RESOLUTION NO. 2013-31

A RESOLUTION OF THE COUNCIL OF THE CIry OFFRESNO, CALIFORNIA CALLING A SPECIAL ELECTIONON TUESDAY, JUNE 4,2013, AND SUBMITTING TO CITYVOTERS A BALLOT MEASURE RELATING TOORDINANCE NO. 2012-26 REGARDING GRANT OF ANEXCLUSIVE FRANCHISE TO MID VALLEY DISPOSAL FORTHE COLLECTION OF RESIDENTIAL SOLID WASTE,RECYCLABLE MATERIALS, AND ORGANIC MATERIALSWITHIN THE CITY OF FRESNO

WHEREAS, on December 20,2012, the City Council of the City of Fresno adoptedOrdinance 2012-26 relating to grant of an exclusive franchise to Mid Valley Disposal forthe collection of residential solid waste, recyclable materials, and organic materials withinthe City; and

WHEREAS, on January 18, 2013, the City Clerk (Elections Official) received aReferendum Petition opposing the adoption of Ordinance No. 2012-26; and

WHEREAS, after a prima facie review by the City Clerk, the Referendum Petitionwas deemed filed on January 22,2013; and

WHEREAS, the Fresno County Clerk/Registrar of Voters examined the petitionsignatures against the records of registration and submitted the findings of the verificationprocess to the City Clerk; and

WHEREAS, the City Clerk has issued a Certificate of Sufficiency for theReferendum Petition as required under Elections Code $9114; and

WHEREAS, the Council has determined to submit the ordinance to the City voters.

NOW, THEREFORE, BE lT RESOLVED by the Council of the City of Fresno as follows:

SECTION 1. There is called and ordered to be held in the City of Fresno,California, on Tuesday, June 4,2013 a Special Election for the purpose of submitting aballot measure to the City voters.

Date Adopted: 2128/13

Date Approved: 3/ll20l3EffectiveDate: 3lll20l3

Resolution calling a Special Election forJune 4,2013

ResolutionNo. 2013-31

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SECTION 2. The question to be submitted to the voters with respect to the ballotmeasure shall be printed on the election ballot with the title and in the form set forth asfollows:

APPROVAL OF ORDINANCE NO. 2012-26 GRANTINGEXCLUSIVE FRANCHISE TO MID VALLEY DISPOSAL.Shall Ordinance 2012-26 which grants to Mid Valley Disposal I YESan exclusive franchise for the collection of residential solid

I

waste, recyclable materials, and organic materials within the I

City of Fresno be adopted? I NO

SECTION 3. The following constitutes the synopsis of the measurevoted on for purposes of meeting the publication requirements of ElectionSection 12111:

MEASURE TO BE VOTED ONAPPROVAL OF ORDINANCE NO. 2012.26 GRANTINGEXCLUSIVE FRANCHISE TO MID VALLEY DISPOSAL.

Currently, collection of residential solid waste, recyclablematerials, and organic materials and related billing servicesare handled by the City of Fresno. As authorized by the CityCharter, this ordinance grants to Mid Valley Disposal anexclusive franchise to provide the services currently providedby the City. The manner of solid waste collection, includingthe types of containers used, the day of collection, and theannual Operation Clean Up service will remain the same.Residents will receive a monthly rate reduction of 17.6%locked-in for two years, then capped thereafter. DisplacedCity employees will be hired by Mid Valley Disposal for atleast one year. The City will receive a $1.5 million signing feeand ongoing franchise fees of $2.5 million per year. The Citymay use the fees for public safety and other generalgovernment services.

SECTION 4. The full text of the ordinance submitted to the voters isattached as Exhibit A. The full text of the measure is not required to be printed inthe Sample Ballot and Voters Pamphlet. However, the full text of the measureshall be made available at the Office of the Fresno County Clerk/Registrar ofVoters and the Office of the Fresno City Clerk.

Resolution calling a Special Electionfor June 4,2013

Resolution No. 2013-31

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SECTION 5. The City of Fresno requests that the Fresno CountyClerk/Registrar of Voters conduct the election and canvass the returns, and theCity consents to reimburse the Registrar of Voters for all costs incurred by saidservices.

SECTION 6. ln all particulars not recited in this resolution, the election shallbe held and conducted as provided by law for holding municipal elections.

SECTION 7. Arguments in favor or against the proposed measure arepermissible and shall be filed with the Fresno County Clerk/Registrar inaccordance with Elections Code Section 9282. Councilmembers voting in themajority for this resolution and the Mayor are authorized, but not required, to filearguments in favor of the proposed measure. They are also authorized to provideinput to the Fresno County Clerk/Registrar in determining a letter designation forthis measure.

SECTION 8. Passage of this measure requires 50% plus 1 votes.

SECTION 9. The Fresno County Clerk/Registrar of Voters shall give theappropriate notices for the election and shall conduct the election pursuant toappropriate provisions of state law.

SECTION 10. The City Attorney shall prepare an impartial analysis ofthe measure in accordance with Elections Code Section 9280 and file it with theFresno County Clerk/Registrar of Voters.

SECTION 11. The City Clerk shall file a certified copy of this resolution withthe Fresno County Clerk/Registrar of Voters on March 1, 2013, to ensure therequisite timeframes for holding the special election as required by applicable law.

Resolution calling a Special ElectionforJune 4,2013

Resolution No. 2013-31

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STATE OF CALTFORNTA )COUNTY OF FRESNO ) ss.crTY oF FRESNO )

l, WONNE SPENCE, City Clerk of the City of Fresno, certify that the foregoingresolution was adopted by the Council of the City of Fresno, at a regular meeting held onthe 28th day of February, 2013.

AYES : Baines, Brand, Brandau, Caprioglio, OlivierNOES : Quintero, XiongABSENT :

ABSTAIN :

Mayor Approval: March 1 ,2013Mayor Approval/No Retu rn : 2013Mayor Veto: ,2013Council Override Vote: 2013

WONNE SPENCE, CMCCity Clerk

APPROVED AS TO FORM:NEY'S OFFICE

Resolution calling a Special ElectionforJune 4,2013

ResolutionNo.20l3-31

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Exhibit A

BILL NO. B-25

ORDINANCE NO. 2012-26

AN ORDINANCE OF THE CITY OT TNESNO, CALIFORNIA,WHICH GRANTS TO MID VALLEY DISPOSAL (MIDVALLEY), , AN EXCLUSIVE FRANCHISE FOR THECOLLECTION OF RESIDENTIAL . SOLID WASTE,RECYCLABLE MATERIALS, AND ORGANIC MATERIALSWITHIN THE CITY OF FRESNO

THE COLTNCIL OF THE CITY OF FRESNO (THE "CITy',) DOES ORDAIN AS FOLLOWS:

SECTION l. This Ordinance effectuates the terms and conditions set forth in the form ofthe Franchise Documents executed by the City and Mid Valley Disposal (Mid Valley).

SECTION 2. Whenever in this ordinance the words or phrases hereinafter in this section

defined are used, they'shall have the respective meanings assigned.to them in the following

definitions; and words or phrases not hereinafter in this section defined, but which are defined in

any Franchise Document, as herein defined, shall have the same meanings herein, as so defined

in such Franchise Documents (unless, in the given instance, the context wherein they are used

shall olearly import a different rneaning):

(a) "Contractor" shall mean Mid Valley.

:'""îiT"'o3ä:î",iiir'ln".i:ili1,'f åiî':iiii',:rthero'owing:(2) Chapter 6, Article 2, of the Fresno Municipal Code.

(3) The Franchise Agreement for Residential

Solid Waste, Recyclable Materials, and Organic Materials.

(4) The written acceptance of the granting of an Exclusive

Franchise to Contractor.

(5) Resolution No. 2012-216, Resolution of Intention to Grant

a Franchis'e to Mid Valley.

(6) This Ordinance.

Page I of 3 Ordinance granting Mid valley DisposalAn Exclusive Franchise for the Coìlectionof Residential Solid Waste

Date Adopred: l2l20l2ol2Date Approve d: 12[20 12012Effective Date: I f2012013

Ordinance No. 2012-26

(7) Any and all documents which are referred to, defined, or

described in any of the foregoing as "Franchise Documents."

. (c) "Franchise Fee" shall mean the fee paid by the Contractor to the City for the

privilege to hold the exclusive rights granted by the Franchise Agreement and as defined

within Provision l0.l of the Exclusive Franchise Agreement.

SECTION 3. Exclusive Franchise authorizing and permitting the Contractor to do all

things described by the Franchise Documents is hereby granted to Mid valley.

SECTION 4. The term of the Exclusive Franchise Agreement shall be expressly stated in

Exhibit "Ai'which is hereby incorporated by reference.

SECTION 5. Contractor shall pay to the City all franchise fees and other fees that are due

and payable pursuant to the Franchise Agreement.

SECTION 6. EFFECTIVE DATE. This ordinance shall become effective and in fullforce and effect at l2:01 a.m., on the thirty-first day after its final passage.

lil

u/Ht

Ordinance granting Mid Valley DisposalAn Exclusive Franchise for the Collectionof Residential Solid Waste

Ordinance No. 2012-26

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***t+¡Ët*+*****

STATE OF CALIFORNIACOUNTY OF FRESNOCITY OF FRESNO

I, Y-VONNE SPENCE, City Clerk of the City of Fresno, certiff that the foregoingordinance was adopted by the Council of the City of Fresno, at a regular meeting held onthe 20th day of December,20L2.

)

) ss.

)

AYESNOESABSENTABSTAIN

Borgeas, Brand, Westerhurd, OlivierBaines, Quintero, XiongNoneNone

Mayor Approval:Mayor Approval/1.{o Retum:

201220t2

Mayor Veto: N/A .2012Council Ovenide Vote: N/A ,2012

WONNE SPENCE, CMC

APPROVED AS TO FORM:CITY ATTOBNEY'S OFFICE

Rev. I l/29l12

Ordinance granting Mid Valley DisposalAn Exclusíve Franphise for the Collectionof Resìdential Solid Waste

Ordinance No. 2012-26

Page 3 of3

December 20, 2012

MAYOR ASHLEY SWEARENGINMayor Approval:

Mayor Veto:Override Request:

FROM: WONNE SPENCE, CMUCity Clerk

SUBJECT: TRANSMITTAL OF COUNCIL ACTION FOR APPROVAL OR VETO

At the Council meeting of 12120112, Council adopted the attached Ordinance No. 2012-26entitled to Grant Mid Valley Disposal an Exclusive Franchise for the Gollection ofResidential Solid Waste Recyclable Materials, and Organic JVlaterials within the City ofFresno ltem No, 5:00 PM, by the following vote:

Ayes ;

Noes :

Absent :

Abstain :

Borgeas, Brand, Westerlund, OlivierBaines, Xiong, QuinteroNoneNone

Please indicate either your formal approval or veto by completing the following sect¡ons andexecuting and dating your action. Please file the completed memo with the Clerk's office onor before January 2,2013, ln computing the ten day period required by Charter, the first dayhas been excluded and the tenth day has been included unless the 1Oth day is a Saturday,Sunday, or holiday, in which case it has also been excluded. Failure to file this memo withthe Clerk's office within the required time limit shall constitute approval of the ordinance,resolution or action, and it shall take effect without the Mayor's signed approval.

Thank you.

/6-rÀù RETuRN:$----lVETOED for the following reasons: (Written objections are required by Charter; attachadditional sheets if necessary.)

Date: Iz-lzol, >

Date:AyesNoesAbsentAbstain

COUNCIL OVERRIDE ACTION:

X'RÄNCHISE AGREEMENT

BET\ryEEN

THE CITY OF F'RESNO

AND

MID VALLEY DISPOSAL

FOR

RESIDENTIÄL SOLII) \ryASTE,RECYCLABLE MATERIALS, ANDORGAI\IC IVIATERIALS SERVICES

DECEMBER 13,2012

Table of Contents

RECITÁ,LS ..............1ARTICLE 1. DEFINITIONS.........ARTICLE 2. REPRESENTATIONS AND WARRANTIES OF THE CONTRACTOR..II

2.1 CORPORATE STATUS.... ......................1I2.2 CORPORATE AUTHORIZATTON... ............,.......,...1 I2.3 AGREEMENT WILL NOT CAUSE-BREACH ........I I2.4 NO LITIGATÍON......... .,.,,,..122.5 NO ADVERSE JUDICTAL DECISIONS................ ......................122.6 NO LEGAL PROHTB|TION,....,....... .........................122.t CoNTRACTOR'S STATEMENTS.............. .............t22.8 CONTRACTOR'S rNVESTIGATION......... .........,...132.9 ABILITY TO P8RFORM...............,.....'........... .......,...l32.10 voLLJNTARy USE OF DESTCNATED FACILITTES ...........................,....,.,.l3

ARTICLE 3. TERM OT'AGREEMENT ........,............13. 3.I EFFECTIVE DATE AND COMMENCEMENT DATE.. .............. I3

3.2 CONDITIONS TOEFFECTIVENESS OF AGREEMENT.......,....................,.I33.3 TERM .......,........143.4 OPTION TO EXTEND TERM ....,...,.,....14

ARTICLE 4. SCOPE OF'AGREEMENT l44.1 SCOPE OF ACREEMENT .....................144.2 LIMITATTONS TO SCOPE...... ..............t54.3 SUBCONTRACTING .......,,,174.4 oWNERSHIP OF MATERIALS ................ ............... t 74,5 CITY.DIRECTED CHANGES TO SCOPE .............,I84.6 CITY'S RIGHT TO PERFORM SERVTCES AND POSSESS EQUIPMENT.20

. 4.7 TRANSITTON TO NEXT CONTRACTOR AT END OF AGREEMENT ,..,...224.8 CITY FREE TO NEGOTIATE WITH THIRD PARTIES... ...,....,.22

ARTICLE 5. COLLECTTON SERVICES ...................225.1 sol-tD wAsTE CoLLECTION............. ...................225.2 RECYCLABLEMATERIALS COLLECTION ...,....235.3 ORGANIC MATERIALS COLLECTION.........,.. ._......................245.4 SCHEDULEDNEIGHBORHOOD CLEAN-UP .......245.5 SERVICE ASSISTANCE PROGRAM............ ..........255.6 USED MOTOR OIL AND FILTER COLLECTION.............. ..,,...265.7 ON.CALL ELECTRONIC WASTE COLLECTION.......,,.... ....,.,265.8 ON-CALL TEXTILE RECYCLING COLLECTTON.......... ,,,...,,..26

ARTICLE 6. PROCESSTNGAND DISPOSAL........ .......i..............276.1 RECYCLABLE MATERTALS PROCESSrNG..................;.......... ...................276.2 oRGANIC MATERTALS pROCESSfNc.....,...... .........................296.3 SOLID WASTE DISPOSAL ...........,.,.....31

ARTICLE 7. OTHER SERVICES ....-......327.1 PUBLIC EDUCATION ........32

',? ålÏ$äfuR ËriTiöE;äöäRAM::::: ::: : :::: :: : ::: ::::: ::::: 33

7.4 PROVISION OF EMERGENCY SERVICES ............36ARTICLE 8. STANDARDS AND REQUIREMENTS FOR SERVICES, EQUIPMENT,

AND PERSON¡TEL.....8.I COLLECTION HOURS AND SCHEDULES ............378.2 COLLECTTON STANDARDS ................378.3 VEHICLE REQUIREMENTS......:.. ,.......398.4 CARTREQUTREMENTS ........:...............428.5 P8RSONNEL.......,........ .......438.6 HAZARDOUS WASTE INSPECTION AND HANDLING..............,..............458.7 NON-DISCRTMTNAT|ON .......................4ó8.8 COMMLINICATION AND COOPERATION WITH CITY.......... ..,,.....,,,,......478.9 YEAR 4 CONTRACTOR PERIORMANCE REVTEV/ ...................................478.10 YEAR 7 FRANCHISE SYSTEM REVIEV/ ................50

ÄRTICLE 9. RE.CORD KEEPING AND REPORTING...... .........5I9.1 GENERAL. ..........'.................519.2 RECORDS .......s29.3 GENERALREPORTING REQUIREMENTS ............549.4 MONTHLY REPORTS. ......549.5 QUARTERLY REPORTS................. .......569.6 ANNUALREPORTS ..........579.7 EVENT-SPECIFIC REPORTING................. ..................................s9

ARTICLE IO. FRANCHISE FEES AND OTHER FEES.....10.1 FRANCHTSE FEE .,.,,,...........59t0.2 oTHER FEES AND PAYMENTS................. .-...............................59r0.3 ADJUSTMENT TO FEES ........,...............6010.4 PAYMENTSCHEDULEANDLATEFEES.......... .......................ó0

ARTTCLE 11. CONTRACTOR'S COMPENSATTON AND RATES.................................61I I.l CONTRACTOR'S COMPENSATION .......................6ttt.2 RATE ADJUSTMENT PROCESS..,............ ..............,.6tI I.3 INDEX-BASED ADJUSTMENT OF RATES, ...........63I 1.4 ANNUAL RATE APPLICATION PROCESS............... .................68I1.5 SPECTALRATEREVTEW ......................701l:6 RATES FORCHANGES IN SCOPE....... ....................?2tt.7 NoTrcE oF RATE ADJUSTMENTS_.......... .............72

ARTICLE 12.INDEMNITY, TNSURANCE, AND PERF'ORMANCE BOND ..................72I2,I GENERALINDEMNIFICATION... ........7212,2 ARTICLE Xilt INDEMNrFICATION.......,........ ........73r2,3 INDËMNTFICATTON RELATED TO PERSONNEL.......................................7412.4 INSURANCE.._.............. .......7412.5 PERFORMANCE BOND .........................78

ARTICLE 13. DEFA{JLT AND RBMEDTES................. .................79 '

l3.r EVENTS OF DEFAULT.............. ...........7913.2 RIGHTTOTERMINATEUPONDEFAULT. ...........80t 3.3 POSSESSTON OF pROpERTy tipoN TERMINATrON.....,...........................E0t3.4 CITY'S REMEDIES CUMULATIVE; SPECIFIC PERFORMANCE..........,... I ¡

r 3.s LIQUrDATEDDAMAGES...,.......... ......81

13.6 AB 939 AND AB 341-RELATED DAMAGES ............., ...............8313,7 EXCUSE FROM PERFORMANCE.................................... ...........84I3.8 RIGHT TO DEMAND ASSURANCES OF PERFORMANCE........................ 85

ARTICLE 14. OTHER AGREEMENTS OT' THE PARTIES............ ..............85I4.I RELATIONSHIP OF PARTIES... ............8514.2 COMPLTANCE \VITH LA$f ,......... .........85r4.3 GOVERNING LAÏV...... .......8s14.4 JURrSDICTrON....,...... ........86l4.s . BTNDING ON SUCCESSORS..,........... ......................8614.6 ASSICNMENT...,,............ .......................8614.7 PARTIES IN INT8REST.....,..,,.... ..........88r4.8 WAIVER... .......88t4.9 NOTTCE PROC8DUR8S...........,..... .......88I4.IO REPRESENTATIVES OF THE PARTIES.,. ....,.........89r4.r r CRTMINALACTIVITY OF CONTRACTOR......... ...,..:.......,.......89' 14.12 PUBLIC HEARING ON CONTRACTOR'S PERFORMANCE......................9I

ARTICLE 15. MISCELLANrEOUS AGREEMENTS............ 91

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List of Exhibits

Secretary' s Certifi cationNotary's CertificationContractor's ProposalImplementation PlanC ity-Approved SubcontractorsPublic Education and Communþ Outreach programsSchedule of Lìquidated DamagesCity-Approved Maximum Perrnissible Cu stomer RatesSample Reporting FormsIntentionally DeletedContractor' s Faithfu I Perform ance BondCity-Owned Equipment to be Acquired by ContractorCost-Based Rate Adjùsrment Methodo logy

ABcDEF

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4

FRANCHISE ÄGREEMENTBETWEEN

THE CITY OF FRESNO

AIID5 MID VALLEY DISPOSAL6 RESIDENTIAL SOLID \ilÄSTE, RECYCLABLE MATERIALS, ANI)7 ORGAIYIC MATERIALS SERVICES8 CITY.\ryIDE9l0 THIS FRANCHISE AGREEMËNT is made and entered into as of December 13, 2012, by andI I between the City of Fresno, a municipa¡ corporation ("City"), and Mid Valley Disposal, lnc.12 ("Contractor").l3

RECITALS14

15

l6t7l8t9202t2223242526272829303l32JJ3435363738394041

42

This Agreement is entered into with reference to the following facts and circumstances:

WHEREAS; the lægislature of the State of California (the "State"), by enactment of theCalifomia Integrated tüaste Management Act of 1989 ('îct") and subsequent additions andamendments (codified at California Public Resources Code Section 40000 et seq.), has declaredthat it is in the public interest to authorize and require local agencies to make adequate provisionsfor Solid V/aste Collection within their jurisdiction; and,

\ryHEREAS; the Legislature has found and declared that the amount of Solid Wasle generated inthe State, coupled with diminishing landfill space and potential adverse environmental impactsfrom landfilling and the need to conserve natural resources, have created an urgent need for Stateand local agencies to enact and implement an aggressive integrated waste management program.The State has, through enactment of the Act, directed the responsible State agency, and all localagencies, to promote diversion of materials from landfill Disposal and to maximize the use offeasible waste reduction, re-use, Recycling, and Composting options in order to réduce theamount of Solid Waste that must be Disposed; and,

WHEREAS; pursuant to the powers granted the City as a charter city by Article Xl, Section 5(a)of the California Constitution and Article XIII of the Fresno City Charter, the City hasdetermined that the public health,.safety, and well-being require that an exclusive right beawarded to a qualified contractor to provide for the Collection of Solid Waste, RecyclableMaterials, and Organic Materials generated by Residential Premises, except for Collection ofmaterials excluded in the City's Municipal Code, and other services related to meeting the Act'sfifty percent (50o/o) diversion goal and other requirements of the Act; and,

\ilHEREAS; pursuant to Article XIII of the Fresno City Charter, as implemented by Article 2 ofChapter6 of the City's Municipal Code, the City has the authority to provide for the Collection

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23

4

5

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I9

l0lll2t314

l5l6t718

l920

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and Disposal of Solid Waste through a franchise agreement with a Solid Waste Collectionprovider; and

WHEREAS; the City has conducted a competitive request for proposals process to'solicit thebest value proposal for providing services under this Agreement and Contractor was selectedthrough that process; and

WHEREAS; the City Council has determined, based on its investigation of the Contractor's pastperformancg that Contractor, by demonstrated experience, reputation and capacity, is qualifiedto perform Collection of Solid Waste, Recyclable Materials, and Organic Materials within thecorporate limits of the City, and the TransportatÌon of such material to appropriate places ofProcessing, Recycling, Composting, and/or Disposal; and City Council desires that Contractor beengaged to peiform such services on the basis set forth in this Agreement; and

\ryHEREAS, this Agreement has been developed by and is satisfactory to the Parties,

NOW THEREFORE, in consideration of the mutuâl promises, covenants, and conditionscontained in this Agreement and for other good and valuable consideration, the Parties agree asfollows:

ARTICLE T.DEFINITIONS

2324 For purposes of.this Agreement, unless a different meaning is clearly required, the following25 words and phrases shall have the following meanings respectively ascribed to them by this26 Article and shall be capitalized throughout this Agreement, When not inconsistent with the27 context, words and phrases used in the present tense include the future, and words and phrases28 used in the singular number include the plural nurnber.2930 '(Act'r means the California lntegrated Waste Management Act of l9E9 (Division 30 of the3l California Public Resources Code), as amended, supplemented, superseded, and ieplaced from32 time to time.JJ34 "Affiliate" means all businesses (including corporations, limited liability corpor¿it¡ons, limited35 and general partnerships and sole proprietorships) which are directly or indirectly related to36 Contractor by virtue of direct or indirect Ownership interest or common management. An3''l Affiliate shall include a business in which Contractor has a direct or indirect Ownership interest,38 a business that has a direct or indirect Ownership interest in Contractor, and/or a businlss that i;39 also Owned, controlled or managed by any business or individual, which has a dirèct or indirect40 Ownership interest in Contractor. For the purposes of this definition, "Ownership" means41 ownership as defined in the construitive ownership provisions of Section 3lS(a) of the lnternal42 Revenue Code of I 986, as in effect on the date here, provided that I 0 percent shall be substituted43 for 50 percent in Section 318(a)(2)(C) and in Section 3lS(a)(3)(C) thereof; and Secrion44 318(aX5XC) shall be disregarded. For purposes of determining Ownership under this paragraph45 and constructive or indirectownership under Section 318(a), Ownership interest oiless than ten46 percent (10%) shall be disregarded and percentage interests shall be determined on the basis of

I the percentage of voting interest of value which the ownership interest represents, whichever is2 greater..3¿-4 íAgreementr means this Agreement between the City and Mid Valley Disposal, Inc- for5 Residential Solid Waste, Recyclable Materials, and Organic Materials Services in the City,6 including all Exhibits, and any fuh¡re amendments hereto.7

I 'sAlternative Daily Cover' or .'AI)C" means cover material used to cover compacted Solid9 rrt/astes in a Disposal Site other than Organic Materials and other than at least six (6) inches ofl0 eafthen material, placed on the surface of the active face ofthe refuse fìll area at the end of eachI I operating day to control vectors, frres, odors, blowing litter, and scavenging, as defined in12 California Code of Regulations Title27, Section 20690.'l3l4' "Applicable Law" means all Federal, State, and local laws, regulations, rules, orders,l5 judgments, degrees, permits, approvals, or other requirement of any governmental agency having16 jurisdiction over the Collection, Transportation, Processing, and Disposal of Solid Waste,17 Recyclable Materials,.and Organic Mater¡als that are in force on the Efiective Date and as theyl8 may be enacted, issued or amended during the Term of this Agreement.19,20 "Approved Organic Materials Processing Site" means any of the following facilities: l) M¡d2l Valley Disposal Recycling and Transfer Station located at 15300 West Jensen Avenue, Kerman,22 California; 2) Creen Valiey Recycling located at2365 East North Avenue, Fresno, Califomia; or,23 3) West Coast ìVaste located at 3077 South Golden State Frontage Road, Fresno California all of24 which have been approved by the City Contract Manager.2s26 íApproved Recyclable Materials Processing Site" means any of the following facilities: l)27 Mid Valley Disposal Recycling and Transfer Station located at 15300 West Jensen Avenue,28 Kerman, California; 2) Sunset \ùy'aste Paper MRF located at 2721 Soufh Elm Avenue, Fresno,29 CA 93706; 3) Cedar Avenue Recycling and Transfer Station located at 3457 South Cedar30 Avenue, Fresno, California; and, 3) Waste Management Tulare County MRF located at 269513l Road 140, Visalia, California all of which have been approved by the City Contract Manager.5¿

33 r'Billings" means any and all statements of charges for services rendered, howsoever made,34 described or designated by Contractor, or made by other for City or Contractor, presented to35 Customers served by Contractor for the Collection of Solid Waste, Recyclable Materials, and36 - Organic MatErials in the City.3738 "Bulþ ltems" means large discarded items including, but not limited to, major appliances,39 furniture, carpets! mattresses, and other oversize materials whose large size precludes or40 complicates their handling by normal Collection, Processing, or Disposal methods, but can be4l Collected without the assistance bf special loading equipment (such as forklifts or cranes) and42 without violating Collection vehicle legal load limits. Bulky ltems do not include abandoned43 automobiles, large auto parts, or trees.4445 "Business Days" mean days during which City offices are open to do business with the public,46

I *Cart" means a rigid plastic container'with iîinged lid and wheels with capacity of up to2 ninety-six (96) gallons.J

4 "CERCLA" means the Comprehensive Environmental Response, Compensation and Liability5 Act of 1980, 42 USC 99601 et seq.67 "Change in Law" means any of the following events or conditions which has a material andI adverse effect on the performance by, the PaÉies of their respective obligations under this9 Agreement (except for payment obligations):

l0I I a. The enactment, adoption, promulgation, issuance, modification, or written change in12 administrativc or judicial interpretation on or after the effective date of any13 Applicable Law;ort415 b. The order or judgment of any governmental body, on or after the Effective Date, tol6 the extent such order or judgment is not the result of willful or negligent action, error17 or omission or lack of reasonable diligence or of the Contractor, whichever is18 asserting the occurrence of a Change in Law. The contesting in good faith or the19 failure.in good faith to contest any such order or judgment shallnot constitute or be20 construed as such a willful or negligent action, eror or omission or lack of2l reasonable diligence.2223 "City" means the City of Fresno, a municipal corporation, and all the territory lying within the24 municipal boundaries of the City as presently existing or as such, boundaries may be modified25 during the Term.2627 "City Contract Manager" means the'City's Solid Waste Manager or their desigriee, The Solid.28 Waste Manager may designate certain individuals or agents of the City as the City Contract29 Manager for specific issues, projects, or requirements. In the event. of a dispute between a30 designee and Contractor, the Solid Waste Manager's determinatio¡i shall be final. In the event3l that the "Solid Waste Manager" position is eliminated or reclassified, City Manager or their32 designee shall notifu Contractor of the appropriate replacement title or individual.3334 *City's Municipal Code" meaqs the City of Fresno Municipal Code.3536 "Collection" (or variation thereof) means the act of collecting Solid Waste, Recyclable37 Materials, Organic Materials, and other material at the place of generation.3839 *Commencement Date" means the date specified in Section 3.1 .4041 "Com¡nercial" shall mean of, from, or pertaining to non-Residential Premises where business42 activity is conducted, including, but not iimited to, retail sales, services, wholesale operatìons,43 manufacturing, charity, and Industrial operations, but excluding businesses conducted upon44 Residential property which are pennitted under applicable zoning regulations and are not the45 prirnary use of the property.46

I "Cornmingledtt means a mix of Recyclable Materials.n

3 '(Complaint" means written or orally communicated statements made by members. of the public,4 Customers, Owners, or Occupants of properties served by Contractor, or officers, employees or5 agents of City alleging non-performance or deficiencies in Contractor's performance, or6 otherwise alleging a violation by Contractor of the provisions of this Agreement.7I "Composting" or "Compost" includes a controlled biological decomposition of Organic9 Malerials yielding a safe and nuisance free Compost Product.

t0I I "Compost Product' means the product resulting from the controlled biological decomposition12 of Organic Materials that are Source Separated from the Solid Waste stream, or which arel3 separated at a centralized facility.t4l5 r'Contract Management and Enforcement Fee" means the fee paid by the Contractorto thel6 City to reimburse the City's costs of monitoring and enforcing the provisions of this Agreement,l7 both relating to contractor's obligations and customers' actívities.t8l9 "Construction nnd Demolition Debris or íC&I)tt includes discarded building materials,20 packaging, and rubble resulting from construction, remodeling, repair or demolition operations21 on any pavements, houses, Commercial buildings, or other structures,l,ì

23 "Contaminantst' means those chemicals, waste, or other materials that render 'normally24 Recyclable Materials and,/or Organic Materials unusable or cause them to lose their market25 value.2627 "Contractor" means Mid Valley Disposal, Inc. and its officers, directors, employees, agents,28 Affiliates, companies, and Subcontractors.2930 r'Contractor's Compensation" means the monetary compensat¡on received by Contractor in3l return for providing services in accordance with this Agreement as described in Article I l.3233 "Contractor Part¡1" shall mean Contractor, officers, directors, or management or fiscal34 employees (where "management employee" means any employee with direct or indirect35 responsibility for direction and control over the Contractor's activities under this Agreement and36 "fiscal" employee means an employee with direct or indirect responsibility and control duties37 relating to financial matters under this Agreement).3839 "Contractor's Proposal" rneans the proposal submitted by Contractor and received on October40 12,2012 by the City in response to the City's request for proposals for Resident¡ai Solid waste,4l Recyclable Materials, and Oiganic Materials Collection Services and sertain supplemental42 written materials, whioh are inoluded as Exhibit C and are incorporated by reference. Should any43. conflict arise between the Contractor's Proposal'and this Agreement, the Agreement shall44 control.4546 "criminal activity" means those activities described in section r 4.l r .1.

5

I2 "Customer" means the Person to'whom Contractor submits billing invoices and from whom3 Contractor collects payment for Collection services provided to a Premises. The Customer may4 bethe Occupant or Owner of the Preinises.5

6 "I)elivery" means placement of Solid Waste, Recyclable Materials, or Organic Materials by a7 Generator in a receptacle and/or at a location that is designated for Collection pursuant to theI City's Municipal Code,9

l0 "Designated Disposal Location" means the Orange Avenue Disposal Company, Inc. CedarI I Avenue Recycling and Transfer Station ("CARTS'') located àt 3457 South Cedar Avenue,l2 Fresno, California. The City may, at its sole discretion at any time during the Term of thisl3 Agreement, specify a different Designated Disposal Location, in accordance with Section 4.5.l4 All Solid Vy'aste shall be Transported to the Designated Disposal Location except for thc residuel5 from the Processing of Recyclable Materials or Organic Materials, which may be delivered to a¡ 6 Disposal Site selected by Contractor.l7l8 r'Designated Landfill Site" means the County of Fresno American Avenue Landfill located atl9 18950 W. Ameriian Avenue, Kerman, Califomia which shall be the Designated Landfìll Site20 until the termination or earlier expiration of the City's disposal agreement with the County of21 Fresno dated August 24, 1993 and terminating June 30,2014. Upon the termination or earlier22 expiration of the City's disposal agreement with the County of Fresno, the City may, in its sole23 discretion and subject to the reguirements of Section 6.3, designate an altemate Designated24 Landfill Site or may approve a landfill site proposed by Contractor. .

2526 "Designated Waste" means non-Hazardous Waste which may pose special Disposat problems27 becaùse of its potential to contaminate the environment and which may be Disposed of only in28 Class II Disposal Sites or Class III Disposal Sites pursuant to a variance issued by the California29 Department of Health Services.303l *Discarded Materials" rn€ans Solid Waste, Recyclable Materials, or Organic Materials placed32 by a Generator in a receptacle and/or at a location that is designated for Collection puruuant to33 the City's Municipal Code.3435 *Disposal" or "I)ispose" (or variation thereoÐ mÊans the final disposition of Solid Waste at a36 Disposal Site.3738 "Disposal Component" means the portion of each Rate required to recover the Contractor's39 costs associated with Disposing of Solid Waste at a Disposal Site. The initial Disposal40 Component of each Rate is listed in Exhibit H, The Disposal Component shall be adjusted in4l accordance with Section I 1.3.C for Rate Periods using the index-based adjustrnent to Rates. The42 Disposal Component shall be adjusted in accordance with Exhibit M for Rate Periods using the43 cost-based adjustment to Rates.4445 "Disposal Site" means a facility for ultimate Disposal of Solid Waste.46

"+

I "Effective Date" has the meaning asbribed in Section 3.1.2

3 "Electronic Wastet' has the meaning ascribed in Section 5.7.45 "Federal" means belonging to or pertaining to the national general government of thc United6 States; or founded on or organized under the constitution of the United States.7I "X'ee Component" means the portion of each Rate required to recover the Contractor's costs9 associated with payment of City Fees, as describsd in AÍicle 10. The initial Fee Component of .

l0 each Rate is listed in Exhibit H. The Fee Component shall be adjusted in accordance withI I Section I 1.3.E for Rate Periods using the index-based adjustment to Rates. The Fee Component12 shall be adjusted in accordance with Exhibit M for Rate Periods using the cost-based adjustmentl3 to Rates.l415 "Food Scraps" meani food scraps such as those Discarded Organic Materials that will16 de,cornpose and/or putre$/ including: (i) all kitchen and table food waste, and animal orl7 vegetable waste that attends or results from the storage, preparation, cooking or handling of food18 stuffs, and (ii) paper waste contaminated with food (such as, but not limited to, paper plates,19 napkins, pizza þ6*.t, and paper towels contaminated with food). Food Scraps is a subset of20 Organíc Materials2t22 "Franchise" is the exclusive right and þrivilege of Contractor to Collect, Transport, Process, and23 Dispose Solid Waste, Recyclable Materials, and Organic Materials from Residential Customers24 in the City in accordance with the terms and conditions of this Agreement.2526 "Franchise Fee" means the fee paid by Contractor to City for the privilege to hold'the exclusive27 rights granted by this Agreement.2829 *Generator' mearirs any Person as defined by the Public Resources Code, whose act or process30 produces Solid Waste, Recyclable Materials, or Organic Materials as defined in the Public3l Resources Code, or whose act first causes Solid Waste to become subjeot to regulation.3233 *Green Waste" means those Discarded Materials that will decompose and/or putrefy, including' 34 but not limited to, green trinrmings, grass, weeds, leâves, prunings, branches, dead plants, brush,35 tree trimmings, dead trees, small pieces of unpainted and untreated wood, and other types of36 organic waste. Green Waste is a subset of Organic Materials. Green Waste placed in a Cart for37 Collection shall not exceed six (6) inches in diameter and five (5) feet in length.3839 "Gross Receipts" means the actual monies remitted to Contractor by Customers, which shall be40 determined in accordance with Generally Accepted Accounting Principles.4l42 ('Ilazardous Substance" means any of the following: (a) any substances defined, regulated or43 |isted (directly or by reference) as "Hazardous Substances", "hazardous materials", "Hazardous44 Wastes", "toxic waste", "pollutant" or "toxic substances" or similarly identified as hazardous to45 human health or the environrnent, in or pursuant to (¡) CERCLA; (ii) the Hazardous Materials46 Transportation Act,49 USC $1802, et seq.; (iii) the Resource Conservation and Recovery Act,

I 42 USC $6901 et seq.; (iv)the Clean WaterAct,33 USC $1251 et seq.; (v) Califomia Health2 and Safety Code $$25110 et seq., 25281, and 25316; (vi) the Clean Air Acr,42 USC $240t3 et seq.; and (vii) California Vfater Code g13050; (b) any amendments, rules or regulations4 promulgated thereunder to such enumerated statutes or acts currently existing or hereafter5 enacted; and (c) any other hazardous or toxic substancg material, chemical, wâste or pollutant6 identified as hazardous or toxic or regulated under any other Applicable Law currentlyexisting7 or hereinafter enacted, including, without limitation, friable asbestos, polychlorinated biphenyl'i8 ("PCBs"), petroleum, natural gas and synthetic fuel products, pesticides, herbicides, and by-9 products.

t0I I 'úHazardous lVaste" means all substances defined as Hazardous Waste, acutely Hazardousl2 rdVaste, or extremely Hazardous Waste by the State in Health and Safety Code g25110.02,13 $25115, and $25117 or in the future amendments to or recodifications of such statutes or14 identified and listed as Hazardous lVaste by the U.S. Envìronmental Protection Agency (EpA),15 pursuant to the Resource Conservation and Recovery Act (42 USC g6901 et seq.), all futurel6 amendments thereto, and all rules and regulations promulgated there under.l7l8 d'Ilolidaystt are defined as New Year's Day, Labor Da¡ Thanksgiving Day, and Christmas Day.t920 "Infectious Waste" means biomedical waste generated at hospitals, public or private medical21 clinics, dental offices, research laboratories, pharmaceutical industries, blood banks, mortuaries,22 veterinary facilities and other similar establishments, as described in Health and Safety Code23 Section 25117.5. Infectious Waste shall not include home health care biomedical waste.2425 "Liquidated Damages" means tlie amounts due by Contractor for failure to meet specific26 quantifiable standards of pedormance as described in Section 13.5 and Exh¡bit G.2t28 "Maximum Permissible Rates" means the maximum Rates Contractor is permitted to charge29 pursuant to this Agreement.303l "Multi-Family" means any Residential Premises with five (5) or more units.'3233 ('Occupanttt means the Person who occupies a premises.3435 "Operating Component" means the portion of each Rate required to recover the Contractor's36 operating costs assooiated with providing services under this Agreement.3738 "Organic Materials" means those Discarded Materials that will decompose and/or putrefy and39 that the City's Municipal .Code permits, ilirects, and/or requires Generators'to separâte from40 Solid Waste and Recyclable Materials for Collection in specially designated Carts for Organic4l Materials Collection. lnitially, Organic Materials include only Green Waste. During the period42 of October.20l4 through January 2015, Contractor shall implement a full organic materials43 program to include Food Scraps with Green Waste. No Discarded Material shall be considered44 Organic Materials, however, unless such material is separated from Solid Waste and Recyclable45 Material.46

I ."Owner" means the Person holding legal title to the land or building.23 "Parent Company" refels to a company owning more than fifty percent (50o/o) of the shares of4 another company (subsidiary) or a company that has management control over such'subsidiary.5

6 "Party" or "Parties' refers to the City and Contractor, individually or together.78 "Person" means any individual, firm, association, organizatibn, partnership, corporation,9 business trust, joint venture, the United States, the State, the County of Fresno, and speciall0 purpose districts.ll12 "Premises" means any land or building in the City where Solid Waste, Recyclable Materials, orl3 Organic Materials are generated or accumulated.l415 "Processing" (or variation thereof) means to prepare, treat, or convert through some speciall6 method.t7l8 {'Processing Component" mearis the port ion of each Rate required to recover the Contractor's19 costs associated with Processing of Recyclable Materials and Organic Materials at a Processing20 Site.zl22 "Processing Site" means any plant or site used for sorting, cleansing, treating or reconstituting23 Recyclable Materials or Organic Materials to make such material available for benef¡cial use.2425 "Rate(s)" means the service charges and Special Charges for services under this Agreement that26 Conlractor bills and collects from each Customer receiving service under this Agreement.2728 "Rate Period" means a twelve (12) month period, commencing January I and concluding29 December 31, except that Rate Period I shall commence on the Commencement Date and30 conclude December 31,2013.3l32 "Recyclable Materials" means those Discarded Materials that State Law or the City Code33 permits, directs and/or requires Generators to set out in Recyclables Materials Cart for Collection34 for the purpose of Recycling. No Discarded Materials shall be considered Recyclable Materials35 unless such material is separated from Solid rWaste and Organic Materials. Recyclable Materials36 Shall include, but not be limited lo: newspaper (including inserts, coupons, and store37 advertisements); mixed paper (including office paper, computer paper, magazines, junk mail,38 catalogs, brown paper bags, brown paper, paperboard, paper egg cârtons, telephone books,39 grocery bags, colored paper, construction paper, envelopes, legal pad backings, shoe boxes, soap40 boxes, cereal and other similar food boxes); chipboard; cardboard; paper milk cartons; glass4l containers of any color (including glass bottles and jars all colors); aluminum cans; fabric42 softener containers; steel, tin or bi-metal cans; plastic containers (clear or green plastic soda and43 water bottles, plastic containers and bottles and plastic bags with no.7,2 or 3 on the bottom);44 and food containers from potato salad, pasta salad, whipped cream, etc.45

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"Recycle" or "Recycling" means thê process of sorting, cleansing, treating and reconstituting ofDiscarded ,Materials at a Recyclable Materials Processing Site for the purpose of returning suchmaterials to the economy in the form of raw materials for new, reused or reconstituted products.

'sRelated-Party Entity" means any Affiliate that has financial tränsactions with Contractorpertaining to this Agreement that has been approved by the City.

"Residential" shall mean all Premises with less than five (5) units designed or used forrtsidence or dwelling, whether permanent or temporary in nature.

"Salvageable Material" means those Discarded Materials that may bq reused in their existingform or may be reused after some form of Processing including, but not limited to, lightly useãclothing, toys, fi:rniture, building supplies, Organic Materials and Recyclable Materials.

"Single-Family" means. each unit used for or designated ¿Ís a Single-Family Premises, includingeach unit of a duplex, triplex, townhouse or condominium which receives individual SolidWaste, Recyclable Matérials, and/or Organics Materials Collection services.

5.

"Solíd Wastett means Source Separated Solid Waste as defrned in California Public ResourcesCode, Division 30, Paft l, Chapter 2, $40191 and regulations promulgated thereunder and thoseDiscarded Materials that the City Code requires Generators withiá the City to set out forCollection. Excluded from the defìnition of Solid Waste are Construction and Demolition Debris(C&D), Hazardous Waste, Infectious Waste, Designated Waste, Source Separated RecyclableMaterials, Source Separated Organic Materials, and radioactive waste. Solid Waste includesSalvageable Materials only when such materials are included for Collection in a Solid rüaste

Caft.

"Source Separated" means the segregation,'by the Generator, of materials designated forseparate Collection from other malerials. For example, recyclables may be Source Separatedfrom Solid Waste.

r'Special Charges" means the specific service-related charges provided in Exhibit H, and thatContractor shall bil I Customers i f appropriate

"Specialty Recyclable Material' means material that can be or will be Collected for purposesof Recycling by any Person othcr than the Contractor. Such Specialty Recyclable Material mayinclude, but is not limited to, scrap metal, high-grade paper (including office mixèd p'aper),pallets, mattresses, textiles, industrial plastics, precious metals, and plastic film.

"State" means the State of Califomia

"Subcontractor" means a party who has entered into a contract, express or implied, with theContractor or Guarantbr for the performance, of an. act that is necessary for the Contractor'sfulfillment of its obligations under this Agreement.

l0

ent, including extension periods if granted, as provided2 fo¡ in Article 3.3

4 ¡'Ton" or "Tonnage" means a unit of measure for weight equivalent to two thousand (2,000)5 standard pounds where each pound contains sixteen (16) ounces.67 "Transfer Station" means a permitted facility utilized to receive Solid Waste and OrganicI Materials, to temporarily store, separate, Recover, convert or otherwise process the materials9 comprising the Solid Waste, and to load Solid Waste and Organic Materials into Transfer

l0 Vehicles for Transport to the Disposal Site or an Approved Processing Site.ll12 "Transpoitation" (or variation thereof) means the act of transp'orting or state of beingl3 transported.t415 ARTICLE 2.16 REPRESENTATIONS AIYI)17 WARRANTIE,S OF THE18 CONTRACTORt920 The Contraclor, by acceptance of this AgreemenÇ represents and warrants the conditions2l presented in this Article.22

23 2.I CORPORATE STATUS24 Contractor is a Corporation, duly organized, qualified to transact business, and validly existing25 and in good standing under the laws of the State of California. It has the power to own iti26 properties and to carry on its business as now owned and operated and as required by this27 Agreement.28

29 2.2 CORPORATE AUTHORIZATION30 Contractor has the authoriry to enter this Agreement and perform its obligations under this3l Agreement. The Contractor has taken all actions required by law, its alticles of organization, its32 operating agreement, or othcrwise, to authorize the execution of this Agreement. The Person33 signing this Agreement on behalf of Contractor represents and warrants that he/she has have34 authority to do so; the Corporate Secretary's Certification in Exhibit A confirms this; and the35 Notary's Certification in Exhibit B is completed. This Agreement constitutes the legal, valid,36 and binding obligation of rhe Contractor.37

38 2,3 AGREEMENT WILL NOT CAUSE BREACH39 To the best of Contractor's knowledge after reasonable investigation, the execution or delivery of40 this Agreement or the performance by Contractor of its obligations hereunder does not conflict4l with, violate, or result in a breach: (i) of any law or governmental regulation appticable to42 Contractor; or (ii) any term or condition of any judgment, order, or decree of any court,43 administrative agency or other governmental authority, or any Agreement or inshument to which

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Contractor is a party or by which Contractor or any of its properties or assets are bound, orconst¡tutes a default thereunãer.

2,4 NO LITIGATIONTo the best of Conhactor's knowledge after reasonable investigation, there is no action, suit,proceeding or investigation, at law or in equify, before or by any court or governmentalauthority, commission, board, agency or instrumentality decided, pending or threatened againstContractor wherein an unfavorable decision, ruling or fìnding, in any single case or in theaggregate, would:

A. Materially, adversely affect the performance by Contractor of its obligations herei¡nder;

B. Adversely affect the validity or enforceability of this Agreement; or

C. Have a material adverse effect on the financial condition of Contractor, or any surety orentity guaranteeing Contractor's performance under this Agreement.

18 2.5 NO ADVERSE JUDICIAL DECISIONSl9 To the best of Contr¿ctor's kñowledge after reasonable investigation, there is no judicial decision20 that would prohibit this Agreement or subject th¡s Agreement to legal challenge.21

2.6 NO LEGAL PROHTBITIONTo the best of Contraçtor's knowledge after reasonable investigation, there is no Applicable Lawin effect on the date Contractor signed this Agreement that would prohibit the Contractor'sperformance of its obligations under this Agreement and the transactions contemplated hereby.

2,1 CONTRACTOR'S STATEMENTSThe Contractor's Proposal in Exhibit C and any other supplementary information submitted tothe City, whioh the City.has relied on in awarding and entering this Agreement, do not: (i)contain any untrue statement of a material fact, or (ii) omit to state a material fact that isnecessary in order to make the statements made, in light of the circumstances in which they weremade, not misleadinþ.

The Contractor agrees to implement all proposed services and initiatives included in theirProposal @xhibit C). Contractor shall, prior to March 4, 2013, execute an amendment to itsCommercial and Multi-Family Solid rvVaste, Recyclable Materials, and Organio MaterialsServices Franchise Agreement (hereinafter *CSV/ Franchise") with the City. That amendmentshall document the Conbactor's Proposal to provide bundled Solid Waste, Recyclable Materials,and Organic Materials Collection Services to certain Multi-Family Customers serviced under theCSW Franchise at the same rates as are provided to Customers under this Agreement. Therevised Maximum Permissible Rates shall becomE effective for Multi-Iamily Customers' April2013 services.

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2.8 CONTRÂCTOR'SI¡¡-VESTIGATIOContractor has made an independent investigation (satisfactory to. it) of the conditions andcircumstances surrounding the Agreement and the work to be performed hereunder. Contractorhas considered such matters in entering this Agreement to provide services in exchange for thecompensation provided for under the terms of this Agreement.

2.9 ABILITY TO PERT'ORM

Contractor possesses the business, professional, and technical expertise to provide the servicesdescribed in this Agreement. Contractor possesses the equipment, facility(ies), and employeeresources required to perform its obligations under this Agreement.

2.IO VOLUNTARY USE OF DESIGNATED FACILITIESThe Contractor, without constraint and as a free-market business decision in accepting thisAgreement, agrees to use the Designated Disposal Location for the purposes of Disposing of allSolid Waste Collected in the City. Suc-h decision by Contractor in no way constifutes a restraintof trade notwithstanding any Change in Law regarding flow control liÉritations or any definitionthereof.

ARTICLE 3.TERM OF AGREEMENT

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3.I EF'FECTIVE DATE AND COMMENCEMENT DATEThis Agreement shall become effective on the date set forth in the preamble to this Agreement(the "Effect i ve Date").

The Commencement Datc shall be March 4,2013. Contractor shall commence provision of theCollection, Transportation, Processing, and Disposal services required by thís Agreement on theCommencement Date.

Between the Effective Date and Commencement Date, Contractor shall perform all activitiesnecessary to prepare itself to start all services required by this Agreement on the CommencementDate. Such activities shall allow Contractor to transition Customers and services, which areprovidtid by the City prior to the Commencement Date, to Contractor on the CommencernentDate,

36 3.2 CONDITIONS TO EFFECTI\¡E¡{ESS OFAGREEMENT37 The obligation of City to permit this Agreement to become effective and to perform its38 undertakings provided for in this Agreement is subject to the satisfaction of all the conditions39 below, each of which may bè waived, in written form, in whole or in part by City.40

' 41 A. Àccuracy of Representations. The representations and warranties made in Article 2 of42 this Agreement are true and correct on and as of the Effective Date.43

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Absence of Litigation, There is no litigation pending on the Effective Date in any courtchallenging the award or execution of this Agreement or seeking to restrain or enjoin itsperformance.

Furnishings of fnsurance and Performance Bond. Contractor has furnished evidenceof the insurance and performance bond required byArticle 12 that is satisfactory to theCity,

Effectiveness of City Council Action. The City Council shall have taken actíonapproving this Agreement and all Parties shall have signed the Agreement pursuant toApplicable Law prior to or on the Effective Date, provided that no restraining order ofany kind has been issued.

14 3.3 TERMl5 TheTerm of thisAgreement shall continue in full force for a period of eight(8) years and nineló (9) months from 12:01 a.m. on the Commencement Date to midnight of November 30,2021l7 unless the Agreement is extended by City Council pursuant to Section 3.4 or terminated inI I accordance with Section 13.2.19

3.4 OPTION TO EXTEND TERMAt the City Council's sole discretion, the City shall have the option to extend this Agreement forup to fwo (2) periods ranging from one (l) to five (5) years each. The total of all extensionperiods shall equal no more than ten (10) years. If the City extends the Agreement, it shall givew¡itten notice to Contractor one hundred eighty (180) calendar days prior to the initial expirationdate or extended expiration date of this Agreement. The City's written notice shall specify thenumber of years by which it elects to extend the Term of this Agreement and the revisedexpiration date of the Agreement.

ARTICLE 4.SCOPE OF AGREEMENT

4.1 SCOPE OF'AGREEMENTThis Franchise granted to Contractor shall be exclusive with regards to Collection, Transporting,Processing, and Disposal of Residential Solid \rry'aste, Recyclable Materials, and OrganicMaterials generated in the City, except as described in Section 4.2 or except where otherwiseprecluded by Applicable Law.

The Contrâctor, or its Subcontractor(s), shall be responsible for the following services:

A. collecting all solid waste generated by Residential premises in the city.

B. Collecting all Recyclable Materials and Organic Materials generared by ResidentialPremises in the City and placed by Generator fo¡ Collection in Contractor-providedCarts.

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I2 C. Transporting all Solid Waste Collected in accordance with this Agreement to the3 Designated Disposal Location.45 D. Transporting all Recyclable Materials Collected in accordance with this Agreement to the6 Approved Recyclable Materials Processing Site.7

I E' Transporting, Processing, and marketing all Organic Materials Collected in the City by9 Contractor to the Approved Organic Materials processing Site.

l0I I F. Furnishing all labor, supervision, vehicles, Carts, other equipment, materials, supplies,12 and all other items and services necessary to perform its obligations under this13 Agreement.14

l5 G. Paying all expenses related to provision of services required by this Agreement including,I6 bul not limited to, taxes, regulatory fees, Dìsposal and Processing fees, utitities, etc.17

l8 H. Providing all services required by this Agreement in a thorough and professional manner19 so that Owners and/or Occupants are provided timely, reliable, courteous, and high-20 quality service at all times.2l22 l. Performing all services in full accordance with the Contractor's Proposal and this23 Agreement at all times using best industry practice for comparable operations. If the24 Contractor's Proposal and this Agreement conflict, this Agreement shall prevail.2526 J. Implementing all services in accordance with the implementation plan in Exhibit D.2728 K. Complying with Applicable Law.29-30 L. Performing or providing all other services necessary to fulfitl its obligations under this3l Agreement.3233 The enumeration and specification of particular aspects of service, labor, or equipment34 requirements shall not relieve Contractor of the duty of accomplishing all other asp€cts necessary35 to fulfill its obligations under this Agreement whether such requirements are enumerated36 elsewhere in the Agreement or not,37

38 4.2 LIMITATIONS TO SCOPE39 The materials listed below in this section may be collected and transported by other Persons..40 Except as set foÉh in paragraph "C" bêlow, Contractor is not authorized by this Agreement to4l Collect or Transport any of the following:4243 A. Other Franchisees. Materials which are included in the scope of City's exclusive44 Commercial or non-exclusive roll-off agreement, or other franchise or service agreements45 which are Collec.ted by a Person holding such a franchise agreement.46

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Construction and Demolition Debris. Conshuction and Demolition Debris removedfrom P¡emises by a franchisee of the City for roil-offcollection services or a companylicensed by the City to provide such Collection services in the City.

Commodities. Recyclable Materials, Organic Materials, and Specialty RecyclableMater¡als which Owner or Occupant: (l) separates from Solid lVaste, (2) places in a Canwhich is not provided by Contractor, and (3) sells, donates, or is otherwiie compensatedfor by a collector;

, , Materials Hauled by Owner or Occupant, or its Contractor. Solid Waste, RecyclableMaterials, Organic Materials, C&D, and Specialty Recyclable Materials that are removedfrom any Premises by the Owner or Occupant and are Transported to a Disposal Site orProcessing Site by (i) the Owner or Occupant of such Premises, by a full-time employeeof Owner or Occupant that uses the Owner's or Occupant's equipment to traìsportmaterials; or (ii) by a contractor whose removal of the Solid Waste, Recyclable Materials,Organic Materials, C&D, and/or Specialfy Recyclable Materials are incidental to theservice being performed and such contractor removes materials at no additional orseparate fee;

I)onated Materials. . Source Separated Recyclable Materials, Organic Materials, and

Specialty Recyclable Materials generated in the City that are donated by the Generaior toyouth, civic, neighborhood, charitable, or other nonprofit organizatíons;

Containers Recycled. Beverage containers delivered for Recycling under the CaliforniaBeverage Container Recycling and Litter Reduction Act, Section 14500, et seq.Califomia Public Resources Code;

Animal and Grease Waste. Animal waste and remains from slaughterhouse or butchershops, or grease waste for use as tallow;

Sewage Treatment By-Product. By-products of sewage treatment including sludge,sludge ash, grit, and screenings;

Hazardous \ilastes. Hazardous Waste and Designated Waste regardless of its source;

State, Federal, and Public School Wastes. Materials generated by State and Federalagencies and public schools located in the City.

Contractor acknowledges and agrees that the City may allow other 'persons besides theContractor to Collect any and all rypes of materials excluded from the scope of this Franchise, asset forth above, without seeking or obtaining approval of Contractor. If other persons areservicing Collection Carts or are Collecting and Transporting Solid Waste, Recyclable Materials,and/or Organic Materials in a.manner that is not consistent with the City's Municipal Code,Contractor shall repoft the location and the name of the Person or company to the City ContractManager along with Contractor's evidence of the violation of the exclusivity of this Franchise.

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{The City is under no obligation to act upon receipt of notice. Contractor's reporting is not in lieuof any other rights it has, or may have, to enforce its legal rights.

This Agreement and scope of this Franchise shall be interpreted to be consistent with ApplicableLaw, now and during the Term of the Agreement. If future judicial interpretations of cunent lawor new laws, regulations, or judicial interpretations limit the ability of the City to lawfi.rllyprov¡de for the scope of services as specifically set forth herein, Contractor agrees that the scopeof the Agreement will be limited to those services and materials which may be lawfully providedand that the City shall not be responsible for any lost profits or losses claimed by Contractor toarise out of limitationsof the scope oftheAgreement set forth herein. In such ari event, it shallbe the responsibility of Contractor to minimize the financial impact of such future judicialinterpretations or new laws.

4.3 SUBGONTR.A,CTING

Conhactor shall not engage any Subcontractors for Collection, Transportation, Processing, orDisposal of Solid Waste, Recyclable Materials, or Organic Materials without the prior writtenconsent of the City Contract Manager. As of the Effective Date of this Agreement, the City hásapproved Contractor's use of the Súbcontractors listed in Exhibit E. Contractor's use ofSubcontractor(s) does not in any vvay limit the Contractor's obligations under this Agreement.The City reserves the right to require Contractor to replace a Subcontractor in the êvent of aregulatory or criminal judgment against a Subcontractor and a .legal judgment against aSubcontractor that is related to performance under this Agreement.

4.4 OWITERSHIP OF MATERIALSOnce Solid Vy'aste, Recyclable Materials, and Organic Materials are placed in Carts at theCollection location,.ownership and the right to possession of such materials shall transfer directlyfrom the Generator to Contractor. Once Solid Waste, Recyclable Materials, or Organic Materialsare deposited by Cohtractor at a Disposal Site, Transfer Station, or Processing Site, suchmaterials shall become the property of the owner or operator of the facility.

Subject to Section 4.5 and City's contractual obligations pursuant to any contraçl bctweenContractor and City for the Processing or Disposal of Solíd \ilaste, Recyctable Materials, orOrganic Materials, City may obtain ownership or possession of Solid Waste, RecyclableMaterials, or Organic Materials placed for Collection upon written notice to Contractor of itsintent to do so. However, nothing in this Agreement shall be construed as giving rise to anyinference that City has such ownership or possession unless such written notice has been given toContractor.

Ownership shall not limit police or duly authorized law enforcement from inspection of SolidWaste, Recyclable Materials, and Organic Materials placed in Carts as necessary in performanceof their duties. Contractor specifically waives any and all necessity for search warrant, probablecause or exigent circumstances to ex¡st for any such inspection.

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CITY-DIRECTED CHANGES TO SCOPETypes of Changes. Subject to Council approval, the City Contract Manager may directContractor to perform additional services or modif, the manner.in which existingservices are performed (i.e., City Cbntract Manager requests, reviews, and submits toCouncil for approval), provided that the City-directed changes do not substantiallyeliminate the Contractor's right, as described in and limited by this Agreement, to CollectSolid Waste, Reiyclable Materials, and Organic Materials in the City. For example, andwithout limitation, the city contract Manager may request the following:

1. Collection of ce¡tain materials, which were originally Solid Waste, but during theTerm can, in the reasonable opinion of the City Contract Manager, be economicallyRecycled, Composted, or beneficially used including. but not limited to, energy orfuel production;

2. lnclusion of new diversion programs, which necessarily reduce the amount of SolidWaste Collected;

,: Expansion of public education activities;

4, Elimination of programs;

5' Modification of the manner in which Contractor performs existing services;

6. Performance of pilot programs;

7. Implementation of innovative services, which may entail new Collection methods,targeted routing, different kinds of services, dìfferent types of Collectíon vehicles,and/or new requirements for Generators;

8. Use of a Disposal Site that is different f¡om the Designated Disposal Location inaccordance with Section 6.3.

9. Use of a Recyclables Processing Site that is different from the Approved RecyclableMaterials Processing Site in accordance with Section 6..l.

10. Use of an Organic Materials Prócessing Site that is diffErent from rhe ApprovedProcessing Site in accordançe with Section 6.2.8.

Procedure for Making Changes in Scope. Contractor shall present, within thirty (30)calendar days of the City Contract Manager's written request or another date agreed to bythe City Contract Manager, a written proposal for the change in scope of services in aformat and at a level of detail specified by the City Contract Manager. At a minimum,the proposal shall contain a complete description of the following:

l. Collection methodology to be employed, or modifications to current Collectionsrnethods (equipment, manpower, etc.).

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2. Equipment to be utilized, modified, or eliminated (vehicle number, types, capacity,age, etc.).

3. Labor requirements (number of employees by classification).

4. Type of materials and Carts to be utilized.

5. Change in Transportation, Processing, and/or Disposal costs.

6. Provision for progiam publicity, education, and/or marketing.

7. Five-year projection of the fìnancial results of the program's operations in a balancesheet and operating statement formât including documentation of the k"yassumptions underlying the projections and the support for those assumptions, givingñ¡ll effect to the savings or costs to existing services.

8. Plans for implementing the service change in a format and at a level of detailspecified by the City Contract Manager.

9. Proposed Rates that reflect the service change with supporting documentation of thecalculation and justification for the change in Rates.

The City Contract Manager shall review the Contractor's proposal for the change inscope of services. lf the Contractor's proposal is desirable to the City and approved bythe City Council, the City Contract Manager may negotiate with the Contractor to amendthe Agreement to reflect.the change in scope. If the Contractor's proposal is not desirableto the City, the City Contract Manager shall provide a written response to the Contractorîdentifying the city's r€asons for not wanting to negotiate with the Contractor,

If the City elects to negotiate with the Contractor and the Contractor and City ContractManager cannot agree on terms and conditions of such serviçes in 180 calendar daysfrom the date when City Contract Manager first requests a proposal from Contractor toperform such services, Contractor shall forfeit its exclusive right to Collect such materialûom Generalors or provide the services under consideration. Thereafter, the City may,but is not required to, provide the service with its own forces or solicit proposals fromone or more other parties for such service and Contractor may be invited to submit aproposalduring the process. If the City elects to solicit proposals from one ormore otherparties, City shall not enter into a separate agreement with any other party unless theyprovide a better value to the City than was offered by Contractor's proposal.

If the City and Contractor reach an agreement on the change in scope, the City andContractorshallalso agree to performance standards and expected results of such changein scope, as wellas the basis for termination of the program. Any change in scope shallbe memorialized.in an amendment to this Agreement approved by City Council. In theevent the Contractor does not provide the services in a manner materially consistent with

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or better than the agreed upon performance standards and expected results, the City shallhave the right to terminate the new pro$am or service and provide the service with itsown forces or retain a third party to provide the service. Performance standards andexpected results may focus on progr¿¡m costs, the cost per Ton of materials diverted, levelof participation in the program, comparison of costs to other similar programs, volume ofmaterial diverted, and other factors.

Adjustment to Contractor's Compensation. If the City Contract Manager directs achange in scope, Contractor shall be entitled to an adjustmeñt in its compensation asagreed to by City and as described in Section I1.6. Contractor shall not be compensatedfor proposal preparation costs or additional costs incurred related to the negotiation of itsproposal for the City-requested change in scope.

Implementation of New Services. The Contractor's implementation of the new ormodified services shall be managed by Contractor in such a manner as to ensure a timely,smooth, and seamless transition such that Customers and/or Generators do not experiencedisruption in Collection services. Contractor shall be responsible for managingimplementation of Collection service changes, or changes in the Designated DisposalLocatiön, Approved Organic Materials Processing'Site, Approved Recyclable MaterialsProcessing Site and/or other related services and shall do so in accordance with a CityContract Manager-approved implementation plan.

'Monitoring and Evaluation of Changes in Scope. Contractor shall document itscompliance with the agreed-upon performance standards and the program results of theservice changes on a monthly basis, including, for example, the Tonnage diverted bymaterial type, the end use or processor of the diverted materials, and the cost per Ton forTransporting and Processing each type of material and other such information requestedby the Contractor and/or City Contract Manager necessary to evaluate the performance ofthe change in scope.

If the City Contract Manager requests, the Contractor shall meet with the City to describethe progress of the implemenlation of the change in scope. At each meeting, the City andContractor shall have the opportunity to revise the services or program based on mutuallyagreed.upon lerms in accordance with provisions of this Section. The Cify shall have theright to terminate a program if, in its reasonable judgment, the Contractor is not achievingthe program's mulually agreed-upon performance standards and expected results. Beforesuch termination, the Ciry.Contract Manager shall meet and confer with the Contractorfor a period not to exceed one hundred eighty (180) calendar days to resolve the City'sconcerns. Thereafter, the City may provide the service with its own forces or utilize athird party to perform these services, if the City reasonably believes the third party canimprove on Contractor's performance and/or cost. Notwithstanding these changes,Contractor shall continue the program during the meet and confer period and, thereafter,until the third parly takes over the program.

CITY'S RIGHT TO PERFORM SERVTCES AND POSSESS EQUIPMENT

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4.6.1 General2 The City, in its reasonable judgment, nâY determine a period of emergency if both of thË3 following conditions occur: (i) Contractor, for any reason whatsoever, fails, refuses, or is unable4 to perform its Collection obligations, at the time and in the manner provided in this Agreement,5 for a period of rnore than forty-eight (4S) hours, and (ii) the City finds that such failurã, refusal,6 or inability endangers or menaces the public health, safety, or welfare. If the City determines a7 period of emergency, then the City shall have the right during the period of such emergency, and8 nq longer, to (i) perform, or cause to be performed, such services with íts owr or other personnel9 without liability to Contractor; and/or (ii) take temporary possession of and use any or all ofl0 Contractor's equipment used to provide Collection, Transportation, Processing, and Disposal1l services under this Agreement. If the City chooses to exercise such rights, the City shalt provide12 written notice to the Contractor twenty-four (24) hours prior to its plans to exercise its rights.l3 Such notice shall describe the Contractor's failure, refusal, or inability to perform its Collection14 obligations detailing the obligations the City contends Contractor did not perform and of thel5 City's inlent to.perform Collection services and/or possess Contractor's equipment. The CÍtyl6 agrees that it assumes complete responsibility forthe proper and normat use of such equipment17 and facilities while in its possession.t8l9 Contractor agrees that in such event:2021 A. It shall take direction from the City Contract Manager to affect the transfer of possession22 of equipment to the City for City's use.2324 B. lt shall, if able to and City Contract Manager so requests, keep in good repair and25 condition all of such equipmenq provide all motor vehicles with fuel, oil and other26 service, and provide such other service as may be necessary to maintain said equipment27 in satisfactory operational condition subject to compensation as provided in this Section28 4.6.1.29

30 C. Subject to provisions of any labor agreements then in effect, if able, Contractor shall31 provide the services of all or any personnel necessary for the Collection, Transportation,32 Processing, and Disposal operations including, if City so desires, employees then33 employed by Contractor. Contractor further agrees, if it is able, and City Contract34 Manager.so requests, to furnash City the services of any or all management or office35 personnel employed by Contractor whose services are neoessary for Collection,36 Transportation, Processing, and Disposal operations and for the Billing and collection of37 fees for these services.3839 If the interruption or discontinuance of service is caused by any of the reasons listed in this40 Section 4.6.1 or in Section 13.7, and where the City can perform services and the Contractor4l cannot, the City shall pay to Contractor two hundred dollars (S200) per day for use of each42 Collection vehicle and the reasonable ¡e.ntal value of other equipment and facilities, possession43 of which is taken by the City, for the period of the City's possession, if any, which extends44 beyond the period of time for which Contractor has rendered bills to Customers in advance of45 service. The City shall be responsible for the fueling and preventative maintenance act¡v¡ties46 during such a period. Should Contractor's equipment require repair beyond fueling and

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preventative maintenance, City shall deduct from any rental payment to Contractor the actualcost of such repairs performed by City or it's selected third-party vendor.

Except as otherwise expressly provided in the previous paragraph,'the City's exercise of its rightsunder this Article: (i) does not constitute a taking of private property for which compensationmust be paid; (ii) will not create any liability on the part of City to Contractor except for City'sintentional wrongñrl acts or negligence; and (iii) does not exempt Contractor from the indemnityprovisions of Article 12, which are meant to extend to circumstances arising under this Section.

4,6.2 Duration of City's PossessionCity has no obligation to maintain possession of Contractor's equipment and/or continue its usein Collection, Transportation, Processing, and Disposal for any period of time and may, at anytime, in its sole discretion, relinquish possession to the Contractor.

The City's right to retain temporary possession of Contractor's equipment; and to provideCollection services, shall continue until Contractor can demonstrate to the City's satisfaction thatit is ready, willing and able to resume such services or for one hundred eighty (180) calendardays, whichever occurs first.

4.7 TRANSITION TO NEXT CONTRACTOR AT END OF AGREEMENTIf applicable, before expiration or earlier termination of th¡s Agreement, Contractor will takedirection from the City Contract Manager and/or subsequent contractor to assist in an orderlytransition of services from Contractor to City or subsequent conhactor. ln response to the CityContract Manager's direction, Contractor shall provide route lists (which identiff each Customeron th€ route, its service level and scheduled Collection day, and any.special Collection notes)and detailed Customer account and Billing information. Contractor may, but shall not beobliged, to sell Collection vehicles, equipment, or facilities to the next contractor. Faìlure tocooperate with and/or provide information during the transition period may result in LiquidatedDamages in accordance with Section 13.5 and Exhib¡t G.

4.8 CITY FREE TO NEGOTIATE WITH TIIIRD PARTIESThe City may investigate all options for Collection, Transportation, Processing, and Disposalservices that will be scheduled to commence after. the expiration of fhe Term or earliertermination of this Agreement. Without limiting the generality of the foregoing, the City maysolicit proposals fiom Contractor and from third parlies for the provision of Collection,Transportation, Processing, or Disposal of Solid lrtry'aste, Recyclable Materials, and OrganicMaterials, and any combination thereof. The City may negotiate and execute agreements forsuch services that will take effect upon the expiration or earlier termination of this Agreement,

ARTICLE.5.COLLECTION SERVICES

5.1 SOLD WASTE COLLECTION

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Contractor acknowledges that the Cìty is committed to diverting materials from Disposal throughthe imþlementation of source reduction, reuse, Recycling, Composting, education, and othlrprograms. The City may implernent, in accordance with Section 4.5 or through the City's efforts,new programs that may impact the overall quantity or composition of Solid rvVaste to beCollected by Contractor. Such changes may result in the substantial reduction or elimination ofSolid Waste Collected for Disposal.

Contractor shall Collect Solid Waste in Contractor-provided Carts once per week fromResidential Premises and Transport all Solid rrVaste to the Designated Disposal Site for Disposal.Contractor shall provide each Customer with a 64-, or 96-gallon Cart (or similar sizes approvedby the City) as requested by the Customer. If a Customer requests a second Solid Waste Cart,Contractor shall provide the Cart to the Customer for regular weekly Collection service. TheContlactor shall charge the Customer for the extra Solid Waste Cart at the Rate approved by theCity shown in Exhibit H.

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16 5.2 RECYCLABLE MATERIALS COLLECTION

Contractor shall Collect Recyclable Materials lhat are Commingled in the Customer'sRecyolable Materials Collection Cart provided that the Custorner has Sourde Separated theRecyclable Materials from Solid Waste. The Contractor may also Collect individual SourceSeparated Recyclable Materials including, but not necessarily limited to, cardboard, beveragecontainers, office paper, or scrap metal to reduce either (i) the cost to the Customer of receivingthe service; or, (ii) the level of contamination in Commingled Recyclable Materials. Collectionof individual Source Separated Recyclable Materials shall not excuse Contractor from offeringand providing Commingled Source Separated Recyclable Materials Collection services to allCustomers.

Contractor shall Collect all Recyclable Materials from Residential Premises once each week onthe regularly scheduled Solid Waste Colleotion day. Contractor shall supply each ResidentialCustomer with one (l) Cart for storage and Collection of Recyclable Materials. The Contractorshall provide each Customer a 96-gallon Cart (or similar size approved by the City). If aCustomer requests a second Recyclables Cart, Contractor shall provide the Cart to the Customerfor regular weekly Collection servico. The Contraclor shall charge the Customer for the extraRecyclables Cart at the Rate approved by the C¡ty in Exhibit H.

The City's Municipal Code requires all Resídential Customers to participate in a Recyclingprogram. In the event that a Customer refuses Recyclable Materiats Collection services or Cartsprovided by Contractor, Contractor shall notis the City Contract Manager of such refusal forreporting pu{poses.

In accordance with Section 4.5, the City Contract Manager may request Contractor to modify itsscope of service to incluile Collection of recyclable materials in addition to those defined inAfticle l. If the City Contract Manager requests Collection of additional recyclable materials,the Contractor shall not receive additional compensation for such service if the recyclablematerials are placed by Generator in the existing Recyclable Materials Cart.

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2 5.3 ORGANIC MATERIALS COLLECTIONârJ4 Contractor shall Collect Organic Materiãls that are placed in the Customer's Organic Materials5 , Collection Cart provided that the Customer has Source Separated the Organic Materials from6 Solid Waste and Recyclable Materials.7

8 Contractor shall Collect Organic Materiâls from each Residential Customer once each week on9 the regularly scheduled Solid Waste Collection day. Organic Materials shall be Collected andl0 Transported to the Approved Organic Materials Processing Site. Contractor shall instructI I Customers as to the types of organic materials accepted for Collection (and those prohibited);lZ any necessary preparation of Green Waste (such as the cutting of large items). Contractor shalll3 notiff Customers who fail to follow these instructions. In cases of extreme or repeated failure to14 comply with the instructions, Contractor shall notifo the City of the Customer's violation.l516 The City's Municipal Code requires all Residential Customers to participate in an Organic17 Materials program. ln the event that a Customer refuses Organic Materials Collection servicãs orl8 ' Cafts provided by Contractor, Contractor shall notifo the City Contract Manager of such refusall9 for reporting purposes.202l Contractor shall add Food Scraps to the Organic Materials Collection program between October22, 2014 and January 2015 with all Customers having access to the program no later than January23 31,2015. Contractormay, at its sole discretion, phase the implementation of the program on a24 route-by-route basis durìng this time. Contractor shall prepare a unique public education and25 outreach campaign for the expansion of this program. Such education and outreach campaign26 shall include, at a minimum, direct mailings to each Custome¿ messages through the27 Contractor's and City's existinþ social media platforms, and local news media coverage (e.g.28 newspaper, radio, television).2930 ln accordance with Section 4.5, the Ciry Contract Manager may request Contractor to modif, its3l scope of service to include Collection of organic materials in addition to those defined in Article32 l, lf the City Contract Manager requests Collection of additional organic materials, the33 Contractor shall not receive additional compensation for such service if the organic materials are34 placed by Generator in the existing OrganicMaterials Cart.35

36 Contractor shall Collect Christrnas trees from Customers during the first two weeks of each37 calendar year. Christmas trees shall be Collected on the Customer's regular Collection day' 38 during the designated week. Contractor'shall notifr Customers of the availability of this program39 and all program requirements during December of each year and may use existing public40 education materials or bill inserts to provide such information. Christmas trees shall be Co|lected41 from.a curbside looation near the customer's organic Materials cart.

42 5.4 SCIIEDULED NEIGITBORHOOD CLEAN-UP43

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General Requirements. Contractor shall provide one (l) neighborhood clean-up eventsthroughout the City so that each Customer has an opportunity to pafticipate in one (l)event per year. This program shall be operated at no additional charge to Customers.

The Contractoi shall schedule, promote, rnanage, stafl and operate the neighborhoodclean-up services. Contractor shall promote the service no less than one (l) week prior tothe scheduled events through direct mail to all customers in the neighborhood scheduledfor the event. The City shall approve all advertisements or public announcements retatedto the neighborhood clean-up service.

Contractor shall operate this program in a manner that prioritizes the reuse and recyclingof matcrials collected, Contractor shall work with non-profits to collect and reusematerials from this progrâm for donation or resale to the greatest extent practical.

Accepted Materials. During each neighborhood clean-up event, Customers may set outand Contractor shall Collect an unlimited volume of:L Bulky ltems that are less than two hundred (200) pounds and seven (7) feet in length;2. Solid Waste, Recyclable Materials, and Organic Materials which are properly

bagged and contained; and,3. SalvageableMaterials.

Contractor may reject: líquids or sludges; materials (other than Bulky ltems) whichexceed five (5) feet in length and are not bundled; Þaínted or stained wood; automotivebatteries; used motor oil; pesticides; Hazardous Vy'aste; or Infectious Waste. Contractormay reject a single item that weights more than two hundred (200) pounds. Contractormay also reject un-containerized materials, materials that are not bundled, or other itemsthat exceed the Collection abilities as determined by the Contractor and approved by theCity.

Each Customer shall be instructed to place all items to be Collected by Contractor in aserviceable location adjacent to the Premises by 6:00 a.m. on pick-up day to ensureCollection.

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5.5 SERVICE ASSISTANCE PROGRAMIn addition to any other obligation required by State or Fe.beral laws, Contractor shall provide thefollowing special service assistance to qualifying senior and disabled Customerc who requestsuch assistance. Contractor shall Collect Solid Waste, Recyclable Materials, and OrganicMaterials Carts from and return those Carts back to a looation specified by the qualifyingCustomer (e.g. side- or back-yard). Contractor may require an application and/or liability waiverfrom each Customer request¡ng such sen,ice, provided that such application is approved by theCity Contract Manager. At the commencement of this Agreement, Contractor shall immediatelyaccept the applications provided by the City for Customers receiving sErvice assistance prior tothe commencement of this Agreement.

The lollowing qualifìcations may be used to qualify Customers for special assîstance:a. The Customer must be either over sixty two (62) years old or physically disabled; and,

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b. The Customer must have a signed note from a medical doctor documenting theirinability to place their Cafts curbside; and,c. There should be no able-bodied person residing at the Customsr's Premises.

5.6 USED MOTOR OIL AND FILTER COLLECTIONContractor shall provide containers and Collect used motor oil and oil filters once per week fromCustomers who request it if the Customers place the oil in one-gallon translucænt plasticcontainers with screw tops provided by the Contractor. Contractor shatl provide the used motoroil container to a Residential Customer on that Customer's next regular service day at noadditional cost to Customer. Generators shall be instructed to place the used oil and filtersadjacent to its Recyclables Cart. Upon Collection of used motor oil from a Generator,Contractor shall leave a clean, empty; usable motor oil container adjacent to the RecyclablesCaÍ. Contractor shall not be required to Collect more than two gallons of used motor oil perCustomer per week.

Contactor shall provide containers and Collect used motor oil filters once per week in plasticdisposable resealable zipper bags which are at least six (6) Mil thick (0.006 inches ttrictr¡.Contractor shall provide the used oil filter zipper bags to Customers upon request on thatCustomer's next regular service day, at no additional cost. Generators shall be instructed toplace the used oil filter in the Recycling Cart or adjacent to the Recycling C¿rrt at theContractor's prefercnce.

The Cify shall cooperate with Contractor to secure grant funds through CalRecycle's "Used OilPayment Program" to provide for the used oil and filter collection containers, resealable zipperbags, and education for the used oil program. Contractor shall be responsible for preparing'ányrequired grant application(s) and interacting with the grant administrators, as appropriate. In theevent that CalRecycle terminates or modifies the Used Oil Payment Program in such a way tharsignificantly reduces or eliminates these funds, the City and Contractor shall meet and conferregarding the most appropriate response to the reduction in funds. In the event that Contractorfaíls to meet grant application requirements or deadlines, Contractor shall not be relieved of theirobligations to provide this service.

5.7 ON-CALL ELECTRONIC WASTE COLLECTIONContractor shall Collect Electronic Waste from Custorners, upon request. Electronic wastescollected unde¡ this program shall include, at a minimum: televisions, portable electronicdevices, computer monitors, computers, and computer peripherals. Contractor shall establish anon-line and telephonic request systern whereby Customers may request Collection of ElectronicV/aste on their next regularly scheduled service day. Contractor shall work to maximize theRecycling of Electronic Wastes Collected under this Agreement and in all cases shall complywith Applicable Laws regarding the handling and disposal of these materials.

5.8 ON.CALL TEXTILE RECYCLING COLLECTIONContractor shall provide containers and Collect textiles from Customers, upon request. Textilescollected under this program shall include, at a minimum: used clothing and shoes. Contractor

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shall establish an on-line and telephonic request system whereby Customers may requestCollection of textiles on their next regularly scheduled service day. Upon receipt of theCustomer's request, Conffactor shall distribute a textile recycling bag to the Customer.Customers shall be insffucted regarding the preparation of textiles for recycling and placement ofthe textile recycling bag for Collection by the Contractor. Contractor.may implement thisprogram on a pilot basis for a subset of Customers during calendar year 2013. StaÍting onJanuary 1,2014, contractor shall make this program available to all customers.

ARTICLE 6.PROCESSING AI\D DISPOSAL

RECYCLABLE MATER]ALS PROCESSING

Processing. Contractor has seleoted the Approved Recyclable Materials Processing Siteand secured sufÏicient capacity there to Process Recyclable Materials Collected under thisAgreement. Contractor shall provide the City Contract Manager, upon request, withdocumentation demonstrating availability of such capacity. Contractor shall pay all costsassociated with Transporting Recyclable Materials to the Aþproved Recyclable MaterialsProcessing Site as well as any Processing costs.

Contractor agrees to Transport and deliver all Recyclable Materials it Collects in the Cityto the Approved Recyclable Materials Processing Site. Residue from the RecyclableMaterials shall be Disposed of by Contrâctor at the Designated Disposal Site or aDisposal Site selected by Contractor, Notwithstanding any öther contract or agreementbetween Contractor and City, Contractor shall pay all costs associated with disposal ofresidue from the Recyclable Materials it Collects.

Contractor, or its Subcontractor, shall cause the Approved Recyclable MaterialsProcessing Site(s) to be in full regulatory complianöe at all times, including but notlimited to compliance with all required per,nits. Contractor shall provide copies ofnotices of violation or permit modifications to the City Contract Manager within five (5)Business Days of receipt.

If Contractor elects to use a Processing Site that is different from the ApprovedRecyclable Materials Processing Site, it shall secure prior written approval from the CityContract Manager, which approval must be obtained at least ninety (90) days prior to useof such site(s) and will not be unreasonably withheld by the City. The City shall notcompensate the Contractor for any Transfer/Transportation and ,Processing costsassociated with the use of Processing Site(s) different than the Approved RecyclableMaterials Processing Site(s). In the event that Contractor elects to use a new ProcessingSite, Contractor shall be obligated to compensate the City for any lost revenues resultingfrom said election including, but not necessarily limited to, per ton payments from theContractor or Approved Recyclable Materials Processing Site for the RecyclableMaterials delivered there and/or increases in tipping fees resulting from the reduction inthe volurne of rñaterial handled at such facility.

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B. Transfer. If Contractor uses a Transfer Station for Recyclable Materials, Contractorshall select the Transfer Station and secure sufficient capacity to transfer RecyclableMaterials Collected under this Agreement. Contractor shall provide the City ContractManager, upon r€quest, with documentation demonstrating availability of such capacity.All costs associated with TranspoÉing Recyclable Materials to the Transfer Staiion aswell as any transfer costs including any governmental fees shall be paid by Contractor.Contractor shall not use any Transfer Station unless it has first obtained written approvalof the Transfer Station from the City Contract Manager at least five (5) days prior to useof the Transfer Station. Said approval shall not be unreasonably withheld by the City.

If the Contractor (i) Transpotts Recyclable Materials to a Transfer Station where themateiials will be unloaded from Collection vehicles and loaded into large-capacityvehicles and Transported to the Processing Site(s), or (ii) pulls two or more Collectiontrailers in tandem with one (1) truck, and the Contractor is unable to do so, then theContractor shall be responsible for making other Transportation anangements. In suchevent, Contractor shall not be compensated for any additional costs. If the Contractorþlans to change its transfer method, Contractor shall obtain written approval from theCity Contract Manager prior to making the change. The City Contract Manager'sapproval shall authorize the transfer method and the facility(ies) Contractor proposes touse.

Marketing. The Contractor or Subcontractor shall be responsible for the marketing ofRecyclable Materials it Collects in the CiÇ. Contractor shall prepare RecyclableMaterials for market or develop end uses for materials that maximize diversion creditsaccording to the regulations established by the Act. Contractor shall not use anyRecyclable Materials for the purposes of ADC or any other on-site landfill utilization orfor transformation fuel, unless prior written approval is obtained from the City ContractManager.

Contractor shall prepare and maintain a City Contract Manager-approved marketing planfor all Recyclable Materiais it Collects in the City. The plan shall be in place on orbefore the Commencement Date of this Agreement. The marketing plan shall fullydescribe the Contractor's marketing methods and approach, targeted primary andconl¡ngent markets (noting use of domestic versus export markets), pricing policy andassumed salvage value for Recyclable Materials products, and contingency plans ifmarket conditions are severe.

Contractor shall provide proof to the City Contract Manager that all Recyclabte MaterialsCollected are marketed for use in such a manner that materials shall be considered asdiverted in accordance with the State regulations established by the Act. All residualmaterial from the Processing activities that is not marketed for use shall be accounted foras Disposal Tonnage at a permitted Disposal Site.

Disposal of Recyclable Materials Prohibited. Recyclable Materials may not beDisposed of in lieu of Processing and Marketing the material, without the prior written

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approval of the City Contract Managêr. If Contractor believes that it cannot divert theRecyclable Materials from Disposal, then it shall prepare a written request for approval toDispose of such material. Such request shall contain the basis for its belief, describe theContractor's efforts to arrange for the diversion from Disposal of such material, theperiod required for such Disposal, the incremsntal costs or cost savings resulting fromsuch Disposal, and any additional information suppohing the Contractor's reques[. fn"City Contract Manager shall consider the Contractor's request and inform Contractor inwriting of its decision within thirty (30) calendar days of receipt of the Contractor'srequest.

City Right to Select Processing Site. The City reserves the right to direct Contractor toRecyclable Materials Processing Site(s) other than that selected by Contractor in theevent that the Contractor and/or the Approved Recyclable Materials Processing Site is notoperaling in accordance with this Agreement and/or Applicable Law. City ContractManager shall provide written notice to Contractor not less than ninety (90) days beforeeffective date of the change and Contractor shall have ninety (90) days following suchnotice to either brÌng the Apfroved Recyclable Materials Processing Site into compliancewith the reguirements of this Agreement and/or Applicable Law. Should the Contractorbe unsuccessful in their attempts to do so, only then will the Contractor be required to usethe City-selected Processing Site(s).

ORGANIC MATERIALS PROCESSING

Processing. Contractor shall select Processing Site(s) and secure sufficient capacity toProcess Organic Materials Collected under this Agreement. Contractor shall provide theCity.Contract Manager, upon request, with documentation demonstrating availability ofsuch capacity. Contractor shall pay all .costs associated with Transporting OrganicMaterials to the Processing Sites as well as any Processing costs. The Processing Siteselected by Contractor shall be approved in writing by the City Contract Manager at leastninety (90) days prior to use of such site.

Contractor agrees to Transport and deliver all Souroe Separated Organic Materials itCollects in the City to the Approved Processing Site. Residue from the OrganicMaterials shall be Disposed of by Contractor at the Designated Disposal Site o¡ aDisposal Site selected by the Approved Organic Materials Processing Site.

Contractor, or its Subcontractor, shall cause the Approved Processing Site to be in fullregulatory compliance at all times, including but not limited to compliance with allrequired permits. Contractor shall provide copies of notices of violation or permitmodifications to the City Contract Manager within five (5) Business .Days of receipt.

If Contractor elects to use a Processing Site that is different from the ApprovedProcessing Site agreed-upon at the Execution Date, it shall secure prior written approvalfrom the City Contract Manager and such approval will not be unreasonably withheld.The City shall not compensate the Contractor for any Transfer/Transportation and

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Processing costs associated with the use of a Processing Site different from the ApprovedProcessing Site.

Transfer, If Contractor uses a Transfer Station for Organic Materials, Contractor shallselect the Transfer Station and secure suflicient capacity to transfer Organic MaterialsCollected under this Agreement. Contractor shall provide the City Contract Manager,upon request, with documentation demonstrating availability of such capacity. Al! costsassociated with TranspoÍing Organic Materials to the Transfer Station as well as anytransfer costs shall be paid by Contractor. Contractor agrees to use Approved TransferStation and such site approval shall be obtained fiom the City Contract Manager at leastfive (5) days prior to use of such site.

If the Contractor (i) Transports Organic Materials to a Transfer Station where thematerials will be unloaded from Collection vehicles and loaded into large-capaoityvehicles and Transported to the Processing Site(s), or (ii) pulls two or more Collectiontrailers in tandem with one (l) truck, and the Contractor is unable to do so, then theContractor shall be responsible for making other Transportation arrangements. ln suchevent, Contractor shall not be compensated for any additional costs. If the Contractorptans to change its transfer rnethod, Contractor shall obtain ,written approval from theC:ity Contract Manager prior to making the change. The city conhact Manager'sapproval shall authorize the transfer rnethod and the faoiliry(ies) Contractor proposes touse.

Marketing, The Contractor or Subcontractor shall be responsible for the marketing ofOrganic Materials it Collects in the City. Contractor shall make end products (Compostor mulch) or develop end uses for materials that maximize diversion credits according tothe regulations established by the Act. Contractor shall not use any Organic Materials forthe purposes of ADC or any other on-site landfill utilization ot for transformation fuel,unless prior written approval is obtained from the City Contract Manager.

Contractor shall prepare and maintain a City Contract Manager-approved marketing planfor all Organic Materials ¡t Collects in the City. The plan shall be in place on or before.the Commencement Date of this Agreement. The marketing plan shall fully describe theContractor's marketing methods and approach, targeted primary and contingent markets,pricing policy and assumed salvage value for Organic Materials products, andcont¡ngency plans if market conditions are severe.

Contractor shall provide proof to the City Contract Manager that all Organic MaterialsCollected is marketed for use in sr¡ch a manner that materials shall be considered asdivefted in accordance with the State regulations established by the Act. All residualmaterial from the Processing activities that is not marketed for use shall be accounted foras Disposal Tonnage at a permitted .Disposal Site. No Organic Materiâls shall betransported to a domestic or foreign location if Disposal of such material is its intendeduse,

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Disposal of Organic Materials Prohibited. Source Separated Organic Materials maynot be Disposed of in lieu of Composting the material, without the expressed wrinenapproval of the City Contract Manager. If Contractor believes that it cannot divert theOrganic Materials from Disposal, then it shall prepare a written request for approval toDispose of such material. Such request shall contain the basis for its belie[, describe theContractor's efforts to arrange for the diversion from Disposal of such material, theperiod required for such Disposal, the incremental costs or cost savings resulting fromsuch Disposal, and any additional.information supporting the Contractoy's request. TheCity Contract Manager shall consider the Contractor's request and inform Contractor inwriting of its decision within th¡rty (30) cale,ndar days. If the City Contract Managerapprov€s such request and the difference in the cost of such Disposal compared to thediversion is greater than ten thousand dollars ($10,000) per yçar, then the Contractor'sCompensation shall be adjusted in accordance with Section 11.6.

City Right to Select Processing Site. The City reserves the right to direct Contractor toProcessing Site(s) other than that selected by Contractor. In such case, the Contractorshall be released from its indemnification obligation in Section l2.l as it relates toactions or negligence of the Owner and operator of the City-Selected Processing Site(s),and the City shall adjust Contractor's Compensation in accordance with procedures for a

City-directed change in scope in accordance with Section 4.5. City Contract Managershall provide wrilten notice to Contractor not less than ninety (90) days before effectivedate ofthe change.

24 6.3 SOLID WASTE DISPOSAL25 Contractor shall Transport to and Dispose of atl Solid Waste Collected in the City at the26 Designated Disposal Location. Contractor shall pay all costs associated with the27 Transfer/Transport and Disposing of Solid Waste. Contractor shall maintain accurate records of28 the quantities of Solid Waste Transported to the Designated Disposal Location and will?9 cooperate with the City Contract Manager in any audits or investigation of such quantities or30 their composition. The Parties acknowledge that the Designated Disposal Location is3l responsible for delivering all Solid ìWaste which remains after Processing at the Designated32 Disposal Location to the Designated Landfill Site, pursuant to the Services Agreement between33 Orange Avenue Disposal Company, lnc. and the City dated Febru ary 25,2004.3435 Contractor shall-cooperate with the operator of the Designated Disposal Location with regard to36 operations therein, including for example, complying with dircctions from the operator to unload37 Collection vehioles in designated areas, accommodating to maintenance and operations and38 construction of ne-w facilities, cooperating with Hazardous Waste exclusion and load checking39 programs, and so fonh.404l Once the City's curent contract with the Designated Landfill Site expires, the City may either42 designate a facility it has arranged or it may approve a facility that the Contractoi has arranged,43 ln either case, Contractor's Compensation shall be adjusted in accordance with Sections 4.5 and44 11.6. ForthepurposesofadjustingcostsrelatedtoCollectionvehiclesdrivingtoandfromthe45 Designated Disposal Location, the incremental change in mileage between the Designated

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Disposal l,ocation and the new site shall be measured from the City's geographic centroid at fheintersèction of Ashlan Avenue and Blackstone Avenue,

Contractor may Dispose of residue from Organic Materials at any Disposal Site selected by theContractor.

In the event the Contractor ananges for an alternative Disposal Site, any Disposal Site used byContractor must be designed and constructed in accordance with 23 Califgmia Code ofRegulations Section 2510 et seq. ("Subchapter.l5"). Contractor shall. ensure that any suchlandfÏll (other than the Designated Disposal Location) has been issued all permits from federal,statei regional, county and municipal agencies necessary for it to operate as a Class III SanitaryLandfill and is in full compliance with those permits at all times. Contractor shall provide copiesof notices of violation or permit modifications to the City Contract Manager within fìve (5)Business Days of receipt.

ARTICLE 7.OTHER SERVICES

1.I PUBLIC EDUCATIONContractor shall work with Customers to improve the Recyclable Materials and OrganicMaterials Collection progri¡ms. Contractor shall make diligent effofs including, but not limitedto, all plans described in Contractor's Proposal to increase the amount of Recyclable Materialsand Organic Materials Collection services provided to Customers.

In conjunction with the City, Contractor shall develop, implement, and maintain a publiceducation program to educate the community and promote source reduction, reuse, Recycling,Composting, and other services required by this Agreemenl. Contractor's public educationprogram shall at a minimum provide information to Customers in accordance with the specifïcrequirements described in Exhibit F. Educational media shall include, bur not be limited, to,newsletters, bill inserts, flyers, door hangers, notification tags, and direct contact. Informationshall be provided for initial start of new services, to solicit feedback about the service andsuggested improvemenlchange, and to educate Customers about source reiluction, reuse, ändRecycling opportunities. Materials shall be printed on paper containing the highest levels ofrecycled content material as is reasonably practical with a minimum requirement of thirtypercent (30o/o) post-consumer content.

All publiô education materials required in this Section and Exhibit F shall be printed in English,Spanish, Hmong, and any other language(s) requested by the City Contract Manager, providedthat such languages are used in City-produced public education and outreach materials.

Contractor shall obtain the City Contract Manager's approval of all public education materialsprior to printing, distribution, advertising, posting, or mailing. The City Contract Manager may,in his/her sole discretion, provide Contractor with educational media developed to create aconsistent message throughout the City. Contractor shall be responsible for all reproduction anddistribution costs associated with materials provided by city conrract Manager.

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If Contractor fails to perform some or all of the requirements of the public education programdescribed in this Section ànd in Exhibit F, the Contractor shall pay the City Liquidated llarigrtas described in Section 13,5 and Exhibit G.

During the Term of the Agreement, the Contractor shall employno less than one (1) full+imepublic education coordinator dedicated to implementing its public education program. Thisposition may be filled by Contractor's personnel or personnel from a Subcontractor. The CityContract Manager shall be notified of the public education coordinator's name and contactinformation two (2) months prior to the Commencement Date. The public education coordinatorshall not be responsible for outreach or technical assistance to Multi-Family and CommcrcialCustomers or to Conhactor's customers outside ofthe Citv.

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BILLINGGeneral. Contractor shall bill all Customers and collect Billings in accordance with thisSection 7.2.

The Contractor shall prepare, distribute, and collect bills (or shall issue written receiptsfor cash payments) for Collection services provided by Contractor. Bills for service shallbe mailed to Customers monthly following provision of service. The City shall have theright to review, and approve the Billing format.

Contractor shall arrange to allow its Customers to pay bills through the following means:check; cash; credit card;internet payment service; or, automatic withdrawal from bankingaccount.

Contractor shall maintain electronic copies of all Billings and receipts, each inchronological order, for three (3) years for inspection and verification by City, itsemployees, officers or agents at any reasonable time upon request. The Contractor may,at its option, maintain those records in computer form, on microfìche, or in any othermanner, provided that the records can be preserved and easily retrieved for inspection andverification in a timely manner,

Contractor shall be responsible for collection of payment from Customers with past dueaccounts ("bad debt"). Contractor shall make reasonable efforts to obtain payment fromdelinquent accounts through issuance of late payment notices, telephone requests forpayments, and assistance from collection agencies. This parties to this Agreement haveassumed, based on the C ity's prior experience, a bad debt level of | .25yo of gross annualbillings; in the event that level exceeds 1.25o/o for any Rate Period, then the parties shallmeet and confer to evaluate strategies, which may include, but are not necessarily limitedto, amending this Agreement or adjusting the Contractor's rates, to address the problem.

Bills are due on the last day of the period for which services are provided under that bill.In the event that any account becomes more than forty-five (45) days past due, Contractorshall notifo such Customer of the delinquency via written correspondence and telephonecontact. Should any account become more than ninety (90) days past due, Contractor

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shall provide notice to the Customer via written correspondence, with a copy to the CityContract Manager, that service may be discontinued if the account becomes more than120 days past due. Should any account become more than one hundred twenty (120) dayspast due, Contractor may discontinue providing service to the Customer including, at lhesole option of the Contractor, removing the Cart from the Customer's service location. Inthe event that Contractor removes a Cart from the Customer's service location,Contractor may charge the Customer a carl replacement fee, in accordance with theMaximum Permissible Rates established by this Agreement. No less than three (3)Business Days prior to discontinuing service to a Customer, Contractor shall notiff theCity Contract Manager of the address, service level, service frequency, and delinquentbilling amount. Contractor may withhold service from a delinquent account until pastdelinquencies are paid in fult. Upon restoring service to a previously delinquent account,Contractor may require a deposit from the Customer not to exceed one (l) month'sbillings at the Customer's service level.

Billing shall be performed on thê basis of services rendered and this Agreement shallcreate no obligation on the part of any Person on the sole basis of the ownership ofproperty. Nothing in this Section 7.2 shall be interpreted in such a \¡/ay that would allowContractor to bill for, or require an Owner to pay for, services without regard to the useof those seruices or the occupancy of the Owner's Premises.

Contractor may request, subject to the approval of the City Contract Manager, a changein the timing of billings (e.g., changing from monthly to quaferly).

Bill Inserts. City Contract Manager may direct Contractor to produce and insert mailers(which shall be a single sheet of paper no larger than eight and one half inches by eleveninches (8.5" x ll") relating to service with the bills. The mailers shall be printed ondouble-sided, post-consumer-content paper and shall fit in standard envelopes.Contractor also agrees to insert with the Billings, mailers describing activities of the Cìtygovemment. C¡ty Contract Manager will provide not less than th¡rfy (30) calendar days'notice to Contractor before the mailing date of any proposed mailing to permit Contractorto make appropriate arangements for inclusion of the City's materials. City ContraòtManager will provide Contractor the mailers at least fifteen (15) calendar days before themailing date, The cost of such inserts and any additional postage shall either be paid forby the City or included in the costs upon which Rates are based.

Review of Billings. Contractor shall review ¡ts Billings to Customers to determine (i) ifthe amount the Contractor is Billing each Customer is correct in terms of the level ofservice (i.e.. frequency of Collection, size of Cart, location of Cart) Contractor isproviding such Customer, and (ii) that all parties receiving service are invoiced forservice. Contractor shall revíew all Customer accounts at least every other year, unlessCity Contract Manager directs Contraotor to do otherwise. Contractor shall submit toCity Contract Manager every year, a written report of the billing réview thirty (30) daysafterthe end of each Rate Period. The scope of the review, the Contractor's work plan,and the format of the report (including suppoting exhibits) shall be submiued to the CityContract Manager for approval no later than sixty (60) days prior to commencement of

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the Billing review process. The City may perform this review itself or through use of anagent. Should City or its agent perform this review and identift billing errors valued atone.percent (l%) or more of annual Gross Receipts, Contractor shall, in addition tocompensating City for lost fees, reimburse the city's cost of the review, up to onehundred thousand dollars ($100,000) in the Ciry.

Senior Discount Program. Contractor shall administer a senior discount program. The"Senior Citizen Rates" listed in CiÇ-approved Maximum Permissible Rate schedule shallbe the Maximum Permissible Rates for Customers qualífiing for this program. Prior toenrolling any Cuslomer in this program, Contractor may require documentation from theCustomer that they are ov€r sixty two (ó2) years old and meet California Public Ut¡l¡t¡esCommission poverty level guidelines.

CUSTOMER SERVICE PROGRAM

Program Requirements

Availability of Representatives. A representative of the Contractor shall be availablefrom I a.m. to 5 p.rn. lvfonday through Friday to communicate with the public in personand by telephone. A message machine or voicemail service shatl be available forCustomers to leave messages during non-business hours. Calls received during non-business hours shall be retumed no later than noon of the following Business Day.Contractor shall also malnlain an after-hours telephone number allowing 24-hour per dayaccess to Contractor management by City in the event of an emergency involvingContractor's equipment or services including, but not necessarily limited to, fires,blocked access, or property damage.

Telephone. Contractor shall maintain a telephone system in operation at its offìce from 7a.m. to 6 p.m. and shall have staff available to answer calls. Contractor shall installtelephone equipment sufficient to handle the volume of calls experienced on the busiestdays and such telephone equipment shall be capable of recording the responsiveness tocalls. Recording of Contractor's responsiveness to calls shall include, at a minimum, allitems'included in the Customer service standards listed in Exhibit G and LiquidatedDamages identlfied in Seciion 13.5 and Exhibit G. If Persons are unable with reasonableeffort to reach Contractor's office by phone, or are subject to waiting time "on hold" ofmore than three (3) minutes prior to reaching a Customer service representative, CityContract Manager may require that Contractor install additional telephone lines or hireadditional Customer service representatives. An answering machine or voicemail serviceshall record Customer calls and voice messages between 5:00 p.m. and 8:00 a.m.Liquidated Damages may be levied for Contractor's failure to meet Ct¡stomer Èervicestandards provided in Exhibit G in accordance with Section 13.5.

Web Site. Contractor shall develop and maintain a web site that is accessible by thepublic and that describes services provided in the City . The site shall include answers tofrequently asked questions, service Rátes, Recyclable Materials and Organic Materialsprogram specifications, and other related topics. Contractor's web site shall provide the

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I public the ability to e-mail Contractor questions, service requests, or Comptaints.2 Contractor's web site shall provide the Customers with the ability to'pay their bills3 through an electronic check or credit card and include the ability for Customer Billings to4 be automatically charged to payment mechanism on a recurring basis.5

ó D' Customer Satisfaction Survey. The City may conduct a Customer satisfaction survey' 7 as frequently as once each year.I9 E. Training. Customer service representatives shall receive training during each quarter ofl0 the calendar year on City-specific service requirements. During the training, a City-I I specific Collection service and fee infonnation sheet, training agenda, and associated12 documentation shall be provided to employees. A copy of all training materials and sign-13 in sheet documenting all employees attending the training shall be prilvided to the City14 Conhact Manager within five (5) Business Days of each training event.l516 F. Local Office. Throughout the Term of this Agreement Contractor shall maintain a locall'7 ofÏice within a fwenty-five (25) mile radius of City Hall that may be located in either thel8 City or County of Fresno, where all Customer service personnel and operations shall bel9 housed for Customers served under this Agreement.2021 7.3.2 Service Complaints22 Contractor shall be responsible for the prompt and courteous attention to, and prompt and23 reasonable resolution o$ all Complainls. Contractor shall record in a separate log, approved as24 to form in writing by City Contract Manager, all Complaints, noting the name and address of25 complainant, date and time of Complaint, nature of Complaint, and nature and date of resolution.26 The Contractor shall retain this Complaint log for the Term. In addition, Contractor shall27 compile a summary statistical table of the Complaint log, satisfactory to the City Conhac{28 Manager, and submit the table to City Contract Manager each month.2930 Contractor shall respond to all Complaints received within twenty-four (24) hours, weekends and3l Holidays excluded. ln particular, if a Complaint involves a failure to Collect Solid V/aste,32 Recyclable Materials or Organic Materials from a Premises in the City, Contractor shall Collect33 the material in question within twenty-four (24) hours of receipt of the Complaint, provided that34 Generator has properly placed materials for Collection in accordance with the City's Municipal35 Code. Liquidated Damages may be levied for Contractor's failure to meet the service Complaint36 standard and additional Customer service standards provided in Exhibit G in accordance with37 Section 13.5.38

7.4 PROVISION OF EMERGENCY SERVICESContractor shall provide emergency services at the City Contract Manager's request in the eventof major accidents, disruptions, or natural calamities. Emergency services may include, but arenot limited to, assistance handling salvaged materials, Processing, Composting, or Recyclingmaterials, or Disposing of Solid rùaste following a major accidçnt, disruption, or naturalcalamity. Contractor shall be capable of providing emergency services within twenty-four (24)hours of notification by the City Contract Manager or as soon thereafter as is reasonablypractical in light of the circumstances. Emergency services, which exceed lhe Contractor's

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obligations, shall be compensated in âccordance with Section I 1.6. If Contractor çannot providethe requested emergency selices, the City shall have the right to take possession of theContractor's equipment for the purposes of providing emergency services.

ARTICLE 8.STANDARDS AND REQUIREMENTSFOR SERVICES, EQUIPMENT, AI\D

PERSONNEL

COLLECTION IIOURS AND SCHEDIJLES

Hours of Collection, Collection shall only occur between the hours of 6:00 a.m. and6:00 p.m., Monday through Friday. The City Contract Manager may requiremodifications to hours for Collection to resolve noise Complaints, and, in such case, theCity Contract Manager may change the allowable Collection hours.

Collection Route Schedules. Contractor shall provide City Contract Manager with routemaps and daily Collection schedules. Such maps and schedules shall be reviewed andapproved by the City Contract Manager. Conlractor shall not permit any Customer'sservice to lapse more than seven (7) .calendars days during a Collection schedule change.

Iloliday Collection Schedule. Contraötor, at its sole discretion, may choose not toprovide Collection services on a Holiday. ln such event, Contractor shall provideCollection services on the day following the Holiday- The Contractor shall provideCustomers notice of Holiday-related changes in Collection schedules at least'two weeksprior to the change.

Contingency Plan. Càntractor shall submit to City Contract Manager, on or before theCommencement Date, a written contingency plan demonstrating Contractor'sarangements to provide vehicles and personnel and to maintain uninterrupted serviceduring mechanical breakdowns, antl in case of natural disaster or other emergencies.

COLLECTION STANDARDS

8.2.1 Implementation of ServicesThe Contractor's implementation of the new services required under this Agreement shall occurin a smooth and seamless manner so that Customers and/or Generators do not experiencedisruption in Collecticin services. Contractor shall be responsible for managing implementationof new Collection services and other related services and shall do so in accordance w¡th the.implementation plan in Exhibit D.

8.2.2 Servicing CartsContractor shall pick up and retum each Cart to the location where the Generator properly placedthe CaÉ for Collection. Contractor shall place the Carts upright with lids properly secured or

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closed. The City may levy Liquidated Damages for repeat occunences of Cart misplacement inaccordance with Section 13.5 of this Agreement.

Conhactor shall use due care when handling Carts. Carts shall not be thrown from rrucks,roughly handled, damaged, or, broken.

Conhactor shall Collect Carts from a disabled Customer's side- or back-yard at no additionalcharge to the Customer. Customers may be required by Contractor to demonstrate their disabledstatus with a doctor's note indicating the reasons that such Customer is unable to place their ownCarl at the curb and return it each week.

8.2.3 Weighing Materials Separately froin Other JurisdictionSolid Waste, Recyclable Materials, and Organic Materials Collected in the City shall not bemixed with other materials collected frorñ other jurisdictions before the maierial generatedwithin the City has been accurately weighed and recorded.

8.2,4 Instructions to CustomerContractor shall'instruct Customers as to any requirements for the proper separation of materialsor placement of Carts for Solid Waste, Recyclable Materials, and Organic Materials. tfCustomers are not adhering to Contractor's instructions, Contractor shatl notiff such Customers.In cases of extreme or repeated failure to comply with the instructions, Contractor may decline topick-up the Solid Waste, Recyclable Materials, or Organic Materials provided that Contractorleaves a tag at least fwo inches by six inches (2" x 6") in size attached to the Cart indicating thereason for refusing to Collect the rnaterial and identifoing the steps Customer and/or Generatormust lake to recommence Collection service. If Recyclable Materials or Organic Materials setout for Collection contain tlventy-five percent (25Vù or five percent (5%), respectively, orgreâter by volume of Solid Waste, Contractor shall Collect materials and leave a waming noticefor the Customer. Contractor shall report to the City Contract Manager any waming noticesissued to Customers within one (1) Business Day of issuance. Contractor shall proviàe directperson-to-person education and outreach to Custom€rs with repeated contamination notices.

8.2.5 OveragesContractor shall dírect its employees not to Collect Solid Waste beyond each Customer,ssubscription level of service unless the business ofiìce of Coñtractor has granted priorauthorization to make such Collection.

8.2.6 Care of Private PropertyContractor shall not damage private or City-owned property. Contractor shall ensure that itsemployees: (i) olose all gates opened in making Collections, unless otherwise directed by theGenerator; (ii) do not cross landscaped areas; (iii) do not climb or jump over hedges and fences;and, (iv) check for and avoid obstructions or impediments including, but not limited to, lighting,plumbing, wiring, or signage prior to operating Collection equipment.

Ciry shatl refer Complaints about private property damage to Contractor. Cònractor shall repairall damage to private or City-owned property caused by its employees, In the event of repeat

3B

I occurrences of property damage, the Contractor shall pay Liquidated Damages in accordance2 with Section 13.5.3

4 8.2.7 Litter Abatement5

6 A. Minimization of Spills. Contractor shall use due care to prevent Solid Waste,7 Recyclable Materials, Organic Materials, vehicle oil, and vehicle fuel fiom being spilledI or scattered during the Collection or Transportation process. lf any materials are spilled9 or scattered during Collection, the Contractor shall promptly clean-up all spilled andl0 scattered materials.ltl2 Contractor shall not transfer loads from one (l) vehicle to another on any public street,13 unless it is necessary to do so because of mechanical failure, hot load (combustion of14 material in the truck), accidental damage to a vehicle, or unless approved by the City15 Contract Manager.t6l7 B. Clean-Up. During Collection, the Contractor shall clean-up litter in the immediatel8 vicinity of any Cart storage area (including the areas where Carts are delivered for19 Collection) whether or ncit Contractor has caused the litter. Each Collection vehicle shatl20 carry protective gloves, a broom, and shovel at all times for the purpose of cleaning up2l litter. Cat-litter or similar absorbent material shall be used by Contractor for cleaning up22 liquid spills. The Contractor shall discuss instances of repeated spillage not caused by it23 with the Customer of the Premise where spillage occurs, and Contractor shall report such24 instances to City Contract Manager.2526 8.2.8 Noise27 All Collection operations shall be conducted as quietly as possible and shall conform to28 applicable Federal, State, county, and City noise level regulations. All such vehicles shall29 comply with U.S. Environmental Protection Agency (EPA) noise emission regulations and other30 applicable noise control regulations. Any vehicle that does not comply with noise level3l requirements shall be prohibited fronr performing services under this Agreement.3233 Contractor will promptly resolve any Complaints of noise durÍng the morning or evening hours34 of the day to the sat¡sfaction-of the City Contract Manager. ln the event of repeat occurrences of35 noise levels in excess of fifty (50) decibels, the. Contractor shall pay Liquidated Damages in36 accordance with Section l'3.5.37

38 8.3 VEHTCLE REQUTREMENTS

8.3.1 GeneralOn the Commencement Date of this Agreement, Contractor shall take possession of.Collectionvehicles previously owned by the City and Contractor shall pay the City the sales price specifiedin Exhibit L. Prior to Contractor taking possession of the Collection Vehicles, City shall ensur€that each vehicle is in such a condition that it would pass Califomia Highway Patrol BITinspection criteria, Contractor shall be responsible for paying all taxes and fees associated withthe transferof ownership of the Collection Vehicles. Although the Contractor is required to take

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ownership of and possession of thé Collection vehicles previously owned by the City, theContractor is not obligated to use such Collection vehicles to provlde the Collection seruicesrequired by this Agreement. The Contractor may sell the Collection vehicles previously ownedby the City or use such vehicles to provide seivices in the City or other jurisdictions. IfCollection vehicles previously owned by the City are to be used in the City to provide servicesunder this Agreement, all City-specific paint schemes, logos, phone numbers, advertising, orother identification shall be removed from the vehicles within one hundred eighty (180) days ofthe Commencement Date. If Collection vehicles previously owned by the City are to be sold ortransferred to operations in another jurisdiction, all City-specific paint schemes, logos, phone'numbers, advertising, or other identification shall be rernoved from the vehicles prior to sale ortransfer.

At all times during the Term of the Agreemen! Contractor shall provide a fleet of Collectionvehicles sufficient in number and capacity to efficiently perform the work required by theAgreement in strict accordance with its terms. Contractor shall have available suffìcient back-upvehicles for each type of Collection vehicle used to respond to Complaints and emergencies.Vehicles shall be owned or leased by Contractor.

8.3.2 SpecificationsAll vehicles used by Contractor in providing Collection seruices shall be registered with theCalifornia Department of Motor Vehicles. All such vehicles shall have watertight bodiesdesigned to prevent leakage, spillage or overflow.

As required by law, Contractor shall comply with State and Federal regulations including, butnot limited to: (i) the California Air Resources Board Heavy Duty Engine Standards, containedin CCR Title 13, Section 2020 et seq; and, (ii) the Federal Environmental Protection Aþency'sHighway Diesel Fuel Sulfur regulations (Section 209(b) of the Clean Air Act! as amended, 42U.S.C. 7543(b)). In addition, Contractor shall comply with all San Joaquin Valley Air PollutionControl District, State, and Federal regulations related to emissions conlrols using engines,vehicles, and/or control technologies that meet or exceed the 201 I or later model year vehicleand engine requirements. lf Contractor needs to conveft, retrofif or replace its Collectionvehicles to be in full compliance with local, State and Federal clean air requirements (includingcompliance with requirements for 201I or later model year vehicles) in effect on theCommencement Date of the Agreement, the costs for such . changes shall be the soleresponsibility of the Contractor and shall not be reimbursed through a change in Contractor'sCompensation or Rates. To the extent that clean air requirements become more or less stiingentaffer the Commencement Date of the Agreement, Contractor Compensation or Rates may beadjusted upward or downward as specified in Section I 1.5.

8.3.3 Vehicle IdentificationContractor's name, local telephone ñumber, and a unique vehicle idehtification number for eachvehicle shall be prominently displayed on all vehicles, in letters and numbers that are a minimumof four inches (4") high. Contractor shall not place the City's logo on its vehicles nor shallContractor paint their vehicles in a way that, in the reasonable judgment of the City ContractManager, would cause the public to mistake Contractor's vehicles with those that the City usesfor utility services operations. Should City Contract Manager determine that vehicle paint

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sÕhemes are unacceptable, Contractor shall repaint or cause offending vehicles to be repaintedwithin ten (10) Business Days or be removed ûom service until the City Contract Manager'sconcem is resolved.

8.3.4 fnventoryContractor shall furnish sufticient equipment to provide all service required by this Agreement ina timely fashion. Contractor shall fumish the City Contract Manager a written inventory of allvehicles used in providing service, and shall update the inventory report annually. The inventoryshall list all vehicles by manufacturer, lD number, date of acquisition, type, capacity, decibelrating, average weight of load, and average loaded axle weights.

E.3.5 Cleaning and Maintenance

A. General. Contractor shall maintain all of its properties, facilities, and equipment in asafe, neat, clean and operable condition at all times.

B. Cleaning. Collection vehicles shall be thoroughly washed and thoroughly steam cleanedto present a clean appearance of the exte¡ior and interior compañment of the vehicle.City Contract Managei may inspect vehicles at any time to determine compliance withcleanliness requirements. Contractor shall make vehicles available to City ContractManager for inspection, in the event that City Contract Manager requests such aninspection. Best practices shall be utilized to minimize odor.

C. Maintenance. Conffactor shall inspect each vehicle daily to ensure that all equipment isoperat¡ng properly. Vehicles that are not operating properly shall be taken out ofserviceuntil they are repaired and operate properly. Contractor shall perform all scheduledmaintenance fi:nctions in accordance with the manufacturer's specifications and scheduleor in accordance with California Highway Patrol standards, whichever are more stringent.Contractor shall keep accurate records of all vehicle maintenance, recorded according todate and mileage, the nature of the repair, the signature of a maintenance supervisor thatthe repair has been properly performed. These records shall be made available to the CityContract Manager upon reguest to the extent necessary to perform the inspectionsdescribed in Sections 8.8 and 9.1.3.

Repairs. Contractor shall repair, or arrange for the repair of, all of its vehicles andequipment for which repairs are needed because of accident, breakdown or any othercause so as to ma¡ntain all equipment in a safe and operable condition. Contractor shallkeep accurate records of all vehicle maintenance, recorded according to date and mileage,the nature of the repair, the signature of a maintenance supervisor that the repair has beenproperly performed. Thcse records shall be made available to the City Contract Managerupon reguest to the extent necessary to perform the inspections described in Sections 8.8and 9.1 .3.

Storage. Contractor shall arrange to store atl vehicles and other equipment in safe andsecure location(s) in accordance with City's applicable zoning regulations.

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8.3.6 OpeiationVehicles shall be operated in compliance with the State Vehicle Code, and all applicable safetyand local ordinances. Contractor shall not load vehicles in excess of the manufacturer'srecommendations or limitations imposed by State or local weight restrictions for vehicles androads. Contractor shall have each Collection vehicle weighed as necessary (e.g., after majorrepairs) at the Designated Disposal Location, Transfer Station, Approved Recyclable MaterialsProcessing Site, or Approved Recyclable Materials Processing Site to determine the unloadedweight ("tare weight") of the vehicle. Contractor vèh¡cles shall be pennitted on City streets onlyduring the Collection hours described in Section 8.1.A, subject to reasonable allowances fortravel to and from Contractor's corporation yard.

CART REQUIREMBNTS

$eneral. On the Commencement Date of this Agreement, all'Carts used bythe City toCollect Solid 'Waste, Recycláble Materials, and Organic Materials from ResidentialCustomers shall become property of the Contractor; and the Contractor shall purchasesuch Carts from the City by paying the City the sales price specified in Exhibit L.Contractor shall be responsible for paying all taxes and fees associated with the transferof ownership oî the Carts. The City shall leave such Carts at each Customer's servicelocation for immediate use by Contractor and to minimize disruptions in service toCustomers. Contractor may elect to use the Cafts previously owned by the City or toreplace such Carts. lf Contractor chooses to.replace Carts, the Contractor shall removethe Carts previously owned by the City and reuse or Recycle the Carts. If Contractorchooses to sell or transfer Ca¡ts to another operation, Contractor must remove all City-specifìc identification prior to such sale or transfer.

Contractor shall provide Carts to all Customers at no additional charge as part of itsservices. Carts shall be designed and constructed to be watertight and prevent theleakage of liquids. All Cafts shall meet applicable Federal, State, and local regulationsfor safety and be covered with industry-standard attached lids. The useful life of Cartsshall be equal to or longer than the Term of the Agreement. All Carts shall prominentlydisplay Contractor's name and telephone number.

Cleaning and Maintenance. Contractor shall maintain Cart inventory in a safe,serviceable, and functional condition. Customers using shall be responsible for c.leaningCarts in use on their Premises. lf Contractor is notified by Customer that their Cart isimpacted by graffìti, Contractor shall remedy the situation within forty-eight (48) hours.

Repair and Replacement. Contraotor shall repair or replace all Carts damaged byCollection operations within a one (l) week period. If the repairor replacement cannotbe completed within one (l) week, the Contractor shall notiff Customer and a Cart of thesame size or larger shall be made available until the proper Cart can be replaced.

At no additional cost, Contractor shall replace Customer Cars that have been stolen ordamaged, Contractor shall allow Customer to exchange Carts for a Cart of a differentsize one tirne per year at no additional cost.

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Should Customers request Cart replacement for any additional reason not mentionedherein, Contractor shall makê new or refurbished Carts available to Customer. Contractormay charge Customers for such Cart replacement in accordance with City-approvedMaximum Permissible Rates

Cityts Rights to Carts. Upon expiration or early termination of this Agteement, allCarts acquired by Contractor and put into service at Customer's Premises before the first(lst) anniversary of the Commencement Date shall become property of the City. AllCarts purchased or leased and put into service at Customers' Premìses on or aftèr the first(lst) anniversary of the Commencement Date that have not been fully depreciated shallbe available to the City for purchase, at the City's option, at the Carts' net book yaluebased on a ten (10) year useful life.

At its sole discretion, the City may elect not to exercise its rights, in whole or part, withregard to this Section 8.4.D and, in such case, the Carts shall become the property of theContractor upon the expiration date of this Agreement or date of its earlier termination ofthis Agreement. In such case, Contractor shall be responsible for removing all Carts inservice fiom Premises in accordance with the City-approved plan for transitioningservices from Contractor. Should Contractor fail to remove Carts within three (3)Business Days, City mây assume ownership of them or sell them to a third party whowould remove them from the Premises.

PERSONNEL

General. Contractor shall furnish such qualifred drivers, mechanical, supervisory,Customer service, clerical and other personnel as may be necessary to provide lheservices required by thís Agreement in a safe and efTicient manner.

Hiring of City Employees. Forty-five (45) calendar days prior to the CommencementDate, Contractor shall offer employment to all Ciry employees that filled one hundredfifty nine (159) City Residential solid waste positions. Any City employee offered aposition must pass a physical, which physical shall not exceed the standards set .byContraotor for all its employees in similar positions. Contractor shall have no obligationto hire a City employee that fails the physical. In the Contraclor's written employmentoffer, Contractor shall describe the wages and benefits Contractor will provide such Cityemployees. On or before the Commencement Date, Contractor shall employ the Cityemployees that accepted the Contractor's' employment offer and shall guaranteeemployment of such Persons for a period of twelve (12) months, except that Contractormay terminate any employee for cause, as defined by Contractor in the writtenemployment offer. ln the event that a City ernployee fails a Califomia Department ofMotor Vehicles background check or pre-employment drug and alcohol screening or'thatany employee is terminated for cause, Contractor shall be relieved of the obligation toemploy that specific City employee. ln such a case, Contractor shall be required to extend'an offer of employment to another City employee within that job classification under thesarne terms and condltions set forth above-

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c. Approval of Management. Contractor recognizes the importance of establishing asuccessful relationship between its management and City Contract Manager. Therefore,the Contractor will allow the City Contract Manager the right to approve the setection ofthe Contractor's field representative and the Contractor's responsible officer asdesignated by the Contractor, provided that the City Contract Manager's approval is notunreasonably withheld. The City Contract Manager shall have the right to iequest theContractor to replace the Person that serves as the City's main contact with Contractor(e.9., fìeld representative and the Contractor's responsible offìcer as designated by theContractor pursuant to Section 14.10), if Liquidated Damages levied for events listed inExhibit G, with the exception of damages levied for Collection reliability and Collection

'quality events items l, 3, and I of Exhibit G, in any rhre€- month p"iioo exceed twothousand dollars ($2,000) or if Liquidated Damages levied for Collection reliability andCollection qualityevents items l, 3, and I of Exhibit G in any three-month period exceedforty-five thousand dollars ($45,000). lf replacement of the field representative and theContractor's responsible officer as designated by the Contractor pursuant to Section14.10 is requesttid by the City Contract Manager, the Contractor shall have ninery (90)calendar days to replace the field representative or responsible officer and shall seek theCity Contract Manager's approval of the replacement manager prior to hirihg suchPerson.

Provision of Field Supervision. Contractor shalldesignate at least one (l) qualifìed fulltime equivalent employee forevery fifteen (15) full time equivalentroutes as supervisorof field operations and such Person shall devote ât least seventy percent (70yù of his orher time in the field checking on Collectiori operations, includÍng responding toComplaints.

Driver Qualifications. All drivers shall be trained and qualifred in the operation ofCollection vehicles they operate and must have in effect a valid license, of theappropriate class, issued by the State Department of Motor Vehicles. Contractor shalluse the Class B California .Department of Motor Vehicles employer "Pull NoticeProgram" to monitor its drivers for safety.

Customer Service Representative Training. Customer service representatives shall betrained on specific City servìce requirements, a rninimum of once per quarter. A Cityinformation sheet shall be provided to each Custo¡¡er service repr€sentative for easyreference of City requirements and general Customer needs. The information sheet,training agenda, employee sign-in sheet, and associated documentation shall befo¡warded to the City each quafter after the training.

Safety Training. Contractor shall provide suitable operational and safety training for allof its emptoyees who operate Collection vehicles or equipment or who are otherwisedirectly involved in such Collection. Contractor shall train its employees involved inCollection to identif, and not to collect, Hazardous Waste or Infectious Waste.

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H. No Gratuities. Contractor shall not permit its employees to accept, solicit, or demanddirectly or indirectly, any additional compensation, or gratuity from Customers ormembers of the public for Collection, lf any Contractor employee is found to haveaccepted compensation in exchange for providing services at no charge or for a reducedcharge, such employee shall, at a minimum, be reassigned to a position which preventsthem from providing service directly to Customers.

Employee Conduct and Courtesy. Contractor shall use its best efforts to assure that allemployees present a neat appearance and conduct themselves in a courteous manner.Contractor shall regularly train its employees in Customer courtesy, shall prohibit the useof loud or profane language, and shall instruct Collection employees to perform the workas quietly as possible. If any employee is found not to be couÉeous or not to beperforming services in the manner required by this Agreement, Contractor shall take allappropriate corrective measures. The City Conhact Manager may require Contractor toreassign an employee, if the employee has conducted himself or herself inconsistentlywith the terms of this Agreement.

Uniforms. While performing'services under this Agreement, all of the Contractor'semployees performing field service shall be dressed in clean uniforms that include theemployee's name and/or employee number,.and Contractor's name, as approved by theCity Contract Manager. No portion of this uniform may be removed while working. Noportion ofthe uniform shall contain advertising from the public sector.

EAZARDOUS WASTE INSPECTION AND HANDLING

fnspeclion Program and Training. Contractor shall develop a load inspection programthat includes the following components: (i) Personnel and training; (ii) Load checkingactivities; (iii) Management of wastes; and (iv) Record keeping and emergencyprocedures.

Contractor's load checking personnel, including its Collection vehicle drivers, shall betrained in (i) the effects of Hazardous Substances on human health and the environment;(ii) identification of prohibited materials; and (iii) êmergency notification and responseprocedures. Collection vehicle drivers shall inspect Carts before Collection to identifoand exclude Hazardous Waste from Collection. Contractor shall, at a min¡mum, conductload checks on one percent (l%) of all loads delivered to the Designated DisposalLocation.

Response to Hazardous Waste Identified During Collection. If Contractor determinesthat ¡naterial placed in any Cart for Collection is Hazardous Waste, Designated V/aste, orothe¡ material that may not legally be Disposed of at the Designated Disposal Location orhandled at the Approved Organic Materials Processing Site, Approved RecyclableMaterials Processin$ Site, or Transfer Station, or presents a hazard to Contractor'semployees, the Contractor shall have the right to refuse to accept such material. ln such a

case, the Contractor shall contact the Generator and request Generator to aruange properDisposal. lf the Generalor cannot be reached immediately, the Contractor shall, before

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leaving the Premises¡ attach a tag to the Containers at least two inches by six inches (2" x6") in size, which indicates the reason for refusing to Collect the material and lists thephone number for the Frcsno County Environmental Health Department.

Contractor's environmental technician shall be notified to handle the issue with theGeneralor. The Contractor's environmental technician shall be notified by the Contractorand shall guide the Generator to safely containerize the Hazardous Waste and shallexplain'the Generator's options for proper disposition of such material. Under nocircumstances shall Contractor's employees knowingly Collect Hazardous Waste orremove unsafe or poorly containerized Hazardous Waste from a Collection Cart.

If Hazardous lrly'aste is found in a Collection Cart or Collection area that could possiblyresult in imminent danger to people or property, the Contractor shall immediately not¡rythe City's Fire Department using the 9l I emergency number. The Contractor shall notifythe City of any Hazardous Ìy'aste identified in Carts or left at any Premises withintwenty-four (24) hours of identification of such material,

Response to Hazardous Waste Identified at Disposal Site or Processing Site.materials Collected by Contractor are delivered to a faciliry owned by Contractorpurposes of transfer, Processing, or Disposal, load checkers and equipment operators atsuch facility shall conduct inspections in areas where Collection vehicles unload SolidWastè, Recyclable Materials, or Organic Materials to identify Hazardous Wastes.Facility personnel shall remove these materials for storage in approved on-site hazardousrnaterials storage confainer(s). Contractor shall make reasonable effofts to identify andnotifu the Generator, Contractor shall aÌrange for removal of the Haz-ardous Wastes bypermitted haulers in accordance with Applicable Laws and regulatory requirements.

If the uiracceptable material is delivered to the Designated Disposal Location, ApprovedOrganic Materials Processing Site, Approved Recyclable Materials Processing Site, orTransfer Station by Contractor before its presence is detectEd, and the Generator cannotbe identified or fails to remove the material after being requested to do so, the Contractorshall arrange for its proper Disposal and pay for costs of such Disposal. If identificationof the generator can be determined, the Contractor shall make a good faith èffort torecover the cost of Disposal from the Generator, and the cost of this eflort, as well as thecost of Disposal shall be chargeable to the Generator.

Regulations and Record Keeping. Contrâctor shall comply with emergencynotification procedures required by Applicable Laws and regulatory requirements. Allrecords required by regulations shall be maintained at the Contractor's facility- Theserecords shall include: waste manifests, waste inventories, waste characterization records,,inspection records, incident reports, and training records.

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43 8.7 NON.DISCRIMINATION44 Contractor shall not discriminate in the provision of service or the employrnent of Persons45 engaged in performance of this Agreement because of race, color, religion, sex, age, physical46 handicap, or medical condition in violation of any Applicable Law.

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COMMUNICATION AND COOPERATION WITH CITY

Communications. If requested, the Contractor shall meet with the City ContractManager at least once each month to discuss servìce issues. The Contract'or's fieldrepresentative and the Contractor's responsible offrcer as designated by the Contractorshall have e-mail and cellulartelephone capabilities to enable the City Contract Managerand the Contractor's field representative and the Cont¡actor's responsible ofäcer tocommunicate via e-mail and/or cellular telephone.'

Inspection by City. The City or their designated representatives shall have the righr toobserve and review Contractor operations and enter Premises for the purposes of suchobservation and review during business hours upon twenty-four (24) hours notice.

Cooperate with City-Initiated Studies. Contractor shall cooperate with and assist theCity or its agent with performance of City-¡nitiated studies of Solid Waste, RecyclableMaterials, and Organic Materials such as, but not limited to, waste generation,characterization, and composition studies.

8.9 YEAR 4 CONTRACTOR PERFORMANCE REVIEWWithin one hundred eighty (180) days following the end of Rate Period 3, the City shallundertake a review of the Contractor's performance under this Agreement. Contractor shallcooperate fully with the performance review and provide, within thirty (30) days of request, alloperational, financial and other information deemed reasonably necessary or convenient by theCity Contract Manager for purposes of conducting the performance review. The Contractor'sfailure to cooperate or provide all requested information shall be considered an event of defaultas provided in Section l3.l.A. The performance review shall be performed by a qualifiedindependent third party consultant with expêrtise in the solid waste and recycling industry inCalifornia.'Such consultant shall be selected by the City in its sole discretion. Contractor shallreimburse City up to fifty thousand dollars ($50,000) for the actual and reasonable costs incuredin conducting the review.

A. Scope of Performance Review. The performance review shall evaluate Contractor'sperformance under this Agreement within six major areas, each of which formed a basisfor the City's selection of Contractor for the award of this Agreement. The scope of theperformance review shall include all or any portion of the following:

f) Fec Audit. City's consultant shall audit the fees paid by Contractor to City, asrequired under Article l0 for,.at least, the most recently concluded Rate Period to'determine the accuracy and completeness of Contractor's payments to the City. Thisaudit will review Contfactors Billings to and receipts fiom Customers to determine:(i) if the amount the Contractor is Billing each Customer is correct in terms of thelevel of service (i.e., size of Cart, location of Cart) Contractor is providing suchCustomer; (ii) that the Customers receiving service are invoiced for the level ofservice they receive; and (i¡i) that the Contractor has accurately calculated the

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amount of the fees paid to the City including all Custorhers served and receipts underthis Agreement.

Rate Increase Review. For each Rate category, City's consultant shall compare theRate charged by contractor during Rate Period 4 with the Rate charged byContractor during Rate Period I of this Agreement to determine the percentageincrease in each Rate during the first four (4) Rate Periods of the Agreement.

Customer Satisfaction Survey. City's consultant shall mail, with return postagepre-paid, or otherw¡se conduct a customer satisfaction survey to all of Contractor'sCustomers served under this Agreernent. At a minimum; the survey shall include thequestion, l'Considering your experience with Contractor over the past four years, aieyou generally satisfied with. the services provided by Contractor?" and respondentsshall only be allowed to ans\ryer "yes" or "no". At the request of the city contractManager or the Contractor, the customer sat¡sfaction survey may also includequestions which request feedback regarding various services provided by contractorand the Customers' level of satisfaction with those.

Complaint Review. 'City's consultant shall review Contractor's customer servicesystems, repofts, and Complaint logs maintained by Contractor as required underSection 7.3.2 of this Agreement for, at least, the Rate Period immediately precedingthe performance review. Additionally, City's consultant shall determine the totalnùmber of service opportunities requested by Customers under this Agreement forthe same time period. A service opportunity includes: l) any time that a Customerhas a regularly scheduled Collection of any individualcontainer on a given day; and,2) when Custorners receive service of multiple Carts, each Cart shall also be countedas a separate service opportunity. For example, a Customer subscribing to weeklyCollection of Solid Waste, Recyclable Materials and Organic Materials shall bedetermined to have three service opportunities per week. The purpose of this reviewis to determine the level of totâl complaints relative to the number of total serviceopportunities during the review period.

Employee Review. City's consultant shall review Contractor's emptoymentlitigation history, California Depaftment of lndustrial Relations complaint history,Occupational Safety and Health Administration complaint history, and/or the recordsof any other applicable employee-related regulatory agcncy to establísh Contractor'srecord of handlíng employee grievances, claims, or other formal complaints, City'sconsultant shall review Contractor's personnel records to determine compliance withthe requirements of Section 8.5.8 (Hiring of City Employees).

Diversion Program Review. City's consultant shall review contractor'simplementation, promotion, and operation of programs required by Article 5 of thisAgreement as well as the public education and outreach requirements of Section 7.1and Exhibit F. The City's consultant shall also solicit input from Department ofResources, Recycling, and Recovery (CalRecycle) staff responsible for overseeingthe City's implementation of programs under AB 939 and AB 32 to determine their

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level of satisfaction with Contractor's implementation of diversion and educationprograms.

7) Default and Liquidated Damages Review. City's consultant shall review any andall notices of breach or default resulting from this Agreement as well as any and allliquidated damages assessed upon Contractor since the Commencement Date.

Minimum Standards of Performance. The minimum standards of performancg for thepurposes of this performance review, are as follows for each area under review:

X'ee Audit. Contractor's payments to the City shall not be more than five percent(5%) tess than the fees due to City as calculated during the fee audit.

Rate Increase Revierv. No Rate charged by Contractor shall have increased bymore than ten percent (10%) from Rate Period I to Rate Period 4.

Customer Satisfaction Survey. At least seventy-fìve percent (75%) of respondingCustomers shall have responded "yes" to the question, "Considering your experiencewith contractor over the past thrée years, arp you generally satisfied with theservices provided by Contractor?"

Complaint Revíew. The total number of Complaints received by Contractor shallnot exceed one percent (1%) of the total service opportunities during the reviewperiod.

Employee Review. The Contractor shall have maintained full compliance with therequirements of Section 8.5.8 of this Agreement and shall have no adversejudgment, settlement, determination, or ruling in any employee law suit. grievance,complaint, or claim related to operations under this Agreement.

Diveision Program Revierv. The Contractor shall have: l) fully implemented allCollection, public education, and outreach programs within six (6) months of theCommencement Date; 2) continued to consistently perform such services as requiredby this Agreement; and, 3) there shall be no fine(s), compliance order, or localassistance plan issued or pending from any State agency regulating AB 939 or AB 32compliance. contractor shall not be held responsible for any such fine, ordeç or planthat was the result of a progtam or programs which ar€ not the responsibility ofContractor as described ín this Agreement

Default and Liquidated Damages Review. The Contractor shall have no more thanone (l) notice of default and/orno more than twenty thousand dollars ($20,000) ofliquidated damages assessed duriirg the period between the Effective Date and thecommehcement of the performance review.

nemedies. In the event that Conlractor fails to meet any of the minimum performancestandards established in Section 8.9.8 above, Contractor shall be determined to be in

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35 8.IO YEAR 7 FRANCHISE SYSTEMREVIE\ry36 Within one hundred eighty (180) days following the end of Rate Period 6, the City may37 undertake a review of the eflicacy of the exclusive franchise system for providing service to38 Residential Customers within the City. Contractor shall cooperate fully with the review and

39 , provide, within th¡rfy (30) days of request, all operational, financial and other information40 - deemed reasonably necessary or convenient by the City Contract Manager for purposes of4l conducting the review of the franchise system. The City Council shall have the sole discretion in42 determining if such a review is warranted and in determining the scope of such a review.43

breach of this Agreement as defined in Section l3.l.A. The City Contract Manager shallnotifr the Contractor in writing of the City's determination that the Contractor has failedto meet the minimum performance standards established including each of the specificcontractual requirements for which the City finds the Contractor in breach.

Contractor shall be entitled to the opportunity to cure a breach resulting from Section8.9.B.1 by remitting payment in full to the City within thirty (30) days of receipt of a

notice of breach. The payment shall include the amount determined to be und€rpaid plusany late fees as described iri Section 10.4. In addition, Contractor shall, within (30) daysof receipt of a notice of breach demonstratg to the satisfaction of the City ContractManager, that any systematic issues in Contractor's operations or informat¡on systemswhich caused the underpayment have been resolved,

Contractor shall be entitled to the opportunity to cure a breach resulting from Section8.9.8.2 by: l) reducing its Rates for Rate Period 4 such that no Rate is more than fifteenpercent (15%l higher than that same Rate in Rate Period l, and 2) waiving Contractor'sright to rate increases as allowed under Section I L2 for Rate Periods 5 and 6.

Contractor shall not be entitled to the opportunity to cure a breach.resulting from Sections8.9.8.3 through 8.9.8,7 as no remedy can be reasonably made on a retroactive basis forfailures to perform under those requirements.

Determination of Default. The City Council shall review the results ofthe performancereview and consider any evidence presented by the Contractor in connection therewith.ln the event that a breach of contract has been idenlified in two (2) ormore of the seven(7) areas of the review defined in Section 8.9.4, and such breach has not been remediedas described in Section 8.9,C, the City Council may determine that a significant event ofdefault has occurred and may, in their sole discretion, terminate this Agreement by givingwritten notice of termination to the Contractor, either by mail or personal service. Anytermination of this Agreement by the City, resulting solely from the performance reviewcontemplated by this Section 8.9, shall be effective as of a date set by the City but maynot become effective less than seven hundred thirty (730) days from Contractor's receiptof such not¡ce of termination.

50

ARTICLE 9.RECORD I(EEPING AND REPORTING

4 9.I GENERAL5

6 9.1.1 Maintenance of Records. 7 Contractor shall maintain accounting, operational, statistical, and other records related to itsI performance as shall be necessary to develop reports required by this Agreement, to support any9 claim by Contractor under Section 11.5, and to respond to any reasonable request of the Cityl0 underSections4.5orll.5. Also,Contractoragreestoconductdatacollection,informationandI I record keeping, and reporting activities needed to comply with and to meet the reporting and12 . Solid Waste program management needs of City, the Act, and other Applicable ,Laws, and thel3 requirements of this Agreement.14

15 Because it is not possible to accurately anticipate all of the conditions giving rise to the need for16 information, to the extent such requirements are set out in this and other Articles of this17 Agreement, they shall not be considered'limiting or neçessarily complete. In particular, thisl8 Afticle is intended to only highlight the general nature of records and reports and their minimuml9 requirements and is not meant to comprehensively defÌne the format or content of such records20 and reports, Further, with the written direction by or approval of City Contract Manager, the2l records and reports to be maintained and provided by Contractor in accordance with this and22 otherArticles of the Agreement shall be adjusted in number, format, orfrequency, even if such23 adjustment results in significant additional costs to the Contractor.2425 To adjust Contractor's Compensation in the.event of City-directed changes (in accordance with26 Section 4.5) or in the event of special Rate review (in accordance with Section I 1.5) and support27 its obligations under Section I 1.6, Contractor must maintain accurate, detailed, financial and28 operational information in a consistent format, and must make such information available to the29 City Contract Manager in a timely fashion.30

3l 9.1.2 Retention of Records32 Unless otherwise required in this Article, Contractor shall retain alt records and data required to33 be maintained by this Agreement for the Term of this Agreement plus five (5) years after its34 expiration or earlier termination. Records and data shall be in chronological and organized form35 and readily and easily accessible. At the City Contract Manager's request, records and data36 required to be maintained that are specifically directed to be retained shall be retrieved in a37 timely manner by Contractor and made available to the City Contract Manager. Records shall be38 maintained in both electronic and hard copy format

-39

40 Records and data required to be maintained that are not specifically directed to be retained and4l that are not material to a special Rate review or required for the determination of the Contractor's42 performance, need not be retrieved by Contractor. In such a case and when such records and43 data are required to but are not retained by the Contractor, the City may make reasonable44 assumptions regarding what information is contained in such records and data, and such45 assumption(s) shall be conclusive in whatever acrion the City takes.

5l

I23

45

67

8

Il0lll2t3l4l5l617t8

19

202t22232425262l2829303l3233

3435363738394041

4243444546

9.1.3 Inspection of RecordsThe City, its auditors and other agents, shall have the right, during regular business hours, andwith turenty-four (24) hours written not¡ce identiffing the information desired and the types ofrecords that may contain that information, to conduct on-site inspections of accounting systems,payroll tax reports, specific documents or records required by this Agreement, or any othersimilar records or reports of the Contractor and all companies conducting operations addressed inthis Agreemenl that the City shall deem, át its sole discretion, necessary to evaluate annualreports, Rato review applications, and the Contractor's performance provided for in thisAgreement. The City may make copies of any documents it deems relevant to this Agreement.

9.1.4 Record SecurityContractor shall maintain adsquate record security to preserve records from events that can bereasonably anticipated such as a fTre, theft, water-intrusion, or an earthquake. Electronically-maintained data and records shall be prote€ted, backed-up (i.e., tape or other digital media copiesof the electronic records), and stored in an off-site location. In no case should less than twocopies of digital records be maintained and each copy must be maintained in separate locations.

9.2 RECORDS

9.2.1 Financial and Operational RecordsContractor shall maintain accurate and complete accounting records containing the underlyingfinancial and operating data relating to and showing the basis for computation of all costsassociated with providing services. The accounting records shall be prepared in accordance withGenerally Accepted Accounting Principles (GAAP) consistently applied. Financial andoperdtional records shall be maintained in suffìcient detailto supportthe reviewof Contractor'sRate application requests under Section ll.3 and Exhibit M. Should City Contract Managerdetermine that records were not maintained in suflicient detail to clearly suppoft Contractor'srequest, City shall have no obligation to approve an adjustment to Rates.

g.2.2 Collection Service RecordsRecords shall be maintained by,Contractor for City relating to:

A. Customer services and Billing;

B. Tonnage of Solid Waste, Recyclable Materials, and Organic Materials Collected listed byProcessing Site or Disposal Site where such materials were delivered;

Routes;

Faoilities, equipment and peisonnel used;

Facilities and equipment operations, maintenance and repair;

Recyclable Materials and Organic Materials Collection participation; and,

c.

D.

E.

F.

52

I

2

3

45

6789

l0lll2l3l415

l6t7t8t9z02tJJ

23242526272829303l32JJ343536373839404t4243444546

G. End use and markets for processed Recyclable and Organic Materials.

9.2.3 Transfer, Processing, and Disposal RecordsContractor shall maintain records of transfer, Disposal, and Processing of all Solid rilaste,

Récyclable Materials, and Organic Materials Collected by Contractor. At a minimum, recordsshall include: Collection vehicle license plate numbers, Collection vehicle number, date andtime, load weight, and tare weight.

9.2.4 Other Programs RecordsRecords for other programs including, but not limited to, public education and outrrach activitiesshall be tailored to specific needs. ,,ln general, the records shall include:

A. Plans, tasks, and milestones; and

B. Accomplishments such as dales,responses.

9.2.5 Customer Service Records

activities conducted, and numbers of participants and

ln order to facilitate the City's determination of Contractor's performance, records shall bemaintained by Contractor for City detailing, at a minimum:

A. Numberof calls, e-mails, web site originated contacts, faxes, and letters received;

B. Average hold time for calls; perce-ntage of calls answered within thirfy (30) seconds;percentage of calls answered within three (3) minutes;

C. Categories of calls,.e-mails, web site originated contacts, faxes, and letters (i.e.,compliments, Complaints, misssd pickups, damage. etc.);

D. Customer seruice representative training materials and record of training;

E. Complaint log (which shall also include all service requests) noting the name and addressof Complainanlservice request, date and tinie of ComplainVservice request, nature ofComplaint/service request, and nature and date of resolution; and,

F. Log of new Customers.

9.2.6 CERCLA Defense RecordsCity views its ability to defend itself against CERCLA and related litigation as a matter of greatimportance. For this reason, the City regards its ability to prove where Solid Waste Collected inthe City was taken for transfer or Disposal, as well as where it was not taken, to be matters ofconcern. Contractor shall maintain, retain and preserve records which can establish where Solid\ilaste Collected in the City was transferred and/or Disposed (and therefore establish where itwas not). Contractor shall provide these records to the City Contract Manager at the expirationor early termination of this Agreement, in an organized and indexed manner rather thandestroying or disposing of them.

53

2 9.3 GENERAL REPORTING REQUIREMENTS3 Records shall be maintained in forms and by methods that facilitate flexible use of data4 contained in them to structure repoÍs, as needed. Reports are intended to compile recorded data5 into useful forms of informat¡on that can be used to, among other things:6

7 ^.

Approve Rates;I9 B. Evaluate the financial efücacy of operations;

l0I I C. Evaluate past and expected progress towards achieving the Contractor's diversion goals

12 and objectives;13

14 D. Determine needs for adjustment to programs; and,

l5l6 E. Evaluate Customer service and Complaints.l7l8 Contractor may propose report formats that are responsive to the objectives and audiences forl9 eachreport. Theformatofeachrepoftshall beapprovedbyCityContractManager. Contractor20 agrees to mail a copy of all reports and submit all reports on computer discs or by e-mail in a

2l format compatible with City's software and computers, in the event it may do so at no significant22 additional cost. Contractor will provide a certification statement, under penalty of perjury, by'23 the responsible Contractor official, that the report being submitted is true and correct to the best24 knowledge of such official after their reasonable inquiry.2526 Monthly reports shall be submitted within thirty (30) calendar days after the end of the reporting27 month. Quarterly reports shall be submitted within forty-five (45) calendar days after the end of28 the report quarter. Annual ieports shall be submitted no later than forty-five (45) calendar days29 afte¡ the end of the each Rate Period.303l All reports shall be submitted to:3233 Solid Waste,Manager34 City of Fresno35 1325 E. ElDorado36 Fresno, CA 9370637

9.4 MONTHLY REPORTS

Reports shall present the following information electronically in a Microsoft Exoel-compatibleformat, or in such other formatted as directed by the City Contract Manager. Exhibit I includessarnple data reporting forms. The City Contract Manager may review and approve Contractor'srepoft formats and content and may change the frequency of reporting (e,g., from monthly toquafierly, quarlerly to monthly,,etc.) for items Iisted in this Section 9.4.

38

39404l42434445

54

I A, Solid Waste Services. Total Tonnage Collected and Disposed.2

3 B. Recyclable Materials Services. Tonnage Collected and Delivered to Approved4 Recyclable Materials Processing Site.5

6 C, Organic Materials Services. Tonnage Collected, Delivered to Approved Organic7 Materials Processing Site, and Processed. If the Processing Site handles OrganicI Materials Collected in the City and from other parties, provide a description of how the9 quantities of Organic Materials are tracked and allocated to the City.

t01l D. Clean-Up Senices. Number of Colloctions; Tonnage of material Collected, Tonnage of12 material Delivered to the Approved Recyclable Materials Processing Site; Tonnage of13 material Delivered to the Approved Organic Materials Processing Site; Tonnage of14 material provided to thrift storls, non-p.ofits, or other re-use organì-zations; quantity of15 any Household Hazardous Waste and/or E-Waste items collected; and, Tonnage of16 material Delivered for Disposal.t7l8 Customer Servicel920 l. Number of Customer, Generator, or other Person calls, emails, faxes, web sìte2l originated contacts, and letters by category (e.g., missed pickups, scheduled clean-22 ups, Billing concerns, damage claims, etc,)23 2. Number of Complaints and number of Complaints for which problem was not24 corrected or Customer was not satisfied within five (5) Business bays of receivíng25 the Complaint. Provide explanations on Complaints for which conective action did26 not occur within five (5) Business Days.21 3. Customer service summary that provides monthly and year-to-date Customer service28 performance statistics corresponding to the performance standards set for Liquidated29 Damages items I through 22 in Exhibit G. Signifioant trends and variances from the30 standards should be noted and explained.3l32 E. Account Information. In table format, the number of Customers and service levels for33 . all material types (including billing codes).3435 F. AB 939 County Surcharge - Collection and Reporting. Contractor acknowledges that36 City is a party to that certain AB 939 Memorandum of Understanding with the Counry of37 Fresno and various other jurisdictions dated January 6,2008 (the "AB 939 MOU"), and38 funher acknowledges having received and reviewed a copy of the AB 939 MOU. The39 Parties agree that Contractor is a "Jurisdiction's Hauler", as that term is used in Part IV,40 Section H of the AB 939 MOU. Contractorshall complywith all requirements of Pañ41 IV, Section H of the AB 939 MOU that are applicable to a Jurisdiction's Hauler,42 including but not limited to submittal of specified reports and, to the extent applicable,43 payment of the AB 939 Surcharge (as that term is defined in the AB 939 MOU).44

55

1 9.s QUARTERLY REPORTS2 Reports shall present the following information by each month's data in the reported quarter and3 include a quarterly average. In addition, each quarterly report shall show the past four (4)4 quarters average for data comparison (the first three (3) quarters of the Agreement shall only5 include the available quarterly information.) Refer to Exhibit I for sample reporting forms.6

7 ^.

Solid \ilaste ServicesI9 L Quarterly summary of monthly report required in Section 9.4.A.l0 2. Number of accounts collected by service level.ll12 B. Recyclable Materials Servicesl314 l. Quarterly summary of monthly repoft required in Section 9.4.8.l5 2. Numbe¡ of accounts collected.l6lV C. Organic Materials Servicet819 l. Quarterly summary of monthly report required in Section 9.4.C.20 2. Number of accounts collêcted.2t22 D. Customer Senice2324 l. Quarterly summary of monthly report required in Section 9.4.D.25 2. Customer Service overview sheet, training agenda, and other training supplements26 provided at the quarterly Customer service meeting.27 3. Call center reports documenting the number of calls received per month (or quarfer),28 the percentage of calls answered within thirty (30) seconds, and the percentage of29 calls answered within three (3) minutes.303l E. Education Activities3233 l. Public education materials produced and total numbe.r of each distributed.34 2. Dates, times, and group names of meetings attended to educate Customers on the35 Recyclable Materials and Organic Materials Collection programs, in accordance with36 Exhibit F.37 3. Account address, Customer name, iervice levels, and service changes (if any) for38 each waste audit performed as a requirement of Section 7.1.3940 F. Pilot and Nerv Programs. For each pilot and/or new program, activity-related and4l narrative reporls on goals and milestones and accomplishments; description of problems42 encountered, actions taken, and any recommendations to facilitate progress; and43 description of vsþiçlçs, personnel, and equipment utilized for each program.44

56

H.

9.6

23

45

678

9t0ill2l3t4l5t6l7

l8

Summary Assessment

1. Summary assessment of the overall Solid Waste, Recyclable .Mderials, and OrganicMaterials program f¡om Contractor's perspective relative to fìnancial and operatingstatus of program. DeScription of the status is to relate to how well the program isoperating for efliciency, economy, and effectiveness relative to meeting all the goalsand objectives of this Agreement including.particularly the Contractor's diversiongoals.

2, Recommendations and plans to improve.3. Highlights of significant accomplishments and problems.

Other Reports. Provide a summary, including number of êvents or i¡çids¡15 ¿¡6Tonnage Collected (if applicable) for the following:

l. Instructíonb to Customers (Section 8.2.4)2. Hazardous Waste incidents (Section 8.6.8)

ANNUAL REPORTSl920 9.6.1 Annual Report Requirements2l The annual report shall be in the form of the quarterly reports and shall provide the same type of22 information as required pursuant to Section 9.5, summarized for the preceding four (4) quarters.23 The annual report shall also include a complete inventory of equipment used to provide all24 service.2s26 9.6,2 Contractor Officers and Board Members27 Provide a list of Contractoris officers and members of its board of directors v,,ith the annual28 report.2930 9.6.3 Related-Party Entities3l Contractor âgrees that all financialtransactions with all Related-Party Entities shall be approved32 by the City Contract Manager in advance in writing. Related-Party Entities approved on the33 Effective Date of this Agreement are identified in the definition of Related-Party Entities in34 Article l. lf the Contractor proposes to amend the list of approved Related-PartyEntities, the35 Contractor shall submit a letter to the City Contract Manager identifying any additional Related,36 Party Entities and the nature of the relationship Contractor intends to have with such party(ies),37 and requesting approval of the Related-Party Entity(ies). Annually, the Contractor shall submit a

38 letter to the City Contract Manager disclosing the Related-Party Entities with which the39 Contractor has had financial transactions.4041 9.6.4 Operational Information "

42 In addition to requirements stated elsewhere in this Agreement, the annual report shall include43 the following information:4445 A. Routes by Material Type46

57

I l. Number of routes per each day of the week2 2. Type ofvehicle used on each route3 3. Crew size per route4 4. Number of full-time equivalent (FTE) routes5 5. Number of accounts per route6 6. Total hours per Material Type per day and pËr year7

I B. Personnel9

l0 l. Organization chart1 I 2. Job classifications and number of employees (e.g., administrative, Customer service12 representatives, drivers, route supervisors, Customer education staff, Reoycling13 oútrrcach staff)l4 3. Number of full-time equivalent (FTE) positions for each job classificationl5 4. Number of hours per job classification per day and per yeart617 C. Productivity Statisticsl8l9 l. Number of accounts per Material Type20 2. Tons per route per day21

22 D. Operational Changes (from prior-year report)2324 l. Number of routes25 2. Staffing26 3. Supervision27 4. Collection services.2829 E. Billing and.Account Information303l l. Billing review report in accordance with Section 7 .2.D.32 2. Account information lísting each Customer, Customer address and contact33 information, service level (Cart size and Collection frequency), and day(s) of34 Collection.3536 9.6.5 Financial Information37 The fìnancial information in this Section 9.6.5 shall be provided by Contractoron July I of Rate38 Per:iods 4 and 8, and Rate Periods 13 (if the Term is extended beyond 10 years) and 17 (if rhe39 Term is extended beyond 15 years), with its application for a cost-based Rate adjustment40 pursuant to Sect¡on 11.4. At such time, Contractor shall deliverto the City Contract Manager4l Contractor's financial statements for the most-recently completed year and profit and lóss42 $atements for the most-recently completed Rate Period. If Contractor keeps separate fìnancial43 statements and profit and loss statements relating solely to this Agreement; only those statements44 need be disclosed. Financial statements shall show Contracor's results of operations, including45 the specific revenues and expenses in connection with the operations provided for in this46 Agreement. The financial statements shall be prepared in accordance with Generally Accepted

58

2

3

4

5

6

7II

l0llt2l31415

l7l8t9202l2223242526272829

30

Accounting Principles (GAAP) consistently applied and fairly reflecting the results of operationsand Contractor's financial condition. City shall use its best efforts to mãintain the confiàentialityof Contractor's financial information.

9.7 LOCAL, DISABLED \IETERAN, AI\D MINORITY BUSINESS PURCHASINGContractor shall implement and maintain purchasing practices and supplier relationships thatfavor the use of vendors and service providers within the City and pãrticularly minority anddisabled veteran owned businesses. Contractor agrees to engage with locai chambers ofcommerce and the City to identif, opportunities to develop supplier relationships with local,disabled veteran, and minority-owned businesses. Along with Contractor's annuai report to theCity, Contractor shall include a listlng of local vendors and service providers, ideniiS,ing theapproximate amounts spent (in aggregate, detail is not required for each vendor) with eaðh olthe '

following types of businesses during the reporting year: l) businesses within the City; 2)disabled-veteran owned businesses; and, 3) minority-owned businesses.

I6 9.8 EVENT-SPECIFICREPORTING

A. Hazardous Waste. As required by and subject to the limitations of Section 8.6, theContractor shall notifu the Counly of Fresno Fire Department Hazardous Materialsresponse team of any Hazardous Waste identified in CaÉs or Ieft at ariy Premises withintwenty-four (24) hoúrs of identification of such material.

B. Warning Notices for High Level of Contaminants. As required by Section 8.2.4,Contracior shall report to the City Contract Manager any wárning n-otices issued toCustomers for high levels of Contaminants found in the Recyclable Materials or OrganicMaterials Carts. The repo¡t shall be delivered to the City Contract Manager within one(l) Business Day of issuance of the warning notice. City shall have no obligation torespond to such notices, nor shall it be obligated to interact with Customer in any way.

3t32

33 10.1 FRANCIIISE F'EE

34 In consideration of the exclusive rights provided Contractor herein, Contractor shall pay35 Franchisc Fees to'the City each month equal to fifteen percent (15%) of actual Gross Receipts36 remitted by customers for collectíon services provided in the city.37

38 IO.2 OTHER FEES AND PAYII{ENTS3940 A. Contract Management and Enforcement Fee. The Contractor shall pay the City a4l Contract Management and Enforcemenf Fee each month equal to one half percent (0.5%)42 of actual Gross Receipts remitted by Customers for Collection services provided'under43 this Agreement. The City shall use the fee to offset expenses related to contract

ARTICLE 10.FRANCHISE FEES AND OTHER FEES

59

I

23

4

5

68.7

I9

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l7r8t920 E.21

2223

24

25 IO.3 ADJUSTMENT TO FEES

26 City reserves the right to unilaterally adjust the fees established in this Article at any time during27 the Term of this Agreement, subject to City obligation to adjust Rates in accordance with Sectionz8 I t,5.29

30 IO.4 PAYMENT SCHEDULE AND LATE FEES

On or before the last day of each month during the Term of this Agreement, Contractor shallremittoCityFranchiseFeesandotherfeesasdescribedinthisArticle. Ifsuchremittanceisnotpaid to the City on or before the last day of any month, Contractor shall pay the fees due plusinterest compounded daily, where interest shall be calculated using the annual yield rate for theCalifornia Local Agency Investment Fund (LAfF) most-recently published by the CaliforniaState Treasurerl s offrce.

Eaoh monthly rem¡ttan;e to City shall be accompanied by a statement itemizing each fee paid;detailing calculation of all fees; and stating actual Gross Receipts by Service T1pe, for themonthly period collected from all operations conducted or permitted by this Agreement. Eachremittance including all supporting docurnentation shall be provided to:

Attn: City ControllerFinance DepartmentCity of Fresno

management, compliance, monitoring, and enforcement. The City shall retain the soleright to set priorities for its contract monitoring and enforcement among City personneland/or contractors. Unless otherwise adjusted by City subject to Section 10,3, this feeshall be adjusted annually in accordance with Section I 1.3.8.

Recyclable Materials Payment. The Contractor shall pay the City a RecyclableMaterials Payment each quafter equal to eight dollars ($8) for each ton of RecyclableMaterials Collected by Contractor and delivered to the Approved Recyclable MaterialsProcessing Site during the preceding quarter.

Signing Fee. The Contractor shall pay the City a signing fee equal to one million fivehundred thousand dollars (S1,500,000) within ten (10) Business Days of the City'sexecution of this Agreement.

Other Fees. The City may set or a-djust other fees as it deems necessary. The amount,time, and method of payment and adjustment process will be set in a mr¡nner similar tothat for other fees described in this Article, and Rates shall be adjusted in accordancewith Section 11.5 to reflect new fees.

Procurement Reimbursement Payment. The Contractor shall reimburse the Ciry for itscosts related to the procurement and negotiation of this Agreement in the amount of threehundred thousand dollars ($300,000) wíthin ten (10) Business Days of the City's

' execution ofthis Agreement.

3t3233343536373839404l4243

4445

60

l23

4

5

6

7

I9

10

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33

2600 Fresno StreetFresno, CA93706

ARTICLE II.CONTRACTOR'S COMPENSÄTION

AND RATES

rT.1 CONTRACTOR'S COÙ1PENSATIONThe Contractor's Compensat¡on for performance of all its obligations under this Agreement shallbe the actual Gross Receipts remitted to Contractor by Customers less fees due to the City inaccordance with Article 10. Contractor's Compensation provided for in this Article shall bethefull, entire, and complete compensation due to Contractor pursuant to this Agreement for alllabòr, equipment, materials and supplies, Processing and Disposal fees, taxes, iñsurance, bonds,overhead, operations, profit and all other things necessary to perform all the services in themanner required by this Agreement.

If Contractor's costs ard more than actual Gross Receipts retained by Contraclor, Contractor shallnot be compensated for the difference in costs and revenues. lf Contractor's costs are less thanthe actual Gross Receipts retained by the Contractor, Contractor shall retain the difference. Inaddition, calculations of Rates shall not be a justed for variances of actual costs or revenuesduring prior periods of time.

The Rates for Rate Period I and 2 were set by Contractor and approved by the City.Contractor's proposed costs for Rate Periods I and 2 and operating assumptions are presented inExhibit C. Rates for subsequent Rate .Periods shall be adjusted in accordance with this Articlell.

Under this Agreement, Contractor shall have the right and obligation to charge and collect fromCustomers lhe Rates set by Contraotor, which Rates shall not exceed the City approvedMaximum Permissible Rates, which are contained in Exhibit H. The Contractor shall billCustomers and collect payments in accordance with Section 7.2.

II,2 RATE ADJUSTMENT PROCESS

General. The City shall be responsible for adjustíng fhe Maximum Permissible Rates asdescribed in this Article. If at any time during the Term of the Agreement, the Contractordetermines the need for a Rate that does not appear on the City-approved MaximumPermissible Rate schedule, Contractor shall immediately notify the City ContractManager and request establishment of such Rate.

Rates Detérmined On or Before Execution of the Agreement. Maximum PermissibleRates for Rate Period l, which are presented in Exhibit H, were determined by Contractorand were approved by City Council resolution on or bEfore the execution of theAgreement. The Rates for Rate Period I are effective March 1,2013 through theðonclusion of Rate Period 2, December 31,2014. The Operating Component pori=ion of

3435 A.363738394041 B.42434445

6l

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7

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Rates for Rate Period I and 2, as per Exhibit H, shall be not be adjusted to reflect eitherincreases or decreases in costs from those anticipated by Contractor.

Annual Adjustment Process. The Maximum Pennissible Rates shall be adjustedannually, commencing with Rate Period 3 through the remaining Term ofthis Agreementincluding any extension periods, The adjustments to the Maximum Permissible Ratesshall be determined usingone of two methodologies: (l) an index-based adjustment, or(2) cost-based adjustment.

The index-based adjustment, which is described in Section I1.3, involves use of variouscosr adjustment factors (such as the percentage change in the consumer price index andthe current Disposal Site tipping fee) to calculate adjusted Rates.

The cost-based adjustment, which is described in Exhibit M, involves a detailed reviewof the Contractor's actual costs of service and determination of adjusted Rates to reflectContractor's actual costs; provided however, the Operating Cornponent portion of the,Rate adjustment does not exceed five percent (5%o).

Below is a table that specifies when the lwo Rate adjustment methods shall be used. Inthe event that the City elects to extend the Term of this Agreement for less than five (5)years per extension, City may require a cost-based review during each extensionregardless of the dates desøibed in the table below.

RatePeriod

CommencementDate of Rate

Period

Adjustment Method Used toDetennine Rates for the Rate

Period

Rate AdjustmentApplication

SubmittalDateI

2

3

4

6

78

9l0+ll*l2*13*l4+l5*l6*l7*l8+l9*

March t,2013January 1,2014Ianuary 1,2015January 1,2016January 1,2017January l, 201 8

January 1,2019' January 1,2020

January lr2021-January 1,2022January 1,2023January 1,2024January 1,2025January 1,2026January 1,2027Ianuary 1,2028January 1,2029January l,2030January ) ,2031

Not ApplicableNot Applicable

lndex-BasedIndex-BasedCost-BasedIndex-Basedlndex-Basedlndex-BasedCost-BasedIndex-Basedlndex-BasedIndex-BasedCost-Basedlndex-BasedIndex-BasedIndex-BasedCost-Bascdlndex-Basedlndex-Based

Not ApplicableNot ApplicableOctober 1,2014October l, 2015

July 1,2016October 1,2017October l, 2018October 1,2019

July l,2020October 1,2021October 1,2022October 1,2023

July l,2024October 1,2025October 1,2026October 1,2027

July 1,2028October 1,2029October 1.2030

24

62

*Applicable.only if the Term is extendpd pursuant to Section 3.4.

2 lt.33

4A,5

6

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INDEX-BASED ADJUSTMENT OF RATES

Ânnual Adjustment. Subject to the terms herein, the Contractor shall be entitled to anannual adjustment of all Rates, with the exception of Rates in Rate Period 2, which shallnot be adjusted. Each Rate, excluding Special. Charges, includes an OperatingComponent, Disposal Component, Processing component, and Fee component, whichare annually adjusted. The City Council shall make a good f¿ith effort to approveMaximum Permissible Rates by November I of each year, and such Rates shall beeffective on each subsequent January l. If Rates are not adjusted by November l, thenprior Rates remain in effect until such adjusrment is made.

The first adjustment is scheduled to take effect January l, 2015 subject to City Couhcilapproval. Each Rate is annuallyadjusted as specified in Section ll.3.B through ll.3.F,with the exception of Special Charges adjusted in accordance with Section I1.3.G.

Adjustment of the Operating Component The Operating Component of each Rateshall be adjusted annually by the Operating Cost Factor (the "OCF") using ihe followingmethodology. The OCF shall not exceed two percent (27o) during Rate Periods 3 and 4.The OCF shall not exceed three percent (3%) during any Rate Period after Rate Period 5.

Step l. Calculate the Labor-Related Factor of the OCF by calculating the l2-monthpercentage change in the most:recently published Employment Cost Index

. ("ECl") compiled and published by the u.s. Department of Labor, Bureau ofLabor Statistics (the "DOL") or its successor agency, using the followingBureau of Labor Statistics' paramelers:

. Compen_sation - Total Compensation

. Ownership - Private Industry

. Periodicity- lndex Number

. Group -210 - Service-Producing lndustries

. Seasonally Adjusted

For example, assuming:

l. Most-recently published ECI (third quarter 201 I ¡ = 163.5

_ 2. ECI published [2 months prior (third quarter 2010) : t 58.6

Labor-Related Factor = ((163.5-158.6y1 58.6) = 0.0309 = 3.lYo

The factor shall be rounded to the nearest tenth (l Oth) pircent.

Step 2. Calculate the Fuel Factor of the OCF by calculating the percentage change inthe average annual per gallon fuel cost. The average annual per gallon fuel costshall be calculated by dividing the total fuel cost for the preceding twelve¡nonths by the number of gallons purchased during the preceding twelve

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months. The mosi recent average annual per gallon fuel cost shall be comparedto the prior twelve month's average annual per gallon fuel cost to determine thepercentage change. For the purposês ofthis calculation, only liquefied naturalgas (LNG) purchased at rhe city-owned LNG fueling station shall beconsidered. For the purposes of the first rate adjustment, the initial per gallonfiiel cost shall be one dollar and thirty seven cenrs ($1.3?). Neither the in¡tialper gallon ft¡el cost.nor the average annual per gallon fuel cost shall includestate or federal fi¡el sales taxes for the purposes of this calculation.

For example,

l, Most-recent twelve month average annual per gallon fuel cost =$147,000 (total fuel cost for preceding twelve months) / 100,000 (otalgallons of fuel purchased during preceding twelve months = $1.42

2. Prior twelve month average annual per gallon fuel cost = $l.37'

Fuel Factor = ((l .47-l.37yl.37) = A.0729 = 7.3Vo

The factor shall be rounded to thê nearest tenrh (l Oth) percent.

Step 3. Calculate the Other Factor of ,the OCF by calculating the I2-month percentagechange in the most-recently published'Consumer Price lndex - All UrbanConsumers (CPI-U) compiled and published by the DOL or its successoragency, using the following Bureau of Labor Statistics' parameters:

. Not Seasonally Adjusted

. Area - Los Angeles-Riverside-Orange County, CA

. ltem - All ltems

. Base Period - 1982-84=100

For example, assuming:

l. Most-recently published CPI-U (November 201l) = ¡93.22. CPI-U published I 2 months prior (November 2010) = 190.6

Other Factor : ((l 93.2- 1 90.6)/1 90.6; = 0.01 36 : I .4%o

The factor shall. be rounded to the nearest tenth (l 0th) percent.

Step 4. Calculate the OCF as follows:

(313% x Labor-Related Factor calculated in Step I above) +(14.7% x Fuel Factor calculated in Step 2 above) +(54.0o/o x Other Factor calculated in Step 3 above)

For example, assuming:4243

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Step 5.

AdjustedOperating CostComponent

L Proposed labor-related çosts are 31.3% of proposed total annualoperating costs.

2. Proposed fuel costs a¡e l4.7Vo of proposed total annual operating costs.' 3. Proposed other costs a¡e 54.DVoofproposed total annual operating costs,4. Labor-Related Factor = 3.lYo (as calculated in the example in Step l)5. Fuel Factor = l0.4Yo (as calculated in the example in Step 2)6. Other Factor: L4o/o (as calculated in the example in Step 3)

OCF: (313% x 3.1%) + (14.7%x7.3þ+ (54.0%x ).4o/o) = 0.0280 :Z.B%i

The OCF shall be rounded to the nearest tenth (lOth) percent.

Calculate Adjusted Operating Component for each Rate as follows:

If OCF calculated in Step 4 is less than two percent (2o/o)in Rate Periods 3 and4 or three percent (3.00%) in any other Rate Period:

= Then-current Operating Component x (l + OCF)

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If OCF calculated in Step 4 is greater than two percent (2.00%) in Rate Periods3 and 4 or three percent (3.00%) in any other Rate Period:

= Then-current Operating Component x (l + 0.02)

= Then-current Operating Component x (l + 0.03)

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For example, assuming:

l. Then-ourrent Operating Component : $20.002. Operating Cost Factor = 3.0o/o (as calculated in Step 5 above) but is

capped at 2.0o/o; th e re fore :

djusted Operating Component : $20.00 x (l + 0.02¡: $20.40

The Adjusted Operating Component shall be rounded to the nearest cent.

C. Adjustment of the Disposal Component. The Disposal Component of Eaoh Rate willbe adjusted to reflect any percentage change in the per-Ton tipping fee charge at theDesignated Disposal Location. The adjustnrent shall equal:

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Adjusted DisposalComponent

= Then-cunent Disposal Component x(Cunent Designated Disposal Location Disposal Fee /Prior Designated Disposal Location Disposal Fee)

For example, assuming:

l. Then-current Disposal Component : $2.002. Current Designated Disposal Location Disposal Fee = $30.00 per Ton3. Prior,Designated Disposal Location Disposal Fee : $28.80 per Ton

Adjusted Disposal Component = $2.00 x ($30.00 i S28.80) = $2.08

The Adjusted Disposal Component shall be rounded to the nearest cent.

The Prior Designated Disposal Location Disposal Fee is the fee last used to set Rates.The initial Designated Disposal Location Disposal Fee in this Agreement is $34.68 perTon; this fee shall be used as the prior Designated Disposal Location Disposal Fee for thefirst adjustment of the Disposal Component. The Parties acknowledge that the timing ofchanges to the Designated Disposal Location Disposal Fee may not align wÌth the reviewand adjustment of Maximum Permissible Rates under this Agreement. In the event thatthe Contractor begins to pay a new Disposal Fee at the Designated Disposal Locationprior to the adjustment of Maiimum Permissible Rates under this Agreement, theadjustment to the Disposal Component shall consider that period. Alternatively, the Cityreserves the right to adjust Maximum Permissible Rates at any time during the year inorder to address the Disposal Component alone without adjusting any other component ofrates.

Adjustment of the Processing Component. The Processing Component of each Rateshall be adjusted as follows:

1. Solid Waste Collection Rates. For Solid Waste Collection Rates, the ProcessingComponent shall equal $0.00; therefore, no adjustmentlo the Processing Componentshall be made.

2. Recyclable Materials Collection Rates. For Recyclable Materials Collection Rates,the Processing Component shall equal $0.00; therefore, no adjustment to theProcessing Component shall be made.

3. Organic Materials Collection Rates, If adjusting Organic Materials CollectionRates, the Processing Componqnt shall be adjusted by the twelve (12) monthpercentage change in the most-recently published Consumer Price Index - All UrbanConsumers (CP|-U) compiled and published by the DOL or its successor agency,using the following Bu¡eau of Labor Statistics' parameters:

. Not Seasonally Adjusted

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. Area - Los Angeles-Riverside-Orange County, CA

. ltem -All Items

. Base Period - 1982-84=100

The adjustment shall be as follows:

AdjustedProcessing = Current Processing Component x (l + percent change in CPI-U)Component

For example, assuming:

l. Current Processing Component = $2.002. Most-recently published CPI-U (November 20tt¡= 193.23. CPI-U published 12 months prior to most-recently published CPI index

(November20l0¡ = 199.6

Adjusted Processing Component = $2.00 x Il+ ((t 93.2-190.6)/t90,6)]: $2.0¡

The Adjusted Processing Component shall be rounded to the nearest cent.

E. Adjustment of the Fee Component. The adjusted Fee Component of each Rate shall be- calculated as follows:

Adjusted = ((Adjusted Operating Component + Adjusted DisposalFee Component + Adjusted Processing Component) I (1 - 15.5%\ -Component (Adjusted Operating Component + Adjusted Disposal

Component + Adjusted Processing Component)

For example, assuming:

l. The Rate being adjusted is a Solid Waste Collection Rate2. Adjusted Operating Component = $20.40 (as calculated in Step 5 of Section

I1.3.8)3. Adjusted Disposal Component = $2.08 (as calculated in'section I t.3.C)4. Adjusted Processing Component = $0.00 (as calculated in Section I I .3.D.1)

Adjusted Fee Component = (($20.40 + $2.08 + $0.00) / (l - 0.155)) -($20.40 + $2.08 + $0.00) = 54.72

The Adjusted Fee Component shall be rounded to the nearest cent.

F. Calculation of Adjusted Rate. A-djusted Rates shall be catculated as follows:

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AdjustedRate

= Adjusted Operating Component + Adjusted DisposalComponent + Adjusted Processing Component + Adjusted FeeComponent

For example, assuming:

l. The Rate being adjusted is a Solid Waste Collection Rate2. Adjusted Operating Component = $20.40 (as calculated in Step 5 of Section

I1.3.8)3. Adjusted Disposal Component = 52.08 (as calculated in Section I 1.3.C)4. Adjusted Processing Component = $0.00 (Recycling) + $2.03 (Organics) (as

calculated in Section I L3.D)5. Adjusted Fee Component = S4.28 (as calculated in Section I 1.3.E)

Adjusted Collection Rate = $20.40 + $2.08 + $2.03 + $4.12 : $28.63

Adjustment of Special Charges. Special Charges shall be adjusted annually on the firstday of the Rate Period by the same amount as calculated in accordance with Step 5 ofSection I L3.8.

For example:

l. Then-Current Special Charge Amount = $50.002. Operating Cost Factor :3.9Vo (as calculated in Step 5 of Section I 1.3.8)

Adjusted Special Charge Amount = $50.00 x (l + 0.039) : $51 .95

The adjustment shall be rounded to the nearest cent.

Change in the ECl, PPI, or CPI-U. If the ECI, PPl, or CPI-U is discontinued or revisedduring the Term by the DOL, such other government index or computation with which itis replaced shall be used in order to obtain substantially the same result as would beobtained if the ECI, PPI, or CPI-U had not been discontinued or revised.

II.4 .A,NNUAL RATE APPLICATION PROCESS

A. Application Date and Content

l. Index-Based Rate Adjustment Methodology. On October l, prior to thecommencernent of the Rate Period for which Rates are to be determined using theindex-based Èate adjustment method, Contractor shall submit at least three (3)copies of its application requesting the Rate adjustment for the coming Rate Periodalong with all supporting documentation used to justify Contractor's request. Forexample, on October 1,2014, the Contractor shall submit three (3) copies of itsapplication for the Rate Adjustment to be effective for Rate Period 3. Theapplication shall present the calculations, as described in Section I 1.3, and allsupporting documentation for the calculations and adjusted Rates. The applicationshall also present the Rates for the then-current Rate Per¡od (e.g., Rate Period 2) and

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the proposed Rates for the coming Rate Period (e.g., Rate Period 3). The CityContract Manager shall review allcalculations provided by Contractor to verify theiraccuracy and conformance to this Agreement.

2' Cost-Based Adiustment Methodology. On July l, prior to the commencement ofthe Rate Period for which Rates are to be determined using the cost,based Rateadjustment method, Contractor shall submit three (3) copies of its applicationreqüesting the Rate adjustment for the coming Rate Period. For example, on July l,2016, the Contractor shall submit.its application for the Rate Adjustment to beeffective for Rate Period 5.

The application shall present the Contractor's actual total annuat cost of operations,profit, pass-through ,costs, City fees, the total Contractor's Compensation for themost-recently completed Rate Period and forecast of the same cost items for thecoming Rate Period in accordance with the procedures described in Exhibit M.Contractor shall assemble, provide, and submit such information that is necessary tosupport the actual costs presented and the calculation of the assumptions made byContractor with regard to foiecasting the total annual cost of operations, profit, pass-through costs, City fees, and the total Contractor's Compensation for the comingRate Period. The actual costs shall be based on the financial statements for the most-recently-completed Rate Period, which shall be submitted in accordance with therequirements of Section 9.ó.5. In addition, the application shall present theContractor's calculation of the Rate adjustment factor, present each Rate for thethen-cunent Rate Period, and each proposed Rate for the coming Rate Period.

1 Lastly, the application shall include operational data listed in Section 9.6.4

lf the City Contract Manager requests additional lnformation beyond that providedby the Contractor in its application, the Contractor shall provide all informationrequested by the City Contract Manager during its review of the application,including, but not limited to, all information from related parties requested by theCity Contract Manager regarding any transactions between Contractor and anyRelated-Party Entity pertaining to Contractor's performance under this Agreement.

B. City Review of Application. The Contractor's Rate application shall be reviewed by theCity Contract Manager. The City Council may approve Maximum Permissible Rates toreflect the adjustments made in accordance with Exhibit M, for the Rate Periods duringwhich that process is used. The City Council shall act in good faith to approve suchMaximum Permissible Rates by the commencement date of the Rate Period. Theadjusted Rates shall not take effect until the City Council has approved such Rates. In theevent that the City Council does not approve the adjustment to maximum PermissibleRates for any reason, the City and Conttactor shall meet and confer in good faith todetermine an acceptable alternative to the Rate adjustment. Such alternatives mayinclude, but are not necessarily limited to, identifring cost savings within Contractor'soperation or reductions in service that are comparabld to the revenue increases that wouldhave resulted from a Rate adjustment.

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Failure to ^Adjust Rates by January l. If the Conhactor submits its Rate application onor before the Rate application date identified in Section 11.2, and the City does not adjustRates to be effective on or before January I of a Rate Period, the City shall include a

surcharge on the Rates that shall be effective for the remainder of the Rate Period torecover revenues lost by the Contractor, if any. To determine the amount of lostrevenues, if any, the City and Contractor shall meet and confer to dctermìne the effect thedelay in adjusting Rates has on the Contractor's revenue. The assessment of the revenu€impact shall consider the Contractor's billing cycle (e.g., impact to Customen billed inadvance and to Customers billed in arrears), the ability of Contractor to delay issuance ofbills, the payment cycle of Customers, and other variables.

lf the Contractor does not submit the application on or before the Rate application date identifiedin Section I 1.2, Rates may not be adjusted by January l. In such case, all Rates shall be adjustedas soon as practical following approval by the City Council. If the Contractor does not submitthe application by the Rate application date identified in Section I 1.2, no retroactive adjustmentwill be made to allow the Contractor to recover nevenues that it would have collected, had theRate adjustment been implemented in accordance with the prescribed schedule.

I1.5 SPECIAL RATE REVIE1V

A. Eligible ltems. The Contractor is entitled to apply to the City Contract Manager forconsideration of a special Rate review, or the City Contract Manager may initiate such areview, should one or more of the following occur and should such occurrence have amaterialeffect on the Contractor's cost of service:

Documented significant changes in the cost to provide services required in thisAgreement as a result of an agreed-upon, City-directed change in scope, as providedfor under Section 4.5. F

Flood, earthquake, other acts of nature, war, civil insunection, riols, or other similarcatastrophic events beyond the control ofContractor.

Change in Law that: (l) was not reasonably known to the Contractor before theEffective Date, (2) the Contractor substantiates, and (3) results in a direct increase ordecrease of more than five percent (5%) in Contractor's cost of providing servicesrequired by this Agreement.

City-initiated changes to the amount of Franchise Fees or other fees in accordancewith Article 10.

5. Actual costs directly incumed for the provision of legal defense to the City as

required under Section 12.2 of this Agreement, if not prohibited by law.

Ineligible ltcmS. The Contractor will not be comp€nsated over the Term for:

l. Increases in the cost of Solid Waste, Recyclable Materials, or Organic MaterialsCollection, Transportation, Processing, or Disposal costs that may be impacted by

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change in Appibved Transfer Station or Approved Processing Site operatingconditions, unless such change is initiated by or at the direction of the city.

2. Decreases in Revenues from the sale of Recyclable Materials or Organic Materials.

3. Growth or decline in the number of Customers or their subscription levels.

4. Changes in the number of accounts related to Cart sizes or.frequenoy of Collection.

5. Change in the composition of Solid Waste, Recyclable Materials, or OrganicMaterials.

Review of Costs. If the Contractor or the City requests a special Rate review, the Cityshall have the right to review any or all financial and operating records of Contractor andRelated-Party Entities. Contractor shall pay the City for costs associated with th€ reviewincuned by the City and its agents unless the review is initiated by the City. Regardlessof Contractor's payment of costs associated with the review, City shall retain full andunimpeded discretion in selection of its agents to ensure, at a minimum, that no conflictof interest arises in the review of Contractor's request. City retains the right to select itsagents on the basis of their qualifications and experience and without regard to cost.

Submitt¡l of Request. The Contractor must submit its request for a special review ofRates, and reasonable cost'and operational data, in a form and manner specified by theCity Contract Manager at least six (6) months before the proposed effective date of anyRate adjustment.

lf City is requesting a special Rate review, the City Contract Manager shall notif, theContractor at least seven (7) months before the proposed effective date of any Rateadjustment. Upon such notification, Contractor shall, withid thirty (30) calendai days,submit reasonable cost and operational data as requested by the City Contract Manager,in a form and manner specifìed by the City Contract Manager.

Burden of Justification. Contractor shall bear the burden of justifying to the Ciry bysubstantial evidence any entitlement to cuffent, 'as well as increased, MaximumPermissible Rates pursuant to this Section I 1.5. If the City Contract Manager determinesthât the Contraçtor has noi met its burden, thE Contractór may request one (l) hearingwith the City Manaler, or their designee, to produce àdditional euid"n.". Ùpon suchrequest, the City Manager, or their designee, shall conduct the hearing. The City shallbear the burden of justifying, by substantial evidence, any entitlement to decreasedMaximum Permissible Rates pursuant to this Section I 1.5.

Approval of Request Based on evidence the Contractor andlor the City submit, the CityCouncil may approve some, all or none of the requested increase or decrease in theMaximum Permissible Rates. In the event the City denies Contractor's request, orgrant's the City's request for a decrease in the Maximum Permissible Rates, andConlractor disputes that the decision is supported by substantial evidence, Contractor

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shall have the right to present its claim in a court of competent jurisdiction, in thejurisdiction as defined in Article 14.4.

Compensation. Contractor shall bear their own costs for participating in such reviewand such costs may be reimbursed through Rates charged Customers.

II.6 RATES FOR CHANGES IN SCOPE

In the event either the City or Contractor requests a change in scope in accordance with Section4.5,lhe Contractor shall fr¡rnish the Ciry Contract Manager with projected operational and costdata for the change in scope to support any adjustment to Rates. For the purposes of analyzingcost impacts of changes in scope, the Contractor's profit shall be calculated using an operatingratio of ninety-two percent (92%), The City reserves the right to require that the Contractorsupply any additional cost data or other information it may reasonably need to ascertain theappropriate Rate adjustment, if any, forthe change in scope. The City,Contract Manager shallreview this operational and cost data, and the City Council shall establish Rates for the change inscope, if warranted.

The granting of any change in scope shall be contingent upon City approval and establishment ofnew Rates. The City shall adjust Rates, in good faith, coincident with any adjustment madepursuant to this Section so that the change in scop.e and the corresponding Rates becomecffective on the same date.

II.7 NOTICE OF RATE ADJUSTMENTSThe Contractor shall provide all Customers with advance written notice of approved Ratechanges, in the form of a bill insert at least th¡rty (30) days before the effective date of suchchanges.

ARTICLE 12.INDEMNITY, INSURANCE, AND

PERFORMANCE BONI)32 IzJ GENERAL INDEMNIFICATION33 Contractor shall indemnifu, defend with counsel acceptable to the City, protect and hold34 harmless the City and each of its officers, officials, employees, volunteers, consultants, and35 agents (collectively, indemnitees) from and against all claims, damages (including but not36 limited to special, consequential, natural resources and punitive damages), injuries, costs,37 (including without limit any and all response, rernediation and rEmoval costs), losses, demands,38 debts, liens, liabilities, causes of action, suits, legal oradministrative proceedings, interest, fines,39 attorney's fees, charges, penalties, and expenses (including without limit attorneys' expert40 witness fees and costs incured in connection with defending against any of the foregoing or in41 enforcing this indemnity), (collective-ly, "Damages") of any kind whatsoever paid, incurred or42 suffered by, or asserted âgainst, indemnitees arising from or attributable to the acts or omissions43 of Contractor whether or not negligent or otherwise culpable, in connection with or related to44 the performance of this Agreement, including without limit damages arising from or attributable

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to any operations, repair, clean-up or detoxification, or other plan (regardless of whetherundertaken due to governmental action) concerning any Hazardous Substance or HazardousWaste Collected in the City. Notwithstanding the foregoing, however, Contractor shall not berequired to indemnif the City for the costs for any claims arising from the Disposal of SolidWaste at the Designated Disposal L¡cation, or from Processing of Recyclable Materials at theApproved Recyclable Materials Processing Site, including, but not limited to, claims arisingunder CERCLA unless the claim is a direct result of Contractor's actions or negligence. Thisindemnity afforded indemnitees, shall only be limited to exclude coverage for intentionalwrongful acts and negligence of indemnitees, and as provided below, The foregoing indemnityis intended to operate as an Agreement pursuant to Section 42 USC 99607(e) of CERCLA andCalifornia Health and Safety Code $25364, to defend, protect, hold harmless, and indemnifi Cityfrom liability.

If Contractor should subcontract any. portion of the work to be performed undEr this Agreement,Contractor shall require each subcontractor to indemnify, hold harinless, and defend theindemnitees in accordance with the terms of the preceding paragraph.

This provision is in addition to all other provisions in this Agreement and is intended to survivethe expiration or earlier termination of this Agreement. Nothing in this paragraph shatl preventCity from seeking indemnification or contribution from Persons or entities othe r thanindemnitees, for any liabilities incurred by City or the indemnitees. Contractor's GuarantyAgreement (Exhibit J) shall extend to the indemnification obligation hereunder.

12.2 ARTICLE XIII INDEMNIFICATION

Should there be a Change in Law or a new judicial interpretation of Applicable Law, including,but not limited to, Art¡cle XIII C and D of the California Constitution (Commonly Proposition218), which impacts the City's ability to set or change Rates for the Collection services providedunder this Agreement, Contractor agrees to meet and confer with C¡ty to discuss the impact ofsuch Change in Law on either Pafiy's ability to perform under this Agreement.

The City shall not be in default of this Agreement, if it is determined by a oourt of competentjurisdiction, that it lacks the authority to set Rates and/or increase Rates for charges related toproviding service, pursuant to this Agrepment. Should a couft of competent jurisdictiondetermine that the City lacks authority to set and/or increase Rates for charges related toFranchise Fee, other City fees, governmental fees and charges then Contractor shall reduce theRates it charges Customers a corresponding amount, providing said fees, Rates and/or chargesdisallowed by the court are nót related to the cost of providing service hereunder and had beenincorporated in the Rates oharged by Contractor to its Customers.

Nothing herein is intended to imply that California Constitution, Articles XIII C and D, appty tothe selting of Rates for the services provided under this Agreement; rather this Section isprovided merely to allocate risk of loss as berween the parties.

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The Proposition 218 indemnifrcation shall.not extend to indemnification related to City fees

described in Article l0 of the Agreement or any City fees established in accordance with Sectionr0.2.

12.3 INDEMNIFICATION RELATED TO PERSONNEL

Contractor shall defend, hold harmless, and indemnify the City and each of its offìcers, officials,employees, volunteers, consultants, and agents, for all loss, damages, liability, claims, suits, costsor expenses whatsoever, including reasonable attomeys' fees, regardless of the merits oroutcome of any such claim or suit arising from or in any manner related to the City's request toremove or reassign any employee pursuant to Section 8.5. This Section 12.3 shall survive thetermination or expiration of this Agreement.

City shall defend, hold harmless, and indemnif, the Contractor and each of its officers for allclaims, suits, costs or expenses including reasonable attorneys' fees, regardless of the merits oroutcome of any such claim or suit, arising from compensation, pension, or other benefit due anemployee by the City solely as a direct result of his or her prior employment with the City.

12.4 INSURANCE

12,4,1 Minimum Scope of InsuranceCoverage shall be at least as broad as:

A. The most cunent version of Insurance Services .Ofïice (lSO) Comrnercial CeneralLiability Coverage Form CG 00 01, which shall include insurance for "bodily injury,""property damage" and "personal and advertising injury" with coverage for premises andoperations, products and completed operations, and contractual liability.

B. lnsurance Services Office form number CA 0001 covering Automobile Liability, code I"any auto", and endorsement CA 0025.

C. Workers'Compensation insurance as required by the State Labor Code and EmployersLiability insurance.

D. Either: Employee Blanket Fidelity Bond; or, Commercial Crime lnsurance which shall be

at least as broad as the most current version of Insurance Service Office (ISO) Crime and

Fidelity Form CR 00 20.

E. Pollution Legal Liability insurance.

12.4.2 Minimum Limits of InsuranceContractor shall'maintain Iimits no less than:

A. Comrnercial General Liability: $10,000,000 combined single limit per occurrence forbodily injury, personal injury, and property damage.

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I B. Automobile Liability: $10,000,000 combined single limit per accident for bodily injury2 and property damage.3

4 C. Workers' Compensation and Employers Liability; Iüorkers' compensation limits as5 required by the State Labor Code and Employers Liability limits of $1,000,000 per6 accident.78 D. Employee Blanket Fidelity Bond: $500,000 per employee, covering dishonesty, forgery,9 alteration, theft, disapp€arance, destruction (inside or outside); or, Commercial Crimel0 lnsurance with limits of liability of not less than S1,000,000 per occunence.ll12 E. Pollution Legal Liability: $5,000,000 for bodily injury, property damage, andl3 remediation of conlaminated site.t4l5 12.4.3 Deductibles and Self-Insured Retentions16 Any deductibles or self-insured retentions must be declared to and approved by the City. At thel'I option of the City, either; the insurer shall reduce or eliminate such deductibles or selÊinsuredI I r€tent¡ons as respects the City, its officials and employees; or the Contractor shall procure a bondl9 guaranteeing payment of losses and related investigations, claim administration and defense20 expenses.21

22 12.4.4 Other Insurance Provisions23 The policies are to contain, or be endorsed to contain, the following provisions:2425' A. Commercial.General Liability, Commercial Auto Liability and Pollùtion Legal Liability26 coverages:2728 l. The City and each of its ofücers, officials, employees, agents, consultants. and29 volunteers are to be-covered as additional insureds as respects: liabiliry arising out of30 actlvities performed by or on behalf of the Contractor; products and completed3l operations of the Contractor; premises owned, leasEd or used by the Contractor; or3? automobiles owned, leased, hired or borowed by the Contractor. The coverage shall33 contain no special limitations'on the scope of protection afforded to the City, its34 ofïioials, employees, or volunteers. The automobile liability is endorsed to contain35 MCA-90 coverage.3637 2. The Contractor's insurance coverâge shall be primary insurance as rsspects the City,38 its ofäcials, employees, and volunteers. Any insurance or self-insurance maintained39 by the City, its ofäcers, ofücials, employees, agents, consultants, or volunteers shall40 be excess of the Contractor's insurance and shall not contribute ,with it.4l42 3. Any failure to comply with reporting provisions of the policies shall not affect43 coverage provided to the City, its officers, offlrcials, employees, agents, consultants,44 or volunteers.45

75

I 4. Coverage shall state that the Contractoy's insurance shall apply separately to each2 insured against whom claim is made or suit is brought, except with respect to the3 limits of the insurer's liabiliry.45 B. Workers' Compensation and Employers Liability Coverage. The insurer shall agree to6 waive all rights of subrogation against the City, its officers, offìcials, employees, agents,7 consultants, and volunteers for losses arising from work performed by the Contractor forI rhe Ciry.Il0 C, Employee Blanket Fidelity Bond or Commercial Crime Insurance should be endorsed toI I name the City as a loss payee.l2l3 D. All Coverages. Each insurance policy required by this clause shall be endorsed to state14 that coverage shall not be suspended, voided, canceled by either Party, reduced in15 coverage or in limits except after thirty (30) calendar days'prior written notice byl6 certified mail, return receipt requested, has been given to the City.l7I 8 12.4.5 Acceptability of Insurers19 The insurance policies required by this Section 12.4 shall be issued by an insurance company or20 companies authorized to do business in the State and with a rating in the most recent edition of2l Best's Insurance Reports of size category VII or larger and a rating classifìcation of A- or better;22 or authorized by the City's Risk Manager.23

24 12,4.6 Verification of Coverage25 Contractor shall furnish Contractor's insurance agent a copy ofthese insurance specifications as

26 found in this Atticle 12.4, and direct the agent to provide the City with certificates of insurance27 and with original endorsements affecting coverage required by this clause. Issuance of28 documentation indicates the Contractor's insurance complies with these provisions. The29 certificates and endorsements for each insurance policy are to be signed by a Person authorized30 by that ,insurer to bind coverage on its behalf. The certificates and endorsements are to be3l received and approved by the City before work commenges. Upon request of City, Contractor32 shall immediately furnish City with a complete copy of any insurance policy requirrd under this33 Agreement, íncluding all endorsements, \¡rith said copy certified by the underwriter to be a true34 and correct copy of the original policy. This requirement shall suryive expiration or termination35 of this Agreement.3637 12.4.7 Required Endorsements3839 A. The Workers' Compensation policy shall contain an endorsement in substantially the40 following form:4l42 "Thirty calendar days' prior written notice shall be given to the City of Fresno in the43 event of cancellation, reduction in coverage, or non-renewal of this policy. Such notice44 shall be sent to:45

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I Solìd Wastc Manager2 City of Fresno3 13258. ElDorado4 Fresno, CA 937065

6 B. The Commercial General Liability, Commercial Auto Liabilify and Pollution Legal7 Liability insurarice policies shall contain endorsements in substantially the followingI form:9l0 I . "Thirty calendar days' prior written notice shall be given to the City of Fresno in theI I event of cancellation, reduction in coverage, or non-renewal of this policy. Such

l2 notice shall be sentto:t314 Solid Vy'aste Manager15 City of Fresno16 13258. El Doradol7 Fresno, CA 93706l819 2. "The City of Fresno, its officers, officials, employees, agents, consultants, and

20 volunteers are additional insureds on this policy." The City requires form CG20l02l .1185.2223 3. "This policy shall be considered primary insurance as respects any other valid and

24' collectible insurance maintained by the City of Fresno, including any self-insured25 retention or program of selÊinsurance, and any other such insurance shall be

26 considered excess insurance only."2?28 4. "Inclusion of the City of Fresno as an insured shall not affect the City's rights as

29 respects any claim, demand, suit or judgment brought or rscovered'against the

30 Conrractor. This policy shall protect Contractor and the City in the same manner ds

3l though a separate policy had been issued to each, but this shall not operate to32 increase the Contractor's liability as set fonh in the policy beyond the amount shown

33 or to which the Contractor would have been liable if only one (l) Party had been

34 named as an insured,"3536 12.4.8 Delivery of Proof of Coverage .

!7 Simultaneously_with the execution of this Agreement, Contractor shall fumish the City38 cedificates of each policy of insurance required hereunder, in form and substance sallsfactory to39 City. Such certificates shall show the type and amount of coverage, effective dates and dates of40 expiration of policies and shall have all required endorsements. If the C¡ty Contract Manager4l requests, copies of each policy, togetherwith all endorsements, shall also be promptly delivered

42 to City Contract Manager.4344 Renewal ceftificates will be furnished periodically to City Contract Manager to demonstrate

45 maintenance of the required coverage throughout the Term.46

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12.4.9 OtherlnsuranceRequirements23 A, If Contractor should subcontract any portion of the services to be performed under this4 Agreement, Contractor shall require each subcontractor to provide insurance protection in5 favor of City and each of its officeri, officials, employees, agents, consultants, and6 volunteers in accordanoe with the terms of Section 12.4, except that any required7 certificates and applicable endorsements shall be on file with Contractor and City prior toI the commencement of any services by the subcontractor.9

10 B. If at any time during the life of the Agreement or any extension, Contractor or any of itsI I subcontractors fail to maintain any required insurance in full force and effect, Contractor12 shall be in breaoh of the Agreernent until notice is received by City that the required13 insurance has been restored to full force and effeot and that the premiums therefore have14 been paid for a period satisfactory to City. Any failure to maintain the required insurance15 shall be sufficient cause for City to terminate this Agreement. No action taken by City16 pursuant to this section shall in any way relieve Contractor of its responsibilities under17 this Agreement.l8l9 lf Contractor fails to procure and maintain any insurance required by this Agreement, the City20 may take out and maintain, at the Contractor's expense, such insurance as it may deem proper2l and deduot the cost thereof from any monies due the Contractor.2223 The Commercial General Liability, Commercial Auto Liability and Pollution Legal Lìability24 insurance policies shall be written on an occurrence form. If Contractor is unable to purohase

25 Pollution Legal Liability insurance on an occurrence form and must purchase such insurance on26 a claims made form:2728 l. The "Retro Date" must be shown, and must be before the Effective Date of the29 Agreement or the cominencement of work by Contractor.3031 2. The policy shall be endorsed to provide not less than a S-year discovery period. This32 requirement shall survive expiration or termination of the Agreement.3334 3. If coverage is canceled or non-renewed, and not replaced with another claims-made35 policy form with a "Retro Date" prior to the Effective Date of the Agireement, Contractor36 must purchase "extended reporting" coverage for a minimum of five (5) years following3? the expiration or termination of the Agreement.3839 4, A copy of the claims reporting requirements must be submitted to City for review.4041 5. These requirements shall survive expiration or termination of this Agreement.42

43 12,5 PERF'ORMANCE BOND

44 On or before the Effective Date of this Agreement, Contractor shall fìle with the City a bond,45 payable to the City, securing the Contractor's faithful perfonnance of its obligations under this46 Agreement and such bond shallbe renewed annually if necessary so that the performance bond is

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maintained at all times during the Term. The principal sum of the bond shãll be six million fivehundred thousand dollars ($6,500,000.00). The bond shall be executed by a corporationauthorized'to issue surety bonds in the State, with a financial condition and record of servicesatislactory to the City. The performance bond is included in Exhibit K.

ARTICLE 13.DEF''AULT AND REMEDIES

IO T3.I EVENTS OFDEFAULTI I Each of the following shall constitute an event of default ("Event of Default") hereunder:12

13 A. Contractor fails or refuses to perform its obligations under this Agreement, or future14 amendments to this Agreement, and: (i) if the failure or refusal has created an imminent15 threat to public health and is not cured within two (2) Business Days after receiving16 notice from the City specifling the breach; or (ii) in the case of any other breach of thel7 Agreement, the breach continues for more than thirty (30) calendar days after written18 notice from the City for the correction thereof. Where such breach cannot be curedl9 within such thirty (30) day period, Contractor shall not be in default of this Agreement if20 Contractor shall have commenced such action required to cure the particular breach2l within ten (t0) calendar days after such notice, and it continues such performance22 diligently until completed.2324 B. Any representation, watranty, or disclosure made to City by Contractor in connection25 with or as an inducement to entering into this Agreement or any future amendment to,this26 Agreement, which proves to be false or misleading in âny material respect, as ofthe time '27 such representation or disclosure is made;2829 C. There is a seizure or attachment (other than a pre-judgment attachment) of, or levy30 affecting possession of, the opemt¡ng equipment of Contractor, including without limit its3l vehicles, Cafts, maintenance or oftice facilities, or any part thereof of such proportion as32 to substantially impair Contractor's ability to perform under this Agreement and which33 cannot be released, bonded, or otherwise lifted within fofy-eight (48) hours excluding34 weekends and Holidays;3536 D. Contractor fìles a voluntary petition for debt relief under any applicable bankruptcy,37 insolvency, debtor relief, or other similar law now or hereafter in effect, or shall consent38 to the appointment of or taking of possession by a receiver, Iiquidator, assignee (other39 than as a part of a transfer of equipment no longer useful to Contracfor or necessary for40 this Agreement), trustee (olher than as security for an obligation under a deed of trust),4l custodian, sequestrator (or similar official) of the Contractor for any part of Contractor's42 operating assets or any substantial part of Contractor's property, or shall make any43 general assigirment for the benefit of Contractor's creditors, or shall fail generally to pay44 Contractor's debts as they become due or shall take any action ín furtheránce of any of45 the foregoing;

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A court having jurisdiction shall enter a decree or order for relief in respect of theContractor, in any involuntary case brought under any bankuptc¡ insolvenc¡ debtorrelief, or similar law now or hereafter in effect, or Contractor shall consent to or shall failto oppose any such proceeding, or any such cou¡t shall enter a decrce or order appointinga receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar oflicial) of theContractor or for any part of the Contractor's operating equipment or assets, or orders thewinding up or liquidation of the affairs of Contractoç

Contractor fails to provide reasonable assurances of performance as required underSection 13.8.

13.2 RIGHT TO TERMINATE UPON DEFAULTUpon a default by Contractor, the City may terminate this Agreement within ten (10) BusinessDays of the default but no later than one hundred eighry (180) calendar days after rhe default.Such terminatíon shall be effective ten (10) Business Days following the City ContractManager's written notice to Contractor. Contractor may, within ten (10) Business Days of receiptof such notice, file, in writing, via certified mail, to the City Manager's office, a rêquest for-ahearing of the City Council to appeal the decision of the City Contract Manager. lf ðontractorfiles such a request, the City Council shall hear the appeal within thirty (30) calendar days ofreceipt of Contractor's request. lf the City Councìl upholds the City Contract Manager,srecommendation for termination of this Agreement, such termination will become effective ten(10) Business Days from the date of the City Council's determination without rights to anyfurther hearing, suit or legal action whioh, Contractor hereby expressly waives. The decision ofthe City Council is final.

I3.3 POSSESSION OF'PROPERTY UPON TERMINATIONIn the event of termination for default, the City shall have the right to take possession of any andall of Contractor's equipment used in the Colleclion, Transportation, Processing, and Dispoial ofSolid Waste, Recyclable Materials, or Organic Materials and the Billing and collection of feesfor these services and to use such property. For a period of up to one hundred eighty (l 80)calendar days from termination, the City shall have the right to retain the possession of suchpropefty until other suitable arrangements can be made for the provision of Solid Waste,Recyclable Materials, or Organic Materials Collection services, which may include the award ofan Agreement to another waste hauling company. If the City retains possession thereof aftertheperiod of time for which Contractor has already been paid by means of bills issued'in advance ofproviding service for the class of service involved, the Contractor shall be entitled to thereasonable rental value, not to exceed two hundred dollars ($ZOO¡ per day for vehictes, of suchproperty (which shall be offset against any damages due the City for the Contractor's default andany costs incurred by City to maintain such equipment).

In addition to any rights set forth in Section 8.4.D, City shall have the sole option, but not theobligation, to purchase Contractor's equipment (including but not limited to the vehiclesacquired by Contractor from City pursuant to Section 8.3.1 of this Agreement) at its net bookvalue, in the event of term inatjon for default or termination pursuant to Section I 3.2.

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Contractor shall ft¡rnish the City with immediate access to all of its business records related to itsCustomers and Billing of accounts for Collection services.

13.4 CITy'S REMEDIES CUMULATIYE; SPECIF'IC PERTORMANCEThe City's right to terminate the.Agreement under Section 13.2 and to take possession of theContractor's properties under Section 13.3 are not exclusive, and the City's termination of theAgreement and/or the imposition of Liquidated Damages shall not constitute an election ofremedies. Instead, these rights shall be in addition to any and all other legal and equitable rightsand remedies which the City may have.

By virtue of the nature of this Agreement, the urgency of timely, continuous and high qualityservice, the lead time required to effect alternative service, and the rights granted by City to theContractor, the remedy of damages for a breach hereof by Contractor is inadequate and City shallbe entitled to injunctive relief.

13.5 LIQUTDATEDDAMAGES

General. The Parties find that as of the time of the execution of this Agreement, it isimpractical, if not impossible, to reasonably ascertain the extent of damages which shallbe incurred by City as a result of a breach by Contractor of its obligations under thisAgreement. The factors relating to the impracticability of ascertaining damages include,but are not limited to, the fact that: (i) damage may resült to members of the public whoare denied services or denied quality or reliable service; (ii) such breaches causeinconveniencg anxiety, fnistration, and deprivation of the benefits of the Agre,ement loindividual members of the general public for whose benefit this Agreement exists, whichare incapable of measurement in precise monetary terms; (iii) the monetary loss resultingfrom denial of services or denial of quality or reliable services is impossible to calculatein precise monetary terms; and (iv) the termination of this Agreement for such breaches,and other remedies are, at best, a means of future correction and not remedies whichmake the public whole for past breaches.

Service Performance Standards; Liquidated Damages for F'ailure to MeetStandards. The Pafties further acknowledge that consistent, reliable Solid Waste,Recyclable Materials, and Organic Materials Collection service is of utmost importanceto City and that City has considered and relied on Contractor's representations as to itsquality of service commitment in awarding the Agreement to it. The Pafties recognizethat some quant¡fied standards of performance are necessary and appropriate to ensureconsistent and reliable service and performance. The Parties further recognize that ifContractor fails to achieve the performance standards, or fails to submit requireddocuments in a timely ,manner, City and its residents will suffer damages and that it isand will be impractical and extremely difficult to ascertain and determine the exactamount of damages which City will suffer. Therefore, without prejudice to City's right totreat such non-performance as an event of default under this Section 13.5, the Partiesagree that the Liquidated Damages amounts established in Exhibit G and the following

A.

B.

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Liquidated Damage amounts represent a reasonable estimate of the amount of suchdamages considering all of the circumstances existing on the Effective Date of thisAgreement, including the relationship of the sums to the range of harm to City thatreasonably could be anticipated and that proof of actual damages would be costly orimpractical.

Contractor agr€os to pay (as Liquidated Damages and not as a penalty) the amounts setforth in Exhibit G.

City may determine the occur¡ence of events giving rise to Liquidated Damages throughthe observation of its own employees or representative or investigation of Complaints by' Customers, Occupants, and Generators.

Before assessing Liquidated Damages, City Contract Manager shall give Contractornotice of its intention to do so. The notice will include a brief description of theincident(s) and non-performance. The City Contract Manager may review (and makecopies at its own expense) all information in the possession of Contractor relating toincident(s) and non-perforrnance. City Contract Manager may, within ten (10) calendardays after issuing the notice, request a meeting with Contractor. City Contract Managermay present evidence of non-perforrnance in writing and through testimony of itsemployees and others relevant to the incident(s) and non-performance. City ContractManager will provide Coniractor with a written explanation of his or her determinatìonon each incident(s) and non-performance prior to authorizing the assessment ofLiquidated Damages under'this Section 13.5. The decision of City Contract Managershall be final and Contractor shall not be subject to, or required to exhaust, any furtheradministrative remedies.

C. Amount. City may âssess Liquidated Damages for each calendar day or event, asappropriate, that.Confractor is determined to be liable in accordance with this Agreementin the amounts specified in Exhibit G subject to annual adjustment described below. Ifthe amount of Liquidated Damages for any three (3) month period exceeds the thresholdsestablished in Section 8.5.C, the City Contract Manager shall have the right to requestreplacement of the Contractor's field representative and the Contractor's responsibleofficer as designated by the Contractor as described in Section S.5.C.

The amount of LiquidatedDamages specified in Exhibit C shall be adjusted annually onthe fìrst day of the Rate Period. Liquidated Damage amounts shall be adjusted by theOCF calculated in accordance with Step 4 of Section I 1.3.8 in an index-basedadjustment Rate Period or with Exhibit M Section 4.,{ in.a cost-based adjusrment RatePeriod, or five percent (5%), whichever is less. The adjustment shall equal:

If OCF is less than five percent (5.00%):

Adjusted LiquidatedDamage Amount : Then-current Liquidated Darnage Amount x (l + OCF)

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I If OCF greater than five percent (5.00%):2

Adjusteä LiquidatedDamage Amouni = Then-current Liquidated Damage Amount x (l + 0.05)

For example:

I . Then-Cunent Liquidated .Damage Amount : $ 150.002. Operating Cost Factor : 4.3%o (as calculated in Step 5 of Section I 1.3.8)

Adjusted Liquidated Damage Amount = $150.00 x (l + 9.943) = $156.4S

The adjustment shall be rounded to the nearest cent.

D. Timing of Payment. Contractor shall pay any Liquidated Damages assessed by Citywithin ten (10) calendar days of the date the Liquidated Damages are assessed. If theyare not paid within the ten (10) day period, the Contractor shall pay the City theLiquidated Damage payment due plus interest compounded daily, where interest shall becalculated using the annual yield rate for the California Local Agency lnvestment Fundmost'recently published by the'State Treasurer's office. The City Contract Manager shallsend written notice to the Contractor and the Contractor's performance bond company

' stating Contractor's failure to pay Liquidated Damages and the City's right to terminatethe Agreement and proceed against the performance bond if payment is not receivedwithin ninety (90) days of the date Liquidated Damages were assessed.

If the Liquidated Damages payment is thirty (30) days past due, the Contractor shall paythe City double the Liquidated Damages payment due plus interest compounded dhily,where interest shall be calculated as described above. lf the Liquidated Damagespayment is sixty (60) days or more past due, the City Contract Manager shall notice theContractor and the Contractor's performance bond company of the City's intent toterminate the Agreement and proceed against the performance bond if LiquidatedDamages are not paid within ninep (90) days of the date of assessment. lf the LiquidatedDamages payment is ninety (90) days or more past due and the City provided Contractorwith 30.day advance w¡itten notice of its intent to terminate the Agreement for failure topay Liquidated Damages, the City may terminate the Agreement, in which case tlieprovisions of Section 13.3 shall apply and the City may.proceed against the performancebond required by the Agreement.

T3.6 AB 939 AND AB 34l-RELATED DAMAGESContractor shall pay its proportional share of all fines and/or penalties imposed by the Stare if therequirements of the Act are not met by the City.

lf the damages considered by this Section 13.6 are to be assessed, the. Contractor's proportionalshare shall be determined in reìationship to performance of contracto(s) in the other City-designated service areas. For example, if the fine or penalty assessed is based on a failure toimplement a residential program covered by this Agreement and Contractor fails to imptement

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the program, Contractor shall be determined to be l00o/o responsible. However, in the event thatthe fine or penalty is based on failure to implement programs for which the Contractor has nocontrol (e.g. Commercial or Multi-Family programs, City's purchasing policies, establishment ofordinances, etc.), Contractor shall not be responsible for payment of such fines. However, thisrelease from responsibility shall not apply to such Commercial or Multifamily programs whereContractor is separately obligated to payment of such fines. The proportionai share shall bedetermined in the City's sole discretion and shall not be subject to appeal or litigation.

lf fines and/or penalties are imposed by the State, Contractor shall only be liable if: (i)Contractor failed to implement all programs required by this Agreernent and described in ExhibitC; (ii) Contractor failed to perform public education and outreach responsibilities required underthis Agreement including, but not limited to those described in Section 7.1; or, (iiij Contractordelayed providing information that prevented Contractor or City from submitting reporrsrequired by the State in a timely manner.

I3.7 EXCUSE FROM PERFORMANCEThe Parties shall be excused fiom performing their respective obligations hereunder if they areprevented from so performing by reason of floods, earlhquakes, other acts of nature, war, civilinsurrection, riots, acts of any govemment (including judicial action), and other similarcatastrophic events which are beyond the control of and not the fault of the Party claimingexcuse from performance hereunder. Labor unrest, including but not limited to strike, worÈstoppage or slowdown, sick-out, picketing, or other concerted job action conducted byContractor's employees or directed at Contractor is not an excuse from performance andContractor shall be obligated to continue to provide service notwithstanding the occurrence ofany or all ofsuch events.

The Paßy claiming excuse from performance shall, within two (2) Business Days after suchParty has notice ofsuch cause, give the other Party notice ofthe facts constituting suçh cause andasserting its claim to exçuse under this Section.

lf either Party validly exercises its rights under this Section, the Parties hereby waive any claimagainst each other for any damages sustained thereby.

The partial or complete intenuption or discontinuance of Contractor's bervices caused by one ormore of the events described in this Article shall not constitute a default by Contractor under thisAgreement. Norwithstanding the foregoing, however, (i) the existence of an excuse fromperformance will not affect the City's rights under Section 4.6; and (ii) if Contractor is excusedfrom performing its obligations hereunder for any of the c.auses listed in this Section for a periodof thiny (30) calendar days or more, the City shall nevertheless have the right, in its solediscretion, to terminate this Agreement by giving ten (10) calendar days notice to Contractorunless Contractor has demonstrated, by the thirtieth (30ù) calendar day, to the satisfaction of theCity that the Contractor will resume services'no later than the sixtieth (60th) day following thedate service was interrupted or discontinued by Contractor. If the City terminates the Agreementunder this provision, the provisions of Section I 3.3 shall apply.

84

D ASSURANCES OF' PERFORMANCE2

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If Contractor (i) is the subject of any labor unrest including work stoppage or slowdown, sick-out, picketing or other concerted job action; (ii) appears in the reasonable judgment of City to beunable to regularly pay its bills as they become due; or (iii) is the subject of a civil or criminaljudgment or order entered by a Federal, State, regional or local agency for violation of anApplicable Law, and the City believes in good faith that Contractor's ability to perform under theAgreement has thereby been placed in substantialjeopardy, the City ma¡ at its option and inaddition to all other remedies it may have, demand f¡om Contractor reasonable assurances oftimeiy and proper performance of this Agreement, in such form and substance as the CityContract Manager believes in good faith is reasonably necessary in the circumstances toevidence continued'ability to perform under the Agreement. If Contractor fails or refilses toprovide satisfactory assurances of timely and proper perfor,mance in the form and by the daterequired by City Contract Manager, such failure or refusal shall be an event of default forpurposes of Section 1 3.1.

ARTICLE T4.OTHER AGREEMENTS OF' THE

PARTIES

14.1 RELATIONSIIP OF PARTIESThe Parties intend that Contractor shall perform the services required by this Agreement as anindependent Contractor engaged by City and not as an officer or employee of the City nor as apartner of or joint venturer with the City. No employee or agent of Contractor shatl be, or shallbe deemed, an employee or agent of the City. Except as expressly provided herein, Contractorshall have the exclusive control over the manner and means of conducting the Solid Waste,Recyclable Materials, and Organic Materials Collection, Transportation, Processing, andDisposal 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,Subcontractors, and agents. Neither Contractor nor its officerc, employees, Subcontractors, andagents shall obtain any rights to retirement benefits, workers' compensation benefits, or any otherbenefits which accrue to City employees, by virtue of their employment with the City.

14.2 COMPLIANCE \ilITH LA}VContractor shall at all times, at its sole cost, coníply with all Applicable Laws, permits andlicenses of the United States, the State and the City and with all applicable regulationspromulgated by Federal, State, regional or local administrative and regulatory agencies, now inforce and as they may be enacted, issued or amended during the Term.

r43 GOVERNING LAWThis Agreement shall be governed by, and construed and enforced in accordance with, the lawsof the State of California.

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i+.q JURrsDrcrroNAny lawsuìts between the Parties arising out of this Agreement shall be brought and concludedin the courts of Fresno County in the State of California, which shall have exclusive jurisdictionover such lawsuits, including the United St¿ites District Court for the Eastem District ofCalifomia and/or the Fresno County Superior Court.

With respect to venue, the Parties agree that this Agreement is made in and will be performed inFresno County.

IO I4.5 BINDING ON SUCCESSORSI I The provisions of this Agreement shall inure to the benefit to, and be binding on, the successors12 and permitted assigns of the Parties.l3

14,6 ASSIGITMENT

Neither Party shall assign its rights nor delegate or othçr'wise transfer its obligations under thisAgreement to any other Person without the prior written consent of the other Party. Any suchassignment made without the çonsent of the other Party shall be void and the attemptedassignment shall constitute a material breach of this Agreement.

For purposes of this Section, "assignment" shall include, but not be limited to: (i) a sale,exchange or other transfer of substantially all of Conlractor's local, regional, and/or companyassets dedicated to service under this Agreement to a third parg; (ii) a sale, exchange, or othertransfer of ten percent (10%) or more of the local, regional, and/or company assets or ownershipof Contractor to a Person except that no cumulative sale, exchange, or transfer of ownership mayexceed twenty percent (20"/ù during the Term of the Agreement; (iii) any reorganization,consolidation, merger, recapitalization, voting trust, pooling agreement, escrow arrangement,liquidation or other transaction to which Contractor or any of its members is a party that resultsin a change of ownership or control of ten percent (10%o) or more of the value or voting rights inthe local, regional, and/or company ownership interests of Contractor; (iv) divestiture of anAfÏiliate (e.g., trucking company, materials recovery facility, Transfer Station, Disposal Site,Compost Site, Recyclables Processing Site, etc.) used by Contractor to fulfill its obtigationsunder this Agreement; and, (v) any combination of the foregoing (whether or not in relâted orcontenrporaneous transactions) that has the effect of any such transfer or change of local,regional, and/o¡ company ownership and/or control of Contractor. For purposes of this Section,the term "proposed assignee" shall refer to the proposed transferee(s) or other successor(s) ininterest pursuant to the assignment-

Contractor acknowledges that this Agreement involves rendering a vital service to City'sresidents and businesses, and that City has selected Contractor to perform the services specifiedherein_based on: (l) Contractor's experience, skill, and reputation forconducting its Solid Waste,Recyclable Materials, and Organic Materials management operations in a safe, effective, andresponsible fashion at all times in keêping with Applicable Laws, regulations, and good wastemanagement practices; and, (2) Contractor's f,rnancial resources on a local, regional, and/orcompany to maintain the required equipment and to support its indemnity obligations to the City

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under this Agreement. The City has relied on each of these factors, among others, in choosingContractor 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 orapprove such request in its complete discretion. No request by Contractor for consent to anassignment need be considered by City unless and until Contractor has met the followingrequirements. The City may, in its sole discretion, waive one (l) or more of these requirements.

A. On the date the Contractor submits a written request for the City's written consentof an assignment, Contractor shall pay the City a transfer fee in the amount of twohundred fifty thousand dollars ($250,000).

B. In addition to the transfer fee, Contractor shall pay City its expenses for attomey'sfees and investigation costs nec€ssary to investigate the suitability of anyproposed assignee, and to review and finalize any documentation required as acondition for approving any such assignment.

C. Contractor shall furnish City Contract Manager with audited financial statementsof the proposed assignee's operations for the immediately preceding three (3)operating years.

D. Contractor shall furnish City Contract Manager with satisfactory proof: (i) that theproposed assignee has at least ten (10) years of Solid Waste, RecyclableMaterials, and Organic Materials management experience on a scale equal to orexceeding the scale of operations conducted by Contractor under this Agreement;(ii) that in the last five (5) years, the proposed assignee has not suffered anycitations or other censure from any Federal, State, or local contractor havingjurisdiction over its waste management operations due to any significant failure tocomply with State, Federal, or local waste management laws and that the'assigneehas provided the City Contract Manager with a complete list of such citations andcensures; (iii) that the proposed assignee has at all times conducted its operations

. in an environmentally safe and conscientious fashion; (iv) that the proposedassignee conducts ¡ts Solid Waste, Recyclable Materials, and Organic Materialsmanagement practices in accordance with sound waste management practices infull compliance with all Federal, State, and local laws regulating the Collection,

' Transportation, Processing, and Disposal of Solid Waste, Recyclable Materials,and Organic Materials, including Hazardous Waste as identified in Chapter II ofDivision 4.5 of Tiale 22 of the Califomia Code of Regulations; and, (v) that any' other information required by City Contract Manager demonstrates that theproposed assignee can fulfill the terms of this Agreement in a timely, safe, andeffective manner.

E, Contractor shall provide the City Contract Manager with any and all additionalrecords or documentat¡on that, in the City Contract Manager's sole determination,would facilitate the review of the proposed assignment.

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Under no circumstances shall the City consider or permit an assigrment if the assignment wouldresult in one (l) Person including, but not limited to, Parent Companies, company affiliates, orRelated-Party Entities holding exclusive franchises for Residential and both Commercialûanchise seryice areas in the City.

Under no circumstances shall any proposed assignment be considered by the City if Contractor isin default at any time during the period of consideration. If, in the City Contract Manager's soledetermination, there is any doubt regarding the compliance of the Contractor with theAgreement, City Contract Manager may require an audit of the Contractor's compliance and thecosts of such audit shall be paid by Contractor in advance ofthe performance of said audit.

I2 14.7 PARTIES IN INTEREST t

l3 Nothing in this Agreement, whether express or implied, is intended to confer any rights on any14 Persons other than the Parties to the Agreement and their representatives, successors andl5 permitted assigns.I6

I4.8 WAIVERThe waiver by either Party of any breach or violation of any provisions of this Agreement shallnot be deemed a waiver of any breach or violation of any other provision nor of any subsequentbreach of violation of the same or any other provision. The subsequent acceptance by eitherPany of any monies which become due hereunder, shall not be deemed to be a waiver of anypre-existing or concurrent breach, or violation by the other Party of any provision of thisAgreement.

I4.9 NOTICE PROCEDURESAll notices, demands, requests, proposals, approvals, consents, and other communications whichthis Agreement requires, authorizes or contemplates all, except as provided in Section 4.6.1, shallbe in writihg and shall either be personally delivered to a representat¡ve of the Parties at theaddress below or deposited in the United States mail, first class postage prepaid, addressed asfollows:

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A. Ifto City:Solid.Waste ManagerCity of FresnoI325 E. ElDorado

' Fresno, CA 93706

B. lfto Contractor:' Joseph KalpakoffI 5300 W Jenscn Ave

. Kerrnan, CA 93630

The address to which communications may be deliverednot¡ce given in accordance with this Section.

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Notice shall be deemed given on the day it is personally delivered or, if mailed, three (3)calendar days from the date it is deposited in the mail.

I4.IO REPRESENTATIVES OF THE PARTIESReferences in this Agreement to the "City" shall mean the City Council and all actions to betaken by the City shall be taken by the City Council except as provided below.-The City Councilmay delegate, in writing, authority to the City Manager, the Director of Public UtilitiesDepaÍment, and/or to other City ofTicials and may permit such officials, in tum, to delegate inwriting some or all of such authority to subordinate officers. By approving this Agreement, theCity Council has delegated to the City Contract Manager the specific authority granted the CityContract Manager by the terms of this Agreement. The Contractor may rely upon actions takenby such dslegates ifthey are within the scope of the authority properly delegated to them.

The Contractor shall, by the Effective Date, designate in writing a responsibte officer who shallserve as the representative of the Contractor in all matters related to the Agreement and shallinform the City Contract Manager in writing of such designation and of any limitations upon hisor her authority to bind the Contràctor. The City may rely upon action taken by such designatedrepresenlative as actions of the Contractor unless they are outside the scope of the authoritydelegated to him/Ìrer by the Contractor as communicated to City.

I4.II CRIMINAL ACTIVITY OT' CONTRACTOR

f4.ll.f CriminalActivityFor purpose of this Section, Criminal Activity shall mean any of the following €venrs orcircumstances:

A. Convictions. The entry against any Contractor Parg of a criminal conviction or apermanent mandatory or prohibitory injunction from a court, municipalify or regulatoryâgency of competent jurisdiction based on acts taken in his or her official capacity onbehalf of Contractor relating to:

L Fraud or criminal offense in connection with obtaining, attempting to obtain,procuring or performing a public or private agreement related to municipal SolidrvVaste, Recyclable Materials, or Organic Materials se.rvices of any kind (includingCollection, Transportation, transfer, Processing, Composting or Disposai), includìngthis Agreement or any amendment thereto;

2. Bribery or attempting to bribe a public officer or employee of a local, State, or' Federal agency;

3, Embezzlement, extortion, racketeering, false claims, false statements, forgery,falsificalion, or destruction of records, obstruction of justicg knowingly receivingstolen property, thrift, or m isprision (failure to disclose) of a felony;

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. 4. Unlawful disposal of Hazardous Vy'aste or Designated $/aste the occurrence of whichany of Contractor Parly knew or should have known;

5. Violation of antitn¡st laws, includinþ laws relatiñg to price-fixing, bid-rigging andsales and market allocation, and of unfair and anti-competitive trade practices laws,including with respect to inflation of fees for Solid Waste, Recyclable Materials orOrganic Materi als Col lection, Transportation, Process i n g, or D isposal ;

. 6. Violation of securities laws;

7. Felonies.

B. Pleas. Entry of a plea of "guilty," "nolo contendere," or "no contest" by a ContractingParty based on acts taken in his, her, or its oflicial capacity on behalf of Contractor withrespect to the conduot described in preceding subdivision (l ) of this Section.

l4.ll.2 NoticeContractor shall notifo City Contract Manager in writing within five (5) calendar days ofoccunence of any Criminal Activity.

14.11.3 Coniractor'$CureUpon occunence of any Criminal Activity, Conrractor shall immediately do or cause to be doneall ofthe following:

A. Terminate frorn employment or remove from office any offending individual ContractorParty, unless otherwise directed or ordered by a court or regulatory agency of competentjurisdiction or authority, and unless thdt termination would constitute a breach of anylabor agreement entered into by Contractor, and

B. Eliminate participation by any individual offending Contractor Party in any management,supervision, or decision activity ¡hat affects or could affect, directly or indirectly, the

. performance of the Contractór under this Agreement.

74.11.4 Transfer and HiringContractor shall not allow or çause to be allowed the hire or transfer of any individual from anyParent Company or subsidiary company or business entity of Contractor who has committedCriminal Activity as a Conlractor representative, field superuisor, officer, or director who isdirectly or indirectly responsible for performance of this Agreement without obtaining priorwritten consent of City Contract Manager, following full disclosure to City Contract Manager ofthe facts and circumstances sunounding such Criminal Activity.

14.1t.5 City's RemedyIn the event of any occurrence of Criminal Activity, the City, in its sole discretion, mayterminate the Agreement within thirty (30) calendar days written notice to Contractor, or mayimpose othcr sanctions (which may include financial sanctions, temporary suspensions, or any

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other condition deemed appropriate short of termination) as it will deem proper, in the followingevents:

A. Contractor fails to comply with the foregoing obligation of this Section 14.11, or

B. The Criminal Activity concernS or relates directly or indirectly to this Agreement,

Contractor shall be given the opportunity to present evidence in mitigation during the thirty (30)calendar day notice period.

14,72 PUBLIC IIEARING ON CONTRACTOR'S PERFORMANCEAt any time, but no more than once annually, the City may hold a public hearing; at whichContractor may be required by City to respond to information requests related to, aftend, andparticipate in, a review the Contractor's performance and to solioit feedback from the publicregarding Conffactor's performance of services under this Agreement. The purpose of the publichearing shall be to provide for discussion and review of technological, economic, and regulatorychanges in order to achieve a oontinuing, state-of-the-art Collection, Transportation, Processing,and Disposal system and to ensure services are being provided with adequate quality,effectiveness, and economy. Input provided during the public hearing may be used by the City atits disøetion

ARTICLE 15.MISCELLANEOUS AGREEMENTS

I5.1 ENTIRE AGREEMENTThis Agreement, including the Exhibits, represents the full and entire Agreemenl between theParties relating to the matt€rs covered herein.

IS.2 SECTIONHEADINGSThe article headings and section headings in this Agreement are for convenience of referenceonly and are not intended to be used in the construction of this Agreement nor to alter or affectany of its provisions.

34 I5.3 REFERENCES TO LAWS35 All references in this Agreement to laws shall be understood to inolude such laws as they may be36 subsequently amended or recodified, unless otherwise specifically provided.37

38 I5.4 INTERPRETATION39 This Agreement shall be interpreted and construed reasonably and neither for nor against either40 Party, regardless of the degree to which either Party participated in its drafting.4l i

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I5.5 AMENDMENTThis Agreement may not be modified or amended in any respect except in writing signed by bothParties.

5 15.ó SEVERABILITY6 If any non-material provision of this Agreement is for any reason deemed to be invalid and7 unenforceable, the invalidity or unenforceability of such provision shall not affect any of theI remaining provisions of this Agreement, which shall be enforced as if such invalid or9 unenforceable provision had not been contained herein.

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IS,7 COUNTERPARTSThis Agreement may be executed in counterparts, each of which shall be considered an original.

r5.8 EXHIBITSEach of the Exhibits identifÏed as Exhibit ",{" through "M" is attached hereto and incorporatedherein and made a part hereof by this reference. In the event that requirements, obligations,privileges, or entitlements of the Exhibits conflict with those described in the Agreement, theAgreement shall control.

IN WITNESS WHEREOF, the Parties have caused the Agreement to be executed on the day andyear first above written.

CITY OF'FRESNOA California Municipal Corporation

CONTRACTORMid Valley Disposal, Inc.

MARK SCOTTCity Manager

APPROVED AS TO FORM:FRANCINE KANNEInterim City Attomey

ATTEST:YVONNE SPENCE, CMCCity Clerk

JOSEPH KALPAKOFFVice President

ByCity Attomey

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ATTACHMENT 8

SECRETARTS CERTIFICATION

The undersigned, being the Secrcury of_ Mid Vrlley Disposal , ICalifomia Corporation ('the Conrpany"), do hereby cenifu rhat the following resolurion wæ adopted þthe Board of Directors of the Company and that such resolution has not been amended, modifred or

rescinded and is in full force and effect as ofthe date hereòfl

RESOLVED, thal

-Natalie Kalpakoff -be, and hereby is, ruthorized to €xecutc, þ and

on behalf of the Comprny, any and all agrements, instrumentg documents or paperq as he/she may

deem appropriate or necessary, pcrta¡ning to or relating to the Franchise Agnæmcnt between the City ofFresno and Company for Residential Solid lilaste, Reryclable Materials, and Organic M¡teri¡ls Sen ices

in Service Area No.

- and that any such action taken to date is hereby rat¡fìed and appmved.

na.ø: /t'" g /L

On

NOTARY'S CERTIFICÄ.TTON

STATE OF CALIFORNIA

COUNTY OF

_, before me, the undersigned, a Notary Public in and for theState of California, personally appeared

known to me to be theof Contractor that executed the within instrument on behalf

of the Contractor therein named, and acknowledged to m€ that such Contractor executed thesame.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my ofTicial seal in theCounty of this day of , _.

Notary Public

My Commission Expires:

Execulive Summory

Mid Valley Disposal (MVD) is a privately held local recycling and solid waste management company thathas been in business in Fresno County since 1,997. MVD principals play active roles in the managernentand execution of daily operations, and are extensively involved in the communities they serve. Theseindividuals embody generations of collection and processing experience; they have also acquired severalcontracts-including commercial collection operations, South District, in Fresno through the compet¡tivebidding process. MVD's successful start-ups have enabled the Company to develop and refine anexperienced, competent implementat¡on team that will employ its hard-earned knowledge to launchand manage friendly, high-diversion collection progrâms for Fresno residents.

Signing Fee

MVD will, upon contract execution, pay a signing fee to the City of Fresno in the amount of S5oO,OOO forany District awarded independently, or a total of S1,500,000 if awarded both Dlstricts North and South.

Unrivoled Locol Experience ond lnnovcrtion 1

MVD owner-managers are êntrepreneurial, inventive, and play active roles in shaping the resourcerecovery industry, staying current on trends and markets. MVD operates in 11 localjurisdictions. For thispanicular proposal, MVD has provided five relevant references: City of Avenal, City of Coalinga, FresnoCounty Unidcorporated Area, City of Kerman, and Kings County. These are found in Section 7 andinclude collection details such as number of accounts, programs offered, corresponding tonnages, andcollection system used. Also, MVD has provided five service initiation examples-one for theimplementation of multi-family recycling in seven communit¡es-to assure the City of its abiliÇ toimplement the subject scope of services.

To further assure the City, also included in Section 2 is a scorecard that records the commitments MVDmade to the City of Fresno during implementation of the commercial contract and MVD's pedormanceon each item listed. Evaluators should note that, in a six month snapshot, MVD significantly increaseddiversion in this sector as indicated in Sectron 2, and through its robust integrated processing facility andproactive, consistent outreach initiatives will do the same for its Fresno residential customers.

All of this experience benefits the City of Fresno in the followinB ways:

e The stability and know-how, including an experienced management team, achieved throughmanaging successful long-term municipal relataons in alljurisdictions serviced.Sec?ion 7.

'ee also MVO's support letteß îollowing ?he Cover Letter.

r Guaranteed recyclable materials processing capacíty throughout the term of the Agreement alMVD's'Materials Recovery Facility. MVD assertively sources, processes, and markets recyclablecommodities materiats through direct interaction with material buyers. To ensure expansioncapacity throughout the term of lhe Agreement, MVD is proactively quadrupling the size of its

City ol Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File #9211

Executive Summary

material recovery facility and upgrading its system to more effìciently hand the recyclables itprocesses as well as expand processing capabilities,

A comprehensive recycling program which includes the addition of several new materials as well asspecial drives-such as for textile recycling-that will engage residenls and keeps participation highand stable throughout the contract term.

Guaranteed organic materials processing capacity once its integrated organics processing facilitycomes fully on line in 2013 - 20L4. This new facility will include covered composting and anaerobicdigestion opérations in order to deal with the full range of organics and agricultural waste productsso prevalent in the local ar'ea. MVD will also scrub and cornpress the biogas mined from the AD'process to fuel its own fleet of clean vehicles.

A robust education and outreach program delivered through an organized team of OutreachSpecialiststo continually increase diversion levels. Theeffectiveness of the program is evident in thediversion rates in the experience examples and references provided in Section f . The program alsofeatures a schools education component, which reached over 1Q000 students last year.Secl¡on 2.8 - Public Educotion and Outreoch Plon.

Enhoncemenls ond Added Volue

The City could consider that, ln the llnrivoled Experience ond lnnovøtion ìnformation, above, MVD hasalready included certain enhancements, such as its own lnvestment in facilities infrastructure which willassist the City in meeting its zero waste obiectives and provide for ample, guaranteed processingcapacity throughout the contract term, additional recyclable materials collected at no additional charge,or the provision of an education and outreach program proven to get higher partic¡petion and diversion.

ln addition to thosê things, however, MVD is offering the following value-added enhancements as

detailed in Section i:

Multi-Family Commercia¡ Rate Adjustment

Under the current Commercial Franchise Agreement between the City of Fresno and MVD, automatedcart services for multi-family structures with more than four units are included as pan of the commercialrate schedule. lf MVD were awarded the Residential Franchise Agreement for Service Area 2, MVD willgain operational efficiencies in servicing these customers, and will pass along the reduced costsassociated with those efficiencies to customers by lowering rates for multi-family complexes with 10 ormore units to the 96 gallon resident¡âl rate schedule for cart service. Based on MVD estimates, thisreduction would affect over 1,400 custorhers with the proiected savings to these customers estimatedto be over StZS,OOO annually.

City of Fresno: Residential Solid Waste, Recydable Materials and Organic Materials Services - Bid File #9211

Executive Summary

Curbside Textile Collection and Recycling

Beginning on the operations start date, MVD will provide Fresno residents ân opportunity toconveniently recycle their unwanted clothing. Eeginning wlth an on-call approach to textile rerycling, inyear two MVD will pilot adding textiles to the curbside recycling program. To accomplish this, MVD willpartner with the local textile reclcling company The SOEX Group. The SOEX 6roup's core business andmission is Re-Wear, Re-Use, and Re{ycle. The SOEX Group will recycle textiles collected turning theminto raw materialfibers that are then used to make new industrial products,

Curbside E-Waste Collection

MVD will collect electronics at the curb at no additional cost. Large unbroken electronic items may beplaced at the curb and small electronic items must be placed inside a plastic bag. Residents must contactMVD 24 hours in advance to schedule e-waste collection,

Sponsorship of Recycled Art

MVD has enjoyed the partnerships it has created with schools through sponsorship of calendai andgrocery bag art projects. These projects have incentivized students to display the¡r talents and promoteconservation and ,recycling simultaneously. Partnering with organizations such as Fresno Art Hop,Creative Fresno, and Fresno Community College Art classes, MVD will create an environmentalawareness on a different level and creative mindset.

Online Reuse'Connection

MVD will creete a web page for Fresno community organizations, charities, and schools to post theirwish lists. MVD residents and businesses with reusable equipment, furniture, supplies, and toys will bed¡rected to this page to connect with an organization or group that needs the item they wish to discard.Participants will make direct contact with one another; however, MVD will request but not reguiredonon to complete a simple on line form to log their donations so that MVD can provide a report to theCity.

Payment Drop Box

MVD will provide a locking drop box at the City's Utilities Billing and Collection Division located on thefirst floor of City HalJ, as well as at the Manchester office as a convenience to customers. MVD will checkand remove the contents of lock boxes once per week. MVD will also include comment cards at eachlocation so that residents and business owners/managers can submit suggestions for serviceimprovernents to MVD. MVD willsh¿re this information w¡th the C¡ty,

Comrnu nity lnvolvement and Sponsorships

ln addition to the multiple community events and organizations MVD already supports throughsponsorships, MVD pledges an additional 515,000 annually to new community sponsorships,

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File #9211

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Executive 5ummary

Preporedness

As was the case on the Fresno commercial collection contract implementation, MVD will take a verystructured, thorough, and orderly approach to implementing residential services in Fresno. TheCorn¡iany has found that extensive employee training is key to a smooth trans¡t¡on, and MVD will takegreat care in educating drivdrs, customer service representet¡ves, and managers about the newprogram. ln meeting its own standards for implementation, the lmplementotíon Plon for this projectplaces a lot of weight on the training of all employees.

Summory

MVD believes the combination of its experience, the unique features presented in this prirposal, as wellas its highly competítive Cost Proposol present an excellent option for the City of Fresno's thoughtfulconsideration. MVD also believes that the added value inherent in the expansion of its ¡ntegratedmaterials recovery.complex the new technology it is introducing will benefit Fresno in manyimmeasurable ways. MVD looks forward to the post proposal process and þotential partnership with theCity of Fresno to produce excellent outcornes for Fresno residents, while significantly and stead¡lyincreasing diversion.

City of Fresno: Residential'Solid Waste, Recyclable Malerials and Organic Matedals Services - Bid File #9211

Compony Descripfion1.0 Overview

Mid Valley Oisposal (MVD) is an independently owned and operated local business with generations ofexperience in providing residential, commercial, and.¡ndustr¡al recyclable meterials, organic materials,and solid waste collection and processing services. The Kalpakoff family has been successfully operatingsolid waste management businesses in California for the past four generations. Today, Mid ValleyDisposal is being operated by the third (Jay Kalpakoff) and fourth generations (Joseph and JonathanKalpakoffl.

Reviewers will note MVD's relevant experience and competence, âs relayed throughout this section, inthe privatízation of solid waste collect¡on contracts, acquisition of collection contracts through both thecompetitive bid and procurement processes, implementation of recycling programs for all generatorstypes, as well as the delivery of education and outreach to residential customers. MVD currentlyprovides commercial collection services to Fresno in its South District. As described herein, theprivatization of Fresno's comrnercial collection routes and service initiation in this district went moresmoothly than is typical, and the relationships built with City staff and the community will support theimplementation of resident¡al collection services should the City award a contract to MVD.

MVD prides itself in doing what it promises it will do. A careful examination of MVD proposals to post-award results will bear this oul for reviewers. A Proposol Promise Repon Card is included in this sectionto add context to the data presented describing MVD's service implementation experience.

The Company's successes are continually solidified and built upon through dedication to educatingcustomers about MVD recycling programs. The effectiveness of MVD programs is quantifiable andresponsible for driving up recycling part¡cipation in the communities it serves Company owners pridethemselves in finding markets for atypical materials and materials more common to the local area thanperhaps in coastal jurisdictions, such as agricultural commodities (see Section 2). MVD sees ¡tsconnection to the local community and local businesses as foundational to its own sustainability.

MVD is continually reinventing itself to match the needs of ¡ts customers. In addition to the unique yetpragmatic programs MVD has already developed for its customers, the Company is currently in theprocess of updating its facility to include ¡ntegräted organics processing. To ensure communityacceptance through the reduction of odors and preservation of air quality, MVD is employing a coveredcomposting solution and anaerobic digestion technology. This state-of-the-art technology will allowMVD to assist its customers with achieving their zero waste goals.

City of Fresnol Residential Solid Waste, Recyclable Materials and organic Matèríals Services - 8id File #9211

Section 1- Company Description

Compony Descriplion1.1 Business Slructure

Mid Valley Disposal, lnc, (MVD) is a California S-Cörporation formed in !997, is authorized to do businessand does do business in California, and is the legal entity that will execute the Agreement.

MVD is comprised of four principals who are also managers: Jay Kalpakoff, Roy Mendrin, JosephKalpakoff, and Jonathan Kalpakoff. MVD owners are identified below by name, interest, andboard/officer positions he ld.

Owner Name OwnershlÞ Interest Boerd Pos¡t¡on

Jav Kaloakoff 77% President

Joseph Kalpakoff ts% Vice PresidentRoy Mendrin 9% Vice President - OperationsNatalie Kalpakoff SecretaryJonathan Kaloakoff s% Owner

Together, these individuals possess over 6O years of resource recovery and solid waste managementexperience. The Company now has five local collection contracts and is permitted to provide collectionservices in rural Fresno County areas. MVD prides itself in being locally owned and operated,

No creditor is owed a debt greaterthan ten percent of the Company's total assets.

City of Fresno: Residential Solid Waste, Recyclable Materiels and Organic Materials Services - Bid File #9211

Section 1- Company Description

I Conlpony DescriplÍon1,2 Description of Proposer's Experíence

The objective of Section 1.2 is to document MVD's experience in providing solid waste collection andmanagement services similar to those the City of Fresno has requested in its RFP. This information ísrelayed through a series of five profiles located et the end of this subsection that document MVD,scurrent collection contrect stetist¡cs. All municipal customers-including those administeringcommercial contracts only are listed below. More information is provided on five municipal customersto serve as official references in this section; however, MVD invites the City to contact any reference onthis page to inquire about the quality of MVD's service. MVD's current service area is shown on the mapfollowing this listing.

Citv of AvenalSince 2000Current Recycling Rote: 67%

Citv of CoalinsaSince 2004

Current Recyclìng Rote: 55%

Ciw ot,Fresno

Since 2077Current Recycling Rote:

Citv of ltgJgnSince 2001Current Recyclinq Rate: 53%

Citv of San JoaquinSince 2007Current Recyclíng Rote: 52%

Citv of MendotaSince 2003Current Recycling Røte: 32%

CiW of KermanSînce 2008Current Recycling Rote: 5 7%

Citv of FirebauehSince 2009Current Recycling Rote: 54%

City Manager - Melissa Whitten avenalcm@citvofavenal.comPhone (559) 385-5766

City Manager - Darrel Pyte dplve.@ç,oalir-reg.çomPhone (559) 93s-1533

Contract M anager -Jerry Schuber ierrv.schu ber@ffqsn o.EovPhone (559) 621-1801Commercial Collection Seruices - South District

City Manager - Jerry Forde sforde415@vahoo.comPhone (559) 945-224L

City M anager - Cruz Ra mos cru z ra mos @se bast ia tçoJo. netPhone (559) 693-4311

City Manager - Bryce Atkins citvnianase r@ci. me ndota.ca.usPhone (559) 266-6456

City Manage r - Luis Patlan lpatlan@citvofkerman,orsPhone (559) 846-9450

City Manager -Laura Weya nt citv{nan?eeJ@ci.firebquph.c?. gsPhone (559)659-2043

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materìals Services - Bid File #9211

3I

Section 1- Company Description

MVD operates by permit in the following rural ereas:

Armona Community Service D¡str¡ctSince 2008

Kings county uni ncorporatedSince 200Ú

Fresno County UnincorporatedSince 2006

Kettleman Community Service DistrictSince 2006

Although not all of MVD's resident¡al contracts are profiled later in this section in keeping wlth the City'srequest to provide three to five references, the following table provides summary data on all residentialaccounts serviced.

Jurisdiction Residential Accounts

Armona Community Service D¡strict 1098CiW of Avenal 1728Coalinga 3400City of Firebaugh 1250Fresno County Unincorporated 1793City of Huron 675Citv of Kerman 2801Kettleman Communitv Service District 410Countv of Klngs 2L82Citv of Mendota 1200City of San Joaquin 620Total Residential Customers t7.L57

City of Fresno; Residential Solid Waste, Recyclable Mater¡als and Organic Mater¡als Services - Bid File fr9211

4

-

5ec¡¡on 1 - Company Descript¡on

,{ii''l¿:i" I,

EEET]t@IEEE@@ml-lo IE@

4

C¡ly of Fresno: Residential Solid Waste, Recyclable Mater¡als end Organic Mater¡ðls Services - Bid Flle f9211

5I

Section 1 - Company Description

It is also important to note that each of the above contracts was obtained through dedication, vision,and hard work. In 2000 MVD strateg¡zed a five-, ten, and l5-year growth plan in which'the Company

completed in just five years. lts goal: to establish long term contractswith each of the five cities ín Western Fresno County and to secure epermit to operate in the rural areas. With that objective met, MVDdeveloped a state-of-the-art material recovery facility and transferstat¡on in Kerman, which is now being expanded to include ¡ntegratedorganics processing.

MVD has rnade a thorough review of the RFP to ensure it meets the Cityof tresno's stated qualificat¡ons and that the Company can assist theCity in meeting its zero waste objectives. MVD believes that it is well-

equipped to take on the scope of work conveyed in the RFP, and that the creative ideas outlined in thísproposal willenable the City to reach its divenion goals as well.

The following is a list of services MVD currently provides to its customers:

r' Residential recycling and organics collection and processing services./ Residential solid waste collection services./ Cornmercial rerycling collection and processing services.r' Commercial solid waste collection services.r' Bulky item collection and reuse facilitation, rerycling, or disposal.r' Community clean-up events (high diversion)/ Public education and outreach/ Construction and deùolition recycling

And, especially for this City of Fresno project, MVD is providing additional value through thelmplementation of several enhancements, such as.curbside collection of textiles in order to facilitate theCity's goalof 75 percent diversion. This is discussed in the Public Educdtion and Outreoch Pton.

MVD has provided five residential references on the following pages.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File #9211

6I

The City of Avenal is the largest city in Kings County with a

population of 15,505 and encompassing 19,4 square miles. MVD

provides a full range of residential collection services which include

a true organics program. ln addition to the residential collection

services provided, MVD also provides commercial solid waste and

recycling collection and provides roll-off service.

Unils Served/ Equlpmenl Used/ Processlng/Tronsfer/Annuol Tons Collectlon Slte

RESIDENTIAI- FROGRAM INFORMAIION- t"iiai' iil ¡ufomoted- Side- ¡îenor ronbiirr20O8.70 tons looder vehicles; 9ógollon

cqrts

Seclor/Progrom

ResidentiolSingle-fomilySolld l¡Uo¡leCollectionResidenliolSingle-fomilyRecycllngCollectlon ondProcesslng

ResidentiolMulli-fomilyRecycllngCollecllon ond

ResldenliolOrgonlcsCollecllon

MolerlolsCollecled

t¡rsw

Cleon yord wosle '17281

mixed wilh food 80ó.54lonswoste,

(l I Aulomoled Side- Mid Volley MRFlooder vehìcles; 9ó-golloncorls

Newspoper; mixed 't7281 (l I Automoled Síde- Mîd Voiley MRtpoper; OCC; gloss 624.25ions looder vehÌcles; 96-gollonbotïles/jors; lÍn/ corlsoluminum cons;plosiics l-7; scrop

24 complexes Shores SFD colleclion- 725 vnils/ equipment, obove.Ions includedin SFD figure

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Meterials Serv¡ces - Bid FiÍe S921t

clrY oF coaLlNGA rhe citY of coali d

rl, so,ilX sll, ,,irà'u;ir; encomPasses 5' ar full range of re h

ResidenliolSingle-fomilySolld Wosle

include a true organics program. ln addition to the residential collection services provided, MVD

also provides commercial solid waste and recycling collection and provides roll-off service.

Seclor/Progrom ftiolellols Unlts SerYed/ Equlpmenl Used/ Proce:slng/Tronsler/Annuol lons Collecllon

RESIDENTIAI PROGRAAN INf ORMAIION3,100/ (l) Aulomoled Side-2ó31.8ó lons looder vehicles - 9ó-

gollon corts

ReridentiolSingle-fomilyRecycllngCollection ondProcesslng

ResidenliolMulti-fomilyRecycllngCotlecllon ond

ResidenliolOrEonlcsCollecllon

Aviinol Loidf¡ll

Newspoper;rnixed 3400/poper; OCC; gloss l083.30lonsbollles/jors; tin/oluminum cons;ploslícs l-7; scropmetol.

(l I Automoted Side- Mid Vclley MRFlooder vehicles; 9ó-gollonco¡ls

Some os obove, 38 complexes Shores SFD collection Avenol Londfill- 850 unîts/ equipmenl, obove.Tons includedin SFD figure

Cleon yord wosle 3400imixed w¡lh food I 731 .83 tonswosle.

(2) Automoted Side-looder vehicles

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File #9211

MVD provides a full range of residential collection services to 1,793residentÍal customers in the unincorporated area in Fresno county, whichincludes a true organÍcs program. ln addition to the residential collectionservices provided, MVD also provides commercial solíd waste and

recycling collection to over 2,400 accounts and provides roll-off service.

Seclo¡/Progrqm'MoleriolsColleqled

ResidenliolSingle.fomilySolld WqsleCollectlon

ResidenliolSingle-fomilyRecyclingColleclion ondProcesslng

ResidentiolMulli-fomilyRecycllngCollecllon ond

ResidentiolOrgonlcsColleclion

Unlh Served/ Equipment Used/Collecflon

RESID ENTIAI PROGRAM INFORMAIIONtte3t '

t2) Ãiiomorêd s¡dé-2627,77 lons looder Splil Body vehictes

. 9ó-gollon corls(l)Aulomolêd Slde-

. looder vehicles 9ó-golloncorts

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Servíces - Bíd File f9211

9I

Newspoper; mixedpoper; OCC; glossboltles/jors; tin/oluminum cons;plostics l-7; scrop

(2) Automoted Side-looder Splif Body vehicles9ó-gollon corls{l ) Auìomoted Side-tooder vehicles 9ó-gollon

I l5 Shores SFD collectioncomplexes - equipmenl, obove.ó000 unils/Tons included

Cleon yord wosle ì88/mixed wilh food I ì0.20 lonswoste,

(ì) Aulomoled Side-loodei vehicles

MSW

The City of Kerman has a population of 13,544 and

encompasses 3.2 square miles. MVD provídes a full

range of residential collection services which include

a true organics program. ln addition to theresidential collection services provided, MVD also

provides commercial solid waste and recycling

collectíon and provides roll-off service.

Unils Served/ Equlpmenl Used/ Processlng/Trqnsler/Annuol Tons Collecllon Svslem Site

RESIDENIIAT PROGRAJII INTORûNAIION2801 I (l I Aufomoled Side- Americon Ave2897.07 tons looder vehicles -9ó-

gollon corls

Seclor/Progrom

ResidenliolSingle-fomitySolld WosfcCollectlon

ResidentiolSingle-fomilyRecycllngCollection ondProcesslng

ResidenliolMulii-fomilyRecycllngCollectlon ondProc

ResidenliolOrgonicsColleclion

MqlerlolsCollected

Newspoper: mixed 2801 I . (l I Automoted Side- Míd Volley MRFpoper; OCC; gloss 75ó.ó3 lons looder vehicles; 9ó-gollonbollfes/jors; tin/ cortsoluminum cons;plostÌcs l-7; scropmelol.Some os obove. 4l complexes Shores SFD colleclion Americon Ave

- SlSunits/ equipment, obove.Tons included

, ,n SFD figure

Cleon yord wosle 2801 Imixed with food 2123.17 tonswosle.

(l) Automoted Side-looders

City of Fresno: Residential Solid Waslq Recyclable Materials and Organic Materials Services - Bíd File #9211

Sect¡on 1- Company Descrlptíon

Seclor/Progrom

ResidenliolSingle-fomilySolld VtlosteColleclion

MoferlolsCollected

MVD provides sol¡d waste collect¡on to2,782 resident¡alcustomersin the unincorporated area of Kings County. tn addition to the

residential collection services provided, MVD also prov¡des

commercial collection to 703 accounts and roll-off service.

Unilc Served/ Equlpmenl lJsed/ Processlng/tronsler/Tons Collecllon

RÊSID ENTIAl PROGRAM INFORMAI¡ON2182¡ [2f Automoted Side-2ó08.71 lons loodervehicles-20:,32-,

ó4-,9ó-gollon corls

11I

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File f;9211

Section 1- Company Description

I Compony Description1.3 Description of Proposer's Service lniliolion Experience

ihe following Service tnitiat¡on ExperÍence examples correspond to services the City of tresno seeks. Theexamples appear in the following order.

3

4

5

Kerinan

Firebaugh

Kerman, Mendota, San

Joaquin, Firebaugh,Coalinga, Huron,Avenal

Pi'ivat¡zat¡on of Commercial Solid Waste andRecycling Co llection Services

PrivatizaticÍn of Solid Waste Collection Services

I mþiãm e nlat i o n of City-W idè hecyèi i n g p iöcià*m

lm plem entatio n of Com mercia I Collection Services

lmplementation of Muiti-Èamily itecycling

Example Jurisdiction Descriptor

City of Fresno: Residential SolÌd Waste, Recyclable Materials and Organic Materíals Services - Bid File fl9211

Section 1 - Company Description

City of Fresno

Iniliqlion Ex No.1City of tresno Privolizolion of Commerciol Colleclion Seryices

Address

CitV--.#--È-

Contact N_ame -

CommencementDate of Services

- _13_?: E. El Doredg_Street_ ,

Fresno

*tËirrlct¡uuãi- .. .December 5, 2011

Scope

Privatize commerc¡ai collection in southern district of the C¡ty.

Procure the City's trucks.

Procure displaced workers,

Create educational materials in multiple languages.

Update MVD's website to include City of Fresno inforrnation.

Create a multi-media outreach strategy plan.

Produce and apply interior and e)derior enclosure signage/labels,

Cornmunity meetings - advertise and hold 30 days prior to the contract start date.

Business fusociation meetings - hold 30 days prior to the start-up.

Account lnformation

Com mercial custorners: 6,000

MVD services an estimated 7500 recycling and trash metâl b¡ns and 5000 recycling, trash, and greenwaste carts. These totals include commercial, industrial, and multi-family customers.

Transition Summary

MVD Managers, Supervisors, Mechanics, Customer Servicb Representatives, Recycling Coordinators, andTruck Drivers worked diligently lo ensure the implementat¡on of services went as smoothly and as

organized as possible.

MVD began exclusive service within the City of Fresno on December 5rh with close to 6000 commercialcustomers. Thej contract was awarded to two different haulers splitting secl¡ons of the City of Fresnoservice area.

MVD bills commercial accounts directly on a monthly billing cycle. The customer has the option to paytheir bill online through our website, or by phone with Visa, MasterCard, and Discover, or by mail.

MVD procured a total of 20 trucks from the City of Fresno, 25 truck drivers, and two office staff. Thedriver training included 34 orientation meetings, safety meetings, safety videos, proper post- and pre-

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bíd Fíle #9211

Section 1 - Company Oescription

trip inspections, truck familiarization and training. Supervisors and Managers spent 8-10 hours meetingwith drivers to find out theroutes and service areas.

areas they were already familiar wlth and conducting site'visits to learn

The City of Fresno commercial routes were provided to MVD two weeks before the start date. The routeinformation included customer name, address, type of service and frequency. The information was therrtransferred to an excel report and MVD created new routes using the information provided by the Cityof Fresno Public Utilities Department. The routes were created based on mapping, number of hours itwould take the driver to complete a daily route and the number of containers to be serviced daily.

For the first few weeks the managers and supervisors spent one on one time with the drivers providingdetailed maps and meeting with the drivers before and after their day tb answer questions andconcerns. The drivers also received a detailed route with a map included. On a daily basis the drivers,dispatchers, customer service representat¡ves communicate and work together to provide ourcustomers with efficient reliable service, The custome/s concerns and complaints are also sorted outand dealt with on'a daily basis with our customer service representatives answering calls.

The initial outreach information was provided to each customer by a letter sent out from the City ofFresno during the month of October. A second letter was sent out by MVD on November 8th, informingthe customer of the new hauler and service area. The letter also requested custome/s to contact MVD ifthey have á locked enclosure/gate in orderto pick up keys and remotes. A postcard was sent out to thecustomer providing day of service.

MVD became proud rnembers of the Central Valley Hispanic Chamber, The Greater Fresno Chamber,and the Fresno Metro Black Chamber before starting services. This prrovided MVD with resourcesnecessary to provide outreach to local business owners regarding the implementation. MVD OutreachStaff attended monthly mixers, luncheons, and other events to introduce our company and the newservices within the City of Fresno.

MVD also included e-blast in each of the chamber electronic newsletters, This partnership betweenbusiness associations like the chambers will create additional opportunities for outreach throughout theCity of Fresno. MVD created a multi-media advertising plan to target each of the requirements from theCity of Fresno. A checklist of accomplishments is tracked to monitor the outreach completed.

lll¡llïr¡llllnml$t¡¡üÍ,ttfl,l.fläfil[I[frftllllË]øilL/tEllfi!llllllllf$lttll4flrill,ttll:lüfllECity of Fresno: Resídential Solid Waste, Recyclable Materials and Organic Meter¡els Services - Bid File #9211

T4I

Section 1 - Company Description

Oty ol

=EEGrtSr/¿f flEëi¡E?¿rSDepârtment of Publlc utilities

Solid Warte Management Diui¡ion1 325 El Dorâdô SlfeelFresno, California 93706.2014559-62f-1452 - FA,\ 559-266-1009wrvlv.fiesno.gov

July 24,2012

To whom it may concern;

ln December 2011, Mld Valley Disposal became one of two franchised haule¡s for the

City of Fresno. The conttacts were awarded through a request for proposal and terms of the

agreement were outlíned in a lengthy negotiation process, To date Mid Valley has

satisfactorily met the obligalions of the agreement and continuês to work w¡th city staff to

tulfill those obligations.

Should you have any questions please feel free to call me @, S59 6Zi-1SOt. Thantt you.

A Nationatly Accrediled Public Utility Agency

City of Fresnot Residential Solid Waste, Recyclable Mater¡als and Organic Materials Services - Bid File #9211

of Coalinga: Diversion Rate - 55%

lmplemenfotion of Citywide Recycling Progroms

,s$v- -*_t Co_ntagt Nqme

-...,ComrnencementDete of Services

-cgr_l,leq _ --Darre_l [. Pyle

2004

lip co_dg __ .e32r0559-935-1533

Scope

/ Procured City's collection vehicles, containers, and employees.

r' lmplemented single-family collection services with an automated 3-cart system-¡ lmplemented commercial solid waste and recycling services.,/ lmplemented a comprehensive community education piogram.

Account lnformation

Single-family customeÍ a ccou nts: 3,400Multi-family units: 850Commercial accounts: 300

Transition Summary

ln 2004, when the City of Coalinga issued a Reguest for Proposals to privatize its solid waste, recycling,and yard waste collection contract, MVD was awarded the contract, At that time the City provided onlysolid waste collection (no recycling collection services). MVD proposed services for all generators:residential and commercial solid wast€, recyclable materials collection, yard waste collection services,and recyclable materials processing.

Also, as part of the contract, MVD was to conduct waste audits of all premises city-wide and provideconta¡ners right-slzed to the new services. MVD took an assert¡ve approach with the residential wastestream by offering only 54 gallons forsolid waste in orderto shift recoverable materials to the recyclingstream to the greatest possible extent. A rate model was developed for commercial generators suchthat they were/are charged only for solid waste containers; recycling collection se¡rrices were/areprovided at no charge.

The City's equipment was procured by MVD, and the operation of their existing solid waste system wastrans¡tioned in 30 days. The following 45 days MVD delivered 10,000 new residential carts whileimplementing a new 3-cart system. ln addition to comrnencing solid waste collection, the terms of thecontract also called for the following changes:

City of Fresno: Res¡dential Solid Waste, Recyclable Materials and Organic Mäterials Services - Bid File tf921r

Section 1 -Company Description

SFD solid waste collection decreased from a 96-gallon cart to a 64-gallon cart_

Weekly SFD recyclable materials and yard waste collection with 96-gallon containers.

Commercial recycling at all businesses.

Convenient drop-off location for residents' bulky items.

Recycling colléction and education at all gou"rnr"llt buildings.

Partnered with local thr¡ft stores for unwanted furniture and discarded items.

lmplemented two annual cleanup days at no additional charge to residents.

Opened a CRV buy-back center.

Cíty of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File fl9211

Service lniliqlion Experience Exomple No.3lmplemenlolion of Citywide Recycling Progroms

Madera AvenueKerman Zip

Code

559{46-9387i-öpît¡îIiaiê -Commenæment Date ofServices

Scope

t Transition between contractors: SFD solid waste, recyclable materials, and organic materials

collection services.

/ Simultaneous universal recycling roll-out for MFD and Commercial customers.

r' MFDtechnicalassistance

Account lnformation

2801 SFD Customer Accounts4l complexes, 815 MFD Units329 Commercial Accounts

Transition Summary

ln August 2008, the City of Kerman awarded the contraçt for exclusive collection services to Mid ValleyDisposal. lt was a great accomplishment to gain the contract with the City of Kerman for a few reasons.First, MVD expanded operations by building a new Material Recovery Facility located in the City ofKerman. Second, the City of Kerman was located in the west region of Fresno County, which is the areaMVD primarily served. Finally, the City of Kerman was in great need of implementing a commercialrecycling program to meet state requirements, and MVD was confident it had the experience anddedication to assist the City meet this goal successfully.

MVD promptly began to strategically plan the implementation of the City of Kerman's new "Pay As YouThror¡/' commercial recycling progrâm. The Company hired additional staff to assist with the ¡nit¡aleducation efforts. Three staff members conducted waste audits to target every business in the City ofKerrnan. Each auditor was responsible for targeting a section of the C¡ty and checked current services todetermine the size recycling b¡n br cert to propose. Auditing staff had a roLte sheet with the servicesthe business received and also a proposed waste audit form to complete after audit was complete. Staffalso provided each business with a recycling guide, which included photos and listed the acceptablematerials to be placed in a recycling bin or cart,

-slate cA

City of Fresno: ßesìdential Solid Waite, Recyclable Materials and Organic Materials Services - Bid File #9211

Section I - Company Descript¡on

The feedback was primarily positive and businesses seemed to be ready for a change. The City Manageralso sent out a letter to businesses informing of the change and the importance of participating in thecommercial rerycling program. The support of the City Manager was very important to implement thisnew program

Once the recycling services were determined through waste audits, delivery of bins and carts began theend of July 2008 and Mid Valley Disposal began collection services with businesses by August 4, 2008.

ln addition to conducting a waste audit/site visit with each business during implementation, MVDOutreachStaffconductedatotalof5lsitevisitsduring200gandatotalof ll4sitevisitsthisyear. Onaside note, there approximately over 165 commercial businesses, eicluding multi-family and schools(these programs are tracked separately). The Company has monitored the commercial program eachyear and have increased recycling tonnage since implementation (please refer to tonnage reportincluded at the conclusion of this Exomplel.

The multi-family program is also crucial in increasing recycling effortswithin the City of Kerman. MVD received grant funding from CalRecycle to fully implement a multi-family recycling program in the Cityof Kerman and six additional cities served by MVD. The City ofKerman's multi-family recycling program start date was June Z,2OO9.MVD staff continues to visit each complex and monitors progr€ss.Results show that overall program is a success.

MVD staff provides ongoing education by delivering new educationmaterials for tenants. The education materials are available at the manager's office, where tenants canview them when a paying their rent. Education flyers are also placed in application packets for newtenants, MVD also attends events coordinated by two complexes located in Kerman.

MVD has also fully implemented a construct¡on and demolition recycling program with the City ofKerinan Planning Depaftment, MVD staff and City staff work closely to make sure contractors follow theCity's C&D recycling ordinance. Contractors are required to rent a roll-off bin through MVD or must selfhaul toourtransferstationinKerman. MVDstafftracksdiversionfromeachC&DprojectinKermanandprovides contractor with a diversion report at the end of each project. The program has shown successwith projects dìverting over 50-80 percent of materials from C&D projects.

The schools in the Kerman Unified School District have also improved recycling efforts with MVD schoolrecycling program. MVD Outreach Staff is very active within each campus making sure that recyclingcontainers are full of recyclables. Each campus has recycling containþrs located near cafeteria tocapture cardboard. The schools in Kerman also have on campus recycling 96-gallon carts which areconveniently located near each hall way for classrooms to recycle. The Kerman School reryclingpro8ram requires students to participate and move carts to the collection point and return them back totheir. appropriate location, Teachers and students have also formed recycle clubs that monitorprograms and report back to MVD when technical assistance is needed.

']-gI

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File fl9211

Section 1 - Company, Description

MVD has reach over 1000 students by conducting classroompresentations and school assemblies. MVD has also donatededucation niaterials to school events and fund raisers.

This year MVD will also partner with the City of Kerman and sixadditional cities served by MVD to purchase a recycling robot thatwill be used for education purposes. This will be an excitingacquisition to our education program.

ln addition to beginning solid waste collection, the terms of the contract atso called for the changeslisted below, allof which MVD successfully implemented.

{ New three-cart systems for each residential home (refuse, recycling, and green waste). Carts are

gray with different color lids.

SFD recyclable materials, yard waste,'and refuse weekly collection.

Fully implement a commercial recycling program.

Provide each business with new refuse bins or carts.

Fully implement multi-family recyclin! program (six complexes).

Fully implement a school recycling program.

Fulfy implement C&D progri¡m.

Provide twice a Vear community cleanup events for collection of bulky materlal, green waste, and e-

waste.

Complete annual reports on behalf of the City to Cal Recycle.

Contamination program (monitor residential program with tagging system).

ln conclusion MVD successfully implemented residential, commercial, and school recycling programs forthe City of Kerman. These programs have proven success with the results of the Cal Recycle AnnualReport calculated 2009 disposal amount decreasing to reach the City diversion goal.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File tl921L

January 3,2012

To Whom lt May Concem:

Re: Mid Valley Disposal, lnc.

783 S. Madera AvenueKennan, CA 93630

553_646-G343

The Kerman Chamber of Commerce is pleased to recommend Mid Valley Disposel, lnc.for your waste disposal and recycling services. Mid Valley Disposat (MVD) has been inbusiness in our area since 1997; lhoy are a "oommunity minded" company providing aservice as well as suppoñing community events and organizalions.

Business Attributes:

a) locally ownedb) committed lo customer servicec) efficient, reliable solid wasle and green waste collecîiond) provider of recyding collectione) friendly. personable employeesf) provider of educalion presentalions for businesses, schools and organizalionsg) pnoprietor of a Material Recovery Facility and Transfer Stationh) providing jobs

Mid Valley Oisposal is meeting the wasle collection and recycJe needs of the householdowner, small and large businesses, comrnerclal, construclion and lhe rural agricultureowner.

Jusl this past fall, I personally had the opporlunity to experience the excepiional serviceprovided by MVD in the recycling ol paper trays (raisin harvest). MVO emptoyeesresponded the same day my husband made the calf for pickup service!

On behalf ol the Kerman Chamber of Commerce, vüith aflìrmation f highly recommendMid Valley Disposal lnc. for waste disposal collection and recycle services.

Regards,

Kerman Chamber of Commerce

yryvw_.le rma n ctlaI be r. o ra Email: hnnchmbr@sebastiancorp.nei

rd,íCity of Fresno: Residential Solid waste, Recyclable Materials and Organic Materials Servìces - Bid File f9211

Street

lmplemenlolion of Commerciol Colleclion Services

State 7ipCode

5sg-o6i¡-2d+¡tõpiiæt Nár'c- -

Commencemenl Date ofServices

Scope

j taiîã wevàni, City.Manager

2009

Trans¡tion between contractors: SFD solid waste, recyclable materials, and organic materialscollection services.

,/ Simultaneous universal recycling roll-out for MFD and Commercial customers.r' MFD technical assistance

Account lnformation

1250 SFD Customer Accounts450 MFD Units2 26 Commercial Accou nts

Transition 5ummary

Mid Valley Disposal began exclusive colleciion seruice with the City of Firebaugh February 1't 2009. Tobegin services the-Company purchased tulo contracts with the original hauler. The contracts includedthe City of Firebaugh and Fresno County. ln addÍtion to gaining two new contracts with the City ofFirebaugh, MVD implemented new recycling programs to remove the C¡ty from a non-compliance orderfrom CalRerycle.

MVD was prepared to take on the challenge of fully implementing recycling programs within the City ofFirebaugh and inherit the current non-compliance order and changing old habits of the cornmunitywhich did not include recycling.

MVD began implementing the 3-cart single family program February l, 2009, by implementing a

residential education program. The education program began withshowcasing the 3-carts that would soon be delivered to each residence infront of City Hall. The display also included posters for each cart show¡ngpiclures of the materials accepted. ln addition, Mid Valley Disposal

contacted the local Spanish television station for an interview to informresidents of the new residential program. Mid Valley Disposal also createdan education flyer that showed the three carts along with photos of the

ti

Cíty of Fresno: Residential Solid Weste. Recyclable Materials and Organic Materials Services - Bíd Fíle #9211

Section 1- Company Description

ls accepted in each caft. Th¡s education flyer was mailed out with the utility bill and sent to eachsingle family residential customer.

On February gth MVD began the three<art distribution to each home. Along with cart delivery,residents received a guideline flyer, calendar for collection day, and a letter from Mid Valley Disposalproviding residents with information regarding new program and contact information for questions.

On June 10, 2009 MVD steff also conducted a contarnination analysis with the newly implementedresidential program. This required staff to lift each cart and view the materials that were disposed. Theprogram provided Mid Valley Disposal results of program ìmplementation, Staff was able to find targetinformation to improve the new program after four months of implementation.

MVD continues improve .the effectiveness of this residential program by providing information toresidents during events, mailers, school presentations, andthe contâmination program. With regards tothe contamination program, this program continues w¡th drivers leaving a contam¡nat¡on tag on the cartwhere unacceptable materials were identified and the driver delivers a detachable port¡on of the tag to '

an Outreach Specialist, which than follows up with the customer by sending out a letter and residentialeducation brochure.

The commercial program began with 175 bins and carts switched out within two weeks of our contractbeginning. The previous hauler supplied very outdated containers and no recycling bins or carts. MidValley Disposal delivered a new attractive refuse collection bin or cart to each business. Prior to deliveryof refuse service a waste audit was conducted to make sure the customer received proper services.

Shortly after switching out the refuse bins, Mid Valley Disposal then began the implementation ofrecycling services with each business with door to door site visits and waste audits. Each business wasinformed of the importance of adding recycling services along with the City non-compliance order. Afterdetermining the size container appropriate for each business another site visit was conducted with eachbusiness to provide education materials for employees. Education materials included laminated postersw¡th photos and bilingual text to post ¡n areas visible for employees. We also made sure to speak tobusiness owners and employees about the waste stream and materials that should recycle, ¿

MVD Outreach Staff continues education efforts w¡th each business by conducting quarterly site í¡sits tomake sure that recycling guidelines are followed and also to provide technical assistance as needed.Some of the business share questions and concerns? request office rerycling containers, and additionaleducation materials during site visits.

The multi-family pilot program implementation began September 1, 2009. MVD staff first met withapartment managers at two different complexes. They both agreed to part¡cipate with the multi-familyrecycling pilot program. MVD conducted a door to door distribution of education materials for eachtenant during the same week the 3-yard recycling bìns were delivered for each complex. Ongoing visitsarea conducted to monitor program on a quarterþ basrs.

(City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File #9211

'Section 1- Company Description

Mid Valley Oisposal also assisted the City to implement a Construction and Demolition recycling programthat will require contractors requesting a permit from the City's Planning Department to follow theCity's C&D ordinance.ln addition to beginning solid waste collection, the terms of the contract also called for the changeslisted below, allof which MVD successfully implemented.

/ New carts for each residential home (refuse, recybling and green r,riaste). Previous hauler provided

residents with refuse service only and residents used their own containers for the collection ofrefuse.

/ SFD recyclable materials, yard waste, and refuse weekly collection,/ Fully implement a commercial recycling program

r' Provide each business with new refuse bins or carts

¿ lmplement a pilot program with multi-family complext Fully implement a school recycling progra'm

/ Fully implement C&D program

/ Provide twice a year community cleanup events for collection of bulky material, green waste, and e-

waste

/ Complete annual reports on behalf of the City to Ce! Recycle

¿ Complete quarterly reports to Cal Recycle as part of the requirement of the non-compliance order

ln conclusion MVD successfully impleÅented a residential, commercial, and school rerycling protramfor the City of Firebaugh. These programs have proven success with the results of the Cal Recycle Annuaf

' Report calculated 2009 disposal amount decreasing to reach the diversion 6oal. As a result of thesuccessful recycling programs the City of Firebaugh is expected to be taken off compliance at the end tothe year.

City of Fresno: Residential Solid Waste, Recyclable Materíals and Organic Meter¡els Serviceç - Bid File tt9211

lmplementotion of Mulli.Fomily Recycling Progrom

Scope

¿ lmplementation of new program for Multi-famiþ åsidents'/ Education efforts¿ Multi-Family Recycling Program technical assistance

Account lnformation

3,038 MtD Units

Transition 5ummary

On Novernber 2008 the Department of Conservation granted Mid Valley Disposal a total of Sg5,57gthrough the Multi-Family Grant. The project charge was to full implementation of a recycling programwithin 27 multi-family communities located in the Westside rural area of Fresno and Kings County. Thegrant fund¡ng received facilitated the implementation of successful multifamily programs, which arecurrently proving effective. Such ímplementations initiated in the beginning of the year of 2009 afterreceiving the grant amount. The financial assistance was fairly dispersed throughout the givencommunities

lmplementation consi3ted of properly educating the inhabitants regardless of age range. Guidancematerial, along with frequent authentic interest in making the multifamily programs progress weresupplied by MVD. Primarily, MVD found it essential to meet with the multifamily homes' managers anddiscuss various aspects of the program implementation. Two important factors were available space forcontainers and cooperation. We wanted to reach an agreement for proper placement of the bins in toamplify chances of program success. MVD informed managers of its ability to provide technicalassistance, ongoing educatlon, and personally deliver door-to-door guidance material along with packetsof col lateral materials.

lntroductory packets and indoór six-gallon containers were distributed, to aide in the increase ofresidential participation. Visual guideline flyers which were translated in English/Spanish were helpful aswell, as were refrigerator magnets with colorful pictures. These items helped to raise awareness andidentification of household recyclable materials. lncentives were also included in the introductorypackage, such as reusable water bottles, which were made from recycled material. Because mosttenants work duríng the day, MVD tried to find the most convenient t¡me to schedule a formalpresentation to provide verbal guidance and use this t¡me to answer any pending questions on behalf ofthe residents.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File f9211

Section 1 - Company Description

MVD strictly enforced the routine audits which are currently still a part of its program end provideadditional assistance upon request. Since implementation, a total of L42 site visits have beenconducted, along with four presentations. MVD also participated in two events held by the multi-familycomplexes.

MVD has found education to be a tey f".Ao, in creating a sustainable recycling progrem. MVD faced thechallenge to change the negative perception that ä recycling program is creates inconvenience.in amulti-family comrnunity, Apartment managers seemed to th¡nk recycling bins could be used es an exträgarbage bin. Managefs were also concerned of the increase in scavenging created with placement of arecycling bin. Once apartment managers learned the program was free and'MVD was going to providecustomized bins to reduce contamination and scavenging, along w¡th the ongo¡ng free education andtechnical assistance the Company gained their support to begin implementation. The recycling bin labelscovered half of the space of the front bin, were attractive, and showed tenants the acceptablerecyclable materials before they disposed recyclables. The unit recycling container was also an incentivein that it provided perticipants with a container that was small enough to place on their kitchen countersto fill up with recyclables before disposing in the collection recycling bins.

The multi-family recycling program success continues with MVD staff readily available to managers inneed of technicalassistance. MVD staff visits each of the participants on a regular basis. Staff attendsevents held by apartments and also is working towards implementing a recycling club with childrenliving in the multi-family communities. These efforts ensure the multi-famiþ recycling program toreduce waste and increase recycling efforts annually in each of the participating communities.

City of Fresno: Residential Solid Waste, Recyclable Matefials and Organic Materials Services - Bid File f9211

Section 1- Company Description

I Compony Description

MVD has only one item to report per the ßFP request in 51.4 - lnformotion Regording Litígotion,Regulotory Actions, ønd Poyment of Liquidoted Domøges. On November 10, 2008, a cítation was issuedto MVD by the Air Resources Board for failure to have the proper paperwork available pertaining to theAgenqy's smoke test report¡ng on two of its forty-eight vehicles. Even though MVD was later able tolocate the necessary documentation for the ARB, the Agency would not revoke its totäl fine of $8,OOO.Hence, per the order, MVD paid S6,OOb to the ARB, $1,000 to the Perelta Community College District,and $1,000 to the California Pollution Control Financing Authority.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Serv¡ces - Bid File #9211

1.5 FinqnciolStqlements

Please note that MVD's audited financial statements are included under separale cover. See theenvelope marked Finønciol Støtements.

tlnoncing Plon

Please see the letter from Union bank on the following page. MVD has banked with Union Bank for thepast seven years, As indicated, Union Bank willfinance the entire asset list assoc¡ated with this project.MVD will pay for the signing-fee, discussed in the Cover Letter and Executive Summory, and start-upexpenses with cash.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File fl921l

Section 1- Company Descriptíon

. It unronBank

' Octobcr 5, 2012

Mid.Valley OisposrrlMr- Jo^reph Knlpoliofl.Vice Prcsident &, Gcnernl Mnnager15100 lt. Jensen ÂveKcrmnG €Â 9Jó10

Rc,l Ci$ of Frcsno- RFP f,rr ne\Ã'drrntñça

Duar Mr. Kulpakofli

tÀrc lonk forn'nrrl h1 lt¿ôrßinP.r¡'¡¡ltl'ou or¡ thc linlncing rer¡rrcst lor thc ncw Cil.r,of Frcsn¡ cndl*ci,

Ve4' Tnrl-l' Yours,

I/NION U¿\Nl(. N-¿\-

Virc Prrsi¿lcn¡

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File f9211

Section I - Company Description

l.ó Key Personnel

'The objective of this section is to provide the City with sufficient background information on MVDrnanagers who are responsible for executing the scope of services ¡n strict compliance with the RFP andfinal Agreement Not only will they meet the stâted requirements, but they intend to exceed the City'sexpectations. MVD sets foñh the credentials and reputable standing of these individuals in the industryas human collateral in exchange for the opportunity to provide the City of Madera with solid waste andrecycling seruices that:o maxirnizediversion/minimizedisposal;o maintain exceptional standards for customer service;o provide high quality service at highly competitive rates;o comply fully with all State recycling-related leg¡slat¡on,

including recent/emergent legislation such as AB 341, AB32, and AB 818; and

o that respect the State's goal of resource conservation andassociate waste stream management hierarchy of a) wastereduction; b) reuse; c) recycling; d) transformation; and e)landfilling.

MVD recognizes that establishing a successful relationshipbetween the City and MVD management is extremelyimportant. Therefore MVD only recruits and retains the mostqualified individuals for all positions, Key personnel are alsoheld fully responsible for generating productive workingrelationships and accurate reports and updates to C¡ty staff in a

manner and on a schedule acceptable to the City.

ln addition to the key personnel described throughout this section, MVD notes that existing drivers andhelpers are critical to a smooth transition and commits to hiring and fully training to MVD's highstandards all qualified workers displaced due to the privatization.

As is demonstrated by the letters of acknowledgement from MVD's other jurisdictions included with theCover Tronsmiffo,, MVD has the ability to implement and manage'operations that reflect a strongunderstanding of State recycling mandates and trends, ongoing operational excellence, and outstandingcustomer service.

Key personnel are conveyed in the Orgonizotion Choft on the following page, which is followed by theirindividual biographies and current responsibilities-

"Mid Volley Disposol is a good corporote

c¡tizen. The l¡rm and its employees orcoctive in our community, toke a leoding

role in our Chomber of Commerce qnd ore

supponive ìn our schools. MVD is o locolly

owned ond operoted compony; reody toserue the centrol valley- Their ownership

snd investment ¡''s in t/re centrol voiley ond

their growth will benefit our

communitíes."

Roy Monfredi,C¡ty Manoger, Kermon

City of Fresno: Residential Solid Waste, Recyclable Materials and organic Materials Services - Bid File #9211

MRF Operations

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Malerials Services - Bid File f9211

Presídent ønd CFO

Jay Kalpakoff559-843-2467 ext 102

Biography

Jay began working in the recycling and solid waste industry in los Angeles in 1972. He owned andmanaged a hauling company for over 20 years pr¡or to relocating to the Central Valley and establishing .

Mid Valley Disposal. His knowledge of the industry and dedication to staying in front of regulatorychange has taken MVD from a one-truck operation (1997) to a more than 75-truck operation.

.Poiilïon iirf,e Ëïiod

1997 - Present

Key Resþonsibilitles

/ Oversee all financial obligations including: CPCFA

financing, banking covenants, loans, andequipment leases.

r' Manages day to day finances including: cash flow,investments, payroll obligations, billing andaccounts receivable.

¡ Provides vision and guidance relative to MVD'soverall direction.

,/ Participates as part of MVD's senior managementteam.

City of Fresno: Residential Solid Waste. Recyclable Mãteriêls and Organic Materials Services - Bid File #9211

n'

-

Section 1- Company Description

Vice President and D¡rector, Eusiness DevelopinentJoseph Kalpakoff559-843-2467 ext 103

BiographyJoseph manages all of MVD's municipal contracts and is responsible for implementing all municipalrecycling and organics programs, He plays a key role in recruiting and retaining the best employees,maneges public relations, and ensures compliance w¡th all regulating agencies..Joseph keeps currentwith changes in erivironmental law both locally and at the state level. He provides AB 939 reporting toseveral jurisdictions MVD serves.

lmplementation ExperienceJoseph attends pre-bid meetings and oversees all RFP processes. lf selected, Joseph assembles andoversees the implementation team, requiring accountability from the team to ensure stricl adherencewith contract requirements and jurisdiction expectations. Joseph works side by side with eachdepartment manager during implementation to ensure the accurac"y and timing of each start-up task,

Time Period Key Responsibilities2006- ¿ Recently implemented new City of Fresno exclusive

Current franchise including re-routing, new employee transitions,and contract management.

¿ Designed and developed MRt, Transfer Station, and newcorporate offices.

¿ lmplemented Fresno County exclusive franchise, re-designed all routes to include use of the MRF and transferstat¡ons.

r' Procured the City of Kerman contract and acquiredFirebaugh Disposal.

/ Administers and oversees 13 exclusive solid waste andrecycling contracts since 1999; ensures compliance.

Position

MVD 2001-2005Eusiness Development,

Munícipal ControctMonoger

Procured municipal contraqts, strategized service territory,and impfemented solid waste services.Successfully won 5 municipal contract RPF's.

Negot¡ated all contracts, pricing, and managed allimplementations.

MVD

Operotions Monoger1-999-2001 r' lmplement City of Avenal contract and assist in developing

and implementing recycling programs as directed in a non-compliance order.

¿ Responsibil¡ties iniluded: Budgeting, human resources,oversight of daìly collection operations, administer safetytraining and associated documentation.

EducationBachelor of Science, Arizona State University, Mass Communications; Minor, Business Administration

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File fl9211

Section I - Company Description

lqff Prof¡leVice President, Operations

Roy Mendrin :

559-843-2467 ext 104

BiographyRoy began his career in the solid waste industry in Fresno County in 1980. His market knowledge andexperience in operations has been essential in developing MVD business. He overseeb all dailyoperations, including commercial and residential routlng, construct¡on and demolition contracts, andpersonnel-related matters.

ifuiä p-Ëijiit - Key Íieîpðäsíu¡l¡t-¡ei1997-Current '/ Recently procured 20 frontloader collection vehicles

form the City of Fresno and developed preventivemaintenance program for ING trucks.Manages all aspects of our fleet maintenanceincluding: equipment acquisition, expenses, vehiclemaintenance progiams, and.container maintenance.Oversees day to day operations in our shop includinghiring and managing mechanics.

Golden Statê D¡sposal, 1980-1992Owner

/ Owned a small fleet of collection vehicles providlngservice in unincorporâted Fresno County.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - 8id File #9211

Stoff ProfileOperotîons Manoger - Materiols Recovery Facility

Jonathan Kalpakoff559-843-2467 ext 106

BiographyJonathan's career ln the solid waste industry began in 1992 when he began working for his fathe/scompany in Móntebello, California. He started at Metropolitan Waste Disposal as a driver and quicklyfell in love with the industry. Through his 20 years in the industry, he has been involved with everyaspect solid waste. He now works at Mid Valley Disposal as a MRF manager and is involved in every partof the day-to-day operations of the MRF, including hiring employee retention, and equipmentacquisition. Since Jonathan has become manager of MRF operations, he has been able to maintain a

near flawless CalRecycle inspection review record.

Time Period ' key Respons¡Èil¡t¡es

2005-Present ¡ lnvolved in construction of MRF/ Oversees green waste, compost, and biofuel¿ Productions and marketing/ Oversees hiring & employee retention of MRF,

as well as all other aspects/ Monthly reporting to LEA for diversion numbers

and tonnages,/

jurisdìctions

Product marketing for export and importFinding sustainable end users for recoveredrecyclable materialsMa¡ntain good standíng with all local

Position

MVD 1997-200s ¡ lnvolved in the training of employees¡ Welded, maintenance of bins/ Drove t/L,S/L, Roll-offtrucks¡ Scale house operations/ Equipment & truck acquis¡tion¡ Truck Ma¡ntenance

CrownShortloadConcrete 1994-1997Company

r' Owned and operat€d all facets of business

Orange Disposal 1993-1994 / Operated Roll-off trucks/ Scale house operationsr' Operated buy back center at transfer station

Metropolitan WasteDisposal

1992-1993 / Driver

City óf Fresno: Residential Solid Waste, Recyclable Materials an'd organic Materials Services - Bid File #9211

Stoff ProfileOperations Superuisor - FresnoSteve Pivovaroff559-237-9425

BiographySteve grew up in the waste and recycling industry working at his grandfathe/s business in SouthernCalifornia. Since 1995, Steve has been working full-time ìn the industry. He has held various positionssuch as Helper, Driver, Baler, Weigh Master, Dispatcher, Supervisor, Operations Manager, and has evenbeen a business owner himself. Steve brings a vast knowledge of waste collection, safety training, andfouting expeÍience to MVD.

lmplementation ExperienceDuring the Fresno commercial stait-up, Steve conducted several four-hour training sessions w¡th all stãffto ensure proper safety and personnel placemeóts, which has resulted in excellent employee moraleand quality customer service. He rerouted driver routes to create a balanced work week for all driverc,which has also reduced truck traffic and MVD's carbon footprint. Steve also performed over 200 hoursof pre-implementation surveying of account requirements, including mþeting with customers andconducting safety analyses. During transition, Steve conducted daily meetings with MVD employees toreview daily assignments and address questions and concerns, which created trust amongst newemployees, boosted customers' service awareness, and facilitated ongoing communication throughouttransition and beyond.

Tiine Period key nesponsibilitiesZOLI - Present / Oversees collection operations in the City of Fresno.

¿ Conducts safety meetings and oversees monthlysafety incentive program.

/ Routes customer accounts to optimize safety,efficiency, and productivity.

r' Manages dispatch operations./ Trains new employees in Encore software

application.¿ Performs safety route audits.

Position

Diversion SolutionsPresident

2006 - 2011 r' Respons¡ble for accounts payable and receivable,¡ Trained new drivers in equipment safety.,/ Managed customer service and dispatch.¿ Designed company website an SEO for new business../ Updated company software to improve 48939

tracking.HaulAway Rubbish.Ad ministrative 5u pport

2005 - 2006 Performed lT upgrade.Managed disposal and dìversion tracking.Rerouted over 6,000 stops, improving seru¡cedelivery.Assisted owners in daily operations.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bìd Fîle 19211

Section 1 - Company Description

Steve Pivovaroff559-237-9425

Ê-úPositionFederalDisposalOperations Manager

r¡,ireïãi¡ã¿-''l(eiRËpã'ns¡Èl¡lñi - __----

ZOô¡ -zoos t Oversaw collection operaäons in the City of Tustin./ Prepared City reports for 48939 compliance and

reporting.

'/ lmplemented multi-family recycling.r Managed accounts receivable and collections../ Performed safety meetings and safety incentive

pfogram.

City of Fresno: Residential Solid Waste, Recyclable Mater¡als and Organic Materials Services - 8id File #9211

37

-

Section 1- Company Description

ProfileRecycling and Commerciol Technicol Assistonce Monogerlvette Rodriguez559-843-2467 ext 115

Biographylvette has over nine years of experience in the recycling and solid waste industry, and began her careerwith the City of Fre3no recycling program as an education specialist. ln 2004 she came to work for MVD.Some of lvette's accomplishments include producing a successful grant proposal to the Department ofConse¡vation for over $lm for a state-of-the-art sort system in 2005. ln 2006 she assisted MVD bywr¡ting a business plan that enabled the Company to receive a loan from the CIWMB RMDZ loanprogram.

I mplementation Experiencelvette develops and implements education and outreach plans and trains recycling specialists associatedwith new contracts. She has developed a tracking system for site visits, events, presentations, and pilotprograms in order to report act¡v¡ties to municipal clients. She develops reporting formats based onmunicipal customer preferences. She identifies civic and business groups and proactively reaches out inorder to get MVD involved. She permanèntly resolves customer concerns raised during implementationresult¡ng in a decrease in phone call volume and an increase in customer satisfaction.

Posit¡on Time KeyResponsibilitiesPeriod2004 - ¡ Developed the outreach program for 6p00 new commercialPresent customers.

/ Manages four Outreach Specialists/ Manages recycling programs within 11 communities/ Writes and administers grants./ Provides liaison between city and State agencies/ Manages certification for processor lD and recycling center lD-

and other certification required by Division of Recycling/ Pfocess claims for processor and recycling center¡ Coordinates and presents safety materials for office staffr' Completes annual reports for 7 furisdictions/ Report landfill tonnage to Fresno County Avenal Landfill¡ Writes quarterly newsletter for Fresno County customers

quarterly¿ Writes quarterly newsletter to City Managersr Reports to Council Members regarding city recrTcling programs/ Coordinates special events, annual luncheonsr' Manages e-waste collection program,/ Attends Fresno County MOU committee meetings on behalf of

6 jurisdictions

Coordinates within each iu risdiction.

Education Bachelor of Science, Environmental Health Science, Fresno State University

City of Fresno: Residential Solid Waste, Recyctable Mater¡als and organic Mater¡als Services - Bld File tf92t1

38

-

Section 1 - Cornpany Description

Marketing DirectorAndrew Meza

559-843-2467 ext. 126

BiographyAndrew's career in the solid waste ¡ndustry began in 2009 when he started an internship with theCounty of Fresno in the public works and plannìng department, where he assisted in the creation ofefficient databases and other projects, After interning with the County and graduating from tresno StateUnivenity, he came to MVD where he designs and writes copy for all educ¿tion material, as wellperform website maintenance and updating, and other such responsibil¡ties.

lmplementation ExperienceDuring the Fresno commercial services implementation in 2011, Andrew assisted in the production ofthe submitted proposal, including the development of graphics elements and acguiring useful data andinformation. He managed the development of and created all multi-lingual marketing material for theFresno project, including multi-family, commercial, and restaurant recycling brochures, introductoryrecycling guides; multi-lingual organics guide; and 48341 informationalflyer. He updated MVD's websiteto include specific information for the Fresno contract, including bill pay. MVD's website hosts nearly2,000 visitors each month and over 2,000 online payments have been made.

Time Period Key Responsib¡lities2010 - Present / Design all educational and promotional materials.

¡ Design print ads and MVD presentat¡ons.

, ./ Add graphic elements to MVD proposals and reports.¡ Assist with public outreach activities as needed.¡ Help ensure MVD compliance with municipal

contracts.' ./ Assist materials recovery facility with record keeping,

including filing documents, maintaining daily weightlogs, and maintaining files and compiling reports andinvoices in DORIIS

Education Bachelor of Science, Business Administration, Marketing Emphasis, Fresno StateUniversity

Pos¡t¡on

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File #9211

Section 1 - Company Description

ProfileCustomer Seruìce dnd Accounting ManøgerLisa Hdm559-843-2467 extLLT

BiographyLisa has worked in the recycling and solid waste industry since 1987 in various positions, such as a

Frontload and Roll-Off Dispatcher, Transfer Station Supervisor, Office Manager, Billing Manager,Customer Service Manager, and Corporate LevelTrainer.

lmplementation ExperienceLisa is responsible for the accurate data tiansfer from othei haulers/city account databases in order tobuild MVD customer account records during transition. She is responsible for training existing and newcustomer service representatives so they are knowledgeable about the new iontract. Lisa findspermanent solutions to customer concerns as they arise. Since her employ with MVD she hasimplemented seven new municipal contracts and has upgraded MVD's customer management software.

Time Key ResponsibilitiesPerlod,

2004 - ¿ Bills frontload and roll-off accounts.Present, r' Malntains customer credit maintenance

¡ Distributes program information and other collateral materials./ Manage, train, and support customer service representatives.

Waste ManagementCorporote TroinerSeruice Machine

Waste ManagementBìlling MonagerCustomer Service

Manager

2001 -

2003

1998-2001

lmplement and train company process and standards to localdistricts from Alaska, Washington, California, and Arizona todeliver high levels of customer service.

Bills frontload and roll-off accounts.Maintaíned customer creditD¡stributed program information and other collateral materials.Managed, trained, and supported customer servicerepresentatives.Garnered position as corporate trainer.

Western Waste-USAWasteTransfer StøtionSupervisor

L997 -

1998 '/Oversaw day to day Transfer Stat¡on OperationFulfìlled and prepared county and state reportsReceived and trained staff in Hazardous Wasterequirements

'{ lmproved recycling diversion rates from \5% torecognizing new streahs of diversion,

response

38% by

City of Fresno: Residential Solid Waste, Recyclable Mater¡als and Organic Materials Services - Bid File #9211

40I

Customer Seruíce ønd Accounting Monager - ContinuedLisa Helm559-843-2467 ext 117

Western Waste-USAWasteRoll ofl Dispotcher

1987-

1997Routed 15 rollofftruck dailyTook all roll-off calls for scheduling existing and new customersBilled roll-off customersPrepared all roll off productivity reports.

WesternWaste-USA 1987-1997WasteFrontload Dispatcher

't Dispatched 45 frontload truck.¡ Maìntained frontload routes, weight tags and productivity

reports through data entry.Fielded customer service

Education Associate of Arts - Social Science

¡ rì l¡t'.

City of Fresno: Residential Solid waste, Recyclable Materials and Organic Mateiials Services - Bid File f9211

Section 1- Company Description

Compony Descdption.1.7 Lqbor Agreemenls

There are no labor agreements to report.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Mater¡als Services - Bid File #9211

42I

Section 1- Company Description

1.8 Locol PurchosingMVD has a strong preference to tránsact business locally to as great en extent as possible. The Company

has spent an impressive $3-4 milllon with these Fresno businesses.

Fresno Businesses

[444 s * gç pi ¡ g S e_rv,1ç_9_ !¡ç_s¡of¡vi¡e.!9_n-eAce Compressor Equipment Frontier Fastener

.J

G&H Diesel Service-+#Alert-O-Lite Gordon lndustrialSupply

i¡=''_:::---lAllv"llgy t -- ._

Hicks SiEnNttãvT¡"q8:Alta Lift Jorgensen Co.

-

*f -+Leislã Electr¡c. lnc. I

Best Weight Scale Co. arts

[Ëqæ-qf-Ftrrìõ-.I ----::; --::.l ::Bright's l-aundry Service NVB Equipment, lnc.

ffi¡ãjEsoñîr"¿-_ -T. _-::r@n ::___--.--: :--'"-: ":

Bruce's Auto Parts Prìckettes

[Qr,!õïd¡FibïìõË _ -l__lpÏõ*lõ.i-"ì,_r'-.._l

California Apartment Association, Fresno Ruckstell's Sales

fcál¡id'¡iá in¿uitiiainuuËéi' - -- lT - " - ññåf cõñ-liîuct-i.rntõiþoiãi¡oñcenirai cai¡fòrn¡a HlsÈãnic t¡amËbi - "- - saladino s lñ;. -- . ' - -

þer,t'ãiirÈptv -. - - -:-"-l---_

-: -s"¡lòïõr:L¡tio$iiuci< :' :

Central Valley Overhead Door 5au nder's Autom atic Seruice

Electric Motor Shop Valley Rain Gutters

EËn-o c¡ãñ-rãi õf!öõfþ::^: * '_ ^ " v"rþt r"'ü.[ pj,äT:*Fresno Mobile Radio Wholesale Equipment

-FiesnoÍnic-t cuni.iî I +

City of Fresno: Residential Sol¡d Waste, Recyclable Mater¡als and Organic Materials Services - Bid F¡le #9211

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City of Fresno: Residential Solíd Waste, Recyclable Meterials and Organíc Materials Services - 8id File f9211

44II

Technical Proposal for Collection Services

2.0 Overview

MVD's primary focus in formulating this proposal is the delivery of a measurable and sustainable shifttoward greater diversion from the outset that stead¡ly increases throughout the term oÍ the Agreement.As the City's commercial contractor in Fresno's South Distr¡ct,.MVD's familiarity of Fresno, its trafficpatterns, demographics, and City administrative processes combined with MVD infrastructure will allowthe City and MVD to focus efforts str¡ctly on implementation in MVD's typical consultative andproductive manner. A new contractor cannot offer this to the C¡ty.

MVD takes the City's diversion objective of 90 þèrcent or' *r.r,", landfill diversion by 2025 seriously, andto address this MVD will provide collection services with accompanying education and outreachprograms that are proven effective and refreshed annually or as needed in order to drive up residentialrecycling participation. As was the case with its Fresno commercial collection servlces implementation,MVD makes good on its proposal initiatives, as indicated by the Fresno implementation scorecard,below.

Time. and time again MVD has found that key to successful ramp-up and continued reliability ofcollection operations is excellent operational oversight. MVD principals will work with City staff tocomplete and execute lhe lmplementotion P/on included in this section and will constantly monitor theprogfess and performance of MVD's expert operations team to ensure all milestones are met onschedule.

Fresno I rfl plemêntâtiorr Track Record

MVD's implementation track record in connection with'the roll-out of comrnerciat services ln Fresno is

an example of the Company's commitment to doing what it says it is going to do, and more, Thefulfillment of MVD's commitment with respect to the commercial contract is documented in the chartbeginning on the following page,

C¡ty of Fresno: Residential Solid Waste, Recyclable'Materials and Organic Materials Services - Bìd File #9211

Comm¡lmenl

Avä¡lâble Seruices Flyer

Exploins recycling seruices by business

ty pe for bu sinesses, mult¡-Íom ily,rcsaouronts, and food woste rec¡tcling.

Food waste Flyer

lnt€r¡or Posters end labels

Customer Correctlon fags

C¡ty of Fresno N4ult¡-Med¡a andAdvertis¡ng

Public Education Plân-Tra¡ning Meet¡ngs

Bus¡ness Associàt¡ons Meetjn gs

Quarterly Newsletter

Emþloyee Training

Post/Refresh Éducational MäterialsCommunity Relat¡ons

Quarterly Customer Service Meeting5ervice Complaints

Section 2 - Technical Proposal for Collection Services

Result

f\4VD deslgned and produced a brochure for businesses which includes offlces, stores, end retail, manufactur¡ng,and industrial. Brochures spec¡fically for restaurants and apertments were also developed. Brochures are printed¡n English, Spanish, ãnd Hmong.

MVo designed and produced a ffyir råiiAing tood waste composting/recycllng. The flyer ls pr¡nted ln Engl¡sh,

listingnlaletiql! qçgept94.in rerycling bin.MVD des¡8ìed and produced a Rerycling Customei Contaminat¡on W¿rning label. The label is placed on therecycling b¡ns when the dr¡ver not¡ces 25% contamlnâtion. A copy of the label wlll be delivered to MVD'SRe€ycl¡n8 Spec¡al¡st for tollow-up.Advertised service informat¡on through Chambé¡ e-blasts, Fresno PD Gólf Tournament Fu-ndrãisei/everit bæklet,Cal¡fornia Apartment Associatiön Mark ol Dist¡nction Award event booklet, Greater Fresno events, and FresnoMetro Black Urban Leadership conference, Seru¡ce ¡nformation is also published on MVD's webs¡te, throughb¡ll¡ng statements and powèr point presentations during workshops.

jpJ4f!,!S Jl'gE.- *-- - - ",-..MVD desiined and produced a poster w¡th generàl recy-ling ln

MVD provides continuing eduiat¡on for CSRs emphes¡¡inC.City!_e.ry!ggsg!d:f:,_ _-.-- __Complaints are resolved by MVD w¡thin 24 hours of receiving complaiñts. _ _

MVÐ is working closely w¡th the Fresno Metro Black Chamber to organize a workshop to provide businesi ownersw¡th tools to ¡mplement successful recyEling progräñs. MVD's Recycl¡ng Speciâl¡st has also presented toCal¡fornia Apartment Assoclation members and Fresno G¡.eeter Chambers prov¡d¡ng ¡nformat¡oñ to assist withrecyrling effortsMVD has become a member of the Fresno oreater cham-¡er, ceñtiai-CjifãiñË-n¡ipãn¡c ctrìiñEõEiEñãBlack Chamber, C¿l¡forn¡a Apartment Association, and Fresno Downtown Pårtners. MVD has ättended variôusmeetings and spec¡al events coordinated by each businesLqs,soclatìgll _ ! É _ É_-s _MVD ma¡ls out ã newsletter at the end of each quarler. The newslette. prov¡des lmportaht informat¡on aboutrecycling at work and collectlon seruice ¡ñformat¡on.MVD's outreach speciaiist has performed traiñins seisìänl är öi*eËñiãiìãn-iärïe-na-äií þ.ãe-ffi aiTbusiness owners during chamber luncheons. As of Oct. l, 2012 MVD has conducted.4_0 prese¡ta!io_ni.--Custo-mers,mäy d.-ownload,service brochures and flyersfrom MV0's websltê.MvD has attended ¿o eveÀis ai or october 1, 2oiz anJ suppo.[âa ri'Ë.aíìðñm[rit!Ë-*_Çffii-1nÊ&Ë=

City of Fresno: Residential Solid Waste, Recyclable Materials end Organic Materials Seruices - 8id F¡le 119211

46

-

11,l'rì ,i

,1rl{l,i,', '11

¡ ,1

Section 2 - Technicâl Proposal for Collect¡on Services

J i'rì 'i

Commltment

Customer Web-s¡te PaymentsCustomer Service Phone Logs andPerformance Statist¡csCustomer Spec¡ãl & Bulky pick upsefvtcesNew Starts

lnvo¡ced TransactionsMin¡m¡zation of SpillsEvent Recycling Conlainer Donâtlôns

Sponsorsh¡p of C¡ty and Business

Organizations/Events.

, Payòents can be made vla MVD'5 webslte., _Phone Logs for all incoming calls are available and reported monthly and quarterly to the City,

ustomers äre prov¡ded with Special and Bulky services when requested, Services are reponèd mont

New sterts a-re proviaeairittr . .ontr¡n"i *ätrì ¿"vr år r-tañi-neìã*-¡.ã-. cfrñ, c¡uen a tist monthty of aìäã

cityìiproviaeú witt' "

iúiing ûy såä,¡ce cåãä ótät itvoièãJirãi-sactiõffif,tñf,'Collection veh¡cles carry e.qu¡pment to clean up spilled-alq s-c_qFeJed meterialsMVD hasincreased d¡version oisoii¿ *aste during eventiuiãã'üe;¡ñã'rú-añiË;'Ë¡ËEìlfori-vrlr e-Gñihitd:iFresno Chaffee Zoo, Selland Aren¿, var¡ous downtown events, the City of Fresno Chrlstmas Celebration event(parade and Chr¡stmas tree.lighting).MVD has created partnerships and supports êvents thet ere ¡mportant to the commun¡ty.

I

C¡ty of Fresno: Rèsldential solid Waste, Recyclable Mater¡âis and organ¡c Matetials Services - 8id File f9211

Section 2 -Technical Proposal for Coflection Services

Complementary enhancements have been thoughtfully designed specifically to Fresno demographicsand are based on MVD's extensive local experience and successfuJ diversion track record. Theseenhancernents are described in Section 3.

ln addition to implementing programs to reqlcle as rnuch waste as possible, MVD will continue itscollaborative efforts with the City of Fresno to promote effective waste reduction and reuse activities.

Operations Base

MVD's Fresno operations base is located at the address below..This facility also houses Fresno customerservice representat¡ves and operations/routing supervisors. Should MVD be awarded a contract forresidential collection services in Fresno, the facility below will accommodate the additional personnelassociated with this contract. ln addition, MVD owns 8.5 acres adjacent tothe Fresno facility; this landwill be developed for truck parking and storage if awarded the residential franchise. Other MVDpersonnel and its transfer station and material recovery facillty is located at its Kerman facilìty, addressalso listed below.

Fresno Facility

3444 W. Whitebridge Road

Fresno, CA 93706

15300 West Jensen Ave.Kerman, CA 93630

MVD's foundation is a model of continuous improvement which is evident throughout its operations. Tothis end, the Company is in the midst expanding its Kerman propefty to include integrated organicsmanagement facilities, including covered composting operations and anaerobic digestion (AD). Thecomposting facility will be operational in August 2013 and the AD portion of the facility is anticipeted tocome on line in mid-2014. Details are provided in Section 2.3.2 - Organic Materiols Processing.

Operations personnel and equipment assocìated with recyclable and organic materials collectionservices will be run out of the Kerman s¡te, as the Company's processing operations are located there.lnformation and documentation pertaining to this site and site improvements are included in thissect¡on. Additional information.relative to employee/driver training and safety, quality assurance¡elative to collection operations, and MVD's routing approach is included at the back of this section in anAppendix - Collection Operations Standords.

MVD policies and procedures are compliant with all regulations governing employee relations and areEEO compliant.

City of Fresno: Res¡dential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File #9211

Section 2 -Technical Proposal for Collection Services

As per the RFP, MVD will procure City LNG collection vehicles and carts. The following information isplaced in this Overvrew to avoid redundancy since the same collection equipment will be utilized for allmaterials streams. Standard collection crew size is orie professionally trained drivei on all regularcollection routes and one driver and a helper on bulky item routes.

MVD will procure and use to service the subject cohtract, the nurnber of vehlcles reflected in the chartbelow by line of business and District. Because MVD is procuring and using these vehicles from the City,vehicle descriptions, typet cost, capacity, axle load, and age are not given here. This collectionequipment is considered standard.

As the City indicated ¡n ¡ts RFP, the savings due to the procurement of the City's discounted equ¡pmentreduced customer rates as reflected in Section 4 - Rote ønd Cost Proposol. MVD understands and agreèsthat the pricing for this equipment as presented in the ßFP does not include sales tax or any other taxesor fees associated with purchase of these vehlcles. I

Collection Method: Hard-to Service Areas

MVD has determined that specialized collection equipment is not needed for making collections in hardto service areas in tresno, either D¡strict, such as in narrow streets, courts, and alleys, The standardequipment noted in this section will be used on all routes.

Llne ofBusiness

Vehicle TypeUnitCount

North O¡strlct

Solid Waste

Recyclables

Organ¡cs

Bulky ltems

Total North

11 Heavy Duty

I Heavy Duty

7 Heavy DUW

3

33

Continued on the following poge.

City of Fresno: Residential Solid Waste, Recyclable Materials and Orgên¡c Materials Services - Bid File #9211

Section 2 - Technical Proposal for Collection Services

" South Olsr¡lct

Sol¡d Waste

Recyclables

Organics

Bulky ltems

Total South

Heavy Duty

Heavy Duty

Heavy Duty

t1

I7

3

33

Spares

Number ofSparesSporc Røl¡o: =159t

5

PetDist¡kt

Other

Supervisory

Service

5 light Duty

10 Per Distrlct

During contract negotiations, MVD will prepãre and present a vehicle paint¡ng and signing schedule tothe City for approval. This schedule will assure that MVD's new fleet will appear new and are marked asper City preferences within a reasonable timeframe. Until that time, MVD will apply attractive buttemporary vehicle signage to signal the transfer of collectlon activities to MVD. MVD will secure theCity's approval on the design of these temporary signs and will incorporate C¡ty messaging, if desired.

Vehicle Maintenance - Fresno Operations Yard

MVÞ will perform preventive and regularly scheduled ma¡ntenance aswell as any necessary repa¡rs on its collection vehicles, support vehicles,and containers at ats maintenance shop located at its operations base inKerman. The Company's comprehens¡ve preventative maintenanceprogram cornplies with, and in some cases, exceeds all federal, stateand local regulatory standards and manufacturer specifications. MVD iscommitted to maintaining its fleet in a fuel efficient andenvironmentally conscious manner.

MVD's Fresno facility consists of four vehicle maintenance bays and two container repair bays. Fourmechanics, two helpers, and two welders ensure that all proper ma¡ntenance and repair is completed inan efficient and safe manner. The staffing is structured such that there is one mechanic per ten truckswhich allows each member of the maintenance team to stay focused on excellence, quality and safety.The team also receives OSHA certified training. The Fresno facility houses 24 total collection vehicles andsix support vehicles, including two dedicated container delivery vehicles.

MVD's safety and compliance program is as comprehensive as its maintenance program, as described inlhe Appendix located at the'conclusion of this section. MVD is honored to say that its preventivemaintenance program saved over 30O hours of downtime in 2011.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File #9211

5o

-

Section 2 -Technical Proposal for Collection Servîces

MVD's comm¡tment to the environment is reflected in its recycling initiatives associated with themaintenance facility. The Company's recycling program is as robust in the maintenance shop as it is inits communities. MVD prides itself on achieving a level of excellence that has resulted in zero wastebeing generated out of its facility. Everything that can be recycled is recycled, to include:

¿ Motor and Hydraulic Oil¿ Oil Filters/ Antifreeze¿ Transmission Fluid/ Transmission Fllters¿ Fuel Filters¿ Tires./ Brakes¿ Batteries/ Metal Parts

Vehicle lnspection Reports

Key to the preventive maintenance prograrn is daily cornpletion of vehicle inspection reports, This isperformed daily by the collection vehicle's assigned driver and includes both a pre-trip inspection andpost-tripinspection. Driverscheckfluidlevels, lights,tiresandothersafetyrelatedareasoftheirtruckand indicate on the inspection report any defects or deficiencies-including any damage to the vehicle,found that day. Shop p'ersonnel review the report and check any items marked by the driver as beingquestionable or problematic. Mechanics then make any needed repairs before the vehicle returns to theroute.

Furthermore, each vehicle undergoes a through and comprehensive preventative maintenanceinspection (PMl) every 150 hours of seruice, This inspection is conducted by a trained and certified brakeinspector, according to USDOT requirements. The vehicle is inspected from the top to the bottom andthe front to the rear including, but not limited to; tires, air pressure, brakes, air systern, safety camerasystem, gauges, engine, cooling system, hydraulic system, batteries, road tested and general overallequipment operation. The vehicle is thoroughly lubricated and fluids sampled and changed if required.lf repairs are needed, all priority repairs are completed prior to the vehicle being returned to service;repairs that can be are scheduled to be completed at the next service.

MVD's 39-point PMI checklist and driver vehicle inspection report forms follow.

c¡ty of Fresno: Residential Solid waste, Recyclable Meter¡als and organic Materials Services - Bid File #g211

51-T

Section 2 - Technical Proposal for Collection Services

Trud( & Tr-â¡ldr MaírüentrcÉ Sátêty hrpcdbû Il¡låÂÞnlrnleÍlo r hspcccion dr Scgwkfad ds Ca,lîlonog Y TrBil¡B

MID VALLEY DISPOSAL

City of Fresno: Residential Sol¡d Waste, Recyclable Materials and Organic Materials Services - 8¡d File #92L1

Section 2 - Technical Proposal for Collection Services

Truclr ¿ tnndr Ma¡nlênancô Sâlaty lßgpedþn MonlenrniaÂlo ê lDspcoÉion dô Sêguridad d€ CâmlonerYTrûila!

24 .neCK tìreS.wneeE nuts stt¡ds, Cracl(ed. secure and lnflation trcAd24 :hecque de todas las llantar, tuercas, quebrAditas. El seqUrO, la lnflacion, V las ranUrasz5 låndnq bral(es.condlilon ånd adlustment75 rrenos de DarQueo'condicion e âtustmlento26 lmergensy stoppi4g s¡ntem-tabted, operabte26 rlstema Oe lrenor en emefgêCla-nombrado y operâble2t Reteõte atter toss of servlce air test antl27 Despues de escepe se atre - exâmen de tô tarnÞ8r8 anuZE ;h€ck steerlng gear and mountfng free lashZE fìeque el volanle yo montale29 iteerlns arms. draç tink and tie rod ends30 ilfth wneel cfrndiHon and mounHnq30 Iheque [a quinta ruedal1 rnng, snacKtes, ano u DolI tofque arms¡1 qrmoñguadores, aÞräzaderäs, Drazos y u.Þolts32 -necK trame. cross memDers cracK32 eouean el bastldor del vehlculo. miembro6 de cffzâdo. or.Fbraditasl3 fransmission, differential-mount¡ng and sealt3 -lÊcna v tfansmìss¡on volteFenclatse-fnontete v Seuos

)4 ¡fhe€l seals teaks, hydrautlc Þrake system leaks34 Derrame de sellos de llanta, demmes de frenos hidraut¡cosl5 ;lean unúer camaee35 -lmDaln debaloJö / Floor, Packer3637 Reglstratlon-motor carrier-lnsurance card37 istrâslon, tarjetå de permlso de carqador de vehichutos motorlzados ,tarreta de asequransa38 {âdiÖ- zwayJE Râdio- zwayl9 n[er, Lramps, LrgnIS. Ènq¡ne 5ücKef, uoor 5ücKer39 DPF filtro, abrazaderas, luces, etlqueta del motor, etlqueta de [a puerta

CiÇ of Fresno: ßesidential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File S9211

53E

Section 2 -Technical Proposal for Collection Services

DRIVER'S VEHICLE INSPECTION BEPORT

^¡åÉot(R€û eyn€o or FËDeatl4. rñloRcrâ¡ìãïs¡.FEryRFd,/t¡¡totús;

DATE:

tr KERMAN tr AVENAL N COALINGA

El ÏarpaulinE llresE Wheels and RlmsEÕther

lME: A.M.CHÊCK AI{Y DEFECIÍIE MM AIì¡oGIVÊ DËTA¡.S UNDER'NEMARKS'

ODOMETER HEADING

E HomE Lights

Head - StopTail - DashTum lndicalors

E MhrorsE uunerE Oil PressureO RadiatorE Fear EndE Hellectors 'E Safety Equipment

Fire ExtinguisherRefleclive TrianglesFlags-Flares-FusesSpare Bulbs & FusesSpare Seal Eeam

tr HitchE t¡nding GearEl L¡.ghts - AllE Roof[1 Suspension Syster¡l

P.M.

D Alr CompressorE Ai¡ LinesE BatteryE BodyE Btake AccessoriesE Brakes, Parkingt Brakes, SeMceE ClutohE Goupling DevicesE DefrostenlleaterE Drl'¿e llnsE EngineE ExhauslD FifthWl¡aelE Frame and AssemblyE F¡ontAxleE Fuel Tanks

TRACTOR/TRUCK NO.

TRATTER(SI NO.(SÌ

E Erake ConnectionsE BrakesE Goupling DevicæsE Coupling (Kingl Pinü Doors

E Suspenslon SlatemE SlafterE SleeringE TachograÞhE ÎæsE Tire ChainsE TransmissionE Wheels and FimsO WindowsE Windshield WipersE Other

Remerks:

E] CONDITION OF THE ABOVÊ VEHICLE IS SATISFACTOFY

ORIVEF'S SIGNÅTUFE:

E¡eovE oerec¡s conREcrEoEÀeov¡ orrecrs NEEDNoT BE coßREcrED FoR SAFE opERATloN oFvEHtcLE

MECHANIC'S SIGÎ\IATUßE:

DRIVER'S SIG¡{ATURE:

OATE:

DAIE:

ORI6IFIAL

Cíty of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File f9211

Section 2 -Technical Proposal for Collection Services

MVD washes its collection vehicles weekly, utilizing biodegradable cleansing products, high and lowpressure washers using a brush. Truck washings cornply with Best Management Practices governingstorrn water management.

Container Operations and Maintenance

ln addition to the collection cârts currently in service-which MVD will procure, MVD will maintain a

sufficient cart inventory during the term of the contract for replacements or exchanges.

Whenever a cart is delivered to a customer, regardless of the situation, it will be clean and in excellentworking condition. Whenever a broken cart can be repaired on route it will be both for maximumoperational efficiency and so that the customer is not inconvenienced, lf the caft cannot be repaired onroute ¡t will be exchanged on the spot and returned to inventory for repair or recycling. MVD repairs atleast the following broken parts: hinged lids, wheels, and axles. lt is the Company's experience thatthese items are the most common cart failures. Therefore, MVD will stock an adequate parts inventoryon its container delivery vehicle at all times. lf MVD discovers that the resident's cart is not broken butis in overall poor condition, another cart will be assigned to the customer.

MVD maintains a cart buffer inventory for exchanges and new deliveries of approximately five percentat all times. When carts arê delivered to customers they are in new or like new condition only, MVD willnot only purchase the carts placed out w¡th customers at the time a contract is executed, but MVD willalso purchase the appropriate quantiÇ of the City's cart inventory for exchanges and deliveries. MVD isaware of the City's cart purchase history and will procure supplementary carts for its inventory at theappropriate time.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Meteriels Services - Bid File #9211

55I

Section 2 - Technical Proposal for Collection Services

Technical Proposal for Collection Services

Z.t Solid Waste Collection

As indicated throughout lhis Proposol, MVD shares the City's commitment to zero waste through sourcereduction, reuse, recycling, organics processing and the value-added programs described in Section 3 -Proposed Seruice Enhoncements ond lnnovotions. ln fact, MVD has a pfoven track record of steadydiversion progiess in the communities it serves. MVD leaders track resource recovery trends and investin the right people, systems, and technology to ensure MVD customers are all tracking toward zerowaste.

MVD sees it as a primary responsibility to investigate the residential solid waste stream to devetop andenact a plan to shift more materials from this material stream into recycling and organics collectioncontainers. Once collection services have commenced and MVD customers are accustomed to MVDprocesses and procedures, MVD will perform a study of residential solid waste and present its findingsand action plan to the City to immediately begin facilitating this shift.

Solid waste collection seruices will be rendered in strict accordance with the terms and conditionspresented in the draft,4greement and to the City's and MVD's high service standards. As indicated in thesection Overuiew, MVD will procure City equipment, implement services seamlessly through theassumption of City equipment-collection vehicles and carts. MVD will also continue servicing routesper the existing service schedule to minimize impacts to customers. No specialized equipment is neededto make collections in challenging seruice areas, such as narrow streets, courts, and alleys.

Residential solid waste colleciion wilt be accomplished with a crew of one highly trained andprofessional driver and the automated sideloaders MVD procures from the City. Per the RFP request, thechart below indicates MVD's daily productivity and tonnage assumptions for solid waste.

Solid Waste Program Assumptions

Solid Waste Routes/Dayoays/Week

Customers/Day/Route

Hours/RoirteLifts/Hour

Tons/Route/Day AnnualTonsPtojec,t Avercqe

Nonh Dlstr¡cl 11

56

16s

22.9

South D¡str¡ct 11

5

r,025 6

170.85r,24t

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - 8id File #9211

Sect¡on 2 - Technical Proposal for Collection Services

Flow of Sol¡d Waste

As per the RFP, MVD will continue direct hauling residentialsolid waste to CARTS and then to American

Avenue Landfill through July 1, 2014. Aitar 2O14, MVD proposes to cont¡nue utilizing American Avenue

Landfillfor Fresno residential solid waste.

1)

2l

Driver Activity Sequencing

The driver ectivity seguence for manua/automated cart collectionis:

The drìver arrives at the service address and cheèks the routesheet for any notes pertaining to that customer.The driver checks for any possible obstructions to making thecollection, and checks mirrors and cameras as a safetyprecaution.

3f The driver utilizes two controls to make the coltection: the firstto position the truck arm such that it is properly aligned to thetargeted cart; and the second tó engage the grabbing mechanism.

4) The driver then returns to use of the'first control to lift, empty, and return the cart to its original' posit¡on. As the cart ìs be¡ng emptìed, the driver checla cart contents for hazardous/unperrnitted

wastes,5) After the cart is replaced, the driver checks the serviced area to ensure ¡t is cleâr or any litter.5) lf the collection is made without incident, the driver continues to the next stop on the route sheet,7l Once the truck has reached capacity or the drlver has concluded the route, the driver drives directly

to the transfer station (garbage), MVD's materials recovery facility (recyclable materials) or MVD's¡ntegrated organics processing facility (organic materials). lf the driver is not finished makingcollections, s/he return to the route to complete those.

8) lf unpermittable amounts or types of waste are present, such as hazardous waste or recyclable

materials present in the solid waste cart, MVD's drivers will issue either a Corrective Action Notice orNotice of Non-Collection depending upon the severity of the improper set out and/or the frequencyof occurrence per customer, MVD's goal is to provide effeclive education to facilitate the City's zerowaste goals.

Thís above information perta¡ns to all materials streams and will not be repeated in in Section 2.2 -Recycloble Moteriøts or Sectìon 2.3 - Orgonic Materiøls.

," /â

City of Fresno: Residential solid Waste, Recyclable Materials and organic Meter¡als Services - Bid File í9211

Section 2 - Technícal Proposal for Collection Services

Technical Proposal for Collection Services

2.2.1 Recyclable Materials Collection

Recyclable materials collection services will be rendered in strict accordance with the terms andconditions presented in the draft Agreement and to the City's and MVD's high service staniards. As

ind¡cated in the section Overview, MVD will procure City equipment, implement services seamlesslythrough the assumption of City equipment-collection vehicles and carts. MVD will also continueservicing routes per the existing service schedule to minimize impacts to customers. No specializedequipment is needed to make collections in challenging service arees, such as narrow streets, courts,and alleys.

Residential recyclable materials collection will be accomplished with a crew of one highly trained andprofessional driver and the automated sideloaders MVD procures from the City. Perthe RFP reguest, thechart below indicates MVD's daily productivity and tonnage assumptions for reryclable materials.

Recycling drivers are highly trained to report observations relative to contamination and customer set

out trends in order to assist MVD managers to stay ahead of contamination issues as well as to flag newmaterials for marketing research. MVD is known for its forward-thinking relative to forging new markets,such as it has done for several wast€ stream components present in commercial/agricultural waste. A 70percent set-out rate is assumed.

Recyclable Materials Program Assumptions

Solid Waste Routes,/Day Customers/Days/Week Day/Route

Hours/Routelifts/Hour

Tons/Route/Day AnnualTonsPrcject Avenge

No¡th Distrlct 8

5

1,355 6

1s9.2510.5 16,335

Soulh D¡strlct 8

5

t,420 6

165.6710.9. 17,008

Flow of Recyclable Materials

MVD will direct haul recyclable materials from the route to its state-of-the-art materials recoverycomplex in Kerman. Protessing and marketing of reclclable materials is described in Sectrbns 2,2,2 and2.2.3.

Dr¡ver Act¡vity Seguencing

The driver activity sequence for manual/automated cart collection is ìdentical to the sequencingpresenting in Sectlon 2.1 - Solid Waste Collection.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materíals Services - Bid File #9211

Section 2 -Technical Proposal for Collection Services

Technical Proposal for Collection Services

2,2.2 Recyclable Materials Processing

The chart below conveys the estimated annual tons of each type of recyclable materials that will be

collected, processed, and marketed. MVD's residual rate for the processing of single stream curbside

materials is less than five percent, which is disposed of at American Avenue Landfill. As per the draftAgreement, the inaterials Ìisted in the Prdections chart (see thefollowing page) will be collected, at a minimum, ând processed atMVD's recycling and transfer station,

The chart below-the results of two waste characterization studiesperformed on MVD Fresno commercial recycling routes-shows theeffects MVD's outreach program had on commercial diversion injust six months. Overalltons of reryclable materials increased nearly

15 percent and residual waste decreased by 8.4 percent,

CommoditiesMetdlAluminumMlxed Glass

occMixed PaperWoodHDPE

PET

Plostic FilmMixed Rigid

Plostic

Recyclables RecoveredResiduolWoste

Total Lbs. Processed

Additional materials witl be included in the curbside recycling progrâm at no additional charge as

indicated with asterisks, below. Overall projected tons recovered in year one by D¡strict ls shown atthetop of the chart. Although the numbers ìn the Projections chart reflect modest increased diversion of

five percent in year one, MVD is confident of its ability to compel additional residential diversion

throughout the term of the Agreement due to the success of its Fresno commercial outreach program

and the results associated with it. ltems marked with an asterisk are mater¡als MVD will add to the

residential curbside recycling program.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - 8id Fíle #9211

Section 2 - Technical Proposal for Collection Services

The recyclable materials projections below are based on the waste characteri¡ation study included withthe RFP documents and also conservatively reflect an increase in diversion in coritract year one.

indicated below.

Recyclable.Mater¡als Projections

Perc€ntege _ Çgq¡pdily

,?,90Y: - _ ¡4SItl

O.2O%- __ _Alum13.00% Glass

17.09% . .. oNP

15.00% occ

3L.40% Mixed Paper

J=.loL ,..,Wgod ._t.zï% HDPE

7.IOo/o PET++

0.80% HDPE natural

Non!.

457

33

2L24

South

476

34

2]11.

2891

2551

5341

34

2Ur87

136

580

2262

4.OOoÁ

13.30%

..27772450

5L29

33

196

180

131

6s3

2173_. Mixed Rigid Plastic

Residual Waste

Annual Tons 16335 17008

As indicated in Section 2.2,1,MVD will direct haul recyclable materials from Fresno residential routes toits transfer and recycling station in Kerman. A facility profile, diagrams, and permits for the existing

facility are presented on the following pages.

Recently MVD purchased 28 additional acres surrounding its current facility in Kerman to expand its

processing capacity, making the total facility foôtprint 38 àcres. The materials recovery facility will be

more than doubled in Phase l, and then doubled again in Phase ll bringing the square footage of theprocessing area from 34,000 sguare feet to approximately 156,000 square feet. The expansion, which

includes upgrades to the materials recovery facility and the addition of organics processing, will be

completed in phases. The site plan included in this section conveys the various phases of the overallproject. The expanded facility plans are featured in Section 2.3.2 since the most significantimprovements relate to composting and anaerobic digestion.

The chart on the following page indicates the timeline for all facility expansion activities.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Serv¡ces - Bid File fl9211

Section 2 - Technical Proposal for Collection Services

r\'Iid!hlle¡- Disposal Rcc]'rl¡ng.t Trn¿sfer Sfrrlio¡ Eryausio¡

f¡sls s¿¡É Ê¡d Irrr!:013 lult

rút6ü

ur Pefüt gtU-liCD toil5f:01: tnsaott t50 )

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Mater¡als Services - B¡d Filê flg211

61

-

Sect¡on 2 - Technical Proposal for Collection Serv¡ces

Facility Profile

. ¡íañe oi Êacll¡tv I Mid Valley Disposal Recycling and Transfer Station

Facility Address

. APN#

Solid Waste Facility Permit No.

Permitted Capacity

Design Capacity

Land Owner/Operator/Address Whe reLegal Notice May Be Served

Hours of Operation

The following are the proposed hours of operation by activity.

Activity Hours of Operation

15300 West Jensen Ave

Kerman, CA 93630

023-080-155

1-AA-0201

500 Tons Per Day (TPD)

1000 Tons Per Day {TPD)

Kalpakoff Properties (own er)Mid Valley Disposal (operator)15300 W Jensen Ave

Kerman, CA 93630

Site [ocation

The FACILITY is a proposed material recovery facility and waste

transfer station. Major roads providing âccess to the fac¡lity include

lensen Avenue, and State Route 145. The facility consists of l0 acres,

is zoned M-2 (industrial), and is surrounded by compatible land uses.

waste ReceivingWaste Processing

Waste TransferV¡sitors

6;00 am to 7:00 prn M-Sat

24 hours a day,1 days perweek24 hours a day,7 days perweekBy appointment, M-F

62I

!f¡;+¡F-:--._,Í

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File #9211

Section 2 - Technical Proposal for Collection Services

SOLID WASTE FACILITY PERIì{ITFrtlltiy lYunDct:

l0-AA-0201

t. N¡rË rDd St¡cÈt Addrtæ of Frtlllty:

Mid V¡llcy ûi¡pos¡i Rccyoling rndT¡rn¡fcr Sr¡don153fi) ü Jas¡rAvc¡ucKcrffißCÄ 93630

l. N¡nc¡od fìl¡lllDE ^ddrrsof

Opcittof:

Mkl VrllcyDisposal1.O. Eo¡ 12305Frcrnq CA 9j1777

3. ¡l.ma rnd M¡lllu¡ Addrl'cdOrrarc

Kat¡ukolf Propcrrict, I.LCP.O.Bor l2i]8j'Frc¡r, CÂ 917?

0'ftollsfonmlton Facllity

E ott'ct

-

{. Speclnc¡llonr:

r. Pcflrtllcd Oper¡tio¡¡: E Solid WestÊ DbPoß¡l Sib

El Tr¡¡¡ferlp¡occ¡¡he F¡cilily (¡tRF)

B ø-po¡ringfølity

3,

d.

b. PÊrmltl.d Hour¡ olopcrrllon:

Pc¡¡¡rlttrd Mr¡lmum To[DrgG: 500 Tone pct Day

PcrmlficdTr¡lncVôlumc! l3l .,

OnÊU/ryVch¡clêTnÞ¡

Kcy Dcslgn Prranreters (Dclalld p.?¡mterr ¡n ¡hown on ¡ltt phnr berrlog EA end Cl\tMB velld¡tlon¡)r

Pmincd ^E

(h âÈrs)

Dcr¡gn Crp6rítt (rüsl

Mû¡, El*¡lior (FL MSL)

Mu. Dtpth (Fi. ÈrSt)

E$lrErÊd Oosulc Yc¡r

Upônr5¡8nifiøtc¡mçìndoignropcrrtio¡Êomthrtdmibcdhcfçir,,ùûpûnÍti¡rüUßtloÈvûcútionora¡spcnsisl. fìcrtlichcdpcrEril find¡ngr Ðd øditions arc intcgrl panr of drl¡ pqralt md ¡ùpcrrcdr ùi aonditlonr of ury prcvioù,ly iÈrud ¡olid wrsrc frcility pcfmít,

5. Ap¡rovel:

Tlot L.CugrrndtDlrcclor of f,nylrônñënt¡l llô¡lthFfcsno Counly Dcp¡rtm"nl of Comnunl(y Hcdth

Äpproving Olliccr SigóÂh¡rÊ

6, Enforcêln.nt Atcag' Neme lnd Addrcrr:

Couly olFrcsno

Dcp¡rùrEu! of Co¡fsau¡ily Hcalth

Envi¡onmcnul Hc¡lih Divi¡ionI 22t Frf tonMrll, Third FloorFresno,CA 9J721

7' D'tGRcsûlvcdbvcrnvìrtB: JÁN 1g 2007

8. CNYMB Conrurrane D¡t¿:

9. Pcr¡nit Inucd Drt¿; 10. Pêrmlt Rêvlcr.Ilu¿ Drle: I l, Owntr/Oper¡lor Tr¡o¡fcr D¡tcl

Fage I of4

63

-

City of Fresno: Residential Solid Waste, Recyclable Materials and Organ¡c Materials Services - Bid File f9211

Section 2 - Technical Proposal for Collection Services

SOLID WASTE FACILITY PERIVIITftÊlüly Nunbcr:

r0-AA-0201

¡¿gil DÊrc]lpttoD of Frdüly:

Tb legrl dcseù1¡on of thl¡ hcítity is contained on grç I of lh¡ lnnsfcr/Procossi¡g ROon d¡tcd Novcnbe¡ 2006 ¡nd descrlbed o¡tbc GôsrÊmh8tf of APN023{8Gt55L

13. Plndlngr:

Tüir pífl¡it ir cors¡¡tc¡t wil! tbe Fres¡o Cou¡ry lDtÉE ¡lêd W.rtc Muragcnrrrt Pìao, wltiú was approvcd by lùÊ gfVMB o!Juræ 25, 1997. Thc lartion of lhc ÈcilitÏ is idsnlïfiod i¡ tùs City ofKcrøa'r Nord¡lpos¡l F¡c¡lity E¡cüñL Façu¡nt to PublicRcsourccs Co* (PRQ. Scction 5ó001(a),

Tbls Pttnit b Éo¡si$cnt *iú thr sb¡dads adopd by tlc CMMB, pqrs¡lor to PRC ¡14010,

Tbc rtcsigl ard opcntion of thc lbcility is cons¡scnr irf rùe Sutc Mi¡i¡¡un Su¡do¡rt¡ for Sotid Wasro llûdling rd Dispûrlss dctcr¡ßhÊd ùy thÊ cnfo¡rcfütot sg,cocy. pr¡rn¡âtrt tô PRc 44m.

À (MitigotcdNcgrtiw Deslmtion) rns filcd wiû thc SEtÊClcuinghousc (SCH #1005101081) rnd rpprcwd þ tåa City ofKcnunonDæ.cmbcr12,2005. ThrMidptedNcg¡üveDcclrn$o¡dcsc¡llcsâúd3urporalhcdr¡íg¡oldopr¡tir4ìvh¡chwlll bc ¡uùorized by thc irsrnnce of this ¡crnil A Notícc of Dawr¡b¡tio¡ wa¡ f¡hd rdtù th€ Cot¡Dty Ocrt o! Jalrrary 21,2m6.

r. ProNbldonr¡

thc pcnnittËe is prohiblled from iccèpfin8 lhc followirç wrslcr;

Haz¡¡dor¡¡, ladioactivc, rædicot (u dcfmd itr Cluptø 6.1, Dieirio¡ 20 of thc ll¿alù and Safaty Coda), líquid designar.¡, q¡

orher wxtcr æguiriry spccirl tscaEnml or ù¡adlitrg. Gxcry{ es ¡dGrttfcd iD ùc RÐorl of Frci.lþ lafomrdon ¡od ¡p,ptovedaw¡d¡¡cnts tlecto ud rr r¡proved by î!c eaforcrcat r8sac', ard olhcr fÊdÊr¡|, ¡þtc, ¡ìd loc¡l rgøncicr,

15, Th.followlngdocrrnrrllrdcacrlb.rnüorrcrHctfùcop.r¡tlonoftùlrf¡.tutyt

D¡tc l¡rté

Trarsfcr/Proccssing Rcpon ¡ l,þ6

Mitl8ûted Negaa¡ve Dcclsfttioo(scr{f200s10r082) lunms

L¡nd Use andor Condirìon¡l Us P€mir 054? rut2to'

Odor lrnpact Minimieation Plan

Augus¡ 200ó /RÊviicd

Dcccmbcr2006

Page2 of 4

City of Fresno: Residential Sol¡d Waste, Recyclable Materials and Organic Materials Services - Bid File f9211

64- I

Section 2 - Technical Proposal for Collection Services

SOLII) WASTE FACILITY PERMIT['rdll¡t Nunb.ñ

10-AA-0?01

Sdf MonltorlngrThe owncr/op€Ëlor shsll ¡ub¡tril thc rcn¡lg of oll çlf monitori$ progneJ to th? Edorctormt fucucy wittin 30 da¡r of th cndoflhcrporrbgpctioú'(forctaaplc, Iíqwrter-Jonaary-Marchihcnp,onkducbyApríl30,etc.. InlornatìonrequÌrdonøt an¡yal bosts ¡hotl þc nbntaed wtth thc lth quortc¡ nnitwiry nporr. vnlers olh¿a¿rsc stûd,)

Pro¡r¡m Rtport¡ûg Pr.queocy

(Ünlcr olhavlsc lr{ù¡ñü byIJA)

Thc t¡?es rod quaotiti?s (i¡ toæ) ofv¡¿6tê. ¡ncluding ssparBted orcornningtcd rec¡,sbbleqmtcring thc fEc¡lity psr d8y.

Tlæ mmbc¡ of whiolc-r usíng thc thcíHrypa dûy.

Rc¡ula of lbt b¡ardou¡ w¡¡tc lo¡d chæÌingprognn¡ including rlæ qu¡¡¡titirs:¡d tncs ofhlzüdora w.slcar ÍEd¡crl s¡rrle3 or ottcrrrkc Frohib¡t¿d wbstcs fû¡¡nd ia tbc r¡rstr ¡h¡¡murd thc dbpositioo of ü¡c:c m¡tøi¡I¡.

Coptæ of all fünÉn co4lÂi¡$ ægnrding ùir frcility rnd thc opcntd¡ ¡críqrs t!¡ar toasolve tlcrc conrpbinu.

Elrylo¡,ec urining logs witl dates of raioiq ond counc dcsaþtÌon. Tlrc caining logs rlallbc n¡inbiæ{ ¡nd kÊpf cunrot

Qurrdy

Quærty

Qnrtcrly

Aütcrly

gnncrlf

Page 3 of4

City of Fresno; Residential Solid Wastg Recyclable Materials and Organ¡c Materials Services - Bid File S9211

lFedl¡tyNuE[.n'souD \ryAsTE FACILITY PERMIT I r{1AA.0201I_.t

Enforcenenl Agency (EÀ) Condltlons:

t. Tùc op(l¿td slutl coqly wilt dl SEtÊ Mirird¡a SEndå¡ib for ¡olH çrsc h¡¡rdliog üd dirposel u æ.cif¡cd in Titlc tdC¡lifomit Codc of Resulatioas.

b, Thcopcrator¡ì¡lln¡iuoi¡¡logofçccirllunusurlcaürc¡.ëß Thirlo6sbllhshd..bùt¡¡ootiiñ¡t.dto.fiË¡ergloaioûr,tbc discbargc ond dlspoclüou of hæardou¡ or uqamincd wartel ard signifrc¡¡t i4irùicr, âccilcrrb or prqpsrty d¡Í!Sr, Eâcblog enry stull bc rccorpcnicd by t sunnury of aay xlionr utcr by the openbr o oitigrø thc ocourencc. Tbc log sbdl bcÂvailsblc to sita p.rso¡¡cl ¡nó ùe E{ ¡t ildoca

c Addjliooal l¡fo¡mrtþ! concû¡itrB lhr. design and opcratior of thc fasility ibäll bc ñnalrlrd upotr fcquest ùd w¡ûi¡ ùc tiæÊar: qpoeifìcdbytbtEÀ.

d. Ihc m¡xi¡m¡m pcrmitlcd daily ton¡âgÈ for lhb fôtiliay is l)0 lonr per dry ud tb¡ll no( iËccive rm¡u th¡n this amu¡t wlthour orcvirion of ùb permil

c. Thb pcmil ¡¡ s¡bjccl to tsvlcw by the EA rnd nay be suspodc( rcvotcil, or rwised rt uy tÍñc for ¡uflìsiçlt 6¡r¡sc,

f. Tho EA ¡cscnæ¡ ûc ríght to irßpõd or Etd¡fy \¡rsrtc ncciviry a¡rd h¡ndli¡B op.niioûr ï/ù16 dccræd nccc¡sa¡y duc lo ÀneßÉTgÊlrcyr tr poteîlhl ùcâlth hrzü{ m ùe cc¡tio¡ of ¡ Fùlìc Nirmca

g. AnycbangerhatmuldcÍ¡sclbcdcsignoropÉtstiûnoftrcfasilitynotoconformtoltctcr¡¡andconütionrofrhirpermitirp¡ptibitcd. Such r clnogc nay bc considcrd e rigrnlicmt change, æquiriog a prnrit rtvisior b no casc sball lhc operatorinplcncnt ury cbmgc withou¡ frrt obmicing r wrincn notiß. of tùc propûsêd chrngc, h thÈ form of ro RFI rmcdmenr, to ilrcEA rl IËßt 180 ilays in adwacc of lhe changc.

h. A clpy of thir pcrnil 3håü bc rü¡nrûincd at thc facility.

l, A co,py of thc Tra¡sfcr Proccssi¡g R.Dórr (IPh) sball bc ¡ninbin¿d ¡t rtc Ècility.

J. A copy of lìc Odor lnpâdMinimizôt¡oD?ln! (OIMP) sbâIl læ maintaincd at rhe facility.

It Co¡¡Fosthg h proht'birod rt ùe frcillty. Procescd ud u¡¡proccr¡cd grccp Eâtcri¡ c¡¡ bc ¡tored oo loagel tùaa {t ùour¡ r¡¡let¡e longcr storlgc ti¡!Ê i¡ rpFrtvcd by ttrc LEA.

L Munlcþal Solkl W¡slt (MSW) omot bc storad orite fur morc tlao ¡lt hourr. MSrÀr mut bË drpo¡itd ånd saond ¡lsidc thrÈelçfcr rþdon hcdld¡¡9.

rn All rccyclrblc ¡rqterisb slnll bG ¿torcd within thc dcsigmtcd rar in o ncat aod ordarly.nra¡mr 6Ð ss rd te tcûcr¡tc littct,tiltor wclon, or crÊtlê ¡ nùi3o¡cc. Rc.yclrblË rütcrhb ca¡ ùc starcd fon rÞ to 110 d¡yr llllc$ fhG LEA dctflfürìca thEt thcslorrgc of thac mlcriols is causing a po(ÊntiÐl ha¡lth Énd safcty hazrrd,

¡. CoDl¡ct tbc ¡-E{ for a pt+pcning facilþ inspcrion r oiaimumof 7 deyr grior to thc rnticþrted frcility cpening drta

o. Â linsl sppmvÉl hncr rmsì bc proviH to ùc LEA ûomthc lcc¡l fm ¡utìodty and tìc Ciry of Kennau beforc tbe faciliry ølbegin opcnting.

Page 4 of4

66I

City of Fresno: Residential sol¡d Waste, Recyclable Materials and Organ¡c Materials Services - Bid File #9211

Sêction 2 - Technical Proposal for Collection Services

City of Fresno: Residential Solid waste, Recyctable Materials and Organic Materials Services - Bid File fl9211

Section 2 -Technícal Proposal for Collection Servíces

lr*;l

ifr-EiilB'

f.artÁ

r&lÉrÆ¡ MID-\'.{ILEY DISPOSAI RECY(

JI--4t5'l

-¡=

=--ã'

Eflr¡#lå, Fü'J;Eêfi*]rË-tlE vlEliT$r]h'l'E:ÐNl,{gåõr,Àt-çfl nP.

Jt*lFJ'i -'tIüiBÈ{,..?i-rif,JF¡

ity of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - 8id File il9211

68

-

Section 2 - Technical Proposal for Collection Services

\

-t-"I

l!rltliI

CYCI.IIr{G e'T'R"U\SFER ST'tTnO N

¡¡+ itit¡¡!t FFFF Fr"-r l!.rra!l! ?r¡ÉA=iÈ5 --:. aãrtr¡

rE¿ffiä

"ü¿l'È::ltu.FfF}¡ ATEi.fJTLIFTE¡fl¿!.

îi:I{¡.Bf.lå 1f¡?í.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organ¡c Materials Services - Bid Fite #9211

Section 2 - Technical Proposal for Collection Services

This page left blank intentionally.

City of Fresnol Residential Solid Waste, Recyclable Materials and Organic Materials Services - 8id File fl9211

I-

;f

Technical Proposal for Collection Services

2.2.3 Recyclable Materials Marketing

MVD has ample proceséing capacity to accept Fresno's residentialsingle stream recyclables, both Northand South Districts combined or either District separately, as well as manage seasonal/économics-drivenfluctuations in volumes.

Operations can be scaled back or up, by adjusting the burden depth of the sortline, adjusting sortlinespeed and personnel, or by adding another shift. With the facility expansion, MVD has several days ofbale storage space. MVD rnarkets its own materials directly to buyers, and has long-term relationshipswith materials buyers that are stable due to the high quality of MVD processed commodities.

The chart on the following page indicates primary and back-up markets for curbside recyclables. The NoLondJì\| Guorontee, below, indicates MVD's promise to seek out alternatives other than landfilling ofresources, even when faced with dire market circumstances. MVD does have storage capacity formaterials should en unexpected market slow-down occur.

No tandfìll Guarantee

MVD has invested heavily in recycling processing infrastructure in order to maximize recovery ofrecyclable.commodities, ln order to assure the City of Fresno of its. intent¡on to not landfillprocessedrecyclable commodities, MVD will allow the City inspection of the inbound/outbound data and reportsassociated with the processing of Fresno curbside recyclables upon fair notice by the City ContractManager. MVD also guarantees that ¡t will not landfill recyclable materials in all but the mostunforeseen, catastrophic conditions. Should a catastrophic event or events occur, MVD will, if its ownstorage space is depleted, make every effort to locate additional storage space for baled material untilêvents or markets right themselves. MVD will seek out Fresno City Staff approval for any othernecessary measure(s).

Signed - Joseph Kalpakoff Dated

City of Fresno; Residential Solíd Waste, Recyclable Materials and Organic Materials Services - Bid File f 9211

Materials MarketsComñodlty

Section 2 -Technical Proposal for Collection Services

Primary Market Se condary Market Average Aggregate

PrlceÆon1

METATS

i Aluminum Canst-, Aluminum Foil

i Ferrousfin Cans

¡ (Household Source)I Mixed/Ferrous-Based

Scrap MetalsMixed Non-Ferrous Scrap

. Metals

Allan Company(Fresno, CA)

western metal(Fresno. CA)

Same as a6ove

Same as above.

Berg Mill Supply(Eeverly Hills, California)

Levis lron & metal(Fresno, GA)

Same as above

Same as above.

51200.00 / Ton

$soo.oo / ron5100.00 /Ton

$zzs.oo / ron

5300.00 / ron

Gl¡ss

-

e ials riotiies Jnã iars -

strateglc materlals Allen Company(Fresno, CAI

S15.00 /Ton

Pl-ASTtCS

PÈstics 1- 7:' -

Contalners(Excluding Styrofoam IPlã5t¡c Bags

Ênvision Plastic(Chino, CA)

Newport CH

America Chung Nam

. (Export Marketsl

Yes, Depot(Pomona, CAI

5400,00 / Ton

$40.00 / Ton

: (Orânge County, CA)

FAPER

Mixed Paper

Corrugated

American Chung Nam(Export Markets)

Amer¡can Chung Nam(Export Markets)

Potential lñdustries(Export Markets)

Cellmark

lCorte Madera, CA)

S1z5.oo / Ton

S15o,0o / Ton

OTHTR

Household and RechargeableBatteries

Cell Phones

E-Waste

E-Recycllng(Hayurard, CA)

Same as above.

Same as above.

lnternational ElectronicRecycling

(Fresno, CA)

Same as above.

Same as above.

52.00 / Ton

$2.00 / Ton

S4oo.oo /Ton

rover the mort recent 12 month period.

City of Fresno: Residential Solid Waste, Recyclable Materiels and Organic Materials Services - Bid File fl9211

nI

Section 2 -Technical Proposal for Collection Services

Technical Proposal for Collection Services

2,3.L Organic Materials Collection

MVD will, within year one of the operations start date and in sync with the commissioning of its newintegrated organics processing facility, impfement a true organics collection and processing programthat will allow for the collect¡on of all residential food wastes and food-soiled paper products. This is

fully described in Sectlon 2.i.2. Organic materials collection services will be rendered in strictaccordance with the terms and conditions presented in the draft Agreement and to the City's and MVD'shigh service standards. As indicated in the section OvervÍew, MVD will procure City equipment,implement services seamlessly through the assumption of 'City equipment-collection vehicles and

carts. MVD will also continue servicing routes per the ex¡st¡ng servlce schedule to minimize impacts tocustomers. No specialized equipment is needed to make collections in challenging service areas, such as

narrow streets, corJrts, and alleys.

Residential organic materials collection will be accomplished with a crew of one highly trained andprofessionaldriver and the automated sideloaders MVD procures from the City. Per the ßFP request, thechart below indicates MVD's daily productivity and tonnage assumptions for organic materials.

Organics drivers are highly trained to report observations relative to contam¡nation to help informMVD's education and outreach efforts. The projections below represent a projected 50 percent set outrate and year one tons.

Organic Materials Program Assumpt¡ons

Organics Routes/DayDays/Week

Customers/Day,/Route

Hours/RouteLlfts/tlour

Tons/Route/Day AnnualTonsProjected Avercge

North D¡strlct 7

5

1.560 4.5173.33

29.8 37,326

South o¡strlct 7

5

1,615 4,5779.M

30.8 45,627

Flow of Organic Materials

MVD will direct haulto its new integrated organicsbase.

processing facility located at its Kerman operations

Driver Activity Sequencing

The driver activity sequence for manual/automdted cart collection is identical to the sequencingpresenting in Section 2.1-Solid Waste Collect¡on.

City of Fresno: Residential Solid Waste, Reryclable Materials and Organic Materials Services - Bid File #9211

Section 2 - Technical Proposal for Collection Services

Technical Proposal for Collection Services

2.3,2 Organ¡c Materials Processíng

Eased on available waste characterization inforrhation and the tonnage information provided by theCity, MVD anticipates it will collect and process these general volumes through the new program. Withthe addition of food waste and food-soiled paper, it is anticipated that contamination volumes will notexceed five percent. Year one tonnage figure are ind¡cated in the preceding chart. A substantial shift indlversion is anticipated in mid-2014 when MVD's integrated organics processing facility comes on llneand the program can be expanded to be a true organics collection program, including all food waste andfood-soiled paper products.

Contamination

Cgntamination will be kept in check through the rigorous outreach program described in Section 2.8.|twill also be kept under control through driver and facility operator observation. Moreover, MVD loadcheck procedures will identify and document sources of contamination. All information will be utilized toinform MVD's education ând outreach program ongoing; however, MVD will also contact repeatoffenders and provide whatever assistance is needed to control contamination. Should any repeatoffender fail to take corrective action to improve set-outs, MVD will not make the collection until thecontaminants have been removed, ln extreme cases, or based upon City preference, MVD will share thisinformation with the City in order to permanently resolve any contam¡nation issue.

Guaranteed Processi ng Capacity

MVD guarantees that it will process all loads of organic materials it receives and also guaranteesprocessing capacity for the term of lhe Agreement The Beneration point and contract will be identifiedduring weighing and tracked and reported through MVD's Encore waste industry software application.This assures that all loads are accurately allocated to the generator/customer.

lntegrated Organics Processing Technology

San Joaquin Valley Air Pollution Control District regulations regardlng emissions from chip, grind, and

compost operations will be mitigated through MVD's selected composting technology and throughanaerobic digestion.

The following feedstoiks will be accepted at the MVD for composting and/or anaerobic digestion.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File fl9211

Section 2 -Technical Proposal for Collection Services

a

a

Yard waste onlyYard waste and food waste mixed (fromresidential sources and/or combined withone of the other materialtypes)Food waste (from commercial sources)

Wood waste

Coffee grounds

Pre-consumer vegetative food waste(Grocery Produce)

Paper

Grain

Sod

Manure (herbivore)

a

a

ta

a

a

a

a

Process for Mixed Organic Material

The process begins with delivery of feedstocks including yard waste, source separated food waste,residual wood (as a composting process carbon source), agricultural land clearing debris, and otherorganic residuals as per any permit conditions. Trucks delivering organic materials for processing willcheck in with the scalehouse, be weighed, and directed to the covered tipping area.

As materials are dumped, plastic and other non-compostable materials will be iemoved by hand. The

food waste and yard waste will be ground to assure contact between the food waste and yard waste.Screening will take place to remove large woody material and again remove the non-compostablematerials. After screening the combined feedstock will be fed into a hopper then conveyed to thecomposting Phase 1.

Diverting Unaccepta ble Materials

Material will be rejected if contaminated with a prohibited material or if overly odorous and

unmanageable. Diversion of unacceptable materials will be managed by returning them to the

originating customer if possible. A detention area will be rnaintained to allow for reloading. Reloading

will be attempted while the tipping vehicle is still present. lf the vehicle has left, then the material will

be recycled or disposed of as soon as possible. Request for container service will be made within eight

hours of detection.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File fr9211

Section 2 -Technical Proposal for Collection Services

Proh¡b¡ted Materials

Reasonable care will be taken to exclude prohibited materials, which are gypsúm waste, gypsum wastepaper, demolition debris, painted wood, preserved wood, steined wood,,waterproofed wood, creosote-

treated wood, chemically contaminated wood, plastic laminate, vector wastes, septage, hazardous

wastes, and contaminated soils (soils that Ínclude pollutants in concentrations in excess of maximum

limits,

Receiving Materials

The materials are designated into the¡r proper category based on incoming customers' characterizationand a load check. The weight of incoming materials ¡s eutomat¡cally recorded into the computer systemvia Encore softwafe, a sophisticated software application that tracks truckload data and scale weights.The company'will also develop and ¡ntegrate LEED green building tracking and reporting capabilitieswhich tracks load waste stream composition details and uploads them directly into MVD's database.This module will be utilized by MVD to track and report the composit¡on of every load of materialcoming ¡nto ¡ts facility; it will be especially useful in monitoring and troubleshooting contamination

. issues.

Grinding and Blending

The GOREo Cover system (GOREo) is deSigned to compost organic feedstocks including:o Fresh grass clipplngs and leaves¡ Tree limbs and branches (groundlr Supplemental bulking and inoculate material as requiredr Food waste

Suitable supplemental bulking and inoculate material is defined as re-screened overs or other coarsescreened products from the GOREo composting process amended with freshly ground tree branches andlimbs containing moist wood, bark and leaves and urban wood. The particle size should be fíve inchesand smaller, including some freshly ground fines to provide a more readily available carbon source forthe heav¡ly nitrogenous feedstocks. Thìs'material must be biologically active with microbes that havesurvived through the environment of the GOREo process to accelerate the onset of the compostingprocess.

Feedstocks must be adequately prepared for composting in the GOREo Cover system. To be properlyprepared, the feedstocks must be mixed together in a balanced ratio to obtain:

A, A beginning carbon to nitrogen ratio (C:N Ratio) in the range of 25:L and 35:1. .

B. A moisture content of approximately 60 percent.

City of Fresno: Residential Sol¡d Waste. Recyclable Materials and Organic Materials Services - Bid File f9211

- ''¿¡. oct. )

Sectíon 2 - Technical Proposal for Collection Services

To achieve this, MVD will use a grinder or mixer loaded with appropriate quantities of feedstock to grindand m¡x prior to discharge. Once properly prepared, the feedstock will be composted using the AeratedStatic Pile (ASP) Method, ASP compost¡ng is a managed process that controls the biologicaldecomposition and transformation of biodegradable mater¡al into hurnus-like substance whilemaintaining aerobic conditions throughout the compost pile. The process will generally follow the sevensteps outlined below.

1. Material defined as Compostable Waste will be unloaded in the Tipping Building. This area willinclude the apron attached to the front of the Tipping Euilding. Woody material and materialnot defined as compostable waste material will be unloaded in a staging pite designated forgrinding.

2. Yard wasteVood waste feedstocls will be managed in separate parts of the build¡ng.

3. The head-space inside of the building will be maintained on continuous negative aeration whilematerial is in the building. The fan system will allow four air exchanges per hour.

4. A loader will move material toward the grinder end of the building, mixing bulking agent inalong the way.

5. Food waste will always þe unloaded in the tlpping building and allowed to draln. This willmanage odors associated with the liquid. All Tipping Building materialwill be mixed inside thebuilding then loaded into the grinder based upon material size and consistency. Un-mixed foodwaste will be covered with screen overs at night. Processing to the back of the building on each

side.will be accomplished every other operational day so older material storage will not occur.

6. Should any problems be observed, operational personnel will report them to the facilityoperation manager. Continual evaluation of the performance of the operational system and airsystem will occur in addition to the normal reviews outlined in our permits.

Ope¡ational personnel will maintáin control of the Tipping Building area, maintaining clear signage and

instructing truck drivers where to unload their type of material. When material is unloaded in the wrong .

location this material will be moved to the appropriate area as the highest priority and the truck driverwill be re-instructed for future deliveries. Scale house personnel will init¡ally classify material based on

customers' characterization and make an ¡n¡tial determination of material type; operetional personnelwill make the final decision after reviewing material being unloaded,

Aeration, Phases, and Retention fimes

Phase L composting will use the GOREo Cover system for aeration and processing during this mostactive and crÍticalstep in the compost process. ln the first 14 days of composting lt will be critical tohave the material covered for control of odors, moisture, temperature, and air. The objective is toprovide sufficient oxygen¡ conte¡n odorous emissions, keep the environment suitable for bacteria tothrive, reach temperatures that kill pathogens, and produce a quality product. MVD has chosen theGOREo Cover system to accomplish this- This system has proven in many applications to achieve thesegoals. Phase 1, which includes active aeration, will take 30 days to complete. Each pile will be covered

with the GOREo Cover during composting, which will mit¡gate air quality concerns.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - 8id File #9211

77I

Section 2 - Technical Proposal for Collection Services

At the end the first 30 days the composted materialwill have reached a stable leveland the chance ofodor release will be greatly diminished. The GOREo Cover will be pulled back and the material will bemoved by loader to Phase 2. The material will be watered as needed to reach appropriate moisture andagain piled. Oxygen demand will be greatly reduced, so the Phase 2 pile will be allowed to aerate bynatural convection (rather than active aeration) and to age. This will take place for at least another 15

days.

During each of Phase 1 and Phase 2, monitoring will include measurement of stebility, temperature, pH,

ând oxygen to ensure the environment in the pile will support a healthy aerobic bacterial population.

After 45 days of intense management, the compost will then be moved to Phase 3, which is a storage

and aging phase. Fungus type organisms will continue to work on the cellulose and resistant organics.The aging pile can be broader and higher than Phase 1 and 2 because the oxygen demand will be much

less and the nitrogen will be essentially converted to the organic state. The biological population willstill be thr¡ving and the product will now be suitable for a multitude of uses. Storage will be necessâry

because production is constant year round but the dernand for product is seasonal. Reviewers will notethe storage areas included in the site plan presented at the conclusion ofthis section.

Pathogen Reduction

EPA established the minimum criteria used for meeting human health objectives. These criteria are

stated in the body of regulation entitled 40 CFR Part 503.32, (also referred to as the "503 Regulations").

The technÍcal term for the mínimum críteria to produce a Class A compost is "Process to Further Reduce

Pathogens" or PFRP. The PFRP criteria for the aerated static pile and in-vessel methods of compostingare stated as follows:

Pile temperatures shall be maintained at 55eC (ßlsF) or higher for a minimum of 3 days {i.e., piles mustbe covered to ensure minimum temperatures throughout the pile. r

Product Finishing

After 60 days of aging the material will be marketable to home type uses; agricultural applicationrequires no aging. MVD will marketing heavily to agriculture lsee Section 2.3.j1.

The following graphics depict the cOREo process.

City of Fresno: Resídential Solid Waste, Recyclable Materlals and 0rganic Materials Services - Bid File f9211

Section 2 - Technical Proposal for Collection Services

1¡{Ë GOREr¡r COVER SYSTEM. CROSS SECTTON VtEW

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File fl9211

Sect¡on 2 - Techn¡cal Proposal for Collection Servìces

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Section 2 - Technical Proposal for Collection Services

c Digestion (AD) Process Description

MVD is in the process of deciding which AD tÞchnology it will utili¿e in its facility. Essentially, in any ofthe systems it is consider, there are two key benefìcial outputs:

1) Biogas: The production of biogas begins quickly after percolatìon. Biogas is generally collected in

an embedded piping systern in each digester and stored in roof-mounted double-membrane

bladders. Stored biogas is available for addition into the combined heat and power system or

compressed natural gas (CNG).

2l Compost: Compost is a high-quality organic soil amendment that reduces the need for chemical-

based fertil¡zers, pesticides, and irrigation water. At the end of th€ 21 digestion cycle of the Elk

Heights AD system, the san¡t¡zed digestate is removed from the digesters and used as thêprimary feedstock in compost production.

W¡th respect to biogas, MVD is considering providing renewable combined heat and power, compressed

natural gas, or a combination of the two. lt is important to note that even with a relatively small amount

of feedstock (10,000 TPY) the systems under consideration can produce approximately 60,000 to 65,000

diesel gallon equivalents (DGE) using off-the-shelf biogas upgrading equipment. The biogas upgrading

equipment under consideration produces a low heating value off-gas that can be used to fuel a

combined heat and power microturbine that can serve the electrical and thermal parasitic requirements

of the AD facility.

ln terms of the production of compost at a dry AD Facility, at the end of the 21 day digestion cycle the

san¡tized digestate material is removed from the digesters and used as the primary feedstock in

compost product¡on. The digestate would be immediately undergo intensive ammonia stripp¡ng for 4 to5 days. Following the removal of ammonia and some residual moisture, the compost is ready formaturetion and curing in Phase ll piles.

New lntegrated Organics Processing FaciliÇ

The site plan on the following page shows the fully expanded Kerman site, and the materials recovery

facility and the integrated organics processing facility upgrades. Each component is ¡dentified wlth a

Phase. A prorect schedule follows.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - 8id File s9211

Section 2 - Technical Proposal for Collection Services

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City of Fresnor Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File tf9211

84

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Section 2 - Technical Proposal for Collection Services

Technical Proposal for Collection Servíces

2.3.3 Organic Materials Marketing

The following table lists the products thât MVD team members have developed ár. *¡¿" range ofmarkets.

hoduct End Use/Applicatlon' Certified Compost

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- Landscapes, gardens, soil amendments, farming soil remediation,

, erosion control (berms, tubes), post-construction so¡l treatment

' Planting, landscapes, lawn treetment. sod development, Browers,

, constru¿tion projects, low-¡m pact development

Filtering and stormwater berms and socks

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" For urban container gardens, vegetable pots, potted trees

. Soil amendments, lawn/gârden applicâtions, landscape renov¿tions, site

development. perennial bed treâtment

MVD has many agricultural recycling programs in place, which has afforded MVD the opportunity toestabl¡sh rapport with local fa¡mers. This connection with the farming community will facilitatemarketíng to the agricultural community and is an excellent demonstration of closing the loop.

However, MVD is also hard at work investigating and beginning the process of developing these othermarkets:/ Construction and landscape contractors/ Landscape architects

/ Nurserìes

¡ Landscape supply yards

r' Propertymanagementassociations/ Groundskeepers¿ Golf courses

¿ Homeownersassociations/ Commercial and real estate sales outlets/ Erosion control contractors/blower truck services

Large conventional and organic farmers producing high-value crops are MVD's main prospects for largequantity compost use. Based on preliminary discussions and research, typical compost usage per farm isin the range of 500 cubic yards annually. The proximity MVD's facility which will compost in a highly

controlled, proven, consistent manner will facilitate finished product marketing to farmers and otherconsumers to more effectively close-the-loop.

85. -

City of Fresno: Res¡dent¡al Solid Waste, Recyclable Meter¡els and Organic Materials Services - Bid File fi9211

Section 2 - Technical Proposal for Collection Services

Technical Proposal for Collection Services

Additional lnformation - Clean-Up Services

MVD has carefully investigated the City's two proposed clean-up opt¡ons and has prepared pricingproposals, as requested by the City, for each option, as summarized below. ln either scenario MVD willinclude clean-up inforrnation in seruice guidelines and on its website.

Guidelines will emphasize program do's and don'ts including clear messaging relating tounpermitted/hazardous wastes. Any such materials encountered will be tagged and left. MVD clean-uppersonnel will attempt to contect the resident while on site, lf nobody is available a MVD customerseruice representative willattempt to make contact w¡th the resident by phone to follow up. ln the caseof extremely hazardous waste of explosives, City of Fresno emergensy services will be contacted.

ln either ¡nstance MVD will divert as much material as possible by coordinat¡ng w¡th charities,community groups, and non-profits to arrange for gleaning of reusable materials, MVD elso will not usecompaction equipment for the collection of reusable items, Customers will be instructed to separateand bag or containerize materials in such a way to optim¡ze diversion.

Option 1 - On-Coll Cleon-Ups and Option 2 - Scheduled Neighborhood CIeon-Up Events are described indetail on the following pages.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File #9211

Section 2 -Technical Proposal for Collection Services

Residents are allowed to schedule up to three on-call clean-ups by appointment percalendar year. lf the City selects this optroø MVD will, as per the RFP, provide the clean-up ser¿'ú¡ce within five days or.on the customer/s preferred clean-up day. Under thisOption residents will have the ability to place out for collection an unlimited amount ofsolid waste, recyclable materials, organic materials, other salvageable materials,furniture, building.supplies, and other bulky items -such as appliances, weighing lessthan 200 pounds and no longertharí seven feet in length.

When customers call in to schedule their clean-up a MVD customer servicerepresentative will review w¡th them the program guidelines in detail and will confirmthe appointment date. The material allowances, below, will be communicated toresidents. Program details will also be posted on MVD's website.

Option 1 On-Call Clean-Up Allowances - Per Event

Material Allowance

Bulky ltems - less than 200 pounds and 7' in length,

Ap ption ces, Fu rnitu re, Lumbe r Per City Stondards

Bagged Material

Sol¡d Wdste'

Reqtctoble Moteriols

Orgonic Moteriols

Bulky ltetns

Appfionces, Funltute, Lumber, Etc. Some

Textiles

E-Waste

loys/Rìgid Plostiæ

Buildinq Supptîes

5cîop Metol

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid Fíle #9211

Section 2 - Technical Proposal for Collection Services

Option 2: Sched uled Neighborhood Clean-Ups

Neighborhood clean-ups are scheduled once annually for all residents. Should the Cityselect this Option, MVD will coordinate a highly organized project with excellentcommunication and planning between CiÇ staff, emergency services, and Fresno'sPublic Transportation (FAX) to mitigate any potential safety hazards and ensure thatroad construction, bus routes, and public safety are factored in to the overall approach.

ln general, MVD will schedule .|."n-up, to occur during the nine-rnonth perio¿,February through October. MVD will sweep through the City pedorming clean-ups routeby route, one week assigned per route, each individual customer withiri the routefootprint receiving their clean-up on their assigned collection day. Material allowancesper customer are listed in the chart beJow. Each afternoon of the clean-up, MVD

operations supervisors will survey the area to be seruiced on the following day, and willassign the appropriate amount of labor and equipment to ensure that the materlalsplaced out for collection on that entire route day are collected and that the area is leftcompletely clean. The next morning MVD will sweep back through the prior day's area

to make sure additional materials haven't been placed out by residents before tacklingthat day's route.

MVD will rnanage outside scavenging of materials through the timed release of direct-mail information to customers, which will be sent via first class mail in waves, by route,approximately ten days prior to the scheduled week to allow residents approximatelyone week to prepare. lnformation will also be posted to MVD's website. The events can

be advertised in local newspapers and other online sites, depending upon how sensitivethe City may be to scavenging activity.

Option 2 Neighborhood Clean-Up Allowances - Per Event

Mate¡ial Allowance

Bulky ltems - Less thán 200 pounds and 7' in length.

Appliances, Furniture, Lumber Per C¡ty Stondords

Bagged Material

Solid Woste

Recycloble Mote¡íols

Orgonìc Materiols 'Bulky ltems

Applionces, Furniture. Lumber, Etc,

Tertiles

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Building Supplies

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City of Fresno: Residential Solid Waste, Recyclable Materials ahd Organic Mater¡als Serv¡ces - B¡d File f9211

Section 2 - Technical Proposal for Collection Services

Technical Proposa I for Collection Services

2.4 lmplementationPlan

The objective of this Section is to convey how MVD wilt expand and roll-out .residential 2 collection

services in Fresno according to the City's requirements outlined in its RFP lor Residentiol Solid Woste,Recycloble Moteriøls, ønd Organic Moteriols ServÍces. As highlighted throughôut this Proposal, MVD has

established infrastrusture and operations throughout the local area, and in particular as a currentcontractor in the City of Fresno, rendering commercial collection seruices to the South District, TheCompany is familiar with the service area and has implemented the City's requested scope of services inother local jurisdictions provided in Section 1. As with the commercial roll-out, MVD looks fon¡¡ard tocollaborating with Clty staff once again to roll out the selected services in a seamless manner,

MVD is committed to working with the City to ensure compliance with State-mandated diversionobjectives as well as helping to create an enhanced quality of life in Fresno. lmplementing and operatingprograms w¡th that demonstrate partnership between City and Contractor and that feature strongcommunity involvement and diversion components have been keyto MVD's success with its cities.

General Approach to Services

MVD will provide all labor, supervision, materials, and eguipment necessary to provide for theautomated collection and disposal of refuse, and the automated collection and processìng of recyclablemåterials and green waste from all customers utilizing the equipment indicated in previously in thisSection. Procuring and utilizing units from the City's existing fleet, MVD vehicles meet and exceed thehighest equipment specifications and safety standards in the industry.

MVD ensures all vehicles will, at alltimes, meet all specifications set forth in the RFP and this proposal,and are and will continue to be fully compliant with all environmental standards, rules, and regulationsincluding those set forth by the US EPA, CAL/EPA, the California Air Resources Eoard (CARB).

MVD will continually promote recycling and organics participation at every opportuníty to all customersthrough the methods indicated in this Section.

A smooth transition is a critical element to the success of a new program and in building confidence andrapport with customers. Section IV provides a summary description of MVD's past experience with newprogram and contract start-ups, as indicated in Sect¡on 7.

2 Res¡dential ls defìned as premises w¡th less than five un¡ts designed or used for res¡dence or dwellìn& whether permanent or temporery in

nature Idfaft Agle€mert],

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File H9211

Section 2 - Technical Proposal for Collection Services

MVD is known for its well organized and systematic planning and implementation of new contracts withpaft¡cular emphasis on excellent communication between MVD, the City and the service recipients priorto, during and after the start-up of a new contract. With every new contract, MVD prepares animplementation plan that details the d¡vision of d'uties and responsibilities among the various keyemployees, specific tasks and procedures, timeline for completion, and checklists for completion ofreguired tasks, To ensure a smooth and orderly transition MVD's lmplementation Plan begins upon theexecution of the contract. A preliminary Implementation Timelîne. Detailed ¡nformation relative topublic education is included in Section 2.

Recruit and Train Displaced Workers

As previously done in connection with implementation of commercial collection services in Fresno, MVDwill host an open house for displaced City workers. During the open house, MVD will present an

overview of the Company, MVD policies and procedures, and will explain and guide prospectiveemployees through the application process. Attendees can also have all of their questions answered onthe spot during a question and answer period.

Staffing Plan

ln order to preserve safety as the highest priority, MVD employees are experienced in their individualareas of expertise, are active rnembers of the solid waste industry, and many of the employees engagedin local area operations have been so for many years, MVD will provide extensive training and guidance

to new employees and continuing training to existing employees such that MVD's employee pool

consists of only the most highly qualified personnel to perform all duties associated with this contract.MVD will also seek to recruit Fresno residents for open pos¡t¡ons wherever possible and appropriatethroughout the term of the Agreement Every rnanagement tearn member involved in the transition has

extensive experience in successfully implementing new municipal contracts.

ln¡tial Scoping Session and City Staff Participation

lmmediately upon contract award the key transition team members will meet to review and outline allprogram requirements and sþecific requirements of this contract. The MVD team will be fullyaccountable in meeting all program objectives, key contractual requirements, timelines, and Ímportantmilestones, as well as to assign specific responsibilities to MVD staff and monitoring performancerelated thereto.

An overall detailed implementation and transition plan, based on the above and the generallmplementotion Plsn included ín this sectíon will be fully developed in the two weeks following contractawaid, as well as a summâry outline,of all operational and administrative obligations and requirementsas per the Agreement. MVD will work in a consultative manner with City staff in order to both meetcontractuäl requirernents, seeking input and approvals as appropriate throughout the process.

City of Fresno: Resldential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File Ë921r

Section 2 - Îechnical P¡oposal for Collection Services

rl i

Transition Team Responsibif ities

This trans¡t¡on team will be responsible for implementing the transition plan and erisuring a smoothservice takeover in the service area(s). The detailed plan will include:

r' Adoption of existing routes;J Transferring customer account information to MVD's Encore customer management system and

ve rifying customer information ;

,/ Matching displaced workers to their current routes in as many cases as possible or as desired by the' ernployee;

'/ Procuring the quant¡ty and type of vehicles and equipment needed from the Cíty and shifting them' method¡cally out of àervice in order to properly identify them as per City requirements;

'/ Training personnel;/ Documenting the condition of carts and making plans to exchange those in need of repair;/ Preparing informational and educational materials for residential customers;/ Rolling-out a public education and informational program during the start-up period;,/ Refining the ongoing public education program to City preferences and contract requirements;'/ Blending Fresno contract customer service performance requirements and program/contract

specifics into MVD's existing customer service program;/ Conducting employee training; and/ Establish reporting requirements for the City and to City preferences.

ln addition to implementation responsibilities, MVD key personnel will utilize its existinf communitychannels in Fresno and expand those in order to involve itself with comrnunity relations activities, civicorganizations, public education, and program promotion with respect to its residential customer base tofurther zero waste prograrn objectives and maintain visibility and a good standing as a responsible andinvolved corporate citizen,

MVD's key transition team members will meet once a week (or more frequently, depending upon thecircumstances) throughout the stärt-up phase of the transition to ensure that ell goals, objectives, andtimelines are met. MVD's designated contractor representatives will meet and/or communicate with theCity weekly, wath updates regarding the implementation and transition process.

Customer 5ervice during Transition

Customer Service Representatives (CSRs) will handle service and billing-related inquir¡es and customerconcerns and requests with the courteously and efficiently. MVD CSRs undergo extensive initial andongoing training to ensure the highest quality of service to MVD customers. MVD representatives aretrained in customer service techniques such as:

r Utilization of MVD's phone system;r Customer interaction protocol;

CiÇ of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File #9211

Section 2 - Technical Proposal for Collection Services

ö MVD policies añd procedures for responding to any serv¡ce or billing concern;¡ Use ofthe customer account database and all features.

Fresno City Customer Serv¡ce Reference Manual

MVD's customer service resource manual will be updated to include information perta¡ning to the newFresno contract, These are some of the items the resource manual will address:

1) Key contract provisions, including , for instance, information regarding rates, service types, billingand payment procedures, pick-up schedules, hours of collection, container set out requirements,procedures regarding additional containers and container replacement, e)dra pick-ups, overageallowances, special events-such as holiday tree collection and clean-up events, drop-off programs(if applicable), acceptable recyclable and organic materials, qualiflcations for fee discounts and theapplication process (if applicable), holiday schedule, and program dos and don'ts.

2l All CSRs are supplied with a surplus of mailers and brochures to be d¡str¡buted to customers uponrequest,

3) How to manage prior billing discrepancies during the interim period. MVD will work with the City todevplop a plan to consistently address such inquiries through the f¡rst few billing cycles according toCity expectations and preferences.

Equipment Acquisition

Vehicles

Upon contract execution, MVD will procure all of the necessary vehicfes from the City to perform itscollection responsibilities. MVD will coordinate with the City to ensure the vehicles reflect Citypreferences in signage and painting.

Carts '

MVD will procure the City's carts and will ensure there is an ample buffer inventory for exchanges. MVDgenerally maintains a cart inventory of approximately five percent at all times. For uniformity, MVD willcontinue to procure Toter carts.

Route and Customer Database Development

MVD has successfully achieved seamless transitions to new services when awarded a new franchisecontrast, and has privatized residential collection services as indicated in the experience examplespresented in Section l. MVD intends to obtain detailed route maps and customer information from theCity as soon as the contract has been executed, and will take over collection routes utilizing the samecollection personnel wherever possible in order to ensure the transition is seamless. As customer data is

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materíals Services - Bid File f¡9211

92I

Section 2 -Technical Proposal for Collection Services

input into MVD's Encore customer management system, routes will also be assigned based on the City'sroute information. Encore also has a route optimization feature which will be used to improve the safetyand efficiency of routes within existing collection days. Route maps will be created and submitted to City

staff for approval prior to implementation.

As is evidenced in the routing details included in the reference projects as part of this Proposal and

through the routing methodology provided in this section's Appendix, MVD places great importance on

¡ntell¡gent, efficient routing. Because of this, during the first six months of service, MVD operations staffwill review all routes to ensure they are as safe and efficient as possible, MVD will always, to as great an

extent as possible, try to maintain each custome/s collection day even when implementing a routesequencing change.

As a key component to our start-up and transition, MVD will-prior to the operations start date-conduct a thorough field audit throughout the service area to ensure MVD is completely familiar withthe routes. The audit may include route shadowing, especially in medium to high density areas. MVDpersonnel have already conducted a preliminary field survey in the service area(s) as a precursor tosubmitting this proposal in order to assure an accurate Price Proposal. This preliminary assessment willbe expanded as pðrt of the full audit to be conducted by MVD during the pre-startup phase.

Preli m inary Custorner Database I nformation

lnitially, MVD will use the customer account information received from the City to create a preliminary

database suitable for checking routes and to create an ¡n¡t¡al customer database that wlll form the basis

for future billing and work order preparation. MVD plans to complete this step through receipt of datafiles from the City,

Development oi Routing System and Route Sheets i

Prìorto commencement of collection service, MVD willcreate a routing system to enable the productionof route sheets and route maps to be used (daily) by our drivers (and updated daily for service level

changes). MVD will generate sequential routing, route entry and exit points, and route maps for theareas to be served. The routing information witl be up-loaded back into MVD's customer managementdatabase.

MVO will design and develop routes in an effort to minimize impacts on service recipients. To the extentpossible, MVD will develop route patterns and schedules aligned to current collection schedules tominimize service interruptions and unnecessary confusion to residents.

ln addition to the above, MVD will pay close attention to the following issues when developing routes:

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - 8id File #9211

Section 2 - Technical Proposal for Collection Services

Hours of operationMVD determines the number of vehicles to be utilized and the ways in which these vehicles will berouted given the parameters of collection hours that are specified by the draft,4 grcement.Trafflc patternsMVD attempts to design routes that are opposite to peak trãffac patterns within the service area(s),to the extent poss¡blê or applicable. This is not only beneficial to the service area but increasesMVD's col lection effici enci es.

Transition Timeline

The transition timeline on the following pages reflects the elapsed t¡me necessary for each of the itemsdiscussed in this section.

Schedule of Key Operations Tasks

This schedule anticipates time requirements to accomplish task. .lt can be programmed toaccommodate any contracl award date and adjusted to reflect subtasks.

Execute Agreement with cityThe official ramp up period begìns, which triggers all other tasks, below.

.

Procure VehiclesMVD procures collection vehicles and containers from the City for the Service Area.

Conduct Route ShadowingFollow and document residential collection routes, Unique property attributes such as non-conforming collection points, backyard service recipients, and hard-to-service areas will be noted,

Database Matching/Finalize Routes and Route MapsDatabase information gleaned from route shadowing and auditing is matched against accountinformation obtained from the City.

Host Displaced Worker Open House and Job FairPresent an overview of MVD, its policies and procedures, employment requirements, and guidepotential employees through the application process,

Driver and Customer Service Review SessionsMVD will conduct driver and customer seruice review training sessions to ensure everyoneunderstands service parameters and is familiar with their new positions.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Mater¡als Servíces - Bid File #9211

Section 2 - Technical Proposal for Collection Services

Schedule of Key Administrative Tasks

Develop Public Education and Outreach and Other Collateral MaterialsThe Company anticipates beginning coord¡nation efforts with the City on an organized, effectiveoutreach campaign based on some or all of the ideaspresented in this subm¡ttal. MVD will conduct a thoroughreview of all materials, including standard forms, and willrevise them according to Fresno seryice requirements. MVD is' confìdent that, working collaboratively with the City it can

implement an effective customer education program ín thenecessary timeframe.

¡ Print Collateral MaterialsAs soon as all collateral materials are developed, printing willbe expedited.

Mail lntroductory Packetslntroductory packets which announce the transition to MVD âs

the new seruice provider, but which also reassures residentsthat the same great people will be rendering services. lntroductory packets could also includeinformation about billing and rate changes, as approved by C¡ty staff.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Mäterials Services - 8id File Ë9211

95

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Sect¡on 2 - Technical Proposal for Collection Services

City of Fresno: Residential 50l¡d Waste, Recyclable Materials and Organ¡c M¿terials Services - B¡d F¡le fl9211

%

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Section 2 - Technical Proposal for Collection Services

Technical Proposal for Collection Services

2.5 Billing

MVD has reviewed the RFP and draft Franchise Agreement as to the City's billing and collectionrequirements. MVD currently performs billing services in the jurisdictions referenced in the followlngchart. Billing samples are included as Exhibit A.

lurisdiction Generator

County of Fresno

County of Fresno

County of Fresno

County of Kings

County of Kings

County of Kings

ArmonaArmonaAvenalAvenalCoalinga

Coalinga

Firebaugh

FirebaughFresno

Huron

Huron

KermanKermanKettleman CityKettleman CityLaton

LatonMendotaMendotaSan JoaquinSan Joaquin

Commercial

Residential

Residential

Commercial

Monthly in Arrears

Monthly in Advance

æ- **vo$!!r iT Af.r"-r*- ....Monthly in Arrears

Monthly in Arrears

lvlonthly inrly in Arrears

.Monthly in Advanc_e

Monthly in Arrears

l,ioirttrty in Advance

.lYolll]v in ArrearsMonthly in ArrearsMonthly in ArrearsMonthly in ArrearsMonthly in Arrearsniodth[ ¡n ÅrrearsMonthly in Arrears

Monthly in Arrears'Monthly in Arrears'Mont-hly Ín ÀrreaisMonthly in Arrearslvionlhiv in Rrieari

City of tresno: Residential Solid Waste, Recyclable Materials and Organíc Materials Services - Bid File f9211

SectÍon 2 -Technical Proposal for Collection Services

Billing Procedures

The following schedule conveys MVD's billing procedures and process. MVD proposes billing Fresnoresidential customers monthly in advance.

! step

.1

I

2

3

4

5

5

7

I

9

10

11

- Descriotion

I CustoÅer service change requests are completed, and financial adjustmentsare posted.

Customer service change requests are verified by the accounting managerto find potential data entry errors.

Excel reports âre run to verity customer accounts are coded with .correct

billing cycles, service codes, and division codes.

Aging reports for all lines of business are printed.

Recurring billing charges are assessed and posted.

Statements are printed by aging categories.

Summary billing reports are printed.

Aging reports for all lines of business are printed.

Charges are closed.

AginE category data is adjusted for new billing period.

Statements are taken to outsourcer for mailing.

As indicated in Section 1, MVD has implemented several city-wìde collection contracts and hassuccessfully created customer/billing databases ìn those processes. Because the City is the serviceprovider at this time, and based on the excellent quality of the information provided by the City toproposers in thls process¡ MVD anticipates having no problems transferring and data and initiatingbilling of Fresno residents,

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Meter¡als Services - Bid File fl92f 1

Section 2 -Technical Proposal for Colfection Services

Transmission of Billing Data and Sample Invoices

MVD utilizes Encore softwere. All account and act¡v¡ty information is easily formatted and outputthrough any number of built-in reports or can be downloaded into Excel where it can be easilymanipulated ¡nto report formats that are agreeable to the City. The software is very versatile, Samplereports are included in Exhibit 8.

Accu racy of I nformation

Billing information will be verified prior to start of service through the physical route auditing process, as

well as through the response received from customers once notification of tha new progrâm has beensent out. Furthermore, MVD cont¡nually audits ¡ts routes, lf ever there is a discrepancy, or a customerdoes not understand his/her bill or she/he believes there ¡s an error, MVD sends a customer servicerepresentative to the site to check the premises and meet with the business or property manager, ifneed be, in order to correct any inaccuracies. Also, MVD is very proactive with contact¡ng ¡ts customersby telephone.

Customer Service Relative to Billing Dernands

MVD's customer seruice department responds to billing inquiries at the t¡me of call. lf research is

required Customer seruice response time is responded to in less than t hour. lf a site visit from a

manager is required it is accomplished in a ?4 hour period. For this contract, MVD will add twoaccounting clerks per District. F

Bad Debt Experience

MVD has a very low percentage of delinquentaccounts, The Company has an organized and proactiveapproach in place to minimize the accumulation or contlnuation of bad debt. Customers are called whenaccounts are 45 days past due. They aregiventhe opportunityto make a payment byVlsa, MasterCard,Discoveç or check by phone. lf payment is not reèeived by the next service day they are put on stopservice. The service is interrupted for three weeks. lf no payment has still been received a secondphone call is made to advise the customer that the container will be removed if payment is not received.MVD will accept low good faith payments to prevent containers from being removed and using a thirdparty collection agency.

MVD's bad debt ratio is low compared to the industry average, with an approximately Lo/o ol revenuesowed attributable to bad debt.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File #9211

Section 2 - Technical Proposal for Collection Services

Technical Proposal for Collection Services

2.6 Customer Service Plan

MVD is committed to providing services of the hiehest qualitv. Also, the Company intends to deliverthose services with oride and Þrofessionalism. Furthermore, MVD understands and keeps in mind thatservice is all it has to offer. Not onþ that, but none of the affiliate companies would have been inbusiness'as long as they have if rendering excellent service weren't such a high priority.

MVD's key personnel, through their extensive personal histories as well as respective compeny histories,have learned that people generally do care about their garbage, which becomes quite evident if theyever happen to experience a missed collection-or even a perceived missed collection. People havecome to rely on it, and because of that, if the company fails to deliver as promised, it's verydisappointing.

The Company's commitment to quality service that when customers are dlsappointed or upset, theMVD's approach ls to avoid labeling the as to who is right or wrong, but instead simply seek a solutionthat satlsfles the customer. MVD customer service representat¡ves are also continuously reminded tothink like a customer.

MVD's Customer Service Manager, Lisa Helm ¡s committed to quality performance, which is evidencedby the longevity and success of her varied career in waste management. She knows how excellentcustomer service sustains contracts which translate ¡nto revenue and over time, with wise managementmake a company establ¡shed and vital in the community. Lisa's decades experience es a customerservice representative then manager in the solid waste and recycling field. She has a calm, organizeddemeanor and a can-do attitude, and will administer this customer service program with the Company'scomplete confidence in her, Please refer to Section 3 to review the resumes of these individuals.

The Company is also fortunate to have on board a talented Operations Manager who relates well todrivers, the public, and can quickly find a resolution to challenging situations and when under pressure.His fairness garners driver respect; his ability to communicate with individuals at all levels and of allwalks of life mákes him approachable.

With these sorts of key people at the helm, MVD is confident that the people component of theCompany will please the City and cilizens of Fresno. MVD knows that it's the frontline people that makeall the difference: drivers, customer seruice representatives. field service supervisors, The cleanlinessand appearance of company equipment also makes a statement, as does the appearance and energy ofthe front off¡ce.

These are the core concepts of MVD's customer setvtce program:

¿ First impressions matter: Whetherthe first impression that registers with a customer is a phone callwith one of our customer service representatives, or the observation of MVD service performanceor driver mannerisms, or the appearance of collection vehicles: friendliness, neatness, simplicity,

City of Fresno: Residential Solid Weste, Recyclable Mater¡als and Organic Materials Services - Bid File #9211

Sect¡on 2 - Technical Proposal for Collection Services

appropriateness, reliability, caring, and concern are allattt¡butes that either help or h¡nder ongoingcustomer relations. Milliseconds count. MVD will therefore always keep this in mind and try tomake an excellent first impression.

Courtesy counts: Most people afe very decent. lt is MVD's experience that even if a customer isangry, when they are allowed to vent their frustrations and feel as though they were treated w¡threspect, they will usually become calm and offer a "thank you" at the end of a call. lf this can beaccomplished, the customer has been won over, and the employee feels relieved. MVD's goal wiltalways be to make the best effort to have customer interactions begin and end on a positive note.

Doing the right thing is always most rewarding: MVD encourages doing the right thing by reviewingproblematlc situations/posing hypothetical problem situations ât train¡ng or coordination meetingsand asking: First, if an employee knows issues will be constructively reviewed they wlll put moreeffort into managing customer interact¡on correctly because they will know their performance ismonitored and does matter. Second, MVD believes that most people know what the right th¡ng todo is, but often either do not feel empowered to do the right thing, or have had past experienceswhere their good decisions and actions were not acknowledged. The Company witl make the effortto recognize good customer service and will always review challenging situations-even when theywere perfectly managed-such that the entire customer service staff can benefit from theexperience.

Customer Service Statfing and Training

The current MVD customer service staff¡ng is comprised of six full-timecustomer service representatives (CSRs). For this contract MVD will addthree new CSRs per District. Each CSR is provided with a resource manualthat lists pertinent details about each jurisdiction, service and programrequirements, and other general information to enable CSRs to promptly,professionally, and courteously respond to customer requests. A copy ofthe resource manual is included with this submittal in a separate binder.

New hires sit with a highly experienced CSR for five days for observationand training. They are then shadowed and coached by a CSR for three weeks. Each new CSR is placed atdesk near the Office Manager so that calls can be monitored and we can continue to improve CSR skills.Formal training is conducted monthly with impromptu tra¡n¡ng daily and weekly depending on need,

Phone Call Metics

All incomingtelephone calls are answered in three rings or less by a human being. Standard protocol isthat a l¡ve receptionist answers on the first ring and directs call to proper department. A CSR will answerthe call directly on the second ring and assist the caller. ln the rare instances when the telephone rings athird time, a manager will answer and assist the caller. MVD's average hold time is less than twentyseconds

ffi nrfl ilnßuiltÍ$üt$ffi il!ilft fl HIIilff f trtffi üCity of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File #9211

10LI

Sect¡on 2 -Technical Proposal for Collectlon Services

ridllìl,ttJ ti lf¡lflft{

The following charts indicate the types and volumes of customer service inquiries MVD CSRs manage.

' City of Fresnô Customer Service Calls 2012

Mid VâlleyOfspoiål

recelved17,817 phone

call¡ ln 1012,

Mid Volley Disposol on overoge services 43,795 containeß per month. We ore proud of our phenomenol success inkeeping customü comploints ond míssed services to less thon o holf % of the totdl sev¡ces performed eoch month.

Missed Pick Ups & Complaints

Aug-1 2

J ul-12

Jun-l 2

May-I2

Apr-12

Mar-12

Feb-1 2

Jan-1 2

Dec-11.

lilCity of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File d92ll

Section 2 - Technical Proposal for Collection Services

MVD prides itself on delivering customer service of the highest quality and professionalism. MVDmanagers continually remind their employees that customer seruice is all the Company has to offer.

permanently resolves the service issue,

MVD's key personnel, through the¡r extensive industryexperience, have learned that customers really do care aboutthe quality of their service, which becomes quite evident ifthey ever happen to experience a missed collection-or even

a perceived missed collection. MVD customers have come torely on the Company's consistent service.

When MVD does miss the mark and a customer ¡s

dlsappointed or upset, MVD's approach ls to listen and thensimply seek a solution that satisfìes the customer and

MVD customer service representetives are regularly reminded tothink like a customer in order to access a solution-oriented frame of mind that is soothing and

constructive.

MVD's Customer Service Manager, Lisa Helm is committed to quality performance, which is

demonstrated by the longevity and success of her career in waste management. She knows howexcellent customer service sustiins contracts which translate ínto revenue and over time, with wise

management make a company established and vital in the community. Lisa possesses decades ofexperience as a customer servÌce representative then manager in the solid waste and recycling field, She

has a calm, organized demeanor and a can-do att¡tude, and will administer this customer serviceprogram with the Company's complete confidence in her.,

Lisa has developed and implemented a comprehensive customer service training program that features

a detailed resource manual, one-on-one training, call monitoring and review, scripted responses tocommon inquiries and concerns, and planned, formal customer service staff meetings. Please refer toSection I to view lisa's qualifications.

MVD is also fortunate to have on board a talented Operations Manager who relates well to drivers, thepublic, and can quickly find a resolution to challenging situations and when under.pressure. His fairnessgarners driver respect; his ability to communicate with individuals at all levels and of all walks of lifemakes him approachable.

W¡th these people directing and overseeing operations and customer service, MVD is confident that thepeople component of the Company will please the County and citizens of Madera. MVD knows that it'sthe frontline people that make all the difference: drivers, customer service representat¡ves, and fieldservice supervisors. The cleanliness and appearance of company equipment also makes a statement, as

does the appearance and energy of the front office.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materîals Services - B¡d File #9211

lype and Description of Customer Management Software Used

MVD uses a software applicãtion called Encore, which is Microsoft cert¡fied. The Company selectedEncore because of the dispatching and customer service components. Route or service problems can betracked easily at the route level, which transfers into customer notes. Customer service note-taking andservice orders can also be created and tracked efficiently. Online payments are processed through a webportal, Encore has user-friendly Crystal Reports built into it as well. Sample reports are included inAttschment D.

Capabilities and features lnclude:r Customer Management. lntegrated Emallo Customer Website Portalo Accounts Receivable Billing and Accounts Payable Accountingr Brokerage Tracking with Shipping Reconciliationr Onboard Truck Computer lntegration¡ On-Call Services, Roll-Off, Recurring Route Mapping and Route Opt¡mizet¡ono Scale Management: Transfer Station, Landfill, MRF, and Recycling Facilities¡ Link Pictures and Attachments to Scale Tickets and Work Orderso Split Ticket Multiple Customer, Multiple Material loadsr Recycling Management: AP, AR, and MRt Managementr Process, Purchase Order, and Sales Order Managementr Fleet and Equipment Management and Maintenance

Responding to Cornmon Customer Concerns

Although MVD prides itself in having developed systems and a culture of full accountab¡lity to avo¡doperational missteps that generate customer concerns, MVD management of common customerconcerns is presented below, As ¡nd¡cated in the draft Agreement, MVD will provide reporting to theCounty relative to customer complaint abatement, within five days of the occurrence. However, _MVDattempts to permanently resolve all customer complalnts within a 24-hour period.

Missed Collections

MVD has a rniss rate of approximately one percent, well below the industry average. Route supervisorsspend nearly 100 percent of their time superuising routes in the field to make certain that all driver tasksare completed as scheduled. lf a missed collection occurs, MVD's dispatcher makes every attempt tocollect the miss the same day it is reported, eitherthrough the assigned driver (if still out on the route),a driverfrom a neighboiing route, or through the route supervisor. From tirne-to-time a miss must becollected the following morning if reported late in the workday.

Sect¡on 2 - Technical Proposal for Collection Serv¡ces

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - 8id File Í9211

Section 2 - Technical Proposal for Collection Services

Spills and Litter Resulting from Collection Activity

MVD only receives spills and litter compla¡nts during windy conditlóns. MVD trucks are equipped withlids that are regularly utilized, and roll-off loads arê tarped. Again, route supervisors are primarily in thefield rather than vyorking behind a desk. They are tasked with checking collection routes to ensure allcollections have been made and collection areas and streets are clean.

Broken or Missing Contâ¡ners

MVD drivers call in all damage immediately regardless of severity and the route supervisor follows up todocument all findings. Drivers are tasked with reporting containers in need of repair immediately. tfpossible, repairs are made on-route immediately, as is the case with a broken lid or caster, lf damage is

mofe severe the container is exchanged immediately and the damaged container repaired.

Noise Complaints

MVD's routing approach protects residential areas which are more sensitive to collection activity noise.

Commercial stops located adjacent to residential areas are seguenced toward the end of the route so

that early morning collections do not occur and disturb residents. Even though MVD has neverencountered this problem, if persistent or multiple noise complaints were received in connection with a

particular route the matter would be investigated immediately and routing changes made to mltigatethe problem. MVD's Operations Manager would follow up to make certain the problem waspermanently resolved.

Traffic and Sidewalk Obstruction during Collection

MVD prides itself on ma¡ntaining open lines of communication with the Public Works and emergency

response personnel in the cities it serves, which helps the Company anticipate when road constructionwill occur such that collection activity can be temporarily routed around it. lf an unfoieseen obstructionoccurs, MVD drivers are to call the matter into Dispatch and work through an MVD-approved solution.Communication with the jurisdiction and/or affected customer(s) occurs as appropriate-

Safety Around Collection Vehicles During Operations

Drivers receive extensive driver training, as fully described in the preceding subsection Training and

Policy Coverage.

Website

MVD's website address is: WWvy.midvallevdisposal.com. MVD considers its website to be more than just

a web presence, but rather a fully functioning and interactive website that not only provides currentinformation but also keeps MVDs public up to date on its activities, as well as provide online services

such as the ability to pay bills on line or reguest a waste audit. For Madera County, MVD will again

update its website with a pull-down menu specificallyfor Madera County residents and businesses.

City of Fresno: Residential Solid Waste, Recyclable Mâterials and Organic Materials Servíces - Bid File #9211

Section 2 -Technical Proposal for Collection Services

Technical Proposal for Collection Services

2,7 EnvironmentalConsiderations

MVD is committed to environmental stewardship, which is evidenced through the Companfsprogressive initiatives and plans to increase and enhance recycling operations as well as develop full-spectrum organics processing at its Kerman facility. MVD also walks its talk by having implementedresource recovery programs and buy recycled procurement policies throu3hout its own operations. Thefollowing specific plans are described to address the City's RFP requests.

Clean Air Vehicles

MVD procured the C¡ty's LNG collection vehicles in connection with Fresno's commercial contract andhas been pleased with their performance. MVD will also procure LNG vehicles for the North District and _LNG vehicles for the South District from the City in connection with any associated contract award.

These vehicles will be put into immediate service on the residential contract. Furthermore, as indicated

in Sectlon 2.3.? - Orgonic Moteríols Processing, MVD has plans to scrub biggas to fuel its fleet in thefutu re. That's a longer term comm¡tment and investment that is clearly worth pursuing.

Hazardous/Unpermitted Waste

lf MVD personnel encounter hazardous or unpermitted waste during collection activities and prior to .

dumping an attempt will be made to contact the generator immediately. lf the generator proves

unreachable, the material will be left, and a Corrective Action Notice will be applied to the containerindicating the reason for non-collection and also directing the generator to the Alameda CountyHousehold Hazardous Waste proiram. This information will be recorded in MVD's customer account

database.

lf the waste poses an eminent threat to people or property MVD will immediately contact the closestFire Department. ln the case where the hazardous material are discovered at the landfill or transferstat¡on and an attempt will be made to identify the generatorto request removal and proper disposal. lfidentification of the generator is not possible or the generator fails to claim and handle the material,

MVD will arrange for proper disposal of it.

The generator, if known, will be billed for proper disposal. Additionally, MVD's hazardous waste, spillresponse, and fire response protocol ìs included on the following pages. MVD will implement a Load

lnspection Program to further address this issue as per the drafl Agreement.

106

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ú r) ,i'

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Serv¡ces - Bid File #9211

Section 2 - Technical Proposal for Collection Servicesa

Hazardous/Waste Screening Protocol

The objective of MVD's Hszsrdous/Unpermitted Waste Screening Protocol is to prevent forbiddenwastes from entering the waste streâm through any of the weekly collection services or special servicesprovided by MVD, and/or to mânage forbidden wastes inadvertently collected through weekly collectionor special services. Hazardous/unpermitted wastes lnclude:

1l Materials that are not Solid Waste, including Universal Waste3, householdhazardous waste and other hazardous waste, medical waste, radioactive waste;

2l Waste tires in excess of the l¡mltations prescribéd ¡n 14 CCR 17355(b) or reduced involume as required in 14 CCR 17355(A);

3l Any other materials that cannot be disposed of in class llsanitary landfill describedin 27 CCR 20250.

Fully-automated collection systems protect worker health and safety by creating a buffer betweenworker and waste. These systems make it more challenging to detect the entry of unpermitted wastesinto the waste stream. The following components deter improper disposal of unpermitted wastes:

Customer EducationMVD will educate its customers about hazardous/unpermitted wastes through every outreach campaignelement used.

Employee EducationAll new employees will receive training regarding hazardous/unpermitted waste ¡dentification¡ safety,and notification procedures. Furthermore management, drivers, and custorner service representat¡veswill receive annual hazardous/unperm¡tted waste screening protocol tralning. Drivers will be remindedabout the importance of unpermitted waste screening protocol at each monthly safeÇ meeting, and willreceive additional training as needed based on field incidents. MVD will include identifìcation training ofunpermitted wastes with special emphasis on hazardous wastes, flammable, combustible, and exploslvematerial. Upon contract award, MVD will circulate its draft Hazordous/Unperm¡tted Woste ScreeningProtocol to the MVD/Fire Department for review and input such that the final document reflects localjurisdiction emergency response policy and procedure.

0etectionBecause collection services are automated, MVD collection vehicles feature hopper cameras and driverswill be instructed in their use.

! Universal Waste means the?ardous wastes that are universal waste fas defined and l¡sted, respectively, in 22 CCR 556273.9. such as batteries

thermostats, lamps, cðthode rey tubes, computerS telephones, answering machines, redlos, stereo equipment tape pleyers/recorders,phonographs, vldeo cagsette players/recorders, compact disc players./recorders, calculators. some appliancet aerosol cans and certainmercury-contelnlng dev¡ces) exempt from the ha¡ãrdous waste manaBemenl reguirements of ch¿pter 6,S D¡vision Z0 of the Cãlilornìa Heallhaôd safety code Ðnd sub¡ect 1o the universal waste mâoâgemenL requirements of chapter 23 of Division 20 of the california Health and safetycode-"

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Serv¡ces - Bid F¡le #9211

Section 2 - Technical Proposal for Collection Services

4ls)

6)

7l

Spill Response Plan

ln the event that any unpermitted waste or hazardous waste is disposed with the solid waste stream,immediate and appropriate action will be taken to contain and remove it. Operations personnel are

trained both in unpermitted/hazardous waste identification and appropriate responses tounpermitted/harardous waste incidents. MVD's inside risk management team maintains OSHA qualified

on-site responders to hazardous material incidents in accordance with OSHA Standard 29CFR1910.120,

Hazardous Waste Operations and Emergency Response. Periodic training is provided and recorded in

order to ensure skill proficiency.

The following procedure is used for identifying and handling hazardous/unpermitted weste:

1l Notification of hazardous/unpermitted waste disposed of in the waste stream will be communicatedfrom the driver in the field to dispatch.

2l Dispatch will notify an operations manager for determinat¡on of appropriate response level.

3) Simultaneous contact will be made with the malntenan,ce department for the spill response team toassemble and disburseCoordinating instructions will be issued and executed.

Trained personnel will be assigned the task of inspecting any material suspected of containing

hazardous/unpermitted waste. lnspection involves identification of both labeled and unlabeledhazardous/unpermitted waste conta¡ners and material.Proper emergency response agencies for oversight ând ãssistance to.ensure public safety. ,

An apprrjpriate course of action/customer education based on the seriousness of the waste involvedwill be decided upon and taken.

Should the driver determine without any question or doubt that the unpermitted waste is nothazardous, the following procedure is used:

1) The unpermitted/nonhazardous item will be removed, placed safely back onto the premises and

tagged with a non-collection notice indicating the reason for non-collection,2l The driver will immediately call the dispatch center and report the incident, including street address

and time item was detected.3) D¡spatch will relay this information to customer service.

4l A customer service representative will phone the customer to inform them of the event, why theitem was left, direct them to proper alternatives for reuse or disposal of the item, and respond toany questions the customer may have,

5) A follow up postcard with detailed information on unpermitted wastes will be sent to the customer.

Fire Reporting/Response Plan

These guidelines are to be followed in the event a truck fire breaks out in the body of a coltection vehicleyou äre driving. These types of fires can be caused during compaction where hazardous or combustible

mater¡als are inadvertently and unknowingly collected.

C¡ty of Fresno: Residential 5olid Waste, Recyclabte Materials and Organic Materials Serv¡ces - Bid File #9211

Section 2 - Technical Proposal for Collection Services

1l2l3l

ldentify origin of fire: whether it is related to the electrical system, the motor, or the hopper.lmmediately calldispatch, theñ 911for tire Department Response.

Continue sweep¡ng the blade or using the packer if the f¡re is inside the truck body until youhave found a safe placê nearby to eject the load: such as an open parking lot or an open plowedfield. DO NOT eject loads near schools or shopping center parking lots, near businesses, on thefreeway, or neer trees or overhead wires-Keep your radio clear for emergensÏ communications.Stay calm: the Fire Department and your supervisor will be there shortly.

NoteThe most important safety consideration is your own life and the lives of others. The Company'scollection equipment can be replaced; a life cannot.

Environmental Com pliance

MVD runs a fully compliant operation, as evidenced in the results of its recent DOT inspections providedin this section's Appendix and as documented on the CalRecycle website under facility inspectionreports. The entire history going back to 2008 indicated full compliance. Screenshots of the inspectionresults are copied below-

4)5l

Counry: Fresno

EnforcemsDt Agenl: County ol Fresno

rrr8usltess Own6n M¡dValley Disposal. lnc.L¡nd Omeñ KâlÞökofl ProÞef lê! LLC

ieoul!tory S¡olu¡: Notilìcalion Operlt¡oml 5lrl,ur: AÊtÍv6 lnlpoctlon Froquency: Ouarterly

rrr0n009 11ß0,2009

8{r2l?{t09 08¡24¡2009

5119A009 06fr3r2 009

g1¡4qgg 04rr)22009

LE Perlodìc

LEA Për¡odl€

LEA Periodic

l-EA PÊrlodÈ

No Viot¡ùons ry Areas of Concern reportod

No Violstions or Arees of Concem rcported

No V¡01âlons or fuëar ol Concem reporled

No Vìolstlons or Ar€as ol Concem ¡epo¡led

City.of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File f9211

{'.Ei1¡j

Owner: l{id Vrlley Dlspossl,lncL¡nd Owno¡: l(eþaloff Propenles LLC

Sbrus: Nóùncållû¡ Operlllolro] SÎôtü!; AclþÊ ltrspêctlon Fr6qüancJ: 0usnerly

No Vìotädons or Aress of Cmcm08Br¿0tl

0r/05,20il

03102201 I

LEA Pôrlod¡c

LEA Pcrlodh

LEA PÊrloúc

No Vlolaíons orAroã9 ol Coîcm reportod

No Vlolalio¡s 0rAl0ag ol Concsrn roForlEd

Counltr frsinoEnforcwtnl Agont Courty ol Fßsno

OYrnEn M¡dValley Dlsposel, l¡rc

Slrlus: Notil'rceüor Op€Eùon!l St!tus; Aclivô lnspÊctþf, Fraqusnry: Ouarterly

09/28n01 0

ø6n2n010

0ri2s¡20r0

LEA PËrIodIc

LEA Peilodh

IEA Perlodlc

No Vrclation¡ or A¡ca! ol Con6om repoled

No Violitlons or Arees olConcem reporled

No Viol¡tíons u Arsas of Conctrn rEporlod

No Vlolâlions or AroaÊ of Coîcm rôtorlêd

County: FrosîoEnforcamônt AggnL Courily ol Freso

Owner: ílíd Valley Dlsposel, lnc.

land OMer: Keþatbïl Propertles LLC

St¡tue: Notifrc¡tÌon Oper¿l¡onr¡ Statu6: Activs Inspectlon Frequency: Ouarterly

0tn4,2009

06r03f2009

04r02¡2009

LEÁ Pêriodic

LEA Perlodh

LEA Perlodic

No Violátions or ArBas ol Concem

No v¡olállon9 or Âress ofConcem

No Vlolalionr ôr Arêas ol Concsr¡

No Vlohl¡ons d ArsEs ot Concem

Section 2 - Technical Proposal for Collection ServÍces

City of Fresno: Residential Solid Waste, Recyclable Mater¡als and OrBan¡c Materials Services - Bid File fl9211

LL0I

Section 2 - Technical Proposal for Collection Services

Counly: Fresno

Enforcement Agent: Counly ol Êresno

OperðlortBuslness Ownec tuidVËlley Dbpoal, lmLârrd Omor: Kslpâkoil Pmpeftlæ LLC

Status: Nollñcallor Operrllonal Statur: Acttve lnrpectlon F;oqrêmy: OuaIlerll

No V¡d!lions 0r AreEs ol Concem repoled

No \frolalions or fueås ol Conrem

Env¡ronmental Enhancements

MVD is a forward thinking company that prides itself in doing what it says it is going to do and practices

internally the resource recovery programs it implements and maintains in the communities it serves. lnaddition to ¡ts internal resource recovery programs and the facility expans¡on plans highlighted in thisProposal which will benefit the City of Fresno änd its residents for years to come, MVD also has

initiatives and programs in place to address the minimization of environmental impacts associated withits collection operations, encouraging the highest and best use of recycled materials, and supportinglocal and regional markets for recyclables, as described below.

Minimizing Environmental lmpacts

MVD minimizes environmental impacts in Fresno through the use of l-NG collestion vehicles. Thataesthet.ic will be carried through to all of MVD operations through the'expansion of its organicsprocessing facility which will include the production of natural gas to fuel its fleet. ln accordance withthese plans MVD is working on a collection vehicle replacement schedule that syncs with this facilityupgrade.

Additionally, emissions are greatly reduced through the use of the routing tools described in Section 2.6and this section's Appendix which enable the development of safe, optimally efficient routes. MVD

driver and operations supervisor responsibilities include making suggestion for improvements in theseareas. Finally, routes are audited and checked annually to ensure that account data is always up to dateand routes are being driven in the correct sequential order.

Highest and Best Use of Recyclable Materials

This same sensibility is carried through to MVD's transfer and material recovery operations; high grading

resource recovery and expanded processing capacity to capture as many commodities and recyclablematerials from the waste stream is the impetus for the current project which will quadruple the MRFprocessing area and allow fortotal organics processing. The project is desi6ned to facilitate an output ofhighest and best use of all materials throughout every component of the process.

City of Fresno: Residential Solid waste, Recyclable Mater¡als and Organic Materials Services - Bìd File fl9211

Section 2 -Technical Proposal for Collection Services

Additionally, MVD's proposed plans for residential clean-ups prohibit the use of compaction equipmentfor the collection of reusable bulky materials, such as bullding supplies and furniture. ln association withlocal non-profit and charities, MVD will promote gleaning opportunities to these groups in compliancewith the hierarchy of reduce, reuse, recycle.

Furthermore MVD's procurement policies give pricing preference in favor of materials with recycledcontent (as well as local business preference as indicated in Sectíon 71.

Supporting Local and Regional Markets for Recyclable Materials

As indicated in Section 2.2.i - Recycloble Moteriols Morketing, MVD broken its own materials tomaintain direct relationships with commodities buyers in order to get the best pricing and service, andto maintain controloverthe disposltion of the mäterials it moves,

Furthermore, MVD has been assertive in forging markets forlocal agriculture, and has made a tremendous amount ofprogress in providing recycling solutions to area farmers.These efforts are highlighted through the case studiespresented below.MVD has always made it a priority to assist farms in meeting

their agricultural recycling needs. MVD's experience in

agriculture waste diversion includes providing all Fresno

growers a successful recycling progräm that diverts

agricultural plastics, raisin trays, twine, and drip tape from

landfill to recycled into a new product. MVD achieved this

through the expansion of recycling outreach, MVD

continues to expand education efforts to expand

agricultural recyclìng programs through partnerships withgrowers, agricultural associations, bureaus, and public agencies.

MVD's implementation plan' includes integrated diversion programs tailored to meet agriculturerecycling needs, including:

o Raisin Tray Recye ling¡ lrrigatìon Tubingr Triple Rinse Container Recycling¡ Wine Trail Outreach

Raisin TraysMVD has a proven track record of recovering agricultural waste in the jurisdictions it serves. For

example, in 2010 MVD noticed that there were many farmers who were burning their recyclable paperreisan trays. Because of this, MVD launched a new strategy to market its raisín tray recycling program,which provided raisin Browers an alternative to burning, ln 2011 MVD's raisin tray program resulted in

"They'ore o "community minded" compøny

providing a seruice as well os suppoft¡ng

community events and orgonÌzations. I

personolly had the opportunity to experience the

exceptÍonol service provided hy Mid Volley

Disposol in the recycling of poper trøys (roisin

horvest). Mid Volley Oisposal employees

responded the some doy my husbond made the

coll for pickup service!"

Lindo Geringer

Executive Direclor

Kermon Chamber of Commerce

City of Fresno: Residential Sol¡d Wäste, Recyclable Mâter¡als and Organic Materials Se¡vices - Bid File f9211

Section 2 - Technical Proposal for Collection Serv¡ces

incredible success as the Company recycled almost 800 tons of raisin trays, nearly triple the tonsrecycled in the previous year, This resulted in a reduction in the burning of raisin trays, contributing toimproved air quality in the San Joaquin Valley. Expanding the program, during the 20L1 season MVDrecovered raisin trays from over 8,000 acres and over 250 locations, Those 250 locations ranged from asfar North as Madera, to as far South as Tulare and Kings County. ln CentralValley, MVD has worked withover 40 growers. Raisin trays are mixed with cardboard materials at MVD's materials recovery facility,baled and prepared for recycling.

MVD's raiiin tray recycling program Ìs advertised in agricultural newsletters and magazines such asproduced by the Farm Bureau for Frésno and Madera County, MVD has also worked closely with theRaisin Bargaining Association (RBA) and presents during grower workshops and luncheons, ln addition,MVD pr¡nts flyers and delivers directly to growers and paper tray vendors in the Fresno and MaderaCounty area. MVD stays in contact with the Air Resources Board (ARB), to keep updated with regardsburn regulations, ARB also helps to make farmers aware of the recycling options through MVD. MVD has

annual memberships with the Fresno County Farm Bureâu and also participates in the KermanAgricultural Show each year. MVD's goal is to work closely with growers and make them aware of theimpacts they make when recycling Raisin Trays and other agricultural-related materials.

lrr¡gat¡on TubingAnother example of a successful agricultural recycling programimplemented in 2011 was the collection of drip tape (plastic irrigationtubing) from MVD agricultural customers. MVD planned a well-organized collectíon prograrn for used drip tape collected fromnumerous farms in Western Madera and Kings Counties. ln its firstyear MVD recycled 545.67 tons of drip tape.

Triple Rinse Container RecyclingTriple rinse containers are containers of hazardous material that need to be rinsed with water threedifferent times before being able to be recycled into non-food containers. Since most farmers usevarious hazardous insecticides on their crops but have no way to rerycle the containers that hold thismaterial, MVD became a certified collector for triple rinse containers in 2010. This enables the Companyto commence a pesticide contàiner recycling program, which is much more convenient for farmers thanhaving to wa¡t for a once a year recycling drop-off event. ln 20L1 MVD collected nearly 100 tons of thismaterial through its program. Farmers may opt to self-haul there containers to MVD's materialsrecovery facility in Kermin and recycle thern free of charge, or they may call MVD to schedule on-siteremoval of triple rinse containers through the location of a roll-off container or hiring MVD to supply thelabor to remove the containers from the premises.

The Wine TrailAfter the success of the MVD's Raisin Tray Recycling prôgram, MVD reali¿es the importance of servicingwineries. MVD is making plans to service local wineries by providing recycling services and educationaloutreach programs to address their specific needs. Technìcal assistance to wineries will include trainingon proper treatment of their agricultural waste.

Cíty of Fresno: Residentlal Solid Waste, Recyclable Materials and Organic Materials Services - Bid File S9211

Sect¡on 2 - Technicál Proposal for Collection Serv¡ces

Technical Proposal for Collection Services

2.8 Public Education end Outreach Plan

The objective of this section is to:â. Convey MVD's competency in developing and managing public education programs;b. Relay íts proposed plan for outreach during the transition period and beyond; andc. lllustrate the Company's willingness to become involved in the community. A drafl Public Educàtîon

Pløntoserve as the basis forthe final plan for contract year one is Íncluded in this section, Thís plancan be quickly updated to incorporate City preferences immediately after contract award.

MVD owners have been collecting solid waste and recyclable materials for decades; during this timeoutreach efforts have had to flex with industry changes to ensure proper communicatlon of them tocustomers, This resulting communications experience will positively affect a smooth transition betweencontractors for MVD customers.

MVD's approach to communicating with its customers is simple, creative, and effective. lt respects thefact people are inundated with too much information, All materials convey the reasons for cuttivatingnew, green behaviors in order to motivate customers, and also identify additional resources forcustomers who want to know more about environmental issues.

Although a consistent message repet¡tively delivered in an abbreviated, friendly way is most effective,once the desired behaviors are adopted by customers regular reinforcement is required to sustain them.Finally, emphasizing the difference an individual's recycling practices makes is helpful. MVD's publìceducation prograrir will continually remind customers of the importance of adhering to programguidelines and will report their progress and associated positive environmental impacts back to them.

This program incorporates a strong community relations element, which is detailed later in this section,Responsibility for commun¡ty ¡nterface will be spread âmongst the Company' middle and topmanagement, assuring that pledges of human and financial resources to the community's benefit aremade and kept. MVD believes that its track record in Fresno ¡n relation to the commercial collectioncontract is evidence of this. Also, letters of support including those from various Fresno Chambers ofCommerce are'included up front w¡th the cover letter.

Because school-age children are Fresno's future, the Company also proposes an interactive educationalcomponent for schools that is age-appropriate, engaging, and designed to reinforce good recycling

behavior.

Excellent coordination between MVD and the City will contribute greatly toward program success. To

facilitate communication, MVD will respectfully and actively part¡cipate in coordination meetings w¡ththe City during the ramp up period and throughout the term of Lhe Agreement.

City of Fresno: Residentíal Solid waste, Recyclable Materials and Organic Materials Services - Bid File #9211.

Section 2 - Technical Proposal for Collection Services

several other jurisdictions where it is required as part of periodic reporting,

Staffing

The biography of lvette Rodriguez Public Relations Manager, is included in Secfion 1. lvette is

responsible for general oversight of the entire program and the following specific public education

activities:

/ Mun¡cipaland media relationst Development and distribution of effective promotional and educational collateral materials,

including all electronic components¿ Development and delivery of presentations to business and civic groups/ Coordination of coverage of community activities¿ Development and delivery of interactive school assemblies, classroom visits, and school group

âct¡v¡ties{ Collaboration with all MVD Public Education.Specialists for development and distr¡bution of

effective collateral materials, including electronic components¿ Update of website and all e-activities.

MVD has a serious comm¡tment to gaining the maximum residential reryclable and organic materialscollection program participation and diversion, as it does in all of its communities. There is'a directcorrelation between MVD's robust outreach program and diversion results, as indicated through theexperience examples shared tn Section 7.

For thls program, MVD will add one additional.public education specialists per D¡strict dedicated toFresno.

Government, Community, and Media Relations

The Public Education Manager is responsible for government relations. As liaison, she will represent theCompany to the City. ln that capacity she will attend the following meetings and engage in the followingah¡vities:. Attend City Council, City staff, and City strategy development meetings.o Coordinate with the City to integrate municipal and contractor activîties, as appropriate.¡ Make requisite presentations and proposals.

r Function as a point of contact for contract compliance matters.ln the area of community relations, the Public Education Manager will be responsible for:¡ Continue to represent MVD in community activities, such as Farnily Day, Party w¡th Planet at the

Zoo, and manv more.

VD willtra.ck all public education and community relations efforts meticulously and quantify results in

accordance with the draft Franchise Agreement The Company has considerable experience doing this in

Jt,lr

City of Fresno: Res¡dent¡el Sol¡d Wäste, Recyclable Materials and Organíc Mater¡als Services - 8id File f9211

Section 2 - Technical Proposal for Collection Services

Continue to support local community service organizations, such as Ted C. Wills Community Center,Food Bank, Community and Neighborhood Centers, and Fresno Barrious Unidos,

. Ensure míd- and top-t¡er managers are involved in community relations activities.

ln her role as media relations interface, the Public Education Manager will:

¡ Proactively develop rapport with the all local media outlets: W, radio, and print.o Track media coverage of the Company, industry, and environmental issues and developments in

general,

Although the Public Education Menager is responsible for the above tasks, she will engege her publiceducation specialists and other MVD employees to participate in certain activities as may be warrantedor appropriate. For example, in monitoring contracf compliance she may bring in the operationsmanager for discussions on matters relating to driver mänagement for quick resolution. A team effort isemployed to ensure MVD programs are effective. The Public Education Manager meets with OutreachSpecialists weekly to discuss progress and new strategies and projects which will enhance currentrecyclìng programs in order to increase diversion. Frequent ¡ntercommunication between the PublicEducation Mânager, Outreach Specialists, Route Manâgers, Customer Service Representatives, ändDrivers ensures buy-in between all MVD employees with influence over customer satisfaction and

behavior, and that programs are successful due to a consistent approach.

Public Education Plan

This draft Public Educo¡ion Plon first addresses items that apply to all programs. Once lhe Agreement is

finalized, MVD's first order of business with the City is to begin meeting regularly to coordinate allstart-up activ¡ti€s, including these.

¡ Develop, produce and distribute, in close collaboration with the City, all public education materialslisted in the proceeding plan. Each piece will be carefully considered in order to determine how theinformation is best conveyed to non-€nglish speaking individuals. All materials will be translated intoSpanish and Hmong. Materials will also factor in the cultural context as appropriate.

e Design and place print ads and posters and distribute press releases that correspond to programmilestones as determined to be a wise program complement.

r Hold workshops to correspond to program milestones -or as otherwise needed in order to be

accessible to custo mers.ö Update and maintain a user-friendly website thät is both an effective custorner service tool and that

also organizes the communìty and helps move it toward its sustainabilíty objectives.

The draft plan on the following page is provided as a start¡ng point for discussions with the City relativeto the Public Education component of the scope of work. Sample outreach materials are included inExhibit C.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File S9211

Sect¡on 2 - Technlcãl Proposal for collection Services

Public Educat¡on and Outreech I Residential Education and Outreach ProgramAll printed moteriols olso to be posted to the Compony's website ín Englísh, Sponìsh, ond Hmong.

Postcard Announcement

quãrterly newsletter

Annual lnformat¡on

Civ¡c/Communlty Group Outreach

Billíng lnserts

School Educat¡on Program

ÍART. UPlntroduces MVD as the new seN¡ce provider, provldes MvD contact ¡nformaÌìon,and reersures customers theV wlll recelve qualìty *ru¡ce dellvered through thesame core group of driverr. lnforos resldents âbout whatthey Ën expect next.Add¡tional CSRs will be tra¡ned and employed to handle increased phone ællvolume5, The website will be updated with a banner on the front page ind¡catlngwhere Fresno leådlng residents to additional lnformat¡onFully descr¡ber Fresno resident¡al collection proBrams and initiat¡ves, includlng theexpanded curbrlde recycling program, and clean-up Buidelìnes.

ONGOING

Quarterlv newsletteß w¡th relevant conlent.

A9 required bäsed on City preference or obseiled trends which need to becoffected.î i¿äË' ¿&iiu-iñsïväi íciîoi .-¿ì.åi¡óípilg,"' ffiãiiia ÉiG;¿]iiãti

Distrlct Super¡ntendenl for approval of the program-.

All residents; approximätely one month prlor10 the ope¡at¡onr stan date.

Àl residents; approxlmately ten days prlor tothe operatlons start date.

All resldents; quarterV.

All residents; as needed.

Upd¿ted progràm informalion such âs changes to serv¡ces, and hol¡dây collection All resldenls; annuallycaþndar, Wlll also feature a refreshed theme fur the upcomrng year

MVo w¡ll contlnue to build rapportw¡th stakeholders ¡n the commun¡ty. Public All communlly groups.

Êducât¡on Mana8er will make herself and her slaff avaìlable to give presentât¡ons.

Please see examples ofoutreach materials and reports featured in ExhlbÌt C.

City of Fresno; Residenti¿l 5olìd Waste, Recyclable Materlôls ãnd Organic Materials Servlces - B¡d F¡le #9211

tllI

Sect¡on 2 - Technical Proposal for Collection Services

Enhanced Community lnvolvement

Conimunity invoJvement also consists of recycling presentations and attending community events.

Recycling Presentations

Presentations are scheduled with multi-family complexes, clubs, non-profit organizations, church groups

and other community organizations. Presentations are very interactive and informational. Residents areable to see the impact they make when they recycle and when they don't as well, The muhi-familyeducation program an evening program held in a common commun¡ty area for families to gather,providing dinner or snack and a presentât¡on regarding the recycling program at their complex.

Material Recovery Facility Tours

Educational tours of MVD's material rêcovery facility provide thepublic with an up-close look at the recycling process. MVD has an

education room above its facility that allows students and adults

tak¡ng the tour to see reryclable materials being processed through-the facility's state-of-the-art sortlines. Tours also include reuse aftprojects and a picnic area for schoolfield trips.

Community Events

Residents are also targeted through community events. A booth is set up to discuss our recyclingprogram information and provide giveaways. Our interactive prize wheel attracts people of all ages.

They spin the wheel, answer a simple but meaningful question, and get a small prize for partic.ipating.

Each person that comes by our booth is reminded about all the different materials that can be recycledand informed on how to properly dispose of household hazardous waste, electronics, white goods,

sharps and anything else they are concerned about. The following brochures are made availabte to thepopulations during these events: Household Hazardous waste, Sharps, Recycling Oil, Kids Recycle,

Residential Recycling Program Brochure, School Program Brochure, and Commercial Recycling Brochure.MVD tailors each event display to the target audience. New concepts and tools are also implementedeach year to keep MVD's audience engaged with our environmental awareness rnessage.

Materials Used

MVD uses a combination of a presentation board showing the recycling process at its Material Recovery

Facility, giveaways, brochures, tangible examples associated with the recycling process and end product, -

and its prize wheel to educate attendees in a friendly and fun rnanner about the recycling opportunitiesMVD makes available to customers and recycling and resource conversation in general.

ln 2011 MVD reached nearly 7000 residents from eight d¡fferent communities through presentations

and community events,

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File fl9211

L18I

Section 2 - Technical Proposal for Collection Services

MVD's school education program is one of the Company's most important programs. MVD notices theincrease in recycling tonnage within the residential and schoolprograms when school aged children, school faculty, and staffreceives recycling education, MVD provides rerycling bins and

educational materials to schooJs. Outreach Staff meet withcustodial and cafeteria staff to ensure recyclable material is

diverted from the waste stream.

At the start of each school year a letter is mailed to theSuperintendent of each school district, requesting approval ofMVD's education program. Once approved, the Outreach

Specialist informs the principal and teachers about our schoolrecycling program and presentetions by mail, e-mail, flyers,posters or a short presentation during a staff meeting. Once theinformation has been distributed, teachers begin requestingassemblies and classroom presentations during the school year.

"[MVD's] dedicoted opprooch wîth ourschoo/s is one exonple of theirinvolvement ¡n our community ond theircív ic le o dersh i p. MVD's proo ctive,ed u cotio no I recyclin g p rogro ms o reevident throughaut our communityrequíring very little City t¡me tood mì niste r....MVD's exce pti ono I re cycl i ngstoff prolvide oil the on-ground outreochond follow-up."

Ron Monfredi,Kermon City Monoger

MVD recycling presentations range from 15 to 45 minutes and 'are suitable .for each grade level.Common presentat¡on topics include: definition of recycling, reesons to rerycle, the landfill, recyclableproducts, common mistaken non-recyclables, the recycling process, the 3 R's (Reduce, Reuse, Recycle)

and classifìcation games. Presentations are very interactive and also include recycling games such as

Jeopardy and Bingo for prizes. Prizes made out of recycled materials are given to all students dependingon the size of the group.

Outreach specialists also attend events held within MVD schools, for instance: Earth day, Career Day,

and Food Fairs. Special programs include:

Phonebook Challenge '.

The Phonebook Recycling Challenge is a.project sponsored by AT&T RealYellow Pages, in cooperdtionwith Fresno County, and MVD. The contest provides schools an opportunity to collect outdated phonebooks for recycling and to compete for cash prizes. Outreach Specialists kick off the challenge by

conducting an assembly to rally students to collect and recycle the most phonebooks. During theChallenge MVD tracks and monitors the amount of phone books collected at each school site. At the endof the challenge an assembly is g¡ven'to the winners of the competition presenting results and prizes.

Hundreds ofphonebooks are recycled from each school during the challenge.

Earth Day PresentationsDuring the month of April, MVD's Education Department plans differentprojects arid events to promote Earth Day. Our last project included a treeplant¡ng ceremony with a presentation and an assembly providing studentswith the brief history of Earth Day. Other events inclu{e free E-waste events,art contests, community cleanup days, and tree planting in the comrnunity.

City of Fresno: Residential Solid Waste, Recyclable Mâterials and Organic Materials Services :' Bid File #9211

Sectlon 2 -Technical Proposal for Collection Services

State-W¡de Recycling Challenges ParticipationMVD provides schools with infoirnation regarding state recycling competitions like the California K-12School Recycling Challenge (Recycle-Bowl), sponsored by Keep California Beautiful. This year we assistedKerman Floyd Elementary participate in the 2011 KAB Recycle Bowl with a kick off assembly and trackthe amount of recyclables collected during the competition.

Stat¡st¡csThis year MVD reached a total of over 10,000 students through classroom presentations, schoolassemblies, and school events. Media used in schools presentations include: PowerPoint, posters,tangible examples, and presentation boards

City of Fresno; ResÎdential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File #9211

Section 2 -Technical Proposal for Collection Services

2 Technical Proposalfor Collection Services

2.9 Subcoritractors

MVD will not use subcontractors for implementat¡on or maintenance of this contract.

L21,I

Cíty of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - 8id File fl9211

Section 2 - Technical Proposal for Collection Services

AppendixCol lection Operations Standards

Driver/Employee Training

MVD only employs qualifìed personnel to perform collection services. ln order to del¡ver superiorperformance, drivers are properly trained. Properly trained drivers increase the likelihood that servicesare performed correctly the first time, and that accídents and íncidents will be avoided. The objective ofthis section is to provide the City with MVD's approach to recruiting/developing the optimal workforce.

MVD assigns the highest priority to workptace safety, as evidenced by the current safety program ìnplace for operations personnel.

Workplace Hazards Evaluation and Facility lnspections

MVD conducts thorough wbrkplace hazards evaluations of all collection operations job classifications,maintenance shop job classifications, and general office workers, as well as for all physical areas of itsfacility. For example, hazards will be identified by job task, and a specific training measure identified toprevent incidents and accidents that may occur as a result of that hazard. Those specific trainingcomponents are incorporated into the required training program for that pos¡t¡on. MVD conductsmonthly site inspections of its facilities. Potential hazards are noted and corrected immediately. MVD's

commitment to safety and cleanliness is evidenced through the recent OTOC inspection reportbeginning on the following page. The chart below compares MVD's inspçction results with other area

solid waste facilities. MVD's workplace environment is also ADA compliant.

Inspectioñs Datã (Pâst 5 Years)

so

to

30

50

40

:0

20

t0

0M¡l v.nÈT Crlpôrðl .latfarr

¡Ar..rotCoÈrrn ¡\rlohikhr lì¿i.lìiÍtfg

c,!ñts

City of f resno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File #9211

e

Section 2 - Technical Proposal for Colleaion Services

\y'-t:w>F

Department of Toxic Substances Control

oeborah O' RaPhael' Okootor1515 follbol¡se Roed

clovls, Ca¡ilorñlâ 0361 1

Eûmndê. Btoçn-h'Gôramor

o*lreDepartmentofToxicSubstancesControl(DTSc},CaliforniaEnv¡rãfiñãñËiFrote6tion ¡gency, conducted'an inspeclion at:

Facillty ¡l^nø:

FacirityAddrcss: /5'3QO t'n. l¿¡S¿¡l t+vu

ßtßmap t fy. ,

Check bgx below as aoqnqriail@acompleteinspectionfepoftw¡thin65daysofthedateof

this inspecflon.

As a at'ons of hazardous waste laws' reguìalions'

and DTSC greatly appreciates the efforts you have

mad waste laurs and regulations'

As a resutt of this inspeclion, no violations of hazardous

and requirements were discovered. However, DTSC is

¡nro*aìion. Vjolations may be found afrer the site visit, d

ln the Violation seclion of the inspection reporl,

As a result of (s) listed in Section lv require additional

investigaiion. nresolved lssues in the lnspection report.

Violaliõns ma visit, and these wí|l be identifíed in ths

Violalion sectlon of the inspeclion report

EPA lD Number:

Dfsc fAuGUfi â, 20lll

tr

tr

Gounty:

6 Prînild or Rocydêd P?ptroase t aL

Name -T

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File fl9211

Section 2 - Technical Proposal for Collection Services

Department of Toxic Substances Control

FacurÇ n'^", tWìo'ú*tbe:ÞYose( . o"*, ?/,î/ze,^SECTIO]I¡ IV: OTHER ISSUES/CONCERNS

The following issues/concemf¡ wer€ identified durfng thls inspedion. Furlher rcsearch mayidentÌfy additional violatlons. Any new viohtions, with ihe required conEctive ac'tion andcomplìance sdredule, will be identified to you in ú'lritten correspondence,

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SUMMARY OF VIOLATIONS

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City of Fresno: Residential Solid Waste, Recyclable Materíals and Organic Mater¡als Services - Bid File fl92r1

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Fadlity Narner

Section 2 - Technical Proposal for Collection Services

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City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid Fìle fl9211

Section 2 - Technical Proposal for Collection Services

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Cíty of Fresnol Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File f9211

126I

2 - Technical Proposal for Collection Services

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Sect¡on 2 -Technical Proposal for Collection Services

Employee Or¡entatlon

New employees will be required to review the following documents, which currently include: the

Company's Employee Hondbook, Driver Hondbaok (referenced above), and lniury and lllness Prevention

Program lllPP).

r' Driver HandbookThis manual is comprehensive, covering all components of the Company's safety orientation, to

emergency procedures, accident/loss reporting procedures, and so forth. lt is the Cornpany's

observation that when employees are fully informed about the high safety standards of the

Company from the first day on the job, a strong effort is made by new employees to match theirperformance to those high standards.

¡ lnjurV and lllness Prevention Program (llPP)

As required by law, the Company has an ltPP. lt is well organized, thorough, and OSHA compliant.

The plan identifies hazards, as previously described. and identifies the various elements of.the

Company's overall safety program, such as safety practices, safety training, record keeping and so

forth.

Monitoring of Work Performance

During the first few days of being on the job with MVD, driver work habits are assessed by the

supervisor to ensure good safety habits are strictly followed. Supervisors proactively address any

problems observed, reminding the employee of what was learned in training. Safe work practices are

cont¡nually monitored and addressed each time an iniident or accident occurs.

Safety Meet¡ngs

Safety meetings are held once per month and are compliant with all safety regulations, OSHA topics are

discussed in rotating order, and meetings are customized in that incidents-and how they could have

been prevented-from the prior rnonth are reviewed in an open, interactiveformat,

MVD is an active member of the California Refuse and Rerycling Council which provides tremendous

safety-related support and resources, The list at the conclusion represents the DVD lending lìbrary thatMVD frequently accesses to address particular concerns'

This list is followed by a second, Sofety Mondoytopics which MVD taps on a regular bas¡i for lts weekly

tool box talks.

C¡ty of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File #9211

Section 2 - Technical Proposal for Collection Services

Accident and lncident Management

MVD dispatches a supervisor to the scene immediately when an accident or incident occurs. A report ¡s

completed by both supervisor and employee. The day folloWing the incident, the employee receives the

appropriate retraining. First, a pretest on the incident type is used to assess the employee's knowledge

of safe practices specific to the task being performed when the incident occurred. Proper procedure is

reviewed. A post-test is then taken to check the employees understanding of safe practices that must be

utilized in the execution of the task in question. The employee must pass the test with a score of 80

percent or better, or the entire process ¡s repeeted.

Required Postings and Signage

MVD maintains its employee bulletin board with all postings as is required together by law. MVD

maintains this bulletln board regularlyto ensure allsuch materials are neatly posted and easily readable.

This is part of MVD's monthly site inspections, described above.

CRRC Safety DVD Liþrary

General

Commercial Operations Solid Waste Training [English]LockoutÆagout Training for Employees [English]

Lockout/tagb ut Tra ini ng for Employees [Spa n ish ]

Pre-trip lnspection, Solid Waste Training [English]

Pre-trip lnspection, Solid Waste Training [Spanish]Residential Operations Solid Waste Training [Spanishl

Workplace Harassmedt in lndustrial Facilities [English]

Workplace Harassment in lndustrial Facilities [Spanishl

SafeÇ

The 5 Keys to Safe Driving lEnglish]The 5 Keys to Safe Driving [Spanish]What's Your Excuse? (Justîfying unsafe acts can have tragic consequences) [Engl¡sh]

What's Your Excuse? (Justifuing unsafe acts can have tragic consequénces) [spanish]

Hazards in the Waste Stream: Bloodborne Pathogens

Disabled Vehicle, Accident Procedures, and Truck Fires

Conveyor Safety in the Workplace lEnglishl

Conveyor Safety in the Workplace [Spanish]Backing Accident Prevention IEnglish]

ll¡l¡ru'ìilllfilllill$lltllt.[H|¡illf/flUllllHilIflt¡'fIllülfl[1illtlfllllúuffIlIf,tillfilt'H¡r.lflWlruCity of Fresno; Residential Solid Waste, Recyclable Materials and Organic Materíals Services - Bid File S9211

133

-

Section 2 - fechnical Proposal for Collection Services

Backing Accident Prevention [SpanishJ

Backing Accident Prevention, Solid Waste Training [English]

Backing Accident Prevention, Solid Waste Training [Spanishl

Distracted Driving At What Cost IEnglishl

Distracted Driving At What Cost [Spanishl

Front End Loader Safety and Operations [Enel¡shl

Front End Loader Safety and Operations [Spanish]

Slow Down to Get Around, Preventing Struck By Accidents lnvolving Solid Waste Collection Employees

lEnelishlHazard Communications IEnglishlHigh-lmpact Forklift Safety IEnglish]Route Safety Analysis lEnclish]Safety Orientation IEnglish]

Safety Monday Topics

e July 23,2072 - Alleys (PDF)

. July L6,2012 - MRF Safety (PDF)

. July 9,20L2 - LandfìllSafety Concerns (PDF)

. July 2,20t2 - lnteresting Patterns in Accident Data (PDF)

e June 25,2072: Here Comes OSHA (PDF)

r June t8,2012 - June is NationalSafety Month {PDF}o June 11, 2012 - School is Out (PDF)

r June 4,aotz - Spring Fatal¡ties (PDF)

. May 28,2OL2 - CVSA Roadcheck 2012 (PDF)

. May 21,2012 - Runaway Trucks (PDF)

. May t4,2OL2 - Falling Off the Ríding Step (PDF)

. May 7,2012 -.OSHA Enforcement Update (PDF)

¡ April 30,2Ol,2- Rollovers (PDF)

. April 23,2012- Watch out for Eikes & Motorrycles (PDF)

r April 16,2OL2 - Driver of the Year {PDF). Apr¡l 9,ZOL? - Getting ln and out of the cab (PDF)

. April 2,2012 - WasteExpo 2012 - Safety Sessìons (PDt)

r March 26,20L2 - OSHA-RecyclinC (PDF)

. March t9,20i2- lntersections-Safety lssues (PDF)

r March L2,2OL2 - Backing (PDF)

o March 5,2072 - March Madness (PDF)

r February 27,2OI2 - First Waste Collection Fatality of 2012 {PDF)o February 13,2Ot2 - Lessons from ltaly (PDF)

o February 6,2072 - Reasonsto Be Safe (PDF)

r Januarv 30,2OL2 - Super Bowl XLVI - Are you and your workers ready? (PDF)

City of Fresno: Residential 5olid Waste Recyclable Materials and Organic Meterials Services - Bid File å9211

134

-

Sect¡on'2 - Technical Proposal for Collection Services

. January 23,2012 - Dealing with Good and Bad Behaviors (PDF)

. January t6,2AL2 - Strong lnsurance Company Helps Safety (PDF)

¡ January 9,2012 - Overhead Hazards {PDF). January 2,ZO1-2 - How Will You Commit to Safety in 2012? (PDF)

Routing Approach

Because truck emissions, traffic, and wear and tear to streets impacts the environment and the general

public's health and safety, as well as the environment routing is especially ¡mpoftant. Proper routing is a

time-consuming and thoughtful planning process that MVD takes seriously. There are two components

to routing: mapping and data confirmation, and route balancing. Analyzing initial account data and

balancing routes require human focus and decision-making. Routing through MVD's software

application, Encore, is accomplished by assigning longitude and latitude coordinates to each service

address.

Mapping and Data Checking

Encore util¡zes Microsoft Map Polnt software to generate routes which ensure they are as efficient as

possible. A route manager assigns route stop sequencìng based on seruice metrics such as:

r Number of service units per route;o Number of solid waste carts set out per route (participation);

r Container size/corresponding servicè address;

e Cubic yards.

¡l,lllülll|llHllilHilfllf,[tllfitllt&ütllruillfllliffilt {ltilllfilll$lrwHm$reïrffitttrrllttr!il1City of Fresno: Residential Solid Waste, Recvclable Materials and Organic Materíals Services - Bid Êile f9211

135I

Section 2 -Tèchnical Proposal for Collection Services

Balancing and Final Routing

A route supervisor will drive routes and document travel paths within them. Routes will be timed based

on productiv¡ty estimâtes provided by the truck and automated arm manufacturers. To increase safetyand efficiencl, managers will specify right hand turns in as many cases as possible. Special notice and

treâtment will be Biven to areas where children are frequently present: schools, playgrounds, parks,

community centers, and libraries, Depending on the location of these facilities, the Company will either

route collection vehicles in a way that collection âcfivit¡es are completed in those areas prior to each

school's start tlme, ór during hours when children are in class. ln the end, routes will be balanced toensure that tons collected are equalized, and that when all productivity assumptions and driver activities

are factored in hours worked aie equalized between drivers to the greatest possible extent.

Commercia/MFD route balancing is more complex because service frequencies may occur more than

once a week and because of business managers' preferences. To achieve route balance for its new

commercial customers, lifts per day are grouped by geographic area. To achieve better balance and

greater efficiency, commercial customers may be encouraged to subscribe to a larger container serviced

fewer times per week or to shift service days. Service levels will always be right-sized and geared towardachieving a 75 percent diversion rate.

Routes will then be mapped and reviewed with the City for City approval. lf drivers employed by the City

are interested in working in familiar territory, MVD will rnake every effort to grant their requests. During

the implementat¡on of tresno's commercial contract MVD offered pos¡tions to 31 City employees, hired

25 of them {includin6 four support staff), and 19 (including three support staff} are still employed withthe company. Employing displaced workers makes the transition easier for both the drivers and those

customers who notice and greet their drivers regularly

The sheet on the following page is used by MVD drivers to record route specifics and exceptions.

City of Fresno: Residential Solid Waste, Recyclable Mater¡als and Organic Materials Services - Bid File #9211

Section 2 - Technical Proposal fo¡ Collection Services

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City of Fresno: Resldential Solid Waste. Recyclable Materials and OrBanic Materials Services - Bid File fl9211

Section 2 - Technical Proposal for Collection Services

This page left blank intentionally.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organíc Materials Services - B¡d F¡le #92lf

3 Proposed Service Enhqncemenfs ond lnnovolions

MVD will provide the following enhancements for the same low rates,/cost proposed in Section 4 - Rate

ond Cost Proposø|.

Mulli- Fomily Commerciql Rote Adjustmenl

Under the current Commercial Franchise Agreement between the City of Fresno and MVO, automated

cart services for multi-family structures with more than four ui ¡ts are included as part of the commêrcial

rate schedule. Because commercial routes are predominately frontload bin service, servicing automated

carts requires additional routes and equipment which adds additional àosts to the operation. These

costs are passed on to the multi-family customers as part of the current commercial rate structure.

lf MVD were awarded the Residential Franchise Agreement for service area 2, MVD will gain operational

efficiencies in servicing these customers. MVD therefore proposesto reduce rates for multi-family

complexes with 10 or more units to the 96 gallon residential rate schedule for cart service. Based on our

estimâtes, this reduction would affect over 1,400 customerswith the projected savings to these

customers estimated to be over S175,000 annually.

Curbside lexlile Colleclion ond ßecycling

Beginning on the operations start date, MVD will provide Fresno residents en opportun¡ty toconveniently recycle their unwanted clothing. Residents can participate in the on'call textile curbside

recycling program through the Company website: wwr¡/-midvallqvdisposal.com Once the resident

requests the service, MVD will deliver a clear plastic bag imprinted with instructions to recycle clean, dry

clothing. Residents will simply place the bag or bags of clothing at the èurb on their next scheduled

collection day,

¡n addit¡oh, beginning in contract year two, MVD will begin a curbside textile recycling pilot program.

MVD, in collaboration with the City, will select certain residential routes of approximately 5,000

residential customers to participate in this eight month program. The special bags will be delivered to all

homes participâting in the pilot program. Residents will place their textile recycling bag next to tecycling

cart at the curb on their regularly scheduled collection day. Drivers will collect all textile recycling bags.

MVD will partner with the local textile recycling company Ihê SOEX Group, The SOEX Group's core

business and mission is Re-Weat Re-Use, and Re-Cycle. The SOEX Group will recycle textiles collected

turn¡ng them into raw material fibers that are then used to make new industrial products'

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File d9211

139

-

Section 3 - Proposed Service Enhancements and lnnovations

Curbside E-Wosle Colleciion

'MVD will collect electronics at the curb at no additional cost. Large unbroken electronic items may be

placed at the curb and small electronic items must be placed inside a plastic bag. Residents must contacfMVD 24 hours in advance to schedule e-waste collection. A work order will be generated that driverswill sign off on and turn in to verify collection.

MVD has been a certified e-waste collector by CalRecycle for six years. MVD stays compliant withCalRecycle and the Department of Toxic Substance regulations and has had no citations or penalties

since becoming certified. MVDpartners with State cen¡f¡ed recycler E-Recycling of California, located in

Hayward. Electronics collected by MVDare hauled to E-Recycling of California for safe and proper

recycling.

Sponsorship of Recycled Ad

MVD has enjoyed the partnerships it has created with schools through sponsorship of calendar and

grocery bag art projects. These projects have incentivized students to display their talents and promoteconservation and recycling simultaneously. Partnering with organizations such as tresno Art Hop,

Creative Fresno, and Fresno Community College Art classes, MVD will create an environmental

awareness on a different level and creàtive mindset.

Poyment Drop Box

MVD will provide a locking drop box at the City's Utilit¡es Billing and Collection Division located on thefirst floor of City Hall, as well as at the Mànchester office as a convenience to customers. MVD will check

and remove the contents of lock boxes once per week, MVD will also include comment cards at each

location so that residents and business owners/managers can submìt suggestions for seruice

improvements to MVD. MVD willshare this information with the Cìty.

City of Fresno: Residential Solid Waste, Recyclable Materiels and Organic Materials Services - Bid File #92f 1

Sect¡on 3 - Proposed Service Enhancements and lnnovations

Community lnvolvement ond Sponsorships

MVD supports multiple community events and organizations through sponsorships and enjoys being an

active corporete c¡tizen,of Fresno and all of the communit¡es MVD serves. MVD currently underwritesthe following events and organizations:

Central California Hispanic Cham berCentrol Colifornio Business Expo

Notionol Porks Doy Event

Annuol Lotinø Women's Conferenèe Trode Foìr snd Fashion Show

Fresno Metiopolitan Black ChamberU rbo n Leode rship Co nfe re nce

Freedom Fund Educøtionol Luncheon

Califo rnia Apartment AssociationMork of DistínctionCAA ReverseTradeshow

Fresno Police Department 6old Tournament

Crime Stoppers Gold Tournament and Event

. City of Fresno Christmas Parade

ln addition to continued sponsorship of the above, MVD will commit $15,000 annually to sponsor local

non-profits and commun¡ty groups serving Fresno residents, such as the Community Food Bank,

Poverello House, and Dickey Youth Center. Mid Valley Disposalwill also partner with community parks

such as Holmes and Romain to promote recycling and coordinate ¡nteract¡ve, fun educational âctivit¡es

for the neighborhood children to enjoy.

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City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File #9211

' *- r...f

Section 3 - Proposed Service Enhancements and lnnovations

This page left blank intentionally.

City of Fresnor Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File fl9211

L42

-

5 Exceplions to Agreemenl

MVD has carefully reviewed the RFP, all Addendo, ând the dratl Agreement and takes no exceptions.Based on MVD and City of Fresno experience on the commercial franchise, however,.MVD is makingsome minor language change suggestions. These minor suggested changes are located on the flash drivesubmitted with this Proposol- ln no way are these suggestions to be construed as exceptions.

City of Fresno: Residential Solid waste, Recyclable Materials and Organic Materials Services - Bid File #9211

Section 5 - Exceptions to the Agreement

This page left blank intèntionally.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File 192f 1

1 Rates

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lllr554

Addn¡on¡l OBn¡h Corln¡¡!õ

96cnl lft 020 t l8t 917 lt.9! fo 26 tù51 5!19 S.rq (0.e/,\ 5____________I$z

Áddllhü.1 R.q.ll.! Cô!þiû!ô

96C^l l/*k 019 S lt{ I4 ¡Llri $¿r ¡!l! ¡llaCôtrt.1¡!r E!còã¡g!

^rysiæ Ur¡d 2g 5l9ù

64 Ocl Nd J66 I 70Zz

96Gól Nq 40? I 17t7

a¿¡s :lÉL lJr¡r ut lh s ,

¡!ré ¡fl,Âr ut-tø'r

fe sç tGLsI u,i%)

r4!-[z

tllúl

rornr ^ôõ!¡r

tur. Rr.r*t:-ffijTohl ProÞoEd Àn.o.l C¡r (roril !)l S ¡t.¡.r,r?6 I

to.!,ortr.,*ur-

N.È: Rqcl¡ll. ñddioh rdrrf.4 ùú!poû, ¡d dirpod ¡t stùhd to b. ¡0/b¡ for th t.m of tlE 6ñrd, ürh nll d 9ræcd! fiom rq.lôblc hildidr dåælduc bcinsovìdcdlhMglthÊ Rqclibl. ifdriols tåyñcil lo tlE C¡y.

Pãgr t ot I

2 Gen_lnfo

bpmer Namc: ¡\llú vtllcy D¡tpotnlSqrircrl¡ÉNr I

SaiÉAr6 No :sE

Sol¡d l¡'ß¡c Cod Scni.6 failclr ÞuEh&d fmm.lV.

R.ct(Ì¡bL M¡l.rirl C¡rt Smift! '.[Ek¡ pEr¡lìrrctl lM altt,

Or!.6¡. MraÊrlnlt Crñ S.ñi.6 '.1¡kLr lúd¡*tt IFE al b .

Crñs ;.ßFÈE EFrlffrñ.¡tt,

l. R6clåhlr Èl¡tùial¡ Pmeine ãnd llnndli

Nlm of Pdñ¡n! S¡lr ú¡d ì'¡lhJ DtfE¡l RÊFllrE ¿ lnrtlÉ Stqtl!,n

Orú.r's N¡E p.lotl Pretd h!

ODdra/r NnE ilS Vsltl' DÈfi'r¡l

AddË of PFGinE S¡1. SStìrqnÁrr,Xcffiq gfI

P.r lôD lpp¡n¡ Fè (n h¡t.)(lmludingTmtcr uil TrúÐor 6!) fE)

ll.olitr! lU.tlod(c g dirxt hrul, rrmsfer hrul)

)¡Ë h¡d

^ddErt ôlTnnrftr ldnt¡on

(if Uplb¡blê)

). O¡¡¡nic ñl¡tel¡l¡ Prmæ¡inr ¡nd lI¡ndl

Nrm cf Pñlitr8 Sl. ìm 9ilþ Rqrlin¡

Oiì.r't Nm (EharE¡r ConÐû¡rlnË

OÊaÉto/t ñ-¡m (*Þrt¡n 6nqGlIq¡

Àddnrr olPusir¡ Sitt Jls EñodÈ Arc. Fñß C^ 93?*

Pd lotr ïDtin! Féflncluding T.ssfcr lrd Tru9pffi colts)

11,7-{

ll¡ulin! Àl.lùûd(ag, dirccl h¡ul, lm'fr h!ul)

liñrhd

Addffi ofTñr!L. la.¡t¡onlif¡pplic¡bhl

i. Srorprl Fhriliti

Addd of Collc.l¡m'ì..h¡.L Púhing, ihlot.mnc.lì'Ish¡t!, cla.

!4+.1lV ìl'hh.shtrtr ^ra.

fEm. C^ u?6

AddÊsr rf ,ldñ¡rl!rñrìÉ Om..' 15¡00 lV Jdr.n Are. N. '1u, Câ , ¡610, 3lJJ \l llì¡tci hr¡dsß

^

I ., FEi q C^ u?tlf

¡lrldË of ù¡ÍlH! Offe I fllxl lY Jan*n .4 r a. KFmt D. CA tJ IJO

¡. Addrr!! of CultornFS.N¡c. Om.. -.ltlt $' JdrF ^r

., K.rm[ CA 916J0, f] ¡¡ tl ìVnhéñg. ^r.,

f m û C¿l 9J70r¡

Páda I of I

3 Op_Statistics

$r.., nrte: Illid valley Disposal

SsrvicÆ Area No. I

Scruiæ A¡ea No. 2EE

Csrl Bulkv

TOTALSolidWæteRecyclablcMatc¡ials

OrganicMatcrials

Op€rationClcan-Un

I Account lnformat¡on# of weekly ¡ccounls/coslomcls II2t32 112393 I I 1607 2804 338,936

Labor Information2 # o[regulor route pcrsonncl

3 Laborhours/doy/person

4 Totâl låbor hoù¡ì/veal

24

92557.720.0

l89.2s

43-290.0

l69.?5

40.560.0

l69.00

17.440.0

14.0

37.3

t4 I,570.0

Roule lnformation# ofroulcs pcr

5 Vr'eckda¡

6 Saturda¡

7 Sunda¡

# ofemployecs pcr route pcr day pcr

E \r/eekda¡

I S¿turdsl

I0 Sunda¡

Ë of routc hours/day/route pcr

ll Weekdâ)

12 Saturda¡

l3 Sund¡r

# of routc hoursrleu per

l4t5

r6

l7lE f ofFTE routes

l9 # oflifllpulls pcr weÊk for all routcs

20 # ofliftdpulls pcryeâr for ûll routes

2l # of liflloulls ær route hour

Weekda¡

Saturd¡r

Sunda¡

Totû

22.00

1.00

6.00

34,320.00

0.00

0.00

34,320.00

16.50

1t2,132

s,830,664

169.90

l6 00

t00

600

24,9ó0.00

0.00

0.00

24,960.00

12.00

78,675

4,09r,r 00

r 63,91

14,00

t.00

4.50

16.380.00

0.00

0.00

| 6,3 80.00

?.88

55,804

2"90r,808

177 t6

6.00

3.00

6.00

9,360.00

0-00

0.00

9,360.00

4.50

2,r40

I r r.280

l 1.89

58.00

0.00

0.00

6.00

0.00

0.00

22.50

0.00

0-00

85.020.00

0.00

0.00

85,020.00

40.88

248,75 1.00

0.00

0-00

Tonnage I nformation (annual)

22 Solid sastc collccted

13 Ræyclable malerials olleclcd

l{ Orguric Materials collected

25 Total Coll€cted

26 Proccssíng rcsidue disposed

27 Net D¡vcrtcd lline 23+24J6)

t 00,454

I 00,454

0

33,343

33,343

J,001

28.342

82,94'.1

82,947

6,636

76.31 I

20,890

20,890

0

12t,344

31,343

82,947

237,634

I I,63?

r04.653

Page 1 of 1

4 Labor FTEs

Proposer Name: Mid Valley DisposalService Area No. I @Ser"¿ice Area No. 2 B

Rbute.Persohäèl(indlúTélcasüãl/p-ermanentÞõõl)-dõãõËËAF.IEI

Solid Waste Cart Service 24

Recyclablc Mâterials Cart Service l8

Organic Materials Cart Servrce l6Subtotn 58

OthEflPffiõIcEo/cooGeneral Manase¡

Controller

Office Manager

Operations Manager 2

Operations/Route Supervisor 4

Dispatcher 2

Container Distribution 4

Ooerations Clerk

Community Relations Manager

Recycline/Public Ed. Coordi nator 7

Customer Service Supervisor

Customcr Service ReDresentatives 6

Inside Sales

Billine and Collections Manaqer

Accountinc Clerk 4

Receptionist

Safety Manaeer

Maintenance SuDervisor 2

Shop Foreman

Yard Personnel

Maintenance Personnel 6

Recycling Manager

Ot rer:

Othcr:

Other:

Subtotal 32

Total 90

Page 1 of 1

5 Labor RatesBenefits

Service Area No. I El Servicc ÀreaNo. 2 EProposer Name:

äxUþÐ6J!iiì.A

Driver'Waees oer Hout $ t700Container Delivery 'Waqes

Der Hour $ 14,00Disoatcher Wases pe¡ Hour $ 16 00Supervisor Sala¡ry oer Year $ 45.760Ops Manager Salary per Year $ 62,400

ao

co

Driver Annual Bonus fS) $ r.000.00Suooort StaffAnnual Bonus l$) $ 500.00Salaried Bonus (o/o) 30/,

r.Et)Êq,/

40llk)Æension Contribution (% of Resular Waeesl 40Á.

Health & Welfare Benefits ($ per Emplovee/Yr.ì $ 400Uniforms ($ oer EmnloveeAlr.ì $ 260.00

oa

¿,l¿o

Overtime Prertiurn ù/o 50îÁDriver Hours per Day 95Suooort StaffHours oer Dav ICollection Davs oer Year 264Paid Time OffDays per Year r6

Note: Please attach a description ofyour employee health care plan benefits including levels ofcoverage for theemployee and dependent, employee-paid deductibles/oo-pays, out-oÊpocket maximums, and level of employeeresponsibility for payment of premiums for bofh the empJoyee and dependents.

Page 1 of 1

6 Capital

Proposer Name: Mid Valley DisposalSellice Area No. I þService Area No. 2 []

Collection VehiclcsOuantiw

Total Pronosed $Resular Spare Total

Side/Rear-Loader 5t I 7( 94,729,410

Other Vehicles Reuular Spare Total Total Proposed $

Transfer Vehicles

Pickup Trucl<s 26 2C s473,356

Container Distribution t0 I $r 60,630

Mobilc Service Truck

Containers Reeular Spare Total Total Proposed $

Carts ' 322662 1 1387 334045 $8.558.274

Other Total Proposed $

Shoo Equipment

Fuclinc Equioment

ComÞuter and Ofüce Equioment

Staft-up Capital

Total $13,921,670

Page 1 of1

7 Rev_Req

Preposcr Namc: luid vllley Dispos¡l

1Y

Paoe 1 ol 1

$r,414,6t2

$514,25{l

%Ð8Þ25

174,40

a17,ß4

91,76+746

sl6.474

gL9t9,9s2

gzr,820

$,.¡83,745

$o

9191,938

$0

g!

s3.675,6E3

59,0i¿il3{

$,060,959

$740m

c690,frt9

s321,æ8

w7,456

S615,1{10

s5.747

g3,47t6Lt

¡304112

s0

3Û

s174782

$0

ss

sv\742

Íit,95t,952

$1,006,696

fiÚ2nÍA44,516

947,9t3ó6¡ó8

51J53¡80

812&3

s3,556,í¡t

f309,47r

$0

f.¿05Lrß

5119318

s0

90

s1a72+t6

s6,w,641

978+lße

$10E^500

61n,418

s60,920

$86.342

w9,2ú53.{,18

sl,692427

¡147,168

26,7m

s0

s36,484

s0

$s

tóß,rE l

t¿tjÛ1n9

642e.n6

91,4040m

5¿01¿{98

ù53,948gt,a7,fffi

&4,rtL6ú

s38312

sïtó45roo

9r¡E6,600

9l,1r0/4,rs

s2,052131t

í52\,v22

90

¡9t6,6A5¡05

$2r"'rz806

s3,797,2æ

6127.41

53,v24,4fL

s2s,M2276

Lãbor-llela ted Cos ts

VÈhi.lÈRd¡led Cûstr

lu€lCosb

OtherCoslr

Diruct Depræ¡âlion

Tolat Alocated Cosb - I¡bor, Vèhiclê, FÉl & Othe.

Tohl Atlocrted Costs- DePl(chlion &Stut:Up

otal Annu¿l Cost of Opqations

Totûl Co6ts before C¡ty [ees'

Fnnchbc t¡cc

Conh¡Et Moniloring ild EnlorcemEñt Fee

Tot¡l Cibr Eees

8 Summary

Service Area No. I

Scrviæ,ArcaNo. 2

YEAR 1

$212r¡55$s52,878

$59,51ó

599ln$0

6294,848

$0g3%,LTt

s7?5,277

$281,870s93,762

v,266ß26

$25¿000$991"s00

$150,000

$10.500

tl,404.000

$¿0r2498

$0

$189,000$0

$523,9{8

$640,358

$643.638

s13,6s4jr,297,650

s147,359

$4,702'666

E]ElProposer N¡me: Mid Valley Disposal

SUMMARY (Iotal Costs from Forms 8A through 8D)

l¡bor-Related Costs (include regular & pool perrcnnel)Regular WagesOvertime Wages

Holiday WagesVacation WaçsSick teave WagesWorkers Conrpensation Insurarrce PremiurnsWorkers Conrpensation ClaimsHealth & WelfarePmsion/ Relirenrent BencfilsPayroll Tax*Other (Please List)

Total Labor Related.Cosls

Vehicle-Related Costs (do nol inctude depreciation)

Tires & TubesParts & Supplies (fluitl, oil, etc,)Taxes & LicmsesOther (Pleasc List)

Totel vehicle-Relåted costs

Fuel Cosls

OtherCostsLiâbil¡ty & Property Damagc lnzuranceEquipmc,nt Insu¡anceTraining & 9rfety ProgramsUnifonnsOÍher (Please List)

Totel Other Costs

Direct DeprcciallonConlainer DeprccialionRoute Vehicle DepreciationOthcr Depreciation

Total Direct Depreciation

Allocalcd Costs - Labor, Vehicle, Fuel & Other Costs

F¡on¡ Gencrnl and Adnrinistrativc (8QFrom Vchicle Maintenanco (8C)

, F¡onr Container Maintenance (8C)

Total r\llocated Costs - Labor, Vehicle, Fuel & Othcr Costs

Page 1 ot 2

I Summary

d Costs - Depreciation and Start-Up Costs

General and Administrative (8C)Vehicle Maintenance (8C)

Containe¡ lvlain tenance (8C)Total Allocated Costs - Deprctiation and Start-Up Costs

Total Annual Cost of Operations

IÌofit (% Operating Ratio; i.e., 95%):

Solid Waste Disposal

Recyclables Processing CostsOrganics Processing Costs

Total Net Proc€ssing Costs

lntercst Expense

Drect Lease Costs

Total Dircrt Leas€ Costs

Allocated Lease Costs

Total Allocated Lease Cosls

Total P¿ss-Through Costs

Total Co.st Befo¡e City Fees

Cily Fees

Agreenrent Fee

Franchise Monitoring and Enforcenìetlt Fe€

Total City Fecs

Total Proposed Annual Cost

Í@l$34-6s-1

lr:]I s 24.7s I

/ton

/ton/ton

$18234$0

9mp78s38,312

$13,645,900

$1.186,600

$4,110,.145

$¿05¿e3E

s2"052,938

lssj.,922

$o

$o$o

$6,68s,305

szt,st7,Eoí

s3,n7,2û. s727,277

s3,924,4T1

fi25,142,n6

s0

$o

$o

$0

Page 2 o¡ 2

m¡onl

From

EA Cart

Service Ârra No. I

SeNicc Area No 2EE

YEAR 1

Recyclable Organic

Solid Waste Matc¡i¡ls Materials Total

Labor-Relatcd Cosß

Regular Wages

Overtime Wages

HolidayWagesVacation Wages

Sick Leave Wages .

Workers Compensaticin lnsurance fìemiumsWorkers Compensation Claims

Health & Welfare

Pension/ Retirement Benefi ts

Payroll Taxes

Other (Please List)Total Labor Rclsted-Costs

Vehide-Related Costs (do not include depreciation)

Tires & Tubes

Parts & Supplies (fluid, oil, etc.)

Taxes & Licenses

Other (Please List) - Radio

Totrl \rehicle-Relnled Costs

Fuel

Othcr Cost¡r

Liabilig & Property Damage Insurance

Equipment Insurance

Training & Safety Programs

Unifornrs

Other (PleaseList) - Recycling Rebate

ï'olsl Olher.Cosls

Direct Depreciation

Container Depreciation' Route Vehicle Depreciation

Other Depreciation'l'ot¡l Dircct De¡ rccielion

Allocated Costs - Labor, Vehide, Fuel & Other Costs

Frorir General and Ad¡niniskative (8QFrom Vehicle Mainlenance (8C)

From Container Maintenance (8QTot¿l Àllocatcrl Cosls - Lrbor, Ychirlc, .Fr¡el & Othcr

s83 r,552 s621,664 $554,368 s2,0æ,584

$l 75,406 sr3r,555 $168,909 fi475.870

$20,448 $l 5,336 $¡3,ó32 #9,416s34,0E0 s25,560 s22,720 $8¿360

Í99,912 $74,949 $7r,5r 5 þ46396

$t t5,200 s86,400 $7ó,800 527EAO0

s/2,460 $3 1,845 $30,3E5 $104,690

$95.534 s7r.650 s68,367 $zE,5s1

s I ,4t 4,ó t2 $t,060.959 $r.m6.696 î1.482.267

$92100 %7,71n $s8,800 $2r8,400

$063,000 $26d,000 $231,000 $858,m0

s5t000 $40.000 $05,000 sl30,m0

$3,850 $¿800 $2,450 $9,rm$514,250 $740m ßn,80 s1,21i500

$698,525 $690.039 $444.516 St-833.080

$68,200 s49,600 s43,400 sl61,200

só,240 $4,680 $4, r 60 $15.0E0

f266,748 s266,748

s74.440' $32t.028 $47.560 $443.028

$213,582 s2J2,622 $2t4,r54 $640 358

s223,9m $r 94,834 s152,2t4 w70,9fi

$437,484 $407,456 $366,368 st,2l t,308

sl,497,672 $51 8,95i $t, l4t,702 $3,148,330

$213,il0 s74,341 $ró],549 s451,000

$ó3,364 $22, r 04 s4E,628 st34,097

$r.353.880 $3.733.426

$o

s0

$r ,764, r 46 $6r5,400

Page I of 2

8A_Carl

Service Ârca No. I

Service Arc¡ No. ?E]E

CA.RT SERVICE

Allocated Costs - Depreciation and StarhUp Costs

From Gene¡al and Adminishative (8C)

From Vehicle Maintenance (8C)

From Container Maintenance (8C)

Tofal Allocated Costs - Deprrciation snd Strrf-Up

Tofal Operating Cosfs

Profit (% Opêrating Ratio; i.e, 95%):

Organics Processing Costs 'Total Net Processing Costs

Interest Expense

To Solid Wæte Can Service (84)To Recyclablc Motcrials Cart Service (84)

To Organic Malerials Cart Service (84)To Bulky ltem Scrvice (88)

Total Direct Lease Costs

Allocated Lease Costs

From General and Administrative (8C)

To Solid W¡stc Cart Servicc (84)'[o Rec.vclable Matcrials Cari Sen'ice (84)

To Organic Materials Cârt&rvice (84)To Bulky Itenr Service (88)

Total Pass-Through Costs

Totål Costs

YEAR IRccyclable Organic

Solid Waste Materials Male¡ials Total

$7,841 s2,73s s6,0r7 $ r 6,593

s8,634 s3.0r2 36.626 stE,27l

st6l74 ss.747 $t2.643 s34,864

s4,919,932 53,414,629 $1,558,9t3 $l t,9s3.473

$0$0

9477,8?0 S302,r42 $309,471 $1,039132

$ 34.68 /ton s3,4E3,745 $3.483.745

g0

fi 24.75

/ton/ton s2,052,918 $2,0s2,938

$0 $2,052,918 $2,052,938

$r 9l ,938 tl 74, r 82 ¡t r9,3r8 $485,4i8

$1.675,683 $ I 74, I 82 $2,t72,256 s6,022, t 21

s9.O73,434 $3,950,952 $6,040,640 $t9,01s,026

so$0

s0

50$0

$0

,$0So

Page 2 of 2

8B_Bulky

Proposer Name: Mid Valley Disposal

Bulþ Service

Labor-.Related Costs

Regular Wages

Overtime Wages

Holiday Wages

Vacation Wages

Sick Leave Wages

Workers Compensation Insu¡ance Premiums

Workers Compensation ClaimsHealth & Welfare

Peruion/ ReHrement BeneÊits

Payroll Taxes.

Other (Please List) - X-mas tree curbsideTotrl Labor Related-Costs

Vehicle-Related Cosb (do not include depreciation)

Tires & Tubes

Parts & Supplies (fluid, oil, etc,)

Taxes & Licenses

Other (Please List)Total Vchicle-Releted Costs

Fuel

Other CossLiability & Property Dámage Insurance

Equipment Insurance

Training & Safery Prograins

UniformsOther (Please List) - Public Awareness

Totfll Othcr Costs

Direct DeprecialionContainer DepreciationRoute Vehicle Depreciation

Other Depreciation

Totnl Direct Depreciation

Servicc Area No. I

Service Area No. 2

EE

YEAR I

s7E4,559

$80.920

Page 1 of 2

8B_Bulky

Proposer Name: Mid Valley Disposal

Bulþ Service

Allocated Cosb - Labor, Vehicle, Fuel & Other Costs

From General and Administsative (8QF¡om Vehicle Maintenance (8C)

F¡om Container Maintenance (8C)

Total Allocated Costs - Labor, Yehicle, Fuel & Other

Allocated Costs - Depreciation and Start-Up Costs

From General and Adminishative (8C)

From Vehicle Maintenance (8C)

. From Container Maintenance (8C)

Total Allocnted Costs - Depreciation and Start-Up

Total Operating Costs

Prof¡t (% Operating Ratio; i.e.,95%):

Solid.Waste Disposal

Recycling Processing Costs

Organics Processing Costs

Total Net Processing Costs

lnterest Expense

To Solid ìùy'astc Cart Service (EA)

To Recyclable Materials Cari Service (8A)

To Organic'Materials Cart Service (84)To Bulky Item Service (88)

Total Direct Lease Cost¡

Allocated Lease Costs

From General and Administrative (8C)

To Solid 'Waste Cart Service (84)

To Recyclable Matelials Caft Service (84)

To Organic Materials Cart Service (84)To Bulky Item Service (88)

Total Pass-Through Costs

Totnl Costs

Sen'ic¿ Area No. I

Sewice Arca No. 2

YEAR 1

$3 | 1,373

s44,604

slf ,252

$369,240

$ I ,ó41

sl,8o7

s3,448

$1,692,427

s l 4?,1 68

EE]

$0

/ton

/ton'$ 24.75 /ton

s36,484

$663, r 84

SO

$0

$0

s2,s02,779

Page 2 ol 2

8C Allocated Costs

Proposer Nâmc: Mid VElley D¡sposil

f,ROIOSED ALT,OCATED COgT

Llbot-Relâted Cosb (irclude regular & poot persn^el)Re6ulnr Wlges

. Ov€rtide WîgcsHolidÂy WÂ96V¡altiön Wâg69ick Lt¡ve WagesWorkere Comperontion lnçu¡ancu Prcmir¡nuWorke6 Coßpere¡tion ClûiñPeñion/ Retirement Bcncf¡bI'ayroll TaxcsOther (Ple¡se List) - Health & WÊlfare

Tot¡¡ Llbor Rélntcd.C$ls

VehiclÈRcl¿ted CosbTire ¡. TubcaParbP¿rLs & Supplis (flúid, oil, etc,)

l otal VchiclÈRelâred CGts

Fil0l Costç

Olher C6LsL¡alr¡lity & Prop€rty Dlm¡go IrúurâMeEquipment IrouranceRenl

'uriliti6TelephoncNon-vehicle Relatgl SupplisNon-vehiclc Relàted Taxes & LieG6Tnining & Snfety FrogramsInitiâl Public Educatiôn & Ouhe¡chConlinuing Public Ertucûtioû & Outr@chUnifo¡ncBad DebtPerformÀnc€ BondCo.porate Overhead Chârge (Plcrsc LiEl)Othcr (lìlease List) - Billing

Tor¡l Othe¡ CosE

Tot¡l Lrbor Vêh¡cle, Fucl, ùd Orher C6ts

Scdiee Arcs No I

Seilicç Arc¡ No 2

CENERÂI,AND VEH¡CLE CONTAINERADMINISTRATIVE MAINTENANCE MAINTENANCE

E]El

Vsr I Yc¡¡ I

s2ó,000 s26.000 526.000

was9,7ß

Paoa t ot 2

st0.776 527,408 34,700

Depr<iation (non-routc sptrifjc) ¡nd sFd¡t-Up CosLr

Vchicle Deprci.rtionO¡her DeprKiåtionPrGurenìentC6l Rciorbúr.lement

Tohl Depr(i¡lion and Sla¡t-Up Ccts

Leôsc C6ttFrcility C6t5 (Please L¡st)kæe Cøs (Pleasc Lis$

To!ål L¿¡sr GElr

Tol¡l Coslr to be Allæ¡Hl

L¡bor. vehl.lc, Fuel, & Oth€¡ Costs Alloc¡ted.OutTo Solid Wasle CâltScdicc (84)To Ræyclablc Môtslìh CartSeruice (84)'fo Orgãnic lvlille¡ials Crrt Scvke(8A)To Butky ltenr Seruicc (88)

fot¡l L¡bor, Vehicle, Fucl & Othe¡ CGls AllæaÞd Out

Dcprcclrllon ârd Slerl-Up Costs Allo(¡r€d Oút'Iosoli.l Waste Cart Sco¡ce (84)To Rerycla blc Mo tcrìa ls Cô rt 5c ru ice (E A)'[0 OrEânk M¡terials Cart Srruice(84)To Bujky tþnrSed¡Éc (88)

Tolîl Deprei¿tion ànd StôlhUp Cósþ AIIæítcd Out

Le¡le Costs Allocùted OulTo Solid Waste Cart Scrvicc (EA)

To Recyclablc Malcri¡ls CanSe*ice (84)To Orgilnic Mater¡als Cîrt Scruice(84)To Bulky ttenr Scoicc (88)

Totìl Lease Ccb Allc¡ted Oul

Total Allæaled Out

Ple¡se derribe rllmtion ilethod Ecd (e g tonn¡gc, roul€, etç-)

Tonnage

8C Allocated Costs

$0 $0 s0

fi,477.937 6495,604 9t61,4t7

9t,4a7,672

10000% s3,45t703 $491604 $142359

fl,4n,937

3

Pags 2 oÍ 2

Section 2 - Technical Proposal for Collection Services

Technical Proposal for Collection Services

2,4 lmplementatíonPlan

The objective of th¡s Section is to convey how MVD will expand and roll-out residential 2 collection

services in Fresno according to the City's requirements outlined in its RFP for Residentiol Solid Waste,

Recycloble Moteriols, ond Orgonic Moteilals Senices. As highlighted throughout this Proposol, MVD has

established infrastructure and operations throughout the local area, and in pafticular as a current

contractor in the City of tresno, rendering commercial collection services to the South District. The

Company is farniliar with the service area and has implemented the City's requested scope of seruices in

other localjurisdictions provided in Secfíon f. As with the commercial roll-out, MVD looks fon¡vard tocollaborating with City staff once again to roll out the selected services in a seamless manner,

MVD is committed to working with the C¡ty to ensure compliance with State-mandated diversion

obiectives as well as helping to create an enhanced quality of life in Fresno. lmplementing and operatingprograms with that demonstrate partnership between City and Contractor and that feature strong

community involvement and diversion components have been key to MVD's success with its cities.

General Approach to Services

MVD will provide dll labor, supervision, materials, and equipment necessary to provide for the

automated collection and disposal of refuse, and the automated collection and processing of recyclable

materiats and green waste from all customers utilizing the equipment indicated in previousty in this

Section. Procuring and utilizing units from the City's existing fleet, MVD vehicles meet and exceed thehighest equipment specifications and safety standards in the industry.

MVD ensures all vehicles will, at all times, meet all specifications set forth in the RFP and this proposal,

and are and will continue to be fully compliant v\,¡th all environmental standards, rules, and regulations

including those set forth by the US EPA, CAL/EPA, the California Air Resources Board (CARB).

MVD will continually promote recycling and organics participation at every opportun¡ty to all customers

through the methods indicated in this Section.

A smooth transit¡on is a critical element to the success of a new program and in building confidence and

rapport with customers, Sectrbn /V provides a summary description of MVD's past experience with newprogram and contract start-ups, as indicated in Section I

2 Residentiat is def¡ned as premises with less than fìve urìlts desiBned or used for residence or dwelliñ& whether permanent or temporâry in

nature (draft Á greement),

üt$il!$lljllllïlilIfruMl'tül&ltllHümftrlJüflntrülüH/iEllüüilüffir¡IstlütilütgHllHt[¡l¡tlfEËl!¡utCity of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File 19211

89t-

Section 2 - Technical Proposal for Collection Services

is known for its well organized änd systematic planning and implementation of new contracts withpartÍcular emphasis on excellent coinmunication between MVD, the City and the service recipients prior

to, during and after the start-up of a new contract. With every new contract, MVD prepares an

implementation plan that details the division of duties and responsibilities among the various key

employees, specific tasks and procedures, timeline .for completion, and checklists for completion ofrequired tasks. To ensure a smooth and orderly transition MVD's lmplementation Plan begins upon theexecution of the contract- A prelìminary lmplementotion Timeline. Detailed information relative topublic education is included in Section 2.

Recruit and Train Displaced Workers

As previously done in connection with implementation of commercial collection services in Fresno, MVD

will host an open house for disptaced City workers. During the open house, MVD will present an

overview of the Company, MVD policies and procedures, and will explain and guide prospective

employees through the application process, Attendees can also have all of their questions answered on

the spot during a question and answer period.

Staffing Plan

ln order to preserve safety as the highest priority, MVD employees are experienced in their individ.ual

areas of expertise, are act¡ve members of the solid waste industry, and many of the employees engaged

ín local area operations have been so for many years. MVD will provÍde extensÍve trainíng and guidance

to new employees and continuing training to existing employees such that MVD's employee pool

consists of only the most highly qualified personnel to perform all duties associated with this contract.

MVD will also seek to recruit Fresno residents for open positions wherever possible and appropriate

throughout the term of the Agreement Every rnanagement team member involved in the transition has

extensive experience in successfu lly im plementing new municipa I contracts'

lnitial Scoping Session and City Staff Partlcipation

lmmediately upon contract award the key transition team members will meet to review and outline all

program requirements and specific requirements of this contract. The MVD team will be fully

accountable in meeting all program objectives, key contractual requirements, timelines, and important

milestones, as well as to assign specific responsibilities to MVD staff and monitoring performance

related thereto.

An overall detailed implementation and transition plan, based on the above and the general

tmptementotion Plon included in this section will be fully developed in the two weeks following contract

award, as well as a summary outline of all operational and administrative obligatìons and requirements

as per lhe Agreement. MVD will work in a consultative manner with City staff in order to both meet

contractual requirements, seeking input and approvals as appropriate throughout the process.

üU¡ÌüillllHlflllüI.t4ll[lllitlEl/ftHllliltil ililllffiIlr¡flW¡üü¡ilIffifiiru[Clty of Fresno: Residential Solid Wastg Recyclable Materials and Organic Materials Services - Bid File fl9211

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Section 2 -Technical Proposal for Collection Services

Transiti on Team Respons¡bil¡ti es

This transition team will be responsible for implementing the transition plan and ensuring a smooth

service takeover iri the service area(s). The detailed plan will include:

'/ Adoþtion of existing routes;,/ Transferring customer account information to MVD's Encore customer management system and

verifying customer information;,/ Matching displaced workers to their current routes in äs many cases as possible or as desired by the

employee;/ Procuring the quantity and type of vehicles and equipment needed from the City and shifting them

methodically out of service in order to properly identify them as per City requirementsi./ Training personnel;I Documenting the conditìon of carts and making plans to exchange those in need of repair;,/ Preparing informational and educational materials for residential customers;,/ Rolling-out a public education and informational program during the start-up period;./ Refining the ongoing public education program to City preferences and contract requirements;/ Blending Fresno contract customer seruice performånce requirements and program/contract

specifics into MVD's existing customer seruice program;,/ Conducting employee training; and./ Establish repofting requirements for the City and to C¡ty preferences.

ln addit¡on to imptementation responsibilities, MVD key personnel will utilize its existing community

channels in Fresno and expand those in order to involve itself with community relations activities, civic

organizatìons, public education, and program promotion with respect to its residential customer base tofurthei zero waste program objectives and maintain visibility and a good standing as a responsible and

involved corporate citizen.

MVD's key transition team members will meet once a week (or more frequently, depending upon the

circumstances| throughout the start-up phase of the transition to ensure that alt goals, objectives, and

timelines are met. MVD's designated contractor representatives will meet and/or communicáte with the

City weekly, with updates regardinf, the implementation and transition process.

Customer Service during Transition

Customer Service Representatives (CSRs) will handle service and billing-ielated inqu¡ries and customer

concerns and requests with the courteously and efficiently. MVD CSRs undergo extensive initial and

ongoing training to ensure the highest quality of service to MVD customers, MVD representat¡ves are

trained in customer service techniques such asl

o Utilization of MVD's phone system;r Customer interaction protocol;

C¡ty of Fresno: Residential 5olid Waste, Recyclable Materials and Organic Materials Services - Bid File #9211

Section 2 - Technical Proposal for Collection Services

MVD policies and procedures for responding to any seruice or billing concern;

Use ofthe customer account database and all features.

Fresno C¡ty Customer Serv¡ce Reference Manual

MVD's customer service resource manual will be updated to include information pertain¡ng to the new

Fresno contract. These are some of the items the resource manual will address:

f) Key contract provisions, including , for instance, information regarding rates, service types, billing

and payment procedures, pick.up schedules, hours of collection, container set out requirements,

procedures regarding additional containers and container replacement, extra pick-ups, overage

allowances, special events-such as holiday tree collection and clean-up events, drop-off programs

(if applicable), acceptable recyclable and organic materials, qualifications for fee dìscounts and the

application process (if applicable), holiday schedule, and program dos and don'ts.

2l All CSRs are supplied with a surplus of mailers and brochures to be distributed to customers upon ,

request.3) How to manage prior billing discrepancies during the interim period, MVD will work with the Clty to

develop a plan to consistently address such inquiries through the first few billing cycles accordingto

City expectations and preferences.

Equipment Acquisítion

Vehicles

Upon contract execution, MVD will procure all of the necessary vehicles from the City to perform its

collection responsibilities. MVD will coordinate w¡th the C¡ty to ensuie the vehicles reflect City

preferences in signage and painting.

Carts

MVD will procure the City's carts and will ensure there is an ample buffer inventory for exchanges. MVD

generally maintains a cart inventory of approximately five percent at all times. For uniformity, MVD will

continue to procureToter carts.

Route and Customer Database oevelopment

MVD has successfully achieved seamless transitions to new seruices when awarded a new franchise

contract, and has privatized residential collection services as indicated in the experience examples

presented in Section 1. MVD intends to obtain detailed route rnaps and customer information from the

City as soon as the contract has been execufed, and will take over collection routes utilizing the same

collection personnel wherever possible in order to ensure the transition is seamless. As customer data ¡s

City of Fresno: Residential Solid Waste, Recyclable Mater¡als and Organic Materials Services - 8íd File fr9211

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Sect¡on 2 - Technical Proposal for Collection Services

input into MVD',s Encore customer management system, routes will also be assigned based on the city'sroute information. Encore also has a route optimization feature which will be used to improve the safetyand efficiency of routes within existing collection days. Route maps will be created and submitted to Citystaff for approval prior to implementation.

As is evidenced in the routing details included in the reference prôjects as part of th¡s Proposol andthrough the routing methodology provided in this section's Appendîx, MVD places great importance onintelligent, efficient routing. Because of this, during the first six months of service, MVD operations staffwill review all routes to ensure they are as safe and efficient as possible. MVD will always, to es great anextent as possible, try to maintain each custome/s collection day even when implement¡ng a routesequencing change.

As a key component to our start-up end transit¡on, MVD will-prior to the operations start date-conduct a thorough fleld audit throughout the service area to ensure MVD is completely familiar withthe routes. The audit may include route shadowing, especially in medium to high density areas, MVDpersonnel have already conducted a preliminary fietd survey in the service area(s) as a precursor tosubmitting this proposal in order to assure an accurate Pricé Proposøl. This preliminary assessment willbe expanded as part of the full audit to be conducted by MVD during the pre-startup phase.

Preliminary Customer Database lnformation

ln¡tially, MVD will use the customer account information received from the City to create a preliminarydatabase suitable for checkiirg routes and to create an initial customer database that willform the basisfor future billing and work order preparation. MVD plans to complete this step through receipt of datafiles from the City.

Development of Routing System and Route Sheets

Prior to commencement of collection service, MVD will create a rout¡ng system to enable the productionof route sheets and route maps to be usèd (da¡ly) by our drivers (and updated daily for service levelchanges). MVD will Benerate sequential routing, route entry and exit points, and route maps for theareas to be served. The routing information will be up-loaded back into MVD's customer managementdatabase.

MVD will design and develop routes in an effort to minimize impacts on service rec¡pients. To the extentpossible, MVD will develop route patterns and schedules aligned to current collection schedules tominimize service inte.rruptions and unnecessary confusion to residents.

ln addition to the above, MVD will pay close attention to the following issues when developing routes:

ìtI tl

Cíty of Fresno: ResidentÍal Solid Waste, Recyclable Materials and Organic Materials Services - Bid File fl9211

., Hours of operat¡onMVD determines the number of vehicles to be utilized and the ways in which these vehicles will beroutþd given the parameters of collection hours that are specified by the draft A greement.

o Traffic patternsMVD attempts to design routes that are opposite to peak traffic patterns within the service area(s),to the extent possible or applicable. This is not only beneficial to the service area but increasesMVD's col lection efficiencies.

Transition Timeline

The transition timeline on the following pages reflects the elapsed time necessary for each of the itemsdiscussed in this section

Schedule of Key Operations Tasks -

This schedule .antic¡pates time requirements to accomplish tasks. lt can be programmed to.accommodate any contract award date and adjusted to reflect subtasks.

Execute Agreement with CityThe official ramp up period begins, which triggers all other tasks, below.

Procure VehiclesMVD procures collection vehicles and contâ¡ners from the City for the Seruice Area.

Conduct Route ShadowingFollow.and document residential collection routes, Unique property attr¡butes such as non-conforming collection points, backyard service recipients, and hard-to-service areas will be noted.

Database Matchlng/Finalize Routes and Route MapsDatabase information gleaned from route shadowing and auditing ¡s matched against accountinformation obtained from the City.

Host Displaced Worker Open House and Job FairPresent an overview of MVD, its policies and procedures, employment requirements, and guidepotent¡al employees through the application process.

Driver and Customer Service Review SessionsMVD will condust driver and customer service review training sessions to ensure everyoneunderstands service parameters and is familiar with their new positions.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bíd File #9211

Section 2 - Technical Proposal for Collection Services

iè Schedule of Key Administrative Tasks

Develop Public Education and Outreach and Othei Coltateral MaterialsThe Company anticipates beginning coordination efforts w¡th the City on an organized, effectiveoutreach campaign based on some or all of the ideaspresented in this submittal. MVD will conduct a thoroughreview of all materials, including standard forms, and willrevise them according to Fresno service reguirements. MVD is

confident that, working collaboratively with the City it can

implement an effective customer education program in thenecessary timeframe.

Prìnt Collateral MaterialsAs soon as all collateral materials are developed, printing willbe expedited.

Mail I ntroductory Packetslntroductory packets which announce the transition to MVD as

the new service provider, but which also reassures residentsthat the same great people will be rendering services. lntroductory packets could also includeinformation about billing and rate changes, as approved by City staff.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic MaterieJs Services - Bid F¡le #9211

Sect¡on 2 - lechnical Proposal for Collect¡on Serv¡ces

f' Itr r,

ll t." ¡ ''C¡ty of Fresno: Res¡dential Sol¡d Waste, Recyclable Maler¡als and organic Mâterials Services - Bid F¡le flg211

,6

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EXIIIBIT E

CITY APPROVED SUBCONTRACTORS

The Contractor has identified and the City has approved the following subcontractors to work withContractor in the execution of their responsibilities under the Agreement. City's approval of thesubcontractors below shall not Jimit the Contractor's or their subcontractors' responsibilities, includingbut not necessarily limited to insurance and indemnification, u¡ider this Agreement,

Subcontrrctor Nanre & Atklress Sulnnrtry Dcscription ol Subcontnrctor RolcGreen Valley Recycling Organic material processing23658 North Ave

Cedar Avenue Recycling& Transfer Station3457 S Cedar Ave

Transfer and processing of recyclable materials

Sunset V/aste Paper Transfer and processing ofrecyclable materials2721 S Elm Ave

Waste Managemenl Transfer and processing of recyclable materials4333 E Jelferson Ave

Section 2 - Technical Proposal for Collection Services

Technical Proposal for Collection Services

2.8 Public Education and Outreach Plan

The objective of this section is to:a. Convey MVD's competency in developing and managing public education programsib. Relay its proposed plan for outreach during the transition period and beyond; andc. lllustrate the Company's willingness to become involved in the community, A draÍt Public Educotion

Plon lo serve as the basis for the final plan for contract year one is íncluded in this section. This plancan be quickly updated to incorporate City preferences immediatety after contract award.

MVD owners have bèen collecting solid waste and recyclable materials for decades; during.this timeoutreach efforts have had to flex with industry changes to ensure proper communication of them tocustomers. This resulting communications experience will positively affect a smooth transition betweencontractors for MVD customers.

MVD's approach to commun¡cating with its customers is simple, creative, and effective. lt respects thefact people are inundated with too much information. All materials convey the reasons for cultivatingnew, green behaviors in order to mot¡vate customers, and also identifi¡ additional resources forcustomers who want to know more about environmental issues.

Although a consistent message repetitively delivered in an abbreviated, friendly way is most effective,once the desired behaviors are adopted by customers regular reinforcement is required to sustain them.Finally, emphasizing the difference an individual's recycling practices makes is helpful, MVD's public

education progrâm will continually remind customers of the importance of adhering to programguidelines and will report their progress and associated posit¡ve environmental impacts back to them.

This program incorporates a strong community relations element, which is detailed later in this section.Responsibility .for community interface will be spread amongst the Company' middle and topmanagement, assuring that pledges of human and financial resources to the community's benefit aremade and kept. MVD believes that its track record in Fresno in relation to'the commercial collectioncontract is evidence of this. Also, letters of support including those {rom various Fresno Chambers ofCommerce are included up front with the cover letter.

Because school-age children are Fresno's future, the Company also proposes an interactive educationalcomponent for schools that is age-appropriate, engaging, and designed to reinforce good recyclingbehavior.

Excellent coordination between MVD and the City will contrlbute greatly toward program success. Tofacilitate communication, MVD will respectfully and actively participate in coordination meetings withthe City during the ramp up period and throughout the term of lhe Agreement.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials Services - Bid File fl9211

Section 2 -Technical Proposal for Collection Services

f rlr'lr

MVD willtrack all public education and commun¡ty relat¡ons efforts meticulously and quantify results in

accordance with the draft Fronchise Agreement. The Company has considerable experience doing this in

several other jurisdictions where it is required as part of periodic reportinB.

Staffing

The biogiaphy of lvette Rodiiguez Public Relations Manager, is inctuded in Sect¡bn l. lvette is

responsible for general oversight of the entire program and the following specific public education

activities:

/ Mun¡cipal and media relationst Development and distribution of effective promotional and educationaI collateral materials,

including all electronic components¿ Development and delivery of presentations to business and civic groups./ Coo¡dination of coverage of community activitiesr' Development and delivery of interactive school assemblies, classroom visits, and school group

âct¡v¡t¡es;' Collaboration with all MVD Public Education Specialists for development and distribution of

effective collateraJ materials, includ i ng electronic com ponents¡ Update of website and all e-activities.

MVD has a serious comm¡tment to gaining the maximum residential recyclable and organic materialscollectiôn prograrn participation and diversion, as it does in all of its communities. There is a directcorrelation between MVD's robust outreach program and diversion results, as indicated through theexperience examples shared in Sectíon 1.

For this program, MVD will add one additional public education specialists per District dedicated toFresno.

Government, Community, and Media Relations

The Public Education Manager is responsible for govemment relations. As liaison, she will represent theCompany to the City. ln that capacity she will attend the follow¡ng meetings and engage in the followingactivities:. Attend City Council, City staff, and City strategy development meetings.o Coordinate with the City to integrate municipal and contractor activitìes, as appropriate.o Make requisite presentations and proposals.

¡ Function as a point of contact for contract compliance matters.ln the area of community relations, the Public Education Manager will be responsible for:r Continue to represent MVD in community activities, such as Family Day, Party with Planet at the

Zoo, and many more.

City of Fresno: Residential Solid Waste, Recyclable Materials and Organic Mater¡als Services - Bid File fl9211

115I

Section 2 - Technical Proposal for Collection Services

o Continue to support local community service organizations, such as Ted C. Wills Community Center,Food Bank, Community and Neighborhood Centers, and Fresno Barrious Unidos.

. Ensure mid^ and top-tier managers are involved in community relations activities.

ln her role as media relations interface, the Public Education Manager will:

o Proactively deveÌop rapport with the all local media outlets: TV, radio, and print.¡ Track media coverage of the Company, industry, and env¡ronmental issues and developments in

general.

Although the Public Education Manager'is responsible for the above tasks, she will enBage her publiceducation specialists and other MVD employees to partlcipate in certain activit¡es as may be warrantedor appropriate. For example, in monitoring contract compliance she may bring in the operationsmanager for discussions on matters relating to driver management for quick resolution. A team effort is

employed to ensure MVD programs are effective. The Public Education Manager meets with OutreachSpecialists weekly to discuss progress and new strategies and prcijects which will enhance currentrecycling programs in order to increase diversion, Frequent intercommunication between the PublicEducation Manager, Outreach Specialists, Route Managers, Customer Service Representat¡ves, andDrivers ensures buy-in between all MVD employees with influence over customer satisfaction andbehavior, and that programs are successful due to a consistent approach.

Public Education Plan

This draft Public Educotíon Planfirst addresses items that apply to all programs. Once lhe Agreement is

finalized, MVD's first order of business with the City is to begin meeting regularly to coordinate all start-

up activities, including these.

. Develop, produce and distribute, in close collaboration with the Cit¡ all public education materialsl¡sted in the proceeding plan. Each piece will be carefully considered in orderto determine how theinformation is best conveyed to non-English speaking individuals. All materials will be translated intoSpanish and Hmong. Materials will also factor in the cultural context as appropriate.

¡ Design and place print ads and posters and distribute press releases that correspond to programmilestones as determined to be a wise program complement.

¡ Hold workshops to correspond to program milestones or as otherwise needed in order to be

accessible to custo mers.o Update and maintain a user-friendly website that is both an effective customer seruice tool and that

also organizes the community and helps move it toward its sustainability objectives.

The draft plan on the following page is provided as a start¡ng point for discussions with the City relativeto the Public Education component of the scope of work. Sample outreach materials are included in

Exhibit C.

City of Fresno: Residential Solid Waste, Recyclable Mater¡a¡s and Organic Materials Services - Bid File #9211

Section z - Technical Propoial for Collection Seruices

Public Education and Outreach I Residential Education and Outreach ProgramAll prînted moteriøls olso to be posted to the Compony's website in English, Sponish, ond Hmong.

Postørd Announcement

6ulde to 5eru¡ces

START. UPlntroduces MVD as the new 5eNlce provlder, provides MVD contact lnfomatlon,and reassures customers thev w¡ll ræeive quel¡ty seß¡ce del¡vered through thesame core group ofdrlvert. lnforms resldents about what thêV can expect next.Addltional CSRs wlll be trained and employed to handle lncreased phone callvolumes. The webs¡te w¡ll be updated w¡th a banner on lhe front page ¡ndÌcatingwhere Fresno lead¡ng resìdents to addltlonal lnformal¡onFu¡ly dêscribes Fresno resldeôt¡al colleçtìon p/ograms and initlâtivet lnclud¡ng theexpended curbs¡de recycllng progfâm, ând clean-up guldel¡nes.

ONGOING

Quarterlv newslellers w¡th relevant content.

All res¡dents; approximatelv one month prlorto the operat¡ons start dãte.

All residents; applox¡mately ten davs pr¡or tothe operât¡ons start date.

All residents; quarterly.quarterly newsletter

Annual lnformetlon

Civic/Community Group Outreãch

B¡lling lnserts.

School Edqcation Program

Please see examples of outreach materials and reports featu red in Exhibit C.

Updated pro8råm ¡nfohat¡on such ðt chån8es to seru¡ces, ând holiday collection All res¡denls; annuàlly.calendar. Wlll âlso feeture â rêfreshed theme for the upcoming Veâr.

MVD w¡ll cont¡nue to bu¡ld rapport with ståkeholders ln the community. Public All community group5-Education Manager wìll make herself ând her itaff available to g¡ve presentät¡ons,

As required bared on City preference or obserued trenù which need to becorfecled.

All resldents; âs needed

Âletteldescribin!Múo;ssctiäì:te.¿ucåt¡òndidd-ßìnËi#ite?ii¡Ëãihi¡¡to-"tEã*-lffi-. Distrlct Super¡ntendent for appfovõl of the program.

,

Clty of Fresno: Residentlal Solid Waste, Recyclable Måterlâls and Organ¡c Mater¡als Seru¡ces - Bid Flle 89211

Section 2 -Technical Proposal for Collection Services

Enhanced Community lnvolvement '

Community involvement also consists of recycling presentations and attending community events.

Recycl ing Presentations

Presentations are scheduled with multi-family complexes, clubs, non-profit organizations, church groupsand other community organizations. Presentations are very interactive and informational- Residents areable to see the impact they make when they recycle and when they don't as well. The multi-familyeducatìon program an evening program held in a common community area for families to gather,providing dinner or snack and a presentation regarding the recycling program at their complex.

Materlal Recovery FaciliÇ Tours

Educational tours of MVD's mater¡al recovery facility provide thepublic with an upclose look at the recycling process, MVD has an

education room above its facility that allows students and adultstak¡ng the tour to see recyclable materials being processed throughthe facility's state-of-the-art sortlines. Tours also include reuse artprojects and a picnic area for school field trips.

Community Events

Residents are also targeted through community events. A booth is set up to discuss our recyclingprogram information and provide giveaways. Our interactive prize wheel attracts people of all ages.

They spin the wheel, answer a simple but meaningful question, and get a small prize for part¡c¡pat¡ng.

Each person that comes by our booth is reminded about all the different materials that can be recycledand informed on how to properly dispose of household hazardous waste, electronics, white goods,

sharps and anything else they are concerned about. The following brochures are made available to thepopulations during these events; Household Hazardous waste, Sharps, Recycling Oil, Kids Recycle,

Residential Reclcling Program Brochure, School Program Brochure, and Commercial Recycling Brochure.MVD tailors each event display to the target audience. New concepts and tools are also implementedeach year to keep MVD's audience engaged with our environmental awareness message.

Mater¡als used

MVD uses a combination of a presentation board showíng the recycling process at íts Material RecoveryFacility, giveaways, brochures, tangible examples associated with the recycling process and end product,and its prize wheel to educate attendees in a friendly and fun manner about the recycling opportunitiesMVD makes available to customers and recycling and resource conversation in general.

ln 2011 MVD reached nearly 7000 residents from eight different communities through presentat¡onsand community events.

Cily of Fresno: Residential Sol¡d Weste, Recyclable Materials and Organic Materiels Services - Bid File #9211

Section 2 - Technical Proposal for Collection Services

SchooUCollege Outreach

MVD's school education prograrn is one of the Company's most important programs. MVD notices theincrease in recycling tonnage within the residential and schoolprograms when school aged children, school faculty, and staffreceives recycling education. MVD provides recycling bins andeducational rnaterials to schools. Outreach Staff meet withcustodial and cafeteria staff to ensure recyclable material is

diverted from the waste strearn,

At the start of each school year a letter is mailed to theSuperintendent of each school districl, requesting approval ofMVD's education progrem. Once approved, the OutreachSpecialist informs the principal and teachers about our schoolrecycling program and presentations by mail, e-mail, flyers,posters or a short þresentation during a staff meeting. Once theinformation has been d¡stributed, teachers begin requestingassemblies and classroorn presentetions during the school year.

MVD recycling presentations range from 15 to 45 minutes and are suitable for each grade level.Common.presentation topics include: definition of recycling, reasons to recycle, the landfill, recyctableproducts, common mistaken non-recyclables, the recycling process, the 3 R's (Reduc+ Reuse, Recycle)

and classification games. Presentations are very interactive and also include recycling games such as

Jeopardy and Bingo for prizes. Prizes made out of rec.ycled materials are given to all students dependingon the size of the group,

Outreach specialists also attend events held within MVD schools, for instance: Earth day, Career Day,and Food Fairs. Special programs include:

Phonebook ChallengeThe Phonebook Recycling Challenge is a project sponsored by AT&T Real Yellow Pages, in cooperationwith Fresno County, and MVD. The contest provides schools an opportunity to collect outdated phonebooks for recycling and to compete for cash prizes. Outreach Specialists kick off the challenge byconducting an assembly to rally students to collect and recycle the most phonebooks. During theChallenge MVD tracks and monitors the amount of phone books collected at each school site, At the endof the challenge an assembly is given to the winners of the competition presenting results and prizes.

Hundreds of phonebooks are recycled from each school during the challenge.

Earth Day PresentationsDuring the month of April, MVD's Education Department plans differentprojects and events to promote Earth Day. Our last project included a treeplanting ceremony with a presentation and an assembly providlng studentswith the brief history of Earth Day. Other events include free E-waste evenlsrart contests, community cleanup days, and tree planting in the community.

"[MVD's] dedicoted opprooch with ourschools is one exomple of theirinvolvement in our community ond theircívic leaderchip. MVD's proøctive,

ed u cotio no t recycli ng prog ro ms o r e

evident throughout our communityrequiring very l¡ttle C¡ty time toodmi niste r....MV D's exce ptiono I recycl i ngstofi provide oll the on-ground outreochond follow-up."

ßon Monfredí,Kermon Cîty Monoger

City of Fresno: Residential solid Waste, Recyclable Materials and Organic Materials Serv¡c€s - Bid F¡le f9211

Section 2 - Technical Proposal for Collection Services

State-W¡de' Recycl ¡ng Challenges ParticipationMVD provides schools with information regarding state recycling competitions like the California K-12

School Recycling Challenge (Recycle-Bowl), sponsored by Keep California Beautiful. This year we assistedKerman Floyd Elementary pârt¡cipat€ ¡n the 2011 KAB Recycle Bowl with a kick off assembly and trackthe amount of reryclables collected during thê competition.

StatisticsThis year MVD reached a total of over 10,000 students through classroom presentations, schoolassemblies, and school events. Media used in schools presentâtions include: PowerPoint, posters,tangible examples, and presentation boards

1l

Clty of Fresno: Residential Solid Waste, Recyclable Materials and Organic Materials 5ervices - Bid File Ë9211

EXHIBIT G

SCHEDULE FOR LIQUIDATED DAMAGES

Contractor maybe assessed Liquidated Damages pursuant to Section 13.5 ¡f Contractor fails tofulfill its obligations with regards to the events listed in this Exhibit in accordance with the termsand conditions of the Agreement with regards to the time frame for accomplishing each eventand nature of the responsibility associated with the event, unless otherwise stated in this Exhibit.

COLLECTION RELIABILITY

Maintain Collection Schedule. For failure to Collect from allCustomers on a route on the scheduled day (unless non-Collection waswarranted Dursuant to this Asreement)

$25l Cart

2. Start Nerv Customer. For each failure over five (5) during RatePeriod to commence service to a new Customer within seven (7)calendar days affer order received and account number established

$l 50/ event

3. Missed Pick-Upb, For each failure over fìfteen (15) during RatePeriod to Collect Solid Waste, Recyolable Materiâls, or OrganicMaterials, which has been properly set out for Collection by aCustomer or Citv on the scheduled Collection day

$ I 50/ event

4. Collection of Missed Pick-Ups. For each failure to Collect rnissedCarts after notice from Customer within twenty-four (24) hours ofreceipt of the Complaint

S300/ event

5. Consecutive Missed Pick-Ups. For each failure to Collect SolidWaste, Recyclable Materials or Organic Materials which has beenproperly set out for Collectión, from the.same Customer or Citylocation on two (2) consecutive scheduled pick ups

$150/ event

CoLLECTION QUALTTY

6. Lcaks, Litter, or Spills. For each occurrence over five (5) duringthe Rate Period of unreasonable leaks, litter, or spills of SolidWaste, Recyclable Materidls, or Organic Materials near Carts ôr onpublic streets and failure to pick up or clean up such materialimmediately

$3001 event

7. Improper Cart Placement. For each occurrence over twelve ( l2)during the Rate Period of failure to replace Carl in original position,uorisht. with lids attached to or on Carts

$l 50/ event

8. Care of Privatc Property. For each failure over twenty-four (24)during the Rate Period of not closing a Customer's gate. crossingplanted areas, or darnaging private property (including privatevehicles)

$300/ event

9. Repair of Private Property. For each occurrence over five (5)during the Rate Period of failure to repair damage to property withinthirtv (30) days of the date the damaqe was reported

$250/ event

10. Unauthorized Collection Hours. For each occurrence over five (5)the during Rate Period of Collecting Solid Waste, RecyclableMaterials, and Orsanic Materials during unauthorized hours

$300/ event

I t. Excessive Noise. For each occuûence over twelve (12) during theRate Period of excessive noise

5300/ event

12. Non-Collection Tags. For each failure over twelve (12) during theRate Period of not tagging Carts which have not been Collectedexplaining the reason for non-Collection

$ I 50i event

13. Cleaning Collection Vehicles. For each occurence over five (5)during the Rate Period of failure to clean Collection vehicles'one (l)time oer week

$l 50/ event

14. I)iscourteous Behavior. For each occurrence of discourteousbehavior by Collection vehicle personnel, Customer sen¡icepersonnel, or other employees of Contractor

$500i event

15. Injuries to Others. For each incident ofpersonal injury to a Personrequiring medical treatment or hospitalization, where the negligenceof the Contractor or its personnel was a contributing factor to theiniurv

$5,000/incident

t6. Call Responsiveness. For each failure to answer the telephoneduríng business hours specified in the Agreement or failure foranswering machine to record call during non-business hoursspecified in the Asreement

$300/ event

t7. 30-Second Average Speed of Ansrver. Failure to answer ninetypercent (90%) of calls received during office hours within thirty (30)seconds

$25l call

18. 3-Minute Average Speed of Ansrver. Failure to answer ninety-nineand one half percent (99.5%) of calls received during office hourswithin three (3) minutes

$25l call

t9. After-Hours Call Returns. Failure to retum ninety-nine and onehalf percent (99.5%) of calls received on Contractor's answeringmachine before noon of the followine,Business Day

$25l call

20. Complaint Level. Failure to maintain Complaint level below0.005% where the percent is calculated equal to the number ofComplaints divided by the total service,opportunities (the total liftsperformed in the reportine period)

$10,000/quarter'

21. Respond to Complaint or Sen'ice Request. For each failure toinform Customer, rvithin I Business Day of receipt of the Complaintor service request, of the action Contractor will take to remedy a

Complaint or to resDond to a service request

$300/ event

CUSTOMER SERVICE RESPONSIVENESS

Exhibit GPage 2 of4

22. I Resolve Complaint or Service Request. For each failure to resolve [ $300/ eventor remedy a Complaint or Service Request within five (5) BusinessDays of receipt of Complaint or Service Request with the exceptionof missed pick-ups which are addressed below

REPORTING AND NOTICING

OTHER

23. Monthly Reports. Failure to submit rnonthly roports in thefimeframe specified in this Asreement

$l 00/ day report isoverdue

24. Quarterly Reports. Failure to submit quarterly reports in thetimeframE specified in this Agreement

$200/ day repoft isoverdue

25. Annual Reports. Fatimeframe specified in th

lure to submit annual reports in thes Agreement.

$300/ day report isoverdue

26. Report Hazardous Waste. For each failure to not¡ry theappropriate authorities of reportable quantities of Hazardous Waste

S500/ event

27. Application for Contractor's Compensation. Iailure to submitapplication for Contractor's Compensation in accordance with thetimeframe established in the Asreement

$300/ dayreport is

overdue

PUBLIC EDUCATION

28. Newsletter. Failure to prepare and mail quarterly newsletter to allCústomers by the end of each quarter of the year

$150/ day foreachday untilmailer issent

29. Initial Mailing. Failure to send initial mailing to customers on orbefore the date specified in the implementation plan in Exhibit D

$300/ day for each

day until mailer issent

30 Mailers to Customers. Failure to prepare and distribute "how-to"brochures

$ I 50/ day

32. Dísposal of Recyclable or Organic Materials. For each Ton ofRecyclable or Organic Materials Disposed of without writtenapproval of the Citv,

5250/ Ton

33. Comingling of City Waste with Othcr Jurisdictions. For eachoccurrence of Contractor mixing Solid 'Waste, RecyclableMaterials, and Organic Materials Collected in the City with othermaterials collected from other jurisdictions before the City'smaterial has been accurately weighed and recorded. Eachoccurrence shall include all material collected by a single vehiclein one (l) deliverv to a facility

$500/ event

34. Use of Unauthorized Facilities. For each Ton of Solid \i/aste. $250/ Ton

Page 3 of4 Exhibit C

Recyclable Materials, or Organic Materials Disposed or Procèssedat a facility not approved for use under the provisions ofthisAgreement

35. Maintain Web Site. Failure to maintain accurate and completeweb site dedicated to the services Contractor provides the Citv

$l 50/ day

36. Transition to Next Contractor. Failure(s) 1o take direction fromCity, provide data requested by City within twenty (20) BusinessDays of such a request, or ñrlly cooperate with the City and/ornext contractor as required by Section 4.7

$50,000

37. Failure to Perform Other Obligations. Failure to perform anyof the obligations set forth in this Agreement not specificallystated above and not corrected, or proceeding in good faith tocorrect. within twentv-four 124) hours of notification bv Citv:

$150/ for each

obligation per dayuntil obligation isoerformed

In placing designee's initials at the places provided, each Party specifically confirms theaccuracy of the statements made above and the fact that each Party has had ample opportunity toconsult with legal counsel and obtain an explanation of Liquidated Damage provisions of thetime that the Agreement was made.

Contractor

lnitialHere;

City

lnitial Here:

Page 4 of4 Exhibit G

64 Gal I /wk 1,00 $ 19.20

96 Gol I /wk l.l2 t 25 17

6,t c¡t I Âvk 0 E6 $ 16.51

96 Gol : /wk l.l4 S 21.81

64 Gûl I ^vk

0 39 $ ?,43

96Cal l^vk 053 S ¡025

td c¡l I Avk 0.20 ll I 87

96 Gal I ^vk

0,19 $ 1.74

AnlS¡æ used 204 S l92l

64 Oãl New 3 66 $ 70 12

96 G¡l Ncw 402 $ 77.13

Number of Orß¡nics TMspo¡t/ Râtc lrcr€sr/Monthly OpÈrating Præcssing Disposl Fee TotalMonlhly (Dcaræe) v8

Accounts Compoænl Componçnt' Component Componmt Ralc Cuñnt

Estimled Tmnsporl/ TEnsfe/

605% A lY. 15 13.5'Ã 100¿

R.sldctrai¡l Rrtr!(fnclurlcs Srkctcr.l Solid lV¡stc ContâlhGr Sizc' (l) 96-Gallor Rcclcling Clrt, (l) 96-CalloD Orgatrica Carl)

se.s6 sr.28 32.37 l2-{t

sr2.64 Sr.7o sl.r2 $l¿4 c20.90

S..n¡or Cil¡2.! RatBllncltrdes SclcGted Solid W¡stc Cotrtâincr Sizr' (l ) 964allon R.ßycllnß Ccrt, (l ) 96.Gtl¡ol Orgatr¡cs Csrl)

58.22 Sr.to $2.ró l¿.ll . srJ,60 117.6"/.\

fl0.86 31.46 $2-86 $2.78 317.96 (11.6%\

^ddit¡urcl Solíd lvastc c¡!l¡ío.F

( t7.6Vo\

ill.60Á\

f0.97 S0.95 $6.12 (17.6o/o'l

51.34 $r.3 t s!:g il7.66/"\

s1,70 s0.50

$5. l0 50.69

Ädrl¡tionel Orßsn¡(s Cont¡incx

$0.26 s0,5 t

Å,dd¡lioDrl Rccyrl¡nß ConfeioGrt

$0.25 s0.49

Co¡t!incr E¡ch¡trß.

s5.01

s8.96

tq.tt

s02jt 17.6./.\

I5Zc¡ 117.6,l;'l

s6l.5J ¡?.6%\

Pzgê 1 ol 1

EXHIBIT I

SAMPLE REPORTING F'ORMS

2012

January

February

March

Aprit

May

June

July

August

September

October

November

December

Gross CashReciepts

Gross Cash RecieptsRefunds Less NSF & Refunds

$0'00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Page I of7

2

Items Entered By:

0 Automatic Payment Total0 Call in Credit Cards Total0 Check Payment Total .

0 WEB PORTAL Total0 Grand Total

Batch Total:

$0.00

$0.00

$0.00

$0.00

$0.00

Page 2 of 7

DumoSite fype

GREEN VALLEY Sideload

MRF-KERMAN Sideload

Alv0.00

0.00

0.00

0.00

Material

H..REFUSE Tota|

H-GREENWASTE Total

H-CS Total

Grand Total

Page 3 of 7

qò

Page 4 of 7

D Aug 12 Service Order Count

SiteServiceName

ANNUAL GountCANCEL CountCOMPLAINT CountDECREASE GountINCREASE CountMPU CountNEW CountPRAISE CountREOEL]VER CountREMIND CountREQUEST GountSTOLEN CountXSE DLV GountXSE RMV CountXSE S.RV GountGrand Gount

TransCode

Page 5 of 7

Aug 12 lnvoiced Transaction

Report:

lnvoices Dated Between:

Company(s):

Billing Group(s):

FRESNO MTHLY ADVANCESingle Family 96SÍngle Family 64Senior 96Senior 64Addition 96 wasteAddition 64 wasteAdditional OrganicsAdditional RecyclingContainer Exchange

Invoiced Transaction

MVD FRESNO RES

FRESNO MTHLY ADVANCE

qs0000000

00

Total$0.00$0.00$0.00$0.00$0.00$0.00$o.oo$0.00$0,00

Page 6 of 7

SECT]ON F. EOUCATION ACTIVITIES1. Public Éducation Materlals produced and total number of each distributed

1ST QUARTER

DATE AMOUNT PRINTED TYPE

AMOUNTDISTR¡BUTEDDURING SITE

vlstTs

AMOUNT DISTRIBUTEDDURTNG EVENTS,

MEETINGS, ANDPRESENTATIONS

1t3t2012 1 Resídential Guide 1 1

fotals

CUSTOMER EOUCATION MEETINGS

1',v30t2011 8:00 DBE Outreach Downtown Fresno John B.Atlended event breakfast. Distributed 20educatíon flyers regarding commercial recyclinginformation

T.

f lTlr-ilf,-'

mT HI ffi trtrserutceb¡

Der weel

-

ÊHf;I@tdlli#ållweekllirts

Ire'liuldance-

lFõrffill I

-at

Ilrerulre4ll I

P¡ovlded

rlU2oL7 Resldential 1111 VtÑE r55 -5s554 yard

bin lx 1961x 1 2vd 1x les

iome

:ontaminatlonnside recycling

fo post flyers in thetreákroom and door

ead¡ng to the'ecycling bin.

each pilot and/or néw program, activity-related and narrative reports on goats and milestones and

accomplishments; deseription of problems encountered, actions taken, and any recornmendations tofacilitate progress; and description of vehicles, per3onnel, and equipment utilized for each program

No program to rèport at this time

Table Set up-dressed in

Halloween outfits.

2. Instructions to Customers

lst Quarter Newsletter attached

3. Hazardous Waste incldents

None to report

. KNOW

CITY OF F'RESNOCONTRACTOR' S F'AITIIFUL PERFOR]VIANCE BONI)

ALL MEN BY THESE PRESENTS:

That, California Corporations, âs

PRINCIPAL, and a Corporationorganized and doing business by virtue of the laws of the State of California, and authorized for thepurpose of making, guaranteeing, or becoming sole suret¡r upon bonds or underlakings required orauthorized by the laws of the State of Califomia, as SURETY, are held and firmly bound to the CITY OFFRESNO, a inunicipal corporation of the State of Califomia, hereinafter called OBLIGEE, in the penal

sum of and No/100 Dollars ($_.00) Iawful money of the

United States, for the payment of which, well and truly to be made, we and each of us hereby bindourselves, and our and each of our heirs, executors, administrators, successors, and assigns, jointly and

severally, firmly by these presents.

NOV/, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH THAT:

WHEREAS, the above bounden PRINCIPAL has entered into a contract on . 20 ,entitled "RESIDENTIAL SOLID V/ASTE, RECYCLABLE MATERIALS, AND ORGANICMATERIALS SERVICES" with the OBLIGEE, to do and perfoim the following work, to w¡t: Collect,Transpof, Process, and Dispose of Solid Waste, Recyclable Materials, and Organic Materials generated

within the City of Fresno, jn accordance with the contract.

NOV/, TFiEREFORE, if the above bounded PRINCIPAL shall well and truly perform, or cause 1o

be performed each and all of ths requirements and obligations of said contract to be performed by saidPRINCIPAL, as in said contract set forth, then this BOND shall be null and void; otherwise, it shallremain in full force and effect.

And the said Surety, for value received hereby st¡pulates and agrees that no change, extension oftime, alteration or addition to the terms of the contract or to the work to be performed thereunder or thespecifications 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 rvork or to the specifications.

lN V/ITNESS WHEREOF, said PRINCIPAL and said SURETY have caused these presents to be

duly signed and sealed this _ day of _,2012.

(PRINCIPAL) (suRETY)(sEAL) (sEAL)

(ATTORNEY rN FACT) (ATTORNEY INFACT)(sEAL)(sEAL)

By:

By

By

By:

By:By:

(Signatures of Principalanrl Surely must be acknorvledgcd by a Notary Public)

Exhibit L

City-Owned Equipment to be Acquired by Contractor

NOTË: The equipment quantities and pricing reflect the assumptions of the Contractor

in preparingtheircost and rate proposal.ln the eventof a conflict betweenthis exhibit

and the equipment purchase agreement between the C¡ty and Contractor, theequlpment purchase agreement shall control.

fAveTaee.Peï

lfr¡ivli!ãl{eavv-Dutv Collection Vehicle 90 s 62,s87 S s,eez,gsot¡Êht-Dutv Vehicle 15 5 t6,865 5 zsz,glslontainer Maintenance Eouioment 8 $ t+,ggo $ ttg,o¿oìesidential Carts 320,957 $ 10 S 3,209,570

TOTATALL EqUIPMENT 5 g,zl4,,4ts

ExhibitMCost-Based Ratc Adjustment Methodology

1. GnxBRluThe City shall use the cost-based Rate adjustment method described in this Exhibit to determineRates for Rate Periods 5 and 9, and if applicable, Rate Periods l3 and 17.

The cost-based adjustment involves review of the Contractor's actual cost of operations and

operational statistics (staffing levels, routes, route hours, Customers and their service levels, etc.)

to determine the Total Contractor's Compensation for the cunent Rate Period and to forecast theTotal Contractor's Compensation for the coming Rate Period. The difference (measured as apercentage) between the Total Contractor's Compensation for the coming Rate Period and the

Gross Receipts most-recently reported l2-month period is the Rate Adjustment Factor. The Rate

Adjustment Factor is applied to the then-current Rates to determine the Rates for the comingRate Period.

The intent of performing the cost-bàsed adjustment is to examine the actual impact of changes in

inflation, the number of Customers, and the service level of Customers.

The City will incur costs, including consulting and legal fees, when determining'adjustments tothe Rates in aocordance with this Exhibit and shall require the Contractor to pay for such costs

within sixty (60) calendar days of receipt of the City's invoice for such costs. The Contractor

shall recover such costs through the Rates by treating the costs as an allowable Pass-Through

Cost as described in Section 3.C of this Exhibit. Regardless of Contractor's payment of costs

. associated with said review, City shall retain full and unimpeded discretion in selection of itsagents to ensure, at a minimum, that no conflict of interest arises in the review of Contractor'srequest. City retains the right to select its agents on the basís of their qualifications and

experience and without regard to cost.

2. Dsr¡xrrroNsTerms in upper case that are not otherwise defined in Article I or this Exhibit are defined byreference for the purposes of this Exhibit only.

A. "Annual Percentagc Change" meâns the average CPI value for the l2-month period

ending March of the then-current Rate Period minus the average CPI value for the l2-month period ending March of the most-recently completed Rate Period, divided by the

average CPI value forthe l2-month period ending March of the most-recently completed

Rate Period. The Annual Percentage Change shall be rounded to the nearest thousandth(l000th).

For example, if the Contractor is preparing its Rate application for'Rates to be effectivefor Rate Period 3, the Annual Percentage Change shall be calculated as follows:

[(Average CPI for April 201I through March 2012) - (Average CPI for April 2010

through March 201l)l/ (Average CPI forApril 2010 through March 201 l),

Page I of7

B. "CPI-U" means the All Urban Consumers lndex (CPI-U) compiled and published by theDOL or its successor agency, using the following param'eters.

c Pì -"^tä"fi:ïï n ge I e s-n i v e rs i de- ora n se c o u nt y, cA

Item - All ltemsBase Period - Cunent 1982-84=100Not seasonally adjustedPeriodicity - Monthly

C. "Total Contractor's Compensation" means the total amount to be used as a basis fordetermining the Rate Adjustment Factor. The Total Contractor's Compensation does notreflect or in any way guarantee the Gross Receipts that are 1o be generated by Rates orretained by the Contractor.

3. FoRtcrsrrNcTorALConrRlcroR'sCoMpENsATroNThe Total Contractor's Compensation for the coming Rate Period shall be forecasted in themanner described in thiS Section.

A. Forecasting Total Annual Cost of Operations

l. Determine Actual Total Annual Cost of Operations. Contractods financial. statement, books, and records shall be revie,wed to determìne Contractor's Actual

Total Annual Cost of Operations for the most-recently completed Rate Period toperform all the services in the manner required by this Agreement for each of thefollowing cost categories:

a. Forecasted labor-related costsb. Forecasted vehicle-related costs (excluding fuel)c. Forecasted fi.lel costs

d, Forecasted other costse. Forecasted direct depreciation costsf. Forecasted alJocated costs (labor, vehicle, and other costs)g. Forecasted allocated costs (depreciation)

' 2. Calculate Allorvable Costs. Contractor shallcalculate Allowable Total Annual Costof Operations for the most-recently completed Rate Period by adjusting Aotual TotalAnnual Cost of Operations fur the most-recently completed Rate Period (determinedin accordance with Section 3.4.1 of this Exhib¡t) to deduct non-allowable costs. TheAllowable Total Annual Cost of Operations shall be reported in the cost categoriesidentified in Section 3.A.1 of this Exhibit. Non-allowable costs that shall bededucled from actual costs include the following:

a. Labor and equiptnent costs for personnel and vehicles that are not specified iirthe proposal forms contained in Exhibit C.

Page 2 of7

b. Payments to directors and/or owners of Contractor unless paid as reasonablecompensation for services actually rendered. Reasonatleness shall bedetermined based on available market pricing for similar services and shall be inthe sole discretion of the City.

Travel expenses and entertainment (above five thousand dollars ($5,000)annually in total) expênses, unless authorized in advance by the City.

Payments to repair damage to property of third parties or the City for whichContractor is legally liable.

'Fines for penalties of any nature.

Liquidated Damages assessed under this Agreement.

Federal or State income taxes.

Charitable or pol itioal donations.

Depreöiation or interest expense for Collection vehicles, Carts, othei equipment,offices and other facilities if such items are leased as specified in Exhibit C.

Attorney's fees and other expenses incurred by Contractor in any courtproceeding in which the City and Cohtractor are adverse Parties.

k. , Attomey's fees and other expenses incurred by Contractor arising from any act- or omission in violation of this Agreement.

t. Attorneys' fees and other expenses incured by Contractor in any courtproceeding in which Contractor's own negligence, violation of law or regulation,or \Ä/rong doing are in issue and occasion, in whole or in part, the attomeys' feesand expenses claimed; and attorneys' fees and expenses incurred by Contractorin a court proceeding in which the legal theory or statute providing a basis ofliability againsl Contraclor also provides for separate potential liability for theCity derived from the action of its citizens or Rate payers (such as in a CERCLAlawsuit) unless the Contractor is found not liable in such claims and such claimsarise from acts or occunences within the Term of the Agreement.

Payrnents to Related-Party Entities for products or services, in excess of the costto the Related-Party Entities for those products or services.

Goodwill.

Excess fi¡el costs for route hours greater than those stated in Exhibit C whereexcess fuel costs shall be equal to annual fuel costs less allowable fuel costs,where allowable fuel costs are_calculated to be equal to annual fuel costs divided

m

n

o

d.

e

oÞ.

h.

J

Page 3 of7

by total annual gallons of fuel purchased multiplied by total annual allowablefuel usage stated in Exhibit C.

p. Unreasonable profit sharing distributions.

q. Replacement costs for Carts that need to be replaced because the usefi¡l lifle ofsuch Cart was less than the Term.

r. .Administrative costs greater than the administrative costs proposed for RatePeriod 2 (as presented in Exhibit C) adjusted using the CPI-U

s. Bad debt write-offs in excess of two percent (ZYo) of annual Rate revenues.

3. Forecasted Total Annual Cost of Operations. Forecasted Total Annual Cost ofOperations for the coming Rate Period shall be calculated based on Allowed TotalCost of Operations for the most-recently completed Rate Period'determined inaccordancewith Section 3.4.2 of this Exhibit. The forecasls shall be performed inthe following manner:

a. ,, Forecasted labor-related costs shall be calculated for the coming Rate Period bymultiplying: (i) the Allowed'labor-related ðoss for the most-recently completedRate Period by one (l) plus the Annual Percentage Change in the labor indexdescribed in Section IL3.8., "step I" ofthe Agreement; and, (ii) multiplying theresult of step one by the same percentage change used ìn step one.

b. Forecasted vehicle-related costs (excluding fuel and depreciation costs) shall becalculated for the coming Rate Period by: (i) multiplying the Allowed vehicle-related costs for the most-recently completed Rate Period by one (l) plus theAnnual Percentage Change in the CP[-U: and, (ii) multiplying the result of stepone by the same percentage change used in step one.

c. Forecasted firel costs shall be calculated for the coming Rate Period by: (i)multiplying the Allowed fuel costs for the most-recently completed Rate Periodby I plus the Annual Percentage Change in the fuel index desøibed in SectionI 1.3,8., "step 2" of the Agreement; and, (ii) multiplying the result of step one bythe same percentage change used in step one.

f. Forecasted other costs shall be calculated for the coming Rate Period by: (i)multiplying the allowed other-related costs for most-recently completed RatePeriod by one (l) plus the Annual Percentage Change in CPI-U; and, (ii)multiplying the result of step one by one ( l) plus the Annual Percentage Changein CPI-U.

g. Forecasted direct depreciation expense shall be the amount specified in ExhibitC for vehicles, Carts, and facilities. Direct depreciation expense is a fixed costand is not'sub.iect to inflation.

Page 4 of7

I

Forecasted allocated labor-related, vehicle-related, and other costs shall. becalculated for the coming Rate Period by: (i) multiplying the allowed other-related costs for most-recently completed Rate Period by one (l) plus the.Annual Percentage Change in CPI-U; and, (ii) multiplying the result of step oneby one (l) plus the Annual Percentage Change in CP[-U.

Forecasted allocated depreciation expense shall be the amount specified inExhibit C for vehicles, Carts, and facilities. Allocated depreciation expense is afixed cost and not subject to inflation.

Forecasted Total Annual Cost of Operations for the coming Rate Period shallequal the sum of the following costs, which shall have been calculated inaccordance with the procedures in this Section:

(l) Forecasted labor-related costs(2) Forecasted vehicle-related costs (excluding fuel costs)(3) Forecasted fuel costs(4) Forecasted other costs(5) Forecasted direct depreciation expense(6) Forecasted allooated costs (labor, vehicle, and other costs)

A) Forecasted allocated costs (depreciation)

tr'orecasted Profit. Contractor shall be entitled to Profit on Forecasted Total AnnualCost of Operations. Profit shall be calculated using an operating ratio of 92.0%. Profitshall be calculated using the following formula:

Profit = (Forecasted Total Annual Cost of Operations/Operating Ratio)-Forecasted TotalAnnual Cost of Operations

For Example:Assuming an operating ¡atio of 92o/o

Assuming a Forecasted Total Annual Cost of Operations of $1,000,000( 1,000,000/.92)- 1,000,00 0:86,9 56.52

Forecasted Pass-Through Costs. Pass-Through Costs for the coming Rate Period shallbe forecasted in the following manner:

l. Forecasted Disposal Cost. Annual Forecasted Disposal Cost = (Disposal Fee atDesignated Disposal Location) x (total Tons of Solid Waste Collected for themost-recently reported l2-month period),

2. Forecasted Recyclable Materials Processing Cost. Annual ForecastedRecyclable Materials Processing Cost = (Processing Fee at Approved Recyclable

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Materials Processing Site) x (total Tons of Recyclable Materials Collected for the. most-recently reported l2-month period) .,

3. Forecasted Organic Materials Processing Cost. Annual Forecasted OrganicMaterials Processing Cost = (Processing Fee at ApproVed Organic MaterialsProcessing Site) x (total Tons of Organic Materials Collected for the most-recently reporled I 2-month period)

4. Forecasted Interest Expense; Interest Expense is 5521,922 per year and shallnot be adjusted over the Term of the Agreement.

5. Forecasted Diiect Lease Costs. Direct Lease Costs are $0 per year and shall notbe adjusted over the Term of the Agreement.

ó. F'orecasted Allocated Lease Costs. Allocated Lease Costs are $0 per year andshall not be adjusted over the Term of the Agreement.

Forecasted City F'ees

(l) .Forechsfed Franchise Fee. Forecasted Franchise Fees, which shall equal fifteenpercent (15%) of the Forecasted Total Contractor's Compensation.

(2) Forecasted Contract Management and Enforcement Fee. The ForecastedContract Management and Enforcement Fee shall be in an amount prescribed by theCity. Jf no revised Contract Management and Enforcement Fee is provided by theCity, the Contract Management and Enforcement Fee paid to the City during theprior Rate Period shall remain in effect.

(3) Rate Application Rcvierv Costs. An amount determined by the City to ¡eimbursethe Contractor for payment of the City's costs, including consulting and legal feesassociated with determination ofRates under this Exhibit,

(4) Forecasted Total City Fees. Forecasted Total CityFees shall equal the sum of the-Forecasted Franchise.Fee, Forecasted Contract Management and Enforcement'Fee,Forecasted Shedding Fee, Forecasted Vehicle Impact Fee, and Rate ApplicationReview Costs.

4. RÁTEADJUSTMENTFIcTonS

A, Operating Component Rate ^A,djustment Factor. The "Operating Component RateAdjustment Factor" shall be detennined by dividing the sum of the Forecasted Total Annual Costof Operations, Forecasted Profit, Forecasted lnterest Expense, Forecasted Direct Lease Costs,and Forecasted Allocated Lease Costs by the Operating Component portion of Rate Revenuesreceived over the most recent twelve (12) rnonths, rounded to the nearest thousandth. TheOperating Component Rate Adjustmçnt Factor shall not exceed five percent, either positive or

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negat¡ve, during Rate Periods where rates are set using the Cost-Based Rate AdjustmentMethodology.

B. Disposal Component Rate Adjustment Factor. The "Disposal Component Rate AdjustmentFactof' shall be determined by dividing the Forecasted Disposal Cost by the DisposalComponent portion of Rate Revenues received over the most recent twelve (12) months, roundedto the nearest thousandth (l000th). The Disposal Component shall only be applied to SolidWaste Collection Rates and shall not be included in the calculation of Recyclable MaterialsCollection Rates, Organic Materials Collection Rates, or Special Charges.

C. Processing Component Rate Adjustment Factor. The "Processing Component RateAdjustment Factor" shall be determined by dividing the Forecasted'Processing Cost by theProcessing Component portion of Rate Revenues received over the most reçent twelve (12)months, rounded to the nearest thousandth (l000th). This calculation shall be performed for theForecasted Recyclable Materials Processing Cost for determination of Recyclable MaterialsCollection Rates. The calculation shall be performed separately for the Forecasted OrganicMaterials Processing Cost for determination of Organic Materials Collection Rates. TheProcessing Component Rate Adjustment Factor shall not be applied to Solid tüaste.CollectionRates or Special Charges. The Processing Component Rate Adjustment Factor for OrganicMaterials Collection Rates shaìl not excEed the Operating Component Rate Adjustment Factor asdeterminèd in Section 4.4. of this Exhibit.

D. tr'ee Component Rate Adjustment Factor. The "Fee Component Rate Adjustment Factor"shall be determined by dividing the Forecasted Total City Fees by the sum of all Franchise andOther Fees, as described in Anicle l0 of the Agreement, paid to the City by Contractor over themost recent twelve (12) months, rounded to the nearest thousandth (l000th).

5. .ADJUSTMENT oF RÀrEsEach then-current Rate component shall be multiplied by the associated component RateAdjustment Factor to calculate fhe effective Rate for the coming Rate Period. All SpecialCharges shall be adjusted using the Operating Component Rate Adjustment Factor

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