customers with links to click on for additional resources. All other
Single-Family educational materials specified in this Section shall be posted on
this section of Contractor’s website in PDF and/or video format. The website
shall also publish the current Rates charged to Single-Family Customers within
the City.
At least thirty (30) calendar
days prior to Commencement
Date.
Updated no less than
quarterly.
June 9, 2020 Item #10 Page 211 of 286
Activity Description Distribution/Frequency
Mandatory Recycling and
Organics Outreach Activities
Produce and Distribute City-produced outreach materials containing
information to assist City with outreach compliance for various Applicable Laws
related to Mandatory Recycling and Organics, including but not limited to SB
1383. .
One (1) time annually
June 9, 2020 Item #10 Page 212 of 286
Public Education and Outreach | Multi-Family Education and Outreach Activities - EXAMPLE
All printed materials also to be posted to the Company’s website.
Description Purpose Distribution/Frequency
New Programs Mailing Produce and Distribute a City-produced initial mailing to all Multi-Family
Dwelling Units within City explaining the program changes in the new
Agreement; changes from the existing Collection programs to new programs;
new regulatory requirements, including SB 1383; and, the effective date of the
change.
One (1) time at beginning of
the Agreement (45-60 days
prior to Commencement Date)
via direct mail to each Multi-
Family Dwelling Units in City.
Recycling Guide Produce and Distribute a City-produced “Recycling Guide” specific to Multi-
Family Customers, and updated versions of the guide as needed. This guide
shall include information such as Collection methodologies, set out instructions,
contact information, and acceptability and necessary preparation of materials
for all Multi-Family programs described in Exhibit B2. A section of the guide will
specifically address proper methods of handling and Disposal of Hazardous
Wastes.
One (1) time at beginning of
the Agreement (20-30 days
prior to Commencement Date)
and as needed via direct mail
to each Multi-Family Dwelling
Units in City.
June 9, 2020 Item #10 Page 213 of 286
Description Purpose Distribution/Frequency
Technical Assistance: Diversion
Opportunity Assessments
Offer Diversion opportunity assessments at least one (1) time annually to each
and every Multi-Family Customer to meet with the property manager or owner
of Multi-Family Premises to promote Recyclable and Organic Materials
Collection and replenish Move-in Kits as needed by each Multi-Family Premises.
Additionally, upon City or Customer request, Contractor shall perform complete
walk-throughs of each facility/complex and discuss the internal and external
layout with Manager; identify areas of generation, collection, noting areas for
improved infrastructure, placement, or educational materials. Contractor shall
also identify major components of the waste stream by location and identify
special wastes or sourced separated materials potentials. Contractor shall then
make recommendations for waste reduction, contamination prevention, and
service level or frequency modification. Finally, Contractor shall coordinate with
customer service and operations to implement service level changes, as
needed.
Further, Contractor shall prepare and submit reports to City that documents
Customers targeted monthly, the existing service levels, recommendations
made, and the outcome of technical assistance provided.
Offer in-person meetings to
each and every Multi-Family
Customer conducted one (1)
time per year, plus follow-up
meetings with individual
Customers, as needed.
Move-In Kits Produce and Distribute Move-in Kits for property managers and owners of
Multi-Family Premises to provide new tenants. Move-in Kits shall include, at a
minimum, a Multi-Family Recycling guide, an In-Home Recycling Container, and
stickers or refrigerator-magnets that clearly define the accepted and prohibited
materials in the Recycling program.
Distributed during technical
assistance diversion
opportunity assessments.
Workshops Offer and respond to requests for on-site meetings and workshops. Contractor
shall conduct workshops for Customers (when requested) that will show
property managers and residents, in a hands-on interactive format, how to use
the Recycling and Organics program and will provide resources for additional
information and support.
At Customer’s request.
June 9, 2020 Item #10 Page 214 of 286
Description Purpose Distribution/Frequency
“How-to” Guide:
Electronic, Universal and Excluded
Waste
Produce and Distribute a City designed “how-to” guide on proper Recycling,
handling and Disposal of Household Hazardous Waste, E-Waste, and U-Waste
directly to tenants of Multi-Family Premises. Contractor may arrange for
distribution to each Dwelling Unit a flyer, door hanger, or other public education
piece by coordinating with the Owner or property manager of the Premises.
One (1) time per year via direct
mail or door-to-door.
Christmas Tree Collection
Notification
Produce and Distribute a City-designed written notification to each Multi-Family
property manager/owner advertising the availability of holiday tree Collection
services. The notification shall inform managers of the schedule, accepted and
prohibited materials, Collection method options, and set-out requirements for
the program. The notification shall include the Contractor contact information
for Multi-Family Customers to contact to discuss schedule and designated
Collection location. The format and content of the notification shall be
approved by the City Contract Manager.
At least fourteen (14) calendar
days prior to event via direct
mail, e-mail, or in-person.
Website Contractor shall prepare a “Multi-Family Customer” section of its website
where it will present “how-to” information for participating in Contractor-
provided programs including proper Container set-outs, and provide Multi-
Family Customers with links to click on for additional resources. All other Multi-
Family educational materials specified in this Exhibit shall be posted on this
section of Contractor’s website in PDF and/or video format. The website shall
also publish the current Rates charged to Multi-Family Customers within the
City. The website shall also provide property managers of Multi-Family
Premises with an opportunity to request “Diversion opportunity assessments”,
additional Move-in Kits, or additional education materials to provide to tenants.
At least thirty (30) calendar
days prior to Commencement
Date.
Updated no less than
quarterly.
Mandatory Recycling and Organics
Outreach Activities
Contractor shall disseminate outreach materials containing information to
assist City with outreach compliance for various Applicable Laws related to
Mandatory Recycling and Organics, including but not limited to AB 341, AB
1826, and SB 1383. .
One (1) time annually
June 9, 2020 Item #10 Page 215 of 286
Description Purpose Distribution/Frequency
Educational Materials for
Employees/Tenants
Contractor shall provide Commercial and Multi-Family property
managers/owners with City-produced public education materials, required by
SB 1383, for their distribution to all employees, contractors, tenants, and
Customers of the property or business. The public education materials shall
include, at a minimum, information about Organic Waste recovery
requirements and proper sorting of Discarded Materials. Multi-Family property
managers/owners may request these materials more frequently if needed to
comply with the SB 1383 requirement to provide information to new tenants
before or within 14 days of occupancy.
One (1) time annually; or more
frequently upon Customer
request.
June 9, 2020 Item #10 Page 216 of 286
Public Education and Outreach | Commercial Education and Outreach Activities - EXAMPLE
All printed materials also to be posted to the Company’s website.
Description Purpose Distribution/Frequency
New Programs Mailing Prepare and distribute an initial mailing to all Commercial Customers within the
City explaining the program changes in the new Agreement; changes from the
existing Collection programs to new programs; and, the effective date of the
change.
One (1) time at beginning of the
Agreement (45-60 days prior to
Commencement Date) via direct
mail.
Recycling Guide Contractor shall produce a “Recycling guide” specific to Commercial Customers
and update the guide as needed. This guide shall include information on
Collection methodologies, set out instructions, contact information, and
acceptability and necessary preparation of materials for all Commercial
programs described in Exhibit B3. A section of the guide will specifically address
proper methods of handling and Disposal of Hazardous Wastes.
One (1) time at beginning of the
Agreement (20-30 days prior to
Commencement Date) and as
needed via direct mail.
Distributed during Diversion
opportunity assessments.
“How-to” Flyer: Recyclable
Materials
Prepare and distribute a “how-to” brochure explaining the Recycling Materials
Collection programs for each general business type (restaurants,
office/Commercial buildings, strip malls, and large Commercial businesses).
One (1) time at beginning of the
Agreement (20-30 days prior to
contract start date) via direct
mail.
Distributed during Diversion
opportunity assessments.
“How-to” Flyer: Organic
Materials
Prepare and distribute a flyer describing the Organic Materials Collection
services available and how to prepare Organic Materials for Collection for each
general business type (restaurants, office/Commercial buildings, strip malls, and
large Commercial businesses).
One (1) time at beginning of the
Agreement (20-30 days prior to
contract start date) via direct
mail.
Distributed during Diversion
opportunity assessments.
June 9, 2020 Item #10 Page 217 of 286
Description Purpose Distribution/Frequency
Technical Assistance: Diversion
Opportunity Waste
Assessments
Offer Diversion opportunity assessments at least one (1) time annually to each
and every Commercial Customer to promote Recyclable and Organic Materials
Collection and replenish Recycling guides and Recycling and Organics posters as
needed by each Customer.
Additionally, Contractor shall perform complete walk-throughs of each
facility/complex and discuss the internal and external layout with Manager;
identify areas of generation, Collection, noting areas for improved
infrastructure, placement, or educational materials. Contractor shall also
identify major components of the waste stream by location and identify special
wastes or sourced separated materials potentials. Contractor shall then make
recommendations for waste reduction, contamination prevention, and service
level or frequency modification. Finally, Contractor shall coordinate with
customer service and operations to implement service level changes, as needed.
Further, Contractor shall prepare and submit reports to City documenting
Customers targeted quarterly, the existing service levels, recommendations
made, and the outcome of technical assistance provided.
Offer one (1) time annually during
in-person meetings with each and
every Commercial Customer, plus
follow-up meetings with
individual Customers, as required.
Recycling and Organics Posters Produce and distribute (during Diversion opportunity assessments) laminated
Recycling and Organics posters that provide graphic illustrations of acceptable
and prohibited materials within each program.
Distributed during Diversion
opportunity assessments.
Quarterly Bill Inserts Prepare and distribute quarterly bill inserts that creatively inform Commercial
Customers about such topics as: cost savings available from source reduction,
reuse, and Recycling; tips for overcoming common operational challenges
businesses have with Recycling and Organics programs; the environmental
benefits of buying Recycled-content products and statistics, trends, and facts
about programs performed under this Agreement (i.e. Collected, Tonnage, year
over year increase/decrease, markets for material Collected, what each material
is Recycled into) as appropriate. Contractor’s annual public education plan shall
define a theme for each quarterly insert.
One (1) time per quarter via direct
mail to each Commercial
Customer in City. {Note to
Proposers: City recognizes that
billing is monthly, however billing
inserts will be quarterly}
June 9, 2020 Item #10 Page 218 of 286
Description Purpose Distribution/Frequency
Program Announcements On each bill, Contractor shall include a brief statement to Commercial Customers
providing service-related announcements such as messages about new services,
the on-call clean-up and Bulky Item pick-up services, proper handling of
Household Hazardous Waste, etc.
Included in Customer bill.
Corrective Action Notices Produce a Commercial and Multi-Family Customer oriented corrective action
notice for use in instances where the Customer includes prohibited materials in
a Container or fails to properly prepare or set-out Containers.
As needed.
Mandatory Recycling and
Organics Outreach Activities
Contractor shall disseminate outreach materials related to the mandatory
nature of Recyclable Materials and Organic Materials Collection services, upon
request from City Contract Manager. Such outreach shall be designed to assist
the City in complying with the outreach requirements of various Applicable Laws
related to the mandatory provision of Recyclable Materials and Organic
Materials Collection and Diversion services.
One (1) time annually
Educational Materials for
Employees/Tenants
Contractor shall provide Commercial and Multi-Family property
managers/owners with City-produced public education materials, required by SB
1383, for their distribution to all employees, contractors, tenants, and
Customers of the property or business. The public education materials shall
include, at a minimum, information about Organic Waste recovery requirements
and proper sorting of Discarded Materials. Commercial Customers may request
these materials more frequently if needed to comply with the SB 1383
requirement to provide information to new tenants before or within 14 days of
occupancy.
One (1) time annually; or more
frequently upon Customer
request.
June 9, 2020 Item #10 Page 219 of 286
Description Purpose Distribution/Frequency
Commercial Edible Food
Generator Education
Contractor shall provide Customers that are Commercial Edible Food Generators
with the following:
1. Information about the City’s Edible Food Recovery program;
2. Information about the Commercial Edible Food Generator requirements
under 14 CCR, Division 7, Chapter 12, Article 10;
3. Information about Food Recovery Organizations and Food Recovery Services
operating within the City, and where a list of those Food Recovery
Organizations and Food Recovery Services can be found; and,
4. Information about actions that Commercial Edible Food Generators can take
to prevent the creation of Food Waste
One (1) time annually
June 9, 2020 Item #10 Page 220 of 286
Public Education and Outreach | Schools - EXAMPLE
All printed materials also to be posted to the Company’s website as well as links to teacher resources.
Description Purpose Distribution/Frequency
Educational Materials Contractor shall produce and distribute educational materials designed by the
City that are geared towards younger audiences, such as educational videos,
activity books, and recycling posters. Contractor shall provide schools with
copies of the video upon request for classroom use. The video shall be made
accessible through City portions of the Contractor website.
Upon request.
Technical Assistance: Diversion
Opportunity Assessment
Offer on-going technical assistance to schools subscribing to Contractor’s
services, including performing annual waste assessments, calculating Diversion
rates, and communicating the results to the City to improve existing school
Recycling and Organics programs. The annual waste assessments shall include
a specific assessment of Food Waste generated on the school premises;
potential for source reduction and diversion of Food Waste; and identification
of Food Recovery education and programs that may be established, both
internally (e.g., lunch share tables) and externally (e.g., partnerships with local
Food Recovery Organizations and Services).
Offered to schools Upon Request.
Presentation Present curriculum to teach children how to Recycle, Compost, and reduce
waste at school and at home.
At City Request.
Facility Tours Promote, coordinate, and conduct educational field trips to the Approved
Facilities.
At City Request.
Note: Contractor shall perform these education and outreach services to all schools, public and private, within the City without respect to the Contractor’s
status as the service provider for a given school or school district.
June 9, 2020 Item #10 Page 221 of 286
Public Education and Outreach | Special Events
All printed materials also to be posted to the Company’s website as well as links to teacher resources.
Description Purpose Distribution/Frequency
Event Exhibit Contractor shall staff an exhibit booth and distribute promotional and
educational materials at special events. Contractor shall provide visual displays,
copies of educational materials (including all guides, flyers, and brochures
produced for this Agreement), and Recycling education activities appropriate to
a variety of age groups. Display components will be professionally designed and
created and shall be scalable to be appropriate for a variety of booth or display
configurations. Materials will include those pertaining to the programs
provided under this Agreement as well as general information on “green”
and/or sustainable behaviors.
All special events listed in Exhibit
B7 of this Agreement.
Other events at Customer
request.
June 9, 2020 Item #10 Page 222 of 286
EXHIBIT D:
REPORTING REQUIREMENTS
June 9, 2020 Item #10 Page 223 of 286
Records shall be maintained in forms and by methods that facilitate flexible use of data contained in them
to structure reports, as needed. Reports are intended to compile recorded data into useful forms of
information that can be used to, among other things:
1. Determine and set Rates and evaluate the financial efficacy of operations.
2. Evaluate past and expected progress towards achieving the Contractor’s Diversion goals and
objectives.
3. Provide concise and comprehensive program information and metrics for use in fulfilling reporting
requirements under Applicable Law.
4. Determine needs for adjustment to programs.
5. Evaluate Customer service and Complaints.
6. Determine Customer compliance with AB 341, AB 1826, SB 1383, and any subsequent State-
mandated Recycling requirements.
1. Monthly Report Content
Monthly reports shall be submitted by Contractor to the City and shall include the following information
pertaining to the most recently-completed calendar month. In addition, each monthly report shall include
a year-to-date summary page that includes the data submitted from the monthly report(s) submitted in
the calendar year prior to the submittal of the current monthly report. Contractor shall report the
information included in the following subsections.
A. Tonnage Report
1. Tonnage delivered to each Approved Facility by Customer Type, subtotaling and clearly identifying
those Tons that are Diverted and those that are Disposed.
2. Units of Used Oil, Used Oil Filters, E-Waste, U-Waste, and Bulky Items Collected by Customer Type.
3. Solid Waste Tonnage Disposed.
4. Recyclable Materials Tonnage Marketed (by commodity and including average commodity value
for each) and Processing Residue Tonnage Disposed.
5. Bulky Items and Reusable Materials Tonnage Marketed and Tonnage Disposed from non-
Divertible materials and Processing Residue.
6. Monthly Diversion rate by Customer Type and in aggregate for all Customer Types under this
Agreement.
B. Diversion Report
Contractor shall report the Diversion level for each month and the cumulative year-to-date Diversion
Level, where Diversion level shall be calculated as: (Discarded Materials Collected – Solid Waste
Collected – Processing Residue Disposed) / Discarded Materials Collected.
June 9, 2020 Item #10 Page 224 of 286
C. Revenue Report
Provide a statement detailing Gross Receipts from all operations conducted or permitted pursuant to this
Agreement as required by Section 7.8.
Provide a list of Customers that are forty five (45) or more calendar days past due and include the following
information for each delinquent account: name; service address; contact information; number of days the
account is delinquent; and method(s) the Contractor has used to attempt collection of the bad debt
including date of such attempt(s).
C. Customer Subscription and Collection Report
1. A summary of Customer subscription data, including the number of accounts; the number of
Customers subscribing to each Service Level listed separately by Customer Type and Discarded
Material type.
2. Number of Containers at each Service Level by Customer Type and program. Summarizing the
total gallons of Cart service, cubic yards of Bin service, and pulls and cubic yards or Tons of Drop
Box and Compactor service by Customer Type. Report should calculate the average volume of
service received per: Single-Family Dwelling Unit (separately identifying Dwelling Units in a
duplex, triplex, or fourplex); Multi-Family Dwelling Unit; and, Commercial Customer.
3. List of all Commercial and Multi-Family Customers with Solid Waste Service. Such list shall include
each such Customer’s service address and subscribed Solid Waste, Recyclable Materials, and
Organic Materials Service Levels, and other information as required by Section 5.12 of the
Agreement. The list should include all information in one line for each Customer illustrating the
Service Level for each Material Type and the total Service Level for all Material Types the
Customer has subscribed to.
4. Number of Bulky Item/Reusable Materials Collection events by Customer Type.
5. Number of Customers subscribing to each City approved service exemption by Customer Type;
including the total number of de minimis waivers, physical space constraint waivers, and
Collection frequency waivers granted in the month in accordance with Section 4.11, including the
Customer name and address for each waiver
6. The number of waivers reviewed and number of reverification inspections performed by the
Contractor pursuant to Section 4.11.2 of this Agreement in the month, if any, including a copy of
documentation for each waiver review and reverification inspection.
7. List of commercial generators with decreased service levels, cancellation of service, and new
service.
D. City Services Report
1. City facility Diversion rate report (i.e. volume of service by Service Type received by each City
Facility and the percentage of the total Service Levels that are for Diversion services relative to
the total).
June 9, 2020 Item #10 Page 225 of 286
2. Summary report on the programs offered to City as described in Exhibit B6 focused on when each
service was provided and any issues/concerns identified.
E. Customer Service Report
1. Number of Customer calls listed separately by Complaints and inquiries (where inquiries include
requests for Recycling information, Rate information, etc.). For Complaints, list the number of
calls separately by category (e.g., missed pickups, scheduled cleanups, billing concerns, damage
claims, etc.). These complaints and inquiries shall be documented and reported separately from
SB 1383 noncompliance complaints or other regulatory noncompliance complaints.
2. Number of missed or incomplete Collections reported in total, and per one thousand (1,000)
Service Opportunities in the City, presented in a graph format, which compares total missed
Collections in the City to total missed Collections in the other agencies served by Contractor’s
{General Manager/Regional Manager}.
3. Number of missed or incomplete Collections reported in total, and per one thousand (1,000)
Service Opportunities in the City, presented in a graph format, which compares total missed
Collections in the City during the current report period to total missed Collections in the City in
past reporting periods.
4. Number of new service requests for each Customer Type and program.
5. Number of events of Discarded Materials being tagged for non-Collection summarized by the
reason for tagging (e.g., inclusion of non-Recyclable or non-Compostable materials, improper set-
out, Hazardous Waste, etc.). {Note to Proposers: This definition may be revised as needed to reflect
Contractor’s proposed approach to non-Collection noticing.}
6. Number of Courtesy Collections summarized by the reason for leaving a Courtesy Notice (e.g.,
inclusion of non-Recyclable or non-Compostable materials, improper set-out, Hazardous Waste,
etc.).
7. List of Customers for which Contractor has performed a Courtesy Collection, including the
Customer address, and material type for which the Courtesy Collection was performed.
8. Number of hits and unique visitors to the Contractor’s website.
9. Instances and amounts of Missed Collection Rebates, and Late Container Delivery Rebates paid in
accordance with Section 5.13 of the Agreement.
10. Record of SB 1383 non-compliance complaints received, including the following information:
a. Total number of complaints received and total number of complaints investigated.
b. Copies of documentation recorded for each complaint received, which shall at a minimum
include the following information: (i) The complaint as received; (ii) The name and contact
information of the complainant, if the complaint is not submitted anonymously; (iii) The
identity of the alleged violator, if known; (iv) A description of the alleged violation;
including location(s) and all other relevant facts known to the complainant; (v) Any
June 9, 2020 Item #10 Page 226 of 286
relevant photographic or documentary evidence submitted to support the allegations in
the complaint; and, (vi)The identity of any witnesses, if known.
c. Copies of all complaint reports submitted to the City, pursuant to Section 6.10.A of
this Agreement.
d. Documentation of any follow-up inspections and/or outreach, if any, conducted upon
City request pursuant to Section 4.9.4 of this Agreement, which shall include at a
minimum: (i) The date the Contractor investigated the complaint; (ii) documentation
of the findings of the investigation; and (iii) Any photographic or other evidence
collected during the investigation.
F. Education and Outreach
1. Status report of Contractor’s actual activities completed and budget expended compared to the
annual public education plan and budget. For each completed item, document the results
including what date the activity was performed, how many Customers were targeted or
participated, and what methods were used to accomplish the task, if different from the plan.
2. A copy of all education and outreach materials provided to Generators, or otherwise used for
education and outreach efforts in accordance with Section 6.3 of the Agreement, including, but
not limited to: flyers, brochures, newsletters, invoice messaging/billing inserts, and website and
social media postings.
3. A record of the date and to whom the information was disseminated, or direct contact made, in
the form of a list that includes: the Generator’s name or account name, the type of education or
outreach received; the distribution date, and the method of distribution.
4. For any mass distribution through mailings or bill inserts, provide a record of the date, a copy of
the information distributed, and the type and number of accounts that received the information.
5. A copy of all electronic media, including the dates posted or sent of: social media posts, e-mail
communications, or other electronic messages. A summary report shall be provided for electronic
marketing that itemizes each communication and reports performance metrics for each that are
relevant to that type of communication (e.g. open and click-through rates for email marketing,
engagement numbers for social media, etc.).
6. Summary of the results of the Diversion opportunity assessments provided to Customers
(reporting Multi-Family separate from Commercial) by identifying the number of Diversion
opportunity assessments conducted each month in the most-recently completed quarter, and
contact information including address, contact names, telephone number of Persons contacted,
number of Dwelling Units (for Multi-Family), and the Recyclable Materials, Organic Materials, and
Solid Waste Service Level for each complex. Include any Service Level changes resulting from such
visits.
7. Summary of the public education materials and activities provided to schools in the month, if any;
including results from Diversion opportunity assessments as described in Exhibit C.
June 9, 2020 Item #10 Page 227 of 286
8. Dates, times, and group or event names of any site visits, meetings, and events attended in the
month.
G. Contamination Monitoring Report
1. The number of Route reviews conducted pursuant to Section 4.12 of this Agreement.
2. Description of the Contractor’s process for determining the level of contamination or bin
overfilling during Route reviews. Contractor shall document the contamination and/or overfilling
through use of film or digital photography
3. A record of each inspection and contamination fee assessed, which shall include, at a minimum:
a. Name and address of the Customer;
c. The date the contaminated Container was observed;
d. The staff who conducted the inspection;
e. The total number of violations found and a description of what action was taken for
each;
f. Copies of all notices to Customers with Prohibited Container Contaminants; and,
g. Photographic documentation.
4. Documentation of the total number of Containers Disposed of due to observation of Prohibited
Container Contaminants;
5. Summary report of courtesy pick-up notices, non-Collection notices, and/or contamination
Processing fee assessment notices issued, which for each notice shall include the date of issuance,
Customer name, and service address.
6. A list of all Customers assessed contamination processing fees, pursuant to Section 4.12 of this
Agreement, reported separately by Customer Type, and including the Customer name, Customer
address, and reason for the assessment of the contamination processing fee; the total number of
instances contamination processing fees were assessed in the month; and, the total amount of
fees collected in the month.
7. Results of the waste characterization studies conducted pursuant to Section 4.12.2 of this
Agreement.
8. Any other information reasonably requested by the City or specified in contamination monitoring
provisions of this Agreement.
H. Pilot and New Programs Report
For each pilot and/or new program, provide activity related and narrative reports on goals, milestones,
and accomplishments. Describe problems encountered, actions taken and any recommendations to
facilitate progress. Describe vehicles, personnel, and equipment utilized for each program.
June 9, 2020 Item #10 Page 228 of 286
2. Annual Report Content
The annual report shall be the final monthly report, including annual totals, summary pages, and a
compilation of any materials required by the monthly reports, plus the following additional information.
A. Summary Assessment
Provide a summary assessment of the programs performed under this Agreement from Contractor's
perspective relative to the financial and physical status of the program. The physical status assessment
shall reflect how well the program is operating in terms of efficiency, economy, and effectiveness in
meeting all the goals and objectives of this Agreement, particularly the Contractor’s Diversion goals.
Provide recommendations and plans to improve, and highlight significant accomplishments and problems.
Results shall be compared to other similar size communities served by the Contactor in the State.
B. Collection and Processing Report
1. The total Tonnage amount of Discarded Materials, listed separately by Discarded Material type,
removed from homeless encampments and illegal disposal sites as part of an abatement activity,
listing each Collection event separately by date, location, and Tonnage Collected, pursuant to
Section 6.8.E of the Agreement.
2. A record of all compliance agreements for quarantined Organic Waste that are Disposed of,
including the name of Generator, date issued, location of final disposition, and the amount of
quarantined Organic Waste that was required to be Disposed at a Landfill, pursuant to Section
6.8.F of the Agreement.
3. Written notification that the Approved Organic Waste Processing Facility(ies) has and will
continue to have the capabilities to Process and recover the Compostable Plastics, in accordance
with Section 4.2.C.2 of the Agreement.
C. Education and Outreach Report
1. A summary of the status of the annual education plan of the reporting year, including activities
conducted and the quantitative and/or qualitative results of those activities.
2. The annual public education plan required by Section 6.3 of the Agreement for the upcoming
then-current calendar year. For example, Contractor submittal of a 2021 annual report in
February 2022 shall include Contractor submittal of the annual public education plan for calendar
year 2022
D. Commercial Edible Food Generator Report
1. Commercial Customer list including contact information requested by the City Contract Manager
and designation of each Commercial Customer as either “Tier 1”, “Tier 2”, or “Non-Covered”
Edible Food Generator.
B. Vehicle Inventory
June 9, 2020 Item #10 Page 229 of 286
1. A list of all vehicles used in performing services under this Agreement including the license plate
number, VIN, make, model, model year, purchase date, engine overhaul/rebuild date (if
applicable), and mileage at December 31.
2. The total amount of RNG procured by the Contractor for use in Contractor vehicles, in diesel gallon
equivalents (DGE), including copies of any receipts, invoices, or other similar documentation
evidencing procurement. In addition to the amount procured, Contractor shall include the total
amount actually used in Contractor vehicles in the calendar year, if these values are different.
3. The name, physical location, and contact information of each entity, operation, or facility from
whom the Contractor procured RNG for Collection Vehicles.
C. Recyclables and Organics Markets
Contractor shall provide a report describing its marketing of Recyclable Materials. The marketing report
shall include: 1) quantities of each Accepted Recyclable Material marketed during the prior year; 2) actual
prior year and estimated coming year per unit or per ton market values for each; and, 3) brokers, markets,
and end uses for each.
D. AB 341 and AB 1826 Compliance
Provide a listing of Commercial Customers subscribing to four (4) or more cubic yards of Solid Waste
service per week who do not currently subscribe to Recyclable Materials Collection service from
Contractor, and a listing of Commercial Customers subscribing to four (4) or more cubic yards of Solid
Waste service per week who do not currently subscribe to Organic Materials Collection service from
Contractor.
3. Additional Reports
A. Upon Incident Reporting. City reserves the right to request additional reports or documents in
the case of unforeseen events or additional requirements imposed upon the City. The Contractor shall
provide the requested reports, documents, or information within ten (10) Business Days upon receipt of
the request or within a timeframe determined by the City Contract Manager, which shall not to exceed
ten (10) days.
B. AB 901 Reporting. At the City’s option, City may require that Contractor provide the City copies
of Contractor’s AB 901 reports on a regular basis (such as monthly, quarterly, or annually) or within ten
(10) business days of the request.
C. Customized Reports. The City reserves the right to request Contractor to prepare and provide
customized reports from records Contractor is required to maintain; or require a specified format or
submission system, such as the use of a web-based software platform.
June 9, 2020 Item #10 Page 230 of 286
This page intentionally left blank
June 9, 2020 Item #10 Page 231 of 286
EXHIBIT E:
RATE ADJUSTMENT METHODOLOGY
June 9, 2020 Item #10 Page 232 of 286
1. GENERAL
Subject to the terms herein, the City shall adjust all Rates on an annual basis. Contractor shall submit its
application for a Rate adjustment to the City Contract Manager on or before October 1 of each Rate Period
where Rates shall be adjusted using the index-based methodology described in Exhibit E1. Contractor
shall submit its application on or before August 1 for any Rate Period where Rates shall be adjusted using
the cost-based methodology described in Exhibit E2. Contractor’s Rate application shall document all
calculations and include all supporting schedules, documentation of per-Ton charges for Approved
Facilities, documentation of changes in governmental fees at Approved Facilities (if applicable), and any
other documentation or evidence determined by the City Contract Manager to be reasonably necessary
to ensure that the calculation of Rate adjustments has been performed in strict conformance to the
requirements of this Exhibit E.
The City Council shall make a good faith effort to approve Rates by December 1 of each year, and such
Rates shall be effective on each subsequent January 1. If Rates are not effective by January 1 due to a
delay caused solely by City, City shall allow Contractor to retroactively bill Customers for the amount of
the Rate increase for any period of said delay that is solely caused by City (subject to the City’s approval
of how the retroactive adjustment is billed) or the City may compensate the Contractor for lost Gross Rate
Revenues. In the case of a delayed Rate adjustment, the Contractor may bill the Customer during the next
billing cycle to recoup the deferred Rate increase. If Rates are not effective by July 1 as a result of
Contractor’s delay in submitting the Rate application in a complete and accurate form, then prior Rates
remain in effect until such adjustment is made and Contractor shall not be entitled to a retroactive
adjustment for lost Gross Rate Revenues.
2. DEFINITIONS
Certain terms which are specific to this Exhibit (including Exhibits E1 and E2) are defined below:
A. “Annual Percentage Change” means the annual percentage change in any of the indices defined
above calculated as described in the following paragraph.
The Annual Percentage Change for a cost index shall be calculated as the Average Index Value for
the most recently available 12-month period of the then-current Rate Period minus the Average
Index Value for the corresponding 12-month period of the most-recently completed Rate Period
and the result of which shall be divided by the Average Index Value for the same 12-month period
of the most recently completed Rate Period.
For example, if the Contractor is calculating the Total Calculated Costs in July 2021 to be effective
for Rate Period Three (January 2022 through December 2022), the Annual Percentage Change for
the CPI-U would be calculated as follows:
June 9, 2020 Item #10 Page 233 of 286
[ (Average CPI-U for March 2020 through February 2021) minus (Average
CPI-U for March 2019 through February 2020) ] divided by (Average CPI-
U for March 2019 through February 2020)
The calculated Annual Percentage Change shall be carried to three places to the right of the
decimal and rounded to the nearest thousandths.
B. “Average Index Value” means the sum of the monthly index values during the most recently
available 12-month period divided by 12 (in the case of indices published monthly) or the sum of
the bi-monthly index values divided by 6 (in the case of indices published bi-monthly).
C. “CPI-U” means the Consumer Price Index, All Urban Consumers, all items, not seasonally adjusted
San Diego Metropolitan Area compiled and published by the U.S. Department of Labor, Bureau of
Labor Statistics.
D. “Disposal Cost” means the cost of Disposing of Solid Waste at the Designated Disposal Facility
where the per-ton tipping fee (cost) is specified by the City.
E. “ECI” means the Employment Cost Index, Total Compensation, Private Industry, Service-Providing
Industries, seasonally adjusted, compiled and published by the U.S. Department of Labor, Bureau
of Labor Statistics.
F. “Fuel Index” means the per-term price for Core Natural Gas Service for Compression on
Customer’s Premises, Schedule G-NGV1, compiled and published by the Pacific Gas and Electric
Company Analysis and Rate Department and reported monthly in its “Gas RateFinder” publication
(http://www.pge.com/tariffs/GRF.SHTML). The January 2018 Fuel Index is $0.70874 per therm,
which reflects the sum of the customer charge, procurement charge, transportation charge, and
public purpose program (PPP) charge for natural gas service for compression on customer’s
premises as reported by Pacific Gas and Electric Company. {Note to proposer: we recognize that
this is a Northern California index and welcome recommendation for a replacement index.}
G. “Motor Vehicle Maintenance and Repair Index” or “MVI” means the Consumer Price Index, All
Urban Consumers, Motor Vehicle Maintenance and Repair, not seasonally adjusted U.S. city
average, compiled and published by the U.S. Department of Labor, Bureau of Labor Statistics.
H. “Recyclables Rebate Index” means {Note to proposer: The City requests your proposal for a
calculation methodology that uses publicly-available or third-party indices (OBM,
RecyclingMarkets.net, etc) and recycling characterization data, specific to the City, to develop an
index to track the value of recyclable materials during the term of the Agreement}.
I. “Total Calculated Costs” means the total amount to be used as a basis for determining the Rate
Adjustment Factor. The Total Calculated Costs do not reflect or in any way guarantee the Gross
Rate Revenues that are to be generated by Rates or retained by the Contractor. Note that for
determining Rates for Rate Period Two, the total Proposed costs for Rate Period One (January 1,
2020 to December 31, 2020) shall be used for the calculations.
June 9, 2020 Item #10 Page 234 of 286
Table 1 provides additional information about the four indices defined above.
TABLE 1*
CPI-U Fuel Index Motor Vehicle
Maintenance and
Repair
Description Consumer Price
Index - All Urban
Consumers
Core Natural Gas for
Compression at
Customer’s Premises
for Motor Vehicles
Consumer Price
Index – All Urban
Consumers, Motor
Vehicle
Maintenance and
Repair
Series ID G-NGV1 CUUR0000SETD
Adjusted Not seasonally
adjusted
N/A Not seasonally
adjusted
Area San Diego N/A U.S. City average
Item All items N/A Motor vehicle
maintenance and repair
Base
Period
1967=100 N/A 1982-84=100
Periodicity Bi-monthly Monthly Monthly
* All indices published by the U.S. Bureau of Labor Statistics with the exception of the Fuel Index, which is
published by Pacific Gas and Electric Company Analysis and Rate Department.
3. COST OF RATE ADJUSTMENT PROCESS
The City may incur costs, including consulting and legal fees, when determining adjustments to the Rates
in accordance with this Exhibit and may require the Contractor to pay for such costs within sixty (60)
calendar days of receipt of the City’s invoice for such costs. The Contractor may recover such costs
through the Rates by treating the costs as an allowable Pass-Through Cost. Regardless of Contractor’s
payment of costs associated with said review, the City shall retain full and unimpeded discretion in
selection of its agents to ensure, at a minimum, that no conflict of interest arises in the review of
Contractor’s request. The City retains the right to select its agents on the basis of their qualifications and
experience and without regard to cost.
June 9, 2020 Item #10 Page 235 of 286
This page intentionally left blank
June 9, 2020 Item #10 Page 236 of 286
EXHIBIT E1:
MULTI-INDEX RATE ADJUSTMENT METHODOLOGY
June 9, 2020 Item #10 Page 237 of 286
1. GENERAL
The purpose of this attachment is to describe and illustrate the method by which the City will calculate the
annual adjustment to Rates to reflect changes in various cost indices and changes to Processing and Disposal
Costs based on Tonnages of materials Collected and changes in tipping fees. This index-based adjustment
process shall be used to determine Rates for all Rate Periods beginning with Rate Period Two (July 1, 2023
through June 30, 2024) with the exception that in place of the index adjustment to set Rates, the
methodology described in Exhibit E2 shall be used in Rate Periods Four and Eight, subject to the provisions
of Section 8.2 of the Agreement.
The index-based adjustment involves application of indices to various costs that comprise the Total
Proposed Annual Costs for Rate Period One (and to Total Calculated Costs for future Rate Periods) to
determine the Total Calculated Costs for the coming Rate Period. In addition, Processing and Disposal costs
shall be adjusted to reflect actual Tonnage Collected during the most-recently completed Rate Period.
The difference (measured as a percentage) between the Total Calculated Costs for the coming Rate Period
and the Total Calculated Costs for the then-current Rate Period is the Rate Adjustment Factor. The Rate
Adjustment Factor is applied to the current Rates to determine the Rates for the coming Rate Period.
The Rate Adjustment Factor calculated pursuant to this Exhibit E1 may not exceed five percent (5%). In the
event that the calculation results in a calculated increase exceeding five percent (5%), Contractor may elect
to either: i) accept a Customer Rate increase of no more than five percent (5%); or, ii) require that a cost-
based Rate adjustment be performed under the procedures described in Exhibit E2. In the event that
Contractor requires a cost-based rate adjustment, Contractor shall pay City’s costs of the cost-based rate
adjustment review.
In the event that the index-based adjustment as calculated by this Exhibit E1 results in a negative Rate
Adjustment Factor, the City reserves the right to “roll-under” the Rate reduction, such that there is no Rate
adjustment in the Rate Period for which the negative Rate Adjustment Factor was calculated, but the
calculated Rate reduction may be deferred to the following Rate Period, as a credit against future Rate
increases.
2. ADJUSTMENT OF TOTAL CALCULATED COSTS
The cost categories of the main components of Total Calculated Costs are presented in detail in Exhibit G2.
Adjustments to these components to calculate costs for the coming Rate Period shall be calculated as
follows:
June 9, 2020 Item #10 Page 238 of 286
A. Total Annual Cost of Operations
1. Labor-Related Costs. The Labor-Related Costs component of Total Calculated Costs for the then-
current Rate Period is multiplied by one plus the Annual Percentage Change in the ECI.
For example, in Rate Period Two when calculating the Labor-Related Costs for Rate Period Three,
the Labor-Related Costs of Rate Period Two shall be multiplied by one plus the Annual Percentage
change in the ECI.
2. Vehicle-Related Costs (excluding Fuel). The Vehicle-Related Costs component of Total Calculated
Costs for the then-current Rate Period is multiplied by one plus the Annual Percentage Change in
the Motor Vehicle Maintenance and Repair Index.
3. Fuel Costs. The Fuel Cost component of Total Calculated Costs for the then-current Rate Period is
multiplied by one plus the Annual Percentage Change in the Fuel Index.
4. Other Costs. The Other Costs component of the Total Calculated Costs for the then-current Rate
Period is multiplied by one plus the Annual Percentage Change in the CPI-U.
5. Direct Depreciation. Direct Depreciation is $___________ per year for Rate Periods Two through
Ten, and is not annually adjusted. This adjusted depreciation amount shall remain fixed for Rate
Periods Two through Ten. If the Agreement is extended beyond Rate Period Ten, direct
depreciation shall be zero in any subsequent Rate Periods unless Parties mutually agree to a
different amount. {Note to Proposer: Amount of direct depreciation shall be entered during contract
negotiations to reflect the final scope of services, which may include some or all of the alternative
services.}
6. Allocated Costs (Labor, Vehicle, Fuel, and Other Costs). The Allocated Costs (Labor, Vehicle, Fuel,
and Other Costs) component for the then-current Rate Period is multiplied by one plus the Annual
Percentage Change in the CPI-U.
7. Allocated Depreciation and Start-Up Costs. The Allocated Depreciation and Start-Up Costs shall be
$___________ per year for Rate Period Two through Ten, and are not annually adjusted. These
costs shall be zero for all subsequent Rate Periods unless Parties mutually agree to a different
amount. {Note to Proposer: Amount of allocated direct depreciation and start-up costs shall be
entered during contract negotiations to reflect the final scope of services, which may include some
or all of the alternative services.}
8. Total Annual Cost of Operations. The Total Annual Cost of Operations for the coming Rate Period
equals the sum of the costs calculated in subsections (1) through (7) above.
B. Profit
Profit for the coming Rate Period shall be calculated by dividing the Total Annual Cost of Operations for the
coming Rate Period (the value calculated in Section 2.A.8 above) by an operating ratio (___) and subtracting
June 9, 2020 Item #10 Page 239 of 286
from the result the Total Annual Cost of Operations for the coming year. {Note to Proposer: Insert the
operating ratio.}
Profit =
Total Annual Cost of Operations
___for Coming Rate Period___
Operating Ratio
− Total Annual Cost of Operations
for Coming Rate Period
C. Pass-Through Costs (Excluded from the Calculation of Profit)
1. Recyclable Materials Processing Costs. The Recyclable Materials Processing Costs shall be
calculated as follows:
Recyclable Materials Processing Cost = [(Per-Ton Recyclable Materials Processing Cost for the then-
current Rate Period - All regulatory fees identified on Form 7 of Exhibit G2, (Contractor’s Proposal)
and included in the then-current per-Ton cost) x (1 + Annual Percentage Change in the CPI-U) +
(Then-current per-Ton regulatory fees)] x (Total Tons of Recyclable Materials Collected for the
most-recently completed 12-month period).
In the establishment of Rates for Rate Period 2, due to the lack of tonnage data for a 12-month
period, the tonnage of Recyclable Materials included in Contractor’s Proposal shall be used in place
of the Total Tons of Recyclable Materials Collected for the most-recently completed 12-month
period.
2. Recyclable Materials Processing Rebate. The Recyclable Materials Processing Rebate shall be
calculated as follows:
Recyclable Materials Processing Rebate = [(Per-Ton Recyclable Materials Processing Rebate for the
then-current Rate Period) x (1 + Annual Percentage Change in the Recyclables Rebate Index)] x
(Total Tons of Recyclable Materials Collected for the most-recently completed 12-month period).
(Note: this value should be reflected as a negative number)
In the establishment of Rates for Rate Period 2, due to the lack of tonnage data for a 12-month
period, the tonnage of Recyclable Materials included in Contractor’s Proposal shall be used in place
of the Total Tons of Recyclable Materials Collected for the most-recently completed 12-month
period.
3. Organic Materials Processing Costs. The Organic Materials Processing Costs shall be calculated as
follows:
Organic Materials Processing Costs = Per-Ton Residential Organic Materials Processing fee at the
Designated Residential Organic Materials Processing Facility for the coming Rate Period x Total Tons
of Residential Organic Materials Collected for the most-recently completed 12-month period.
June 9, 2020 Item #10 Page 240 of 286
In the establishment of Rates for Rate Period 2, due to the lack of tonnage data for a 12-month
period, the tonnage of Organic Materials included in Contractor’s Proposal shall be used in place of
the Total Tons of Organic Materials Collected for the most-recently completed 12-month period.
4. Reusable Materials Processing Costs. The Reusable Materials Processing Cost shall be calculated
as follows:
Reusable Materials Processing Cost = [(Per-Ton Reusable Materials Processing Cost for the then-
current Rate Period - All regulatory fees identified on Form 7 of Exhibit G2, (Contractor’s Proposal)
and included in the then-current per-Ton cost) x (1 + Annual Percentage Change in the CPI-U) +
(Then-current per-Ton regulatory fees)] x (Total Tons of Reusable Materials Collected for the most-
recently completed 12-month period)
In the establishment of Rates for Rate Period 2, due to the lack of tonnage data for a 12-month
period, the tonnage of Reusable Materials included in Contractor’s Proposal shall be used in place
of the Total Tons of Reusable Materials Collected for the most-recently completed 12-month
period.
5. Disposal Costs. The Disposal Costs shall be calculated as follows:
Disposal Costs = Per-Ton Disposal fee at the Designated Disposal Facility (to be specified by the City)
for the coming Rate Period x Total Tons of Solid Waste Collected for the most-recently completed
12-month period.
In the establishment of Rates for Rate Period 2, due to the lack of tonnage data for a 12-month
period, the tonnage of Solid Waste included in Contractor’s Proposal shall be used in place of the
Total Tons of Solid Waste Collected for the most-recently completed 12-month period.
6. Interest Expense. The Interest Expense amount is $_______in Rate Period Two through Ten, is not
annually adjusted, and shall be zero in any subsequent Rate Period unless Parties mutually agree
to a different amount. {Note to Proposer: Amount of interest expense shall be entered during
contract negotiations to reflect the final scope of services, which may include some or all of the
alternative services.}
7. Direct Lease Costs. The Direct Lease Costs amount is $_______ in Rate Period Two through Ten, is
not annually adjusted, and shall be zero in any subsequent Rate Period unless Parties mutually
agree to a different amount. {Note to Proposer: Amount of direct lease cost shall be entered during
contract negotiations to reflect the final scope of services, which may include some or all of the
alternative services.}
8. Allocated Lease Costs. The Allocated Lease Costs amount is $_______ for Rate Period Two through
Ten (including interest costs for Allocated General and Administrative of $_____, Allocated Vehicle
Maintenance costs of $______, and Allocated Container Maintenance of $______) is not annually
adjusted, and shall remain unadjusted in any subsequent Rate Period unless Parties mutually agree
to a different amount. {Note to Proposer: Amount of allocated lease cost shall be entered during
June 9, 2020 Item #10 Page 241 of 286
contract negotiations to reflect the final scope of services, which may include some or all of the
alternative services.}
9. Total Pass-Through Costs. Total Pass-Through Costs for the coming Rate Period are the sum of the
amounts in subsections (1) through (8) above.
D. Total Calculated Costs before City Fees/Payments
The Total Calculated Costs before City Fees/Payments shall be the sum of the Total Annual Cost of
Operations, Profit, and Total Pass-Through Costs for the coming Rate Period.
E. City Fees/Payments (Pass-Through Fees)
1. Franchise Fee. Franchise Fees for the coming Rate Period, which shall equal X.X% of the Total
Calculated Costs, shall be calculated as follows: _______ x (Total Calculated Costs before City
Reimbursement/Payments plus the sum of other City Reimbursements/Payments specified in
Sections 2.E.2 through 2.E.6) and other adjustments, if any, pursuant to Section 2.F. While the
Franchise Fee is calculated based on Total Calculated Cost for the purposes of this formula, it shall
be paid out of Contractor’s profit.
2. AB 939/SB 1383 Reimbursement. The AB 939/SB 1383 payment for the coming Rate Period shall
equal the total AB 939/SB 1383 Reimbursement paid to the City in the most-recently completed
12-month period multiplied by 1 plus the Annual Percentage Change in the CPI-U, or as otherwise
directed by the City.
3. Total City Reimbursement /Payments. The Total City Reimbursement/Payments for the coming
Rate Period shall equal costs calculated in subsection (1) through (3) above; provided, however,
that any adjustment in any such fee, whether pursuant to the relevant index or as the result of the
decision of City, shall be pass-through fees (which are excluded from the calculation of profit) and
reflected in the Total City Fees/Payments.
F. Other Adjustments
From time to time during the Term of the Agreement, it may be necessary to make other adjustments to
the compensation calculations. For example, if the City elects to roll-under a negative Rate adjustment to
a future year, the dollar value of that negative adjustment shall be reflected as an adjustment. In such case,
the adjustment would be a reduction to the Total Calculated Costs.
June 9, 2020 Item #10 Page 242 of 286
G. Total Calculated Costs
The Total Calculated Costs for the coming Rate Period shall equal the sum of the Total Annual Cost of
Operations, Profit, Total Pass-Through Costs, Total City Reimbursements/Payments, and Other Adjustments
(if applicable), for the coming Rate Period.
3. RATE ADJUSTMENT FACTOR
The Rate Adjustment Factor shall equal the Total Calculated Costs for the coming Rate Period divided by
the Total Calculated Costs for the then-current Rate Period, which shall be rounded to the nearest
thousandth. Note that when determining the Rate Adjustment Factor for Rate Period Two, the Rate
Adjustment Factor shall equal the Total Calculated Costs for Rate Period Two divided by the Total Proposed
Costs of $_____________ for Rate Period One.
4. ADJUSTMENT OF RATES
Each then-current Rate shall be multiplied by the Rate Adjustment Factor to calculate the effective Rate for
the coming Rate Period. The adjustment to each Rate shall be rounded to the nearest cent.
5. EXAMPLES
The following examples illustrates the index-based adjustment method for determining Rates for Rate
Period Three. The dollar amounts shown are hypothetical amounts for Total Calculated Costs for Rate
Period Two (July 1, 2023 through June 30, 2024) and the adjustment factors are based on assumed changes
in the various indices between the Average Index Values for the twelve (12) months ending February 2022
and for the twelve (12) months ending February 2023 Example A depicts a standard index-based
adjustment, wherein the calculated Total Annual Cost of Operations increased greater than zero percent
(0%) and less than five percent (5%) over the prior Rate Period. Example B depicts an index-based
adjustment wherein the calculated Total Annual Cost of Operations resulted in a decrease from the prior
Rate Period.
{Note to Proposer: The following examples will be updated with the final cost proposal information provided
by the selected proposer.}
A. EXAMPLE A
1. Assumptions for Example Adjustment to Contractor’s Compensation:
Most-Recently Completed Rate Period = Rate Period One (January 1, 2020 through December 31, 2020)
June 9, 2020 Item #10 Page 243 of 286
Then-current Rate Period = Rate Period Two (January 1, 2021 through December 31, 2021)
Coming Rate Period = Rate Period Three (January 1, 2022 through December 30, 2022)
Recyclable Materials Processing Costs per Ton for the then-current Rate Period = $60.00 per ton
Recyclable Materials Processing Rebate per Ton for the then-current Rate Period = ($30.00) per ton
Commercial Organic Materials Processing Costs per Ton for the then-current Rate Period = $30.00 per ton
Residential Organic Materials Processing Costs per Ton for the coming Rate Period = $40.00 per ton
Reusable Materials Processing Costs per Ton for the then-current Rate Period = $30.00 per ton
Disposal cost for the coming Rate Period = $43.00 per Ton
Annual Percentage Change in the CPI-U = 0.040
Annual Percentage Change in the ECI = 0.018
Annual Percentage Change in the Motor Vehicle Maintenance and Repair Index = 0.031
Annual Percentage Change in the Fuel Index = 0.075
Annual Percentage Change in the Recyclables Rebate Index = 0.021
Tonnages for the most-recently completed 12-month period:
Recyclable Materials – 8,000 Tons
Commercial Organic Materials – 3,000 Tons
Residential Organic Materials – 9,000 Tons
Solid Waste – 14,000 Tons
Bulky Items and Reusable Materials – 500 Tons
Note: All values presented in this table are hypothetical and used for illustrative purposes only.
June 9, 2020 Item #10 Page 244 of 286
TABLE 2
Example A Calculation of Total Calculated Costs for Rate Period Three
Rate Period
Two
Adjustment
Index
Adjustment
Factor
Rate Period
Three
Processing Tip Fee Adjustments (per Ton)
Recyclable Materials Processing Tip Fee $60.00 CPI-U 1 + 0.040 $62.40
Recyclable Materials Processing Rebate ($30.00)RRI 1 + 0.021 ($30.63)
Commercial Organic Materials Processing Tip Fee $30.00 CPI-U 1 + 0.040 $31.20
Reusable Materials Processing Tip Fee $30.00 CPI-U 1 + 0.040 $31.20
Annual Cost of Operations
Labor-related Costs $2,000,000 ECI 1 + 0.018 $2,036,000
Vehicle-related Costs (excluding fuel)$400,000 MVI 1 + 0.031 $412,400
Fuel Costs $800,000 FUEL 1 + 0.075 $860,000
Other Costs $250,000 CPI-U 1 + 0.040 $260,000
Direct Depreciation $700,000 N.A.N.A.$700,000
Allocated Costs (Labor, Vehicle, Fuel, and Other Costs)*$1,000,000 CPI-U 1 + 0.040 $1,040,000
Allocated Costs (Depreciation and Start-Up)$100,000 N.A.N.A.$100,000
Total Annual Cost of Operations $5,250,000 N.A.$5,408,400
Profit (assuming operating ratio of 0.92)$456,522 $470,296
Pass-Through Costs
Recyclable Materials Processing Costs $480,000 Tip Fee x Tons 8,000 x $62.40 $499,200
Recyclable Materials Processing Rebate ($240,000)Tip Fee x Tons 8,000 x ($30.63)($245,040)
Residential Organic Materials Processing Costs $333,000 Tip Fee x Tons 9,000 x $40.00 $360,000
Commercial Organic Materials Processing Costs $90,000 Tip Fee x Tons 9,000 x $31.20 $93,600
Reusable Materials Processing Costs $15,000 Tip Fee x Tons 500 x $31.20 $15,600
Solid Waste Disposal Costs $560,000 Tip Fee x Tons 14,000 x $43.00 $602,000
Interest Expense $150,000 N.A.N.A.$150,000
Direct Lease Costs $200,000 N.A.N.A.$200,000
Allocated Lease Costs $25,000 N.A.N.A.$25,000
Total Pass-Through Costs $1,613,000 $1,700,360
Total Calculated Costs before City Fees $7,319,522 $7,579,056
City Fees/Payments
Franchise Fee $1,326,427.83 N.A.N.A.$1,373,387.07
AB 939 Fee $182,000 CPI-U 1 + 0.040 $189,280
Vehicle Impact Mitigation Fee $15,000 N.A.N.A.$15,000
HHW Fee $30,000 CPI-U 1 + 0.040 $31,200
Rate Application Review Fee $35,000 N.A.N.A.$35,000
Procurement Reimbursement $30,000 N.A.N.A.$30,000
Total City Fees/Payments $1,618,428 $1,673,867
Other Adjustments (as needed from time to time)N.A. N.A.N.A.N.A.
Total Calculated Costs $8,937,950 $9,252,923
* Fuel costs included in allocated costs shall be adjusted using the CPI-U not Fuel Index.
June 9, 2020 Item #10 Page 245 of 286
2. Example Calculation of the Rate Adjustment Factor and Adjusted Rate for Rate Period Three
Rate Adjustment Factor = $9,252,923/$8,937,950 = 1.035
20-gallon Single-Family Rate for Rate Period Three = $22.62 x 1.035 = $23.41, which shall be effective
January 1, 2022.
B. EXAMPLE B
1. Assumptions for Example Adjustment to Contractor’s Compensation:
Most-Recently Completed Rate Period = Rate Period One (January 1, 2020 through December 31, 2020)
Then-current Rate Period = Rate Period Two (January 1, 2021 through December 31, 2021)
Coming Rate Period = Rate Period Three (January 1, 2022 through December 30, 2022)
Recyclable Materials Processing Costs per Ton for the then-current Rate Period = $60.00 per ton
Recyclable Materials Processing Rebate per Ton for the then-current Rate Period = ($30.00) per ton
Commercial Organic Materials Processing Costs per Ton for the then-current Rate Period = $30.00 per ton
Residential Organic Materials Processing Costs per Ton for the coming Rate Period = $40.00 per ton
Reusable Materials Processing Costs per Ton for the then-current Rate Period = $30.00 per ton
Disposal cost for the coming Rate Period = $43.00 per Ton
Annual Percentage Change in the CPI-U = -0.040
Annual Percentage Change in the ECI = -0.018
Annual Percentage Change in the Motor Vehicle Maintenance and Repair Index = 0.031
Annual Percentage Change in the Fuel Index = -0.075
Annual Percentage Change in the Recyclables Rebate Index = 0.021
Tonnages for the most-recently completed 12-month period:
Recyclable Materials – 8,000 Tons
June 9, 2020 Item #10 Page 246 of 286
Commercial Organic Materials – 3,000 Tons
Residential Organic Materials – 9,000 Tons
Solid Waste – 14,000 Tons
Bulky Items and Reusable Materials – 500 Tons
Note: All values presented in this table are hypothetical and used for illustrative purposes only.
June 9, 2020 Item #10 Page 247 of 286
TABLE 2
Example B Calculation of Total Calculated Costs for Rate Period Three
Rate Period
Two
Adjustment
Index
Adjustment
Factor
Rate Period
Three
Processing Tip Fee Adjustments (per Ton)
Recyclable Materials Processing Tip Fee $60.00 CPI-U 1 + -0.040 $57.60
Recyclable Materials Processing Rebate ($30.00)RRI 1 + 0.021 ($30.63)
Commercial Organic Materials Processing Tip Fee $30.00 CPI-U 1 + -0.040 $28.80
Reusable Materials Processing Tip Fee $30.00 CPI-U 1 + -0.040 $28.80
Annual Cost of Operations
Labor-related Costs $2,000,000 ECI 1 + -0.018 $1,964,000
Vehicle-related Costs (excluding fuel)$400,000 MVI 1 + 0.031 $412,400
Fuel Costs $800,000 FUEL 1+ -0.075 $740,000
Other Costs $250,000 CPI-U 1 + -0.040 $240,000
Direct Depreciation $700,000 N.A.N.A.$700,000
Allocated Costs (Labor, Vehicle, Fuel, and Other Costs)*$1,000,000 CPI-U 1 + -0.040 $960,000
Allocated Costs (Depreciation and Start-Up)$100,000 N.A.N.A.$100,000
Total Annual Cost of Operations $5,250,000 N.A.$5,116,400
Profit (assuming operating ratio of 0.92)$456,522 $444,904
Pass-Through Costs
Recyclable Materials Processing Costs $480,000 Tip Fee x Tons 8,000 x $57.60 $460,800
Recyclable Materials Processing Rebate ($240,000)Tip Fee x Tons 8,000 x ($30.63)($245,040)
Residential Organic Materials Processing Costs $333,000 Tip Fee x Tons 9,000 x $40.00 $360,000
Commercial Organic Materials Processing Costs $90,000 Tip Fee x Tons 9,000 x $28.80 $86,400
Reusable Materials Processing Costs $15,000 Tip Fee x Tons 500 x $28.80 $14,400
Solid Waste Disposal Costs $560,000 Tip Fee x Tons 14,000 x $43.00 $602,000
Interest Expense $150,000 N.A.N.A.$150,000
Direct Lease Costs $200,000 N.A.N.A.$200,000
Allocated Lease Costs $25,000 N.A.N.A.$25,000
Total Pass-Through Costs $1,613,000 $1,653,560
Total Calculated Costs before City Fees $7,319,522 $7,214,864
City Fees/Payments
Franchise Fee $1,326,427.83 N.A.N.A.$1,306,726.85
AB 939 Fee $182,000 CPI-U 1 + -0.040 $174,720
Vehicle Impact Mitigation Fee $15,000 N.A.N.A.$15,000
HHW Fee $30,000 CPI-U 1 + -0.040 $28,800
Rate Application Review Fee $35,000 N.A.N.A.$35,000
Procurement Reimbursement $30,000 N.A.N.A.$30,000
Total City Fees/Payments $1,618,428 $1,590,247
Other Adjustments (as needed from time to time)N.A. N.A.N.A.N.A.
Total Calculated Costs $8,937,950 $8,805,111
* Fuel costs included in allocated costs shall be adjusted using the CPI-U not Fuel Index.
June 9, 2020 Item #10 Page 248 of 286
2. Example Calculation of the Rate Adjustment Factor and Adjusted Rate for Rate Period Three
Total Calculated Costs = $8,805,111 < $8,937,950; Adjusted Total Calculated Costs = $8,937,950 (Total
Calculated Costs from prior Rate Period)
Rate Adjustment Factor = $8,937,950/ $8,937,950= 1.00
20-gallon Single-Family Rate for Rate Period Three = $22.62 x 1.00= $22.62, which shall be effective January
1, 2022 (i.e. NO RATE ADJUSTMENT).
Subsequent Rate Period Adjustment. $8,937,950 - $8,805,111 = $132,838 cost savings to be applied as an
“Other Adjustment” in the subsequent Rate Period adjustment calculations as an offset to Contractor’s
Total Calculated Costs.
3. OTHER
If an index described in Exhibit E is discontinued, the successor index with which it is replaced shall be used
for subsequent calculations. If no successor index is identified by the Bureau of Labor Statistics, the index
published by the organization which is most comparable shall be used.
June 9, 2020 Item #10 Page 249 of 286
EXHIBIT E2:
COST-BASED RATE ADJUSTMENT METHODOLOGY
June 9, 2020 Item #10 Page 250 of 286
1. GENERAL
The Parties shall use the cost-based Rate adjustment method described in this Exhibit in setting the Rates
for Rate Periods Four (4) and Eight (8) and the event of a Change in Scope or Change in Law. The cost-
based adjustment involves review of the Contractor’s actual cost of operations and operational statistics
(staffing levels, routes, route hours, Customers and their service levels, etc.) to determine the Actual
Allowable Total Annual Cost of Operations for the most-recently completed Rate Period and to forecast
the Total Contractor’s Compensation for the coming Rate Period. The difference (measured as a
percentage) between the Total Contractor’s Compensation for the coming Rate Period and the Projected
Gross Rate Revenues (which is calculated based on most-recent Customer subscription levels at then-
current Rates) is the “Rate Adjustment Factor”. The Rate Adjustment Factor is applied to the then-current
Rates to determine the Rates for the coming Rate Period.
The intent of performing the cost-based adjustment is to examine the actual impact of changes in inflation
or deflation, the number of Customers, and the Service Level of Customers.
In the event that the cost-based adjustment calculated in accordance with this Exhibit E2 results in a
negative Rate Adjustment Factor, the City reserves the right to “roll-under” the Rate reduction, such that
there is no Rate adjustment in the Rate Period for which the negative Rate Adjustment Factor was
calculated, but the calculated Rate reduction may be deferred to the following Rate Period, as a credit
against future Rate increases.
A. Contractor’s Rate Application
Contractor’s Rate application for any Rate Period where Rates shall be adjusted using the cost-based
methodology described in this Exhibit E2 shall include shall include the information described in this
Section 1.A. With the exception of the information identified in Subsections 1, and 2 below, all other items
listed may be requested by the City Contract Manager at any time during the Term of the Agreement and
Contractor shall comply with that request in a timely fashion.
1. Financial Statements. Within one hundred twenty (120) calendar days after the close of
the Contractor’s fiscal year {Proposers – Enter fiscal year ending date}, Contractor shall
deliver to the City one (1) hard copy of the reviewed (or audited) consolidated financial
statements of Contractor for the preceding fiscal year. Financial statements shall include
a supplemental combining schedule showing Contractor's results of operations, including
the specific revenues and expenses in connection with the operations provided for in this
Agreement separate from others included in such financial statements. The financial
statements and footnotes shall be prepared in accordance with Generally Accepted
Accounting Principles (GAAP) consistently applied and fairly reflecting the results of
operation and Contractor’s financial condition. Annual financial statements shall be
reviewed (or audited), in accordance with Generally Accepted Auditing Standards (GAAS)
by a Certified Public Accountant (CPA) licensed (in good standing) to practice public
accounting in the State as determined by the State Department of Consumer Affairs Board
of Accountancy, and that the CPA’s opinion on Contractor's annual financial statements
June 9, 2020 Item #10 Page 251 of 286
shall be unqualified, and shall contain the CPA’s conclusions regarding the Contractor’s
accounting policies and procedures, internal controls, and operating policies. The CPA
shall perform an evaluation and, if necessary, shall cite recommendations for
improvement.
3. Financial Statement Reconciliation. Contractor shall provide a schedule which clearly and
accurately ties the amounts shown in Contractor’s Rate application to Contractor’s
financial statements. Such schedule shall include any and all allocation factors and
methodologies used to report cost and operating information for services provided to the
City under this Agreement separately from Contractor obligations related to other public
or private entities. Such statement of reconciliation shall include:
a. General explanation of the various allocation methodologies used for each Rate
application line item.
b. Specific examples of each type of allocation used showing how an entry is
reported in the general ledger and ties to the Rate application.
c. Statement indicating whether there have been any changes in allocation methods
used since the last Rate application. If any allocation methods have changed
clearly identify those changes.
4. Operational Information.
a. Routes by Line of Business:
1. Number of routes per day.
2. Types of vehicles.
3. Crew size per route.
4. Number of full time equivalent (FTE) routes.
5. Number of accounts and cubic yards scheduled per route.
6. Total route hours per Line of Business per year.
7. Average cost per route.
b. Personnel:
1. Organizational chart.
2. Job classifications and number of employees (e.g., administrative,
Customer service representatives, drivers, supervisors, educational
staff).
3. Wages by job classification.
4. Number of FTE positions for each job classification.
5. Number of hours per job classification per year.
c. Productivity Statistics:
1. Average Number of accounts per route per day by Line of Business.
2. Average number of setouts per route per day by Line of Business.
3. Average Tons per route per day by vehicle type (i.e. side-loader, front-
loader, roll-off).
4. Average cubic yards of Collection scheduled per route.
June 9, 2020 Item #10 Page 252 of 286
d. Vehicles:
1. List of Collection vehicles including year purchased and mileage.
2. Average age of mobile equipment with oldest and newest.
e. Operational Changes:
1. Number of routes.
2. Staffing.
3. Supervision.
4. Collection services.
5. Variance Analysis. Provide the following variance analysis for each Line of Business. For
any variances greater than five percent (5%) annually, Contractor shall provide sufficient
rationale to support variance:
a. Variance analysis comparing current Rate Period to each of the prior Rate Periods
of Agreement.
b. Variance analysis comparing current Rate Period to each of the future projected
Rate Periods.
6. Projections. Provide the following projection data:
a. Provide support for the basis for projected Gross Receipts and line item expenses,
clearly indicate the supporting calculations and assumptions.
b. Provide support for the most-recent twelve (12) months of Tonnage data for Rate
Period ending October. Clearly indicate the supporting calculations and
assumptions.
2. FORECASTING TOTAL CONTRACTOR’S COMPENSATION
The Total Contractor’s Compensation for the coming Rate Period shall be forecasted in the manner
described in this Section.
A. Forecasting Total Annual Cost of Operations
1. Determine Actual Allowable Total Annual Cost of Operations. Contractor's financial
statements, books, and records shall be reviewed to determine Contractor's “Actual
Allowable Total Annual Cost of Operations” for the most-recently completed Rate Period
to perform all the services in the manner required by this Agreement for each of the
following cost categories:
a. Actual labor-related costs
b. Actual vehicle-related costs (excluding fuel and depreciation)
c. Actual fuel costs
d. Actual other costs (as defined on Form 6E of Exhibit G2)
June 9, 2020 Item #10 Page 253 of 286
e. Direct depreciation costs (in the amount specified in Exhibit E1)
f. Actual allocated costs (labor, vehicle, general and administrative, and other costs)
g. Actual allocated costs (depreciation and start-up) (in the amount stated in Exhibit
E1)
h. Actual Procurement Reimbursement cost
2. Non-Allowable Costs. The following list of non-allowable costs shall be deducted from
the Contractor’s actual costs when determining the Actual Allowable Total Annual Cost of
Operations.
a. Labor, equipment, fuel, and start-up costs for personnel, vehicles, and facilities
that are not specified in the proposal forms contained in Exhibit G2 and/or which
cannot be demonstrated to have been incurred as part of the performance of
services under this Agreement.
b. Payments to directors and/or owners of Contractor unless the amount paid is
reasonable compensation for services actually rendered. Reasonableness shall be
determined based on available market pricing for similar services and shall be in
the sole discretion of the City.
c. Travel expenses and entertainment (above five thousand dollars ($5,000)
annually in total) expenses, unless authorized in advance by the City.
d. Payments to repair damage to public or private property for which Contractor is
legally liable.
e. Fines or penalties of any nature.
f. Liquidated Damages assessed under this Agreement.
g. Federal or State income taxes.
h. Cash donations or value of in-kind services provided to charitable, political, youth,
civic, or other community organizations unless such donation has been previously
approved in writing as an allowable expense by the City Contract Manager.
i. Depreciation or interest expense for Collection vehicles, Containers, other
equipment, offices and other facilities if such items are leased as specified in
Exhibit G2.
j. Attorney's fees and other expenses incurred by Contractor in any court
proceeding in which the City and Contractor are adverse Parties.
k. Attorney's fees and other expenses incurred by Contractor arising from any act
or omission in violation of this Agreement.
l. Attorneys' fees and other expenses incurred by Contractor in any court
June 9, 2020 Item #10 Page 254 of 286
proceeding in which Contractor's own negligence, violation of law or regulation,
or wrong doing are in issue and occasion, in whole or in part, the attorneys' fees
and expenses claimed; and attorneys' fees and expenses incurred by Contractor
in a court proceeding in which the legal theory or statute providing a basis of
liability against Contractor also provides for separate potential liability for the City
derived from the action of its citizens or Rate payers (such as in a CERCLA lawsuit)
unless the Contractor is found not liable in such claims and such claims arise from
acts or occurrences within the Term of the Agreement.
m. Payments to Related-Party Entities for products or services, in excess of the cost
to the Related-Party Entities for those products or services.
n. Goodwill.
o. Unreasonable profit sharing distributions.
p. Replacement costs for Containers that need to be replaced because the useful
life of such Container was less than the Term.
q. Administrative costs greater than the administrative costs presented in
Contractor’s Proposal (Exhibit G2) adjusted annually by one plus the Annual
Percentage Change in the CPI-U.
r. Bad debt write-offs in excess of two percent (2%) of annual Rate revenues.
3. Forecast Total Annual Cost of Operations. Forecasted Total Annual Cost of Operations
for the coming Rate Period shall be calculated based on Actual Allowed Total Cost of
Operations for the most-recently completed Rate Period determined in accordance with
Sections 2.A.1 and 2.A.2 above. The forecasts shall be performed in the following manner:
a. Forecasted labor-related costs shall be calculated for the coming Rate Period by
the lesser of:
(i) multiplying the allowed labor-related costs, both direct and allocated, for the
most-recently completed Rate Period by one plus the Annual Percentage Change
in the ECI, and (ii) multiplying the result of step one once more by one plus the
Annual Percentage Change in the ECI; OR,
The Labor-Related Costs component of Total Calculated Costs for the then-
current Rate Period is multiplied by one plus the Annual Percentage Change in
the ECI.
b. Forecasted vehicle-related costs (excluding fuel and depreciation costs) shall be
calculated for the coming Rate Period by (i) multiplying the allowed vehicle-
related costs, both direct and allocated, for the most-recently completed Rate
Period by one plus the Annual Percentage Change in the Motor Vehicle
Maintenance and Repair Index, and (ii) multiplying the result of step one once
more by one plus the Annual Percentage Change in the Motor Vehicle
June 9, 2020 Item #10 Page 255 of 286
Maintenance and Repair Index.
c. Forecasted fuel costs shall be calculated for the coming Rate Period by (i)
multiplying the allowed fuel costs, both direct and allocated, for the most-
recently completed Rate Period by one plus the Annual Percentage Change in the
Fuel Index, and (ii) multiplying the result of step one once more by one plus the
Annual Percentage Change in the Fuel Index.
d. Forecasted other costs shall be calculated for the coming Rate Period by (i)
multiplying the allowed other-related costs, both direct and allocated, for the
most-recently completed Rate Period by one plus the Annual Percentage Change
in CPI-U, and (ii) multiplying the result of step one once more by one plus the
Annual Percentage Change in the CPI-U.
e. Forecasted direct depreciation expense shall be the amount specified in Exhibit
G2 for vehicles, Containers, and facilities. Direct depreciation expense is a fixed
cost and is not subject to inflation.
f. Forecasted allocated labor-related, vehicle-related, general and administrative,
and other costs shall be calculated for the coming Rate Period by (i) multiplying
the allowed other-related costs for most-recently completed Rate Period by one
plus the Annual Percentage Change in CPI-U, and (ii) multiplying the result of step
one once more by one plus the Annual Percentage Change in CPI-U.
g. Forecasted allocated depreciation and start-up expense shall be the amount
specified in Section 2.A.7 of Exhibit E1 for vehicles, Containers, and facilities.
h. Forecasted Total Annual Cost of Operations for the coming Rate Period shall
equal the sum of the following costs, which shall have been calculated in
accordance with the procedures in this Exhibit E2:
(1) Forecasted labor-related costs
(2) Forecasted vehicle-related costs (excluding fuel and depreciation costs)
(3) Forecasted fuel costs
(4) Forecasted other costs
(5) Forecasted direct depreciation expense
(6) Forecasted allocated labor-related, vehicle-related, general and
administrative, and other costs
(7) Forecasted allocated costs for depreciation and start-up
B. Forecast Profit
Contractor shall be entitled to Profit on Forecasted Total Annual Cost of Operations. Profit shall be
calculated using an operating ratio of XXXXXX percent (XX.X%) as proposed by Contractor and described
in Exhibit G2. Profit shall be calculated using the following formula:
June 9, 2020 Item #10 Page 256 of 286
Profit = (Forecasted Total Annual Cost of Operations / Operating Ratio) – Forecasted Total Annual
Cost of Operations
For example:
1. Assuming an operating ratio of 92%
2. Assuming a Forecasted Total Annual Cost of Operations of $1,000,000
3. Profit = ($1,000,000 / 0.92) – $1,000,000 = $86,956.52
C. Forecast Pass-Through Costs
Pass-Through Costs for the coming Rate Period shall be forecasted in the following manner:
1. Forecasted Recyclable Materials Processing costs shall be calculated in the manner
described in Section 2.C.1 of Exhibit E1.
2. Forecasted Recyclable Materials Processing Rebate shall be calculated in the manner
described in Section 2.C.2 of Exhibit E1.
3. Forecasted Residential Organic Materials Processing costs shall be calculated in the
manner described in Section 2.C.3 of Exhibit E1.
4. Forecasted Commercial Organic Materials Processing costs shall be calculated in the
manner described in Section 2.C.4 of Exhibit E1.
5. Forecasted Reusable Materials Processing costs shall be calculated in the manner
described in Section 2.C.5 of Exhibit E1.
6. Forecasted Disposal costs shall be calculated in the manner described in Section 2.C.6 of
Exhibit E1.
7. Forecasted Interest Expense. Interest Expense is $XXX,XXX per year and shall not be
adjusted over the Term of the Agreement.
8. Forecasted Direct Lease Costs. Direct Lease Costs are $XXX,XXX per year and shall not be
adjusted over the Term of the Agreement.
9. Forecasted Allocated Lease Costs. Allocated Lease Costs are $XXX,XXX per year and shall
not be adjusted over the Term of the Agreement.
D. Forecast City Fees/Payments
City fees shall be calculated in the manner described in Section 2.E of Exhibit E1.
June 9, 2020 Item #10 Page 257 of 286
3. PROJECTED GROSS RATE REVENUE
Projected Gross Rate Revenue at then-current Rates shall reflect projected annual Gross Rate Revenues
from all Customers based on then-current Rates and then-current Customer Service Levels, inclusive of all
Rates and special charges authorized under this Agreement. For the purposes of determining Customer
Service Levels for on-call services (e.g. drop-box service provided less than weekly, bin rentals, etc.) and
special charges (e.g. push charges, lock/unlock charges, etc.), the prior 12 months of billing activity for
such services and special charges shall be used.
4. RATE ADJUSTMENT FACTOR
The Rate Adjustment Factor shall equal the Forecasted Total Calculated Costs for the coming Rate Period
divided by the Projected Gross Rate Revenues calculated in accordance with Section 2 herein. The Rate
Adjustment Factor shall be rounded to the nearest thousandth.
5. ADJUSTMENT OF RATES
Each then-current Rate shall be multiplied by the Rate Adjustment Factor to calculate the effective Rate
for the coming Rate Period.
June 9, 2020 Item #10 Page 258 of 286
EXHIBIT F:
PERFORMANCE STANDARDS AND LIQUIDATED
DAMAGES
June 9, 2020 Item #10 Page 259 of 286
City wishes to establish standards of performance under the Agreement in each of the five (5)
“Performance Areas” listed below. The City Contract Manager may monitor Contractor’s performance in
each of those areas based on the “Specific Performance Measures” within that performance area. If the
City Contract Manager determines that Contractor has failed to meet the performance standard
established for any “Specific Performance Measure”, the City may assess Liquidated Damages pursuant
to Section 10.6 of the Agreement. Liquidated Damages, if assessed, shall only be assessed for the number
of events, days, or other measure in excess of the acceptable performance level.
1. Performance Area: Provision of Universal Three-Container {or Four-Container}
Service
Item
Specific Performance
Measure Definition
Acceptable
Performance
Level
Liquidated Damage
Amount
1. Failure to Provide
Recyclable Material and
Organic Material
Collection Services to
every Customer
For each occurrence of
failing to provide
Customers with the three-
Container system,
including Recyclable
Material and Organic
Materials, required by and
compliant with Article 4
and Exhibit B.
No
acceptable
failure level
$500/Customer
The City shall not assess Liquidated Damages item 1, above, under the following circumstances:
A. City has granted the Customer a waiver pursuant to Section 4.11 of this Agreement,
B. Contractor documents that Customer is compliant with Recycling and Organic Waste Self-Hauling
requirements pursuant to Municipal Code Sections 6.08.020 and 6.08.024 and 14 CCR Division 7, Article
12, Article 7.
C. Contractor documents to the City that the Customer is being provided Recyclable Material and/or
Organic Material Collection services from a City-permitted, or non-exclusively franchised, Recycler or
Discarded Materials service provider;
D. Contractor documents that Customer is sharing Recyclable Materials and/or Organic Materials
Collection services with another Customer in a manner approved by the City; or,
E. The City has failed to adopt a mandatory Recycling ordinance.
June 9, 2020 Item #10 Page 260 of 286
2. Performance Area: Service Quality and Reliability
Item Specific Performance Measure Definition
Acceptable
Performance Level Liquidated Damage Amount
1. Missed Collections Each Service Opportunity
where Contractor fails to
Collect a Container from a
Customer who properly
placed said Container for
Collection, unless
Contractor leaves a Non-
Collection Notice
specifying the reasons for
non-Collection and
available remedies.
Less than
ten (10) per
one
thousand
(1,000)
Service
Opportuniti
es
$50/Event
2. Failure to Correct Missed
Collections
Each “Missed Collection”
as defined above which is
not Collected by the end of
the Working Day following
the receipt of the
Customer Complaint about
the Missed Collection if the
Complaint is received by
3:00 p.m. on a Working
Day and by the end of the
following Working Day for
such Complaints received
after 3:00 p.m. on a
Working Day.
Less than
one (1) per
one
hundred
(100)
Missed
Collections
$50/Event
3. Failure to Issue Customer
Rebate
Each failure to provide a
Customer the Missed
Collection Rebate or Late
Container Delivery Rebate
in accordance with Section
5.13 of the Agreement.
No
acceptable
failure level
$50/Event
4. Failure to Return Empty
Container
Failure to properly return
empty Carts or Bins to the
Collection location, or to
place Carts upright.
Less than
ten (10) per
one
thousand
(1,000)
Service
Opportuniti
es
$20/Event
June 9, 2020 Item #10 Page 261 of 286
Item
Specific Performance
Measure Definition
Acceptable
Performanc
e Level
Liquidated Damage
Amount
5. Failure to Replace Used
Oil Recovery Kit
Failure to leave a clean
Used Oil Recovery Kit
following Collection of a
full Used Oil Recovery Kit
Five (5) or
less
occurrences
per quarter
$150/Kit/Day
6. Failure to Clean-Up
Spillage
Each failure by Contractor
to clean up: (1) any items
or materials spilled during
the Collection of a
Container; or, (2) any fluids
spilled or leaked from a
Container or Collection
vehicle prior to leaving the
Collection location.
Less than
five (5) per
one
thousand
(1,000)
Service
Opportuniti
es
$100/Event
7. Damage to Property Each event of damage to
either public or private
property as a result of
Collection activity,
including without
limitation curbs,
sidewalks, landscapes,
Container enclosures and
gates, signs, light fixtures,
and overhead wires and
cables.
Less than
two (2) per
one
thousand
(1,000)
Service
Opportuniti
es
$200/Event
8. Damage to Public Streets Each event of damage to
public streets within the
City caused by Contractor.
No
acceptable
failure level
Actual cost of repair
to City’s satisfaction.
9. Failure to Maintain
Equipment
Each event of failure to
maintain equipment,
vehicles, Carts, Bins and
other containers in a clean,
safe, and sanitary manner.
No
acceptable
failure level
$100/Item/Day
10. Failure to Comply with
Container Standards
Failure to comply with
Container labeling and
colors as specified in this
Agreement.
No
acceptable
failure level
$200/Container/
Occurrence
11. Failure to Provide/ Utilize
Required
Vehicles/Equipment
Failure to provide and
utilize required vehicles,
and communications
equipment as specified in
this Agreement.
No
acceptable
failure level
$100/Item/Day
June 9, 2020 Item #10 Page 262 of 286
Item
Specific Performance
Measure Definition
Acceptable
Performanc
e Level
Liquidated Damage
Amount
12. Failure to Utilize RNG in
Collection Vehicles
Failure to use RNG in all
Collection Vehicles, and/or
failure to use RNG that
meets the standards
specified in this
Agreement.
No
acceptable
failure level
$250/Vehicle/Day
13. Unlicensed Vehicle
Operator
Failure to have a vehicle
operator properly
licensed.
No
acceptable
failure level
$500/Operator/Day
14. Failure to Display
Contractor’s Name
Failure to display and
maintain visibility of
Contractor’s name and
customer service phone
number on Collection
vehicles, Bins and other
containers.
No
acceptable
failure level
$100/Instance/Day
15. Failure to Wear Uniform Failure to have Contractor
personnel in proper
uniform.
No
acceptable
failure level
$100/Person/Day
16. Discourteous Behavior For each occurrence of
uncustomary discourteous
behavior of Contractor’s
employees to a Customer.
Less than
five (5) per
one
thousand
(1,000)
Service
Opportuniti
es
$250/Event
17. Failure to Complete
Route
Failure or neglect to
complete at least ninety
percent (90%) of each
route on the regular
scheduled Collection
service Working Day.
No
acceptable
failure level
$1,000/Route
18. Changing Routes Changing routes without
proper notification and
approval by the City
Contract Manager.
No
acceptable
failure level
$500/Route/Day
19. Overweight Vehicles Loading Collection vehicles
in excess of State or local
weight restrictions.
No
acceptable
failure level
$150/Event
June 9, 2020 Item #10 Page 263 of 286
Item
Specific Performance
Measure Definition
Acceptable
Performanc
e Level
Liquidated Damage
Amount
20. Uncovered Loads Failure to properly cover
materials in Collection
vehicles.
No
acceptable
failure level
$500/Event
21. Failure to Cure in Timely
manner
Failure to cure non-
compliance with the
provisions of this
Agreement in the manner
and time set forth in
Section 10.2.
No
acceptable
failure level
$150/Incident/Day
22. Failure to Suspend
Contamination Program
Failure to suspend the
contamination fee
program in the event it
exceeds the percent of
Gross Receipts allowed in
Section 4.12.2.E.
No
acceptable
failure level
$50/Contamination
Fee Issued After
Specified Percentage
Threshold is
Exceeded
23. Failure to Perform Other
Requirement
Each failure to perform any
obligation of the
Agreement not specifically
stated above.
No
acceptable
failure level
$100/Event
June 9, 2020 Item #10 Page 264 of 286
3. Performance Area: Customer Service
Item Specific Performance Measure Definition
Acceptable
Performance Level Liquidated Damage Amount
1. Failure to Commence
Service and/or Provide
Move-in Kits
Any failure by Contractor
to deliver a Container and
begin providing Collection
to a Customer, at the level
of service requested by
said Customer, within
three (3) calendar days of
receiving such request.
This may include a new
Customer receiving new
service or an existing
Customer requesting a
change in or addition to
existing service levels. This
may also include delivering
Used Oil Recovery Kits,
Move-in Kits, and PRTs to
Customers upon request.
Less than
one (1) per
one
hundred
(100)
Service
Requests
$50/Event
2. Failure to Exchange
Container
Any failure by Contractor
to exchange Container
within ten (10) Working
Days of notification that a
change in the size or
number of Carts or Bins is
required.
No
acceptable
failure level
$100/Container/Day
3. Failure to Replace
Container
Any failure by Contractor
to replace a damaged or
defaced Container within
the timeline required in
Section 5.6.
No
acceptable
failure level
$100/Container/Day
4.
Failure to Resolve
Complaint
Any failure or neglect by
Contractor to resolve each
Complaint within the time
set forth in this
Agreement.
Less than
one (1) per
one
hundred
(100)
Complaints
$100/Event
June 9, 2020 Item #10 Page 265 of 286
Item
Specific Performance
Measure Definition
Acceptable
Performanc
e Level
Liquidated Damage
Amount
5. Failure to Answer Phones Any failure by Contractor
to answer a telephone call
from a Customer during
normal business hours. A
call is not deemed
answered if the Customer
does not speak with a live
operator. (A call is deemed
answered if the Customer
hangs-up or abandons the
call following a hold time
of less than three (3)
minutes.) Any failure to
have a Customer service
representative answer a
phone call within a two (2)
minute average for any
month and/or for each
single caller having to wait
more than ten (10)
minutes.
Less than
five (5) per
one
thousand
(1,000) Calls
Received
Under this
Agreement
$50/Event
6. Failure to Maintain Office
Hours
Failure to maintain office
hours as required by this
Agreement.
No
acceptable
failure level
$100/Event
7. Provision of Inaccurate
information
Each event of a Customer
Service Representative
providing inaccurate
information in response to
a Customer question or
Complaint.
No
acceptable
failure level
$50/Event
8. Unauthorized Hours of
Operation
Each occurrence of
Contractor Collecting from
Customers during
unauthorized hours.
Less than
two (2) per
one
thousand
(1,000)
Service
Opportuniti
es
$50/Event
9. Failure to Conduct Route
Audits and contamination
monitoring
Failure to conduct Route
Audits and contamination
monitoring as required by
this Agreement.
No
acceptable
failure level
$150/Audit/Day
June 9, 2020 Item #10 Page 266 of 286
Item
Specific Performance
Measure Definition
Acceptable
Performanc
e Level
Liquidated Damage
Amount
10 Failure to Issue
Contamination Notices
Failure to issue
contamination notices as
required by this
Agreement.
No
acceptable
failure level
$500/Route/Day
4. Performance Area: Diversion
Item
Specific Performance
Measure Definition
Acceptable
Performance
Level
Liquidated Damage
Amount
1. Failure to Meet the
Minimum Diversion
Requirements
Failure to meet the
minimum Diversion
requirements of this
Agreement. (Calculated
per Calendar Year.)
Less than
0.001%
Shortfall of
0.001% - 2%:
$10,000.00 per
calendar year.
Shortfall of
2.001% or greater:
$25,000.00 per
calendar year.
2. Failure to Perform
Education and Outreach
Activities
Each individual failure by
Contractor to develop,
produce, and distribute
public education material
or perform community
outreach activities in the
form and manner required
under Exhibit C to this
Agreement.
No
acceptable
failure level
$500/Activity
3. Failure to Provide
Targeted Technical
Assistance
Each individual failure to
provide targeted technical
assistance to a Commercial
or Multi-Family Customer
in the manner required
under Exhibit C to this
Agreement.
No
acceptable
failure level
$2,000/Customer
4 Failure of Diversion
Coordinator to Specifically
Perform
Every occurrence of a
Diversion Coordinator
being used for purposes
other than those specified
in this Agreement.
No
acceptable
failure level
$1,000/day
June 9, 2020 Item #10 Page 267 of 286
5. Performance Area: Facilities
Item Specific Performance Measure Definition
Acceptable
Performance Level
Liquidated
Damage Amount
1. Delivery to Non-
Approved Facility
Each individual occurrence of
delivering materials to a facility
other than the Approved
Facility designated for each
material type under Section 4
of this Agreement.
No acceptable
failure level
$5,000 first
failure.
$25,000 each
subsequent
failure.
2. Disposal of Targeted
Diversion Materials
Each individual occurrence of
delivering Recyclable
Materials, Organic Materials,
or Reusable Materials set out
for Collection by the Customer
for Disposal rather than
Processing.
No acceptable
failure level
$1,000/Load
3. Mixing Materials During
Collection
Each individual Container that
is Collected by Contractor in a
vehicle intended or designated
for the purpose of Collecting a
different material type (e.g.
Recyclable Materials Collected
in Solid Waste vehicle, Solid
Waste Collected in Organic
Materials vehicle, etc.)
No acceptable
failure level
$1,000/
Container
4. Commingling with Non-
City Materials
Commingling of materials
Collected inside and outside
the City during Collection.
No acceptable
failure level
$1,000/Event
5. Delivery to Disposal
Facility of Non-City
Materials commingled
with City Materials
Delivery to the Designated
Disposal Facility of any Solid
Waste Collected outside of the
City boundaries commingled
with that Collected as part of
this Agreement except for
material delivered in transfer
trailers.
No acceptable
failure level
$5,000 first
delivery.
$25,000 each
subsequent
delivery.
6. Failure to Provide
Adequate Capacity
Failure to provide adequate
primary and alternate capacity
to accept and Process
Recyclable Materials, or
Organic Materials.
No acceptable
failure level
$1,000/Day
June 9, 2020 Item #10 Page 268 of 286
Item
Specific Performance
Measure Definition
Acceptable
Performance
Level
Liquidated
Damage
Amount
7 Failure to Conduct Route
Audits and
contamination
monitoring
Failure to conduct Route
Audits and contamination
monitoring as required by this
Agreement.
No acceptable
failure level
$150/Audit/Day
8 Failure to Issue
Contamination Notices
Failure to issue contamination
notices as required by this
Agreement.
No acceptable
failure level
$50/occurrence
/Day
6. Performance Area: Reporting & Records
Item
Specific Performance
Measure Definition
Acceptable
Performance
Level
Liquidated
Damage
Amount
1. Late Report Each occurrence of a Report, as
required under Exhibit D to this
Agreement, being submitted
after the due date. Reports
shall be considered late until
they are submitted in a
complete and accurate format.
No acceptable
failure level
$250/Report/
Day
2. Failure to Maintain or
Provide Access to
Records
Each occurrence of City
Contract Manager requesting
information required to be
maintained by Contractor
where Contractor fails to
provide such information
within the time window
specified in this Agreement.
No acceptable
failure level
$500/Event
3. Misleading/Inaccurate
Reporting
Each occurrence of Contractor
providing misleading or
otherwise inaccurate
information or reporting to
City under or regarding this
Agreement. Typographical,
cell reference, mathematical,
and/or logic errors shall not be
considered legitimate excuses
from this requirement, nor
shall ignorance be excused.
No acceptable
failure level
$250/Event
June 9, 2020 Item #10 Page 269 of 286
Item
Specific Performance
Measure Definition
Acceptable
Performance
Level
Liquidated
Damage
Amount
4. Failure to Correct
Submittal of Inaccurate
Data in a Timely
Manner
Failure to correct submittal of
inaccurate data within three
(3) Business Days (or such
other time period as may be
agreed to in writing between
City and Contractor) of
notification by City.
No acceptable
failure level
$500/Day
5. Failure to maintain
and/or provide access
to Information Systems
Each day that Contractor fails
to provide access to
Contractor’s information
systems as required in Section
4.10 to the City Contract
Manager.
No acceptable
failure level
$500/Day
By placing Designee’s initials at the places provided, each Party specifically confirms the accuracy of the
statements made above and the fact that each Party has had ample opportunity to consult with legal
counsel and obtain an explanation of Liquidated Damage provisions of the time that the Agreement was
made.
Contractor City
Initial Here:_________ Initial Here: _________
June 9, 2020 Item #10 Page 270 of 286
This page intentionally left blank
June 9, 2020 Item #10 Page 271 of 286
EXHIBIT G:
CONTRACTOR’S PROPOSAL
To be included in final agreement
June 9, 2020 Item #10 Page 272 of 286
EXHIBIT G1:
TECHNICAL PROPOSAL
To be included in final agreement
June 9, 2020 Item #10 Page 273 of 286
EXHIBIT G2:
COST BASIS FOR PROPOSAL
To be included in final agreement
June 9, 2020 Item #10 Page 274 of 286
EXHIBIT G3:
INITIAL RATES FOR COLLECTION SERVICES
To be included in final agreement
June 9, 2020 Item #10 Page 275 of 286
EXHIBIT G4:
IMPLEMENTATION PLAN AND SCHEDULE
To be included in final agreement
June 9, 2020 Item #10 Page 276 of 286
EXHIBIT G5:
APPROVED SUBCONTRACTORS
To be included in final agreement
June 9, 2020 Item #10 Page 277 of 286
In accordance with Section 3.3 of the Agreement, the City has approved the following Subcontractors to
manage the specified services and otherwise assist the Contractor in the performance of the requirements
of this Agreement.
Approved Facility or Subcontractor Services
June 9, 2020 Item #10 Page 278 of 286
This page intentionally left blank
June 9, 2020 Item #10 Page 279 of 286
EXHIBIT H:
ANTICIPATED REQUIRED POSITIONS
To be included in final agreement
June 9, 2020 Item #10 Page 280 of 286
Exhibit H will be updated before execution of the Agreement
Positions detailed in this Exhibit H are the maximum anticipated positions needed for the provision of
Recycling, Organics, and Solid Waste Collection Services and other related services in the City.
Table 1 represents management positions, classified as salary, exempt. For positions where the employee
has been identified, the name is listed.
Table 2 represents non-management positions, classified as hourly, non-exempt. Contractor will be hiring
for these positions as per Section 5.6.B of the Agreement.
Table 1: Management Positions
Position Name Classification FTE
Management, Exempt
Management, Exempt
Management, Exempt
Management, Exempt
Management, Exempt
Management, Exempt
Management, Exempt
Management, Exempt
Management, Exempt
Management, Exempt
Total Management Positions
Table 2: Non-Management Positions
Position Name Classification FTE
Non-Management, Non-Exempt
Non-Management, Non-Exempt
Non-Management, Non-Exempt
Non-Management, Non-Exempt
Non-Management, Non-Exempt
Non-Management, Non-Exempt
Non-Management, Non-Exempt
Non-Management, Non-Exempt
Non-Management, Non-Exempt
Non-Management, Non-Exempt
Non-Management, Non-Exempt
Non-Management, Non-Exempt
Non-Management, Non-Exempt
Total Non-Management Positions
June 9, 2020 Item #10 Page 281 of 286
This page intentionally left blank
June 9, 2020 Item #10 Page 282 of 286
EXHIBIT I:
ENVIRONMENTALLY PREFERABLE PURCHASING
POLICY
To be included in final agreement
June 9, 2020 Item #10 Page 283 of 286
ATTACHMENT 8
PROPOSER’S STATEMENT OF COMPLIANCE WITH CITY OF CARLSBAD’S INSURANCE REQUIREMENTS (Please see Contract, Section 10)
The Proposer must attach either of the following items to this page, and submit with his/her proposal: 1) Certificates of insurance showing conformance with the city’s contract insurance
requirements herein for:
Comprehensive General Liability – $10,000,000 combined single limit per occurrence for bodily injury, personal injury, and property damage.
Automobile Liability – $10,000,000 combined single limit per accident for bodily injury and property damage (include coverage for Hired and Non-owned vehicles).
Workers’ Compensation – Statutory Limits/Employers’ Liability- $1,000,000/accident for bodily injury or disease.
Employee Blanket Fidelity Bond – $500,000 per employee loss covering dishonesty, forgery, alteration, theft, disappearance, and destruction (inside or outside).
OR 2) Statement with an insurance carrier’s notarized signature stating that the carrier can, and upon payment of fees and/or premiums by the Consultant, will issue to the Consultant policies of insurance for Comprehensive General Liability, Automobile Liability, Workers’ Compensation and Employer’s Blanket Fidelity Bond in conformance with the requirements herein and Certificates of Insurance to the city showing conformance with the requirements herein.
All certificates of insurance and statements of willingness to issue insurance for auto policies offered to meet the specification of this contract must:
1) Meet the conditions stated in the included contract for each insurance company that the Consultant proposes.
2) Cover any vehicle used in the performance of the contract, used onsite or offsite, whether owned, non-owned or hired, and whether scheduled or non-scheduled. The auto insurance certificate must state the coverage is for "any auto" and cannot be limited in any manner. Within ten (10) working days after city’s notification of award of contract to Proposer all required insurance documents must be submitted to Contract Administration. Proposer ‘s failure to provide the city-required insurance certificates showing specified coverage within this time frame may be cause for the contract award to be rescinded at the city’s sole discretion. _____________________________________
Proposer’s Acknowledgement (signature)
June 9, 2020 Item #10 Page 284 of 286
EXAMPLERESOLUTION NO. 2019-04RESOLUTION OF THE WEST VALLEY SOLID WASTE MANAGEMENT AUTHORITY ADOPTING A CODE OF CONDUCT FOR THE 2019/2020 DISPOSAL PROCUREMENT PROCESS
Whereas, the Authority is a joint powers authority between the Cities of Campbell, Monte Sereno and Saratoga and the Town of Los Gatos (“Member Agencies”);
Whereas, the Board Members of the Authority are obligated to comply with the Political Reform Act of 1974 (“PRA”) to control conflicts of interests through, among other things, disclosure of financial interests;
Whereas, the West Valley Solid Waste Management Authority (“Authority”) is in the process of requesting and receiving proposals for the disposal of solid waste within the jurisdiction of the Authority (“Procurement Process”); and
Whereas, the Board of Directors of the Authority desires to maintain a professional process freefrom any undue influence and the appearance of impropriety by complying with the PRA and adopting
additional regulations regarding the Procurement Process.
THEREFORE, the West Valley Solid Waste Management Authority hereby adopts the Code of Conduct for the Procurement Process attached hereto as Appendix A.
Regularly adopted and passed this 30th day of May, 2019, by the following vote:
AYES: NOES: ABSENT:
APPROVED:
__________________________ Paul Resnikoff, Chairperson
ATTEST:
_______________________________ Marva M. Sheehan, Executive Director
EXHIBIT 2
June 9, 2020 Item #10 Page 285 of 286
EXAMPLEAPPENDIX A WEST VALLEY SOLID WASTE MANAGEMENT AUTHORITY CODE OF CONDUCT FOR PROCUREMENT PROCESS POTENTIAL CONFLICT OF INTEREST. Each Board Member shall inform the Executive Director
of the Authority and each elected official of the Member Agencies ("Elected Official") shall inform the staff of his or her Member Agency of any potential conflicts of interest regarding potential proposers for solid waste services for the Authority ("Potential Proposers"). Information regarding potential conflicts shall be provided within 10 days of the Board Member or Elected Official learning of the potential conflict.
CONTRIBUTIONS. No Board Member or Elected Official shall accept any contributions by Potential Proposers from the date of adoption of this code from May 30, 2019 until the procurement is finalized and a new contract executed. Each Board Member and Elected Official shall disclose all past contributions from Potential Proposers to the Executive Director of the Authority.
PROHIBITED CONTACTS. No Board Member or Elected Official shall have non-public meetings
or conversations with Potential Proposers from the date of adoption of this code until the procurement is finalized and a new contract is executed regarding the Procurement Process or any matters involving the Potential Proposers. However, this section shall not prohibit Board Members and elected officials from meeting with Potential Proposers for purely social reasons. All Board Members and Elected Officials shall
refer any questions regarding the Procurement Process to the Executive Director of the Authority. Board Members and Elected Officials shall disclose to the Executive Director of the Authority any non-public
meetings or conversations with Potential Proposers regarding the Procurement Process which occurred prior to the adoption of this code. A "non-public" meeting is any meeting that has not been called and held in accordance with the Brown Act.
June 9, 2020 Item #10 Page 286 of 286
All Receive -Agenda Item # __lQ_
For the Information of the:
CITY COUNCIL·
Date ~ CA ~ cc ~
CM ::!_ ACM ~ DCM (3) ~
June 9, 2020
Council Memorandum
· {cityof
Carlsbad
To: Honorable Mayor Hall and Members of the City Council
From: Paz Gomez, Deputy City Manager, Public Works •
Geoff Patnoe, Assistant City Manager ij Via:
Re: Additional Information Related to Sta'in(eport Item No. 10 -Sustainable Materials
Management Update on Solid Waste Franchise Agreements for Collection, Processing
and Disposal Services
This memorandum provides additional information in response to a question asked during
Council briefings related to solid waste rates of other North County cities for the June 9, 2020
City Council Meeting Item No. 10 -Sustainable Materials Management Update on Solid Waste
Franchise Agreements for Collection, Processing and Disposal Services. The table below contains
proposed rates for other North County cities for fiscal year 2020-21.
Residential
Trash Franchise City Service hauler (64-or 96-
gallon cart)
WM City of Carlsbad $23.88
WM City of Del Mar $23.35
WM City of Oceanside $22.84
EDCO City of Encinitas . $22.15
EDCO City of Escondido $21.61
EDCO City of Poway $22.78
EDCO City of San Marcos $23.61
EDCO City of Solana $24.32 Beach
EDCO City of Vista $22.57 .
cc: Scott Chadwick, City Manager
Celia Brewer, City Attorney
James Wood, Environmental Manager
Public Works Branch
Environmental Management Department
Residential
Trash Service
(35-gallon
cart)
$21.77
$16.60
$20.17
$14.50
Not
applicable
$15.73
Not available
$23.44
$19.06
1635 Faraday Ave I Carlsbad, CA 92008 I 760-602-2730 t
Commercial Commercial
Trash Service-Recycling
one pick-up Service-
one pick-up per week
(3-yard bin) per week
(3-yard bin)
$115.86 $84.10
$126.96 $40.56
$118.21 $58.40
$110.40 $107.22
$111.56 $57.79
$116.43 $43.57
$121.47 $49.77
$121.12 $64.15
$122.07 Not
available
Tammy Cloud-McMinn
All Receive -Agenda Item# / 0
For the Information of the:
From: Lisa Rodman <lisa@aguahedionda.org>
Sent: · Monday, June 8, 2020 10:01 AM
City Clerk To:
Subject: #10. SUSTAINABLE MATERIALS MANAGEMENT UPDATE ON SOLID WASTE FRANCHISE
AGREEMENTS FOR COLLECTION, PROCESSING AND DISPOSAL SERVICES
Dear Esteemed Council:
Waste Management (WM} has been Agua Hedionda Lagoon Foundations service provider for 10 +years . I've been
at the foundation for 10 years and they were here before me. WM has provided excellent service and their drivers
are professional and friendly. Anytime we pick up the phone with a question or need they respond so quickly and
efficiently. Today is no exception. We are asking for a new dumpster after the Red Algae choked out so many fish
and we cleaned up 30 trash bags full of fish and left the dumpster spoiled. They've actively supported the
foundations work in many ways. They have been a part of our community events and lend a hand wherever and
whenever possible. They know our needs and they know this community.
If there is a change certainly a company that has been serving Carlsbad for 35 years should have an opportunity to
renegotiate a contract. Please consider working with our current trash provider that has served us so well in the
past. Building this relationship took time and it would seem prudent to make sure there is an opportunity for them
to continue here in Carlsbad.
Thank you for taking the time to listen our concerns,
Lisa Rodman
Chief Executive Officer
Agua Hedionda Lagoon Foundation ~ Discovery Center
1580 Cannon Road Carlsbad CA 92008
Office 760.804.1969 Cell 760.271.1356
www.aguahedionda.org
our MeV1.-tbers. Mf;lR.e Lt t-tf;l:p:pe~ -ceLebrf;lHvyg 30 bjef;lrs.!
CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content
is safe.
1
Tammy Cloud-McMinn
From:
Sent:
To:
Subject:
Marta Hall <martahall888@gmail.com>
Monday, June 8, 2020 11 :08 AM
City Clerk
Waste Management
Dear Mayor and Councilmembers,
All Receive -Agenda Item#/ 0
For the Information of the:
CIJY COUNCIL
Date (jJj___:___ CA v CC v
CM ~CM ..-OCM (3) ✓
I am writing to you to please give Waste Management a chance to keep our community free of waste,
recycling etc!!!
Waste Management has been our service provider for over 35 years in the City of Carlsbad. They provide excellent
service . Drivers are professional and friendly and go out of their way to be courteous and helpful. I find them easy to
work with and whenever I have had to contact them they are helpful and reso.lve my issue promptly. Great customer
service!
I am questioning why the city is considering looking for another company who doesn't know our city and has not
invested in it like Waste Management. The City should try and work with them to renew the contract before opening it
up to other haulers who don't have the experience in Carlsbad like Waste Management does.
PS I am a member of Soroptimist and Waste Management has been a great supporter of women and
girls in our community! They also support the concerts in the park, which I attend on a regular basis,
and the Agua Hedionda Lagoon Discovery Center, another place I visit regularly.
Marta Hall
Coldwell Banker Carlsbad
CA DRE License# 00598173
Cell (760)809-7131
Fax (760)804-8222
martahall888@gmail.com
1
Mayor, city council members,
All Receive -Agenda Item # .i{)
For the Information of the:
• Cl"f'ti COUNCIL
Date .!LJ._:j__ CA v""CC V--
CM ..,..--ACM ......--DCM (3)_.......------
Tonight you're hearing about the start of the proposal process for solid and
organic waste collection, processing and disposal services. It is my understanding
that previous agreements have precluded the diversion of waste from the
contracted stream. You will be soon deciding upon agreements with companies
to collect and process organic wastes not just from commercial enterprises but
also from residences.
As you consider the next set of proposals I would suggest that any agreements
include the ability for neighborhoods to process their own organic wastes. Why
do this? I can think of a number of reasons. First, it reduces transportation costs
and, thereby, greenhouse gas emissions. Second, the benefits, mature compost,
is available for neighbors. This better connects our residents with nutrient cycles
and their connection to the natural world. And third, it builds a better sense of
community. It's a great model for sustainability, one of Carlsbad's core values.
A year ago when the Sustainable Materials Management Plan was brought before
you for approval, I suggested you institute a pilot neighbor composting program
similar to what the Solana Center in Encinitas does to engage its residents and
divert organic waste. Not wanting to wait years for the city to act, a few of my
neighbors and I in the last few months have set up our own program. We will
shortly be harvesting our first compost. The city needs to be aspirational and
consider ways of engaging our residents in solving some of our problems allowing
the city to become a better leader in sustainability.
Thank you.
Paige DeCino
Carlsbad
Tammy Cloud-McMinn
From:
Sent:
To:
Subject:
All Receive -Agenda Item # J..O
For the Information of the:
Date CA v CC ✓ "tl!i..911 DI GIi
Bret Schanzenbach <Bret@carlsbad.org> CM_..,-ACM ~CM (3) --
Tuesday, June 9, 2020 1 :37 PM
City Clerk
#10. SUSTAINABLE MATERIALS MANAGEMENT UPDATE ON SOLID WASTE FRANCHISE
AGREEMENTS FOR COLLECTION, PROCESSING AND DISPOSAL SERVICES
Dear Mayor Hall and Council members,
Thank you for your time today. My name is Bret Schanzenbach and I am the President and CEO of the Carlsbad Chamber.
We would like to encourage you to engage Waste Management in a discussion about the City of Carlsbad's future waste
needs before going to a full RFP.
Waste Management has served our community for nearly 40 years and has been a great community partner. They have
supported the community, businesses, and nonprofit organizations.
They have also evolved and innovated as sustainable principles and requirements have developed.
They are a great asset to the community in Carlsbad and their years of service are meaningful.
With that, we request that Waste Management be given the first opportunity to meet with staff and discuss the city's
future needs.
Respectfully,
Bret Schanzenbach
President & CEO
Carlsbad Chamber of Commerce
CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content .
is safe.
1
ORGANICS, RECYCLING, AND SOLID WASTE
COLLECTION & PROCESSING SERVICES
PROCUREMENT PROCESS OVERVIEW
City of Carlsbad
City Council
June 9, 2020
1
AGENDA
Background
Regulatory Drivers
Collection Contract
Transfer Station Contract
Stakeholder Input
Process Integrity
2
CURRENT SOLID WASTE SYSTEM
3
Palomar Transfer Station
Agreement Exp: June 2022
Lease Exp: May 2027
Coast Waste Management
[Collection & Recycling]
Exp: 6/30/2022
Landfill Disposal Green Waste ProcessingOrange MRF
Recyclables Processing
Delivers Solid Waste & Green Waste
w ®
WASTE MANAGEMENT
w ®
WASTE MANAGEMENT
{city of
Carlsbad
t::c,R'"TJ
~i\
REPUBLIC
SERVICES
tfcRT-
~i\
REPUBLIC
SERVICES
REGULATIONS AFFECTING SCOPE
Regulations considered during negotiation process:
AB 939
AB 341
AB 1826 (CalRecycle Letter of Concern, March 2019)
AB 1594
SB 1383
Carlsbad’s Sustainable Materials Management Plan
NPDES Storm Water Permit Compliance
4
SB 1383 OVERVIEW
Ordinances
Mandatory organics, food
recovery, and enforcement
ordinances.
Edible Food Recovery
Collaboration among commercial
edible food generators, food
recovery organizations, and the
City.
Collection & Processing
Mandatory organic collection
and transportation to
appropriate recovery facilities.
Monitoring & Enforcement
Contamination monitoring
procedures and enforcing non-
compliance.
Product Procurement
City’s organic waste
procurement practices meets
state-set quotas.
Education & Outreach
Public education materials,
including the benefits of
organics recycling.
5
Record Keeping & Reporting
Gather and submit reports to CalRecycle on initial and continuing compliance
r:tq)
~
COLLECTION PROCUREMENT APPROACH
6
Conduct Competitive RFP for Services
Assures City Council of “Best Value” in uncertain times
Provides greatest flexibility on SB 1383 (substantial effort)
Separate proposals/agreement for organics processing
Adequate time remaining on current contract to do RFP
Proposals Requested
Base Proposal –Nearly Identical to Current System
SB 1383 Proposal –Mandatory Recycling/Organics
Alternative Proposals –10 “A la Carte” program options
Organics Processing Proposal –Separate from Collection
COLLECTION CONTRACT
SINGLE FAMILY SERVICES
Single family homes and multi-family complexes < 5 Units
Organics
Mandatory
Sizes: 32-, 64 -, 96 gal
Frequency: weekly
Up to 2 Additional
carts at no charge
Recycling
Mandatory
Sizes: 32-, 64 -, 96 gal
Frequency: weekly
Up to 2 Additional carts
at no charge
Household Batteries
OCC/bundle boxes
Used Oil & Filter(s)
Cooking Oil Collection
Solid Waste
Mandatory
Sizes: 32-, 64 -, 96 gal
Frequency: weekly
Volume -Based Rates
Additional Carts for $
Food Waste
Mandatory
Sizes: 32-, 64 -gal
Compostable bags
to collect food
Indicates new feature
Alternate Proposal
7
~--·-·-·-· -. -I • - •
= -. -. -·-·-·-· I -. -..
.. ..
COLLECTION CONTRACT
MULTI-FAMILY SERVICES
Multi-family complexes with 5 or more units
Organics
Mandatory
Sizes: 32-, 64 -, 96 gal
1-4 cubic yards
Frequency: at least
1/wk, up to 6/wk
Push/pull of
containers, up to 25
ft at no charge
Recycling
Mandatory
Sizes: 32-, 64 -, 96 gal
1-6 cubic yards,
3 cubic yard split bin
Frequency: at least 1/wk,
up to 6/wk
Push/pull of containers,
up to 25 ft at no charge
Solid Waste
Mandatory
Sizes: 32-, 64 -, 96 gal
1-6 cubic yards,
3 cubic yard split bin
Frequency: at least 1/wk,
no more than 3/wk
Push/pull of containers,
up to 25 ft at no charge
Food Waste
4-cart option
Sizes: 32-, 64 -gal
1-2 cubic yards
Compostable
bags for food
Alternate
Proposal
Indicates new feature 8
.. .. .. .. .. ..
~·-·-·-·-·-·-· I
·-·-·-·-·-·-·~
COLLECTION CONTRACT
RESIDENTIAL EXTRA SERVICES
Holiday tree pickup
ADA valet service (SF only)
Bulk Mulch/Compost (2,000 CY/yr)
Compost Give-a-way (1000 CY/yr)
Revised on-call bulky item collection (up to 3/yr)
On-call E-waste collection (up to 3/yr)
Sharps waste collection (up to 10/yr)
Shredding events (up to 2/yr)
Pharmaceutical collection event (up to 2/yr)
Container cleaning 1x per year
Indicates new feature 9
COLLECTION CONTRACT
COMMERCIAL SERVICES
Commercial Businesses
Organics
Mandatory
Sizes: 32-, 64 -, 96 gal
1-2-cubic yards
Frequency: 1 -6/wk
Push/pull of
containers, up to 25
ft at no charge
Recycling
Mandatory
Sizes: 32-, 64 -, 96 gal
1-6 cubic yards,
3 cubic yard split bin
7-, 20 -, 30-, and 40-cubic
yard drop box
Frequency: 1 -6/wk
Push/pull of containers,
up to 25 ft at no charge
Solid Waste
Mandatory
Sizes: 32-, 64 -, 96 gal
1-6 cubic yards,
7-, 20-, 30 -, and 40-
cubic yard drop box
Frequency: at least 1/wk,
No more than 3/wk
Push/pull of containers,
up to 25 ft at no charge
Food Waste
4-cart option
Sizes: 32-, 64 -gal
1-2 cubic yards
Compostable
bags for food
Alternate
Proposal
Indicates new feature 10
= .. ..
.. ..
~·-·-. ·-·-·-. -.
. -. -. -. -. . -. -. ~
COLLECTION CONTRACT
TERMS
Modernized, State-of-the-Industry Agreement Structure
Duration: 10 years w/ City’s option to extend for 5 years
Enhanced local customer service function
Modernized, flexible education & outreach program
Expanded recordkeeping & reporting for SB 1383
Contractor responsible for recyclables processing
City direction or integration of organics processing
Continue delivery of material to Palomar Transfer Station
11
COLLECTION CONTRACT
COMPENSATION AND RATES
Hauler compensation approach:
Annual index adjustment
Annual multi-index adjustment
Cost-based review for change in law/scope
City Reimbursements
Franchise fee: Historically @ 7.5% of Gross Receipts
AB 939/SB 1383 fee: 2% of Gross Receipts
Storm water fee: set by City, not subject to franchise fee
Option to transition all billing to Contractor
12
COLLECTION RFP PROCESS & SCHEDULE
13
Activity Target Completion
Date
Release RFP for Collection and Processing Services Mid June 2020
Conduct community/stakeholder outreach September 2020
Receive proposals September 2020
Evaluate proposals November 2020
Negotiate franchise with finalist(s)December 2020
Present recommended contract to City Council February 2021
Preparation for implementation of approved contract Feb-Dec 2021
Implementation of services to customers January –June 2022
PALOMAR TRANSFER STATION CONTRACT
BACKGROUND
Current Transfer/Disposal Agreement Term: July 1, 2012 –June 30, 2022
Current Lease Term: June 1, 2002 –May 31, 2027
Diversion Requirement: 2% (not currently being achieved)
Current Services:
Transfer and Transport of Solid Waste
Disposal of Solid Waste in Permitted Landfill
Transfer and Transport of Yard Trimmings (potential removal depending on collection)
3rd Party Processing of Yard Trimmings (potential removal depending on collection)
Desired New Services:
PTS to operate recycling drop-off and buy-back (transitioned from collection)
Increased recovery of C&D and organics (SB 1383 compliance)
14
PALOMAR TRANSFER STATION CONTRACT
PROCESS & SCHEDULE
15
Activity Target Completion
Date
Negotiations with Republic August 2020 -May 2021
Presentation of agreement for City Council approval July 2021
Potential early start of services January 2022
Start of extended term July 2022
PROCUREMENT PROCESS INTEGRITY POLICY
Goals:
Protect integrity of communications in RFP/negotiations process.
Protect City Council and individual members from liability related to negotiations
Ensure consistency and accuracy of communication with potential contractors
Applicability:
Communications between Council members and proposers (and their representatives)
Collection & Organics Processing RFP
Negotiation of PTS Extension
Approved Communication:
Designated staff representative in RFP/negotiations process
With the Council or other Staff at open public meeting
With staff members any organized staff meetings with prospective proposers.
Limitations:
Only those conversations that relate to the procurement process or provision of services.
It is not intended to apply to casual social communications or other communications unrelated to provision of future services or the procurement process.
16
SUSTAINABLE MATERIALS MANAGEMENT SYSTEM CHANGES
STAKEHOLDER ENGAGEMENT
Customer survey of services, programs, and rates
Council briefings and workshops (as needed)
Community meetings (virtual, if needed)
Targeted meetings with businesses, multi-family
complexes, and restaurants impacted by changes
17
NEXT STEPS
Issuance of RFP for recycling, organics, and solid
waste collection and organics processing.
Staff to negotiate with Republic Services to extend
operating agreement to be coterminous with the
lease agreement for PTS and make minor service
realignments to match collection system.
Consider implementation of communication policy
between potential contractors and Council.
18
Questions?
19