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RFP No. 2022-28 Addendum No. 2 (Combined) Issued 01-13-2023 ADDENDUM NO. 2 To all prospective consultants under Request For Proposal No. 2022-28 1. RFP Schedule Questions: With the delay in releasing the draft agreement to the proposers, it is our understanding that the submission deadlines for questions as well as final proposals has been extended. Will the City please confirm what dates these extended deadlines will be? Considering the holiday season, and that answers have not been provided to first set of questions, the City extend the due date by 2 weeks? Will the City delay the submission date by one additional month to give proposers adequate time to prepare proposals and additional time for the City to thoroughly respond to proposer questions? In light of the 2022 holiday season, there is not adequate time for proposers to analyze and account for the City’s answers to proposer questions in our proposals prior to the January 18, 2023 submission deadline, given the complexity and scope of the agreement. Answer: This Addendum extends the proposals due date to 10:30 a.m. on January 26, 2023. The full procurement schedule, previously revised in Addendum No. 1, is updated below with deletions noted with strikeout and new additions noted in bold red text. TABLE 1 – Procurement Schedule (Revised Addendum No. 2) Activity Date RFP Released November 17, 2022 Mandatory Pre-Proposal Video Conference December 5, 2022 at 2:00 pm Last Day to Submit Questions December 15, 2022 at 2:00 pm December 22, 2022 at 2:00 pm Proposals Due January 12, 2023 at 10:30 am January 19, 2023 at 10:30 am January 26, 2023 at 10:30 am MAYOR: SEAN DANG MAYOR PRO TEM: STEVEN LY COUNCIL MEMBERS: SANDRA ARMENTA MARGARET CLARK POLLY LOW City of Rosemead 8838 E. VALLEY BOULEVARD ROSEMEAD, CALIFORNIA 91770 TELEPHONE (626) 569-2100 FAX (626) 307-9218 TABLE 1 – Procurement Schedule (Revised Addendum No. 2) Activity Date Interview Qualified Proposers February 16, 2023 Week of February 20, 2023 Present Evaluations Results to City Council March 28, 2023 Finalize New Agreement for City Council Approval April 10, 2023 City Council Award of Agreement May 9, 2023 Hauler Transition May through July 2023 Start Integrated Solid Waste Handling Services August 1, 2023 2. RFP Revisions Question: It appears that some terms of the RFP conflict with the language of the proposed agreement. Will the City please clarify which document controls in the event of a conflict? Section C, Proposed Service, Point 21, Billing Audit, Financial Audit & Performance Review & Form H. The amount the contractor is responsible for is conflicting in these two sections. Section 21 says 100%, while Form H says 50%. Please clarify. Answer: Refer to Section 3.2 of the RFP: For the purposes of this RFP, in the event of any conflicting information, the definitions and terms contained in the Draft Integrated Solid Waste Handling Services Agreement apply. An updated Form H is attached to this Addendum No. 2 in electronic form (Attachment 1). Question: Section C, Proposed Services Point 4.2. This point conflicts with Points 4.4, 4.5 & the Forms. Please confirm that all customers should get one 96-gal recycling & one 32-gal organics as part of the bundled service. Answer: The RFP Section C, 4.2, is revised as follows; deletions to the RFP text are noted with strikeout: 4.2. Commercial Bundled Service - The City wishes to retain a weekly Commercial Solid Waste Collection Service system, using Carts and/or Bins as requested by the Commercial Service Recipient, and including at no additional cost the equivalent volume of Garbage and Recycling Collection Service, with a minimum of at least one (1) 96-gallon Blue Recycling Cart per Service Recipient, and one (1) 32-Gallon Green Organic Waste Cart per two (2) cubic yards of Garbage as part of the base Commercial Collection Service. The actual configuration of Recycling and Organic Waste Cart and/or Bin sizes shall be based on the total equivalent volume and configured in a manner determined by the Service Recipient in consultation with the Contractor. Proposers are required to provide pricing for collection of the base services and for any additional services that may be requested by the Commercial Service Recipient. Question: Section E, Evaluation Criteria: Can the City provide the scoring to be used when evaluating the proposals? Answer: The RFP describes the criteria that will be used when considering the proposals and no weights have yet to be developed. 3. Audited Financial Statements Question: Section C, Proposed Service, Point 2.3: required audited financial statements. As a privately held company in a competitive business, the company would like to maintain the confidentiality of its financials. In other bid processes we have provided for a review of audited financials. Would the City allow an in person review of certified financial statements in lieu of a submittal? Answer: Yes, the City will allow an in person review by the City or its agents of certified financial statements in lieu of a submittal to keep the material confidential. 4. Collection Services Question: Section C, Proposed Service, Point 2.6, Additional Services, Curbside Collection: indicates household batteries & e-waste will be collected. How many times per year? Is this part of the bulky item collections or a separate collection service? Answer: Refer to Sections 1.18 and 1.91 D in the Draft Agreement, and the revisions to the Draft Agreement (#23) below. Electronic Waste shall be collected with bulky item collections and dry cell household batteries are included in the weekly recycling service. Question: Section 7.08. This section seems to conflict with Section 7.07. We read this to say that Contractor can discontinue service to Commercial Customers upon written notice to the Service Recipient and the Agreement Administrator, but cannot discontinue service for SFD or MFD Customers under Section 7.08. Will the City please confirm? Answer: An SFD or MFD Service Account shall not be discontinued for health and safety reasons. Contractor may take actions necessary to collect past due invoices, including discontinuing service for a commercial customer, with 30 days written notice to the customer and Agreement Administrator. Question: RFP - Are bulky item requirements applicable to all multi-family dwelling units or rather multi-family service accounts? Answer: Refer to Section 11.10 of the Draft Agreement. A property manager will arrange Bulky Item collection up to 5 times in a calendar year equivalent to a total of six large items or 10 32-gallon bags from each MFD property. Question: Section 11.10.1. Please clarify that the six large items listed in line 1795 is a typo, as it is inconsistent with the other sections regarding Bulky Waste collection which each permit five large items per collection. Answer: This is not a typo. Each Service Recipient (not Dwelling Unit) will be entitled to up to six Large Items collected per MFD Bulky Waste Collection. The selected Contractor will provide MFD Bulky Waste Collections Services at each MFD Service Unit up to five times per year. 5. Form K Question: Will the City consider one residential bundled rate regardless of the customer's requested cart sizes? By offering discounted rates for trash carts in sizes smaller than the default 96-gallon cart, residents will be economically incentivized to request the smaller carts and inevitably increase the amount of contamination found in their recycling and organics carts. This is especially true with residents being able to receive unlimited cart quantities of recycling and organics at no additional charge. Answer: Proposers must provide pricing for all container sizes in Form K. Questions: Form K, Tab B & C. The RFP states Contractor will provide Organics (yard & food waste), however, Form K also shows stand alone yard waste (if applicable) and food waste (if applicable). Please clarify the intent of this service option. Form K - Street Sweeping - Will the form be revised now that only Option 3 applies? Can the city provide revised rate sheets? Answer: A revised rate sheet has been attached to this Addendum No. 2 (Attachment 2). Contractor may include rates if they differ from mixed Organic Waste collection rates for Yard Waste only or Food Waste only collection service. These are optional rate categories. A revised rate sheet has been attached to this Addendum No. 2 to remove Options 1 and 2 from Street Sweeping Services, Tab D. 6. Franchise Agreement Alternatives/Exceptions Questions: Sample Agreement - Sec 6.03.2 - Given the current economic conditions, would the City consider raising the Maximum Annual Rate Adjustment to 5% and applying it to the Contract collection Services costs only and allowing for a pass through of the actual disposal and processing costs? Section 3.02 and Section 3.03.4. Will the City please remove Organic Waste from these sections? After discussions with CalRecycle, we understand that Organic Waste may not be donated because it is a putrescible waste, not a commodity. As such, it should not be subject to exceptions for donation like Recyclable Materials. Section 5.07. This section requires Contractor to tag containers as part of its contamination monitoring procedures. Unfortunately, it is our experience that tagging Containers creates increased safety risks by requiring drivers to get in and out of their vehicles, is less efficient and not an effective means of correcting behavior. In fact, some Customers respond negatively to tags which does not promote compliance. As such, will the City approve notification to customers using electronic means? 6.03.2 Annual Rate Cap on Maximum Service Rates - What has been typical is a 5% cap. Will City consider increasing this percentage? In section 6.03 – City allows 100% of CPI, based on choice of index, but limits annual adjustments with a 4% cap. Will the City consider adjusting this cap to 5% to better align with the current market conditions of the various indices? 6.06.2 Review Costs - Request usually take only a couple of days to review. This amount appears excessive. Market Rate Review - Comparing only 3 yard one time per week can produce some unforeseen anomalies considering that the entire bundled mix of rates may lean in other size bins that compensate for higher or lower rates on the 3 yard rates. We do not recommend this be a means of adjusting rates on pure market rate reviews. Section 6.09 Market Rate review appears to undermine the purpose of bidding and having an adjustment mechanism for competitively secured fair rates after the RFP process. The cities in comparison also consist of various sizes, service offerings, and contract commencement dates for when rates would have been originally established. Would the City consider removing this section altogether? Section 10.01.2. This section appears to conflict with the rate sheet and subsequent sections that permit providing additional Recyclable Material and Organic Waste Carts for a rate set forth in Exhibit 1. Will the City please remove the sentence beginning on line 1374 and ending on line 1375 accordingly? Section 10.04. This section requires Contractor to supply kitchen pails to all Customers. However, it is our recent experience in multiple cities that some Customers do not want or use the pails. Will the City change this section to state that Contractor will provide kitchen pails upon request of the customer? Would the City be open to only distributing Kitchen Pails to customers that request it? Section 10.09.1. As written, this section requires that all Organic Waste collected shall be diverted. Will the City please clarify that all source separated Organic Waste collected shall be diverted? The agreement contemplates situations where some Organic Waste may be contaminated such that it cannot be diverted. Section 10.10.6. Will the City please provide the basis for the 20 mile restriction in this section? Further, will the City please remove this restriction? A 20 mile boundary seriously limits reuse or recycling options. Section 10.12. Will the City please revise this section to state that Contractor shall reuse or recycle materials collected at these collection drives to the extent that there are commercially available markets to reuse or recycle such materials? There are currently no markets available for textile or carpet diversion that are available on a commercial scale. Section 12.02.2.1. Will the City please revise this Section to state that Contractor must only replace Carts and not Bins? Replacement of Bins is very expensive, and Bins are generally not lost, destroyed, or stolen, given their design and size. Section 14.01.3. Is the City amenable to transitioning from the current city trash cans to cans that would allow for automated service? Section 16.04. Due to safety concerns, we are not able to permit non-employees from riding in our collection vehicles. Will the City please remove this requirement? Section 17.01.4. Will the City please add mutually agreeable language to this section during negotiations providing for protection of Contractor’s confidential information, proprietary information, trade secrets, and other intellectual property? Section 20.02.11. Rather than mailing material in multiple languages, will the City please consider permitting Contractor to provide materials in English and have instructions for receiving information in additional languages? For example, a Customer may either call customer service to obtain information in a particular language or Contractor may provide a QR code in all educational material that gives access to the material in the various required languages. Section 20.06. Is the City open to replacing labels as needed (e.g. replace for wear and tear or updated acceptable materials) as part of the maintenance/replacement of Carts and Bins, rather than replacing these annually? Section 20.07. Will the City please clarify that Contractor will support the City’s Edible Food Recovery program by performing its education and outreach activities under this Agreement and will provide data and information from records Contractor is required to maintain under this Agreement? As drafted this section is ambiguous as to the scope of support Contractor is required to provide. Section 22.02.2.1. Will the City please remove the requirement to report marketing and sales of recyclable material payments? This information is proprietary and cannot be made public. Section 47.02. Will the City please clarify this section by adding at the beginning of line 3479: “Subject to Applicable Law governing data security, privacy, and confidentiality, including without limitation the California Consumer Protection Privacy Act of 2018 (Civ. Code, § 1798.100 et. seq.), any records or documents…” Contractor is obligated to protect certain information from disclosure under Applicable Law. Exhibit 6. Will the City please provide its basis for the penalty amounts detailed on Exhibit 6 and detail how the City determined these amounts were a reasonable estimate of damages for the alleged failure? Some penalties listed in this Exhibit are determinable at the time of assessment and are therefore unlawful penalties. Other penalties are unduly burdensome on Contractor. Will the City permit mutually agreeable revisions to this Exhibit during negotiations? The Draft Agreement allows for excess corrugated cardboard to be placed adjacent to the recycling container, if laid flat, and requires the Contractor to collect. Would the City consider adding this requirement to the customer requested bulky item program? Excess materials of any kind that do not fit within a customer's container(s) becomes highly problematic for automated collection vehicles/services. Will the City consider a 64-gallon cart rather than a 32-gallon cart for multi-family and commercial business customers as part of their bundled rate package? These entities tend to have more organics volume per week than the 32-gallon capacity, especially when these customers are to receive commingled (food + yard waste) organics collections as outlined in the RFP. We understand the City requires 4 languages to be included in all outreach materials and displayed on all of the contractor's equipment (including carts/bins). Will the City consider the use of QR codes for accessing multiple languages? If not, is the City willing to accept any other form of consolidating the display of multiple languages? Answer: Proposers may submit alternatives to the services listed in this RFP, or exceptions to the Franchise Agreement language. Please note that the City has no obligation to accept any proposed service alternative or Franchise Agreement exception. Proposals will be evaluated based on the required services and Agreement language as set forth in this RFP. 7. General Draft Agreement Questions Questions: Section 1.51. This definition appears to conflict with the definition of Bulky Waste in Section 8.32.020 of the Municipal Code, which states that consumer electronics, such as televisions, radios, computers and monitors are regarded as universal waste. Will the City please revise the definitions of Bulky Waste, Electronic Waste, and Universal Waste in the Agreement accordingly? Section 1.54. Will the City please remove this definition, as it appears to be a typo? The section it references (Section 8.01.3) does not exist in the draft, and this definition conflicts with the definition of Diversion Compliance above. Section 1.80 and Exhibit 12. Section 1.80 states that the Recyclable Materials can be determined by the Agreement Administrator. Further, Exhibit 12 is designed to be a non-exclusive list of material. However, the types of acceptable materials is determined by what the applicable facility can accept. Will the City please revise Section 1.80 to reference the list on Exhibit 12 and permit proposers to revise Exhibit 12 to reflect the materials the applicable facility is able to accept? Section 22.02. Will the City please provide the criteria for which an account can be placed on a vacation hold? 4.03 Quarterly Fees and Payments and 22.02.1 Quarterly Reporting - We are requesting that both payments and reports are due on the last day of the month following the end of the Quarter. Section 5.04. Will the City please clarify that these inspections shall occur upon reasonable advance notice to Contractor? Section 5.07. This section states that Customer contamination is measured per Calendar Year. Will the City please change this to a rolling twelve month period? A rolling twelve month period results in more consistent monitoring and correction of behavior. Section 5.18. Will the City please clarify that Contractor shall use commercially reasonable efforts to secure guarantees of capacity for Green Waste and Organic Waste at the facilities listed in Exhibit 9? We are unable to control the capacity of facilities that are owned or operated by third-parties. Section 6.03. Will the City please clarify in line 970 that adjustments shall be made in accordance with Section 6.06 and Section 30.01? This appears to be inadvertently limiting and does not address extraordinary adjustments under Section 6.06. Sample Agreement - Sec 6.03.1 - States the CPI adjustment will be based on the CPI for February 1, 2022 through January 31, 2023. The January index is not available until mid-February. Sec 6.03.4 requires the rates be submitted by March 1st. Would the City consider moving the index to January 1, 2022 through December 31, 2022 to allow time for the index to be received & and included in the rate calculations? As an alternative, would the City consider moving the submittal date to April 1st? Section 8.08. This section includes an indemnity that conflicts with the indemnity language in Section 28.04. Will the City please revise this section to remove (4), or revise (4) to state: in accordance with Section 28.04, promptly pay any and all… Section 28.06. This section includes an indemnity for claims of Contractor against City Indemnities related to Proposition 218 processes, but appears to be unintentionally overbroad. Will the City please clarify that Contractor will indemnify City Indemnitees against claims resulting from Maximum Service Rate adjustments or additional rates that are prohibited as a result of the Proposition 218 process? Answer: Refer to revisions to the Draft Agreement (#23) below. 8. Relationship Management System / Customer Service Question: Section 24.01. Will the City permit alternative proposals that remove the requirement to use the Resident Service Center or other relationship management system put in place by the City in favor of Contractor’s customer relationship management system? Answer: No. As noted in the RFP, Section D Response Format #1, “Only one (1) proposal from any individual, firm, partnership, or corporation under the same or different names will be considered.” 9. Flow Control Rights Questions: The City has reserved the right to exercise its flow control rights under the agreement. Will the City please provide a list of facilities that it is considering or expects it may require waste to be directed to? In addition, will the City please clarify in this Section that the exercise of City’s flow control rights shall qualify as a City-directed change under Section 30.01? Section 30.01. Throughout the agreement, some sections include language that state that the City may exercise its right to flow control. Answer: Intent to include flow control rights was to cover City in the event a facility the hauler is using does not meet SB 1383 processing requirements. No, it is the responsibility of the Proposer to identify the facilities it intends to use and notify the City of any subsequent changes. A City directed change will likely only be based on poor Contractor performance. Question: In section 11.08.5, can the City please clarify under what instances or circumstances the City would exercise the right to designate a Materials Recovery Facility for recyclable processing? If such facility change request were made, would the Contractor be eligible to receive a rate adjustment to account for any increases in tip fees, transportation costs, etc.? Answer: The City cannot predefine why a facility change might occur. Whether or not the facility changes will depend on the reason for the change, such as was it a Contractor failure to perform or a city designated change. 10. Service Rates Question: Section 6.02. Please provide the low, lower, and extremely low income thresholds for the services contemplated in this Section. Answer: Refer to California Housing and Community Development income limits found here: https://www.hcd.ca.gov/grants-and-funding/income-limits Questions: Section C, Proposed Services 16: Given the uncertainty of disposal and processing costs, would the City consider allowing a pass-through of disposal/processing costs with the appropriate back-up supporting the cost analysis? Section 6.03.1. Will the City consider alternative rate adjustment methodology that allows Contractor to recover increased disposal/processing costs as a pass-through cost? Answer: The City has requested rate-based responses and it is the responsibility of the Proposer to propose amounts that they are comfortable with, subject to inflationary adjustments for the term of the agreement. Question: 6.03.1 CPI Adjustment Calculation For Rate Year 2025, beginning on July 1, 2024, and for subsequent years thereafter, the rates shall be adjusted based on one hundred percent (100%) of the 12-month average change in the CPI for the 12-month period published immediately prior to the rate application. Therefore, the first rate adjustment effective July 1, 2024, will be based on the percentage change between the 12-month average of the CPI from February 1, 2022 through January 31, 2023, and the 12-month average of the CPI from February 1, 2023 through January 31, 2024. The index to be used shall be the [insert index].- CUURS49ASA0, All Urban Consumers, Los Angeles-Long Beach-Anaheim, not seasonally adjusted we feel is best suited to the economic conditions in the Rosemead area. Answer: Proposers shall propose a preferred index to be used for the term of the agreement. Question: 6.03.4 Maximum Service Rate Adjustment Report - The ending index of January 31, 2024 is usually not available until mid February leaving only 2 weeks to complete the package by March 1. Will the City change the due date or the CPI index from Feb 1 – Jan 31 to Jan 1 – Dec 31? Answer: Refer to revisions to the Draft Agreement (#23) below. Question: Sample Agreement - Sec 6.02 - Senior/Low Income Discount - Does the City have a preferred discount percentage? Answer: The City would prefer to use a senior/low income discount program that is already established, such as the CARE program, which is used by Southern California Edison. Question: Section 6.09. To perform an equitable market rate analysis, the services offered and contractual obligations of the contractor in each jurisdiction must be substantially similar, as the services and unique circumstances in an individual jurisdiction impact the rates. However, the services offered and contractual obligations in the jurisdictions listed in this Section are dissimilar and vary significantly. As such: 1. Will the City please limit the Market Rate Review to jurisdictions serviced by contracted private companies with exclusive service rights with similar services and similar obligations as those detailed in the Agreement? 2. Will the City please include same service levels and bundled pricing in the Market Rate Review analysis to ensure equitable rate comparisons? 3. Will the City agree to work with the Contractor, as needed, to perform an equitable analysis to gather the necessary records to conduct a Market Rate Review, such as the fee structures contained within the comparison jurisdictions published rates? Answer: The City will work with the selected contractor to amend the draft agreement during negotiations. Proposers may submit alternatives to the services listed in this RFP, or exceptions to the Franchise Agreement language. Question: Section 21.03. Will the City please clarify that Contractor will be compensated at agreed upon rates for emergency support services? Answer: Refer to Section 21.01 of the Draft Agreement. 11. Contract Term Questions: How will the City be determining whether the contract term will be established for 10 or 15 years? Does the City intend to use specific criteria for determining the term length, and if so, what are the criteria? Is it either term option, or will the City consider a 10-year fixed term with an optional one 5-year extension? Section A, Instructions Point 11.1: What is process the City will use to decide the exact Term of the Contract? Can the City provide the exact Term of the Contract? 2.01 Term of Agreement - The RFP is requesting additional pricing for 15 year term. Will contract be changed for this term, or is it option to extend? Answer: The City will only consider a 10-year fixed term or a 15-year fixed term. The City Council was not interested in a contract that had extensions but would consider a term of 10 or 15 years. The proposer should identify what, if any, impacts the longer term would have on its proposal, financial or otherwise. 12. Street Sweeping Questions: RFP-PG.26: 6.2. Residential and Commercial Street Sweeping Service is to begin after 7:00 a.m. and before 7:00 p.m. The streets for Street Sweeping Service are to be designated by the City. Current times for commercial are 2am-6am and residential posted times start at 6am and end time is 2pm are times changing? Addendum NO. 1 PG.3: 6.2 - Please confirm Commercial/Arterial times? Please confirm residential times? Answer: As reflected in the Draft Street Sweeping Services Contract, Exhibit A, Item 11, arterial streets and commercial streets shall be swept from 2:00 am to 6:00 am, and residential streets shall be swept between 6:00 am and 4:00 pm. Questions: Can you provide the cost to change street sweeping signs? How many signs need to be changed? What is the projected cost to change street signage and who will cover that cost? Answer: The existing street sweeping signs do not need to be changed. The City Council voted to maintain the existing street sweeping schedule. Form K, Tab D has been revised to remove fillable fields for Street Sweeping Option 1 and 2. Question: It is our understanding that the Rosemead City Council voted on 12/13/22 to maintain Option 3 (no changes) to the current street sweeping schedule. This said, will the City please clarify whether the street sweeping services will be issued as its own separate RFP, or are the street sweeping services still required as a component to the solid waste bidding process? If these services are still part of the solid waste RFP, are the proposers now required to bid only on Option 3 for the street sweeping services? Answer: Refer to Addendum No. 1, #5 and the Draft Street Sweeping Agreement. Questions: Will the City consider issuing a separate RFP for street sweeping services that is fully independent of the solid waste RFP? A separate RFP for these services encourages a competitive bidding process and removes any financial impact to the solid waste rates. Are proposers required to submit proposals for both collection and sweeping? Answer: Yes, proposers are required to submit proposals for both collection and street sweeping services. Refer to Addendum No. 1, #5 and the Draft Street Sweeping Agreement. Question: Addendum NO. 1 - PG. 3: Option 3 - New documentation calls for contractors' responsibility, please confirm. Answer: Confirmed. Question: Addendum NO.1 PG. 3: Option 3 - New documentation calls for 5 MPH, please confirm. Answer: Confirmed. Question: Addendum NO. 1-PG.3: Option 3 - Attachment 2 : PG. 14: item 10 Street Sweeping Frequency 10.1 - Please confirm schedule. Are services reducing from weekly to 2xs a month? Answer: Please refer to the revisions to the draft Street Sweeping Services Contract (#24) below. Question: Addendum NO. 1 - Attachment 2 - PG. 14 : 10.3 - Please provide parking lot list. Please provide time of service per parking lot. Answer: Refer to Attachment 4. 13. City Collection Service and Transit Shelters Questions: Can you provide # of City cans that will need service? Is there a map available? Confirm total public trash can count. Answer: Refer to Exhibit 3 of the Draft Agreement. Question: RFP-PG25,26:5.2. Collection from City Transit Shelters - The Contractor will provide Garbage collection services to public trash cans and City-owned bus stops not less than three (3) days per week, at no cost to the City. This service will also include minimally annual power washing public trash cans and maintaining cleanliness in and around the trash cans. A list of current locations will be provided in the Draft Integrated Solid Waste Handling Agreement. RFP calls for minimum of 3-day collection, if more collection is needed are we able to charge for additional times? Answer: Proposers shall include any additional proposed charges in Form K, Tab D. Question: Confirm frequency of minimally annual power washing for public trash cans. If more washing is needed are we able to charge for additional times? Answer: The frequency for power washing has been addressed in the Revisions to the Draft Agreement (#23) below. Proposers shall include any additional proposed charges in Form K, Tab D. Question: Will the city provide liner replacements for damaged or missing liners/trash can insert? Answer: No, the replacement bags and liners are provided by the waste hauler. Question: Are trash bag liners currently being used? Answer: Yes, trash bag liners are currently being used. Question: PG. 58 under Article 14 - 14.01.3 - What is the trash service frequency needed? What is the frequency for power washing? Answer: Trash service shall be provided not less than three (3) days per week. The frequency for power washing has been addressed in the Revisions to the Draft Agreement (#23) below. 14. Good Corporate Citizenship Question: What is the sponsorship amount Republic Services contributed to the Concerts in the Park? Answer: This information is unavailable. Question: How many annual scholarships? Amount per scholarship? Answer: In 2022, Republic Services awarded 5 scholarships totaling $5,000. Question: Can you provide the number of communities of life clean up events expected annually? Answer: Republic Services provided 2 cleanup events in 2022. Question: Provide details of the current recycling rewards program. Answer: City of Rosemead Residents can earn gift cards by taking a recycling survey. At the end of each quarter, Residents that submitted survey responses are entered to a raffle for gift cards. 15. Customer Rates and Billing Question: Can you provide Net and Gross rates? Answer: Customer rates are available on the City’s website: https://www.cityofrosemead.org/government/city_departments/city_clerk/bids_and_rfps Question: Could we get all rates associated with container types? Please provide all net rates as well. Answer: Customer rates are available on the City’s website: https://www.cityofrosemead.org/government/city_departments/city_clerk/bids_and_rfps Question: Service recipients will be billed quarterly, does this include commercial and Roll-off? Answer: Refer to the Draft Agreement, Section 7.03. Contractor shall invoice Service Recipients once every month for Commercial Service Units, MFD Service Units and MXD Service Units and once every Quarter for SFD Service Units. Question: Will the CPI change or remain the same? Changes to “What is the CPI that will be used for the contract?” Answer: Proposers shall propose a preferred index to be used for the term of the agreement. Question: Is there a cap on the CPI? Current agreement has a cap. Answer: Refer to the Draft Agreement, Section 6.03. In any Rate Year that the calculation of the CPI exceeds four percent (4%), the total adjustment for that year will equal four percent (4%) and the rollover amount will be added to the rate adjustment percentage in the following year, or any subsequent year. If the CPI is negative (after accounting for any applicable rollover percentages from prior years), there will be no CPI adjustment for that year. Question: The rate sheet does not have a section for 32-gallon cart pricing. Can you update and resend? Applies to MF and commercial for all commodities. Answer: A revised rate sheet has been attached to this Addendum No. 2 to include 32-gallon cart pricing for multi-family (Tab B) and commercial (Tab C). Question: Will the City please confirm what specific Consumer Price Index the annual rate adjustment will be based upon? Answer: Proposers shall propose a preferred index to be used for the term of the agreement. Question: Will the City accept the implementation of contamination and extra yardage fees to help promote behavior changes by the customers? Answer: Refer to Form K, Tab D for Additional Service Rates. If Proposers have additional collection container sizes, frequencies, fees, or service options not included in Form K, please add them in the “Other” section with the corresponding rates. Proposers may submit alternatives to the services listed in this RFP, or exceptions to the Franchise Agreement language. Please note that the City has no obligation to accept any proposed service alternative or Franchise Agreement exception. Proposals will be evaluated based on the required services and Agreement language as set forth in this RFP. Question: Section 6.06.1. This section appears to have a defined term that has been removed from the draft. Line 1067 uses the defined term “Records” that does not appear to be defined in the draft. To clarify, will the City please add the following sentence at the end of this section: For the purposes of this Section 6.06.1, “Records” shall mean records created or maintained by Contractor in accordance with this Agreement, including those records that may include Financial Statements or Confidential Information of Contractor. Answer: Refer to revisions to the Draft Agreement (#23) below. 16. Contractor Payments to the City Question: Please provide the amounts for the following? a) Procurement Fee b) Mitigation Fee c) Annual SB1383 and Admin Fee d) Billing / Audit Fee Answer: For the Procurement Fee, Mitigation Fee, and Annual SB 1383 and Admin Fee, refer to Addendum No. 1, #7 and Draft Agreement, Article 4. For the Billing / Audit Fee, refer to the Draft Agreement, Article 17. Question: What is the current Franchise Fee %? Answer: The current agreement set a minimum annual franchise fee revenue of $500,000 or 10% of gross receipts, whichever is greater. Question: Will the City please confirm the amount of the one-time procurement fee? Answer: Refer to Addendum No. 1, #7 and Draft Agreement, Article 4. Question: The Mitigation Fee proposed in the RFP does not appear to be based on the standards applicable to such fees as set forth in Proposition 26 and other applicable laws. Can the City please provide the legal basis for the establishment of the Mitigation Fee? Answer: Refer to Addendum No. 1, #7 and Draft Agreement, Article 4. Question: If the City intends to require the Mitigation Fee, will the City consider establishing a fixed financial amount that all proposers would be subjected to? Otherwise, there is no way for the City to equally compare proposed amounts amongst bidders. Answer: Refer to Addendum No. 1, #7 and Draft Agreement, Article 4. Question: Will the City please confirm the amount of the annual SB 1383 and Administrative Fee? Answer: Refer to Addendum No. 1, #7 and Draft Agreement, Article 4. Question: Section 4.04.1. Will the City please provide the current annual SB 1383 and Administrative Fees? Answer: The City does not have an established SB 1383 and Administrative Fee. The City is currently reviewing the mitigation, SB 1383, and administrative costs related to the Integrated Solid Waste Handling Services Agreement. The Mitigation Fee and Annual SB 1383 and Administrative Fee are fees subject to being set by the City Council and would be included as a pass through in the customer rate. Proposers should not include these fees in the proposed rate sheet. Question: 4.04.1 SB 1383 and Administrative Fees and Payments and 4.04.2 Mitigation Fees and Payments - Should the contract address that such fees are pass through fees and will be added to the rates? Answer: Addendum No. 1 stated "The City is currently reviewing the mitigation, SB 1383, and administrative costs related to the Integrated Solid Waste Handling Services Agreement. The Mitigation Fee and Annual SB 1383 and Administrative Fee are fees subject to being set by the City Council and would be included as a pass through in the customer rate. Proposers should not include these fees in the proposed rate sheet." The City will add these fees to the proposed rates and the final language will be reflected in the Agreement. 17. Service Data Questions: Can you provide number Multi-Family accounts and container count separately? Are these counts part of the Commercial Service Recipients or Residential Service Recipients? Section 10.08.4. Will the City please provide the number of MFD and MXD Service Recipients in the City, as well as information on the number of individual MFD and MXD Dwelling Units? Article 11 and Article 13. Is the City’s expectation that each unit in a MFD or MXD account will benefit from the service offerings included in the Residential Service (described in Article 10)? For example, are individual Dwelling Units in a MFD and MXD able to receive or request bulky waste and move in/move out collection service in the same manner as a SFD? If it is the City’s intent that each individual Dwelling Unit is able to receive the same service offerings included in the residential services, will the City please provide the precise unit count for MFD and MXD Dwelling Units? Section B, Background Table 2 of RFP & Table 3: Are the MFD account numbers included in the residential or the commercial account data (table 2)? Can the City split out the MFD accounts by service type? Answer: Service data has been provided in the Request for Proposals (RFP), Tables 2 and 3 to the extent it has been made available to the City. Multi-family accounts were included in the RFP, Table 2, as Commercial Service Recipient data. Attachment 3 includes an updated Table 2 with Commercial and Multi-Family information broken out separately. Question: Can you please provide 2022 tonnages by month through Nov? Answer: The following demonstrates the total tonnage collected by month in the City of Rosemead by the franchised hauler through November 2022. Multi-family and City facilities tonnage data is combined with Commercial tonnages. Tonnage Data January – November 2022 Single- Family Dwelling Commercial (includes MFD & City Tonnage) Roll off/Debris Box January 2022 2,238.84 1301.78 324.75 February 2022 1947.3 1166.55 399.4 March 2022 2194.86 1311.89 325.18 April 2022 2178.96 1261.3 356.85 May 2022 1892.84 1287.52 356.53 June 2022 2193.8 1301.23 322.21 July 2022 2124.79 1252.29 386.53 August 2022 2029.53 1380.64 502.17 September 2022 2064.63 1369.07 364.54 October 2022 1987.26 1376.37 311.23 November 2022 1996.38 1377.45 355.99 18. Education and Outreach Question: Is education and outreach annually? Answer: The selected contract will be required to submit an annual sustainability and compliance plan. Refer to the Article 20 in the Draft Agreement for additional details. Question: Section 20.02.11. Will the City please confirm how many events per year Contractor is expected to attend under this Section? Answer: The selected contractor shall attend two events per year and work with the City to identify which events will be attended. Question: Section 20.02.3. Will the City please provide details regarding its expectation of these school outreach programs? This section is unclear as to the scope of outreach to be performed. In addition, can the City please confirm if this waste service collection agreement will include the schools or does the school district have a separate agreement with a hauler? If the latter, the hauler providing services to the school district should provide such information and this requirement should be removed from this Agreement. Answer: Proposals will be evaluated based on their approach to providing effective and innovative strategies to delivering education and outreach materials to all service recipients. The provision of collection service at public schools do not fall under the City’s jurisdiction. Question: Section C, Proposed Services 8: Requires all service recipients be audited once a year for the first three years. Please confirm this refers to the commercial customers and not SFD or MFD. Answer: Refer to Draft Agreement Sections 20.02.6 and 20.02.7. 19. Trucks and Containers Question: Section 9 states that we can use newly painted bins, does that mean they do not need to be new and only in good condition? Answer: Yes, bins do not need to be new but should appear “like new” to the customer and be in good working order. Please refer to Exhibit 4 “Collection Container Specifications” for further details. Question: Section 10 states trucks must use RNG, does this mean they do not need to be new? Answer: Yes. Question: Will the City please confirm that trucks that are 10-years or newer and all alternative fuel types (including RNG, CNG and LNG) will be acceptable by the 2025 deadline as outlined in the RFP? Answer: Yes. Questions: Section C, Proposed Services, Point 2.6. Please confirm that the kitchen food waste pails are intended for SFD customers only and that MFD customers would not receive a kitchen food waste pail. RFP - Are kitchen pails required to be distributed to all multi-family dwelling units or rather multi-family service accounts? Answer: Refer to revisions to Exhibit 4 Section E4.04 of the Draft Agreement (#23) below. Contractor shall supply new kitchen food waste pails to all SFD and MFD Dwelling Units. Questions: In section 18, the Contractor shall transition all of its franchise residential and commercial collection vehicles to renewable natural gas (RNG) by December 31, 2025. Will the City please clarify if this RNG must specifically be derived from recovered organic waste sources? If so, how would the City enforce this provision if the fuel sources remain unavailable in the marketplace as is experienced today? Section 18.03. This Section requires that Contractor shall transition all of its collection vehicles to RNG by December 31, 2025. Will the City please revise this section to state that, to the extent that RNG is commercially available for us by Contractor in the City by December 31, 2025, Contractor will transition all of its vehicles? Answer: The City’s preference is to use vehicles fueled by RNG derived from recovered organic waste sources when commercially available fueling options exist. The City will work with the selected contractor to amend the draft agreement during negotiations. Proposers may submit alternatives to the services listed in this RFP, or exceptions to the Franchise Agreement language. 20. Diversion Requirements Question: Diversion of 50%? Is Rosemead protected under LARA? Answer: The City’s diversion is calculated as a combined number under LARA. Question: Will the City please confirm if the 50% diversion requirement is based on total tons collected from all lines of business and commodity types? Or is the 50% diversion requirement based on CalRecycle's per capita requirement as outlined by AB 939? Answer: The 50% diversion requirement is based on CalRecycle’s per capita requirement. Question: It is our understanding that the City of Rosemead belongs to the Los Angeles Regional Agency (LARA), and reports to CalRecycle as a JPA, is it the city's intention to have a diversion rate based on a set percentage? This is not a requirement of the Agency, which would increase costs to Rosemead ratepayers, if included. Answer: Yes, it is the City’s intention to have a diversion rate in accordance with the per capita requirement. Question: Section 8.01. Will the City describe the basis and method by which the City calculates Diversion Compliance? Please also provide the current diversion rate in the City. Answer: The City is part of a Regional Agency. The City will work with the selected contractor and stakeholders to amend the draft agreement during negotiations. 21. Displaced Employees Question: Does the city have any displaced employees? Can you provide a list with tenure and title information? Answer: The City has not been able to obtain displaced employee information. 22. Contaminants Question: Section 1.39. Will the City please remove this definition? Prohibit Container Contaminants is also defined, and it does not appear that the phrase “Contaminant” is used anywhere in the agreement. Answer: No, the term Contaminant also refers to Contamination which is used throughout the Draft Agreement. 23. Draft Agreement Revisions The Draft Agreement is hereby revised as follows, where deletions to the RFP text are noted with strikeout and additions are noted in bold red text: Section 1.18 Bulky Waste. “Bulky Waste” or “Large Items” has the same meaning as ”Bulky Item” as defined in Section 8.32.020 of the Municipal Code. “Bulky Waste” also means Solid Waste consisting of 214 discarded white goods, furniture, household appliances, carpets, automobile tires, shipping crates and containers, carpets, mattresses, oversized yard waste such as tree trunks and large branches if no larger than two feet in diameter and four feet in length, and similar large bulky or heavy items not normally discarded on a regular basis at a residential, commercial, or business establishment. which do not fit in a regular Collection Container and require special handling due to their size but can be collected and transported without the assistance of special loading equipment (such as forklifts or cranes) and without violating vehicle load limits. “Bulky Waste also includes Electronic Waste (E-Waste). It does not include abandoned automobiles and other vehicles, nor does it include items defined as Exempt Waste. “Bulky Items” do not include Construction and Demolition Debris or Electronic Waste, which are regarded as Universal Waste, the disposal of which is governed by the Department of Toxic Substances Control. Section 1.54 Reserved. Franchised Diversion. Franchised Diversion means the rate of diversion that Contractor is responsible to achieve as defined and calculated Section 8.01.3 of this Agreement. Section 1.80 Recyclable Materials. Recyclable Materials means those materials that are separated from Solid Waste prior to disposal to be recycled consistent with the requirements of the Act. Recyclable Materials that can be placed in the Recycling Container include but are not limited to, glass and plastic bottles, aluminum, tin and steel cans, metals, unsoiled paper products, printing and writing paper, and cardboard are listed in Exhibit 12, and any other items as determined by the Agreement Administrator. Section 4.03 Quarterly Fees and Payments. The following quarterly fees and payments shall be due and payable on the twentieth (20th) last day of the month following the end of each Quarter for which the Integrated Solid Waste Handling Services were provided; first such payment being due on October 20, 2023 October 31, 2023. The City Council may adjust the Quarterly Fees by resolution, in which case Contractor shall be entitled to a rate adjustment as a City-directed change in accordance with Section 30.01. The Quarterly Fees shall be accompanied at the time of payment by a written report, in a format acceptable to the City, setting forth the calculations Contractor used to determine the amount due and the basis for those calculations. Figures used in the report shall be taken from Contractor’s general books of account, and Contractor shall retain all supporting documentation in accordance with the records retention in Section 22.01. Section 5.04 Inspections. The City has the right to inspect Contractor’s facilities or Collection Vehicles and their contents used to provide services pursuant to this Agreement at any reasonable time while operating inside or outside the City without advance notice to the Contractor. Section 5.07.1 First and Second Occurrence. For the first and second occurrence within any one Calendar Year rolling 12-month period of contamination for a particular container (i.e., Recyclable Materials or Organic Waste), Contractor must collect the contaminated container (as Solid Waste) and must affix a Contamination Violation Notice to the contaminated container which contains instructions on the proper procedures for sorting Recyclable Materials or Organic Waste, and must notify the Service Recipient by phone, U.S. mail, e-mail, or in person (which may be a container tag), that for the third and subsequent incidents of excess contamination, the Service Recipient may be charged a contamination fee for the contaminated container, and Contractor may increase the Collection Container size, or require an additional Collection Container. Contractor’s representative must also contact the Service Recipient by phone, U.S. mail, e-mail, or in person (which may be a container tag) to ensure that they have the appropriate level of service for proper collection of Recyclable Materials and/or Organic Waste. Contractor must also document the contamination issue in the Waste Reporting System provide digital/visual documentation to the Service Recipient that clearly documents the Service Recipient’s on-going contamination problems. Section 5.07.2 Third Occurrence. For the third or subsequent occurrence within any one Calendar Year rolling 12-month period of contamination for a particular container (i.e., Recyclable Materials or Organic Waste), Contractor must collect the contaminated Container (as Solid Waste) and must charge the Service Recipient a contamination fee as set forth in Exhibit 1. Contractor must continue providing the Recyclable Materials or Organic Waste Collection Services. Contractor must provide (or have provided) digital/photographic documentation to the Service Recipient that clearly documents the Service Recipient’s on-going contamination problems and written Notices of contamination as described above. Contractor may increase the Container size or collection frequency and impose a contamination surcharge on the account for a period of six months or until the Service Recipient has demonstrated no contamination for a period of three consecutive months. Contractor must document contamination issue and surcharge in Waste Reporting System and notify City within five (5) Business Days if Contractor increases the Container size or collection frequency for excessive contamination or imposes the contamination surcharge to the account. City will consult with Contractor and consider, and pursue as applicable, appropriate legal remedies against offending Service Recipients to secure discontinuance of the contamination. Section 5.18 Green and Organic Waste Capacity. Contractor shall use commercially reasonable efforts to secure guaranteed capacity for all City Green and Organic Waste for the term of the Agreement using a facility listed in Exhibit 9. Section 6.03 Maximum Service Rate Adjustment / Prop 218 Process. The Maximum Service Rates in Exhibit 1 shall be adjusted on July 1, 2024, and annually thereafter in accordance with this Section 6.04. No other adjustments shall be made except as provided in Sections 6.06 or 30.01. Contractor understands and agrees that City may elect to or be required to comply with California Constitution Article XIII D (Proposition 218) or other Applicable Law before approving any new maximum service rate or any maximum service rate increase. City shall not be in breach of this Agreement if its residents lawfully delay or prevent City from raising or imposing the rates. In such event, City and Contractor shall meet in good faith to consider alternatives and options, which may include permitting Contractor to terminate the Agreement without cause. All costs incurred in providing notices required under California Constitution Article XIII D or other applicable law in connection with a rate adjustment shall be paid by Contractor. Section 6.03.1 CPI Adjustment Calculation. For Rate Year 2025, beginning on July 1, 2024, and for subsequent years thereafter, the rates shall be adjusted based on one hundred percent (100%) of the 12-month average change in the CPI for the 12- month period published immediately prior to the rate application. Therefore, the first rate adjustment effective July 1, 2024, will be based on the percentage change between the 12-month average of the CPI from February January 1, 2022 through January December 31, 2023 2022, and the 12-month average of the CPI from February January 1, 2023 through January December 31, 2024 2023. The index to be used shall be the [insert index]. Section 6.06.1 Contractor’s Burden. In the event of such an application for an extraordinary rate increase, it is understood that the Contractor shall have the burden of demonstrating to the reasonable satisfaction of the City the basis for the extraordinary increase cost. Contractor shall bear the burden of justifying its request and shall be solely responsible for the cost of preparing and submitting sufficient documentation in support of its request. City in its sole reasonable discretion may request Contractor to provide any additional information it deems necessary to fully evaluate the request, and Contractor shall be solely responsible for the cost to of providing such additional information. Contractor shall allow City to review a report of its annual revenues and expenses for the services provided in the City prepared by a Certified Public Accountant or a licensed public accountant, which shall have been prepared in compliance with Rule 58 of the “Rules and Regulations of the State Board of Accountancy,” as established by the California Code of Regulations, Title 16, Chapter I (“Financial Statements”). Such Certified Public Accountant or licensed public accountant shall be entirely independent of the Contractor and shall have no financial interest whatsoever in the business of the Contractor. City shall have the right to review this information in connection with the City’s review of Contractor’s extraordinary rate adjustment request. With respect to any Financial Statements or any other non- public information (“Confidential Information”), City agrees that: (a) it will hold in confidence all Confidential Information; (b) it will restrict the disclosure of Confidential Information within its own organization and to its agents or representatives who need to know the Confidential Information for the purposes of the request; (c) it will not disclose Confidential Information to any third party, excepting those subject to subsection (b), without the prior written consent of the Disclosing Parties; (d) it will not possess, copy and/or reproduce any written or electronically stored Confidential Information without the prior written approval of the Contractor; and (e) it will not use Confidential Information except as required for consideration of the request. City may consider increases or decreases in Contractor’s total revenues and total cost of services when reviewing an extraordinary rate adjustment request. The City will inform the Contractor upon receiving a California Public Records Act request or a subpoena for the Confidential Information by written notice delivered to the Contractor (“Notice”). The Contractor will have five (5) days from the date of the Notice to inform the City in writing of its intent to assert its confidentiality rights under this Agreement. The Contractor will have fifteen (15) days from the date of the Notice to seek judicial assistance to prevent the disclosure of the Confidential Information. If the Contractor fails to act within the five (5) or fifteen (15) day windows described above, the City may disclose the requested Confidential Information to the requestor or subpoenaing party. In the event Contractor seeks a court order to stay or enjoining the disclosure of the Records, Contractor agrees to indemnify and hold harmless the City, its Council, elected and appointed board or commission members, officers, employees, volunteers and agents (collectively, "Indemnitees") from and against any and all loss, liability, penalty, forfeiture, claim, demand, action, proceeding or suit in law or equity of any and every kind and description, whether judicial, quasi-judicial or administrative in nature, arising or resulting from or in any way connected with the subject CPRA or FOIA request for the Records. For the purposes of this Section 6.06.1, "Records" shall mean records created or maintained by Contractor in accordance with this Agreement, including those records that may include Financial Statements or Confidential Information of Contractor. This Indemnity shall survive the expiration or termination of this Agreement. Section 8.08 Contractor’s Diversion Programs. Contractor shall implement the Diversion programs required under this Agreement to ensure that City and Contractor comply with all Diversion requirements under Applicable and the City meets or exceeds all minimum Diversion requirements under Applicable Law. Contractor shall furthermore, at its sole cost and expense, (1) assist the City to respond to inquiries from, or prepare for and attend any hearing before, CalRecycle or any other regulatory agency relating to the City’s compliance with Applicable Law; prepare for and participate in CalRecycle’ s review of the City's SRRE.; apply for any extension available under Applicable Law; develop and implement a public awareness and education program consistent with the City's SRRE and Household Hazardous Waste Element and any related requirements of Applicable Law; (2) Provide the City with Recycling, source reduction, and other technical assistance as may be needed to comply with Applicable Law; and (3) advise the City of additional programs or measures Contractor can, if authorized by the City, implement to increase compliance with the Diversion requirements of Applicable Law.; and (4) promptly pay any and all fees, penalties, or other costs imposed on the City by CalRecycle relating to its Diversion requirements, and indemnify and hold harmless the City from and against any fines, penalties, or other liabilities, levied against the City for violation of such Diversion requirements. Section 10.10.1 Conditions of Service. Contractor must provide Large Item SFD Bulky Waste Collection Service, including the collection of E-Waste and U-Waste, to all SFD Service Units in the Service Area whose Bulky Waste, E-Waste, and U-Waste have been placed within three (3) feet of the curb, swale, paved surface of the public roadway, closest accessible roadway, or other such location agreed to by Contractor and Service Recipient, that will provide safe and efficient accessibility to Contractor's Collection crew and vehicle. Up to five (5) times per Calendar Year each Service Recipient is entitled to receive large item disposal amounting to a combined annual maximum of the equivalent of (a) five (5) large items, or (b) ten (10) 32-gallon bags at no additional cost and expense. For subsequent collection in any Calendar Year, the Contractor shall receive compensation from the customer at the rate for such service as set in Exhibit 1. Section 11.10.1 Conditions of Service. Contractor must provide Large Item MFD Bulky Waste Collection Service, including the collection of E-Waste and U-Waste, to all MFD Service Units in the Service Area whose Bulky Waste, E-Waste, and U-Waste have been placed within three (3) feet of the curb, swale, paved surface of the public roadway, closest accessible roadway, or other such location agreed to by Contractor and Service Recipient, that will provide safe and efficient accessibility to Contractor's Collection crew and vehicle. Upon property manager request, up to five (5) times per Calendar Year each Service Recipient is entitled to receive large item disposal amounting to a combined annual maximum of the equivalent of (a) six (6) large items or (b) ten (10) 32-gallon bags at no additional cost and expense. For subsequent collection in any Calendar Year, the Contractor shall receive compensation from the customer at the rate for such service as set in Exhibit 1. Section 14.01.3 City Transit Shelters. Contractor shall provide Garbage collection services to public trash cans and City-owned bus stops not less than three (3) days per week. Collection service at City Transit Shelters shall include power washing public trash cans and maintaining cleanliness in and around the trash cans on an annual basis. City Transit Shelter Garbage collection service areas are specified in Exhibit 3. Section 22.02.2.5 On-hold. The quarterly report must include each Service Unit that was not billed in the previous quarter due to vacation hold, vacancy etc. Section 28.06 Proposition 218 Release. City intends to comply with all applicable laws concerning the Maximum Service Rates provided under this Agreement. Upon thorough analysis, the parties have made a good faith determination that the Maximum Service Rates for the Solid Waste Integrated Solid Waste Handling Services provided under this Agreement are not subject to California Constitution Articles XIIIC and XIIID because, among other reasons, such services are provided by a private corporation and not by City pursuant to Article 5, Contractor independently establishes the rates for services within the limits established in this Agreement, the receipt of services is voluntary and not required of any property within City, and any owner or Service Recipient of property within City has the opportunity to avoid the services available under this Agreement either through self-hauling or use of property in such a manner that Solid Waste is not generated. Accordingly, in the event that a third party challenges the Maximum Service Rates as being in violation of Article XIIIC or XIIID of the California Constitution, or otherwise asserting that the Maximum Service rate are an invalid tax, assessment or fee, Contractor agrees to waiver, release and hold harmless and release the City Indemnitees from and against any and all claims Contractor may have against the City Indemnitees resulting therefrom, and to indemnify and defend City indemnitees, with legal counsel reasonably acceptable to City, in any form from any third party claim, suit, or other action, whether administrative, legal, or equitable challenging the Maximum Service Rates authorized provided for under this Agreement or as being in violation of Article XIIIC or XIIID of the California Constitution, or otherwise asserting that the Maximum Service Rate are an invalid tax, assessment or fee. in connection with the application of California Constitution Article XIIIC and Article XIIID to the imposition, payment or collection of the rates under this Agreement. This Section will survive the expiration or termination of this Agreement for Claims arising prior to the expiration or termination of this Agreement. Exhibit 4 E4.04 Kitchen Food Waste Pails Contractor is responsible for the purchase and distribution of fully assembled and functional Kitchen Food Waste Pails to all SFD and MFD Service Dwelling Units in the Service Area, including to new Service Dwelling Units that are added to Contractor’s Service Area during the term of this Agreement. The initial distribution of Kitchen Food Waste Pails must be completed no later than August 1, 2023 along with educational outreach materials as approved by City and will be provided at no additional charge (one (1) pail per Dwelling Unit). The distribution to new Service Dwelling Units must be completed within three (3) Work Days of receipt of notification from City or the Service Dwelling Unit. 24. Draft Street Sweeping Services Contract Revisions The Draft Agreement is hereby revised as follows, where deletions to the RFP text are noted with strikeout and additions are noted in bold red text: Section 10.1 Residential Streets. Contractor shall provide street sweeping service for each curb mile of residential streets in the City once every other week on a weekly scheduled route basis. However, in those instances where the scheduled street sweeping service day falls on a Holiday, Contractor may adjust the route schedule as necessary, consistent with other Integrated Solid Waste Handling Services. 25. Default of Agreement Question: Section 29.02. Will the City please clarify that, in order to be deemed a habitual violator, Contractor must have defaulted on three different covenants or conditions of the agreement, rather than three or more occurrences of the same violation? The latter interpretation would be unduly burdensome and appears to be outside of the spirit of the provision. Answer: No. A chronic failure to perform any covenant or condition, even if it is repeatedly the same covenant or condition, will remain grounds to deem the Contractor a habitual violator as provided in Section 29.02. 26. Acknowledgement of Addendum No. 2 Each proposer shall acknowledge receipt of this addendum in their submitted proposal. Failure to provide such acknowledgement shall render the proposal as non-responsive and subject to rejection. If you have already submitted a response, this addendum will invalidate your response and you must submit a new response before the due date specified. Except for the changes noted above, all other requirements and provisions of the originally issued Request for Proposal shall remain in effect. _____________________________ Michael Chung, PE Director of Public Works Issued January 13, 2023 I ACKNOWLEDGE RECEIPT OF ADDENDUM NO. 2 _____________________________ _____________________________ Bidder’s Signature Company Attachments: 1 Updated Form H 2 Updated Form K 3 Updated Current Service Recipient Data as of November 2022 4 Street Sweeping Parking Lots List Attachment 1 Attachment 1 Updated Form H Pass/Fail Requirements Addendum No. 2 Attachment 1 - Updated Form H Pass/Fail Requirements Page 1 of 2 Form H PASS/FAIL REQUIREMENTS PROPOSER NAME: (name of the entity that will sign the Integrated Solid Waste Handling Services Agreement in the event one is awarded) Key Contact Information Name: Title: Address: Telephone Number: Email: The Undersigned hereby certifies as follows (initial next to each statement): ______ The Proposer has attended the MANDATORY pre-proposal video conference held on December 5, 2022 at 2:00 p.m. PT. ______ The Proposer has provided all required items in Section 1 of their Proposal, including Cover Letter, Executive Summary, Proposal Bond, Performance Bond Commitment Letter, and Signed Copies of Addenda. ______ The Proposer certifies that Proposer has agreed to meet the specifications and instructions for the services to be done as set forth in Sections A - F of this RFP. ______ The Proposer certifies that Proposer has agreed to meet the specifications and requirements as set forth in the Draft Integrated Solid Waste Handling Agreement (Attachment 2). ______ The Proposer certifies that Proposer has made an examination of the services as applicable to the proposal, and fully understands the character of the work to be done. ______ The Proposer warrants that the requirements of the Draft Integrated Solid Waste Handling Agreement as described in this RFP, its enclosures, and all addenda have been thoroughly reviewed and the Proposer has conducted all due diligence necessary to confirm material facts upon which the proposal is based. ______ The Proposer certifies that all proposed transfer and processing facilities are fully permitted and capable of handling the City of Rosemead’s Solid Waste during the term of the Integrated Solid Waste Handling Services Agreement . Processing facilities must have appropriate permits from all applicable regulatory entities (including but not limited to CalRecycle and the Local Enforcement Agency) in place at all times. ______ The Proposer agrees to pay one hundred percent (100%) of the cost of each of the two (2) Performance Reviews, during the initial term of the Agreement. This amount will be escalated annually by the same percentage increase of percentage change in the “Consumer Price Index” (CPI) used to adjust customer rates. Adjusted cost shall be rounded to the nearest cent. ______ The Proposer agrees to submit a Performance Bond or Letter of Credit in the amount of one million dollars ($1,000,000) effective August 1, 2023. ______ The Proposer agrees to reimburse the City for the solicitation, evaluation and award of this procurement process, in an amount set by the City. This one-time payment is due and payable to the City within thirty (30) days after the Effective Date of the Integrated Solid Waste Handling Services Agreement . ______ The Proposer acknowledges the validity of the proposal contents, including proposed Service Rates and pricing for a period of one hundred eighty (180) days from the proposal due date. Attachment 1 Updated Form H Pass/Fail Requirements Addendum No. 2 Attachment 1 - Updated Form H Pass/Fail Requirements Page 2 of 2 Form H PASS/FAIL REQUIREMENTS Having made the necessary examination, the undersigned hereby proposes to furnish all materials, vehicles, plant, equipment and facilities, and to perform all labor and services which may be required to do said work within the time fixed and upon the terms and conditions provided in the Integrated Solid Waste Handling Services Agreement (Attachment 2), at the service rates set forth on Form K (Attachment 1): PROPOSER: __________________________________ President/Partner/Owner/Managing Member __________________________________ Secretary __________________________________ Firm Name __________________________________ Individual: Partnership: Joint Venture: LLC: Corporation: , A Corporation (State of Incorporation) Signature: ______________________________________ Date: _________________ Signature Instructions: If business is a CORPORATION, name of the corporation should be listed in full and both President and Secretary must sign the form, OR if one signature is permitted by corporation by-laws, a copy of the by-laws shall be furnished to the City as part of the proposal. If business is a PARTNERSHIP, the full name of each partner should be listed followed by d/b/a (doing business as) and firm or trade name; any one partner may sign the form. If the business is INDIVIDUAL PROPRIETORSHIP, the name of the owner should appear followed by d/b/a and name of the company. If the business is a LIMITED LIABILITY COMPANY, the Managing Member must sign the form. If business is a JOINT VENTURE, the full name of each joint venturer should be listed in full and each joint venturer must sign the form, OR if one signature is permitted by the joint venture agreement or by-laws, a copy of the agreement or by-laws shall be furnished to the City as part of the proposal. Attachment 2 Proposer's Name: Service Descriptions Billing Frequency Proposed Bundled Rate Standard Single -Family Automated Cart Service (96-Gallon Trash, 96-Gallon Recycling, 96-Gallon Organic per month $0.00 64-Gallon Single-Family Automated Cart Service(64-Gallon Trash, 96-Gallon Recycling, 96-Gallon Organic per month $0.00 32-Gallon Single-Family Automated Cart Service (32-Gallon Trash, 96-Gallon Recycling, 96-Gallon Organic per month $0.00 Additional Trash Cart each cart $0.00 Additional Recycling Cart each cart $0.00 Additional Organic Waste Cart each cart $0.00 Restart of Service (Auto-Resume Fee)per occurrence $0.00 Cart Delivery per occurrence $0.00 Cart Removal per occurrence $0.00 Cart Exchange per occurrence $0.00 Residential Cart Replacement Fee per occurrence $0.00 (Insert additional service or containers)per month $0.00 (Insert additional service or containers)per month $0.00 (Insert additional service or containers)per month $0.00 (Insert additional service or containers)per month $0.00 Form K, Tab A: Single-Family Dwelling Maximum Service Rates Rate Schedule Effective 8/1/2023 (10-Year Term) Revised Form K TAB A SFD Rates Proposer's Name: Service Descriptions Billing Frequency Proposed Bundled Rate Standard Single -Family Automated Cart Service (96-Gallon Trash, 96-Gallon Recycling, 96-Gallon Organic per month $0.00 64-Gallon Single-Family Automated Cart Service(64-Gallon Trash, 96-Gallon Recycling, 96-Gallon Organic per month $0.00 32-Gallon Single-Family Automated Cart Service (32-Gallon Trash, 96-Gallon Recycling, 96-Gallon Organic per month $0.00 Additional Trash Cart each cart $0.00 Additional Recycling Cart each cart $0.00 Additional Organic Waste Cart each cart $0.00 Restart of Service (Auto-Resume Fee)per occurrence $0.00 Cart Delivery per occurrence $0.00 Cart Removal per occurrence $0.00 Cart Exchange per occurrence $0.00 Residential Cart Replacement Fee per occurrence $0.00 (Insert additional service or containers)per month $0.00 (Insert additional service or containers)per month $0.00 (Insert additional service or containers)per month $0.00 (Insert additional service or containers)per month $0.00 Form K, Tab A: Single-Family Dwelling Maximum Service Rates Rate Schedule Effective 8/1/2023 (15-Year Term) Revised Form K TAB A SFD Rates Attachment 3 Addendum No. 2 Attachment 3 – Updated Current Service Recipient Data as of November 2022 Page 1 of 3 Attachment 3 Updated Current Service Recipient Data as of November 2022 Table 2 - Current Service Recipient Data as of November 2022 Number of Residential Cart Service Recipients Garbage 32-Gallon 64-Gallon 96-Gallon Accounts with 1 container 0 13 11,881 Accounts with 2 containers 0 0 87 Accounts with 3 containers 0 0 18 Accounts with 4 containers 0 0 8 Accounts with 5 containers 0 0 3 Accounts with 6 containers 0 0 2 Accounts with 9 containers 0 0 1 Accounts with 169 containers 0 0 1 Recyclable Materials 32-Gallon 64-Gallon 96-Gallon Accounts with 1 container 5 10,687 26 Accounts with 2 containers 1 105 0 Accounts with 3 containers 0 8 0 Accounts with 5 containers 0 2 0 Accounts with 6 containers 0 1 0 Organic / Green Waste 32-Gallon 64-Gallon 96-Gallon Accounts with 1 container 7555 23 2,907 Accounts with 2 containers 25 1 169 Accounts with 3 containers 1 0 32 Accounts with 4 containers 0 0 8 Accounts with 5 containers 1 1 5 Accounts with 6 containers 0 0 3 Accounts with 7 containers 0 0 1 Accounts with 8 containers 1 0 0 Number of Multi-Family Service Recipients Garbage Carts 1/Week 2/Week 3/Week 4/Week 5/Week 6/Week 32-Gal 0 0 0 0 0 0 64-Gal 0 0 0 0 0 0 96-Gal 1 0 0 0 0 0 Recyclable Materials Carts 1/Week 2/Week 3/Week 4/Week 5/Week 6/Week 32-Gallon 2 0 0 0 0 0 64-Gallon 0 0 0 0 0 0 96-Gallon 5 0 0 0 0 0 Addendum No. 2 Attachment 3 – Updated Current Service Recipient Data as of November 2022 Page 2 of 3 Number of Multi-Family Service Recipients (continued) Yard Waste Carts 1/Week 2/Week 3/Week 4/Week 5/Week 6/Week 64-Gallon 0 0 0 0 0 0 96-Gallon 0 0 0 0 0 0 Organic Waste Carts 1/Week 2/Week 3/Week 4/Week 5/Week 6/Week 64-Gallon 17 1 96-Gallon 0 0 Garbage Bins 1/Week 2/Week 3/Week 4/Week 5/Week 6/Week 1.5 CY 19 2 0 0 0 0 2 CY 2 0 0 0 0 0 3 CY 73 51 11 6 2 2 4 CY 2 4 2 3 0 1 6 CY 0 0 0 0 0 0 Recyclable Materials Bins 1/Week 2/Week 3/Week 4/Week 5/Week 6/Week 1 CY 1 0 0 0 0 0 1.5 CY 1 0 0 0 0 0 2 CY 0 0 0 0 0 0 3 CY 4 0 0 0 0 0 4 CY 0 0 0 0 0 0 Organic Waste Bins 1/Week 2/Week 3/Week 4/Week 5/Week 6/Week 1 CY 2 0 1.5 CY 1 0 2 CY 0 0 Number of Commercial Service Recipients Garbage Carts 1/Week 2/Week 3/Week 4/Week 5/Week 6/Week 32-Gal 1 0 0 0 0 0 64-Gal 1 0 0 0 0 0 96-Gal 27 0 0 0 0 0 Recyclable Materials Carts 1/Week 2/Week 3/Week 4/Week 5/Week 6/Week 32-Gallon 0 0 0 0 0 0 64-Gallon 1 0 0 0 0 0 96-Gallon 11 0 0 0 0 0 Yard Waste Carts 1/Week 2/Week 3/Week 4/Week 5/Week 6/Week 64-Gallon 8 0 0 0 0 0 96-Gallon 10 0 0 0 0 0 Organic Waste Carts 1/Week 2/Week 3/Week 4/Week 5/Week 6/Week 64-Gallon 79 4 0 0 0 0 96-Gallon 1 0 0 0 0 0 Addendum No. 2 Attachment 3 – Updated Current Service Recipient Data as of November 2022 Page 3 of 3 Number of Commercial Service Recipients (continued) Garbage Bins 1/Week 2/Week 3/Week 4/Week 5/Week 6/Week 1.5 CY 109 4 0 0 0 0 2 CY 13 0 0 0 0 0 3 CY 216 112 59 16 36 29 4 CY 14 9 13 3 0 8 6 CY 3 3 3 2 1 1 Recyclable Materials Bins 1/Week 2/Week 3/Week 4/Week 5/Week 6/Week 1 CY 1 0 0 0 0 0 1.5 CY 2 0 0 0 0 0 2 CY 1 0 0 0 0 0 3 CY 28 13 13 3 2 0 4 CY 0 0 0 0 1 0 Organic Waste Bins 1/Week 2/Week 3/Week 4/Week 5/Week 6/Week 1 CY 6 1 0 0 0 0 1.5 CY 6 3 0 0 0 0 2 CY 14 26 0 0 0 0 Number of City Designated Facilities Garbage 1/Week 2/Week 3/Week 4/Week 5/Week 6/Week 3 CY 23 0 0 0 0 0 Recyclable Materials 1/Week 2/Week 3/Week 4/Week 5/Week 6/Week 3 CY 2 0 0 0 0 0 Organic Waste 1/Week 2/Week 3/Week 4/Week 5/Week 6/Week 64-Gallon 3 0 0 0 0 0 Attachment 4 Attachment 4 Street Sweeping Parking Lots List Street Sweeping - Parking Lot List Facilities Address No. of Lots Hours City Hall/Rosemead Community Center (Shared Lot) 8838 E Valley Boulevard 1 2:00-6:00 AM Garvey Community Center 9108 Garvey Avenue 1 2:00-6:00 AM Garvey Park 7933 Emerson Place 1 2:00-6:00 AM Rosemead Park 4343 Encinita Avenue 2 2:00-6:00 AM Zapopan Park 3018 Charlotte Avenue 2 2:00-6:00 AM