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HomeMy WebLinkAboutS23 - Newport Coast Residential Refuse Collection ServicesCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 823 May 8, 2007 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: General Services Department Mark Harmon, Director, (949) 644 -3055 mharmon aOcitv.newoort- beach.ca.us SUBJECT: Contract Award to CR &R Inc. for Newport Coast Fully Automated Residential Refuse Collection Services ISSUE: Should the City award a ten -year contract agreement to CR &R, Inc. to provide fully automated residential refuse collection services in the Newport Coast area or should the City Council go with another provider? RECOMMENDATION: Authorize a ten -year agreement with CR &R, Inc. through June 30, 2017 to provide fully automated residential refuse collection services in the Newport Coast area. DISCUSSION: Background The 7,700 -acre Newport Coast community is located at the eastern edge of the City.and contains private residences In six major community associations, including the Newport Ridge, Newport Ridge North, Newport Coast, Ziani, Pelican Point, and Crystal Cove Community Associations. On January 1, 2002, the City annexed the Newport Coast community, and in doing so, agreed to fund residential trash collection services for area residents. At the time of annexation, Waste Management of Orange County provided fully automated residential refuse collection services to the area under an exclusive franchise agreement with the County of Orange. Pursuant to State law (Public Resources Code Section 49520), the City was required to continue service with the exclusive franchisee for a minimum of five Award Contract for Newport Coast Fully Automated Residential Refuse Collection Services May 8, 2007 Page 2 years, and Waste Management has continued to provide this service throughout this period. Prolect Description/Scope of Services The current contract for residential refuse collection services expires on June 30, 2007. The scope of work in the proposed contract includes providing collection services to approximately 4,000 residences in the Newport Coast area of the City. It is projected that the Newport Coast area will total approximately 5,200 residences at build out. The area served in this agreement includes neighborhoods along Newport Coast Drive from east Coast Highway to the 73 Freeway in the eastern section of the City. Bin service in the Newport Coast area will not be included with this agreement. To ensure that a high standard of service is maintained, specifications for the collection of materials are detailed in the request for proposal and the proposed agreement. These specifications include: automated container types and sizes, minimum waste collection levels, collection days and times, waste disposal and recycling requirements, insurance requirements, and equipment requirements. Service levels will be monitored by City staff who will also review the contractor's required reports of collection and disposal activities. The term of the proposed contract is for ten years due to the large commitment of personnel and equipment required to provide initial service. An annual CPI increase is included after the 1st year of service. Experience has proven that a multi -year contract is the most cost- effective means to have solid waste collection services performed for both the City and the contractor. Bid Process and Analvsis A Request for Proposals (RFP) was mailed to a list of the City's franchised commercial solid waste haulers at the beginning of April. Since this time, staff has received inquiries and provided clarification on items included in the RFP. Proposals were due to the City by Friday, April 20"' at 12 pm. Prior to this deadline, the City received 5 bids for solid waste collection services from the following solid waste haulers: • CR&R Inc. • Rainbow Disposal • Ware Disposal • Waste Management of Orange County • Waste Resources/Robert's Waste Award Contract for Newport Coast Fully Automated Residential Refuse Collection Services May 8, 2007 Page 3 Evaluation Criteria Proposals submitted to the City were reviewed by City staff from General Services, the City Attorney's Office, and the City Manager's Office. As indicated in Section 3 of the RFP sent to bidders, fee schedules and costs are not the sole criteria for award of this agreement. Instead, evaluation criteria for the proposals included several categories. Based on these criteria, staff compiled the following information from each bidder: AQMD Approved Vehicles This section was used to evaluate the requirement that the bidder provide collection services using alternative fueled vehicles approved by the South Coast Air Quality Management District for fully automated refuse collection services. CR &R Currently has over 70 AQMD approved alternative fueled vehicles in its fleet. No additional trucks will be needed to meet the terms of the agreement. In its bid proposal, CR &R proposed to use AQMD approved alternative fueled vehicles in service collection for Newport Coast. Rainbow Disposal Currently has 10 AQMD approved alternative fueled vehicles in its fleet. In addition, this hauler is in the process of procuring an additional 14 alternative fueled vehicles to add to its fleet. In its bid proposal, Rainbow Disposal proposed to use AQMD approved alternative fueled vehicles in service collection for Newport Coast. Ware Disposal Currently has no AQMD approved alternative fueled vehicles in its fleet. In its bid proposal, Ware Disposal proposed to use a diesel fueled vehicle in service collection for Newport Coast. Diesel fuel does not satisfy requirements for an alternative fueled vehicle per SCAQMD Rule 1193. In subsequent communications with City staff after the close of bids on April 20, Ware Disposal changed their proposal to include the use of alternative fueled vehicles for the term of the agreement. Ware Disposal now proposes to purchase AQMD approved alternative fuel vehicles to satisfy the proposal requirement. Waste Management Currently has 48 AQMD approved alternative fueled vehicles in its fleet. No additional trucks will be needed to meet the terms of the agreement. In its bid proposal, Waste Management proposed to use AQMD approved alternative fueled vehicles in service collection for Newport Coast. Award Contract for Newport Coast Fully Automated Residential Refuse Collection Services May 8, 2007 Page 4 Waste Resources /Robert's Waste Currently has no AQMD approved alternative fueled vehicles in its fleet. In its bid proposal, Waste Resources /Roberts Waste proposed to use a bio- diesel fueled vehicle in service collection for Newport Coast. Bio- diesel does not satisfy requirements for an alternative fueled vehicle per SCAQMD Rule 1193. In subsequent communications with City staff after the close of bids on April 20, Waste Resources/Robert's Waste indicated that they would be willing to acquire alternative fueled vehicles for the term of the agreement to satisfy the proposal requirement. Cost Information "Cost estimates do not include projected growth of 25 homes per month. Fully Automated Experience This section was used to evaluate the bidder's experience and performance providing fully automated collection services for other public agencies. J Waste Hauler Proposed Cost Current Proposed Cost Current Estirnated Per Residence Numberof Per AdO Number of Total Cost Residences Containers Add'I Containers "Cost estimates do not include projected growth of 25 homes per month. Fully Automated Experience This section was used to evaluate the bidder's experience and performance providing fully automated collection services for other public agencies. Award Contract for Newport Coast Fully Automated Residential Refuse Collection Services May 8, 2007 Page 5 CR &R Currently manages over 250,000 fully automated accounts throughout the region and has approximately 20 years experience providing fully automated services. These accounts total approximately 500,000 fully automated containers in service. CR &R currently provides fully automated collection services for several local communities, including the cities of Costa Mesa, Aliso Viejo, Dana Point, San Clemente, San Juan Capistrano, and Laguna Niguel. Rainbow Disoosal Currently manages over 30,000 fully automated accounts throughout the region and has approximately one year experience providing fully automated services. These accounts total approximately 100,000 fully automated containers in service. Rainbow Disposal currently provides collection services for several local communities, including the cities of Sunset Beach, Huntington Beach, and Fountain Valley. Ware Disposal Currently manages over 1,500 semi - automated accounts throughout the region and has over a year and a half experience providing these services. These accounts total approximately 3,000 containers in service. Ware Disposal currently provides collection services for the City of Laguna Woods. Waste Management Currently manages over 200,000 fully automated accounts throughout the region and has approximately 20 years experience providing fully automated services. These accounts total approximately 600,000 fully automated containers in service. Waste Management currently provides collection services for several local communities, including the cities of Irvine, Laguna Beach, Lake Forest, Orange, and Santa Ana. Waste Resources /Robert's Waste Currently manages no automated accounts throughout region. Waste Resources currently provides commercial collection services for the City of Gardena and Robert's Waste provides commercial collection services for the City of Newport Beach. Recycling Requirement This section was used to evaluate the bidders ability to meet local and state waste disposal and recycling requirements. CR &R Provided evidence on how it would meet a 30% diversion requirement. Award Contract for Newport Coast Fully Automated Residential Refuse Collection Services May 8, 2007 Page 6 In addition, CR &R currently operates a mixed waste materials recovery facility for processing waste. This process helps to provide up to 10% additional diversion of recyclable materials in the sorting process due to contaminated recycling loads. This occurs when materials other than recyclables are placed in a recycling container. Rainbow Disposal Provided evidence on how it would meet a 30% diversion requirement. In addition, Rainbow Disposal currently operates a mixed waste materials recovery facility for processing waste. This process helps to provide up to 10% additional diversion of recyclable materials in the sorting process due to contaminated recycling loads. This occurs when materials other than recyclables are placed in a recycling container. Ware Disposal Provided evidence on how it would meet a 30% diversion requirement. In addition, Ware Disposal currently operates a commingled recycling materials recovery facility for processing waste. This process does not provide additional diversion of recyclable materials. Waste Management Provided evidence on how it would meet a 30% diversion requirement. In addition, Waste Management currently operates a mixed waste materials recovery facility for processing waste. This process helps to provide up to 10% additional diversion of recyclable materials in the sorting process due to contaminated recycling loads. This occurs when materials other than recyclables are placed in a recycling container. Waste Resources/Robert's Waste Provided evidence on how it would meet a 30% diversion requirement. In addition, Waste Resources /Robert's Waste currently utilizes a commingled recycling materials recovery facility for processing waste. This process does not provide additional diversion of recyclable materials. Implementation Plan This section was used to evaluate the bidder's ability to facilitate a seamless transition of collection services between service providers. Award Contract for Newport Coast Fully Automated Residential Refuse Collection Services May 8, 2007 Page 7 CR &R Hauler has successfully managed service changeovers between solid waste providers. These changeovers include the cities of Laguna Hills, Bellflower, and Rancho Santa Margarita. In addition, CR &R currently has over 15,000 containers in stock that will be available for Newport Coast residents prior to the July 1 start date. Rainbow Disposal Hauler has successfully managed service changeovers between solid waste providers. These changeovers include the City of Huntington Beach and the Midway City Sanitary District. In addition, Rainbow currently has over 10,000 containers in stock that will be available for Newport Coast residents prior to the July 1 start date. Ware Disposal Hauler has successfully managed a service changeover between solid waste providers in the City of Laguna Woods. In addition, Ware Disposal proposes to order approximately 8,000 containers for Newport Coast residents prior to the July 1 start date. Waste Management Hauler is the current service provider for Newport Coast; therefore, no implementation plan or new containers would be necessary. Waste Resources /Roberts Waste Hauler did not provide evidence of a service changeover between solid waste providers. In addition, Waste Resources /Robert's Waste proposes to order approximately 8,000 containers for Newport Coast residents prior to the July 1 start date. A Last Factor for Consideration City staff has concerns that companies which have not been providing fully automated collection services do not have the level of experience with automated vehicles needed to match the current level of service being provided. The ability to provide the collection services as "quietly" and as safely as possible, in terms of potential property damage, is a factor for consideration. Driver inexperience with using automated containers and the vehicles themselves have the potential to create problems with providing a seamless transition. Award Contract for Newport Coast Fully Automated Residential Refuse Collection Services May 8, 2007 Page 8 Financial Review /Financial Availability Funding for this agreement was included in the Fiscal Year 2007 -08 budget. The current cost for Newport Coast collection services, based on the current monthly fee of $15.03 per home, is $739,536. Based on the bid from CR &R Disposal of $13.57 per home, staff estimates that the total cost for collection services will be $667,236. This cost represents a savings of $72,300 next fiscal year and over $700,000 during the life of the agreement. Current ill Rainbow Disposal Bid Ware Disposal Bid Waste Management Bid Waste Resources /Roberts Bid Recommendation Monthly Cost Per Home Total Annual Cost $15.03 $739,536 $13.57 $667,236 $14.95 $737,448 $11.96 $616,200 $15.03 $739,536 $18.29 $974,712 Based on the evaluation of bids using the criteria above, City staff believes the proposal from CR &R Inc. will provide the best value for the City and the residents of Newport Coast in terms of a combination of service quality and cost. CR &R has provided solid waste collection and material recovery services in Orange, Los Angeles, San Bernardino, San Diego, and Riverside Counties for approximately 40 years. Through a subsidiary, CR &R currently provides fully automated solid waste and recycling collection services to several nearby cities, including Costa Mesa, Aliso Viejo, Dana Point, San Clemente, San Juan Capistrano, and Laguna Niguel, among others. However, if the City Council believes the cost of the service provided is the most important factor in selecting the waste contractor, the lowest cost provider would be Ware Disposal. Award Contract for Newport Coast Fully Automated Residential Refuse Collection Services May 8, 2007 Page 9 Environmental Review: This project does not require environmental review. Public Notice: This agenda item may be noticed according to the Ralph M. Brown Act (72 hours in advance of the public meeting at which the City Council considers the item). Legal Review The City Attorney's Office participated in the development of the Request for Proposals and the evaluation of proposals submitted to the City. Based on the evaluation using the established criteria, the City Attorney's Office advised that awarding an agreement to CR &R is in conformance with the law because the City should consider all factors and not just price in reviewing the requests for proposal. General Services Director Reviewed by: o,.'�— (� _ Cti.—_ Aaron Harp Assistant City Attorney Attachments: PreO'� pared by: ff4z�J'11� Chri s Marcarello Administrative Analyst 1. Request for Proposals for Residential Solid Waste Collection and Recycling in Newport Coast 2. Proposed Contract for Fully Automated Solid Waste Collection Services CITY OF NEWPORT BEACH Request for Proposal Residential Solid Waste Collection and Recycling Services in Newport Coast City of Newport Beach Request for Proposal Residential Solid Waste Collection and Recycling Services in Newport Coast 1. Introduction The City of Newport Beach (City) is soliciting written competitive proposals from private contractors to provide fully automated solid waste collection and recycling services for residential customers within the Newport Coast area of the City. After a careful review of each submitted proposal, the City will conduct an evaluation leading to the selection of a contractor and the award of a contract. The resultant contract is intended as a ten -year contract. Newly developed areas of Newport Coast may be added to the contract. The City's objectives for the solid waste collection and recycling services are to: • Provide an efficient solid waste management system, which includes mandatory collection of solid waste and recyclable materials. • Preserve the environment and protect the health, safety and quality of life for Newport Beach residents. • Comply with the State of California Assembly Bill 939, known as the California Integrated Waste Management Act of 1989, which requires jurisdictions to divert from disposal in landfills 50% of the solid waste generated within the City. Copies of this proposal may be obtained in person at the Administration office of the General Services Department located at 592 Superior Avenue, Newport Beach. Questions regarding this agreement should be addressed to Chris Marcarello, Administrative Analyst at (949) 644 -3057. Proposals and all written inquiries related to this RFP are to be submitted in a sealed envelope to the General Services Administration office, located in Bldg. A at 592 Superior Blvd., no later than 12:00 p.m. on April 20, 2007 with the following notation: CONFIDENTIAL — (Residential Solid Waste Collection and Recycling Services in Newport Coast) 2. Scope of Services The City seeks a private solid waste management company (Contractor) to undertake full responsibility for operation of fully automated residential curbside solid waste and recyclable material collection within the Newport Coast area of the City of Newport Beach. The contract term for the exclusive collection franchise is 10 (ten) years. The following are the major scope of services to be provided to the City by the Contractor. • Provide weekly fully automated residential curbside refuse collection, recycling and disposal services to single - family residences in the Newport Coast Area annexed on January 1, 2002 by the City. • Handle all resident inquiries or complaints of service in an expeditious manner. • Provide a bulky item pickup twice per year for each single - family residence with a limit of 4 items per request. • Provide to all City residential customers an automated, wheeled solid waste container in sizes of at least 35 gallon and not more than 96 gallon for refuse materials, per property owner request. • Provide to all City residential customers an automated, wheeled solid waste in sizes of at least 35 gallon and not more than 96 gallon recyclable material container for mixed recyclables, per property owner request. • Provide additional individual automated, wheeled solid waste containers upon property owner request. • Collect solid waste and recyclable materials from residential customers at intervals of not less than once per week. Collection schedule will remain the same as existing schedule unless agreed upon between City and Contractor and will not be adjusted earlier than 60 days after start of agreement. • Collect, recycle and dispose of all residential solid waste materials in accordance with the provisions of the City's commercial non - exclusive solid waste franchise agreement and all applicable City ordinances and State mandates. • Invoice the City for collection services rendered at intervals not to exceed once per month. • Provide curbside collection of Christmas trees on the first two regularly scheduled collection days after Christmas Day. • Provide a monthly report to the City relating to the City's AB 939 compliance requirements 3. Timeline Proposal due to the City Award of Contract April 20, 2007 (By 12:00 p.m.) May 8, 2007 Contractor in Place July 1, 2007 4. Community Background The City of Newport Beach is a scenic beach community located in Orange County with a population of 85,000 residents. The community is home to a 21 square mile harbor area and over 23 miles of ocean beach. The City uses a mix of services to perform residential and commercial solid waste collection throughout the community. Commercial solid waste collection is performed through a non - exclusive system with approximately 25 trash haulers offering fixed and temporary route service to customers. 85% of residential solid waste collection is performed by City staff, with the remainder being managed by private solid waste hauler firms through exclusive franchise agreement. The 7,700 -acre Newport Coast community is located at the eastern edge of the City and contains private residences in six major community associations, including, the Newport Ridge Community Association, Newport Ridge North Community Association, Newport Coast Community Association, Ziani Community Association, Pelican Point Community Association, and Crystal Cove Community Association. In January 1, 2002, the City annexed the Newport Coast community, and in doing so, agreed to assume trash collection services for area residents. Currently there are approximately 3,478 homes (as of February 2007) in the Newport Coast area of the City. Since the area is still in development, it is expected that several hundred homes will be added over the next 5 years. As new homes are built, they will also require fully automated residential trash collection services. Bin service in the Newport Coast area will not be included with this agreement. Current service areas include neighborhoods along Newport Coast Drive from Coast Highway East to the 73 freeway in the eastern section of the City. Attachment 1 is a map of the Newport Coast area showing collection areas highlighted in yellow. The following table shows the number of homes, containers, and tonnage collected in the Newport Coast area. This data is presented for information only and the City of Newport Beach accepts no responsibility for the accuracy of this data. All prospective bidders should take whatever steps they feel are necessary to verify the number of homes, containers, routes, and collection area in preparing their proposals. Collection Area Information (As of Feb 2007) 2004 2005 2006 2007 Number of Homes 2,930 3,223 3,397 3,478 Tonnage Collected Trash 4,468 4,870 4,929 Mixed Recyclables 2,247 2,253 2,310 Total 6,715 7,123 7,239 I. Solid Waste Collection Requirements The following are a summary of the requirements for operation of fully automated refuse collection services in the Newport Coast area of the City of Newport Beach. The Contractor shall be responsible for all labor, equipment, disposal costs, and incidental costs associated with providing this service as an independent contractor. In addition, all collection, recycling and disposal activities of residential solid waste materials will be done in accordance with the provisions of the City's non - exclusive solid waste franchise agreement and all applicable City ordinances and State mandates. I. Containers The Contractor will provide fully automated solid waste and recyclable material containers for residential customers. The automated solid waste container will have suitable handles and wheels, tight - filling covers for holding garbage without leakage or escape of odors; and be constructed of watertight metal or plastic. Containers for municipal solid waste and recyclable materials will be offered to customers in sizes from 35 to 96 gallons. 2. Additional Solid Waste Collection Services The Contractor will provide a bulky item pickup twice per year for each single - family residence with a limit of 4 items per request. Such pickup will be scheduled on a call -in basis with the Contractor's customer service staff. The Contractor will provide Christmas tree collection services during the first two weeks following Christmas day. 3. Waste Collection Days/Times The Contractor will collect solid waste and recyclable materials at intervals not less than once per week. Collection of solid wastes and recyclable materials may not commence earlier than 7:00 a.m. and will stop no later than 6:30 p.m. each collection day. The collection days for Newport Coast are currently done Monday through Friday and will not be changed without City approval. In no event shall the City approve a request to collect on Saturday or Sunday unless authorized by the City's General Services Director. No change to the current schedule will be considered with less than 60 days notice to the City. 4. Waste Disposal Requirements /Recycling Requirements The Contractor will dispose of all solid waste collected and transported at a State certified /licensed landfill, State certified /licensed transfer station, State certified /licensed recycling facility or State certified /licensed materials recovery facility which is lawfully authorized to accept that specific type of solid waste material. The Contractor will be responsible for payment of all fees imposed for disposal. The Contractor will collect the following types of recyclable materials from residential customers: newsprint; cardboard; plastic containers; glass containers; and aluminum containers. The Contractor must also meet the City's recycling requirement of at least 30% in Newport Coast. 5. Fee Increases The Contractor will be entitled to an annual fee increased based on increases in the Consumer Price Index (CPI — all urban consumers for the Los Angeles, Anaheim, and Riverside area) for the 12 months proceeding the prior June index, provided that the CPI increase shall not exceed 6% per 12 month period. 6. Tonnage Reporting The Contractor will be required to submit a monthly report to the City which provides information on the solid waste disposal and recycling operations, within the Newport Coast area of the City of Newport Beach in order to evaluate the Contractor's recycling program. 7. Insurance Without limiting Contractor's indemnification of City, Contractor shall obtain, provide and maintain at its own expense during the term of this Agreement, a policy or policies of liability insurance of the type and amounts described below and in a form satisfactory to City. A. Certificates of Insurance. Contractor shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Insurance certificates must be approved by City's Risk Manager prior to commencement of the service contract. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. B. Signature. A person authorized by the insurer to bind coverage on its behalf shall sign certification of all required policies. C. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact insurance policies in the State of California, with an assigned policyholders' Rating of A (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. D. Coverage Requirements. 1. Workers' Compensation Coverage. Contractor shall maintain statutory Workers' Compensation Insurance and one million dollars ($1,000,000) Employer's Liability Insurance for his or her employees in accordance with the laws of the State of California. Any notice of cancellation or non - renewal of all Workers' Compensation policies must be received by City at least thirty (30) calendar days (10 calendar days written notice of non - payment of premium) prior to such change. The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from work performed by Contractor that relates in any way to this Agreement and provide as such by a waiver of subrogation endorsement. 2. General Liability Coverage. Contractor shall maintain commercial general liability insurance in an amount not less than one million dollars ($1,000,000) per occurrence for bodily injury, personal injury, and property damage, including without limitation, contractual liability. If commercial general liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement, or the general aggregate limit shall be at least twice the required occurrence limit. 3. Automobile Liability Coverage. Contractor shall maintain automobile insurance covering bodily injury and property damage for all activities of the Contract arising out of or in connection with work to be performed under this Agreement, including coverage for any owned, hired, non -owned or rented vehicles, in an amount not less than two million dollars ($2,000,000) combined single limit for each occurrence. E. Endorsements. Each general liability and automobile liability insurance policy shall be endorsed with the following specific language: 1. The City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Contractor. 2. This policy shall be considered primary insurance as respects to City, its elected or appointed officers, officials, employees, agents and volunteers as respects to all claims, losses, or liability arising directly or indirectly from the Contractor's operations or services provided to City. Any insurance maintained by City, including any self - insured retention City may have, shall be considered excess insurance only and not contributory with the insurance provided hereunder. 3. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. 4. The insurer waives all rights of subrogation against City, its elected or appointed officers, officials, employees, agents and volunteers. 5. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its elected or appointed officers, officials, employees, agents or volunteers. 6. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits, by either party except after thirty (30) calendar days (10 calendar days written notice of non- payment of premium) written notice has been received by City. F. Timely Notice of Claims. Contractor shall give City prompt and timely notice of claim(s) made or suit instituted arising out of or resulting from Contractor's performance under this Agreement. G. Additional Insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work. 8. Guarantees The Contractor will file with the City a performance bond in the amount of one hundred percent (100 %) of six months of the contract price payable to the City for all losses and damages the City may sustain as a result of any act or omission of the Contractor, including its employees, agents, and subcontractors arising from the operation or termination of the services under the agreement. 9. Equipment Requirements The Contractor will use alternative fuel vehicles approved by the South Coast Air Quality Management District for fully automated refuse collection services. Vehicles must meet all requirements specified per AQMD Rule 1193. All vehicles shall be properly maintained, kept clean and in good repair, and be uniformly painted. All vehicles must pass the required periodic 'BIT" inspection and provide evidence to the City upon request. Vehicles that do not pass the inspection will not be allowed to operate within City limits until such documentation is provided. II. Proposal Information The following is required information for submitting a proposal to the City of Newport Beach for Residential Solid Waste Collection and Recycling Services in Newport Coast. Three (3) bound or stapled copies of the Proposal should be submitted, accompanied by a cover letter signed by the person with authorization to execute a contract between the Contractor and the City. The letter should summarize the key elements of the proposal. 1. Company Information Please provide information about your firm, including corporate officers, stockholders with greater than a 10% holding, mailing address, contact information, and other useful information about your organization. 2. Related Experience Please provide recent, directly related public agency experience involving automated solid waste and recyclable materials collection services. Include on each listing the name of the agency; description of services provided (automated collection, bin collection); primary agency contact, address and telephone number; dates for the contract; and number of customers served. At least 5 (five) references should be included. For each reference, indicate the reference's name, organization affiliation, title, mailing address, and telephone number. The City of Newport Beach reserves the right to contact any of the organization or individuals listed. 3. Fees /Cost Information Please submit a fee schedule for automated residential collection services. Please note that the prices submitted in the fee schedule will be valid for one year until a CPI -based fee increase will be allowed. Use the attached fee schedule (Attachment 2) or create your own fee schedule. In Section A, please state the monthly base fee that will be charged for regular collection services as described in the scope of services. In Section B, please state the monthly disposal fee that will be charged for all costs incurred with disposing and recycling materials. In Section C, please state the cost of providing an additional 96 gallon container at one single family residence. Please clearly specify any other charges or fees, which would be part of your company policy, i.e., fees for overloaded containers, material restrictions, etc. Use the attached cost schedule (Attachment 3) to submit a total cost for automated collection services. Using the monthly service fees provided in Attachment 2, please calculate a total cost for each cost component for services, including base fees, disposal fees, and additional containers. State the total cost for monthly and annual cost for collection services. 4. Equipment List The City requires that all vehicles used for fully automated collection services must use an alternative fuel approved by the South Coast Air Quality Management District. Provide the make, model, age and type of collection vehicles to be used for automated solid waste and recycling services. 5. Employee Safety Training Describe your organization's training and health and safety programs for your employees. Describe employee response procedure when hazardous wastes are encountered during collection activities. Include any employee manuals, as appropriate. 6. Waste Collection /Recycling Plans Describe the waste collection and recycling plans appropriate for the City of Newport Beach, including collection times, routes, scheduled time of collections and other policies and /or procedures. Fully describe how your company will meet the 30% curbside recycling requirement. 7. Implementation Plan Provide an implementation plan describing the company's plan for facilitating a smooth transition of services and, if applicable, a smooth transition between service providers. The proposal must clearly demonstrate that the company has the ability to implement the services including equipment, personnel, administration, and maintenance requirements. 8. Financial Information Submit a complied audited financial statement for the past three (3) fiscal years. Include balance sheets and profit and loss statements, as appropriate. All financial information submitted will be held confidential to the extent permitted by law. 9. Guarantees Provide a letter from a surety stating your organization's ability to obtain a performance bond in the amount of one hundred percent (100 %) of six months of the contract. III. Evaluation Criteria Proposals submitted to the City of Newport Beach for Residential Solid Waste Collection and Recycling Services in Newport Coast will be evaluated by a committee consisting of City staff and appointed and elected officials. Proposal evaluation will include, but not be limited to: • Responsiveness to the Request for Proposals • Previous Firm Experience with Fully Automated Residential Collection Services • Fee Schedules/Total Cost • Waste Collection Recycling Plan Note that the City of Newport Beach reserves the right to accept or reject any proposal submitted for the residential solid waste collection and recycling services. Fee schedules and costs will not be the sole criteria for award of this agreement. Other criteria will be considered. 0 0 Attachment 1 ! Map of Newport Coast Area, City of Newport Beach 0 Attachment 2 Residential Solid Waste Collection Services Per Residence Rate (Based on Weekly Collection Service) A. Monthly Base Service Rate Per Residence Based on 1 (one), 96 gallon trash container: $ and 1 (one), 96 gallon recycling container B. Monthly Disposal Fee Rate Per Residence Based on 1 (one), single family residence: $_ C. Monthly Rate Additional Container Fee Per Residence Based on 1 (one), 96 gallon trash container. $ Attachment 3 Residential Solid Waste Collection Services Total Cost for Services A. Base Service Charge Monthly Base Service Rate Per Residence: $ Single Family Households: Total Cost, Monthly Base Service Rate: $ B. Disposal Service Charge Monthly Disposal Service Rate Per Residence: $ Single Family Households: Total Cost, Monthly Disposal Service Rate: $ C. Additional Container Service Charge Monthly Additional Container Service Rate Per Residence: $ Additional Containers: Total Cost, Monthly Additional Container Service Rate: $ Total Monthly Cost (A+B+C): $ Total Annual Cost: $ CONTRACTOR AGREEMENT WITH CR &R Incorporated FOR RESIDENTIAL SOLID WASTE COLLECTION AND RECYCLING SERVICES IN NEWPORT COAST THIS AGREEMENT is made and entered into as of this 15t day of July, 2007, by and between the CITY OF NEWPORT BEACH, a Municipal Corporation ( "City"), and CR &R Incorporated a California Corporation whose address is 11292 Western Avenue, Stanton, California, ( "Hauler "), and is made with reference to the following: RECITALS A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. On January 1; 2002, City annexed the area referred to as Newport Coast which is depicted on Exhibit A ( "Newport Coast'). C. City is planning to hire a waste hauler to provide curbside refuse collection services for single - family residential properties in Newport Coast ('Project ") which will be paid for by the City. D. Hauler possesses the skill, experience, ability, background, certification and knowledge to provide the services described in this Agreement. E. The principal member[s] of Hauler for purposes of Project shall be Dean A. Ruffridge, Senior Vice President. F. City has solicited and received a proposal from Hauler, has reviewed the previous experience and evaluated the expertise of Hauler, and desires to retain Hauler to render residential waste hauling services under the terms and conditions set forth in this Agreement. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. TERM The term of this Agreement shall commence on the above written date, and shall terminate on the 30'" day of June, 2017, unless terminated earlier as set forth herein. 2. SERVICES TO BE PERFORMED Hauler shall diligently perform all the services described in the Scope of Services attached hereto as Exhibit B and incorporated herein by reference ( "Contract Services "). The City may elect to delete certain tasks of the Scope of Services at its sole discretion. 3. TIME OF PERFORMANCE Time is of the essence in the performance of services under this Agreement and Hauler shall perform the services in accordance with the schedule included in Exhibit B. The failure by Hauler to strictly adhere to the schedule may result in termination of this Agreement by City. 4. COMPENSATION TO HAULER A. City shall pay Hauler for the services in accordance with the provisions of this Section and the Schedule of Billing Rates attached hereto as Exhibit C and incorporated herein by reference. Annually, upon the anniversary date of the Effective Date, the billing rates set forth on the Schedule of Billing Rates shall be adjusted in proportion to changes in the Consumer Price Index, subject to a six percent (6 %) maximum increase per year. Such adjustment shall be made by multiplying the billing rates then in effect by a fraction, the numerator of which is the value of the Consumer Price Index for the calendar month three (3) months preceding the calendar month for which such adjustment is to be made and the denominator of which is the value of the Consumer Price Index for the same calendar month immediately prior to the Effective Date. For example, if the adjustment is to occur effective July 1, 2008, the index to be used for the numerator is the index for the month of April 2008 and the index to be used for the denominator is the index for the month of April preceding the Effective Date. The "Consumer Price Index" to be used in such calculation is the Consumer Price Index, All Urban Consumers (All Items), for the Los Angeles Anaheim Riverside Metropolitan Area, published by the United States Department of Labor, Bureau of Labor Statistics (1982 84 = 100). If both an official index and one or more unofficial indices are published, the official index shall be used. If said Consumer Price Index is no longer published at the adjustment date, it shall be constructed by conversion tables included in such new index. The parties hereto expressly agree that the maximum yearly increase shall not exceed six percent (6 %). B. Contractor shall submit invoices for Contract Services provided to City on a monthly basis and all invoices submitted to the City shall be accompanied by a monthly report indicating in detail all Contract Services performed. City shall pay invoices within thirty (30) days after receipt by the City. Payment shall be deemed made when deposited in the United States mail, first class postage pre -paid, and addressed to Contractor as specified in Section entitled "Notices ". 5. INCREASE OR DECREASE IN SCOPE OF SERVICES 2 Hauler shall perform refuse collection services as requested by the Contract Administrator and as noted on Exhibit B. The Administrator mey give written authorization for additional services up to one thousand dollars ($1,000) per month. 6. DISPUTES PERTAINING TO PAYMENT FOR WORK Should any dispute arise respecting whether any delay is excuseable, or its duration, the value of any extra work done, or any work omitted, or any extra work which Hauler may be required to do, or respecting any payment to Hauler during the performance of the Agreement, such dispute shall be decided by the Project Administrator with any appeal to the City Manager. The City Manger's decision shall be final. 7. REIMBURSEMENT FOR EXPENSES Except as provided in Exhibit C, Hauler shall not be reimbursed for any disposal fees or other expenses unless authorized in writing by the Project Administrator. 8. LABOR AND PERFORMANCE BONDS Hauler shall furnish, concurrently with the Effective Date of this Agreement, a bond or other instrument satisfactory to the Project Administrator in an amount equal to one hundred percent (100 %) of six months of the contract price /amount to be paid under this Agreement in any one year as security for the faithful performance of this Agreement. 9. DISPOSAL OF SOLID WASTE A. Hauler shall comply with all recycling and diversion requirements imposed by law, ordinance, or regulation on the City and /or Hauler. On a quarterly basis, Hauler shall divert thirty percent (30 %) of all solid waste collected by Hauler from landfills. In no event shall Hauler deposit thirty percent (30 %) or more of the solid waste collected pursuant to this Agreement at any landfill during any calendar quarter. In the event new or additional diversion requirements are imposed by law, ordinance or regulation on City and /or Hauler, the City shall have the right to require Hauler to divert additional solid waste from landfills by providing Hauler with ten (10) days written notice of the new diversion requirements. Upon request of the General Services Director, Hauler shall provide all documents and information requested by the General Services Director to prove that Hauler has complied with this subsection, any applicable law, ordinance, regulation, or condition related to recycling and diversion of solid waste. 3 B. Hauler shall dispose of solid waste collected or transported by Hauler only by taking such solid waste to a State certified /licensed landfill, State certified /licensed transfer station, State certified /licensed recycling facility or State certified /licensed materials recovery facility which is lawfully authorized to accept that specific type of solid waste material. Hauler shall not dispose of solid waste by depositing it on any land, (except a permitted facility) whether public or private, or in any river, stream or other waterway, or in any sanitary sewer or storm drainage system. Nothing in this Agreement shall be deemed or construed as authorizing Hauler to operate a landfill, recycling center, or other solid waste disposal facility. C. All solid waste, in addition to recyclables, collected by Hauler shall become the property of Hauler upon placement by the customer for collection. If Hauler violates the terms in Section 9(A) and Section 9(B) above, Hauler agrees that the City has the future right to direct that solid waste be delivered to a permitted disposal facility designated by City. This exercise of "flow control" by the City shall be made upon at least 30 days prior written notice to Hauler, and written notice shall include the violation(s) prompting the City's action regarding "flow control." Failure to comply with the recycling /diversion requirements and delivery/disposal of materials to a certified /licensed facility shall be a material breach of this agreement. D. Hauler shall implement a load check program that includes, at a minimum, a visual check of all containers to be emptied to protect against inclusion of hazardous waste and shall prepare a written record of all hazardous waste discovered during the process. The records shall comply with all State and Federal Hazardous Waste Regulations, shall be maintained for the length of the term of the Agreement, and shall be made available to the City upon request. 10. REPORTS A. Hauler shall submit to City monthly reports stating the total amount (in tons) of solid waste which Hauler collected in the City of Newport Beach during the reportable month; the total weight (in tons) of solid waste disposed of by Hauler at landfills and transfer stations which Hauler collected in the City of Newport Beach during the reportable month; the total weight and the weight by material category (in tons) of solid waste disposed of by Hauler at recycling and materials recovery facilities during the reportable month which Hauler collected in the City of Newport Beach; the name and location of all solid waste and recycling facilities where City of Newport Beach materials were delivered; such other tonnage or other information as requested by the General Services Director including weigh tickets, recycling records; and any complaints received by the Hauler. Such monthly reports shall be prepared on such form as required by the General Services Director. Each monthly report shall be submitted on or before the 15th day of the month following the end of the month (i.e. report due August 15 for first month after the Effective Date) and submitted to: General Services Director City of Newport Beach 3300 Newport Blvd. Newport Beach, CA 92663 B. If the report required under Subsection A is not filed by the due date specified above, the report shall be deemed delinquent. If the report remains delinquent for more than fifteen (15) days, Hauler shall pay to City a delinquent report charge in the amount of One Hundred Dollars ($100). If the report remains delinquent for more than forty-five (45) days, Hauler shall pay to City a delinquent report charge in the amount of Five Hundred Dollars ($500). C. Hauler shall comply with all recycling and diversion requirements imposed by law, ordinance, or regulation on the City. Monthly reports stating the total amount (in tons) of solid waste which Hauler landfilled, recycled and collected should accurately reflect a 30% diversion rate as required by the City. At the end of each quarter, monthly reports will be evaluated for AB939 compliance. Failure to comply with the recycling and diversion requirements shall be a material breach of this Agreement. 11. VEHICLES AND EQUIPMENT A. Any and all containers provided to customers of Hauler for storage, collection or transportation of solid wastes shall meet the requirements designated by the General Services Director as well as State of California minimum standards for solid waste handling established under Public Resources Code Section 43020 and applicable health requirements. B. All containers and all vehicles used by Hauler in the performance of solid waste handling services shall be marked with Hauler's name and telephone number in letters which are not less than two inches (2 ") high or which are easily read by the general public. 5 C. Equipment. 1. The Hauler will use alternative fuel vehicles approved by the South Coast Air Quality Management District for fully automated refuse collection services. Vehicles must meet all requirements specified per AQMD Rule 1193. Hauler shall, at all times, provide such number of vehicles and such equipment as will be adequate for the collection, transportation and disposal services which it is authorized to provide under this Agreement. All vehicles utilized by Hauler in the performance of this Agreement shall be registered with the California Department of Motor Vehicles. All vehicles must pass the required periodic "BIT" inspection and Hauler shall provide evidence of such to the General Services Department as requested. Upon request by the City, Hauler shall provide records from the most recent California Highway Patrol biennial inspection of the terminal(s) responsible for the maintenance and repair of equipment used in the City. All vehicles shall be properly maintained, kept clean and in good repair, and shall be uniformly painted. All solid waste containers used in the performance of this Agreement shall be kept clean and in good repair to the satisfaction of the General Services Director. All vehicles and equipment used by Hauler in the performance of this Agreement may be subject to inspection by the City upon twenty -four (24) hours notice by the General Services Director. All drivers employed by Hauler and operating equipment in the City shall be properly licensed for the class of vehicle they drive, enrolled in the Department of Motor Vehicles Employee Pull Notice (EPN) program, and abide by all State and federal regulations for driver hours and alcohol and controlled substances testing. 2. Each vehicle shall be so constructed and used in a manner so that no rubbish, garbage, debris, oil, grease or other material will blow, fall, or leak out of the vehicle. All solid waste shall be transported by means of vehicles which are covered in such a manner as to securely contain all solid waste and to prevent such solid waste from projecting, blowing, falling or leaking out of the vehicles. Any solid waste dropped or spilled in collection, transfer or transportation shall be immediately cleaned up by Hauler. A broom and a shovel shall be carried at all times on each vehicle for this purpose. In addition, each collection vehicle shall be equipped with trash bags, masking tape and notice of non - collection tags for the purpose of separating hazardous waste for return to the generator. A communications device such as a two -way radio or a cellular telephone shall also be maintained on each vehicle at all times. 3. Hauler shall not store any vehicle or equipment on any public street, public right -of -way or other public property in the City of Newport Beach without obtaining a Temporary Street Closure Permit from the Public Works Department and prior written consent of the General Services Director. R 4. Should the General Services Director at any time give written notification to Hauler that any vehicle does not comply with the standards hereunder, the vehicle shall be promptly removed from service by Hauler and not used again until inspected and authorized in writing by the General Services Director. 12. ADMINISTRATION This Agreement will be administered by the General Services Department. The General Services Director, or his designee shall be the Project Administrator and shall have the authority to act for City under this Agreement. The Project Administrator or his /her authorized representative shall represent City in all matters pertaining to the services to be rendered pursuant to this Agreement. 13. CITY'S RESPONSIBILITIES In order to assist Hauler in the execution of its responsibilities under this Agreement, City agrees to, where applicable Provide access to, and upon request of Hauler, one copy of all existing relevant information on file at City. City will provide all such materials in a timely manner so as not to cause delays in Hauler's work schedule. 14. STANDARD OF CARE, WORKMANSHIP, SUPERVISION A. The Hauler shall provide a work force sufficient to perform the Contract Services and all members of the work force shall be hired in compliance with State and Federal law. B. All Contract Services shall be performed by competent and experienced employees. Hauler represents that it possesses the professional and technical personnel required to perform the services required by this Agreement, and that it will perform all services in a manner commensurate with community professional standards. All services shall be performed by qualified and experienced personnel who are not employed by City, nor have any contractual relationship with City. Hauler hereby certifies that all work performed under this Agreement will conform to the requirements of this Agreement and all applicable federal, state and local laws and the professional standard of care. C. The work force shall include thoroughly skilled, experienced, and competent supervisor who shall be responsible for adherence to the terms of this Agreement by directly overseeing the Contract Services operations. All supervisory personnel must be able to communicate effectively in English (both orally and in writing). An order given to supervisory personnel shall be deemed delivered to the Hauler. Hauler shall provide City with a designated supervisors name(s) and shall notify the City of the name of any successor within ten (10) days of change in supervision. 7 D. All Hauler personnel working in Newport Coast shall be neat in appearance and in uniform. E. Hauler represents and warrants to City that it has, shall obtain, and shall keep in full force in effect during the term hereof, at its sole cost and expense, all licenses, permits, qualifications, insurance and approvals of whatsoever nature that is legally required of Hauler to practice its profession. Hauler shall maintain a City of Newport Beach business license during the term of this Agreement. F. Whenever Hauler has knowledge that any actual or potential labor dispute is delaying or threatens to delay the timely performance of this Agreement, Hauler shall immediately give notice to the City and any and all relevant information. In the event of a labor dispute which delays or impacts the performance of Contract Services, the City reserves the right to use its own forces or to contract with other haulers to perform the Contract Services. 15. INDEPENDENT CONTRACTOR It is understood that City retains Hauler on an independent contractor basis and Hauler is not an agent or employee of City. The manner and means of conducting the work are under the control of Hauler, except to the extent they are limited by statute, rule or regulation and the expressed terms of this Agreement. Nothing in this Agreement shall be deemed to constitute approval for Hauler or any of Hauler's employees or agents, to be the agents or employees of City. Hauler shall have the responsibility for and control over the means of performing the work, provided that Hauler is in compliance with the terms of this Agreement. Anything in this Agreement that may appear to give City the right to direct Hauler as to the details of the performance or to exercise a measure of control over Hauler shall mean only that Hauler shall follow the desires of City with respect to the results of the services. 16. COOPERATION Hauler agrees to work closely and cooperate fully with City's designated Project Administrator and any other agencies that may have jurisdiction or interest in the work to be performed. City agrees to cooperate with the Hauler on the Project. 17. CITY POLICY Hauler shall discuss and review all matters relating to policy and Project direction with City's Project Administrator in advance of all critical decision points in order to ensure the Project proceeds in a manner consistent with City goals and policies. U 18. INSURANCE REQUIREMENTS Without limiting Hauler's indemnification of City, Hauler shall obtain, provide and maintain at its own expense during the term of this Agreement, a policy or policies of liability insurance of the type and amounts described below and in a form satisfactory to City. A. Certificates of Insurance. Hauler shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Insurance certificates must be approved by City's Risk Manager prior to commencement of the Agreement. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. B. Signature. A person authorized by the insurer to bind coverage on its behalf shall sign certification of all required policies. C. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. D. Coverage Requirements 1. Workers' Compensation Coverage. Hauler shall maintain Workers' Compensation Insurance and one million dollars ($1,000,000) Employer's Liability Insurance for his or her employees in accordance with the laws of the State of California. Any notice of cancellation or non - renewal of all Workers' Compensation policies must be received by City at least thirty (30) calendar days (10 calendar days written notice of non- payment of premium) prior to such change. The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from work performed by Hauler that relates in any way to this Agreement. 2. General Liability Coverage. Hauler shall maintain commercial general liability insurance in an amount not less than one million dollars ($1,000,000) per occurrence for bodily injury, personal injury, and property damage, including without limitation, contractual liability. If commercial general liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement, or the general aggregate limit shall be at least twice the required occurrence limit. r✓ 3. Automobile Liability Coverage. Hauler shall maintain automobile insurance covering bodily injury and property damage for all activities of the Hauler arising out of or in connection with work to be performed under this Agreement, including coverage for any owned, hired, non -owned or rented vehicles, in an amount not less than two million dollars ($2,000,000) combined single limit for each occurrence. E. Endorsements. Each general liability and automobile liability insurance policy shall be endorsed with the following specific language: 1. The City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Hauler. 2. This policy shall be considered primary insurance as respects to City, its elected or appointed officers, officials, employees, agents and volunteers as respects to all claims, losses, or liability arising directly or indirectly from the Hauler's operations or services provided to City. Any insurance maintained by City, including any self- insured retention City may have, shall be considered excess insurance only and not contributory with the insurance provided hereunder. 3. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. 4. The insurer waives all rights of subrogation against City, its elected or appointed officers, officials, employees, agents and volunteers. 5. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its elected or appointed officers, officials, employees, agents or volunteers. 6. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits, by either party except after thirty (30) calendar days (10 calendar days written notice of non - payment of premium) written notice has been received by City. F. Timely Notice of Claims. Hauler shall give City prompt and timely notice of claim(s) made or suit instituted arising out of or resulting from Hauler's performance under this Agreement. G. Additional Insurance. Hauler shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work. 10 19. RESPONSIBILITY FOR DAMAGES AND INJURYANDEMNIFICATION A. Hauler Responsibility. Hauler shall be responsible for any damages caused as a result of Haulers acts or omissions including, but not limited to injuries to or death of any person or damage to public and /or private property and damages public improvements as a result of Haulers placement and retrieval of the solid waste containers. B. General Indemnification. Hauler shall indemnify, hold harmless, and defend City, and each of its past, present and future elected officials, officers, employees, agents, consultants, volunteers, affiliates, assignees, representatives, attorneys, subsidiaries, and affiliated entities and their respective successors, heirs and assigns (collectively, "Indemnified Parties ") for, from and against any costs, expenses, damages, and losses, including actual attorneys fees ( "Losses ") of any kind or character to any person or property arising directly or indirectly from or caused by any of the following: (i) any act or omission of Hauler or its respective officers, directors, shareholder members, partners, employees, agents, contractors, subcontractors, suppliers, representatives and affiliates ( "Hauler Representatives "); (ii) Hauler's or Hauler Representative's activities; (iii) any accident or casualty within or arising out of the services /work performed under the Agreement; (iv) any violation or alleged violation of any law, ordinance or statute now or hereafter enacted arising out of servicestwork performed pursuant to the Agreement; (v) the negligence or willful misconduct of Hauler or any of Hauler representatives in the performance of the services /work under the Agreement; and (vi) any breach of the Agreement. Hauler shall not be required to indemnify, hold harmless and defend the Indemnified Parties from the sole negligence, active negligence or willful misconduct of the Indemnified Parties. Nothing in this indemnity shall be construed as authorizing any award of attorney's fees in any action on or to enforce the terms of this Agreement. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by the Hauler. C. Hazardous Substances Indemnification. Hauler shall indemnify the Indemnified Parties from and against all claims, actual damages including, but not limited to, special and consequential damages, natural resource damage, punitive damages, injuries, costs, response, remediation, and removal costs, losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines, charges, penalties and expenses attorneys' and expert witness fees and costs incurred in connection with defending against any of the foregoing or in enforcing this indemnity of any kind whatsoever paid, incurred or suffered by, or asserted against, the Indemnified Parties or Hauler arising directly or indirectly from or caused by any of the following: (i) the violation of any Environmental Laws or the failure to clean up and mitigate the consequences of the spill or release of any Hazardous Substance; and (ii) W Hauler's activities under this Agreement concerning any Hazardous Substance at any place where Hauler stores or disposes of solid or hazardous waste pursuant to this Agreement, or preceding Agreements between City and Hauler. The foregoing indemnity is intended to operate as an agreement pursuant to the Comprehensive Environmental Response, Compensation and Liability Act 42. U.S.C. Section 9607(e) and any amendments thereto; California Health and Safety Code Section 25364, to insure, protect, hold harmless, and indemnify City from liability. As used herein, the term "Environmental Laws" shall mean "any and all present and future federal, state or local laws (whether common law, statute, rule, regulation or otherwise), permits, orders and any other requirements of Governmental Authorities relating to the environment or any "Hazardous Substance" or "Hazardous Substance Activity" (as defined herein) (including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. §§ 9601 et seq.) as amended from time to time and the applicable provisions of the California Health and Safety Code and California Water Code). As used herein, the term "Hazardous Substance" shall mean "any (a) chemical, compound, material, mixture or substance that is now or hereinafter defined or listed in, or otherwise classified pursuant to any Environmental Law as a "hazardous substance ", "hazardous material," "hazardous waste," "extremely hazardous waste," "infectious waste," "toxic waste," "toxic pollutant," or any other formulation intended to define, list or classify substances by reason of deleterious properties or affect and (b) petroleum, petroleum by- products, natural gas, natural gas liquids, liquefied natural gas, synthetic gas usable for fuel (or mixtures of natural gas in such synthetic gas), ash, municipal solid waste, steam, drilling fluids, produced waters and other wastes associated with the exploration, development and production of crude oil, natural gas or geothermal resources." D. AB939 Indemnification. Hauler agrees to meet all requirements of City's Source Reduction and Recycling Element as to the portion of the solid waste stream handled by Hauler. Hauler agrees to protect, defend, indemnify, and hold City harmless against all fines or penalties imposed by the California Integrated Waste Management Board, or other entity, arising from the failure of Hauler to meet the Integrated Waste Management Act diversion requirements with respect to the portion of the solid waste stream collected by Hauler. E. Notice. City agrees to give notice to Hauler when the City receives a claim for damages or other liability for, which Hauler has provided indemnification under this Section. 12 20. 21. 22. 23. 24. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS Except as specifically authorized under this Agreement, the services to be provided under this Agreement shall not be assigned, transferred contracted or subcontracted out without the prior written approval of City. Any of the following shall be construed as an assignment: The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Hauler, or of the interest of any general partner or joint venturer or syndicate member or cotenant if Hauler is a partnership or joint- venture or syndicate or cotenancy, which shall result in changing the control of Hauler. Control means fifty percent (50 %) or more of the voting power, or twenty -five percent (25 %) or more of the assets of the corporation, partnership or joint-venture. SUBCONTRACTING The parties recognize that a substantial inducement to City for entering into this Agreement is the professional reputation, experience and competence of Hauler. Assignments of any or all rights, duties or obligations of the Hauler under this Agreement will be permitted only with the express written consent of City. Hauler shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of City. CONFIDENTIALITY All documents, including drafts, preliminary drawings or plans, notes and communications that result from the services in this Agreement, shall be kept confidential unless City authorizes in writing the release of information. INTELLECTUAL PROPERTY INDEMNITY The Hauler shall defend and indemnify City, its agents, officers, representatives and employees against any and all liability, including costs, for infringement of any United States' letters patent, trademark, or copyright infringement. RECORDS A. Hauler shall maintain a complete and accurate books and other business records with respect to the costs incurred under this Agreement including any labor and disposal costs incurred under this Agreement, any Contract Services performed under this Agreement, and any expenditures and /or disbursements charged to City, for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Hauler under this Agreement. All such records shall be clearly identifiable. All Hauler's books and other business records, or such part as may be used in performance of this Agreement, shall be subject to inspection and audit by authorized City representative during regular business hours. Hauler shall allow inspection of all work, data, records, proceedings and activities related 13 to the Agreement for a period of three (3) years from the date of final payment to Hauler under this Agreement. B. No report, information or other data given to or prepared or assembled by hauler pursuant to this Agreement may be made available to any individual or organization without prior approval by City. 25. WITHHOLDINGS City may withhold payment to Hauler of any disputed sums until satisfaction of the dispute with respect to such payment. Such withholding shall not be deemed to constitute a failure to pay according to the terms of this Agreement. Hauler shall not discontinue work as a result of such withholding. Hauler shall have an immediate right to appeal to the City Manager or his /her designee with respect to such disputed sums. Hauler shall be entitled to receive interest on any withheld sums at the rate of return that City earned on its investments during the time period, from the date of withholding of any amounts found to have been improperly withheld. 26. CITY'S RIGHT TO EMPLOY OTHER HAULERS City reserves the right to employ other Haulers in connection with the Project. 27. CONFLICTS OF INTEREST The Hauler or its. employees may be subject to the provisions of the California Political Reform Act of 1974 (the "Act'), which (1) requires such persons to disclose any financial interest that may foreseeably be materially affected by the work performed under this Agreement, and (2) prohibits such persons from making, or participating in making, decisions that will foreseeably financially affect such interest. If subject to the Act, Hauler shall conform to all requirements of the Act. Failure to do so constitutes a material breach and is grounds for immediate termination of this Agreement by City. Hauler shall indemnify and hold harmless City for any and all claims for damages resulting from Hauler's violation of this Section. 28. NOTICES All notices, demands, requests or approvals to be given under the terms of this Agreement shall be given in writing, and conclusively shall be deemed served when delivered personally, or on the third business day after the deposit thereof in the United States mail, postage prepaid, first -class mail, addressed as hereinafter provided. All notices, demands, requests or approvals from Hauler to City shall be addressed to City at: 14 Attn: Mark Harmon General Services Department City of Newport Beach 3300 Newport Boulevard Newport Beach, CA, 92663 Phone: 949 - 644 -3055 Fax: 949 - 650 -0747 All notices, demands, requests or approvals from CITY to Hauler shall be addressed to Hauler at: Attention: Dean A. Ruffridge CR &R Incorporated 11292 Western Avenue Stanton, California 90680 Phone: 714 - 826 -9049 Fax: 714 - 890 -6347 29. TERMINATION In the event that either party fails or refuses to perform any of the provisions of this Agreement at the time and in the manner required, that party shall be deemed in default in the performance of this Agreement. If such default is not cured within a period of two (2) calendar days, or, if more than two (2) calendar days are reasonably required to cure the default and the defaulting party fails to give adequate assurance of due performance within two (2) calendar days after receipt of written notice of default, specifying the nature of such default and the steps necessary to cure such default, and thereafter diligently take steps to cure the default, the non - defaulting party may terminate the Agreement forthwith by giving to the defaulting party written notice thereof. Notwithstanding the above provisions, City shall have the right, at its sole discretion and without cause, of terminating this Agreement at any time by giving seven (7) calendar days prior written notice to Hauler. In the event of termination under this Section, City shall pay Hauler for services satisfactorily performed and costs incurred up to the effective date of termination for which Hauler has not been previously paid. On the effective date of termination, Hauler shall deliver to City all reports, documents and other information developed or accumulated in the performance of this Agreement. 30. COMPLIANCE WITH ALL LAWS Hauler shall at its own cost and expense comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted. Hauler shall conform to all applicable provisions of State and Federal law including, applicable provisions of the California Labor Code and the Federal Fair Labor Standards Act. In addition, all work prepared by Hauler shall conform to applicable City, 15 county, state and federal laws, rules, regulations and permit requirements and be subject to approval of the Project Administrator and City. 31. WAIVER A waiver by either party of any breach, contained herein shall not be deemed to b e of the same or any other term, covenant o r of the same or a different character. 32. INTEGRATED CONTRACT of any term, covenant or condition a waiver of any subsequent breach condition contained herein, whether This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein. 33. CONFLICTS OR INCONSISTENCIES In the event there are any conflicts or inconsistencies between this Agreement and the Scope of Services or any other attachments attached hereto, the terms of this Agreement shall govern. 34. INTERPRETATION The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. 35. AMENDMENTS This Agreement may be modified or amended only by a written document executed by both Hauler and City and approved as to form by the City Attorney. 36. SEVERABILITY If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 37. CONTROLLING LAW AND VENUE The laws of the State of California shall govern this Agreement and all matters relating to it and any action brought relating to this Agreement shall be adjudicated in a court of competent jurisdiction in the County of Orange. 16 38. EQUAL OPPORTUNITY EMPLOYMENT Hauler represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the day and year first written above. APPROVED AS TO FORM: — A C _ yG_' City Attorney P °r for the City of Newport Beach ATTEST: 0 LaVonne Harkless, City Clerk CITY OF NEWPORT BEACH, A Municipal Corporation M Mayor for the City of Newport Beach HAULER: By: (Corporate Officer) Title: Print Name: By: (Financial Officer) Title: Print Name: Attachments: Exhibit A – Newport Coast Map Exhibit B - Scope of Services Exhibit C – Schedule of Billing Rates F:l usersl caflshared \ContractTemplatesPublishedon I ntraneOFORM PSA.doc 17 PACIFIC M..hQOm Coast _Collection Areas � y a t � � r I k•V ,Y�. b; �. i i � I k � , r Y" ��[�" -✓ref ��� rcha x�d P'Y�F ` k C r 4 ��. �'` ( � ' OCEAN, STATE PARR 0 W�f= w m x c rt id Exhibit B Refuse Contract Services 1.) Hauler shall provide weekly residential curbside refuse collection, recycling and disposal services to single - family residences in the Newport Coast Area annexed on January 1, 2002 by the City. 2.) The Hauler will handle all resident inquiries or complaints of service in an expeditious manner. 3.) The Hauler shall provide a bulky item pickup twice per year for each single - family residence with a limit of 4 items per request. 4.) The weekly basic service will consist of providing two individual automated style containers, one for refuse and one for recyclable materials. The minimum size of the container shall be 35 gallons with larger containers up to 96 gallons available at the discretion of the property owner. 5.) The Hauler will collect solid waste and recyclable materials at intervals not less than once per week. Collection of solid wastes and recyclable materials may not commence earlier than 7:00 a.m. and will stop no later than 6:30 p.m. each collection day. The collection days for Newport Coast are currently done Monday through Friday and will not be changed without City approval. In no event shall the City approve a request to collect on Saturday or Sunday unless authorized by the City's General Services Director. No change to the current schedule will be considered with less than 60 days notice to the City. 6.) Additional individual automated -style refuse collection containers will be provided upon request of the resident. The cost for the extra service provided in Exhibit C will be borne by the City, up to the maximum of 2 additional containers per single family residence. 7.) Hauler shall provide curbside collection of Christmas trees on the first two regularly scheduled collection days after Christmas Day. 8.) The Hauler shall keep data on the origin and tonnage of solid waste collected in the Newport Coast area. The Hauler shall provide to the city, on a monthly basis, the following information in a format supplied by or approved by the General Services Director: 1. The tonnage of Solid Waste collected by the gross number of tons collected each month. 2. The origin and tonnage of solid waste that is actually delivered to the designated landfill each month. 3. The weight of recyclable materials collected in the Newport Coast area and delivered for recycling. 4. The facility to which each type of recyclable material or recovered material is delivered by the Hauler. 5. Total weight, by type of material, of glass, aluminum, plastic, paper, cardboard, concrete, dirt, asphalt, green waste, lumber and white goods collected monthly. 6. Any other information reasonably requested by the City to meet State or Federal regulatory reporting requirements of the City's Source Reduction and Recycling Element (SRRE), as it may be amended from time to time. Exhibit C Refuse Billina Rates 1.) Compensation for the Contract Services shall be $13.57 per residence. The monthly rate of $13.57 per residence is composed of a base service fee component of $10.90 and a disposal fee component of $2.67. 2.) In addition to the monthly rate of $13.57 per residence, City will pay for extra automated containers for refuse or recycling collection as requested by individual residents in the amount not to exceed $3.00 per resident request. 3.) City franchise fees pursuant to NBMC Section 12.63.070 shall be waived, but only for the Contract Services provided in this agreement. 4.) The City will be billed in arrears by the Contractor on a monthly basis. 5.) The monthly compensation per residence shall be increased on July 1, 2008, and every 12 months thereafter to reflect any increase in the Consumer Price Index as stated in Section 4 of the agreement. Washington, Lillian Subject: FW: OCTax: Waste Disposal Contract "RECEIVsQ FiER AGE (A PRINTEV' 5 - - - -- Original Message---- - From: reed.royalty @cox.net [mailto:reed.royalty @cox.net] Sent: Tuesday, May 08, 2007 4:35 PM To: Harkless, LaVonne Subject: Fwd: OCTax: Waste Disposal Contract Ms. Harkless: For your information. Please distribute as you see fit. Thank you. -- Reed Royalty • Date: Tue, 8 May 2007 16:20:34 -0700 • From: <reed.royalty @cox.net> • To: hbludau @city.newport - beach.ca.us • Subject: OCTax: Waste Disposal Contract > Mr. Bludau, > I understand that the City of Newport Beach is contemplating a new waste disposal contract. > The Orange County Taxpayers Association (OCTax) has no interest in your decision, has no opinion on the qualifications of the bidders, and no knowledge of who all the bidders may be. > OCTax does have a generic interest in minimizing taxes and fees for citiens in Orange County and its cities. We favor private solutions to public problems, so we are glad that Newport Beach will use a private vendor for waste collection and disposal. > We believe in competitive bidding, with clear and reasonable conditions of service and required qualifications of vendors. To create and preserve a competitive environment, we think there should be a strong presumption in favor of the lowest bidder unless there are unique circumstances and qualifications that mandate selection of a higher bidder. > Please pass along OCTax's thoughts to your Honorable Mayor and Councilmembers. > Thank you. > Reed Royalty, President, OCTax 1 5110 -7 � Newport Coast Refuse Collection Services City Council Meeting May s, 2007 ��WI� � T V n��ll Yy� • 11 Background *Newport Coast Annexation- January 1, 2002 • *Existing Service Provider- Waste Management — Service Levels 04,000 Residences •Over 7,000 Tons of Materials Collected Annually *Fall 2006- City Council Direction to Solicit Bids 0 p$W fY T O A � +<��uaPa Reauest for Proaosals Maintain Service Levels - Weekly Collection - Additional Services (Bulk Pickup, Christmas Trees) -Two 96- gallon Automated Containers (Trash, Recycling) -Fully Automated Services Process - Mailed: April 1, 2007 - Deadline: April 20, 2007 at 12 pm -Sent to City's 26 Franchised Haulers ppw pt, �G P y F � J C�cir��M�T • C F Is Receiv -CR &R, Incorporated - Rainbow Disposal -Ware Disposal -Waste Management of OC -Waste Resources /Robert's Waste Evaluation Criteria - Experience Providing Fully Automated Collection - Equipment Requirements -Fee Schedule /Total Cost - Recycling Requirement /Plan - Implementation Plan Per Section 3 of the Request for Proposals sent to bidders, "fee schedules and costs are not the sole criteria for award of this agreement. ff U MD A CR &R, Inc Waste Management of OC Rainbow Disposal Ware Disposal Waste Resources/ Roberts Waste roved AQMD Vehicles In Service 70 48 10 1 0 i Dme Type of Vehicle LNG Fully Automated CNG Fully Automated CNG Fully Automated Diesel /CNG Fully and Semi Automated Diesel /Alternative Fueled Collection Type Unknown Per Section 2 of the Request for Proposals sent to bidders, "the City requires that all vehicles used for fully automated collection services a must use an alternative fuel approved by the South Coast Air Quality Management District. " QYIM� • 0 T } � y J C^�cir��M�T ience With Oth Waste Management of OC CR &R, Inc Rainbow Disposal Ware Disposal Waste Resources/ Roberts Waste Years of Experience 20 17 1 2 0 Number of Automated Accounts 200,000 250,000 100,000 2,000 0 Cities Served Irvine, Laguna Beach, Lake Forest, Orange, Santa Ana, Mission Viejo Costa Mesa, Dana Point, San Clemente, Laguna Niguel Sunset Beach, Huntington Beach, Fountain Valley Laguna Woods N/A Includes driver experience using automated equipment and servicing automated collection routes for other cities. • 0 W1r, 11 44 o n A Information Waste Hauler Proposed Cost Current Proposed Cost Current Number Estimated Per Residence Number of Per Add'I Containers of Add'I Containers Total Cost Residences Ware Disposal Base:$ 9.30 4,000 $7.96 441 $616,200 Disposal: 2.66 Total: $11.96 CR &R Base: $10.90 4,000 $3.00 441 $667,236 Disposal: 2.67 Total: $13.57 Rainbow Base: $12.45 4,000 $3.75 441 $737,448 Disposal Disposal: 2.50 Total: $14.95 Waste Base: $11.72 4,000 $3.42 441 $739,536 Management Disposal: $ 3.31 Total: $15.03 Waste Base: $15.43 4,000 $18.29 441 $974,712 Resources/ Disposal: $ 2.86 Robert's Waste Total: $18.29 n'd��� .� a 3 Information- Continued Current Annual Cost: $739,536 Waste Hauler Estimated Savings/ .. I Cost Increase Current Cost Ware Disposal $616,200 $123,336 CR&R $667,236 $72,300 Rainbow $737,448 $2,088 Disposal Waste $739,536 $0 Management Waste $974,712 +$235,176 Resources/ Robert's Waste 0 0 ommendation CR &R, Inc —Best Combination of Experience, Service, Equipment, and Cost —Staff recommends that the City Council authorize a 10 -year agreement with CR &R. Inc. to provide fully automated residential refuse collection services in Newport Coast. T 4 } Y � A J ����IU0.�S E J DISPOSAL CO.. INC. 0 Ww- *z A-" E DISPOSAL CO., INC. sf" stun oaldeuK sk� t 1968 !� 414- 834.0234 949 -g33 -9901 re ._ (A SS393 � o I 0 0 YEAR WDCO CR -R DIFFERENCE 4% CPI WDCO 4% CIPI -CR -R DIFFERENCE 2007 $616,200.00 $667,236.00 $ 51,036.00 2008 $ 640,848.00 $ 693,925.00 $ 53,085.00 2009 $ 666,482.00 $ 721,682.00 $ 55,200.00 2010 $ 693,141.00 $ 750,549.00 $ 57,408.00 2011 $ 720,867.00 $ 780,571.00 $ 59,884.00 2012 $ 749,702.00 $ 811,794.00 $ 62,092.00 2013 $ 779,690.00 $ 844,266.00 $ 64,576.00 2014 $ 810,877.00 $ 878,036.00 $ 67,159.00 2015 $ 843,312.00 $ 913,158.00 $ 69,846.00 2016 $ 877,045.00 $ 949,684.00 $ 72,639.00 2017 $ 912,126.00 $ 987,672.00 $ 75546. TOTAL $ 8,310,290.00 1 $ 8,998,573.00 688,283.00 ' Growth: CR &R : 1200 units at 13.57/mo = $195,300/yr Ware: 1200 units at 11.96/mo = $172,2001yr Difference each year results in an annual savings of $23,1M-------1 Difference over 10 years results in an additional savings o($231,000 (this does not take into account additional savings when CP i crease is factored in) 1 1 i ' Ware Disposal Inc. Response to the Request for Proposal City of Newport Beach 20 April 2007 8r flon Q With this section, Ware Disposal provides the following information in ' fulfillment of the requirements of Section 4 as contained in the RFP document We rote that all collection vehicles to be used in the provision of service in Newport Coast will be SCAQMD compliant. Exhibit 4 -A to ' this section from TEC of California Inc. provides the specifications for all to-be- acquired vehicles that will be utilized to provide service to Newport Coast residents. ' Also, Ware Disposal provides the details of the automated carts it intends on utilizing in the provision of service to Newport Coast residents. Exhibit 4 -B to this section from Rehrig- Pacific Corporation states their specifications, their ' ability of meeting the i July 20o7 service commencement date and a brief background of their corporate history. L P I Please be advised that all refuse and recycling collection vehicles and automated collection carts will be brand new (2oo7) for Newport Coast residential collection services. Printed on 30% post consumer recycled paper Mt I 1 1 1 1 1 1 1 1 1 1 0 0 9 k 1� I 0 r Ware Disposal Inc. Response to the Request for Proposal City of Newport Beach 20 April 2007 conducted using a non - compaction vehicle designed to maintain the integrity of collected materials for sorting and recycling at Madison Materials. The facility is permitted to accept up to 25 tons of electronic and universal wastes per day, so such hazardous wastes shall be advertised as acceptable for collection as part of the bulky item collection program (PARIS code 902o -HH -CSC). Ware Disposal shall obtain a form letter of authorization from the City designating it as the agent of the City for collection of covered electronic devices thereby allowing it to collect from residences without resorting to obtaining names and addresses of each contributing resident. Ware Disposal and Madison Materials are also authorized collectors of E- and ](1-wastes as permitted by the State of California. All of Ware Disposal's residential drivers will keep a route sheet in their trucks at all times so they can assist the Company in tracking how many times a resident has utilized the on -call bulky item collection. The drivers will then give this information to our customer service center, which will log it into the Company's computer database to maintain an accurate record in the event the City desires a report relating to this activity. Of course, Ware Disposal will handle all resident enquiries or complaints of service in an expeditious manner. Residents will be able to contact Ware Disposal via a 949 area code telephone number, so there will be no charge to their telephone invoice. At Christmas holiday time, Ware Disposal will offer a Christmas tree recycling program to all Newport Coast residents. The program will be offered the two (2) weeks after the Christmas holiday. For example, during calendar year 2007, collection will commence 26 December 2007 and run through the week of 7 January 2007. Ware Disposal will invoice the City for collection services rendered at intervals not to exceed once per month. Ware Disposal will provide a monthly report to the City relating to the City's AS 939 Compliance and will meet and exceed the recycling requirement of 30%, as stated in Section 6 of the RFP document. We strongly believe by expanding the list of recyclable materials to be collected will ensure the City of Newport Beach that Ware Disposal can meet and exceed the 3o% recycling requirement. We also believe that, by offering residents a second recycling cart at no charge, is much preferred in terms of waste reduedon and the ability of realizing additional recycling credit available to the City of Newport Beach. This program should be able to realize an additional fifteen (15) tons per week, or seven hundred eighty (780) per annum. With the data provided in the RFP document, Ware Disposal believes it will be able to accomplish the following for the City of Newport Beach: Printed on 30% post consumer recycled paper 6-3 1 0 0 1 1 I 1 1 1 1 1 1 i u F1 i FJ 1 Ware Disposal Inc. City of Newport Beach Response to Me Request for Proposal 20 April 2007 MEASUREMENT UNIT Current Data DATA REFERENCE POINT Average Number of Homes 131§4 Total Refim Tons Collected Aver 6 Total Recyclable Tons Collected Average . 2270 Total Tonnaze Average Per Annum 7o26 Diversion Percentage O. 1 UNIT DATA REFERENCE POINT Averaze Number of Homes 18 Total Refuse Tons Collected Ave Total Recyclable Tons Collected Avers e 3050 Total Tonne a Aveirage Per Annum 7026 Diversion Percents 10-4341 As a result of our proposal, Ware Disposal believes it will be able to increase the Newport Coast residential recycling percentage from an average of 32% to 43% over the first year of franchise administration, or 34% increase over the current diversion level. Please keep in mind these are our estimates and will work diligently to ensure we meet these goals should we be selected to become the City's contractor in Newport Coast. At the conclusion of this section, please find examples of public education materials supplied to Ware Disposal clients over the past few years. These examples are Exhibit 6-B to this section. Lastly, below, please find Madison Materials policy on tonnage allocation. Every load brought to Madison Materials from a jurisdiction is recorded by the jurisdiction of origin at the scale house. Incoming loads from the City of Newport Beach will be deposited on the tipping floor. These loads are not mixed with any of the "B" loads from sources like restaurants and grocery stores, as the types of materials contained in the "B" loads are prohibited by the facility's permit. The City of Newport Beach's tonnage is mixed with recyclable rich tonnage from other jurisdictions because it is infeasible to separate and process each jurisdiction's loads separately. Madison Materials has employed a process for allocating tonnage to each city that receives diversion credit. This allocation system is quite similar to that found at other Orange County transfer stations. It has been formulated to be as translucent as it can be as it relates to mixed material recovery facility processing. This type of methodology has been reviewed by the Orange County Integrated Waste Management Board (OCIWMD) and is consistent with existing policies regarding said issue of the California Integrated Waste Management Board (CIWMB). Printed on 30% post consumer recycled paper f � �. ,fir r� u 4° r BpSW MAl ing ash flow fog I • _-4E ISO ON r ow t1hN a Vl� • eii amom I ic 1 BASF -- 1, floo d Em 0 me Roil I � �1.SI � I f • -; I L. 77 r 4 i 1� •i+ rte. -1. � Z,^ - r