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CC - Item 6A - Consolidated Disposal Contract Evergreen ClauseROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: OLIVER CHI, CITY MANAGER 4Qp ?;_ DATE: FEBRUARY 12, 2008 SUBJECT: CONSOLIDATED DISPOSAL CONTRACT EVERGREEN CLAUSE SUMMARY On January 22, 2008, the City Council discussed the City's contract with Consolidated Disposal Services for trash and recycling collection services. While discussing this item, the Council reviewed several terms included in the contract, including service levels, the evergreen provision included in the agreement, collection rates, AB 939 indemnification, and the City's participation in the Los Angeles Regional Agency consortium. Staff has researched these items and this information is summarized below for the City Council's review. Staff Recommendation Staff recommends that the City Council provide staff with further direction regarding the City's refuse collection contract and collection service levels. DISCUSSION The City's contract with Consolidated includes several service level provisions for trash collection. Some of the service levels include collection frequencies (day /time of collection, number of cans a house can put out), collection programs (recycling requirements, bulk item collection program, commingled recycling program), and customer service requirements (billing functions, call centers, senior discount programs). The City's Trash Collection Contract with Consolidated The original contract with Consolidated was first approved in 1991 for a five -year term. Since then, the contract has been amended three times to change terms and service levels. On June 5, 1996, the City Council approved the second amendment with Consolidated. Terms changed in this amendment included changing the annual rate increase provision, adding an "evergreen clause' to the contract, adding indemnification provisions from state mandated recycling requirements, and automating the residential collection program, among other changes (Attachment 1). APPROVED FOR CITY COUNCIL AGENDA: D City Council Meeting February 12, 2008 Page 2 of 4 Residential Rate Structure /Comparison to Local Cities Each year HF &H Consultants, a statewide solid waste consulting firm, conducts a survey of Los Angeles County cities to compare service levels and rate structures. In its 2007 survey (Attachment 2), HF &H listed the City of Rosemead as having the 26th lowest residential collection rate among 88 reporting cities. With Consolidated's recent fee increase (current rate of $17.16 per household per month for residential services), Rosemead would actually rank 29'h out of the 88 surveyed cities. It is important to note that a rate comparison alone does not yield a true apples to apples comparison. Each solid waste contract is different and can produce a different resultant cost. Most cities require different service level provisions in their solid waste agreements, not limited to: • Guaranteed diversion rates for collected materials • The use of alternative fueled vehicles in collection activities • Automated greenwaste recycling programs • Franchise fees to offset the wear and tear caused by trash trucks on City streets • Personnel to assist in developing recycling programs for residents • Competitive, non - exclusive franchise systems for commercial accounts These provisions play a significant role in a City's rate structure. Each City must determine its own mix of service levels to best fit the need of the City and its residents. Solid Waste Contract Evergreen Clause An evergreen clause is a contractual provision that allows a contract to be automatically renewed unless given notice by one of the contracting parties. This clause can be beneficial for both sides of a contract including locking in prices for an extended period of time, guaranteeing a revenue stream, or ensuring continuity in services, among others. Although evergreen clauses allow a contract to continue indefinitely, they can still be renegotiated at any time, just like a contract with a definite term. This can benefit parties if a new technology is released that will make existing technology obsolete. For example, a business enters into an evergreen contract with a consulting firm to provide computers. Should a new, more advanced computer be developed, the business can still negotiate with the consulting firm to obtain the newest computer system. According to the 2007 HF &H solid waste report for Los Angeles County, out of 72 cities, 21 cities (29 %) have evergreen clauses and 51 cities (79 %) do not have evergreen clauses in their solid waste contract. AB 939 Indemnification /Los Angeles Regional Agency (LARA) Since 2004, the City has participated in LARA, a consortium of 16 Los Angeles County 0 0 City Council Meeting February 12, 2008 Page 3 of 4 cities that work together to meet statewide recycling requirements. Language in AB 939 provides that cities may be fined up to $10,000 per day for non - compliance with the state's 50% diversion requirement. Based on the City's current diversion rate of 26 %, it is likely that the City Of Rosemead would face significant penalties without membership in LARA. With LARA, the City of Rosemead is able to pool its diversion rates with other member cities that have higher diversion levels. These rates are then reported as one overall diversion rate to the State Waste Board. With its membership in LARA, the City is able to avoid possible penalties associated with AB 939. The City's contract with Consolidated also includes an AB 939 indemnification provision to help remove potential liability. This provision helps protect the City but is substantially offset with the City's participation in LARA. If LARA (and its 16 member cities) is not able to meet the 50% diversion rate mandated by the State, the group as a whole is held accountable. This plays a much greater role than the indemnification provision to reduce potential exposure associated with AB 939. Membership in LARA is approximately $10,000 per year, which provides City staff with access to LARA professional staff, uses economies of scale to purchase outreach materials, and provides a forum for discussing pending legislation and new recycling programs. For smaller cities, LARA provides a wealth of resources at a very low price. Future Direction The evergreen clause in the City's agreement with Consolidated grants a one -year extension each year so that the term of the agreement remains constant at five years. Per Section "O" in the second amendment, "should either party desire that said automatic one -year renewal and extension term be terminated, such party may give the other written notice of such not later than May 1 of any year of the Agreement. Such notice will terminate the automatic one -year renewal and extension provision, and the Agreement shall remain in effect for the balance of the term outstanding." This clause is valid subject to all other conditions contained in Section "P" of the original agreement between the City and Consolidated. It is important to note that terminating the evergreen provision will not affect any other provision in the City's contract. The only change that will occur is related to the contract term. Instead of lasting indefinitely, the City will conduct a competitive procurement for trash collection five years from now. Over the past several months, staff has met with representatives from Consolidated to discuss the City's trash collection contract. In December, staff informed Consolidated that the City Council was interested in further discussing the evergreen provision and further evaluating the City's trash collection program. Should the City Council desire, staff will prepare a letter to Consolidated explaining the City's intention to end the evergreen provision and give notice to bid services in five years. City Council Meeting February 12, 2008 Pace 4 of 4 FINANCIAL REVIEW Not applicable ENVIRONMENTAL REVIEW Not applicable LEGAL REVIEW This staff report has been reviewed and approved by the City Attorney. Pre ared k"ZLv ( I Chris Marcarello Administrative Services Officer Subm ted Bri Saeki Assistant City Manager Attachments: (1) City's Agreements with Consolidated (Original, First, and Second Contract Amendments) (2) 2007 Solid Waste Study Prepared by HF &H Consultants • EXCLUSIVE REFUSE COLLECTION AND RECYCLING FRANCHISE AGREEMENT THIS AGREEMENT is made and entered into effective, the 1st day of August, 1991, by and between the CITY OF ROSEl`4EAD, a municipal corporation, hereinafter referred to as City, and CONSOLIDATED DISPOSAL SERVICE, Inc., hereinafter designated as Contractor. The City and Contractor agree each A�th the other that, for a period of five (5) years from after the 1st day of August, 1991, the Contractor shall have sole right to collect, haul and dispose of all refuse and conduct a comprehensive recycling program in the City of Rosemead in accordance with the following terms and conditions: A. DEFINITIONS 1. City shall mean.the City of Rosemead, California. ?. City Attorney shall mean the Rosemead City Attorney. • �. City Clerk shall mean the Rosemead City Clerk or her authorized designee. 4. City Council shall mean the Rosemead City Council, 5. City Manager shall mean the Rosemead City Manager or his authorized designee. 6. Contractor shall mean Consolidated Disposal Service, Inc. 7. Handicapped shall identify a person who satisfies the Department of Motor Vehicles requirements for the issuance of a handicapped parking permit. S. H.D.P.E. plastic shall mean high density polyethylene such as milk jugs, liquid detergent and motor oil bottles. 9. P.E.T. plastic shall mean poly - ethylene terephtalate such as plastic soft drink bottles. 10. Recyclable material means any one or more of the following categories of materials collected and recycled from within the City: A. Newspapers; • B. Aluminum cans; • C. Glass; • D. P.E.T. and H.D.P.E. plastic containers; and E. Such other materials, as, from time to time, as may be commercially reasonable to collect and reuse. 11. Refuse shall mean "garbage" and "combustible and non - combustible rubbish ", "miscellaneous debris" and "combined rubbish" as those terms are defined in Chapter IV, Article V of the Rosemead Municipal Code. 12. Resident shall mean the owner, occupant, tenant or manager of private residential property or other use of private residential property. 13. Senior Citizen shall mean a customer who is at least 62 years old. 14. Tipping charges shall mean the per ton charges, including any surcharges, imposed by the Los Angeles County Sanitation District, for dumping waste. B. WORK TO BE DON • The work to be done under this Agreement shall include the furnishing of all labor, material, equipment and expenses necessary to perform the following minimum services: 1• Collection, hauling and disposal of refuse from the premises of any and all residents and businesses in the City, at the regularly scheduled intervals, and at the rates as provided herein. Said work shall include regularly scheduled pick -up of refuse once a week from curb or alley. Contractor shall also provide regularly scheduled and one -time special container (bin) service to any residence requesting such service. I Collection from City facilities as follows: (a) City Hall - Contractor shall, at no charge, furnish sufficient bins and shall Pickup and remove the contents of said bins on a schedule approved by the City Manager. 0 0 • (b) Parks and Recreation Department - At the Community Center, Zapopan Park, Garvey Park, Rosemead Park and the City Maintenance Yard, Contractor shall, at no charge, furnish'sufficicnt bins and shall pickup and remove the contents of said bins on a schedule approved by the City Manager. (c) City Litter /Trash Receptacles - City ovens approximately 32 litter and trash barrels, located on the sidewalk at fixed locations on major streets. A listing of these trash receptacles was provided on Exhibit "E" to the request for proposals, which is incorporated herein by this reference. Contractor shall empty and remove the contents of said receptacles throughout the City not less than three (3) times per week on a schedule approved by the City Manager. Contractor shall replace the barrel liners at no cost to City. Contractor agrees to pick up, on these terms and conditions, any additional litter and trash barrels acquired by the City up to a maximum of 18 additional barrels (a total of 50), during the term of this Agreement. 3. The Contractor shall not be required to remove waste building materials and other waste materials from the construction, alteration, repair, and moving or demolition of buildings. However, owners and tenants of residential premises may put out waste materials for collection by the Contractor if the alteration of repair work is performed individually by the owner or tenant. • 4. Unless otherwise directed by the City, the Contractor shall dispose of all collections at a site located outside of the City limits. 5. All work required of the Contractor shall be done in a thorough and workerlike manner to the satisfaction of the City. C. LOCATION OF COLLECTIONS Collection of residential refuse will be made either at curbside or backyard (in the case of qualified handicapped residents). D. COLLECTION HOURS AND DAYS • 1 Unless the City Council determines otherwise, the collection of residential refuse in the City shall be confined to Monday through Friday between the hours of 6:00 a.m. and 4:00 p.m. Collection may be made on Saturday if a holiday occurs within the preceding six (6) days. Collection of commercial accounts on Saturdays shall be scheduled so as to not disturb residential neighborhoods. 3 2. If, in the judgment of the City Manager, conditions warrant a temporary departure • from the regular days and hours of collection, the City Manager may authorize collection of refuse on such days and during such hours as he deems appropriate. Any permanent changes to the collection schedule must be approved by the City Council. 3. To the extent reasonably possible, collections on each route shall commence at the same point, at the same time and follow the same route each time collections are made. 4. The Contractor shall provide sufficient workers and equipment to complete within one day the collection of all refuse placed for collection in any mutually agreed upon collection district within the City on the given collection day. E. COLLECTION SCHEDULE 1. The schedule of collections shall be subject to the approval of the City Manager. The Contractor shall prepare and file with the City Manager a collection schedule, together with a complete map of the refuse collection districts within the City. He shall indicate thereon in an appropriate and easily understandable manner the days on which collections shall be made. • 2. The collection schedule, when approved by the City Manager, shall be maintained unless a change therein is first approved, in writing, by the City Manager. • 3. Prior to the start of any new Collection schedule, as approved by the City, the Contractor shall, at his own expense, by written notice with postage prepaid and forwarded through the United States mail or by personal service, notify each customer of the day or days of the week on which refuse shall be collected. The notice shall contain the day or days of the week upon which collections will be made, the name, address and telephone number of the Contractor, and other information deemed necessary by the City Manager. Said notice shall be posted in the mail or by personal service to customer served not less than fourteen (14) days prior to the change of collection schedule. The Contractor shall also cause a schedule of collections to be published twice in a newspaper of local circulation once each week for two successive weeks immediately prior to the change in the collection schedule in a district. The published schedule shall contain the same information as the written notice outlined above, and shall clearly indicate the precise area involved in the change. 4. For any given roadway, collections on both sides of the roadway shall be made on the same day. 0 F. COLLECTION RATES AND BILLING • 1. The City and Contractor, as part of this agreement, fix and determine uniform rates that shall be charged by the Contractor for the collection and removal of refuse. The rates thus fixed and determined shall remain in effect for the period prescribed or until changed pursuant to the provisions hereof. The Contractor shall not charge or collect any fees or rates other than the fees or rates thus fixed and determined. 2. The City Council shall, not more frequently than once per year, authorize a rate adjustment by application of the following formula and procedure to the then current rates: Contractor shall be entitled to no rate increases whatsoever until the first anniversary of the franchise (August 1, 1992). Effective August 1, 1992 and on subsequent anniversary dates during the term hereof, Contractor shall be entitled to a rate adjustment based upon the following formula: .75 x increase in Consumer Price Index, All items, 1982 -84 = 100 (Los Angeles- Anaheim- Riverside) from the base month (commencing June, • 1991) to the following year's comparison month (June, 1992; June, 1993; June, 1994; and June, 1995) plus .25 x the percentage change in tipping fees to arrive at the percentage adjustment to be applied to all rates herein authorized, PROVIDED HON'VEVER that Contractor and City agree that anv increase authorized by the aRplication of this formula shall be limited to no more than a total of five percent (5 %) for the scheduled rate adjustments effective August 1 1992 and August I 1993. Allowable adjustments, based upon tipping fees, shall be based upon the rates at the Los Angeles County Puente Hills landfill as established by the Los Angeles County Sanitation District. Example: FACTOR % CHANGE PERCENT OF TOTALS OVERALL COSTS CPI 4.70% X .75 3.525 Tipping fees 10.00% X .25 2.500 Adjustment percentage 6.525 5 0 • • Thus, the otherwise allowable adjustment percentage of 6.525010 is limited by the overall cap of five percent (5 17o). Contractor and City further agree that any allowable rate adjustments in the fourth and fifth years of the franchise shall be based upon the rates effective August 1, 1993• and August 1, 1994 respectively. Contractor shall not be entitled to any increases to make up for otherwise allowable increases in the first three years that were limited by the five percent (57o) cap. 3. The Contractor shall not make or grant any preference or advantage to any person, nor subject any person to prejudice or disadvantage with respect to rates, fees, charges, service, facilities, rules, regulations, or any other respect. Contractor. is specifically authorized to charge a Senior Citizen Hardship rate and a Handicapped rate for those accounts who meet the following eligibility criteria: A.. SENIOR CITIZEN HARDSHIP RATE - Those customers, aged 62 and over, who meet the following income limitations, shall be entitled to the Senior Citizen Hardship Rate as listed in this Agreement: Single Income not to exceed 5985 per • month Family (2 or more) Income not to exceed $1,971 per month L� Contractor is authorized to require proof of age and an affidavit of eligibility signed by the customer. The 'hot to exceed" income levels listed above shall be increased to reflect cost of living adjustments on August 1 each year of the franchise. B. HANDICAPPED RATE - Those customers, who meet the eligibility requirements of the Department of Motor Vehicles for issuance of a handicapped parking permit, shall be entitled to backyard service, at the regular residential rate. If the handicapped individual also qualifies for the Senior Citizen Hardship Rate, he or she shall be entitled to backyard service at the Senior Citizen Hardship Rate as listed in this Agreement. 0 0 • 4. Except as otherwise provided herein, Contractor will bill each customer directly • for service and will collect from such customer for same. City shall not be responsible for collection or payment for such services. �• Contractor may not suspend its collection and disposal services hereunder to a customer who has failed to pay a proper billing for services. Contractor shall make all reasonable efforts to diligently pursue and collect all fees and charges due Contractor for rendering such services. In the event of ,a delinquency, the Contractor shall also notify the owner of the real property of the amount of the delinquency and the possibility of property tax lien collection. Contractor shall provide to City, not more frequently than quarterly, individual letters, postage prepaid, which contain the names of the property owner and occupant (if different from the owner), the address of the owner as shown on the latest updated assessment roll, including the assessor's parcel number and whatever other information is required by the Los Angeles County Tax Collector. Said letters shall state the amount of delinquency, penalties, late charge(s) and collection costs. City shall allow Contractor to use the update assessment roll records available at City Hall. City allows such use as an accommodation only and does not warrant the accuracy of such records. The only responsibility of the City pertaining to notice of and public hearing shall • be as follows: The City Manager or his designee shall notify property owners by sending the letter designated in the paragraph next above. Such notice shall further declare that the City Council shall at a regular meeting, review and approve as an assessment against the property the amount delinquent and unpaid, the amount of the penalty and late charge(s), collection costs, including administrative costs incurred. If the total assessment determined and approved by the City Council is not paid within ten (10) days after such determination, then and in that event, there shall be recorded in the Office of the County Recorder a statement of the total balance due together with the legal description of the property affected. From and after the date of such recordation, the balance due shall be a special assessment against the real property. The assessment shall be collected at the same time and m the same manner as are county property taxes and shall be subject to the same penalties and to the same procedure and sale in cases of delinquency as provided for other taxes and assessments appearing on the county property tax bill. All laws applicable to the levy, collection and enforcement of county taxes shall be applicable to such special assessment. Contractor shall be paid the amount actually recovered by the City on an unpaid account less 10% (ten per cent). Said payment to Contractor shall be made within thirty (30) days of the City's receipt of funds. u 7 • 6. The Contractor shall obtain the written approval of the City Manager as to the billing periods used. 7. Each bill shall contain the name, address, telephone number and office hours of the Contractor, the amount and period being billed, a statement that the Contractor will provide, upon request, a complete list of the rates for the various types of services provided by the contractor, a statement indicating how to file a complaint and how complaints are resolved, as well as the possibilities of recourse available to customers, the holiday schedule, and any other information necessary to assist residents as determined by the City Manager. At least 30 days prior to any rate change, the Contractor shall mail all customers notice of said rate change. G. OFFICE. INQUIRIES AND COMPLAINTS 1. The Contractor shall maintain telephone listings in the directories of the telephone companies servicing the City in the name by which the firm is most commonly known. ?. The Contractor shall have at all times during the hours between 6:00 a.m. and 5:00 p.m., Monday through Friday, an employee at the Contractor's office to answer inquiries and to receive complaints. • 3. The Contractor shall maintain a written record of all complaints received, including the name and address of the customer, a description of the complaints, the time the complaint was received, the action taken in response to the complaint, and the time the responsive action was taken. The record shall be kept at the Contractor's office, and shall be available for inspection or duplication at all reasonable times by the City Manager or his designee. • 4. In the event that any customer reports to the City Manager that a complaint or claim for a damaged container has not been resolved to the customer's satisfaction, the City Manager may require the Contractor to present a detailed report outlining the nature of the complaint and remedies proposed or action taken to resolve said complaint or claim. If it is the opinion of the City Manager that the Contractor's remedies proposed and action taken are insufficient to adequately resolve the said complainant claim, the City Manager may require the Contractor to carry out an alternative remedy process intended to resolve the complaint or claim, Said remedies will be carried out at no cost whatsoever to the City, unless otherwise specified by the City Manager. 5. The Contractor shall maintain a location, within the City of Rosemead, where bills may be paid and service changes may be initiated. E H. VEHICLES AND EQUIPMENT 1. All trucks and other equipment used to collect, haul or dispose of refuse shall at all times be kept clean, in good repair, and well and uniformly painted, to the satisfaction of the City Manager. Contractor shall utilize the equipment specified in its proposal unless the City Manager approves in advance and in writing, equipment substitutions. ?. Each truck shall be constructed, used and maintained so that refuse, oil or grease will not blow, fall or leak out of the truck onto the street. All refuse shall be transported by means of vehicles equipped with water -tight bodies fitted with close fitting metal covers. Should any refuse be dropped or spilled in collecting, transferring or transporting, it shall be immediately cleaned up. A broom and a shovel shall be carried on each truck at all times for this purpose. Contractor shall be notified of and given a reasonable opportunity to cleanup any such spills before the City incurs expenses for such cleanup. All expenses incurred by the City in the collection and disposal of any such spilled or dropped refuse shall be paid to the City, on demand, by the Contractor. 3. All refuse- conveying truck or trailer bodies shall be cleaned thoroughly by flushing wgth water after each day's use. • 4. The Contractor's name and telephone number shall be painted on each side of the body of each truck. The letters shall be in a color contrasting sharply with color of the truck, and shall not be less that six (6) inches in height and four (4) inches in width. �. The brake system of each vehicle used for collecting, hauling or disposing of refuse in the City shall be inspected and certified twice each year by the California Highway Patrol or by a brake inspection station licensed by the California Highway Patrol. Notice of such certification shall be filed with the City Manager each August and February. Failure to submit required notice of such certification may be grounds for terminating this Agreement per the procedure outlined in Paragraph P - Termination. 6. Each vehicle of three (3) or more axles used for collecting hauling or disposing of refuse in the City shall be maintained in conformance with the Motor Carrier Safety Regulations set forth in Title 13 of the California Administrative Code (Motor Vehicles). 7. The City Manager may cause any vehicle used for collecting, hauling or disposing Of refuse. in the City to be inspected and tested at any time and in such manner as may be appropriate to determine that such vehicle is being maintained in compliance with the provisions of the Rosemead Municipal Code and the • 9 • . •. California Vehicle Code. • 8. The City Manager may authorize the removal of any vehicle from'service if said vehicle is found to be in non - conformance with the Rosemead Municipal Code or the California Vehicle Code. Vehicles shall not be returned to service until duly authorized by the City Manager. 9. Each vehicle used for collecting, hauling or disposing of refuse shall be equipped with an audible warning device that is activated when the vehicle is backing up. 10. No vehicle used for collecting, hauling or disposing of refuse shall be loaded in excess of the manufacturer's gross vehicle weight rating or in excess of the maximum weight specified by the California Vehicle Code, whichever is less. Evidence of the manufacturer's name and gross vehicle weight rating shall be maintained in, or upon, every vehicle. I. REFUSE CONTAINERS 1. All refuse containers shall be replaced, upright, with the lids immediately beside the containers. Containers and lids shall not be placed or thrown on the streets, alleys, highways, or on adjoining property. • ?. The Contractor, his agents and /or employees, shall not throw refuse containers from the truck to the pavement or parkway, shall not cause damage by striking them against the truck to dislodge contents, or in any other way break or damage or roughly handle the same. 3. All claims for damage of containers by reason of the misuse or rough handling of said containers by the Contractor, shall be presented to the Contractor by the resident. The Contractor shall make a decision concerning settlement within 48 hours of receipt of such claims. 4. Any refuse container which will no longer hold refuse without spilling, which leaks or is not water tight shall be replaced by the person from whom refuse is collected, within ten (10) days after notice from the Contractor stating the condition of such container. Such notice shall be made by attaching a tag to such container and indicating thereon the defective condition thereof. S. The Contractor shall collect and dispose of all cardboard boxes used for the collection of refuse. 6. The Contractor shall provide large capacity, containers (bins) for mechanical loading wherever customers so request their use, and the use thereof shall be in accordance with the rates established herein. Each container provided shall have • 10 • the Contractor's name, or company name, placed and maintained on one or more locations on the outside in letters not less than three (3) inches in height. The Contractor shall regularly inspect all large capacity containers, repair or replace any damaged containers, and maintain an inventory need to meet the demand of customers. All such containers shall be maintained by Contractor so as not to leak. All such containers utilized in Rosemead shall feature tight - sealing lids (the Balanced Lid Systems (or equivalent) bins specified in Exhibit D to the Contractor's proposal) 7. Residents electing to use large capacity containers for mechanical loading shall use such containers exclusively and shall place such container for pickup where they are readily accessible to the Contractor's equipment. 8. The Contractor shall provide sufficient workers and equipment so as io limit the time that the bins are placed in the public right -of -way, to a maximum of three (3) hours. J. STATUS OF REFUSE All refuse collected pursuant to this Agreement shall be deemed to be the property of the Contractor, as of the time the same is received by it, unless otherwise directed by the City Council of City, in its sole discretion. In the event the City's directions regarding • disposal transfer or processing increases Contractor's costs, Contractor shall be entitled to a rate increase to recoup these costs. City shall be authorized to require complete financial data, which demonstrate conclusively the additional costs, before approving such a rate increase. K CONTRACTOR'S NTAN4E The Contractor shall not use the words 'Rosemead ", "City ", "Municipal ", "Community' or other like words in his corporate name or on his equipment. L. PERFORMANCE BOND 1. Upon being awarded approval for the collection, removal and disposal of refuse in the City, the Contractor shall file with the City Clerk and shall thereafter during the entire term of the Agreement maintain in full force and effect a corporate surety bond or other adequate surety agreement in a form satisfactory to the City Attorney in the amount of Three Hundred Thousand Dollars ($300,000) for the Contractor's faithful performance of this agreement. ?• Said bond shall be so conditioned that in the event that the Contractor shall fail to comply with any one or more of the provisions of the Agreement, then there shall he recoverable jointly and severally from the Contractor and surety any • 11 damages or loss, or costs suffered or incurred by the City as a result thereof, including attorney's fees and costs of any action or proceeding, and the full amount of any compensation, indemnification, cost of removal or abandonment of any property or other cost which maybe in default, up to the full principal amount of such bond. 3. Said bond shall not be canceled, altered or allowed to lapse without at least thirty (30) days' prior written notice to the City Clerk by the surety. 4. Failure to file or maintain such a bond shall be deemed a breach of the Agreement, and shall be grounds to terminate the Agreement by the City Council. M. INSURANCE I Contractor shall concurrently furnish to the City and file with the City Clerk, and at all times during the existence of any franchise granted hereunder, maintain in full force and effect, at its own cost and expense, a general comprehensive public liability insurance policy, including coverage for premises - operations, explosion and collapse hazard, underground hazard, contractual insurance, broad form property damage, independent contractors; personal injury and comprehensive automobile liability, comprehensive insurance in protection of the City, its officers, boards, commissioners, agents and employees, with a company approved by the ® City Manager in a form satisfactory to the City Attorney, protecting the City and all persons against liability for loss or damage for personal injury, death and property damage, occasioned by the operations of the Contractor under this Agreement with a minimum of not less than Five Million Dollars ($5,000,000.00) combined single limit for bodily injury, including accidental death and property damage. • 2. The City, its officers, boards, commissions, agents and employees shall be named .as an additional insureds in any of said insurance policies. Where such insurance is provided by a policy which also covers Contractor or any other entity or persons, it shall contain the standard cross - liability endorsement. Such policies shall contain a provision that a A,Titten notice of cancellation or material alteration in coverage of said policy shall be delivered to the City Clerk thirty (30) days in advance of the effective date thereof. Said insurance Policy shall contain the following endorsements: (a) The naming of an additional insured, as herein provided, shall not affect any recovery to which such additional insured would be entitled under this policy if not named as such additional insured; and 22 (b) The additional insured named herein shall not be held liable for any premium or expense of any nature on this policy or any extension thereof-, and (c) The additional insured named herein shall not; by reason of being so named, be considered a member of any mutual insurance company for any - purpose whatsoever; and (d) The provisions of the policy will not be changed, suspended, canceled or otherwise terminated as to the interest of the additional insured named herein without first giving such additional insured thirty (30) days written notice; and (e) Any other insurance held by the additional insured shall not be required to contribute anything toward any loss or expense covered by the insurance which is referred to by the certificate. 3. Failure to file or maintain said policy of insurance shall be deemed a breach of the Agreement, and shall be grounds to terminate the Agreement by the City Council. N. CITY HELD HARMLESS ® Contractor shall indemnify and hold harmless the City, its officers, boards, commissions, agents and employees against and from any and all claims, demands, causes of actions, actions, suits, proceedings, damages; costs and liabilities (including costs on liabilities of the City with respect to its employees) of every kind and nature whatsoever including, but not limited to, damages for injury and death, or damage to persons or property, and regardless of the merit of any of the same, liability for environmental cleanup or response costs related to the hauling and disposal of the waste and or recyclable materials that are the subjects of this agreement, and against all liability to others and against any loss, cost and expense resulting or arising out of any of the same including any attorney fees, accountant fees, expert witness or consultant fees, court costs, per diem expense, traveling and transportation expense or other cost or expenses arising out of, or pertaining to, the exercise or the enjoyment of this Agreement whether such performance be by the Contractor, his sub- contractor, or anyone directly or indirectly employed by him, and whether such damages accrue or are discovered before or after termination of this Agreement. O. AGREEMENT TERM AND RENEWAL 1. The Contractor shall have the exclusive right to collect, haul and dispose of all refuse within the City for a period of five (5) years from the effective date of this Agreement. 13 2 The Agreement may be renewed for successive five -year periods or any lesser period if the City and the Contractor both consent thereto in writing. Contractor's request for renewal must be submitted no sooner than 3 years and six months after the effective date of this contract and no later than six months prior to the expiration date of the contract. The City may establish conditions for renewal and may require contractor to submit a detailed proposal describing requested terms of renewal and other pertinent information as deemed necessary by the City Council. This provision is not intended to confer any renewal rights to Contractor whatsoever. The City retains the option to seek additional proposals at the conclusion of this term. P. TERMINATION 1. In addition to any other remedy herein provided, or provided by law, the City, may terminate this agreement if the contractor is in default of any term or provision hereof, including the requirements that performance shall be in a workerlike manner and otherwise satisfactory to the City; provided, however, that before such right of termination may be exercised by the City, the City shall give to the Contractor written notice of such default, specifying the particulars in which the Contractor is in default, and if such default is cured and satisfactory service rendered by the Contractor as determined by the City, within 15 days after such written notice, the agreement shall not be terminated by the City. During the 15- • day period, the contractor may request a hearing before the City Council and submit evidence in accordance with Section 2 below or any other information showing that no default has occurred. The City Council shall afford Contractor a due process hearing during which it considers all pertinent information before its final determination regarding termination or other remedies. • 2. Acts of God or acts of other persons or combinations thereof over which the Contractor does not have control are not subject to complaint as matters of unsatisfactory or failure of performance by the Contractor. The Contractor is responsible to show evidence of these conditions to the satisfaction of the City. 3. In the event the Contractor shall for any reason become unable to or fails in any way to collect or remove refuse as provided herein, and Contractor is determined to be in default of its contractual obligations after the opportunity for hearing before the City Council, the City may declare the amount of the performance bond described herein forfeited to the City. 4. Should this Agreement be terminated for any reason, all accounts receivable records and route records shall immediately become the property of the City. 14 • d. In the event of termination of this Agreement due to breach by the Contractor, Contractor shall be liable to the City�for all loss, damage or expense for which the City may become liable or indebted to provide replacement service to its residents and businesses. 6. In the event Contractor is not awarded an agreement to continue to provide the services required by this Agreement, at the end of the term hereof, or upon termination for cause prior to the end of the term hereof, then Contractor shall cooperate fully with City and subsequent Contractor to assure a smooth transition. Such cooperation shall include, but not be limited to, the following: A. Providing current and historical records as requested by the City on customer billing (providing computer tapes of all accounts); and B. Maintaining and providing to City as requested Accounts Receivable; and C. Providing operating records needed to provide service to all properties in City (both equipment and staffing requirements). • Q. REPORTS REQUIRED 1. The Contractor shall provide the City Manager, at the times and in the form prescribed by the City Manager, such reports with respect to the Contractor's operations as may be reasonably necessary or appropriate to the performance of any of the rights, functions or duties of the City in connection with this Agreement. 2. Such reports shall include, but shall not be limited to the following, which shall be submitted to the City Manager no later than sixty (60) days following the City Manager's request for same: (a) A detailed and complete certified financial statement, of the Contractor, with an opinion prepared by an independent Certified Public Accountant, for the preceding fiscal year. (b) An up -to -date list of all vehicles used for collecting, hauling or disposing of refuse in the City including the make, type, year, license number, identification number and ownership. (c) The names, titles and addresses of the owners, officers, directors and stockholders of the firm. • 15 1 • (d) The names and titles of all employees used in providing refuse service for the City. (e) A description of all cases of property damage and personal injury that have occurred while providing refuse service for the City in the last three years. (f) A description of all traffic citations received in the past three years. (g) Workers' Compensation Experience Modification Factor for the current year. (h) Any reports required in association with Section G (4) of this Agreement. �. Within thirty (30) days after the end of each fiscal year, Contractor shall provide the City with a written report which shall include: (a) An accurate number of residents receiving curbside service. (b) The total number of multi - family units and number of multi -unit dwellings. (c) The total number of bins in use for both single- family and multi - family • units. V (d) The total number of bins in use for commercial accounts. (e) The total number of roll -off containers delivered and collected during the year. (f) Total tonnage of refuse collected. 4. The Contractor shall cooperate with and provide all information sought by City in connection with the preparation and implementation of the waste characterization study and its recycling and source reduction elements. R. WORKERS' COMPENSATION INSURANCE The contractor shall at all times keep fully insured, at his own expense, all persons employed by him in connection with the performance of this Agreement as required by the provisions of the labor code of the State of California relating to Worker's Compensation and insurance and shall hold the City free and harmless from all liability arising by reason of injuries of any employee of the Contractor incurred in course of employment hereunder. The Contractor shall file and maintain certificates with the City Clerk showing said insurance to be in full force and effect at all times during the course • 16 of the Agreement. No work shall be done by the Contractor during any period when he • is not covered by insurance as herein required. S. EQUAL OPPORTUNITY EMPLOYMENT In providing refuse service for the City, the Contractor shall not discriminate against any employee or applicant for employment because of race, creed, color, sex, national origin or physical handicap. 1. The Contractor shall take affirmative action to ensure such non- discrimination. 2. The Contractor shall post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this non - discrimination clause. 3. The Contractor shall, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, creed, color, sex, national origin or physical handicap. • T. RECYCLING 1. During the term of this Agreement, CONTRACTOR shall conduct a curbside residential recycling program'in the City of Rosemead. All residential dwellings on regular curb, alley and backyard service customers for trash pickup shall be part of the program. Such customers shall be provided a once -a -week pickup from curbside of newspapers, glass, cans, P.E.T. and H.D.P.E. plastic containers, placed for collection in the appropriate containers provided by the CITY. Contractor's fees for this service are included in the rates for residential trash collection. • Contractor shall provide a program for the separate collection of green waste. 17 • 2. RESIDENTIAL CUSTOMERS' RESPONSIBILITIES. A. Contractor shall deliver, at no additional cost to City or customers, to all residential dwellings on regular curb (i.e. all residences not on bin service) and to all residential, dwellings on backyard (handicapped) service two (2) plastic containers for the collection and placement for removal of recyclable materials (newspapers, glass, cans, P.E.T. plastic beverage containers and green waste as follows: 1 minimum 18- gallon container for commingled recyclable materials (glass, aluminum cans, plastic beverage containers and newspaper) 1 minimum 32- gallon container for green waste B. Residents shall place their recyclables and green waste, in the collection containers, at curbside (or backyard for qualified handicapped residents) on their regular scheduled day for trash collection. 3. REVENUE FROM SALES OF RECYCLABLE_ MATERIALS. Contractor shall maintain records of the amounts of materials collected • and sold and the revenue received for same. Contractor, in partial consideration for the services rendered hereunder, shall be entitled to retain seventy -five per cent (75 %) of the net revenue from the sale of recyclable materials. Contractor shall donate a minimum of twenty -five per cent (25 %) of the net proceeds from the sale of recyclable materials, collected in the City of Rosemead, to non - profit groups which have service programs in Rosemead and have actively participated in the City's recycling program. Contractor shall provide City with quarterly reports on the program revenue and donations made to community groups. 4. PROMOTION OF PROGRAM. i CONTRACTOR shall use its best efforts, in conjunction with CITY, to promote public awareness of and utilization of the program. Contractor shall provide the services of its Educational Resource Specialist as outlined in its proposal. U. ASSIGNMENT 1. Contractor shall not assign any portion of the duties to be performed by it pursuant hereto, to any person, without the prior written consent of the City being first obtained. The City shall not unreasonably withhold its consent to any such proposed assignment, provided that such consent shall not be deemed to have • 18 0 been unreasonably withheld if, after a reasonable investigation, the proposed • assignee is found by the City not to be financially responsible , or not possessed of sufficient experience or qualifications to perform the obligations of this Agreement. V. RIGHTS RESERVED TO THE CITY 1. At all reasonable times, the Contractor shall permit the City's authorized representatives to examine all property of the Contractor, and to examine and transcribe any and all records kept or maintained by the Contractor under his control which pertain to this Agreement. 2. Neither this Agreement nor any provision hereof shall constitute a waiver or bar to the exercise of any governmental right or power of the City. 3. The City Council may do all things which are necessary and convenient in the exercise of its jurisdiction under this Agreement, and may determine any question of fact which may arise during the existence of this Agreement. 4. The City Manager is hereby authorized and empowered to adjust, settle, or compromise any controversy or charge arising from the operations of the Contractor under this Agreement, either on behalf of the City, the Contractor, or • any customer in the best interest of the public. Either the Contractor, or any member of the public, who may be dissatisfied with any decision of the City Manager, may appeal the matter to the Council for hearing and determination. The Council may accept, reject, or modify the decision of the City Manager, and the Council may adjust, settle, or compromise any controversy or cancel any charge arising from the operations of the Contractor. W. LEGAL REQUIREMENTS & MISCELLANEOUS PROVISIONS 1. The Contractor shall obtain all permits and licenses required by the City, County, State and Federal Governments. The Contractor shall fulfill all reporting requirements to these agencies. 2. Contractor shall comply with all laws, ordinances, rules and regulations of the State, County, City, and all political subdivisions thereof having jurisdiction over work done or to be done under this Contract. Contractor must conform to and abide by all ordinances of the CITY and of the County and of cities through which waste and recyclables are to be hauled or wherein such waste or recyclables may be sold or stored. 3. To the extent not superseded by the specific provisions of this Agreement, the is Proposal for The Exclusive Collection, Removal and Disposal of Residential, 19 0 0 • Commercial and Industrial Refuse and An Integrated Recycling Program for the City of Rosemead, submitted by Consolidated Disposal service on March 15, 1991 and modified by correspondence from Consolidated Disposal Service dated April 3, 1991, April 17, 1991, April 25, 1991, April 26, 1991 and April 29, 1991. Copies of these documents are attached hereto, collectively referred to as Exhibit "A ", and made a part hereof by this reference. 4. The provisions of the Rosemead Municipal Code relating to refuse collection and disposal are hereby incorporated into and made a part of this Agreement, and whenever the provisions of the Code conflict with the terms of this Agreement, the terms of said Code shall supersede the provisions of the Agreement. 5. Time shall be of the essence of this Agreement. The Contractor shall not be relieved of his obligation to comply promptly with any of the provisions of this Agreement by any failure of the City to enforce prompt compliance. 6. All notices required to be given under this Agreement shall be given by placing such notices in the United States mail, postage prepaid, addressed as follows: in the case of notice to the City, City of Rosemead, City Hall, 8838 E. Valley Boulevard, Rosemead, California,. 91770 Attention: City Manager. In case of notice to Contractor, CONSOLIDATED DISPOSAL SERVICE, INC., 12235 Los NTietos Road, Santa Fe Springs, California 90670 Attention: John A_ Telesio, • President /CEO. 7. This Agreement shall be binding on, and accrue to the benefit of the heirs, executors, assigns and successors in interest of the parties hereto, subject to the Provisions of Section U above. S. In the event territory is annexed to the City, and if for the three (3) years immediately prior to such annexation, refuse collection services were provided by a refuse collector authorized to perform such services by the local agency having. jurisdiction over such territory prior to annexation, then such authorized refuse collector may continue to provide refuse collection service in the territory for up to five (5) years from the date of annexation. Under such circumstances, the annexed territory shall not be deemed a portion of the City for the purpose of this Agreement. If the refuse collector authorized to perform such collection services prior to annexation is the Contractor, then such territory may become a part of the City for purposes of this Agreement. 9. All disputes arising out of this Agreement shall be subject to binding arbitration, conducted in accordance with the provisions of this paragraph. In the event of a dispute concerning the provisions of this Agreement, City shall submit a list of not less than five (5) retired California Superior Court Judges it deems qualified to act as the arbitrator. Contractor shall select one of the retired judges who shall • 20 • act as the arbitrator. If the Contractor declines to accept any retired judge on the City's list, the then Presiding Judge of the Superior Court of Los Angeles County, or his or her designee, shall appoint a retired Superior Court Judge who shall act as the arbitrator. The decision of the arbitrator shall be binding on the parties and shall be enforceable as a final judgment of a court of competent jurisdiction. Costs of arbitration incurred pursuant to this section shall be borne equally by the parties. 10. Should litigation including arbitration be reasonably required to enforce any of the provisions of this Agreement, the prevailing party in such litigation shall be entitled to receive an award of the attorney's fees in such amount as may be set in the discretion of the court or arbitrator. The provisions of this paragraph shall survive the termination of this Agreement. 11. Contractor shall provide Cardio- Pulmonary Resuscitation (CPR) training to its on- street personnel who serve Rosemead. X. SEVERABILITY If any section, subsection, sentence, clause or phrase of the Agreement is for any reason held illegal, invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions hereof. • Y. EFFECTIVE DATE • This Agreement shall become effective and operative on August 1, 1991, and on said' date shall supersede all prior agreements heretofore executed by and between the parties concerning any portion of the subject matter hereof, and shall operate as a discharge of all obligations incurred by either party under any agreements thus superseded. Z. RATES RATE STRUCTURE - EFFECTIVE AUGUST 1, 1991 1. SINGLE FAMILY DWELLINGS - RESIDENTIAL CURBSIDE SERVICE Monthly cost per unit for regularly scheduled weekly curbside collection and disposal of residential /household waste, weekly curbside collection of recyclable materials (glass, newspaper, aluminum cans, plastic containers) but excluding such items as appliances, furniture. S 7.85 per month per unit 21 0 • 2. SPECIAL QUALIFIED SENIOR CITIZEN HARDSHIP RATE/ FOR RESIDENTIAL CURBSIDE SERVICE: Monthly cost per unit for regularly scheduled weekly curbside collection and disposal of residential /household waste, weekly curbside collection of recyclable materials (glass, newspaper, aluminum cans, plastic containers) but excluding such items as appliances, furniture. 5 5.21 per month per unit [subject to verification of eligibility] 3. SPECIAL QUALIFIED HANDICAPPED CITIZEN /BACKYARD COLLECTION RATES FOR SINGLE FAMILY RESIDENCES: Monthly cost per unit for regularly scheduled backyard collection and disposal of residential /household waste, weekly curbside collection of recyclable materials (glass, newspaper, aluminum cans, plastic containers) but excluding such items as appliances, furniture. • S 7.85 per month per unit 5 5.21 per month per unit if the handicapped individual also qualifies for the senior citizen hardship rate. [subject to verification of eligibility] 4. SPECIAL ONE -TINIE PICK -UP COST FOR PICK -UP AND DISPOSAL OF APPLIANCES, FURNITURE AND BULKY ITEMS Not to exceed rate for one -time special pick -up and disposal of appliances, furniture and other bulky items not eligible for regular collection. 510.00 per item. �. RESIDENTIAL - SPECIAL ONE -TIME DROP -OFF AND COLLECTION OF A 3 -CUBIC YARD BIN Rate for one -time drop -off and collection of a 3 -cubic yard bin at a residential address. • $50.95 per bin, provided bin includes one collection and delivery to the landfill and rental of bin for up to seven (7) days. Additional days and collections require additional fees. • 6. RESIDENTIAL - SPECIAL ONE -TIME DROP -OFF. AND COLLECTION OF A 10 TO 40 -CUBIC YARD "ROLL OFF" CONTAINER Rate for one -time drop -off and collection of a 10 to 40 -cubic yard bin at a residential address. S 143.59 per load (all sizes), plus tipping fees (at actual cost). Loads exceeding seven (7) tons net weight will be subject to a S25 /ton surcharge. 7. MULTIPLE - FAMILY DWELLINGS- DETACHED UNITS ON A SINGLE LOT Monthly cost per unit for regularly scheduled weekly curbside collection and disposal of residential /household waste, excluding such items as appliances, furniture. S 7.85 per month per first unit. • S 6.33 per month per each additional unit E 8. MULTIPLE FAMILY UNITS - ATTACHED UNITS (APARTMENTS AND CONDO.NIINIUMS) AND MOBILEHOME PARKS Monthly cost per unit for regularly scheduled weekly curbside collection and disposal of residential /household waste, excluding such items as appliances, furniture. S 7.85 per month per first unit. S 5.14 per month per each additional unit NOTE THAT CUSTOMERS IN 1\1ULTIPLE RESIDENTIAL CATEGORIES MAY ELECT TO UTILIZE COMMERCIAL SERVICES AND RATES III' LIEU OF RESIDENTIAL SERVICES AND RATES. 2 3 • • • 9. COMMERCIAL ESTABLISHMENTS - REGULAR REFUSE COLLECTION Rate per month for regularly scheduled pick -up and collection of refuse from business, commercial and industrial establishments. Days refer to the number of pick -ups and collections per week. 3 -CUBIC YARD BIN 1 DAY PICK -UP 2 DAYS PICK -UP 3 DAYS PICK -UP 4 DAYS PICK -UP 5 DAYS PICK -UP 6 DAYS PICK -UP WITHOUT FORKLIFT WITH F/L 556.44/mo. 585.66/mo. $116.27 /mo 5147.00/mo 5181.62/mo S208.05 /mo $62.09 /mo. $94.23/mo. S127.84/mo $161.71 /mo $199.78/mo $228.86/mo 1 1/2 -CUBIC YARD BIN MTHOUT FORKLIFT IN71TH F/L 1 DAY PICK -UP 537.98/rno. $41.78/mo. 10. COMMERCIAL - ONE -TIME DROP -OFF AND COLLECTION OF A 3 -CUBIC YARD BIN Rate for one -time drop -off and collection of a 3 -cubic yard bin at a commercial address. $68.71 per bin, provided bin includes one collection and delivery to the landfill and rental of bin for up to seven (7) days. Additional days and collections require additional fees. 24 0- 11. COMMERCIAL - SPECIAL ONE -TIME DROP -OFF AND • COLLECTION OF A 10 TO 40 -CUBIC YARD "ROLL OFF" CONTAINER 0 is Rate for one -time drop -off and collection of a 10 to 40 -cubic yard bin at a commercial address. $220.86 per load (all sizes) including tipping charges; 7 ton limit. Over 7 tons net per load, subject to $25.00 per ton surcharge. 12. COMMERCIAL - SPECIAL BARREL SERVICE FOR QUALIFIED COMMERCIAL, LIMITED USE CUSTOMERS Indicate rate for once a week pick -up and collection of a maximum of two not -to- exceed 35 gallon barrels. [Note: Only 48 commercial establishments entitled to this reduced - level servicel 538.43 per month. THESE RATES INCLUDE FOUR (4) CITY -NVIDE PICK -UP DAYS FOR LARGE BULKY ITEMS, SUCH AS APPLIANCES AND FURNITURE, WHICH SHALL BE PICKED -UP AND DISPOSED OF ON THE DESIGNATED DAYS, WITHOUT ADDITIONAL CHARGE TO THE CUSTOMER OR CITY. IN WITNESS WHEREOF, the City by order of its City Council and the Contractor by order of its Board of Directors, have caused this Agreement to be executed on the day and year first written above. CITY OF ROSEMEAD By: / Ja T. mperial, Mayor ' 75 • Attest: j City Clerk C1 • CONSOLIDATED DISPOSAL SERVICE, INC. a California corporation John A. Telesio, Prest ent /CEO 26 • FIRST AMENDMENT TO FRANCHISE AGREEMENT WITH CONSOLIDATED DISPOSAL SERVICE, INC. THIS FIRST AMENDMENT to AGREEMENT is made and entered into effective, the 11th day of January, 1994, by and between the CITY OF ROSEMEAD, a municipal corporation, hereinafter referred to as City, and CONSOLIDATED DISPOSAL SERVICE, Inc., hereinafter designated as Contractor. . The franchise agreement dated August 1, 1991 between the parties hereto is hereby amended as follows: 1. Section B Work to be Done, Paragraph 1, is hereby amended to read as follows: B. WORK TO BE nONR The work to be done under this Agreement shall include the furnishing of all labor, material, equipment and expenses necessary to perform the following minimum services: 1. Collection, hauling and disposal of refuse from the premises of any and all residents and businesses in the City, at the regularly scheduled intervals, and at the rates as provided herein. Said work shall include regularly scheduled pick -up • of refuse once a week from curb or alley. Contractor is the exclusive franchise provider and the only hauler authorized to provide regularly scheduled and one -time special container (bin or roll -off) service to any residence or business or construction site requesting such service, provided however that any contractor or other person may haul, in their own trucks, and properly dispose of any debris from a jobsite in the City. If contractor or other person utilizes a waste hauling service, he must utilize the services of the City's franchisee. 2. .Section L Performance Bond is hereby amended to read as iJliGivS: L. PERFORMANCE BOND 1. Upon being awarded approval for the collection, removal and disposal of refuse in the City, the Contractor shall file with the City Clerk and shall thereafter during the entire term of the Agreement maintain in full force and effect a corporate surety bond or other adequate surety agreement in a form satisfactory to the City Attorney in the amount of One Hundred Thousand Dollars ($100,000) for the Contractor's faithful performance of this agreement. • 2. Said bond shall be so conditioned that in the event that the Contractor shall fail to comply with any one or more of the provisions of the Agreement, then there shall he recoverable • jointly and severally from the Contractor and surety any damages or loss, or costs suffered or incurred by the City as a result thereof, including attorney's fees and costs of any action or proceeding, and the full amount of any compensation, indemnification, cost of removal or abandonment of any property or other cost which maybe in default, up to the full principal amount of such bond. 3. Said bond shall not be canceled, altered or allowed to lapse without at least thirty (30) days' prior written notice to the City Clerk by the surety. 4. Failure to file or maintain such a bond shall be deemed a breach of the Agreement, and shall be grounds to terminate the Agreement by the City Council. IN WITNESS WHEREOF, the City by order of its City Council and the Contractor by order of its Board of Directors, have caused this Agreement to be executed on the day and year first written above. • • Attest: City Clerk CIT M CONSOLIDATED DISPOSAL SERVICE, INC. a California Corporation B/� John A. Telesio, President /CEO • SECOND AMENDMENT TO EXCLUSIVE REFUSE COLLECTION AND RECYLCING FRANCHISE AGREEMENT This Agreement made and entered into this day of 1996 by and between the CITY OR ROSEMEAD, a municipal corporation, hereinafter referred to as "City" and CONSOLIDATED DISPOSAL SERVICE, INC. hereinafter referred to as "Contractor" hereby amends that certain agreement made and entered into effective August 1. 1991 and amended effective January 11, 1994 between the parties, hereinafter referred to as "Agreement" NOW THEREFORE, the City and the Contractor agree as follows: I . The second paragraph of the Agreement is hereby revised to read as follows: The City and Contractor agree each with the other that Contractor shall have sole right to collect, haul and dispose of all refuse and conduct a comprehensive recycling program in the City of Rosemead for a term • commencing August 1. 1996 and expiring July 31, 2001, provided however, that commencing August 1, 1997 and every year thereafter, automatic one year extensions shall be applied to said Agreement so that the term of this Agreement shall thereafter remain at a constant five years, subject to the rights of the parties to terniinate the Agreement set forth in paragraph P. 2. Paragraph F - Collection Rates and Billing is hereby revised to read as follows: F. COLLECTION R ATES AND BILLING I - The City and Contractor, as part of this Agreement, fix and determine uniform rates that shall be charged by the Contractor for the collection and removal of refuse. The rates thus fixed and determined shall remain in effect for the period prescribed or until changed pursuant to the provisions hereof. The Contractor shall not charge or collect any fees or rates other than the fees or rates thus fixed and determined. 2. The City Council shall, not more frequently than once per year, authorize a rate adjustment by application of the following formula and procedure to then current rates: • • 1 The total rate paid by customers is comprised of two components: A. Disposal Cost. The disposal cost component consists of tipping fees paid to and established by operators of landfills. The Contractor has no control over the, tipping rates established by the County Sanitation District or private landfill operators. B. Collection Cost. The collection cost component consists of the Contractor's costs for the collection and hauling of waste. Collection Cost rate freeze. Contractor agrees that there will be no increase in the collection cost component for residential customers effective prior to August 1, 1997. Except for the rate freeze on the collection cost component for residential customers, the following rate adjustment formula shall apply: Contractor shall be entitled to rate adjustments, effective on the anniversary date of the franchise (August 1) based upon the following formula: .70 x increase in Consumer Price Index, All items. 1982 -84 = 100 (Los Angeles- Anaheim- Riverside) from the base month • (commencing June. 1991) to the following year's comparison month (June, 1992, .Tune 1993, etc.) plus .30 x the percentage change in tipping fees to arrive at the percentage adjustment to be applied to all rates herein. authorized. Allowable adjustments, based upon tipping fees, shall be based upon the rates as established by the Los Angeles County Sanitation District. Example: FACTOR 0/GCIL4,NGE 0/-OVERALL COSTS TOTALS CPI 4.7% x.70 3?9 DISPOSAL 10.00% x,30 3.00 Adjustment percentage 6.29 City and Contractor agree that the disposal cost component has been increasing as a percentage of the overall costs of waste removal. If the Contractor's disposal costs continue to escalate as a portion of the overall cost, Contractor may apply to • the City Council to increase the percentage of rate adjustment, currently 30 %, assigned to disposal costs. Upon the commencement of commercial Material 2 • Recovery Facility operations, a separate formula shall be set forth which takes into account the disproportionate disposal costs associated with commercial Materials Recovery Facility serviced accounts. 3. The Contractor shall not make or grant any preference or advantage to any person, nor subject any person to prejudice or disadvantage with respect to rates, fees, charges, service, facilities, rules, regulations, or any other respect. Contractor is specifically authorized to charge a Senior Citizen Hardship rate and a Handicapped rate for those accounts who meet the following eligibility criteria: A. SENIOR CITIZEN HARDSHIP RATE - Those customers, aged 62 and over, who meet the following income limitations, shall be entitled to the Senior Citizen Hardship Rate as listed in this Agreement: Single Income not to exceed $1,098 per month Family (2 or more) Income not to exceed $2,198 per month Contractor is authorized to require proof of age and an affidavit • of eligibility, signed by the customer. The "not to exceed" income levels listed above shall be increased to reflect cost of living adjustments on August 1 each year of the franchise. B. HANDICAPPED RATE - Those customers, who meet the eligibility requirements of the Department of Motor Vehicles for issuance of a handicapped parking permit, shall be entitled to backyard service, at the regular residential rate. If the handicapped individual also qualifies for the Senior Citizen Hardship Rate, he or she shall be entitled to backyard service at the Senior Citizen Hardship Rate as listed in this Agreement. 4. Except as otherwise provided herein, Contractor will bill each customer directly for service and will collect from such customer for same. City shall not be responsible for collection or payment for such services. 5. Contractor may not suspend its collection and disposal services hereunder to a customer who has failed to pay a proper billing for services. Contractor shall make all reasonable efforts to diligently pursue and collect all fees and charges • due Contractor for rendering such services. In the event of a delinquency, the Contractor shall also notify the owner of the real property of the amount of the I • delinquency and the possibility, of property tax lien collection. Contractor shall provide to City, not more frequently than quarterly, individual letters, postage prepaid, which contain the names of the property owner and occupant (if different from the owner), the address of the owner as shown on the latest updated assessment roll, including the assessor's parcel number and whatever other information is required by the Los Angeles County Tax Collector. Said letters shall slate the amount of delinquency, penalties, late charge(s) and collection costs. City shall allow Contractor to use the update assessment roll records available at City Hall. City allows such use as an accommodation only and does not warrant the accuracy of such records. The only responsibility of the City pertaining to notice of and public hearing shall be as follows: The City Manager or his designee shall notify property owners by sending the letter designated in the paragraph next above. Such notice shall further declare that the City Council shall at a regular meeting, review and approve as an assessment against the property the amount delinquent and unpaid, the amount of the penalty and late charge(s), collection costs, including administrative costs incurred. If the total assessment determined and approved by the City Council is not paid within ten (10) days after such • determination, then and in that event, there shall be recorded in the Office of the County Recorder a statement of the total balance due together with the legal description of the property affected. From and after the date of such recordation, the balance'due shall be a special assessment against the real Property. The assessment shall be collected at the same time and in the same manner as are county property taxes and shall be subject to the same penalties. and to the same procedure and sale in cases of delinquency as provided for other taxes and assessments appearing on the county property tax bill. All laws applicable to the leery, collection and enforcement of county taxes shall be applicable to such special assessment. Contractor shall be paid the amount actually recovered by the City on an unpaid account less 10% (ten per cent). Said payment to Contractor shall be made within thirty (30) days of the City's receipt of funds. 6. The Contractor shall obtain the written approval of the City Manager as to the billing periods used. 7. Each bill shall contain the name, address, telephone number and office hours of the Contractor, the amount and period being billed, a statement that the Contractor will provide, upon request, a complete list of the rates for the • various types of services provided by the contractor, a statement indicating how to file a complaint and how complaints are resolved, as well as the possibilities rd • of recourse available to customers, the holiday schedule, and any other information necessary to assist residents as determined by the City Manager. At least 30 days prior to any rate change, the Contractor shall mail all customers notice of said rate change. 3. Paragraph I- Refuse Containers is hereby amended to read as follows: I. REFUSE CONTAINERS 1. Contractor shall implement an automated residential container program by December 1, 1996. 2. Each residence will be furnished, at no charge, one automated container with approximately 100 gallon capacity. Additional 100 gallon containers will be provided at a charge of $1.50 per month for those residents who require additional capacity. Smaller containers will be made available for customers with special circumstances justifying a smaller container. • 3. Contractor shall submit a detailed implementation plan of the automated collection program to the Cin, for advance approval. 4. Once the automated collection program is fully implemented, customers must place all refire in the automated container(s) provided. No trash bags, cardboard boxes, loose debris or waste placed in other non - automated containers will be collected with the exception of appropriately sorted and tagged green waste and disposal items on designated quarterly "bulky item" citywide collection days. 5. All refuse containers shall be replaced, upright, with the lids immediately beside the containers. Containers and lids shall not be placed or thrown on the streets, alleys, highways, or on adjoining property. 6. The Contractor, his agents and /or employees, shall not throw refuse containers from the truck to the pavement or park-way, shall not cause damage by striking them against the truck to dislodge contents, or in any other way break or damage or roughly J7. the same. claims for damage of containers, by reason of the misuse or rough handling of ntainers by the Contractor, shall be presented to the Contractor by the resident. ontractor shall make a decision concerning settlement within of such claims. 48 hours of receipt • 5 { %Tv) It J, }�'ab', o f �Gr (,t. { � lit. • 8. Any refuse container which will n long refuse without spilling, which leans or is not water tight shall be replaced y the person from whom refuse is collected, within ten (10) days after notice from the Contractor stating the condition of such container. Such notice shall be made by attaching a tag to such container and indicating thereon the defective condition thereof. 9. The Contractor shall provide large capacity containers (bins) for mechanical loading wherever customers so request their use, and the use thereof shall be in accordance with the rates established herein. Each container provided shall have the Contractor's name, or company name, placed and maintained on one or more locations on the outside in letters not less than three (3) inches in height. The Contractor shall regularly inspect all large capacity containers, repair or replace any damaged containers, and maintain an inventory need to meet the demand of customers. All such containers shall be maintained by Contractor so as not to leak. Upon customer request, containers shall feature tight - sealing lids (the Balanced Lid Systems (or equivalent) bins specified in Exhibit D to the Contractor's proposal) 10. Residents electing to use large capacity containers for mechanical loading shall use such containers exclusively and shall place such container for pickup where they are readily accessible to the Contractor's equipment. • 11. The Contractor shall provide sufficient workers and equipment so as to limit the time that the bins are placed in the public right -of -way to a maximum of three (3) hours. 4. Paragraph 0- Agreement Term and Renewal is hereby amended to read as follows: The Contractor shall have the exclusive right to collect, haul and dispose of all refuse within the City for a term commencing August I, 1996 and expiring July 31, 2001, provided however, that commencing August 1, 1997 and every year thereafter, automatic one year extensions shall be applied to said Agreement so that the term of this Agreement shall thereafter remain at a constant five years, subject to the rights of the parties to terminate the agreement set forth in paragraph P. of Agreement. Should either party desire that said automatic one -year renewal and extension term be terminated, such party may give the other written notice of such not later than May 1 of any ;year of the Agreement. Such notice u2ll terminate the automatic one -year renewal and extension provision, and the Agreement shall remain in effect for the balance of the term outstanding. 5. Paragraph T- Recycling is hereby amended by the addition of the following at the • conclusion thereof: 3 N • 5. Commercial recycling program. The Contractor shall undertake the program described in its Waste Services Franchise Renewal Proposal. Prior to the implementation of Phase E - Materials Recovery Facility, the Contractor and City shall negotiate a rate to be paid by commercial accounts that will reimburse the Contractor for the substantial additional disposal costs associated with Materials Recovery Facilities. An implementation plan and initial rate schedule for commercial accounts with Materials Recovery Facility service shall be subject to the City Council's review and approval. Upon adoption of the initial rate schedule, a separate rate adjustment formula shall be set forth which takes into account the disproportionate disposal costs associated with commercial Materials Recovery Facility serviced accounts. 6. A new paragraph "AA - AB 939 Indemnification" is hereby added to the Agreement as follows: AA. AB 939 Indemnification. Contractor agrees to protect, defend, indemnify and hold harmless the City against 90% (ninety percent) of all fines or penalties imposed by the California Integrated Waste Management Board or its successor due to the failure Of the City to divert from landfills at least 25% (twenty five percent) of the garbage and rubbish including recyclable materials attributable to City, or, commencing no earlier than January, 1, 2000, 50% (fifty per cent) of such garbage and rubbish • including recyclable materials thereafter, or such lesser percentage equal to the landfill diversion goals imposed on local governments by AB 939 as it may be amended from time to time provided that the City's failure to accomplish the landfill diversion goals shall not result from any negligent or willful act or omission of City. • 7. A new paragraph "BB - Hazardous Materials" is hereby added to the Agreement as follows: BB. Hazardous Materials. Contractor shall adopt and adhere to a training program that will assist their employees to identify and properly dispose of any hazardous materials that may come into their possession. Contractor shall reasonably assist City in dissemination of information regarding hazardous materials to local residents and businesses. 7 0 IN WITNESS WHEREOF, the City by order of its City Council and the Contractor by order of its Board of Directors, have caused this Second Amendment to Agreement to be executed on , 1996. ATTEST: City Clerk • • CITY OF ROSEMEAD Margaret Clark, Mayor CONSOLIDATED DISPOSAL SERVICE, INC. No 0 John A. Telesio, PIesident/CEO • f r \ 0.y%.. " c>.& Aar LOS ANGELES COUNTY SOLID WASTE RATES AND SERVICES SURVEY - 2007 HF &H CONSULTANTS, LLC September 24, 2007 This Solid Waste Survey is a copyrighted product of HF&H Consultants, LLC. All rights reserved. No part of this product may be copied, reproduced, replicated, disseminated or distributed in any form or by any means, electronic or mechanical, without the express written permission of HF &H Consultants, LLC. Copyright permission information: To obtain permission to copy, quote, reproduce, replicate, disseminate or distribute this survey, please prepare a brief letter outlining at minimum who you are and what your intended use of the data is, and fax that information to the attention of HF&H Consultants at (949) 251 -9741. Depending on the use described, there may be a royalty fee due to HF&H Consultants, LLC. 1 1 1 1 1 1 1 1 1 1 1 [1 1 I Mhh, 0 0 1 1 1 1 Advisory Services to Municipal Management 3990 Westerly Place, Suite 195 Newport Beach, California 92660 Telephone: 949 /251 -8628 Fax: 949/251 -9741 unow.hrh- consultants.com September 24, 2007 Mr. Andrew Lazzaretto City Manager City of Rosemead 8838 East Valley Boulevard Rosemead, CA 91770 Los Angeles County Solid Waste Services Survey Dear Mr. Lazzaretto: Robert D. Hilton, CMC John W. Farnkopf, PE Laith B. Ezzet, CMC Enclosed are the results from our survey of residential and commercial solid waste services in the cities within Los Angeles County. ' Interpreting Results ' In order to assist you in interpreting the results, we have identified certain special service features that affect the cost of service, such as the method and frequency of collection, and types of diversion programs. However, there are other operating characteristics that affect service ' costs that our survey does not address, such as route density, disposal volumes, revenue sharing arrangements for recyclable material sales, fees retained by the cities, responsibility for billing, pricing decisions regarding rate subsidies, and other factors. There may also be special ' services provided in some cities at no additional charge to the ratepayers such as bulky item pickup, household hazardous waste roundups, and citywide cleanup days. These characteristics have a significant impact on the cost of solid waste collection service, and may ' vary among cities. For this reason, if a city has a relatively low rate, it does not necessarily mean that the city is getting a 'better deal ". It may mean that certain operating characteristics unique to that community may enable the hauler to provide service at a lower cost, or that ' pricing decisions have kept particular rates low. Conversely, cities with higher rates may have certain attributes which cause the cost of solid waste collection to be relatively higher. ' Rates The rates are intended to reflect the cost of solid waste collection and disposal, curbside t recycling, processing, and yard waste collection. The rates should not include charges for non- solid waste services that may be included in monthly utility bills. 1 1 0 0 Advisory Services to Municipal Management Mr. Lazzaretto September 24, 2007 Page 2 of 2 Survey Process and Limitations The survey was performed as an independent research project by HF &H Consultants, LLC, ( "HF&H "). The survey information was provided by the cities during telephone interviews, and subsequently summarized and sent to each city for written confirmation. The preliminary draft survey results were distributed to the survey participants for final review and verification and we have made any revisions that were forwarded to us by September 10, 2007. The information contained in the enclosed exhibits are based on data reported by the participating cities for rates in effect as of January 2007, and some cities may have adjusted their rates since that time. We have not independently verified the submitted data, therefore, the information is shown as represented by the survey respondents. Firm Information HF&H consultants apply their solid waste program planning and funding, rate setting, procurement, negotiation, and financial management skills exclusively to public agencies. We have assisted over 250 California agencies to plan, implement, and evaluate their solid waste and recycling programs. Our team of consultants includes solid waste managers from major U.S. cities, as well as engineers, recycling experts, accountants, economists, and public education specialists with broad experience in the solid waste industry. As a result of engaging HF&H, our clients are confident that their solid waste services are planned, implemented and managed in an effective manner and at the lowest reasonable cost to their rate payers. If you have questions about the survey results or our firm, please call me at 949/251 -8902. Very truly yours, HF&H Consultants, LLC Laith B. Ezzet, CMC Senior Vice President 1 1 1 1 1 1 1 1 1 1 1 I 1 1 I 1 1 1 1 1 1 1 11 0 0 LOS ANGELES COUNTY Survey of Solid Waste Rates & Services TABLE OF CONTENTS SECTION 1: SURVEY RESULTS Overview of Service Arrangements Residential Program and Rate Information (Sorted by Total Monthly Rate Lowest to Highest) Commercial Rates (Sorted from Lowest to Highest) Residential Collection Service Providers Commercial Service Arrangements Gross Receipts Fee in Cities with Non - Exclusive Commercial Service Arrangements Residential Collection Method Automated Refuse Container Size Automated Recycling Container Size Automated Yardwaste Container Size Residential Rate Structure Does Contract Contain an "Evergreen' Automatic Renewal Clause? SECTION 2: HF &H CONSULTANTS, LLC —FIRM INFORMATION Overview of Firm Solid Waste & Water /Wastewater Clients Brochures: Contract Management Services Management & Operations Reviews Program Implementation, Diversion, & Sustainability Services Recycling & Solid Waste Audit Services Recycling & Solid Waste Contract Services Recycling & Solid Waste Rate Services Vehicle Impact Studies 1 5 9 13 14 IR 16 17 18 19 20 21 1 3 0 0 ' 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 SECTION 1 SURVEY RESULTS TABLE OF CONTENTS Overview of Service Arrangements Residential Program and Rate Information (Sorted by Total Monthly Rate Lowest to Highest) Commercial Rates (Sorted from Lowest to Highest) Residential Collection Service Providers Commercial Service Arrangements Gross Receipts Fee in Cities with Non- Exclusive Commercial Service Arrangements Residential Collection Method Automated Refuse Container Size Automated Recycling Container Size Automated Yardwaste Container Size Residential Rate Structure Does Contract Contain an "Evergreen" Automatic Renewal Clause? 1 5 9 13 14 15 16 17 18 19 20 21 I 1 1 1 1 1 1 z W fW zV ° o� U � w wb a zo w w 00 O O 0 0 0 U X aY C� "s e; ui a k f fn O F A as ,Q O q v � r e� v y c W¢ o :J p U E " v� 0' ,p � z z�� z z�rzzzrzrzz CG �� u w d c O d q ° �E' Z a v ry a °• ry 'JP' u Q3uo z° m 3 3 c��c�3uu 3�m .q �W a o . on U U ao m m O tti m m U u u u U U U O G 0 U X aY C� "s e; ui a k f fn w ci A QQN OM U ;; Q M m w M w '° > r-j Q w w O 09 O 0 0 p C A z ° Zo ,rc uw, s N a .9 x 75 0 v 3 3 H a i 4 o g 3 8 d >> 3 8 3 m 3 3 a u p d r tea, 5 U o o o o 0 0 0 m o 0 0 0 0 0 0 0 o o p Z Z ❑ Z} Z Z Z Z o Z Z Z Z Z Z } Z Z Z Z a U A a 5m �j ^ i3s rj G � V IU Q (!] Q 79 3i � y0 ,gyd� pgyyy ^� C� tOCdQ�O edpp x X �3xmu3 � u a �¢uxuti�3 >3 ¢ >3ut�� T (V N � A N p w a 0 ^ d r b FF O �q A x p N b ��p ;vg;�qq � a A yy 2�2 .24 -1 N N u° x g N W qO L 6 N N� & H z w w C7 z Q a o� uy V) b w W3 > d O w 00 0 a N w O 0 9 O . b - i4 p C G }} r} 'O 2 GG u � y � tii' �i '2 � - ❑ fi Ji .5 �' m N U 0 O b 9 C. 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O b OD O n O O F O 96 O eM O O M v a `d 3 N C V F v N O r C � OM1 O A P] a N d E m w d m W v eL `+ J "*Awl tt VIA x o� 'N V Nook 0 N LN 0 tai d� M U cu W 0 N �i eu v a 00 w vo O v a 00 E 0 0 o. 0 u c A c 0 U O If a v b fi b 4 b h 0 }!L l� W� V O� V v v � Ala O � V � a� 0 Q 0 a4 N ■ 0 0 .rr .:w V 1�1 N d F V n y� N N L 0 0 0 a g N b ,O fi d a d m 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 E SECTION 2 0 HF &H CONSULTANTS, LLC FIRM INFORMATION TABLE OF CONTENTS Overview of Firm Solid Waste & Water /Wastewater Clients Brochures: Contract Management Services Management & Operations Reviews Program Implementation, Diversion, & Sustainability Services Recycling & Solid Waste Audit Services Recycling & Solid Waste Contract Services Recycling & Solid Waste Rate Services Vehicle Impact Studies 1 3 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 I 1 1 1 1 1 1 1 1 1 0 0 OVERVIEW OF FIRM Mission: HF &H's mission is to provide services of high value and quality, to Improve public improve public services and the use of environmental resources, and to services serve our clients with integrity. We believe our mission distinguishes us from our competitors. It has resulted in our high degree of client satisfaction and our reputation as one of the top solid waste management consulting firms in the western United States. HF &H is a Limited Liability Company and in March, 2007 we became a certified small business with the state of California. Hilton Famkopf & Hobson, LLC began performing consulting services in 1989. The firm was founded by Robert Hilton, John Famkopf, and Scott Hobson. On August 2, 2006, we legally changed our name to HF&H Consultants, LLC. We highly value the contributions of our founders; however, we realize that the name HF &H Consultants better reflects our status, long -term vision, and capabilities. Over the past 18 years, we have recruited and developed the best group of consultants in the industry—a complete team of experienced, nationally- certified professionals across multiple disciplines. Our team works hard to help you significantly reduce costs by applying proven management tools and creative solutions to your challenges and program goals. Professional HF&H's three founding partners, Robert Hilton, John Famkopf, and Scott approach Hobson worked together for several years for a "Big Six" accounting firm. focusing on At this "Big Six" firm, they developed their professional approach to clients objectives management consulting that includes: • Focusing on client objectives and goals. • Agreeing with the clients on the work to be performed, the time, and the budget. • Staffing projects with a team of qualified consultants. • Documenting and performing effective quality control review of the work performed. • Communicating frequently with the client. The synergy of HF&H provides clients with both the breadth of experience of a national certified firm and the responsiveness, accountability, and personal commitment of accountants, a local firm. HF &H staff includes accountants, economists, engineers, engineers and and management consultants with both public sector and industry management experience. The synergy resulting from the varied backgrounds of our consultants consultants provides substantial added value to our clients. This value 1 0 0 can rarely be achieved by individual engineering, accounting, or management consulting firms. Our regional location and focus ensures that we are intimately familiar with legal, regulatory, and industry developments. Because our consultants are seldom far away, our clients always receive a timely, personal response to their needs. In HF&H's most recent client satisfaction survey (2006), 100% of the respondents said, "HF &H staff were responsive to my needs and inquiries." ratio HF&H has a low staff -to- executive ratio in order to allow our most Low stiff experienced consultants to actively participate in client projects, rather executive ratio than only in practice development and project administration. Unlike firms that delegate critical tasks to junior employees, our senior advisors are involved throughout our clients' projects. Our staff works as a team to provide a group with diverse experience and expertise and to allow for service to be delivered cost - effectively. Furthermore, the close working relationship between management and staff ensures effective supervision and quality control. The executives' national certifications assure our clients of compliance with the highest professional standards. FIRM STABILITY AND STRENGTH The firm has 20 employees, including its 3 owners. During the past five years, HF &H has employed as few as 13 employees and as many as 21 employees. HF&H's consulting staff is comprised of 17 professionals with extensive qualifications and project experience. In addition to our 20 employees, we have an on -going relationship with Scott Hobson, a founding partner who left the firm to join the Accounting Department at Brigham Young University. Mr. Hobson continues to work with us to serve our clients on a consulting basis. Our reputation for excellent client service is well established, having performed more than 800 solid waste engagements over the past 18 years. We have developed long -term relationships with our clients. In fact, approximately 70% of our work is performed for continuing clients, some of whom the members of HF&H have worked with for more than 20 years. Our track record, measured in terms of the number and type of engagements and the number of repeat clients, demonstrates our ability to consistently deliver a high level of client satisfaction and our financial strength as a consulting firm. A recent client survey found 100% percent of the respondents agreeing, "HF &H staff were professional, experienced and well qualified." With our wide - ranging educational and professional backgrounds, we can apply a diversity of perspectives and expertise. appropriate to your project. z 1 1 1 1 1 1 1 1 1 I 1 ' County of Los Angeles • List of Solid te and Water/Wasteenater Clients 1 ' LIST OF SOLID WASTE AND WATER/WASTEWATER CLIENTS Aerojet General Corporation City of Chandler ' Alameda County Clean Water Program City of Chula Vista Alameda County Waste Management Authority City of Clovis Alameda County Water District City of Compton ' Alameda joint Refuse Rate Review Committee City of Corte Madera Alameda Solid Waste Advisory Committee City of Cotati Amador Water Agency City of Covina ' Bay Area Water Supply & Conservation Agency City of Cudahy Bear Creek Valley Sanitary City of Cupertino Bold, Polisner, Maddow City of Daly City ' Brown, Vence & Associates, Inc. City of Dana Point Bryan A. Stirrat & Associates City of Davis California Water Service Company City of Del Mar ' Carmichael Water District City of Diamond Bar Castro Valley Sanitary District City of Downey Central Contra Costa Sanitary District City of Dublin ' Central Contra Costa Solid Waste Authority City of East Palo Alto City of Adelanto City of El Centro City of Alameda City of El Cerrito City of Albany City of El Monte City of Anaheim City of Elk Grove City of Arcadia City of Emeryville ' City of Ashland City of Encinitas City of Atherton City of Eugene City of Atwater City of Fair Oaks ' City of Azusa City of Fairfield City of Barstow City of Fairfield City of Bellflower City of Fillmore ' City of Belmont City of Florence City of Belvedere City of Folsom City of Benicia City of Fort Bragg ' City of Beverly Hills City of Fort Collins, CO City of Brentwood City of Fortuna City of Burbank City of Foster City City of Burlingame City of Fremont City of Calabasus City of Fresno City of Camarillo City of Fullerton City of Campbell City of Garden Grove City of Canyon Lake City of Gilroy City of Carlsbad City of Glendale, Arizona ' City of Carpinteria City of Glendale, California City of Carson City of Glendora City of Carson City, Nevada City of Goodyear ' City of Cerritos City of Gridley ' HF &H Consultants, LLC County of Los Angeles List of Solid Wastd Water/Wastezoater Clients ' City of Guadalupe City of Monrovia City of Hawthorne City of Montclair City of Hayward City of Monte Sereno City of Healdsburg City of Monterey Park City of Hercules City of Morgan Hill City of Hesperia City of Mountain View Town of Hillsborough City of Murietta City of Hollywood City of Napa City of Imperial Beach City of Newark City of Indian Wells City of Newport Beach City of Indio City of Newport, OR City of Inglewood City of Northridge City of Irvine City of Oakland Public Works Agency City of Kensington City of Ogden, UT City of La Canada- Flintridge Town of Old Sacramento City of La Habra City of Ojai City of La Palma City of Orange City of La Puente City of Oxnard City of La Quints City of Pacifica City of La Verne City of Palm Desert City of Laguna Beach City of Palm Springs City of Laguna Niguel City of Palmdale City of Lake Forest City of Palo Alto City of Lancaster Town of Paradise City of Lathrop City of Pasadena City of Lawndale City of Paso Robles City of Lincoln City of Peoria, AZ City of Litchfield Park, Arizona City of Petaluma City of Livermore City of Piedmont City of Lodi City of Pinole City of Long Beach City of Pleasanton City of Los Altos City of Pomona Town of Los Altos Hills City of Port Hueneme City of Los Angeles City of Portland City of Los Banos City of Portola Valley Town of Los Gatos City of Poway City of Lynwood City of Rancho Palos Verdes City of Manhattan Beach City of Rancho Santa Margarita City of Manteca City of Redondo Beach City of Martinez City of Redwood City City of Menlo Park City of Rio Vista City of Mesa Consolidated City of Riverside City of Mill Valley City of Rohnert Park City of Millbrae City of Roseville City of Milpitas City of Sacramento City of Mission Viejo City of Saginaw City of Modesto Town of San Anselmo HF &H Consultants, LLC 1 1 E 1 1 1 1 1 1 1 1 1 1 I 1 1 1 I 1 I 1 County of Los Angeles • List of Solid Waste and Water/Wastezuater Clients City of San Bernardino Town of Windsor City of San Bruno City of Winters City of San Buenaventura City of Woodland City of San Carlos City of Yountville City of San Clemente Citygate Associates City of San Diego Clackamas County City & County of San Francisco Coachella Valley Association of City of San Jose Governments City of San Juan Capistrano Contra Costa Water District City of San Leandro County of El Dorado City of San Luis Obispo County of Humboldt City of San Mateo County of Kern City of San Rafael County of Los Angeles City of San Ramon County of Marin City of Sandy County of Mariposa City of Sanger County of Mendocino City of Santa Ana County of Merced City of Santa Barbara County of Mono City of Santa Clarita County of North San Diego City of Santa Cruz County of Riverside City of Santa Monica County of Sacramento City of Santa Paula County of San Bernardino City of Santa Rosa County of San Luis Obispo City of Santee County of San Mateo City of Seattle County of Santa Barbara City of Sebastopol County of Sutter City of Sedona, AZ County of Tulare City of Selma County of Ventura City of South Gate County of Yolo City of South San Francisco David M. Griffith & Associates City of Sunnyvale Delta Diablo Sanitation District City of Temecula East Bay Municipal Utilities District City of Thousand Oaks East Palo Alto Sanitation District Town of Tiburon Fairfield- Suisun Sewer District City of Torrance Fred Hutchinson Cancer Research Center City of Tustin Fremont Unified School District City of Union City Glenn County Public Works City of Upland Greater Vancouver Water District City of Vallejo Groveland Community Services District City of Vancouver, WA Hanson, Bridgett, Marcus, Vlahos & Rudy City of Vernon Humboldt Waste Management Authority City of Visalia Integrated Waste Management & City of Walnut Creek Recycling City of Watsonville Josephine County/Grants Pass SWA City of West Hollywood Kensington Police Protection City of West Linn, OR Lake County / City Area Planning City of Whittier Council HF &H Consultants, LLC County of Los Angeles • List of Solid Wastet Water/Wastemater Clients Lane County Waste Management Las Gallinas Valley Sanitary District Los Angeles County Sanitation District Los Trancos County Water District Lukin, Brothers Water Company Malaga County Water District Marin County Community Development Agency McCutchen Doyle Brown & Emersen, LLP Metropolitan Water District Morrison & Foerster Mountain View Sanitary District North American Development Bank North Coast County Water District Novato Sanitary District Olivenhain Municipal Water District Orange County Orange County/City Mans SW Working Group Oro Loma Sanitary District Placer County Water Agency Riverside County Waste Resources Management District Ross Valley Sanitary District RTI International San Francisquito Creek JPA San Gabriel Valley Council of Governments San Juan Water District Sanitary District No. 5 of Marin County Santa Clara Valley Water District Santa Margarita Water District Sausalito-Marin City Sanitary District Scotts Valley Water District SCS Engineers Sharon Heights Golf & Country Club Silicon Valley Animal Control Authority Somach, Simmons and Dunn South Bayside Waste Management Authority South County Fire South El Monte Joint Defense Group Southeast Water Coalition JPA Stanislaus County SWANA Tamalpais Community Services District The State Bar of California Tri-City Waste Management Union Sanitary District Veterans Home Administration Waste Management of Los Angeles HF &H Consultants, LLC West Bay Sanitary District West Contra Costa Integrated Waste Management West Valley Cities SWPM West Valley Sanitary Waste Management West Valley Solid Waste Management Authority Western Municipal Water District Western Riverside Council of Government 1 1 1 1 1 1 1 1 1 CMW.rd SOLUTIONS Contract Management Solutions Do you have limited staff resources to manage and monitor your recycling and solid waste contracts or per- mits? Do you need to supplement in -house resources with recycling and solid waste contracting specialists or solicit a different perspective? If so, HF &H can provide staff resources and expertise to manage contracts strategically for improved service and to monitor con- tractor performance on an ongoing basis. Flexibility and Expertise HF &H is ready to put an entire team of highly experi- enced experts to work for you. We have specialized skills across a wide range of disciplines: contract com- pliance, contract negotiations, diversion program plan- ning and implementation, auditing and accounting, legal review, public policy, and public outreach. Our most experienced consultants will actively contribute their expertise to serving your needs. Measurable Results Our services have helped more than 200 municipalities significantly reduce costs and achieve or exceed pro- gram goals. We have helped to establish and monitor sound contracts, and effectively deliver collection serv- ices to residents and businesses. For example, the City of Lawndale's residential diversion rate increased 30 percentage points in three years with HF &H's assistance. HF H VALUE Our contract management services can address all facets of your contracts, permits, and program needs and desired goals. We can: • Maximize your ability to meet and exceed program and diversion goals • Take a proactive approach to minimize compliance issues with your contractors, permittees, and /or regu- lators • Improve collection services and program performance by working with contractors and /or permittees to ensure that: - Performance standards are enforced - Contract requirements are being met - Contractor payments are timely and accurate - Customer rates are competitive and accurate - Customer requests and complaints are responded to in a timely manner • Monitor programs to identify potential problems and plan for future changes "The reason we hire HF &H time and again is the personal service. They are extremely responsive to our needs. I would recommend HF &H to any jurisdiction faced with challenging solid waste issues." Tami Piscotty, Assistant to the City Manager, City of La Palma SERVICES Contract Compliance • Monitoring compliance with contract requirements • Tracking and analysis of program data • Audits of contractor's records • Verification of requested rate adjustments • Assessment of diversion and outreach programs Contract Coordination and Oversight • Facilitation of regular meetings with contractor • Development and implementation of performance improvement plans • Review and approval of public education materials • Response to customer complaints Periodic Contract Management Assistance • Negotiation of contract ammendments • Preparation of contract management tools • Development of data tracking and analysis process • Survey of customers to assess quality of service and future needs "In my 25+ years of municipal adminis- tration, I have retained and managed the services of over 15 different consulting firms. 1 can truly say that HF &H is probably the finest firm in terms of personnel, flexibility, expertise and effectiveness that I have ever worked with." Antonio E. Acosta, Deputy City Manager/ Leisure Services Director, City of Union City Northern California Southern California 2175 N. California Boulevard, #990 3990 Westerly Place, #195 Walnut Creek, CA 94596 Newport Beach, CA 92660 925 - 977 -6950 949 - 251 -8628 ADVANTAGES YOU CAN TRUST Client Satisfaction Our clients have unanimously reported 100% satisfac- tion with our results, hire us again and again, and rec- ommend our services to other jurisdictions with similar needs.' Incomparable Support HF &H delivers outstanding support every step of the way. We build long -term relationships and deliver long- term value. Substantial Results We address your particular challenges and maximize your solid waste, recycling and diversion results. We've saved our clients millions of dollars collectively through expert monitoring of contractor compliance. One - Source Solutions As a team with extensive public sector and private hauler experience, we offer comprehensive solutions to your diversion compliance and contract performance issues. Get to know us and discover why we're the right choice for your public agency's contract management needs. 'Results of 2006 HF &H Client Satisfaction Survey conducted by Johnston, Gremaux & Rossi, LLP, Certified Public Accountants. Bob Hilton Laith Ezzet rhilton @hfh - consultants.com lezzet @hfh - consultants.com John Farnkopf jarnkopf @hfh- consultants.com www.hfh- consultants.com • Contract Management Services • Recycling & Solid Waste Contract Services • Recycling & Solid Waste Audit Services • Vehicle Impact Studies • Management & Operations Reviews • Program Implementation, Diversion & Sustainability Services • Recycling & Solid Waste Rate Services • Funding Storm Water & Street Programs *Service brochures are available upon request SOLUTIONS Safeguarding Your Future As cities grow and develop, needs change. As a result of this municipal flux, jurisdictions must modify recy- cling and solid waste programs, services and goals in order to operate efficiently —but where do they begin? Without objective evaluations of their management decisions, financial position, and operational activities, many end up with more questions than answers. HF &H has the experience, knowledge and insight to help. Premium Performance HF &H is committed to optimizing the efficiency of your recycling and solid waste programs and services. Our reviews ensure these operations are cost effective, achieve waste reduction goals, and meet long -term community needs by: • Conducting management studies that accurately assess your management's key assumptions. We make certain new or modified planning strategies and objectives are appropriate, financially 'sound, and viable. • Providing operation evaluations that accurately deter- mine the effectiveness, efficiency and safety of serv- ices provided by your operator. We identify causes of performance shortfalls; offer proven recommenda- tions to reduce costs and improve productivity and services; and assist with monitoring program results. Gratifying Results We focus on your unique goals and objectives. Our innovative approach to municipal and franchised opera- tional reviews identifies and substantiates opportunities to enhance your recycling and solid waste operations. As a result of recent HF &H management and opera- tions reviews, our clients have reported improvements such as a 10% decrease in routes, approximately $100,000 in reduced annual costs, and 10% increases in waste diversion. Our deep understanding of the recy- cling and solid waste industry allows our team of quali- fied experts to: • Plan and implement effective diversion programs and collection systems. • Evaluate operational effectiveness and develop rec- ommendations for improvement. • Provide dependable industry benchmarks for cost and service comparisons. • Offer independent, objective appraisal of operational and financial performance. "Your in -depth analysis of productivity associated with vehicles, equipment and testing asset purchases has saved ratepayers approximately $125,000 over the last three years." Mark Bowers Solid Waste Program Manager City of Sunnyvale UNSURPASSED SERVICES HF &H offers a comprehensive collection of services designed to enhance the performance and effective- ness of recycling and solid waste programs and servic- es. We provide optimal solutions for each public agency we assist. Cost of Service and Operation Review: We use proven industry standards to objectively evaluate the relationship between your cost of services and opera- tional productivity to ensure your goals are met or exceeded. Facility and Program Design Review: We assess existing facility and program designs to improve the bottom -line results of your operations. Management Studies: We analyze your key assump- tions and develop strategic long -term plans to assure your jurisdiction meets projected operational, program, and capacity demands. Organizational Studies: We assess existing staffing and organizational structure to verify proper assign- ment of responsibility. Strategic Planning Review: We establish program goals and systems and provide recommendations of operational and programmatic improvements to ensure long -term needs and goals are met. Northern California Southern California 2175 N. California Boulevard, #990 3990 Westerly Place, #195 Walnut Creek, CA 94596 Newport Beach, CA 92660 925- 977 -6950 949 - 251 -8628 ADVANTAGES YOU CAN TRUST Client Satisfaction Our clients have unanimously reported 100% satisfac- tion with our results, hire us again and again, and rec- ommend our services to other jurisdictions with similar needs.* Incomparable Support HF &H delivers outstanding support every step of the way. We build long -term relationships and deliver long- term value for every client. Substantial Results We address your particular challenges and maximize your solid waste, recycling and diversion results. We've saved our clients millions of dollars collectively through expert monitoring of contractor compliance. One - Source Solutions As a team with extensive public sector and private hauler experience, we collaborate and offer compre- hensive solutions to your diversion compliance and contract performance issues. Get to know us and discover why we're the right choice for your management and operations services. 'Results of 2006 HF &H Client Satisfaction Survey conducted by Johnston, Gremaux & Rossi, LLP. Certified Public Accountants. Bob Hilton Laith Ezzet rhilton @hfh- consultants.com lezzet @hfh - consultants.com John Farnkopf jarnkopf @hfh - consultants.com www.hfh- consultants.com • Contract Management Services • Recycling & Solid Waste Contract Services • Recycling & Solid Waste Audit Services • Vehicle Impact Studies • Management & Operations Reviews • Program Implementation, Diversion & Sustainability Services • Recycling & Solid Waste Rate Services • Funding Storm Water & Street Programs *Service brochures are available upon request SOLUTIONS Optimizing Your Options Compelling analysis. Decisive actions. Follow through. The breakthrough tactics needed to achieve AB 939 mandates can overwhelm jurisdictions strapped for time and specialized in -house talent. Fortunately, HF &H has the time, talent, and track record to provide power- ful options and solutions for all your diversion goals. Expert Guidance HF &H clients benefit from our deep knowledge of the recycling and solid waste industry and our understand- ing of long -term community needs. We help you increase diversion volumes and achieve solid -waste reduction compliance by: • Developing, implementing, and monitoring cus- tomized programs and services to meet or exceed your objectives; including hard -to -reach sectors such as multi - family, commercial, and C &D generators. • Managing franchise agreements to facilitate optimal recycling and solid waste operations and ensure con- tractor compliance. • Tracking new and pending legislation to ensure that our clients are prepared to comply with new regula- tions. • Increasing used oil, used oil filter, and bottle and can recycling volumes through grant administration and program development. Desirable Results Our integrated approach to diversion program imple- mentation has achieved diversion goals for hundreds of California municipalities. Client success stories illus- trate the tremendous value of our diversion services: • Since contracting with HF &H, Lawndale implemented over a dozen new programs, increased City fees by over $350,000 per year, and improved contractor reporting and diversion compliance; all resulting in a 30 percentage point increase in residential diversion rates in three years. • HF &H documented over 31,000 tons of misreported waste by over 60 unlicensed haulers in La Puente resulting in a 79 percentage point increase in the City's diversion rate. • Alternative Employment Adjustment Factor Certification in the cities of La Quinta, San Juan Capistrano, San Clemente and Dana Point increased diversion rates by 8 to 12 percentage points. • Tonnage modification reporting for Union City resulted in increased diverstion rates ranging from 14 to 28 percentage points. "HF &H has provided critical advice, sup- port, and program oversight through their AB 939 compliance services which has allowed our City to meet the State's diversion goal." Marlene Miyoshi Director of Public Works City of Lawndale DYNAMIC DIVERSION AND SERVICES HF &H offers a broad range of fully integrated services, which we tailor for every city and public agency we serve. We provide the expert guidance necessary to achieve or surpass diversion mandates and goals. AB 939 Implementation Services: We use our in- depth industry knowledge to develop, evaluate, imple- ment, and monitor progressive recycling and solid waste diversion programs to meet or exceed mandated and community - defined diversion goals. We formulate public education outreach and media relations curricu- lums; provide legislative and regulatory updates; and, review and redraft disposal reconciliation reports and audits. Sustainability Services: We determine "sustainability indicators" to alert our clients of recycling and solid waste program problems. We attend community meet- ings to select sustainability indicators and use commu- nity -based social marketing techniques to improve established sustainability indicators in program plan- ning efforts. Annual Report Services: We monitor and complete necessary documents, including: CIWMB Annual Reports; Disposal Modification and Alternative Adjustment Method forms; SB 1066 Time Extension Applications; Creation of a New Base Year; and Sewage Sludge Diversion Credit Applications. Northern California Southern California 2175 N. California Boulevard, #990 3990 Westerly Place, #195 Walnut Creek, CA 94596 Newport Beach, CA 92660 925- 977 -6950 949 - 251 -8628 ADVANTAGES YOU CAN TRUST Client Satisfaction Our clients have unanimously reported 100% satisfac- tion with our results, hire us again and again, and rec- ommend our services to other jurisdictions with similar needs.' Incomparable Support HF &H delivers outstanding support every step of the way. We build long -term relationships and deliver long- term value for every client. Substantial Results We address your particular challenges and maximize your solid waste, recycling and diversion results. We've saved our clients millions of dollars, collectively, through expert monitoring of contractor compliance. One - Source Solutions As a team with extensive public sector and private hauler experience, we collaborate and offer compre- hensive solutions to your diversion compliance and contract performance issues. Get to know us and discover why we're the right choice for your program implementation, diversion, and sus - tainability services. 'Results of 2006 HF &H Client Satisfaction Survey conducted by Johnston, Gremaux & Rossi, LLP, Certified Public Accountants. Bob Hilton Laith Ezzet rhilton @hfh- consultants.com lezzet @hfh- consultants.com John Farnkopf jarnkopf@hfh-consultants.com www.hfh- consultants.com • Contract Management Services • Recycling & Solid Waste Contract Services • Recycling & Solid Waste Audit Services Vehicle Impact Studies Management & Operations Reviews Program Implementation, Diversion & Sustainability Services Recycling & Solid Waste Rate Services Funding Storm Water & Street Programs *Service brochures are available upon request I SOLUTIONS Protecting Your Interests Penalties. Lost business. Litigation. Recordkeeping has become a high- stakes endeavor. At HF &H, our global approach to recycling and solid waste audits prevents problems and protects your jurisdiction by ensuring accuracy, integrity and excellence at every turn. Audits You Can Trust Reliable information makes all the difference. That's why HF &H has developed a suite of recycling and solid waste audit services you can trust. Our experts provide in -depth reviews to determine the accuracy of all your hauler fee payments, reported tonnage, billing, and rate adjustment requests. Dedicated to Details HF &H clients gain peace of mind from our in -depth solid waste audits by: • Verifying that residential and business bills reflect approved rates and accurate service levels. • Ensuring all franchise, AB 939 or other fees remitted are accurate. • Confirming that haulers have complied with recycling and solid waste service contracts; made reasonable, appropriate rate requests & adjustments; and accu- rately reported collected tonnage. RELIABLE RESULTS Cities and counties throughout the Western United States have come to rely on HF &H's unparalleled understanding of the recycling and solid waste industry. Our expert audit staff has reviewed the financial and operating records of approximately 100 hauling compa- nies on behalf of our clients. As a result, individual clients have recovered in excess of one million dollars in fees due from haulers. Conscientious audits, insightful recommendations and meticulous examinations have allowed our clients to: • Collect additional franchise, AB 939 and other fees. • Determine the accuracy of hauler fee payments, billings, services and reported tonnage. • Establish reasonable and appropriate rate strategies. • Improve diversion rates by confirming the accuracy of reported tonnage. • Validate the accuracy and fairness of hauler rate adjustment requests. Clients turn to HF &H when they require • Developing and evaluating viable costs for recycling thorough audits, sound financial and solid waste services. reporting and expert advice. Our clients unanimously report 100% satisfaction TOP -TIER AUDIT SERVICES HF &H provides recycling and solid waste audit services tailored to the demands of public agencies. Billing and Service Audits: We audit residential and commercial customer bills to ensure they reflect approved hauler rates and match the level of services provided, including the collection frequency and the size and number of containers serviced. Contract Compliance Audits: We evaluate hauler per- formance records to ensure they provide services to meet your recycling and solid waste service contracts. If hauler performance does not comply, HF &H offers proven solutions. Hauler Fee Payment Audits: We determine the accu- racy of AB 939 fees and other solid waste disposal fees based on assessment and hauler information records. Rate and Cost of Service Studies: We review the cost of providing recycling and solid waste services in order to develop suitable rates or rate - adjustment strategies to meet financial goals. Reviews of Rate Adjustment Requests: We verify that hauler rate adjustment requests are sensible and correctly calculated. Tonnage Audits: We analyze hauler reports and sup- porting records to verify the amount of tonnage collect- ed and establish correct diversion rates. ADVANTAGES YOU CAN TRUST Client Satisfaction Our clients have unanimously reported 100% satisfac- tion with our results, hire us again and again, and rec- ommend our services to other jurisdictions with similar needs.' Incomparable Support HF &H delivers outstanding support every step of the way. We build long -term relationships and deliver long- term value for every client. Substantial Results We apply our expertise to address your particular chal- lenges and maximize your recycling, solid waste, and diversion results. We've saved our clients millions of dollars collectively through expert monitoring of con- tractor compliance. One- Source Solutions As a team with extensive public sector and private hauler experience, we collaborate and offer compre- hensive solutions to your diversion compliance and contract performance issues. Get to know us and discover why we're the right choice for your auditing services. 'Results of 2006 HF &H Client Satisfaction Survey conducted by Johnston, Gremaux & Rossi, LLP, Certified Public Accountants. Northern California Southern California • Contract Management Services ■ 2175 N. California Boulevard, #990 3990 Westerly Place, #195 • Recycling & Solid Waste Contract Services Walnut Creek, CA 94596 Newport Beach, CA 92660 • Recycling & Solid Waste Audit Services ' 925- 977 -6950 949- 251 -8628 • vehicle Impact Studies • Management & Operations Reviews Bob Hilton Laith Ezzet • Program Implementation, Diversion & Sustainability Services rhilton @hfh - consultants.com lezzet @hfh - consultants.com • Recycling & Solid Waste Rate Services , John Farnkopf • Funding Storm Water & Street Programs jfarnkopf @hfh- consultants.com www.hfh- consultants.com 'Service brochures are available upon request . SOLUTIONS Rewarding Contract Solutions Having trouble developing contract terms? Your contractor won't sign on the dotted line? Although the recycling and solid waste contracting process may initially seem straightforward, jurisdictions often discover they need experts to help them navigate the rugged terrain. At HF &H, our expertise ensures your contract issues and contractor selection projects receive focused attention and yield rewarding results. Your Needs. Our Priorities. Comprehensive contracts set the stage for future suc- cess. That's why HF &H makes certain your agreements will satisfy your unique long -term needs. Our experi- enced staff of experts can resolve your contract chal- lenges by: • Offering intelligent strategies for developing new agreements and enhancing existing agreements. • Managing competitive contractor selection processes that generate numerous proposers and yield reasonable costs. • Providing objective, trustworthy contract recommen- dations to avoid unnecessary deliberation over the negotiating table or at City Council meetings. Maximized Results Our progressive contracting approach maximizes effectiveness and minimizes inefficiency. HF &H has assisted approximately 100 California communities in achieving their recycling and solid waste contract objectives. Our commitment to excellence has support- ed successful negotiation of agreements valued at more than one billion dollars and saved our clients hun- dreds of millions of dollars. Our deep understanding of the recycling and solid waste industry and associated contracting processes allows our team of qualified experts to: • Plan effective diversion programs and contractor services. • Generate tight, well- organized, and readable contracts. • Negotiate win -win contract terms and conditions. • Provide dependable industry benchmarks for cost and service comparisons. • Offer independent, objective proposal evaluations and contractor recommendations. "The most telling characterization of your firm's capability in managing complex procurement projects was the repeated accolades from the members of the Board of Supervisors." Gerry Newcombe Solid Waste Management Division Manager San Bernardino County SERVICES THAT MEET At HF &H, we offer a suite of recycling and solid waste contract services that meets the unique demands of each city and public agency. Our comprehensive solu- tions are designed to streamline every challenging contracting process your jurisdiction undertakes. Competitive Contractor Selection Processes We develop procurement strategies; evaluate and plan future program and contract needs; facilitate communi- ty workshops and public input activities; generate requests for proposals and requests for bids; prepare collection, processing, and disposal agreements; nego- tiate agreements; establish rates; revise municipal codes for consistency with new services; and support city council presentations. Contract Negotiations and Amendment Services We develop contract negotiation strategies, offer rec- ommendations on new or amended contract language prepare appropriate contract language, evaluate pro- posed services and costs, and assess rates compared to neighboring communities. Post - Contracting Implementation Services We provide transition management and monitoring assistance, post - implementation audits of contractor performance, and contract management and oversight assistance. ADVANTAGES YOU CAN TRUST Client Satisfaction Our clients have unanimously reported 100% satisfaction with our results, hire us again and again, and recommend our services to other jurisdictions with similar needs.` Incomparable Support HF &H delivers outstanding support every step of the way. We build long -term relationships and deliver long -term value for every client. Substantial Results We address your particular challenges and maximize your solid waste, recycling and diversion results. We've saved our clients millions of dollars collectively through expert monitoring of contractor compliance. One - Source Solutions As a team with extensive public sector and private hauler experience, we collaborate and offer compre- hensive solutions to your diversion compliance and contract performance issues. Get to know us and discover why we're the right choice for your contract development and negotiation needs. "Results of 2006 HF &H Client Satisfaction Survey conducted by Johnston, Gremaux & Rossi, LLP, Certified Public Accountants. Northern California Southern California • Contract Management Services 2175 N. California Boulevard. #990 3990 Westerly Place, #195 • Recycling & Solid Waste Contract Services Walnut Creek, CA 94596 Newport Beach, CA 92660 • Recycling & Solid Waste Audit Services 925- 977 -6950 949- 251 -8628 • Vehicle Impact Studies • Management & Operations Reviews Bob Hilton Laith Ezzet rhilton @hfh- consultants.com lezzet @hfh- consultants.com John Farnkopf jfarnkopf @hfh- consultants.com www.hfh- consultants.com Program Implementation, Diversion & Sustainability Services Recycling & Solid Waste Rate Services Funding Storm Water & Street Programs 'Service brochures are available upon request 1 SOLUTIONS Defending Your Rates Fair and sensible collection rates play a key role in your recycling and solid waste equation. That's why your jurisdiction needs to know if a request for a rate or compensation increase from your collection or material processing contractor makes sense. At HF &H, our in- depth rate and compensation reviews can prevent problems and ensure your collection rates are always right on the mark. Covered, Every Detail Our clients trust HF &H to provide expert evaluations of contractor rate /compensation modification applications, financial statements, operation records, and rate struc- tures. Our objective reviews and studies arm your juris- diction with every statistic necessary to successfully address contractor rate /compensation queries by: • Calculating contractor rates /compensation and alter- native rate structures to cover specified contractor and municipal costs and to maximize waste reduction goals. • Ensuring all current and requested recycling and solid waste rates /compensation are reasonable and sup- ported by accurate documentation. I First -Rate Results Our commitment to providing accurate and comprehen- sive rate and compensation studies and reviews allows us to consistently detect omissions, errors and over- sights. We have assisted approximately 100 communi- ties throughout the Western United States in success- fully analyzing requested rate /compensation increases. The results? Individual clients have saved millions of dollars in avoided contractor rate and compensation increases. • A recent HF &H collection rate review resulted in a reduction in a collection contractor's requested rate increase from 21.9% to 7.9% (based on more than a $1,400,000 reduction to the hauler's projected rev- enue requirement and a $342,000 increase in the hauler's projected revenue for the forthcoming rate period). • A recent HF &H processing facility compensation review resulted in a reduction in the facility operator's requested 2007 compensation from $29.8 million to $27.8 million —a savings of $2.0 million. "With each review of Marin Sanitary Service's Rate Application, your team's focus on details and industry experience has produced results that prove beneficial to the City ... yet are acceptable to the Company." Ken Nordhoff Assistant City Manager, City of San Rafael UNRIVALED RATE HF &H provides recycling and solid waste rate services tailored to meet the unique demands of each city and public agency. We provide consulting services exclu- sively to public agencies in order to avoid conflicts of interest in appearance and in fact that may arise in firms that serve both the public and private sectors. Our team of experts will work diligently to help you reduce costs and provide creative solutions to achieve your program goals. Our reviews provide you with the assurance of an independent, expert, and thorough verification of the reasonableness and necessity of the contractor's requested rate/ compensation increase. Compensation Procedures Reviews: We develop policies and procedures that streamline and standard- ize the preparation and review of requested rate /com- pensation increases to ensure common expectations and avoid antagonistic relationships. Cost of Service Studies /Rate Reviews: We analyze hauler revenue and expense financials, operations records, future plans, and projected financial results of operations to analyze the reasonableness of requested rate /compensation increases. We determine the equity of projected costs for providing a wide range of recy- cling and solid waste related services — including the use of split -body trucks, weekly versus bi- weekly col- lection, and residential and commercial food waste col- lection and processing. Rate Structure Reviews: We establish alternative col- lection rate structures to encourage more efficient serv- ice, waste reduction, and diversion. Northern California Southern California 2175 N. California Boulevard, #990 3990 Westerly Place, #195 Walnut Creek, CA 94596 Newport Beach, CA 92660 925 - 977 -6950 949 - 251 -8628 ADVANTAGES YOU CAN TRUST Client Satisfaction Our clients have unanimously reported 100% satisfac- tion with our results, hire us again and again, and rec- ommend our services to other jurisdictions with similar needs.' Incomparable Support HF &H delivers outstanding support every step of the way. We build long -term relationships and deliver long- term value for every client. Substantial Results We address your particular challenges and maximize your solid waste, recycling and diversion results. We've saved our clients millions of dollars collectively through expert monitoring of contractor compliance. One - Source Solutions As a team with extensive public sector and private hauler experience, we collaborate and offer compre- hensive solutions to your diversion compliance and contract performance issues. Get to know us and discover why we're the right choice for your recycling and solid waste rate services. 'Results of 2006 HF &H Client Satisfaction Survey conducted by Johnston, Gremaux & Rossi, LLP, Certified Public Accountants. Bob Hilton Laith Ezzet rhilton @hfh- consultants.com lezzet @hfh- consultants.com John Farnkopf jfarnkopf @hfh- consultants.com www.hfh- consultants.com • Contract Management Services • Recycling & Solid Waste Contract Services • Recycling & Solid Waste Audit Services • Vehicle Impact Studies • Management & Operations Reviews Program Implementation, Diversion & Sustainability Services Recyclign & Solid Waste Rate Services Funding Storm Water & Street Programs *Service brochures are available upon request L 1 SOLUTIONS Street Maintenance Dilemma Many cities now struggle with the difficult task of fund- ing adequate street maintenance. State and local budg- ets continue to decrease. Gas taxes are stretched thin. Public street use continues to grow. As if this weren't enough, statistics prove that refuse, construction, and transit vehicles can cause up to 60% of total vehicle damage to public streets annually —which can cost jurisdictions tens of thousands to millions of dollars to repair. How can this damage from heavy -duty vehicles be proven and how can maintenance expenses be recovered from parties creating the damage? Fortunately, HF &H has solutions. Premium Studies, Lucrative Solutions Clients rely on HF &H when they need experts to evalu- ate street deterioration factors, measure the impact of refuse, construction and transit vehicles —and provide street maintenance funding solutions. As leaders in this arena, we help jurisdictions achieve street maintenance funding goals by: • Conducting proven impact studies to assess and doc- ument the detrimental effects that heavy -duty vehi- cles impose on public streets. • Developing innovative funding strategies to equitably recover maintenance costs from responsible parties. �5 Innovative Ideas Abound HF &H understands that jurisdictions must find new ways to acquire revenue in order to maintain safe, high - quality roadways. Our studies substantiate that one way to fund street maintenance is to initiate Refuse Vehicle Impact Fees in addition to franchise fees. Our experts help clients calculate and establish appropriate Refuse Vehicle Impact Fees based on vehi- cle usage for regular collection services and, if applica- ble, at solid waste and /or recycling facilities within juris- dictions —which can contribute hundreds of thousands of dollars annually toward street maintenance. Remarkable Results California jurisdictions have reaped the rewards of HF &H refuse vehicle and facility host impact studies: • The City of Fresno identified $726,000 in Refuse Vehicle impacts; $597,000 in Transit Vehicle impacts; and $7,912,000 in Construction Vehicle impacts. • The City of Livermore now collects approximately $1,823,000 annually to assist with street mainte- nance related to Refuse and Construction vehicles. "On behalf of the City of Livermore Public Works Department, I would like to take this opportunity to express my satisfaction and appreciation for the outstanding services provided by HF &H" Dan McIntyre, P.E. Public Works Director, City of Livermore VALUABLE IMPACT STUDY HF &H studies accurately measure the damage caused to city streets by refuse, construction and transit vehi- cles. Our studies often find that the damage caused by heavy -duty vehicles produces a disproportionate finan- cial burden that can be alleviated. HF &H performs the following studies to help determine the impact of various vehicles and facilities on street quality: Recycling and Solid Waste Vehicle Impact Studies: We collaborate with our clients' service providers to dis- tinguish the physical impact of and associated mainte- nance expenses from collection vehicles regularly oper- ating on public streets. Construction Vehicle Impact Studies: We analyze building permit volumes, construction categories, traffic classifications, and street quality to determine street maintenance impacts and associated maintenance expenses of building activity. Transit Vehicle Impact Studies: We study vehicle types, routing, ridership, and trip frequencies of bus transit systems to calculate the impact on public streets and associated maintenance expenses. Facility Impact Studies: We work with host jurisdic- tions and facility operators to establish the impacts of hosting regionally used facilities in their jurisdictions and to set reasonable host fees for those facilities. Northern California Southern California 2175 N. California Boulevard, #990 3990 Westerly Place, #195 Walnut Creek, CA 94596 Newport Beach, CA 92660 925- 977 -6950 949 - 251 -8628 ADVANTAGES YOU CAN TRUST Client Satisfaction Our clients have unanimously reported 100% satisfac- tion with our results, hire us again & again, and recom- mend our services to other jurisdictions with similar needs.' Incomparable Support HF &H delivers outstanding support every step of the way. We build long-term relationships and deliver long- term value for every client. Substantial Results We address your particular challenges and maximize your solid waste, recycling and diversion results. We've saved our clients millions of dollars collectively through expert financial analysis. One - Source Solutions As a team with extensive public sector and private hauler experience, we collaborate and offer compre- hensive solutions to your diversion compliance and contract performance issues. Get to know us and discover why we're the right choice for your vehicle impact study and street maintenance funding solutions services. 'Results of 2006 HF &H Client Satisfaction Survey conducted by Johnston, Gremaux & Rossi, LLP, Certified Public Accountants. Bob Hilton Laith Ezzet rhilton @hfh- consultants.com lezzet @hfh- consultants.com John Farnkopf jfarnkopf @hfh- consultants.com www.hfh- consultants.com • Contract Management Services • Recycling & Solid Waste Contract Services • Recycling & Solid Waste Audit Services • Vehicle Impact Studies • Management & Operations Reviews • Program Implementation, Diversion & Sustainability Services • Recycling & Solid Waste Rate Services • Funding Storm Water & Street Programs 'Service brochures are available upon request 1 • s 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 • 1 1 i 1 1 1 1 1 1 1 1 1 1 1 1 1 1 i 1