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HomeMy WebLinkAbout03/13/12 1 “The function of freedom is to free somebody else.” - Toni Morrison AGENDA HERMOSA BEACH CITY COUNCIL Tuesday, March 13, 2012 - Council Chambers, City Hall 1315 Valley Drive 6:00 p.m. - CLOSED SESSION: See attached Closed Session Agenda 7:00 p.m. - REGULAR MEETING MAYOR Howard Fishman CITY CLERK Elaine Doerfling MAYOR PRO TEM Jeff Duclos CITY TREASURER David Cohn COUNCIL MEMBERS Patrick ‘Kit’ Bobko Michael DiVirgilio Peter Tucker CITY MANAGER Stephen R. Burrell CITY ATTORNEY Michael Jenkins All council meetings are open to the public. PLEASE ATTEND. The Council receives a packet with detailed information and recommendations on nearly every agenda item. City Council agendas and staff reports are available for your review on the City's web site located at www.hermosabch.org. Complete agenda packets are also available for public inspection in the Police Department, Fire Department, Public Library and the Office of the City Clerk. During the meeting, a packet is also available in the Council Chambers foyer. Written materials distributed to the City Council within 72 hours of the City Council meeting are available for public inspection immediately upon distribution in the City Clerk's office at 1315 Valley Drive, Hermosa Beach, California, during normal business hours. All written communications from the public included in the agenda will be posted with the agenda on the City’s website To comply with the Americans with Disabilities Act of 1990, Assistive Listening Devices (ALD) will be available for check out at the meeting. If you require special assistance to participate in this meeting, you must call or submit your request in writing to the Office of the City Clerk at (310) 318-0203 at least 48 hours prior to the meeting. Your participation in this meeting is in the public domain. Meetings are both cablecast and streamed live over the Internet. Minutes of this meeting will reflect your participation in this meeting and are posted on the city’s website 2 CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL CLOSED SESSION REPORT ANNOUNCEMENTS PUBLIC PARTICIPATION: Although the City Council values your comments, the Brown Act generally prohibits the Council from taking action on any matter not listed on the posted agenda as a business item. 1. ORAL AND WRITTEN COMMUNICATIONS This is the time for members of the public to address the City Council on any items within the Council's jurisdiction not on this agenda, on items on this agenda as to which public comment will not be taken, or to request the removal of an item from the consent calendar. Comments on public hearing items are heard only during the public hearing. Members of the audience may also speak: 1) during discussion of items removed from the Consent Calendar; 2) during Public Hearings; and, 3) during discussion of items appearing under Municipal Matters. Comments from the public are limited to three minutes per speaker. The City Council acknowledges receipt of the written communications listed below. No action will be taken on matters raised in written communications. The Council may take action to schedule issues raised in oral and written communications for a future agenda. Citizens with comments regarding City management or departmental operations are requested to submit those comments to the City Manager. NO WRITTEN COMMUNICATIONS 2. CONSENT CALENDAR: The following more routine matters will be acted upon by one vote to approve with the majority consent of the City Council. There will be no separate discussion of these items unless a Council member removes an item from the Consent Calendar. Items removed will be considered under Agenda Item 4, with public comment permitted at that time. 3 (a) Recommendation to approve the following minutes: 1) Minutes of the Adjourned Regular meeting held on February 16, 2012; 2) Minutes of the Special meeting held on February 23, 2012; 3) Minutes of the Adjourned Regular meeting held on February 27, 2012; 4) Minutes of the Special meeting held on February 28, 2012; and, 5) Minutes of the Regular meeting held on February 28, 2012; (b) Recommendation to ratify check register and to approve cancellation of certain checks as recommended by the City Treasurer. (c) Recommendation to receive and file 1) Tentative Future Agenda Items; and, 2) City Council Directives (d) Recommendation to accept donation of $1,602.50 from the Hermosa Beach Historical Society to be used for the Surfers’ Walk of Fame. Memorandum from Finance Director Viki Copeland dated March 5, 2012. (e) Recommendation to receive and file report of Customer Service Surveys/Complaints. Memorandum from City Clerk Elaine Doerfling dated March 6, 2012. (f) Recommendation to adopt resolution establishing a “No Intensification of On-Sale Alcoholic Beverage Establishments” policy. Memorandum from Community Development Director Ken Robertson dated March 6, 2012. (g) Recommendation to authorize a contract to provide professional services to update the General Plan Housing Element with J.H. Douglas & Associates in the amount of $28,193; direct the City Manager to execute said agreement; and authorize an appropriation of $28,193 from the General Plan Maintenance fees restricted balance of the General Fund. Memorandum from Community Development Director Ken Robertson dated March 6, 2012. (h) Recommendation to solicit “Proposals for Integrated Waste Management Services” via a competitive bid process and return with a comparison of proposals and recommendation. Memorandum from Community Development Director Ken Robertson and Public Works Director Frank Senteno dated March 5, 2012. (i) Recommendation to approve agreement which provides that John Jalili will serve as the City’s Interim City Manager while the Council recruits for a new city manager or until the Council otherwise terminates the agreement. Memorandum from City Attorney Michael Jenkins dated March 8, 2012. 4 (j) Recommendation to approve, under Section 10.32.180, the operation of mobile food trucks from 5:00pm to 9:00pm on March 16, 2012 and March 23, 2012 as part of the Church of Christ fundraising event. Memorandum from City Manager Stephen Burrell dated March 8, 2012. (k) Recommendation to receive and file the action minutes of the Emergency Preparedness Advisory Commission meeting of January 23, 2012. (l) Recommendation to adopt resolution providing for a temporary increase in the salary of the City Clerk from April 1, 2012 and continuing until the appointment of a new Deputy City Clerk. Memorandum from City Clerk Elaine Doerfling dated March 8, 2012. 3. CONSENT ORDINANCES NONE 4. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION ∗ Public comments on items removed from the Consent Calendar. 5. PUBLIC HEARINGS - TO COMMENCE AT 7:30 P.M. NONE 6. MUNICIPAL MATTERS a. PILOT PROGRAM FOR LOTS A AND B TRASH ENCLOSURES – UPDATE. Memorandum from Public Works Director Frank Senteno dated March 5, 2012. RECOMMENDATION: Receive and file pilot program status report for Lots A and B trash enclosures; consider the options in the staff report and direct staff accordingly; and/or, select one of the options in the staff report and direct staff to meet with the Downtown Merchants to explore an alternative. 7. MISCELLANEOUS ITEMS AND REPORTS - CITY MANAGER a. HELPING HANDS 2012 – SERVING OUR COMMUNITIES – APRIL 28, 2012 AND KELLER WILLIAMS BEACH CITIES – MAY 10, 2012. Memorandum from City Manager Stephen Burrell dated March 8, 2012. RECOMMENDATION: Approve City participation in both community efforts. 5 8. MISCELLANEOUS ITEMS AND REPORTS - CITY COUNCIL a. APPOINTMENT OF AD HOC SUBCOMMITTEE OF THE CITY COUNCIL TO WORK WITH THE CITY’S PUBLIC INFORMATION FIRM, FIONA HUTTON & ASSOCIATES, TO PROVIDE PUBLIC INFORMATION ON THE MACPHERSON OIL COMPANY SETTLEMENT. Memorandum from City Manager Stephen Burrell dated March 8, 2012. RECOMMENDATION: Consider an ad hoc subcommittee of two councilmembers to work with the City’s public information firm. 9. OTHER MATTERS - CITY COUNCIL Requests from Council members for possible future agenda items. No discussion or debate of these requests shall be undertaken; the sole action is whether to schedule the item for consideration on a future agenda. No public comment will be taken. NONE ADJOURNMENT 6 AGENDA CLOSED SESSION MEETING HERMOSA BEACH CITY COUNCIL Tuesday, March 13, 2012 - Council Chambers, City Hall 1315 Valley Drive 6:00 p.m. The City Council finds, based on advice from legal counsel, that discussion in open session will prejudice the position of the City in existing and anticipated litigation. CALL TO ORDER 1. PUBLIC COMMENT: This time has been set aside for members of the public to address the City Council on Closed Session items. 2. MINUTES: a. Approval of minutes of Closed Session meeting held on February 23, 2012; b. Approval of minutes of Closed Session meeting held on February 28, 2012 at 7:30am; and, c. Approval of minutes of Closed Session meeting held on February 28, 2012 at 9:24pm. 3. CONFERENCE WITH LABOR NEGOTIATOR Government Code Section 54957.6 City Negotiator: Stephen Burrell Employee Organizations: Hermosa Beach Police Officers’ Association Hermosa Beach Firefighters' Association Teamsters Union, Local 911 Professional and Administrative Employee Group Hermosa Beach Management Association Hermosa Beach Police Management Association Hermosa Beach Professional Engineers Bargaining Group Unrepresented employees ADJOURNMENT DRAFT THE CITY OF HERMOSA BEACH REQUEST FOR PROPOSALS FOR INTEGRATED WASTE MANAGEMENT SERVICES * * * March 13, 2012 Proposals Due: May 7, 2012, 4:00 p.m. Prepared by: HF&H Consultants, LLC 19200 VON KARMAN AVE., SUITE 360 IRVINE, CA 92612 Telephone: 949/251-8628 Fax: 949/251-9741 March 13, 2012 i City of Hermosa Beach CITY OF HERMOSA BEACH REQUEST FOR PROPOSALS FOR INTEGRATED WASTE MANAGEMENT SERVICES TABLE OF CONTENTS Page Section I Introduction 1 OVERVIEW OF THE REQUEST FOR PROPOSAL 1 TERM OF NEW AGREEMENT 1 SUMMARY OF REQUESTED SERVICES 1 PROPOSAL CLARIFICATIONS AND UPDATES 2 PROCESS INTEGRITY GUIDELINES AND COMMUNICATIONS DURING RFP PROCESS 3 PROPOSAL ADMINISTRATION 3 SUBMISSION OF PROPOSALS 4 PROPOSAL REPRODUCTION 5 SCHEDULE 5 Section II Current Service Data 6 DESCRIPTION OF SERVICE AREA 6 CURRENT SERVICE DATA 6 CURRENT RATES 6 RATE REVENUES 6 AB 939 PLANS 7 Section III Proposed Service Requirements 8 RESIDENTIAL SERVICE 8 OPTION 1: CART SYSTEM 8 OPTION 2: SINGLE STREAM 9 RESIDENTIAL GREEN WASTE COLLECTION – OPT-IN PROGRAM 9 RESIDENTIAL BIN AND COMMERCIAL COLLECTION SERVICES 10 SPECIAL SERVICES 12 CITY AND OTHER SERVICES 12 Section IV Key Contract Terms 14 MANDATORY COLLECTION 14 HOLIDAY COLLECTION 14 EDUCATION AND PUBLIC AWARENESS 14 FAITHFUL PERFORMANCE BOND AND LETTER OF CREDIT 14 REPORTING AND AUDITING 14 MINIMUM DIVERSION RATES 15 COLLECTION VEHICLE REQUIREMENTS 15 March 13, 2012 ii City of Hermosa Beach TABLE OF CONTENTS (continued) Page DEDICATED ROUTES 15 FEES/FUNDING 15 BILLING 16 RATE ADJUSTMENT METHOD 16 Section V Proposal Submission Requirements 17 GENERAL REQUIREMENTS 17 RATE PROPOSAL FORMS (ATTACHMENT 3) 17 SUPPORTING COST AND OPERATING DATA (ATTACHMENT 4) 17 EXCEPTIONS TO TERMS OF THE FRANCHISE AGREEMENT 18 PROPOSER OVERVIEW 18 FACILITY DESCRIPTIONS REQUIRED IN PROPOSAL 21 RATE ADJUSTMENT TERMS/DISPOSAL COMPONENT 22 IMPLEMENTATION PLAN 22 COLLECTION VEHICLE DESCRIPTION 22 DIVERSION GOAL AND ADDITIONAL DIVERSION PROGRAMS 23 OPTIONAL HHW PROGRAM 23 OPTIONAL FOOD WASTE PROGRAM 24 PUBLIC EDUCATION 24 DOWNTOWN AREA COMMERCIAL COLLECTION CHALLENGES 24 CART DISTRIBUTION 24 OPT-IN GREEN WASTE PROGRAM 25 ADDITIONAL PROPOSAL REQUIREMENTS 25 PROPOSAL ENHANCEMENTS 25 Section VI Proposal Evaluations 27 PROPOSER’S QUALIFICATIONS 27 TECHNICAL QUALIFICATIONS 27 EXCEPTIONS TO THE TERMS AND CONDITIONS 27 FINANCIAL RESOURCES 27 COSTS 27 AWARD 28 March 13, 2012 iii City of Hermosa Beach LIST OF ATTACHMENTS Attachment 1: Proposal Outline Attachment 2: Existing Service Data Attachment 3: Rate Proposal Forms Attachment 4: Supporting Costs and Operating Data Worksheets Attachment 5: Anti-Collusion Affidavit Attachment 6: Draft Integrated Solid Waste Management Services Agreement March 13, 2012 1 City of Hermosa Beach SECTION I - INTRODUCTION OVERVIEW OF THE REQUEST FOR PROPOSAL The City of Hermosa Beach (“City”) is requesting proposals from qualified solid waste companies to provide solid waste collection, transportation, recycling, and disposal services. Consolidated Disposal Services (“CDS”) currently provides the City with exclusive residential, commercial and industrial collection services, including temporary services, with the exception of construction and demolition waste. TERM OF NEW AGREEMENT The initial term of this agreement is seven years. The City may extend the agreement for up to 24-months at its sole option. Services under the new agreement will begin January 1, 2013. See Sections 2.4 and 2.5 of the draft agreement. SUMMARY OF REQUESTED SERVICES A description of the service area is included in Section II of this RFP. Existing service data provided by CDS and the City is included in Attachment 2. The services for which the City is seeking proposals are summarized in Table 1 below and are briefly described in Section III of this RFP. A more comprehensive description of the scope of services is found in the draft franchise agreement in Attachment 6. Options 1 and 2 apply only to services provided to individually-serviced residential customers; bin, roll-off box and City services are the same under both options. Proposers may propose on Option 1, Option 2 or both residential service options, and must propose on all other services. Table 1: Requested Services SERVICE TYPE SERVICE DESCRIPTION Individually- Serviced Residential Customer Services Option 1: Cart System  Cart Refuse Collection  Cart Recyclables Collection  Can/Bag Refuse and Can Recycling Collection where Carts are not Feasible  Cart Green Waste Collection at Customer Option for a Fee Option 2: Single Stream  Can/Bag Collection of Mixed Refuse and Recyclables  Green Waste Collection at Customer Option at no additional Cost March 13, 2012 2 City of Hermosa Beach Table 1: Requested Services (continued) CUSTOMER TYPE SERVICE DESCRIPTION Commercial/Multi- Family Services  Refuse Bin, Commercial Cart and Roll-Off Box Collection  Recyclables Bin and Cart Collection  Temporary Services  Non-Exclusive Construction and Demolition Debris Collection City Services – provided at no additional charge  Refuse, Recyclables and Green Waste Collection from City Facilities  Refuse Collection and Recycling for City-Sponsored Events  Refuse and Recycling Collection from Schools  Abandoned Item Collection  Public Education and Outreach – Including focused outreach to schools, businesses and multi-family customers Special Services  Bulky Item Collection  Holiday Tree Collection  Annual Document Shred Day  Door-to-Door HHW Collection (City’s Option) Optional Services  Residential and/or Restaurant Food Waste Program - if proposer is able to offer Section V of this RFP describes the required contents of the proposal. Failure to complete and submit all of the forms and the other information required in Section V may be grounds to disqualify a proposal. The proposal should be organized according to the outline shown in Attachment 1. Please note that the City’s procurement of Integrated Solid Waste Management Services is not subject to State or local public bidding laws, and the City does not intend to cause the current RFP process to become subject to such public bidding laws or regulations. PROPOSAL CLARIFICATIONS AND UPDATES After reviewing the RFP package, proposers may find that they require clarification of some requirements. Proposers may submit oral or written questions. Written responses to such questions, addenda and clarifications, if any, will be provided via e-mail to all potential proposers that leave their contact information when they request the RFP from the City. Proposers should leave the primary contact name, company name, address, e-mail address, and phone number. Only written responses will govern. Written questions may not be accepted after the date shown in the schedule in Table 2 at the end of this section, as this would leave insufficient time for the City to provide an adequate response to all potential proposers. However, if proposers have simple questions regarding how to complete submittal forms or otherwise complete the proposal requirements, proposers may continue to March 13, 2012 3 City of Hermosa Beach request assistance via telephone until the proposal due date. See “Communications During RFP Process” below for instruction on where to submit timely questions. PROCESS INTEGRITY GUIDELINES AND COMMUNICATIONS DURING RFP PROCESS All communications regarding this RFP shall be made exclusively through Pamela Townsend of the City of Hermosa Beach, who can be reached at (310) 318-0242 and by e-mail at ptownsend@hermosabch.org, or Laith Ezzet of HF&H Consultants, the City’s consultant, by mail at HF&H, 3990 Westerly Place, Suite 195, Newport Beach, California, 92660, by telephone at (949) 251-8902, by fax at (949) 251-9741 and by e- mail at lezzet@hfh-consultants.com. Proposers and their representatives are prohibited from contacting other City personnel or City Council members regarding matters related to this RFP and the award of this contract. Proposers and their representatives that contact other City personnel or City Council members after the City releases the RFP and throughout the evaluation period regarding this RFP process and contract award may have their proposals disqualified from consideration by review and action of the City Council. The “RFP evaluation period” shall terminate when the staff report to City Council regarding the proposal evaluation is publically released. PROPOSAL ADMINISTRATION The City of Hermosa Beach shall have the right to perform, and each proposer must agree to cooperate with, an investigation and review of each proposer's ability to perform the work required. Such cooperation shall apply not only to the verification of the proposer's capability and experience in the provision of services, but also to the provision of any other component of work that may be required under this procurement. In order to objectively evaluate all proposals, the City has attempted to describe the desired services and the terms and conditions in the draft franchise agreement in a manner that will allow a reasonable level of comparability among the proposals. Therefore, the City discourages, and may disqualify, proposals that substantially deviate from the RFP. Proposals that do not include the completed forms required herein and information required in Section V may be disqualified. Provided that the proposer has submitted a proposal that meets all of the minimum requirements of this RFP, the proposer may also offer additional enhancements that exceed the RFP requirements. The City reserves the right to reject all proposals, disqualify nonconforming or incomplete proposals at its sole discretion, waive deviations from the RFP, and determine whether proposers are qualified. The City reserves the right to issue addenda to the RFP, to modify the RFP, to modify the franchise agreement, or to withdraw the RFP. The City may request clarification or additional information from any of the proposers at any point in the RFP process. Proposals must comply fully with the requirements detailed in this RFP. Required supporting documentation must be included as attachments and be appropriately identified. March 13, 2012 4 City of Hermosa Beach The existing service information presented in Section II and Attachment 2 of this RFP is for information only and the City makes no representations as to its accuracy. All proposers should take whatever steps they believe are necessary to reasonably establish the actual existing service information when preparing their proposals. SUBMISSION OF PROPOSALS The draft franchise agreement containing the terms and conditions under which service is anticipated to be provided (see Attachment 6) is an integral part of this RFP. This draft franchise agreement includes information related to service standards, rate setting, billing, reporting, and other activities related to the performance of these services. Submission of a proposal shall constitute acknowledgment and acceptance of all the terms and conditions contained in this RFP, and in the draft franchise agreement, unless exception to particular terms and conditions are expressed in writing in the proposal. The successful proposer will be expected to enter into a franchise agreement with the City; only those exceptions noted in its proposal will be considered for modification. The City is not obligated to agree to these exceptions but reserves the right to negotiate modification of such noted exceptions to the draft franchise agreement. Each and every term and condition of the proposal shall be irrevocable by the proposer until the City enters into a franchise agreement to perform the scope of services for the proposed rates according to those terms and conditions. Within fifteen (15) business days of the selection of a proposal by the City Council, the selected proposer is expected to execute the franchise agreement, and furnish the required performance bond and letter of credit. The form of the financial instruments is described in Sections 9.6 and 9.7 of the draft franchise agreement. Within thirty (30) days following execution of the franchise agreement, and in any event prior to the performance of any services thereunder, the proposer is expected to provide evidence of all required insurance. The terms of this RFP and the proposals are firm for a period of two hundred and seventy (270) days. Once submitted, responses to this RFP cannot be altered without the City's express written consent. The City reserves the right to reject any or all proposals, and may elect to make a decision without further discussion or negotiation. This RFP is not to be construed as a contract of any kind; the City may withdraw or modify this RFP at any time. The City is not liable for any costs incurred by any potential proposer in the preparation of a response to this RFP. Proposers must submit four (4) bound copies, one (1) unbound photocopy-ready copy, and an electronic copy of the complete proposal in a sealed package. The package should be clearly labeled: ATTENTION: CITY CLERK PROPOSAL FOR INTEGRATED WASTE MANAGEMENT SERVICES NAME OF PROPOSER PROPOSER’S ADDRESS PROPOSER’S CONTACT PERSON PROPOSER’S TELEPHONE NUMBER PROPOSER’S FAX NUMBER PROPOSER’S EMAIL ADDRESS March 13, 2012 5 City of Hermosa Beach The proposal may be mailed, couriered, or hand delivered to the City of Hermosa Beach, 1315 Valley Drive, Hermosa Beach, California 90254. All proposals must be received by the City Clerk of Hermosa Beach by the date and time shown in the schedule in Table 2 at the end of this section, City of Hermosa Beach time. Proposals received after this time and date may be returned unopened. Postmarks will not be accepted as proof of receipt. PROPOSAL REPRODUCTION Black-and-white copies of the proposals may be made by the City for review by City Council or other parties, either from the unbound copy or from the electronic file submitted. Proposals should be prepared in a manner that reproduces clearly and legibly in black and white. Use of color and dark shading should therefore be minimal. All proposal pages should be 8.5” by 11” to facilitate reproduction. Any financial information that the proposer requests to remain confidential should not be included in the electronic file, but only in a sealed envelope under separate cover. SCHEDULE The procurement schedule is shown in Table 2. These dates are subject to change by the City. Table 2: Procurement Schedule DATE ACTIVITY March 14, 2012 Request for Proposals available March 27, 2012 Pre-proposal conference at 11:00 a.m. at City Hall, 1315 Valley Drive, Hermosa Beach April 3, 2012 Last day to submit written questions May 7, 2012 Proposals due to the City Clerk by 4:00 p.m. August 2012 Award by City Council January 1, 2013 Start of service March 13, 2012 6 City of Hermosa Beach SECTION II – CURRENT SERVICE DATA DESCRIPTION OF SERVICE AREA The City of Hermosa Beach is a coastal city in the South Bay area of Los Angeles County, located between the cities of Manhattan Beach and Redondo Beach. According to the latest census data as published on the California Department of Finance website, as of April 1, 2010, the City has a total of 9,550 housing units (both single and multi- family) and a population of 19,506 people. The following is an estimated residential parcel count, based upon the number of units on each parcel: 1 dwelling unit: 4,875 parcels 2 dwelling units: 928 parcels 3 dwelling units: 158 parcels 4 dwelling units: 158 parcels 5 or more dwelling units: 173 parcels 1 mobile home park with 60 units 1 small RV park Actual estimates of customer counts are included in Attachment 2. CURRENT SERVICE DATA The City has obtained from the current hauler, CDS, or provided from its own records, the data provided in Attachment 2. As stated in Section I, the City neither warrants nor accepts responsibility for the accuracy of the information. It is the responsibility of each proposer to undertake, at its sole cost, any verification of this information necessary for it to submit a response to this RFP. CURRENT RATES The current rates effective for calendar year 2011 are in Attachments 2-A through 2-F, along with the estimated customer counts by rate category. Rates have not increased since January 1, 2010. RATE REVENUES Total rate revenue received for calendar year 2010 is included as Attachment 2-J. March 13, 2012 7 City of Hermosa Beach AB 939 PLANS The City is committed to fully complying with AB 939 and future increases in diversion rate goals. The City is part of the Los Angeles Regional Agency, or LARA. Therefore, the City does not submit an annual report to CalRecycle with the City’s diversion rate. LARA’s estimated diversion rate is approximately 70% for 2010. The current hauler reported a diversion rate for 2010 of 26% of the material it collects. March 13, 2012 8 City of Hermosa Beach SECTION III – PROPOSED SERVICE REQUIREMENTS The City is requesting proposals for the services described below. If these services represent a significant change to current services, such changes are noted. A more comprehensive description of these services is found in the draft franchise agreement, included as Attachment 6 of this RFP. References to sections and appendices refer to the draft franchise agreement; references to attachments refer to attachments to this RFP. RESIDENTIAL SERVICE Current Service Arrangements - Currently, individually serviced residences provide their own barrels for refuse collection, the hauler provides recycling containers, and there is no green waste collection. There is currently a mix of recycling carts, barrels and crates in distribution. Collection is manual and once per week, with both waste streams collected on the same day. The existing carts are collected using a flipper attached to a collection bin carried on the front of the collection vehicle. Service is currently billed at a flat rate for unlimited collection. Challenging Collection Areas - Areas of the City, particularly near the coast, require collection from very narrow streets and alleys. There are areas where full-size collection vehicles will not fit, and even smaller vehicles will have difficulty making turns. Some streets may be too space constrained to accommodate the use of standard automated collection arms. OPTION 1: CART SYSTEM Option 1 includes a cart based system with volume-based rates. This collection system addresses the City’s desire to incentivize recycling and decrease overall disposal. Refuse Cart Collection – Hauler will distribute 96, 64, and 32-gallon refuse carts, as requested by customer, who will be billed based upon the size and number of refuse carts selected. If the customer does not select a refuse cart size, one 64-gallon cart will be provided to areas of the City that can accommodate that size; one 32-gallon cart shall be distributed to non-responsive customers in areas determined to have limited storage space. The City believes that the area in which the smaller default size may be applicable would be north of 27th Street; this area includes approximately 900 to 1,000 homes. City and hauler will work together prior to cart distribution to further refine neighborhoods that may benefit from an alternative default cart size. See Sections 4.1.2 and 4.4.1.1. Recycling Cart Collection – Hauler will distribute 96, 64, and 32-gallon recycling carts, as requested by customer. Recyclables collection shall be once per week on the same day as refuse collection. There shall be no additional charge for the recycling cart, and customers that regularly fill their recycling carts may request additional carts at no additional charge. If customer does not select a recycling cart size, the default shall be the same size and number of carts as the default refuse cart(s) for the particular area. See Sections 4.2.1 and 4.4.1.1. March 13, 2012 9 City of Hermosa Beach Can Service – Some customers will be unable to accommodate carts. These customers will be permitted to retain refuse collection service from customer-provided containers. The contractor shall provide cans for recyclables collection. Collection quantities will not be limited and customers shall be charged a flat rate. Walk-Out Service – Residents that have difficulty moving their carts or cans to the point of collection due to age or physical disability shall be offered walk-out service, whereby contractor enters the backyard or other container storage location, moves the carts or cans to the curb for collection, and returns the carts or cans after collection at no additional charge. Other residents may request this service for an additional charge. See Section 4.1.4. Backyard Compost Program – Contractor shall provide composting/worm bins to residential customers upon request; cost to be covered by a customer co-pay and City subsidy. Contractor shall offer at least two composting classes per year and provide a composting brochure at no additional cost. See Section 4.3.4. OPTION 2: SINGLE STREAM This option includes unlimited collection of all solid waste for sorting at a mixed waste processing facility to recover recyclables. This method of collection would provide for the fewest collection vehicle passes on each street. Containers – Containers for the collection of refuse and recyclables in a single wastestream shall be provided by customers. Collection – Once per week, refuse and recyclables generated by individually-serviced residents will be co-collected in the same collection vehicle in one pass and sent for processing. All customers shall continue to be charged a flat rate for collection. Contractor will be required to divert at least a minimum percentage of this waste from landfilling. RESIDENTIAL GREEN WASTE COLLECTION – OPT-IN PROGRAM Green Waste service would be a new program for the City. A few areas of the City generate sufficient quantities of green waste to warrant separate collection, while many homes in other areas of the City generate very little green waste. Proposers are provided with the opportunity to provide input and propose parameters for this program. Under both Options 1 and 2, contractor shall provide a residential green waste program whereby residents may opt-in to participate. Under Option 1, participants may pay a monthly fee per cart for green waste collection as part of the volume-based rate structure. Upon request, hauler will distribute 96, 64, and 32-gallon green waste carts to Customers. Customers that do not specifically request a green waste cart or carts shall not be provided with one. Customers shall be charged a monthly fee for each green waste cart distributed. See Sections 4.3.1 and 4.4.1.1. Under Option 2, customers may participate by requesting green waste carts at no additional charge as part of the unlimited service rate structure. March 13, 2012 10 City of Hermosa Beach RESIDENTIAL BIN AND COMMERCIAL COLLECTION SERVICES Refuse Bin Service - Contractor shall provide bin service to residential customers not receiving cart/can service, and commercial customers that can accommodate a bin. Contractor shall provide 1, 1.5, 2, 3, 4, 6 and 8 cubic yard bins upon request. See Section 4.1.5. Commercial Cart Service – As an alternative to bin service, Contractor shall provide 96, 64 and 32-gallon refuse carts to service commercial customers that cannot accommodate bins. See Section 4.1.6. Roll-Off Box Collection – Upon customer request, Contractor shall provide and service 20, 30 and 40 cubic yard roll-off boxes, and shall service compactor roll-off boxes. See Section 4.1.12. Temporary Bin and Roll-Off Box Service, Construction and Demolition Debris - Contractor shall be the exclusive provider of temporary services, with the exception of construction and demolition debris collection, which is not exclusive but must be collected upon request. Contractor must process all construction and demolition debris roll-off loads and divert 70% of the construction and demolition debris collected. See Section 4.2.6. Bin Cleaning - The franchisee will be required to clean or replace bins upon customer request once per year at no additional charge. Contractor may charge an approved fee for additional cleanings. See Section 4.4.4. Locking Bins – Contractor shall provide locking bin service to customers that request it for an additional monthly fee. See Section 4.1.11. Scout Service – Contractor may continue to charge an additional fee for providing operationally required, or customer-requested, use of a scout vehicle. Application of this fee to customers is subject to City approval. See Section 4.1.9. Push-out Service – Contractor may charge an additional fee for each 50 feet that the bin must be moved to the point of collection, over 10 feet. Application of this fee to customers is subject to City approval. See Section 4.1.10. If a scout fee is charged, then push-out fees do not apply. Mandatory Commercial Recycling – Source separated collection of commingled recyclables is currently offered to multi-family bin and commercial customers at approximately 75% of comparable refuse rates. Under the new agreement, contractor will be required to provide commingled recyclables collection service using bins or carts to all customers requesting it at 50%of comparable refuse rates. Contractor will contact all bin and permanent roll-off customers within the first 12 months of the service under the new agreement to attempt to establish a recycling program. Proposers may propose additional diversion programs as well. Contractor shall further assist the City in meeting mandatory commercial recycling requirements by providing relevant reports, including, but not limited to, reports of commercial customers generating more than four cubic yards of solid waste per month and multi-family bin customers without recycling programs. See Section 4.2.2. March 13, 2012 11 City of Hermosa Beach Downtown Collection Challenges – Downtown solid waste conditions are challenging, resulting in odor and potential water quality issues. Businesses’ container storage in this area can be minimal. The City had two downtown bin enclosures. On July 26, 2011, City Council agreed to close one enclosure and focus on controlling the use of the other enclosure, located in Lot A, at the corner of Beach Drive and 11th Street. This enclosure needs constant cleaning. Overflowing containers are also an issue. Porter Service – On August 1, 2011, the contractor began porter service, whereby a contractor employee collects waste from downtown area business and transport the waste to the Lot A bin enclosure. Contractor is responsible for coordinating collection with each business, and has been steam cleaning the bin enclosure three times per week (Monday, Wednesday and Friday). Contractor collects from the businesses between 4:00 a.m. to 12:00 p.m. and between 4:00 p.m. and 12:00 a.m. each day. Some customers require collection multiple times per day, while others may require collection once or twice per week. Contractor controls access to the bin enclosure. The initial cost for this service was estimated to be $6,800 per month prior to implementation, assuming eight hours per day at $28.00 per hour, with this cost divided among the serviced customers. (Actual service hours per day are higher, as described above.) Thirty-seven customers are impacted. See Attachment 2-O for the staff report addressing the implementation of this service and Attachment 2-P for an updated customer list. Customers in the Downtown area receiving porter service are charged for both bin collection from the shared Lot A enclosure and porter service. These costs are allocated among the participating customers by the contractor, who is responsible for billing customers for these services. This practice will continue under the new agreement. This service will be continued under the new agreement. See draft agreement section 4.1.14, RFP page 25 and Attachment 3-C, Row 1. Downtown Enclosure Service Levels: Bins vs. Roll-Off Boxes – Currently, solid waste collection services from the shared downtown bin enclosure consists of six four-cubic-yard refuse bins collected seven days per week, including holidays, and four six-cubic-yard recycling bins, placed alongside the enclosure, collected three times per week. The enclosure also includes a container in which local businesses place used cooking oil for collection by a third-party. The City has investigated the possibility of developing a new collection enclosure and transition from bin to roll-off compactors for the collection of refuse and recyclables. Additional Service Possibilities - Downtown can be overwhelmed with additional solid waste on holiday weekends, requiring the hauler to provide extra pickups on days that collection would otherwise be delayed. The City may transition from bin collection to using roll-off compactors at Lot A in the future. The City is seeking additional ideas from proposers to address cleanliness issues in the Downtown areas. Proposers are asked to propose solutions to these issues, describing specific steps proposer will take, and including any associated costs, if any. See Section 4.1.13. March 13, 2012 12 City of Hermosa Beach SPECIAL SERVICES Holiday Tree Collection and Recycling - Contractor will collect and divert holiday trees placed curbside from all residential customers for three weeks following December 25. Contractor shall provide up to three roll-off boxes during the three weeks following December 25. City will designate where the boxes will be placed. Currently, the boxes are placed at the City yard for use by City crews or for City customers that drop off trees. See Section 4.3.2. On-Call Bulky Item Pickup - The Contractor will be required to provide on-call bulky item pickup service to all residential customers (both cart and bin) at no additional charge, up to three cubic yards per pickup, and to commercial customers for a fee. See Section 4.1.15. Optional Food Waste Diversion Program – City may require franchisee to implement a food waste diversion program in the future, at which time the contractor will be entitled to a rate adjustment for the additional costs. See Section 4.1.19. Proposers may alternatively propose an optional program at this time. This would be a new service and the City may or may not implement this program. Optional Door-to-Door Household Hazardous Waste Collection Services - The City is seeking quotes for providing door-to-door household hazardous waste collection services. This would be a new service and the City may or may not implement this program. Proposers are asked in Section V of this RFP to describe the program, and to propose a cost on Attachment 3-G. CITY AND OTHER SERVICES City Facilities’ Collection - Contractor will collect and divert or dispose of all refuse, recyclable material, and green waste generated at facilities owned and/or operated by the City, including street sweepings, at no charge to the City. The current list of facilities and service levels are included in Attachment 2-K. See Section 4.5.1. City Litter Container Collection - Contractor shall collect from all public litter and recycling containers in the City. See Section 4.5.2 of the draft agreement for collection frequencies. See container map in Exhibit 4 of Attachment 6 for count and location of existing containers, identified by responsible collection contractor (Consolidated, Athens or True Green). As of the start of service under this agreement, the contractor will assume collection responsibility for all containers currently collected by the solid waste contractor. The containers identified as collected by Athens or True Green will be collected by the contractor beginning July 1, 2013, as agreements with these third-party contractors expire June 30, 2013. The City may place recycling containers next to existing litter containers that do not already have accompanying recycling containers. These containers shall also be collected by contractor at no additional charge. City Facilities In-Office Recycling Containers – Contractor shall be responsible for providing to City offices desk-side recycling containers for individuals and in-office recycling containers for common areas, such as copy and conference rooms. A recent survey of City facilities estimated that 44 desk-side containers, nine common-area containers and ten containers for March 13, 2012 13 City of Hermosa Beach community center classrooms would be appropriate, but contractor will be expected to provide as many containers as appropriate to facilitate recycling demand. School District Collection – Contractor shall collect all refuse, recycling and green waste from K-12 public schools and school administration offices at no additional charge. Currently there are two elementary schools in the City, both of which receive free service. There are currently no other public schools in the City. The estimated annual service cost saved under the existing agreement is approximately $18,500 per year. Current services are included in Attachment 2- K, along with other City facilities’ service levels. These service levels may change over time. See Section 4.5.3. City-Sponsored Events - Contractor will be required to provide litter boxes and liners for refuse and recyclables collection at City–sponsored events, and other select in-City events. City crews transport solid waste from event litter boxes to existing bins at the City yard or parks for disposal or processing by contractor, and will continue to do so under the new agreement. The City may call for additional bin or roll-off pickups at City facilities at no additional charge for collection of event waste. See Section 4.5.4. The list of events serviced and litter boxes currently provided are included in Attachment 2-L. Attachment 2-L also describes the services to be provided under the new agreement. Recycling containers are not currently provided, but will be required under the new agreement. Provided the event is not City-sponsored or listed in Section 4.5.4 of the draft agreement, contractor shall be permitted to charge sponsors for litter boxes and liners in accordance with the approved rate schedule. Proposers are asked to propose a maximum rate for such boxes and liners. Document “Shred Day” – Contractor shall conduct an annual “shred day” for all City residents and businesses to deliver paper for shredding. This is a new event. Documents must be guaranteed to be confidentially and completely destroyed, and shredded paper must be diverted from landfilling. See Section 4.1.20. Abandoned Item Collection – City crews collect and deliver abandoned items to the City yard. Contractor will divert or dispose of these items at no additional charge. See Section 4.5.6. March 13, 2012 14 City of Hermosa Beach SECTION IV –KEY CONTRACT TERMS A comprehensive description of contract terms is found in the draft franchise agreement. Below are some key terms to bring to your attention. Section references to the draft franchise agreement are included in the following summary. MANDATORY COLLECTION The City Municipal Code currently provides for mandatory collection. The City reserves the right under Section 6.7.9 to establish exemptions. HOLIDAY COLLECTION If the regularly scheduled collection day falls on New Year's Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving Day, or Christmas Day, collection days for the remainder of that week shall all be postponed one collection day, with the exception of the Downtown area. Areas which receive heavier traffic on holiday weekends shall continue to receive service and shall receive extra pickups upon request. See Sections 4.1.13 and 4.6.1.1. EDUCATION AND PUBLIC AWARENESS The City recognizes that effective public education is the key to implementing effective programs. In addition to providing general outreach and education to customers, contractor is required to provide focused outreach to schools, businesses and multi-family customers. Refer to Section 5.2 of the draft franchise agreement for specific requirements relating to minimum public outreach requirements. FAITHFUL PERFORMANCE BOND AND LETTER OF CREDIT The franchisee will be required to provide a performance bond and/or letter of credit, for a total of $500,000 in surety. See Sections 9.6 and 9.7. REPORTING AND AUDITING The draft franchise agreement contains detailed auditing procedures, and specific reporting and record keeping requirements. See Article 8 of the draft franchise agreement for detailed information on the required records, reports, and review requirements. Note that the franchisee is required to reimburse the City for biennial audits, up to $80,000 for the first audit after FY 2013 and $50,000 for each subsequent biennial audit (subject to CPI adjustments). See Section 8.2.6. March 13, 2012 15 City of Hermosa Beach MINIMUM DIVERSION RATES The City’s contractor reported a 26% diversion rate for the waste it collected in 2010.Proposers shall propose a minimum diversion rate for hauler-collected solid waste to which proposer would be contractually bound. This diversion rate must be supported by diversion programs and tonnage estimates in Attachment 4-G. Third-party diversion shall not be included in this calculation. Proposed diversion rate and supporting programs will be considered in the proposal evaluation. See Section 4.2.5. COLLECTION VEHICLE REQUIREMENTS All of contractor’s route collection vehicles shall use liquefied natural gas (“LNG”) or compressed natural gas (“CNG”) within six months of the start of service, and shall be no older than fourteen years at any time during the agreement term. Other vehicles such as roll- off, bulky item, and supervisor trucks are not required to meet these age and fuel requirements under the franchise agreement (unless and until otherwise required by law), but where possible, newer, natural gas vehicles are encouraged and should be noted on the proposed vehicle list. Certain areas of the City cannot accommodate full-size collection vehicles, specifically many areas north of 27th street. Proposers will need to identify the size and type of vehicles to be used in this area (see #9 in Section V of RFP). The successful proposer shall propose a collection vehicle no larger than the collection vehicle currently in use in this area, which is an Isuzu N chassis with a 3 ton capacity. Limitations on the size of the vehicle to be used in these areas shall be added to the agreement based upon the successful proposal. See Section 4.6.2. DEDICATED ROUTES Solid waste collected from the City shall not be commingled with solid waste from other jurisdictions. See Section 4.10. FEES/FUNDING Contracting Cost Reimbursement - Upon execution of the franchise agreement, the franchisee will be required to remit to the City a one-time contracting cost reimbursement of $150,000 to reimburse the City for its costs of developing and awarding the franchise. See Section 3.1. Collector Fee – Contractor shall continue to shall pay a collector fee equal to 10% of gross revenue received under this agreement. See Section 3.2. Administrative Fee - Contractor shall pay an administrative fee of $50,000 per year, adjusted annually by the change in the CPI excluding food and energy. This fee is to cover the City’s costs of administering the contract; this fee was not previously collected. See Section 3.3. AB 939 Fee – Contractor shall pay $0.25 per home per month for residential cart customers, and $0.25 per cubic yard of refuse collected from bins, commercial carts and roll-off boxes. See Section 3.4. March 13, 2012 16 City of Hermosa Beach Collector, Administrative and AB 939 fees shall be paid to the City monthly. BILLING Contractor shall continue to bill residential customers quarterly and commercial customers monthly, and contractor is responsible for bad debt. The City intends to continue its current practice of placing delinquencies on the County property tax roll for both residential and commercial customers. See Section 6.7. RATE ADJUSTMENT METHOD Initial rates will be set based on the rates proposed in Attachment 3. The rates will thereafter be annually adjusted using a weighted index according to the computations described in Article 6 of the draft franchise agreement. Proposers shall propose disposal cost component increases. Initial weightings will be based upon data provided in Attachment 4-F of the proposal. March 13, 2012 17 City of Hermosa Beach SECTION V - PROPOSAL SUBMISSION REQUIREMENTS The following information must be organized according to the outline in Attachment 1. Requested information should be identified by letter or number in the outline. All items must be addressed. All pages must be sequentially numbered. 1. GENERAL REQUIREMENTS At the beginning of the proposal, include all of the following: 1.a Title page 1.b Transmittal letter identifying the name, mailing address, e-mail address, telephone number and facsimile number of the proposal contact person 1.c Table of contents 1.d An executed anti-collusion affidavit (Attachment 5) 1.e Signature pages of all RFP addenda issued by City 2. RATE PROPOSAL FORMS (ATTACHMENT 3) The service rates proposed for each type of service should be included in the rate schedules in Attachment 3. In addition to the rates, proposers should calculate the estimated total annual rate revenue from each type of service. The total annual rate revenue from the proposed rates should be summarized in Attachment 3-A (“Summary of Rate Proposal”) and reconciled to the proposer’s estimated revenue requirement (explained below) in Attachment 4. Calculations from Attachments 3-C through 3-H should be summarized on Attachment 3-A. Attachment 3-I must be completed as well. The City reserves the right to rebalance rates prior to contract execution if the change is revenue neutral to the franchisee. Exhibit 2 of the draft agreement in Attachment 6 contains rates for other services that are set by the franchise agreement. A proposal may be deemed nonconforming or incomplete unless Attachment 3 is complete and submitted in its entirety. A Microsoft Excel file containing Attachment 3 will be available after the pre-proposal conference and can be e-mailed to proposers requesting it by contacting Lisa Keating of HF&H at (949) 251-4817 or by e-mail at lkeating@hfh-consultants.com. 3. SUPPORTING COSTS AND OPERATING DATA (ATTACHMENT 4) The supporting cost and operating data worksheet in Attachment 4-A provides a format for proposers to estimate their annual revenue requirement for providing all of the proposed services. Proposers must provide the operational statistics on which their estimated costs are based in Attachments 4-C and 4-D. The operating statistics will be used to evaluate the reasonableness of the proposer’s estimated revenue requirement. The proposer’s estimated revenue requirement will be used to evaluate the reasonableness of the proposed rates. Attachment 4-F must be completed and may be used to determine weightings of cost March 13, 2012 18 City of Hermosa Beach components for rate adjustments. Attachment 4-G demonstrates how the proposer plans to reach required diversion levels. Note that diversion programs put forth in Attachment 4-G, and elsewhere in proposer’s proposal, will be incorporated into the franchise agreement. A proposal may be deemed nonconforming or incomplete unless Attachment 4 is complete and submitted in its entirety. A Microsoft Excel file containing Attachment 4 will be available after the pre-proposal conference, and can be e-mailed to proposers requesting it by contacting Lisa Keating of HF&H at (949) 251-4817 or by e-mail at lkeating@hfh- consultants.com. 4. EXCEPTIONS TO TERMS OF THE FRANCHISE AGREEMENT Include a list of any exceptions to the RFP and draft franchise agreement. Please reference the agreement section, describe the nature of the proposed exception, and identify proposed substitute language. In order to demonstrate that, but for the noted exceptions, the proposer agrees to all terms and conditions of the agreement as written, sign and include in this proposal the signature page of the draft agreement, along with the noted exceptions. The proposal is not considered complete without this signed page. 5. PROPOSER OVERVIEW 5.a Business Structure Provide the following information regarding the proposing entity and entity that would provide a corporate guarantee, if applicable. i Legal name of proposing entity that would sign franchise agreement and whether it is an individual, a partnership, a corporation, or a joint venture. ii Entity that would submit financial statements and whether it is an individual, a partnership, a corporation, or a joint venture. If other than proposing entity, indicate relationship and willingness to sign corporate guarantee (see Exhibit 5 in Attachment 6). iii Number of years in which proposing entity has been organized and doing business under this legal structure (if other than an individual). iv Names of owners/stockholders with more than 10% of the company’s equity. v Names of all officers. vi Corporate headquarters. vii Local headquarters (if different). 5.b Description of Proposer’s Experience Identify the names of all the public agencies in Los Angeles County, where the proposer currently provides service, including what type of service. Additionally, the proposer should submit a brief description of the proposer’s experience in California providing solid waste services under exclusive agreements to city or county customers that qualifies it to perform the services being procured through this RFP; provide a March 13, 2012 19 City of Hermosa Beach table, including each jurisdiction’s services (residential, commercial, etc). Include preferably three or more detailed references for current municipal customers with services most similar to those requested in this RFP. References shall include: i The name of the jurisdiction. ii Time period during which proposer provided service to the jurisdiction. iii The type of customers served (e.g. residential or commercial). iv The services performed (e.g. refuse collection, recyclable materials collection or green waste collection). v Residential collection methods (e.g. manual or automated). vi Whether the services were exclusively or non-exclusively provided in the jurisdiction by the proposer. vii The name, address and telephone number of the jurisdiction representative responsible for administering the contract. Additionally, please provide at least one municipal reference for service transitions from another hauling company, including a brief description of the old and new services, and service transition dates, as well as the information listed in i to vii above. 5.c Information Regarding Past and Pending Litigation Describe all civil legal actions with government agencies, and all criminal legal actions now pending or that have occurred in the past ten years against: i The key personnel described in Section 5.d. ii The owners and officers of the company. ii The entity submitting the proposal. iii Any parent or affiliated company for actions filed in the State of California (for affiliates, proposer may limit disclosures of non-criminal matters to those in the Los Angeles County area). Additionally, proposers should include any additional current or recent litigation or other regulatory issues that may impact the proposer’s ability to provide the services described in its proposal and may otherwise be presented to, or questioned by, the City. Proposers may include a response to any negative allegations at this time. 5.d Key Personnel Identify and describe the qualifications and experience the City can expect of the key personnel your company would assign to the City. Provide a brief biographical description of the proposed management team members that will fill these described jobs, specifically including the field supervisor required per Section 5.1.4 of agreement. Indicate the office locations for each key person assigned to the franchise. March 13, 2012 20 City of Hermosa Beach Indicate the percentage of time that the field supervisor will have dedicated exclusively to the City of Hermosa Beach, identify all other cities field supervisor will simultaneously be responsible for, and indicate the number of years of experience the field supervisor has in that position. 5.e Financial Information Initially, proposers must provide the following financial information in the proposal for the proposing entity or, if a guarantee is offered, for the guarantor: i The type of financial statements produced (e.g. audited, reviewed or compiled) and the corporate entity that they represent (proposer or corporate guarantor). ii The most recently completed fiscal year for which financial statements are available. iii Annual revenue from the most recently completed financial statements for the proposer or, if applicable, the corporate guarantor. iv Current Assets to Current Liabilities ratio (current assets/current liabilities) from the most recently completed financial statements for the entity that will provide the guaranty. v Total Liabilities to Total Assets ratio (total liabilities/total assets) from the most recently completed financial statements for the entity that will provide the guaranty. If selected for further consideration, proposers must be prepared to submit financial statements within five (5) business days of the request for the most recently completed fiscal year for the entity that will guarantee the performance of the franchise agreement. All such statements would need to be prepared and presented in accordance with Generally Accepted Accounting Principles applied on a consistent basis, and must include a statement by the chief financial officer of the proposer’s company that there has been no material adverse change in conditions or operations, as reflected in the submitted balance sheets, income statements and cash flow statements, since the date on which they were prepared. If requested to submit financial statements, the proposer may submit a single copy of its financial statements stamped “confidential” with a written request that it be returned to the proposer after the proposal process is complete. The City will attempt to maintain the confidentiality of such a request, although confidentiality cannot be guaranteed. Prior to award, the selected proposer will be required to submit “reviewed” or “audited” financial statements that demonstrate reasonable financial resources and stability to the satisfaction of the City. If awarded the contract, the financial statements shall remain with either the City or its consultant. 5.f Insurance Proposer must submit evidence that the proposer either has, or is able to obtain, the insurance coverage required in Section 9.4 of the draft franchise agreement in Attachment 6. Additionally, proposers should indicate whether they carry pollution and/or environmental liability insurance or commercial crime insurance. Please describe the insurance carried, including provider and policy limits. March 13, 2012 21 City of Hermosa Beach 6. FACILITY DESCRIPTIONS REQUIRED IN PROPOSAL 6.a Transfer Facilities For each transfer facility, if any, please identify the following: i The name and address of the facility. ii Statement regarding any relationship between the proposer and the facility owner/operator (if any). iii The price per ton for transfer and disposal of refuse. iv Estimated date for start of operation, if facility is not currently in operation. 6.b Processing Facilities Proposers must identify in their proposals any facilities they plan to use for the: • processing of the commingled recyclables • processing of green waste • processing of mixed waste (required under Option 2, and if otherwise applicable) • transformation of refuse (Waste-To-Energy), if applicable • processing of mixed construction and demolition debris • processing of food waste, if applicable For each facility, please identify the following: i The name and location of the facility. ii A statement regarding any relationship between the proposer and the facility owner/operator (if any). iii The material to be processed (green waste, commingled recyclables, mixed waste, food waste). iv The price per ton. These four items must be included for each facility to be used. 6.c Operating Facilities Proposers must provide information about the operating facilities that they plan to use, including: i Yard address for equipment and personnel staging and arrangements for maintenance of equipment. ii Office address for customer service, public relations, billing, and franchise administration. iii Other operating facilities to be used in providing service under this franchise agreement. March 13, 2012 22 City of Hermosa Beach 6.d Disposal Facilities For each disposal facility, please identify the following: i The name and address of the facility. ii Statement regarding any relationship between the proposer and the facility owner/operator (if any). iii The price per ton. 7. RATE ADJUSTMENT TERMS/DISPOSAL COMPONENT i Propose a rate adjustment index/method for adjusting the disposal component of the rates. Proposers proposing to use third-party facilities where the City can easily verify gate rates paid by the contractor may propose a pass-through cost. Proposers that propose to use their own disposal facility(ies) should propose an index such, as a CPI, or other method for adjusting the disposal component that can be independently verified. ii Indicate whether a cap (maximum limit) on increases to the disposal or other rate components can be offered. iii Indicate any solid waste facility capacity guarantees being offered. iv Provide information on facility ownership or long-term disposal or processing agreements that help support these caps and/or guarantees. 8. IMPLEMENTATION PLAN Proposers should provide an implementation schedule. The proposal must clearly demonstrate that your company has the ability to implement the services in accordance with the City’s transition date, including meeting equipment, personnel, administration, maintenance and public education and outreach requirements. 9. COLLECTION VEHICLE DESCRIPTIONS Please provide a table that includes the following information for each vehicle to be used under this franchise agreement. Proposers shall clearly identify, and include the size of, the smaller vehicles that will be used for collection from narrow streets and alleys. 1. Make 2. Model 3. Model Year 4. Type of fuel 5. Vehicle type (front loader, rear loader, roll-off, etc.) March 13, 2012 23 City of Hermosa Beach 6. Number of vehicles with this description to be used 10. DIVERSION GOAL AND ADDITIONAL DIVERSION PROGRAMS Proposers shall propose a minimum diversion rate for all solid waste to be collected by contractor under the new agreement. Supporting programs and tonnage estimates must be included in Attachment 4-G. See Section 4.2.5. Describe specific diversion plans that may be proposed, in addition to those required by the RFP, in order to reach this proposed diversion goal. Proposers must demonstrate how the diversion rate shall be achieved. If the proposer is willing to commit under the new agreement to diverting any special materials (for example, Styrofoam or carpet), describe specifically how the material will be collected and diverted. If proposer can offer a recycling incentive program such as RecycleBank, proposer should describe the program in detail, including:  Who would participate;  Effort required on participant’s part;  How benefits are earned and redeemed;  What the benefits are;  An example of a typical customer’s benefits (i.e., what would a customer that filled a 96- gallon recycling cart weekly receive?); and,  Cost to the City or ratepayers, if any. 11. OPTIONAL HHW PROGRAM The City is considering the economic feasibility of a residential door-to-door household hazardous waste (HHW) program and has requested a proposed per dwelling unit cost. This program shall be offered to residents receiving either cart or bin refuse service (single and multi-family customers). There are an estimated 9,550 dwelling units in the City. Indicate per dwelling unit cost per month. Describe the items to be collected in your proposed HHW door-to-door collection program. Specifically indicate whether the program will include the collection of Sharps and non-controlled pharmaceuticals. Indicate whether the proposing company shall provide the service, or what subcontractor would be used. In addition to providing a door-to-door program costs, proposers may propose an alternative HHW disposal option, such as drop-off events. Please provide program descriptions and additional costs, if any, associated with the alternative options. March 13, 2012 24 City of Hermosa Beach 12. OPTIONAL FOOD WASTE PROGRAMS Indicate whether proposer can provide a restaurant and/or residential food waste program. Indicate whether there are additional costs for this program and how the program would be structured. Provide estimates as to the number of participants and annual tons to be diverted under each program. Describe collection procedures and facilities to be used. Include start dates and, if a pilot program is proposed, the duration of the program and geographic area to be served. The City reserves the right to require, and negotiate rates for, a residential and/or restaurant food waste program at a future date. See Section 4.1.19. 13. PUBLIC EDUCATION At a minimum, contractor shall be required to provide recycling education and outreach to customers as described in Section 5.2 of the draft agreement. Proposers may propose outreach programs and, if proposed, should describe programs in enough detail to include as contract terms, specifying materials to be developed, meetings to be held, contractor staff time and other resources to be committed, and additional program details. 14. DOWNTOWN AREA COMMERCIAL COLLECTION CHALLENGES Solid waste conditions in the downtown commercial area, including Pier Plaza, are challenging, resulting in odor and potential water quality issues. Container storage can be limited in this area. Downtown bin enclosures need constant cleaning. Overflowing containers and holiday weekend collections need particular focus in the Downtown area. A. Porter Service – Proposers shall provide a monthly cost to provide porter service, in which the contractor provides containers and bags as necessary to all participating downtown businesses, and collects all solid waste from these businesses as often as necessary to prevent overflow at each business. Contractor shall be responsible for allocating this fee among serviced businesses and billing such customers. This cost shall be provided on Attachment 3- C. See Section 4.1.14 for minimum service requirements. B. Additional Downtown Area Assistance - Proposers are asked to propose solutions, if any, that will improve collection services, cleanliness and appearance in regards to Downtown solid waste issues. Proposal should describe plans in detail and provide additional costs, if any. 15. CART DISTRIBUTION Proposer shall include the cart size distribution upon which its proposal is developed in Attachments 4-A and 4-B. Distribution is required for each option proposed upon, including refuse, recycling and green waste carts and can customers. March 13, 2012 25 City of Hermosa Beach 16. OPT-IN GREEN WASTE PROGRAM An opt-in green waste program must be offered to residents under both residential proposal options 1 and 2. Proposers are provided flexibility in designing the green waste programs, such as providing City-wide green waste collection on the same day of the week or other program elements that would enable cost effective collection. At a minimum, proposers should clearly describe containers to be used, any restrictions on program availability, estimated participation and tonnage impacts assumed by proposer. Under Option 1, the program is anticipated to include the provision of green waste carts under a volume-based rate structure (see example program language in Section 4.3.1 of the draft agreement and Attachment 3-B for cart rate proposal). Under Option 2, the program is anticipated to be included at no additional charge. Proposers may propose the type of collection containers. Indicate what, if any, options would be available for multi-family bin and commercial customers requesting green waste collection. 17. ADDITIONAL PROPOSAL REQUIREMENTS A. Performance Bond/Letter of Credit Proposers shall indicate the amount of the required $500,000 surety to be provided through a performance bond and/or through a letter of credit. Proposers may provide this $500,000 in either format, or in any combination of these two instruments. B. Cart Distribution Proposer shall describe carts which it intends to use in the City, pending City approval. Include manufacturer and specific sizes. Color cart photos shall be provided if requested by the City. C. Bin Colors Proposer shall indicate the proposed colors for its refuse and recycling bins. D. Litter Box Rates for Non-City Events Proposers are asked to provide a rate for litter boxes and liners to be provided to non-City sponsored event planners. (Litter boxes are to be provided at no additional charge for City- sponsored and other select events.) See Section 4.5.7. 18. PROPOSAL ENHANCEMENTS Provided that the proposer has submitted a proposal that meets all of the minimum requirements of this RFP, the proposer may also offer additional enhancements that exceed the requirements of this RFP and the franchise agreement, such as recyclable revenue sharing March 13, 2012 26 City of Hermosa Beach or residential recycling incentives. Any such enhancements shall be listed by number under this section in the RFP. March 13, 2012 - 27- City of Hermosa Beach SECTION VI - PROPOSAL EVALUATIONS The proposal will be objectively evaluated based on criteria that may include, but is not limited to, the following factors. PROPOSER’S QUALIFICATIONS  General Experience – Demonstrated experience providing similar services to other jurisdictions (including those with similar service constraints), and experience of key personnel.  Jurisdiction Satisfaction – Satisfaction of proposer references with services received, including but not limited to, implementation, customer services, reporting, and working cooperatively with City staff. Customer service is of utmost importance to the City.  Environmental Protection – Ability to reduce impacts to the environment and human health (e.g., air and water quality protection, litter reduction, etc.). TECHNICAL QUALIFICATIONS  Waste Diversion – Ability to maximize waste diversion.  Implementation Plan – Reasonableness of implementation plan and schedule; ability to meet deadlines (i.e., equipment procurement schedules and personnel available); ability and resources to manage a service transition.  Operations – Reasonableness of assumptions (e.g., number of routes). EXCEPTIONS TO THE TERMS AND CONDITIONS  Exceptions to the RFP and draft franchise agreement – Number and nature of the exceptions. FINANCIAL RESOURCES  Financial Stability – Comparison of additional revenue from this franchise to company’s current revenue stream, financial stability of proposer based on its financial ratios.  Insurance - Demonstrated ability of proposer to obtain adequate insurance. COSTS  Cost of service, as measured by rate revenues - Cost competitiveness relative to other proposals.  Reasonableness of costs - Logically consistent relationship between costs and operational assumptions. March 13, 2012 28 City of Hermosa Beach AWARD To be considered, proposals must be complete and must conform to the requirements of this RFP as to form, content and timely submittal. The franchise will be awarded to the proposer that the City Council determines will best assist the City to reach its goal of receiving the highest quality service at the lowest reasonable cost. The successful proposal may or may not be the lowest cost proposal. The City, however, reserves the right to reject any or all proposals, to accept or reject any one or more items of a proposal, or to waive any minor irregularities or informalities in the proposal. It is anticipated that all services will be purchased. However, the City reserves the right to change such service descriptions prior to award. March 13, 2012 City of Hermosa Beach Attachment 1 Proposal Outline The following is an outline that proposers shall follow when completing their proposals. Under each section, proposer must include all information as outlined below, including all subheadings and subsections as identified in Section V. All information outlined in Section V is required to be addressed. 1) General Requirements a) Title page b) Transmittal letter c) Table of contents d) Anti-Collusion Affidavit (Attachment 5) e) Signature page from addenda 2) Rate Proposal Forms (Attachment 3) 3) Supporting Cost and Operating Data Worksheets (Attachment 4) 4) Exceptions to Terms of Franchise Agreement and Agreement Signature Page 5) Proposer Overview a) Business Structure b) Description of Proposer’s Experience c) Information Regarding Past and Pending Litigation d) Key personnel e) Financial information f) Insurance 6) Facility Descriptions Required In Proposal a) Transfer facilities b) Processing facilities c) Operating facilities d) Disposal facilities 7) Rate Adjustment Terms/Disposal Component 8) Implementation plan 9) Collection Vehicle Description 10) Diversion Goal and Additional Diversion Programs 11) Optional HHW Program 12) Optional Food Waste Programs 13) Public Education 14) Downtown Commercial Collection Challenges 15) Cart Distribution 16) Opt-In Green Waste Program 17) Additional Proposal Requirements 18) Proposal Enhancements Page Contents 2-A Residential Cart - Rates and Service Levels 2-B Refuse Bin and Commercial Cart/Can - Rates and Service Levels 2-C Recycling Bin - Rates and Service Levels 2-D Extra Bin Pickup and Commercial Bulky Items - Rates and Service Levels 2-E Commercial Special Service - Rates and Service Levels 2-F Roll-Off Box and Temporary Bin Service - Rates and Service Levels 2-G Tonnage (CY 2010) 2-H Tonnage (CY 2011, Quarter 1) 2-I Routes and Route Hours 2-J Rate Revenue and City Fees (CY 2010) 2-K City of Hermosa Beach Facilities 2-L City-Sponsored Events 2-M Hermosa Beach Zoning Map 2-N Map of Narrow Streets and Alleys 2-O Porter Service Staff Report 2-P Lot A/Porter Service Customers ATTACHMENT 2 EXISTING SERVICE DATA Table of Contents ATTACHMENT 2 3/13/2012 2-A City of Hermosa Beach Row Residential Refuse and Recycling Services 1 Standard Monthly Rate (1)11.57$ per dwelling per month 6,621 dwelling units 2 Wheel-Out Service 4.00$ per dwelling per month 39 dwelling units 3 Wheel-Out Service for Disabled -$ per dwelling per month 26 dwelling units Row Other Services 4 Bulky Item Pick-Ups at No Charge (2)-$ 820 pick-ups 5 Bulky Item Pick-Ups at Charge (3)40.50$ per pick-up 7 pick-ups 6 Additional charge for freon items (4)13.89$ per pick-up N/A (1) Rate inclusive of $0.25/month AB 939 fee. (2) Once per year, up to 3 cubic yards per pick-up. (3) More than once per year, or more than 3 cubic yards per pick-up. (4) This charge is in addition to the standard bulky item pick-up charge, if applicable. Rate Number of pick-ups for the year ended 12/31/2010 Residential Cart - Rates and Service Levels As Of April 2011 Rate Count - Dwelling Units ATTACHMENT 2 3/13/2012 2-B City of Hermosa Beach 1 Can - 32 Gallon - 2 Cart - 32 Gallon 5 - - - - - - 5 3 Cart - 64 Gallon 15 2 - - - - - 17 4 Cart - 96 Gallon 22 - - - - - - 22 5 1 Cubic Yard 56 14 5 - - - 3 78 6 1.5 Cubic Yard 43 14 4 - - - 1 62 7 2 Cubic Yard 84 27 10 2 - - - 123 8 3 Cubic Yard 85 66 48 10 9 5 - 223 9 4 Cubic Yard 5 11 11 13 6 11 2 59 10 6 Cubic Yard 1 - - - 2 1 1 5 11 8 Cubic Yard - - 1 - - - - 1 1 Can - 32 Gallon 19.75$ 33.96$ 48.15$ 62.37$ 76.54$ 90.74$ 115.43$ 2 Cart - 32 Gallon 21.61$ 37.04$ 52.47$ 67.90$ 83.34$ 98.76$ 123.46$ 3 Cart - 64 Gallon 33.96$ 58.02$ 82.10$ 106.17$ 130.25$ 154.32$ 191.36$ 4 Cart - 96 Gallon 46.30$ 77.16$ 108.03$ 138.89$ 169.75$ 200.62$ 231.48$ 5 1 Cubic Yard 56.78$ 85.22$ 113.61$ 142.07$ 169.91$ 198.84$ 232.66$ 6 1.5 Cubic Yard 63.13$ 94.67$ 134.71$ 158.18$ 189.37$ 253.49$ 296.57$ 7 2 Cubic Yard 75.78$ 116.85$ 157.84$ 198.84$ 233.61$ 268.35$ 313.94$ 8 3 Cubic Yard 88.34$ 135.70$ 183.11$ 230.41$ 277.72$ 324.45$ 380.33$ 9 4 Cubic Yard 105.99$ 162.89$ 245.87$ 276.87$ 333.31$ 390.11$ 456.44$ 10 6 Cubic Yard 132.54$ 203.57$ 274.69$ 345.67$ 416.65$ 487.64$ 570.55$ 11 8 Cubic Yard 164.15$ 252.23$ 337.91$ 423.49$ 504.21$ 589.79$ 692.13$ (1) Service counts do not include free City services listed on Attachment 2-K. (2) Rates do not include the AB 939 fee. See Attachment 3-D for AB 939 fees. no commercial can service currently reported - this service will not be continued Refuse Container Type/Size Row Refuse Bin and Commercial Cart/Can - Rates and Service Levels As of Feburary 2012 Number of Collections per Week Number of Containers Serviced (1) Row Refuse Container Type/Size Number of Collections per Week Total Rates for the Services Provided (2) 7654321 1 765432 ATTACHMENT 2 3/13/2012 2-C City of Hermosa Beach 1 18-Gallon Cart 2 2 2 32-Gallon Cart 14 14 3 64-Gallon Cart 287 3 6 1 297 4 96-Gallon Cart 200 30 8 6 244 5 1 Cubic Yard 6 2 8 6 1.5 Cubic Yard 1 1 7 2 Cubic Yard 5 4 9 8 3 Cubic Yard 4 2 3 9 9 4 Cubic Yard 4 1 5 10 18-Gallon Cart 6.95$ 11.93$ 16.91$ 21.91$ 26.89$ 31.88$ 40.56$ 11 32-Gallon Cart 16.21$ 27.78$ 39.36$ 50.93$ 62.51$ 74.08$ 92.61$ 12 64-Gallon Cart 25.46$ 43.52$ 61.57$ 79.64$ 97.69$ 115.75$ 143.53$ 13 96-Gallon Cart 34.72$ 57.86$ 81.00$ 104.14$ 127.29$ 150.43$ 173.57$ 14 1 Cubic Yard 42.58$ 63.92$ 85.22$ 106.56$ 127.43$ 149.13$ 174.50$ 15 1.5 Cubic Yard 47.33$ 71.01$ 101.02$ 118.64$ 142.03$ 190.12$ 222.43$ 16 2 Cubic Yard 56.85$ 87.64$ 118.38$ 149.13$ 175.22$ 201.28$ 235.48$ 17 3 Cubic Yard 66.24$ 101.76$ 137.33$ 172.81$ 208.29$ 243.33$ 285.22$ 18 4 Cubic Yard 79.49$ 122.14$ 184.38$ 207.65$ 249.99$ 292.58$ 342.33$ Number of Collections per Week Total Rates for Services Provided Row Container Size Number of Collections per Week 321 7 Recycling Bin - Rates and Service Levels As of February 2012 Maximum recycling rates are set at 75% of comparable refuse service rates. Under the new agreement maximum recycling rates shall be no more than 50% of comparable refuse rates. Number of Containers Serviced Row Container Size 7654 654321 ATTACHMENT 2 3/13/2012 2-D City of Hermosa Beach Row Service Rate Count per year ended 12/31/2010 Extra Container Pick-Up: 1 Extra pick-up: 1 Cubic Yard - Refuse 40.50$ 21 2 Extra pick-up: 1.5 Cubic Yard - Refuse 40.50$ 17 3 Extra pick-up: 2 Cubic Yard - Refuse 40.50$ 19 4 Extra pick-up: 3 Cubic Yard - Refuse 52.07$ 35 5 Extra pick-up: 4 Cubic Yard - Refuse 52.07$ 26 6 Extra pick-up: 6 Cubic Yard - Refuse 52.07$ 4 7 Extra pick-up: 8 Cubic Yard - Refuse 61.78$ 3 Commercial Bulky Item Pick-up: 8 Bulky Item Pick-Up: 1-2 items 27.31$ 91 9 Bulky Item Pick-Up: 3-5 items 54.61$ 22 10 Bulky Item Pick-Up: 6-10 items 109.21$ 7 11 Bulky Item Pick-Up: Each additional item 27.31$ 0 Extra Bin Pickup and Commercial Bulky Items - Rates and Service Levels ATTACHMENT 2 3/13/2012 2-E City of Hermosa Beach 1 Scout Truck 34 31 32 11 4 2 3 2 Push-Out Service (per 50 feet) (1)64 31 6 5 3 3 - 3 Locking Bin 23 8 5 3 - - - 1 Scout Truck 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 2 Push-Out Service (per 50 feet) (1)11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 3 Locking Bin 5.79$ 5.79$ 5.79$ 5.79$ 5.79$ 5.79$ 5.79$ (1) Not applicable for push-outs less than ten feet. Fee may be charged once for 10 to 50 feet, twice for 51 to 100 feet, etc. Number of collections per week 7654 Special Service Rates 21 Row Service Number of collections per week Commercial Special Services - Rates and Service Levels As of February 2012 Number of Bin Services with Special Services Row Service 3 7654213 ATTACHMENT 2 3/13/2012 2-F City of Hermosa Beach Row Container/Service Type AB 939 Fee 1 Roll-off Box Pulls: 2 Standard Roll-off Box 168.50$ per pull 23 pulls 3 Temporary Roll-off Box 168.50$ per pull 26 pulls 4 Compactor Roll-off Box (30 cubic yard)336.99$ per pull 12 pulls 5 City Roll-off Box Pulls -$ per pull 206 pulls 6 COD Roll-off Pulls - Disposal included (up to 7 tons) 420.16$ per pull 49 pulls 7 Total Pulls 316 pulls 8 Roll-off Box Tons 9 Dump Fee 35.95$ per ton 205 tons 10 Dump Fee, Compactor 48.00$ per ton 75 tons 11 Dump Fee - City Pulls -$ per ton 860 tons 12 Dump Fee - included in COD/disposal inclusive pulls -$ per ton 205 tons 13 Total Tons 1,345 tons 14 Temporary Bin, 3 cubic yard 80.99$ per pull 51 pulls Roll-Off Box and Temporary Bin Service - Rates and Service Levels FY 2011 Contractor Rate # of Services Provided 12- Months Ended 12/31/2010 ATTACHMENT 2 3/13/2012 2-G City of Hermosa Beach January 488.89 17.01 23.57 - 104.47 633.94 128.04 February 453.21 21.47 5.80 - 131.91 612.39 137.71 March 555.58 24.23 - - 148.87 728.68 148.87 April 523.17 20.72 - - 127.29 671.18 127.29 May 477.40 22.50 - - 138.18 638.08 138.18 June 552.48 28.88 - - 177.43 758.79 177.43 July 545.52 30.25 - - 185.83 761.60 185.83 August 556.47 26.06 - - 160.09 742.62 160.09 September 532.00 27.17 - - 166.87 726.04 166.87 October 469.21 23.03 12.98 - 141.47 646.69 154.45 November 516.62 30.41 - 7.96 186.78 741.77 194.74 December 535.09 30.67 - - 188.40 754.16 188.40 Total 6,205.64 302.40 42.35 7.96 1,857.59 8,415.94 1,907.90 January 195.49 25.77 143.25 364.51 169.02 January 64.87 5.53 - - 70.40 5.53 February 398.58 29.74 143.25 571.57 172.99 February 66.95 - 7.64 5.84 80.43 13.48 March 617.77 39.87 - 657.64 39.87 March 102.96 0.77 19.21 - 122.94 19.98 April 285.28 39.27 287.00 611.55 326.27 April 81.90 4.68 2.30 - 88.88 6.98 May 391.01 38.22 143.25 572.48 181.47 May 114.47 - 14.42 - 128.89 14.42 June 311.48 48.43 287.00 646.91 335.43 June 112.56 - 25.53 - 138.09 25.53 July 292.35 47.78 300.00 640.13 347.78 July 95.72 4.90 19.94 - 120.56 24.84 August 174.24 40.90 415.25 630.39 456.15 August 106.68 15.08 26.39 - 148.15 41.47 September 554.48 39.38 - 593.86 39.38 September 101.43 - 20.18 - 121.61 20.18 October 552.25 36.37 - 588.62 36.37 October 95.44 2.59 31.39 - 129.42 33.98 November 544.28 44.67 - 588.95 44.67 November 83.53 3.97 19.43 1.85 108.78 25.25 December 561.56 57.73 - 619.29 57.73 December 74.96 - 12.31 - 87.27 12.31 Total 4,878.77 488.13 1,719.00 7,085.90 2,207.13 Total 1,101.47 37.52 198.74 7.69 1,345.42 243.95 Collected Diverted Diversion % Residential 8,415.94 1,907.90 23% Commercial 7,085.90 2,207.13 31% Industrial 1,345.42 243.95 18% Total 16,847.26 4,358.98 26% C&D Commercial Industrial Refuse Container Source- Separated OtherHoliday TreesRecycling Residue Refuse Container Transformation Summary Green WasteRefuseMonth Recycling Total Tonnage Month RefuseMonth Recycling Residential Tonnage (CY 2010) Recycling Container - Diverted Total Tonnage Diverted Total Tonnage Diverted Total Tonnage Collected Total Tonnage Diverted Total Tonnage Collected Other Green Waste ATTACHMENT 2 3/13/2012 2-H City of Hermosa Beach January 508.11 21.51 20.22 1.50 142.69 694.03 164.41 February 447.64 17.11 - - 141.43 606.18 141.43 March 577.64 18.46 - - 188.80 784.90 188.80 April 504.62 In refuse tonnage 6.28 137.45 648.35 143.73 May 592.24 In refuse tonnage 10.00 131.74 733.98 141.74 June 600.72 In refuse tonnage - 147.72 748.44 147.72 July 517.90 In refuse tonnage - 128.54 646.44 128.54 August 566.93 In refuse tonnage 23.15 134.09 724.17 157.24 September 488.31 In refuse tonnage 2.54 148.70 639.55 151.24 October 470.78 In refuse tonnage 9.70 118.51 598.99 128.21 November 503.75 In refuse tonnage - 137.19 640.94 137.19 December 455.95 In refuse tonnage - 156.46 612.41 156.46 Total 6,234.59 57.08 20.22 53.17 1,713.32 8,078.38 1,786.71 January 569.06 38.19 - 38.19 607.25 38.19 January 75.89 9.73 5.07 - 5.07 90.69 February 507.41 34.98 - 34.98 542.39 34.98 February 95.58 4.29 41.49 6.68 48.17 148.04 March 439.53 43.08 150.00 193.08 632.61 193.08 March 96.17 3.55 30.38 8.26 38.64 138.36 April 349.31 232.45 581.76 232.45 April 70.34 - 54.34 124.68 May 354.20 233.73 587.93 233.73 May 85.68 - 23.86 109.54 June 383.76 289.19 672.95 289.19 June 122.35 6.70 42.48 171.53 July 325.72 281.86 607.58 281.86 July 117.24 5.47 37.39 160.10 August 340.95 282.54 623.49 282.54 August 105.51 7.79 9.98 123.28 September 454.63 135.82 590.45 135.82 September 104.33 12.76 44.10 161.19 October 211.84 381.89 593.73 381.89 October 77.71 4.59 53.84 136.14 November 555.87 35.17 591.04 35.17 November 78.68 9.41 36.00 124.09 December 570.23 40.47 610.70 40.47 December 86.05 11.72 50.20 147.97 Total 5,062.51 2,179.37 7,241.88 2,179.37 Total 1,115.53 76.01 444.07 1,635.61 Collected Diverted Diversion % Residential 8,078.38 1,786.71 22% Commercial 7,241.88 2,179.37 30% Industrial 1,635.61 520.08 32% Total 16,955.87 4,486.16 26% Total Tonnage CollectedSource-Separated Transformation C&D OtherTotal Total Summary Month Refuse Green Waste Holiday Trees Other Commercial Industrial Month Refuse Total Tonnage Collected Total Tonnage Diverted Recycling Recycling Tonnage (CY 2011) Residential Refuse Container Green Waste Total Tonnage Month Recycling Container - Diverted Total Tonnage DivertedRefuse Container Recycling Residue ATTACHMENT 2 3/13/2012 2-I City of Hermosa Beach 1 Residential Refuse 3.0 3.0 3.0 3.0 3.0 - - 15 5.75 86 1 2 Residential Recycling 3.0 3.0 3.0 3.0 3.0 - - 15 5.75 86 1 3 Bin Refuse 2.0 2.0 2.0 2.0 2.0 - - 10 11.00 110 1 4 Bin Recycling 1.0 1.0 1.0 1.0 1.0 - - 5 7.00 35 1 5 Roll-off Route 1.0 1.0 1.0 1.0 1.0 1.0 - 6 4.00 24 1 6 Scout Service 1.0 1.0 1.0 1.0 1.0 1.0 - 6 3.00 18 1 7 Bulky Item Truck 3.0 3.0 3.0 3.0 3.0 - - 15.0 2.00 30 1 8 Total 14.0 14.0 14.0 14.0 14.0 2.0 - 72 390 Total Route Days Per WeekMondaySundaySaturdayFridayThursdayWednesdayTuesday Crew Size Routes and Route Hours As of April 2011 Hours per Route per Day Total Route Hours Per Week Row Route / Service Type # of Truck Routes ATTACHMENT 2 3/13/2012 2-J City of Hermosa Beach January 96,250$ 9,625$ 1,329$ 67,820$ 6,782$ 3,276$ 164,070$ 16,407$ 4,605$ February 87,850$ 8,785$ 1,326$ 90,900$ 9,090$ 3,231$ 178,750$ 17,875$ 4,557$ March 96,130$ 9,613$ 1,326$ 67,550$ 6,755$ 3,263$ 163,680$ 16,368$ 4,589$ April 92,830$ 9,283$ 1,330$ 66,250$ 6,625$ 3,200$ 159,080$ 15,908$ 4,530$ May 95,590$ 9,559$ 1,331$ 67,610$ 6,761$ 3,265$ 163,200$ 16,320$ 4,596$ June 92,730$ 9,273$ 1,333$ 68,630$ 6,863$ 3,315$ 161,360$ 16,136$ 4,648$ July 94,120$ 9,412$ 1,334$ 68,490$ 6,849$ 3,308$ 162,610$ 16,261$ 4,642$ August 94,310$ 9,431$ 1,338$ 68,160$ 6,816$ 3,292$ 162,470$ 16,247$ 4,630$ September 91,980$ 9,198$ 1,336$ 68,460$ 6,846$ 3,307$ 160,440$ 16,044$ 4,643$ October 94,150$ 9,415$ 1,336$ 68,470$ 6,847$ 3,307$ 162,620$ 16,262$ 4,643$ November 92,160$ 9,216$ 1,336$ 68,470$ 6,847$ 3,307$ 160,630$ 16,063$ 4,643$ December 93,960$ 9,396$ 1,338$ 68,440$ 6,844$ 3,306$ 162,400$ 16,240$ 4,644$ Annual Total 1,122,060$ 112,206$ 15,993$ 839,250$ 83,925$ 39,377$ 1,961,310$ 196,131$ 55,370$ (1) Includes roll-off and temporary service revenue. TotalResidential Revenue includes fees. Collector fee is 10% of total revenue. AB 939 fees are $0.25 per home per month, and $0.25 per cubic yard of refuse collected. Rate Revenue and City Fees (CY 2010) Month AB 939 FeeCollector FeeRevenueAB 939 FeeCollector FeeRevenueAB 939 FeeCollector FeeRevenue Commercial (1) ATTACHMENT 2 3/13/2012 2-K City of Hermosa Beach Row Service Location/Address Service Type Container Size Container Count Frequency of Collection 1 City Hall / 1315 Valley Dr Refuse 3 cubic yard 1 3x week 2 City Hall / 1315 Valley Dr Recycling 65 gallon 6 6x week 3 City of Hermosa Beach / 1035 Valley Dr Refuse 4 cubic yard 1 2x week 4 City of Hermosa Beach / 1035 Valley Dr Recycling 3 cubic yard 1 2x week 5 City of Hermosa Beach / 1309 Hermosa Ave Refuse 3 cubic yard 1 5x week 6 City of Hermosa Beach / 861 Valley Dr. (1)Recycling 3 cubic yard 1 2x week 7 Hermosa Beach Fire Dept / Pier and Valley Recycling 95 gallon 2 1x week 8 Hermosa Beach School Dist / 1645 Valley Dr Recycling 3 cubic yard 2 3x week 9 Hermosa Beach School Dist / 1645 Valley Dr Refuse 3 cubic yard 2 5x week 10 Hermosa Beach School Dist / 1645 Valley Dr Refuse 4 cubic yard 1 5x week 11 Hermosa Beach School Dist / 1800 Prospect Refuse 4 cubic yard 1 3x week 12 Hermosa Beach School Dist / 1800 Prospect (2)Recycling 4 cubic yard 1 1x week 13 Hermosa Beach School Dist / 1800 Prospect Recycling 1 cubic yard 1 3x week 14 Maintenance Dept / 710 Pier Ave Refuse 3 cubic yard 2 3x week 15 Maintenance Dept / 710 Pier Ave Recycling 65 gallon 2 1x week 16 Maintenance Dept / 710 Pier Ave Refuse 40 cubic yard 2 On Call (1) In 2010, there were also 5 green waste roll-off box loads collected from this City location. (2) In 2010, there were also 2 green waste roll-off box loads collected from this school location. City of Hermosa Beach Facilities The following is the current estimate of services provided at no cost at City facilities. Service levels may vary over the term of the agreement. These services are not included in the Attachment 2-B and 2-C service levels. ATTACHMENT 2 3/13/2012 2-L City of Hermosa Beach Count of boxes Count of liners 1 New Year's Eve Not a specific event. Contractor to provide litter and recycling boxes in public areas due to increased pedestrian activity. 1 25 50 2 California Coastal Cleanup City event. Contractor to provide litter and recycling boxes.1 25 50 3 Sunset Concert #1 City event. Contractor to provide litter and recycling boxes.1 25 50 4 Sunset Concert #2 City event. Contractor to provide litter and recycling boxes.1 25 50 5 Sunset Concert #3 City event. Contractor to provide litter and recycling boxes.1 25 50 6 Sunset Concert #4 City event. Contractor to provide litter and recycling boxes.1 25 50 7 Art Walk Sponsored by non-profit. Small quantity of waste. Contractor to provide litter and recycling boxes. 2 10 20 8 St. Patrick's Parade Large City event. Contractor to provide litter and recycling boxes.1 20 40 9 Surfer's Walk of Fame/Spyder City event. 100 to 150 people. Litter and recycling boxes to be provided.1 20 40 10 Little League Opening League to provide litter and recycling boxes. 1 20 40 11 Little League Night in Ballpark League to provide litter and recycling boxes. 2 10 20 12 Fiesta (Spring)Chamber of Commerce event. Chamber purchases boxes and liners.3 50 100 13 Fiesta (Fall)Chamber of Commerce event. Chamber purchases boxes and liners.3 50 100 14 Snowfest Private promoter. Promoter will be responsible for litter and recycling boxes. 40 80 15 USAV Beach Volleyball (AVP) Private promoter. Promoter will be responsible for litter boxes and for refuse removal, by bin or otherwise. 3 40 80 16 HB 5000 - 5K Race Private promoter. 200 to 300 people. Promoter will be responsible for litter boxes and for refuse removal, by bin or otherwise. 1 15 30 17 HB Day at the Beach Triathlon Private promoter. Promoter will be responsible for litter boxes and for refuse removal, by bin or otherwise. 1 20 40 Estimate of Litter Box Requirements Services as Required Under New Agreement City-Sponsored Events Row Event Name Event Duration (days) Below is a list of special events for which the current contractor has been providing litter boxes, and for which waste has been placed in park bins or taken by City crews to the yard for disposal by the current contractor at no additional charge. The exception is that the Chamber of Commerce already pays for litter boxes and liners at its Fiesta events. Under the new agreement, the City will be transitioning event promoters to paying directly for services. Contractor shall be required to provide litter and recycling containers to the specified events below (events 1 through 9) at no additional charge. Solid Waste from events shall continue to be placed in containers serviced by the contractor at no addtional charge unless otherwise noted (events 1 through 14). Litter boxes and liners are only an estimate. If the City sponsors additional events in the future, contractor shall be responsible for servicing those events at no additional charge as well. North School Valley School Hermosa View School Community Center ClarkStadium CivicCenter South Park ValleyPark BeachBeach2 0 0 2 0 2 3 0 5 5 3 3 2 2 5 5 5 2 2 2 3 3 2 0 4 5 5 3 5 3 5 2 2 5 0 0 3 0 5 5 5 5 3 50 5 5 2 2 2 3 5 3 5 5 3 5 10 5 5 2 3 2 3 5 3 5 5 5 10 10 2 10 10 0 2 10 5 5 2 5 0 3 10 10 310 522 233 556 222 0 3 10 10 1010 2 2 15 3 10 4 5 5 5 03 3 2 10 10 10 OS OS OS OS OS OS OS OS OS OS R-3 OS-1 OS OS C-3 OS OS OS R-3 RPD OS-1 OS C-3 R-3 R-3 OS OS-1 R-3 OS-1 R-2 RPDRPDRPDRPDRPDRPD RPDRPDRPDRPDRPDRPD RPDRPDRPD RPD RPDRPDRPDRPDRPD RPD RPDRPDRPD RPDRPDRPD RPDRPDRPDRPDRPDRPD RPDRPD RPD RPD MHP C-3C-3C-3 C-3C-3C-3 C-3C-3C-3 C-3C-3C-3 C-3C-3C-3 C-3 C-3 C-3C-3 C-3 C-3C-3 C-3 C-3C-3 C-3 C-3 C-3C-3C-3 C-3C-3 C-3 M-1 MHP C-3 R-3R-3R-3 R-3R-3R-3 R-3R-3R-3 R-3R-3R-3 R-3R-3R-3 R-3 R-3R-3 R-3R-3 R-3R-3 R-3 R-3R-3 R-3R-3R-3 R-3 R-3 R-3 R-3 R-3R-3R-3 SPA-8 OS R-3 R-3R-3R-3 R-3R-3R-3 R-3 R-3 R-3 R-3R-3 R-3R-3 R-3 R-3R-3 R-3 R-3 R-3R-3 R-3R-3 R-3 R-3R-3 R-3R-3R-3 R-3 R-3 R-3R-3 R-3 R-3R-3 R-2 R-1 SPA-8 OS C-3 C-3 R-3R-3R-3 R-3R-3R-3 R-3R-3R-3 R-3R-3R-3 R-3R-3R-3 R-3 R-3R-3 R-3 R-3R-3R-3 R-3 R-3 R-3 R-3R-3 R-3 R-3R-3 R-3 R-3 R-3 R-3R-3R-3 R-3R-3R-3 R-3R-3R-3 R-3R-3R-3 R-3R-3R-3 R-3 R-3R-3R-3R-3 R-3R-3 R-3 R-3R-3 R-3 R-3 R-3 R-3 R-3 OS OS OS-1 R-2 R-3R-3R-3R-3 R-3R-3R-3 R-3R-3R-3 R-3R-3R-3 R-3R-3R-3 R-3R-3 R-3 R-3R-3 R-3 R-3 R-3R-3 R-3R-3R-3 R-3 R-3 R-3 R-3 R-3 R-3 R-3 R-3 R-3R-3 C-3 SPA-8 M-1 M-1 OS-1 C-2 R-2R-2 R-2R-2 R-2R-2 R-2R-2 C-3 C-3 RPD C-3 C-3 C-3 SPA-7 C-3 SPA-7 OS-2 OS SPA-7 C-3 SPA-8 SPA-6 OS R-1 C-2 R-1 C-3 R-1 C-3 C-3 OS R-2R-2R-2R-2 R-2R-2 R-2R-2 R-2R-2 R-2R-2 OS SPA-7 C-3 R-1 R-2R-2 R-2R-2 R-2R-2R-2 R-2R-2 R-1 C-3 R-1 R-3PD R-3PD R-3PD R-3PD R-1 R-1 OS OS C-3 C-2 R-1 R-PR-P R-PR-P R-PR-P R-PR-P R-PR-P R-P R-PR-PR-P OS-1 SPA-8 R-3 R-2 R-3 R-1 SPA-6 R-1 OS-1 R-1 OS-1 C-3 C-3 OS SPA-8 C-2 R-1 R-1 C-2C-2C-2 C-2 C-2C-2 C-2 C-2C-2 R-1 R-2R-2R-2R-2 R-2R-2 R-2R-2 R-2 C-3 OS R-1 R-1R-1 R-1R-1R-1 R-1 SPA-8SPA-8 SPA-8SPA-8 SPA-8SPA-8 SPA-8SPA-8 SPA-8 SPA-8 SPA-8SPA-8 SPA-8 R-1 C-3 R-3 R-1 R-1 R-1 R-1 R-1 R-1 SPA-3SPA-3 SPA-4 SPA-3SPA-3 SPA-3 SPA-3SPA-3 R-1 C-3 C-2C-2 C-2C-2 C-2C-2 C-2C-2 C-2C-2 C-2 C-2 C-2 C-2 C-2 R-2R-2 R-2R-2 R-2R-2 R-2R-2 R-1 C-2 C-3 OS OS OS OS M-1 SPA-7 SPA-4SPA-4SPA-4SPA-4 SPA-4SPA-4 SPA-4SPA-4 SPA-4 SPA-4 R-3 R-3R-3 R-3R-3 R-3R-3R-3R-3 R-3R-3 C-3 R-3R-3 R-3R-3 R-3R-3 R-3 R-3R-3 R-3 R-3R-3 R-3 R-2R-2 R-2R-2 R-2R-2 R-2 R-1 C-3 C-3 C-3 R-2R-2 R-2R-2 R-2R-2 R-2 R-P R-1 C-3 M-1 OS C-2 C-2 R-1 C-2 C-2 SPA-7 SPA-7 C-2 M-1 C-3 OSR-3R-3 R-3R-3 R-3R-3 R-3R-3R-1R-1 M-1R-2 SPA-11 R-3R-3 R-3R-3 R-3 R-1A OS R-1 R-1 M-1 R-1 R-1 R-3R-3 R-3 R-3R-3 R-3 R-3 R-1 R-2 R-1 R-3 R-1 C-3 R-3R-3 R-3R-3 R-3 R-3R-3 SPA-8 R-2R-2 R-2R-2 C-3 R-1 R-1 C-2 R-1 R-1 SPA-8 R-2 R-1 C-3 M-1 R-2B R-2B R-2BR-2B R-2B SPA-7 R-1 R-1 R-1 R-1 R-2 R-2R-2R-2 R-2R-2 R-2R-2 R-2 C-3 R-1 OS R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-3 R-3R-3 R-3 R-3R-3R-3 R-3 R-1 R-2R-2 R-2 R-2R-2 R-1 R-1 SPA-8 R-2R-2 R-2 R-2 R-2R-2 R-2R-2 R-1 R-1 SPA-11 SPA-7 R-3 C-2 R-1 R-3R-3R-3 R-3 R-3R-3R-3 R-3 C-2 C-2 R-1 R-1 R-1 R-1 R-1R-2BR-2B R-2BR-2B C-3 R-1 R-3 R-1 R-1 SPA-7 R-1 C-2 R-3 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 SPA-7 R-1 C-2 R-3 R-3 R-3 R-3 R-3R-3 R-3 R-3R-3R-3R-3 R-3R-3 R-3R-3R-3 R-3 R-3 R-3 R-3 R-3R-3 R-1 C-2 R-3R-3 R-3R-3 R-3R-3 R-3 C-2 C-2 R-3 R-3 R-1 C-2 R-3 R-3R-3 R-3R-3 R-3 C-3 C-3 R-2BR-2B R-2BR-2B R-2B R-1 R-1 R-1 R-1 R-1 C-3 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-2R-2 R-2 R-2 R-1 R-2 SPA-7 R-2B R-1 R-1 R-2 R-1 R-1 R-1 R-1 C-3 R-1 R-1 R-1 R-1 R-1 SPA-7 R-2R- 2 R-2R- 2 C-1 R-1 C-2 R-2B C-2 SPA-8 R-1 R-1 R-1 C-3R-3 R-1 R-1 R-1 C-1C-1C-1C-1 C-1C-1 R-1 R-1 R-1 R-1 R-1 R-1 M-1 R-1 R-1 R-1 R-1R-1R-1 C-2 R-1 R-2R-2R-2R-1 R-2R-1R-1R-1 R-1R-1C-3 R-2R-2R-2R-3R-1 R-1 R-1 R-1 R-1R-1C-3 SPA-8 SPA-7 SPA-7SPA-7SPA-7SPA-7SPA-7R-1 R-1 R-1 R-1 R-2 R-1 C-3 SPA-8 R-1 R-1 R-1R-2R-2R-2R-1 R-1R-3R-2R-2R-2R-2R-2R-2R-1 R-1 R-1 R-3R-3R-3 R-3 R-2BR-2B R-1 R-1 R-1 R-1 R-1R-1 R-1 R-1 R-1 R-1 R-1 R-2 R-1 C-3 R-2R-2R-2 R-2 R-1 R-3R-3R-3R-3 SPA-7 R-1 R-1 R-1 R-1 R-1 R-1 R-2B R-PR-1R-P R-1 R-P R-2BR-2B C-3 R-1 R-PR-PR-PR-PR-PR-PR-PR-PR-PR-PR-PR-PR-PR-PR-PR-P R-1 R-2B R-1 R-PR-P R-3 R-2B R-1 R-1R-PR-PR-PR-PR-P OS R-PR-PR-PR-PR-P SPA-7 R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1 R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-3R-3R-3 R-3R-1AR-1 C-3R-1R-1 R-3R-3 R-3R-3 R-2 R-1R-1R-2 R-1R-1R-1R-1 R-1 M-1R-1 R-1 R-2R-2R-2R- 1 R-1 R-1R- 1 R-1 R-2 R-2R-1R-3 R-3 R-1 R-3 R-3R-3 R-3 R-3 R-1 R-1 R-3 R-3 R-3 R-3R-3R-3 R-3 R-3R-1R-1 R-1R-1R-1R-1R-1R-3R-3R-3 R-3R-1R-1R-1R-1R-1R-1R-1R-1R-1 R-3 R-1 R-1 R-2R-2R-2R-1 R-1 R-1 R-3R-3 R-3 R-3 R-1 R-3 R-3 R-3 R-1 R-1 R - 1 R-2B R-2BR-2BR-2BR-2BR-2BR-2BR-2BR-1 R-2B R-1 R-1R-1 C-2 C-2 C-2 R-2B R-3 R-1 R-3R-3R-3 R-3 R-3 R-3R-3R-3 R-3 R-3 R-1 R-3 R-PR-PR-PR-PR-2R-1 R-1 R-1R-1R-1R-1R-2BR-1R-1R-1R-1R-1R-1R-2R-2R-2R-1R-1R-1 R-1 R-1 R-1 R-1 R- 1R-2C-2R-2R-3R-3R-3R-2R-2R-2R-2R-2R-3R-3R-3R-3C-3R-1 R-1 R-1R-1R-1 R-1 SPA-7R-1R-1 R-1 M-1 R-2 R-3 R-1 R-1R-1R-1R-3 R-3 R-3 R-1R-1R-1 R-2 SPA-8 R-1SPA-7 R-1 R-1R-1R-1 R-1 R-1 R-1R-1R-1 R-1 R-1R-1R-1R-2R-2R-3 R-1 R-1R-1R-1R-1R-3R-3 R-3 R-3R-1R-1AR-1R-1R-1AR-1AR-1R-1AR-1AR-1R-1 R-2 R-1R-1AR-1AR-1AR-1 R-1R-1 R-1 R-1 R-1AR-1R-1AR-3R-3R-3R-3R-1R-1 R-1 R-1 R-1 R-1R-1R-1R-2 R-2B R-2R-2R-2R-1R-2R-1R-1R-1R-2R-2R-2R-1R-2R-1R-2R-2R-2R-1 R-2R-2R-2 R-1R-1SPA-8 C-2R-1 R-1R-1R-1R-1R-3 R-1 R-1 R-1 R-1 R-3 R-1R-1AR-1AR-3R-3R-3 R-3 R-1 R-1 R-1R-2R-2 R-2 SPA-7R-1R-1R-1 R-1 R-1R-1R-2BR-1 R-1 C-1R-1AR-1 R-2R-1AR-1AR-1AR-1AR-2 R-1AR-1AR-1AR-1AR-1AR-1 SPA-11R-1AC-3R-1R-2 R-1 C-2R-1AR-1 R-1 R-1R-1AR-1R-1C-1 R-1 R-3R-3R-3 R-3 R-2BR-2R-2R-2R-1R-2 R-1 R-2BR-1S P A - 7 R-3 R-1 R-1A R-1R-1AR-1R-2R-2 R-2 R-2 R - 2 R-1SPA-7R-2BR-2BR-3 R - 1 R-1R-2R-2SPA-11 R-2B R-2B R-1 R-1 R-1 R-1 R-2B R- 1 R-1 R-3 R-1 R-1 R-2BR-2B R-2B R-2R-2C- 3 R-1 C- 3R-1R-3 R-1 R-3R-3R-1R-3 C- 3R-1R-3R-1R-1R-1R-1R-3R-3R-3R-1R-1R-3C-2R-1R-1R-1C-3 R-1 R-1R-1R-1R-1R-1R-2R-1R-3 R-3R-3R-3R- 1 R-3R-3 R-3 R-1R-1R-3R-3 R-3 R- 1 R-3 R - 1 R-1R-2 R-1R-2 R-1R-3 R-3R-3 R-3 R-1R-3 R-1R-1R-1R-1 R-1R-1R-1R-1R-3R-3R-3R-1R-1R-1R-1R-1 C- 3R-1R-1 R-1R-3R-1R-3R-1R-1 R-3 R-3R-3R-3 R-3R-3 R-3R-3 R-1R-1R-3R-3R-3R-1 R-3R-3R-3R-1R-1R-1R-1R-1R- 1 R-1R-1 R-1 R-1 R-1R-2 R-1R-1R-1R-1 R-3 R- 1 R- 1 R-1R-1R-1R- 1 R-1R-1R-1R-1R-1R-1 R-1 R-1 R-1R-1R-1R-1R-1 R-1 R-3 R-1R- 1 R- 1 R-1 R-1R-1R-1C- 3 R-1R-1R-1R- 1 R-1R- 1 R-1 R-1R-1R-1R-1R-1R-1 R-1 R-1R-1R-1R-1R-1R-1R- 1 R-1R-1R-1R-3 R-1R-1R-1R-1R-3R-3R-3R-1R-1R-1R-1 R-3 R-3R-3 R-3 R- 1 R-1 R-3 R-1R-1R-1R-1R-3R-3R-3R-1R-1R-3R-3R-3R-3 R-2 R-1R-1 R-1R-1 R- 1 SPA-11 R-1R-1R-1 R-2 R-1R-1 R-1 R-3R-3R-3R-1 R-2 R-2R-2 R-2 R-1 C-1 R-2 R-2R-2R-2R-1 R-1R-1 R-2BR-1R-1 R-2 C-3 R-2 R-2 SPA-7 C-1 R-1R-1 M-1 R-1R-1 R-2R-2R-1R-2R-1 R-2R-2 R-1 R-1R-2R-2BR-2BR-2R-2R-2R-1 R-2R-2R-2M-1 R-2R-2R-2 R-1 R-2R-2R-2R-1 R-2C-3R-2R-2R-2 R- 2R-1R- 1 R-1 C-3R-2BR-1R- 2 R-1 R-1R-1R-2 R-2BR-2BR-2BR-2 R-3 R-3 R-3 R-3R-3R-3R-2 C- 3 C-1 C-3 R-1 C-2 R-2 SPA-8 R-3R-3 R-3R-3 R-3R-1R-1 R-1 R-2R-2R-2 R-1 R-1R-1R-1 R-2BR-1R-1AR-1 R-1 R-1 R-1 R-1R-1 R-2 C-3 R-1 R-3 R-1 R-1R-1 R-2R-2 R-1 R-2R-2R-2R-2 C-2 SPA-8 R-2R-2R-2R-2R-2R-2R-2R-2R-1 R-2R-2R-2C-3R-1 R-2R-2R-2R-1 R-3 R-2R-2R-1 R- 2B R-1A R-2BR-2BR-1 R-1R-1 M-1 R-1R-1 R-1R-1 R-1 R-2R-2M-1 R-3 R-1 R-1 R-3 R-3 R-3 C-3 R-1 R-3R-3 R-3R-3 R-1R-1 R-2 R-2R-2 R-3R-3 R-3 R-2BR-2R-1R-1R - 2 R-1 R-1 R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2 R-1 R-3R-3 R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2SPA-11R-2R-2R-2R-2R-2R-2R-2R-2R-1R-2R-2R-1R-2 R-1 R-2R- 1 R-1 R-2R-2R-1 R-2 R-1 C-2 R-1 R-2R-2BR-2BR-3R-3 R-3 R-2BR-1R-1 R-2 R-1C-1 R-2B R-2 R-1 R-1R-1R-1 R-1 R-1R-1 R-1R-3R-2R-1R-1R-1R-1R-1 R-1R- 2 R-1R-1R-1 R-1R-3 R-1 R-1R-3 R-3 R-1 R-1R-1R-1R-1R-1R-1R-2BR-2B R-1 R-1 R- 1 R- 1 R-1 R-1R-1 SPA-8R-1R-1 R-2R-2 R-3R-3R-1R-1R-2BR-1R-1 R-1 SPA-11 R-1R-1 R-1R-1R-1 C-2 R-1 R-1R-3R-3 R-3 R-2 R-1R-1R-1 R-3R-3 R-3 R-1R-1 R-2B R-1 C-2 R-1 R-1R-1 R-1R-1R-1R-1R-1R-1R-1R-1 R-2R-2 R-1 R-1 R-1R-2R-2R-1R-1 C- 3 R-2R-2R-2 R-2 R-1R-2R-1R-2SPA-8 R-2R-2 R-1 R-2R-2R-2R-2R- 1 R-2R-2R-2R-2R-2R-2R-2R-2R-2 R-1R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-1R-2R-1R-2R-2R-2R-1R-2R-2R-2B R-2BR-2B R-1R-1R-2R-2R-2R-2R-2R-1R-2R-2R-2 R-2 R-2R-1R-2R-2R-2R-1R-2 R-3 R-3 R-1R-2B R-2BR-2B R-1 R-1R-1R-1R-1R-1R-1 R-3 R-2B R-3 R-1R-1R-2BR-1R-1R-1 SPA-11 R- 1 M-1 R-3 R-1R-2BR-3R-1R-2BR-3R- 2 R-3R-3 R-3 R-2 R-3 R-2 R-1 R-3R-3 R-3 R-3 R-3 R-3 M-1R-2 R-1R-1R-2 R-1 R- 1 R-1 R-1 R-1 R-2R-1 R-1R-1R-1R-1 R-1 R-1 R-1R-1R-1R-1R- 1 R- 1R-1 R-1 R-1 R-1R-2R-2 R-2R-2 R-2C-3R-1R-1R-3 R-2R-3 R-2 R-3 R- 1R-1R-2 R-1 R- 1 R-1 R- 1R- 1 R-1R-1 R-1 R-2 R-2R-2 R-2 R-2 R-1R-1R-3R-3 R-3 R-1 R-1 R-1 R-1 R-1 R-1 C-1R-1 R-1 C-2 R-1 R-1 R-1 R-3 R-1 SPA-7R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2 R-2 R-3R-3 R-3 R-1R-2R-2R-3R- 1 R-2R-1R-2R-1R-1R-1R-1R-1R-1 R-1 R-1R-1 R-1 R-1 R-1SPA-8 R-1 R-3 R-1R-1R-1R-1R-1 R- 1R-1R-1R-1R-1R-1 R-1 R-3R-3 R-3 R-1R-1 R-1 R-1R-1R-1R-1C-3R-1R-1R-1R-1 R-1 R-3R-3 R-1 OSR-1 R-2BR-1R- 1R-2BR-1C-2R-1R-1R-1R-2 R-3 R-1R-1R-2 R-3 R-1R-1 R - 1 R-3 R-1 R-1 R-3 R-2 R-3 R-1R-2BR-2BR-3R-3 R-3 R-1 R-3 R-3R-3 R-3 R-3 R-3 R-2BR-2BR-1R-2BR-2BR-1R-3R-3 R-3 R-1C-1 R-1R-2BR-2BR-2BR-2BR-2BR-2BR-2BC-2 R-1R-2BR-1R-1R-2BR-2B R-1 R-3 R-2BR-2BR-2BR-2BR-1 R-2BR-2BR-2BR-2BR-2BR-2BR-1R-1R-2BR-2BR-2BR-2BR-1R-2BR-2BR-1 R-3R-3 R-1R-1R-1R-1C-2 C-2 R-3R-3 R-1R-3 R-1R-3 C-2 R-1 R-3 R-3 R-3 R-3R-3 R-3 C-2 R-3 R-3 R-3 R-1R-3R-3 R-1R-3 R-1R-3 R-3 R-1 R-3 R-1R-3R-1R-1R-3 R-1R-1 R-1R-1R-3R-1R- 1 R-1R-1 R-3 R-2BR-2B R-3R-3 R-3 R-1 R-3 R-1R-3R-3 R-3 R-1R- 1 R-3R-3 R-3 R-1R-1R-2B R-3 R-3 R-3R-3 R-3 R-1R - 1 R-1R-1R-1R-1R-3 R-1R-2BR-3 R-3 R-3 R-3 R-3 R-3 R-1R-2BR-2BR-1R-1R-2BR-1 R-1 R-1 R-1R-1 R-1R-3 R-3 R-3 R-3 R-1 R-3 R-1 R-3 R-3 R-3 R-1R-1R-3 R-1R-2R-2 C-2 R- 1 R-1 R-3 R-3R-3 R-3 R-3R-3 R-3 C-2 R-3 R-3 R-1 R-3 R-3 R-3 R-1R-3 R-3 R-2 R-3 R-3 R-3R-3 R-3 R-3 R-1R-3 R-3 R-3 R-3 R-1 R-3 R-2R-2 R-3 R-3 R-1 R-3 R-3 R-3 R-3 R-3 R-3R-3 R-3 R-1R-3R-3 R-3 R-1R-3 R-1R-3 R-1C-2 R-1C-2 R-1R-1R-1R-1R-3 R-3 R-1 R-1 R-3R-3 R-1 R-1 R-3 R- 1 R-1R-2BR-2BR-2R-2BR-2BC-3 R-2BR-2BR-2 R-2 R-2BR-1R-2 R-2 R-1R-2BR-2BR-2B R-3R-3 R-3 R-2BR-2BR-2BR-2BR-2BR-2BR-2BR-1 R-2BR-2B R-1 R- 2 R-2 R-1 R-1R-1 R-1 R-1SPA-5R-2R-1R-2BR-1R-1SPA-5SPA-5 R-2BR-2B R-3R-3 R-1SPA-8C-3R- 2R- 2 R-1R-1 R-3 R-1 R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1 R-3 R-1 R-1R-1 SPA-2SPA-2C-3R-1 C- 3C-1 R-1R-2R-2R-2R-2 R-2 R-3 R-3R-1R-3R-1 R-2 C-1R-1R-1 R - 1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1R-1R-1 R-1 R-1 R-1 R-1 R-1 R-1R-2 R-1 R-1 R-3R-3 R-3R-3 R-1 R-1 R-1 R-1 R-2 R-1 R-1 R-1 R-1 R-3R-3R-1 R-1 R-1 R-1 R-1 SPA-11R-1R-1R-1 R-1 R-1 R-1R-1R-1 R-1 R-1R-1 R-1 R-1R-1R-1R-1R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1C-2R-1R-2 R-1 R-1R-1R-3R-1 R-1 R-1 R-3 R-1 R-1R-3R-3 SPA-7 R-1 R-P R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1 R-1 R-1R-1R-1 R-2 R-1R-1 R-PR-1R-P R-1R-1R-2 R-1 R-P R-1 R-P R-3R-P R-1R-2BR-1 R-1R-2BC-3R-2BR-2BR-PR-2BR-3R-2BR-1R-2 R-PR-2BR-2R-1R-1R-1R-2BR-2BR-1R-1R-1R-1R-P R-2R-1R-2BR-2BR-1R-1R-1R-2BR-2BR-2R-1R-2BR-2BR-2BR-2BR-2BR-1R-2BR-1R-1R-1C-3R-1 R-1R-1R-2R-1R-1R-1R-1R-1R-1R-2R-1R-1R-1R-1OSR-1R-1R-1R-2R-1 R-1 R-3 R-1SPA-11R-1R-1R-1R-1R-1R-2R-1R-1R-2 R - 2 B R-2R-1R-1C-3 R-1R-1R-1 R-3R-3R-3R-3R-2BR-2BR-2BR-2BR- 2 R-2BR-1R-1R-2BR-2BR-2BR-2BR-2R-2R-2R-2BR-1R-1 R - 1R-1R-1R-2BR-1R-2BR-2BR-2BR-1R-2BR-2BR-2BR-2R-2BR-2B R-1 R-1R-1R-2R-2 C-3R-1R-1 R-1 R-1 R-1 R-2R-2 R-1 R-2 R-1R-1R-1R- 2R-2 R-1R-1R-1 R-1R-1 R-3 OSR-1R-1R-1R-1R-1R-1C-2R-1R- 1 R-1R-1R-1R-1R-1R-1R-1R-1C-3R-1R-1R- 2 R-1R- 1 R-1R-3R-1 R-1 R-1 R - 1 R-1R-1R-1 R-1 R-1R-1 R-2 R-2 R-2 R-1R-1R-3 R-1R-1 R-3 R-1R-1R-1 R-3 R-1R-1 R-1R-1 R-2 R-1R-1R-1R-1R-1R-1R-1R-1R-1 R-2 R-3 R-2 R-2R-1R-1 R-1 R-1 R-1R-1R-1 R-1 R-1R-2 R-2R-1 R-1R-1R-1R-1R-1R-3 R-1 R-1R-1R-1R-1 R- 2 R-1R-1 R-1R-1R-1R-1R-2 R-2 R- 1 R-3 R-1R-1 R-1 R-1R-3 R-3 R- 2 R - 2 R-1 R-1 R-1 R-1 C - 1 R-1 R-1 R-1R- 2 B C-2 R-1 R-1 R-1R-1C-1 R-1 R-1R-2BR-2BR-2BR-1 R-2BR-2BR-2BR-1R-2BR-1 SPA-7R-1R-1C-3 R-1 R-1 R-1C-3R-1R-1R-1 R-3R-3 R-3 R-3 R-1R-1R-1R- 1 R-1 R-1R-1SPA-7 R-3R-1R-1R-1R-3 R-1R-1R-1R-1R-3 R-1SPA-7R- 1 R-1 R-1 R-1R-1R-3 R-1 R-1R-1R-3R-1 R-3 R-1 R-3 R-3R-3 SPA-11 R-3R-3 R-3 R-3R-1R-1R-1R-1SPA-7 R-3 R-3 R-3R-1R-1 R-1 R-2B R-1R-1R-2R-1M-1R-2BR-2BR-1 R-1 SPA-7 R-1 C- 3 C-2R - 2R-1R-1R-2 R-1R-1R-1SPA-2R-2BR-2BR-1R-1R-1R-1R-1R-1R-1R-2BR-1 R-2BR-2BR-2BR-1 R-2BR-2BR-2B R-3 R-1 R-2BR-2BR-2BR-1R-1R-2 R-1R-2BR-2BR-2BR-2B R-2 R-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-1R-2BR-1R-1 R-1 R-1R-1R-1R-2 R-1R-2BR-2BR-1 R-1 R-1 R-2 R-PR-PR-2R-2R-1 R-1 R-1SPA-2 R-1 R-1 R-1R-1R-1 R-2BR-2BR- 1 R-1R-2B R-1R-1R-1 R-1 R-3 R-3 R-3R-3 R-3 R-1 R-2 R-1 R-3R-1R-2R-1 R- 1 R-1 R-2 R-3 R-2 R-2 R-1R-1R-2BR-1 R-1 OSR-1 R-1 R-2 R-1R- 2 R-2 R-3R-2 R-2 R-2C- 1 R-2 R-3 R-3 R-3 R-3 R-3SPA-10 R-3 R-1 SPA-8 R-1 R- 1 R-1SPA-10R-1R-1R-2B R-1R- 2 B R- 2 B R-2BR-2BR-1R-1 R-2BR-2B R-2 R-1R- 1 R-2BR-3R-2R-1R-3 R-2BR-2B R-2R-1R-1R-3R-1 R-1 R-1R-1R- 1 R-P R-2B SPA-7R-3M-1 R-2BR-1R-1R-3 R-1 R-3 R-1 SPA-7 R-1R-1R-2BR-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-2R-1R-2 R-3R-1R-3R-3 R-1R-1R-1 R-2 C-3R-1R-1R-2R-1 R-1R-1R-1R-3 C-2R-2R-2R-1 C-3 R-1R-1R-3 R-1 R-1 R-1R-2 R-2 R-1 R-2 R-2 R-2 R-1 R-1 R-1R-2R-1R-2B R-1 R-1R-1R-2 R-2 R-2 R-3 R-2 R-2 R-3 R-2 SPA-7 R-2B R-1 R-1 R-1 R-3 SPA-7 R-3 R-3 R-3 R-2 R-3R-3 R-3 R-3 SPA-8R-1R-1 R-P R-3 R-2 R-PR-1SPA-8 R-3 R-1 R-2R-3R- 1 R- 1 R-1R-1R-3 R-1 R-3 R-3 R-1 R-2BR-2B R-3 R-2 R-1R-2 C-3R-1R-2R-1R-2 R-2 BR-1R-1 R-3R-3 R-2BR-2B R-2B R-3R-3 R-3 R-1 R-1 R-1R- 2B R-3R-2 R-1 R-2B R-3R-3 R-3 R-3R-3 R-3R-3R-2 R-1 R-1 R-2 R - 1 R-2 R-1 R-3R-3 R-3R-3 R-3 R-1 R-1 R-1 R-3R-3C-1R-1 R-3 R-3 R-1 R-3R-3 R-1 R-1 R-2B R-2 R-1 R-2B R-2B R-1R-P R-2BR-2B R-2BR-2B R-2BR-2B R-1 R-2B R-1 R-1 R-2 R-2B R-2BR-2R-2 R-3 R-2B C-3 R-1 R-1 R-1 R-1 R-3R-3 R-3 C-1 R-2 R-1 R-1C-2 R-2B R-2 R-1 R-3 R-2 SPA-8 R-3 SPA-11R-3R-3 R-1R-2 R-3 R-1 R-2 R-2 R-2 R-3R-1AR-1R-1R-1R-1R-1R-1R-1R-1 R-2 R-1R-1R-3R-1R-1 R-1 R- 1C-3C-1 R-2 R-1 R-1R-2B R-3R-2BSPA-2 R-3 R-3R-3 R-3 R-3 R-1 R-3 R-3 R-1 R-1R-3 R-3R-3R-2 R-3R-1R-2B R-3 C-3R-3 R-3 R-1 R-1 R-3 R-1R-3 R-2 R-2 R-1 R-3 R-2R-2 R-1 R-1 R-1 R-3 R-3R-3 R-3 R-1 R-1R-3 R-3R-3 C-2 R-1 R-3R-3 R-3 R-3 R-2 R-3 R-3 R-3 R-1 R-1R-1R-3 R-3 R-3 R-3 R-3R-3 R-2 R-3 R-3R-3 R-3 R-3 R-1R-1R-3 R-3 R-3R-3 R-3 R-3R-3 R-3R-1 R-1 R-1R-1 R-1 R-2 R-2 R-1R-2 R-1R-1R- 1 R-1 R-1R-2 R-1 R-3R-3 R-3 R-1R-1 R-1 R-3 R-3R-3 R-1R-2 R-2 R-1 R-3 R-1 R-1R-1 R-3 R-3 R-3R-3 R-3 R- 1 R-3 R-3 R-3R-3 R-1R-1R-1R-3 R-3R-3 R-1 R-3 R-3 R-3R-3 R-1R-1 R-1 R-1 R-3 R-1 R-3R-3 R-2 R-3 R-3 R-3 R-1 R-3 R-1 R-3 R-2 R-1 R-3R-3 R-1 R-3R-3 R-3R-3 R-3R-3 R-3R-3 R-3R-3 R-1 C-3 R-3 R-3 R-3R-1 R-3R-3 R-1 R-3R-3 R-2 R-1 R-3 R-2 R-1 R-3 R-3 R-3 R-3 R-3 R- 1 R-3R-3 R-3R-3 R-3 R-3R-3 R-3 R-3 C-3 R-2 R-1 R-3R-1R-1 R-3R-3 R-1 R-1R-1R-2 R-2 C-3 R-2 R-3R-3 R- 1 R-1 R-1 R-2B R-1 R-1 R-3 R-2 R-2R- 1 R-1 R-3 R-1 R-3 R-1 R-2BR-2B R - 1 R-2 R-3 R-2 R-1 R-2B R-3 R-1R-1 R-1 R - 2 R-2 SPA-7 R-1 C-3R-2 C - 3 R-2 R-1 SPA-2 R-1 R-1 R-1 R-1 R- 1 R-1 C-2 R-1 R-1R-3 R-1 R-1 R-1 R-1 C-2 R- 1 SPA-7R-3R-1 R-1 C-2 R-3R-3R-1R- 2 R-3 R-3 R-3R-3 R-3R-3 R-3 C-2R-3R-3 R-3 R-3 R-3 R-1 R-3R-3 R-1 R-3R-3 R-3 R-3R-3 R-3R-2 R-3 R-3R-3 R-3R-3 R-3R-3 R-3 R-3 R-3 C-3R-1R-3 R-1R-3 R-3 R-3R-3 R-3R-3 R-3 R-3 R-3 R-3R-3 R-2 R-3R-3 R-3 R-3R-3 R-3 R-3 R-3R-3 R-3 R-3R-3 C-1 R-3R-3R-3 R-1 R-3R-3C-2R-3 R-3 R-3R-3 R-1 R-1 R-3R-3 R-3R-3 R-3 R-1R-3 R-3R-1R-3R-1R-3 R-3 R-3R-3 R-1 R-1R-1 R-1 R-2C-1R-3R-3 R-2 R-1 R-2 R-1 R - 2B R-1 R-1 R-3C-1C-2R-3R-3R-3R-3 C-3R-2R-3R-3C-2C-2R-3C-2R- 1 C-3R-2R-3R-3C-2R-3C-2R-3C-2R-3R-3 R-1 R-3R-3R-3R-3R-3R-3R-3C-2C-2C-2R-3R-3R-3R-3C-2R-3R-2C-2R-3R-2C-2C-2C-2C-2C-2R-3C-2R-3R-3R-3C-2R-3R-3R-2C-2R-3R-3R-3R-2C-2C-2R-3R-2C-2R-3R-3C-2R-3C-2R-2C-2C-2R-3R-3C-2R-2R-3R-3R-2R-3R-3C-2R-2B R-3R-3C-2R-3R-3C-2R-2R-2R-3R-3C-2C-2R-2 R-2R-2 R-1 R-PR-PR-3R-3R-1 R-2 R-3R-3R-3C-2R-3C-2R- 2B R-3R-2R-3C-2R-3C-2R-1 R-3R-3 SPA-2 R-1 R-2 B R-3 R-1 R-1 R-2 R-3R-3 R- 1 R-1 R-1 M-1 M-1 R- 2 B R-1 R - 2B R-P R-1 M-1 R-1 R-2R-1R-1 M-1 M-1R-2 M-1 M-1R-2 R-2M-1R-1 R-1 SPA-7R- 1 R-3R-3 R-1 R-1 R-1 M-1R-2B C-3 R-1M-1 R-1M-1 R-3 R-1R-3 R-3 R-2 M-1 R - 2 R-3 R-2 R-1R-2 R-3 R-3 R-2 R-3 R-1R-3R-3 R-3 R-1R-1R-2B R-1 R-2 R-1 R-1R-2 R-1 R-2 R-2R-2 R-2R-2BR-2BR-1 R-3R-3 R-3 R-2R-2R-2 R-1R-3 R-3 R-3 R-3R-3 R-3R-3 R-3 R-3R-3 R-2R-3R-2B R-2B R-2 C-2R-1 R-2 R-1 C-2R-1R-1R-2BR-1 R-2BR-2 R-1 C- 2 R-1R-1 R-2R-2 R-1 R-3 R-2BR- 1 R-1 R-3R-3R-1C-2 R-1C-2 R-1 R-1 R-1R-1R- 1R-1 R-1 R-1 R-1R-3 R-1 R-1 R-2BSPA-7 R-1 R-1 R-1R-2 R-2 R-1R-3 R-1 R-1 R-1R-1 R-1 R- 1R- 1R-2 R-1 R-1R-1 C-2 R-1 R-2 R-1 R-1R-1R-1R-1R-1R-2 R-1R-1R-1R-1R-2 R-1 R-1 R-1R-1R-1 R-2 R-1R-1 R-1 R-1 R-1 R-1 C-2R-1 R-2 R-1R-1R-1 R-1R-1R-1 R-1 R-1 R-1 R-1 R-2BR-3R-3R-2BR-1R-PR-1 R-1 R-2 R-2 R-1 R-2BR-1R-1 C-3R-PR-PR-1R-2BR-1 R-PR-1 R-PR-PR-1R-1 R-1 R- 1 R-1 R-PR-P R-2 R-1 SPA-11R-2R-2BR-PR-PR-PR-PR-PR-2 R-PR-PR-PR-3 R-1R-2 R-2 R-1 R-1 R-1 R-1 R-1R-2 R-2 R-2 R-1 R-1C-3R-1R- 1 R-2 R-1 R-3R-3 R-1 R-3 R-1 R-1 R-1 R-1 R-1C-3R-1 C-3R-1SPA-7C-3R-1R-1 R-1 R-3 R-1 R-1 C-1R-2 R-1 R-2 R-1 R-1 R-3 R-2 R-1SPA-7 R-3R-2SPA-11R-2 R-3 R-1 M-1R- 2 R-1 R-3 R-3 R-2B R-2 R-2BR-2BR- 1 R-1 R-1 R - 1 R-1 R-2 R-1 R-1 R-2BR-2 R-3 R-3 R-1 R-1 R-3 R-1 R-1 SPA-7 C-1 R-1R-3 R-1 R-1 R-3R-2BR- 1 R-3 R-1R-2 R-1 R-2BR-2BR-1R-1 R-1 R-1 R-2 R-3 R-2BR-2BR-PR-3 R-1 R-2 R-3 R-1 R- 1 R-3 R-3 R-1 R-3 R-1 R-3 R-1R- 3 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-3 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-3 R-3R- 3 R-3 R-3 R-3 R-1 R-3 R-3 R-3 R-3 R-3 R-1 R-3 R-3 R-1 R-3 R-2BR-1 R-1 R-1 R-3 R-1 R-1 R-3 R-3R- 1 R-1 R-1 SPA-11R-3 R-3 R-1 R-1 R-1 R-1 R-1 R-3 R-1 R-1 R-1 R-1 R-1 R-1 R-1R- 3 R-1R-1R-2R-2 R-1 R-2C-3 R-1 R-2 C-1R- 1 R-1 R-1M-1 R-2R-2SPA-7 SPA-7R-2B SPA-7 R-3 M-1 R-2R-3 M-1 R-1R-1R-1R-1R-1R-2SPA-7R-1R-1R-1R-1R-1R-2R-3R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-2R-1R-2R-1R-2R-2R-1R- 1 R-2R-1R- 1 R-1 R-2 C-3R-1R-1C-3R-2 R-3R-2R- 1 R-2R-1 R-1 R-1R-1R-1R-2R-1R - 1 R-1R-1R-1R-1R-2R- 3 R-1R-1 R-3 R-1R-1R-1R-1R-1R-2R-1R-1C-3R-1 R-3 R-1R-2R-1R-1R-1R-1R-1C-3R-2R-1R-1R-1R- 1 A R-3 R-1R-1R-2R-3 R-1R-1R-1R-1R-1R-2R-1R-1 R-1R-1 SPA-7 R-1R-1R-1R-1R-1R-1R-3 R-1R-1R-1 R-1 R-3 R-1R-1R-1 R-3 R-3 R-1R-1R-1R-3 R-1R-1 R-1R-1R-1R-3 R-1R-1R-2R-2 R-1 R-1 R-1R-1R-1R- 1 R-3 R-3R-1R-1C-1C-1 R-2R-1R-1R-1R-1R-1C-3R-1R-3 R-1R-1R-2R-1R-1R-1C-3R-1R-1R-1R-1R-1 R-1 R-1R-1R-1C- 3 R-1R-1R-1R-3 R-1R-1R-1R-1R-1 R-1R-2 R-1R-1R-1 R-1R-1R-1R-1R-2R-3 R-1 R-1R - 1R-1 R-1R-2 R-1R-1 R-1R-1R-1R-1 R-1 R-1R-2R-3 R-1R-1 R-1R-2R-1R-3R-1C-2R-1R-1R-1 R-1 R-1R- 1 R-3 R-1R- 3 R-1R-1R-1R-3R-1R-1R-1R-1R-2B R-2 R-3R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-2 R-1R-1R-1R-1R-1 R-1 R-1R-1R-3 R-3R-1R-1R-1R-1R-2R-2R-1R-1R-1R-1R-3R-1R-3 R-1R- 1 R-3 R-3 C-3R-2BR-1R-1R-1R-1R-1R-1R-3 R-1 R-1C-2R-3 R-1R-3 R-3 R-1R-1R-1R-1R-2R-1R-3 R-1R-3 R-3 R-1R-1R-1R-3 R-3 R-1 R-3 R-1R-3 C- 3 R-2 R-1R-1R-3R-1R-1R-1R-1R-1R-1R-1R-1 R-1R-1R-1R-1R-2BR-1R-1R-1R-1R-1R-2BR- 2 R-1R-1 R-1R-1R-1 R-1R- 1 SPA-7 R-1R-1 R-1R-2R-1R-1 R-2 SPA-7 R-1R-1R-2R-1R-1R- 2 R-1 R-1 C-1R-2R- 2R-2R- 2 R- 2 R-1R-2R-1R-1 SPA-7R-2R-3R-3R-2R-1R-1R-2R- 2 R-2R- 2R- 2 R-3R-2BR-3 R-1R-1R- 2 R-3R-1R-3R- 3 R-2R- 3 R- 2 R-2R-1R- 1R-3R- 2 R-1R-3C-1 SPA-7R-2R- 3 R- 1R-3 R-1R- 2 R-2 R-2 R-2R-2R-1R-3R-1R-1 R-1 R- 2 R- 2R-2R-2R- 2 R-2R- 3R- 3 R-2R- 2 R- 2 SPA-7 R-1R-2R-2R-2R-3R-3R- 2 R-2 R-2R-3R- 3 R- 2 R-2R-2R-2R-3R- 3 R-2R-2R-2R-2R- 3 R-2 R-1R- 2R-2 R-2R-2R-2BR-1R-2R-2BR- 2 R- 2 R-2R-1R- 2 R-3R- 2R- 2 C- 1 R-1R-2R- 2 R-3R- 3 R-2 R- 2B R-2R- 2 R-3 R-1R-3R- 2 R-1 R-2R-2 R-1R- 3 R- 2 R-2 R-1 C-2 R-2R-3R- 1 R-1 R-1 R- 3 R-2R-3 R-PR- 2R-2 R-2 R-1 R-2 R-3R-1SPA-11SPA-7 R-PR-2R-2R- 2 R-2R-3R-2R-2R-2R- 2 R- 2 R-2R-2R- 2 R-2R- 2 R-2R-2R-3R- 2 R-3R- 2 R- 2 R- 2 R-2R-1R-2R- 3 R-2R-2R- 2 R-1R- 2 R- 2 R- 2 R-1R-2R-2R- 2 R-2R- 2 R-2R-2R- 2R- 3 R-2R- 3 R-2R-2R-2R- 3 R-3 C-1R- 2 R-3 C-1R-2R-2R- 2 R- 2 R- 2R-2R-2R-3R- 2 R- 1R- 2 R-1 R-2 R- 2 R-3 R-2R- 2 R-1R-2 R-2 R-2R-2R-1 R-3R- 2 R-3R-2R- 2 R-1R-2 C-1 R-3 R-2R- 1 R-3R-2R- 2 R-3R-2 R-3 R- 2 R-2R- 2 R-2R-2R- 2 R-3 R-3 R-2R- 2 R-2 R-2 R-2R-2R- 2 R- 1R- 2 R-2R- 1R-2 SPA-7R-2R-2R- 2 R-2R- 2 R-3R-2R- 2 R-2R-2 R-2 R-2 C-1R-2R-2R- 2R- 2 R-2R- 2 R- 2 R-2R-2R-2R-2R- 2 R-2 R-1R-3R-2R-2 R-3 R-2R-1 R-3 R-3R-2R- 2 R- 1R- 2 C-1R-2R-2 R-1 R-1 R-3 R-2 R-3 R-2 R-3R-2R-1 R-2 R-3R-2R-2R-1R-2 R-2 R-2 R-2 R-3R-2R- 2 R-3 R-2 R-3R-1R-2R-2R- 2 R- 1 R-2 R-3 R- 2 R- 3 R-2R-2 R-1R-2R-2R- 2 R-2R-2R- 2R-2R- 2 R-2R-1R- 2 R- 2R- 2 R- 2 R-2R- 2 R-2R- 2 R-2 R-2 R-2R-2R- 2 R-2 R-2 R-2R- 2 R-2R- 2 R-2 R-3R- 2R-2R- 2 R-3R-2 R-3 C-2 R-1R- 2 R- 2 R-2 R-3R- 2 R-3 R-3R-2 R-3R-3R-2 C-1 R-3 R-2 R-2 R-3 R-2 R-3R-3R- 1 R-1 R-2 R-3R- 1R- 2 R-3 R-1 R-1 R-2R- 2 R-2 R-3 R-2 R-3R-2R-2R-2 R-1 R-1R-2R-2 R-3 R-3R- 2 R-2R- 2 R-3 R-3 R-2R- 2 R-2 R-1R-2R-2R- 2 R-2 R-3 R-3 R-2 R-3 R-3 R-3 R-3 R-3 R-3 R-3 R-3 R-2 R-3 R-1R-2R-3 R-1 R-1 R-3 R-3 R-3 R-3 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-3 R-1 R-1 C-3R-1C-3R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1R-2 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 C-3 R-1 R-1 R-2 R-1 R-1 M-1 R-1R-2 R-2 M-1 M-1 R-1 R-1 R-3 R-1 R-2 R-2R-2C-3R-1 R-1 R-1 R-2 R-3 R-1 R-2B R-2BR-1R- 1 C-3R-1R-2 R-1R-2 R-1R-1 R-2 R-3 R-2 C-3 R-1 R-3 R-3 R-3 R-2 R-2 R-1 R-3 R-3 R-3 R-1R-1 R-3 R-3 R-2 R-1R-3 R-3 R-1R-3 R-1R-2SPA-7 R-1 R-2 R- 1 R-PR-1R-2R-1SPA-7R-1R-1R-1R-1R-1R-1 R-2R-1R-1SPA-8 R-1R-3 R-1R-1R-3R-2B R-1 C-3R-3 R-1R-1R-2B R-1R-1 R-1 R-1 R-2 R-1R-1R-1R-1R-1R-1R-1 R-1 R-1R-1R-1 R-1 R-1R-1R-1R-2 R-1R-1R-1R-2R-2R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R- 2 R- 3 R-1R-2R-1R- 2 R-3R-3R-1R-3R-2R-1R-1R-1R- 2 R- 3 R-1R-1 R-2B R-1R-1R-2 R-2B R-1R-1R-1 R-1 R-1R-1R-1R- 2 R-1R-1 R-1R-1R-1R-3 R-1 R-1R-1R-1R-1R-1R-1R- 1 R-1R-2 R-3 R-1R-1R-3R-1R-1R-1R-2 C-3R-2R-1R-1 R-1R-1R- 2 R-1R-1R-1 R-1R-2BR-2R-2R-1R-1 R-1R-1R-1R-2R-1R-1R-PR-3R-1R-3C-3R-3R-2R-2BR-1R-1R-1R-3R-2BR-1R-2B R-2 R-1R-2 R-1R-3R-1R-3R-1R-2BR-3R-1 R-1 R-3 R-2R- 2B R-3 R-1R-1 R-1R-2 R-1R-1SPA-11 R-3 R-1R-1 R-2B R-3 R-2 R-1R-1 SPA-8 R-1 R-1R-2 R-2 R-2 R-1R-1 A R-2 SPA-8 R-2 R-3R-PC-3SPA-9R-2BSPA-7R-1 R-2 SPA - 9 R-1R-1 C-1R-1R-1R-1C-2 R-3R- 2 R-2 R-3 R-1R-1 M-1 R-2 R- 1 SPA-7 R-1R-1R-1R-1R-1R-1 R-1 R-1R-1R- 1 R-1R-1R- 1 R-1R-3R-1R-3 R-1R- 1R-1R- 1 R-1R-1R- 1R-1R-1R- 1 R-1R-1R-1R- 1 R- 1 R-1R- 1 R-1R-1R- 1 R-1R-1R-1R-1R-1R- 1 R-1R-1 R-1 R- 1 R- 3 R-1R- 1 R- 3 R- 1 R- 1 R- 1 R-1R- 1 R- 1 R- 1R- 1 R- 1 R- 1 R-1R- 1 R- 1 R- 1R- 1 R-1R-1R-1R- 1 R-1R-1R- 1R- 1 R- 1 R-1R-1R-1R-1R-1R- 1 R- 1 R-1R- 1 R-1R-1R- 1C-1R-3R-1R-1R-3R- 3 R- 1 R-1R-1R- 1R-1R-1R- 1R- 1 R- 1R- 1 R- 1R-1R- 1 R-1R-1R-1R- 1R-1R-1R- 1 R-1R-1R- 1 R- 1R-1R- 1 R-1R- 1 R-1R-3R- 1 R-3R-1R-3R-1R-1R- 1 R- 1 R-1R-3R-1R-1R- 1 R-1R-1SPA-11R- 1 R-1R-1R-1R-1R-1R- 1 R- 1R-1R-1R- 3 R-1R-1R-1R-1R-1R- 1 R-1R-1R- 1 R- 3 R-1R-1R-1R- 1 R- 1R-1R-1 SPA-7R-1 R-2B R-1 R-3SPA-7SPA- 7 SPA-7 R-2B R-2BR-1R-2 SPA-8 M-1R-1R-1R-1R-1 R-2 R-3SPA-11C-3R-1AR-1R-2R-2R-3R-2BR-2BR-2BR-2BR-2BR-2BSPA-2R-2B R-1 SPA-2R-2BR-2BR-2BR-2BR-2BR-PR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2B R-3R-2BR-2BR-2BR-2BR-1R-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2B R-2 R-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-1AR-2BR-2BR-2BR-2BR-1 R-3R-1 R-2 R-2 R-1R-2BR-1 SPA-7 R-1 R-3 R-1 R-1 R-1 R-1 R-3 R-1 R-3 R-3R-1 R-3 R-1 R-1 R-1 R-3 R-1 R-1 R-3R-2 R-1R-1 R-1 R-1 R-1 R-1 R-1 R-2BR-2BR-2 R-1OSSPA-8 R-1 R-3R-2BSPA-7C-3C-1 R-1R-1 R-3 C-3R-1R-1R- 2 R-3 R-1 R-1 R-1 R-1R-2BR-1R-1R-1R-1R-3R-1R-1 R-3R-1R-1R-1R-1R-2 R-1 R-3 R-1 R-3R-2B R-3R-3 R-P R-1 SPA-9 R-1R-P R-2 R-1 R-3 R-P R-P R-1R-1 R-2B R-2 R-3 R- 1 R-2 R-2BR-2BR-2BC-3 R-2BR-2BR-1R-2B R-2 SPA-9 R-3 R-2BR-2BSPA-7 R-1 R-1 R-1 R-2 R-3 R-2 R-2R-3 R-3 R-2R-2SPA-2 R - 3 SPA-9 R-1R-1 R-3 R-3 R-3 SPA-11R-2 R-1 R-2B R-1 R-3 R- 1 R- 2B C-3 R - 1 C-3R-2B R-3 R-2 R-1 R-1R-3 R-2B SPA - 9SPA - 9 R-2 R-2B C-2SPA-11R- 1 R-3 R-3 SPA-7R-2B R-2BR-2B R-2B R-2B R-2BR-2B R-2B R-2B R-2B R-2B R-2B R-2B R-2B R-2B R-2B R-2B R-2BR-2BR-2B R-3 R-2B R-2B SPA-2 SPA-7 R-3 SPA-9 SPA-7R-2 R-2B SPA-7R-3 SPA-7SPA-7 R-2B R-2B SPA-7R-2B R-2B SPA-7 R-2B R-2B R-3 R-2B R-3R-1R-1 R-3R-3 R-1 R-3 R-2B R-1R-3 SPA-8 R-3SPA-11SPA-11SPA-8R-3R-2 R-2B SPA-8R-2 R-2 C-3 R-2 R-3 R-1R-3R-2B R-2 C-3C-3R-1R-3 R-2B R-2B R-1 R-3 R-2B R-3 R-1 R-3 R-3 SPA-8 SPA-11 SPA-8 R-1 R-3R-1 R-2 SPA-11SPA-11SPA-11SPA-11SPA-11SPA-11SPA-11 R-2 R-2B R-3 R-2B R-3 R-1 R-2B R-2B R-3 R-3R-2R-1 R-2B R-2 R-1 R-2 R-3 R-2 R-3 R-3 R-3 R-3R-3 R-3 R-3 R-3 R-3 R-3R- 1 R-2 R-3R-2R-3 R-3 R-3 R-3R-3 R-3R-3R-3 R-3 R-3R-3 R-3R-3R-1R-1 R-3 R-3 R-3R-3 R-3 R-3 R-3R-3R-3 R-3 SPA-8R-3 R-3 R-3 R-P R-3R-1 R-2R-2R- 3 R-2BR-3R-2BR-2R-2 C-2 R-2BR-2 C-2 R-3 C-3R-2BR-3 R-3R-2 C- 3 R-2 C- 3 R-2R- 1 R-3 R-3 R-2 R- 1 R-2 R-1R-2 R-3 R-3 R-3R-3R-3 R-3R-3R-2BR-3 R-2 R-1R-3 R-3 R- 1 R-2 R-2 R-3R-2 R-3 R- 1 R-3R-1AR - 1 R-3 R-2R-2R-2 R-2B R-2 R-3 R-3 R-3R-3 R-3 R-3 R-3 R-2 R- 2 R-2R-3R-3 R-3 R-2 R-2 R-1 R-1 R-2 R-3 R-1 R-P C - 2 R-3 R-2R-1 SPA-7 R-2 R-3 R-2R-1R-2SPA-11R-2 R- 2R-3 R-3R- 2 R-1 R-1 R-3R-1 R-3 R-3 SPA-11R-3 R-3 R-3 R-1 R-3 R-3R-2 R-3 R-1 R-3 R-3 R-1R- 2 R-3R-2R-3R-3R-1R-3R- 2 R- 2 R-2 R-3 R-3 R- 2R-2R- 1 R-2R- 2 R-2 R-2 R-2R-2 R-3 R-2R-2 R-2R-2R-2R-2R-2 R-2 R-2 R-2 R-2 R-2R-2R-2R-2 R-3R-2 R-1 R-1C-2R-1 R-3 R-2C-3R-3 R-2R-2R-2R-2C-3R-3 C-3R-3R-1R-2 R-3 R-2R-2BR-1R- 1 R- 1 R-2BR-2 R-2R-2R-2 R-2 R-2 R-2R-2R-2R-2R-2 R-2 R-2 R-2 R-2R-3R-2 R-2 R-2R-3 R-2R-3R-2 R-2 R-2R-2R-2 R-3 R-2R-2 R-2R-2R-3 R-2R-2 R-2 R-3 R-3R-2 R-2R-2R-2 R-2 C - 2R- 1 R-2R-2 R-2R-2R-2R-2R-2B R - 3 R-2B R-3 R-3 R-2B R-3 R-3 R-3 R-1 R-3/OS-O R-3/OS-O M-1 R-3/OS-O R-1A R-2B/OS-O R-3/OS-O R-3/OS-O R-2B/OS-O R-3/OS-O R-2B/OS-O R-2B/OS-O R-2B/OS-O R-2B/OS-O R-2B/OS-O R-2B/OS-O R-2B/OS-O R-2B/OS-O R-2B/OS-O R-2B/OS-O ® Zoning Map City of Hermosa Beach Last updated March 08, 2011 Unclass UNCLASSIFIED (SCHOOL DISTRICT) ZONING DESIGNATIONS R-1 ONE FAMILY RESIDENTIAL R-1A LIMITED ONE-FAMILY RESIDENTIAL R-2 TWO-FAMILY RESIDENTIAL R-2B LIMITED MULTIPLE FAMILY RESIDENTIAL R-2B/OS-O LIMITED MULTIPLE FAMILY OPEN SPACE OVERLAY R-3 MULTIPLE FAMILY RESIDENTIAL R-3/OS-O MULTIPLE FAMILY OPEN SPACE OVERLAY R-P RESIDENTIAL-PROFESSIONAL RPD RESIDENTIAL PLANNED DEVELOPMENT R-3PD MULTIPLE FAMILY PLANNED DEVELOPMENT C-1 NEIGHBORHOOD COMMERCIAL C-2 RESTRICTED COMMERCIAL C-3 GENERAL COMMERCIAL M-1 LIGHT MANUFACTURING OS OPEN SPACE OS-1 RESTRICTED OPEN SPACE OS-2 RESTRICTED OPEN SPACE MHP MOBILE HOME PARK SPA SPECIFIC PLAN AREA (RESIDENTIAL USES) SPA SPECIFIC PLAN AREA (COMMERCIAL USES) OTHER DESIGNATIONS COASTAL ZONE BOUNDARY COASTAL ZONE APPEALABLE AREA (WEST OF LINE) DOWNTOWN DISTRICT WALK STREETS #FRONT YARD SETBACKS 1 VALLEY PARK 2 CLARK STADIUM 3 COMMUNITY/CIVIC CENTER 4 EDITH RODAWAY FRIENDSHIP PARK 5 SEA VIEW PARK 6 FORT LOTS-OF-FUN/PROSPECT SCHOOL 7 MOONDUST PARK 8 GREENWOOD PARK 9 BI-CENTENNIAL PARK KAY-ETOW PARK10 SHAFFER PARK11 4TH & PROSPECT PARK12 8TH & VALLEY PARK13 SCOUT PARK14 ARDMORE PARK15 GREENBELT16 BEACH/STRAND/BIKE PATH17 NOBLE PARK18 SOUTH PARK19 RECREATIONAL VEHICLE PARK20 CITY YARD21 ATTACHMENT 2-M 2-M Palm DrValley DrThe StrandManhattan AveArdmore AveBayview DrProspect AvePacific Coast HwyMonterey BlvdBeach Dr7th St 8th Pl 5th St 25th St 10th St 6th St Pier Ave 2nd St 14th StHermosa Ave 30th St Harpe r Ave 31st St 16th St Gou l d A v e 29th St 31st Pl Sunset Dr28th St Ocean Dr30th Pl Alley 32nd Pl 33rd St 17th St 33rd Pl 29th Ct 1st St 28th Ct 3rd St 7th PlLoma DrAviation Blvd8th St 24th Pl 9th St 27th St 1st Pl 4th St Herondo StOzone C t Longfellow Av e 24th St Artesia Blvd 21st St 13th St 26th St 15th St 19th St Bonnie Brae StOwosso Ave34th St Rhodes StHillcrest Dr11th St Hollowell AveIng les ide D r 20th St Bard StGentry StMyr t le Ave Oak St 20th Pl Gou l d T e r Reynolds LnPower St27th Ct 1st CtPark Ave34th Pl 22nd St Hil l S t Tennyson Pl17th Ct 18th St 18th Ct 16th Ct Porter Ln 15th PlAva Ave11th Pl 19th Ct 14th Ct Circ l e D r 13th Ct Lyndon St Cypress Ave9th Ct Corona StValley Park Ave11th Ct 8th Ct 15th Ct 12th Ct 20th Ct Hopkins StPier Plaza 10th Ct 7th Ct G o l d e n A v e 35th St Silve r S t 6th Ct Culper CtPine StMeyer Ct21st Ct 5th Ct Springfield AveMassey AveNeptune 4th Ct 23rd St Campana StOcean View Ave3rd Ct 35th Pl Amby PlM o r n i n g s i d e D r Aubrey Park CtMarlita Pl Greenwich VillageBorden AveHermosa View DrMira StVista Dr 21st St 24th St 20th St 3rd St 13th St Harper Ave1st StCypress Ave21st St 21st St 24th St 30th St 9th St 5th St 7th St 35th St 4th St Oak St 4th St 3rd St 1st Pl 10th StBeach Dr1st St Longfellow Ave 19th St 3rd St 25th St 11th St Ardmore Ave 34th St 20th St 6th St 8th St 15th St Morn ings ide D r 11th St 4th StBeach Dr16th St Power St24th Pl 18th St Alley2nd St 18th St Loma DrAlley7th St 17th St 14th St 10th St 11th St 7th St Bard StHermosa AveHarpe r Ave 1st StLoma Dr24th St 4th St 11th StAll e y Alley 24th St 9th St 19th St 6th St 11th Pl ± City of Hermosa Beach ATTACHMENT 2-N MAP OF NARROW STREETS AND ALLEYS 2 - N ATTACHMENT 2-O March 13, 2012 2-O City of Hermosa Beach ATTACHMENT 2-O March 13, 2012 2-O City of Hermosa Beach ATTACHMENT 2-O March 13, 2012 2-O City of Hermosa Beach ATTACHMENT 2-O March 13, 2012 2-O City of Hermosa Beach ATTACHMENT 2-O March 13, 2012 2-O City of Hermosa Beach ATTACHMENT 2-O March 13, 2012 2-O City of Hermosa Beach ATTACHMENT 2-O March 13, 2012 2-O City of Hermosa Beach ATTACHMENT 2-O March 13, 2012 2-O City of Hermosa Beach ATTACHMENT 2-O March 13, 2012 2-O City of Hermosa Beach ATTACHMENT 2 3/13/2012 2-P City of Hermosa Beach \ Collection Rate "Porter Service" Cost AB939 Fees Monthly Total Per Customer CITY OF HERMOSA BEACH 1309 HERMOSA AVE City Services - 0.00%-$ -$ -$ -$ CITIBANK WEST FSB 81 PIER AVE Citibank 3.00 0.70%24.37$ 59.58$ 1.28$ 85.22$ SILVIOS BRAZILIAN BBQ 20 PIER AVE Brazilian Steakhou 6.00 1.40%48.73$ 119.15$ 2.55$ 170.43$ DOWNTOWN BAKERY 37 PIER AVE Bakeries 6.00 1.40%48.73$ 119.15$ 2.55$ 170.43$ BEACH SHOP 49 PIER AVE Business 2.00 0.47%16.24$ 39.72$ 0.85$ 56.81$ HERMOSA CYCLERY INC 20 13TH ST Bicycle Shop 3.00 0.70%24.37$ 59.58$ 1.28$ 85.22$ LAPPERTS HB3 CREAMS & SNACK 29 PIER AVE Ice Cream Shop 3.00 0.70%24.37$ 59.58$ 1.28$ 85.22$ WEST BAY APTS 30 13TH ST Small Apartments 2.00 0.47%16.24$ 39.72$ 0.85$ 56.81$ SPYDER SURF 65 PIER AVE Surf Shop 4.00 0.93%32.49$ 79.43$ 1.70$ 113.62$ CANTINA REAL 19 PIER AVE Bars 15.00 3.50%121.83$ 297.88$ 6.38$ 426.08$ TREASURE CHEST 50 PIER AVE Retail 3.00 0.70%24.37$ 59.58$ 1.28$ 85.22$ ROBERT'S LIQUOR 74 PIER AVE Liquor Stores 4.00 0.93%32.49$ 79.43$ 1.70$ 113.62$ MERMAID RESTAURANT 11 PIER AVE Coffee Shops 12.00 2.80%97.46$ 238.30$ 5.10$ 340.87$ LIGHT HOUSE CAFE 30 PIER AVE Small Restaurants 21.00 4.91%170.56$ 417.03$ 8.93$ 596.52$ PIER SIDE PROP LLC 53 PIER AVE Business 3.00 0.70%24.37$ 59.58$ 1.28$ 85.22$ FAT FACE FENNER'S FISHACK 53 PIER AVE Fish Restaurant 21.00 4.91%170.56$ 417.03$ 8.93$ 596.52$ THE POOP DECK 1272 THE STRAND Small Restaurants 3.00 0.70%24.37$ 59.58$ 1.28$ 85.22$ HENNESSEY'S TAVERN INC 8 PIER AVE Restaurants 56.00 13.08%454.82$ 1,112.07$ 23.81$ 1,590.71$ STREET RETAIL WEST 1221 HERMOSA AVE Clothing Store 3.00 0.70%24.37$ 59.58$ 1.28$ 85.22$ BEACH MARKET INC 1325 HERMOSA AVE Grocery Store 9.00 2.10%73.10$ 178.73$ 3.83$ 255.65$ GOOD STUFF ON THE STRAND 1286 THE STRAND Small Restaurants 21.00 4.91%170.56$ 417.03$ 8.93$ 596.52$ MICHAEL ROSSI 26 PIER AVE Business 3.00 0.70%24.37$ 59.58$ 1.28$ 85.22$ BREWSKIS MEDITERRANEO 73 PIER AVE Brewery 9.00 2.10%73.10$ 178.73$ 3.83$ 255.65$ BANK OF AMERICA 90 PIER AVE Bank of America 6.00 1.40%48.73$ 119.15$ 2.55$ 170.43$ DRAGON WATERMANS 22 PIER AVE Club 21.00 4.91%170.56$ 417.03$ 8.93$ 596.52$ 1303 HERMOSA AVENUE LLC 1303 HERMOSA AVE Business 3.00 0.70%24.37$ 59.58$ 1.28$ 85.22$ SCOTTY'S 1100 THE STRAND Restaurants 28.00 6.54%227.41$ 556.04$ 11.91$ 795.35$ SEA SPRITE MOTEL 1016 THE STRAND Motels 6.00 1.40%48.73$ 119.15$ 2.55$ 170.43$ PATRICK MALLOY'S 50 PIER AVE Bars 42.00 9.81%341.12$ 834.05$ 17.86$ 1,193.03$ SANGRIA 68 PIER AVE Small Restaurants 21.00 4.91%170.56$ 417.03$ 8.93$ 596.52$ PIER SURF 21 PIER AVE Surf Shop 4.00 0.93%32.49$ 79.43$ 1.70$ 113.62$ TIKI MON 31 PIER AVE Small Café 6.00 1.40%48.73$ 119.15$ 2.55$ 170.43$ CROSS FIT HERMOSA 310 PIER AVE Fitness Store 3.00 0.70%24.37$ 59.58$ 1.28$ 85.22$ SUSATION SUNGLASS 34 PIER AVE Sunglasses Shop 2.00 0.47%16.24$ 39.72$ 0.85$ 56.81$ ZEPPYS PIZZA 36 PIER AVE Pizza Shops 9.00 2.10%73.10$ 178.73$ 3.83$ 255.65$ SHARKEEZ 52 PIER AVE Restaurants 56.00 13.08%454.82$ 1,112.07$ 23.81$ 1,590.71$ PALMILLA 39 PIER AVE Restaurants 9.00 2.10%73.10$ 178.73$ 3.83$ 255.65$ 428.00 100.00%3,476.16 8,499.40 182.00 12,157.56$ Collection Rate 3,476.16$ AB939 182.00$ Porter Cost 8,499.40$ 103.92Total12,157.56$ Lot A/Porter Service Customers Customer Address Hauler- Estimnated Service Level Yards Service Levels Based on Comparable Business Cost Component Based On Customer's Estimated % of % of Cost based on Estimated Capacity Below is the current hauler's estimated division of Lot A refuse and recyclables collection and porter service costs among the participating customers. Page Contents 3-A Proposed Estimated First-Year Revenue 3-B Proposed First Year Rates - Residential Service 3-C Proposed Estimated First Year Bin and Commercial Cart Rate Revenue - Proposed Refuse and Special Rates 3-D Proposed Estimated First Year Bin and Commercial Cart Rate Revenue - Proposed Recycling Rates 3-E Proposed Estimated First Year Bin and Commercial Cart Rate Revenue - AB 939 Fees 3-F Proposed Estimated First Year Bin and Commercial Cart Rate Revenue - Proposed Rates with AB 939 Fees 3-G Proposed Estimated First Year Bin and Commercial Cart Rate Revenue - Service Levels 3-H Proposed Estimated First Year Bin and Commercial Cart Rate Revenue - Total Rate Revenue 3-I Proposed Estimated First Year Roll-Off Box and Temporary Bin Rate Revenue 3-J Proposed Optional Residential HHW Program ATTACHMENT 3 RATE PROPOSAL FORMS Table of Contents ATTACHMENT 3 3/13/2012 3-A Ci ty of Hermosa Beach Proposing Company: Row Service Category Proposed First Year Annual Rate Revenue(1)Reference 1 Option 1: Cart System 2 Residential Cart Service Revenue (Option 1)To Be Determined (2) 3 Bin and Commercial Cart Revenue -$ Attachment 3-H, Line 31 4 Roll-off Box and Temporary Bin Rate Revenue -$ Attachment 3-I, Line 11 5 Option 2: Single Stream 6 Residential Can Service Revenue (Option 2)To Be Determined (2) 7 Bin and Commercial Cart Revenue -$ Attachment 3-H, Line 31 8 Roll-off Box and Temporary Bin Rate Revenue -$ Attachment 3-I, Line 11 (1) Inclusive of all City fees. PROPOSED ESTIMATED FIRST-YEAR RATE REVENUE Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. Enter proposer's name in the above bolded box. Confirm that rate revenue is accurately reflected, based upon proposer's proposed rates. (2) For proposal evaluation purposes, single family cart service rate revenues will be estimated by the City using the contractor's proposed rate, and the cart distribution based on the average container distribution estimated by proposers. ATTACHMENT 3 3/13/2012 3-B City of Hermosa Beach Proposing Company: Row Monthly Rate 1 Option 1: Cart System 2 One refuse and unlimited recycling carts (1) 3 - 95-gallon refuse cart (2)-$ 4 - 64-gallon refuse cart - Base Rate 5 - 35-gallon refuse cart (3)-$ 6 Unlimited refuse and recycling can collection (1) 7 Additional Refuse Cart Rates (for each refuse cart above one) 8 - 95-gallon $8.00 9 - 64-gallon $6.00 10 - 35-gallon $4.00 11 Opt-In Green Waste Program (4) 12 - 96-gallon 13 - 64-gallon 14 - 35-gallon 15 Option 2: Single Stream 16 Unlimited single stream refuse and recycling collection (1) 17 Opt-In Green Waste Program (5)included (2) 95-gallon refuse cart rate shall be set $4.00 per month higher than the proposed 64-gallon rate. (3) 35-gallon refuse cart rate shall be set $4.00 per month lower than the proposed 64-gallon rate. PROPOSED FIRST-YEAR RATES - RESIDENTIAL SERVICE Provide rates in the bold boxes on rows 4, 6, 12, 13 and 14 for Option 1. The 95 and 35-gallon cart rates should calculate automatically based on the 64-gallon rate. Enter a rate on row 16 for Option 2. See Attachments 4-A and 4-B for annual revenue estimate. Proposed rates shall include all City fees. Service Category Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. - (4) Propose rates no higher than additional refuse cart rates. (5) Green waste included in program at no additional cost. Details of Option 2 green waste program must be described, including container type, in proposal. (1) Includes $0.25/home/month AB 939 fee. ATTACHMENT 3 3/13/2012 3-C City of Hermosa Beach Proposing Company: 1 Porter Service Monthly Rate - to be allocated among participating businesses 1 2 3 4 5 6 7 2 Refuse Containers 3 32-Gallon Cart -$ -$ -$ -$ -$ -$ -$ 4 64-Gallon Cart -$ -$ -$ -$ -$ -$ -$ 5 96-Gallon Cart -$ -$ -$ -$ -$ -$ -$ 6 1 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 7 1.5 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 8 2 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 9 3 Cubic Yard -$ -$ -$ -$ -$ -$ 10 4 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 11 6 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 12 8 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 13 Special Services (set equal to current rates) 14 Scout Service 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 15 Push-Out Service 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 16 Locking Bin 5.79$ 5.79$ 5.79$ 5.79$ 5.79$ 5.79$ 5.79$ 1 2 3 4 5 6 7 17 Refuse Containers 18 32-Gallon Cart 24%42%59%77%94%112%140% 19 64-Gallon Cart 38%66%93%120%147%175%217% 20 96-Gallon Cart 52%87%122%157%192%227%262% 21 1 Cubic Yard 64%96%129%161%192%225%263% 22 1.5 Cubic Yard 71%107%152%179%214%287%336% 23 2 Cubic Yard 86%132%179%225%264%304%355% 24 3 Cubic Yard 100%154%207%261%314%367%431% 25 4 Cubic Yard 120%184%278%313%377%442%517% 26 6 Cubic Yard 150%230%311%391%472%552%646% 27 8 Cubic Yard 186%286%383%479%571%668%783% (1) Proposed rates shall include all City fees, with the exception of AB 939 fees which are included on Attachment 3-E. Instructions: Enter proposed rates for Porter Service on row 1 and for the monthly collection of a three-cubic-yard bin once per week on row 9. All other rates on this page (Attachment 3-C) and for commercial recycling (Attachment 3-D) should calculate in a a preset relationship to the proposed three-yard rate. See relationship of rates listed below; this represents the relationship between existing rates. PROPOSED ESTIMATED FIRST-YEAR BIN AND COMMERCIAL CART RATE REVENUE - PROPOSED REFUSE & SPECIAL RATES Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. Row Container Type/Size Number of Collections per Week - Proposed Monthly Rates (1) Row Container Type/Size Number of Collections per Week Relationship of Proposed 3-Yard Bin, 1x Week Rate to Other Rates ATTACHMENT 3 3/13/2012 3-D City of Hermosa Beach Proposing Company: 1 2 3 4 5 6 7 1 18-Gallon Cart (2)-$ 2 32-Gallon Cart -$ -$ -$ -$ -$ -$ -$ 3 64-Gallon Cart -$ -$ -$ -$ -$ -$ -$ 4 96-Gallon Cart -$ -$ -$ -$ -$ -$ -$ 5 1 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 6 1.5 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 7 2 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 8 3 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 9 4 Cubic Yard -$ -$ -$ -$ -$ -$ -$ (1) Calculated based on refuse rates from Attachment 3-C. Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. (2) No comparable refuse rate. 18-gallon rate is set at 64% of the 32-gallon recycling rate. Instructions: Confirm that maximum recycling rates are no more than 50% of refuse rates. PROPOSED ESTIMATED FIRST-YEAR BIN AND COMMERCIAL CART RATE REVENUE - PROPOSED RECYCLING RATES - Proposed Monthly Recycling Rates - 50% of Refuse Rates (1) Row Container Type/Size Number of Collections per Week ATTACHMENT 3 3/13/2012 3-E City of Hermosa Beach Proposing Company: 1 2 3 4 5 6 7 1 32-Gallon Cart 0.17$ 0.34$ 0.51$ 0.68$ 0.85$ 1.02$ 1.19$ 2 64-Gallon Cart 0.35$ 0.70$ 1.05$ 1.40$ 1.75$ 2.10$ 2.45$ 3 96-Gallon Cart 0.51$ 1.02$ 1.53$ 2.04$ 2.55$ 3.06$ 3.57$ 4 1 Cubic Yard 1.08$ 2.16$ 3.24$ 4.32$ 5.40$ 6.48$ 7.56$ 5 1.5 Cubic Yard 1.62$ 3.24$ 4.86$ 6.48$ 8.10$ 9.72$ 11.34$ 6 2 Cubic Yard 2.17$ 4.34$ 6.51$ 8.68$ 10.85$ 13.02$ 15.19$ 7 3 Cubic Yard 3.25$ 6.50$ 9.75$ 13.00$ 16.25$ 19.50$ 22.75$ 8 4 Cubic Yard 4.33$ 8.66$ 12.99$ 17.32$ 21.65$ 25.98$ 30.31$ 9 6 Cubic Yard 6.50$ 13.00$ 19.50$ 26.00$ 32.50$ 39.00$ 45.50$ 10 8 Cubic Yard 8.66$ 17.32$ 25.98$ 34.64$ 43.30$ 51.96$ 60.62$ Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. Monthly AB 939 Fees (applied only to refuse rates) PROPOSED ESTIMATED FIRST-YEAR BIN AND COMMERCIAL CART RATE REVENUE - AB 939 FEES - Row Refuse Container Size Number of Collections per Week Below are the AB 939 fees assessed on monthly refuse service. These rates are equal to $0.25 per yard of capacity collected monthly. ATTACHMENT 3 3/13/2012 3-F City of Hermosa Beach Proposing Company: 1 Porter Service Monthly Rate - to be allocated among participating businesses 1 2 3 4 5 6 7 2 Refuse Containers 3 32-Gallon Cart -$ -$ -$ -$ -$ -$ -$ 4 64-Gallon Cart -$ -$ -$ -$ -$ -$ -$ 5 96-Gallon Cart -$ -$ -$ -$ -$ -$ -$ 6 1 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 7 1.5 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 8 2 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 9 3 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 10 4 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 11 6 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 12 8 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 13 Recycling Containers at 50% of Refuse Rates 14 18-Gallon Cart -$ -$ -$ -$ -$ -$ -$ 15 32-Gallon Cart -$ -$ -$ -$ -$ -$ -$ 16 64-Gallon Cart -$ -$ -$ -$ -$ -$ -$ 17 96-Gallon Cart -$ -$ -$ -$ -$ -$ -$ 18 1 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 19 1.5 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 20 2 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 21 3 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 22 4 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 23 Special Services 24 Scout Service 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 25 Push-Out Service 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 26 Locking Bin 5.79$ 5.79$ 5.79$ 5.79$ 5.79$ 5.79$ 5.79$ (1) Attachment 3-C plus Attachment 3-E. Inclusive of all City fees. Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. Instructions: Confirm that the following rates reflect the proposed rates from Attachment 3-C plus the AB 939 fees from Attachment 3-E. PROPOSED ESTIMATED FIRST-YEAR BIN AND COMMERCIAL CART RATE REVENUE - PROPOSED RATES WITH AB 939 FEES - Proposed Monthly Rates, inclusive of AB 939 Fees (1) -$ Row Container Type/Size Number of Collections per Week ATTACHMENT 3 3/13/2012 3-G City of Hermosa Beach Proposing Company: 1 2 3 4 5 6 7 1 Refuse Containers 2 32-Gallon Cart 5 5 3 64-Gallon Cart 15 2 17 4 96-Gallon Cart 22 22 5 1 Cubic Yard 56 14 5 3 78 6 1.5 Cubic Yard 43 14 4 1 62 7 2 Cubic Yard 84 27 10 2 123 8 3 Cubic Yard 85 66 48 10 9 5 223 9 4 Cubic Yard 5 11 11 13 6 11 2 59 10 6 Cubic Yard 1 2 1 1 5 11 8 Cubic Yard 1 1 12 Recycling Containers 13 18-Gallon Cart 2 2 14 32-Gallon Cart 14 14 15 64-Gallon Cart 287 3 6 1 297 16 96-Gallon Cart 200 30 8 6 244 17 1 Cubic Yard 6 2 8 18 1.5 Cubic Yard 1 1 19 2 Cubic Yard 5 4 9 20 3 Cubic Yard 4 2 3 9 21 4 Cubic Yard 4 1 5 22 Special Services 23 Scout Service 34 31 32 11 4 2 3 117 24 Push-Out Service (per 50 feet) (2)64 31 6 5 3 3 0 112 25 Locking Bin 23 8 5 3 0 0 0 39 PROPOSED ESTIMATED FIRST-YEAR BIN AND COMMERCIAL CART RATE REVENUE - SERVICE LEVELS - Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. Container/Service Count (1) Row Container Type/Size Number of Collections per Week Total (1) For purposes of estimating proposed first year rate revenue, these service levels include an estimate of revenue-producing services. City facilities are not included in the above service level counts. (2) Not applicable for push-outs less than ten feet. Fee may be charged once for 10 to 50 feet, twice for 51 to 100 feet, etc. ATTACHMENT 3 3/13/2012 3-H City of Hermosa Beach Proposing Company: 1 2 3 4 5 6 7 1 Refuse Containers 2 32-Gallon Cart -$ -$ -$ -$ -$ -$ -$ -$ 3 64-Gallon Cart -$ -$ -$ -$ -$ -$ -$ -$ 4 96-Gallon Cart -$ -$ -$ -$ -$ -$ -$ -$ 5 1 Cubic Yard -$ -$ -$ -$ -$ -$ -$ -$ 6 1.5 Cubic Yard -$ -$ -$ -$ -$ -$ -$ -$ 7 2 Cubic Yard -$ -$ -$ -$ -$ -$ -$ -$ 8 3 Cubic Yard -$ -$ -$ -$ -$ -$ -$ -$ 9 4 Cubic Yard -$ -$ -$ -$ -$ -$ -$ -$ 10 6 Cubic Yard -$ -$ -$ -$ -$ -$ -$ -$ 11 8 Cubic Yard -$ -$ -$ -$ -$ -$ -$ -$ 12 Recycling Containers at 50% of Refuse Rate 13 18-Gallon Cart -$ -$ -$ -$ -$ -$ -$ -$ 14 32-Gallon Cart -$ -$ -$ -$ -$ -$ -$ -$ 15 64-Gallon Cart -$ -$ -$ -$ -$ -$ -$ -$ 16 96-Gallon Cart -$ -$ -$ -$ -$ -$ -$ -$ 17 1 Cubic Yard -$ -$ -$ -$ -$ -$ -$ -$ 18 1.5 Cubic Yard -$ -$ -$ -$ -$ -$ -$ -$ 19 2 Cubic Yard -$ -$ -$ -$ -$ -$ -$ -$ 20 3 Cubic Yard -$ -$ -$ -$ -$ -$ -$ -$ 21 4 Cubic Yard -$ -$ -$ -$ -$ -$ -$ -$ 22 Special Services 23 Scout Service 393$ 359$ 370$ 127$ 46$ 23$ 35$ 1,353$ 24 Push-Out Service (per 50 feet) (1)740$ 359$ 69$ 58$ 35$ 35$ -$ 1,296$ 25 Locking Bin 133$ 46$ 29$ 17$ -$ -$ -$ 225$ 26 -$ 27 Monthly Porter Service Revenue (Attachment 3-C, Row 1)-$ 28 Total Projected Monthly Revenue -$ 29 12$ 30 -$ Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. Projected Monthly Collection Revenue Months PROPOSED ESTIMATED FIRST-YEAR BIN AND COMMERCIAL CART RATE REVENUE - TOTAL RATE REVENUE - Instructions: Rate revenue should calculate automatically. Confirm accuracy of calculations. Proposed Monthly Rate Revenue, inclusive of AB 939 fee Projected Annual Revenue (1) Not applicable for push-outs less than ten feet. Fee may be charged once for 10 to 50 feet, twice for 51 to 100 feet, etc. Row Container Type/Size Number of Collections per Week Total ATTACHMENT 3 3/13/2012 3-I City of Hermosa Beach Proposing Company: instructions: Enter proposed rates in bolded boxes. 1 Roll-Off Box Pulls 2 Standard Roll-Off Box - 20, 30, 40 yard per pull 10.00$ per pull (1)-$ per pull 98 pulls -$ 3 Compactor Roll-Off Box - 20 yard per pull 5.00$ per pull -$ per pull - pulls -$ 4 Compactor Roll-Off Box - 30 yard per pull 7.50$ per pull -$ per pull 12 pulls -$ 5 Compactor Roll-Off Box - 40 yard per pull 10.00$ per pull -$ per pull - pulls -$ 6 Total Service Component 110 pulls (2)-$ 7 Roll-Off Box Tons 8 Dump Fee per ton -$ per ton 485 tons (3)-$ 9 Total Roll-Off Service -$ 10 Temporary Bin 3 Cubic Yard per dump 0.75$ per dump -$ per dump 51 dumps -$ 11 Annual Rate Revenue -$ (1) Assumes all pulls are 40 cubic yards. AB 939 fees are $5.00 per pull for 20 yard standard roll-off box and $7.50 per pull for 30 yard standard roll-off box. (2) Estimated City facilities pulls not included. (3) Estimated City facilities tons not included. Row Service Count Annual Proposed First Year Rate RevenueContainer/Service Type Proposed Rate AB 939 Fee Total Rate Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. PROPOSED ESTIMATED FIRST-YEAR ROLL-OFF BOX AND TEMPORARY BIN RATE REVENUE - Customer Rate ATTACHMENT 3 3/13/2012 3-J City of Hermosa Beach Proposing Company: Instructions: Enter proposed rate in bolded box. Row Customer Type Estimated Dwelling Unit Count Proposed Per Dwelling Unit Monthly Rate (1) Estimated Monthly Rate Revenue Estimated Annual Rate Revenue 1 Individually Serviced Residential Units 6,621 -$ -$ 2 Bin Customer Units 2,929 -$ -$ -$ 3 Estimated Total Dwelling Units 9,550 -$ (1) Same rate for all dwelling units. PROPOSED OPTIONAL RESIDENTIAL HHW PROGRAM - Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. Page Contents 4-A Proposed Estimated Rate Revenue - Option 1: Cart System 4-B Proposed Estimated Rate Revenue - Option 2: Single Stream 4-C Projected Revenue Requirement for First Twelve Months of Franchise Agreement - Option 1: Cart System 4-D Projected Revenue Requirement for First Twelve Months of Franchise Agreement - Option 2: Single Stream 4-E Projected Routes and Route Hours 4-F Cost Components and Cost Weightings 4-G Tonnage Diversion Plan ATTACHMENT 4 SUPPORTING COST AND OPERATING DATA WORKSHEETS Table of Contents ATTACHMENT 4 3/13/2012 4-A City of Hermosa Beach Instructions: Provide rates in bold boxes for rates and estimated service counts. Additional rates should automatically calculate. Row Option 1: Cart System Monthly Rate (from 3-B)Monthly Revenue Annual Revenue 1 One refuse and unlimited recycling carts 2 - 96-gallon refuse cart -$ units -$ -$ 3 - 64-gallon refuse cart - Base Rate -$ units -$ -$ 4 - 35-gallon refuse cart -$ units -$ -$ 5 Unlimited refuse and recycling can collection (2)-$ units 6 Total Number of Customers (must total 6,621 units)- units 7 Backyard Service Charge 4.00$ 39 units 156$ 1,872$ 8 Additional Refuse Cart Rates (for each refuse cart above one) 9 - 96-gallon 8.00$ units -$ -$ 10 - 64-gallon 6.00$ units -$ -$ 11 - 35-gallon 4.00$ units -$ -$ 12 Opt-In Green Waste Program 13 - 96-gallon -$ units -$ -$ 14 - 64-gallon -$ units -$ -$ 15 - 35-gallon -$ units -$ -$ 16 Total Residential Cart Service Rate Revenue -$ -$ 17 Bin and Commercial Cart Revenue -$ 18 Roll-Off Box and Temporary Bin Rate Revenue -$ 19 Total Rate Revenue - Option 1 -$ (1) Proposers shall propose the customer cart distribution assumed by proposer in developing this proposal. (2) For customers unable to accommodate carts. PROPOSED ESTIMATED RATE REVENUE - OPTION 1: CART SYSTEM Proposing Company:- Count (1) Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. ATTACHMENT 4 3/13/2012 4-B City of Hermosa Beach Instructions: Provide estimated service count in bold box. Additional rates should automatically calculate. Row Option 2: Single Stream Monthly Rate (from 3-B)Monthly Revenue Annual Revenue 1 1x week, unlimited refuse, and recycling collection in customer-provided containers 2 Per Unit -$ 6,621 units -$ -$ 3 Backyard Service Charge 4.00$ 39 units 156$ 1,872$ 4 Opt-In Green Waste Program Included units (1) 5 Total Residential Service Rate Revenue -$ -$ 6 Bin and Commercial Cart Revenue -$ 7 Roll-Off Box and Temporary Bin Rate Revenue -$ 8 Total Rate Revenue - Option 2 -$ (1) Indicate projected participants. PROPOSED ESTIMATED RATE REVENUE - OPTION 2: SINGLE STREAM Proposing Company:- Count Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. ATTACHMENT 4 3/13/2012 4-C City of Hermosa Beach Proposing Company: Instructions: Fill in boxes outlined in bold. Refuse Recyclables Green Waste Refuse Recyclables 1 Operations 2 Porter Service Costs -$ 3 Truck Operating Costs (a)-$ 4 Transfer Station, Transport, MRF costs -$ 5 Transformation Costs (if applicable)-$ 6 Greenwaste Processing/Disposal Costs -$ 7 Landfill Disposal Costs (b)-$ 8 Container Depreciation/Amortization Costs -$ 9 Less Recyclable Material Sales Revenues (c) -$ 10 Subtotal: Operations Costs -$ -$ -$ -$ -$ -$ -$ -$ 11 General, Administrative and Profit 12 Administrative Fee 50,000$ 13 Annualized Auditing Fee (d) 25,714$ 14 Amortized City Contracting Fee (e)21,429$ 15 Collector Fee (f)-$ 16 AB 939 Fee 61,367$ 17 Other 18 TOTAL REVENUE REQUIREMENT -$ 19 Tons Collected - 20 Operations Cost Per Ton Collected -$ -$ -$ -$ -$ -$ -$ -$ 21 Revenue Requirement per Ton Collected -$ (c) Net revenue should be entered as a negative value. (e) $150,000 amortized over the 7-year base term of the agreement. (f) 10% of total rate revenue. Should automatically calculate as 10% of Attachment 4-A, Row 19. (g) Includes billed customers and services provided to schools and City facilities with bin services. PROJECTED REVENUE REQUIREMENT FOR THE FIRST TWELVE MONTHS OF FRANCHISE AGREEMENT - Row Residential Cart Service Option 1: Cart System Bin Service (g) Roll-Off Service Bulky Item Pickup, Holiday Trees, City wide Cleanups, Special Events, Other TOTAL ANNUAL REVENUE RQMT (b) Includes actual disposal costs at landfill, net of transfer, transport and processing to be included on Row 3. (d) $80,000 second year, $50,000 every two years thereafter. Assume 3 audits ($180,000/7 years). Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. (a) Includes Driver/Helper/Supervisor Wages and Benefits, Vehicle Depreciation and Maintenance, Vehicle Insurance, Fuel, Uniforms and Other Route Costs. ATTACHMENT 4 3/13/2012 4-D City of Hermosa Beach Proposing Company: Instructions: Fill in boxes outlined in bold. Refuse/ Recyclables Yard Waste Refuse Recyclables 1 Operations 2 Porter Service Costs -$ 3 Truck Operating Costs (a)-$ 4 Transfer Station, Transport, MRF costs -$ 5 Transformation Costs (if applicable)-$ 6 Greenwaste Processing/Disposal Costs -$ 7 Landfill Disposal Costs (b)-$ 8 Container Depreciation/Amortization Costs -$ 9 Less Recyclable Material Sales Revenues (c) -$ 10 Subtotal: Operations Costs -$ -$ -$ -$ -$ -$ -$ 11 General, Administrative and Profit 12 Administrative Fee 50,000$ 13 Annualized Auditing Fee (d) 25,714$ 14 Amortized City Contracting Fee (e)21,429$ 15 Collector Fee (f)-$ 16 AB 939 Fee 61,367$ 17 Other 18 TOTAL REVENUE REQUIREMENT -$ 19 Tons Collected - 20 Operations Cost Per Ton Collected -$ -$ -$ -$ -$ -$ -$ 21 Revenue Requirement per Ton Collected -$ (c) Net revenue should be entered as a negative value. (e) $150,000 amortized over the 7-year base term of the agreement. (f) 10% of total rate revenue. Should automatically calculate as 10% of Attachment 4-B, Row 8. (g) Includes billed customers and services provided to schools and City facilities with bin services. Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. Option 2: Single Stream (a) Includes Driver/Helper/Supervisor Wages and Benefits, Vehicle Depreciation and Maintenance, Vehicle Insurance, Fuel, Uniforms and Other Route Costs. (b) Includes actual disposal costs at landfill, net of transfer, transport and processing to be included on Row 3. (d) $80,000 second year, $50,000 every two years thereafter. Assume 3 audits ($180,000/7 years). PROJECTED REVENUE REQUIREMENT FOR THE FIRST TWELVE MONTHS OF FRANCHISE AGREEMENT - Row Residential Cart Service Bin Service (g) Roll-Off Service Bulky Item Pickup, Holiday Trees, City wide Cleanups, Special Events, Other TOTAL ANNUAL REVENUE RQMT ATTACHMENT 4 3/13/2012 4-E City of Hermosa Beach Proposing Company: Instructions: Fill in boxes outlined in bold. Mon Tues Wed Thurs Fri Sat 1 Refuse Routes - - 2 Recycling Routes - - 3 Green Waste Routes - - 4 Refuse Bin Routes - - 5 Recycling Bin Routes - - 6 Bulky Item Pickup Routes - - 7 Roll-Off Box Routes - - 8 Scout Vehicle Routes - - 9 Other: _________________- - 10 Other: _________________- - 11 Total - - - - - - - - Mon Tues Wed Thurs Fri Sat 12 Refuse/Recycling Routes - - 13 Green Waste Routes - - 14 Refuse Bin Routes - - 15 Recycling Bin Routes - - 16 Bulky Item Pickup Routes - - 17 Roll-Off Box Routes - - 18 Scout Vehicle Routes - - 19 Other: _________________- - 20 Other: _________________- - 21 Total - - - - - - - - (1) For example, 8, 9 or 10 hours per day. (2) Total Route Days/Week multiplied by Hours Per Route per Day. (3) 1 or 2 persons. PROJECTED ROUTES AND ROUTE HOURS Option 2: Single Stream Hours per Route Per Day (1) Total Route Hours Per Week (2) Routes Per Day Total Route Days/Week Row Route Type Routes Per Day Total Route Days/Week Crew Size Per Truck (3) Crew Size Per Truck (3) - Option 1: Cart System Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. Row Route Type Hours per Route Per Day (1) Total Route Hours Per Week (2) ATTACHMENT 4 3/13/2012 4-F City of Hermosa Beach Proposing Company: Annual Dollar Amount Percentage of Total Costs Annual Dollar Amount Percentage of Total Costs 1 Labor 0%0% 2 Fuel 0%0% 3 Equipment 0%0% 4 Disposal 0%N/A (1)N/A 5 All Other 0%0% 6 Total -$ 0%-$ 0%-$ 7 Roll-Off Box Disposal Costs from Attachment 3-I, Row 8:-$ 8 Total Cost Based Upon This Attachment 4-F:-$ 9 Total Projected Revenue Requirement Based Upon Attachment 4-A, Row 19, last column (should agree to Row 8):-$ 10 Difference (explain any significant difference in proposal):-$ (1) Roll-off disposal/transformation is compensated on a per ton basis. Annual Dollar Amount Percentage of Total Costs Annual Dollar Amount Percentage of Total Costs 11 Labor 0%0% 12 Fuel 0%0% 13 Equipment 0%0% 14 Disposal 0%N/A (1)N/A 15 All Other 0%0% 16 Total -$ 0%-$ 0%-$ 17 Roll-Off Box Disposal Costs from Attachment 3-I, Row 8:-$ 18 Total Cost Based Upon This Attachment 4-F:-$ 19 Total Projected Revenue Requirement Based Upon Attachment 4-B, Row 8, last column (should agree to Row 18):-$ 20 Difference (explain any significant difference in proposal):-$ (1) Roll-off disposal/transformation is compensated on a per ton basis. Row Cost Components All Services Except Roll-Off Roll-Off Total Option 2: Single Stream Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. COST COMPONENTS AND COST WEIGHTINGS - Instructions: Fill in boxes outlined in bold. Percentages should automatically calculate. Row Cost Components All Services Except Roll-Off Roll-Off Total Option 1: Cart System ATTACHMENT 4 3/13/2012 4-G City of Hermosa Beach Proposing Company: Commingled Recycling Greenwaste C&D Transformation Mixed Waste Processing Food Waste Other (1)Total Diverted 1 Residential Cart Refuse - - - 2 Residential Cart Recyclables - - - 3 Residential Cart Greenwaste - - - 4 Bin Refuse - - - 5 Bin Recyclables - - - 6 Roll-Off Service - - - 7 Holiday Trees / Bulky Items / Citywide Cleanups / Special Events - - - 8 Total - - - - - - - - - - Commingled Recycling Greenwaste C&D Transformation Mixed Waste Processing Food Waste Other (1)Total Diverted 9 Residential Single Stream Can - - - 10 Residential Cart Greenwaste - - - 11 Bin Refuse - - - 12 Bin Recyclables - - - 13 Roll-Off Service - - - 14 Holiday Trees / Bulky Items / Citywide Cleanups / Special Events - - - 15 Total - - - - - - - - - - (1) Describe "Other" programs below: Option 2: Single Stream Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. Row Waste Stream Annual Tons Collected (from 4D, row 19) Annual Tons Diverted Tons Diverted as % of Tons Collected TONNAGE DIVERSION PLAN - Instructions: Fill in boxes outlined in bold. Confirm automatic calculations. Proposers must demonstrate how they will reach their proposed diversion rate for hauler-collected waste. Row Waste Stream Annual Tons Collected (from 4C, row 19) Annual Tons Diverted Tons Diverted as % of Tons Collected Option 1: Cart System March 13, 2012 5-1 City of Hermosa Beach Failure to complete and submit this form will deem the proposer’s proposal incomplete and nonconforming. Attachment 5 Anti-Collusion Affidavit Proposer as a part of this proposal submits the following affidavit: The undersigned deponent, of lawful age, being duly sworn, upon his oath deposes and says: That he has lawful authority to execute the within and foregoing proposal; that he has executed the same by subscribing his name hereto under oath for and on behalf of said proposer; that proposer has not directly or indirectly entered into any agreement, express or implied, with any proposer or proposers, having for its object the controlling of the price or amount of such proposal or proposals, the limiting of the proposals or proposers, the parceling or farming out to any proposer or proposers or other persons of any part of the contract or any part of the subject matter of the proposal or proposals or of the profits thereof, and that he has not and will not divulge the sealed Proposal to any person whomsoever, except those having a partnership or other financial interest with him in said proposal or proposals, until after the said sealed proposal or proposals are opened. Deponent further states that the proposer has not been a party to any collusion among proposers in restraint of freedom of competition; by agreement to make a proposal at a fixed price or to refrain from submitting a proposal; or with any City official or employee as to quantity, quality, or price in the prospective contract; or in any discussions between proposers and any City official concerning exchange of money or other things of value for special consideration in the letting of a contract; that the proposer has not paid, given or donated or agreed to pay, give or donate to any official, officer or employee of the City directly or indirectly, in the procuring of the award of contract pursuant to this proposal. Executed under penalty of perjury on this day of , at . SIGNED BY TITLE COMPANY___________________________________ March 13, 2012 City of Hermosa Beach Attachment 6 Draft Integrated Solid Waste Management Services Agreement DRAFT AGREEMENT BETWEEN CITY OF HERMOSA BEACH AND _______________________ FOR INTEGRATED SOLID WASTE MANAGEMENT SERVICES * * * March 13, 2012 Draft, March 13, 2012 i City of Hermosa Beach AGREEMENT BETWEEN CITY OF HERMOSA BEACH AND __________________________ FOR INTEGRATED SOLID WASTE MANAGEMENT SERVICES TABLE OF CONTENTS Page RECITALS 1 ARTICLE 1.................................................................................................................................................3  DEFINITIONS.......................................................................................................................................................................... 3  1.1 AB 939 ...................................................................................................................................................................... 3  1.2 AFFILIATE ................................................................................................................................................................. 3  1.3 BILLINGS ................................................................................................................................................................... 4  1.4 BIN ............................................................................................................................................................................ 4  1.5 BIN SERVICE ............................................................................................................................................................. 4  1.6 BULKY ITEMS ............................................................................................................................................................ 4  1.7 CALRECYCLE ............................................................................................................................................................ 5  1.8 CAN .......................................................................................................................................................................... 5  1.9 CAN SERVICE ............................................................................................................................................................ 5  1.10 CART .................................................................................................................................................................... 5  1.11 CITY ..................................................................................................................................................................... 5  1.12 CITY MANAGER ................................................................................................................................................... 5  1.13 COLLECT/COLLECTION ...................................................................................................................................... 5  1.14 COMMERCIAL ...................................................................................................................................................... 6  1.15 COMMERCIAL PREMISES ...................................................................................................................................... 6  1.16 CONTRACTOR ...................................................................................................................................................... 6  1.17 CONTRACTOR'S PROPOSAL ................................................................................................................................. 6  1.18 CONTRACTOR COMPENSATION .......................................................................................................................... 6  1.19 CONSTRUCTION AND DEMOLITION DEBRIS ....................................................................................................... 7  1.20 CONTAINER ......................................................................................................................................................... 7  1.21 CPI ....................................................................................................................................................................... 7  1.22 CUSTOMER ........................................................................................................................................................... 7  1.23 DISPOSE/DISPOSAL ............................................................................................................................................. 7  1.24 DISPOSAL SITE(S) ................................................................................................................................................. 7  1.25 DIVERSION ........................................................................................................................................................... 7  1.26 ELECTRONIC WASTE ............................................................................................................................................. 8  1.27 ENVIRONMENTAL LAWS ..................................................................................................................................... 8  1.28 FACILITY .............................................................................................................................................................. 8  1.29 GREEN WASTE ..................................................................................................................................................... 8  1.30 GREEN WASTE PROCESSING FACILITY................................................................................................................ 8  1.31 GROSS RECEIPTS .................................................................................................................................................. 9  Draft, March 13, 2012 ii City of Hermosa Beach 1.32 HAZARDOUS SUBSTANCE.................................................................................................................................... 9  1.33 HAZARDOUS WASTE ........................................................................................................................................... 9  1.34 HOUSEHOLD HAZARDOUS WASTE (“HHW”) ................................................................................................. 10  1.35 MATERIALS RECOVERY FACILITY (“MRF”) ..................................................................................................... 10  1.36 MULTI-FAMILY DWELLING ............................................................................................................................... 10  1.37 PERSON .............................................................................................................................................................. 10  1.38 PREMISES ........................................................................................................................................................... 10  1.39 RATE YEAR ........................................................................................................................................................ 10  1.40 RECYCLE/RECYCLING....................................................................................................................................... 11  1.41 RECYCLABLE MATERIALS .................................................................................................................................. 11  1.42 REFUSE ............................................................................................................................................................... 11  1.43 RESIDENTIAL ..................................................................................................................................................... 11  1.44 RESIDENTIAL PREMISES ..................................................................................................................................... 11  1.45 ROLL-OFF BOX ................................................................................................................................................... 12  1.46 SINGLE FAMILY DWELLING ............................................................................................................................... 12  1.47 SOLID WASTE .................................................................................................................................................... 12  1.48 SOLID WASTE HANDLING SERVICES ................................................................................................................. 12  1.49 SOURCE SEPARATED .......................................................................................................................................... 12  1.50 STATE ................................................................................................................................................................. 12  1.51 TRANSFORMATION ............................................................................................................................................ 12  1.52 TRANSFER STATION ........................................................................................................................................... 13  1.53 WASTE GENERATOR .......................................................................................................................................... 13  ARTICLE 2...............................................................................................................................................14  GRANT AND ACCEPTANCE OF FRANCHISE ............................................................................................................. 14  2.1 GRANT AND ACCEPTANCE OF FRANCHISE, INDEMNITY OF AWARD ................................................................... 14  2.2 ENFORCEMENT OF EXCLUSIVITY ............................................................................................................................ 14  2.3 EFFECTIVE DATE .................................................................................................................................................... 15  2.4 TERM OF AGREEMENT ............................................................................................................................................ 15  2.5 CITY’S OPTION TO EXTEND TERM.......................................................................................................................... 15  2.6 REPRESENTATIONS AND WARRANTIES OF CONTRACTOR .................................................................................... 15  2.7 CONDITIONS TO EFFECTIVENESS OF AGREEMENT ................................................................................................. 17  2.8 DELEGATION OF AUTHORITY ................................................................................................................................ 17  2.9 LIMITATIONS TO SCOPE.......................................................................................................................................... 18  2.10 CITY'S RIGHT TO DIRECT CHANGES ................................................................................................................. 19  2.10.1 General ..................................................................................................................................................... 19  2.10.2 New Diversion Programs ......................................................................................................................... 20  2.11 OWNERSHIP OF SOLID WASTE .......................................................................................................................... 20  2.12 CONTRACTOR STATUS ....................................................................................................................................... 21  2.13 CONTRACTOR AUTHORIZATION ....................................................................................................................... 21  2.14 PERMITS AND LICENSES .................................................................................................................................... 22  ARTICLE 3...............................................................................................................................................23  FEES PAID TO THE CITY ................................................................................................................................................... 23  3.1 CONTRACTING FEE ................................................................................................................................................ 23  3.2 COLLECTOR FEE ..................................................................................................................................................... 23  3.3 ADMINISTRATIVE FEE ............................................................................................................................................ 23  3.4 AB 939 FEE ............................................................................................................................................................. 23  3.5 TIMING AND SUBMITTAL OF MONTHLY FEE PAYMENTS ...................................................................................... 24  3.6 FUTURE FEES .......................................................................................................................................................... 24  Draft, March 13, 2012 iii City of Hermosa Beach ARTICLE 4...............................................................................................................................................25  DIRECT SERVICES .............................................................................................................................................................. 25  4.1 REFUSE .................................................................................................................................................................... 25  4.1.1 General .......................................................................................................................................................... 25  4.1.2 Residential Cart/Can Refuse Collection ........................................................................................................ 25  4.1.3 Refuse Cart Overage ..................................................................................................................................... 26  4.1.4 Walk-Out Service .......................................................................................................................................... 27  4.1.5 Bin Refuse Collection .................................................................................................................................... 27  4.1.6 Commercial Premises Cart Service ............................................................................................................... 28  4.1.7 Overflowing Bins and Carts ......................................................................................................................... 28  4.1.8 Temporary Bin Service .................................................................................................................................. 29  4.1.9 Scout Vehicles ............................................................................................................................................... 29  4.1.10 Bin Push-out Service ................................................................................................................................ 29  4.1.11 Locking Bins ............................................................................................................................................. 30  4.1.12 Roll-off Box Service .................................................................................................................................. 30  4.1.13 Extra Assistance in High Solid Waste Generating Commercial Areas .................................................... 30  4.1.14 Shared Downtown Solid Waste Container Enclosure and Porter Service ............................................... 31  4.1.15 On-Call Bulky Item Pickup ...................................................................................................................... 33  4.1.16 Bulky Item Diversion ............................................................................................................................... 33  4.1.17 Disposal of Electronic and Other Special Wastes ..................................................................................... 34  4.1.18 Optional On-Call Household Hazardous Waste Collection and Disposal ............................................... 34  4.1.19 Food Waste Program Option .................................................................................................................... 34  4.1.20 Annual Document Shred Day ................................................................................................................. 34  4.2 RECYCLING ............................................................................................................................................................. 35  4.2.1 Residential Cart Recycling Collection .......................................................................................................... 35  4.2.2 Commercial Recyclables Collection ............................................................................................................... 35  4.2.3 Warning Notice ............................................................................................................................................. 36  4.2.4 Marketing and Sale of Recyclable Materials ................................................................................................. 36  4.2.5 Minimum Recycling Requirements .............................................................................................................. 37  4.2.6 Construction and Demolition Debris Diversion ........................................................................................... 37  4.3 GREEN WASTE PROGRAM ...................................................................................................................................... 37  4.3.1 Single Family Green Waste Collection ......................................................................................................... 37  4.3.2 Holiday Tree Collection Program ................................................................................................................. 38  4.3.3 End Uses for Green Waste ............................................................................................................................ 38  4.3.4 Backyard Compost Program ......................................................................................................................... 39  4.4 CART SELECTION, DISTRIBUTION AND EXCHANGES ............................................................................................. 39  4.4.1 Carts .............................................................................................................................................................. 39  4.4.1.1 Residential Container Distribution .......................................................................................................... 39  4.4.1.2 Removal of Existing Containers ............................................................................................................... 40  4.4.1.3 Cart Design Requirements ....................................................................................................................... 40  4.4.1.4 Capacity .................................................................................................................................................... 40  4.4.1.5 Cart Handles ............................................................................................................................................ 41  4.4.1.6 Cart Lid .................................................................................................................................................... 41  4.4.1.7 Cart Colors ............................................................................................................................................... 42  4.4.1.8 Cart Markings .......................................................................................................................................... 42  4.4.2 Cart Performance Requirements ................................................................................................................... 42  4.4.2.1 Cart Load Capacity ................................................................................................................................... 42  4.4.2.2 Cart Durability ........................................................................................................................................ 43  4.4.2.3 Chemical Resistant ................................................................................................................................... 43  4.4.2.4 Stability and Maneuverability ................................................................................................................. 43  4.4.2.5 Lid Performance ....................................................................................................................................... 44  4.4.2.6 Reparability .............................................................................................................................................. 44  4.4.3 Cart Ownership and Maintenance Responsibilities ..................................................................................... 44  Draft, March 13, 2012 iv City of Hermosa Beach 4.4.4 Bins ............................................................................................................................................................... 45  4.4.5 Roll-off Boxes ................................................................................................................................................ 45  4.5 CITY SERVICES ........................................................................................................................................................ 46  4.5.1 City Facilities Collection ............................................................................................................................... 46  4.5.2 City Litter Containers ................................................................................................................................... 46  4.5.3 School Facilities Collection ............................................................................................................................ 48  4.5.4 Special Events ............................................................................................................................................... 48  4.5.5 Emergency Collection and Disposal Service ................................................................................................. 49  4.5.6 Abandoned Item Collection ........................................................................................................................... 49  4.5.7 Large Venue Event Assistance, Event Recycling ......................................................................................... 49  4.5.8 Litter Boxes for Non-City-Sponsored Events ................................................................................................ 49  4.5.9 Code Enforcement Assistances ...................................................................................................................... 49  4.5.10 Capacity Guarantee .................................................................................................................................. 49  4.6 OPERATIONS ........................................................................................................................................................... 50  4.6.1 Schedules ....................................................................................................................................................... 50  4.6.1.1 Collection Days and Hours ...................................................................................................................... 50  4.6.1.2 Review of Schedules and Routing ............................................................................................................ 50  4.6.1.3 Missed Pickups ......................................................................................................................................... 50  4.6.2 Vehicles ......................................................................................................................................................... 51  4.6.3 Litter Abatement ........................................................................................................................................... 54  4.6.4 Personnel ....................................................................................................................................................... 55  4.6.5 Identification Required .................................................................................................................................. 56  4.6.6 Fees and Gratuities ....................................................................................................................................... 57  4.6.7 Non-Discrimination ...................................................................................................................................... 57  4.6.8 Routing and Coordination With Street Sweeping Services .......................................................................... 57  4.6.9 Report of Accumulation of Solid Waste; Unauthorized Dumping ............................................................... 57  4.7 TRANSPORTATION OF SOLID WASTE ..................................................................................................................... 57  4.8 APPROVED FACILITIES ........................................................................................................................................... 58  4.9 STATUS OF DISPOSAL SITE ..................................................................................................................................... 58  4.10 DEDICATED ROUTES .......................................................................................................................................... 58  4.11 SERVICE EXCEPTIONS; HAZARDOUS WASTE NOTIFICATIONS ......................................................................... 59  ARTICLE 5...............................................................................................................................................60  OTHER SERVICES ............................................................................................................................................................... 60  5.1 CUSTOMER SERVICE ............................................................................................................................................... 60  5.1.1 Local Office.................................................................................................................................................... 60  5.1.2 Complaint Documentation ............................................................................................................................ 60  5.1.3 Resolution of Customer Complaints ............................................................................................................. 61  5.1.4 Service Liaison/Route Supervisor ................................................................................................................. 61  5.2 EDUCATION AND PUBLIC AWARENESS ................................................................................................................. 62  5.2.1 General .......................................................................................................................................................... 62  5.2.2 Implementation and On-going Education Requirements ............................................................................. 62  5.2.3 Contractor Representative ............................................................................................................................ 64  5.2.4 Community Events ....................................................................................................................................... 64  5.2.5 School Outreach ............................................................................................................................................ 64  5.2.6 Business Outreach ........................................................................................................................................ 64  5.2.7 Multi-Family Outreach ................................................................................................................................ 65  5.2.8 Facility Tours ................................................................................................................................................ 66  5.3 WASTE GENERATION/CHARACTERIZATION STUDIES .......................................................................................... 66  ARTICLE 6...............................................................................................................................................67  CONTRACTOR COMPENSATION AND RATES ......................................................................................................... 67  Draft, March 13, 2012 v City of Hermosa Beach 6.1 GENERAL ................................................................................................................................................................ 67  6.2 INITIAL RATES ........................................................................................................................................................ 67  6.3 SCHEDULE OF FUTURE ADJUSTMENTS ................................................................................................................... 67  6.3.1 Request Submittal ......................................................................................................................................... 67  6.3.2 Approval Process ........................................................................................................................................... 67  6.4 METHOD OF ADJUSTMENTS ................................................................................................................................... 68  6.4.1 General .......................................................................................................................................................... 68  6.4.2 Cost Components for Rate Adjustment Indices ............................................................................................ 68  6.4.3 Rate Adjustment Steps ................................................................................................................................. 69  6.5 EXTRAORDINARY ADJUSTMENTS ........................................................................................................................... 70  6.6 REDELIVERY/RETURN TRIP FEE ............................................................................................................................ 70  6.7 CUSTOMER BILLING AND CONTRACTOR COMPENSATION ................................................................................... 71  6.7.1 Residential Customers Receiving Individual-Unit Service ............................................................................ 71  6.7.2 Permanent Bin and Roll-Off Box Customers ................................................................................................ 71  6.7.3 Temporary Services Billing ........................................................................................................................... 71  6.7.4 Contractor’s Invoices .................................................................................................................................... 71  6.7.5 Billing Disputes ............................................................................................................................................ 72  6.7.6 Delinquent Accounts .................................................................................................................................... 72  6.7.7 Customer Billing Adjustments ..................................................................................................................... 73  6.7.8 Exemption from Service ................................................................................................................................ 73  REVIEW OF SERVICES AND PERFORMANCE ............................................................................................................ 75  7.1 PERFORMANCE REVIEW MEETING ......................................................................................................................... 75  7.2 PERFORMANCE SATISFACTION SURVEY ................................................................................................................ 76  7.3 ROUTE AUDIT ......................................................................................................................................................... 77  ARTICLE 8...............................................................................................................................................79  RECORDS, REPORTS AND INFORMATION REQUIREMENTS ............................................................................. 79  8.1 GENERAL ................................................................................................................................................................ 79  8.2 RECORDS ................................................................................................................................................................ 79  8.2.1 General .......................................................................................................................................................... 79  8.2.2 Financial Records .......................................................................................................................................... 80  8.2.3 Solid Waste Records ...................................................................................................................................... 80  8.2.4 CERCLA Defense and Disposal Records ...................................................................................................... 81  8.2.5 Other Programs' Records ............................................................................................................................. 82  8.2.6 Audit ............................................................................................................................................................. 82  8.2.7 Payments and Refunds ................................................................................................................................. 83  8.3 REPORTS ................................................................................................................................................................. 83  8.3.1 Report Formats and Schedule ....................................................................................................................... 83  8.3.2 Monthly Reports ........................................................................................................................................... 84  8.3.3 Annual Report .............................................................................................................................................. 84  8.3.4 Financial Report ............................................................................................................................................ 85  8.4 REPORTING ADVERSE INFORMATION .................................................................................................................... 85  8.5 RIGHT TO INSPECT RECORDS ................................................................................................................................. 86  8.6 FAILURE TO REPORT ............................................................................................................................................... 86  ARTICLE 9...............................................................................................................................................87  INDEMNIFICATION, INSURANCE, BOND AND LETTER OF CREDIT ............................................................... 87  9.1 DEFENSE OF AGREEMENT ...................................................................................................................................... 87  9.2 INDEMNIFICATION ................................................................................................................................................. 87  9.3 HAZARDOUS SUBSTANCES INDEMNIFICATION ..................................................................................................... 88  9.4 AB 939 INDEMNIFICATION AND GUARANTEE ...................................................................................................... 90  9.5 INSURANCE............................................................................................................................................................. 90  Draft, March 13, 2012 vi City of Hermosa Beach 9.6 FAITHFUL PERFORMANCE BOND ........................................................................................................................... 96  9.7 FAITHFUL PERFORMANCE LETTER OF CREDIT ...................................................................................................... 96  9.8 FORFEITURE OF PERFORMANCE BOND .................................................................................................................. 96  9.9 FORFEITURE OF LETTER OF CREDIT ....................................................................................................................... 97  9.10 PERFORMANCE SECURITY BEYOND SERVICE TERM .......................................................................................... 97  ARTICLE 10.............................................................................................................................................98  CITY'S RIGHT TO PERFORM SERVICE ......................................................................................................................... 98  10.1 GENERAL ........................................................................................................................................................... 98  10.2 BILLING AND COMPENSATION TO CITY DURING CITY'S POSSESSION ............................................................. 99  10.3 CITY'S RIGHT TO RELINQUISH POSSESSION ...................................................................................................... 99  10.4 CITY'S POSSESSION NOT A TAKING ................................................................................................................ 100  10.5 DURATION OF CITY'S POSSESSION .................................................................................................................. 100  ARTICLE 11...........................................................................................................................................101  DEFAULT, REMEDIES AND LIQUIDATED DAMAGES .......................................................................................... 101  11.1 EVENTS OF DEFAULT ....................................................................................................................................... 101  11.2 RIGHT TO TERMINATE UPON DEFAULT AND RIGHT TO SPECIFIC PERFORMANCE ....................................... 103  11.3 LIQUIDATED DAMAGES ................................................................................................................................... 104  11.4 EXCUSE FROM PERFORMANCE ........................................................................................................................ 109  11.4.1 Force Majeure ......................................................................................................................................... 109  11.4.2 Labor Unrest .......................................................................................................................................... 109  11.4.3 Procedures In Event of Excused Performance ........................................................................................ 110  11.5 NOTICE, HEARING AND APPEAL OF CITY BREACH ........................................................................................ 110  11.6 ASSURANCE OF PERFORMANCE ...................................................................................................................... 111  ARTICLE 12...........................................................................................................................................112  MISCELLANEOUS PROVISIONS .................................................................................................................................. 112  12.1 RELATIONSHIP OF PARTIES ............................................................................................................................. 112  12.2 COMPLIANCE WITH LAW ................................................................................................................................ 112  12.3 GOVERNING LAW ............................................................................................................................................ 112  12.4 JURISDICTION ................................................................................................................................................... 112  12.5 ASSIGNMENT ................................................................................................................................................... 113  12.6 CONTRACTING OR SUBCONTRACTING ............................................................................................................ 115  12.7 BINDING ON ASSIGNS ...................................................................................................................................... 115  12.8 COOPERATION IN PREPARATION FOR TERMINATION OR EXPIRATION OF CONTRACT ................................. 115  12.9 PARTIES IN INTEREST ....................................................................................................................................... 116  12.10 WAIVER ........................................................................................................................................................... 116  12.11 CONTRACTOR'S INVESTIGATION ..................................................................................................................... 117  12.12 CONDEMNATION ............................................................................................................................................. 117  12.13 NOTICE ............................................................................................................................................................ 117  12.14 REPRESENTATIVES OF THE PARTIES ................................................................................................................ 118  12.15 CITY FREE TO NEGOTIATE WITH THIRD PARTIES ........................................................................................... 118  12.16 COMPLIANCE WITH MUNICIPAL CODE .......................................................................................................... 118  12.17 PRIVACY ........................................................................................................................................................... 119  12.18 PROPRIETARY INFORMATION, PUBLIC RECORDS ............................................................................................ 119  12.19 ENTIRE AGREEMENT ....................................................................................................................................... 119  12.20 SECTION HEADINGS ........................................................................................................................................ 119  12.21 REFERENCES TO LAWS AND OTHER AGREEMENTS ........................................................................................ 120  12.22 INTERPRETATION ............................................................................................................................................. 120  12.23 AGREEMENT .................................................................................................................................................... 120  Draft, March 13, 2012 vii City of Hermosa Beach 12.24 SEVERABILITY .................................................................................................................................................. 120  12.25 EXHIBITS .......................................................................................................................................................... 120  12.26 ATTORNEYS’ FEES ............................................................................................................................................ 120  Exhibits 1. Contractor’s Proposal 2. Initial Maximum Rates 3. Example Rate Adjustment Formula 4. City Litter and Recycling Collection Container Map 5. Corporate Guarantee 6. Contractor’s Faithful Performance Bond 7. Notary Certification Draft, March 13, 2012 -1- City of Hermosa Beach AGREEMENT This Agreement for Integrated Solid Waste Management Services (hereinafter the “Agreement”) is entered into this ___ day of ________, 2012, by and between the City of Hermosa Beach, California, (“City”) and _____________ (“Contractor”), for the collection, transportation, recycling, processing, and disposal of solid waste and other services related to meeting the goals and requirements of the California Integrated Waste Management Act. RECITALS WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989 (“AB 939”) (California Public Resources Code Section 49100 et seq.), has declared that it is in the public interest to authorize and require local agencies to make adequate provisions for solid waste handling within their jurisdictions; and, WHEREAS, pursuant to California Public Resources Code Section 49300 and 49500 through 49524 inclusive, the City has determined that the public health, safety, and well-being require that an exclusive franchise be awarded to a qualified company for the collection, transfer and transportation, recycling, processing, and disposal of solid waste and other services related to meeting the diversion goals required by AB 939, and other requirements of the California Integrated Waste Management Act; and, WHEREAS, City declares its intention of maintaining reasonable rates and quality service related to the collection, transfer and transportation, recycling, processing, and disposal of solid waste and other services; and, WHEREAS, in response to a Request for Proposals, Contractor has submitted a proposal to City and City selected the Contractor on the competitive advantages of that proposal over other proposals received by City; and WHEREAS, City and Contractor (“Parties”) hereto desire to enter said Agreement; and, WHEREAS, 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, the Resource Conservation and Recovery Act ("RCRA"), and the Comprehensive Environmental Response, Compensation and Liability Act Draft, March 13, 2012 -2- City of Hermosa Beach ("CERCLA"). City and Contractor desire to leave no doubts as to their respective roles and to memorialize that by 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 from premises in the City, transport for disposal, composting or other processing, and recycling of municipal solid waste which may contain hazardous substances; and further to confirm that as a material inducement to City entering into this Agreement, Contractor has agreed to fully indemnify City in connection with any claims, losses, liabilities, lawsuits or actions 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, and WHEREAS, Contractor has agreed, as part of this Agreement, acting as an independent contractor to provide such personnel, equipment and supplies as are necessary to ensure City complies with the requirements of Public Resources Code Section 49100, et seq., NOW, THEREFORE, in consideration of the premises above stated and the terms, conditions, covenants and agreements contained herein, the Parties do hereby agree as follows: Draft, March 13, 2012 -3- City of Hermosa Beach ARTICLE 1 DEFINITIONS The terms used in this Agreement shall have the meaning set forth in this Article 1. In the event a term is not defined in this Article 1, then it shall have the meaning set forth in the Hermosa Beach Municipal Code or in Division 30, Part 1, Chapter 2 of the California Public Resources Code (with precedence given to definitions in the Hermosa Beach Municipal Code over conflicting definitions contained in the Public Resources Code). Except as provided in Article 1, words beginning with lower case letters are being used with their common ordinary meanings, not as defined terms. Otherwise, the following capitalized words and terms shall have the following meanings: 1.1 AB 939 "AB 939" means the California Integrated Waste Management Act of 1989 (California Public Resources Code Section 40000 et seq.), as it may be amended from time to time. 1.2 Affiliate "Affiliate" means all businesses (including corporations, limited and general partnerships and sole proprietorships) which are directly or indirectly related to Contractor by virtue of direct or indirect ownership interest or common management shall be deemed to be "Affiliated with" Contractor and included within the term "Affiliates" as used herein. An Affiliate shall include a business in which Contractor owns a direct or indirect ownership interest, a business 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 Draft, March 13, 2012 -4- City of Hermosa Beach the basis of the percentage of voting interest or value which the ownership interest represents, whichever is greater. 1.3 Billings "Billings" or “Billing” or “Bill” means the statements of charges provided to Customers for services rendered by Contractor. 1.4 Bin “Bin” means a metal Container with hinged lids and wheels with a capacity of less than ten (10) cubic yards. 1.5 Bin Service “Bin Service” means Solid Waste Handling Services in which a Bin is used for the Collection of Solid Waste. 1.6 Bulky Items “Bulky Items” means Solid Waste that cannot and/or would not typically be accommodated within a Cart including specifically: furniture (including chairs, sofas, mattresses, and rugs); appliances (including refrigerators, ranges, washers, dryers, water heaters, dishwashers, plumbing, small household appliances and other similar items, commonly known as “white goods”); yard debris, Green Waste and small pieces of wood limited to one cubic yard of contained material; Electronic Waste; fluorescent bulbs; household batteries; and clothing. Bulky Items do not include car bodies, tires, Construction and Demolition Debris or items requiring more than two (2) persons to remove. Other items not specifically included or excluded above will be Collected provided that they are not more than eight (8) feet in length, four (4) feet in width, or more than one hundred fifty (150) pounds. In the event a question ever 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. Draft, March 13, 2012 -5- City of Hermosa Beach 1.7 CalRecycle “CalRecycle” means the State of California’s Department of Resources Recycling and Recovery, and, as this department was structured prior to January 1, 2010, the California Integrated Waste Management Board, or CIWMB. 1.8 Can “Can” means a plastic Container with a lid and without wheels, with a capacity between 30 and 35-gallons, also referred to as a barrel. Cans may be provided by Customers or by Contractor. 1.9 Can Service “Can Service” refers to Residential service provided in accordance with Section 4.1.2 in which Residential Customers provide their own Containers, such as Cans, bags or boxes, for Refuse Collection due to Cart Collection not being feasible. [OPTION 1] 1.10 Cart “Cart” means a plastic Container with a hinged lid and wheels serviced by an automated or semi-automated truck with a capacity of no less than 32- and no greater than 101-gallons. 1.11 City "City" means City of Hermosa Beach, California, a municipal corporation, and all the territory lying within the municipal boundaries of City as presently existing or as such boundaries may be modified during the term of this Agreement. 1.12 City Manager “City Manager” means the City Manager of the City of Hermosa Beach and his or her designee. 1.13 Collect/Collection "Collect" or "Collection" means to take physical possession, transport, and remove Solid Waste within and from City. Draft, March 13, 2012 -6- City of Hermosa Beach 1.14 Commercial "Commercial" refers to services performed at or for Commercial Premises. 1.15 Commercial Premises "Commercial Premises" means Premises located within the boundaries of the City, occupied or used for any purpose other than residential uses. It includes premises upon which business activity is conducted, including but not limited to retail sales, services, wholesale operations, manufacturing and industrial operations, but excluding Residential Premises upon which business activities are conducted when such activities are permitted under applicable zoning regulations and are not the primary use of the property. Notwithstanding any provision to the contrary herein in the Hermosa Beach Municipal Code or otherwise, for purposes of this Agreement, Premises upon which the following uses are occurring shall be deemed to be Commercial Premises: Assisted Living Facilities, Convalescent Homes, Dormitories, Extended Stay Motels, Group Residential Facilities, Group Care Facilities, Hotels, Hostels, and Motels. 1.16 Contractor "Contractor" means _______________, a corporation organized and operating under the laws of the State of ______________ and its officers, directors, employees, agents, companies and subcontractors, as permitted under Section 12.6. 1.17 Contractor's Proposal "Contractor's Proposal" means the proposal submitted by Contractor to City on _________, 2012 in response to a Request for Proposals dated _________, 2012. While there are provisions contained in Contractor’s Proposal, this Agreement supersedes Contractor’s Proposal and is the final written expression of the Parties’ Agreement. Contractor represents and warrants that all representations set forth in such proposal are true and correct. 1.18 Contractor Compensation "Contractor Compensation" means the revenue received by the Contractor from Customers and the City in return for providing services in accordance with this Agreement. Draft, March 13, 2012 -7- City of Hermosa Beach 1.19 Construction and Demolition Debris "Construction and Demolition Debris" means Solid Waste generated at a Premises that is directly related to construction or demolition activities occurring thereon. 1.20 Container "Container" means any and all types of Solid Waste receptacles, including Carts, Bins and Roll-off Boxes. 1.21 CPI “CPI” means the Consumer Price Index (CUUR0000SA0L1E) for All Urban Consumers (CPI-U), all items less food and energy index – U.S. city average. 1.22 Customer “Customer” means a Person receiving Solid Waste Handling Services from Contractor pursuant to the terms of this Agreement. 1.23 Dispose/Disposal "Dispose” or “Disposal" means the ultimate disposition of Solid Waste Collected by Contractor at a landfill or otherwise in full regulatory compliance. 1.24 Disposal Site(s) "Disposal Site(s)" means the Solid Waste handling Facility or Facilities utilized for the ultimate Disposal of Solid Waste Collected by Contractor. 1.25 Diversion "Diversion" means any combination of waste prevention (source reduction), recycling, reuse and composting activities that reduces waste disposed at landfills, provided such activities are recognized by CalRecycle as Diversion in its determination of the City’s Diversion rate and compliance with AB 939. CalRecycle may limit Diversion considered to be achieved through Transformation/waste-to-energy, use of Green Waste as alternative daily cover (“ADC”) and other activities. Draft, March 13, 2012 -8- City of Hermosa Beach 1.26 Electronic Waste “Electronic Waste” means electronic equipment, including stereos, televisions, computers and monitors, VCRs, microwaves and other similar items commonly known as “brown goods” and “e-waste”. 1.27 Environmental Laws "Environmental Laws" means all federal and state statutes, county, local 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 §9601 et seq.; the Resource Conservation and Recovery Act, 42 USC §6902 et seq.; the Federal Clean Water Act, 33 USC §1251 et seq.; the Toxic Substances Control Act, 15 USC §1601 et seq.; the Occupational Safety and Health Act, 29 USC §651 et seq.; the California Hazardous Waste Control Act, California Health and Safety Code §25100 et seq.; the California Hazardous Substance Account Act, California Health and Safety Code §25300 et seq.; the Porter-Cologne Water Quality Control Act, California Water Code §13000 et seq.; the Safe Drinking Water and Toxic Enforcement Act, California Health and Safety Code §25249.5 et seq.; and Hermosa Beach Municipal Code Chapter 8; as currently in force or as hereafter amended, and all rules and regulations promulgated there under. 1.28 Facility "Facility" means any plant or site, owned or leased and maintained, operated or used by Contractor for purposes of performing under this Agreement. 1.29 Green Waste "Green Waste" means tree trimmings, wood stumps, small pieces of wood, grass cuttings, dead plants, leaves, branches, flowers, plant stocks, and dead trees (not more than six (6) inches in diameter or forty-eight (48) inches in length) and similar materials. 1.30 Green Waste Processing Facility “Green Waste Processing Facility” means a permitted Facility where Green Waste is sorted, mulched or separated for the purposes of Recycling, reuse or composting. Draft, March 13, 2012 -9- City of Hermosa Beach 1.31 Gross Receipts “Gross Receipts” means any and all revenue received from Billings by City or Contractor, and compensation in any form, of Contractor or subsidiaries, parent companies or other Affiliates of Contractor, for the Collection and transportation of Solid Waste pursuant to this Agreement, in accordance with Generally Accepted Accounting Principles, including, but not limited to, Customer fees for Collection of Solid Waste, without subtracting Disposal fees, City fees or other fees or any other cost of doing business. Sales revenue from the sale of Recyclable Materials is excluded from Gross Receipts for the purpose of calculating Collector Fees. 1.32 Hazardous Substance "Hazardous Substance" shall mean any of the following: (a) any substances defined, regulated or listed (directly or by reference) as "Hazardous Substances", "hazardous materials", "Hazardous Waste", "toxic waste", "pollutants" 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 §9601 et seq. (CERCLA); (ii) the Hazardous Materials Transportation Act, 49 USC §1802, et seq.; (iii) the Resource Conservation and Recovery Act, 42 USC §6901 et seq.; (iv) the Clean Water Act, 33 USC §1251 et seq.; (v) California Health and Safety Code §§25115-25117, 25249.8, 25281, 25316, 25501 and 25501.1; (vi) the Clean Air Act, 42 USC §7901 et seq.; and (vii) California Water Code §13050; (b) any amendments, rules or regulations promulgated there under to such enumerated statutes or acts currently existing or hereafter enacted; and (c) any other hazardous or toxic substance, material, chemical, waste or pollutant identified as hazardous or toxic or regulated under any other applicable federal, state or local Environmental Laws currently existing or hereinafter enacted, including, without limitation, friable asbestos, polychlorinated biphenyl’s ("PCBs"), petroleum, natural gas and synthetic fuel products and by- products. 1.33 Hazardous Waste "Hazardous Waste" means all substances defined as Hazardous Waste, acutely Hazardous Waste, or extremely Hazardous Waste by the State of California in Health and Safety Code §25110.02, §25115, and §25117 or in the future amendments to or recodifications of such statutes or identified and listed as Hazardous Waste by the US Draft, March 13, 2012 -10- City of Hermosa Beach Environmental Protection Agency (EPA), pursuant to the Federal Resource Conservation and Recovery Act (42 USC §6901 et seq.), all future amendments thereto, and all rules and regulations promulgated there under. 1.34 Household Hazardous Waste (“HHW”) "Household Hazardous Waste" means Hazardous Waste generated at Residential Premises. 1.35 Materials Recovery Facility (“MRF”) "Materials Recovery Facility" means a permitted Solid Waste Facility where Solid Wastes or Recyclable Materials are sorted or separated for the purposes of Recycling, processing or composting. 1.36 Multi-Family Dwelling "Multi-Family Dwelling" means any building or lot containing five (5) or more dwelling units. Multi-Family Dwelling units generally receive Refuse Collection service through the use of shared Bins, but may use Carts. Service is not dependent upon unit count unless specifically stated. 1.37 Person "Person" means any individual, firm, association, organization, partnership, corporation, business trust, joint venture, the United States, the State of California, Los Angeles County, cities, and special purpose districts. 1.38 Premises "Premises" means any land or building in City where Solid Waste is generated or accumulated. 1.39 Rate Year "Rate Year" means the period July 1 to June 30, for each year during the Term of this Agreement. Draft, March 13, 2012 -11- City of Hermosa Beach 1.40 Recycle/Recycling “Recycle” or "Recycling" means the processing of Recyclable Materials for the purpose of returning them to the economy in the form of raw materials for new, reused, or reconstituted products. The Collection, transportation or Disposal of Solid Waste not intended for, or capable of, reuse is not Recycling. Recycling does not include use of Solid Waste for conversion to energy. 1.41 Recyclable Materials "Recyclable Materials" means Solid Waste that is Source Separated, has some potential economic value, and is set aside, handled, packaged, or offered for Collection in a manner different from Refuse in order to allow it to be processed for Recycling. 1.42 Refuse "Refuse" means putrescible and non-putrescible Solid Waste. 1.43 Residential "Residential" refers to services performed at and for Residential Premises, which include both Single-Family Dwellings and Multi-Family Dwellings. 1.44 Residential Premises “Residential Premises” means Premises upon which dwelling units exist, including, without limitation, Single Family Dwellings, apartments, boarding or rooming houses, condominiums and mobile homes. Notwithstanding any provision to the contrary herein, in the Hermosa Beach Municipal Code, or otherwise, for purposes of this Agreement, Premises upon which the following uses are occurring shall not be deemed to be Residential Premises, and rather shall be deemed to be Commercial Premises: Assisted Living Facilities, Convalescent Homes, Dormitories, Extended Stay Motels, Group Residential Facilities, Group Care Facilities, Hotels, Motels, and any other businesses not specifically listed at which residency is transient in nature and hence should be classified as Commercial Premises as determined by City on a case by case bases. Draft, March 13, 2012 -12- City of Hermosa Beach 1.45 Roll-off Box “Roll-off Box” means Solid Waste Collection Containers of 10 (ten) cubic yards or larger. 1.46 Single Family Dwelling "Single Family Dwelling" means a dwelling unit in a building containing fewer than five (5) Residential dwelling units. Single Family Dwelling units generally receive individual Can or Cart Refuse Collection service, but service is not dependent upon unit count unless specifically stated. 1.47 Solid Waste "Solid Waste" means all discarded putrescible and non-putrescible solid, semisolid, and liquid wastes, including Refuse, Construction and Demolition Debris, Bulky Items, Recyclable Materials, and Green Waste, or any combination thereof which are permitted to be disposed of in a Class III landfill, and which are included in the definition of “Non-hazardous Solid Waste” set forth in the California Code of Regulations. 1.48 Solid Waste Handling Services “Solid Waste Handling Services” means the Collection, transfer, transport, Recycling, processing, and Disposal of Solid Waste. 1.49 Source Separated "Source Separated" means the segregation by the Waste Generator of individual components of Solid Waste, which otherwise would become Refuse or garbage (such as glass bottles, metal cans, newspapers, plastic containers, etc.) into separate Container(s) for the purpose of allowing the Recycling of such materials. 1.50 State “State” means the State of California. 1.51 Transformation “Transformation” means incineration, pyrolysis, distillation, gasification, or biological conversion other than composting. Draft, March 13, 2012 -13- City of Hermosa Beach 1.52 Transfer Station “Transfer Station” means a Facility that receives Solid Waste from Collection vehicles and transfers the material to larger vehicles for transport to landfills and other destinations. Transfer Stations may or may not include MRFs, transferring residual Refuse (Refuse left after the sorting of Recyclable Materials) to landfills and Recyclable Materials, including Green Waste and/or Construction and Demolition debris, to processors, brokers or end-users. 1.53 Waste Generator "Waste Generator" means any Person as defined by the Public Resources Code, whose act or process produces Solid Waste as defined in the Public Resources Code, or whose act first causes Solid Waste to become subject to regulation. Draft, March 13, 2012 -14- City of Hermosa Beach ARTICLE 2 GRANT AND ACCEPTANCE OF FRANCHISE 2.1 Grant and Acceptance of Franchise, Indemnity of Award Subject to the terms and conditions of this Agreement (including but not limited to the exclusions set forth in Section 2.9 hereof) and applicable State laws, and to the rights of State, county and school district facilities to use a Solid Waste enterprise other than Contractor, City hereby grants to Contractor and Contractor hereby accepts from City, for the Term hereof, the exclusive franchise, right and privilege to provide Solid Waste Handling Services at all Residential and Commercial Premises within City (the “Franchise”). 2.2 Enforcement of Exclusivity Contractor shall be responsible for enforcing the exclusivity of this Agreement. City shall have the right to enforce the exclusivity provisions hereof if, in its absolute and sole discretion, it chooses to do so, but shall have no obligation to do so for the benefit of Contractor or otherwise. City additionally shall have the right, but not the obligation, to request that Contractor enforce the exclusivity provisions hereof. Contractor shall have an affirmative obligation to enforce such exclusivity provisions when requested to do so by City. For example, Contractor may be asked to notify City of inappropriately placed Containers and to place warning tags on such Containers. City may direct Contractor to impound such Containers in accordance with the City’s Municipal Code and may be entitled to charge Container owners City-approved fees for such impounding. If Contractor requests that City take administrative, law enforcement, or other legal action to protect Contractor’s exclusive rights, or otherwise enforce the exclusivity of this Agreement (including the adoption of any resolution or ordinance intended to facilitate the enforcement of the exclusive rights granted herein), Contractor shall reimburse City for all administrative, law enforcement, or other legal costs and fees related to any such action. Contractor’s obligation to reimburse City shall not apply to any criminal enforcement by City. Draft, March 13, 2012 -15- City of Hermosa Beach 2.3 Effective Date The “Effective Date” of this Agreement shall be the date which the City Council approves this Agreement. 2.4 Term of Agreement The term of this Agreement (the “Term”) shall be seven (7) years, commencing on January 1, 2013, and expiring December 31, 2019, subject to extension as provided in Section 2.5, as applicable. Notwithstanding the foregoing, the unexcused failure or refusal of Collector to perform any material term, covenant, obligation or condition contained in this Agreement shall give rise to the right, in favor of City, for earlier termination of this Agreement for cause in accordance with the procedures elsewhere contained herein. 2.5 City’s Option to Extend Term City shall have the sole option to extend the Term of this Agreement up to twenty-four (24) months following the Agreement Term under Section 2.4. The City may, upon at least ninety-day (90-day) advance written notice to the Contractor prior to the expiration of the Term of this Agreement, exercise this extension option. If City provides this extension notice, the Agreement will automatically renew monthly, up to a maximum of twenty-four (24) months. This extension period shall terminate, upon the earlier of: (i) the expiration of the aforementioned twenty-four (24) months, or (ii) the date City instructs Contractor that the contact will end, provided written notice of termination is provided to Contractor by City at least ninety (90) days prior to this termination date. 2.6 Representations and Warranties of Contractor Contractor hereby covenants, represents, and warrants the following to City for the purpose of inducing City to enter into this Agreement and to consummate the transaction contemplated hereby, all of which shall be true as of the date of this Agreement and as of the Effective Date: a) Contractor is wholly owned by ______________________, which is duly organized and validly existing as a ______________ under the laws of the State of ______________. Draft, March 13, 2012 -16- City of Hermosa Beach b) Neither the execution of this Agreement nor the delivery by Contractor of services nor the performance by Contractor of its obligations hereunder: (1) conflicts with, violates or results in a breach of any applicable law; (2) conflicts with, violates or results in a breach of any term or condition of any judgment, decree, agreement (including, without limitation, the certificate of incorporation of Contractor) or instrument to which Contractor is a party or by which Contractor or any of its properties or assets are bound, or constitutes a default under any such judgment, decree, agreement or instrument; or (3) will result in the creation or imposition of any encumbrance of any nature whatsoever upon any of the properties or assets of Contractor. c) There is no action, suit or other proceeding as of the date of this Agreement, at law or in equity, or to the best of Contractor’s knowledge, any investigation, before or by any court or governmental authority, pending or threatened against Contractor or ______ [parent/guaranteeing company] which is likely to result in an unfavorable decision, ruling or finding which would materially and adversely affect the validity or enforceability of this Agreement or any such agreement or instrument entered into by Contractor or ______ [parent/guaranteeing company] in connection with the transactions contemplated hereby, or which could materially and adversely affect the ability of Contractor to perform its obligations hereunder or which would have a material adverse effect on the financial condition of Contractor or ______ [parent/guaranteeing company] . This provision may be waived by the City acting through its City Manager. d) Contractor has no knowledge of any applicable law in effect as of the date of this Agreement that would prohibit the performance by Contractor of this Agreement and the transactions contemplated hereby. e) Contractor has made an independent investigation, satisfactory to it, of the conditions and circumstances surrounding this Agreement and the work to be performed by it, and is satisfied that those conditions and circumstances will not impair its ability to perform the work and provide the Collection services required by this Agreement. f) The information supplied by Contractor in all submittals made in connection with negotiation and execution of this Agreement, including all materials in Exhibits of this Agreement, and all representations and warranties made by Draft, March 13, 2012 -17- City of Hermosa Beach Contractor throughout this Agreement are true, accurate, correct and complete in all material respects on and as of the Effective Date of this Agreement. Inaccuracies in Contractor’s Proposal, such as material omissions of past and pending litigation as requested under the Request for Proposals through which this Agreement was procured, are grounds for termination of this Agreement. g) Contractor’s representative, designated in Section 5.2.3, shall have authority in all daily operational matters related to this Agreement. City may rely upon action taken by such designated representative as action of Contractor unless the actions taken are not within the scope of this Agreement. 2.7 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: a) Accuracy of Representations. 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. b) Absence of Litigation. There shall be no litigation pending in any court challenging the award of this Franchise to Contractor or the execution of this Agreement or seeking to restrain or enjoin its performance. This provision may be waived by the City, acting through its City Manager. c) Furnishing of Insurance, Bond, and Letter of Credit. Contractor shall have furnished evidence of the insurance, bonds and letter of credit required by Article 9, and shall comply with all ongoing requirements relating thereto. d) Contractor shall have paid the contracting fee to City, as provided in Section 3.1. 2.8 Delegation of Authority The administration of this Agreement by City shall be under the supervision and direction of City Manager's office and the actions specified in this Agreement, unless otherwise stated, shall be taken by the City Manager. This section shall in no way be interpreted to obviate required City Council action if so provided in the Hermosa Beach Municipal Code. Draft, March 13, 2012 -18- City of Hermosa Beach 2.9 Limitations to Scope Notwithstanding any provision to the contrary contained herein, the exclusive franchise, right and privilege to provide Solid Waste Handling Services at Premises within City granted to Contractor by this Agreement specifically excludes the following services, which services may be provided by Persons other than Contractor and which may be the subject of other permits, licenses, franchises or agreements issued or entered by City: a) The sale or donation of Source-Separated Recyclable Material by the Waste Generator to any Person or entity other than Contractor; provided, however, if the Generator is required to pay monetary or non-monetary consideration for the Collection, transportation, transfer, or processing of Recyclable Material, even if the Generator receives a reduction or discount in price (or in other terms of the consideration the Generator is required to pay), the transaction shall not be considered a sale or donation; b) Solid Waste, including Recyclable Materials and Green Waste, which is removed from any Premises by the Waste Generator, and which is transported personally by such Generator (or by his or her full-time employees) to a processing or Disposal Facility in a manner consistent with all applicable laws and regulations; c) Green Waste removed from a Premises by a gardening, landscaping, or tree trimming contractor, utilizing its own equipment, as an incidental part of a total service offered by that contractor, rather than as a hauling service; d) The Collection, transfer, transport, Recycling, processing, and disposal of animal remains from slaughterhouse or butcher shops for use as tallow; e) The Collection, transfer, transport, Recycling, processing, and disposal of by- products of sewage treatment, including sludge, sludge ash, grit and screenings; f) The Collection, transfer, transport, Recycling, processing, and disposal of Hazardous Substances, Hazardous Waste, Household Hazardous Waste and radioactive waste regardless of its source; g) The Collection transfer, transport, Recycling, processing, and Disposal of Construction and Demolition Debris; Draft, March 13, 2012 -19- City of Hermosa Beach h) The Collection of Refuse and/or Recyclables from public litter Containers (see Section 4.5.2 and Exhibit 4); i) The Collection, transfer, transport, Recycling, processing, and Disposal of Solid Waste generated from City-owned and/or operated premises, public works projects, City-sponsored events or other City-related activities, by City through City officers or employees in the normal course of their City employment; and, j) Solid Waste Handling Services for governmental agencies other than City, which may have facilities in City, but over which City has no jurisdiction in connection with the regulation of Solid Waste. 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, future enactments or developing legal trends 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. 2.10 City's Right to Direct Changes 2.10.1 General City may direct Contractor to perform additional services (including new Recycling or other Diversion programs, additional Solid Waste processing, etc.) or modify the manner in which it performs existing services or Bills for services. Pilot programs and innovative services which may entail new Collection methods, and different kinds of services and/or new requirements for Waste Generators are included among the kinds of changes which City may direct. Contractor acknowledges that State law may increase the Diversion requirement during the term of this agreement and Contractor agrees to propose services to meet such Diversion requirements. Contractor shall be entitled to an adjustment in its Contractor Compensation for providing such additional or modified services, including a profit factor equal to ten percent (10%) of the incremental cost of such additional or modified services. City may utilize cost components included in the Draft, March 13, 2012 -20- City of Hermosa Beach Contractor’s Proposal in calculating equitable rate adjustments. If City and Contractor cannot agree on compensation for new or additional services within ninety (90) days from the date City first requests a proposal from Contractor, then City may contract with other parties for such services, which shall be considered exempt from the exclusivity provisions of Section 2.1. 2.10.2 New Diversion Programs Contractor shall present, within thirty (30) days of a request to do so by City, a proposal to provide additional or expanded Diversion services. The proposal shall contain a complete description of the following: • Collection methodology to be employed (equipment, manpower, etc.). • Equipment to be utilized (vehicle number, types, capacity, age, etc.). • Labor requirements (number of employees by classification). • Type(s) of Containers to be utilized. • Type(s) of material to be Collected. • Provision for program publicity/education/marketing. • One-year projection of the financial results of the program's operations in an operating statement format, including documentation of the key assumptions underlying the projections, and the support for those assumptions. 2.11 Ownership of Solid Waste 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 Solid Waste Collected by Contractor in City. Rather, the Parties intend that whatever, if any, title in and to the Solid Waste that is Collected by Contractor which 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. Subject to the provisions of this Agreement, and Draft, March 13, 2012 -21- City of Hermosa Beach unless City exercises its rights to direct the location for Disposal and processing of Solid Waste, Contractor shall have the right to retain, Recycle, process, dispose of, and otherwise use Solid Waste Collected pursuant to the terms hereof in any lawful fashion or for any lawful purpose; and, further, shall have the right to retain any benefit resulting from its right to retain, Recycle, process, dispose of, or reuse the Solid Waste which it Collects. City’s right to redirect Solid Waste is not intended to impact Contractor’s right to retain Recyclables revenue pursuant to Section 4.2.4 of this Agreement. Ownership of Solid Waste shall transfer to Contractor when Customer places it at point of Collection. Pursuant to Section 4.8, City reserves the right to designate the Solid Waste Facilities, including the Disposal Sites, to be used by Contractor. If City directs Contractor to a Facility other than a Solid Waste Facility chosen by Contractor (or directs Contractor to change the amount of Solid Waste being delivered to a Facility), and in doing so it adversely affects the ability of Contractor to meet either or both of the requirements of Section 4.2.5 and/or Section 9.4, then in this event the City and Contractor shall meet and confer and mutually agree on revised obligations for Sections 4.2.5 and 9.4. In addition, if any such exercise by City serves to significantly change Contractor’s cost of Disposal, processing and transportation of Solid Waste, rates may be equitably adjusted. 2.12 Contractor Status Contractor represents and warrants that it is duly organized, validly existing and in good standing under applicable laws. It is qualified to transact business in the State of California and has the power to own its properties and to carry on its business as now owned and operated and as required by this Agreement. 2.13 Contractor Authorization Contractor represents and warrants that it has the authority to enter into and perform its obligations under this Agreement. The Board of Directors or partners of Contractor (or the shareholders, if necessary) have taken all actions required by law, its articles of incorporation, its bylaws or otherwise to authorize the execution of this Agreement. The Persons signing this Agreement on behalf of Contractor have authority to do so. Contractor shall authorize one employee for the City as a single point of contact for issues arising under this Agreement, and Contractor acknowledges and agrees that City Draft, March 13, 2012 -22- City of Hermosa Beach may expect and assume that this employee’s actions are taken on behalf of and with the full approval of the Contractor. 2.14 Permits and Licenses Contractor shall acquire and maintain all necessary permits and licenses for the Collecting, transporting, processing, and storing of Solid Waste including Recyclables, disposing of Solid Waste, and the Recycling of Recyclables as required under this Agreement. Failure to maintain all required permits shall be deemed a material breach of contract for which City may terminate this Agreement as provided in Section 11.1. Contractor must follow requirements of the Hermosa Beach Municipal Code. Draft, March 13, 2012 -23- City of Hermosa Beach ARTICLE 3 FEES PAID TO THE CITY In addition to any other consideration set forth herein, as part of its consideration for entering into this Agreement, and for the exclusive franchise, right and privilege to provide Solid Waste Handling Services as specified herein, Contractor shall provide the following: 3.1 Contracting Fee Contractor shall pay to City a “Contracting Fee” in a one-time lump sum payment of One Hundred Fifty Thousand Dollars ($150,000) within seven (7) days of execution of this Agreement to reimburse the City for costs it incurred in connection with entering this Agreement. 3.2 Collector Fee In consideration of the exclusive Franchise granted pursuant to this Agreement, the Contractor shall pay to the City a “Collector Fee,” equal to 10% of the Gross Receipts received by Contractor. See Section 3.5 for submittal requirements. 3.3 Administrative Fee To cover the cost of administering and managing the Franchise, the Contractor shall pay to the City an annual Administrative Fee in the amount of Fifty Thousand Dollars ($50,000), one twelfth of which to be paid monthly in accordance with Section 3.5. The Administrative Fee shall be adjusted annually, beginning with the January payment, by the percentage change in the Consumer Price Index for all Urban Customers (CPI-U), all items less food and energy – US City average for the twelve (12) month period ended the prior September. See Section 3.5 for submittal requirements. 3.4 AB 939 Fee In order to support City’s recycling efforts, Contractor shall remit to City an AB 939 Fee in an amount equal to twenty-five cents ($0.25) per Residential Cart/Can Customer per month, and twenty-five cents ($0.25) per cubic yard of Refuse collected for all other Customers, including Multi-Family Bin, Commercial Cart, Bin and Can and Roll-Off Draft, March 13, 2012 -24- City of Hermosa Beach Box Customers, for both permanent and temporary services, but excluding source separated Recyclable Material Collection. See Section 3.5 for submittal requirements. See approved rate schedule for AB 939 fees by service level. An example calculation of the monthly AB 939 Fee for a Bin Customer is as follows: a three (3) cubic yard Bin Collected five (5) times per week will result in an AB 939 fee of $16.25 per month ($0.25 per cubic yard x 3 cubic yards x 5 times per week x 4.33 weeks per month). 3.5 Timing and Submittal of Monthly Fee Payments On or before the fifteenth (15th) day of each month during the Term of this Agreement, Contractor shall remit the Collector Fee and the AB 939 Fee based upon services provided to City the previous month, and one-twelfth of the annual Administrative Fee. If the fees are not paid on or before the fifteenth (15th) day of the month, Contractor shall, along with fee payment, pay the maximum interest rate permitted by law on any balance not paid by the due date. Contractor shall prepare and submit a fee payment statement with each fee payment that includes receipts by sector and supporting fee calculations for each fee. Note that, as the Collector and AB 939 Fees are paid based upon the prior month’s services and receipts, a payment will be due the month following termination of the Agreement. This will not apply to the Administrative Fee, which payable each month beginning January 2013. 3.6 Future Fees In the event that City implements a new fee, Contractor shall be entitled to a rate adjustment in an amount sufficient to recover the fee from Customers. City may elect to have Contractor pay monthly, or on another schedule as City identifies. City may set deadlines and late fees, and additional fees would be subject to audit. Draft, March 13, 2012 -25- City of Hermosa Beach ARTICLE 4 DIRECT SERVICES 4.1 Refuse 4.1.1 General The work to be done by Contractor pursuant to this Agreement shall include, but not be limited to, the furnishing of all labor, supervision, equipment, materials, supplies, and all other items necessary to perform the services required. The enumeration of, and specification of requirements for, particular items of labor or equipment shall not relieve Contractor of the duty to furnish all others, as may be required, whether enumerated elsewhere in the Agreement or not. The work to be done by Contractor pursuant to this Agreement shall be accomplished in a thorough and professional manner so that all Customers are provided reliable, courteous and high-quality Solid Waste Handling Services 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 provided in this section, whether such other aspects are enumerated elsewhere in the Agreement or not. 4.1.2 Residential Cart/Can Refuse Collection Under Option 1: Contractor will supply each Residential Refuse Cart Customer with 96, 64 or 32-gallon Refuse Cart(s), as requested by Customer as described in Section 4.4.1.1. Residential Customers shall be charged based upon the number and size of Refuse Carts requested. Alternative “Can” Service - Residential Customers who cannot accommodate Carts due to space constraints and/or conditions otherwise preventing the use of Carts will continue to receive service using Customer-provided Refuse Containers, such as Cans, bags or boxes, for a flat monthly fee; this form of service shall be called “Can” service. If Contractor and Customer cannot agree on whether Can service is necessary, the City Manager shall make the final determination. Draft, March 13, 2012 -26- City of Hermosa Beach Contractor shall Collect Refuse delivered for Collection in accordance with this section not less than once per week. The designated Collection location of Containers, if disputed by the Customer or the Contractor, shall be determined by the City. Additionally, if in the City’s opinion the existing Collection location is inappropriate, the City may require the Customer and/or the Contractor to relocate the Collection location. Under Option 2: Contractor shall Collect an unlimited quantity of mixed waste once not less than once per week from Customer-provided Containers (such as Cans, boxes or bags). All Solid Waste Collected under this section shall all be processed to recover Recyclables before landfilling. Contractor shall guarantee a minimum of ____% recovery of all Solid Waste Collected under this section. The designated Collection location of Containers, if disputed by the Customer or the Contractor, shall be determined by the City. Additionally, if in the City’s opinion the existing Collection location is inappropriate, the City may require the Customer and/or the Contractor to relocate the Collection location. 4.1.3 Refuse Cart Overage Under Option 1: Residential Cart Customers may periodically generate more Refuse than will fit in the Refuse Cart(s). Residential Customers are therefore entitled to two (2) annual pickups per calendar year of material that does not fit in the Refuse Cart(s) at no additional charge. One pickup shall consist of up to the equivalent of three (3) large bags, boxes or barrels of Refuse. Additionally, Contractor shall Collect all additional Refuse placed out for Collection in the Residential Customer’s own Containers (bags, barrels, etc.) at no additional charge for two (2) weeks beginning each December 26. This service is limited to Refuse that could otherwise be placed in the Refuse Cart, and not Bulky Items which are Collected in accordance with Sections 1.6 and 4.1.15. Draft, March 13, 2012 -27- City of Hermosa Beach Residential Customers may be charged per pickup in accordance with the approved rate schedule for overage pickups above two (2) per year and outside the two-week period beginning December 26. Commercial Customers may request Cart overage Collections in accordance with the approved rate, but are not entitled to free overage collections. Under Option 2: This section will be deleted. 4.1.4 Walk-Out Service Walk-Out Service means that Contractor will remove Refuse, Recyclable and Green Waste Carts and, if applicable, Customer-provided Containers from Customer’s storage area, place them out for Collection, and return Carts and Customer-provided Containers to Customer’s storage area after Collection, ensuring that all doors or gates are closed securely. Contractor shall provide disabled Residential (excluding Bin) Customers with Walk- Out Service at no additional charge. In order to qualify as disabled under this Section, Customers must provide evidence that they are physically unable to move the Containers, such as a doctor’s note, or must otherwise obtain approval to receive such services from the City. Additionally, Walk-Out Service need not be provided if an able- bodied person resides with the disabled Customer. Customers may be asked periodically, but no more than once per year, to sign an affidavit that no able-bodied residents reside at the Premises. Able-bodied Customers may request Walk-Out Service for an additional charge in accordance with the approved rate schedule. 4.1.5 Bin Refuse Collection Contractor shall provide Bin Service to Residential Customers not receiving Cart or Can service, and Commercial Customers. Contractor shall Collect and remove all Refuse that is placed in Bins at least once per week, and more frequently if required to handle the waste generated at the Premises where the Bins are located. City shall make final determination as to the number and size of Containers, and frequency of Collection to be provided to Customers. Special consideration shall be given when determining the pickup areas to ensure that the flow of traffic is not impeded. Draft, March 13, 2012 -28- City of Hermosa Beach Contractor shall provide 1, 1.5, 2, 3, 4, 6 and 8 cubic yard Bins upon request. Contractor will service Bins equipped with compaction devices or “compactors” that attach to the Bins. The provision of the compaction device itself is outside of this Agreement. 4.1.6 Commercial Premises Cart Service Contractor shall offer Collection in 32, 64 or 96-gallon Refuse Carts to Customers at Commercial Premises that do not have space for a Bin. If Contractor and Customer have a disagreement as to whether a Refuse Cart is appropriate, or if City determines the Collection in a Refuse Cart causes health and safety or other concerns, City shall make the final determination as to whether Collection in a Refuse Cart may occur. 4.1.7 Overflowing Bins and Carts Customers that regularly produce more Refuse than their current level of service can accommodate may have their service level increased in accordance with the following procedure. Containers may be considered overflowing if Solid Waste rises above the top of the Container sufficiently that it is likely to fall out of the Container. First Incident in Three Month Period – If more material is placed for Collection than fits in a Containers (unless Collection of overage has been properly arranged under Section 4.1.3), Contractor shall photograph the overflowing Container, Collect the Solid Waste, and send to the Customer (at both the service and billing addresses) the picture and a letter instructing that additional instances may result in an increase in the level of service. Second Incident in Three Month Period – Upon the second event of an overfilled Container (unless Collection of overage has been properly arranged under Section 4.1.3) in a three-month period, Contractor shall photograph the overflowing Container, Collect the Solid Waste, and send to the Customer the picture and a letter instructing that a third incident in that same three month period may result in an increase in the level of service. Third Incident in Three Month Period – Upon the third event of an overfilled Containers (unless Collection of overage has been properly arranged under Section 4.1.3) in a three-month period, Contractor shall photograph the overflowing Container, Collect the Solid Waste, and send to the Customer the picture and a letter requesting that Customer increase its service level. If the Customer declines, Contractor may Draft, March 13, 2012 -29- City of Hermosa Beach petition City to permit Contractor to increase the service level to accommodate the higher demand for service. City approval is required prior to increasing a Customer’s service level without prior Customer consent. 4.1.8 Temporary Bin Service Contractor shall provide exclusive temporary Bin Service to Customers upon request. Contractor must deliver a temporary Bin to a Customer within forty-eight (48) hours of request (Sundays and holidays identified in Section 4.6.1.1 excluded). Rates for temporary Bin Service are listed separately in the approved rate schedule. 4.1.9 Scout Vehicles Scout vehicles are defined as vehicles that transport a Solid Waste Container to and from the point of Collection by a Collection vehicle. Customers receiving scout truck service immediately prior to the start of service under this Agreement will continue to receive this service. Contractor must receive written approval from the City prior to adding any Customer to, or removing any Customer from, the scout route. City’s decision shall be final as to which Customers will or will not receive this service. Contractor may continue to charge existing scout service Customers for this service, if it is operationally required to service the Bin. Other Customers may not be charged for scout service without advance written permission from the City, and such charge will only be approved if the Bin cannot otherwise be positioned for Collection, or if the service is requested by the Customer. 4.1.10 Bin Push-out Service Contractor shall maneuver Customers’ Bins to the point of Collection, and return the Bins to Bin enclosures or other storage locations. Company may only charge a push-out fee, included in the approved rate schedule, if the push-out distance is at least ten (10) feet from the front of the enclosure or other storage location to the point on the Bin closest to the storage location when positioned for Collection, and that this point of Collection is as close to the storage location as operationally feasible. If it is operationally feasible for the route Collection vehicles to Collect at a location close enough that this measurement does not reach ten feet, a fee will not be applied. In accordance with Exhibit 2, if a fee is permitted per this section, it may be applied for each fifty (50) feet the Bin must be moved; charged once for ten (10) to fifty (50) feet, Draft, March 13, 2012 -30- City of Hermosa Beach twice for fifty-one (51) to one hundred (100) feet, etc. Application of this fee to Customers not already being charged is subject to written approval of the City. A push-out and a scout charge may not both be applied for servicing the same Bin. 4.1.11 Locking Bins Contractor shall provide locking Bin Service (including providing the hasp and lock and servicing the lock) to Customers that request such service in accordance with the approved rate schedule. 4.1.12 Roll-off Box Service Contractor shall provide exclusive permanent and temporary Roll-off Box Collection service upon request. Contractor must deliver a temporary Roll-off Box to a Customer within forty-eight (48) hours of request (Sundays and holidays identified in Section 4.6.1.1 excluded). Contractor will provide standard 10, 30 and 40-cubic-yard standard Roll-off Boxes. The provision of compactor Roll-off Boxes, which are enclosed Containers attached to a compaction devise, is not included in this Agreement. Providing service to such compactor Roll-off Boxes is included. Permanent Roll-off Box service shall be Billed at a pull plus dump rate, meaning a flat rate for service plus a per ton rate for the Solid Waste Collected. Temporary Roll-off Box service shall be Billed at a rate inclusive of service and disposal or processing of up to seven (7) tons. Tonnage above seven (7) tons shall be billed at the permanent Roll-off Box per ton rate. Customer may be charged a per ton overweight charge for each ton over ten (10) in any Roll-Off Box load. If Contractor can determine that a load is greater than ten (10) tons prior to Collection, Contractor may instruct Customer to reduce the load to no more than ten (10) tons. 4.1.13 Extra Assistance in High Solid Waste Generating Commercial Areas Areas of the City, particularly the Downtown district, receive a significant increase in Solid Waste disposal on holiday weekends when Collection service might otherwise be Draft, March 13, 2012 -31- City of Hermosa Beach postponed. In the Downtown area, Contractor shall continue Collection despite holidays, shall provide extra pickups as needed to minimize overflowing Containers, and maintain cleanliness in and around Bin enclosures and Solid Waste Containers. Contractor shall proactively work with Customers to plan for surges in Solid Waste generation. Contractor shall work with Customers to minimize overflow from Bins and into enclosures on an ongoing basis. [ADDITONAL ASSISTANCE MAY BE ADDRESSED BASED ON PROPOSAL] 4.1.14 Shared Downtown Solid Waste Container Enclosure and Porter Service Porter Service – Contractor shall Collect all Solid Waste manually from Downtown area businesses that do not subscribe to individual Cart or Bin Refuse Collection service, and transport the Solid Waste to Bins and/or Roll-off Boxes for Collection and processing and/or Disposal by Contractor. Contractor shall supply a small vehicle to access individual businesses and manually Collect Solid Waste from Contractor-provided barrels (32-gallons in size unless otherwise approved by City Manager) using Contractor-provided liners (bags of at least 5 mm in thickness). Contractor shall Collect with sufficient frequency, and shall provide as many barrels and liners, as useful to prevent overflow of barrels. Contractor shall provide personnel and run this “porter” route between 4:00 a.m. to 12:00 p.m. and between 4:00 p.m. and 12:00 a.m. seven days per week, including holidays, with some Customers requiring multiple daily Collections. Contractor and Customers shall work together to adjust these service hours if alternative hours would better meet Customer needs; changes shall be subject to City Manager approval and City Manager shall make a final determination in event of a dispute. Contractor may assess fees for porter service in accordance with the approved rate schedule. This fee shall represent full compensation for vehicle, Container, liners, personnel and all other costs associated with provision of this service. Porter service fee shall be allocated by Contractor among Customers using this porter service, based upon Customer Solid Waste generation. City may adjust Solid Waste Container types and/or service levels, including transitioning to Roll-Off Compactors, with costs being adjusted in accordance with the approved rate schedule. City may request an increase or decrease in the customer base receiving porter service, may add additional enclosures, or make other service adjustments; if such service Draft, March 13, 2012 -32- City of Hermosa Beach changes make a significant impact in the cost of providing service, the porter service fee shall be adjusted to reflect the actual change in costs. Shared Solid Waste Containers in Downtown District – Customers in the Downtown business district receiving porter service share Solid Waste Containers due to space constraints on using individual Collection Containers. Contractor shall determine shared Container Collection costs in accordance with the approved rate schedule and shall allocate the cost to participating Customers based upon usage. This allocated Solid Waste Collection fee shall be identified on the Customer’s invoice separately from the allocated porter service fee. Dispute of Allocation of Porter Service and Shared Collection Costs - If Customer and Contractor dispute the allocation of porter fees or shared Solid Waste Collection costs, Contractor shall provide Solid Waste Collection reports to the City Manager identifying the estimated quantity of Solid Waste Collected by Customer versus total Solid Waste Collected, based upon capacity, and the City Manager’s determination as to the allocation shall be final. Reallocation of these costs among Customers shall be done only upon request by, or with the approval of, the City. Reasons for reallocation may include a significant shift in the waste stream due to a change in mix of Customers or vacancy. Enclosure Access and Cleaning – Contractor shall monitor and control access to the enclosure located at Beach Drive and 11th Street that houses Solid Waste Containers used to service the Downtown area businesses. Additional collection containers, such as for grease collection, may be housed in this enclosure, and access will be provided to Customers paying for the shared Collection service and to third parties hired to provide collection of grease or other materials from the enclosure. Contractor is responsible for enclosure cleanliness and shall steam clean this enclosure, in accordance with all NPDES regulations, reclaiming water, a minimum of three times per week, or more frequently if needed to control cleanliness of enclosure. Contractor is responsible for monitoring and maintaining cleanliness of adjacent areas used to place other Solid Waste Containers, including Recycling Bins. Participation in Shared Enclosure Collection and Porter Service – If there is a dispute between a Customer and Contractor as to whether a business is to participate in porter service and in sharing Collection services and service costs, or if the City Manager otherwise determines a change is warranted for health and safety or other reasons, City Manager shall make the final determination as to participation. Draft, March 13, 2012 -33- City of Hermosa Beach 4.1.15 On-Call Bulky Item Pickup Contractor shall provide Bulky Item pickup service to all Residential Customers (including both Cart and Bin Customers) on a regularly scheduled collection day. Each Residential Customer shall be entitled to two (2) Bulky Item pickups per dwelling unit per calendar year at no additional charge. Customers may put out up to three (3) cubic yards at each pickup. Contractor shall Collect all Bulky Items as defined in Section 1.6 including items referred to as Electronic Waste. The following provisions shall apply to this program: • No single item that cannot be handled by two (2) workers will be accepted. • The following items will not be picked up: Hazardous Substances, Hazardous Waste, including waste oil or anti-freeze. (For the purposes of this section, universal wastes such as fluorescent bulbs, household batteries, and televisions, monitors and other items referred to as Electronic Waste are not considered hazardous and will be Collected by and disposed of in accordance with this section as well as Sections 4.1.16 and 4.1.17 by Contractor.) Residential Customers that exceed the number of free Bulky Item pickups, and all Commercial Customers, may receive Bulky Item Collection under the same terms for a fee, in accordance with the approved rate schedule in Exhibit 2. 4.1.16 Bulky Item Diversion Bulky Items Collected by Contractor in accordance with Section 4.1.15, 4.1.17 and 4.5.6, or otherwise Collected under this Agreement, may not be landfilled or disposed of until the following hierarchy of Diversion efforts has been followed by Contractor: 1) Reuse as is; 2) Disassemble for reuse or Recycling; 3) Recycle; 4) Dispose. Draft, March 13, 2012 -34- City of Hermosa Beach This hierarchy is intended to preclude the use of front or rear loading packer vehicles for Bulky Items, unless the compaction mechanism is not used to compact the Bulky Items, unless such items have been designated for Disposal. 4.1.17 Disposal of Electronic and Other Special Wastes Contractor shall divert waste requiring special handling, such as Electronic Waste Collected in accordance with Sections 4.1.15, 4.1.16 or 4.5.6, or by other means under this Agreement, by taking these goods to a properly permitted Facility, and not by landfilling. Contractor may encourage Customers through public education materials to bring small items requiring special handling, such as fluorescent bulbs or batteries, to a local HHW drop-off center, but will properly process such material received through the provision of services under this Agreement at no additional charge. 4.1.18 Optional On-Call Household Hazardous Waste Collection and Disposal [TO BE COMPLETED BASED ON PROPOSAL] 4.1.19 Food Waste Program Option City reserves the right to require Contractor to provide a Residential and/or Restaurant Food Waste diversion program, with parties to negotiate an applicable rate adjustment for such service at that time. [MAY BE REVISED BASED ON PROPOSAL] 4.1.20 Annual Document Shred Day Contractor will conduct one (1) shredding event per calendar year, on a City-approved day, at a City-provided location at no additional cost. City will inform Contractor of the time at which each event will begin, and each event shall last for 8 (eight) hours. Contractor shall be on-site for a sufficient time before and after the event to set up and clean up. Contractor shall provide staff and equipment to Collect all paper delivered by anyone that resides or operates a business in the City. Contractor will shred paper in manner that guarantees confidentiality and destruction of the documents, and diverts the shredded material from landfilling. Contractor will publicize the event through its mailers, contacting local business groups and placing local ads. Draft, March 13, 2012 -35- City of Hermosa Beach 4.2 Recycling 4.2.1 Residential Cart Recycling Collection Under Option 1: Contractor shall provide all Customers receiving Cart Refuse Collection with a 96, 64 or 32-gallon Cart for Collection of Recyclable Materials (“Recycling Cart(s)”), and shall Collect all Recyclable Materials placed therein for Collection not less than once per week. Contractor shall Collect Recyclable Materials from each Customer on the same day as Customers’ Refuse Cart is Collected. Customers receiving Can Collection under Section 4.1.2 may use hauler-provided Blue Cans (“Recycling Cans”). Recycling collection will be provided at no charge to the Residential Cart/Can Customers. Customers that regularly fill their Recycling Cart(s)/Can(s) may request additional Recycling Cart(s)/Can(s) at no additional charge. Contractor shall have a Recycling program whereby it, at a minimum, Collects all materials that can be recovered at the local processing Facility used by Contractor. Contractor will update public education materials accordingly as new items are added to those recovered by the Facility. Under Option 2: This section would be deleted. 4.2.2 Commercial Recyclables Collection Contractor shall provide Recycling services to Multi-Family Bin and Commercial Customers at rates no higher than 50% of comparable Refuse Collection rates for the same size Container and Collection frequency, in accordance with the approved rate schedule. Contractor shall assist the City in meeting mandatory Commercial Recycling program requirements at no additional charge, including providing reporting that may be required. Contractor shall contact all Bin and permanent Roll-off Box Customers within the first twelve (12) months of the Agreement in an effort to establish Recycling programs. Contractor shall provide a reporting of these contacts, including whether a Recycling program was implemented as a result, and/or if the Customer indicated it already has a Recycling program in place, either through Contractor or a third party, Draft, March 13, 2012 -36- City of Hermosa Beach and any other information that may assist the City in meeting the State’s mandatory Commercial Recycling program requirements. Upon request, Contractor shall provide City with a list of Residential Bin Customers, and all Customers generating the State’s threshold for participation in mandatory Commercial Recycling (currently four-cubic-yards or more of Solid Waste generated per week), that do not subscribe to a Recycling program offered by Contractor or, if known, a third-party. 4.2.3 Warning Notice Contractor shall place a red tag or other warning notice approved by the City on all Refuse, Recyclable Material or Green Waste loads that are contaminated, indicating to the Customer why the load was not Collected and, if applicable, diverted, or if the Recycling or Green Waste Container was sufficiently contaminated that it had to be Collected as Refuse, and providing Contractor’s phone number. For Customers with off-site management such as small apartment buildings, Contractor shall also mail a copy of the warning to the Customer’s Billing address. Contractor shall notify City on a monthly basis of any warning notices issued pursuant to this section, and shall provide copies of such warnings to City upon request. With prior written City authorization, Contractor may remove Recycling and Green Waste Containers from habitual contaminators that have received a total of three (3) warnings on a Container in any six- month period. Recycling and Green Waste Containers will be returned after six (6) months, or upon direction of the City, or if there is a change of occupancy. Contractor will visually inspect the contents of Residential Refuse Carts and, if significant Recyclable Materials are found, leave a notice educating Customer to better separate Recyclable Materials from Refuse. [This paragraph to be deleted under Option 2.] 4.2.4 Marketing and Sale of Recyclable Materials Contractor shall be responsible for marketing and sale of all Recyclable Materials Collected pursuant to this Agreement. Contractor may retain revenue from the sale of Recyclable Materials, and shall report the amount of such revenues to City upon request. Draft, March 13, 2012 -37- City of Hermosa Beach 4.2.5 Minimum Recycling Requirements Contractor shall divert from landfilling a minimum of ______% of all Solid Waste it Collects under this Agreement. Recycling of materials not Collected by the Contractor is not to be counted towards meeting this requirement. For the purposes of this section, diversion includes Recycling, Transformation and other forms of converting Solid Waste into energy to the extent that such diversion is accepted by the State toward meeting the City’s diversion goal under AB 939. 4.2.6 Construction and Demolition Debris Diversion Contractor shall divert a minimum of 70% of all Construction and Demolition Debris Collected. Contractor will bring all loads of mixed Construction and Demolition Debris to a construction and demolition debris processing facility for separation and recovery of this material. 4.3 Green Waste Program 4.3.1 Single Family Green Waste Collection Under Option 1: Contractor shall provide all Customers receiving Cart Refuse Collection who opt to receive Green Waste service with 96, 64 or 32-gallon Cart(s), as requested, for Collection of Green Waste (“Green Waste Cart(s)”). Green Waste service shall only be provided using Carts, not Cans. See Section 4.4.1.1 for Cart distribution. Customers shall be charged for Green Waste Cart Collection based upon the number and size of Green Waste Carts requested in accordance with the approved rate schedule. Contractor shall Collect all Green Waste placed in Green Waste Carts, as well as all Green Waste bundled as set forth below, and put out for Collection by Customers paying for service not less than once per week on the same day as Refuse Collection. Contractor shall, at a minimum, Collect and divert the types of Green Waste defined in Section 1.29. Draft, March 13, 2012 -38- City of Hermosa Beach Contractor shall only be obligated to Collect Green Waste set out for Collection in bundles if bundles are each a maximum of four (4) feet long and eighteen (18) inches in diameter. Under Option 2: Green Waste Collection shall be provided at no additional charge to Customers. Contractor shall only be obligated to Collect Green Waste set out for Collection in bundles if bundles are each a maximum of four (4) feet long and eighteen (18) inches in diameter. [SECTION 4.3.1 TO BE REVISED BASED UPON PROPOSAL] 4.3.2 Holiday Tree Collection Program Contractor shall operate an annual holiday tree Collection program, Collecting all holiday trees placed out for Collection on Collection day by Residential Cart or Bin Customers for a minimum of three weeks following December 25. After this period, trees will be Collected as Bulky Items under Section 1.6. Trees up to six (6) feet in length will be Collected and diverted without Customers needing to cut them. Contractor may request that Customers with larger trees cut the trees to pieces no longer than six (6) feet. In addition to the above curbside program, Contractor shall provide three (3) roll-off boxes for tree drop-off at City-specified locations during the three (3) weeks following December 25. Contractor will divert all holiday trees from landfilling, with the exception of trees that cannot be diverted due to flocking, tinsel or ornaments. 4.3.3 End Uses for Green Waste Contractor shall divert Green Waste materials Collected through weekly Cart and bundle Collection, and holiday tree Collection from Disposal. Contractor must provide end uses for Green Waste that maximize Diversion credits for City according to regulations established by CalRecycle. Green Waste may be used as alternative daily cover at landfills, or “ADC,” only to the extent that the City will get full Diversion credit for its use. Contractor is responsible for monitoring how the Green Waste will be Draft, March 13, 2012 -39- City of Hermosa Beach diverted at selected facilities and for selecting alternative facilities if necessary to ensure full Diversion credit. Failure to do so places the Contractor in default. City has the option, but not obligation, to direct Contractor where to deliver the material. 4.3.4 Backyard Compost Program Contractor shall offer composting bins and worm bins to each Residential Customer that requests one, and bill the Customer a co-pay in an amount to be determined by City. Contractor shall obtain written City approval prior to ordering bins, and City may select the bins. The difference between the amount billed to the Customer and the actual cost of the bin to the Contractor (excluding delivery or other associated costs) shall be reimbursed to Contractor by the City. City may inform Contractor as to an annual cap or overall cap on the number to be distributed. At no additional cost, Contractor shall offer composting classes at least twice per year, and will create and make available a brochure that educates Customers on composting. 4.4 Cart Selection, Distribution and Exchanges 4.4.1 Carts 4.4.1.1 Residential Container Distribution Under Option 1: All Carts and Contractor-provided Cans shall be new at the start of service. Contractor shall mail a return postage paid postcard and information describing the new rate structure and Container options to all Residential Cart Customers. Contractor must obtain City approval of post card and information to be sent prior to distribution. Postcard will provide Customers with an opportunity to select the size and number of Refuse, Recycling and Green Waste Carts to be delivered. If a selection is not made, Customers will receive one 64-gallon Refuse Cart and one 64- gallon Recycling Cart in areas where Customers can generally accommodate 64-gallon Carts, and one 32-gallon Refuse Cart and one 32-gallon Recycling Cart in agreed-upon areas where most Customers are unable to accommodate a larger Cart. No Green Waste Carts will be distributed to Customers who did not request one. Draft, March 13, 2012 -40- City of Hermosa Beach After initial Cart distribution, Customers may request one (1) Cart exchange at no charge within the six (6) months of the distribution, and once per year thereafter. After one (1) exchange per year at no charge, Customers may request Cart exchanges in accordance with the approved rate schedule. One Cart exchange includes all Cart adjustments requested at one time, and multiple Carts and Cart types (Refuse, Recycling, Green Waste) may be exchanged. Under Option 2: Contractor shall mail a return postage paid postcard describing the availability of a Green Waste Container to all Residential Customers. Contractor must obtain City approval of post card and information to be sent prior to distribution. Postcard will provide Customers with an opportunity to request Green Waste service. Green Waste Containers may also request a Green Waste Containers at a later date even if not initially requested. 4.4.1.2 Removal of Existing Containers Upon and after distributing new Refuse, Recycling and Green Waste Carts, Contractor shall remove, and Recycle to the extent possible before Disposing, all Customer- provided Cans, if Customer does not intend to retain the Cans. Contractor shall establish and advertise a system whereby Customers can indicate what Cans should and should not be Collected. Contractor is responsible for all costs associated with Container collection and Disposal or Recycling. Contractor may retain any scrap value received from the Recycling of collected Containers. 4.4.1.3 Cart Design Requirements The Carts shall be manufactured by injection or rotational molding and meet the Cart design and performance requirements as specified below. All Carts selected shall be subject to City approval. 4.4.1.4 Capacity Contractor shall provide Carts in 96-, 64- and 32-gallon sizes for Refuse, Recycling, and Green Waste Carts. Section references to Cart sizes of 32, 64 and 96-gallons are approximate. Acknowledging the different sizes provided by the various Cart Draft, March 13, 2012 -41- City of Hermosa Beach manufacturers, the Carts shall be uniform in appearance and must conform to the following ranges in size:  30 to 35-gallons,  60 to 70-gallons, and  90 to 101-gallons. 4.4.1.5 Cart Handles The Cart handles and handle mounts may be an integrally molded part of the Cart body or molded as part of the lid. The Cart handles will provide comfortable gripping area for pulling or pushing the Cart or lifting the lid. Pinch points are unacceptable. 4.4.1.6 Cart Lid Each Container shall be provided with a lid that continuously overlaps and comes in contact with the Container body or otherwise causes an interface with the Container body that simultaneously: • Prevents the intrusion of rainwater, rodents, birds, and flies; • Prevents the emission of odors; • Enables the free and complete flow of material from the Container during the dump cycle without interference with the material already deposited in the truck body or the truck body itself and its lifting mechanism; • Permits users of the Container to conveniently and easily open and shut the lid throughout the serviceable life of the Container; • The lid (and body) must be of such design and weight that would prevent an empty Container from tilting backward when flipping the lid open; and, • The lid shall be hinged to the Cart body in such a manner so as to enable the lid to be fully opened, free of tension, to a position whereby it may rest against the backside of the Container body. Draft, March 13, 2012 -42- City of Hermosa Beach 4.4.1.7 Cart Colors The Refuse, Recycling and Green Waste Carts will be differentiated by color. The colors shall be colorfast and resistant to fading as a result of weathering or ultraviolet degradation. Color must be uniform within each Container, including replacement Carts distributed throughout the Term. Refuse Carts will be black. Recycling Carts will be blue. Green Waste Carts will be green. 4.4.1.8 Cart Markings Carts shall be hot stamped. All Cart markings must be approved by City prior to ordering Carts. Graphics indicating which materials may and may not be placed in each Cart and instructions on how to properly dispose of HHW, shall be included on the Cart lid. Cart information shall be bilingual in English and Spanish. Labels shall include Contractor’s name and phone number, and the phone number for the proper disposal of HHW and Bulky Items. 4.4.2 Cart Performance Requirements All Carts shall be designed and manufactured to meet the minimum performance requirements described below. 4.4.2.1 Cart Load Capacity Depending on the capacity, the Carts shall have a minimum load capacity as noted below without Container distortion, damage, or reduction in maneuverability or any other functions as required herein. Cart Size (Gallons) Minimum Load Capacity (LBS) 90-101 200 60-70 130 30-35 70 Draft, March 13, 2012 -43- City of Hermosa Beach 4.4.2.2 Cart Durability Carts shall remain durable, and at a minimum, shall meet the following durability requirements to satisfy their intended use and performance, for the term of this Agreement: • Maintain their original shape and appearance; • Be resistant to kicks and blows; • Require no routine maintenance and essentially be maintenance free; • Not warp, crack, rust, discolor, or otherwise deteriorate over time in a manner that will interfere with the intended use; • Resist degradation from ultraviolet radiation; • Be incapable of penetration by biting or clawing of household pets (i.e., dogs and cats); • The bottoms of Cart bodies must remain impervious to any damage that would interfere with the Cart’s intended use after repeated contact with gravel, concrete, asphalt or any other rough and abrasive surface; • All wheel and axle assemblies are to provide continuous maneuverability and mobility as originally designed and intended; and, • Resist degradation by other airborne gases or particulate matter currently present in the ambient air of the City. 4.4.2.3 Chemical Resistant Carts shall resist damage from common household or Residential products and chemicals. Carts, also, shall resist damage from human and animal urine and feces. 4.4.2.4 Stability and Maneuverability Carts shall be stable and self-balancing in the upright position, when either empty or loaded to the maximum design capacity with an evenly distributed load, and with the lid in either a closed or open position. Draft, March 13, 2012 -44- City of Hermosa Beach Carts shall be capable of maintaining the upright position in sustained or gusting winds of up to twenty-five (25) miles per hour as applied from any direction. Carts shall be capable of being easily moved and maneuvered, with an evenly distributed load equal in weight to its maximum design capacity on a level, sloped or stepped surface. 4.4.2.5 Lid Performance Cart lid assemblies shall meet the following minimum requirements: • Prevent damage to the Cart body, the lid itself or any component parts through repeated opening and closing of the lid by residents or in the dumping process as intended; • Remain closed in winds up to twenty-five (25) miles per hour from any direction. All lid hinges must remain fully functional and continually hold the lid in the original designed and intended positions when either opened or closed or any position between the two extremes; and, • Lid shall be designed and constructed such that it prevents physical injury to the user while opening and closing the Cart. 4.4.2.6 Reparability Minor cracks, holes, and other damages to hinges, wheels, axle, hardware, and other component parts shall be readily repairable by Contractor personnel. All repairs must restore the Container to its full functionality to meet the design and performance requirements as set for herein. 4.4.3 Cart Ownership and Maintenance Responsibilities All Carts that are distributed by Contractor under this Agreement remain the property of the Contractor at the end of the Agreement term. The Contractor shall be responsible for Cart repair and maintenance, and replacing lost, stolen or damaged Carts within three (3) business days at no additional charge to the Customer or to the City. Graffiti shall be removed or the Cart replaced within twenty-four (24) hours of request by City or Customers. However, the Contractor may charge, subject to City approval, the Customer for repairing or replacing a Cart if the damage was due to the Customer’s Draft, March 13, 2012 -45- City of Hermosa Beach willful negligence or abuse. In no event shall this charge be greater than the Contractor’s actual cost for replacement parts or the new Cart. 4.4.4 Bins Contractor shall provide Customers with Bins for Collection of Solid Waste. Customers may obtain Bin compactors and Roll-off compactors from either Contractor or a third party; the leasing of such equipment is outside the scope of this Agreement. Contractor shall maintain its Bins in a clean, sound condition free from putrescible residue. Bins shall be constructed of heavy metal, or other suitable, durable material, and shall be watertight and well painted. Wheels, forklift slots, and other appurtenances, which were designed for movement, loading, or unloading of the Bin, shall be maintained in good repair. Contractor shall inspect, and if necessary or requested by the Customer, clean or replace all Containers once per year at no charge. Contractor shall perform cleaning or replacement of Bins more frequently if necessary, in accordance with the approved rate schedule, to prevent a nuisance caused by odors or vector harborage. Customer may request additional cleanings in accordance with the approved rate schedule. Contractor shall remove graffiti at no additional charge from any Bin within twenty-four (24) hours of request by City or Customers. All Bins provided by Contractor shall remain the property of Contractor. Each Bin placed in the City by the Contractor shall have the name and phone number of the Contractor in letters not less than three (3) inches high on the exterior of the Bin so as to be visible when the Bin is placed for use. Contractor shall repaint Bins upon City request. 4.4.5 Roll-off Boxes The Contractor shall provide clean Roll-off Boxes, free from graffiti, equipped with reflectors, and shall have the name and phone number of Contractor in letters not less than three (3) inches high on the exterior of the Roll-off Box so as to be visible when the Container is placed for use. Contractor shall properly cover all open Roll-off Boxes during transport as required by the State Vehicle Code. Graffiti shall be removed within twenty-four (24) hours of request by City or Customers. All Roll-Off Boxes provided by Contractor shall remain the property of Contractor. Draft, March 13, 2012 -46- City of Hermosa Beach 4.5 City Services 4.5.1 City Facilities Collection Contractor shall Collect and dispose of all Refuse, Recyclable and Green Waste material put in Containers for Collection at Premises owned and/or operated by the City now and in the future at no charge, including no charge for locking Bins, scout service, push- out service or other special services. Contractor shall ensure a sufficient number of Solid Waste Containers are provided at all City facility locations to meet Collection needs. Service levels and number of facilities serviced may increase during the Term of this Agreement without any additional compensation paid to the Contractor. Such Premises include, but are not limited to, City Hall, City offices, parks, community facilities, City yard, public litter and Recycling Containers (see Section 4.5.2), and street maintenance operations. Collections shall be scheduled at a time mutually agreed upon by Contractor and City. Construction and demolition debris collected from City facilities and projects must be processed in accordance with Section 4.2.6 for maximum diversion credit at no additional charge. Street sweepings, as placed in a Container at the City yard by the street sweeping company, shall be collected and Disposed by the Contractor at no additional charge. Contractor shall provide in-office Recycling Containers at all City facilities, including but not limited to the fire station and community center, upon request, including desk- side Recycling Containers and larger cans for Collection in common areas. 4.5.2 City Litter Containers Prior Consolidated-Serviced City Litter Containers Beginning January 1, 2013, Contractor shall service all City Refuse and Recycling public litter Containers identified in Exhibit 4 as Recycling and Refuse Containers previously managed by Consolidated at the following minimum frequencies: A. At Least Once Per Day - Collect all Refuse Containers, between Memorial Day weekend and Labor Day, located along the beach, along Pier Avenue west of Ardmore, and in the Downtown Pier area between 10th Street and 15th Street. Draft, March 13, 2012 -47- City of Hermosa Beach B. At Least Twice Per Week – Collect all Recycling Containers, between Memorial Day weekend and Labor Day, located along the beach, along Pier Avenue west of Ardmore, and in the Downtown Pier area between 10th Street and 15th Street. C. At Least Once Per Week – Above referenced Containers from after Labor Day until immediately before Memorial Day weekend, and all other Refuse and Recycling Containers. D. Holiday Service – Contractor’s servicing of all City Litter Containers includes servicing on holidays, with the exception that, until July 1, 2013, Athens will continue to Collect on holidays from the Strand Containers from Herondo to 10th Street and from 15nd to 35nd Street, while Contractor will provide all other servicing of these Containers as noted above. See “G” below. Athens and True Green-Serviced Litter Containers Beginning July 1, 2013, Contractor shall assume Collection responsibility for all Refuse and Recycling public litter Containers identified in Exhibit 4 as serviced by other parties (True Green and Athens – see Exhibit 4 for identification of specific Containers); the third-party Collection agreements expire June 30, 2013. These Containers shall be Collected at the following minimum frequencies: E. At Least Five Days per Week - Containers on pier. F. At Least Seven Days per Week – All other City litter Containers previously serviced by Athens and True Green. G. Holidays - Athens will continue to collect on holidays from the Strand Containers from Herondo to 10th Street and from 15nd to 35nd Street until June 30, 2013, while Contractor Collects on all other days. Beginning July 1, 2013, Contractor shall Collect from these Containers on holidays as well. City will provide Containers. Contractor shall provide all liners necessary to provide Collection service. Contractor is responsible for additional Collections as necessary to prevent Container overflow at no additional charge, including more frequent Collections on holiday weekends. City may add additional Recycling Container Collections at no additional charge; a Recycling Container may be paired with each litter Container in distribution. City may increase the number of Refuse Containers to Draft, March 13, 2012 -48- City of Hermosa Beach be Collected by Contractor up to 10% above the number included in Exhibit 4 at no additional charge. Contractor and City shall negotiate in good faith for the servicing of additional Containers above this limit, in the future at the request of City. City reserves the right to have a third party service additional Containers, both prior to July 1, 2013 and subsequently. Solid Waste Collected by third-parties from City public Refuse and Recycling Containers is delivered to the City facilities for processing and Disposal by Contractor at no additional charge as part of City facilities Collection. 4.5.3 School Facilities Collection Contractor shall Collect and dispose of all Refuse, Recyclable and Green Waste material put in Containers for Collection at all public school facilities at no charge, including no charge for locking Bins, scout service, push-out service or other special services. Service levels and number of facilities serviced may increase during the Term of this Agreement without any additional compensation paid to the Contractor. Collections shall be scheduled at a time mutually agreed upon by Contractor and City. 4.5.4 Special Events Contractor shall provide litter/Recycling boxes and liners for Refuse and Recyclables Collection to City upon request at no additional charge for use at all City-sponsored and select other in-City events, including but not limited to:  New Year’s Eve (not event, to address increased pedestrian activity);  California Coastal Cleanup;  Sunset Concert Series;  Ark Walk;  St. Patrick’s Day Parade; and,  Surfer’s Walk of Fame. Recycling boxes should be easily distinguishable from Refuse boxes, and labeled to facilitate proper use by event participants. City crews may transport waste from these events and other in-City events to existing Bins and Roll-Off Boxes located at City yard or parks for servicing by Contractor under Section 4.5.1. If events are not listed in this section or otherwise sponsored by the City, Contractor may charge for litter boxes and liners in accordance with the approved rate schedule. Draft, March 13, 2012 -49- City of Hermosa Beach 4.5.5 Emergency Collection and Disposal Service Contractor will assist City at the City’s request with emergency Collection and Disposal service (in the event of major disaster, such as an earthquake, storm, riot or civil disturbance), or as otherwise determined necessary by the City, by providing Collection equipment and drivers normally assigned to City. Contractor may charge City for actual Disposal costs plus service rates per the approved rate schedule. 4.5.6 Abandoned Item Collection City crews will Collect items abandoned in the City and dispose of those items at City yard. Contractor will Collect such items from City yard and properly divert from landfilling or dispose of such items in accordance with Sections 4.1.16 and 4.1.17. 4.5.7 Large Venue Event Assistance, Event Recycling Contractor will assist planners of large venue events with reporting and planning needs as may be useful in meeting the requirements of AB 2176, and in lowering Disposal quantities generated at such events at no additional charge. Contractor shall take a proactive role in Solid Waste planning for large events. When informed by City as to an upcoming event, Contractor shall contact event planners to initiate Solid Waste Collection planning. Contractor shall provide Recycling services upon request to special event planners in accordance with Section 4.2.2. 4.5.8 Litter Boxes for Non-City-Sponsored Events Contractor must make cardboard litter boxes and liners available for purchase for all non-City-sponsored events in accordance with the approved rate schedule. 4.5.9 Code Enforcement Assistances City may request Contractor assistance with code enforcement, including reporting of container and enclosure issues and potential health and safety code violations. See Section 2.2 for code enforcement assistance regarding illegal hauling. 4.5.10 Capacity Guarantee [TO BE COMPLETED BASED UPON PROPOSAL] Draft, March 13, 2012 -50- City of Hermosa Beach 4.6 Operations 4.6.1 Schedules 4.6.1.1 Collection Days and Hours To preserve peace and quiet, Solid Waste shall only be Collected between 7:00 a.m. and 6:00 p.m. Residential collection is only permitted Monday through Friday; Commercial collection is permitted seven (7) days a week. Contractor may not make exceptions to these Collection days and times without advanced written approval from the City. If the regularly scheduled Collection day falls on New Year's Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving Day, or Christmas Day, Collection days for the remainder of that week shall all be postponed one Collection day, with the exception of service in the Downtown area. Contractor shall continue providing scheduled service in the Downtown area on holidays, and shall provide extra pickups as necessary, to prevent overflowing Containers on holiday weekends. See Section 4.1.13. 4.6.1.2 Review of Schedules and Routing Contractor shall review its operations plan outlining the Collection routes, intervals of Collection and Collection times for all materials Collected under this Agreement with City upon thirty (30) days written notice requesting said review. Contractor shall submit a copy of its Commercial and Residential Collection schedule and route map within seven (7) days if requested by City. If the plan is determined to be inadequate by City, Contractor shall revise it, incorporating any changes necessary to make it satisfactory to City within thirty (30) days. No change in schedules and routing shall be implemented for fifteen (15) days after Contractor receives approval from City and notifies Customers. No significant route changes may be made by Contractor without prior approval by City. 4.6.1.3 Missed Pickups If a missed pickup of Refuse, Recycling and/or Green Waste is reported to the Contractor by 3:00 p.m., the Contractor shall collect it on the same day. If a missed pickup is reported after 3:00 p.m., the Contractor shall make up the collection by noon of the next business day. Draft, March 13, 2012 -51- City of Hermosa Beach 4.6.2 Vehicles A. General. The Contractor shall provide Collection vehicles sufficient in number and capacity to efficiently perform the work required by this Agreement in strict accordance with its terms as described in this Agreement. Any additional vehicles/routes that may be required to meet the service standards during the term of this Agreement shall added at the Contractor's sole expense. The Contractor shall have available on Collection days sufficient back-up vehicles for each type of Collection vehicle used to respond to complaints and emergencies. B. Specifications. All route vehicles shall use compressed natural gas (“CNG”) or liquefied natural gas (“LNG”) within six months of the start of service under this Agreement. Contractor shall be in compliance with all rules and regulations currently in force or passed during the Agreement Term, including SCAQMD and the Air Resource Board’s regulations, in regards to all vehicles used in the City. No rate adjustments shall be made for such changes in law. All vehicles used by the Contractor in providing Solid Waste Collection services shall be registered with the California Department of Motor Vehicles. All such vehicles shall have watertight bodies designed to prevent leakage, spillage or overflow. Roll-off Box vehicles, Container delivery vehicles, scout vehicles, supervisor pickup trucks, and vehicles used for holiday tree Collection, special events and Bulky Item Collection are only required to use LNG or CNG fuel to the extent required by law, including SCAQMD and Air Resources Board regulations, with no rate adjustments granted for such changes in law. All route vehicles shall be no older than fifteen (15) years at any point during the Term of the Agreement. Contractor shall provide sufficient numbers of Collection vehicles no larger than ___________ to service narrow streets and alleys North of 27th Streets and other difficult areas where standard size Collection vehicles cannot easily and safely service Customers. [TO BE COMPLETED BASED ON PROPOSAL] C. Vehicle Identification. The Contractor's name, local telephone number, and a unique vehicle identification number designed by the Contractor for each vehicle shall be prominently displayed on all vehicles, in letters and numbers no less than three (3) inches high. The Contractor shall not place the City's name and/or any City logos on Draft, March 13, 2012 -52- City of Hermosa Beach the Contractor’s vehicles. Vehicles shall all be painted in a standard color scheme. City must approve truck labeling. D. Collection Vehicle Billboards. City reserves the right to request that Contractor install frames on its Collection vehicles for placement of City billboards. City would be responsible for the cost of developing the billboards and providing the billboards to Contractor for mounting. City has the exclusive right to promote City events and provide public information through the use of billboards on Collection vehicles. E. Cleaning and Maintenance 1) Contractor shall maintain all of its properties, vehicles, Facilities, and equipment used in providing service under this Agreement in a good, safe, neat, clean and operable condition at all times, and compliant with all federal, State and local laws. 2) Vehicles used in the Collection of Solid Waste shall be painted, thoroughly washed, and thoroughly steam-cleaned on a regular basis so as to present a clean appearance. The City may inspect vehicles at any commercially reasonable time to determine compliance with this Agreement. The Contractor shall also make vehicles available to the Los Angeles County Health Department for inspection, at any frequency it requests. The Contractor agrees to replace or repair to the City’s satisfaction, any vehicle that the City determines to be of unsightly appearance, leaking, or in unsatisfactory operating condition. 3) Contractor shall repaint all vehicles used in the Collection of Solid Waste within sixty (60) days' notice from the City, if the City determines that their appearance warrants painting. City shall not request that vehicles be painted more than once every three (3) years. 4) The Contractor shall inspect each vehicle daily to ensure that all equipment is operating properly. Vehicles that are not operating properly, or vehicles that are leaking or in such a condition as to be unsafe or excessively noisy, shall be removed from service until repaired and operating properly. The Contractor shall reasonably perform all scheduled maintenance functions in accordance with the manufacturer's specifications and schedule. The Contractor shall keep accurate records of all vehicle maintenance, recorded according to date and Draft, March 13, 2012 -53- City of Hermosa Beach mileage (or hours of operation) and shall make such records available to the City upon request. 5) Contactor 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. The Contractor shall maintain accurate records of repair, which shall include the date and mileage (or hours of operation), nature of repair and the verification by signature of a maintenance supervisor that the repair has been properly performed. 6) Upon request by the City, the Contractor shall furnish the City a written inventory of all equipment, including Collection vehicles, used in providing service, and shall update the inventory annually. The inventory shall list all equipment by manufacturer, ID number, date of acquisition, type, and capacity. F. Operation 1) Vehicles shall be operated in compliance with the California Vehicle Code, and all applicable safety and local ordinances. The Contractor shall not load vehicles in excess of the manufacturer's recommendations or limitations imposed by State or local weight restrictions on vehicles. 2) Equipment shall comply with US EPA noise emission regulations, currently codified at 40 CFR Part 205, and other applicable noise control regulations, and shall incorporate noise control features throughout the entire vehicle. In no event shall the noise level of equipment used for Collection exceed seventy-five (75) dB when measured at a distance of twenty-five (25) feet from the vehicle, five (5) feet from the ground. Contractor shall submit to the City, upon City’s request, a certificate of vehicle noise level testing of all vehicles by an independent testing entity. The Contractor shall store all equipment in safe and secure locations in accordance with the City's applicable zoning regulations. 3) Contractor shall be responsible for any damage resulting from or directly attributable to any of its operations, and which it causes to: the City's driving surfaces (excluding normal wear and tear), whether or not paved; associated curbs, gutters and traffic control devices; other public improvements; and private roads and alleys. Draft, March 13, 2012 -54- City of Hermosa Beach G. City Inspection Per Code. The City may cause any vehicle used in performance of this Agreement to be inspected and tested at any commercially reasonable time and in such manner as may be appropriate to determine that the vehicle is being maintained in compliance with the applicable provisions of the State Vehicle Code, including all Vehicle Code sections regarding smog equipment requirements. The City may direct the removal of any vehicle from service if that vehicle is found to be in nonconformance with applicable codes. No vehicle directed to be removed from service by the City shall be returned to service until it conforms with applicable codes, and its return to service has been approved by the City. H. Brake Inspections. The brake system of each vehicle used in performance of this Agreement shall be inspected and certified according to State law by the California Highway Patrol or by a brake inspection station licensed by the California Highway Patrol. Notice of certification shall be made available to the City within thirty (30) days of request. Failure to submit the required certification if requested shall be grounds for terminating this Agreement. I. Correction of Defects. Following any inspection, the City Manager shall have the right to cause the Contractor, at its sole cost and expense, to recondition or replace any vehicle or equipment found to be unsafe, unsanitary or unsightly. The City Manager’s determination may be appealed to the City Council, which decision shall be final. 4.6.3 Litter Abatement A. Minimization of Spills. Contractor shall use due care to prevent Solid Waste or fluids from leaking, being spilled and/or scattered during the Collection or transporta- tion process. If any Solid Waste or fluids leak or spill during Collection, Contractor shall promptly clean up all such materials. Each Collection vehicle shall carry a broom, shovel, absorbent, and containment materials at all times for this purpose. Contractor shall not transfer loads from one vehicle to another on any public street, unless it is necessary to do so because of mechanical failure, accidental damage to a vehicle, or a pre-approved method of Solid Waste transfer between vehicles, without prior written approval by City. Draft, March 13, 2012 -55- City of Hermosa Beach B. Clean Up. During the Collection or transportation process, Contractor shall clean up all litter spilled during Collection or otherwise caused by Contractor. Contractor shall leave a “red tag” notice for Customer if litter not caused by Contractor is found in Container enclosure or around Containers. For litter due to overflowing Bins, Contractor may address habitual offenders in accordance with Sections 4.1.3 and 4.1.7. In the event of a spill of materials (vehicle fluids, leachate, etc.), Contractor shall provide a cleanup of the spill to the satisfaction of City and other governing agencies. Cleanup methods may include pressure washing (Contractor must capture and reclaim water) or other similar clean-up methods. C. Covering of Loads. Contractor shall properly cover all open debris boxes during transport to the Disposal Site. 4.6.4 Personnel A. Qualified Drivers. Contractor shall furnish such qualified drivers, mechanical, supervisory, clerical, management and other personnel as may be necessary to provide the services required by this Agreement in a satisfactory, safe, economical and efficient manner. All drivers shall be trained and qualified in the operation of vehicles they operate and must possess a valid license, of the appropriate class, issued by the California Department of Motor Vehicles. B. Hazardous Waste Employee Training. Contractor shall establish and vigorously enforce an educational program which will train Contractor's employees in the identification of Hazardous Waste. Contractor's employees shall not knowingly place such Hazardous Waste in the Collection vehicles, nor knowingly dispose of such Hazardous Wastes at the processing Facility or Disposal Site. C. Customer Courtesy. Contractor shall train its employees in Customer courtesy, shall prohibit the use of loud or profane language, and shall instruct Collection crews to perform the work quietly. Contractor shall use its best efforts to assure that all employees present a neat appearance and conduct themselves in a courteous manner. If any employee is found to be discourteous or not to be performing services in the manner required by this Agreement, Contractor shall take all necessary corrective measures including, but not limited to, transfer, discipline or termination. If City has notified Contractor of a complaint related to discourteous or improper behavior, Draft, March 13, 2012 -56- City of Hermosa Beach Contractor will consider reassigning the employee to duties not entailing contact with the public while Contractor is pursuing its investigation and corrective action process. D. Compliance with Local Laws. Contractor and its employees shall comply with all local laws when conducting business in the City. No smoking is allowed within vehicles, and all smoking materials that are allowed shall be properly disposed of; no smoking materials or other trash shall be discarded in any location except approved trash or recycling containers. Employees and subcontractors shall comply with all other laws or regulations pertaining to franchisees or the public generally. E. Unauthorized Material Removal. Contractor shall dismiss or discipline employees who remove documents or any other material from Containers, other than specifically for the purposes of Disposal and Diversion as described in this Agreement. F. Training. Contractor shall provide suitable operations, health and safety training for all of its employees who use or operate equipment or who are otherwise directly involved in Collection or other related operations. G. Compliance with Immigration Laws. Contractor shall be knowledgeable of and comply with all local, state and federal laws which may apply to the performance of this Agreement. Contractor warrants and represents that all of its employees, including any and all prospective employees hired to perform services for the City under this Agreement and the employees of any subcontractor retained by the Contractor to perform a portion of the services under this Agreement, are and will be authorized to perform the services contemplated by this Agreement in full compliance with all applicable state and federal laws, rules and regulations. 4.6.5 Identification Required Contractor shall provide its employees, companies and subcontractors who may make personal contact with residents or businesses in City with identification. City may require Contractor to notify Customers yearly of the form of said identification. Contractor shall provide a list of current employees, companies, and subcontractors to City upon request. City reserves the right to perform a security and identification check through the City’s Police Department on the Contractor and all their present and future employees Draft, March 13, 2012 -57- City of Hermosa Beach employed by Contractor to work in the City, in accordance with accepted procedures established by City, or for probable cause. 4.6.6 Fees and Gratuities Contractor shall not, nor shall it permit any agent, employee, or subcontractors employed by it to request, solicit or demand, either directly or indirectly, any compensation or gratuity for services authorized to be performed under this Agreement except as described in this Agreement, in accordance with Exhibit 2 as updated and approved by City throughout the Term of the Agreement. 4.6.7 Non-Discrimination Contractor shall not discriminate in the provision of service or the employment of Persons engaged in performance of this Agreement on account of race, color, religion, sex, age, physical handicap or medical condition in violation of any applicable federal or Solid Waste law. 4.6.8 Routing and Coordination With Street Sweeping Services Contractor shall provide all routes and route schedules to the City and work with the City to resolve conflicts with street sweeping schedules. 4.6.9 Report of Accumulation of Solid Waste; Unauthorized Dumping Contractor shall direct its drivers to note (a) the addresses of any Premises at which they observe that Solid Waste is accumulating and is not being delivered for Collection; and (b) the address, or other location description, at which Solid Waste has been dumped in an apparently unauthorized manner. Contractor shall deliver the address or description to City within one (1) working day of such observation. 4.7 Transportation of Solid Waste Contractor shall transport all Solid Waste Collected to an approved Facility per Section 4.8 (e.g. Transfer Station, waste-to-energy Facility, Green Waste Processing Facility, MRF, Disposal Site). Draft, March 13, 2012 -58- City of Hermosa Beach Contractor shall maintain accurate records of the quantities of Solid Waste transported to all Facilities utilized and will cooperate with City in any audits or investigations of such quantities. Contractor shall cooperate with the operator of any Facility it uses with regard to operations therein, including, for example, complying with directions from the operator to unload Collection vehicles in designated areas, accommodating maintenance operations and construction of new facilities, cooperating with its Hazardous Waste exclusion program, and so forth. 4.8 Approved Facilities The Contractor shall dispose of Refuse Collected that is not required to be processed, or otherwise diverted, at the approved Disposal Site. Contractor must receive written advance approval from City to use each Transfer Station, Transformation Facility, processing Facility or other Facility used by Contractor in the fulfillment of this Agreement. Contractor is responsible for ensuring that each Facility it uses is properly permitted prior to requesting City approval to use such Facility. Unless and until the City instructs otherwise, the designated Disposal Site and other Facilities are: [TO BE COMPLETED BASED UPON PROPOSAL] 4.9 Status of Disposal Site Any Disposal Site utilized by Contractor shall be designed and constructed in accordance with 23 California Code of Regulations Section 2510 et seq. ("Subchapter 15"). Any such landfill has been issued all permits from federal, state, regional, county and City agencies necessary for it to operate as a Class III Sanitary Landfill and is in full regulatory compliance with all such permits. 4.10 Dedicated Routes Solid Waste Collected in the City may not be commingled in Collection vehicles with Solid Waste from other jurisdictions, unless the City approves in writing of the specific commingled routes and the tonnage allocation method to be used. Draft, March 13, 2012 -59- City of Hermosa Beach 4.11 Service Exceptions; Hazardous Waste Notifications A. Failure to Collect. When Solid Waste is not Collected from any Solid Waste service recipient, Contractor shall notify the service recipient in writing, at the time Collection is not made, through the use of a “red tag” or otherwise, of the reasons why the Collection was not made. B. Hazardous Waste Inspection and Reporting. Contractor reserves the right to inspect Solid Waste put out for Collection and to reject Solid Waste observed to be contaminated with Hazardous Waste, and the right not to Collect Hazardous Waste put out with Solid Waste. Contractor shall notify all agencies with jurisdiction, if appropriate, including the California Department of Toxic Substances Control and Local Emergency Response Providers and the National Response Center of reportable quantities of Hazardous Waste, found or observed in Solid Waste anywhere within City. In addition to other required notifications, if Contractor observes any substances which it or its employees reasonably believe or suspect to contain Hazardous Wastes unlawfully disposed of or released on any City property, including storm drains, streets or other public rights of way, Contractor will immediately notify City Manager. Contractor shall implement and maintain a training program that will assist its employees in identifying and properly disposing of any Hazardous Waste that may come into their possession. C. Hazardous Waste Diversion Records. Contractor shall maintain records showing the types and quantities, if any, of Hazardous Waste found in Solid Waste and which was inadvertently Collected from service recipients within City, but diverted from landfilling. Draft, March 13, 2012 -60- City of Hermosa Beach ARTICLE 5 OTHER SERVICES 5.1 Customer Service 5.1.1 Local Office Contractor shall maintain a local office within reasonable proximity to the City, staffed and open for Customers, at a minimum, from 8:00 a.m. to 5:00 p.m., Monday through Friday, excluding holidays. Contractor shall staff a toll-free telephone line to assist Customers from 7:00 a.m. to 6:00 p.m. Monday through Friday; a representative or an answering service shall be available from 8:00 a.m. to 5:00 p.m. on Saturday; a representative, an answering service or answering machine shall be available during all other hours. Calls received by answering service or machine shall be responded to on the next business day. Contractor shall provide City with a twenty-four (24) hour emergency number to a live person, not voice-mail. Contractor's telephone system shall be adequate to handle the volume of calls typically experienced on the busiest days and Customers must be reasonably able to reach Contractor by telephone during these hours. Contractor shall record Customer complaints regarding Customer service personnel in accordance with Section 5.1.2. Customer service representatives receiving multiple complaints are to be transferred from Customer service duties or, with City approval, disciplined and appropriately trained. 5.1.2 Complaint Documentation Service complaints received by City shall be directed to Contractor. Contractor shall keep daily logs of complaints forwarded to it for a minimum of three (3) years. 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 caller/complainant, 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. Log shall also include each instance that Solid Waste and/or Recyclables are Draft, March 13, 2012 -61- City of Hermosa Beach not Collected, the form of notification used to inform the participants of the reasons for non-Collection, and the end result or means of resolution of the incident. All written Customer complaints and inquiries shall be date-stamped when received. All complaints shall be initially responded to within one (1) business day of receipt, except missed pickups, which shall be addressed within the time frame described in 4.6.1.3. Contractor shall use best efforts to resolve complaints within two (2) business days. Contractor shall log action taken by Contractor to respond to and remedy the complaint. 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. 5.1.3 Resolution of Customer Complaints Disputes between Contractor and Customers regarding the services provided in accordance with this Agreement may be resolved by City Manager. City Manager’s decision shall be final and binding. Intervention by 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. 5.1.4 Service Liaison/Route Supervisor Contractor shall designate in writing a field supervisor as “Service Liaison” who shall be responsible for working with City and/or City's designated representative(s) to resolve Customer service related complaints. City shall have the right to approve the Contractor’s choice for a liaison. City shall be notified in advance of any change in Service Liaison. Service Liaison shall devote a minimum of ___% of his/her time to working with the City of Hermosa Beach. Draft, March 13, 2012 -62- City of Hermosa Beach 5.2 Education and Public Awareness 5.2.1 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. Accordingly, Contractor agrees to take direction from City 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. Contractor shall maintain its own program of providing information relevant to needs and methods to reduce, reuse and Recycle Solid Waste with its Bills. All public education materials shall be approved in advance by City and shall be printed in English and Spanish. 5.2.2 Implementation and On-going Education Requirements In order to promote public education, in addition to any other materials it develops, Contractor shall create the following public education materials and programs at Contractor expense, subject to City approval and input, which will be distributed as indicated below. All of these materials and programs shall be produced and/or available in English and Spanish languages, including pictures wherever applicable. All brochures, mailings, instructional “how-to” packets, and other educational materials are to be approved by City in advance of distribution. A public education plan shall be submitted to City for review within sixty (60) days of the execution of this Agreement. This plan shall address the items described in this section. • Initial Mailing – At least forty-five (45) days prior to the start of Collection service under this Agreement, Contractor will prepare and mail an initial mailing to all Customers explaining the transition from the existing Solid Waste Handling Service program to the new program as defined by this Agreement. The mailing will describe program changes, route changes if any, dates of program implementation, Recycling and Diversion programs available, and other pertinent information. • Instructional “How-to” Packets – An information packet shall be provided to each Customer at the start of service under this Agreement and to each new Customer throughout the Agreement term. This packet shall: describe available services, including available Recycling and Diversion programs and their benefits; provide Draft, March 13, 2012 -63- City of Hermosa Beach instructions for proper use of the Carts and Bins provided (such as how to place Carts or other permitted items for Collection, the types of materials to be placed in each Cart); detail holiday Collection schedules; and provide Billing and Customer service telephone numbers. This packet will contain updated information on how to use Containers, when, where and how to place Solid Waste for Collection, and who to contact with service or Billing questions, and for Bulky Item pickups. The packet should also clearly indicate what materials, such as syringes and other HHW, should not be disposed of in these Containers. This brochure shall include instructions on how Customers should dispose of HHW and Sharps, such as information on the HHW drop-off facilities, Sharps program, and other available programs. • Public Outreach Pieces – Not less than twice per year during each Rate Year at Contractor’s cost, Contractor shall prepare and distribute to each Customer, either by mailing or as otherwise dictated by City a public education piece to update Customers regarding program basics, program changes, holiday schedules and other service related information. Mailings may promote and explain: all Solid Waste programs offered by City and Contractor (such as Recycling, Green Waste, holiday tree, Bulky Item Collections, annual HHW round-up) described in detail; the environmental, regulatory, and other benefits of participating in Recycling and waste minimization and reuse in general; how to properly dispose of Household Hazardous Waste such as syringes, paint, etc.; Collection schedules, including holiday schedules; Customers service numbers; or other information requested by City. City shall determine the messages to be included in each piece and the format (brochure, door hanger, other), and shall have final approval over the pieces. • Article and Press Release Assistance – Contractor shall assist the City in preparing articles and press releases related to Solid Waste services and environmental issues upon City request. • Corrective Action “Red-Tag” Notice – Contractor shall develop a corrective action notification form, or “Red-Tag” notice, for use in instances where a Customer sets out inappropriate materials for Collection, that explains the appropriate manner for Disposal of such items. Draft, March 13, 2012 -64- City of Hermosa Beach • Website – Contractor shall develop and maintain a website to enable Customers to contact Contractor, and to display holiday schedules, Sharps program information, proper HHW disposal procedures, which materials are to be placed in Recycling Containers, and other useful information. 5.2.3 Contractor Representative Contractor shall retain on its staff an individual who shall, as part of his or her job function, routinely visit civic groups, school assemblies, homeowners’ associations, Multi-Family complexes and businesses, to promote and explain the Recycling programs Contractor offers, and participate in demonstrations and civic events. 5.2.4 Community Events At the direction of City, Contractor shall participate in and promote Recycling and other Diversion techniques at community events including Earth Day, and other local activities. Such participation would normally include providing, without cost, Collection and educational and publicity information promoting the goals of City's Integrated Solid Waste Management program and give-a-ways promoting waste reduction and reuse, such as reusable bags. 5.2.5 School Outreach At no additional cost, Contractor shall contact all K-12 public schools in the City of Hermosa Beach at least once per school year to offer to conduct assemblies, and to prepare and provide classroom materials (not curriculum), to educate students regarding Recycling and other Solid Waste-related topics. Materials provided shall be in sufficient quantities to service all classrooms and students for which materials are requested, and shall be subject to City approval. Contactor shall provide in-classroom and on-campus Recycling Containers at no cost to schools or City. 5.2.6 Business Outreach Contractor shall conduct a program to recognize businesses making positive environmental efforts and participating in Recycling programs. Awards will be presented annually at an annual event, Council meeting or award ceremony to be mutually agreed upon by City and Contactor, Contractor shall provide selected companies with an award to be mutually agreed upon by City and Contractor. Draft, March 13, 2012 -65- City of Hermosa Beach Company will provide business managers with promotional information, flyers and instructional posters made from recycled paper and labeled “Made from Recycled Paper” to implement a comprehensive waste reduction and recycling program, including information on what cannot be placed in the recycling container (i.e.: HHW).Contractor shall develop a comprehensive program to promote the following: • Reduce solid waste disposal and promote recycling; • Become energy and water efficient; • Purchase products that are less harmful to human health and the environment; • Minimize pollution contributions; • Help improve indoor air quality and reduce smog formation; and, • Educate businesses and their customers and employees about green business practices. Contractor shall provide initial and on-going consultation and support to businesses who request it to assist in the development and continuation of their business’ waste reduction and recycling programs. 5.2.7 Multi-Family Outreach Contractor will provide all property managers and Residents with Bin service with Recycling program guidelines, posters to be placed in laundry rooms, Refuse/Recyclable Container enclosures and other community areas at each building, and other outreach materials tailored to Multi-Family Bin Customer service. When contacting Multi-Family Customer building owner or property manager in accordance with Section 4.2.2, Contractor shall provide educational materials, and offer training to owner/manager in how to work with tenants to Recycle. Contractor shall provide each building owner and property manager with welcome packets for owner/manager to provide to each new resident upon move-in; packets will include information on what should be placed in the recyclables containers. Draft, March 13, 2012 -66- City of Hermosa Beach 5.2.8 Facility Tours Upon thirty (30) days’ notice, Contractor shall provide City Customers and organizations tours of its Recycling and other Solid Waste facilities at no cost to City, Customers or organizations. Such tours shall not unreasonably disrupt facility operation. City shall not be charged for labor, overhead, overtime, or any other costs associated with such tours. As part of such tours, Contractor shall distribute an educational brochure, printed on recycled paper, on conservation, Recycling, and general Solid Waste management programs. 5.3 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, by Customer type (Single Family, Multi-Family, Commercial), to satisfy the requirements of AB 939 and the City’s sustainability and environmental objectives. Contractor will at its sole expense conduct such a waste generation and characterization study upon request of City, but not more than once every two (2) years. Draft, March 13, 2012 -67- City of Hermosa Beach ARTICLE 6 CONTRACTOR COMPENSATION AND RATES 6.1 General The maximum rates set forth in Exhibit 2, and as more fully defined as Contractor Compensation in this Article, shall be the maximum amount that Contractor may charge Customers, as full, entire and complete compensation due pursuant to this Agreement for all labor, equipment, materials and supplies, City fees, taxes, insurance, bonds, letters of credit, overhead, Disposal, transfer, profit and all other things necessary to perform all the services required by this Agreement in the manner and at the times prescribed. Contractor shall impose no other charges for services provided to Customers unless approved by the City Manager. 6.2 Initial Rates The maximum rates that Contractor may charge Customers through December 31, 2013, shall not exceed the maximum rates set forth in Exhibit 2. 6.3 Schedule of Future Adjustments 6.3.1 Request Submittal Beginning with the Rate Year starting January 1, 2014 and ending on December 31, 2014, and for all subsequent Rate Years, Contractor may request an annual adjustment to the maximum rates shown in Exhibit 2. The Contractor shall submit its request in writing, to be received by City in person or via certified mail, by the preceding August 1, and shall be based on the method of adjustment described in Section 6.4. Failure to submit a written request by August 1 shall result in Contractor waiving the right to request such an increase for the subsequent Rate Year. Adjustment to the maximum rates is subject to the approval of the City Manager. 6.3.2 Approval Process Adjustment to the maximum rates is subject to the approval of the City Council. If a rate adjustment requested per this Section 6.3 is determined by the City to be accurately calculated in accordance with Agreement procedures, and would otherwise have been Draft, March 13, 2012 -68- City of Hermosa Beach approved by the City Council, but is prevented from implementation due to a protest under Proposition 218, then Contractor is permitted to terminate this Agreement upon 24-month written notice to City, but shall not be entitled to compensation from City or Customers for lost revenue due to the Proposition 218 protest. 6.4 Method of Adjustments 6.4.1 General Pursuant to Section 6.3, Contractor may request an adjustment to the maximum rates according to the method described below, subject to review and approval of City. All future adjustments approved under Sections 6.3 and 6.4 are to be effective January 1. 6.4.2 Cost Components for Rate Adjustment Indices The approved Company Compensation consists of the following cost component categories. Each cost component may be adjusted by the change in the corresponding index below. See Section 6.4.3 for detailed Company Compensation adjustment procedures. (1) If an index is discontinued, an alternative index must be approved by the City Manager. Bin/Cart/ Can/COD Roll-Off Box Pull Labor Employment Cost Index CIU20100005200000I, Total compensation, Private industry, Index number, Transportation and material moving Fuel Producer Price Index WPU 0531, Not seasonally adjusted, Fuels and related products and power, natural gas Equipment Producer Price Index, PCU336120336120, Heavy duty truck manufacturing Disposal Consumer Price Index for All Urban Consumers (CUUR0000SA0L1E), all items less food and energy index – U.S. city average [OR AS PROPOSED] All Other Consumer Price Index for All Urban Consumers (CUUR0000SA0L1E), all items less food and energy index – U.S. city average Total 100% 100% Rate Adjustment Factor (1)Cost Category Initial Weightings Draft, March 13, 2012 -69- City of Hermosa Beach 6.4.3 Rate Adjustment Steps Cart, Can, Bin and COD Roll-Off Box Rates Bin, Can, Cart and disposal-inclusive (COD) Roll-Off Box rates will be adjusted using the cost component weightings identified above for Bin, Can, Cart and COD Roll-Off Box rates as described below. See Exhibit 3A. Step One – Calculate the percentage increase or decrease in each index listed in Section 6.4.2. The increase or decrease in the transformation component is based on the transformation tipping fee at the transformation facility. The increase or decrease in the published indices for labor, fuel, equipment, disposal and all other (CPI) will be the change in the average annual published index between the 12-months ended the March prior to the Rate Year anniversary date and prior 12-month average (See Exhibit 3C). Step Two – The first rate adjustment cost components as a percentage of total costs are provided in Section 6.4.2 above, with subsequent components calculated in Step Four of the rate adjustment. For Step Two of each subsequent rate adjustment, use the cost components recalculated in Step Four during the previous rate adjustment. Multiply the percentage changes for each rate adjustment component by that component’s weighting and add these resulting percentages together to get the total weighted change to the rates. Step Three – Multiply the total weighted percent change from Step Two by the existing Customer rates to calculate the increase or decrease to the maximum rates. Add the rate increase or decrease to the existing rates to derive the newly adjusted rates. Step Four – Recalculate weightings for the following year based upon these changes. “Pull Plus Dump” Roll-Off Box Rates Roll-Off Box pull rates (excluding disposal-inclusive COD rates) will be adjusted using the same methodology above, with the weightings identified above for Roll-Off Pulls. The per ton Roll-Off Box Refuse Disposal rate shall adjust based upon the change in the disposal component of the rates (per the rate adjustment factor in Section 6.4.2). See Exhibit 3B. Draft, March 13, 2012 -70- City of Hermosa Beach 6.5 Extraordinary Adjustments Contractor may request an adjustment to maximum rates in the event of extraordinary changes in the cost of providing service under this Agreement. Extraordinary rate adjustments may be requested no more than once per year. Reasons for such extraordinary rate adjustment requests shall not include changes in Recyclable Material or Green Waste tipping fees or processing costs, changes in the market value of Recyclables from the values assumed in Contractor's Proposal, inaccurate estimates by the Contractor of its proposed cost of operations, unionization of Contractor’s work force, or change in wage rates or employee benefits. Contractor may request an extraordinary adjustment based upon changes in a direct per ton fee assessed at the Disposal Site by federal, state or local regulatory agencies after the Effective Date. Extraordinary rate adjustments shall only be effective after approval by City Council and may not be applied retroactively. For each request for an adjustment to the maximum rates that Contractor may charge Customers 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. Contractor shall also submit a schedule showing how its total costs and total revenues have changed over the past three (3) years for the services provided under this Agreement. City may request a copy of the Contractor’s annual financial statements in connection with the City’s review of Contractor’s rate adjustment request. City shall review the Contractor’s request and, in City’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. City may consider increases or decreases in the Contractor’s total revenues and total cost of services when reviewing an extraordinary rate adjustment request. 6.6 Redelivery/Return Trip Fee Contractor may charge a fee, per the approved rate schedule, in the event that Contractor arrives on time for a scheduled Collection of Bins or Roll-off Boxes, is impeded from Collection due to Container being blocked or otherwise unable to be Collected due to issues within the Customer’s control, and Contractor must return a Draft, March 13, 2012 -71- City of Hermosa Beach second time for Collection. Charge may be assessed for the trip, not per Bin or Roll-off Box, in the event of a Customer with multiple Bins or Roll-off Boxes. In event of dispute between Contractor and Customer over application of this fee, City Manager shall resolve the dispute. 6.7 Customer Billing and Contractor Compensation 6.7.1 Residential Customers Receiving Individual-Unit Service Contractor shall Bill individually-serviced Residential Customers quarterly, no sooner than the first day of the quarter for which services are being Billed. Contractor assumes the risk of non-payment. 6.7.2 Permanent Bin and Roll-Off Box Customers Contactor shall Bill permanent Bin and Roll-Off Box Customers monthly, no sooner than the first day of the month for which service is being Billed, with payment due no sooner than thirty (30) days after the invoice date. Contractor assumes the risk of non- payment by Bin Customers. 6.7.3 Temporary Services Billing Contractor shall Bill for temporary Roll-off Box and Bin services, and other special charges, as permitted in Exhibit 2. For established Commercial accounts, Contractor shall Bill monthly, no sooner than the first day of service, and require payment no sooner than thirty (30) days from the start of the service period Billed for. For Customers without an established, on-going service accounts, Contractor will accept major credit cards for payment. Such Customers who do not use credit cards may be required by the Contractor to post a security deposit or to pay on a “Cash on Delivery” (C.O.D.) basis. Any unused portion of a security deposit will be refunded to the Customer within five (5) business days of the termination of service. 6.7.4 Contractor’s Invoices All Bills must include service description, including Container size, frequency of service, any special services (such as scout or push-out service), and period billed for. City must approve Contractor Billings as to content and format of invoice. All Bills must carry a due date, not “due upon receipt.” Bills will not separately itemize City fees, Draft, March 13, 2012 -72- City of Hermosa Beach surcharges, disposal components or other breakdown of rates without advance written approval from City. Bills shall include Contractor’s telephone number for Billing and service inquiries. 6.7.5 Billing Disputes If any Customer disputes a Billing statement provided by Contractor, Contractor shall provide notice thereof to the City Manager, with a copy of the Billing invoice and the nature of the dispute (including copies of any correspondence from the Customer). Contractor shall use its best efforts to resolve such disputes within seven (7) days of receipt of notice from the Customer of such dispute. If such dispute cannot be mutually resolved by the Contractor and the Customer within such seven (7) day period, the dispute will be submitted to the City Manager for binding dispute resolution. Contractor acknowledges that the determination of the City Manager relating to such dispute shall be final and un-appealable. 6.7.6 Delinquent Accounts Contractor shall be responsible for collecting unpaid Customer Billings, subject to limitations under this section. City will assist the Contractor with collections by putting delinquencies on the County property tax roll after the delinquency notes have been delivered, but is not liable for any bad debt. Residential Cart/Can Service For late payments, Contractor shall follow procedures below: 1. The first delinquency notice may be sent with the subsequent quarterly Billing, with a copy sent to the City Manager. A 10% late payment fee may be added to the outstanding, late balance. 2. The second delinquency notice may be sent no sooner than thirty (30) days following the first notice, with a copy sent to the City Manager. A second 10% late payment fee may be added to the outstanding, late balance. Draft, March 13, 2012 -73- City of Hermosa Beach Bin, Commercial Cart/Can and Roll-Off Box Service 1. The first delinquency notice may be sent with the subsequent monthly Billing, with a copy to the City Manager. A 10% late payment fee may be added to the outstanding, late balance. 2. The second delinquency notice may be sent thirty (30) days after the first, warning that service may be suspended, with a copy to the City Manager. A second 10% late payment fee may be added to the outstanding, late balance. 3. Anytime following the second delinquency notice, Contractor shall send a notice warning that service will be suspended within seven (7) days, with copy to City Manager. Contractor may suspend service after seven (7) days with written City approval. City may prohibit suspension of service to Residential Cart/Can Customers, and may request that service be continued or resumed for delinquent Residential Bin Customers on a case-by-case basis due to code enforcement issues; in such cases, City shall not be liable to Contractor for service costs not recovered by Contractor. 6.7.7 Customer Billing Adjustments Should Contractor determine that Contractor has under-billed a Customer, or Customers, Contractor may back-Bill for no more than six (6) months. If it is determined by the City Manager that the under-billing was entirely due to an error or omission on the part of the impacted Customer, Contractor may request authority from the City Manager to back-bill longer than six months. Reimbursements to Customers for overbilling are not limited. If Contractor Bills Customers for any service charges not on the City-approved rate schedule, or not otherwise approved in writing by the City, such charges shall be refunded to Customers at City request. 6.7.8 Exemption from Service Residents may request a temporary exemption from service due to non-occupancy, construction, documentation of self-hauled Disposal, or other reasons. Contractor shall be responsible for administering exemption procedures. City may provide or revise Draft, March 13, 2012 -74- City of Hermosa Beach Contractor guidelines to exempt properties from receiving, and paying Contractor for, Solid Waste Collection service. Exempt properties may include vacant or unoccupied properties, or properties in which owners can document alternative means of self-haul Disposal. Draft, March 13, 2012 -75- City of Hermosa Beach ARTICLE 7 REVIEW OF SERVICES AND PERFORMANCE 7.1 Performance Review Meeting City may hold a meeting or a public hearing annually 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 Meeting”). The purpose of the Solid Waste Services and Performance Review Meeting 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 Meeting 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, regulatory constraints, results of route audits, and Contractor performance. City and Contractor may each select additional topics for discussion at any Solid Waste Services and Performance Review Meeting. City shall notify Contractor of its intent to hold a Solid Waste Services and Performance Review Meeting at least sixty (60) days in advance thereof. Thirty (30) days after receiving notice from City of a Solid Waste Services and Performance Review Meeting, Contractor shall submit a report to City which may contain such information as it wished to have considered, and shall contain the following: a) Current Diversion rates and a report on Contractor’s outreach activities for the past year. b) Recommended changes and/or new services to improve City's ability to meet waste diversion goals and to contain costs and minimize impacts on rates. A specific plan for compliance with State diversion goals shall be included. c) Any specific plans for provision of new or changed services by Contractor. Draft, March 13, 2012 -76- City of Hermosa Beach 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 Meeting. 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 Meeting, and any Customer may submit comments or complaints during or before the Meeting, either orally or in writing. Contractor shall be present at and participate in the Solid Waste Services and Performance Review Meeting. As a result of its findings following any Solid Waste Services and Performance Review Meeting, City may require Contractor to provide expanded or new services within a reasonable time and City may direct or take corrective actions for any performance inadequacies (although nothing contained in this provision should be construed as requiring City to hold a Solid Waste Services and Performance Review Meeting in order to enforce any rights or remedies it has pursuant to the terms hereof.) Should City require expanded or new services as a remedy for Contractor’s failure to perform its obligations hereunder, no additional compensation shall be due for such services. Otherwise, any new or expanded services required of Contractor shall be subject to the provisions of Section 2.10. 7.2 Performance Satisfaction Survey If requested by the City, Contractor will create and conduct a survey at Contractor’s expense in preparation for any Solid Waste Services and Performance Review Meeting held pursuant to Section 7.1. City shall notify Contractor of its desire for such a survey at least ninety (90) days in advance of the Solid Waste Services and Performance Review Meeting. The purpose of the survey is to determine Customer satisfaction with current Collection services and Customer service provided by Contractor. The Survey will be distributed to a minimum of five percent (5%) of the Residential Customers and ten percent (10%) of the Commercial Customers, selected at random. City may instruct Contractor to send out separate Single Family and Multi-Family/Commercial surveys. Contractor shall obtain City’s approval of each survey’s content, format, and mailing list prior to its distribution. City may require that Contractor have Customer responses to the survey returned directly to City. The survey results shall be made available to the City thirty (30) days prior to the Solid Waste Services and Performance Review Meeting. Draft, March 13, 2012 -77- City of Hermosa Beach 7.3 Route Audit Once during the first year, and thereafter at City request (but not more frequently than once per year), Contractor shall conduct an audit of its Residential and/or Commercial Collection routes in the City. City may use information from the audit to develop a request for proposals for a new service provider. City may instruct Contractor when to conduct the audit in order for the results to be available for use in preparation of a request for proposals or for other City uses. City may also instruct Contractor to conduct an audit at a time that would produce the most accurate Customer service information for a new service provider to use in establishing service with Customers. In setting these audit dates, City will establish due dates for Contractor providing routing and account information, and later, the report, to City. The route audit, at minimum, shall consist of an independent physical observation by person(s) other than the route driver of each Customer in City. This person(s) is to be approved in advance by City. The route audit information shall include, as a minimum, the following information for each account: For Residential Cart Customers (Residential Route Audit):  Route number;  Truck number;  Number and size of Carts by waste stream (Refuse, Recycling, Green Waste);  Service address; and,  Cart condition. For Residential Bin, Commercial Bin and Cart, and permanent Roll-off Customers (Commercial Route Audit):  Route number;  Truck number;  Account name;  Account number;  Account service address;  Account type (Residential, Commercial, Roll-off); Draft, March 13, 2012 -78- City of Hermosa Beach  Service level per Contractor Billing system (quantity, size, frequency);  Observed Containers (quantity and size).  Container 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 of the audit. This summary shall include:  Identification of the routes;  Route map;  Truck numbers;  Number of accounts, by route and in total (Residential, Commercial and Roll-off Box);  Confirmation that all routes are dedicated exclusively to City Customers, or that the tonnage allocation methodology has been approved by the City;  Number and type of exceptions observed;  Total monthly service charge (Residential, Commercial and Roll-off Box), pre-audit; and,  Total monthly service charge (Residential, Commercial and Roll-off Box), post-audit (subsequent to corrections of identified exceptions). The report shall include a description of the procedures followed to complete the route audit. This description shall include the names and titles of those supervising the route audits and the names and titles of those performing the observations. The report shall also include a description of the changes and Contractor’s plans to resolve the exceptions. The results of the audit, and supporting back-up data, shall be available for review by City or its representative and shall be made available in an electronic or printed format. Draft, March 13, 2012 -79- City of Hermosa Beach ARTICLE 8 RECORDS, REPORTS AND INFORMATION REQUIREMENTS 8.1 General Contractor shall maintain such accounting, statistical and other records related to its performance under this Agreement as shall be necessary to develop the financial statements and other reports required by this Agreement. Also, Contractor agrees to conduct data collection, information and record keeping, and reporting activities needed to comply with applicable laws and regulations, to meet the reporting and Solid Waste program management needs of City, and to evaluate progress on meeting the City’s sustainability and environmental objectives. To this extent, such requirements set out in this and other articles of this Agreement shall not be considered limiting or necessarily complete. In particular, this article is intended to only highlight the general nature of records and reports and is not meant to define exactly what the records and reports are to be and their content. Further, with the written direction or approval of City, the records and reports to be maintained and provided by Contractor in accordance with this and other Articles of the Agreement shall be adjusted in number, format, or frequency. 8.2 Records 8.2.1 General Contractor shall maintain records required to conduct its operations, to support requests it may make to City, and to respond to requests from City in the conduct of City business. Adequate record security shall be maintained to preserve records from events that can be reasonably anticipated such as a fire, theft and earthquake. Electronically maintained data/records shall be protected and backed up to the satisfaction of the City. All records shall be maintained for five (5) years, and shall continue to be available for five (5) years after the expiration of this Agreement, except as otherwise provided in this Agreement. After minimum holding periods are met, Contractor will notify City ninety (90) days before destroying records. Contractor agrees that the records of any and all companies conducting operations addressed in the Agreement shall be provided or made available to City and its official Draft, March 13, 2012 -80- City of Hermosa Beach representatives during normal business hours. Account histories shall be accessible to the City by computer for a minimum of five (5) years. City may review or utilize any of the records described in this section. Such records include, but are not limited to, financial, Solid Waste, CERCLA and Disposal records. 8.2.2 Financial Records Contractor shall maintain financial records relating to its operations pursuant to this Agreement separate and segregated from such records relating to its other operations. Contractor shall maintain at least the following records: • Audited financial statements for Contractor or, if a guarantee was provided, for the parent company guarantor as a whole; • Financial statements (compiled, reviewed or audited) of revenue and expense for this Agreement segregated from the other operations of Contractor (including without limitation those operations of Contractor in City and surrounding jurisdictions which are not covered by this Agreement), including a description of segregation methodology; and, • Complete descriptions of related party transactions (corporate and/or regional management fees, intercompany profits from transfer, processing or Disposal operations). 8.2.3 Solid Waste Records Contractor shall maintain and make available to the City upon request the following records relating to its operations pursuant to this Agreement: a) Customer services and Billing/City payment records; b) Records of tons Collected, processed, diverted and Disposed by waste stream (Refuse, Recycling and Green Waste), by Customer type (Cart/Can, Residential Bin, Commercial and Roll-off Box), and the Facilities (Transfer Station, MRF, or landfill) where such material was taken (Residential Bin versus Commercial Bin tonnage may be estimated based upon Container distribution or other method approved by City); Draft, March 13, 2012 -81- City of Hermosa Beach c) Quantity of Recyclable Materials recovered by material type, as well as quantity of material diverted from landfills in compliance with AB 939; d) Bulky Item and special event tonnages, including tons disposed and diverted; e) Routes; f) Facilities, equipment and personnel used; g) Facilities and equipment operations, maintenance and repair; h) Number and type of Refuse, Recycling and Green Waste Containers in service by container type (Cart, Can, Bin, Roll-Off Box) and size; i) Complaints; and, j) Missed pickups. 8.2.4 CERCLA Defense and Disposal Records The City views the ability to defend against CERCLA, State Hazardous Substance Law, 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. The Contractor shall maintain data retention and preservation systems that can establish where Solid Waste Collected in the City was landfilled (and therefore establish where it was not landfilled) and provide a copy of disposal reports for twenty-five (25) years and the other reports required in Section 8.2.3 for five (5) years after the term during which Collection services are to be provided pursuant to this Agreement, or to provide copies of such records to the City. Contractor shall continue to retain records in accordance with Section 8.2.3 for five (5) years, and disposal records for twenty-five (25) years, after the term during which Collection services are to be provided pursuant to this Agreement. Contractor agrees to notify the City’s Risk Manager and the City Attorney at least ninety (90) days before destroying such records. This provision shall survive the expiration of the period during which Collection services are to be provided under this Agreement. Draft, March 13, 2012 -82- City of Hermosa Beach 8.2.5 Other Programs' Records Records for other programs shall be tailored to specific needs. In general, they shall include: a) Plans, tasks, and milestones; and, b) Accomplishments in terms such as dates, activities conducted and numbers of participants and responses; and, c) Records relating to programs or other activities undertaken by Contractor pursuant to the Agreement that may help City to complete reporting related to the City’s sustainability and environmental objectives. 8.2.6 Audit City may conduct an audit of Contractor at any time. The scope of the audit and auditing party 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 rate. Contractor will fund biennial audits. The first hauler-funded audit, to be performed during 2014, will be based on the Contractor’s reports and records for calendar year 2013. Contractor-funded audits will be performed every other year thereafter. Contractor will reimburse to the City the cost of such audits up to $80,000 for the first audit, and $50,000 for each subsequent biennial audit in 2014 dollars. The $50,000 amount in subsequent years shall be increased annually by the change in CPI identified in Section 6.4 as the change to the “all other” component. Should an audit conducted or authorized by the City disclose that fees payable by Contractor were underpaid by three percent (3%) or more, that tonnage was misreported by three percent (3%) or more, or that more than three percent (3%) of the Customers were inaccurately Billed based on the auditor’s sampling for the period under review, City may expand the scope of the audit and recover additional audit costs from the Contractor. Draft, March 13, 2012 -83- City of Hermosa Beach 8.2.7 Payments and Refunds Should an audit disclose that fees payable by the Contractor were underpaid or that Customers were overcharged for the period under review, Contractor shall pay to City any underpayment of fees and/or refund to Contractor's Customers or to City, as directed by City, any overcharges within thirty (30) days following the date of the audit; reimbursement to City or Customers for underpayments and overcharges may be limited to three (3) years. Contractor credit for overpayment of City fees shall be limited to three (3) years. Contractor shall pay interest to the City for any underpayment or overcharges at an annual rate of twelve percent (12%). Undercharges shall not be billed in arrears for more than ninety (90) days of service, with any remaining undercharges absorbed by Contractor. Should an audit disclose that fees were overpaid, City may credit such amounts against future fees payable by Contractor or may select another method of reimbursement. 8.3 Reports 8.3.1 Report Formats and Schedule Records shall be maintained in forms and by methods that facilitate flexible use of data contained in them to structure reports, as needed. Contractor may propose report formats that are responsive to the objectives and audiences for each report. The format of each report shall be approved by City. In addition to submitting all reports on paper, Contractor agrees to submit all reports in an electronic format approved by City, compatible with City’s software/computers at no additional charge. Reports shall be submitted within thirty (30) calendar days after the end of the reporting period. Annual reports for which a date is not otherwise specified in this Agreement shall be submitted within thirty (30) calendar days after the end of the calendar year. If requested, Contractor’s complaint summary, described in Section 5.1.2, shall be sent to the City Manager within five (5) business days of request. All reports shall be submitted to: City Manager City of Hermosa Beach 1315 Valley Drive Hermosa Beach, California 90254 Draft, March 13, 2012 -84- City of Hermosa Beach 8.3.2 Monthly Reports The information listed below shall be the minimum reported: a) Solid Waste Collected by Contractor, sorted by type of Solid Waste Collected and diverted (Refuse, Recycling and Green Waste) in tons (including contamination and Diversion rates for each waste stream and Customer type), Customer type (Cart/Can, Bin and Roll-off Box) and the Facilities where the tons were processed or Disposed. b) Warning notices issued for contaminated Refuse, Recyclable Materials and Green Waste Containers. c) Narrative summary of problems encountered and actions taken with recommendations for City, as appropriate. d) Description of Contractor outreach activities and copies of promotional and public education materials sent during the month. e) Other information or reports that City may reasonably request or require. Note: Monthly fee payment statement supporting calculation of monthly fees due per Article 3 shall be submitted separately, accompanying the fee payment. 8.3.3 Annual Report The annual report shall include: a) A summary of the number of Containers in service as of December 31 by size (number of gallons, number of yards), sector (Residential Cart, Residential Can, Commercial Cart, Commercial Can, Residential Bin, Commercial Bin and Roll-off Box), service frequency, and type of service (Refuse, Recycling and Green Waste). Identify which Containers represent free City services. b) Records of tons Collected, processed, diverted and disposed by waste stream (Refuse, Recycling and Green Waste), by Customer type (Cart/Can, Bin and Roll- off Box). c) Number of routes and route hours per day by type of service as of December 31. d) General information about the Contractor and its most recent annual report. e) Other information or reports that County may reasonably request or require. Draft, March 13, 2012 -85- City of Hermosa Beach f) Gross annual Billings by service sector (Cart/Can, Bin and Roll-off Box). 8.3.4 Financial Report The City may, at City’s option, request and be provided with Contractor's financial reports/statements for the most recently completed fiscal year in connection with any audit, extraordinary rate adjustment request, or verification of other information required under this Agreement. The financial statements and footnotes shall be prepared in accordance with Generally Accepted Accounting Principles (“GAAP”) and audited, in accordance with Generally Accepted Auditing Standards (“GAAS”), by a certified public accountant (“CPA”) licensed (in good standing) to practice public accounting in the State of California as determined by the State of California Department of Consumer Affairs Board of Accountancy. The cost of preparation of the financial statements and audit shall be borne by Contractor as a direct cost of service. In addition to the above audited financial statements, Contractor shall provide to City the supplemental schedule of results of operations in the City on a compiled basis. The supplemental schedule will show Contractor’s specific revenues and expenses in connection with the operations provided for in this Agreement, separated from operations in other geographical areas. The supplemental schedule need not be audited; however, the total results of Contractor’s operations per the supplemental schedule must agree to the audited financial statements. 8.4 Reporting Adverse Information Contractor shall provide City two (2) copies (one to the City Manager, one to the City Attorney) of all reports, pleadings, applications, notifications, notices of violation, communications or other material relating in any way to Contractor’s performance of services pursuant to this Agreement, submitted by Contractor to, or received by Contractor from, the United States or California Environmental Protection Agency, CalRecycle, the Securities and Exchange Commission or any other federal, state or local agency, including any federal or state court. Copies shall be submitted to City within thirty (30) days of receipt by Contractor, or sooner if reasonably apparent that to do so is materially relevant; any responses by Contractor shall be submitted to City simultaneously with Contractor’s filing or submission of such matters with said agencies. Contractor’s routine correspondence to said agencies need not be routinely Draft, March 13, 2012 -86- City of Hermosa Beach submitted to City, but shall be made available to City promptly upon City’s written request. 8.5 Right to Inspect Records City shall have the right to inspect or review the specific documents or records required expressly or by inference pursuant to this Agreement, or any other similar records or reports of Contractor or its Affiliates that City shall deem, in its sole discretion, necessary to evaluate annual reports, and Contractor's performance provided for in this Agreement. Contractor shall make all records and documents to be reviewed and inspected by City as a part of any audit or other record review conducted by City, available for City’s review, inspection and copying within five (5) days of receiving written notice from City requesting the same. 8.6 Failure to Report The refusal or failure of Contractor to file any required reports, or to provide required information to City, or the inclusion of any materially false or misleading statement or representation by Contractor in such report shall be deemed a material breach of the Agreement as described in Section 11.1 and shall subject Contractor to all remedies which are available to the City under Agreement or otherwise. Draft, March 13, 2012 -87- City of Hermosa Beach ARTICLE 9 INDEMNIFICATION, INSURANCE, BOND AND LETTER OF CREDIT 9.1 Defense of Agreement Contractor agrees to, and shall timely, take all actions that are reasonably necessary to defend the validity and enforceability of this Agreement and shall pay all costs related to such defense. Contractor shall defend, indemnify, protect and hold harmless, the City, its officers, agents and employees from any and all claims, actions or proceedings to attack, set aside, void, annul or seek monetary damages resulting from an approval by the City of this Agreement. The City shall promptly notify Contractor of any such claim, action, or proceeding. The City and Contractor shall meet in good faith in an effort to come to a mutual agreement for a joint defense; provided that the City shall be entitled to select legal counsel of its choice to conduct the defense if an agreement cannot be reached. Contractor’s obligations to pay all costs, defend, indemnify, protect and hold harmless under this section shall not be altered in the event City retains separate counsel and shall also include reimbursement to City for time spent by its in- house City attorneys responding to the litigation. 9.2 Indemnification Contractor hereby agrees to and shall indemnify and hold harmless City, its elected and appointed boards, commissions, officers, employees, consultants and agents (collectively, “Indemnitees”) 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 or resulting from and in any way connected with (1) the negligence or willful misconduct of Contractor, its officers, employees, agents, contractors and/or subcontractors in performing services under this Agreement; (2) the failure of Contractor, its officers, employees, agents, contractors and/or subcontractors to comply in all respects with the provisions of this Agreement, 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, contractors and/or subcontractors in performing services under this Agreement Draft, March 13, 2012 -88- City of Hermosa Beach for which strict liability is imposed by law (including, without limitation, the Environmental Laws). The foregoing indemnity 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 the Indemnitees’ negligence, but shall not extend to matters resulting from the Indemnitees’ 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) the Indemnitees 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. Contractor, upon demand of City, made by and through the City Attorney, shall protect City and appear in and defend the Indemnitees 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, or asserting rights under the United States or California Constitutions or any federal or state law to provide Solid Waste Handling Services in the City. 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. 9.3 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 harmless Indemnitees 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 Draft, March 13, 2012 -89- City of Hermosa Beach 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 Indemnitee is liable, responsible or in any way obligated to investigate, assess, monitor, study, test, treat, remove, remediate, or otherwise clean up, 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 any Environmental Law; 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 of 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; 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 section, the term "Hazardous Contaminant" shall mean any Hazardous Substance, any Hazardous Waste, 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 Draft, March 13, 2012 -90- City of Hermosa Beach amendments to any referenced statutory or 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. 9.4 AB 939 Indemnification and Guarantee A. Contractor agrees to indemnify and hold harmless City from and against all fines and/or penalties imposed by CalRecycle in the event the source reduction and Recycling goals or any other requirement of AB 939 are not met by City with respect to the waste stream Collected under this Agreement. B. Contractor warrants and represents that it is familiar with City's waste characterization study as set forth in City's Source Recovery and Recycling Element (“SRRE”), and that it has the ability to and will provide sufficient programs and services to ensure 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, with respect to that portion of the Solid Waste generated in City that is the subject of this Agreement. 9.5 Insurance 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, 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. A. 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). Draft, March 13, 2012 -91- City of Hermosa Beach 2. The most recent editions of Insurance Services Office form number CA 00 01 covering Automobile Liability, code 1 "any auto" and endorsement CA 00 25. 3. Workers' Compensation insurance as required by the Labor Code of the State of California and Employers Liability insurance. B. Minimum Limits of Insurance. Contractor shall maintain in force for the term of this Agreement limits no less than: 1. Comprehensive General Liability: Five Million Dollars ($5,000,000) limit aggregate and Five Million Dollars ($5,000,000) limit per occurrence for bodily injury, Personal injury and property damage. 2. Automobile Liability: Five Million Dollars ($5,000,000) limit aggregate and Five Million Dollars ($5,000,000) single limit per accident for bodily injury and property damage. 3. Workers' Compensation and Employers Liability: Workers' compensation limits as required by the Labor Code of the State of California and Employers Liability limits of One Million Dollars ($1,000,000) per accident, One Million Dollars ($1,000,000) policy limit for bodily injury or disease; One Million Dollars ($1,000,000) per each employee bodily injury or disease. 4. Pollution and/or Environmental Liability: [TO BE DETERMINED]. C. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by City. At the option of City, either: the insurer shall reduce or eliminate such deductibles or self-insured retention’s as respects City, its officials, employees and agents; or Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. D. Other Insurance Provisions. The policies are to contain, or be endorsed to contain, the following provisions: 1. General Liability and Automobile Liability Coverages Draft, March 13, 2012 -92- City of Hermosa Beach a) City, its elective and appointive boards, commissions, officials, employees, agents and volunteers are to be named as additional insureds as respects: liability arising out of activities performed by or on behalf of Contractor; products and completed operations of Contractor; Premises owned, leased or used by Contractor; or vehicles owned, leased, hired or borrowed by Contractor. The coverage shall contain no special limitations on the scope of protection afforded to City, its elective and appointive boards, commissions, officials, employees, agents or volunteers. b) Contractor's insurance coverage shall be primary insurance as respects City, its elective and appointive boards, commissions, officials, employees, agents and volunteers. Any insurance or self- insurance maintained by City, its officials, elective and appointive boards, commissions, employees, agents or volunteers shall be excess of Contractor's insurance and shall not contribute with it. c) Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its officials, elective and appointive boards, commissions, employees, agents or volunteers. d) Coverage shall state that Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. e) The commercial general and automobile liability policies required by this Agreement shall allow City, as additional insured, to satisfy the self-insured retention (“SIR”) and/or deductible of the policy in lieu of the Contractor (as the named insured) should Contractor fail to pay the SIR or deductible requirements. The amount of the SIR or deductible shall be subject to the approval of the City Attorney and the Finance Director. Contractor understands and agrees that satisfaction of this requirement is an express condition precedent to the effectiveness of this Agreement. Failure by Contractor as primary insured to pay its SIR or deductible constitutes a material breach of this Agreement. Should City pay the SIR or deductible on Contractor’s behalf upon the Contractor’s failure or refusal to do Draft, March 13, 2012 -93- City of Hermosa Beach so in order to secure defense and indemnification as an additional insured under the policy, City may include such amounts as damages in any action against Contractor for breach of this Agreement in addition to any other damages incurred by City due to the breach. 2. Workers' Compensation and Employers Liability Coverage - The insurer shall agree to waive all rights of subrogation against City, its officials, elective and appointive boards, commissions, employees, agents and volunteers for losses arising from work performed by Contractor for City. 3. All Coverages - Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to City. E. 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 edition of Best's Insurance Reports of size category VII or larger and a rating classification of A or better. F. Verification of Coverage. Contractor shall furnish City with certificates of insurance and with original endorsements affecting coverage required by this clause. Such certificates shall show the type and amount of coverage, effective dates and dates of expiration of policies, and shall have all required endorsements. 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. Renewal certificates will be furnished periodically to City to demonstrate maintenance of the required coverage throughout the Term. G. Companies and Subcontractors. Contractor shall include all companies and subcontractors as insureds under its policies or shall furnish separate certificates and Draft, March 13, 2012 -94- City of Hermosa Beach endorsements for each contractor and subcontractor. All coverages for companies and subcontractors shall be subject to all of the requirements stated herein. H. Required Endorsements 1. The Workers' Compensation policy shall contain an endorsement in substantially the following form: "Thirty (30) days (or ten (10) days in the event of cancellation for non- payment) prior written notice by certified mail, return receipt requested, shall be given to City in the event of cancellation, reduction in coverage, or non-renewal of this policy. Such notice shall be sent to: City Manager City of Hermosa Beach 1315 Valley Drive Hermosa Beach, California 90254 2. The Public Liability policy shall contain endorsements in substantially the following form: a) "Thirty (30) days (or ten (10) days in the event of cancellation for non-payment) prior written notice shall be given to City in the event of cancellation, reduction in coverage, or non-renewal of this policy. Such notice shall be sent to: City Manager City of Hermosa Beach 1315 Valley Drive Hermosa Beach, California 90254 b) "Contractor agrees to endorse the third party general liability coverage required herein to include as additional insureds City of Hermosa Beach, its officials, employees and agents, using standard ISO endorsement No. CB 2010 with an edition date of 1985, or equivalent provisions as determined acceptable by the Office of the City Attorney for the City of Hermosa Beach in its sole discretion. Contractor also agrees to require all contractors, subcontractors and Draft, March 13, 2012 -95- City of Hermosa Beach anyone else involved in any way with the project contemplated by this agreement, to do likewise." c) "This policy shall be considered primary insurance as respects any other valid and collectible insurance maintained by City, including any self-insured retention or program of self-insurance, and any other such insurance shall be considered excess insurance only." d) "Inclusion of City as an insured shall not affect City's rights as respects any claim, demand, suit or judgment brought or recovered against Contractor. This policy shall protect Contractor and City in the same manner as though a separate policy had been issued to each, but this shall not operate to increase Contractor's liability as set forth in the policy beyond the amount shown or to which Contractor would have been liable if only one party had been named as an insured." e) “The City, as additional insured, shall be permitted to satisfy the self-insured retention (“SIR”) and/or deductible of the policy in lieu of the Contractor (as the named insured) should Contractor fail to pay the SIR or deductible requirements. “ I. Other Insurance Requirements 1. In the event any services are delegated to another company or subcontractor, Contractor shall require such company or subcontractor to provide statutory workers' compensation insurance and employer's liability insurance for all of the company’s or subcontractor's employees engaged in the work in accordance with this Section 9.5. The liability insurance required by this Section 9.4 shall cover all companies or subcontractors or the companies or subcontractors must furnish evidence of insurance provided by it meeting all of the requirements of this Section 9.5. 2. Contractor shall comply with all requirements of the insurers issuing policies. The carrying of insurance shall not relieve Contractor of any obligation under this Agreement. If any claim exceeding the amount of any deductibles or self-insured reserves is made by any third Person Draft, March 13, 2012 -96- City of Hermosa Beach against Contractor or any company or subcontractor on account of any occurrence related to this Agreement, Contractor shall promptly report the facts in writing to the insurance carrier and to City. If Contractor fails to procure and maintain any insurance required by this Agreement, City may take out and maintain, at Contractor's expense, such insurance as it may deem proper and deduct the cost thereof from any moneys due Contractor. 9.6 Faithful Performance Bond Concurrently with execution of this Agreement, Contractor shall deliver to City a performance bond in the sum of the amount of Two Hundred Fifty Thousand Dollars ($__________), similar to the form provided in Exhibit 6, which secures the faithful performance of this Agreement, including, without limitation, payment of any penalty and the funding of any work to cure a breach of this Agreement. The bond shall contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his or her power of attorney. 9.7 Faithful Performance Letter of Credit In addition to a corporate surety bond as noted in Section 9.6 above, Contractor shall furnish an irrevocable letter of credit in the amount of Two Hundred Fifty Thousand Dollars ($__________), from a financial institution acceptable to the City and in a form acceptable to the City Attorney as security for the performance of this Agreement (the “LOC”). The LOC shall be the sole responsibility of Contractor, and shall be released within thirty (30) days after both (i) the expiration of the term of this Agreement, or upon the earlier termination hereof; and (ii) Contractor’s satisfactory performance of all obligations hereunder. 9.8 Forfeiture of Performance 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 performance bond which is necessary to recompense and make whole the City forfeited to the City. Upon partial or full forfeiture of the performance bond, Contractor shall restore the performance bond to its face amount within thirty (30) days of the City’s Draft, March 13, 2012 -97- City of Hermosa Beach declaration. Failure to restore the performance bond to its full amount within thirty (30) days shall be a material breach of the Agreement. 9.9 Forfeiture of Letter Of Credit Thirty (30) days following City providing Contractor with written notice of its failure to pay City any amount owing under this Agreement, the LOC may be drawn upon by City for purposes including, but not limited to: a. Payment of sums due under the terms of this Agreement which Contractor has failed to timely pay to City; and/or, b. Reimbursement of costs borne by City to correct violations of this Agreement not corrected by Contractor, including but not limited to the liquidated damages described in Section 11.3. City may draw upon the entire LOC and convert it to a cash deposit if Contractor fails to cause the LOC to be extended or replaced with another satisfactory letter of credit no later than sixty (60) days prior to its expiration during the term hereof. 9.10 Performance Security Beyond Service Term Some Agreement requirements extend beyond the Term and other requirements, such as minimum Diversion rates per Section 4.2.5, will not be substantiated until after the final service date. Therefore, Contractor shall not terminate the Performance Bond or LOC, and will renew them to ensure continuous availability to the City, until receiving a written release from the City. The Performance Bond and LOC will automatically expire at the end of twenty-four (24) months after the end of the Term, unless City has notified Contractor in writing as to a specific contractual area of concern yet to be resolved, instructing Contractor to retain all or a portion of the Performance Bond and/or LOC. Neither permission from the City to discontinue holding the Performance Bond and/or LOC, nor permitted expiration after twenty-four (24) months, shall relieve Contractor of payments to the City that may be due, or may become due. Draft, March 13, 2012 -98- City of Hermosa Beach ARTICLE 10 CITY'S RIGHT TO PERFORM SERVICE 10.1 General In the event that Contractor, for any reason whatsoever, fails, refuses or is unable to Collect, Recycle, process, transport or Dispose of any or all Solid Waste as required by this Agreement, at the time and in the manner provided in this Agreement, 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, in such a manner, or for such a time that such accumulation endangers or menaces the public health, safety or welfare, then City shall have the right, but not the obligation, (1) to perform, or cause to be performed by a third party, such services itself with its own or other personnel without liability to Contractor; and/or (2) to take possession of any or all of Contractor's land, equipment and other property used or useful in the Collection and transportation of Solid Waste, and to use such property, directly or through contracting with a third party, to Collect and transport any Solid Waste generated within City which Contractor would otherwise be obligated to Collect, transport and properly Dispose of or process pursuant to this Agreement. Notice of City’s determination to effect its rights under this Section may be given orally by telephone to Contractor at its principal office and shall be effective immediately. Written confirmation of such oral notification shall be sent to Contractor within twenty- four (24) hours of the oral notification. All actions that may be taken by City under this Article 10 may be taken directly, or through City contracting with a third-party. Contractor further agrees that in such event: A. It will take direction from City to effect the transfer of possession of equipment and property to City for City's use, or for use by any Person or entity designated by the City. B. It will, if City so requests, keep in good repair and condition all of such equipment and property, provide all motor vehicles with fuel, oil and other service, and provide such other service as may be necessary to maintain said property in operational condition. Draft, March 13, 2012 -99- City of Hermosa Beach C. City may immediately engage all or any personnel necessary or useful for the Collection and transportation of Solid Waste, including, if City so desires, employees previously or then employed by Contractor. Contractor further agrees, if City so requests, to furnish City the services of any or all management or office personnel employed by Contractor whose services are necessary or useful for Solid Waste Collection, transportation, processing and Disposal operations and for the Billing and Collection of fees for these services. City agrees that it assumes complete responsibility for the proper and normal use of such equipment and facilities while in its possession. If the interruption or discontinuance in service is caused by any of the reasons listed in Section 11.4, City shall pay to Contractor the reasonable rental value of the equipment and facilities, possession of which is taken by City, for the period of City's possession, if any, which extends beyond the period of time for which Contractor has rendered Bills in advance of service, for the class of service involved. If the interruption or discontinuance in service is caused by any other reason, regardless of City’s implementation of options under this agreement, City may consider this a default. 10.2 Billing and Compensation to City During City's Possession Contractor agrees that it shall reimburse City for any and all costs and expenses incurred by City beyond revenue Billed and received by City in taking over possession of the above-mentioned equipment and property for Solid Waste service in such manner and to an extent as would otherwise be required of Contractor under the terms of this Agreement. Such reimbursement shall be made from time to time after submission by City to Contractor of each statement listing such costs and expenses, but in no event later than five (5) working days from and after each such submission. 10.3 City's Right to Relinquish Possession It is further mutually agreed that City may at any time at its discretion relinquish possession of any or all of the above-mentioned property to Contractor and thereupon demand that Contractor resume the Solid Waste Handling Services as provided in this Agreement, whereupon Contractor shall be bound to resume the same. Draft, March 13, 2012 -100- City of Hermosa Beach 10.4 City's Possession Not A Taking It is expressly agreed between the Parties that City's exercise of its rights under this article; (1) does not constitute a taking of private property for which compensation must be paid, (2) shall not create any liability on the part of City to Contractor, and (3) does not exempt Contractor from any of the indemnity and insurance provisions of this Agreement, which are meant to extend to circumstances arising under this section provided that Contractor is not required to indemnify City against claims and damages arising from the sole negligence of City, its elective and appointive boards, commissions, officers, employees and agents in the operation of Collection vehicles during the time City has taken possession of such vehicles. 10.5 Duration of City's Possession City's right pursuant to this Article to retain temporary possession of Contractor's facilities and equipment, and to render Collection services, shall terminate when City determines that such services can be resumed by Contractor, or when City no longer reasonably requires such property or equipment. In any case, City has no obligation to maintain possession of Contractor's property or equipment and/or continue its use for any period of time and may at any time, in its sole discretion, relinquish possession to Contractor. Draft, March 13, 2012 -101- City of Hermosa Beach ARTICLE 11 DEFAULT, REMEDIES AND LIQUIDATED DAMAGES 11.1 Events of Default All provisions of this Agreement to be performed by Contractor are considered material. Each of the following (by way of example and not as an exhaustive list) shall constitute an event of default by the Contractor. A. Fraud or Deceit or Misrepresentation. If the Contractor engages in, or attempts to practice, any fraud or deceit upon City or makes a misrepresentation regarding material information to City. B. Insolvency or Bankruptcy. If Contractor becomes insolvent, unable, or unwilling to pay its debts, files a bankruptcy petition or takes steps to liquidate its assets. C. Failure to Maintain Insurance Coverage and Valid Permits and Licenses. If Contractor fails to provide or maintain in full force and effect the Workers' Compensation, liability, or indemnification coverage, as well as valid permits and licenses as required by this Agreement. D. Violations of Regulation. If Contractor violates any orders or filings of any regulatory body having jurisdiction over Contractor relative to this Agreement, provided that Contractor may contest any such orders or filings by appropriate proceedings conducted in good faith, in which case no breach of the Franchise and this Agreement shall be deemed to have occurred until a final decision adverse to the Contractor is entered. E. Failure to Pay. If Contractor fails to make any payments required under this Agreement and/or refuses to provide City, within ten (10) days of the demand, with required information, reports, and/or records in a timely manner as provided for in the Agreement. F. Failure to Cooperate with Audits. Failure to complete, perform or cooperate with any audit as described by this Agreement. Draft, March 13, 2012 -102- City of Hermosa Beach G. Failure to Submit Reports or Documentation. Failure to complete or to provide required reports or documents to City as required by this Agreement. H. Acts or Omissions. A. Any act or omission by Contractor relative to the services provided under this Agreement which violates the terms, conditions, or requirements of this Agreement, or AB 939, or any law, statute, ordinance, order, directive, rule, or regulation issued pursuant to AB 939 shall constitute a default by Contractor. Any failure to correct or remedy any such violation within the time set in the written notice of the violation or, if Contractor cannot reasonably correct or remedy the breach within the time set forth in such notice, if Contractor should fail to commence to correct or remedy such violation within the time set forth in such notice and diligently effect such correction or remedy thereafter, shall constitute a default by Contractor. B. Any situation in which Contractor or any of its officers, directors or employees is found guilty of any crime related to the performance of this Agreement, or of any crime related to anti-trust activities, illegal transport or Disposal of hazardous or toxic materials, or bribery of public officials shall constitute a default by Contractor. The term “found guilty” shall be deemed to include any judicial determination that Contractor or any of Contractor’s officers, directors or employees is guilty as well as any admission of guilt by Contractor or any of Contractor’s officers, directors or employees including, but not limited to, the plea of “guilty”, “nolo contendere”, “no contest”, and “guilty to a lesser charge.” I. False or Misleading Statements. Any representation or disclosure made to City by Contractor in connection with or as an inducement to entering into this Agreement, or any future amendment to this Agreement, which proves to be false or misleading in any material respect as of the time such representation or disclosure is made, whether or not any such representation or disclosure appears as part of this Agreement. J. Attachment. The seizure of, attachment of, or levy on, the operating equipment of Contractor, including, without limits, its equipment, maintenance or office facilities, or any part thereof. K. Suspension or Termination of Service. If Contractor ceases to provide all or a portion of the Collection, processing or Recycling services, or any other Solid Waste Handling Services as required under this Agreement (including, without limitation, Draft, March 13, 2012 -103- City of Hermosa Beach failure to provide service due to labor unrest including strike, work stoppage or slowdown, sick-out, picketing, or other concerted job action, unless all requirements of Section 11.4 are met) for two (2) or more consecutive days. L. Failure to Provide Assurance of Performance. If Contractor fails to provide reasonable assurances of performance as required under Section 11.6. M. Commingling of Recyclables With Refuse / Landfilling of Recyclables. If Contractor empties Containers of properly set out Recyclable Materials or Green Waste into a Refuse load, or transports Recyclable Materials or Green Waste to a landfill or other location at which the material will not be diverted from landfilling (with the exception of Green Waste used as alternative daily cover provided full Diversion credit is received). N. Failure to Meet Section 4.2.5 Diversion Goal. Failure to meet the minimum recycling requirements identified in Section 4.2.5 for two (2) consecutive calendar years. Contractor shall have five (5) business days from the time it is given notification by City to cure any default arising under subsections E, F, G, J, K, L and M provided, however, that City shall not be obligated to provide Contractor with a notice and cure opportunity if Contractor has committed the same or similar breach within a twenty- four (24) month period. It is expressly understood that Contractor is not entitled to receive notice of default, or to cure such default, with respect to those matters listed in subsections A, B, C, D, H, I, and N above. 11.2 Right to Terminate Upon Default and Right to Specific Performance If Contractor commits a material breach included in Section 11.1 above (and, if permitted to cure, does not cure it within the five days), City shall be entitled to unilaterally terminate this Agreement or impose other such sanctions (which may include financial sanctions, temporary suspensions or any other conditions it deems appropriate short of termination) as it shall deem proper. Should City decide to terminate this Agreement upon a default by Contractor, City shall have the right to do so upon giving ten (10) days’ notice to Contractor, and shall not be required to take any further action (such as holding any hearing, bringing any suit or taking any other action.) Draft, March 13, 2012 -104- City of Hermosa Beach City may seek to revoke or suspend this Agreement for violation of any other provisions of this Agreement in accordance with the Hermosa Beach Municipal Code Section 8.12.090-130. City's rights to terminate this Agreement and to take possession of Contractor's Facility and/or equipment are not exclusive, and City's termination of this Agreement shall not constitute an election of remedies. Instead, such remedies shall be in addition to any and all other legal and equitable rights and remedies which City may have. By virtue of the nature of this Agreement, the urgency of timely continuous and high- quality service, the time required to effect alternative service, and the rights granted by City to Contractor, the remedy of damages for a breach hereof by Contractor is inadequate and City shall be entitled to seek injunctive relief and/or specific performance of any breach of this Agreement. 11.3 Liquidated Damages A. General. 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 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. B. 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 Draft, March 13, 2012 -105- City of Hermosa Beach 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 under this Article 11, 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 City Initial Here Initial Here Contractor agrees to pay (as liquidated damages and not as a penalty) the amounts set forth below: 1. Collection Reliability a) For each failure to commence service to a new Customer account within seven (7) days after order, which exceeds five (5) such failures per calendar year: $50.00 b) For each failure, which exceeds ten (10) such failures annually, to Collect Solid Waste from any established Customer account on the scheduled Collection day and not make up the Collection within the time allotted per Section 4.6.1.3: $50.00 Draft, March 13, 2012 -106- City of Hermosa Beach 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: $50.00 2. Collection Quality a) For each occurrence of failure to properly return empty Containers to avoid pedestrian or vehicular traffic impediments or to place Containers upright which exceeds ten (10) such occurrences per calendar year: $25.00 b) For each occurrence in violation of the City’s noise ordinance which exceeds ten (10) per calendar year: $150.00 c) For each occurrence of Collecting Solid Waste during unauthorized hours which exceeds five (5) such occurrences per calendar year: $150.00 d) For each failure to clean up Solid Waste spilled from Solid Waste Containers within ninety (90) minutes which exceeds ten (10) such failures per calendar year: $150.00 3. Customer Responsiveness a) For each failure to initially respond to a Customer complaint within one (1) business day in accordance with Section 5.1.2, and for each additional day in which the complaint is not addressed, which exceeds five (5) per calendar year: $100.00 b) For each failure to process Customer complaints as required by Article 5, Section 5.1.2, which exceeds five (5) per calendar year: $100.00 c) For each failure to remove graffiti from Containers, or to replace with Containers bearing no graffiti, within twenty-four (24) hours (except Sundays and holidays) of request from City or Customer, which exceeds five (5) per calendar year: $ 50.00 per day d) For each failure to repair or replace a damaged or missing Container within three (3) business days of request from City or Customer, which exceeds five (5) per calendar year: $ 50.00 per day Draft, March 13, 2012 -107- City of Hermosa Beach e) For each failure to process a claim for damages within thirty (30) days from the date submitted to Contractor: $100.00 f) For each additional thirty (30) day increment of time in which Contractor has failed to resolve a claim for damages within thirty (30) days from the claim date: $100.00 4. Diversion Efforts a) For each calendar year in which Contractor fails to provide support to the City within thirty (30) days of year-end, documenting that it diverted at least the minimum tonnage required by Section 4.2.5 under this Agreement: $25 for each ton below tonnage level necessary to meet Diversion goal b) For every Recycling or Green Waste Container Collected as Refuse without issuing a red tag per Section 4.2.3 which exceeds ten (10) failures per calendar year: $25 per Cart 5. Timeliness of Submissions to City 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: i) Monthly Reports: $50 per day ii) Annual Reports: $100 per day 6. Accuracy of Billing Each Customer invoice that is not prepared in accordance with the City’s approved rate schedule, or includes charges not identified on the City-approved rate schedule or otherwise approved in writing by the City, in excess of ten (10) invoices annually, and that are not accurately corrected in the next Billing run: $25 per invoice, not to exceed $2,500 per Billing run 7. Cooperation with Service Provider Transition Draft, March 13, 2012 -108- City of Hermosa Beach a) For each day routing information requested by City Manager in accordance with Section 12.8 is received after City-established due dates, both for preparation of a request for proposals and for new service provider’s implementation of service : $1,000/day b) For each day delivery of keys, access codes, remote controls, or other means of access to Solid Waste Containers is delayed beyond one (1) day prior to new service provider servicing Customers with access issues, as described in Section 12.8: $1,000/day c) For delay in not meeting the requirements contained in Sections 7.3 and 12.8 in a timely manner, in addition to the daily liquidated damages for breach under 7(a) and 7(b) above, liquidated damages of: $10,000 City Manager may determine the occurrence of events giving rise to liquidated damages through the observation of its own employees or representative or investigation of Customer complaints. Prior to assessing liquidated damages, City Manager 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 Manager relating to incident(s)/non-performance. Contractor may, within ten (10) days after receiving the notice, request a meeting with City Manager. Contractor may present evidence in writing and through testimony of its employees and others relevant to the incident(s)/non-performance. City Manager will provide Contractor with a written explanation of its determination on each incident(s)/non-performance prior to authorizing the assessment of liquidated damages. The decision of City Manager shall be final. C. Amount. City Manager may assess liquidated damages for each calendar day or event, as appropriate, that Contractor is determined to be liable in accordance with this Agreement. D. Timing of Payment. Contractor shall pay any liquidated damages assessed by City Manager within ten (10) days after they are assessed. If they are not paid within the ten (10) day period, City may proceed against the performance bond required by the Agreement or find Contractor in default and terminate this Agreement pursuant to Section 11.2, or both. Draft, March 13, 2012 -109- City of Hermosa Beach 11.4 Excuse from Performance 11.4.1 Force Majeure The Parties shall be excused from performing their respective obligations hereunder in the event they are prevented from so performing by reason of floods, earthquakes, other natural disasters, war, civil insurrection, riots, acts of any government (including judicial action), and other similar catastrophic events which are beyond the control of and not the fault of the party claiming excuse from performance hereunder. 11.4.2 Labor Unrest Labor unrest, including but not limited to strike, work stoppage or slowdown, sick-out, picketing, or other concerted job action conducted by the Contractor's employees or directed at the Contractor will be considered an excuse from performance to the extent that Contractor meets the terms of this Section 11.4. Notwithstanding other remedies to which the City shall be entitled under this Agreement in event of failure to perform, in the event of Contractor’s failure to perform, or anticipated failure to perform, due to labor unrest, Contractor shall: 1) Provide a contingency plan to the City Manager within ninety (90) days of the execution of this Agreement demonstrating how services will be provided during the period of labor unrest. The contingency plan is subject to City approval, and Contractor shall amend the plan to meet City requirements, including reasonably demonstrating how City’s basic Collection and sanitary needs will be met to the City’s satisfaction. Plan shall address, at a minimum, the priority of Collection by customer type (residents, hospitals, restaurants, nursing homes, etc.) and waste streams, additional Collection options to be provided (drop-off sites, etc.), source of additional personnel to be utilized, and detailed communications procedures to be used. 2) Notify City Manager sixty (60) days prior to the expiration of its drivers’ labor agreement. 3) Meet the requirements agreed to in the contingency plan. 4) Meet requirements of 11.4.3 below. Draft, March 13, 2012 -110- City of Hermosa Beach Contractor shall meet all requirements under this Section or City may choose to revoke this excuse from performance offered under this Agreement and may choose to use enforcement provisions under this Agreement, including Sections 11.1, 11.2 and 11.3, in which case Contractor is not excused from performance and Contractor shall be obligated to continue to provide service notwithstanding the occurrence of any or all of such events. 11.4.3 Procedures In Event of Excused Performance The party claiming excuse from performance under Section 11.4.1 or 11.4.2 shall, within two (2) days after such party has notice of such cause, give the other party notice of the facts constituting such cause and asserting its claim to excuse under this section. Throughout service disruption, Contractor shall: 1) Provide City with a minimum of daily service updates. 2) Notify Customers on a real-time basis as to alternative Collection procedures. At a minimum, Contractor shall update its website and shall provide ongoing updates to City for use on its website, and a “reverse 911” contact method to reach all possible Customers. Should enhanced contact technologies become available, Contractor shall use such methods upon approval from City. The interruption or discontinuance of the Contractor's services caused by one or more of the events excused shall not constitute a default by the Contractor under this Agreement. Notwithstanding the foregoing, however, if the Contractor is excused from performing its obligations hereunder for any of the causes listed in this section for a period of thirty (30) days or more, the City shall nevertheless have the right, in its sole discretion, to terminate this Agreement by giving ten (10) days' notice, in which case the provisions relative to taking possession of Contractor’s land, equipment and other property and engaging the Contractor's personnel in Article 10 and this Article 11 will apply. 11.5 Notice, Hearing and Appeal of City Breach (A) 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. A hearing officer shall be appointed by the City Manager, and the hearing shall occur as soon as reasonably possible, or on Draft, March 13, 2012 -111- City of Hermosa Beach such date as mutually agreed 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 shall be advisory only. (B) 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 a 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 officers decision. (C) 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. 11.6 Assurance of Performance City may, at its option and in addition to all other remedies it may have, demand from Contractor reasonable assurances of timely and proper performance of this Agreement, in such form and substance as City may require. If Contractor fails or refuses to provide satisfactory assurances of timely and proper performance in the form and by the date required by City, such failure or refusal shall be an event of default. Draft, March 13, 2012 -112- City of Hermosa Beach ARTICLE 12 MISCELLANEOUS PROVISIONS 12.1 Relationship of Parties The Parties intend that Contractor shall perform the services required by this Agreement as an independent contractor engaged by City and not as an officer or employee of City, nor as a partner of or joint venture with City. No employee or agent or Contractor shall be or shall be deemed to be an employee or agent of City. Except as expressly provided herein, Contractor shall have the exclusive control over the manner and means of conducting the Solid Waste Handling Services performed under this Agreement, and all Persons performing such services. Contractor shall be solely responsible for the acts and omissions of its officers, employees, Affiliates, contractors, subcontractors and agents. Neither Contractor nor its officers, employees, Affiliates, contractors, subcontractors and agents shall obtain any rights to retirement benefits, workers' compensation benefits, or any other benefits which accrue to City employees by virtue of their employment with City. 12.2 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 and regulations of the United States, the State of California, and any federal, state, regional or local administrative and regulatory agencies, now in force and as they may be enacted, issued or amended, including but not limited to the payment of prevailing wage, if applicable. 12.3 Governing Law This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California. 12.4 Jurisdiction Except for those matters where Federal Courts have exclusive jurisdiction, any lawsuits between the Parties arising out of this Agreement shall be brought and concluded in the courts of the State of California, which shall have exclusive jurisdiction over such lawsuits. Draft, March 13, 2012 -113- City of Hermosa Beach With respect to venue, the Parties agree that this Agreement is made in and will be performed in Los Angeles County. 12.5 Assignment Except as may be provided for in Article 10 (City's Right to Perform Service), Contractor shall not assign its rights, nor delegate, subcontract or otherwise transfer its obligations under this Agreement (collectively referred to as an “assignment”) to any other Person without the prior written consent of City. Any such assignment made without the consent of City shall be void and the attempted assignment shall constitute a material breach of this Agreement. 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 outstanding common stock of Contractor to a third party provided said sale, exchange or transfer may result in a change of control of Contractor; (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 of 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; and (v) 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. Contractor acknowledges that this Agreement involved 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 Draft, March 13, 2012 -114- City of Hermosa Beach 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. If Contractor requests City's consideration of and consent to an assignment, City may deny or approve such request in its sole and absolute discretion. Any request for an assignment must be approved 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 pay City its reasonable expenses for attorney's fees and investigation 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. An advance payment towards expenses may be requested by City prior to City consideration of any assignment request and 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) Contractor shall pay a transfer fee to the City equal to one percent (1%) of the annual Gross Receipts for the most recent twelve (12) months prior to the effective date of the change of ownership, multiplied by the number of remaining years, or fraction thereof, under this Agreement. (This requirement will not be required in the event of an assignment to an Affiliate of Contractor); c) Contractor shall furnish City with audited financial statements for itself, and the proposed assignee's operations for the immediately preceding three (3) operating years. (This requirement shall not be required of an Affiliate.) d) Contractor shall furnish City with a pro-forma financial statement (income statement and balance sheet) for the proposed assignee with the projected results of operations assuming that the assignment is completed. Such pro-forma financial statement shall reflect any debt to be incurred by the assignee as part of the acquisition of Contractor’s operations. (This requirement shall not be required of an Affiliate.) Draft, March 13, 2012 -115- City of Hermosa Beach e) 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 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 jurisdiction over its Solid Waste management operations due to any significant failure to comply with state, federal or local Environmental Laws and that the assignee has provided City with a complete list of any 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. Under no circumstances shall City be obliged to consider any proposed assignment by City if Contractor is in default at any time during the period of consideration. Should City consent to any assignment request, such assignment shall not take effect until all conditions relating to City’s approval have been met. 12.6 Contracting or Subcontracting Contractor shall not utilize any subcontractors, in direct interaction with City customers or City staff, for the performance of the services under this Agreement, except with the consent of the City Manager, which may be withheld or delayed at its sole and absolute discretion. 12.7 Binding on Assigns The provisions of this Agreement shall inure to the benefit to and be binding on the permitted assigns (if any) of the Parties. 12.8 Cooperation in Preparation for Termination or Expiration of Contract Prior to, and 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 Draft, March 13, 2012 -116- City of Hermosa Beach subsequent Solid Waste enterprise it designates to assure a smooth transition of Solid Waste Handling 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. Cooperation is required in a timely manner to assist with the City’s preparation of a request for proposals or a new agreement, as well as at the time of transition. 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 a new service provider with all keys, security codes and remote controls used to access garages and Bin enclosures. Contractor shall be responsible for coordinating transfer immediately after Contractor’s final pickups, so as not to disrupt service. 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 ninety (90) days prior to the transition date, and provide an updated list two (2) weeks before the transition and a final list of changes the day before the transition. Contractor shall provide means of access to the new service provider at least one (1) full business day prior to the first day of Collection by another party, and always within sufficient time so as not to impede in any way the new service provider from easily servicing all Containers. 12.9 Parties in Interest Nothing in this Agreement, whether express or implied, is intended to confer any rights on any Persons other than the Parties to it and their representatives, successors and permitted assigns. 12.10 Waiver The waiver by either party of any breach or violation of any provisions of this Agreement shall not be deemed to be a waiver of any breach or violation of any other provision nor of any subsequent breach of violation of the same or any other provision. The subsequent acceptance by either Party of any moneys which become due hereunder shall not be deemed to be a waiver of any pre-existing or concurrent breach or violation by the other Party of any provision of this Agreement. Draft, March 13, 2012 -117- City of Hermosa Beach 12.11 Contractor's Investigation Contractor has made an independent investigation (satisfactory to Contractor) of the conditions and circumstances surrounding the Agreement and the work to be performed by it. 12.12 Condemnation City fully reserves the rights to acquire Contractor's property utilized in the performance of this Agreement, by purchase or through the exercise of the right of eminent domain. This provision is additive, and not intended to alter the rights of the Parties set forth in Article 10. 12.13 Notice All notices, demands, requests, proposals, approvals, consents and other communications which this Agreement requires, authorizes or contemplates shall be in writing and shall either be personally delivered to a representative of the Parties at the address below or be deposited in the United States mail, first class postage prepaid, addressed as follows: If to City: City Manager City of Hermosa Beach 1315 Valley Drive Hermosa Beach, California 90254 If to Contractor: ___________________ ___________________ ____________________ ____________________ The address to which communications may be delivered may be changed from time to time by a written notice given in accordance with this section. Notice shall be deemed given on the day it is personally delivered or, if mailed, three (3) days from the date it is deposited in the mail. Draft, March 13, 2012 -118- City of Hermosa Beach 12.14 Representatives of the Parties References in this Agreement to the "City" shall mean the City Council and all actions to be taken by City shall be taken by the City Council except as expressly provided herein. The City Council may delegate, in writing, authority to the City Manager, and/or to other City employees and may permit such employees, in turn, to delegate in writing some or all of such authority to subordinate employees. Contractor may rely upon actions taken by such delegates if they are within the scope of the authority so delegated to them. Contractor shall, by the Effective Date, designate in writing a responsible officer who shall serve as the representative of Contractor in all matters related to the Agreement and shall inform City in writing of such designation and of any limitations upon his or her authority to bind Contractor. City may rely upon action taken by such designated representative as actions of Contractor unless they are outside the scope of the authority expressly delegated to him/her by Contractor as communicated to City. 12.15 City Free to Negotiate with Third Parties City may investigate all options for the Collection, transporting, Recycling, processing and Disposal of Solid Waste for periods during which this Agreement has expired or been terminated. Without limiting the generality of the foregoing, City may solicit proposals from Contractor and from third parties for the provision of Solid Waste Handling Services which are the subject of this Agreement, including without limitation Collection services, Disposal services, Recycling services, Green Waste services and processing, and any combination thereof, and may negotiate and execute agreements for such services which will take effect upon the expiration or earlier termination of this Agreement pursuant to Section 11.1 or otherwise. 12.16 Compliance with Municipal Code Contractor shall comply with those provisions of the municipal code of City which are applicable, and with any and all amendments to such applicable provisions during the Term of this Agreement. Draft, March 13, 2012 -119- City of Hermosa Beach 12.17 Privacy Contractor shall strictly observe and protect the rights of privacy of Customers. Information identifying individual Customers or the composition or contents of a Customer's waste stream shall not be revealed to any Person, governmental unit, private agency, or company, unless upon the authority of a court of law, by statute, 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 stream analyses which may be required by AB 939. This provision shall not apply to reports or records provided to City pursuant to this Agreement. 12.18 Proprietary Information, Public Records The City acknowledges that a number of the records and reports of Contractor are proprietary and confidential. Contractor is obligated to permit City inspection of its records on demand and to provide copies to City where requested. City will endeavor to maintain the confidentiality of all proprietary information provided by Contractor. Notwithstanding the foregoing, any documents provided by Contractor to City that are public records may be disclosed pursuant to a proper public records request. 12.19 Entire Agreement This Agreement contains the entire integrated agreement and understanding concerning the subject matter herein and supersedes and replaces any prior negotiations, promises, proposals (including Contractor’s Proposal), 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. 12.20 Section Headings The article headings and 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. Draft, March 13, 2012 -120- City of Hermosa Beach 12.21 References to Laws and Other Agreements All references in this Agreement to laws shall be understood to include such laws as they may be subsequently amended or re-codified, unless otherwise specifically provided. 12.22 Interpretation This Agreement, including the Exhibits attached hereto, shall be interpreted and construed reasonably and neither for nor against either Party, regardless of the degree to which either Party participated in its drafting. 12.23 Agreement This Agreement may not be modified or amended in any respect except by a writing signed by the Parties. 12.24 Severability If any non-material provision of this Agreement is for any reason deemed to be invalid and unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this Agreement which shall be enforced as if such invalid or unenforceable provision had not been contained herein. 12.25 Exhibits Each of Exhibits identified as Exhibit "1" through "7" is attached hereto and incorporated herein and made a part hereof by this reference. 12.26 Attorneys’ Fees If either Party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to recover its reasonable attorney’s fees and costs. Attorneys’ fees shall include attorney’s fees on any appeal, and in addition a Party entitled to attorney’s fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to Draft, March 13, 2012 -121- City of Hermosa Beach have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. Draft, March 13, 2012 -122- City of Hermosa Beach IN WITNESS WHEREOF, City and Contractor have executed this Agreement as of the day and year first above written. CITY OF HERMOSA BEACH ("City") DATED: _______________________________ DATED: _______________________________ CITY OF HERMOSA BEACH [Contractor] By: ____________________________________ By: ____________________________________ [Name] [Name] Mayor [Title] Approved as to form: By: ____________________________________ By: ____________________________________ [Name] [Name] City Attorney [Title] ATTEST: _______________________________________ [Name] City Clerk Draft, March 13, 2012 1 City of Hermosa Beach EXHIBIT 1 CONTRACTOR’S PROPOSAL Draft, March 13, 2012 City of Hermosa Beach EXHIBIT 2 INITIAL MAXIMUM RATES Following are the rates for January 1, 2013through December 31, 2013: Monthly Residential Cart Service Rates (Option 1: Cart System) Standard Service Includes one refuse cart and one or more recycling carts. Green waste carts are provided on a subscription basis. Cart Size: 35-gallon 64-gallon 96-gallon Standard Service – based upon refuse cart size $______ $______ $______ Additional Refuse Cart – above one $4.00 $6.00 $8.00 Additional Recycling Cart $0 $0 $0 Each Yard Waste Cart $______ $______ $______ Monthly Residential Service Rates (Option 2: Single Stream) Standard Service – Unlimited Co-Collection of Refuse and Recyclables: $_______ Green Waste Opt-In Program: No charge Other Cart Rates and Services (Charged in Addition to Monthly Cart Service Rates) Walk-Out Service – upon request $_____ Walk-Out Service – authorized disabled customers No charge Additional Special Overage Pickup for Automated Cart Customers (in excess of two pickups per year) $5 per pickup Additional Bulky Item pickups (in excess of two free pickups per dwelling unit per year) $40.50 per pickup Cart Exchange (in excess of free exchanges to be provided) $15 per request Returned Check (“NSF”) Fee (applicable to all customers) Credit Card Declined Fee (applicable to all customers) *Including all City fees. Draft, March 13, 2012 City of Hermosa Beach EXHIBIT 2 INITIAL MAXIMUM RATES (continued) Following are the rates for January 1, 2013 through December 31, 2013: Monthly Bin Rates* Container Size Pickups per week 1 2 3 4 5 6 Extra Empty** Refuse 32-gallon cart 64-gallon cart 96-gallon cart 1 yard bin $40.50 1.5 yard bin $40.50 2 yard bin $40.50 3 yard bin $52.07 4 yard bin $52.07 6 yard bin $52.07 8 yard bin $61.78 3 yard compactor Recycling 18-gallon cart 32-gallon cart 64-gallon cart 96-gallon cart 1 yard bin MAXIMUM RECYCLING RATES TO BE SET AT 50% OF COMPARABLE REFUSE RATES 2 yard bin 3 yard bin 4 yard bin Locking Bin Service $5.79 $5.79 $5.79 $5.79 $5.79 $5.79 Scout Truck Service $11.57 $11.57 $11.57 $11.57 $11.57 $11.57 Push-Out Service $11.57 $11.57 $11.57 $11.57 $11.57 $11.57 *Including all City fees. Draft, March 13, 2012 City of Hermosa Beach EXHIBIT 2 INITIAL MAXIMUM RATES (continued) Following are the rates for January 1, 2013 through December 31, 2013: Additional Service Charges Rate Per Service* Porter Service (total amount to be shared by affected customers per Section 4.1.14) $_______ per month Commercial Bulky Item Pickup: - 1 to 2 items $27.31/pickup - 3 to 5 items $54.61/pickup - 6 to 10 items $109.21/pickup - Each additional item on same pickup $27.31/add’l item Bin Return Trip/Dry Run Fee Bin Re-delivery Fee (if bins are pulled for non-payment) Bin Cleaning (over once per year) $40.00 3-yard Temporary Bin - Per dump (delivery, disposal and 7-day rental included) - Rental per day after 7 days without a dump Special Event Litter Boxes - Rate per box $_____ - Rate per liner $_____ Emergency Service Rates – one crew and one collection truck *Including all City fees. Draft, March 13, 2012 City of Hermosa Beach EXHIBIT 2 INITIAL MAXIMUM RATES (continued) Following are the rates for January 1, 2013 through December 31, 2013: Roll-off Box Charges Rate* Roll-off Box Service – Pull Plus Dump Standard Roll-off Box - Rate per pull (including delivery, and rental) - Standard roll-off box (any size) - Compactor roll-off box Per Ton Rate COD Roll-off Box Service Standard Roll-off Box - Rate per pull (including delivery, 7-day rental and disposal up to seven tons) Per day rental after 7 days without a pull Per Ton Rates - for each ton over seven tons/load Additional Roll-off Box Fees - Overweight charge (per ton over ten tons/load) - Dry Run/Redelivery/Return Trip/Relocation Fee *Including all City fees. Draft, March 13, 2012 City of Hermosa Beach EXHIBIT 2 INITIAL MAXIMUM RATES (continued) AB 939 Fees Included in the Above Rates 1234567 32-Gallon Cart 0.17$ 0.34$ 0.51$ 0.68$ 0.85$ 1.02$ 1.19$ 64-Gallon Cart 0.35$ 0.70$ 1.05$ 1.40$ 1.75$ 2.10$ 2.45$ 96-Gallon Cart 0.51$ 1.02$ 1.53$ 2.04$ 2.55$ 3.06$ 3.57$ 1 Cubic Yard 1.08$ 2.16$ 3.24$ 4.32$ 5.40$ 6.48$ 7.56$ 1.5 Cubic Yard 1.62$ 3.24$ 4.86$ 6.48$ 8.10$ 9.72$ 11.34$ 2 Cubic Yard 2.17$ 4.34$ 6.51$ 8.68$ 10.85$ 13.02$ 15.19$ 3 Cubic Yard 3.25$ 6.50$ 9.75$ 13.00$ 16.25$ 19.50$ 22.75$ 4 Cubic Yard 4.33$ 8.66$ 12.99$ 17.32$ 21.65$ 25.98$ 30.31$ 6 Cubic Yard 6.50$ 13.00$ 19.50$ 26.00$ 32.50$ 39.00$ 45.50$ 8 Cubic Yard 8.66$ 17.32$ 25.98$ 34.64$ 43.30$ 51.96$ 60.62$ Refuse Container Size Number of Collections per Week Container/Service Type Roll-Off Box Pulls Standard Roll-Off Box - 20, 30, 40 yard 10.00$ per pull Compactor Roll-Off Box - 20 yard 5.00$ per pull Compactor Roll-Off Box - 30 yard 7.50$ per pull Compactor Roll-Off Box - 40 yard 10.00$ per pull Temporary Bin 3 Cubic Yard 0.75$ per dump AB 939 Fee Draft, March 13, 2012 City of Hermosa Beach EXHIBIT 3A EXAMPLE RATE ADJUSTMENT FORMULA – CART & BIN Row Adjustment Factor Index 1 Labor (1) 109.7 112.2 2.3% 2 Fuel (2) 170.6 173.2 1.5% 3 Equipment (3) 125.1 129.1 3.2% 4 Disposal (4) 219.960 221.931 0.9% 5 All Other (5) 219.960 221.931 0.9% Row Adjustment Factor Index 6 Labor (1) 25.0% 2.3% 0.6% 7 Fuel (2) 8.0% 1.5% 0.1% 8 Equipment (3) 15.0% 3.2% 0.5% 9 Disposal (4) 25.0% 0.9% 0.2% 10 All Other (5) 27.0%0.9% 0.2% 11 Total 100.0% 1.6% Row Example Rate Categories 12 Res. service w/64-gal. refuse 12.00$ 1.6% 0.19$ 12.19$ 13 Res. service w/32-gal. refuse 8.00$ 1.6% 0.13$ 8.13$ 14 Extra 64-gal refuse cart 6.00$ 1.6% 0.10$ 6.10$ 15 Extra 32-gal refuse cart 4.00$ 1.6% 0.06$ 4.06$ 16 Alt.= Residential rate 14.00$ 1.6% 0.22$ 14.22$ 17 3 cu.yd. bin 1x week 183.00$ 1.6% 2.93$ 185.93$ 18 3 cu.yd. bin 2x week 230.00$ 1.6% 3.68$ 233.68$ 19 3 yd bin, extra pickup 52.00$ 1.6% 0.83$ 52.83$ 20 Commercial 96 gal. cart 22.00$ 1.6% 0.35$ 22.35$ Row Adjustment Factor Index 21 Labor (1) 25.0% 2.3% 0.6% 25.6% 25.2% 22 Fuel (2) 8.0% 1.5% 0.1% 8.1% 8.0% 23 Equipment (3) 15.0% 3.2% 0.5% 15.5% 15.3% 24 Disposal (4) 25.0% 0.9% 0.2% 25.2% 24.8% 25 All Other (5) 27.0%0.9% 0.2% 27.2%26.7% 26 Total 100.0% 101.6% 100.0% (4) Consumer Price Index for All Urban Consumers, less food and energy, U.S. city average - average annual change* or TBD. (5) Consumer Price Index for All Urban Consumers, less food and energy, U.S. city average - average annual change.* (7) Example rates listed. Adjustment applies to all applicable rate categories. * See Exhibit 3C. (1) Employment Cost Index CIU20100005200000I, Total compensation, Private industry, Index number, Transportation and material moving - average annual change.* (2) Producer Price Index, WPU 0531 not seasonally adjusted, Fuels and related products and power, natural gas - average annual change.* (6) First year based on Section 6.4. After the first adjustment, this coumn comes from Column O of the previous year's rate adjustment worksheet. Adjusted Rate (Column G + Column I) Rate Increase or Decrease (Column G x Column H) Current Customer Rate (7) Total Weighted Percentage Change (from Column F) Step Four: Re-weight cost components Cost Component (Column D) Percent Change in Index (Column E) Adjusted Cost Component Weightings (Column K + Column M) N GJ Step Three: Apply percentage change to rates Change in Cost Component Weightings (Column K x Column L) K OM Cost Components Reweighted to Equal 100% (Column N Row divided by Column N Total) New Index Value Percent Change In Index ((Column B/ Column A) -1) EF I Total Weighted Change (Columns D x E) Cost Factor Category Weighted as a % of Component Total (6) L (3) Producer Price Index, PCU336120336120, Heavy duty truck manufacturing - average annual change.* D Step Two: Determine components Old Index Value Percent Change In Index (from Column C) H Draft, March 13, 2012 City of Hermosa Beach EXHIBIT 3B EXAMPLE RATE ADJUSTMENT FORMULA – ROLL-OFF BOX Row Adjustment Factor Index 1 2 Labor (1) 109.7 112.2 2.3% 3 Fuel (2) 170.6 173.2 1.5% 4 Equipment (3) 125.1 129.1 3.2% 5 All Other (4) 219.960 221.931 0.9% 6 Refuse/Ton (5) 219.960 221.931 0.9% Row Adjustment Factor Index 7 8 Labor (1) 48.4% 2.3% 1.1% 9 Fuel (2) 6.9% 1.5% 0.1% 10 Equipment (3) 20.0% 3.2% 0.6% 11 All Other (4) 21.1%0.9% 0.2% 12 96.4% n/a 2.0% 13 Refuse/Ton (5) 100.0% 0.9% 0.9% Row 14 168.00$ 2.0%3.36$ 171.36$ 15 337.00$ 2.0%6.74$ 343.74$ 16 Refuse/Ton (5) 36.00$ 0.9%0.32$ 36.32$ Row Adjustment Factor Index 17 Labor (1) 48.4% 2.3% 1.1% 49.5% 50.3% 18 Fuel (2) 6.9% 1.5% 0.1% 7.0% 7.1% 19 Equipment (3) 20.0% 3.2% 0.6% 20.6% 20.9% 20 All Other (4) 21.1%0.9% 0.2% 21.3%21.7% 21 Total 96.4%98.4% 100.0% (4) Consumer Price Index for All Urban Consumers, less food and energy, U.S. city average - average annual change.* (5) TBD. Service Component Total A Service Component (Pull Rate) C Old Index Value B E Service Component (Pull Rate) Cost Factor Category Weighted as a % of Component Total (6) FD Total Weighted Change (Columns D x E)Percent Change In Index (from Step One, Column C) LMN Step One: Calculate percentage change in indices New Index Value Percent Change In Index ((Column B/ Column A) -1) Step Two: Determine components Step Four: Re-weight service component cost components O Current Customer Rate Total Weighted Percentage Change (from Column F) Rate Increase or Decrease (Column H x Column I) Compactor Rolloff Box Pull Rate K Rate Category Step Three: Apply percentage change to rates GH Standard Rolloff Box Pull Rate Adjusted Rate (Column H + Column J) JI * See Exhibit 3C. Change in Cost Component Weightings (Column K x Column L) Adjusted Cost Component Weightings (Column K + Column M) Cost Components Reweighted to Equal 100% (Column N Row divided by Column N Total) Cost Component (Column D) (6) First year based on Section 6.4. After the first adjustment, this coumn comes from Column O of the previous year's rate adjustment worksheet. Percent Change in Index (Column E) (1) Employment Cost Index CIU20100005200000I, Total compensation, Private industry, Index number, Transportation and material moving - average annual change.* (2) Producer Price Index, WPU 0531 not seasonally adjusted, Fuels and related products and power, natural gas - average annual change.* (3) Producer Price Index, PCU336120336120, Heavy duty truck manufacturing - average annual change.* Draft, March 13, 2012 City of Hermosa Beach EXHIBIT 3C EXAMPLE RATE ADJUSTMENT FORMULA - CALCULATION FOR AVERAGE ANNUAL CHANGE IN PUBLISHED PRICE INDICES Rate adjustment indices for labor, fuel, equipment and “all other” are calculated using the “average annual change” as demonstrated in the example below, measured for the twelve months ended the March before each rate adjustment, as compared to the twelve months ended the prior March. The Bureau of Labor Statistics publishes these monthly and quarterly indices. The following example is for the Consumer Price Index for All Urban Consumers all items less food and energy index - U.S. City average that is used to adjust the “all other” cost components. If a rate adjustment based on this CPI index were to be implemented as of January 1, 2011, the twelve-month average annual index for the period ended March 2010 of 221.931 would have been the “New Index Value” to be used in Column B of the example rate adjustment formulas in Exhibits 3A and 3B, and the twelve-month average annual index for the period ended March 2019 219.960 would have been the “Old Index Value” in Column A. This would have resulted in a 0.9% increase to the “all other” cost components in Column C. Consumer Price Index – All Urban Consumers, U.S. City Average All items less food and energy, CUUR0000SAOL1E Year Jan Feb March April May June July August Sept Oct Nov Dec Average 2009 219.143 219.128 219.283 219.35 219.596 220.137 220.731 220.384 220.025 2010 220.086 220.602 221.059 219.960 2010 221.166 221.193 221.265 221.258 221.551 221.907 222.079 222.077 221.795 2011 222.177 223.011 223.69 221.931 Average Annual Change: 0.9% "! "! " ! "! " ! " ! " ! " ! " ! " ! " !" ! " !! " " ! " ! ! " ! " ! " ! ! ! ! ! ! " ! ! ! ! " ! !"! " ! ! !! " ! " ! ! !! " ! " ! ! ! " ! ! ! ! ! " !"! ! " " " " ! " ! ! " ! " ! " ! ! !" !" " ! " " ! !" " ! ! " " ! !"!"! " ! "!! ! ! ! ! !! ! ! ! ! ! ! ! ! "! ! ! ! !! "" !! ! ! ! !! "" !! ! ! !! "" ! ! " ! ! ! " ! " " ! ! ! ! !" "! ! ! ! ! ! ! !! "" ! " ! " ! " ! " ! " !" " ! ! " !! "" " ! " ! ! " !" ! ! ! ! " ! !""! "! "! !" "! " ! "! !"! " ! " ! " !" ! !"!" !" !" !" !" !""! "!"!!" "! !" "! !" " ! " ! !" ! ! ! ! ! !! "" ! " ! " ! " !" "!" ! " ! ! ! ! Moondust Park Edith Rodaway Park Ardmore Park Lot A Lot B Parking Structure12 Trash (Clean Street)2 Recycle Noble Park 4 Trash (True Green) 4 Recycle Jarvis Memorial Sea View Parkette Clark Stadium15 Trash (True Green) 8 Recycle South Park16 Trash (True Green)6 Recycle Valley Park34 Trash (True Green)23 Recycle Palm DrValley DrThe StrandManhattan AveArdmore AveBayview DrProspect AvePacific Coast HwyMonte rey B lvd Beach Dr7th St 8th Pl 5th St 25th St 10th St 6th St Pier Ave 2nd St 14th StHermosa Ave 30th St Harpe r A ve 31th St 32th Pl 16th St Gould Ave 29th St Sunset Dr28th St Ocean Dr31th Pl 30th Pl Alley 33rd St 17th St 33th Pl 29th Ct 1st St 28th Ct 3rd St 7th PlLoma D r Aviation Blvd8th St 24th Pl 9th St 27th St 1st Pl 4th St Herondo StOzone C t Longfellow Ave 24th St Artesia Blvd 21st St 13th St 26th St 15th St 19th St Bonnie Brae StOwosso Ave34th St Rhodes StHillcrest Dr11th St Hollowell AveIng les ide D r 20th St Bard StGentry StMyr t le Ave Oak St 20th Pl Gou l d T e r Reynolds LnPower St27th Ct 1st CtPark Ave34th Pl 22nd St Hil l S t Tennyson Pl17th Ct 18th St 18th Ct 16th Ct Porter Ln 15th PlAva Ave11th Pl 19th Ct 14th Ct Circle Dr13th Ct Lyndon St Cypress Ave9th Ct Corona StValley Park Ave11th Ct 8th Ct 15th Ct 12th Ct 20th Ct Hopkins StPier Plaza 10th Ct 7th Ct Gol d e n A v e 35th St Silve r S t 6th Ct Culper CtPine StSilve rs t rand AveHigh land AveMeyer CtEl Oeste Dr21st Ct 5th Ct Springfield Ave4th CtCrest D r 23rd St Campana StOcean View Ave3rd Ct Barney Ct35th Pl Amby PlM o r n i n g s i d e D r Aubrey Park CtMarlita Pl Greenwich VillageRaymond AveBraeholm Pl Borden AveJoy St Circle Ct La Carlita PlMontgomery DrMira StVis ta D r Loma Walk Gravley CtCochise Ave 22nd Ct 24th St 21st St 3rd St 30th St 21st St 3rd StCypress Ave4th St 11th St 5th St Power St20th St Harper Ave30th Pl 1st St 13th St 4th St 7th St 24th St 35th St 25th St 26th St 9th St 19th St 15th St 1st St 24th St 19th St 3rd St 34th St 10th St 2nd St Hillcrest DrBard St6th St 8th St Golden Ave 20th St 1st PlMorn ings ide D r 15th St 11th St 11th Pl 4th St Loma Dr16th St 34th Pl Alley 7th St Lyndon St 18th St Alley18th St Ardmo re Ave Alley 7th St 17th St 14th St 10th StBeach Dr9th St 4th St Oak St H e rm o s a A v e Harpe r Ave 1st StLoma Dr24th St Longfellow Ave 11th St A l l e y Alley21st St1st St 24th Pl 19th St 6th St 11th St 11th Pl City of Hermosa Beach Trash Cans and Recycle Bins Locations "Recycle - managed by Consolidated (Count: 164) !Trash - managed by Consolidated (Count: 89) !Trash - managed by Clean Street (Count: 75) !Trash - managed by True Green (Count: 112) EXHIBIT 4 March 13, 2012 City of Hermosa Beach Draft, March 13, 2012 5 - 1 City of Hermosa Beach EXHIBIT 5 CORPORATE GUARANTY THIS GUARANTY (the “Guaranty) is given as of the ____ day of ____, 2012. THIS GUARANTY is made with reference to the following facts and circumstances: A. ____________________________, hereinafter (“Owner”) is a corporation organized under the laws of the State of California, all of the issued and outstanding stock of which is owned by ______________________, (Guarantor). B. Owner and the City of Hermosa Beach (“the City”) have negotiated an Agreement for Integrated Solid Waste Management Services dated as of _______________, (hereinafter “Agreement”). A copy of this Agreement is attached hereto. C. It is a requirement of the Agreement, and a condition to the City entering into the Agreement, that Guarantor guaranty Owner’s performance of the Agreement. D. Guarantor is providing this Guaranty to induce the City to enter into the Agreement. NOW, THEREFORE, in consideration of the foregoing, Guarantor agrees as follows: 1. Guaranty of the Agreement. Guarantor hereby irrevocably and unconditionally guarantees to the City the complete and timely performance, satisfaction and observation by Owner of each and every term and condition of the Agreement which Owner is required to perform, satisfy or observe. In the event that Owner fails to perform, satisfy or observe any of the terms and conditions of the Agreement, Guarantor will promptly and fully perform, or cause to perform them in the place of the Owner or cause them to be performed, satisfied or observed. Guarantor hereby guarantees payment to the City of any damages, costs or expenses which might become recoverable by the City from Owner due to its breach of the Agreement. 2. Guarantor’s Obligations Are Absolute. The obligations of the Guarantor hereunder are direct, immediate, absolute, continuing, unconditional and unlimited, and with respect to any payment obligation of Owner under the Agreement, shall constitute a guarantee of payment and not of collection, and are not conditional upon the genuineness, validity, regularity or enforceability of the Agreement. In any action Draft, March 13, 2012 5 - 2 City of Hermosa Beach brought against the Guarantor to enforce, or for damages for breach of, its obligations hereunder, the Guarantor shall be entitled to all defenses, if any, that would be available to the Owner in an action to enforce, or for damages for breach of, the Agreement (other than discharge of, or stay of proceedings to enforce, obligations under the Agreement under bankruptcy law). 3. Waivers. Except as provided herein the Guarantor shall have no right to terminate this Guaranty or to be released, relieved, exonerated or discharged from its obligations under it for any reason whatsoever, including, without limitation: (1) the insolvency, bankruptcy, reorganization or cessation of existence of the Owner; (2) the actual or purported rejection by a trustee in bankruptcy of the Agreement, or any limitation on any claim in bankruptcy resulting from the actual or purported termination of the Agreement; (3) any waiver with respect to any of the obligations of the Agreement guaranteed hereunder or the impairment or suspension of any of the City’s rights or remedies against the Owner; or (4) any merger or consolidation of the Owner with any other corporation, or any sale, lease or transfer of any or all the assets of the Owner. Without limiting the generality of the foregoing, Guarantor hereby waives the rights and benefits under California Civil Code Section 2819. The Guarantor hereby waives any and all benefits and defenses under California Civil Code Section 2846, 2849, and 2850, including without limitation, the right to require the City to (a) proceed against Owner, (b) proceed against or exhaust any security or collateral the City may hold now or hereafter hold, or (c) pursue any other right or remedy for Guarantor’s benefit, and agrees that the City may proceed against Guarantor for the obligations guaranteed herein without taking any action against Owner or any other guarantor or pledgor and without proceeding against or exhausting any security or collateral the City may hold now or hereafter hold. City may unqualifiedly exercise in its sole discretion any or all rights and remedies available to it against Owner or any other guarantor or pledgor without impairing the City’s rights and remedies in enforcing this Guaranty. The Guarantor hereby expressly waives, diligence, presentment, demand for payment or performance, protest and all notices whatsoever, including, but not limited to, notices of non-payment or non-performance, notices of protest, notices of any breach or default, and notices of acceptance of this Guaranty. If all or any portion of the obligations guaranteed hereunder are paid or performed, Guarantor’s obligations hereunder shall continue and remain in full force and effect in the event that all or any part of such Draft, March 13, 2012 5 - 3 City of Hermosa Beach payment or performance is avoided or recovered directly or indirectly from the City as a preference, fraudulent transfer or otherwise, irrespective of (a) any notice of revocation given by Guarantor or Owner prior to such avoidance or recovery, and (b) payment in full of any obligations then outstanding. 4. Term. This Guaranty is not limited to any period of time, but shall continue in full force and effect until all of the terms and conditions of the Agreement have been fully performed or otherwise discharged and Guarantor shall remain fully responsible under this Guaranty without regard to the acceptance by the City of any performance bond or other collateral to assure the performance of Owner’s obligations under the Agreement. Guarantor shall not be released of its obligations hereunder so long as there is any claim by the City against Owner arising out of the Agreement based on Owner’s failure to perform which has not been settled or discharged. 5. No Waivers. No delay on the part of the City in exercising any rights under this Guaranty or failure to exercise such rights shall operate as a waiver of such rights. No notice to or demand on Guarantor shall be a waiver of any obligation of Guarantor or right of the City to take other or further action without notice or demand. No modification or waiver of any of the provisions of this Guaranty shall be effective unless it is in writing and signed by the City and by Guarantor, nor shall any waiver be effective except in the specific instance or matter for which it is given. 6. Attorney’s Fees. In addition to the amounts guaranteed under this Guaranty, Guarantor agrees in the event of Guaranty’s breach of its obligations including to pay reasonable attorney’s fees and all other reasonable costs and expenses incurred by the City in enforcing this Guaranty, or in any action or proceeding arising out of or relating to this Guaranty, including any action instituted to determine the respective rights and obligations of the parties hereunder. 7. Governing Law: Jurisdiction. This Guaranty is and shall be deemed to be a contract entered into in and pursuant to the laws of the State of California and shall be governed and construed in accordance with the laws of California without regard to its conflicts of laws, rules for all purposes including, but not limited to, matters of construction, validity and performance. Guarantor agrees that any action brought by the City to enforce this Guaranty may be brought in any court of the State of California and Guarantor consents to personal jurisdiction over it by such courts. Guarantor appoints the following Person as its agent for service of process in California: Draft, March 13, 2012 5 - 4 City of Hermosa Beach ___________ ___________ ___________ ___________ With a copy by certified mail to: ___________ ___________ ___________ ___________ 8. Severability. If any portion of this Guaranty is held to be invalid or unenforceable, such invalidity will have no effect upon the remaining portions of this Guaranty, which shall be severable and continue in full force and effect. 9. Binding On Successors. This Guaranty shall inure to the benefit of the City and its successors and shall be binding upon Guarantor and its successors, including transferee(s) of substantially all of its assets and its shareholder(s) in the event of its dissolution or insolvency. 10. Authority. Guarantor represents and warrants that it has the corporate power and authority to give this Guaranty, that its execution of this Guaranty has been authorized by all necessary action under its Article of Incorporation and By-Laws, and that the Person signing this Guaranty on its behalf has the authority to do so. 11. Notices. Notice shall be given in writing, deposited in the U.S. mail, registered or certified, first class postage prepaid, addressed as follows: To the City: City Manager City of Hermosa Beach 1315 Valley Drive Hermosa Beach, CA 90254-3885 with a copy to the City Counsel at the same address. To the Guarantor: ___________ ___________ ___________ ___________ Draft, March 13, 2012 5 - 5 City of Hermosa Beach ___________ ___________ ___________ ___________ By: ______________________ (title) By: ______________________ (title) Draft, March 13, 2012 City of Hermosa Beach EXHIBIT 6 Contractor's Faithful Performance Bond KNOW ALL MEN BY THESE PRESENTS: That , a California , as PRINCIPAL, and , a Corporation organized and doing business by virtue of the laws of the State of California, and duly licensed for the purpose of making, guaranteeing, or becoming sole surety upon bonds or undertakings required or authorized by the laws of the State of California, as SURETY, are held and firmly bound to City, hereinafter called OBLIGEE, in the penal sum of five hundred thousand dollars ($500,000) lawful money of the United States, for the payment of which, well and truly to be made, we and each of us hereby bind ourselves, and our and each of our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents. NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH THAT: WHEREAS, the above bounden PRINCIPAL has entered into a contract, entitled "INTEGRATED SOLID WASTE MANAGEMENT SERVICES" with City, to do and perform the following work, to wit: Collect, Process and dispose of Solid Waste generated within City, in accordance with the contract. NOW, THEREFORE, if the above bounden PRINCIPAL shall well and truly perform, or cause to be performed each and all of the requirements and obligations of said contract to be performed by said PRINCIPAL, as in said contract set forth, then this BOND shall be null and void; otherwise it will remain in full force and effect. And the said Surety, for value received hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the contract or to the work to be performed there under or the specifications accompanying the same shall in any wise affect its obligations on this BOND, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the contract or to the work or to the specifications. Draft, March 13, 2012 City of Hermosa Beach In the event suit is brought by OBLIGEE to enforce the provisions of this bond, said Surety will pay to OBLIGEE a reasonable attorney’s fee, plus costs of suit, in an amount to be fixed by the court. IN WITNESS WHEREOF, said PRINCIPAL and said SURETY have caused these presents to be duly signed and sealed this day of , 2012. a California Corporation SURETY By: By: (PRINCIPAL) (ATTORNEY IN FACT) (SEAL) (SEAL) Draft, March 13, 2012 City of Hermosa Beach EXHIBIT 7 NOTARY CERTIFICATION STATE OF CALIFORNIA) COUNTY OF ) ss: On , , before me, the undersigned, a Notary Public in and for the State of California, personally appeared , known to me to be the of Contractor that executed the within instrument on behalf of the Contractor therein named, and acknowledged to me that such Contractor executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal in the County of this day of , . Notary Public My Commission Expires: DRAFT THE CITY OF HERMOSA BEACH REQUEST FOR PROPOSALS FOR INTEGRATED WASTE MANAGEMENT SERVICES * * * March 13, 2012 Proposals Due: May 7, 2012, 4:00 p.m. Prepared by: HF&H Consultants, LLC 19200 VON KARMAN AVE., SUITE 360 IRVINE, CA 92612 Telephone: 949/251-8628 Fax: 949/251-9741 March 13, 2012 i City of Hermosa Beach CITY OF HERMOSA BEACH REQUEST FOR PROPOSALS FOR INTEGRATED WASTE MANAGEMENT SERVICES TABLE OF CONTENTS Page Section I Introduction 1 OVERVIEW OF THE REQUEST FOR PROPOSAL 1 TERM OF NEW AGREEMENT 1 SUMMARY OF REQUESTED SERVICES 1 PROPOSAL CLARIFICATIONS AND UPDATES 2 PROCESS INTEGRITY GUIDELINES AND COMMUNICATIONS DURING RFP PROCESS 3 PROPOSAL ADMINISTRATION 3 SUBMISSION OF PROPOSALS 4 PROPOSAL REPRODUCTION 5 SCHEDULE 5 Section II Current Service Data 6 DESCRIPTION OF SERVICE AREA 6 CURRENT SERVICE DATA 6 CURRENT RATES 6 RATE REVENUES 6 AB 939 PLANS 7 Section III Proposed Service Requirements 8 RESIDENTIAL SERVICE 8 OPTION 1: CART SYSTEM 8 OPTION 2: SINGLE STREAM 9 RESIDENTIAL GREEN WASTE COLLECTION – OPT-IN PROGRAM 9 RESIDENTIAL BIN AND COMMERCIAL COLLECTION SERVICES 10 SPECIAL SERVICES 12 CITY AND OTHER SERVICES 12 Section IV Key Contract Terms 14 MANDATORY COLLECTION 14 HOLIDAY COLLECTION 14 EDUCATION AND PUBLIC AWARENESS 14 FAITHFUL PERFORMANCE BOND AND LETTER OF CREDIT 14 REPORTING AND AUDITING 14 MINIMUM DIVERSION RATES 15 COLLECTION VEHICLE REQUIREMENTS 15 March 13, 2012 ii City of Hermosa Beach TABLE OF CONTENTS (continued) Page DEDICATED ROUTES 15 FEES/FUNDING 15 BILLING 16 RATE ADJUSTMENT METHOD 16 Section V Proposal Submission Requirements 17 GENERAL REQUIREMENTS 17 RATE PROPOSAL FORMS (ATTACHMENT 3) 17 SUPPORTING COST AND OPERATING DATA (ATTACHMENT 4) 17 EXCEPTIONS TO TERMS OF THE FRANCHISE AGREEMENT 18 PROPOSER OVERVIEW 18 FACILITY DESCRIPTIONS REQUIRED IN PROPOSAL 21 RATE ADJUSTMENT TERMS/DISPOSAL COMPONENT 22 IMPLEMENTATION PLAN 22 COLLECTION VEHICLE DESCRIPTION 22 DIVERSION GOAL AND ADDITIONAL DIVERSION PROGRAMS 23 OPTIONAL HHW PROGRAM 23 OPTIONAL FOOD WASTE PROGRAM 24 PUBLIC EDUCATION 24 DOWNTOWN AREA COMMERCIAL COLLECTION CHALLENGES 24 CART DISTRIBUTION 24 OPT-IN GREEN WASTE PROGRAM 25 ADDITIONAL PROPOSAL REQUIREMENTS 25 PROPOSAL ENHANCEMENTS 25 Section VI Proposal Evaluations 27 PROPOSER’S QUALIFICATIONS 27 TECHNICAL QUALIFICATIONS 27 EXCEPTIONS TO THE TERMS AND CONDITIONS 27 FINANCIAL RESOURCES 27 COSTS 27 AWARD 28 March 13, 2012 iii City of Hermosa Beach LIST OF ATTACHMENTS Attachment 1: Proposal Outline Attachment 2: Existing Service Data Attachment 3: Rate Proposal Forms Attachment 4: Supporting Costs and Operating Data Worksheets Attachment 5: Anti-Collusion Affidavit Attachment 6: Draft Integrated Solid Waste Management Services Agreement March 13, 2012 1 City of Hermosa Beach SECTION I - INTRODUCTION OVERVIEW OF THE REQUEST FOR PROPOSAL The City of Hermosa Beach (“City”) is requesting proposals from qualified solid waste companies to provide solid waste collection, transportation, recycling, and disposal services. Consolidated Disposal Services (“CDS”) currently provides the City with exclusive residential, commercial and industrial collection services, including temporary services, with the exception of construction and demolition waste. TERM OF NEW AGREEMENT The initial term of this agreement is seven years. The City may extend the agreement for up to 24-months at its sole option. Services under the new agreement will begin January 1, 2013. See Sections 2.4 and 2.5 of the draft agreement. SUMMARY OF REQUESTED SERVICES A description of the service area is included in Section II of this RFP. Existing service data provided by CDS and the City is included in Attachment 2. The services for which the City is seeking proposals are summarized in Table 1 below and are briefly described in Section III of this RFP. A more comprehensive description of the scope of services is found in the draft franchise agreement in Attachment 6. Options 1 and 2 apply only to services provided to individually-serviced residential customers; bin, roll-off box and City services are the same under both options. Proposers may propose on Option 1, Option 2 or both residential service options, and must propose on all other services. Table 1: Requested Services SERVICE TYPE SERVICE DESCRIPTION Individually- Serviced Residential Customer Services Option 1: Cart System  Cart Refuse Collection  Cart Recyclables Collection  Can/Bag Refuse and Can Recycling Collection where Carts are not Feasible  Cart Green Waste Collection at Customer Option for a Fee Option 2: Single Stream  Can/Bag Collection of Mixed Refuse and Recyclables  Green Waste Collection at Customer Option at no additional Cost March 13, 2012 2 City of Hermosa Beach Table 1: Requested Services (continued) CUSTOMER TYPE SERVICE DESCRIPTION Commercial/Multi- Family Services  Refuse Bin, Commercial Cart and Roll-Off Box Collection  Recyclables Bin and Cart Collection  Temporary Services  Non-Exclusive Construction and Demolition Debris Collection City Services – provided at no additional charge  Refuse, Recyclables and Green Waste Collection from City Facilities  Refuse Collection and Recycling for City-Sponsored Events  Refuse and Recycling Collection from Schools  Abandoned Item Collection  Public Education and Outreach – Including focused outreach to schools, businesses and multi-family customers Special Services  Bulky Item Collection  Holiday Tree Collection  Annual Document Shred Day  Door-to-Door HHW Collection (City’s Option) Optional Services  Residential and/or Restaurant Food Waste Program - if proposer is able to offer Section V of this RFP describes the required contents of the proposal. Failure to complete and submit all of the forms and the other information required in Section V may be grounds to disqualify a proposal. The proposal should be organized according to the outline shown in Attachment 1. Please note that the City’s procurement of Integrated Solid Waste Management Services is not subject to State or local public bidding laws, and the City does not intend to cause the current RFP process to become subject to such public bidding laws or regulations. PROPOSAL CLARIFICATIONS AND UPDATES After reviewing the RFP package, proposers may find that they require clarification of some requirements. Proposers may submit oral or written questions. Written responses to such questions, addenda and clarifications, if any, will be provided via e-mail to all potential proposers that leave their contact information when they request the RFP from the City. Proposers should leave the primary contact name, company name, address, e-mail address, and phone number. Only written responses will govern. Written questions may not be accepted after the date shown in the schedule in Table 2 at the end of this section, as this would leave insufficient time for the City to provide an adequate response to all potential proposers. However, if proposers have simple questions regarding how to complete submittal forms or otherwise complete the proposal requirements, proposers may continue to March 13, 2012 3 City of Hermosa Beach request assistance via telephone until the proposal due date. See “Communications During RFP Process” below for instruction on where to submit timely questions. PROCESS INTEGRITY GUIDELINES AND COMMUNICATIONS DURING RFP PROCESS All communications regarding this RFP shall be made exclusively through Pamela Townsend of the City of Hermosa Beach, who can be reached at (310) 318-0242 and by e-mail at ptownsend@hermosabch.org, or Laith Ezzet of HF&H Consultants, the City’s consultant, by mail at HF&H, 3990 Westerly Place, Suite 195, Newport Beach, California, 92660, by telephone at (949) 251-8902, by fax at (949) 251-9741 and by e- mail at lezzet@hfh-consultants.com. Proposers and their representatives are prohibited from contacting other City personnel or City Council members regarding matters related to this RFP and the award of this contract. Proposers and their representatives that contact other City personnel or City Council members after the City releases the RFP and throughout the evaluation period regarding this RFP process and contract award may have their proposals disqualified from consideration by review and action of the City Council. The “RFP evaluation period” shall terminate when the staff report to City Council regarding the proposal evaluation is publically released. PROPOSAL ADMINISTRATION The City of Hermosa Beach shall have the right to perform, and each proposer must agree to cooperate with, an investigation and review of each proposer's ability to perform the work required. Such cooperation shall apply not only to the verification of the proposer's capability and experience in the provision of services, but also to the provision of any other component of work that may be required under this procurement. In order to objectively evaluate all proposals, the City has attempted to describe the desired services and the terms and conditions in the draft franchise agreement in a manner that will allow a reasonable level of comparability among the proposals. Therefore, the City discourages, and may disqualify, proposals that substantially deviate from the RFP. Proposals that do not include the completed forms required herein and information required in Section V may be disqualified. Provided that the proposer has submitted a proposal that meets all of the minimum requirements of this RFP, the proposer may also offer additional enhancements that exceed the RFP requirements. The City reserves the right to reject all proposals, disqualify nonconforming or incomplete proposals at its sole discretion, waive deviations from the RFP, and determine whether proposers are qualified. The City reserves the right to issue addenda to the RFP, to modify the RFP, to modify the franchise agreement, or to withdraw the RFP. The City may request clarification or additional information from any of the proposers at any point in the RFP process. Proposals must comply fully with the requirements detailed in this RFP. Required supporting documentation must be included as attachments and be appropriately identified. March 13, 2012 4 City of Hermosa Beach The existing service information presented in Section II and Attachment 2 of this RFP is for information only and the City makes no representations as to its accuracy. All proposers should take whatever steps they believe are necessary to reasonably establish the actual existing service information when preparing their proposals. SUBMISSION OF PROPOSALS The draft franchise agreement containing the terms and conditions under which service is anticipated to be provided (see Attachment 6) is an integral part of this RFP. This draft franchise agreement includes information related to service standards, rate setting, billing, reporting, and other activities related to the performance of these services. Submission of a proposal shall constitute acknowledgment and acceptance of all the terms and conditions contained in this RFP, and in the draft franchise agreement, unless exception to particular terms and conditions are expressed in writing in the proposal. The successful proposer will be expected to enter into a franchise agreement with the City; only those exceptions noted in its proposal will be considered for modification. The City is not obligated to agree to these exceptions but reserves the right to negotiate modification of such noted exceptions to the draft franchise agreement. Each and every term and condition of the proposal shall be irrevocable by the proposer until the City enters into a franchise agreement to perform the scope of services for the proposed rates according to those terms and conditions. Within fifteen (15) business days of the selection of a proposal by the City Council, the selected proposer is expected to execute the franchise agreement, and furnish the required performance bond and letter of credit. The form of the financial instruments is described in Sections 9.6 and 9.7 of the draft franchise agreement. Within thirty (30) days following execution of the franchise agreement, and in any event prior to the performance of any services thereunder, the proposer is expected to provide evidence of all required insurance. The terms of this RFP and the proposals are firm for a period of two hundred and seventy (270) days. Once submitted, responses to this RFP cannot be altered without the City's express written consent. The City reserves the right to reject any or all proposals, and may elect to make a decision without further discussion or negotiation. This RFP is not to be construed as a contract of any kind; the City may withdraw or modify this RFP at any time. The City is not liable for any costs incurred by any potential proposer in the preparation of a response to this RFP. Proposers must submit four (4) bound copies, one (1) unbound photocopy-ready copy, and an electronic copy of the complete proposal in a sealed package. The package should be clearly labeled: ATTENTION: CITY CLERK PROPOSAL FOR INTEGRATED WASTE MANAGEMENT SERVICES NAME OF PROPOSER PROPOSER’S ADDRESS PROPOSER’S CONTACT PERSON PROPOSER’S TELEPHONE NUMBER PROPOSER’S FAX NUMBER PROPOSER’S EMAIL ADDRESS March 13, 2012 5 City of Hermosa Beach The proposal may be mailed, couriered, or hand delivered to the City of Hermosa Beach, 1315 Valley Drive, Hermosa Beach, California 90254. All proposals must be received by the City Clerk of Hermosa Beach by the date and time shown in the schedule in Table 2 at the end of this section, City of Hermosa Beach time. Proposals received after this time and date may be returned unopened. Postmarks will not be accepted as proof of receipt. PROPOSAL REPRODUCTION Black-and-white copies of the proposals may be made by the City for review by City Council or other parties, either from the unbound copy or from the electronic file submitted. Proposals should be prepared in a manner that reproduces clearly and legibly in black and white. Use of color and dark shading should therefore be minimal. All proposal pages should be 8.5” by 11” to facilitate reproduction. Any financial information that the proposer requests to remain confidential should not be included in the electronic file, but only in a sealed envelope under separate cover. SCHEDULE The procurement schedule is shown in Table 2. These dates are subject to change by the City. Table 2: Procurement Schedule DATE ACTIVITY March 14, 2012 Request for Proposals available March 27, 2012 Pre-proposal conference at 11:00 a.m. at City Hall, 1315 Valley Drive, Hermosa Beach April 3, 2012 Last day to submit written questions May 7, 2012 Proposals due to the City Clerk by 4:00 p.m. August 2012 Award by City Council January 1, 2013 Start of service March 13, 2012 6 City of Hermosa Beach SECTION II – CURRENT SERVICE DATA DESCRIPTION OF SERVICE AREA The City of Hermosa Beach is a coastal city in the South Bay area of Los Angeles County, located between the cities of Manhattan Beach and Redondo Beach. According to the latest census data as published on the California Department of Finance website, as of April 1, 2010, the City has a total of 9,550 housing units (both single and multi- family) and a population of 19,506 people. The following is an estimated residential parcel count, based upon the number of units on each parcel: 1 dwelling unit: 4,875 parcels 2 dwelling units: 928 parcels 3 dwelling units: 158 parcels 4 dwelling units: 158 parcels 5 or more dwelling units: 173 parcels 1 mobile home park with 60 units 1 small RV park Actual estimates of customer counts are included in Attachment 2. CURRENT SERVICE DATA The City has obtained from the current hauler, CDS, or provided from its own records, the data provided in Attachment 2. As stated in Section I, the City neither warrants nor accepts responsibility for the accuracy of the information. It is the responsibility of each proposer to undertake, at its sole cost, any verification of this information necessary for it to submit a response to this RFP. CURRENT RATES The current rates effective for calendar year 2011 are in Attachments 2-A through 2-F, along with the estimated customer counts by rate category. Rates have not increased since January 1, 2010. RATE REVENUES Total rate revenue received for calendar year 2010 is included as Attachment 2-J. March 13, 2012 7 City of Hermosa Beach AB 939 PLANS The City is committed to fully complying with AB 939 and future increases in diversion rate goals. The City is part of the Los Angeles Regional Agency, or LARA. Therefore, the City does not submit an annual report to CalRecycle with the City’s diversion rate. LARA’s estimated diversion rate is approximately 70% for 2010. The current hauler reported a diversion rate for 2010 of 26% of the material it collects. March 13, 2012 8 City of Hermosa Beach SECTION III – PROPOSED SERVICE REQUIREMENTS The City is requesting proposals for the services described below. If these services represent a significant change to current services, such changes are noted. A more comprehensive description of these services is found in the draft franchise agreement, included as Attachment 6 of this RFP. References to sections and appendices refer to the draft franchise agreement; references to attachments refer to attachments to this RFP. RESIDENTIAL SERVICE Current Service Arrangements - Currently, individually serviced residences provide their own barrels for refuse collection, the hauler provides recycling containers, and there is no green waste collection. There is currently a mix of recycling carts, barrels and crates in distribution. Collection is manual and once per week, with both waste streams collected on the same day. The existing carts are collected using a flipper attached to a collection bin carried on the front of the collection vehicle. Service is currently billed at a flat rate for unlimited collection. Challenging Collection Areas - Areas of the City, particularly near the coast, require collection from very narrow streets and alleys. There are areas where full-size collection vehicles will not fit, and even smaller vehicles will have difficulty making turns. Some streets may be too space constrained to accommodate the use of standard automated collection arms. OPTION 1: CART SYSTEM Option 1 includes a cart based system with volume-based rates. This collection system addresses the City’s desire to incentivize recycling and decrease overall disposal. Refuse Cart Collection – Hauler will distribute 96, 64, and 32-gallon refuse carts, as requested by customer, who will be billed based upon the size and number of refuse carts selected. If the customer does not select a refuse cart size, one 64-gallon cart will be provided to areas of the City that can accommodate that size; one 32-gallon cart shall be distributed to non-responsive customers in areas determined to have limited storage space. The City believes that the area in which the smaller default size may be applicable would be north of 27th Street; this area includes approximately 900 to 1,000 homes. City and hauler will work together prior to cart distribution to further refine neighborhoods that may benefit from an alternative default cart size. See Sections 4.1.2 and 4.4.1.1. Recycling Cart Collection – Hauler will distribute 96, 64, and 32-gallon recycling carts, as requested by customer. Recyclables collection shall be once per week on the same day as refuse collection. There shall be no additional charge for the recycling cart, and customers that regularly fill their recycling carts may request additional carts at no additional charge. If customer does not select a recycling cart size, the default shall be the same size and number of carts as the default refuse cart(s) for the particular area. See Sections 4.2.1 and 4.4.1.1. March 13, 2012 9 City of Hermosa Beach Can Service – Some customers will be unable to accommodate carts. These customers will be permitted to retain refuse collection service from customer-provided containers. The contractor shall provide cans for recyclables collection. Collection quantities will not be limited and customers shall be charged a flat rate. Walk-Out Service – Residents that have difficulty moving their carts or cans to the point of collection due to age or physical disability shall be offered walk-out service, whereby contractor enters the backyard or other container storage location, moves the carts or cans to the curb for collection, and returns the carts or cans after collection at no additional charge. Other residents may request this service for an additional charge. See Section 4.1.4. Backyard Compost Program – Contractor shall provide composting/worm bins to residential customers upon request; cost to be covered by a customer co-pay and City subsidy. Contractor shall offer at least two composting classes per year and provide a composting brochure at no additional cost. See Section 4.3.4. OPTION 2: SINGLE STREAM This option includes unlimited collection of all solid waste for sorting at a mixed waste processing facility to recover recyclables. This method of collection would provide for the fewest collection vehicle passes on each street. Containers – Containers for the collection of refuse and recyclables in a single wastestream shall be provided by customers. Collection – Once per week, refuse and recyclables generated by individually-serviced residents will be co-collected in the same collection vehicle in one pass and sent for processing. All customers shall continue to be charged a flat rate for collection. Contractor will be required to divert at least a minimum percentage of this waste from landfilling. RESIDENTIAL GREEN WASTE COLLECTION – OPT-IN PROGRAM Green Waste service would be a new program for the City. A few areas of the City generate sufficient quantities of green waste to warrant separate collection, while many homes in other areas of the City generate very little green waste. Proposers are provided with the opportunity to provide input and propose parameters for this program. Under both Options 1 and 2, contractor shall provide a residential green waste program whereby residents may opt-in to participate. Under Option 1, participants may pay a monthly fee per cart for green waste collection as part of the volume-based rate structure. Upon request, hauler will distribute 96, 64, and 32-gallon green waste carts to Customers. Customers that do not specifically request a green waste cart or carts shall not be provided with one. Customers shall be charged a monthly fee for each green waste cart distributed. See Sections 4.3.1 and 4.4.1.1. Under Option 2, customers may participate by requesting green waste carts at no additional charge as part of the unlimited service rate structure. March 13, 2012 10 City of Hermosa Beach RESIDENTIAL BIN AND COMMERCIAL COLLECTION SERVICES Refuse Bin Service - Contractor shall provide bin service to residential customers not receiving cart/can service, and commercial customers that can accommodate a bin. Contractor shall provide 1, 1.5, 2, 3, 4, 6 and 8 cubic yard bins upon request. See Section 4.1.5. Commercial Cart Service – As an alternative to bin service, Contractor shall provide 96, 64 and 32-gallon refuse carts to service commercial customers that cannot accommodate bins. See Section 4.1.6. Roll-Off Box Collection – Upon customer request, Contractor shall provide and service 20, 30 and 40 cubic yard roll-off boxes, and shall service compactor roll-off boxes. See Section 4.1.12. Temporary Bin and Roll-Off Box Service, Construction and Demolition Debris - Contractor shall be the exclusive provider of temporary services, with the exception of construction and demolition debris collection, which is not exclusive but must be collected upon request. Contractor must process all construction and demolition debris roll-off loads and divert 70% of the construction and demolition debris collected. See Section 4.2.6. Bin Cleaning - The franchisee will be required to clean or replace bins upon customer request once per year at no additional charge. Contractor may charge an approved fee for additional cleanings. See Section 4.4.4. Locking Bins – Contractor shall provide locking bin service to customers that request it for an additional monthly fee. See Section 4.1.11. Scout Service – Contractor may continue to charge an additional fee for providing operationally required, or customer-requested, use of a scout vehicle. Application of this fee to customers is subject to City approval. See Section 4.1.9. Push-out Service – Contractor may charge an additional fee for each 50 feet that the bin must be moved to the point of collection, over 10 feet. Application of this fee to customers is subject to City approval. See Section 4.1.10. If a scout fee is charged, then push-out fees do not apply. Mandatory Commercial Recycling – Source separated collection of commingled recyclables is currently offered to multi-family bin and commercial customers at approximately 75% of comparable refuse rates. Under the new agreement, contractor will be required to provide commingled recyclables collection service using bins or carts to all customers requesting it at 50%of comparable refuse rates. Contractor will contact all bin and permanent roll-off customers within the first 12 months of the service under the new agreement to attempt to establish a recycling program. Proposers may propose additional diversion programs as well. Contractor shall further assist the City in meeting mandatory commercial recycling requirements by providing relevant reports, including, but not limited to, reports of commercial customers generating more than four cubic yards of solid waste per month and multi-family bin customers without recycling programs. See Section 4.2.2. March 13, 2012 11 City of Hermosa Beach Downtown Collection Challenges – Downtown solid waste conditions are challenging, resulting in odor and potential water quality issues. Businesses’ container storage in this area can be minimal. The City had two downtown bin enclosures. On July 26, 2011, City Council agreed to close one enclosure and focus on controlling the use of the other enclosure, located in Lot A, at the corner of Beach Drive and 11th Street. This enclosure needs constant cleaning. Overflowing containers are also an issue. Porter Service – On August 1, 2011, the contractor began porter service, whereby a contractor employee collects waste from downtown area business and transport the waste to the Lot A bin enclosure. Contractor is responsible for coordinating collection with each business, and has been steam cleaning the bin enclosure three times per week (Monday, Wednesday and Friday). Contractor collects from the businesses between 4:00 a.m. to 12:00 p.m. and between 4:00 p.m. and 12:00 a.m. each day. Some customers require collection multiple times per day, while others may require collection once or twice per week. Contractor controls access to the bin enclosure. The initial cost for this service was estimated to be $6,800 per month prior to implementation, assuming eight hours per day at $28.00 per hour, with this cost divided among the serviced customers. (Actual service hours per day are higher, as described above.) Thirty-seven customers are impacted. See Attachment 2-O for the staff report addressing the implementation of this service and Attachment 2-P for an updated customer list. Customers in the Downtown area receiving porter service are charged for both bin collection from the shared Lot A enclosure and porter service. These costs are allocated among the participating customers by the contractor, who is responsible for billing customers for these services. This practice will continue under the new agreement. This service will be continued under the new agreement. See draft agreement section 4.1.14, RFP page 25 and Attachment 3-C, Row 1. Downtown Enclosure Service Levels: Bins vs. Roll-Off Boxes – Currently, solid waste collection services from the shared downtown bin enclosure consists of six four-cubic-yard refuse bins collected seven days per week, including holidays, and four six-cubic-yard recycling bins, placed alongside the enclosure, collected three times per week. The enclosure also includes a container in which local businesses place used cooking oil for collection by a third-party. The City has investigated the possibility of developing a new collection enclosure and transition from bin to roll-off compactors for the collection of refuse and recyclables. Additional Service Possibilities - Downtown can be overwhelmed with additional solid waste on holiday weekends, requiring the hauler to provide extra pickups on days that collection would otherwise be delayed. The City may transition from bin collection to using roll-off compactors at Lot A in the future. The City is seeking additional ideas from proposers to address cleanliness issues in the Downtown areas. Proposers are asked to propose solutions to these issues, describing specific steps proposer will take, and including any associated costs, if any. See Section 4.1.13. March 13, 2012 12 City of Hermosa Beach SPECIAL SERVICES Holiday Tree Collection and Recycling - Contractor will collect and divert holiday trees placed curbside from all residential customers for three weeks following December 25. Contractor shall provide up to three roll-off boxes during the three weeks following December 25. City will designate where the boxes will be placed. Currently, the boxes are placed at the City yard for use by City crews or for City customers that drop off trees. See Section 4.3.2. On-Call Bulky Item Pickup - The Contractor will be required to provide on-call bulky item pickup service to all residential customers (both cart and bin) at no additional charge, up to three cubic yards per pickup, and to commercial customers for a fee. See Section 4.1.15. Optional Food Waste Diversion Program – City may require franchisee to implement a food waste diversion program in the future, at which time the contractor will be entitled to a rate adjustment for the additional costs. See Section 4.1.19. Proposers may alternatively propose an optional program at this time. This would be a new service and the City may or may not implement this program. Optional Door-to-Door Household Hazardous Waste Collection Services - The City is seeking quotes for providing door-to-door household hazardous waste collection services. This would be a new service and the City may or may not implement this program. Proposers are asked in Section V of this RFP to describe the program, and to propose a cost on Attachment 3-G. CITY AND OTHER SERVICES City Facilities’ Collection - Contractor will collect and divert or dispose of all refuse, recyclable material, and green waste generated at facilities owned and/or operated by the City, including street sweepings, at no charge to the City. The current list of facilities and service levels are included in Attachment 2-K. See Section 4.5.1. City Litter Container Collection - Contractor shall collect from all public litter and recycling containers in the City. See Section 4.5.2 of the draft agreement for collection frequencies. See container map in Exhibit 4 of Attachment 6 for count and location of existing containers, identified by responsible collection contractor (Consolidated, Athens or True Green). As of the start of service under this agreement, the contractor will assume collection responsibility for all containers currently collected by the solid waste contractor. The containers identified as collected by Athens or True Green will be collected by the contractor beginning July 1, 2013, as agreements with these third-party contractors expire June 30, 2013. The City may place recycling containers next to existing litter containers that do not already have accompanying recycling containers. These containers shall also be collected by contractor at no additional charge. City Facilities In-Office Recycling Containers – Contractor shall be responsible for providing to City offices desk-side recycling containers for individuals and in-office recycling containers for common areas, such as copy and conference rooms. A recent survey of City facilities estimated that 44 desk-side containers, nine common-area containers and ten containers for March 13, 2012 13 City of Hermosa Beach community center classrooms would be appropriate, but contractor will be expected to provide as many containers as appropriate to facilitate recycling demand. School District Collection – Contractor shall collect all refuse, recycling and green waste from K-12 public schools and school administration offices at no additional charge. Currently there are two elementary schools in the City, both of which receive free service. There are currently no other public schools in the City. The estimated annual service cost saved under the existing agreement is approximately $18,500 per year. Current services are included in Attachment 2- K, along with other City facilities’ service levels. These service levels may change over time. See Section 4.5.3. City-Sponsored Events - Contractor will be required to provide litter boxes and liners for refuse and recyclables collection at City–sponsored events, and other select in-City events. City crews transport solid waste from event litter boxes to existing bins at the City yard or parks for disposal or processing by contractor, and will continue to do so under the new agreement. The City may call for additional bin or roll-off pickups at City facilities at no additional charge for collection of event waste. See Section 4.5.4. The list of events serviced and litter boxes currently provided are included in Attachment 2-L. Attachment 2-L also describes the services to be provided under the new agreement. Recycling containers are not currently provided, but will be required under the new agreement. Provided the event is not City-sponsored or listed in Section 4.5.4 of the draft agreement, contractor shall be permitted to charge sponsors for litter boxes and liners in accordance with the approved rate schedule. Proposers are asked to propose a maximum rate for such boxes and liners. Document “Shred Day” – Contractor shall conduct an annual “shred day” for all City residents and businesses to deliver paper for shredding. This is a new event. Documents must be guaranteed to be confidentially and completely destroyed, and shredded paper must be diverted from landfilling. See Section 4.1.20. Abandoned Item Collection – City crews collect and deliver abandoned items to the City yard. Contractor will divert or dispose of these items at no additional charge. See Section 4.5.6. March 13, 2012 14 City of Hermosa Beach SECTION IV –KEY CONTRACT TERMS A comprehensive description of contract terms is found in the draft franchise agreement. Below are some key terms to bring to your attention. Section references to the draft franchise agreement are included in the following summary. MANDATORY COLLECTION The City Municipal Code currently provides for mandatory collection. The City reserves the right under Section 6.7.9 to establish exemptions. HOLIDAY COLLECTION If the regularly scheduled collection day falls on New Year's Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving Day, or Christmas Day, collection days for the remainder of that week shall all be postponed one collection day, with the exception of the Downtown area. Areas which receive heavier traffic on holiday weekends shall continue to receive service and shall receive extra pickups upon request. See Sections 4.1.13 and 4.6.1.1. EDUCATION AND PUBLIC AWARENESS The City recognizes that effective public education is the key to implementing effective programs. In addition to providing general outreach and education to customers, contractor is required to provide focused outreach to schools, businesses and multi-family customers. Refer to Section 5.2 of the draft franchise agreement for specific requirements relating to minimum public outreach requirements. FAITHFUL PERFORMANCE BOND AND LETTER OF CREDIT The franchisee will be required to provide a performance bond and/or letter of credit, for a total of $500,000 in surety. See Sections 9.6 and 9.7. REPORTING AND AUDITING The draft franchise agreement contains detailed auditing procedures, and specific reporting and record keeping requirements. See Article 8 of the draft franchise agreement for detailed information on the required records, reports, and review requirements. Note that the franchisee is required to reimburse the City for biennial audits, up to $80,000 for the first audit after FY 2013 and $50,000 for each subsequent biennial audit (subject to CPI adjustments). See Section 8.2.6. March 13, 2012 15 City of Hermosa Beach MINIMUM DIVERSION RATES The City’s contractor reported a 26% diversion rate for the waste it collected in 2010.Proposers shall propose a minimum diversion rate for hauler-collected solid waste to which proposer would be contractually bound. This diversion rate must be supported by diversion programs and tonnage estimates in Attachment 4-G. Third-party diversion shall not be included in this calculation. Proposed diversion rate and supporting programs will be considered in the proposal evaluation. See Section 4.2.5. COLLECTION VEHICLE REQUIREMENTS All of contractor’s route collection vehicles shall use liquefied natural gas (“LNG”) or compressed natural gas (“CNG”) within six months of the start of service, and shall be no older than fourteen years at any time during the agreement term. Other vehicles such as roll- off, bulky item, and supervisor trucks are not required to meet these age and fuel requirements under the franchise agreement (unless and until otherwise required by law), but where possible, newer, natural gas vehicles are encouraged and should be noted on the proposed vehicle list. Certain areas of the City cannot accommodate full-size collection vehicles, specifically many areas north of 27th street. Proposers will need to identify the size and type of vehicles to be used in this area (see #9 in Section V of RFP). The successful proposer shall propose a collection vehicle no larger than the collection vehicle currently in use in this area, which is an Isuzu N chassis with a 3 ton capacity. Limitations on the size of the vehicle to be used in these areas shall be added to the agreement based upon the successful proposal. See Section 4.6.2. DEDICATED ROUTES Solid waste collected from the City shall not be commingled with solid waste from other jurisdictions. See Section 4.10. FEES/FUNDING Contracting Cost Reimbursement - Upon execution of the franchise agreement, the franchisee will be required to remit to the City a one-time contracting cost reimbursement of $150,000 to reimburse the City for its costs of developing and awarding the franchise. See Section 3.1. Collector Fee – Contractor shall continue to shall pay a collector fee equal to 10% of gross revenue received under this agreement. See Section 3.2. Administrative Fee - Contractor shall pay an administrative fee of $50,000 per year, adjusted annually by the change in the CPI excluding food and energy. This fee is to cover the City’s costs of administering the contract; this fee was not previously collected. See Section 3.3. AB 939 Fee – Contractor shall pay $0.25 per home per month for residential cart customers, and $0.25 per cubic yard of refuse collected from bins, commercial carts and roll-off boxes. See Section 3.4. March 13, 2012 16 City of Hermosa Beach Collector, Administrative and AB 939 fees shall be paid to the City monthly. BILLING Contractor shall continue to bill residential customers quarterly and commercial customers monthly, and contractor is responsible for bad debt. The City intends to continue its current practice of placing delinquencies on the County property tax roll for both residential and commercial customers. See Section 6.7. RATE ADJUSTMENT METHOD Initial rates will be set based on the rates proposed in Attachment 3. The rates will thereafter be annually adjusted using a weighted index according to the computations described in Article 6 of the draft franchise agreement. Proposers shall propose disposal cost component increases. Initial weightings will be based upon data provided in Attachment 4-F of the proposal. March 13, 2012 17 City of Hermosa Beach SECTION V - PROPOSAL SUBMISSION REQUIREMENTS The following information must be organized according to the outline in Attachment 1. Requested information should be identified by letter or number in the outline. All items must be addressed. All pages must be sequentially numbered. 1. GENERAL REQUIREMENTS At the beginning of the proposal, include all of the following: 1.a Title page 1.b Transmittal letter identifying the name, mailing address, e-mail address, telephone number and facsimile number of the proposal contact person 1.c Table of contents 1.d An executed anti-collusion affidavit (Attachment 5) 1.e Signature pages of all RFP addenda issued by City 2. RATE PROPOSAL FORMS (ATTACHMENT 3) The service rates proposed for each type of service should be included in the rate schedules in Attachment 3. In addition to the rates, proposers should calculate the estimated total annual rate revenue from each type of service. The total annual rate revenue from the proposed rates should be summarized in Attachment 3-A (“Summary of Rate Proposal”) and reconciled to the proposer’s estimated revenue requirement (explained below) in Attachment 4. Calculations from Attachments 3-C through 3-H should be summarized on Attachment 3-A. Attachment 3-I must be completed as well. The City reserves the right to rebalance rates prior to contract execution if the change is revenue neutral to the franchisee. Exhibit 2 of the draft agreement in Attachment 6 contains rates for other services that are set by the franchise agreement. A proposal may be deemed nonconforming or incomplete unless Attachment 3 is complete and submitted in its entirety. A Microsoft Excel file containing Attachment 3 will be available after the pre-proposal conference and can be e-mailed to proposers requesting it by contacting Lisa Keating of HF&H at (949) 251-4817 or by e-mail at lkeating@hfh-consultants.com. 3. SUPPORTING COSTS AND OPERATING DATA (ATTACHMENT 4) The supporting cost and operating data worksheet in Attachment 4-A provides a format for proposers to estimate their annual revenue requirement for providing all of the proposed services. Proposers must provide the operational statistics on which their estimated costs are based in Attachments 4-C and 4-D. The operating statistics will be used to evaluate the reasonableness of the proposer’s estimated revenue requirement. The proposer’s estimated revenue requirement will be used to evaluate the reasonableness of the proposed rates. Attachment 4-F must be completed and may be used to determine weightings of cost March 13, 2012 18 City of Hermosa Beach components for rate adjustments. Attachment 4-G demonstrates how the proposer plans to reach required diversion levels. Note that diversion programs put forth in Attachment 4-G, and elsewhere in proposer’s proposal, will be incorporated into the franchise agreement. A proposal may be deemed nonconforming or incomplete unless Attachment 4 is complete and submitted in its entirety. A Microsoft Excel file containing Attachment 4 will be available after the pre-proposal conference, and can be e-mailed to proposers requesting it by contacting Lisa Keating of HF&H at (949) 251-4817 or by e-mail at lkeating@hfh- consultants.com. 4. EXCEPTIONS TO TERMS OF THE FRANCHISE AGREEMENT Include a list of any exceptions to the RFP and draft franchise agreement. Please reference the agreement section, describe the nature of the proposed exception, and identify proposed substitute language. In order to demonstrate that, but for the noted exceptions, the proposer agrees to all terms and conditions of the agreement as written, sign and include in this proposal the signature page of the draft agreement, along with the noted exceptions. The proposal is not considered complete without this signed page. 5. PROPOSER OVERVIEW 5.a Business Structure Provide the following information regarding the proposing entity and entity that would provide a corporate guarantee, if applicable. i Legal name of proposing entity that would sign franchise agreement and whether it is an individual, a partnership, a corporation, or a joint venture. ii Entity that would submit financial statements and whether it is an individual, a partnership, a corporation, or a joint venture. If other than proposing entity, indicate relationship and willingness to sign corporate guarantee (see Exhibit 5 in Attachment 6). iii Number of years in which proposing entity has been organized and doing business under this legal structure (if other than an individual). iv Names of owners/stockholders with more than 10% of the company’s equity. v Names of all officers. vi Corporate headquarters. vii Local headquarters (if different). 5.b Description of Proposer’s Experience Identify the names of all the public agencies in Los Angeles County, where the proposer currently provides service, including what type of service. Additionally, the proposer should submit a brief description of the proposer’s experience in California providing solid waste services under exclusive agreements to city or county customers that qualifies it to perform the services being procured through this RFP; provide a March 13, 2012 19 City of Hermosa Beach table, including each jurisdiction’s services (residential, commercial, etc). Include preferably three or more detailed references for current municipal customers with services most similar to those requested in this RFP. References shall include: i The name of the jurisdiction. ii Time period during which proposer provided service to the jurisdiction. iii The type of customers served (e.g. residential or commercial). iv The services performed (e.g. refuse collection, recyclable materials collection or green waste collection). v Residential collection methods (e.g. manual or automated). vi Whether the services were exclusively or non-exclusively provided in the jurisdiction by the proposer. vii The name, address and telephone number of the jurisdiction representative responsible for administering the contract. Additionally, please provide at least one municipal reference for service transitions from another hauling company, including a brief description of the old and new services, and service transition dates, as well as the information listed in i to vii above. 5.c Information Regarding Past and Pending Litigation Describe all civil legal actions with government agencies, and all criminal legal actions now pending or that have occurred in the past ten years against: i The key personnel described in Section 5.d. ii The owners and officers of the company. ii The entity submitting the proposal. iii Any parent or affiliated company for actions filed in the State of California (for affiliates, proposer may limit disclosures of non-criminal matters to those in the Los Angeles County area). Additionally, proposers should include any additional current or recent litigation or other regulatory issues that may impact the proposer’s ability to provide the services described in its proposal and may otherwise be presented to, or questioned by, the City. Proposers may include a response to any negative allegations at this time. 5.d Key Personnel Identify and describe the qualifications and experience the City can expect of the key personnel your company would assign to the City. Provide a brief biographical description of the proposed management team members that will fill these described jobs, specifically including the field supervisor required per Section 5.1.4 of agreement. Indicate the office locations for each key person assigned to the franchise. March 13, 2012 20 City of Hermosa Beach Indicate the percentage of time that the field supervisor will have dedicated exclusively to the City of Hermosa Beach, identify all other cities field supervisor will simultaneously be responsible for, and indicate the number of years of experience the field supervisor has in that position. 5.e Financial Information Initially, proposers must provide the following financial information in the proposal for the proposing entity or, if a guarantee is offered, for the guarantor: i The type of financial statements produced (e.g. audited, reviewed or compiled) and the corporate entity that they represent (proposer or corporate guarantor). ii The most recently completed fiscal year for which financial statements are available. iii Annual revenue from the most recently completed financial statements for the proposer or, if applicable, the corporate guarantor. iv Current Assets to Current Liabilities ratio (current assets/current liabilities) from the most recently completed financial statements for the entity that will provide the guaranty. v Total Liabilities to Total Assets ratio (total liabilities/total assets) from the most recently completed financial statements for the entity that will provide the guaranty. If selected for further consideration, proposers must be prepared to submit financial statements within five (5) business days of the request for the most recently completed fiscal year for the entity that will guarantee the performance of the franchise agreement. All such statements would need to be prepared and presented in accordance with Generally Accepted Accounting Principles applied on a consistent basis, and must include a statement by the chief financial officer of the proposer’s company that there has been no material adverse change in conditions or operations, as reflected in the submitted balance sheets, income statements and cash flow statements, since the date on which they were prepared. If requested to submit financial statements, the proposer may submit a single copy of its financial statements stamped “confidential” with a written request that it be returned to the proposer after the proposal process is complete. The City will attempt to maintain the confidentiality of such a request, although confidentiality cannot be guaranteed. Prior to award, the selected proposer will be required to submit “reviewed” or “audited” financial statements that demonstrate reasonable financial resources and stability to the satisfaction of the City. If awarded the contract, the financial statements shall remain with either the City or its consultant. 5.f Insurance Proposer must submit evidence that the proposer either has, or is able to obtain, the insurance coverage required in Section 9.4 of the draft franchise agreement in Attachment 6. Additionally, proposers should indicate whether they carry pollution and/or environmental liability insurance or commercial crime insurance. Please describe the insurance carried, including provider and policy limits. March 13, 2012 21 City of Hermosa Beach 6. FACILITY DESCRIPTIONS REQUIRED IN PROPOSAL 6.a Transfer Facilities For each transfer facility, if any, please identify the following: i The name and address of the facility. ii Statement regarding any relationship between the proposer and the facility owner/operator (if any). iii The price per ton for transfer and disposal of refuse. iv Estimated date for start of operation, if facility is not currently in operation. 6.b Processing Facilities Proposers must identify in their proposals any facilities they plan to use for the: • processing of the commingled recyclables • processing of green waste • processing of mixed waste (required under Option 2, and if otherwise applicable) • transformation of refuse (Waste-To-Energy), if applicable • processing of mixed construction and demolition debris • processing of food waste, if applicable For each facility, please identify the following: i The name and location of the facility. ii A statement regarding any relationship between the proposer and the facility owner/operator (if any). iii The material to be processed (green waste, commingled recyclables, mixed waste, food waste). iv The price per ton. These four items must be included for each facility to be used. 6.c Operating Facilities Proposers must provide information about the operating facilities that they plan to use, including: i Yard address for equipment and personnel staging and arrangements for maintenance of equipment. ii Office address for customer service, public relations, billing, and franchise administration. iii Other operating facilities to be used in providing service under this franchise agreement. March 13, 2012 22 City of Hermosa Beach 6.d Disposal Facilities For each disposal facility, please identify the following: i The name and address of the facility. ii Statement regarding any relationship between the proposer and the facility owner/operator (if any). iii The price per ton. 7. RATE ADJUSTMENT TERMS/DISPOSAL COMPONENT i Propose a rate adjustment index/method for adjusting the disposal component of the rates. Proposers proposing to use third-party facilities where the City can easily verify gate rates paid by the contractor may propose a pass-through cost. Proposers that propose to use their own disposal facility(ies) should propose an index such, as a CPI, or other method for adjusting the disposal component that can be independently verified. ii Indicate whether a cap (maximum limit) on increases to the disposal or other rate components can be offered. iii Indicate any solid waste facility capacity guarantees being offered. iv Provide information on facility ownership or long-term disposal or processing agreements that help support these caps and/or guarantees. 8. IMPLEMENTATION PLAN Proposers should provide an implementation schedule. The proposal must clearly demonstrate that your company has the ability to implement the services in accordance with the City’s transition date, including meeting equipment, personnel, administration, maintenance and public education and outreach requirements. 9. COLLECTION VEHICLE DESCRIPTIONS Please provide a table that includes the following information for each vehicle to be used under this franchise agreement. Proposers shall clearly identify, and include the size of, the smaller vehicles that will be used for collection from narrow streets and alleys. 1. Make 2. Model 3. Model Year 4. Type of fuel 5. Vehicle type (front loader, rear loader, roll-off, etc.) March 13, 2012 23 City of Hermosa Beach 6. Number of vehicles with this description to be used 10. DIVERSION GOAL AND ADDITIONAL DIVERSION PROGRAMS Proposers shall propose a minimum diversion rate for all solid waste to be collected by contractor under the new agreement. Supporting programs and tonnage estimates must be included in Attachment 4-G. See Section 4.2.5. Describe specific diversion plans that may be proposed, in addition to those required by the RFP, in order to reach this proposed diversion goal. Proposers must demonstrate how the diversion rate shall be achieved. If the proposer is willing to commit under the new agreement to diverting any special materials (for example, Styrofoam or carpet), describe specifically how the material will be collected and diverted. If proposer can offer a recycling incentive program such as RecycleBank, proposer should describe the program in detail, including:  Who would participate;  Effort required on participant’s part;  How benefits are earned and redeemed;  What the benefits are;  An example of a typical customer’s benefits (i.e., what would a customer that filled a 96- gallon recycling cart weekly receive?); and,  Cost to the City or ratepayers, if any. 11. OPTIONAL HHW PROGRAM The City is considering the economic feasibility of a residential door-to-door household hazardous waste (HHW) program and has requested a proposed per dwelling unit cost. This program shall be offered to residents receiving either cart or bin refuse service (single and multi-family customers). There are an estimated 9,550 dwelling units in the City. Indicate per dwelling unit cost per month. Describe the items to be collected in your proposed HHW door-to-door collection program. Specifically indicate whether the program will include the collection of Sharps and non-controlled pharmaceuticals. Indicate whether the proposing company shall provide the service, or what subcontractor would be used. In addition to providing a door-to-door program costs, proposers may propose an alternative HHW disposal option, such as drop-off events. Please provide program descriptions and additional costs, if any, associated with the alternative options. March 13, 2012 24 City of Hermosa Beach 12. OPTIONAL FOOD WASTE PROGRAMS Indicate whether proposer can provide a restaurant and/or residential food waste program. Indicate whether there are additional costs for this program and how the program would be structured. Provide estimates as to the number of participants and annual tons to be diverted under each program. Describe collection procedures and facilities to be used. Include start dates and, if a pilot program is proposed, the duration of the program and geographic area to be served. The City reserves the right to require, and negotiate rates for, a residential and/or restaurant food waste program at a future date. See Section 4.1.19. 13. PUBLIC EDUCATION At a minimum, contractor shall be required to provide recycling education and outreach to customers as described in Section 5.2 of the draft agreement. Proposers may propose outreach programs and, if proposed, should describe programs in enough detail to include as contract terms, specifying materials to be developed, meetings to be held, contractor staff time and other resources to be committed, and additional program details. 14. DOWNTOWN AREA COMMERCIAL COLLECTION CHALLENGES Solid waste conditions in the downtown commercial area, including Pier Plaza, are challenging, resulting in odor and potential water quality issues. Container storage can be limited in this area. Downtown bin enclosures need constant cleaning. Overflowing containers and holiday weekend collections need particular focus in the Downtown area. A. Porter Service – Proposers shall provide a monthly cost to provide porter service, in which the contractor provides containers and bags as necessary to all participating downtown businesses, and collects all solid waste from these businesses as often as necessary to prevent overflow at each business. Contractor shall be responsible for allocating this fee among serviced businesses and billing such customers. This cost shall be provided on Attachment 3- C. See Section 4.1.14 for minimum service requirements. B. Additional Downtown Area Assistance - Proposers are asked to propose solutions, if any, that will improve collection services, cleanliness and appearance in regards to Downtown solid waste issues. Proposal should describe plans in detail and provide additional costs, if any. 15. CART DISTRIBUTION Proposer shall include the cart size distribution upon which its proposal is developed in Attachments 4-A and 4-B. Distribution is required for each option proposed upon, including refuse, recycling and green waste carts and can customers. March 13, 2012 25 City of Hermosa Beach 16. OPT-IN GREEN WASTE PROGRAM An opt-in green waste program must be offered to residents under both residential proposal options 1 and 2. Proposers are provided flexibility in designing the green waste programs, such as providing City-wide green waste collection on the same day of the week or other program elements that would enable cost effective collection. At a minimum, proposers should clearly describe containers to be used, any restrictions on program availability, estimated participation and tonnage impacts assumed by proposer. Under Option 1, the program is anticipated to include the provision of green waste carts under a volume-based rate structure (see example program language in Section 4.3.1 of the draft agreement and Attachment 3-B for cart rate proposal). Under Option 2, the program is anticipated to be included at no additional charge. Proposers may propose the type of collection containers. Indicate what, if any, options would be available for multi-family bin and commercial customers requesting green waste collection. 17. ADDITIONAL PROPOSAL REQUIREMENTS A. Performance Bond/Letter of Credit Proposers shall indicate the amount of the required $500,000 surety to be provided through a performance bond and/or through a letter of credit. Proposers may provide this $500,000 in either format, or in any combination of these two instruments. B. Cart Distribution Proposer shall describe carts which it intends to use in the City, pending City approval. Include manufacturer and specific sizes. Color cart photos shall be provided if requested by the City. C. Bin Colors Proposer shall indicate the proposed colors for its refuse and recycling bins. D. Litter Box Rates for Non-City Events Proposers are asked to provide a rate for litter boxes and liners to be provided to non-City sponsored event planners. (Litter boxes are to be provided at no additional charge for City- sponsored and other select events.) See Section 4.5.7. 18. PROPOSAL ENHANCEMENTS Provided that the proposer has submitted a proposal that meets all of the minimum requirements of this RFP, the proposer may also offer additional enhancements that exceed the requirements of this RFP and the franchise agreement, such as recyclable revenue sharing March 13, 2012 26 City of Hermosa Beach or residential recycling incentives. Any such enhancements shall be listed by number under this section in the RFP. March 13, 2012 - 27- City of Hermosa Beach SECTION VI - PROPOSAL EVALUATIONS The proposal will be objectively evaluated based on criteria that may include, but is not limited to, the following factors. PROPOSER’S QUALIFICATIONS  General Experience – Demonstrated experience providing similar services to other jurisdictions (including those with similar service constraints), and experience of key personnel.  Jurisdiction Satisfaction – Satisfaction of proposer references with services received, including but not limited to, implementation, customer services, reporting, and working cooperatively with City staff. Customer service is of utmost importance to the City.  Environmental Protection – Ability to reduce impacts to the environment and human health (e.g., air and water quality protection, litter reduction, etc.). TECHNICAL QUALIFICATIONS  Waste Diversion – Ability to maximize waste diversion.  Implementation Plan – Reasonableness of implementation plan and schedule; ability to meet deadlines (i.e., equipment procurement schedules and personnel available); ability and resources to manage a service transition.  Operations – Reasonableness of assumptions (e.g., number of routes). EXCEPTIONS TO THE TERMS AND CONDITIONS  Exceptions to the RFP and draft franchise agreement – Number and nature of the exceptions. FINANCIAL RESOURCES  Financial Stability – Comparison of additional revenue from this franchise to company’s current revenue stream, financial stability of proposer based on its financial ratios.  Insurance - Demonstrated ability of proposer to obtain adequate insurance. COSTS  Cost of service, as measured by rate revenues - Cost competitiveness relative to other proposals.  Reasonableness of costs - Logically consistent relationship between costs and operational assumptions. March 13, 2012 28 City of Hermosa Beach AWARD To be considered, proposals must be complete and must conform to the requirements of this RFP as to form, content and timely submittal. The franchise will be awarded to the proposer that the City Council determines will best assist the City to reach its goal of receiving the highest quality service at the lowest reasonable cost. The successful proposal may or may not be the lowest cost proposal. The City, however, reserves the right to reject any or all proposals, to accept or reject any one or more items of a proposal, or to waive any minor irregularities or informalities in the proposal. It is anticipated that all services will be purchased. However, the City reserves the right to change such service descriptions prior to award. March 13, 2012 City of Hermosa Beach Attachment 1 Proposal Outline The following is an outline that proposers shall follow when completing their proposals. Under each section, proposer must include all information as outlined below, including all subheadings and subsections as identified in Section V. All information outlined in Section V is required to be addressed. 1) General Requirements a) Title page b) Transmittal letter c) Table of contents d) Anti-Collusion Affidavit (Attachment 5) e) Signature page from addenda 2) Rate Proposal Forms (Attachment 3) 3) Supporting Cost and Operating Data Worksheets (Attachment 4) 4) Exceptions to Terms of Franchise Agreement and Agreement Signature Page 5) Proposer Overview a) Business Structure b) Description of Proposer’s Experience c) Information Regarding Past and Pending Litigation d) Key personnel e) Financial information f) Insurance 6) Facility Descriptions Required In Proposal a) Transfer facilities b) Processing facilities c) Operating facilities d) Disposal facilities 7) Rate Adjustment Terms/Disposal Component 8) Implementation plan 9) Collection Vehicle Description 10) Diversion Goal and Additional Diversion Programs 11) Optional HHW Program 12) Optional Food Waste Programs 13) Public Education 14) Downtown Commercial Collection Challenges 15) Cart Distribution 16) Opt-In Green Waste Program 17) Additional Proposal Requirements 18) Proposal Enhancements Page Contents 2-A Residential Cart - Rates and Service Levels 2-B Refuse Bin and Commercial Cart/Can - Rates and Service Levels 2-C Recycling Bin - Rates and Service Levels 2-D Extra Bin Pickup and Commercial Bulky Items - Rates and Service Levels 2-E Commercial Special Service - Rates and Service Levels 2-F Roll-Off Box and Temporary Bin Service - Rates and Service Levels 2-G Tonnage (CY 2010) 2-H Tonnage (CY 2011, Quarter 1) 2-I Routes and Route Hours 2-J Rate Revenue and City Fees (CY 2010) 2-K City of Hermosa Beach Facilities 2-L City-Sponsored Events 2-M Hermosa Beach Zoning Map 2-N Map of Narrow Streets and Alleys 2-O Porter Service Staff Report 2-P Lot A/Porter Service Customers ATTACHMENT 2 EXISTING SERVICE DATA Table of Contents ATTACHMENT 2 3/13/2012 2-A City of Hermosa Beach Row Residential Refuse and Recycling Services 1 Standard Monthly Rate (1)11.57$ per dwelling per month 6,621 dwelling units 2 Wheel-Out Service 4.00$ per dwelling per month 39 dwelling units 3 Wheel-Out Service for Disabled -$ per dwelling per month 26 dwelling units Row Other Services 4 Bulky Item Pick-Ups at No Charge (2)-$ 820 pick-ups 5 Bulky Item Pick-Ups at Charge (3)40.50$ per pick-up 7 pick-ups 6 Additional charge for freon items (4)13.89$ per pick-up N/A (1) Rate inclusive of $0.25/month AB 939 fee. (2) Once per year, up to 3 cubic yards per pick-up. (3) More than once per year, or more than 3 cubic yards per pick-up. (4) This charge is in addition to the standard bulky item pick-up charge, if applicable. Rate Number of pick-ups for the year ended 12/31/2010 Residential Cart - Rates and Service Levels As Of April 2011 Rate Count - Dwelling Units ATTACHMENT 2 3/13/2012 2-B City of Hermosa Beach 1 Can - 32 Gallon - 2 Cart - 32 Gallon 5 - - - - - - 5 3 Cart - 64 Gallon 15 2 - - - - - 17 4 Cart - 96 Gallon 22 - - - - - - 22 5 1 Cubic Yard 56 14 5 - - - 3 78 6 1.5 Cubic Yard 43 14 4 - - - 1 62 7 2 Cubic Yard 84 27 10 2 - - - 123 8 3 Cubic Yard 85 66 48 10 9 5 - 223 9 4 Cubic Yard 5 11 11 13 6 11 2 59 10 6 Cubic Yard 1 - - - 2 1 1 5 11 8 Cubic Yard - - 1 - - - - 1 1 Can - 32 Gallon 19.75$ 33.96$ 48.15$ 62.37$ 76.54$ 90.74$ 115.43$ 2 Cart - 32 Gallon 21.61$ 37.04$ 52.47$ 67.90$ 83.34$ 98.76$ 123.46$ 3 Cart - 64 Gallon 33.96$ 58.02$ 82.10$ 106.17$ 130.25$ 154.32$ 191.36$ 4 Cart - 96 Gallon 46.30$ 77.16$ 108.03$ 138.89$ 169.75$ 200.62$ 231.48$ 5 1 Cubic Yard 56.78$ 85.22$ 113.61$ 142.07$ 169.91$ 198.84$ 232.66$ 6 1.5 Cubic Yard 63.13$ 94.67$ 134.71$ 158.18$ 189.37$ 253.49$ 296.57$ 7 2 Cubic Yard 75.78$ 116.85$ 157.84$ 198.84$ 233.61$ 268.35$ 313.94$ 8 3 Cubic Yard 88.34$ 135.70$ 183.11$ 230.41$ 277.72$ 324.45$ 380.33$ 9 4 Cubic Yard 105.99$ 162.89$ 245.87$ 276.87$ 333.31$ 390.11$ 456.44$ 10 6 Cubic Yard 132.54$ 203.57$ 274.69$ 345.67$ 416.65$ 487.64$ 570.55$ 11 8 Cubic Yard 164.15$ 252.23$ 337.91$ 423.49$ 504.21$ 589.79$ 692.13$ (1) Service counts do not include free City services listed on Attachment 2-K. (2) Rates do not include the AB 939 fee. See Attachment 3-D for AB 939 fees. no commercial can service currently reported - this service will not be continued Refuse Container Type/Size Row Refuse Bin and Commercial Cart/Can - Rates and Service Levels As of Feburary 2012 Number of Collections per Week Number of Containers Serviced (1) Row Refuse Container Type/Size Number of Collections per Week Total Rates for the Services Provided (2) 7654321 1 765432 ATTACHMENT 2 3/13/2012 2-C City of Hermosa Beach 1 18-Gallon Cart 2 2 2 32-Gallon Cart 14 14 3 64-Gallon Cart 287 3 6 1 297 4 96-Gallon Cart 200 30 8 6 244 5 1 Cubic Yard 6 2 8 6 1.5 Cubic Yard 1 1 7 2 Cubic Yard 5 4 9 8 3 Cubic Yard 4 2 3 9 9 4 Cubic Yard 4 1 5 10 18-Gallon Cart 6.95$ 11.93$ 16.91$ 21.91$ 26.89$ 31.88$ 40.56$ 11 32-Gallon Cart 16.21$ 27.78$ 39.36$ 50.93$ 62.51$ 74.08$ 92.61$ 12 64-Gallon Cart 25.46$ 43.52$ 61.57$ 79.64$ 97.69$ 115.75$ 143.53$ 13 96-Gallon Cart 34.72$ 57.86$ 81.00$ 104.14$ 127.29$ 150.43$ 173.57$ 14 1 Cubic Yard 42.58$ 63.92$ 85.22$ 106.56$ 127.43$ 149.13$ 174.50$ 15 1.5 Cubic Yard 47.33$ 71.01$ 101.02$ 118.64$ 142.03$ 190.12$ 222.43$ 16 2 Cubic Yard 56.85$ 87.64$ 118.38$ 149.13$ 175.22$ 201.28$ 235.48$ 17 3 Cubic Yard 66.24$ 101.76$ 137.33$ 172.81$ 208.29$ 243.33$ 285.22$ 18 4 Cubic Yard 79.49$ 122.14$ 184.38$ 207.65$ 249.99$ 292.58$ 342.33$ Number of Collections per Week Total Rates for Services Provided Row Container Size Number of Collections per Week 321 7 Recycling Bin - Rates and Service Levels As of February 2012 Maximum recycling rates are set at 75% of comparable refuse service rates. Under the new agreement maximum recycling rates shall be no more than 50% of comparable refuse rates. Number of Containers Serviced Row Container Size 7654 654321 ATTACHMENT 2 3/13/2012 2-D City of Hermosa Beach Row Service Rate Count per year ended 12/31/2010 Extra Container Pick-Up: 1 Extra pick-up: 1 Cubic Yard - Refuse 40.50$ 21 2 Extra pick-up: 1.5 Cubic Yard - Refuse 40.50$ 17 3 Extra pick-up: 2 Cubic Yard - Refuse 40.50$ 19 4 Extra pick-up: 3 Cubic Yard - Refuse 52.07$ 35 5 Extra pick-up: 4 Cubic Yard - Refuse 52.07$ 26 6 Extra pick-up: 6 Cubic Yard - Refuse 52.07$ 4 7 Extra pick-up: 8 Cubic Yard - Refuse 61.78$ 3 Commercial Bulky Item Pick-up: 8 Bulky Item Pick-Up: 1-2 items 27.31$ 91 9 Bulky Item Pick-Up: 3-5 items 54.61$ 22 10 Bulky Item Pick-Up: 6-10 items 109.21$ 7 11 Bulky Item Pick-Up: Each additional item 27.31$ 0 Extra Bin Pickup and Commercial Bulky Items - Rates and Service Levels ATTACHMENT 2 3/13/2012 2-E City of Hermosa Beach 1 Scout Truck 34 31 32 11 4 2 3 2 Push-Out Service (per 50 feet) (1)64 31 6 5 3 3 - 3 Locking Bin 23 8 5 3 - - - 1 Scout Truck 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 2 Push-Out Service (per 50 feet) (1)11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 3 Locking Bin 5.79$ 5.79$ 5.79$ 5.79$ 5.79$ 5.79$ 5.79$ (1) Not applicable for push-outs less than ten feet. Fee may be charged once for 10 to 50 feet, twice for 51 to 100 feet, etc. Number of collections per week 7654 Special Service Rates 21 Row Service Number of collections per week Commercial Special Services - Rates and Service Levels As of February 2012 Number of Bin Services with Special Services Row Service 3 7654213 ATTACHMENT 2 3/13/2012 2-F City of Hermosa Beach Row Container/Service Type AB 939 Fee 1 Roll-off Box Pulls: 2 Standard Roll-off Box 168.50$ per pull 23 pulls 3 Temporary Roll-off Box 168.50$ per pull 26 pulls 4 Compactor Roll-off Box (30 cubic yard)336.99$ per pull 12 pulls 5 City Roll-off Box Pulls -$ per pull 206 pulls 6 COD Roll-off Pulls - Disposal included (up to 7 tons) 420.16$ per pull 49 pulls 7 Total Pulls 316 pulls 8 Roll-off Box Tons 9 Dump Fee 35.95$ per ton 205 tons 10 Dump Fee, Compactor 48.00$ per ton 75 tons 11 Dump Fee - City Pulls -$ per ton 860 tons 12 Dump Fee - included in COD/disposal inclusive pulls -$ per ton 205 tons 13 Total Tons 1,345 tons 14 Temporary Bin, 3 cubic yard 80.99$ per pull 51 pulls Roll-Off Box and Temporary Bin Service - Rates and Service Levels FY 2011 Contractor Rate # of Services Provided 12- Months Ended 12/31/2010 ATTACHMENT 2 3/13/2012 2-G City of Hermosa Beach January 488.89 17.01 23.57 - 104.47 633.94 128.04 February 453.21 21.47 5.80 - 131.91 612.39 137.71 March 555.58 24.23 - - 148.87 728.68 148.87 April 523.17 20.72 - - 127.29 671.18 127.29 May 477.40 22.50 - - 138.18 638.08 138.18 June 552.48 28.88 - - 177.43 758.79 177.43 July 545.52 30.25 - - 185.83 761.60 185.83 August 556.47 26.06 - - 160.09 742.62 160.09 September 532.00 27.17 - - 166.87 726.04 166.87 October 469.21 23.03 12.98 - 141.47 646.69 154.45 November 516.62 30.41 - 7.96 186.78 741.77 194.74 December 535.09 30.67 - - 188.40 754.16 188.40 Total 6,205.64 302.40 42.35 7.96 1,857.59 8,415.94 1,907.90 January 195.49 25.77 143.25 364.51 169.02 January 64.87 5.53 - - 70.40 5.53 February 398.58 29.74 143.25 571.57 172.99 February 66.95 - 7.64 5.84 80.43 13.48 March 617.77 39.87 - 657.64 39.87 March 102.96 0.77 19.21 - 122.94 19.98 April 285.28 39.27 287.00 611.55 326.27 April 81.90 4.68 2.30 - 88.88 6.98 May 391.01 38.22 143.25 572.48 181.47 May 114.47 - 14.42 - 128.89 14.42 June 311.48 48.43 287.00 646.91 335.43 June 112.56 - 25.53 - 138.09 25.53 July 292.35 47.78 300.00 640.13 347.78 July 95.72 4.90 19.94 - 120.56 24.84 August 174.24 40.90 415.25 630.39 456.15 August 106.68 15.08 26.39 - 148.15 41.47 September 554.48 39.38 - 593.86 39.38 September 101.43 - 20.18 - 121.61 20.18 October 552.25 36.37 - 588.62 36.37 October 95.44 2.59 31.39 - 129.42 33.98 November 544.28 44.67 - 588.95 44.67 November 83.53 3.97 19.43 1.85 108.78 25.25 December 561.56 57.73 - 619.29 57.73 December 74.96 - 12.31 - 87.27 12.31 Total 4,878.77 488.13 1,719.00 7,085.90 2,207.13 Total 1,101.47 37.52 198.74 7.69 1,345.42 243.95 Collected Diverted Diversion % Residential 8,415.94 1,907.90 23% Commercial 7,085.90 2,207.13 31% Industrial 1,345.42 243.95 18% Total 16,847.26 4,358.98 26% C&D Commercial Industrial Refuse Container Source- Separated OtherHoliday TreesRecycling Residue Refuse Container Transformation Summary Green WasteRefuseMonth Recycling Total Tonnage Month RefuseMonth Recycling Residential Tonnage (CY 2010) Recycling Container - Diverted Total Tonnage Diverted Total Tonnage Diverted Total Tonnage Collected Total Tonnage Diverted Total Tonnage Collected Other Green Waste ATTACHMENT 2 3/13/2012 2-H City of Hermosa Beach January 508.11 21.51 20.22 1.50 142.69 694.03 164.41 February 447.64 17.11 - - 141.43 606.18 141.43 March 577.64 18.46 - - 188.80 784.90 188.80 April 504.62 In refuse tonnage 6.28 137.45 648.35 143.73 May 592.24 In refuse tonnage 10.00 131.74 733.98 141.74 June 600.72 In refuse tonnage - 147.72 748.44 147.72 July 517.90 In refuse tonnage - 128.54 646.44 128.54 August 566.93 In refuse tonnage 23.15 134.09 724.17 157.24 September 488.31 In refuse tonnage 2.54 148.70 639.55 151.24 October 470.78 In refuse tonnage 9.70 118.51 598.99 128.21 November 503.75 In refuse tonnage - 137.19 640.94 137.19 December 455.95 In refuse tonnage - 156.46 612.41 156.46 Total 6,234.59 57.08 20.22 53.17 1,713.32 8,078.38 1,786.71 January 569.06 38.19 - 38.19 607.25 38.19 January 75.89 9.73 5.07 - 5.07 90.69 February 507.41 34.98 - 34.98 542.39 34.98 February 95.58 4.29 41.49 6.68 48.17 148.04 March 439.53 43.08 150.00 193.08 632.61 193.08 March 96.17 3.55 30.38 8.26 38.64 138.36 April 349.31 232.45 581.76 232.45 April 70.34 - 54.34 124.68 May 354.20 233.73 587.93 233.73 May 85.68 - 23.86 109.54 June 383.76 289.19 672.95 289.19 June 122.35 6.70 42.48 171.53 July 325.72 281.86 607.58 281.86 July 117.24 5.47 37.39 160.10 August 340.95 282.54 623.49 282.54 August 105.51 7.79 9.98 123.28 September 454.63 135.82 590.45 135.82 September 104.33 12.76 44.10 161.19 October 211.84 381.89 593.73 381.89 October 77.71 4.59 53.84 136.14 November 555.87 35.17 591.04 35.17 November 78.68 9.41 36.00 124.09 December 570.23 40.47 610.70 40.47 December 86.05 11.72 50.20 147.97 Total 5,062.51 2,179.37 7,241.88 2,179.37 Total 1,115.53 76.01 444.07 1,635.61 Collected Diverted Diversion % Residential 8,078.38 1,786.71 22% Commercial 7,241.88 2,179.37 30% Industrial 1,635.61 520.08 32% Total 16,955.87 4,486.16 26% Total Tonnage CollectedSource-Separated Transformation C&D OtherTotal Total Summary Month Refuse Green Waste Holiday Trees Other Commercial Industrial Month Refuse Total Tonnage Collected Total Tonnage Diverted Recycling Recycling Tonnage (CY 2011) Residential Refuse Container Green Waste Total Tonnage Month Recycling Container - Diverted Total Tonnage DivertedRefuse Container Recycling Residue ATTACHMENT 2 3/13/2012 2-I City of Hermosa Beach 1 Residential Refuse 3.0 3.0 3.0 3.0 3.0 - - 15 5.75 86 1 2 Residential Recycling 3.0 3.0 3.0 3.0 3.0 - - 15 5.75 86 1 3 Bin Refuse 2.0 2.0 2.0 2.0 2.0 - - 10 11.00 110 1 4 Bin Recycling 1.0 1.0 1.0 1.0 1.0 - - 5 7.00 35 1 5 Roll-off Route 1.0 1.0 1.0 1.0 1.0 1.0 - 6 4.00 24 1 6 Scout Service 1.0 1.0 1.0 1.0 1.0 1.0 - 6 3.00 18 1 7 Bulky Item Truck 3.0 3.0 3.0 3.0 3.0 - - 15.0 2.00 30 1 8 Total 14.0 14.0 14.0 14.0 14.0 2.0 - 72 390 Total Route Days Per WeekMondaySundaySaturdayFridayThursdayWednesdayTuesday Crew Size Routes and Route Hours As of April 2011 Hours per Route per Day Total Route Hours Per Week Row Route / Service Type # of Truck Routes ATTACHMENT 2 3/13/2012 2-J City of Hermosa Beach January 96,250$ 9,625$ 1,329$ 67,820$ 6,782$ 3,276$ 164,070$ 16,407$ 4,605$ February 87,850$ 8,785$ 1,326$ 90,900$ 9,090$ 3,231$ 178,750$ 17,875$ 4,557$ March 96,130$ 9,613$ 1,326$ 67,550$ 6,755$ 3,263$ 163,680$ 16,368$ 4,589$ April 92,830$ 9,283$ 1,330$ 66,250$ 6,625$ 3,200$ 159,080$ 15,908$ 4,530$ May 95,590$ 9,559$ 1,331$ 67,610$ 6,761$ 3,265$ 163,200$ 16,320$ 4,596$ June 92,730$ 9,273$ 1,333$ 68,630$ 6,863$ 3,315$ 161,360$ 16,136$ 4,648$ July 94,120$ 9,412$ 1,334$ 68,490$ 6,849$ 3,308$ 162,610$ 16,261$ 4,642$ August 94,310$ 9,431$ 1,338$ 68,160$ 6,816$ 3,292$ 162,470$ 16,247$ 4,630$ September 91,980$ 9,198$ 1,336$ 68,460$ 6,846$ 3,307$ 160,440$ 16,044$ 4,643$ October 94,150$ 9,415$ 1,336$ 68,470$ 6,847$ 3,307$ 162,620$ 16,262$ 4,643$ November 92,160$ 9,216$ 1,336$ 68,470$ 6,847$ 3,307$ 160,630$ 16,063$ 4,643$ December 93,960$ 9,396$ 1,338$ 68,440$ 6,844$ 3,306$ 162,400$ 16,240$ 4,644$ Annual Total 1,122,060$ 112,206$ 15,993$ 839,250$ 83,925$ 39,377$ 1,961,310$ 196,131$ 55,370$ (1) Includes roll-off and temporary service revenue. TotalResidential Revenue includes fees. Collector fee is 10% of total revenue. AB 939 fees are $0.25 per home per month, and $0.25 per cubic yard of refuse collected. Rate Revenue and City Fees (CY 2010) Month AB 939 FeeCollector FeeRevenueAB 939 FeeCollector FeeRevenueAB 939 FeeCollector FeeRevenue Commercial (1) ATTACHMENT 2 3/13/2012 2-K City of Hermosa Beach Row Service Location/Address Service Type Container Size Container Count Frequency of Collection 1 City Hall / 1315 Valley Dr Refuse 3 cubic yard 1 3x week 2 City Hall / 1315 Valley Dr Recycling 65 gallon 6 6x week 3 City of Hermosa Beach / 1035 Valley Dr Refuse 4 cubic yard 1 2x week 4 City of Hermosa Beach / 1035 Valley Dr Recycling 3 cubic yard 1 2x week 5 City of Hermosa Beach / 1309 Hermosa Ave Refuse 3 cubic yard 1 5x week 6 City of Hermosa Beach / 861 Valley Dr. (1)Recycling 3 cubic yard 1 2x week 7 Hermosa Beach Fire Dept / Pier and Valley Recycling 95 gallon 2 1x week 8 Hermosa Beach School Dist / 1645 Valley Dr Recycling 3 cubic yard 2 3x week 9 Hermosa Beach School Dist / 1645 Valley Dr Refuse 3 cubic yard 2 5x week 10 Hermosa Beach School Dist / 1645 Valley Dr Refuse 4 cubic yard 1 5x week 11 Hermosa Beach School Dist / 1800 Prospect Refuse 4 cubic yard 1 3x week 12 Hermosa Beach School Dist / 1800 Prospect (2)Recycling 4 cubic yard 1 1x week 13 Hermosa Beach School Dist / 1800 Prospect Recycling 1 cubic yard 1 3x week 14 Maintenance Dept / 710 Pier Ave Refuse 3 cubic yard 2 3x week 15 Maintenance Dept / 710 Pier Ave Recycling 65 gallon 2 1x week 16 Maintenance Dept / 710 Pier Ave Refuse 40 cubic yard 2 On Call (1) In 2010, there were also 5 green waste roll-off box loads collected from this City location. (2) In 2010, there were also 2 green waste roll-off box loads collected from this school location. City of Hermosa Beach Facilities The following is the current estimate of services provided at no cost at City facilities. Service levels may vary over the term of the agreement. These services are not included in the Attachment 2-B and 2-C service levels. ATTACHMENT 2 3/13/2012 2-L City of Hermosa Beach Count of boxes Count of liners 1 New Year's Eve Not a specific event. Contractor to provide litter and recycling boxes in public areas due to increased pedestrian activity. 1 25 50 2 California Coastal Cleanup City event. Contractor to provide litter and recycling boxes.1 25 50 3 Sunset Concert #1 City event. Contractor to provide litter and recycling boxes.1 25 50 4 Sunset Concert #2 City event. Contractor to provide litter and recycling boxes.1 25 50 5 Sunset Concert #3 City event. Contractor to provide litter and recycling boxes.1 25 50 6 Sunset Concert #4 City event. Contractor to provide litter and recycling boxes.1 25 50 7 Art Walk Sponsored by non-profit. Small quantity of waste. Contractor to provide litter and recycling boxes. 2 10 20 8 St. Patrick's Parade Large City event. Contractor to provide litter and recycling boxes.1 20 40 9 Surfer's Walk of Fame/Spyder City event. 100 to 150 people. Litter and recycling boxes to be provided.1 20 40 10 Little League Opening League to provide litter and recycling boxes. 1 20 40 11 Little League Night in Ballpark League to provide litter and recycling boxes. 2 10 20 12 Fiesta (Spring)Chamber of Commerce event. Chamber purchases boxes and liners.3 50 100 13 Fiesta (Fall)Chamber of Commerce event. Chamber purchases boxes and liners.3 50 100 14 Snowfest Private promoter. Promoter will be responsible for litter and recycling boxes. 40 80 15 USAV Beach Volleyball (AVP) Private promoter. Promoter will be responsible for litter boxes and for refuse removal, by bin or otherwise. 3 40 80 16 HB 5000 - 5K Race Private promoter. 200 to 300 people. Promoter will be responsible for litter boxes and for refuse removal, by bin or otherwise. 1 15 30 17 HB Day at the Beach Triathlon Private promoter. Promoter will be responsible for litter boxes and for refuse removal, by bin or otherwise. 1 20 40 Estimate of Litter Box Requirements Services as Required Under New Agreement City-Sponsored Events Row Event Name Event Duration (days) Below is a list of special events for which the current contractor has been providing litter boxes, and for which waste has been placed in park bins or taken by City crews to the yard for disposal by the current contractor at no additional charge. The exception is that the Chamber of Commerce already pays for litter boxes and liners at its Fiesta events. Under the new agreement, the City will be transitioning event promoters to paying directly for services. Contractor shall be required to provide litter and recycling containers to the specified events below (events 1 through 9) at no additional charge. Solid Waste from events shall continue to be placed in containers serviced by the contractor at no addtional charge unless otherwise noted (events 1 through 14). Litter boxes and liners are only an estimate. If the City sponsors additional events in the future, contractor shall be responsible for servicing those events at no additional charge as well. North School Valley School Hermosa View School Community Center ClarkStadium CivicCenter South Park ValleyPark BeachBeach2 0 0 2 0 2 3 0 5 5 3 3 2 2 5 5 5 2 2 2 3 3 2 0 4 5 5 3 5 3 5 2 2 5 0 0 3 0 5 5 5 5 3 50 5 5 2 2 2 3 5 3 5 5 3 5 10 5 5 2 3 2 3 5 3 5 5 5 10 10 2 10 10 0 2 10 5 5 2 5 0 3 10 10 310 522 233 556 222 0 3 10 10 1010 2 2 15 3 10 4 5 5 5 03 3 2 10 10 10 OS OS OS OS OS OS OS OS OS OS R-3 OS-1 OS OS C-3 OS OS OS R-3 RPD OS-1 OS C-3 R-3 R-3 OS OS-1 R-3 OS-1 R-2 RPDRPDRPDRPDRPDRPD RPDRPDRPDRPDRPDRPD RPDRPDRPD RPD RPDRPDRPDRPDRPD RPD RPDRPDRPD RPDRPDRPD RPDRPDRPDRPDRPDRPD RPDRPD RPD RPD MHP C-3C-3C-3 C-3C-3C-3 C-3C-3C-3 C-3C-3C-3 C-3C-3C-3 C-3 C-3 C-3C-3 C-3 C-3C-3 C-3 C-3C-3 C-3 C-3 C-3C-3C-3 C-3C-3 C-3 M-1 MHP C-3 R-3R-3R-3 R-3R-3R-3 R-3R-3R-3 R-3R-3R-3 R-3R-3R-3 R-3 R-3R-3 R-3R-3 R-3R-3 R-3 R-3R-3 R-3R-3R-3 R-3 R-3 R-3 R-3 R-3R-3R-3 SPA-8 OS R-3 R-3R-3R-3 R-3R-3R-3 R-3 R-3 R-3 R-3R-3 R-3R-3 R-3 R-3R-3 R-3 R-3 R-3R-3 R-3R-3 R-3 R-3R-3 R-3R-3R-3 R-3 R-3 R-3R-3 R-3 R-3R-3 R-2 R-1 SPA-8 OS C-3 C-3 R-3R-3R-3 R-3R-3R-3 R-3R-3R-3 R-3R-3R-3 R-3R-3R-3 R-3 R-3R-3 R-3 R-3R-3R-3 R-3 R-3 R-3 R-3R-3 R-3 R-3R-3 R-3 R-3 R-3 R-3R-3R-3 R-3R-3R-3 R-3R-3R-3 R-3R-3R-3 R-3R-3R-3 R-3 R-3R-3R-3R-3 R-3R-3 R-3 R-3R-3 R-3 R-3 R-3 R-3 R-3 OS OS OS-1 R-2 R-3R-3R-3R-3 R-3R-3R-3 R-3R-3R-3 R-3R-3R-3 R-3R-3R-3 R-3R-3 R-3 R-3R-3 R-3 R-3 R-3R-3 R-3R-3R-3 R-3 R-3 R-3 R-3 R-3 R-3 R-3 R-3 R-3R-3 C-3 SPA-8 M-1 M-1 OS-1 C-2 R-2R-2 R-2R-2 R-2R-2 R-2R-2 C-3 C-3 RPD C-3 C-3 C-3 SPA-7 C-3 SPA-7 OS-2 OS SPA-7 C-3 SPA-8 SPA-6 OS R-1 C-2 R-1 C-3 R-1 C-3 C-3 OS R-2R-2R-2R-2 R-2R-2 R-2R-2 R-2R-2 R-2R-2 OS SPA-7 C-3 R-1 R-2R-2 R-2R-2 R-2R-2R-2 R-2R-2 R-1 C-3 R-1 R-3PD R-3PD R-3PD R-3PD R-1 R-1 OS OS C-3 C-2 R-1 R-PR-P R-PR-P R-PR-P R-PR-P R-PR-P R-P R-PR-PR-P OS-1 SPA-8 R-3 R-2 R-3 R-1 SPA-6 R-1 OS-1 R-1 OS-1 C-3 C-3 OS SPA-8 C-2 R-1 R-1 C-2C-2C-2 C-2 C-2C-2 C-2 C-2C-2 R-1 R-2R-2R-2R-2 R-2R-2 R-2R-2 R-2 C-3 OS R-1 R-1R-1 R-1R-1R-1 R-1 SPA-8SPA-8 SPA-8SPA-8 SPA-8SPA-8 SPA-8SPA-8 SPA-8 SPA-8 SPA-8SPA-8 SPA-8 R-1 C-3 R-3 R-1 R-1 R-1 R-1 R-1 R-1 SPA-3SPA-3 SPA-4 SPA-3SPA-3 SPA-3 SPA-3SPA-3 R-1 C-3 C-2C-2 C-2C-2 C-2C-2 C-2C-2 C-2C-2 C-2 C-2 C-2 C-2 C-2 R-2R-2 R-2R-2 R-2R-2 R-2R-2 R-1 C-2 C-3 OS OS OS OS M-1 SPA-7 SPA-4SPA-4SPA-4SPA-4 SPA-4SPA-4 SPA-4SPA-4 SPA-4 SPA-4 R-3 R-3R-3 R-3R-3 R-3R-3R-3R-3 R-3R-3 C-3 R-3R-3 R-3R-3 R-3R-3 R-3 R-3R-3 R-3 R-3R-3 R-3 R-2R-2 R-2R-2 R-2R-2 R-2 R-1 C-3 C-3 C-3 R-2R-2 R-2R-2 R-2R-2 R-2 R-P R-1 C-3 M-1 OS C-2 C-2 R-1 C-2 C-2 SPA-7 SPA-7 C-2 M-1 C-3 OSR-3R-3 R-3R-3 R-3R-3 R-3R-3R-1R-1 M-1R-2 SPA-11 R-3R-3 R-3R-3 R-3 R-1A OS R-1 R-1 M-1 R-1 R-1 R-3R-3 R-3 R-3R-3 R-3 R-3 R-1 R-2 R-1 R-3 R-1 C-3 R-3R-3 R-3R-3 R-3 R-3R-3 SPA-8 R-2R-2 R-2R-2 C-3 R-1 R-1 C-2 R-1 R-1 SPA-8 R-2 R-1 C-3 M-1 R-2B R-2B R-2BR-2B R-2B SPA-7 R-1 R-1 R-1 R-1 R-2 R-2R-2R-2 R-2R-2 R-2R-2 R-2 C-3 R-1 OS R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-3 R-3R-3 R-3 R-3R-3R-3 R-3 R-1 R-2R-2 R-2 R-2R-2 R-1 R-1 SPA-8 R-2R-2 R-2 R-2 R-2R-2 R-2R-2 R-1 R-1 SPA-11 SPA-7 R-3 C-2 R-1 R-3R-3R-3 R-3 R-3R-3R-3 R-3 C-2 C-2 R-1 R-1 R-1 R-1 R-1R-2BR-2B R-2BR-2B C-3 R-1 R-3 R-1 R-1 SPA-7 R-1 C-2 R-3 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 SPA-7 R-1 C-2 R-3 R-3 R-3 R-3 R-3R-3 R-3 R-3R-3R-3R-3 R-3R-3 R-3R-3R-3 R-3 R-3 R-3 R-3 R-3R-3 R-1 C-2 R-3R-3 R-3R-3 R-3R-3 R-3 C-2 C-2 R-3 R-3 R-1 C-2 R-3 R-3R-3 R-3R-3 R-3 C-3 C-3 R-2BR-2B R-2BR-2B R-2B R-1 R-1 R-1 R-1 R-1 C-3 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-2R-2 R-2 R-2 R-1 R-2 SPA-7 R-2B R-1 R-1 R-2 R-1 R-1 R-1 R-1 C-3 R-1 R-1 R-1 R-1 R-1 SPA-7 R-2R- 2 R-2R- 2 C-1 R-1 C-2 R-2B C-2 SPA-8 R-1 R-1 R-1 C-3R-3 R-1 R-1 R-1 C-1C-1C-1C-1 C-1C-1 R-1 R-1 R-1 R-1 R-1 R-1 M-1 R-1 R-1 R-1 R-1R-1R-1 C-2 R-1 R-2R-2R-2R-1 R-2R-1R-1R-1 R-1R-1C-3 R-2R-2R-2R-3R-1 R-1 R-1 R-1 R-1R-1C-3 SPA-8 SPA-7 SPA-7SPA-7SPA-7SPA-7SPA-7R-1 R-1 R-1 R-1 R-2 R-1 C-3 SPA-8 R-1 R-1 R-1R-2R-2R-2R-1 R-1R-3R-2R-2R-2R-2R-2R-2R-1 R-1 R-1 R-3R-3R-3 R-3 R-2BR-2B R-1 R-1 R-1 R-1 R-1R-1 R-1 R-1 R-1 R-1 R-1 R-2 R-1 C-3 R-2R-2R-2 R-2 R-1 R-3R-3R-3R-3 SPA-7 R-1 R-1 R-1 R-1 R-1 R-1 R-2B R-PR-1R-P R-1 R-P R-2BR-2B C-3 R-1 R-PR-PR-PR-PR-PR-PR-PR-PR-PR-PR-PR-PR-PR-PR-PR-P R-1 R-2B R-1 R-PR-P R-3 R-2B R-1 R-1R-PR-PR-PR-PR-P OS R-PR-PR-PR-PR-P SPA-7 R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1 R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-3R-3R-3 R-3R-1AR-1 C-3R-1R-1 R-3R-3 R-3R-3 R-2 R-1R-1R-2 R-1R-1R-1R-1 R-1 M-1R-1 R-1 R-2R-2R-2R- 1 R-1 R-1R- 1 R-1 R-2 R-2R-1R-3 R-3 R-1 R-3 R-3R-3 R-3 R-3 R-1 R-1 R-3 R-3 R-3 R-3R-3R-3 R-3 R-3R-1R-1 R-1R-1R-1R-1R-1R-3R-3R-3 R-3R-1R-1R-1R-1R-1R-1R-1R-1R-1 R-3 R-1 R-1 R-2R-2R-2R-1 R-1 R-1 R-3R-3 R-3 R-3 R-1 R-3 R-3 R-3 R-1 R-1 R - 1 R-2B R-2BR-2BR-2BR-2BR-2BR-2BR-2BR-1 R-2B R-1 R-1R-1 C-2 C-2 C-2 R-2B R-3 R-1 R-3R-3R-3 R-3 R-3 R-3R-3R-3 R-3 R-3 R-1 R-3 R-PR-PR-PR-PR-2R-1 R-1 R-1R-1R-1R-1R-2BR-1R-1R-1R-1R-1R-1R-2R-2R-2R-1R-1R-1 R-1 R-1 R-1 R-1 R- 1R-2C-2R-2R-3R-3R-3R-2R-2R-2R-2R-2R-3R-3R-3R-3C-3R-1 R-1 R-1R-1R-1 R-1 SPA-7R-1R-1 R-1 M-1 R-2 R-3 R-1 R-1R-1R-1R-3 R-3 R-3 R-1R-1R-1 R-2 SPA-8 R-1SPA-7 R-1 R-1R-1R-1 R-1 R-1 R-1R-1R-1 R-1 R-1R-1R-1R-2R-2R-3 R-1 R-1R-1R-1R-1R-3R-3 R-3 R-3R-1R-1AR-1R-1R-1AR-1AR-1R-1AR-1AR-1R-1 R-2 R-1R-1AR-1AR-1AR-1 R-1R-1 R-1 R-1 R-1AR-1R-1AR-3R-3R-3R-3R-1R-1 R-1 R-1 R-1 R-1R-1R-1R-2 R-2B R-2R-2R-2R-1R-2R-1R-1R-1R-2R-2R-2R-1R-2R-1R-2R-2R-2R-1 R-2R-2R-2 R-1R-1SPA-8 C-2R-1 R-1R-1R-1R-1R-3 R-1 R-1 R-1 R-1 R-3 R-1R-1AR-1AR-3R-3R-3 R-3 R-1 R-1 R-1R-2R-2 R-2 SPA-7R-1R-1R-1 R-1 R-1R-1R-2BR-1 R-1 C-1R-1AR-1 R-2R-1AR-1AR-1AR-1AR-2 R-1AR-1AR-1AR-1AR-1AR-1 SPA-11R-1AC-3R-1R-2 R-1 C-2R-1AR-1 R-1 R-1R-1AR-1R-1C-1 R-1 R-3R-3R-3 R-3 R-2BR-2R-2R-2R-1R-2 R-1 R-2BR-1S P A - 7 R-3 R-1 R-1A R-1R-1AR-1R-2R-2 R-2 R-2 R - 2 R-1SPA-7R-2BR-2BR-3 R - 1 R-1R-2R-2SPA-11 R-2B R-2B R-1 R-1 R-1 R-1 R-2B R- 1 R-1 R-3 R-1 R-1 R-2BR-2B R-2B R-2R-2C- 3 R-1 C- 3R-1R-3 R-1 R-3R-3R-1R-3 C- 3R-1R-3R-1R-1R-1R-1R-3R-3R-3R-1R-1R-3C-2R-1R-1R-1C-3 R-1 R-1R-1R-1R-1R-1R-2R-1R-3 R-3R-3R-3R- 1 R-3R-3 R-3 R-1R-1R-3R-3 R-3 R- 1 R-3 R - 1 R-1R-2 R-1R-2 R-1R-3 R-3R-3 R-3 R-1R-3 R-1R-1R-1R-1 R-1R-1R-1R-1R-3R-3R-3R-1R-1R-1R-1R-1 C- 3R-1R-1 R-1R-3R-1R-3R-1R-1 R-3 R-3R-3R-3 R-3R-3 R-3R-3 R-1R-1R-3R-3R-3R-1 R-3R-3R-3R-1R-1R-1R-1R-1R- 1 R-1R-1 R-1 R-1 R-1R-2 R-1R-1R-1R-1 R-3 R- 1 R- 1 R-1R-1R-1R- 1 R-1R-1R-1R-1R-1R-1 R-1 R-1 R-1R-1R-1R-1R-1 R-1 R-3 R-1R- 1 R- 1 R-1 R-1R-1R-1C- 3 R-1R-1R-1R- 1 R-1R- 1 R-1 R-1R-1R-1R-1R-1R-1 R-1 R-1R-1R-1R-1R-1R-1R- 1 R-1R-1R-1R-3 R-1R-1R-1R-1R-3R-3R-3R-1R-1R-1R-1 R-3 R-3R-3 R-3 R- 1 R-1 R-3 R-1R-1R-1R-1R-3R-3R-3R-1R-1R-3R-3R-3R-3 R-2 R-1R-1 R-1R-1 R- 1 SPA-11 R-1R-1R-1 R-2 R-1R-1 R-1 R-3R-3R-3R-1 R-2 R-2R-2 R-2 R-1 C-1 R-2 R-2R-2R-2R-1 R-1R-1 R-2BR-1R-1 R-2 C-3 R-2 R-2 SPA-7 C-1 R-1R-1 M-1 R-1R-1 R-2R-2R-1R-2R-1 R-2R-2 R-1 R-1R-2R-2BR-2BR-2R-2R-2R-1 R-2R-2R-2M-1 R-2R-2R-2 R-1 R-2R-2R-2R-1 R-2C-3R-2R-2R-2 R- 2R-1R- 1 R-1 C-3R-2BR-1R- 2 R-1 R-1R-1R-2 R-2BR-2BR-2BR-2 R-3 R-3 R-3 R-3R-3R-3R-2 C- 3 C-1 C-3 R-1 C-2 R-2 SPA-8 R-3R-3 R-3R-3 R-3R-1R-1 R-1 R-2R-2R-2 R-1 R-1R-1R-1 R-2BR-1R-1AR-1 R-1 R-1 R-1 R-1R-1 R-2 C-3 R-1 R-3 R-1 R-1R-1 R-2R-2 R-1 R-2R-2R-2R-2 C-2 SPA-8 R-2R-2R-2R-2R-2R-2R-2R-2R-1 R-2R-2R-2C-3R-1 R-2R-2R-2R-1 R-3 R-2R-2R-1 R- 2B R-1A R-2BR-2BR-1 R-1R-1 M-1 R-1R-1 R-1R-1 R-1 R-2R-2M-1 R-3 R-1 R-1 R-3 R-3 R-3 C-3 R-1 R-3R-3 R-3R-3 R-1R-1 R-2 R-2R-2 R-3R-3 R-3 R-2BR-2R-1R-1R - 2 R-1 R-1 R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2 R-1 R-3R-3 R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2SPA-11R-2R-2R-2R-2R-2R-2R-2R-2R-1R-2R-2R-1R-2 R-1 R-2R- 1 R-1 R-2R-2R-1 R-2 R-1 C-2 R-1 R-2R-2BR-2BR-3R-3 R-3 R-2BR-1R-1 R-2 R-1C-1 R-2B R-2 R-1 R-1R-1R-1 R-1 R-1R-1 R-1R-3R-2R-1R-1R-1R-1R-1 R-1R- 2 R-1R-1R-1 R-1R-3 R-1 R-1R-3 R-3 R-1 R-1R-1R-1R-1R-1R-1R-2BR-2B R-1 R-1 R- 1 R- 1 R-1 R-1R-1 SPA-8R-1R-1 R-2R-2 R-3R-3R-1R-1R-2BR-1R-1 R-1 SPA-11 R-1R-1 R-1R-1R-1 C-2 R-1 R-1R-3R-3 R-3 R-2 R-1R-1R-1 R-3R-3 R-3 R-1R-1 R-2B R-1 C-2 R-1 R-1R-1 R-1R-1R-1R-1R-1R-1R-1R-1 R-2R-2 R-1 R-1 R-1R-2R-2R-1R-1 C- 3 R-2R-2R-2 R-2 R-1R-2R-1R-2SPA-8 R-2R-2 R-1 R-2R-2R-2R-2R- 1 R-2R-2R-2R-2R-2R-2R-2R-2R-2 R-1R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-1R-2R-1R-2R-2R-2R-1R-2R-2R-2B R-2BR-2B R-1R-1R-2R-2R-2R-2R-2R-1R-2R-2R-2 R-2 R-2R-1R-2R-2R-2R-1R-2 R-3 R-3 R-1R-2B R-2BR-2B R-1 R-1R-1R-1R-1R-1R-1 R-3 R-2B R-3 R-1R-1R-2BR-1R-1R-1 SPA-11 R- 1 M-1 R-3 R-1R-2BR-3R-1R-2BR-3R- 2 R-3R-3 R-3 R-2 R-3 R-2 R-1 R-3R-3 R-3 R-3 R-3 R-3 M-1R-2 R-1R-1R-2 R-1 R- 1 R-1 R-1 R-1 R-2R-1 R-1R-1R-1R-1 R-1 R-1 R-1R-1R-1R-1R- 1 R- 1R-1 R-1 R-1 R-1R-2R-2 R-2R-2 R-2C-3R-1R-1R-3 R-2R-3 R-2 R-3 R- 1R-1R-2 R-1 R- 1 R-1 R- 1R- 1 R-1R-1 R-1 R-2 R-2R-2 R-2 R-2 R-1R-1R-3R-3 R-3 R-1 R-1 R-1 R-1 R-1 R-1 C-1R-1 R-1 C-2 R-1 R-1 R-1 R-3 R-1 SPA-7R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2R-2 R-2 R-3R-3 R-3 R-1R-2R-2R-3R- 1 R-2R-1R-2R-1R-1R-1R-1R-1R-1 R-1 R-1R-1 R-1 R-1 R-1SPA-8 R-1 R-3 R-1R-1R-1R-1R-1 R- 1R-1R-1R-1R-1R-1 R-1 R-3R-3 R-3 R-1R-1 R-1 R-1R-1R-1R-1C-3R-1R-1R-1R-1 R-1 R-3R-3 R-1 OSR-1 R-2BR-1R- 1R-2BR-1C-2R-1R-1R-1R-2 R-3 R-1R-1R-2 R-3 R-1R-1 R - 1 R-3 R-1 R-1 R-3 R-2 R-3 R-1R-2BR-2BR-3R-3 R-3 R-1 R-3 R-3R-3 R-3 R-3 R-3 R-2BR-2BR-1R-2BR-2BR-1R-3R-3 R-3 R-1C-1 R-1R-2BR-2BR-2BR-2BR-2BR-2BR-2BC-2 R-1R-2BR-1R-1R-2BR-2B R-1 R-3 R-2BR-2BR-2BR-2BR-1 R-2BR-2BR-2BR-2BR-2BR-2BR-1R-1R-2BR-2BR-2BR-2BR-1R-2BR-2BR-1 R-3R-3 R-1R-1R-1R-1C-2 C-2 R-3R-3 R-1R-3 R-1R-3 C-2 R-1 R-3 R-3 R-3 R-3R-3 R-3 C-2 R-3 R-3 R-3 R-1R-3R-3 R-1R-3 R-1R-3 R-3 R-1 R-3 R-1R-3R-1R-1R-3 R-1R-1 R-1R-1R-3R-1R- 1 R-1R-1 R-3 R-2BR-2B R-3R-3 R-3 R-1 R-3 R-1R-3R-3 R-3 R-1R- 1 R-3R-3 R-3 R-1R-1R-2B R-3 R-3 R-3R-3 R-3 R-1R - 1 R-1R-1R-1R-1R-3 R-1R-2BR-3 R-3 R-3 R-3 R-3 R-3 R-1R-2BR-2BR-1R-1R-2BR-1 R-1 R-1 R-1R-1 R-1R-3 R-3 R-3 R-3 R-1 R-3 R-1 R-3 R-3 R-3 R-1R-1R-3 R-1R-2R-2 C-2 R- 1 R-1 R-3 R-3R-3 R-3 R-3R-3 R-3 C-2 R-3 R-3 R-1 R-3 R-3 R-3 R-1R-3 R-3 R-2 R-3 R-3 R-3R-3 R-3 R-3 R-1R-3 R-3 R-3 R-3 R-1 R-3 R-2R-2 R-3 R-3 R-1 R-3 R-3 R-3 R-3 R-3 R-3R-3 R-3 R-1R-3R-3 R-3 R-1R-3 R-1R-3 R-1C-2 R-1C-2 R-1R-1R-1R-1R-3 R-3 R-1 R-1 R-3R-3 R-1 R-1 R-3 R- 1 R-1R-2BR-2BR-2R-2BR-2BC-3 R-2BR-2BR-2 R-2 R-2BR-1R-2 R-2 R-1R-2BR-2BR-2B R-3R-3 R-3 R-2BR-2BR-2BR-2BR-2BR-2BR-2BR-1 R-2BR-2B R-1 R- 2 R-2 R-1 R-1R-1 R-1 R-1SPA-5R-2R-1R-2BR-1R-1SPA-5SPA-5 R-2BR-2B R-3R-3 R-1SPA-8C-3R- 2R- 2 R-1R-1 R-3 R-1 R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1 R-3 R-1 R-1R-1 SPA-2SPA-2C-3R-1 C- 3C-1 R-1R-2R-2R-2R-2 R-2 R-3 R-3R-1R-3R-1 R-2 C-1R-1R-1 R - 1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1R-1R-1 R-1 R-1 R-1 R-1 R-1 R-1R-2 R-1 R-1 R-3R-3 R-3R-3 R-1 R-1 R-1 R-1 R-2 R-1 R-1 R-1 R-1 R-3R-3R-1 R-1 R-1 R-1 R-1 SPA-11R-1R-1R-1 R-1 R-1 R-1R-1R-1 R-1 R-1R-1 R-1 R-1R-1R-1R-1R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1C-2R-1R-2 R-1 R-1R-1R-3R-1 R-1 R-1 R-3 R-1 R-1R-3R-3 SPA-7 R-1 R-P R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1 R-1 R-1R-1R-1 R-2 R-1R-1 R-PR-1R-P R-1R-1R-2 R-1 R-P R-1 R-P R-3R-P R-1R-2BR-1 R-1R-2BC-3R-2BR-2BR-PR-2BR-3R-2BR-1R-2 R-PR-2BR-2R-1R-1R-1R-2BR-2BR-1R-1R-1R-1R-P R-2R-1R-2BR-2BR-1R-1R-1R-2BR-2BR-2R-1R-2BR-2BR-2BR-2BR-2BR-1R-2BR-1R-1R-1C-3R-1 R-1R-1R-2R-1R-1R-1R-1R-1R-1R-2R-1R-1R-1R-1OSR-1R-1R-1R-2R-1 R-1 R-3 R-1SPA-11R-1R-1R-1R-1R-1R-2R-1R-1R-2 R - 2 B R-2R-1R-1C-3 R-1R-1R-1 R-3R-3R-3R-3R-2BR-2BR-2BR-2BR- 2 R-2BR-1R-1R-2BR-2BR-2BR-2BR-2R-2R-2R-2BR-1R-1 R - 1R-1R-1R-2BR-1R-2BR-2BR-2BR-1R-2BR-2BR-2BR-2R-2BR-2B R-1 R-1R-1R-2R-2 C-3R-1R-1 R-1 R-1 R-1 R-2R-2 R-1 R-2 R-1R-1R-1R- 2R-2 R-1R-1R-1 R-1R-1 R-3 OSR-1R-1R-1R-1R-1R-1C-2R-1R- 1 R-1R-1R-1R-1R-1R-1R-1R-1C-3R-1R-1R- 2 R-1R- 1 R-1R-3R-1 R-1 R-1 R - 1 R-1R-1R-1 R-1 R-1R-1 R-2 R-2 R-2 R-1R-1R-3 R-1R-1 R-3 R-1R-1R-1 R-3 R-1R-1 R-1R-1 R-2 R-1R-1R-1R-1R-1R-1R-1R-1R-1 R-2 R-3 R-2 R-2R-1R-1 R-1 R-1 R-1R-1R-1 R-1 R-1R-2 R-2R-1 R-1R-1R-1R-1R-1R-3 R-1 R-1R-1R-1R-1 R- 2 R-1R-1 R-1R-1R-1R-1R-2 R-2 R- 1 R-3 R-1R-1 R-1 R-1R-3 R-3 R- 2 R - 2 R-1 R-1 R-1 R-1 C - 1 R-1 R-1 R-1R- 2 B C-2 R-1 R-1 R-1R-1C-1 R-1 R-1R-2BR-2BR-2BR-1 R-2BR-2BR-2BR-1R-2BR-1 SPA-7R-1R-1C-3 R-1 R-1 R-1C-3R-1R-1R-1 R-3R-3 R-3 R-3 R-1R-1R-1R- 1 R-1 R-1R-1SPA-7 R-3R-1R-1R-1R-3 R-1R-1R-1R-1R-3 R-1SPA-7R- 1 R-1 R-1 R-1R-1R-3 R-1 R-1R-1R-3R-1 R-3 R-1 R-3 R-3R-3 SPA-11 R-3R-3 R-3 R-3R-1R-1R-1R-1SPA-7 R-3 R-3 R-3R-1R-1 R-1 R-2B R-1R-1R-2R-1M-1R-2BR-2BR-1 R-1 SPA-7 R-1 C- 3 C-2R - 2R-1R-1R-2 R-1R-1R-1SPA-2R-2BR-2BR-1R-1R-1R-1R-1R-1R-1R-2BR-1 R-2BR-2BR-2BR-1 R-2BR-2BR-2B R-3 R-1 R-2BR-2BR-2BR-1R-1R-2 R-1R-2BR-2BR-2BR-2B R-2 R-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-1R-2BR-1R-1 R-1 R-1R-1R-1R-2 R-1R-2BR-2BR-1 R-1 R-1 R-2 R-PR-PR-2R-2R-1 R-1 R-1SPA-2 R-1 R-1 R-1R-1R-1 R-2BR-2BR- 1 R-1R-2B R-1R-1R-1 R-1 R-3 R-3 R-3R-3 R-3 R-1 R-2 R-1 R-3R-1R-2R-1 R- 1 R-1 R-2 R-3 R-2 R-2 R-1R-1R-2BR-1 R-1 OSR-1 R-1 R-2 R-1R- 2 R-2 R-3R-2 R-2 R-2C- 1 R-2 R-3 R-3 R-3 R-3 R-3SPA-10 R-3 R-1 SPA-8 R-1 R- 1 R-1SPA-10R-1R-1R-2B R-1R- 2 B R- 2 B R-2BR-2BR-1R-1 R-2BR-2B R-2 R-1R- 1 R-2BR-3R-2R-1R-3 R-2BR-2B R-2R-1R-1R-3R-1 R-1 R-1R-1R- 1 R-P R-2B SPA-7R-3M-1 R-2BR-1R-1R-3 R-1 R-3 R-1 SPA-7 R-1R-1R-2BR-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-2R-1R-2 R-3R-1R-3R-3 R-1R-1R-1 R-2 C-3R-1R-1R-2R-1 R-1R-1R-1R-3 C-2R-2R-2R-1 C-3 R-1R-1R-3 R-1 R-1 R-1R-2 R-2 R-1 R-2 R-2 R-2 R-1 R-1 R-1R-2R-1R-2B R-1 R-1R-1R-2 R-2 R-2 R-3 R-2 R-2 R-3 R-2 SPA-7 R-2B R-1 R-1 R-1 R-3 SPA-7 R-3 R-3 R-3 R-2 R-3R-3 R-3 R-3 SPA-8R-1R-1 R-P R-3 R-2 R-PR-1SPA-8 R-3 R-1 R-2R-3R- 1 R- 1 R-1R-1R-3 R-1 R-3 R-3 R-1 R-2BR-2B R-3 R-2 R-1R-2 C-3R-1R-2R-1R-2 R-2 BR-1R-1 R-3R-3 R-2BR-2B R-2B R-3R-3 R-3 R-1 R-1 R-1R- 2B R-3R-2 R-1 R-2B R-3R-3 R-3 R-3R-3 R-3R-3R-2 R-1 R-1 R-2 R - 1 R-2 R-1 R-3R-3 R-3R-3 R-3 R-1 R-1 R-1 R-3R-3C-1R-1 R-3 R-3 R-1 R-3R-3 R-1 R-1 R-2B R-2 R-1 R-2B R-2B R-1R-P R-2BR-2B R-2BR-2B R-2BR-2B R-1 R-2B R-1 R-1 R-2 R-2B R-2BR-2R-2 R-3 R-2B C-3 R-1 R-1 R-1 R-1 R-3R-3 R-3 C-1 R-2 R-1 R-1C-2 R-2B R-2 R-1 R-3 R-2 SPA-8 R-3 SPA-11R-3R-3 R-1R-2 R-3 R-1 R-2 R-2 R-2 R-3R-1AR-1R-1R-1R-1R-1R-1R-1R-1 R-2 R-1R-1R-3R-1R-1 R-1 R- 1C-3C-1 R-2 R-1 R-1R-2B R-3R-2BSPA-2 R-3 R-3R-3 R-3 R-3 R-1 R-3 R-3 R-1 R-1R-3 R-3R-3R-2 R-3R-1R-2B R-3 C-3R-3 R-3 R-1 R-1 R-3 R-1R-3 R-2 R-2 R-1 R-3 R-2R-2 R-1 R-1 R-1 R-3 R-3R-3 R-3 R-1 R-1R-3 R-3R-3 C-2 R-1 R-3R-3 R-3 R-3 R-2 R-3 R-3 R-3 R-1 R-1R-1R-3 R-3 R-3 R-3 R-3R-3 R-2 R-3 R-3R-3 R-3 R-3 R-1R-1R-3 R-3 R-3R-3 R-3 R-3R-3 R-3R-1 R-1 R-1R-1 R-1 R-2 R-2 R-1R-2 R-1R-1R- 1 R-1 R-1R-2 R-1 R-3R-3 R-3 R-1R-1 R-1 R-3 R-3R-3 R-1R-2 R-2 R-1 R-3 R-1 R-1R-1 R-3 R-3 R-3R-3 R-3 R- 1 R-3 R-3 R-3R-3 R-1R-1R-1R-3 R-3R-3 R-1 R-3 R-3 R-3R-3 R-1R-1 R-1 R-1 R-3 R-1 R-3R-3 R-2 R-3 R-3 R-3 R-1 R-3 R-1 R-3 R-2 R-1 R-3R-3 R-1 R-3R-3 R-3R-3 R-3R-3 R-3R-3 R-3R-3 R-1 C-3 R-3 R-3 R-3R-1 R-3R-3 R-1 R-3R-3 R-2 R-1 R-3 R-2 R-1 R-3 R-3 R-3 R-3 R-3 R- 1 R-3R-3 R-3R-3 R-3 R-3R-3 R-3 R-3 C-3 R-2 R-1 R-3R-1R-1 R-3R-3 R-1 R-1R-1R-2 R-2 C-3 R-2 R-3R-3 R- 1 R-1 R-1 R-2B R-1 R-1 R-3 R-2 R-2R- 1 R-1 R-3 R-1 R-3 R-1 R-2BR-2B R - 1 R-2 R-3 R-2 R-1 R-2B R-3 R-1R-1 R-1 R - 2 R-2 SPA-7 R-1 C-3R-2 C - 3 R-2 R-1 SPA-2 R-1 R-1 R-1 R-1 R- 1 R-1 C-2 R-1 R-1R-3 R-1 R-1 R-1 R-1 C-2 R- 1 SPA-7R-3R-1 R-1 C-2 R-3R-3R-1R- 2 R-3 R-3 R-3R-3 R-3R-3 R-3 C-2R-3R-3 R-3 R-3 R-3 R-1 R-3R-3 R-1 R-3R-3 R-3 R-3R-3 R-3R-2 R-3 R-3R-3 R-3R-3 R-3R-3 R-3 R-3 R-3 C-3R-1R-3 R-1R-3 R-3 R-3R-3 R-3R-3 R-3 R-3 R-3 R-3R-3 R-2 R-3R-3 R-3 R-3R-3 R-3 R-3 R-3R-3 R-3 R-3R-3 C-1 R-3R-3R-3 R-1 R-3R-3C-2R-3 R-3 R-3R-3 R-1 R-1 R-3R-3 R-3R-3 R-3 R-1R-3 R-3R-1R-3R-1R-3 R-3 R-3R-3 R-1 R-1R-1 R-1 R-2C-1R-3R-3 R-2 R-1 R-2 R-1 R - 2B R-1 R-1 R-3C-1C-2R-3R-3R-3R-3 C-3R-2R-3R-3C-2C-2R-3C-2R- 1 C-3R-2R-3R-3C-2R-3C-2R-3C-2R-3R-3 R-1 R-3R-3R-3R-3R-3R-3R-3C-2C-2C-2R-3R-3R-3R-3C-2R-3R-2C-2R-3R-2C-2C-2C-2C-2C-2R-3C-2R-3R-3R-3C-2R-3R-3R-2C-2R-3R-3R-3R-2C-2C-2R-3R-2C-2R-3R-3C-2R-3C-2R-2C-2C-2R-3R-3C-2R-2R-3R-3R-2R-3R-3C-2R-2B R-3R-3C-2R-3R-3C-2R-2R-2R-3R-3C-2C-2R-2 R-2R-2 R-1 R-PR-PR-3R-3R-1 R-2 R-3R-3R-3C-2R-3C-2R- 2B R-3R-2R-3C-2R-3C-2R-1 R-3R-3 SPA-2 R-1 R-2 B R-3 R-1 R-1 R-2 R-3R-3 R- 1 R-1 R-1 M-1 M-1 R- 2 B R-1 R - 2B R-P R-1 M-1 R-1 R-2R-1R-1 M-1 M-1R-2 M-1 M-1R-2 R-2M-1R-1 R-1 SPA-7R- 1 R-3R-3 R-1 R-1 R-1 M-1R-2B C-3 R-1M-1 R-1M-1 R-3 R-1R-3 R-3 R-2 M-1 R - 2 R-3 R-2 R-1R-2 R-3 R-3 R-2 R-3 R-1R-3R-3 R-3 R-1R-1R-2B R-1 R-2 R-1 R-1R-2 R-1 R-2 R-2R-2 R-2R-2BR-2BR-1 R-3R-3 R-3 R-2R-2R-2 R-1R-3 R-3 R-3 R-3R-3 R-3R-3 R-3 R-3R-3 R-2R-3R-2B R-2B R-2 C-2R-1 R-2 R-1 C-2R-1R-1R-2BR-1 R-2BR-2 R-1 C- 2 R-1R-1 R-2R-2 R-1 R-3 R-2BR- 1 R-1 R-3R-3R-1C-2 R-1C-2 R-1 R-1 R-1R-1R- 1R-1 R-1 R-1 R-1R-3 R-1 R-1 R-2BSPA-7 R-1 R-1 R-1R-2 R-2 R-1R-3 R-1 R-1 R-1R-1 R-1 R- 1R- 1R-2 R-1 R-1R-1 C-2 R-1 R-2 R-1 R-1R-1R-1R-1R-1R-2 R-1R-1R-1R-1R-2 R-1 R-1 R-1R-1R-1 R-2 R-1R-1 R-1 R-1 R-1 R-1 C-2R-1 R-2 R-1R-1R-1 R-1R-1R-1 R-1 R-1 R-1 R-1 R-2BR-3R-3R-2BR-1R-PR-1 R-1 R-2 R-2 R-1 R-2BR-1R-1 C-3R-PR-PR-1R-2BR-1 R-PR-1 R-PR-PR-1R-1 R-1 R- 1 R-1 R-PR-P R-2 R-1 SPA-11R-2R-2BR-PR-PR-PR-PR-PR-2 R-PR-PR-PR-3 R-1R-2 R-2 R-1 R-1 R-1 R-1 R-1R-2 R-2 R-2 R-1 R-1C-3R-1R- 1 R-2 R-1 R-3R-3 R-1 R-3 R-1 R-1 R-1 R-1 R-1C-3R-1 C-3R-1SPA-7C-3R-1R-1 R-1 R-3 R-1 R-1 C-1R-2 R-1 R-2 R-1 R-1 R-3 R-2 R-1SPA-7 R-3R-2SPA-11R-2 R-3 R-1 M-1R- 2 R-1 R-3 R-3 R-2B R-2 R-2BR-2BR- 1 R-1 R-1 R - 1 R-1 R-2 R-1 R-1 R-2BR-2 R-3 R-3 R-1 R-1 R-3 R-1 R-1 SPA-7 C-1 R-1R-3 R-1 R-1 R-3R-2BR- 1 R-3 R-1R-2 R-1 R-2BR-2BR-1R-1 R-1 R-1 R-2 R-3 R-2BR-2BR-PR-3 R-1 R-2 R-3 R-1 R- 1 R-3 R-3 R-1 R-3 R-1 R-3 R-1R- 3 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-3 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-3 R-3R- 3 R-3 R-3 R-3 R-1 R-3 R-3 R-3 R-3 R-3 R-1 R-3 R-3 R-1 R-3 R-2BR-1 R-1 R-1 R-3 R-1 R-1 R-3 R-3R- 1 R-1 R-1 SPA-11R-3 R-3 R-1 R-1 R-1 R-1 R-1 R-3 R-1 R-1 R-1 R-1 R-1 R-1 R-1R- 3 R-1R-1R-2R-2 R-1 R-2C-3 R-1 R-2 C-1R- 1 R-1 R-1M-1 R-2R-2SPA-7 SPA-7R-2B SPA-7 R-3 M-1 R-2R-3 M-1 R-1R-1R-1R-1R-1R-2SPA-7R-1R-1R-1R-1R-1R-2R-3R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-2R-1R-2R-1R-2R-2R-1R- 1 R-2R-1R- 1 R-1 R-2 C-3R-1R-1C-3R-2 R-3R-2R- 1 R-2R-1 R-1 R-1R-1R-1R-2R-1R - 1 R-1R-1R-1R-1R-2R- 3 R-1R-1 R-3 R-1R-1R-1R-1R-1R-2R-1R-1C-3R-1 R-3 R-1R-2R-1R-1R-1R-1R-1C-3R-2R-1R-1R-1R- 1 A R-3 R-1R-1R-2R-3 R-1R-1R-1R-1R-1R-2R-1R-1 R-1R-1 SPA-7 R-1R-1R-1R-1R-1R-1R-3 R-1R-1R-1 R-1 R-3 R-1R-1R-1 R-3 R-3 R-1R-1R-1R-3 R-1R-1 R-1R-1R-1R-3 R-1R-1R-2R-2 R-1 R-1 R-1R-1R-1R- 1 R-3 R-3R-1R-1C-1C-1 R-2R-1R-1R-1R-1R-1C-3R-1R-3 R-1R-1R-2R-1R-1R-1C-3R-1R-1R-1R-1R-1 R-1 R-1R-1R-1C- 3 R-1R-1R-1R-3 R-1R-1R-1R-1R-1 R-1R-2 R-1R-1R-1 R-1R-1R-1R-1R-2R-3 R-1 R-1R - 1R-1 R-1R-2 R-1R-1 R-1R-1R-1R-1 R-1 R-1R-2R-3 R-1R-1 R-1R-2R-1R-3R-1C-2R-1R-1R-1 R-1 R-1R- 1 R-3 R-1R- 3 R-1R-1R-1R-3R-1R-1R-1R-1R-2B R-2 R-3R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-2 R-1R-1R-1R-1R-1 R-1 R-1R-1R-3 R-3R-1R-1R-1R-1R-2R-2R-1R-1R-1R-1R-3R-1R-3 R-1R- 1 R-3 R-3 C-3R-2BR-1R-1R-1R-1R-1R-1R-3 R-1 R-1C-2R-3 R-1R-3 R-3 R-1R-1R-1R-1R-2R-1R-3 R-1R-3 R-3 R-1R-1R-1R-3 R-3 R-1 R-3 R-1R-3 C- 3 R-2 R-1R-1R-3R-1R-1R-1R-1R-1R-1R-1R-1 R-1R-1R-1R-1R-2BR-1R-1R-1R-1R-1R-2BR- 2 R-1R-1 R-1R-1R-1 R-1R- 1 SPA-7 R-1R-1 R-1R-2R-1R-1 R-2 SPA-7 R-1R-1R-2R-1R-1R- 2 R-1 R-1 C-1R-2R- 2R-2R- 2 R- 2 R-1R-2R-1R-1 SPA-7R-2R-3R-3R-2R-1R-1R-2R- 2 R-2R- 2R- 2 R-3R-2BR-3 R-1R-1R- 2 R-3R-1R-3R- 3 R-2R- 3 R- 2 R-2R-1R- 1R-3R- 2 R-1R-3C-1 SPA-7R-2R- 3 R- 1R-3 R-1R- 2 R-2 R-2 R-2R-2R-1R-3R-1R-1 R-1 R- 2 R- 2R-2R-2R- 2 R-2R- 3R- 3 R-2R- 2 R- 2 SPA-7 R-1R-2R-2R-2R-3R-3R- 2 R-2 R-2R-3R- 3 R- 2 R-2R-2R-2R-3R- 3 R-2R-2R-2R-2R- 3 R-2 R-1R- 2R-2 R-2R-2R-2BR-1R-2R-2BR- 2 R- 2 R-2R-1R- 2 R-3R- 2R- 2 C- 1 R-1R-2R- 2 R-3R- 3 R-2 R- 2B R-2R- 2 R-3 R-1R-3R- 2 R-1 R-2R-2 R-1R- 3 R- 2 R-2 R-1 C-2 R-2R-3R- 1 R-1 R-1 R- 3 R-2R-3 R-PR- 2R-2 R-2 R-1 R-2 R-3R-1SPA-11SPA-7 R-PR-2R-2R- 2 R-2R-3R-2R-2R-2R- 2 R- 2 R-2R-2R- 2 R-2R- 2 R-2R-2R-3R- 2 R-3R- 2 R- 2 R- 2 R-2R-1R-2R- 3 R-2R-2R- 2 R-1R- 2 R- 2 R- 2 R-1R-2R-2R- 2 R-2R- 2 R-2R-2R- 2R- 3 R-2R- 3 R-2R-2R-2R- 3 R-3 C-1R- 2 R-3 C-1R-2R-2R- 2 R- 2 R- 2R-2R-2R-3R- 2 R- 1R- 2 R-1 R-2 R- 2 R-3 R-2R- 2 R-1R-2 R-2 R-2R-2R-1 R-3R- 2 R-3R-2R- 2 R-1R-2 C-1 R-3 R-2R- 1 R-3R-2R- 2 R-3R-2 R-3 R- 2 R-2R- 2 R-2R-2R- 2 R-3 R-3 R-2R- 2 R-2 R-2 R-2R-2R- 2 R- 1R- 2 R-2R- 1R-2 SPA-7R-2R-2R- 2 R-2R- 2 R-3R-2R- 2 R-2R-2 R-2 R-2 C-1R-2R-2R- 2R- 2 R-2R- 2 R- 2 R-2R-2R-2R-2R- 2 R-2 R-1R-3R-2R-2 R-3 R-2R-1 R-3 R-3R-2R- 2 R- 1R- 2 C-1R-2R-2 R-1 R-1 R-3 R-2 R-3 R-2 R-3R-2R-1 R-2 R-3R-2R-2R-1R-2 R-2 R-2 R-2 R-3R-2R- 2 R-3 R-2 R-3R-1R-2R-2R- 2 R- 1 R-2 R-3 R- 2 R- 3 R-2R-2 R-1R-2R-2R- 2 R-2R-2R- 2R-2R- 2 R-2R-1R- 2 R- 2R- 2 R- 2 R-2R- 2 R-2R- 2 R-2 R-2 R-2R-2R- 2 R-2 R-2 R-2R- 2 R-2R- 2 R-2 R-3R- 2R-2R- 2 R-3R-2 R-3 C-2 R-1R- 2 R- 2 R-2 R-3R- 2 R-3 R-3R-2 R-3R-3R-2 C-1 R-3 R-2 R-2 R-3 R-2 R-3R-3R- 1 R-1 R-2 R-3R- 1R- 2 R-3 R-1 R-1 R-2R- 2 R-2 R-3 R-2 R-3R-2R-2R-2 R-1 R-1R-2R-2 R-3 R-3R- 2 R-2R- 2 R-3 R-3 R-2R- 2 R-2 R-1R-2R-2R- 2 R-2 R-3 R-3 R-2 R-3 R-3 R-3 R-3 R-3 R-3 R-3 R-3 R-2 R-3 R-1R-2R-3 R-1 R-1 R-3 R-3 R-3 R-3 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-3 R-1 R-1 C-3R-1C-3R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1R-2 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 R-1 C-3 R-1 R-1 R-2 R-1 R-1 M-1 R-1R-2 R-2 M-1 M-1 R-1 R-1 R-3 R-1 R-2 R-2R-2C-3R-1 R-1 R-1 R-2 R-3 R-1 R-2B R-2BR-1R- 1 C-3R-1R-2 R-1R-2 R-1R-1 R-2 R-3 R-2 C-3 R-1 R-3 R-3 R-3 R-2 R-2 R-1 R-3 R-3 R-3 R-1R-1 R-3 R-3 R-2 R-1R-3 R-3 R-1R-3 R-1R-2SPA-7 R-1 R-2 R- 1 R-PR-1R-2R-1SPA-7R-1R-1R-1R-1R-1R-1 R-2R-1R-1SPA-8 R-1R-3 R-1R-1R-3R-2B R-1 C-3R-3 R-1R-1R-2B R-1R-1 R-1 R-1 R-2 R-1R-1R-1R-1R-1R-1R-1 R-1 R-1R-1R-1 R-1 R-1R-1R-1R-2 R-1R-1R-1R-2R-2R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R-1R- 2 R- 3 R-1R-2R-1R- 2 R-3R-3R-1R-3R-2R-1R-1R-1R- 2 R- 3 R-1R-1 R-2B R-1R-1R-2 R-2B R-1R-1R-1 R-1 R-1R-1R-1R- 2 R-1R-1 R-1R-1R-1R-3 R-1 R-1R-1R-1R-1R-1R-1R- 1 R-1R-2 R-3 R-1R-1R-3R-1R-1R-1R-2 C-3R-2R-1R-1 R-1R-1R- 2 R-1R-1R-1 R-1R-2BR-2R-2R-1R-1 R-1R-1R-1R-2R-1R-1R-PR-3R-1R-3C-3R-3R-2R-2BR-1R-1R-1R-3R-2BR-1R-2B R-2 R-1R-2 R-1R-3R-1R-3R-1R-2BR-3R-1 R-1 R-3 R-2R- 2B R-3 R-1R-1 R-1R-2 R-1R-1SPA-11 R-3 R-1R-1 R-2B R-3 R-2 R-1R-1 SPA-8 R-1 R-1R-2 R-2 R-2 R-1R-1 A R-2 SPA-8 R-2 R-3R-PC-3SPA-9R-2BSPA-7R-1 R-2 SPA - 9 R-1R-1 C-1R-1R-1R-1C-2 R-3R- 2 R-2 R-3 R-1R-1 M-1 R-2 R- 1 SPA-7 R-1R-1R-1R-1R-1R-1 R-1 R-1R-1R- 1 R-1R-1R- 1 R-1R-3R-1R-3 R-1R- 1R-1R- 1 R-1R-1R- 1R-1R-1R- 1 R-1R-1R-1R- 1 R- 1 R-1R- 1 R-1R-1R- 1 R-1R-1R-1R-1R-1R- 1 R-1R-1 R-1 R- 1 R- 3 R-1R- 1 R- 3 R- 1 R- 1 R- 1 R-1R- 1 R- 1 R- 1R- 1 R- 1 R- 1 R-1R- 1 R- 1 R- 1R- 1 R-1R-1R-1R- 1 R-1R-1R- 1R- 1 R- 1 R-1R-1R-1R-1R-1R- 1 R- 1 R-1R- 1 R-1R-1R- 1C-1R-3R-1R-1R-3R- 3 R- 1 R-1R-1R- 1R-1R-1R- 1R- 1 R- 1R- 1 R- 1R-1R- 1 R-1R-1R-1R- 1R-1R-1R- 1 R-1R-1R- 1 R- 1R-1R- 1 R-1R- 1 R-1R-3R- 1 R-3R-1R-3R-1R-1R- 1 R- 1 R-1R-3R-1R-1R- 1 R-1R-1SPA-11R- 1 R-1R-1R-1R-1R-1R- 1 R- 1R-1R-1R- 3 R-1R-1R-1R-1R-1R- 1 R-1R-1R- 1 R- 3 R-1R-1R-1R- 1 R- 1R-1R-1 SPA-7R-1 R-2B R-1 R-3SPA-7SPA- 7 SPA-7 R-2B R-2BR-1R-2 SPA-8 M-1R-1R-1R-1R-1 R-2 R-3SPA-11C-3R-1AR-1R-2R-2R-3R-2BR-2BR-2BR-2BR-2BR-2BSPA-2R-2B R-1 SPA-2R-2BR-2BR-2BR-2BR-2BR-PR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2B R-3R-2BR-2BR-2BR-2BR-1R-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2B R-2 R-2BR-2BR-2BR-2BR-2BR-2BR-2BR-2BR-1AR-2BR-2BR-2BR-2BR-1 R-3R-1 R-2 R-2 R-1R-2BR-1 SPA-7 R-1 R-3 R-1 R-1 R-1 R-1 R-3 R-1 R-3 R-3R-1 R-3 R-1 R-1 R-1 R-3 R-1 R-1 R-3R-2 R-1R-1 R-1 R-1 R-1 R-1 R-1 R-2BR-2BR-2 R-1OSSPA-8 R-1 R-3R-2BSPA-7C-3C-1 R-1R-1 R-3 C-3R-1R-1R- 2 R-3 R-1 R-1 R-1 R-1R-2BR-1R-1R-1R-1R-3R-1R-1 R-3R-1R-1R-1R-1R-2 R-1 R-3 R-1 R-3R-2B R-3R-3 R-P R-1 SPA-9 R-1R-P R-2 R-1 R-3 R-P R-P R-1R-1 R-2B R-2 R-3 R- 1 R-2 R-2BR-2BR-2BC-3 R-2BR-2BR-1R-2B R-2 SPA-9 R-3 R-2BR-2BSPA-7 R-1 R-1 R-1 R-2 R-3 R-2 R-2R-3 R-3 R-2R-2SPA-2 R - 3 SPA-9 R-1R-1 R-3 R-3 R-3 SPA-11R-2 R-1 R-2B R-1 R-3 R- 1 R- 2B C-3 R - 1 C-3R-2B R-3 R-2 R-1 R-1R-3 R-2B SPA - 9SPA - 9 R-2 R-2B C-2SPA-11R- 1 R-3 R-3 SPA-7R-2B R-2BR-2B R-2B R-2B R-2BR-2B R-2B R-2B R-2B R-2B R-2B R-2B R-2B R-2B R-2B R-2B R-2BR-2BR-2B R-3 R-2B R-2B SPA-2 SPA-7 R-3 SPA-9 SPA-7R-2 R-2B SPA-7R-3 SPA-7SPA-7 R-2B R-2B SPA-7R-2B R-2B SPA-7 R-2B R-2B R-3 R-2B R-3R-1R-1 R-3R-3 R-1 R-3 R-2B R-1R-3 SPA-8 R-3SPA-11SPA-11SPA-8R-3R-2 R-2B SPA-8R-2 R-2 C-3 R-2 R-3 R-1R-3R-2B R-2 C-3C-3R-1R-3 R-2B R-2B R-1 R-3 R-2B R-3 R-1 R-3 R-3 SPA-8 SPA-11 SPA-8 R-1 R-3R-1 R-2 SPA-11SPA-11SPA-11SPA-11SPA-11SPA-11SPA-11 R-2 R-2B R-3 R-2B R-3 R-1 R-2B R-2B R-3 R-3R-2R-1 R-2B R-2 R-1 R-2 R-3 R-2 R-3 R-3 R-3 R-3R-3 R-3 R-3 R-3 R-3 R-3R- 1 R-2 R-3R-2R-3 R-3 R-3 R-3R-3 R-3R-3R-3 R-3 R-3R-3 R-3R-3R-1R-1 R-3 R-3 R-3R-3 R-3 R-3 R-3R-3R-3 R-3 SPA-8R-3 R-3 R-3 R-P R-3R-1 R-2R-2R- 3 R-2BR-3R-2BR-2R-2 C-2 R-2BR-2 C-2 R-3 C-3R-2BR-3 R-3R-2 C- 3 R-2 C- 3 R-2R- 1 R-3 R-3 R-2 R- 1 R-2 R-1R-2 R-3 R-3 R-3R-3R-3 R-3R-3R-2BR-3 R-2 R-1R-3 R-3 R- 1 R-2 R-2 R-3R-2 R-3 R- 1 R-3R-1AR - 1 R-3 R-2R-2R-2 R-2B R-2 R-3 R-3 R-3R-3 R-3 R-3 R-3 R-2 R- 2 R-2R-3R-3 R-3 R-2 R-2 R-1 R-1 R-2 R-3 R-1 R-P C - 2 R-3 R-2R-1 SPA-7 R-2 R-3 R-2R-1R-2SPA-11R-2 R- 2R-3 R-3R- 2 R-1 R-1 R-3R-1 R-3 R-3 SPA-11R-3 R-3 R-3 R-1 R-3 R-3R-2 R-3 R-1 R-3 R-3 R-1R- 2 R-3R-2R-3R-3R-1R-3R- 2 R- 2 R-2 R-3 R-3 R- 2R-2R- 1 R-2R- 2 R-2 R-2 R-2R-2 R-3 R-2R-2 R-2R-2R-2R-2R-2 R-2 R-2 R-2 R-2 R-2R-2R-2R-2 R-3R-2 R-1 R-1C-2R-1 R-3 R-2C-3R-3 R-2R-2R-2R-2C-3R-3 C-3R-3R-1R-2 R-3 R-2R-2BR-1R- 1 R- 1 R-2BR-2 R-2R-2R-2 R-2 R-2 R-2R-2R-2R-2R-2 R-2 R-2 R-2 R-2R-3R-2 R-2 R-2R-3 R-2R-3R-2 R-2 R-2R-2R-2 R-3 R-2R-2 R-2R-2R-3 R-2R-2 R-2 R-3 R-3R-2 R-2R-2R-2 R-2 C - 2R- 1 R-2R-2 R-2R-2R-2R-2R-2B R - 3 R-2B R-3 R-3 R-2B R-3 R-3 R-3 R-1 R-3/OS-O R-3/OS-O M-1 R-3/OS-O R-1A R-2B/OS-O R-3/OS-O R-3/OS-O R-2B/OS-O R-3/OS-O R-2B/OS-O R-2B/OS-O R-2B/OS-O R-2B/OS-O R-2B/OS-O R-2B/OS-O R-2B/OS-O R-2B/OS-O R-2B/OS-O R-2B/OS-O ® Zoning Map City of Hermosa Beach Last updated March 08, 2011 Unclass UNCLASSIFIED (SCHOOL DISTRICT) ZONING DESIGNATIONS R-1 ONE FAMILY RESIDENTIAL R-1A LIMITED ONE-FAMILY RESIDENTIAL R-2 TWO-FAMILY RESIDENTIAL R-2B LIMITED MULTIPLE FAMILY RESIDENTIAL R-2B/OS-O LIMITED MULTIPLE FAMILY OPEN SPACE OVERLAY R-3 MULTIPLE FAMILY RESIDENTIAL R-3/OS-O MULTIPLE FAMILY OPEN SPACE OVERLAY R-P RESIDENTIAL-PROFESSIONAL RPD RESIDENTIAL PLANNED DEVELOPMENT R-3PD MULTIPLE FAMILY PLANNED DEVELOPMENT C-1 NEIGHBORHOOD COMMERCIAL C-2 RESTRICTED COMMERCIAL C-3 GENERAL COMMERCIAL M-1 LIGHT MANUFACTURING OS OPEN SPACE OS-1 RESTRICTED OPEN SPACE OS-2 RESTRICTED OPEN SPACE MHP MOBILE HOME PARK SPA SPECIFIC PLAN AREA (RESIDENTIAL USES) SPA SPECIFIC PLAN AREA (COMMERCIAL USES) OTHER DESIGNATIONS COASTAL ZONE BOUNDARY COASTAL ZONE APPEALABLE AREA (WEST OF LINE) DOWNTOWN DISTRICT WALK STREETS #FRONT YARD SETBACKS 1 VALLEY PARK 2 CLARK STADIUM 3 COMMUNITY/CIVIC CENTER 4 EDITH RODAWAY FRIENDSHIP PARK 5 SEA VIEW PARK 6 FORT LOTS-OF-FUN/PROSPECT SCHOOL 7 MOONDUST PARK 8 GREENWOOD PARK 9 BI-CENTENNIAL PARK KAY-ETOW PARK10 SHAFFER PARK11 4TH & PROSPECT PARK12 8TH & VALLEY PARK13 SCOUT PARK14 ARDMORE PARK15 GREENBELT16 BEACH/STRAND/BIKE PATH17 NOBLE PARK18 SOUTH PARK19 RECREATIONAL VEHICLE PARK20 CITY YARD21 ATTACHMENT 2-M 2-M Palm DrValley DrThe StrandManhattan AveArdmore AveBayview DrProspect AvePacific Coast HwyMonterey BlvdBeach Dr7th St 8th Pl 5th St 25th St 10th St 6th St Pier Ave 2nd St 14th StHermosa Ave 30th St Harpe r Ave 31st St 16th St Gou l d A v e 29th St 31st Pl Sunset Dr28th St Ocean Dr30th Pl Alley 32nd Pl 33rd St 17th St 33rd Pl 29th Ct 1st St 28th Ct 3rd St 7th PlLoma DrAviation Blvd8th St 24th Pl 9th St 27th St 1st Pl 4th St Herondo StOzone C t Longfellow Av e 24th St Artesia Blvd 21st St 13th St 26th St 15th St 19th St Bonnie Brae StOwosso Ave34th St Rhodes StHillcrest Dr11th St Hollowell AveIng les ide D r 20th St Bard StGentry StMyr t le Ave Oak St 20th Pl Gou l d T e r Reynolds LnPower St27th Ct 1st CtPark Ave34th Pl 22nd St Hil l S t Tennyson Pl17th Ct 18th St 18th Ct 16th Ct Porter Ln 15th PlAva Ave11th Pl 19th Ct 14th Ct Circ l e D r 13th Ct Lyndon St Cypress Ave9th Ct Corona StValley Park Ave11th Ct 8th Ct 15th Ct 12th Ct 20th Ct Hopkins StPier Plaza 10th Ct 7th Ct G o l d e n A v e 35th St Silve r S t 6th Ct Culper CtPine StMeyer Ct21st Ct 5th Ct Springfield AveMassey AveNeptune 4th Ct 23rd St Campana StOcean View Ave3rd Ct 35th Pl Amby PlM o r n i n g s i d e D r Aubrey Park CtMarlita Pl Greenwich VillageBorden AveHermosa View DrMira StVista Dr 21st St 24th St 20th St 3rd St 13th St Harper Ave1st StCypress Ave21st St 21st St 24th St 30th St 9th St 5th St 7th St 35th St 4th St Oak St 4th St 3rd St 1st Pl 10th StBeach Dr1st St Longfellow Ave 19th St 3rd St 25th St 11th St Ardmore Ave 34th St 20th St 6th St 8th St 15th St Morn ings ide D r 11th St 4th StBeach Dr16th St Power St24th Pl 18th St Alley2nd St 18th St Loma DrAlley7th St 17th St 14th St 10th St 11th St 7th St Bard StHermosa AveHarpe r Ave 1st StLoma Dr24th St 4th St 11th StAll e y Alley 24th St 9th St 19th St 6th St 11th Pl ± City of Hermosa Beach ATTACHMENT 2-N MAP OF NARROW STREETS AND ALLEYS 2 - N ATTACHMENT 2-O March 13, 2012 2-O City of Hermosa Beach ATTACHMENT 2-O March 13, 2012 2-O City of Hermosa Beach ATTACHMENT 2-O March 13, 2012 2-O City of Hermosa Beach ATTACHMENT 2-O March 13, 2012 2-O City of Hermosa Beach ATTACHMENT 2-O March 13, 2012 2-O City of Hermosa Beach ATTACHMENT 2-O March 13, 2012 2-O City of Hermosa Beach ATTACHMENT 2-O March 13, 2012 2-O City of Hermosa Beach ATTACHMENT 2-O March 13, 2012 2-O City of Hermosa Beach ATTACHMENT 2-O March 13, 2012 2-O City of Hermosa Beach ATTACHMENT 2 3/13/2012 2-P City of Hermosa Beach \ Collection Rate "Porter Service" Cost AB939 Fees Monthly Total Per Customer CITY OF HERMOSA BEACH 1309 HERMOSA AVE City Services - 0.00%-$ -$ -$ -$ CITIBANK WEST FSB 81 PIER AVE Citibank 3.00 0.70%24.37$ 59.58$ 1.28$ 85.22$ SILVIOS BRAZILIAN BBQ 20 PIER AVE Brazilian Steakhou 6.00 1.40%48.73$ 119.15$ 2.55$ 170.43$ DOWNTOWN BAKERY 37 PIER AVE Bakeries 6.00 1.40%48.73$ 119.15$ 2.55$ 170.43$ BEACH SHOP 49 PIER AVE Business 2.00 0.47%16.24$ 39.72$ 0.85$ 56.81$ HERMOSA CYCLERY INC 20 13TH ST Bicycle Shop 3.00 0.70%24.37$ 59.58$ 1.28$ 85.22$ LAPPERTS HB3 CREAMS & SNACK 29 PIER AVE Ice Cream Shop 3.00 0.70%24.37$ 59.58$ 1.28$ 85.22$ WEST BAY APTS 30 13TH ST Small Apartments 2.00 0.47%16.24$ 39.72$ 0.85$ 56.81$ SPYDER SURF 65 PIER AVE Surf Shop 4.00 0.93%32.49$ 79.43$ 1.70$ 113.62$ CANTINA REAL 19 PIER AVE Bars 15.00 3.50%121.83$ 297.88$ 6.38$ 426.08$ TREASURE CHEST 50 PIER AVE Retail 3.00 0.70%24.37$ 59.58$ 1.28$ 85.22$ ROBERT'S LIQUOR 74 PIER AVE Liquor Stores 4.00 0.93%32.49$ 79.43$ 1.70$ 113.62$ MERMAID RESTAURANT 11 PIER AVE Coffee Shops 12.00 2.80%97.46$ 238.30$ 5.10$ 340.87$ LIGHT HOUSE CAFE 30 PIER AVE Small Restaurants 21.00 4.91%170.56$ 417.03$ 8.93$ 596.52$ PIER SIDE PROP LLC 53 PIER AVE Business 3.00 0.70%24.37$ 59.58$ 1.28$ 85.22$ FAT FACE FENNER'S FISHACK 53 PIER AVE Fish Restaurant 21.00 4.91%170.56$ 417.03$ 8.93$ 596.52$ THE POOP DECK 1272 THE STRAND Small Restaurants 3.00 0.70%24.37$ 59.58$ 1.28$ 85.22$ HENNESSEY'S TAVERN INC 8 PIER AVE Restaurants 56.00 13.08%454.82$ 1,112.07$ 23.81$ 1,590.71$ STREET RETAIL WEST 1221 HERMOSA AVE Clothing Store 3.00 0.70%24.37$ 59.58$ 1.28$ 85.22$ BEACH MARKET INC 1325 HERMOSA AVE Grocery Store 9.00 2.10%73.10$ 178.73$ 3.83$ 255.65$ GOOD STUFF ON THE STRAND 1286 THE STRAND Small Restaurants 21.00 4.91%170.56$ 417.03$ 8.93$ 596.52$ MICHAEL ROSSI 26 PIER AVE Business 3.00 0.70%24.37$ 59.58$ 1.28$ 85.22$ BREWSKIS MEDITERRANEO 73 PIER AVE Brewery 9.00 2.10%73.10$ 178.73$ 3.83$ 255.65$ BANK OF AMERICA 90 PIER AVE Bank of America 6.00 1.40%48.73$ 119.15$ 2.55$ 170.43$ DRAGON WATERMANS 22 PIER AVE Club 21.00 4.91%170.56$ 417.03$ 8.93$ 596.52$ 1303 HERMOSA AVENUE LLC 1303 HERMOSA AVE Business 3.00 0.70%24.37$ 59.58$ 1.28$ 85.22$ SCOTTY'S 1100 THE STRAND Restaurants 28.00 6.54%227.41$ 556.04$ 11.91$ 795.35$ SEA SPRITE MOTEL 1016 THE STRAND Motels 6.00 1.40%48.73$ 119.15$ 2.55$ 170.43$ PATRICK MALLOY'S 50 PIER AVE Bars 42.00 9.81%341.12$ 834.05$ 17.86$ 1,193.03$ SANGRIA 68 PIER AVE Small Restaurants 21.00 4.91%170.56$ 417.03$ 8.93$ 596.52$ PIER SURF 21 PIER AVE Surf Shop 4.00 0.93%32.49$ 79.43$ 1.70$ 113.62$ TIKI MON 31 PIER AVE Small Café 6.00 1.40%48.73$ 119.15$ 2.55$ 170.43$ CROSS FIT HERMOSA 310 PIER AVE Fitness Store 3.00 0.70%24.37$ 59.58$ 1.28$ 85.22$ SUSATION SUNGLASS 34 PIER AVE Sunglasses Shop 2.00 0.47%16.24$ 39.72$ 0.85$ 56.81$ ZEPPYS PIZZA 36 PIER AVE Pizza Shops 9.00 2.10%73.10$ 178.73$ 3.83$ 255.65$ SHARKEEZ 52 PIER AVE Restaurants 56.00 13.08%454.82$ 1,112.07$ 23.81$ 1,590.71$ PALMILLA 39 PIER AVE Restaurants 9.00 2.10%73.10$ 178.73$ 3.83$ 255.65$ 428.00 100.00%3,476.16 8,499.40 182.00 12,157.56$ Collection Rate 3,476.16$ AB939 182.00$ Porter Cost 8,499.40$ 103.92Total12,157.56$ Lot A/Porter Service Customers Customer Address Hauler- Estimnated Service Level Yards Service Levels Based on Comparable Business Cost Component Based On Customer's Estimated % of % of Cost based on Estimated Capacity Below is the current hauler's estimated division of Lot A refuse and recyclables collection and porter service costs among the participating customers. Page Contents 3-A Proposed Estimated First-Year Revenue 3-B Proposed First Year Rates - Residential Service 3-C Proposed Estimated First Year Bin and Commercial Cart Rate Revenue - Proposed Refuse and Special Rates 3-D Proposed Estimated First Year Bin and Commercial Cart Rate Revenue - Proposed Recycling Rates 3-E Proposed Estimated First Year Bin and Commercial Cart Rate Revenue - AB 939 Fees 3-F Proposed Estimated First Year Bin and Commercial Cart Rate Revenue - Proposed Rates with AB 939 Fees 3-G Proposed Estimated First Year Bin and Commercial Cart Rate Revenue - Service Levels 3-H Proposed Estimated First Year Bin and Commercial Cart Rate Revenue - Total Rate Revenue 3-I Proposed Estimated First Year Roll-Off Box and Temporary Bin Rate Revenue 3-J Proposed Optional Residential HHW Program ATTACHMENT 3 RATE PROPOSAL FORMS Table of Contents ATTACHMENT 3 3/13/2012 3-A Ci ty of Hermosa Beach Proposing Company: Row Service Category Proposed First Year Annual Rate Revenue(1)Reference 1 Option 1: Cart System 2 Residential Cart Service Revenue (Option 1)To Be Determined (2) 3 Bin and Commercial Cart Revenue -$ Attachment 3-H, Line 31 4 Roll-off Box and Temporary Bin Rate Revenue -$ Attachment 3-I, Line 11 5 Option 2: Single Stream 6 Residential Can Service Revenue (Option 2)To Be Determined (2) 7 Bin and Commercial Cart Revenue -$ Attachment 3-H, Line 31 8 Roll-off Box and Temporary Bin Rate Revenue -$ Attachment 3-I, Line 11 (1) Inclusive of all City fees. PROPOSED ESTIMATED FIRST-YEAR RATE REVENUE Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. Enter proposer's name in the above bolded box. Confirm that rate revenue is accurately reflected, based upon proposer's proposed rates. (2) For proposal evaluation purposes, single family cart service rate revenues will be estimated by the City using the contractor's proposed rate, and the cart distribution based on the average container distribution estimated by proposers. ATTACHMENT 3 3/13/2012 3-B City of Hermosa Beach Proposing Company: Row Monthly Rate 1 Option 1: Cart System 2 One refuse and unlimited recycling carts (1) 3 - 95-gallon refuse cart (2)-$ 4 - 64-gallon refuse cart - Base Rate 5 - 35-gallon refuse cart (3)-$ 6 Unlimited refuse and recycling can collection (1) 7 Additional Refuse Cart Rates (for each refuse cart above one) 8 - 95-gallon $8.00 9 - 64-gallon $6.00 10 - 35-gallon $4.00 11 Opt-In Green Waste Program (4) 12 - 96-gallon 13 - 64-gallon 14 - 35-gallon 15 Option 2: Single Stream 16 Unlimited single stream refuse and recycling collection (1) 17 Opt-In Green Waste Program (5)included (2) 95-gallon refuse cart rate shall be set $4.00 per month higher than the proposed 64-gallon rate. (3) 35-gallon refuse cart rate shall be set $4.00 per month lower than the proposed 64-gallon rate. PROPOSED FIRST-YEAR RATES - RESIDENTIAL SERVICE Provide rates in the bold boxes on rows 4, 6, 12, 13 and 14 for Option 1. The 95 and 35-gallon cart rates should calculate automatically based on the 64-gallon rate. Enter a rate on row 16 for Option 2. See Attachments 4-A and 4-B for annual revenue estimate. Proposed rates shall include all City fees. Service Category Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. - (4) Propose rates no higher than additional refuse cart rates. (5) Green waste included in program at no additional cost. Details of Option 2 green waste program must be described, including container type, in proposal. (1) Includes $0.25/home/month AB 939 fee. ATTACHMENT 3 3/13/2012 3-C City of Hermosa Beach Proposing Company: 1 Porter Service Monthly Rate - to be allocated among participating businesses 1 2 3 4 5 6 7 2 Refuse Containers 3 32-Gallon Cart -$ -$ -$ -$ -$ -$ -$ 4 64-Gallon Cart -$ -$ -$ -$ -$ -$ -$ 5 96-Gallon Cart -$ -$ -$ -$ -$ -$ -$ 6 1 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 7 1.5 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 8 2 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 9 3 Cubic Yard -$ -$ -$ -$ -$ -$ 10 4 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 11 6 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 12 8 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 13 Special Services (set equal to current rates) 14 Scout Service 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 15 Push-Out Service 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 16 Locking Bin 5.79$ 5.79$ 5.79$ 5.79$ 5.79$ 5.79$ 5.79$ 1 2 3 4 5 6 7 17 Refuse Containers 18 32-Gallon Cart 24%42%59%77%94%112%140% 19 64-Gallon Cart 38%66%93%120%147%175%217% 20 96-Gallon Cart 52%87%122%157%192%227%262% 21 1 Cubic Yard 64%96%129%161%192%225%263% 22 1.5 Cubic Yard 71%107%152%179%214%287%336% 23 2 Cubic Yard 86%132%179%225%264%304%355% 24 3 Cubic Yard 100%154%207%261%314%367%431% 25 4 Cubic Yard 120%184%278%313%377%442%517% 26 6 Cubic Yard 150%230%311%391%472%552%646% 27 8 Cubic Yard 186%286%383%479%571%668%783% (1) Proposed rates shall include all City fees, with the exception of AB 939 fees which are included on Attachment 3-E. Instructions: Enter proposed rates for Porter Service on row 1 and for the monthly collection of a three-cubic-yard bin once per week on row 9. All other rates on this page (Attachment 3-C) and for commercial recycling (Attachment 3-D) should calculate in a a preset relationship to the proposed three-yard rate. See relationship of rates listed below; this represents the relationship between existing rates. PROPOSED ESTIMATED FIRST-YEAR BIN AND COMMERCIAL CART RATE REVENUE - PROPOSED REFUSE & SPECIAL RATES Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. Row Container Type/Size Number of Collections per Week - Proposed Monthly Rates (1) Row Container Type/Size Number of Collections per Week Relationship of Proposed 3-Yard Bin, 1x Week Rate to Other Rates ATTACHMENT 3 3/13/2012 3-D City of Hermosa Beach Proposing Company: 1 2 3 4 5 6 7 1 18-Gallon Cart (2)-$ 2 32-Gallon Cart -$ -$ -$ -$ -$ -$ -$ 3 64-Gallon Cart -$ -$ -$ -$ -$ -$ -$ 4 96-Gallon Cart -$ -$ -$ -$ -$ -$ -$ 5 1 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 6 1.5 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 7 2 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 8 3 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 9 4 Cubic Yard -$ -$ -$ -$ -$ -$ -$ (1) Calculated based on refuse rates from Attachment 3-C. Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. (2) No comparable refuse rate. 18-gallon rate is set at 64% of the 32-gallon recycling rate. Instructions: Confirm that maximum recycling rates are no more than 50% of refuse rates. PROPOSED ESTIMATED FIRST-YEAR BIN AND COMMERCIAL CART RATE REVENUE - PROPOSED RECYCLING RATES - Proposed Monthly Recycling Rates - 50% of Refuse Rates (1) Row Container Type/Size Number of Collections per Week ATTACHMENT 3 3/13/2012 3-E City of Hermosa Beach Proposing Company: 1 2 3 4 5 6 7 1 32-Gallon Cart 0.17$ 0.34$ 0.51$ 0.68$ 0.85$ 1.02$ 1.19$ 2 64-Gallon Cart 0.35$ 0.70$ 1.05$ 1.40$ 1.75$ 2.10$ 2.45$ 3 96-Gallon Cart 0.51$ 1.02$ 1.53$ 2.04$ 2.55$ 3.06$ 3.57$ 4 1 Cubic Yard 1.08$ 2.16$ 3.24$ 4.32$ 5.40$ 6.48$ 7.56$ 5 1.5 Cubic Yard 1.62$ 3.24$ 4.86$ 6.48$ 8.10$ 9.72$ 11.34$ 6 2 Cubic Yard 2.17$ 4.34$ 6.51$ 8.68$ 10.85$ 13.02$ 15.19$ 7 3 Cubic Yard 3.25$ 6.50$ 9.75$ 13.00$ 16.25$ 19.50$ 22.75$ 8 4 Cubic Yard 4.33$ 8.66$ 12.99$ 17.32$ 21.65$ 25.98$ 30.31$ 9 6 Cubic Yard 6.50$ 13.00$ 19.50$ 26.00$ 32.50$ 39.00$ 45.50$ 10 8 Cubic Yard 8.66$ 17.32$ 25.98$ 34.64$ 43.30$ 51.96$ 60.62$ Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. Monthly AB 939 Fees (applied only to refuse rates) PROPOSED ESTIMATED FIRST-YEAR BIN AND COMMERCIAL CART RATE REVENUE - AB 939 FEES - Row Refuse Container Size Number of Collections per Week Below are the AB 939 fees assessed on monthly refuse service. These rates are equal to $0.25 per yard of capacity collected monthly. ATTACHMENT 3 3/13/2012 3-F City of Hermosa Beach Proposing Company: 1 Porter Service Monthly Rate - to be allocated among participating businesses 1 2 3 4 5 6 7 2 Refuse Containers 3 32-Gallon Cart -$ -$ -$ -$ -$ -$ -$ 4 64-Gallon Cart -$ -$ -$ -$ -$ -$ -$ 5 96-Gallon Cart -$ -$ -$ -$ -$ -$ -$ 6 1 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 7 1.5 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 8 2 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 9 3 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 10 4 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 11 6 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 12 8 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 13 Recycling Containers at 50% of Refuse Rates 14 18-Gallon Cart -$ -$ -$ -$ -$ -$ -$ 15 32-Gallon Cart -$ -$ -$ -$ -$ -$ -$ 16 64-Gallon Cart -$ -$ -$ -$ -$ -$ -$ 17 96-Gallon Cart -$ -$ -$ -$ -$ -$ -$ 18 1 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 19 1.5 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 20 2 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 21 3 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 22 4 Cubic Yard -$ -$ -$ -$ -$ -$ -$ 23 Special Services 24 Scout Service 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 25 Push-Out Service 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 11.57$ 26 Locking Bin 5.79$ 5.79$ 5.79$ 5.79$ 5.79$ 5.79$ 5.79$ (1) Attachment 3-C plus Attachment 3-E. Inclusive of all City fees. Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. Instructions: Confirm that the following rates reflect the proposed rates from Attachment 3-C plus the AB 939 fees from Attachment 3-E. PROPOSED ESTIMATED FIRST-YEAR BIN AND COMMERCIAL CART RATE REVENUE - PROPOSED RATES WITH AB 939 FEES - Proposed Monthly Rates, inclusive of AB 939 Fees (1) -$ Row Container Type/Size Number of Collections per Week ATTACHMENT 3 3/13/2012 3-G City of Hermosa Beach Proposing Company: 1 2 3 4 5 6 7 1 Refuse Containers 2 32-Gallon Cart 5 5 3 64-Gallon Cart 15 2 17 4 96-Gallon Cart 22 22 5 1 Cubic Yard 56 14 5 3 78 6 1.5 Cubic Yard 43 14 4 1 62 7 2 Cubic Yard 84 27 10 2 123 8 3 Cubic Yard 85 66 48 10 9 5 223 9 4 Cubic Yard 5 11 11 13 6 11 2 59 10 6 Cubic Yard 1 2 1 1 5 11 8 Cubic Yard 1 1 12 Recycling Containers 13 18-Gallon Cart 2 2 14 32-Gallon Cart 14 14 15 64-Gallon Cart 287 3 6 1 297 16 96-Gallon Cart 200 30 8 6 244 17 1 Cubic Yard 6 2 8 18 1.5 Cubic Yard 1 1 19 2 Cubic Yard 5 4 9 20 3 Cubic Yard 4 2 3 9 21 4 Cubic Yard 4 1 5 22 Special Services 23 Scout Service 34 31 32 11 4 2 3 117 24 Push-Out Service (per 50 feet) (2)64 31 6 5 3 3 0 112 25 Locking Bin 23 8 5 3 0 0 0 39 PROPOSED ESTIMATED FIRST-YEAR BIN AND COMMERCIAL CART RATE REVENUE - SERVICE LEVELS - Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. Container/Service Count (1) Row Container Type/Size Number of Collections per Week Total (1) For purposes of estimating proposed first year rate revenue, these service levels include an estimate of revenue-producing services. City facilities are not included in the above service level counts. (2) Not applicable for push-outs less than ten feet. Fee may be charged once for 10 to 50 feet, twice for 51 to 100 feet, etc. ATTACHMENT 3 3/13/2012 3-H City of Hermosa Beach Proposing Company: 1 2 3 4 5 6 7 1 Refuse Containers 2 32-Gallon Cart -$ -$ -$ -$ -$ -$ -$ -$ 3 64-Gallon Cart -$ -$ -$ -$ -$ -$ -$ -$ 4 96-Gallon Cart -$ -$ -$ -$ -$ -$ -$ -$ 5 1 Cubic Yard -$ -$ -$ -$ -$ -$ -$ -$ 6 1.5 Cubic Yard -$ -$ -$ -$ -$ -$ -$ -$ 7 2 Cubic Yard -$ -$ -$ -$ -$ -$ -$ -$ 8 3 Cubic Yard -$ -$ -$ -$ -$ -$ -$ -$ 9 4 Cubic Yard -$ -$ -$ -$ -$ -$ -$ -$ 10 6 Cubic Yard -$ -$ -$ -$ -$ -$ -$ -$ 11 8 Cubic Yard -$ -$ -$ -$ -$ -$ -$ -$ 12 Recycling Containers at 50% of Refuse Rate 13 18-Gallon Cart -$ -$ -$ -$ -$ -$ -$ -$ 14 32-Gallon Cart -$ -$ -$ -$ -$ -$ -$ -$ 15 64-Gallon Cart -$ -$ -$ -$ -$ -$ -$ -$ 16 96-Gallon Cart -$ -$ -$ -$ -$ -$ -$ -$ 17 1 Cubic Yard -$ -$ -$ -$ -$ -$ -$ -$ 18 1.5 Cubic Yard -$ -$ -$ -$ -$ -$ -$ -$ 19 2 Cubic Yard -$ -$ -$ -$ -$ -$ -$ -$ 20 3 Cubic Yard -$ -$ -$ -$ -$ -$ -$ -$ 21 4 Cubic Yard -$ -$ -$ -$ -$ -$ -$ -$ 22 Special Services 23 Scout Service 393$ 359$ 370$ 127$ 46$ 23$ 35$ 1,353$ 24 Push-Out Service (per 50 feet) (1)740$ 359$ 69$ 58$ 35$ 35$ -$ 1,296$ 25 Locking Bin 133$ 46$ 29$ 17$ -$ -$ -$ 225$ 26 -$ 27 Monthly Porter Service Revenue (Attachment 3-C, Row 1)-$ 28 Total Projected Monthly Revenue -$ 29 12$ 30 -$ Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. Projected Monthly Collection Revenue Months PROPOSED ESTIMATED FIRST-YEAR BIN AND COMMERCIAL CART RATE REVENUE - TOTAL RATE REVENUE - Instructions: Rate revenue should calculate automatically. Confirm accuracy of calculations. Proposed Monthly Rate Revenue, inclusive of AB 939 fee Projected Annual Revenue (1) Not applicable for push-outs less than ten feet. Fee may be charged once for 10 to 50 feet, twice for 51 to 100 feet, etc. Row Container Type/Size Number of Collections per Week Total ATTACHMENT 3 3/13/2012 3-I City of Hermosa Beach Proposing Company: instructions: Enter proposed rates in bolded boxes. 1 Roll-Off Box Pulls 2 Standard Roll-Off Box - 20, 30, 40 yard per pull 10.00$ per pull (1)-$ per pull 98 pulls -$ 3 Compactor Roll-Off Box - 20 yard per pull 5.00$ per pull -$ per pull - pulls -$ 4 Compactor Roll-Off Box - 30 yard per pull 7.50$ per pull -$ per pull 12 pulls -$ 5 Compactor Roll-Off Box - 40 yard per pull 10.00$ per pull -$ per pull - pulls -$ 6 Total Service Component 110 pulls (2)-$ 7 Roll-Off Box Tons 8 Dump Fee per ton -$ per ton 485 tons (3)-$ 9 Total Roll-Off Service -$ 10 Temporary Bin 3 Cubic Yard per dump 0.75$ per dump -$ per dump 51 dumps -$ 11 Annual Rate Revenue -$ (1) Assumes all pulls are 40 cubic yards. AB 939 fees are $5.00 per pull for 20 yard standard roll-off box and $7.50 per pull for 30 yard standard roll-off box. (2) Estimated City facilities pulls not included. (3) Estimated City facilities tons not included. Row Service Count Annual Proposed First Year Rate RevenueContainer/Service Type Proposed Rate AB 939 Fee Total Rate Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. PROPOSED ESTIMATED FIRST-YEAR ROLL-OFF BOX AND TEMPORARY BIN RATE REVENUE - Customer Rate ATTACHMENT 3 3/13/2012 3-J City of Hermosa Beach Proposing Company: Instructions: Enter proposed rate in bolded box. Row Customer Type Estimated Dwelling Unit Count Proposed Per Dwelling Unit Monthly Rate (1) Estimated Monthly Rate Revenue Estimated Annual Rate Revenue 1 Individually Serviced Residential Units 6,621 -$ -$ 2 Bin Customer Units 2,929 -$ -$ -$ 3 Estimated Total Dwelling Units 9,550 -$ (1) Same rate for all dwelling units. PROPOSED OPTIONAL RESIDENTIAL HHW PROGRAM - Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. Page Contents 4-A Proposed Estimated Rate Revenue - Option 1: Cart System 4-B Proposed Estimated Rate Revenue - Option 2: Single Stream 4-C Projected Revenue Requirement for First Twelve Months of Franchise Agreement - Option 1: Cart System 4-D Projected Revenue Requirement for First Twelve Months of Franchise Agreement - Option 2: Single Stream 4-E Projected Routes and Route Hours 4-F Cost Components and Cost Weightings 4-G Tonnage Diversion Plan ATTACHMENT 4 SUPPORTING COST AND OPERATING DATA WORKSHEETS Table of Contents ATTACHMENT 4 3/13/2012 4-A City of Hermosa Beach Instructions: Provide rates in bold boxes for rates and estimated service counts. Additional rates should automatically calculate. Row Option 1: Cart System Monthly Rate (from 3-B)Monthly Revenue Annual Revenue 1 One refuse and unlimited recycling carts 2 - 96-gallon refuse cart -$ units -$ -$ 3 - 64-gallon refuse cart - Base Rate -$ units -$ -$ 4 - 35-gallon refuse cart -$ units -$ -$ 5 Unlimited refuse and recycling can collection (2)-$ units 6 Total Number of Customers (must total 6,621 units)- units 7 Backyard Service Charge 4.00$ 39 units 156$ 1,872$ 8 Additional Refuse Cart Rates (for each refuse cart above one) 9 - 96-gallon 8.00$ units -$ -$ 10 - 64-gallon 6.00$ units -$ -$ 11 - 35-gallon 4.00$ units -$ -$ 12 Opt-In Green Waste Program 13 - 96-gallon -$ units -$ -$ 14 - 64-gallon -$ units -$ -$ 15 - 35-gallon -$ units -$ -$ 16 Total Residential Cart Service Rate Revenue -$ -$ 17 Bin and Commercial Cart Revenue -$ 18 Roll-Off Box and Temporary Bin Rate Revenue -$ 19 Total Rate Revenue - Option 1 -$ (1) Proposers shall propose the customer cart distribution assumed by proposer in developing this proposal. (2) For customers unable to accommodate carts. PROPOSED ESTIMATED RATE REVENUE - OPTION 1: CART SYSTEM Proposing Company:- Count (1) Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. ATTACHMENT 4 3/13/2012 4-B City of Hermosa Beach Instructions: Provide estimated service count in bold box. Additional rates should automatically calculate. Row Option 2: Single Stream Monthly Rate (from 3-B)Monthly Revenue Annual Revenue 1 1x week, unlimited refuse, and recycling collection in customer-provided containers 2 Per Unit -$ 6,621 units -$ -$ 3 Backyard Service Charge 4.00$ 39 units 156$ 1,872$ 4 Opt-In Green Waste Program Included units (1) 5 Total Residential Service Rate Revenue -$ -$ 6 Bin and Commercial Cart Revenue -$ 7 Roll-Off Box and Temporary Bin Rate Revenue -$ 8 Total Rate Revenue - Option 2 -$ (1) Indicate projected participants. PROPOSED ESTIMATED RATE REVENUE - OPTION 2: SINGLE STREAM Proposing Company:- Count Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. ATTACHMENT 4 3/13/2012 4-C City of Hermosa Beach Proposing Company: Instructions: Fill in boxes outlined in bold. Refuse Recyclables Green Waste Refuse Recyclables 1 Operations 2 Porter Service Costs -$ 3 Truck Operating Costs (a)-$ 4 Transfer Station, Transport, MRF costs -$ 5 Transformation Costs (if applicable)-$ 6 Greenwaste Processing/Disposal Costs -$ 7 Landfill Disposal Costs (b)-$ 8 Container Depreciation/Amortization Costs -$ 9 Less Recyclable Material Sales Revenues (c) -$ 10 Subtotal: Operations Costs -$ -$ -$ -$ -$ -$ -$ -$ 11 General, Administrative and Profit 12 Administrative Fee 50,000$ 13 Annualized Auditing Fee (d) 25,714$ 14 Amortized City Contracting Fee (e)21,429$ 15 Collector Fee (f)-$ 16 AB 939 Fee 61,367$ 17 Other 18 TOTAL REVENUE REQUIREMENT -$ 19 Tons Collected - 20 Operations Cost Per Ton Collected -$ -$ -$ -$ -$ -$ -$ -$ 21 Revenue Requirement per Ton Collected -$ (c) Net revenue should be entered as a negative value. (e) $150,000 amortized over the 7-year base term of the agreement. (f) 10% of total rate revenue. Should automatically calculate as 10% of Attachment 4-A, Row 19. (g) Includes billed customers and services provided to schools and City facilities with bin services. PROJECTED REVENUE REQUIREMENT FOR THE FIRST TWELVE MONTHS OF FRANCHISE AGREEMENT - Row Residential Cart Service Option 1: Cart System Bin Service (g) Roll-Off Service Bulky Item Pickup, Holiday Trees, City wide Cleanups, Special Events, Other TOTAL ANNUAL REVENUE RQMT (b) Includes actual disposal costs at landfill, net of transfer, transport and processing to be included on Row 3. (d) $80,000 second year, $50,000 every two years thereafter. Assume 3 audits ($180,000/7 years). Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. (a) Includes Driver/Helper/Supervisor Wages and Benefits, Vehicle Depreciation and Maintenance, Vehicle Insurance, Fuel, Uniforms and Other Route Costs. ATTACHMENT 4 3/13/2012 4-D City of Hermosa Beach Proposing Company: Instructions: Fill in boxes outlined in bold. Refuse/ Recyclables Yard Waste Refuse Recyclables 1 Operations 2 Porter Service Costs -$ 3 Truck Operating Costs (a)-$ 4 Transfer Station, Transport, MRF costs -$ 5 Transformation Costs (if applicable)-$ 6 Greenwaste Processing/Disposal Costs -$ 7 Landfill Disposal Costs (b)-$ 8 Container Depreciation/Amortization Costs -$ 9 Less Recyclable Material Sales Revenues (c) -$ 10 Subtotal: Operations Costs -$ -$ -$ -$ -$ -$ -$ 11 General, Administrative and Profit 12 Administrative Fee 50,000$ 13 Annualized Auditing Fee (d) 25,714$ 14 Amortized City Contracting Fee (e)21,429$ 15 Collector Fee (f)-$ 16 AB 939 Fee 61,367$ 17 Other 18 TOTAL REVENUE REQUIREMENT -$ 19 Tons Collected - 20 Operations Cost Per Ton Collected -$ -$ -$ -$ -$ -$ -$ 21 Revenue Requirement per Ton Collected -$ (c) Net revenue should be entered as a negative value. (e) $150,000 amortized over the 7-year base term of the agreement. (f) 10% of total rate revenue. Should automatically calculate as 10% of Attachment 4-B, Row 8. (g) Includes billed customers and services provided to schools and City facilities with bin services. Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. Option 2: Single Stream (a) Includes Driver/Helper/Supervisor Wages and Benefits, Vehicle Depreciation and Maintenance, Vehicle Insurance, Fuel, Uniforms and Other Route Costs. (b) Includes actual disposal costs at landfill, net of transfer, transport and processing to be included on Row 3. (d) $80,000 second year, $50,000 every two years thereafter. Assume 3 audits ($180,000/7 years). PROJECTED REVENUE REQUIREMENT FOR THE FIRST TWELVE MONTHS OF FRANCHISE AGREEMENT - Row Residential Cart Service Bin Service (g) Roll-Off Service Bulky Item Pickup, Holiday Trees, City wide Cleanups, Special Events, Other TOTAL ANNUAL REVENUE RQMT ATTACHMENT 4 3/13/2012 4-E City of Hermosa Beach Proposing Company: Instructions: Fill in boxes outlined in bold. Mon Tues Wed Thurs Fri Sat 1 Refuse Routes - - 2 Recycling Routes - - 3 Green Waste Routes - - 4 Refuse Bin Routes - - 5 Recycling Bin Routes - - 6 Bulky Item Pickup Routes - - 7 Roll-Off Box Routes - - 8 Scout Vehicle Routes - - 9 Other: _________________- - 10 Other: _________________- - 11 Total - - - - - - - - Mon Tues Wed Thurs Fri Sat 12 Refuse/Recycling Routes - - 13 Green Waste Routes - - 14 Refuse Bin Routes - - 15 Recycling Bin Routes - - 16 Bulky Item Pickup Routes - - 17 Roll-Off Box Routes - - 18 Scout Vehicle Routes - - 19 Other: _________________- - 20 Other: _________________- - 21 Total - - - - - - - - (1) For example, 8, 9 or 10 hours per day. (2) Total Route Days/Week multiplied by Hours Per Route per Day. (3) 1 or 2 persons. PROJECTED ROUTES AND ROUTE HOURS Option 2: Single Stream Hours per Route Per Day (1) Total Route Hours Per Week (2) Routes Per Day Total Route Days/Week Row Route Type Routes Per Day Total Route Days/Week Crew Size Per Truck (3) Crew Size Per Truck (3) - Option 1: Cart System Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. Row Route Type Hours per Route Per Day (1) Total Route Hours Per Week (2) ATTACHMENT 4 3/13/2012 4-F City of Hermosa Beach Proposing Company: Annual Dollar Amount Percentage of Total Costs Annual Dollar Amount Percentage of Total Costs 1 Labor 0%0% 2 Fuel 0%0% 3 Equipment 0%0% 4 Disposal 0%N/A (1)N/A 5 All Other 0%0% 6 Total -$ 0%-$ 0%-$ 7 Roll-Off Box Disposal Costs from Attachment 3-I, Row 8:-$ 8 Total Cost Based Upon This Attachment 4-F:-$ 9 Total Projected Revenue Requirement Based Upon Attachment 4-A, Row 19, last column (should agree to Row 8):-$ 10 Difference (explain any significant difference in proposal):-$ (1) Roll-off disposal/transformation is compensated on a per ton basis. Annual Dollar Amount Percentage of Total Costs Annual Dollar Amount Percentage of Total Costs 11 Labor 0%0% 12 Fuel 0%0% 13 Equipment 0%0% 14 Disposal 0%N/A (1)N/A 15 All Other 0%0% 16 Total -$ 0%-$ 0%-$ 17 Roll-Off Box Disposal Costs from Attachment 3-I, Row 8:-$ 18 Total Cost Based Upon This Attachment 4-F:-$ 19 Total Projected Revenue Requirement Based Upon Attachment 4-B, Row 8, last column (should agree to Row 18):-$ 20 Difference (explain any significant difference in proposal):-$ (1) Roll-off disposal/transformation is compensated on a per ton basis. Row Cost Components All Services Except Roll-Off Roll-Off Total Option 2: Single Stream Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. COST COMPONENTS AND COST WEIGHTINGS - Instructions: Fill in boxes outlined in bold. Percentages should automatically calculate. Row Cost Components All Services Except Roll-Off Roll-Off Total Option 1: Cart System ATTACHMENT 4 3/13/2012 4-G City of Hermosa Beach Proposing Company: Commingled Recycling Greenwaste C&D Transformation Mixed Waste Processing Food Waste Other (1)Total Diverted 1 Residential Cart Refuse - - - 2 Residential Cart Recyclables - - - 3 Residential Cart Greenwaste - - - 4 Bin Refuse - - - 5 Bin Recyclables - - - 6 Roll-Off Service - - - 7 Holiday Trees / Bulky Items / Citywide Cleanups / Special Events - - - 8 Total - - - - - - - - - - Commingled Recycling Greenwaste C&D Transformation Mixed Waste Processing Food Waste Other (1)Total Diverted 9 Residential Single Stream Can - - - 10 Residential Cart Greenwaste - - - 11 Bin Refuse - - - 12 Bin Recyclables - - - 13 Roll-Off Service - - - 14 Holiday Trees / Bulky Items / Citywide Cleanups / Special Events - - - 15 Total - - - - - - - - - - (1) Describe "Other" programs below: Option 2: Single Stream Failure to complete and submit this form will deem the proposer's franchise proposal non-responsive. Row Waste Stream Annual Tons Collected (from 4D, row 19) Annual Tons Diverted Tons Diverted as % of Tons Collected TONNAGE DIVERSION PLAN - Instructions: Fill in boxes outlined in bold. Confirm automatic calculations. Proposers must demonstrate how they will reach their proposed diversion rate for hauler-collected waste. Row Waste Stream Annual Tons Collected (from 4C, row 19) Annual Tons Diverted Tons Diverted as % of Tons Collected Option 1: Cart System March 13, 2012 5-1 City of Hermosa Beach Failure to complete and submit this form will deem the proposer’s proposal incomplete and nonconforming. Attachment 5 Anti-Collusion Affidavit Proposer as a part of this proposal submits the following affidavit: The undersigned deponent, of lawful age, being duly sworn, upon his oath deposes and says: That he has lawful authority to execute the within and foregoing proposal; that he has executed the same by subscribing his name hereto under oath for and on behalf of said proposer; that proposer has not directly or indirectly entered into any agreement, express or implied, with any proposer or proposers, having for its object the controlling of the price or amount of such proposal or proposals, the limiting of the proposals or proposers, the parceling or farming out to any proposer or proposers or other persons of any part of the contract or any part of the subject matter of the proposal or proposals or of the profits thereof, and that he has not and will not divulge the sealed Proposal to any person whomsoever, except those having a partnership or other financial interest with him in said proposal or proposals, until after the said sealed proposal or proposals are opened. Deponent further states that the proposer has not been a party to any collusion among proposers in restraint of freedom of competition; by agreement to make a proposal at a fixed price or to refrain from submitting a proposal; or with any City official or employee as to quantity, quality, or price in the prospective contract; or in any discussions between proposers and any City official concerning exchange of money or other things of value for special consideration in the letting of a contract; that the proposer has not paid, given or donated or agreed to pay, give or donate to any official, officer or employee of the City directly or indirectly, in the procuring of the award of contract pursuant to this proposal. Executed under penalty of perjury on this day of , at . SIGNED BY TITLE COMPANY___________________________________ March 13, 2012 City of Hermosa Beach Attachment 6 Draft Integrated Solid Waste Management Services Agreement DRAFT AGREEMENT BETWEEN CITY OF HERMOSA BEACH AND _______________________ FOR INTEGRATED SOLID WASTE MANAGEMENT SERVICES * * * March 13, 2012 Draft, March 13, 2012 i City of Hermosa Beach AGREEMENT BETWEEN CITY OF HERMOSA BEACH AND __________________________ FOR INTEGRATED SOLID WASTE MANAGEMENT SERVICES TABLE OF CONTENTS Page RECITALS 1 ARTICLE 1.................................................................................................................................................3  DEFINITIONS.......................................................................................................................................................................... 3  1.1 AB 939 ...................................................................................................................................................................... 3  1.2 AFFILIATE ................................................................................................................................................................. 3  1.3 BILLINGS ................................................................................................................................................................... 4  1.4 BIN ............................................................................................................................................................................ 4  1.5 BIN SERVICE ............................................................................................................................................................. 4  1.6 BULKY ITEMS ............................................................................................................................................................ 4  1.7 CALRECYCLE ............................................................................................................................................................ 5  1.8 CAN .......................................................................................................................................................................... 5  1.9 CAN SERVICE ............................................................................................................................................................ 5  1.10 CART .................................................................................................................................................................... 5  1.11 CITY ..................................................................................................................................................................... 5  1.12 CITY MANAGER ................................................................................................................................................... 5  1.13 COLLECT/COLLECTION ...................................................................................................................................... 5  1.14 COMMERCIAL ...................................................................................................................................................... 6  1.15 COMMERCIAL PREMISES ...................................................................................................................................... 6  1.16 CONTRACTOR ...................................................................................................................................................... 6  1.17 CONTRACTOR'S PROPOSAL ................................................................................................................................. 6  1.18 CONTRACTOR COMPENSATION .......................................................................................................................... 6  1.19 CONSTRUCTION AND DEMOLITION DEBRIS ....................................................................................................... 7  1.20 CONTAINER ......................................................................................................................................................... 7  1.21 CPI ....................................................................................................................................................................... 7  1.22 CUSTOMER ........................................................................................................................................................... 7  1.23 DISPOSE/DISPOSAL ............................................................................................................................................. 7  1.24 DISPOSAL SITE(S) ................................................................................................................................................. 7  1.25 DIVERSION ........................................................................................................................................................... 7  1.26 ELECTRONIC WASTE ............................................................................................................................................. 8  1.27 ENVIRONMENTAL LAWS ..................................................................................................................................... 8  1.28 FACILITY .............................................................................................................................................................. 8  1.29 GREEN WASTE ..................................................................................................................................................... 8  1.30 GREEN WASTE PROCESSING FACILITY................................................................................................................ 8  1.31 GROSS RECEIPTS .................................................................................................................................................. 9  Draft, March 13, 2012 ii City of Hermosa Beach 1.32 HAZARDOUS SUBSTANCE.................................................................................................................................... 9  1.33 HAZARDOUS WASTE ........................................................................................................................................... 9  1.34 HOUSEHOLD HAZARDOUS WASTE (“HHW”) ................................................................................................. 10  1.35 MATERIALS RECOVERY FACILITY (“MRF”) ..................................................................................................... 10  1.36 MULTI-FAMILY DWELLING ............................................................................................................................... 10  1.37 PERSON .............................................................................................................................................................. 10  1.38 PREMISES ........................................................................................................................................................... 10  1.39 RATE YEAR ........................................................................................................................................................ 10  1.40 RECYCLE/RECYCLING....................................................................................................................................... 11  1.41 RECYCLABLE MATERIALS .................................................................................................................................. 11  1.42 REFUSE ............................................................................................................................................................... 11  1.43 RESIDENTIAL ..................................................................................................................................................... 11  1.44 RESIDENTIAL PREMISES ..................................................................................................................................... 11  1.45 ROLL-OFF BOX ................................................................................................................................................... 12  1.46 SINGLE FAMILY DWELLING ............................................................................................................................... 12  1.47 SOLID WASTE .................................................................................................................................................... 12  1.48 SOLID WASTE HANDLING SERVICES ................................................................................................................. 12  1.49 SOURCE SEPARATED .......................................................................................................................................... 12  1.50 STATE ................................................................................................................................................................. 12  1.51 TRANSFORMATION ............................................................................................................................................ 12  1.52 TRANSFER STATION ........................................................................................................................................... 13  1.53 WASTE GENERATOR .......................................................................................................................................... 13  ARTICLE 2...............................................................................................................................................14  GRANT AND ACCEPTANCE OF FRANCHISE ............................................................................................................. 14  2.1 GRANT AND ACCEPTANCE OF FRANCHISE, INDEMNITY OF AWARD ................................................................... 14  2.2 ENFORCEMENT OF EXCLUSIVITY ............................................................................................................................ 14  2.3 EFFECTIVE DATE .................................................................................................................................................... 15  2.4 TERM OF AGREEMENT ............................................................................................................................................ 15  2.5 CITY’S OPTION TO EXTEND TERM.......................................................................................................................... 15  2.6 REPRESENTATIONS AND WARRANTIES OF CONTRACTOR .................................................................................... 15  2.7 CONDITIONS TO EFFECTIVENESS OF AGREEMENT ................................................................................................. 17  2.8 DELEGATION OF AUTHORITY ................................................................................................................................ 17  2.9 LIMITATIONS TO SCOPE.......................................................................................................................................... 18  2.10 CITY'S RIGHT TO DIRECT CHANGES ................................................................................................................. 19  2.10.1 General ..................................................................................................................................................... 19  2.10.2 New Diversion Programs ......................................................................................................................... 20  2.11 OWNERSHIP OF SOLID WASTE .......................................................................................................................... 20  2.12 CONTRACTOR STATUS ....................................................................................................................................... 21  2.13 CONTRACTOR AUTHORIZATION ....................................................................................................................... 21  2.14 PERMITS AND LICENSES .................................................................................................................................... 22  ARTICLE 3...............................................................................................................................................23  FEES PAID TO THE CITY ................................................................................................................................................... 23  3.1 CONTRACTING FEE ................................................................................................................................................ 23  3.2 COLLECTOR FEE ..................................................................................................................................................... 23  3.3 ADMINISTRATIVE FEE ............................................................................................................................................ 23  3.4 AB 939 FEE ............................................................................................................................................................. 23  3.5 TIMING AND SUBMITTAL OF MONTHLY FEE PAYMENTS ...................................................................................... 24  3.6 FUTURE FEES .......................................................................................................................................................... 24  Draft, March 13, 2012 iii City of Hermosa Beach ARTICLE 4...............................................................................................................................................25  DIRECT SERVICES .............................................................................................................................................................. 25  4.1 REFUSE .................................................................................................................................................................... 25  4.1.1 General .......................................................................................................................................................... 25  4.1.2 Residential Cart/Can Refuse Collection ........................................................................................................ 25  4.1.3 Refuse Cart Overage ..................................................................................................................................... 26  4.1.4 Walk-Out Service .......................................................................................................................................... 27  4.1.5 Bin Refuse Collection .................................................................................................................................... 27  4.1.6 Commercial Premises Cart Service ............................................................................................................... 28  4.1.7 Overflowing Bins and Carts ......................................................................................................................... 28  4.1.8 Temporary Bin Service .................................................................................................................................. 29  4.1.9 Scout Vehicles ............................................................................................................................................... 29  4.1.10 Bin Push-out Service ................................................................................................................................ 29  4.1.11 Locking Bins ............................................................................................................................................. 30  4.1.12 Roll-off Box Service .................................................................................................................................. 30  4.1.13 Extra Assistance in High Solid Waste Generating Commercial Areas .................................................... 30  4.1.14 Shared Downtown Solid Waste Container Enclosure and Porter Service ............................................... 31  4.1.15 On-Call Bulky Item Pickup ...................................................................................................................... 33  4.1.16 Bulky Item Diversion ............................................................................................................................... 33  4.1.17 Disposal of Electronic and Other Special Wastes ..................................................................................... 34  4.1.18 Optional On-Call Household Hazardous Waste Collection and Disposal ............................................... 34  4.1.19 Food Waste Program Option .................................................................................................................... 34  4.1.20 Annual Document Shred Day ................................................................................................................. 34  4.2 RECYCLING ............................................................................................................................................................. 35  4.2.1 Residential Cart Recycling Collection .......................................................................................................... 35  4.2.2 Commercial Recyclables Collection ............................................................................................................... 35  4.2.3 Warning Notice ............................................................................................................................................. 36  4.2.4 Marketing and Sale of Recyclable Materials ................................................................................................. 36  4.2.5 Minimum Recycling Requirements .............................................................................................................. 37  4.2.6 Construction and Demolition Debris Diversion ........................................................................................... 37  4.3 GREEN WASTE PROGRAM ...................................................................................................................................... 37  4.3.1 Single Family Green Waste Collection ......................................................................................................... 37  4.3.2 Holiday Tree Collection Program ................................................................................................................. 38  4.3.3 End Uses for Green Waste ............................................................................................................................ 38  4.3.4 Backyard Compost Program ......................................................................................................................... 39  4.4 CART SELECTION, DISTRIBUTION AND EXCHANGES ............................................................................................. 39  4.4.1 Carts .............................................................................................................................................................. 39  4.4.1.1 Residential Container Distribution .......................................................................................................... 39  4.4.1.2 Removal of Existing Containers ............................................................................................................... 40  4.4.1.3 Cart Design Requirements ....................................................................................................................... 40  4.4.1.4 Capacity .................................................................................................................................................... 40  4.4.1.5 Cart Handles ............................................................................................................................................ 41  4.4.1.6 Cart Lid .................................................................................................................................................... 41  4.4.1.7 Cart Colors ............................................................................................................................................... 42  4.4.1.8 Cart Markings .......................................................................................................................................... 42  4.4.2 Cart Performance Requirements ................................................................................................................... 42  4.4.2.1 Cart Load Capacity ................................................................................................................................... 42  4.4.2.2 Cart Durability ........................................................................................................................................ 43  4.4.2.3 Chemical Resistant ................................................................................................................................... 43  4.4.2.4 Stability and Maneuverability ................................................................................................................. 43  4.4.2.5 Lid Performance ....................................................................................................................................... 44  4.4.2.6 Reparability .............................................................................................................................................. 44  4.4.3 Cart Ownership and Maintenance Responsibilities ..................................................................................... 44  Draft, March 13, 2012 iv City of Hermosa Beach 4.4.4 Bins ............................................................................................................................................................... 45  4.4.5 Roll-off Boxes ................................................................................................................................................ 45  4.5 CITY SERVICES ........................................................................................................................................................ 46  4.5.1 City Facilities Collection ............................................................................................................................... 46  4.5.2 City Litter Containers ................................................................................................................................... 46  4.5.3 School Facilities Collection ............................................................................................................................ 48  4.5.4 Special Events ............................................................................................................................................... 48  4.5.5 Emergency Collection and Disposal Service ................................................................................................. 49  4.5.6 Abandoned Item Collection ........................................................................................................................... 49  4.5.7 Large Venue Event Assistance, Event Recycling ......................................................................................... 49  4.5.8 Litter Boxes for Non-City-Sponsored Events ................................................................................................ 49  4.5.9 Code Enforcement Assistances ...................................................................................................................... 49  4.5.10 Capacity Guarantee .................................................................................................................................. 49  4.6 OPERATIONS ........................................................................................................................................................... 50  4.6.1 Schedules ....................................................................................................................................................... 50  4.6.1.1 Collection Days and Hours ...................................................................................................................... 50  4.6.1.2 Review of Schedules and Routing ............................................................................................................ 50  4.6.1.3 Missed Pickups ......................................................................................................................................... 50  4.6.2 Vehicles ......................................................................................................................................................... 51  4.6.3 Litter Abatement ........................................................................................................................................... 54  4.6.4 Personnel ....................................................................................................................................................... 55  4.6.5 Identification Required .................................................................................................................................. 56  4.6.6 Fees and Gratuities ....................................................................................................................................... 57  4.6.7 Non-Discrimination ...................................................................................................................................... 57  4.6.8 Routing and Coordination With Street Sweeping Services .......................................................................... 57  4.6.9 Report of Accumulation of Solid Waste; Unauthorized Dumping ............................................................... 57  4.7 TRANSPORTATION OF SOLID WASTE ..................................................................................................................... 57  4.8 APPROVED FACILITIES ........................................................................................................................................... 58  4.9 STATUS OF DISPOSAL SITE ..................................................................................................................................... 58  4.10 DEDICATED ROUTES .......................................................................................................................................... 58  4.11 SERVICE EXCEPTIONS; HAZARDOUS WASTE NOTIFICATIONS ......................................................................... 59  ARTICLE 5...............................................................................................................................................60  OTHER SERVICES ............................................................................................................................................................... 60  5.1 CUSTOMER SERVICE ............................................................................................................................................... 60  5.1.1 Local Office.................................................................................................................................................... 60  5.1.2 Complaint Documentation ............................................................................................................................ 60  5.1.3 Resolution of Customer Complaints ............................................................................................................. 61  5.1.4 Service Liaison/Route Supervisor ................................................................................................................. 61  5.2 EDUCATION AND PUBLIC AWARENESS ................................................................................................................. 62  5.2.1 General .......................................................................................................................................................... 62  5.2.2 Implementation and On-going Education Requirements ............................................................................. 62  5.2.3 Contractor Representative ............................................................................................................................ 64  5.2.4 Community Events ....................................................................................................................................... 64  5.2.5 School Outreach ............................................................................................................................................ 64  5.2.6 Business Outreach ........................................................................................................................................ 64  5.2.7 Multi-Family Outreach ................................................................................................................................ 65  5.2.8 Facility Tours ................................................................................................................................................ 66  5.3 WASTE GENERATION/CHARACTERIZATION STUDIES .......................................................................................... 66  ARTICLE 6...............................................................................................................................................67  CONTRACTOR COMPENSATION AND RATES ......................................................................................................... 67  Draft, March 13, 2012 v City of Hermosa Beach 6.1 GENERAL ................................................................................................................................................................ 67  6.2 INITIAL RATES ........................................................................................................................................................ 67  6.3 SCHEDULE OF FUTURE ADJUSTMENTS ................................................................................................................... 67  6.3.1 Request Submittal ......................................................................................................................................... 67  6.3.2 Approval Process ........................................................................................................................................... 67  6.4 METHOD OF ADJUSTMENTS ................................................................................................................................... 68  6.4.1 General .......................................................................................................................................................... 68  6.4.2 Cost Components for Rate Adjustment Indices ............................................................................................ 68  6.4.3 Rate Adjustment Steps ................................................................................................................................. 69  6.5 EXTRAORDINARY ADJUSTMENTS ........................................................................................................................... 70  6.6 REDELIVERY/RETURN TRIP FEE ............................................................................................................................ 70  6.7 CUSTOMER BILLING AND CONTRACTOR COMPENSATION ................................................................................... 71  6.7.1 Residential Customers Receiving Individual-Unit Service ............................................................................ 71  6.7.2 Permanent Bin and Roll-Off Box Customers ................................................................................................ 71  6.7.3 Temporary Services Billing ........................................................................................................................... 71  6.7.4 Contractor’s Invoices .................................................................................................................................... 71  6.7.5 Billing Disputes ............................................................................................................................................ 72  6.7.6 Delinquent Accounts .................................................................................................................................... 72  6.7.7 Customer Billing Adjustments ..................................................................................................................... 73  6.7.8 Exemption from Service ................................................................................................................................ 73  REVIEW OF SERVICES AND PERFORMANCE ............................................................................................................ 75  7.1 PERFORMANCE REVIEW MEETING ......................................................................................................................... 75  7.2 PERFORMANCE SATISFACTION SURVEY ................................................................................................................ 76  7.3 ROUTE AUDIT ......................................................................................................................................................... 77  ARTICLE 8...............................................................................................................................................79  RECORDS, REPORTS AND INFORMATION REQUIREMENTS ............................................................................. 79  8.1 GENERAL ................................................................................................................................................................ 79  8.2 RECORDS ................................................................................................................................................................ 79  8.2.1 General .......................................................................................................................................................... 79  8.2.2 Financial Records .......................................................................................................................................... 80  8.2.3 Solid Waste Records ...................................................................................................................................... 80  8.2.4 CERCLA Defense and Disposal Records ...................................................................................................... 81  8.2.5 Other Programs' Records ............................................................................................................................. 82  8.2.6 Audit ............................................................................................................................................................. 82  8.2.7 Payments and Refunds ................................................................................................................................. 83  8.3 REPORTS ................................................................................................................................................................. 83  8.3.1 Report Formats and Schedule ....................................................................................................................... 83  8.3.2 Monthly Reports ........................................................................................................................................... 84  8.3.3 Annual Report .............................................................................................................................................. 84  8.3.4 Financial Report ............................................................................................................................................ 85  8.4 REPORTING ADVERSE INFORMATION .................................................................................................................... 85  8.5 RIGHT TO INSPECT RECORDS ................................................................................................................................. 86  8.6 FAILURE TO REPORT ............................................................................................................................................... 86  ARTICLE 9...............................................................................................................................................87  INDEMNIFICATION, INSURANCE, BOND AND LETTER OF CREDIT ............................................................... 87  9.1 DEFENSE OF AGREEMENT ...................................................................................................................................... 87  9.2 INDEMNIFICATION ................................................................................................................................................. 87  9.3 HAZARDOUS SUBSTANCES INDEMNIFICATION ..................................................................................................... 88  9.4 AB 939 INDEMNIFICATION AND GUARANTEE ...................................................................................................... 90  9.5 INSURANCE............................................................................................................................................................. 90  Draft, March 13, 2012 vi City of Hermosa Beach 9.6 FAITHFUL PERFORMANCE BOND ........................................................................................................................... 96  9.7 FAITHFUL PERFORMANCE LETTER OF CREDIT ...................................................................................................... 96  9.8 FORFEITURE OF PERFORMANCE BOND .................................................................................................................. 96  9.9 FORFEITURE OF LETTER OF CREDIT ....................................................................................................................... 97  9.10 PERFORMANCE SECURITY BEYOND SERVICE TERM .......................................................................................... 97  ARTICLE 10.............................................................................................................................................98  CITY'S RIGHT TO PERFORM SERVICE ......................................................................................................................... 98  10.1 GENERAL ........................................................................................................................................................... 98  10.2 BILLING AND COMPENSATION TO CITY DURING CITY'S POSSESSION ............................................................. 99  10.3 CITY'S RIGHT TO RELINQUISH POSSESSION ...................................................................................................... 99  10.4 CITY'S POSSESSION NOT A TAKING ................................................................................................................ 100  10.5 DURATION OF CITY'S POSSESSION .................................................................................................................. 100  ARTICLE 11...........................................................................................................................................101  DEFAULT, REMEDIES AND LIQUIDATED DAMAGES .......................................................................................... 101  11.1 EVENTS OF DEFAULT ....................................................................................................................................... 101  11.2 RIGHT TO TERMINATE UPON DEFAULT AND RIGHT TO SPECIFIC PERFORMANCE ....................................... 103  11.3 LIQUIDATED DAMAGES ................................................................................................................................... 104  11.4 EXCUSE FROM PERFORMANCE ........................................................................................................................ 109  11.4.1 Force Majeure ......................................................................................................................................... 109  11.4.2 Labor Unrest .......................................................................................................................................... 109  11.4.3 Procedures In Event of Excused Performance ........................................................................................ 110  11.5 NOTICE, HEARING AND APPEAL OF CITY BREACH ........................................................................................ 110  11.6 ASSURANCE OF PERFORMANCE ...................................................................................................................... 111  ARTICLE 12...........................................................................................................................................112  MISCELLANEOUS PROVISIONS .................................................................................................................................. 112  12.1 RELATIONSHIP OF PARTIES ............................................................................................................................. 112  12.2 COMPLIANCE WITH LAW ................................................................................................................................ 112  12.3 GOVERNING LAW ............................................................................................................................................ 112  12.4 JURISDICTION ................................................................................................................................................... 112  12.5 ASSIGNMENT ................................................................................................................................................... 113  12.6 CONTRACTING OR SUBCONTRACTING ............................................................................................................ 115  12.7 BINDING ON ASSIGNS ...................................................................................................................................... 115  12.8 COOPERATION IN PREPARATION FOR TERMINATION OR EXPIRATION OF CONTRACT ................................. 115  12.9 PARTIES IN INTEREST ....................................................................................................................................... 116  12.10 WAIVER ........................................................................................................................................................... 116  12.11 CONTRACTOR'S INVESTIGATION ..................................................................................................................... 117  12.12 CONDEMNATION ............................................................................................................................................. 117  12.13 NOTICE ............................................................................................................................................................ 117  12.14 REPRESENTATIVES OF THE PARTIES ................................................................................................................ 118  12.15 CITY FREE TO NEGOTIATE WITH THIRD PARTIES ........................................................................................... 118  12.16 COMPLIANCE WITH MUNICIPAL CODE .......................................................................................................... 118  12.17 PRIVACY ........................................................................................................................................................... 119  12.18 PROPRIETARY INFORMATION, PUBLIC RECORDS ............................................................................................ 119  12.19 ENTIRE AGREEMENT ....................................................................................................................................... 119  12.20 SECTION HEADINGS ........................................................................................................................................ 119  12.21 REFERENCES TO LAWS AND OTHER AGREEMENTS ........................................................................................ 120  12.22 INTERPRETATION ............................................................................................................................................. 120  12.23 AGREEMENT .................................................................................................................................................... 120  Draft, March 13, 2012 vii City of Hermosa Beach 12.24 SEVERABILITY .................................................................................................................................................. 120  12.25 EXHIBITS .......................................................................................................................................................... 120  12.26 ATTORNEYS’ FEES ............................................................................................................................................ 120  Exhibits 1. Contractor’s Proposal 2. Initial Maximum Rates 3. Example Rate Adjustment Formula 4. City Litter and Recycling Collection Container Map 5. Corporate Guarantee 6. Contractor’s Faithful Performance Bond 7. Notary Certification Draft, March 13, 2012 -1- City of Hermosa Beach AGREEMENT This Agreement for Integrated Solid Waste Management Services (hereinafter the “Agreement”) is entered into this ___ day of ________, 2012, by and between the City of Hermosa Beach, California, (“City”) and _____________ (“Contractor”), for the collection, transportation, recycling, processing, and disposal of solid waste and other services related to meeting the goals and requirements of the California Integrated Waste Management Act. RECITALS WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989 (“AB 939”) (California Public Resources Code Section 49100 et seq.), has declared that it is in the public interest to authorize and require local agencies to make adequate provisions for solid waste handling within their jurisdictions; and, WHEREAS, pursuant to California Public Resources Code Section 49300 and 49500 through 49524 inclusive, the City has determined that the public health, safety, and well-being require that an exclusive franchise be awarded to a qualified company for the collection, transfer and transportation, recycling, processing, and disposal of solid waste and other services related to meeting the diversion goals required by AB 939, and other requirements of the California Integrated Waste Management Act; and, WHEREAS, City declares its intention of maintaining reasonable rates and quality service related to the collection, transfer and transportation, recycling, processing, and disposal of solid waste and other services; and, WHEREAS, in response to a Request for Proposals, Contractor has submitted a proposal to City and City selected the Contractor on the competitive advantages of that proposal over other proposals received by City; and WHEREAS, City and Contractor (“Parties”) hereto desire to enter said Agreement; and, WHEREAS, 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, the Resource Conservation and Recovery Act ("RCRA"), and the Comprehensive Environmental Response, Compensation and Liability Act Draft, March 13, 2012 -2- City of Hermosa Beach ("CERCLA"). City and Contractor desire to leave no doubts as to their respective roles and to memorialize that by 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 from premises in the City, transport for disposal, composting or other processing, and recycling of municipal solid waste which may contain hazardous substances; and further to confirm that as a material inducement to City entering into this Agreement, Contractor has agreed to fully indemnify City in connection with any claims, losses, liabilities, lawsuits or actions 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, and WHEREAS, Contractor has agreed, as part of this Agreement, acting as an independent contractor to provide such personnel, equipment and supplies as are necessary to ensure City complies with the requirements of Public Resources Code Section 49100, et seq., NOW, THEREFORE, in consideration of the premises above stated and the terms, conditions, covenants and agreements contained herein, the Parties do hereby agree as follows: Draft, March 13, 2012 -3- City of Hermosa Beach ARTICLE 1 DEFINITIONS The terms used in this Agreement shall have the meaning set forth in this Article 1. In the event a term is not defined in this Article 1, then it shall have the meaning set forth in the Hermosa Beach Municipal Code or in Division 30, Part 1, Chapter 2 of the California Public Resources Code (with precedence given to definitions in the Hermosa Beach Municipal Code over conflicting definitions contained in the Public Resources Code). Except as provided in Article 1, words beginning with lower case letters are being used with their common ordinary meanings, not as defined terms. Otherwise, the following capitalized words and terms shall have the following meanings: 1.1 AB 939 "AB 939" means the California Integrated Waste Management Act of 1989 (California Public Resources Code Section 40000 et seq.), as it may be amended from time to time. 1.2 Affiliate "Affiliate" means all businesses (including corporations, limited and general partnerships and sole proprietorships) which are directly or indirectly related to Contractor by virtue of direct or indirect ownership interest or common management shall be deemed to be "Affiliated with" Contractor and included within the term "Affiliates" as used herein. An Affiliate shall include a business in which Contractor owns a direct or indirect ownership interest, a business 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 Draft, March 13, 2012 -4- City of Hermosa Beach the basis of the percentage of voting interest or value which the ownership interest represents, whichever is greater. 1.3 Billings "Billings" or “Billing” or “Bill” means the statements of charges provided to Customers for services rendered by Contractor. 1.4 Bin “Bin” means a metal Container with hinged lids and wheels with a capacity of less than ten (10) cubic yards. 1.5 Bin Service “Bin Service” means Solid Waste Handling Services in which a Bin is used for the Collection of Solid Waste. 1.6 Bulky Items “Bulky Items” means Solid Waste that cannot and/or would not typically be accommodated within a Cart including specifically: furniture (including chairs, sofas, mattresses, and rugs); appliances (including refrigerators, ranges, washers, dryers, water heaters, dishwashers, plumbing, small household appliances and other similar items, commonly known as “white goods”); yard debris, Green Waste and small pieces of wood limited to one cubic yard of contained material; Electronic Waste; fluorescent bulbs; household batteries; and clothing. Bulky Items do not include car bodies, tires, Construction and Demolition Debris or items requiring more than two (2) persons to remove. Other items not specifically included or excluded above will be Collected provided that they are not more than eight (8) feet in length, four (4) feet in width, or more than one hundred fifty (150) pounds. In the event a question ever 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. Draft, March 13, 2012 -5- City of Hermosa Beach 1.7 CalRecycle “CalRecycle” means the State of California’s Department of Resources Recycling and Recovery, and, as this department was structured prior to January 1, 2010, the California Integrated Waste Management Board, or CIWMB. 1.8 Can “Can” means a plastic Container with a lid and without wheels, with a capacity between 30 and 35-gallons, also referred to as a barrel. Cans may be provided by Customers or by Contractor. 1.9 Can Service “Can Service” refers to Residential service provided in accordance with Section 4.1.2 in which Residential Customers provide their own Containers, such as Cans, bags or boxes, for Refuse Collection due to Cart Collection not being feasible. [OPTION 1] 1.10 Cart “Cart” means a plastic Container with a hinged lid and wheels serviced by an automated or semi-automated truck with a capacity of no less than 32- and no greater than 101-gallons. 1.11 City "City" means City of Hermosa Beach, California, a municipal corporation, and all the territory lying within the municipal boundaries of City as presently existing or as such boundaries may be modified during the term of this Agreement. 1.12 City Manager “City Manager” means the City Manager of the City of Hermosa Beach and his or her designee. 1.13 Collect/Collection "Collect" or "Collection" means to take physical possession, transport, and remove Solid Waste within and from City. Draft, March 13, 2012 -6- City of Hermosa Beach 1.14 Commercial "Commercial" refers to services performed at or for Commercial Premises. 1.15 Commercial Premises "Commercial Premises" means Premises located within the boundaries of the City, occupied or used for any purpose other than residential uses. It includes premises upon which business activity is conducted, including but not limited to retail sales, services, wholesale operations, manufacturing and industrial operations, but excluding Residential Premises upon which business activities are conducted when such activities are permitted under applicable zoning regulations and are not the primary use of the property. Notwithstanding any provision to the contrary herein in the Hermosa Beach Municipal Code or otherwise, for purposes of this Agreement, Premises upon which the following uses are occurring shall be deemed to be Commercial Premises: Assisted Living Facilities, Convalescent Homes, Dormitories, Extended Stay Motels, Group Residential Facilities, Group Care Facilities, Hotels, Hostels, and Motels. 1.16 Contractor "Contractor" means _______________, a corporation organized and operating under the laws of the State of ______________ and its officers, directors, employees, agents, companies and subcontractors, as permitted under Section 12.6. 1.17 Contractor's Proposal "Contractor's Proposal" means the proposal submitted by Contractor to City on _________, 2012 in response to a Request for Proposals dated _________, 2012. While there are provisions contained in Contractor’s Proposal, this Agreement supersedes Contractor’s Proposal and is the final written expression of the Parties’ Agreement. Contractor represents and warrants that all representations set forth in such proposal are true and correct. 1.18 Contractor Compensation "Contractor Compensation" means the revenue received by the Contractor from Customers and the City in return for providing services in accordance with this Agreement. Draft, March 13, 2012 -7- City of Hermosa Beach 1.19 Construction and Demolition Debris "Construction and Demolition Debris" means Solid Waste generated at a Premises that is directly related to construction or demolition activities occurring thereon. 1.20 Container "Container" means any and all types of Solid Waste receptacles, including Carts, Bins and Roll-off Boxes. 1.21 CPI “CPI” means the Consumer Price Index (CUUR0000SA0L1E) for All Urban Consumers (CPI-U), all items less food and energy index – U.S. city average. 1.22 Customer “Customer” means a Person receiving Solid Waste Handling Services from Contractor pursuant to the terms of this Agreement. 1.23 Dispose/Disposal "Dispose” or “Disposal" means the ultimate disposition of Solid Waste Collected by Contractor at a landfill or otherwise in full regulatory compliance. 1.24 Disposal Site(s) "Disposal Site(s)" means the Solid Waste handling Facility or Facilities utilized for the ultimate Disposal of Solid Waste Collected by Contractor. 1.25 Diversion "Diversion" means any combination of waste prevention (source reduction), recycling, reuse and composting activities that reduces waste disposed at landfills, provided such activities are recognized by CalRecycle as Diversion in its determination of the City’s Diversion rate and compliance with AB 939. CalRecycle may limit Diversion considered to be achieved through Transformation/waste-to-energy, use of Green Waste as alternative daily cover (“ADC”) and other activities. Draft, March 13, 2012 -8- City of Hermosa Beach 1.26 Electronic Waste “Electronic Waste” means electronic equipment, including stereos, televisions, computers and monitors, VCRs, microwaves and other similar items commonly known as “brown goods” and “e-waste”. 1.27 Environmental Laws "Environmental Laws" means all federal and state statutes, county, local 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 §9601 et seq.; the Resource Conservation and Recovery Act, 42 USC §6902 et seq.; the Federal Clean Water Act, 33 USC §1251 et seq.; the Toxic Substances Control Act, 15 USC §1601 et seq.; the Occupational Safety and Health Act, 29 USC §651 et seq.; the California Hazardous Waste Control Act, California Health and Safety Code §25100 et seq.; the California Hazardous Substance Account Act, California Health and Safety Code §25300 et seq.; the Porter-Cologne Water Quality Control Act, California Water Code §13000 et seq.; the Safe Drinking Water and Toxic Enforcement Act, California Health and Safety Code §25249.5 et seq.; and Hermosa Beach Municipal Code Chapter 8; as currently in force or as hereafter amended, and all rules and regulations promulgated there under. 1.28 Facility "Facility" means any plant or site, owned or leased and maintained, operated or used by Contractor for purposes of performing under this Agreement. 1.29 Green Waste "Green Waste" means tree trimmings, wood stumps, small pieces of wood, grass cuttings, dead plants, leaves, branches, flowers, plant stocks, and dead trees (not more than six (6) inches in diameter or forty-eight (48) inches in length) and similar materials. 1.30 Green Waste Processing Facility “Green Waste Processing Facility” means a permitted Facility where Green Waste is sorted, mulched or separated for the purposes of Recycling, reuse or composting. Draft, March 13, 2012 -9- City of Hermosa Beach 1.31 Gross Receipts “Gross Receipts” means any and all revenue received from Billings by City or Contractor, and compensation in any form, of Contractor or subsidiaries, parent companies or other Affiliates of Contractor, for the Collection and transportation of Solid Waste pursuant to this Agreement, in accordance with Generally Accepted Accounting Principles, including, but not limited to, Customer fees for Collection of Solid Waste, without subtracting Disposal fees, City fees or other fees or any other cost of doing business. Sales revenue from the sale of Recyclable Materials is excluded from Gross Receipts for the purpose of calculating Collector Fees. 1.32 Hazardous Substance "Hazardous Substance" shall mean any of the following: (a) any substances defined, regulated or listed (directly or by reference) as "Hazardous Substances", "hazardous materials", "Hazardous Waste", "toxic waste", "pollutants" 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 §9601 et seq. (CERCLA); (ii) the Hazardous Materials Transportation Act, 49 USC §1802, et seq.; (iii) the Resource Conservation and Recovery Act, 42 USC §6901 et seq.; (iv) the Clean Water Act, 33 USC §1251 et seq.; (v) California Health and Safety Code §§25115-25117, 25249.8, 25281, 25316, 25501 and 25501.1; (vi) the Clean Air Act, 42 USC §7901 et seq.; and (vii) California Water Code §13050; (b) any amendments, rules or regulations promulgated there under to such enumerated statutes or acts currently existing or hereafter enacted; and (c) any other hazardous or toxic substance, material, chemical, waste or pollutant identified as hazardous or toxic or regulated under any other applicable federal, state or local Environmental Laws currently existing or hereinafter enacted, including, without limitation, friable asbestos, polychlorinated biphenyl’s ("PCBs"), petroleum, natural gas and synthetic fuel products and by- products. 1.33 Hazardous Waste "Hazardous Waste" means all substances defined as Hazardous Waste, acutely Hazardous Waste, or extremely Hazardous Waste by the State of California in Health and Safety Code §25110.02, §25115, and §25117 or in the future amendments to or recodifications of such statutes or identified and listed as Hazardous Waste by the US Draft, March 13, 2012 -10- City of Hermosa Beach Environmental Protection Agency (EPA), pursuant to the Federal Resource Conservation and Recovery Act (42 USC §6901 et seq.), all future amendments thereto, and all rules and regulations promulgated there under. 1.34 Household Hazardous Waste (“HHW”) "Household Hazardous Waste" means Hazardous Waste generated at Residential Premises. 1.35 Materials Recovery Facility (“MRF”) "Materials Recovery Facility" means a permitted Solid Waste Facility where Solid Wastes or Recyclable Materials are sorted or separated for the purposes of Recycling, processing or composting. 1.36 Multi-Family Dwelling "Multi-Family Dwelling" means any building or lot containing five (5) or more dwelling units. Multi-Family Dwelling units generally receive Refuse Collection service through the use of shared Bins, but may use Carts. Service is not dependent upon unit count unless specifically stated. 1.37 Person "Person" means any individual, firm, association, organization, partnership, corporation, business trust, joint venture, the United States, the State of California, Los Angeles County, cities, and special purpose districts. 1.38 Premises "Premises" means any land or building in City where Solid Waste is generated or accumulated. 1.39 Rate Year "Rate Year" means the period July 1 to June 30, for each year during the Term of this Agreement. Draft, March 13, 2012 -11- City of Hermosa Beach 1.40 Recycle/Recycling “Recycle” or "Recycling" means the processing of Recyclable Materials for the purpose of returning them to the economy in the form of raw materials for new, reused, or reconstituted products. The Collection, transportation or Disposal of Solid Waste not intended for, or capable of, reuse is not Recycling. Recycling does not include use of Solid Waste for conversion to energy. 1.41 Recyclable Materials "Recyclable Materials" means Solid Waste that is Source Separated, has some potential economic value, and is set aside, handled, packaged, or offered for Collection in a manner different from Refuse in order to allow it to be processed for Recycling. 1.42 Refuse "Refuse" means putrescible and non-putrescible Solid Waste. 1.43 Residential "Residential" refers to services performed at and for Residential Premises, which include both Single-Family Dwellings and Multi-Family Dwellings. 1.44 Residential Premises “Residential Premises” means Premises upon which dwelling units exist, including, without limitation, Single Family Dwellings, apartments, boarding or rooming houses, condominiums and mobile homes. Notwithstanding any provision to the contrary herein, in the Hermosa Beach Municipal Code, or otherwise, for purposes of this Agreement, Premises upon which the following uses are occurring shall not be deemed to be Residential Premises, and rather shall be deemed to be Commercial Premises: Assisted Living Facilities, Convalescent Homes, Dormitories, Extended Stay Motels, Group Residential Facilities, Group Care Facilities, Hotels, Motels, and any other businesses not specifically listed at which residency is transient in nature and hence should be classified as Commercial Premises as determined by City on a case by case bases. Draft, March 13, 2012 -12- City of Hermosa Beach 1.45 Roll-off Box “Roll-off Box” means Solid Waste Collection Containers of 10 (ten) cubic yards or larger. 1.46 Single Family Dwelling "Single Family Dwelling" means a dwelling unit in a building containing fewer than five (5) Residential dwelling units. Single Family Dwelling units generally receive individual Can or Cart Refuse Collection service, but service is not dependent upon unit count unless specifically stated. 1.47 Solid Waste "Solid Waste" means all discarded putrescible and non-putrescible solid, semisolid, and liquid wastes, including Refuse, Construction and Demolition Debris, Bulky Items, Recyclable Materials, and Green Waste, or any combination thereof which are permitted to be disposed of in a Class III landfill, and which are included in the definition of “Non-hazardous Solid Waste” set forth in the California Code of Regulations. 1.48 Solid Waste Handling Services “Solid Waste Handling Services” means the Collection, transfer, transport, Recycling, processing, and Disposal of Solid Waste. 1.49 Source Separated "Source Separated" means the segregation by the Waste Generator of individual components of Solid Waste, which otherwise would become Refuse or garbage (such as glass bottles, metal cans, newspapers, plastic containers, etc.) into separate Container(s) for the purpose of allowing the Recycling of such materials. 1.50 State “State” means the State of California. 1.51 Transformation “Transformation” means incineration, pyrolysis, distillation, gasification, or biological conversion other than composting. Draft, March 13, 2012 -13- City of Hermosa Beach 1.52 Transfer Station “Transfer Station” means a Facility that receives Solid Waste from Collection vehicles and transfers the material to larger vehicles for transport to landfills and other destinations. Transfer Stations may or may not include MRFs, transferring residual Refuse (Refuse left after the sorting of Recyclable Materials) to landfills and Recyclable Materials, including Green Waste and/or Construction and Demolition debris, to processors, brokers or end-users. 1.53 Waste Generator "Waste Generator" means any Person as defined by the Public Resources Code, whose act or process produces Solid Waste as defined in the Public Resources Code, or whose act first causes Solid Waste to become subject to regulation. Draft, March 13, 2012 -14- City of Hermosa Beach ARTICLE 2 GRANT AND ACCEPTANCE OF FRANCHISE 2.1 Grant and Acceptance of Franchise, Indemnity of Award Subject to the terms and conditions of this Agreement (including but not limited to the exclusions set forth in Section 2.9 hereof) and applicable State laws, and to the rights of State, county and school district facilities to use a Solid Waste enterprise other than Contractor, City hereby grants to Contractor and Contractor hereby accepts from City, for the Term hereof, the exclusive franchise, right and privilege to provide Solid Waste Handling Services at all Residential and Commercial Premises within City (the “Franchise”). 2.2 Enforcement of Exclusivity Contractor shall be responsible for enforcing the exclusivity of this Agreement. City shall have the right to enforce the exclusivity provisions hereof if, in its absolute and sole discretion, it chooses to do so, but shall have no obligation to do so for the benefit of Contractor or otherwise. City additionally shall have the right, but not the obligation, to request that Contractor enforce the exclusivity provisions hereof. Contractor shall have an affirmative obligation to enforce such exclusivity provisions when requested to do so by City. For example, Contractor may be asked to notify City of inappropriately placed Containers and to place warning tags on such Containers. City may direct Contractor to impound such Containers in accordance with the City’s Municipal Code and may be entitled to charge Container owners City-approved fees for such impounding. If Contractor requests that City take administrative, law enforcement, or other legal action to protect Contractor’s exclusive rights, or otherwise enforce the exclusivity of this Agreement (including the adoption of any resolution or ordinance intended to facilitate the enforcement of the exclusive rights granted herein), Contractor shall reimburse City for all administrative, law enforcement, or other legal costs and fees related to any such action. Contractor’s obligation to reimburse City shall not apply to any criminal enforcement by City. Draft, March 13, 2012 -15- City of Hermosa Beach 2.3 Effective Date The “Effective Date” of this Agreement shall be the date which the City Council approves this Agreement. 2.4 Term of Agreement The term of this Agreement (the “Term”) shall be seven (7) years, commencing on January 1, 2013, and expiring December 31, 2019, subject to extension as provided in Section 2.5, as applicable. Notwithstanding the foregoing, the unexcused failure or refusal of Collector to perform any material term, covenant, obligation or condition contained in this Agreement shall give rise to the right, in favor of City, for earlier termination of this Agreement for cause in accordance with the procedures elsewhere contained herein. 2.5 City’s Option to Extend Term City shall have the sole option to extend the Term of this Agreement up to twenty-four (24) months following the Agreement Term under Section 2.4. The City may, upon at least ninety-day (90-day) advance written notice to the Contractor prior to the expiration of the Term of this Agreement, exercise this extension option. If City provides this extension notice, the Agreement will automatically renew monthly, up to a maximum of twenty-four (24) months. This extension period shall terminate, upon the earlier of: (i) the expiration of the aforementioned twenty-four (24) months, or (ii) the date City instructs Contractor that the contact will end, provided written notice of termination is provided to Contractor by City at least ninety (90) days prior to this termination date. 2.6 Representations and Warranties of Contractor Contractor hereby covenants, represents, and warrants the following to City for the purpose of inducing City to enter into this Agreement and to consummate the transaction contemplated hereby, all of which shall be true as of the date of this Agreement and as of the Effective Date: a) Contractor is wholly owned by ______________________, which is duly organized and validly existing as a ______________ under the laws of the State of ______________. Draft, March 13, 2012 -16- City of Hermosa Beach b) Neither the execution of this Agreement nor the delivery by Contractor of services nor the performance by Contractor of its obligations hereunder: (1) conflicts with, violates or results in a breach of any applicable law; (2) conflicts with, violates or results in a breach of any term or condition of any judgment, decree, agreement (including, without limitation, the certificate of incorporation of Contractor) or instrument to which Contractor is a party or by which Contractor or any of its properties or assets are bound, or constitutes a default under any such judgment, decree, agreement or instrument; or (3) will result in the creation or imposition of any encumbrance of any nature whatsoever upon any of the properties or assets of Contractor. c) There is no action, suit or other proceeding as of the date of this Agreement, at law or in equity, or to the best of Contractor’s knowledge, any investigation, before or by any court or governmental authority, pending or threatened against Contractor or ______ [parent/guaranteeing company] which is likely to result in an unfavorable decision, ruling or finding which would materially and adversely affect the validity or enforceability of this Agreement or any such agreement or instrument entered into by Contractor or ______ [parent/guaranteeing company] in connection with the transactions contemplated hereby, or which could materially and adversely affect the ability of Contractor to perform its obligations hereunder or which would have a material adverse effect on the financial condition of Contractor or ______ [parent/guaranteeing company] . This provision may be waived by the City acting through its City Manager. d) Contractor has no knowledge of any applicable law in effect as of the date of this Agreement that would prohibit the performance by Contractor of this Agreement and the transactions contemplated hereby. e) Contractor has made an independent investigation, satisfactory to it, of the conditions and circumstances surrounding this Agreement and the work to be performed by it, and is satisfied that those conditions and circumstances will not impair its ability to perform the work and provide the Collection services required by this Agreement. f) The information supplied by Contractor in all submittals made in connection with negotiation and execution of this Agreement, including all materials in Exhibits of this Agreement, and all representations and warranties made by Draft, March 13, 2012 -17- City of Hermosa Beach Contractor throughout this Agreement are true, accurate, correct and complete in all material respects on and as of the Effective Date of this Agreement. Inaccuracies in Contractor’s Proposal, such as material omissions of past and pending litigation as requested under the Request for Proposals through which this Agreement was procured, are grounds for termination of this Agreement. g) Contractor’s representative, designated in Section 5.2.3, shall have authority in all daily operational matters related to this Agreement. City may rely upon action taken by such designated representative as action of Contractor unless the actions taken are not within the scope of this Agreement. 2.7 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: a) Accuracy of Representations. 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. b) Absence of Litigation. There shall be no litigation pending in any court challenging the award of this Franchise to Contractor or the execution of this Agreement or seeking to restrain or enjoin its performance. This provision may be waived by the City, acting through its City Manager. c) Furnishing of Insurance, Bond, and Letter of Credit. Contractor shall have furnished evidence of the insurance, bonds and letter of credit required by Article 9, and shall comply with all ongoing requirements relating thereto. d) Contractor shall have paid the contracting fee to City, as provided in Section 3.1. 2.8 Delegation of Authority The administration of this Agreement by City shall be under the supervision and direction of City Manager's office and the actions specified in this Agreement, unless otherwise stated, shall be taken by the City Manager. This section shall in no way be interpreted to obviate required City Council action if so provided in the Hermosa Beach Municipal Code. Draft, March 13, 2012 -18- City of Hermosa Beach 2.9 Limitations to Scope Notwithstanding any provision to the contrary contained herein, the exclusive franchise, right and privilege to provide Solid Waste Handling Services at Premises within City granted to Contractor by this Agreement specifically excludes the following services, which services may be provided by Persons other than Contractor and which may be the subject of other permits, licenses, franchises or agreements issued or entered by City: a) The sale or donation of Source-Separated Recyclable Material by the Waste Generator to any Person or entity other than Contractor; provided, however, if the Generator is required to pay monetary or non-monetary consideration for the Collection, transportation, transfer, or processing of Recyclable Material, even if the Generator receives a reduction or discount in price (or in other terms of the consideration the Generator is required to pay), the transaction shall not be considered a sale or donation; b) Solid Waste, including Recyclable Materials and Green Waste, which is removed from any Premises by the Waste Generator, and which is transported personally by such Generator (or by his or her full-time employees) to a processing or Disposal Facility in a manner consistent with all applicable laws and regulations; c) Green Waste removed from a Premises by a gardening, landscaping, or tree trimming contractor, utilizing its own equipment, as an incidental part of a total service offered by that contractor, rather than as a hauling service; d) The Collection, transfer, transport, Recycling, processing, and disposal of animal remains from slaughterhouse or butcher shops for use as tallow; e) The Collection, transfer, transport, Recycling, processing, and disposal of by- products of sewage treatment, including sludge, sludge ash, grit and screenings; f) The Collection, transfer, transport, Recycling, processing, and disposal of Hazardous Substances, Hazardous Waste, Household Hazardous Waste and radioactive waste regardless of its source; g) The Collection transfer, transport, Recycling, processing, and Disposal of Construction and Demolition Debris; Draft, March 13, 2012 -19- City of Hermosa Beach h) The Collection of Refuse and/or Recyclables from public litter Containers (see Section 4.5.2 and Exhibit 4); i) The Collection, transfer, transport, Recycling, processing, and Disposal of Solid Waste generated from City-owned and/or operated premises, public works projects, City-sponsored events or other City-related activities, by City through City officers or employees in the normal course of their City employment; and, j) Solid Waste Handling Services for governmental agencies other than City, which may have facilities in City, but over which City has no jurisdiction in connection with the regulation of Solid Waste. 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, future enactments or developing legal trends 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. 2.10 City's Right to Direct Changes 2.10.1 General City may direct Contractor to perform additional services (including new Recycling or other Diversion programs, additional Solid Waste processing, etc.) or modify the manner in which it performs existing services or Bills for services. Pilot programs and innovative services which may entail new Collection methods, and different kinds of services and/or new requirements for Waste Generators are included among the kinds of changes which City may direct. Contractor acknowledges that State law may increase the Diversion requirement during the term of this agreement and Contractor agrees to propose services to meet such Diversion requirements. Contractor shall be entitled to an adjustment in its Contractor Compensation for providing such additional or modified services, including a profit factor equal to ten percent (10%) of the incremental cost of such additional or modified services. City may utilize cost components included in the Draft, March 13, 2012 -20- City of Hermosa Beach Contractor’s Proposal in calculating equitable rate adjustments. If City and Contractor cannot agree on compensation for new or additional services within ninety (90) days from the date City first requests a proposal from Contractor, then City may contract with other parties for such services, which shall be considered exempt from the exclusivity provisions of Section 2.1. 2.10.2 New Diversion Programs Contractor shall present, within thirty (30) days of a request to do so by City, a proposal to provide additional or expanded Diversion services. The proposal shall contain a complete description of the following: • Collection methodology to be employed (equipment, manpower, etc.). • Equipment to be utilized (vehicle number, types, capacity, age, etc.). • Labor requirements (number of employees by classification). • Type(s) of Containers to be utilized. • Type(s) of material to be Collected. • Provision for program publicity/education/marketing. • One-year projection of the financial results of the program's operations in an operating statement format, including documentation of the key assumptions underlying the projections, and the support for those assumptions. 2.11 Ownership of Solid Waste 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 Solid Waste Collected by Contractor in City. Rather, the Parties intend that whatever, if any, title in and to the Solid Waste that is Collected by Contractor which 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. Subject to the provisions of this Agreement, and Draft, March 13, 2012 -21- City of Hermosa Beach unless City exercises its rights to direct the location for Disposal and processing of Solid Waste, Contractor shall have the right to retain, Recycle, process, dispose of, and otherwise use Solid Waste Collected pursuant to the terms hereof in any lawful fashion or for any lawful purpose; and, further, shall have the right to retain any benefit resulting from its right to retain, Recycle, process, dispose of, or reuse the Solid Waste which it Collects. City’s right to redirect Solid Waste is not intended to impact Contractor’s right to retain Recyclables revenue pursuant to Section 4.2.4 of this Agreement. Ownership of Solid Waste shall transfer to Contractor when Customer places it at point of Collection. Pursuant to Section 4.8, City reserves the right to designate the Solid Waste Facilities, including the Disposal Sites, to be used by Contractor. If City directs Contractor to a Facility other than a Solid Waste Facility chosen by Contractor (or directs Contractor to change the amount of Solid Waste being delivered to a Facility), and in doing so it adversely affects the ability of Contractor to meet either or both of the requirements of Section 4.2.5 and/or Section 9.4, then in this event the City and Contractor shall meet and confer and mutually agree on revised obligations for Sections 4.2.5 and 9.4. In addition, if any such exercise by City serves to significantly change Contractor’s cost of Disposal, processing and transportation of Solid Waste, rates may be equitably adjusted. 2.12 Contractor Status Contractor represents and warrants that it is duly organized, validly existing and in good standing under applicable laws. It is qualified to transact business in the State of California and has the power to own its properties and to carry on its business as now owned and operated and as required by this Agreement. 2.13 Contractor Authorization Contractor represents and warrants that it has the authority to enter into and perform its obligations under this Agreement. The Board of Directors or partners of Contractor (or the shareholders, if necessary) have taken all actions required by law, its articles of incorporation, its bylaws or otherwise to authorize the execution of this Agreement. The Persons signing this Agreement on behalf of Contractor have authority to do so. Contractor shall authorize one employee for the City as a single point of contact for issues arising under this Agreement, and Contractor acknowledges and agrees that City Draft, March 13, 2012 -22- City of Hermosa Beach may expect and assume that this employee’s actions are taken on behalf of and with the full approval of the Contractor. 2.14 Permits and Licenses Contractor shall acquire and maintain all necessary permits and licenses for the Collecting, transporting, processing, and storing of Solid Waste including Recyclables, disposing of Solid Waste, and the Recycling of Recyclables as required under this Agreement. Failure to maintain all required permits shall be deemed a material breach of contract for which City may terminate this Agreement as provided in Section 11.1. Contractor must follow requirements of the Hermosa Beach Municipal Code. Draft, March 13, 2012 -23- City of Hermosa Beach ARTICLE 3 FEES PAID TO THE CITY In addition to any other consideration set forth herein, as part of its consideration for entering into this Agreement, and for the exclusive franchise, right and privilege to provide Solid Waste Handling Services as specified herein, Contractor shall provide the following: 3.1 Contracting Fee Contractor shall pay to City a “Contracting Fee” in a one-time lump sum payment of One Hundred Fifty Thousand Dollars ($150,000) within seven (7) days of execution of this Agreement to reimburse the City for costs it incurred in connection with entering this Agreement. 3.2 Collector Fee In consideration of the exclusive Franchise granted pursuant to this Agreement, the Contractor shall pay to the City a “Collector Fee,” equal to 10% of the Gross Receipts received by Contractor. See Section 3.5 for submittal requirements. 3.3 Administrative Fee To cover the cost of administering and managing the Franchise, the Contractor shall pay to the City an annual Administrative Fee in the amount of Fifty Thousand Dollars ($50,000), one twelfth of which to be paid monthly in accordance with Section 3.5. The Administrative Fee shall be adjusted annually, beginning with the January payment, by the percentage change in the Consumer Price Index for all Urban Customers (CPI-U), all items less food and energy – US City average for the twelve (12) month period ended the prior September. See Section 3.5 for submittal requirements. 3.4 AB 939 Fee In order to support City’s recycling efforts, Contractor shall remit to City an AB 939 Fee in an amount equal to twenty-five cents ($0.25) per Residential Cart/Can Customer per month, and twenty-five cents ($0.25) per cubic yard of Refuse collected for all other Customers, including Multi-Family Bin, Commercial Cart, Bin and Can and Roll-Off Draft, March 13, 2012 -24- City of Hermosa Beach Box Customers, for both permanent and temporary services, but excluding source separated Recyclable Material Collection. See Section 3.5 for submittal requirements. See approved rate schedule for AB 939 fees by service level. An example calculation of the monthly AB 939 Fee for a Bin Customer is as follows: a three (3) cubic yard Bin Collected five (5) times per week will result in an AB 939 fee of $16.25 per month ($0.25 per cubic yard x 3 cubic yards x 5 times per week x 4.33 weeks per month). 3.5 Timing and Submittal of Monthly Fee Payments On or before the fifteenth (15th) day of each month during the Term of this Agreement, Contractor shall remit the Collector Fee and the AB 939 Fee based upon services provided to City the previous month, and one-twelfth of the annual Administrative Fee. If the fees are not paid on or before the fifteenth (15th) day of the month, Contractor shall, along with fee payment, pay the maximum interest rate permitted by law on any balance not paid by the due date. Contractor shall prepare and submit a fee payment statement with each fee payment that includes receipts by sector and supporting fee calculations for each fee. Note that, as the Collector and AB 939 Fees are paid based upon the prior month’s services and receipts, a payment will be due the month following termination of the Agreement. This will not apply to the Administrative Fee, which payable each month beginning January 2013. 3.6 Future Fees In the event that City implements a new fee, Contractor shall be entitled to a rate adjustment in an amount sufficient to recover the fee from Customers. City may elect to have Contractor pay monthly, or on another schedule as City identifies. City may set deadlines and late fees, and additional fees would be subject to audit. Draft, March 13, 2012 -25- City of Hermosa Beach ARTICLE 4 DIRECT SERVICES 4.1 Refuse 4.1.1 General The work to be done by Contractor pursuant to this Agreement shall include, but not be limited to, the furnishing of all labor, supervision, equipment, materials, supplies, and all other items necessary to perform the services required. The enumeration of, and specification of requirements for, particular items of labor or equipment shall not relieve Contractor of the duty to furnish all others, as may be required, whether enumerated elsewhere in the Agreement or not. The work to be done by Contractor pursuant to this Agreement shall be accomplished in a thorough and professional manner so that all Customers are provided reliable, courteous and high-quality Solid Waste Handling Services 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 provided in this section, whether such other aspects are enumerated elsewhere in the Agreement or not. 4.1.2 Residential Cart/Can Refuse Collection Under Option 1: Contractor will supply each Residential Refuse Cart Customer with 96, 64 or 32-gallon Refuse Cart(s), as requested by Customer as described in Section 4.4.1.1. Residential Customers shall be charged based upon the number and size of Refuse Carts requested. Alternative “Can” Service - Residential Customers who cannot accommodate Carts due to space constraints and/or conditions otherwise preventing the use of Carts will continue to receive service using Customer-provided Refuse Containers, such as Cans, bags or boxes, for a flat monthly fee; this form of service shall be called “Can” service. If Contractor and Customer cannot agree on whether Can service is necessary, the City Manager shall make the final determination. Draft, March 13, 2012 -26- City of Hermosa Beach Contractor shall Collect Refuse delivered for Collection in accordance with this section not less than once per week. The designated Collection location of Containers, if disputed by the Customer or the Contractor, shall be determined by the City. Additionally, if in the City’s opinion the existing Collection location is inappropriate, the City may require the Customer and/or the Contractor to relocate the Collection location. Under Option 2: Contractor shall Collect an unlimited quantity of mixed waste once not less than once per week from Customer-provided Containers (such as Cans, boxes or bags). All Solid Waste Collected under this section shall all be processed to recover Recyclables before landfilling. Contractor shall guarantee a minimum of ____% recovery of all Solid Waste Collected under this section. The designated Collection location of Containers, if disputed by the Customer or the Contractor, shall be determined by the City. Additionally, if in the City’s opinion the existing Collection location is inappropriate, the City may require the Customer and/or the Contractor to relocate the Collection location. 4.1.3 Refuse Cart Overage Under Option 1: Residential Cart Customers may periodically generate more Refuse than will fit in the Refuse Cart(s). Residential Customers are therefore entitled to two (2) annual pickups per calendar year of material that does not fit in the Refuse Cart(s) at no additional charge. One pickup shall consist of up to the equivalent of three (3) large bags, boxes or barrels of Refuse. Additionally, Contractor shall Collect all additional Refuse placed out for Collection in the Residential Customer’s own Containers (bags, barrels, etc.) at no additional charge for two (2) weeks beginning each December 26. This service is limited to Refuse that could otherwise be placed in the Refuse Cart, and not Bulky Items which are Collected in accordance with Sections 1.6 and 4.1.15. Draft, March 13, 2012 -27- City of Hermosa Beach Residential Customers may be charged per pickup in accordance with the approved rate schedule for overage pickups above two (2) per year and outside the two-week period beginning December 26. Commercial Customers may request Cart overage Collections in accordance with the approved rate, but are not entitled to free overage collections. Under Option 2: This section will be deleted. 4.1.4 Walk-Out Service Walk-Out Service means that Contractor will remove Refuse, Recyclable and Green Waste Carts and, if applicable, Customer-provided Containers from Customer’s storage area, place them out for Collection, and return Carts and Customer-provided Containers to Customer’s storage area after Collection, ensuring that all doors or gates are closed securely. Contractor shall provide disabled Residential (excluding Bin) Customers with Walk- Out Service at no additional charge. In order to qualify as disabled under this Section, Customers must provide evidence that they are physically unable to move the Containers, such as a doctor’s note, or must otherwise obtain approval to receive such services from the City. Additionally, Walk-Out Service need not be provided if an able- bodied person resides with the disabled Customer. Customers may be asked periodically, but no more than once per year, to sign an affidavit that no able-bodied residents reside at the Premises. Able-bodied Customers may request Walk-Out Service for an additional charge in accordance with the approved rate schedule. 4.1.5 Bin Refuse Collection Contractor shall provide Bin Service to Residential Customers not receiving Cart or Can service, and Commercial Customers. Contractor shall Collect and remove all Refuse that is placed in Bins at least once per week, and more frequently if required to handle the waste generated at the Premises where the Bins are located. City shall make final determination as to the number and size of Containers, and frequency of Collection to be provided to Customers. Special consideration shall be given when determining the pickup areas to ensure that the flow of traffic is not impeded. Draft, March 13, 2012 -28- City of Hermosa Beach Contractor shall provide 1, 1.5, 2, 3, 4, 6 and 8 cubic yard Bins upon request. Contractor will service Bins equipped with compaction devices or “compactors” that attach to the Bins. The provision of the compaction device itself is outside of this Agreement. 4.1.6 Commercial Premises Cart Service Contractor shall offer Collection in 32, 64 or 96-gallon Refuse Carts to Customers at Commercial Premises that do not have space for a Bin. If Contractor and Customer have a disagreement as to whether a Refuse Cart is appropriate, or if City determines the Collection in a Refuse Cart causes health and safety or other concerns, City shall make the final determination as to whether Collection in a Refuse Cart may occur. 4.1.7 Overflowing Bins and Carts Customers that regularly produce more Refuse than their current level of service can accommodate may have their service level increased in accordance with the following procedure. Containers may be considered overflowing if Solid Waste rises above the top of the Container sufficiently that it is likely to fall out of the Container. First Incident in Three Month Period – If more material is placed for Collection than fits in a Containers (unless Collection of overage has been properly arranged under Section 4.1.3), Contractor shall photograph the overflowing Container, Collect the Solid Waste, and send to the Customer (at both the service and billing addresses) the picture and a letter instructing that additional instances may result in an increase in the level of service. Second Incident in Three Month Period – Upon the second event of an overfilled Container (unless Collection of overage has been properly arranged under Section 4.1.3) in a three-month period, Contractor shall photograph the overflowing Container, Collect the Solid Waste, and send to the Customer the picture and a letter instructing that a third incident in that same three month period may result in an increase in the level of service. Third Incident in Three Month Period – Upon the third event of an overfilled Containers (unless Collection of overage has been properly arranged under Section 4.1.3) in a three-month period, Contractor shall photograph the overflowing Container, Collect the Solid Waste, and send to the Customer the picture and a letter requesting that Customer increase its service level. If the Customer declines, Contractor may Draft, March 13, 2012 -29- City of Hermosa Beach petition City to permit Contractor to increase the service level to accommodate the higher demand for service. City approval is required prior to increasing a Customer’s service level without prior Customer consent. 4.1.8 Temporary Bin Service Contractor shall provide exclusive temporary Bin Service to Customers upon request. Contractor must deliver a temporary Bin to a Customer within forty-eight (48) hours of request (Sundays and holidays identified in Section 4.6.1.1 excluded). Rates for temporary Bin Service are listed separately in the approved rate schedule. 4.1.9 Scout Vehicles Scout vehicles are defined as vehicles that transport a Solid Waste Container to and from the point of Collection by a Collection vehicle. Customers receiving scout truck service immediately prior to the start of service under this Agreement will continue to receive this service. Contractor must receive written approval from the City prior to adding any Customer to, or removing any Customer from, the scout route. City’s decision shall be final as to which Customers will or will not receive this service. Contractor may continue to charge existing scout service Customers for this service, if it is operationally required to service the Bin. Other Customers may not be charged for scout service without advance written permission from the City, and such charge will only be approved if the Bin cannot otherwise be positioned for Collection, or if the service is requested by the Customer. 4.1.10 Bin Push-out Service Contractor shall maneuver Customers’ Bins to the point of Collection, and return the Bins to Bin enclosures or other storage locations. Company may only charge a push-out fee, included in the approved rate schedule, if the push-out distance is at least ten (10) feet from the front of the enclosure or other storage location to the point on the Bin closest to the storage location when positioned for Collection, and that this point of Collection is as close to the storage location as operationally feasible. If it is operationally feasible for the route Collection vehicles to Collect at a location close enough that this measurement does not reach ten feet, a fee will not be applied. In accordance with Exhibit 2, if a fee is permitted per this section, it may be applied for each fifty (50) feet the Bin must be moved; charged once for ten (10) to fifty (50) feet, Draft, March 13, 2012 -30- City of Hermosa Beach twice for fifty-one (51) to one hundred (100) feet, etc. Application of this fee to Customers not already being charged is subject to written approval of the City. A push-out and a scout charge may not both be applied for servicing the same Bin. 4.1.11 Locking Bins Contractor shall provide locking Bin Service (including providing the hasp and lock and servicing the lock) to Customers that request such service in accordance with the approved rate schedule. 4.1.12 Roll-off Box Service Contractor shall provide exclusive permanent and temporary Roll-off Box Collection service upon request. Contractor must deliver a temporary Roll-off Box to a Customer within forty-eight (48) hours of request (Sundays and holidays identified in Section 4.6.1.1 excluded). Contractor will provide standard 10, 30 and 40-cubic-yard standard Roll-off Boxes. The provision of compactor Roll-off Boxes, which are enclosed Containers attached to a compaction devise, is not included in this Agreement. Providing service to such compactor Roll-off Boxes is included. Permanent Roll-off Box service shall be Billed at a pull plus dump rate, meaning a flat rate for service plus a per ton rate for the Solid Waste Collected. Temporary Roll-off Box service shall be Billed at a rate inclusive of service and disposal or processing of up to seven (7) tons. Tonnage above seven (7) tons shall be billed at the permanent Roll-off Box per ton rate. Customer may be charged a per ton overweight charge for each ton over ten (10) in any Roll-Off Box load. If Contractor can determine that a load is greater than ten (10) tons prior to Collection, Contractor may instruct Customer to reduce the load to no more than ten (10) tons. 4.1.13 Extra Assistance in High Solid Waste Generating Commercial Areas Areas of the City, particularly the Downtown district, receive a significant increase in Solid Waste disposal on holiday weekends when Collection service might otherwise be Draft, March 13, 2012 -31- City of Hermosa Beach postponed. In the Downtown area, Contractor shall continue Collection despite holidays, shall provide extra pickups as needed to minimize overflowing Containers, and maintain cleanliness in and around Bin enclosures and Solid Waste Containers. Contractor shall proactively work with Customers to plan for surges in Solid Waste generation. Contractor shall work with Customers to minimize overflow from Bins and into enclosures on an ongoing basis. [ADDITONAL ASSISTANCE MAY BE ADDRESSED BASED ON PROPOSAL] 4.1.14 Shared Downtown Solid Waste Container Enclosure and Porter Service Porter Service – Contractor shall Collect all Solid Waste manually from Downtown area businesses that do not subscribe to individual Cart or Bin Refuse Collection service, and transport the Solid Waste to Bins and/or Roll-off Boxes for Collection and processing and/or Disposal by Contractor. Contractor shall supply a small vehicle to access individual businesses and manually Collect Solid Waste from Contractor-provided barrels (32-gallons in size unless otherwise approved by City Manager) using Contractor-provided liners (bags of at least 5 mm in thickness). Contractor shall Collect with sufficient frequency, and shall provide as many barrels and liners, as useful to prevent overflow of barrels. Contractor shall provide personnel and run this “porter” route between 4:00 a.m. to 12:00 p.m. and between 4:00 p.m. and 12:00 a.m. seven days per week, including holidays, with some Customers requiring multiple daily Collections. Contractor and Customers shall work together to adjust these service hours if alternative hours would better meet Customer needs; changes shall be subject to City Manager approval and City Manager shall make a final determination in event of a dispute. Contractor may assess fees for porter service in accordance with the approved rate schedule. This fee shall represent full compensation for vehicle, Container, liners, personnel and all other costs associated with provision of this service. Porter service fee shall be allocated by Contractor among Customers using this porter service, based upon Customer Solid Waste generation. City may adjust Solid Waste Container types and/or service levels, including transitioning to Roll-Off Compactors, with costs being adjusted in accordance with the approved rate schedule. City may request an increase or decrease in the customer base receiving porter service, may add additional enclosures, or make other service adjustments; if such service Draft, March 13, 2012 -32- City of Hermosa Beach changes make a significant impact in the cost of providing service, the porter service fee shall be adjusted to reflect the actual change in costs. Shared Solid Waste Containers in Downtown District – Customers in the Downtown business district receiving porter service share Solid Waste Containers due to space constraints on using individual Collection Containers. Contractor shall determine shared Container Collection costs in accordance with the approved rate schedule and shall allocate the cost to participating Customers based upon usage. This allocated Solid Waste Collection fee shall be identified on the Customer’s invoice separately from the allocated porter service fee. Dispute of Allocation of Porter Service and Shared Collection Costs - If Customer and Contractor dispute the allocation of porter fees or shared Solid Waste Collection costs, Contractor shall provide Solid Waste Collection reports to the City Manager identifying the estimated quantity of Solid Waste Collected by Customer versus total Solid Waste Collected, based upon capacity, and the City Manager’s determination as to the allocation shall be final. Reallocation of these costs among Customers shall be done only upon request by, or with the approval of, the City. Reasons for reallocation may include a significant shift in the waste stream due to a change in mix of Customers or vacancy. Enclosure Access and Cleaning – Contractor shall monitor and control access to the enclosure located at Beach Drive and 11th Street that houses Solid Waste Containers used to service the Downtown area businesses. Additional collection containers, such as for grease collection, may be housed in this enclosure, and access will be provided to Customers paying for the shared Collection service and to third parties hired to provide collection of grease or other materials from the enclosure. Contractor is responsible for enclosure cleanliness and shall steam clean this enclosure, in accordance with all NPDES regulations, reclaiming water, a minimum of three times per week, or more frequently if needed to control cleanliness of enclosure. Contractor is responsible for monitoring and maintaining cleanliness of adjacent areas used to place other Solid Waste Containers, including Recycling Bins. Participation in Shared Enclosure Collection and Porter Service – If there is a dispute between a Customer and Contractor as to whether a business is to participate in porter service and in sharing Collection services and service costs, or if the City Manager otherwise determines a change is warranted for health and safety or other reasons, City Manager shall make the final determination as to participation. Draft, March 13, 2012 -33- City of Hermosa Beach 4.1.15 On-Call Bulky Item Pickup Contractor shall provide Bulky Item pickup service to all Residential Customers (including both Cart and Bin Customers) on a regularly scheduled collection day. Each Residential Customer shall be entitled to two (2) Bulky Item pickups per dwelling unit per calendar year at no additional charge. Customers may put out up to three (3) cubic yards at each pickup. Contractor shall Collect all Bulky Items as defined in Section 1.6 including items referred to as Electronic Waste. The following provisions shall apply to this program: • No single item that cannot be handled by two (2) workers will be accepted. • The following items will not be picked up: Hazardous Substances, Hazardous Waste, including waste oil or anti-freeze. (For the purposes of this section, universal wastes such as fluorescent bulbs, household batteries, and televisions, monitors and other items referred to as Electronic Waste are not considered hazardous and will be Collected by and disposed of in accordance with this section as well as Sections 4.1.16 and 4.1.17 by Contractor.) Residential Customers that exceed the number of free Bulky Item pickups, and all Commercial Customers, may receive Bulky Item Collection under the same terms for a fee, in accordance with the approved rate schedule in Exhibit 2. 4.1.16 Bulky Item Diversion Bulky Items Collected by Contractor in accordance with Section 4.1.15, 4.1.17 and 4.5.6, or otherwise Collected under this Agreement, may not be landfilled or disposed of until the following hierarchy of Diversion efforts has been followed by Contractor: 1) Reuse as is; 2) Disassemble for reuse or Recycling; 3) Recycle; 4) Dispose. Draft, March 13, 2012 -34- City of Hermosa Beach This hierarchy is intended to preclude the use of front or rear loading packer vehicles for Bulky Items, unless the compaction mechanism is not used to compact the Bulky Items, unless such items have been designated for Disposal. 4.1.17 Disposal of Electronic and Other Special Wastes Contractor shall divert waste requiring special handling, such as Electronic Waste Collected in accordance with Sections 4.1.15, 4.1.16 or 4.5.6, or by other means under this Agreement, by taking these goods to a properly permitted Facility, and not by landfilling. Contractor may encourage Customers through public education materials to bring small items requiring special handling, such as fluorescent bulbs or batteries, to a local HHW drop-off center, but will properly process such material received through the provision of services under this Agreement at no additional charge. 4.1.18 Optional On-Call Household Hazardous Waste Collection and Disposal [TO BE COMPLETED BASED ON PROPOSAL] 4.1.19 Food Waste Program Option City reserves the right to require Contractor to provide a Residential and/or Restaurant Food Waste diversion program, with parties to negotiate an applicable rate adjustment for such service at that time. [MAY BE REVISED BASED ON PROPOSAL] 4.1.20 Annual Document Shred Day Contractor will conduct one (1) shredding event per calendar year, on a City-approved day, at a City-provided location at no additional cost. City will inform Contractor of the time at which each event will begin, and each event shall last for 8 (eight) hours. Contractor shall be on-site for a sufficient time before and after the event to set up and clean up. Contractor shall provide staff and equipment to Collect all paper delivered by anyone that resides or operates a business in the City. Contractor will shred paper in manner that guarantees confidentiality and destruction of the documents, and diverts the shredded material from landfilling. Contractor will publicize the event through its mailers, contacting local business groups and placing local ads. Draft, March 13, 2012 -35- City of Hermosa Beach 4.2 Recycling 4.2.1 Residential Cart Recycling Collection Under Option 1: Contractor shall provide all Customers receiving Cart Refuse Collection with a 96, 64 or 32-gallon Cart for Collection of Recyclable Materials (“Recycling Cart(s)”), and shall Collect all Recyclable Materials placed therein for Collection not less than once per week. Contractor shall Collect Recyclable Materials from each Customer on the same day as Customers’ Refuse Cart is Collected. Customers receiving Can Collection under Section 4.1.2 may use hauler-provided Blue Cans (“Recycling Cans”). Recycling collection will be provided at no charge to the Residential Cart/Can Customers. Customers that regularly fill their Recycling Cart(s)/Can(s) may request additional Recycling Cart(s)/Can(s) at no additional charge. Contractor shall have a Recycling program whereby it, at a minimum, Collects all materials that can be recovered at the local processing Facility used by Contractor. Contractor will update public education materials accordingly as new items are added to those recovered by the Facility. Under Option 2: This section would be deleted. 4.2.2 Commercial Recyclables Collection Contractor shall provide Recycling services to Multi-Family Bin and Commercial Customers at rates no higher than 50% of comparable Refuse Collection rates for the same size Container and Collection frequency, in accordance with the approved rate schedule. Contractor shall assist the City in meeting mandatory Commercial Recycling program requirements at no additional charge, including providing reporting that may be required. Contractor shall contact all Bin and permanent Roll-off Box Customers within the first twelve (12) months of the Agreement in an effort to establish Recycling programs. Contractor shall provide a reporting of these contacts, including whether a Recycling program was implemented as a result, and/or if the Customer indicated it already has a Recycling program in place, either through Contractor or a third party, Draft, March 13, 2012 -36- City of Hermosa Beach and any other information that may assist the City in meeting the State’s mandatory Commercial Recycling program requirements. Upon request, Contractor shall provide City with a list of Residential Bin Customers, and all Customers generating the State’s threshold for participation in mandatory Commercial Recycling (currently four-cubic-yards or more of Solid Waste generated per week), that do not subscribe to a Recycling program offered by Contractor or, if known, a third-party. 4.2.3 Warning Notice Contractor shall place a red tag or other warning notice approved by the City on all Refuse, Recyclable Material or Green Waste loads that are contaminated, indicating to the Customer why the load was not Collected and, if applicable, diverted, or if the Recycling or Green Waste Container was sufficiently contaminated that it had to be Collected as Refuse, and providing Contractor’s phone number. For Customers with off-site management such as small apartment buildings, Contractor shall also mail a copy of the warning to the Customer’s Billing address. Contractor shall notify City on a monthly basis of any warning notices issued pursuant to this section, and shall provide copies of such warnings to City upon request. With prior written City authorization, Contractor may remove Recycling and Green Waste Containers from habitual contaminators that have received a total of three (3) warnings on a Container in any six- month period. Recycling and Green Waste Containers will be returned after six (6) months, or upon direction of the City, or if there is a change of occupancy. Contractor will visually inspect the contents of Residential Refuse Carts and, if significant Recyclable Materials are found, leave a notice educating Customer to better separate Recyclable Materials from Refuse. [This paragraph to be deleted under Option 2.] 4.2.4 Marketing and Sale of Recyclable Materials Contractor shall be responsible for marketing and sale of all Recyclable Materials Collected pursuant to this Agreement. Contractor may retain revenue from the sale of Recyclable Materials, and shall report the amount of such revenues to City upon request. Draft, March 13, 2012 -37- City of Hermosa Beach 4.2.5 Minimum Recycling Requirements Contractor shall divert from landfilling a minimum of ______% of all Solid Waste it Collects under this Agreement. Recycling of materials not Collected by the Contractor is not to be counted towards meeting this requirement. For the purposes of this section, diversion includes Recycling, Transformation and other forms of converting Solid Waste into energy to the extent that such diversion is accepted by the State toward meeting the City’s diversion goal under AB 939. 4.2.6 Construction and Demolition Debris Diversion Contractor shall divert a minimum of 70% of all Construction and Demolition Debris Collected. Contractor will bring all loads of mixed Construction and Demolition Debris to a construction and demolition debris processing facility for separation and recovery of this material. 4.3 Green Waste Program 4.3.1 Single Family Green Waste Collection Under Option 1: Contractor shall provide all Customers receiving Cart Refuse Collection who opt to receive Green Waste service with 96, 64 or 32-gallon Cart(s), as requested, for Collection of Green Waste (“Green Waste Cart(s)”). Green Waste service shall only be provided using Carts, not Cans. See Section 4.4.1.1 for Cart distribution. Customers shall be charged for Green Waste Cart Collection based upon the number and size of Green Waste Carts requested in accordance with the approved rate schedule. Contractor shall Collect all Green Waste placed in Green Waste Carts, as well as all Green Waste bundled as set forth below, and put out for Collection by Customers paying for service not less than once per week on the same day as Refuse Collection. Contractor shall, at a minimum, Collect and divert the types of Green Waste defined in Section 1.29. Draft, March 13, 2012 -38- City of Hermosa Beach Contractor shall only be obligated to Collect Green Waste set out for Collection in bundles if bundles are each a maximum of four (4) feet long and eighteen (18) inches in diameter. Under Option 2: Green Waste Collection shall be provided at no additional charge to Customers. Contractor shall only be obligated to Collect Green Waste set out for Collection in bundles if bundles are each a maximum of four (4) feet long and eighteen (18) inches in diameter. [SECTION 4.3.1 TO BE REVISED BASED UPON PROPOSAL] 4.3.2 Holiday Tree Collection Program Contractor shall operate an annual holiday tree Collection program, Collecting all holiday trees placed out for Collection on Collection day by Residential Cart or Bin Customers for a minimum of three weeks following December 25. After this period, trees will be Collected as Bulky Items under Section 1.6. Trees up to six (6) feet in length will be Collected and diverted without Customers needing to cut them. Contractor may request that Customers with larger trees cut the trees to pieces no longer than six (6) feet. In addition to the above curbside program, Contractor shall provide three (3) roll-off boxes for tree drop-off at City-specified locations during the three (3) weeks following December 25. Contractor will divert all holiday trees from landfilling, with the exception of trees that cannot be diverted due to flocking, tinsel or ornaments. 4.3.3 End Uses for Green Waste Contractor shall divert Green Waste materials Collected through weekly Cart and bundle Collection, and holiday tree Collection from Disposal. Contractor must provide end uses for Green Waste that maximize Diversion credits for City according to regulations established by CalRecycle. Green Waste may be used as alternative daily cover at landfills, or “ADC,” only to the extent that the City will get full Diversion credit for its use. Contractor is responsible for monitoring how the Green Waste will be Draft, March 13, 2012 -39- City of Hermosa Beach diverted at selected facilities and for selecting alternative facilities if necessary to ensure full Diversion credit. Failure to do so places the Contractor in default. City has the option, but not obligation, to direct Contractor where to deliver the material. 4.3.4 Backyard Compost Program Contractor shall offer composting bins and worm bins to each Residential Customer that requests one, and bill the Customer a co-pay in an amount to be determined by City. Contractor shall obtain written City approval prior to ordering bins, and City may select the bins. The difference between the amount billed to the Customer and the actual cost of the bin to the Contractor (excluding delivery or other associated costs) shall be reimbursed to Contractor by the City. City may inform Contractor as to an annual cap or overall cap on the number to be distributed. At no additional cost, Contractor shall offer composting classes at least twice per year, and will create and make available a brochure that educates Customers on composting. 4.4 Cart Selection, Distribution and Exchanges 4.4.1 Carts 4.4.1.1 Residential Container Distribution Under Option 1: All Carts and Contractor-provided Cans shall be new at the start of service. Contractor shall mail a return postage paid postcard and information describing the new rate structure and Container options to all Residential Cart Customers. Contractor must obtain City approval of post card and information to be sent prior to distribution. Postcard will provide Customers with an opportunity to select the size and number of Refuse, Recycling and Green Waste Carts to be delivered. If a selection is not made, Customers will receive one 64-gallon Refuse Cart and one 64- gallon Recycling Cart in areas where Customers can generally accommodate 64-gallon Carts, and one 32-gallon Refuse Cart and one 32-gallon Recycling Cart in agreed-upon areas where most Customers are unable to accommodate a larger Cart. No Green Waste Carts will be distributed to Customers who did not request one. Draft, March 13, 2012 -40- City of Hermosa Beach After initial Cart distribution, Customers may request one (1) Cart exchange at no charge within the six (6) months of the distribution, and once per year thereafter. After one (1) exchange per year at no charge, Customers may request Cart exchanges in accordance with the approved rate schedule. One Cart exchange includes all Cart adjustments requested at one time, and multiple Carts and Cart types (Refuse, Recycling, Green Waste) may be exchanged. Under Option 2: Contractor shall mail a return postage paid postcard describing the availability of a Green Waste Container to all Residential Customers. Contractor must obtain City approval of post card and information to be sent prior to distribution. Postcard will provide Customers with an opportunity to request Green Waste service. Green Waste Containers may also request a Green Waste Containers at a later date even if not initially requested. 4.4.1.2 Removal of Existing Containers Upon and after distributing new Refuse, Recycling and Green Waste Carts, Contractor shall remove, and Recycle to the extent possible before Disposing, all Customer- provided Cans, if Customer does not intend to retain the Cans. Contractor shall establish and advertise a system whereby Customers can indicate what Cans should and should not be Collected. Contractor is responsible for all costs associated with Container collection and Disposal or Recycling. Contractor may retain any scrap value received from the Recycling of collected Containers. 4.4.1.3 Cart Design Requirements The Carts shall be manufactured by injection or rotational molding and meet the Cart design and performance requirements as specified below. All Carts selected shall be subject to City approval. 4.4.1.4 Capacity Contractor shall provide Carts in 96-, 64- and 32-gallon sizes for Refuse, Recycling, and Green Waste Carts. Section references to Cart sizes of 32, 64 and 96-gallons are approximate. Acknowledging the different sizes provided by the various Cart Draft, March 13, 2012 -41- City of Hermosa Beach manufacturers, the Carts shall be uniform in appearance and must conform to the following ranges in size:  30 to 35-gallons,  60 to 70-gallons, and  90 to 101-gallons. 4.4.1.5 Cart Handles The Cart handles and handle mounts may be an integrally molded part of the Cart body or molded as part of the lid. The Cart handles will provide comfortable gripping area for pulling or pushing the Cart or lifting the lid. Pinch points are unacceptable. 4.4.1.6 Cart Lid Each Container shall be provided with a lid that continuously overlaps and comes in contact with the Container body or otherwise causes an interface with the Container body that simultaneously: • Prevents the intrusion of rainwater, rodents, birds, and flies; • Prevents the emission of odors; • Enables the free and complete flow of material from the Container during the dump cycle without interference with the material already deposited in the truck body or the truck body itself and its lifting mechanism; • Permits users of the Container to conveniently and easily open and shut the lid throughout the serviceable life of the Container; • The lid (and body) must be of such design and weight that would prevent an empty Container from tilting backward when flipping the lid open; and, • The lid shall be hinged to the Cart body in such a manner so as to enable the lid to be fully opened, free of tension, to a position whereby it may rest against the backside of the Container body. Draft, March 13, 2012 -42- City of Hermosa Beach 4.4.1.7 Cart Colors The Refuse, Recycling and Green Waste Carts will be differentiated by color. The colors shall be colorfast and resistant to fading as a result of weathering or ultraviolet degradation. Color must be uniform within each Container, including replacement Carts distributed throughout the Term. Refuse Carts will be black. Recycling Carts will be blue. Green Waste Carts will be green. 4.4.1.8 Cart Markings Carts shall be hot stamped. All Cart markings must be approved by City prior to ordering Carts. Graphics indicating which materials may and may not be placed in each Cart and instructions on how to properly dispose of HHW, shall be included on the Cart lid. Cart information shall be bilingual in English and Spanish. Labels shall include Contractor’s name and phone number, and the phone number for the proper disposal of HHW and Bulky Items. 4.4.2 Cart Performance Requirements All Carts shall be designed and manufactured to meet the minimum performance requirements described below. 4.4.2.1 Cart Load Capacity Depending on the capacity, the Carts shall have a minimum load capacity as noted below without Container distortion, damage, or reduction in maneuverability or any other functions as required herein. Cart Size (Gallons) Minimum Load Capacity (LBS) 90-101 200 60-70 130 30-35 70 Draft, March 13, 2012 -43- City of Hermosa Beach 4.4.2.2 Cart Durability Carts shall remain durable, and at a minimum, shall meet the following durability requirements to satisfy their intended use and performance, for the term of this Agreement: • Maintain their original shape and appearance; • Be resistant to kicks and blows; • Require no routine maintenance and essentially be maintenance free; • Not warp, crack, rust, discolor, or otherwise deteriorate over time in a manner that will interfere with the intended use; • Resist degradation from ultraviolet radiation; • Be incapable of penetration by biting or clawing of household pets (i.e., dogs and cats); • The bottoms of Cart bodies must remain impervious to any damage that would interfere with the Cart’s intended use after repeated contact with gravel, concrete, asphalt or any other rough and abrasive surface; • All wheel and axle assemblies are to provide continuous maneuverability and mobility as originally designed and intended; and, • Resist degradation by other airborne gases or particulate matter currently present in the ambient air of the City. 4.4.2.3 Chemical Resistant Carts shall resist damage from common household or Residential products and chemicals. Carts, also, shall resist damage from human and animal urine and feces. 4.4.2.4 Stability and Maneuverability Carts shall be stable and self-balancing in the upright position, when either empty or loaded to the maximum design capacity with an evenly distributed load, and with the lid in either a closed or open position. Draft, March 13, 2012 -44- City of Hermosa Beach Carts shall be capable of maintaining the upright position in sustained or gusting winds of up to twenty-five (25) miles per hour as applied from any direction. Carts shall be capable of being easily moved and maneuvered, with an evenly distributed load equal in weight to its maximum design capacity on a level, sloped or stepped surface. 4.4.2.5 Lid Performance Cart lid assemblies shall meet the following minimum requirements: • Prevent damage to the Cart body, the lid itself or any component parts through repeated opening and closing of the lid by residents or in the dumping process as intended; • Remain closed in winds up to twenty-five (25) miles per hour from any direction. All lid hinges must remain fully functional and continually hold the lid in the original designed and intended positions when either opened or closed or any position between the two extremes; and, • Lid shall be designed and constructed such that it prevents physical injury to the user while opening and closing the Cart. 4.4.2.6 Reparability Minor cracks, holes, and other damages to hinges, wheels, axle, hardware, and other component parts shall be readily repairable by Contractor personnel. All repairs must restore the Container to its full functionality to meet the design and performance requirements as set for herein. 4.4.3 Cart Ownership and Maintenance Responsibilities All Carts that are distributed by Contractor under this Agreement remain the property of the Contractor at the end of the Agreement term. The Contractor shall be responsible for Cart repair and maintenance, and replacing lost, stolen or damaged Carts within three (3) business days at no additional charge to the Customer or to the City. Graffiti shall be removed or the Cart replaced within twenty-four (24) hours of request by City or Customers. However, the Contractor may charge, subject to City approval, the Customer for repairing or replacing a Cart if the damage was due to the Customer’s Draft, March 13, 2012 -45- City of Hermosa Beach willful negligence or abuse. In no event shall this charge be greater than the Contractor’s actual cost for replacement parts or the new Cart. 4.4.4 Bins Contractor shall provide Customers with Bins for Collection of Solid Waste. Customers may obtain Bin compactors and Roll-off compactors from either Contractor or a third party; the leasing of such equipment is outside the scope of this Agreement. Contractor shall maintain its Bins in a clean, sound condition free from putrescible residue. Bins shall be constructed of heavy metal, or other suitable, durable material, and shall be watertight and well painted. Wheels, forklift slots, and other appurtenances, which were designed for movement, loading, or unloading of the Bin, shall be maintained in good repair. Contractor shall inspect, and if necessary or requested by the Customer, clean or replace all Containers once per year at no charge. Contractor shall perform cleaning or replacement of Bins more frequently if necessary, in accordance with the approved rate schedule, to prevent a nuisance caused by odors or vector harborage. Customer may request additional cleanings in accordance with the approved rate schedule. Contractor shall remove graffiti at no additional charge from any Bin within twenty-four (24) hours of request by City or Customers. All Bins provided by Contractor shall remain the property of Contractor. Each Bin placed in the City by the Contractor shall have the name and phone number of the Contractor in letters not less than three (3) inches high on the exterior of the Bin so as to be visible when the Bin is placed for use. Contractor shall repaint Bins upon City request. 4.4.5 Roll-off Boxes The Contractor shall provide clean Roll-off Boxes, free from graffiti, equipped with reflectors, and shall have the name and phone number of Contractor in letters not less than three (3) inches high on the exterior of the Roll-off Box so as to be visible when the Container is placed for use. Contractor shall properly cover all open Roll-off Boxes during transport as required by the State Vehicle Code. Graffiti shall be removed within twenty-four (24) hours of request by City or Customers. All Roll-Off Boxes provided by Contractor shall remain the property of Contractor. Draft, March 13, 2012 -46- City of Hermosa Beach 4.5 City Services 4.5.1 City Facilities Collection Contractor shall Collect and dispose of all Refuse, Recyclable and Green Waste material put in Containers for Collection at Premises owned and/or operated by the City now and in the future at no charge, including no charge for locking Bins, scout service, push- out service or other special services. Contractor shall ensure a sufficient number of Solid Waste Containers are provided at all City facility locations to meet Collection needs. Service levels and number of facilities serviced may increase during the Term of this Agreement without any additional compensation paid to the Contractor. Such Premises include, but are not limited to, City Hall, City offices, parks, community facilities, City yard, public litter and Recycling Containers (see Section 4.5.2), and street maintenance operations. Collections shall be scheduled at a time mutually agreed upon by Contractor and City. Construction and demolition debris collected from City facilities and projects must be processed in accordance with Section 4.2.6 for maximum diversion credit at no additional charge. Street sweepings, as placed in a Container at the City yard by the street sweeping company, shall be collected and Disposed by the Contractor at no additional charge. Contractor shall provide in-office Recycling Containers at all City facilities, including but not limited to the fire station and community center, upon request, including desk- side Recycling Containers and larger cans for Collection in common areas. 4.5.2 City Litter Containers Prior Consolidated-Serviced City Litter Containers Beginning January 1, 2013, Contractor shall service all City Refuse and Recycling public litter Containers identified in Exhibit 4 as Recycling and Refuse Containers previously managed by Consolidated at the following minimum frequencies: A. At Least Once Per Day - Collect all Refuse Containers, between Memorial Day weekend and Labor Day, located along the beach, along Pier Avenue west of Ardmore, and in the Downtown Pier area between 10th Street and 15th Street. Draft, March 13, 2012 -47- City of Hermosa Beach B. At Least Twice Per Week – Collect all Recycling Containers, between Memorial Day weekend and Labor Day, located along the beach, along Pier Avenue west of Ardmore, and in the Downtown Pier area between 10th Street and 15th Street. C. At Least Once Per Week – Above referenced Containers from after Labor Day until immediately before Memorial Day weekend, and all other Refuse and Recycling Containers. D. Holiday Service – Contractor’s servicing of all City Litter Containers includes servicing on holidays, with the exception that, until July 1, 2013, Athens will continue to Collect on holidays from the Strand Containers from Herondo to 10th Street and from 15nd to 35nd Street, while Contractor will provide all other servicing of these Containers as noted above. See “G” below. Athens and True Green-Serviced Litter Containers Beginning July 1, 2013, Contractor shall assume Collection responsibility for all Refuse and Recycling public litter Containers identified in Exhibit 4 as serviced by other parties (True Green and Athens – see Exhibit 4 for identification of specific Containers); the third-party Collection agreements expire June 30, 2013. These Containers shall be Collected at the following minimum frequencies: E. At Least Five Days per Week - Containers on pier. F. At Least Seven Days per Week – All other City litter Containers previously serviced by Athens and True Green. G. Holidays - Athens will continue to collect on holidays from the Strand Containers from Herondo to 10th Street and from 15nd to 35nd Street until June 30, 2013, while Contractor Collects on all other days. Beginning July 1, 2013, Contractor shall Collect from these Containers on holidays as well. City will provide Containers. Contractor shall provide all liners necessary to provide Collection service. Contractor is responsible for additional Collections as necessary to prevent Container overflow at no additional charge, including more frequent Collections on holiday weekends. City may add additional Recycling Container Collections at no additional charge; a Recycling Container may be paired with each litter Container in distribution. City may increase the number of Refuse Containers to Draft, March 13, 2012 -48- City of Hermosa Beach be Collected by Contractor up to 10% above the number included in Exhibit 4 at no additional charge. Contractor and City shall negotiate in good faith for the servicing of additional Containers above this limit, in the future at the request of City. City reserves the right to have a third party service additional Containers, both prior to July 1, 2013 and subsequently. Solid Waste Collected by third-parties from City public Refuse and Recycling Containers is delivered to the City facilities for processing and Disposal by Contractor at no additional charge as part of City facilities Collection. 4.5.3 School Facilities Collection Contractor shall Collect and dispose of all Refuse, Recyclable and Green Waste material put in Containers for Collection at all public school facilities at no charge, including no charge for locking Bins, scout service, push-out service or other special services. Service levels and number of facilities serviced may increase during the Term of this Agreement without any additional compensation paid to the Contractor. Collections shall be scheduled at a time mutually agreed upon by Contractor and City. 4.5.4 Special Events Contractor shall provide litter/Recycling boxes and liners for Refuse and Recyclables Collection to City upon request at no additional charge for use at all City-sponsored and select other in-City events, including but not limited to:  New Year’s Eve (not event, to address increased pedestrian activity);  California Coastal Cleanup;  Sunset Concert Series;  Ark Walk;  St. Patrick’s Day Parade; and,  Surfer’s Walk of Fame. Recycling boxes should be easily distinguishable from Refuse boxes, and labeled to facilitate proper use by event participants. City crews may transport waste from these events and other in-City events to existing Bins and Roll-Off Boxes located at City yard or parks for servicing by Contractor under Section 4.5.1. If events are not listed in this section or otherwise sponsored by the City, Contractor may charge for litter boxes and liners in accordance with the approved rate schedule. Draft, March 13, 2012 -49- City of Hermosa Beach 4.5.5 Emergency Collection and Disposal Service Contractor will assist City at the City’s request with emergency Collection and Disposal service (in the event of major disaster, such as an earthquake, storm, riot or civil disturbance), or as otherwise determined necessary by the City, by providing Collection equipment and drivers normally assigned to City. Contractor may charge City for actual Disposal costs plus service rates per the approved rate schedule. 4.5.6 Abandoned Item Collection City crews will Collect items abandoned in the City and dispose of those items at City yard. Contractor will Collect such items from City yard and properly divert from landfilling or dispose of such items in accordance with Sections 4.1.16 and 4.1.17. 4.5.7 Large Venue Event Assistance, Event Recycling Contractor will assist planners of large venue events with reporting and planning needs as may be useful in meeting the requirements of AB 2176, and in lowering Disposal quantities generated at such events at no additional charge. Contractor shall take a proactive role in Solid Waste planning for large events. When informed by City as to an upcoming event, Contractor shall contact event planners to initiate Solid Waste Collection planning. Contractor shall provide Recycling services upon request to special event planners in accordance with Section 4.2.2. 4.5.8 Litter Boxes for Non-City-Sponsored Events Contractor must make cardboard litter boxes and liners available for purchase for all non-City-sponsored events in accordance with the approved rate schedule. 4.5.9 Code Enforcement Assistances City may request Contractor assistance with code enforcement, including reporting of container and enclosure issues and potential health and safety code violations. See Section 2.2 for code enforcement assistance regarding illegal hauling. 4.5.10 Capacity Guarantee [TO BE COMPLETED BASED UPON PROPOSAL] Draft, March 13, 2012 -50- City of Hermosa Beach 4.6 Operations 4.6.1 Schedules 4.6.1.1 Collection Days and Hours To preserve peace and quiet, Solid Waste shall only be Collected between 7:00 a.m. and 6:00 p.m. Residential collection is only permitted Monday through Friday; Commercial collection is permitted seven (7) days a week. Contractor may not make exceptions to these Collection days and times without advanced written approval from the City. If the regularly scheduled Collection day falls on New Year's Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving Day, or Christmas Day, Collection days for the remainder of that week shall all be postponed one Collection day, with the exception of service in the Downtown area. Contractor shall continue providing scheduled service in the Downtown area on holidays, and shall provide extra pickups as necessary, to prevent overflowing Containers on holiday weekends. See Section 4.1.13. 4.6.1.2 Review of Schedules and Routing Contractor shall review its operations plan outlining the Collection routes, intervals of Collection and Collection times for all materials Collected under this Agreement with City upon thirty (30) days written notice requesting said review. Contractor shall submit a copy of its Commercial and Residential Collection schedule and route map within seven (7) days if requested by City. If the plan is determined to be inadequate by City, Contractor shall revise it, incorporating any changes necessary to make it satisfactory to City within thirty (30) days. No change in schedules and routing shall be implemented for fifteen (15) days after Contractor receives approval from City and notifies Customers. No significant route changes may be made by Contractor without prior approval by City. 4.6.1.3 Missed Pickups If a missed pickup of Refuse, Recycling and/or Green Waste is reported to the Contractor by 3:00 p.m., the Contractor shall collect it on the same day. If a missed pickup is reported after 3:00 p.m., the Contractor shall make up the collection by noon of the next business day. Draft, March 13, 2012 -51- City of Hermosa Beach 4.6.2 Vehicles A. General. The Contractor shall provide Collection vehicles sufficient in number and capacity to efficiently perform the work required by this Agreement in strict accordance with its terms as described in this Agreement. Any additional vehicles/routes that may be required to meet the service standards during the term of this Agreement shall added at the Contractor's sole expense. The Contractor shall have available on Collection days sufficient back-up vehicles for each type of Collection vehicle used to respond to complaints and emergencies. B. Specifications. All route vehicles shall use compressed natural gas (“CNG”) or liquefied natural gas (“LNG”) within six months of the start of service under this Agreement. Contractor shall be in compliance with all rules and regulations currently in force or passed during the Agreement Term, including SCAQMD and the Air Resource Board’s regulations, in regards to all vehicles used in the City. No rate adjustments shall be made for such changes in law. All vehicles used by the Contractor in providing Solid Waste Collection services shall be registered with the California Department of Motor Vehicles. All such vehicles shall have watertight bodies designed to prevent leakage, spillage or overflow. Roll-off Box vehicles, Container delivery vehicles, scout vehicles, supervisor pickup trucks, and vehicles used for holiday tree Collection, special events and Bulky Item Collection are only required to use LNG or CNG fuel to the extent required by law, including SCAQMD and Air Resources Board regulations, with no rate adjustments granted for such changes in law. All route vehicles shall be no older than fifteen (15) years at any point during the Term of the Agreement. Contractor shall provide sufficient numbers of Collection vehicles no larger than ___________ to service narrow streets and alleys North of 27th Streets and other difficult areas where standard size Collection vehicles cannot easily and safely service Customers. [TO BE COMPLETED BASED ON PROPOSAL] C. Vehicle Identification. The Contractor's name, local telephone number, and a unique vehicle identification number designed by the Contractor for each vehicle shall be prominently displayed on all vehicles, in letters and numbers no less than three (3) inches high. The Contractor shall not place the City's name and/or any City logos on Draft, March 13, 2012 -52- City of Hermosa Beach the Contractor’s vehicles. Vehicles shall all be painted in a standard color scheme. City must approve truck labeling. D. Collection Vehicle Billboards. City reserves the right to request that Contractor install frames on its Collection vehicles for placement of City billboards. City would be responsible for the cost of developing the billboards and providing the billboards to Contractor for mounting. City has the exclusive right to promote City events and provide public information through the use of billboards on Collection vehicles. E. Cleaning and Maintenance 1) Contractor shall maintain all of its properties, vehicles, Facilities, and equipment used in providing service under this Agreement in a good, safe, neat, clean and operable condition at all times, and compliant with all federal, State and local laws. 2) Vehicles used in the Collection of Solid Waste shall be painted, thoroughly washed, and thoroughly steam-cleaned on a regular basis so as to present a clean appearance. The City may inspect vehicles at any commercially reasonable time to determine compliance with this Agreement. The Contractor shall also make vehicles available to the Los Angeles County Health Department for inspection, at any frequency it requests. The Contractor agrees to replace or repair to the City’s satisfaction, any vehicle that the City determines to be of unsightly appearance, leaking, or in unsatisfactory operating condition. 3) Contractor shall repaint all vehicles used in the Collection of Solid Waste within sixty (60) days' notice from the City, if the City determines that their appearance warrants painting. City shall not request that vehicles be painted more than once every three (3) years. 4) The Contractor shall inspect each vehicle daily to ensure that all equipment is operating properly. Vehicles that are not operating properly, or vehicles that are leaking or in such a condition as to be unsafe or excessively noisy, shall be removed from service until repaired and operating properly. The Contractor shall reasonably perform all scheduled maintenance functions in accordance with the manufacturer's specifications and schedule. The Contractor shall keep accurate records of all vehicle maintenance, recorded according to date and Draft, March 13, 2012 -53- City of Hermosa Beach mileage (or hours of operation) and shall make such records available to the City upon request. 5) Contactor 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. The Contractor shall maintain accurate records of repair, which shall include the date and mileage (or hours of operation), nature of repair and the verification by signature of a maintenance supervisor that the repair has been properly performed. 6) Upon request by the City, the Contractor shall furnish the City a written inventory of all equipment, including Collection vehicles, used in providing service, and shall update the inventory annually. The inventory shall list all equipment by manufacturer, ID number, date of acquisition, type, and capacity. F. Operation 1) Vehicles shall be operated in compliance with the California Vehicle Code, and all applicable safety and local ordinances. The Contractor shall not load vehicles in excess of the manufacturer's recommendations or limitations imposed by State or local weight restrictions on vehicles. 2) Equipment shall comply with US EPA noise emission regulations, currently codified at 40 CFR Part 205, and other applicable noise control regulations, and shall incorporate noise control features throughout the entire vehicle. In no event shall the noise level of equipment used for Collection exceed seventy-five (75) dB when measured at a distance of twenty-five (25) feet from the vehicle, five (5) feet from the ground. Contractor shall submit to the City, upon City’s request, a certificate of vehicle noise level testing of all vehicles by an independent testing entity. The Contractor shall store all equipment in safe and secure locations in accordance with the City's applicable zoning regulations. 3) Contractor shall be responsible for any damage resulting from or directly attributable to any of its operations, and which it causes to: the City's driving surfaces (excluding normal wear and tear), whether or not paved; associated curbs, gutters and traffic control devices; other public improvements; and private roads and alleys. Draft, March 13, 2012 -54- City of Hermosa Beach G. City Inspection Per Code. The City may cause any vehicle used in performance of this Agreement to be inspected and tested at any commercially reasonable time and in such manner as may be appropriate to determine that the vehicle is being maintained in compliance with the applicable provisions of the State Vehicle Code, including all Vehicle Code sections regarding smog equipment requirements. The City may direct the removal of any vehicle from service if that vehicle is found to be in nonconformance with applicable codes. No vehicle directed to be removed from service by the City shall be returned to service until it conforms with applicable codes, and its return to service has been approved by the City. H. Brake Inspections. The brake system of each vehicle used in performance of this Agreement shall be inspected and certified according to State law by the California Highway Patrol or by a brake inspection station licensed by the California Highway Patrol. Notice of certification shall be made available to the City within thirty (30) days of request. Failure to submit the required certification if requested shall be grounds for terminating this Agreement. I. Correction of Defects. Following any inspection, the City Manager shall have the right to cause the Contractor, at its sole cost and expense, to recondition or replace any vehicle or equipment found to be unsafe, unsanitary or unsightly. The City Manager’s determination may be appealed to the City Council, which decision shall be final. 4.6.3 Litter Abatement A. Minimization of Spills. Contractor shall use due care to prevent Solid Waste or fluids from leaking, being spilled and/or scattered during the Collection or transporta- tion process. If any Solid Waste or fluids leak or spill during Collection, Contractor shall promptly clean up all such materials. Each Collection vehicle shall carry a broom, shovel, absorbent, and containment materials at all times for this purpose. Contractor shall not transfer loads from one vehicle to another on any public street, unless it is necessary to do so because of mechanical failure, accidental damage to a vehicle, or a pre-approved method of Solid Waste transfer between vehicles, without prior written approval by City. Draft, March 13, 2012 -55- City of Hermosa Beach B. Clean Up. During the Collection or transportation process, Contractor shall clean up all litter spilled during Collection or otherwise caused by Contractor. Contractor shall leave a “red tag” notice for Customer if litter not caused by Contractor is found in Container enclosure or around Containers. For litter due to overflowing Bins, Contractor may address habitual offenders in accordance with Sections 4.1.3 and 4.1.7. In the event of a spill of materials (vehicle fluids, leachate, etc.), Contractor shall provide a cleanup of the spill to the satisfaction of City and other governing agencies. Cleanup methods may include pressure washing (Contractor must capture and reclaim water) or other similar clean-up methods. C. Covering of Loads. Contractor shall properly cover all open debris boxes during transport to the Disposal Site. 4.6.4 Personnel A. Qualified Drivers. Contractor shall furnish such qualified drivers, mechanical, supervisory, clerical, management and other personnel as may be necessary to provide the services required by this Agreement in a satisfactory, safe, economical and efficient manner. All drivers shall be trained and qualified in the operation of vehicles they operate and must possess a valid license, of the appropriate class, issued by the California Department of Motor Vehicles. B. Hazardous Waste Employee Training. Contractor shall establish and vigorously enforce an educational program which will train Contractor's employees in the identification of Hazardous Waste. Contractor's employees shall not knowingly place such Hazardous Waste in the Collection vehicles, nor knowingly dispose of such Hazardous Wastes at the processing Facility or Disposal Site. C. Customer Courtesy. Contractor shall train its employees in Customer courtesy, shall prohibit the use of loud or profane language, and shall instruct Collection crews to perform the work quietly. Contractor shall use its best efforts to assure that all employees present a neat appearance and conduct themselves in a courteous manner. If any employee is found to be discourteous or not to be performing services in the manner required by this Agreement, Contractor shall take all necessary corrective measures including, but not limited to, transfer, discipline or termination. If City has notified Contractor of a complaint related to discourteous or improper behavior, Draft, March 13, 2012 -56- City of Hermosa Beach Contractor will consider reassigning the employee to duties not entailing contact with the public while Contractor is pursuing its investigation and corrective action process. D. Compliance with Local Laws. Contractor and its employees shall comply with all local laws when conducting business in the City. No smoking is allowed within vehicles, and all smoking materials that are allowed shall be properly disposed of; no smoking materials or other trash shall be discarded in any location except approved trash or recycling containers. Employees and subcontractors shall comply with all other laws or regulations pertaining to franchisees or the public generally. E. Unauthorized Material Removal. Contractor shall dismiss or discipline employees who remove documents or any other material from Containers, other than specifically for the purposes of Disposal and Diversion as described in this Agreement. F. Training. Contractor shall provide suitable operations, health and safety training for all of its employees who use or operate equipment or who are otherwise directly involved in Collection or other related operations. G. Compliance with Immigration Laws. Contractor shall be knowledgeable of and comply with all local, state and federal laws which may apply to the performance of this Agreement. Contractor warrants and represents that all of its employees, including any and all prospective employees hired to perform services for the City under this Agreement and the employees of any subcontractor retained by the Contractor to perform a portion of the services under this Agreement, are and will be authorized to perform the services contemplated by this Agreement in full compliance with all applicable state and federal laws, rules and regulations. 4.6.5 Identification Required Contractor shall provide its employees, companies and subcontractors who may make personal contact with residents or businesses in City with identification. City may require Contractor to notify Customers yearly of the form of said identification. Contractor shall provide a list of current employees, companies, and subcontractors to City upon request. City reserves the right to perform a security and identification check through the City’s Police Department on the Contractor and all their present and future employees Draft, March 13, 2012 -57- City of Hermosa Beach employed by Contractor to work in the City, in accordance with accepted procedures established by City, or for probable cause. 4.6.6 Fees and Gratuities Contractor shall not, nor shall it permit any agent, employee, or subcontractors employed by it to request, solicit or demand, either directly or indirectly, any compensation or gratuity for services authorized to be performed under this Agreement except as described in this Agreement, in accordance with Exhibit 2 as updated and approved by City throughout the Term of the Agreement. 4.6.7 Non-Discrimination Contractor shall not discriminate in the provision of service or the employment of Persons engaged in performance of this Agreement on account of race, color, religion, sex, age, physical handicap or medical condition in violation of any applicable federal or Solid Waste law. 4.6.8 Routing and Coordination With Street Sweeping Services Contractor shall provide all routes and route schedules to the City and work with the City to resolve conflicts with street sweeping schedules. 4.6.9 Report of Accumulation of Solid Waste; Unauthorized Dumping Contractor shall direct its drivers to note (a) the addresses of any Premises at which they observe that Solid Waste is accumulating and is not being delivered for Collection; and (b) the address, or other location description, at which Solid Waste has been dumped in an apparently unauthorized manner. Contractor shall deliver the address or description to City within one (1) working day of such observation. 4.7 Transportation of Solid Waste Contractor shall transport all Solid Waste Collected to an approved Facility per Section 4.8 (e.g. Transfer Station, waste-to-energy Facility, Green Waste Processing Facility, MRF, Disposal Site). Draft, March 13, 2012 -58- City of Hermosa Beach Contractor shall maintain accurate records of the quantities of Solid Waste transported to all Facilities utilized and will cooperate with City in any audits or investigations of such quantities. Contractor shall cooperate with the operator of any Facility it uses with regard to operations therein, including, for example, complying with directions from the operator to unload Collection vehicles in designated areas, accommodating maintenance operations and construction of new facilities, cooperating with its Hazardous Waste exclusion program, and so forth. 4.8 Approved Facilities The Contractor shall dispose of Refuse Collected that is not required to be processed, or otherwise diverted, at the approved Disposal Site. Contractor must receive written advance approval from City to use each Transfer Station, Transformation Facility, processing Facility or other Facility used by Contractor in the fulfillment of this Agreement. Contractor is responsible for ensuring that each Facility it uses is properly permitted prior to requesting City approval to use such Facility. Unless and until the City instructs otherwise, the designated Disposal Site and other Facilities are: [TO BE COMPLETED BASED UPON PROPOSAL] 4.9 Status of Disposal Site Any Disposal Site utilized by Contractor shall be designed and constructed in accordance with 23 California Code of Regulations Section 2510 et seq. ("Subchapter 15"). Any such landfill has been issued all permits from federal, state, regional, county and City agencies necessary for it to operate as a Class III Sanitary Landfill and is in full regulatory compliance with all such permits. 4.10 Dedicated Routes Solid Waste Collected in the City may not be commingled in Collection vehicles with Solid Waste from other jurisdictions, unless the City approves in writing of the specific commingled routes and the tonnage allocation method to be used. Draft, March 13, 2012 -59- City of Hermosa Beach 4.11 Service Exceptions; Hazardous Waste Notifications A. Failure to Collect. When Solid Waste is not Collected from any Solid Waste service recipient, Contractor shall notify the service recipient in writing, at the time Collection is not made, through the use of a “red tag” or otherwise, of the reasons why the Collection was not made. B. Hazardous Waste Inspection and Reporting. Contractor reserves the right to inspect Solid Waste put out for Collection and to reject Solid Waste observed to be contaminated with Hazardous Waste, and the right not to Collect Hazardous Waste put out with Solid Waste. Contractor shall notify all agencies with jurisdiction, if appropriate, including the California Department of Toxic Substances Control and Local Emergency Response Providers and the National Response Center of reportable quantities of Hazardous Waste, found or observed in Solid Waste anywhere within City. In addition to other required notifications, if Contractor observes any substances which it or its employees reasonably believe or suspect to contain Hazardous Wastes unlawfully disposed of or released on any City property, including storm drains, streets or other public rights of way, Contractor will immediately notify City Manager. Contractor shall implement and maintain a training program that will assist its employees in identifying and properly disposing of any Hazardous Waste that may come into their possession. C. Hazardous Waste Diversion Records. Contractor shall maintain records showing the types and quantities, if any, of Hazardous Waste found in Solid Waste and which was inadvertently Collected from service recipients within City, but diverted from landfilling. Draft, March 13, 2012 -60- City of Hermosa Beach ARTICLE 5 OTHER SERVICES 5.1 Customer Service 5.1.1 Local Office Contractor shall maintain a local office within reasonable proximity to the City, staffed and open for Customers, at a minimum, from 8:00 a.m. to 5:00 p.m., Monday through Friday, excluding holidays. Contractor shall staff a toll-free telephone line to assist Customers from 7:00 a.m. to 6:00 p.m. Monday through Friday; a representative or an answering service shall be available from 8:00 a.m. to 5:00 p.m. on Saturday; a representative, an answering service or answering machine shall be available during all other hours. Calls received by answering service or machine shall be responded to on the next business day. Contractor shall provide City with a twenty-four (24) hour emergency number to a live person, not voice-mail. Contractor's telephone system shall be adequate to handle the volume of calls typically experienced on the busiest days and Customers must be reasonably able to reach Contractor by telephone during these hours. Contractor shall record Customer complaints regarding Customer service personnel in accordance with Section 5.1.2. Customer service representatives receiving multiple complaints are to be transferred from Customer service duties or, with City approval, disciplined and appropriately trained. 5.1.2 Complaint Documentation Service complaints received by City shall be directed to Contractor. Contractor shall keep daily logs of complaints forwarded to it for a minimum of three (3) years. 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 caller/complainant, 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. Log shall also include each instance that Solid Waste and/or Recyclables are Draft, March 13, 2012 -61- City of Hermosa Beach not Collected, the form of notification used to inform the participants of the reasons for non-Collection, and the end result or means of resolution of the incident. All written Customer complaints and inquiries shall be date-stamped when received. All complaints shall be initially responded to within one (1) business day of receipt, except missed pickups, which shall be addressed within the time frame described in 4.6.1.3. Contractor shall use best efforts to resolve complaints within two (2) business days. Contractor shall log action taken by Contractor to respond to and remedy the complaint. 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. 5.1.3 Resolution of Customer Complaints Disputes between Contractor and Customers regarding the services provided in accordance with this Agreement may be resolved by City Manager. City Manager’s decision shall be final and binding. Intervention by 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. 5.1.4 Service Liaison/Route Supervisor Contractor shall designate in writing a field supervisor as “Service Liaison” who shall be responsible for working with City and/or City's designated representative(s) to resolve Customer service related complaints. City shall have the right to approve the Contractor’s choice for a liaison. City shall be notified in advance of any change in Service Liaison. Service Liaison shall devote a minimum of ___% of his/her time to working with the City of Hermosa Beach. Draft, March 13, 2012 -62- City of Hermosa Beach 5.2 Education and Public Awareness 5.2.1 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. Accordingly, Contractor agrees to take direction from City 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. Contractor shall maintain its own program of providing information relevant to needs and methods to reduce, reuse and Recycle Solid Waste with its Bills. All public education materials shall be approved in advance by City and shall be printed in English and Spanish. 5.2.2 Implementation and On-going Education Requirements In order to promote public education, in addition to any other materials it develops, Contractor shall create the following public education materials and programs at Contractor expense, subject to City approval and input, which will be distributed as indicated below. All of these materials and programs shall be produced and/or available in English and Spanish languages, including pictures wherever applicable. All brochures, mailings, instructional “how-to” packets, and other educational materials are to be approved by City in advance of distribution. A public education plan shall be submitted to City for review within sixty (60) days of the execution of this Agreement. This plan shall address the items described in this section. • Initial Mailing – At least forty-five (45) days prior to the start of Collection service under this Agreement, Contractor will prepare and mail an initial mailing to all Customers explaining the transition from the existing Solid Waste Handling Service program to the new program as defined by this Agreement. The mailing will describe program changes, route changes if any, dates of program implementation, Recycling and Diversion programs available, and other pertinent information. • Instructional “How-to” Packets – An information packet shall be provided to each Customer at the start of service under this Agreement and to each new Customer throughout the Agreement term. This packet shall: describe available services, including available Recycling and Diversion programs and their benefits; provide Draft, March 13, 2012 -63- City of Hermosa Beach instructions for proper use of the Carts and Bins provided (such as how to place Carts or other permitted items for Collection, the types of materials to be placed in each Cart); detail holiday Collection schedules; and provide Billing and Customer service telephone numbers. This packet will contain updated information on how to use Containers, when, where and how to place Solid Waste for Collection, and who to contact with service or Billing questions, and for Bulky Item pickups. The packet should also clearly indicate what materials, such as syringes and other HHW, should not be disposed of in these Containers. This brochure shall include instructions on how Customers should dispose of HHW and Sharps, such as information on the HHW drop-off facilities, Sharps program, and other available programs. • Public Outreach Pieces – Not less than twice per year during each Rate Year at Contractor’s cost, Contractor shall prepare and distribute to each Customer, either by mailing or as otherwise dictated by City a public education piece to update Customers regarding program basics, program changes, holiday schedules and other service related information. Mailings may promote and explain: all Solid Waste programs offered by City and Contractor (such as Recycling, Green Waste, holiday tree, Bulky Item Collections, annual HHW round-up) described in detail; the environmental, regulatory, and other benefits of participating in Recycling and waste minimization and reuse in general; how to properly dispose of Household Hazardous Waste such as syringes, paint, etc.; Collection schedules, including holiday schedules; Customers service numbers; or other information requested by City. City shall determine the messages to be included in each piece and the format (brochure, door hanger, other), and shall have final approval over the pieces. • Article and Press Release Assistance – Contractor shall assist the City in preparing articles and press releases related to Solid Waste services and environmental issues upon City request. • Corrective Action “Red-Tag” Notice – Contractor shall develop a corrective action notification form, or “Red-Tag” notice, for use in instances where a Customer sets out inappropriate materials for Collection, that explains the appropriate manner for Disposal of such items. Draft, March 13, 2012 -64- City of Hermosa Beach • Website – Contractor shall develop and maintain a website to enable Customers to contact Contractor, and to display holiday schedules, Sharps program information, proper HHW disposal procedures, which materials are to be placed in Recycling Containers, and other useful information. 5.2.3 Contractor Representative Contractor shall retain on its staff an individual who shall, as part of his or her job function, routinely visit civic groups, school assemblies, homeowners’ associations, Multi-Family complexes and businesses, to promote and explain the Recycling programs Contractor offers, and participate in demonstrations and civic events. 5.2.4 Community Events At the direction of City, Contractor shall participate in and promote Recycling and other Diversion techniques at community events including Earth Day, and other local activities. Such participation would normally include providing, without cost, Collection and educational and publicity information promoting the goals of City's Integrated Solid Waste Management program and give-a-ways promoting waste reduction and reuse, such as reusable bags. 5.2.5 School Outreach At no additional cost, Contractor shall contact all K-12 public schools in the City of Hermosa Beach at least once per school year to offer to conduct assemblies, and to prepare and provide classroom materials (not curriculum), to educate students regarding Recycling and other Solid Waste-related topics. Materials provided shall be in sufficient quantities to service all classrooms and students for which materials are requested, and shall be subject to City approval. Contactor shall provide in-classroom and on-campus Recycling Containers at no cost to schools or City. 5.2.6 Business Outreach Contractor shall conduct a program to recognize businesses making positive environmental efforts and participating in Recycling programs. Awards will be presented annually at an annual event, Council meeting or award ceremony to be mutually agreed upon by City and Contactor, Contractor shall provide selected companies with an award to be mutually agreed upon by City and Contractor. Draft, March 13, 2012 -65- City of Hermosa Beach Company will provide business managers with promotional information, flyers and instructional posters made from recycled paper and labeled “Made from Recycled Paper” to implement a comprehensive waste reduction and recycling program, including information on what cannot be placed in the recycling container (i.e.: HHW).Contractor shall develop a comprehensive program to promote the following: • Reduce solid waste disposal and promote recycling; • Become energy and water efficient; • Purchase products that are less harmful to human health and the environment; • Minimize pollution contributions; • Help improve indoor air quality and reduce smog formation; and, • Educate businesses and their customers and employees about green business practices. Contractor shall provide initial and on-going consultation and support to businesses who request it to assist in the development and continuation of their business’ waste reduction and recycling programs. 5.2.7 Multi-Family Outreach Contractor will provide all property managers and Residents with Bin service with Recycling program guidelines, posters to be placed in laundry rooms, Refuse/Recyclable Container enclosures and other community areas at each building, and other outreach materials tailored to Multi-Family Bin Customer service. When contacting Multi-Family Customer building owner or property manager in accordance with Section 4.2.2, Contractor shall provide educational materials, and offer training to owner/manager in how to work with tenants to Recycle. Contractor shall provide each building owner and property manager with welcome packets for owner/manager to provide to each new resident upon move-in; packets will include information on what should be placed in the recyclables containers. Draft, March 13, 2012 -66- City of Hermosa Beach 5.2.8 Facility Tours Upon thirty (30) days’ notice, Contractor shall provide City Customers and organizations tours of its Recycling and other Solid Waste facilities at no cost to City, Customers or organizations. Such tours shall not unreasonably disrupt facility operation. City shall not be charged for labor, overhead, overtime, or any other costs associated with such tours. As part of such tours, Contractor shall distribute an educational brochure, printed on recycled paper, on conservation, Recycling, and general Solid Waste management programs. 5.3 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, by Customer type (Single Family, Multi-Family, Commercial), to satisfy the requirements of AB 939 and the City’s sustainability and environmental objectives. Contractor will at its sole expense conduct such a waste generation and characterization study upon request of City, but not more than once every two (2) years. Draft, March 13, 2012 -67- City of Hermosa Beach ARTICLE 6 CONTRACTOR COMPENSATION AND RATES 6.1 General The maximum rates set forth in Exhibit 2, and as more fully defined as Contractor Compensation in this Article, shall be the maximum amount that Contractor may charge Customers, as full, entire and complete compensation due pursuant to this Agreement for all labor, equipment, materials and supplies, City fees, taxes, insurance, bonds, letters of credit, overhead, Disposal, transfer, profit and all other things necessary to perform all the services required by this Agreement in the manner and at the times prescribed. Contractor shall impose no other charges for services provided to Customers unless approved by the City Manager. 6.2 Initial Rates The maximum rates that Contractor may charge Customers through December 31, 2013, shall not exceed the maximum rates set forth in Exhibit 2. 6.3 Schedule of Future Adjustments 6.3.1 Request Submittal Beginning with the Rate Year starting January 1, 2014 and ending on December 31, 2014, and for all subsequent Rate Years, Contractor may request an annual adjustment to the maximum rates shown in Exhibit 2. The Contractor shall submit its request in writing, to be received by City in person or via certified mail, by the preceding August 1, and shall be based on the method of adjustment described in Section 6.4. Failure to submit a written request by August 1 shall result in Contractor waiving the right to request such an increase for the subsequent Rate Year. Adjustment to the maximum rates is subject to the approval of the City Manager. 6.3.2 Approval Process Adjustment to the maximum rates is subject to the approval of the City Council. If a rate adjustment requested per this Section 6.3 is determined by the City to be accurately calculated in accordance with Agreement procedures, and would otherwise have been Draft, March 13, 2012 -68- City of Hermosa Beach approved by the City Council, but is prevented from implementation due to a protest under Proposition 218, then Contractor is permitted to terminate this Agreement upon 24-month written notice to City, but shall not be entitled to compensation from City or Customers for lost revenue due to the Proposition 218 protest. 6.4 Method of Adjustments 6.4.1 General Pursuant to Section 6.3, Contractor may request an adjustment to the maximum rates according to the method described below, subject to review and approval of City. All future adjustments approved under Sections 6.3 and 6.4 are to be effective January 1. 6.4.2 Cost Components for Rate Adjustment Indices The approved Company Compensation consists of the following cost component categories. Each cost component may be adjusted by the change in the corresponding index below. See Section 6.4.3 for detailed Company Compensation adjustment procedures. (1) If an index is discontinued, an alternative index must be approved by the City Manager. Bin/Cart/ Can/COD Roll-Off Box Pull Labor Employment Cost Index CIU20100005200000I, Total compensation, Private industry, Index number, Transportation and material moving Fuel Producer Price Index WPU 0531, Not seasonally adjusted, Fuels and related products and power, natural gas Equipment Producer Price Index, PCU336120336120, Heavy duty truck manufacturing Disposal Consumer Price Index for All Urban Consumers (CUUR0000SA0L1E), all items less food and energy index – U.S. city average [OR AS PROPOSED] All Other Consumer Price Index for All Urban Consumers (CUUR0000SA0L1E), all items less food and energy index – U.S. city average Total 100% 100% Rate Adjustment Factor (1)Cost Category Initial Weightings Draft, March 13, 2012 -69- City of Hermosa Beach 6.4.3 Rate Adjustment Steps Cart, Can, Bin and COD Roll-Off Box Rates Bin, Can, Cart and disposal-inclusive (COD) Roll-Off Box rates will be adjusted using the cost component weightings identified above for Bin, Can, Cart and COD Roll-Off Box rates as described below. See Exhibit 3A. Step One – Calculate the percentage increase or decrease in each index listed in Section 6.4.2. The increase or decrease in the transformation component is based on the transformation tipping fee at the transformation facility. The increase or decrease in the published indices for labor, fuel, equipment, disposal and all other (CPI) will be the change in the average annual published index between the 12-months ended the March prior to the Rate Year anniversary date and prior 12-month average (See Exhibit 3C). Step Two – The first rate adjustment cost components as a percentage of total costs are provided in Section 6.4.2 above, with subsequent components calculated in Step Four of the rate adjustment. For Step Two of each subsequent rate adjustment, use the cost components recalculated in Step Four during the previous rate adjustment. Multiply the percentage changes for each rate adjustment component by that component’s weighting and add these resulting percentages together to get the total weighted change to the rates. Step Three – Multiply the total weighted percent change from Step Two by the existing Customer rates to calculate the increase or decrease to the maximum rates. Add the rate increase or decrease to the existing rates to derive the newly adjusted rates. Step Four – Recalculate weightings for the following year based upon these changes. “Pull Plus Dump” Roll-Off Box Rates Roll-Off Box pull rates (excluding disposal-inclusive COD rates) will be adjusted using the same methodology above, with the weightings identified above for Roll-Off Pulls. The per ton Roll-Off Box Refuse Disposal rate shall adjust based upon the change in the disposal component of the rates (per the rate adjustment factor in Section 6.4.2). See Exhibit 3B. Draft, March 13, 2012 -70- City of Hermosa Beach 6.5 Extraordinary Adjustments Contractor may request an adjustment to maximum rates in the event of extraordinary changes in the cost of providing service under this Agreement. Extraordinary rate adjustments may be requested no more than once per year. Reasons for such extraordinary rate adjustment requests shall not include changes in Recyclable Material or Green Waste tipping fees or processing costs, changes in the market value of Recyclables from the values assumed in Contractor's Proposal, inaccurate estimates by the Contractor of its proposed cost of operations, unionization of Contractor’s work force, or change in wage rates or employee benefits. Contractor may request an extraordinary adjustment based upon changes in a direct per ton fee assessed at the Disposal Site by federal, state or local regulatory agencies after the Effective Date. Extraordinary rate adjustments shall only be effective after approval by City Council and may not be applied retroactively. For each request for an adjustment to the maximum rates that Contractor may charge Customers 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. Contractor shall also submit a schedule showing how its total costs and total revenues have changed over the past three (3) years for the services provided under this Agreement. City may request a copy of the Contractor’s annual financial statements in connection with the City’s review of Contractor’s rate adjustment request. City shall review the Contractor’s request and, in City’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. City may consider increases or decreases in the Contractor’s total revenues and total cost of services when reviewing an extraordinary rate adjustment request. 6.6 Redelivery/Return Trip Fee Contractor may charge a fee, per the approved rate schedule, in the event that Contractor arrives on time for a scheduled Collection of Bins or Roll-off Boxes, is impeded from Collection due to Container being blocked or otherwise unable to be Collected due to issues within the Customer’s control, and Contractor must return a Draft, March 13, 2012 -71- City of Hermosa Beach second time for Collection. Charge may be assessed for the trip, not per Bin or Roll-off Box, in the event of a Customer with multiple Bins or Roll-off Boxes. In event of dispute between Contractor and Customer over application of this fee, City Manager shall resolve the dispute. 6.7 Customer Billing and Contractor Compensation 6.7.1 Residential Customers Receiving Individual-Unit Service Contractor shall Bill individually-serviced Residential Customers quarterly, no sooner than the first day of the quarter for which services are being Billed. Contractor assumes the risk of non-payment. 6.7.2 Permanent Bin and Roll-Off Box Customers Contactor shall Bill permanent Bin and Roll-Off Box Customers monthly, no sooner than the first day of the month for which service is being Billed, with payment due no sooner than thirty (30) days after the invoice date. Contractor assumes the risk of non- payment by Bin Customers. 6.7.3 Temporary Services Billing Contractor shall Bill for temporary Roll-off Box and Bin services, and other special charges, as permitted in Exhibit 2. For established Commercial accounts, Contractor shall Bill monthly, no sooner than the first day of service, and require payment no sooner than thirty (30) days from the start of the service period Billed for. For Customers without an established, on-going service accounts, Contractor will accept major credit cards for payment. Such Customers who do not use credit cards may be required by the Contractor to post a security deposit or to pay on a “Cash on Delivery” (C.O.D.) basis. Any unused portion of a security deposit will be refunded to the Customer within five (5) business days of the termination of service. 6.7.4 Contractor’s Invoices All Bills must include service description, including Container size, frequency of service, any special services (such as scout or push-out service), and period billed for. City must approve Contractor Billings as to content and format of invoice. All Bills must carry a due date, not “due upon receipt.” Bills will not separately itemize City fees, Draft, March 13, 2012 -72- City of Hermosa Beach surcharges, disposal components or other breakdown of rates without advance written approval from City. Bills shall include Contractor’s telephone number for Billing and service inquiries. 6.7.5 Billing Disputes If any Customer disputes a Billing statement provided by Contractor, Contractor shall provide notice thereof to the City Manager, with a copy of the Billing invoice and the nature of the dispute (including copies of any correspondence from the Customer). Contractor shall use its best efforts to resolve such disputes within seven (7) days of receipt of notice from the Customer of such dispute. If such dispute cannot be mutually resolved by the Contractor and the Customer within such seven (7) day period, the dispute will be submitted to the City Manager for binding dispute resolution. Contractor acknowledges that the determination of the City Manager relating to such dispute shall be final and un-appealable. 6.7.6 Delinquent Accounts Contractor shall be responsible for collecting unpaid Customer Billings, subject to limitations under this section. City will assist the Contractor with collections by putting delinquencies on the County property tax roll after the delinquency notes have been delivered, but is not liable for any bad debt. Residential Cart/Can Service For late payments, Contractor shall follow procedures below: 1. The first delinquency notice may be sent with the subsequent quarterly Billing, with a copy sent to the City Manager. A 10% late payment fee may be added to the outstanding, late balance. 2. The second delinquency notice may be sent no sooner than thirty (30) days following the first notice, with a copy sent to the City Manager. A second 10% late payment fee may be added to the outstanding, late balance. Draft, March 13, 2012 -73- City of Hermosa Beach Bin, Commercial Cart/Can and Roll-Off Box Service 1. The first delinquency notice may be sent with the subsequent monthly Billing, with a copy to the City Manager. A 10% late payment fee may be added to the outstanding, late balance. 2. The second delinquency notice may be sent thirty (30) days after the first, warning that service may be suspended, with a copy to the City Manager. A second 10% late payment fee may be added to the outstanding, late balance. 3. Anytime following the second delinquency notice, Contractor shall send a notice warning that service will be suspended within seven (7) days, with copy to City Manager. Contractor may suspend service after seven (7) days with written City approval. City may prohibit suspension of service to Residential Cart/Can Customers, and may request that service be continued or resumed for delinquent Residential Bin Customers on a case-by-case basis due to code enforcement issues; in such cases, City shall not be liable to Contractor for service costs not recovered by Contractor. 6.7.7 Customer Billing Adjustments Should Contractor determine that Contractor has under-billed a Customer, or Customers, Contractor may back-Bill for no more than six (6) months. If it is determined by the City Manager that the under-billing was entirely due to an error or omission on the part of the impacted Customer, Contractor may request authority from the City Manager to back-bill longer than six months. Reimbursements to Customers for overbilling are not limited. If Contractor Bills Customers for any service charges not on the City-approved rate schedule, or not otherwise approved in writing by the City, such charges shall be refunded to Customers at City request. 6.7.8 Exemption from Service Residents may request a temporary exemption from service due to non-occupancy, construction, documentation of self-hauled Disposal, or other reasons. Contractor shall be responsible for administering exemption procedures. City may provide or revise Draft, March 13, 2012 -74- City of Hermosa Beach Contractor guidelines to exempt properties from receiving, and paying Contractor for, Solid Waste Collection service. Exempt properties may include vacant or unoccupied properties, or properties in which owners can document alternative means of self-haul Disposal. Draft, March 13, 2012 -75- City of Hermosa Beach ARTICLE 7 REVIEW OF SERVICES AND PERFORMANCE 7.1 Performance Review Meeting City may hold a meeting or a public hearing annually 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 Meeting”). The purpose of the Solid Waste Services and Performance Review Meeting 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 Meeting 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, regulatory constraints, results of route audits, and Contractor performance. City and Contractor may each select additional topics for discussion at any Solid Waste Services and Performance Review Meeting. City shall notify Contractor of its intent to hold a Solid Waste Services and Performance Review Meeting at least sixty (60) days in advance thereof. Thirty (30) days after receiving notice from City of a Solid Waste Services and Performance Review Meeting, Contractor shall submit a report to City which may contain such information as it wished to have considered, and shall contain the following: a) Current Diversion rates and a report on Contractor’s outreach activities for the past year. b) Recommended changes and/or new services to improve City's ability to meet waste diversion goals and to contain costs and minimize impacts on rates. A specific plan for compliance with State diversion goals shall be included. c) Any specific plans for provision of new or changed services by Contractor. Draft, March 13, 2012 -76- City of Hermosa Beach 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 Meeting. 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 Meeting, and any Customer may submit comments or complaints during or before the Meeting, either orally or in writing. Contractor shall be present at and participate in the Solid Waste Services and Performance Review Meeting. As a result of its findings following any Solid Waste Services and Performance Review Meeting, City may require Contractor to provide expanded or new services within a reasonable time and City may direct or take corrective actions for any performance inadequacies (although nothing contained in this provision should be construed as requiring City to hold a Solid Waste Services and Performance Review Meeting in order to enforce any rights or remedies it has pursuant to the terms hereof.) Should City require expanded or new services as a remedy for Contractor’s failure to perform its obligations hereunder, no additional compensation shall be due for such services. Otherwise, any new or expanded services required of Contractor shall be subject to the provisions of Section 2.10. 7.2 Performance Satisfaction Survey If requested by the City, Contractor will create and conduct a survey at Contractor’s expense in preparation for any Solid Waste Services and Performance Review Meeting held pursuant to Section 7.1. City shall notify Contractor of its desire for such a survey at least ninety (90) days in advance of the Solid Waste Services and Performance Review Meeting. The purpose of the survey is to determine Customer satisfaction with current Collection services and Customer service provided by Contractor. The Survey will be distributed to a minimum of five percent (5%) of the Residential Customers and ten percent (10%) of the Commercial Customers, selected at random. City may instruct Contractor to send out separate Single Family and Multi-Family/Commercial surveys. Contractor shall obtain City’s approval of each survey’s content, format, and mailing list prior to its distribution. City may require that Contractor have Customer responses to the survey returned directly to City. The survey results shall be made available to the City thirty (30) days prior to the Solid Waste Services and Performance Review Meeting. Draft, March 13, 2012 -77- City of Hermosa Beach 7.3 Route Audit Once during the first year, and thereafter at City request (but not more frequently than once per year), Contractor shall conduct an audit of its Residential and/or Commercial Collection routes in the City. City may use information from the audit to develop a request for proposals for a new service provider. City may instruct Contractor when to conduct the audit in order for the results to be available for use in preparation of a request for proposals or for other City uses. City may also instruct Contractor to conduct an audit at a time that would produce the most accurate Customer service information for a new service provider to use in establishing service with Customers. In setting these audit dates, City will establish due dates for Contractor providing routing and account information, and later, the report, to City. The route audit, at minimum, shall consist of an independent physical observation by person(s) other than the route driver of each Customer in City. This person(s) is to be approved in advance by City. The route audit information shall include, as a minimum, the following information for each account: For Residential Cart Customers (Residential Route Audit):  Route number;  Truck number;  Number and size of Carts by waste stream (Refuse, Recycling, Green Waste);  Service address; and,  Cart condition. For Residential Bin, Commercial Bin and Cart, and permanent Roll-off Customers (Commercial Route Audit):  Route number;  Truck number;  Account name;  Account number;  Account service address;  Account type (Residential, Commercial, Roll-off); Draft, March 13, 2012 -78- City of Hermosa Beach  Service level per Contractor Billing system (quantity, size, frequency);  Observed Containers (quantity and size).  Container 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 of the audit. This summary shall include:  Identification of the routes;  Route map;  Truck numbers;  Number of accounts, by route and in total (Residential, Commercial and Roll-off Box);  Confirmation that all routes are dedicated exclusively to City Customers, or that the tonnage allocation methodology has been approved by the City;  Number and type of exceptions observed;  Total monthly service charge (Residential, Commercial and Roll-off Box), pre-audit; and,  Total monthly service charge (Residential, Commercial and Roll-off Box), post-audit (subsequent to corrections of identified exceptions). The report shall include a description of the procedures followed to complete the route audit. This description shall include the names and titles of those supervising the route audits and the names and titles of those performing the observations. The report shall also include a description of the changes and Contractor’s plans to resolve the exceptions. The results of the audit, and supporting back-up data, shall be available for review by City or its representative and shall be made available in an electronic or printed format. Draft, March 13, 2012 -79- City of Hermosa Beach ARTICLE 8 RECORDS, REPORTS AND INFORMATION REQUIREMENTS 8.1 General Contractor shall maintain such accounting, statistical and other records related to its performance under this Agreement as shall be necessary to develop the financial statements and other reports required by this Agreement. Also, Contractor agrees to conduct data collection, information and record keeping, and reporting activities needed to comply with applicable laws and regulations, to meet the reporting and Solid Waste program management needs of City, and to evaluate progress on meeting the City’s sustainability and environmental objectives. To this extent, such requirements set out in this and other articles of this Agreement shall not be considered limiting or necessarily complete. In particular, this article is intended to only highlight the general nature of records and reports and is not meant to define exactly what the records and reports are to be and their content. Further, with the written direction or approval of City, the records and reports to be maintained and provided by Contractor in accordance with this and other Articles of the Agreement shall be adjusted in number, format, or frequency. 8.2 Records 8.2.1 General Contractor shall maintain records required to conduct its operations, to support requests it may make to City, and to respond to requests from City in the conduct of City business. Adequate record security shall be maintained to preserve records from events that can be reasonably anticipated such as a fire, theft and earthquake. Electronically maintained data/records shall be protected and backed up to the satisfaction of the City. All records shall be maintained for five (5) years, and shall continue to be available for five (5) years after the expiration of this Agreement, except as otherwise provided in this Agreement. After minimum holding periods are met, Contractor will notify City ninety (90) days before destroying records. Contractor agrees that the records of any and all companies conducting operations addressed in the Agreement shall be provided or made available to City and its official Draft, March 13, 2012 -80- City of Hermosa Beach representatives during normal business hours. Account histories shall be accessible to the City by computer for a minimum of five (5) years. City may review or utilize any of the records described in this section. Such records include, but are not limited to, financial, Solid Waste, CERCLA and Disposal records. 8.2.2 Financial Records Contractor shall maintain financial records relating to its operations pursuant to this Agreement separate and segregated from such records relating to its other operations. Contractor shall maintain at least the following records: • Audited financial statements for Contractor or, if a guarantee was provided, for the parent company guarantor as a whole; • Financial statements (compiled, reviewed or audited) of revenue and expense for this Agreement segregated from the other operations of Contractor (including without limitation those operations of Contractor in City and surrounding jurisdictions which are not covered by this Agreement), including a description of segregation methodology; and, • Complete descriptions of related party transactions (corporate and/or regional management fees, intercompany profits from transfer, processing or Disposal operations). 8.2.3 Solid Waste Records Contractor shall maintain and make available to the City upon request the following records relating to its operations pursuant to this Agreement: a) Customer services and Billing/City payment records; b) Records of tons Collected, processed, diverted and Disposed by waste stream (Refuse, Recycling and Green Waste), by Customer type (Cart/Can, Residential Bin, Commercial and Roll-off Box), and the Facilities (Transfer Station, MRF, or landfill) where such material was taken (Residential Bin versus Commercial Bin tonnage may be estimated based upon Container distribution or other method approved by City); Draft, March 13, 2012 -81- City of Hermosa Beach c) Quantity of Recyclable Materials recovered by material type, as well as quantity of material diverted from landfills in compliance with AB 939; d) Bulky Item and special event tonnages, including tons disposed and diverted; e) Routes; f) Facilities, equipment and personnel used; g) Facilities and equipment operations, maintenance and repair; h) Number and type of Refuse, Recycling and Green Waste Containers in service by container type (Cart, Can, Bin, Roll-Off Box) and size; i) Complaints; and, j) Missed pickups. 8.2.4 CERCLA Defense and Disposal Records The City views the ability to defend against CERCLA, State Hazardous Substance Law, 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. The Contractor shall maintain data retention and preservation systems that can establish where Solid Waste Collected in the City was landfilled (and therefore establish where it was not landfilled) and provide a copy of disposal reports for twenty-five (25) years and the other reports required in Section 8.2.3 for five (5) years after the term during which Collection services are to be provided pursuant to this Agreement, or to provide copies of such records to the City. Contractor shall continue to retain records in accordance with Section 8.2.3 for five (5) years, and disposal records for twenty-five (25) years, after the term during which Collection services are to be provided pursuant to this Agreement. Contractor agrees to notify the City’s Risk Manager and the City Attorney at least ninety (90) days before destroying such records. This provision shall survive the expiration of the period during which Collection services are to be provided under this Agreement. Draft, March 13, 2012 -82- City of Hermosa Beach 8.2.5 Other Programs' Records Records for other programs shall be tailored to specific needs. In general, they shall include: a) Plans, tasks, and milestones; and, b) Accomplishments in terms such as dates, activities conducted and numbers of participants and responses; and, c) Records relating to programs or other activities undertaken by Contractor pursuant to the Agreement that may help City to complete reporting related to the City’s sustainability and environmental objectives. 8.2.6 Audit City may conduct an audit of Contractor at any time. The scope of the audit and auditing party 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 rate. Contractor will fund biennial audits. The first hauler-funded audit, to be performed during 2014, will be based on the Contractor’s reports and records for calendar year 2013. Contractor-funded audits will be performed every other year thereafter. Contractor will reimburse to the City the cost of such audits up to $80,000 for the first audit, and $50,000 for each subsequent biennial audit in 2014 dollars. The $50,000 amount in subsequent years shall be increased annually by the change in CPI identified in Section 6.4 as the change to the “all other” component. Should an audit conducted or authorized by the City disclose that fees payable by Contractor were underpaid by three percent (3%) or more, that tonnage was misreported by three percent (3%) or more, or that more than three percent (3%) of the Customers were inaccurately Billed based on the auditor’s sampling for the period under review, City may expand the scope of the audit and recover additional audit costs from the Contractor. Draft, March 13, 2012 -83- City of Hermosa Beach 8.2.7 Payments and Refunds Should an audit disclose that fees payable by the Contractor were underpaid or that Customers were overcharged for the period under review, Contractor shall pay to City any underpayment of fees and/or refund to Contractor's Customers or to City, as directed by City, any overcharges within thirty (30) days following the date of the audit; reimbursement to City or Customers for underpayments and overcharges may be limited to three (3) years. Contractor credit for overpayment of City fees shall be limited to three (3) years. Contractor shall pay interest to the City for any underpayment or overcharges at an annual rate of twelve percent (12%). Undercharges shall not be billed in arrears for more than ninety (90) days of service, with any remaining undercharges absorbed by Contractor. Should an audit disclose that fees were overpaid, City may credit such amounts against future fees payable by Contractor or may select another method of reimbursement. 8.3 Reports 8.3.1 Report Formats and Schedule Records shall be maintained in forms and by methods that facilitate flexible use of data contained in them to structure reports, as needed. Contractor may propose report formats that are responsive to the objectives and audiences for each report. The format of each report shall be approved by City. In addition to submitting all reports on paper, Contractor agrees to submit all reports in an electronic format approved by City, compatible with City’s software/computers at no additional charge. Reports shall be submitted within thirty (30) calendar days after the end of the reporting period. Annual reports for which a date is not otherwise specified in this Agreement shall be submitted within thirty (30) calendar days after the end of the calendar year. If requested, Contractor’s complaint summary, described in Section 5.1.2, shall be sent to the City Manager within five (5) business days of request. All reports shall be submitted to: City Manager City of Hermosa Beach 1315 Valley Drive Hermosa Beach, California 90254 Draft, March 13, 2012 -84- City of Hermosa Beach 8.3.2 Monthly Reports The information listed below shall be the minimum reported: a) Solid Waste Collected by Contractor, sorted by type of Solid Waste Collected and diverted (Refuse, Recycling and Green Waste) in tons (including contamination and Diversion rates for each waste stream and Customer type), Customer type (Cart/Can, Bin and Roll-off Box) and the Facilities where the tons were processed or Disposed. b) Warning notices issued for contaminated Refuse, Recyclable Materials and Green Waste Containers. c) Narrative summary of problems encountered and actions taken with recommendations for City, as appropriate. d) Description of Contractor outreach activities and copies of promotional and public education materials sent during the month. e) Other information or reports that City may reasonably request or require. Note: Monthly fee payment statement supporting calculation of monthly fees due per Article 3 shall be submitted separately, accompanying the fee payment. 8.3.3 Annual Report The annual report shall include: a) A summary of the number of Containers in service as of December 31 by size (number of gallons, number of yards), sector (Residential Cart, Residential Can, Commercial Cart, Commercial Can, Residential Bin, Commercial Bin and Roll-off Box), service frequency, and type of service (Refuse, Recycling and Green Waste). Identify which Containers represent free City services. b) Records of tons Collected, processed, diverted and disposed by waste stream (Refuse, Recycling and Green Waste), by Customer type (Cart/Can, Bin and Roll- off Box). c) Number of routes and route hours per day by type of service as of December 31. d) General information about the Contractor and its most recent annual report. e) Other information or reports that County may reasonably request or require. Draft, March 13, 2012 -85- City of Hermosa Beach f) Gross annual Billings by service sector (Cart/Can, Bin and Roll-off Box). 8.3.4 Financial Report The City may, at City’s option, request and be provided with Contractor's financial reports/statements for the most recently completed fiscal year in connection with any audit, extraordinary rate adjustment request, or verification of other information required under this Agreement. The financial statements and footnotes shall be prepared in accordance with Generally Accepted Accounting Principles (“GAAP”) and audited, in accordance with Generally Accepted Auditing Standards (“GAAS”), by a certified public accountant (“CPA”) licensed (in good standing) to practice public accounting in the State of California as determined by the State of California Department of Consumer Affairs Board of Accountancy. The cost of preparation of the financial statements and audit shall be borne by Contractor as a direct cost of service. In addition to the above audited financial statements, Contractor shall provide to City the supplemental schedule of results of operations in the City on a compiled basis. The supplemental schedule will show Contractor’s specific revenues and expenses in connection with the operations provided for in this Agreement, separated from operations in other geographical areas. The supplemental schedule need not be audited; however, the total results of Contractor’s operations per the supplemental schedule must agree to the audited financial statements. 8.4 Reporting Adverse Information Contractor shall provide City two (2) copies (one to the City Manager, one to the City Attorney) of all reports, pleadings, applications, notifications, notices of violation, communications or other material relating in any way to Contractor’s performance of services pursuant to this Agreement, submitted by Contractor to, or received by Contractor from, the United States or California Environmental Protection Agency, CalRecycle, the Securities and Exchange Commission or any other federal, state or local agency, including any federal or state court. Copies shall be submitted to City within thirty (30) days of receipt by Contractor, or sooner if reasonably apparent that to do so is materially relevant; any responses by Contractor shall be submitted to City simultaneously with Contractor’s filing or submission of such matters with said agencies. Contractor’s routine correspondence to said agencies need not be routinely Draft, March 13, 2012 -86- City of Hermosa Beach submitted to City, but shall be made available to City promptly upon City’s written request. 8.5 Right to Inspect Records City shall have the right to inspect or review the specific documents or records required expressly or by inference pursuant to this Agreement, or any other similar records or reports of Contractor or its Affiliates that City shall deem, in its sole discretion, necessary to evaluate annual reports, and Contractor's performance provided for in this Agreement. Contractor shall make all records and documents to be reviewed and inspected by City as a part of any audit or other record review conducted by City, available for City’s review, inspection and copying within five (5) days of receiving written notice from City requesting the same. 8.6 Failure to Report The refusal or failure of Contractor to file any required reports, or to provide required information to City, or the inclusion of any materially false or misleading statement or representation by Contractor in such report shall be deemed a material breach of the Agreement as described in Section 11.1 and shall subject Contractor to all remedies which are available to the City under Agreement or otherwise. Draft, March 13, 2012 -87- City of Hermosa Beach ARTICLE 9 INDEMNIFICATION, INSURANCE, BOND AND LETTER OF CREDIT 9.1 Defense of Agreement Contractor agrees to, and shall timely, take all actions that are reasonably necessary to defend the validity and enforceability of this Agreement and shall pay all costs related to such defense. Contractor shall defend, indemnify, protect and hold harmless, the City, its officers, agents and employees from any and all claims, actions or proceedings to attack, set aside, void, annul or seek monetary damages resulting from an approval by the City of this Agreement. The City shall promptly notify Contractor of any such claim, action, or proceeding. The City and Contractor shall meet in good faith in an effort to come to a mutual agreement for a joint defense; provided that the City shall be entitled to select legal counsel of its choice to conduct the defense if an agreement cannot be reached. Contractor’s obligations to pay all costs, defend, indemnify, protect and hold harmless under this section shall not be altered in the event City retains separate counsel and shall also include reimbursement to City for time spent by its in- house City attorneys responding to the litigation. 9.2 Indemnification Contractor hereby agrees to and shall indemnify and hold harmless City, its elected and appointed boards, commissions, officers, employees, consultants and agents (collectively, “Indemnitees”) 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 or resulting from and in any way connected with (1) the negligence or willful misconduct of Contractor, its officers, employees, agents, contractors and/or subcontractors in performing services under this Agreement; (2) the failure of Contractor, its officers, employees, agents, contractors and/or subcontractors to comply in all respects with the provisions of this Agreement, 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, contractors and/or subcontractors in performing services under this Agreement Draft, March 13, 2012 -88- City of Hermosa Beach for which strict liability is imposed by law (including, without limitation, the Environmental Laws). The foregoing indemnity 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 the Indemnitees’ negligence, but shall not extend to matters resulting from the Indemnitees’ 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) the Indemnitees 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. Contractor, upon demand of City, made by and through the City Attorney, shall protect City and appear in and defend the Indemnitees 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, or asserting rights under the United States or California Constitutions or any federal or state law to provide Solid Waste Handling Services in the City. 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. 9.3 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 harmless Indemnitees 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 Draft, March 13, 2012 -89- City of Hermosa Beach 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 Indemnitee is liable, responsible or in any way obligated to investigate, assess, monitor, study, test, treat, remove, remediate, or otherwise clean up, 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 any Environmental Law; 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 of 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; 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 section, the term "Hazardous Contaminant" shall mean any Hazardous Substance, any Hazardous Waste, 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 Draft, March 13, 2012 -90- City of Hermosa Beach amendments to any referenced statutory or 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. 9.4 AB 939 Indemnification and Guarantee A. Contractor agrees to indemnify and hold harmless City from and against all fines and/or penalties imposed by CalRecycle in the event the source reduction and Recycling goals or any other requirement of AB 939 are not met by City with respect to the waste stream Collected under this Agreement. B. Contractor warrants and represents that it is familiar with City's waste characterization study as set forth in City's Source Recovery and Recycling Element (“SRRE”), and that it has the ability to and will provide sufficient programs and services to ensure 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, with respect to that portion of the Solid Waste generated in City that is the subject of this Agreement. 9.5 Insurance 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, 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. A. 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). Draft, March 13, 2012 -91- City of Hermosa Beach 2. The most recent editions of Insurance Services Office form number CA 00 01 covering Automobile Liability, code 1 "any auto" and endorsement CA 00 25. 3. Workers' Compensation insurance as required by the Labor Code of the State of California and Employers Liability insurance. B. Minimum Limits of Insurance. Contractor shall maintain in force for the term of this Agreement limits no less than: 1. Comprehensive General Liability: Five Million Dollars ($5,000,000) limit aggregate and Five Million Dollars ($5,000,000) limit per occurrence for bodily injury, Personal injury and property damage. 2. Automobile Liability: Five Million Dollars ($5,000,000) limit aggregate and Five Million Dollars ($5,000,000) single limit per accident for bodily injury and property damage. 3. Workers' Compensation and Employers Liability: Workers' compensation limits as required by the Labor Code of the State of California and Employers Liability limits of One Million Dollars ($1,000,000) per accident, One Million Dollars ($1,000,000) policy limit for bodily injury or disease; One Million Dollars ($1,000,000) per each employee bodily injury or disease. 4. Pollution and/or Environmental Liability: [TO BE DETERMINED]. C. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by City. At the option of City, either: the insurer shall reduce or eliminate such deductibles or self-insured retention’s as respects City, its officials, employees and agents; or Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. D. Other Insurance Provisions. The policies are to contain, or be endorsed to contain, the following provisions: 1. General Liability and Automobile Liability Coverages Draft, March 13, 2012 -92- City of Hermosa Beach a) City, its elective and appointive boards, commissions, officials, employees, agents and volunteers are to be named as additional insureds as respects: liability arising out of activities performed by or on behalf of Contractor; products and completed operations of Contractor; Premises owned, leased or used by Contractor; or vehicles owned, leased, hired or borrowed by Contractor. The coverage shall contain no special limitations on the scope of protection afforded to City, its elective and appointive boards, commissions, officials, employees, agents or volunteers. b) Contractor's insurance coverage shall be primary insurance as respects City, its elective and appointive boards, commissions, officials, employees, agents and volunteers. Any insurance or self- insurance maintained by City, its officials, elective and appointive boards, commissions, employees, agents or volunteers shall be excess of Contractor's insurance and shall not contribute with it. c) Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its officials, elective and appointive boards, commissions, employees, agents or volunteers. d) Coverage shall state that Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. e) The commercial general and automobile liability policies required by this Agreement shall allow City, as additional insured, to satisfy the self-insured retention (“SIR”) and/or deductible of the policy in lieu of the Contractor (as the named insured) should Contractor fail to pay the SIR or deductible requirements. The amount of the SIR or deductible shall be subject to the approval of the City Attorney and the Finance Director. Contractor understands and agrees that satisfaction of this requirement is an express condition precedent to the effectiveness of this Agreement. Failure by Contractor as primary insured to pay its SIR or deductible constitutes a material breach of this Agreement. Should City pay the SIR or deductible on Contractor’s behalf upon the Contractor’s failure or refusal to do Draft, March 13, 2012 -93- City of Hermosa Beach so in order to secure defense and indemnification as an additional insured under the policy, City may include such amounts as damages in any action against Contractor for breach of this Agreement in addition to any other damages incurred by City due to the breach. 2. Workers' Compensation and Employers Liability Coverage - The insurer shall agree to waive all rights of subrogation against City, its officials, elective and appointive boards, commissions, employees, agents and volunteers for losses arising from work performed by Contractor for City. 3. All Coverages - Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to City. E. 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 edition of Best's Insurance Reports of size category VII or larger and a rating classification of A or better. F. Verification of Coverage. Contractor shall furnish City with certificates of insurance and with original endorsements affecting coverage required by this clause. Such certificates shall show the type and amount of coverage, effective dates and dates of expiration of policies, and shall have all required endorsements. 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. Renewal certificates will be furnished periodically to City to demonstrate maintenance of the required coverage throughout the Term. G. Companies and Subcontractors. Contractor shall include all companies and subcontractors as insureds under its policies or shall furnish separate certificates and Draft, March 13, 2012 -94- City of Hermosa Beach endorsements for each contractor and subcontractor. All coverages for companies and subcontractors shall be subject to all of the requirements stated herein. H. Required Endorsements 1. The Workers' Compensation policy shall contain an endorsement in substantially the following form: "Thirty (30) days (or ten (10) days in the event of cancellation for non- payment) prior written notice by certified mail, return receipt requested, shall be given to City in the event of cancellation, reduction in coverage, or non-renewal of this policy. Such notice shall be sent to: City Manager City of Hermosa Beach 1315 Valley Drive Hermosa Beach, California 90254 2. The Public Liability policy shall contain endorsements in substantially the following form: a) "Thirty (30) days (or ten (10) days in the event of cancellation for non-payment) prior written notice shall be given to City in the event of cancellation, reduction in coverage, or non-renewal of this policy. Such notice shall be sent to: City Manager City of Hermosa Beach 1315 Valley Drive Hermosa Beach, California 90254 b) "Contractor agrees to endorse the third party general liability coverage required herein to include as additional insureds City of Hermosa Beach, its officials, employees and agents, using standard ISO endorsement No. CB 2010 with an edition date of 1985, or equivalent provisions as determined acceptable by the Office of the City Attorney for the City of Hermosa Beach in its sole discretion. Contractor also agrees to require all contractors, subcontractors and Draft, March 13, 2012 -95- City of Hermosa Beach anyone else involved in any way with the project contemplated by this agreement, to do likewise." c) "This policy shall be considered primary insurance as respects any other valid and collectible insurance maintained by City, including any self-insured retention or program of self-insurance, and any other such insurance shall be considered excess insurance only." d) "Inclusion of City as an insured shall not affect City's rights as respects any claim, demand, suit or judgment brought or recovered against Contractor. This policy shall protect Contractor and City in the same manner as though a separate policy had been issued to each, but this shall not operate to increase Contractor's liability as set forth in the policy beyond the amount shown or to which Contractor would have been liable if only one party had been named as an insured." e) “The City, as additional insured, shall be permitted to satisfy the self-insured retention (“SIR”) and/or deductible of the policy in lieu of the Contractor (as the named insured) should Contractor fail to pay the SIR or deductible requirements. “ I. Other Insurance Requirements 1. In the event any services are delegated to another company or subcontractor, Contractor shall require such company or subcontractor to provide statutory workers' compensation insurance and employer's liability insurance for all of the company’s or subcontractor's employees engaged in the work in accordance with this Section 9.5. The liability insurance required by this Section 9.4 shall cover all companies or subcontractors or the companies or subcontractors must furnish evidence of insurance provided by it meeting all of the requirements of this Section 9.5. 2. Contractor shall comply with all requirements of the insurers issuing policies. The carrying of insurance shall not relieve Contractor of any obligation under this Agreement. If any claim exceeding the amount of any deductibles or self-insured reserves is made by any third Person Draft, March 13, 2012 -96- City of Hermosa Beach against Contractor or any company or subcontractor on account of any occurrence related to this Agreement, Contractor shall promptly report the facts in writing to the insurance carrier and to City. If Contractor fails to procure and maintain any insurance required by this Agreement, City may take out and maintain, at Contractor's expense, such insurance as it may deem proper and deduct the cost thereof from any moneys due Contractor. 9.6 Faithful Performance Bond Concurrently with execution of this Agreement, Contractor shall deliver to City a performance bond in the sum of the amount of Two Hundred Fifty Thousand Dollars ($__________), similar to the form provided in Exhibit 6, which secures the faithful performance of this Agreement, including, without limitation, payment of any penalty and the funding of any work to cure a breach of this Agreement. The bond shall contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his or her power of attorney. 9.7 Faithful Performance Letter of Credit In addition to a corporate surety bond as noted in Section 9.6 above, Contractor shall furnish an irrevocable letter of credit in the amount of Two Hundred Fifty Thousand Dollars ($__________), from a financial institution acceptable to the City and in a form acceptable to the City Attorney as security for the performance of this Agreement (the “LOC”). The LOC shall be the sole responsibility of Contractor, and shall be released within thirty (30) days after both (i) the expiration of the term of this Agreement, or upon the earlier termination hereof; and (ii) Contractor’s satisfactory performance of all obligations hereunder. 9.8 Forfeiture of Performance 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 performance bond which is necessary to recompense and make whole the City forfeited to the City. Upon partial or full forfeiture of the performance bond, Contractor shall restore the performance bond to its face amount within thirty (30) days of the City’s Draft, March 13, 2012 -97- City of Hermosa Beach declaration. Failure to restore the performance bond to its full amount within thirty (30) days shall be a material breach of the Agreement. 9.9 Forfeiture of Letter Of Credit Thirty (30) days following City providing Contractor with written notice of its failure to pay City any amount owing under this Agreement, the LOC may be drawn upon by City for purposes including, but not limited to: a. Payment of sums due under the terms of this Agreement which Contractor has failed to timely pay to City; and/or, b. Reimbursement of costs borne by City to correct violations of this Agreement not corrected by Contractor, including but not limited to the liquidated damages described in Section 11.3. City may draw upon the entire LOC and convert it to a cash deposit if Contractor fails to cause the LOC to be extended or replaced with another satisfactory letter of credit no later than sixty (60) days prior to its expiration during the term hereof. 9.10 Performance Security Beyond Service Term Some Agreement requirements extend beyond the Term and other requirements, such as minimum Diversion rates per Section 4.2.5, will not be substantiated until after the final service date. Therefore, Contractor shall not terminate the Performance Bond or LOC, and will renew them to ensure continuous availability to the City, until receiving a written release from the City. The Performance Bond and LOC will automatically expire at the end of twenty-four (24) months after the end of the Term, unless City has notified Contractor in writing as to a specific contractual area of concern yet to be resolved, instructing Contractor to retain all or a portion of the Performance Bond and/or LOC. Neither permission from the City to discontinue holding the Performance Bond and/or LOC, nor permitted expiration after twenty-four (24) months, shall relieve Contractor of payments to the City that may be due, or may become due. Draft, March 13, 2012 -98- City of Hermosa Beach ARTICLE 10 CITY'S RIGHT TO PERFORM SERVICE 10.1 General In the event that Contractor, for any reason whatsoever, fails, refuses or is unable to Collect, Recycle, process, transport or Dispose of any or all Solid Waste as required by this Agreement, at the time and in the manner provided in this Agreement, 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, in such a manner, or for such a time that such accumulation endangers or menaces the public health, safety or welfare, then City shall have the right, but not the obligation, (1) to perform, or cause to be performed by a third party, such services itself with its own or other personnel without liability to Contractor; and/or (2) to take possession of any or all of Contractor's land, equipment and other property used or useful in the Collection and transportation of Solid Waste, and to use such property, directly or through contracting with a third party, to Collect and transport any Solid Waste generated within City which Contractor would otherwise be obligated to Collect, transport and properly Dispose of or process pursuant to this Agreement. Notice of City’s determination to effect its rights under this Section may be given orally by telephone to Contractor at its principal office and shall be effective immediately. Written confirmation of such oral notification shall be sent to Contractor within twenty- four (24) hours of the oral notification. All actions that may be taken by City under this Article 10 may be taken directly, or through City contracting with a third-party. Contractor further agrees that in such event: A. It will take direction from City to effect the transfer of possession of equipment and property to City for City's use, or for use by any Person or entity designated by the City. B. It will, if City so requests, keep in good repair and condition all of such equipment and property, provide all motor vehicles with fuel, oil and other service, and provide such other service as may be necessary to maintain said property in operational condition. Draft, March 13, 2012 -99- City of Hermosa Beach C. City may immediately engage all or any personnel necessary or useful for the Collection and transportation of Solid Waste, including, if City so desires, employees previously or then employed by Contractor. Contractor further agrees, if City so requests, to furnish City the services of any or all management or office personnel employed by Contractor whose services are necessary or useful for Solid Waste Collection, transportation, processing and Disposal operations and for the Billing and Collection of fees for these services. City agrees that it assumes complete responsibility for the proper and normal use of such equipment and facilities while in its possession. If the interruption or discontinuance in service is caused by any of the reasons listed in Section 11.4, City shall pay to Contractor the reasonable rental value of the equipment and facilities, possession of which is taken by City, for the period of City's possession, if any, which extends beyond the period of time for which Contractor has rendered Bills in advance of service, for the class of service involved. If the interruption or discontinuance in service is caused by any other reason, regardless of City’s implementation of options under this agreement, City may consider this a default. 10.2 Billing and Compensation to City During City's Possession Contractor agrees that it shall reimburse City for any and all costs and expenses incurred by City beyond revenue Billed and received by City in taking over possession of the above-mentioned equipment and property for Solid Waste service in such manner and to an extent as would otherwise be required of Contractor under the terms of this Agreement. Such reimbursement shall be made from time to time after submission by City to Contractor of each statement listing such costs and expenses, but in no event later than five (5) working days from and after each such submission. 10.3 City's Right to Relinquish Possession It is further mutually agreed that City may at any time at its discretion relinquish possession of any or all of the above-mentioned property to Contractor and thereupon demand that Contractor resume the Solid Waste Handling Services as provided in this Agreement, whereupon Contractor shall be bound to resume the same. Draft, March 13, 2012 -100- City of Hermosa Beach 10.4 City's Possession Not A Taking It is expressly agreed between the Parties that City's exercise of its rights under this article; (1) does not constitute a taking of private property for which compensation must be paid, (2) shall not create any liability on the part of City to Contractor, and (3) does not exempt Contractor from any of the indemnity and insurance provisions of this Agreement, which are meant to extend to circumstances arising under this section provided that Contractor is not required to indemnify City against claims and damages arising from the sole negligence of City, its elective and appointive boards, commissions, officers, employees and agents in the operation of Collection vehicles during the time City has taken possession of such vehicles. 10.5 Duration of City's Possession City's right pursuant to this Article to retain temporary possession of Contractor's facilities and equipment, and to render Collection services, shall terminate when City determines that such services can be resumed by Contractor, or when City no longer reasonably requires such property or equipment. In any case, City has no obligation to maintain possession of Contractor's property or equipment and/or continue its use for any period of time and may at any time, in its sole discretion, relinquish possession to Contractor. Draft, March 13, 2012 -101- City of Hermosa Beach ARTICLE 11 DEFAULT, REMEDIES AND LIQUIDATED DAMAGES 11.1 Events of Default All provisions of this Agreement to be performed by Contractor are considered material. Each of the following (by way of example and not as an exhaustive list) shall constitute an event of default by the Contractor. A. Fraud or Deceit or Misrepresentation. If the Contractor engages in, or attempts to practice, any fraud or deceit upon City or makes a misrepresentation regarding material information to City. B. Insolvency or Bankruptcy. If Contractor becomes insolvent, unable, or unwilling to pay its debts, files a bankruptcy petition or takes steps to liquidate its assets. C. Failure to Maintain Insurance Coverage and Valid Permits and Licenses. If Contractor fails to provide or maintain in full force and effect the Workers' Compensation, liability, or indemnification coverage, as well as valid permits and licenses as required by this Agreement. D. Violations of Regulation. If Contractor violates any orders or filings of any regulatory body having jurisdiction over Contractor relative to this Agreement, provided that Contractor may contest any such orders or filings by appropriate proceedings conducted in good faith, in which case no breach of the Franchise and this Agreement shall be deemed to have occurred until a final decision adverse to the Contractor is entered. E. Failure to Pay. If Contractor fails to make any payments required under this Agreement and/or refuses to provide City, within ten (10) days of the demand, with required information, reports, and/or records in a timely manner as provided for in the Agreement. F. Failure to Cooperate with Audits. Failure to complete, perform or cooperate with any audit as described by this Agreement. Draft, March 13, 2012 -102- City of Hermosa Beach G. Failure to Submit Reports or Documentation. Failure to complete or to provide required reports or documents to City as required by this Agreement. H. Acts or Omissions. A. Any act or omission by Contractor relative to the services provided under this Agreement which violates the terms, conditions, or requirements of this Agreement, or AB 939, or any law, statute, ordinance, order, directive, rule, or regulation issued pursuant to AB 939 shall constitute a default by Contractor. Any failure to correct or remedy any such violation within the time set in the written notice of the violation or, if Contractor cannot reasonably correct or remedy the breach within the time set forth in such notice, if Contractor should fail to commence to correct or remedy such violation within the time set forth in such notice and diligently effect such correction or remedy thereafter, shall constitute a default by Contractor. B. Any situation in which Contractor or any of its officers, directors or employees is found guilty of any crime related to the performance of this Agreement, or of any crime related to anti-trust activities, illegal transport or Disposal of hazardous or toxic materials, or bribery of public officials shall constitute a default by Contractor. The term “found guilty” shall be deemed to include any judicial determination that Contractor or any of Contractor’s officers, directors or employees is guilty as well as any admission of guilt by Contractor or any of Contractor’s officers, directors or employees including, but not limited to, the plea of “guilty”, “nolo contendere”, “no contest”, and “guilty to a lesser charge.” I. False or Misleading Statements. Any representation or disclosure made to City by Contractor in connection with or as an inducement to entering into this Agreement, or any future amendment to this Agreement, which proves to be false or misleading in any material respect as of the time such representation or disclosure is made, whether or not any such representation or disclosure appears as part of this Agreement. J. Attachment. The seizure of, attachment of, or levy on, the operating equipment of Contractor, including, without limits, its equipment, maintenance or office facilities, or any part thereof. K. Suspension or Termination of Service. If Contractor ceases to provide all or a portion of the Collection, processing or Recycling services, or any other Solid Waste Handling Services as required under this Agreement (including, without limitation, Draft, March 13, 2012 -103- City of Hermosa Beach failure to provide service due to labor unrest including strike, work stoppage or slowdown, sick-out, picketing, or other concerted job action, unless all requirements of Section 11.4 are met) for two (2) or more consecutive days. L. Failure to Provide Assurance of Performance. If Contractor fails to provide reasonable assurances of performance as required under Section 11.6. M. Commingling of Recyclables With Refuse / Landfilling of Recyclables. If Contractor empties Containers of properly set out Recyclable Materials or Green Waste into a Refuse load, or transports Recyclable Materials or Green Waste to a landfill or other location at which the material will not be diverted from landfilling (with the exception of Green Waste used as alternative daily cover provided full Diversion credit is received). N. Failure to Meet Section 4.2.5 Diversion Goal. Failure to meet the minimum recycling requirements identified in Section 4.2.5 for two (2) consecutive calendar years. Contractor shall have five (5) business days from the time it is given notification by City to cure any default arising under subsections E, F, G, J, K, L and M provided, however, that City shall not be obligated to provide Contractor with a notice and cure opportunity if Contractor has committed the same or similar breach within a twenty- four (24) month period. It is expressly understood that Contractor is not entitled to receive notice of default, or to cure such default, with respect to those matters listed in subsections A, B, C, D, H, I, and N above. 11.2 Right to Terminate Upon Default and Right to Specific Performance If Contractor commits a material breach included in Section 11.1 above (and, if permitted to cure, does not cure it within the five days), City shall be entitled to unilaterally terminate this Agreement or impose other such sanctions (which may include financial sanctions, temporary suspensions or any other conditions it deems appropriate short of termination) as it shall deem proper. Should City decide to terminate this Agreement upon a default by Contractor, City shall have the right to do so upon giving ten (10) days’ notice to Contractor, and shall not be required to take any further action (such as holding any hearing, bringing any suit or taking any other action.) Draft, March 13, 2012 -104- City of Hermosa Beach City may seek to revoke or suspend this Agreement for violation of any other provisions of this Agreement in accordance with the Hermosa Beach Municipal Code Section 8.12.090-130. City's rights to terminate this Agreement and to take possession of Contractor's Facility and/or equipment are not exclusive, and City's termination of this Agreement shall not constitute an election of remedies. Instead, such remedies shall be in addition to any and all other legal and equitable rights and remedies which City may have. By virtue of the nature of this Agreement, the urgency of timely continuous and high- quality service, the time required to effect alternative service, and the rights granted by City to Contractor, the remedy of damages for a breach hereof by Contractor is inadequate and City shall be entitled to seek injunctive relief and/or specific performance of any breach of this Agreement. 11.3 Liquidated Damages A. General. 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 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. B. 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 Draft, March 13, 2012 -105- City of Hermosa Beach 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 under this Article 11, 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 City Initial Here Initial Here Contractor agrees to pay (as liquidated damages and not as a penalty) the amounts set forth below: 1. Collection Reliability a) For each failure to commence service to a new Customer account within seven (7) days after order, which exceeds five (5) such failures per calendar year: $50.00 b) For each failure, which exceeds ten (10) such failures annually, to Collect Solid Waste from any established Customer account on the scheduled Collection day and not make up the Collection within the time allotted per Section 4.6.1.3: $50.00 Draft, March 13, 2012 -106- City of Hermosa Beach 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: $50.00 2. Collection Quality a) For each occurrence of failure to properly return empty Containers to avoid pedestrian or vehicular traffic impediments or to place Containers upright which exceeds ten (10) such occurrences per calendar year: $25.00 b) For each occurrence in violation of the City’s noise ordinance which exceeds ten (10) per calendar year: $150.00 c) For each occurrence of Collecting Solid Waste during unauthorized hours which exceeds five (5) such occurrences per calendar year: $150.00 d) For each failure to clean up Solid Waste spilled from Solid Waste Containers within ninety (90) minutes which exceeds ten (10) such failures per calendar year: $150.00 3. Customer Responsiveness a) For each failure to initially respond to a Customer complaint within one (1) business day in accordance with Section 5.1.2, and for each additional day in which the complaint is not addressed, which exceeds five (5) per calendar year: $100.00 b) For each failure to process Customer complaints as required by Article 5, Section 5.1.2, which exceeds five (5) per calendar year: $100.00 c) For each failure to remove graffiti from Containers, or to replace with Containers bearing no graffiti, within twenty-four (24) hours (except Sundays and holidays) of request from City or Customer, which exceeds five (5) per calendar year: $ 50.00 per day d) For each failure to repair or replace a damaged or missing Container within three (3) business days of request from City or Customer, which exceeds five (5) per calendar year: $ 50.00 per day Draft, March 13, 2012 -107- City of Hermosa Beach e) For each failure to process a claim for damages within thirty (30) days from the date submitted to Contractor: $100.00 f) For each additional thirty (30) day increment of time in which Contractor has failed to resolve a claim for damages within thirty (30) days from the claim date: $100.00 4. Diversion Efforts a) For each calendar year in which Contractor fails to provide support to the City within thirty (30) days of year-end, documenting that it diverted at least the minimum tonnage required by Section 4.2.5 under this Agreement: $25 for each ton below tonnage level necessary to meet Diversion goal b) For every Recycling or Green Waste Container Collected as Refuse without issuing a red tag per Section 4.2.3 which exceeds ten (10) failures per calendar year: $25 per Cart 5. Timeliness of Submissions to City 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: i) Monthly Reports: $50 per day ii) Annual Reports: $100 per day 6. Accuracy of Billing Each Customer invoice that is not prepared in accordance with the City’s approved rate schedule, or includes charges not identified on the City-approved rate schedule or otherwise approved in writing by the City, in excess of ten (10) invoices annually, and that are not accurately corrected in the next Billing run: $25 per invoice, not to exceed $2,500 per Billing run 7. Cooperation with Service Provider Transition Draft, March 13, 2012 -108- City of Hermosa Beach a) For each day routing information requested by City Manager in accordance with Section 12.8 is received after City-established due dates, both for preparation of a request for proposals and for new service provider’s implementation of service : $1,000/day b) For each day delivery of keys, access codes, remote controls, or other means of access to Solid Waste Containers is delayed beyond one (1) day prior to new service provider servicing Customers with access issues, as described in Section 12.8: $1,000/day c) For delay in not meeting the requirements contained in Sections 7.3 and 12.8 in a timely manner, in addition to the daily liquidated damages for breach under 7(a) and 7(b) above, liquidated damages of: $10,000 City Manager may determine the occurrence of events giving rise to liquidated damages through the observation of its own employees or representative or investigation of Customer complaints. Prior to assessing liquidated damages, City Manager 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 Manager relating to incident(s)/non-performance. Contractor may, within ten (10) days after receiving the notice, request a meeting with City Manager. Contractor may present evidence in writing and through testimony of its employees and others relevant to the incident(s)/non-performance. City Manager will provide Contractor with a written explanation of its determination on each incident(s)/non-performance prior to authorizing the assessment of liquidated damages. The decision of City Manager shall be final. C. Amount. City Manager may assess liquidated damages for each calendar day or event, as appropriate, that Contractor is determined to be liable in accordance with this Agreement. D. Timing of Payment. Contractor shall pay any liquidated damages assessed by City Manager within ten (10) days after they are assessed. If they are not paid within the ten (10) day period, City may proceed against the performance bond required by the Agreement or find Contractor in default and terminate this Agreement pursuant to Section 11.2, or both. Draft, March 13, 2012 -109- City of Hermosa Beach 11.4 Excuse from Performance 11.4.1 Force Majeure The Parties shall be excused from performing their respective obligations hereunder in the event they are prevented from so performing by reason of floods, earthquakes, other natural disasters, war, civil insurrection, riots, acts of any government (including judicial action), and other similar catastrophic events which are beyond the control of and not the fault of the party claiming excuse from performance hereunder. 11.4.2 Labor Unrest Labor unrest, including but not limited to strike, work stoppage or slowdown, sick-out, picketing, or other concerted job action conducted by the Contractor's employees or directed at the Contractor will be considered an excuse from performance to the extent that Contractor meets the terms of this Section 11.4. Notwithstanding other remedies to which the City shall be entitled under this Agreement in event of failure to perform, in the event of Contractor’s failure to perform, or anticipated failure to perform, due to labor unrest, Contractor shall: 1) Provide a contingency plan to the City Manager within ninety (90) days of the execution of this Agreement demonstrating how services will be provided during the period of labor unrest. The contingency plan is subject to City approval, and Contractor shall amend the plan to meet City requirements, including reasonably demonstrating how City’s basic Collection and sanitary needs will be met to the City’s satisfaction. Plan shall address, at a minimum, the priority of Collection by customer type (residents, hospitals, restaurants, nursing homes, etc.) and waste streams, additional Collection options to be provided (drop-off sites, etc.), source of additional personnel to be utilized, and detailed communications procedures to be used. 2) Notify City Manager sixty (60) days prior to the expiration of its drivers’ labor agreement. 3) Meet the requirements agreed to in the contingency plan. 4) Meet requirements of 11.4.3 below. Draft, March 13, 2012 -110- City of Hermosa Beach Contractor shall meet all requirements under this Section or City may choose to revoke this excuse from performance offered under this Agreement and may choose to use enforcement provisions under this Agreement, including Sections 11.1, 11.2 and 11.3, in which case Contractor is not excused from performance and Contractor shall be obligated to continue to provide service notwithstanding the occurrence of any or all of such events. 11.4.3 Procedures In Event of Excused Performance The party claiming excuse from performance under Section 11.4.1 or 11.4.2 shall, within two (2) days after such party has notice of such cause, give the other party notice of the facts constituting such cause and asserting its claim to excuse under this section. Throughout service disruption, Contractor shall: 1) Provide City with a minimum of daily service updates. 2) Notify Customers on a real-time basis as to alternative Collection procedures. At a minimum, Contractor shall update its website and shall provide ongoing updates to City for use on its website, and a “reverse 911” contact method to reach all possible Customers. Should enhanced contact technologies become available, Contractor shall use such methods upon approval from City. The interruption or discontinuance of the Contractor's services caused by one or more of the events excused shall not constitute a default by the Contractor under this Agreement. Notwithstanding the foregoing, however, if the Contractor is excused from performing its obligations hereunder for any of the causes listed in this section for a period of thirty (30) days or more, the City shall nevertheless have the right, in its sole discretion, to terminate this Agreement by giving ten (10) days' notice, in which case the provisions relative to taking possession of Contractor’s land, equipment and other property and engaging the Contractor's personnel in Article 10 and this Article 11 will apply. 11.5 Notice, Hearing and Appeal of City Breach (A) 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. A hearing officer shall be appointed by the City Manager, and the hearing shall occur as soon as reasonably possible, or on Draft, March 13, 2012 -111- City of Hermosa Beach such date as mutually agreed 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 shall be advisory only. (B) 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 a 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 officers decision. (C) 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. 11.6 Assurance of Performance City may, at its option and in addition to all other remedies it may have, demand from Contractor reasonable assurances of timely and proper performance of this Agreement, in such form and substance as City may require. If Contractor fails or refuses to provide satisfactory assurances of timely and proper performance in the form and by the date required by City, such failure or refusal shall be an event of default. Draft, March 13, 2012 -112- City of Hermosa Beach ARTICLE 12 MISCELLANEOUS PROVISIONS 12.1 Relationship of Parties The Parties intend that Contractor shall perform the services required by this Agreement as an independent contractor engaged by City and not as an officer or employee of City, nor as a partner of or joint venture with City. No employee or agent or Contractor shall be or shall be deemed to be an employee or agent of City. Except as expressly provided herein, Contractor shall have the exclusive control over the manner and means of conducting the Solid Waste Handling Services performed under this Agreement, and all Persons performing such services. Contractor shall be solely responsible for the acts and omissions of its officers, employees, Affiliates, contractors, subcontractors and agents. Neither Contractor nor its officers, employees, Affiliates, contractors, subcontractors and agents shall obtain any rights to retirement benefits, workers' compensation benefits, or any other benefits which accrue to City employees by virtue of their employment with City. 12.2 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 and regulations of the United States, the State of California, and any federal, state, regional or local administrative and regulatory agencies, now in force and as they may be enacted, issued or amended, including but not limited to the payment of prevailing wage, if applicable. 12.3 Governing Law This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California. 12.4 Jurisdiction Except for those matters where Federal Courts have exclusive jurisdiction, any lawsuits between the Parties arising out of this Agreement shall be brought and concluded in the courts of the State of California, which shall have exclusive jurisdiction over such lawsuits. Draft, March 13, 2012 -113- City of Hermosa Beach With respect to venue, the Parties agree that this Agreement is made in and will be performed in Los Angeles County. 12.5 Assignment Except as may be provided for in Article 10 (City's Right to Perform Service), Contractor shall not assign its rights, nor delegate, subcontract or otherwise transfer its obligations under this Agreement (collectively referred to as an “assignment”) to any other Person without the prior written consent of City. Any such assignment made without the consent of City shall be void and the attempted assignment shall constitute a material breach of this Agreement. 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 outstanding common stock of Contractor to a third party provided said sale, exchange or transfer may result in a change of control of Contractor; (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 of 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; and (v) 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. Contractor acknowledges that this Agreement involved 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 Draft, March 13, 2012 -114- City of Hermosa Beach 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. If Contractor requests City's consideration of and consent to an assignment, City may deny or approve such request in its sole and absolute discretion. Any request for an assignment must be approved 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 pay City its reasonable expenses for attorney's fees and investigation 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. An advance payment towards expenses may be requested by City prior to City consideration of any assignment request and 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) Contractor shall pay a transfer fee to the City equal to one percent (1%) of the annual Gross Receipts for the most recent twelve (12) months prior to the effective date of the change of ownership, multiplied by the number of remaining years, or fraction thereof, under this Agreement. (This requirement will not be required in the event of an assignment to an Affiliate of Contractor); c) Contractor shall furnish City with audited financial statements for itself, and the proposed assignee's operations for the immediately preceding three (3) operating years. (This requirement shall not be required of an Affiliate.) d) Contractor shall furnish City with a pro-forma financial statement (income statement and balance sheet) for the proposed assignee with the projected results of operations assuming that the assignment is completed. Such pro-forma financial statement shall reflect any debt to be incurred by the assignee as part of the acquisition of Contractor’s operations. (This requirement shall not be required of an Affiliate.) Draft, March 13, 2012 -115- City of Hermosa Beach e) 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 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 jurisdiction over its Solid Waste management operations due to any significant failure to comply with state, federal or local Environmental Laws and that the assignee has provided City with a complete list of any 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. Under no circumstances shall City be obliged to consider any proposed assignment by City if Contractor is in default at any time during the period of consideration. Should City consent to any assignment request, such assignment shall not take effect until all conditions relating to City’s approval have been met. 12.6 Contracting or Subcontracting Contractor shall not utilize any subcontractors, in direct interaction with City customers or City staff, for the performance of the services under this Agreement, except with the consent of the City Manager, which may be withheld or delayed at its sole and absolute discretion. 12.7 Binding on Assigns The provisions of this Agreement shall inure to the benefit to and be binding on the permitted assigns (if any) of the Parties. 12.8 Cooperation in Preparation for Termination or Expiration of Contract Prior to, and 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 Draft, March 13, 2012 -116- City of Hermosa Beach subsequent Solid Waste enterprise it designates to assure a smooth transition of Solid Waste Handling 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. Cooperation is required in a timely manner to assist with the City’s preparation of a request for proposals or a new agreement, as well as at the time of transition. 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 a new service provider with all keys, security codes and remote controls used to access garages and Bin enclosures. Contractor shall be responsible for coordinating transfer immediately after Contractor’s final pickups, so as not to disrupt service. 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 ninety (90) days prior to the transition date, and provide an updated list two (2) weeks before the transition and a final list of changes the day before the transition. Contractor shall provide means of access to the new service provider at least one (1) full business day prior to the first day of Collection by another party, and always within sufficient time so as not to impede in any way the new service provider from easily servicing all Containers. 12.9 Parties in Interest Nothing in this Agreement, whether express or implied, is intended to confer any rights on any Persons other than the Parties to it and their representatives, successors and permitted assigns. 12.10 Waiver The waiver by either party of any breach or violation of any provisions of this Agreement shall not be deemed to be a waiver of any breach or violation of any other provision nor of any subsequent breach of violation of the same or any other provision. The subsequent acceptance by either Party of any moneys which become due hereunder shall not be deemed to be a waiver of any pre-existing or concurrent breach or violation by the other Party of any provision of this Agreement. Draft, March 13, 2012 -117- City of Hermosa Beach 12.11 Contractor's Investigation Contractor has made an independent investigation (satisfactory to Contractor) of the conditions and circumstances surrounding the Agreement and the work to be performed by it. 12.12 Condemnation City fully reserves the rights to acquire Contractor's property utilized in the performance of this Agreement, by purchase or through the exercise of the right of eminent domain. This provision is additive, and not intended to alter the rights of the Parties set forth in Article 10. 12.13 Notice All notices, demands, requests, proposals, approvals, consents and other communications which this Agreement requires, authorizes or contemplates shall be in writing and shall either be personally delivered to a representative of the Parties at the address below or be deposited in the United States mail, first class postage prepaid, addressed as follows: If to City: City Manager City of Hermosa Beach 1315 Valley Drive Hermosa Beach, California 90254 If to Contractor: ___________________ ___________________ ____________________ ____________________ The address to which communications may be delivered may be changed from time to time by a written notice given in accordance with this section. Notice shall be deemed given on the day it is personally delivered or, if mailed, three (3) days from the date it is deposited in the mail. Draft, March 13, 2012 -118- City of Hermosa Beach 12.14 Representatives of the Parties References in this Agreement to the "City" shall mean the City Council and all actions to be taken by City shall be taken by the City Council except as expressly provided herein. The City Council may delegate, in writing, authority to the City Manager, and/or to other City employees and may permit such employees, in turn, to delegate in writing some or all of such authority to subordinate employees. Contractor may rely upon actions taken by such delegates if they are within the scope of the authority so delegated to them. Contractor shall, by the Effective Date, designate in writing a responsible officer who shall serve as the representative of Contractor in all matters related to the Agreement and shall inform City in writing of such designation and of any limitations upon his or her authority to bind Contractor. City may rely upon action taken by such designated representative as actions of Contractor unless they are outside the scope of the authority expressly delegated to him/her by Contractor as communicated to City. 12.15 City Free to Negotiate with Third Parties City may investigate all options for the Collection, transporting, Recycling, processing and Disposal of Solid Waste for periods during which this Agreement has expired or been terminated. Without limiting the generality of the foregoing, City may solicit proposals from Contractor and from third parties for the provision of Solid Waste Handling Services which are the subject of this Agreement, including without limitation Collection services, Disposal services, Recycling services, Green Waste services and processing, and any combination thereof, and may negotiate and execute agreements for such services which will take effect upon the expiration or earlier termination of this Agreement pursuant to Section 11.1 or otherwise. 12.16 Compliance with Municipal Code Contractor shall comply with those provisions of the municipal code of City which are applicable, and with any and all amendments to such applicable provisions during the Term of this Agreement. Draft, March 13, 2012 -119- City of Hermosa Beach 12.17 Privacy Contractor shall strictly observe and protect the rights of privacy of Customers. Information identifying individual Customers or the composition or contents of a Customer's waste stream shall not be revealed to any Person, governmental unit, private agency, or company, unless upon the authority of a court of law, by statute, 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 stream analyses which may be required by AB 939. This provision shall not apply to reports or records provided to City pursuant to this Agreement. 12.18 Proprietary Information, Public Records The City acknowledges that a number of the records and reports of Contractor are proprietary and confidential. Contractor is obligated to permit City inspection of its records on demand and to provide copies to City where requested. City will endeavor to maintain the confidentiality of all proprietary information provided by Contractor. Notwithstanding the foregoing, any documents provided by Contractor to City that are public records may be disclosed pursuant to a proper public records request. 12.19 Entire Agreement This Agreement contains the entire integrated agreement and understanding concerning the subject matter herein and supersedes and replaces any prior negotiations, promises, proposals (including Contractor’s Proposal), 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. 12.20 Section Headings The article headings and 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. Draft, March 13, 2012 -120- City of Hermosa Beach 12.21 References to Laws and Other Agreements All references in this Agreement to laws shall be understood to include such laws as they may be subsequently amended or re-codified, unless otherwise specifically provided. 12.22 Interpretation This Agreement, including the Exhibits attached hereto, shall be interpreted and construed reasonably and neither for nor against either Party, regardless of the degree to which either Party participated in its drafting. 12.23 Agreement This Agreement may not be modified or amended in any respect except by a writing signed by the Parties. 12.24 Severability If any non-material provision of this Agreement is for any reason deemed to be invalid and unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this Agreement which shall be enforced as if such invalid or unenforceable provision had not been contained herein. 12.25 Exhibits Each of Exhibits identified as Exhibit "1" through "7" is attached hereto and incorporated herein and made a part hereof by this reference. 12.26 Attorneys’ Fees If either Party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to recover its reasonable attorney’s fees and costs. Attorneys’ fees shall include attorney’s fees on any appeal, and in addition a Party entitled to attorney’s fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to Draft, March 13, 2012 -121- City of Hermosa Beach have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. Draft, March 13, 2012 -122- City of Hermosa Beach IN WITNESS WHEREOF, City and Contractor have executed this Agreement as of the day and year first above written. CITY OF HERMOSA BEACH ("City") DATED: _______________________________ DATED: _______________________________ CITY OF HERMOSA BEACH [Contractor] By: ____________________________________ By: ____________________________________ [Name] [Name] Mayor [Title] Approved as to form: By: ____________________________________ By: ____________________________________ [Name] [Name] City Attorney [Title] ATTEST: _______________________________________ [Name] City Clerk Draft, March 13, 2012 1 City of Hermosa Beach EXHIBIT 1 CONTRACTOR’S PROPOSAL Draft, March 13, 2012 City of Hermosa Beach EXHIBIT 2 INITIAL MAXIMUM RATES Following are the rates for January 1, 2013through December 31, 2013: Monthly Residential Cart Service Rates (Option 1: Cart System) Standard Service Includes one refuse cart and one or more recycling carts. Green waste carts are provided on a subscription basis. Cart Size: 35-gallon 64-gallon 96-gallon Standard Service – based upon refuse cart size $______ $______ $______ Additional Refuse Cart – above one $4.00 $6.00 $8.00 Additional Recycling Cart $0 $0 $0 Each Yard Waste Cart $______ $______ $______ Monthly Residential Service Rates (Option 2: Single Stream) Standard Service – Unlimited Co-Collection of Refuse and Recyclables: $_______ Green Waste Opt-In Program: No charge Other Cart Rates and Services (Charged in Addition to Monthly Cart Service Rates) Walk-Out Service – upon request $_____ Walk-Out Service – authorized disabled customers No charge Additional Special Overage Pickup for Automated Cart Customers (in excess of two pickups per year) $5 per pickup Additional Bulky Item pickups (in excess of two free pickups per dwelling unit per year) $40.50 per pickup Cart Exchange (in excess of free exchanges to be provided) $15 per request Returned Check (“NSF”) Fee (applicable to all customers) Credit Card Declined Fee (applicable to all customers) *Including all City fees. Draft, March 13, 2012 City of Hermosa Beach EXHIBIT 2 INITIAL MAXIMUM RATES (continued) Following are the rates for January 1, 2013 through December 31, 2013: Monthly Bin Rates* Container Size Pickups per week 1 2 3 4 5 6 Extra Empty** Refuse 32-gallon cart 64-gallon cart 96-gallon cart 1 yard bin $40.50 1.5 yard bin $40.50 2 yard bin $40.50 3 yard bin $52.07 4 yard bin $52.07 6 yard bin $52.07 8 yard bin $61.78 3 yard compactor Recycling 18-gallon cart 32-gallon cart 64-gallon cart 96-gallon cart 1 yard bin MAXIMUM RECYCLING RATES TO BE SET AT 50% OF COMPARABLE REFUSE RATES 2 yard bin 3 yard bin 4 yard bin Locking Bin Service $5.79 $5.79 $5.79 $5.79 $5.79 $5.79 Scout Truck Service $11.57 $11.57 $11.57 $11.57 $11.57 $11.57 Push-Out Service $11.57 $11.57 $11.57 $11.57 $11.57 $11.57 *Including all City fees. Draft, March 13, 2012 City of Hermosa Beach EXHIBIT 2 INITIAL MAXIMUM RATES (continued) Following are the rates for January 1, 2013 through December 31, 2013: Additional Service Charges Rate Per Service* Porter Service (total amount to be shared by affected customers per Section 4.1.14) $_______ per month Commercial Bulky Item Pickup: - 1 to 2 items $27.31/pickup - 3 to 5 items $54.61/pickup - 6 to 10 items $109.21/pickup - Each additional item on same pickup $27.31/add’l item Bin Return Trip/Dry Run Fee Bin Re-delivery Fee (if bins are pulled for non-payment) Bin Cleaning (over once per year) $40.00 3-yard Temporary Bin - Per dump (delivery, disposal and 7-day rental included) - Rental per day after 7 days without a dump Special Event Litter Boxes - Rate per box $_____ - Rate per liner $_____ Emergency Service Rates – one crew and one collection truck *Including all City fees. Draft, March 13, 2012 City of Hermosa Beach EXHIBIT 2 INITIAL MAXIMUM RATES (continued) Following are the rates for January 1, 2013 through December 31, 2013: Roll-off Box Charges Rate* Roll-off Box Service – Pull Plus Dump Standard Roll-off Box - Rate per pull (including delivery, and rental) - Standard roll-off box (any size) - Compactor roll-off box Per Ton Rate COD Roll-off Box Service Standard Roll-off Box - Rate per pull (including delivery, 7-day rental and disposal up to seven tons) Per day rental after 7 days without a pull Per Ton Rates - for each ton over seven tons/load Additional Roll-off Box Fees - Overweight charge (per ton over ten tons/load) - Dry Run/Redelivery/Return Trip/Relocation Fee *Including all City fees. Draft, March 13, 2012 City of Hermosa Beach EXHIBIT 2 INITIAL MAXIMUM RATES (continued) AB 939 Fees Included in the Above Rates 1234567 32-Gallon Cart 0.17$ 0.34$ 0.51$ 0.68$ 0.85$ 1.02$ 1.19$ 64-Gallon Cart 0.35$ 0.70$ 1.05$ 1.40$ 1.75$ 2.10$ 2.45$ 96-Gallon Cart 0.51$ 1.02$ 1.53$ 2.04$ 2.55$ 3.06$ 3.57$ 1 Cubic Yard 1.08$ 2.16$ 3.24$ 4.32$ 5.40$ 6.48$ 7.56$ 1.5 Cubic Yard 1.62$ 3.24$ 4.86$ 6.48$ 8.10$ 9.72$ 11.34$ 2 Cubic Yard 2.17$ 4.34$ 6.51$ 8.68$ 10.85$ 13.02$ 15.19$ 3 Cubic Yard 3.25$ 6.50$ 9.75$ 13.00$ 16.25$ 19.50$ 22.75$ 4 Cubic Yard 4.33$ 8.66$ 12.99$ 17.32$ 21.65$ 25.98$ 30.31$ 6 Cubic Yard 6.50$ 13.00$ 19.50$ 26.00$ 32.50$ 39.00$ 45.50$ 8 Cubic Yard 8.66$ 17.32$ 25.98$ 34.64$ 43.30$ 51.96$ 60.62$ Refuse Container Size Number of Collections per Week Container/Service Type Roll-Off Box Pulls Standard Roll-Off Box - 20, 30, 40 yard 10.00$ per pull Compactor Roll-Off Box - 20 yard 5.00$ per pull Compactor Roll-Off Box - 30 yard 7.50$ per pull Compactor Roll-Off Box - 40 yard 10.00$ per pull Temporary Bin 3 Cubic Yard 0.75$ per dump AB 939 Fee Draft, March 13, 2012 City of Hermosa Beach EXHIBIT 3A EXAMPLE RATE ADJUSTMENT FORMULA – CART & BIN Row Adjustment Factor Index 1 Labor (1) 109.7 112.2 2.3% 2 Fuel (2) 170.6 173.2 1.5% 3 Equipment (3) 125.1 129.1 3.2% 4 Disposal (4) 219.960 221.931 0.9% 5 All Other (5) 219.960 221.931 0.9% Row Adjustment Factor Index 6 Labor (1) 25.0% 2.3% 0.6% 7 Fuel (2) 8.0% 1.5% 0.1% 8 Equipment (3) 15.0% 3.2% 0.5% 9 Disposal (4) 25.0% 0.9% 0.2% 10 All Other (5) 27.0%0.9% 0.2% 11 Total 100.0% 1.6% Row Example Rate Categories 12 Res. service w/64-gal. refuse 12.00$ 1.6% 0.19$ 12.19$ 13 Res. service w/32-gal. refuse 8.00$ 1.6% 0.13$ 8.13$ 14 Extra 64-gal refuse cart 6.00$ 1.6% 0.10$ 6.10$ 15 Extra 32-gal refuse cart 4.00$ 1.6% 0.06$ 4.06$ 16 Alt.= Residential rate 14.00$ 1.6% 0.22$ 14.22$ 17 3 cu.yd. bin 1x week 183.00$ 1.6% 2.93$ 185.93$ 18 3 cu.yd. bin 2x week 230.00$ 1.6% 3.68$ 233.68$ 19 3 yd bin, extra pickup 52.00$ 1.6% 0.83$ 52.83$ 20 Commercial 96 gal. cart 22.00$ 1.6% 0.35$ 22.35$ Row Adjustment Factor Index 21 Labor (1) 25.0% 2.3% 0.6% 25.6% 25.2% 22 Fuel (2) 8.0% 1.5% 0.1% 8.1% 8.0% 23 Equipment (3) 15.0% 3.2% 0.5% 15.5% 15.3% 24 Disposal (4) 25.0% 0.9% 0.2% 25.2% 24.8% 25 All Other (5) 27.0%0.9% 0.2% 27.2%26.7% 26 Total 100.0% 101.6% 100.0% (4) Consumer Price Index for All Urban Consumers, less food and energy, U.S. city average - average annual change* or TBD. (5) Consumer Price Index for All Urban Consumers, less food and energy, U.S. city average - average annual change.* (7) Example rates listed. Adjustment applies to all applicable rate categories. * See Exhibit 3C. (1) Employment Cost Index CIU20100005200000I, Total compensation, Private industry, Index number, Transportation and material moving - average annual change.* (2) Producer Price Index, WPU 0531 not seasonally adjusted, Fuels and related products and power, natural gas - average annual change.* (6) First year based on Section 6.4. After the first adjustment, this coumn comes from Column O of the previous year's rate adjustment worksheet. Adjusted Rate (Column G + Column I) Rate Increase or Decrease (Column G x Column H) Current Customer Rate (7) Total Weighted Percentage Change (from Column F) Step Four: Re-weight cost components Cost Component (Column D) Percent Change in Index (Column E) Adjusted Cost Component Weightings (Column K + Column M) N GJ Step Three: Apply percentage change to rates Change in Cost Component Weightings (Column K x Column L) K OM Cost Components Reweighted to Equal 100% (Column N Row divided by Column N Total) New Index Value Percent Change In Index ((Column B/ Column A) -1) EF I Total Weighted Change (Columns D x E) Cost Factor Category Weighted as a % of Component Total (6) L (3) Producer Price Index, PCU336120336120, Heavy duty truck manufacturing - average annual change.* D Step Two: Determine components Old Index Value Percent Change In Index (from Column C) H Draft, March 13, 2012 City of Hermosa Beach EXHIBIT 3B EXAMPLE RATE ADJUSTMENT FORMULA – ROLL-OFF BOX Row Adjustment Factor Index 1 2 Labor (1) 109.7 112.2 2.3% 3 Fuel (2) 170.6 173.2 1.5% 4 Equipment (3) 125.1 129.1 3.2% 5 All Other (4) 219.960 221.931 0.9% 6 Refuse/Ton (5) 219.960 221.931 0.9% Row Adjustment Factor Index 7 8 Labor (1) 48.4% 2.3% 1.1% 9 Fuel (2) 6.9% 1.5% 0.1% 10 Equipment (3) 20.0% 3.2% 0.6% 11 All Other (4) 21.1%0.9% 0.2% 12 96.4% n/a 2.0% 13 Refuse/Ton (5) 100.0% 0.9% 0.9% Row 14 168.00$ 2.0%3.36$ 171.36$ 15 337.00$ 2.0%6.74$ 343.74$ 16 Refuse/Ton (5) 36.00$ 0.9%0.32$ 36.32$ Row Adjustment Factor Index 17 Labor (1) 48.4% 2.3% 1.1% 49.5% 50.3% 18 Fuel (2) 6.9% 1.5% 0.1% 7.0% 7.1% 19 Equipment (3) 20.0% 3.2% 0.6% 20.6% 20.9% 20 All Other (4) 21.1%0.9% 0.2% 21.3%21.7% 21 Total 96.4%98.4% 100.0% (4) Consumer Price Index for All Urban Consumers, less food and energy, U.S. city average - average annual change.* (5) TBD. Service Component Total A Service Component (Pull Rate) C Old Index Value B E Service Component (Pull Rate) Cost Factor Category Weighted as a % of Component Total (6) FD Total Weighted Change (Columns D x E)Percent Change In Index (from Step One, Column C) LMN Step One: Calculate percentage change in indices New Index Value Percent Change In Index ((Column B/ Column A) -1) Step Two: Determine components Step Four: Re-weight service component cost components O Current Customer Rate Total Weighted Percentage Change (from Column F) Rate Increase or Decrease (Column H x Column I) Compactor Rolloff Box Pull Rate K Rate Category Step Three: Apply percentage change to rates GH Standard Rolloff Box Pull Rate Adjusted Rate (Column H + Column J) JI * See Exhibit 3C. Change in Cost Component Weightings (Column K x Column L) Adjusted Cost Component Weightings (Column K + Column M) Cost Components Reweighted to Equal 100% (Column N Row divided by Column N Total) Cost Component (Column D) (6) First year based on Section 6.4. After the first adjustment, this coumn comes from Column O of the previous year's rate adjustment worksheet. Percent Change in Index (Column E) (1) Employment Cost Index CIU20100005200000I, Total compensation, Private industry, Index number, Transportation and material moving - average annual change.* (2) Producer Price Index, WPU 0531 not seasonally adjusted, Fuels and related products and power, natural gas - average annual change.* (3) Producer Price Index, PCU336120336120, Heavy duty truck manufacturing - average annual change.* Draft, March 13, 2012 City of Hermosa Beach EXHIBIT 3C EXAMPLE RATE ADJUSTMENT FORMULA - CALCULATION FOR AVERAGE ANNUAL CHANGE IN PUBLISHED PRICE INDICES Rate adjustment indices for labor, fuel, equipment and “all other” are calculated using the “average annual change” as demonstrated in the example below, measured for the twelve months ended the March before each rate adjustment, as compared to the twelve months ended the prior March. The Bureau of Labor Statistics publishes these monthly and quarterly indices. The following example is for the Consumer Price Index for All Urban Consumers all items less food and energy index - U.S. City average that is used to adjust the “all other” cost components. If a rate adjustment based on this CPI index were to be implemented as of January 1, 2011, the twelve-month average annual index for the period ended March 2010 of 221.931 would have been the “New Index Value” to be used in Column B of the example rate adjustment formulas in Exhibits 3A and 3B, and the twelve-month average annual index for the period ended March 2019 219.960 would have been the “Old Index Value” in Column A. This would have resulted in a 0.9% increase to the “all other” cost components in Column C. Consumer Price Index – All Urban Consumers, U.S. City Average All items less food and energy, CUUR0000SAOL1E Year Jan Feb March April May June July August Sept Oct Nov Dec Average 2009 219.143 219.128 219.283 219.35 219.596 220.137 220.731 220.384 220.025 2010 220.086 220.602 221.059 219.960 2010 221.166 221.193 221.265 221.258 221.551 221.907 222.079 222.077 221.795 2011 222.177 223.011 223.69 221.931 Average Annual Change: 0.9% "! "! " ! "! " ! " ! " ! " ! " ! " ! " !" ! " !! " " ! " ! ! " ! " ! " ! ! ! ! ! ! " ! ! ! ! " ! !"! " ! ! !! " ! " ! ! !! " ! " ! ! ! " ! ! ! ! ! " !"! ! " " " " ! " ! ! " ! " ! " ! ! !" !" " ! " " ! !" " ! ! " " ! !"!"! " ! "!! ! ! ! ! !! ! ! ! ! ! ! ! ! "! ! ! ! !! "" !! ! ! ! !! "" !! ! ! !! "" ! ! " ! ! ! " ! " " ! ! ! ! !" "! ! ! ! ! ! ! !! "" ! " ! " ! " ! " ! " !" " ! ! " !! "" " ! " ! ! " !" ! ! ! ! " ! !""! "! "! !" "! " ! "! !"! " ! " ! " !" ! !"!" !" !" !" !" !""! "!"!!" "! !" "! !" " ! " ! !" ! ! ! ! ! !! "" ! " ! " ! " !" "!" ! " ! ! ! ! Moondust Park Edith Rodaway Park Ardmore Park Lot A Lot B Parking Structure12 Trash (Clean Street)2 Recycle Noble Park 4 Trash (True Green) 4 Recycle Jarvis Memorial Sea View Parkette Clark Stadium15 Trash (True Green) 8 Recycle South Park16 Trash (True Green)6 Recycle Valley Park34 Trash (True Green)23 Recycle Palm DrValley DrThe StrandManhattan AveArdmore AveBayview DrProspect AvePacific Coast HwyMonte rey B lvd Beach Dr7th St 8th Pl 5th St 25th St 10th St 6th St Pier Ave 2nd St 14th StHermosa Ave 30th St Harpe r A ve 31th St 32th Pl 16th St Gould Ave 29th St Sunset Dr28th St Ocean Dr31th Pl 30th Pl Alley 33rd St 17th St 33th Pl 29th Ct 1st St 28th Ct 3rd St 7th PlLoma D r Aviation Blvd8th St 24th Pl 9th St 27th St 1st Pl 4th St Herondo StOzone C t Longfellow Ave 24th St Artesia Blvd 21st St 13th St 26th St 15th St 19th St Bonnie Brae StOwosso Ave34th St Rhodes StHillcrest Dr11th St Hollowell AveIng les ide D r 20th St Bard StGentry StMyr t le Ave Oak St 20th Pl Gou l d T e r Reynolds LnPower St27th Ct 1st CtPark Ave34th Pl 22nd St Hil l S t Tennyson Pl17th Ct 18th St 18th Ct 16th Ct Porter Ln 15th PlAva Ave11th Pl 19th Ct 14th Ct Circle Dr13th Ct Lyndon St Cypress Ave9th Ct Corona StValley Park Ave11th Ct 8th Ct 15th Ct 12th Ct 20th Ct Hopkins StPier Plaza 10th Ct 7th Ct Gol d e n A v e 35th St Silve r S t 6th Ct Culper CtPine StSilve rs t rand AveHigh land AveMeyer CtEl Oeste Dr21st Ct 5th Ct Springfield Ave4th CtCrest D r 23rd St Campana StOcean View Ave3rd Ct Barney Ct35th Pl Amby PlM o r n i n g s i d e D r Aubrey Park CtMarlita Pl Greenwich VillageRaymond AveBraeholm Pl Borden AveJoy St Circle Ct La Carlita PlMontgomery DrMira StVis ta D r Loma Walk Gravley CtCochise Ave 22nd Ct 24th St 21st St 3rd St 30th St 21st St 3rd StCypress Ave4th St 11th St 5th St Power St20th St Harper Ave30th Pl 1st St 13th St 4th St 7th St 24th St 35th St 25th St 26th St 9th St 19th St 15th St 1st St 24th St 19th St 3rd St 34th St 10th St 2nd St Hillcrest DrBard St6th St 8th St Golden Ave 20th St 1st PlMorn ings ide D r 15th St 11th St 11th Pl 4th St Loma Dr16th St 34th Pl Alley 7th St Lyndon St 18th St Alley18th St Ardmo re Ave Alley 7th St 17th St 14th St 10th StBeach Dr9th St 4th St Oak St H e rm o s a A v e Harpe r Ave 1st StLoma Dr24th St Longfellow Ave 11th St A l l e y Alley21st St1st St 24th Pl 19th St 6th St 11th St 11th Pl City of Hermosa Beach Trash Cans and Recycle Bins Locations "Recycle - managed by Consolidated (Count: 164) !Trash - managed by Consolidated (Count: 89) !Trash - managed by Clean Street (Count: 75) !Trash - managed by True Green (Count: 112) EXHIBIT 4 March 13, 2012 City of Hermosa Beach Draft, March 13, 2012 5 - 1 City of Hermosa Beach EXHIBIT 5 CORPORATE GUARANTY THIS GUARANTY (the “Guaranty) is given as of the ____ day of ____, 2012. THIS GUARANTY is made with reference to the following facts and circumstances: A. ____________________________, hereinafter (“Owner”) is a corporation organized under the laws of the State of California, all of the issued and outstanding stock of which is owned by ______________________, (Guarantor). B. Owner and the City of Hermosa Beach (“the City”) have negotiated an Agreement for Integrated Solid Waste Management Services dated as of _______________, (hereinafter “Agreement”). A copy of this Agreement is attached hereto. C. It is a requirement of the Agreement, and a condition to the City entering into the Agreement, that Guarantor guaranty Owner’s performance of the Agreement. D. Guarantor is providing this Guaranty to induce the City to enter into the Agreement. NOW, THEREFORE, in consideration of the foregoing, Guarantor agrees as follows: 1. Guaranty of the Agreement. Guarantor hereby irrevocably and unconditionally guarantees to the City the complete and timely performance, satisfaction and observation by Owner of each and every term and condition of the Agreement which Owner is required to perform, satisfy or observe. In the event that Owner fails to perform, satisfy or observe any of the terms and conditions of the Agreement, Guarantor will promptly and fully perform, or cause to perform them in the place of the Owner or cause them to be performed, satisfied or observed. Guarantor hereby guarantees payment to the City of any damages, costs or expenses which might become recoverable by the City from Owner due to its breach of the Agreement. 2. Guarantor’s Obligations Are Absolute. The obligations of the Guarantor hereunder are direct, immediate, absolute, continuing, unconditional and unlimited, and with respect to any payment obligation of Owner under the Agreement, shall constitute a guarantee of payment and not of collection, and are not conditional upon the genuineness, validity, regularity or enforceability of the Agreement. In any action Draft, March 13, 2012 5 - 2 City of Hermosa Beach brought against the Guarantor to enforce, or for damages for breach of, its obligations hereunder, the Guarantor shall be entitled to all defenses, if any, that would be available to the Owner in an action to enforce, or for damages for breach of, the Agreement (other than discharge of, or stay of proceedings to enforce, obligations under the Agreement under bankruptcy law). 3. Waivers. Except as provided herein the Guarantor shall have no right to terminate this Guaranty or to be released, relieved, exonerated or discharged from its obligations under it for any reason whatsoever, including, without limitation: (1) the insolvency, bankruptcy, reorganization or cessation of existence of the Owner; (2) the actual or purported rejection by a trustee in bankruptcy of the Agreement, or any limitation on any claim in bankruptcy resulting from the actual or purported termination of the Agreement; (3) any waiver with respect to any of the obligations of the Agreement guaranteed hereunder or the impairment or suspension of any of the City’s rights or remedies against the Owner; or (4) any merger or consolidation of the Owner with any other corporation, or any sale, lease or transfer of any or all the assets of the Owner. Without limiting the generality of the foregoing, Guarantor hereby waives the rights and benefits under California Civil Code Section 2819. The Guarantor hereby waives any and all benefits and defenses under California Civil Code Section 2846, 2849, and 2850, including without limitation, the right to require the City to (a) proceed against Owner, (b) proceed against or exhaust any security or collateral the City may hold now or hereafter hold, or (c) pursue any other right or remedy for Guarantor’s benefit, and agrees that the City may proceed against Guarantor for the obligations guaranteed herein without taking any action against Owner or any other guarantor or pledgor and without proceeding against or exhausting any security or collateral the City may hold now or hereafter hold. City may unqualifiedly exercise in its sole discretion any or all rights and remedies available to it against Owner or any other guarantor or pledgor without impairing the City’s rights and remedies in enforcing this Guaranty. The Guarantor hereby expressly waives, diligence, presentment, demand for payment or performance, protest and all notices whatsoever, including, but not limited to, notices of non-payment or non-performance, notices of protest, notices of any breach or default, and notices of acceptance of this Guaranty. If all or any portion of the obligations guaranteed hereunder are paid or performed, Guarantor’s obligations hereunder shall continue and remain in full force and effect in the event that all or any part of such Draft, March 13, 2012 5 - 3 City of Hermosa Beach payment or performance is avoided or recovered directly or indirectly from the City as a preference, fraudulent transfer or otherwise, irrespective of (a) any notice of revocation given by Guarantor or Owner prior to such avoidance or recovery, and (b) payment in full of any obligations then outstanding. 4. Term. This Guaranty is not limited to any period of time, but shall continue in full force and effect until all of the terms and conditions of the Agreement have been fully performed or otherwise discharged and Guarantor shall remain fully responsible under this Guaranty without regard to the acceptance by the City of any performance bond or other collateral to assure the performance of Owner’s obligations under the Agreement. Guarantor shall not be released of its obligations hereunder so long as there is any claim by the City against Owner arising out of the Agreement based on Owner’s failure to perform which has not been settled or discharged. 5. No Waivers. No delay on the part of the City in exercising any rights under this Guaranty or failure to exercise such rights shall operate as a waiver of such rights. No notice to or demand on Guarantor shall be a waiver of any obligation of Guarantor or right of the City to take other or further action without notice or demand. No modification or waiver of any of the provisions of this Guaranty shall be effective unless it is in writing and signed by the City and by Guarantor, nor shall any waiver be effective except in the specific instance or matter for which it is given. 6. Attorney’s Fees. In addition to the amounts guaranteed under this Guaranty, Guarantor agrees in the event of Guaranty’s breach of its obligations including to pay reasonable attorney’s fees and all other reasonable costs and expenses incurred by the City in enforcing this Guaranty, or in any action or proceeding arising out of or relating to this Guaranty, including any action instituted to determine the respective rights and obligations of the parties hereunder. 7. Governing Law: Jurisdiction. This Guaranty is and shall be deemed to be a contract entered into in and pursuant to the laws of the State of California and shall be governed and construed in accordance with the laws of California without regard to its conflicts of laws, rules for all purposes including, but not limited to, matters of construction, validity and performance. Guarantor agrees that any action brought by the City to enforce this Guaranty may be brought in any court of the State of California and Guarantor consents to personal jurisdiction over it by such courts. Guarantor appoints the following Person as its agent for service of process in California: Draft, March 13, 2012 5 - 4 City of Hermosa Beach ___________ ___________ ___________ ___________ With a copy by certified mail to: ___________ ___________ ___________ ___________ 8. Severability. If any portion of this Guaranty is held to be invalid or unenforceable, such invalidity will have no effect upon the remaining portions of this Guaranty, which shall be severable and continue in full force and effect. 9. Binding On Successors. This Guaranty shall inure to the benefit of the City and its successors and shall be binding upon Guarantor and its successors, including transferee(s) of substantially all of its assets and its shareholder(s) in the event of its dissolution or insolvency. 10. Authority. Guarantor represents and warrants that it has the corporate power and authority to give this Guaranty, that its execution of this Guaranty has been authorized by all necessary action under its Article of Incorporation and By-Laws, and that the Person signing this Guaranty on its behalf has the authority to do so. 11. Notices. Notice shall be given in writing, deposited in the U.S. mail, registered or certified, first class postage prepaid, addressed as follows: To the City: City Manager City of Hermosa Beach 1315 Valley Drive Hermosa Beach, CA 90254-3885 with a copy to the City Counsel at the same address. To the Guarantor: ___________ ___________ ___________ ___________ Draft, March 13, 2012 5 - 5 City of Hermosa Beach ___________ ___________ ___________ ___________ By: ______________________ (title) By: ______________________ (title) Draft, March 13, 2012 City of Hermosa Beach EXHIBIT 6 Contractor's Faithful Performance Bond KNOW ALL MEN BY THESE PRESENTS: That , a California , as PRINCIPAL, and , a Corporation organized and doing business by virtue of the laws of the State of California, and duly licensed for the purpose of making, guaranteeing, or becoming sole surety upon bonds or undertakings required or authorized by the laws of the State of California, as SURETY, are held and firmly bound to City, hereinafter called OBLIGEE, in the penal sum of five hundred thousand dollars ($500,000) lawful money of the United States, for the payment of which, well and truly to be made, we and each of us hereby bind ourselves, and our and each of our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents. NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH THAT: WHEREAS, the above bounden PRINCIPAL has entered into a contract, entitled "INTEGRATED SOLID WASTE MANAGEMENT SERVICES" with City, to do and perform the following work, to wit: Collect, Process and dispose of Solid Waste generated within City, in accordance with the contract. NOW, THEREFORE, if the above bounden PRINCIPAL shall well and truly perform, or cause to be performed each and all of the requirements and obligations of said contract to be performed by said PRINCIPAL, as in said contract set forth, then this BOND shall be null and void; otherwise it will remain in full force and effect. And the said Surety, for value received hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the contract or to the work to be performed there under or the specifications accompanying the same shall in any wise affect its obligations on this BOND, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the contract or to the work or to the specifications. Draft, March 13, 2012 City of Hermosa Beach In the event suit is brought by OBLIGEE to enforce the provisions of this bond, said Surety will pay to OBLIGEE a reasonable attorney’s fee, plus costs of suit, in an amount to be fixed by the court. IN WITNESS WHEREOF, said PRINCIPAL and said SURETY have caused these presents to be duly signed and sealed this day of , 2012. a California Corporation SURETY By: By: (PRINCIPAL) (ATTORNEY IN FACT) (SEAL) (SEAL) Draft, March 13, 2012 City of Hermosa Beach EXHIBIT 7 NOTARY CERTIFICATION STATE OF CALIFORNIA) COUNTY OF ) ss: On , , before me, the undersigned, a Notary Public in and for the State of California, personally appeared , known to me to be the of Contractor that executed the within instrument on behalf of the Contractor therein named, and acknowledged to me that such Contractor executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal in the County of this day of , . Notary Public My Commission Expires: