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211216 0935 FW_ Los Alamitos New Trash ContractFrom:Peter Grant To:Peter Grant Cc:Douglas Dancs Subject:FW: Los Alamitos New Trash Contract Date:Thursday, December 16, 2021 9:34:38 AM Attachments:05A-Integrated Waste Management Services Franchise Agreement.pdf Mayor and Council (via bcc), Another complaint about the refuse franchise from Mr. Pardon follows. Pete From: George Pardon <georgepardon@gmail.com> Sent: Wednesday, December 15, 2021 18:59 To: Peter Grant <pgrant@cypressca.org>; Douglas Dancs <DDancs@cypressca.org> Subject: Los Alamitos New Trash Contract Peter and Doug, What am I missing here? I will be sending this to the City Council on Saturday but I wanted to give you a heads up. With their new contract, Los Alamitos residents will be paying 16% less than Cypress residents are currently paying and 54% less the newly proposed rates. With the new Los Alamitos deal, residents get 4 bulky item pick-ups a year and they allow 4 items with each pick-up. Residents also get quarterly Household Hazardous pick up. This contract complies with the organic waste disposal requirement and is only a 7 year contract. There is a 5% cap on CPI. Los Alamitos is only 25% the size of Cypress so it seems like economies of scale doesn’t play into it. Can you help to understand how the Valley Vista deal is better? Thanks, George 714-595-0123 City of Los Alamitos CITY COUNCIL AGENDA REPORT MEETING DATE: December 6, 2021 ITEM NUMBER: 5A To: Mayor Mark A. Chirco & Members of the City Council Via: Chet Simmons, City Manager Presented By: Ron Noda, Development Services Director Subject: Franchise Agreement between the City of Los Alamitos and Universal Waste Systems for Integrated Waste Management Services SUMMARY This report recommends approval of an exclusive franchise agreement with Universal Waste Systems (UWS) for Integrated Waste Management Services. RECOMMENDATION Authorize the Mayor to execute a franchise agreement with Universal Waste Systems (UWS) for integrated waste management services for an initial term of seven (7) years from January 1, 2022 to December 31, 2028 with an option exercisable by the City for a three (3) year extension. BACKGROUND The City of Los Alamitos has utilized an exclusive franchise agreement for approximately the last ten years which includes regularly scheduled collection and processing of trash, recyclables, organic waste, and street sweeping services. The City’s current provider, Consolidated Disposal Services, LLC dba Republic Services, franchise agreement is set to expire on December 31, 2021. The City requested proposals from qualified solid waste and recycling service providers for (1) the collection, transfer, processing, recycling, and disposal of barrel-served residential refuse, and bin-served residential, and commercial sector refuse, (2) the collection, processing, and marketing of residential and commercial sector recyclables, and (3) the collection, processing, and acceptable landfill diversion of residential and commercial organic waste in a manner that is compliant with both Assembly Bill (AB) 1826 and all relevant Senate Bill (SB) 1383 regulations. SB 1383 is a significant Approval of UWS-City of Los Alamitos Franchise Agreement December 6, 2021 Page 2 of 4 unfunded State mandate regarding solid waste management that takes effect on January 1, 2022. The selected provider will be required to prepare and implement a public education and outreach program at its sole expense that is consistent with the City’s Source Reduction and Recycling Element (SRRE) and regulatory requirements established via AB 341, AB 1826, AB 827 and within SB 1383 regulations. The RFP was advertised in the local newspaper, the City’s website, and notices were emailed to all haulers providing franchise service to jurisdictions in Orange County, and to the California Waste and Recycling Association. Nine (9) firms attended the mandatory pre-proposal meeting held on Thursday, May 26, 2021 with seven (7) firms submitting proposals. At the October 11, 2021 meeting, Council discussed and determined that Universal Waste Systems (UWS) offered the best overall package to the City including feedback received on customer service, experience, and financial provisions. Based on the assessment done by the Waste Hauler RFP Review Committee, Council provided direction for staff to negotiate with UWS. DISCUSSION Universal Waste Systems (UWS) UWS has serviced Los Angeles County since 1986, is one of the largest local family owned and operated waste services companies, and operates in California, Arizona, and New Mexico. UWS is an established firm with six (6) operating facilities, transfer stations, and over 500 employees that services Orange County, Los Angeles County, and Riverside County. Term of Agreement The proposed agreement will run for seven (7) years commencing on January 1, 2022, with a an option exercisable by City to extend the agreement on the same terms and conditions for up to three (3) additional years for a potential maximum term of ten (10 years. The agreement obligates UWS to provide a comprehensive array of programs for the collection of solid waste, recyclables, green waste, large bulky items, and household hazardous waste from residential and commercial customers. The program for the collection of organic waste will meet the State law mandates commencing on January 1, 2022. The proposed agreement also obligates UWS to provide additional services, such as a monthly sweep of the City for illegally abandoned items, Christmas tree pickups, provide bins for City sponsored events, and the collection of waste from City facilities, all at no additional charge. Additionally, UWS via their portable toilet and liquid waste management division, OH Casey, will provide portable toilets and handwashing stations for all City sponsored events at no additional charge to the City. Approval of UWS-City of Los Alamitos Franchise Agreement December 6, 2021 Page 3 of 4 The proposed agreement includes liquidated damages if UWS breaches specific obligations during the course of the agreement. Examples of the liquidated damages include, but are not limited to: • For each failure to commence service to a new Customer account within seven (7) days after order: $200.00. • For each failure to Collect Solid Waste from any established Customer on the scheduled Collection day and not Collected within the period described in this Agreement which exceed five (5) such failures annually: $200.00. • For each failure to Collect Solid Waste, which has been properly set out for Collection, from the same Customer on two (2) consecutive scheduled pickup days: $200.00. • For each failure to initially respond to a Customer complaint within one (1) business day, which exceeds five (5) such occurrences annually, and for each additional day in which the complaint is not addressed: $150.00. • For each failure to process Customer complaints to City as required herein, which exceeds five (5) such occurrences annually: $200.00. City Fees As prescribed in the proposed agreement, UWS will be required to remit the following fees to the City: • Franchise Fee – 10% of gross receipts of any kind that are related to the franchise granted, with the lone exception being revenue from the sale of recyclable items from the discarded materials managed through the franchise service. This is an increase from the current 8% Franchise Fee. • Franchise Monitoring and Compliance Assistance Fee – An annual payment to the City of $75,000 payable upon execution of the agreement and annually thereafter on January 1st of each successive year. • RFP Reimbursement Fee – Upon execution of the agreement, the UWS will be required to remit to the City a one-time administrative fee of $45,000 to reimburse the City for staff time, consultant and attorney fees, and out of pocket expenses for developing and processing the RFP, and related to the negotiation and award of the Agreement. • Business License – The selected service provider and any of its subcontractors will be required to maintain appropriate business licensing during the term of the agreement. Approval of UWS-City of Los Alamitos Franchise Agreement December 6, 2021 Page 4 of 4 • Street Sweeping – An annual payment to the City of $125,000 to support City contracting with a firm to clean its streets of litter and other debris. • Charitable Community Contribution – An annual payment to the City of $20,000, payable January 1st of each calendar year, to support the City’s special events and programming for the community. • Annual Consumer Price Index Adjustment – The collection rates are set forth in Exhibit “A” attached to this report. FISCAL IMPACT The proposed agreement includes reimbursement for the costs of negotiating the contract ($45,000), the annual franchise monitoring and compliance assistance fee ($75,000), an annual payment to support the City’s street sweeping contract ($125,000), and the charitable community contribution to support the City’s special events and programming ($20,000). UWS has agreed to pay a franchise fee of 10% to the City for the privilege of providing exclusive solid waste handling services. The franchise fee will be paid in quarterly installments, with an estimated first year total of $450,000. Submitted by: Ron Noda, Development Services Director Approved by: Chet Simmons, City Manager Attachment: 1. Franchise Agreement with UWS for Integrated Waste Management Services With Exhibit A - Rate Sheets 2. Universal Waste Systems Bid Submitted on July 25, 2021 1645189.1 LOS ALAMITOS SOLID WASTE SERVICES CONTRACT CONTRACT FOR THE PROVISION OF SOLID WASTE HANDLING SERVICES Executed Between the City of Los Alamitos and Universal Waste Systems, Inc. Effective this 6th day of December, 2021 TABLE OF CONTENT Page -i- 1645189.1 SECTION 1. RECITALS ............................................................................................ 2 SECTION 2. DEFINITIONS ....................................................................................... 2 2.1 AB 341 … ............................................................................................................. 2 2.2 AB 876 .. ............................................................................................................... 3 2.3 AB 901 … ............................................................................................................. 3 2.4 AB 939 .. ............................................................................................................... 3 2.5 AB 1594 ................................................................................................................ 3 2.6 AB 1826 ................................................................................................................ 3 2.7 Affiliated ............................................................................................................... 3 2.8 Alternative Daily Cover (ADC) ............................................................................ 3 2.9 Alternative Facility ............................................................................................... 4 2.10 Alternative Intermediate Cover (AIC) .................................................................. 4 2.11 Animal Waste........................................................................................................ 4 2.12 Applicable Laws .................................................................................................. 4 2.13 Approved C&D Pocessing Facility ....................................................................... 4 2.14 Approved Disposal Facility .................................................................................. 4 2.15 Approved Facilities ............................................................................................... 4 2.16 Approved High Diversion Organic Waste Processing Facility ............................ 4 2.17 Approved Organic Waste Processing Facility ...................................................... 4 2.18 Approved Source Separated Recyclable Materials Processing Facility ............... 5 2.19 Approved Transfer Facility ................................................................................... 5 2.20 Back-Haul ............................................................................................................. 5 2.21 Billings … ............................................................................................................. 5 2.22 Bins …… .............................................................................................................. 5 2.23 Blue Container ...................................................................................................... 5 2.24 Brown Container ................................................................................................... 5 2.25 Bulky Items ........................................................................................................... 5 2.26 C&D ……. ............................................................................................................ 6 2.27 C&D Collection Site ............................................................................................. 6 2.28 California Code of Regulations (CCR) ................................................................. 6 2.29 CalRecyle .............................................................................................................. 6 2.30 Cart ……. .............................................................................................................. 6 2.31 City ……. .............................................................................................................. 6 2.32 City Council .......................................................................................................... 6 2.33 City Limits ............................................................................................................ 7 2.34 City Manager ........................................................................................................ 7 2.35 Collect/Collection/Collecting ............................................................................... 7 2.36 Collection Vehicle ................................................................................................ 7 2.37 Commercial Business (Commercial) .................................................................... 7 2.38 Commercial Edible Food Generators.................................................................... 7 2.39 Community Composting ....................................................................................... 7 2.40 Compostable Plastics ............................................................................................ 7 2.41 Compost ............................................................................................................. ..8 2.42 Construction and Demolition Debris (C&D) ........................................................ 8 2.43 Container(s)........................................................................................................... 8 2.44 Contractor ............................................................................................................. 8 2.45 Contractor Self-haul .............................................................................................. 8 TABLE OF CONTENT Page -ii- 1645189.1 2.46 Contractor's Proposal ............................................................................................ 8 2.47 County Agreement ................................................................................................ 8 2.48 Customer ............................................................................................................... 9 2.49 Discarded Materials .............................................................................................. 9 2.50 Disposal ................................................................................................................ 9 2.51 Diversion ............................................................................................................... 9 2.52 Dual Stream (or Dual-Stream) .............................................................................. 9 2.53 Edible Food ........................................................................................................... 9 2.54 Effective Date ..................................................................................................... 10 2.55 Environmental Laws ........................................................................................... 10 2.56 Excluded Waste .................................................................................................. 10 2.57 Facility(ies) ......................................................................................................... 10 2.58 Food Recovery .................................................................................................... 10 2.59 Food Recovery Organization .............................................................................. 11 2.60 Food Recovery Service ....................................................................................... 11 2.61 Food Scraps ......................................................................................................... 11 2.62 Food-Soiled Paper ............................................................................................... 11 2.63 Food Waste ......................................................................................................... 11 2.64 Franchise Area .................................................................................................... 11 2.65 Franchise Fee ...................................................................................................... 12 2.66 Generator............................................................................................................. 12 2.67 Gray Container .................................................................................................... 12 2.68 Green Container .................................................................................................. 12 2.69 Gross Receipts .................................................................................................... 12 2.70 Hauler Route ....................................................................................................... 12 2.71 Hazardous Substance .......................................................................................... 12 2.72 Hazardous Waste ................................................................................................ 13 2.73 High Diversion Organic Waste Processing Facility ........................................... 13 2.74 Inerts ..… ............................................................................................................ 13 2.75 City Contract Manager ........................................................................................ 13 2.76 Landfill … ........................................................................................................... 13 2.77 Large Event ......................................................................................................... 13 2.78 Large Venue ........................................................................................................ 13 2.79 Liquidated Damages ........................................................................................... 14 2.80 Medical Waste .................................................................................................... 14 2.81 Mixed Waste ....................................................................................................... 14 2.82 Mixed Waste Organic Collection Stream ........................................................... 14 2.83 Mulch .... ............................................................................................................. 14 2.84 Multi-Family or Multi-Family Dwelling Unit .................................................... 15 2.85 Municipal Code ................................................................................................... 15 2.86 Non-Compostable Paper ..................................................................................... 15 2.87 Non-Organic Recyclables ................................................................................... 15 2.88 Organic Waste ..................................................................................................... 15 2.89 Paper Products .................................................................................................... 15 2.90 Parent Company .................................................................................................. 16 2.91 Party or Parties .................................................................................................... 16 TABLE OF CONTENT Page -iii- 1645189.1 2.92 Person .... ............................................................................................................. 16 2.93 Premises . ............................................................................................................ 16 2.94 Printing and Writing Papers ................................................................................ 16 2.95 Process, Processed, or Processing ....................................................................... 16 2.96 Prohibited Container Contaminants .................................................................... 16 2.97 Property Owner ................................................................................................... 17 2.98 Public Resources Code (PRC) ............................................................................ 17 2.99 Putrescible Waste ................................................................................................ 17 2.100 Rate…… ............................................................................................................. 17 2.101 Rate Period .......................................................................................................... 17 2.102 Recycle/Recycling .............................................................................................. 17 2.103 Remnant Organic Material .................................................................................. 18 2.104 Renewable Natural Gas (RNG) .......................................................................... 18 2.105 Residual (or Residue) .......................................................................................... 18 2.106 Responsible Customer ........................................................................................ 18 2.107 Reusable Items .................................................................................................... 18 2.108 Reuse …. ............................................................................................................. 19 2.109 Roll-Off Box ....................................................................................................... 19 2.110 Salvageable Material (or Salvaged Material) ..................................................... 19 2.111 SB 1383 … .......................................................................................................... 19 2.112 SB 1383 Regulations........................................................................................... 19 2.113 Self-Hauler (or Self-Haul) .................................................................................. 19 2.114 Service Level ...................................................................................................... 19 2.115 Single Family or Single-Family Dwelling (SFD) ............................................... 19 2.116 Solid Waste ......................................................................................................... 20 2.117 Source Separated ................................................................................................. 20 2.118 Source Separated Blue Container Organic Waste (SSBCOW) .......................... 20 2.119 Source Separated GreenContainer Organic Waste (SSGCOW .......................... 20 2.120 Source Separate Recyclable Materials ................................................................ 21 2.121 State ……............................................................................................................ 21 2.122 Suncontractor ...................................................................................................... 21 2.123 Subsidiary ........................................................................................................... 21 2.124 Temporary Service .............................................................................................. 21 2.125 Term ..… ............................................................................................................. 21 2.126 Tier One Commercial Edible Food Generators .................................................. 21 2.127 Tier Two Commercial Edible Food Generators .................................................. 22 2.128 Ton ……. ............................................................................................................ 22 2.129 Transfer … .......................................................................................................... 22 2.130 Transformation .................................................................................................... 22 2.131 Transportation or Transport ................................................................................ 23 2.132 Universal Waste (or U-Waste) ............................................................................ 23 2.133 Work Days .......................................................................................................... 23 2.134 Yard Trimmings .................................................................................................. 23 SECTION 3. GRANT OF EXCLUSIVE FRANCHISE FOR SOLID WASTE HANDLING SERVICES FROM ALL RESIDENTIAL AND COMMERCIAL TABLE OF CONTENT Page -iv- 1645189.1 PREMISES, AND FOR PROVIDING TEMPORARY SOLID WASTE HANDLING SERVICE ...................................................................................... 23 3.1 Scope of Franchise .............................................................................................. 23 3.2 Matters Excluded from Scope of Franchise ........................................................ 23 SECTION 4. ENFORCEMENT OF EXCLUSIVITY .............................................. 25 SECTION 5. ACCEPTANCE; WAIVER ................................................................. 25 SECTION 6. TERM……. ......................................................................................... 25 SECTION 7. CONDITIONS TO EFFECTIVENESS OF AGREEMENT ............... 26 7.1 Accuracy of Representation ................................................................................ 26 7.2 Absence of Litigation .......................................................................................... 26 7.3 Furnishing of Insurance and Bonds, Letter of Credits, or Asset Pledge ............. 26 7.4 Effectiveness of City Council Action ................................................................. 26 7.5 Payment of Fees and Costs ................................................................................. 26 SECTION 8. SOLID WASTE HANDLING SERVICES PROVIDED BY7CONTRACTOR .......................................................................................... 27 8.1 General .. ............................................................................................................. 27 8.2 Recidential Three-Container System (Blue, Green, and Gray Containers) ........ 27 8.3 Commercial Three (3) and Three (3) plus Container Collection for Source Separated Recyclable Materials, Green Waste, Organics (Food Scraps) and Waste …………………………………………………………………………28 8.4 Multi-family Residential and Optional Commercial Two (2) Container Source Separated Recyclable Materials and Mixed Waste Collection (Blue and Gray Containers) .......................................................................................................... 30 8.5 City Facility and Community Event Services ..................................................... 30 8.6 C&D Collection .................................................................................................. 31 8.7 Hazardous Household Waste, Christmas Tree Pickup, and Bulky Item Collection 31 8.7.1 Equipment ............................................................................................ 31 8.7.2 Performance Standards ........................................................................ 32 8.7.3 Noise and Disruption ........................................................................... 32 8.7.4 Collection Times .................................................................................. 32 8.7.5 Collection Schedule ............................................................................. 32 8.7.6 Commingling of Routes ....................................................................... 32 8.7.7 Contractor's Containers ........................................................................ 33 8.7.8 Missed Pick-Ups .................................................................................. 35 8.7.9 Record of Non-Collection .................................................................... 35 8.7.10 Comercial Bulky Item Service ............................................................. 36 8.7.11 Scout and/or Push Out services............................................................ 36 8.8 Other Collection Programs As May Be Required by Law ................................. 36 8.9 Contractor Shall Present the Proposed Program within 60 Days ....................... 37 8.9.1 Warranties and Representations ........................................................... 38 8.9.2 Mutual Cooperation ............................................................................. 38 8.9.3 Waste Reduction and Program Implementation .................................. 38 8.9.4 Guarantee and Indemnification ............................................................ 40 8.9.5 Guaranteed Minimum Contractor Recycling Rate .............................. 41 8.9.6 Waste Generation/Characterization Studies ........................................ 42 TABLE OF CONTENT Page -v- 1645189.1 SECTION 9. OTHER SERVICES ............................................................................ 42 9.1 Transfer, Processing, and Disposal ..................................................................... 42 9.2 City Reserves Right to Direct Use of City-Designated Facility at a Later Date. 43 9.3 Contamination Monitoring.................................................................................. 43 9.3.1 Contamination Monitoring Procedures ................................................ 43 9.3.2 Ongoing Contamination Monitoring.................................................... 47 9.3.3 Contamination Monitoring (Hauler Route Review Option) ................ 47 9.4 Education and Outreach ...................................................................................... 48 9.5 Technical Assistance by Contractor.................................................................... 56 9.6 Food Recovery Program Support ....................................................................... 59 9.7 Billing … ............................................................................................................ 60 9.8 Generator Waiver Program Condition ................................................................ 61 9.9 Service Waiver Program Coordinator ................................................................ 62 9.10 Inspection and Enforcement ............................................................................... 63 9.11 Service Complaints ............................................................................................. 65 9.12 Provision of Recovered Organic waste Products ................................................ 66 SECTION 10. MINIMUM STANDARDS FOR CONTRACTOR'S SOLID WASTE HANDLING SERVICE COLLECTION VEHICLES ....................................... 67 10.1 General .. ............................................................................................................. 67 10.2 Air Quality/Fuel Requirements ........................................................................... 68 10.3 Specific Requirements ........................................................................................ 68 10.4 Cost of Operation and Damages ......................................................................... 71 10.5 City Inspection .................................................................................................... 71 10.6 Correction of Defects and Removal of Vehicles for Use within City ................ 71 SECTION 11. CONTRACTOR’S SOLID WASTE HANDLING SERVICE PERSONNEL…………………. ........................................................................ 71 11.1 Uniforms ............................................................................................................. 71 11.2 Identification of Employees ................................................................................ 71 11.3 Employee List ..................................................................................................... 71 11.4 Driver's License .................................................................................................. 71 11.5 Screening of Field Employees ............................................................................ 72 11.6 Discontinue Use of Unsatisfactory Employees................................................... 72 11.7 Training and Legal Compliance.......................................................................... 72 11.8 Customer Service ................................................................................................ 72 11.8.1 Office Hours......................................................................................... 72 11.8.2 Telephone Customer Service Requirements ........................................ 72 11.8.3 Toll Free Number ................................................................................. 72 11.8.4 Call Responsiveness............................................................................. 73 11.8.5 Complaint Documentation ................................................................... 73 11.8.6 Resolution of Customer Complaints .................................................... 73 11.8.7 Government Liaison............................................................................. 74 11.9 Education and Public Awareness ........................................................................ 74 11.9.1 General ................................................................................................. 74 11.9.2 Written Program Materials .................................................................. 74 11.9.3 Public Putreach .................................................................................... 74 11.9.4 Corrective Action Notice ..................................................................... 74 TABLE OF CONTENT Page -vi- 1645189.1 11.9.5 Contractor Representative .................................................................... 74 SECTION 12. CONTRACTOR’S CONSIDERATION ............................................ 75 12.1 Reimbursement of Negotiation Cost ................................................................... 75 12.2 SB 1383 Regulatory Reimbursement.................................................................. 75 12.3 Franchise Fee ...................................................................................................... 75 12.4 Street Sweeping and Litter Abatement Fee ........................................................ 75 12.5 Charitable Communty Contribution ..................................................................75 SECTION 13. CHARGES FOR LATE PAYMENTS ............................................... 76 13.1 Billing … ............................................................................................................ 76 13.1.1 Suspension of Service Due to Non-Payment ....................................... 76 13.2 Minimum Requirements for Billing Statements ................................................. 77 13.3 Billing System ..................................................................................................... 78 13.3.1 Computerization of Account Information ........................................... 78 13.3.2 Minimum Computer Programming Requirements .............................. 78 13.3.3 Billing Inquiries ................................................................................... 78 13.4 Payment, Accounting Systems............................................................................ 78 13.4.1 Collection and Processing of Payments .............................................. 78 13.4.1.1 Accounting and Deposit of Funds..................................... 78 13.4.1.2 Allocation of Funds........................................................... 79 SECTION 14. FAITHFUL PERFORMANCE ........................................................... 79 14.1 Surety … ............................................................................................................. 79 14.1.1 Forfeiture of Surety .............................................................................. 79 14.1.2 Use of Surety by City ........................................................................... 79 14.2 Cash Bond ........................................................................................................... 80 14.2.1 Forfeiture of Cash Bond....................................................................... 80 14.2.2 Use of Cash Bond by City .................................................................. 80 14.3 Replacement Letter by Credit ............................................................................. 80 SECTION 15. INSURANCE COVERAGE ............................................................... 80 15.1 Minimum Scope of Insurance ............................................................................ 81 15.2 Minimum Limits of Insurance ............................................................................ 81 15.2.1 Commercial General Liability ............................................................ 81 15.2.2 Automobile Liability ............................................................................ 81 15.2.3 Workers’ Compensation and Employers Liability .............................. 81 15.3 Deductiblles and Self Insured Retentions ........................................................... 81 15.4 Other Insurance Provisions ................................................................................ 82 15.4.1 General Liability .................................................................................. 82 15.4.2 Workers’ Compensation and Employers Liability Coverage .............. 82 15.4.3 Environmental Pollution Control Isurance .......................................... 82 15.4.4 All Coverages....................................................................................... 82 15.5 Acceptability of Insurance .................................................................................. 82 15.6 Verification of Coverage .................................................................................... 83 15.7 Loss or Redution in Insurance ............................................................................ 83 SECTION 16. ASSIGNMENT, SUBLETTING, AND TRANSFER; REQUIREMENTS AND LIMITATIONS …………………………….………83 16.1 General .. ............................................................................................................. 83 16.2 Assignmnets to be Broadly Interpretered ........................................................... 83 TABLE OF CONTENT Page -vii- 1645189.1 16.3 Nature of Agreement – Personal to Contractor ................................................... 84 16.4 Procedure for Consideration of Assignment ...................................................... 84 SECTION 17. REVIEW OF SERVICES AND PERFORMANCE .............................. 85 17.1 Performance Hearing ......................................................................................... 85 SECTION 18. CITY’S REMEDIES; DEFAULT AND TERMINATION ................... 86 18.1 Notice of Default ................................................................................................ 86 18.2 Failure to Cure ................................................................................................... 86 18.3 Review by City Manager ................................................................................... 87 18.4 City Counsel Review ......................................................................................... 87 18.5 Performance Durig Review ................................................................................ 87 18.6 Termination without Right to Cure .................................................................... 87 18.7 Liquidated Damages .......................................................................................... 88 18.7.1 General ................................................................................................ 88 18.7.2 Service Performance Standards; Liquidated Damages for Failure to Meet Standards ............................................................................................................ 89 18.7.3 Calculations for Liquidated Damages ................................................. 89 18.7.3.1 Collection Reliability ....................................................... 89 18.7.3.2 Collection Quality ............................................................ 90 18.7.3.3 Customer Responsiveness ................................................ 90 18.7.3.4 Timeliness of Submission to City .................................... 90 18.7.3.5 Coopertive During Transition with Subsequent Solid Waste Enterpeise ........................................................................................................... 90 18.7.3.6 Minimum Haulter Recycling Requirements .................... 91 18.7.4 Process for Assessment of Liquidated Damages ................................ 91 18.7.5 Timing of Payment ............................................................................. 91 SECTION 19. CONTRACTOR’S REMEDIES; ADMINISTRATIVE HEARING ..... 92 19.1 Administrative Hearig ........................................................................................ 92 19.2 Other Remedies; Claims .................................................................................... 92 19.3 Actions for Damages .......................................................................................... 92 SECTION 20. CITY’S ADDITIONAL REMEDIES .................................................... 92 SECTION 21. RIGHTS OF CITY TO PERFORM DURING EMERGENCY ............ 93 21.1 Provision of Service ........................................................................................... 93 21.2 Possession of Equipment ................................................................................... 93 21.3 Exclusion from Right to Possession of Equipment withou Compensation ....... 93 SECTION 22. PRIVACY .............................................................................................. 93 SECTION 23. REPORTS AND ADVERSE INFORMATION .................................... 94 23.1 Monthly Reports ................................................................................................ 94 23.2 Quarterly Reports ............................................................................................... 94 23.3 Annual Reports .................................................................................................. 95 23.4 Format of Reports .............................................................................................. 95 23.5 Adverse Information .......................................................................................... 96 23.6 Disaster Plan ...................................................................................................... 96 23.7 Failure to Report ................................................................................................. 97 SECTION 24. COMPENSATION ................................................................................ 97 24.1 Contractor Rates ................................................................................................. 97 24.2 Resolution of Disputes Regarding Rate adjustments ......................................... 97 TABLE OF CONTENT Page -viii- 1645189.1 24.3 Annual Consument Price Index Adjustments .................................................... 97 24.4 Limitations to Annual CPI Adjustments ............................................................ 98 24.4.1 Five Percent (5%) Cap ........................................................................ 98 24.4.2 Complince with Agreement ................................................................ 98 24.5 Discretional Adjustments .................................................................................... 98 SECTION 25. IDENTIFICATION OF CONTRACTOR ............................................. 99 SECTION 26. CITY’S FLOW COTROL OPTION/COUNTY AGREEMENT .......... 99 26.1 Flow Control Option .......................................................................................... 99 26.2 County Agreement ............................................................................................. 99 SECTION 27. INDEMNIFICATION .......................................................................... 100 27.1 General . ........................................................................................................... 100 27.2 Hazardous Substances Idemnification ............................................................. 102 SECTION 28. CONTRACTOR’S BOOKS AND RECORDS; AUDITS.................... 102 28.1 Maintenance and inspection of Records .......................................................... 102 28.2 CERCLA Defense Records .............................................................................. 103 28.3 Ongoing Compliance Review .......................................................................... 103 28.4 Audits .... ........................................................................................................... 103 28.4.1 Examination of Services ................................................................... 103 28.4.2 Route Audit ....................................................................................... 104 SECTION 29. TRANSITION OBLIGATIONS ........................................................... 105 SECTION 30. GENERAL PROVISIONS ................................................................... 105 30.1 Force Majeure .................................................................................................. 105 30.2 Independent Contractor .................................................................................... 106 30.3 Pavemet Damage ............................................................................................. 106 30.4 Property Damage.... .......................................................................................... 106 30.5 Right of Entry .................................................................................................. 106 30.6 Law to Govern; Venue ..................................................................................... 106 30.7 Amendment ...................................................................................................... 106 30.8 Notices .. ........................................................................................................... 107 30.9 Savings Clause.... .............................................................................................. 107 30.10 Exhibits Incorporated ....................................................................................... 107 30.11 Joint Drafting ................................................................................................... 107 30.12 Attorneys’ Fees and Litigation Costs ............................................................... 107 30.13 City’s Authorized Agent .................................................................................. 108 30.14 Integrated Agreement........................................................................................ 108 30.15 Section Headings ............................................................................................. 108 30.16 Compliance with Law ...................................................................................... 108 30.17 No Third Party Beneficiaries ........................................................................... 108 EXHIBIT A MAXIMUM RATE SCHEDULE FOR SOLID WASTE HANDLING SERVICES…….. .............................................................................................. 110 1 1645189.1 AGREEMENT This Agreement ("Agreement") is entered into to be effective as of the 6th day of December, 2021, by and between the City of Los Alamitos ("City ") and Universal Waste System, Inc. ("Contractor") (collectively, the "Parties") to provide an exclusive franchise for Solid Waste Handling Services within the City. R E C I T A L S: A. WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989 (“AB 939”), has declared that it is in the public interest to authorize and require local agencies to make adequate provision for the handling of all Solid Waste within their City s. B. WHEREAS, the State of California has found and declared that the amount of Solid Waste generated in California, coupled with diminishing Disposal capacity and interest in minimizing potential environmental impacts from landfilling and the need to conserve natural resources, have created an urgent need for State and local agencies to enact and implement an aggressive integrated waste management program. The State has, through enactment of AB 939 and subsequent related legislation including, but not limited to: the Jobs and Recycling Act of 2011 (AB 341), the Event and Venue Recycling Act of 2004 (AB 2176), SB 1016 (Chapter 343, Statutes of 2008 [Wiggins, SB 1016]), the Mandatory Commercial Organics Recycling Act of 2014 (AB 1826), and the Short-Lived Climate Pollutants Bill of 2016 (SB 1383), directed the responsible State agency, and all local agencies, to promote a reduction in Landfill Disposal and to maximize the use of feasible waste reduction, Reuse, Recycling, and composting options in order to reduce the amount of material that must be Disposed; and, C. WHEREAS, SB 1383 establishes regulatory requirements for Cities, Generators, haulers, Solid Waste facilities, and other entities to support achievement of State-wide Organic Waste Disposal reduction targets; and, D. WHEREAS, SB 1383 Regulations require City to implement Collection programs, meet Processing facility requirements, conduct contamination monitoring, provide education, maintain records, submit reports, monitor compliance, conduct enforcement, and fulfill other requirements; and, City has chosen to delegate some of its responsibilities to the Contractor, acting as the City ’s designee, through this Agreement; and E. WHEREAS, pursuant to California Public Resources Code Section 40059(a)(2), the City has determined that the public health, safety, and well-being require that Non-Exclusive Franchise Agreements for Discarded Materials Management for Multi-Family and Commercial Customers (Agreement) be awarded to qualified companies for the Collection and subsequent Transfer, Transportation, Recycling, Processing, and/or Disposal of Discarded Materials; and, F. WHEREAS, the City and Contractor are mindful of the provisions of the laws governing the safe collection, transport, recycling, processing and disposal of Solid Waste, including AB 939, SB 1383, the Resource Conservation and Recovery Act (“RCRA”), and the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”). City and Contractor desire to leave no doubts as to their respective roles, and to memorialize that by 2 1645189.1 entering into this Agreement, City is not thereby becoming an “arranger” or a “generator” as those terms are used in CERCLA, and that it is Contractor, not City, who is “arranging for” the collection, transport for disposal, composting, and recycling of municipal Solid Waste in the City which may contain hazardous substances. City and Contractor understand and agree that it is Contractor, and not City , who will arrange to collect Solid Waste, that City has not, and, by this Agreement does not, instruct Contractor on its collection methods, nor supervise the collection process, nor do the Parties intend to place title to such Solid Waste in City , but rather intend that whatever, if any, title in and to such Solid Waste that otherwise might exist in or with City in the absence of this Agreement is hereby transferred to Contractor, and further that if Contractor gains title to such Solid Waste it is by operation of law and agreement with its Customers and is not the result of this Agreement. By entering into this Agreement City and Contractor further desire to confirm that Contractor has agreed to indemnify the City in connection with any claims relating to the inadvertent or intentional collection, transportation and/or disposal of hazardous materials that may occur in connection with Contractor’s performance under this Agreement. G. WHEREAS, Contractor desires to engage in the business of Collecting Discarded Materials in the City; and, H. WHEREAS, City desires, among other things, to ensure adequate landfills remain available to meet the public’s need for the safe handling and disposal of Solid Waste, and further desires to ensure its citizens do not incur undue costs in safely disposing of Solid Waste they generate, and has thus entered into the County Agreement. Contractor has agreed, as part of this Agreement, to provide such services and take such actions as are necessary or desirable to ensure City complies with its obligations pursuant to the County Agreement. NOW, THEREFORE, in consideration of the promises above stated and the terms, conditions, covenants, and agreements contained herein, the Parties do hereby agree as follows: C O V E N A N T S: Based upon the foregoing Recitals and for good and valuable consideration, the receipt and sufficiency of which is acknowledged by each of the Parties, City and Contractor hereby agree as follows: SECTION 1. RECITALS The Parties acknowledge the above recitals are true and correct and incorporate them herein as if they were fully restated. SECTION 2. DEFINITIONS Whenever any term used in this Agreement has been defined by the California Public Resources Code, the definition of such term set forth therein shall apply unless the term is otherwise defined in this Agreement. 2.1 AB 341 “AB 341” shall mean Assembly Bill 341 from the 2011-2012 Regular Session of the California Legislature (Chapter 476, Statutes 2011). 3 1645189.1 2.2 AB 876 “AB 876” means the Assembly Bill approved by the Governor of the State of California on October 8, 2015, which added Section 418214 to the Public Resources Code, relating to Solid Waste as amended, supplemented, superseded, and replaced from time to time. 2.3 AB 901 “AB 901” means Assembly Bill approved by the Governor of the State of California on October 10, 2015, which amended Section 41821.5 of, amended, renumbered and added Section 41821.6 of, and added Sections 41821.7 and 41821.8 to, the Public Resources Code, relating to Solid Waste, as amended, supplemented, superseded, and replaced from time to time. 2.4 AB 939 “AB 939” shall mean the California Integrated Waste Management Act of 1989, currently codified as California Public Resources Code Section 40000 et seq., as it may be amended from time to time. 2.5 AB 1594 “AB 1594” shall mean Assembly Bill 1594 from the 2013-2014 Regular Session of the California Legislature (Chapter 719, Statutes 2014). 2.6 AB 1826 “AB 1826” shall mean Assembly Bill 1826 from the 2013-2014 Regular Session of the California Legislature (Chapter 727, Statutes 2014). 2.7 Affiliate “Affiliate” means a business in which Contractor owns a direct or indirect ownership interest, a business (including corporations, limited and general partnerships and sole proprietorships) which has a direct or indirect ownership interest in Contractor and/or a business which is also owned, controlled or managed by any business or individual which has a direct or indirect ownership interest in Contractor. For purposes of determining whether an indirect ownership interest exists, the constructive ownership provisions of Section 318(a) of the Internal Revenue Code of 1986, as in effect on the date of this Agreement, shall apply; provided, however, that (i) “ten percent (10%)” shall be substituted for “fifty percent (50%)” in Section 318(a)(2)(C) and in Section 318(a)(3)(C) thereof; and (ii) Section 318(a)(5)(C) shall be disregarded. For purposes of determining ownership under this paragraph and constructive or indirect ownership under Section 318(a), ownership interest of less than ten percent (10%) shall be disregarded and percentage interests shall be determined on the basis of the percentage of voting interest or value which the ownership interest represents, whichever is greater. 2.8 Alternative Daily Cover (ADC) “Alternative Daily Cover” or “ADC” has the same meaning as in 27 CCR Section 20690. 4 1645189.1 2.9 Alternative Facility “Alternative Facility” means any Facility approved by City for Contractor use that is not specifically identified in 14 CCR Section 18983(b) or not otherwise described herein. 2.10 Alternative Intermediate Cover (AIC) “Alternative Intermediate Cover” or “AIC” has the same meaning as in 27 CCR Section 20700. 2.11 Animal Waste “Animal Waste” shall mean animal carcasses, dead animals, and/or parts or portions of dead animals. Animal Waste shall not include manure. 2.12 Applicable Laws “Applicable Laws” shall mean all federal, state, county, and local laws, regulations, rules, orders, judgments, decrees, permits, approvals, or other requirements of any governmental agency having jurisdiction over an aspect of this Agreement that are in force on the Effective Date, and as may be enacted, issued or amended thereafter, including without limitation City’s Municipal Code, AB 341, AB 939, AB 1594, AB 1826 and SB 1383. 2.13 Approved C&D Processing Facility “Approved C&D Processing Facility” means the Facility Name at Facility Address, which is owned and operated by Owner Name, that is a C&D Processing Facility and was Contractor selected and City approved. 2.14 Approved Disposal Facility “Approved Disposal Facility” means the various landfills owned and operated by the County of Orange, that the City of Los Alamitos has agreed to use under separate agreement. 2.15 Approved Facilities “Approved Facility(ies)” means any one of or any combination of the: Approved C&D Processing Facility; Approved Disposal Facility; Approved High Diversion Organic Waste Processing Facility; Approved Organic Waste Processing Facility; Approved Source Separated Recyclable Materials Processing Facility; and, Approved Transfer Facility, each of which are defined in this Section. 2.16 Approved High Diversion Organic Waste Processing Facility “Approved High Diversion Organic Waste Processing Facility” means a High Diversion Organic Waste Processing Facility that is Contractor selected and City approved. 2.17 Approved Organic Waste Processing Facility 5 1645189.1 “Approved Organic Waste Processing Facility” means an Organic Waste Processing Facility that is Contractor selected and City approved. 2.18 Approved Source Separated Recyclable Materials Processing Facility “Approved Source Separated Recyclable Materials Processing Facility” means a Source Separated Recyclable Materials Processing Facility that is Contractor selected and City approved. 2.19 Approved Transfer Facility “Approved Transfer Facility” means a Transfer Facility that is Contractor selected and City approved. 2.20 Back-Haul “Back-Haul” means generating and transporting Organic Waste to a destination owned and operated by the Generator using the Generator’s own employees and equipment, or as otherwise defined in 14 CCR Section 18982(a)(66)(A). 2.21 Billings “Billings” or “Billing” or “Bill” means the statements of charges provided to Customers or Responsible Customers for services rendered by Contractor pursuant to the terms of this Agreement. 2.22 Bins “Bins” shall mean a Container, including dumpsters, compactors, and any similar such devices with a capacity of under ten (10) cubic yards. 2.23 Blue Container “Blue Container” has the same meaning as in 14 CCR Section 18982.2(a) (5) and shall be used for the purpose of storage and Collection of Source Separated Recyclable Materials or SSBCOW. 2.24 Brown Container “Brown Container” has the same meaning as in 14 CCR Section 18982.2(a) (5.5) and shall be used for the purpose of storage and Collection of Source Separated Food Waste. 2.25 Bulky Items “Bulky Items” means Solid Waste that cannot and/or would not typically be accommodated within a Cart or Bin including without limitation: furniture (including chairs, sofas, mattresses, and rugs); appliances (including refrigerators with and without Freon, ranges, washers, dryers, water heaters, dishwashers, plumbing, small household appliances and other similar items, commonly known as “white goods”); residential wastes (including wood waste, tree branches, 6 1645189.1 scrap wood, in the aggregate not exceeding one cubic yard per Collection); and clothing. For purposes of this Agreement, and notwithstanding any provision hereof to the contrary, Bulky Items shall specifically include items commonly known in the waste industry as “brown goods,” “e- waste” and “universal waste” (including, without limitation all types of electronic waste, stereos, televisions, computers and monitors, cellular phones, VCRs, microwaves and other similar type of equipment and products). Bulky Items do not include car bodies, Construction and Demolition Debris, Hazardous Waste, or (with the exception of appliances/white goods described above) items that cannot reasonably and safely be loaded and unloaded into a vehicle by two people using equipment of the type which, pursuant to industry standards, would normally be carried in a vehicle used in Collecting Bulky Items. In the event a question arises as to whether a specific item, or category of items meets the definition of Bulky Items, City shall be responsible to determine whether said definition shall apply, which determination shall be final and binding on the Parties. 2.26 C&D “C&D” means Construction and Demolition Debris. 2.27 C&D Collection Site “C&D Collection Site” means properties where construction and demolition work is performed as evidenced by City issuance of a land clearing, building, or demolition permit, or from a non-permitted municipal project or as otherwise stated in Chapter 8.13 of the Los Alamitos Municipal Code, as the same may be amended from time to time. 2.28 California Code of Regulations (CCR) “California Code of Regulations” or “CCR” means the State of California Code of Regulations. CCR references in this Agreement are preceded with a number that refers to the relevant Title of the CCR (e.g., “14 CCR, Division 7, Chapter 12” refers to Title 14, Division 7, Chapter 12 of the California Code of Regulations. 2.29 CalRecyle “CalRecycle” means California's Department of Resources Recycling and Recovery, which is the Department designated with responsibility for developing, implementing, and enforcing SB 1383 Regulations on Cities and other regulated entities. 2.30 Cart “Cart” means a plastic Container with a hinged lid and wheels serviced by an automated or semi-automated process, as opposed to a manual process of lifting and dumping. 2.31 City “City” shall mean the City of Los Alamitos, a municipal corporation, located in Orange County, California. 2.32 City Council “City Council” shall mean the City Council of City. 7 1645189.1 2.33 City Limits “City Limits” shall mean the territorial boundaries of the City together with all amendments and changes thereto, which boundaries are depicted on maps, incorporated herein by reference, that are kept on file in the office of the City Clerk of the City of Los Alamitos, and which are from time to time amended to reflect changes. 2.34 City Manager “City Manager” shall mean the City Manager of the City of Los Alamitos or his or her designee. 2.35 Collect/Collection/Collecting “Collect,” “Collection,” or “Collecting” shall mean to take physical possession of, transport, and remove Solid Waste from a Premises. 2.36 Collection Vehicle “Collection Vehicle” shall have the meaning ascribed in Section 10 of this Agreement. 2.37 Commercial Business (Commercial) “Commercial Business” or “Commercial” means a firm, partnership, proprietorship, joint- stock company, corporation, or association, whether for-profit or nonprofit, strip mall, or industrial facility, or a Multi-Family residential dwelling, or as otherwise defined in 14 CCR Section 18982(a)(6). A Multi-Family residential dwelling that consists of fewer than five (5) units is not a Commercial Business for purposes of this Agreement. 2.38 Commercial Edible Food Generators “Commercial Edible Food Generators” includes Tier One Commercial Edible Food Generators and Tier Two Commercial Edible Food Generators, or as otherwise defined in 14 CCR Section 18982(a)(7). For the purposes of this definition, Food Recovery Organizations and Food Recovery Services are not Commercial Edible Food Generators, or as otherwise specified by 14 CCR Section 18982(a)(7). 2.39 Community Composting “Community Composting” means any activity that composts green material, agricultural material, food material, and vegetative food material, alone or in combination, and the total amount of feedstock and Compost on-site at any one time does not exceed 100 cubic yards and 750 square feet, as specified in 14 CCR Section 17855(a)(4); or as otherwise defined in 14 CCR Section 18982(a)(8). 2.40 Compostable Plastics “Compostable Plastics” or “Compostable Plastic” means plastic materials that meet the 8 1645189.1 ASTM D6400 standard for compostability, or as otherwise described in 14 CCR Section 18984.1(a)(1)(A) or 18984.2(a)(1)(C). 2.41 Compost “Compost” has the same meaning as in 14 CCR Section 17896.2(a)(4), which states, as of the Effective Date of this Agreement, that “Compost” means the product resulting from the controlled biological decomposition of organic Solid Wastes that are Source Separated from the municipal Solid Waste stream, or which are separated at a centralized Facility. 2.42 Construction and Demolition Debris (C&D) “Construction and Demolition Debris” means the nonhazardous waste building material, Inerts, soil, packaging, Yard Trimmings, rubble, and other used or Discarded Materials resulting from construction or demolition. 2.43 Container(s) “Container(s)” means a receptacle for temporary storage of Discarded Materials. Containers may include Bins, Carts, Roll-Off Boxes, compactors, cans, buckets, bags, or other storage instruments to the extent such Containers are permitted by the City for use for Collection services provided under the Agreement. 2.44 Contractor “Contractor” means the Party (other than the City) that executed this Exclusive Franchise Agreement and its Affiliates, DBAs, and Subcontractors that perform services on Contractor’s behalf. 2.45 “Contractor Self-haul” “Contractor Self-haul” means the act of hauling solid waste by construction and demolition contractors as an ancillary function to their primary business activity. 2.46 Contractor’s Proposal “Contractor’s Proposal” shall mean proposal submitted in response to the City ’s Request for Proposal for Solid Waste Handling Services dated July 15, 2021 and subsequent submittals from Contractor prior to award. 2.47 County Agreement. “County Agreement” shall mean that certain waste disposal agreement entered between various Orange County Cities, including specifically the City of Los Alamitos, and the County of Orange relating to the use of County landfills for the disposal of Solid Waste collected in such Cities, and which is on file in the office of City’s City Clerk, as the same may be amended from time to time. 9 1645189.1 2.48 Customer “Customer” or “Customers” shall mean any Person arranging for and/or receiving Discarded Material Management services from Contractor within the Franchise Area. 2.49 Discarded Materials “Discarded Materials” are a form of Solid Waste, and shall be regulated as such. For purposes of this Agreement, material is deemed to have been discarded, without regard to whether it is destined for Recycling or Disposal, and whether or not is has been separated from other Solid Wastes, in all cases where a fee or other compensation, in any form or amount, is directly or indirectly solicited from, or, levied, charged, or otherwise imposed on, or paid by, the Generator or Customer in exchange for handling services. As used herein, handling services include, without limitation, the Collection, removal, Transportation, delivery, and Processing and/or Disposal of the material. Discarded Materials do not include Edible Food that is recovered for human consumption and is not discarded. For the purposes of this Agreement, Discarded Materials include Source Separated Recyclable Materials, SSBCOW, SSGCOW, Food Waste, Gray Container Waste or Mixed Waste, and C&D once the materials have been placed in Containers for Collection. 2.50 Disposal “Disposal” or “Dispose” means the final disposition of any Solid Waste Collected by the Contractor or Residue from Contractor’s Processing activities at a permitted Landfill or other permitted Solid Waste Facility. 2.51 Diversion “Diversion (or any variation thereof including “Divert”)” means activities which reduce or eliminate Discarded Materials from Disposal, including, but not limited to, source reduction, Reuse, salvage, Recycling, and composting. 2.52 Dual Stream (or Dual-Stream) “Dual Stream” or “Dual-Stream” means a Collection method in which the Generators are instructed to separate Source Separated Recyclable Materials (such as, but not limited to, SSBCOW and Non-Organic Recyclables) or SSGCOW (such as, but not limited to, Yard Trimmings and Food Waste) into two streams of materials for placement in two sections of a Split Container or into two different Containers, and in which the Contractor maintains the separation of the two streams during Collection and Processes each stream separately. 2.53 Edible Food “Edible Food” means food intended for human consumption. For the purposes of this Agreement, Edible Food is not Solid Waste if it is recovered and not discarded. Nothing in this Agreement requires or authorizes the recovery of Edible Food that does not meet the food safety requirements of the California Retail Food Code. If the definition in 14 CCR Section 18982(a)(18) for Edible Food differs from this definition, the definition in 14 CCR Section 18982(a)(18) shall apply to this Agreement. 10 1645189.1 2.54 Effective Date “Effective Date” means the date on which the Agreement becomes binding upon the Parties, which is the date when the latter of the Parties has executed this Agreement. 2.55 Environmental Laws “Environmental Laws” means all federal and State statutes and City ordinances concerning public health, safety, and the environment including, by way of example and not limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 USC Section 9601, et seq.; the Resource Conservation and Recovery Act, 42 USC Section 6901, et seq.; the Federal Clean Water Act, 33 USC Section 1251, et seq.; the Toxic Substance Control Act, 15 USC Section 2601, et seq.; the Occupational Safety and Health Act, 29 USC Section 651, et seq.; the California Hazardous Waste Control Act, California Health and Safety Code Section 25100, et seq.; the Carpenter-Presley-Tanner Hazardous Substance Account Act, California Health and Safety Code Section 25300, et seq.; the Porter-Cologne Water Quality Control Act, California Water Code Section 13000, et seq.; the Safe Drinking Water and Toxic Enforcement Act of 1986, California Health and Safety Code Section 25249.5, et seq.; all as currently in force or as hereafter amended, and all rules and regulations promulgated thereunder. 2.56 Excluded Waste “Excluded Waste” means Hazardous Substance, Hazardous Waste, Infectious Waste, Designated Waste, volatile, corrosive, Medical Waste, infectious, regulated radioactive waste, and toxic substances or material that Approved Facility operator(s) reasonably believe(s) would, as a result of or upon acceptance, Transfer, Processing, or Disposal, be a violation of local, State, or Federal law, regulation, or ordinance, including: land use restrictions or conditions, waste that cannot be Disposed of in Class III Landfills or accepted at the Facility by permit conditions, waste that in Contractor’s reasonable opinion would present a significant risk to human health or the environment, cause a nuisance or otherwise create or expose Contractor or City to potential liability; but not including de minimis volumes or concentrations of waste of a type and amount normally found in Single-Family or Multi-Family Solid Waste after implementation of programs for the safe Collection, Processing, Recycling, treatment, and Disposal of batteries and paint in compliance with Sections 41500 and 41802 of the California Public Resources Code. Excluded Waste does not include used motor oil and filters, household batteries, Universal Wastes, and/or latex paint when such materials are defined as allowable materials for Collection through this Agreement and the Generator or Customer has properly placed the materials for Collection pursuant to instructions provided by City or Contractor as set forth in this Agreement. 2.57 Facility(ies) “Facility(ies)” means any plant, site, or operation used for the purpose of handling Discarded Materials, including, but not limited to, Disposal, Transfer, Recycling, composting, and processing facilities or operations. 2.58 Food Recovery “Food Recovery” means actions to collect and distribute food for human consumption 11 1645189.1 which otherwise would be disposed, or as otherwise defined in 14 CCR Section 18982(a)(24). 2.59 Food Recovery Organization “Food Recovery Organization” means an entity that primarily engages in the collection or receipt of Edible Food from Commercial Edible Food Generators and distributes that Edible Food to the public for Food Recovery either directly or through other entities, including, but not limited to: A. A food bank as defined in Section 113783 of the Health and Safety Code; B. A nonprofit charitable organization as defined in Section 113841 of the Health and Safety code; and, C. A nonprofit charitable temporary food facility as defined in Section 113842 of the Health and Safety Code. If the definition in 14 CCR Section 18982(a)(25) for Food Recovery Organization differs from this definition, the definition in 14 CCR Section 18982(a)(25) shall apply to this Agreement. 2.60 Food Recovery Service “Food Recovery Service” means a Person or entity that collects and transports Edible Food from a Commercial Edible Food Generator to a Food Recovery Organization or other entities for Food Recovery; or as otherwise defined in 14 CCR Section 18982(a)(26). 2.61 Food Scraps “Food Scraps” means all food such as, but not limited to, fruits, vegetables, meat, poultry, seafood, shellfish, bones, rice, beans, pasta, bread, cheese, and eggshells. Food Scraps excludes fats, oils, and grease when such materials are Source Separated from other Food Scraps. 2.62 Food-Soiled Paper “Food-Soiled Paper” means compostable paper material that has come in contact with food or liquid, such as, but not limited to, compostable paper plates, paper coffee cups, napkins, pizza boxes, and milk cartons. 2.63 Food Waste “Food Waste” means Source Separated Food Scraps and Food-Soiled Paper. Food Waste is a subset of SSGCOW. Edible Food separated for Food Recovery shall not be considered Food Waste. 2.64 Franchise Area “Franchise Area” shall mean all Premises within the City Limits, including Premises which may be annexed and thereby added to the City Limits following the Effective Date. 12 1645189.1 2.65 Franchise Fee “Franchise Fee” shall mean the franchise fee set forth and more fully defined in Section 12.3 hereof. 2.66 Generator “Generator” means any Person whose act first causes Discarded Materials to become subject to regulation under the Municipal Code or under federal, State, or local regulations. 2.67 Gray Container “Gray Container” has the same meaning as in 14 CCR Section 18982(a)(28) and shall be used for the purpose of storage and Collection of Non-Recyclable Waste or Mixed Waste including Food Waste. 2.68 Green Container “Green Container” has the same meaning as in 14 CCR Section 18982(a)(29) and shall be used for the purpose of storage and Collection of Yard Trimmings and Wood waste. 2.69 Gross Receipts “Gross Receipts” shall mean and include all monies, fees, charges, consideration, and revenue received by or imputed to Contractor and any Affiliate of Contractor, in connection with, arising from, or in any way attributable to the Solid Waste Handling Services carried out by or on behalf of Contractor pursuant to this Agreement. Gross Receipts includes, without limitation, monthly or quarterly Customer charges that are received by Contractor for Collection of Solid Waste, without subtracting Franchise Fees, fees imposed and collected pursuant to this Agreement, sums collected in connection with Temporary Services, and transportation charges. Gross Receipts does not include revenue from the sale of Recyclable Material, Green Waste, food waste, and other material which is diverted from disposal. 2.70 Hauler Route “Hauler Route” means the designated itinerary or sequence of stops for each segment of the City ’s Collection service area, or as otherwise defined in 14 CCR Section 18982(a)(31.5). 2.71 Hazardous Substance “Hazardous Substance” shall mean any of the following: A. Any substance defined, regulated or listed (directly or by reference) as “hazardous substances”, “hazardous materials”, “hazardous wastes”, “toxic waste”, “pollutant” or “toxic substances” or similarly identified as hazardous to human health or the environment, in or pursuant to (i) the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 USC Section 9601, et seq.; (ii) the Hazardous Materials Transportation Act, 49 USC Section 5101, et seq.; (iii) the Resource Conservation and 13 1645189.1 Recovery Act, 42 USC Section 6901, et seq.; (iv) the Clean Water Act, 33 USC Section 1251, et seq.; (v) California Health and Safety Code Sections 25115-25117, 25249.8, 25281, and 25316; (vi) the Clean Air Act, 42 USC Section 7401, et seq.; and (vi) California Water Code Section 13050; (b) any amendments, rules, or regulations promulgated thereunder to such enumerated statutes or acts currently existing or hereinafter enacted; and (c) any other hazardous or toxic substance, material, chemical, waste, or pollutant identified as hazardous or toxic or regulated under any other applicable federal, State, and local environmental laws currently existing or hereinafter enacted, including without limitation, friable asbestos, polychlorinated biphenyl (“PCBs”), petroleum, natural gas and synthetic fuel products, and by-products. 2.72 Hazardous Waste "Hazardous Waste" or “Hazardous Wastes” means any waste which meets the definitions set forth in 22 CCR Section 66261.3, et seq. and is required to be managed; or as otherwise defined in 14 CCR Section 17402(a)(7). Hazardous Waste includes hazardous wood waste, which means wood that falls within the definition of “treated wood” or “treated wood waste” in 22 CCR Section 67386.4, or as otherwise defined in 14 CCR Section 18982(a)(30.5). 2.73 High Diversion Organic Waste Processing Facility “High Diversion Organic Waste Processing Facility” means a High Diversion Organic Waste Processing Facility as defined in 14 CCR Section 18982(a)(33). 2.74 Inerts “Inerts” means materials such as concrete, soil, asphalt, and ceramics. 2.75 City Contract Manager City Contract Manager means the City Manager or their designee. 2.76 Landfill “Landfill” means a “Solid Waste Landfill” defined by Public Resources Code Section 40195.1. 2.77 Large Event “Large Event” means an event, including, but not limited to, a sporting event or a flea market, that charges an admission price, or is operated by a local agency, and serves an average of more than 2,000 individuals per day of operation of the event, at a location that includes, but is not limited to, a public, nonprofit, or privately-owned park, parking lot, golf course, street system, or other open space when being used for an event. If the definition in 14 CCR Section 18982(a)(38) differs from this definition, the definition in 14 CCR Section 18982(a)(38) shall apply to this Agreement. 2.78 Large Venue 14 1645189.1 “Large Venue” means a permanent venue facility that annually seats or serves an average of more than 2,000 individuals within the grounds of the facility per day of operation of the venue facility. For purposes of 14 CCR, Division 7, Chapter 12 and this Agreement, a venue facility includes, but is not limited to, a public, nonprofit, or privately owned or operated stadium, amphitheater, arena, hall, amusement park, conference or civic center, zoo, aquarium, airport, racetrack, horse track, performing arts center, fairground, museum, theater, or other public attraction facility. For purposes of 14 CCR, Division 7, Chapter 12 and this Agreement, a site under common ownership or control that includes more than one Large Venue that is contiguous with other Large Venues in the site, is a single Large Venue. If the definition in 14 CCR Section 18982(a)(39) differs from this definition, the definition in 14 CCR Section 18982(a)(39) shall apply to this Agreement. 2.79 Liquidated Damages “Liquidated Damages” means the amounts due by Contractor for failure to meet specific quantifiable standards of performance as described in Section 18.7. 2.80 Medical Waste “Medical Waste” means any Solid Waste that is generated or has been used in the diagnosis, treatment, or immunization of human beings or animals, or research pertaining thereto, and shall include, but not be limited to, biomedical, biohazardous and medical waste, or other Solid Waste resulting from medical activities or services as defined by the Municipal Code or any State or federal law or regulation, all as currently enacted or subsequently amended. 2.81 Mixed Waste “Mixed Waste” means Mixed Waste Organic Collection Stream and Solid Waste Collected in a Container that is required by 14 CCR Sections 18984.1, 18984.2, or 18984.3 to be Transported to a High Diversion Organic Waste Processing Facility. 2.82 Mixed Waste Organic Collection Stream “Mixed Waste Organic Waste Collection Stream” means Organic Waste Collected in a Container that is required by 14 CCR Sections 18984.1, 18984.2, or 18984.3 to be Transported to a High Diversion Organic Waste Processing Facility, or as otherwise defined in 14 CCR Section 17402(a)(11.5). 2.83 Mulch “Mulch” means a layer of material applied on top of soil, and, for the purposes of the Agreement, Mulch shall conform with the following conditions, or conditions as otherwise specified in 14 CCR Section 18993.1(f)(4): A. Meets or exceeds the physical contamination, maximum metal concentration, and pathogen density standards for land application specified in 14 CCR Section 17852(a)(24.5)(A)(1) through (3). 15 1645189.1 B. Was produced at one or more of the following types of Facilities: 1. A compostable material handling operation or facility as defined in 14 CCR Section 17852(a)(12), that is permitted or authorized under 14 CCR, Division 7, other than a chipping and grinding operation or facility as defined in 14 CCR Section 17852(a)(10); 2. A Transfer/Processing Facility or Transfer/Processing operation as defined in 14 CCR Section 17402(a)(30) and (31), respectively, that is permitted or authorized under 14 CCR, Division 7; or, 3. A Solid Waste Landfill as defined in PRC Section 40195.1 that is permitted under 27 CCR, Division 2. 2.84 Multi-Family or Multi-Family Dwelling Unit “Multi-Family” means of, from, or pertaining to residential Premises with two or more dwelling units attached or detached on a site or lot, which does not include an accessory dwelling unit. Multi-Family Premises do not include hotels, motels, or other transient occupancy facilities, which are considered Commercial Businesses. References to “Multi-Family Dwelling Unit” refer to an individual residential unit of the Multi-Family Premises. 2.85 Municipal Code “Municipal Code” shall mean City’s Municipal Code (“Los Alamitos Municipal Code”). 2.86 Non-Compostable Paper “Non-Compostable Paper” includes, but is not limited to, paper that is coated in a plastic material that will not breakdown in the composting process, or as otherwise defined in 14 CCR Section 18982(a)(41). 2.87 Non-Organic Recyclables “Non-Organic Recyclables” means non-putrescible and non-hazardous recyclable wastes including, but not limited to, bottles, cans, metals, plastics, and glass, or as otherwise defined in 14 CCR Section 18982(a)(43). Non-Organic Recyclables are a subset of Source Separated Recyclable Materials. 2.88 Organic Waste “Organic Waste” means Solid Wastes containing material originated from living organisms and their metabolic waste products including, but not limited to, food, Yard Trimmings, organic textiles and carpets, lumber, wood, Paper Products, Printing and Writing Paper, manure, biosolids, digestate, and sludges, or as otherwise defined in 14 CCR Section 18982(a)(46). Biosolids and digestate are as defined in 14 CCR Section 18982(a)(4) and 14 CCR Section 18982(a)(16.5), respectively. 2.89 Paper Products 16 1645189.1 “Paper Products” include, but are not limited to, paper janitorial supplies, cartons, wrapping, packaging, file folders, hanging files, corrugated boxes, tissue, and toweling; or as otherwise defined in 14 CCR Section 18982(a)(51). 2.90 Parent Company “Parent Company” means a company that has a controlling interest in another company, enabling the Parent Company to control management and operations of the Affiliate or Subsidiary company. 2.91 Party or Parties “Party” or “Parties” refers to the City and Contractor, individually or together. 2.92 Person “Person” has the same meaning as in Public Resources Code Section 40170, which states, as of the Effective Date of this Agreement, that a Person includes an individual, firm, limited liability company, association, partnership, political subdivision, government agency, municipality, industry, public or private corporation, or any other entity whatsoever. 2.93 Premises “Premises” means a tract of land with or without habitable buildings or appurtenant structures. 2.94 Printing and Writing Papers “Printing and Writing Papers” include, but are not limited to, copy, xerographic, watermark, cotton fiber, offset, forms, computer printout paper, white wove envelopes, manila envelopes, book paper, note pads, writing tablets, newsprint, and other uncoated writing papers, posters, index cards, calendars, brochures, reports, magazines, and publications; or as otherwise defined in 14 CCR Section 18982(a)(54). 2.95 Process, Processed, or Processing “Processing” means the controlled separation, recovery, volume reduction, conversion, or Recycling of Solid Waste including, but not limited to, organized, manual, automated, or mechanical sorting, the use of vehicles for spreading of waste for the purpose of recovery, and/or includes the use of conveyor belts, sorting lines, or volume reduction equipment, or as otherwise defined in 14 CCR Section 17402(a)(20). 2.96 Prohibited Container Contaminants Three-Container Collection service (Blue, Green, and Gray Containers) “Prohibited Container Contaminants” means the following: A. Discarded Materials placed in the Blue Container that are not identified as acceptable Source Separated Recyclable Materials for the City ’s Blue Container; 17 1645189.1 B. Discarded Materials placed in the Green Container that are not identified as acceptable for the City ’s Green Container; C. Discarded Materials placed in the Gray Container that are designated to be placed in City ’s Green Container and/or Blue Container ; and D. Excluded Waste placed in any Container. Two-Container Collection Service for Source Separated Recyclable Materials and Mixed Waste (Blue and Gray Containers) “Prohibited Container Contaminants” means the following: A. Discarded Materials placed in the Blue Container that are not identified as acceptable Source Separated Recyclable Materials for City ’s Blue Container; B. Discarded Materials placed in the Gray Container that are identified as acceptable Source Separated Recyclable Materials, which are to be separately Collected in City ’s Blue Container; and, C. Excluded Waste placed in any Container. 2.97 Property Owner “Property Owner” means the owner of real property, or as otherwise defined in 14 CCR Section 18982(a)(57). 2.98 Public Resources Code (PRC) “Public Resources Code” or “PRC” means the California Public Resources Code. 2.99 Putrescible Waste “Putrescible Waste” means wastes that are capable of being decomposed by micro- organisms with sufficient rapidity as to cause nuisances because of odors, gases, or other offensive conditions, and includes materials such as, but not limited to Food Waste, offal, and dead animals; or as otherwise defined in 14 CCR Section 17402(a)(21). 2.100 Rate “Rate” means the amount, expressed as a dollar unit, that Contractor bills a Customer for providingspecified services under this Agreement. The Rate shall be mutually agreed-upon by Contractor and Customer. 2.101 Rate Period “Rate Period” means a twelve (12) month period, commencing July 1 and concluding June 30. 2.102 Recycle/Recycling 18 1645189.1 “Recycle” or “Recycling” means the process of Collecting, sorting, cleansing, treating, and reconfiguring materials for the purpose of returning them to the economic mainstream in the form of raw material for new, Reused, or reconstituted products that meet the quality standards necessary to be used in the marketplace. Recycling includes processes deemed to constitute a reduction of Landfill Disposal pursuant to 14 CCR, Division 7, Chapter 12, Article 2. Recycling does not include gasification or transformation as defined in Public Resources Code Section 40201. 2.103 Remnant Organic Material “Remnant Organic Material” means the Organic Waste that is Collected in a Gray Container that is part of the Gray Container Collection stream, or as otherwise defined in 14 CCR 17402(a)(23.5). 2.104 Renewable Natural Gas (RNG) “Renewable Natural Gas” or “RNG” means gas derived from Organic Waste that has been diverted from a Landfill and Processed at an in-vessel digestion facility that is permitted or otherwise authorized by 14 CCR to recover Organic Waste, or as otherwise defined in 14 CCR Section 18982(a)(62). 2.105 Residual (or Residue) “Residual” or “Residue” means the Solid Waste destined for Disposal, further transfer/processing as defined in 14 CCR Section 17402(a)(30) or 14 CCR Section 17402(a)(31), or transformation which remains after Processing has taken place and is calculated in percent as the weight of Residual divided by the total incoming weight of materials. 2.106 Responsible Customer “Responsible Customer” means the Customer who is responsible for making arrangements with Contractor to ensure Collection services are provided at Commercial Premises or Residential Premises in circumstances where a management company, homeowner association, or similar type entity arranges Collection services for such Premises. In the event of any dispute as to whether a right or obligation set forth herein is held by a Customer or a Responsible Customer, the City Manager is authorized to resolve such dispute in a manner that he determines best implements the intent of this Agreement. 2.107 Reusable Items “Reusable Items” means items that are capable of being Reused after minimal Processing. Reusable Items may be Collected Source Separated or recovered through a Processing Facility. Reusable Items may include, but are not limited to, clothing, furniture, and/or sporting equipment. 2.108 Reuse “Reuse” or any variation thereof, means the use, in the same, or similar, form as it was produced, of a material which might otherwise be discarded, or as otherwise defined in 14 CCR 19 1645189.1 Section 17402.5(b)(2). 2.109 Roll-Off Box “Roll-Off Box” means an open- or closed-top metal Container, roll-top Container, or closed compactor Container serviced by a roll-off truck and with a Container capacity of 10 to 50 cubic yards. Roll-off boxes are also known as drop boxes or debris boxes. 2.110 Salvageable Material (or Salvaged Material) “Salvageable Material” or “Salvaged Material” means an object or material that results from salvaging, where salvaging means the controlled separation of Solid Waste material which do not require further processing for Reuse or Recycling prior to Transfer activities, or as otherwise defined in 14 CCR Section 17402(a)(24). 2.111 SB 1383 “SB 1383” means Senate Bill 1383 of 2016 approved by the Governor on September 19, 2016, which added Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the Health and Safety Code, and added Chapter 13.1 (commencing with Section 42652) to Part 3 of Division 30 of the Public Resources Code, establishing methane emissions reduction targets in a statewide effort to reduce emissions of short-lived climate pollutants as amended, supplemented, superseded, and replaced from time to time. 2.112 SB 1383 Regulations “SB 138 Regulations” or “SB 1383 Regulatory” refers to the Short-Lived Climate Pollutants (SLCP): Organic Waste Reductions regulations developed by CalRecycle and adopted in 2020 that created Chapter 12 of 14 CCR, Division 7 and amended portions of regulations of 14 CCR and 27 CCR. 2.113 Self-Hauler (or Self-Haul) “Self-Hauler” or “Self-Haul” means a Person who hauls Solid Waste, Organic Waste, or recovered material they have generated to another Person, or as otherwise defined in 14 CCR Section 18982(a)(66). Self-Hauler also includes a Person who Back-Hauls waste. 2.114 Service Level “Service Level” refers to the number and size of a Customer’s Container(s) and the frequency of Collection service, as well as ancillary services such as lock/unlock service, Container push/pull service, etc. 2.115 Single-Family or Single-Family Dwelling (SFD) “Single-Family” or “Single-Family Dwelling” or “SFD” means any residential Premises with less than two (2) units, not including an accessory dwelling unit. 20 1645189.1 2.116 Solid Waste “Solid Waste” has the same meaning as defined in PRC Section 40191, which defines Solid Waste as all putrescible and nonputrescible solid, semisolid, and liquid wastes, including garbage, trash, refuse, paper, rubbish, ashes, industrial wastes, demolition and construction wastes, abandoned vehicles and parts thereof, discarded home and industrial appliances, dewatered, treated, or chemically fixed sewage sludge which is not hazardous waste, manure, vegetable or animal solid and semisolid wastes, and other discarded solid and semisolid wastes, with the exception that Solid Waste does not include any of the following wastes: (1) Hazardous waste, as defined in PRC Section 40141. (2) Radioactive waste regulated pursuant to the Radiation Control Law (Chapter8 (commencing with Section 114960) of Part 9 of Division 104 of the Health and Safety Code). (3) Medical waste regulated pursuant to the Medical Waste Management Act (Part 14, commencing with Section 117600, of Division 104 of the Health and Safety Code). Untreated medical waste shall not be disposed of in a solid waste Landfill, as defined in PRC Section 40195.1. Medical waste that has been treated and deemed to be Solid Waste shall be regulated pursuant to PRC, Division 30. 2.117 Source Separated “Source Separated” means materials, including commingled Recyclable materials, that have been separated or kept separate from the Solid Waste stream, at the point of generation, for the purpose of additional sorting or Processing those materials for Recycling or Reuse in order to return them to the economic mainstream in the form of raw material for new, reused, or reconstituted products which meet the quality standards necessary to be used in the marketplace, or as otherwise defined in 14 CCR Section 17402.5(b)(4). For the purposes of the Agreement, Source Separated shall include separation of materials by the Generator, Property Owner, Property Owner’s employee, property manager, or property manager’s employee into different Containers for the purpose of Collection such that Source Separated materials are separated from Gray Container Waste or Mixed Waste and other Solid Waste for the purposes of Collection and Processing. 2.118 Source Separated Blue Container Organic Waste (SSBCOW) “Source Separated Blue Container Organic Waste” or “SSBCOW” means Source Separated Organic Waste that can be placed in a Blue Container that is limited to the Collection of those Organic Wastes and Non-Organic Recyclables as defined in 14 CCR Section 18982(a)(43); or as otherwise defined by 14 CCR Section 17402(a)(26.7). The accepted types of SSBCOW and process for modifying the accepted types of SSBCOW are specified in Section 8. 2.119 Source Separated Green Container Organic Waste (SSGCOW) “Source Separated Green Container Organic Waste” or “SSGCOW” means Source Separated Organic Waste that can be placed in a Green Container that is specifically intended for 21 1645189.1 the separate Collection of Organic Waste by the Generator, excluding SSBCOW, carpets, Non- Compostable Paper, and textiles. The accepted types of SSGCOW and process for modifying the accepted types of SSGCOW are specified in Section 8. SSGCOW is a subset of Organic Waste. 2.120 Source Separated Recyclable Materials “Source Separated Recyclable Materials” means Source Separated Non-Organic Recyclables and SSBCOW. The accepted types of Source Separated Recyclable Materials and process for modifying the accepted types of Source Separated Recyclable Materials are specified in Section 8. 2.121 State “State” means the State of California. 2.122 Subcontractor “Subcontractor” means any Person, firm, or entity hired by Contractor to carry out any of Contractor’s duties under this Agreement. 2.123 Subsidiary “Subsidiary” means an Affiliate with fifty percent (50%) or more of its ownership controlled by Contractor. 2.124 Temporary Service “Temporary Service” shall mean Solid Waste Handling Services provided by Contractor on an as-needed and temporary basis to any Premises within the City in conjunction with construction, demolition, cleanup or other projects, and by use of temporarily placed Bins or Roll off Boxes. 2.125 Term “Term” means the duration of this Agreement, including extension periods if granted, as provided for in Section 6. 2.126 Tier One Commercial Edible Food Generators “Tier One Commercial Edible Food Generator” means a Commercial Edible Food Generator that is one of the following, each as defined in 14 CCR Section 18982: A. Supermarket. B. Grocery Store with a total facility size equal to or greater than 10,000 square feet. C. Food Service Provider. 22 1645189.1 D. Food Distributor. E. Wholesale Food Vendor. If the definition in 14 CCR Section 18982(a)(73) of Tier One Commercial Edible Food Generator differs from this definition, the definition in 14 CCR Section 18982(a)(73) shall apply to this Agreement. 2.127 Tier Two Commercial Edible Food Generators “Tier Two Commercial Edible Food Generator” means a Commercial Edible Food Generator that is one of the following, each as defined in 14 CCR Section 18982: A. Restaurant with 250 or more seats, or a total facility size equal to or greater than 5,000 square feet. B. Hotel with an on-site food facility and 200 or more rooms. C. Health facility with an on-site food facility and 100 or more beds. D. Large Venue. E. Large Event. F. A State agency with a cafeteria with 250 or more seats or total cafeteria facility size equal to or greater than 5,000 square feet. G. A local education agency with an on-site food facility. If the definition in 14 CCR Section 18982(a)(74) of Tier Two Commercial Edible Food Generator differs from this definition, the definition in 14 CCR Section 18982(a)(74) shall apply to this Agreement. 2.128 Ton “Ton” or “Tonnage” or “Tons” means a unit of weight equal to 2,000 pounds (907.18474 kg). 2.129 Transfer “Transfer” means the act of transferring Discarded Materials Collected by Contractor from Contractor’s Collection vehicles into larger vehicles at a Transfer Facility for Transport to other Facilities for Processing or Disposing of such materials. Transfer allows for removal of materials excluded or prohibited from handling at the Transfer Facility (e.g., removal of Hazardous Waste). 2.130 Transformation “Transformation” means incineration, pyrolysis, distillation, gasification, or biological conversion other than composting. “Transformation” does not include composting. 23 1645189.1 2.131 Transportation or Transport “Transportation” or “Transport” means the act of conveying Collected materials from one location to another. 2.132 Universal Waste (or U-Waste) “Universal Waste” or “U-Waste” means all wastes defined by 22 CCR Subsections 66273.1 through 66273.9. These include, but are not limited to, batteries, fluorescent light bulbs, mercury switches, and electronic waste. 2.133 Work Days “Work Days” or “Working Days” means days on which the Contractor is required to provide regularly scheduled Collection services under this Agreement. 2.134 Yard Trimmings “Yard Trimmings” means types of SSGCOW resulting from normal yard and landscaping installation, maintenance, or removal that the Generators Source Separate and set out in Green Containers for Collection for the purpose of Processing by the Contractor. SECTION 3. GRANT OF EXCLUSIVE FRANCHISE FOR SOLID WASTE HANDLING SERVICES FROM ALL RESIDENTIAL AND COMMERCIAL PREMISES, AND FOR PROVIDING TEMPORARY SOLID WASTE HANDLING SERVICE 3.1 Scope of Franchise Except as hereinafter expressly set forth, City hereby grants to Contractor and Contractor hereby accepts from City, for the Term hereof, the exclusive contract, right, and privilege to Collect, transport, and dispose of all Solid Waste generated or accumulated within the Franchise Area. The exclusive franchise, right and privilege to provide Solid Waste Handling Services within City granted to Contractor by this Agreement shall be interpreted to be consistent with all applicable state and federal laws, now in effect and adopted during the Term of this Agreement, and the scope of this Agreement shall be limited by all applicable current and developing laws and regulations. In the event that future interpretations of current law or future enactments limit the ability of City to lawfully grant Contractor the scope of services as specifically set forth herein, Contractor agrees that the scope of this Agreement will be limited to those services and materials which may be lawfully provided, and that City shall not be responsible for any lost profits claimed by Contractor as a result thereof. 3.2 Matters Excluded from Scope of Franchise Notwithstanding any other provisions set forth in this Agreement to the contrary, the exclusive franchise granted herein shall exclude the Collection, transportation, recycling, and disposal of: 24 1645189.1 A. Any Solid Waste otherwise within the scope of this Agreement which is transported by a Self-Hauler as that term is used in the Municipal Code, or any other City ordinance, resolution, regulation or policy, as such may be adopted or amended from time to time; B. Any Solid Waste otherwise within the scope of this Agreement during a locally proclaimed emergency (defined as a “local emergency” pursuant to Section 8630 of the California Emergency Services Act) or subsequent recovery period, provided that Contractor lacks the ability to perform the necessary work in a timely manner, or for any other reason determined by City related to public health, safety or welfare; C. The sale, donation, or transfer Recyclable Material by the person or entity that generated such Recyclable Material (the “Generator”) to any person or entity other than Contractor; provided, however, to the extent permitted by law, if the Generator is required to pay monetary or non-monetary consideration for the Collection, transportation, transfer, or processing of Recyclable Material to any person or entity other than Contractor, the fact that the Generator receives a reduction or discount in price (or in other terms of the consideration the Generator is required to pay) shall not be considered a sale or donation; D. Any Solid Waste otherwise within the scope of this Agreement which is Collected or transported to a disposal or recycling facility by City agents or employees in the course and scope of services provided for the City; E. Any Solid Waste Collected at any City sponsored event if City does not request Contractor provide Collection services for the City sponsored event; F. The Collection, transportation, or disposal of Hazardous Waste; universal waste; E-Waste; biohazardous waste; untreated medical waste; infectious waste; Animal Waste; used cooking fats, oils, grease and similar waste; or other materials which do not constitute Solid Waste; G. The Collection, transportation, and disposal of Construction and Demolition Waste by a contractor, handyman, repairman, or other similar service provider, using its own equipment, as an incidental part of the services provided to its Customers, rather than as a hauling service, provided that such waste is not Collected or transported by a third party hired for the primary purpose of Collecting and transporting said materials; H. The Collection, transportation, and disposal of Green Waste, including, but not limited to Green Waste and related Solid Waste by a gardener, or landscaper, as an incidental part of the gardening or landscaping services provided to its customers, rather than as a hauling service provided that such Solid Waste is not collected or transported by a third party hired for the primary purpose of Collecting and transporting said materials; and I. Solid Waste Handling Services provided by any Person having a legal right to continue doing so, pursuant to Public Resources Code Section 49520, et. seq., or otherwise, as long as and to the extent such legal right continues to exist; except that to the degree any territory in which Contractor has a franchise granted by another governmental entity is annexed into City during the Term, Contractor agrees the provisions of this Agreement 25 1645189.1 shall apply to such territory and further acknowledges that this Agreement constitutes any notice required by the Public Resources Code in connection therewith. J. Edible Food. Edible Food that is collected from a Generator by other Person(s), such as a Person from a Food Recovery Organization or Food Recovery Service, for the purposes of Food Recovery; or that is transported by the Generator to another location(s), such as the location of a Food Recovery Organization, for the purposes of Food Recovery, regardless of whether the Generator donates, sells, or pays a fee to the other Person(s) to collect or receive the Edible Food from the Generator. K. Food and Beverage Byproducts. The hauling of byproducts from the processing of food or beverages and use of such material as animal feed if the byproducts originate from agricultural or industrial sources, do not include animal (including fish) processing byproducts, are Source Separated by the Generator of the byproducts, and are not discarded; and, if the use as animal feed is in accordance with 14 CCR Section 18983.1(b)(7). L. On-Site or Community Composting. Organic Waste that is composted or otherwise legally managed at the site where it is generated or at a Community Composting site. M. Contractor Self haul. The hauling of solid waste by construction and demolition contractors with their own equipment as an ancillary function to their primary business activity. SECTION 4. ENFORCEMENT OF EXCLUSIVITY Contractor shall be responsible for enforcing the exclusivity of this Agreement. City shall reasonably assist Contractor in its efforts to enforce the exclusivity hereof. In addition, City shall adopt such ordinances or other regulations as it deems to be necessary or desirable to protect the exclusive rights granted herein. City shall have the right, but not the obligation, to enforce the exclusivity hereof, including by instituting appropriate legal proceedings, and/or to request that Contractor do so. Contractor shall have an affirmative obligation to enforce such exclusivity provisions when requested to do so by City. Contractor shall reimburse City for its reasonable legal costs, administrative costs (including staff time), or other expenses incurred in connection with City’s actions to either enforce the exclusivity hereof, or to assist Contractor in doing so. SECTION 5. ACCEPTANCE; WAIVER Contractor agrees to be bound by and comply with all the requirements of this Agreement. Contractor waives Contractor’s right to challenge the terms of this Agreement under federal, state, or local law, or administrative regulation. Contractor waives any right or claim to serve the City or any part of the City under any prior grant of franchise, contract, license, or permit issued or granted by any governmental entity including any right under Section 49520 of the Public Resources Code. SECTION 6. TERM The term of this Agreement (the “Term”) shall be for an approximate period of seven (7) 26 1645189.1 years commencing on the Effective Date, with an option to extend the Agreement exercisable by the City on the same terms and conditions for up to three (3) additional years (ten years total). The Solid Waste Collection services provided to Customers shall commence on January 1, 2022 (“Service Commencement Date”). The Term of this Agreement shall end at midnight on December 31, 2029, unless earlier terminated or unless the City provides written notice to Contractor on or before July 1, 2028 that it desires to exercise its option to extend the Term. The decision to exercise said option shall be subject to the City Council’s sole, absolute and unfettered discretion. Prior to exercising its extension option, the City Council may, at its discretion, require the City Manager to conduct a performance review during the preceding fiscal year after receiving an advance deposit from Contractor to cover the cost of such review, in an amount subject to the City Manager’s reasonable determination, and said performance review will be separate from and in addition to the performance review set forth in Section 17. This performance review may include, but is not limited to, an assessment of opportunities for Contractor to reduce vehicle miles traveled based on data acquired by Contractor pursuant to Section 10, as well as an assessment of the greenhouse gas emissions generated by Contractor during Contractor’s performance of this Agreement. SECTION 7. CONDITIONS TO EFFECTIVENESS OF AGREEMENT The satisfaction of each and all of the conditions set out below, each of which may be waived in whole or in part by City in writing, is a condition precedent to the effectiveness of this Agreement, and a condition of Contractor’s continued right to the benefits conveyed herein: 7.1 Accuracy of Representation All representations and warranties made by Contractor and set forth in this Agreement shall be accurate, true, and correct on and as of the Effective Date of this Agreement. 7.2 Absence of Litigation There shall be no litigation pending in any court challenging the award of this Agreement to Contractor or the execution of this Agreement or seeking to restrain or enjoin its performance. 7.3 Furnishing of Insurance and Bonds, Letter of Credits, or Asset Pledge Contractor shall have furnished evidence of the insurance and sureties required by Sections 14 and 15 hereof, and shall comply with all ongoing requirements relating thereto. 7.4 Effectiveness of City Council Action The City Council’s action approving this Agreement shall have become effective pursuant to California law. 7.5 Payment of Fees and Costs Contractor shall have made payment to City of all fees, costs and other payments due as more fully set forth in Section 12. 27 1645189.1 SECTION 8. SOLID WASTE HANDLING SERVICES PROVIDED BY CONTRACTOR 8.1 General A. Overall Performance Obligations. The scope of services to be performed by Contractor pursuant to this Agreement shall include the furnishing of all labor, supervision, equipment, materials, supplies, and all other items necessary to perform all requirements of the Agreement. The enumeration of, and specification of requirements for, particular items of labor or equipment shall not relieve the Contractor of the duty to furnish all others, as may be required, whether enumerated or not. The scope of services to be performed by Contractor pursuant to this Agreement shall be accomplished in a manner so that Customers are provided reliable, courteous, and high-quality Collection services and other services described in this Agreement at all times. The enumeration of, and specification of requirements for, particular aspects of service quality shall not relieve Contractor of the duty of accomplishing all other aspects in the manner generally provided in this Section for the delivery of services, whether such other aspects are enumerated elsewhere in the Agreement or not. Contractor shall not knowingly Collect Blue, Green, Brown, or Gray Containers that include Prohibited Container Contaminants. B. Ownership of Discarded Materials. By operation of this Agreement, ownership and the right to possession of all Discarded Materials shall be transferred to Contractor from the Person discarding the materials (Customer and/or Generator) once such materials are placed in Containers and properly placed for Collection. If Prohibited Container Contaminants are found in Containers set out for Collection, the materials shall be considered not properly placed for Collection, and Contractor shall have the right to reject Collection of the contaminated Containers pursuant to Section 9.3 and the ownership of materials shall remain with the Person discarding the materials (Customer and/or Generator). Except as required in the City ’s sole discretion for law enforcement purposes, at no time shall the City obtain any right of ownership or possession of Discarded Materials placed for collection and nothing in this Agreement shall be construed as giving rise to any inference that City has such rights. Refer to Section 9.1 for transfer of ownership of Discarded Materials from Contractor to Facility operator(s) of Approved/Designated Facilities. 8.2 Residential Three-Container System (Blue, Green, and Gray Containers) A. General. No later than January 1, 2022, Contractor shall provide a three-Container Collection program for the separate Collection of Source Separated Recyclable Materials, Yard Trimmings and Wood Waste, and Mixed Waste including Organic Food Scraps, using Containers that comply with the requirements of Section 8.7.7. B. Source Separated Recyclable Materials Collection (Blue Container). Contractor shall provide Blue Containers to Customers for Collection of Source Separated Recyclable Materials and shall provide Source Separated Recyclable Materials Collection 28 1645189.1 service. Contractor shall Transport the Source Separated Recyclable Materials to the Approved Source Separated Recyclable Materials Processing Facility, as specified in Section 9.1. The Parties agree that the list of accepted types of Source Separated Recyclable Materials may be added to or removed from this list from time to time by mutual consent of the City provided that in all cases SSBCOW is included for Collection. Contractor shall not add or remove materials to or from this list without written approval from the City Contract Manager or signed amendment to the Agreement, and such approval shall not be unreasonably withheld. Prohibited Container Contaminants shall not be Collected in the Blue Containers. The Containers shall comply with the requirements of Section 8.7.7. C. Green Waste Collection (Green Container). The Contractor will establish a Green Waste Collection Program with Commingling of Yard Trimmings and Wood Waste (Green Container). Contractor shall provide Green Containers to Customers for Collection of Yard Trimmings and Wood Waste and shall provide Collection service. Contractor shall Transport the Yard Trimmings and Wood Waste to the Approved Organic Waste Processing Facility, or the Approved Transfer Facility for Transfer and Transport to Approved Organic Waste Processing Facility. The Parties agree that types of Yard Trimmings and Wood Waste products may be added to or removed from this list from time to time by mutual consent or at the sole discretion of the City. Contractor shall not add or remove materials to or from this list without written approval from the City Contract Manager or signed amendment to the Agreement, and such approval shall not be unreasonably withheld. Carpets, non- Compostable Paper, textiles, and Prohibited Container Contaminants shall not be Collected in the Green Containers. D. Mixed Waste Collection (Gray Container). Contractor shall provide Gray Containers to Customers for Collection of Mixed Waste, and shall provide Mixed Waste Collection service. Contractor shall Transport the Mixed Waste to the Approved High Diversion Organic Waste Processing Facility, or the Approved Transfer Facility for Transfer and Transport to an Approved High Diversion Organic Waste Processing Facility. Contractor may allow carpets and textiles to be placed in the Gray Containers. Prohibited Container Contaminants shall not be Collected in the Gray Containers. 8.3 Commercial Three (3) and Three (3) plus Container Collection for Source Separated Recyclable Materials, Green Waste, Organics (Food Scraps) and Waste A. General. No later than July 1, 2022, Contractor shall provide a three or three plus Container Collection program for the separate Collection of Source Separated Recyclable Materials, Green and Wood Waste, Organic Food Waste (Scraps) and Non-Recyclable Waste using Containers that comply with the requirements of Section 8.7.7. B. Source Separated Recyclable Materials Collection (Blue Container). Contractor shall provide Blue Containers to Customers for Collection of Source Separated 29 1645189.1 Recyclable Materials and shall provide Source Separated Recyclable Materials Collection service. Contractor shall Transport the Source Separated Recyclable Materials to the Approved Source Separated Recyclable Materials Processing Facility, as specified in Section 9.1. The Parties agree that the list of accepted types of Source Separated Recyclable Materials may be added to or removed from this list from time to time by mutual consent or at the sole discretion of the City provided that in all cases SSBCOW is included for Collection. Contractor shall not add or remove materials to or from this list without written approval from the City Contract Manager or signed amendment to the Agreement, and such approval shall not be unreasonably withheld. Prohibited Container Contaminants shall not be Collected in the Blue Containers. The Containers shall comply with the requirements of Section 8.7.7. C. Green Waste Collection (Green Container). Contractor will establish a Green Waste Collection Program with Commingling of Yard Trimmings and Wood Waste (Green Container). Contractor shall provide Green Containers to Customers for Collection of Yard Trimmings and Wood Waste and shall provide Collection service. Contractor shall Transport the Yard Trimmings and Wood Waste to the Approved Organic Waste Processing Facility, or the Approved Transfer Facility for Transfer and Transport to Approved Organic Waste Processing Facility. The Parties agree that types of Yard Trimmings and Wood Waste products may be added to or removed from this list from time to time by mutual consent or at the sole discretion of the City. Contractor shall not add or remove materials to or from this list without written approval from the City Contract Manager or signed amendment to the Agreement, and such approval shall not be unreasonably withheld. Carpets, non- Compostable Paper, textiles, and Prohibited Container Contaminants shall not be Collected in the Green Containers. D. Commercial Food Waste (Scraps) Collection (Brown Containers). Contractor shall provide Brown Containers to Customers for Collection of Source Separated Food Waste, and shall provide Food Waste Collection service. Contractor shall Transport the Food Waste to (i) the Approved Organic Waste Processing Facility, or (ii) the Approved Transfer Facility for Transfer and Transport to an Approved Organic Waste Processing Facility. E. Waste Collection (Gray Container). Contractor shall provide Gray Containers to Customers for Collection of Gray Container Waste, and shall provide Gray Container Waste Collection service. Contractor shall Transport the Gray Container Waste to (i) the Approved/Disposal Facility, or (ii) the Approved Transfer Facility for Transfer and Transport to an Approved Disposal Facility. Contractor may allow carpets and textiles to be placed in the Gray Containers. Prohibited Container Contaminants shall not be Collected in the Gray Containers. The Containers shall comply with City approval. 30 1645189.1 8.4 Multi-family Residential and Optional Commercial Two (2) Container Source Separated Recyclable Materials and Mixed Waste Collection (Blue and Gray Containers) At this City’s option and as soon as January 1, 2022, Contractor shall provide a two- Container Collection program for all City approved Commercial Customers for Collection of Source Separated Recyclable Materials and Mixed Waste. Contractor shall provide Blue Containers to Customers for the Collection of Source Separated Recyclable Materials, and shall Transport the Source Separated Recyclable Materials to (i) the Approved/Designated Source Separated Recyclable Materials Processing Facility, or (ii) the Approved/Designated Transfer Facility for subsequent Transport to the Approved/Designated Source Separated Recyclable Materials Processing Facility, as specified in Section 9.1. Source Separated Recyclable Materials that are to be accepted for Collection in the Source Separated Recyclable Materials Collection are noted. The Parties agree that Source Separated Recyclable Materials may be added to or removed from this list from time to time by mutual consent or at the sole discretion of the City provided that in all cases SSBCOW is included for Collection. Contractor shall not add or remove materials to or from this list without written approval from the City Contract Manager or signed amendment to the Agreement, and such approval shall not be unreasonably withheld. Prohibited Container Contaminants shall not be Collected in the Blue Containers. Contractor shall provide Gray Containers to Customers for Collection of Mixed Waste, and shall allow Generators to intentionally commingle all Mixed Waste, excluding Source Separated Recyclable Materials, in the Gray Containers. Contractor shall Transport the contents of the Gray Container to (i) the Approved/Designated High Diversion Organic Waste Processing Facility, or (ii) the Approved/Designated Transfer Facility for subsequent Transfer and Transport to the Approved/Designated High Diversion Organic Waste Processing Facility, as specified in Section 9.1 Prohibited Container Contaminants shall not be Collected in the Gray Containers. The Containers shall comply with the requirements of Section 8.7.7. 8.5 City Facility and Community Event Services Contractor shall provide Collection & Port-a-potty/Handwashing services to all City facilities and community events listed herein, at the service levels requested by the City, and at no cost to City or other entities. The City facilities and community events to be serviced by Contractor include the following: A. City Facilities • Civic Center Complex – 3191 Katella Avenue • Community Center Complex – 10911 Oak Street • Laurel Park – Bloomfield Avenue • Little Cottonwood Park – 4000 Farquhar Avenue • Orville R. Lewis Park – 3662 Kempton Drive • Labourdette Park – 4401 Howard Avenue • Soroptimist Park – 10822 Pine Street 31 1645189.1 • Sterns Park – 3871 Farquhar Avenue • Coyote Creek Park – 10821 Oak Street • Stansbury Park – 3711 Toland Avenue • Los Alamitos Museum – 11062 Los Alamitos Boulevard • Other City facilities as may be requested by the City B. Community Events • Race Los Al and related events • 4th of July Fireworks Spectacular and related events • Winter Wonderland and related events • Serve Los Al and related events • My City My Los Al Street Fair and related events • Music and Movie Event Series and related events • Other City-sponsored community events as may be requested by City. C. Port-a-potty/Handwashing • Race Los Al and related events • 4th of July Fireworks Spectacular and related events • Winter Wonderland and related events • Serve Los Al and related events • My City My Los Al Street Fair and related events • Music and Movie Event Series and related events • Summer Parks Program 8.6 C&D Collection Contractor shall Collect C&D materials from all Customers that subscribe to C&D Collection service and Transport the C&D to: A. The Approved/Designated C&D Processing Facility, or B. The Approved/Designated Transfer Facility for Transfer and Transport to an Approved/Designated C&D Processing Facility. 8.7 Hazardous Household Waste, Christmas Tree Pickup, and Bulky Item Collection In addition to regular collection services, Contractor shall provide, free of charge, periodic collection of Household Hazardous Waste (HHW), Christmas tree pickup, and bulky items. HHW collection shall be twice per-year, at minimum. Christmas tree pickups shall be offered a minimum of three (3) weeks. Bulky items collection shall be free at least twice per-year per residential property or residential multi-family unit (up to 4 items). In addition, monthly sweeps of the City shall be performed, and any abandoned items removed. 8.7.1 Equipment Contractor shall furnish all labor, supervision, materials, supplies, and equipment necessary to provide for all services required by the terms of this Agreement. 32 1645189.1 8.7.2 Performance Standards Contractor shall perform Solid Waste Handling Services as required hereunder in a workmanlike manner consistent with good housekeeping standards and all relevant provisions of Applicable Laws. 8.7.3 Noise and Disruption Contractor shall perform Solid Waste Handling Services as required hereunder in such a manner as to minimize noise and other disruptive impacts including, without limitation, those upon traffic. 8.7.4 Collection Times Contractor shall not commence Collection of Solid Waste for residential Customers (including both single-family and multi-family residential Premises) until 7:00 a.m., nor shall such activities occur after 6:00 p.m. on any day. Contractor shall not commence Collection of Solid Waste for Commercial Premises (excluding multi-family residential premises) until 6:00 a.m., nor shall such activities occur after 7:00 p.m. on any day, unless prior written approval has been obtained from the City Manager and provided ay such approved Collection is limited to areas of the City in which noise from collection vehicles will not impact residential uses. No Solid Waste Collection shall occur on Sundays at Residential Premises or Commercial Premises, except in exceptional circumstances for which specific approval is given by the City Manager. Solid Waste Collection shall not occur on the following holidays: New Year’s Day, Memorial Day, the Fourth of July, Labor Day, Thanksgiving Day, and Christmas Day. 8.7.5 Collection Schedule All Collection routes shall be subject to final approval by the City Manager. Customers at all Residential and Commercial Premises within the City shall have not less than one established Collection day each week. Contractor shall provide notice to each Customer of its established Collection day(s), and shall provide at least thirty (30) days’ notice to Customers of any change in their established Collection day(s). Notwithstanding any provision herein to the contrary, should any established Collection day fall on a legal holiday, or on any other holiday which is observed by either a landfill or other lawful disposal site to which Solid Waste is taken for disposal, or a recycling facility to which Recyclable Material is taken, Contractor shall provide for Collection one (1) day later during the pick-up week, and the regular Collection schedule shall be resumed the following week. A pick-up week shall be defined as Monday through Saturday. Contractor may not change its established Collection schedules without obtaining the prior written consent of the City Manager. 8.7.6 Commingling of Routes Contractor shall not during its Collection process commingle Solid Waste Collected hereunder with Solid Waste Collected in any other City, or on behalf of any other entity operating or existing within City that is not subject to this Agreement, and is specifically prohibited from combining Collection routes related to services provided pursuant to this Agreement with Collection routes for other Cities it may service. 33 1645189.1 8.7.7 Contractor’s Containers A. Provision of Containers by Contractor and Color Standards 1. General. Contractor’s Collection Container bodies and/or lids shall comply with the color requirements of SB 1383 Regulations and display required labeling. The initial container colors are provided below: Blue Containers (Residential 35, 65 and 95 gallon)) Blue body and lid Commercial (95 gallon and 1 to 4 cubic yards) Blue body, black lid Multi-family (95 gallon and 1 to 4 cubic yards) Blue body, black lid Green Containers (Residential 35, 65 and 95 gallons) Green body and lid Commercial (95 gallon and 1 to 4 cubic yards) Green body, black lid Multi-family (95 gallon and 1 to 4 cubic yards) Green body, black lid Brown Containers (Commercial 35, 65 gallon and 2 yards) Brown body and black lid Gray Containers (Commercial 95 gallon and 1 to 4 cubic yards) Gray body and black lid Gray Containers (Mixed Waste) (Residential 35, 65 and 95 gallon) Gray body and lid Commercial (95 gallon and 1 to 4 cubic yards) Gray body, and black lid Multi-family (95 gallon and 1 to 4 cubic yards) Gray body, black lid Contractor shall provide all Customers with Collection Containers that comply with the Container color requirements specified in this Section or as otherwise specified in 14 CCR Section 18982; 14 CCR, Division 7, Chapter 12, Article 3; or other Applicable Law. 2. Blue Containers (Source Separated Recyclable Materials). Blue Containers must have a lid and/or body that is blue in color. Hardware such as hinges and wheels on the Blue Containers may be a different color. 3. Green Containers. Green Containers must have a lid and/or body that are green in color. Hardware such as hinges and wheels on the Green Containers may be a different color. 4. Gray Containers (Gray Container Waste or Mixed Waste including SSGCOW). Gray Containers must have a lid and/or body that are gray in color. 34 1645189.1 Hardware such as hinges and wheels on the Gray Container may be a different color. 5. Brown Containers (Food Waste Commercial Only). Brown Containers must have a body and /or lid that is brown in color. Hardware such as hinges and wheels on the Brown Containers may be a different color. 6. C&D Bins and Roll-Off Boxes. Bins and Roll-Off Boxes for Collection of C&D may be in any color, provided that the colors do not conflict with 14 CCR Section 18982; 14 CCR, Division 7, Chapter 12, Article 3; or other Applicable Law. The C&D Container color shall be reviewed and approved by the City. B. Labeling Requirements Imprinted or In-Mold Labels for New Containers or New Lids On or before January 1, 2022, Contractor shall imprint new Container bodies or lids with text or graphic images that indicate the primary materials accepted and the primary materials prohibited in that Container. Labels shall clearly indicate items that are Prohibited Container Contaminants for each Container. Prior to ordering any Containers or lids with in-mold labels, Contractor shall submit a sample of its proposed label, proposed location(s) for placement of labels on each type of Container, and its labeling plan to the City Contract Manager for approval. C. Container Standards (A) Contractor’s Containers shall initially provide containers that are new or in “as new” condition, which means fully functional, well painted or otherwise uniformly colored with no visible rust or graffiti, and properly labeled. (B) Contractor shall be responsible to maintain and replace, as necessary, all Containers. (C) All Containers shall be maintained by Contractor in good repair, and any question as to the meaning of this standard shall be resolved by the City Manager. (D) Contractor shall deliver Containers to each Customer at no additional charge. (E) Contractor shall ensure it maintains an accurate list that contains the total number of Carts, Bins, and indoor recycling containers at each service address or other identifying location associated with each account and the serial number or other identifying information associated with each Cart or Bin. Contractor shall keep this list up to date at all times, provide it to City upon request, and shall include a current updated list with each annual report as set forth in Section 23.3. In addition, Contractor shall provide this list to City within thirty (30) days of the Service Commencement Date. 35 1645189.1 (F) Contractor shall, at Responsible Customer’s request, refurbish, replace, and steam clean as necessary all Bins and Rolloff Boxes at no charge to Customers up to two times per calendar year. City may require the steam cleaning or replacement of Bins more frequently if it determines such action is needed to protect public health and safety. Additional steam cleaning or replacement shall be provided within 24 hours of notification by City or request by a Responsible Customer at a charge not to exceed the maximum rate set forth in Exhibit A hereto. (G) Contractor shall remove any graffiti that appears on a Container within twenty-four (24) hours (Sundays and holidays excepted) after becoming aware of it at no charge to Customers. (H) All Bins and Rolloff Boxes shall be kept freshly painted in a uniform fashion. All Bins and Rolloff Boxes shall be identified with Contractor’s name and phone number in letters not less than three inches high on its exterior so as to be visible and legible when the Container is placed for use. (I) At a Customer’s request, Contractor shall provide Bins with locking lids and locks and may charge rates to Customers for locking Bins which do not exceed the maximum rates set forth on Exhibit A. (J) Contractor shall mark its Containers with conspicuous warning notices stating disposal of Hazardous Substances in the Containers is prohibited. (K) Contractor is responsible for cleaning and maintaining Collection Container enclosures in a manner reasonably acceptable to City, including, but not limited to, sweeping and removing litter and debris from the floor of the enclosure after each Collection and annually steam cleaning the enclosure area. 8.7.8 Missed Pick-ups In case of a missed pick-up called in by a Customer, Contractor shall Collect Solid Waste and Recyclable Material from such Customer by 5:00 p.m. on the day of the call if Contractor was notified before 10:00 a.m. that same day or, for calls received after 10:00 a.m., within twenty-four (24) hours after the call is received. Records of the addresses of all missed pick-ups shall be maintained by Contractor, and shall be reported to City on a monthly basis in accordance with Section 23.1. If Contractor demonstrates to the satisfaction of the City Manager a pattern of ongoing late “set-outs” by a given Customer, missed pick-ups resulting from late set-outs by that Customer shall not be counted as missed pick-ups in evaluating Contractor’s performance hereunder. The Customer service phone system required by Section 11.8.2 hereof is intended, among other things, to serve as a “hotline” for Customers to call in the event Solid Waste placed for Collection is not Collected by Contractor and to facilitate having such Solid Waste Collected as soon as reasonably possible, and in no event later than as required by the provisions hereof. 8.7.9 Record of Non-collection As more fully set forth herein, Contractor shall Collect all Solid Waste placed for Collection by Customers in Containers, excepting materials that do not meet the definition of Solid 36 1645189.1 Waste (such as hazardous materials) or which are commingled with such materials. Whenever Contractor determines not to Collect any Solid Waste deposited for Collection, Contractor shall leave a tag at least 2” by 6” in size, indicating the reason for Contractor’s refusal to do so. This information may be either handwritten or left by means of a check system (i.e., checking off boxes on a preprinted form). The tag shall provide Contractor’s business name and its local telephone number and shall be securely fastened to the Container or the article refused. Contractor shall maintain a record of all such taggings at its place of business. Such record shall contain the date of such notice, street address, reason for non-collection, and a summary of any communications between Contractor and the Customer involved. Such record shall be retained and reported to the City on a monthly basis in accordance with Section 23.1. Contractor shall follow-up with all Customers receiving a tag for non-collection by telephone within twenty-four (24) hours. 8.7.10 Commercial Bulky Item Service Contractor shall provide Bulky Item Collection services to Commercial Customers on an on-call basis. Contractor may charge rates for such services. Bulky Item Collection service calls shall be responded to within a reasonable time but not longer than seven (7) days from the date of the Customer’s call for service. Contractor shall produce, keep current, and provide public information specifically outlining the Bulky Item pick-up service. 8.7.11 Scout and/or Push Out Services Certain Commercial Premises within the City Limits are uniquely configured such that Contractor may determine that a smaller vehicle may be needed to retrieve a Customer’s Container in order for a regular Collection vehicle to service the Container (“Scout Service”). Certain Commercial Premises may be configured such that a Customer’s Container must be manually moved in order to be serviced by a Collection Vehicle (“Push Out Service”). Contractor shall provide Scout Service and/or Push Out Service to Commercial Premises as it deems appropriate, however Contractor may not charge for either Scout Service and/or Push Out Service. 8.8 Other Collection Programs as May Be Required by Law In the event CalRecycle, or any federal, state, or local law or regulation, imposes upon City or Contractor a requirement for the implementation of any source separated program for the Collection of any waste material (whether or not meeting the definition of Solid Waste hereunder) not already covered by this Agreement, whether Commercial or Residential in nature, Contractor shall design and present a program to City to comply with such requirement, which program shall meet the City Manager’s reasonable approval (“Proposed Program”). Except with respect to programs which are required due to Contractor’s failure to achieve the diversion requirements set forth herein at such time as (if) any such Proposed Program is implemented, Contractor and City shall meet and confer in good faith to determine a fair and reasonable adjustment to the maximum rates set forth on Exhibit A in order to compensate Contractor for implementing said Proposed Program. In determining a fair and reasonable rate adjustment, City may consider the cost to Contractor in providing the Proposed Program. If City and Contractor cannot agree on a rate adjustment for the Proposed Program within ninety (90) days from the date City first requests 37 1645189.1 Contractor design and present the Proposed Program to City, then City may enter into an agreement with another party for the services that would be provided by Contractor’s Proposed Program and Contractor agrees that the Proposed Program shall be exempt from the exclusivity granted to Contractor in this Agreement. 8.9 Contractor shall present the Proposed Program within sixty (60) Contractor shall present the Proposed Program within sixty (60) days of a request to do so by City. The Proposed Program shall include a detailed description of the following: (1) Containers to be used and method of Collection; (2) equipment to be used (e.g., vehicle number, models, capacity, and age); (3) number of employees required for the Proposed Program; (4) materials to be Collected; (5) promotional and public education materials; (6) a two-year projected financial analysis of the Proposed Program’s operations in an operating statement format, including documentation of the key assumptions underlying the projections, and the support for those assumptions; and (7) any other information required by City to evaluate the Proposed Program. Temporary Services Contractor shall provide Temporary Services on an on call basis to any Customer requesting such service pursuant to the following conditions: A. Bins and Roll off Boxes utilized in connection with Temporary Services shall meet the minimum standards set forth herein. B. Temporarily placed Bins may be used for small cleanup type projects at Single Family and Multi-Family Dwellings; provided, however, Bins used for such purposes shall not remain at the same address for a period that exceeds two consecutive weeks. Bins may not be placed in any public rights-of-way so as to create a safety hazard or so as to block any right-of-way to a degree that it is not reasonably usable. Bins placed in City ’s rights- of-way shall be subject to such requirements as may be imposed by City, including without limitation the payment of fees as may be adopted by the City Council, and at a minimum shall be equipped with reflectors, reflective tape, reflective paint, or other reflective devises which, to the satisfaction of the City Manager, make such Bins reasonably visible to vehicle traffic at night. C. Contractor shall work with Customers requesting construction and demolition debris Collection services to ensure that requirements under the City ’s ordinance regulating the recycling and disposal of construction and demolition waste are met, including, but not limited to, ensuring that each covered project meets the minimum required diversion level. Contractor agrees to comply with all provisions of the ordinance, as may be amended from time to time, and to provide services for construction contractors in City as may be contemplated by any such ordinance at no charge (such as assistance in preparing plans for the collection, recycling and disposal of construction and demolition waste in accordance with this Agreement and providing data for reporting to the City. D. In addition to complying with any related requirements that may exist in any ordinance which may be in effect in City regulating construction and demolition waste, including specific diversion levels that may be required by any such ordinance, Contractor 38 1645189.1 shall make all reasonable efforts to recycle all construction and demolition waste it Collects, especially to the degree such loads contain clean inert materials. Towards this end, Contractor shall make available to Customers involved in construction separate containers within which to Collect different types of marketable materials, such as dirt, steel, concrete and wood. 8.9.1 Warranties and Representations Contractor warrants and represents that it is aware of and familiar with City ’s Source Reduction and Recycling Element (the “SRRE”), that it is familiar with City ’s waste stream, and that it has the ability to and will provide sufficient programs and services to ensure City will meet or exceed the diversion goals (including, without limitation, amounts of Solid Waste to be diverted, time frames for diversion, and any other requirements) set forth in AB 939, and all amendments thereto, and that it shall do so without imposing any costs or fees other than those set forth on the attached Exhibit A (including if it implements new programs to achieve such goals which are not called out herein). Stated otherwise, Contractor acknowledges that it is responsible for ensuring that its various programs achieve the diversion requirements hereunder, and that it may be required to modify its programs from time to time, at no additional cost to the City or Customers, to meet such diversion requirements. Contractor specifically acknowledges that the City ’s current mandated diversion goal as set forth pursuant to the Applicable Laws is fifty percent (50%), and that this is subject to possible modification. 8.9.2 Mutual Cooperation City and Contractor shall reasonably cooperate in good faith with all efforts by each other to meet City ’s diversion and other compliance requirements imposed by AB 939 and other Applicable Laws. In this regard, City ’s obligations shall include, without limitation, making such petitions and applications as may be reasonably requested by Contractor for time extensions in meeting diversion goals, or other exceptions from the terms of AB 939 and other Applicable Laws. 8.9.3 Waste Reduction and Program Implementation Contractor shall implement the programs identified in the SRRE immediately upon the Service Commencement Date hereof, and will implement any programs required by any amendments or modifications thereto. In meeting this obligation Contractor shall be mindful of and comply with all requirements of the County Agreement, including specifically, without limitation, the requirements thereof generally relating to (i) the delivery of Solid Waste only to transfer stations that provide quarterly certifications of Solid Waste delivered, and (ii) the disposal of residual Solid Waste that remains after recycling processes have been completed. On and after the Service Commencement Date, Contractor shall provide City with monthly, quarterly and annual written reports in a form adequate to meet City ’s AB 939 related filing and reporting requirements to CalRecycle and to the County of Orange throughout the Term of this Agreement wherein City ’s performance under the above programs shall be set forth in detail. Contractor shall be responsible to prepare, or assist City with the preparation of, all reports and other information as may be required by any agency, including specifically, the State of California, in order to comply with AB 939. Contractor shall reimburse City for any costs City incurs in appearing before CalRecycle and/or the County of Orange in relation thereto. 39 1645189.1 A. Disposal and Processing Plan for the Residential, Commercial, Multi-family and Industrial Waste 1. The residual waste from the GREY Container collected from Residential, Multi-family and Commercial sources will be delivered to the Orange County Landfill system under the City’s waste delivery agreement. Prior to the residual being delivered to the Orange County landfill system for disposal, some of the streams will be transported to one of the UWS approved facilities for processing and recovery of the recyclable materials. 2. The BLUE Container material collected from Residential, Multi-Family and Commercial sources will be delivered to the approved UWS material recovery facility (MRF) in Santa Fe Springs. At this facility, recyclables are sorted, consolidated and shipped to market. 3. Commercial “A” Route - UWS is proposing to process select commercial loads (“A” route) with high levels of recyclables at the Santa Fe Springs approved material recovery facility (MRF) for the recovery of recyclable materials. This program will be deployed to any customer that does not generate food waste or is not participating in the source separated recycling program. 4. Source-Separated Green Waste - The GREEN Container material collected from Residential, Multi-Family and Commercial generators will be delivered to the UWS-owned Greenwise Soil Technologies compost facility in South Gate. Material delivered to Greenwise will be screened through a series of devices, size reduced, composted and blended in order to make a rich soil amendment available for the commercial market. UWS through its many end-use markets will ensure that the material coming from the City of Los Alamitos has a home and will not be landfilled or used as alternative daily cover (ADC). The residuals and small fractions from the compost process will be returned to the County of Orange landfill system under the City’s waste delivery agreement. 5. Source-Separated Commercial Food Waste and Scraps (Large Generators) - The source separated Organic Container (brown) collected from Commercial customers that meet the minimum threshold as outlined in SB1383 will be provided with a separate container for the separation and collection of food waste and scraps. This material will be transferred through the SFS MRF or delivered directly to the 24th Street High Diversion Facility located in Los Angeles for processing. At the 24th street facility, the source separated organic material will be processed through the OREX-500 for separation of the organic material from the non-organic waste. Once the organic fraction is separated, it will be delivered to the Anaergia Bio- Energy facility in Rialto for further conversion into renewable natural gas (RNG) and as well as an organic rich fertilizer. 40 1645189.1 6. Co-collected Waste and Organics (food scraps) Two-Container system from Commercial and Multi-family Customers - UWS proposes a co-collection of waste and organics from the commercial and multi-family customers for delivery to our 24th Street High Diversion Facility. This co-collection program allows for the existing collection of waste from certain commercial customers and multi-family customers to remain in place and not require these customers to subscribe to a separate program for the collection of organics. With this proposed program, the food waste and scraps would be placed in the waste bin or cart where most of this material is going today in order to ensure a high level of participation and the best opportunity to recover the organic material. This material will be transferred through the SFS MRF or delivered directly to the 24th Street High Diversion Facility located in Los Angeles for processing. At the 24th street facility, the waste with the organic material will be processed through the OREX-500 for separation of the organic fraction from the non-organic waste. Once the organic fraction is separated, it will be delivered to the Anaergia Bio-Energy facility in Rialto for further conversion into renewable natural gas (RNG) and as well as an organic rich fertilizer. 7. Conversion to Renewable Natural Gas (RNG) and High Quality Fertilizer – With mixed collection to AD, organics can be separated from MSW using Organics Extrusion Press (OREX) and fed to an anaerobic digester to generate renewable energy. Mixed waste collection and processing at the High Diversion Facility leverages local and existing anaerobic digestion infrastructure. This strategy avoids additional collection cost, new truck routes, and reliance on human separation. This strategy also provides certainty in processing all organics with reliable and long term fixed price capacity at Anaergia Energy Facility. 8.9.4 Guarantee and Indemnification Contractor warrants and guaranties that it will carry out its obligations under this Agreement such that: (i) both it and City will at all times be in compliance with the requirements of all Applicable Laws including specifically AB 939 and SB 1383, and (ii) City will meet or exceed the diversion requirements (including, without limitation, amounts of Solid Waste to be diverted, time frames for diversion, and any other requirements) set forth in AB 939, SB 1383 and all amendments thereto. In this regard, Contractor agrees that it will, in addition to any other requirement contained herein, at its sole cost and expense: A. To the extent legally permitted, defend, with counsel approved by City , indemnify, and hold harmless City and City ’s officials, employees, and agents from and against all fines and/or penalties and other liabilities which may be imposed by CalRecycle or any other regulatory agency if: (1) Contractor fails or refuses to timely provide information relating to its operations which is required pursuant to this Agreement or any Applicable Laws and such failure or refusal prevents or delays City from submitting reports required by Applicable Laws in a timely manner; or (2) the source reduction and recycling goals, diversion goals, program implementation requirements, or any other requirements of 41 1645189.1 Applicable Laws are not met with respect to the waste stream Collected under this Agreement; B. Assist City in responding to inquiries from CalRecycle; C. Assist City in preparing for, and participating in, any review of City ’s SRRE pursuant to Applicable Laws; D. Assist City in applying for any extension if so directed by City; E. Assist City in any hearing conducted by CalRecycle relating to City ’s compliance with Applicable Laws; F. Assist City with the development of and implement a public awareness and education program that is consistent with the City ’s SRRE, as well as any related requirements of Applicable Laws; G. Provide City with recycling, source reduction, and other technical assistance related to compliance with the Applicable Laws; H. Defend, with counsel acceptable to City, City and City ’s officials, employees, and agents against the imposition of fines and/or penalties, or any other liabilities, issued by CalRecycle pursuant to AB 939 and SB 1383; I. Be responsible for and pay, any fees, penalties or other costs imposed against the City by CalRecycle, and indemnify and hold harmless City from and against any fines, penalties, or other liabilities, levied against it for violation of AB 939’s diversion requirements, or violation of any other provision of the Applicable Laws, arising from or in any way related to Contractor’s performance of its obligations under this Agreement. 8.9.5 Guaranteed Minimum Contractor Recycling Rate Contractor shall divert a minimum of fifty percent (50%) of all Solid Waste it Collect’s under this Agreement and ensure that the City is in full compliance with the CalRecycle’s waste diversion requirements under AB939 for each calendar year beginning January 1, 2022, or, if less, such diversion percentage as may then be required under Applicable Law (“Recycling Diversion Requirement”). Diversion of materials not Collected by Contractor shall be counted towards meeting the Recycling Diversion Requirement. For the purposes of this section, Contractor diversion includes only Recycling methods, Transformation, and/or other forms of landfill diversion which are accepted by the State toward meeting the City’s diversion goal under AB 939. Contractor shall not be entitled to a reduction in the Recycling Diversion Requirement, or a rate adjustment, if or when: A. Transformation or other facilities are no longer available for any reason; B. CalRecycle diversion credit under AB 939 or other Applicable Laws is no longer provided for Solid Waste sent to a Transformation facility; or 42 1645189.1 To comply with this Section, Contractor is required to submit timely tonnage reports supporting the Recycling Diversion Requirement, and to provide supporting documentation as may be requested by City or its designee as part of, or independent of, an audit. Failure to meet, and fully support, the Recycling Diversion Requirement may result in City assessing liquidated damages in accordance with Section 18.7 and/or termination of this Agreement pursuant to Section 18.6 8.9.6 Waste Generation/Characterization Studies Contractor acknowledges that City must perform Solid Waste generation and disposal characterization studies periodically to comply with the requirements of AB 939. Contractor agrees to participate and cooperate with City and its agents and to accomplish studies and data collection and prepare reports, as needed and directed by City, to determine weights and volumes of Solid Waste Collected and characterize Solid Waste generated, disposed, transformed, diverted or otherwise handled/processed to satisfy the requirements of AB 939. SECTION 9. OTHER SERVICES 9.1 Transfer, Processing, and Disposal A. Contractor shall Transport all Discarded Materials to the Approved Facilities designated herein and shall Transfer, Process, and Dispose of Discarded Materials in accordance with this Section. The Approved Facilities shall be as follows and in compliance with State requirements thereto: 1. (Santa Fe Springs Material Recovery Facility). Contractor’s Approved Transfer Facility shall be a SFS MRF located 9016 Norwalk Blvd., Santa Fe Springs, CA that will receive and transfer Residential Grey Container, Multi- Family, and Commercial Source Separated Recyclable Materials, SSGCOW, and Gray Container Waste/Mixed Waste Collected in accordance with this Agreement. 2. Approved Source Separated Recyclable Materials Processing Facility (Santa Fe Springs Material Recovery Facility) (Blue Containers). Contractor’s Approved Recyclables Processing Facility located at 9016 Norwalk Blvd., Santa Fe Springs, CA shall be a Facility or operation that Processes Single-Family, Multi- Family, and Commercial Source Separated Recyclable Materials to recover materials designated for Collection in the Blue Container. 3. Approved Organic Waste Processing Facility (Green Wise Soil and Composting Facility in South Gate) (Green Containers). Contractor’s Approved Organic Waste Processing Facility located at 10120 Miller Way, South Gate, CA shall be a Facility that Processes Single-Family, Multi-Family, and Commercial SSGCOW to recover Source Separated Organic Waste. 4. Approved Disposal Facility (Gray Containers). Contractor’s Approved Disposal Facility shall be the County of Orange landfill system. 5. Approved High Diversion Organic Waste Processing Facility (24th 43 1645189.1 Street Organics Processing Facility) (Gray Containers). Contractor’s Approved High Diversion Organic Waste Processing Facility is located at 2460 24th Street, Los Angeles, CA and (i) Processes Single-Family, Multi-Family, and Commercial Mixed Waste Collected in accordance with this Agreement; and, (ii) is a High Diversion Organic Waste Processing Facility. 9.2 City reserves right to direct use of a City-Designated Facility at a later date Contractor agrees that the City Council may, upon making a finding of public health, safety, well-being, or benefit, direct Contractor to deliver any or all Source Separated Recyclable Materials, SSGCOW, Mixed Waste, and/or Gray Container Waste Collected within the City to any type of Designated Facility, as City may designate. The Residue remaining after Processing, or recovery of Source Separated Recyclable Materials, SSGCOW, and C&D shall be subject to the Council’s authority to direct Disposal at a Disposal Facility designated by the Council. City shall reserve the right to direct such Residue in accordance with the Council’s direction in any agreement with the Facility operator of any Transfer Facility or Processing Facility where Contractor delivers Source Separated Recyclable Materials, SSGCOW, Mixed Waste, and/or Gray Container Waste. Contractor agrees to Transport Discarded Materials to the Designated Facility(ies) designated by the Council, commencing no later than Sixty (_60) days from receipt of notice from the City Manager. 9.3 Contamination Monitoring Four contamination monitoring subsections are provided in this Section 9.3. • Section 9.3.1 provides general requirements on contamination monitoring including Container inspections methods, actions to be taken upon identification of Prohibited Container Contaminants, and Disposal of contaminated materials. • Section 9.3.2 describes optional, ongoing contamination monitoring services that are not explicitly required by SB 1383 Regulations, but the City may want to include, and which may be provided by the Contractor as a routine course of providing its services under the Agreement. • Section 9.3.3 provides the option to use Hauler Route reviews, pursuant to 14 CCR Section 18984.5(b), to meet the contamination monitoring requirements of SB 1383 Regulations (14 CCR Section 18984.5). 9.3.1 Contamination Monitoring Procedures A. General. This Section presents inspection method(s) for Prohibited Container Contaminants to be used by the Contractor in conducting contamination monitoring the Contractor may use one or more of these options to maintain compliance required by Sections 9.3.2 and 9.3.3. B. Container Inspection Methods. 1. Option 1: Physical Container Inspections. When Contractor’s Hauler Route 44 1645189.1 personnel dismounts from Collection vehicles to empty a Container, such personnel shall lift the Container lid and observe the contents. Upon finding Prohibited Container Contaminants in a Container, Contractor shall follow the contamination noticing procedures and contaminated Container handling protocols set forth in Section 9.3.1.C. 2. Option 2: Visual Inspections via On-Board Monitoring System. For Collection vehicles with automated Collection service, the Collection vehicle hopper shall be equipped with a video camera and monitoring system. The Contractor’s Hauler Route personnel shall observe, via the hopper video camera and monitoring system, the contents of the Containers as the materials are emptied into the vehicle. Upon finding Prohibited Container Contaminants in a Container, Contractor shall follow the contamination noticing procedures and contaminated Container handling protocols set forth in Section 9.3.1.C. The next day on which that Customer is to receive service, the Contractor’s Hauler Route personnel shall dismount the Collection vehicle, lift the lid of the Container, and visually inspect the contents of the Container. If the Contractor’s Hauler Route personnel determines that the Container again contains Prohibited Container Contaminants, Contractor shall follow the contamination noticing procedures and contaminated Container handling protocols set forth in Section 9.3.1.C. 3. Option 3: Visual Inspection via Remote Monitoring. a. Contractor shall install camera equipment in Containers and use a cloud-based software that will enable Contractor, City, and/or other applicable enforcement personnel to monitor and examine the contents of Single-Family, Multi-Family, and/or Commercial Containers using digital photographic images obtained from the cameras installed in the Containers. The digital images shall be maintained and accessible for examination through the Contractor’s cloud-based software platform. Contractor will perform regular and frequent remote monitoring of each Container, automatically, manually, or in combination using the remote monitoring system. b. The Container monitoring system will capture digital pictures multiple times each day of the contents of the Container to document and visualize various layers of material in the Container. Capturing multiple digital pictures is necessary to detect Prohibited Container Contaminants throughout the Container. Contractor shall capture no less than two (2) digital pictures per Container per day, at time intervals of no less than six (6) hours. C. Actions upon Identification of Prohibited Container Contaminants. 1. Record Keeping. The driver or other Contractor representative shall record 45 1645189.1 each event of identification of Prohibited Container Contaminants in a written log or in the on-board computer system including date, time, Customer’s address, type of Container (Blue, Green, or Gray Container); and maintain photographic evidence, if required. Contractor shall submit this record to the Contractor’s Customer service department, and Contractor’s Customer service department shall update the Customer’s account record to note the event, if the documentation if the on-board computer system did not automatically update the Customer’s account record. 2. Identification of Excluded Waste. If Contractor’s personnel observe Excluded Waste in an uncollected Container, the Contractor’s personnel shall issue a non-Collection notice for this Container in accordance with Section 9.3.1.C.5 and shall not Collect the Discarded Materials that contain Excluded Waste. Contractor’s personnel shall record that observation in accordance with Section 9.3.1.C.1 and immediately inform their route supervisor. Contractor shall follow protocols specified in Sections 9.3.1.C.5 and 9.3.1.C.6. The route supervisor shall investigate and initiate applicable action within one (1) Business Day or sooner if the Hazardous Waste may cause immediate danger. 3. Courtesy Pick-Up Notices. Upon identification of Prohibited Container Contaminants in a Customer’s Container, Contractor shall provide the Customer a courtesy pick-up notice. The courtesy pick-up notification shall: (i) inform the Customer of the observed presence of Prohibited Container Contaminants; (ii) include the date and time the Prohibited Container Contaminants were observed; (iii) include information on the Customer’s requirement to properly separate materials into the appropriate Containers, and the accepted and prohibited materials for Collection in the Blue Container, Green Container, and/or Gray Container; (iv) inform the Customer of the courtesy pick-up of the contaminated materials on this occasion with information that following two (2) instances (See guidance in subsection C.4 below) Contractor may assess contamination Processing fees or issue a non-Collection notice; and, (v) may or shall include photographic evidence. Contractor shall leave the courtesy pick-up notice attached to or adhered to the Generators’ contaminated Containers; at the Premises’ door or gate; or, subject to City ’s approval, may deliver the notice by mail, e-mail, text message, or other electronic message. Contractor shall Collect the contaminated Source Separated Recyclable Materials or SSGCOW and Transport the material to the appropriate Approved Facility for Processing; or, Contractor may Collect the contaminated materials with Gray Container Waste/Mixed Waste and Transport the contaminated materials to the appropriate Approved/Designated Facility for Disposal/ Processing. 4. Notice of Assessment of Contamination Processing Fees. If the Contractor observes Prohibited Container Contaminants in a Generator’s Container on more than three (3) consecutive occasions and issued courtesy pick-up notices on each of those occasions, the Contractor may impose a contamination Processing fee of $50.00 (which will be adjusted annually pursuant to Section 24.3). Contractor 46 1645189.1 shall notify the City in its monthly report of Customers for which contamination Processing fees were assessed. Contractor shall leave a contamination Processing fee notice attached to or adhered to the Generators’ contaminated Containers; at the Premises’ door or gate; or, subject to City ’s approval, may deliver the notice by mail, e-mail, text message, or other electronic message. The contamination Processing fee notice shall describe the specific material(s) of issue, explain how to correct future set outs, and indicate that the Customer will be charged a contamination Processing fee on its next bill. The format of the contamination Processing fee notice shall be approved by the City Contract Manager. Contractor shall Collect the contaminated Source Separated Recyclable Materials or SSGCOW and Transport the material to the appropriate Approved/Designated Facility for Processing. 5. Non-Collection Notices. Upon identification of Prohibited Container Contaminants in a Container in excess of standards agreed upon by the Parties or Excluded Waste, Contractor shall provide a non-Collection notice to the Generator. The non-Collection notice shall, at a minimum: (i) inform the Customer of the reason(s) for non-Collection; (ii) include the date and time the notice was left or issued; (iii) describe the premium charge to Customer for Contractor to return and Collect the Container after Customer removes the Contamination; and, (iv) provide a warning statement that a contamination Processing fee may be assessed if Prohibited Container Contaminants are observed on more than two (2) consecutive occasions. The non-Collection notice may or shall include photographic evidence of the violation(s). The Contractor’s notice of non-Collection may be left attached to or adhered to the Generator’s Container, or at the Premises’ door or gate at the time the violation occurs, or subject to City ’s approval, may be delivered by mail, e-mail, text message, or other electronic message. Contractor shall submit a sample of its non-Collection notice to the City Contract Manager for approval prior to implementing use of it with Customers. 6. Communications with Customer. Whenever a Container at the Premises of a Commercial or a Multi-Family Customer is not Collected, Contractor shall contact the Customer on the scheduled Collection day or within twenty-four (24) hours of the scheduled Collection day by telephone, email, text message, or other verbal or electronic message to explain why the Container was not Collected. Whenever a Container is not Collected because of Prohibited Container Contaminants, a Customer service representative shall contact the Customer to discuss, and encourage the Customer to adopt proper Discarded Materials preparation and separation procedures. 7. Contractor Return for Collection. Upon request from Customer, Contractor shall Collect Containers that received non-Collection notices within one (1) Working Day of Customer’s request if the request is made at least two (2) 47 1645189.1 Working Days prior to the regularly scheduled Collection Day. Contractor shall bill Customer for the extra Collection service event (“extra pick-up”) at the applicable City -approved Rates only if Contractor notifies Customer of the premium Rate for this service at the time the request is made by Customer. D. Disposal of Contaminated Materials. If the Contractor observes Prohibited Container Contaminants in a Generator’s Container(s), Contractor may Dispose of the Container’s contents, provided Contractor complies with the noticing requirements in Section 9.3.1.C.5 above. 9.3.2 Ongoing Contamination Monitoring A. Route Personnel Monitoring. Contractor shall assist on an ongoing basis in minimizing contamination by helping to educate Customers on acceptable and non- acceptable materials through ongoing education and outreach efforts in Section 9.4 and through on-going monitoring of the contents of Collection Containers. The ongoing Container monitoring shall be performed by Contractor using the method described in Section 9.3. B. Periodic Sampling and Sorting Contractor shall implement a monthly contamination monitoring program of Source Separated Recyclable Materials and SSGCOW that involves Contractor’s performance of visual inspections of aggregate Collection vehicle contents from City Hauler Routes to assess the level of Prohibited Container Contaminants. This shall be conducted through a “pad inspection” in which Source Separated Recyclable Materials or SSGCOW from a Collection vehicle are emptied onto a pad at the Approved/Designated Facility and an assessment of the Prohibited Container Contaminants is made. Up to four (4) visual pad inspections shall be performed by Contractor once a month/quarter/year, targeting different Hauler Routes. Based on pad inspection results, Contractor shall perform targeted outreach to Customers on the City Hauler Routes found to have Prohibited Container Contaminants in excess of the standards agreed upon by the Contractor and City. Outreach shall take the form of Hauler Route-level direct mailings to highlight common Prohibited Container Contaminants and to provide instruction on proper separation of Discarded Materials. Contractor shall maintain records and provide reports monthly regarding contamination inspections. 9.3.3 Contamination Monitoring (Hauler Route Review). A. Methodology and Frequency Commencing on or before January 1, 2022, the Contractor shall, at its sole expense, conduct Hauler Route reviews for Prohibited Container Contaminants in Collection Containers in a manner that is deemed safe by the Contractor; is approved by the City; and, is conducted in a manner that results in all Hauler Routes being reviewed annually or more frequently. 48 1645189.1 The Contractor shall conduct Hauler Route reviews that include inspection of the contents of Customers’ Collection Containers for Prohibited Container Contaminants in a manner such that a minimum of five percent (5%) of Containers on each and every Hauler Route are inspected annually. The Containers shall be randomly selected by (insert method if desired). Contractor shall develop a Hauler Route review methodology to accomplish the above Container inspection requirements and such methodology shall comply with the requirements of 14 CCR Section 18984.5(b). Contractor shall submit its proposed Hauler Route review methodology for the coming year to the City no later than January 15 of each year describing its proposed methodology for the calendar year and schedule for performance of each Hauler Route’s annual review. Contractor’s proposed Hauler Route review methodology shall include not only its plan for Container inspections, but may or shall also include its plan for prioritizing the inspection of Customers that are more likely to be out of compliance. City and/or CalRecycle will review and approve the proposed methodology. Contractor may commence with the proposed methodology upon approval. If the City and/or CalRecycle notifies the Contractor that the methodology is inadequate to meet the requirements of 14 CCR Section 18984.5(b), Contractor shall, at its sole expense, revise the methodology and, after obtaining City or CalRecycle approval, conduct additional Hauler Route reviews, increased Container inspections, or implement other changes using the revised procedure. If the Contractor’s proposed methodology meets the requirements of 14 CCR Section 18984.5(b), but has been deemed inadequate by the City, the Contractor shall, at the expense of the City, revise the methodology and implement the necessary changes using the revised procedure. The City’s Contract Manager may request, and Contractor shall accept, modifications to the schedule to permit observation of the Hauler Route reviews by the City. In addition, Contractor shall provide an email notice to the City ’s Contract Manager no less than ten (10) Working Days prior to each scheduled Hauler Route review that includes the specific time(s), which shall be within the City ’s normal business hours, and location(s). B. Noticing of Generators with Contamination, Non-Collection, and Disposal of Materials. Upon finding Prohibited Container Contaminants in a Container, Contractor shall follow the contamination noticing procedures and contaminated Container handling protocols set forth in Section 9.3.1.C. C. Quarterly Reporting Requirements. Contractor shall maintain records and report to the City quarterly on contamination monitoring activities and actions taken. 9.4 Education and Outreach 49 1645189.1 A. General. In order to promote public education, Contractor shall create all public education materials and conduct education programs and activities described in this Section at its expense. B. Program Objectives. Contractor’s public education and outreach strategy shall focus on improving Generators’ understanding of the benefits of and opportunities for source reduction, Reuse, and Landfill Disposal reduction. In general, Contractor-provided public education and outreach, which shall include all content required by this Section 9.4, should: (i) inform Generators about the services that are provided under this Agreement with specific focus on describing the methods and benefits of source reduction, Reuse, and reduction of Solid Waste Disposal; (ii) instruct Generators on the proper method for placing materials in Containers for Collection and setting Containers out for Collection with specific focus on minimizing contamination of Source Separated Recyclable Materials and SSGCOW; (iii) clearly define Excluded Waste and educate Generators about the hazards of such materials and their opportunities for proper handling; (iv) discourage Generators from buying products if the product and its packaging are not readily reusable, recyclable, or compostable; (v) inform Generators subject to Food Recovery requirements under SB 1383 Regulations of their obligation to recover Edible Food and actions they can take to prevent the creation of Food Waste; (vi) encourage the use of Compost; and, (vii) encourage Generators to purchase products/packaging made with Recycled-content materials. The cumulative intended effect of these efforts is to reduce each Generator’s reliance on Contractor-provided Gray Container Waste/Mixed Waste service and, ultimately, Disposal, and Contractor agrees to support and not undermine or interfere with such efforts C. Contractor Cooperation and/or Support for City Educational Efforts. Contractor acknowledges that they are part of a multi-party effort to operate and educate the public about the integrated waste management system. Contractor shall cooperate and coordinate with the City Contract Manager on public education activities to minimize duplicative, inconsistent, or inappropriately timed education campaigns. Contractor shall obtain approval from the Contract Manager on all Contractor- provided public education materials including, but not limited to: print, radio, television, or internet media before publication, distribution, and/or release. City shall have the right to request that Contractor include City identification and contact information on public education materials and approval of such requests shall not be unreasonably withheld. The City reserves the right to direct the Contractor to modify the education and outreach program at any time. D. Annual Education Plan. Annually, Contractor shall develop and submit an annual public education plan to promote the programs performed by Contractor under this Agreement. The annual public education plan shall present the education activities for the upcoming calendar year and shall be submitted with the Contractor’s annual report. Each public education plan shall specify the target audience for services provided, include upcoming promotions for ongoing and known special events, identify program objectives, individual tasks, public education materials to be developed or updated, opportunities for expanded partnerships, a timeline for implementation, and an itemized description of how 50 1645189.1 Contractor’s annual public education budget (described in Section 9.4.E) will be spent. The City Contract Manager shall be permitted to provide input on each annual public education plan, and the plan shall not be finalized or implemented without approval of the City Contract Manager. Each plan’s implementation success shall be measured according to the deadlines identified and products developed. Contractor shall meet with the City Contract Manager to present and discuss the plan. City Contract Manager shall be allowed up to thirty (30) days after receipt to review and request modifications. The City Contract Manager may request, and Contractor shall not unreasonably deny, modifications to be completed prior to approving the plan. Contractor shall have up to fifteen (15) Business Days to revise the plan in response to any requested changes by the City Contract Manager. Any further delays may result in Liquidated Damages for failure to perform education and outreach activities. Each Business Day that the plan is late shall count as a single event/activity. E. Education Requirements during Program Implementation/Roll-Out. Beginning on the Effective Date of this Agreement and through February 28, 2022, Contractor shall conduct an education campaign focused on informing Customers of the Collection program changes required to comply with new State regulations. At a minimum, Contractor shall perform the activities listed below and shall perform these services in a manner that complies with requirements of this Section 9.4 and 14 CCR, Division 7, Chapter 12, Article 4. 1. Prepare and distribute an initial mailer to all Customers explaining the change from the existing hauler to the new Contractor (if applicable), changes from the existing Collection programs to new programs, Hauler Route changes, dates of program implementation, Recycling and Landfill Disposal reduction programs available, special services available, holiday Collection schedules, proper handling and disposal of Household Hazardous Waste, Contractor’s contact information, and any additional education and outreach information specified in 14 CCR, Division 7, Chapter 12, Article 4. The initial mailer shall be printed and mailed or hand delivered to Customers, and shall also be made available in an electronic format through the Contractor’s website. Contractor may provide a Customer with an electronic version of the initial mailer, rather than a printed version, if specifically requested by the Customer. 2. Prepare a “how-to” flyer describing how to prepare Source Separated Recyclable Materials, SSGCOW, Gray Container Waste, and Mixed Waste for Collection and describe the acceptable materials that can be included in the Blue and Green Containers, as well as non-allowable materials. The flyer should emphasize any new types of Source Separated Recyclable Materials to be included in Blue Containers and the new Food Waste Collection program. Prepare separate flyers for Single-Family, Multi-Family, and Commercial Customers addressing their unique service conditions. The flyers shall be printed and distributed to each Customer, as well as made available in an electronic format through the Contractor’s website. The Contractor shall provide a sufficient number of flyers to each Multi-Family property manager for their distribution to each tenant unit. Contractor may provide a Customer with an electronic version of the flyer rather 51 1645189.1 than a printed version, if specifically requested by the Customer. 3. Prepare printed signage and posters describing Collection programs and distribute to Multi-Family property managers and Commercial Customers for on- site use. 4. Prepare an instructional packet identifying key transition dates and verifying the Customer’s specific current Service Level, which shall be printed and distributed to each Customer and made available in an electronic format on the Contractor’s website. Contractor may provide an electronic version of the instructional packet rather than a printed version, if requested by the Customer. 5. Prepare and distribute public service announcements (PSA) for local newspapers. 6. Meet with up to four (4) business associations (such as the Chamber of Commerce, Rotary Club, and other similar organizations) in separate venues to: educate Commercial Businesses on the Collection programs, State requirements (including SB 1383 and SB 1383 Regulatory requirements) for the City and Generators; answer questions; and, provide service and Rate information. 7. All education material designed and/or distributed by the Contractor shall be submitted to the City Contract Manager for approval prior to distribution or posting on the Contractor’s website. F. Annual and/or Ongoing Education Requirements. 1. Specific Annual Educational Activities a. Annual Notice of Requirements. Not less than once per year during each Rate Year, Contractor shall prepare and distribute to each Generator in the City a mailer that includes information specified in 14 CCR Section 18985.1(a). Such mailer shall be distributed by Contractor to all Residential and Commercial mailing addresses including individual Multi-Family Dwelling Units. Contractor shall also make this notice available in an electronic format through the Contractor’s website. b. Billing Inserts. Upon City request, Contractor agrees to insert and distribute brochures, newsletters, or other information developed by the City as inserts in Contractor’s Customer invoices at no additional charge to the City. Upon City request, Contractor shall be responsible for printing the bill inserts. For Customers receiving electronic bills, Contractor agrees to distribute brochures, newsletters, or other information developed by the City as attachments to Customer invoices at no additional charge to the City. Contractor shall provide electronic bill inserts (or separate email attachments) to Customers who are billed electronically, and paper bill inserts to Customers who receive paper bills. Electronic bill inserts/attachments must be readily available for the Customer to view upon 52 1645189.1 receipt of the invoice (attachments shall not be provided as links). Upon City request for such inserts, Contractor shall comply with such request during its next billing cycle for the targeted Customer group. Contractor shall perform this service with no additional requirement for compensation. c. Multi-Family and Commercial Customer Signage. Contractor shall provide all Multi-Family and Commercial Customers with Source Separated Recyclable Materials, SSGCOW, and Gray Container Waste or Mixed Waste program guidelines, including posters to be placed in Collection areas and enclosures and other community areas at each Premises or building where Discarded Materials are stored. d. Minimum Website Requirements. Contractor shall develop and maintain a website (with a unique URL specific to the City) that is specifically dedicated to the City to provide Generators with detailed service information. The website or webpage shall be accessible by the public, and shall include all education and outreach materials being provided, without requirement for login. Contractor shall update the website regularly so that information provided is current. e. Instructional Service Guide. On or before January 1, 2022, Contractor shall prepare a service guide that describes available services, including how to place Containers for Collection, which materials should be placed in each Container and prohibited materials, and provides Collection holidays and a Customer service phone number. On or before January 1, 2022, the service guide shall be printed and delivered with each set of Containers distributed to a Generator and shall be delivered annually to all Generators. Contractor shall prepare different service guides for Single-Family, Multi-Family, Commercial Generators, and Commercial Edible Food Generators. Contractor shall, at its sole expense, revise, re- print, and redistribute service guides once every three (3) years or at least ninety (90) days prior to a change in the accepted or prohibited materials for any program. Contract shall make the service guide available in an electronic format through the Contractor’s website. Contractor may provide an electronic version of the instructional service guide rather than a printed version, if requested by the Customer. f. Annual Multi-Family Dwelling Unit Notices. Prior to the Commencement Date of this Agreement, Contractor shall obtain and track in its Customer information system(s) the number and addresses of dwelling units at each Multi-Family Premises serviced by Contractor. Contractor shall maintain this database by auditing the data at least once every three (3) years. At least annually, commencing no later than January 1, 2022, Contractor shall prepare and distribute notices to each Multi-Family Dwelling Unit at Multi-Family Premises serviced by Contractor. The annual notices shall be a minimum of two (2) pages (which may include the front and back of a single printed sheet), and shall include information on 53 1645189.1 regulations governing Discarded Materials, Hazardous Waste, and toxic waste; City and State requirements to properly separate Discarded Materials (such as requirements of the Municipal Code and of State statutes and corresponding regulations, including, but not limited to, AB 341, AB 1826, and SB 1383); instructions on properly separating materials; waste prevention; services available; and any other information required by the City or by State regulations (including SB 1383 Regulatory requirements for education, pursuant to 14 CCR, Division 7, Chapter 12, Article 4). As an alternative, Contractor may comply with these requirements through preparation and distribution of an annual newsletter distributed to each Multi-Family Dwelling Unit that provides the same information. Contractor shall make notices and newsletters available in an electronic format through the Contractor’s website. Contractor may provide an electronic version of the notices rather than a printed version, if requested by the Customer. g. Provision of Educational Materials to Non-Compliant Entities. Contractor shall provide educational materials to non-compliant entities under this Agreement, as further described in Section 9.10. h. Education Materials for Property and Business Owners and Tenants. Contractor shall annually provide Property Owners and Commercial Business owners with public education materials for their distribution to all employees, contractors, tenants, and Customers of the properties and businesses. The Contractor’s public education materials shall include, at a minimum, information about Organic Waste recovery requirements and proper sorting of Discarded Materials, and shall reflect content requirements described in Section 9.4.G below. Contractor shall provide the following materials for this purpose: insert materials (such as, but not limited to, welcome packets, flyers, and signs). A Commercial Business or Multi-Family Property Owner may request these materials more frequently than the standard annual provision if needed to comply with the requirement of 14 CCR Section 18984.10 for Commercial Businesses and Multi-Family Property Owners to provide educational information to new tenants and employees before or within fourteen (14) days of occupation of the Premises. In this case, the Commercial Business or Multi-Family Property Owner may request delivery of materials by contacting the Contractor’s customer service department not later than two (2) weeks in advance of the date that the materials are needed. i. Education Requirements for Commercial Edible Food Generators i. On or before February 1, 2022, the Contractor shall develop a list of Food Recovery Organizations and Food Recovery Services operating within the City, maintain the list on the Contractor’s City -specific website, share the list with the City if the City wants to post the list on additional City websites, and update the list annually. The list shall include, at a minimum, the following information 54 1645189.1 about each Food Recovery Organization and each Food Recovery Service: • Name and physical address; • Contact information; • Collection service area; and, • An indication of types of Edible Food the Food Recovery Service or Food Recovery Organization can accept for Food Recovery. ii. At least annually, the Contractor shall provide Commercial Edible Food Generators with the following information: • Information about the City ’s Edible Food Recovery program; • Information about the Commercial Edible Food Generator requirements under 14 CCR, Division 7, Chapter 12, Article 10; • Information about Food Recovery Organizations and Food Recovery Services operating within the City, and where a list of those Food Recovery Organizations and Food Recovery Services can be found; and, • Information about actions that Commercial Edible Food Generators can take to prevent the creation of Food Waste. iii. The Contractor may provide the information required by subsection ii above by including it with regularly scheduled notices, education materials, billing inserts, or other information disseminated to Commercial Businesses. G. Minimum Content Requirements. Prior to February 1, 2022, and annually thereafter, the Contractor shall include the following education and outreach content to Customers by incorporation of this content into the public education materials described in Section 9.4.F. 1. Information on the Generator’s requirements to properly separate Source Separated Recyclable Materials, SSGCOW, Mixed Waste, and Gray Container Waste and place such materials in appropriate Containers pursuant to this Agreement, SB 1383 Regulations, and all other Applicable Law. 2. Information on methods for the prevention of Source Separated Recyclable Materials and SSGCOW generation; managing SSGCOW on Generator’s Premises through composting or other Landfill Disposal reduction activities allowed under 14 CCR Sections 18983.1 and 18983.2; sending SSGCOW to Community 55 1645189.1 Composting operations; and any other local requirements regarding Discarded Materials. 3. Information regarding the methane reduction benefits of reducing the Disposal of SSGCOW, and the method(s) that the Contractor uses to recover SSGCOW. 4. Information regarding how to recover Source Separated Recyclable Materials, SSBCOW, and SSGCOW, and a list of haulers approved by the City. 5. Information related to the public health and safety and environmental impacts associated with the Disposal of SSGCOW and SSBCOW. 6. Information regarding programs for donation of Edible Food; 7. For Commercial Customers, information about the City ’s Edible Food Recovery Collection program; Tier One Commercial Edible Food Generators and Tier Two Edible Food Generators requirements specified in 14 CCR, Division 7, Chapter 12, Article 10; Food Recovery Organizations and Food Recovery Services operating within the City , and where a list of those Food Recovery Organizations and Food Recovery Services can be found; and, information about actions that Commercial Edible Food Generators can take to prevent the creation of Food Waste. 8. Information regarding Self-Hauling requirements. 9. Any other federal, State, or local requirements to properly separate Discarded Materials or other necessary actions by Generators, including applicable requirements of the Municipal Code, AB 341, AB 1826, and SB 1383 and corresponding regulations. H. Material Distribution Methods. Contractor shall use the following methods to provide education information to Customers. All materials are to be approved by the City prior to distribution. 1. Printed materials. Contractor shall provide printed education materials as described in Sections 9.4.E and 9.4.F. The Contractor shall be responsible for the design, printing, and distribution of these materials. All Contractor-printed public education materials shall, at a minimum, use recycled paper and/or be made of recycled material. The Contractor will use 100% post-consumer paper, and procure printed materials from local businesses. 2. Electronic materials and website content. Contractor shall provide electronic and website content for education and outreach materials, which may include, but are not limited to: digital graphics, digital versions of print materials, social media posts, and blog posts. The Contractor shall be responsible for the design, posting, and electronic distribution of these materials. 56 1645189.1 I. Non-English Language Requirements. In accordance with 14 CCR Section 18985.1(e), the Contractor shall make all public education and outreach materials required by this Section available in English and any other non-English language spoken by a substantial number of public provided organic waste collection services within the City by Contractor pursuant to this Agreement. J. Record Keeping and Reporting Requirements. Contractor shall comply with the public education and outreach record keeping and reporting requirements as may be established by the City from time to time. K. Personnel 1. Public Education Outreach Coordinators 2. The Contractor shall designate at a minimum one (1) staff member(s) to serve as Outreach Coordinators. The duties of the Outreach Coordinator(s) shall be focused on public education, community outreach, Commercial and Multi-Family site visits, and technical assistance. The Outreach Coordinator(s) shall educate Customers and Customers’ employees on the importance of Recycling, Food Recovery, resource recovery, Landfill Disposal reduction, as well as all State, federal, County, local, and City mandates, including SB 1383 and SB 1383 Regulations; and shall work with Customers to implement services, increase participation in Source Separated Recyclable Materials and SSGCOW Collection programs, and reduce contamination. The Outreach Coordinator(s) shall identify potential organizations and partners involved with Food Recovery and resource recovery. The Outreach Coordinator(s) shall be responsible for implementing the education plans and programs specified in this Section 9.4. Annually, and upon hiring of new staff, Contractor shall conduct thorough training of all Hauler Route personnel that come into contact with Generators on the Collection program requirements and the accepted and prohibited materials for each material stream for each Customer type. 9.5 Technical Assistance Program A. Organizing and Conducting Direct Generator Outreach. 1. Site Visits and Waste Assessments At least 120 (120) days prior to July 1, 2022 the, Contractor will provide an outreach and technical assistance plan to City for approval identifying the site visit schedule for which to send a Contractor representative to visit each Multi- Family and Commercial Generator’s Premises for the purpose of assessing how much Source Separated Recyclable Materials and SSGCOW is being Disposed; assessing the Source Separated Recyclable Materials and SSGCOW Collection Service Levels needed to meet the requirements of SB 1383 Regulations; and encouraging all Generators to establish Source Separated Recyclable Materials and SSGCOW Collection service in advance of July 1, 2022 or insert earlier date when 57 1645189.1 mandatory service is required. Contractor shall also notify Customers of opportunities to reduce costs by enrolling in Source Separated Recyclable Materials and SSGCOW Collection service and reducing Gray Container Waste/Mixed Waste Collection service. Contractor shall contact Multi-Family and Commercial Customers and provide site visits according to the City -approved schedule. Contractor will also provide a site visit to any Multi-Family and Commercial Generator that requests a site visit, even if it is ahead of schedule. Beginning January 1, 2023, and annually thereafter, Contractor representative shall follow up with Multi-Family and Commercial Generators who are required to participate in Source Separated Recyclable Materials and SSGCOW Collection service under Applicable Law, including but not limited to AB 341, AB 1826, and SB 1383 and corresponding regulations. The Contractor shall ensure that these Generators are participating in the Source Separated Recyclable Materials and SSGCOW Collection Service. If the Generator is not in compliance or not participating, the Contractor representative shall assist the Customers with selecting appropriate Containers and Container sizing, identify acceptable Discarded Materials Collection services as set forth in the Agreement, and attempt to resolve any logistical barriers to providing Source Separated Recyclable Materials and SSGCOW Collection service. Contractor shall provide ongoing, on-site training for Commercial Generators’ staff, including, but not limited to: management, kitchen staff, service employees, and janitorial staff; and Multi-Family Customers’ staff, including but not limited to: the Property Manager, janitorial staff, maintenance, and any other on-site staff members or contractors that handle Discarded Materials. For each on-site waste assessment conducted by Contractor, Contractor shall include documentation of the items listed below. City reserves the right to request Contractor’s documentation of additional information, and shall authorize the format for required information. a. Pictures of material in all Containers; b. Characteristics of the property, business, and Generator type; c. Written recommendations for the appropriate Service Level for each material type; d. Provision of outreach and education materials appropriate to the Generator type; e. Determination of signage placement; f. Determination of any on-going training needs; g. Determination of any access needs; h. Documentation of any special service needs (such as, but not limited to, seasonal Collection service, automated on-call compactor, etc.); and, 58 1645189.1 i. Documentation of records of communications with the Generator. 2. SB 1383 Regulations Assessment Beginning July 1, 2023 and no later than October 1, 2023, the Contractor shall conduct an SB 1383 Regulations assessment for each Multi-Family and Commercial Generator within the Contractor’s Collection service area. Thereafter, Contractor shall conduct an assessment for each new Multi-Family and Commercial Generator within the Contractor’s Collection service area to evaluate Generator’s compliance with SB 1383 Regulations. The assessment shall identify requirements for the regulated entity under SB 1383 Regulations (including, but not limited to, specific requirements for Commercial Edible Food Generators) and assess the current level of compliance with those requirements. All existing Source Separated Recyclable Materials and SSGCOW Disposal reduction programs shall be noted and quantified in the assessment documentation. The Contractor shall identify opportunities for reduced Disposal of Source Separated Recyclable Materials and SSGCOW, including source reduction and Edible Food Recovery. Beginning January 1, 2022, and annually thereafter, Contractor representative shall follow up with all of non-waived Generators required to enroll in Collection service pursuant to the Municipal Code. The Contractor shall ensure that these Generators are participating in Source Separated Recyclable Materials and SSGCOW Collection Service. If the Generator is not in compliance or not participating, the Contractor’s representative shall attempt to resolve any logistical barriers to compliance with City ’s Collection service requirements and assist the Customers with selecting appropriate Service Levels for Discarded Materials. Contractor shall provide ongoing, on-site training for: (i) Commercial Generators’ staff regarding SB 1383 Regulatory requirements, including, but not limited to: management, kitchen staff, service employees, and janitorial staff; and, (ii) Multi- Family Customers’ staff, including, but not limited to: the Property Manager, janitorial staff, maintenance, and any other on-site staff members or contractors that handle Discarded Materials. 3. Workshops, Meetings, and Events Contractor shall, at its sole expense, participate in and/or plan, organize, and conduct direct Generator outreach, including, but not limited to: workshops, community events, and meetings to support Generator compliance with the Source Separated Recyclable Materials and SSGCOW separation and Collection program participation requirements under this Agreement, the Municipal Code, and other local and State statutes and corresponding regulations, including, but not limited to, AB 341, AB 1826, and SB 1383. Contractor shall host at least one (1) technical assistance workshops per calendar year. The workshops shall be open to all residents in the City, and the Contractor shall publish the time and location of the workshop no later than ninety (90) days prior to the workshop through insert publication method(s), such as 59 1645189.1 publication on the Contractor’s website, email newsletter, printed flyers delivered on Hauler Routes, etc. The structure and content of these workshops shall be designed by the Contractor, and submitted at least ninety (90) days prior to the date of the workshop for City approval. At least one (1) of the required technical assistance workshops shall be focused on the requirements of SB 1383 Regulations and any local program or service changes as a result of the regulations. Contractor shall attend two (2) City held events per calendar year. Contractor shall provide at least one (1) staff member(s) to set up a table with educational information and be available on-site to answer technical questions from residents, inform residents of upcoming workshops, and/or schedule meetings, upon request, with individual Generators. By request of a Generator or the City, Contractor shall schedule and conduct an in-person or phone meeting with the Generator to discuss and assess their service needs and compliance with existing and/ or upcoming programs and Applicable Law. The Contractor shall provide additional technical assistance as needed, which may include, but is not limited to site visits and waste assessments. The Contractor shall follow up with the Generator in person or by phone no later than five (5) days after the initial meeting to assess the Generator’s compliance with existing and upcoming programs under this Agreement and Applicable Law. C. Record Keeping and Reporting Requirements. Contractor shall maintain records of all technical assistance activities and educational materials conducted pursuant to this Section and submit reports to the City upon request. 9.6 Food Recovery Program Support A. Hauler Cooperation and Non-Interference with Food Recovery Efforts by Others Contractor shall cooperate with and shall not impede, interfere, or attempt to impede or interfere with the implementation, expansion, or operation of Food Recovery efforts in the City. B. Hauler Involvement in Food Recovery Efforts 1. Hauler Education Contractor shall create and provide educational outreach material for Tier One and Tier Two Commercial Edible Food Generators in accordance with Section 9.6.B. 2. Hauler Identification of Tier One and Tier Two Commercial Edible Food Generators Contractor shall assist in identifing all Commercial Customers that meet the definition of Tier One and Tier Two Commercial Edible Food Generators and provide a list of such Customers to the City, which shall include: Customer name; 60 1645189.1 service address; contact information; Tier One or Tier Two classification; and, type of business (as it relates to the Tier One and Tier Two Commercial Edible Food Generator definitions). Contractor shall update the list and provide it to the City annually. C. Hauler Annual Financial Contribution 1. Payment to City The Contractor shall provide an annual contribution to the City to support the City ’s Food Recovery program efforts, in accordance with Section 9.6.C. 2. Contractor shall invest in Food Recovery Organizations and Food Recovery Services to increase Food Recovery activities through direct funding and in-kind services. Funding and/or in-kind services shall be provided in an amount of $5,000.00 per calendar year or $2,500 per 500 frontload bin generator accounts, whichever is greater. Contractor shall provide a list of the proposed beneficiary organizations to the City Contract Manager for review and approval before any funding or in-kind contribution is provided. The Contractor shall report any such financial support at the City’s request. 9.7 Billing A. General Billing Requirements. 1. Contractor Responsible. Contractor shall bill all Customers and be solely responsible for collecting payment from Customers. Billing shall be performed on the basis of services rendered and this Agreement shall create no obligation on the part of any Person on the sole basis of the Ownership of property. Contractor shall be responsible for collecting bad debt. Individual contracts between Contractor and a Customer for services provided under this Agreement shall be prohibited unless otherwise approved in writing by the City Manager on a case-by-case basis. 2. Bill Inserts. Contractor shall include bill inserts at the request of the City and not less than four times a year. 3. Records. Contractor shall maintain copies of all billings and receipts, each in chronological order, for the Term of this Agreement, for inspection and verification by the City Manager at any reasonable time but in no case more than seven (7) calendar days after receiving a request to do so. B. Waivers. Contractor shall ensure that accurate records of waivers are maintained and Customers are billed properly. C. Application of Contamination Surcharges. In accordance with Section 9.3.1.C, the Contractor is required to assess contamination Processing fees on Customers with repeated occurrences of excess contamination. Any contamination Processing fees to be assessed for a Customer shall be included and itemized on the Customer’s invoice for the 61 1645189.1 billing period in which the Contractor notified the Customer of the assessment of the contamination Processing fee. D. Universal Enrollment Process. City requires that Generators are enrolled in Collection services pursuant to Municipal Code Section 8.12.100. Contractor shall assist the City in ensuring that the enrollment of Generators occurs in a timely and efficient manner. City and Contractor shall cooperatively develop and agree to a process no later than insert date. Contractor shall maintain records and provide reports necessary for the City to verify the City -wide enrollment of Generators. 9.8 Generator Waivers A. City may grant the following waivers to Generators that impact the scope of Contractor’s provision of service for those Customers. Waivers issued shall be subject to compliance with SB 1383 Regulatory requirements, pursuant to 14 CCR Section 18984.11, or other requirements specified by the City. 1. De Minimis Waivers. (Three-, Three-Plus-, and Two-Container Systems Only). The City may waive a Multi-Family’s, Commercial Business’, or its Property Owner’s obligation to comply with some or all of the Source Separated Recyclable Materials and SSGCOW requirements set forth in this Agreement, SB 1383 Regulations, and Section 8.12.470(A) of the Municipal Code if the Multi- Family, Commercial Business, or its Property Owner provides acceptable documentation or the City has evidence demonstrating one of the de minimis conditions applies 2. Physical Space Waivers. The City may waive a Multi-Family’s, Commercial Business’, or its Property Owner’s obligation to comply with some or all of the Source Separated Recyclable Materials or SSGCOW Collection service requirements set forth in this Agreement, SB 1383 Regulations, and Municipal Code Section 8.12.470(B) if the Multi-Family, Commercial Business, or its Property Owner provides documentation, or the City has evidence from its staff, the Contractor, licensed architect, or licensed engineer demonstrating that the Premises lacks adequate space for Blue Containers and/or Green Containers. 3. Third Party or Internal Program Waivers. The City may allow a Contractor’s Customers a waiver from mandatory program services if they can submit evidence of a program that satisfies SB 1383 requirements, and that program is either internally provided or done through a permitted recycler. B. Contractor Waiver Request on Behalf of Generator. Upon reasonable belief that a Generator may qualify for a de minimis, physical space, or Collection frequency waiver, the Contractor may submit a request to the City to grant a waiver to the Generator, provided that adequate evidence of the de minimis, physical space, or Third Party/Internal Program is submitted. 62 1645189.1 C. Contractor Recordkeeping of Generators Granted Waivers. Upon Contractor request, no more than four (4) times per year, the City shall provide Contractor an updated listing of waivers approved by the City, including the Generators’ names, mailing address, service address, and type of waiver. Contractor shall maintain waiver-related records and report on waiver verifications and/or reverifications if requested by City. 9.9 Service Waiver Program Coordination A. Processing Facility Temporary Equipment or Operational Failure Waiver 1. Notification to the City. The Contractor, or their Subcontractor (such as a Facility operator), shall notify the City of any unforeseen operational restrictions that have been imposed upon an Approved/Designated Facility by a regulatory agency or any unforeseen equipment or operational failure that will temporarily prevent an Approved/Designated Facility from Processing and recovering Source Separated Recyclable Materials, SSGCOW, or Mixed Waste. The Contractor or Subcontractor shall notify the City as soon as possible and no later than three (3) business days from the time of the incident. The notification shall include the following: (i) name of Approved/Designated Facility; (ii) the Recycling and Disposal Reporting System Number of the Approved/Designated Facility; (iii) date the Approved/Designated Facility became unable to Process Source Separated Recyclable Materials, SSGCOW, or Mixed Waste; (iv) description of the operational restrictions that have been imposed upon the Approved/Designated Facility by a regulatory agency or unforeseen equipment failure or operational restriction that occurred; (v) the period of time the Contractor anticipates the temporary inability of the Approved/Designated Facility to Process Source Separated Recyclable Materials, SSGCOW, or Mixed Waste; (vi) Contractor’s proposed action plan to deliver materials to an Alternative Facility for Processing or Contractor’s request for waiver to deliver Source Separated Recyclable Materials, SSGCOW, or Mixed Waste to the Approved/Designated Disposal Facility. 2. Use of Alternative Facility or Waiver for Disposal of Materials. Upon notification by Contractor or Subcontractor of an Approved/Designated Facility’s inability to Process materials, City shall evaluate the notification and determine if City shall require Contractor to use an Alternative Facility or allow the Contractor to Transport the Source Separated Recyclable Materials, SSGCOW, or Mixed Waste to the Approved/Designated Disposal Facility for Disposal on a temporary basis for a time period specified by the City. Upon City’s decision, the City shall notify the Contractor of its requirement to use an Alternative Facility for Processing or to use the Approved Disposal Facility for Disposal, and the period of time that the City will allow the Source Separated Recyclable Materials, SSGCOW, or Mixed Waste to be redirected to the Alternative Facility or Approved/Designated Disposal Facility. Pursuant to 14 CCR Section 18984.13, the approved Disposal period shall not exceed ninety (90) days from the date the Approved/Designated Facility’s Processing restriction or failure commenced. In such case, the Contractor must receive written permission from the City Contract Manager prior to depositing 63 1645189.1 any Discarded Material in a Landfill. 3. Record Keeping and Reporting. Contractor shall maintain a record of any Approved/Designated Facility incidents and report this information to the City. D. Disaster Waivers. In the event of a disaster, the City may grant Contractor a waiver of some or all Discarded Materials Collection requirements under this Agreement and 14 CCR, Division 7, Chapter 12, Article 3 in the disaster-affected areas for the duration of the waiver, provided that such waiver has been approved by CalRecycle. E. Removal of Material from Homeless Encampments and Illegal Disposal Sites. The Contractor may, but is not required to, separate or recover Organic Waste that Contractor removes from homeless encampments and illegal disposal sites as part of an abatement activity to protect public health and safety. Contractor shall report to the City the amount of Discarded Materials removed for Disposal from homeless encampments and illegal disposal sites. F. Quarantined Waste. If approved by the City, the Contractor may Dispose of specific types of SSGCOW that are subject to quarantine and meet the requirements described in 14 CCR Section 18984.13(d) for a period of time specified by the City or until City provides notice that the quarantine has been removed and directs Contractor to Transport the SSGCOW to the Approved/Designated Facility(ies) for such material. The Contractor shall maintain records and submit reports to the City regarding compliance agreements for quarantined SSGCOW that are Disposed of pursuant to this subsection. 9.10 Inspection and Enforcement Contractor Performance of Compliance Reviews A. Annual Compliance Reviews 1. General. Contractor shall perform compliance reviews described in this Section commencing January 1, 2023, and at least annually thereafter, unless otherwise noted. 2. Commercial Generator Compliance Reviews. The Contractor shall complete a compliance review of all Multi-Family and Commercial Customers that generate two (2) cubic yards or more per week of Solid Waste, including Organic Waste, to determine their compliance with: (i) Generator requirements under the City ’s Discarded Materials Collection program; and, (ii) if applicable for the Generator, Self-Hauling requirements pursuant to 14 CCR Section 18988.3 and Sections 8.12.050 and 8.12.060 of the Municipal Code, including whether a Multi- Family or Commercial Business is complying through Back-Hauling SSGCOW and/or Source Separated Recyclable Materials and/or SSBCOW. The compliance review shall mean a “desk” review of records to determine Customers’ compliance with the above requirements and does not necessarily require on-site observation 64 1645189.1 of service; however, the City may request that the Contractor perform an on-site observation of service in addition to or in lieu of the desk review if needed to obtain the required information. 3. Annual Hauler Route Review. Beginning in 2022 and annually thereafter, on a date determined by the City Manager, the Contractor shall conduct annual Hauler Route reviews of Commercial, Multi-Family, and Single-Family Generators for compliance with the City’s Discarded Materials Collection program and Container contamination monitoring. These Hauler Route reviews may be performed concurrently with the contamination monitoring Hauler Route reviews, provided that Contractor documents a reasonable sampling of Generators for which compliance with the City ’s Discarded Materials Collection program during the Hauler Route review was assessed. B. Generator Waiver Inspections. In accordance with Section 9.8, Contractor shall verify Multi-Family and Commercial Generator de minimis and physical space constraint waivers, if applicable, at least once every five (5) years from the date of issuance of the waiver. C. Compliance Review Process 1. Number of Reviews. The Contractor shall conduct a sufficient number of compliance reviews, Hauler Route reviews, and inspections of Generators, to adequately determine the Generators’ overall compliance with SB 1383 Regulations, AB 1826, AB 341, and Chapter 8.12 of the Municipal Code. The number of reviews shall be no less than twenty five percent (25%) of Customer accounts in total and/or for each review type and the timeframe, if desired. City reserves the right to require additional inspections, if the City determines that the amount of inspections conducted by the Contractor is insufficient. City may require the Contractor to prioritize inspections of entities that the City determines re more likely to be out of compliance. 2. Non-Compliant Entities. From January 1, 2022 through December 31, 2023, when compliance reviews are performed by Contractor pursuant to Section 9.10.A, Contractor shall provide educational materials in response to violations. Contractor shall provide these educational materials to the non-compliant Customers and Generators within seven (7) business days of determination of non- compliance or immediately upon determination of non-compliance if such non- compliance is determined during an inspection or Hauler Route review. Contractor shall document the non-compliant Customers and Generators and the date and type of education materials provided, and shall report such information to the City. Beginning January 1, 2024, the Contractor shall, in addition to providing the education materials described in this subsection, document non-compliant Customers and Generators determined through Contractor’s compliance reviews pursuant to Section 9.10.A, and shall report all Customers and Generators with violations of SB 1383 Regulations to the City. The City shall be responsible for subsequent enforcement action against the Generators. 65 1645189.1 3. Documentation of Inspection Actions. The Contractor shall generate a written and/or electronic record and maintain documentation for each inspection, Hauler Route review, and compliance review conducted. 9.11 Service Complaints A. Documentation of Complaints. 1. General. The Contractor agrees to maintain a computer database log of all oral and written complaints received by Contractor from Customers or other Persons. Contractor shall be responsible for the prompt and courteous attention to, and prompt and reasonable resolution of, all Customer complaints. Contractor agrees to document and maintain for a period of at least twelve (12) months on a form or log all Complaints registered by Customers and Persons. Contractor shall record complaints received related to SB 1383 Regulatory non-compliance in its log in a manner further described in subsection A.2 below. 2. SB 1383 Regulatory Non-Compliance Complaints. For complaints received in which the Person alleges that an entity is in violation of SB 1383 Regulations, Contractor shall document the information in a form approved by the City and report to the City each SB 1383 Regulatory non-compliance complaint in a monthly summary report of SB 1383 Regulatory non-compliance complaints. B. Investigation of SB 1383 Regulatory Non-Compliance Complaints. 1. Investigation. Contractor shall commence an investigation, within ninety (90) days or insert shorter timeframe if desired of receiving a complaint in the following circumstances: (i) upon Contractor receipt of a complaint that an entity may not be compliant with SB 1383 Regulations and if City determines that the allegations against the entity, if true, would constitute a violation of SB 1383 Regulations; and, (ii) upon City request to investigate a complaint received by City , in which City determines that the allegations against the entity, if true, would constitute a violation of SB 1383 Regulations. Contractor is required to investigate complaints against Customers and Generators, but not against Food Recovery Organizations, Food Recovery Services, and other entities regulated by SB 1383 Regulations. Contractor shall investigate the complaint using one or more of the methods: a. Reviewing the Service Level of the entity that may not be compliant with SB 1383 Regulations; b. Reviewing the waiver list to determine if the entity has a valid de minimis, physical space constraint, or Collection frequency waiver; c. Reviewing the Self-Haul registration list to determine if the entity has registered and reviewing the entities reported Self-Haul information; 66 1645189.1 d. Determining if the entity is located in a Low-Population Area and/or High-Elevation Area; e. Inspecting Premises of the entity identified by the complainant, if warranted; and/or, f. Contacting the entity to gather more information, if warranted. 2. Reporting. Within ten (10) days of completing an investigation of an SB 1383 Regulatory non-compliance complaint, Contractor shall submit an investigation complaint report that documents the investigation performed and recommends to City on whether or not the entity investigated is in violation of SB 1383 Regulations based on the Contractor’s investigation. The City shall make a final determination of the allegations against the entity. 9.12 Provision of Recovered Organic Waste Products Option 1: Bulk Compost Reserved for City Contractor shall make available for City at least one hundred (100) cubic yards of bulk Compost per calendar year for use in City parks and facilities at no cost to the City. City will notify Contractor as to the City’s needs for delivery of finished Compost throughout the calendar year. Contractor shall deliver Compost within forty-eight (48) hours upon request to any accessible location within City limits. If City does not use Compost made available by Contractor by the end of the calendar year, the City no longer retains the right to use that bulk compost allocation that was reserved for that calendar year. Any of the one hundred (100) cubic yards bulk Compost allotment that is not requested by the City during the calendar year shall not carry over into the next calendar year. Upon request, Contractor shall provide City with Compost lab results and specifications. All Compost provided by Contractor must meet or exceed State requirements for Compost quality, including those standards regarding Compost maturity, reduction of pathogens, elimination of weed seeds, and concentrations of physical contaminants such as glass, plastic, metal, and other Non-Organic Recyclables. All Compost provided by Contractor must be suitable for use in landscaping, parks, sports fields, and community gardens, and must be suitable for distribution to the general public, but shall not be required to be certified by the Organic Materials Review Institute (OMRI). Option 2: Bulk Mulch Provided by Contractor to City Contractor shall make available to City at least one hundred (100) cubic yards of bulk Mulch per calendar year for use in City parks and facilities at no additional cost to City. The Mulch shall be approved in advance by the City. The Mulch shall meet all conditions pursuant to the definition of Mulch. The Mulch shall be of a color specified by the City to the extent that the color specified by the City is locally commercially available. City will notify Contractor as to the City’s needs for delivery of finished Mulch throughout the calendar year. Contractor shall deliver Mulch within forty-eight (48) hours upon request of City to any accessible 67 1645189.1 location within City limits at no additional cost to City. If City does not take delivery of Mulch made available by Contractor within thirty (30) calendar days of the end of the calendar year, Contractor’s obligation to deliver Mulch for said calendar year shall be deemed to be satisfied. Any of the one hundred (100) cubic yards bulk Mulch allotment that is not requested by the City during the calendar year shall not carry over into the next calendar year. Option 3: Compost and/or Mulch Distribution Events for Residents At no cost to the City, Contractor shall distribute an annual total of at least five hundred (500) one (1) cubic‐foot bags or other receptacle/unit size of Compost and/or Mulch to City residents at two (2) public Compost distribution events per calendar year (such that Contractor shall provide at least five hundred 500 bags per event). The location, date, and time of such events shall be mutually agreed upon by Contractor and the City Contract Manager and may be held in conjunction with other City approved events. Contractor shall deliver the bagged Compost and/or Mulch to the agreed‐upon event location at no cost to City. Contractor shall provide at least two (2) attendant(s) for at least six (6) hours per event. All Compost provided by Contractor must meet or exceed State requirements for Compost quality, including those standards regarding Compost maturity, reduction of pathogens, elimination of weed seeds, and concentrations of physical contaminants such as glass, plastic, metal, and other Non-Organic Recyclables. All Compost and/or Mulch provided by Contractor must be suitable for use in landscaping, parks, sports fields, and community gardens, and must be suitable for distribution to the general public, but shall not be required to be certified by the Organic Materials Review Institute (OMRI). The Mulch shall meet all conditions pursuant to the definition of Mulch. City may determine if the Compost and/or Mulch shall be given to residents at no charge or if residents shall be charged a fee for the Compost and/or Mulch. If a fee is to be charged, Contractor and City shall meet and confer to discuss the amount of the fee, process for collecting the fee, and use of the revenues received. SECTION 10. MINIMUM STANDARDS FOR CONTRACTOR’S SOLID WASTE HANDLING SERVICE COLLECTION VEHICLES 10.1 General Contractor shall provide vehicles for the Collection of Solid Waste (“Collection Vehicles”) that are sufficient in number and capacity to efficiently perform the work required by this Agreement in strict accordance with its terms. Contractor is expressly obligated to provide such Collection Vehicles and routes as are required to meet the service standards set forth herein. Contractor shall have available on Collection days sufficient back-up vehicles for each type of Collection Vehicle used to respond to complaints and emergencies. Upon or prior to the Effective Date of this Agreement and prior to the start of any extension period of this Agreement pursuant to Section 6, Contractor shall provide City with a report containing the information required under South Coast Air Quality Management District’s Rule 1193(d)(7). Notwithstanding anything in this Agreement to the contrary, the vehicles Contractor utilizes solely for delivery of Bins and for pick-up of Bulky Items shall not be considered “Collection Vehicles”. 68 1645189.1 10.2 Air Quality/Fuel Requirements Contractor’s Collection Vehicles shall comply with all rules and regulations of the South Coast Air Quality Management District, the Air Resource Board, and any other regulatory body that may be in effect during the Term of this Agreement, as well as other federal, state and local laws and regulations that may be enacted during the Term of this Agreement. Contractor’s Collection Vehicles shall meet or exceed such air quality standards as may be adopted by the forgoing regulatory bodies during the Term. Contractor’s Collection Vehicles shall comply with the requirements in the South Coast Air Quality Management District’s Rule 1193. A. Renewable Natural Gas (RNG) Vehicles All Collection vehicles used by Contractor under this Agreement shall be powered by RNG generated by a facility or source approved by CalRecycle to offset City’s procurement responsibilities as specified by SB 1383 Regulations (14 CCR Section 18993.1). Contractor shall comply with this requirement no later than July, 1 2024. Upon City’s request, Contractor shall obtain and provide the City with a written certification by an authorized representative of the publicly-owned treatment works or the wheeling agreement service provider. If there is not a source that meets the SB1383 Regulations (14 CCR Section 18993.1) by July 1, 2024, the Contractor and the City agreed to meet and discuss an alternative compliance path to meet this requirement of the Agreement. 10.3 Specific Requirements Each Collection Vehicle utilized by Contractor in the performance of this Agreement shall meet the following minimum standards: A. Each Collection Vehicle must be fueled by Compressed Natural Gas (“CNG”). B. Each Collection Vehicle must be equipped with an on-board methane detection system capable of detecting methane leaks in the cab of the Collection Vehicle. C. Each Collection Vehicle shall be equipped with a tag axle. D. Each Collection Vehicle shall be registered with the California Department of Motor Vehicles. E. Each Collection Vehicle shall be inspected regularly by Contractor to ensure it meets the requirements of the California Vehicle Code and the California Highway Patrol. Contractor shall provide copies of its Biannual Inspection of Terminal (“BIT”) inspection reports to City within 30 days of its receipt of such reports and shall make all records related to its vehicles, including Contractor’s maintenance records, available to City upon request by the City Manager. F. Each Collection Vehicle shall be equipped with devices capable of covering every open section of the vehicle in which Solid Waste may be placed and, while operating upon the public rights-of-way, shall be covered so as to prevent any Solid Waste from falling or being blown or otherwise dislodged from the vehicle. 69 1645189.1 G. Each Collection Vehicle shall be continuously maintained so as to both: (1) meet the highest industry standards with regards to efforts to prevent liquid from leaking and to the degree possible ensure each Collection Vehicle is “watertight” and “leak-proof” and, (2) at all times comply with the provisions of all laws and regulations including the Vehicle Code and any applicable NPDES permit, with regard to materials leaking from Collection Vehicles. Contractor shall be responsible to promptly clean any spillage or Solid Waste that leaks or otherwise escapes the vehicle. H. As frequently as determined necessary by the City Manager, each Collection Vehicle shall be painted, shall have routine body work performed, and shall be cleaned, so that such vehicles do not become unsightly, as determined by the City Manager. Each vehicle shall be painted with Contractor’s colors and identifying information as required herein. I. Contractor’s name, local or toll free telephone number, and a vehicle number shall be visibly printed or painted in letters not less than five (5) inches in height so as to be legible on both sides of each Collection Vehicle. Any other information or signage printed, painted, or displayed on Contractor’s Collection Vehicles, when such Vehicles are providing Collection services within City Limits, shall be subject to approval by City. J. Each Collection Vehicle shall be maintained in a clean and sanitary condition both inside and out. K. Each Collection Vehicle shall carry a broom, shovel, and operable fire extinguisher, and shall be equipped with a communication device sufficient to allow the driver to communicate directly with Contractor’s dispatcher and/or main office. L. Each Collection Vehicle shall be kept in good repair and working order, and shall be equipped with appropriate safety equipment, including any new safety related technologies that become standard in the waste industry, and at a minimum shall have a video monitor based back-up system, or its equivalent. Contractor shall keep a sufficient supply of replacement parts and equipment on hand to ensure adequate vehicle maintenance and timely and continuous performance of the services contemplated by this Agreement. M. Contractor shall inspect each Collection Vehicle daily to ensure that all equipment is operating properly. Collection Vehicles which are not operating properly shall be removed from service until repaired and operating properly. Contractor shall perform all scheduled maintenance functions upon Collection Vehicles in accordance with the manufacturer’s specifications and schedule. Contractor shall repair, or arrange for the repair of, all of its vehicles and equipment for which repairs are needed because of accident, breakdown or any other cause so as to maintain all equipment in a safe and operable condition. Contractor shall keep accurate records of all Collection Vehicle maintenance and repair, recorded according to date and mileage, including signed verifications that repairs and maintenance has been properly performed, and shall make such records available to City upon request. 70 1645189.1 N. No Collection Vehicle shall be utilized if it is leaking brake, hydraulic, or other fluids, and Contractor shall clean up any leaks or spills from their vehicles per the NPDES permits in effect at the time. No fluids shall be washed into storm drains at any time. All NPDES dry-cleaning measures shall be complied with. All Collection Vehicles must be equipped with absorbent for such cleanup efforts. O. Upon request, Contractor shall furnish City a written inventory of all equipment, including Collection Vehicles, used in providing service pursuant to this Agreement. This inventory shall list all equipment by manufacturer, ID number, date of acquisition, type and capacity. P. Contractor shall utilize Collection Vehicles of a size, weight, nature, and type so as to not be unreasonably intrusive on the community with respect to noise, emissions, maneuverability, safety, and other factors and to avoid or minimize pavement damage and wear and tear of the street or adjacent properties, as approved by the City Manager. Q. Contractor shall not load Collection Vehicles in excess of the manufacturer’s recommendations or limitations imposed by state or local laws or regulations. R. Noise levels of equipment used for Collection shall not exceed 75db (seventy-five decibels) when measured at a distance of twenty-five (25) feet from the vehicle, five (5) feet from the ground; provided, however, in the event there is any conflict with this Section and the noises levels permitted under the City’s Municipal Code, as such may be amended from time to time, the provisions in the City ’s Municipal Code shall apply. Contractor shall submit to City, upon City’s request, a certificate of Collection Vehicle noise level testing, by an independent testing entity, for any Collection Vehicle. Nothing in this Agreement shall be construed as granting Contractor any rights or waivers to violate any Applicable Laws. S. At the start of the Term, all Collection Vehicles shall be less than two (2) years old. It is the intent that the Collection Vehicles placed into service at the start of the Term shall continue to be used throughout the Term. Contractor may, however, at any time during the Term replace the Collection Vehicles currently in use with newer Collection Vehicles. T. All Collection Vehicles used by Contractor to perform Collection services under this Agreement shall be equipped with on-board routing systems capable of tracking vehicle miles traveled (VMT). VMT systems must be capable of generating reports as requested by City. In addition, all Collection Vehicles shall, at a minimum, be equipped with a global positioning system (GPS) and Contractor shall be able to provide evidence of the route location of each Collection Vehicle throughout each service day. City, in its sole discretion, may grant Contractor a waiver of this requirement due to the unavailability of equipment or delays in manufacture; evidence of such unavailability or delay shall be used by City to determine the period for which the waiver shall apply. U. All Collection Vehicles used by Contractor to perform Collection services under this Agreement shall be equipped with “right-hand” monitoring/safety equipment to aid drivers in identifying pedestrians and bikers near the collection vehicle. 71 1645189.1 10.4 Costs of Operation and Damages Contractor shall be responsible for any costs incurred in connection with ensuring all Collection Vehicles comply with all Applicable Laws, including without limitation any such laws and regulations that may now exist or hereinafter be adopted relating to noise, fuels, emission standards, or weight limits. 10.5 City Inspection City may cause or require any Collection Vehicle used in performance of this Agreement to be inspected and tested at any time and in such manner as may be appropriate to determine that the vehicle is being maintained in compliance with the provisions of this Agreement. 10.6 Correction of Defects and Removal of Vehicles from Use within City Contractor agrees to immediately remove from service, and replace or repair, to the City’s satisfaction, any Collection Vehicle which City determines to be of unsightly appearance, unsafe, unsanitary, leaking, out of compliance with any law or regulation or this Agreement, or otherwise in an unsatisfactory operating condition; and any such vehicle shall not be returned to service until the City Manager gives his written consent for its return. SECTION 11. CONTRACTOR’S SOLID WASTE HANDLING SERVICE PERSONNEL 11.1 Uniforms Each of Contractor’s Collection employees shall wear a clean uniform bearing Contractor’s name. Uniforms must be well maintained and in good condition. 11.2 Identification of Employees Contractor shall provide identification badges, cards or similar devices, for all of its employees, and all authorized subcontractors, who may make personal contact with residents of the City. City may require Contractor to notify Customers yearly, or more frequently if determined necessary by City, of the form of said identification. 11.3 Employee List Contractor shall provide a list of current employees and authorized subcontractors to City upon request. 11.4 Driver’s License Each employee operating a vehicle as part of his or her duties shall, at all times, carry a valid operator’s license for the type of vehicle he or she is operating. 72 1645189.1 11.5 Screening of Field Employees Contractor shall make reasonable efforts to determine if its employees working in the field (i.e., drivers of Collection Vehicles, and employees otherwise involved in Collection at Customer Premises) have been convicted of a felony, and shall identify any such employees known to it to City . City shall have the ability to require that any employee so identified by Contractor not work in the field within City. 11.6 Discontinued Use of Unsatisfactory Employees No employee shall continue to have any involvement whatsoever with regard to any work in anyway relating to or arising from this Agreement if City gives notice to Contractor that such employee is determined by City to be discourteous, disorderly, inefficient, unable to communicate effectively with Customers, or otherwise objectionable (provided the term “otherwise objectionable” shall not permit City to “ban” an employee for reasons that violate public policy; and, further, City shall give a reason for requesting the “ban” of any employee from engaging in work related to this Agreement). 11.7 Training and Legal Compliance Contractor shall provide operating and safety training that meets minimum OSHA standards for all personnel, and shall comply with all laws and regulations applicable to its employees and personnel. Contractor shall periodically train employees on all the specific requirements of this Agreement applicable to the employee’s effective performance of his or her duties. Not less than once per calendar year, Contractor shall be required to submit to City a copy of the training material, as well as, record documentation demonstrating the “Agreement-specific” training has occurred. In addition, Contractor shall require that all new employees with duties related to this Agreement receive the above “Agreement-specific” training as part of the orientation process, and Contractor shall provide documentation to City demonstrating said training has occurred. 11.8 Customer Service 18.7.18Office Hours Contractor shall maintain a local office, within 50 miles of City, for communication with the public that at a minimum will be open from 8:00 a.m. to 5:00 p.m. Monday through Friday, holidays excepted. At least one responsible and qualified representative of Contractor, capable of communicating in English and Spanish, shall be present and available during all times that an office is required to be open as noted above (“Office Hours”), for personal communication with the public regarding Billings (including the acceptance of in person Bill payments), complaints, customer service inquiries, etc. and a similarly qualified person shall be available for communication with the public by phone during any times other than Office Hours when Collection is occurring. 11.8.2 Telephone Customer Service Requirements 11.8.3 Toll Free Number 73 1645189.1 Contractor shall maintain a toll free telephone number that rings at an office at all times during Office Hours. Both English and Spanish speaking personnel will be available during Office Hours to assist Customers with telephonic inquiries. Contractor shall have the ability (through the use of outside resources or otherwise) to communicate with Customers who only speak Spanish, Korean, Mandarin Chinese, or Tagalog to ensure their inquiries, questions, complaints and other matters are dealt with in a reasonably timely fashion. All such personnel shall be polite and responsive, and shall be sufficiently knowledgeable, and have the authority to respond and/or advise Customers seeking assistance. Contractor’s telephone system shall be adequate to handle the volume of calls typically experienced on the busiest days. Contractor shall provide City with a 24-hour emergency telephone number to a live person, not voice-mail. 18.7.4 Call Responsiveness Contractor shall make reasonable attempts to answer all phone calls within five (5) rings. If a call has been placed on hold for three (3) minutes, the caller will either be switched to a message center which shall be responsible to obtain the caller’s address and phone number, or a Customer service representative will obtain the Customer’s address and a number at which the call can be returned. Contractor shall make at least three attempts within the next twenty-four (24) hour period to return the call, with the first such attempt not more than one (1) hour after the caller leaves the message. If Contractor is unsuccessful in contacting the Customer after following this procedure, it shall send a letter to the caller indicating its efforts. 18.7.5 Complaint Documentation All service complaints shall be directed to Contractor. Contractor shall log all complaints received and said log shall include the date and time the complaint was received, the name, address and telephone number of the complaining party, a description of the complaint, the name of the employee recording the complaint and the action taken by Contractor to respond to and remedy the complaint. All written Customer complaints and inquiries shall be date-stamped when received. All complaints shall be initially responded to within one (1) business day (Monday through Friday) of receipt. Contractor shall log action taken to respond to and remedy the complaint. Daily logs of complaints shall be retained for a minimum of twenty-four (24) months. All Customer service records and logs kept by Contractor shall be available to City upon request. City shall, at any time during regular Office Hours, have access to Contractor’s Customer service department for purposes that may include monitoring the quality of Customer service or researching Customer complaints. Contractor shall provide to City on a monthly, quarterly, and annual basis, a complaint log, in a form satisfactory to the City, that includes all of the complaints logged pursuant to this Section, the complainant and the resolution. 11.8.6 Resolution of Customer Complaints Disputes between Contractor and its Customers regarding the services provided in accordance with this Agreement may be resolved by the City. The City’s decision shall be final and binding. Intervention by the City is not a condition precedent to any rights or remedies third parties might otherwise have in any dispute with Contractor. Nothing in this Section is intended to affect the remedies of third parties against Contractor. 74 1645189.1 18.7.7 Government Liaison Contractor shall designate in writing a “Government Liaison” who shall be responsible for working with City and/or City’s designated representative(s) to resolve Customer complaints. City shall have the right to approve Contractor’s choice for a liaison. It is anticipated that the Government Liaison will regularly attend City meetings related to Contractor’s performance of the Agreement and City events involving community outreach programs. 11.9 Education and Public Awareness 11.9.1 General Contractor acknowledges and agrees that education and public awareness are critical, key and essential elements of any efforts to achieve the requirements of AB 939 and AB 341. Accordingly, Contractor agrees to exploit opportunities to expand public and Customer knowledge concerning needs and methods to reduce, reuse and recycle Solid Waste and to cooperate fully with City in this regard. 11.9.2 Written Program Materials Contractor shall maintain a program of providing information relevant to the need and the methods to reduce, reuse and recycle Solid Waste, and Contractor upon request from City, may include such information along with bills provided to Customers. All public education materials shall be approved in advance by City, be produced and/or made available in both English and Spanish languages, and bear the City seal unless otherwise approved by City. Contractor shall keep a record of all promotional and public education materials utilized, and shall provide quarterly reports summarizing its public outreach and education efforts. 11.9.3 Public Outreach At a minimum, Contractor shall promote recycling through presentations and educational materials to businesses, business groups, homeowners associations, construction contractors and other civic groups. Contractor shall also provide articles on relevant waste and recycling topics for the City’s website on at least a quarterly basis. 11.9.4 Corrective Action Notice Contractor shall develop a corrective action notification form for use in instances where a Customer sets out inappropriate materials for Collection that explains the appropriate manner for disposal of such items. 11.9.5 Contractor Representative Contractor shall retain on its staff an individual who shall as part of his or her job function routinely visit civic groups, and homeowners’ associations, to promote and explain the Recycling and other programs that Contractor offers, and participate in demonstrations, and civic events. 75 1645189.1 SECTION 12. CONTRACTOR’S CONSIDERATION In addition to any other consideration set forth herein, as part of its consideration for entering this Agreement, and for the exclusive franchise, right and privilege to provide Solid Waste Handling Services within City as specified herein Contractor shall provide the following: 12.1 Reimbursement of Negotiation Costs Concurrently with the execution of this Agreement, Contractor shall pay to City a one-time lump sum payment in the amount of Forty-Five Thousand Dollars ($45,000), to reimburse the City for its actual staff expenses and out-of-pocket costs (including specifically consultant and legal fees) it incurred in connection with the Request for Proposals (“RFP”) process for Solid Waste Handling Services, the negotiation of this Agreement, and ultimate award of this Agreement. 12.2 SB 1383 Regulatory Reimbursement The Contractor shall pay City a Franchise Monitoring and Assistance Fee of Seventy-Five Thousand Dollars ($75,000) to help fund City franchise compliance monitoring and State regulatory compliance efforts. This Franchise Monitoring and Assistance fee shall be payable upon execution of the Agreement, and then annually on January 1st of each successive year. The Franchise Monitoring and Assistance Fee shall be increased annually, starting January 1, 2023, by the percentage change in the Consumer Price Index, calculated in accordance with Section 24.4. 12.3 Franchise Fee Contractor shall pay to City, a franchise fee equal to the greater of ten percent (10%) of Contractor’s annual Gross Receipts each year. Said Franchise Fee shall be paid to City quarterly on or before the last day of the following month. Should any such due date fall on a weekend or holiday in which the City ’s business offices are closed, payment shall be due on the first day thereafter in which the City ’s business offices are open. The amount of each payment shall be equal to ten percent (10%) of Contractor’s Gross Receipts in the calendar quarter preceding the date payment was due. The Franchise Fee due hereunder shall apply to Gross Receipts of Contractor collected after the expiration of the Term hereof relating to Contractor’s performance during the Term hereof. Franchise Fees shall be accompanied by a statement certified by an officer of Contractor attesting to the accuracy of the amounts paid, and setting forth the basis for their calculation in a manner acceptable to City. 12.4 Street Sweeping and Litter Abatement Fee The Contract shall make an annual payment to the City of $125,000 to support the City ’s litter abatement efforts, including but not limited to contracting and administration costs incurred by the City in hiring and overseeing a private firm to provide recurring street sweeping services. This payment is due at contract execution and each successive January 1st throughout the term of this agreement. 12.5 Charitable Community Contribution The Contract shall make an annual payment to the City of $20,000 to support the City’s 76 1645189.1 special events and programming for the community. This payment is due at contract execution and each successive January 1st throughout the term of this Agreement. SECTION 13. CHARGE FOR LATE PAYMENTS In the event Contractor fails to timely make any of the payments provided for in this Agreement (whether reimbursements, Franchise Fees, payments of funds collected in connection with billing services, or otherwise), Contractor shall pay to City, as additional consideration, a sum of money equal to five percent (5%) of the amount due. This amount is required in order to defray those additional expenses and costs incurred by City by reason of the delinquent payment including, but not limited to, the cost of administering, accounting for, and collecting said delinquent payment and the cost to City of postponing services and projects necessitated by the delay in receiving the revenue. In addition, any amounts not paid to City by Contractor within sixty (60) days of the due date shall be subject to interest in the amount of ten percent (10%) per annum, calculated on a daily basis for each day such sums remain past due. CONTRACTOR’S BILLING SERVICES AND SYSTEMS 13.1 Billing Contractor shall provide services pursuant to this Agreement at rates it sets, charges to, and collects from Customers and Responsible Customers; provided, however, Contractor’s rates shall not exceed those set forth in the attached Exhibit A, which sets out the maximum rates that may be charged by Contractor for the various different service options that may occur hereunder, as such maximum rates may be adjusted from time to time pursuant to the terms hereof. Contractor shall provide all Customers, or Responsible Customers, where applicable, with itemized Bills, detailing charges for all services, including charges for late payments, as well as the period of service to which the Bill applies. Contractor acknowledges that it, and not Customers nor Responsible Customers, is to pay a Franchise Fee and the other fees noted herein to City as consideration for this Agreement. Accordingly, Contractor’s Bills shall not include separate itemization of a “Franchise Fee” or other similar designation relating to fees which Contractor is required to pay to City. Billings may be made on a monthly basis for all Customers and Responsible Customers. Premises ordering service after the first of the month or canceling service prior to the end of the month shall be charged on a prorated per-pickup basis. 13.1.1 Suspension of Service Due to Non-Payment Contractor may discontinue service to any Customer, or Responsible Customer, where applicable, as set forth in this Section. Customers or Responsible Customers who have not remitted required payments within sixty (60) days after the date of Billing shall be notified on forms approved by the City Manager. Said forms shall contain a statement that services may be discontinued fifteen (15) days from the date of the notice if payment is not made before that time. If payment is not made by the expiration of said fifteen (15) day period, Contractor must contact City and advise of the delinquency and may discontinue service to that Customer or Responsible Customer, forty-eight (48) hours thereafter with City’s prior consent. Contractor shall resume Solid Waste Collection on the next regularly scheduled Collection day for any Customer or 77 1645189.1 Responsible Customer whose service is discontinued upon receipt of payment of delinquent fees and any related service restart charges in accordance with the maximum rates set forth in Exhibit A, or at such sooner time as directed to do so by City. Contractor may not charge for service during any period in which service was suspended. Any delinquent fees or service charges to be imposed in connection with delinquent accounts shall be set by Contractor and be subject to City Manager approval. A deposit equal to the maximum rate for one month’s service as set forth on Exhibit A, as such rates may be amended from time to time, may be required of accounts which have been discontinued for non-payment prior to re-instituting service at such accounts. Notwithstanding the above, in the event of a Billing dispute and/or to avoid negatively impacting public health or safety, Contractor shall not suspend service to any Customer or Responsible Customer without the City ’s prior consent, and shall continue to provide service to any Customer or Responsible Customer if directed to do so by City without regard to the status of said Customer’s or Responsible Customer’s account. 13.2 Minimum Requirements for Billing Statements Bills shall be prepared and provided in a manner that adequately presents the services rendered in an easy to understand and verifiable format. The format of Contractor’s Bills must be approved by City prior to the commencement of Solid Waste Collection services under this Agreement. City reserves the right to require changes to the Bill format during the Term of this Agreement. In addition to any other pertinent data, Billing statements mailed by Contractor shall be printed to contain the following information, and the language contemplated for compliance with this requirement shall be subject to the City Manager’s approval: A. A “statement date” indicating the date the Bill is generated and mailed. B. A notice to Customers or Responsible Customers that payments are due within thirty (30) days of the statement date, an advisement that the Customer’s or Responsible Customer’s account will become delinquent if payment is not received by the 60th day following the statement date, an advisement of the date and time by which payments must be received in order to avoid delinquent fees (i.e., 4:00 p.m. on the 75th day following the statement date), and a notification of the amount of fees that will be imposed and the potential for service interruptions if payments are not received by the specified date and time. C. An advisement to Customers and Responsible Customers that payment can be made in the following manner: (1) By mailing payment to Contractor at such address as Contractor may designate; (2) By automatic withdrawal from a checking account; (3) By major credit card on-line (i.e., via the Internet); or (4) In person at Contractor’s local office pursuant to Section 11.8.1 by cash, check, credit card or other acceptable forms of payment. 78 1645189.1 D. An advisement that inquiries relating to Solid Waste Collection should be directed to Contractor, including an address, phone number and internet site, for such inquiries. 13.3 Billing System 13.3.1 Computerization of Account Information Contractor shall provide and maintain, at its expense, computer equipment sufficient to operate pertinent computer programs and otherwise provide the services required by this Section. Contractor shall create, at its own expense, computer programs sufficient to operate a computerized billing system, permanently maintain all account records and otherwise meet the requirements of this Section. 13.3.2 Minimum Computer Programming Requirements In addition to any other requirements set forth herein, the programs created by Contractor to operate and maintain the billing system shall at a minimum be able to perform the following functions: A. Create a permanent record of any adjustment to a Customer’s or Responsible Customer’s account; B. Work in connection with a backup system such that all Customer and Responsible Customer account data and records are protected from a computer failure and permanently preserved on not less than a daily basis; and C. Allow Customers or Responsible Customers to make payments on-line (i.e., via the Internet) by a major credit card, automatic withdrawal from a checking account, mail, cash or other acceptable forms of payment. 13.3.3 Billing Inquiries All Billing inquiries shall be entered into the computerized billing system. Contractor’s computer programs shall keep a permanent record of all Billing inquiries and all adjustments to Customer’s or Responsible Customer’s Bills resulting therefrom. 13.4 Payment, Accounting Systems 13.4.1 Collection and Processing of Payments 13.4.1.1 Accounting and Deposit of Funds All payments received by Contractor shall be appropriately credited to Customer and Responsible Customer accounts, deposited in a bank account and accounted for in a businesslike manner utilizing generally accepted accounting principles. To facilitate audits and record keeping Contractor shall make all withdrawals from its bank accounts by check, ACH debit/credit or wire, 79 1645189.1 regardless of whether the withdrawal is to provide funds to City, Contractor, or any permissible subcontractor of Contractor. 13.4.1.2 Allocation of Funds With respect to payments received from each Customer or Responsible Customer, unless a Customer or Responsible Customer specifically directs a different allocation, funds shall be allocated first to outstanding charges for Solid Waste Collection, from oldest to most recent charges, then to any related delinquency fees or service charges, and lastly to other administrative charges, up to the amount of any outstanding balance. Any overpayment shall be credited to future Bills in the same sequence, or returned to Customers or Responsible Customers as appropriate. SECTION 14. FAITHFUL PERFORMANCE 14.1 Surety Contemporaneously with execution of this Agreement, as security for Contractor’s faithful performance of all obligations of this Agreement, Contractor shall provide a surety mechanism (the “Surety”) as more fully defined below in the amount of One Hundred and Fifty Thousand Dollars ($150,000.00). The Surety may be comprised of either a performance bond or an irrevocable letter of credit, or a combination of both. If a letter of credit is utilized to satisfy some or all of the Surety requirement, it shall be drawn upon a financial institution with an office within one hundred (100) miles of City , and otherwise in a form acceptable to the City Attorney. The performance bond, if any, shall be issued by a duly authorized corporate surety company authorized to do business in California, and in a form acceptable to the City Attorney. The cost of the Surety shall be the sole responsibility of Contractor. The Surety shall be released within thirty (30) days after both (i) the expiration of the Term of this Agreement; and (ii) Contractor’s satisfactory performance of all obligations hereunder. 14.1.1 Forfeiture of Surety In the event Contractor shall for any reason become unable to, or fail in any way to, perform as required by this Agreement, City may declare a portion or all of the Surety, as may be necessary to recompense and make whole the City, forfeited to the City. Upon partial or full forfeiture of the Surety, Contractor shall restore the Surety to its original amount within thirty (30) days of the City ’s notice to do so. Failure to restore the Surety to its full amount within thirty (30) days shall be a material breach of this Agreement. 14.1.2 Use of Surety by City Notwithstanding any provision hereof to the contrary, thirty (30) days following City providing Contractor with written notice of its failure to pay City any amount owing under this Agreement, either the letter of credit or performance bond comprising the Surety may be utilized by City for purposes including, but not limited to: (1) Payment of sums due under the terms of this Agreement which Contractor has failed to timely pay to City , including specifically liquidated damages; and (2) Reimbursement of costs borne by City to correct violations of this Agreement not corrected by Contractor. 80 1645189.1 14.2 Cash Bond Contemporaneously with execution of this Agreement, as security for Contractor’s faithful performance of all obligations of this Agreement, Contractor shall also provide City with a cash bond (“Cash Bond”) as more fully defined below in the amount of Fifty Thousand Dollars ($50,000.00). The Cash Bond may be comprised of either a cash deposit or an irrevocable letter of credit, or a combination of both. If a letter of credit is utilized to satisfy some or all of the Cash Bond requirement, it shall be drawn upon a financial institution with an office within one hundred (100) miles of City, and otherwise in a form acceptable to the City Attorney. The cash deposit, if any, shall be deposited in an interest-bearing account at a financial institution with an office within one hundred (100) miles of City that is acceptable to the City Attorney. All interest on a cash deposit, if any, shall accrue to Contractor. Any costs associated with the Cash Bond shall be the sole responsibility of Contractor. The Cash Bond shall be released within thirty (30) days after both (i) the expiration of the Term of this Agreement; and (ii) Contractor’s satisfactory performance of all obligations hereunder. 14.2.1 Forfeiture of Cash Bond In the event Contractor shall for any reason become unable to, or fail in any way to, perform as required by this Agreement, City may declare a portion or all of the Cash Bond, as may be necessary to recompense and make whole the City , forfeited to the City . Upon partial or full forfeiture of the Cash Bond, Contractor shall restore the Cash Bond to its original amount within thirty (30) days of the City ’s notice to do so. Failure to restore the Cash Bond to its full amount within thirty (30) days shall be a material breach of this Agreement. 14.2.2 Use of Cash Bond by City Notwithstanding any provision hereof to the contrary, thirty (30) days following City providing Contractor with written notice of its failure to pay City any amount owing under this Agreement, either the letter of credit or cash deposit comprising the Cash Bond may be utilized by City for purposes including, but not limited to: (1) Payment of sums due under the terms of this Agreement which Contractor has failed to timely pay to City , including specifically liquidated damages; and (2) Reimbursement of costs borne by City to correct violations of this Agreement not corrected by Contractor. 14.3 Replacement Letter of Credit City may draw upon the entire letter of credit (if any) utilized to meet Contractor’s obligations pertaining to the Surety and Cash Bond, and convert it to a cash deposit, if Contractor fails to cause the letter of credit to be extended or replaced with another satisfactory letter of credit no later than sixty (60) days prior to its expiration. SECTION 15. INSURANCE COVERAGE Contractor shall procure and maintain during the entire Term of this Agreement the following types of insurance, and shall maintain the following minimum levels of coverage, which shall apply to any claims which may arise from or in connection with Contractor’s performance hereunder or the actions or inactions of any of Contractor’s officers, agents, representatives, 81 1645189.1 employees, or subcontractors in connection with Contractor’s performance. The insurance requirements hereunder in no way limit Contractor’s various defense and indemnification obligations, or any other obligations as set forth herein. 15.1 Minimum Scope of Insurance Coverage shall be at least as broad as: 1. The most recent editions of Insurance Services Office Commercial General Liability coverage (“occurrence” form CG 00 01). 2. The most recent editions of Insurance Services Office form number CA 00 01 1001 covering Automobile Liability, code 1 “any auto”. 3. Workers’ Compensation insurance as required by the Labor Code of the State of California and Employers Liability insurance. 15.2 Minimum Limits of Insurance Contractor shall maintain in force for the Term of this Agreement limits no less than: 15.2.1 Commercial General Liability Ten Million Dollars ($10,000,000.00) limit aggregate and Five Million Dollars ($5,000,000.00) limit per occurrence for bodily injury, personal injury and property damage. Such limits can be achieved through a combination of primary and excess liability policies. 15.2.2 Automobile Liability Ten Million Dollars ($10,000,000.00) combined limit per accident for bodily injury and property damage. Such limits can be achieved through a combination of primary and excess liability policies. 15.2.3 Workers’ Compensation and Employers Liability Workers’ compensation statutory limits as required by the Labor Code of the State of California and Employers Liability limits of One Million Dollars ($1,000,000.00) per accident. 15.3 Deductibles and Self-Insured Retentions All deductibles or self-insured retentions (i) shall be for the account of Contractor and paid entirely by Contractor without contribution from City, and (ii) shall be declared to City. If, in the reasonable opinion of the City , Contractor does not have sufficient financial resources to protect the City from exposure with respect to any deductibles or self-insured retentions Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. 82 1645189.1 15.4 Other Insurance Provisions The policies are to contain, or be endorsed to contain, the following provisions: 15.4.1 General Liability City and its elected and appointed officials, officers, employees, agents and volunteers shall be named as additional insureds in connection with liability arising out of activities performed by or on behalf of Contractor; Premises owned, leased or used by Contractor. The coverage shall contain no special limitations on the scope of protection afforded to City or its elected and appointed officials, officers, employees, agents and volunteers. As respects the liabilities assumed by Contractor under this Agreement, Contractor’s insurance coverage shall be the primary insurance for the City and its elected and appointed officials, officers, employees, agents and volunteers in connection with the above enumerated categories. Any insurance or self-insurance maintained by City or its elected and appointed officials, officers, employees, agents and volunteers shall be in excess of Contractor’s insurance and shall not contribute with it. Any failure to comply with the reporting provisions of the policies shall not affect coverage provided to City or its elected and appointed officials, officers, employees, agents and volunteers. Coverage shall state that Contractor’s insurance shall apply separately to each insured against whom a claim is made, or suit is brought, except with respect to the limits of the insurer’s liability. 15.4.2 Workers’ Compensation and Employers Liability Coverage The insurer shall agree to waive all rights of subrogation against City and its elected and appointed officials, officers, employees, agents and volunteers for losses arising from work performed by Contractor for City. A Waiver of Subrogation Endorsement must be issued to City by the insurer. 15.4.3 Environmental Pollution Control Insurance Contractor shall maintain either an endorsement to its general liability policy, or a separate policy of insurance covering environmental pollution and contamination that names the City as an additional insured. Said coverage shall be in the amount of not less than One Million Dollars ($1,000,000) per occurrence, and One Million Dollars ($1,000,000) in the aggregate, and shall substantially comply with all other provisions set forth in Section 15.4.1. 15.4.4 All Coverages Except for Worker’s Compensation, each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after thirty (30) days’ prior written notice has been given to City. Additionally, Contractor agrees that it will not suspend, void or reduce in coverage or limits each insurance policy required by this clause without notice to the City. 15.5 Acceptability of Insurers The insurance policies required by this Section shall be issued by an insurance company or companies authorized to do business in the State of California and with a rating in the most recent 83 1645189.1 edition of Best’s Insurance Reports of size category VII or larger and a rating classification of A or better, unless otherwise approved by the City Manager. 15.6 Verification of Coverage Contractor shall furnish City with certificates of insurance and with original endorsements affecting coverage required by this Section. The certificates and endorsements for each insurance policy are to be signed by a Person authorized by that insurer to bind coverage on its behalf. The certificates and endorsements are to be on forms provided by or acceptable to City and are to be received and approved by City before work commences. City reserves the right to require complete, certified copies of all required insurance policies, at any time. 15.7 Loss or Reduction in Insurance In the event that Contractor fails to retain or maintain insurance with the scope and amounts of coverage required hereunder, City shall have the right, but not the obligation to either terminate this Agreement, or obtain insurance coverage as required herein on behalf of Contractor and utilize funds from the Initial Surety and/or Agreement Surety defined in Section 14 to pay the cost of providing such coverage. SECTION 16. ASSIGNMENT, SUBLETTING, AND TRANSFER; REQUIREMENTS AND LIMITATIONS 16.1 General Contractor shall not assign any portion of or all of its rights, nor delegate, subcontract or otherwise transfer any portion of or all of its obligations under this Agreement (collectively referred to as an “Assignment”) to any other Person without the prior approval by the City Council. The City Council has unfettered discretion to approve or deny such an Assignment. The City Council’s exercise of its unfettered discretion may include City Council review and approval of any Assignment terms, including, but not limited to, insurance obligations, indemnification language, bonding requirements, and any and all other terms the City Council may in its unfettered discretion require. Any such Assignment made without the approval by the City Council shall be void and the attempted Assignment shall constitute a material breach of this Agreement. 16.2 Assignment to be Broadly Interpreted For purposes of this Section, the term “Assignment” shall be given the broadest possible interpretation, and shall include, but not be limited to: (i) a sale, exchange or other transfer of substantially all of Contractor’s assets dedicated to service under this Agreement to a third party; (ii) a sale, exchange or other transfer of any membership interest of Contractor to a third party; (iii) any dissolution, reorganization, consolidation, merger, re-capitalization, stock issuance or re- issuance, voting trust, pooling agreement, escrow arrangement, liquidation or other transaction which results in a change of ownership or control of Contractor; (iv) any assignment by operation of law, including those resulting from mergers or acquisitions by or of Contractor or any of its Affiliates, insolvency or bankruptcy, making assignment for the benefit of creditors, writ of attachment for an execution being levied against this Agreement, appointment of a receiver taking possession of Contractor’s property, or transfer occurring in the event of a probate proceeding; (v) 84 1645189.1 any combination of the foregoing (whether or not in related or contemporaneous transactions) which has the effect of any such transfer or change of ownership, or change of control of Contractor; and (vi) Contractor’s subcontracting of only a portion of its rights and obligations under this Agreement (e.g., the In-Home Bulky Item Collection service). 16.3 Nature of Agreement – Personal to Contractor Contractor acknowledges that this Agreement involves rendering a vital service to City ’s residents and businesses, and that City has selected Contractor to perform the services specified herein based on (1) Contractor’s experience, skill and reputation for conducting its Solid Waste Handling Services in a safe, effective and responsible fashion, at all times in keeping with applicable Environmental Laws, regulations and best Solid Waste management practices, and (2) Contractor’s financial resources to maintain the required equipment and to support its indemnity obligations to City under this Agreement. City has relied on each of these factors, among others, in choosing Contractor to perform the services to be rendered by Contractor under this Agreement. 16.4 Procedure for Consideration of Assignment If Contractor requests City ’s consideration of and consent to an Assignment, the City Council may deny, approve or conditionally approve such request in its sole and absolute discretion. Under no circumstances shall City be obliged to consider any proposed Assignment if Contractor is in default at any time during the period of consideration. Should the City consent to any Assignment request, such Assignment shall not take effect until all conditions relating to the City ’s approval have been met Any request for an Assignment shall be made in a manner to be prescribed by the City Manager, and no request by Contractor for consent to an Assignment need be considered by City unless and until Contractor has met (or with respect to matters that would only occur upon completion of the Assignment if approved, made reasonable assurances that it will meet) the following requirements: A. Contractor shall undertake to pay City its reasonable direct and indirect expenses, including administrative, investigative, consulting, and attorneys’ fees and costs necessary to investigate the suitability of any proposed assignee, and to review and finalize any documentation required as a condition for approving any such Assignment (collectively the “Administrative Assignment Fee”). An advance non-refundable payment in an amount to be determined by the City Manager towards the Administrative Assignment Fee shall be paid to the City prior to City ’s consideration of any Assignment request, although Contractor shall be responsible to pay all costs incurred by City in considering a request for Assignment, including those in excess of the aforesaid deposit amount, regardless of whether City consents to the Assignment. B. If requested to do so, Contractor shall furnish City with audited financial statements of the proposed assignee’s operations for the immediately preceding three (3) operating years. C. Contractor shall furnish City with satisfactory proof: (i) that the proposed assignee has at least ten (10) years of Solid Waste management experience on a scale equal to or 85 1645189.1 exceeding the scale of operations conducted by Contractor under this Agreement; (ii) that in the last five (5) years, the proposed assignee has not suffered any significant citations or other censure from any federal, state or local agency having City over its Solid Waste management operations due to any significant failure to comply with state, federal or local laws, including the Environmental Laws and that the assignee has provided City with a complete list of such citations and censures; (iii) that the proposed assignee has at all times conducted its operations in an environmentally safe and conscientious fashion; (iv) that the proposed assignee conducts its Solid Waste management practices in accordance with sound Solid Waste management practices in full compliance with all federal, state and local laws regulating the Collection and disposal of Solid Waste including Hazardous Substances; and, (v) of any other information required by City to ensure the proposed assignee can fulfill the terms of this Agreement in a timely, safe and effective manner. D. The proposed assignee shall execute an agreement assuming all of Contractor’s rights and liabilities under this Agreement. SECTION 17. REVIEW OF SERVICES AND PERFORMANCE 17.1 Performance Hearing A. Commencing on or about January 1, 2023, and on a biennial basis thereafter, City may hold a hearing to review Contractor’s Solid Waste Collection efforts, source reduction, processing and other diversion services and overall performance under this Agreement (the “Solid Waste Services and Performance Review Hearing”). The purpose of the Solid Waste Services and Performance Review Hearing is to provide for a discussion and review of technological, economic, and regulatory changes in Collection, source reduction, recycling, processing and disposal to achieve a continuing, advanced Solid Waste Collection, source reduction and recycling and disposal system; and to ensure services are being provided by Contractor with adequate quality, effectiveness and economy and in full compliance with the terms of this Agreement. Topics for discussion and review at the Solid Waste Services and Performance Review Hearing shall include, but shall not be limited to, services provided, feasibility of providing new services, application of new technologies, Customer complaints, amendments to this Agreement, developments in the law, new initiatives for meeting or exceeding AB 939’s goals and where applicable SB 1383’s goals, regulatory constraints and Contractor performance. City and Contractor may each select additional topics for discussion at any Solid Waste Services and Performance Review Hearing. B. In addition to the Solid Waste Services and Performance Review Hearings City may hold in accordance with the immediately preceding paragraph, if the number of Customer complaints regarding Contractor’s Solid Waste Collection are deemed by City to be excessive or the nature of to be significant, City may, at any time (subject to the paragraph immediately below), hold a Solid Waste Services and Performance Review Hearing. C. City shall notify Contractor of its intent to hold a Solid Waste Services and Performance Review Hearing at least ninety (90) days in advance thereof. The notice will 86 1645189.1 indicate whether the hearing will occur before City staff, the City Council, or such other body as the City may designate in the notice. Forty-five (45) days after receiving notice from City of a Solid Waste Services and Performance Review Hearing, Contractor shall submit a report to City which may contain such information as it wished to have considered, and shall contain the following: (1) Current diversion rates and a report on Contractor’s outreach activities for the past year. (2) Recommended changes and/or new services to improve the City ’s ability to meet the goals of AB 939 and SB 1383 and to contain costs and minimize impacts on rates. (3) Any specific plans for provision of changed or new services by Contractor. D. The reports required by this Agreement regarding Customer complaints shall be used as one basis for review of Contractor’s performance, and Contractor may submit other relevant performance information and reports for consideration at the Solid Waste Services and Performance Review Hearing. In addition to the above, City may request Contractor to submit any other specific information relating to its performance for consideration at the Solid Waste Services and Performance Review Hearing, and any Customer may submit comments or complaints during or before the Hearing, either orally or in writing. Contractor shall be present at and participate in the Solid Waste Services and Performance Review Hearing. SECTION 18. CITY ’S REMEDIES; DEFAULT AND TERMINATION 18.1 Notice of Default If the City Manager determines that Contractor has defaulted in the performance of any obligation hereunder, or that Contractor’s performance pursuant to this Agreement with respect to such matters has not been in conformity with reasonable industry standards which are obtained in similar Cities in Southern California, the provisions of this Agreement, the requirements of the Municipal Code, the requirements of CalRecycle, including, but not limited to, requirements for source reduction and recycling or any other applicable federal, state, or local law or regulation, including but not limited to the laws governing transfer, storage, or disposal of special wastes, or hazardous wastes, the City Manager may provide written notice to Contractor of such default. The City Manager may, in such written notice, set a reasonable time within which correction of such default shall be made. Unless a longer or shorter time is otherwise specified by the City Manager, a reasonable time for correction shall be thirty (30) days from the date such written notice is given. 18.2 Failure to Cure If Contractor fails to correct, to the satisfaction of the City Manager, all deficiencies contained in the written notice thereof within the specified time, or if it is not reasonably possible to correct such deficiencies within the specified time, and Contractor fails to commence to correct or remedy such deficiencies within the specified time and diligently effect such correction or 87 1645189.1 remedy thereafter, then the City Manager may refer the matter to the City Council for review, or review the matter himself. 18.3 Review by City Manager If the City Manager reviews the matter and determines that Contractor has failed to properly or adequately cure any default set forth above, the City Manager, in the exercise of his discretion, may terminate this Agreement, or take such other action as he deems appropriate to pursue any remedy available to City. A decision or order of the City Manager shall be final and binding on Contractor unless Contractor files a “Notice of Appeal” with the City Clerk within five (5) business days of the date the notice of the City Manager’s decision is given. The City Manager shall schedule any appeal for consideration by the City Council no later than the earliest feasible regular City Council Meeting following the date a Notice of Appeal is given to City. 18.4 City Council Review In the event an appeal of a decision of the City Manager is filed, or if the City Manager refers the matter to the City Council without rendering a decision, the City Council shall set the matter for consideration before the City Council as an agenda item at either a regular, adjourned regular, or special meeting. In reviewing the matter, the City Council may consider any information reported by the City Manager regarding the deficiencies, and shall give Contractor, or its representatives and any other interested person, a reasonable opportunity to be heard. The City Council shall determine whether Contractor has failed to properly or adequately perform as set forth above, and if so whether to terminate the Agreement, or to pursue any other remedy available to City. 18.5 Performance During Reviews Contractor’s performance under this Agreement is not excused during any period of time when its performance is under review as set forth above, including at any time prior to a final decision as to whether such performance is deficient. 18.6 Termination without Right to Cure The above right of termination as a result of Contractor’s failure to timely cure any deficiency is in addition to City ’s right to terminate this Agreement without affording Contractor an opportunity to cure in circumstances where Contractor is determined by City to have materially breached this Agreement. City shall thus be afforded the right to terminate this Agreement in the event of any material breach hereof by Contractor without affording Contractor the right to cure as a result of any action, inaction or circumstance which is a legally defined material breach, or is defined herein as a material breach, and/or under any of the following circumstances which are hereby specifically defined as material breaches: A. If Contractor practices, or attempts to practice, any fraud upon City. B. If Contractor becomes insolvent, unable, or unwilling to pay its debts, or upon listing of an order for relief in favor of Contractor in a bankruptcy proceeding. 88 1645189.1 C. If Contractor willfully violates any orders or rulings of any regulatory body having City over Contractor relative to this Agreement. So long as City ’s rights are not prejudiced during the pendency of any challenge to such orders or rulings by Contractor, Contractor may contest any such orders or rulings by appropriate proceedings conducted in good faith, in which case no material breach of this Agreement shall be deemed to have occurred until a final ruling has been rendered. D. If Contractor ceases to provide Solid Waste Handling Services, including Collection of Solid Waste and/or Recyclable Material, as required under this Agreement over all or any portion of the Franchise Area for a period of seven (7) days or more, for any reason not specified as a force majeure event hereunder. E. If Contractor fails to materially comply with any insurance or indemnification requirement set forth in this Agreement. F. If City is required to pay any fine or penalty, which is not paid on its behalf by Contractor or which Contractor fails, refuses, neglects or is unable to pay or indemnify City against, relating to any diversion or other requirement of AB 939 and/or SB 1383. G. If Contractor, Contractor’s shareholders, Contractor’s directors, or any senior management level employee of Contractor (defined for purposes of this provision as any representative of Contractor who regularly is in communication with or regularly has contact with any member of the City Council or City Manager, or any of Contractor’s employees who communicate with any City Department Head or City employee with decision making authority on matters related to the performance of the Agreement) is convicted of a Criminal Matter (as defined herein). For purposes of this Section the term Criminal Matter refers to any felony or misdemeanor offense having any relationship to either Solid Waste Handling Services or public corruption (including, without limitation, bribery, conflict of interest related allegations, vote selling, or any similar type charges). H. If Contractor fails to meet the Recycling Diversion Requirement in Section 8.9.5 for any calendar year under this Agreement. 18.7 Liquidated Damages 18.7.1 General The City finds, and Contractor agrees, that as of the time of the execution of this Agreement, it is impractical, if not impossible, to reasonably ascertain the extent of damages which shall be incurred by City as a result of a breach by Contractor of certain specific obligations under this Agreement. The factors relating to the impracticability of ascertaining damages include, but are not limited to, the fact that: (i) substantial damage results to members of the public who are denied services or denied quality or reliable service; (ii) such breaches cause inconvenience, anxiety, frustration, and deprivation of the benefits of the Agreement to individual members of the general public for whose benefit this Agreement exists, in subjective ways and in varying degrees of intensity which are incapable of measurement in precise monetary terms; (iii) that the services that are the subject of this Agreement might be available at substantially lower costs than alternative services and the monetary loss resulting from denial of services or denial of quality or 89 1645189.1 reliable services is impossible to calculate in precise monetary terms; and (iv) the termination of this Agreement for such specific breaches, and other remedies are, at best, a means of future correction and not remedies which make the public whole for past breaches. 18.7.2 Service Performance Standards; Liquidated Damages for Failure to Meet Standards The parties further acknowledge that consistent, reliable Solid Waste Handling Service is of utmost importance to City and that City has considered and relied on Contractor’s representations as to its quality of service commitment in entering this Agreement with it. The parties further recognize that some quantified standards of performance are necessary and appropriate to ensure consistent and reliable service and performance. The parties further recognize that if Contractor fails to achieve the performance standards, or fails to submit required documents in a timely manner, City and its residents will suffer damages and that it is and will be impractical and extremely difficult to ascertain and determine the exact amount of damages which City will suffer. Therefore, without prejudice to City ’s right to treat such breaches as an event of default, the parties agree that the following liquidated damage amounts represent a reasonable estimate of the amount of such damages for such specific breaches, considering all of the circumstances existing on the date of this Agreement, including the relationship of the sums to the range of harm to City that reasonably could be anticipated and the anticipation that proof of actual damages would be costly or impractical. In placing their initials at the places provided, each party specifically confirms the accuracy of the statements made above and the fact that each party has had ample opportunity to consult with legal counsel and obtain an explanation of the liquidated damage provisions at the time that the Agreement was made. Contractor Initial Here City Initial Here 18.7.3 Calculations for Liquidated Damages Contractor agrees to pay (as liquidated damages and not as a penalty) the amounts set forth below for each type of action warranting such damages: 18.7.3.1 Collection Reliability A. For each failure to commence service to a new Customer account within seven (7) days after order: $200.00. B. For each failure to Collect Solid Waste from any established Customer on the scheduled Collection day and not Collected within the period described in this Agreement which exceed five (5) such failures annually: $200.00. C. For each failure to Collect Solid Waste, which has been properly set out for Collection, from the same Customer on two (2) consecutive scheduled pickup days: $200.00. 90 1645189.1 18.7.3.2 Collection Quality D. For each occurrence of failure to properly return empty Containers to avoid pedestrian or vehicular traffic impediments or to place Containers upright with lids secured which exceeds ten (10) such occurrences annually: $500.00. E. For each occurrence of excessive noise or discourteous behavior which exceeds five (5) such occurrences annually: $500.00. F. For each occurrence of Collecting Solid Waste during unauthorized hours which exceeds five (5) such occurrences annually: $500.00. G. For each occurrence of damage to private property in an amount in excess of $1,000 which exceeds five (5) such occurrences annually: $500.00. H. For each failure to clean up Solid Waste spilled from Containers, excepting amounts that are so nominal in nature that they would not reasonably be expected to be noticed by the driver of a Collection Vehicle, within 90 minutes or in compliance with NPDES requirements, whichever is stricter: $500.00. 18.7.3.3 Customer Responsiveness A. For each failure to initially respond to a Customer complaint within one (1) business day, which exceeds five (5) such occurrences annually, and for each additional day in which the complaint is not addressed: $150.00. B. For each failure to process Customer complaints to City as required herein, which exceeds five (5) such occurrences annually: $200.00. C. For each failure to remove graffiti from Containers or to replace with Containers bearing no graffiti, within twenty-four (24) hours (Sundays and holidays excepted) of a request from City: $150.00. 18.7.3.4 Timeliness of Submissions to City D. Any report shall be considered late until such time as a correct and complete report is received by City. For each calendar day a report is late, the daily liquidated damage amount shall be: (1) Monthly Reports: $100.00 per day. (2) Quarterly Reports: $200.00 per day. (3) Annual Reports: $500.00 per day. 18.7.3.5 Cooperation During Transition with Subsequent Solid Waste Enterprise A. For each day routing information, including billing information and other operating records needed to service premises, is requested by City or any subsequent solid waste 91 1645189.1 enterprise in accordance with Section 29 and is received after City-established due dates, both for preparation of a request for proposals and for any subsequent solid waste enterprise’s implementation of service: $1,000.00 per day. B. For each day delivery of keys, security codes, remote controls used to access garages, gates and bin enclosures, or other means of access to Solid Waste Containers is delayed beyond one (1) day prior to new solid waste enterprise servicing Customers with access issues: $1,000.00 per day. C. For delay in not meeting the requirements from Section 29 in a timely manner, in addition to the daily liquidated damages for breach under Sections 18.7.3.5(A)-(B) above, a one-time charge of: $35,000. 18.7.3.6 Minimum Hauler Recycling Requirements D. For each calendar year, beginning in 2022, in which Contractor fails to meet the guaranteed Recycling Diversion Requirement set forth in Section 8.9.5: $40 for each ton below the tonnage level necessary to meet the Recycling Diversion Requirement. 18.7.4 Process for Assessment of Liquidated Damages A. City may determine the occurrence of events giving rise to liquidated damages through the observation of its own employees or representative or through an investigation of Customer complaints. It is the desire of the parties to work together to avoid the imposition of liquidated damages and accordingly City will endeavor to timely communicate to Contractor any information that it receives which might give rise the imposition of liquidated damages in order to facilitate Contractor’s ability to correct any deficiency, or prevent the recurrence of any conduct for which liquidated damages might eventually be imposed. B. Prior to assessing liquidated damages, City shall give Contractor notice of its intention to do so. The notice will include a brief description of the incident(s)/non- performance. Contractor may review (and make copies at its own expense) all information in the possession of City relating to incident(s)/non-performance. Contractor may, within ten (10) days after receiving the notice, request a meeting with the City Manager. Contractor may present evidence in writing and through testimony of its employees and others relevant to the incident(s)/non-performance. The City Manager will provide Contractor with a written explanation of his or her determination on each incident(s)/non- performance prior to authorizing the assessment of liquidated damages. The decision of City Manager shall be final. C. City may assess liquidated damages for each calendar day or event, as appropriate, that Contractor is determined to be liable in accordance with this Agreement. 18.7.5 Timing of Payment Contractor shall pay any liquidated damages assessed by City within ten (10) days after they are assessed. If they are not paid within the ten (10) day period, City may proceed against 92 1645189.1 any security required by this Agreement to obtain payment, and/or find Contractor in default and exercise its right to terminate this Agreement as set forth herein. SECTION 19. CONTRACTOR’S REMEDIES; ADMINISTRATIVE HEARING 19.1 Administrative Hearing Should Contractor contend that City is in breach of any aspect of this Agreement, it shall give notice to the City Manager requesting an administrative hearing on the allegation. The hearing shall occur as soon as reasonably possible, or on such date as mutually agreed by the parties, and shall be held before an impartial hearing officer to be determined by the City Manager. The hearing officer shall make an advisory ruling on Contractor’s allegations, and suggest a remedy if a breach by City is determined to exist. The hearing officer’s ruling and recommendations shall become final and binding if the parties so agree in writing within thirty (30) days of the date notice of the decision is given to both parties. Otherwise, the hearing officer’s ruling shall have no further force or effect. 19.2 Other Remedies; Claims Contractor shall be entitled to all available remedies in law or equity for City ’s breach of this Agreement; provided, however, Contractor shall not file or otherwise commence any action against City , in law or equity, in any court, until after an administrative hearing as set forth above has been completed, and the above noted thirty (30) day period to accept the hearing officer’s decision has passed, or either City or Contractor has given timely written notice to the other that it will not accept the hearing officer’s decision. 19.3 Actions for Damages As a prerequisite to the filing and maintenance of any action for damages by Contractor against City arising out of this Agreement, Contractor shall present a claim to City, as required by Government Code Section 910 et seq., within thirty (30) days of the date of the occurrence giving rise to the claim for damages. SECTION 20. CITY’S ADDITIONAL REMEDIES In addition to any other remedies set forth herein, City shall be entitled to any or all of the following rights and remedies in the event of a breach of this Agreement by Contractor with respect to its obligations to Collect, transport and/or dispose of Solid Waste, including Recyclable Material, as provided in this Agreement: A. The right to use the waste collection trucks and the carts and bins located at customer premises that Contractor then uses for the purpose of Collecting, transporting, and/or disposing of Solid Waste, including Recyclable Material, pursuant to this Agreement (such trucks, carts and bins being referred to herein as the Franchise Equipment”), for a period not to exceed six (6) months or, if less, until such breach by Contractor is cured. In the case of Franchise Equipment not owned by Contractor, Contractor shall assign to City, to the extent Contractor is permitted to do so under the instruments pursuant to which Contractor possesses such equipment, the right to use and 93 1645189.1 possess the equipment. If City exercises its rights under this Section, City shall pay to Contractor the reasonable rental value of the Franchise Equipment for the period of City ’s possession thereof (although payment may, if appropriate, occur in the form of a setoff against damages otherwise owed by Contractor pursuant to the terms hereof); B. The right to license others to perform the services otherwise to be performed by Contractor hereunder, or to perform such services itself; and C. The right to obtain damages and/or injunctive relief. Both parties recognize and agree that in the event of a breach of this Agreement by Contractor, City will suffer irreparable injury and incalculable damages sufficient to support injunctive relief, to specifically enforce the provisions of this Agreement, and to enjoin the breach hereof. SECTION 21. RIGHTS OF CITY TO PERFORM DURING EMERGENCY 21.1 Provision of Service Should Contractor, for any reason whatsoever, refuse or be unable to provide Solid Waste Handling Services for a period of more than forty-eight (48) hours, and if as a result thereof, Solid Waste should accumulate in City to such an extent or in such a manner that the City Manager finds that such accumulation endangers or menaces the public health, safety, or welfare, City shall have the right, upon twelve (12) hours prior written notice to Contractor, during the period of such emergency, to temporarily take possession of any or all Franchise Equipment of Contractor previously used in providing Collection, transportation, and disposal of Solid Waste and provide, through its own forces or otherwise, Solid Waste Handling Services which Contractor otherwise would be obligated to provide pursuant to this Agreement. Contractor agrees that in such event it shall fully cooperate with City to affect such a transfer of possession for City ’s use. 21.2 Possession of Equipment Contractor agrees, that in the event of circumstances described in Section 21.1 above, City may take temporary possession of and use all of said Franchise Equipment without paying Contractor any rental or other charge. Upon Contractor giving City notice that it is able to resume its normal responsibilities under this Agreement City shall either relinquish possession of all of the above mentioned Franchise Equipment to Contractor. 21.3 Exclusions from Right to Possession of Equipment without Compensation Specifically excluded from the circumstances in which City may possess and utilize Contractor’s equipment without compensation are circumstances in which Contractor fails or refuses to provide Solid Waste Handling Services hereunder for any reason which is not a force majeure event as defined herein. In such circumstances City ’s right to utilize and possess Contractor’s equipment shall be subject to the provisions of the above Section 20. SECTION 22. PRIVACY Contractor shall strictly observe and protect the privacy rights of Customers. Information identifying individual Customers or the composition or contents of a Customer’s Solid Waste 94 1645189.1 stream, or any of the billing information pertaining to any Customers, shall not be revealed to any person, governmental unit, private agency, or company, unless upon the authority of a court of law, by statute, ordinance, or regulation of a governmental agency having City, or upon valid authorization of the Customer. This provision shall not be construed to preclude Contractor from preparing, participating in, or assisting in the preparation of waste characterization studies or waste audits which may be required by AB 939 or this Agreement. Contractor shall not market or distribute, outside the normal course of its business, mailing lists with the names and addresses of Customers. The rights afforded Customers pursuant to this Section shall be in addition to any other privacy right afforded Customers pursuant to federal or state law. SECTION 23. REPORTS AND ADVERSE INFORMATION The parties acknowledge that City will require reporting at various intervals by which information important to City can be complied and analyzed. Throughout the Term the parties agree to work together to address City ’s needs with respect to the information to be contained in reports prepared by Contractor. The following is intended as a starting point in order to have established an objective baseline for reporting, but the frequency and content of the reports called out below may be changed by agreement of the parties; provided any such change is approved by the City Manager in writing. Monthly reports shall be submitted within twenty (20) calendar days after the end of the report month. Quarterly reports shall be submitted within twenty (20) calendar days after the end of the calendar quarter. 23.1 Monthly Reports At a minimum, Contractor shall report the following to City on a monthly basis: Solid Waste Collected by Contractor for each month, sorted by type of Solid Waste in tons broken down at a level acceptable to City (which at a minimum shall include: refuse, Green Waste, e-waste and universal waste item counts, types of recyclables including PET, HDPE, mixed plastics, aluminum, cardboard, mixed paper, sand, and concrete), as well as by customer type (i.e., single family, multi- family, commercial, roll-off, curbside, etc.); the facilities where all Solid Waste Collected was processed or disposed; a list of all missed pick-ups; a list of the records related to non-collection notices; warning notices issued for contaminated Recyclable Materials, and Green Waste Containers (if applicable); and a narrative summary of problems encountered (including scavenging) and actions taken with recommendations for City , as appropriate. Contractor shall also provide a detailed list of all In-Home Bulky Item Collections including, at a minimum, Customer name, Customer address, Customer telephone number, date(s) of service, and a description of each item Collected. 23.2 Quarterly Reports At a minimum, Contractor shall report the following to City on a quarterly basis: the information required in the monthly reports; the complaint summary for the quarter summarized by nature of complaints; copies of promotional and public education materials sent during the quarter; description of Contractor outreach activities conducted the previous quarter; report of the number of Customers participating in Recycling Collection services, a narrative description of problems encountered and actions taken with respect to scavenging, and such other information or reports that the City may reasonably request or require. Contractor shall, upon demand by City, 95 1645189.1 provide true and accurate copies of landfill tipping receipts, records showing delivery at processing or reuse facilities, and similar such documents in order to enable City to verify Contractor’s quarterly reports. 23.3 Annual Reports Within 30 days of the end of each calendar year during the Term of this Agreement and within thirty (30) days after the end of the Term, Contractor shall submit a written annual report, at its sole expense, in a form approved by City , which includes, but is not limited to, the following information: A. A summary of the previous year’s activities including, but not limited to, services begun or discontinued during the reporting year, and the number of Customers broken down on a monthly basis; B. A summary of the total tons of Solid Waste Collected in City in the preceding year as well as a summary of the total tonnage diverted from the State’s landfill systems during that time frame; C. Information and reports required by City to meet its reporting obligations imposed by AB 939 and the regulations implementing AB 939, in a form and content approved by the City Manager; D. A revenue statement, certified by the chief financial officer of Contractor, setting forth Franchise Fees paid and the basis for the calculation thereof, including specifically a breakdown of sources of revenue included in Gross Receipts and the amount of revenue derived from each such source comprising Gross Receipts; E. A list of Contractor’s officers and the members of its Board of Directors, or as applicable a list identifying all Persons holding a membership interest in Contractor; F. A list of stockholders or other equity investors holding five percent (5%) or more of the interest in Contractor; and G. A list of each service address or other identifying location associated with each Customer’s or Responsible Customer’s account, the total number of Carts at each such address or other identifying location, types of services being Billed and the serial numbers associated or other identifying information associated with each Cart at such address as required by Section 8.7.7. H. A list of Customers or Responsible Customers who elect not to receive a Recycling Cart, including contact information, reasons, and the locations thereof. 23.4 Format of Reports Each monthly, quarterly, and annual report shall be submitted to City, addressed to the City Manager or his or her designee. Records related to performance of this Agreement shall be maintained by Contractor in forms and by methods that facilitate flexible use of data contained in 96 1645189.1 them to structure reports, as needed. The format of each report shall be approved by City. Contractor agrees to submit all reports to e-mail addresses designated by City in an electronic format approved by the City, compatible with City’s software/computers at no additional charge. 23.5 Adverse Information A. Contractor shall provide City two copies of all reports and other material adversely affecting this Agreement submitted by Contractor to the United States Environmental Protection Agency, CalRecycle, the California Regional Water Quality Control Board, and any other federal, state, regional, or local regulatory agency. Copies shall be submitted to City simultaneously with Contractor’s filing of such matters with said agencies. Contractor’s routine correspondence to said agencies need not be automatically submitted to City , but shall be made available to City upon written request. B. Contractor shall submit to City copies of all pleadings, applications, notifications, communications, and documents of any kind submitted by Contractor to, as well as copies of all decisions, correspondence, and actions by, any federal, state, and local courts, regulatory agencies, and other government bodies relating in any manner to Contractor’s performance of services pursuant to this Agreement. To the degree authorized by law, any confidential data exempt from public disclosure shall be retained in confidence by City and its authorized agents and shall not be made available for public inspection. C. Contractor shall submit to City such other information or reports in such forms and at such times as City may reasonably request or require. D. All reports and records required under this or any other Section hereof shall be furnished at the sole expense of Contractor. 23.6 Disaster Plan Within ninety (90) days of the Effective Date, Contractor shall prepare a draft disaster debris cleanup implementation plan that sets forth procedures for collection of debris following a major disaster such as an earthquake, mudslide, storm, flood, fire, terrorist attack, riot, civil disturbance or other similar event. The disaster plan shall address priorities for cleanup at critical facilities, procedures for reimbursement for costs, describe communication plans, list key contact persons, and provide maps showing proposed sites for stockpiling of disaster debris that cannot be transported to the landfill. Contractor shall coordinate the plan with City’s emergency service teams and private parties, as necessary. The draft plan shall be presented to the City Manager for consideration and approval. The final plan shall be distributed to those employees of Contractor and City and private parties who would have a role in implementing such plan in the event of a disaster. In addition to the disaster debris cleanup implementation plan, Contractor shall: (1) assist City in the event of a major disaster by providing Collection Vehicles and drivers normally assigned to City at rates which do not exceed the maximum rates set forth on Exhibit A; and (2) , upon request and at no additional charge, provide to City at City Hall or other locations designated by the City Manager, up to ten (10) Bins and/or Roll-off Boxes, with the quantity and size to be designated by City , for use as emergency containers to store emergency materials and supplies. 97 1645189.1 23.7 Failure to Report The refusal of Contractor to file any of the reports required, or the inclusion of any materially false or misleading statement or representation made knowingly by Contractor in such report shall be deemed a material breach of the Agreement, and shall subject Contractor to all remedies, legal or equitable, which are available to City under this Agreement or otherwise. SECTION 24. COMPENSATION 24.1 Contractor Rates Contractor shall provide services to Customers pursuant to this Agreement at rates it sets, charges to, and collects from Customers, which rates shall not exceed those set forth in the attached Exhibit A, which sets out the maximum rates that may be charged by Contractor, as such maximum rates may be adjusted from time to time pursuant to the terms hereof. The maximum rates set forth in Exhibit A are inclusive of all services to be provided, including transportation, disposal, and Container costs, and no other charges shall be imposed by Contractor for such services. 24.2 Resolution of Disputes Regarding Rate Adjustments Any dispute regarding an adjustment to the maximum rates Contractor may charge, or the computation thereof, shall be decided by the City Manager. The rates in effect at the time such dispute is submitted to the City Manager shall remain in effect pending resolution of such dispute. The effective date of the adjusted maximum rate following the resolution of any such dispute, whether retroactive or prospective, shall be determined by the City Manager. 24.3 Annual Consumer Price Index Adjustments Commencing on July 1, 2023 the maximum rates as set forth in Exhibit A shall be adjusted, and such rates shall be adjusted annually thereafter on each subsequent July 1st during the Term hereof (the “Adjustment Dates”), by multiplying each rate by Consumer Price Index (“CPI”) for All Urban Consumers, CUURA421SA0 not seasonally adjusted, all items index (CPI-U) – Los Angeles-Long Beach-Anaheim area for the twelve (12) month period ending the December immediately prior to the applicable Adjustment Date versus the index average for the previous twelve months. The first rate adjustment under the Agreement will be approved on July 1, 2023 and shown on the Customer’s invoice, however the Contractor will provide a credit on the invoice in the amount of the July 1, 2023 monthly increase for the months of July 2023 through December 2023 in order to fulfill the Contractor’s commitment to the proposed two (2) year rate guarantee. All future rate increases starting with July 1, 2024 will be implemented per the criteria listed above in this Section 24.3. At least ninety (90) days prior to charging Customers any rate increased due to an increase in the CPI, Contractor shall obtain the City Manager’s approval to do so. The City Manager shall approve such a request unless it is determined, based upon substantial evidence, that the requested adjustment to the maximum rate does not meet the requirements as set forth herein. It is anticipated that to obtain City Manager’s approval of Contractor’s requested rate increase, Contractor shall provide all necessary information to justify the request. City will make an effort to verify information provided by Contractor, but ultimately Contractor bears the burden 98 1645189.1 of ensuring the submitted information is correct and supported by all necessary documentation. Contractor agrees and acknowledges that City is entitled to rely, in good faith, on information submitted by Contractor, including mathematical calculations, CPI data, and other documentation, to justify Contractor’s requested rate increase. In the event that there are errors in Contractor’s requested rate increase request, including, but not limited to, an inaccurate rate adjustment request, inaccurate application of the rate increase formula described above, or usage of inaccurate data, Contractor acknowledges and agrees that City is entitled to seek recovery of damages on behalf of the public or impose future rate reductions to compensate for the errors. Contractor also waives any arguments or defenses Contractor now has or may have in the future, including estoppel, waiver, or other similar equitable remedies, with respect to any action, claim, demand, proceeding or suit in law or equity of any and every kind and description brought by or on behalf of City or Customers due to errors in Contractor’s requested rate increase. 24.4 Limitations to Annual CPI Adjustments Notwithstanding anything to the contrary in Section 24.3 above, the maximum annual adjustment occurring pursuant to Section 24.3 shall be limited by the provisions set forth below. 24.4.1 Five Percent (5%) Cap Any maximum rate may not be increased in any given year by more than five percent (5%) without regard to any higher increase which may otherwise be justified by the formula set forth in Section 24.3. In the event an increase exceeds the five percent (5%) cap, the un-applied percentage may not be rolled forward and applied to maximum rate increases in subsequent years. 24.4.2 Compliance with Agreement No increase to the maximum rates shall occur if the City Manager determines that Contractor did not substantially comply with all terms of this Agreement in the Rate Year preceding the increase, including without limitation, provisions hereof relating to reporting, diversion, and Customer service standards. 24.5 Discretionary Adjustments Contractor may request an adjustment to the maximum rates set forth in Exhibit A at reasonable times other than as set forth in Section 24.3 for unusual changes in the cost of providing service under this Agreement. For each request for an adjustment to the maximum rates brought pursuant to this Section, Contractor shall prepare a schedule documenting the extraordinary costs. Such request shall be prepared in a form acceptable to City with support for assumptions made by Contractor in preparing the estimate. The City Council shall review Contractor’s request and, in the City Council’s sole judgment and absolute, unfettered discretion, make the final determination as to whether an adjustment to the maximum rates will be made, and, if an adjustment is permitted, the appropriate amount of the adjustment. The City Council may consider increases or decreases in Contractor’s total revenues and total cost of services when reviewing an extraordinary rate adjustment request. Contractor may not request an extraordinary increase in the maximum rates as a result of: changes in fees or taxes such as Social Security, disability or income tax; changes in health care costs, including increases to the cost of health insurance or changes to the requirements for health insurance; changes in the market value of Recyclables or processing costs 99 1645189.1 for Recyclables or Green Waste; inaccurate estimates by Contractor of its cost of operations; or costs of compliance with South Coast Air Quality Management District and Air Resource Board rules and standards for Collection Vehicles. An advance non-refundable payment of Five Thousand Dollars ($5,000.00) shall be paid to City prior to City’s consideration of each of Contractor’s requests for an adjustment of the maximum rates pursuant to this Section. SECTION 25. IDENTIFICATION OF CONTRACTOR Contractor has agreed to use the name “Universal Waste Systems” identify itself to the public as the specific organization that shall provide all services under this Agreement. Unless otherwise approved in writing by City, this name shall be used for all correspondence, Billing statements, directory listings, references, signs, and vehicle and Container identification. SECTION 26. CITY ’S FLOW CONTROL OPTION/COUNTY AGREEMENT 26.1 Flow Control Option City shall have the absolute ability to choose the location for the delivery and/or disposal of all Solid Waste (including Recyclable Material, Organic Waste, Green Waste, and construction and demolition waste) Collected pursuant to this Agreement (hereinafter City ’s “Flow Control Option”). Contractor expressly consents to City’s ability to direct the location for disposal of Solid Waste hereunder, and waives any and all rights to challenge City’s ability to do so, including without limitation any rights under the Commerce Clause of the United States Constitution. As of the Effective Date, City shall be deemed to have exercised its Flow Control Option so as to require delivery of all Solid Waste Collected hereunder to the Orange County landfill system in a manner consistent with its obligations under the County Agreement (including, without limitation, its obligations related to Solid Waste that is delivered to a processing/transfer facility prior to being delivered to a landfill for disposal), and Contractor has agreed to handle all Solid Waste Collected hereunder in a manner consistent with City’s exercise of its Flow Control Option as noted above. At any time during the Term of this Agreement the City Manager may notify Contractor in writing that City no longer desires to exercise its Flow Control Option. In the event City so notifies Contractor of its desire to cease exercising its Flow Control Option, Contractor shall have the absolute discretion to utilize any disposal facility, transfer station, recycling facility, material recovery facility, landfill, or other facility of its choosing to retain, recycle, process, and dispose of Solid Waste generated within the City, provided the use of such facility by Contractor enables it to meet all other requirements of this Agreement. City hereby confirms and agrees that it does not desire to, and will not, exercise its Flow Control Option with respect to source-separated Organic Waste, and that Contractor may process all source-separated Organic Waste at a properly permitted facility located in Los Angeles County or any city therein provided this processing activity is approved by CalRecycle and achforieves required compliance for the City. 26.2 County Agreement Contractor expressly acknowledges its awareness of the County Agreement which has been adopted and entered into by City. Moreover, Contractor acknowledges that it has had an opportunity to review the County Agreement, and is aware of the provisions thereof that require all Solid Waste collected in the City Limits to be disposed of in the Orange County landfill system. 100 1645189.1 Contractor further acknowledges that the County of Orange is an intended third party beneficiary of Contractor’s obligations relating in any way to the disposal of Solid Waste pursuant to this Agreement and the County Agreement. Contractor hereby adopts as its obligations hereunder such provisions of the County Agreement that require action or inaction by it as City’s Solid Waste franchisee. Contractor represents and warrants that it can and will perform its duties in connection with this Agreement in such a manner as to ensure that City does not breach the terms of the County Agreement as a result of Contractor’s actions or inaction. In the event City advises Contractor in writing that the County Agreement has been terminated, or that it no longer wishes to exercise its Flow Control Option in a manner consistent with the County Agreement, then Contractor’s obligations pursuant to this paragraph shall be terminated. SECTION 27. INDEMNIFICATION 27.1 General A. Contractor hereby agrees to and shall indemnify and hold harmless City , its elected and appointed officials, officers, employees, agents, and volunteers (collectively the “Indemnities”) from and against any and all loss, liability, penalty, forfeiture, claim, demand, action, proceeding or suit in law or equity of any and every kind and description (including, but not limited to, injury to and death of any Person and damage to property, or for contribution or indemnity claimed by third parties) arising out of, resulting from, and/or in any way connected with this Agreement including: (1) the negligence or willful misconduct of Contractor, its officers, employees, agents, and/or subcontractors in performing services under this Agreement; (2) the failure of Contractor, its officers, employees, agents, and/or subcontractors to comply in all respects with the provisions of this Agreement, all Applicable Laws (including, without limitation, the Environmental Laws), ordinances and regulations, and/or applicable permits and licenses; (3) the acts of Contractor, its officers, employees, agents, and/or subcontractors in performing services under this Agreement for which strict liability is imposed by law (including, without limitation, the Environmental Laws); and (4) any challenge to the award of, or any provisions of this Agreement (including any claim that the application of any provision hereof violates any provision of the California Constitution). The foregoing indemnity and hold harmless provisions shall apply regardless of whether such loss, liability, penalty, forfeiture, claim, demand, action, proceeding, suit, injury, death or damage is also caused in part by any of Indemnities’ negligence, but shall not extend to matters resulting from Indemnities’ sole negligence, or willful misconduct. Contractor further agrees to and shall, upon demand of City , at Contractor’s sole cost and expense, defend (with attorneys acceptable to City ) City , its elected and appointed boards and commissions, officers, employees, and agents against any claims, actions, suits in law or equity or other proceedings, whether judicial, quasi-judicial or administrative in nature, arising or resulting from any of the aforementioned events, and to reimburse City for any and all costs and expenses City incurs in providing any such defense, either before, during or after the time Contractor elects to provide such defense, including any and all costs incurred in overseeing any defense to be provided herein by Contractor. B. Contractor, upon demand of City , made by and through the City Attorney, shall protect City and appear in and defend City and its elected officials, officers, employees and 101 1645189.1 agents, in any claims or actions by third parties, whether judicial, administrative or otherwise, including, but not limited to disputes and litigation over the definitions of “Solid Waste” or “Recyclable Material,” the scope of the rights granted herein, conflicts between the rights granted herein and rights asserted by other Persons, or the limits of City ’s authority with respect to the grant of licenses, or agreements, exclusive or otherwise, asserting rights under the Dormant Commerce Clause or any other federal or state laws to provide Collection services in the City . C. The provisions of this Section shall not terminate or expire, shall be given the broadest possible interpretation, and shall survive the expiration or earlier termination of this Agreement. 27.2 Hazardous Substances Indemnification A. Without regard to any insurance coverage or requirements, and without limiting the above general indemnification obligation in any way, Contractor specifically agrees to and shall, to the maximum extent permitted by law, defend (with counsel acceptable to City ) reimburse, indemnify, and hold City and its past and present officers, council members, employees, consultants and agents (hereinafter “Indemnified Parties”) harmless from and against any and all claims, actions, liabilities, damages, demands, judgments, losses, costs, liens, expenses, suits, actions, attorneys’ fees, consultant fees, penalties and any and all other losses, damages, fees and expenses of whatever kind or nature (“Claims”) (including but not limited to response costs, investigative costs, assessment costs, monitoring costs, treatment costs, cleanup costs, removal costs, remediation costs, and similar costs, damages and expenses) that arise out of or are alleged to arise out of or in any way relate to any action, inaction or omission of Contractor that: (1) results in any demand, claim, notice, order, or lawsuit, asserting that any Indemnified Party is liable, responsible or in any way obligated to investigate, assess, monitor, study, test, treat, remove, remediate, or otherwise cleanup, any Hazardous Contaminant (as defined herein); or (2) relates to material Collected, transported, recycled, processed, treated or disposed of by Contractor. B. Contractor’s obligations pursuant to this Section shall apply, without limitation, to: (1) any Claims brought pursuant to or based on the provisions of the Environmental Laws, including without limitation the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), 42 U.S.C. § 9601 et seq., the Resource Conservation and Recovery Act (“RCRA”), 42 U.S.C. § 6901 et seq., the Carpenter-Presley-Tanner Hazardous Substances Account Act (California Health & Safety Code Sections 25300 et seq.), the California Hazardous Waste Control Laws (California Health and Safety Code Sections 25100 et seq.), the California Porter-Cologne Act (California Water Code Section 13000 et seq.), and any and all amendments and regulations thereto, and 102 1645189.1 any other federal, state, regional or local environmental statutory or regulatory provision; (2) any Claims based on or arising out of or alleged to be arising out of the ownership, use, lease, sale, design, construction, maintenance or operation by Contractor of any facility; (3) any Claims based on or arising out of or alleged to be arising out of the marketing, sale, distribution, storage, transportation, disposal, processing or use of any materials recovered by Contractor; and (4) any Claims based on or arising out of or alleged to be arising out of any breach of any express or implied warranty, representation or covenant arising out of or in connection with this Agreement. C. The foregoing indemnity and defense obligations shall apply irrespective of the negligence or willful misconduct of Contractor or any Affiliate of Contractor. D. For purposes of this Agreement, the term “Hazardous Contaminant” shall mean any “hazardous material,” as that term is defined under California Health & Safety Code Section 25501(n); any “hazardous substance,” as that term is defined herein or under California Health & Safety Code Sections 25281(h), 25501(n), 25501.1 and under Title 42, Section 9601(14) of the United States Code; any “hazardous waste,” as that term is defined herein and under Title 42, Section 6903(5) of the United States Code and under California Health & Safety Code Section 25501(n); any chemical which the Governor has identified as a chemical known to the State to cause cancer or reproductive toxicity pursuant to California Health & Safety Code Section 25249.8; any crude oil or refined or unrefined petroleum product or any fraction or derivative thereof; and any asbestos or asbestos- containing material. The term “Hazardous Contaminant” shall also include any and all amendments to the above-referenced statutory and regulatory provisions made before or after the date of execution of this Agreement. E. The provisions of this Section shall not terminate or expire, shall be given the broadest possible interpretation, and shall survive the expiration or earlier termination of this Agreement. F. With regard to any claim covered by this provision arising from the delivery of Solid Waste to the Orange County landfill system pursuant to the terms of the County Agreement, the indemnity provisions hereof are intended to be supplemental to any indemnification obligations owed to the City by the County of Orange pursuant to the County Agreement. SECTION 28. CONTRACTOR’S BOOKS AND RECORDS; AUDITS 28.1 Maintenance and Inspection of Records Contractor shall maintain all records relating to the services provided hereunder, including but not limited to Customer lists, billing records, accounts payable records, maps, AB 939/SB 1383 103 1645189.1 compliance records, records reflecting the number of refuse, recycling and organics routes and route hours by service category (such as residential, multi-family, commercial, roll-off, and special services), records demonstrating facilities, equipment and personnel used to perform services, records reflecting the number of refuse, recycling and organics Containers in service by frequency of Collection for each customer group (such as single family, multi-family, commercial, roll-off); records reflecting the number of roll-off box pulls, and such other documents and materials which reasonably relate to Contractor’s compliance with the provisions of this Agreement (the “Records”), for the full Term of this Agreement, and an additional period thereafter of not less than three (3) years, or any longer period required by law. City shall have the right, upon five (5) business days advance notice, to inspect the Records. Such Records shall be made available to City at Contractor’s regular place of business, but in no event outside the County of Orange. Prior to destruction of records relating to the services provided pursuant to this Agreement, Contractor shall provide copies or originals of such records to City. 28.2 CERCLA Defense Records City views the ability to defend against the Comprehensive Environmental Response, Compensation and Liability Act and related litigation as a matter of great importance. For this reason, the City regards the ability to prove where Solid Waste Collected in the City was taken for Disposal, as well as where it was not taken, to be matters of concern. Contractor shall maintain data retention and preservation systems which can establish where Solid Waste Collected in the City was landfilled (and therefore establish where it was not landfilled) for not less than five (5) years following the termination of this Agreement, and agrees to notify City ’s City Manager, City Clerk and City Attorney before destroying such records thereafter. At any time, including after the expiration of the Term hereof, Contractor shall provide copies of such records to City. The requirements of this Section shall survive the expiration of the Term of this Agreement. 28.3 Ongoing Compliance Review City intends to review Contractor’s performance on an ongoing basis to ensure compliance with the terms and provisions of this Agreement. At a minimum, City intends to have internal staff or outside consultants review Contractor’s performance to ensure ongoing compliance with the terms hereof, including, but not limited to, the payment of required fees, performance of the services stated herein, implementation of programs required under the Agreement, Contractor’s maintenance and upkeep of records, and compliance with all Applicable Laws. Contractor shall provide any and all information reasonably requested by City in connection with its efforts to ensure compliance with the terms hereof, regardless of whether such information is specifically otherwise called out herein as an item that Contractor is required to maintain and provide to City. 28.4 Audits 28.4.1 Examination of Services From time to time, anticipated to occur as a result of reports and other submittals required by this Agreement, City may request Contractor to make available any or all of its records related to performance hereunder available to an independent auditor or examiner, to be selected by the City, for auditing and examination purposes (a “Discretionary Audit”). The scope of the 104 1645189.1 Discretionary Audit and auditor or examiner will be determined by City and the scope may include, but is not limited to, compliance with terms of this Agreement, Customer service levels and Billing, fee payments, Gross Receipts, tonnage, and verification of diversion rates. Except as otherwise provided herein, City shall bear the cost of any Discretionary Audit. Should any Discretionary Audit reveal an underpayment of any Franchise Fee required pursuant to this Agreement, the amount of such underpayment shall become due and payable to City not later than fifteen (15) days after written notice of such underpayment is sent to Contractor by City, complete with any additional late charges as set forth herein. If a Discretionary Audit reveals inaccuracies or inconsistencies in more than five percent (5%) of all Customer accounts, either with Contractor’s operations or billing systems, or an underpayment of Franchise Fees of more than three percent (3%), Contractor shall bear the entire cost of such Discretionary Audit. 28.4.2 Route Audit Contractor shall complete an audit at its expense of its Collection routes for all Customers at Residential and Commercial Premises at such times as may be requested by City; provided, however, that while City may request that such an audit occur at any time, it may not request such audits at Contractor’s expense more than seven (7) times during the Term. The timing of such audits is at the City’s discretion and may be required to be timed with the issuance of a request for proposals for a new agreement. The route audit, at minimum, shall consist of an independent physical observation by Person(s) other than the route driver or route supervisor of each Customer in the City. The route audit shall include, as a minimum, the following information for each account: • Route Number; • Truck Number; • Account Name; • Account Number; • Account service address; • Service Level per Billing System (quantity, size, frequency); • Service Level per Routing System; • Observed Containers (quantity, type and size); • Serial number (or other coding if acceptable to the City Manager) identifying each Cart and its associated service address; • Bin condition; • Proper signage; and • Graffiti. Within thirty (30) days after the completion of the route audit, Contractor shall submit to City a report summarizing the results thereof which shall include: • Identification of the routes; • Truck numbers; • Number of accounts, by route and in total; • Number of Containers (broken down by type) per service address, per route and total number of Containers; 105 1645189.1 • Types of exceptions observed; • Number of exceptions by type; • Total monthly Billing, pre-audit; • Total monthly Billing, post-audit (subsequent to corrections of identified exceptions); • Percentage of the number of accounts with errors to the total number of accounts served; and • Percentage of the “net” change in monthly Billing as a result of the audit to the total pre-audit monthly Billing. The report shall include a description of the procedures followed to complete the audit, and shall include the names and titles of those supervising the route audits and the name and titles of those performing the observations. Additionally, the report shall include a description of the pre- audit training of the route auditors, particularly if temporary personnel are used. The report shall also include a description of the changes and Contractor’s plans to resolve any exceptions. The route audit data and results of the audit shall be available for review by the City or its representative. SECTION 29. TRANSITION OBLIGATIONS At the end of the Term, or in the event this Agreement is terminated for cause prior to the end of the Term, Contractor shall cooperate fully with City and any subsequent solid waste enterprise it designates to assure a smooth transition of services. Contractor’s cooperation shall include, but not be limited to, providing route lists, billing information and other operating records needed to service all premises covered by this Agreement. The failure to cooperate with City following termination shall be conclusively presumed to be grounds for specific performance of this covenant and/or other equitable relief necessary to enforce this covenant. Contractor shall provide any new solid waste enterprise with all keys, security codes and remote controls used to access garages, gates and bin enclosures. Contractor shall be responsible for coordinating transfer immediately after its final collection activities, so as to not disrupt services, including coordinating with the new solid waste enterprise on the removal of Contractor’s Containers and the delivery of the new solid waste enterprise’s Containers. Contractor shall provide City with detailed route sheets containing service names and addresses, billing names and addresses, monthly rate and service levels (number and size of Containers and pickup days) at least 90 days prior to the transition date, provide an updated list two weeks before the transition, and a final updated list with any changes the day before the transition. Contractor shall provide means of access to the new solid waste enterprise at least one full business day prior to its first day of collection, and within sufficient time so as to not impede in any way the new solid waste enterprise from easily servicing all Containers. SECTION 30. GENERAL PROVISIONS 30.1 Force Majeure Contractor shall not be in default under this Agreement in the event that its ability to provide Solid Waste Handling Services or Temporary Services, in compliance with its obligation 106 1645189.1 to do so hereunder, is temporarily interrupted or discontinued for any of the following reasons: riots, wars, sabotage, civil disturbances, insurrections, strikes or other labor disturbances lasting five (5) days or less, explosion, natural disasters such as floods, earthquakes, landslides, and fires, or “other catastrophic events” which are beyond the reasonable control of Contractor. The term “other catastrophic events” does not include: (i) the financial inability of Contractor to perform; (ii) failure of Contractor to obtain any necessary permits or licenses from other governmental agencies; (iii) the failure to obtain the right, or the loss of the right, to use the facilities of any public utility where such failure is due in substantial part to the acts or omissions of Contractor; or (iv) strikes or other labor disturbances lasting longer than five (5) days. 30.2 Independent Contractor Contractor is an independent contractor and not an officer, agent, servant, or employee of City. Contractor is solely responsible for the acts and omissions of its officers, agents, employees, and subcontractors, if any. Nothing in this Agreement shall be construed as creating a partnership or joint venture between City and Contractor. Neither Contractor nor its officers, employees, agents, or subcontractors shall obtain any rights to retirement or other benefits which accrue to City employees. 30.3 Pavement Damage Contractor shall be responsible for the cost of repair of any extraordinary damage to the public streets and streets, whether or not paved, located within the City resulting from providing the services required hereunder. 30.4 Property Damage Any physical damage caused by the negligent or willful acts or omissions of employees, agents, or subcontractors of Contractor to private or public property shall be promptly repaired or replaced at Contractor’s expense. 30.5 Right of Entry Contractor shall not have the right, until Contractor receives permission from the property owner, to enter or drive on any private street, court, place, easement, or other private property for the purpose of providing Temporary Services and/or Solid Waste Handling Services pursuant to this Agreement. 30.6 Law to Govern; Venue The laws of the State of California shall govern this Agreement. In the event of litigation between the parties, venue in state trial courts shall lie exclusively in the County of Orange and venue in federal trial courts shall lie exclusively in the District of California in which City is located. 30.7 Amendment This Agreement is intended to carry out City’s obligations to comply with the provisions 107 1645189.1 of AB 939 and SB 1383, as implemented by regulations of CalRecycle, as they from time to time may be amended. In the event that, after the Effective Date of this Agreement, AB 939 or SB 1383 is amended, or other state or federal laws or regulations are enacted and prevent or preclude compliance with one or more provisions of this Agreement, such provisions shall be modified or suspended as may be necessary to comply with such state or federal laws or regulations. Except as otherwise expressly stated herein, no other amendment of this Agreement shall be valid unless it is in writing and duly executed by the parties. 30.8 Notices All notices required or permitted to be given under this franchise shall be in writing and shall be personally delivered or sent by United States certified mail, postage prepaid, return receipt requested, and addressed as follows: To City: City of Los Alamitos Attn: City Manager 3191 Katella Avenue Los Alamitos, CA 90720 To Contractor: __________________ Attn: _____________ __________________ __________________ Or to such other address as either party may from time to time designate by notice to the other given in accordance with this Section. Notice shall be deemed given on the date served if served personally between the hours of 8:00 a.m. to 5:00 p.m. on any regular business day for City’s business offices. If mailed, notice shall be deemed given three (3) business days from the date such notice is deposited in the United States mail in the manner proscribed above. 30.9 Savings Clause If any non-material provision of this Agreement is for any reason held to be invalid or unenforceable, the invalidity or unenforceability of such provision shall not affect the validity and enforceability of any of the remaining provisions of this Agreement. 30.10 Exhibits Incorporated Exhibit A is attached to and incorporated in this Agreement by reference. 30.11 Joint Drafting This Agreement shall be interpreted as if it were drafted jointly by the parties to the Agreement. 30.12 Attorneys’ Fees and Litigation Costs 108 1645189.1 In the event either party brings any action or proceeding to enforce or interpret the terms or provisions of this Agreement, the prevailing party in any such action or proceeding shall be entitled to recover its reasonable attorneys’ fees and other litigation costs and expenses, including without limitation expert witness fees, consultant fees and costs. Without limiting its scope in any way, this provision is expressly intended to, and shall, apply to fees and costs incurred in any appeal. 30.13 City’s Authorized Agent Notwithstanding anything contained herein to the contrary, and excepting amendments hereto and such actions set forth herein specifically calling for City Council action or approval, the City Manager is designated as the City ’s authorized agent to take any action with regard to any matter, or enforce any right, set forth herein requiring action by the City. 30.14 Integrated Agreement This Agreement contains the entire integrated agreement and understanding concerning the subject matter herein and supersedes and replaces any prior negotiations, promises, proposals, and agreements between the Parties, whether written or oral. The Parties acknowledges this document has been executed with the consent and upon the advice of counsel. Each of the Parties acknowledges that no party or agent or attorney of any other party has made any promise, representation, or warranty, express or implied, not contained in this Agreement, to induce the other party to execute this instrument. 30.15 Section Headings The section headings in this Agreement are for convenience of reference only and are not intended to be used in the construction of this Agreement nor to alter or affect any of its provisions. 30.16 Compliance with Law In providing the services required under this Agreement, Contractor shall at all times, at its sole cost, comply with all Applicable Laws, including the laws and regulations of the United States, the State of California, the provisions of the Municipal Code, and any federal, state, regional or local administrative and regulatory agencies, now in force and as they may be enacted, issued or amended. 30.17 No Third Party Beneficiaries Except as otherwise provided for in this Agreement, nothing in this Agreement, whether expressed or implied, is intended to confer any rights on any persons other than the parties to the Agreement and their representatives, successors, and permitted assigns. [SIGNATURES ON FOLLOWING PAGE] 109 1645189.1 Dated: ______________________________ “City” CITY OF LOS ALAMITOS By: Mark A. Chirco, Mayor ATTEST: By: Windmera Quintanar, MMC, City Clerk APPROVED AS TO FORM: By: Michael S. Daudt, City Attorney Dated: ______________________________ Dated: ______________________________ “Contractor” By: By: -110- 1645189.1 EXHIBIT A MAXIMUM RATE SCHEDULE FOR SOLID WASTE HANDLING SERVICES Commercial Rates Three Container System PRICING ITEM New Rate/Month 3-YARD GREY BIN (Trash) 1X PER WEEK 135.00$ 3-YARD GREY BIN 2X PER WEEK 247.92$ 3-YARD GREY BIN 3X PER WEEK 338.82$ 3-YARD GREY BIN 4X PER WEEK 424.15$ 3-YARD GREY BIN 5X PER WEEK 509.93$ 3-YARD GREY BIN 6X PER WEEK 594.89$ 3-YARD BLUE BIN (Recycle) 1X PER WEEK 77.89$ 3-YARD BLUE BIN 2X PER WEEK 121.20$ 3-YARD BLUE BIN 3X PER WEEK 165.65$ 3-YARD BLUE BIN 4X PER WEEK 207.37$ 3-YARD BLUE BIN 5X PER WEEK 249.30$ 3-YARD BLUE BIN 6X PER WEEK 290.87$ PRICING ITEM New Rate/Month 4-YARD GREY BIN (Trash) 1X PER WEEK 180.00$ 4-YARD GREY BIN 2X PER WEEK 330.56$ 4-YARD GREY BIN 3X PER WEEK 451.76$ 4-YARD GREY BIN 4X PER WEEK 565.53$ 4-YARD GREY BIN 5X PER WEEK 679.91$ 4-YARD GREY BIN 6X PER WEEK 793.19$ 4-YARD BLUE BIN (Recycle) 1X PER WEEK 103.85$ 4-YARD BLUE BIN 2X PER WEEK 161.60$ 4-YARD BLUE BIN 3X PER WEEK 220.87$ 4-YARD BLUE BIN 4X PER WEEK 276.49$ 4-YARD BLUE BIN 5X PER WEEK 332.40$ 4-YARD BLUE BIN 6X PER WEEK 387.83$ 35-GALLON GREEN CART (Organics) 1X PER WEEK 48.16$ CITY OF LOS ALAMITOS ATTACHMENT "A" - COMMERCIAL RATE SHEET RATES EFFECTIVE JANUARY 1, 2022 RATES ARE ALL INCLUSIVE 35-GALLON GREEN CART 2X PER WEEK 96.33$ 65-GALLON GREEN CART 1X PER WEEK 49.65$ 65-GALLON GREEN CART 2X PER WEEK 99.31$ 65-GALLON GREEN CART 3X PER WEEK 148.96$ 65-GALLON GREEN CART 4X PER WEEK 198.61$ 65-GALLON GREEN CART 5X PER WEEK 248.27$ 65-GALLON GREEN CART 6X PER WEEK 297.92$ 2-YARD GREEN BIN (Organics) 1X PER WEEK 49.65$ 2-YARD GREEN BIN 2X PER WEEK 99.31$ 2-YARD GREEN BIN 3X PER WEEK 148.96$ 2-YARD GREEN BIN 4X PER WEEK 198.61$ 2-YARD GREEN BIN 5X PER WEEK 248.27$ 2-YARD GREEN BIN 6X PER WEEK 297.92$ Two Container System PRICING ITEM New Rate/Month 3-YARD GREY BIN (Trash & Recycle Mix) 1X PER WEEK 162.00$ 3-YARD GREY BIN 2X PER WEEK 297.50$ 3-YARD GREY BIN 3X PER WEEK 406.58$ 3-YARD GREY BIN 4X PER WEEK 508.98$ 3-YARD GREY BIN 5X PER WEEK 611.92$ 3-YARD GREY BIN 6X PER WEEK 713.87$ 35-GALLON GREEN CART (Organics) 1X PER WEEK 48.16$ 35-GALLON GREEN CART 2X PER WEEK 96.33$ 65-GALLON GREEN CART 1X PER WEEK 49.65$ 65-GALLON GREEN CART 2X PER WEEK 99.31$ 65-GALLON GREEN CART 3X PER WEEK 148.96$ 65-GALLON GREEN CART 4X PER WEEK 198.61$ 65-GALLON GREEN CART 5X PER WEEK 248.27$ 65-GALLON GREEN CART 6X PER WEEK 297.92$ 2-YARD GREEN BIN (Organics) 1X PER WEEK 226.94$ 2-YARD GREEN BIN 2X PER WEEK 453.88$ 2-YARD GREEN BIN 3X PER WEEK 680.82$ 2-YARD GREEN BIN 4X PER WEEK 907.75$ 2-YARD GREEN BIN 5X PER WEEK 1,134.69$ 2-YARD GREEN BIN 6X PER WEEK 1,361.63$ Commercial Rates - Other Services & Items PRICING ITEM New Rate/Month 3-YARD GREEN WASTE ONLY BIN 1X PER WEEK 159.31$ 3-YARD GREEN WASTE ONLY BIN 2X PER WEEK 247.92$ 3-YARD GREEN WASTE ONLY BIN 3X PER WEEK 338.82$ 3-YARD GREEN WASTE ONLY BIN 4X PER WEEK 424.15$ 3-YARD GREEN WASTE ONLY BIN 5X PER WEEK 509.93$ 3-YARD GREEN WASTE ONLY BIN 6X PER WEEK 594.89$ Additional Commercial Charge Item* Additional Commercial Charge Item* Commercial rates are applicable to all business and multi-family properties of 5 units or more, and smaller multi-family properties that subscribe to bin service. Industrial Rates Recurring Services PRICING ITEM New Rate/Month SMALL COMPACTOR (Trash - 20 cubic-yards or less) PER PICK-UP 537.50$ MAXIMUM WEIGHT IN TONS 5 PER-TON CHARGE FOR OVERAGE 55 LARGE COMPACTOR (Trash - 21 cubic-yards or more) PER PICK-UP 647.50$ MAXIMUM WEIGHT IN TONS 7 PER-TON CHARGE FOR OVERAGE 55 GREY ROLL-OFF CONTAINER (20 to 40 cubic yards) PER PICK-UP 537.50$ MAXIMUM WEIGHT IN TONS 5 PER-TON CHARGE FOR OVERAGE 55 BLUE ROLL-OFF CONTAINER (20 to 40 cubic yards) PER PICK-UP 387.50$ GREEN ROLL-OFF CONTAINER (20 to 40 cubic yards) PER PICK-UP 587.50$ GREEN WASTE ONLY ROLL-OFF CONTAINER PER PICK-UP 587.50$ Temporary Services PRICING ITEM New Rate/Month GREY ROLL-OFF CONTAINER (20 to 40 cubic yards) PER PICK-UP * Includes trash with C&D Debris 587.50$ MAXIMUM WEIGHT IN TONS 5 PER-TON CHARGE FOR OVERAGE 65 BLUE HIGH-SIDE ROLL-OFF CONTAINER (to 40 cubic yards) PER PICK- UP * Clean mixed debris only.587.50$ MAXIMUM WEIGHT IN TONS 5 PER-TON CHARGE FOR OVERAGE 65 BLUE LOW-BOY ROLL-OFF CONTAINER (10 cubic yards) PER PICK-UP * Clean mixed debris only 782.50$ MAXIMUM WEIGHT IN TONS 8 PER-TON CHARGE FOR OVERAGE 65 BLUE HIGH-SIDE ROLL-OFF CONTAINER (to 40 cubic yards) PER PICK- UP * One material type only.587.50$ MAXIMUM WEIGHT IN TONS 5 PER-TON CHARGE FOR OVERAGE 65 BLUE LOW-BOY ROLL-OFF CONTAINER (10 cubic yards) PER PICK-UP * One material type only 782.50$ MAXIMUM WEIGHT IN TONS 8 CITY OF LOS ALAMITOS ATTACHMENT "A" - INDUSTRIAL RATE SHEET RATES EFFECTIVE JANUARY 1, 2022 Specify tons included in base rate and per-ton charges as applicable PER-TON CHARGE FOR OVERAGE 65 GREEN WASTE ONLY ROLL-OFF CONTAINER PER PICK-UP 587.50$ 3-YARD GREY BIN (Trash & Recycle Mix) 1X PER WEEK 162.00$ 3-YARD GREY BIN 2X PER WEEK 297.50$ 3-YARD GREY BIN 3X PER WEEK 406.58$ 3-YARD GREY BIN 4X PER WEEK 508.98$ 3-YARD GREY BIN 5X PER WEEK 611.92$ 3-YARD GREY BIN 6X PER WEEK 713.87$ 3-YARD BLUE BIN (Mixed Debris or Single Material) 1X PER WEEK 77.89$ 3-YARD BLUE BIN (Mixed Debris or Single Material) 2X PER WEEK 121.20$ 3-YARD BLUE BIN (Mixed Debris or Single Material) 3X PER WEEK 165.65$ 3-YARD BLUE BIN (Mixed Debris or Single Material) 4X PER WEEK 207.37$ 3-YARD BLUE BIN (Mixed Debris or Single Material) 4X PER WEEK 249.30$ 3-YARD BLUE BIN (Mixed Debris or Single Material) 6X PER WEEK 290.87$ Industrial Rates - Other Services & Items PRICING ITEM New Rate/Month Additional Industrial Charge Item (No MSW in Blue Bin Program Above) Additional Industrial Charge Item* Industrial rates are applicable too all recurring commercial compactor/ roll-off service and all non- residential temporary service. Residential Rates PRICING ITEM Proposed Monthly Rate Curbside Grey-Blue-Green - 35 gallon cart (Senior)12.18$ Curbside Grey-Blue-Green - 65 gallon cart (Senior)12.56$ Curbside Grey-Blue-Green - 65 gallon cart 12.95$ Curbside Grey-Blue-Green - 95 gallon cart 12.95$ Curbside Grey-Blue-Green - 65/95 gallon cart with Quarterly HHW Serv 13.90$ Curbside Two-Cart Grey-Green - 65 gallon cart 16.45$ Curbside Two-Cart Grey-Green - 95 gallon cart 16.95$ Extra Grey Cart (Trash) - 65 or 95 gallon 7.00$ Extra Blue Cart (Recycling) - 65 or 95 gallon 5.50$ Extra Green Cart (Organics) - 65 or 95 gallon 7.00$ # of Free Bulky Item Collections Per Year 4 # of Bulky Items Allowed for Each Free Collection 4 Bulky Items - Additional Collections 45.00$ # of Bulky Items Allowed for Each Such Collection 4 HHW Collections - # Per-Year (Please list of limitations separately)4 HHW Collection Charge Per Unit Receiving Service 0.95$ Cart Contamination Charge (after 1 warning tickets)N/C Cart Contamination Charge (after 2 warning tickets)$15.00 Cart Contamination Charge (after 3 warning tickets)$30.00 Residential Clean-Up Bin (3 cubic-yards)95.00$ Clean-Up Bin Per-Exchange 95.00$ Residential Clean-Up Box (20 to 40 cubic-yards)$550.00 Res Clean-Up Box (20 to 40 cubic-yards) Over 5 tons @ $65/ton Additional Residential Charge Item* Residential rates are applicable to all single and multi-family properties of 4 units or less that subscribe to cart service.. CITY OF LOS ALAMITOS ATTACHMENT "A" - RESIDENTIAL RATE SHEET RATES EFFECTIVE JANUARY 1, 2022 RATES ARE ALL INCLUSIVE (SUBSTITUTE SIZE IF APPLICABLE) Proposal for Integrated Waste Management Services City of Los Alamitos 1 Proposal for Integrated Waste Management Services Presented to The City of Los Alamitos Windmera Quintanar City Clerk City of Los Alamitos 3191 Katella Ave, Los Alamitos CA 90720 Submitted By Universal Waste Systems, Inc. “Large Enough to Serve, Small Enough to Care” July 15, 2021 Proposal for Integrated Waste Management Services City of Los Alamitos 2 SECTION 2 - TRANSMITTAL LETTER July 15, 2021 Ms. Windmera Qunitanar, MMC City Clerk City of Los Alamitos 3191 Katella Avenue Los Alamitos, CA 907020 Re: PROPOSAL FOR INTEGRATED WASTE MANAGEMENT SERVICES Dear Ms. Quintanar: Universal Waste Systems, Inc. (UWS) is pleased to submit the following proposal in response to the City of Los Alamitos’ request for proposals for Integrated Waste Management Services. UWS is a family-owned privately held company established in 1986 providing waste management services to communities throughout Southern California. We have broad and extensive experience serving residential, commercial and industrial customers in Southern California, Arizona, and New Mexico. In addition to successfully operating in exclusive franchise areas where excellent service has earned renewals and extensions, we have also been successful in the highly competitive non-exclusive environment where customers are free to change service providers based upon service quality and price. UWS would be a perfect fit for the City of Los Alamitos as we are located just minutes from the City limits and own and operate all of our processing, transfer and material recovery facilities needed to meet the requirements of the RFP. In additional to the information provided in the RFP, we have provided a section titled “Key Highlights of the Proposal” which will provide a quick summary of the key points as well as some of the enhancements offered by UWS. Our contact person for this Proposal is: Name: Matt Blackburn Executive Vice President Mailing address: P.O. Box 3038 Whittier, California 90605 E-mail address matt@uwscompany.com Telephone: 562-695-8236 (office) 909-859-5731 (cell) Fax number: 562-941-4915 Proposal for Integrated Waste Management Services City of Los Alamitos 3 We look forward to the RFP process and the opportunity to meet and discuss the many capabilities of Universal Waste Systems and its qualified team of professionals. Please feel free to contact us with any questions or comments. Respectfully submitted, Mark Blackburn President Proposal for Integrated Waste Management Services City of Los Alamitos 4 TABLE OF CONTENTS SECTION 1 – SEALED ENVELOPE WITH PRICING STRUCTURE SECTION 2 – TRANSMITTAL LETTER 1-2 TABLE OF CONTENTS 3 KEY HIGHLIGHTS OF THE PROPOSAL 4-6 SECTION 3 – INTRODUCTION 7 SECTION 4 – RELATED EXPERIENCE BY AREA 8-16 SECTION 5 – PROJECT TEAM AND RESUMES 17-23 SECTION 6 – OTHER RESOURCES INCLUDING EQUIPMENT 24-40 SECTION 7 – SAFETY RECORD 41-48 SECTION 8 – OWNERSHIP AND FINANCIAL RECORDS 49 SECTION 9 – INSURANCE 50 SECTION 10 – REFERENECES 51-54 SECTION 11 – DISPOSAL AND PROCESSING FACILITY CAPACITY 55-62 SECCTION 12 – ENVIRONMENTAL RECORD 63 SECTION 13 – CUSTOMER SERVICE 64-67 SECTION 14 – RATES AND COSTS 68 SECTION 15 – OPERATION 69-70 SECTION 16 – EXCEPTIONS 71 SECTION 17 – SB1383 COMPLIANCE 72-87 SECTION 18 - PROPOSAL ENHANCEMENTS 88 Proposal for Integrated Waste Management Services City of Los Alamitos 5 KEY HIGHLIGHTS OF THE PROPOSAL Ownership and Management Universal Waste Systems, Inc. (UWS) is a privately held locally owned and operated business by the Blackburn Family. The company was established in 1986 and has family members at all levels of management within the company to ensure that it meets and/or exceeds all of its contract obligations. The City of Los Alamitos will have direct access to the owners of the company which will provide for a better long-term relationship and guarantee that the contract is successful and compliant. We live by our company slogan “Large enough to serve; small enough to care”. Past Experience Following a competitive procurement, the City of Los Angeles awarded UWS an exclusive franchise agreement for the North East Commercial Franchise Zone to service commercial, multi-family, and industrial customers. This franchise was awarded and covered all services including waste, recyclable and organic collection, processing of all waste streams, facility development and construction along with a robust public education component as well as legislative compliance. During the implementation we transitioned 9,000 new accounts from 20 different service providers to a new UWS customer. Key Personnel UWS’ President and CEO, Mark Blackburn started the company in 1986 with one truck and a few hundred bins. Since 1986, UWS has grown into one of the premier environmental waste and recycling companies in California and the nation. UWS employs over 500 employee’s runs 350 trucks in 3 states with multiple operations and processing centers in the greater Southern California market available to the City of Los Alamitos. Under Mr. Blackburn’s leadership he has created an environment where all employees are unified in their commitment to our mission, vision, and values. The company’s success is a result of empowering our employees to make good decision, implement them with the ultimate goal of the opportunity for upward mobility. Facility Description and Utilization UWS’ owned and operated facilities will ensure that the City of Los Alamitos has control over where their waste and recyclable materials are shipped for processing. The facilities owned and operated by UWS, are in close proximity to the City limits and will ensure that UWS can meet and or exceed all of the legislative requirements facing the City. There is a detailed list and description of the facilities in Section 3. Below is a quick rundown on the proposed facilities.  Material Recovery and Transfer Facility – Santa Fe Springs  Mixed Waste Processing Facility – Santa Fe Springs and Pico Rivera  Green Waste and Organic Composting Facility – South Gate  Organic Food and Food Scrap Processing – Vernon  Truck Terminals – Costa Mesa, Santa Fe Springs and South Gate Implementation and Compliance Plan This Service Implementation Plan will ensure an efficient and orderly transition of integrated solid waste management services for the residents and businesses in the City of Los Alamitos by January 1, 2022. As noted previously in the proposal, UWS has extensive experience with service transition most recently in the City of Los Angeles and Maywood. UWS will assign a City Liaison which will be Matt Blackburn (family Proposal for Integrated Waste Management Services City of Los Alamitos 6 member and owner) and he will be the primary contact for implementation and will personally oversee the transition. Matt coordinated the transition in the City of Los Angeles and Maywood. Customer Service UWS’ roots are in the highly competitive nonexclusive franchise environment where customers are free to change providers if service quality is not maintained. Quality customer service always has been and continues to be of utmost importance to the Blackburn Family. Here the power of the personal guarantee, a UWS Core Value, is exemplified by the hands-on involvement of the key management team members to ensure that every single Customer complaint or simple inquiry is resolved to the complete satisfaction of the Customer. Training In the weeks leading up to starting service, we will conduct mandatory off-hour training sessions to familiarize transitioning employees with our procedures and technologies. Transitioning employees will be compensated for attending training sessions. This early activity with the personnel assigned to the City of Los Alamitos will again provide for a seamless transition with minimal disruption to the services. Outreach and Education Plan RecycleLA, the City of Los Angeles’ Zero Waste program, was designed before SB 1383 was adopted and yet the program anticipated what would become the State recycling and organic waste recycling mandate. As a Contractor for RecyLA servicing the North East zone, we have been able to perfect our diversion implementation plan, recruit and train our team, and hone our customer education and outreach skills. Our Zero Waste team has extensive experience in assessing our customer needs, personalizing programs and getting results. This implementation plan is a product of that experience. Our Zero Waste Team is made up of fourteen Zero Waste Account Representatives with public relations skills and special training and expertise to personally assist Customers with tailoring solid waste services that maximize the recovery of recyclable material and organics. Safety and Injury Prevention UWS has an extensive safety and injury prevention program that all employees are required to participate in as well as receive individual training that fits their job duties. UWS has been able to substantially reduce the number of work place accidents through our rigorous training protocol and follow up training. Because safety is a core value of the company, we dedicated a complete section to this area which provides an in depth look into the safety culture we have developed and continue to enforce at UWS. Please take time to review Section 9 for more details on our approach and success. Proposed Equipment UWS proposes to utilize all brand new equipment in the City of Los Alamitos. UWS has an inventory of brand new 2021 Renewable Natural Gas (RNG) collection vehicles in stock ready for deployment after award of the contract. UWS will also outfit each resident with brand new SB1383 compliant automated carts (grey, blue and green) at service commencement. The commercial and multi-family customers serviced by front loader bins will also receive brand new containers prior to the start of service. Proposal for Integrated Waste Management Services City of Los Alamitos 7 Minimum Recycling and Diversion Requirements This is the Section of the proposal that will set UWS apart from all of the other competitors. UWS will guarantee the City of Los Alamitos a Seventy-Five (75%) percent diversion form landfill starting on day one. We are so confident in our proposed diversion programs included in our response, we will guarantee this to the City thus allowing the City of Los Alamitos to be the first City in Orange County of meet a 75% diversion threshold and be complaint with SB1383. More details on this included in Section 12. Employment of Prior Contractor Employees We recognize that the employees of the current contractor possess unique knowledge of the City and the customers therefore we believe they would be beneficial to join our team. We plan to offer employment opportunities for available positions to existing employees of the current contractor that would otherwise be displaced. Our owners, management and employees treat each other equally and fairly and will not engage in discrimination against anyone because of their actual or perceived race, color, religion, ancestry, national origin, disability, medical condition, marital status, domestic partner status, sex, gender, gender identity, gender expression, or sexual orientation or as a member of any other protected class. Procurement of Recovered Organic Waste Products Short-Lived Climate Pollutants regulations requires a jurisdiction to procure organic waste products directly, or through a service provider (Contractor), at or above the target established by CalRecycle. UWS will assist the City with meeting these requirements by procuring products that meet the criteria established in SB1383. One of the areas that will be beneficial to the City in meeting these goals will be UWS’ commitment to use Renewable Natural Gas (RNG) in the City of Los Alamitos’ collection vehicles. UWS currently uses RNG in all of its collection vehicles that operate in the Southern California market. Proposal for Integrated Waste Management Services City of Los Alamitos 8 SECTION 3 – INTRODUCTION UWS is a family-owned privately held company established in 1986 providing waste management services to communities throughout Southern California. We have broad and extensive experience serving residential, commercial and industrial customers in Southern California, Arizona, and New Mexico. In addition to successfully operating in exclusive franchise areas where excellent service has earned renewals and extensions, we have also been successful in the highly competitive non-exclusive environment where customers are free to change service providers based upon service quality and price. UWS would be a perfect fit for the City of Los Alamitos as we are located just minutes from the City limits and own and operate all of our processing, transfer and material recovery facilities needed to meet the requirements of the RFP. In additional to the information provided in the RFP, we have provided a section titled “Key Highlights of the Proposal” which will provide a quick summary of the key points as well as some of the enhancements offered by UWS. UWS current operates in the County of Orange and has spent considerable time in the City of Los Alamitos familiarizing ourselves with the City and its unique characteristics. We have performed route audits and observed the collection of the residential sector during the current collectors work day. UWS is confident that we are prepared and willing to provide the City with exceptional service at a reasonable rate. We look forward to the opportunity. Proposal for Integrated Waste Management Services City of Los Alamitos 9 SECTION 4 – RELATED EXPERIENCE BY AREA Business Structure Proposing Entity Universal Waste Systems, Inc. (“UWS”) is a C-corporation organized in the State of California. Financial Statements As the proposing entity, UWS will provide the necessary financial statements as required by the City. Years in Operation UWS was formed as a California corporation in 1986 and is in good standing with the California Secretary of State. Officers The officers of UWS are: UWS Officers Name Office Mark Blackburn Chief Executive Officer & Chief Financial Officer Anne Blackburn Secretary Matt Blackburn Executive Vice President Corporate Headquarters Corporate headquarters: 9010-9016 Norwalk Boulevard, Santa Fe Springs, CA 90670. Mailing Address: P.O. Box 3038, Whittier, CA 90605-308. Continued on next page Proposal for Integrated Waste Management Services City of Los Alamitos 10 Description of Proposers Experience UWS’ has broad and extensive experience serving residential, commercial and industrial customers in Southern California, Arizona, and New Mexico. In addition to successfully operating in exclusive franchise areas where excellent service has earned renewals and extensions, we have also been successful in the highly competitive non-exclusive environment where customers are free to change service providers based upon service quality and price. Although UWS is not the largest company that will propose on the City of Los Alamitos, we are the one company that possess all the capabilities necessary to serve the City and meet and/or exceed the requirements listed in the RFP. UWS has developed into a company that prides itself on a creating partnerships with our communities in order to ensure a high level of service at reasonable rates. We will be committed to the residents and businesses of the City of Los Alamitos by offering first class services. Experience in Los Angeles County Table 1 Current Exclusive Franchise Agreements by Jurisdiction & Years of Service Jurisdiction Service Period Customer Types Service Performed Residential Collection Method Contact Information City of Los Angeles North East Area February 2017 to Present Commercial, Multi- Family, Industrial -Refuse- -Recycling- -Organic Waste- -C&D- Multi-Family (carts & bins) Mr. Daniel Meyers Division Manager LA Dept. of Sanitation 1149 S. Broadway St. 5th Floor Los Angeles, CA 90015 213-446-2199 County of Los Angeles For all LA County franchise areas: Mr. Steve Milewski Senior Civil Engineer County of Los Angeles Department of Public Works 900 S. Fremont Ave. Alhambra, CA 91803 626-458-3573 West Whittier Area April 2007 to Present Residential Refuse, Recycling, Green waste, C&D Bulky Items, E-Waste, Shredding Automated Proposal for Integrated Waste Management Services City of Los Alamitos 11 Table 2, continued Current Exclusive Franchise Agreements, continued Jurisdiction Service Period Customer Types Service Performed Residential Collection Method Contact Information County of Los Angeles, continued See previous page for County of Los Angeles contact info. Pioneer / Carson Park Area Sept. 2011 to Present Residential Refuse, Recycling, Green waste, C&D Bulky Items, E-Waste, Shredding Automated Mesa Heights Garbage Disposal District July 2013 to Present Residential, Commercial, Multi- Family Refuse, Recycling, Green waste, C&D Bulky Items, E-Waste, Shredding Automated South San Gabriel Area July 2014 to Present Residential Refuse, Recycling, Green waste, C&D Bulky Items, E-Waste, Shredding Automated Citrus, Charter Oak, Ramona Area Nov. 2014 to Present Residential Refuse, Recycling, Green waste, C&D Bulky Items, E-Waste, Shredding Automated Proposal for Integrated Waste Management Services City of Los Alamitos 12 Table 2 Current Non-Exclusive Franchise Agreements by Jurisdiction & Years of Service Jurisdiction Service Period Customer Types Service Performed Residential Collection Method Contact Information County of Los Angeles Feb. 2004 to Present Commercial, Multi- Family, Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Ms. Willa Zheng Administrative Assistant County of Los Angeles Department of Public Works 900 S. Fremont Ave. Alhambra, CA 91803 626-458-3530 City of Malibu Feb. 2004 to Present Commercial, Multi- Family, Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Ms. Rebecca Nelson-Brown Administrative Assistant Environmental Programs City of Malibu 23825 Stuart Ranch Rd. Malibu, CA 90265 310-456-2489, Ext. 286 City of Agoura Hills Feb. 2004 to Present Commercial, Multi- Family, Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Mr. Louis A. Celya Deputy City Manager City of Agoura Hills 3001 Ladyface Ct. Agoura Hills, CA 91301 818-597-7314 City of Glendale Feb. 2004 to Present Commercial, Multi- Family, Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Mr. Dennis Hargrove Assistant Director of Public Works City of Glendale 548 W. Chevy Chase Dr. Glendale, CA 91204 818-548-3916 City of Burbank Feb. 2004 to Present Commercial, Multi- Family, Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Ms. Amy Hammes Recycling Specialist City of Burbank 500 S Flower St. Burbank, CA 91502 818-238-3903 City of Vernon Feb. 2004 to Present Commercial, Multi- Family, Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Mr. Frederick Agyin Director Health & Environmental Control Department City of Vernon 4305 S. Santa Fe Ave. Vernon, CA 90058 323-583-8811 City of Bell Gardens Feb. 2004 to Present Commercial, Multi- Family, Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Ms. Veronica Sanchez Administrative Specialist City of Bell Gardens 8237 Garfield Ave. Bell Gardens, CA 90201 562-806-7770 Table 2 continued on next page Proposal for Integrated Waste Management Services City of Los Alamitos 13 Table 2, continued Current Non-Exclusive Franchise Agreements by Jurisdiction & Years of Service Jurisdiction Service Period Customer Types Service Performed Residential Collection Method Contact Information City of Commerce Feb. 2004 to Present Commercial, Multi- Family, Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Linda Wright Administrative Assistant City of Commerce 2535 Commerce Way Commerce, CA 90040 323-722-4805, Ext. 2331 City of Long Beach Feb. 2004 to Present Commercial, Multi- Family, Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Ms. Sarah Adams Recycling Specialist City of Long Beach 2929 Willow Ave. Long Beach, CA 90807 562-570-2852 City of Montebello Feb. 2004 to Present Commercial, Multi- Family, Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Public Works Department 1600 W. Beverly Blvd. Montebello, CA 90604 323-887-4555 City of Pasadena Feb. 2004 to Present Commercial, Multi- Family, Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Mr. Carmen Rubio Department of Public Works City of Pasadena 233 W. Mountain St., #235 Pasadena, CA 91109 626-744-7162 crubio@cityofpasadena.net City of Torrance Feb. 2004 to Present Commercial, Multi- Family, Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Ms. Wendy Wu 3031 Torrance Blvd. Torrance, CA 90503 310-781-7679 City of Maywood March 2020 to Present Commercial, Multi- Family, Residential Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Ms. Jennifer Vasquez 4319 E. Slauson Ave. Maywood, CA 90270 323-562-5712 Continued on next page Proposal for Integrated Waste Management Services City of Los Alamitos 14 Experience in Orange County Our Orange County Division is based at 2051 Placentia Ave., Costa Mesa. Table 3 Current Non-Exclusive Franchise Agreements by Jurisdiction & Years of Service Jurisdiction Service Period Customer Types Service Performed Residential Collection Method Contact Information City of Costa Mesa Oct. 2010 to Present Commercial, Multi- Family, Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Mr. Mike Balliet City Consultant City of Costa Mesa City of Newport Beach Oct. 2010 to Present Commercial, Multi- Family, Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Mr. Micah Martin Deputy Public Works Director City of Newport Beach 592 Superior Ave., Bldg. A Newport Beach, CA 92663 949-718-3466 City of Irvine Oct. 2010 to Present Commercial, Multi- Family, Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Public Works Department 1 Civic Center Plaza Irvine, CA 92606 949-724-6357 Proposal for Integrated Waste Management Services City of Los Alamitos 15 Transition Experience City of Los Angeles Commercial Franchise Zone Following a competitive procurement, the City of Los Angeles awarded UWS an exclusive franchise agreement for the North East Commercial Franchise Zone to service commercial, multi-family, and industrial customers. This franchise was awarded and covered all services including waste, recyclable and organic collection, processing of all waste streams, facility development and construction along with a robust public education component as well as legislative compliance. During the 6-month period of July 2017 to January 2018, we transitioned 9,000 new accounts from 20 different service providers to a new UWS account. The transition included: (i) creating individual customer records; (ii) conducting site inspections to establish GIS parameters; (iii) delivering over 15,000 containers; (iv) completing on-site waste assessments; and (v) initiating service. During the transition period, we established 35 new commercial collection routes, 5 new roll-off routes, and 8 new scout routes. While we were busy establishing these 9,000 new accounts, we were also divesting 8,000 of our commercial and multi-family customers in the 10 other City franchise zones to the 6 new service providers in those zones. The Los Angeles transition presented us with some unique challenges: subscription information was frequently incomplete or inaccurate; new subscribers resisted the change because the franchising system represented a material change in service; and, the City’s plan for expanded ‘Zero Waste’ programs brought with it some significant cost increases to the customer. In the face of these challenges, we were able to deliver 99% service reliability to our new customers during the transition. Table 4 City of Los Angeles Transition Experience Jurisdiction Transition Period Customer Types Service Performed Container Types Contact Information City of Los Angeles North East Franchise Zone July 2017 to Jan. 2018 Commercial, Multi- Family, Industrial -Refuse- -Recycling- -Organic Waste- -C&D- Carts, bins, stationary compactors & debris boxes Mr. Daniel Meyers Division Manager LA Dept. of Sanitation 1149 S. Broadway St. 5th Floor Los Angeles, CA 90015 213-446-2199 Proposal for Integrated Waste Management Services City of Los Alamitos 16 City of Maywood UWS transitioned the City of Maywood in March of 2020 during the pandemic and in order to replace a non-performing contractor. The City of Maywood had contracted with a company that was not able to meet the performance requirements in the City’s franchise agreement and had left the City without any notice. The City was approached by a large private hauler which moved into the City in late December of 2019 to assist the City in making sure the trash was collected. Within a few months, the company made demands of the City for a long-term evergreen contract with large rate increases. After a few months of negotiations, the company provided the City notice that it would be leaving at the end of February 2020 if the City would not agree to the terms of a new contract. This noticed provided the City about a week’s notice to find another company to step in and perform the services. UWS was contact by the City’s consultant that they had been working with to see if there was interest in the City of Maywood. UWS met with the City and the consultant and within a few hours had a plan to begin service the week following the departure of the exiting company. The City did not have any interruption of service and the City and UWS successfully negotiated a new agreement that is in place today. As well, UWS agreed to provide the services at the previous company’s rates for the balance of 2020 with a new rate structure being implemented over the next three (3) years. This transition was quick, demanding and very successful. Table 5 City of Maywood Transition Experience Jurisdiction Transition Period Customer Types Service Performed Container Types Contact Information City of Maywood March 2020 Residential, Commercial, Multi- Family, Industrial -Refuse- -Recycling- -Organic Waste- -C&D- Carts, bins, stationary compactors & debris boxes Ms. Jennifer Vasquez City Manager 4319 E. Slauson Ave. Maywood, CA 90270 (323) 562-5712 County of Los Angeles Mesa Heights Garbage Disposal District In addition to transitioning commercial, multi-family, and industrial customers in the City of Los Angeles and Maywood, we have also transitioned service for residential customers in combination with other services for the County of Los Angeles Mesa Heights Garbage Disposal District. In the Mesa Heights District, we transitioned 8,000 single family homes, and 100 commercial and multi- family properties during the 60-day period May to July 2013. The transition required coordination with the outgoing service provider Republic Services and included delivering approximately 25,000 containers and establishing 5 new residential routes, 1 new bulky waste/illegal dumping abatement route, and 1 new commercial route. The scope of services in the Mesa Heights District included a 3-barrell residential program, public curbside receptacles collection, bulky item collection, mulch/compost give away, e-waste collection, and a SHARPS recycling program. Proposal for Integrated Waste Management Services City of Los Alamitos 17 Table 6 County of Los Angeles Mesa Heights District Transition Experience Jurisdiction Transition Period Customer Types Service Performed Container Types Contact Information County of Los Angeles Mesa Heights Garbage Disposal District May 2013 to July 2013 Residential, Commercial, Multi- Family, Industrial -Refuse- -Recycling- -Organic Waste- -C&D- Carts, bins, stationary compactors & debris boxes Mr. Steve Milewski Senior Civil Engineer County of Los Angeles Department of Public Works 900 S. Fremont Ave. Alhambra, CA 91803 626-458-3573 ### Proposal for Integrated Waste Management Services City of Los Alamitos 18 SECTION 5 – PROJECT TEAM AND RESUMES UWS’ President and CEO, Mark Blackburn started the company in 1986 with one truck and a few hundred bins. Since 1986, UWS has grown into one of the premier environmental waste and recycling companies in California and the nation. UWS employs over 500 employee’s runs 350 trucks in 3 states with multiple operations and processing centers in the greater Southern California market available to the City of Los Alamitos. Under Mr. Blackburn’s leadership he has created an environment where all employees are unified in their commitment to our mission, vision, and values. The company’s success is a result of empowering our employees to make good decision, implement them with the ultimate goal of the opportunity for upward mobility. Mission Universal Waste Systems exists to provide quality waste and recycling services which result in a clean and healthy environment for communities we serve by applying innovative solutions to the challenges of today and tomorrow. Vision To be the flagship company for comprehensive waste management in Southern California by being the best and healthiest place to work and innovate to deliver cutting-edge environmental solutions to achieve “zero waste.” Core Values Integrity We operate with honesty and integrity in all dealings with customers, jurisdictional representatives and each other. We do what we say, and we say what we do. Sustainable Practices We are committed to planning effective waste diversion strategies and ensuring that our plans are carried out as promised. We operate our business as good stewards in a more sustainable way. Unity of Purpose We frequently and consistently communicate our mission and performance standards to all of our employees so as to operate with a unity of purpose at all times. The Power of a Personal Guarantee Our owner, family members, and management staff give their personal guarantee that every single customer issue or inquiry will be handled to the ultimate satisfaction of the customer and the City. Company Slogan “Large enough to serve; small enough to care.” Organization Figure below illustrates the span of control of our leadership team. Proposal for Integrated Waste Management Services City of Los Alamitos 19 Figure UWS Leadership Team. Key personnel are grouped into teams (Executive, Operations, Customer Care, and Support Services) and are introduced on the pages that follow. MARK BLACKBURN President | MATT BLACKBURN Executive Vice President County Liaison JASON PENNINGTON Maintenance Director (Fleet maintenance) JONATHAN JAIME Operations Manager CRIS DIAZ Operations Supervisor (Residential & Commercial) Richard Hernandez Route Supervisor ADOLFO QUINTERO Dispatcher Supervisor (Roll-Off) MELISSA HEITZ HR & Safety Director (HR, Payroll, Safety) MICHELLE NEWSHAM Reporting Manager (Admin., Billing) KIMBERLY SANDVIG Customer Service Manager (Customer Support) <NAME> Customer Service Representative for Transition SHELLEY BILLIK Zero Waste Manager (Diversion Services Team) Proposal for Integrated Waste Management Services City of Los Alamitos 20 Executive Team Mark Blackburn President and CEO 46 years solid waste industry experience Mark Blackburn is the company’s founder, majority owner, and chief executive officer. Mark sets the strategic direction for the company. He has piloted the company to new horizons including franchised collection operations, solid waste transfer, material recovery, organics processing, conversion technologies, and new geographic areas (New Mexico and Arizona). Mark is an innovator who investigates and experiments with new approaches and technologies. Experience Mark entered the solid waste industry in 1974 working for his father (Harry Blackburn) at Signal Hill Disposal. After a 12-year ‘apprenticeship’ in the industry and in entrepreneurship, Mark and wife Anne struck out on their own and founded Universal Waste Systems, Inc. in 1986. From one truck and one account, the company now employs 500 employees and operates 350 collection vehicles from 9 locations with over $100 million in annual revenue. Contact me: 562-941-4900 mark@ uwscompany.com Matt Blackburn Executive Vice President 20 years solid waste industry experience Matt Blackburn is the Executive Vice President and Chief Operating Officer. Matt is responsible for managing day-to-day operations for waste collection and facilities. He also oversees all support services. Matt is the primary contact for each of the jurisdictions that we serve. He has led jurisdiction transitions for UWS including the City of Los Angeles and Maywood franchise. Matt will lead our team from transition, planning, through start-up. Experience Matt joined the company working in the dispatch office. Prior to assuming the role of executive vice president in 2015, he had worked in every facet of the business. Contact me: 562-941-4900 matt@ uwscompany.com Proposal for Integrated Waste Management Services City of Los Alamitos 21 Operations Team Mitchell Blackburn Vice President of Collection Operations 15 years solid waste industry experience Michael Blackburn Vice President of Post Collection Facilities 12 years solid waste industry experience Jenese Blackburn Operations Manager – Temporary Services 10 years solid waste industry experience Ryan Blackburn General Manager – Liquid Waste Division 14 years solid waste industry experience Jonathan Jaime Operations Manager 11 years solid waste industry experience Jonathan Jaime oversees Southern California collection operations from his offices in Los Angeles and Southgate. Experience Jonathan has 11 years’ experience in solid waste collection and material processing. He joined UWS in July 2017 to assist with the roll out of UWS services in the City of Los Angeles RecycLA Northeast commercial zone. Prior to joining UWS, Jonathan was lead supervisor for Republic Service’s nine franchises in Orange County where he managed 12 supervisors and 220 collection drivers. Jonathan began his Republic Services career as a driver. Contact me: 562-941-4900 jonathan@ uwscompany.com Cris Diaz Operations Supervisor 18 years solid waste industry experience Cris Diaz manages residential and commercial collection services from our Los Angeles office. He brings a customer-centric and positive approach to problem-solving. Experience Cris has extensive solid waste experience. Prior to joining UWS in 2019, he worked 15 years for Republic Services including managing hauling operations, roll-off services, and two material recovery facilities. Contact me: 562-941-4900 cris@ uwscompany.com Proposal for Integrated Waste Management Services City of Los Alamitos 22 Brian Zuniga Dispatch Manager 17 years solid waste industry experience Adolfo Quintero manages our system-wide dispatch function and routes daily roll- off collection services from our South Gate office. We also rely upon his expertise as a member of our transition team. Experience Adolfo has worked in the waste and recycling industry for over 17 years. He joined UWS in 2017. Adolfo began his solid waste career as a customer services representative at Consolidated Disposal. He later worked as a dispatcher at both United Pacific Waste and Republic Services. Adolfo has been a part of transition teams for Gardena, Rowland Heights, El Monte, and the City of Los Angeles. Contact me: 562-941-4900 brianz@ uwscompany.com Jason Pennington Maintenance Director 7 years solid waste industry experience Jason Pennington manages vehicle maintenance and repair operations for our fleet of 500+ collection vehicles including transfer vehicles, and miscellaneous vehicles at our nine locations. Jason is also responsible for vehicle software systems, management and development of our 50 member maintenance staff, and for equipment procurement. He works from our South Gate and Los Angeles offices. Experience Jason has 18 years’ experience in fleet maintenance. He joined the UWS Team in 2017. Prior to joining UWS, he held positions of Maintenance Manager at Recology. Contact me: 562-941-4900 jason@ uwscompany.com Richard Hernandez Orange County Route Manager 5 years solid waste industry experience As the designated Orange County Route Supervisor, Richard will be assigned exclusively to the county to monitor all collections, make contact with customers regarding collection issues, and verify completion of each service work order. Richard will be available to the City’s designee by cell phone, email or radio. Contact me: 562-841-4900 Richard@ uwscompany.com Proposal for Integrated Waste Management Services City of Los Alamitos 23 Experience Richard has extensive solid waste experience. Richard has worked his way up at UWS from swamper, to driver, and now to route supervisor. Richard has experience at every level of operations. Customer Care Team Kimberly Sandvig Customer Service Manager 7 years solid waste industry experience Kimberly Sandvig manages our customer service operations supervising over 35 customer service representatives who assist our residential and commercial customers. Kim works from our Orange and Los Angeles office. Experience Kim joined UWS in 2017 with over 7 years’ solid waste experience. Prior to joining UWS, she was employed by Crown Disposal and then Recology after it acquired Crown. Kim’s prior experience includes 10 years working with special-needs children. Contact me: 562-941-4900 kim@ uwscompany.com Public Education and Outreach Shelley Billik Zero Waste Outreach & Education Manager 25 years solid waste industry experience Shelley Billik manages our Zero Waste services unit supervising 15 Zero Waste field representatives. This unit is responsible for face-to-face contact with customers to introduce them to diversion opportunities and obligations, engage customers in programs, monitor participation, and report outcomes. Experience Shelley began her affiliation with UWS in 2015 first designing and then directing the effort to enroll customers in recycling and organic recycling services in the newly awarded City of Los Angeles Commercial Solid Waste Franchise Northeast Zone. Shelley has 25+ years’ experience in sustainability and environmental programs. Prior to joining Clements Environmental (a UWS subcontractor), she served as Vice President of Environmental Initiatives for Warner Bros. Studios, Burbank, where she launched programs for waste prevention, reuse and recycling, supply chain management, energy efficiency, water conservation, green building, solar energy, and alternative fuels. Contact me: 562-941-4900 shelley@ uwscompany.com Proposal for Integrated Waste Management Services City of Los Alamitos 24 Support Services Team Michelle Newsham Reporting Manager 26 years solid waste industry experience Michelle Newsham is responsible for jurisdiction reporting (disposal & diversion tonnage and city fee payments), administrative services, and customer billing and collections. She will be a key member of our transition team. Experience Michelle is a 26-year employee of UWS. She has extensive experience with transitioning several service areas to UWS service including the City of Los Angeles, Maywood and Los Angeles County areas of Malibu, Mesa Heights, NW & NE Mountain & Bays, West Whittier, Citrus, Pioneer/Carson, and South San Gabriel. She also was integrally involved in several business acquisitions by UWS. Michelle began her career at UWS as a customer service representative and has managed the customer service function and dispatch operations. Michelle attended Mount San Antonio College, Walnut, and Chaffey College, Rancho Cucamonga. Contact me: 562-941-4900 michelle@ uwscompany.com Melissa Heitz Human Resources Manager and Safety Coordinator 7 years solid waste industry experience Melissa is responsible for our human resources function and our safety program. Experience Melissa joined UWS in 2017. Prior to joining UWS, she worked in human resources and safety for the State of California, Alameda County, and Recology, Inc. Melissa is a graduate of San Jose State University with a B. S. degree in public relations. Contact me: 562-941-4900 melissa@ uwscompany.com Proposal for Integrated Waste Management Services City of Los Alamitos 25 SECTION 6 – OTHER RESOURCES INCLUDING EQUIPMENT FACILITY DESCRIPTIONS AND UTILIZATION Landfill Facilities The GREY Container for waste collected from Residential, Multi-family and Commercial sources will be delivered to the Orange County Landfill system under the City’s waste delivery agreement. UWS will provide an option with rates for the potential to deliver waste through our Santa Fe Springs Material Recovery and Transfer facility to the Chiquita Canyon Landfill. This option will be available at the rates proposed in our price sheet labeled Option II. Processing Facilities Source-Separated Recyclable Processing The BLUE Container material collected from Residential, Multi-Family and Commercial sources will be delivered to the UWS-owned and operated material recovery facility (MRF) in Santa Fe Springs. Here recyclables are sorted, consolidated and shipped to market. Residuals Residual waste from the recyclable processing operation at the MRF will be shipped to the County of Orange under the Cities waste delivery agreement. Mixed Waste Processing UWS’ Santa Fe Springs Material Recovery and Transfer Facility (MRF) is designed for 3,000 tons per day and currently operating at about 1,500 tons per day. This facility has a full solid waste facility permit capable of processing all types of waste streams. UWS is proposing to process select commercial loads (“A” route) with high levels of recyclables at this facility for the recovery of recyclable materials. This program will be deployed to any customer that does not generate food waste or is not participating in the source separated commingled recycling program. The benefit of this type of additional processing program is the ability to ensure that 100% of the commercial customers are participating in some form of recycling program. UWS has deployed this program in other jurisdictions with a high degree of success and will work with the City staff to make this available to the Los Alamitos customer base. Proposal for Integrated Waste Management Services City of Los Alamitos 26 Source-Separated Recyclable and Mixed Waste Processing. i. Facility name & address Universal Waste Systems, Inc. 9010 and 9016 Norwalk Blvd. Santa Fe Springs, CA 90670 ii. Owner / Operator Universal Waste Systems, Inc. 9010 and 9016 Norwalk Blvd. Santa Fe Springs, CA 90670 iii. Relationship with Proposer Proposer owned iv. CalRecycle SWIS # 19-AA-1140 v. Material processed Municipal Solid Waste (MSW), Source-Separated and Commingled Recyclables and Transfer of material. vi. Price per ton Available upon request vii. Capacity guarantee UWS will guarantee adequate tonnage capacity for the City of Los Alamitos to service the proposed franchise agreement. viii. Estimated diversion rate (a) Residential source-separated mixed recyclables (85%) (b) Commercial source-separated mixed recyclables (85%) (c) Commercial source-separated OCC (98%) (d) Mixed Waste Processing (25 to 35%) California’s new organic waste mandate know as Senate Bill 1383 (SB1383) set a goal of diverting 75% of organic waste, equivalent to 20 million tons per year, from landfills by 2025. To achieve this ambitious target, California will need to construct 100 to 200 additional organic waste recycling facilities, in addition to the roughly 200 existing facilities (CalRecycle). The regulation, which applies to municipal and commercial sources, requires that the landfill-diverted organics be transformed into valuable resources: fertilizer and renewable energy. State enforcement will commence on January 1, 2022 with penalties for non-compliance of up to $10,000 per day. These changes require local governments, in conjunction with waste haulers, to deploy and implement new organic waste recycling, processing procedures and systems, and new organic recycling infrastructure. UWS believes we have develop a network of facilities to meet this requirement well in advance of the 2025 deadline. Green Waste Processing Source-Separated Green Waste The GREEN Container material collected from Residential, Multi-Family and Commercial generators will be delivered to the UWS-owned Greenwise Soil Technologies compost facility in South Gate. The facility has a maximum permitted capacity of 250 tons per day and provides a local outlet for the organic green waste from the City. Proposal for Integrated Waste Management Services City of Los Alamitos 27 Material delivered to Greenwise will be screened through a series of devices, size reduced, composted and blended in order to make a rich soil amendment available for the commercial market. UWS through its many end-use markets (Moon Valley Nursery, Kellogg’s) to name a few will use our long relationships to ensure that the material coming from the City of Los Alamitos always has a home and will not be landfilled or used as alternative daily cover (ADC). The residuals and small fractions from the compost process will be returned to the County of Orange landfill system under the City’s waste delivery agreement. Green Material Processing i. Facility name & address Greenwise Soil Technologies 10120 Miller Way South Gate, CA 90280 ii. Owner / Operator (a) Landowner: City of South Gate 8650 California Ave. South Gate, CA 90280 (213) 563-9531 (b) Facility owner/operator: Greenwise Soil Technologies 9016 Norwalk Blvd. Santa Fe Springs, CA 90670 (562) 806-6366 iii. Relationship to Proposer Proposer owned iv. CalRecycle SWIS # 19-AA-1064 v. Material processed Green material, wood waste vi. Price per ton Available upon request vii. Capacity guarantee UWS will reserve capacity at this facility to process 100% of source- separated green material collected in the City of Los Alamitos during the proposed franchise agreement. viii. Estimated diversion rate Residential GREEN Container diversion (98%). Commercial GREEN Container diversion (98%). Organic Waste Processing UWS is proposing multiple options for the processing of the organic waste from the City of Los Alamitos to meet the compliance requirements in SB1383. Because this area of diversion and recovery is still developing and there is no clear-cut favorite, we believe it is beneficial to have multiple options available to the City to meet the new legislation and diversion requirements. Therefore, we have prepared a menu of options that are priced into our rate structure and will be available to the customers. Proposal for Integrated Waste Management Services City of Los Alamitos 28 Source-Separated Commercial Food Waste and Scraps (Large Generators) The source separated Organic Container (brown) collected from Commercial customers that meet the minimum threshold as outlined in SB1383 will be provided with a separate container for the separation and collection of food waste and scraps. This material will be transferred through the SFS MRF or delivered directly to the 24th Street High Diversion Facility located in Los Angeles for processing. At the 24th street facility, the source separated organic material will be processed through the Anaergia OREX-500 for separation of the organic material from the non-organic waste. Once the organic fraction is separated, it will be delivered to the Anaergia Bio-Energy facility in Rialto for further conversion into renewable natural gas (RNG) and as well as an organic rich fertilizer. This proposed program will yield a diversion rate of approximately 85% of the organic material. Co-collected Waste and Organics (food) Container from Residential Customers UWS proposes a co-collection of waste and organics (grey cart) from the residential customers for delivery to our 24th Street High Diversion Facility. This co-collection program allows for the existing three (3) cart residential program to remain in place without contaminating the green waste by adding food scraps. As mentioned above, our existing green waste processing technology allows for the processing and marketing of the source- separated green waste material to many high quality vendors. The food waste and scraps would be placed in the waste cart (grey) where most of this material is going today in order to ensure a high level of participation and the best opportunity to recover the organic material. This material will be transferred through the SFS MRF or delivered directly to the 24th Street High Diversion Facility located in Los Angeles for processing. At the 24th street facility, the waste with the organic material will be processed through the Anaergia OREX-500 for separation of the organic fraction from the non-organic waste. Once the organic fraction is separated, it will be delivered to the Anaergia Bio-Energy facility in Rialto for further conversion into renewable natural gas (RNG) and as well as an organic rich fertilizer. This proposed program will yield a diversion rate of approximately 50 to 60% of the organic material. Co-collected Waste and Organics (food) Container from Multi-family Customers UWS proposes a co-collection of waste and organics from the multi-family customers for delivery to our 24th Street High Diversion Facility. This co-collection program allows for the existing collection of waste from multi-family customers to remain in place and not require these customers to subscribe to a separate program for the collection of organics. As you know, multi-family customers are traditionally transient in Proposal for Integrated Waste Management Services City of Los Alamitos 29 nature and education is difficult and the programs are thus tough to manage. With this proposed program, the food waste and scraps would be placed in the waste cart where most of this material is going today in order to ensure a high level of participation and the best opportunity to recover the organic material. This material will be transferred through the SFS MRF or delivered directly to the 24th Street High Diversion Facility located in Los Angeles for processing. At the 24th street facility, the waste with the organic material will be processed through the Anaergia OREX- 500 for separation of the organic fraction from the non-organic waste. Once the organic fraction is separated, it will be delivered to the Anaergia Bio- Energy facility in Rialto for further conversion into renewable natural gas (RNG) and as well as an organic rich fertilizer. This proposed program will yield a diversion rate of approximately 30 to 35% of the organic material. Conversion to Renewable Natural Gas (RNG) and High Quality Fertilizer – Anaergia Energy With mixed collection to AD, organics can be separated from MSW using Anaergia’s Organics Extrusion Press (OREX) and fed to an anaerobic digester to generate renewable energy. This approach utilizes existing infrastructure within the community to generate energy and fertilizer. In contrast, collecting organics in source separated bins is more costly, adds trucks to the road, and sending organics to compost facilities generates fertilizer that is volatile in value and thus causes capacity and tip fees to fluctuate unpredictably. Mixed waste collection and processing at the High Diversion Facility leverages local and existing anaerobic digestion infrastructure. This strategy avoids additional collection cost, new truck routes, and reliance on human separation. This strategy also provides certainty in processing all organics with reliable and long term fixed price capacity at Anaergia Energy Facility. High Diversion Organic Processing. i. Facility name & address UWS 24th Street Facility 2460 E. 24th Street Los Angeles, CA 90016 Rialto BioEnergy Facility 503 E. Santa Ana Ave. Rialto, CA 92376 ii. Owner / Operator UWS (a) Landowner: City of Rialto 150 S. Palm Ave. Rialto, CA 92376 (909) 820-2525 (b) Owner / Operator Anaergia, Inc. 5780 Fleet Street, Suite 310 Carlsbad, CA 92008 (760) 436-8870 iii. Relationship to Proposer Proposer owned Contractual relationship Proposal for Integrated Waste Management Services City of Los Alamitos 30 iv. CalRecycle SWIS # 19-AA-1251 36-AA-0446 v. Material processed Food waste Food Waste and Scraps vi. Price per ton Available upon request vii. Capacity guarantee UWS will guarantee adequate tonnage capacity for the City of Los Alamitos to service the proposed franchise agreement. viii. Estimated diversion rate See percentages list above Operating Facilities City of Los Alamitos Operating Facility UWS - South Gate Truck Terminal and Compost Facility 10120 Miller Way South Gate, CA 90280 Ancillary Orange County Operating Facility UWS Truck Terminal 2051 Placentia Ave. Costa Mesa, CA 92627 Proposal for Integrated Waste Management Services City of Los Alamitos 31 Customer Service Center Costa Mesa Customer Service Office 2051 Placentia Ave. Costa Mesa, CA 92627 Billing/ Franchise Administration/ Public Relations Corporate Office 9010-9030 Norwalk Blvd. Santa Fe Springs, CA 90670 Designated Disposal Facilities UWS has proposed to use our internal processing facilities to provide compliance with local laws and requirements, meet diversion requirements, and provide the most cost effective proposal possible. UWS has proposed to send all residual tonnage that is processed through our recycling facilities from the City of Los Alamitos back to the Orange County Landfill system. All solid waste and residuals collected will be delivered to the Orange County Landfill system. IMPLEMENTATION AND COMPLIANCE PLAN Introduction This Service Implementation Plan will ensure an efficient and orderly transition of integrated solid waste management services for the residents and businesses in the City of Los Alamitos by January 1, 2022. As noted previously in the proposal, UWS has extensive experience with service transition most recently in the City of Los Angeles and Maywood. UWS will assign a City Liaison which will be Matt Blackburn and he will be the primary contact for implementation and will personally oversee the transition. Matt coordinated the transition in the City of Los Angeles and Maywood. For purposes of the Timeline, it is assumed that the City Council will award the Franchise Agreement on August 16, 2021 and that service will commence on January 1, 2022. Pre-Award Activities Proposal Clarification At the convenience of the City’s evaluation team, UWS will respond to questions about our Proposal and provide supplemental information in a timely manner to ensure that the City can meet the timeline established in the RFP. Facilities Tour We invite the evaluation team to a guided in-person or virtual tour of our headquarters, transfer, material recovery and processing facilities. We believe the closer you look at the UWS team and facilities the better. We believe our team and facilities are a perfect fit for the City of Los Alamitos. Proposal for Integrated Waste Management Services City of Los Alamitos 32 Presentation We are available to deliver a virtual summary presentation of our Proposal to the City’s evaluation team or other designated parties and respond to their questions in a timely manner. Negotiation UWS has reviewed the proposed franchise agreement for the City of Los Alamitos and we do not request have any requested exceptions at this time. We will negotiate the final terms and conditions of the Franchise Agreement in good faith and in a timely manner. Award Activities Contract Award Our executive team will be present in-person (or virtually as conditions may dictate) to ensure that the meet the timeline established in the RFP. Our Executive Management team includes the Owners and Senior Management personnel. Execution of Agreement Within five (5) calendar days following award of the contract, our executive team will be prepared to execute the Agreement, and provide all supplemental exhibits and forms. Certificates of insurance Upon execution of the Agreement, we will file with the City Clerk copies of the certificates of liability policy forms and required endorsements evidencing the insurance required in Franchise Agreement. Performance Bond Within five (5) calendar days following execution of the Agreement, we will provide a Performance Bond described in Franchise Agreement in the amount of one-hundred and fifty thousand dollars ($150,000.00). In addition, we will provide a cash bond in the amount of fifty thousand dollars ($50,000), as required in the RFP. Recruiting Job Announcement Following the award of the franchise agreement by the City Council, our representatives will post, and distribute an Employment Announcement for employees of the current service provider who may be displaced due to the change in contractors. The announcement will provide details on a proposed job fair where UWS representatives will be available to answer questions, describe pay and benefits and offer employment. Our goal would be to employ any and all displaced workers from the current service provider. One-On-One Visit Prospective employees are also invited to meet individually by appointment with a representative of our Human Resources Department to hear more about the benefits of working for UWS. Proposal for Integrated Waste Management Services City of Los Alamitos 33 New Employee Orientation We will host a mandatory New Employee Orientation for each prospective qualified individual that joins our team. The Orientation will be held approximately 30 to 45 days before we commence services in order to ensure a safe and smooth transition . Employees will be compensated for attending the orientation. Proposal for Integrated Waste Management Services City of Los Alamitos 34 Transition Activities Customer Support Activities Customer Service Representative Training In the weeks leading up to the start of service, reference materials for use by our Customer Service Representatives will be prepared and the Customer Service Representatives will undergo training before education and outreach activities commence so that they are prepared to receive and respond to Customer inquiries. This is an area that UWS has developed over the past few transitions and has been the key to a smooth and seamless transition. We will work diligently with our CSR’s to make sure that are ready to address question during and after the transition. Customer Record Management We will solicit customer information from the outgoing contractor and the City in order to maximize the accuracy. If we can start with an accurate data base of information, we will have a successful transition. UWS worked successfully with Republic Services in the City of Los Angeles during their transition so we are confident that we can safely assume the experience would be similar. Subscriptions We will mail subscription reservation forms to each Residential Customer to determine the Customer’s preference of cart size and quantity and confirm billing information. Customers who do not respond with their subscription preferences will be assigned three 95 - gallon carts (GREY, BLUE and GREEN). Outreach Activities We will employ a multi-faceted approach to our public outreach campaign to help residents and businesses comply with the new program requirements, mandates and gain the most from our services. Below is a list of media we will use to provide for a successful implementation. Website As the recommended service provider, we will prepare a web page to illustrate our approach to public outreach. This web page will initially be available for private review by City officials and will go public after the City Council approves the Agreement. This will be a place where residents and business can go to receive update to date information in real time. Social Media After award of the agreement, we will initiate and continually utilize traditional social media outlets to inform our followers about our services and educate them regarding policies, procedures, and local and State mandates. We have found this type of communication is very effective and provides excellent data for the residents and businesses. Brochures For service roll-out, we will distribute professionally-prepared literature designed to: welcome customers, explain our services, announce service and holiday schedules, and describe local and state requirements. This brochure will be tailored to the City, the programs and provide detailed information on all ancillary services. Proposal for Integrated Waste Management Services City of Los Alamitos 35 Town Hall Meeting Prior to the start of service, we will host a town hall meeting to introduce ourselves to the community and describe services and local and state requirements. UWS believes this is a good way to get out in front of the community so they can but face with the name of the company. UWS is prepared to provide for multiple town hall meetings in necessary. Neighborhood Organizations Prior to the start of service, we will seek out neighborhood organizations to arrange to meet with residents in a more intimate multi-lingual setting to explain our services and local and state requirements. A special emphasis of this outreach will be directed to owners and managers of multi-family complexes. Business Organizations We will arrange to meet with members of business organizations to explain our services and local and state requirements. A special focus of this outreach will be directed owners and managers of eating and drinking establishments to help them understand their recycling and organic waste recycling obligations. Public Facility Managers We will reach out to individual public agency facility managers in an effort to establish model programs that maximize diversion. Mandatory Recycling Program Outreach As described in the Mandatory Recycling Programs Implementation Plan Section, our Zero Waste Account Representatives will make in-person contact with the representatives of each business establishment and each Multi-Family complex to confirm account information, explain service options and requirements, and arrange for service subscriptions. Operational Activities and Equipment Training In the weeks leading up to starting service, we will conduct mandatory off-hour training sessions to familiarize transitioning employees with our procedures and technologies. Transitioning employees will be compensated for attending training sessions. This early activity with the personnel assigned to the City of Los Alamitos will again provide for a seamless transition with minimal disruption to the services. Routing We will optimize our collection routes with a computerized routing system and onboard devices that provide each driver all needed information for each stop including turn-by-turn directions. These data- driven driver assists will enable our drivers to complete routes error free. We will work to match the existing routes deployed by your current service provider in order to minimize the disruption to the customers. Proposal for Integrated Waste Management Services City of Los Alamitos 36 Collection Vehicles We currently have a sufficient number of new Renewable Natural Gas (RNG) powered collection vehicles to fulfill the requirements of the Agreement. We will not need to procure any additional equipment to meet the service requirements in the agreement. Collection vehicles used in the City of Los Alamitos will be equipped with 3rd Eye Systems fleet management and recording mobile camera systems. This latest technology provides us with turn by turn review of the driver’s activities as well as a camera system that provides documentation of our services and records the driver’s daily performance. Containers Carts Following execution of the agreement, we will place the order for the carts to be distributed to Residential and Commercial customers receiving individual cart collection. We have currently have stock of carts with our manufacture that could fulfill the cart requirements for the City of Los Alamitos. Each residential and commercial customer utilizing cart service will receive a new set of carts one-week prior to their collection day (e.g., customers whose regular collection day will be Monday January 3, 2022. For most customers, that delivery schedule should synchronize with the last scheduled collection day performed by the outgoing service provider. Each set of new carts distributed curbside will include a securely attached welcome packet in a weather- resistant pouch providing the customer with details on the upcoming program. Commercial Bins & Roll-Off Containers We currently maintain a working inventory of commercial bins and roll-off containers to meet the needs of our existing Customers. Following execution of the agreement, we will place orders for additional commercial bins and roll-off boxes if necessary so that we have a sufficient number of containers to satisfy the needs of the customers. UWS will procure additional containers if necessary and coordinate delivery of our containers with the remove of the current contractor’s containers at one time. This approach eases the coordination of container removals and deliveries, works best with limited enclosure space and makes for a seamless transition for the Customer. The implementation timeline assumes that container assets will be acquired from the outgoing service provider. Proposal for Integrated Waste Management Services City of Los Alamitos 37 AUTOMATED CART DESCRIPTION The following is a description of the carts that we propose for the County of Orange. Manufacturer Carts provided by UWS will be two-wheeled industry standard carts manufactured by Toter, a Wastequip brand (https://www.toter.com/waste-haulers) or equivalent. Carts will be manufactured of medium density polyethylene (MDPE) using a stress-free rotational molding process. All carts shall be equipped with 2 wheels mounted on a steel axle, handles integrally molded as part of the cart body, and permanently attached lids. Toter brand carts are manufactured of up to 50% recycled plastic and steel parts contain up to 80% recycled steel. Cart Sizes Subscribers utilizing cart service will have a choice of three (3) cart sizes for each material:  32-gallon (70-pound minimum load capacity);  64-gallon (130-pound minimum load capacity; and,  96-gallon (200-pound minimum load capacity. SB 1383 Compliance The carts described herein comply with SB 1383 requirements for purpose, color, identification and labeling. Color See below. Proposal for Integrated Waste Management Services City of Los Alamitos 38 Identification The top of each cart lid will be hot stamped denoting the acceptable material type for that cart (e.g., ‘Refuse’, ‘Recyclable Materials’, ‘Organic Waste’) in English, Spanish, and Mandarin. Labels An adhesive label will be affixed to the underside of the lid of each cart indicating the primary materials accepted and the primary materials prohibited for each container. We intend to utilize the model labeling provided by CalRecycle if available. Colors Residential Service In our residential collection system, we will provide subscribers with uniform black carts equipped with lids of different colors to distinguish acceptable materials (with City approval):  GREY lid for nonorganic and non-recyclable waste;  BLUE lid for nonorganic mixed recyclables, and paper, wood & lumber; and,  GREEN lid for green and food waste. Commercial Food Waste When volumes or storage space warrant, generators of commercial food waste will be provided a cart with a BROWN lid for depositing source-separated food waste for collection. Cart Condition All carts provided to customers at the inception of service will be newly manufactured and unused. Subsequently, carts provided to customers as additions or replacements may be refurbished carts in good serviceable condition and steam cleaned so as to be free of debris and contaminants. COLLECTION VEHICLE DESCRIPTION Collection Vehicles UWS will deploy a compliment of new vehicles to perform the collection work in the Franchise Agreement. Delivery of new collection vehicles requires a lead-time of approximately 18-months however, we currently have the vehicles for the City of Los Alamitos in our possession and ready for service. Those vehicle groupings depicted as ‘New’ are new vehicles in our possession that are reserved to be deployed in the City of Los Alamitos. Proposal for Integrated Waste Management Services City of Los Alamitos 39 Residential (Cart Service) Collection Vehicles Qty Make Area # Body Model Year Fuel Type 2 Mack LEU Los Al Automated side loader 2020 RNG Commercial (Bin Service) Collection Vehicles Qty Make Area # Body Model Year Fuel Type 3 Mack MR Los Al Front loader 2020 RNG Roll-Off Collection Vehicles Qty Make Area # Body Model Year Fuel Type 1 Mack MR Los Al Roll-Off 2019 RNG Miscellaneous Vehicles Qty Make Area # Body Model Year Fuel Type 1 GMC Colorado 7 Scout Truck 2021 Gas Proposal for Integrated Waste Management Services City of Los Alamitos 40 Safety Features Our collection vehicles will be equipped with a 5-camera safety monitoring system, hosted by 3rd Eye Systems. The 3rd Eye System monitors drivers, driving habits, speeds, and hard braking. The 3rd Eye System also provides the driver with a 360-degree view of the truck from his cab for increased safety. BULKY ITEM COLLECTION After reviewing the draft agreement, UWS proposes to handle the bulky-item collection as required in the RFP as well as provide an on-call service if a resident or multi-family residents is in need of additional service. UWS proposes to use a flatbed collection vehicle to complete the bulky item collection program. Using a flatbed for collection will allow us to bring the items back to our fleet yard to determine the best use for the items prior to disposal. UWS will use best management practices to follow the hierarchy of reuse, disassemble for reuse or recycling, recycle, and disposal. UWS will encourage customers to provide accurate information of the items that are being collected. UWS will encourage customers to donate to Goodwill or Salvation Army similar programs as much as possible. Monthly Abandoned Item Sweep and Clean-up UWS proposes to meet the requirements in the RFP and Franchise Agreement related to the monthly abandon item sweep service. UWS will provide a monthly collection of abandon items in in the public right of way. In addition, UWS will also survey the areas on a weekly basis during residential collection to ensure that abandon items are not accumulating on a weekly basis. UWS drivers will document where items are located and provide that information to dispatch to have a bulky-item collection truck collect them in order to try and minimize the accumulation of these types of items. This additional service is included in the proposed rate structure. Proposal for Integrated Waste Management Services City of Los Alamitos 41 Household Hazardous Waste Collection (HHW) UWS proposes to maintain the existing quarterly Household Hazardous Waste (HHW) Collection Program as required in the Franchise Agreement. We propose to have the events as proposed below on the first Saturday of each month: March June September December UWS will use its proposed public education campaign and brochures to advise the residents of the events and the schedule. These events will need approval from the City as well as a central location in the City to hold the event. Each event would be held from 8:00am to 2:00pm on th e first Saturday of the months proposed. UWS will further advertise the County of Orange permanent locations for residents to dispose of Household Hazardous Waste (HHW) so residents have an option for disposal of items during the times the events are not held. Prior to the first event, UWS will work with the City’s staff to coordinate the first event and approve any proposed sub-contracts if any for the event. Proposal for Integrated Waste Management Services City of Los Alamitos 42 SECTION 7 – SAFETY RECORD 1. Workers Compensation Experience Modification (Exmod) for the business, and or all rated subsidiaries operating in California (if the business has not operated in California, please provide all data for the business in other States) Experience Mod currently is .98 2. Total Recordable Injury Rates (TRIR) for past 5 years, for each establishment working in California 2020  Santa Fe Springs facility: 4  South Gate facility: 7  Los Angeles facility: 4  Costa Mesa facility: 6  Perris facility: 3 2019  Santa Fe Springs facility: 0  South Gate facility: 7  Los Angeles facility: 4  Costa Mesa facility: 2  Perris facility: 1 2018  Santa Fe Springs facility: 5  South Gate facility: 6  Los Angeles facility: 8  Costa Mesa facility: 0  Perris facility: 2 3. Included is a copy of our Safety Plan and/or Documents including but not limited to Injury and Illness Prevention Plan (IIPP), Code of Safety Practices and other Safety Plans See attached documents labeled:  Injury and Illness Prevention Program (IIPP)  Code of Safe Practices  Hearing Conservation Program  Hot Work Program  Covid Infectious Disease Preparedness and Response Plan  Contractor Safety Program  Proposal for Integrated Waste Management Services City of Los Alamitos 43 Company’s Safety Program Accidents are caused, they do not just happen. Therefore, we believe that nearly all accidents are preventable. Accidents destroy manpower and material resources. They are a waste of assets that we cannot afford to waste. Because accidents are both preventable and wasteful, we want all employees to join with us and participate in an aggressive, effective and continuing accident prevention and control program. To the best of our ability, we provide the best equipment, the safest facilities, and necessary people to accomplish all our tasks safely and economically. The real power behind production without accidents is personal concern and motivation. We expect each supervisor and every single employee to participate in the program. The prevention of accidents is not someone else's concern, it is our concern and our employees’ concern. We expect supervisors to provide for the prompt and aggressive investigation of accidents and near misses, to determine their causes. We expect personal and prompt corrective action to be taken after each accident. Further, periodic safety inspections are performed of each work area to determine what corrective actions must be taken to insure a safe and healthful working environment. Each employee is, to a large degree, directly responsible for, and in control of, his personal safety both on and off the job. To promote the individual safety of each of us and those with whom we come in contact with, rules and regulations must be adhered to. We expect each employee, from our most senior to our newest trainee, to comply with these regulations at all times. These safety regulations are designed with but one objective in mind, to keep from getting hurt and to avoid hurting others. The price of accidents and injuries in human suffering and in dollars and cents is high, and rising. It can only be stopped and reduced if everyone knows, accepts and fully carries out accident prevention as his/her own personal responsibility. In order to reach the goal of having an accident free work environment, UWS has created its workplace safety program. The program is comprised of many parts. These parts include:  The pre-hire process  The new hire process/safety orientation  New hire mentoring  Safety program implementation  Personal Protective Equipment  Training  Evaluation/Observations  Inspections  Accident Investigations and Corrective Actions  Record Keeping Proposal for Integrated Waste Management Services City of Los Alamitos 44 Pre-hire Process Before someone is hired as a team member at UWS, they are interviewed and evaluated by experienced staff members to assure that they are not just technically qualified for the position they are applying for, but that they also have the proper mindset to want to work safely and professionally. This creates the base for a safe employee. New Hire Process All new UWS employees undergo a New Hire Safety Orientation on their first day of employment, regardless of their position in our organization. Any position in any workplace has inherent hazards and therefore a new hire orientation prepares new employees with the knowledge to recognize work related hazards of all types, as well as how to mitigate or eliminate them. Knowledge is a powerful tool in injury prevention, therefore learning about our safe practices, policies and programs is important. The safety orientation is normally performed by a member of the Safety Department and covers various topics, such as our Injury & Illness Prevention Program, Lockout/Tagout, First Aid basics, Fire Prevention and Extinguisher use, Heat Illness Prevention, Personal Protective Equipment, etc. New Hire Mentoring New hires also go through some level of mentoring by other skilled and experienced employees in their departments. Not only do they first get to observe and acclimate to their positions, but they are also mentored on how to perform their duties safely. This is an important stage for all new hires because they get the opportunity to learn how to perform their duties safely from someone else who has performed similar duties for years. For example, for drivers, the mentoring involves a period of ride-a-longs with an experienced driver that will observe driving skills, vehicle inspections and overall job performance. It also helps remove some of the anxiety of working in a new position, which allows the individual to better concentrate on his/her tasks. Safety Program Implementation In order to develop a safe work environment, UWS has created safety programs to help set the structure for developing safe work practices and also for complying with OSHA standards. Safety programs are living documents and must not only be developed and implemented, but also modified from time to time to remain current with regulations o r to adjust to changes in work related hazards. Typical safety programs at UWS include:  IIPP  Heat Illness Prevention  Emergency Action Plan/Fire Prevention Plan  Hazard Communication  Hazardous Waste Identification  Infectious Disease & Response Plan  Hearing Conservation Program  Energy Control (lockout/tagout)  Code of Safe Practices  Hot work Program Proposal for Integrated Waste Management Services City of Los Alamitos 45 Personal Protective Equipment Whenever administrative controls or engineering controls are not enough to eliminate a hazard, then we must consider personal protective equipment (PPE) to further protect our employees. Typical considerations for protecting our employees are the nature of the hazard, such as dust or abrasion hazards, as well as the part of the body that may be affected. PPE is carefully selected for our employees in order to provide them a product that will offer them the appropriate level of protection, while also offering comfort and mobility. Examples of PPE used at UWS for certain parts of the body are as follows:  Head Protection: Hard hats, Welding caps  Face and Eye Protection: Faceshields, Safety Glasses, Goggles, Cutting Glasses, Welding Hoods  Respiratory Protection: Cloth masks, KN95s, N95s  Hearing Protection: Ear Plugs, Earmuffs  Body Protection: Uniforms, Welding Leathers, Tyvek Suits, Denim Sleeves  Hand Protection: Leather gloves, Nitrile Disposable Gloves, Nitrile Coated and Rubber Coated Abrasion Resistant Gloves  Foot Protection: PVC boots, Safety Toe Boots The aforementioned PPE is provided at no cost to our employees and is replaced as necessary to keep our team injury free while working with various commodities, surfaces and environments. Training As mentioned previously, the more knowledgeable an employee is regarding how to perform his/her job safely, the less likely it will be that he/she will suffer a work related injury. Our employees therefore receive new hire safety training on their first day of employment, on-the- job training and regular safety training in the form of weekly safety meetings. The safety meetings not only cover regulatory topics such as Heat Illness Prevention or PPE, but cover function specific topics such as proper lifting techniques or distracted driving. In the following list are examples of other topics covered during the safety training sessions:  Slips and Falls  Driving in the Rain  Blind Spot Awareness  Covid Prevention  How to Inspect a Fire Extinguisher  Emergency Procedures for Load Fires  Backing Safely  Staying Hydrated  Rodent, Snakes and Insects  Lithium Battery Fire Safety  Cell Phone Distractions As you can see from this small sampling of topics, the variety spans the safety spectrum. Additionally, certain employee groups also receive specialized training such as forklift and aerial lift certification training and our drivers attend Smith System Defensive Driving training. Proposal for Integrated Waste Management Services City of Los Alamitos 46 Evaluation/Observations Informal safety and performance evaluations are performed on a daily basis by supervisors and lead employees while their team members are in the field, servicing customers or while working within our facilities. This allows for lead and supervisory personnel to evaluate the safe work habits of their peers. If areas of improvement are observed, they bring them to the individual’s attention right away in order to prevent an injury. Additionally, our management team may also select certain individuals for more formalized observations either for random assessments or for post incident reviews. These observations are documented on a specific safety observation form. Individuals are observed for safe work habits and are then provided with feedback on both positive actions as well as areas for improvement. This type of activity helps to strengthen the concept that workplace safety is always an important consideration in any task and promotes discussion of safe work concepts. Inspections Safety inspections are part of a regular process to look for safety hazards and if found, to develop corrective actions to mitigate or eliminate them promptly. On the day to day level, drivers and equipment operators perform daily vehicle and equipment inspections to assure that prior to using these units, that they are safe for operation. If they discover an out of service safety item such as a non-functioning backup alarm, the unit is taken out of service until repaired. Additionally, facility personnel perform daily informal walkthrough inspections of their work areas to address hazards prior to the start of their work day. On a monthly basis, a member of the Safety Department also performs a documented safety inspection and prepares a report with his/her findings and distributes it to the facility manager for the correction of any noted deficiencies. Accident Investigations and Corrective Actions On occasion, a situation may arise which leads to the undesirable consequence of an incident, such as an auto accident or of an injury. Since most incidents and injuries are preventable because they are caused by an unsafe act or unsafe condition, whenever such an occurrence takes place, it is important to investigate its cause. It is the UWS practice to have a supervisor investigate an injury or incident immediately. If the incident occurs offsite, the supervisor will drive to the scene to assure that any injured parties are taken care of and to gather as much evidence as possible before the scene is disturbed. All incidents undergo a root cause investigation to determine to true cause and therefore to determine the appropriate corrective action. Investigations are documented initially via the UWS 6 Hour Report and documented further as deemed necessary. Recordkeeping Records that document the implementation of our safety programs will be maintained by the Safety Department. These records will be maintained for the appropriate time frames and consist of:  OSHA Logs  Inspection Reports  Investigation Files  Safety Training Records Proposal for Integrated Waste Management Services City of Los Alamitos 47  Medical Surveillance Records  Exposure Records These records are typically confidential in nature and maintained for in-house use and only released to appropriate authorized personnel or authorized agencies. Currently UWS follows any/all inspection requirements (pertaining to our business type) set forth by both the California CHP BIT program as well as the Department of Transportation CFR (Code of Federal Regulations) sections 396.11 through 396.25 Regarding Inspections and record keeping. (see below for reference). Out of Service Criteria: UWS adheres to FMCSA/CVSA North American Standard of Out of Service Criteria. In the event that a defect is discovered/reported and is identified as an Out of Service defect based on the North American Standard of Out of Service Criteria, the unit is placed Out of Service until safely repaired. Fleetio Maintenance software Universal waste Systems utilizes an app based Maintenance Software system named Fleetio to track and monitor vehicle inspections performed by both drivers and inspector qualified maintenance personal. Driver vehicle inspection report(s). Driver pre and post trip Inspections are submitted digitally twice a day through Fleetio. Drivers have the ability to comment as well as photograph any defect found on their inspection form at the time of inspection. Following the completion of a drivers pre/post trip inspection, Fleetio notifies, via email, multiple maintenance personal of any reported defect, providing maintenance staff the ability to see reported defects in real time. (See sample form below) Maintenance Vehicle Inspections: Vehicle Maintenance inspections are performed every ninety days in accordance with the California BIT program set forth and monitored by the California Highway Patrol. Maintenance inspections are performed digitally using Fleetio and defects are emailed in real time to multiple Maintenance staff. Technicians have the ability to comment, and/or submit a photograph of any defect discovered at the time of inspection. If a discovered defect is falls under the Out of service Criteria the vehicle is placed Out of Service until safely repaired. (See sample form below) Proposal for Integrated Waste Management Services City of Los Alamitos 48 Driver vehicle inspection report (DVIR Form) Sample 1 of 2 Proposal for Integrated Waste Management Services City of Los Alamitos 49 Driver vehicle inspection report (DVIR Form) Sample 2 of 2 Proposal for Integrated Waste Management Services City of Los Alamitos 50 SECTION 8 – OWNERSHIP AND FINANCIAL RECORDS Business Structure Proposing Entity Universal Waste Systems, Inc. (“UWS”) is a C-corporation organized in the State of California. Financial Statements As the proposing entity, UWS will provide the necessary financial statements as required by the City. Years in Operation UWS was formed as a California corporation in 1986 and is in good standing with the California Secretary of State. Officers The officers of UWS are: UWS Officers Name Office Mark Blackburn Chief Executive Officer & Chief Financial Officer Anne Blackburn Secretary Matt Blackburn Executive Vice President Corporate Headquarters Corporate headquarters: 9010-9016 Norwalk Boulevard, Santa Fe Springs, CA 90670. Mailing Address: P.O. Box 3038, Whittier, CA 90605-308. Financial Statements Financial Statements for Universal Waste Systems, Inc. are prepared on a ‘reviewed’ basis annual and will be made available for the City upon request. Fiscal Year Our fiscal year ends September 30th; the most recently completed fiscal year for which financial statements are available is the fiscal year ended September 30, 2020. Proposal for Integrated Waste Management Services City of Los Alamitos 51 SECTION 9 - INSURANCE Insurance Information Proof of insurance is attached that meets the required coverages in the Draft Franchise Agreement. Below is a list of the policies and policy numbers as requested in the RFP. Also as an attachment is a list of previous and pending claims against the polici es for 2018, 2019 and 2020. Insurance Type Firm Policy # Contact Information General Liability Crum & Forster EPK-136137 Erin Viker 208-577-6769 Automotive National Interstate WAR8310012-04 Erin Viker 208-577-6769 Workers Compensation National Interstate WRW8310012-02 Erin Viker 208-577-6769 Environmental Crum & Forster EPK136137 Erin Viker 208-577-6769 Proposal for Integrated Waste Management Services City of Los Alamitos 52 SECTION 10 – REFERENCES Table 1 Current Exclusive Franchise Agreements by Jurisdiction & Years of Service Jurisdiction Service Period Customer Types Service Performed Residential Collection Method Contact Information City of Los Angeles North East Area February 2017 to Present Commercial, Multi- Family, Industrial -Refuse- -Recycling- -Organic Waste- -C&D- Multi-Family (carts & bins) Mr. Daniel Meyers Division Manager LA Dept. of Sanitation 1149 S. Broadway St. 5th Floor Los Angeles, CA 90015 213-446-2199 County of Los Angeles For all LA County franchise areas: Mr. Steve Milewski Senior Civil Engineer County of Los Angeles Department of Public Works 900 S. Fremont Ave. Alhambra, CA 91803 626-458-3573 West Whittier Area April 2007 to Present Residential Refuse, Recycling, Green waste, C&D Bulky Items, E-Waste, Shredding Automated City of Maywood March 2020 to Present Commercial, Multi- Family, Residential Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Ms. Jennifer Vasquez 4319 E. Slauson Ave. Maywood, CA 90270 323-562-5712 Table 2 Current Non-Exclusive Franchise Agreements by Jurisdiction & Years of Service Jurisdiction Service Period Customer Types Service Performed Residential Collection Method Contact Information City of Costa Mesa Oct. 2010 to Present Commercial, Multi- Family, Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Mr. Mike Balliet City Consultant City of Costa Mesa City of Newport Beach Oct. 2010 to Present Commercial, Multi- Family, -Refuse- -Recycling- n/a Mr. Micah Martin Deputy Public Works Director City of Newport Beach Proposal for Integrated Waste Management Services City of Los Alamitos 53 Industrial, Roll-Off -Organic waste- -C&D- 592 Superior Ave., Bldg. A Newport Beach, CA 92663 949-718-3466 City of Irvine Oct. 2010 to Present Commercial, Multi- Family, Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Public Works Department 1 Civic Center Plaza Irvine, CA 92606 949-724-6357 Table 2, continued Current Exclusive Franchise Agreements, continued Jurisdiction Service Period Customer Types Service Performed Residential Collection Method Contact Information County of Los Angeles, continued See previous page for County of Los Angeles contact info. Pioneer / Carson Park Area Sept. 2011 to Present Residential Refuse, Recycling, Green waste, C&D Bulky Items, E-Waste, Shredding Automated Mesa Heights Garbage Disposal District July 2013 to Present Residential, Commercial, Multi- Family Refuse, Recycling, Green waste, C&D Bulky Items, E-Waste, Shredding Automated South San Gabriel Area July 2014 to Present Residential Refuse, Recycling, Green waste, C&D Bulky Items, E-Waste, Shredding Automated Citrus, Charter Oak, Ramona Area Nov. 2014 to Present Residential Refuse, Recycling, Green waste, C&D Bulky Items, E-Waste, Shredding Automated Proposal for Integrated Waste Management Services City of Los Alamitos 54 Table 2 Current Non-Exclusive Franchise Agreements by Jurisdiction & Years of Service Jurisdiction Service Period Customer Types Service Performed Residential Collection Method Contact Information County of Los Angeles Feb. 2004 to Present Commercial, Multi- Family, Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Ms. Willa Zheng Administrative Assistant County of Los Angeles Department of Public Works 900 S. Fremont Ave. Alhambra, CA 91803 626-458-3530 City of Malibu Feb. 2004 to Present Commercial, Multi- Family, Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Ms. Rebecca Nelson-Brown Administrative Assistant Environmental Programs City of Malibu 23825 Stuart Ranch Rd. Malibu, CA 90265 310-456-2489, Ext. 286 City of Agoura Hills Feb. 2004 to Present Commercial, Multi- Family, Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Mr. Louis A. Celya Deputy City Manager City of Agoura Hills 3001 Ladyface Ct. Agoura Hills, CA 91301 818-597-7314 City of Glendale Feb. 2004 to Present Commercial, Multi- Family, Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Mr. Dennis Hargrove Assistant Director of Public Works City of Glendale 548 W. Chevy Chase Dr. Glendale, CA 91204 818-548-3916 City of Burbank Feb. 2004 to Present Commercial, Multi- Family, Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Ms. Amy Hammes Recycling Specialist City of Burbank 500 S Flower St. Burbank, CA 91502 818-238-3903 City of Vernon Feb. 2004 to Present Commercial, Multi- Family, Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Mr. Frederick Agyin Director Health & Environmental Control Department City of Vernon 4305 S. Santa Fe Ave. Vernon, CA 90058 323-583-8811 Proposal for Integrated Waste Management Services City of Los Alamitos 55 City of Bell Gardens Feb. 2004 to Present Commercial, Multi- Family, Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Ms. Veronica Sanchez Administrative Specialist City of Bell Gardens 8237 Garfield Ave. Bell Gardens, CA 90201 562-806-7770 Table 2, continued Current Non-Exclusive Franchise Agreements by Jurisdiction & Years of Service Jurisdiction Service Period Customer Types Service Performed Residential Collection Method Contact Information City of Commerce Feb. 2004 to Present Commercial, Multi- Family, Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Linda Wright Administrative Assistant City of Commerce 2535 Commerce Way Commerce, CA 90040 323-722-4805, Ext. 2331 City of Long Beach Feb. 2004 to Present Commercial, Multi- Family, Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Ms. Sarah Adams Recycling Specialist City of Long Beach 2929 Willow Ave. Long Beach, CA 90807 562-570-2852 City of Montebello Feb. 2004 to Present Commercial, Multi- Family, Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Public Works Department 1600 W. Beverly Blvd. Montebello, CA 90604 323-887-4555 City of Pasadena Feb. 2004 to Present Commercial, Multi- Family, Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Mr. Carmen Rubio Department of Public Works City of Pasadena 233 W. Mountain St., #235 Pasadena, CA 91109 626-744-7162 crubio@cityofpasadena.net City of Torrance Feb. 2004 to Present Commercial, Multi- Family, Industrial, Roll-Off -Refuse- -Recycling- -Organic waste- -C&D- n/a Ms. Wendy Wu 3031 Torrance Blvd. Torrance, CA 90503 310-781-7679 Proposal for Integrated Waste Management Services City of Los Alamitos 56 SECTION 11 – DISPOSAL AND PROCESSING FACILITY CAPACITY FACILITY DESCRIPTIONS AND UTILIZATION Landfill Facilities The GREY Container for waste collected from Residential, Multi-family and Commercial sources will be delivered to our Santa Fe Springs Material Recovery Facility for processing and recovery of recyclables and organics. UWS will ship the residual waste after the secondary processing to the County of Orange landfill system. Processing Facilities Source-Separated Recyclable Processing The BLUE Container material collected from Residential, Multi-Family and Commercial sources will be delivered to the UWS-owned and operated material recovery facility (MRF) in Santa Fe Springs. Here recyclables are sorted, consolidated and shipped to market. Residuals Residual waste from the initial recyclable processing operation at the SFS MRF will be shipped to our Pico Rivera secondary Material Recovery Facility to recover additional mixed waste paper, plastics including film plastic. We believe that UWS is the only company that will propose a secondary processing option for the City of Los Alamitos which will ensure maximum diversion and compliance with the agreement. Mixed Waste Processing UWS’ Santa Fe Springs Material Recovery and Transfer Facility (MRF) is designed for 3,000 tons per day and currently operating at about 1,500 tons per day. This facility has a full solid waste facility permit capable of processing all types of waste streams. UWS is proposing to process select commercial loads (“A” route) with high levels of recyclables at this facility for the recovery of recyclable materials. This program will be deployed to any customer that does not generate food waste or is not participating in the source separated commingled recycling program. The benefit of this type of additional processing program is the ability to ensure that 100% of the commercial customers are participating in some form of recycling program. UWS has deployed this program in other jurisdictions with a high degree of success and will work with the City staff to make this available to the Los Alamitos customer base. Proposal for Integrated Waste Management Services City of Los Alamitos 57 Source-Separated Recyclable and Mixed Waste Processing. i. Facility name & address Universal Waste Systems, Inc. 9010 and 9016 Norwalk Blvd. Santa Fe Springs, CA 90670 ii. Owner / Operator Universal Waste Systems, Inc. 9010 and 9016 Norwalk Blvd. Santa Fe Springs, CA 90670 iii. Relationship with Proposer Proposer owned iv. CalRecycle SWIS # 19-AA-1140 v. Material processed Municipal Solid Waste (MSW), Source-Separated and Commingled Recyclables and Transfer of material. vi. Price per ton Available upon request vii. Capacity guarantee UWS will guarantee adequate tonnage capacity for the City of Los Alamitos to service the proposed franchise agreement. viii. Estimated diversion rate (a) Residential source-separated mixed recyclables (85%) (b) Commercial source-separated mixed recyclables (85%) (c) Commercial source-separated OCC (98%) (d) Mixed Waste Processing (25 to 35%) California’s new organic waste mandate know as Senate Bill 1383 (SB1383) set a goal of diverting 75% of organic waste, equivalent to 20 million tons per year, from landfills by 2025. To achieve this ambitious target, California will need to construct 100 to 200 additional organic waste recycling facilities, in addition to the roughly 200 existing facilities (CalRecycle). The regulation, which applies to municipal and commercial sources, requires that the landfill-diverted organics be transformed into valuable resources: fertilizer and renewable energy. State enforcement will commence on January 1, 2022 with penalties for non-compliance of up to $10,000 per day. These changes require local governments, in conjunction with waste haulers, to deploy and implement new organic waste recycling, processing procedures and systems, and new organic recycling infrastructure. UWS believes we have develop a network of facilities to meet this requirement well in advance of the 2025 deadline. Proposal for Integrated Waste Management Services City of Los Alamitos 58 Green Waste Processing Source-Separated Green Waste The GREEN Container material collected from Residential, Multi-Family and Commercial generators will be delivered to the UWS-owned Greenwise Soil Technologies compost facility in South Gate. The facility has a permitted capacity of 250 tons per day and provides a local outlet for the organic green waste from the City. Material delivered to Greenwise will be screened through a series of devices, size reduced, composted and blended in order to make a rich soil amendment available for the commercial market. UWS through its many end-use markets (Moon Valley Nursery, Kellogg’s) to name a few will use our long relationships to ensure that the material coming from the City of Los Alamitos always has a home and will not be landfilled or used as alternative daily cover (ADC). The residuals and small fractions from the compost process will be returned to the County of Orange landfill system under the City’s waste delivery agreement. Green Material Processing i. Facility name & address Greenwise Soil Technologies 10120 Miller Way South Gate, CA 90280 ii. Owner / Operator (a) Landowner: City of South Gate 8650 California Ave. South Gate, CA 90280 (213) 563-9531 (b) Facility owner/operator: Greenwise Soil Technologies 9016 Norwalk Blvd. Santa Fe Springs, CA 90670 (562) 806-6366 iii. Relationship to Proposer Proposer owned iv. CalRecycle SWIS # 19-AA-1064 v. Material processed Green material, wood waste vi. Price per ton Available upon request vii. Capacity guarantee UWS will reserve capacity at this facility to process 100% of source- separated green material collected in the City of Los Alamitos during the proposed franchise agreement. viii. Estimated diversion rate Residential GREEN Container diversion (98%). Commercial GREEN Container diversion (98%). Proposal for Integrated Waste Management Services City of Los Alamitos 59 Organic Waste Processing UWS is proposing multiple options for the processing of the organic waste from the City of Los Alamitos to meet the compliance requirements in SB1383. Because this area of diversion and recovery is still developing and there is no clear-cut favorite, we believe it is beneficial to have multiple options available to the City to meet the new legislation and diversion requirements. Therefore, we have prepared a menu of options that are priced into our rate structure and will be available to the customers. Source-Separated Commercial Food Waste and Scraps (Large Generators) The source separated Organic Container (brown) collected from Commercial customers that meet the minimum threshold as outlined in SB1383 will be provided with a separate container for the separation and collection of food waste and scraps. This material will be transferred through the SFS MRF or delivered directly to the 24th Street High Diversion Facility located in Los Angeles for processing. At the 24th street facility, the source separated organic material will be processed through the Anaergia OREX -500 for separation of the organic material from the non-organic waste. Once the organic fraction is separated, it will be delivered to the Anaergia Bio-Energy facility in Rialto for further conversion into renewable natural gas (RNG) and as well as an organic rich fertilizer. This proposed program will yield a diversion rate of approximately 85% of the organic material. Co-collected Waste and Organics (food) Container from Residential Customers UWS proposes a co-collection of waste and organics (grey cart) from the residential customers for delivery to our 24th Street High Diversion Facility. This co-collection program allows for the existing three (3) cart residential program to remain in place without contaminating the green waste by adding food scraps. As mentioned above, our existing green waste processing technology allows for the processing and marketing of the source- separated green waste material to many high quality vendors. The food waste and scraps would be placed in the waste cart (grey) where most of this material is going today in order to ensure a high level of participation and the best opportunity to recover the organic material. This material will be transferred through the SFS MRF or delivered directly to the 24th Street High Diversion Facility located in Los Angeles for processing. At the 24th street facility, the waste with the organic material will be processed through the Anaergia OREX-500 for separation of the organic fraction from the non-organic waste. Once the organic fraction is separated, it will be delivered to the Anaergia Bio-Energy facility in Rialto for further conversion into renewable natural gas (RNG) and as well as an organic rich fertilizer. This proposed program will yield a diversion rate of approximately 50 to 60% of the organic material. Co-collected Waste and Organics (food) Container from Multi-family Customers UWS proposes a co-collection of waste and organics from the multi-family customers for delivery to our 24th Street High Diversion Facility. This co-collection program allows for the existing collection of waste Proposal for Integrated Waste Management Services City of Los Alamitos 60 from multi-family customers to remain in place and not require these customers to subscribe to a separate program for the collection of organics. As you know, multi-family customers are traditionally transient in nature and education is difficult and the programs are thus tough to manage. With this proposed program, the food waste and scraps would be placed in the waste cart where most of this material is going today in order to ensure a high level of participation and the best opportunity to recover the organic material. This material will be transferred through the SFS MRF or delivered directly to the 24th Street High Diversion Facility located in Los Angeles for processing. At the 24th street facility, the waste with the organic material will be processed through the Anaergia OREX-500 for separation of the organic fraction from the non-organic waste. Once the organic fraction is separated, it will be delivered to the Anaergia Bio-Energy facility in Rialto for further conversion into renewable natural gas (RNG) and as well as an organic rich fertilizer. This proposed program will yield a diversion rate of approximately 30 to 35% of the organic material. Conversion to Renewable Natural Gas (RNG) and High Quality Fertilizer – Anaergia Energy With mixed collection to AD, organics can be separated from MSW using Anaergia’s Organics Extrusion Press (OREX) and fed to an anaerobic digester to generate renewable energy. This approach utilizes existing infrastructure within the community to generate energy and fertilizer. In contrast, collecting organics in source separated bins is more costly, adds trucks to the road, and sending organics to compost facilities generates fertilizer that is volatile in value and thus causes capacity and tip fees to fluctuate unpredictably. Mixed waste collection and processing at the High Diversion Facility leverages local and existing anaerobic digestion infrastructure. This strategy avoids additional collection cost, new truck routes, and reliance on human separation. This strategy also provides certainty in processing all organics with reliable and long term fixed price capacity at Anaergia Energy Facility. High Diversion Organic Processing. i. Facility name & address UWS 24th Street Facility 2460 E. 24th Street Los Angeles, CA 90016 Rialto BioEnergy Facility 503 E. Santa Ana Ave. Rialto, CA 92376 ii. Owner / Operator UWS (a) Landowner: City of Rialto 150 S. Palm Ave. Rialto, CA 92376 (909) 820-2525 (b) Owner / Operator Anaergia, Inc. 5780 Fleet Street, Suite 310 Carlsbad, CA 92008 Proposal for Integrated Waste Management Services City of Los Alamitos 61 (760) 436-8870 iii. Relationship to Proposer Proposer owned Contractual relationship iv. CalRecycle SWIS # 19-AA-1251 36-AA-0446 v. Material processed Food waste Food Waste and Scraps vi. Price per ton Available upon request vii. Capacity guarantee UWS will guarantee adequate tonnage capacity for the City of Los Alamitos to service the proposed franchise agreement. viii. Estimated diversion rate See percentages list above PROCESSING OF MIXED WASTE UWS has provided a fully compliant program utilizing our company owned infrastructure. Our proposed program will meet and exceed current regulations and provide the City with a fully complaint SB1383 program. These facilities have been designed to provide additional process options if necessary to meet new regulations and meet or exceed diversion requirements. If UWS needs to implement a mixed waste processing option for customers that aren’t recycling, we will provide that service utilizing our Santa Fe Springs Universal Resource Recovery Facility. The site is currently permitted for mixed waste processing, but we are only utilizing the facility for source separated recycling. There will be no additional cost for the customer for processing if the need is determined by UWS to meet the diversion requirements. The have provide details on the mixed waste processing option in the Section titled Facility Description. Proposal for Integrated Waste Management Services City of Los Alamitos 62 MINIMUM RECYCLING AND DIVERSION REQUIREMENTS Universal Waste Systems Inc. has reviewed the Draft Franchise Agreement and understands the requirement to divert recyclable material and organics from the landfill in order to ensure that the City is in compliance with current legislation (AB939, AB341 and SB1383). UWS encourages the City and the members of the review committee to pay close attention to this section as it will provide the roadmap for the City to be in full compliance with all current legislation. We believe that the proposed programs offered by UWS are superior to the other competitors and will ensure that the City meets its compliance obligations established by the CalReycle. UWS as noted in the table below, will guarantee that the City reaches fifty (50) percent diversion of the waste collected by our company under the Franchise Agreement. Waste Stream Annual Tons Collected Annual Tons Diverted Tons Diverted as % of Tons Collected Recycling Organics C&D MRF Other Total Diverted Residential Cart Refuse 2,352 470 - 470 20% Residential Cart Recyclables 624 530 530 85% Residential Cart Greenwaste/Food Waste 804 788 788 98% Commerical & Mult-family Refuse 6,216 2,176 2,176 35% Commercial Commingled Recyclables 96 86 86 90% Commercial Organics 1,560 1,326 1,326 85% Roll-Off Service 3,456 1,296 864 2,160 63% Proposal for Integrated Waste Management Services City of Los Alamitos 63 Holiday Trees / Bulky Items / Neighborhood Cleanups / Special Events / Other 1,380 690 690 50% Total 16,488 617 2,584 1,296 3,040 690 8,227 50% Proposal for Integrated Waste Management Services City of Los Alamitos 64 SECTION 12 – ENVIRONMENTAL RECORDS Past and Pending Litigation We identify two cases that are reportable as civil legal filings involving the Company, key personnel, owners and officers, and Los Angeles County-based affiliates, which are currently pending, filed, settled, or otherwise dispositioned during the last ten years. There are no reportable misdemeanor, felony, or administrative legal filings. Private Party Case related to a Government Filing (Dismissed in 2020) Universal Waste Systems, Inc. (“UWS”) was one of a number of the haulers in the City of Los Angeles, all of which operate under virtually identical contracts. An apartment owners association filed an action objecting to those contracts. Accordingly, UWS was a party defendant, along with four other haulers, in a case filed in Los Angeles County Superior Court, which was captioned as follows: Apartment Owners Association of California, Inc., et al., v. Arakelian Enterprises, Inc., et al., Case Number BC 705056. The parties plaintiff were (i) Apartment Owners Association of California, Inc.; Jasbir Dhillon; Gary Gillman; Anita Haeggstrom, R.M.B. Advance German Car Specialties, Corp.; the parties defendant were Arakelian Enterprises, Inc., Consolidated Disposal Service, L.L.C.; Calmet Services, Inc.; Universal Waste Systems, Inc.; USA Waste of California, Inc. The defendants, including UWS, filed motions to challenge the validity of the cases. The Court ordered dismissal on June 15, 2020. While the City of Los Angeles was not a party to the foregoing case, that case was related to two cases in which the City is a party, numbered as “Lead Case No. BC677423” (status: pending) and “Case No. BC709658” (status: consolidated, non-lead case). Universal believes that it’s interest, and those of the other haulers, were generally aligned with the City of Los Angeles, and not at odds. CEQA Cases Re Proposed Transfer Station in Pomona (Settled in 2012) The following three cases involved a challenge by the Coalition for Environmental Justice in Pomona (“CEJP”) to the approvals granted and Final Environmental Impact Report certified by the City of Pomona in June 2007 for a proposed transfer station project by Universal Waste Systems, Inc. (“UWS”). The parties to the actions are as indicated in the titles of the cases, with the additions of UWS being named as the Real Party in interest ion the 2007 Action, and CEPJ being an intervener in the 2010 Action and, it is believed, having filed a brief in the Appeal. All of these cases were dismissed and abandoned with prejudice pursuant to a Settlement Agreement and Releases, dated March 19, 2012. The settlement was, in part, entered into in connection with a sale by UWS and its affiliates of their rights in the project and certain other assets to a third party. Coalition for Environmental Justice in Pomona v. City of Pomona, City Council of Pomona, Los Angeles Superior Court Case No. BS 110029, filed on July 19, 2007 (the “2007 Action”); Universal Waste Systems, Inc. v. City of Pomona and City Council of Pomona, Los Angeles Superior Court Case No. BS 128165, filed on September 3, 2010 (the “2010 Action”); and Universal Waste Systems, Inc. v. City of Pomona and City Council of Pomona, Los Angeles Superior Court Case No. B 234518, filed on July 23, 2011 (the “Appeal”). Proposal for Integrated Waste Management Services City of Los Alamitos 65 SECTION 13 – CUSTOMER SERVICE UWS roots are in the highly competitive nonexclusive franchise environment where customers are free to change providers if service quality is not maintained. Quality customer service always has been and continues to be of utmost importance to the Blackburn Family. Here the power of the personal guarantee, a UWS Core Value, is exemplified by the hands-on involvement of the key management team members to ensure that every single Customer complaint or simple inquiry is resolved to the complete satisfaction of the Customer. Our Customer Care Model Customer-Initiated Contacts At UWS, Customer service is a team effort. The ‘Customer service team’ consists of our Customer Care Representatives, our Dispatchers, our Route Supervisors, and our Route Drivers. UWS Customer Care Team Our Customer Care Representatives receive Customer calls, message chats, and emails. They are well versed in policies and procedures and able to answer questions. If a Customer contact involves a service issue, a Service Order is generated through the Customer Record Management (CRM) system. A central figure of the Customer care team is our Dispatch Office. Dispatch assigns service orders to the appropriate route, monitors the status of open orders, and closes them out when completed. Route Drivers receive service orders on their on-board screen, perform the work, and log the Service Order action taken. Customer Care Rep. Route Driver Route Supervisor Dispatch Proposal for Integrated Waste Management Services City of Los Alamitos 66 Route Supervisors are our quality control inspectors. They follow-up to see that service orders are fulfilled in a timely and quality manner. If warranted by the nature of the contact, the Route Supervisor will make in-person contact with the Customer to ensure satisfaction. Driver-Initiated Reports Our Customer care model works in reverse as well. Drivers report to Dispatch when there is an issue with service such as an inaccessible bin and then either the Dispatcher or the Customer Care Representative will initiate contact with the Customer. Documentation Whether the Customer or our Driver initiates the contact, notes are added to the account so that any Customer Care Representative accessing the account in the future has full access to the account history. Fulfillment Policy Our goal is to complete all service orders the same day that are received by 1:00 P.M. If a Customer Care Representative cannot complete a Customer request during the call, the caller will be advised that they can expect follow-up either before the end of that day or no later than the next business day. Jurisdiction Specific Information Customer Care Representatives receive continuing education regarding the service, programs and policies of the jurisdictions that we serve. Weekly briefings keep our representatives abreast of events and changes upcoming in jurisdictions. In addition to the jurisdiction-specific information that appears on the Customer record, each Customer Care Representative has at hand a database of common services, rates & policies, and even the franchise agreement/contract, for each jurisdiction. These procedures will ensure that the calling customer receives timely and accurate information from our Customer Care Representative, ideally in one call. Customer Care Center Staffing We operate a stand-alone Customer care center in our Orange and Los Angeles Counties offices staffed by over twenty-five (25) representatives. The center operates Monday through Friday from 7:00 A.M. to 5:00 P.M. and 8:00 A.M. to 12:00 P.M. on Saturday. Peak staffing is provided Monday through Friday between the hours of 8:00 A.M. and 4:00 P.M. Hiring & Training Hiring We select Customer Care Representatives based on their positive attitude and their desire to help others. One-Stop-Shop Our goal is for our Customer Care Center to be a ‘One-Stop-Shop’. Besides addressing service questions and issues, our Customer Care Representatives are trained to handle credits, adjustments, billing disputes, opening and closing of accounts, service level changes, management or ownership changes, processing Proposal for Integrated Waste Management Services City of Los Alamitos 67 payments and enrolling the Customer in auto pay. They can also walk the Customer through the pay online feature if assistance is needed. Complaint Resolution Protocol Customer Care Representatives are trained to follow our Customer Service Protocol:  The Customer Is Always Right  Every Customer inquiry or complaint is deemed urgent and legitimate until proven otherwise  Company resources should immediately be redirected to achieve an expedient resolution of the matter  Some matters need to be moved to a more senior member if needed to expedite resolution  Relentless follow-up is expected to ensure resolution is achieved within 24 hours  Post resolution Customer feedback is crucial to constantly improving service quality Customer Record Management System We utilize the AMCS Tower Customer service software system for Customer record management. Telephone System We utilize the NEC9300 telephone communications platform. The telephone system gives our Customer Care Team the ability to see the hold queue and respond access the next up call. If all The system is scalable and adaptable to the changes and growth of our business. System Metrics We are able to monitor call metrics system-wide and for individual jurisdictions. Telephony Metrics table below is a real example of telephony metrics from our system. Telephony Metrics Metric Value Unit Monthly average percent of calls answered within 60 seconds 99 % Abandoned calls 1 % Abandoned call rate, peak hours 1 % Abandoned call rate, off-peak hours 0 % Average amount of time it takes call center staff to complete a customer support call/session, including documentation (inbound) 3:14 Minutes Average amount of time it takes call center staff to complete a customer support call/session, including documentation (outbound) 1:28 Minutes Number of calls (inbound) 2,199 Number Number of calls (outbound) 1,567 Number Average call wait time 34 Seconds Proposal for Integrated Waste Management Services City of Los Alamitos 68 Average amount of time to respond to Customer inquiry via the web, email, mobile app, etc. 7 Minutes Average amount of time callers spend in agent-induced hold 3:48 Minutes Percent of logged-in time spent in a ‘work’ state (for calls, a work state is generally talk and after call work time) 8.4 % Total number of contacts received for processing per day 2,219 Number Proposal for Integrated Waste Management Services City of Los Alamitos 69 SECTION 14 – RATES AND COSTS All of the rates and costs for the proposal are included in a sealed envelope as required in the Request for Proposal document. UWS has proposed one (1) pricing option, utilizing the County of Orange landfill system for residual waste. Proposal for Integrated Waste Management Services City of Los Alamitos 70 SECTION 15 – OPERATION EMPLOYMENT OF PRIOR CONTRACTOR EMPLOYEES We recognize that the employees of the current contractor possess unique knowledge of the City and the customers therefore we believe they would be beneficial to join our team. We will offer employment opportunities for available positions to existing employees of the current contractor that would otherwise be displaced. (a) Non-Discrimination Policy Our owners, management and employees treat each other equally and fairly and will not engage in discrimination against anyone because of their actual or perceived race, color, religion, ancestry, national origin, disability, medical condition, marital status, domestic partner status, sex, gender, gender identity, gender expression, or sexual orientation or as a member of any other protected class. (b) Procedures Offer of Employment Following the award of the Franchise Agreement to UWS, we will post an opportunity to employ individuals currently employed by existing service provider and deployed to service the City of Los Alamitos. Any offer of employment will be subject to the potential employee meeting the company’s pre- employment and screening requirements. One-On-One Visit Prospective employees are also invited to meet individually by appointment with a representative of our Human Resources Department. New Employee Orientation We will host a mandatory New Employee Orientation for each qualified individual that joins our team. The Orientation will be held approximately 15-30 days before we commence service. Employees will be compensated for attending the orientation. Training In the week leading up to our commencing service, we will conduct mandatory off-hour training sessions to familiarize transitioning employees with our procedures and technologies. Transitioning employees will be compensated for attending training sessions. (c) Limitations The following are the only conditions to employment that will apply. Available Positions Employees of the prior contractor will be given hiring priority to fill available positions for City of Los Alamitos. If sufficient positions are not available, we reserve the right to assign employees to a different position or to another jurisdiction. If assigned to another jurisdiction, every attempt will be made for the assignment to be within the same general area. Proposal for Integrated Waste Management Services City of Los Alamitos 71 Full-time Employees To be considered for employment by us as a displaced worker, individuals must have been employed by the current contractor and assigned full-time to the City of Los Alamitos for a minimum of ninety (90) consecutive days. Criminal Background & Driving Record Check Offers of employment are conditioned upon our conducting a pre-employment background screening investigation, which includes criminal and driving record history. Prospective employees must also prove insurable by our provider. Post Offer Physical Exam Each prospective employee must pass a pre-employment physical examination, at our cost, to determine fitness to perform the assigned work. Drug Screening For the safety of our employees and the public, it is important that we maintain a drug-free work environment. Each prospective employee must pass a drug-screening test prior to employment. All safety- sensitive positions are also subject to random drug screening while employed. Drivers of our equipment are subject to post-accident drug testing in accordance with Department of Transportation guidelines. Continued Employment With good job performance, a job with UWS can become a career. Continued employment is conditioned upon adherence to UWS policies and satisfactory job performance. Seniority When employed by UWS, employees will retain their years of service seniority as their original date of employment by the previous contractor (subject to verification). Wages & Benefits When employed by UWS, employees will be offered the same wages and benefits as regular UWS employees. Proposal for Integrated Waste Management Services City of Los Alamitos 72 SECTION 16 – EXCEPTIONS UWS takes no exceptions to the RFP or the proposed Franchise Agreement. Proposal for Integrated Waste Management Services City of Los Alamitos 73 SECTION 17 – SB1383 COMPLIANCE Background AB 341 (Mandatory Commercial Recycling) – Requires commercial establishments (i.e., businesses including public entities that generate 4 cubic yards or more of solid waste per week, and multi-family complexes of 5 or more dwelling units) to arrange for recycling services (i.e., recycling of containers and fiber products). AB 827 (Recycling Containers) – Requires that businesses subject to AB 341 and AB 1826 and that are frequented by the public must provide recycling containers for public use. AB 1826 (Mandatory Commercial Organic Waste Recycling) – Requires businesses that generate 4 cubic yards or more of commercial solid waste per week to arrange for organic waste recycling services. SB 1383 (Organic Waste Methane Emissions Reduction – Requires a 75% reduction in the 2014 disposal of organic waste including a 20% recovery edible food waste for human consumption. Three key dates established by SB 1383 will occur during the term of the Franchise Agreement: January 1, 2022. CalRecycle’s regulations to meet the organic waste reduction and the edible food recovery targets take effect. Also, on this date, the enforcement provisions, including penalties for noncompliance issued by the State, take effect. January 1, 2024. CalRecycle’s regulations may require local jurisdictions to impose penalties for noncompliance on regulated entities subject to their authority. January 1, 2025. The State (and presumably each jurisdiction) must achieve 75% reduction in the disposal of organic waste (from 2104 levels); and, not less than 20% of currently disposed edible food must be recovered for human consumption. Experience RecycleLA, the City of Los Angeles’ Zero Waste program, was designed before SB 1383 was adopted and yet the program anticipated what would become the State recycling and organic waste recycling mandate. As a Contractor for RecyLA servicing the North East zone, we have been able to perfect our diversion implementation plan, recruit and train our team, and hone our customer education and outreach skills. Our Zero Waste team has extensive experience in assessing our customer needs, personalizing programs and getting results. This implementation plan is a product of that experience. Staffing Our Zero Waste Team is made up of fourteen Zero Waste Account Representatives with public relations skills and special training and expertise to personally assist Customers with tailoring solid waste services that maximize the recovery of recyclable material and organics. Proposal for Integrated Waste Management Services City of Los Alamitos 74 Some of the UWS Zero Waste Team. Hear our Zero Waste Account Representatives speak RecycLA: https://youtu.be/vgfa-g1j870 Identification & Outreach The first step in compliance begins with identifying the customer and assessing their waste and recycling needs. We accomplish this by following the steps listed below. Introductory Mailing Forty-five days before the start of service, we will introduce the Recyclable and Organic Waste Recycling Program to Commercial and Multi-family Customers with a direct mailing to each Customer. Initial Visit Ten days following the introductory mailing, members of our Zero Waste Team will begin making personal visits with each account to introduce UWS services, confirm account information, perform a waste assessment, and create a service order with new service recommendations. The initial visit is a very important part of our outreach and education process. Proposal for Integrated Waste Management Services City of Los Alamitos 75 Outreach & Education In the initial visit, Zero Waste Account Representatives will provide Customers with literature introducing UWS and explaining Recycling, Organic Recycling, and Food Donation opportunities. Confirm Account Information Zero Waste account Representatives will verify the service and billing address, contact information, and service levels. Waste Assessment In the waste assessment portion of the initial visit, Zero Waste Account Representatives will make determinations about container location, container fullness on service days, use of recycling containers, willingness to donate edible food (if applicable), and issues that might impede collections. Another objective of the initial visit will be to explain ways that the Customer can reduce costs while complying with diversion mandates. During the initial visit, our Zero Waste Account Representatives will also make a determination regarding the Customer’s compliance with AB 341, AB 1826 and AB 827. When compiled, these individual determinations will become the City’s database for compliance monitoring, enforcement, and reporting to CalRecycle. When a Customer performs Recyclable or Organic Waste Recycling by self-hauling or through another authorized provider (e.g., yard waste removal by a landscape maintenance contractor), this information will be recorded. Technology Each member of our Zero Waste Account Team uses a Zero Waste Compliance Tool tablet application that guides the account representative through the initial visit process. It will also be used for follow-ups, monitoring, and enforcement procedures. The app allows the representative to attach photographs to the Customer record. Sample screenshots of the app are provided. Proposal for Integrated Waste Management Services City of Los Alamitos 76 Zero Waste Compliance Tool tablet sample screenshots. Monitoring Compliance monitoring will be an ongoing procedure conducted by our Zero Waste Team. The monitoring process will consist of two elements: (1) Enrollment monitoring; and, (2) Contamination monitoring. Enrollment Monitoring Accounts that do not enroll in the appropriate diversion services will be identified in monthly exception reports generated for Zero Waste Team members to revisit the account and attempt to arrange services. A listing of accounts that fail to enroll in required diversion services will that will be provided to the City monthly for enforcement action. Participation Monitoring Accounts that are enrolled in recyclable and Organic Waste recycling services will be inspected on a periodic basis to confirm their participation and inspect for container contamination in a procedure referred to a lid flipping. Customers not utilizing BLUE, GREEN or BROWN containers as intended will be personally contacted by a Zero Waste Account Representative as an outreach and education measure. Customers who do not make themselves available or who refuse to comply will be documented and the information will be shared with the City. If contamination of BLUE, GREEN or BROWN containers is found to be an issue, the Zero Waste Account Representative will arrange a training session with the Customer to rectify the issues. Ongoing contamination issues will incur extra charges and potential removal of containers resulting in the Customer being reported to the City as not being in compliance. All monitoring inspections and their outcomes are recorded in the Zero Waste Compliance Tool. Proposal for Integrated Waste Management Services City of Los Alamitos 77 Zero Waste Account Representatives documenting BLUE bin contents. Reporting. Within 30-days following the start of service and monthly thereafter, UWS will transmit a report to the City identifying the following:  AB 341 o Total number of covered businesses o Total number of exempt businesses o Listing of exempt businesses o Total number of covered businesses recycling o Total number of covered businesses not recycling o Listing of each business not recycling o Total number of covered multi-family complexes o Total number of exempt multi-family complexes o Listing of exempt multi-family complexes o Total number of covered multi-family complexes recycling o Total number of covered multi-family complexes not recycling Proposal for Integrated Waste Management Services City of Los Alamitos 78 o Listing of each multi-family complex not recycling  AB 1826 o Total number of covered businesses o Total number of exempt businesses o Listing of exempt businesses o Total number of covered businesses recycling organic waste o Total number of covered businesses not recycling organic waste o Listing of each business not recycling organic waste o Total number of covered multi-family complexes o Total number of exempt multi-family complexes o Listing of exempt multi-family complexes o Total number of covered multi-family complexes recycling organic waste o Total number of covered multi-family complexes not recycling organic waste o Listing of each multi-family complex not recycling organic waste  AB 827 o Total number of businesses o Total number of exempt businesses o Total number of businesses in compliance o Total number of businesses not in compliance o Listing of each business not in compliance Enforcement UWS will support City’s enforcement efforts and assist with follow-up outreach and education efforts as necessary. ### Proposal for Integrated Waste Management Services City of Los Alamitos 79 ORGANIC WASTE RECOVERY PROGRAM Our preferred collection system is a hybrid, Two-Container AND Three-Container Collection System: Three-Container Collection System (SB1383 Compliant) Subscribers The three-container collection system will be used for collections from:  Residential premises,  Multi-Family dwellings that do not have bin collection, and  Commercial premises that are NOT food preparation or eating establishments. Containers (Note: All references to a container of a particular color means the color of lid.) In the Three-Container Collection System, waste generators will be provided three collection containers: 1. A GREY container for disposed refuse; 2. A BLUE container for diversion of commingled recyclables including paper products; and, 3. A GREEN container for diversion of yard waste and organics including food scraps. In the Three-Container Collection System, ‘containers’ will be industry-standard Carts, Bins, Roll-Off Boxes, or Stationary Compactors appropriate for the subscriber (Container specifications are described in greater detail elsewhere in this Proposal.):  Waste generators receiving collections from Carts will generally be: o Residential premises subscribing to individual collection, o Multi-Family dwellings, generally with fewer than five dwellings and subscribing to individual collection, and o Commercial premises generating low volumes or that are unable to subscribe to bin service due to a lack of bin enclosure space.  Waste generators receiving collections from Bins will generally be: o Multi-Family complexes generally with five or more dwellings, and o Commercial premises that are NOT food preparation or eating establishments.  Waste generators receiving collections from Roll-Off Boxes and Stationary Compactors will generally be Commercial establishments generating large volumes of Solid Waste destined for disposal, source-separated Recyclables, including paper products, and/or source-separated Yard Waste. Proposal for Integrated Waste Management Services City of Los Alamitos 80 Comprehensive List of Organic Waste Three-Container Organic Waste Recycling ACCEPTED MATERIAL PROHIBITED MATERIAL GREY Container General Solid Waste not containing recyclable or organic waste All recyclable materials and organic waste BLUE Container All paper products, cardboard, hard recyclables including glass, tin cans, aluminum cans, plastics 1-7, film plastic etc. All refuse and organic waste GREEN Container Yard waste including trimmings & grass clippings, food and food scraps and other organic wastes All recyclable materials Customer In-House Preparation of Organic Waste Customers disposing of Organic Waste in the Three-Container Collection System will be required to adhere to the following in-house preparations:  GREY container: o General solid waste that is not accepted in the blue or green containers.  BLUE container: o Source-separated Commingled Recyclables including paper products, cardboard, glass, aluminum and tin cans, plastics 1-7 and other recyclable materials  GREEN container: o Yard and Green Waste must be placed in the container un-bagged and untied. o No special preparations; any Food Waste and Food Scraps are acceptable; Food Waste should not be placed in bags; Proposal for Integrated Waste Management Services City of Los Alamitos 81 Two-Container Collection System (SB1383 Compliant) Subscribers UWS is offering a Two-Container Collection System for the collection from Commercial and Multi-family premises that are not food preparation or eating establishments that generate significant volumes of Food Waste. This system will rely on the Organic Processing system that is described in Section 3 – Facility Description. As mentioned in the facility section, we will utilize the OREX-500 to press the organic fraction from the mixed solid waste stream and ship it to the Anaergia AD facility located in Rialto where it will be made into Renewable Natural Gas (RNG) and high quality soil amendment. This proposed system will allow businesses and multi-family complexes with limited space for containers to have a compliant system that only requires two containers. Containers In the Two-Container Collection System, waste generators will be provided two collection containers: 1. A GREY container for disposed Refuse, Food Waste and Scraps; 2. A BLUE container for source-separated commingled Recyclable Materials As previously stated, ‘containers’ will be industry-standard Carts, Bins, Roll-Off Boxes, or Stationary Compactors as appropriate for the subscriber. Comprehensive List of Organic Waste The chart on the following page identifies the Organic Waste ‘Accepted’ and ‘NOT Accepted’ in the Two- Container Collection System. Proposal for Integrated Waste Management Services City of Los Alamitos 82 Two-Container Organic Waste Recycling ACCEPTED MATERIAL PROHIBITED MATERIAL GREY Container General refuse including all food waste and food scraps as well as other organic materials All recyclable materials BLUE Container All paper products, cardboard, hard recyclables including glass, tin cans, aluminum cans, plastics 1-7, film plastic etc. All refuse and organic waste Source Separated Collection of Organic Waste (SB1383 Compliant) UWS is proposing source separated collection of organics (food waste and scraps) from customers that generate amounts sufficient to support separate collection and have adequate space for a separate container. In these cases, UWS will provide various carts and/or bins for the collection of organic material. As noted, this material would be collection and shipped to our Organic Processing facility for extraction of material to be shipped to the Anaergia AD facility. Proposed Container Sizes 32 gallon automated organic cart 64 gallon automated organic cart 2 yard front loader organic bin All carts and containers are available to be collected on multiple days per week. Proposal for Integrated Waste Management Services City of Los Alamitos 83 RECYCLABLES AND ORGANIC MATERIALS ACCEPTED MATERIAL PROHIBITED MATERIAL Plastic Recycling Milk jugs Water & soda containers Shampoo, soap, detergent bottles Metal Recycling Aluminum beverage cans Food cans Aerosol cans, completely empty Glass Recycling Beverage containers Food jars Paper Product Recycling Printing & writing paper Newspaper Egg cartons Envelopes Junk mail Phone books Brochures Magazines Ream wrapping paper Cardboard Recycling Cardboard boxes (flattened) Cereal boxes Frozen food boxes Poster board File folders Paper towel roll core tubes Shoe boxes Toilet paper roll core tubes Wood Recycling Clean lumber Appliances Batteries Bubble wrap Christmas lights Coat hangers Diapers Electrical cords Facial tissue Food stained pizza boxes Food waste Food wrap Garden hoses Napkins Padded envelopes Paper towel Pet waste Plastic bags Polystyrene Receipts Rubber balls Sports equipment Sticker-backed paper Stuffed animals Syringes/razor blades Tires Toys Waxed cartons Yard waste Proposal for Integrated Waste Management Services City of Los Alamitos 84 ACCEPTED MATERIAL PROHIBITED MATERIAL Green Waste/Landscaping Grass clippings Leaves Branches/twigs Clean lumber (untreated, unpainted, in small pieces only) Food Discards All vegetables All fruit Egg shells Coffee grounds (paper filters ok) Tea Bags (paper only) Meat, bones All bread products All grains Food soiled napkins, paper towels Painted or composite Wood Palm Fronds All food containers Plastic packaging Polystyrene All Bioplastics (cutlery, cups, bags) Grease Pet waste Human waste Feminine Products Waxed cardboard Plastic lined paperboard containers Proposal for Integrated Waste Management Services City of Los Alamitos 85 FOOD RESCUE AND DONATION PROGRAM Identification and Outreach Introductory Mailing Our introductory mailing to all Commercial Customers about the transition to UWS services will include information about food recovery and the requirements for covered Commercial Customers. Initial Visit When our Zero Waste Account Representatives conduct their initial site visits to arrange service with UWS, they will categorize customers that generate food waste as ‘Covered’ or ‘Not Covered’ by the Regulations. Covered establishments will be further categorized as ‘Tier One’ or ‘Tier Two’ food establishments.  Tier One Commercial Edible Food Generators (supermarkets, grocery stores > 10,000 sq. ft., food service providers, food distributors, wholesale food vendors); and,  Tier Two Commercial Edible Food Generators (restaurants > 250 seats or > 5,000 sq. ft., Hotels with an on-site food facility and > 200 rooms, health facilities with an on-site food facility and > 100 beds, large venues, large events, state agencies > 250 seats or > 5,000 sq. ft., local education agencies with an on-site food facility. During the initial visit, covered Tier One Customers will be provided a handout explaining food recovery requirements and opportunities. Follow-Up Visits During the calendar quarter January through March 2022 and annually thereafter, our Zero Waste Account representatives will perform follow-up visits with Covered Tier One Edible Food Generators (to again disseminate a food recovery brochure and assist establishments not yet connected with food recovery outlets with making those connections. Beginning with the calendar quarter January through March 2023 and annually thereafter, Covered Tier Two Edible Food Generators will be added to the follow-up visits. Ongoing Outreach Commencing January 1, 2022, and annually thereafter, we will provide Tier One Commercial Edible Food Generators with:  Information about the Edible Food Recovery Program;  Information about requirements of generators under 14 CCR Chapter 12 article 10;  Information about Food Recovery organizations and services; and,  Information about actions that generators can take to prevent Food waste. Commencing January 1, 2024, the above distribution will be expanded to include Tier Two Commercial Edible Food Generators This information will be distributed as billing inserts or with other regularly disseminated information. Proposal for Integrated Waste Management Services City of Los Alamitos 86 Food Recovery Network As a result of our work in other jurisdictions, we have on-going working relationships with a network of food rescue and recovery organizations who are expert in the laws, logistics, and recipient matching necessary for successful programs. Compliance Reviews & Reporting By January 1, 2023, and annually thereafter, our Zero Waste Account Representatives will conduct compliance reviews of each covered Tier One Commercial Edible Food Generator. Our annual report to the City of the annual compliance reviews will include:  Total number of covered establishments, by type;  Total number of covered establishments in compliance, by type;  Total number of covered establishments not in compliance, by type;  Listing of covered establishments not in compliance, by type; and,  Barriers to compliance as reported by covered establishments. Commencing January 1, 2024, and annually thereafter, we will complete a report to the City the compliance status of Tier Two Commercial Edible Food Generators as follows:  Total number of covered establishments, by type;  Total number of covered establishments in compliance, by type;  Total number of covered establishments not in compliance, by type;  Listing of covered establishments not in compliance, by type; and,  Barriers to compliance as reported by covered establishments. Enforcement We will support the City of Los Alamitos with enforcement of its Food Recovery regulations by conducting investigations of individual edible food generator’s compliance upon written direction by the County. Such investigations will be completed within ninety (90) days of receipt of the complaint or request. Proposal for Integrated Waste Management Services City of Los Alamitos 87 PROCUREMENT OF RECOVERED ORGANIC WASTE PRODUCTS SB 1383 Requirement Article 12 of the proposed Short-Lived Climate Pollutants regulations requires a jurisdiction to procure organic waste products directly, or through a service provider (Contractor), at or above the target established by CalRecycle. Procurement Target The CalRecycle-proposed procurement target is 0.08 tons (160 pounds) per resident per year, adjusted annually based upon the California Department of Finance published population estimate for the cities or counties, and is recalculated annually. [18993.1] Programs Compost Giveaway Program In accordance with Agreement, we will deliver one 40-cubic yard Roll-Off load of finished compost to a site specified by the county for residents to fill their own containers on a first -come, first-served basis at no additional cost. City Facilities Program We will deliver, at no cost to City or customers, bulk recovered organic waste product of the type and volume to any county Facility(ies) directed by City for its own use or for giveaway. The City shall be responsible for the cost of storing, distributing, and applying the recovered organic waste product. Assumptions Density Conversion One ton of bulk compost or bulk mulch equals 1.45 cubic yards [18993.1]. Product Application Finished compost is typically used as an amendment tilled into the soil for enhancing soil structure, preventing soil compaction, and building organic matter, and applied 2 to 3 inches and worked into the soil at a depth of about 6 inches. (An application of 3 inches of bulk compost per acre equals approximately 403.3 cubic yards.) Mulch is typically used as a soil covering to control weeds and retain moisture in non-turf areas and applied over bare spoil at a depth of 3 to 4 inches. (An application of 4 inches of bulk mulch per acre equals approximately 532.4 cubic yards.) Proposal for Integrated Waste Management Services City of Los Alamitos 88 Record Keeping We will maintain a record of recovered organic products provided to the City through the above described programs, including the delivery dates, delivery locations, number of loads, cubic yards, and tons of recovered organic product. ### Proposal for Integrated Waste Management Services City of Los Alamitos 89 SECTION 18 - PROPOSAL ENHANCEMENTS Youth Scholarships Program: UWS proposes to provide scholarships in the amount of $10,000.00 per year to City of Los Alamitos seniors for college that live in the zones awarded to UWS. Community Non Profit/ Youth Organizations Donation: UWS will include $10,000.00 per year in donations to local nonprofits and youth organizations in the City of Los Alamitos to be used at the City Council Discretion. Free Portable Restrooms: UWS will provide FREE portable restrooms and hand sinks for all City of Los Alamitos sponsored events within our service area. Free Compost and Mulch: UWS will provide FREE compost and mulch for all City parks, medians, and City funded projects in the City of Los Alamitos. Proposed Residential Rates PRICING ITEM Proposed Monthly Rate Curbside Grey-Blue-Green - 35 gallon cart (Senior)12.18$ Curbside Grey-Blue-Green - 65 gallon cart (Senior)12.56$ Curbside Grey-Blue-Green - 65 gallon cart 12.95$ Curbside Grey-Blue-Green - 95 gallon cart 12.95$ Curbside Two-Cart Grey-Green - 65 gallon cart 16.45$ Curbside Two-Cart Grey-Green - 95 gallon cart 16.95$ Extra Grey Cart (Trash) - 65 or 95 gallon 7.00$ Extra Blue Cart (Recycling) - 65 or 95 gallon 5.50$ Extra Green Cart (Organics) - 65 or 95 gallon 7.00$ # of Free Bulky Item Collections Per Year 4 # of Bulky Items Allowed for Each Free Collection 4 Bulky Items - Additional Collections 45.00$ # of Bulky Items Allowed for Each Such Collection 4 HHW Collections - # Per-Year (Please list of limitations separately)4 HHW Collection Charge Per Unit Receiving Service 0.95$ Cart Contamination Charge (after 1 warning tickets)N/C Cart Contamination Charge (after 2 warning tickets)$15.00 Cart Contamination Charge (after 3 warning tickets)$30.00 Residential Clean-Up Bin (3 cubic-yards)95.00$ Clean-Up Bin Per-Exchange 95.00$ Residential Clean-Up Box (20 to 40 cubic-yards)$550.00 Res Clean-Up Box (20 to 40 cubic-yards) Over 5 tons @ $65/ton Additional Residential Charge Item* Residential rates are applicable to all single and multi-family properties of 4 units or less that subscribe to cart service.. CITY OF LOS ALAMITOS RFP PRICING MATRIX RATES EFFECTIVE JANUARY 1, 2022 RATES ARE ALL INCLUSIVE (SUBSTITUTE SIZE IF APPLICABLE) * Please list and describe any additional residential charge item you wish to have included and the per-unit/service cost for each. You may add as many as you believe are necessary. Please highlight and clearly mark any service that is an alternate to pricing items above. Proposed Commercial Rates Three Container System PRICING ITEM New Rate/Month 3-YARD GREY BIN (Trash) 1X PER WEEK 135.00$ 3-YARD GREY BIN 2X PER WEEK 247.92$ 3-YARD GREY BIN 3X PER WEEK 338.82$ 3-YARD GREY BIN 4X PER WEEK 424.15$ 3-YARD GREY BIN 5X PER WEEK 509.93$ 3-YARD GREY BIN 6X PER WEEK 594.89$ 3-YARD BLUE BIN (Recycle) 1X PER WEEK 77.89$ 3-YARD BLUE BIN 2X PER WEEK 121.20$ 3-YARD BLUE BIN 3X PER WEEK 165.65$ 3-YARD BLUE BIN 4X PER WEEK 207.37$ 3-YARD BLUE BIN 5X PER WEEK 249.30$ 3-YARD BLUE BIN 6X PER WEEK 290.87$ 35-GALLON GREEN CART (Organics) 1X PER WEEK 48.16$ 35-GALLON GREEN CART 2X PER WEEK 96.33$ 65-GALLON GREEN CART 1X PER WEEK 49.65$ 65-GALLON GREEN CART 2X PER WEEK 99.31$ 65-GALLON GREEN CART 3X PER WEEK 148.96$ 65-GALLON GREEN CART 4X PER WEEK 198.61$ 65-GALLON GREEN CART 5X PER WEEK 248.27$ 65-GALLON GREEN CART 6X PER WEEK 297.92$ 2-YARD GREEN BIN (Organics) 1X PER WEEK 49.65$ 2-YARD GREEN BIN 2X PER WEEK 99.31$ 2-YARD GREEN BIN 3X PER WEEK 148.96$ 2-YARD GREEN BIN 4X PER WEEK 198.61$ 2-YARD GREEN BIN 5X PER WEEK 248.27$ 2-YARD GREEN BIN 6X PER WEEK 297.92$ CITY OF LOS ALAMITOS RFP PRICING MATRIX RATES EFFECTIVE JANUARY 1, 2022 RATES ARE ALL INCLUSIVE Two Container System PRICING ITEM New Rate/Month 3-YARD GREY BIN (Trash & Recycle Mix) 1X PER WEEK 162.00$ 3-YARD GREY BIN 2X PER WEEK 297.50$ 3-YARD GREY BIN 3X PER WEEK 406.58$ 3-YARD GREY BIN 4X PER WEEK 508.98$ 3-YARD GREY BIN 5X PER WEEK 611.92$ 3-YARD GREY BIN 6X PER WEEK 713.87$ 35-GALLON GREEN CART (Organics) 1X PER WEEK 48.16$ 35-GALLON GREEN CART 2X PER WEEK 96.33$ 65-GALLON GREEN CART 1X PER WEEK 49.65$ 65-GALLON GREEN CART 2X PER WEEK 99.31$ 65-GALLON GREEN CART 3X PER WEEK 148.96$ 65-GALLON GREEN CART 4X PER WEEK 198.61$ 65-GALLON GREEN CART 5X PER WEEK 248.27$ 65-GALLON GREEN CART 6X PER WEEK 297.92$ 2-YARD GREEN BIN (Organics) 1X PER WEEK 226.94$ 2-YARD GREEN BIN 2X PER WEEK 453.88$ 2-YARD GREEN BIN 3X PER WEEK 680.82$ 2-YARD GREEN BIN 4X PER WEEK 907.75$ 2-YARD GREEN BIN 5X PER WEEK 1,134.69$ 2-YARD GREEN BIN 6X PER WEEK 1,361.63$ Commercial Rates - Other Services & Items PRICING ITEM New Rate/Month 3-YARD GREEN WASTE ONLY BIN 1X PER WEEK 159.31$ 3-YARD GREEN WASTE ONLY BIN 2X PER WEEK 247.92$ 3-YARD GREEN WASTE ONLY BIN 3X PER WEEK 338.82$ 3-YARD GREEN WASTE ONLY BIN 4X PER WEEK 424.15$ 3-YARD GREEN WASTE ONLY BIN 5X PER WEEK 509.93$ 3-YARD GREEN WASTE ONLY BIN 6X PER WEEK 594.89$ Additional Commercial Charge Item* Additional Commercial Charge Item* Commercial rates are applicable to all business and multi-family properties of 5 units or more, and smaller multi-family properties that subscribe to bin service. * Please list and describe any additional commercial charge item you wish to have included and the per- unit/service cost for each. You may add as many as you believe are necessary. Please highlight and clearly mark any service that is an alternate to pricing items above. Proposed Industrial Rates Recurring Services PRICING ITEM New Rate/Month SMALL COMPACTOR (Trash - 20 cubic-yards or less) PER PICK-UP 537.50$ MAXIMUM WEIGHT IN TONS 5 PER-TON CHARGE FOR OVERAGE 55.00$ LARGE COMPACTOR (Trash - 21 cubic-yards or more) PER PICK-UP 647.50$ MAXIMUM WEIGHT IN TONS 7 PER-TON CHARGE FOR OVERAGE 55.00$ GREY ROLL-OFF CONTAINER (20 to 40 cubic yards) PER PICK-UP 537.50$ MAXIMUM WEIGHT IN TONS 5 PER-TON CHARGE FOR OVERAGE 55.00$ BLUE ROLL-OFF CONTAINER (20 to 40 cubic yards) PER PICK-UP 387.50$ GREEN ROLL-OFF CONTAINER (20 to 40 cubic yards) PER PICK-UP 587.50$ GREEN WASTE ONLY ROLL-OFF CONTAINER PER PICK-UP 587.50$ Temporary Services PRICING ITEM New Rate/Month GREY ROLL-OFF CONTAINER (20 to 40 cubic yards) PER PICK-UP * Includes trash with C&D Debris 587.50$ MAXIMUM WEIGHT IN TONS 5 PER-TON CHARGE FOR OVERAGE 65.00$ BLUE HIGH-SIDE ROLL-OFF CONTAINER (to 40 cubic yards) PER PICK-UP * Clean mixed debris only.587.50$ MAXIMUM WEIGHT IN TONS 5 PER-TON CHARGE FOR OVERAGE 65.00$ BLUE LOW-BOY ROLL-OFF CONTAINER (10 cubic yards) PER PICK-UP * Clean mixed debris only 782.50$ MAXIMUM WEIGHT IN TONS 8 PER-TON CHARGE FOR OVERAGE 65.00$ BLUE HIGH-SIDE ROLL-OFF CONTAINER (to 40 cubic yards) PER PICK-UP * One material type only.587.50$ MAXIMUM WEIGHT IN TONS 5 PER-TON CHARGE FOR OVERAGE 65.00$ BLUE LOW-BOY ROLL-OFF CONTAINER (10 cubic yards) PER PICK-UP * One material type only 782.50$ MAXIMUM WEIGHT IN TONS 8 CITY OF LOS ALAMITOS RFP PRICING MATRIX RATES EFFECTIVE JANUARY 1, 2022 Specify tons included in base rate and per-ton charges as applicable PER-TON CHARGE FOR OVERAGE 65.00$ GREEN WASTE ONLY ROLL-OFF CONTAINER PER PICK-UP 587.50$ 3-YARD GREY BIN (Trash & Recycle Mix) 1X PER WEEK 162.00$ 3-YARD GREY BIN 2X PER WEEK 297.50$ 3-YARD GREY BIN 3X PER WEEK 406.58$ 3-YARD GREY BIN 4X PER WEEK 508.98$ 3-YARD GREY BIN 5X PER WEEK 611.92$ 3-YARD GREY BIN 6X PER WEEK 713.87$ 3-YARD BLUE BIN (Mixed Debris or Single Material) 1X PER WEEK 77.89$ 3-YARD BLUE BIN (Mixed Debris or Single Material) 2X PER WEEK 121.20$ 3-YARD BLUE BIN (Mixed Debris or Single Material) 3X PER WEEK 165.65$ 3-YARD BLUE BIN (Mixed Debris or Single Material) 4X PER WEEK 207.37$ 3-YARD BLUE BIN (Mixed Debris or Single Material) 4X PER WEEK 249.30$ 3-YARD BLUE BIN (Mixed Debris or Single Material) 6X PER WEEK 290.87$ Industrial Rates - Other Services & Items PRICING ITEM New Rate/Month Additional Industrial Charge Item (No MSW in Blue Bin Program Above) Additional Industrial Charge Item* * Please list and describe any additional Industrial charge item you wish to have included and the per- unit/service cost for each. You may add as many as you believe are necessary. Please highlight and clearly mark any service that is an alternate to pricing items above. Industrial rates are applicable too all recurring commercial compactor/ roll-off service and all non- residential temporary service.