request for proposal - mercergov.org 2018 rfp solid waste collection.pdf · proposal, and includes...

City of Mercer Island Request for Proposal

GARBAGE, RECYCLABLES, & COMPOSTABLES COLLECTION

July 2018

City of Mercer Island - Request for Proposals

Garbage, Recycling, and Compostables Collection

and Disposal/Marketing Services

Table of Contents

SECTION 1: INFORMATION FOR PROPOSERS ......................................................................................................... 1

1.1 INTRODUCTION ................................................................................................................................................... 1 1.2 EXISTING COLLECTION SYSTEM ........................................................................................................................... 2 1.3 GENERAL TERMS ................................................................................................................................................. 3

1.3.1 General Scope of the New Contract; Base Proposal .................................................................................... 3 1.3.2. Alternatives ................................................................................................................................................ 4

SECTION 2: INSTRUCTIONS TO PROPOSERS ........................................................................................................... 6

2.1 DEFINED TERMS .................................................................................................................................................. 6 2.2 CITY CONTACT AND COPIES OF PROPOSAL DOCUMENTS .................................................................................... 7 2.3 EXAMINATION OF PROPOSAL DOCUMENTS........................................................................................................ 7 2.4 INTERPRETATIONS, SCHEDULE AND ADDENDA ................................................................................................... 8 2.5 PROPOSAL SECURITY BOND .............................................................................................................................. 10 2.6 CITY INVESTIGATIONS AND PROCESS DECISIONS .............................................................................................. 10 2.7 PROPOSALS ....................................................................................................................................................... 11 2.8 PREPARATION OF PROPOSAL FORMS ................................................................................................................ 11 2.9 SUBMISSION OF PROPOSALS ............................................................................................................................. 12 2.10 MODIFICATION OR WITHDRAWAL OF PROPOSALS ......................................................................................... 12

2.10.1. Process ................................................................................................................................................... 12 2.11 PROPOSAL EVALUATION ................................................................................................................................. 13

2.11.1 Evaluation Criteria ................................................................................................................................... 13 2.11.2 Process .................................................................................................................................................... 14

2.12 SERVICES START DATE ..................................................................................................................................... 14 2.13 PUBLIC DOCUMENTS AND DISCLOSURE .......................................................................................................... 14 2.14 DISCLAIMER OF COSTS .................................................................................................................................... 15 2.15 INSTRUCTIONS FOR SUBMITTING A RESPONSIVE PROPOSAL.......................................................................... 15

2.15.1 Obtain Proposal Documents .................................................................................................................... 15 2.15.2 Conduct Investigation Deemed Necessary .............................................................................................. 15 2.15.3 Submit Responsive Proposal .................................................................................................................... 15

2.16 PROCESS INTEGRITY REQUIREMENTS ............................................................................................................. 16

SECTION 3: PROPOSAL INSTRUCTIONS AND FORMS ............................................................................................ 16

3.1 PROPOSAL PREPARATION GUIDELINES AND FORMAT ..................................................................................... 16 3.1.1. Executive Summary .................................................................................................................................. 17 3.1.2. Management and Qualifications.............................................................................................................. 17 3.1.3 Collection and Management Operations .................................................................................................. 19 3.1.4 Implementation and Public Information ................................................................................................... 22 3.1.5 Base Contract Modifications ..................................................................................................................... 22

3.2 PROPOSAL FORMS ............................................................................................................................................ 23

APPENDIX A: BASE DRAFT CONTRACT

APPENDIX B: CONTRACTOR-REPORTED DATA

APPENDIX C: FORM 2

APPENDIX D: INDUSTRY REVIEW COMMENTS AND RESPONSES

City of Mercer Island Request for Proposals 1 Garbage, Recyclables and Compostable Collection

SECTION 1: INFORMATION FOR PROPOSERS 1.1 INTRODUCTION The City of Mercer Island (“City”) is requesting Proposals from qualified Proposers for solid waste collection services within the city. This Request for Proposals (“RFP”) is for the following services: residential and commercial garbage, recycling and compostables collection, and the processing and marketing of collected recycling and compostables (“Services”). The initial contract (“Contract”) term shall be for ten years, from October 1, 2019 through September 30, 2029; provided that the City shall have a unilateral option for up to two additional extensions of up to one year each. The City is seeking a continuation of the existing solid waste collection services system with service improvements and revisions as described in the attached base contract (“Base Contract”). The City will award one comprehensive Contract for the entire city. The City also seeks specified collection system and Contract alternatives, as described in RFP Section 1.3.2. The City reserves the right to choose some, all or none of the alternates proposed. Proposers shall complete a Base Proposal, based on the Services described in the attached Base Contract (in Section 4); with the costs of alternatives separately identified on the specified rate proposal forms. Preliminarily, for the purposes of consistency and clarity the defined terms of the Base Contract retain those defined in this RFP. Defined terms are generally capitalized and are applicable to the singular and plural, or masculine or feminine. This RFP is organized into four sections: Section 1: Information for Proposers provides background information regarding the City’s solid waste handling system (the “System”) and generally describes the services to be performed by the Contractor according to the terms of the System. Section 2: Instructions for Proposers provides instructions for submitting a responsive Proposal, and includes the procedures the City will follow in choosing the highest rated proposed contractor or “Selected Proposer”. Section 3: Proposal Forms includes the questions that must be answered and the forms that must be completed for a Proposal to be considered responsive to the RFP. Section 4: Appendices include: (A) the Base Contract for the System and Service Area map that will be entered into by the City and the Contractor, potentially subject to revisions during finalization as described in this RFP. The Base Contract reflects the base proposal and will be revised to incorporate any alternatives, proposed contract modification or other changes selected by the City; (B) 2017 and 2018 year-to-date collection data from the City’s current solid


waste collection service contractor; (C) RFP Form 2; and (D) Industry Review comments and responses. 1.2 EXISTING COLLECTION SYSTEM This section generally describes the existing solid waste collection system or “System”. Carefully review the Base Contract (attached as Appendix A this RFP) to determine the scope of operations envisioned under the new Contract. Rabanco, Ltd. dba Republic Services of Bellevue (“Republic”) is the City’s current contractor. Services include residential, commercial detachable container and drop-box line of business. A total of approximately 6,700 single-family customers and 180 commercial and multifamily customers are provided service. Garbage collection is not mandatory within the city. The contractor provides all collection, customer service, and customer billing functions. Additional information on the City’s solid waste collection program is available on the contractor’s website at: https://www.republicservices.com/locations/washington/mercer-island Appendix B includes full-year 2017 collection data provided by the contractor, including customer counts by service level and tonnages by material stream and customer sector. Single-Family Collection Single-family residences are provided weekly collection of garbage, every-other-week recycling, and every-other-week compostables collection. Both recyclables and compostables collection are provided at no additional charge, as part of garbage collection. A significant number of customers receive drive-in service (mostly by limited access vehicle). 192 garbage customers, 186 recycling customers, and 150 compostables customers currently receive drive in service. A list of addresses is available upon request from the City. Residents currently use either contractor-provided carts or their own containers for garbage collection. The recycling system is based on the use of carts. The composting system is also based the use of carts or cans, with a current limit of 320 gallons of material allowed per collection cycle as part of the service. Extras are charged for compostables set-outs exceeding 320 gallons. The new base contract will shift service to weekly year-around compostables service. The base contract envisions the continuation of the existing single-stream recycling system, but proponents are encouraged to propose alternative containerization that would reduce contamination and increase the marketability of recyclables. Multifamily Collection Multifamily residences are provided with a full range of container options for garbage service as well as a recycling program that accepts the same materials as are handled by the single-family


recycling program. Multifamily commingled recycling collection is provided through carts and/or detachable containers. The multifamily recycling program is provided for all customers with the costs added to garbage collection fees. Compostables collection service is available to multifamily complexes on a subscription basis. Commercial Collection Commercial garbage collection is provided through the use of contractor-owned carts, detachable containers and drop-boxes, as well as possibly some customer-leased containers. A range of sizes and collection frequencies is available to customers. Embedded commercial recycling is not part of the current contract, but may be under the new contract if the City accepts that RFP alternative. Containers The current contractors provide service through the use of customer garbage cans and/or their own carts, detachable containers and drop-boxes. Out of the approximately 6,700 single-family residential customers, approximately 4,900 have been provided garbage carts by Republic. The City’s current contract does NOT include provisions for the City to gain ownership of all containers at the end of the contract. The base contract specifies new carts and allows used carts as an alternative. Detachable containers and drop-boxes may be new or used. Disposal All collected garbage is delivered to the King County disposal system, pursuant to the City’s current Solid Waste Interlocal Agreement with the County. Administration The City manages solid waste functions through its Public Works Department. Staff administers collection contracts, interfaces with state, regional and local agencies, develops and administers policy on solid waste as well as a range of conservation and sustainability issues, develops strategic partnerships and programs, and coordinates related outreach, marketing and education within the community. Proposal Form 2 provides a listing of the base service levels and alternatives for the new Contract and customer counts (where available) for services provided under the current solid waste collection system. 1.3 GENERAL TERMS 1.3.1 General Scope of the New Contract; Base Proposal


The City is requesting Proposals from qualified Proposers for solid waste collection services (“Services”) within the Service Area. These Services include: garbage, recyclables and compostables collection for all sectors (commercial recycling is a RFP alternative); the disposal of all garbage through the King County Disposal System; and the processing and marketing of collected recycling and compostables. The Contractor selected as a result of this RFP process shall be responsible for all aspects of the contracted-for Services, including but not limited to providing equipment, labor, supervision and supplies necessary to perform the Services. The Contractor shall be responsible for providing carts, detachable containers and drop-boxes necessary for all collection services to city customers. In addition, the selected Contractor shall produce and distribute public information about recycling, collection schedule changes (such as holiday hours) and the promotion of new collection services. Although the Contractor will have primary responsibility for all customer materials (subject to City review), the City may choose to develop some materials for the Contractor to print and distribute to customers. The Contractor shall be responsible for providing all customer service functions relating to service delivery including informing customers of potential service levels and charges, receiving and resolving customer complaints, dispatching Drop-box Container pick-ups and special collections, and preparing and sending out bills to all residential and commercial customers. The City intends to procure, at a minimum, those Services required as part of the Base Proposal for the collection system and other services as described in the Base Contract. Proposers responding to this RFP shall provide Proposals that meet the requirements of this RFP, including the Base Proposal requirements as such are set forth in the Base Contract, attached to this RFP as Appendix A. The description set forth in this RFP Section 1.3.1 is a general description and summary of the City’s requested Services and shall not be the basis for any dispute over the City’s requirements for either its (1) Base Proposal or (2) selection of a Contractor. The specific Base Contract provisions for the Base Proposal are not repeated in this RFP; Proposers must carefully review the Base Contract for specific requirements. 1.3.2. Alternatives Proposers shall also provide pricing for the following alternatives:

1. Weekly Single-family Recycling Collection: The Base Contract includes every-other-weekly single-family recycling collection. Under this alternative, recycling collection would be shifted to weekly.

2. Mandatory Collection: The Base Contract anticipates a continuation of non-mandatory collection for all customer sectors. This alternative would shift all customer sectors to mandatory service.


3. Spring Clean-up Scenario A: This alternative provides for an on-call continuous program to allow each single-family Customer to place up to one cubic yard of Garbage once each year at the curb for collection on the Customer’s regular collection day, provided that any individual item is no larger than three feet by three feet and weights no more than sixty-five pounds, plus two non-appliance bulky items such as couches or large chairs.

4. Spring Clean-up Scenario B: This alternative provides for an annual single-event-based,

program to allow each single-family Customer to place up to one cubic yard of Garbage at the curb for collection on a specified day, provided that any individual item is no larger than three feet by three feet and weights no more than sixty-five pounds, plus two non-appliance bulky items such as couches or large chairs.

5. Spring Clean-up Scenario C: This alternative provides for an annual single drop-off,

program to allow City residential Customers to bring up to one full pick-up load (or equivalent trailer) of Garbage and or defined recyclables to a central site within the City. The contractor shall provide all staffing, containers, transport, disposal, and recycling.

6. Relaxed Collection Fleet Standard: The Base Contract includes requirements for new

collection vehicles at the start of the contract term. This alternative provides for a relaxed contract standard that vehicles shall be no greater than 10 years old throughout the life of the contract.

7. Relaxed Cart Standard: The Base Contract includes requirements for new carts at the

start of the contract term. This alternative provides for a relaxed contract standard that used or existing carts may be used as long as they otherwise meet container condition standards in the contract.

8. Commercial Recycling: The Base Contract does not include embedded commercial

recycling. This alternative would include embedded commercial recycling as described in equivalent to the contract services provided for multifamily recycling.

9. Alternative Service Fee Escalation Component #1: The draft contract includes a

Consumer Price Index escalator. Under this alternative, the BLS CPI for Water, Sewer and Trash would be substituted as the index used to calculate annual service fee escalations. The floor and ceiling limits contained in the draft contract would be retained with the alternative escalator.

10. Alternative Service Fee Escalation Component #2: The draft contract includes a

Consumer Price Index escalator. Under this alternative, instead of an CPI index, a flat 3.5% increase would be used to calculate annual service fee escalations.

Directions for presenting rates for these alternatives are provided in the Form 2 instructions in Section 3 of this RFP.


SECTION 2: INSTRUCTIONS TO PROPOSERS 2.1 DEFINED TERMS Terms used in these Proposal Documents that are defined in the RFP and/or Base Contract have the meanings assigned to them therein. · “Base Contract” means the Comprehensive Garbage, Recyclables, and Compostables

Collection Contract, to be the basis for the contract entered into by the City and the Selected Proposer(s) after completion of the RFP process and is to be the basis for all Proposer rate proposals. A copy of the Base Contract is attached to this RFP in Appendix A.

· “Base Proposal” means the proposal submitted by a Proposer based on the Base Contract and that meets the requirements of the RFP.

· “City” means the City of Mercer Island, a municipal corporation of the State of Washington. · “Contract” means the contract executed by the City and the Selected Proposer for the

Services. · “Contractor” means the Selected Proposer that has entered into the Contract with the City

related to the Services.

· “Day” or “Days” means calendar days unless otherwise specified. · “Proposer” means a vendor that submits a Proposal to the City in response to this RFP.

· “Proposal” means a formal response to the RFP submitted by a Proposer to the City. A

Proposal is considered a “Responsive Proposal” if it includes all necessary documents, information, security, rates, proposed modifications to the Base Contract in compliance with the RFP.

· “Proposal Documents” include the Advertisement for Proposals and the Request for Proposals, including the Information for Proposers, the Instructions to Proposers, the Proposal Forms and the Base Contract, together with any attached or referenced appendices, exhibits or addenda.

· “RFP” means these procurement documents.

· “Selected Proposer” means the Contractor to whom the City makes an award as provided in

the Award of Contract section of these Instructions to Proposers.


· “Services” means all collection and processing services and associated functions addressed in the Base Contract.

2.2 CITY CONTACT AND COPIES OF PROPOSAL DOCUMENTS Complete sets of the Proposal Documents shall be used in preparing Proposals, and may be obtained by written request from:

Jason Kintner, Public Works Director City of Mercer Island 9611 SE 36th Street Mercer Island, WA 98040 Office (206) 275-7608 [email protected]

In making copies of the Proposal Documents available, the City does so only for the purpose of obtaining Proposals on the Services, and does not confer a license or grant for any other use of these documents. 2.3 EXAMINATION OF PROPOSAL DOCUMENTS It is the responsibility of each Proposer to do the following before submitting a Proposal: · Carefully review the Proposal Documents during the pre-release industry review period and

inform the City in writing of any questions, comments or objections to any document or portion of the Proposal Documents, including but not limited to the Contract requirements. Vendors shall include in objections any terms of the Base Contract that the Vendor is unable to meet and/or terms that the Proposer believes are preferential to a particular party.

· Notify the City in writing of the Proposer’s interest in this RFP and provide the name, e-mail

address and phone number of the person to whom RFP addenda and related information should be directed. An e-mail to the City’s contact listed in Section 2.2 shall be considered written notice for purposes of this Section 2.3. The City shall not provide addenda or other information to any Proposer that has not provided written notice as required pursuant to this Section 2.3.

· Carefully examine all of the Proposal Documents and any related attachments.

· Become familiar with local conditions that may affect costs, implementation, progress,

performance or furnishing of the services or equipment required under the Base Contract. · Consider federal, state and local laws, statutes, ordinances, regulations and other applicable

laws, executive orders and/or guidelines (“Laws”) that may affect costs, implementation,


progress, performance or furnishing of the services or equipment required under the Base Contract, including, but not limited to, applicable regulations concerning: industry wage rates; nondiscrimination in the employment of labor; minority- and women-owned business enterprise requirements; protection of public and employee safety and health; environmental protection; protection of natural resources; fire protection; emergency preparedness; solid waste handling facility standards and permits; and other permits, taxes and fees.

· Submit any questions concerning the Proposal Documents in writing to the City in a timely

fashion in order that the questions may be answered in an addendum to be issued by the City.

· Notify the City in writing of any conflicts, errors, omissions or discrepancies in the Proposal

Documents. · Obtain all required signatures on the Proposal Forms.

Before submitting a Proposal, each Proposer shall, at the Proposer’s own expense, make or obtain any additional examinations, investigation, research and studies, and obtain any additional information and data that may affect costs, implementation, progress, performance or furnishing of the services or equipment required under the Base Contract, and that the Proposer deems necessary to determine its Proposal. Proposers are expected to be knowledgeable about the Service Area, to understand the City’s terrain, streets and alleys, and to be knowledgeable concerning the locations for garbage cans, carts, detachable containers and other receptacles used for garbage, recycling and compostables collection. Proposers are also expected to confirm and assure to the City’s satisfaction that their equipment and personnel can make the collections and provide the Services called for under the Base Contract. Finally, Proposers are expected to be knowledgeable about customer service, service standards, complaint resolution, quality management, applicable Mercer Island Municipal codes, and other matters necessary to ensure and provide high quality customer service throughout the term of the Contract. 2.4 INTERPRETATIONS, SCHEDULE AND ADDENDA All questions concerning the meaning or intent of the Proposal Documents and notifications concerning any conflicts, errors, omissions or discrepancies in the Proposal Documents are to be directed, in writing (e-mail preferred), to the contact person specified in Section 2.2. Questions shall be received by 3:00 PM on August 10, 2018, in order to be considered. Questions unresolved through the industry review process regarding interpretations of Base Contract language or provided service/tonnage data shall be asked at this point in the process.


The City may, at its option, allow additional round of questions after that date. The City will answer all questions via written addenda to this RFP to all Proposers who have provided notice of its interest pursuant to Section 2.3. Proposers shall note receipt of each addenda on the completed Form 5 (Certification) submitted with a Proposal. The City reserves the right to modify the proposed Base Contract or any of the other Proposal Documents prior to the receipt of Proposals with notice to parties that submitted a written notice and request for Proposal Documents pursuant to Section 2.3. The Selected Proposer(s) shall be expected to execute the proposed Base Contract as included in this RFP, with only such amendments provided by the City via RFP addendum or as necessary to finalize the contract. The City has set the following schedule for receipt and review of the Proposals. The City reserves the right to modify this schedule if deemed necessary.

PROCESS SCHEDULE (All times Pacific Standard Time)

Event Time Frame Scope contract, internal review of drafts and RFP May-June, 2018 Release Industry Review draft of document set June 13, 2018 Industry Review comments due June 29, 2018 Release Final RFP to Known Interested Parties July 19, 2018 Deadline for Proposer Questions August 10, 2018 Proposals Due 4:00 PM PST September 25, 2018 Proposal Evaluation, Interviews, Clarifications September/October, 2018 Selection, Finalization of Contract Late October 2018 Recommendation to City Council Early November 2018 City Executes Contract November 2018 Contractor Delivers Transition/Implementation Plan January 2019 Container Delivery or Relabeling September 2019 Start of Collection Services October 1, 2019 The submission of a Proposal shall constitute an incontrovertible representation by the Proposer that the Proposer has complied with every requirement of these Instructions to Proposers, that without exception the Proposal is premised on Proposer being able and willing to perform and furnish the services, labor and equipment required by the Proposal Documents by such means, methods, techniques, sequences or procedures as are required by the Proposal Documents, and that the Proposal Documents are sufficient in scope and detail to indicate and convey understanding of all terms and conditions for performance and furnishing of the services and equipment required under the Base Contract.


2.5 PROPOSAL SECURITY BOND Each Proposal shall be accompanied by a Proposal Security Bond (“PSB”) made payable to the City of Mercer Island in the amount of Twenty-five Thousand Dollars ($25,000) and in the form of the Proposal bond as provided in the Proposal Forms. The PSB from the Selected Proposer shall be retained by the City until that Proposer has executed the Contract and furnished insurance and a performance and payment bond as required pursuant to the Contract, whereupon the PSB shall be released. If the Selected Proposer fails to execute and deliver the Contract, as negotiated, and fails to deliver required Contract documents within one week after the Contract is finalized and ready for execution, the City may withdraw its offer to contract with the Selected Proposer, and the PSB of that Proposer shall be forfeited, with no exceptions. The PSB shall be retained as liquidated damages by the City, and by submittal of a Proposal, the Proposer agrees that this sum is a fair minimum estimate of the amount of damages that the City will sustain in the event that the Selected Proposer fails to execute the Contract or furnish proof of insurance acceptable to the City. The City does not waive its rights to recover additional damages it incurs above the PSB amount. The PSB of other Proposers whom the City believes to have a reasonable chance of receiving the Contract award may be retained by the City until after (1) the Contract execution, or (2) 180 days after the Proposal opening, whichever is earlier, whereupon the PSB furnished by such Proposers shall be released. PSB with Proposals that are not found to be responsive shall be returned no later than 60 days after the Proposal opening.

2.6 CITY INVESTIGATIONS AND PROCESS DECISIONS As part of the RFP evaluation process, the City reserves the right to do any or a combination of the following: · Contact staff from other jurisdictions regarding their experiences with Proposer;

· Visit a Proposer’s facilities, including proposed processing facilities, and view proposed

vehicles and equipment;

· Meet the Proposer’s personnel, including interviewing the Proposer’s existing route, operations, management, financial and customer services personnel during the performance of their regular duties;

· Retain independent consultants for assistance in evaluating Proposals and provide proposal

materials to those consultants;

· Request clarification or additional information from a specific Proposer in order to assist in the City’s evaluation of a Proposal;


· Require changes in the Base Contract that the City deems necessary;

· Decline to award a Contract for the Services as a result of this RFP process;

· Discontinue negotiations with the Selected Proposer or any Proposer, and commence

discussions with any other responsive Proposer;

· Withdraw the RFP and reject any or all Proposals;

· Not award to any or all Proposers and issue a subsequent request for bids or request for proposals based on refinements of concepts proposed in response to this RFP or otherwise;

· Enter into extensions of the existing contracts with the City’s current solid waste collection

services providers; or

· Seek other investigations, inquiries, reviews or clarifications which would allow the City to make informed decisions.

2.7 PROPOSALS Each Proposer’s Proposal shall provide unit prices for all service levels indicated on the appropriate Proposal forms. All Proposals shall be provided in year-2019 dollars. The Proposal unit prices shall be used, in part, to determine the Selected Proposer as described in the Basis of Award section of these Instructions to Proposers. All costs, including overhead and profit, and non-itemized taxes, fees or surcharges imposed by federal, state or local laws (see Form 2 instructions for details), for which the Proposer expects to receive payment as a result of the Services shall be included in the unit prices, unless otherwise specifically directed. The data on the existing System concerning number of customers and collection tonnages should be viewed as the best available data accessible to the City and are presented solely as the basis for calculations on which the award of the Contract will be made. Actual results experienced during the operation of the System may differ. By submitting a Proposal, the Proposer is committing to commencement of collection services by October 1, 2019, and to comply with each term of the Contract and corresponding portion of its submitted Proposal. 2.8 PREPARATION OF PROPOSAL FORMS All blank spaces in the Proposal Forms shall be completed to be considered and no changes shall be made to any of the Proposal Forms. If forms submitted by a Proposer are different than the Proposal Forms, the City may deem the Proposal non-responsive.


The Proposal prices shall be inclusive of all costs of providing the services, labor and equipment required under the Contract. The City may, at its sole discretion, deem any Proposal non-responsive to the Base Proposal that contains omissions, erasures, alterations or additions of any kind, or prices uncalled for, or obviously unbalanced, or any Proposal that in any manner fails to conform to the conditions of this RFP. The Proposer shall sign its Proposal in ink in the blank space provided and all names shall be typed or printed below the signature, along with evidence that the Proposer is a duly organized and validly existing business, licensed to do business in the City and Washington State. If not licensed, then the Proposer shall provide a sworn statement that it will become licensed if selected as the Successful Proposer prior to executing the Contract. The legal name of the Proposer submitting the Proposal shall be typed or printed in the space provided at the bottom of each page of the Proposal Forms. Proposals by corporations shall be executed in the corporate name by the president or a vice-president (or other corporate officer accompanied by evidence of authority to sign). Proposals by partnerships shall be executed in the partnership name and signed by a partner, whose title shall appear under the signature. If the signature is by an agent other than an officer of a corporation or a member of a partnership, a notarized power-of-attorney or board resolution shall be on file with the City prior to the opening of Proposals or shall be submitted with the Proposal; otherwise, the Proposal may be deemed non-responsive. 2.9 SUBMISSION OF PROPOSALS Proposals must be submitted no later than the date and time indicated in Section 2.4 and addressed to the contact listed in Section 2.2 and delivered to the reception desk at the Mercer Island City Hall at 9611 SE 36th Street, Mercer Island, WA 98040. Proposals must be enclosed in a sealed package, marked with the words "PROPOSAL ENCLOSED - CITY OF MERCER ISLAND SOLID WASTE COLLECTION" and marked so as to indicate, without being opened, the name and address of the Proponent. Proposals must be accompanied by the Proposal security and all other required documents as further described in Section 2.15.3. 2.10 MODIFICATION OR WITHDRAWAL OF PROPOSALS 2.10.1. Process Prior to the time and date designated for receipt of Proposals, any Proposal submitted may be modified or withdrawn by written notice to the City. The Proposer shall provide such notice in writing to the City contact shown in Section 2.2 and shall include the signature of the Proposer. Notice of a Proposal modification or withdrawal shall only be considered by the City if the City receives it before the time and date set for receipt of Proposals. A late modification or withdrawal request shall not be recognized and the City shall consider the originally submitted Proposal.


2.11 PROPOSAL EVALUATION 2.11.1 Evaluation Criteria The City’s Proposal evaluation committee shall review proposals based on the following criteria: (1) Responsiveness/Completeness (pass/fail) Each Proposal will be reviewed based on responsiveness to the information required. All forms shall be completed, all questions answered, and all information supplied in the format requested. The City may disqualify any Proposer not meeting these initial requirements. Proposers meeting these initial criteria may be contacted by the City to provide specific clarifications. (2) Minimum General Qualifications (pass/fail) Proposers shall submit all information related to their ability to successfully perform the work described in the RFP and Base Contract, including a full and competent response to items A through E in Section 3.1 of this RFP. Proposers who do not fully respond to all questions, who do not clearly outline their proposed services, equipment and approaches, and/or who fail to clearly demonstrate their ability to perform under the Base Contract may be determined to “Fail” meeting the Minimum General Qualifications. (3) Rate Evaluation (60 points) The rate evaluation will be conducted as described under the “Process” section in Section 2.11.2. The rate portion of Proposals shall be scored according to the following formula: Subject Proposal Rate Score = (Lowest Proposal Rate Total/Subject Proposal Total) x 60 points (4) Qualitative Aspects (40 points) Proposers shall have demonstrated knowledge, skills, creativity, experience and capacity to design, deliver, manage and improve all aspects of customer service, operations, maintenance, outreach and education, marketing, procurement, financial management, contingency planning, sustainability performance and other aspects associated with the provision of services under the proposed Base Contract. Proposers will be evaluated on the basis of Proposals submitted as well as references, interviews with Proposer staff and site visits. Evaluation shall be based upon a number of factors, which include, at the City’s discretion, any number of the following: customer service,


contract implementation and compliance, proposed operations, recycling and composting processing, and overall customer education and promotion. Proposals shall be assessed a qualitative score of up to 30 points based upon any number of the factors listed above. Scores may be assessed based upon a comparison to other Proposals or on a stand-alone basis. While City staff will review and score this portion with careful consideration of the selected factors, they are not required to provide any justification (written or otherwise) for the scores assessed to this portion of the Proposal. 2.11.2 Process During the initial round of review, Proposals shall be reviewed by an evaluation team selected by the City Manager. Proposals shall be evaluated in two phases: (1) a qualitative review and scoring of Proposal elements other than price, including reference checks, interviews and site visits; and (2) scoring of the rate portion of the Proposals. The City’s evaluation committee will then combine qualitative and rate scores to determine the Selected Proposer. Contract finalization shall then proceed with the Selected Proposer, or another Proposer if Contract finalization with the Selected Proposer is not successfully concluded in a timely manner. The resulting Contract shall be submitted to the City Council for review and approval. The City Council will consider staff’s recommendation, however, the City Council has the final authority to choose a contractor and award the Contract to the party of their choice. The City reserves all of its rights, including but not limited to the right to reject any and all Proposals, to waive any and all informalities, and to disregard all non-conforming, non-responsive, irregular or conditional Proposals, and to seek proposal clarifications as needed. In addition, the City reserves the right to reject the Proposals of any and all Proposers if the City believes that it would not be in the best interest of the City to make an award, whether because the Proposal is non-responsive, because the Proposer is not found to be responsible or fails to meet any other pertinent standard or criterion established by the City of Mercer Island, or whether it is otherwise not in the best interest of the City. In addition, the City reserves the right to terminate the RFP process at any time and for any reason. 2.12 SERVICES START DATE The Contractor/Selected Proposer shall start the Services under the Contract on October 1, 2019. 2.13 PUBLIC DOCUMENTS AND DISCLOSURE Under Washington State law, including without limitation Chapter 42.56, Public Records Act, the documents and other records submitted in response to this RFP are public records upon submission to the City, subject to mandatory disclosure upon request by any person, unless the documents are exempted by a specific provision of law. If the City receives a request for


inspection or copying of such documents and other records, it will make an effort to promptly notify the Proposer of such request so that the Proposer may choose to pursue a court order prohibiting or conditioning the release of such documents. The City assumes no contractual obligation to enforce any exemption. The City intends to disclose all sealed rate portions of the Proposals after they are opened to all Proposers. Proposers are cautioned to not include any confidential or proprietary information with their Proposals which they do not want disclosed. The City shall not be liable for or responsible for the disclosure of such information. 2.14 DISCLAIMER OF COSTS The City shall not be responsible for any costs incurred by any Vendors in preparing, submitting, or presenting its response to the RFP or interview process, as applicable. The City shall not be responsible for any costs incurred by the Selected Proposer prior to the date of the execution of the Contract. 2.15 INSTRUCTIONS FOR SUBMITTING A RESPONSIVE PROPOSAL 2.15.1 Obtain Proposal Documents Send an e-mail request for (1) the Proposal Documents, and (2) confirmation of a mailing and e-mail address for the City to direct addenda and other RFP-related communications. The City contact’s e-mail address is listed in Section 2.2 of this RFP. 2.15.2 Conduct Investigation Deemed Necessary Each Proposer shall conduct any investigation of the Service Area, projected customer counts, types and quantities of customer-owned equipment, markets, processing facilities and other conditions deemed necessary by the Proposer to submit a responsive Proposal. 2.15.3 Submit Responsive Proposal Complete Proposals shall be submitted no later than the date and time indicated in Section 2.4, and shall be enclosed in a sealed package, marked with the words "PROPOSAL ENCLOSED - CITY OF MERCER ISLAND SOLID WASTE COLLECTION" and marked so as to indicate, without being opened, the name and address of the Proposer. The sealed Proposal package shall include an envelope containing the PSB and all other required Proposal documents, including completed Proposal Forms. Proposals shall be mailed or delivered to the RFP contact listed in Section 2.2. Proposers shall submit one original and four copies (5 total), printed and double-sided, of the Proposal Forms and other supporting documents. Please do not glue bind the Proposal Forms and supporting documents. The Proposal and all Proposal Forms shall be signed by an authorized person where indicated. In addition to the printed copies, Proposer shall provide an electronic copy (.PDF format) of its Proposal and all Proposal Forms (minus bound corporate publications such as annual reports) on a CD or USB flash drive.


2.16 PROCESS INTEGRITY REQUIREMENTS Each Proposer is individually and solely responsible for ensuring compliance with the following Process Integrity Requirements. This responsibility extends to Proposer’s employees, agents, consultants, lobbyists, or other parties or individuals engaged for purposes of developing or supporting Proposer’s Proposal or proposed services. Proposers shall comply as follows: · All solid waste collection-related communications with the City shall be only through the

City’s designated staff contact identified in Section 2.2. Proposers or their agents shall not contact other City staff, appointed or elected officials, consultants retained by the City or other City agents regarding current or future solid waste collection services from the time the final RFP is made available to prospective Proposers until the time a finalized Contract and/or staff recommendation of Selected Proposer is forwarded to the City Council and is made public in the City Council’s Agenda Packet.

· When seeking information from the City to prepare a response, Proposer shall place its

reliance only on information, RFP materials and Addenda provided by the City’s contact designated in Section 2.2. Any reliance on other City information and publications may result in a non-responsive Proposal due to inaccurate or incomplete information. The City shall not be liable or responsible for inaccuracies or incomplete information found outside of the RFP, and Proposal Documents, including any attachments.

· Any information and materials to be utilized by the City during the Proposal evaluation and

selection process shall be included as part of the original Proposal or submitted in response to a specific request from the City.

A Proposer shall be disqualified and shall forfeit its PSB if the City determines the Proposer has failed to comply with the specific Process Integrity Requirements, has undermined the City’s intention of conducting a fair and transparent competitive process based on the specified evaluation criteria, or has otherwise substantially diminished the City’s ability to award a Contract in a timely manner and free of contention. The City reserves the sole right to disqualify any Proposer at any point in the process prior to Contract award for failure to comply with the Process Integrity Requirements. The City also reserves the right to disqualify any Proposer, at any time, for fraud, any material misrepresentation, illegal conduct, or any act or omission that potentially or actually reflects poorly on the City. SECTION 3: PROPOSAL INSTRUCTIONS AND FORMS 3.1 PROPOSAL PREPARATION GUIDELINES AND FORMAT These instructions provide guidelines governing the formation and content of the Proposal and the approach to be used for its development and presentation. The intent of this section is to describe the Proposal format and requested information that is essential to an understanding


and evaluation of the proposed system. The inclusion of any additional pertinent data or information by the Proposer is recommended. Inclusion of general letters of support are not useful to the City when evaluating Proposer’s capabilities and abilities to perform under the Contract and are discouraged. Proposals shall be stapled or provided in a 3-ring binder, sealed, typed and prepared on both sides of 8-1/2” by 11” paper. Oversized documents may be submitted, but they must be folded to size and secured in the Proposal. All pages of the Proposals shall be numbered and sections clearly identified. The Proposal and all attachments shall be complete and free of ambiguities, alterations and erasures. The Certification of Proposal – Declaration of Understanding (Form 5) shall be executed by Proposer or Proposer’s duly authorized officer or agent. In the event of a conflict between words and numerals, words shall prevail. The City does not require financial statements to be provided as part of Proposal submittals. However, the City reserves the right to request supplemental materials from Proposers to demonstrate to the City’s satisfaction that any Proposer is fully capable to undertake this Contract and its associated Services. The Proposal shall follow the format outlined below, and shall include the required content in sequential format. 3.1.1. Executive Summary Provide a brief overview of the entire Proposal and highlight the key aspects of the Proposal (maximum 6 pages). In the executive summary or cover letter, please confirm receipt of any RFP addenda received and considered during the development of your Proposal. 3.1.2. Management and Qualifications 3.1.2.1 Proposer State the name of your entity, home office address, Washington business address, Washington agent’s name, address, e-mail address and telephone number, and the name, address, phone number, fax number, e-mail address, website address and title of the person to be contacted concerning the Proposal. If Proposer is a subsidiary, state the name of the parent company, the home office address, telephone number and website address of the parent company, and describe the parent company’s relationship to the Proposer. State whether the person signing the Proposal has the authority to sign on behalf of Proposer. State also the names of companies that will share significant and substantive responsibilities with you, as joint venture partners or in another manner, in performing under the Contract. Include documentation that Proposer is duly organized and validly existing business in good standing, and licensed to do business in the City. If Proposer is not licensed to do business in the City, then the Proposer


shall provide a sworn statement that it will become licensed if selected as the Successful Proposer prior to executing the Contract. 3.1.2.2 Resumes Supply the names and resumes of the principal officers, partners or other officials of each entity involved in performing substantive responsibilities required under the Contract, and provide the names and resumes of the individuals who will be directly responsible for implementation of the Contract. At a minimum, include the general manager, operations manager(s), financial officer, education and customer outreach manager, customer service manager(s) and other personnel with whom the City will have regular contact with during the administration of the Contract. Describe the ownership, managerial and/or fiduciary role of each of the participating companies. Include the names, entity affiliation, telephone numbers and e-mail addresses of key individuals integrally involved in the Proposal. Provide an organizational chart or other means of explaining the interrelationships between the team members. 3.1.2.3 Litigation and Violations List any entity, partner, holding company or subsidiary involved in the Proposal, or any corporate officer, that has been involved within the past five years in any litigation or arbitration including but not limited to any action or claim arising out of the procurement or performance of a municipal solid waste contract; arising out of performance of a processing or marketing contract; arising or connected with violation of state or federal anti-trust laws; arising from or connected with allegations of corrupt practices; or arising from operating permits and other operating requirements, including local, state and federal rules or regulations. In the case of national companies with multiple affiliated regional companies, the above disclosure should be limited to Pacific Northwest operations and personnel. Explain details fully with copies of any pleadings and/or settlement papers. In the event that disclosure limited by court authorized non-disclosure provisions, then general circumstances shall be described to the extent authorized and disclosure requirements stated. 3.1.2.4 Subcontractors List all items of work or elements of the Services to be performed by subcontractors, and the names, qualifications and resumes of the subcontractors. Also, list the equipment and supplies to be purchased from vendors. Provide an estimate of cost, expected time of purchase, and length of time necessary for delivery for each of the items. 3.1.2.5 Experience Describe fully the experience of your team (both individuals and the corporate, partnership or entity team) in providing the Services requested in this RFP. Describe similar projects, and include the scope of services (including a summary of which collection and/or processing services were covered by the contract), annual revenues, tonnages and number of customers.


Describe any major problems encountered in establishing service or collecting, processing, or marketing recyclables or compostables. Provide references (including contact name, title, organization, mailing address and contact information) for all similar projects described. References should have direct operational management responsibility of Proposer’s contract and full knowledge of Proposer’s detailed performance under that contract. This will generally be a city staff member, not an elected official. 3.1.3 Collection and Management Operations 3.1.3.1 Garbage, Recycling and Compostables Collection and Handling Describe fully the collection equipment and containers to be used under the Base Contract, keeping in mind the Base Contract specifications for the collection frequency, types of containers, and the City’s intention that garbage, recyclables, and compostables be collected separately. Identify the chassis and body used to collect residential, commercial, and drop-box service sectors, including vehicles used to service driveways and access areas that are not appropriate for regular collection vehicles. Also identify for each type of truck: the number of compartments, the capacity of each compartment, total weight, and volume capacity of vehicle, loading and unloading characteristics, the number necessary to perform the required Services, the average number of collections each vehicle can make in a day, and the useful expected life of each collection vehicle. Describe how each vehicle will be marked or signed so that witnesses to spills, leakage, and/or damage may quickly report such occurrence. The City is interested in and would support the use of electric vehicles for collection or collection support. If you believe some aspects of collection services may be feasibly performed by electric vehicles, please identify the specific type of proposed vehicle, how it will be used, and where it has been successfully used in similar service. Identify any subcontractor used for container inventory and delivery. Describe and provide examples of your route management system. Describe how routes are initially developed and modified over time, how your on-board computer systems manage route progress, route changes, exceptions (no set-out, blocked containers, contaminated materials, extra set-outs, etc.) and diversions from normal routes due to road maintenance, inclement weather or other unforeseen needs to deviate from the planned route. Also describe how the on-board system (if used) communicates with your call center’s account system to provide close-to-real-time updates for each customer during the collection day. Identify the destination for all collected materials. If more than one recycler or composter will be used, identify the proportion of loads destined for various destinations and the criteria for routing trucks to a particular facility. If you prefer to use different containerization or processing than the current single-stream recycling system anticipated by the Draft Contract, please address the continuation of the


single-stream recycling collection and processing approach in your main proposal body and then address your preferred alternative separately under Section E, Base Contract Modifications. Similarly, if you prefer to use a different commodity price adjustment mechanism (Draft Contract section 5.3.4), base your proposal on the base contract as provided and then address your preferred adjustment mechanism separately under Section E, Base Contract Modifications. Describe fully your proposed recycling processing facility, including location, hours of operation, processing capability per hour and per day by material type, tons of material currently processed per day by material type, additional processing capacity committed to in the future by material type, and the amount of that capacity needed to process the recyclables collected under the Base Contract. Specifically address how commingled materials are currently processed and the average rejection or contamination rate experienced by your firm or contracted processor. Describe how your Entity chooses recycling markets and ensures that collected materials are remanufactured into new products rather than high-graded and partially recycled or used as fuel. Describe fully your proposed compostables processing facility, including location, hours of operation, processing capability per hour and per day, tons of material currently processed per day, additional processing capacity committed to in the future, and the amount of that capacity needed to process the compostables collected under the Base Contract. Identify the operator (if subcontracted), location, structures, and zoning of your proposed maintenance and support facilities. Provide the number of repair bays available at the facility and maintenance staffing levels (i.e., mechanics and assistants). Provide the total number of trucks maintained at the site for all Proposer operations, as well as the number of trucks and spares dedicated to the Contract. The City actively works to protect its water resources, including surface and groundwater. It is essential that all containers do not leak and have tight fitting lids that close, and that they are always closed after servicing. What steps do you propose to ensure these requirements? Similarly, leaking compactors can pollute surface water and it is critical to the City that compactors do not leak during operation, or during or after servicing. What specific steps do you propose to prevent pollution from compactors? 3.1.3.2 Billing Support and Customer Service Support Describe in detail the manufacturer and model of equipment and software used to maintain route lists, customer service histories, and the ability to provide City-requested reports of customer-specific information and data. Discuss how your Entity has implemented services in other cities, with particular emphasis on how the transition between the previous contractor and your Entity was handled, and how your


Entity developed accurate customer service level and billing data in the event the predecessor’s records were unavailable. The City considers customer service to be a very important aspect of this solid waste collection services contract. Outline your overall approach to customer service and how the various elements of customer service (call center, web-based, and mobile app) work together to provide excellent customer service. Describe the functionality of your website including the basic structure, interface to customer service representatives and the degree to which customers can manage their accounts (e.g. change their subscribed service levels, order service, request a missed pick-up collection), and how you ensure that web and mobile app requests are accurately tracked and addressed. Describe your most recent innovations in service; for example, new technology on trucks or new methods/technologies to better communicate with customers. Discuss how staffing levels are established and modified to ensure timely customer service, and how new and existing staff is trained. Describe how customer service performance is measured, including the specific targets or performance metrics used to evaluate your Entity’s performance. If call center staff handle calls from more than one city or WUTC-certificated service area, describe the procedures and aids used by those staff to address calls from different service areas without delaying responses to customers. Discuss how long it takes your Entity to respond to service calls, how you monitor and adapt your field staffing to minimize your response time, and how the resolution of each service call is performed in a timely manner. Describe your procedures for handling “missed” collections. Does your Entity have a separate route for handling misses at the end of each day; is each route driver responsible for collecting their misses on the day or day after regular collection; or does your Entity use some other system? How has this approach worked to minimize repeat misses? How do you handle customers who repeatedly report unwarranted misses? 3.1.3.3 Transition and Implementation Plan Describe your proposed transition and implementation plans to ensure an efficient and successful implementation of service provisions as outlined in the Base Contract. Identify the major issues and describe your proposed approach. Discuss customer information, promotion and notification, customer service, customer response, procurement and delivery of vehicles, containers and other equipment, contingency plans and other considerations which will ensure a successful transition and/or implementation of the Services consistent with the start of collection services. Include a timeline which identifies major tasks and key dates in the transition and implementation plan.


3.1.4 Implementation and Public Information If you would be a new service provider for the City, describe in detail how your Entity would work with the existing contractor to ensure a smooth transfer of information and cart/container exchanges in a timely manner to prior the contract services start date. Identify the individuals involved in this effort, their qualifications and previous experience in transitioning existing collection programs. Describe whether the same person will be serving as part of the management staff throughout the Contract term as serves during the transition/ implementation period. Describe and provide examples of materials developed by Proposer’s staff and used to introduce and support single-family recycling and compostables programs. Address how materials will be distributed and how residents seeking additional information will be accommodated during program introduction. Detail how your approach will increase and maintain participation and how methods may change as participation levels increase or decrease. Describe fully how you will promote multifamily recycling and increase multifamily recycling levels. Detail the communications, outreach and assistance methods as well as technological or operational innovations you propose to increase those recycling levels. Describe fully the public information techniques you will use in responding to contamination or other customer problems at a particular site. Detail how your Entity’s approach will increase and maintain participation and how methods may change as participation levels increase or decrease. Provide examples of where your approaches have been effective, how effectiveness is measured and also provide informational materials developed and used by your staff. Explain your procedures for submitting public information material to the City for approval and any approval timeliness you will expect the City to meet. Describe and identify your Entity’s website, and how you plan to present information about the Services on the website. Describe your procedures to keep information on your website up-to-date. Identify and describe fully the qualifications of your Education and Outreach Manager including previous experience in working with recycling collection programs and government organizations. Describe whether the same person will be serving as the Education and Outreach Manager throughout the Contract term as serves during the Transition/ Implementation Period. 3.1.5 Base Contract Modifications Submissions contingent on an alternative Contract cannot be reasonably compared with competing Proposals and shall be considered non-responsive.


All Proposals shall be based on the Base Contract (Appendix A) included with the RFP, without alteration. However, Proposers may identify specific Base Contract provisions that they believe unreasonably affect costs and the City consider the proposed change. The City is specifically interested in Proponent ideas on potential revisions to the containerization and degree of commingling of Recyclables to minimize contamination and maximize the marketability of collected materials. If you wish to propose an alternative in addition to the fully-commingled single cart system contained in the base contract, please do so under this section of your proposal. For each Proposer-proposed Base Contract modification the following format shall be followed to maintain consistency between Proposals: · Clearly indicate the reason for the requested change; · Whether the proposed change is a mandatory part of your Proposal or is simply a

preference; · Propose alternative text; and · Provide the rate impact to your Proposal (or “no rate impact” if none) resulting from the

proposed change. The listed rate impact shall reflect the annual rate reduction or increase of the proposed modification and shall be identified in dollars with a “+” representing an increase in annual aggregate rates and a “-“representing a decrease in annual aggregate rates. If there is no rate savings or increase associated with the proposed modification, the Proposer shall indicate “no cost impact.” The City encourages that any and all questions specifically regarding Base Contract language interpretation or the acceptability of alternative approaches be asked during the industry review period to the extent possible period rather than waiting for the RFP question/answer process described in Section 2.3. 3.2 PROPOSAL FORMS The following forms shall be completed in full and in accordance with both the Instructions to Proposers and with the instructions that follow below, and shall be submitted collectively as the Proposal Forms. Use black or blue ink or type on all forms. Proposer’s responses to the questions in these Proposal Forms shall be used by the City to evaluate the responsiveness of Proposer and the ability of Proposer to provide the specified services and equipment in a responsible manner. The information shall be submitted as indicated on the individual forms, but if Proposer needs additional space to respond to a question or if Proposer is requested to provide information that cannot be written directly on the forms, these items must be stapled or attached to the individual forms that correspond to the pertinent information. Oversized or bulky information such as drawings or bound


documents shall be submitted under a separate cover, labeled to indicate the form number and content to which the information pertains, referenced as such on the Proposal Forms, and included as part of Proposer’s Proposal. Proposers shall number each page that contains information that cannot be written directly on a form or pages that are reproductions of a form. The page number shall be placed in the upper right-hand corner of each such page and sub-lettered to correspond with the page to which the information pertains (e.g., Form 2). Proposers may reproduce Proposal Forms on a computer and complete them using editing software, provided that each page so generated must have the header, footer and body of information in the same locations as the original form to assure uniformity of the Proposal’s submittal. Typefaces may differ to the extent that the reproduced forms remain legible, however, changes are not encouraged. Stylistic enhancements and reformatting resulting in the omission on required information may render the Proposal non-responsive, at the sole discretion of the City if the City considers the omission to materially affect the Proposal. These Proposal Forms are available electronically in Microsoft Word, PDF, and Excel format from the City contact listed in Section 2.2 of this RFP. Proposers shall provide complete and detailed responses to each question. If the Proposer fails to do so, its Proposal is likely to be deemed non-responsive and may be rejected by the City. During the execution of the Services, the City shall consider information submitted by the Selected Proposer to be binding, and any substitutions or deviations from the information provided may only be approved in writing by the City.

Form 1 – Cover Sheet and General Information 25 City of Mercer Island Request for Proposals Garbage, Recyclables and Compostable Collection

Form 1

COVER SHEET AND GENERAL INFORMATION Entity Name: ______________________________________________________________ Home Office Address: _________________________________________________________ Washington Business Address: ___________________________________________________ Website Address: ______________________________________________________________ Name, Title, Address, Telephone Number, fax Number and E-Mail Address of the person to be contacted concerning the Proposal: ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ If Applicable, Name of the Parent Company: ______________________________________________________________ Home Office Address, Telephone Number and Website Address of the Parent Company: ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ Describe the parent company's relationship with the Proposer: If applicable, does the person signing the documents have the authority to sign on behalf of the Proposer? _____Yes _____No

Form 1 – Cover Sheet and General Information 26 City of Mercer Island Request for Proposals Garbage, Recyclables and Compostable Collection

Names of Companies that will share significant and substantive responsibilities with the Proposer in performing services under the Contract: Attach to this form, and number appropriately, documentation showing that the Proposer is duly organized and validly existing as a corporation or partnership in good standing.

Form 2 – Price Proposal 27 City of Mercer Island Request for Proposals Garbage, Recyclables and Compostable Collection

Form 2

PRICE PROPOSAL Form 2 is attached as Appendix C and is also available as an MS Excel file. Complete all green-shaded blanks on the attached Form 2 rate proposal sheets including monthly collection and disposal fees for all scheduled services and miscellaneous services. Disposal fees shall be based on King County’s 2018 tipping fee. The disposal component only of customer rates will be adjusted accordingly (per Contract Section 5.3.2) in the event of a disposal fee change between the development of proposed rates and the start of contract services. The service component will not be adjusted prior to the start of contract services, so you must include any expected 2018 to 2019 inflation rate in your proposed rates. Container counts are included only for the purposes of price evaluation. Counts shaded in blue, if any, do not reflect actual usage and are instead intended to be an estimate of potential usage. Prospective Proposers are responsible for developing their own internal service level profile forecasts reflecting their own estimates on growth that may occur by the start of the Contract and thereafter. The Contractor’s fees provided on Form 2 shall include all capital, labor, disposal, and other operating costs, including administration, management, profit, contract fees and incidental taxes (e.g. sales tax on capital equipment and containers, tire and fuel taxes, B&O). State refuse collection tax, sales taxes on listed container rentals and city utility taxes shall be excluded from the Proposal rates. Contractor fees provided by the Proposer on Form 2 shall incorporate the following elements, and be based on actual cost of service unless otherwise noted:

Customer Sector Include In Rates Rate Formula Single-Family Residential Garbage and recycling collection costs,

including garbage disposal and processing costs and revenues

cost-of-service

Multifamily and Commercial Cart and Detachable Container

Garbage only, including container costs. (recycling costs are separately proposed on the Form 2)

cost-of-service

Temporary Detachable Container and Drop-box

Garbage hauling costs only for drop-boxes, with container rental and disposal charged separately. Garbage container rental, hauling and disposal costs for detachable containers.

cost-of-service

Commercial/Multifamily Drop-box Service

Hauling costs only, excluding container rental and garbage disposal.

cost-of-service


Other Services (e.g. container cleaning, compostables, etc.)

Only cost-of-service or the default rates set on Form 2.

cost-of-service

Proposer’s cost-of-service model shall be generally designed to recover the costs for each collection sector only from that sector. For some seldom-used or ancillary services, fixed rates have been entered on the Form 2 rather than requesting Proposers to propose their own rates for those services. Proposers shall use the listed rates in their revenue calculations and shall not provide different proposed rates for those services. Alternatives: At the end of Form 2, cells are provided for entering proposed rate modifications for the following alternatives. Please calculate and enter costs as described in the following instructions. Increased or reduced amounts should be expressed as modifications to the customer rates provided on Form 2. If the alternative is selected, the amount added or subtracted from the monthly base rate for each service level. Reductions in the base rate (or revenue requirement depending on the alternative) shall be expressed as a negative number. Increases in the base rate (or revenue requirement depending on the alternative) shall be expressed as a positive number.

1. Weekly Single-family Recycling Collection: The Base Contract includes every-other-weekly single-family recycling collection. Under this alternative, recycling collection would be shifted to weekly. Please provide the monthly rate increase (+) per single-family customer associated with this alternative.

2. Mandatory Collection: The Base Contract anticipates a continuation of non-mandatory collection for all customer sectors. This alternative would shift all customer sectors to mandatory service. Please provide the monthly rate increase (+) or decrease (-) per single-family customer associated with this alternative.

3. Spring Clean-up Scenario A: This alternative provides for an on-call continuous program

to allow each single-family Customer to place up to one cubic yard of Garbage once each year at the curb for collection on the Customer’s regular collection day, provided that any individual item is no larger than three feet by three feet and weights no more than sixty-five pounds, plus two non-appliance bulky items such as couches or large chairs. Please provide the monthly rate increase (+) per single-family customer associated with this alternative.


4. Spring Clean-up Scenario B: This alternative provides for an annual single-event-based, program to allow each single-family Customer to place up to one cubic yard of Garbage at the curb for collection on a specified day, provided that any individual item is no larger than three feet by three feet and weights no more than sixty-five pounds, plus two non-appliance bulky items such as couches or large chairs. Please provide the monthly rate increase (+) per single-family customer associated with this alternative.

5. Spring Clean-up Scenario C: This alternative provides for an annual single drop-off,

program to allow City residential Customers to bring up to one full pick-up load (or equivalent trailer) of Garbage and or defined recyclables to a central site within the City. The contractor shall provide all staffing, containers, transport, disposal, and recycling.

6. Relaxed Collection Vehicle Standard: The Base Contract includes requirements for new collection vehicles at the start of the contract term. This alternative provides for a relaxed contract standard that vehicles shall be no greater than 10 years old throughout the life of the contract Please provide the annual revenue requirement increase (+) or decrease (-) associated with this alternative.

7. Relaxed Container Standard: The Base Contract includes requirements for new carts at

the start of the contract term. This alternative provides for a relaxed contract standard that used or existing carts may be used as long as they otherwise meet container condition standards in the contract. Please provide the annual revenue requirement increase (+) or decrease (-) associated with this alternative.

8. Commercial Recycling: The Base Contract does not include embedded commercial

recycling, although the language for this alternative is contained in Section 4.2.5. This alternative would include embedded commercial recycling as described in equivalent to the contract services provided for multifamily recycling. Please provide the additional cost of providing embedded commercial recycling expressed as $x.xx per cubic yard of garbage collected. This amount would be added to the commercial and drop-box rates if this alternative were implemented.

9. Alternative Service Fee Escalation Component: The draft contract includes a Consumer

Price Index escalator. Under this alternative, the BLS CPI for Water, Sewer and Trash would be substituted as the index used to calculate annual service fee escalations. The floor and ceiling limits contained in the draft contract would be retained with the alternative escalator. Please provide the annual change (+/-) in your initial year annual gross revenue requirement if this contract change were implemented.

10. Alternative Service Fee Escalation Component: The draft contract includes a Consumer

Price Index escalator. Under this alternative, instead of an CPI index, a flat 3.5% increase would be used to calculate annual service fee escalations. Please provide the annual change (+/-) in your initial year annual gross revenue requirement if this contract change were implemented.

Form 3 – Contractor’s Proposal Deposit Surety Bond 30 City of Mercer Island Request for Proposals Garbage, Recyclables and Compostable Collection

Form 3

CONTRACTOR’S PROPOSAL DEPOSIT SURETY BOND to the City of Mercer Island, Washington

We, , as Principal, existing under and by virtue of the laws of the State of Washington and authorized to do business in the State of Washington, and _________________________, as Surety, organized and existing under the laws of the State of _________________ , are held and firmly bound unto the City of Mercer Island, a Washington municipality, as Obligee, in the penal sum of $25,000.00, for the payment of which we jointly and severally bind ourselves, and our legal representatives and successors. WHEREAS, the Principal has submitted a proposal for solid waste collection to the City of Mercer Island. NOW THEREFORE, the condition of the obligation is such that if the Obligee shall accept the proposal of Principal and make timely award to the Principal according to the terms of the RFP documents; and the Principal shall, within ten days after notice of the award, exclusive of the day of notice, enter into the Contract with the Obligee and furnish the contractor’s bonds (performance and payment bonds) with Surety satisfactory to the Obligee as specified in the City’s RFP and draft contract, then this obligation shall be null and void; otherwise if the Principal fails to enter into the Contract and fails to furnish the contractor’s bonds within ten days of notice of award, exclusive of the day of notice, the amount of the proposal deposit shall be forfeited to the Obligee, payable by the Surety; but in no event will the Surety’s liability exceed the face amount of this proposal security bond. This bond may be executed in two original counterparts, and shall be signed by the parties’ duly authorized officers. This bond will only be accepted if it is accompanied by a fully executed and original power of attorney for the officer executing on behalf of the Surety. PRINCIPAL (CONTRACTOR) SURETY Principal Signature Date Surety Signature Date Printed Name Printed Name Title Title Name, address, and telephone of local office/agent of Surety Company is:

Form 4 – Identification of Performance Security 31 City of Mercer Island Request for Proposals Garbage, Recyclables and Compostable Collection

Form 4

IDENTIFICATION OF PERFORMANCE SECURITY If the Proposer is awarded a Contract on this Proposal, the surety or other financial institution that provides the letter of credit or other performance guarantee shall be: _________________________________________________ whose address is _______________________ ______________________, ________________, whose Street City State and Zip Code telephone number is _______________________________, and website address is __________________________________________.

Form 5 – Certification of Proposal – Declaration and Understanding 32 City of Mercer Island Request for Proposals Garbage, Recyclables and Compostable Collection

Form 5

CERTIFICATION OF PROPOSAL - DECLARATION AND UNDERSTANDING

Proposer’s Declaration and Understanding The undersigned Proposer declares that the only persons or parties beneficially or financially interested in this Proposal are those named herein; that this Proposal is, in all respects, fair and without fraud; that it is made without collusion; and that the Proposal is made without any connection or collusion with any person submitting another Proposal in connection with this RFP. The Proposer declares that this Proposal is genuine and not made in the interest of or on behalf of any undisclosed person, firm or corporation; this Proposal is not submitted in conformity with any agreement or rules of any group, association, organization or corporation; the Proposer has not directly or indirectly entered into any agreement, induced or solicited any other Proposer to submit a false or sham Proposal; the Proposer has not solicited or induced any person, firm or corporation to refrain from Proposing; the Proposer has not sought by collusion, fraud, deceit or any unlawful act to obtain for itself any advantage over any other Proposer or over the City; and Proposer has not otherwise taken any action in the restraint of free competitive proposals in connection with the Services for which this Proposal is submitted. The Proposer declares that it has familiarized itself with the nature and extent of the Base Contract, the existing solid waste collection services, all local conditions and all other relevant facilities, properties, laws and regulations that in any manner may affect cost, implementation, progress, performance or furnishing of the Services. The Proposer has satisfied itself as to the services and equipment to be provided, including the fact that the description of the services and equipment is brief and is intended only to indicate the general nature of the Services, and that this Proposal is made according to the provisions and under the terms and conditions of the Base Contract, which fully and completely incorporated into this Proposal by this reference. The Proposer further acknowledges that it has satisfied itself as to the nature and location of the solid waste handling services, the general and local conditions, particularly those bearing on the availability of equipment, access, recycling and compostable material markets, disposal fees, availability of labor, roads, and the uncertainties of weather or similar physical conditions in the City, the character of equipment and facilities needed to execute the Services, and all other matters that may in any way affect the Services or the cost thereof under the Base Contract. The Proposer further acknowledges that it has satisfied itself as to the character, quality and quantity of information provided by the City regarding the existing solid waste collection services and solid waste system, and the Proposer has adequately investigated the City’s customer base and any additional information that may be provided by the City. Failure by the Proposer to acquaint itself with the physical conditions of the City’s customer base and all


available information shall not relieve it from responsibility for properly estimating the difficulty or cost of successfully performing the Services and providing the equipment required under the Contract. The Proposer warrants that, as a result of its examination and investigation of all the data referenced above, it can execute the Services in a good, timely and workmanlike manner and to the satisfaction of the City. The City assumes no responsibility for any representation made by any of its officers, employees, representatives, or agents during or prior to the execution of the Contract, unless (1) such representations are expressly stated in the Contract; and/or (2) the Contract expressly provides that the City assumes the responsibility. The Proposer has given the City written notice in a timely manner of all conflicts, errors, omissions or discrepancies that it has discovered in the Proposal Documents and the written resolution thereof by the City is acceptable to the Proposer. Contract Execution, Performance Guarantees and Insurance If this Proposal is accepted, the Proposer proposes and agrees to enter into a Contract with the City, in the form provided in the Proposal Documents and as revised via subsequent addenda, to provide services and equipment (“Services”) as specified or indicated in the Base Contract for the prices and during the time period indicated in this Proposal and in accordance with the other terms and conditions of the Base Contract. The Proposer accepts all of the terms and conditions of the Proposal Documents, including, without limitation, those dealing with the disposition of Proposal security. This Proposal will remain subject to acceptance until 180 days following Proposal submittal. The Selected Proposer shall sign and submit the Contract with the appropriate performance security and proof of insurance acceptable to Mercer Island within five (5) days of completion of Contract finalization by the City and the successful Proposer. Self-Reliance The Proposer acknowledges that the information contained in this Proposal represents its understanding of the City’s existing solid waste collection services, terrain, streets, alleys, container locations, recycling and compostables markets, and other conditions that could affect the costs or operational efficiencies of fulfilling the Contract. In preparing this Proposal, the Proposer acknowledges that it is solely responsible for its Proposal and that it has relied on its own investigation and research. Start Of Services And Contract Term If awarded a Contract, the Proposer agrees to commence all Services under the terms and conditions of the Contract on October 1, 2019 and to continue providing services throughout the term of the Contract as specified therein.


Unit Price Proposer proposes to invoice and collect payments of the Contract charges (rates), as set forth under the provisions of the Base Contract. Proposer charges (rates) may be adjusted upward or downward solely as provided in the Base Contract. Generally, the Proposer shall be responsible for all real (non-inflationary) cost increases, and may benefit from any real cost decreases, except as specifically agreed to in the Contract. Proposer understands that the per-unit served price and the price adjustments are independent of the quantities and quality of materials collected. Proposer agrees that the per-unit served price and the price adjustments represent a reasonable measure of the labor and materials required to execute the Services, including all allowances for overhead and profit, and applicable taxes, fees and surcharges for such services. Prices shall be given in U.S. dollars and cents. Compliance with Process Integrity Requirements Proposer hereby certifies it and its employees, officers, and officials have complied with the Process Integrity Requirements as described in Section 2.16 of the RFP and further agrees to comply with those Guidelines during the Proposal evaluation process. Addenda The Proposer below lists and acknowledges receipt of all Proposal Documents and of the following addenda: Addendum Number Date Proposer agrees that all Addenda issued are part of the Contract, and Proposer further agrees that its Proposal includes all Addenda.


Identification and Authorization The name of the Proposer submitting this Proposal is: ______________________________________________________________ Doing business at: _____________________________________________ Street __________________ ___________________________ _______________ City State Zip Code which is the address to which all communications concerning this Proposal and the Contract will be sent. The names of the principal officers of the corporation submitting this Proposal, or of the partnership, or of all persons interested in this Proposal as principals are as follows: ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ If the Proposer is a partnership, attach to this form and number appropriately a copy of its partnership agreement. If the Proposer is a corporation, attach to these form copies of its Articles of Incorporation, bylaws and Certificate of Good Standing, as certified by the Secretary of the Board of Directors.

If Sole Proprietor or Partnership IN WITNESS hereto the undersigned has set its hand this ____ day of ____________, 2018. ____________________________________ Signature of Proposer ____________________________________ Title


If Corporation IN WITNESS whereof the undersigned corporation has caused this instrument to be executed by its duly authorized officers this _____ day of __________________, 2018. _____________________________________ Name of Corporation _____________________________________ By _____________________________________ Title _____________________________________ Attest (Secretary)

Appendices 37 City of Mercer Island Request for Proposals Garbage, Recyclables and Compostable Collection

Appendices Appendix A: Base Draft Contract Appendix B: Contractor-Reported Data Appendix C: Form 2 Appendix D: Industry Review Comments and Responses

APPENDIX A - RFP DRAFT 07/19/18

1 2

3

COMPREHENSIVE 4

GARBAGE, RECYCLABLES, AND COMPOSTABLES 5

COLLECTION SERVICES 6

CONTRACT 7

8 9 10 11 12 13

City of Mercer Island 14

and 15

Click here to enter text. 16 17

October 1, 2019 – September 30, 2029 18 19 20 21 22

23

Comprehensive Garbage, Recyclables, and Compostables Collection Services Contract

Table of Contents

City of Mercer Island ii JuneJuly, 2018 Comprehensive Garbage, Recyclables, and Compostables Collection Contract

1 RECITALS ............................................................................................................................................ 1 2 AGREEMENT ....................................................................................................................................... 1 3 1. DEFINITIONS ................................................................................................................................... 1 4 2. TERM OF CONTRACT ....................................................................................................................... 6 5 3. CONTRACTOR REPRESENTATIONS AND WARRANTIES....................................................................... 6 6 4. SCOPE OF WORK ............................................................................................................................. 7 7

4.1 GENERAL COLLECTION SYSTEM REQUIREMENTS ......................................................................................... 7 8 4.1.1 Service Area ................................................................................................................................... 7 9 4.1.2 Service to Residences on Private Roads and Driveways ................................................................ 7 10 4.1.3 Hours/Days of Collection ............................................................................................................... 7 11 4.1.4 Employee Conduct ......................................................................................................................... 8 12 4.1.5 Disabled Persons Service ............................................................................................................... 8 13 4.1.6 Holiday Schedules .......................................................................................................................... 9 14 4.1.7 Inclement Weather ........................................................................................................................ 9 15 4.1.8 Suspending Collection from Problem Customers......................................................................... 10 16 4.1.9 Missed Collections ....................................................................................................................... 10 17 4.1.10 Same Day Collection .................................................................................................................. 11 18 4.1.11 Requirement to Recycle and Compost and Quality Assurance.................................................. 11 19 4.1.12 Routing, Notification and Approval ........................................................................................... 12 20 4.1.13 Vehicle and Equipment Type/Age/Condition/Use ..................................................................... 12 21 4.1.14 Container Requirements and Ownership .................................................................................. 13 22

4.1.14.1 Garbage, Recyclables, and Compostables Micro-cans, Carts and Food Mini-cans ........................................... 14 23 4.1.14.2 Detachable Containers and Drop-box Containers ............................................................................................. 15 24 4.1.14.3 Ownership .......................................................................................................................................................... 16 25 4.1.14.4 Container Colors and Labeling ........................................................................................................................... 16 26 4.1.14.5 Container Weights .............................................................................................................................................. 17 27 4.1.14.6 Container Removal Upon City or Customer Request ........................................................................................ 17 28

4.1.15 Inventory of Vehicles and Facilities ........................................................................................... 17 29 4.1.16 Spillage ...................................................................................................................................... 18 30 4.1.17 Pilot Programs ........................................................................................................................... 18 31 4.1.18 Disruption Due to Construction ................................................................................................. 19 32 4.1.19 Contractor Planning and Performance Under Labor Disruption ............................................... 19 33 4.1.20 Site Planning and Building Design Review ................................................................................ 21 34 4.1.21 Safeguarding Public and Private Facilities ................................................................................ 21 35 4.1.22 Transition and Implementation of Contract .............................................................................. 21 36 4.1.23 Hiring Preference ....................................................................................................................... 22 37 4.1.24 Performance Review .................................................................................................................. 22 38 4.1.25 Continual Monitoring and Evaluation of Operations ................................................................ 23 39 4.1.26 Collection/Disposal Restrictions ................................................................................................ 23 40 4.1.27 Emergency Response ................................................................................................................. 24 41

4.2 COLLECTION SERVICES .........................................................................................................................25 42 4.2.1 Single-Family Residence Garbage Collection ............................................................................... 25 43

4.2.1.1 Subject Materials ................................................................................................................................................. 25 44


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City of Mercer Island iii JuneJuly, 2018 Comprehensive Garbage, Recyclables, and Compostables Collection Contract

4.2.1.2 Containers ............................................................................................................................................................ 25 1 4.2.1.3 Specific Collection Requirements ........................................................................................................................ 25 2

4.2.2 Single-Family Residence Recyclables Collection .......................................................................... 26 3 4.2.2.1 Recyclable Materials ............................................................................................................................................ 26 4 4.2.2.2 Containers ............................................................................................................................................................ 26 5 4.2.2.3 Specific Collection Requirements ........................................................................................................................ 26 6

4.2.3 Single-Family Residence Compostables Collection ...................................................................... 27 7 4.2.3.1 Subject Materials ................................................................................................................................................. 27 8 4.2.3.2 Containers ............................................................................................................................................................ 27 9 4.2.3.3 Specific Collection Requirements ........................................................................................................................ 27 10

4.2.4 Multifamily Complex and Commercial Customer Garbage Collection ........................................ 28 11 4.2.4.1 Subject Materials ................................................................................................................................................. 28 12 4.2.4.2 Containers ............................................................................................................................................................ 28 13 4.2.4.3 Specific Collection Requirements ........................................................................................................................ 28 14

4.2.5 Multifamily Complex and Commercial Recyclables Collection .................................................... 29 15 4.2.5.1 Subject Materials ................................................................................................................................................. 29 16 4.2.5.2 Containers ............................................................................................................................................................ 29 17 4.2.5.3 Specific Collection Requirements ........................................................................................................................ 29 18

4.2.6 Multifamily Complex and Commercial Customer Compostables Collection ............................... 30 19 4.2.6.1 Subject Materials ................................................................................................................................................. 30 20 4.2.6.2 Containers ............................................................................................................................................................ 30 21 4.2.6.3 Specific Collection Requirements ........................................................................................................................ 30 22

4.2.7 Drop-Box Container Garbage Collection ..................................................................................... 30 23 4.2.7.1 Subject Materials ................................................................................................................................................. 30 24 4.2.7.2 Containers ............................................................................................................................................................ 30 25 4.2.7.3 Specific Collection Requirements ........................................................................................................................ 31 26

4.2.8 Temporary (Non-Event) Container Customers ............................................................................ 31 27 4.2.9 Special Event Services .................................................................................................................. 31 28 4.2.10 City Services ............................................................................................................................... 32 29 4.2.11 Community Events ..................................................................................................................... 33 30 4.2.12 On-call Bulky Waste Collection .................................................................................................. 33 31 4.2.13 Excluded Services ....................................................................................................................... 33 32

4.3 COLLECTION SUPPORT AND MANAGEMENT ...................................................................................33 33 4.3.1 General Customer Service ........................................................................................................... 33 34 4.3.2 Specific Customer Service Requirements ..................................................................................... 34 35

4.3.2.1 Customer Service Representative Staffing .......................................................................................................... 34 36 4.3.2.2 City Customer Service .......................................................................................................................................... 35 37 4.3.2.3 Service Recipient Complaints and Requests ........................................................................................................ 35 38 4.3.2.4 Handling of Customer Calls .................................................................................................................................. 36 39 4.3.2.5 Corrective Measures ............................................................................................................................................ 36 40 4.3.2.6 Contractor Internet Website ................................................................................................................................ 36 41 4.3.2.7 Full Knowledge of Garbage, Recyclables, and Compostables Programs Required ............................................. 37 42 4.3.2.8 Customer Communications .................................................................................................................................. 37 43

4.3.3 Contractor’s Customer Billing Responsibilities ............................................................................ 38 44 4.3.4 Reporting ..................................................................................................................................... 39 45

4.3.4.1 Monthly Reports .................................................................................................................................................. 39 46 4.3.4.2 Annual Reports ..................................................................................................................................................... 41 47 4.3.4.3 Ad Hoc Reports ..................................................................................................................................................... 42 48 4.3.4.4 Other Reports ....................................................................................................................................................... 42 49

4.3.5 Promotion and Education ............................................................................................................ 42 50


Table of Contents

City of Mercer Island iv JuneJuly, 2018 Comprehensive Garbage, Recyclables, and Compostables Collection Contract

5. COMPENSATION ........................................................................................................................... 43 1 5.1 COMPENSATION TO THE CONTRACTOR ...................................................................................................43 2 5.2 COMPENSATION TO THE CITY ................................................................................................................45 3 5.3 COMPENSATION ADJUSTMENTS ............................................................................................................46 4

5.3.1 Annual CPI Service Component Modification .............................................................................. 46 5 5.3.2 Changes in Disposal Fees ............................................................................................................. 46 6 5.3.3 Changes in Disposal or Compostables Processing Sites .............................................................. 46 7 5.3.4 Other Modifications .................................................................................................................... 47 8 5.3.5 New or Changes in Existing Taxes ............................................................................................... 47 9 5.3.6 Changes in Service Provision ....................................................................................................... 47 10

5.4 CHANGE IN LAW ................................................................................................................................48 11 6. FAILURE TO PERFORM, REMEDIES, TERMINATION .......................................................................... 48 12

6.1 PERFORMANCE FEES ...........................................................................................................................48 13 6.2 CONTRACT DEFAULT ...........................................................................................................................51 14

7. NOTICES ........................................................................................................................................ 52 15 8. GENERAL TERMS ........................................................................................................................... 52 16

8.1 COLLECTION RIGHT ............................................................................................................................53 17 8.2 ACCESS TO RECORDS ..........................................................................................................................53 18 8.3 INSURANCE .......................................................................................................................................53 19

8.3.1 Minimum Scope of Insurance ...................................................................................................... 54 20 8.3.2 Minimum Amounts of Insurance ................................................................................................. 55 21 8.3.3 Other Insurance Provisions .......................................................................................................... 55 22 8.3.4 Acceptability of Insurers .............................................................................................................. 55 23 8.3.5 Verification of Coverage .............................................................................................................. 56 24 8.3.6 Subcontractors ............................................................................................................................ 56 25

8.4 PERFORMANCE BOND .........................................................................................................................56 26 8.5 INDEMNIFICATION ..............................................................................................................................56 27

8.5.1 Indemnify and Hold Harmless ..................................................................................................... 56 28 8.6 CONFIDENTIALITY OF INFORMATION .......................................................................................................57 29 8.7 ASSIGNMENT OF CONTRACT .................................................................................................................57 30

8.7.1 Assignment or Pledge of Money by the Contractor .................................................................... 57 31 8.7.2 Assignment, Subcontracting, Delegation of Duties ..................................................................... 58 32

8.7.3 CHANGE OF TRADE NAME .................................................................................................................58 33 8.8 LAWS TO GOVERN/VENUE ...................................................................................................................58 34 8.9 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS ..........................................................................58 35 8.10 PERMITS AND LICENSES .....................................................................................................................59 36 8.11 RELATIONSHIP OF PARTIES .................................................................................................................59 37 8.12 CONTRACTOR’S RELATIONSHIP WITH CUSTOMERS ...................................................................................60 38 8.13 BANKRUPTCY ..................................................................................................................................60 39 8.14 RIGHT TO RENEGOTIATE/AMEND ........................................................................................................60 40 8.15 FORCE MAJEURE ..............................................................................................................................60 41 8.16 SEVERABILITY ..................................................................................................................................61 42 8.17 WAIVER .........................................................................................................................................61 43 8.18 INCORPORATION OF CONTRACTOR’S PROPOSAL IN RESPONSE TO CITY’S RFP ................................................61 44


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City of Mercer Island v JuneJuly, 2018 Comprehensive Garbage, Recyclables, and Compostables Collection Contract

8.19 DISPUTE RESOLUTION .......................................................................................................................61 1 8.20 ENTIRETY .......................................................................................................................................62 2

3 4 EXHIBITS: 5 6 EXHIBIT A: Service Area 7 EXHIBIT B: Contractor Rates 8 EXHIBIT C: Recyclables List 9 EXHIBIT D: Rate Modification Example 10 11

City of Mercer Island 1 JuneJuly, 2018 Comprehensive Garbage, Recyclables, and Compostables Collection Services Contract

This Comprehensive Garbage, Recyclables, and Compostables Collection Services Contract 1 (hereafter, “Contract”), passed by the Mercer Island City Council at its regular meeting on the ____day 2 of _____, 2018. This Contract is made and entered into this _______ day of ____________, 2018 3 (hereafter the “Date of Execution”), by and between the City of Mercer Island, a municipal corporation 4 (hereafter “City”), and ___________________ (hereafter “Contractor”). 5 6

RECITALS 7 8 WHEREAS, the City has conducted a competitive process to select a contractor to provide Garbage, 9 Recyclables, and Compostables collection services to all residents, businesses, and institutions located 10 within the Service Area; and 11 12 WHEREAS, the Contractor, having participated in the competitive process, acknowledges that the City 13 conducted a thorough and exhaustive competitive process; and 14 15 WHEREAS, the Contractor, having participated in the competitive process, acknowledges that the City 16 had the right at any time during the process to reject any or all of the competitors, regardless of their 17 proposals or prices; and 18 19 WHEREAS, having completed the competitive process, the City has selected the best candidate to 20 provide the services outlined in the competitive process; and 21 22 WHEREAS, the Contractor represents and warrants that it has the experience, resources, and expertise 23 necessary to perform the services as requested in the competitive process; and 24 25 WHEREAS, the City desires to enter into this Contract with the Contractor for the services outlined in the 26 competitive process and included below; 27 28 NOW, THEREFORE, in consideration of the mutual covenants, agreements, and promises herein 29 contained, the City and Contractor do agree as follows: 30 31

AGREEMENT 32 33 34 1. DEFINITIONS 35 36 The following definitions apply to terms used in this Contract: 37 38 Bulky Waste: Discrete items of Garbage of a size or shape that precludes collection in regular collection 39 containers. Bulky Waste includes: large appliances (such as refrigerators, freezers, stoves, dishwashers, 40 clothes washing machines or dryers), water heaters, furniture (such as chairs or sofas), televisions, 41 mattresses, and other similar large items placed at the Curb as discrete separate items. Bulky Waste 42 does not include piles of debris, car parts, construction or demolition debris, any item that would be 43 considered Hazardous Waste, or stumps. 44


1 Cart: A Contractor-provided 20-, 35-, 64-, or 96-gallon wheeled Container with attached lid suitable for 2 collection, storage, and Curbside placement of Garbage, Recyclables, or Compostables. Carts shall be 3 rodent and insect resistant and kept in sanitary condition by the Contractor at all times. 4 5 Change of Control: The term “Change of Control” means any single transaction or series of related 6 transactions by which the beneficial ownership of more than 50% of the voting securities of the 7 Contractor is acquired by a person or entity, or by a related or affiliated group of persons or entities, 8 who as of the effective date of the Contract do not have such a beneficial interest; provided, however, 9 that intra-company transfers, such as transfers between different subsidiaries or branches of the parent 10 corporation of the Contractor, or transfers to corporations, limited partnerships, or any other entity 11 owned or controlled by the Contractor upon the effective date of the Contract, and transactions 12 effected on any securities exchange registered with the U.S. Securities and Exchange Commission, shall 13 not constitute a Change in Control. 14 15 City: The word “City” means the City of Mercer Island, in King County, Washington. As used in the 16 Contract, use of the term “City” may include reference to the City Manager or his/her designated 17 representative. Where the context makes it apparent, references to staff, streets, rights-of-way, 18 activities and things refer to the staff, streets, rights-of-way and activities of the City, and things 19 belonging to or located within the City. 20 21 Commercial Customer: Non-Residential Customers, including businesses, institutions, governmental 22 agencies, and all other users of commercial-type Garbage collection services. 23 24 Compostables: Any organic waste material that is Source-separated for processing or composting, such 25 as Yard Debris and Foodscraps generated by any Residential or Commercial customers. Shredded 26 uncontaminated paper shall be accepted as a Compostable material. 27 28 Contractor: __________________., which has contracted with the City to provide all Services identified 29 in this Contract, including, but not limited to, collecting, transporting, and disposing of Garbage and 30 collecting, processing, marketing, and transporting Recyclables and Compostables. 31 32 Container: Any Food Mini-can, Garbage Can, Cart, Detachable Container, or Drop-box Container used in 33 the performance of this Contract. 34 35 Contract: Refers to this contract for comprehensive garbage, recyclables and compostable collection 36 services. 37 38 Contract Term: Refers to the term of this Contract as provided for in Section 2. 39 40 County: King County in Washington State. 41 42 Curb or Curbside: Refers to the Customers’ property, within five (5) feet of the Public Street or Private 43 Road (or on the sidewalk without completely obstructing the sidewalk, if there is no Customer property 44 within five (5) feet of the Public Street or Private Road) without blocking driveways or on-street parking. 45 If extraordinary circumstances preclude such a location, Curbside shall be considered a placement 46


suitable to the Customer, convenient to the Contractor’s equipment, and mutually agreed to by the City 1 and Contractor. 2 3 Customer: All account-holders of the Contractor’s services within the City. 4 5 Date of Commencement of Service: October 1, 2019, which is the date that the Contractor agrees to 6 commence the provision of Services as described throughout this Contract. 7 8 Date of Execution: The date that this Contract is executed by all signatories. 9 10 Day/Days: Calendar days unless otherwise specified. 11 12 Detachable Container: A watertight metal or plastic container equipped with a tight-fitting cover, 13 capable of being mechanically unloaded into a collection vehicle, and that is not less than one (1) cubic 14 yard or greater than eight (8) cubic yards in capacity. 15 16 Driveway: A privately-owned and maintained way that connects a Residence or parking 17 area/garage/carport with a Private Road or Public Street. 18 19 Drop-box Container: An all-metal loose material or compactor container with ten (10) cubic yards or 20 more capacity that is loaded onto a specialized collection vehicle. 21 22 Environmental Law: Any applicable federal, state, or local statue, code, or ordinance or federal or state 23 administrative rule, regulation, ordinance, order, decree, or other governmental authority as now or at 24 any time hereafter in effect pertaining to the protection of human health or the environment 25 26 Extra Unit: Excess material that does not fit in the Customer’s primary Container. In the case of Garbage 27 and Compostables Cart services, an Extra Unit is 32-gallons and may be contained in either a plastic bag 28 or Garbage can. In the case of Garbage Containers one (1) cubic yard or more in capacity, an Extra Unit is 29 96-gallons. 30 31 Food Mini-can: A water-tight plastic container twelve or thirteen (12/13) gallons in capacity; fitted with 32 two (2) sturdy handles or handholds and fitted with a tight cover. All Food Mini-cans provided by the 33 Contractor shall be rodent and insect proof and kept in sanitary conditions by the Customer at all times. 34 35 Food Scraps: All compostable pre- and post-consumer food waste, such as whole or partial pieces of 36 produce, meats, bones, cheese, bread, cereals, coffee grounds, or egg shells, and food-soiled paper, 37 such as paper napkins, paper towels, paper plates, coffee filters, paper take-out boxes, pizza boxes, or 38 other paper products accepted by the Contractor’s selected composting site. Food Scraps shall not 39 include dead animals, plastics, diapers, cat litter, liquid wastes, ashes, pet wastes, or other materials 40 prohibited by the selected composting facility. The range of materials handled by the Compostables 41 collection program may be changed from time to time upon the mutual agreement of the Parties to 42 reflect those materials allowed by the jurisdictional health department for the frequency of collection 43 provided by the Contractor. 44 45 Garbage: All putrescible and non-putrescible solid and semi-solid wastes, including, but not limited to, 46 rubbish, ashes, industrial wastes, swill, demolition and construction wastes, dead small animals 47


completely wrapped in plastic and weighing less than fifteen (15) pounds, and discarded commodities 1 that are placed by Customers in appropriate Containers, bags, or other receptacles for collection and 2 disposal by the Contractor. Needles or “sharps” used for the administration of medication can be 3 included in the definition of “Garbage,” provided that they are placed within a sealed, secure container 4 as agreed upon by the City and the Contractor and this handling is consistent with current King County 5 sharps policy. The term “Garbage” shall not include Hazardous Wastes, Source-separated recyclable 6 materials, or Source-separated Compostables. 7 8 Garbage Can: A Container that is a water-tight galvanized sheet-metal or plastic container not exceeding 9 four (4) cubic feet or thirty-two (32) gallons in capacity; fitted with two (2) sturdy looped handles, one 10 on each side; and fitted with a tight cover equipped with a handle. All Containers shall be rodent and 11 insect proof and kept in sanitary conditions by their owner at all times. 12 13 Hazardous Waste: Any hazardous, toxic, or dangerous waste, substance, or material, or contaminant, 14 pollutant, or chemical, known or unknown, defined or identified as such in any existing or future local, 15 state, or federal law, statute, code, ordinance, rule, regulation, guideline, decree, or order relating to 16 human health or the environment or environmental conditions, including but not limited to any 17 substance that is: 18 19

A. Defined as hazardous by 40 C.F.R. Part 261.3 and regulated as hazardous waste by the United 20 States Environmental Protection Agency under Subtitle C of the Resource Conservation and 21 Recovery Act (“RCRA”) of 1976, 42 U.S.C. § 6901 et seq., as amended by the Hazardous and Solid 22 Waste Amendments (“HSWA”) of 1984; the Toxic Substances Control Act, 15 U.S.C. § 2601 et 23 seq., as may be amended; or any other federal statute or regulation governing the treatment, 24 storage, handling, or disposal of waste imposing special handling or disposal requirements 25 similar to those required by Subtitle C of RCRA; 26

27 B. Defined as dangerous or extremely hazardous by WAC 173-303-040, as may be amended, and 28

regulated as dangerous waste or extremely hazardous waste by the Washington State 29 Department of Ecology under the State Hazardous Waste Management Act, Chapter 70.105 30 RCW, or any other Washington State statute, regulation or rule governing the treatment, 31 storage, handling, or disposal of wastes and imposing special handling requirements similar to 32 those required by Chapter 70.105 RCW; and 33 34

C. Any substance that comes within the scope of this definition as determined by the City after the 35 Date of Execution of this Contract. 36

37 Any substance that ceases to fall within this definition as determined by the City after the Date of 38 Execution of this Contract shall not be deemed to be Hazardous Waste. 39 40 Multifamily Complex: A multiple-unit Residence with multiple attached or unattached dwellings billed 41 collectively for collection service. 42 43 On-call: The provision of specified services only upon direct telephone, written, or e-mailed request of 44 the Customer to the Contractor. 45 46 Party: Either the City or the Contractor. 47


1 Parties: The City and Contractor. 2 3 Private Road: A privately-owned and maintained way that allows for access by a service vehicle and 4 that serves multiple Residences. 5 6 Public Street: A public right-of-way used for public travel, including public alleys. 7 8 Recycling: The preparation, collection, transport, processing, and marketing of Recyclables. 9 10 Recyclables: The materials designated as being part of a Residential or Commercial Recycling collection 11 program, as listed in Exhibit C. 12 13 Residence/Residential: A single-family and/or multifamily living space individually rented, leased or 14 owned. 15 16 Services: Refers to the comprehensive garbage, recyclables and compostables collection and processing 17 services provided by the Contractor pursuant to the Contract. 18 19 Service Area: The service boundaries indicated in Exhibit A as of the Date of Commencement of Service, 20 which shall be the City’s corporate boundaries. 21 22 King County Disposal System: The areas owned, leased, or controlled by King County, Washington for 23 the disposal of Garbage, or such other site as may be authorized by the current King County 24 Comprehensive Solid Waste Management Plan and the Interlocal Agreement between the City and King 25 County. 26 27 Single-Family Residence: All one-unit houses, duplexes, triplexes, four-plexes, and mobile homes that 28 are billed for collection service individually and located on a Public Street or Private Road. 29 30 Source-separated: Certain reclaimable materials that are separated from Garbage by the generator for 31 recycling or reuse, including but not limited to Recyclables, Compostables, and other materials. 32 33 Strike Contingency Plan: The plan the Contractor will develop pursuant to Section 4.1.19 of this 34 Contract. 35 36 Transition and Implementation Plan: The plan that the Contractor will develop pursuant to Section 37 4.1.22 of this Contract. 38 39 Unacceptable Waste: Highly flammable substances, Hazardous Waste, liquid wastes, special wastes, 40 certain pathological and biological wastes, explosives, toxic materials, radioactive materials, material 41 that the disposal facility is not authorized to receive and/or dispose of, and other materials deemed by 42 state, federal or local law, or in the reasonable discretion of the Contractor, to be dangerous or 43 threatening to heal or the environment, or which cannot be legally accepted at the applicable disposal 44 facility. 45 46 WUTC: The Washington Utilities and Transportation Commission. 47


1 Yard Debris: Leaves, grass, prunings, branches and small trees. Materials larger than four (4) inches in 2 diameter or four (4) feet in length are excluded. Bundles of Yard Debris up to two (2) feet in diameter by 3 four (4) feet in length and no more than fifty-five (55) pounds, shall be allowed, and shall be secured by 4 degradable string or twine, not nylon or other synthetic materials. Un-flocked, undecorated whole 5 Christmas trees cut to less than six (6) feet in height are acceptable. Kraft paper bags, or Garbage Cans 6 labeled “Yard Debris” may also be used to contain extra Yard Debris. 7 8 2. TERM OF CONTRACT 9 10 The Term of this Contract is ten (10) years starting on the Date of Commencement of Service. The City 11 and Contractor, may, at the sole option of the City, extend the Contract up to two (2) extensions, each 12 of which shall not exceed one two (21) years in duration. Any extension shall be under the original terms 13 and conditions of this Contract or as the Contract may have been amended at the time of the extension. 14 To exercise the option to extend this Contract, written notice shall be given by the City to the Contractor 15 not less than ninety (90) days prior to the expiration of the Contract Term or the expiration of a previous 16 extension. With the parties’ written consent, the requirement of 90 days’ prior notice may be waived. 17 18 3. CONTRACTOR REPRESENTATIONS AND WARRANTIES 19 20 The Contractor represents and warrants to the City as follows: 21 22

• Organization and Qualification. The Contractor is duly incorporated, validly existing, and in good 23 standing under the laws of the state of Washington, and has all requisite corporate power and 24 authority to enter into and to perform its obligations under this Contract. 25

26 • Authority. The Contractor has the authority to execute this Contract, to make the 27

representations and warranties set forth in it, and to perform the obligations of the Contractor 28 under this Contract in accordance with its terms. This Contract has been validly executed by an 29 authorized representative of the Contractor, with the authority to sign on behalf of and bind the 30 Contractor, and this Contract constitutes a valid and legally binding and enforceable obligation 31 of Contractor. 32

33 • Government Authorizations and Consents. The Contractor has or will obtain at its sole cost prior 34

to the Date of Commencement of Service any such licenses, permits, and other authorizations 35 from federal, state, and other governmental authorities, as are necessary for the performance 36 of its obligations under this Contract. 37

38 • Compliance with Laws. The Contractor is not in violation of any applicable laws, ordinances, or 39

regulations, which may impact the Contractor’s ability to perform its obligations under this 40 Contract or which may have any impact on the City. The Contractor is not subject to any order 41 or judgment of any court, tribunal, or governmental agency that impacts its operations or assets 42 or its ability to perform its obligations under this Contract. 43

44 • Accuracy of Information. None of the representations or warranties in this Contract, and none of 45

the documents, statements, reports, certificates, or schedules furnished or to be furnished by 46 the Contractor pursuant to this Contract or in connection with the performance of the 47


obligations contemplated under this Contract, at any time contain or will contain untrue 1 statements of a material fact or omissions of material facts. 2 3

• Independent Examination. In accepting these responsibilities, the Contractor represents and 4 affirms that it has made its own examination of all conditions affecting the performance of this 5 Contract, currently and into the future, and of the quantity, quality, and expense of labor, 6 equipment, vehicles, facilities, properties, materials needed, and of applicable taxes, permits, 7 and applicable laws. The Contractor affirms that within the Service Area it is aware of the 8 present placement and location of all Containers. The Contractor represents and warrants that it 9 is capable of collecting all Containers from their present locations, and that it is capable of 10 providing service to and collection of Containers in any areas of the Service Area that may be 11 built out or developed during the term of this Contract. 12

13 4. SCOPE OF WORK 14 15 4.1 General Collection System Requirements 16 17 4.1.1 Service Area 18 19 The Contractor shall provide all Services pursuant to this Contract throughout the entire Service Area. 20

4.1.2 Service to Residences on Private Roads and Driveways 21 22 The Contractor shall provide Curbside service to all Residences located on Private Roads, except as 23 noted in this Section. Drive-in charges are to be used only for requested service on Driveways and are 24 prohibited on Private Roads. The Contractor shall use smaller limited-access service vehicles as 25 necessary to provide service to those Customers. 26 27 In the event that the Contractor believes that a Private Road cannot be safely negotiated or that 28 providing walk-in service on Driveways for Single-Family Residence Customers is impractical due to 29 distance or unsafe conditions, the Contractor may request that the City evaluate on-site conditions and 30 make a determination of the best approach for providing safe and appropriate service to the Customer. 31 The City’s determination shall be final, provided that the Contractor shall not be required to endanger 32 workers, equipment, or property. 33 34 If the Contractor believes that there is a probability of Private Road or Driveway damage, the Contractor 35 shall inform the respective Customer(s) and may require a road damage waiver agreement in a form 36 previously approved by the City. In such event, if the Customer(s) refuse to sign such a road damage 37 waiver, the Contractor may decline to provide service on those Private Roads or Driveways, and the 38 Customer(s) will only be serviced from the closest Public Road access. Such determination that damage 39 is probable must be approved in writing by the City prior to any action or refusal of service by the 40 Contractor. 41 42 4.1.3 Hours/Days of Collection 43 44 All collections from Single-family Residential Customers and Residential zones, including mixed-use 45 areas shall be made between the hours of 7:00 a.m. and 4:00 p.m. on a consistent weekday, unless the 46


City authorizes a temporary extension of hours or days. Saturday collection is allowed to the extent 1 consistent with holiday and inclement weather schedules. 2 3 All collections from Commercial Customers shall be made between the hours of 4:00 a.m. and 4:00 p.m., 4 provided that service to those Customers shall neither disturb Residential Customers in adjoining 5 Residential zoned areas, nor violate the noise provisions of the Mercer Island Municipal Code, as 6 amended. Collections from Commercial Customers within audible distance of Residential Customers 7 shall be made only between the hours of 7:00 a.m. and 4:00 p.m., and no earlier than 9:00 a.m. on 8 Saturday in the event of make-up collections. Exemptions to the hour requirements may be granted in 9 writing in advance by the City to accommodate the special needs of Commercial Customers where 10 allowed by the Mercer Island Municipal Code. The City’s noise ordinance, as amended, may further 11 restrict these terms and hours of collection. 12 13 4.1.4 Employee Conduct 14 15 The Contractor’s employees collecting Garbage, Recyclables, or Compostables shall at all times be 16 courteous, refrain from loud, inappropriate or obscene language, exercise due care, perform their work 17 without delay, minimize noise, and avoid damage to public and private property. If on private property, 18 Contractor employees shall follow the regular pedestrian walkways and paths, returning to the street 19 after replacing empty Containers. Contractor employees shall not trespass or loiter, cross flowerbeds, 20 hedges, or property of adjoining premises, or meddle with property that does not concern them or their 21 task at hand. While performing work under the Contract, Contractor employees shall wear a 22 professional and presentable uniform with a an identifying badge with photo identification and 23 company emblem visible to the average observer, and carry photo identification on their person. At the 24 City’s option and direction, Contractor employees shall work with groups or organizations, such as 25 neighborhood community organizations, homeowner associations, or the City’s Utilities, Police, or Fire 26 Departments, for training to recognize and call the appropriate agency when suspicious activities are 27 observed. 28 29 If any person employed by the Contractor to perform collection services is, in the opinion of the City, 30 incompetent, disorderly, or otherwise unsatisfactory, the City shall promptly document the 31 incompetent, disorderly, or unsatisfactory conduct in writing and transmit the documentation to the 32 Contractor with a demand that such conduct be corrected. The Contractor shall promptly investigate 33 any written complaint from the City regarding any unsatisfactory performance by any of its employees 34 and take immediate corrective action. The City reserves the right to request at any time that the person 35 be removed from all performance of additional work under this Contract. The Contractor shall remove 36 the employee from Contract work immediatelywithin four hours of City notification. 37

4.1.5 Disabled Persons Service 38 39 The Contractor shall provide carryout service for Garbage, Recyclables, and Compostables to Single-40 Family Residence Customers in cases where no household member has the ability to place Containers at 41 the Curb, at no additional charge. The Contractor shall use criteria that are fair and meet the needs of 42 the City’s disabled residents. These criteria shall comply with all local, state and federal regulations, and 43 shall be subject to City review and approval prior to program implementation, which shall not be 44 unreasonably withheld by the City. 45 46


4.1.6 Holiday Schedules 1 2 The Contractor shall observe the same holiday schedule as the King County Transfer Stations. When 3 observed holidays fall on a regular collection day, the Contractor shall reschedule the remainder of the 4 week of regular collection to the next succeeding business day, which shall include Saturdays. The 5 Contractor may not collect Single-Family Residence and Multifamily Complex Garbage, Recyclables, or 6 Compostables earlier than the regular collection day due to a holiday. Commercial collections may be 7 made one (1) day early only with the consent of the Commercial Customer. Holiday scheduling 8 information shall be included in written program materials, on the Contractor’s web site, and by press 9 releases to general news media in the Mercer Island area by the Contractor the week prior to the 10 holiday affecting service. 11 12 4.1.7 Inclement Weather 13 14 The Contractor shall provide all collection services unless weather conditions are such that continued 15 operation would result in danger to the Contractor’s staff, area residents, or property. In that event, the 16 Contractor shall collect only in areas that do not pose a danger. The Contractor shall notify the City by 17 telephone or email of the areas not to be served by 6:00 a.m. on the same business day. Once 18 Contractor vehicles are on-route, areas intentionally missed due to hazardous conditions and not 19 previously reported to the City, shall be approved by a route supervisor and reported to the City not 20 later than 125:00 p.m. (noon) on the same business day. The Contractor shall coordinate missed 21 collection areas so that Customers either have all or none of their materials collected to avoid Customer 22 complaints and calls. The Contractor shall provide automated notification calls, texts or e-mails (at 23 Customers’ preference) to all missed Customers by 3:00 p.m., including information about when their 24 next collection is expected. 25 26 In the event that collection services are interrupted for one week for any Single-Family Residential 27 Customers, the Contractor shall collect Garbage, Recyclables and Compostables from those Customers 28 with interrupted service on their next regularly scheduled collection day provided that the Contractor 29 shall offer a make-up collection on Saturday for Customers who call in and pay for an extra make-up 30 collection. The Contractor shall collect Garbage, Recyclables and Compostables from Multifamily 31 Complex and Commercial Customers as soon as safely possible. 32 33 In the event that collection services are interrupted for two or more collection cycles for one or more 34 Single-family Residential Customers, the Contractor shall provide a temporary Residential Garbage and 35 Recycling collection site on the day of the second missed day using driver-staffed Drop-box Containers 36 or other suitable equipment, with no extra charge assessed for such temporary service. 37 38


For all Customers, the Contractor shall collect reasonable accumulated volumes of materials equal to 1 what would have been collected on the missed collection day(s) from Customers at no extra charge. 2 3 Following notification to the City, the Contractor will be provided temporary authorization to perform 4 collection services after 4:00 p.m. and/or on Saturdays following disruptions due to weather in order to 5 finish collection routes. 6 7 Weather policies shall be included in program information provided to Customers and on the 8 Contractor’s city-specific webpage. On each inclement weather day, the Contractor shall release notices 9 to local newspapers and radio stations notifying residents of the modification to the collection schedule. 10 11 4.1.8 Suspending Collection from Problem Customers 12 13 The City and Contractor acknowledge that, in rare cases, some Customers may cause disruptions or 14 conflicts that make continued service to that Customer unreasonable. Those disruptions or conflicts may 15 include, but not be limited to, repeated damage to Contractor-provided containers, repeated suspect 16 claims of timely set-out followed by demands for return collection at no charge, repeated 17 unsubstantiated claims of Contractor damage to a Customer’s property, repeated contamination of 18 Recyclables or Compostables, or other such problems. 19 20 The Contractor shall make every reasonable effort to provide service to those problem Customers. 21 However, the Contractor may deny or discontinue service to a problem Customer after prior written 22 notice is given to the City of the intent to deny or discontinue service, including the name, service 23 address, reason for such action, and whether reasonable efforts to accommodate the Customer and 24 provide services have occurred and failed. If the Customer submits a written letter or e-mail to the City 25 appealing the Contractor decision, the City may, at its discretion, intervene in the dispute. In this event, 26 the decision of the City shall be final. The City may also require the denial or discontinuance of service to 27 any Customer who is abusing the service or is determined to be ineligible. 28 29 4.1.9 Missed Collections 30 31 If Garbage, Recyclables, or Compostables are set out inappropriately, improperly prepared, or 32 contaminated with unacceptable materials, the Contractor shall place in a prominent location a written 33 notification tag that identifies the specific problem(s) and reason(s) for rejecting the materials for 34 collection. Failure to provide proper written notification to Customers, per the quality assurance 35 protocol referenced in Section 4.1.11, of the reason for rejecting materials for collection shall be 36 considered a missed collection and subject to performance fees due to lack of proper Customer 37 notification. 38 39 The failure of the Contractor to collect Garbage, Recyclables, or Compostables that has been set out by a 40 Customer in the proper manner on the appropriate day shall be considered a missed collection, and the 41 Contractor shall collect the materials from the Customer within twenty-four (24) hoursone business day 42 of the Contractor’s receipt of notification of the missed pick-up. If the Contractor is notified of a missed 43 pick-up by 9:00 AM the following business day, the missed pick-up shall be collected that same day. The 44 Contractor shall maintain an electronic record of all calls related to missed collections and the response 45 provided by the Contractor. Such records shall be made available for inspection upon request by the 46


City, and the information shall be included in monthly reports. (See Reporting requirements set forth in 1 Section 4.3.4). 2 3 If the Contractor is requested by the Customer to make a return trip due to no fault of the Contractor, 4 which the Contractor can prove through documentation (e.g., the Containers were not placed at the 5 curb on time and the driver documented that fact in a log, with a photograph, etc.), the Contractor shall 6 charge the Customer an additional return trip fee for this service, provided the Contractor notifies the 7 Customer of this charge in advance and the Customer agrees to payment of the return trip fee. The 8 Contractor will not be liable for a missed collection in such case. 9 10 4.1.10 Same Day Collection 11 12 Garbage, Recyclables, and Compostables collection shall occur on the same regularly scheduled day of 13 the week for Single-Family Residence Customers. The collection of Garbage, Recyclables, and 14 Compostables from Multifamily Complexes and Commercial Customers need not be scheduled on the 15 same day. 16 17 4.1.11 Requirement to Recycle and Compost and Quality Assurance 18 19 The Contractor shall recycle or compost all Source-separated Recyclables and Compostables collected, 20 unless express prior written permission is provided by the City. The Contractor shall use facilities that: 21 22

• Process materials to a high standard to maximize the recovery and recycling of all incoming 23 recyclable and compostable materials; 24

• Are operated to minimize cross-contamination of materials that would result in otherwise 25 Recyclable materials being misdirected to a market or disposal where they would not be 26 recovered; 27

• Are designed and operated to minimize the residual stream of otherwise recoverable materials 28 destined for disposal. 29

• Have sufficient preprocess and screening staff and equipment to ensure that otherwise 30 recoverable materials are not cross-contaminated and rendered non-recyclable due to the 31 nature of the processing facility. 32

33 The City and Contractor agree that the Contractor is being compensated to fully recycle or compost 34 those incoming materials and that maximum cost-effective recovery is a primary objective of the City’s 35 collection programs. 36 37 Concurrently with the start of this Contract, the Contractor shall implement an on-route quality 38 assurance program for Recyclables and Compostables consistent with industry best management 39 practices for tagging, probationary periods, material rejection, and suspension of service. The quality 40 assurance protocol will address thresholds for when contamination levels trigger Customer contact, 41 when to place a Customer on service probation for possible discontinued collection, when to suspend 42 collection service and remove the subject Carts or Containers, and finally but not limited to, procedures 43 to allow a Customer to reinstate and resume service after it has been suspended after following 44 established contamination protocols. The Contractor shall implement the protocol consistently for all 45 Customers and shall notify the City via email of any Customer being handled under the protocol. The 46 City and Contractor shall mutually negotiate and agree on a process reflecting current best management 47


practices used regionally for route monitoring for both Single-family Residential and 1 Commercial/Multifamily sectors. The Contractor and City shall annually update these procedures to 2 ensure that contamination problems are addressed promptly, fairly and consistently for all sectors. 3 4 4.1.12 Routing, Notification and Approval 5 6 The Contractor shall indicate, on a map acceptable to the City, the day of the week Garbage, Recyclables 7 and Yard Debris shall be collected from each Single-family Residence. 8 9 The Contractor may change the day of collection by giving notice at least thirty (30) days prior to the 10 effective date of the proposed change to and obtaining written approval from the City. On the City’s 11 approval, the Contractor shall provide affected Customers with at least fourteen (14) days written, 12 telephone, and/or e-mail notice of pending changes of collection day. The Contractor shall obtain the 13 prior written approval from the City of the notice to be given to the Customer, such approval shall not 14 be unreasonably withheld. 15 16 4.1.13 Vehicle and Equipment Type/Age/Condition/Use 17 18 The Contractor shall use new natural gas-fueled collection or electric vehicles no greater than ten (10) 19 years old2018 or later model year collection vehicles for Garbage, Recyclables, and Compostables 20 collection services performed under this contract under this Contract, provided that small vehicles used 21 to service limited-access areas may be diesel powered. Back-up vehicles used fewer than thirty (30) 22 operating days a calendar year shall not be subject to the age that apply to regularly-used vehicles, but 23 shall be presentable, shall be in safe working order, and shall be subject to all other conditions of this 24 section. The accumulated annual use of individual back-up vehicles shall be reported in the Contractor’s 25 monthly report. 26 27 Vehicles used in the performance of this Contract shall be of sufficient size and dimension to provide 28 service to all Customers, regardless of location. In some cases, this may mean that a small collection 29 vehicle, capable of servicing narrow and/or tight locations must be used, and the Contractor shall make 30 such vehicles available to ensure smooth and effective collection services throughout the Service Area. 31 Vehicles shall have a switchable placard that clearly indicates the material stream currently being 32 collected by that vehicle. The colors, trim scheme, and design to be used by the Contractor on the 33 switchable placards shall be subject to the prior written approval of the City. The lack of switchable 34 placards on collection vehicles shall be cause for performance fees as described in Section 6.1. 35 36 Vehicles shall be maintained in a clean and sanitary manner, and shall be thoroughly washed at least 37 once each week. All collection equipment shall have appropriate safety markings, including all highway 38 lighting, flashing and warning lights, clearance lights, and warning flags, all in accordance with current 39 statutes, rules and regulations. Equipment shall be maintained in good condition at all times. Vehicles 40 shall be repaired and/or have damaged areas repainted upon showing rust on the body or chassis or at 41 the request of the City. All parts and systems of the collection vehicles shall operate properly and be 42 maintained in a condition compliant with all federal, state, and local safety requirements and be in a 43 condition satisfactory to the City. All vehicles shall be equipped with variable tone or proximity activated 44 reverse movement back-up alarms. 45 46


The Contractor shall maintain collection vehicles and Containers to ensure that no liquid wastes (e.g., 1 Garbage or Compostables leachate) or oils (e.g., lubricating, hydraulic, or fuel) are discharged to 2 Customer premises or streets. All collection and route supervisor vehicles used by the Contractor shall 3 be equipped with a minimum 10-gallon capacity spill kit .sufficient in size to contain a complete spill 4 from the largest tank on the vehicle. Any equipment not meeting these standards shall not be used 5 within the Service Area until repairs are made. Clean-up of any discharge of liquid wastes or oils that 6 may occur from Contractor’s vehicles or Containers prior to them being removed from service shall be 7 initiated within three (3) hours of being noticed/notified by route staff, customers, or the City, and shall 8 be remediated by the Contractor at its sole expense. Such clean-up or removal shall be documented 9 with pictures, and notice of such clean-up or removal shall be provided to the City in writing. The 10 Contractor shall immediately notify the City-designated spill reporting telephone number of any spills 11 that enter drainages within four hours. Failure by the Contractor to clean-up or remove the discharge in 12 a timely fashion to the satisfaction of the City shall be cause for performance fees, as described in 13 Section 6.1. The Contractor shall notify the City and the Customer of any leakage from non-Contractor-14 owned Containers immediately within four hours of observation so that those spills may be addressed in 15 a timely manner. 16 17 No advertising shall be allowed on Contractor vehicles other than the Contractor’s name, logo, customer 18 service telephone number, and website address, unless otherwise previously approved in writing by the 19 City. Special promotional messages may be permitted by the City; provided they are either painted 20 directly on vehicles or on special placards attached to vehicles. The City’s approval shall be in writing 21 and solely within the City’s discretion. Vehicle inventory numbers shall be displayed on the rear panel of 22 the vehicle body and shall show, in lettering at least 6” high, an abbreviated truck designation number 23 specific to the City. For example, N-1, N-2, etc. limited to a two digit letter and numeral to aid in rapid 24 identification of vehicles to allow more precise reporting and correction of any unsatisfactory condition 25 related to specific vehicles. The City may approve a different numbering system proposed by the 26 Contractor provided that it meets the objective of rapid and memorable truck identification. The City 27 will provide the Contractor with policy timelines for reporting spills versus driving complaints to the City. 28 Spills should be reported immediately within four hours to the City as directed by the City’s reporting 29 policies, which will be provided to the Contractor by the City. 30 31 All Contractor route, service, and supervisory vehicles shall be equipped with properly licensed two-way 32 communication equipment. The Contractor shall maintain a base station or have equipment capable of 33 reaching all collection areas. Collection vehicles shall also be equipped with back-up cameras, as well as 34 route-recording cameras integrated with their on-board route management system. 35 36 All collection vehicles shall be equipped with global positioning systems (GPS), as well as an on-board 37 computer and data tracking system to track route progress and log non-set-outs, extras, and other 38 service issues. The system shall incorporate photo documentation of route exceptions. The Contractor’s 39 drivers shall be fully trained and required to use these systems. The resulting data shall be uploaded to 40 the Contractor’s Customer service database no less than daily to allow Customer service personnel to be 41 fully apprised of route progress, and be able to address misses and other Customer inquiries in near 42 real-time. 43 44 4.1.14 Container Requirements and Ownership 45 46


Contractor Garbage fees included in Exhibit B include all costs of the associated Containers unless 1 Container rental for a particular service is specifically listed in Exhibit B, such as rent for Drop-box 2 Containers. 3 4 Single-Family Residence, Multifamily Complex, and Commercial Customers must use Contractor-5 provided Containers for their initial Container of Garbage collection service, with the exception of 6 compacting Drop-box Containers, which may be Customer-owned or –leased from other parties. Plastic 7 bags or Garbage Cans may be used for excess volumes of Garbage, but not as a Customer’s primary 8 container. 9 10 In the event the Customer uses a Garbage Can for Extra Units, the Contractor shall handle the Customer-11 owned Garbage Container in such a way as to prevent undue damage. The Contractor shall be 12 responsible for unnecessary or unreasonable damage to Customer-owned Containers. 13 14 All Contractor-provided Containers shall be permanently, clearly, and prominently screened, molded-in, 15 molded-on, imprinted, or otherwise labeled in a fashion that any reasonable person can readily 16 determine the size capacity and material preparation requirements of the Container. Contractor-17 provided Containers shall not be screened, molded-in, molded-on, imprinted, or otherwise permanently 18 labeled with the Contractor’s logo or company name. 19 20 4.1.14.1 Garbage, Recyclables, and Compostables Carts and Food Mini-cans 21 22 The Contractor shall provide a 20-, 35-, 64-, and 96-gallon Garbage Carts for the respective level of 23 Garbage collection, and 35-, 64-, and 96-gallon Carts for Recyclables collection, and 20-, 35-, 64-, and 96-24 gallon Compostables Carts for the respective level of Recyclables or Compostables collection. All Carts 25 used at the start of this Contract shall be new. Food Mini-cans shall be provide in lieu of a Compostables 26 Cart upon Customer request. All Carts shall be manufactured from a minimum of fifteen percent (15%) 27 post-consumer recycled plastic, with a lid that will accommodate a label. Carts shall be provided to 28 requesting Customers within seven (7) days of the Customer’s initial request. All Carts must have 29 materials preparation instructions and telephone and website contact information printed on a sticker 30 on the lid. 31 32 All Contractor-provided Carts and Food Mini-cans shall be maintained by the Contractor in good 33 condition for material storage and handling; contain no jagged edges or holes; contain wheels or rollers 34 for movement and be equipped with an anti-skid device or sufficient surface area on the bottom of the 35 container to prevent unwanted movement. Carts and Food Mini-cans shall contain instructions for 36 proper use, including any Customer actions that would void manufacture warranties (such as placement 37 of hot ashes in the container causing the container to melt), and procedures to follow to minimize 38 potential fire problems. 39 40 Collection crews shall note damaged hinges, holes, poorly functioning wheels, and other similar repair 41 needs for Contractor-provided Carts (including those for Garbage, Recyclables, and Compostables) and 42 Food Mini-cans, and forward written or electronic repair notices that same day to the Contractor’s 43 service personnel. Repairs shall then be made within seven (7) days at the Contractor’s expense. Any 44 Cart or Food Mini-can that is damaged or missing on account of an accident, collection truck mechanical 45 error, act of nature or the elements, fire, or theft or vandalism by a third party shall be replaced not 46 later than three (3) business days after notice from the Customer or the City. In the event that a Micro-47


can, Cart or Food Mini-can is inadvertently lost into a collection vehicle during collection due to 1 mechanical or operator error, Customers shall be notified on the same day via a door knocker tag of the 2 incident and a replacement cart shall be provided within twenty-four hours of the loss. Replacement 3 Carts and Food Mini-cans may be used and reconditioned, but shall be presentable and cleaned before 4 delivered to the Customer. Unusable Containers shall be cleaned (if necessary) and recycled to the 5 extent possible. 6 7 In the event that a Customer repeatedly damages a Container or requests more than one replacement 8 Container during the term of the Contract due to negligence or intentional misuse, the Contractor shall 9 forward in writing the Customer’s name and address to the City. The City shall then attempt to resolve 10 the problem. In the event that the problem continues, the Contractor may charge the Customer a City-11 approved Container repair or replacement fee and/or discontinue service to that Customer, provided 12 the City provides previous written approval. 13 14 4.1.14.2 Detachable Containers and Drop-box Containers 15 16 The Contractor shall furnish and install 1-, 1.5-, 2-, 3-, 4-, 6-, and 8-cubic yard Detachable Containers, 17 and 10-, 20-, 30-, and 40-cubic yard un-compacted Drop-box Containers to any Customer who requires 18 their use for storage and collection of Garbage or Recyclables within three (3) days of the Customer’s 19 request. Containers shall be located on the premises in compliance with any related ordinance, and a 20 manner satisfactory to the Customer and for collection by the Contractor. 21 22 The Contractor shall charge rent for temporary and permanent Drop-box Container service in 23 accordance with Exhibit B. The Contractor may not charge Customers any additional fees, charges, rates, 24 or any expenses in connection with Drop-box Container service other than the applicable fees listed in 25 Exhibit B. 26 27 Detachable Containers shall be watertight and equipped with tight-fitting metal or plastic covers; have 28 four (4) wheels for Containers 4-cubic yards and under unless site-specific concerns dictate the use of a 29 non-wheeled Container; be in good condition for Garbage or Recyclables storage and handling; be safe 30 for the intended use; and, have no leaks, jagged edges, or holes. Drop-box Containers shall be all-metal, 31 and if requested by a Customer, equipped with a tight-fitting screened or solid cover operated by a 32 winch in good repair. 33 34 Detachable Containers shall be cleaned, reconditioned, and repainted (if necessary), at the Contractor’s 35 expense before being supplied to a Customer who had not used it earlier. The Contractor shall provide a 36 fee-based On-call Container cleaning service to Customers. 37 38 As between the Contractor and the City, all Containers on Customers’ premises are at the Contractor’s 39 risk and not the City’s. The Contractor shall repair or replace within one business day twenty-four (24) 40 hours any Container that was supplied by or taken over by the Contractor and was in use if the City Code 41 Compliance Inspector, King County Health Department inspector, or other agent having safety or health 42 jurisdiction determines that the Container fails to comply with reasonable standards or constitutes a 43 health or safety hazard. The Contractor shall place Detachable Containers in areas mutually agreed upon 44 by the Contractor and Customer with the least slope and best vehicle access possible. For Customers 45 that must stage their Detachable Containers on Public Streets or on significantly sloped hills, the 46 Contractor shall make a good faith effort to work with the Customer to ensure that Detachable 47


Containers are not left unattended in potentially problematic staging areas and are sufficiently 1 restrained such that the Container may not roll and cause harm to persons or property. The Contractor 2 may require a Customer to attend to the Containers immediately prior to and after collection. Any 3 disputes arising between the Contractor and a Customer as to what constitutes a “significantly sloped 4 hill” or a “safety hazard” shall be submitted in writing to the City, and the City’s decision shall be final. 5 Containers shall be replaced after emptying in the same location as found, with the lid closed. 6 7 Customer containers shall be supplied by the Contractor, with the exception of compactors. Customers 8 may elect to own or secure secondary Containers from other sources, and shall not be subject to 9 discrimination by the Contractor in collection services on that account, provided that such Containers 10 (including Carts) are compatible with the Contractor’s collection equipment. However, Containers 11 owned or secured by Customers must be properly labeled with Contractor-provided stickers to be 12 eligible for collection. The Contractor is not required to service Customer Containers that are not 13 compatible with the Contractor’s equipment. 14 15 In the event that a Customer damages a Detachable Container or Drop-box Container due to negligence 16 or intentional misuse, the Contractor may charge the Customer a City-approved Container repair or 17 replacement fee and/or discontinue service to that Customer, provided the City provides previous 18 written approval. 19 20 4.1.14.3 Ownership 21 22 At the end of the Contract Term or in the event the Contract is terminated for any reason, all Containers 23 used by Contractor to provide Contract Services, shall, at the option of the City, revert to City ownership 24 without further compensation to the Contractor. Temporary Containers, Compactor Drop-boxes leased 25 to Customers outside of this Contract, and all Containers held in reserve at the Contractor’s yard and not 26 actively in service at a Customer location are excluded from this provision. 27 28 The City may elect to assign this potential ownership of said Containers to a third-party, and shall 29 provide written notice to the Contractor. Any remaining warranties associated with the Containers 30 described herein shall be transferred to the City or the City’s assignee. 31 32 The City in advance accepts all such Containers in their “as-is, where-is” condition and without any 33 express or implied warranty by the Contractor of any kind, including but not limited to any warranty of 34 fitness for any particular purpose or any warranty of merchantability. As between the City and the 35 Contractor, the City assumes all risks of loss or liability on account of the City’s exercising of its rights 36 under this Section 4.1.14.3 or any use made of any such Containers after they become the property of 37 the City or assignee of the City. 38 39 4.1.14.4 Container Colors and Labeling 40 41 Contractor-provided Carts and Detachable Containers for Recyclables shall be blue, Compostables Carts 42 shall be green, and Carts and Detachable Containers for Garbage shall be grey. Specific Container colors 43 shall be approved in writing by the City prior to the Contractor’s order of new Containers. 44 45 All Containers shall be labeled with instructional information and contact information that include both 46 a customer service phone number and website address. All labels shall be approved by the City prior to 47


ordering by the Contractor. Location of the label on Containers shall be subject to the City’s prior 1 approval. Labels shall be redone when faded, damaged, or upon the City or customer request. Should 2 any changes be made to the Garbage, Recycling, or Compostables collection program, the Contractor at 3 their sole expense shall reproduce and reaffix labels on all Containers. 4 5 All Detachable Containers and Drop-box Containers to be used for Garbage or Recyclables collection 6 shall have materials preparation instructions and telephone/contact information, including both a 7 customer service phone number and a website address, printed on a sticker, and subject to the prior 8 written approval of the City. All Detachable Containers and Drop-box Containers to be used for Garbage 9 or Recyclables shall have a sticker affixed that states: “Leaky dumpster? Damaged Lid?” and provides a 10 phone number to call for repair or replacement. Information shall be printed in a size that is easily read 11 by the users, on durable UV-resistant label stock squarely affixed to each Container. All labels shall be 12 approved in writing by the City prior to ordering by the Contractor. Location of the label on the 13 Containers shall be subject to the City’s prior written approval. 14 15 Containers used for the collection of Recyclables from Multifamily Complex and Commercial Customers 16 shall be relabeled by the Contractor if labels fade or are unreadable, or upon City’s request for any 17 individual Container. 18 19 4.1.14.5 Container Weights 20 21 The Contractor shall not be required to lift or remove materials from any Container exceeding the safe 22 working capacity of the Container, lifting mechanism or collection vehicle. For Drop-box Containers, the 23 combined weight of the Drop-Box and contents must not cause the collection vehicle to exceed legal 24 road weight limits. 25 26 Any loose Extra Units that are not place in a Container and must be manually loaded shall be limited to 27 sixty fifty (560) pounds per bag or bundle unless otherwise authorized by the Contractor. 28 29 4.1.14.6 Container Removal Upon City or Customer Request 30 31 The Contractor shall remove all Containers automatically upon service cancellation within seven (7) days 32 of the cancellation or upon three (3) days of specific Customer, property manager, property owner, or 33 the City’s request. The contents of removed Containers shall be managed as if they were collected on a 34 regular route (e.g. Recyclables shall be recycled, Compostables shall be delivered for composting). The 35 disposal or recycling of materials accumulating in the Contractor’s Container at the former Customer’s 36 location after the final Customer-paid collection shall be at the Contractor’s, not Customer’s cost. Failure 37 to remove Containers within the specified timeline shall be subject to the same performance fees as 38 delayed Container delivery for that Customer sector. 39 40 4.1.15 Inventory of Vehicles and Facilities 41 42 The Contractor shall provide to the City, on the Date of Commencement of Service of this Contract, a 43 complete initial inventory of the vehicles and facilities to be used in the performance of this Contract. 44 The inventory shall include each vehicle (including chassis model year, type of body, material collected, 45 capacity, model, and vehicle identification number) and each facility to be used in performance of this 46 Contract (including address and purpose of the facility). The Contractor may change vehicles and 47


facilities from time to time, and shall include the revised inventory in the monthly report provided for in 1 Section 4.3.4.1. The Contractor shall maintain vehicles and facilities levels during the performance of this 2 Contract at least equal to those levels described in the initial inventory. The City reserves the right to 3 request maintenance history logs for vehicles or equipment during the performance of this Contract. 4 5 4.1.16 Spillage 6 7 All loads collected by the Contractor shall be completely contained in collection vehicles at all times, 8 except when material is actually being loaded. Hoppers on all collection vehicles shall be cleared 9 frequently to prevent the occurrence of unnecessary blowing, leakage, or spillage. 10 11 Any leakage or spillage of materials upon the road surface or exposed appurtenances that occurs during 12 collection shall be immediately cleaned up or removed by the Contractor within four hours of 13 occurrence at its sole expense. Any associated spillage or leakage entering the City’s municipal storm 14 system shall be immediately cleaned promptly by Contractor staff, to the extent possible. The 15 Contractor shall be responsible for all City’s costs in the event that City staff or contractors are required 16 for spill containment or cleaning due to the Contractor’s action. The Contractor shall document the fluid 17 leakage, including taking pictures before and after clean-up or removal, and shall provide this 18 documentation to the City. Leakage or spillage not immediately cleaned up or removed by the 19 Contractor within the required time frame shall be cause for performance fees, as described in Section 20 6.1 and may be subject to fines and penalties pursuant to City municipal code. Should a leakage or 21 spillage occur during collection, the Contractor shall notify the designated City contact. Contractor 22 expressly acknowledges it is solely responsible for any local, state, or federal violations, which may 23 result from said leakage or spillage. 24 25 Any leakage or spillage of materials that occurs during collection that is reported by Customers or the 26 City shall be immediately cleaned up or removed by the Contractor within four hours at its sole expense. 27 The Contractor shall document the reported leak or spillage, who reported the incident, and measures 28 made to correct the incident and report this information via e-mail to the Contract administrator within 29 three (3) hours. Failure of the Contractor to comply shall be cause for performance fees, as described in 30 Section 6.1. 31 32 Any Contractor-supplied Container determined by the City to be leaking shall be replaced by the 33 Contractor within one business day twenty-four (24) hours of notification from the City. Failure of the 34 Contractor to comply shall be cause for performance fees, as described in Section 6.1. 35 36 4.1.17 Pilot Programs 37 38 The City may wish to test and/or implement one or more new services or developments in waste stream 39 segregation, materials processing, or collection technology at some point during the term of this 40 Contract. The City shall notify the Contractor in writing at least ninety (90) days in advance of its 41 intention to implement a pilot program or of its intentions to utilize a new technology system on a 42 partial or city-wide basis, or as negotiated between the City and Contractor. The costs (or savings) 43 accrued by city-initiated pilot programs shall be negotiated prior to implementation. If the City deems 44 the pilot a success, and desires to incorporate the service or development represented in the pilot 45 program in the terms of this Contract, the City and Contractor each agrees to negotiate in good faith and 46


in accordance with Section 8.14 to include the provisions of the pilot program into this Contract, 1 including any costs or savings to be accrued. 2 3 Contractor-initiated pilot programs shall require prior written notification to and written approval by the 4 City. Contractor-initiated pilot programs shall be performed at no additional cost to the City or the 5 Contractor’s Customers; however, costs (or savings) accrued may be subject to negotiations prior to 6 implementation at the City’s request. Results of any Contractor-initiated pilot program shall be reported 7 to the City in the monthly reports described in Section 4.3.4.1. The Contractor shall not be required to 8 test or implement any pilot program, new technology, service or development unless the terms and 9 conditions thereof (including any savings or additional compensation to Contractor) have been mutually 10 agreed in writing by the City and Contractor. 11 12 4.1.18 Disruption Due to Construction 13 14 The City reserves the right to construct any improvement or to permit any such construction in any 15 Public Street in such manner as the City may direct, which may have the effect for a time of preventing 16 the Contractor from traveling the accustomed route or routes for collection. However, the Contractor 17 and the City shall develop a reasonable workaround to enable the Contractor to continue to collect 18 Garbage, Recyclables, and Compostables to the nearest extent possible as though no interference 19 existed upon the streets or alleys normally traversed. This shall be done at no extra expense to the City 20 or the Contractor’s Customers. 21 22 4.1.19 Contractor Planning and Performance Under Labor Disruption 23 24 No later than ninety (90) days prior to the expiration of any labor agreement associated with services 25 performed under this Contract, the Contractor shall provide the City in writing with its planned response 26 to labor actions that could compromise the Contractor’s performance under this Contract. The 27 Contractor-prepared Strike Contingency Plan shall address in detail: 28 29

1. The Contractor’s specific staffing plan to cover Contract services, including identification of staff 30 resources moved from out-of-area operations and the use of local management staff to provide 31 basic services. The staffing plan shall be sufficient to provide recovery of full operations within 32 one week following the initiation of the disruption. 33 34

2. Contingency training plans to ensure that replacement and management staff operating routes 35 are able to continue to collect route data and follow collection and material delivery procedures 36 for all material streams collected from Customers. 37

38 3. Identification of temporary Drop-box Containers or staffed packer truck locations for all material 39

streams. For all sites identified in the Contractor-prepared Strike Contingency Plan, the 40 Contractor shall list the property owner/lessee’s contact information and the date on which 41 permission for temporary use was received. The City shall review these locations, after which 42 the City shall approve or deny in writing use of specific locations. 43 44

4. A recovery plan to address how materials will be collected in the event of a short-notice 45 disruption that does not allow the Contractor to collect all materials on their regular schedule 46 (e.g. a wildcat strike) within one week following the initiation of the disruption. 47


1 The Contractor shall keep the City informed of the status of active labor negotiations on a daily basis, 2 specifically during the period surrounding the end of employee contracts with Contractor employees. In 3 the event that labor disruptions of any kind cause reductions in service delivery, the Contractor shall 4 inform the City within three (3) hours by phone and e-mail of the nature and scope of the disruption, as 5 well as the Contractor’s immediate plans to activate some or its entire Strike Contingency Plan. At the 6 close of each service day during a Labor Disruption, the Contractor shall report to the City via e-mail the 7 areas (per a detailed map) and customer counts of served and un-served customers by material stream 8 and service sector. 9 10 The Contractor shall provide make-up collection on Saturday for any Single-family Garbage and 11 Recyclables collection Customers missed during the preceding week. 12 13 In the event that a disruption lasts more than one full Single-family Residential collection cycle, the 14 Contractor with approval of the City shall provide Drop-box Containers or staffed packer trucks for 15 Customer use for each affected material stream in approved locations throughout the affected route 16 areas, as well as the collection of reasonable quantities of accumulated materials at no additional charge 17 on the next regular collection cycle for each material. 18 19 If there is no make-up collection, the Contractor shall provide a credit for all service missed equal to the 20 Customers’ pro-rata regular rate minus the disposal component on the Customer’s next regular invoice. 21 22 The City and Contractor agree that the following special compensation and performance fees reflect the 23 best estimate of the impacts of the Labor Disruption to Customers and the City. The Contractor shall 24 pay the City monthly by the tenth day of the following month: 25 26

1. A cost reimbursement amount of one thousand dollar ($1,000.) for each day of Labor Disruption 27 to reimburse staffing and other costs for managing the impacts of the Labor Disruption; 28

2. A performance fee of two thousand five hundred dollars ($2,500.) a day for each day of Labor 29 Disruption from the 1st day to the 7th day of the Labor Disruption; 30

3. A performance fee of five thousand dollars ($5,000.) a day for each day of Labor Disruption from 31 the 8th day to 14th day of the Labor Disruption; and 32

4. A performance fee of ten thousand dollars ($10,000.) a day for each day of Labor Disruption for 33 every day beyond the 14th day of Labor Disruption. 34

35 The performance fees listed as 2 through 4, above, are intended to apply to any complete work 36 stoppage where alternative but substantially equivalent service by non-striking employees is not 37 provided by the Contractor or otherwise. In the event substantially equivalent service is provided by the 38 Contractor through the employment of non-striking employees at any point during the course of the 39 labor disruption, the Contractor is entitled to reduce the amount of the performance fees that 40 otherwise would be due on a pro-rata basis, based on the percentage of Contract service provided to 41 Customer provided on that day. Given the nature of the failure arising from labor disruptions, the 42 Contractor shall not be allowed any cure period opportunity or rectification process; provided, however, 43 that the City may elect to receive the equivalent value of additional services, as negotiated, in lieu of 44 these specific performance fees. 45 46


The Contractor’s failure to comply with the Contractor-prepared Strike Contingency Plan of this section 1 shall be subject to a special fee of two one thousand five thousand dollars ($2,51,000) per day for its 2 non-compliance during the Labor Disruption event. This special fee is separate compensation to the City 3 for the Contractor’s failure to plan and execute the provisions of this section. The special fee shall be 4 paid to the City within thirty (30) days of the Contractor’s receipt of the City’s invoice. 5 6 Fees paid by the Contractor under the terms of this Section 4.1.19 are not regular performance fees for 7 the purposes of Section 6 and shall not be counted in the cumulative performance fee default threshold 8 referenced in Section 6.2 (6). 9 10 Any Strike Contingency Plan or other information communicated by the Contractor to the City pursuant 11 to this section shall be maintained in confidence by the City to the maximum permissible extent under 12 applicable law. 13 14 4.1.20 Site Planning and Building Design Review 15 16 The Contractor shall, upon request and without additional cost, make available site planning assistance 17 to either the City and/or property owners. The site planning assistance shall be available for all new 18 construction or remodeling of buildings and structures within the Service Area, and shall address the 19 design and planning of Garbage, Recyclables and Compostables removal areas and their location upon 20 the site of the proposed construction or remodeling project. Contractor planning assistance for 21 optimizing loading docks and other areas shall also be available for existing building managers when 22 realigning Garbage, Recyclables and Compostables services. 23 24 4.1.21 Safeguarding Public and Private Facilities 25 26 Contractor shall protect all public and private improvements, facilities, and utilities whether located on 27 public or private property, including streets curbs, signs/posts, light poles, planting strips, and trees 28 curbs. If such improvements, facilities, utilities, or curbs streets are damaged as a result of Contractor’s 29 operations, Contractor shall notify the City immediately in writing of all damage within four hours, and 30 Contractor shall repair or replace the same or pay the City for the costs of repairs, including overhead 31 and administrative costs. If the damage creates an immediate public safety issue that requires an 32 immediate response, Contractor shall, along with notifying the City immediately in writing, call the City 33 to inform them of such matter. If Contractor fails to do so promptly, as determined by the City, the City 34 shall cause repairs or replacement to be made, and the cost, including overhead and administrative 35 costs, of doing so shall be paid by the Contractor. The Contractor shall be liable for any damage to 36 property or person caused by the actions of Contractor, and the Contractor shall indemnify and hold the 37 City harmless for any such damage or legal implications from said actions. 38 39 4.1.22 Transition and Implementation of Contract 40 41 The Contractor shall develop, with the City’s input and prior written approval, and submit to the City no 42 later than thirty (30) days after the Date of Execution of this Contract, a Transition and Implementation 43 Plan for introducing the new and revised services to the different Customer sectors (i.e., Single-family, 44 Multifamily Complex, and Commercial Customers), and detailing a specific timeline as to when different 45 activities and events will occur, including details of Container delivery, how different events impact 46 other events in the timeline and the process to be used to ensure that implementation occurs with no 47


disruption. The Transition and Implementation Plan shall cover the entire period following the Date of 1 Execution of this Contract, up through and including the six (6) month period following the Date of 2 Commencement of Service. The Contractor shall separately describe in detail what is involved with each 3 of the activities and events listed in the timeline. The Transition and Implementation Plan shall 4 specifically address how the Contractor intends to proceed in the event of inclement weather and what 5 contingency plans will be in place to accelerate implementation if Container delivery or other planned 6 activities are impacted by inclement weather. 7 8 The Contractor shall be responsible for funding all the design, development, printing, sorting, mail prep, 9 delivery, and mailing costs, including the cost of the postage-prepaid mail-back cards and any costs 10 associated with the website ordering services, and of all new and continuing service and educational 11 materials described above and needed to comply with the Transition and Implementation Plan outreach 12 described in this section of the Contract. 13 14 Any additional promotional, educational, informational, and outreach materials provided by the 15 Contractor to Customers in connection with the initial transition and implementation of the Contract 16 shall be designed, developed, printed, and delivered by the Contractor unless otherwise directed by the 17 City, at the Contractor’s cost, and subject to the City’s prior review and written approval and the City’s 18 final approval as to method of delivery. The City will be provided a minimum of two (2) weeks to review 19 any of the materials included in the Contractor’s Transition and Implementation Plan schedule to allow 20 sufficient time for the City prior review and written approval. 21 22 4.1.23 Hiring Preference 23 24 For initial hiring under this Contract, the Contractor and subcontractors shall give hiring preference to 25 any Garbage, Recyclables, or Compostables (including Yard Debris) collection workers who serviced City 26 routes for the previous hauler at the time that the previous collection contract expired and have been 27 displaced as a result of the City awarding this Contract, provided that such workers are fully qualified 28 and meet the Contractor’s standards for employment. Nothing in this section is intended to create any 29 third party rights under this Contract. 30 31 Upon the hiring of a displaced collection worker represented by Teamsters Local 117 or 174, the 32 Contractor shall be required to keep the displaced worker whole in regard to the workers’ pay and 33 benefit accruals earned as of the date of displacement. To the extent application of the Contractor’s 34 collective bargaining agreement would otherwise result in a reduction in pay or benefits, the existing 35 pay/benefit accrual will be maintained at the current rate until such time as the applicable bargaining 36 agreement provision(s) provides for an increase. Any displaced worker must be reimbursed by the 37 company for any required COBRA payment made in order to retain health care coverage during the time 38 period between displacement and when the worker would become eligible for such benefits under the 39 Contractor’s bargaining agreement. 40 41 4.1.24 Performance Review 42 43 The City may, at its option, and upon reasonable notice to the Contractor, conduct a review of the 44 Contractor’s performance under this Contract. If conducted, the performance review shall include, but is 45 not limited to, a review of the Contractor’s performance relative to requirements and standards 46 established in this Contract, including Customer service standards. The Contractor agrees to fully 47


cooperate with the performance review and work with City staff and consultants to ensure a timely and 1 complete review process. 2 3 The results of the performance review shall be presented to the Contractor within thirty (30) days of 4 completion. Should the City determine that the Contractor fails to meet the Contract performance 5 requirements and standards, the City shall give the Contractor written notice of all deficiencies. The 6 Contractor shall have sixty (60) days from its receipt of notice to correct deficiencies to the City’s 7 satisfaction. If the Contractor fails to correct deficiencies within sixty (60) days, the City may allow the 8 Contractor additional time to comply, accept other remedies for the service failure or proceed with the 9 contract default process pursuant to Section 6.2 of this Contract, at the City’s sole option. 10 11 The costs of the development and implementation of any action plan required under this Section 4.1.24 12 or Section 6.1 for the purpose of addressing failures on the part of the Contractor to perform in 13 accordance with the terms and conditions of this Contract shall be paid for solely by the Contractor, and 14 the costs of developing or implementing such action plan may not be passed on to Customers or the 15 City, or included in rates or fees charged Customers. 16 17 The City may, at its option, and upon reasonable notice to the Contractor, design and implement an 18 alternative annual Contract compliance monitoring program with or without Contractor performance 19 incentives. If such a program is desired by the City, the City and Contractor agree to negotiate in good 20 faith the monitoring methodologies used to ensure accurate and unbiased sampling of performance 21 data. The City shall bear the costs of City staff, City-retained consultants and performance incentives (if 22 used) and the Contractor shall bear the costs of Contractor staff and route costs to perform the 23 monitoring. 24 25 4.1.25 Continual Monitoring and Evaluation of Operations 26 27 The Contractor’s supervisory and management staff shall be available to meet with the City at either the 28 Contractor’s office or Mercer Island City Hall, at the City’s option, on a weekly basis during the period 29 three months before and two months after the Date of Commencement of Service and monthly 30 throughout the term of the Contract to discuss operational and Contract issues. 31 32 The Contractor shall continually monitor and evaluate all operations to ensure that compliance with the 33 provisions of this Contract is maintained. 34 35 The City may periodically monitor collection system parameters such as participation, Container 36 condition, contents weights, and waste composition. The Contractor shall assist and fully cooperate with 37 the City by coordinating the Contractor’s operations with the City’s periodic monitoring to minimize 38 inconvenience to Customers, the City, and the Contractor. The Contractor also shall provide full access 39 to equipment, processing facilities, route and Customer service data, safety records, and other 40 applicable information. The City’s review of Contractor activities and records shall occur during normal 41 office hours and shall be supervised by the Contractor’s staff. 42 43 4.1.26 Collection/Disposal Restrictions 44 45 Unless otherwise directed by the City, all Garbage collected under this Contract, as well as residues from 46 processing Recyclables and Compostables (to the extent required for the City to comply with its Solid 47


Waste Interlocal Agreement with King County), shall be delivered to the King County Disposal System in 1 compliance with all King County rules regarding such disposal. 2 3 Garbage containing obvious amounts of Yard Debris shall not knowingly be collected from Customers 4 and instead prominently tagged with a written notice informing the Customer that King County does not 5 accept Yard Debris mixed with Garbage for collection. Contractor’s awareness, knowing, or intentional 6 collection of Garbage mixed with visible Yard Debris shall be grounds for performance fees as provided 7 in Section 6.1. Contractor shall be liable and legally responsible for the Contractor’s awareness, knowing, 8 or intentional collection of Garbage mixed with visible Yard Debris. The Contractor shall indemnify and 9 hold the City harmless for any damage or liability resulting from said collection. 10 11 The Contractor shall not knowingly or as a result of negligence collect or dispose of Unacceptable Waste 12 or other hazardous materials that are either restricted from disposal or would pose a danger to 13 collection crews. If materials are rejected for this reason, the Contractor shall leave a written notice in a 14 prominent location with the rejected materials listing why they were not collected and providing the 15 Customer with a contact for further information about proper disposal options for such materials. 16 17 Title to and liability for any Unacceptable Wastes that are included with any materials collected under 18 this Contract by Contractor despite the City’s and Contractor’s attempts to prevent the inclusion of such 19 materials shall not pass to Contractor, but shall remain with the party from whom such Unacceptable 20 Waste or any such other materials or substances is received. 21 22 Garbage collected by the Contractor may be processed by the Contractor to recover recyclable material; 23 provided, however, that the residual is appropriately disposed of within the King County Disposal 24 System. The processing of such recyclable material shall only be undertaken with the prior written 25 approval of King County and the City and in accordance with the Solid Waste Interlocal Agreement 26 between King County and the City of Mercer Island. Contractor in all such instances shall charge 27 Customers no more than the equivalent Garbage disposal fee within the King County Disposal System or 28 such other disposal fee as the City reasonably directs the Contractor to charge. In addition, hauling fees 29 charged by the Contractor in such instances shall be no higher than those provided for in Exhibit B. 30 31 4.1.27 Emergency Response 32 33 Contractor shall provide the City with the use of Contractor’s labor and equipment for assist the 34 Cityance in the event of a disaster or emergency declaration. Contractor services shall be provided as 35 soon as practical immediately upon City directions and paid at the Contract rates in Exhibit B. 36 37 Contractor shall keep full and complete records and documentation of all costs incurred in connection 38 with disaster or emergency response, and include such information in the monthly and annual reports 39 required under Section 4.3.4. Contractor shall maintain such records and documentation in accordance 40 with the City’s prior written approval and any standards established by the Federal Emergency 41 Management Agency, and at the City’s request, shall assist the City in developing any reports or 42 applications necessary to seek federal assistance during or after a federally-declared disaster. 43 44


4.2 Collection Services 1 2 4.2.1 Single-Family Residence Garbage Collection 3 4 4.2.1.1 Subject Materials 5 6 The Contractor shall collect all Garbage placed at Curbside for disposal by Single-Family Residence 7 Customers in, and properly prepared and contained materials adjacent to Garbage Cans, bags, and 8 Garbage Carts. 9 10 4.2.1.2 Containers 11 12 The Contractor shall provide collection Containers to Customers at no additional charge as part of the 13 Customer-chosen service level. Micro-cans and Garbage Carts shall be delivered by the Contractor to 14 Single-Family Residence Customers within seven (7) days of the Customer’s initial request. Each 15 Customer’s initial Container must be Contractor-provided Container, provided that Garbage in excess of 16 the Customer’s initial Container may be bundled or placed in a Customer-owned Garbage Can or plastic 17 bag. 18 19 4.2.1.3 Specific Collection Requirements 20 21 The Contractor shall offer regular weekly collection of the following service levels: 22 23

1. One 20-gallon Garbage Cart; 24 2. One 35-gallon Garbage Cart; 25 3. One 64-gallon Garbage Cart; and 26 4. One 96-gallon Garbage Cart. 27

28 The Contract shall also offer a service of once per month collection of non-putrescible waste in a 35-29 gallon Cart. 30 31 Carry-out charges shall be assessed only to those Customers who choose to have the Contractor move 32 Containers to reach the collection vehicle at its nearest point of access. Garbage in excess of Container 33 capacity or the subscribed service level shall be collected and properly charged as Extra Units to the 34 Customer; with the exception of excess Garbage collection otherwise authorized under this Contract at 35 no charge to the Customer. The Contractor shall maintain route lists in sufficient detail to allow accurate 36 recording and charging of all Extra Units. Customers shall be allowed to specify that no Extra Units be 37 collected without prior Customer notification, which shall be provided by the Single-Family Residence 38 Customer no less than tweone business day nty-four (24) hours prior to that Customer’s regular 39 collection. Sunken cans shall be collected and assessed the sunken can surcharge listed in Exhibit B. 40 41 Collections shall be made from Single-Family Residences on a regular schedule on the same day and as 42 close to a consistent time as possible. The Contractor’s crews shall make collections in an orderly and 43 quiet manner, and shall return all Containers, in an upright position, with lids closed and attached, to 44 their original set out location. 45 46


Extra charges may be assessed for materials loaded so as to lift the Garbage Can, or Garbage Cart lid in 1 excess of six (6) inches from the normally closed position. The Contractor may charge for an overweight 2 Container at the Extra Unit rate, provided that the Container weight is documented in writing, and the 3 Customer agrees to pay for special handling. Otherwise, an overweight Container shall be left at the 4 Curb and tagged with written notification as to why it was not collected. Customers may specify to the 5 Contractor that they may not be charged for overweight or extra Containers, in which case any such 6 Containers shall be left at the Curb uncollected and tagged with written notification as to why it was not 7 collected. 8 9 10 11 4.2.2 Single-Family Residence Recyclables Collection 12 13 4.2.2.1 Recyclable Materials 14 15 Residential Recyclables shall be collected from all participating Single-Family Residences Customers as 16 part of basic Garbage collection services, without extra charge. If operational or recycling processing 17 improvements are made that allow additional materials to be recycled at no additional cost to the 18 Contractor, the Contractor agrees to expand the defined list of Residential Recyclables to cover such 19 materials, subject to prior written approval by the City. The Contractor shall collect Curbside prepared 20 and either called-in or set-out Recyclables as described in Exhibit C. With the exception of Corrugated 21 Cardboard, the maximum dimensions for Recycling materials shall be two (2) feet by two (2) feet. 22 23 The City reserves the right to engage in product stewardship and/or waste prevention activities that 24 may result in one or more materials being removed from the Exhibit C list. 25 26 4.2.2.2 Containers 27 28 The Contractor shall provide collection Containers to Customers at no charge. The default Recycling Cart 29 size shall be 96-gallons, provided that the Contractor shall offer and provide 35- or 64-gallon Recycling 30 Carts on request to those Single-Family Residence Customers requiring less capacity than provided by 31 the standard 96-gallon Recycling Cart. 32 33 Recycling Carts shall be delivered by the Contractor to new Single-Family Residence Customers, those 34 Customers requesting replacements, or Customers that had previously rejected their Recycling Cart, 35 within seven (7) days of the Customer’s initial request. 36 37 4.2.2.3 Specific Collection Requirements 38 39 Single-Family Residence Recyclables collection shall occur every-other-weekly on the same day as each 40 household’s Garbage and Compostables collection. Collections shall be made from Residences on a 41 regular schedule on the same day and as close to a consistent time as possible. The Contractor shall 42 collect on Public Streets and Private Roads in the same location as Garbage collection service is 43 provided. The Contractor’s crews shall make collections in an orderly, non-disruptive and quiet manner, 44 and shall return Containers with their lids closed and attached to their set out location, and out of any 45 Public Street, in an orderly manner. 46 47


The defined list of Residential Recyclables in Exhibit C shall be collected from all participating Single-1 Family Residences as part of basic Garbage collection services, without extra charge. The Contractor 2 shall collect all Residential Recyclables from Single-Family Residences that are placed in Contractor 3 owned Carts or are boxed or placed in a paper bag next to the Customers’ Recycling Cart. Recyclables 4 must be prepared as described in Exhibit C and uncontaminated with food or other residues. No limits 5 shall be placed on set-out volumes for Curbside Recyclables, other than those specifically listed in 6 Exhibit C. 7 8 4.2.3 Single-Family Residence Compostables Collection 9 10 4.2.3.1 Subject Materials 11 12 Properly-prepared Compostables shall be collected from all Single-Family Residence Customers. 13 14 4.2.3.2 Containers 15 16 The Contractor shall provide one Compostables Cart to each Single-Family garbage Customer at no 17 charge and shall provide additional Compostable Carts and service at the additional Compostable Cart 18 fee provided in Exhibit B. The default Compostables Cart size shall be 96-gallons, provided that the 19 Contractor shall offer and provide 35- or 64-gallon Compostables Carts on request to those Single-Family 20 Residence Customers requiring less capacity than provided by the default Compostables Cart. The 21 Contractor shall also provide a smaller capacity Food Mini-can for Customers wishing to use a Container 22 only for Food Scraps. The model Food Mini-can used by the Contractor shall be approved in writing by 23 the City prior to the Contractor purchasing inventory. 24 25 Excess Yard Debris material that does not fit in a Compostables Cart shall be bundled or placed in Kraft 26 paper bags or properly labeled Customer-owned Garbage Cans. Customers choosing to use their own 27 Garbage Can for excess Yard Debris shall be provided durable stickers by the Contractor that clearly 28 identify the container’s contents as “Yard Debris.” Excess Yard Debris shall be charged at the Extra Unit 29 rate specified in Exhibit B. 30 31 Compostables Carts shall be delivered by the Contractor to new Customers and Customers requesting a 32 replacement Compostables Cart within seven (7) days of the Customer’s initial request. 33 34 The Contractor shall provide and distribute to all requesting Single-Family Residence Customers a 35 kitchen Food Scrap collection container, previously approved by the City in writing, with a capacity of 36 approximately 9.6 quarts. The Contractor shall include instructional materials, subject to the City’s prior 37 written approval, with all kitchen Food Scrap collection containers. Distributed Food Scrap collection 38 containers shall include at least two biodegradable liner samples, provided at the Contractor’s cost. 39 40 The Contractor shall provide an on-call fee-based Compostables Container cleaning service to Customers 41 at the rate provided in Exhibit B. 42 43 4.2.3.3 Specific Collection Requirements 44 45 Properly prepared Compostables shall be collected weekly on the same day as each household’s 46 Garbage and Recyclables collection from all subscribers. Collections shall be made from Single-Family 47


Residence Customers on a regular schedule on the same day and as close to a consistent time as 1 possible. Compostables in excess of 96 gallons may be charged at the additional Cart rate (if that 2 Customer has ordered one or more additional Compostables Carts) or as Compostables Extra Units in 32 3 gallon increments in accordance with Exhibit B. 4 5 Compostables may be placed in Carts, paper bags, bundles, or relabeled Garbage Cans next to the initial 6 Compostables Cart, provided that Food Scraps shall be contained in the initial Cart and only Yard Debris 7 shall be placed in bags, bundles, or open cans. 8 9 The Contractor shall collect on Public Streets and Private Roads in the same location as Garbage 10 collection is provided. The Contractor’s crews shall make collections in an orderly and quiet manner, and 11 shall return Containers in an upright position, with lids attached, to their set out location and out of the 12 public street 13 14 4.2.4 Multifamily Complex and Commercial Customer Garbage Collection 15 16 4.2.4.1 Subject Materials 17 18 The Contractor shall collect all Garbage set out for disposal by Multifamily Complex and Commercial 19 Customers in or properly prepared and contained materials next to Containers. 20 21 4.2.4.2 Containers 22 23 Multifamily Complex and Commercial Customers shall be offered a full range of Container and service 24 options, including Garbage Carts, one (1) through eight (8) cubic yard non-compacted Detachable 25 Containers, and one (1) through six (6) cubic yard compacted Detachable Containers. Containers shall be 26 provided to Customers at no charge, except for compacting Containers or unless otherwise set forth in 27 this Contract and directed by the City. 28 29 Materials in excess of Container capacity or the subscribed service level shall be collected and properly 30 charged as Extra Units as directed by the City. The Contractor shall develop and maintain route lists in 31 sufficient detail to allow accurate recording and charging of all Extra Units. 32 33 The Contractor may use either or both front-load or rear-load Detachable Containers to service 34 Multifamily Complex and Commercial Customers. However, not all collection sites within the City 35 Service Area may be appropriate for front-load collection due to limited maneuverability or overhead 36 obstructions. The Contractor shall provide Containers and collection services capable of servicing all 37 Customer sites, whether or not front-load collection is feasible. 38 39 Containers shall be delivered by the Contractor to requesting Multifamily Complex and Commercial 40 Customers within three (3) days of the Customer’s initial request. 41 42 4.2.4.3 Specific Collection Requirements 43 44 Collections from both Multifamily Complex and Commercial Customers shall be made on a regular 45 schedule on the same day and as close to a consistent time as possible to minimize Customer confusion. 46 47


The Contractor shall provide locks for Containers upon request and remove and replace Containers from 1 enclosures and position (roll-out) Containers up to twenty-five (25) feet for Garbage (and Recycling and 2 Compostable) collection at no additional charge. Additional roll-out charges may be assessed in twenty-3 five (25) foot increments only to those Multifamily Complex and Commercial Customers for whom the 4 Contractor must move a Container over twenty-five (25) feet to reach the collection vehicle at its 5 nearest point of access. Extra charges may be assessed for materials loaded so as to lift the Container lid 6 in excess of six (6) inches from the normally closed position. The Contractor shall not charge fees for 7 either opening gates or unlocking containers. Customers with hard-to-access Containers requiring the 8 Contractor to wait for Customer Container relocation or requiring Contractor’s use of specialized 9 equipment for Container relocation may charge those Customers additional access fees and/or hourly 10 fees consistent with Exhibit B. 11 12 Multifamily Complex and Commercial Garbage may request extra collections and shall pay a 13 proportional amount of their regular monthly rate for that service as established by the City. 14 15 4.2.5 Multifamily Complex and Commercial Recyclables Collection 16 17 4.2.5.1 Subject Materials 18 19 All properly prepared Recyclables listed in Exhibit C for Multifamily and Commercial Customers, shall be 20 collected as part of the basic Garbage collection services, without extra charge and without limit. The 21 City reserves the right to engage in product stewardship and/or waste prevention activities that may 22 result in one or more materials being removed from the Recyclables listed in Exhibit C. 23 24 4.2.5.2 Containers 25 26 The Contractor shall provide Recycling Containers at no additional charge to all Multifamily Complex and 27 Commercial Customers requesting Containers. 28 29 The Contractor shall encourage and promote recycling and recommend appropriate Container sizes 30 through its site visit and evaluation process. The Contractor shall encourage the use of Detachable 31 Containers or Drop-box Containers instead of multiple Carts at locations where more than one cubic 32 yard of Recycling capacity is provided, unless space or other constraints favor the use of Carts. 33 Containers used for the collection of Recyclables shall be delivered by the Contractor to requesting 34 Customers within three (3) days of the Customer’s initial request. The Contractor may decline to collect 35 Recyclables if the Container in which they are placed by the Customer contains Excluded Materials or 36 other materials that do not conform to the definition of Recyclables or that do not meet specifications. 37 38 4.2.5.3 Specific Collection Requirements 39 40 Multifamily Complex and Commercial recycling collection shall occur at least weekly or more frequently 41 if space constraints preclude providing sufficient weekly capacity. Collections shall be made on a regular 42 schedule on the same day(s) of the week and as close to a consistent time as possible to minimize 43 Customer and tenant confusion. The Contractor’s crews shall make collections in an orderly, non-44 disruptive, and quiet manner, and shall return Containers after emptying to the same location as found, 45 with their lids closed. 46 47


4.2.6 Multifamily Complex and Commercial Customer Compostables Collection 1 2 The Contractor shall provide subscription-based Compostables collection services on the City’s approval 3 to requesting Multifamily Complexes and Commercial Customers. 4 5 4.2.6.1 Subject Materials 6 7 The Contractor shall provide collection of Compostables from any requesting Multifamily Complex or 8 Commercial Customer, subject to that Customer’s continued compliance with material preparation 9 requirements. Contaminated or oversized Compostables materials rejected by the Contractor shall be 10 tagged in writing in a prominent location with an appropriate problem notice explaining why the 11 material was rejected. 12 13 4.2.6.2 Containers 14 15 Carts or Food Mini-Cans shall be provided to subscribers as part of the service at no additional charge. 16 Compostables Containers shall be delivered by the Contractor to Multifamily Complex and Commercial 17 Customers within three (3) days of a Customer’s initial request. 18 19 The Contractor shall offer regular weekly or twice-weekly collection of the following service levels, at 20 the rates set forth in Exhibit B: 21 22

1. One 35-gallon cart (weekly) 23 2. One 64-gallon cart (weekly or semi-weekly) 24 3. One 96-gallon cart (weekly or semi-weekly) 25

26 4.2.6.3 Specific Collection Requirements 27 28 Multifamily Complex and Commercial Customer Compostables collection shall occur weekly or twice-29 weekly, as subscribed for and requested by the Customer. Collections shall be made on a regular 30 schedule on the same day(s) of the week and as close to a consistent time as possible to minimize 31 Customer confusion. The Contractor’s crews shall make collections in an orderly and quiet manner, and 32 shall return Containers after emptying to the same location as found, with their lids closed. 33 34 4.2.7 Drop-Box Container Garbage Collection 35 36 4.2.7.1 Subject Materials 37 38 The Contractor shall provide Drop-Box Container Garbage collection services to Customers, in 39 accordance with the service level selected by the Customer. 40 41 4.2.7.2 Containers 42 43 The Contractor shall pay the cost of procuring and providing Containers for Garbage meeting the 44 standards described in Section 4.1.15. Both Customer-owned and Contractor-owned Drop-box 45 Containers shall be serviced, including Customer-owned compactors. 46 47


The Contractor shall maintain a sufficient Drop-box Container inventory to provide delivery of empty 1 containers by the Contractor to new and temporary Customers within three (3) business days after the 2 Customer’s initial request. 3 4 4.2.7.3 Specific Collection Requirements 5 6 The Contractor shall provide dispatch service and equipment capable of collecting full Drop-box 7 Containers on the same business day if the Customer’s initial request is received by the call center 8 before or at 10:00 a.m., and no later than the next business day if the Customer’s initial call is received 9 by the call center after 10:00 a.m. At the Customer’s request, the Contractor shall deliver an empty 10 Drop-box Container to the Customer at the time of collecting the full Drop-box Container. Drop-box 11 Containers shall be delivered to new Customers within one business day of their initial request. 12 13 The Contractor shall detach, remove and replace Drop-Box Containers from locked or unlocked 14 enclosures at no additional charge. The Contractor may charge additional time and/or mileage only if 15 (1) the Customer requests that Contractor deliver material to a facility other than the closest King 16 County disposal facility, (2) the facility is one to which the Contractor is allowed to deliver the material 17 under this Contract, and (3) Contractor delivers the material to such facility after advising the Customer 18 in writing (e-mail is acceptable) as to the basis of the additional time and/or mileage charges to be 19 payable by the Customer on account of such delivery(ies). 20 21 4.2.8 Temporary (Non-Event) Container Customers 22 23 The Contractor shall maintain a sufficient Container inventory, including Detachable Container and 24 Drop-box Containers, to provide delivery of empty Containers by the Contractor to temporary 25 Customers within twthree business days enty-four (24) hours after the Customer’s initial request. The 26 charges for temporary Detachable Container service as listed in Exhibit B shall include delivery, 27 collection, distance, and disposal or processing for Recyclables or Compostables. No additional fees 28 other than those included in Exhibit B may be charged. Temporary Garbage services do not include 29 embedded Recycling or Compostables collection and shall not exceed ninety (90) days in duration. 30 Customers requiring service for more than ninety (90) days shall subscribe for regular combined 31 Garbage, Recycling, and Compostables service. 32 33 4.2.9 Special Event Services 34 35 Contractor shall provide temporary Garbage, Recyclables, and Compostables Containers to Customers 36 sponsoring special events within the Service Area at the rates listed in Exhibit B. Contractor shall provide 37 such Customers with assistance in determining Container needs and signage for Garbage, Recyclables, 38 and Compostables at the special events, including site visits and technical assistance to ensure that the 39 maximum Recyclables and Compostables diversion is achieved. Contractor shall coordinate their efforts 40 with the City, and provide such Customers and the City with a summary of the volumes and tonnages of 41 materials disposed of and diverted for recycling and composting. 42 43 Contractor shall provide special event services as a bundle, with each event providing collection of 44 Recyclables and Compostables at no additional charge as part of the event Garbage collection service. 45 The provision of Garbage-only service shall only be provided on a case-by-case basis upon prior written 46 approval of the City. 47


1 4.2.10 City Services 2 3 The Contractor shall provide weekly Garbage, Recyclables and Compostables collection to all City -4 owned municipal facilities and parks as a part of this Agreement and at no additional charge. The service 5 levels for each City facility listed may be changed at the City’s discretion at no additional cost to the City. 6 As of the date herein, these facilities consist of the following: 7 8

Facility Address Mercer Island City Complex 9601 and 9611 SE 36th Street Luther Burbank Park 2040 84th Ave SE Aubrey Davis Park 2101 72nd Ave SE Fire Station #91 3030 78th Ave SE City Maintenance Facility 9611 SE 36th Street Island Crest Park 5000 Island Crest

Way 3600 East Mercer

Way 4320 88th Ave SE Mercerdale Park/Mercer Island Thrift Shop Drop-box (up to X amount125 drop-box hauls and 155 tons annually). of collection annually, Aadditional hauls or tonnage shall be at Contract rates)

7710 SE 34th

Mercer Island Community & Event Center

8236 SE 24th

Fire Station #92 8473 SE 68th South Mercer Playfields 84th Ave SE and SE 78th Island Crest Park Sea Lawn 40th and 81st Holmes Downtown receptacles (up to 34 ) 34 locations within the downtown

zone. 9 At any time during the Term of this Contract, the City may add up to two City facilities and up to two 10 additional City parks in addition to those listed above. 11 12 In cases in which Garbage, Recyclables or Compostables are generated through the performance by 13 third parties of services for the City outside of the normal operation of a municipal facility, Contractor 14 may charge for the collection of such materials in accordance with charges listed in Exhibit B. For 15 example, the City could be required by Contractor to pay for the disposal of debris generated by the 16 replacement of the roof of a City facility. Regular Garbage, Recyclables and Compostables generated on 17 an ongoing basis at all City facilities in the ordinary course of their operations, however, whether 18 generated by staff or third parties (e.g. janitorial contractor) will be collected by the Contractor without 19 charge to the City. Tenants or other occupants of a municipal facility, other than those who operate the 20 facility as a City contractor of municipal services may be charged by Contractor in accordance with this 21 Contract for the collection from them of associated Garbage, Recyclables and Compostables. 22


1 4.2.11 Community Events 2 3 The Contractor shall provide support for up to three City-sponsored events each year. That support 4 shall include Garbage, Recyclables, and Compostables Cart collection as necessary, including delivery, 5 placement, collection, disposal/diversion of materials, and removal of Carts after the event. The three 6 initial public events designated by the City are SeaFair, Summer Celebration, and Leap for Green. 7 8 Additional event services for public (above the three provided at no cost each year) or all events 9 conducted by private Customers shall be charged at the rate listed in Exhibit B. Rates are all-inclusive 10 for delivery, setup and collection of containers. 11 12 4.2.12 On-call Bulky Waste Collection 13 14 The Contractor shall provide on-call Bulky Waste collection to any Customer, including Multifamily and 15 Commercial Customers. 16 17 On-call collection of Bulky Waste shall be provided by the Contractor to Customers by appointment for 18 no more than the charge set forth in Exhibit B to this Contract, with collection occurring no later than 19 five (5) business days after a Customer initial request. 20 21 Customers must place Bulky Waste at the regular Garbage collection location no more than 24-hours 22 prior to collection. The Contractor shall notify the Customer of the specific date that their item will be 23 collected, the charge that will be made to their next bill, and where the item should be placed for 24 collection. 25 26 The Contractor shall recycle all metal appliances, unless another arrangement is approved in writing by 27 the City, and to make a reasonable effort to recycle all other materials collected. The Contractor shall 28 direct Customers to remove doors from refrigerators and freezers before collection and not to place 29 Bulky Waste at the Curb prior to twenty-four (24) hours before scheduled collection. 30 31 The Contractor shall maintain a separate log listing service date, materials collected, Customer charges, 32 weights, and whether the item was recycled or disposed. This log shall be provided to the City on a 33 monthly basis in accordance with Section 4.3.4. On-call Bulky Waste collection must occur during the 34 hours and days specified in Section 4.1.3, with the exception that Saturday collection is permissible if it 35 is more convenient for Customers. The Contractor’s crews shall make collections in an orderly, non-36 disruptive and quiet manner. 37 38 4.2.13 Excluded Services 39 40 This Contract does not include the collection or disposal of Unacceptable Waste. 41 42 4.3 COLLECTION SUPPORT AND MANAGEMENT 43 44 4.3.1 General Customer Service 45 46


The Contractor shall be responsible for providing all Customer service functions, including, but not 1 limited to: 2 3

• Answering Customer telephone calls and e-mail requests; 4 • Requesting at start of service Customer’s preference for notification of service changes via robo-5

calls, texts or emails; 6 • Informing Customers of current, new, and optional services and charges; 7 • Handling Customer subscriptions and cancellations; 8 • Receiving and resolving Customer complaints; 9 • Dispatching Drop-box Containers, temporary containers, and special collections; 10 • Billing; 11 • Maintaining and updating regularly as necessary a user-friendly internet website; and 12 • Maintaining and updating regularly as necessary a user-friendly mobile application. 13

14 These functions shall be provided at the Contractor’s sole cost, with such costs included in Contractor 15 charges set forth in Exhibit B. 16

4.3.2 Specific Customer Service Requirements 17 18 The Contractor shall maintain a service base for storing and/or maintaining collection vehicles within 19 fifteen (15) miles of the City’s corporate limits. Operations and management staff shall be located at 20 that site, provided that call center operations may be remotely provided. The Contractor’s call center 21 shall be open at a minimum from 7:00 a.m. to 7:00 p.m. weekdays, and no less than four hours on 22 Saturdays. The holiday collection schedule described in Section 4.1.6 shall also apply to Customer 23 service coverage. Customer service representatives shall be available through the Contractor’s call 24 center during office hours for communication with the public and City representatives. Customer calls 25 shall be taken during office hours by a person, not by voice mail. During all non-office hours for the call 26 center, the Contractor shall have an answering or voice mail service available to record messages from 27 all incoming telephone calls, and include in the message an emergency telephone number for 28 Customers to call during outside normal office hours in case of an emergency. 29 30 The Contractor shall maintain a twenty-four (24) emergency telephone number for use by the City. The 31 Contractor shall have a representative, or an answering service to contact such representative, available 32 at such emergency telephone number for city-use during all hours, including normal office hours. 33 Inability to reach the Contractor’s staff via the emergency telephone numbers shall be cause for 34 performance fees in accordance with Section 6.1.2 35 36 4.3.2.1 Customer Service Representative Staffing 37 38 During office hours, the Contractor shall maintain sufficient call center staff to answer and handle 39 complaints and service requests from all Customers without delay. If incoming telephone calls 40 necessitate, the Contractor shall increase staffing levels as necessary to meet Customer service 41 demands. The Contractor shall provide and publicize a telephone number capable of handling service 42 related text messages. 43 44 The Contractor shall maintain sufficient staffing to answer and handle complaints and service requests 45 in a timely manner made by methods other than telephone, including letters, e-mails, mobile messages 46


or webpage messages. If staffing is deemed to be insufficient by the City to handle Customer complaints 1 and service requests in a timely manner, the Contractor shall increase staffing levels to meet 2 performance criteria. 3 4 The Contractor shall provide additional staffing during the transition and implementation period, and 5 especially from six (6) weeks prior to the Date of Commencement of Service, through the end of the 6 fourth month after the Date of Commencement of Service, to ensure that sufficient staffing is available 7 to minimize Customer waits and inconvenience. The Contractor shall receive no additional 8 compensation for increased staffing levels during the transition and implementation period. Staffing 9 levels during the transition and implementation period shall be subject to the City’s prior review and 10 approval. 11 12 4.3.2.2 City Customer Service 13 14 The Contractor shall maintain staff that has management level authority to provide a point of contact 15 for the majority of inquiries, requests, and coordination covering the full range of Contractor activities 16 related to this Contract. Duties include, but are not limited to: 17 18

• Assisting staff with promotion and outreach to Single-Family Residences, Multifamily 19 Complexes, Commercial Customers, and special events; 20

• Serving as an ombudsperson, providing quick resolution of Customer issues, complaints, and 21 inquiries; and 22

• Assisting the City with program development and design, research, response to inquiries, and 23 troubleshooting issues. 24

25 A Contractor-designated service expert shall be immediately accessible by staff to address emerging 26 problems as needed, and shall return messages (telephone, mobile messaging, or e-mail) within four (4) 27 hours of the City’s leaving or sending a message. 28 29 Should the Contractor fail to meet the City expectations for customer service as described herein, the 30 Contractor shall be assessed performance fees in accordance with Section 6.1. 31 32 4.3.2.3 Service Recipient Complaints and Requests 33 34 The Contractor shall record all complaints and service requests, regardless of how received, including 35 date, time, Customer’s name and address, if the Customer is willing to give this information, method of 36 transmittal, and nature, date and manner of resolution of the complaint or service request in a 37 computerized daily log. Any telephone calls received through the Contractor's non-office hours voice 38 mail or answering service shall be recorded in the log no later than by the following business day. The 39 Contractor shall make a conscientious effort to respond directly to the Customer and resolve all 40 complaints within one business day twenty-four (24) hours of the original phone call, letter, or 41 electronic communication, and service requests within the times established throughout this Contract 42 for various service requests. If a longer response time is necessary for complaints or requests, the 43 reason for the delay shall be noted in the log, along with a description of the Contractor’s efforts to 44 resolve the complaint or request. 45 46


The Customer service log shall be available for inspection by the City, or its designated representatives, 1 during the Contractor’s office hours, and shall be in a format approved by the City. The Contractor shall 2 provide a copy of this log in an electronic format from the Microsoft Office suite (or other City-approved 3 format) of software to the City with the monthly report. 4 5 4.3.2.4 Handling of Customer Calls 6 7 All incoming telephone calls shall be answered promptly and courteously, with an average speed of 8 answer of less than thirty (30) seconds. No telephone calls shall be placed on hold for more than two (2) 9 minutes per occurrence, and on a monthly basis, no more than 10% of incoming telephone calls shall be 10 place on hold for more than twenty (20) seconds. A Customer shall be able to talk directly with a 11 Customer service representative when calling the Contractor’s Customer service telephone number 12 during office hours without navigating an automated phone answering system. An automated voice mail 13 service or phone answering system may be used when the office is closed. 14 15 A Customer calling into the Customer service phone lines and placed on hold shall hear either the City -16 specific messages or messages that are applicable and not misleading to Customers. 17 18 4.3.2.5 Corrective Measures 19 20 Upon the receipt of Customer complaints in regard to busy signals or excessive delays in answering the 21 telephone, the City may request the Contractor submit a plan to the City for correcting the problem. 22 Once the City has approved the plan, the Contractor shall have sixty (60) days to implement the 23 corrective measures, except during the transition and implementation period from one (1) month prior 24 to the Date of Commencement of Service, through the end of the fourth month after the Date of 25 Commencement of Service, during which the Contractor shall have one (1) week to implement 26 corrective measures. Reasonable corrective measures shall be implemented without additional 27 compensation to the Contractor. Failure to provide corrective measures shall result in possible 28 performance fees for the Contractor. 29 30 4.3.2.6 Contractor Internet Website 31 32 The Contractor shall provide a continuously available user-friendly Internetmaintain a website, 33 containing information specific to the City’s collection programs, including at a minimum contact 34 information, collection schedules, current day of collection map that is dated as of the last change and 35 always current, material preparation requirements, available services and options, rates and fees, 36 inclement weather service changes, and other relevant service information for its Customers. The 37 website shall include an e-mailcontact function for Customer communication with the Contractor, and 38 the ability for Customers to submit service requests and manage their services on-line. E-39 mailedElectronic Customer service requests shall be answered within tw one business day enty-four (24) 40 hours of receipt. 41 42 The website design shall be usability tested and then submitted to the City for approval a minimum of 43 three (3) months prior to the Date of Commencement of Service of this Contract, and then changes shall 44 be subject to the City’s prior approval throughout the term of this Contract. The Contractor shall provide 45 among its local staff a knowledgeable and proficient website manager that is responsive to the City’s 46 request(s) for changes to the Contractor’s website. Changes requested by the City consisting of textual 47


messages only shall be uploaded to the website within seventy-two (72) hours of the time of the 1 request(s). Changes requested by the City, of a textual nature, that are related to an emergency or time-2 sensitive situation (such as an inclement weather event, windstorm, or event preventing access to a 3 Customer’s regular place of container set-out) shall be uploaded to the website as soon as possible and 4 not more than six (6) hours from of the time of request. Changes requested by the City that include a 5 graphical component must be uploaded to the website within ten (10) days of the time of the request. 6 7 The Contractor shall provide timely updates to the website monthly, and more often if necessary, and 8 provide links to the City’s website, checking on a regular basis that all links are current. The website shall 9 include information requested by the City translated into a minimum of four (4) languages other than 10 English, including Spanish, Chinese, Korean, Russian, and one other language to be identified by the City. 11 Upon the City’s request, the Contractor shall provide a website utilization report indicating the usage of 12 various website pages and e-mail option. 13 14 4.3.2.7 Full Knowledge of Garbage, Recyclables, and Compostables Programs Required 15 16 The Contractor’s Customer service representatives shall be fully knowledgeable of all collection services 17 available to Customers, including the various services available to Single-Family Residence, Multifamily 18 Complex and Commercial Customers. For new Customers, Customer service representatives shall 19 explain all Garbage, Recyclables, and Compostables collection options available depending on the sector 20 the Customer is calling from. For existing Customers, the representatives shall explain new services and 21 options, and resolve recycling issues, collection concerns, missed pickups, container deliveries, and 22 other Customer concerns. Customer service representatives shall be trained to inform Customers of 23 Recyclables and Compostables preparation specifications. City policy questions shall be immediately 24 forwarded to the City for response. 25 26 The Contractor’s Customer service representatives shall have instantaneous electronic access to 27 Customer service data and history to assist them in providing excellent customer service. The Contractor 28 shall provide the City with internal customer service representative training and support information 29 specific to the City to allow the City to review and check information provided to customer service 30 representatives and, in turn, provided to Customers. Any revisions to these materials shall be approved 31 in writing (e-mail is acceptable) by the City prior to being used by customer service representatives. 32 33 4.3.2.8 Customer Communications 34 35 All Customer communications (other than routine service and billing interactions with individual 36 Customers) shall be reviewed and approved by the City before distribution. 37 38 The City and Contractor recognize that Customer preferences for their method of communication may 39 change during the Term of this Contract and agree to adjust customer service expectations to match 40 Customer preferences. For example, if call traffic to the Contractor’s telephone-based call center 41 reduces over time and is supplanted by an increase in texting, the Contractor shall shift staff resources 42 accordingly to ensure high levels of customer service. The City and Contractor agree to review Contract 43 requirements periodically and negotiate in good faith any desired improvements to the Contract service 44 standards related to customer service delivery. 45


4.3.3 Contractor’s Customer Billing Responsibilities 1 2 The Contractor shall be responsible for all billing functions related to the collection services required 3 under this Contract. All Single-family Residence Customers shall be billed every-other-month or 4 quarterly, and Multifamily Complex and Commercial Customers shall be billed monthly. In no case shall 5 a Customer’s invoice be past due prior to the receipt of all services covered by the billing period. The 6 Contractor’s billing cycle parameters include, but are not limited to the service period, invoice date, due 7 date, late fee date, reminder date(s), Container removal and stop-service date. The City reserves the 8 right to review and provide feedback on the bill template used by the Contractor as to format and 9 design to ensure Customer satisfaction. The Contractor shall evaluate and may incorporate the City’s 10 recommendations in good faith. Billing and accounting costs associated with Customer invoicing, 11 including credit card fees, shall be borne by the Contractor, and are included in the service fees in 12 Exhibit B. The Contractor may bill to Customers late payments and “non-sufficient funds” check charges, 13 as well as the costs of bad debt collection, under policies and amounts that have been previously 14 approved in writing by the City. 15 16 The Contractor shall offer paperless billing, including an autopay/electronic notification function that 17 allows Customer to set up autopay and receive an e-mail or text notification of the amount and draw 18 date of the payment, without requiring the Customer to navigate to the Contractor’s website to obtain 19 that information. 20 21 Customers may temporarily suspend collection services due to vacations or other reasons for as long 22 and as often as desired in two (2) week increments and be billed pro-rata for actual services received. 23 The Contractor may charge an extended vacation hold/standby fee as listed in Exhibit B instead of 24 retrieving Carts for those Customers who request a vacation hold greater than one month in duration. 25 26 The Contractor shall be responsible for the following: 27 28

• Generating combined Garbage, Recyclables, and Compostables collection bills for all Customers; 29 30

• Generating bills printed double-sided, on at least thirty percent (30%) post-consumer recycled-31 content paper; 32

33 • Generating bills that include at a minimum a statement indicating the Customer’s current 34

service level, current charges and payments, appropriate taxes and fees, Customer service 35 contact information and website information; 36

37 • Generating bills that clearly state the date at which late fees will be assessed for non-payment; 38

39 • Generating bills that have sufficient space on the front or back of the bill for educational or 40

informational messaging, as directed by the City; 41 42

• Accepting automatic ongoing payments from Customers via debit or credit card, checking or 43 savings account withdrawal, or by wire transfer. No transaction fees may be levied on any 44 Customer payments; 45

46 • Accepting, processing, and posting payment data each business day; 47


1 • Accepting bill inserts from the City for specific Customer sectors; 2

3 • Maintaining a system to monitor Customer subscription levels, record excess Garbage or 4

Compostables collected, place an additional charge on the Customer’s bill for the excess 5 collection, and charge for additional services requested and delivered. This system shall 6 maintain a Customer’s historical account data for a period of not less than six (6) years from the 7 end of the fiscal year in accordance with the City’s record retention policy, and in a manner that 8 is instantaneously accessible to Customer service representatives needing to refer to Customer 9 service data and history; 10

11 • Accepting and responding to Customer requests for service level changes, missed or inadequate 12

collection services, and additional services; 13 14

• Collecting unpaid charges from Customers for collection services; and 15 16

• Implementing rate changes as specified in Section 5.3. 17 18 The Contractor shall be required to have procedures in place to backup and minimize the potential for 19 the loss or damage of the account servicing (e.g., Customer service, service levels, and billing history) 20 database. The Contractor shall ensure that at a minimum a daily backup of the account servicing 21 database is made and stored off-site. The Contractor shall also provide the City with a copy of the 22 account servicing database (excluding Customer financial information such as credit card or bank 23 account numbers) sorted by Customer sector via via e-mail, FTP site or electronic media upon request. 24 The City shall have unlimited rights to use such account servicing database for the purpose of developing 25 targeted educational and outreach programs, analyzing service level shifts or rate impacts, and/or 26 providing information to successor contractors. 27 28 Upon seven (7) days written notice, the Contractor shall provide the City with a paper and/or electronic 29 copy at the City’s discretion of the requested Customer information and history, including but not 30 limited to Customer names, service and mailing addresses, contact information, service levels, and 31 current account status. 32

4.3.4 Reporting 33 34 The Contractor shall provide monthly, annual, and ad hoc reports to the City. The Contractor report 35 formats may be modified from time to time at the City’s request at no cost to the City. In addition, the 36 Contractor shall allow City staff access to pertinent operations information related to compliance with 37 the obligations of this Contract, such as vehicle route assignment and maintenance logs, Garbage, 38 Recyclables, and/or composting facility certified weight slips, and Customer charges and payments. 39 40 4.3.4.1 Monthly Reports 41 42 On a monthly basis, by the last working day of each month, the Contractor shall provide a report 43 containing the following information for the previous month. Reports shall be submitted in an electronic 44 format approved by the City and shall be certified as accurate by the Contractor. At minimum, reports 45 shall include: 46


1 1. A log of all Customer requests, complaints, inquiries, and site visits, including Customer name, 2

property name and address, date of contact or site visit, reason for site visit, results of Customer 3 request, complaint, and inquiry and/or site visit. 4 5

2. A tabulation of the number of Single-Family, Commercial, and Multifamily Complex accounts by 6 service level/Container size, and service frequency. 7

8 3. Reports from the Contractor’s customer service telephone system showing total call volume, 9

total calls answered, and average speed of answer.. 10 11

4. Website utilization report showing total number of Customers managing their services on-line, 12 total number of e-mails received via website, data on site usage, and other data or information 13 as Mercer Island may require for internal reporting purposes. 14

15 5. A summary of total Garbage, Recyclables, and Compostables quantities collected (in tons) for 16

each collection sector by month and year-to-date. The summary shall include program 17 participation statistics including: a summary of Multifamily Complex and Commercial 18 participation in recycling programs and set-out statistics for Residential Garbage, Compostables, 19 and Recyclables collection services. Where item counts are more appropriate for certain 20 Recyclables or Bulky Wastes (e.g. appliances, CFLs, etc.), reporting item counts are sufficient. 21 The summary shall include the names of facilities used for all materials and tonnage delivered to 22 each facility. 23 24

6. A summary of Recyclables quantities, market prices, contamination levels and processing 25 residues disposed as Garbage. 26

27 7. A list of current disposal or processing locations and fees per ton for each material collected. 28

29 8.7. A description of any vehicle accidents, infractions and reported leaks. 30

31 9.8. A description of any changes to collection routes, Containers, vehicles (including the 32

identification of back-up vehicles not meeting contract standards with the truck number and 33 date of use), customer service or other related activities affecting the provision of services. 34 35

10.9. A description of any promotion, education, and outreach efforts, including where 36 possible, samples of materials, and summary of any feedback or response received from 37 Customers. 38

39 11.10. A description of Contractor activities and tonnages for City services and events. 40

41 If collection vehicles are used to service more than one Customer sector, the Contractor shall develop an 42 apportioning methodology that allows the accurate calculation and reporting of collection volumes and 43 quantities from the different sectors. The apportioning methodology shall be subject to the prior review 44 and written approval of the City, and shall be periodically verified through field-testing by the 45 Contractor. 46 47


4.3.4.2 Annual Reports 1 2 On an annual basis, by the first working day of March, the Contractor shall provide a report containing 3 the following information for the previous year: 4 5

1. A consolidated summary and tabulation of the monthly reports, described above. 6 7

2. A discussion of highlights and other noteworthy experiences, along with measures taken to 8 resolve problems, increase efficiency, and increase participation in, and volume of, Recyclables 9 and Compostables collection programs. 10

11 3. A discussion of opportunities and challenges expected during the current year, including steps 12

being taken to take advantage of opportunities and resolve the challenges. 13 14

4. A discussion of promotion, education, and outreach efforts, and accomplishments for each 15 sector. 16

17 5. An inventory of current collection vehicles and other major equipment, including model, year, 18

make, serial or VIN number, assigned vehicle number, mileage (if vehicle), collection sector 19 assigned to or used in, and maintenance history, including vehicle painting. 20

21 6. An inventory of all Containers used in the performance of this Contract, including location 22

address, Customer name and contact information, and the size of all Containers used at that 23 address. 24

25 7. A list of Multifamily Complexes eligible for Recycling and Compostables collection service but 26

not receiving one or both services, with the results of required contacts made during the year to 27 promote the Recycling and/or Compostables service to those complexes, including the reason 28 why the Multifamily Complex is not receiving Recycling and/or Compostables service. 29 30

8. A list of Commercial Customers eligible for Recycling and Compostables collection service but 31 not receiving one or both services, with the results of required contacts made during the year to 32 promote the Recycling and/or Compostables service to those sites, including the reason why the 33 Commercial Customer is not receiving Recycling and/or Compostables service. 34

35 9. A detailed report on Container change-out, cleaning, painting, re-stickering and/or labeling, and 36

replacement completed or not completed on schedule during the previous year. 37 38

10. A summary of the monthly logs of Customer requests, complaints, inquiries, site visits, and 39 resolutions or results, as required in Section 4.3.4.1. The summary shall organize Customer 40 requests, complaints, inquiries, and site visits by category (e.g., missed pickups, improper set-41 ups). 42 43

The annual report shall be specific to the City’s operations, written in a format appropriate for contract 44 management and shall not be a generalized listing of Contractor activities in the region or elsewhere. 45 46


4.3.4.3 Ad Hoc Reports 1 2 The City may request and receive from the Contractor up to six (6) ad-hoc reports each year, at no 3 additional cost to the City. These reports may include customer service database tabulations to identify 4 specific service level or participation patterns or other similar information. Reports shall be provided in a 5 City-defined format and with Microsoft software (or other City-approved software) compatibility. These 6 reports shall not require the Contractor to expend more than one hundred (100) staff hours per year to 7 complete. 8 9 4.3.4.4 Other Reports 10 11 If requested by the City, the Contractor shall provide daily route information for all service sectors and 12 collection streams for the purpose of evaluating potential collection system changes during the Term of 13 the Contract. Information received by the City shall be subject to existing laws and regulations regarding 14 disclosure, including the Public Records Act, Chapter 42.56 of the Revised Code of Washington. 15 16 4.3.5 Promotion and Education 17 18 The Contractor, at its own cost and at the direction of the City, shall have primary responsibility for 19 developing, designing, executing, and distributing public promotion, education, and outreach programs. 20 The Contractor shall also have primary responsibility for Customer recruitment, providing annual 21 service-oriented information and outreach to Customers, including providing on-site Commercial 22 Recycling and Compostables technical assistance, distributing City-developed promotional and 23 educational pieces at the City’s direction, and implementing on-going recycling promotions, education, 24 and outreach programs at the direction of the City. All written materials, Customer surveys and other 25 general communications provided to Customers by the Contractor shall be approved in advance by the 26 City. Each September, the City and Contractor shall jointly plan the Contractor’s specific promotion and 27 education program for the following year, including adjustments in materials and/or targeted audiences. 28 The City may elect to assist the Contractor with development of promotional material layout and text, as 29 staff time allows, otherwise the Contractor shall be responsible for all design and development work, 30 subject to City approval. 31 32 Each year, the Contractor shall deliver an annual comprehensive service guide to each Single-Family 33 Residential and Multifamily Complex customer which shall include, at a minimum, information on the 34 proper disposal of Garbage, Recyclables, and Compostables; City rates information; disposal options for 35 difficult-to-recycle items and hazardous wastes; collection guidelines; contact information; and any 36 other pertinent information. The service guide may be printed or electronic (e.g. link to a website with a 37 condensed service guide), as the option of the Contractor. 38 39 The Contractor shall contact, at the City’s request, the manager or owner of Multifamily Complex sites 40 to encourage recycling participation, address concerns, space or contamination problems, provide 41 outreach to residents, and inform the manager or owner of all available services and ways to decrease 42 Garbage generation. The Contractor shall coordinate and work cooperatively with City staff and/or 43 consultants hired to conduct outreach and education, and provide technical assistance. 44 45 The Contractor shall, at the City’s request, address concerns, space or contamination problems, and 46 offer additional education or training to tenant businesses. The Contractor’s educational efforts to 47


Commercial Customers shall include offering to perform no-cost waste audits to determine areas that 1 need improvement, developing and covering the cost of stickers or signage for interior collection 2 containers, and delivering Commercial Customer program packets to the Commercial Customers or their 3 tenants, as requested by the Commercial Customer, a commercial tenant, or the City. The Contractor 4 shall coordinate and work cooperatively with City staff and/or consultants hired to conduct outreach 5 and education, and provide technical assistance. 6 7 The Contractor shall, upon the approval of the City and the request of a Commercial Customer or a 8 tenant business, and at the Contractor’s expense, conduct a site visit within one week of the request to 9 review existing services, determine recycling potential, and assess space constraints for additional 10 Containers. 11

12 Any additional promotional, educational, and informational materials provided by the Contractor to 13 Customers in connection with the Contract shall be designed, developed, printed, and delivered by the 14 Contractor, at the Contractor’s cost, and subject to the City’s final written approval as to form, content, 15 and method of delivery. The City shall review and approve all materials and a minimum of a two (2) 16 weeks review period shall be provided in all cases by the Contractor to allow sufficient time for review 17 and approval. 18 19 Outreach to Commercial Customers by the Contractor shall not preclude the City or its consultants from 20 also conducting targeted outreach and technical assistance to encourage waste prevention and 21 recycling. 22 23 4.3.6 Transition to Next Contractor 24 25 The Contractor shall work with the City and any successive contractor in good faith to ensure minimal 26 Customer disruption during the transition period from the City’s previous contractor to the City’s new 27 Contractor. Cart and Container removal and replacement shall be coordinated between the Contractor 28 and a successive contractor to occur simultaneously in order to minimize Customer inconvenience. In 29 the event that the City does not elect to retain the Contractor’s Containers pursuant to Section 4.1.15.3, 30 the Contractor shall remove any Containers for all services or any portion of services provided under this 31 Contract upon sixty (60) days written notice from the City. 32 33 Upon written request of the City at any time during the term of this Contract, the Contractor shall 34 provide a detailed customer list, including customer name, service address, mailing address, and 35 collection and container rental service levels to the City in Microsoft Excel format (or other City-36 approved format) within seven (7) days of the City’s request. 37 38 Failure to fully comply with this Section 4.3.6 shall result in the forfeiture of the Contractor’s 39 performance bond, at the City’s discretion. 40 41 5. COMPENSATION 42 43 5.1 Compensation to the Contractor 44 45 5.1.1 Rates 46 47


The Contractor shall be responsible for billing and collecting funds from Single-family Residence, 1 Multifamily Complex, and Commercial Customers in accordance with the charges for services listed in 2 Exhibit B. The Contractor may reduce or waive at its option, but shall not exceed, the charges listed in 3 Exhibit B. The payment of charges for services listed in Exhibit B by Customers shall comprise the entire 4 compensation due to the Contractor. 5 6 In the event that a Customer places Excluded Materials or Unacceptable Materials in a Container, and 7 the Contractor collects those materials inadvertently and incurs extraordinary expenses dealing with 8 those materials, the Contractor may charge the Customer the actual costs of managing those materials, 9 as approved by the City. Actual costs shall include additional transportation, handling, and disposal 10 costs incurred by the Contractor for handling only those specific materials traceable to that Customer. 11 12 The City is not required under this Contract to make any payments to the Contractor for the Services 13 performed, or for any other reason, except as specifically described in this Contract, or for services the 14 City obtains as a Customer. 15 16 In the event that Contractor or a Customer desires solid waste-related services not specifically 17 addressed in this Contract, the Contractor shall propose service parameters and a rate to the City in 18 writing, based on the an adjacent Contractor WUTC tariff if the Contractor operates in such an area or 19 an average of surrounding WUTC tariffs if the Contractor does not operate in an adjacent WUTC tariff 20 area. Upon the City’s written approval, the Contractor may provide the requested services. In no case 21 shall the Contractor provide unauthorized services or charge unauthorized rates. 22 23 5.1.2 Itemization on Invoices 24 25 All applicable City, County, and Washington State solid waste or household hazardous waste taxes or 26 fees, utility taxes, and (if allowed under the last paragraph of Section 5.1.2) sales taxes shall be itemized 27 separately on Customer invoices and added to the charges listed in Exhibit B, except that the City 28 Administrative Fees shall be included in Exhibit B rates and shall not be itemized separately on Customer 29 invoices. 30 31 All Recyclables collection costs and baseline material revenues for all Customers and Compostables 32 collection costs for the initial Cart provided to Single-Family Residences shall be included in the Garbage 33 collection rates for all Customers and are included in the Customer rates listed in Exhibit B. 34 35 Charges for excess Garbage or Compostables, Single-family, Multifamily Complex and Commercial 36 Compostables collection, Drop-box Container On-call collection services, On-call Bulky Waste collection 37 services, Container rentals, or temporary Container services shall be itemized on the Customer invoices 38 separately by the Contractor, and may at no time exceed the charges set forth in Exhibit B. 39 40 The County disposal fee as it exists on the date of execution or as thereafter modified shall be itemized 41 separately on Customer invoices with charges for Drop-box Container service. The Contractor shall 42 charge Drop-box Customers the actual disposal cost plus five (5) percent to reflect the Contractor’s costs 43 and margin related to handling the pass-through disposal component. 44 45 The Contractor shall not separately charge sales tax for services that include any Container as part of the 46 overall service package. Only Services that separate and itemize optional container rental (specifically 47


Drop-box Container rental) shall have sales tax charged and listed on Customer invoices. The Contractor 1 shall pay appropriate sales tax upon purchase of all equipment and Containers, and those costs are 2 included in the rates provided in Attachment B. In no case shall Customers be separately charged sales 3 taxes paid by the Contractor on its equipment and Containers. 4 5 Except as otherwise expressly provided for by the Contract, the Contractor shall not adjust or modify 6 rates due to employee wage increases, changes in Compostables processing fees, Garbage collection 7 service level shifts, or other changes affecting the collection system. 8 9 5.2 Compensation to the City 10 11 The Contractor shall pay to the City a one-time fee of thirty-five thousand dollars ($35,000) upon 12 Contract execution to cover City costs for procuring this Contract. 13 14 The Contractor shall also pay to the City an Administrative Fee on or before the fifteenth (15th) day of 15 each month during the term of this Contract, starting on November 15, 2019. The Administrative Fee 16 shall be based on the gross revenues received by the Contractor from all Customers under this 17 Agreement, excluding Drop-box disposal fees. The initial Administrative Fee shall be assessed at (x.x%) 18 of gross revenues received by the Contractor from those Customers since the last Administrative Fee 19 payment period, consistent with the administrative fee calculations shown in Exhibit D. The 20 Contractor’s obligations to pay the Administrative Fee shall survive the termination date of this Contract 21 until the Contractor is no longer receiving payments from Customers for services provided under this 22 Contract. 23 24 The rates included in Exhibit B, as modified during the term of this Contract, include the Administrative 25 Fee, and Customers shall not be separately charged an itemized Administrative Fee. Exhibit D contains 26 an example of how the Administrative Fee is included in rates, and lists the Contractor’s service rate, the 27 City’s share of the retail rate, the State excise tax associated with the Administrative Fee, and the 28 combined retail rate. Any adjustments to the Administrative Fee rate shall be calculated in a manner 29 consistent with the example shown in Exhibit D. 30 31 The Contractor shall fully participate with any City billing audit to confirm the Contractor’s Customer 32 receipts during any accounting period during the term of the Contract. The audit shall be confined to 33 confirming Customer billing rates, Contractor receipts for services provided under this Contract and bad 34 debt recovery. 35 36 The City may change the Administrative Fee level in any year, provided that the change is synchronized 37 with the annual Contractor rate modification described in Section 5.3.1. The City shall notify the 38 Contactor of the new Administrative Fee for the following year by September 1st, and the Contractor 39 shall itemize and include the appropriate adjustment in its Rate Adjustment Statement provided 40 October 1st of each year. In the event that the Administrative Fee is adjusted, either up or down, the 41 Contractor shall add or subtract an amount equivalent to the state excise tax (1.5% in 2018), as may be 42 adjusted from time to time by the State of Washington. 43 44 In addition, the Contractor shall be responsible for payment of all applicable permits, licenses, fees and 45 taxes as described in Section 8.10, Permits and Licenses. 46 47


5.3 Compensation Adjustments 1 2 5.3.1 Annual CPI Service Component Modification 3 4 The Contractor’s collection service charges and miscellaneous fees and Contract options contained in 5 Exhibit B, excluding waste disposal fees, for each level of service shall increase each year by one 6 hundred percent (100%) of the annual percentage change in the Consumer Price Index (CPI) for the 7 Seattle-Tacoma-Bellevue Metropolitan Area for the U.S. City Average Urban Wage Earners and Clerical 8 Workers, all items (Revised Series) (CPI-W1982-84=100) prepared by the United States Department of 9 Labor, Bureau of Labor Statistics, or a replacement index. Adjustments shall be based on the twelve (12) 10 month period ending June 30th of the previous year that the request for increase is made. For example, 11 an adjustment to the Contractor’s collection service charge for 2021 will be based on the CPI for the 12 twelve (12) month period ending June 30, 2020. 13 14 In the event that the CPI index series decreases year-to-year, the service component of Contractor rates 15 shall remain unchanged, and the successive year’s adjustment shall be based on the most recent June 16 30th CPI index value which yielded a positive year-to-year adjustment. In the event that the CPI index 17 series increases over five percent (5%) year-to-year, the actual adjustment used shall be capped at six 18 percent (56%), and the successive year’s adjustment shall be based on the most recent June 30th CPI 19 index value. 20

21 Adjustments to the Contractor’s collection service charge shall be made in units of one cent ($0.01). 22 Fractions less than one cent ($0.01) shall not be considered when making adjustments. 23 24 Beginning January 1, 2021, Contractor’s compensation shall be adjusted annually pursuant to this 25 section. The Contractor shall submit in writing and electronic form to the City for review and verification 26 a Rate Adjustment Statement, calculating the new rates for the next year, on or by October 1st of each 27 year, starting October 1, 2020. In the event that the Contractor does not submit a Rate Adjustment 28 Statement by October 1st, the City shall calculate and unilaterally implement a rate adjustment based on 29 the best available information as of October 1st of that year for the applicable period and the Contractor 30 may not appeal this action. On the City’s review and verification, absent any City exception to the 31 Contractor’s calculations, the new rates shall take effect on January 1st of the following year. An example 32 of rate adjustments due to Consumer Price Index changes is provided in Exhibit D. 33 34 5.3.2 Changes in Disposal Fees 35 36 Periodic adjustments shall be made to Contractor collection rates to reflect increases or decreases in 37 County disposal fees for Garbage. In the event of a change in disposal fees, the disposal fee component 38 of rates charged to Customers shall be adjusted, based on percentage increase or decrease in disposal 39 fee applied to the disposal components included in Exhibit B of this Contract. Disposal fee changes shall 40 be effective on the date of the County’s implementation, provided that the Contractor has provided 41 Customers 45-days notification. 42 43 An example of rate modifications due to disposal fee changes is provided in Exhibit D. 44 45 5.3.3 Changes in Disposal or Compostables Processing Sites 46 47


If the Contractor is required by the City or other governmental authority to use Garbage disposal or 1 Compostables processing sites other than those being used at the initiation of this Contract, the 2 Contractor shall submit a detailed proposal for the adjustment of the rates to reflect any additional cost 3 or savings to the Contractor. It is intended that the Contractor’s rates pursuant to this Contract in such a 4 case will be adjusted so as to pass through any resulting additional costs incurred by the Contractor to 5 the Contractor or any additional savings to the Contractor to the City. The City and Contractor agree to 6 negotiate in good faith to make any changes to the rates to accomplish a pass-through of any such costs 7 or savings. 8 9 If the Contractor is no longer be able to find a processing site for all collected Compostables, after a 10 good faith effort to locate a processing facility acceptable to the City, the City reserves the right to drop 11 the collection of affected components of Compostables, such as Food Scraps, from the Contract and the 12 City and the Contractor shall negotiate rate reduction in good faith to reflect the reduction in service. If 13 the Contractor is subsequently able to find a processing site for Compostables or the site that was 14 originally used for processing Compostables is able to resume taking the dropped materials, the City 15 reserves the right to reinstate the collection of those materials and to reverse the previously agreed rate 16 reduction for the reduction in service. 17 18 5.3.4 Recycling Market Adjustments 19 20 Note to reviewers: This section will not be completed until the final RFP is issued. A potential 21 commodity adjustment approach discussion paper has been included with the industry review materials 22 and welcomes comments on that approach as part of the industry review process. Alternative ideas 23 may also be presented in industry review comments, provided that they meet the objectives included in 24 the discussion paper.is still under review and will be addressed via RFP addendum. 25

5.3.5 New or Changes in Existing Taxes 26 27 If new municipal, county, regional, or Washington State taxes or fees are imposed, the rates of existing 28 taxes (other than federal taxes) or fees are changed, or new road or bridge tolls necessarily affecting the 29 Contractor’s operations under this Contract imposed after the Date of Execution of this Contract, and 30 the impact of these changes results in increased or decreased Contractor costs in excess of five 31 thousand dollars ($5,000) in the aggregate annually, the Contractor shall submit a detailed proposal for 32 the adjustment of the rates to reflect any additional costs or savings to the Contractor. It is intended 33 that the Contractor’s rates pursuant to this Contract in such a case be adjusted so as to pass through any 34 resulting additional costs incurred by the Contractor to the Contractor or any savings realized to the 35 Contractor to the City. The Contractor and City shall enter into good faith negotiations to determine 36 whether compensation adjustments are appropriate for the amount exceeding the five thousand dollar 37 ($5,000) aggregated threshold (in cases in which the threshold applies) and if so, to determine the 38 amount and the method of adjustment. 39

5.3.6 Changes in Service Provision 40 41 In the event that either the Contractor initiates any changes in how Contract services are provided that 42 reduce Contractor costs and cause adverse Customer impacts, the Contractor shall promptly notify the 43 City in writing of such reduced costs, and rates shall be reduced within thirty (30) days of the subject 44 change so that the City and the Contractor’s Customers shall receive the benefit of fifty percent (50%) of 45


the cost savings. Contractor changes in how Contract services are provided that do not adversely affect 1 Customers shall not affect Customer rates. 2 3 5.4 Change in Law 4 5 Except to the extent addressed otherwise in this Contract, changes in federal, state, or local laws or 6 regulations that result in a detrimental change in circumstances or a material hardship for the 7 Contractor in performing this Contract may be the subject of a request by the Contractor for a rate 8 adjustment, subject to review and approval by the City, such approval not to be unreasonably withheld. 9 If the City requires review of financial or other information in conducting its rate review under this 10 provision, then the City may retain a third-party to review such information at the Contractor’s expense, 11 taking whatever steps are reasonably feasible, appropriate and lawful to protect the Contractor’s 12 documents identified as confidential and proprietary by the Contractor. 13 14 6. FAILURE TO PERFORM, REMEDIES, TERMINATION 15 16 The City expects high levels of Customer service and collection service provision. Performance failures 17 shall be discouraged, to the extent possible, through specific performance fees for certain infractions 18 and through Contract default for more serious lapses in service provision. Section 6.1 details infractions 19 subject to performance fees and Section 6.2 details default provisions and procedures. 20 21 6.1 Performance Fees 22 23 The City reserves the right to make periodic, unscheduled inspection visits to determine the Contractor’s 24 compliance with the provisions and requirements of this Contract. In the event that the City’s inspection 25 reveals that the Contractor has failed to satisfactorily perform any duties of this Contract, the City shall 26 present an incident report to the Contractor detailing such unsatisfactory performance. The Contractor 27 and the City agree that upon receiving such report, the Contractor shall pay the following dollar 28 amounts, not as a penalty, but as performance fees for failure to satisfactorily perform its duties under 29 this Contract. The City and the Contractor agree that the City’s damages would be difficult to prove in 30 any litigation and that these dollar amounts are a reasonable estimate of the damages sustained by the 31 City as a result of the Contractor's failure to satisfactorily perform its duties under this Contract. The 32 performance fees in this Section 6.1 shall not apply to the service impacts of Labor Disruptions, as 33 separate performance fees shall apply under those circumstances, as described in Section 4.2.10. 34 35 Performance fees shall include: 36 37

Action or Omission Performance fees 1 Collection before or after the times specified in Section 4.1.3,

except as expressly permitted in writing. Five hundred dollars ($500) per incident (each vehicle on each route is a separate incident).

2 Repetition of complaints on a route after notification, including, but not limited to, failure to replace Containers in designated locations, spilling, not closing gates, not replacing lids, crossing planted areas, or similar violations.

Fifty dollars ($50) per incident, not to exceed five hundred dollars ($500) per vehicle per day.

3 Failure to clean-up or collect leaked or spilled materials and/or failure to notify the City within three (3) hours of

The cost of cleanup to the City, plus five hundred dollars ($500)


Action or Omission Performance fees incident.

per incident.

4 Observed leakage or spillage from Contractor vehicles or of vehicle contents.

Five hundred dollars ($500) per vehicle, per inspection, plus clean-up costs (and potential code fines/penalties).

5 Failure to replace a leaking Container within one business day twenty-four (24) hours of notification.

One hundred dollars ($100) per incident, and then one hundred dollars ($100) per day that the Container is not replaced.

6 Failure to collect missed materials within one (1) business day after notification.

Fifty dollars ($50) per incident to a maximum of five hundred dollars ($500) per vehicle per day.

7 Missed collection of a block segment of Single-Family Residences (excluding collections prevented by inclement weather, but not excluding collections prevented by inoperable vehicles). A block segment is defined as one side of a street, between cross-streets, not to exceed fifty (50) houses.

Two hundred fifty dollars ($250) per block segment if collection is performed the following day; one thousand dollars ($1,000) if not collected by the following day.

8 Collection as Garbage of non-contaminated Source-separated Recyclables, Yard Debris, or Compostables in clearly identified containers, bags, or boxes.

One thousand- dollars ($1,000) per incident.

9 Rejection of Garbage, Recyclables, Yard Debris or Compostables without providing documentation to the Customer of the reason for rejection.

One hundred dollars ($100) per incident.

10 Failure to deliver Containers within three (3) days of request to Multifamily Complex or Commercial Customers requesting service after the Date of Commencement of Service.

One hundred dollars ($100) per incident.

11 Failure to deliver Garbage, Recyclables or Compostables Containers within seven (7) days of request to Single-Family Residence Customers requesting service after the Date of Commencement of Service.

Twenty-five dollars ($25) per incident.

12 Misrepresentation by Contractors in records or reporting. Five thousand dollars ($5,000) per incident.

13 Failure to provide the required annual report on time. Five hundred dollars ($500) per day past deadline.

14 Failure to maintain clean, sanitary and properly painted Containers,

Fifty dollars ($50) per incident, up to maximum of one thousand dollars ($1,000) per inspection.

15 Failure to maintain contract-compliant vehicles Fifty dollars ($50) per incident, up to maximum of one thousand dollars ($1,000) per inspection.

16 Failure to meet Customer service answer and on-hold time performance requirements.

One hundred dollars ($100) per day.


Action or Omission Performance fees 17 Failure to meet the service and performance standards listed

in Section 4.3.2 of this Contract for a period of two (2) consecutive months.

Two hundred and fifty dollars ($250) per day until the service standards listed in Section 4.3.2 are met for ten (10) consecutive business days.

18 Failure to ensure that all Customers have contract compliant Garbage, Recycling and Compostables Containers on or before the Date of Commencement of Service.

Five thousand dollars ($5,000) per day, plus twenty-five dollars ($25) per Container for each incident occurring after the Date of Commencement of Service.

19 Failure to include city-authorized instructional/ promotional materials when Garbage, Recycling, and/or Compostables Containers are delivered to Single-Family Residences, or failure to affix required city-authorized stickers on Containers.

Fifty dollars ($50) per incident, with no maximum.

20 Failure to separate collection of materials from Service Area Customers from non-service area customers.

Five thousand dollars ($5,000) per route per day.

21 Failure to properly use an authorized switchable placard or nameplates as described in Section 4.1.13.

One hundred dollars ($100) per placard per vehicle per day.

22 Inability to reach the Contractor’s staff via the emergency telephone number.

Two hundred-fifty dollars ($250) per incident.

23 The use of outdated, or unauthorized stickers, or lack of required stickers on Contractor provided Containers.

Fifty dollars ($50) per Container.

34 Failure to have correct rates for all Customer sectors and service levels listed on the Contractor’s website.

Two hundred-fifty dollars ($250) per day, with no maximum.

1 Nothing in this Section shall be construed as providing an exclusive list of the acts or omissions of the 2 Contractor that shall be considered violations or breaches of the Contract, and the City reserves the 3 right to exercise any and all remedies it may have with respect to these and other violations and 4 breaches. The performance fees schedule set forth here shall not affect the City’s ability to terminate 5 this Contract as described in Section 6.2. 6 7 Performance fees, if assessed during a given month, shall be invoiced in writing by the City to the 8 Contractor. The Contractor shall be required to pay the City the invoiced amount within thirty (30) days 9 of billing. Failure to pay performance fees shall be considered a breach of this Contract, and shall accrue 10 penalty charges of eight percent (8.0%) per month of the amount of any delinquent payments. 11 12 Any performance fees assessed against the Contractor may be appealed by the Contractor to the City 13 within ten (10) days of being invoiced for assessed performance fees. The Contractor shall be allowed to 14 present evidence as to why the amount of the assessed performance fees should be lessened or 15 eliminated, including the provision of incorrect information provided by a previous contractor for 16 contract failures during the initial transition period. The City’s decision shall be final and not subject to 17 appeal. 18 19


6.2 Contract Default 1 2 The Contractor shall be in default of this Contract if it violates any material provision of this Contract. In 3 addition, the Contractor shall be in default of the Contract should any of the following occur, including, 4 but not limited to: 5 6

1. The Contractor fails to commence the collection of Garbage, Recyclables, or Compostables, or 7 fails to provide any portion of service under the Contract on the Date of Commencement of 8 Service, or for a period of more than five (5) consecutive days at any time during the term of this 9 Contract, except as provided pursuant to Section 4.1.19; 10

11 2. The Contractor fails to obtain and maintain any permit, certification, authorization, or license 12

required by the City, County, or any federal, State, or other regulatory body in order to collect 13 materials under this Contract, or comply with any environmental standards and regulations; 14

15 3. The Contractor’s noncompliance creates a hazard to public health or safety or the environment; 16

17 4. The Contractor causes uncontaminated Recyclables or Compostables to be disposed of in any 18

way, such as in a landfill or incinerated at an incinerator or energy recovery facility, without the 19 prior written permission of the City; 20

21 5. The Contractor fails to make any required payment to the City, as specified in this Contract; 22 23 6. The Contractor is assessed performance fees pursuant to Section 6.1 in excess of fifteen 24

thousand dollars ($15,000) during any consecutive six (6) month period; or 25 26

7. The Contractor fails to resume full service to Customers within twenty-one days following the 27 initiation of a labor disruption pursuant to Section 4.1.19. 28

29 The City reserves the right to pursue any remedy available at law or in equity for any default by the 30 Contractor. In the event of default, the City shall give the Contractor ten (10) days prior written notice of 31 its intent to exercise its rights, stating the reasons for such action. However, if an emergency shall arise 32 (including but not limited to a hazard to public health or safety or the environment) that does not allow 33 ten (10) days prior written notice, the City shall immediately promptly notify the Contractor of its intent 34 to exercise its rights immediately. If the Contractor cures the stated reason within the stated period, or 35 initiates efforts satisfactory to the City to remedy the stated reason and the efforts continue in good 36 faith, the City may opt to not exercise its rights for the particular incident. If the Contractor fails to cure 37 the stated reason within the stated period, or does not undertake efforts satisfactory to the City to 38 remedy the stated reason, then the City may at its option terminate this Contract effective immediately. 39 40 If Contractor abandons or violates any material provision of this Contract, fails to fully and promptly 41 comply with all its obligations, or fails to give any reason satisfactory to the City for noncompliance, and 42 fails to correct the same, the City, after the initial ten (10) days’ notice, may then declare the Contractor 43 to be in default of this Contract and notify the Contractor of the termination of this Contract. A copy of 44 said notice shall be sent to the Contractor and surety on the Contractor’s performance bond. Upon 45 receipt of such notice, the Contractor agrees that it shall promptly discontinue the services provided 46 under this Contract. The surety of the Contractor’s performance bond may, at its option, within ten (10) 47


days from such written notice, assume the services provided under this Contract that the City has 1 ordered discontinued and proceed to perform same, at its sole cost and expense, in compliance with the 2 terms and conditions of the Contract, and all documents incorporated herein. 3 4 In the event that the surety on the Contractor’s performance bond fails to exercise its option within the 5 ten (10) day period, the City may complete the Services provided under this Contract or any part 6 thereof, either through contract with another party or any other means. 7 8 The City shall be entitled to recover from Contractor and the surety on Contractor’s performance bond 9 as damages all expenses incurred, including reasonable attorneys’ fees, together with all such additional 10 sums as may be necessary to complete the services provided under this Contract, together with any 11 further damages sustained or to be sustained by the City. A surety performing under this Contract shall 12 be entitled to payment in accordance with this Contract for Contract services provided by the surety, 13 and shall otherwise be subject to the same rights and obligations with respect to the Contract services 14 furnished by the surety as would be applicable if the Contract services were to be performed by the 15 Contractor. The City’s obligation to pay for such Contract services shall be subject to satisfactory 16 performance by the surety as well as to setoffs or recoupments for sums, if any, owed by Contractor to 17 City on account of Contractor’s abandonment or default. 18 19 If the City employees provide Garbage, Recyclables or Compostables collection, the actual incremental 20 costs of city labor, overhead, and administration shall serve as the basis for a charge to the Contractor 21 and the surety on the Contractor’s performance bond. 22 23 24 7. NOTICES 25 26 All notices required or contemplated by this Contract shall be in writing and personally served or mailed 27 (postage-prepaid and return receipt requested), addressed to the parties as follows, or as amended by 28 the City: 29 To the City: 30 City Manager 31 City of Mercer Island 32 9611 SE 36th Street 33 Mercer Island, WA 98040 34 35 Copy to the Public Works Director 36 (same address as above) 37 38 To Contractor: 39 40 41 42 43 44 8. GENERAL TERMS 45 46


8.1 Collection Right 1 2 Throughout the Contract Term, the Contractor shall be the exclusive provider with which the City shall 3 contract to collect Garbage, Compostables and Recyclables placed in designated Containers and set out 4 in the regular collection locations within the City Service Area subject to this Contract. When asked by 5 the Contractor, the City shall make a good faith effort to protect the exclusive rights of the Contractor 6 under this Contract; however, the City shall not be obligated to instigate, join in or contribute to the 7 expense of litigation to protect the exclusive rights of the Contractor unless the City’s institution of or 8 joinder in such litigation is necessary for the protection of such rights. The Contractor may 9 independently enforce its rights under this Contract against third party violators, including, but not 10 limited to, seeking injunctive relief, and the City shall use good faith efforts to cooperate in such 11 enforcement actions brought by the Contractor (without obligating the City to join any such litigation, 12 except for as provided in this paragraph). Such efforts may include but not be limited to cease and 13 desist letters, assistance with documenting violations, and other activities as City staff time reasonably 14 allows. 15 16 This Contract provision shall not apply to Garbage, Recyclables, or Compostables self-hauled by the 17 generator; to Source-separated materials hauled by common or private carriers (including drop-off 18 recycling sites); or to construction/demolition waste hauled by self-haulers or construction or 19 demolition contractors in the normal course of their business. 20 21 The Contractor shall retain the right and cover all costs to dispose of or process and market the Garbage, 22 Recyclables, and Compostables once these materials are placed in Contractor-provided or the City -23 owned containers. The Contractor shall retain revenues gained from the sale of Recyclables or 24 Compostables. Likewise, a tipping or acceptance fee charged for Recyclables or Compostables shall be 25 the financial responsibility of the Contractor. 26 27 8.2 Access to Records 28 29 The Contractor shall maintain in its local office full and complete operations, Customer, financial, and 30 service records that at any reasonable time shall be open for inspection and copying for any reasonable 31 purpose by the City. In addition, the Contractor shall, during the Contract term, and at least seven (7) 32 years thereafter, maintain in an office in King County reporting records and billing records pertaining to 33 the Contract that are prepared in accordance with Generally Accepted Accounting Principles, reflecting 34 the Contractor’s services provided under this Contract. Those Contractor’s accounts shall include, but 35 shall not be limited to, all records, invoices, and payments under the Contract, as adjusted for additional 36 and deleted services provided under this Contract. The City shall be allowed access to these records for 37 audit and review purposes, subject to the same protections of the Contractor’s financial or other 38 proprietary information set forth in Section 5.3. 39 40 The Contractor shall make available copies of certified weight slips for Garbage, Recyclables, and 41 Compostables on request within two (2) business days of the request. The weight slips may be 42 requested for any period during the Term of this Contract. 43 44 8.3 Insurance 45 NOTE TO PROPONENTS: The City understands that various companies have different insurance 46 arrangements and possibly have partial self-insurance. The insurance terms in the executed can be 47


adjusted to match the specifics of a particular firm’s arrangements, provided that the underlying 1 amounts, scope and overall coverage are consistent with this section, the coverage is occurrence-based, 2 and that the City’s Risk Manager approves the changes at his/her sole option. 3 4 The Contractor shall procure and maintain, for the Term of the Contract, insurance that meets or 5 exceeds the coverage set forth below, as determined in the sole reasonable discretion of the City. The 6 cost of such insurance shall be paid by the Contractor. 7 8 Contractor’s maintenance of insurance as required by this Contract shall not be construed to limit the 9 liability of the Contractor to the coverage provided by such insurance, or otherwise limit the City’s 10 recourse to any remedy available at law or in equity. 11

8.3.1 Minimum Scope of Insurance 12 13 The Contractor shall obtain insurance that meets or exceeds the following of the types described below: 14 15

1. Automobile Liability insurance covering all owned, non-owned, hired, and leased vehicles. 16 Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form 17 providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide 18 contractual liability coverage. The policy shall include the ISO CA 9948 Form (or its equivalent) 19 for transportation of cargo and a MCS 90 Form in the amount specified in the Motor Carrier Act. 20 The policy shall include a waiver of subrogation in favor of the City. The City shall be named as 21 an additional insured under the Contractor’s Automobile Liability insurance policy. 22

23 2. Commercial General Liability insurance shall be written on ISO occurrence form CG 00 01, or a 24

substitute form providing equivalent liability coverage and shall cover liability arising from 25 premises, operations, independent contractors, products-completed operations, personal injury 26 and advertising injury, and liability assumed under an insured contract. There shall be no 27 endorsement or modification of the Commercial General Liability insurance for liability arising 28 from explosion, collapse, or underground property damage. The City shall be named as an 29 additional insured under the Contractor’s Commercial General Liability insurance policy with 30 respect to the work performed for the City, using ISO additional insured endorsements CG 2010 31 0704 and CG 2037 0704. 32

33 3. Workers’ Compensation coverage as required by the Industrial Insurance laws of the State of 34

Washington. 35 36

4. Contractor’s Pollution Liability insurance coverage covering any claim for bodily injury, personal 37 injury, property damage, cleanup costs, and legal defense expenses applying to all work 38 performed under the contract, including that related to transported cargo. The City shall be 39 named as an additional insured under the Contractor’s Pollution Liability insurance policy. 40


1 8.3.2 Minimum Amounts of Insurance 2 3 Contractor shall maintain at a minimum the following insurance limits: 4 5

1. Automobile Liability insurance with a minimum combined single limit for bodily injury and 6 property damage of five million dollars ($5,000,000) for each accident. Limits may be achieved 7 by a combination of primary and umbrella policies. 8

9 2. Commercial General Liability insurance shall be written with limits no less than three million 10

dollars ($3,000,000) for each occurrence, five million dollars ($5,000,000) general aggregate, 11 and a two million dollar ($2,000,000) products-completed operations aggregate limit. Limits 12 may be achieved by a combination of primary and umbrella policies. 13 14

3. Workers’ Compensation coverage as required by the Industrial Insurance laws of the State of 15 Washington. 16

17 4. Contractor’s Pollution Liability insurance shall be written with limits no less than five million 18

dollars ($5,000,000) combined single limit for each pollution condition for bodily injury, personal 19 injury, property damage, cleanup costs, and legal defense expense. 20

21 8.3.3 Other Insurance Provisions 22 23 The insurance policies are to contain, or be endorsed to contain, the following provisions for Automobile 24 Liability, Commercial General Liability, and Contractor’s Pollution Liability coverage: 25 26

1. The Contractor’s insurance coverage shall be the primary insurance with respect to the City, its 27 officials, employees, and volunteers. Any insurance, self-insurance, or insurance pool coverage 28 maintained by the City shall be in excess of the Contractor’s insurance and shall not contribute 29 with it. The City, its officials, employees, agents, and volunteers shall be named as additional 30 insured’s on the Contractor’s Automobile Liability, Commercial General Liability, and Pollution 31 Liability insurance policies, via blanket-form endorsement. 32

33 2. Coverage shall state that the Contractor’s insurance shall apply separately to each insured 34

against whom claim is made or suit is brought, except with respect to the limits of the insurer’s 35 liability. 36

37 3. Each insurance policy required by the insurance provisions of this Contract shall provide the 38

required coverage and shall not be canceled except after thirty (30) days prior written notice has 39 been given to the City. Such notice shall be sent directly to the City. If any insurance company 40 refuses to provide the required notice, the Contractor or its insurance broker shall notify the 41 City of any cancellation of any insurance immediately on receipt of insurers’ notification to that 42 effect. 43

44 8.3.4 Acceptability of Insurers 45 46 Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII. 47


1 8.3.5 Verification of Coverage 2 3 The Contractor shall furnish the City’s Risk Manager and City Attorney Department with original 4 certificates and a copy of the blanket-form amendatory endorsements as required herein, including, but 5 not necessarily limited to, the additional insured endorsement, evidencing the insurance requirements 6 of the Contractor at least a month before the Date of Commencement of Service of this Contract. 7 8 8.3.6 Subcontractors 9 10 The Contractor shall include all subcontractors as insured under its policies or shall furnish separate 11 certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject 12 to all of the same insurance requirements as stated herein for the Contractor, including the requirement 13 that the City, its officials, employees, and volunteers be named additional insured’s on the Contractor’s 14 insurance policy and shall provide applicable endorsements in a form acceptable and approved by the 15 City. 16 17 8.4 Performance Bond 18 19 The Contractor shall provide and maintain at all times a valid Contractor’s Performance and Payment 20 Bond or bonds in a form acceptable and approved by the City in the amount of seven hundred fifty 21 thousand dollars ($750,000). The bond(s) shall be issued for a period of not less than one (1) year, and 22 the Contractor shall provide new bond(s) to the City no less than sixty (60) calendar days prior to the 23 expiration of the bond(s) then in effect. The City shall have the right to call the bond(s) in full in the 24 event its renewal is not confirmed prior to five (5) calendar days before its expiration. 25 26 8.5 Indemnification 27 28

8.5.1 Indemnify and Hold Harmless1. Contractor shall indemnify, defend, protect, and hold 29 harmless the City, its elected and appointed officials, officers, employees, representatives and agents, 30 from any and all third party claims or suits, and any damages, costs, judgments, awards or liability 31 resulting from such claims or suits, (a) for injury or death of any person or damage to property to the 32 extent the same is caused by the actual or alleged negligent acts or omissions, or willful misconduct, of 33 Contractor, its agents, servants, representatives, officers, or employees in the performance of this 34 Contract and any rights granted hereunder, or b) to the extent such claim or demand is caused by 35 Contractor’s unlawful release of Hazardous Waste in violation of any Environmental Law in its 36 performance of Services and exercise of any rights granted hereunder. This indemnity under subsection 37 8.5.1.(1)(b) includes each of the following to the extent the same is caused by Contractor’s unlawful 38 release of Hazardous Substances in violation of applicable Environmental Laws: (i) liability for a 39 governmental agency’s costs of removal or remedial action for such release by Contractor of Hazardous 40 Waste; (ii) damages to natural resources caused by Contractor’s release of Hazardous Waste, including 41 reasonable costs of assessing such damages; (iii) liability for any other person’s costs of responding to 42 such release by Contractor of Hazardous Waste; and (iv) liability for any costs of investigation, 43 abatement, correction, cleanup, fines, penalties, or other damages arising under any Environmental 44 Laws that are caused by Contractor’s release of Hazardous Waste. Provided, however, such 45 indemnification shall not extend to any portion of any claims, demands, liability, loss, cost, damage or 46 expense of any nature whatsoever including all costs and attorneys’ fees caused by the willfully tortious, 47


or negligent acts or omissions of the City, its agents, employees, official, officers, contractors or 1 subcontractors. 2 3

2. In the event any claim for such damages be presented to or filed with the City, the City shall 4 promptly notify Contractor thereof, and Contractor shall have the right, at its election and at its sole cost 5 and expense, to settle and compromise such claim, provided further, that in the event any suit or action 6 is filed against the City based upon any such claim or demand, the City shall likewise promptly notify 7 Contractor thereof, and Contractor shall have the right, at its election and its sole cost and expense, to 8 settle and compromise such suit or action, or defend the same at its sole cost and expense, by attorneys 9 of its own election. The indemnification obligations set forth herein shall extend to claims which are not 10 reduced to a suit and any claims which may be compromised, with Contractor’s written consent, prior to 11 the culmination of any litigation or the institution of any litigation. The City has the right to defend or 12 participate in the defense of any such claim at its own cost and expense, provided that Contractor shall 13 not be liable for such settlement of other compromise unless it has consented thereto in writing. 14 15

The provisions contained herein have been mutually negotiated by the Parties. Solely to the 16 extent required to enforce the indemnification provisions of this Section 8.5.1, Contractor waives its 17 immunity under Title 51 RCW, Industrial Insurance; provided, however, the foregoing waiver shall not in 18 any way preclude Contractor from raising such immunity as a defense against any claim brought against 19 Contractor by any of its employees. 20 21

Inspection or acceptance by the City of any Services performed under this Contract shall not be 22 grounds for avoidance of any of these covenants of indemnification. Said indemnification obligations 23 shall extend to claims which are not reduced to a suit and any claims which may be compromised, with 24 Contractor’s prior written consent, prior to the culmination of any litigation or the institution of any 25 litigation. 26 27 The provisions of this section shall survive the termination or expiration of this Contract. 28 29 8.6 Confidentiality of Information 30 31 Pursuant to the Washington Public Records Act (“PRA”), chapter 42.56 RCW, public records, as defined 32 by the PRA may be subject to disclosure upon request by any person, unless the documents are exempt 33 from public disclosure by a specific provision of law. 34 35 If the City receives a request for inspection or copying of any such documents, it shall promptly notify 36 the Contractor in writing regarding the public records request. The City will give the Contractor ten (10) 37 business days after such notification within which to obtain a court order prohibiting the release of the 38 documents. The City assumes no contractual obligation to enforce any exemption under the PRA. 39 40 8.7 Assignment of Contract 41 42 8.7.1 Assignment or Pledge of Money by the Contractor 43 44 The Contractor shall not assign or pledge any of the money due under this Contract without securing the 45 prior written approval of the surety of the Contractor’s performance bond and providing at least thirty 46 (30) day’s prior written notice to the City of such assignment or pledge together with a copy of the 47


surety’s approval thereof. Such assignment or pledge, however, shall not release the Contractor or its 1 sureties from any obligations or liabilities arising under or because of this Contract. The requirements of 2 this section shall not apply to the grant of a general security interest in the Contractor’s assets to secure 3 the Contractor’s obligations under any loan or credit facility entered into by the Contractor or the 4 Contractor’s parent. 5 6 8.7.2 Assignment, Subcontracting, Delegation of Duties 7 8 The Contractor shall not assign or sub-contract any of the services provided under this Contract or 9 delegate any of its duties under this Contract without the prior written approval of the City, which may 10 be granted or withheld in the City’s sole discretion. 11 12 In the event of an assignment, sub-contracting, or delegation of duties, the Contractor shall remain 13 responsible for the full and faithful performance of this Contract and the assignee, subcontractor, or 14 other obligor shall also become responsible to the City for the satisfactory performance of the services 15 to be provided under this Contract. The City may impose conditions of approval on any such assignment, 16 subcontracting, or Change of Control, including but not limited to requiring the delivery by the assignee, 17 subcontractor, or other obligor of its covenant to the City to fully and faithfully complete the services to 18 be provided under this Contract or responsibilities undertaken. In addition, the assignee, subcontractor, 19 or obligor shall sign a separate statement agreeing to abide by all terms and conditions of this Contract. 20 The City may terminate this Contract if the assignee, subcontractor, or obligor does not comply with this 21 clause. 22 23 For the purposes of this Contract, any change of control of the Contractor shall be considered an 24 assignment subject to the requirements of this section. Nothing herein shall preclude the City from 25 executing a novation, allowing the new ownership to assume the rights and duties of the Contract and 26 releasing the previous ownership of all obligations and liability. 27 28 8.7.3 Change of Trade Name 29 30 In the event the Contractor wishes to change the trade name under which it does business under this 31 Contract, the Contractor shall provide the name, logo, and colors under which it will be doing business in 32 writing to the City at least thirty (30) days prior to the effective date of its change of trade name. Within 33 a reasonable period following a change of trade name by the Contractor, all items, logos, articles, and 34 implements seen by the public shall be changed, including but not limited to letterhead, signs, 35 promotional materials, website pages, billing statements, envelopes, and other items. Vehicles are the 36 only exception; vehicles must be repainted with new trade name, and any new logo or colors, within 37 two (2) years of the effective date of the change of trade name. Failure to comply with the terms of this 38 section shall result in penalties assessed against the Contractor in accordance with Section 6.1. 39 40 8.8 Laws to Govern/Venue 41 42 This Contract shall be governed by the laws of the State of Washington both as to interpretation and 43 performance. Venue shall be in Superior Court in the State of Washington for King County. 44 45 8.9 Compliance with Applicable Laws and Regulations 46 47


The Contractor shall comply with all federal, state, and local regulations and ordinances applicable to 1 the work to be done under this Contract. Any violation of the provisions of this section shall be 2 considered a violation of a material provision of this Contract and shall be grounds for cancellation, 3 termination, or suspension of the Contract by the City, and may result in ineligibility for further work for 4 the City. 5 6 The Contractor agrees not to discriminate against any employee or applicant for employment or any 7 other persons in the performance of this Contract because of race, religion, creed, color, national origin, 8 marital status, gender, age, disability, sexual orientation, gender identity, or other circumstances as may 9 be defined by federal, state, or local law or ordinance, except for a bona fide occupational qualification. 10 Without limiting the foregoing, Contractor agrees to comply with the provisions of the Affidavit of Equal 11 Opportunity & Title VI Compliance requirements incorporated herein by this reference. The Contractor 12 agrees to post in conspicuous places, available to employees and applicants for employment, notices to 13 be provided by the Contractor setting forth the provisions of this nondiscrimination clause. 14 15 Conditions of the Federal Occupational Safety and Health Act of 1970 (OSHA), the Washington Industrial 16 Safety and Health Act of 1973 (WISHA), and standards and regulations issued under these Acts from 17 time-to-time must be complied with, including ergonomic and repetitive motion requirements. The 18 Contractor must indemnify and hold harmless the City from all damages, injuries or losses assessed for 19 the Contractor’s failure to comply with the Acts and Standards issued therein. The Contractor is also 20 responsible for meeting all local, state, and federal health and environmental regulations and standards 21 applying to the operation of the collection and processing systems used in the performance of this 22 Contract. 23 24 The Contractor is specifically directed to observe all weight-related laws and regulations in the 25 performance of these services, including axle bridging and loading requirements. 26 27 8.10 Permits and Licenses 28 29 The Contractor and subcontractors shall secure a City business license and pay all fees and taxes levied 30 by the City. The Contractor shall obtain all permits, certifications, authorizations, and licenses necessary 31 to provide the services required herein prior to the Date of Execution of this Contract at its sole expense. 32 33 The Contractor shall be solely responsible for all taxes, fees, and charges incurred, including, but not 34 limited to, license fees and all federal, state, regional, county, and local taxes and fees, including income 35 taxes, property taxes, permit fees, operating fees, surcharges of any kind that apply to any and all 36 persons, facilities, property, income, equipment, materials, supplies, or activities related to the 37 Contractor’s activities under the Contract, business and occupation taxes, workers’ compensation, and 38 unemployment benefits. 39 40 8.11 Relationship of Parties 41 42 The City and Contractor intend that an independent contractor relationship shall be created by this 43 Contract. The implementation of services shall lie solely with the Contractor. No agent, employee, 44 servant, or representative of the Contractor shall be deemed to be an employee, agent, servant, or 45 representative of the City. 46 47


8.12 Contractor’s Relationship with Customers 1 2 The Contractor shall not separately contract with Customers for any services covered under this 3 Contract; however, the Contractor may negotiate separate agreements with Customers for the sole 4 purpose of compactor leasing, payment for recyclables, or other related services only when not included 5 in this Contract, provided that Customers are provided separate invoices for those services and that the 6 Contractor makes it clear to Customers that those services are not provided under this Contract. These 7 separate agreements must be in writing and shall in no way expressly or by application supersede this 8 Contract. The Contractor agrees these separate agreements shall not contain durations any longer than 9 the final date of this Contract’s Term. The Contractor shall provide to the City a detailed list of all such 10 separate agreements with Customers upon the City’s request. The City may, at its sole option, regulate 11 similar or identical services in the successor to this contract. 12 13 8.13 Bankruptcy 14 15 It is agreed that if an order for relief with respect to the Contractor is entered in any bankruptcy case, 16 either voluntarily or involuntarily, in which the Contractor is a debtor, then this Contract, at the option 17 of the City, may be terminated effective on or after the day and time the order for relief is entered. 18 19 8.14 Right to Renegotiate/Amend 20 21 The City shall retain the right to renegotiate this Contract or negotiate contract amendments at its 22 discretion or based on policy changes, state statutory changes, or County rule changes, Washington 23 State, or federal regulations regarding issues that materially modify the terms and conditions of the 24 Contract, including but not limited to any modifications to contracting terms or policies as they relate to 25 County disposal services. The City may also renegotiate this Contract should any Washington State, 26 County, or city rate or fee associated with the Contract be held illegal or any increase thereof be 27 rejected by voters. In addition, the Contractor agrees to renegotiate in good faith with the City in the 28 event the City wishes to change disposal locations or add additional services or developments, such as 29 those identified through a pilot program under Section 4.1.17, to the Contract and to provide full 30 disclosure of existing and proposed costs and operational impacts of any proposed changes. 31 32 This Contract may be amended, altered, or modified only by a written amendment or addendum 33 executed by authorized representatives of the City and the Contractor. 34 35 8.15 Force Majeure 36 37 Provided that the requirements of this section are met, Contractor shall not be deemed to be in default 38 and shall not be liable for failure to perform under this Contract if Contractor’s performance is 39 prevented or delayed by Acts of Nature, including landslides, lightning, forest fires, storms, floods, 40 freezing and earthquakes, terrorism, civil disturbances, acts of the public enemy, wars, blockades, public 41 riots, explosions, governmental restraint or other causes, whether of the kind enumerated or otherwise, 42 that are not reasonably within the control of the Contractor, and are not the result of the willful or 43 negligent act, error or omission of the Contractor; and that could not have been prevented by the 44 Contractor through the exercise of reasonable diligence (“Force Majeure”). The Contractor’s obligations 45 under this Contract shall be suspended, but only with respect to the particular component of obligations 46 affected by the Force Majeure and only for the period during which the Force Majeure exists. 47


1 The following events do not constitute Force Majeure: strikes, other than nationwide strikes or strikes 2 that by virtue of their extent or completeness make the particular goods or services effectively 3 unavailable to the Contractor; work stoppages or other labor disputes or disturbances occurring with 4 respect to any activity performed or to be performed by the Contractor; accidents to machinery, 5 equipment or materials; unavailability of required materials or disposal restrictions; or general economic 6 conditions. 7 8 If as a result of a Force Majeure event, Contractor is unable wholly or partially to meet its obligations 9 under this Contract, the Contractor shall notify the City by telephone and email, on or promptly after the 10 Force Majeure is first known, followed within seven (7) days by a written description of the event and 11 cause thereof to the extent known; the date the event began, its estimated duration, the estimated time 12 during which the performance of the Contractor’s obligations will be delayed; the likely financial impact 13 of the event; and whatever additional information is available concerning the event and its impact on 14 the City and its Customers. The Contractor shall provide prompt written notice of the cessation of the 15 Force Majeure. Whenever such event shall occur, the Contractor, as promptly and as reasonably 16 possible, shall use its best efforts to eliminate the cause, reduce the cost, and resume performance 17 under the Contract. In addition, if as a result of a Force Majeure event, Contractor is unable wholly or 18 partially to meet its obligations under this Contract, the Contractor shall notify all Customers regarding 19 the disruption in collection service in a manner similar to the notification required in the case of 20 inclement weather under Section 4.1.7. 21 22 8.16 Severability 23 24 If any provision of this Contract shall be declared illegal, void, or unenforceable, the other provisions of 25 the Contract shall remain in full force and effect. 26 27 8.17 Waiver 28 29 No waiver of any right or obligation of either party hereto shall be effective unless in writing, specifying 30 such waiver, and executed by the party against whom such waiver is sought to be enforced. A waiver by 31 either party of any of its rights under this Contract on any occasion shall not be a bar to the exercise of 32 the same right on any subsequent occasion or of any other right at any time. 33 34 8.18 Incorporation of Contractor’s Proposal in Response to City’s RFP 35 36 The Contractor’s Proposal, dated ________________, submitted in response to the City’s Request for 37 Proposals, is fully incorporated by this reference, including but not limited to collection vehicle types, 38 customer service staffing and approach, processing abilities and other commitments made in the 39 Contractor’s proposal and all associated clarifications and supplemental proposal materials or 40 attachments. In the case of conflict between the Contractor’s proposal and this Contract, the provisions 41 of this Contract shall prevail. 42 43 8.19 Dispute Resolution 44 45 The Parties shall attempt to resolve any and all disputes to the mutual satisfaction of both Parties by 46 good faith discussions. Throughout the duration of a dispute, the Contractor shall continue providing all 47


Services included in this Contract. Disputes not resolved in accordance with other provisions of this 1 Contract or through good faith discussions shall be submitted to non-binding mediation before a 2 mediator acceptable to both the City and the Contractor. All costs of mediation, including the City’s 3 attorneys’ fees and expert witness fees, shall be paid for by the Contractor. Neither party may initiate or 4 commence legal proceedings prior to completion of the non-binding mediation. 5 6 8.20 Entirety 7 8 This Contract and the exhibits affixed hereto and herein incorporated by reference represent the entire 9 agreement between the City and the Contractor with respect to the services to be provided under this 10 Contract. No prior written or oral statement or proposal shall alter any term or provision of this 11 Contract. 12 13 WITNESS THE EXECUTION HEREOF on the day and year first herein above written. 14 15 CITY OF MERCER ISLAND 16 17 By _________________________ By ______________________________ 18 (Print) ______________________ City Manager 19 20 Approved as to Form: 21 22 By ______________________________ 23

City Attorney 24

City of Mercer Island 1 June, 2018 Exhibits

EXHIBITS 1 2 EXHIBIT A: Service Area 3 EXHIBIT B: Contractor Rates 4 EXHIBIT C: Recyclables List 5 EXHIBIT D: Rate Modification Example 6

7

City of Mercer Island 1 JuneJuly, 2018 City Service Area

EXHIBIT A: 1 Service Area 2

3 4

City of Mercer Island 2 JuneJuly, 2018 City Service Area

EXHIBIT B 1 Contractor Rates 2

3 [to be completed based on Contractor’s RFP Form 2] 4

5 6 7 8 9 10 11 12 13 14

15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33

City of Mercer Island 1 Julyne, 2018 List of Recyclables

Exhibit C: Recyclables List Recyclable Item Curb Call-in Handling Instructions Limitations

1 2 3 (to be determined – the list will include the currently collected Mercer Island recyclable, at a minimum.)4

City of Mercer Island 1 Julyne, 2018 Fee Modification Examples

OTFNTFODCA ×=

EXHIBIT D 1 Fee Modification Examples 2

NOTE TO READERS: ALL AMOUNTS ARE PLACEHOLDERS AND WILL BE REVISED WITH THE 3 CONTRACTOR’S FINAL RATES. Commodity Value examples will be included in the final. 4

5 The collection and disposal components of the Customer charges listed in Exhibit B will be adjusted 6 separately, as appropriate. The collection component of Customer charges will be adjusted annually, 7 pursuant to this Section and as described below. The disposal component of the Customer charges 8 listed in Exhibit B will be adjusted only if the City receives notification from the County of a pending 9 disposal fee adjustment, and will not become effective until the new disposal charges become effective 10 and are actually charged to the Contractor. Formulas for both collection and disposal rate adjustments 11 are provided as follows: 12

Collection Component Adjustment 13

The sum of the collection and Administrative Fee components listed in Exhibit B will be 14 increased or decreased by the amount of the CPI change: 15

NCC = PCC x [1 + nCPI – oCPI ] 16 oCPI 17

18

Where NCC = The new collection and Administrative Fee components, 19 adjusted for excise tax on the Administrative Fee, of the 20 customer rate for a particular service level; and 21

PCC = The previous collection and Administrative Fee components, 22 adjusted for excise tax on the Administrative Fee, of the 23 Customer rate for a particular service level; and 24

nCPI = The most recent June CPI value; and 25

oCPI = The CPI value used for the previous rate adjustment or, in the 26 case of the first contract adjustment, the CPI value reported 27 at the end of June 20202019. 28

Disposal Component Adjustment 29

In the case of a disposal fee modification at County disposal facilities, the disposal component of 30 each service level will be adjusted as follows: 31 32

Step 1: 33 34 35

36 Step 2: 37

38 39 ])[( CETRODCAANDC ×−+=


1 Where NDC = The new disposal charge component of the customer rate for 2

a particular service level; and 3

NTF = The new disposal fee, dollars per ton; and 4

ODC = The old disposal charge component of the customer rate for a 5 particular service level; 6

OTF = The old disposal fee, dollars per ton; and 7

A = Pre-excise tax adjusted disposal component; and 8

CETR = Current excise tax rate (the current State excise tax rate; 9 0.015 used for this example). 10

For example, using an initial one 32-gallon cart rate of $31.35 per month: if the 11 previous CPI is 143.2, the new CPI is 144.3 and the disposal fee will increase from $130 12 to $140 per ton starting on January 1, 2021, the old disposal component is $4.94, and 13 the State Excise Tax rate is 0.015, the January 2021 Customer charge for one 32-gallon 14 cart per week Residential Curbside service would be: 15 16

(144.3-143.2) 17 New Collection Component = $26.41 x [1+ ----------------] = $26.61 18 (143.2) 19 20 New Disposal Component Step A calculation (as on previous page): 21

[$4.94 x (140/130)] = $5.32 22

Step B calculation (as on previous page): 23

$5.32 + [(5.32-4.94) x 0.015] = $5.33 24

25 Thus, the new Customer charge for one 32-gallon cart per week Residential Curbside service will be the 26 $26.61 collection component plus the $5.33 disposal component, equaling $31.94. 27 28 Administrative Fee Adjustment 29

The Contractor’s Commercial and Multifamily rates shown in Exhibit B include an embedded 30 Administrative Fee, which may be adjusted from time to time, pursuant to Section 5.2. The initial 31 contract rates have incorporated an Administrative Fee corresponding to a x.x% fee on gross receipts 32 from those Customers, as follows (1 yard, 1 pickup per week as example): 33

Collection Fee ($48.26) + Disposal Fee ($29.35) + Administrative Fee ($10.87) + Excise Tax at 34 1.5% on Administrative Fee ($0.16) = Customer rate of $88.64. 35


In the event the City Administrative Fee is adjusted, the Administrative Fee portion of the Contractor’s 1 Customer rates shall be adjusted in a manner that retains the Contractor’s underlying compensation to 2 ensure that the Contractor remains whole. 3 4

Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 TotalResidential Tonnage

MSW Tonnage 324.90 274.87 323.03 277.37 347.30 345.59 324.70 359.65 329.29 322.42 343.78 314.70 3,887.60 Recycle Tonnage 282.56 218.60 248.09 204.99 245.31 239.32 231.89 252.47 234.14 246.80 270.65 270.51 2,945.33 Yardwaste Tonnage 237.35 309.77 395.70 452.70 620.30 563.37 397.74 330.77 314.78 408.59 758.71 526.79 5,316.57

Total Residential Tonnage 844.81 803.24 966.82 935.06 1,212.91 1,148.28 954.33 942.89 878.21 977.81 1,373.14 1,112.00 12,149.50

Commercial TonnageMSW Tonnage 108.12 102.65 121.55 110.29 135.49 126.65 119.55 119.73 114.42 114.96 114.26 106.10 1,393.77 Recycle Tonnage 52.28 50.95 51.68 44.55 52.74 50.07 42.25 56.44 49.19 55.08 60.82 52.42 618.47 Yardwaste Tonnage 0.41 0.44 0.60 0.58 0.88 1.40 1.10 0.81 0.78 1.21 1.86 1.42 11.49

Total Commercial Tonnage 160.81 154.04 173.83 155.42 189.11 178.12 162.90 176.98 164.39 171.25 176.94 159.94 2,023.73

Multi Family TonnageMSW Tonnage 36.13 30.34 35.24 32.98 40.98 39.25 39.55 37.91 35.23 39.01 39.00 36.71 442.33 Recycle Tonnage 22.86 20.21 20.57 17.89 21.34 20.72 18.75 21.34 20.47 22.40 21.40 24.36 252.31 Yardwaste Tonnage 0.49 0.37 0.39 0.46 0.81 1.21 1.10 0.75 0.70 0.89 1.26 1.39 9.82

Total Multi Family 59.48 50.92 56.20 51.33 63.13 61.18 59.40 60.00 56.40 62.30 61.66 62.46 704.46

Total Resi/Comm/MF Tonnage 1,065.10 1,008.20 1,196.85 1,141.81 1,465.15 1,387.58 1,176.63 1,179.87 1,099.00 1,211.36 1,611.74 1,334.40 14,877.69

Rolloff Commercial TonnageMSW Tonnage 86.06 75.36 92.86 76.81 91.08 99.90 85.14 78.68 87.46 80.38 76.70 70.36 1,000.79 Recycle Tonnage 65.07 39.16 57.80 26.23 118.50 139.47 260.16 262.11 77.93 62.03 40.84 50.43 1,199.73 Yardwaste Tonnage 7.34 56.88 103.17 25.06 55.76 38.08 37.26 28.32 18.13 60.88 61.22 90.92 583.02

Rolloff Multi Family TonnageMSW Tonnage 44.04 37.67 39.69 38.15 41.23 43.70 38.37 46.44 38.66 39.46 40.14 43.54 491.09 Recycle Tonnage 4.03 3.61 3.45 3.38 4.11 3.09 2.93 4.72 3.16 1.18 3.30 3.56 40.52 Yardwaste Tonnage - - - - - - - - - 2.77 - - 2.77

Total Rolloff Tonnage 206.54 212.68 296.97 169.63 310.68 324.24 423.86 420.27 225.34 246.70 222.20 258.81 3,317.92

Grand Total Tonnage 1,271.64 1,220.88 1,493.82 1,311.44 1,775.83 1,711.82 1,600.49 1,600.14 1,324.34 1,458.06 1,833.94 1,593.21 18,195.61

Diversion RatesResidential Recycle/Yardwaste

Garbage 38.46% 34.22% 33.41% 29.66% 28.63% 30.10% 34.02% 38.14% 37.50% 32.97% 25.04% 28.30% 32.00%Recycle/Yardwaste 61.54% 65.78% 66.59% 70.34% 71.37% 69.90% 65.98% 61.86% 62.50% 67.03% 74.96% 71.70% 68.00%

Commercial Diversion RateGarbage 67.23% 66.64% 69.92% 70.96% 71.65% 71.10% 73.39% 67.65% 69.60% 67.13% 64.58% 66.34% 68.87%Recycle/Yardwaste 32.77% 33.36% 30.08% 29.04% 28.35% 28.90% 26.61% 32.35% 30.40% 32.87% 35.42% 33.66% 31.13%

Multi Family Diversion RateGarbage 60.74% 59.58% 62.70% 64.25% 64.91% 64.15% 66.58% 63.18% 62.46% 62.62% 63.25% 58.77% 62.79%Recycle/Yardwaste 39.26% 40.42% 37.30% 35.75% 35.09% 35.85% 33.42% 36.82% 37.54% 37.38% 36.75% 41.23% 37.21%

City of Mercer IslandTonnage Information

#REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! TotalResidential Tonnage

MSW Tonnage 362.68 268.13 322.93 291.79 344.54 1,590.07 Recycle Tonnage 286.69 209.07 233.20 206.90 232.00 1,167.86 Yardwaste Tonnage 368.14 306.31 437.47 375.04 567.72 2,054.68

Total Residential Tonnage 1,017.51 783.51 993.60 873.73 1,144.26 - - - - - - - 4,812.61

Commercial TonnageMSW Tonnage 117.79 100.76 115.43 118.52 124.17 576.67 Recycle Tonnage 49.42 40.38 51.31 58.67 65.20 264.98 Yardwaste Tonnage 1.02 0.81 1.30 1.50 2.37 7.00

Total Commercial Tonnage 168.23 141.95 168.04 178.69 191.74 - - - - - - - 848.65

Multi Family TonnageMSW Tonnage 41.46 34.66 41.41 44.15 44.38 206.06 Recycle Tonnage 23.37 19.28 25.43 29.68 36.55 134.31 Yardwaste Tonnage 0.97 0.66 0.70 1.14 1.67 5.14

Total Multi Family 65.80 54.60 67.54 74.97 82.60 - - - - - - - 345.51

Total Resi/Comm/MF Tonnage 1,251.54 980.06 1,229.18 1,127.39 1,418.60 - - - - - - - 6,006.77

Rolloff Commercial TonnageMSW Tonnage 78.84 64.10 76.03 68.35 90.16 377.48 Recycle Tonnage 171.96 79.28 143.44 37.20 154.48 586.36 Yardwaste Tonnage 62.14 31.66 23.60 177.94 47.41 342.75

Rolloff Multi Family TonnageMSW Tonnage 38.27 34.19 41.61 24.73 38.14 176.94 Recycle Tonnage 3.65 2.96 3.11 - - 9.72 Yardwaste Tonnage - - - - - -

Total Rolloff Tonnage 354.86 212.19 287.79 308.22 330.19 - - - - - - - 1,493.25

Grand Total Tonnage 1,606.40 1,192.25 1,516.97 1,435.61 1,748.79 - - - - - - - 7,500.02

Diversion RatesResidential Recycle/Yardwaste

Garbage 35.64% 34.22% 32.50% 33.40% 30.11% 33.04%Recycle/Yardwaste 64.36% 65.78% 67.50% 66.60% 69.89% 66.96%

Commercial Diversion RateGarbage 70.02% 70.98% 68.69% 66.33% 64.76% 67.95%Recycle/Yardwaste 29.98% 29.02% 31.31% 33.67% 35.24% 32.05%

Multi Family Diversion RateGarbage 63.01% 63.48% 61.31% 58.89% 53.73% 59.64%Recycle/Yardwaste 36.99% 36.52% 38.69% 41.11% 46.27% 40.36%

Tonnage InformationCity of Mercer Island

Mercer Island RFP 2018 Form 2 Rate ProposalMonthly Rates Unless Otherwise Specified

Proponent: ______________

Service Pounds TotalLevel Per Disposal Collection Service

Service Level Count Unit Fee Fee FeeMonthly One 32 gallon Garbage Cart -$ Weekly One 19/20-gallon Garbage Cart 1279 -$

Residential 1 32/35-gallon Garbage Cart 2826 -$ Curbside 1 60/64-gallon Garbage Cart 1725 -$ Service 1 90/96-gallon Garbage Cart 856 -$

Additional 32 Gallon Cans (weekly svc) -$ Total GarbageExtras (32 gallon equivalent) 76 4.00$

Customers: Miscellaneous Fees:6686 Recycling Only (no garbage service)

Compostables Only (no garbage service)Extra Compostables (32 gallon bag/bundle/can) 5 3.00$ Second 96-Gallon Compostables Cart (rental only) 9 1.50$ Additional 96-Gallon Compostables Cart (for excess above limit) 6.00$ Sunken Can Surcharge 7Return Trip 19 6.00$ Roll-out Charge, per 25 ft, per cart, per time 19 3.00$ Drive-in Charge, per month 215 6.00$ Overweight/Oversize container (per p/u) 3.00$ Redelivery of one or more containers 10.00$ Cart Cleaning (per cart per cleaning) 10.00$

On-Call Non-CFC Containing Large Appliances ("white goods"), per item 20.00$ Bulky Refrigerators/Freezers/Air Conditioners per item 30.00$ Waste Sofas, Chairs, per item 1 20.00$

Collection Mattresses, Boxsprings, per item 1 20.00$ Weekly One 20-gallon Garbage Cart -$

Commercial 1 32/35-gallon Garbage Cart -$ /MF Can and 1 45-gallon Garbage Cart -$

Cart 1 60/64-gallon Garbage Cart 1 -$ 1 90/96-gallon Garbage Cart (23) 93 -$

NOTE: Extras (32-gallon equivalent) 21 4.00$ Column C is Extras (64-gallon equivalent) -$

total MF Extras (96-gallon equivalent) -$ and comm Ancillary Fees:containers. Weekly 35-gal Cart Yard Debris/Foodwaste serviceNumber in Weekly 64-gal Cart Yard Debris/Foodwaste service

column B in Weekly 96-gal Cart Yard Debris/Foodwaste service 57(red) is the Return Trip 1 6.00$ portion that Roll-out Charge, per addtn'l 25 ft, per cart, per p/u 1.50$

are MF Redelivery of containers 10.00$ Cart Cleaning (per cart per cleaning) 10.00$

Weekly 1 Cubic Yard Container -$ Commercial/ 1.5 Cubic Yard Container -$

MF Detachable2 Cubic Yard Container (1) 6 -$ Container 3 Cubic Yard Container -$

(compacted) 4 Cubic Yard Container -$ 6 Cubic Yard Container -$

Commercial 1 Cubic Yard, 1 pickup/week (1) 2 -$ Detachable 1 Cubic Yard, 2 pickups/week (6) 8 -$ Container 1 Cubic Yard, 3 pickups/week -$

(loose) 1 Cubic Yard, 4 pickups/week -$ 1 Cubic Yard, 5 pickups/week -$ 1.25 Cubic Yard, 1 pickup/week (4) 10 -$ 1.25 Cubic Yard, 2 pickups/week (1) 1 -$ 1.25 Cubic Yard, 3 pickups/week -$ 1.25 Cubic Yard, 4 pickups/week -$ 1.25 Cubic Yard, 5 pickups/week -$

Page 1 of 3


Proponent: ______________

2 Cubic Yard, 1 pickups/week (9) 28 -$ 2 Cubic Yard, 2 pickups/week (3) 6 -$ 2 Cubic Yard, 3 pickups/week -$ 2 Cubic Yard, 4 pickups/week -$ 2 Cubic Yard, 5 pickups/week -$ 3 Cubic Yard, 1 pickup/week (3) 12 -$ 3 Cubic Yard, 2 pickups/week (6) 7 -$ 3 Cubic Yard, 3 pickups/week (2) 3 -$ 3 Cubic Yard, 4 pickups/week -$ 3 Cubic Yard, 6 pickups/week 1 -$ 4 Cubic Yard, 1 pickup/week (5) 16 -$ 4 Cubic Yard, 2 pickups/week (6) 8 -$ 4 Cubic Yard, 3 pickups/week 2 -$ 4 Cubic Yard, 4 pickups/week 1 -$ 4 Cubic Yard, 6 pickups/week 1 -$ 6 Cubic Yard, 1 pickup/week 8 -$ 6 Cubic Yard, 2 pickups/week 4 -$ 6 Cubic Yard, 3 pickups/week 2 -$ 6 Cubic Yard, 4 pickups/week -$ 6 Cubic Yard, 5 pickups/week -$ 8 Cubic Yard, 1 pickup/week 4 -$ 8 Cubic Yard, 2 pickups/week (1) 2 -$ 8 Cubic Yard, 3 pickups/week 1 -$ 8 Cubic Yard, 4 pickups/week -$ 8 Cubic Yard, 5 pickups/week -$ Extra loose cubic yard in container, per pickup (17) 27 10.00$ Extra loose cubic yard on ground, per pickup 20.00$ Detachable Container Ancillary Fees (per occurance):Stand-by Time (per minute) 1.60$ Container Cleaning (per yard of container size) 10.00$ Redelivery of Containers 20.00$ Return Trip 10.00$

Daily Monthly Delivery HaulService Level (based on pick ups) Rent Rent Charge Charge

Commercial Non-compacted 12 cubic yard Drop-box (1 boxes) 3Drop-box Non-compacted 15 cubic yard Drop-box (0 boxes)Collection Non-compacted 20 cubic yard Drop-box (2 boxes) 4

Non-compacted 25 cubic yard Drop-box (2 boxes) 16Non-compacted 30 cubic yard Drop-box (0 boxes)Non-compacted 40 cubic yard Drop-box (6 boxes)Compacted 10 cubic yard Drop-box (1 boxes) 2Compacted 15 cubic yard Drop-box (1 boxes) 11Compacted 20 cubic yard Drop-box (1 boxes) 2Compacted 25 cubic yard Drop-box (2 boxes) (1) 8Compacted 30 cubic yard Drop-box (3 boxes) (1) 10Drop-box Ancillary Fees Per Event Return Trip 25.00$ Stand-by Time (per minute) 1.60$ Container cleaning (per yard of container size) 10.00$ Drop-box directed to other facility (per one-way mile) 3.75$

MultifamilyRecycling Surcharge per cubic yard of MF garbage collected 1372 -$

PoundsPer Disposal Collection Haul

Service Level Unit Fee Fee Charge2 Yard detachable Container

Temporary 4 Yard detachable containerCollection 6 Yard detachable container 1Hauling 8 Yard detachable container

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Proponent: ______________

Non-compacted 10 cubic yard Drop-boxNon-compacted 20 cubic yard Drop-box 1Non-compacted 25 cubic yard Drop-boxNon-compacted 30 cubic yard Drop-box 1

Delivery Daily MonthlyService Level Fee Rental Rental

2 Yard detachable containerTemporary 4 Yard detachable containerCollection 6 Yard detachable container 1Container 8 Yard detachable container

Rental Non-compacted 10 cubic yard Drop-boxand Delivery Non-compacted 20 cubic yard Drop-box 1

Non-compacted 30 cubic yard Drop-boxNon-compacted 40 cubic yard Drop-box 1

Event Per DayServices Delivery, provision, collection of a set of 3 carts (G, R &C) -$

Service Per HourHourly Rear/Side-load packer + driverRates Front-load packer + driver

Drop-box Truck + driverAdditional Labor (per person)

Proposal Alternatives(1) Weekly Single-Family Recyclables Collection Per month increase in garbage rate per SF customer(2) Mandatory Collection Per mo increase or decrease in garbage rate per Custome(3) Spring Clean-up Scenario A on-call Per month increase in garbage rate per SF customer(4) Spring Clean-up Scenario B event Per month increase in garbage rate per SF customer(5) Spring Clean-up Scenario C drop-off Per month increase in garbage rate per SF customer(6) Relaxed Collection Vehicle Standard Annual increase or decrease to revenue requirement(7) Relaxed Cart Standard Annual increase or decrease to revenue requirement(8) Embedded Commercial Recycling Per month increase per cubic yard of garbage collected(9) Alternative Service Fee Escalation Component - WST Annual increase or decrease to revenue requirement(10) Alternative Service Fee Escalation Component - 3.5% Annual increase or decrease to revenue requirement

Page 3 of 3

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APPENDIX D - CITY OF MERCER ISLAND SOLID WASTE COLLECTION RFP

RESPONSE TO INDUSTRY REVIEW COMMENTS

JULY 19, 2018

Section Hauler Question/Comment Response Action

1.

RFP Various Recology Several areas of the RFP reference a “best and final” round (including §1.1, §2.4, and §2.11(3). However, it was not included in the Process Schedule in §2.4. Is it the City’s intent to have a best and final round? If so, we would not be able to respond to the RFP. Given the history of bidders using the Public Records Act to obtain the confidential information of other bidders, which impacts the fairness and integrity of the process, it is difficult to reconcile the City’s stated desire for confidentiality while maintaining a “best and final” round. Our company will not be able to respond to the RFP if such a risk remains.

References to a “best and final” round will be deleted in the final RFP.

The RFP has been revised.

2. RFP Section 1.1

Recology Please revise this section so that any extension is by mutual agreement between the City and contractor. This provides an opportunity for both parties to revisit the needs of the agreement, allowing for the inclusion of new programs, development of new pilot programs, and other programmatic or contractual changes that may be beneficial after a ten-year contract.

The City and contractor may renegotiate terms of the contract at any time, upon mutual agreement. The extension is intended as written: a clear option to extend by the City without restriction or requirements to renegotiate the contract.

No change.

3. RFP Section 1.2

Recology We encourage the City to adopt mandatory collection service. Mandatory service helps increase diversion rates, lowers contamination levels, and stabilizes rates across a consistent customer base. Recently, cities such as Shoreline and Kirkland have had success after converting to mandatory service.

The City Council may consider mandatory collection if the costs and other factors make it attractive. Note that Alternative #2 in the RFP is mandatory collection, which will give the City Council hard figures on the attractiveness of implementing mandatory collection.

No change.

4. RFP Section 1.2

WM Please provide the number of days per week Republic currently services residential customers as well as a map of updated service day boundaries. A map with color-coded service areas and days of the week has

been provided with the RFP.

Service map provided.

5. RFP Section 1.2

WM Please provide the total number, by line of business, of limited access trucks that Republic utilizes to service residential customers.

One LAV for weekly garbage, one LAV truck EoW for compostables/recyclables.

No change.

6. RFP Section 1.2

WM Will the City please confirm the requirement for customers to utilize Contractor provided containers as their primary container, utilizing customer-owned cans for only extras?

Confirmed. Please refer to the second paragraph of draft contract Section 4.1.14

No change.

7. RFP Section 1.2

WM With the existing Contractor not needing to factor cart purchase into their proposal, will the City please describe the process for evaluating and level-setting other Proponents who will be required to procure new carts?

The base contract has been revised to require new carts. The RFP alternatives have been revised to include an alternative for used carts.

Contract and RFP changed.

8. RFP Section 1.2

WM Please list any anticipated annexations within the next 12 years. There are none. No change.

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9. RFP Section 1.2

WM The existing system states an allowance of 320 gallons of residential compost per customer. According to the draft contract, all extras beyond initial cart will be charged at extra collection rate. Would the City please confirm this change?

That is not strictly correct. The existing limit is 320 gallons per EoW cycle. Under the draft contract, collection will be weekly, with one 96 gallon cart provided as part of the basic service. However, additional carts may be obtained by the customer at a significant discount over the regular extra rate. The “extra” rate is intended to apply to the occasional use of paper bags, bundles, or converted garbage cans that must be manually loaded.

No change.

10. RFP Section 1.2

Recology 320 gallons for yard waste is excessive prior to extra charges. This will lead to an increase in overall costs. Please reduce the limit to 96 gallons.

See answer to #9. The current level of service is 320 gallon every other week. The new contract will reduce the initial amount of embedded service to a 96-gallon cart weekly, but with additional carts available at a discount to the normal “extra” charge.

No change.

11. RFP Section 1.2

Recology Free commercial recycling has been shown to increase contamination rates; by including recycling as a separate line item on the invoice, customers are encouraged to take responsibility for proper sorting. We strongly recommend the City itemize the cost of commercial recycling.

The City will support removal of service or additional charges for customers that mis-prepare or chronically contaminate recyclables. The City expects that all customers will be charged bundled rates.

No change.

12. RFP Section 1.2

Recology Please require all proposers to use new carts for the contract. Allowing the current contractor to keep the existing inventory allows them a significant cost advantage to the point where it will not make sense for us to submit a proposal.

The contract has been revised to require new carts, with used carts as a RFP alternative.

The RFP and draft contract have been revised.

13.

RFP Section 1.3.2

Republic Alternative #3, as written, is unlimited. We recommend adding “one time per year,” after “one cubic yard.”

Alternative #7 and #8: Please use CPI for one of the alternatives and Water, Sewer, Trash or the flat 3.5% annual increase in the base contract (also Contract Section 5.3.1).

Agreed.

The City will retain CPI escalation as the base scenario.


No RFP modification for escalators.

14. RFP Section 1.3.2

WM Item 2: Please provide the total number of City residential utility customers to aid our calculations around mandatory collection.

This information has been requested and will be released via addendum..

Pending


WM Item 2: Under a mandatory collection service model, would the City allow the Contractor to cut off service for bad pay?

Not necessarily, however specific enforcement provisions may be discussed at the time the contract is finalized.

No change.


Emerald There are key determining factors to this bid that give competitive advantages to other bidders, mainly the incumbent and / or a national hauler. The areas we have identified make it more challenging for a local business such as ours to potentially submit a bid. One example is the lack of a mandate to buy new trucks, while also mandating the use of natural gas where others already have the trucks and infrastructure in place. There have been a lot of advancements in technology, whether being CNG, electrification, or other forms of diesel that may be advantageous to Mercer Island. The variability of the National Sword causes each bidder to creatively address the collection and processing of recyclables. While a price might look to be higher for comparable purposes in year one, it may truly be to the advantage of

The RFP and draft contract have been revised to require new trucks and carts, and the fuel requirement has been removed. The qualitative scoring component has been revised to 60/40.

RFP and contract changed.

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the rate payer long term but would harm the creative bidder due to price being weighted so highly in the scoring model. This weighted scoring will limit creativity while making it difficult to compare apples to apples between bids. We heavily advise the City to change the scoring parameters to 50 points quantitative / 50 points qualitative. This is also consistent with the City of Seattle’s recent solid waste RFP.


Recology Please revise the evaluation scoring to place a greater emphasis on quality of services, such as 50 points for rate evaluation and 50 points for qualitative aspects. This provides the City a greater opportunity to ensure a higher quality of service, more reflective of the City’s values while maintaining competitive rates.

The City of Seattle’s recent RFP for Solid Waste Collection Services has similarly weighted evaluation criteria. 50% of possible points were assigned to qualitative aspects of proposals (such as operations, customer service, community response, and background/past performance). The other 50% was weighted to total system price.

This enabled the City of Seattle to ensure they were receiving proposals with innovative, high-quality programs, while still focusing on a fair cost for services.

The RFP scoring has been revised to 60% rate and 40% qualitative. This is a balance between expected rate impacts to customers and valuing high levels of service.


18. RFP Section 2.11.1 (3)

WM This section mentions that rate evaluation will be conducted on either the first round or best and final round at City’s option. Section 2.11.2 does not mention a best and final round under its process. Will the City please clarify its intent of a best and final round?

See answer to #1 The RFP has been revised.

19. RFP Section 2.11.1 (4)

WM Will the City please provide the weighted values of references, interviews and site visits, regarding the overall 30-point allowance in this Section?

No, the City evaluation team will determine the relative weighting at the time proposals are reviewed. References, interviews and site visits will not necessarily be scored as separate elements and may be used primarily to inform the scoring of other proposal elements.

No change.


WM Will the City conduct interviews and site visits for each bidder? Interviews are likely, whether site visits will be conducted is unknown at this point.

No change.


WM Please provide the names of individuals who will be part of the evaluation team along with their respective titles and organizations.

The City Manager will appoint the evaluation committee. No final decisions have been made regarding the composition of the evaluation committee.

No change.


WM Please clarify Council’s role in the decision-making process. Will Council be provided the opportunity to review and decide on all base proposals before being presented with alternatives?

No. Reviewing and scoring proposals is a staff function. Council members may review proposals if they wish. Council will make the final decision when the contract is awarded.

No change.


WM Please clarify how many originals versus copies of the Proposal Documents the City desires. For example, 5 originals or 1 original and 4 copies?

1 original and 4 copies. The RFP has been clarified.

4

24. RFP Section 2.16

Recology Will proponents be disqualified for violating the process integrity requirements, including requesting other proponents proposals in advance of a decision by the City?

As stated in RFP Section 2.16, “A Proposer shall be disqualified and shall forfeit its PSB if the City determines the Proposer has failed to comply with the specific Process Integrity Requirements, has undermined the City’s intention of conducting a fair and transparent competitive process based on the specified evaluation criteria, or has otherwise substantially diminished the City’s ability to award a Contract in a timely manner and free of contention. The City reserves the sole right to disqualify any Proposer at any point in the process prior to Contract award for failure to comply with the Process Integrity Requirements.” If any Proposer files public records requests to obtain competing proposals during the evaluation phase, the request will be processed consistent with the Public Records Act (chapter 42.56 RCW), and third party notice requirements pursuant to RCW 42.56.540 may delay disclosure of public records until after the City makes its award decision.

As stated in RFP Section 2.13, “If the City receives a request for inspection or copying of such documents and other records, it will make an effort to promptly notify the Proposer of such request so that the Proposer may choose to pursue a court order prohibiting or conditioning the release of such documents. The City assumes no contractual obligation to enforce any exemption. Proposers are cautioned to not include any confidential or proprietary information with their Proposals which they do not want disclosed. The City shall not be liable for or responsible for the disclosure of such information.”

No change.

25. Contract – Definitions

WM Food mini-can: Please consider container sizes that are compatible with automated collection. The 12/13-gallon mini-can does not work with an automated truck, and manual collection increases service costs and presents safety issues for our drivers. WM recommends a 20-gallon container size.

The food mini-can has been removed in favor a 20-gallon carts. The contract has been revised.

26. Contract – Definitions

WM Multifamily Complex: Please explain the City’s reasoning for changing standard MF complex definition from 5 to “multiple.” An agreed upon unit number provides clarity as to what qualifies as a MF complex.

The current contract does not specifically define “multifamily”. The draft contract includes a definition that specified collective billing as the defining threshold for multifamily service. Thus, a four-plex could be either single-family or multifamily depending on whether there is a common billing. The City is open to discussing refinements to this definition as part of contract finalization.

No change at this time.

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27. Contract – Definitions and Section 4.2

WM Please consider adding a definition and protocol for contamination specific to Recycling and Compostables collection. We suggest Contractor provide notification and leave contents. If customer removes the contamination, Contractor shall make collection on the next regularly scheduled collection day. Alternatively, the customer may request a return trip (with an added fee) prior to next collection cycle for collection as garbage. If the customer chooses neither option, the Contractor would collect as garbage on the next regular collection cycle; that collection would not be subject to the requirement to recycle.

A protocol for contamination will be developed by the City and contractor as a separate document and will be subject to revision over the course of the contract as needs and emphasis change over time. This is a more appropriate method to address contamination issues, as such a document can be changed administratively, as appropriate, without requiring a amendment to the contract.

No change.

28. Contract - Various

Republic Throughout the agreement, there are references to required response times of 24 hours. Could this be changed to one business day?

Similarly, could references to “immediately” be changed to use a certain time frame? We recommend four hours.

Yes, the contract has been revised to the “business day” language and immediately has been better defined.

The contract has been revised.

29. Section 1 Recology Please add definitions for the following terms that are commonly used throughout the contract:

· Contamination · Embedded service · Comingle

Recycled Commodity (we recommend the definition used by the state of Oregon, ORS 459.005, which defines recycled material as “any material or group of materials that can be collected and sold for recycling at a net cost equal to or less than the cost of collection and disposal of the same material.”)

It is unclear how these definitions would enhance the contract at this time. The City and the selected proponent can discuss adding definitions during contract finalization if there is a specific reason to incorporate a definition.

The King County CSWMP does not reference the Oregon definition for determining what is recyclable. Further, valuing recycling in terms of simple avoided disposal cost overlooks any additional value recycling has for toxics reduction, sustainability or other factors. There may be circumstances where recycling is preferred, even though it costs more than disposal.


30. Section 2 WM Please consider allowing mutual extensions, instead of City-sole, which more accurately reflects a partnership agreement.

See answer to #2 No change.

31. Section 2 WM Please consider allowing each extension run two (2) years in duration. The Contract will be revised to reflect two 2-year extensions. The contract has been revised.

32. Section 2 Recology We recommend that the notice of extension be for 1 year. Less than 1 year is unreasonable at the end of a 10 year contract, when assets may be beyond their useful lives. Furthermore, as noted in Comment 2 above, we request that any agreement extension be mutually agreed upon between the City and the Contractor.

Variable extensions are useful in the event that the City and Contractor wish to negotiate a new contract and need additional time to complete negotiations without limiting the City’s option to do an RFP in the event that negotiations are not successful.

See response to #2.

No change.

33. Section 4.1.2 Recology · Please consider a change in the pricing structure where homes with limited access vehicles incur a charge similar to, but not as high as drive-in services. This will allow traditional curbside service to be offered at a cheaper rate.

· Please provide a comprehensive list of current addresses that are utilizing drive in service.

· Please provide a list of current addresses services by Limited Access Vehicle (LAV) vehicles?

Homeowners that require service on private driveways or private roads will need to sign a hold harmless agreement, stating that the contractor is not

The City would prefer to have consistent rates across a customer sector.

Drive in customer and LAV route lists are available from the City.

No change.

6

responsible for damage to the roadways caused by the weight of the vehicles.

34. Section 4.1.3 WM Please consider extending collection hours for both Single Family and Commercial customers to 6:00 pm.

Mercer Island’s current service is limited to 4:00 PM due to specific customer concerns about later service. The City will continue to specify the current time restrictions.

No change.

35. Section 4.1.3 WM Please considering adding language, “Provided Contractor is notified in advance of any changes and can reasonably abide by the changes. In event Contractor’s operations are materially affected by any Mercer Island Code provisions in execution of services under this Contract, the Parties will meet and confer as to a mutually agreeable resolution.”

This will be considered by the City attorney and an answer will be issued via RFP addendum. Pending.

36. Section 4.1.3 Recology · Please extend the hours of collection to 5 pm. The current cutoff time of 4 pm would have a significant and negative impact on operational efficiencies.

· Will the city change commercial collection hours for areas adjacent to residential areas if the customer is utilizing plastic front load containers, which produce less noise?

· What is considered “audible distance” from a residence when collecting commercial customers? This distance will not necessarily be the same depending on changing weather conditions, type of container, type of commodity collected, insulation on older homes, homes with single pane windows, etc.

If the City’s municipal code may further restrict these requirements, please insert the relevant sections of the municipal code into the RFP.

The current cutoff time is specific to the traffic circumstances in the commercial district of Mercer Island and will be retained.

Hours of collection are set forth in the Mercer Island City Code (“MICC”) at Section 8.04.070(A) through (F), and other solid waste-related regulations are generally set forth in Chapter 8.04 MICC.

Proponents are encouraged to review those sections of MICC. The MICC is available on-line at: http://www.codepublishing.com/WA/MercerIsland/

No change.

37. Section 4.1.3 Republic Line 8, commercial collection: Would the City consider adding a need for earlier collection where a high-risk of a safety hazard is shown, and that a variance shall not be unreasonably withheld?

Yes. No change at this time.

38. Section 4.1.4 Recology Does the employee need to wear photo identification on his or her person, visible at all times, or is the driver required to simply have photo identification available upon request? Will the City consider changing its policy of “reserving the right to request at any time” that an employee be removed from performance of additional work under this contract? These employees are covered by a Collective Bargaining Agreement (CBA). We believe that an employee should only be removed for actions deemed unsatisfactory or subject to discipline per the CBA.

Available upon request is acceptable.

No. The contractor is responsible for determining how to manage their employees, including additional training, reassignment, discipline and/or other actions in the event that contractor employee performance is unsatisfactory to the City.

Photo requirements in the contract have been revised.

No change.

39. Section 4.1.5 WM Please provide the number of disabled customers currently receiving carry-out service in the City’s Service Area.

23. No change.

40. Section 4.1.5 Recology Would the City please outline the process to determine whether customers receive “Disabled Persons Service” free of charge?

The Contractor would be responsible for establishing and maintaining fair criteria for this service.

No change.

41. Section 4.1.7 Recology It is not possible to report all stops missed due to weather by noon, when in most cases routes will go well beyond noon on any given day. Please revise.

The contract has been revised to reflect a later reporting time. The contract has been changed.

42. Section 4.1.9 Recology This section requires the Contractor to provide return trip service for free, unless it can prove it attempted collection but containers were not set out.

The City would like photos to resolve disputes over repeated misses. Specific procedures for how to handle this may be

No changes at this time.

7

Would GPS coordinates of the vehicle, combined with a driver note that containers were not set out, constitute sufficient proof? Would the City consider revising the requirement to leave written notification tags on “inappropriately, improperly prepared, or contaminated with unacceptable materials?” These tags could get lost or damaged by weather. Instead, would the City agree to a follow up call from customer service, conducted the same day, explaining to the customer why the material was not picked up? Please correct the section within the parentheses to say “documented that fact in a log OR with a photograph.”

discussed when the contract is being finalized.

This would be considered, as part of the overall contamination reduction protocol developed by the contractor and city.

The paragraph will be retained as written unless changed as a result of discussions during contract finalization.

43. Section

4.1.11 Recology Could the City please define what a “high standard” is in regard to processed

recyclables? Cross-contamination is a significant issue under new Chinese (and other nations such as Vietnam) regulations. What is an acceptable level of cross-contamination to the City? How can the City and Contractor agree that the contractor is being “full compensated” to recycle or compost materials if the City and Contractor are not aware of what future markets may bear? How does the City suggest contractors hold a third party disposal vendor accountable for what the third party does in their private facilities? Please more thoroughly define the second bullet point

Are operated to minimize cross-contamination of materials that would result in otherwise Recyclable materials being misdirected to a market or disposal where they would not be recovered

e define “fully recycle.” Please define “maximum cost effective recovery.” This is contrary to “fully recycle.” To 100% fully recycle costs more, but is consistent with the City’s goals of waste reduction. If the City’s goal is maximum cost effectiveness, the City will lose out on the best service and recovery efforts for its residents

Could the City please define “industry best practices” with regard to “on-route quality assurance?”

Regarding all questions, the main point is that customers are paying the contractor to use their capabilities to recycling and compost collection materials to the extent reasonable. The objective is not to just make materials “go away,” but to be processed to a level that materials are correctly sorted and send to the correct market and that the contractor perform a reasonable level of due diligence to ensure that those materials are, in fact, recycled.

Beyond that, the City does not intend to be involved with processing or marketing decisions. The City is not going to specify acceptable levels of cross-contamination. The reference to “fully compensated” reflects the fact that the contractor is being paid to recycle and compost materials, not just make them “go away.”

Maximum cost effective recovery, does not mean the cheapest, most minimal level of processing, but rather than the contractor will use due diligence in how materials are collected, stockpiled for processing, processed and marketed to ensure that materials intended to be recycled are actually recycled.

Industry best practices with regards to on-route quality assurance are expected to be continually refined through discussions between contractors, cities and the County.


44. Section 4.1.13

Recology Is the City open to the Contractor utilizing an alternative renewable fuel, such as renewable natural gas or renewable diesel that have lower life cycle emissions than natural gas?

Yes.

Some changes have been made to the contract.

8

Would the City want all the requested reports on a monthly basis, or are there some report elements that the City could do without on a monthly basis (i.e. back up truck hours)? The level of detail in the monthly reports is onerous and could contribute to higher costs. With regards to rust on vehicles, please change “repaint vehicle” to “repair or repaint damaged areas of vehicle.” Would the City please revise to reflect the industry standard size for a spill kit? Currently, the industry standard is 10-gallon spill kit capacities.

Some reports could be submitted less than monthly. Those details can be determined at the time the contract is finalized.

Agreed. The contract will be revised as suggested.

The contract will be revised as suggested.

45. Section

4.1.13 WM With the existing Contractor not needing to factor initial collection truck

procurement into their proposal, will the City please describe the process for evaluating and level-setting other Proponents who will be required to procure new collection trucks at the start of the Contract Term? Waste Management suggests the City consider Base Contract terms requiring new collection trucks at the start of the Contract Term and an Alternative for collection trucks to be no more than 10 years old throughout the life of the Contract.

The contract has been revised to require new trucks with an alternative for vehicles <= 10 years old. The contract has been revised.

46. Section 4.1.13

Recology Please require proposers to utilize all new collection vehicles at the Agreement term. There are safety and environmental concerns when using older trucks at the beginning of a 10-year contract. Ten years is the useful life for most collection vehicles; therefore, it is logical to require proposers to use new collection vehicles at the beginning of the 10-year term. Furthermore, allowing the current contractor to use existing (and potentially aging) inventory allows them a significant cost advantage to the point where it will not make sense for us to submit a proposal.

See answer #46. The contract has been revised.

47. Section 4.1.14

Emerald The current provisions in this RFP provide an unfair advantage to the incumbent because the costs of carts and containers, most of which have been paid for over the last 8 years by the Mercer Island rate payers, are in-place and currently the property of the incumbent. New bidders will incur the costs of new carts and containers – the incumbent will not. Our estimated cost to purchase three new carts for each resident is $1.90 per month or over a million dollars difference in potential comparable bids over the life of the contract. This obviously amounts to a much higher bid cost than that of the current provider and, with the scoring at 70% quantitative, it makes it very difficult for a new bidder to be successful. Additionally, the RFP states that all containers will be owned by the City at the conclusion of this contract. Require all bidders to provide new containers at the start of this contract October 1, 2019 and / or find a way to compare the incumbents price with the other competitive bidders to keep a level playing field. Alternatively, the City should consider mandating new vehicles at the start of the contract as well.

See answer #46 and note that new carts are also required by the base contract with used carts as an RFP alternative. The contract has been revised.

48. Section 4.1.14

Recology When a customer uses their own container for extra material that material should be in a container 32 gallons or less, since containers are manually

The weight limit for extras has been reduced to 50 pounds. The contract has been revised.

9

collected and excess weights can injure the drivers.

49. Section 4.1.14.1

Recology Will the City consider a set fee the contractor will charge for redelivery anytime a request is more than once during the term of the agreement?

No, although the City is open to discussing a different threshold for assessing redelivery fees. The threshold may vary by line of business.


50. Section 4.1.14.1

WM There are additional costs in providing drop boxes with screen top or solid top lids. Would the City consider adding an extra charge for such lids if requested by the customer?

Yes. The Form 2 has been revised.

51. Section 4.1.14.2

Recology Container cleaning fees need to be added in the rate sheet. Agreed. The Form 2 has been revised.

52. Section 4.1.14.5

Recology 60 pounds per bag is unreasonable, as most bags cannot contain this much material without failure.

The limit has been revised downward. The contract has been revised.

53. Section 4.1.17

Recology For contractor-initiated programs, both savings and costs should be considered. Although the City may not have requested the piloted program, it may be interested in the program after the pilot period, in which case costs and savings should both be shared.

Agreed. The contract has been revised.

54. Section 4.1.19

Republic Contractor may not be able to share all of its positions on pending labor actions as they may be protected by the attorney-client privilege, the work product doctrine or confidentiality obligations to employees/labor unions. Therefore, we would like to include a carve-out to this section to address these concerns. Also, we believe that the fees in this section for liquidated damages are quite high and could result in stacking (i.e., the $1000 per day plus $2500, $5000 or $10000). We believe that these should be lower.

The City would be amendable to some restrictions on the information provided to the City, however the City needs to be provided with timely updates on the progress of negotiations, including the nature of disputes and how potential resolutions may affect the City. Restrictions may be discussed during contract finalization.

The higher level fees (after 2 or 3 weeks of missed collections) are substantial, but are appropriate for the level of service disruption that would be experienced by Mercer Island residents.

No changes.

55. Section 4.1.19

Recology Please remove lines 31 through 35 on page 20. This $2,500 per day fee is redundant to the incremental fees states in items 1 to 4. As noted in lines 7 and 8, these incremental fees are the “best estimate of the impacts of the Labor Disruption to Customers and the City.” Therefore, they should be no need for the additional $2,500 per day fee cited in lines 31 through 35 to cover the “Contractor’s failure to plan and execute the provisions of this section.”

The provision has been retained, but the fee has been reduced. The intent of the fee is ensure that the contractor has a reasonable and flexible plan, and then follows it during labor disruptions. This fee is intended to be enforced reasonably. For example, if the contractor provides a minimal plan and then doesn’t follow the plan without notifying the City, the fee provides some recourse to the City to ensure that the contractor provides and executes a reasonable plan to minimize disruptions to City customers.


56. Section 4.1.20

Recology Would the City consider requiring consultation prior to design work? All too often, new commercial and multifamily buildings are erected with little thought given to the placement and access to waste and recycling containers?

The City will endeavor to include the contractor in the review process as soon as it can during a site planning process, but does not necessarily have the ability to involve the contractor in early site design decisions by private parties.

No change.

57. Section 4.1.21

WM Page 21, Line 20: Please consider changing language to, “shall be liable for any damage to property or person caused solely by the actions of the contractor…”

The language has been retained. The City would prefer to not have disputes over whether damage is solely caused by the contractor.

No change.

58. Section 4.1.21

Republic Contractor should not be responsible for damage to pavement or curbing if Contractor is operating its vehicles within the legal weight limits and is not

Some damage may occur even if a vehicle is operating within weight limits.

Some edits have been made to this section.

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negligent.

59. Section 4.1.23

Republic So that bidders can price their proposals accurately, and so that all bidders are using the same information, could the City please provide the number of displaced employees, their average wage rates, and the types of benefits and average accruals that would need to be carried over?

It is impractical to attempt to gather and verify the accuracy of this level of information. It is our understanding that proponents have typically assumed employees at the top tier of wage and benefit tables.

No change.

60. Section 4.1.23

Recology Does the City agree that recycling drivers should be compensated equally to garbage drivers? If so, would the City require all proposers to compensate recycling drivers and garbage drivers equally?

Wage and benefit parity is a qualitative benefit and will be considered during proposal scoring. No change.

61. Section 4.1.26

Republic The words “or as a result of negligence” in the first sentence of the third paragraph need to be deleted. Unacceptable Waste is outside the scope of this agreement, and if it is in the waste stream due to any reason other than Contractor’s knowing acceptance of it, Contractor cannot be liable.

The proposed change is acceptable. The contract has been revised.

62. Section 4.1.27

Recology The Contractor’s ability to perform in the event of an emergency will be dependent on available resources and is likely to be subject to competing demands across jurisdictions. Is the City willing to work with the Contractor on a reasonable emergency response plan?

Yes. No changes at this time.

63. Section 4.1.27

Republic The first sentence needs to be deleted as Contractor cannot agree to provide a third party with use of its labor and equipment. Contractor will agree to use its labor and equipment to assist in a natural disaster assuming the pricing in Exhibit B is acceptable to both parties.

The wording has been changed to clarify that the City would not be using the contractor’s labor or equipment directly.


64. Section 4.2.1.1 and §4.2.4.1

Recology These sections ask that the Contractor collect all Garbage set out “adjacent to” or “next to” Garbage containers. This could be read as requiring the Contractor to clean up customer-spilled Garbage, or improperly set out Garbage. We suggest revising so it’s clear that Garbage set out next to a container must be properly prepared in accordance with the contract requirements.


65. Section 4.2.1.2

WM Page 25, Line 4: Unless the language was intended by the City, please remove, “micro-cans.”


66. Section 4.2.1.3

Recology Does the City have any customer with sunken cans? If so, can you please provide a list of customers with sunken cans? Please remove “Customers shall be allowed to specify that no Extra Units be collected without prior Customer notification.” If a customer places an extra item on the curb, the contractor will assume it is placed for collection and will be charged accordingly.

Yes, there are currently 7 sunken cans at 4 addresses:

2012 FABEN DR 6022 SE 22ND ST

6411 77TH AVE SE

3033 81ST PL SE

The “no extras” flag is important for customers who have others place out extras next to their container. This does not place an unreasonable burden on contractors with electronic routes.

No changes.

67. Section WM In reference to the “once per month collection,” does the City intend for this Yes, all single-family residential service levels include recycling No changes.

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4.2.1.3 service to include embedded recycling and compost? and compostables service.

68. Section 4.2.1.3

WM Please provide the number of sunken can customers currently receiving service in the City’s Service Area. Due to the unsafe nature of this service level, will the City consider removing this service offering?

See answer to question #66. As this is an existing service, the City would like to accommodate current customers but would support the contractor’s migration of those customers to cart service on a voluntary basis.

No changes.

69. Section 4.2.2.1

Republic Line 6: Recycling (and Compostable) charges should be reflected as line items on invoices, particularly in light of China Sword. Recycling is not free, and we need to share the value of recycling on the invoices (see also, Section 5.1.2, lines 16-18).

Line 8: There is an ability to expand the recycling list; there should be an opportunity to contract the list, particularly in light of China Sword.

Line 10-11: Moisture is a contaminant and cardboard should be kept dry. Cardboard should fit inside a cart, not exposed to the elements, particularly in light of China Sword. If cardboard is placed outside of the cart, the Contractor should be allowed to collect the moisture-contaminated cardboard in the Compostables collection truck.

The existing approach has been to embed both services into rates. The City will consider the option if there is compelling evidence that a change is advisable. No such evidence has been provided to date.

The City and contractor can mutually agree on changes to the list of recyclables or material preparation requirements at any point before or during the contract term.

No changes.

70. Section 4.2.2.1

Recology Please revise the following accordingly: “Residential Recyclables shall be collected from all participating Single-Family Residences Customers as part of basic Garbage collection services, without extra at the appropriate charge.” Could the City explain what is meant by “engag[ing] in product stewardship and/or waste prevention activities?” What role would be expected of the Contractor? “Without extra charge” needs to be revised to state “costs included as part of the garbage rate” OR, separate line item on the customer’s bill. Language should include the removal of certain materials when costs increase or market changes and calls for a disposal cost.

See response to #69.

Product stewardship and/or waste prevention activities may include anything from supporting regional collection bans, return to retailer or other initiatives. Contractor roles, if any, would be negotiated between the City and the contractor. This provision is to reserve the rights of the city to support activities that might reduce the materials available to the contractor (for example, bottle deposit legislation that would remove a portion of glass bottled from the collected stream) and to clarify that the contractor does not have “right” to those materials.

No changes.

71. Section 4.2.2.2

WM Please consider adding an extra cart rate for all additional carts beyond initial recycling and compost carts.

Charging for extra recycling carts conflicts with the objective of ensuring that customers have sufficient capacity to contain all materials, including cardboard. If an abnormally high number of customers request second recycling carts, the City is willing to revisit this policy.

The contract includes provisions for an extra cart rate for compostables.

No changes.

72. Section 4.2.2.2 and §4.2.3.2

Recology These sections seemingly allow customers to request a “replacement” cart or “reject” a cart. Please clarify the intent of this language. Our experience is that carts are only replaced if the Contractor determines they have been damaged.

This provision addresses the possibility that a very dirty or obviously damaged compostables (or any) cart is delivered to a household. While we appreciate that tight operations on the part of the contractor should prevent that from ever happening, if it does, the customer is not forced to accept a dirty or damaged cart.

No changes.

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73. Section 4.2.2.3

Recology Could the City please define other “residues?” If any “residues” are found is the Contractor required to collect the customer? “Without extra charge” needs to be revised to state “costs included as part of the garbage rate.”

“Residue” in this case refers to containers that have not been rinsed and have an unacceptable level of contamination. The decision on the threshold between acceptable and non-acceptable will be addressed in the contamination protocol develop by the contractor and City.


No changes.

74. Section 4.2.2.3

Recology This section states that: “No limits shall be placed on set-out volumes for Curbside Recyclables, other than those specifically listed in Exhibit C.” We encourage the City to implement an extras charge for recycling amounts over 96 gallons. Unlimited recycling does not encourage reduced consumption. In addition, offering unlimited recycling has been shown to increase contamination. Furthermore, there are operational costs associated with collecting recyclables.

See response to #69. No changes.

75. Section 4.2.2.3

Republic Would the City make it clear in the contract that food-contaminated recycling shall be collected as garbage and the customer will be charged accordingly?

Both the processing fee and commodity value are negatively impacted by food waste. Food waste instantly cross contaminates other material, and (in today’s reality) end markets instantly reject the whole load, not just the contaminated material. We have cajoled, educated, tagged and forgiven those who contaminate their cart with food waste, and yet food waste contamination has not improved. We need explicit permission to charge a customer for contamination – removing the food waste before the next collection still means that the food has caused the cart contents to be unmarketable.

Yes, this would be part of the contamination protocol and educational materials provide to residents.

No changes.

76. Section 4.2.3.2

Republic Line 24-28: This section adds upward pressure on rates for a program that already exists through King County (and already ratepayer supported). Does the City wish the hauler to duplicate the food scrap bucket program?

Agreed. This provision has been removed. The contract has been revised.

77. Section 4.2.4.3

Recology If the Contractor is not allowed to charge for opening gates or unlocking containers it will increase costs on those customers who do not have such requirements. Is the City willing to reconsider this requirement?

Republic reports that no customers are currently charged lock/gate fees.

No changes.

78. Section 4.2.5 Emerald At a time in which we are witnessing one of the, if not the most unstable recycling market in history, this risky approach to forcing unlimited “free recycling” on commercial customers is detrimental. Recycling is not free and not all businesses require the same, costly, single stream, commingled recycling needs. Commodities have different values and the generator of those commodities deserve to get paid or charged accordingly. Embedded recycling eliminates the ability for Mercer Island’s commercial businesses to make choices for themselves. Businesses in King County are already required to recycle under the King County SWMP, therefore everyone should have a container regardless. Allocating the cost of a commercial recycling program across all businesses will financially benefit the high recycling

The City has removed embedded commercial recycling from the base contract and shifted it to an alternative. The contract has been revised.

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volume generators and penalize low volume generators, while also spreading unnecessary costs on differing businesses. Due to this new proposed provision, bidders will have to assume a worst-case scenario to protect their collection and processing costs, meaning they must assume all businesses recycle as much as possible. This drastically inflates the cost per customer, even though the customer most likely will not even receive the level of service of which they would be forced to pay for. Plus, if markets eventually improve, the ratepayer would not be the beneficiary of their commodity value, the contractor would be. The current approach of allowing the businesses to select their level of service is working and that is proven by Mercer Island’s high diversion rate. We request that the City do not embed commercial recycling costs into the commercial garbage rate, therefore maintaining a standard cost of service. If the City feels the need to ensure recycling services are available, we simply recommend a separate price sheet for commercial recycling. This would make the rate submission of each proposer easily and equally compared and graded, ensure the service is available, and avoid astronomical assumptions made by bidders that will negatively impact the rate payer.

79. Section 4.2.5.2

Recology Can the City clarify that if any amount of materials are found in a container that do not meet the definition of recyclables, that the customer should not be collected? This may have the implication of all recycling being collected as garbage. “Without extra charge” needs to be revised to state “costs included as part of the garbage rate.” Please revise to include a minimum charge for recyclables: The Contractor shall provide Recycling Containers at no additional charge to all Multifamily Complex and Commercial Customers requesting Containers

That threshold determination will be part of the contamination protocol developed by the contractor and city.


No changes.

80. Section 4.2.6 WM Please describe the City’s approval plan and process for multifamily and commercial compostables subscription service. Does the City have internal resources managing the details of such program?

The section has been revised to require no prior notice. The contract has been revised.

81. Section 4.2.6 Recology Could the City please provide details about the requirements for Multi-Family and Commercial customers to receive Compostables service? How long does the City’s approval process normally take?

See Question #80 The contract has been revised.

82. Section 4.2.8 Recology The requested 24 hour turnaround time for delivery of temporary (non-event) containers is unrealistic. Please adjust to three business days from customer request. This timing allows for the contractor to route temporary (non-event) container deliveries more efficiently.

The proposed change is acceptable. The contract has been revised.

83. Section 4.2.9 Republic Line 34-37: The bundled services for special event services was a good idea to try, but unless the garbage, recycling and compostable stations are monitored, the material is too contaminated to be anything other than garbage, even with large point-of-decision signage. To help with the education regarding the need

The contract language will be retained, however, the contamination protocol developed by the contractor and city can address contamination reduction requirements for special events (for example requiring customer-staffed stations).

No changes.

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to keep the separate streams free of contamination, would the City consider offering the bundled services to organizations who have Zero Waste Station monitors or volunteers? If not, would the City consider that the events be given only garbage containers, or that all containers will be disposed as garbage, with the rates adjusted to reflect the reality of contaminated carts?

84. Section 4.2.10

WM What is the City’s current and/or desired level of service at each of its City facilities? Please provide waste stream, size of containers(s) and frequency of pick up.

This information has been requested and will be released via addendum.

Pending

85. Section 4.2.10

Recology Please provide the number and size of containers to be serviced at each City facility, and the frequency of service. For Mercerdale Park/Mercer Island Thrift Shop, please clarify the requested amount of collection annually. Currently, the agreement states “X amount of collection annually.” “No additional charge” should be amended to state “covered by the city wide rate base.”

See question #84.

The contract has been revised to require 125 hauls per year and up to 155 tons per year. Additional hauls or tonnage would be charged at contract rates.

“No additional charge” is sufficient.

Some revisions to the RFP and contract.

86. Section 4.2.11

WM Please provide waste stream, size of containers(s) and frequency of pick up for each of the specified City designated events.

The two current City events are SeaFair and Summer Celebration.

Current service levels are:

Mercer Island Summer Celebration

Qty Size Type 8 32 gal Garbage 8 32 gal Recycle

10 96 gal Organics 4 6 yd Garbage 5 6 yd Recycle 1 15 yd Garbage 1 25 yd Garbage

*all services picked up 1 time

Mercer Island Seafair

Qty Size Type 24 32 gal Garbage 24 32 gal Recycle

1 6 yd Garbage 1 6 yd Recycle 2 15 yd Garbage

* all services picked up 1 time

No changes.

87. Section 4.2.11

WM Does the City intend for the Contractor’s services during these events be no charge or chargeable?

At no charge. No changes.

88. Section 4.3.2 Recology Would the City consider requiring local call center operations? A remote call center would have no knowledge of the local nuances and unique geography of

No, this would limit the RFP to one proponent. The type, capacity and location of a proponent’s call center is part of the qualitative evaluation of proposals.

No changes.

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Mercer Island

89. Section 4.3.2.3

Recology The City should consider on-site inspection of call centers, which should include a review of call center staff knowledge of City-specific needs. This would help ensure a good customer service experience for Mercer Island residents and businesses.

The City evaluation team will consider this. No changes.

90. Section 4.3.2.6

Recology The language “continuously available user friendly internet” should be reworded, as it is a confusing requirement. As currently written, it sounds like the contractor provides internet service. The first sentence is missing punctuation throughout, and contains multiple run-on sentences. Please revise to eliminate confusion

Agreed, this section has been edited to clarify. The contract has been revised.

91. Section 4.3.3 WM Page 38, Lines 24-25: Would the City allow its Contractor to add educational or informational messaging to the back side of the customer invoice instead of the front?

Yes. The contract has been revised.

92. Section 4.3.4.1(6)

Recology How does the City require information that could be coming from a third party? Define “market” prices. Why does the City need this since the process Jeff developed is using Seattle info which is readily available anyhow.

The reference to market prices will be removed. The contract has been revised.

93. Section 4.3.4.1(7)

Recology This section requires the Contractor to report processing fees per ton in its monthly reports. This information is not needed for rate adjustment purposes and, if the Contractor is using an affiliated processing facility, is proprietary and confidential. We suggest not including this requirement.

Agreed, as long as the contractor does not claim rate adjustments for processing costs during the term of the contract. The contract has been revised

94. Section 4.3.5 WM Page 42, Line 21: Is the City’s intent to allow only electronic copies of collateral and not paper copies?

Either should be available, although the electronic version should suffice for the vast majority of customers.

No changes.

95. Section 4.3.5 WM Page 42, Line 40: Please consider allowing for tenants of site visits to be contacted within one week of the request and the site visit to be conducted within 3 weeks.

Commercial recycling has been removed from the base contract. The contract has been changed.

96. Various Recology We noted several requirements to provide free or embedded services which would result in higher rates. The City may wish to consider eliminating some of these services or enabling the Contractor to charge for them. These services include, but are not limited to: free winches for drop box covers (§4.1.14.2), collection of non-putrescible Garbage in 35g cart (§4.2.1.3), free container locks (§4.2.4.3), free lock and gate service (§4.2.4.3), development of a mobile app (§4.3.1), no automated call answering system (§4.3.2.4), and a website accessible in 4 foreign languages (§4.3.2.6).

Lowest possible cost service is not the City’s objective, as can be noted from the decision to move to 60/40 scoring. Container winches and locks without charge, live call response and website accessibility are part of high quality service.

The monthly 35-gallon garbage cart service is a fee-service and not a “free or embedded” service.

The provision of a mobile app is optional, however the quality and availability may be considered during the qualitative evaluation of proposals. If provision of the app is a major cost, a proponent can include a contract exception indicating the cost savings of removing this service.

No changes.

97. Section 5.1.2 Recology Itemization should include a separate line indicating the cost of the recycling program

See response to #69. No changes.

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98. Section 5.1.2 WM Page 44, Line 38: Please consider removing, “changes in Compostables processing fees,” as this is subject to 3rd party costs and not controlled by the Contractor.

The City cannot control fee increases with third parties which are not economically regulated entities or that it does not have contracts with. The City would consider amending the contract to allow for managing compostables as a pass through in the event that compostables processing shifts from an open market to an economically regulated market.

No changes.

99. Section 5.1.2 Emerald Solid waste has always allowed for a direct pass through of landfill cost at King County’s Cedar Hills landfill. In addition, this RFP is proposing an adjustment to help protect changing commodity values in recycling, yet the organics processing component is afforded no adjustment over a ten plus year period. Recent changes in disposal habits of residential and commercial customers, the inclusion of multi-family, and other contributing factors have greatly increased the levels of contamination that have required additional labor and capital investment to maintain a usable organics feed stock. Also, regulatory requirements and associated costs have increased at a significantly higher rate than the standard CPI increase. The City apply the same or similar methodology of passing through rate changes associated with organic processing as solid waste and recycling. The City would draft language to ensure proper reasoning behind the change in rate and the organics processor would have to prove the financial burden.

See response to #98. No change.

100. Section 5.1.2 Emerald Please consider the inclusions of the following language:

“Organics processor may request a price adjustment by way of written notice to the City. The organics processor shall supply supporting documentation for any requested price adjustment. Reasonable price changes based on market conditions, cost analyses, or regulatory changes shall be approved by the City. City will evaluate the supplied documentation to determine if the price adjustment is considered fair and reasonable.”

As noted in Question #98, the composting subcontractor is not a party to the collection agreement and can not request price adjustments under the contractor’s contract. The contractor and the composting subcontractor’s agreement should include provisions for rate increases, including both regular inflation increases and how to handle extraordinary expenses that require auditing and negotiation.


101. Section 5.3.1 WM Page 46, Lines 2-3: Please consider changing language to, “shall be capped at five percent (5%)” in both references to the cap rate.

Agreed. The intention was for both to be 5% The contract has been revised.

102. Section 5.3.1 WM Page 46, Line 14: Please consider changing language to, “Upon the City’s review and verification, absent any City exception to the Contractor’s calculations, the new rates…”

This is acceptable. The contract has been revised.

103. Section 5.3.1 Recology The cap of 6% on CPI should be removed. Improper use of “and” in the 4th paragraph. Change to “an.”

Agreed. The intention was for both to be 5% The contract has been revised.

104. Section 5.3.3 Recology Annual changes in sites that accept yard debris or compost or other recyclables should be part of the annual rate process. Even if the county does not mandate a site, it is reasonable to expect costs will go up. Increases in disposal related to compost and other recyclables should either be passed through in the disposal component of the rates or, at a minimum, be allowed an increase via the annual

See answer to #95 and note that since compostables are part of the “service” component of rates, they are subject to the CPI adjustment each year.

No changes.

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CPI process.

105. Section 5.3.6 Recology This needs to be clarified more to avoid confusion. It needs to be made clear that cost savings that still allow performance under the contract will result in zero change to rates.

Agreed. The language has been clarified. The contract has been revised.

106. Section 5.4 WM Please consider adding “international policy” to the list of changes that could result in material hardship for the Contractor in performing this Contract.

This is very broad and could result in unintended effects. The City expects that the City and contractor would have a mutual discussion in the event that such conditions occur.

No changes.

107. Section 6.1 WM Please consider adding language that allows time for a reasonable resolution, before performance fees could be assessed. We suggest a 7-day grace period.

Customer quality of service has likely been significantly impacted by the time that a service failure has been elevated to the point that the event or series of repeated events has been documented and performance fees have been assessed. In this case, curing the problem does not reverse the service failure already experienced by customers.

No changes.

108. Section 6.2 Republic The right to terminate for default should be mutual. If the City fails to perform, then Contractor should have termination rights after notice and an opportunity to cure.

It is extraordinarily unlikely that the City would ever fail to perform under this contract. If there are specific circumstances that you believe are likely failures on the part of the City, you should identify them in your proposal, along with suggestions of how to mitigate those failures.

No changes.

109. Section 6.2(4) Recology Define “uncontaminated.” Nearly all loads are contaminated in some way. This section addresses collecting recyclables (e.g. an entire residential route) and then disposing of them as garbage rather than delivering them for processing.

No changes.

110. Section 8.1 WM Page 53, Line 2: Please consider changing language to, “hauled by common or private carriers, for which the Customer receives a payment for such material…”

This is overly burdensome in that it does not allow for recycling materials that occur at a cost or with no exchange of money.

No changes.

111. Section 8.1 Recology We would suggest revising this section to include language stating that the City intends to make good faith efforts to protect the integrity of the contract and its solid waste and recycling system, as a general rule, and not necessarily only when requested by the contractor.

The City prefers to retain the existing language. The City intends to have a good partnership with the contractor, but will rely on the Contractor to monitor conditions and notify the City of any potential problems with the “integrity of the contract and its solid waste and recycling system” so they can be addressed.

No changes.

112. Section 8.2 Recology Please provide more clarification on this section. There is some financial data that is proprietary.

None of the listed data is proprietary and needs to be accessible in the event that the City audits revenues for verifying administrative fee payments.

No changes.

113. Section 8.3.1(4)

Recology The pollution liability insurance described is claims-based, but such coverage is typically occurrence-based. Could the City revise this section as follows: Contractor’s Pollution Liability insurance coverage covering any claim occurrence for bodily injury, personal injury, property damage, cleanup costs, and legal defense expenses applying to all work performed under the contract, including that related to transported cargo. The City shall be named as an additional insured under the Contractor’s Pollution Liability insurance policy.

The City will provide a response to this via RFP addendum. Pending

114. Section 8.3.6 Recology Our vicarious liability for the acts of those working on our behalf are covered under contractual liability. Responsibility for acts of subcontractors can be addressed in express contractual provisions to that effect and do not need to be included in the insurance provisions.

The City will provide a response to this via RFP addendum. Pending

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Moreover, we cannot promise that all subcontractors will maintain the same levels and types of insurance that we carry because subcontractors may play very small roles in the agreement and the size of their businesses may be substantially smaller. Therefore, we recommends striking this section entirely and including separate insurance requirements for subcontractors as follows: Contractor will request all subcontractors performing work in connection with this Agreement to maintain the following minimum insurance: Workers’ Compensation in accordance with applicable law or regulation, Employer’s Liability with limits of $1,000,000, Commercial General Liability with limits of $1,000,000 per occurrence and $2,000,000 in the annual aggregate, and Automobile Liability insurance with limits of $1,000,000.

115. Section 8.5.1 Republic Contractor cannot provide an indemnity for Hazardous Waste, as this is outside the scope of the contract. Section 8.5.1(b) and all language after it in Section 8.5.1 needs to be struck.

The existing language will be retained for now. If there are specific suggestions or questions on this coverage, please provide them during the RFP Q&A period.

Pending

116. Attachments Republic When will the City provide attachments A-C? Attachments to the RFP will be provided when the final RFP is issued.

No change

117. Recycling Adjustment Proposal – Index Values

Recology Table 1 – Sample Seattle Index Value uses the LA PPI/OBM price for OCC, ONP, and Mixed Paper. Please review to use the Pacific Northwest commodity market prices for these grades, per the May 2018 PPI/OBM.

Please note that the disclaimer from PPI reads: “While the information contained in this report has been obtained from sources believed to be reliable, RISI does not warrant or guarantee the accuracy and completeness of the open market transactions for delivery this month, US$.”

This is not what Seattle uses and thus would need to be independently compiled. One of the objectives is to find an independently reported reference value to track trends without necessarily accurately reflecting the actual received by the contractor.

Pending

118. Recyclables Market Adjustment- Seattle Centric Methodology

WM The utilization of index data is dependent on the City of Seattle and may be too Seattle-centric. It creates a situation where other cities will be dependent on Seattle for an element that is unrelated to their specific contract. Additionally, the City of Seattle’s current method is built/modeled from a processing agreement’s facility where proximity to the Port of Seattle and SPU’s transfer stations are specifically contemplated. This method would need to be adjusted to reflect non-Seattle MRFs.

Yes, it does depend on the City of Seattle. If Seattle were to discontinue reporting this, an alternative would need to be developed (perhaps by a group of cities) and made available. In that event, local indexes and different composition percentages could be used.

As long as the Seattle data is available, it is possible to use that as a reference point, understanding that it is not intended to reflect the actual value of recyclables collected under this contract.

Pending

119. Recyclables Market Adjustment- Risk Mitigation

WM The proposed risk mitigation mechanism does not mitigate all commodity-related risk. Changes in material composition, residue level, and transportation to market costs are not addressed, leaving considerable risk, and hence, cost uncertainty.

No, it doesn’t. The only method that would mitigate all risk is cost/revenue-based economic regulation, which is not manageable by a city the size of Mercer Island.

Pending

120. Recyclables Market

WM Indices for global commodities can be subjective, unrelated to actual markets, and have a timing lag. When utilized for payments, indices may not be

That is true. The Seattle reference point is simply to allow overall market trends in value to be tracked without each city replicating

Pending

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Adjustment- General Index

consistently reliable into the future due to resetting of markets after China disruption.

its own composite index.

121. Recyclables Market Adjustment- General Index

WM WM would like more specific information (step-by-step) for the method the City of Seattle staff use to compile index values.

Proponents are welcome to review the historical results and methods used by the City of Seattle. As a practical matter, a proponent could chart the movement of the reported Seattle values with the proponent’s own internal results and determine whether the change is a usable proxy for commodity value changes. It is not expected to actually match the values (the Seattle reported prices are likely below actual revenues by local MRFs).

Pending


WM Will proponents have access to City of Seattle staff for questions regarding the index compilation methods? What level of contact will proponents/selected provider be afforded during the contract term?

The City of Mercer Island does not manage Seattle staff. Pending


WM What is the plan if the City of Seattle elects to adjust their current index compilation method?

The City and the contractor would need to determine whether the Seattle reported values are still usable and/or whether to shift to a different model.

Pending


WM How does the model account for variations in composition from commercial and residential sources?

It doesn’t. The purpose of the Seattle values is to simple track approximate changes in the market.

Pending


WM What is the City’s reasoning for using LA domestic index rather than PNW index?

The City of Seattle uses that index and so that is the information that is available. Both the specific indexes and composition analysis are defined by their processing contract and would be used as a proxy for value changes in commodity markets. Their inferred market value is NOT expected to directly reflect contractor revenues, however, the % change in Seattle’s values is expected to roughly correspond to the % change in the contractor’s revenues.

Pending

126. Recyclables Market Adjustment- Non-Fiber Index

WM Please explain the reasoning for utilizing the MTJ index for non-fiber. WM typically uses the Secondary Materials Index for this commodity.

See #124. Pending

127. Recyclables Market Adjustment- ONP, Mixed

WM Please explain how the City plans to differentiate mixed paper and newspaper. Waste Management in concerned that the sort percentages could vary between proponents. What does the City expect to do if there is no domestic or export market for ONP? WM suggests the commodity list only include OCC and mixed

See #124. Pending

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Paper, OCC Index

paper (remove ONP).


WM Will the RFP set an initial model for the proponents or will we need to project the baseline? We are concerned if the composition changes significantly after a baseline is set that will add too much risk on the Contractor. How does the City plan on addressing this concern?

The RFP would set the baseline so that all rate proposals are comparable. The baseline could be the average of the market for the past five years. Composition changes over time would be addressed by the Seattle sorting timeline specified by their processing contract.

Pending

129. Recyclables Market Adjustment- Glass Index

WM Glass is indexed by color. However, glass is produced at our MRFs as a mix. Consequently, commodity risk remains, and with it, cost uncertainty.

See #124. Pending

130. Recyclables Market Adjustment- PET and HDPE Index

WM PET and HDPE are two separate commodities. Please explain the City’s rationale for mixing the two commodities.

See #124. Pending

131. Recyclables Market Adjustment- Other Index

WM What is the City’s reasoning for excluding residue and mixed plastics from the commodities? Will the index list directly match the commodity list in the contract? Or will each proposer submit their own list?

See #120. The point of using Seattle as a reference point is to remove the management work involved in setting up a separate index, composition percentages and other such details.

Pending

132. Recyclables Market Adjustment- Material Sorting

WM What is the City’s plan to determine the composition of recyclable materials? What sampling methodology and frequency does the City plan to use?

See #124. Pending

133. Recyclables Market Adjustment- Material Sorting

WM Does the City intend to use the same recyclable material composition percentage for each proposer or will each proposer use their individual percentage? Is it expected that the composition will change over time? Does that defeat the purpose of a baseline cost built into the contract from the start?

See #124. Pending

134. Recyclables Market Adjustment- Payment Calculation

WM Waste Management suggests a conference call or meeting to better understand the payment formula proposed in the draft. Why doesn’t the formula just account for adjustment from baseline?

Each proponent providing industry review comment has met with the City to discuss their comments.

Pending

135. Recycling Adjustment Proposal – Objectives

Recology Second bullet: We propose to eliminate the current audit-free model and instead use third-party auditors, such as FCS, to share our commodity values with the City and ensure accuracy and transparency.

Third bullet: Please define “independent reference point.”

The cost of the audit would likely be prohibitive for the City. Further, the City would need to invest a significant effort into establishing audit conditions regarding how costs are allocated, how differences in materials sales and processing levels are accounted for and otherwise due its due diligence on the results

Pending

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of an audit.

An independent reference point is an unrelated party or reported value.

136. Recycling Adjustment Proposal – Proposed Approach

Recology First bullet: Seattle’s mix of materials, scope of contract, and facility operations are all different than other cities and are not universally applicable. Please revise proposed approach to “use weighted commodity values reported by the City of Seattle as a composite index.” Second bullet: Revise proposed approach to use “average value for the past five years at the time the contract is established.” The past five years are not representative of current market conditions. China’s National Sword policy and associated market conditions have created an unprecedented situation and should be treated as such. Second bullet: CPI and inflation should not be included in considerations of commodity market values. Please remove. “The percent change in the most recent reported Seattle value” should not dictate value of material for other cities. Average weights should be calculated based on actual in-bound material from city.

Understood. See #124.

Understood. However, the initial value chosen is unimportant other than it establishes the baseline of how much revenue is included in rates versus what will be considered under (made up by a charge) or over (rebated) baseline.

Why not? If the baseline value is included in rates, and rates escalate by CPI, then the inferred baseline amount is increasing by CPI. To not account for this in the adjustment calculations would lead to inaccurate results.

Pending

137. Recycling Adjustment Proposal – Difficulties

Recology First bullet: Please define, “reserve a cushion via administrative fee or rate component.”

Second bullet: Remove the statement, “and then use an internal adjustment factor to adjust to the external reference index when preparing a RFP rate proposal.” This is overly complicated and requires significant staff/cost to accomplish. As noted in comment 130 above, we propose to end the “audit-free model” and instead communicate the commodity values with the City so that all parties are knowledgeable.

Some cities have utility funds, some have administrative fees that support a designated City fund that could be used to pay down or receive variances due to markets. In that case, it would not be on customer’s bills as a line item. Alternatively, a city may choose to have the market credit/debit listed as a line item on customer invoices.

It is unlikely that using a audited cost/revenue cost basis would reduce the effort required over the term of the contract compared with simply tracking and adjusting based on an established reference point.

Pending

138. Recycling Adjustment Proposal

Republic Much of the information and data for the “Seattle Index” comes from our facility, and Seattle pays for a year-long project (at great cost to the City). The project informs commodity percentages and contamination levels from collection vehicles that only service the City of Seattle. The results are then used for the next four to five years.

Yes, the commodity mix is not assumed to be the same, only approximate. See #124.

Pending


Republic PPW OBM Pricing LA Area doesn’t work in the China Sword era. We recommend PPW OBM Pricing Pacific Northwest. Recycling Markets is the only publication that includes metals, plastics and glass, but that publication does not come close to what the material is really sold for

See #124. Pending


Republic The baseline should be the commodity value at the beginning of the contract, and then it should fluctuate based on the changed value of the commodity (adjusted every six months). Since commodity pricing is based on supply and demand, there is no basis to include commodity value in the normal price increase (CPI, WST or flat rate).

See #135. Also, it is quite possible that markets will recover once contamination is reduced and alternative markets are developed. Including revenue values in the rates that are too low could unnecessarily increase the rebate necessary to adjust revenues.

Pending

22


Republic The perception of the makeup of commercial recycling is misleading. While commercial loads do have more cardboard, the contamination is 3x as much as the residential stream. In addition, commercial sector contamination includes large bulky items that have caused severe damage to our recycling processing equipment, which drives up the cost of the facility and, therefore, processing.

Contamination will be addressed separately through the protocol (including cutting recycling off from repeat offenders).

Pending


Republic Also, currently the MRF charges users a processing fee. Today, the cost to process is around $100/ton given the need slow the process lines, increased labor and investment in new technology – all needed to meet the new international contamination threshold. We advocate for this fee to be included in the base rate and part of the annual adjustment (Seattle, through its separate contract with our MRF, currently pays the processing fee directly). However, there needs to be language in the contract that accounts for a Change of Conditions that would adjust the base rate if the processing fee were to increase beyond the annual adjustment, and it would not be unreasonably denied. We anticipate that the Contractor would need to document the reason for a jump in the processing fee.

It is expected that proponents will include processing costs in their proposed rates, as they always have in contract cities. While it may be possible to “open” the contract for changes in processing costs, the bar would need to be very high to justify the auditing review costs. Proponents could propose an adjustment process as a contract modification in their proposal

Pending


Republic Regarding risk sharing, we support a 50% commodity value revenue sharing with ratepayers. This adjustment is best made every six months.

See #135. Pending