Loading...
HomeMy WebLinkAbout06.B- Council Office s.B DOC ID: 2057 A CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION In Support/Opposition From: Chas A. Kelley M/CC Meeting Date: 10/15/2012 Prepared by: Cheryl Weeks, (909) 384-5188 Dept: Council Office Ward(s): All Subject: Discussion and Possible Action Re: Request for Proposals for Franchising of All Components of the City's Solid Waste Services. (At Meeting of October 1, 2012, Item Continued to October 15, 2012.) Financial Impact: The processing of refuse, recyclables and green waste is accounted for in the Integrated Waste Fund No. 527. This approval will allow the City to contain costs until longer-term agreements and plans are established as a result of the expiration of the Waste Delivery Agreement with the County of San Bernardino. Motion: Direct the City Manager to Issue "Request for Proposals for Solid Waste Collection, Receiving, Processing, Transfer and Disposal Services" Forthwith Including the Approval and Implementation of the Timeline Discussed in the Staff Report. Synopsis of Previous Council Action: Item was tabled at the September 17, 2012 meeting. Background: «Inert background here>> Supporting Documents: Updated: 10/2/2012 by Linda Sutherland A Packet Pg. 21 Entered Into Rec. at MCCICDC Mtg: IS/D )2 �gruauA.°c by: 21!111!-n�-- 4 Agenda Item No: 4 — ° F by: City CleWCDC Secretary City of San Bernardino OFFICE OF THE CITY ATTORNEY CITY OF SAN BERNARDINO JAMES F. PENMAN CITY ATTORNEY Legal Opinion No. 12-1-A TO: Jim Smith, Interim Director of Public Works FROM: Donn Dimichele, Deputy City Attorney DATE: October 15, 2012 RE: Hiring of City Refuse Employees by Franchisee CC: Patrick Morris, Mayor Council Members City Clerk City Treasurer Andrea Travis-Miller, Interim City Manager Jason Simpson, Director of Finance Richard D. Luczak Tom Clark Paul Glassman Joseph Adams Steve Dukett International Union of Operating Engineers,Local 12 ISSUE You have asked this office for an opinion on the legal requirements for a proposed purchaser of the City's refuse franchise"to comply with Federal,State,County,and local laws,ordinances,rules and regulations that the selected contractor offer employment to all 300 NORTH °D" STREET • SAN BERNARDINO, CA 92418-0001 • (909) 384-5355 • FAx (909) 384-5238 )NOT PRINTED AT PUBLIC EXPENSE) qualified, displaced City employees as a result of franchising collection services." Although the request referenced only "collection services," the subject line of the requesting memorandum referenced the hiring of"all qualified Municipal Solid Waste and Street Sweeping employees." The question in issue therefore will be addressed with respect to both solid waste collection employees and street sweeping employees. CONCLUSION It is highly unlikely a court would invalidate a provision requiring the hiring of City solid waste disposal employees by a franchisee. A court might invalidate a provision for the hiring of street sweeping employees,but that ruling would be based on the outsourcing of the services rather than the hiring of the displaced employees. ANALYSIS I. General Power to Contract The issue for discussion concerns the validity of a proposed contractual provision. Accordingly, analysis of the issue starts with general principles of contract law. As a general matter,parties to a contract"are entitled to contract for anything that is not illegal." (South-Western Pub. Co. v. Simons (9th Cir. 1981) 651 F.2d 653, 657.) It is generally recognized that "[ff reedom of contract is an important principle." (Kaufman v. i Goldman(2011)195 Cal.AppAth 734,745,internal quotation marks omitted; VL Systems,Inc. v. Unisen, Inc. (2007) 152 Cal.AppAth 708, 713.) "The prevailing public interest is the rule that parties should generally be free to contract with each other upon such terms as they agree." (Pearl v. General Motors Acceptance Corp. (1993) 13 Cal.App.4th 1023, 1030.) 2 As the United States Supreme Court has stated, "It has been held that the right to make contracts is embraced in the conception of liberty as guaranteed by the Constitution." (Chicago, B. &Q.R. Co.v.McGuire(1911)219 U.S.549,566,31 S.Ct.259,262.) It is similarly recognized in California case law that"public policy requires and encourages the making of contracts by competent parties upon all valid and lawful considerations, and courts so recognizing have allowed parties the widest latitude in this regard . . . ." (Bovard v. American Horse Enterprises, Inc. (1988) 201 Ca1.App.3d 832,839.) The principle of freedom of contract applies to a charter city such as San Bernardino. "A city charter is construed to permit the exercise of all powers not expressly limited by the charter or by superior state or federal law. Restrictions on a charter city's powers may not be implied." (Taylor v. Crane (1979) 24 Cal.3d 442,450-451, citations omitted.) Freedom of contract is not,of course,unlimited. In the McGuire case cited above,the United States Supreme Court stated that "freedom of contract is a qualified, and not an absolute, right. There is no absolute freedom to do as one wills or to contract as one chooses. The guaranty of liberty does not withdraw from legislative supervision that wide department of activity which consists of the making of contracts, or deny to government the power to provide restrictive safeguards." (Chicago, B. &Q.R. Co.v.McGuire,supra,219 U.S. 549, 567,31 S.Ct. 259, 262.) A contract may be prohibited if it is either contrary to an express provision of law or contrary to "public policy." California Civil Code section 1596 states: "The object of a contract must be lawful when the contract is made . . . ." Section 1667, in turn, states: "That is not lawful which is: 3 "1. Contrary to an express provision of law; "2. Contrary to the policy of express law, though not expressly prohibited; or, "I Otherwise contrary to good morals." Hence,in analyzing the issue under discussion,the relevant questions are whether the rehire provision of the proposed agreement would be considered by a court to be contrary to any express provision of law or contrary to "public policy." II. Express Provisions of Law Potentially Affecting Rehire Provision A. Charter and Municipal Code Our research has disclosed no Charter provision specifically addressing the collection of solid waste. The Charter provides generally in section 40(aa)that the Mayor and Council"shall have power to pass all orders,resolutions and ordinances and to do and perform any and all other acts and things necessary or proper to complete execution of the powers vested by law or this Charter, or inherent in the municipality, or that may be necessary or proper for the general welfare of the City or its inhabitants." Solid waste disposal is specifically addressed in Chapter 8.24 of the San Bernardino Municipal Code (SBMC), "Refuse and Solid Waste." Section 8.24.050 of that Chapter provides that for purposes of collecting refuse and waste, "the City may use City personnel, enter into contract agreements with private I hauling firms or approve franchise agreements to perform such collection. Solid I waste enterprises operating pursuant to such a contract or franchise agreement shall meet the terms, rates, standards and services specified in the contract or franchise i 4 1 i I agreement which shall be comparable to services established by the City. . . . The City may,at its option,enter into contracts with solid waste enterprises for some or all services related to the disposal,transfer,recycling,collection,billing or customer service related activities." While section 8.24.050 does not specify state that the City can require a private contractor to rehire displaced City employees,the requirements in the section that a private company"meet the terms. . .specified in the contract or franchise agreement,"and that the terms"be comparable to services established by the City" are at least fully consistent with the inclusion of a rehire provision, since it can be presumed that former City employees would provide services comparable to those established by the City. Moreover,because as stated previously, restrictions on a charter city's powers may not be implied (Taylor v. Crane,supra,24 Ca1.3d 442,451),the lack of express authorization or prohibition means the rehire provision is permissible unless otherwise contrary to law. B. State Law We have found no provision of state law prohibiting the rehire provision, and in general state law leaves to a city's discretion the terms on which it may arrange for solid waste disposal. The state regulates solid waste disposal through the California Integrated Waste Management Act of 1989(Pub.Res.Code,§40000,et seq.). The Act requires local agencies to divert from landfills half of the trash they produce, either by recycling or other means. Local agencies must enact comprehensive waste management plans that will accomplish 5 the required diversion. (Valley Vista Services, Inc. v. City of Monterey Park (2004) 118 Cal.App.4th 881, 886.) How a local agency goes about complying with this mandate, however, is largely left to the discretion of the agency. Public Resources Code section 40059(a) provides: "Notwithstanding any other provision of law, each county, city, district, or other local governmental agency may determine all of the following: "(1)Aspects of solid waste handling which are of local concern,including,but not limited to, frequency of collection,means of collection and transportation,level of services,charges and fees,and nature,location,and extent of providing solid waste handling services. "(2)Whether the services are to be provided by means of nonexclusive franchise, contract,license,permit,or otherwise,either with or without competitive bidding, or if,in the opinion of its governing body,the public health,safety,and well-being so require, by partially exclusive or wholly exclusive franchise, contract, license, permit,or otherwise,either with or without competitive bidding. The authority to provide solid waste handling services may be granted under terms and conditions prescribed by the governing body of the local governmental agency by resolution or ordinance." Public Resources Code section 49300 similarly provides: "The legislative body of a city may contract for the collection or disposal,or both,of garbage,waste, refuse,rubbish, offal, trimmings, or other refuse matter under the terms and conditions that are prescribed by the legislative body of the city by 6 resolution or ordinance." Sections 40059(a) and 49300 thus not only recognize the authority of a city to contract for solid waste disposal,but also authorize it to do so under terms and conditions prescribed by the governing body,without placing any express limitation on the terms and conditions that may be prescribed. The statutes reflect,therefore,an intent on the part of the Legislature to grant broad authority to local governing bodies in determining how to arrange for solid waste disposal,including the use of exclusive or non-exclusive franchises. Case law similarly recognizes cities' broad authority to determine local waste disposal matters. (See, e.g., Valley Vista Services, Inc. v. City of Monterey Park, supra, 118 Cal.AppAth 881, 888 ["local agencies through their traditional police power have played the dominant role in local sanitation matters"]; Waste Resource Technologies v.Department of Public Health(1994)23 Cal.App.4th 299,308-309 [in enacting section 40059,the Legislature recognized that "details of actual day-to-day operations could not be resolved in Sacramento," and that "those details should more appropriately be specified by local authorities with greater knowledge of local conditions"].) Given this general deference to local authority in matters affecting local aspects of waste disposal,it is highly unlikely that the absence of a state statute expressly permitting a rehiring provision in a franchise agreement was intended by the Legislature to preclude the inclusion of such a provision. Therefore it is our opinion that the state laws pertaining to solid waste disposal do not prohibit the rehire provision. C. Federal Law The federal government regulates solid waste disposal through the Solid Waste 7 Disposal Act,Title 42 United States Code section 6901 et seq. In enacting the Act,Congress found that the increasing amount of solid waste being generated, and the problems in disposing of solid waste without damaging the environment, "have become a matter national in scope and in concern and necessitate Federal action. . .to reduce the amount of waste and unsalvagable materials and to provide for proper and economical solid waste disposal practices." (Id., § 6901(a)(4).) However,in the Act itself,Congress expressly disclaimed any intent to displace local regulation of solid waste disposal,finding that"the collection and disposal of solid wastes should continue to be primarily the function of State, regional, and local agencies . . . ." (Ibid.) Based in part on that disclaimer, the United States Supreme Court in City of Philadelphia v. New Jersey (1978) 437 U.S. 617, 98 S.Ct. 2531 held that a New Jersey law prohibiting the importation into the state of most solid or liquid waste that originated or was collected outside the state was not preempted by the Solid Waste Disposal Act,(though it was invalid in any event because it violated the Commerce Clause). (Id.,437 U.S. at p. 620.) As with state law,we have found no provision of federal law addressing the validity of a rehire provision such as the one at issue here. In view of the absence of a prohibition on such a provision,and the express recognition by Congress that collection and disposal of solid wastes should continue to be addressed primarily at the state and local levels,we conclude federal law does not preclude the inclusion of the rehire provision in the proposed franchise agreement. 8 D. County Laws We were also asked to consider the possible effect of San Bernardino County laws on the provision in question. While we have found no County law addressing the validity of such a provision(see generally San Bernardino County Code,Title 3,Division 3,Chapter 8, "Waste Management"), the more correct answer is that if there were such a law it would not restrict the City in any event. In Great Western Shows, Inc. v. County of Los Angeles (2002) 27 CalAth 853, 871, the California Supreme Court, quoting from an earlier decision of that court, said: "'[W]hen a municipal corporation is organized within the limits of a county,then so much of the territory of such county as is comprehended within the municipal limits of such corporation is,so far as local government is concerned,withdrawn from the county, and any ordinances passed by the latter can have no binding or any force upon the municipality as to any matters or subjects as to which the latter is vested with the power to enact prohibitory or regulatory local laws..'" The Great Western court further noted,again quoting from a previous California Supreme Court decision: "It is not to be supposed that it was the intention of the people, through their constitution,to authorize a county to exercise the same power within the territory of the city as the city itself could exercise, or to confer upon the county the right to interfere with or impair the effect of similar legislation by the city itself." (Id.,at pp.870-871,internal quotation marks omitted.) Rather,the court stated,the intent of the California Constitution was"to deprive the county of any power to annul or supersede 9 the regulations of the city upon the subjects which have been confided to its control." (Id., at p. 871, internal quotation marks omitted.) As previously noted,Public Resources Code sections 40059(a)and 49300 expressly vest in the governing body of a city the power to determine the terms and conditions on which to contract for solid waste disposal. Accordingly,any County law restricting such terms and conditions would "have no binding or any force upon the municipality . . . ." (Great Western Shows, Inc. v. County of Los Angeles, supra, 27 CalAth 853,871.) III. Public Policy While, as previously stated, courts "may, in appropriate circumstances, void contracts on the basis of public policy," (City of Santa Barbara v. Superior Court (2007) 41 CalAth 747, 777, fn. 53), "unless it is entirely plain that a contract is violative of sound public policy,a court will never so declare." (Ibid.,internal quotation marks omitted.) The courts "should not blithely apply public policy reasons to void contract provisions." (Kaufman v. Goldman, supra,195 Cal.App.4th 734, 745, internal quotation marks omitted.) Further complicating the matter is that"'public policy' is inherently not subject to precise definition.'" (Safeway Stores, Inc. v. Retail Clerks Intern.Association (1953)41 Ca1.2d 567,575.) Generally speaking,"'anything which tends to undermine that sense of security for individual rights, whether of personal liberty or private property, which any citizen ought to feel, is against pubic policy."' (Ibid.) "It is primarily the prerogative of the Legislature to declare what is against public policy . . . ." (Tunstall v. Wells (2006) 144 Cal.AppAth 554, 564.) "[A]side from constitutional policy,the Legislature,and not the courts,is vested with the responsibility to 10 declare the public policy of the state." (Green v. Ralee Engineering Co. (1998) 19 Ca1.4th 66, 71.) "A public policy that has not been clearly expressed by the Legislature should at least be fundamental, substantial, and firmly established." (Tunstall v. Wells, supra.) As already discussed,we are aware of no local,state or federal statute or ordinance prohibiting a rehire provision in a solid waste disposal contract. The question therefore is whether a public policy against such a provision can either be inferred from legislative enactments or otherwise found to be so firmly established as not to require legislative recognition. The only potential such policy that comes to mind concerns the right of individuals to free access to the job market and the right of employers to hire the best qualified employees. Both of these interests have been recognized as supported by public policy. In Sail'er Inn, Inc. v. Kirby(1971)5 Cal.3d 1,17,the California Supreme Court noted that"the state may not arbitrarily foreclose any person s right to pursue an otherwise lawful occupation," and further stated: "The right to work and the concomitant opportunity to achieve economic security and stability are essential to the pursuit of life, liberty and happiness." And in Reeves v. Hanlon (2004) 33 Cal.4th 1140, 1145, the same court noted "the right of employers to compete for talented workers." Arguably, a rehire provision might violate either or both of these policies by unreasonably discriminating in favor of City employees without regard to their actual qualifications or competence. In Lucchesi v. City of San Jose (1980) 104 Cal.App.3d 323,the court held that a preference for current city employees in a firefighter examination violated both the city charter(which required that civil service appointments be based on merit and 11 fitness) and the equal protection clause of the California Constitution. The court found objectionable the fact that all city employees - including those with no firefighter experience-scoring over 80 percent on a written test had to be offered employment before any non-employee could be considered, no matter what his or her score, experience, or other qualifications. With respect to the equal protection issue, the Lucchesi court found the preference for city employees did not"have any reasonable basis or bear any rational relationship to a conceivable,legitimate state purpose" (id.,at p.333),for two reasons. First,the preference considered"only the status of employment rather than performance,"without regard to an employee's "attendance, quality of work, or other substantive factors." Thus, a City employee with a poor work record,but a test score of 80 percent,would be preferred over a non-City employee scoring 100 percent. (Id., at p. 329.) Second,the preference was given regardless of whether a city employee possessed "experience related to the position sought." Thus,a city employee with no experience as a firefighter would be preferred over a non-employee with actual experience as a firefighter in another jurisdiction. (Id., at pp. 329-330.) Here, the proposed rehire provision (as we understand it) suffers from the first infirmity,in that there are no past performance standards a refuse employee need have met in order to be hired by the franchisee,other than the minimum necessary to become and to remain employed by the City. However, the provision does not suffer from the second infirmity,as it benefits only refuse employees,who necessarily have experience related to 12 the positions sought. The rehire provision would not, as did the preference in Lucchesi, simply prefer any and all city employees over anyone not employed by the city. Moreover, there is reason to question the viability of Lucchesi s equal protection analysis. As stated,the Lucchesi court relied on the California Constitution in finding there was no"reasonable basis' or"rational relationship'to support the preference for purposes of equal protection. The court saw no need to consider the federal Constitution,because it noted that the California Supreme Court had, independently interpreted the equal protection provisions of the state Constitution. (Id., at p. 32,fn. 8.) However, while recognizing its authority to interpret the state Constitution independently, the California Supreme Court has subsequently stated, that "equal protection provisions in the California Constitution 'have been generally thought in California to be substantially the equivalent of the equal protection clause of the Fourteenth Amendment to the United States Constitution."' (Manduley v. Superior Court (2002) 27 CalAth 537,571.) And a California Court of Appeal has noted that"the California Supreme Court has rejected the notion that the rational basis test is more rigorous under California law than under federal law." (Walgreen Co. v. City and County of San Francisco (2010) 185 Cal.App.4th 424,434,fn. 7.) Notably,cases applying the federal equal protection guarantee do not require that employment preferences satisfy the degree of scrutiny the Lucchesi court appeared to apply. As the Lucchesi court recognized, the applicable equal protection standard in this context is the rational basis test. While as stated there is a fundamental right to work, "there is no fundamental right to engage in a particular occupation for equal protection 13 purposes." (Breneric Associates v. City of Del Mar(1998)69 Cal.App.4th 166,187,fn.7,italics added.) Accordingly,"'the courts have concluded that legislative enactments affecting the right to work are tested under a"rational basis"test because there is no fundamental right to work at a particular occupation or for a particular employer."' (Landau v. Superior Court (1998) 81 Cal.App.4th 191, 210.) "Under the rational relationship test,the legislative action will be upheld unless'the legislative facts on which the classification is apparently based could not reasonably be conceived to be true by the governmental decisionmaker. " (Id., at pp. 186-187.) Since all that is required is a conceivable rational basis for the action, it has been observed that, "Proving the absence of a rational basis can be an exceedingly difficult task. In some circumstances involving complex discretionary decisions, the burden may be insurmountable." (Las Lomas Land Co.,LLC v. City of Los Angeles(2009)177 Cal.App.4th 837, 859.) "The rational basis test is extremely deferential and does not allow inquiry into the wisdom of government action." (Id., at p. 858.) Applying the rational basis test, the federal courts have consistently upheld employment preferences that, like the proposed rehire provision, depend upon an individual's status rather than on any necessary correlation between his or her qualifications and the requirements of the job. The most obvious example is the veterans' preference. In Personnel Adm'r of Massachusetts v. Feeney (1979) 442 U.S. 256, the United States Supreme Court upheld a state veterans' hiring preference against a challenge that it unfairly discriminated against women since most veterans were men. The preference was 14 absolute, in that all veterans who qualified for state civil service positions had to be considered ahead of any qualifying nonveterans. (Id., at p. 259.) The court acknowledged that the preference was not based on any job-related characteristic. "The law overtly prefers veterans as such. . . . [Ijt does not purport to define a job-related characteristic. To the contrary,it confers upon a specifically described group- - perceived to be particularly deserving -- a competitive headstart." (Id., at p. 277.) Significantly, while the court further acknowledged that enacting such a law, with its discriminatory effect on women,might be unwise,it made clear that this decision was for the state legislature and not the courts: "Absolute and permanent preferences, as the troubled history of this law demonstrates, have always been subject to the objection that they give the veteran more than a square deal. But the Fourteenth Amendment'cannot be made a refuge from ill-advised . . . laws."' (Id., at pp. 280-281.) Interestingly,the Lucchesi court acknowledged the consistent line of cases upholding veterans' preferences, even citing Feeney, supra, but it explained those cases away by asserting that "even in the case of veterans' preferences, the courts will not allow an absolute preference. . . . In determining the validity of the preference,there must be some reasonable relation between the basis of the preference and the objective to be obtained." (Lucchesi,supra,at p.32,fn.6.,citations omitted.) However,as noted,the Supreme Court in Feeney described the preference as "absolute" but upheld it anyway, undermining Lucchesi s statement that such preferences will not be allowed. 15 Moreover,the Lucchesi court's assertion that for a preference to be valid"there must be some reasonable relation between the basis of the preference and the objective to be obtained" only supports the court's conclusion that giving preference to city employees violates equal protection if it is assumed that the "objective to be obtained" by a hiring preference can only be the employment of the most qualified candidate. The cases considering veterans' preferences make clear that this is not the case. The court in a case involving a New York veterans' preference stated that "a preference for veterans is'a token of gratitude conferred by New York upon its sons who enter their country's service in time of war, and perhaps an encouragement to return to the service of the State thereafter.' . . . Since the veterans' preference provided for in Section 85(7)serves the same function,and the classification of veterans and non-veterans is obviously substantially related to the objective of the statute, appellants could not have sustained a claim of violation of equal protection." (Koch v. Yunich (1976) 533 F.2d 80, 85, fn. 7.) Obviously,an individual's status as a veteran has no necessary connection to his or her ability to do a particular civil service job. The veterans' preference cases therefore demonstrate that such a close connection between the status of the individual enjoying the preference and the duties of the job is not required if there is another valid governmental objective, even one that is unrelated to employment qualifications. In the veterans' preference cases, the objective is the rewarding of service in the military. It is not qualitatively different to seek to reward current employees for their past service to the City. Trying to ensure the continued employment of employees displaced 16 when it is necessary to outsource a service previously provided in-house promotes employee loyalty and encourages employees to strive to improve their knowledge and expertise in the expectation that their employment will be of sufficient duration to make the investment worthwhile, even if their jobs are outsourced. Discrimination based on past service is, in fact, inherent in any use of a "promotional" instead of"open' hiring process. It can always be argued that even if it is legitimate to assume current employees are likely to be qualified for a promotional position, other even more qualified applicants might be recruited in an "open' hiring process. Yet promotional hiring provisions in city charters have consistently been deemed to be mandatory where qualified current employees apply for a position. (See,e.g.,Allen v. McKinley(1941)18 Cal.2d 697,706;Rhodehamel v. Civil Service Board of City of Oakland(1941) 18 Cal.2d 709, 712.) In Allen, the Supreme Court explained that "promotions are an essential of a sound civil service system. . . . Efficiency is secured by the knowledge on the part of the employee that promotion to higher positions when vacancies occur will be the reward of faithful and honest service." (Id.,at p. 705.) The same could be said of a rehiring provision. More recently, in Santa Monica Mun. Employees Assn. v. City of Santa Monica (1987) 191 Ca1.App.3d 1538 the Court of Appeal rejected the city's argument,based on Lucchesi, that a charter provision requiring promotional recruitment would be unlawful if construed to be mandatory. The city had argued that mandatory application of the provision would permit "status as a current employee to be the sole basis for preference in filling employment vacancies, thereby unlawfully discriminating against non-employees for 17 public employment vacancies." The court cited Allen and Rhodehamel in rejecting the argument. (Id., at p. 1545.) However, it did not discuss the equal protection aspect of Lucchesi. Promotional hiring is upheld even when its practical effect is to perpetuate impermissible past discrimination,absent a finding that the preference provision itself was intended to discriminate. In Allen v. Prince George's County, Md. (4th Cir. 1984) 737 F.2d 1299,the county's hiring procedures required that all openings above entry level for which at least six county employees were qualified be filled by a promotion open only to internal applicants. The procedures were challenged under Title VII of the Civil Rights Act of 1964, Title 42 U.S.C. sections 2000e et seq., on the ground that because the county had racially discriminated in the past, giving preference to internal applicants had an impermissible discriminatory impact. The court found the procedures to be valid under the express exception in Title VII for a"bona fide seniority or merit system." (42 U.S.C.§2000e-2(h).) It stated,"we believe that common sense dictates that the county's system be called a seniority system. It effectively grants'seniority' to all current employees,regardless of race or sex." (Id.,at p. 1302.) The court cited California Brewers Assn v. Bryant (1980) 444 U.S. 598, in which the Supreme Court held that a multi-employer collective-bargaining agreement that gave permanent employees the right to"bump" any temporary employee at any facility subject to the agreement did not violate Title VII. In that case,the Supreme Court noted that"the principal feature of any and every 'seniority system is that preferential treatment is dispensed on the basis of some measure of time served in employment." (Id., at p. 606.) 18 3 Notably,California employment discrimination law also provides that"rehiring on the basis of seniority and prior service with the employer" is not an unlawful employment practice. (Gov. Code, § 12940(a)(5)(A).) Under the authorities cited above, and notwithstanding Lucchesi, it would be difficult to argue persuasively that even"absolute"preferences for current employees with no requirement of relevant experience violate any established"public policy." In the case of the rehiring provision at issue here, a finding of violation is even less likely, given the likelihood that employees who benefit from the preference will, in fact, have relevant experience. It is therefore highly improbable that a court would invalidate the rehiring provision as violative of public policy. IV. Street Sweeping Employees It is necessary to discuss street sweeping employees separately because of the potential impact of the recent decision in Costa Mesa City Employees'Assn. v. City of Costa Mesa (2012) 209 Cal.App.4th 298, 146 Cal.Rptr.3d 677. The issue raised by that decision concerns not the validity of a rehire provision, but the validity of outsourcing street sweeping services at all. In the Costa Mesa case, the court affirmed a preliminary injunction preventing the city from outsourcing"a variety of city services, including street sweeping . . . ." (Id.,146 Cal.Rptr.3d p. 680.) The court relied on two sections of the Government Code. First, section 37103 provides that a city"may contract with any specially trained and experienced person, firm, or corporation for special services and advice in financial, economic, accounting,engineering,legal,or administrative matters." (Italics added.)Second,section 19 53060 provides, "The legislative body of any public or municipal corporation or district may contract with and employ any persons for the furnishing to the corporation or district special services and advice in financial, economic, accounting, engineering, legal, or administrative matters if such persons are specially trained and experienced and competent to perform the special services required." (Italics added.) The court held that,"By implication,and as interpreted over the years,the statutes generally prohibit a city from contracting with a private entity for nonspecial services." (Id., at p. 691.) It noted, "statutory outsourcing authority exists for only two of the many services the City seeks to contract out. . . . There is no indication the Legislature intended to allow the City to outsource any of the other services at issue in this case. Nor is there any evidence the City's workforce is incapable of providing any of those services." (Id.,at p. 689.) Street sweeping services were not among those for which the court found outsourcing authority. The Costa Mesa court relied in part on the fact that the city was a general law city. (Ibid.) San Bernardino is, of course, a charter city. But section 1 of the San Bernardino Charter provides, "The City of San Bernardino may make and enforce all laws and regulations in respect to municipal affairs, subject only to the restrictions and limitations provided in this Charter,and in respect to other matters it shall be subject to general laws." In contrast to solid waste disposal services, we have found no Charter or SBMC provision authorizing the City to contract with a private entity for street sweeping services. Therefore, presumably general law would govern the outsourcing of street sweeping services. If the Costa Mesa decision is correct-and it should be understood that the court 20 only determined there was the necessary probability that the outsourcing was unlawful to support a preliminary injunction, and that the time for seeking California Supreme Court review of the decision has not as of this date expired -then any outsourcing of the work performed by street sweeping employees may be subject to legal challenge under that decision. However,assuming the outsourcing itself is valid,the hiring of displaced street sweeping employees should be valid based on the analysis set forth above with respect to the hiring of refuse employees. Respectfully submitted, JAMES F. PENMAN,City Attorney By: 4:2�" Donn Dimichele Deputy City Attorney 21 Entered Into Rec. at MCC/CDC Mfg: is is 2 by: Agenda Hem tVo: by: C4 CIerVCDC Secretary C I TY O F City of San Bernardino SAN BERNARDINO Request for Proposals for Residential & Commercial Solid Waste, Recyclable Materials, Organic Materials and Street Sweeping Services October 30, 2012 TABLE OF CONTENTS Section1—RFP Objective ......................................................................................................4 Overview of the Request for Proposals...................................................................................4 Organizationof RFP................................................................................................................5 City's Goals and Objectives.....................................................................................................5 RightsReserved by the City.....................................................................................................6 LocalPreference....................................................................................................................6 GeneralRFP Agreements........................................................................................................7 Processand Schedule.............................................................................................................7 Section 2—Description of Current Services and Conditions....................................................9 Description of Current Services...............................................................................................9 Current Billing Process..........................................................................................................10 CurrentRates.......................................................................................................................10 CurrentTonnage information................................................................................................12 Section 3—Proposal Evaluation Criteria............................................................................... 14 Section4—Scope of Requested Servcies.............................................................................. 15 Scope of Service...................................................................................................................is CollectionServices.........................................................................................................................15 StreetSweeping Services...............................................................................................................15 BulkyItem Services........................................................................................................................15 AdditionalServices.........................................................................................................................15 CityServices...................................................................................................................................16 PublicEducation&Outreach.........................................................................................................16 Billing..............................................................................................................................................16 CustomerService...........................................................................................................................16 Recyclable Materials Processing....................................................................................................16 OrganicMaterials Processing.........................................................................................................16 LandfillDisposal Services...............................................................................................................16 Offerof Employment.....................................................................................................................17 City-Owned Equipment........................................................................................................17 AlternativeFuel Vehicles......................................................................................................18 City Fees18 Signing Fee(Alternative Proposal Only).........................................................................................18 Franchise Fees(Alternative Proposal Only)...................................................................................18 Recyclable Materials Payment(Alternative Proposal Only)..........................................................19 Subcontractors....................................................................................................................19 Municipal Code Revisions.....................................................................................................19 City of Son Bernardino Request for Proposals for Residential&Commercial Solid Waste, October 2012 Recyclable Materials,Organic Materials and street Sweeping Services Reimbursementof Procurement Costs..................................................................................19 Section5—Proposal Requirements......................................................................................20 ProposalOutline..................................................................................................................20 Section 6—Proposal Submittal Process................................................................................30 InterestedParties.................................................................................................................30 StepOne—Written Questions.......................................................................................................30 Step Two—Pre-Proposal Meeting and Subsequent Questions......................................................30 Step Three—Proposal Submittal....................................................................................................31 Step Four—Clarification of Proposal Information..........................................................................32 Step Five—Proposal Evaluation.....................................................................................................32 Step Six—City Council Selection of Preferred Proposers...............................................................32 StepSeven—Negotiations.............................................................................................................32 ATTACHMENTS....................................................................................................................33 Attachment 1—Finanical Proposal FORMS............................................................................33 Attachment 2—Local Preference Certification Form..............................................................33 Attachment 3—Non-Collusion Affidavit................................................................................33 Attachment 4—City Owned Collection Equipment................................................................33 Attachment 5—Equipment Lease Information......................................................................33 Attachment 6—Current Rate Schedule.................................................................................33 Attachment 7—City Service Locations..................................................................................33 Attachment 8—Business Plan for IWMD May 2008...............................................................33 TABLE OF TABLES Table1: Proposal Schedule...........................................................................................................................8 Table 2:Current Service Operational Summary...........................................................................................9 Table3—Residential Rates.........................................................................................................................10 Table 4:Current Rates—Front-Load Bin Refuse Service............................................................................10 Table 5:Current Rates—Front-Load Compactor Refuse Service................................................................10 Table 6:Current Rates—Front-Load Commingled Packaging&Paper Recycling Service..........................11 Table 7:Current Rates—Front-Load Green Waste&Organics Service......................................................11 Table 8:Current Rates—Open-Top or Compactor Roll-Off Refuse Service'..............................................11 Table 9:Current Rates—Roll-Off Open-Recycling Service..........................................................................11 Table 10:Current Rates—Compactor Roll-Off Recycling Service...............................................................12 Table 11:Current Rates—Other Services...................................................................................................12 Table 12:Annual Tonnage by Sector*........................................................................................................12 Table 13: Proposal Evaluation Criteria........................................................................................................14 Table 14:Current City Employees by Position............................................................................................17 Table 15: Equipment to be Purchased from City........................................................................................18 City of San Bernardino Request for Proposals for Residential&Commercial Solid Waste, October 2011 Recyclable Materials,Organic Materials and Street Sweeping Services it City of San Bernardino Request for Proposals for Residential & Commercial Solid Waste, Recyclable Materials, Organic Materials & Street Sweeping Services The City of San Bernardino (City) is requesting proposals for the collection, processing, and disposal of solid waste,recyclable material,and organic materials. Copies of this Request for Proposal (RFP) package and subsequent addenda may be obtained by emailing your request to: Sloan Vazquez,LLCat: info @sloanvazauez.com Before an award is made, proposers and their agents are strictly prohibited from contact with City staff and elected officials. If this condition is violated,the City may render the proposal non-responsive. All questions regarding the RFP should be directed to Sloan Vazquez, LLC at info@sloanvazauez.com,or via facsimile to(714)276-0625. A pre-proposal meeting and walk-through will be held at 3:00 P.M. on November 6, 2012 at the City of San Bernardino municipal service yard located at: 234 South Mt.View Avenue San Bernardino,CA 92408. The City will accept proposals received from proposers that do not attend the pre-proposal meeting. It is highly recommended, however, that interested parties attend the pre-proposal meeting. The information provided, including questions asked and answered during the pre-proposal presentation and walk-through,will not be separately provided. All proposals must be received prior to 3:00 p.m. on December 12, 2012. Proposals received will be opened and recorded at that time. Postmarks will not be accepted as proof of receipt. Proposers shall mail or hand deliver proposal packages to the Office of the City Clerk at the following address: City of San Bernardino—City Hall Office of the City Clerk 300 North"D"Street,Zan Floor San Bernardino,CA 92418 A non-refundable proposal fee in the amount of ten thousand dollars($10,000) must accompany all proposals.The proposal fee must be in the form of a cashiers or certified check payable and acceptable to the City of San Bernardino. City of San Bernardino Request for proposals for Residential&Commercial Solid Waste, October 2012 Reryclable Materials,Organic Materials and Street Sweeping Services 3 SECTION 1 - RFP OBJECTIVE These are extraordinary times for the City of San Bernardino.The City,experiencing the severe economic impact of the housing/mortgage crisis and the recession, has found it necessary to file for bankruptcy.As such,the City has taken a serious, pragmatic approach to reorganization by examining each City department, budgets, services provided,and the prospects for outsourcing some City services. One of the City's most valuable assets is its Integrated Waste Management Division (IWMD).As such, this Request for Proposals has been prepared with the intent to solicit proposals that will generate significant short,and long-term financial benefit to the City, play a key role in the City's timely emergence from bankruptcy, and lay a solid financial footing upon which the City can build for the future. OVERVIEW OF THE REQUEST FOR PROPOSALS The City of San Bernardino(City)currently provides solid waste, recyclable materials,and organic materials collection services to all of its residents and businesses.The City is considering franchising the residential and commercial collection operations to one or more companies.Therefore, it is soliciting proposals from qualified companies interested in providing the solid waste, recyclable material, organic materials collection services, and street sweeping services as described in Section 4 of this Request for Proposals(RFP). This RFP covers residential and commercial solid waste, recyclable materials, and organic materials collection, processing and disposal services,and street sweeping services. In addition,the RFP covers other services including billing, public education and outreach, and customer service. This RFP provides the opportunity for proposers to offer two(2)separate proposals as follow; Reauired Proposal: Under the Required Proposal, the initial, primary term of the contract will be for seven (7)years.Services under the agreement will commence on or about February 4, 2013 and the initial term of the agreement will expire on December 31,2019.The Agreement may be extended at the sole discretion of the City in two (2) increments of five (5)years for a maximum term of approximately 16 years and 11 months(including both the initial and extended terms). The City seeks a single,annual lump-sum price for providing all of the services currently provided by the City's Integrated Waste Management Division. In addition,the City seeks rental income for the use of the City's collection and street sweeping equipment including vehicles,carts, and containers. In the Required Proposal,the City seeks only the proposer's price for providing the services currently provided by the IWMD. Do not propose changes or enhancements. Alternative Proposal(Optional): Under the Alternative Proposal, the term of the contract will be for twenty(20)years with an automatic annual renewal.Services under this Alternative Proposal will commence on February 4, 2013 and will terminate on its anniversary date,twenty(20)years after notice is given by the City to terminate the annual renewal clause of the contract.This Alternative Proposal is optional.With an understanding of the City's current fiscal condition and objectives, proposers may City of San Bernardino Request for Proposals for Residential&Commercial Solid Waste, October 2017 Recyclable Materials,Organic Materials and Street Sweeping Services 4 offer an alternative proposal with all service changes and enhancements that the proposer deems appropriate. Rate Adjustment Methodology: Under the new agreement,the service component will be adjusted at 80%of the Consumer Price Index(CPI).The landfill component will be adjusted according to the actual price change at the San Bernardino County Landifll System. Upon timely application by the contractor, the adjustment will occur automatically on January 1, beginning 2014.The contract rates for processing all materials will be established during contract negotiation and will be adjusted based on 80%of CPI. ORGANIZATION OF RFP This RFP is organized into the following sections: Section 1 summarizes the City's goals and objectives, describes the City's rights concerning the procurement process,and presents the procurement schedule. Section 2 provides a description of the City service areas and a summary of the current services provided by the City. Section 3 describes the type of criteria that may be used to evaluate proposals. Section 4 presents the scope of requested collection,processing,disposal,and street sweeping services. Section 5 outlines the proposal submittal requirements. Section 6 describes the proposal submittal process. The attachments to this RFP include proposal forms, and additional background information. CITY'S GOALS AND OBJECTIVES The City is interested in receiving proposals from companies that have demonstrated experience initiating and providing solid waste, recyclable materials,and organic materials collection,processing, and disposal services, and street sweeping services comparable to those described in this RFP, under a franchise agreement with a community comparable to the service area described in Section 5 of this RFP.The City seeks contractors who place a high priority on customer service and the diversion of waste from landfill disposal,and have demonstrated significant diversion innovation and results through their past and current diversion program development, implementation, public education, and on-going operations. The City's goals for future collection services are as follows: • Maximize the quality of services provided to customers; • Fulfill its obligations to achieve the solid waste recycling and landfill diversion requirements of state law; • Encourage superior services for all San Bernardino residences and businesses; City of San Bernardino Request for Proposals for Residential&Commercial Solid Waste, October 2012 Recyclable Materials,Organic Materials and Street Sweeping Services 5 • Minimize street impact from collection vehicles;and, • To improve economic and operational efficiencies of all programs and services. RIGHTS RESERVED BY THE CITY The City reserves the right, in its sole discretion,to pursue any or all of the following actions concerning this RFP: • Select the proposal(s)that might not offer the lowest cost,but in the judgment of the City,are nevertheless deemed to offer the best value for the public and City; • Solicit subsequent requests for best and final offers; • Negotiate for modification of any proposal,with mutual consent of proposer; • Award the agreement to one or more proposers; • Award the agreement to a proposer(s)without further discussion or negotiation; • Permit the timely correction of errors and waive any informality or minor irregularity from the RFP; • Issue addenda to the RFP; • Request additional information and/or clarification from the proposers; • Extend the deadline for submitting proposals; • Withdraw this RFP; • Reject any or all proposals; • Reject proposals that do not fully comply with the requirements detailed in this RFP, its attachments,addenda,or clarifications; • Reject incomplete proposals;proposals containing errors,inconsistencies,false,inaccurate or misleading information;proposals not submitted with the proper quantity of copies;proposals not submitted with proper proposal fee;proposals submitted after the deadline;or proposals with other process or content errors or deficiencies; • Re-advertise for proposals or issue subsequent requests for proposals for the same,similar,or related services; • Amend the City of San Bernardino Municipal Code;and, • Take any other action it deems in the best interest of the City,its residents,and businesses. LOCAL PREFERENCE Under Executive Order 2003-1 Local Business Preference for Contractual Services,the City of San Bernardino provides for a local preference when evaluating proposals. The portion of the Executive Order pertinent to this RFP directs all Departments Heads to grant a 5%local business preference in Requests for Proposals for contractual services with a value in excess of$25,000 which require approval by the Mayor and Common Council or the Community Development Commission, unless contrary to federal,state,or local law(such as contracts for the construction of public works projects)or unless contrary to the requirements mandated by the funding source for such contractual City of San Bernardino Request for Proposals for Residential&commercial solid Waste, October 2012 Recyclable Materials,Organk Materials and Street Sweeping Services 6 services(such as federal government,which in most if not all cases, requires award to the lowest responsible bidder). For the purpose of granting a local business preference, "Local Business' shall mean a business possessing a fixed office or distribution point with at least one owner or employee within the City of San Bernardino, and possessing all valid and current permits and licenses required to transact such business, including, but not limited to a City Business Registration Certificate. Proposers shall submit the Certification for Local Preference form,Attachment 2, with their proposal if they seek the benefit of local preference.The preference is waived if the Certification is not included in the proposal. GENERAL RFP AGREEMENTS This RFP does not constitute an agreement of any kind between the City and any proposer or company. Any award of a contract shall be subject to the approval of the City Council. This RFP does not obligate the City to accept any proposal, negotiate with any proposer, award an agreement,or proceed with the development of any project or service described in response to this RFP. The City has no obligation to compensate any proposer for its expense of preparing its proposal and participating in this procurement process. Submission of a proposal shall constitute acknowledgment,acceptance of and commitment to provide the proposed services in accordance with all the requirements described in this RFP, its attachments, addenda, or clarifications, unless an exception to specific RFP requirements are specifically expressed in writing in the proposal.The proposals are to be firm for a period of 180 days from the date the proposal is submitted. Proposals may not be altered after submittal,except in response to City's request for clarification. The City shall have the right (but not the obligation) to perform an investigation and review of each proposer's ability to perform the work required. Each proposer must agree to cooperate with such investigation. Such cooperation by proposers shall include, but not be limited to, the verification of the proposer's capability and experience in the provision of services and any other component of work, including the proposer's described facilities for the receipt, handling, processing,transformation, transfer,and disposal of solid wastes that may be required under this procurement. The City will make an effort to ensure that addenda issued relating to this RFP are distributed to all interested parties. It shall, however,be the proposer's responsibility to inquire as to whether addenda to the RFP have been issued. Upon issuance by the City or its consultant, all addenda are part of the proposal. All proposers must acknowledge receipt of all addenda in the Cover Letter of their proposals. PROCESS AND SCHEDULE The key activities and completion dates for the procurement process are provided in Table 1. The proposal submittal process is described in detail in Section 6. City of San Bernardino Request for Proposals for Residential&commercial Solid Waste, October 2012 Reryclable Materials,Organic Materials and Street Sweeping Services 7 All questions regarding the RFP should be directed to Sloan Vazquez, LLC at info @sloanvazouez.com or faxed to the company at(714)276-0672. Table 1:Proposal Schedule ACTIVITY COMPLETION DATE Request for Proposals Available for Distribution October 30,2012 Pre-Proposal Meeting November 6,2012 Deadline to Submit Written Questions November 13, 2012 City to Issue Final RFP Addenda and Responses to November 27, Questions 2012 Proposers Submit Proposals December 4, 2012 Proposal Evaluations Complete(Including Interviews) December 18, 2012 City Completes Negotiations with Contractor January 11, 2013 City Approves Franchise Agreement January 21, 2013 Contractor Commences Service February 4, 2013 The City reserves the right to adjust any part of this schedule at any time during the process.The City is interested in commencing services on February 4, 2013.The City reserves the right to adjust the implementation schedule if it is determined that a phased or delayed transition would be advantageous to the City or customers. City of San Bernardino Request Jar Proposals for Residential&CommercialSORd Waste, October2012 Recyclable Materials,Organic Materials and Street Sweeping Services 8 SECTION 2 - DESCRIPTION OF CURRENT SERVICES AND CONDITIONS The information presented in this section was obtained from the City's Public Works Department and is presented for information purposes only. By submitting a proposal,the proposer agrees to indemnify and hold the City harmless from any claims of damages incurred by proposer for its reliance on this data. Each proposer should take whatever steps it believes are necessary to reasonably determine the actual service requirements of the City and understand service conditions in the City when preparing a proposal. DESCRIPTION OF CURRENT SERVICES The City currently provides collection service to all residential and most of the commercial bin-serviced, and roll-off customers in the city. Some commercial customers are currently served by private companies and are exempt from the requirement for municipal(City rendered)service for a term of years.'As currently authorized,all solid waste generators in the city will ultimately be served by the municipal,or successor,operation.An exception to the City's exclusive service provision is offered for residents or commercial businesses that require a service that is not offered by the city. In those cases, approved third-party vendors may provide the service.All residents have solid waste, recycling,and green waste collection and are provided 96-gallon carts as the basic level of service for all three material streams. Commercial customers are served via the use of 2,3,4,and 6 cubic yard bins. Roll-off services are provided through the use of 10,20, 30 and 40 cubic yard roll-off boxes. Recycling collection service is provided weekly in 96-gallon carts to residential customers on the same day as their garbage collection service. Green waste collection includes grass, leaves, weeds,sawdust, palm fronds, untreated wood,fruit and vegetables.Christmas trees are collected for recycling after the holidays.The City also provides bulky item collection for residents. Table 2:Current Service Operational Summary SECTOR ACCOUNTS REVENUE Residential 43,000 $11,532,304 Commercial 3,000 $12,509,717 Recycling Revenue $164,828 Misc. $413,930 TOTAL $24,620,779 All solid waste generators in the city are required to subscribe to solid waste collection services. All RFP respondents should refer to the City's Municipal Code for specific solid waste rules and regulations. In performance of duties under a new contract,the contractor shall comply with all applicable laws, 'The"grandfather"term for accounts now served by Burrtec Industries and Cal Disposal expires in May 2014.At that time,all solid waste generators in the City will be served by the City or its contractor.Currently Burrtec Industries collects 650-700 tons per month of commercial waste and generates revenues of approximately $100,000 per month.Cal Disposal data is not available but will be provided if it becomes available. City of San Bernardino Request for Proposals for Residential&Commercial Solid Waste, October 2012 Recyclable Materials,Organk Materials and Street Sweeping Services 9 regulations,ordinances,and codes of the federal,state,and local governments, including without limitation,the City of San Bernardino Municipal Code. CURRENT BILLING PROCESS The City currently bills all of the residential and commercial customers served by the City. CURRENT RATES The current rates for City-provided collection services are shown in Tables 3 through 11 below. The most recent rate adjustments took effect in 2008. Table 3-Residential Rates Service Monthly Rate 3-Cart Service $22.84 Additional Black Cart(Refuse) $12.97 Additional Green Cart(Yard Waste) $11.35 Additional Blue Cart(Recycling) No Cost Late Set Out $28.75 Bulky Item p/u charge per 15 Minutes $36.23 Cart Replacement $74.75 Table 4:Current Rates-Front-Load Bin Refuse Service BIN SIZE NUMBER OF SERVICE DAYS PER WEEK EXTRA CUBIC YARD 1 2 3 4 5 6 PICK-UP 1-2 $112.10 $205.32 $304.44 $401.20 $495.60 $661.98 $25.28 3 $119.18 $225.56 $335.12 $440.14 $547.52 $840.16 $27.50 4 $130.98 $247.80 $364.62 $480.26 $595.90 $1,036.04 $30.11 6 $189.98 $362.26 $535.72 $713.90 $876.74 $1,041.94 $35.68 Commercial Carts $108.68 Table 5:Current Rates-Front-Load Compactor Refuse Service BIN SIZE NUMBER OF SERVICE DAYS PER WEEK EXTRA CUBIC YARD 1 2 3 4 S 6 PICK-UP 2 $130.98 $246.44 $361.08 $476.72 $591.18 $786.35 $27.50 3-4 $154.58 $287.92 $423.62 $553.42 $692.66 $952.12 $30.11 City of San Bernardino Request for Proposals for Residential a Commercial Solid Waste, October 1012 Recyclable Materials,Organic Materials and Street Sweeping Services 10 Table 6:Current Rates-Front-Load Commingled Packaging&Paper Recycling Service BIN SIZE NUMBER OF SERVICE DAYS PER WEEK EXTRA CUBIC YARD 1 2 1 3 1 4 F 5 6 PICK-UP 1-6 $41.50 $83.00 1 $124.50 1 $166.50 1 $208.00 N/A N/A Table 7:Current Rates-Front-Load Green Waste&Organics Service BIN SIZE NUMBER OF SERVICE DAYS PER WEEK EXTRA CUBIC YARD 1 2 3 4 5 6 PICK-UP 1-2 $107.38 $198.24 $291.46 $384.68 $476.72 N/A $25.28 3 $114.46 $215.94 $316.24 $416.54 $515.66 N/A $27.50 4 $125.08 $232.46 $341.02 $450.76 $558.14 N/A $30.11 6 $143.96 $267.86 $394.12 $505.04 $641.92 N/A $35.68 Table 8:Current Rates-Open-Top or Compactor Roll-Off Refuse Service' CUBIC RATE WEIGHT YARD LIMIT* 10 $335.12 per pull+$44.65 per ton 2 TONS 20 $335.12 per pull+$44.65 per ton 5 TONS 30 $335.12 per pull+$44.65 per ton 7TONS 40 $335.12 per pull+$44.65 per ton 8 TONS Table 9:Current Rates-Roll-Off Open-Recycling Service CUBIC RATE WEIGHT YARD LIMIT* 10 $335.12 per pull+Market rate per ton 2 TONS 20 $335.12 per pull+Market rate per ton 5 TONS 30 $335.12 per pull+Market rate per ton 7 TONS 40 $335.12 per pull+Market rate per ton 8 TONS City of San Bernardino Request for Proposals for Residential a Commercial Solid waste, October 2012 Recyclable Materials,organic Materials and Street Sweeping Senikes 11 Table 10:Current Rates—Compactor Roll-Off Recycling Service CUBIC RATE WEIGHT YARD LIMIT* 10 $142.00 per Pull 2 TONS 20 $142.00 per Pull 5 TONS 30 $142.00 per Pull 7 TONS 40 $142.00 per Pull 8 TONS `Overweight loads are subject to a$36.54 per ton plus$12 per ton over the weight limit in addition to all other charges. +Includesgreen waste,uncontaminated wood waste,or roll-off compactor for compostables Service. Table 11:Current Rates—Other Services Description Rate Manual Collection for Small Business Materials must be bagged, boxed or $108.68 per month for 1 x per week. bundled with a 60-lbs maximum weight. $108.68 per additional day per week. Temporary Front-Load Bin Refuse Service Temporary 3 CY Bins for up to 7 calendar $69.00 days. $27.50 per additional collection Lock $17.70 Bin Enclosure Cleaning $37.17 Bin Roll Out Service $67.26 Bulky Item Pick Up $36.23 Bin Steam Cleaning $133.34 CURRENT TONNAGE INFORMATION The City currently takes all refuse to the County of San Bernardino landfill in Colton.Approximately 60% of the residential recyclables are delivered to Jack's Disposal in San Bernardino for processing.40%of the residential recyclables are delivered to Republic Services in Colton for processing. All of the City's green waste is delivered to Republic Services in Colton. Table 12:Annual Tonnage by Sector* GREEN SECTOR REFUSE WASTE RECYCLING TOTAL Residential 50,000 30,000 15,000 95,000 Commercial 65,000 100 1,000 66,100 Industrial 35,000 500 5,000 40,500 TOTAL TONS 150,000 30,600 21,000 201,600 This is the best available information at the time of RFP publication.It has not been validated. City of San Bernardino Request for Proposals for Residential&Commercial Solid Waste, October 2012 Recyclable Materials,Organic Materials and Street sweeping services 12 The County Waste Disposal Agreement(WDA)expires December 31,2012 and service under a new contract is expected to commence February 4,2013 at which time the contractor will be responsible for the guarantee of disposal capacity throughout the term of the contract.The City requests proposals for landfill services commencing February 4, 2013.The City will make an interim disposal arrangement for the period between the expiration of the WDA and the commencement of the new contract. City of Son Bernardino Request for Proposalsfor Residential&Commercial Solid Waste, October 2012 Recyclable Materials,Organic Materials and street Sweeping Services 13 SECTION 3 - PROPOSAL EVALUATION CRITERIA The City will review and evaluate all proposals deemed responsive.To receive proper consideration,the proposal must meet the requirements of this RFP. The evaluation process will provide credit only for those capabilities and advantages that are clearly stated in the written proposal(s). Advantages that are not stated will not be considered in the evaluation process. Proposers whose proposals include a significant failure to comply with the RFP may be dropped from the evaluation process. The City's evaluation process may involve one or more representative from the City Council and Staff representatives from City Departments.The City may also include representative(s)from outside the City which may include attorneys,consultants,and/or employees from other Agencies. It is the intent of the City to objectively evaluate the proposals received.The assignment of a score to a particular qualitative element is necessarily subjective and may result in a range of scores from different evaluators. The City currently anticipates using the following weighted evaluation criteria in that evaluation process. The City Council may, at its sole discretion, adjust the weighting of each of the criteria at any time or consider other factors. Table 13:Proposal Evaluation Criteria CRITERIA MAXIMUM SCORE %ofTOAL Responsiveness to RFP Pass/Fail N/A Litigation &Regulatory History Pass/Fail N/A Financial Ability Pass/Fail N/A Assumption of City Employees 150 15% Proposer Qualifications&Experience 100 10% Local Employment 50 5% Local Purchasing 50 5% Local Preference—Executive Order 50 5% TOTAL QUALITATIVE SCORE 400 40% Financial Value 600 60% TOTAL MAXIMUM SCORE 1000 100% Any award shall be based on the proposals judged as providing the best value in meeting the interest of the City and the objectives of the project. The City reserves the right to make the selection of proposer(s) based on any or all factors of value, whether quantitatively identifiable or not. City of Son Bernardino Request for proposals for Residential&Commercial Solid Waste, October 2012 Rerycloble Materials,Organic Materials and Street Sweeping Services 14 SECTION 4- SCOPE OF REQUESTED SERVCIES The City is requesting proposals to provide residents and businesses with solid waste, recyclable materials,organic materials collection,and street sweeping services commencing on or about February 4, 2013, under two(2)separate scenarios,as described in Section 1—Overview of the request for proposals. SCOPE OF SERVICE The franchised collection contractor shall have the exclusive right to collect solid waste, recyclable materials,and organic materials from all residential and commercial accounts,except for accounts currently served by Jack's Disposal and Cal Disposal under Grandfathered agreement which expires in May 2014.The franchised collection contractor shall deposit all solid wastes at the facilities described in its proposal. However,the City of San Bernardino shall maintain control of all waste streams(refuse, recycling, and organics)and may choose during the term of the Agreement to direct the materials to alternative sites.The costs or savings generated by directing the materials to different depositories will be negotiated before implementation. COLLECTION SERVICES The franchised collection contractor(s)shall collect solid waste, recyclable materials, and organic materials from residential and commercial customers once per week,consistent with the requirements of the City's Municipal Code. -.STREET SWEEPING SERVICES The City currently provides street sweeping services to 1,152 curb miles. Street sweeping will follow trash collection day. If proposed and approved by the City,contractor will be responsible for all costs associated with changing street sweeping service days, including street signage. BULKY ITEM SERVICES Each proposer must include,in its bid price,the provision of residential bulky item collection services, as follows; Each customer will be allowed to schedule up to four(4)on-call bulky item collections per calendar year. At a minimum,such events shall include: an unlimited volume of general solid waste, recyclable materials, or organic materials; bulky items that are less than 200 pounds and seven feet in length including furniture or appliances;solid waste, recyclable materials,and organic materials that are properly bagged and contained;and,other salvageable materials such as clothing,toys,furniture, and building supplies.The contractor shall provide the bulky item collection within seven (5) business days of the customer's request. ADDITIONAL SERVICES Under the Required Proposal,the franchised collection contractor will be expected to continue providing all currently provided collection services. Proposers may propose service and financial enhancements to currently provided services under their Alternative Proposal. City of San Bernardino Request for Proposals for Residential&Commercial Solid waste, October 2012 Recyclable Materials,Organic Materials and Street sweeping services 1s CITY SERVICES City facilities will be provided all collection services at"no charge." Service will be scheduled at a time mutually agreed upon by the contractor and the City. The cost of these services will be included in the overall rate structure to provide solid waste services. A list of locations for which City Service are to be provided is included as Attachment 7. W t_!-.a-- A ao—.4° 2E et✓c r;"S AoP I r7a if 6 t o r1 .✓IC $ ? PUBLIC EDUCATION&OUTREACH The franchised collection contractor shall be responsible for developing public education and outreach program in support of the City's solid waste, recycling, and waste diversion programs.Such education and outreach program shall, at a minimum, include the types and amounts of education performed currently by the City's solid waste division. BILLING _ Under the new contract,the City will maintain responsibility for residential billing.The contractor will y assume responsibility for commercial billing. CUSTOMER SERVICE The franchised collection contractor shall be responsible for performing all customer service activities \ ` consistent with the requirements of rendering the services described in the Scope of Work.Such s" requirements include maintaining appropriate telephone and online systems to inform and interact with customers,the location and hours of availability of the customer service office, and requirements for documenting and resolving service complaints. RECYCLABLE MATERIALS PROCESSING The franchised collection contractor will be expected to provide recyclable materials processing and marketing services as part of the agreement. The franchised collection contractor may use its processing site or a subcontractor's processing site to process and market recyclable materials. Under the Required Proposal, all revenue from the sale of recyclables shall be retained by the contractor. Under the Alternative Proposal,the selected contractor will be expected to remit a payment to the City based upon a proposal percentage of the gross receipts from the sale of all recovered recyclables (Attachment 1). ORGANIC MATERIALS PROCESSING The franchised collection contractor will be expected to provide organic materials processing and marketing services as part of the agreement.At a minimum,organic materials collected under this agreement shall include those materials currently accepted in the City's green waste program. ]LANDFILL DISPOSAL SERVICES Proposers are asked to submit pricing for the disposal component of service commencing on February 4, 2013 using the form provided in Attachment 1.The contractor must guarantee disposal capacity for the City of San Bernardino throughout the full term of the Agreement. City of San Bernardino Request for Proposals for Residential&Commercial Solid Waste, October 2012 Recyclable Materials,Organic Materials and Street Sweeping Services 16 OFFER OF EMPLOYMENT The contractor shall offer employment to displaced employees of the City's Integrated Waste Management Division (IWMD).That offer of employment may be limited to the employees who successfully pass contractor's pre-employment DMV background check and drug screening. On the commencement date of the agreement,contractor shall employ the City employees that accept the contractor's employment offer and shall guarantee employment of such persons for a period of time that is proposed by the contractor and approved by the City, unless the contractor terminates an employee for cause.Table 14 lists the current number of employees in each position within the City's IWMD. Table 14:Current City Employees by Position BASE TOTAL ACTIVITY QUANTITY SALARY INCLUDING BENEFITS Commercial IW Operations Supervisor 2 128,400 179,356 Senior IW Operator 18 815,400 1,139,121 IW Operator(Flex) 16 624,000 878,455 Equipment Service Worker 2 86,200 121,256 Residential IW Operations Supervisor 2 128,400 174,220 Senior IW Operator 31 1,404,300 1,946,316 IW Operator(Flex) 6 234,00 323,571 IW Field Inspector 1 55,900 76,973 Street Sweeping Lead Motor Sweeper 1 52,600 72,837 Operator Motor Sweeper Operator 4 200,000 277,910 IW Division Manager 1 95,7001 137,765 TOTAL 84 3,824,9001 5,327,779 CITY-OWNED EQUIPMENT On the commencement date of the agreement,the contractor shall,as permitted by current lease/loan agreements,either rent or purchase,and take possession of the collection vehicles, residential carts, bins and roll-off boxes owned by the City. If purchased,the contractor will be responsible for sales taxes and any other costs associated with the transfer. Detailed equipment information to be rented or purchased by the new contractor is specified in Attachments 4 and 5. City of Son Bemardino Request for Proposals for Residential&Commercial Solid Waste, October 2012 Recyclable Materials,Organic Materials and Street Sweeping Services 17 The City shall leave the carts and bins rented or purchased by the contractor at each customer's service location. Proposers shall describe how they will re-brand the equipment to eliminate references to the City and replace them with the Contractor's name,telephone number,and website. Table IS:Equipment to be Purchased from City K TYPE UNITS r 15 36 r z 11 Z 1 Street Sweeper 6 TOTAL 73 Although the contractor is required to rent, and/or purchase,and take possession of the City's equipment,the contractor is not obligated to use such collection equipment to provide the collection services after removing any City signage. If the contractor purchases the equipment,the contractor may sell the collection equipment previously owned by the City or use such equipment to provide services in other jurisdictions. Under the Re uired and Alternative Proposals,the contractor shall be required to rent the City's equipment for a seven (7)year term, or purchase it. In either case,the contractor will be responsible for maintenance and replacement of all equipment,as needed, during the term of the agreement. ALTERNATIVE FUEL VEHICLES The City expects that the selected service provider will provide services using some form of clean air vehicles in order to protect air quality.The City will consider proposals to utilize the City's existing fueling facility throughout the term of the agreement, provided that such facility is operational. CITY FEES SIGNING FEE(ALTERNATIVE PROPOSAL ONLY) Contractor may propose a signing fee to be paid to the City immediately upon execution of the franchise with the selected contractor. FRANCHISE FEES(ALTERNATIVE PROPOSAL ONLY) In consideration of the exclusive rights provided to contractor,contractor shall pay franchise fees to the City each month of actual gross revenues remitted by customers for collection services provided in the City.The proposer shall propose a franchise fee percentage to be paid on gross receipts. City Of ber2 Bernardino October 2 Request for Proposals for Residen list&commercial Solid Waste, 012 Recyclable Materials,Organic Materials and Street Sweeping Services 18 RECYCLABLE MATERIALS PAYMENT(ALTERNATIVE PROPOSAL ONLY) Contractor shall propose a recyclable materials payment to the City to be remitted based upon a proposed percentage of the gross receipts from the sale of all recyclables. SUBCONTRACTORS Contractor may enter into agreements with subcontractors to provide services to customers requested in the RFP subject to the prior written consent of the City.Agreements with the subcontractor(s) must meet the requirements of the level and type of insurance specified by the City. MUNICIPAL CODE REVISIONS The changes to the existing collection arrangements proposed by the City may require the revision of the City's Municipal Code. For example,the City's Municipal Code will be revised to allow the City the right to franchise solid waste collection services. If required,the Municipal Code will be revised before the execution date of the new agreement. REIMBURSEMENT OF PROCUREMENT COSTS The selected proposer will reimburse the City its actual procurement-related expenses(including, but not limited to,consulting fees and legal fees). The procurement-related reimbursement payment will be made by the selected proposer no later than the execution date of the agreement. The procurement- related reimbursement expense is currently estimated to be$150,000. City of Son Bernardino Request for Proposals Jor Residential&Commercial Solid Waste, October 2012 Recyclable Materials,Organic Materials and Street Sweeping Services 19 SECTION 5 - PROPOSAL REQUIREMENTS This section includes an outline for the proposal as well as a description of the specific information to be included in each section of the proposal. At a minimum,the proposer is to provide all information required in this section as part of its proposal. PROPOSAL OUTLINE The following outline shall be used by proposers when completing their proposals: i. Title Page ii. Cover Letter including company name,address, contact name, phone number,fax number, and e-mail address,signature of the representative authorized to bind the proposing company, acknowledgment of receipt of all addenda. iii. Table of Contents E.S. Executive Summary 1.0 Company Description 1.1 Business Structure 1.2 Description of Proposers Experience 1.3 Description of Proposers Service Implementation Experience 1.4 Information Regarding Litigation, Regulatory Actions,and Payment of Liquidated Damages 1.5 Financial Information 1.6 Key Personnel 1.7 Description of Current Labor Agreements 2.0 Technical Proposal—Required Proposal 2.1 Description of Solid Waste Collection Methodology 2.2 Description of Recyclable Materials Collection Methodology 2.3 Description of Organic Materials Methodology 2.4 Description of Street Sweeping Services 2.5 Implementation Plan 2.6 Billing 2.7 Customer Service Plan 2.8 Offer of Employment 2.9 Environmental Considerations 2.10 Public Education and Outreach Plan 2.11 Subcontractors 3.0 Technical Proposal—Alternative Proposal 4.0 Financial Proposal 5.0 Anti-Collusion Affidavit 6.0 Certification for Local Preference(optional) City of San Bernardino Request far Proposals Jar Residential&commercial Solid Waste, October 2032 Recyclable Materials,Organic Materials and Street Sweeping Services 20 1.0 Company Description 1.1 BUSINESS STRUCTURE • Identify the legal entity(ies)that would execute the agreement. State whether each entity is a sole proprietorship, partnership, corporation, or joint venture. Describe in detail the relationship of the proposer to the entity that will execute the agreement. If the proposer is a joint venture,describe where(if at all)the entities have collaborated before. • State that proposer is authorized to do business in California. • State the number of years the entity(ies) have been organized and doing business under this legal structure. Proposal should include all the names of proposer's(and executing entities' if different than proposer's) owners/stockholders with greater than a 10% holding and creditors owed a debt greater than 10%of the company's totalassets. • Identify other entities with common ownership and/or management. 1.2 DESCRIPTION OF PROPOSER'S EXPERIENCE Describe the proposer's experience in providing similar services from three (3) jurisdictions in California. Proposers without municipal franchise experience will not be disqualified solely on that basis,however that lack of experience will be considered in the evaluation of proposer qualifications.The services provided to the reference jurisdictions should be similar to those being offered to San Bernardino. The description shall include: • The service performed (i.e., solid waste collection, recyclable materials collection, and organic materials collection and processing); • The jurisdiction where the activities were performed and commencement date of the agreement; • The name, address, and telephone number of each jurisdiction representative responsible for administering the agreement;and, • The number of customers served, tons collected,tons diverted, and type (e.g., side loading,front loading, roll-off)and number of vehicles dispatched per day for solid waste, recyclable materials,and organic materials collection services. 1.3 DESCRIPTION OF PROPOSER'S SERVICE IMPLEMENTATION EXPERIENCE Describe how the proposer has previously handled the specific requirements for the procurement of vehicles and personnel,training of personnel,transition of billing and fee collection services, determination of routes and operating procedures, delivery of containers, October 2022 Bernardino Request Jor Proposals Jor Residential&t7 mmerclalSolid Waste, October 11112 Recyclable Materials,Organic Materials and Street Sweeping Services 21 public education, and the preparation of procedures to ensure a smooth transition from one service providerto another and one type of service to another. Also, include a minimum of three references for jurisdictions which the proposer has initiated a new service contract and/or new collection services. Describe the number of residential and commercial accounts for each reference. Summarize the proposer's implementation experience in those jurisdictions. 1.4 INFORMATION REGARDING LITIGATION, REGULATORY ACTIONS,AND PAYMENT OF LIQUIDATED DAMAGES Describe all past and pending civil, legal, regulatory,and criminal actions now pending or which have occurred in the past ten years against key personnel(as identified by the proposer in Section 1.6), proposing entity,and all subsidiaries owned by proposing entity. Listthe amount of liquidated damages the proposing entity has paid, the name of the jurisdiction to which damages where paid,and the event(s)which triggered the damages. Proposer shall also describe all extraordinary events including:criminal wrong-doing;forfeitures; payment of fines; liquidated damages, or assessments greater than $1 million; or, any indictment or conviction involving(directly or indirectly)a public agency or public official. Descriptions of such extraordinary events shall be provided regardless of whether the incident occurred in the last 10 years. The City may, in its sole discretion, reject proposals from companies with litigation that is current or has occurred in the past ten years with the City.The City may consider the circumstances and magnitude of such litigation in determining whether to accept or reject proposals from such a company. 1.5 FINANCIAL INFORMATION 1.5.1 FINANCIAL STATEMENTS Submit audited financial statements for the last three years, including balance sheet and income statement. If proposer is a partnership or joint venture, individual audited financial statements must be submitted for each general partner and the joint venture thereof. All such statements are to be prepared in accordance with Generally Accepted Accounting Principles applied on a consistent basis and shall be audited in accordance with Generally Accepted Auditing Standards by an Accountant certified in the State of California and shall include a statement by the chief financial officer of the entity described in 1.1 above that there has been no material adverse change in such condition or operations as reflected in the submitted balance sheet and income statements since the date on which they were prepared. In order to accurately determine the financial City of Son Bernardino Request for Proposals for Residential&Commercial Solid waste, October 2012 Recyclable Materials,Organic Materials and Street Sweeping Services 22 stability of the proposer,financial statements shall be provided individually or presented as a consolidated financial statement for all related parties to the entity contracting with the City. Failure to include one or more operating companies associated with common ownership may provide an incomplete understanding of the proposer's debt levels,cash flow, profitability,or other key indicators required to understand a company's financial health. Related party entities may include other companies providing indirect services under this agreement(e.g.,organic materials processor,trucking company,etc.)or may be a sister-or affiliate-company of the proposer which has common ownership. Should the City determine that financial statements are required for additional related party entities that are not included in the original proposal; the City may find that the proposer is non-responsive to this RFP and may disqualify the proposer on those grounds. If financial statements are to be treated as "Confidential," mark them as "Confidential" and provide the financial statements in a separate envelope with the proposal. Confidential financial statements will be provided to the City's consultant and will not be retained by the City.The City's Consultant will return such confidential financial statements to the proposer within 30 days of the award of a contract resulting from this RFP. 1.$.2 FINANCING PLAN Describe the plan for financing all capital requirements in a "Sources and Uses of Funds"format,which describes the sources of required capital (e.g., banks, leasing companies,cash reserves, etc.)and uses (e.g., property, trucks, equipment, containers, reserves, etc.). Attach supporting documents (e.g., letters from banks or leasing companies)that demonstrate your ability to implement the financing plan. 1.6 KEY PERSONNEL Provide resumes, including names and phone numbers of municipal references,for the key proposed management team members (e.g., customer service manager,general manager, maintenance manager,operations manager,financial manager, public education specialist,etc.) that will fill these positions. Indicate which positions should, in the opinion of the proposer, be considered "key" in providing service of this nature. At a minimum, key personnel shall include the chief executive officer(CEO),chief financial officer(CFO), president,vice-president, controller,general manager, operations manager,customer service manager, maintenance manager, and public education specialist or other personnel with similar titles. If corporate management(e.g., CEO, CFO, etc.)will not be directly involved in this operation, such information is not required. City of Son Bernardino Request for Proposals for Residential B Commercial solid Waste, October 1011 Reryclable Materials,Organic Materials and Street sweeping services 23 f 1.7 LOCAL PURCHASING Proposer shall describe their plans for purchasing goods and services required to perform services under the agreement from other businesses in the City. Examples of such local purchasing include truck supplies, maintenance services, office supplies,and other supporting services and goods. 1.8 LOCAL EMPLOYMENT Proposer shall describe the company's current and planned employment of residents of the City of San Bernardino. 2.0 Technical Proposal for Collection Services— Reauired Proposal In addition to specific information requested below, additional information is requested in the rate and cost proposal forms,which are described in Item 4.0 of this Section 5 and presented in Attachment 1. 2.1 SOLID WASTE COLLECTION Each proposer shall describe how it plans to perform the solid waste collection services requested in the RFP. If the proposed methodology or equipment can be considered non-standard describe in detail how this collection technology will work,why it was chosen for the City, and how it will benefit and work in the City specifically. 2.2 RECYCLABLE MATERIALS The City requests proposals for the collection, processing, and marketing of recyclables materials from the City's residential customers. Recyclable materials to be collected must include, at a minimum,currently collected in the City's program, but may be expanded to include other materials acceptable to the recyclable materials processing facility at any time during the term of the agreement. 2.2.1 COLLECTION If the proposed methodology or equipment can be considered non-standard, describe in detail how this collection technology will work,why it was chosen for the City, and how it will benefit and work in the City specifically. 2.2.2 PROCESSING The following information is required for recyclable materials services: City of San Bernardino Request Jim proposals f"Residential&Commercial Solid Waste, October 1011 Recyclable Materials,Organic Materials and Street Sweeping Services 24 • Name and description of transfer and processing facility(ies) where recyclable materials will be handled, name of owner and operator of the facility(ies),copy of facility(ies) permits, proof of permitted capacity, anticipated revenue per ton,tonnage commitment for the term of the agreement,and method of tracking tonnage if the facility is receiving tonnage from other jurisdictions. • If the proposer is not the owner/operator of the processing facility, provide a letter of commitment specifying volume,term,and price (including method of adjustment) of the agreement,from the processing facility owner/operator. 2.2.3 MARKETING Each proposer shall describe its recyclable materials marketing plan, including the following information: • Describe how proposer will handle fluctuations in quantity and quality of recyclable materials. • Describe how proposer will respond to severe market demand and pricing fluctuations,which should address emergency storage of recyclable materials. 2.3 ORGANIC MATERIALS The City requests proposals for the management of organic materials from the City's residential customers. Proposers are asked to describe their experience with such programs and their plans for implementing organics programs in San Bernardino. The proposal should describe the acceptable materials under the proposed program,as well as those materials which would be considered contaminants. The City reserves the right to accept, delay implementation,or reject organics proposals without effect to the rest of the proposal. 2.3.1 COLLECTION Proposers shall describe how it plans to perform the services requested in the RFP. Include at a minimum: • Plan for identifying contaminated loads prior to collection to ensure that contamination is minimized to the greatest extent feasible prior to delivery at the organic materials processing facility; • Plan for minimizing contamination of organic materials and maximizing participation in organics programs; If the proposed methodology or equipment can be considered non-standard,describe in detail how this collection technology will work,why it was chosen for the City, and how it will work in the City specifically. City of San Bernardino Request for Proposals for Residential&Commercial Solid Waste, October2011 Recyclable Materials,Orgonlc Materials and Street Sweeping Services 25 2.3.2 PROCESSING The following information is required for organic materials services: • Name and description of transfer and processing facility(ies)where organic materials will be handled, name of owner and operator of the facility(ies),copy of facility(ies) permits, proof of permitted capacity, anticipated revenue/cost per ton, and tonnage commitment for the term of the agreement. • If the proposer is not the owner/operator of the processing facility, provide a letter of commitment specifying volume,term,and price(including method of adjustment) of the agreement,from the processing facility owner/operator. • Description of the types of acceptable materials to be collected. Describe the benefits,limitations,contamination issues,and markets that will affect the program. 2.3.3 MARKETING Each proposer shall describe its organic materials marketing plan, including the following information: • Describe how company will handle fluctuations in quantity and composition of organic materials. • Describe how company will respond to severe market demand and pricing fluctuations,which should address emergency storage of organic materials. 2.4 STREET SWEEPING SERVICES Each proposer shall describe how it plans to perform the street sweeping services requested in the RFP. Specifically,information should address services. Include at a minimum: • Service methodology, including discussion of special methods for serving in narrow streets,courts,and alleys; • Anticipated route and/or service day changes. 2.5 IMPLEMENTATION PLAN Provide an i mplementation plan describing the proposer's approach to facilitating a smooth transition from City-provided collection services to contractor-provided collection services. The proposal must clearly describe the proposers ability to implement the services in accordance with the schedule shown in Section 1 of this RFP. This should include how the proposer will meet equipment, personnel, administration, customer service, billing, maintenance, and public education requirements.The proposal shall include a schedule listing key events (i.e., public City of San eemordino Request for Proposals for Residential&Commercial Solid Waste, October2011 Recyclable Materials,Organk Materials and Street Sweeping Services 26 education, employee hiring and training,etc.),duration,and expected completion date of each event. 2.6 BILLING The contractor shall be responsible for billing all commercial customers. To insure that customers in the City obtain competent, professional, and courteous customer service with regard to billing matters each proposer shall: • Describe how the proposer will work with the City to ensure the smooth and accurate transition of customer service and billing data. Such a description shall include the requirements of data provided by the City, process for auditing and verifying the accuracy of data in the Contractors system following the import of City data, and a detailed schedule identifying the timing of each responsibility of the City and Contractor. • Describe how billing data will be regularly transmitted to the City on an automated basis throughout the term of the agreement. • Provide sample of customer bills and a listing of jurisdictions where proposer currently provides billing services,including a contact name and phone number. • Describe all acceptable payment methods. • Describe contractor's approach, including frequency,for performing audits of service levels and billing to ensure that all customers are being billed properly. • Describe its procedures for dealing with customer service, with regards to customer billing demands,during the transition and throughout the term of the agreement. • Provide a description of proposer's experience with bad debt in other communities where proposer currently provides service. 2.7 CUSTOMER SERVICE PLAN To ensure that customers in the City obtain competent, professional,and courteous customer service each proposer shall: • Describe the location, in the City,where customer service operation will be housed. • Specify the number of full time equivalent Customer Service Representatives(CSR)that will serve the City. Describe how calls will be handled/reported, how many calls are expected per CSR, and describe any changes you will make to your current CSR operation to accommodate the City. • Describe procedures to satisfactorily respond to, record, and report common customer complaints. City of San Bemardina Request for Proposals for Residential&Commerclal Salid Waste, October1011 Recyclable Materials,Organic Materials and Street Sweeping Services 27 2.8 OFFER OF EMPLOYMENT The City is interested in ensuring that the wages and benefits provided to any displaced employees are reasonable. Proposer shall describe a detailed explanation of their commitment to the City's Employees including whether or not their current compensation and benefits will be continued and the other terms of their employment. 2.9 ENVIRONMENTAL CONSIDERATIONS Each proposer shall provide the following information: • Clean Air Vehicles: Describe contractor's plan for the maintenance of collection services using CNG or LNG fueled vehicles or some other technology resulting in similar or reduced air emissions. • Hazardous Waste Management:Describe procedures for identifying and handling hazardous waste disposed in the solid waste, recycling materials,and organic materials collected in the performance of these services. 2.10 PUBLIC EDUCATION AND OUTREACH PLAN The City places importance on effective public education and promotion as the key to helping residents and businesses understand more about source reduction, reuse,and recycling. Each proposer shall describe the following services: • Public education programs that will be implemented for the proposed recyclable materials and organic materials programs. • Experience preparing multi-lingual public education materials(preferably in English and Spanish). • Schedule and quantity of information that will be distributed (e.g., newsletters, brochures,etc.). • Public education and outreach staff or subcontractors qualifications, resumes, years of experience,and references. • Samples of similar educational materials,which may have been used in other programs. 2.11 SUBCONTRACTORS Each proposer shall identify all subcontractors by name,address, and federal tax ID number and shall describe all services to be performed by any subcontractors. City of San Bernardino Request for Proposals for Residential&Commercial Solid Waste, October 2832 Recyclable Materials,Organic Materials and Street Sweeping Services 28 3.0 Technical Proposal —Alternative Proposers are encouraged to submit an alternative proposal for service enhancements,innovations,or revenue enhancements.There is no need to repeat any information that that has been described in Section 2.0 of the proposal, however, proposers are asked to provide a thorough description of any component that is not included in the Required Proposal, including service and financial enhancements. The term of this contract will be for twenty(20)years with an automatic annual renewal.Services under this Alternative offer will commence on February 4,2013 and will terminate on its anniversary date, twenty(20)years after notice is given by the City to terminate the annual renewal clause of the contract. 4.0 Financial Proposal Proposers must complete a separate set of financial proposal forms (provided in Attachment 1)for the Required Proposal and for the Alternative Proposal. 5.0 Anti-Collusion Affidavit Each proposer shall complete, sign, and submit the Anti-Collusion Affidavit (Attachment 3). The Anti- Collusion Affidavit shall be part of the proposal. Proposers are cautioned that making a false certification may subject the certifier to criminal prosecution. 6.0 Certification for Local Preference Each proposer shall complete and submit the Certification for Local Preference (Attachment 2), if they seek the benefit of local preference. The Certification of Local Preference Form, if submitted,shall be part of the proposal. Signing the proposal on the signature page thereof shall also constitute signature of the Certification for Local Preference. Proposers are cautioned that making a false certification may subject the certifier to criminal prosecution. Each proposer is encouraged to carefully review the City's Municipal Code requirements for Local Preference. City of San Bernardino Request for Proposals for Residential&Commerciol Solid Waste, October 1012 Recyclable Materials,Organic Materials and street Sweeping Services 29 SECTION 6 - PROPOSAL SUBMITTAL PROCESS Companies submitting proposals to the City shall follow the procedures described in this Section and the procedures included in subsequent clarifications or addendums to this RFP,which are issued by the City or its consultant. Each proposer shall carefully examine each term of this RFP; and each proposer shall judge all the circumstances and conditions affecting their proposal. Failure on the part of any proposer to make such examination and to investigate thoroughly shall not be grounds for any declaration that the proposer did not understand the conditions of this RFP or claim excuse from performance. The proposer shall comply with all federal,state, or local laws, now in effect or hereafter promulgated, which apply to the services and products herein specified. INTERESTED PARTIES Interested parties are directed to register with the City's consultant by signing in at the pre- proposal meeting or by email or fax notice to the City's consultant before November 13, 2012. Interested parties will be contacted directly with any clarifications,addendum or other correspondence related to this process. Sloan Vazquez, LLC 18006 Skypark Circle,Suite 205 Irvine,CA 92614 Attn: Joe Sloan (866)241-4533 info @sloanvazauez.com STEP ONE—WRITTEN QUESTIONS The City directs proposers to submit all questions and requests for information in writing to its consultant and refrain from contacting City employees.Therefore, any questions, requests for clarification, or requests for additional information regarding the RFP should be submitted via email or fax to the City's Consultant before November 13,2012. STEP TWO—PRE-PROPOSAL MEETING AND SUBSEQUENT QUESTIONS A pre-proposal meeting will be held at the City of San Bernardino Public Works yard located at 234 Mt. View, San Bernardino,CA on November 6, 2012.The City may, but is not obligated to,accept proposals received from proposers who do not attend the pre-proposal meeting. Proposers shall submit written questions related to the RFP prior to the pre-proposal meeting via email or fax to the City's Consultant as described in step one. In addition,oral and written questions will be accepted at the pre-proposal meeting. As appropriate, preliminary oral responses will be provided at the conference. Written responses to all questions will be provided on or before November 27,2012. In the event of any inconsistencies between oral and written responses,the written responses shall govern. Questions will not be City of San Bernardino Request for Proposals for Residential&Commercial Solid Waste, October 1012 Recyclable Materials,Organic Materials and Street Sweeping Services 30 accepted after November 13, 2012. Written requests for clarifications will be responded to in writing and shared with all interested proposers of record. STEP THREE—PROPOSAL SUBMITTAL Proposers shall submit two bound copies and one unbound production-ready copy of the complete proposal. In addition,electronic media (i.e.,CD,DVD,flash drive,etc.)containing an electronic copy of the proposal and of all completed rate and proposal forms(i.e.,forms provided in Attachment 1),in Microsoft Excel format,shall be clearly marked and submitted in the sealed package. All pages shall be numbered. The package shall be sealed and clearly labeled: PROPOSAL FOR SOLID WASTE, RECYCLABLE MATERIALS, ORGANIC MATERIALS,&STREET SWEEPING SERVICES FROM: Name of Proposer: Address: Contact Person: Telephone No: Fax No. Email: The proposal may be mailed or hand delivered to: Office of the City Clerk City of San Bernardino 300 N D Street San Bernardino,CA 92418 All proposals must be received prior to 3:00 p.m. on December 4, 2012. All proposals received will be opened and recorded at that time.The time clock in the City Clerk's office will be the official clock for documenting the time of proposal submittal. Postmarks will not be accepted as proof of receipt. Proposals must be accompanied by a non-refundable proposal fee in the amount often thousand dollars($10,000) in the form of a cashier's or certified check, payable and acceptable to the City of San Bernardino.The proposal fee shall be submitted with the proposal in a separate,clearly labeled envelope. Proposals received by the City shall become the property of the City and are subject to public disclosure. The proposals will be available for review after completion of contract negotiations and concurrent with the recommendation of the City Council to execute the contract. Note that City of Son Bernardino Request for Proposals for Residential&Commercial Solid Waste, October 2012 Recyclable Materials,Organic Materials and Street Sweeping Services 31 price and cost proposal information shall become property of the City and subject to public disclosure as this information is necessary for the City Council to evaluate the value of proposals. STEP FOUR—CLARIFICATION OF PROPOSAL INFORMATION Proposers may be asked to clarify information through writing, interviews,or site visits with City staff or its consultant. Proposers shall cooperate with the City s request for such clarification.Proposers who do not cooperate with or who provide incomplete or ambiguous responses to requests for clarification may be deemed non-responsive. STEP FIVE—PROPOSAL EVALUATION The City will review all proposals that are deemed to have met the minimum qualifications of this process and are responsive to the requirements of this RFP.This evaluation will be based on the criteria described in Section 3 of this RFP. STEP SIX—CITY COUNCIL SELECTION OF PREFERRED PROPOSERS The City Council will consider the staff recommendation. Based on the recommendation and the City Council's determination of the best value to the City,the City Council will direct staff to either execute the draft franchise agreement or negotiate the final terms the specific proposer. The City Council may also determine that there is not sufficient value provided to the City by privatizing the solid waste collection operations and, in such a case,may reject all proposals. STEP SEVEN—NEGOTIATIONS Based on the direction of the City Council,the City may enter into negotiations with one or more proposers. Should any preferred proposer be unable to execute an agreement with the City within 30 days of the City Council's selection of a preferred proposer,the City may terminate negotiations with that proposer and enter into negotiations with one or more back-up proposers. City of Son Bemardino Request for Proposals for Residential&Commercial Solid Waste, October 2012 Recyclable Materiels,Organic Materials and Street Sweeping Services 32 ATTACHMENTS ATTACHMENT 1-FINANICAL PROPOSAL FORMS ATTACHMENT 2-LOCAL PREFERENCE CERTIFICATION FORM ATTACHMENT 3-NON-COLLUSION AFFIDAVIT ATTACHMENT 4-CITY OWNED COLLECTION EQUIPMENT ATTACHMENT 5-EQUIPMENT LEASE INFORMATION ATTACHMENT 6-CURRENT RATE SCHEDULE ATTACHMENT 7-CITY SERVICE LOCATIONS ATTACHMENT 8-BUSINESS PLAN FOR IWMD MAY 2008 City of San Bernardino Request for proposals for Residential&Commercial Slid waste, October 2012 Recycluble Materials,Organic Materials and Street Sweeping Services 33 ATTACHMENT 1 FINANCIAL PROPOSAL FORMS [TO BE COMPLETED BEFORE DISTRIBUTION OF RFP] City of Son Bernardino Request for Proposals for Residential&Commercial Solid waste, October 2012 Recyclable Materials,Organic Materials,&Street Sweeping Services Page 1 of 1 ATTACHMENT 2 Proposer's Name CERTIFICATION FOR LOCAL PREFERENCE FOR SOLID WASTE,RECYCLABLE MATERIALS,ORGANIC MATERIALS AND STREET SWEEPING SERVICES We certify that we qualify as a local business pursuant to the City of San Bernardino's Executive Order 2003-1 Local Business Preference for Contractual Services Location of Business: Primary Office[ j (Please provide street address,no P.O. Box) Branch Office [ j (Please mark as applicable) Address: Phone: The undersigned proposer hereby declares under penalty of perjury that the information contained on this Certification for Local Preference is correct and complete. Dated: Signature Title Proposers are cautioned that making a false certification may subject the certifying signatory to criminal prosecution. City of San eemardina October 2012 Request for proposals for Residential&Commercial Solid Waste,Recydabie Materials,and Organic Materials Services -_._..YY.a�..-.. _....,- ...._�-,-�.�:.a -,-..� .�_ - - ..._., a^"^•c.?=ru`R�� 5ai{?'mt?�R�9®A ATTACHMENT 2-LOCAL PREFERENCE EXECUTIVE ORDER — CITY OF SAN BERNARDINO INTEROFFICE MEMORANDUM OFFICE OF THE MAYOR TO: Fred Wilson, City Administrator Gary Van Osdel,Executive Director,EDA All City and EDA Department Heads FROM: Mayor Judith Valles DATE: September 2,2003 RE: EXECUTIVE ORDER 2003-1 LOCAL BUSINESS PREFERENCE FOR CONTRACTUAL SERVICES COPIES: Council Members City Attorney City Clerk City Treasurer San Bernardino Municipal Code Section 3.04.085(B)states: "Contractual Services with a value in excess of twenty-five thousand dollars must be approved by the Mayor and Common Council pursuant to Requests For Proposals as authorized by the Mayor and Common Council." I believe that the City should provide local business preferences for contractual services with a value in excess of$25,000 because of the following two findings: A. Local businesses which seek to enter into service contracts with the City of San Bernardino are at a competitive disadvantage with businesses from other areas because of certain higher administrative costs of doing business in the City(such as utility users' tax, etc.). City of San Bernardino 1 of 3 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyclable Materials,Organic Mateirals,&Street Sweeping Services ATTACHMENT 2-LOCAL PREFERENCE EXECUTIVE ORDER © 4 Executive Order 2003 -1 September 2,2003 Page 2 B. The public interest would best be served by encouraging businesses to locate and remain in the City of San Bernardino through the provision of a minimal"good faith"preference to local businesses in the awarding of certain City contracts. A city's authority to grant preferences to local businesses in awarding city contracts has been supported by federal courts of appeal: Associated General Contractors of California, Inc. v. City and County of San Francisco, 813 Fed 2d 922(9th Cit. 1987); J.F. Shea Company,Inc. v. City of Chicago, 992 Fed 2d 745 (7th Cir. 1993). Therefore, in my capacity as Mayor of this City and Chairperson of the Economic Development Agency and by this Executive Order,I hereby: (1) Direct all Department Heads to grant a 5%local business preference in Requests For Proposals for contractual services with a value in excess of$25,000 which require approval bythe Mayorand Common Council or the Community Development Commission, unless contrary to federal, state, or local law (such as contracts for the construction of public works projects) or unless contrary to the requirements mandated by the funding source for such contractual services (such as the federal goverment, which in most if not all cases,requires award to the lowest responsible bidder). (2) Direct all Department Heads to grant a 5%local business preference for contractual services with a value of $25,000 or less, unless contrary to federal, state, or local law (such as contracts for the construction of public works projects) or unless contrary to the requirements mandated by the funding source for such contractual services (such as the federal government, which in most if not all cases,requires award to the lowest responsible bidder). I. City of San Bernardino 2 of 3 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyclable Materials,Organic Mateirals,&Street Sweeping Services ATTACHMENT 2-LOCAL PREFERENCE EXECUTIVE ORDER ® 0 Executive Order 2003 —1 September 2,2003 Page 3 (3) A "local business", for the purpose of granting a local business preference, shall mean a business possessing a fixed office or distribution point with at least one owner or employee within the City of San Bernardino,and possessing all valid and current permits and licenses required to transact such business,including,but not limited to a City Business Registration Certificate. (4) If any part or provision of this Order is in conflict or inconsistent with any applicable provision of federal,state,or local law,or is otherwise held to be invalid or unenforceable by any court of competent jurisdiction,such part or provision shall be suspended and superseded by such applicable law,and the remainder of this Order shall not be affected thereby. I I Dated: Jud,4 Valles y r/Chairperson,Economic Development Agency Approved as to form and legal content: 06 es F.Penman, City Attorney I City of San Bernardino 3 of 3 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyclable Materials,Organic Mateirals,&Street Sweeping Services ATTACHMENT 3 NON-COLLUSION AFFIDAVIT Proposer's Name FOR: SOLID WASTE,RECYCLABLE MATERIALS,ORGANIC MATERIALS,AND STREET SWEEPING SERVICES Proposer declares under penalty of perjury under the laws of the State of California that this proposal is not made in the interest of or on behalf of any undisclosed person, partnership, company, association,organization or corporation;that such proposal is genuine and not collusive or sham;that said Proposer has not directly or indirectly induced or solicited any other Proposer to put in a false or sham proposal and has not directly or indirectly colluded,conspired,connived,or agreed with any Proposer or anyone else to put in a sham proposal,or that anyone shall refrain from submitting a proposal;that said Proposer has not in any manner directly or indirectly sought by agreement, communication, or conference with anyone to fix the proposal price of said Proposer or of any other Proposer,or to fix any overhead, profit, or cost element of such proposal price,or of that of any other Proposer,or to secure any advantage against the public body awarding the Contract of anyone interested in the proposed Contract;that all statements contained in such proposal are true,and further,that said Proposer has not directly or indirectly submitted his proposal price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto,or paid and will not pay any fee in connection therewith,to any corporation,partnership, company, association,organization, proposal depository,or to any member or agent thereof, or to any other individual except to any person or persons as have a partnership or other financial interest with said Proposer in this general business. The above Non-Collusion Affidavit is part of the proposal. Signing this proposal on the signature page thereof shall also constitute signature of this Non-Collusion Affidavit. Proposers are cautioned that making a false certification may subject the certifier to criminal prosecution. City of San Bernardino Request for Proposals for Resldentlol&Commercial October 2012 Solid Waste,Recyclable Materials,and Organic Materials Services ATTACHMENT asset N description data acaulred debt at 06130112 CITY OWNED COLLECTION 20070288(1)2007 AUTOCAR WX64 AUTO LOADER LABRIE,VIN 5VCDC6RE57H2O5080 06101/2007 $ 67,900.41 EQUIPMENT 20070289(1)2007 AUTOCAR WX64 AUTO LOADER LABRIE,VIN SVCDC6RE97J205082 0610112007 $ 67,900.41 20070290(1)2007 AUTOCAR WX64 AUTO LOADER LABRIE,VIN SVCDCGRE47H2O5085 0610112007 $ 67,900.41 20070285(1)S007 AUTOCAR WZ64 AUTO LOADER LABRIE,VIN 5VCDC6RE57H2O5077 0610112007 $ 67,900.65 20070286(1)2007 AUTOCAR WX64 AUTO LOADER LABRIE,VIN SVCDC6RE37H2O5076 06/01/2007 $ 67,900.65 20070287(1)2007 AUTOCAR WX64 AUTO LOADER LABRIE,VIN SVCDC6RE97H2O5079 06/0112007 $ 67,900.65 20070281 (1)2007 AUTOCAR WX64 AUTO LOADER LABRIE,VIN 5VCDC6RE77H2O5078 06/01/2007 $ 67,900.65 20080287(1)2007 AUTOCAR Wi(64 AUTO LOADER VIN SVCDC6REX7H2O5088 0710112007 $ 67,900.65 20080282(1)2007 AUTOCAR WX64 AUTO LOADER VIN 5VCDC6RE77H2O5081 07/012007 $ 67,900.41 20080283(1)2007 AUTOCAR WX64 AUTO LOADER VIN SVCDC6RE07H2O5083 07/012007 $ 67,900.41 20080284(1)2007 AUTOCAR WX64 AUTO LOADER VIN 5VCDCSRE27H2O5084 07/01/2007 $ 67,900.41 20080285(1)2007 AUTOCAR WX64 AUTO LOADER VIN 5VCDCGRE67H2O5086 07/012007 $ 67,9D0.65 20080286(1)2007 AUTOCAR WX64 AUTO LOADER VIN SVCDC6RE87H2O5087 071012007 $ 67,900.65 $ 882,707.00 20080296(1)2008 AUTOCAR WXLL64 REAR LOADER VIN SVCHC6LE28H2O6716 0610112008 $ 123,606.24 20080297(1)2008 AUTOCAR WXLL64 SIDE LOADER VIN 5VCDC6LE58H2O6725 0610112008 $ 146,820.94 20080298(1)2008 AUTOCAR WXLL64 SIDE LOADER VIN 5VCDC6LEX8H2O6722 06/01/2008 $ 146,821.40 20080299(1)2008 AUTOCAR WXLL64 SIDE LOADER VIN 5VCDC6LE98H2D6730 06/01/2008 $ 146,821.40 $ 564,069.98 20080291 (1)2008 AUTOCAR WXLL64 FRONT LOADER,VIN SVCHC6LE88H2O6719 061012008 $ 129,276.58 20080292(1)2008 AUTOCAR WXLLS4 FRONT LOADER,VIN SVCHCSLE68H2O6718 061012008 S 129,276.58 20080293(1)2008 AUTOCAR WXLL64 FRONT LOADER,VIN SVCHC8LE4aH2D6717 06/01/2008 $ 129,276.58 20080294(1)2008 AUTOCAR WXLL64 ROLL OFF VIN SVCHCSLE48H2O6720 06/01/2008 $ 104,204.90 20080295(1)2008 AUTOCAR WXLL64 ROLL OFF VIN SVCHC6LE68H2O6721 06/012008 $ 104,205.36 $ 596,240.00 20110038(1)2011 AUTOCAR ACX64 FRONT LOADER VIN SVCACLLElBH211820 111012010 S 206,964.89 20110039(1)2010 SCHWARZE M-61100SE-CNG SWEEPER,S/N 1D-M6CNG-0622 AND(1)STERLING AC1 111012010 $ 235,305.02 20110040(1)2008 AUTOCAR WXLL64 FRONT LOADER,VIN 5VCHC6LEX8H2O6740 11/012010 $ 206,954.89 20110041 (1)2011 AUTOCAR ACX64 ROLL OFF VIN WCACLLE5BH211819 11/012010 $ 167,372.07 20110044(1)2011 AUTOCAR ACX64 AUTOMIZER VIN 5VCACRLE2BH211814 01/012011 S 263,933.59 20110045(1)2011 AUTOCAR ACX64 SIDE LOADER VIN SVCACRLE9BH211a12 01/012011 $ 263,933.59 20110046(1)2011 AUTOCAR ACX64 SIDE LOADER VIN 5VCACRLE6BH211816 01/01/2011 $ 263,933.59 20110047(1)2011 AUTOCAR ACX64 SIDE LOADER VIN 5VGACRLEBBH211817 011012011 $ 263,933.59 20110048(1)2011 AUTOCAR ACX64 SIDE LOADER VIN 5VCACRLEXBH211818 011012011 $ 263,933.59 20110042(1)2011 AUTOCAR ACX64 AUTOMIZER VIN 5VCACRLEOBH211813 01/012011 S 263,933.59 20110043(1)2011 AUTOCAR ACX64 AUTOMIZER VIN 5VCACRLE4BH211815 01/012011 $ 263,933.59 $ 2,664,122.00 20090203(1)2008 AUTOCAR WXLL64 W/LABRIE SIDELOADER VIN SVCDC6LE38H2O6724 07/012008 $ 147,129.00 20090204(1)2008 AUTOCAR WXLL64 W/LABRIE SIDELOADER VIN SVCDCSLEtaH2O6723 071012008 $ 147,129.00 20090205(1)2008 AUTOCAR WXLL64 W/LABRIE SIDELOADER VIN SVCDC6LE78H2O6726 07101/2008 $ 147,129.00 20090209(1)2008 AUTOCAR WXLL64 VIN SVCDC6LE98H2O6727 08/012008 $ 147,129.00 20090206(1)2008 AUTOCAR WXLL64 VIN 5VCDC6LE08H2O6728 08/0112008 $ 147,129.00 20090207(1)2008 AUTOCAR WXLL64 VIN 5VCDCSLE28H206729 08/01/2008 $ 147,129.00 20090208(1)2008 AUTOCAR WXLL64 VIN SVCDC6LE08H2O6731 08101/2008 $ 147,129.00 $ 1,029,903.02 20100038(1)2010 AUTOCAR WXLLS4 REAR LOADER VIN 5VCHC6LEX9H2O9572 08/0112009 $ 162,645.11 20100043(1)2009 AUTOCAR WX64R SIDE LOADER VIN 5VCDC6LE99H2O9676 09/01/2009 $ 199,456.56 20100044(1)2009 AUTOCAR WX64R SIDE LOADER VIN 5VCDC6LE79H2O9675 091012009 $ 199,456.56 20100045(1)2009 AUTOCAR WX64R SIDE LOADER VIN SVCDC6LE39H2O9673 09101/2009 $ 199,456.56 20100046(1)2009 AUTOCAR WX64R SIDE LOADER VIN 5VCDC6LE59H2O9674 09/01/2009 $ 199,456.56 20100047(1)2009 AUTOCAR WX64R SIDE LOADER VIN 5VCDCSLEO9H2O9677 10/01/2009 $ 199.456.56 201110048(1)2009 AUTOCAR WX64R SIDE LOADER VIN 5VCDC6LE29H2O9678 10/012009 $ 199,456.56 20100049(1)2009 AUTOCAR WX64R SIDE LOADER VIN WCOCKE491-12O9679 10/01/2009 $ 199,456.56 $ 1,558,841.00 20100039(1)2010 AUTOCAR WXLL64 ROLL OFF VIN SVCHC6LE99H2O9680 0810112009 $ 127,654.27 20100041 (1)2009 AUTOCAR WXLL64 FRONTLOADER VIN 5VCHC6LE69H2O9670 09/012009 $ 169,141.24 20100042(1)2009 AUTOCAR WXLL64 FRONTLOADER VIN SVCHC6LE89H2O9671 09/01/2009 $ 169,141.24 20100040(1)2009 AUTOCAR WXLLS4 FRONTLOADER VIN SVCHC6LEX9H2O9669 09/01/2009 $ 169,141.24 $ 635,078.00 20070283(1)2007 AUTOCAR WX84 VIN 5VCDCBRE17H2O5075 06/01/2007 $ 55,186.01 20070279(1)2007 AUTOCAR WX64 VIN 5VCDCSRE87H2O5073 061012007 $ 55,186.29 20070280(1)2007 AUTOCAR WX64 VIN 5VCDC6RE67H2O5072 06/01/2007 $ 55,186.29 20070282(1)2007 AUTOCAR WX64 VIN SVCDCSREX7H2O5074 06101/2007 $ 55,186.01 20080280(1)2007 AUTOCAR WX64 FRONT LOADER VIN SVCHC6RE67H2O5090 07/012007 $ 69,899.70 20080281 (1)2007 AUTOCAR WX64 FRONT LOADER VIN 5VCHC6RE87H2O5091 07101/2007 $ 69,899.70 $ 360,544.00 20070204(1)2007 SCHWARZE A-80DOCNG SWEEPER 07-A8CNG-0078 S/N 49HXCP0097DX66289 06/012007 $ 57,298.93 20080288(1)2007 SCHWARZE M-6000 VIN 2FZXCLOO28AZ60107 05/012008 S 57,197.53 20080289(1)2007 SCHWARZE M-6000 VIN 2FZXCL0008AZ60106 05/012008 $ 57,197.53 $ 171,694.00 new Ford F-550 an 3928 $ 36,226.17 new Ford F-550 sn 3929 $ 40,164.06 new Ford F-550 sn 3927 $ 35,265.48 new Autowr side loader an 3108 $ 332,506.80 new Autowr side loader an 3109 $ 332,506.80 new Autocar side loader an 3104 S 272,056.85 new Autowr side loader sn 3105 $ 272,056.85 new Autowr roll o8 an 3107 $ 213,515.05 new Schwarze broom sweeper vin 11913 $ 282,559.92 $ 1,816,858.00 $ 10,280,057.00 City of San Bernardino 1 of 1 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyclable Materials,Organic Materials,and Street Sweeping Services o c " E � 2 Oy O U a z b yu°y 2 ¢in W `pb a _ S o m m m m m m m m m m m m m m m m J J J J J J J J 3 J J J 3 J J J C C C C C C C C C C C C C C C C W V i JQ EEEE E E E EEEEEE E E E E w d g m m m m m m m m m m m m m m m m = LL n 0 m m m 0 w N m m N w m m w m N ¢ v Y m m 0 m o m o o n m S m n m m m E k � u � Y m m t�l m O m Opl pnp d t7 Y N m m N N m ¢ 6 C p m Y Omi �w 0 0 m m l�l ^ O N N m N N T fd0 N Ol m Y m Ol b m m � rn m e m d m n C C m Y M m n N W ('1 O (7 t7 n 10 d O n Yl n m C) N O Ol N n b N m W O M m W N m m n d OC g d Y t0 m N N N m N r a n N 3 d o d O OD N Ol l7 N N Y O n Yf N m l7 °- N Y Iq N m m O N O m m m m t7 d M m y m n Y W N t7 N N Y m Y N Y t7 It m Cl m � n N Y N m ld9 N W T r! N m O m m m m N C ' N O m m [7 m m A Ol C) W m N O m m N n Y m n N m O M N O m m O m O N d C n �O m m -0 N O O O n m m O m Y 0 0 a` 0 o a c 0 v a pp n m N N m ♦W♦ m f7 m O N mmW N N 0 n a0 m T 0 Y O vi N cs to N .6 CO'f_ N O u C 100 Oml m Iq W 10 O lh w m Ol d m O N n m m m !� M m m m m m n m m (y m m n N N l7 m m � N JQ f y F F r 0 m 0 0 O C O LL m w N 12 q m m O y m 0 U 9 E2 i L o N D V C y O r w d N m K m m Q m K c m n n jj5 m m C N n C 4 0 _ o@ Y 2 N n N m J 0 L LL m m N u a m o ry v ; o 0 w N w d n o 0 a K fn M cv9-i K ° u` K K U N U I;A n n n o mo m `o Y U ak U ik U m m m m m E � � c � E � c E •C (p J y - p J E E `m m E E m m m E m J Q Q V * Q Q U # m ¢ U m m 3 m N Y Y m U m J Y Y m U m J Y J C c c 3 c c E J c 3 c E c 3 � mm � aaz m" mcimE moFLz m m m m m m m m m m m m n n n m 0 m 0 0 m m 0 m m m m 0 0 0 0 g q o q o 0 0 0 0 0 0 0 o g o q 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o g o 0 0 0 0 0 0 0 m A ri ci c%i A ci 0 n of 0 0 0 of of 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o m m m m m m m m m m m m m m m m Z m m m m m m m m m m m m m m m m 000000 000000 0000 `- � o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 J q vn n° Y 4 Y ' � n n n Q m m m m m m m m m m m 10 m m m m �f Zo UO ATTACHMENT 6-CURRRENT RATE SCHEDULE #.SAN BERN300 COMMERCIAL REFUSE RATES PLEASE CALL IN REQUEST FOR EXTRA PICK-UPS OR ON-CALL SERVICE NO LATER THAN 11:00 AM FOR SAME4)AY SERVICE MANUAL COLLECTION FOR SMALL BUSINESSES Manual collection of solid waste is available to small businesses that cannot be safely accessed by a service vehicle --materials must be bagged,boxed or bundled with a 6D.Ibs maximum weight The rate Is$108.68 per month for once weekly service,and$108.68 per month for each additional day per week service. TEMPORARY FRONT-LOAD BIN REFUSE SERVICE Temporary 3 yard bins may be provided for up to 7 calendar days.The rate is$69.00.Additional services may be provided upon pre-payment at a rate of$2750 per collection service. FRONT-LOAD BIN REFUSE SERVICE BIN SIZE NUMBER OF SERVICE DAYS PER WEEK EXTRA PICK-UP CUBICYARDS 1 2 3 4 5 6 2 $112.10 $205.32 1 $304.44 5401.20 $495.60 $661.98 525.28 3 $119.18 $22556 $335.12 $440.14 $54752 $840.16 $27.50 4 $130.98 $247.80 $364.62 $480.26 $595.90 $1,036.04 $30.11 6 S189.98 $36226 $535.72 $713.90 5876.74 $1,041.94 $35.68 FRONT-LOAD COMPACTORREFUSE SERVICE MN SIZE NUMBER OF SERVICE DAYS PER WEEK EXTRA PICK-UP CUBIC YARDS 1 2 3 4 5 6 2 $130.98 5245.44 1361.08 $476.72 $591.18 5786.35 $27.50 3-4 $154.58 5287.92 1 $423.62 $553.42 1 $692.66 $952.12 $30.11 FRONT-LOAD CO-MINGLED PACKAGING&PAPER RECYCLING SERVICE BIN SIZE NUMBER OF SERVICE DAYS PER WEEK EXTRA PICK-UP BIN 512E ON-CALL CUBIC YARDS 1 2 3 4 5 6 CUSICYARDS PICKUPRATES 2.6 $41.50 $83.00 $124.50 5166.50 $208.00 N/A 527.50 2 $25.28 3 $2750 4 $30.11 6 $35.68 OPEN-TOP OR COMPACTOR ROLL-OFF REFUSE SERVICE CUBIC WEIGHT OVER-WEIGHT YARDS RATE UM1T, TONNAGE REDTAG 10 $335.12 per pug+$44.65 Perron 2 TONS 548.73 $13750 20 $335.12 per pull+$44.65 pert.. S70N5 $48.73 $13750 30 $335.12 per pug+$44.65 per ton 7TONS 548.73 $13750 40 $335.12 per pug+$44.65 per ton STONS $48.73 $137.50 ROLL-OFF OPEN-TOP RECYCLING&GREEW UNCONTAMINATED WOOD WASTE SERVICE OR ROLL-OFF COMPACTOR COMPOSTABLES SERVICE COMPACTOR ROLL-OFF RECYCLING SERVICE CUBIC RATE GREEN WASTE UNCONTAMINATED WEIGHT REDTAG CUBIC RATE REDTAG YARDS TONNAGE WOODTONNAGE LIMIT YARDS 10 $335.12 per pull+$44-65 per ton 532.87 $25.00 2TONS 513750 10 $142.00 per pull $137.50 20 $335.12 per pull+$44.65 per ton $32.87 $25.00 5TONS $13750 20 $142.00 per pull $13750 30 5335.12 per pull+$44.65 per ton $32.87 $25.00 7TON5 $137.50 30 $142.00 per pull $137.50 40 $335.12 per pull+$44.65 per ton $32.87 $25.00 8TONS $137.50 40 5142.00 per pull $13750 All rates are the same for private and City-owned bins.The City provides only 2,3,4,6,10.20,30,40 cubic yard bins 1 Overweight bads will h charged at$36.73 per ton plus a 512.00 per tan penalty m addition to all other charges. Fates an eRectln January 1,2009,as esta611shedin Me City of San aemardMo Resolution 2,004-443.St deaao una de sate Informed..en esaa..t Porfavar Name ofnumen hrdleadaa hrcebem de M"ims City of San Bernardino 1 of 2 Request for Proposals for Residential&Commercial October 12,2012 Solid Waste,Recyclable Materials,Organic Materials,&Street Sweeping Services ATTACHMENT 6-CURRRENT RATE SCHEDULE Residential Services Service Deposits Residential service Residential Carts 1 Full Set $22.84 a month $50 Add. Black cart $12.97 a month $75 if lock nonpay Add.Green Cart $11.35 a month Commercial Carts Add.Blue Cart no cost $220 Late set out return trip $28.75 ,r �i„/cam, Bulky Item p/u with charge $36.23 per 15 minutes I } 7 Day Special $691 1 1 7 Day Special Extra P/U $27.50 Commercial Carts $108.68 a month Cart Replacement $74.75 each cart Bin Service Times a week 2 Yard Bin 3 Yard Bin 4 Yard Bin 6 Yard Bin 1 $112.10 $119.18 $130.98 $189.98 2 $205.32 $225.56 $247.80 $362.26 3 $304.44 $335.12 $364.62 $535.72 4 $401.20 $440.14 $480.26 $713.90 5 $495.60 $547.52 $595.90 $876.74 6 $661.98 $840.16 $1,036.04 $1,041.94 Add. Pick Up $25.28 $27.50 $30.11 $35.68 Deposits $220 $240.001 $260.00 1 $380.00 Bin Misc,Services Lock $17.70 Bin Enclosure Cleaning $37.17 Bin Roll Out Service $67.26 Bulky Item P/U $36.23 Bin Steam Clean $133.34 Rolloff Services 0 en Top or Compactor Size 10 Yard 20 yard 30 yard 40 yard Rate 335.12 per 335.12 per 335.12 per 335.12 per pull+ pull+ pull+ pull+ $44.65 per $44.65 per $44.65 per $44.65 per tnn ton ton tnn ,Weight Limit 2 Tons 5 Ton 7 Tons 8 Tons Over WeightTonna a $48.73 $48.73 $48.73 $48.73 Redta $137.50 $137.50 21-37.50 $137.50 Deposit $350.00 $350.00 $350.00 $350.00 Rolloff Misc.Services Contamination Fee $59.00 Standing or Roll Back Charge $135.70 Steam Cleaning $133.34 Bin Repair per hour rate $66.91 Recycle Contamination $59.00 Front Load Co-Mingled Packaging&Paper Recycling Times a Week Bin Size 1 11 21 4 5 Extra P/U 2 thru 6 yard bins $41.50 $83.00 $124.50 $166.50 $208.00 $27.50 Compactor Roll-Off Recycling Service Bin Size Rate lRectag 10410 yard 1 $142.00 1 $137.50 City of San Bernardino 2 of 2 Request for Proposals for Residential&Commercial October 12,2012 Solid Waste,Recyclable Materials,Organic Materials,&Street Sweeping Services ATTACHMENT7 CITY SERVICE LOCATIONS CUSTOMER NAME ADDRESS Fire Department Central Fire Station#1 200 E 3rd Street Fire Station#222 1201 W 9th Street Fire Station#223 2121 N Medical Center Dr Fire Station#224 2641 N E Street Fire Station#225 1640 W Kendall Dr Fire Station#226 1920 N Del Roas Ave Fire Station#227 282 W 40"'Street Fire Station#228 3398 E Highland Ave Fire Station#229 202 N Meridian Ave Fire Station#230 502 S Arrowhead Ave Fire Station#231 450 E Vanderbilt Way Fire Station#232 6085 N Palm Ave Fire Station#233 165 S Leland Norton Way Fire Department Automotive Shop 120 D Street San Bernardino City Fire Department 24600 E Arrowhead Springs Police Department Police Department 710 N D Street Police Pistol Ranch 1100 E Highland Ave San Bernardino PD 1834 S Business Center Dr Animal Control 333 W Chandler PI Mayors Office Mayor's Office/City Wide 300 N D Street Mayor's Office/Nick Gonzale 14"&California Mayors Office/Nick Gonzale 5673 N Acacia Ave Mayor's Office/Nick Gonzale E Harwick&Wier Rd Mayor's Office/Nick Gonzale California &Baseline Mayor's Office/Nick Gonzale 1567 W Kendall Dr Mayor's Office/Nick Gonzale N Palm Ave&Ohio Parks Department Park&Recreation 1494 E Art Townsend Dr Park&Recreation Department 1350 S E Street Parks&Recreation E Harwick&Weir Rd Parks Department 234 S Mtn View Ave Parks De t-T 234 S Mtn View Ave CID,TT,Parks Dept 8088 N Palm Ln Lytle Creek Park 300 5 K Street Meadowbrook Park 51h& Belle Meadow rook Park 2nd& Mt View Ave Parks/Chilli Cook Off 689 S E Street City of Son Bernardino Request for Proposals for Residential&Commercial Solid waste, October 1032 Recyclable Materials,Organic Materials,&Street Sweeping Services Page 1 of 3 Perris Hill Park 1100 E Highland Ave Rio Vista Park 14"'&California San RI Fields/Nicolson Park 2"'&Meridian Seccombe Park 5"'& Lugo Ave Hernandez Community Center 222 N Lu o Ave Antil Garden Project 868E 6`h Street Johnson Hall 906 N Wilson Street Meadow Nutrition Center 123 N Mtn View Ave New Perris Hill Sen Center 780 E 21"Street Norton Neighborhood Center CFD 24424 E Monterey Ave Ruben Campos 1717 W 5"'Street Senior Citizens Ser Center 600 W 5"'Street Warner-Hod edon Field 200 E 7`h Street Little League Doty Field 40th&Waterman Ave Melton Field 300 E 40"'Street Del Road Little League Park Marshall/Mountain Ave Civitan Little League Park Lynwood&Sterling Street Carl Kar er Field#39 39"'&Electric Palm Field 790 E 6`h Street Porterfield Little League 226 E 7`"Street Blair Park 1466 W Marshall Blvd Highland Fields North Arden&Pacific Highland Fields South Pacific&Arden Nicholson Community Center 2750 W 2n"Street Guadalupe Field 8'h&Western Gutierrez Field 14`n&Mt Vernon Ann Shirrells Park 1367 N California Street Ballard Field 1700 W 5`h Street Mill Community Center 503 E Central Ave Nunez Park 1717 W 51h Street Delman Heights Center 2969 N Flores Street Wildwood Elks Field 500 E 401h Street Post 777 Little League Marshall/Little Mtn City Yard Central Store/Yards 181 S Pershing Ave Electrical Shop-T 182 S Sierra Way City Garage 182 S Sierra Way IWMD/Metal Bin Yard 234 S Mtn View Ave Paint Sho -T 231 S Pershing Ave Public Works Bldg 231 S Pershing Ave Refuse Yard/Warehouse-R 180 S Sierra Way SB Electrical Dept 234 S Mtn View Ave SB I W M D—Tires 234 Mtn View Ave Street De artment/Bull Pen 234 Mtn View Ave City of San Bernardino Request for Proposals Jar ResldenOal&Commerclol Solid Waste, October 2012 Recyclable Materials,Organk Materlak,&Sheet Sweeping Svviaa Page 2 of 3 Street Department/Code Abatement 1455 W Temple Street Library Feldhe m Central Library 555 W 6"'Street Rowe Branch Library 108 E Marshall Blvd Villasenor Branch Library 525 N Mt Vernon Blvd Code Compliance Code Compliance/Gerald 530 W 10'h Street Code Compliance/Jodi 1216 E Gould St A EDA Redevelopment Agency 1450 N Waterman Ave Soccer Blast Soccer Field 3500 W Little League Dr California Youth Soccer Association 2500 E Pacific Street Arrowhead Stadium 280 S E Street Carousel Mall 4"&G Street Route 66 IWMD/Route 66 5"&D Street IWMD/Route 66 2nd Street&Mtn View Ave City Hall 300 N D Street Cemetery -T&Sierra Way Miscellaneous San Bernardino Community Gardens 834 E 6"Street Historical Heritage House 792 N D Street Inland Regional 1150 S Tippecanoe Ave Los Padrinos Tippecanoe&Cooley Norton Airforce Base Gym 1554 E Art Townsend Dr Roosevelt Bowl 1001 E Highland Ave Santa Claus Inc 824 E 6"'Street Sturgis Auditorium 780 N E Street City of San Bernardino Request for Proposals for Residential&Commercial Solid Waste, October 1012 Recyclable Materials,Organic Materials,&Street Sweeping Services Page 3 of 3 ATTACHMENT 8-IWMO BUSINESS PLAN MAY 2008 Business Plan forthe Integrated Waste Management Division 1ND/ 01��J 0 A 2 U S � e Submitted to: City of San Bernardino Public Services Department May 2008 �3Consulting Group, Inc. Resources,Respect,Responsibility City of San Bernardino 1 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street Sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino 2 0138 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street Sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino Cover I W M TABLE OF CONTENTS........................................................................................i Division 1.0 BACKGROUND...............................................................................1 Business Plan 2.0 APPROACH ....................................................................................2 3.0 LIMITATATIONS .............................................................................2 4.0 FINDINGS AND RECOMMENDATIONS ........................................3 4.1 Findings ...................................................................................3 4.2 Recommendations...................................................................4 5.0 FINANCIAL PLAN .........................................................................14 5.1 Budget Projections.................................................................14 5.2 Example FY 2008/09 Rates...................................................17 5.3 Potential Revenue Enhancements and Cost Reductions.............................................................................18 5.4 Financial Model Assumptions................................................19 6.0 EXAMPLE IMPLEMENTATION STEPS........................................21 LIST OF TABLES Table 1 Projected Capital Needs For FY 08/09— FY 12/13.................14 Table 2 Cost for Additional Staff For FY 08/09..................................... 15 Table 3 Cost of Implementing Recommendations................................15 Table 4 Projected Costs, Revenue and Rate Increases For FY 08/09— FY 12/13 ...............................................................16 Table 5 Example FY 2008/09 Monthly Rates....................................... 17 Table 6 Cost Decreases and Revenue Increases From Implementing Recommendations............................................18 Table 7 Line Of Business (LOB)Allocation Factors.............................20 IZ5 Pagei City of San Bernardino 3 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,8 Street Sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino l W A This page intentionally left blank. Business Plan IZ5 Page ii City of San Bernardino 4 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street Sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino 1 .0 Background IWM The City of San Bernardino Integrated Waste Management Division (Division) Division provides collection services to approximately 43,500 residential customers and Business 3,500 commercial customers within the City. Residential solid waste, recycling and yard waste collection services are provided weekly on a 4-day per week 10- Plan hour per day schedule. Residential collection operates on a three-pass system, where separate route drivers collect garbage, recyclables and green waste materials (Separate Commodity Routes). Commercial collection services are provided six days per week to provide service to commercial accounts. The City also provides a small amount of Commercial recycling and green waste collection services. The Division had an annual budget of $24,600,000 for FY 07/08. The annual expenditures are split between residential and commercial services with approximately 52 percent of the costs going for residential services and 48 percent of the cost going to the commercial services. The City of San Bernardino has approximately 100 employees that provide residential, commercial, and roll-off collection services. Over the past two years, the Division has begun the process of addressing current operational challenges, including: • Purchased 20 new vehicles in FY 2006-07, • Purchasing 17 additional vehicles in FY 2007-08; • Tracking and improving the following items: • Department overtime; • Sick Time hours used by employees; • Workers compensation claims; and • Liability claims. • Constructed a liquefied natural gas (LNG)and compressed natural gas (CNG)fueling station; • Focusing resources on route efficiencies, accuracy of account information, and establishing improved enforcement of the Division's policies and procedures related to waste collection; and • Revising the City's Refuse and Solid Waste Division Code. At the same time, the Division is facing several longer term issues: • Arranging for disposal of approximately 200,000 tons of solid waste currently disposed at the Colton Landfill after December 31, 2012, when the San Bernardino County Waste Delivery Agreement (WDA)expires. • Providing for all temporary bin services after the expiration of the agreements with the two franchise waste haulers that compete with the City for temporary bin services; IZ5 Page 1 City of San Bernardino 5 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street Sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino • Addressing the need for customer rate increases or restructuring, given W M that customer rates have not been increased in four years; Business • Addressing recommendations contained in the March of 2007, a City-wide Organizational Review: Plan o Preparing detailed business plan and rate study; • Identifying enterprise costs and potential cost savings of contracting out; and • Preparing bid specifications for residential and commercial services, and conducting a managed competition process. To address these current and future challenges, the City retained R3 Consulting Inc. (R3) to prepare a Business Plan that addresses five major areas: 1) rate structures, 2) equipment needs, 3) staffing levels, 4) long range planning, and 5) the impact of managed competition. 2.0 Approach The Business Plan is intended to present a 5-Year work plan to guide the Division in its efforts to deliver high quality services in a cost-effective manner and to successfully compete with comparable utilities, both publicly and privately operated, in terms of efficiency, productivity, customer service and customer rates, and net financial impact on the City. Our study involved a review of the Division's collection operations and support functions. As part of that review, we met with management, reviewed operational information including productivity and vehicle availability data, observed collection activities in the field, conducted residential route time and motion analyses, audited commercial accounts, and performed an analysis of current and projected residential solid waste collection productivity. While our review covered a range of issues, it was not intended to be a detailed review of any of those specific issues, and we relied in part on management's representations of the Division's operations and results in developing our findings and recommendations. 3.0 Limitations In determining if further action on our recommendations is warranted, the City should consider the following limitations of our review: a A comprehensive management review of the City's solid waste operations was not conducted; a Field observations were limited to three days; Page 2 City of San Bernardino 6 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street Sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino • A detailed financial analysis and/or cost-of-service study of the City's solid I WM waste operations was not performed; • R3 was not able to independently verify the customer account data, off Business route travel time, and container set-out data provided by the City; Plan • The projections used in this analysis are based on limited operational and financial data received from the City. Because events and circumstances may not occur as expected, there will usually be differences between projected and actual results, and those differences may be material. 4.0 Findings and Recommendations Our review of the Division's operations identified a number of management and operational issues that impact the Division's ability to provide consistent high quality solid waste collection services to the City's residents and businesses. There is a combination of system and operational changes that will need to be addressed by the Division to maintain ongoing operations. The major findings and recommendations to address these issues are listed below. 4.1 Findings The findings fall in three (3) major areas: 1. The Division operates as a "garbage' collection department with the diversion of material through collection of recyclables and green waste as a secondary function. a. Total residential, commercial, and C&D recycling diversion is 6.6% of collected material. b. Total residential, commercial, and C&D green waste diversion is 12.0% of collected material. c. Contamination of recyclables is between 40 - 50% of collected material. d. The Division has the potential to reduce annual cost through reductions in equipment, staffing adjustments, and technology improvements. e. The Division can realize additional revenue through expanded recycling programs, decreased recycling contamination, and increased recovery of materials now lost in landfill loads. 2. The Division does not have proper management systems in place to accurately identify service levels and bill customers, timely implement service changes, and proactively manage its operations. a. The Division can not provide an accurate accounting of current customers and service levels. Z5 Page 3 City of San Bernardino 7 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street Sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino b. The Division's customer service and billing system is not tied to lWM daily operations, service and billing changes are done on a '.paper" basis with limited ability to confirm if changes were made, Business service inquiries are not tracked and tied back to route operations. Plan c. Without an inventory of bins, carts and containers the Division cannot manage its equipment properly; and the billing system cannot accurately bill for actual service. d. Routes are unbalanced, with the number of stops/route/day ranging from 800 to 1,400, and no accurate tracking of accounts and service levels. e. Approximately 30% of residential and commercial vehicles deliver loads that are over 11 tons and potentially over the legal street limit. f. Onboard truck scale systems and onboard vehicle tracking systems (GPS)are not used to monitor daily operations. 3. The Division is significantly underfunded, in terms of capital replacement, operating reserves, and operating revenue for residential cart services. a. The Division has no capital or operating reserves. b. The Division needs capital expenditures of approximately $21 million over the next five years to replace old equipment and bring the Division up to service levels seen by other municipal or privately run solid waste operations. c. Residential cart services is running a deficit of approximately $3.4 million/year. d. It is unclear if temporary services is covering its costs due to inaccurate revenue and operations tracking. e. There is no established procedure to collect delinquent account payment, and budgeted revenues do not reflect delinquency experience. The Division does not use property tax liens for delinquent payment collection. 4.2 Recommendations There are recommendations that the City of San Bernardino should consider that will result in improving the operational and financial environment of the Division. The recommendations are broken down by the following areas: Expenditure and Revenue Accounting; Customer Service; General Operations; Residential Services; Page 4 City of San Bernardino 8 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street Sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino • Commercial Services; I WM • Temporary Services; Business • FY 2008/09 Budgets and Rates; and Plan • Privatization/Managed Competition. Exoenditure and Revenue Accounting The Division should consider the following steps to improve the expenditures and revenue accounting: 1. Establish all budgets on a Line-of-Business basis (LOB) - 1) residential, 2) commercial, 3) temporary services, 4) street sweeping. 5)City Services. 2. Account for all revenue and expenses on a LOB basis. 3. Account for lease payments, capital purchases and capital reserve amounts on separate line items by LOB. 4. Record tip fees by function (disposal, green waste, recycling, C&D). 5. Establish a capital acquisition reserve account of 10% for planned future needs. 6. Establish an operating reserve account of 10% for unanticipated operating changes. 7. Adopt rate structures to generate revenue and cover expenses for each LOB. 8. Audit 100% of residential, commercial, and on-call accounts to verify/identify service levels. 9. Accept over the phone or on-line credit /debit card payments, and automatic payments. 10. Require advance payment for temporary drop boxes via the CSRs (no payment to drivers). 11. Establish a debt collection procedure, including tax liens for delinquent accounts. Customer Service The Division should consider the following steps to improve the overall accuracy and efficiency of the Customer Information Service system: 1. Purchase an integrated Customer Information System (software and hardware) for the Residential, Commercial, and Temporary services that would handle the following: a. Account management; Page 5 City of San Bernardino 9 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street Sweeping Services City of San Bernardino ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 IWM b. Billing; c. Routing; Business d. Dispatching; and Plan e. Reporting. A sample list of companies that offer"off-the-shelf" solid waste software systems include RouteWare, Soft-Pak, Trux, EnCore, Waste Works and Desert Micro. 2. Establish separate Customer Service Representatives (CSR) teams to handle residential customers separately from Commercial and Temporary Customers. 3. Hire one (1) additional CSR to reduce the number of customers to CRSs to a ratio of 6,000:1 4. Hire two (2) Commercial Account Supervisor that will be responsible for all commercial accounts. 5. Establish a procedure to formally track all calls and service requests. 6. Hire Dispatchers (a.m. and p.m.)that receives and coordinates all Roll-off and Commercial service request orders (SROs). 7. Implement a "ride along" program for CRS to observe on-route operations. 8. Introduce real-time GIS/GPS vehicle monitoring, interfaced with radio frequency identification in all new bins, containers, and carts. General Operations 1. Establish Best Management target productivity metrics: a. Residential 700 - 800 accounts per day (23 — 27 seconds per stop); b. Commercial 80- 100 lifts per day; c. Temporary bin services 17-20 pulls per day; d. Temporary roll-off services 8 - 10 pulls per day; e. Bin or roll-off drop/pull within one (1) business day; f. 30 seconds wait time on customer calls; g. Call by 3:00 pm for the same day correction of missed collections; h. Closing work orders within two days (container repair or replacement, billing error, property damage); and I23i. A maximum 2%delinquent accounts; Page 6 City of San Bernardino 10 of 38 October 2012 Request for Proposals for Residential&Commercial Solid Waste,Recyable Materials,Organic materials,&Street Sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino 2. Establish diversion standards lWM a. Residential recyclables diversion of 30% of total residential waste Business stream; b. Residential green waste diversion of 40% of total residential waste Plan stream; c. Commercial recyclables diversion of 30% of total commercial waste stream; and d. C&D diversion of 50% of the C&D waste stream (temporary services). 3. Supervisors and drivers should review and monitor all current routes to determine maximum load points and eliminate vehicle overweight's. 4. Current accurate sequenced route sheets and maps are needed, with all new stops verified. 5. All trucks that currently have "on-board scales" should be calibrated and operational. 6. All drivers should be trained in the operation of the "on-board-scales" 7. Establish and enforce a formal overweight policy. 8. All driver paper work, dump tickets, and SRO's should be reviewed with the drivers at the end of the day by the assigned supervisor or dispatcher. 9. Reconcile all driver tickets with tip fee tickets on a daily basis. 10. Unaccounted or lost tickets should be"recovered"the following day. 11. Overweight loads should be documented daily by the supervisor and driver to determine the cause and method of prevention. 12. Implement on-board scale house readers. Residential Services The residential operations will benefit immediately from the better balancing routes, emphasizing recycling and green waste services, and the use of a new software system. The Division should take the following actions: 1. Purchase and install GPS software and tracking devises for all residential collection vehicles. This should be directly tied to an integrated Customer Information System. 2. Audit all residential accounts to verify account information, and reconciled to accurate route sheets. 3. Re-balanced residential routes based on 8 hour work day, 5 days of collection and with established productivity requirements, and evenly IZ5 Page 7 City of San Bernardino 11 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street Sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino balanced between garbage, recycling and green waste collection (650 - I W M 800 accounts/route). Business 4. Provide route books and daily route logs to drivers to verify account data and any requested changes. Plan 5. Reassign "Extra" commercial drivers to residential recycling and green waste routes. 6. Route residential routes to the closest disposal facility. 7. Reassign residential supervisors to be responsible for geographic areas rather than lines of business. 8. Drivers should be held accountable for overweight loads, missed collection, and driver caused damages. 9. Focus on reducing recyclables and green waste contamination through on-route "cart" checks, increased public education efforts, "tagging' contaminated carts, and pulling recycling and green waste carts from habitual offenders. a. The Division should consider conducting a recycling characterization study to determine contamination levels and evaluate opportunities for improvement. The characterization should include landfill loads as well as recycling loads, to determine extent of lost recyclable and green materials. b. The Division should consider renegotiating the current residential recycling processing agreement as contamination is reduced. 10. Increase outreach and education for the recycling and green waste programs, using social marketing techniques. 11. Provide continual training on collection techniques to reduce unintentional damage to carts. 12. Provide continual training on established procedures for issuing non- collection notices, Service Request Orders ("SRO"), completing their daily logs. 13. Reduce vehicle spare ratios to 15%. Commercial Services 1. Purchase and install GPS software and tracking devises for all commercial collection vehicles. 2. Enter all current customer information into new software system. Z5 3. Audit all commercial routes to verify account information, and reconciled with the customer account system. Page 8 City of San Bernardino 12 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street Sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino 4. Include a complete bin inventory assessment as part of the route audit, lWM with procedures established to assure ongoing accuracy. 5. Conduct commercial waste audits for all commercial accounts, identifying Business recycling and organics rich accounts. Priority should be given to the 20% Plan largest commercial accounts in the first year(up to 500 total). 6. Establish "select" commercial recycling and organics collection routes to accommodate high concentrations of recyclable and organics material. 7. Focus on reducing recyclables and green waste contamination through on-route "bin" checks, increased public education efforts, "tagging" contaminated bins, and pulling recycling bins from habitual offenders. 8. Coordinate drivers, supervisors, and transfer station personnel to work together to assure that select routes maintain high levels of diversion. 9. Rebalance commercial routes with specific productivity standards established, i. e., each route should be managed as a "profit center'. (80 — 120/lifts/route). 10. Minimize the number of two-man commercial routes and reassign the "extra"drivers to residential collection (est. 5-6 drivers). 11. Drivers should not collect overloaded bins, or from locations that require the driver to leave the truck to clear a path to the bin or place items in the bin prior to collection. 12.All bin enclosures should be inspected to ensure access and safety. 13. Develop new bin enclosure standards to assure adequate collection space for recycling, organics, and refuse; and to assure that new and remodeled commercial developments provide adequate collection space. 14.Target "clean" recycling loads, aggressively target contaminated recyclables for non collection, and conduct waste audits to increase commercial recycling. 15. Identify opportunities and arrange for commercial food composting. 16. Establish and enforce additional charges for rejected recycling loads. 17. Direct drivers not to collect contaminated commercial recycling bins. 18. Hold drivers accountable for overweight loads, missed collection, and driver caused damages. 19. Retrain drivers to follow established procedures on issuing non-collection notices, SROs, completing their daily logs. 20. Reduce vehicle spare ratios should 10%. ^5 Page 9 City of San Bernardino 13 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street Sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino Temporary Services lWM The temporary account operations will benefit immediately from the use of the Business new account supervisor, software system, and dispatcher. The Division should take the following actions: Plan 1. Purchase and install GPS software and tracking devises for all temporary collection vehicles (both roll-off and front loaders). 2. Require all customers requesting temporary services to the CSR's to request service. 3. Restrict Temporary Services to construction and demolition materials, and clean-ups. Temporary services should not be provided for regular scheduled collection of garbage. 4. Base Temporary Services on a one (1) week service period. One (1) additional week "bin' rental can be requested at a set fee. All temporary drops must be pulled weekly, unless the customer requests a one time one (1)week extra bin rental. 5. Track all activity by drivers by SROs and account number on a daily driver activity log. 6. Enter all temporary services into the new software system. 7. Audit all permanent accounts and accounts serviced on a short term (over seven days) and on-call basis by the Commercial Account Supervisor and Roll-off Supervisor to verify customer information, bins onsite, and identify diversion opportunities. Permanent scheduled accounts should be allocated on a regular route basis, so that temporary services do not conflict with permanent collections. 8. Establish a procedure for monitoring compactor loads with high concentrations of recycling and organics material, including a transfer station floor sort procedure and accounting. 9. Work with local recycling facilities to receive additional material that current drivers or supervisors think are "contaminated" and must go to the landfill. 10. Require the Roll-off supervisor and/or Commercial Account Supervisor to review any loads dispatched as "recycling" loads that the driver feels are contaminated before the material is hauled to the landfill. 11. Reduce vehicle spare ratios to 10%. 123 Page 10 City of San Bernardino 14 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street Sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino FY 2008/09 Budgets and Customer Rates l W M 1. The FY 2008/09 budget should incorporate the cost to purchase and Business install an Integrated Customer Information and Billing System (ICSBS), including: Plan a. The cost to complete the residential and commercial customer account audits, including identification of select recycling and organics accounts. b. Software for account management, billing routing; dispatching, and reporting. c. Collection vehicle on-board GPS route and account tracking. 2. The FY 2008/09 budget should incorporate capital replacement for: c. Residential containers, in full 3-color imprinted with "recycling", "organics" and 'refuse" identification and descriptions. d. Residential collection vehicles. e. Commercial containers. f. Commercial collection vehicles. g. Temporary collection vehicles. h. Street sweepers. 3. The FY 2008/09 budget should incorporate a 5% capital reserve and increase to 10% by FY 2013/14. 4. The FY 2008/09 budget should incorporate a 5% operating reserve and increase to 10% by FY 2013/14. 5. The 2008/09 budget should incorporate the cost to begin a feasibility study for Corporation Yard/MRF(Transfer Station. 6. The 2008/09 budget should incorporate the cost to implement aggressive public outreach programs and enforcement. 7. The 2008/09 budget should incorporate the cost to conduct a detailed cost of service study to establish accurate rates on LOB starting in FY 2009/10. 8. Customers Rates should be revised to: a. Incorporate items 1 —7 above. b. Discontinue bin/box rental beyond 1 week. c. Adopt "flat"tonnage limits of 2 tons for temporary bins. d. Adopt "free" recycling for residential and commercial IZ5 customers. Page 11 City of San Bernardino 15 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street Sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino e. Reassign five "extra" commercial drivers to residential I W M services. Business f. Hire two (2) outside sales representatives (commercial and temporary services). Plan g. Discount commercial green waste by 50% from standard garbage bin rates. h. Charge full garbage rates for contaminated recycling or green waste loads. i. Implement separate street sweeping charges on residential and commercial customers. j. Increase rates for residential, commercial, and temporary services on an "across the board" basis for Y 2008/09. 9. For FY 2009/10 and beyond: a. Adopt "pay-as-you-throw" rates for residential and commercial customers to provide incentives for recycling. b. Transition to full LOB rates. Privatization/Mana-ged Competition R3 does not believe it is in the City's best interest to consider privatization of the Division functions at this time for the following reasons: 1. It is not possible to accurately determine costs, revenue, number of accounts, billing errors by LOB and any private hauling company would want an accurate accounting to customer levels to determine a reasonable "value"of the contract. 2. The City would need to receive approximately $4.7 — $6.0 Million in annual franchise fee payments to account for lost revenue to the General Fund, Water, and Fleet Services, and to provide for Street Sweeping Services: a. Currently the City provides approximately $400,000 in "free" City Services that is not accounted for or tracked in the Division budget. b. Currently, approximately $2.7 million is transferred from Division to the City General Fund. c. Currently the direct cost of providing Street Sweeping services is approximately $1.6 million/year (including capital and operating reserves). IZ5 d. Currently the Division pays approximately $90,000 to the Water Department for billing services. The cost for Water Page 12 City of San Bernardino 16 of 38 Request for Proposals for Residential&commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street Sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino billing approximately 39,500 solid waste accounts that I V V IVI receive City water services would not be eliminated. e. Currently the Division pays approximately $1.8 million to Business Fleet Services for vehicle maintenance (excludes fuel). Plan Some, but not all of this cost would be eliminated. 3. The City's rolling stock has little or no value: a. Of the City's fleet of 98 vehicles, 19 are less than 2 years old; most are over 5 years old, are not CARB compliant and have minimal or no market value. b. Residential carts have no market value due to age and condition and will need to be replaced. c. The City's commercial bins have low market value due to age and condition, and bins that have not been replaced or refurbished will need to be replaced or refurbished. d. The City's roll-off containers have little or no market value due to age and condition and will need to be replaced'. 4. A private hauler would likely have to increase the City's current customer rates: a. Similar to the City, a private hauler will need to capitalize containers and vehicles at an estimated cost of$25 million. b. Similar to the City, a private hauler will need to conduct a billing audit of all accounts and implement a new Customer Information System. c. A private hauler would likely incorporate up-front cash payments to the City into its customer rates. d. A private hauler would need to make annual franchise fee payments to the City as discussed in No. 3 above. e. A private hauler would need to operate on a 10+% operating ratio to meet corporate profit requirements. 'The City has begun a program to refurbish existing commercial bins and is targeting IZ5 approximately 100 per month to be refurbished. Page 13 City of San Bernardino 17 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street Sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino IWM 5.0 Financial Plan Business 5.1 Budget Projections Plan R3 developed financial model for a 5-Year Financial Plan on a Line of Business basis as follows: 1. Residential Cart Services. 2. Commercial Bin and Roll-off Services (regular accounts serviced on a set schedule). 3. Temporary Bin and Temporary Roll-Off Services. 4. Street Sweeping Services. The model incorporates the City's FY 2007/08 budget, the Division's projected capital and operating needs, the operational recommendations discussed above, operating and financial practices used by other public agencies, and discussions with City staff. Changes to the capital requirements and new staff requirements for FY 08/09 — FY 12/13 are listed in Tables 1 and 2 below. Table 3 shows the additional one time costs for implementing the recommendations in FY 2008/09. Table 1 Projected Capital Needs For FY 08/09— FY 12/13 Commercial Vehicle Replacement $3,847,000 Residential Vehicle Replacement $8,781,197 Street Sweeper Vehicle Replacement $789,000 Residential Carts $6,987,090 Commercial & Roll-off Containers $2,10,000 Integrated Customer Service/Billing/Route Management System $1,075,00 TOTAL CAPITAL NEEDS $20,415,364 123 Page 14 City of San Bernardino 18 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Matenals,Organic Materials,&Street Sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino Table 2 I WM Cost for Additional Staff For FY 08109 Business Cost (with Annual Plan Position No. Benefits) Cost Residential Drivers 5 $51,600 $258,000 Residential Supervisor 1 $74,500 $74,500 Public Education Staff 2 $56,100 $112,200 Customer Service 1 $47,500 $47,500 Residential Dispatch 1 $51,600 $51,600 Commercial Regular Drivers -5 $51,600 -$258,000 Commercial Regular Supervisors 1 $74,500 $74,500 Commercial Regular Public Education Staff 1 $56,100 $56,100 Commercial Regular Account Supervisors 2 $50,400 $100,800 Commercial Regular Dispatch 1 $51,600 $51,600 TOTAL ADDITIONAL STAFF 10 $568,800 Table 3 Cost of Implementing Recommendations FY 08/09 Ongoing/One Cost Time Training On New Customer Service System $25,000 One time City Clean-up Services $400,000 Ongoing Public Education Campaign/Materials $300,000 Ongoing City-wide Billing Audit $199,750 One time City-wide Reroute $100,000 One time 1_ Page 15 City of San Bernardino 19 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street Sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino Table 3 IWIVI Cost of Implementing Recommendations Business FY 08/09 Ongoing/One Plan Cost Time Cost of Service Study $100,000 One time MRF/Transfer Station Feasibility $150,000 $500,000 over next 4 years Capital Reserve-Initially set at 5% $1,125,214 Increase to 10% over 5-year period Operating Reserve-Initially set at 5% $1,164,662 Increase to 10% over 5-year period Table 4 below shows the projected impact of adopting the above recommendations, including the projected rate increases. Table 4 Projected Costs, Revenue and Rate Increases For FY 08/09 — FY 12/13 Cumulative Budgeted _ Prclected Net Income Revenue Ad ustmem Pe 07-08 08-09 0910 1041 11-12 12-13 Loss ircmtace Residential 0. 21. % .00° % 3.00° Commercial-Regula 0.00% 21.00% 3.00% 3.OD% 300% 3.00% Commercial-Temporary 0.00% 21.00% 3.00% 3.00% 300% 3.00%r I -Comnercol-Regular Revenue&Transfers In 10,398,233 12,577,594 12,954,922 13,343,570 13,743,877 14,156,194 Denses&Transfers Out 8,416.974 9,239,034 9,019,018 9,536,857 10,596,574 11,058,232 Net Income/ Loss 1,981,259 3,338,560 3,935,904 3,806,713 3,147,303 1 3,097961 17,316,441 Commercia4Terrporay Revenue&Transfersln 4,202,867 5,082,606 5,235,084 5,392,137 5,553,901 5,720,518 ,102n ses&Transfers Out 3,682,426 4,308,411 4,206,395 4,440,766 4,912444 5.122,713 Income/ (Loss) 774,195 1,028,690 951,371 641,457 597,805 3,993,518 Street Sweeping Revenue&Transfers In 4,946 1,673,519 1,723,725 1,775,436 1,828699 1,883,560 E enses&Transfers Out 1,439,363 1,770,516 1,602,223 1,722,485 1 979697 2,030,171 Net Income/ Loss 1,434,417 96,997 121,501 52,951 15Q99 146,611 220,153 Total All Unes of Service Beginning Fund Balance 589,200 2,200 92,516 1,972,482 3,838865 3,029,014 Revenue&Transfers In 24,749,700 31,611,150 32,567,367 33,552,913 34,568720 35,615,752 E enses&Transfers Out 25,341,100 31,701,466 30,502,370 31,686,529 35,378571 36,735,104 Net Income/ Loss 591,400 90,316 2,064,997 1,866,383 809,851 1,119,353 1,911,861 Page 16 City of San Bernardino 20 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street Sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino As can be seen by Table 4 above, for FY 2007/08 the City will need to increase 11NIVI residential, commercial, and temporary rates by 21.0%, adopt 3% annual CPI increases, and adopt a new street sweeping rates of $1.69 per residential Business account/month, and $13.53 per commercial account/month. The result of the rate increases and new street sweeping rates will provide the Division with the Plan necessary funding to improve services to a level provided by other publicly run solid waste operations and effectively compete with private waste haulers. However, rate increases in FY 2008/09 are "across the board" increases and 3% do not move the Division to LOB based rates. This "across the board" approach is recommended for the following primary reasons: • Avoid a one time residential rate increase of 61.5%. • Avoid a one time commercial rate decrease of 12.0%. • Allow the Division to conduct a detailed cost of service study. • Complete the customer service level audits. • Track revenue and expenses by LOB (commercial and temporary services) and to adopt residential variable container size rates. • Incorporate disposal cost reductions and increased recyclables revenue from increased residential and commercial recycling. • Incorporate operational efficiencies due to more efficient routing, and more accurate customer billing. Also, as can be seen in Table 4 above, residential services will run a cumulative 5-year deficit of approximately $19 million unless additional rate increases are adopted. Accordingly, R3 recommends the Division should phase in residential rates on a LOB basis over a three (3) year period in conjunction with the customer service audit, cart replacement program, and adoption of variable rates. 5.2 Example FY 2008/09 Rates The following table provides a list of rates if the Division adopts the recommended rate increases: Table 5 Example FY 2008/09 Monthly Rates Category FY 2007/08 Rate FY 2008/09 Rate Residential 96 Gallon Trash $19.86 $24.03 Residential Street Sweeping -0- $1.69 Commercial - 1 Yard -(1 x weekly) $95.00 $114.95 [Z.5 Page 17 City of San Bernardino 21 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street Sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino Table 5 I WM Example FY 2008/09 Monthly Rates Business Category FY 2007/08 Rate FY 2008/09 Rate Plan Commercial— 3 Yard -(1 x weekly) $101.00 $122.21 Commercial—6 Yard -(1 x weekly) $161.00 $194.81 Commercial Street Sweeping -0- $13.53 Temporary Per Pull $284.00 $343.64 5.3 Potential Revenue Enhancements and Cost Reductions Assuming the Division successfully implements the recommendations discussed earlier in this Business Plan, the Division should realize both cost savings and revenue enhancements. These are presented below: Table 6 Cost Decreases and Revenue Increases From Implementing Recommendations Cost Revenue Decreases Increases Reducing Vehicle Reserve Ratio (16 Not vehicles at$25,000 vehicle for insurance, ($400,000) determined registration, maintenance costs) Reducing Bad Debt(target 2%) $164,000 Increase residential and commercial revenue 0 0 from billing corrections Increase Residential Recycling Tonnages $1,815,000 (target of 30%of residential waste stream) 0 Decrease Residential Tonnage Disposal due to Increased Recycling ($700,000) 0 Z5 Page 18 City of San Bernardino 22 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street Sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino Table 6 lWM Cost Decreases and Revenue Increases From Implementing BUSIneSS Recommendations Cost Revenue Plan Decreases Increases Increase Residential Green Waste Tonnages 0 (target of 40% of residential waste stream) 0 Increase Commercial Recycling Tonnages $1,160,00 (target 30% of commercial waste stream) 0 Decrease Commercial Tonnage Disposal ($1,826,000) 0 TOTALS ($2,426,000) $3,079,000 5.4 Financial Model Assumptions A significant number of assumptions were incorporated into the financial model: • Annual growth of 3%. • Assumed annual operating cost increases of 3% (salaries, benefits, tip fees, etc). • Interest rate of 6.0%. • Cart and bin depreciation over 10 years. • Collection vehicle depreciation over 7 years. • Retire all payments for lease-purchased vehicles at the end of FY 2013/14. • Debt finance new purchases of vehicles and containers. • FY 2008/09 one time cost of $450,000 for moving Division staff to the corporation yard. • $25 million capital cost for a new Corporation Yard/Material Recovery Facility/Transfer Station beginning in FY 2012/13. • No revenue increases or operating cost decreases due to improved recyclables and green waste diversion. In order to develop the model on a LOB basis, it was necessary to reassign and allocate FY 2007/08 expenditures and revenue categories to specific LOBS as follows: Z5 Page 19 City of San Bernardino 23 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street Sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino IWM Table 7 Business Line Of Business (LOB) Allocation Factors Plan Item/ Commercial Street Method Residential -Regular Temporary Sweeping Revenue: Interest on Cash 50.0% 50.00% 0.00% 0.00% Commercial May be using Rubbish cart collection. 0.00% 100.00% 0.00% 0.00% Commercial Bin 0.00% 0.00% 100.00% 0.00% Rent Permanent& Commercial Bin commercial 00% ° 10.7/0° 0.0% ° Service bin accounts 89.3/° 3-6 CY bins. Temp services Commercial (bin and roll- 0.0% 0.00% 100.0% 0.0% Special off)$1M is roll- Off. Res Water Billed 100.0% 0.00% 0.0% 0.0% Residential B Accts 100.0% 0.00% 0.0% 0.0% Roll-off Dino Bin Service includes roll- 0.0% 38.9% 61.1% 0.0% off perm. Commercial Penalties 0.0% 100.0% 0.0% 0.0% Residential 100.0% 0.0% 0.0% 0.0% Penalties Compliance tickets, Misc. Receipts inspector 50.0% 50.0% ° P citations,state 0.0% 0.0% funding, rants. Revenue from Recycling Receipts curbside, DOC 100.0% 0.0% 0.0% 0.0% Y 9 P 100% Residential Expenditures Administration By drivers 42.4% 34.8% 15.2% 7.6% Automated Residential All residential 100.0% 0.0% 0.0% 0.0% By drivers Subscription within com 0.0% 69.6% 30.4% 0.0% Services perm-temp split Street Sweeping All Street 0.0% 0.0% 0.0% 100.0% weeping Recycling 1 g drivers 42.4% o ° Environmental y 34.8/0 15.2/0 7.6% Billing System By drivers 83.0% 5.00% 5.00% 7.00% Corporation Yard On accounts 42.39% 34.8% 15.2% 7.1% Page 20 City of San Bernardino 24 of 38 Request for Proposals for Residential 8 Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,8 Street Sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino IWM Table 7 Business Line Of Business (LOB) Allocation Factors Plan Item/ Commercial Street Method Residential -Regular Temporary Sweeping Commercial By drivers Equipment within com 0.0% 69.6% 30.4% 0.0% Allocation perm-temp split Transfers By drivers 42.4% 34.8% 15.2% 7.6% 6.0 Example Implementation Steps 1. Billing System Year 1 Problem: The current customer service and billing systems (H.T.E.) does not have the ability accurately identify customer accounts, service levels, or rates charged to customers. The lack of accurate customer information greatly reduces the ability of the Division to identify cost and revenue requirements for all customers and department functions. The current H.T.E. system does not have the ability to track and bill all customers for services provided by the Division; • The Division must manually enter commercial and roll-off information to update billing at the end of the month; • H.T.E. does not have the ability to generate route sheets or management reports to assist staff with daily operations; • The current system relies heavily on handwritten notes, faxed work orders, or phone calls directly to drivers or supervisors; • Work orders are not issued for all service requests; and • There is not a system in place to track and all close work orders. Year 1 The Division should procure and install an industry standard 'off-the-shelf Integrated Customer Service and Billing System (ICSBS). A sample list of Z5 Page 21 City of San Bernardino 25 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino companies that offer 'off-the-shelf" solid waste software systems include lWM Routeware, Soft-Pak, Trux, EnCore, Waste Works and Desert Micro. Business The Division should consolidate all billing and customer service functions into Plan one system that has the ability to do the following functions: • Identify all customers by service type, level of service, and rates charged; • Identify all customer calls and requests; • Processing billing and accounting functions; • Identify customers by day and routes; • Track container usage and inventory; and • Provide management reports. Year 2 • Begin full use of new Integrated Customer Service and Billing Systems (ICSBS)for all customer and billing activity; and • Implement new variable can rate structure for residential customers. Year 3 —Year 5 During Year 3, the IWD should begin the process of conducting annual compliance audits of customers to verify billing and routing information. Begin annual compliance audits of 20 percent of all commercial and residential customers. Compliance Audits should include confirmation of the following: • Address; • Container size; • Service level/frequency; and • Confirm correct rate. 2. Finance and Accounting Problem: The current financial and accounting system tracks costs by five section codes, (411- Administration, 412- Automated Residential Collection, 413 - Subscription Refuse, 414, Street Sweeping, and 415 - Recycling/Environmental). Revenue is tracked by two section codes (412 - Automated Residential Collection, and 413 - Subscription Refuse). This caused a "disconnect' between cost and revenue IZ5 tracking, and does not accurately reflect the costs associated with the services provided by the Division. Page 22 City of San Bernardino 26 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street Sweeping Services • r ATTACHMENT 8-IWMO BUSINESS PLAN MAY 2008 City of San Bernardino Year 1 I W M • Conduct a cost of service analysis by Line Of Business (LOB) to Business determine costs that can be used to determine future rate increases; • Expand the current accounting systems to track costs and revenue by the Plan following LOBS and functions: • Residential • Solid Waste Collection • Residential Collection • Green Waste Collection • Commercial • Solid Waste Collection • Recycling Collection • Temporary Bin Collection • Roll-off • Permanent Collection Accounts • Temporary Collection Accounts • Street Sweeping • Residential • Commercial • Revise the current procedure for Permanent and Temporary Roll-off accounts to: • Define permanent accounts as customer with regularly scheduled service or with established bin rental charges and minimum collection frequencies established; • Establish rates that include a fixed hauling charge and a pass- through of actual tipping fees; • Eliminate the use of"temporary 90-day roll-off boxes"; and • Establish all Temporary accounts to have weekly collection that is paid in advance. Year 2 • Adopt new rate structure to cover costs by LOB (may be necessary to phase in residential rates over three years); • Establish new commercial rates to "include" recycling to provide an incentive for commercial businesses to recycle and divert material. �� • Begin tracking costs and revenue by LOB; and Page 23 City of San Bernardino 27 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street Sweeping Services • ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino IWM • Adopt new residential "variable can rate'; Business Year 3 Plan Implement variable rate system for all residential customers. Year 4 • Conduct a cost of service analysis by LOB to determine costs that can be used to determine future rate increases; 3. Collection Operations Problem: Current collection operations is under staffed with the current number of supervisors that cover several functions. This understaffing and cross utilization reduces the amount of time the supervisors have to monitor the quality of service provided and limits their ability to improve performance and reduce costs. Management and customer service functions do not have the ability to effectively monitor route operations productivity or collection efficiencies. The current collection and routing system has resulted in overweight vehicles that deliver overweight loads in excess of 30 percent of the total loads delivered to the landfill. The potential financial issues related to overweight vehicles may include excessive wear and reduced life span of vehicles, excessive road wear, and potential financial penalties by local enforcement offices. Year 1 • Hire two(2) Collection Route Dispatchers to: • Assist supervisors monitor daily routes; • Communicate and schedule customer service request; and • Check-in drivers at the end of the day to ensure the completeness of daily activity. • Procure, install, and activate GPS units with "real-time" monitoring of vehicles that tie to ICSBS system; • Adopt a formal "overweight" policy program to identify and eliminate overweight vehicles; and • Adopt and implement a daily "check-in" program with the drivers and Dispatcher. 123 Page 24 City of San Bernardino 28 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street Sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino Year 2 I WM • Develop a monitoring program to record and improve customer service Business and route operations through daily use of GPS systems; Plan • Establish benchmark system to track customer service calls and route performance; • Include Radio Frequency Identification (RFID)on all new collection carts and bins; • Install RFID systems on all new collection vehicles; and • Establish procedure to monitor and balance routes to eliminate overweight loads. Year 3 —Year 5 • Use GPS and monitoring system to establish goals to improve customer service and improve route efficiencies; and • Install RFID systems on all existing collection vehicles. 4. Commercial Accounts Problem: The current commercial collection system has several areas that can show significant improvement and result in positive financial returns to the Division. The current commercial collection system does not have the ability to accurately identify commercial customers by day, route, or service levels. The current routing system allows for frequent overweight vehicles and drivers to collect from customers that are paying for lower service levels. The Division does not have an established routing or billing audit system in place to monitor routing performance and customer service levels. The current Commercial Recycling Collection program has approximately 200 customers that are collected by routes that operate five (5) days per week. Due to random contamination, drivers will determine entire loads are contaminated, resulting in loads of contaminated recyclables that end up delivered directly to the landfill. Year 1 • Audit 100% of current commercial accounts to document the following: • Service location; • Container size and bin number; • Days of service; • Customer specific issues (locks, dismount, 2 staff person service, �� etc.); and Page 25 City of San Bernardino 29 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street Sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino o Opportunities to increase diversion. I WM • Identify current size of commercial routes; Business • Present options to re-balance routes to increase efficiency; • Re-route commercial accounts to reduce the number of two-man Plan collection routes by five (5); • Design routes with sequenced stops; • Implement container inventory tracking system through ICSBS; • Conduct a waste audit of top 500 generators; • "Re-introduce" Commercial Recycling Collection; • Meet with local recyclers to evaluate additional processing capabilities to increase recycling diversion; and • Replace 20% of commercial bins. Year 2 • Implement new ICSBS; • Re-route commercial accounts; • Reduce two-staff person routes to four (4) routes per day; • Expand commercial recycling to new bundled rates; • Identify and implement the collection of select commercial loads; • Develop commercial organics collection program; • Begin to conduct waste audits on top 20%of the largest generators; and • Replace 20% of commercial bins. Year 3 —Year 5 • Implement commercial organics collection program; • Continue waste audits on 20%of the largest generators; • Begin annual compliance billing audits on 20%of all commercial customers; • Replace 20% of commercial bins (each year); • Establish procedure to monitor facility diversion of select commercial loads, C&D material, and bulky waste material; and • Continue to expand commercial recycling and select load collection programs. Z5 Page 26 City of San Bernardino 30 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street Sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino 5. Roll-off Accounts IWM Problem: The current roll-off system has several accepted practices that Business provide service to customers not typically found in private sector roll-off operations. The system does not have systems in place to Plan accurately identify the quantity or location of containers. "Temporary" customers have the ability to use a roll-off bin for up to 90 days while generating only one (1) revenue producing load for the Division. The current system of charging for weight, while typical for permanent accounts, is burdensome for temporary bin accounts. Additionally, with permanent accounts, the overweight limits and charges should be reviewed to reduce the administrative burden and increase the penalty for overloading the bins. Roll-off and Construction and Demolition diversion has the potential to generate a high amount of diversion with the proper outreach to customers. Currently, opportunities for diversion are missed due to quality standards accepted at local recycling and C&D facilities. Year 1 • Audit 100% of Roll-off accounts; • Conduct bin inventory; • Implement bin inventory tracking system; • Negotiate material quality standards with local Recycling and C&D facilities; • Evaluate and establish permanent roll-off routes; • Conduct waste audit of top 50 generators; • Adopt new permanent and temporary roll-off customer policy; and • Conduct site visits with all new permanent or temporary C&D customers. Year 2 • Evaluate and establish permanent roll-off routes; • Conduct waste audit of top 51-100 generators; and • Implement new permanent and temporary roll-off customer policy. Year 3 • Conduct waste audit of top 101-150 generators. Year 4 • Conduct waste audit of top 50 generators. ^5 Page 27 City of San Bernardino 31 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street Sweeping Services City of San Bernardino ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 Year 5 l WM ■ Conduct waste audit of top 51-100 generators. Business Plan 6. Residential Accounts Problem: The current residential system operates four (4) days per week with unbalanced routes and lacks basic routing information including customer service level information or sequenced route maps. Year 1 • Audit 100% of Residential accounts; • Evaluate current route time saving options; and • Implement new customer start-up program with new bins and recycling outreach; • Replace 33% of solid waste carts; • Replace 33% of recycling carts; • Replace 33% of green waste carts; and • Begin re-route residential collection routes to five (5) day collection schedules (Mon-Fri) routes. Year 2 • Replace 33% of solid waste carts; • Replace 33% of recycling carts; • Replace 33% of green waste carts; and • Complete re-route residential collection routes to five (5) day collection schedules (Mon-Fri) routes. Year 3 • Begin annual compliance billing audits of 20% of all residential customers; • Replace 33% of solid waste carts; • Replace 33% of recycling carts; and • Replace 33% of green waste carts. Year 4— Year 5 • Continue annual compliance billing audits of 20% of all residential customers. 1�3 Page 28 City of San Bernardino 32 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,S Street Sweeping Services City of San Bernardino ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 7. Customer Service IWM Problem: The current Customer Service Department is limited by the H.T.E. Business system. The current system relies heavily on hand-written notes, Plan faxed work orders, or phone calls directly to drivers or supervisors. Customer Service Representatives (CSRs) are burdened by a slow and inefficient system that does not allow them to effectively provide customer service and participate in the delivery of high quality customer service and expand recycling and diversion programs. Work orders are not issued for all service requests and there are no formal systems in place to track and close work orders. Year • Hire Commercial/Industrial Account Managers; • Hire Recycling Diversion Analysts; • Establish Residential and Commercial CSR teams; • Begin training CSRs on new ICSBS system; and • Implement CSR ride-along program for CSR's to observe on route activity. Year 2 • Implement new ICSBS system; • Implement new customer startup procedure for residential and commercial accounts including new bins and recycling outreach; and • Incorporate results of annual compliance audits. Year 3 - 5 • Incorporate results of annual compliance billing audits. 8. Public Education and Outreach Problem: The current Public Education and Outreach programs have not achieved the goals of increasing recycling activity while informing residents and businesses on the proper procedures for separating recyclables from the solid waste to maintain acceptable levels of contamination. Current contamination levels for the residential program are estimated to be above 40 percent. Commercial recyclables are contaminated on a regular basis that results in a majority of the material being landfilled. Z5 Page 29 City of San Bernardino 33 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street Sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino Year I V v�p�M • Develop and expand the Public Education and Outreach Programs to Business inform all residents and businesses the reasons to recycle and the proper methods; and Plan • Contract with a social marketing firm to: • Conduct phone surveys to identify method to improve the program; • Conduct focus groups to get community involvement in the programs; and • Develop and implement pilot programs to improve the collection programs. Year 2 • Begin annual site visits of top 20%of the largest commercial accounts without recycling; • Re-introduce residential recycling program; • Continue with social marketing surveys and focus groups; and • Introduce variable can rate to provide a financial incentive for customers to increase recycling. Year 3 • Implement Commercial Recycling Recognition Program; • Implement Residential Recycling Recognition Program; • Introduce special item collection programs; • Continue with social marketing surveys and focus groups; and • Continue with social marketing surveys and focus groups. Year 4 • Implement residential food waste collection program; and • Continue with social marketing surveys and focus groups. Year 5 • Evaluate and measure the progress made through improved Public Education and Outreach programs and social marketing surveys; and • Develop new five-year plan for Public Outreach and Education Program. 9. Disposal and Processing Facilities Problem: The Division's disposal and processing capacity will expire in 2012 when the Waste Disposal Agreement (WDA) with San Bernardino County, the Recyclable Processing Agreement with Burbank Page 30 City of San Bernardino 34 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street Sweeping Services • ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino Recycling Inc. (BRI), and the Green Waste Processing Agreement IWM with Republic Services expire. The City does not have facility options for the processing and Business diversion of material from select commercial loads, commercial plan organics, or the material collected from the bulky waste collection programs. Year 1 • Negotiate an extension of current disposal agreement with San Bernardino County; • Identify facility options to process commercial dry waste (mixed dry garbage and recyclables); • Identify facility options to process commercial food waste; and • Identify and arrange for facility(ies)to handle and process bulky waste collection material. Year 2 • Conduct a Corporation Yard/MRF/Transfer Station Study; • Enter into contract(s)for processing commercial dry waste and commercial food waste; and • Enter into processing agreement for the handling and diversion of bulky waste material. Year 3 • Implement action plan for long term Corp Yard/MRF/Disposal facility; and • Conduct material characterization per agreement with BRI. 10. Recycling Programs Problem: Current recycling programs are not achieving the goals of increasing and maintaining participation by residents and providing recyclables with acceptable levels of contamination (under 15%). The Division will need to develop and expand the current outreach programs and address these issues with all Division employees. Year 1 • Develop an expanded Outreach program for Residential and Commercial Recycling Program, using social marketing techniques; • Adopt a Cart and Bin Contamination Policy and Procedure; • Conduct driver training to monitor and tag carts and bins with unacceptable levels of contamination in the recyclables; Z5 Page 31 City of San Bernardino 35 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,&Street Sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino • Identify recycling-rich commercial accounts,for inclusion on source- •W M separated or select routing collection programs; • Develop new bin enclosure standards, assuring adequate collection Business space for recycling, organics, and refuse containers; and Plan • Assure that new and remodeled commercial developments provide adequate collection space for recycling, organics, and refuse containers. Year 2 • Conduct recyclables material characterization for residential and commercial recyclables per the agreement with BRI; • Begin tagging and enforcing contaminated bins through the new bin/cart contamination policy; • Begin delivery of new recycling carts with full color imprinted recycling information; • Expand commercial recycling collection; • Initiate routing and collection of select commercial accounts with high levels of recyclables; and • Continue social marketing surveys, focus groups, and outreach programs. Year 3 • Initiate process to develop, induce, or contract for long term facility options including disposal, transfer station and material processing facility; and • Continue social marketing surveys, focus groups, and outreach programs. Year 4 • Conduct recyclables material characterization for residential and commercial recyclables per the agreement with BRI; • Contract for transfer station and materials processing facility services; and • Initiate transfer station and materials processing facilities construction and expansion. Year 5 Conduct five(5)year review of Collection Operations and Recycling Programs. 11 . Bulky Waste Collection Programs Problem: The Division would like to provide bulky waste collection programs for all residential customers to help increase diversion, reduce the impact on the neighborhood clean up events, and reduce the impact on potential illegal dumping of material. Page 32 City of San Bernardino 36 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,8 Street Sweeping Services ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino Year 1 lWM • Design and plan bulky waste collection programs; BU$Ine$$ • Procure equipment for bulky waste collection; • Identify and adopt rates structure for bulky waste collection; and Plan • Notify public of new bulky waste collection. Year 2 • Implement on-call bulky waste collection program; and • Phase out neighborhood collection events. Year 3 • Expand bulky item collection program to include universal waste and household hazardous waste material as part of the bulky waste collection program. Page 33 City of San Bernardino 37 of 38 Request for Proposals for Residential 6 Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,8 Street Sweeping Services y I ATTACHMENT 8-IWMD BUSINESS PLAN MAY 2008 City of San Bernardino IWM This page intentionally left blank. Business Plan IZ5 Page 34 City of San Bernardino 38 of 38 Request for Proposals for Residential&Commercial October 2012 Solid Waste,Recyable Materials,Organic Materials,8 Street Sweeping Services RECEiVEO CITY CLEO (5) 2UI2 OCT 15 AM I1 15 CITY OF SAN BERNARDINO INTER-OFFICE MEMORANDUM TO: James F. Penman, City Attorney FROM: Richard D. Luczak, Deputy City Attorney DATE: October 12, 2011 RE: Summary of Changes to Mayor's RFP(10/11/12) Following is a summary of substantive changes to the Request for Proposals that exist in the Mayor's RFP provided to our office at approximately 3:30 p.m. on Thursday, October 11, 2012: 1. Page 1,the RFP prohibits the proposers from contacting City staff and elected officials under penalty of nullifying the proposal. 2. There is no longer a requirement that the City's territory be divided into two zones. Rather, Proposals will be for the entire City. 3. The new RFP allows two separate bids:a)a"Required Proposal"which is for a 7 year term and accounts for all services currently provided by the IWMD, including street sweeping, and seeks a single lump sum the City would be required to pay to the contractor for providing the services; and b) an"Alternative Proposal"for a 20 year term to include service changes and enhancements the proposer deems appropriate. 4. The term has changed from a 10 year period to a 7 year period or 20 year period.The 7 year period suggested in the new RFP does not appear to be correctly calculated and is listed as being from February 4, 2013 through December 31, 2019 (approximately 1 month short of the 7 year period, though this may simply be to end it at the end of the year). 5. As phrased,a proposermay submit an alternative proposal for a 20 yearperiod, and the City would have to provide 20 years notice to terminate. 6. In the original RFP, rates were to remain constant, though under the existing Rate Resolution,the rates would be adjusted pursuant to the change in CPI for this region,and the Mayor and Council could choose not to impose the rate increase by a simple majority vote. In the new RFP,rate adjustments will occur automatically at 80%of the CPI,with any landfill P:\LUCZAK\Memo re changes to RFP.wpd component adjusted according to actual cost, and processing fees will also be adjusted based on 80% of the CPI. There is no provision allowing the Mayor and Council to choose not to impose the increase. 7. The time line has changed from submissions being due in November 2012 and services to begin January 1, 2013 to submissions being due in mid-December 2012 and services to begin February 4, 2013. 8. While the RFP acknowledges that there are two existing franchise haulers who have many accounts,Page 9 ("Description of Services") is not entirely accurate. It states the City currently provides service to all residential accounts and most commercial accounts. Annexed areas of the City are serviced by existing franchisees (Cal and Burrtec), though the City may take over those services after 5 years pursuant to statute or when the franchises expire in 2014 pursuant to the franchise agreements. 9. Much of the discretion of the Council to choose a franchisee has been ameliorated by the evaluation criteria on page 14. 10. The original RFP required all City facilities to be serviced free of charge and required special events to be serviced free of charge(the City periodically has special events like Route 66 or neighborhood clean ups). The Mayor's RFP does not provide for special events. 11. The new RFP requires the City to continue residential billing but requires the franchisee to assume responsibility for commercial billing. 12. The original RFP had a 50%division ofmonies derived from recyclables while the new RFP allows the contractor to retain all of the recyclable monies during the 7 year term, though if the 20 year option is selected,the franchisee will be required to remit some amount. 13. The original RFP required the franchisee to hire the displaced City employees for the term of the agreement. The Mayor's RFP allows the contractor to hire qualified employees for a term suggested by the contractor and approved by the City. 14. Franchise fees are only paid under the 20 year alternative proposal. 15. It is important to note that there is a significant omission in the new RFP regarding state mandated diversion requirements which, if the contractor fails to meet,could lead to liability. P:\LuczAK\Memo re changes to RFP.wpd (Draft 6) 9/27/12 3:21 p.m. Request For Proposals For Solid Waste Collection, Receiving, Processing, Transfer and Disposal Services Including: 1) Refuse 2) Green Waste, Food Waste 3) Recyclable Materials 4) Construction and Demolition Materials This Request for Proposals is official notification of the need for services for the City of San Bernardino (City). The City is considering the outsourcing of San Bernardino's Solid Waste Collection, including, receiving, processing, transferring, and disposing of the City's Solid Waste Stream, as well as Street Sweeping Services, assuming the lease of some or all of the equipment related to those services, and/or providing your own equipment. The City seeks to study and evaluate, for a ten year term, an outsourcing option. It is contemplated that the City may be divided into two solid waste collection zones. The two zones will be divided by Sierra Way and be comprised of Zone 1, which will consist of all City of San Bernardino territory west of Sierra Way, including the west side of Sierra Way, and Zone 2, which will consist of all City territory east of Sierra Way, including the east side of Sierra Way. Each area produces approximately 80,000 tons of waste per year. The City's total annual waste tonnage is approximately 160,000 tons per year. Bidders will also have the opportunity to service County pockets which were annexed into the City, said areas will fully come under the City's jurisdiction and the successful bidder will be required to provide service to these areas in 2014. The City reserves the right to reject some or all of a bid, award a contract for all services in an entire zone or some services for a particular zone, in its discretion. In an effort to identify participants in this process that meet the City's needs and requirements with regard to company resources, local facilities, industry knowledge, community knowledge and the ability to respond to future programs and requests of the City, the City Council will evaluate qualified applicants to the Request for Proposals (RFP). The Mayor and Council will review and select the most qualified responsible bidder(s) for the project. The purpose of this request is to attract experienced applicants qualified to provide the City with the following exclusive Solid Waste and Street Sweeping services. In addition to providing an operations plan, the applicant should address the following issues at a minimum. Applicant should be willing to: Page 1 1. Accept re-assignment of all equipment leases and/or equipment purchases, or comparable disposition of property, related to the Integrated Waste Management Division including: a.Vehicles. b. Bins and containers. The City contemplates moving to a two bin system (1. Green waste; and 2. Other waste). Applicant will specify the number of bins desired with the remainder returned to the City for storage or other disposition. Or, Advise as to the number of vehicles/bins desired to be assumed, if any. 2. Accept re-assignment of all equipment leases and/or equipment purchases, or comparable disposition of property, related to the street sweeping services, including vehicles, or advise as to the number of vehicles, if any, desired to be assumed. 3. Hire all qualified City municipal solid waste and street sweeping employees to include: a. Seniority. b. Wages. c. Benefits. 4. Dismissal of any former City employee from applicant for any reason(s) other than a failed drug or alcohol test or excessive motor vehicle accidents must be reviewed and approved by the City's Human Resources Department for the term of the agreement. 5. Further details regarding employment to be negotiated. 6. The City seeks two analyses from bidders. The first analysis a bidder must provide is a price per ton basis for waste hauling and street sweeping services where the City would pay contractor for the services. The second analysis includes a franchise fee or system lease fee the contractor would pay to the City for the right to service the City. Thus, bidders must provide, at a minimum, the following: a. Provide a per ton pricing schedule for ach zone identified above as follows: 1. Zone 1 (estimated at 80,000 tons annually); i. Commercial price per ton; ii. Residential price per ton; iii. Street sweeping price (twice per month) iv. Total for all categories. 2. Zone 2 (estimated at 80,000 tons annually); i. Commercial price per ton; ii. Residential price per ton; Page 2 iii. Street sweeping price (twice per month) iv. Total for all categories. b. And/or, at the discretion of the Mayor and Common Council, pay a monthly franchise fee or system lease fee due on or before the 15th day of each month for the life of the Agreement, said amount to increase proportionately with any increase in rates due to a consumer price index increase or otherwise. 2. Pay to the City 50% of any monies recovered related to recyclables, after deducting reasonable processing costs, if applicable, or an amount pursuant to any existing agreements already in place, whichever is greater. 3. Provide and implement a smooth service transition plan with the equitable division of residential and commercial accounts if needed. 4. Receive and collect all solid waste generated within the City's collection boundaries by zone for processing, marketing and transfer, including any residual waste for ultimate disposal in a licensed landfill operated in compliance with all permits and local, state and federal regulations. Any response must demonstrate the following: a. Ability and resources to provide all labor, materials and equipment to perform complete residential, commercial and industrial solid waste collection services for the City within the City's collection boundaries. b. Ability to assume and expand the City of San Bernardino's current Solid Waste Collection Programs, complying with all State mandated requirements. Applicant will be required to extend existing price per ton costs to all annexed area incorporated into the City. c. Ability to compensate the City in the form of a franchise fee or system lease fee. d. Ability to purchase and or assume any lease agreements, for all City solid waste collection vehicles and equipment, or provide own equipment. e. Sufficient capacity "use rights" to a permitted delivery or tipping site (a transfer station, landfill, or tipping floor), and f. Sufficient capacity and "use rights" to a permitted Materials Recovery Facility (MRF) able to receive all waste generated within the City and located within a 12 mile radius of City Yards (234 S. Mt. View Avenue, San Bernardino) g. Long-term disposal capacity (and "use rights" if the landfill is owned by a third party) to accept all the solid waste generated Page 3 and collected within the collection boundaries of the city, with alternative disposal site(s) if the designated landfill is permanently or temporarily closed to all disposal traffic for any reason, and Solid Waste Facility Permit (SWFP) number(s) for all facilities submitted by the bidder listed on the RFP response cover page and checklist, and h. Price per ton for all solid waste including green waste, food waste, residential waste, commercial waste, recyclables, and construction and demolition materials. i. Residential collection will occur Monday through Friday. j. The City intends to transition to a two bin system described above. k. Advertising on waste hauling vehicles will be permitted provided the advertisement is first approved by the City and applicant pays to the City $50.00 per month per advertisement. 5. Receive, process and transfer all residential and commercial green waste and/or food waste collected by zone within the City's collection boundaries. Any response must demonstrate the processing method and cost or price per ton for all green waste collected. Receive, process and transfer all residential and commercial single stream recyclables collected within the City's collection boundaries. Any response must demonstrate the processing method, process for paying the City for recycled materials, and price per ton for all recyclable "commodities" collected. Receive, process and transfer all construction and demolition waste material collected within the City's collection boundaries. Any response must demonstrate the processing method, and cost or price per ton for all construction and demolition waste collected. 6. Receive, process and transfer electronic waste, household hazardous waste, bulky items, tire collection, holiday tree collection, and periodic special collection days. 7. Provide monthly reports to the City showing the tonnage of all solid waste and materials received, processed, transferred and/or disposed for the purpose of reporting City's diversion of waste pursuant to the requirements of AB 939, AB 341 and any other federal, state, or local requirements. Applicant will be required to provide all legally required documentation to all applicable agencies demonstrating compliance with state and federal laws either on behalf of the City or in conjunction with the City, including, but not limited to, inspection of records upon reasonable request. 8. Lease, if desired, portions of the City's corporate yards and/or garage bays and/or fueling stations. 9. Provide waste collection services to all City owned properties, City special events, and other City related services, including but not limited Page 4 to, Code Enforcement, City buildings, and parks, free of charge. 10.Provide street sweeping services twice per month. The City has approximately 1,152 curb miles to be swept. 11.The City currently utilizes the City Water Department for the billing the majority of integrated waste costs, but will consider billing suggestions made by applicant. 12.Save, defend, indemnify and hold harmless the City and shall provide and maintain in effect policies of comprehensive public, general and automobile liability insurance, in the amount of $15,000,000.00 combined single limit, and statutory worker's compensation coverage. The City shall be set forth as an additional named insured in each policy of insurance and the Certificate of Insurance furnished to the City shall require the insurer to notify the City at least 30 days prior to any change in or termination of the policy. 13.Applicant shall also be required to provide a performance bond in the amount of $2,000,000.00. 14.Provide public education and outreach related to applicable topics as required by law or otherwise. 15.Allow the City to maintain flow control of waste streams. 16.Meet or exceed the following diversion standards: a. 50% or greater diversion by December 31, 2012 b. 55% or greater diversion by December 31, 2016 c. 70% or greater diversion by December 31, 2020. To be considered, applicants must provide a non-refundable $10,000.00 fee payable to the City of San Bernardino on or before 5:00 p.m., October 8, 2012. All questions concerning the intent, meaning, and interpretation of the RFP documents or for additional information shall be submitted in writing and received no later than 5:00 p.m. PDT on October 9, 2012. The City will not respond to requests if the applicant has not submitted the $10,000.00 fee. Written inquiries shall be addressed to: Ms. Vanessa Sanchez Finance Department, 4th Floor City of San Bernardino 300 N. D Street San Bernardino, CA 92418 The City will have 48 hours to respond to all timely and valid requests for information. Applicants are requested to provide the City with five (5) copies of their narrative proposal and a separate materials handling price proposal in a sealed envelope no later than 5:00 p.m. PDT, October 16, 2012. Sealed submittals may be hand delivered or mailed to: Page 5 City of San Bernardino City Manager 6 t Floor 300 North D Street San Bernardino, CA 92418 Attention: Andrea Travis-Miller, Acting City Manager LATE SUBMITTALS WILL NOT BE ACCEPTED Applicants must also clearly identify any exceptions to the proposal. If selected, the applicant will be required to deposit $500,000.00 with the City within 15 days of the award of the contract. Proposals must include a response for collection, receiving, processing, transfer and disposal services of refuse, green waste, construction and demolition materials, and recyclable materials for an initial contract term for a number of years. The City reserves and holds at its discretion the following rights and options: 1. Issue addenda to the Request for Proposals, including extending or otherwise revising the timeline for submittals; 2. Cancel the Request for Proposals; 3. Request clarification and/or additional information from the Proposer at any point in the procurement process; 4. Execute a Franchise Agreement on the sole basis of the original proposal or any additions to proposal submissions; 5. Reject any or all Proposals, waive irregularities in any Proposal, accept or reject all or any part of any Proposal, waive any requirements of the Request for Proposals, as may be deemed to be in the best interest of the City; 6. Re-issue the RFP; 7. Amend the City's Municipal Code; 8. Modify the RFP and Agreement through published Addenda; and/or 9. Take any other action it deems in the best interest of the City, its residents and businesses. The submittal of a proposal does not guarantee that the firm will be selected to perform the services requested, and does not bind or obligate the City in any manner. The submittal of a proposal only serves notice to the City that the firm desires to be considered. The Mayor and Common Council will evaluate the proposals received and Page 6 will use their best judgment in the award of a contract to one or more. Applicants should review and accommodate the attached documents prior to submitting a response. The attached documents identify and reflect various costs and obligations associated with the Integrated Waste Management Division at this time. Page 7 Request For Proposal For Solid Waste Collection, Receiving, Processing, Transfer and Disposal Services The City requires the applicants to demonstrate their qualifications to perform the requested services, and meet their contractual and financial commitments. Provide information in sufficient detail to allow the City to assess the company's ability to collect, process and ultimately dispose of all of the City's refuse ' including green waste, food waste, residential waste, commercial waste, recyclable materials, and construction and demolition materials. Also, describe your company and staff qualifications as they relate to successfully implementing the proposed services described. Information provided must include the following: 1. Basic Information. State the name and address of the company that would sign any agreement with the City. Include the name, address, phone number, fax number, email address and title of a contact person. State the names of any other company or entity that will share significant substantive responsibilities as team members under any agreement with the City. 2. Company Description. Identify the organizational structure of your company, and any other information you believe is important in the City's decision-making process. Identify principal owners, corporate officers and majority shareholders. 3. Company Qualifications. Fully describe the services provided by your company currently or in the past that are directly relevant to the proposed services. Provide names and phone numbers of municipal clients over the past five years as references of your company's experience. 4. Residential, Commercial and Industrial Solid Waste and Recyclables Collection. Demonstrate contractors ability and resources to provide all labor, materials and equipment to perform complete residential, commercial and industrial solid waste collection services for the City of San Bernardino within the City's collection boundaries.: 5. Landfill, Material Recovery Facility (MRF), Transfer Facility References. List all the waste landfills and/or MRF / transfer stations your company operates within a 12 mile radius of City Yards (234 S. Mt. View Avenue, San Bernardino). Include all pertinent information regarding the site (s), including, but not limited to, length of time your company has been operating the facility, whether it is company owned or a contract operation, tons per year received and maximum permitted tonnage, remaining contractual term for operating the facility, remaining capacity in tons and years, any fines, penalties, citations, license or permit suspension, or other enforcement actions against the facility, and client reference name(s) and phone number(s). Page 8 6. Green Waste Sites. List all the green waste sites, including materials recovery facilities (MRFs) your company operates within twelve (12) miles of City Yards (234 S. Mt. View Avenue, San Bernardino). Include all pertinent information regarding the site (s), including, but not limited to, length of time your company has been operating the facility, whether it is company owned or a contract operation, tons per year received and maximum permitted tonnage, remaining contractual term for operating the facility, remaining capacity in tons and years, any fines, penalties, citations, license or permit suspension, or other enforcement actions against the facility, and client reference name(s) and phone number(s). 7. Recyclable Materials Sites. List all the recyclable materials sites, including materials recovery facilities (MRFs) your company operates within twelve (12) miles of City Yards (234 S. Mt. View Avenue, San Bernardino). Include all pertinent information regarding the site (s), including, but not limited to, length of time your company has been operating the facility, whether it is company owned or a contract operation, tons per year received and maximum permitted tonnage, remaining contractual term for operating the facility, remaining capacity in tons and years, any fines, penalties, citations, license or permit suspension, or other enforcement actions against the facility, and client reference name(s) and phone number(s). 8. Construction and Demolition Processing. List all the construction and demolition materials sites, including material recovery facilities (MRFs) your company operates within twelve (12) miles of City Yards (234 S. Mt. View Avenue, San Bernardino). Include all pertinent information regarding the site (s), including, but not limited to, length of time your company has been operating the facility, whether it is company owned or a contract operation, tons per year received and maximum permitted tonnage, remaining contractual term for operating the facility, remaining capacity in tons and years, any fines, penalties, citations, license or permit suspension, or other enforcement actions against the facility, and client reference name(s) and phone number(s). 9. Added Value Programs. Describe any added value programs that your company will provide to the City at no extra cost to enhance the City's efforts to reduce, reuse, recycle, and resource to recovery. 10.Street Sweeping. Describe in detail all street sweeping programs you propose to operate, including, but not limited to, types and numbers of vehicles, frequency of sweeping, suggested times of operation, and age of equipment. 11.Local Jobs. Describe the number of current employees at facility listed. Describe the number of potential local jobs that would be added at existing or new facilities if this contract is awarded. For the purpose of this RFP, a "local job" is defined as a job that will be performed within the City of San Bernardino. Page 9 12.Legal Investigations. State whether your company, parent company, subsidiaries, or any of the officers thereof, are currently or have been (over the past five years) under investigation by any local, state, or federal jurisdiction related to its business activities. Describe the circumstances of any such investigation in detail. Provide the name of the company, affiliate, and officers under investigation. Describe findings of any past investigation(s), or the status of any pending investigation(s). For national companies limit the disclosure to business activities in California. The City requires the applicants to demonstrate their qualifications to perform the requested services, and meet their contractual and financial commitments. Provide information in sufficient detail to allow the City to assess the company's ability to satisfy the terms of this Request for Proposals. Page 10 Entered Into Rec. at MCC/CDC Mg: Agenda Item No; by' City CIerk/CDC Secretary Crfy of San Bernardino Public Works Director Jim Smith's Proposed Edits(Draft 5.5) 9/2426/12 3-30-I9-m11:00 a.m.. Request For Proposals For Solid Waste Collection, Receiving, Processing, Transfer and Disposal Services Including: 1) Refuse 2) Green Waste, Food Waste 3) Recyclable Materials 4) Construction and Demolition Materials This Request for Proposals is official notification of the need for services for the City of San Bernardino (City). The City is considering the outsourcing of San Bernardino's Solid Waste Collection, including, receiving, processing, transferring, and disposing of the City's Solid Waste Stream, street sweeping services and assuming the lease of some or all equipment related thereto. The City seeks to study and evaluate, for a tria�ten year period, an outsourcing option. It is contemplated that the City may be divided into two solid waste collection zones_, the-16Ga#GR-e"akkzGne64G4ae-propo&ed-In thaP_��_, pFp�6a16Qr6ge66 hat�liE City may paFtReF with two Fefuse hau!!Rg nempanies that will engage in managed competition_for a •-„al peFied that mbe, ef years to be °gatiated-.The two zones will be divided by Sierra Way and be comprised of Zone 1 which will consist of all City of San Bernardino territory west of Sierra Way, including the west side of Sierra Way and Zone 2 which will consist of all territory east of Sierra Wav including the east side of Sierra Way. Each area produces approximately 80,000 tons of waste per Year. The City's total annual waste tonnage is approximately 160,000 tons per year. Bidders will also have the opportunity to service County pockets which areas will fully come under the City's jurisdiction in 2014 The City reserves the right to reject some or all of a bid award a contract for all services in an entire zone or some services for a particular zone at its discretion. In an effort to identify participants in this process that meet the City's needs and requirements with regard to company resources, local facilities, industry knowledge, community knowledge and the ability to respond to future programs and requests of the City, the City Council will evaluate qualified applicants to the Request for Proposals (RFP). The Mayor and Council will review and select the most qualified responsible bidder(s)for the project. The purpose of this request is to attract experienced applicants qualified to provide the City with the following exclusive Solid Waste and Street Sweeping services. In addition to providing an operations plan, the applicant should address the following issues at a minimum.Applicant should be willing to: 1. Accept re-assignment of all equipment leases and/or equipment purchases, or comparable disposition of property, related to the Integrated Waste Management Division including: a.Vehicles. b.Bins and containers; The City contemplates bidder will move to a two bin system O.green waste and 2. other waste). Bidder to specify quantity of bins desired. Or Advise as to number of vehicles if any, desired to be assumed -.. Formmtted:IMem:Len: 0.5', No bullets« 2. Accept re-assignment of all equipment leases and/or equipment purchases, or numb"� comparable disposition of property, related to the street sweeping services, including vehicles or advise as to the number of vehicles if any, desired to be assumed.- 3. lore—Guarantee a minimum of six months employment for all qualified City municipal solid waste and street sweeping employees to include: a. Seniority. b.Wages. c. Benefits. reviewed-and n.Resou•Ges--Dept of the ay.eement. 4. Provide a per ton pricing schedule for each zone identified above as follows A. Zone 1 (estimated at 80,000 tons annually)• I. Commercial price per ton ii. Residential price per tore iii. Street sweeping iv. Total B. Zone 2 (estimated at 80,000 tons annually) I. Commercial Price per ton ii Residential price per tom iii. Street sweeping IV. Total 4. Pay a monthly fFaRnhise fee due OR or before the 4 M Fates d a 1.. FY 5. Pay to the City 50% of any monies recovered related to recyclables,after processing costs. -6_____Provide and implement a smooth service transition plan with the equitable division of residential and commercial accounts if needed. i3-;_Receive and collect all solid waste generated within the City's collection boundaries for processing, marketing and transfer, including any residual waste for ultimate disposal in a licensed landfill operated in compliance with all permits and local, state and federal regulations. Any response must demonstrate the following: a. Ability and resources to provide all labor, materials and equipment to perform complete residential, commercial and industrial solid waste collection services for the City within the City's collection boundaries. b. Ability to assume and expand the City of San Bernardino's current Solid Waste Collection Programs, complying with all State mandated requirements. Applicant will be required to extend existing price per ton costs to all annexed areas incomorated into the City. "b lity-to-a edule-Mh-ao-+nerease for the 6eunnil, system lease'a at a Fete nommenAuFate with the, aFnnidint iistAri ghnyp. p e o.. ..........Ability to purchase and or assume any lease agreements, for all City solid waste collection vehicles and equipment or provide own equipment. f:e,.Sufficient capacity "use rights" to a permitted delivery or tipping site (a transfer station, landfill, or tipping floor),and a-f_Sufficient capacity and "use rights" to a permitted Materials Recovery Facility (MRF) able to receive all waste generated within the City, aad Innated within a 12 rn ie FndiA nf City ymrdA (:)g4 S. NU. View AveRue, Ran Remafdino4 The most desirable candidates will have a MRF located within the City's boundaries 1=,G„__Long-term disposal capacity(and"use rights'if the landfill is owned by a third party) to accept all the solid waste generated and collected within the collection boundaries of the city, with alternative disposal site(s) if the designated landfill is permanently or temporarily closed to all disposal traffic for any reason, and Solid Waste Facility Permit (SWFP) number(s) for all facilities submitted by the bidder listed on the RFP response cover page and checklist, and Oh,Price per ton for all solid waste including green waste, food waste, residential waste, commercial waste, recyclables, and construction and demolition materials. 9 S_____Receive, process and transfer all residential and commercial green waste and/or food waste collected by-gone within the City's collection boundaries. Any response must demonstrate the processing method and cost or price per ton for all green waste collected. Receive, process and transfer all residential and commercial single stream recyclables collected within the City's collection boundaries.Any response must demonstrate the processing method, process for paying the City for recycled materials, and price per ton for all recyclable "commodities" collected. Receive, process and transfer all construction and demolition waste material collected within the City's collection boundaries. Any response must demonstrate the processing method, and cost or price per ton for all construction and demolition waste collected. 1-0,9 Receive, process and transfer electronic waste, household hazardous waste, bulky items, tire collection, holiday tree collection, and periodic special collection days. a-1 C. ­Provide monthly reports to the City showing the tonnage of all solid waste and materials received, processed, transferred and/or disposed for the purpose of reporting City's diversion of waste pursuant to the requirements of AB 939,AB 341 and any other federal, state, or local requirements. Applicant will be required to provide all legally required documentation to all applicable agencies demonstrating compliance with state and federal laws either on behalf of the City or in conjunction with the City, including, but not limited to, inspection of records upon reasonable request. 42-2 1.1:........_ 13:12. Provide waste collection services to all City owned properties, City special , and services free of charge. Special events are excluded or will be negotiated at a later time L3. Provide street sweeping services a minimum of once per month The City has approximately 1 152 curb miles to be swept --- Pormamed:h,6v 1,t o• 1514_ Save, defend, indemnify and hold harmless the City and shall provide and maintain in effect policies of comprehensive public, general and automobile liability insurance, in the amount of $15,000,000.00 combined single limit, and statutory worker's compensation coverage. The City shall be set forth as an additional named insured in each policy of insurance and the Certificate of Insurance furnished to the City shall require the insurer to notify the City at least 30 days prior to any change in or termination of the policy. 46715.Applicant shall also be required to provide a performance bond in the amount of$ .$2.000 000 00. 47-16._-Provide public education and outreach related to applicable topics as required by law or otherwise. 16:17. Allow the City to maintain flow control of waste streams. 1-g 18^Meet or exceed the following diversion standards: a. 50%or greater diversion by December 31,2012 b. 55%or greater diversion by December 31,2016 c. 70%or greater diversion by December 31,2020. Residential collection will occur Monday through Friday and while the City currently utilizes three bins it foresees transitionin to a two bin system. Additionally advertisement on waste hauling vehicles will be permitted provided the advertisement is approved by the City and applicant Pays to the City $50.00 per month per advertisement. Applicants must-provide a non-refundable 110,000.00 fee to respond to this RFP Applicant must also clearly identify any exceptions to the proposal. If selected, the applicant will be required to deposit $ with the City within 15 days of the award of the contract. Proposals must include a response for collection, receiving, processing, transfer and disposal services of refuse, green waste, construction and demolition materials, and recyclable materials for an initial contract term for a number-ef�10 year term. All questions concerning the intent, meaning, and interpretation of the RFP documents or for additional information shall be submitted in writing and received no later than 2:00 p.m. PDT on Septembe 2012. Written inquiries shall be addressed to: Ms.Andrea Travis-Miller Page Acting City Manager City of San Bernardino 300 N. D Street San Bernardino, CA 92418 The City reserves and holds at its discretion the following rights and options: 1. Issue addenda to the Request for Proposals, including extending or otherwise revising the timeline for submittals, 2. Cancel the Request for Proposals, 3. Request clarification and/or additional information from the Proposer at any point in the procurement process, 4. Execute a Franchise Agreement on the sole basis of the original proposal or any additions to proposal submissions, 5. Reject any or all Proposals, waive irregularities in any Proposal, accept or reject all or any part of any Proposal, waive any requirements of the Request for Proposals, as may be deemed to be in the best interest of the City, 6. Re-issue the RFP; T Amend the City's Municipal Code; 8. Modify the RFP and Agreement through published Addenda, and/or 9. Take any other action it deems in the best interest of the City, its residents and businesses. The submittal of a proposal does not guarantee that the firm will be selected to perform the services requested, and does not bind or obligate the City in any manner. The submittal of a proposal only serves notice to the City that the firm desires to be considered. The City staff will evaluate the proposals received and will recommend that the Mayor and Council award a contract to one or more firms with the highest rated and best proposals. Applicants should review and accommodate the attached documents prior to submitting a response. The attached documents identify and reflect various costs and obligations associated with the Integrated Waste Management Division at this time. Applicants are requested to provide the City with five (5) copies of their narrative proposal and a separate materials handling price proposal in a sealed envelope no later than be 26(10 business days) 2012. Sealed submittals may be hand delivered or mailed to City of San Bernardino Page City Manager 6" Floor 300 North D Street San Bernardino, CA 92418 Attention: Andrea Travis-Miller,Acting City Manager LATE SUBMITTALS WILL NOT BE ACCEPTED Page Request For Proposal For Solid Waste Collection, Receiving, Processing, Transfer and Disposal Services The City requires the applicants to demonstrate their qualifications to perform the requested services, and meet their contractual and financial commitments. Provide information in sufficient detail to allow the City to assess the company's ability to collect, process and ultimately dispose of all of the City's refuse ' including green waste, food waste, residential waste, commercial waste, recyclable materials, and construction and demolition materials. Also, describe your company and staff qualifications as they relate to successfully implementing the proposed services described. Information provided must include the following: 1. Basic Information. State the name and address of the company that would sign any agreement with the City. Include the name, address, phone number, fax number, email address and title of a contact person. State the names of any other company or entity that will share significant substantive responsibilities as team members under any agreement with the City. 2. Company Description. Identify the organizational structure of your company, and any other information you believe is important in the City's decision-making process. Identify principal owners,corporate officers and majority shareholders. 3. Company Qualifications. Fully describe the services provided by your company currently or in the past that are directly relevant to the proposed services. Provide names and phone numbers of municipal clients over the past five years as references of your company's experience. 4. Residential, Commercial and Industrial Solid Waste and Recyclables Collection. Demonstrate contractors ability and resources to provide all labor, materials and equipment to perform complete residential, commercial and industrial solid waste collection services for the City of San Bernardino within the City's collection boundaries.: 5. Landfill, Material Recovery Facility (MRF), Transfer Facility References. List all the waste landfills and/or MRF / transfer stations your company operates Include all pertinent information regarding the site (s), including, but not limited to, length of time your company has been operating the facility, whether it is company owned or a contract operation, tons per year received and maximum permitted tonnage, remaining contractual term for operating the facility, remaining capacity in tons and years, any fines, penalties, citations, license or permit suspension, or other enforcement actions against the facility, and client reference name(s)and phone number(s). Page 6. Green Waste Sites. List all the green waste sites, including materials recovery facilities (MRFs) your company operates wthin twelve (12) Fn leg of City YaFds (234 S. Mt. View •"• ,%aff--BeMardine). Include all pertinent information regarding the site (s), including, but not limited to, length of time your company has been operating the facility, whether it is company owned or a contract operation, tons per year received and maximum permitted tonnage, remaining contractual term for operating the facility, remaining capacity in tons and years, any fines, penalties, citations, license or permit suspension, or other enforcement actions against the facility, and client reference name(s)and phone number(s). 7. Recyclable Materials Sites. List all the recyclable materials sites, including materials recovery facilities (MRFs) your company operates within hvelve miles of City Yards (221 S. Mt. View Avenue, San . Include all pertinent information regarding the site (s), including, but not limited to, length of time your company has been operating the facility, whether it is company owned or a contract operation, tons per year received and maximum permitted tonnage, remaining contractual term for operating the facility, remaining capacity in tons and years, any fines, penalties, citations, license or permit suspension, or other enforcement actions against the facility, and client reference name(s) and phone number(s). 8. Construction and Demolition Processing. List all the construction and demolition materials sites, including material recovery facilities (MRFs)-yOW Gampany epeFates with!R twelve (12) milpq Of City YaFd6 (234 5; Ailt �tipom Avenue, Sai; . Include all pertinent information regarding the site (s), including, but not limited to, length of time your company has been operating the facility, whether it is company owned or a contract operation, tons per year received and maximum permitted tonnage, remaining contractual term for operating the facility, remaining capacity in tons and years, any fines, penalties, citations, license or permit suspension, or other enforcement actions against the facility, and client reference name(s) and phone number(s). 9. Added Value Programs. Describe any added value programs that your company will provide to the City at no extra cost to enhance the City's efforts to reduce, reuse, recycle, and resource to recovery., Formatted:root oo:cuarom Color(RGB(27,27,26)) Formatted:List Paragraph,Left, No bullets or 8.10,_ Street Sweeping. Describe in detail all street sweeping programs you numbering,widow/orphan=hd,Adjust propose to operate Including but not limited to types of vehicles freguencv of seam be°"ee"Latin and Asian text,Adjust space between Asian text and numbers sweeping, number of vehicles suggested times of operation and age of equipment. 1-0:11. _Local Jobs. Describe the number of current employees at facility ies listed. Describe the number of potential local jobs that would be added at existing or new facilities if this contract is awarded. For the purpose of this RFP, Page a "local job" is defined as a job that will be performed within the City of San Bernardino. 44-.12. Legal Investigations. State whether your company, parent company, subsidiaries, or any of the officers thereof, are currently or have been (over the past five years) under investigation by any local, state, or federal jurisdiction related to its business activities. Describe the circumstances of any such investigation in detail. Provide the name of the company, affiliate, and officers under investigation. Describe findings of any past investigation(s),or the status of any pending investigation(s). For national companies limit the disclosure to business activities in California. The City requires the applicants to demonstrate their qualifications to perform the requested services, and meet their contractual and financial commitments. Provide information in sufficient detail to allow the City to assess the company's ability to satisfy the terms of this Request for Proposals. Page