HomeMy WebLinkAbout18 - Newport Coast Solid Waste Collection & Refuse Service+18
AGREEMENT WITH
CR&RINCORPORATED
FOR RESIDENTIAL SOLID WASTE COLLECTION AND RECYCLING SERVICES
IN NEWPORT COAST
THIS AGREEMENT is made and entered into as of this 14th day of August, 2007, by
and between the CITY OF NEWPORT BEACH, a charter City and municipal
corporation ( "City "), and CR &R Incorporated, a California corporation whose address is
11292 Western Avenue, Stanton, California 90680, ( "Hauler "), and is made with
reference to the following:
RECITALS
A. City is a municipal corporation duly organized and validly existing under the laws
of the State of California with the power to carry on its business as it is now being
conducted under the statutes of the State of California and the Charter of City.
B. On January 1, 2002, City annexed the area referred to as Newport Coast which
is depicted on Exhibit A ( "Newport Coast').
C. City is planning to hire a waste hauler to provide fully automated curbside refuse
collection services for single - family residential properties in Newport Coast
( "Project ") which will be paid for by the City.
D. The principal members] of Hauler for purposes of Project shall be Dean A.
Ruffridge, Senior Vice President.
E. City has solicited and received a proposal from Hauler and desires to retain
Hauler to render residential waste hauling services under the terms and
conditions set forth in this Agreement.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as
follows:
1. TERM
The term of this Areement shall commence on the above written date, and shall
terminate on the 12 of October 2017, unless terminated earlier as set forth herein.
The term of this Agreement shall automatically be extended for five (5) additional
one (1) year terms (automatic extensions) with the extensions to automatically
commence upon the expiration of the initial term or any extended term, unless the
City notifies Hauler or Hauler notifies City in writing at least one hundred and eighty
(180) days before the end of the initial term or any extended term, of its intent to
terminate this Agreement at the conclusion of the initial term or any extension. For
purpose of this Agreement the term ( "Effective Date ") shall refer to October 1, 2007,
which is the date that waste collection services are to begin under this Agreement
2. SERVICES TO BE PERFORMED
Hauler shall diligently perform all the services described herein and in the Scope
of Services attached hereto as Exhibit B and incorporated herein by reference
( "Contract Services "). The City may elect to delete certain tasks of the Scope of
Services at its sole discretion.
3. TIME OF PERFORMANCE
Time is of the essence in the performance of services under this Agreement and
Hauler shall perform the services in accordance with the schedule included in
Exhibit B. The failure by Hauler to strictly adhere to the schedule may result in
termination of this Agreement by City.
4. COMPENSATION TO HAULER
A. From the Effective Date, City shall pay Hauler for the Contract Services in
accordance with the provisions of this Section and the Schedule of Billing
Rates attached hereto as Exhibit C and incorporated herein by reference.
mai��mumnceaseEpe ears Such adjustment shall be made by
multiplying the billing rates then in effect by a fraction, the numerator of
which is the value of the Consumer Price Index for the calendar month
three (3) months preceding the calendar month for which such adjustment
is to be made and the denominator of which is the value of the Consumer
Price Index for the same calendar month immediately prior to the Effective
Date. For example, if the adjustment is to occur effective July 1, 2008, the
index to be used for the numerator is the index for the month of April 2008
and the index to be used for the denominator is the index for the month of
April preceding the Effective Date. The "Consumer Price Index" to be
used in such calculation is the Consumer Price Index, All Urban
Consumers (All Items), for the Los Angeles Anaheim Riverside
Metropolitan Area, published by the United States Department of Labor,
Bureau of Labor Statistics (1982 84 = 100). If both an official index and
one or more unofficial indices are published, the official index shall be
used. If said Consumer Price Index is no longer published at the
adjustment date, it shall be constructed by conversion tables included in
such new index. The parties hereto expressly agree that the maximum
yearly increase shall not exceed three percent (3 %). Except as expressly
provided herein or in Exhibit C, the Hauler shall be responsible for all other
costs and expenses related to Hauler's performance of this Agreement
including, but not limited to, the cost of providing additional containers and
fees imposed for disposal regardless of increases in landfill disposal and
recycling facility costs.
Notwithstanding the foregoing, in the event the Orange County Landfill
increases disposal fees and /or Hauler is required by the City to divert more
than forty percent (40 %) of the solid waste collected by Hauler from landfills
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by City, the Hauler may apply to the City for an increase in the disposal
portion of the basic service fee rate, described in Exhibit C, charged to the
City. The Hauler shall supply the City with any and all information and
documentation requested by the City that the City determines is necessary
to analyze the request including, but not limited to, performing an audit and
reviewing/verifying Hauler's landfill records and tonnage reports. Hauler and
City agree that the decision to increase the disposal portion of the basic
service fee rate, described in Exhibit C, charged the City shall be within the
sole discretion of the City and the City shall not be obligated to increase the
amount charged the City.
B. Hauler shall submit invoices for Contract Services provided to City on a
monthly basis and all invoices submitted to the City shall be accompanied
by a monthly report indicating in detail all Contract Services performed.
City shall pay invoices within thirty (30) days after receipt by the City.
Payment shall be deemed made when deposited in the United States
mail, first class postage pre -paid, and addressed to Hauler as specified in
Section entitled "Notices."
5. INCREASE OR DECREASE IN SCOPE OF SERVICES
Hauler shall perform fully automated refuse collection services as requested by
the Centrast Proiect Administrator, as described herein and as noted on Exhibit
B. The Administrator may give written authorization for additional services up to
one thousand dollars ($1,000) per month.
6. DISPUTES PERTAINING TO PAYMENT FOR WORK
Should any dispute arise respecting whether any delay is excusable, or its
duration, the value of any extra work done, or any work omitted, or any extra
work which Hauler may be required to do, or respecting any payment to Hauler
during the performance of the Agreement, such dispute shall be decided by the
Project Administrator with any appeal to the City Manager. The City Manger's
decision shall be final.
7. REIMBURSEMENT FOR EXPENSES
Except as provided in this Agreement and Exhibit C, Hauler shall not be
.reimbursed for any disposal fees or other costs and expenses unless prior written
authorization is obtained from the Project Administrator.
8. LABOR AND PERFORMANCE BONDS
Hauler shall furnish, concurrently with the Effective Date of this Agreement, a
bond or other instrument satisfactory to the Project Administrator in an amount
equal to one hundred percent (100 %) of six months of the contract price/amount
to be paid under this Agreement in any one year as security for the faithful
performance of this Agreement. The Labor and Performance Bond shall remain
in effect throughout the term of this Agreement.
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9. DISPOSAL OF SOLID WASTE
A. Except as expressly provided in this Section, Hauler shall comply with all
recycling and diversion requirements imposed by law, ordinance, or
regulation on the City and /or Hauler. On a quarterly basis, Hauler shall
divert forty percent (40 %) of all solid waste collected by Hauler from
landfills. In no event shall Hauler deposit sixty percent (60 %) or, more of
the solid waste collected pursuant to this Agreement at any landfill during
any calendar quarter. In the event new or additional diversion
requirements are imposed by law, ordinance or regulation on City and /or
Hauler, the City shall have the right to require Hauler to divert additional
solid waste from landfills by providing Hauler with ten (10) days written
notice of the new diversion requirements. On or before the 30th day of
the month following the end of the previous calendar month, Hauler shall
provide all documents and information designated by the General
Services Director to prove that Hauler has complied with this subsection,
any applicable law, ordinance, regulation, or condition related to recycling
and diversion of solid waste.
B. Hauler shall dispose of solid waste collected or transported by Hauler only
by taking such solid waste to a State certified /licensed landfill, State
certified /licensed transfer station, State certified /licensed recycling facility
or State certified /licensed materials recovery facility which is lawfully
authorized to accept that specific type of solid waste material. Hauler
shall not dispose of solid waste by depositing it on any land, (except a
permitted facility) whether public or private, or in any river, stream or other
waterway, or in any sanitary sewer or storm drainage system. Nothing in
this Agreement shall be deemed or construed as authorizing Hauler to
operate a landfill, recycling center, or other solid waste disposal facility.
C. All solid waste, in addition to recyclables, collected by Hauler shall
become the property of Hauler upon placement by the customer for
collection. If Hauler violates the terms in Section 9(A) and Section 9(B)
above, Hauler agrees that the City has the future right to direct that solid
waste be delivered to a permitted disposal facility designated by City.
This exercise of "flow control" by the City shall be made upon at least 30
days prior written notice to Hauler, and written notice shall include the
violation(s) prompting the City's action regarding "flow control." Failure to
comply with the recycling /diversion requirements and delivery/disposal of
materials to a certified /licensed facility shall be a material breach of this
Agreement.
D. Hauler shall implement a load check program that includes, at a
minimum, a visual check of all containers to be emptied to protect against
inclusion of hazardous waste and shall prepare a written record of all
hazardous waste discovered during the process. The records shall
comply with all State and Federal Hazardous Waste Regulations, shall be
maintained for the length of the term of the Agreement, and shall be
provided to the City on or before the 15th day of the month following the
end of the previous calendar month.
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10. REPORTS
A. Hauler shall submit to City monthly reports setting forth any complaints
(e.g. written or oral comments received by Hauler expressing
dissatisfaction with Hauler or any services provided by Hauler that relate in
any manner to this Agreement); the total amount (in tons) of solid waste
which Hauler collected in the City of Newport Beach during the reportable
month; the total weight (in tons) of solid waste disposed of by Hauler at
landfills and transfer stations which Hauler collected in the City of
Newport Beach during the reportable month; the total weight and the
weight by material category (in tons) of solid waste disposed of by Hauler
at recycling and materials recovery facilities during the reportable month
which Hauler collected in the City of Newport Beach; the name and
location of all solid waste and recycling facilities where City of Newport
Beach materials were delivered; and such other tonnage or other
information as requested by the General Services Director including, but
not limited to, weigh tickets and recycling records. Such monthly reports
shall be prepared on such form as required by the General Services
Director. In addition, on a quarterly basis, the Hauler shall submit to the
City any equipment, terminal safety, employee safety and inspection
reports, citations, records and other documents for all Hauler's operations
and activities that relate in any way to this Agreement including, but not
limited to, periodic California Highway Patrol biennial terminal inspection
reports; vehicle citations; California Highway Patrol Incident reports;
citations issued to drivers/operators; other citations issued to the Hauler
or its employees; California Occupational Safety and Health
Administration 300 reports; and Lead Environmental Agency
inspection /compliance reports. Each quarterly report and accompanying
reports/citations shall be submitted on or before the 15th day of the month
following the end of the quarter (i.e. report due January 15 for first quarter
after the Effective Date) and submitted to:
General Services Director
City of Newport Beach
3300 Newport Blvd.
Newport Beach, CA 92663
B. Hauler shall comply with all recycling and diversion requirements imposed
by law, ordinance, or regulation on the City. Monthly reports stating the
total amount (in tons) of solid waste which Hauler landfilled, recycled and
collected should accurately reflect a forty (40 %) diversion rate as required
by the City. At the end of each quarter, monthly reports will be evaluated
for AB939 compliance. Failure to comply with the recycling and diversion
requirements shall be a material breach of this Agreement.
11. VEHICLES, EQUIPMENT AND SERVICES
A. Any and all containers provided to customers of Hauler for storage,
collection or transportation of solid wastes shall meet the requirements
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designated by the General Services Director as well as State of California
minimum standards for solid waste handling established under Public
Resources Code Section 43020 and applicable health requirements. The
General Services Director shall have the right to approve the color of
containers, manufacturer of containers, and lettering and decals used on
containers. Hauler shall repair or replace any container which is
damaged, broken, lost or stolen with a container approved by the General
Services Director at no cost to the City.
B. All containers and all vehicles used by Hauler in the performance of solid
waste handling services shall be marked with Haulers name and
telephone number in letters which are easily read by the general public.
All solid waste containers used in the performance of this Agreement shall
be kept clean and in good repair to the satisfaction of the General
Services Director.
C. Equipment.
1. The vehicles used pursuant to this Agreement shall have the name
of the Hauler, the Hauler's local telephone number, and a unique vehicle
identification number for each vehicle prominently displayed on all
collection vehicles. The vehicles shall also display a statement as to the
type of alternative fuel being used.
2. The Hauler shall use alternative fuel vehicles approved by the
South Coast Air Quality Management District for fully automated refuse
collection services. Vehicles shall meet all requirements specified per
AQMD Rule 1193. Vehicles used for collection services must be fully
automated side - loading refuse trucks, using a fully mechanized amt to
pick up and dump automated waste collection containers. Drivers should
not exit the vehicle to assist with securing the containers to, or lifting the
containers into, the refuse collection truck. Hauler shall, at all times,
provide such number of vehicles and such equipment as will be adequate
for the collection, transportation and disposal services which it is
authorized to provide under this Agreement. All vehicles utilized by Hauler
in the performance of this Agreement shall be registered with the
Califomia Department of Motor Vehicles. All vehicles shall pass the
required periodic California Highway Patrol biennial inspection of the
terminals cur). Within fifteen (15) days of the BIT inspection, Hauler
shall provide records from all of the terminal(s) responsible for the
maintenance and repair of equipment used in the City. All vehicles and
equipment used by Hauler in the performance of this Agreement shall be
subject to inspection by the City upon twenty -four (24) hours notice by the
General Services Director. All vehicles shall be property maintained, kept
clean and in good repair, and shall be uniformly painted. All drivers
employed by Hauler and operating equipment in the City shall be properly
licensed for the class of vehicle they drive, enrolled in the Department of
Motor Vehicles Employee Pull Notice (EPN) program, and abide by all
State and federal regulations for driver hours and alcohol and controlled
substances testing.
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3. Each vehicle shall be so constructed and used in a manner so that
no rubbish, garbage, debris, oil, grease or other material will blow, fall, or
leak out of the vehicle. All solid waste shall be transported by means of
vehicles which are covered In such a manner as to securely contain all
solid waste and to prevent such solid waste from projecting, blowing,
falling or leaking out of the vehicles. Any solid waste dropped or spilled in
collection, transfer or transportation shall be immediately cleaned up by
Hauler. A broom and a shovel shall be carried at all times on each vehicle
for this purpose. Should a hydraulic or other type of material spill occur as
a result of collection services, Hauler shall notify the City within 1 hour.
Hauler shall not transfer loads from one vehicle to another on any public
street or private roadway, unless it is necessary to do so because of
mechanical failure or damage to a collection vehicle which renders it
inoperable and the vehicle cannot be towed. In addition, each collection
vehicle shall be equipped with trash bags, masking tape and notice of
non - collection tags for the purpose of separating hazardous waste for
return to the generator. A communications device such as a two -way
radio or a cellular telephone shall also be maintained on each vehicle at all
times.
4. Hauler shall not store any vehicle or equipment on any public
street, public right -of -way or other public property in the City of Newport
Beach without obtaining a Temporary Street Closure Permit from the
Public Works Department and prior written consent of the General
Services Director.
5. Should the General Services Director at any time give written
notification to Hauler that any vehicle does not comply with the standards
hereunder, the vehicle shall be promptly removed from service by Hauler
and not used again until inspected and authorized in writing by the General
Services Director.
6. All vehicles used in performance of this Agreement shall be
maintained and operated in conformance with all applicable laws, statutes,
rules and regulations. In performance of this Agreement, the issuance of
four (4) or more vehicle, driver /operator or other citations that relate in any
way to this Agreement within a 12 month period shall be deemed to be
breach of this Agreement.
D. Quarterly reports setting forth. information regarding Haulers vehicles and
equipment shall be prepared on such form as required by the General
Services Director. Each quarterly report shall be submitted on or before the
15th day of the month following the end of the previous calendar quarter.
E. Litter Abatement: Hauler shall use due care to prevent any waste material
collected pursuant to this Agreement from being spilled or scattered during
the collection or transportation process. If any waste material is spilled,
hauler shall promptly clean up all spilled materials whether on private or
public property. Hauler shall clean up existing litter in the immediate vicinity
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of any collection container (including the areas on private and public
property where collection containers are delivered for collection) whether or
not Hauler has caused the litter.
12. ADMINISTRATION
This Agreement will be administered by the General Services Department.
The General Services Director, or his designee, shall be the Project
Administrator and shall have the authority to act for City under this Agreement.
The Project Administrator or his/her authorized representative shall represent
City in all matters pertaining to the services to be rendered pursuant to this
Agreement.
13. CITY'S RESPONSIBILITIES
To assist Hauler in the execution of its responsibilities under this Agreement, City
agrees to, where applicable, provide access to and upon request of Hauler, one
copy of all existing relevant information on file at City. City will provide all such
materials in a timely manner so as not to cause delays in Hauler's work
schedule.
14. STANDARD OF CARE, WORKMANSHIP, SUPERVISION
A. The Hauler shall provide a work force sufficient to perform the Contract
Services and all members of the work force shall be hired in compliance
with State and Federal law.
B. All Contract Services shall be performed by competent and trained
employees. Hauler represents that it possesses the professional and
technical personnel required to perform the services required by this
Agreement, and that it will perform all services in a manner commensurate
with community professional standards. All services shall be perforated
by qualified and trained personnel who are not employed by City, nor have
any contractual relationship with City. Hauler hereby certifies that all work
performed under this Agreement will conform to the requirements of this
Agreement and all applicable federal, state and local laws and the
professional standard of care.
C. The work force shall include thoroughly skilled, experienced, and
competent supervisors who shall be responsible for adherence to the
terms of this Agreement by directly overseeing the Contract Services
operations. All supervisory personnel must be able to communicate
effectively in English (both orally and in writing). An order given to
supervisory personnel shall be deemed delivered to the Hauler. Hauler
shall provide City with a designated supervisors name(s) and shall notify
the City of the name of any successor within ten (10) days of change in
supervision.
D. All Hauler personnel working in Newport Coast shall be neat in
appearance and in uniform.
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E. Hauler represents and warrants to City that it has, shall obtain, and shall
keep in full force in effect during the term hereof, at its sole cost and
expense, all licenses, permits, qualifications, insurance and approvals of
whatsoever nature that is legally required of Hauler to practice its
profession. Hauler shall maintain a City of Newport Beach business
license during the term of this Agreement.
F. Whenever Hauler has knowledge that any actual or potential labor dispute
is delaying or threatens to delay the timely performance of this Agreement,
Hauler shall immediately give notice to the City and any and all relevant
information. In the event of a labor dispute which delays or impacts the
performance of Contract Services, the City reserves the right to use its
own forces or to contract with other haulers to perform the Contract
Services. The City and Hauler agree that it will be deemed a breach of
this Agreement if Hauler cannot provide full Contract Services seven (7)
days after services have been impacted or delayed as a result of a labor
dispute.
G. Hauler shall attend meetings, special events and public meetings as
requested by the City. Hauler shall provide all necessary and appropriate
personnel to attend each meeting and any requested promotional material
so that the topics on the agenda can be addressed fully and completely.
15. CUSTOMER PRIVACY
Hauler shall strictly observe and protect the rights of privacy of customers.
Information identifying the contents and composition of a customer's containers
shall not be revealed to any person, governmental unit, agency or company,
unless authorized by the customer or by order of a court of law, or by statute.
This provision shall not be construed to prohibit Hauler from preparing,
participating in, or assisting in the preparation of solid waste characterization
studies, waste stream analyses that may be required by any law or regulation, in
preparing or assisting in the preparation of any reports/audits required pursuant
to this Agreement, or providing any information required to be provided to City by
other provisions of this Agreement or that is necessary for City to comply with
any law or regulation. Hauler shall not market or distribute customer mailing lists
to any party except the City.
16. CUSTOMER SERVICE SURVEYS
The Hauler shall conduct customer service studies to help the City evaluate
performance. Prior to the Effective Date, at the completion of 6 (six) months
from the Effective Date, and every year thereafter, the City shall provide a list of
questions that shall be used in the customer service survey. At the Haulers
expense, the Hauler will prepare and mail a survey form/card to each Newport
Coast residence serviced by Hauler pursuant to this Agreement. All survey
forms and cards will be mailed directly from the resident to the City at the
Haulers expense, via business reply mail. The City shall share the results of the
survey with the Hauler. Upon receipt of the results from the initial survey. City
and Hauler will meet and determine the future service levels to be incorporated
into contract performance requirements.
17. INDEPENDENT CONTRACTOR
It is understood that City retains Hauler on an independent contractor basis and
Hauler is not an agent or employee of City. The manner and means of conducting
the work are under the control of Hauler, except to the extent they are limited by
statute, rule or regulation and the express terms of this Agreement. Nothing in this
Agreement shall be deemed to constitute approval for Hauler or any of Hauler's
employees or agents, to be the agents or employees of City. Hauler shall have the
responsibility for and control over the means of performing the work, provided that
Hauler is in compliance with the terms of this Agreement.
18. COOPERATION
Hauler agrees to work closely and cooperate fully with City's designated Project
Administrator and any other agencies that may have jurisdiction or interest in the
work to be performed. City agrees to cooperate with the Hauler on the Project.
19. CITY POLICY
Hauler shall discuss and review all matters relating to policy and Project direction
with City's Project Administrator in advance of all critical decision points in order
to ensure the Project proceeds in a manner consistent with City goals and
policies.
20. HAZARDOUS WASTE
A. General. Hauler shall be aware of, and comply with, all laws and
regulations relating to the handling and transportation of Hazardous
Substances, as defined in Section 22, including those requiring training
and documentation. If Hauler observes any substances which it believes
to contain a Hazardous Substance within the City, including but not
limited to in containers designed for waste Hauler shall not collect such
Hazardous Substance but shall immediately notify the appropriate regulatory
agencies and the City.
B. Notice to Customers. Hauler shall notify all Customers at least once a
year in writing by mail of: (i) the prohibition against the Disposal of
Hazardous Substance in authorized containers and (ii) the obligation of
each customer to provide for the proper handling and disposition of
Hazardous Substance. To the extent that Hauler has actual knowledge of
the existence of such Hazardous Substance in a container placed for
collection, Hauler shall not collect such container. Hauler shall, prior to
leaving the location where such Hazardous Substance has been
observed, leave a tag at least 2" x 6" which informs the customer why the
collection was not made and lists the telephone number for the Orange
County Department of Environmental Management.
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C. Hauler to Segregate and Dispose. In the event Hauler inadvertently
collects any Hazardous Substance and during the course of
transportation and disposition becomes aware that it has collected such
Hazardous Substance, Hauler shall segregate Hazardous Substance, and
shall arrange for its transport and Disposal to a properly permitted
Recycling, treatment or disposal facility of Haulers choosing at Haulers
sole expense. Hauler shall be solely responsible for the transport and
disposition of all Hazardous Substance that is collected by the Hauler.
Hauler will cooperate with City attempts to locate and collect the costs of
such transport and disposition from the responsible customer.
D. Operating Procedures and Employee Training. Hauler shall establish,
implement and maintain written operating procedures designed to ensure
Haulers utilization of techniques generally accepted in the waste hauling
industry for cities of the size and nature of the City of Newport Beach, to
handle and dispose of Hazardous Substance and its compliance with the
provisions of this Section. Hauler shall establish, implement and maintain
an employee training program and shall ensure that employees
responsible for the identification of Hazardous Substance are fully trained.
Hauler shall maintain documentation which describes the training
received by its employees.
21. INSURANCE REQUIREMENTS
Without limiting Haulers indemnification of City, Hauler shall obtain, provide and
maintain at its own expense during the term of this Agreement, a policy or
policies of liability insurance of the type and amounts described below and in a
form satisfactory to City.
A. Certificates of Insurance. Hauler shall provide certificates of insurance
with original endorsements to City as evidence of the insurance coverage
required herein. Insurance certificates must be approved by City's Risk
Manager prior to commencement of the Agreement. Current certification
of insurance shall be kept on file with City at all times during the term of
this Agreement.
B. Signature. A person authorized by the insurer to bind coverage on its
behalf shall sign certification of all required policies.
C. Acceptable Insurers. All insurance policies shall be issued by an
insurance company currently authorized by the Insurance Commissioner
to transact business of insurance in the State of California, with an
assigned policyholders' Rating of A (or higher) and Financial Size
Category Class VII (or larger) in accordance with the latest edition of
Best's Key Rating Guide, unless otherwise approved by the City's Risk
Manager.
D. Coverage Requirements.
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I . Workers' Compensation Coverage. Hauler shall maintain Workers'
Compensation Insurance and one million dollars ($1,000,000) Employer's
Liability Insurance for his or her employees in accordance with the laws of
the State of California. Any notice of cancellation or non - renewal of all
Workers' Compensation policies must be received by City at least thirty
(30) calendar days (10 calendar days written notice of non - payment of
premium) prior to such change. The insurer shall agree to waive all rights
of subrogation against City, its officers, agents, employees and volunteers
for losses arising from work performed by Hauler that relates in any way
to this Agreement.
2. General Liability Coverage. Hauler shall maintain commercial
general liability insurance in an amount not less than twe five million
dollars ($25,000,000) per occurrence for bodily injury, personal injury, and
property damage, including without limitation, contractual liability. If
commercial general liability insurance or other form with a general
aggregate limit is used, either the general aggregate limit shall apply
separately to the work to be performed under this Agreement, or the
general aggregate limit shall be at least twice the required occurrence
limit.
3. Automobile Liability Coverage. Hauler shall maintain automobile
insurance covering bodily injury and property damage for all activities of
the Hauler arising out of or in connection with work to be performed under
this Agreement, including coverage for any owned, hired, non -owned or
rented vehicles, in an amount not less than five million dollars
($5,000,000) combined single limit for each occurrence.
4. Pollution Liability Coverage. Hauler shall maintain Hauler's
environmental liability insurance with limits in an amount of not less than
One Million Dollars ($1,000,000) per occurrence and annual aggregate
covering claims for on -site, under -site, or off -site bodily injury and
property damage and regulatory fines as a result of pollution conditions
arising out of its operations under this Agreement.
E. Endorsements. Each general liability, automobile liability and pollution
liability insurance policy shall be endorsed with the following speck
language:
1. The City, its elected or appointed officers, officials, employees,
agents and volunteers are to be covered as additional insureds with
respect to liability arising out of work performed by or on behalf of the
Hauler.
2. This policy shall be considered primary insurance as respects to
City, its elected or appointed officers, officials, employees, agents and
volunteers as respects to all claims, losses, or liability arising directly or
indirectly from the Hauler's operations or services provided to City. Any
insurance maintained by City, including any self- insured retention City
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may have, shall be considered excess insurance only and not contributory
with the insurance provided hereunder.
3. This insurance shall act for each insured and additional insured as
though a separate policy had been written for each, except with respect to
the limits of liability of the insuring company.
4. The insurer waives all rights of subrogation against City, its elected
or appointed officers, officials, employees, agents and volunteers.
5. Any failure to comply with reporting provisions of the policies shall
not affect coverage provided to City, its elected or appointed officers,
officials, employees, agents or volunteers.
6. The insurance provided by this policy shall not be suspended,
voided, canceled, or reduced in coverage or in limits, by either party
except after thirty (30) calendar days (10 calendar days written notice of
non - payment of premium) written notice has been received by City.
F. Timely Notice of Claims. Hauler shall give City prompt and timely notice
of claim(s) made or suit instituted arising out of or resulting from Hauler's
performance under this Agreement.
G. Additional Insurance. Hauler shall also procure and maintain, at its own
cost and expense, any additional kinds of insurance, which in its own
judgment may be necessary for its proper protection and prosecution of the
work.
22. RESPONSIBILITY FOR DAMAGES AND INJURY /INDEMNIFICATION
A. Hauler Responsibility. Hauler shall be responsible for any damages
caused as a result of Haulers acts or omissions including, but not limited
to injuries to or death of any person or damage to public and /or private
property and damages public improvements as a result of Haulers
placement and retrieval of the solid waste containers.
1. City shall refer complaints about damage to private property,
including common areas in common -area subdivisions, to Hauler. Hauler
shall promptly repair, or arrange for the repair of, all damage to private
property caused by its employees at Hauler's sole expense.
2. Hauler shall use commercially reasonable efforts to prevent
damage to all streets over which its collection equipment may be
operated, and Hauler shall obtain all required approvals for operation of
its Collection vehicles on private streets.
3. Hauler shall use commercially reasonable efforts to prevent spills of
fuel, fluids (such as oil, hydraulic fluid, brake fluid, etc.) on streets, and if
such a spill occurs, Hauler shall within 1 hour notify the City (including the
Director of General Services or his/her designee) and all proper
13
regulatory authorities of said spill and release of fluids, and shall clean, at
Hauler's expense, the spilled fluids in coordination with, and to the
satisfaction of, City and applicable regulatory agencies. Upon a release of
such fluids, the driver shall immediately park the vehicle and it shall
remain parked until the leak is repaired. In such event Hauler shall not
park the leaking vehicle within two hundred (200) feet of a storm drain
and shall utilize absorbent, sand bags or other appropriate means to
prevent leaking fluids from entering storm drains. In the event of any type
of spill or other emergency, Hauler shall be responsible for securing the
immediate safety of the vehicle driver, all other employees of Hauler and
all persons and property in the surrounding vicinity.
B. General Indemnification. Hauler shall indemnify, hold harmless, and
defend City, and each of its past, present and future elected officials,
officers, employees, agents, consultants, volunteers, affiliates, assignees,
representatives, attorneys, subsidiaries, and affiliated entities and their
respective successors, heirs and assigns (collectively, "Indemnified
Parties ") for, from and against any costs, expenses, damages, and
losses, including actual attorneys fees ( "Losses ") of any kind or character
to any person or property arising directly or indirectly from or caused by
any of the following: (i) any act or omission of Hauler or its respective
officers, directors, shareholder members, partners, employees, agents,
contractors, subcontractors, suppliers, representatives and affiliates
( "Hauler Representatives "); (ii) Hauler's or Hauler Representative's
activities; (iii) any accident or casualty within or arising out of the
services /work performed under the Agreement; (iv) any violation or
alleged violation of any law, ordinance or statute now or hereafter enacted
arising out of services /work performed pursuant to the Agreement; (v) the
negligence or willful misconduct of Hauler or any of Hauler
Representatives in the performance of the services /work under the
Agreement; and (vi) any breach of the Agreement.
Hauler shall not be required to indemnify, hold harmless and defend the
Indemnified Parties from the sole negligence, active negligence or willful
misconduct of the Indemnified Parties. Nothing in this indemnity shall be
construed as authorizing any award of attorney's fees in any action on or
to enforce the terms of this Agreement. This indemnity shall apply to all
claims and liability regardless of whether any insurance policies are
applicable. The policy limits do not act as a limitation upon the amount of
indemnification to be provided by the Hauler.
C. Hazardous Substances Indemnification. Hauler shall indemnify the
Indemnified Parties from and against all claims, actual damages
including, but not limited to, special and consequential damages, natural
resource damage, punitive damages, injuries, costs, response,
remediation, and removal costs, losses, demands, debts, liens, liabilities,
causes of action, suits, legal or administrative proceedings, interest, fines,
charges, penalties and expenses attorneys' and expert witness fees and
costs incurred in connection with defending against any of the foregoing
or in enforcing this indemnity of any kind whatsoever paid, incurred or
14
suffered by, or asserted against, the Indemnified Parties or Hauler arising
directly or indirectly from or caused by any of the following: (i) the violation
of any Environmental Laws or the failure to clean up and mitigate the
consequences of the spill or release of any Hazardous Substance; and (ii)
Hauler's activities under this Agreement concerning any Hazardous
Substance at any place where Hauler stores or disposes of solid or
hazardous waste pursuant to this Agreement, or preceding Agreements
between City and Hauler. The foregoing indemnity is intended to operate
as an agreement pursuant to the Comprehensive Environmental
Response, Compensation and Liability Act 42. U.S.C. Section 9607(e)
and any amendments thereto; California Health and Safety Code Section
25364, to insure, protect, hold harmless, and indemnify City from liability.
As used herein, the term "Environmental Laws" shall mean "any and all
present and future federal, state or local laws (whether common law,
statute, rule, regulation or otherwise), permits, orders and any other
requirements of Governmental Authorities relating to the environment or
any "Hazardous Substance" or "Hazardous Substance Activity" (as
defined herein) (including, without limitation, the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 (42
U.S.C. §§ 9601 et seq.) as amended from time to time and the applicable
provisions of the California Health and Safety Code and California Water
Code).
As used herein, the term "Hazardous Substance" shall mean "any (a)
chemical, compound, material, mixture or substance that is now. or
hereinafter defined or listed in, or otherwise classified pursuant to any
Environmental Law as a "hazardous substance ", "hazardous material,"
"hazardous waste," "extremely hazardous waste," "infectious waste,"
"toxic waste," "toxic pollutant," or any other formulation intended to define,
list or classify substances by reason of deleterious. properties or affect
and (b) petroleum, petroleum by- products, natural gas, natural gas
liquids, liquefied natural gas, synthetic gas usable for fuel (or mixtures of
natural gas in such synthetic gas), ash, municipal solid waste, steam,
drilling fluids, produced waters and other wastes associated with the
exploration, development and production of crude oil, natural gas or
geothermal resources."
D. AB939 Indemnification. Hauler agrees to meet the diversion
requirements set forth in Section 9A of this Agreement and all
requirements of City's Source Reduction and Recycling Element as to the
portion of the solid waste stream handled by Hauler. Hauler agrees to
protect, defend, indemnify, and hold City harmless against all fines or
penalties imposed by the California Integrated Waste Management
Board, or other entity, arising from the failure of Hauler to meet the
diversion requirements set forth in Section 9 A of this Agreement and the
Integrated Waste Management Act diversion requirements with respect to
the portion of the solid waste stream collected by Hauler.
15
23.
24.
25.
26.
27.
E. Notice. City agrees to give notice to Hauler when the City receives a
claim for damages or other liability for which Hauler has provided
indemnification under this Section.
PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS
Except as specifically authorized under this Agreement, the services to be
provided under this Agreement shall not be assigned, transferred contracted or
subcontracted out without the prior written approval of City. Any of the following
shall be construed as an assignment: the sale, assignment, transfer or other
disposition of any of the issued and outstanding capital stock of Hauler, or of the
interest of any general partner or joint venturer or syndicate member or cotenant
if Hauler is a partnership or joint- venture or syndicate or cotenancy, which shall
result in changing the control of Hauler. Control means fifty percent (50 %) or
more of the voting power, or twenty -five percent (25 %) or more of the assets of
the corporation, partnership orjoint- venture.
SUBCONTRACTING
The parties recognize that a substantial inducement to City for entering into this
Agreement is the professional reputation, experience and competence of Hauler.
Assignments of any or all rights, duties or obligations of the Hauler under this
Agreement will be permitted only with the express written consent of City. Hauler
shall not subcontract any portion of the work to be performed under this
Agreement without the prior written authorization of City.
CONFIDENTIALITY
All documents, including drafts, preliminary drawings or plans, notes and
communications that result from the services in this Agreement, shall be kept
confidential unless City authorizes in writing the release of information.
INTELLECTUAL PROPERTY INDEMNITY
The Hauler shall defend and indemnify City, its agents, officers, representatives
and employees against any and all liability, including costs, for infringement of any
United States' letters patent, trademark, or copyright infringement.
RECORDS
A. Hauler shall maintain a complete and
records with respect to the costs in
any labor and disposal costs incurred
Services performed under this Agree
disbursements charged to City, for a
for any longer period required by la
Hauler under this Agreement. All su ch
All Hauler's books and other business
in performance of this Agreement, shat
authorized City representative during
16
accurate books and other business
tarred under this Agreement including
under this Agreement, any Contract
ment, and any expenditures and /or
minimum period of three (3) years, or
w, from the date of final payment to
records shall be clearly identifiable.
records, or such part as may be used
I be subject to inspection and audit by
regular business hours upon two (2)
business days notice. Hauler shall allow inspection of all work, data, records,
proceedings and activities related to the Agreement for a period of three (3)
years from the date of final payment to Hauler under this Agreement.
The Hauler shall be responsible for all audit and other costs and expenses
incurred that relates in any way to audits performed by the City to verify that
Hauler is in compliance with the terms and conditions of this Agreement
including, but not limited to, the auditing of facility recycling records,
diversion statistics, landfill rate increases, vehicle records, and safety
records.
B. No report, information or other data given to or prepared or assembled by
hauler pursuant to this Agreement may be made available to any individual
or organization without prior approval by City unless such disclosure is
required by law or court proceedings.
28. WITHHOLDINGS
City may withhold payment to Hauler of any disputed .sums until satisfaction of
the dispute with respect to such payment provided that City notifies Hauler in
writing as soon as possible specifying the reason for such withholding. Such
withholding shall not be deemed to constitute a failure to pay according to the
terms of this Agreement. Hauler shall not discontinue work as a result of such
withholding. Hauler shall have an immediate right to appeal to the City Manager
or his/her designee with respect to such disputed sums. Hauler shall be entitled
to receive interest on any withheld sums at the rate of return that City earned on
its investments during the time period, from the date of withholding of any
amounts found to have been improperly withheld.
29. CITY'S RIGHT TO EMPLOY OTHER HAULERS
Hauler shall have an exclusive right to provide the Contract Services under this
Agreement. Citv reserves the right to emolov other haulers in connection with
the Proiect if Hauler breaches any term or condition of this Agreement and the
contract is terminated per Section 33.
30. CONFLICTS OF INTEREST
The Hauler or its employees may be subject to the provisions of the California
Political Reform Act of 1974 (the "Act "), which (1) requires such persons to
disclose any financial interest that may foreseeably be materially affected by the
work performed under this Agreement, and (2) prohibits such persons from
making, or participating in making, decisions that will foreseeably financially
affect such interest.
17
If subject to the Act, Hauler shall conform to all requirements of the Act. Failure to
do so constitutes a material breach and is grounds for immediate termination of
this Agreement by City. Hauler shall indemnify and hold harmless City for any
and all claims for damages resulting from Hauler's violation of this Section.
31. NOTICES
All notices, demands, requests or approvals to be given under the terms of this
Agreement shall be given in writing, and conclusively shall be deemed served
when delivered personally, or on the third business day after the deposit thereof
in the United States mail, postage prepaid, first -class mail, addressed as
hereinafter provided. All notices, demands, requests or approvals from Hauler to
City shall be addressed to City at:
Attn: Mark Harmon
General Services Department
City of Newport Beach
3300 Newport Boulevard
Newport Beach, CA, 92663
Phone: 949 - 644 -3055 Fax: 949-650 -0747
All notices, demands, requests or approvals from CITY to Hauler shall be
addressed to Hauler at:
Attention: Dean A. Ruffridge, Senior Vice President
CR &R Incorporated
11292 Western Avenue
Stanton, California 90680
Phone: (714) 826 -9049 Fax: (714) 890 -6347
32. LIQUIDATED DAMAGES
Failure of the Hauler to strictly comply with each and every term and condition of
this Agreement will result in damages being sustained by the City. Such
damages are, and will continue to be, impracticable and extremely difficult to
determine. Hauler and City agree that any violations of the terms and conditions
of this Agreement shall be corrected within the time frame set forth by the City, in
its sole discretion, in the City's written Notice of Deficiency. For each and every
violation noted in the Notice of Deficiency that is not corrected within the time
frame set forth in the Notice of Deficiency, Hauler shall pay to the City, or have
withheld from moneys due it, the sum of $250 per calendar day. Execution of
the contract shall constitute agreement by the Hauler and City that $250 per
calendar day is the minimum value of the costs and actual damage caused by
failure of the Hauler to comply with any term or condition of this Agreement, that
such sum is liquidated damages and shall not be construed as a penalty, and
that such sum may be deducted from payments due the Hauler.
IN
33. DEFAULTITERMINATION
In the event that either party fails or refuses to perform any of the provisions of this
Agreement at the time and in the manner required, that party shall be deemed in
default in the performance of this Agreement. If such default is not cured within a
period of ten (10) calendar days,. or if, in the Citv's sole discretion more than ten
(10) calendar days are reasonably required to cure the default and the defaulting
party fails to give adequate assurance of due performance within ten (10) calendar
days after receipt of written notice of default, specifying the nature of such default
and the steps necessary to cure such default, and thereafter diligently take steps to
cure the default, the non - defaulting party may terminate the Agreement forthwith by
giving to the defaulting party written notice thereof.
34. COMPLIANCE WITH ALL LAWS
Hauler shall at its own cost and expense comply with all statutes, ordinances,
regulations and requirements of all governmental entities, including federal, state,
county or municipal, whether now in force or hereinafter enacted. Hauler shall
conform to all applicable provisions of State and Federal law including, applicable
provisions of the California Labor Code and the Federal Fair Labor Standards
Act. In addition, all work performed by Hauler shall conform to applicable City,
county, state and federal laws, rules, regulations and permit requirements and be
subject to approval of the Project Administrator and City.
35. WAIVER
A waiver by either party of any breach, of any term, covenant or condition
contained herein shall not be deemed to be a waiver of any subsequent breach
of the same or any other term, covenant or condition contained herein, whether
of the same or a different character.
36. INTEGRATED CONTRACT
This Agreement represents the full and complete understanding of every kind or
nature whatsoever between the parties hereto, and all preliminary negotiations
and agreements of whatsoever kind or nature are merged herein. No verbal
agreement or implied covenant shall be held to vary the provisions herein.
19
37
38.
39
40.
41.
42.
CONFLICTS OR INCONSISTENCIES
In the event there are any conflicts or inconsistencies between this Agreement and
the Scope of Services or any other attachments attached hereto, the terms of this
Agreement shall govem.
INTERPRETATION
The terms of this Agreement shall be construed in accordance with the meaning
of the language used and shall not be construed for or against either party by
reason of the authorship of the Agreement or any other rule of construction which
might otherwise apply.
AMENDMENTS
This Agreement may be modified or amended only by a written document executed
by both Hauler and City and approved as to form by the City Attorney.
SEVERABILITY
If any term or portion of this Agreement is held to be invalid, illegal, or otherwise
unenforceable by a court of competent jurisdiction, the remaining provisions of this
Agreement shall continue in full force and effect.
CONTROLLING LAW AND VENUE
The laws of the State of Califomia shall govern this Agreement and all matters
relating to it and any action brought relating to this Agreement shall be adjudicated
in a court of competent jurisdiction in the County of Orange.
EQUAL OPPORTUNITY EMPLOYMENT
Hauler represents that it is an equal opportunity employer and it shall not
discriminate against any subcontractor, employee or applicant for employment
because of race, religion, color, national origin, handicap, ancestry, sex or age.
20
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on
the day and year first written above.
APPROVED AS TO FORM:
By:
Aaron C. Harp, Assistant City Attorney
for the City of Newport Beach
ATTEST:
By:
LaVonne Harkless,
City Clerk
CITY OF NEWPORT BEACH,
A Municipal Corporation
Mayor Steven Rosansky
for the City of Newport Beach
HAULER:
(Corporate Officer)
Title:
Print Name:
By:
(Financial Officer)
Title:
Print Name:
Attachments: Exhibit A — Newport Coast Map
Exhibit B - Scope of Services
Exhibit C — Schedule of Billing Rates
21
COUNCIL AGENDA The Hauler shall be responsible for all audit and other costs and expenses
NO. M LLq�12'7 incurred that relates in any way to audits performed by the City to verify that
Hauler is in compliance with the terms and conditions of this Agreement
including, but not limited to, the auditing of facility recycling records,
diversion statistics, landfill rate increases, vehicle records, and safety
records.
B. No report, information or other data given to or prepared or assembled by
hauler pursuant to this Agreement may be made available to any individual
or organization without prior approval by City unless such disclosure is
required by law or court proceedings.
28. WITHHOLDINGS
City may withhold payment to Hauler of any disputed sums until satisfaction of
the dispute with respect to such payment provided that City notifies Hauler in
writing as soon as possible specifying the reason for such withholding. Such
withholding shall not be deemed to constitute a failure to pay according to the
terms of this Agreement. Hauler shall not discontinue work as a result of such
withholding. Hauler shall have an immediate right to appeal to the City Manager
or his /her designee with respect to such disputed sums. Hauler shall be entitled
to receive interest on any withheld sums at the rate of return that City earned on
its investments during the time period, from the date of withholding of any
amounts found to have been improperly withheld.
29. CITY'S RIGHT TO EMPLOY OTHER HAULERS
4 MR
Hauler shall have an exclusive right to provide the Contract Services under this
Agreement.
30. CONFLICTS OF INTEREST
The Hauler or its employees may be subject to the provisions of the California
Political. Reform Act of 1974 (the "Act "), which (1) requires such persons to
disclose any financial interest that may foreseeably be materially affected by the
work performed under this Agreement, and (2) prohibits such persons from
making, or participating in making, decisions that will foreseeably financially
affect such interest.
If subject to the Act, Hauler shall conform to all requirements of the Act. Failure to
do so constitutes a material breach and is grounds for immediate termination of
this Agreement by City. Hauler shall indemnify and hold harmless City for any
and all claims for damages resulting from Hauler's violation of this Section.
31. NOTICES
17
All notices, demands, requests or approvals to be given under the terms of this
Agreement shall be given in writing, and conclusively shall be deemed served
when delivered personally, or on the third business day after the deposit thereof
in the United States mail, postage prepaid, first -class mail, addressed as
hereinafter provided. All notices, demands, requests or approvals from Hauler to
City shall be addressed to City at:
Attn: Mark Harmon
General Services Department
City of Newport Beach
3300 Newport Boulevard
Newport Beach, CA, 92663
Phone: 949- 644 -3055 Fax: 949- 650 -0747
All notices, demands, requests or approvals from CITY to Hauler shall be
addressed to Hauler at:
Attention: Dean A. Ruffridge, Senior Vice President
CR &R Incorporated
11292 Western Avenue
Stanton, California 90680
Phone: (714) 826 -9049 Fax: (714) 890 -6347
32. LIQUIDATED DAMAGES
Failure of the Hauler to strictly comply with each and every term and condition of
this Agreement will result in damages being sustained by the City. Such
damages are, and will continue to be, impracticable and extremely difficult to
determine. Hauler and City agree that any violations of the terms and conditions
of this Agreement shall be corrected within the time frame set forth by the City, in
its sole discretion, in the City's written Notice of Deficiency. For each and every
violation noted in the Notice of Deficiency that is not corrected within the time
frame set forth in the Notice of Deficiency, Hauler shall pay to the City, or have
withheld from moneys due it, the sum of $250 per calendar day. Execution of
the contract shall constitute agreement by the Hauler and City that $250 per
calendar day is the minimum value of the costs and actual damage caused by
failure of the Hauler to comply with any term or condition of this Agreement, that
such sum is liquidated damages and shall not be construed as a penalty, and
that such sum may be deducted from payments due the Hauler.
33. DEFAULT /TERMINATION
In the event that either party fails or refuses to perform any of the provisions of this
Agreement at the time and in the manner required, that party shall be deemed in
default in the performance of this Agreement. If such default is not cured within a
period of ten (10) calendar days, or if more than ten (10) calendar days are
reasonably required to cure the default and the defaulting party fails to give
adequate assurance of due performance within ten (10) calendar days after receipt
of written notice of default, specifying the nature of such default and the steps
necessary to cure such default, and thereafter diligently take steps to cure the
im
default, the non- defaulting party may terminate the Agreement forthwith by giving to
the defaulting party written notice thereof.
34. COMPLIANCE WITH ALL LAWS
Hauler shall at its own cost and expense comply with all statutes, ordinances,
regulations and requirements of all governmental entities, including federal, state,
county or municipal, whether now in force or hereinafter enacted. Hauler shall
conform to all applicable provisions of State and Federal law including, applicable
provisions of the California Labor Code and the Federal Fair Labor Standards
Act. In addition, all work performed by Hauler shall conform to applicable City,
county, state and federal laws, rules, regulations and permit requirements and be
subject to approval of the Project Administrator and City.
35. WAIVER
A waiver by either party of any breach, of any term, covenant or condition
contained herein shall not be deemed to be a waiver of any subsequent breach
of the same or any other term, covenant or condition contained herein, whether
of the same or a different character.
36. INTEGRATED CONTRACT
This Agreement represents the full and complete understanding of every kind or
nature whatsoever between the parties hereto, and all preliminary negotiations
and agreements of whatsoever kind or nature are merged herein. No verbal
agreement or implied covenant shall be held to vary the provisions herein.
37. CONFLICTS OR INCONSISTENCIES
In the event there are any conflicts or inconsistencies between this Agreement and
the Scope of Services or any other attachments attached hereto, the terms of this
Agreement shall govern.
38. INTERPRETATION
The terms of this Agreement shall be construed in accordance with the meaning
of the language used and shall not be construed for or against either party by
reason of the authorship of the Agreement or any other rule of construction which
might otherwise apply.
19
CITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 18
August 14, 2007
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: General Services Department
Mark Harmon, Director, (949) 644 -3055
mharmon (a-) city. newport- beach. ca. us
SUBJECT: Approval of Ten Year Agreement with CR &R Inc. to Provide Fully
Automated Residential Refuse Collection Services in Newport Coast
ISSUE:
Should the City Council approve the negotiated terms and agreement with CR &R, Inc.
to provide fully automated residential refuse collection services in the Newport Coast
area for ten years?
RECOMMENDATION:
Approve the terms and award a ten -year agreement with CR &R, Inc. through
September 30, 2017 to provide fully automated residential refuse collection services in
the Newport Coast area.
DISCUSSION:
Background:
The current contract for residential refuse collection services expires on September 30,
2007. The scope of work in the proposed contract includes providing collection services
to approximately 4,000 residences in the Newport Coast area of the City. It is projected
that the Newport Coast area will total approximately 5;200 residences at build out. The
area served in this agreement includes neighborhoods along Newport Coast Drive from
east Coast Highway to the 73 Freeway in the eastern section of the City. Bin service in
the Newport Coast area is not included in this agreement.
Award Contract for Newport Coast Fully Automated
Residential Refuse Collection Services
August 14, 2007
Page 2
Council Direction /Negotiation Period
On July 10, the City Council unanimously selected CR &R, Inc to perform residential
refuse collection services in Newport Coast. In doing so, the City Council also directed
staff to enter into a three week negotiation period to discuss service levels in the
agreement. CR &R was the lowest priced bidder among five qualified waste haulers that
submitted proposals to the City. In addition to cost, haulers were evaluated on several
criteria, including:
• Prior experience providing fully automated services in other communities.
• Their ability to meet a recycling requirement of 40% and utilize a permitted
recycling facility.
• Prior equipment and facility inspection and safety compliance records.
• Their ability to utilize fully automated alternative fueled vehicles.
In entering the negotiation period, Council directed staff to discuss all service level
terms listed in CR &R's proposal, with the exception of cost per unit. Over the past
several weeks, staff and representatives from CR &R have met in good faith and agreed
to the following terms and conditions:
• Collection Levels: CR &R will collect refuse materials from each residence in
Newport Coast on a weekly basis. Should a collection be missed, CR &R must
collect materials by the end of the following day.
® Collection Times: CR &R will perform collection services between 7:00 A.M.
and 6:30 P.M. Monday through Friday. Existing collection schedule shall not be
modified without City approval.
• Additional Collection Services: CR &R will provide a bulky item pickup twice
per year for each single family residence with a limit of four items per request.
CR &R shall also provide curbside collection of Christmas trees during the first
two weeks after Christmas Day.
• Reports: CR &R will submit a monthly report to the City, detailing all tonnage
collected in Newport Coast for both trash and recyclable materials.
• Customer Service Survey: CR &R will pay for the cost of a City- approved
survey form that will be mailed to residents prior to the start of the contract, six
months after the start of the contract, and every year thereafter.
Award Contract for Newport Coast Fully Automated
Residential Refuse Collection Services
August 14, 2007
Page 3
• Recycling Requirement: CR &R will meet a recycling requirement of 40% in the
Newport Coast area.
• Fully Automated Alternative Fueled Vehicles: CR &R will utilize only
alternative fueled fully automated collection vehicles to perform collection
services, with the exception of bulky item collections.
• Vehicle Maintenance Records: CR &R will submit a quarterly report to the City,
detailing all California Highway Patrol "BIT" inspection and citation records for
vehicles used in refuse collection services.
Work Deficiencies: Should defined service levels not be met, the City will notify
CR &R in writing. Upon first notification, the City will issue a written warning
notifying CR &R of the deficient performance. Should subsequent violations
occur, CR &R could be subject to fines of $250 per incidence and $250 per day
that the violation is not corrected. If violations continue to occur, the contract
may be suspended or terminated.
• Annual Consumer Price Index Adjustment: The City shall grant CR &R a
three percent annual increase at the end of the first anniversary of the
agreement; and every year thereafter. CR &R has requested a flat 3% annual
increase as opposed to a variable increase based on the consumer price index
as listed in the City's RFP.
® Container Types /Sizes: The City shall specify the colors, size, and
manufacturer of trash and recycling containers.
• Charges for Additional Containers: Newport Coast residents may obtain
additional trash and recycling containers. The City will pay for additional refuse
containers up to 10% of the total billed residential accounts. There will be no
additional charge to the City for extra recycling containers.
• Landfill Cost Increases: Should Orange County landfill rates increase, CR &R
may apply to the City for an increase in the disposal rate portion of the overall
rate charged to the City. Any increases granted will be subject to City Council
approval.
• State Recycling Mandate Increases: Should the City require higher diversion
levels due to new state mandates, CR &R may apply to the City for an increase in
the service rate portion of the overall rate charged to the City. Any increases
granted will be subject to City Council approval.
Award Contract for Newport Coast Fully Automated
Residential Refuse Collection Services
August 14, 2007
Page 4
® Audit Requirements: Should the City conduct an audit to verify tonnage
records, recycling levels, or vehicle records, all costs will be borne by CR &R.
Term: At the end of ten years, there is an option to extend the agreement in five,
one -year increments.
Recommendation
Based on the negotiated service levels listed above, City staff recommends that the City
Council approve the attached contract with CR &R, Inc. The provisions included in this
agreement ensure that Newport Coast residents are provided with exceptional refuse
collection services.
CR &R has provided solid waste collection and material recovery services in Orange,
Los Angeles, San Bernardino, San Diego, and Riverside Counties for approximately 40
years. CR &R currently provides fully automated solid waste and recycling collection
services to several nearby cities, including Costa Mesa, Aliso Viejo, Dana Point, San
Clemente, San Juan Capistrano, and Laguna Niguel, among others. CR &R also
provides residential collection services in the Santa Ana Heights area of the City of
Newport Beach.
Environmental Review:
This project does not require environmental review.
Public Notice:
This agenda item may be noticed according to the Ralph M. Brown Act (72 hours in
advance of the public meeting at which the City Council considers the item).
Award Contract for Newport Coast Fully Automated
Residential Refuse Collection Services
August 14, 2007
Page 5
Funding Availability:
Funding for this agreement was included in the Fiscal Year 2007 -08 budget. The
current cost for Newport Coast collection services, based on the current monthly fee of
$15.03 per home, is $739,536. Based on the bid from CR &R Disposal of $10.89 per
home, staff estimates that the total cost for collection services will be $527,520. This
cost represents a savings of $159,000 this fiscal year, and over $3,100;000' during the
life of the agreement
`15 -year Term
Monthly Cost Per Home Extra Container Fee Total Annual Cost
Current $15.03 $3.42 $739,536
CR &R $10.89 $1.00 $527,520
mane rlarmon
General Services Director
Reviewed by:
aron Harp
Assistant City Attorney
Attachments:
Prepared by:
ox� 'k
Chris Marcarello
Administrative Analyst
(1) Draft Agreement with CR &R, Inc. for Residential Refuse Collection Services
AGREEMENT WITH
CR &R INCORPORATED
FOR RESIDENTIAL SOLID WASTE COLLECTION AND RECYCLING SERVICES
IN NEWPORT COAST
THIS AGREEMENT is made and entered into as of this 14th day of August, 2007, by
and between the CITY OF NEWPORT BEACH, a charter City and municipal
corporation ( "City'), and CR &R Incorporated, a California corporation whose address is
11292 Western Avenue, Stanton, California 90680, ( "Hauler "), and is made with
reference to the following:
RECITALS
A. City is a municipal corporation duly organized and validly existing under the laws
of the State of California with the power to carry on its business as it is now being
conducted under the statutes of the State of California and the Charter of City.
B. On January 1, 2002, City annexed the area referred to as Newport Coast which
is depicted on Exhibit A ( "Newport Coast').
C. City is planning to hire a waste hauler to provide fully automated curbside refuse
collection services for single - family residential ,properties in Newport Coast
( "Project') which will be paid for by the City.
D. The principal member[s] of Hauler for purposes of Project shall be Dean A.
Ruffridge, Senior Vice President.
E. City has solicited and received a proposal from Hauler and desires to retain
Hauler to render residential waste hauling services under the terms and
conditions set forth in this Agreement.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as
follows:
1. TERM
The term of this Agreement shall commence on the above written date, and shall
terminate on the 15t of October 2017, unless terminated earlier as set forth herein.
The term of this Agreement shall automatically be extended for five (5) additional
one (1) year terms (automatic extensions) with the extensions to automatically
commence upon the expiration of the initial term or any extended term, unless the
City notifies Hauler or Hauler notifies City in writing at least one hundred and eighty
(180) days before the end of the initial term or any extended term, of its intent to
terminate this Agreement at the conclusion of the initial term or any extension. For
purpose of this Agreement the term ( "Effective Date ") shall refer to October 1, 2007,
which is the date that waste collection services are to begin under this Agreement.
2. SERVICES TO BE PERFORMED
Hauler shall diligently perform all the services described herein and in the Scope
of Services attached hereto as Exhibit B and incorporated herein by reference
( "Contract Services "). The City may elect to delete certain tasks of the Scope of
Services at its sole discretion.
3. TIME OF PERFORMANCE
Time is of the essence in the performance of services under this Agreement and
Hauler shall perform the services in accordance with the schedule included in
Exhibit B. The failure by Hauler to strictly adhere to the schedule may result in
termination of this Agreement by City.
4. COMPENSATION TO HAULER
A. From the Effective Date, City shall pay Hauler for the Contract Services in
accordance with the provisions of this Section and the Schedule of Billing
Rates attached hereto as Exhibit C and incorporated herein by reference.
Annually, upon the anniversary date of the Effective Date, the billing rates
set forth on the Schedule of Billing Rates shall be adjusted in proportion to
changes in the Consumer Price Index, subject to a three percent (3 %)
maximum increase per year. Such adjustment shall be made by
multiplying the billing rates then in effect by a fraction, the numerator of
which is the value of the Consumer Price Index for the calendar month
three (3) months preceding the calendar month for which such adjustment
is to be made and the denominator of which is the value of the Consumer
Price Index for the same calendar month immediately prior to the Effective
Date. For example, if the adjustment is to occur effective July 1, 2008, the
index to be used for the numerator is the index for the month of April 2008
and the index to be used for the denominator is the index for the month of
April preceding the Effective Date. The "Consumer Price Index" to be
used in such calculation is the Consumer Price Index, All Urban
Consumers (All Items), for the Los Angeles Anaheim Riverside
Metropolitan Area, published by the United States Department of Labor,
Bureau of Labor Statistics (1982 84 = 100). If both an official index and
one or more unofficial indices are published, the official index shall be
used. If said Consumer Price Index is no longer published at the
adjustment date, it shall be constructed by conversion tables included in
such new index. The parties hereto expressly agree that the maximum
yearly increase shall not exceed three percent (3 %). Except as expressly
provided herein or in Exhibit C, the Hauler shall be responsible for all other
costs and expenses related to Hauler's performance of this Agreement
including, but not limited to, the cost of providing additional containers and
fees imposed for disposal regardless of increases in landfill disposal and
recycling facility costs.
Notwithstanding the foregoing, in the event the Orange County Landfill
increases disposal fees and /or Hauler is required by the City to divert more
than forty percent (40 %) of the solid waste collected by Hauler from landfills
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by City, the Hauler may apply to the City for an increase in the disposal
portion of the basic service fee rate, described in Exhibit C, charged to the
City. The Hauler shall supply the City with any and all information and
documentation requested by the City that the City determines is necessary
to analyze the request including, but not limited to, performing an audit and
reviewing /verifying Hauler's landfill records and tonnage reports. Hauler and
City agree that the decision to increase the disposal portion of the basic
service fee rate, described in Exhibit C, charged the City shall be within the
sole discretion of the City and the City shall not be obligated to increase the
amount charged the City.
B. Hauler shall submit invoices for Contract Services provided to City on a
monthly basis and all invoices submitted to the City shall be accompanied
by a monthly report indicating in detail all Contract Services performed.
City shall pay invoices within thirty (30) days after receipt by the City.
Payment shall be deemed made when deposited in the United States
mail, first class postage pre -paid, and addressed to Hauler as specified in
Section entitled "Notices."
5. INCREASE OR DECREASE IN SCOPE OF SERVICES
Hauler shall perform fully automated refuse collection services as requested by
the Contract Administrator, as described herein and as noted on Exhibit B. The
Administrator may give written authorization for additional services up to one
thousand dollars ($1,000) per month.
6. DISPUTES PERTAINING TO PAYMENT FOR WORK
Should any dispute arise respecting whether any delay is excusable, or its
duration, the value of any extra work done, or any work omitted, or any extra
work which Hauler may be required to do, or respecting any payment to Hauler
during the performance of the Agreement, such dispute shall be decided by the
Project Administrator with any appeal to the City Manager. The City Manger's
decision shall be final.
7. REIMBURSEMENT FOR EXPENSES
Except as provided in this Agreement and Exhibit C, Hauler shall not be
reimbursed for any disposal fees or other costs and expenses unless prior written
authorization is obtained from the Project Administrator.
8. LABOR AND PERFORMANCE BONDS
Hauler shall furnish, concurrently with the Effective Date of this Agreement, a
bond or other instrument satisfactory to the Project Administrator in an amount
equal to one hundred percent (100 %) of six months of the contract price /amount
to be paid under this Agreement in any one year as security for the faithful
performance of this Agreement. The Labor and Performance Bond shall remain
in effect throughout the term of this Agreement.
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9. DISPOSAL OF SOLID WASTE
A. Except as expressly provided in this Section; Hauler shall comply with all
recycling and diversion requirements imposed by law, ordinance, or
regulation on the City and /or Hauler. On a quarterly basis, Hauler shall
divert forty percent (40 %) of all solid waste collected by Hauler from
landfills. In no event shall Hauler deposit sixty percent (60 %) or more of
the solid waste collected pursuant to this Agreement at any landfill during
any calendar quarter. In the event new or additional diversion
requirements are imposed by law, ordinance or regulation on City and /or
Hauler, the City shall have the right to require Hauler to divert additional
solid waste from landfills by providing Hauler with ten (10) days written
notice of the new diversion requirements. On or before the 30th day of
the month following the end of the previous calendar month, Hauler shall
provide all documents and information designated by the General
Services Director to prove that Hauler has complied with this subsection,
any applicable law, ordinance, regulation, or condition related to recycling
and diversion of solid waste.
B. Hauler shall dispose of solid waste collected or transported by Hauler only
by taking such solid waste to a State certified /licensed landfill, State
certified /licensed transfer station, State certified /licensed recycling facility
or State certified /licensed materials recovery facility which is lawfully
authorized to accept that specific type of solid waste material. Hauler
shall not dispose of solid waste by depositing it on any land, (except a
permitted facility) whether public or private, or in any river, stream or other
waterway, or in any sanitary sewer or storm drainage system. Nothing in
this Agreement shall be deemed or construed as authorizing Hauler to
operate a landfill, recycling center, or other solid waste disposal facility.
C. All solid waste, in addition to recyclables, collected by Hauler shall
become the property of Hauler upon placement by the customer for
collection. If Hauler violates the terms in Section 9(A) and Section 9(B)
above, Hauler agrees that the City has the future right to direct that solid
waste be delivered to a permitted disposal facility designated by City.
This exercise of "flow control" by the City shall be made upon at least 30
days prior written notice to Hauler, and written notice shall include the
violation(s) prompting the City's action regarding "flow control." Failure to
comply with the recycling /diversion requirements and delivery/disposal of
materials to a certified /licensed facility shall be a material breach of this
Agreement.
D. Hauler shall implement a load check program that includes, at a
minimum, a visual check of all containers to be emptied to protect against
inclusion of hazardous waste and shall prepare a written record of all
hazardous waste discovered during the process. The records shall
comply with all State and Federal Hazardous Waste Regulations, shall be
maintained for the length of the term of the Agreement, and shall be
provided to the City on or before the 15th day of the month following the
end of the previous calendar month.
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10. REPORTS
A. Hauler shall submit to City monthly reports setting forth any complaints
(e.g. written or oral comments received by Hauler expressing
dissatisfaction with Hauler or any services provided by Hauler that relate in
any manner to this Agreement); the total amount (in tons) of solid waste
which Hauler collected in the City of Newport Beach during the reportable
month; the total weight (in tons) of solid waste disposed of by Hauler at
landfills and transfer stations which Hauler collected in the City of
Newport Beach during the reportable month; the total weight and the
weight by material category (in tons) of solid waste disposed of by Hauler
at recycling and materials recovery facilities during the reportable month
which Hauler collected in the City of Newport Beach; the name and
location of all solid waste and recycling facilities where City of Newport
Beach materials were delivered; and such other tonnage or other
information as requested by the General Services Director including, but
not limited to, weigh tickets and recycling records. Such monthly reports
shall be prepared on such form as required by the General Services
Director. In addition, on a quarterly basis, the Hauler shall submit to the
City any equipment, terminal safety, employee safety and inspection
reports, citations, records and other documents for all Hauler's operations
and activities that relate in any way to this Agreement including, but not
limited to, periodic California Highway Patrol biennial terminal inspection
reports; vehicle citations; California Highway Patrol Incident reports;
citations issued to drivers /operators; other citations issued to the Hauler
or its employees; California Occupational Safety and Health
Administration 300 reports; and Lead Environmental Agency
inspection /compliance reports. Each quarterly report and accompanying
reports /citations shall be submitted on or before the 15th day of the month
following the end of the quarter (i.e. report due January 15 for first quarter
after the Effective Date) and submitted to:
General Services Director
City of Newport Beach
3300 Newport Blvd.
Newport Beach, CA 92663
B. Hauler shall comply with all recycling and diversion requirements imposed
by law, ordinance, or regulation on the City. Monthly reports stating the
total amount (in tons) of solid waste which Hauler landfilled, recycled and
collected should accurately reflect a forty (40 %) diversion rate as required
by the City. At the end of each quarter, monthly reports will be evaluated
for AB939 compliance. Failure to comply with the recycling and diversion
requirements shall be a material breach of this Agreement.
11. VEHICLES, EQUIPMENT AND SERVICES
A. Any and all containers provided to customers of Hauler for storage,
collection or transportation of solid wastes shall meet the requirements
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designated by the General Services Director as well as State of California
minimum standards for solid waste handling established under Public
Resources Code Section 43020 and applicable health requirements. The
General Services Director shall have the right to approve the color of
containers, manufacturer of containers, and lettering and decals used on
containers. Hauler shall repair or replace any container which is
damaged, broken, lost or stolen with a container approved by the General
Services Director at no cost to the City.
B. All containers and all vehicles used by Hauler in the performance of solid
waste handling services shall be marked with Hauler's name and
telephone number in letters which are easily read by the general public.
All solid waste containers used in the performance of this Agreement shall
be kept clean and in good repair to the satisfaction of the General
Services Director.
C. Equipment.
1. The vehicles used pursuant to this Agreement shall have the name
of the Hauler, the Hauler's local telephone number, and a unique vehicle
identification number for each vehicle prominently displayed on all
collection vehicles. The vehicles shall also display a statement as to the
type of alternative fuel being used.
2. The Hauler shall use alternative fuel vehicles approved by the
South Coast Air Quality Management District for fully automated refuse
collection services. Vehicles shall meet all requirements specified per
AQMD Rule 1193. Vehicles used for collection services must be fully
automated side - loading refuse trucks, using a fully mechanized arm to
pick up and dump automated waste collection containers. Drivers should
not exit the vehicle to assist with securing the containers to, or lifting the
containers into, the refuse collection truck. Hauler shall, at all times,
provide such number of vehicles and such equipment as will be adequate
for the collection, transportation and disposal services which it is
authorized to provide under this Agreement. All vehicles utilized by Hauler
in the performance of this Agreement shall be registered with the
California Department of Motor Vehicles. All vehicles shall pass the
required periodic California Highway Patrol biennial inspection of the
terminals ( "BIT "). Within fifteen (15) days of the BIT inspection, Hauler
shall provide records from all of the terminal(s) responsible for the
maintenance and repair of equipment used in the City. All vehicles and
equipment used by Hauler in the performance of this Agreement shall be
subject to inspection by the City upon twenty -four (24) hours notice by the
General Services Director. All vehicles shall be properly maintained, kept
clean and in good repair, and shall be uniformly painted. All drivers
employed by Hauler and operating equipment in the City shall be properly
licensed for the class of vehicle they drive, enrolled in the Department of
Motor Vehicles Employee Pull Notice (EPN) program, and abide by all
State and federal regulations for driver hours and alcohol and controlled
substances testing.
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3. Each vehicle shall be so constructed and used in a manner so that
no rubbish, garbage, debris, oil, grease or other material will blow, fall, or
leak out of the vehicle. All solid waste shall be transported by means of
vehicles which are covered in such a manner as to securely contain all
solid waste and to prevent such solid waste from projecting, blowing,
falling or leaking out of the vehicles. Any solid waste dropped or spilled in
collection, transfer or transportation shall be immediately cleaned up by
Hauler. A broom and a shovel shall be carried at all times on each vehicle
for this purpose. Should a hydraulic or other type of material spill occur as
a result of collection services, Hauler shall notify the City within 1 hour.
Hauler shall not transfer loads from one vehicle to another on any public
street or private roadway, unless it is necessary to do so because of
mechanical failure or damage to a collection vehicle which renders it
inoperable and the vehicle cannot be towed. In addition, each collection
vehicle shall be equipped with trash bags, masking tape and notice of
non - collection tags for the purpose of separating hazardous waste for
return to the generator. A communications device such as a two -way
radio or a cellular telephone shall also be maintained on each vehicle at all
times.
4. Hauler shall not store any vehicle or equipment on any public
street, public right -of -way or other public property in the City of Newport
Beach without obtaining a Temporary Street Closure Permit from the
Public Works Department and prior written consent of the General
Services Director.
5. Should the General Services Director at any time give written
notification to Hauler that any vehicle does not comply with the standards
hereunder, the vehicle shall be promptly removed from service by Hauler
and not used again until inspected and authorized in writing by the General
Services Director.
6. All vehicles used in performance of this Agreement shall be
maintained and operated in conformance with all applicable laws,, statutes,
rules and regulations. In performance of this Agreement, the issuance of
four (4) or more vehicle, driver /operator or other citations that relate in any
way to this Agreement within a 12 month period shall be deemed to be
breach of this Agreement.
D. Quarterly reports setting forth information regarding Hauler's vehicles and
equipment shall be prepared on such form as required by the General
Services Director. Each quarterly report shall be submitted on or before the
15th day of the month following the end of the previous calendar quarter.
E. Litter Abatement: Hauler shall use due care to prevent any waste material
collected pursuant to this Agreement from being spilled or scattered during
the collection or transportation process. If any waste material is spilled,
hauler shall promptly clean up all spilled materials whether on private or
public property. Hauler shall clean up existing litter in the immediate vicinity
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of any collection container (including the areas on private and public
property where collection containers are delivered for collection) whether or
not Hauler has caused the litter.
12. ADMINISTRATION
This Agreement will be administered by the General Services Department.
The General Services Director, or his designee, shall be the Project
Administrator and shall have the authority to act for City under this Agreement.
The Project Administrator or his /her authorized representative shall represent
City in all matters pertaining to the services to be rendered pursuant to this
Agreement.
13. CITY'S RESPONSIBILITIES
To assist Hauler in the execution of its responsibilities under this Agreement, City
agrees to, where applicable, provide access to and upon request of Hauler, one
copy of all existing relevant information on file at City. City will provide all such
materials in a timely manner so as not to cause delays in Hauler's work
schedule.
14. STANDARD OF CARE, WORKMANSHIP, SUPERVISION
A. The Hauler shall provide a work force sufficient to perform the Contract
Services and all members of the work force shall be hired in compliance
with State and Federal law.
B. All Contract Services shall be performed by competent and trained
employees. Hauler represents that it possesses the professional and
technical personnel required to perform the services required by this
Agreement, and that it will perform all services in a manner commensurate
with community professional standards. All services shall be performed
by qualified and trained personnel who are not employed by City, nor have
any contractual relationship with City. Hauler hereby certifies that all work
performed under this Agreement will conform to the requirements of this
Agreement and all applicable federal, state and local laws and the
professional standard of care.
C. The work force shall include thoroughly skilled, experienced, and
competent supervisors who shall be responsible for adherence to the
terms of this Agreement by directly overseeing the Contract Services
operations. All supervisory personnel must be able to communicate
effectively in English (both orally and in writing). An order given to
supervisory personnel shall be deemed delivered to the Hauler. Hauler
shall provide City with a designated supervisors name(s) and shall notify
the City of the name of any successor within ten (10) days of change in
supervision.
D. All Hauler personnel working in Newport Coast shall be neat in
appearance and in uniform.
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E. Hauler represents and warrants to City that it has, shall obtain, and shall
keep in full force in effect during the term hereof, at its sole cost and
expense, all licenses, permits, qualifications, insurance and approvals of
whatsoever nature that is legally required of Hauler to practice its
profession. Hauler shall maintain a City of Newport Beach business
license during the term of this Agreement.
F. Whenever Hauler has knowledge that any actual or potential labor dispute
is delaying or threatens to delay the timely performance of this Agreement,
Hauler shall immediately give notice to the City and any and all relevant
information. In the event of a labor dispute which delays or impacts the
performance of Contract Services, the City reserves the right to use its
own forces or to contract with other haulers to perform the Contract
Services. The City and Hauler agree that it will be deemed a breach of
this Agreement if Hauler cannot provide full Contract Services seven (7)
days after services have been impacted or delayed as a result of a labor
dispute.
G. Hauler shall attend meetings, special events and public meetings as
requested by the City. Hauler shall provide all necessary and appropriate
personnel to attend each meeting and any requested promotional material
so that the topics on the agenda can be addressed fully and completely.
15. CUSTOMER PRIVACY
Hauler shall strictly observe and protect t he rights of privacy of customers.
Information identifying the contents and composition of a customer's containers
shall not be revealed to any person, governmental unit, agency or company,
unless authorized by the customer or by order of a court of law, or by statute.
This provision shall not be construed to prohibit Hauler from preparing,
participating in, or assisting in the preparation of solid waste characterization
studies, waste stream analyses that may be required by any law or regulation, in
preparing or assisting in the preparation of any reports /audits required pursuant
to this Agreement, or providing any information required to be provided to City by
other provisions of this Agreement or that is necessary for City to comply with
any law or regulation. Hauler shall not market or distribute customer mailing lists
to any party except the City.
16. CUSTOMER SERVICE SURVEYS
The Hauler shall conduct customer service studies to help the City evaluate
performance. At the completion of 6 (six) months from the Effective Date, and
every year thereafter, the City shall provide a list of questions that shall be used
in the customer service survey. At the Hauler's expense, the Hauler will prepare
and mail a survey form /card to each Newport Coast residence serviced by
Hauler pursuant to this Agreement. All survey forms and cards will be mailed
directly from the resident to the City at the Hauler's expense, via business reply
mail. The City shall share the results of the survey with the Hauler.
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17. INDEPENDENT CONTRACTOR
It is understood that City retains Hauler on an independent contractor basis and
Hauler is not an agent or employee of City. The manner and means of conducting
the work are under the control of Hauler, except to the extent they are limited by
statute, rule or regulation and the express terms of this Agreement. Nothing in this
Agreement shall be deemed to constitute approval for Hauler or any of Hauler's
employees or agents, to be the agents or employees of City. Hauler shall have the
responsibility for and control over the means of performing the work, provided that
Hauler is in compliance with the terms of this Agreement.
18. COOPERATION
Hauler agrees to work closely and cooperate fully with 'City's designated Project
Administrator and any other agencies that may have jurisdiction or interest in the
work to be performed. City agrees to cooperate with the Hauler on the Project.
19. CITY POLICY
Hauler shall discuss and review all matters relating to policy and Project direction
with City's Project Administrator in advance of all critical decision points in order
to ensure the Project proceeds in a manner consistent with City goals and
policies.
20. HAZARDOUS WASTE
A. General. Hauler shall be aware of, and comply with, all laws and
regulations relating to the handling and transportation of Hazardous
Substances, as defined in Section 22, including those requiring training
and documentation. If Hauler observes any substances which it believes
to contain a Hazardous Substance within the City, including but not
limited to in containers designed for waste Hauler shall not collect such
Hazardous Substance but shall immediately notify the appropriate regulatory
agencies and the City.
B. Notice to Customers. Hauler shall notify all Customers at least once a
year in writing by mail of: (i) the prohibition against the Disposal of
Hazardous Substance in authorized containers and (ii) the obligation of
each customer to provide for the proper handling and disposition of
Hazardous Substance. To the extent that Hauler has actual knowledge of
the existence of such Hazardous Substance in a container placed for
collection, Hauler shall not collect such container. Hauler shall, prior to
leaving the location where such Hazardous Substance has been
observed, leave a tag at least 2" x 6" which informs the customer why the
collection was not made and lists the telephone number for the Orange
County Department of Environmental Management.
C. Hauler to Segregate and Dispose. In the event Hauler inadvertently
collects any Hazardous Substance and during the course of
transportation and disposition becomes aware that it has collected such
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Hazardous Substance, Hauler shall segregate Hazardous Substance, and
shall arrange for its transport and Disposal to a properly permitted
Recycling, treatment or disposal facility of Hauler's choosing at Hauler's
sole expense. Hauler shall be solely responsible for the transport and
disposition of all Hazardous Substance that is collected by the Hauler.
Hauler will cooperate with City attempts to locate and collect the costs of
such transport and disposition from the responsible customer.
D. Operating Procedures and Employee Training. Hauler shall establish,
implement and maintain written operating procedures designed to ensure
Hauler's utilization of techniques generally accepted in the waste hauling
industry for cities of the size and nature of the City of Newport Beach, to
handle and dispose of Hazardous Substance and its compliance with the
provisions of this Section. Hauler shall establish, implement and maintain
an employee training program and shall ensure that employees
responsible for the identification of Hazardous Substance are fully trained.
Hauler shall maintain documentation which describes the training
received by its employees.
21. INSURANCE REQUIREMENTS
Without limiting Hauler's indemnification of City, Hauler shall obtain, provide and
maintain at its own expense during the term of this Agreement, a policy or
policies of liability insurance of the type and amounts described below and in a
form satisfactory to City.
A. Certificates of Insurance. Hauler shall provide certificates of insurance
with original endorsements to City as evidence of the insurance coverage
required herein. Insurance certificates must be approved by City's Risk
Manager prior to commencement of the Agreement. Current certification
of insurance shall be kept on file with City at all times during the term of
this Agreement.
B. Signature. A person authorized by the insurer to bind coverage on its
behalf shall sign certification of all required policies.
C. Acceptable Insurers. All insurance policies shall be issued by an
insurance company currently authorized by the Insurance Commissioner
to transact business of insurance in the State of California, with an
assigned policyholders' Rating of A (or higher) and Financial Size
Category Class VII (or larger) in accordance with the latest edition of
Best's Key Rating Guide, unless otherwise approved by the City's Risk
Manager.
D. Coverage Requirements.
1. Workers' Compensation Coverage. Hauler shall maintain Workers'
Compensation Insurance and one million dollars ($1,000,000) Employer's
Liability Insurance for his or her employees in accordance with the laws of
the State of California. Any notice of cancellation or non- renewal of all
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Workers' Compensation policies must be received by City at least thirty
(30) calendar days (10 calendar days written notice of non- payment of
premium) prior to such change. The insurer shall agree to waive all rights
of subrogation against City, its officers, agents, employees and volunteers
for losses arising from work performed by Hauler that relates in any way
to this Agreement.
2. General Liability Coverage. Hauler shall maintain commercial
general liability insurance in an amount not less than two million dollars
($2,000,000) per occurrence for bodily injury, personal injury, and
property damage, including without limitation, contractual liability. If
commercial general liability insurance or other form with a general
aggregate limit is used, either the general aggregate limit shall apply
separately to the work to be performed under this Agreement, or the
general aggregate limit shall be at least twice the required occurrence
limit.
3. Automobile Liability Coverage. Hauler shall maintain automobile
insurance covering bodily injury and property damage for all activities of
the Hauler arising out of or in connection with work to be performed under
this Agreement, including coverage for any owned, hired, non -owned or
rented vehicles, in an amount not less than five million dollars
($5,000,000) combined single limit for each occurrence.
4. Pollution Liability Coverage. Hauler shall maintain Hauler's
environmental liability insurance with limits in an amount of not less than
One Million Dollars ($1,000,000) per occurrence and annual aggregate
covering claims for on -site, under -site, or off -site bodily injury and
property damage and regulatory fines as a result of pollution conditions
arising out of its operations under this Agreement.
E. Endorsements. Each general liability, automobile liability and pollution
liability insurance policy shall be endorsed with the following specific
language:
1. The City, its elected or appointed officers, officials, employees,
agents and volunteers are to be covered as additional insureds with
respect to liability arising out of work performed by or on behalf of the
Hauler.
2. This policy shall be considered primary insurance as respects to
City, its elected or appointed officers, officials, employees, agents and
volunteers as respects to all claims, losses, or liability arising directly or
indirectly from the Hauler's operations or services provided to City. Any
insurance maintained by City, including any self- insured retention City
may have, shall be considered excess insurance only and not contributory
with the insurance provided hereunder.
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3. This insurance shall act for each insured and additional insured as
though a separate policy had been written for each, except with respect to
the limits of liability of the insuring company.
4. The insurer waives all rights of subrogation against City, its elected
or appointed officers, officials, employees, agents and volunteers.
5. Any failure to comply with reporting provisions of the policies shall
not affect coverage provided to City, its elected or appointed officers,
officials, employees, agents or volunteers.
6. The insurance provided by this policy shall not be suspended,
voided, canceled, or reduced in coverage or in limits, by either party
except after thirty (30) calendar days (10 calendar days written notice of
non - payment of premium) written notice has been received by City.
F. Timely Notice of Claims. Hauler shall give City prompt and timely notice
of claim(s) made or suit instituted arising out of or resulting from Hauler's
performance under this Agreement.
G. Additional Insurance. Hauler shall also procure and maintain, at its own
cost and expense, any additional kinds of insurance, which in its own
judgment may be necessary for its proper protection and prosecution of the
work.
22. RESPONSIBILITY FOR DAMAGES AND INJURY /INDEMNIFICATION
A. Hauler Responsibility. Hauler shall be responsible for any damages
caused as a result of Haulers acts or omissions including, but not limited
to injuries to or death of any person or damage to public and /or private
property and damages public improvements as a result of Haulers
placement and retrieval of the solid waste containers.
1. City shall refer complaints about damage to private property,
including common areas in common -area subdivisions, to Hauler. Hauler
shall promptly repair, or arrange for the repair of, all damage to private
property caused by its employees at Hauler's sole expense.
2. Hauler shall use commercially reasonable efforts to prevent
damage to all streets over which its collection equipment may be
operated, and Hauler shall obtain all required approvals for operation of
its Collection vehicles on private streets.
3. Hauler shall use commercially reasonable efforts to prevent spills of
fuel, fluids (such as oil, hydraulic fluid, brake fluid, etc.) on streets, and if
such a spill occurs, Hauler shall within 1 hour notify the City (including the
Director of General Services or his /her designee) and all proper
regulatory authorities of said spill and release of fluids, and shall clean, at
Hauler's expense, the spilled fluids in coordination with, and to the
satisfaction of, City and applicable regulatory agencies. Upon a release of
13
such fluids, the driver shall immediately park the vehicle and it shall
remain parked until the leak is repaired. In such event Hauler shall not
park the leaking vehicle within two hundred (200) feet of a storm drain
and shall utilize absorbent, sand bags or other appropriate means to
prevent leaking fluids from entering storm drains. In the event of any type
of spill or other emergency, Hauler shall be responsible for securing the
immediate safety of the vehicle driver, all other employees of Hauler and
all persons and property in the surrounding vicinity.
B. General Indemnification. Hauler shall indemnify, hold harmless, and
defend City, and each of its past, present and future elected officials,
officers, employees, agents, consultants, volunteers, affiliates, assignees,
representatives, attorneys, subsidiaries, and affiliated entities and their
respective successors, heirs and assigns (collectively, "Indemnified
Parties ") for, from and against any costs, expenses, damages, and
losses, including actual attorneys fees ( "Losses ") of any kind or character
to any person or property arising directly or indirectly from or caused by
any of the following: (i) any act or omission of Hauler or its respective
officers, directors, shareholder members, partners, employees, agents,
contractors, subcontractors, suppliers, representatives and affiliates
( "Hauler Representatives "); (ii) Hauler's or Hauler Representative's
activities; (iii) any accident or casualty within or arising out of the
services /work performed under the Agreement; (iv) any violation or
alleged violation of any law, ordinance or statute now or hereafter enacted
arising out of services /work performed pursuant to the Agreement; (v) the
negligence or willful misconduct of Hauler or any of Hauler
Representatives in the performance of the services /work under the
Agreement; and (vi) any breach of the Agreement.
Hauler shall not be required to indemnify, hold harmless and defend the
Indemnified Parties from the sole negligence, active negligence or willful
misconduct of the Indemnified Parties. Nothing in this indemnity shall be
construed as authorizing any award of attorneys fees in any action on or
to enforce the terms of this Agreement. This indemnity shall apply to all
claims and liability regardless of whether any insurance policies are
applicable. The policy limits do not act as a limitation upon the amount of
indemnification to be provided by the Hauler.
C. Hazardous Substances Indemnification. Hauler shall indemnify the
Indemnified Parties from and against all claims, actual damages
including, but not limited to, special and consequential damages, natural
resource damage, punitive damages, injuries, costs, response,
remediation, and removal costs, losses, demands, debts, liens, liabilities,
causes of action, suits, legal or administrative proceedings, interest, fines,
charges, penalties and expenses attorneys' and expert witness fees and
costs incurred in connection with defending against any of the foregoing
or in enforcing this indemnity of any kind whatsoever paid, incurred or
suffered by, or asserted against, the Indemnified Parties or Hauler arising
directly or indirectly from or caused by any of the following: (i) the violation
of any Environmental Laws or the failure to clean up and mitigate the
14
consequences of the spill or release of any Hazardous Substance; and (ii)
Hauler's activities under this Agreement concerning any Hazardous
Substance at any place where Hauler stores or disposes of solid or
hazardous waste pursuant to this Agreement, or preceding Agreements
between City and Hauler. The foregoing indemnity is intended to operate
as an agreement pursuant to the Comprehensive Environmental
Response, Compensation and Liability Act 42. U.S.C. Section 9607(e)
and any amendments thereto; California Health and Safety Code Section
25364, to insure, protect, hold harmless, and indemnify City from liability.
As used herein, the term "Environmental Laws" shall mean "any and all
present and future federal, state or local laws (whether common law,
statute, rule, regulation or otherwise), permits, orders and any other
requirements of Governmental Authorities relating to the environment or
any "Hazardous Substance" or "Hazardous Substance Activity" (as
defined herein) (including, without limitation, the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 (42
U.S.C. §§ 9601 et seq.) as amended from time to time and the applicable
provisions of the California Health and Safety Code and California Water
Code).
As used herein, the term "Hazardous Substance' shall mean "any (a)
chemical, compound, material, mixture or substance that is now or
hereinafter defined or listed in, or otherwise classified pursuant to any
Environmental Law as a "hazardous substance ", "hazardous material,"
"hazardous waste," "extremely hazardous waste," "infectious waste,"
"toxic waste," "toxic pollutant," or any other formulation intended to define,
list or classify substances by reason of deleterious properties or affect
and (b) petroleum, petroleum by- products, natural gas, natural gas
liquids; liquefied natural gas, synthetic gas usable for fuel (or mixtures of
natural gas in such synthetic gas), ash, municipal solid waste, steam;
drilling fluids, produced waters and other wastes associated with the
exploration, development and production of crude oil, natural gas or
geothermal resources."
D. AB939 Indemnification. Hauler agrees to meet the diversion
requirements set forth in Section 9A of this Agreement and all
requirements of City's Source Reduction and Recycling Element as to the
portion of the solid waste stream handled by Hauler. Hauler agrees to
protect, defend, indemnify, and hold City harmless against all fines or
penalties imposed by the California Integrated Waste Management
Board, or other entity, arising from the failure of Hauler to meet the
diversion requirements set forth in Section 9 A of this Agreement and the
Integrated Waste Management Act diversion requirements with respect to
the portion of the solid waste stream collected by Hauler.
E. Notice. City agrees to give notice to Hauler when the City receives a
claim for damages or other liability for which Hauler has provided
indemnification under this Section.
15
23. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS
Except as specifically authorized under this Agreement, the services to be
provided under this Agreement shall not be assigned, transferred contracted or
subcontracted out without the prior written approval of City. Any of the following
shall be construed as an assignment: the sale, assignment, transfer or other
disposition of any of the issued and outstanding capital stock of Hauler, or of the
interest of any general partner or joint venturer or syndicate member or cotenant
if Hauler is a partnership or joint- venture or syndicate or cotenancy, which shall
result in changing the control of Hauler. Control means fifty percent (50 %) or
more of the voting power, or twenty -five percent (25 %) or more of the assets of
the corporation, partnership or joint- venture.
24. SUBCONTRACTING
The parties recognize that a substantial inducement to City for entering into this
Agreement is the professional reputation, experience and competence of Hauler.
Assignments of any or all rights, duties or obligations of the Hauler under this
Agreement will be permitted only with the express written consent of City. Hauler
shall not subcontract any portion of the work to be performed under this
Agreement without the prior written authorization of City.
25. CONFIDENTIALITY
All documents, including drafts, preliminary drawings or plans, notes and
communications that result from the services in this Agreement, shall be kept
confidential unless City authorizes in writing the release of information..
26. INTELLECTUAL PROPERTY INDEMNITY
The Hauler shall defend and indemnify City, its agents, officers, representatives
and employees against any and all liability, including costs, for infringement of any
United States' letters patent, trademark, or copyright infringement.
27. RECORDS
A. Hauler shall maintain a complete and accurate books and other business
records with respect to the costs incurred under this Agreement including
any labor and disposal costs incurred under this Agreement, any Contract
Services performed under this Agreement, and any expenditures and /or
disbursements charged to City, for a minimum period of three (3) years, or
for any longer period required by law, from the date of final payment to
Hauler under this Agreement. All such records shall be clearly identifiable.
All Hauler's books and other business records, or such part as may be used
in performance of this Agreement, shall be subject to inspection and audit by
authorized City representative during regular business hours upon two (2)
business days notice. Hauler shall allow inspection of all work, data, records,
proceedings and activities related to the Agreement for a period of three (3)
years from the date of final payment to Hauler under this Agreement.
16
The Hauler shall be responsible for all audit and other costs and expenses
incurred that relates in any way to audits performed by the City to verify that
Hauler is in compliance with the terms and conditions of this Agreement
including, but not limited to, the auditing of facility recycling records,
diversion statistics, landfill rate increases, vehicle records, and safety
records.
B. No report, information or other data given to or prepared or assembled by
hauler pursuant to this Agreement may be made available to any individual
or organization without prior approval by City unless such disclosure is
required by law or court proceedings.
28. WITHHOLDINGS
City may withhold payment to Hauler of any disputed sums until satisfaction of
the dispute with respect to such payment provided that City notifies Hauler in
writing as soon as possible specifying the reason for such withholding. Such
withholding shall not be deemed to constitute a failure to pay according to the
terms of this Agreement. Hauler shall not discontinue work as a result of such
withholding. Hauler shall have an immediate right to appeal to the City Manager
or his /her designee with respect to such disputed sums. Hauler shall be entitled
to receive interest on any withheld sums at the rate of return that City earned on
its investments during the time period, from the date of withholding of any
amounts found to have been improperly withheld.
29. CITY'S RIGHT TO EMPLOY OTHER HAULERS
City reserves the right to employ other Haulers in connection with the Project if
Hauler breaches any term or condition of this Agreement.
30. CONFLICTS OF INTEREST
The Hauler or its employees may be subject to the provisions of the California
Political Reform Act of 1974 (the "Act'), which (1) requires such persons to
disclose any financial interest that may foreseeably be materially affected by the
work performed under this Agreement, and (2) prohibits such persons from
making, or participating in making, decisions that will foreseeably financially
affect such interest.
If subject to the Act, Hauler shall conform to all requirements of the Act. Failure to
do so constitutes a material breach and is grounds for immediate termination of
this Agreement by City. Hauler shall indemnify and hold harmless City for any
and all claims for damages resulting from Hauler's violation of this Section.
31. NOTICES
All notices, demands, requests or approvals to be given under the terms of this
Agreement shall be given in writing, and conclusively shall be deemed served
when delivered personally, or on the third business day after the deposit thereof
in the United States mail, postage prepaid, first -class mail, addressed as
17
hereinafter provided. All notices, demands, requests or approvals from Hauler to
City shall be addressed to City at:
Attn: Mark Harmon
General Services Department
City of Newport Beach
3300 Newport Boulevard
Newport Beach, CA, 92663
Phone: 949 - 644 -3055 Fax: 949- 650 -0747
All notices, demands, requests or approvals from CITY to Hauler shall be
addressed to Hauler at:
Attention: Dean A. Ruffridge, Senior Vice President
CR &R Incorporated
11292 Western Avenue
Stanton, California 90680
Phone: (714) 826 -9049 Fax: (714) 890 -6347
32. LIQUIDATED DAMAGES
Failure of the Hauler to strictly comply with each and every term and condition of
this Agreement will result in damages being sustained by the City. Such
damages are, and will continue to be, impracticable and extremely difficult to
determine. Hauler and City agree that any violations of the terms and conditions
of this Agreement shall be corrected within the time frame set forth by the City, in
its sole discretion, in the City's written Notice of Deficiency. For each and every
violation noted in the Notice of Deficiency that is not corrected within the time
frame set forth in the Notice of Deficiency, Hauler shall pay to the City, or have
withheld from moneys due it, the sum of $250 per calendar day. Execution of
the contract shall constitute agreement by the Hauler and City that $250 per
calendar day is the minimum value of the costs and actual damage caused by
failure of the Hauler to comply with any term or condition of this Agreement, that
such sum is liquidated damages and shall not be construed as a penalty, and
that such sum may be deducted from payments due the Hauler.
33. DEFAULT /TERMINATION
In the event that either party fails or refuses to perform any of the provisions of this
Agreement at the time and in the manner required, that party shall be deemed in
default in the performance of this Agreement. If such default is not cured within a
period of ten (10) calendar days, or if more than ten (10) calendar days are
reasonably required to cure the default and the defaulting party fails to give
adequate assurance of due performance within ten (10) calendar days after receipt
of written notice of default, specifying the nature of such default and the steps
necessary to cure such default, and thereafter diligently take steps to cure the
default, the non - defaulting party may terminate the Agreement forthwith by giving to
the defaulting party written notice thereof.
in
Notwithstanding the above provisions, City shall have the right, at its sole
discretion and without cause, of terminating this Agreement at any time by giving
one hundred eighty (180) calendar days prior written notice to Hauler. In the
event of termination under this Section, City shall pay Hauler for services
satisfactorily performed and costs incurred up to the effective date of termination
for which Hauler has not been previously paid. On the effective date of
termination, Hauler shall deliver to City all reports, documents and other
information developed or accumulated in the performance of this Agreement.
34. COMPLIANCE WITH ALL LAWS
Hauler shall at its own cost and expense comply with all statutes, ordinances,
regulations and requirements of all governmental entities, including federal, state,
county or municipal, whether now in force or hereinafter enacted. Hauler shall
conform to all applicable provisions of State and Federal law including, applicable
provisions of the California Labor Code and the Federal Fair Labor Standards
Act, In addition, all work performed by Hauler shall conform to applicable City,
county, state and federal laws, rules, regulations and permit requirements and be
subject to approval of the Project Administrator and City.
35. WAIVER
A waiver by either party of any breach, of any term, covenant or condition
contained herein shall not be deemed to be a waiver of any subsequent breach
of the same or any other term, covenant or condition contained herein, whether
of the same or a different character.
36. INTEGRATED CONTRACT
This Agreement represents the full and complete understanding of every kind or
nature whatsoever between the parties hereto, and all preliminary negotiations
and agreements of whatsoever kind or nature are merged herein. No verbal
agreement or implied covenant shall be held to vary the provisions herein.
37. CONFLICTS OR INCONSISTENCIES
In the event there are any conflicts or inconsistencies between this Agreement and
the Scope of Services or any other attachments attached hereto, the terms of this
Agreement shall govern.
38. INTERPRETATION
The terms of this Agreement shall be construed in accordance with the meaning
of the language used and shall not be construed for or against either party by
reason of the authorship of the Agreement or any other rule of construction which
might otherwise apply.
19
39. AMENDMENTS
This Agreement may be modified or amended only by a written document executed
by both Hauler and City and approved as to form by the City Attorney.
40. SEVERABILITY
If any term or portion of this Agreement is held to be invalid, illegal, or otherwise
unenforceable by a court of competent jurisdiction, the remaining provisions of this
Agreement shall continue in full force and effect.
41. CONTROLLING LAW AND VENUE
The laws of the State of California shall govern this Agreement and all matters
relating to it and any action brought relating to this Agreement shall be adjudicated
in a court of competent jurisdiction in the County of Orange.
42. EQUAL OPPORTUNITY EMPLOYMENT
Hauler represents that it is an equal opportunity employer and it shall not
discriminate against any subcontractor, employee or applicant for employment
because of race, religion, color, national origin, handicap, ancestry, sex or age.
20
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on
the day and year first written above..
APPROVED AS TO FORM:
By:
Aaron C. Harp, Assistant City Attorney
for the City of Newport Beach
ATTEST:
In
LaVonne Harkless,
City Clerk
CITY OF NEWPORT BEACH,
A Municipal Corporation
By:
Mayor Steven Rosansky
for the City of Newport Beach
HAULER:
(Corporate Officer)
Title:
Print Name:
By:_
Title:
(Financial Officer)
Print Name:
Attachments: Exhibit A — Newport Coast Map
Exhibit 6 - Scope of Services
Exhibit C — Schedule of Billing Rates
21
Exhibit B
Refuse Contract Services
1.) Within 10 calendar days of the execution of this Agreement, Hauler shall
develop a detailed Implementation Plan to be approved by the City which
shall set forth the steps Hauler will take, and the schedule on which Hauler
will take them, to prepare for commencement of collection operations as
provided in the Agreement. The Implementation Plan shall set forth
Hauler's schedule (shown on a week -by -week basis) for preparing
customer relations materials including, but not limited to, a written
notification of transition of services mailer which is to be mailed by Hauler
at Hauler's cost and expense at least 30 days prior to the transition of
services to Hauler and distributing new containers to all customers.
Hauler shall bear all costs and expenses associated with preparing the
Implementation Plan and notifying customers regarding the transition of
services to Hauler. The City and Hauler agree that Hauler may use Los
Trancos Canyon View Park (Lower) parking lot from September _, 2007
to September _, 2007 as a staging area for assembly and distribution of
containers.
2.) Hauler shall provide weekly residential curbside refuse collection,
recycling and disposal services to single- family residences in the Newport
Coast Area annexed on January 1, 2002 by the City as depicted on
Exhibit A beginning October 1, 2007.
3.) The Hauler will handle all resident inquiries or complaints of service in an
expeditious manner.
4.) The Hauler shall provide a bulky item pickup twice per year for each
single - family residence with a limit of 4 items per request, at no cost to the
City. Bulk Item collection requests shall be collected within 1 -week of call
and scheduled for the same day as refuse and recycling collection.
5.) The Hauler shall provide fully automated solid waste and recyclable
material containers for residential customers at no additional cost to the
City. The automated solid waste container will have suitable handles and
wheels, tight - fitting covers for holding garbage without leakage or escape
of odors; and be constructed of watertight metal or plastic. All refuse and
recycling containers shall be 90 gallons, unless the resident requests a
smaller size. If a customer requests a smaller size container, the smaller
size container shall be provided within fourteen (14) calendar days. The
minimum size of the containers shall be 35 gallons. The City shall not be
charged by Hauler for any cost or expense related in any way to providing
the containers, for changing the size of the containers, and/or for repairing
or replacing any container which is damaged, broken, lost or stolen.
6.) The weekly basic service will consist of providing service for two individual
automated style containers, one for refuse and one for recyclable
materials, and all collection, disposal and other services related in any
way thereto. At the request of the residential customer, Hauler shall
provide an additional recyclable container and, on a weekly basis, all
collection, disposal and other services related in any way thereto at no
additional cost to the City.
7.) If requested by any residential customer serviced by this Agreement and
approved by the City in writing, Hauler shall provide an additional refuse
container and, on a weekly basis, all collection, disposal and other
services related in any way thereto. Subject to the limitations set forth in
this Section, City agrees to pay the cost of services related to the one
additional refuse container and services provided to residential customers
in the amount set forth in Exhibit C, Section 2. Hauler and City agree that
in no event shall the total number of additional refuse containers for which
the City is to incur any charges, costs or expense including, but not limited
to, costs and expenses associated with providing the extra containers or
service related thereto, exceed ten percent (10 %) of the number of
residential accounts in the Newport Coast Route subject to this Agreement
(e.g. if there are currently 4,000 residences in the Newport Coast Route,
the maximum number of additional containers that the City may be
charged for is 400 containers.) Hauler shall bear all costs and expenses
associated with providing additional containers or service in excess of the
ten percent (10 %) cap.
8.) Collection schedule will remain the same as existing schedule unless
agreed upon between City and Hauler in writing. The Hauler will collect
solid waste and recyclable materials at intervals not less than once per
week. Collection of solid wastes and recyclable materials may not
commence earlier than 7:00 a.m. and will stop no later than 6:30 p.m.
each collection day. The collection days for Newport Coast are currently
done Monday, Tuesday, Wednesday and Friday and will not be changed
without City approval. In no event shall the City approve a request to
collect on Saturday or Sunday unless authorized by the City's General
Services Director. No change to the current schedule will be considered
with less than 60 days notice to the City. The City shall only make
changes to the existing schedule if the City, in its sole discretion,
determines that the proposed change in the schedule increases the level
of service or has no impact on the level of service being provided.
9.) Hauler shall provide curbside collection of Christmas trees on the first two
regularly scheduled collection days for each home after Christmas Day at
no cost to the City.
10.) When notified of a missed pick -up, Hauler shall collect all containers
missed by 5:00 P.M. of the following business day.
11.) Hauler shall use due care when handling containers. Containers shall not
be thrown from trucks, roughly handled, damaged or broken. Containers
shall be returned to the collection point upright, with lids properly closed.
Hauler shall ensure that its employees close all gates opened by them in
making collections, unless otherwise directed by the customer, and avoid
crossing landscaped areas and climbing or jumping over hedges and
fences.
12.) The Hauler shall keep data on the origin and tonnage of solid waste
collected in the Newport Coast area. The Hauler shall provide to the city,
on a monthly basis, the following information in a format supplied by or
approved by the General Services Director:
A. The tonnage of Solid Waste collected by the gross number of
tons collected each month.
B. The origin and tonnage of solid waste that is actually delivered
to the designated landfill each month.
C. The weight of recyclable materials collected in the Newport
Coast area and delivered for recycling.
D. The facility to which each type of recyclable material or
recovered material is delivered by the Hauler.
E. Total weight, by type of material, of glass, aluminum, plastic,
paper, cardboard, concrete, dirt, asphalt, green waste, lumber and
white goods collected monthly.
F Any other information reasonably requested by the City to meet
State or Federal regulatory reporting requirements of the City's
Source Reduction and Recycling Element (SRRE), as it may be
amended from time to time.
Exhibit C
Refuse Billing Rates
1.) Except as provided in Exhibit C, Section 2, Compensation
for all Contract Services shall be $10.89 per residence per
month. The monthly rate of $10.89 per residence is
composed of a base service fee component of $8.22 and a
disposal fee component of $ 2.67.
2.) In addition to the monthly rate of $10.89 per residence, City
will pay for extra automated containers for refuse collection
as requested by individual residents in the amount of $1.00
per resident request per month, subject to the express
limitations set forth in Exhibit B, Section 7. The City and
Hauler agree that said amount shall cover all costs and
expenses related to providing the additional container and all
services related thereto.
3.) City franchise fees pursuant to NBMC Section 12.63.070
shall be waived, but only for the Contract Services provided
in this agreement.
4.) The City will be billed in arrears by the Hauler on a monthly
basis.
5.) The monthly compensation per residence shall be increased
on October 1, 2008, and every 12 months thereafter to
reflect any increase in the Consumer Price Index as stated in
Section 4 of the agreement.
CITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 18
July 10, 2007
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: General Services Department
Mark Harmon, Director, (949) 644 -3055
mm harmon�city. newport- beach.ca. usnewport- beach.ca. us
SUBJECT: Vendor Selection for Contract Negotiations for Newport Coast Fully
Automated Residential Refuse Collection Services
ISSUE:
.Should the City Council select a vendor and direct staff to negotiate a ten -year contract
to provide fully automated residential refuse collection services in the Newport Coast
1 area?
RECOMMENDATION:
Direct staff to negotiate a ten -year agreement with CR&R, Inc. to provide fully
automated residential refuse collection services in the Newport Coast area.
DISCUSSION:
Backdround
On May 8, 2007, the City Council awarded a contract to Ware Disposal Inc., in the
amount of $616,200 to provide fully automated residential refuse collection services in
Newport Coast. On June 12, 2007 prior to executing the agreement with Ware, the
Council unanimously voted to reconsider the contract award and directed staff to begin
a new Request for Proposal (RFP) process. In starting a new RFP process, the City
Council extended the current service agreement with Waste Management of Orange
County through September 30, 2007, and provided staff with direction on additions and
revisions to help improve the RFP document. A copy of the May 8"' and June 12th
agenda reports and minutes are attached.
i
Award Contract for Newport Coast Fully Automated
Residential Refuse Collection Services
July 10, 2007
Page 2
Project Description /Scope of Services
The current contract for residential refuse collection services expires on September 30,
2007. The scope of work in the proposed contract includes providing collection services
to approximately 4,000 residences in the Newport Coast area of the City. It is projected
that the Newport Coast area will total approximately 5,200 residences at build out. The
area served in this agreement includes neighborhoods along Newport Coast Drive from
East Coast Highway to the 73 Freeway in the eastern section of the City: Bin service in
the Newport Coast area will not be included with this agreement.
To ensure that a high standard of service is maintained, specifications for the collection
of materials and defined service levels were detailed in the request for proposal. These
specifications included: automated container types, minimum waste collection levels,
collection days and times, waste disposal and recycling requirements, customer service
surveys, insurance requirements, and equipment requirements. Service levels will be
monitored by City staff who will also review the contractor's required reports of
collection and disposal activities. To better evaluate bids, haulers were required to
submit information regarding past facility and equipment inspection records, citations,
and violations.
Experience has proven that a multi -year contract is the most cost - effective means to
have solid waste collection services performed for both the City and the contractor. The
term of the proposed contract is for ten years due to the large commitment of personnel
and equipment required to provide initial service. At the conclusion of ten years,.the
City will hold an option to continue the agreement with five one -year extensions. An
annual CPI increase is included after the list year of service and is capped at a
maximum of 3% per year.. Additional disposal cost increases may be available based
.on County landfill increases, after proof of such increase has been verified by City staff
and approved by City Council.
Bid Process and Analysis
On June 14, 2007, a copy of the Council- approved RFP was mailed to each of the City's
franchised commercial solid waste haulers and Republic Services, a hauler providing
residential services elsewhere in the County who requested to be included in the
process. To help provide clarification to haulers interested in bidding on the contract,
staff hosted a mandatory bidder's conference on Wednesday, June 20, 2007.
Proposals were due to the City by Friday, June 29th at 12 pm. Prior to this deadline,
the City received 5 bids for solid waste collection services from the following solid waste
haulers:
Award Contract for Newport Coast Fully Automated
Residential Refuse Collection Services
July 10, 2007
Page 3
• CR &R Inc.
• Rainbow Disposal
• Republic Services
• Ware Disposal
• Waste Management of Orange County
Evaluation Criteria
Proposals submitted to the City were reviewed by City staff from the General Services
Department and the City Manager's Office. As indicated in Section 3 of the RFP sent to
bidders, fee schedules and costs were not the sole criteria for award of this agreement.
Evaluation criteria for the proposals included several categories; previous experience
with fully automated service, recycling requirement/recycling facility, cost Information,
and equipment / facility records.
Fully Automated Experience
CR &R currently manages over 250,000 fully automated accounts throughout the region.
These accounts total approximately 500,000 fully automated containers in service.
CR &R currently provides fully automated collection services for several local
communities, including the cities of Costa Mesa, Aliso Viejo, Dana Point, San Clemente,
San Juan Capistrano, and Laguna Niguel.
Recycling Requirement/Recycling Facility
CR &R currently owns and operates a Material Recovery Facility (MRF) in the City of
Stanton. This facility is permitted to receive and process source separated recyclables,
mixed residential trash, green waste products, and construction and demolition
materials. The MRF facility currently processes materials from 17 communities,
including all of the residential materials collected by City of Newport Beach trucks.
CR &R will use education programs, reduced contamination, and processing of mixed
waste to divert/recycle 40% of the materials collected.
Award Contract for Newport Coast Fully Automated
Residential Refuse Collection Services
July 10, 2007
Page 4
Cost Information:
Each proposal was required to include the Base Service Fee, the Disposal Cost, and
the Cost for Extra Refuse Containers (based on a maximum of 10% of homes served).
As the following chart indicates, CR &R was the lowest, responsive bid.
waste H-auler,'Proposed
cost
Per Residence
Current
Number of
Proposed Cost
PerAcl&l
Number of
- Ado
Total Annualil
Base: $8.22
Residences,
Containers
Contalners
Cost
CR &R
Disposal: $ 2.67
4,000
$1.00
400
$527,520
Total: $10.89
Base: $9.03
Ware Disposal
Disposal: 2.66
4,000
$2.95
400
$575,280
Total: $11.69
Waste
Base: $10.88
Management
Disposal: 2.60
4,000
$125
400
$662,640 -
Total: $13.48
Base-,$ 12.45
Rainbow
Disposal: 2.50
4,000
$3.00
400
$732,000
Disposal
Total: $14.95
Base: $12.06
Disposal: 2.84
4,000
$3.80
400
$733:440
Republic
services
Total:.$14.90
Equipment /Facility Records
Staff reviewed CR &R's Facility Inspection Reports and Safety Compliance Reports and
found no areas of concern. Staff also received all inspection and safety compliance
reports from all bidders.
Overview of Evaluation Criteria-
The following chart places a ranking (1= best) on the criteria for each proposal
submitted. Several haulers have very similar operations, i.e. recycling facilities, so the
scores will be the same.
Award Contract for Newport Coast Fully Automated
Residential Refuse Collection Services
July 10, 2007
Page 5
Overview of Evaluation Criteria
Optional Service Information
Several of the bidders included an optional services section as part of their proposals.
Optional services may include such programs as green waste collection/recycling,
electronic /household hazardous waste collection, and medical waste collection. For
example, both CR &R and Ware Disposal included an optional electronic/household
hazardous waste collection recycling program for an additional cost of 35 cents per
house per month.
Although not requested as part of the RFP process, Council may direct staff to include
� discussion of these service enhancements as part of the contract negotiation process.
4`�
. .
AUtomated
o-
Records
CR&R
1
1 1
2
Ware Disposal
2
3
3
3
Waste
3
1
1
2
Management
Rainbow
4
2
2
1
Disposal
Republic
5
1
1
2
Services
Optional Service Information
Several of the bidders included an optional services section as part of their proposals.
Optional services may include such programs as green waste collection/recycling,
electronic /household hazardous waste collection, and medical waste collection. For
example, both CR &R and Ware Disposal included an optional electronic/household
hazardous waste collection recycling program for an additional cost of 35 cents per
house per month.
Although not requested as part of the RFP process, Council may direct staff to include
� discussion of these service enhancements as part of the contract negotiation process.
4`�
Award Contract for Newport Coast Fully Automated
Residential Refuse Collection Services
July 10, 2007
Page 6
Financial Review
Funding for this agreement was included in the Fiscal Year 2007 -08 budget. The
current cost for Newport Coast collection services, based on the current monthly fee of
$15.03 per home, is $739,536. Based on the bid from CR &R Disposal of $10.89 per
home, staff estimates that the total cost for collection services will be $527,520. This
cost represents a savings of $159,000 this fiscal year, and over $3,100,000` during the
life of the agreement
*1 5-year Term
Current
CR &R
Ware Disposal
Waste Management
Rainbow Disposal
Republic Services
Recommendation
Monthly Cost Per Home
Extra
Container Fee
Total Annual Cost
$15.03
$3.42
$739,536
$10.89
$1.00
$527,520
$11.69
$2.95
$575,280
$13.48
$3.25
$662,640
$14.95
$3.00
$732,000
$14.90
$3.80
$733,440
Based on the evaluation of bids using the criteria above, City staff believes the proposal
from CR &R Inc. will provide the best value for the City and the residents of Newport
Coast in terms of a combination of service quality and cost.
CR &R has provided solid waste collection and material recovery services in Orange,
Los Angeles, San Bernardino, San Diego, and Riverside Counties for approximately 40
years. CR &R currently provides fully automated solid waste and recycling collection
services to several nearby cities, including Costa Mesa, Aliso Viejo, Dana Point, San
Clemente, San Juan Capistrano, and Laguna Niguel, among others.
Following City Council's direction to staff to negotiate the terms of the contract with
CR &R, staff will enter into a 3 -week negotiation period to discuss the service level terms
in the agreement. During this period, both parties will have the ability to negotiate all
terms, with the exception of cost per unit. Following the negotiation period, staff will
return to the City Council on August 14, 2007 for the final approval of the agreement
and execution of the contract.
Award Contract for Newport Coast Fully Automated
Residential Refuse Collection Services
July 10, 2007
Page 7
Environmental Review:
This project does not require environmental review.
Public Notice:
This agenda item may be noticed according to the Ralph M. Brown Act (72 hours in
advance of the public meeting at which the City Council considers the item).
Legal Review
The City Attorney's Office participated in the development of the Request for Proposals
and the evaluation of proposals submitted to the City.
®40 �i
Services Director
! /d1
Robin Clauson
City Attorney
Attachments
1) May 8 City Council Staff Report
2) May 8 City Council Minutes
3) June 12 City Council Staff Report
4) June 12 City Council Minutes
5) Request for Proposal Document
Prepared by:
Chris Marcarello
Administrative Analyst
CITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. S23
May 8, 2007
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: General Services Department
Mark Harmon, Director, (949) 644 -3055
inhamtonOctty newoort-beach ca us
SUBJECT: Contract Award to CR &R Inc. for Newport Coast Fully Automated
Residential Refuse Collection Services
ISSUE:
Should the City award a ten -year contract agreement to CR &R, Inc. to provide fully
automated residential refuse collection services In the Newport Coast area or should the
City Council go with another provider?
RECOMMENDATION:
Authorize a ten -year agreement with CR &R, Inc, through June 30, 2017 to provide fully
automated residential refuse collection services 'In the Newport Coast area.
DISCUSSION°
Background
The 7,700 -acre Newport Coast community is located at the eastern edge of the City and..
contains private residences In six major community associations, including the Newport
Midge, Newport Ridge North, Newport Coast, Mani, Pelican Point, and Crystal Cove
Community Associations.
On January 1, 2002, the City annexed the Newport Coast community, and in doing so,
agreed to fund residential trash collection services for area. residents. At the time of
annexation, Waste Management of Orange County provided fully automated residential
refuse collection services to the area under an exclusive franchise-agreement with the
County of Orange. Pursuant to State law (Public Resources Code Section 49520)' . the
City was required to continue service with the exclusive franchisee for a minimum of five
Award Contract for Newport Coast Fully Automated
Residential Refuse Collection Services
May 8, 2007
Page 2
years, and Waste Management has continued to'provide this service throughout this
period.
Proiect Description/Scope of Services
The current contract for residential refuse collection services expires on June 30, 2007.
The scope of work in the proposed contract includes providing collection services to
approximately 4,000 residences in the Newport Coast area of the City. if is projected
that the Newport Coast area will total approximately 5,200 residences at build out The
area served in this agreement includes neighborhoods along Newport Coast Drive from
east Coast Highway to the 73 Freeway in the eastern section of the City. Bin service in
the Newport Coast area will not be included with this agreement.
To ensure that a high standard of service is maintained, specifications for the collection
of materials are detailed in the request for proposal and the proposed agreement.
These specifications include: automated container types and sizes, minimum waste
collection levels, collection days and times, waste disposal and recycling requirements,
insurance requirements, and equipment requirements. Service levels will be monitored
by City staff who will also review the contractor's required reports of collection and
disposal activities.
The term of the proposed contract is for ten years due to the large commitment of
personnel and equipment required to provide initial service. An annual CPI increase is
included after the 1's' year of service. Experience has proven that a multi year contract
Is the most cost- effective means to have solid waste collection services performed for
both the City and the contractor.
Bid Process and Analysis
A Request for Proposals (RFP) was mailed to a list of the City's franchised commercial
solid waste haulers at the beginning of April. Since this time, staff has received
Inquiries and provided clarification on Items Included In the RFP.
Proposals were due to the City by Friday, April 20th at 12 pm. Prior to this deadline,
the City received 5 bids for solid waste collection services from the following solid waste
haulers:
• CR &R Inc.
• Rainbow Disposal
® Were Disposal
• Waste Management of Orange County
• Waste Resources/Robert,s waste
Award Contract for Newport Coast Fully Automated
Residential Refuse Collection Services
May 8, 2007
Page 3
Evaluation Criteria
Proposals submitted to the City were reviewed by City staff from General Services, the
City Attorney's Office, and the City Manager's Office. As indicated In Section 3 of the
RFP sent to bidders, fee schedules and costs are not the sole criteria for award of this
agreement. Instead, evaluation .criteria for the proposals Included several categories.
Based on these criteria, staff compiled the following information from each bidder:
AQMD Approved Vehicles
This section was used to evaluate. the requirement that the bidder provide collection
services using alternative fueled vehicles approved by the South Coast Air Quality
Management District for fully automated refuse collection services.
CR &R
Currently has over 70 AQMD approved alternative fueled vehicles in its fleet. No
additional trucks will be needed to meet the terms of the agreement. In its bid proposal,
CR&R proposed to use AQMD approved alternative fueled vehicles in service collection
for Newport Coast.
Rainbow Disposal
Currently has 10 AQMD approved altemative fueled vehicles in its fleet, in addition, this
hauler Is in the process of procuring an additional 14 alternative fueled vehicles to add
to its fleet. In its bid proposal, Rainbow Disposal proposed to use AQMD approved .
alternative fueled vehicles in service collection for Newport Coast.
Ware Disposal
Currently has no AQMD approved alternative fueled vehicles In its fleet., In its bid
Proposal, Ware Disposal proposed to use a diesel fueled vehicle in service collection for
Newport Coast. Diesel fuel does not satisfy requirements for an alternative fueled
vehicle per SCAQMD Rule .1193. In subsequent communications with City staff after
the close of bids on April 20, Ware Disposal changed their proposal to include the use
"'of alternative fueled vehicles for the term of the agreement. Ware Disposal now
Proposes to purchase AQMD approved alternative fuel vehicles to satisfy the proposal
requirement.
Waste Management
Cumently has 48 AQMD approved alternative fueled vehicles In its fleet. No additional
trucks will be needed to meet the terms of the agreement. In its bid proposal, Waste
Management proposed to use AQMD approved alternative fueled vehicles In service
collection for Newport Coast.
Award Contract for Newport Coast Fully Automated
Residential Refuse Collection Services
May 8, 2007
Page 4
Waste Resources/Robert's Waste
Currently has no AQMD approved alternative fueled vehicles In its fleet. In its bid
proposal, Waste ResourceslRoberts Waste proposed to use a bio- diesel fueled vehicle
in service collection for Newport Coast. Bio- diesel does not satisfy requirements for an
alternative fueled vehicle per SCAQMD Rule 1193. In subsequent communications with
City staff after the close of bids on April 20, Waste ResourceslRobert s Waste indicated
that they would be willing to acquire alternative fueled vehicles , for the term of the
agreement to satisfy the proposal requirement.
Cost Information
'Cost estimates do not Include projected growth of 25 homes per month.
FullyAutomateaf Experience
This se�tloh was used to evaluate the bidder's experience and performance providing
fully automated collection services for other public agencies.
Award Contract for Newport Coast Fully Automated
Residential Refuse Collection Services
May 8, 2007
Page 5
CR &R
Currently manages over 250,000 fully automated accounts throughout the region and
has approximately 20 years experience providing fully automated services. These
accounts total approximately 500,000 fully automated containers in service. CR &R
currently provides fully automated collection services for several local communities,
including the cities of Costa Mesa, Aliso Viejo, Dana Point, San Clemente, San Juan
Capistrano, and Laguna Niguel.
Rainbow. Disposal.
Currently manages over 30,000 fully automated accounts throughout the region and has
approximately one year experience providing fully automated services. These accounts
total approximately 100,000 fully automated containers in service. Rainbow Disposal
currently provides collection services for several local communities, including the cities
of Sunset Beach, Huntington Beach, and Fountain Valley.
Ware Disposal
Currently manages over 1,500 semi - automated accounts throughout the region and has
over a year and a half experience providing these services. These accounts total
approximately 3,00.0 containers in service. Ware Disposal currently provides collection
services for the City of Laguna Woods.
Waste Management
Currently manages over 200,000 fully automated accounts throughout the region and
has approximately 20 years . experience providing: fully automated services. These
accounts total approximately 600,000 fully automated containers in service. Waste
Management currently provides collection services for several local communities,
including the does of Irvine, Laguna Beach, Lake Forest, Orange, and Santa Ana.
Waste ResourceslRoberfs Waste
-Currently manages no automated accounts throughout region. Waste Resources
currently provides commercial collection services for the City of Gardena and RoberPs
Waste provides commercial collection services for the City of Newport Beach.
Recycling Requirement
This section was used to evaluate the bidder's ability to meet local and state waste
disposal and recycling requirements.
CR &R
Provided evidence on how it would meet a 30% diversion requirement.
Award Contract for Newport Coast Fully Automated
Residential Refuse collection Services
May 8, 2007
Page 6
in addition, CR &R currently operates a mixed waste materials recovery facil "riY for
processing waste. This process helps to provide up to 10% additional diversion of
recyclable materials in the sorting process due to contaminated recycling loads. This
occurs when materials other than recyctables are placed in a recycling container.
'Rainbow Disposal
Provided evidence on how it would meet a 30% diversion requirement.
In addition, Rainbow Disposal currently operates a mixed waste materials recovery
facl* for processing waste. This process helps to provide up to 10% additional
diversion of recyclable materials in the sorting process due to contaminated recycling
loads. This occurs when materials other than recyclables are placed in a recycling
container.
s
Ware Disposal
Provided evidence on how it would meet a 30% diversion requirement.
In addition, Ware Disposal currently operates a commingled recycling materials
recovery facility for processing waste. This process does not provide additional
diversion of recyclable materials.
Waste Management
Provided evidence on how it would meet a 30% diversion requirement.
In addition, Waste .Management currently operates a mixed waste materials recovery
facility for processing waste. This process helps to provide up to 10% additional
.:diversion of recyclable materials in the sorting process due to contaminated recycling
loads. This occurs when materials other than recyclables are placed In a recycling
container.
Waste Resources/Roberts Waste
Provided evidence on how.it would meet.a 30 % diversion requirement
in addition,. Waste Resources /Robert's Waste currently utilizes a commingled recycling
Materials recovery facility for processing waste. This process does not provide
additional diversion of recyclable materials.
lmplementat/on Plan
This section was used to evaluate the bidder's ability to facilitate a seamless transition
of collection services between service providers.
,3
Award Contract for Newport Coast Fully Automated
Residential Refuse Collection Services
May 8, 2007
Page 7
.CR &R
Hauler has successfully managed service changeovers between solid waste providers.
These changeovers include the cities of Laguna Hills, Bellflower, and Rancho Santa
Margarita. in addition, CR &R currently has over 15,000 containers in stock that will be
available for Newport Coast residents prior to the July 1 start date.
Rainbow Disposal
Hauler has successfully managed seance changeovers between solid waste providers.
These changeovers include the City of Huntington Beach and the Midway City Sanitary
District, to addition, Rainbow currently has over 10,000 containers In stock that will be
available for Newport Coast residents prior to the July 1 start date.
_Ware Disposal
Hauler has successfully managed a service changeover between solid waste providers
in the City of Laguna Woods. In addition, Ware Disposal proposes to order
approximately 8,000 containers for Newport Coast residents prior to the July 1 start
date.
-Waste Management
Hauler is the current service provider for Newport Coast; therefore, no implementation
plan or new containers would be necessary.
Waste Resources /Robert's Waste
Hauler did not provide evidence of a service changeover between solid waste providers.
In addition, Waste Reso.ur+oes/Robert's Waste proposes to order approximately 8,000
containers for Newport Coast residents prior to the July 1 start date.
A Last Factor for Consideration
City staff has concerns that companies which have not been providing fully automated
collection services do- not have the level of w perienoe with automated vehicles needed
to match the current level of service being provided. The ability to provide the collection
services as °quietly° and. as safely as possible, in terms of potential property damage, is
a factor for consideration. Driver inexperience with using automated containers and the
vehicles themselves have the potential to create problems with providing a seamless
transition.
Award Contract for Newport Coast Fully Automated
Residential Refuse Collection Services
May 8, 2007
Page 8
Financial Review / Financial Availabili
Funding for this agreement was included in the Fiscal Year 2007 -08 budget. The
current cost for Newport Coast collection services, based on the current monthly fee of
$15.03 per home, Is $739,536. Based on the bid from CR &R Disposal of $13.57 per
home, staff -estimates that the total cost for collection services will be $667,236. This
cost represents a savings of $72,300 next fiscal year and over $700,000 during the life
of the agreement
Current
�M
Rainbow Disposal Bid
Ware Disposal Bid
Waste Management Bid
Waste ResourceslRoberts Bid
Recommendation
Monthly Cost Per Home Total Annual Cost
$15.03 $739,536
$13.57 $667,236
$14.95 $737,448
$11.96 $616,200
$15.03 $739,536
$18.29 $974,712
Based on the evaluation of bids using the criteria above, City staff believes the proposal
from CR &R Inc. will provide the best value for the City and the residents of Newport
Coast in terms of a combination of service quality and cost.
CR &R has provided solid waste collection and material recovery services. in Orange,
Los Angeles, San Bernardino, San Diego, and Riverside Counties for approximately 40
Years. Through a subsidiary., CR &R currently provides fully automated solid waste and
.recycling collection services to several nearby cities, Including Costa Mesa, Aliso Viejo,
Dana Point, San Clemente, San Juan Capistrano, and Laguna Niguel, among others.
However, if the City Council believes the cost of the service provided is the most
Important factor in selecting tfie waste contractor, the lowest cost provider would be
Ware Disposal.
i
Award Contract for Newport Coast Fully Automated
Residential Refuse Collection Services
May 8, 2007
Page 9
Environmental Review•
This project does not require environmental review.
Public Notice:
This agenda Item may be noticed according to the Ralph M. Brown Act (72 hours in
advance of the public meeting at which the City Council considers. the item).
Legal Rev!ew
The City Attorney's Office participated In the development of the Request for Proposals
and the evaluation of proposals submitted to the City. Based on the evaluation using
the established criteria, the City Attorney's Office advised that awarding an agreement
to CR &R is in conformance with the law because the City should consider all factors
and not just price In reviewing the requests for proposal.
General Services Director
Reviewed by:
Aaron harp
Assistant City Attorney
Attachments:
Prepared by:
Chris Marcarello
Administrative Analyst
1. Request for Proposals for Residential Solid Waste Collection and Recycling in
Newport Coast
2. Proposed Contract for Fully Automated Solid Waste Collection Services
City Council Regular Meeting
Page 1 of 3
S23. CONTRACT AWARD TO CR &R INC. FOR NEWPORT COAST FULLY AUTOMATED
RESIDENTIAL REFUSE COLLECTION SERVICES [38/100 - 20071.
Staff Report
General Services Director Mark Harmon gave a PowerPoint presentation and provided
information regarding the Request for Proposals for maintaining the .current level of service.
Staffs recommendation is to contract with CR&R to provide fully automated collection.
General Services Director Harmon responded to Council Member Henn that the contract to
Provide seven (7) days notice of termination to a waste hauler could put the City in disarray
unless there was another waste hauler in the wings.
City Attorney Clauson responded to Council Member Curry that the recommendation was for
the waste hauler to provide a Performance Bond and cost basis analysis and that the Council
would have the ability to deal with lack of performance. General Services Director Harmon felt
it would be risky to award a contract based on low cost only.
Council Member Henn said that all of the trucks were to be filly automated. Implicitly Ware is
representing that they will have another fully automated truck and in fact will have two fully
automated trucks.
Mayor Pro Tem Selich asked why the RFP was set up to provide an additional schedule for
additional containers and wondered if the wide 'spread in cost was because it was an open ended
contract. He also asked why would the City not just ask for a single bid for all services. General
Services Director Harmon explained that there is a cost for additional containers throughout
the industry and a percentage would tend to limit the number of additional containers.
Council Member Gardner asked why there would be a limit of 80% set when the recycling
requirement is 50 %. General Services Director Harmon responded that currently the City is
diverting about 57 %. A lot of recycling comes from commercial and construction waste and it is
more difficult to attain a high diversion rate on residential waste.
Council Member Henn asked if it was typical to include a 13% CPL City Attorney Clauson-said
that over the years the Council has placed a percentage on the CPI adjustment. Council
Member Henn believed there should be 4% ceiling on all CPIs.
David Fahrion, President, Solid Waste Division, CR&R talked about hie c mpanyrs services end
saw this as an opportunity to expand the company's services. He stated that his company
serves most of the communities in Southern California and 2oo,0oo residences with fully
automated trucks.
Patrick Munoz, a Newport Beach resident speaking on behalf of Ware Disposal, pointed out
that Ware Disposal offered favorable options for consideration - price, vehicles, experience and
recycling. Other areas of concern to the Council should include yearly increases and additional
equipment charges. Mr. Munoz explained to Mayor Rosansky that Ware would agree to a
provision to limit the supply of additional containers to encourage more recycling which would
result in a dramatic savings over time. Ware has always agreed to povide fully automated
AQMD compliant vehicles. Ware has one vehicle and provided the City with copies of invoices
for two additional compliant vehicles that it will receive in the near future. He showed
examples and explained the difference between fully automated and semi- automated vehicles.
Mr. Munoz further explained that the third fully automated AQXD compliant vehicle is due to
arrive in September. It is a smaller vehicle that can more easily traverse the residential routes.
Recycling is an important issue that was not adequately addressed in the RFP. Ware's facility
in Santa Ana will provide the same MERF benefits with a diversion percentage of 43.
http:// newportbeacl Lgtanicus,com/MinutesViewer php?view_id= 16&clip_id =491 06/01/2007 .
City Council Regular Meeting
Page 2 of 3
Mayor Pro Tem. Selich asked if Ware were awarded a contract would it guarantee a 43°%
diversion rate.
Council Member Webb said he was confused because the proposal was supposed to have listed
the equipment. Mr. Munoz said that the intent of Ware's proposal was always to provide
AQMD compliant trucks.
Council Member Henn asked how Ware intended to maintain the trucks in order to keep them
operationaL Mr. Munoz responded that Ware has mechanics that are capable of working on
these trucks with the exception of the fuel system and the trucks will he serviced under
warranty as it relates to the fuel system.
Mayor Pro Tem Selich said when he first looked at the proposal he saw a base rate that was
substantially lower than that of other bidders. He asked what assurance Ware would give that
they would not request a rate increase in a year or two. Mr. Munoz stated that Ware would not
ask the City for an increase. The rate proposed is not an abnormally low rate and it is a fair
rate for the work proposed.
Council Member Gardner liked the fact that the homeowner would be given an extra recycling
container if needed. Mr. Munoz stated that in his professional experience he believed the
number proposed by staff was high.
Mayor Rosansky stated that the CC &R contract does not provide for additional recycling bins.
General Services Manager Harmon said to his knowledge the extra recycling container was not
free with CC&R_ City Attorney Clausen explained to Mayor Rosansky that this was not a "low
bid" situation but a contract negotiation and often staff can go back and negotiate certain
-points. The decision the Council needs to make should be based on the response to proposed
and it would be unfair to not allow other bidders to meet the requirements. If the Council
wanted to change the terms of the RFP it should go back out for bid again. City Attorney
Clausen suggested the Council ask CC &R whether it could guarantee 43% diversion since
CC&R is the recommended hauler_
Council Member Curry asked if the Council could select a carrier and negotiate with that
carrier. City Attorney Clausen responded that the Council would need to give the selected
carrier an opportunity to renegotiate the contract with the selected bidder.
Steven Schrey, Nixon Peabody LLP, attorney representing CR&R said that this is a contract
ProposaL 'What is happening here is that CC &R in a timely fashion met the City's RFP'
requirements and Staff is recommending that the Council accept staffe recommendation.
Council Member Henn said he was very uncomfortable negotiating on the fly and would rather
make a decision based on the proposals.
Jay Ware, General Manager, Ware Disposal, reiterated Mr. Munoze statements and noted that
the Ware family and business reside in Newport Beach and that the company has drivers and
vehicles that can immediately step in to provide service to Newport Beach. The proposal stands
and if there is a need to change the diversion rate for recycling, Ware would agree to 43°% or
Provide free containers.
Mr. Ware responded to Mayor Rosansky that within the RFP there was no container amount
and he felt 141 containers was too much. If someone needs an additional container they need to
know how to recycle and Ware is committed to working with the City to teach residents how to
recycle.
Motioa by Cou cil Member Cu rry to authorize a ten year agreement with Ware Disposal
through June 30, 2017 to provide fully automated' residential refuse collection services in the
Newport Coast area with additions and changes to the contract to include the following: the
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City Council Regular Meeting
Page 3 of 3.
hauler will provide free additional recycling bins; guarantee a diversion rate of 40 %; provide all
reports; provide vehicle citation reports to the City Council; and, provide liability insurance to
the City in the amount of $5 million.
The motion carried by the following roll call vote:
Ayes; Council Member Henn, Council Member Curry, Mayor Pro Tem Selich, Mayor Rosansky,
Council Member Daigle, Council Member Gardner
Noes: Council Member Webb
httpJ/ newportbeach .granlcus,com/MinutesViewer php?wew_i8= 16&clip_id =491 06101/2007
CITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 19
June 12, 2007
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Mark Harmon, Director of General Services
Ext. 3055, mharmon ci .new ort- beach.ca.us
Robin Clauson, City Attorney
Ext. 3131, rclauson @city.newport- beach.ca.us
SUBJECT: Newport Coast Residential Refuse Collection Services
ISSUE:
Does the City Council want to begin a new Request for Proposal (RFP) process, reject
all previous proposals received, and direct staff to issue the revised RFP which is
attached to this report, and extend the current Agreement with Waste Management of
Orange County for three months- from July 1, 2007 through September 30, 2007?
RECOMMENDATION:
Begin a new Request for Proposals (RFP) process, reject all previous proposals
received, and direct staff-to issue the revised RFP which is attached to this report, and.
extend the current Agreement with Waste Management of Orange County for three
months- from July 1, 2007 through September 30, 2007
BACKGROUND:
On April 20, 2007, City staff received five proposals for solid waste collection services in
the Newport Coast area. The current contract with Waste Management of Orange
County is set to expire on June 30, 2007. Each proposal was evaluated based on
criteria outlined in the RFP sent to each bidder. These criteria included: the use of
AQMb approved vehicles, fully automated collection experience, ability to meet the
recycling requirement, proposed implementation plan, and proposed cost per unit.
Based on staffs analysis, a report was presented 'to City Council at its May 8, 2007
meeting, recommending that a ten -year agreement be awarded to CR &R, Inc. to
provide these services. Following discussion, and consideration of presentation by
Ware Disposal including some proposed terms and equipment differeDt_than --set forth in
OF
Newport Coast Residential Refuse Collection Services
June 12, 2007
Page 2
their proposal, Council voted to award the contract to Ware Disposal, Inc. based on that
firm's lowest cost per unit proposal and agreements to limit number of second
containers and to recycle 40% (May 8th staff report and Council minutes attached).
On May 22, 2007, the City Council voted to reconsider its decision concerning the
contract award to Ware Disposal, Inc. This reconsideration was due to concerns a
majority of the council members had with the process used in evaluating and awarding
the contract.
Request for Proposals (RFP)
During the, discussion of the solid waste collection services in Newport Coast, Council
members made several recommendations concerning the RFP and draft contract that
was sent to prospective bidders. The recommended changes will allow for an improved
process that might avoid some of the problems that occurred during the previous
evaluation.
Staff has implemented revisions in the attached RFP. The changes include, but are not
limited to, the following:
•
Clearly.defined bid cut -off date with a short period of time following the cut -off
l
date for staff to request bid clarification. No information from bidders Will be
accepted or considered following the clarification time frame and unless it is
information that is requested by City staff.
•
Established negotiation period. Staff will have 10 days following Council's
selection of the best responsive bid to negotiate terms of agreement, including
defined service levels, with the exception of cost per unit.
•
Clear description of the type of collection equipment required for a bid to be
considered responsive.
Lower cap on annual CPI 'increases to be consistent with City's existing large
contracts.
®
Reporting requirements that include customer satisfaction surveys.
a
Mandatory bidders' conference to discuss the RFP with prospective bidders.
®
Multi =year extensions past initial term of agreement.
®
Cap on the number of extra containers the City will fund.
®
Appropriate liability insurance levels reflective of industry risk.
Speck changes are highlighted in the attached RFP document.
In the event that Council rejects the previous bids and directs staff to re- submit the
revised RFP to qualified companies, staff respectfully requests that Council review and
comment on the attached RFP.
Newport Coast Residential Refuse Collection Services
June 12, 2007
Page 3
Timeframe /Process
If Council rejects all previous proposals, directs staff to re- issue the RFP, and extends
the current contract with Waste Management of Orange County, the following timeframe
would be followed:
June 13- RFP would be mailed to all solid waste companies with valid franchise
agreements on file with General Services Department.
June 19- Mandatory pre -bid conference to discuss RFP and answer any
questions.
June 29- Bids due to General Services Department.
June 29 Staff will evaluate bids and seek clarification /additional information on any
- July 11 items.
July 24- Staff will present recommended .contract to City Council for approval.
Following Council approval, staff will negotiate/finalize terms of the
agreement with approved hauler.
August 14- Final Contract is approved by City Council.
October 1- New contractor starts servicing the Newport Coast area.
Waste Management of Orange County, the current provider of services in the Newport
Coast area, has agreed to a contract extension through September 30, 2007, if City
Council decides to solicit bids for this project. A letter from Waste Management is
attached.
Financial Review
The current. budget for solid waste services in Newport Coast is $740,000 per year. By
rejecting all bids and extending the current agreement for three months, the potential
cost to the City is approximately $29,000 above what we would pay under a contract
with Ware Disposal.
Environmental Review
This.project does not require environmental review.
Public Notice
This agenda item may be noticed according to the Ralph M. Brown Act (72 hours in
advance of the public meeting at which the City Council considers the item).
Newport Coast Residential Refuse Collection Services
June 12, 2007
Page 4
Legal Review
The City Attorney's office participated in the development of the Request for Proposals
attached to this report.
Mark Harmon
Director of General Services
Robin Clauson
City Attorney
! Attachments:
1) May 8t' staff report and Council Minutes
2) Revised Request for Proposals (RFP)
3) Letter from Waste Management of Orange County
City Council Regular Meeting Page 1 of 1
19. NEWPORT COAST RESIDENTIAL REFUSE COLLECTION SERVICES (0513) [381100- 2007).
Staff Report
Dolores Otting pointed out that bulk items can not be picked up by a vehicle arm. She recommended that the
General Services department conduct visual inspections of the trash vehicles and issue tags or stickers.
Council Member Henn felt this was a big improvement in the way the City was going about the contracting
business and offered to meet with staff regarding suggestions about the organization of the RFP.
In response to the suggestion about the conduct of inspections General Services Director Harmon said it was a
matter of time and staff availability_ He felt that Ms. Otting's idea of a tag or sticker on trucks was a good idea
even though it would not ensure that there would not be any problems.
Motion by Council Member Daigle to begin a new Request for Proposals (RFP) process, reject all previous
proposals received, and direct staff to issue a revised RFP which is substantially similar to the one attached to
the staff report, and extend the current Agreement with Waste Management of Orange County for three
months from July 1, 2007 through September 30, 2007.
Dave Ault, Republic Services, recommended that the City request that copies of the bi- annual CHP inspection
be forwarded to the City. He also recommended that in order to remove politics from the issue the most
successful bid processes involved separating RFP's and RFQ's so that bidders could submit separate responses.
Using this manner, unqualified bidders would not be considered.
The motion carried by the following roll call vote:
Ayes: Council Member Henn, Council Member Curry, Mayor Pro Tem Selich, Mayor Rosansky, Council
Member Webb, Council Member Daigle, Council Member Gardner
X'
ttp:// newportbeach. granicus. com /MiriutesViewer.php ?view_id =16 &clip id =535 07/03/2007
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Request for Proposal
Residential Solid Waste Collection and Recycling Services in Newport Coast
City of Newport Beach
Request for Proposal
Residential Solid Waste Collection and Recycling Services in Newport Coast
1. Introduction
The City of Newport Beach (City) is soliciting written competitive proposals from
private contractors to provide fully automated solid waste collection and recycling
services for residential customers within the Newport Coast area of the City. The
10 year contract will provide for the successful contractor to provide curbside
residential service within the Newport Coast boundaries shown on the attached
map for all existing and future curbside residential service needs within the
service area. After a careful review of each submitted proposal, the City will
conduct an evaluation leading to the selection of a contractor and the award of a
contract.
The City s objectives for the solid waste collection and. recycling services are to:
Provide an efficient solid waste management system, which includes
mandatory collection of solid waste and recyclable materials.
Preserve the environment and protect the health, safety and quality of life
for Newport Beach residents by utilizing fully automated AQMD compliant
vehicles and trained operators.
Comply with the State of California Assembly Bill 939, known as the
California Integrated Waste Management Act of 1989, which requires
jurisdictions to divert from disposal in landfills 50% of the solid waste
generated within the City.
Copies of this proposal may be obtained in person at the Administration office of
the General Services Department located at 592 Superior Avenue, Newport
Beach. Questions regarding this agreement should be addressed to Chris
Marcarello, Administrative Analyst at (949) 6443057.
Proposals and all written inquiries related to this RFP are to be submitted in a
sealed envelope to the General Services Administration office, located in Bldg. A
at 592 Superior Blvd., no later than 12:00 p.m. on June 29, 2007 with the
following notation:
CONFIDENTIAL —
Residential Solid Waste Collection and Recycling Services in Newport Coast
2. Scope of Services
The City seeks a private solid waste management company with a current City of° _ l
Newport Beach commercial solid waste franchise (Contractor) to undertake full
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responsibility for operation of fully automated residential curbside solid waste and
recyclable material collection within the Newport Coast area of the City of
Newport Beach. The contract term is 10 (ten) years, with a City option for five 1
(one) year extensions. The following are the services to be provided by the
Contractor.
• Provide weekly fully automated residential curbside refuse collection,
recycling and disposal services to single - family residences in the Newport
Coast Area annexed on January 1, 2002 by the City.
• Handle all resident inquiries or complaints of service in an expeditious
manner.
• Provide a bulky item pickup twice per year for each single - family
residence with a limit of 4 items per request. Bulk Item collection requests
must be collected within 1 -week of call and scheduled for the same day as
refuse and recycling collection.
• Provide all City residential customers an automated, wheeled solid waste
container in the size of 96 gallons for refuse materials, unless the resident
requests a smaller size.
• Provide to all City residential customers an automated, wheeled recycling
container -in the size of 96 gallons for mixed recyclables, unless the
resident requests a smaller size.
• Provide additional individual automated, wheeled solid waste containers
upon property owner request. City will pay for additional refuse containers
up to 10% of total billed residential accounts (e.g. If City is billed for 4,000
total customer accounts per month, Hauler may charge City for a
maximum of 400 additional containers per month). There will be no
additional charge to the City for extra recycling containers requested.
• Collect solid waste and recyclable materials from residential customers at
intervals of not less than once per week. Collection schedule will remain
the same as existing schedule unless agreed upon between City and
Contractor and will not be adjusted earlier than 60 days after start of
agreement.
• Collect, recycle and dispose of all residential solid waste materials in
accordance with the provisions of the. City's commercial non - exclusive
solid waste franchise agreement and all applicable City ordinances and
State mandates.
• Invoice the City for collection services rendered at intervals not to exceed
once per.month.
Provide curbside collection of Christmas trees on the first two regularly
scheduled collection days for each home after Christmas Day.
• Provide a monthly report to the City relating to the City s AB 939
compliance requirements.
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3. Timeline
Mandatory Bidders Conference
Proposal due to the City
Evaluation Period /Bid Clarification
Award of Contract
Negotiate /Finalize Terms
Final Contract Approved
Contractor in Place
4. Bidder's Conference
June 20, 2007 10 A.M.
June 29, 2007 (By 12:00 p.m.)
June 29 through July 6, 2007
July 24, 2007
July 25 through August 7, 2007
August 14, 2007
October 1, 2007
All parties selected to submit proposals for Residential Solid Waste Collection
and Recycling Services in Newport Coast are required to attend a MANDATORY
pre -bid meeting. The meeting is scheduled for June 20, 2007 at 10:00 A.M., 592
Superior Avenue, Building A Newport Beach, CA. City staff will be on hand to
review the proposals and answer questions from prospective bidders. FAILURE
TO ATTEND THIS PRE -BID MEETING SHALL RESULT IN DISQUALIFICATION
FROM THE RFP PROCESS.
5. Proposal Deadline
Proposals and all written inquiries related to this RFP are to be submitted in a
sealed envelope to the General Services Administration office, located in Bldg. A
at 592 Superior Blvd., no later than 12:00 p.m. on June 29, 2007 with the
following notation
CONFIDENTIAL —
(Residential Solid Waste Collection and Recycling Services in Newport Coast)
After the 12:00 p.m. deadline on June 29, 2007, no additional information may be
submitted or will be reviewed in regards to this RFP. From June 29, 2007
through July 6, 2007, City staff will conduct a bid clarification period to clarify
information contained in submitted proposals. BIDDER MAY NOT CHANGE OR
MODIFY THEIR PROPOSAL, OR PROVIDE ANY ADDITIONAL INFORMATION
DURING. THIS CLARIFICATION PERIOD UNLESS THE ADDITIONAL
INFORMATION IS SPECIFICALLY REQUESTED BY CITY STAFF TO CLARIFY
OR SUPPORT THE SUBMITTED. PROPOSAL.
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6. Negotiation Period
Following the City Council's selection of the best responsive bid on July 24,
2007, City staff will enter into a 14 (fourteen) day negotiation period with the
selected bidder. During this period, parties will have the ability to negotiate
service level terms of the agreement as discussed in section 10 below, with the
exception of cost per unit. In the event that an agreement cannot be reached,
staff will open negotiations with next lowest most responsive bidder.
7. Community Background
The City of Newport Beach is a scenic beach community located in Orange
County with.a population of 85,000 residents. The community is home to a 21
square mile harbor area and over 23 miles of ocean beach. The City uses a mix
of services to perform residential and commercial solid waste collection
throughout the community. Commercial solid waste collection is performed
through a non - exclusive system with approximately 25 trash haulers offering
fixed and temporary route service to customers. 85% of residential solid waste
collection is performed by City staff, with the remainder being managed by
private solid waste hauler firms through exclusive franchise agreement.
The 7,700 -acre Newport Coast community is located at the eastern edge of the
City and contains private residences in six major community associations,
including, the Newport Ridge Community Association, Newport Ridge North
Community Association, Newport Coast Community, Association, Ziani
Community Association, Pelican Point Community Association, and Crystal Cove
Community Association.
In January 1, 2002, the City annexed the Newport Coast community, and in
doing so, agreed to assume trash collection services for area residents.
Currently there are approximately 3.,478 homes (as of February 2007) in the
Newport Coast area of the City. Since the area is still in development, it is
expected that several hundred homes will be added over the next 5 years. As
new homes are built, they will also require fully automated residential trash
collection services. Bin service in the Newport Coast area will not be included
with this agreement.
Current service areas include neighborhoods along Newport Coast Drive from
Coast Highway East to the 73 freeway in the eastern section of the City.
Attachment 1 is a map of the Newport Coast area showing collection areas
highlighted in yellow.
The following table shows the number of homes, containers, and tonnage
collected in the Newport Coast area. This data is presented for information only
j and the City of Newport Beach accepts no responsibility for the accuracy of this
4
data. All prospective bidders should take whatever steps they feel are necessary
to verify the number of homes, containers, routes, and collection area in
preparing their proposals.
Collection Area Information
(As of Feb 2007)
2004 2005 2006 2007
Number of Homes 2,930 3,223 3,397 3,478
Tonnage Collected
Trash 4,468 4,870 4,929
Mixed Recyclables 2,247 2,253 2,310
Total 6,715 7,123 7,239
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1. Solid Waste Collection Requirements
The following are a summary of the requirements for operation of fully automated
refuse collection services in the Newport Coast area of the City of Newport
Beach. The Contractor shall at all times comply with and maintain in good
standing its non - exclusive commercial solid waste franchise agreement with the
City. The contractor shall be responsible for all labor, equipment, disposal costs,
and incidental costs associated with providing this service as an independent
contractor. In addition, all collection, recycling and disposal activities of
residential solid waste materials will be done in accordance with all applicable
City ordinances and State mandates.
1. Containers
The Contractor will provide fully automated solid waste and recyclable material
containers for residential customers. The automated solid waste container will
have suitable handles and wheels, tight - fitting covers for holding garbage without
leakage or escape of odors; and be constructed of watertight metal or plastic.
The City shall approve the color of all solid waste containers used. Containers
for municipal solid waste and recyclable materials will be offered to customers in
the size of 96 gallons. Customers .will be allowed to request a smaller size
container, if desired. If a customer requests a smaller container, the contractor
will provide one to that customer within 14 days.
2. Additional Solid Waste Collection Services
The Contractor will provide a bulky item pickup twice per year for each single -
family residence with a limit of 4 items per request. Bulk item collection shall
occur within one week of request by customer and shall be collected on the same
day as trash and recycling collection. Bulk Item collection may occur with non
automated side- loading equipment and non alternative fuel vehicles.
The Contractor will provide Christmas tree collection services during the first two
weeks following Christmas day.
3. Waste Collection Days/Times
The Contractor will collect solid waste and recyclable materials at intervals not
less than once per week. Collection of solid wastes and recyclable materials
may not commence eariier than 7:00 a.m. and will stop no later than 6:30 p.m.
each collection day. The collection days for Newport Coast are currently
Monday, Tuesday, Wednesday and Friday and may not be changed without City
approval. In no event shall the City approve a request to collect on Saturday or
Sunday unless authorized by the City s General Services Director. No change to
the current schedule will be considered with less than 60 days notice to the City.
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4. Waste Disposal Requirements /Recycling Requirements
The Contractor will dispose of all solid waste collected and transported at a State
certified/licensed landfill, State certified /licensed transfer station, State
certified /licensed recycling facility or State certified /licensed materials recovery
facility which is lawfully authorized to accept that specific type of solid waste
material. The Contractor will be responsible for payment of all fees imposed for
disposal.
The Contractor will collect the following types of recyclable materials from
residential customers: newsprint; cardboard; plastic containers; glass containers;
and aluminum containers. The Contractor must also meet the City's recycling
requirement of at least 40% in Newport Coast.
5. Fee Increases
The Contractor will be entitled to an annual fee increased based on increases in
the Consumer Price Index (CPI — all urban consumers for the Los Angeles,
Anaheim, and Riverside area) for the 12 months proceeding the prior June index,
provided that the CPI increase shall not exceed 3% per 12 month period.
6. 'Reporting Requirements
The Contractor will be required to submit a monthly report to the City which
provides information on the solid waste disposal and recycling operations, within
the Newport Coast area of the City of Newport Beach in order to evaluate the
Contractor's recycling program. The reports must be presented in a form
satisfactory to the City.
l
7. Insurance
Without limiting Contractor's indemnification. of City, Contractor shall obtain,
provide and maintain at its own expense during the term of this Agreement, a
policy or policies of liability insurance of the type and amounts described below
and in a form satisfactory to City.
A. Certificates of Insurance. Contractor shall provide certificates of
insurance with original endorsements to City as evidence of the insurance
coverage required herein. Insurance certificates must be approved by City's Risk
Manager prior to commencement of the service contract. Current certification of.
insurance shall be kept on file with City at all times during the term of. this
Agreement.
7
B. Signature. A person authorized by the insurer to bind coverage on
its behalf shall sign certification of all required policies.
C. Acceptable Insurers. All insurance policies shall be issued by an
insurance company currently authorized by the Insurance Commissioner to
transact insurance policies in the State of California, with an assigned -
policyholders' Rating of A (or higher) and Financial Size Category Class VII (or
larger) in accordance with the latest edition of Best's Key Rating Guide, unless
otherwise approved by the City's Risk Manager.
D. Coverage Requirements.
1. Workers' Compensation Coverage. Contractor shall
maintain statutory Workers' Compensation Insurance and one million dollars
($1,000,000) Employer's Liability Insurance for his or her employees in
accordance with the laws of the State of California. Any notice of cancellation or
non - renewal of all Workers' Compensation policies must be received by City at
least thirty (30) calendar days (10 calendar days written notice of non - payment of
premium) prior to such change. The insurer shall agree to waive all rights of
subrogation against City, its officers, agents, employees and volunteers for
losses arising from work performed by Contractor that relates in any way to this
Agreement and provide as such by a waiver of subrogation endorsement.
2. General Liability Coverage. Contractor shall maintain
commercial general liability insurance in an amount not less than five million
dollars ($5,000,000) per occurrence for bodily injury, personal injury, and
property damage, including without limitation, contractual liability. If commercial
general liability insurance or other form with a general aggregate limit is used,
either the general aggregate limit shall apply separately to the work to be
performed under this Agreement, or the general aggregate limit shall be at least
twice the required occurrence limit.
3. Automobile Liability Coverage. Contractor shall maintain
commercial vehicle and automobile insurance covering bodily injury and property
damage for all activities of the Contract arising out of or in connection with work
to be performed under this Agreement, including coverage for any owned, hired,
non -owned or rented vehicles, in an amount not less than five million dollars
($5,000,000) combined single limit for each occurrence.
E. Endorsements. .Each general liability and automobile liability
insurance policy shall be endorsed with the following specific language:
1. The City, its elected or appointed officers, officials,
employees, agents and volunteers are to be covered as additional insureds with
respect to liability arising out of work performed by or on behalf of the Contractor.
11
2. This policy shall be considered primary insurance as
respects to City, its elected or appointed officers, officials, employees, agents
and volunteers as respects to all claims, losses, or liability arising directly or
indirectly from the Contractors operations or services provided to City. Any
insurance maintained by City, including any self- insured retention City may have,
shall be considered excess insurance only and not contributory with the
insurance provided hereunder.
3. This insurance shall act for each insured and additional
insured as though a separate policy had been written for each, except with
respect to the limits of liability of the insuring company.
4. The insurer waives all rights of subrogation against City, its
elected or appointed officers, officials, employees, agents and volunteers.
5. Any failure to comply with reporting provisions of the policies
shall not affect coverage provided to City, its elected or appointed officers,
officials, employees, agents or volunteers.
6. The insurance provided. by this policy shall not be
suspended, voided, canceled, or reduced in coverage or in limits, by either party
except after thirty (30) calendar days (10 calendar days written notice of non-
payment of premium) written notice has been received by City.
F. Timely Notice of Claims. Contractor shall give City prompt and
timely notice of claim(s) made or suit instituted .arising out of or resulting from
Contractor's performance under this Agreement.
G. Additional Insurance. Contractor. shall also procure and maintain,
at its own cost and expense, any additional kinds of insurance, which in its own
judgment may be necessary for its proper protection and prosecution of the work.
8. Guarantees
The Contractor will file with the City a performance' bond in the amount of one
hundred percent (100 %) of six months of the contract price payable to the City
for all losses and damages the City may sustain as a result of any act or
omission of the Contractor, including its employees, agents, and subcontractors
arising from the operation or termination of the services under the agreement.
9. Equipment Requirements
'The Contractor will use alternative fuel vehicles approved by the South Coast Air
Quality Management District for fully automated refuse collection services.
Vehicles must meet all requirements speed per AQMD Rule 1193. Vehicles
used for collection services must be fully automated side- loading refuse tracks,
Ir;
using a fully mechanized arm to pick up and dump, automated waste collection
containers. Drivers should not exit the vehicle to assist with securing the
containers to, or lifting the containers into, the refuse collection truck. All vehicles
shall be properly maintained, kept clean and in good repair, and be uniformly
painted. All vehicles must pass the required periodic "BIT" inspection and
provide evidence to the City upon request in a form acceptable to the City.
Vehicles that do not pass the inspection will not be allowed to operate within City
limits until such documentation is provided.
Should a hydraulic or other type of material spill occur as a result of collection
services, Contractor shall notify the City within hour.
10. Customer Service Surveys
The Contractor will conduct customer service studies to help the City evaluate
performance. Twenty (20) days prior to the start of the contract, at the
completion of 6 (six) months, and every year thereafter, the City shall provide a
list of questions that shall be used in a customer service survey. At the
Contractor's expense, the Contractor will prepare and mail a survey form/card, in
a form acceptable to the City, to each Newport Coast residence serviced for
refuse collection on record_ All survey forms and cards will be mailed directly
from the resident to the City at the contractor's expense, via business reply mail.
The City shall share the results of the survey with the Contractor.
The nature of, and the proposed values for, service levels will be determined
during the negotiation period following the council award of contract.
11. Defined Service Levels
Contractor shall meet defined service levels in performance with residential
refuse collection services in Newport Coast. Service levels shall include, but not
necessarily be limited to:
• Weekly collection of refuse materials from each residence on record with
Contractor.
• Refuse collection in accordance with the provisions of the City's
commercial non - exclusive solid waste franchise agreement and all
applicable City ordinances and State mandates.
• Perform collection of materials not earlier than 7:00 a.m. and not later than
6:30 p.m. Monday-through Friday.
• Provide a bulky item pickup twice. per year for each single- family
residence with a limit of 4 items per request.
• Provide curbside collection of Christmas trees on the first two regularly
scheduled collection days after Christmas Day.
irc
• Provide a monthly report, in a form acceptable to the City, relating to the
City's AB 939 compliance requirements and 40% recycling requirement.
• Provide a customer service survey, at Contractor's cost, at the completion
of six months and every year thereafter.
• Utilize fully automated alternative fuel vehicles approved by the South
Coast Air Quality Management District for refuse collection services.
• , Provide all "BIT" inspection and citation.records for vehicles used in
refuse collection services.
12. Work Deficiencies
Failure to meet defined service levels shall be considered a work deficiency and
must be corrected in a timeframe per the City s discretion. Written notification of
deficiency may be hand delivered, emailed, faxed, or mailed. As soon as the
Contractor has corrected the listed deficiency, the Contractor shall notify the City
and request inspection of the'corrective work. Deficiencies listed in the Notice of
Deficiency shall not be considered as having been corrected until the City has
had the opportunity to confirm that the deficiency has been corrected and
approve the corrected work in writing.
Failure to correct any deficiencies within the timeframe specified by the City may,
in the City's sole discretion, result in action being taken by the City, including, but
not.limited to the following: written warnings, a deficiency fine of $250 per
incidence, a deficiency fine of $250 per day that the work deficiency is not
corrected, or the suspension or termination of the agreement. There will be a
graduated increase in the amount of fines for repeat violations of the same
nature.
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11. Proposal Information
The following is required information for submitting a proposal to the City of
Newport Beach for Residential Solid Waste Collection and Recycling Services in
Newport Coast. Three (3) bound or stapled copies of the Proposal should be
submitted, accompanied by a cover letter signed by the person with authorization
to execute a contract between the Contractor and the City. The letter should
summarize the key elements of the proposal.
1. Company Information
Please provide information about your firm, including corporate officers,
stockholders with greater than a 10% holding, mailing address, contact
information, and other useful information about your organization.
2. Related Experience
Please provide recent, directly related public agency experience involving fully -
automated solid waste and recyclable materials collection services. Include
specific .experience on achieving recycling goals (percentages) as mandated' in a
contract with a public agency. In information listing the name of the'agency;
description of services provided; primary agency contact, address and telephone
number, dates for the contract; and number of customers served. At least 5
(five) references should be included. For each reference, indicate the
reference's name, organization affiliation, title, mailing address, and telephone
number. The City of Newport Beach reserves the right to contact any of the
organization or individuals listed.
3. Fees /Cost Information
Please submit a fee. schedule for automated residential collection services.
Please note that the prices submitted in the fee schedule will be valid for one
year until a CPI -based fee increase will be allowed. Use the attached fee
schedule (Attachment 2) or create your own fee schedule. In Section A. please
state the monthly base fee that will be charged for regular collection services as
described in the scope of services. In Section B, please state the monthly
disposal fee that will be charged for all costs incurred with disposing and
recycling materials. In Section C,'please state the cost of providing an additional
96 gallon container at one single family residence. Please clearly specify any
other charges or fees, which would be part of your company policy, i.e., fees for
overloaded containers, material restrictions, etc.
Use the attached cost schedule (Attachment 3) to submit a total cost for
automated collection services. Using the monthly service fees provided in
Attachment 2, please calculate a total cost for each cost component for services,
"= including base fees, disposal fees, and additional refuse containers (not to
12
exceed 10% of total billed customers). Extra recycling containers shall be
provided at customers request at no additional cost to City. State the total cost
for monthly and annual cost for collection services.
4. Equipment List
All vehicles used for fully automated collection services must use an alternative
fuel approved by the South Coast Air Quality Management District. Provide the
make, model, age and type of collection vehicles to be used for automated solid
waste and recycling services. With the exception of bulk item collection
equipment, vehicles used for collection services must be fully automated side -
loading refuse trucks, using a fully mechanized arm to pick up and dump
automated waste collection containers. Drivers should not exit the vehicle to
assist with securing the container to, or lifting the container into the refuse
collection truck:
5. Employee Safety Training and Equipment Safety Records
Describe your organization's training and health and safety programs for your
employees. Describe employee response procedure when hazardous wastes
are encountered during collection activities. Include any employee manuals, as
appropriate.
Provide all equipment safety, BIT inspection, and CHP incident reports, records
or citations for 2005, 2006, and 2007.
6. Waste Collection/Recycling Plans
Describe the waste collection and recycling plans appropriate for the City of
Newport Beach, including collection times, routes, scheduled time of collections
and other policies and /or procedures. Fully describe how your company. will
meet the 40% curbside recycling requirement. Include the facility name and
address where the recycling materials will be delivered and sorted. Include type
of.permits for facility, i.e. certified to receive recyclable materials, household
refuse, etc. State the permitted total tonnage allowed (capacity) at facility per day
and current tonnage of materials received.
7. Implementation Plan
Provide an implementation plan describing the company's plan for facilitating a
smooth transition of services and, if applicable, a smooth transition between
service providers. The proposal must clearly demonstrate that the company has
the ability to implement the services including equipment, personnel,
administration, and maintenance requirements.
_I
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0
8. Financial Information
Submit an audited financial statement for the past three (3) fiscal years. Include
balance sheets and profit and loss statements, as appropriate. All financial
information submitted will be held confidential to the extent permitted by law.
9. Guarantees
Provide a letter from a surety stating your organization's ability to obtain a
performance bond in .the amount of one hundred percent (100 %) of six months of
the contract.
III. Evaluation Criteria
Proposals submitted to the City of Newport Beach for Residential Solid Waste
Collection and Recycling Services in Newport Coast will be evaluated by a
committee consisting of City staff and two to three elected officials. Proposal
evaluation will include, but riot be limited to:
• Responsiveness to the Request for Proposals
Previous Firm Experience with Fully Automated Residential Collection
Services
• Fee ScheduleslTotal Cost
• Waste Collection Recycling Plan
Note that the City of Newport Beach reserves the right to accept or reject any
proposal submitted for the residential solid waste collection and recycling
services. Fee schedules and costs will not be the sole criteria for award of this
agreement. Other criteria will be considered.
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Attachment 1
Map of Newport Coast Area, City of Newport Beach
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Attachment 2
Residential Solid Waste Collection Services
Per Residence Rate (Based on Weekly Collection Service)
A. Monthly Base Service Rate Per Residence
Based on 1 (one), 96 gallon trash container. $
and 1 (one), 96 gallon recycling container
B. Monthly Disposal fee Rate Per Residence
Based-on 1 (one), single family residence; $_
C. Monthly Rate Additional Container Fee Per Residence
Based on 1 (one), 96 gallon trash container. $
it.
Attachment 3
Residential Solid Waste Collection Services
Total Cost for Services
A. Base Service Charge
Monthly Base Service Rate Per Residence:
Single Family Households:
Total Cost, Monthly Base Service Rate:
B. Disposal Service Charge
Monthly Disposal Service Rate Per Residence:
Single Family Households:
Total Cost, Monthly Disposal Service Rate:
C. Additional Container Service Charge
4,000
4,000
Monthly Additional Container Service Rate Per Residence: $
Additional Containers: 400
Total Cost, Monthly Additional Container Service Rate: $
Total Monthly Cost (A +B +C): $
Total Annual Cost: $
17
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GENERAL SERVICES ICES DEPART19 ENT
Mark Harmon, Director
June 22, 2007
Re: Addendum #1 to Request for Proposal —
Fully Automated Residential
Solid Waste Collection and Recycling Services in Newport Coast
Franchised Solid Waste Hauler:
Please read below for changes to the Request for Proposal for Residential Solid
Waste Collection Services in Newport Coast:
1) Paoe 2- All references /requirements of a 96- gallon container are
changed to a requirement of containers not less than 90- gallon in size.
2) Page 3- Section 3: Award of Contract date is changed from July 24, 2007,
to July 10, 2007.
3) :iPage. 4- Section 6: First sentence under Negotiation Period; date is
changed from July 24, 2007, to July 10, 2007.
4) Page 4- Section 6: Second sentence under Negotiation Period should
read: "During this period, parties will have the ability.to negotiate service
level terms of the agreement as discussed on pane 10, with the exception
of cost per unit."
5) Page 7- Section 5: Fee Increases- add to this section: Landfill Rate
Increases- In the event of an Orange County Landfill fee increase, the
contractor may apply to the City for an increase in the disposal portion of
the overall rate charged to the City, The City reserves the right to audit
the contractors request including review / verification of contractor's landfill
records and tonnage reports, and make a final determination -on the
amount of increase, if any.
i - - 3300 Newport Boulevard • Post Office Box 1768 • Newport Beach, California 92658 -8915
Telephone: (949) 644 -3055 • Fax: (949) 650 -0747 • www:city.newport- beach.ca.us
6) Page 11- Add the following section:
13. Auditing Requirements
The contractor will be responsible for any cost incurred by the City to audit
facility recycling records, diversion statistics, landfill rate increases, vehicle
records, and any other verification necessary to insure full compliance with
the contract. It is anticipated that the City will hire a consultant to verify
stated waste diversion numbers.
r
7) Page 13- Change the last line in Section 5 to read:
"Provide all equipment and terminal safety and inspection reports,
including, BIT Inspections, CHP incident reports, citations issued, OSHA
300 reports, and LEA inspection/compliance reports received during 2005,
2006, and .2007. Reports should cover all Orange County facilities and
equipment servicing accounts within Orange County, or any
equipment/facility'in any jurisdiction that will operate in the City of Newport
Beach per the terms of the proposed contract.
Please sign and date the attached form and include it with your bid proposal.
Should you have any questions, please contact Chris Marcarello at (949) 644-
3057.
ADDENDUM No. 1
CITY OF NEWPORT BEACH
April 11, 2007
Request for Proposal
Residential Solid Waste Collection and Recycling Services in Newport Coast
Notice is hereby given that certain sections contained in the above referenced
Request for Proposals are being amended, clarified, and /or deleted and are
identified as Addendum No. 1 and attached hereto.
THEREFORE: All proposers are required to note this Addendum No. 1, sign this
page, and submit this page with their sealed proposal.
Signature Date
Name, Title
Company Name
"This form must be included with your bid proposal packet.