Cupertino City Council
November 18, 2025

EXHIBIT A

DEFINITIONS
December 3, 2020 Page A-13 City of Cupertino/Recology Franchise Exhibit A “Recyclable Paper” includes, but is not limited to, Paper Products, Printing and Writing Paper, and other Organic Waste that Generators place in the Recyclable Materials Container for the purposes of Collection, Transport, and Recycling by Contractor and that exclude Excluded Waste. Recyclable Paper is a subset of Organic Waste and of Recyclable Materials.
“Recycle” or “Recycling” means the process of sorting, cleansing, treating, and reconstituting at a Recyclable Materials Processing Facility materials that would otherwise be Disposed of at a landfill for the purpose of returning such materials to the economy in the form of raw materials for new, reused, or reconstituted products. Recycling includes processes deemed to constitute a reduction of landfill Disposal pursuant to 14 CCR, Division 7, Chapter 12, Article 2. Recycling does not include gasification or transformation as defined in Public Resources Code Section 40201. “Renewable Natural Gas” or “RNG” means gas derived from Organic Waste that has been Diverted from a landfill and Processed at an in-vessel digestion facility that is permitted or otherwise authorized by 14 CCR to recover Organic Waste, or as otherwise defined in 14 CCR Section 18982(a)(62). “Residential” shall mean of, from, or pertaining to a Single-Family Premises or Multi-Family Premises including Single-Family homes, apartments, condominiums, Townhouse complexes, mobile home parks, and cooperative apartments.
“Residual” or “Residue” means the Solid Waste destined for Disposal, further Transfer/Processing as defined in 14 CCR Section 17402(a)(30) or 14 CCR Section 17402(a)(31), or transformation that remains after Processing has taken place and is calculated in percent as the weight of Residual divided by the total incoming weight of materials.
“Reuse” or any variation thereof, means the use of material in the same or similar form as it was produced, which might otherwise be discarded, or as otherwise defined in 14 CCR Section 17402.5(b)(2). “Salvageable Material” (or “Salvaged Material”) means an object or material that results from salvaging, where salvaging means the controlled separation of Solid Waste material that does not require further processing for Reuse or Recycling prior to Transfer activities, or as otherwise defined by 14 CCR Section 17402(a)(24).
“SB 1383” means Senate Bill 1383 of 2016 approved by the Governor on September 19, 2016, which added Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the Health and Safety Code, and added Chapter 13.1 (commencing with Section 42652) to Part 3 of Division 30 of the Public Resources Code, establishing methane emissions reduction targets in a Statewide effort to reduce emissions of short-lived climate pollutants as amended, supplemented, superseded, and replaced from time to time.

For the purposes of this Agreement, SB 1383 specifically refers to the Short-Lived Climate Pollutants (SLCP): Organic Waste Reductions regulations developed by CalRecycle and adopted on November 10, 2020 that created Chapter 12 of 14 CCR, Division 7 and amended portions of regulations of 14 CCR and 27 CCR.
“Self-Hauler” or “Self-Haul” means a Person who hauls with their vehicle material they have generated (including Discarded Materials, recovered material, or any other material) to another Person, or as otherwise defined in 14 CCR Section 18982(a)(66). Self-Hauling includes occasions where an employee of 212
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EXHIBIT A

DEFINITIONS
December 3, 2020 Page A-14 City of Cupertino/Recology Franchise Exhibit A a Commercial Generator or family member of a Residential Generator hauls materials generated by other Persons at such Premise. Self-Hauler also includes a Person who Back-Hauls waste, as defined in 14 CCR Section 18982(a)(66)(A).
“Service Level” refers to the size of a Customer’s Container, the number of Containers of each type, and the frequency of Collection service.
“Service Opportunity” shall mean each individual scheduled opportunity Contractor has to Collect from a Container at a Customer’s location. For example, a Commercial Customer receiving Recyclable Materials Collection service two (2) times per week from two (2) Containers, Organic Materials Collection service two (2) times per week from (2) Containers, and Solid Waste Collection service two (2) times per week from two (2) Containers would have a total of twelve (12) Service Opportunities each week. Service Opportunities shall be calculated based on the Service Levels presented in Contractor’s most recent quarterly report to the City. A Single-Family Customer with three (3) Carts for Collection of Solid Waste, Recyclable Materials, and Organic Materials would have a total of three (3) Service Opportunities each week.
“Single-Family” means, notwithstanding any contrary definition in the City Code, any detached or attached house or residence designed or used for occupancy by one (1) family, provided that Collection service feasibly can be provided to such Premises as an independent unit, and the Owner or Occupant of such independent unit is billed directly for the Collection service. Single-Family includes Townhouses and each independent unit of duplex, tri-plex, or four-plex Residential structures, regardless of whether each unit is separately billed for their specific Service Level. “Solid Waste” means solid waste as defined in California Public Resources Code, Division 30, Part 1, Chapter 2, §40191 and regulations promulgated hereunder. Solid Waste includes materials meeting the requirements of this paragraph that Generators place in the Solid Waste Container for the purposes of Collection and Transport to the Disposal Facility by Contractor. Excluded from the definition of Solid Waste are Excluded Waste, C&D, Source Separated Recyclable Materials, Source Separated Organic Materials, and radioactive waste. Notwithstanding any provision to the contrary, Solid Waste may include de minimis volumes or concentrations of waste of a type and amount normally found in Residential Solid Waste after implementation of programs for the safe Collection, Recycling, treatment, and Disposal of Household Hazardous Waste in compliance with Section 41500 and 41802 of the California Public Resources Code as may be amended from time to time. Solid Waste includes Salvageable Materials only when such materials are included for Collection in a Solid Waste Container, not Source Separated from Solid Waste at the site of generation.
“Solid Waste Fund Operations Fee” means the fee paid by Contractor to the City as described in Section

7.2. “Source Separated” means the segregation, by the Generator, of materials designated for separate Collection for some form of Recycling, Processing, Composting, recovery, or Reuse, such that the materials are segregated from Solid Waste and placed in a Container designated for Collection of that type of material (e.g., Recyclables in an Organic Materials Container would not be considered Source Separated). “State” means the State of California.
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EXHIBIT A

DEFINITIONS
December 3, 2020 Page A-15 City of Cupertino/Recology Franchise Exhibit A “Subcontractor” means a Person who has entered into a contract, express or implied, with Contractor for the performance of an act that is necessary for Contractor’s fulfillment of its obligations for providing service under this Agreement. Vendors providing materials and supplies to Contractor shall not be considered Subcontractors.
“Term” means the term of this Agreement, including extension periods if granted, as provided for in Article 2.
“Tier One Commercial Edible Food Generator” means a Commercial Edible Food Generator that is one of the following, each as defined in 14 CCR Section 18982:

A. Supermarket.

B. Grocery Store with a total facility size equal to or greater than 10,000 square feet.

C. Food Service Provider.

D. Food Distributor.

E. Wholesale Food Vendor.

If the definition in 14 CCR Section 18982(a)(73) of Tier One Commercial Edible Food Generator differs from this definition, the definition in 14 CCR Section 18982(a)(73) shall apply to this Agreement. “Tier Two Commercial Edible Food Generator” means a Commercial Edible Food Generator that is one of the following, each as defined in 14 CCR Section 18982:

A. Restaurant with 250 or more seats, or a total facility size equal to or greater than 5,000 square feet.

B. Hotel with an on-site food facility and 200 or more rooms.

C. Health facility with an on-site food facility and 100 or more beds.

D. Large Venue.

E. Large Event.

F. A State agency with a cafeteria with 250 or more seats or total cafeteria facility size equal to or greater than 5,000 square feet.

G. A local education agency with an on-site food facility. If the definition in 14 CCR Section 18982(a)(74) of Tier Two Commercial Edible Food Generator differs from this definition, the definition in 14 CCR Section 18982(a)(74) shall apply to this Agreement. “Ton” or “Tonnage” means a unit of measure for weight equivalent to two thousand (2,000) standard pounds where each pound contains sixteen (16) ounces.
“Tonnage Baseline Diversion Percentage” means the Diversion percentage calculated in accordance with Section 5.11.B for the period February 1, 2021 through December 31, 2021. “Total Service Opportunities” shall mean the sum of all Service Opportunities in a given time period. “Townhouse” means an attached or semi-attached Single-Family Premises within a group of attached or semi-attached Single-Family Premises, regardless of whether the Premises is billed individually or through a central account (e.g., homeowner association, property manager), wherein each unit maintains individual Collection service subscription.
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EXHIBIT A

DEFINITIONS
December 3, 2020 Page A-16 City of Cupertino/Recology Franchise Exhibit A “Transfer” means the act of transferring the materials Collected by Contractor in its Route vehicles into larger vehicles for Transport to other facilities for the purpose of Recycling, Processing, or Disposing of such materials.
“Transportation” or “Transport” means the act of conveying Collected materials from one location to another.
“Universal Waste” or “U-Waste” means all wastes as defined by Title 22, Subsections 66273.1 through 66273.9 of the California Code of Regulations. These include, but are not limited to, batteries, fluorescent light bulbs, mercury switches, and E-Waste.
“Used Motor Oil and Filters” means used oil fluids for vehicles including motor oil, brake, transmission and hydraulic fluids, crankcase and differential oils, lubricating oils for vehicles, and oil filters from automobiles and light trucks.
“Used Oil Recovery Kit” means a kit containing: one (1) reusable plastic jug of at least one (1) gallon capacity with a leak-proof watertight screw-on top to contain Used Motor Oil or used cooking oil; one (1) six (6) mil plastic disposable resealable bag with double track seal of sufficient capacity to accommodate one (1) Used Motor Oil Filter; and, a flyer, brochure, or other informational media approved by the City intended to educate Customers about the Used Motor Oil and Filter Collection program and the benefits resulting from the proper handling of Used Motor Oil and Filters. The Used Oil Recovery Kit is to be provided to Customers by Contractor to recover Used Motor Oil and Filters and used cooking oil from Single-Family residents.
“Working Days” means days that Contractor is required to provide regularly scheduled Collection services under this Agreement.
“Yard Trimmings” means those Discarded Materials that will decompose and/or putrefy (including, but not limited to, green trimmings, grass, weeds, leaves, prunings, branches, dead plants, brush, tree trimmings, dead trees, small pieces of unpainted and untreated wood, and other types of Organic Materials) resulting from normal yard and landscaping maintenance that may be specified in the City’s Legislation for Collection and Processing as Organic Materials under this Agreement. Yard Trimming includes materials meeting the requirements of this paragraph that Generators place in the Organic Materials Container for the purposes of Collection, Transport, and Processing by Contractor and that exclude Excluded Waste. Yard Trimmings does not include items herein defined as Excluded Waste. Yard Trimmings are a subset of Organic Materials. Yard Trimmings placed for Collection may not exceed six (6) inches in diameter and three (3) feet in length and must fit within Contractor-provided Container. Unless collected as Organic Materials, Yard Trimmings must be Source Separated. 215
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EXHIBIT B:

DIRECT SERVICES
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EXHIBIT B

DIRECT SERVICES
December 3, 2020 Page B-1 City of Cupertino/Recology Franchise Exhibit B The following Exhibits (B1 through B5) describe the programs that, in aggregate, represent the direct services to be performed under this Agreement by Contractor.

Each of the following Exhibits (B1 through B5) present the programs to be provided to each Customer Type by Contractor. Within each program description are specific requirements for the:
• Type and size of Containers or Service Levels to be offered by Contractor under each program; • Frequency of service to be offered by Contractor to Customers; • Location of service, including an indication of whether or not additional charges may apply if a Customer selects a location that is more costly to serve (e.g., back-yard service); • Materials that are acceptable or prohibited within the program; • Provision of additional services to the Customer if the standard Service Levels are inadequate, either on a regular or periodic basis, and an indication of whether or not additional charges may apply; and/or,
• Other requirements and considerations of the program.

Contractor shall provide the services for each program described in accordance with the specific program requirements detailed in Exhibits B1 through B5 and Contractor shall promote such programs using the public education and outreach methods described in Exhibit C. 217
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EXHIBIT B1:

SINGLE-FAMILY RESIDENTIAL SERVICE
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EXHIBIT B1

SINGLE-FAMILY RESIDENTIAL SERVICES
December 3, 2020 Page B1-1 City of Cupertino/Recology Franchise Exhibit B1

1. RECYCLABLE MATERIALS COLLECTION
Contractor shall Collect Recyclable Materials placed in Contractor-provided Containers one (1) time per week from Single-Family Customers and Transport all Recyclable Materials to the Approved Recyclable Materials Processing Facility for Processing.

Containers: Carts
Container Sizes: 32-, 64-, and 96-gallons (or comparable sizes approved by the City).

Standard Container size is 64-gallon. 96-gallon service shall be made available for no additional charge, upon request by Customer.

Service Frequency: One (1) time per week on the same day as Organic Materials and Solid Waste Collection services unless the Customer has received a Collection frequency waiver for Recyclable Materials in accordance with Section 4.12.2, in which case service frequency shall be not less than one (1) time per fourteen (14) days.

Service Location: Curbside
Acceptable Materials: Recyclable Materials
Prohibited Materials: Solid Waste, Organic Materials, Excluded Waste Additional Service: Single-Family Customers shall receive one (1) Recyclable Materials Cart standard and may request up to two (2) additional Recyclable Materials Carts at no additional charge unless a Rate has been approved by the City. Contractor shall provide additional Recyclable Materials Carts to Single-Family Customers upon request and may charge the Rate approved by the City for additional Recyclable Materials Cart service at a given Container size.

Contractor shall allow Single-Family Customers to place unlimited flattened and bundled Cardboard (each bundle no larger than 3’ x 3’ x 12”), and additional volumes of mixed Recyclable Materials contained in durable Customer-provided Containers adjacent to the Recyclable Materials Cart on their regularly-scheduled Collection day at no additional charge to the Customer. Such Customer-provided Containers shall be Disposed of unless clearly marked otherwise.

Other Requirements: Contractor shall accept household batteries and CFLs in the Recyclable Materials program, provided that those batteries and CFLs have been separately packaged in a sealed, clear plastic bag and placed on top of the Recyclable Materials Cart.

Other Household Hazardous Waste shall be handled in accordance with Exhibit B1, Section 9.

Contractor may refuse to Collect a Recyclable Materials Container in accordance with Section 4.10.3 of this Agreement

2. ORGANIC MATERIALS COLLECTION
Contractor shall Collect Organic Materials placed in Contractor-provided Carts one (1) time per week from Single-Family Customers and Transport all Organic Materials to the Approved Organic Materials Processing Facility for Processing.

Containers: Carts
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EXHIBIT B1

SINGLE-FAMILY RESIDENTIAL SERVICES
December 3, 2020 Page B1-2 City of Cupertino/Recology Franchise Exhibit B1 Container Sizes: 24-, 32-, 64, 96-gallons (or comparable size approved by the City).

Standard Container size is 96-gallons, or 24- or 32-gallons for Yard Trimmings exempt Customers.

Service Frequency: One (1) time per week on the same day as Recyclable Materials and Solid Waste Collection service.

Service Location: Curbside.

Acceptable Materials: Organic Materials (including Yard Trimmings, Food Waste, and Food-Soiled Paper).

Prohibited Materials: Recyclable Materials, Solid Waste, Excluded Waste Additional Service: Single-Family Customers shall receive one (1) Organic Materials Cart standard and may request up to two (2) additional Organic Materials Carts at no additional charge. Contractor shall provide additional Organic Materials Carts to SingleFamily Customers upon request and may charge the appropriate Rate approved by the City for additional Organic Material Carts service at a given Container size.

Contractor shall allow Single-Family Customers to place additional volumes of Organic Materials contained in durable Customer-provided Containers adjacent to the Organic Material Cart on their regularly-scheduled Collection day at no additional charge to the Customer. Such Customer-provided Containers shall be Disposed of unless clearly marked otherwise. Customer-provided Containers shall be in accordance with Section 5.6.

Until December 31, 2021 and subject to the provisions of the City’s Municipal Code, Single-Family Customers that demonstrate they have no Yard Trimmings for Collection are entitled to a smaller Container for Food Waste service at the City-approved rate for Yard Trimmings exempt service at a given Container size.

Other Requirements: Contractor shall provide to each Single-Family Customer upon request a kitchen container designed to contain Food Scraps prior to placement in the Customer’s Organic Materials Cart. Contractor shall not be required to provide more than one (1) kitchen container per Single-Family Premises during the Term, unless there is a change in the Premises’ occupancy. Kitchen container specifications shall be approved by the City prior to ordering and distribution.

Contractor may refuse to Collect an Organic Materials Container in accordance with Section 4.10.3 of this Agreement.

3. SOLID WASTE COLLECTION
Contractor shall Collect Solid Waste placed in Contractor-provided Carts one (1) time per week from Single-Family Customers and Transport all Solid Waste to the Designated Disposal Facility for Disposal.

Containers: Carts
Container Sizes: 24-, 32-, 64-, and 96-gallons (or comparable sizes approved by the City) as requested by Customer.

Service Frequency: One (1) time per week on the same day as Recyclable Materials and Organic Materials Collection service unless the Customer has received a Collection frequency waiver for Solid Waste in accordance with Section 4.12.2, in which case 221
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EXHIBIT B1

SINGLE-FAMILY RESIDENTIAL SERVICES
December 3, 2020 Page B1-3 City of Cupertino/Recology Franchise Exhibit B1 service frequency shall be not less than one (1) time per fourteen (14) days.

Service Location: Curbside
Acceptable Materials: Solid Waste
Prohibited Materials: Recyclable Materials, Organic Materials, Excluded Waste Additional Service: Contractor shall provide additional Solid Waste Carts to Single-Family Customers upon request and may charge the appropriate Rate approved by the City for additional Solid Waste Cart service at a given Container size.

Additional pick-ups requested by a Customer, on days other than their regularly scheduled Collection day, shall be available at the Rate approved by the City for such service.

Single-Family Customers may purchase Extra Bag Tags for additional Solid Waste.

Solid Waste must be placed in a Customer-provided bag, with the Extra Bag Tag affixed and clearly visible, and placed next to their Solid Waste Container for Collection. Contractor shall Collect all properly placed bags labeled with Extra Bag Tags and Customers shall not be required to schedule such extra service in advance. Contractor shall make Extra Bag Tags readily available to Single-Family Customers through the mail and at Contractor’s office at 1675 Rogers Avenue, San Jose, CA 95112. Contractor shall maintain a sufficient inventory of Extra Bag Tags to accommodate additional Solid Waste.

Other Requirements: None

4. USED OIL, FILTER, AND COOKING OIL COLLECTION
Contractor shall Collect Used Motor Oil and Filters and used cooking oil placed in a Contractor-provided Used Oil Recovery Kit or a Customer-provided Container from Single-Family Customers and shall Recycle all Used Motor Oil and Filters and used cooking oil Collected pursuant to this Agreement.

Containers: Used Oil Recovery Kit
Container Sizes: Contractor-provided 1-gallon filter bags and, 1-gallon oil jugs (screw-on lids); and/or Customer-provided sealed plastic bag for filters; and/or Customerprovided 1-gallon non-leaking plastic containers with tight-fitting lid or the containers the new oil came in with tight-fitting lid (screw-on lids); Service Frequency: Up to one (1) time per week on the same day as Solid Waste Collection service.

Service Location: Curbside (adjacent to Recyclable Materials Cart) Acceptable Materials: Used Motor Oil and Filters, used cooking oil Prohibited Materials: Recyclable Materials, Organic Materials, Solid Waste, Excluded Waste Additional Service: Not applicable
Other Requirements: Contractor shall provide a Used Oil Recovery Kit to a Customer within three (3) Working Days of Customer request, at no additional cost to Customer. Upon Collection of Used Motor Oil and Filter from a Customer, Contractor shall leave a clean and empty Used Oil Recovery Kit adjacent to the Recyclable Materials Cart.

Contractor shall Recycle the Used Motor Oil and Filters and used cooking oil only with Persons who are authorized by the State of California to Recycle such 222
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EXHIBIT B1

SINGLE-FAMILY RESIDENTIAL SERVICES
December 3, 2020 Page B1-4 City of Cupertino/Recology Franchise Exhibit B1 materials. In the event the Used Motor Oil and Filter and/or used cooking oil Collected pursuant to this Agreement is contaminated to the extent that the materials require Disposal as a Hazardous Waste, Contractor shall Dispose of such materials, at Contractor’s own cost and expense in accordance with Applicable Law.

Contractor shall include in its monthly report, as provided in Exhibit D, the number of instances of any contamination that renders the Used Motor Oil and Filter or used cooking oil unacceptable for Recycling or that requires Disposal as Hazardous Waste.

Contractor shall keep all Used Motor Oil and Filters and used cooking oil Collected pursuant to this Agreement segregated from other materials.

Contractor may refuse to Collect Used Motor Oil and Filter if it is not contained in an approved Used Oil Recovery Kit, provided that Contractor leaves a NonCollection Notice that explains the reason for non-Collection, and also leaves a clean and empty Used Oil Recovery Kit adjacent to the refused Used Motor Oil and Filter set-out. Contractor may refuse to Collect a Used Motor Oil Recovery Kit that contains liquid other than Used Motor Oil or cooking oil, provided that Contractor leaves a Non-Collection Notice that explains the reason for nonCollection.

5. ON-CALL BULKY ITEM AND BIN-BY-THE-DAY COLLECTION
Contractor shall Collect Bulky Items and other materials described herein from Single-Family Customers.

Upon Customer request, Contractor shall provide Bin-by-the-Day service to Single Family Customers at the City-approved Rate for Bin-by-the-Day service at a given Container size. Contractor shall Transport all Collected materials to the appropriate Approved Facility for Reuse, Recycling, Processing, or Disposal.

Containers: 4-, 6-, 7-cubic yards for Bin-by-the-Day service (or comparable sizes approved by the City)
Service Level: For Bulky Item Collection, up to two-hundred (200) pounds per item; total volume not to exceed two (2) cubic yards.

Service Frequency: For Bulky Item Collection, up to two (2) times per year.

For Bin-by-the-Day, on-call for a period not to exceed seven (7) consecutive calendar days.

Service Location: Curbside
Acceptable Materials: For Bulky Item Collection, Bulky Items.

For Bin-by-the-Day, Bulky Items, Recyclable Materials, E-Waste, U-Waste, Yard Trimmings, and Solid Waste.

Prohibited Materials: Food Scraps, Hazardous Waste, abandoned automobiles, trees, Excluded Waste or any single item (e.g., large auto parts, tires, etc.) that exceeds fifty (50) pounds in weight.

Additional Service: Contractor shall provide up to two (2) Bulky Item Collections per year to SingleFamily Customers at no additional cost, and may charge the Rate approved by the City for any additional Bulky Item Collections requested by the Customer. 223
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EXHIBIT B1

SINGLE-FAMILY RESIDENTIAL SERVICES
December 3, 2020 Page B1-5 City of Cupertino/Recology Franchise Exhibit B1 Single-Family Customers may request Bin-by-the-Day service at the Cityapproved Rate for Bin-by-the-Day service at a given Container size.

Other Requirements: Contractor shall Collect Yard Trimmings separately from acceptable materials described in this Exhibit B1, Section 5. Upon Customer request, Contractor shall provide separate On-Call Collection service for Yard Trimmings. Contractor shall Collect up to six (6) thirty-two (32) gallon Carts, or the equivalent volume of paper garden bags, of Yard Trimmings per scheduled on-call Yard Trimmings Collection service.

Contractor shall not Dispose of materials Collected through the on-call Bulky Item Collection program unless the materials cannot be reused, Recycled, or Processed.

6. HOLIDAY TREE COLLECTION
Annually, commencing the day after December 25 and four (4) weeks thereafter, Contractor shall Collect holiday trees from Single-Family Customers. Customers are required to place the holiday trees Curbside on the Customer’s regularly scheduled Collection day. Holiday trees must be removed from stands, cut into lengths no longer than six (6) feet, and be free of ornaments, garlands, tinsel, or other decorations.

Contractor shall not be required to Collect holiday trees that do not meet the aforementioned criteria. In accordance with Section 4.10.3, Contractor shall affix a Non-Collection Notice to any non-Collected holiday tree informing the Customer of the reason(s) for non-Collection. Contractor shall deliver all Collected holiday trees to the Approved Organic Materials Processing Facility for Processing.

Holiday tree Collection services shall be provided at no additional cost to the City or the Customer.

7. ALTERNATIVE SERVICE LOCATION FOR DISABLED SINGLE-FAMILY CUSTOMERS Contractor shall allow for Persons that have a disability as defined by the Americans with Disabilities Act (which means Public Law 101-336, 104 Stat. 327, 42 U.S.C. 12101-12213 and 27 U.S.C. 225 and 611, and all Federal rules and regulations relating thereto) that are Occupants of Single-Family Premises to receive Collection services from the back yard or side yard of the Premises at no extra charge to the Customer, provided the household contains no non-disabled adult residents. The City shall review all applications (which shall include statements from physicians) made by Customers to determine conformance with this exemption provision and shall grant exemptions, if applicable. The City shall require recipients of this service to re-verify annually that they meet eligibility requirements. Upon Customer request, Contractor may make such alternative service locations available to Single-Family Customers that do not have a disability (as defined herein) at the Rate approved by the City for alternative location service at a given Container size.

8. CONTAINER SHARING FOR TOWNHOUSE PREMISES
In special circumstances, for Customers with space limitations and upon approval by the City Contract Manager, Contractor shall permit Townhouse Customers to share Discarded Materials service with other geographically proximate Customers. Such shared service shall be performed, and billed, as if it were being provided to a single Customer, with the exception that Contractor shall require all Customers sharing a single service account to identify a “Primary Responsible Party”, which will serve as the singular point of contact for communication and billing from Contractor and the City, along with a list of all addresses with which the Primary Responsible Party will share service. 224
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EXHIBIT B1

SINGLE-FAMILY RESIDENTIAL SERVICES
December 3, 2020 Page B1-6 City of Cupertino/Recology Franchise Exhibit B1

9. HOUSEHOLD HAZARDOUS WASTE
Household Hazardous Waste (HHW) shall be handled through the Santa Clara County HHW Drop-Off Program. Contractor is required to promote County HHW Programs in accordance with Exhibit C.

Contractor and the City shall encourage use of extended producer responsibility programs such as PaintCare and Med-Project, where appropriate.

10. BACKYARD COMPOST AND WORM BIN DELIVERY
Single-Family residents who complete Compost education workshops provided by the University of California Cooperative Extension (UCCE), or an equitable program as approved by the City Contract Manager, shall be allowed to request and receive one City-approved Compost or vermicompost bin per household at no cost, subject to availability. Up to sixty (60) bins per year shall be purchased by the City and delivered to Contractor for storage and delivery to Single Family residents. 225
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EXHIBIT B2:

MULTI-FAMILY RESIDENTIAL SERVICES
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EXHIBIT B2

MULTI-FAMILY RESIDENTIAL SERVICES
December 3, 2020 Page B2-1 City of Cupertino/Recology Franchise Exhibit B2

1. RECYCLABLE MATERIALS COLLECTION
Contractor shall Collect Recyclable Materials placed in Contractor-provided Containers from Multi-Family Customers and shall Transport all Recyclable Materials to the Approved Recyclable Materials Processing Facility for Processing.

Containers: Carts, Bins
Container Sizes: 32-, 64-, and 96-gallon Carts (or comparable size approved by the City); and 1-, 2-, 3-, 4-, 5-, 6-, and 8-cubic yard Bins as requested by Customer Service Frequency: Up to six (6) times per week but not less than one (1) time per week (as requested by Customer), unless the Customer has received a Collection frequency waiver for Recyclable Materials in accordance with Section 4.12.2, in which case service frequency shall be not less than one (1) time per fourteen (14) days.

Service Location: Curbside or other Customer-selected service location at the Multi-Family Premises.

Acceptable Materials: Recyclable Materials
Prohibited Materials: Organic Materials, Solid Waste, Excluded Waste Additional Service: Special pick-ups requested by a Customer, on days other than their regularly scheduled Collection day, will be available at the Rate approved by the City for additional Recyclable Materials Container service at a given Container size. Such additional picks-ups can be scheduled equating to up to six (6) days per week total service.

Other Requirements: Contractor shall offer to all Multi-Family Dwelling Units personal recycling totes as part of Move-in-Kits designed to contain Recyclable Materials prior to placement in the Recyclable Materials Container. Personal recycling tote specifications shall be approved by the City prior to ordering and distribution.

Contractor shall accept household batteries and CFLs in the Recyclable Materials program, provided that those batteries and CFLs have been collected by the property manager in a centrally located collection Container, and subsequently packaged in a sealed, clear plastic bag and placed in mutually determined collection location for Collection. The Customer must notify the Contractor in advance according to Contractor’s standard procedures before setting out batteries and CFLs (such procedures subject to approval by the City Contract Manager). Other Household Hazardous Waste shall be handled in accordance with Exhibit B2, Section 6.

Contractor may refuse to Collect a Recyclable Materials Container in accordance with Section 4.10.3 of this Agreement.

Contractor shall provide Collection service in accordance with Section 5.3.

2. ORGANIC MATERIALS COLLECTION
Contractor shall Collect Organic Materials in Contractor-provided Carts not less than one (1) time per week from Multi-Family Customers and Transport all Organic Materials to the Approved Organic Materials Processing Facility for Processing.

Containers: Carts, Bins
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EXHIBIT B2

MULTI-FAMILY RESIDENTIAL SERVICES
December 3, 2020 Page B2-2 City of Cupertino/Recology Franchise Exhibit B2 Container Sizes: 24- 32-, 64-, and 96-gallon Carts (or comparable size approved by the City); and, 1-, 2-, 3-, and 4-cubic yard Bins as requested by Customer.

Service Frequency: Up to six (6) times per week but not less than one (1) time per week, as requested by the Multi-Family Customer.

Service Location: Curbside or other Customer-selected service location at the Multi-Family Premises.

Acceptable Materials: Organic Materials (including Yard Trimmings, Food Waste, and Food-Soiled Paper).

Prohibited Materials: Recyclable Materials, Solid Waste, Excluded Waste Additional Service: Special pick-ups requested by a Customer, on days other than their regularly scheduled Collection day, will be available at Rate approved by the City for additional Organic Material Container service at a given Container size. Such additional picks-ups can be scheduled equating to up to six (6) days per week total service.

Other Requirements: Contractor will contact each building’s Owner or property manager to inform them of the availability of kitchen containers for Food Scraps. Upon request by the building’s Owner or Property Manager, Contractor shall provide to all MultiFamily Dwelling Units in the building, kitchen containers designed to contain Food Scraps prior to placement in the Customer’s Organic Materials Container.

Contractor shall not be required to provide more than one (1) kitchen container per Multi-Family Dwelling Unit during the Term, unless there is a change in the unit’s occupancy. Kitchen container specifications shall be approved by the City prior to ordering and distribution.

Contractor shall provide Collection service in accordance with Section 5.3.

Contractor may refuse to Collect an Organic Materials Container in accordance with Section 4.10.3 of this Agreement.

3. SOLID WASTE COLLECTION
Contractor shall Collect Solid Waste placed in Contractor-provided Containers not less than one (1) time per week from Multi-Family Customers and Transport all Solid Waste to the Designated Disposal Facility for Disposal.

Containers: Carts, Bins
Container Sizes: 24-, 32-, 64-, and 96-gallon Carts (or comparable size approved by the City); and 1-, 2-, 3-, 4-, 5-, 6-, and 8-cubic yard Bins as requested by Customer.

Service Frequency: Up to six (6) times per week but not less than one (1) time per week, as requested by Customer, unless the Customer has received a Collection frequency waiver for Solid Waste in accordance with Section 4.12.2, in which case service frequency shall be not less than one (1) time per fourteen (14) days.

Service Location: Curbside or other Customer-selected service location at the Multi-Family Premises.

Acceptable Materials: Solid Waste
Prohibited Materials: Recyclable Materials, Organic Materials, Excluded Waste 228
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EXHIBIT B2

MULTI-FAMILY RESIDENTIAL SERVICES
December 3, 2020 Page B2-3 City of Cupertino/Recology Franchise Exhibit B2 Additional Service: Special pick-ups requested by a Customer, on days other than their regularly scheduled Collection day, will be available at the Rate approved by the City for additional Solid Waste Container service at a given Container size. Such additional picks ups can be scheduled equating to up to three (3) days per week total service.

Other Requirements: Contractor shall provide Collection service in accordance with Section 5.3.

4. ON-CALL BULKY ITEM AND BIN-BY-THE-DAY COLLECTION
Contractor shall Collect Bulky Items from Multi-Family Customers upon request made by the property manager. Multi-Family Customers may request Bin-by-the-Day service through the property manager at a City-approved Rate. Contractor shall Transport all Collected materials to the appropriate Approved Facility for Processing or Disposal.

Containers: 4-, 6-, 7-cubic yards for Bin-by-the-Day service (or comparable sizes approved by the City).

Service Level: For Bulky Item Collection, up to two-hundred (200) pounds per item; total volume does not exceed two (2) cubic yards.

Property managers shall schedule on-call Bulky Item and Bin-by-the Day pickups for their Occupants.

Service Frequency: For Bulky Item Collection, up to two (2) times per year per Multi-Family Dwelling Unit at no additional charge.

For Bin-by-the-Day, on-call for a period not to exceed seven (7) consecutive calendar days.

Service Location: Curbside or other agreed-upon service location at the Multi-Family Premises.

Acceptable Materials: For Bulky Item Collection: Bulky Items For Bin-by-the-Day Service: Recyclable Materials, E-Waste, U-Waste, Yard Trimmings, and Solid Waste
Prohibited Materials: Food Scraps, Hazardous Waste, abandoned automobiles, trees, Excluded Waste or any single item (e.g., large auto parts, etc.) that exceeds fifty (50) pounds in weight.

Additional Service: Contractor shall provide up to two (2) Bulky Item Collections per year to each Multi-Family Dwelling Unit at no additional cost, and may charge the Rate approved by the City for additional Bulky-Item service.

Multi-Family Customers may request Bin-by-the-Day service at a City-approved Rate.

Other Requirements: Contractor shall Collect Yard Trimmings separately from acceptable materials described in this Exhibit B2, Section 4. Upon Customer request, Contractor shall provide separate On-Call Collection service for Yard Trimmings. Contractor shall Collect up to six (6) thirty-two (32) gallon Carts, or the equivalent volume of paper garden bags, of Yard Trimmings per scheduled on-call Yard Trimmings Collection service. Contractor shall Transport Yard Trimmings to the Approved Organic Materials Processing Facility. Contractor shall not Dispose of materials Collected through the on-call Bulky Item Collection program unless the materials cannot be Reused, Recycled, or Processed. Contractor shall Process and Dispose of Bulky Items Collected from Customers in accordance with the following hierarchy: (1) 229
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EXHIBIT B2

MULTI-FAMILY RESIDENTIAL SERVICES
December 3, 2020 Page B2-4 City of Cupertino/Recology Franchise Exhibit B2 Reuse as is (where energy efficiency is not compromised); (2) disassemble for Reuse or Recycling; (3) Recycle or Compost; and if none of the other options are practicable, (4) Dispose.

5. HOLIDAY TREE COLLECTION
Annually, commencing the day after December 25 and four (4) weeks thereafter, or as otherwise approved by the City Contract Manager, Contractor shall Collect holiday trees from Multi-Family Customers at a mutually agreed upon time, date, and designated Collection location, as arranged by Contractor and each Multi-Family property owner or manager. Contractor shall offer each Multi-Family property owner or manager the option to receive holiday tree Collection service in Bins or Drop Boxes, provided by Contractor for such service. Contractor shall also offer each Multi-Family property owner or manager the option to receive un-containerized holiday tree Collection service Curbside, or from designated location at the Multi-Family Premises mutually agreed upon between Contractor and the property owner or manager.

Holiday trees must be removed from stands; cut into lengths no longer than six (6) feet; and, be free of ornaments, garlands, tinsel, or other decorations. Contractor shall not be required to Collect holiday trees that do not meet the aforementioned criteria and/or are not placed at the agreed upon Collection location and time period. In accordance with Section 4.10.3, Contractor shall affix a Non-Collection Notice to any non-Collected Bin or Drop Box intended for the Collection of holiday trees. Contractor shall deliver all Collected holiday trees to the Approved Organic Materials Processing Facility for Processing.

Holiday tree Collection services shall be provided at no additional cost to the City or the Customer.

6. HOUSEHOLD HAZARDOUS WASTE
Household Hazardous Waste (HHW) shall be handled through the Santa Clara County HHW Drop-Off Program. Contractor is required to promote County HHW Programs in accordance with Exhibit C.

Contractor and the City shall encourage use of extended producer responsibility programs such as PaintCare and Med-Project, where appropriate.
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EXHIBIT B3:

COMMERCIAL SERVICES
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EXHIBIT B3

COMMERCIAL SERVICES
December 3, 2020 Page B3-1 City of Cupertino/Recology Franchise Exhibit B3

1. RECYCLABLE MATERIALS COLLECTION
Contractor shall Collect Recyclable Materials placed in Contractor-provided Containers from Commercial Customers and Transport all Recyclable Materials to the Approved Recyclable Materials Processing Facility for Processing.

Containers: Carts, Bins, Drop Boxes, and Compactors
Container Sizes: 32-, 64-, and 96-gallon Carts (or comparable size approved by the City); 1-, 2-, 3-, 4-, 5-, 6-, and 8- cubic yard Bins;
2-, 3-, and 4-cubic yard Bin Compactors, and,
8-, 16, 20-, 25-, 30-, and 40- cubic yard Drop Boxes; or Customer owned Compactors as requested by Customer.

Service Frequency: Up to six (6) times per week (Monday through Saturday), but not less than one (1) time per week, as requested by Customer unless the Customer has received a Collection frequency waiver for Recyclable Materials in accordance with Section

4.12.2, in which case service frequency shall be not less than one (1) time per fourteen (14) days. Seven (7) day Collection service (Monday through Sunday) shall be available if Customer gives at least one (1) week advanced notice to Contractor.

Service Location: Curbside or other Customer-selected service location at the Commercial Premises.

Acceptable Materials: Recyclable Materials
Prohibited Materials: Organic Materials, Solid Waste, Excluded Waste Additional Service: Special pick-ups requested by a Customer, on days other than their regularly scheduled Collection day, will be available at the Rate approved by the City for additional Recyclable Materials Container service at a given Container size. Such additional picks-ups can be scheduled equating to up to six (6) days per week total service.

Other Requirements: Contractor may refuse to Collect a Recyclable Materials Container in accordance with Section 4.10.3 of this Agreement.

Contractor shall provide Collection service in accordance with Section 5.3.

2. ORGANIC MATERIALS COLLECTION
Contractor shall Collect Organic Materials placed in Contractor-provided Containers not less than one (1) time per week from Commercial Customers and Transport all Organic Materials to the Approved Organic Materials Processing Facility for Processing.

Containers: Carts, Bins, Compactors
Container Sizes: 24-, 32-, 64-, and 96-gallon Carts (or comparable size approved by the City); 1-, 2-, 3-, and 4-cubic yard Bins; and Customer-owned Compactors as requested by Customer.

Service Frequency: Up to six (6) times per week, but not less than one (1) time per week, as requested by Customer. Seven (7) day Collection service (Monday through Sunday) shall be available if Customer gives at least one (1) week advanced notice to Contractor.

Service Location: Curbside or other Customer-selected service location at the Commercial 232
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December 3, 2020 Page B3-2 City of Cupertino/Recology Franchise Exhibit B3 Premises.

Acceptable Materials: Organic Materials (including Yard Trimmings, Food Scraps, and Food-Soiled Paper).

Prohibited Materials: Recyclable Materials, Solid Waste, Excluded Waste Additional Service: Special pick-ups requested by a Customer, on days other than their regularly scheduled Collection day, will be available at the Rate approved by the City for additional Organic Materials Container service at a given Container size. Such additional picks-ups can be scheduled equating to up to six (6) days per week total service.

Other Requirements: Contractor may refuse to Collect an Organic Materials Container in accordance with Section 4.10.3 of this Agreement.

Contractor shall provide Collection service in accordance with Section 5.3.

3. SOLID WASTE COLLECTION
Contractor shall Collect Solid Waste placed in Contractor-provided Containers not less than one (1) time per week from Commercial Customers and Transport all Solid Waste to the Designated Disposal Facility for Disposal. Solid Waste Collection services shall be provided to Commercial Customers by subscription.

Containers: Carts, Bins, Drop Boxes, Compactors.

Container Sizes: 24-, 32-, 64-, and 96-gallon Carts (or comparable size approved by the City); 1-, 2-, 3-, 4-, 5-, 6-, and 8- cubic yard Bins;
2-, 3-, and 4-cubic yard Bin Compactors, and,
8-, 16-, 20-, 25-, 30-, and 40- cubic yard Drop Boxes; or Customer owned Compactors as requested by Customer.

Service Frequency: Up to six (6) times per week but not less than one (1) time per week, and unless a waiver has been granted pursuant to Section 4.12.2, as requested by Customer.

Service Location: Curbside or other Customer-selected service location at the Commercial Premises.

Acceptable Materials: Solid Waste
Prohibited Materials: Recyclable Materials, Organic Materials, Excluded Waste Additional Service: Special pick-ups requested by a Customer, on days other than their regularly scheduled Collection day, will be available at the Rate approved by the City for additional Solid Waste Container service at a given Container size. Such additional picks-ups can be scheduled equating to up to six (6) days per week total service.

Other Requirements: Contractor shall provide Collection service in accordance with Section 5.3.

4. BIN-BY-THE-DAY SERVICE
Upon Customer request, Contractor shall Collect Recyclable Materials, Organic Materials, Solid Waste, and other materials described herein from Commercial Customers. Contractor shall Transport all Collected materials to the appropriate Approved Facility for Reuse, Processing, or Disposal. Contractor shall provide such service to Commercial Customers at the Rate approved by the City for Bin-by-the-Day service at a given Container size.

Containers: 1-, 2-, 3-, 4-, 5-, 6-, and 8- cubic yard Bins. 233
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EXHIBIT B3

COMMERCIAL SERVICES
December 3, 2020 Page B3-3 City of Cupertino/Recology Franchise Exhibit B3 Service Frequency: On-call for a period not to exceed seven (7) consecutive calendar days.

Service Location: Curbside or other agreed-upon service location at the Commercial Premises; additional charges may apply if the service location is greater than twenty-five (25) feet from the nearest point that a Collection vehicle can access from a paved surface.

Acceptable Materials: Recyclable Materials, E-Waste, U-Waste, Yard Trimmings, and Solid Waste Prohibited Materials: Food Scraps, Hazardous Waste, abandoned automobiles, trees, Excluded Waste or any single item (e.g., large auto parts, etc.) that exceeds two-hundred (200) pounds in weight.

Other Requirements: Contractor shall provide the service to the Customer within one (1) Working Day of the Customer’s requested service date, as mutually agreed upon by the Customer and Contractor.

5. COMMERCIAL CONTAINER SHARING
In special circumstances, for Customers with significant space limitations and upon approval by the City Contract Manager and Contractor, Contractor shall permit Commercial Customers to share Discarded Materials service with other geographically proximate Commercial Customers. Such shared service shall be performed and billed as if it were being provided to a single Customer, with the exception that Contractor shall require all Customers sharing a single service account to identify a “Primary Responsible Party”, which will serve as the singular point of contact for communication and billing from Contractor and the City, along with a list of all addresses with which the Primary Responsible Party will share service.

6. CONSTRUCTION & DEMOLITION MATERIAL COLLECTION
A. General. Contractor shall Collect C&D from Customers that directly subscribe to its Collection services. Contractor shall charge Customers for C&D Collection services at City-approved Rates.

B. Acceptable Material. Contractor may Collect C&D from construction, remodeling, repair, or demolition operations. C&D may be Source-Separated mixed materials or Source Separated individual materials (e.g., wood-only or metal-only loads). C&D may contain only de minimis amounts of Solid Waste generated at the C&D Collection Sites.

C. Transport and Processing. Contractor shall Deliver C&D to the Designated C&D Processing Facility for Processing.

D. Container Types and Collection Frequency. Contractor shall offer Customers various size Drop Boxes for Collection of C&D, subject to review and approval by the City Contract Manager. C&D Containers shall conform to all requirements of Section 5.6 of this Agreement. After the Drop Box has been delivered, Contractor shall provide requested Collection of C&D materials within two (2) Working Days of a Customer request.

E. Education Information. Contractor shall provide Customers with City-approved educational information on best practices for C&D Recycling and Reuse and proper separation of materials for Collection as described in Section 4.7. As directed by the City, Contractor shall label or install signs on Bins and Drop Boxes identifying allowable and non-allowable materials for Collection in the C&D Containers. Signs shall be a minimum size of one (1) foot by two (2) feet and lettering on 234
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December 3, 2020 Page B3-4 City of Cupertino/Recology Franchise Exhibit B3 signs shall be a minimum of three (3) inches high. Signs shall be affixed to the front and both sides of each Bin and Drop Box.

F. Record Keeping and Reporting. Contractor shall submit C&D Tonnage information and other data pursuant to Exhibit D of the Agreement.
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EXHIBIT B4:

CITY SERVICES
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EXHIBIT B4

CITY SERVICES
December 3, 2020 Page B4-1 City of Cupertino/Recology Franchise Exhibit B4

1. COMMERCIAL CUSTOMER SERVICES TO CITY FACILITIES
Contractor shall Collect Recyclable Materials, Organic Materials, and Solid Waste from City facilities in the same manner as those services are provided to Commercial Customers. Contractor shall initially provide service to all existing City facilities at the locations and Service Levels set forth in Exhibit B5. City may change Service Levels to the facilities identified in Exhibit B5, and/or may add service to any future City facilities. Contractor shall provide such changed or added service at no cost to City, provided that the total cost of servicing all City facilities does not exceed by more than ten percent (10%) the total cost of servicing the City facilities identified in Exhibit B5 at the Service Levels identified in Exhibit B5. Such cost comparison shall be calculated using the Rates in effect at the time the comparison is made. Any services provided in excess of the aforementioned cap shall be charged to City at the then-applicable Rates. If such amounts are not paid by City, Contractor shall be entitled to recover them as an “other adjustment” in the next annual Rate adjustment. The two hundred sixty (260) temporary Drop Box hauls provided for in Exhibit B5, and the eight (8) City-sponsored or hosted special events provided for in Section 4.6, are excluded from the aforementioned cost comparison and cap.

2. EMERGENCY SERVICES
Contractor shall provide emergency services (i.e., special collections, Transport, Processing, and Disposal) at the request of the City Contract Manager in the event of major accidents, disruptions, or natural calamities guided by the City of Cupertino’s Disaster Debris Plan, as it may be adopted and amended from time to time during the Term of this Agreement. Contractor shall be capable of providing emergency services within twenty-four (24) hours of notification by the City Contract Manager or as soon thereafter as is reasonably practical in light of the circumstances. For any services that exceed the scope of services under this Agreement, Contractor shall be entitled to compensation at the emergency service Rates set forth in Exhibit E to of this Agreement. The City shall have discretion in the method of such compensation between direct payments by the City and allowing such costs to be included in the adjustment of Rates for the following Rate Period. The City reserves the right to engage third-party haulers for the purpose of providing additional services to address emergencies.

3. CITY-WIDE RECYCLING EVENTS
Contractor shall provide four (4) free City-Wide Recycling Events (Environmental Days) per year, including the staffing, Disposal, and Transportation of all acceptable Recyclable Materials delivered by residents as requested by the City Contract Manager. The City and Contractor shall mutually agree on the location for the event(s). If not paid directly by City, Contractor shall be entitled to recover the agreed cost on a passthrough basis as an “other adjustment” in the next annual Rate adjustment. Contractor shall procure all necessary permits for the events and shall handle all Recyclable Materials received in a manner that will ensure the maximum amount practicable will be Recycled, Composted, or otherwise Diverted from the landfill.

A. Shredding. Contractor shall accept at least three (3) 12” x 12” x 16” boxes (or equivalent volume) per household of sensitive documents for destruction and shredding on site at the event.

Contractor shall provide, or contract with another firm to provide, a modern, high-volume mobile shredder for this service.

B. Accepted Recyclable Materials. Contractor shall accept from residents of the City, and keep separate for Recycling, the following materials:
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December 3, 2020 Page B4-2 City of Cupertino/Recology Franchise Exhibit B4

1. E-waste, such as computer monitors, TVs, computers, VCRs, and other computer related electronics;

2. U-Waste, such as compact fluorescent bulbs, fluorescent tube bulbs, batteries, and mercury thermometers;

3. Clean (unpainted and untreated) dimensional lumber;

4. Scrap metal items that do not exceed forty (40) pounds in weight and are not more than three (3) feet long in any dimension;

5. White goods, such as washers, dryers, water heaters, refrigerators, ranges, and dishwashers that do not contain Freon;

6. Up to one covered pickup truck full of Residential C&D per household;

7. Up to thirty (30) gallons per household of concrete, asphalt, rock, and dirt;

8. Usable functioning appliances, furniture, housewares, or toys (to be donated to a non-profit service organization);

9. Usable textiles (to be donated to a non-profit service organization); and,

10. All other Recyclable Materials.

C. Accepted Compostable Materials. Contractor shall accept from residents of the City, and keep separate for Composting, the following materials:

1. Unpainted and untreated wood; and,

2. Yard Trimmings.

D. Non-Acceptable Materials. Contractor shall not be required to accept the following materials during City-Wide Recycling events:

1. Tree branches which are more than six (6) inches in diameter;

2. More than thirty (30) gallons per household of concrete, asphalt, rock, and dirt;

3. More than one (1) pickup truck full of Residential C&D per household;

4. Tires;

5. Hazardous materials including Used Motor Oil and Filters; and,

6. Any other materials not included in the list above.
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December 3, 2020 Page B4-3 City of Cupertino/Recology Franchise Exhibit B4

4. COATS FOR KIDS
For Residential Customers, Contractor shall run its “Coats for Kids” program in the fall or winter of every year as directed by the City. Contractor shall promote this program in accordance with Exhibit C.

Contractor shall launder the coats and donate them to local non-profit organizations to keep children and adults in need warm through the winter months. Contractor shall submit to the City a summary report of the “Coats for Kids” program in the annual report in accordance with Exhibit D.

5. PROVISION OF COMPOST AND MULCH PRODUCT
A. Bulk Compost. Contractor shall make available to the City bulk Compost produced from Organic Materials Collected from Single-Family Customers (among other sources) at an Approved Processing Facility for use by residents and for use in City parks and facilities. Contractor shall provide one thousand (1,000) cubic yards per Agreement year at no additional cost to the City or Customers, and an additional one thousand (1,000) cubic yards per Agreement year at a twentyfive percent (25%) discount off market price. The City will notify Contractor as to the City’s needs for delivery of finished Compost throughout the Agreement year. Contractor shall deliver Compost within five (5) Business Days of a request of the City to City facilities, parks, and/or other City-approved locations within City limits and Contractor shall be entitled to recover it on a passthrough basis as an “other adjustment” in the next annual Rate adjustment. If the City does not take delivery of Compost made available by Contractor within thirty (30) calendar days of the end of the Agreement year, Contractor’s obligation to provide Compost for said Agreement year shall be deemed to be satisfied. Any of the bulk Compost allotment that is not requested by the City during the Agreement year shall not carry over into the next Agreement year. In accordance with Exhibit D, Contractor shall provide the City with Compost lab results. The Compost will be “Certified Compost” under the U.S. Composting Council’s Seal of Testing Assurance (STA) program.

B. Bulk Mulch. If the Approved Organic Materials Processing Facility produces Mulch that meets the requirements of 14 CCR Section 18993.1(f)(4), then City may opt to receive Mulch instead of Compost (or a combination of Mulch and Compost), subject to the same volume and pricing limits stated in this Exhibit B4, Section 5.A above. The Mulch shall be for use in City parks and facilities.

The City will notify Contractor as to the City’s needs for delivery of finished Mulch throughout the Agreement year. Contractor shall deliver Mulch within five (5) Business Days upon request of the City to any accessible location within City limits, and the cost of delivery shall either be paid by City, or Contractor shall be entitled to recover it on a pass-through basis as an “other adjustment” in the next annual Rate adjustment. If the City does not take delivery of Mulch made available by Contractor within thirty (30) calendar days of the end of the Agreement year, Contractor’s obligation to provide Mulch for said Agreement year shall be deemed to be satisfied. Any of the bulk Mulch allotment that is not requested by the City during the Agreement year shall not carry over into the next Agreement year.

C. SB 1383 Procurement. Contractor agrees that all Compost or Mulch provided through this Agreement shall comply with the requirements of SB 1383, 14 CCR Section 18993.1(f)(1) (as to Compost) and 18993.1(f)(4) (as to Mulch).

In the event that the City does not use its free allocation of bulk Compost under Section A, Contractor shall act as the City’s broker for the remaining material and make reasonable commercial efforts to either: (a) sell that Compost (or an equivalent volume of Mulch) to other 239
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December 3, 2020 Page B4-4 City of Cupertino/Recology Franchise Exhibit B4 potential users on the City’s behalf (in which case Contractor may retain the proceeds); or, (b) donate that Compost (or an equivalent volume of Mulch) to a non-profit user selected by Contractor, or to any other recipient mutually-agreed with City.

6. NEWS MEDIA RELATIONS.

Contractor shall notify the City Contract Manager by e-mail of all requests for news media interviews related to the Collection services program within twenty-four (24) hours of Contractor’s receipt of the request. Before responding to any inquiries involving controversial issues or any issues likely to affect participation or Customer perception of services, Contractor will discuss Contractor’s proposed response with the City Contract Manager.

Copies of draft news releases or proposed trade journal articles related to the provision of Collection services under this Agreement shall be submitted to the City for prior review and approval at least five (5) Business Days in advance of provision to such Persons, except where Contractor is required by any law or regulation to submit materials to any regulatory agency in a shorter period of time, in which case Contractor shall submit such materials to the City simultaneously with Contractor’s submittal to such regulatory agency.

Copies of articles resulting from media interviews or news releases shall be provided to the City within five (5) Business Days after publication.

7. WASTE GENERATION, CHARACTERIZATION, AND PILOT STUDIES.

Contractor acknowledges that the City, CalRecycle, or other governmental agencies may wish to perform generation and characterization studies periodically with respect to materials covered under this Agreement. Contractor agrees to cooperate with the City and its agents that may perform studies and data collection exercises, as needed, to determine weights, volumes, and composition of materials generated, Disposed, Diverted or otherwise Processed. Contractor shall assist the City and its agents in such efforts at no additional compensation, provided such assistance does not interfere with Contractor’s operations and is at no or de minimis cost to Contractor. Such assistance shall include allowing the City and its agents to perform generation and characterization studies at the Approved Transfer Facility at no additional compensation, at mutually agreed times. Contractor shall work with the City’s agents to provide a waste characterization plan for the City’s approval that details methods, proposes material types to study, dates and times of studies, and number of sites to study in each sector.

If the City requires Contractor to directly participate in the study by conducting, managing, analyzing, and/or providing a report of the results, Contractor and the City shall mutually agree on the scope of services to be provided by Contractor and the amount of compensation, if any, that the City will pay to Contractor for such participation. In any event, Contractor shall permit and in no way interfere with the Collection and handling of the subject materials by City or other City-approved Persons for such purposes.

Contractor acknowledges that the County, in coordination with the City, is required by SB 1383 to conduct Organic Waste and Edible Food capacity planning studies. Contractor shall provide information to the City as reasonably requested by City for the City’s participation in such capacity planning studies. This information may include, but is not limited to, providing information regarding existing and potential new or expanded capacity in Contractor’s operations for the Collection, Transport, or Processing of Recyclable Materials and Organic Materials; and any other information reasonably requested by the City or County 240
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December 3, 2020 Page B4-5 City of Cupertino/Recology Franchise Exhibit B4 for purposes of the study. Contractor shall respond to any request for information from the City within thirty (30) days, unless another timeframe is otherwise specified or authorized by the City.

Contractor acknowledges that the City may wish to conduct and/or participate in pilot studies related to the Customers and materials that are the subject of this Agreement. If the City requires Contractor to participate in any such a pilot study, Contractor and the City shall mutually agree on the scope of services to be provided by Contractor and the amount of compensation, if any, that the City will pay to Contractor for such participation. In any event, Contractor shall permit and in no way interfere with the Collection and handling of the subject materials by City or other City-approved Persons for such purposes. 241
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EXHIBIT B5:

CITY FACILITY SERVICE LEVELS, LOCATIONS, AND

SPECIAL EVENTS
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EXHIBIT B5

CITY FACILITY SERVICE LEVELS, LOCATIONS, AND SPECIAL EVENTS December 3, 2020 Page B5-1 City of Cupertino/Recology Franchise Exhibit B5 Contractor shall Collect Recyclable Materials, Organic Materials, and Solid Waste, from City facilities in the same manner as those services are provided to Commercial Customers, and shall provide designated personnel in accordance with Section 5.7.D of this Agreement. Contractor shall provide service to all existing City facilities identified in this Exhibit as well as any future City facilities established after the Commencement Date.

Contractor shall provide these services at no additional cost to the City, subject to Section 1 of Exhibit B4.

FACILITY

NAME ADDRESS

SERVICE LEVEL/

FREQUENCY
TRASH

SERVICE LEVEL/

FREQUENCY

RECYCLING

SERVICE LEVEL/

FREQUENCY

GREEN WASTE

DROP BOX

ON-CALL
City Hall and Community Hall
10300 Torre Ave. 1-3yd
3x/week
1-4yd 1x/week
1-3yd 1x/wee
Blackberry Farm 21975 San Fernando
Ave
4-3yd 2x/week
3- 4yd 1x/week
1-4yd On-Call 15-96Gal Cart/1x/week
Library 10400 Torre Ave. 1-3yd
3x/week
1-4yd 5x/week
1-3yd 1x/week
Quinlan Community Center
10185 Stelling Rd. North
1x 4yd 3x/week
1-4yd 3x/week
1-4yd 2x/week
Senior Center 21251 Steven Creek
Blvd
1-3yd 3x/week
1-3yd, 1x/week
1-2yd 2x/week
Sports Center 21111 Stevens Creek
Blvd.
1-1.5yd, 3x/week 1-1.5yd
3x/week
1-1.5yd 1x/week
All City parks 2-40 yds for leaf
season
Public Works Service Center
10555 Mary Ave 1-3yd
3x/week
2- 4yd 1x/week
1-1.5yd, 1x/week
2-8yd,1-26yd,1-40yd, 2-16yd
Traffic Operations Center
10981 Franco Ct. 2-1.5yd, 1x/week None currently None currently Stocklmeir Property 22120 Stevens Creek
Blvd
1-96Gal Cart /x/week
1-64Gal Cart 1/x/week
1x 96Gal Cart 1/x/week
City of Cupertino 10301 Byrne Ave 1- 32Gal Cart
1/x/week
1-64Gal Cart 1x/week
1-96Gal Cart 1/x/week
McClellan Ranch Preserve and
22221 McClellan Rd. 2-64 gallon
1x/week
1-16yd, 1-20yd-city owned
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EXHIBIT B5

CITY FACILITY SERVICE LEVELS, LOCATIONS, AND SPECIAL EVENTS December 3, 2020 Page B5-2 City of Cupertino/Recology Franchise Exhibit B5

FACILITY

NAME ADDRESS

SERVICE LEVEL/

FREQUENCY
TRASH

SERVICE LEVEL/

FREQUENCY

RECYCLING

SERVICE LEVEL/

FREQUENCY

GREEN WASTE

DROP BOX

ON-CALL
Environmental Education Center Monta Vista Recreation Center 22601 Voss Ave. 1- 6yd, 1x/week 1-4yd
1x/week
None currently
Compost Site 1200 Stevens
Canyon Rd.
1- 3yd 1x/week seasonally end of March – mid Nov
1 -3yd, 1x/week
None currently
In addition to regular scheduled Collection services, Contractor shall provide, upon request, two hundred sixty (260) temporary Drop Box Collection services per year to all City facilities (including but not limited to those listed above) at no additional cost to the City. Contractor shall deliver Drop Boxes within one (1) Working Day of the City’s request. Contractor shall Collect, empty, and return Drop Boxes within one (1) Working Day of the City’s request. Contactor shall remove and not return Drop-Boxes within one (1) Working Days of the City’s request. Contractor shall deliver Source Separated Yard Trimmings Collected from City facilities, parks, and clean-up operations in such Drop Boxes to the Approved Organic Materials Processing Facility. Contractor shall provide special event services pursuant to Section 4.6 of the Agreement. Listed below are the current and planned City facilities and special events to receive Collection services. Contractor acknowledges that the list of special events is subject to change per City direction but will not exceed the annual number of special events provided in Section 4.6.

City of Cupertino Anticipated Special Events*
Event Name Estimated
Annual Date
Location Container Size /
Type
Container Number Other Services/ Specifications
National River
Clean Up
May &
September
Creekside
Park
96 gallon 3-MSW,3-RYC and
1-ORG
None
4th of July July 3rd Creekside
Park
FEL 1-6yd MSW, 1-6yd
RYC and 1-3yd
ORG
Addition Clear Stream Trios as
needed
Earth
Day/Arbor
Day
April City Hall FEL 1-3yd MSW,1-4yd
RYC and 1-3yd
ORG
Use existing FEL bins on site.

May add additional bins if
needed along with Clear Stream
Trios
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EXHIBIT C:

PUBLIC EDUCATION AND OUTREACH

REQUIREMENTS
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EXHIBIT C

PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-1 City of Cupertino/Recology Franchise Exhibit C

1. General Administration
The City places importance on effective public outreach and education in helping residents and businesses fully understand options for and benefits of source reduction, Reuse, Recycling, and Composting. General provisions for public education and outreach are as follows:

A. Prior to the Commencement Date and by November 1 of each following year during the Term of this Agreement, Contractor shall develop and submit an annual public education plan to promote the programs designed by the City and performed by Contractor under this Agreement. Each public education plan shall specify the target audience for services provided, include upcoming promotions for ongoing and known special events, identify program objectives, individual tasks, public education materials to be distributed, opportunities for expanded partnerships, a timeline for implementation, and an itemized description of how Contractor’s annual public education budget (described in subsection (F) of this Exhibit C-1) will be spent. The City Contract Manager shall be permitted to provide input on each annual public education plan, and the plan shall not be finalized or implemented without approval of the City Contract Manager, not to be unreasonably withheld or delayed. Each plan’s implementation success shall be measured according to the deadlines identified and products distributed. Contractor shall meet with the City Contract Manager to present and discuss the plan, review the prior year’s activities (including sponsorships and services provided to City-sponsored events) and determine whether community activities and the provision of services to the City reflect the needs of City staff and the City Council. The City Contract Manager shall be allowed up to thirty (30) calendar days after receipt to review the plan and request reasonable modifications. The City Contract Manager may request, and Contractor shall not unreasonably deny, reasonable modifications to be completed prior to approving the plan. Contractor shall have up to fifteen (15) Business Days to revise the plan in response to any requested changes by the City Contract Manager. Any further delays may result in Liquidated Damages as identified in Exhibit F.

B. Upon request from the City Contract Manager, City Contract Manager and Contractor’s Contract Manager shall meet up to one (1) time per month to discuss services, outreach, and educational campaigns and request changes or adaptations to the annual public education plan. The City will be responsible, in its sole discretion and subject to budgetary constraints, for preparing all public education materials contemplated by this Exhibit C, at City’s cost, and shall request that materials be reviewed by Contractor prior to production. If requested, Contractor shall review and comment on the materials ten (10) Business Days of request from the City.

C. All City facilities shall receive any and all public education and outreach materials and services provided to the Commercial sector. Contractor shall provide all printed public education materials to City offices and facilities to have available for the public that visits those facilities and shall replenish the materials as requested by the City Contract Manager.

D. Bill inserts shall be designed and produced by the City; and Contractor shall be responsible for printing and distributing the billing inserts to all Customers. Contractor shall provide electronic bill inserts (or separate email attachments) to Customers who are billed electronically, and paper bill inserts to Customers who receive paper bills. For Customers receiving electronic bills, Contractor agrees to distribute brochures, newsletters, or other information developed by the 247
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EXHIBIT C

PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-2 City of Cupertino/Recology Franchise Exhibit C City as attachments to Customer invoices. Electronic bill inserts/attachments must be readily available for the Customer to view upon receipt of the invoice (attachments shall not be provided as links). Upon City request for billing inserts, Contractor shall comply with such request during its next billing cycle for the targeted Customer group, if specified. Contractor shall perform this service with no additional requirement for compensation.

E. Contractor shall develop a website specific to its operations in the City, with a section specific to City programs and Customers, that will be used to post educational materials for download, highlight program successes, and provide Diversion statistics. Contractor’s City-specific website shall also include links to relevant web pages of the City’s website where further information can be found.

F. Notwithstanding any other provision, Contractor shall only be required to pay forty four thousand two hundred ninety-three dollars ($44,293) per Agreement year in out-of-pocket printing, shipping, mailing, and signage costs for City-approved public education and outreach materials, increased annually by CPI-U. City or Contractor shall be entitled to recover above reimbursement amount on a pass-through basis as an “other adjustment” in the next annual Rate adjustment.

2. Public Education and Outreach Team
To best achieve the highest possible level of public education and awareness, Contractor shall employ at least one (1) full-time Waste Zero Specialist staff member to coordinate and implement all public education and outreach activities required by this Agreement. Contractor’s Waste Zero Specialist shall spend one hundred percent (100%) of their time implementing public education, technical support, and outreach activities required by this Agreement, as provided in Section 4.7.

A. Waste Zero Specialist.

Contractor’s Waste Zero Specialist shall, at a minimum, perform the following tasks:

1. Meet no less than monthly with the City Contract Manager upon the request of the City Contract Manager and be readily available to discuss issues related to providing service as described in the Agreement;

2. Work to coordinate City program and educational activities with Contractor activities;

3. Increase efforts to promote Recycling in the community and particularly in local schools by visiting each school at minimum two (2) times per school year, recognizing that waste generated by schools in the City affects the City’s Diversion;

4. Upon City request, organize City staff ride-alongs with Contractor’s Collection drivers;

5. Prepare proposals and presentations to City entities;

6. Participate and represent Contractor in community activities;

7. Oversee Customer satisfaction of all program services, as described in Exhibit B to the Agreement;
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EXHIBIT C

PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-3 City of Cupertino/Recology Franchise Exhibit C

8. Coordinate and produce the annual education and outreach plan required by Section 1 of this Exhibit C to the Agreement;

9. Coordinate implementation of the annual public education plan;

10. Perform annual visits to confirm adequate service and proper sorting as required by Recycling and Organic Materials Processing laws and regulations for every Customer, other than SingleFamily Customers, by conducting “Diversion opportunity assessments” of Customer locations and facilities;

11. Manage follow-up Diversion opportunity assessments for businesses to conduct a more comprehensive investigation and educational process after the initial review;

12. Provide all Customers with appropriate educational information necessary to make informed, environmentally-forward decisions relative to waste reduction, Reuse, and Diversion activities.

13. Maximize the opportunity for initial and sustained program success by seeking to identify a "champion" (ideally a senior manager) at each Commercial and Multi-Family Premises who will serve as a primary contact and advocate for Diversion programs within the Customer’s organization;

14. Assist in planning service needs for special events and Large Venues with a focus on reducing the Disposal to landfill of materials resulting from such events or venues; and,

15. Assist in creating and distributing reports as required under this Agreement and/or requested by the City Contract Manager, as described in Article 6 and Exhibit D.

16. Educate and inform about SB 1383 and food rescue/donation.

17. Attend Santa Clara County RWRC Technical Advisory Committee meetings monthly and California Resource Recovery Association annual conference.

3. Curbside Supplemental Payments
Contractor shall apply for the State’s Curbside Supplemental Payment program in accordance with Section

7.6. 4. Sector-Specific Activities
The following tables present the public education and outreach activities to be performed by Contractor each Rate Period as minimum requirements under this Agreement. Each Customer Type faces unique Discarded Materials management opportunities and challenges; therefore, Contractor shall distribute targeted, sector-specific educational materials and perform outreach activities as described for each Customer Type.
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EXHIBIT C

PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-4 City of Cupertino/Recology Franchise Exhibit C Public Education and Outreach | All SectorsAll printed materials also to be posted to the Contractor’s website. The following tables present examples of general public education and outreach materials that Contractor shall produce for the benefit of all Customer types that receive Collection service from Contractor.

Activity Description Distribution/FrequencyTruck-Side Advertising Implement a City-wide truck-side advertising campaign to educate the public about Contractor’s programs under this Agreement. Campaign content and messaging shall be created by the City. Contractor shall produce and install truck-side signage for each side of each vehicle it operates in performing services under this Agreement.

Quarterly.

SB 1383 Mandatory Recyclable Materials and Organic Materials Outreach Commencing January 1, 2022, distribute City-produced outreach materials that include, at a minimum, the following information: 1. Information on the Generator’s requirements to properly Source Separate Recyclable Materials, Organic Materials, and Solid Waste and place such materials in appropriate Containers pursuant to this Agreement, SB 1383, and all other Applicable Law.

2. Information on methods for the prevention of Source Separated Recyclable Materials and Source Separated Organic Materials generation; managing Source Separated Organic Materials on Generator’s Premises through Composting or other landfill Disposal reduction activities allowed under 14 CCR Sections 18983.1 and 18983.2; sending Source Separated Organic Materials to Community Composting operations; and any other local requirements regarding Discarded Materials.

3. Information regarding the methane reduction benefits of reducing the Disposal of Source Separated Organic Materials, and the method(s) that Contractor uses to recover Source Separated Organic Materials.

At least annually.
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EXHIBIT C

PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-5 City of Cupertino/Recology Franchise Exhibit C Activity Description Distribution/Frequency

4. Information regarding how to recover Source-Separated Recyclable Materials and Source-Separated Organic Materials, and information related to recovering Source Separated Yard Trimmings from MultiFamily and Commercial Generators

5. Information related to the public health and safety and environmental impacts associated with the Disposal of Source Separated Organic Materials.

6. Information regarding the City’s Edible Food recovery program. 7. Information regarding Self-Hauling requirements, if applicable.

8. Any other Federal, State, or local requirements to properly separate Discarded Materials or other necessary actions by Generators, including applicable requirements of the Municipal Code, AB 341, AB 1826, and SB 1383. 251
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EXHIBIT C

PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-6 City of Cupertino/Recology Franchise Exhibit C Public Education and Outreach | Single-Family & Townhouse Education and Outreach Activities All printed materials also to be posted to the Contractor’s website.

Activity Description Distribution/FrequencyEnvironmental Services Guide Distribute a City-designed “how-to” guide on (including but not limited to) proper Recycling, Organics disposal, handling and Disposal of Household Hazardous Waste, E-Waste, and U-Waste directly to Single-Family residents. This guide shall include information on Collection methodologies, set-out instructions, set-out schedule, contact information, and acceptability and necessary preparation of materials for all Single-Family programs described in Exhibit B1. Contractor may arrange for distribution to each Dwelling Unit a flyer, door hanger, or other public education piece by coordinating with the Owner or property manager of the Premises.

Annually to each Single-Family and Townhouse Customer, and thereafter to all new Customers.

Move-In Kits Distribute Move-in Kits for new residents. As needed.Neighborhood Group & HOA Visits Visit homeowner associations and other neighborhood groups and associations to promote and explain the Recycling programs included in this Agreement.

At City Contract Manager or Customer request.

Quarterly Bill Insert Produce and Distribute a City-designed quarterly bill inserts that creatively informs Residential Customers about such topics as availability of Bulky Item pick-ups, home Composting, proper handling of Household Hazardous Waste, EWaste, U-Waste, Coats for Kids, and other environmental conservation topics, statistics, trends, and facts about programs performed under this Agreement (e.g., material Collected, Tonnage, year over year increase/decrease, markets for material Collected, what each material is Recycled into, and the importance of buying Recycled). Contractor’s annual public education plan shall define a theme for each quarterly bill insert.

One (1) time per quarter included in each mailed Customer bill and downloadable from electronic Customer bills.

Corrective Action Notices Produce and distribute a Single-Family Customer oriented Non-Collection Notice and Courtesy Notice for use in instances where the Customer includes Prohibited Container Contaminants in a Container or fails to properly prepare or set-out Containers.

As needed.
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EXHIBIT C

PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-7 City of Cupertino/Recology Franchise Exhibit C Activity Description Distribution/FrequencySeasonal Program Notifications Provide written notification to all Single-Family Customers advertising holiday tree Collections pursuant to Exhibit B1, Section 6, and any other seasonal or periodic program(s). The notification shall inform Customers of the schedule, acceptable materials and Prohibited Container Contaminants, and set-out requirements for the program.

At least fourteen (14) calendar days prior to event via direct mail.

Website Contractor shall prepare a “Single-Family Customer” section of its website where it will present Customers with “how-to” information for participating in Contractor-provided programs, including proper Container set-outs, and provide Single-Family Customers with links to click on for additional resources. All other Single-Family educational materials specified in this Section shall be posted on this section of Contractor’s website in PDF and/or video format. The website shall also publish the current Rates charged to Single-Family Customers within the City.

At least thirty (30) calendar days prior to Commencement Date. Updated no less than quarterly. 253
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EXHIBIT C

PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-8 City of Cupertino/Recology Franchise Exhibit C Public Education and Outreach | Multi-Family Education and Outreach Activities All printed materials also to be posted to the Company’s website.

Description Purpose Distribution/FrequencyEnvironmental Services Guide Distribute a City-designed “how-to” guide on (including but not limited to) proper Recycling, Organics disposal, handling and Disposal of Household Hazardous Waste, E-Waste, and U-Waste directly to MultiFamily Customers. This guide shall include information on Collection methodologies, set-out instructions, pick-up schedule, contact information, and acceptability and necessary preparation of materials for all Single-Family programs described in Exhibit B2. Contractor may arrange for distribution to each Dwelling Unit a flyer, door hanger, or other public education piece by coordinating with the Owner or property manager of the Premises.

Annually to each Multi-Family Dwelling Unit, and thereafter to all new Customers.

Technical Assistance: Diversion Opportunity Assessments Visit in person and offer Diversion opportunity assessments at least one (1) time annually to each and every Multi-Family Customer to meet with the property manager or Owner of Multi-Family Premises to promote Recyclable Materials and Organic Materials Collection and replenish Move-in Kits as needed by each Multi-Family Premises. Additionally, upon City or Customer request, Contractor shall perform complete walk-throughs of each facility/complex and discuss the internal and external layout with property manager; identify areas of generation, Collection, noting areas for improved infrastructure, placement, or educational materials. Contractor shall also identify major components of the waste stream by location and identify special wastes or Source-Separated materials potential. Contractor shall then make recommendations for waste reduction, contamination prevention, and Service Level or frequency modification. Finally, Contractor shall coordinate with Customer service and operations to implement Service Level changes, as needed.

Offer in-person meetings to each and every Multi-Family Customer conducted one (1) time per year, plus follow-up meetings with individual Customers, as needed or requested.

Move-In Kits Produce and Distribute Move-in Kits for property managers and Owners of Multi-Family Premises to provide to new Occupants.

Distributed during technical assistance Diversion opportunity assessments. 254
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EXHIBIT C

PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-9 City of Cupertino/Recology Franchise Exhibit C Description Purpose Distribution/FrequencyWorkshops Offer and respond to requests for on-site or online meetings and workshops. Contractor shall conduct workshops for Customers (when requested) that will show property managers and residents, in a handson interactive format, how to use the Recyclable Materials and Organic Materials program and will provide resources for additional information and support.

At Customer’s request.

Holiday Tree Collection Notification
Produce and distribute a City-designed written notification to each Multi-Family property manager/Owner advertising the availability of holiday tree Collection services. The notification shall inform managers of the schedule, accepted and prohibited materials, Collection method options, and set-out requirements for the program. The notification shall include Contractor contact information for Multi-Family Customers to contact to discuss schedule and designated Collection location. The format and content of the notification shall be approved by the City Contract Manager.

At least fourteen (14) calendar days prior to event via direct mail, e-mail, or inperson.

Website Contractor shall prepare a “Multi-Family Customer” section of its website where it will present “how-to” information for participating in Contractor-provided programs including proper Container set-outs, and provide Multi-Family Customers with links to click on for additional resources. All other Multi-Family educational materials specified in this Exhibit shall be posted on this section of Contractor’s website in PDF and/or video format. The website shall also publish the current Rates charged to Multi-Family Customers within the City. The website shall also provide property managers of Multi-Family Premises with anopportunity to request “Diversion opportunity assessments”, additional Move-in Kits, workshops, or additional education materials to provide to Occupants.

At least thirty (30) calendar days prior to Commencement Date. Updated no less than quarterly. 255
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EXHIBIT C

PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-10 City of Cupertino/Recology Franchise Exhibit C Description Purpose Distribution/FrequencySB 1383 Educational Materials for Employees/ Occupants Commencing January 1, 2022, Contractor shall provide Multi-Family property managers/Owners with City-produced public education materials, required by 14 CCR Section 18984.10, for their distribution to all employees, Contractors, Occupants, and Customers of the property or business. The public education materials shall include, at a minimum, information about Organic Materials recovery requirements and proper sorting of Discarded Materials. Multi-Family property managers/Owners may request these materials more frequently if needed to comply with the SB 1383 requirement to provide information to new Occupants before or within fourteen (14) days of occupancy. In this case, the Multi-Family property manager/owner may request delivery of materials by contacting Contractor’s Customer service department no later than two (2) weeks in advance of the date that the materials are needed.

One (1) time annually; or more frequently upon Customer request. 256
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EXHIBIT C

PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-11 City of Cupertino/Recology Franchise Exhibit C Public Education and Outreach | Commercial Education and Outreach Activities All printed materials also to be posted to the Company’s website.

Description Purpose Distribution/FrequencyEnvironmental Services Guide Produce and Distribute a City-designed “how-to” guide on (including but not limited to) proper Recycling, Organics disposal, handling and Disposal of Hazardous Waste, E-Waste, and U-Waste directly to Commercial Customers. This guide shall include information on Collection methodologies, set-out instructions, set-out schedule, contact information, and acceptability and necessary preparation of materials for all Commercial programs described in Exhibit B3.

By direct mail annually to each Commercial Customer, and thereafter to all new Customers. “How-to” Flyer: Recyclable Materials
Prepare and distribute a City-designed “how-to” brochure explaining the Recyclable Materials Collection programs for each general business type (restaurants, office/Commercial buildings, strip malls, and large Commercial businesses). Include waste reduction messaging and encourage reusable foodware.

One (1) time at beginning of the Agreement (20-30 days prior to contract start date) via direct mail. Thereafter, distributed during Diversion opportunity assessments. “How-to” Flyer: Organic Materials
Prepare and distribute a City-designed flyer describing the Organic Materials Collection services available and how to prepare Organic Materials for Collection for each general business type (restaurants, office/Commercial buildings, strip malls, and large Commercial businesses). Include information on food donation laws (e.g., Good Samaritan Law) and organizations that accept donations if known.

One (1) time at beginning of the Agreement (20-30 days prior to contract start date) via direct mail. Thereafter, distributed during Diversion opportunity assessments. 257
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EXHIBIT C

PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-12 City of Cupertino/Recology Franchise Exhibit C Description Purpose Distribution/FrequencyTechnical Assistance: Diversion Opportunity Waste Assessments Visit in person and offer Diversion opportunity assessments at least one (1) time annually to each and every Commercial Customer to promote Recyclable Materials and Organic Materials Collection and replenish Recycling guides and Recyclable Materials and Organic Materials posters as needed by each Customer. Provide inside Containers (e.g., 32 gallon “slim jims”) with labels upon request to assist with Diversion (to be provided to Customers at cost). Additionally, Contractor shall perform complete walk-throughs of each facility/complex and discuss the internal and external layout with property manager; identify areas of generation, Collection, noting areas for improved infrastructure, placement, or educational materials. Contractor shall also identify major components of the waste stream by location and identify special wastes or sourced separated materials potentials. Contractor shall then make recommendations for waste reduction, contamination prevention, and Service Level or frequency modification. Finally, Contractor shall coordinate with Customer service and operations to implement Service Level changes, as needed.

Offer one (1) time annually during in-person meetings with Commercial Customer, plus follow-up meetings with individual Customers, as required or requested.

Recyclable Materials and Organic Materials Posters
Produce and Distribute City-produced (during Diversion opportunity assessments) laminated Recyclable Materials and Organic Materials posters that provide graphic illustrations of acceptable materials and Prohibited Container Contaminants within each program.

Distributed during Diversion opportunity assessments.

Quarterly Bill Inserts Produce and distribute City-designed quarterly bill inserts that creatively inform Commercial Customers about such topics as: cost savings available from source reduction, Reuse, and Recycling; tips for overcoming common operational challenges businesses have with Recyclable Materials and Organic Materials programs; the environmental benefits of buying Recycled-content products and statistics, trends, and facts about programs performed under this Agreement (e.g., Collected, Tonnage, year over year increase/decrease, markets for material Collected, what each material is Recycled into) as appropriate. Contractor’s annual public education plan shall define a theme for each quarterly insert.

One (1) time per quarter via direct mail to each Commercial Customer in the City. 258
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EXHIBIT C

PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-13 City of Cupertino/Recology Franchise Exhibit C Description Purpose Distribution/FrequencyProgram Announcements On each bill, Contractor shall include a brief statement to Commercial Customers providing service-related announcements such as messages about new services, the proper handling of Household Hazardous Waste, waste reduction, etc.

Included in Customer bill.

Corrective Action Notices Produce a Commercial and Multi-Family Customer oriented Non-Collection Notice and Courtesy Notice for use in instances where the Customer includes prohibited materials in a Container or fails to properly prepare or set-out Containers.

As needed.

SB 1383 Educational Materials for Employees/ Occupants
Commencing January 1, 2022, Contractor shall provide Commercial property managers/Owners with City-produced public education materials, required by CCR Section 18984.10, for their distribution to all employees, Contractors, Occupants, and Customers of the property or business. The public education materials shall include, at a minimum, information about Organic Waste recovery requirements and proper sorting of Discarded Materials. Commercial Customers may request these materials more frequently if needed to comply with the SB 1383 requirement to provide information to new Occupants before or within fourteen (14) days of occupancy. In this case, the Commercial property manager/Owner may request delivery of materials by contacting Contractor’s Customer service department no later than two (2) weeks in advance of the date that the materials are needed.

One (1) time annually; or more frequently upon Customer request. 259
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EXHIBIT C

PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-14 City of Cupertino/Recology Franchise Exhibit C Description Purpose Distribution/FrequencySB 1383 Commercial Edible Food Generator Education Commencing January 1, 2022, Contractor shall provide Customers that are Commercial Edible Food Generators with City-produced educational materials that contain the following: 1. Information about the City’s Edible Food Recovery program; 2. Information about the Commercial Edible Food Generator requirements under 14 CCR, Division 7, Chapter 12, Article 10;

3. Information about Food Recovery Organizations and Food Recovery Services operating within the City, and where a list of those Food Recovery Organizations and Food Recovery Services can be found; and,

4. Information about actions that Commercial Edible Food Generators can take to prevent the creation of Food Waste
One (1) time annually.
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EXHIBIT C

PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-15 City of Cupertino/Recology Franchise Exhibit C Public Education and Outreach | Schools All printed materials also to be posted to the Company’s website as well as links to teacher resources.

Description Purpose Distribution/FrequencyEducational Materials Contractor shall produce and distribute educational materials designed by the City that are geared towards younger audiences, such as educational videos, activity books, and Recycling posters. Contractor shall provide schools with copies of materials upon request forclassroom use.

As mutually agreed by City, Contractor, and the school district. Costs of this activity will be treated as a pass-through cost and added to annual Rate adjustments.

Technical Assistance: Diversion Opportunity Assessment
Offer on-going technical assistance to schools subscribing to Contractor’s services, including performing annual waste assessments, communicating with waste brokers where such arrangements exist, calculating Diversion rates, encouraging Reusables, and communicating the results to the City to improve existing school Recyclable Materials and Organic Materials programs. The annual waste assessments shall include a specific assessment of Food Waste generated on the school Premises; potential for source reduction and Diversion of Food Waste; and identification of Food Recovery education and programs that may be established, both internally (e.g., lunch share tables) and externally (e.g., partnerships with local Food Recovery Organizations and Services).

Offered to schools Upon Request.

Presentation Present curriculum to teach children how to Recycle, Compost, and reduce waste at school and at home.

At City or organization request
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EXHIBIT C

PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-16 City of Cupertino/Recology Franchise Exhibit C Public Education and Outreach | Special Events All printed materials also to be posted to the Company’s website as well as links to teacher resources.

Description Purpose Distribution/FrequencyEvent Exhibit Contractor shall staff an exhibit booth and distribute promotional and educational materials at special events. Contractor shall provide visual displays, copies of educational materials (including all guides, flyers, and brochures producedfor this Agreement), and Recyclable Materials and Organic Materials Diversion education activities appropriate to a variety of age groups. Display components will be professionally designed and created and shall be scalable to be appropriate for a variety of booth or display configurations. Materials will include those pertaining to theprograms provided under this Agreement as well as general information on “green” and/or sustainable behaviors.

All special events listed in Exhibit B7 of this Agreement. Other events at Customer request. 262
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EXHIBIT C

PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-17 City of Cupertino/Recology Franchise Exhibit C

5. Food Recovery Online List
A. Food Recovery Organizations and Food Recovery Services Online List. On or before February 1, 2022, the City shall develop a list of Food Recovery Organizations and Food Recovery Services operating within the City. Contractor will maintain the list on Contractor’s City-specific website, and the City will update the list annually. The online list shall contain information as described in this Exhibit C.

B. Education Materials for Food Recovery Organizations and Food Recovery Services Online List.

Minimum Content Requirements. The online list shall include, at a minimum, the following information about each Food Recovery Organization and each Food Recovery Service located within the City:
• Name and physical address;
• Contact information;
• Collection service area; and,
• An indication of types of Edible Food the Food Recovery Service or Food Recovery Organization can accept for Food Recovery.
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EXHIBIT D:

REPORTING REQUIREMENTS
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EXHIBIT D

REPORTING REQUIREMENTS
December 3, 2020 Page D-1 City of Cupertino/Recology Franchise Exhibit D

OVERVIEW
Records shall be maintained in forms and by methods that facilitate flexible use of data contained in them to structure reports, as needed, in accordance with this Exhibit and Article 6. Reports are intended to compile recorded data into useful forms of information that can be used to, among other things:

A. Determine and set Rates and evaluate the financial efficacy of operations.

B. Evaluate past and expected progress towards achieving Diversion goals and objectives.

C. Provide concise and comprehensive program information and metrics for use in fulfilling reporting requirements under Applicable Law.

D. Determine needs for adjustment to programs.

E. Evaluate Customer service and Complaints.

F. Determine Customer compliance with AB 341, AB 1826, Cupertino Municipal Code 6.24 Mandatory Organic Recycling for Business Structures, SB 1383, and any subsequent Statemandated or local Recycling requirements.

1. MONTHLY REPORT CONTENT
In accordance with Section 6.2, monthly reports shall be submitted by Contractor to the City and shall include the following information as well as a year-to-date summary page that includes the data submitted from the monthly report(s) submitted in the calendar year prior to the submittal of the current monthly report. Contractor shall report the information included in the following subsections.

A. Tonnage Report

1. Tonnage delivered to each Approved Facility by Customer Type, subtotaling and clearly identifying material type Tons, including Bulky Item materials, that are Diverted and those that are Disposed. For unweighed material (e.g., those listed in item 2 below), or material commingled with non-Cupertino material, a reasonable estimation/allocation methodology may be used, provided that it has been approved in writing in advance by the City Contract Manager.

2. Tons collected from regular accounts (as opposed to collected from C&D projects or special cleanouts) shall be reported in the appropriate section of the report by Customer Type, regardless of Container type (e.g., Drop Boxes or Compactors that are part of regularly subscribed Commercial service will be shown in the Commercial section of the Tonnage report).

3. Units of Used Motor Oil and Filters, E-Waste, U-Waste, and Bulky Items Collected by Customer Type, categorized by On-Call Collection or City-wide Recycling events.

4. If and to the extent available from the Approved Recyclable Materials Processing Facility, Recyclable Materials Tonnage marketed (by commodity and including average commodity value for each) and Processing Residue Tonnage Disposed. 266
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EXHIBIT D

REPORTING REQUIREMENTS
December 3, 2020 Page D-2 City of Cupertino/Recology Franchise Exhibit D

5. Copies of all statements and invoices for the month from each Approved Facility, documenting materials accepted by Processing contamination tier, as applicable, provided, however, that statements and invoices from the Approved Recyclable Materials Processing Facility may be made available for inspection by the City, instead of copies being provided.

B. Diversion Report. Contractor shall report the Diversion level for each month and the cumulative year-to-date Diversion level, where Diversion level shall be calculated as provided in Section

5.11.A.

1. Contractor shall report the monthly Diversion Rate by Customer Type and in aggregate for all Customer Types under this Agreement.

C. Revenue Report. Provide a statement detailing Gross Receipts pursuant to this Agreement.

D. Customer Subscription and Collection Report

1. A summary of Customer subscription data, including the number of accounts; the number of Customers subscribing to each Service Level listed separately by Customer Type and Discarded Material type.

2. Number of On-Call Collection, Bulky Item Collection, and Bin-by-the-Day Collection events by Customer Type.

3. Number of Customers subscribing to each City-approved service exemption by Customer Type; including the total number of de minimis waivers, physical space constraint waivers, and Collection frequency waivers granted in the month in accordance with Section 4.12, including the Customer name and address for each waiver.

4. The number of waivers reviewed and number of reverification inspections performed by Contractor pursuant to Section 4.12.2 of this Agreement in the month, if any, including a copy of documentation for each waiver review and reverification inspection.

5. Number of Extra Bag Tags used by Customers.

6. Number of incidences of contamination that renders the Used Motor Oil and Filter or used cooking oil unacceptable for Recycling or that requires Disposal as a Hazardous Waste.

E. Customer Service Report

1. Number of Customer calls listed separately by Complaints. For Complaints, list the number of calls separately by category (e.g., missed pickups, scheduled cleanups, billing concerns, damage claims, etc.). These Complaints and inquiries shall be documented and reported separately from SB 1383 noncompliance Complaints or other regulatory noncompliance Complaints.

2. Number of missed or incomplete Collections reported in total, and per one thousand (1,000) Service Opportunities in the City, presented in a graph format. 267
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EXHIBIT D

REPORTING REQUIREMENTS
December 3, 2020 Page D-3 City of Cupertino/Recology Franchise Exhibit D

3. Number of new service requests for each Customer Type and program.

4. Number of events of Discarded Materials being tagged with Non-Collection Notices summarized by the reason for tagging (e.g., inclusion of non-Recyclable or non-Compostable materials, improper set-out, Hazardous Waste, etc.), presented in a graph format.

5. Number of courtesy Collections summarized by the reason for leaving a Courtesy Notice (e.g., inclusion of non-Recyclable or non-Compostable materials, improper set-out, Hazardous Waste, etc.), presented in a graph format.

6. Beginning on January 1, 2022, record of SB 1383 non-compliance Complaints received, including the following information:
a. Total number of Complaints received and total number of Complaints investigated. b. Copies of documentation recorded for each Complaint received, which shall at a minimum include the following information: (i) The Complaint as received; (ii) The name and contact information of the complainant, if the Complaint is not submitted anonymously; (iii) The identity of the alleged violator, if known; (iv) A description of the alleged violation; including location(s) and all other relevant facts known to the complainant; (v) Any relevant photographic or documentary evidence submitted to support the allegations in the Complaint; and, (vi) The identity of any witnesses, if known.
c. Copies of all Complaint reports submitted to the City, pursuant to Section 4.10.2 of this Agreement.
d. Documentation of any follow-up inspections and/or outreach, if any, conducted upon City request pursuant to Section 4.10.2 of this Agreement, which shall include at a minimum: (i) The date Contractor investigated the Complaint; (ii) documentation of the findings of the investigation; and (iii) Any photographic or other evidence collected during the investigation. This reporting element can be met by use of a City-approved shared cloud-based documentation software such as Recyclist.

F. Education and Outreach
Items 1 through 4 below are required under SB 1383 and shall be included in the SB 1383 report as described in this Exhibit D, Section 1.G.12 below.

1. A record of the date and to whom the information was disseminated or direct contact made, in the form of a list that includes: the Generator’s name or account name, the type of education or outreach received; the distribution date, and the method of distribution.

2. The number of Organic Waste Generators and Commercial Edible Food Generators that received information and the type of education and outreach used. 268
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EXHIBIT D

REPORTING REQUIREMENTS
December 3, 2020 Page D-4 City of Cupertino/Recology Franchise Exhibit D

3. For any mass distribution through mailings or bill inserts, provide a record of the date, a copy of the information distributed, and the type and number of accounts that received the information.

4. A copy of all electronic media, including the dates posted or sent of: social media posts, email communications, or other electronic messages.

5. Dates, times, and group or event names of any site visits, meetings, and events attended in the month. This reporting element can be met by use of a City-approved shared cloud-based documentation software such as Recyclist.

G. SB 1383 Related Reporting
Beginning January 1, 2022 and monthly thereafter, Contractor will report on the following items.

1. The number of Route reviews conducted, pursuant to Section 4.13 of this Agreement.

2. Description of Contractor’s process for determining the level of contamination during Route reviews.

3. A record of each inspection and contamination incident, which shall include, at a minimum:
a. Name and address of the Customer;
b. The date the contaminated Container was observed;
c. The staff who conducted the inspection;
d. The total number of violations found and a description of what action was taken for each;
e. Copies of all notices to Customers with Prohibited Container Contaminants; and, f. Photographic documentation.

4. Documentation of the total number of Containers Disposed of due to observation of Prohibited Container Contaminants;

5. Summary report of Courtesy Notices Non-Collection Notices, and/or contamination Processing fee assessment notices issued. Each notice shall include the date of issuance, Customer name, and service address.

6. A list of all Customers assessed contamination Processing fees, pursuant to Section 4.13 of this Agreement, reported separately by Customer Type, and including the Customer name, Customer address, and reason for the assessment of the contamination Processing fee; the total number of instances contamination Processing fees were assessed in the month; and, the total amount of fees collected in the month.
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EXHIBIT D

REPORTING REQUIREMENTS
December 3, 2020 Page D-5 City of Cupertino/Recology Franchise Exhibit D

7. Assessment documentation and notes for Multi-Family and Commercial Customer compliance reviews, including a list of Generators for which Contractor is unable to setup Collection service, as noted in Section 4.8 C of this Agreement.

8. Results of the waste evaluation studies conducted pursuant to Section 4.13.2 of this Agreement.

9. Summary of all loads of Recyclable Materials that were rejected at the Approved Recyclable Materials Processing Facility or the Designated Recyclable Materials Processing Facility, including: the date and time the load was rejected at the facility; Contractor’s truck number; the reason for rejection; the materials in the load that required the load to be landfilled; Contractor’s Disposal method; and, final destination for the rejected load.

10. Summary of all loads of Organic Materials that were rejected at the Approved Transfer Facility and Approved Organic Materials Processing Facility, including: the date and time the load was rejected at the Approved Facility; Contractor’s truck number; the reason for rejection; the materials in the load that required the load to be landfilled; Contractor’s Disposal method; and, final destination for the rejected load.

11. Any other information reasonably requested by the City or specified in contamination monitoring provisions of this Agreement.

12. SB 1383-related public education and outreach materials described in this Exhibit D, Section

1.F.1 through 1.F.4 above.

H. C&D Collection. In accordance with Section 4.5 and Exhibit B3, Contractor shall separately document the following information:

1. Tonnage of C&D Collected;

2. Tonnage of C&D delivered to the Designated Disposal Facility; and,

3. Calculation of the Diversion level, including C&D Transported to a City-Approved Facility other than the Designated Disposal Facility (Tons of C&D Recycled, Reused, or salvaged divided by Total Tons of C&D Collected).

Upon City direction, Contractor shall utilize a cloud-based C&D software system to track and report such C&D data. Contractor shall provide each Customer with documentation necessary for the Customer to meet the requirements of the City’s C&D ordinance.

I. Non-Conforming Carts Status. In accordance with Section 5.6, Contractor shall document the status of exchanging Non-Conforming Carts.

2. QUARTERLY REPORT CONTENT
A. Tonnage Allocation. On a quarterly basis, Contractor shall report the Tonnage attributed to the City that was taken to landfills other than the Designated Disposal Facility as Residual from Organic Material screening or Processing at any Contractor facility. The report shall include 270
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EXHIBIT D

REPORTING REQUIREMENTS
December 3, 2020 Page D-6 City of Cupertino/Recology Franchise Exhibit D Contractor’s methodology, including how often it is reviewed and updated, for estimating what percentage of the jurisdictionally commingled non-Compostable Tonnage that was landfilled is attributable to the City and reported to CalRecycle through the Disposal Reporting System (DRS).

B. Claims. On a quarterly basis, Contactor shall submit to City all claims against Contractor specific to the services provided under the Agreement, that have been filed, settled, or that are under review.

3. BIANNUAL REPORT CONTENT
On April 1 and October 1 of each year of this Agreement, and at other times upon City request, Contractor shall provide the City with copies of laboratory results on the quality of the Compost materials produced from the Organic Materials Collected in the City in the prior three months, and on the Organic Materials provided to the City as required in Exhibit B4, Section 5 of this Agreement.

4. ANNUAL REPORT CONTENT
The annual report shall be the final monthly report, including annual totals, summary pages, and a compilation of any materials required by the monthly reports, plus the following additional information.

A. Summary Assessment. Provide a summary assessment of the programs performed under this Agreement from Contractor's perspective relative to the financial and physical status of the program. The physical status assessment shall reflect how well the program is operating in terms of efficiency, economy, and effectiveness in meeting all the goals and objectives of this Agreement, particularly Contractor’s Diversion goals as provided in Section 5.11. Provide recommendations and plans to improve, and highlight significant accomplishments and problems.

B. Collection and Processing Report

1. The total Tonnage amount of Discarded Materials, listed separately by Discarded Material type, removed by Contractor from illegal Disposal sites as part of an abatement activity, listing each Collection event separately by date, location, and Tonnage Collected, pursuant to Section 4.2.B of the Agreement.

2. Number of Containers at each Service Level by Customer Type and program. Summarizing the total gallons of Cart service, cubic yards of Bin service, and pulls and cubic yards or Tons of Drop Box and Compactor service by Customer Type. Report should calculate the average volume of service received per: Single-Family Dwelling Unit (separately identifying Dwelling Units in a duplex, triplex, or fourplex); Multi-Family Dwelling Unit; and, Commercial Customer.

3. A record of all compliance agreements for quarantined Organic Waste that are Disposed of, including the name of Generator, date issued, location of final disposition, and the amount of quarantined Organic Waste that was required to be Disposed at a landfill, pursuant to Section

4.2.C of the Agreement.

4. Written notification as to whether the Approved Organic Materials Processing Facilities have and will continue to have the capabilities to Process and recover Compostable Plastic, in accordance with Section 4.2.C of the Agreement.
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EXHIBIT D

REPORTING REQUIREMENTS
December 3, 2020 Page D-7 City of Cupertino/Recology Franchise Exhibit D

5. Summary report of the “Coats for Kids” program.

C. Education and Outreach Report

1. A summary of the status of the annual education plan of the reporting year, including activities conducted and the quantitative and/or qualitative results of those activities.

2. The annual public education plan required by Exhibit C of the Agreement for the upcoming then-current calendar year. For example, Contractor submittal of a 2021 annual report in February 2022 shall include Contractor submittal of the annual public education plan for calendar year 2022.

D. Commercial Edible Food Generator Report
Commercial Customer list including contact information for each Commercial Customer designated by City as either a Tier One Commercial Edible Food Generator, Tier Two Commercial Edible Food Generator, or non-covered Edible Food Generator.

E. Vehicle Inventory

1. A list of all vehicles used in performing services under this Agreement, including the license plate number, VIN, make, model, model year, purchase date, engine overhaul/rebuild date (if applicable), and mileage at January 31.

2. The results of any Collection vehicle pilot programs conducted by Contractor and approved by the City.

3. Description of the use of electric vehicles in pilot programs as well as in regular collection service by Contractor in other jurisdictions and Contractor’s recommendation on feasibility of use of such technology in Cupertino.

F. Temporary Equipment or Operations Failure: If Contractor is granted a Processing Facility temporary equipment or operational failure waiver, in accordance with Section 4.1 and 4.2 of the Agreement, Contractor shall include the following documents and information:

1. The number of days the Processing Facility temporary equipment waiver or operation failure waiver was in effect;

2. Copies of any notifications sent to the City pursuant to Sections 4.1 and 4.2 of the Agreement, and copies of City notices to Contractor pursuant to Sections 4.1 and 4.2 of the Agreement;

3. Documentation setting forth the date of issuance of the waiver, the timeframe for the waiver; and,

4. A record of the Tons of Recyclable Materials and/or Organic Materials redirected to an alternative facility or Disposed at an Approved Facility or Designated Disposal Facility as a result of the waiver, recorded by Collection vehicle or transfer vehicle number/load, date, and weight.
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EXHIBIT D

REPORTING REQUIREMENTS
December 3, 2020 Page D-8 City of Cupertino/Recology Franchise Exhibit D G. Environmentally-Preferable Purchasing Report. In accordance with Section 5.10, provide the type of Recycled content paper and other items purchased, a summary of any other source reduction strategies implemented during the year, and the quantified results of the source reduction strategy.

5. ADDITIONAL REPORTS
A. Upon Incident Reporting. The City reserves the right to request additional reports or documents in the case of unforeseen events or additional requirements imposed upon the City. Contractor shall provide the requested reports, documents, or information within ten (10) Business Days upon receipt of the request or within a timeframe determined by the City Contract Manager, which shall not to exceed ten (10) days.

B. AB 901 Reporting. At the City’s option, the City may require that Contractor provide the City copies of Contractor’s AB 901 reports on a regular basis (such as monthly, quarterly, or annually) or within ten (10) Business Days of the request.

C. Delinquent Accounts. In accordance with Section 4.9 and at the City’s option, the City may require that Contractor provide a list of Customers that are forty-five (45) or more calendar days past due and include the following information for each delinquent account: name; service address; contact information; number of days the account is delinquent; and method(s) Contractor has used to attempt collection of the bad debt including date of such attempt(s).

D. Reviewed Financials. After the end of each year, Contractor shall submit to the City a copy of its reviewed financial statements for such year as provided in Exhibit E. Contractor shall not be required to submit reviewed financials in Rate Year 2 and Rate Year 3.

E. Customized Reports. The City reserves the right to request Contractor to prepare and provide customized reports from records Contractor is required to maintain; or require a specified format or submission system, such as the use of a web-based software platform.

F. Recyclable Materials and Organic Materials Markets. Contractor shall provide, if and to the extent available from the Approved Recyclable Materials Processing Facility, an assessment describing such facility’s marketing of Recyclable Materials, including: 1) quantities and dates of Recyclable Materials marketed during the prior year; 2) actual prior year and estimated coming year per unit or per Ton market values for each, including adjustments on previously reported market values; and, 3) brokers, markets, and end uses for each.

G. Subcontractor Insurance Certificates. Copies of insurance certificates from Subcontractors, as provided Section 3.3.
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EXHIBIT E:

RATE ADJUSTMENT METHODOLOGY
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EXHIBIT E

RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E-1 City of Cupertino/Recology Franchise Exhibit E

1. GENERAL
The Rates for Rate Period One are as specified in Table 8-2 of Section 8.2 and Exhibit G3 of this Agreement.

Subject to the terms herein, and beginning with Rate Period Four, the City shall adjust all Rates on an annual basis for each Rate Period in accordance with Exhibit E1 or E2, as provided in Article 8 and otherwise in this Agreement.

Contractor shall submit its application for a Rate adjustment to the City Contract Manager on or before August 1 of each Rate Period where Rates shall be adjusted using the index-based methodology described in Exhibit E1. Contractor shall submit its application on or before August 1 for any Rate Period where Rates shall be adjusted using the cost-based methodology described in Exhibit E2. Contractor’s Rate application shall document all calculations and include all supporting schedules, documentation of perTon charges for Approved Facilities, documentation of changes in governmental fees at Approved Facilities (if applicable), and any other documentation or evidence determined by the City Contract Manager to be reasonably necessary to ensure that the calculation of Rate adjustments has been performed in strict conformance to the requirements of this Exhibit E.

The City Council shall make a good faith effort to approve Rates by January 1 of each year, and such Rates shall be effective on each subsequent February 1. If Rates are not effective by February 1 due to a delay caused solely by the City, the City shall allow Contractor to retroactively bill Customers for the amount of the Rate increase for any period of said delay that is solely caused by the City (subject to the City’s approval of how the retroactive adjustment is billed) or the City may compensate Contractor for lost Gross Receipts.

In the case of a delayed Rate adjustment, Contractor may bill the Customer during the next billing cycle to recoup the deferred Rate increase. If Rates are not effective by February 1 as a result of Contractor’s delay in submitting the Rate application in a complete and accurate form, then prior Rates remain in effect until such adjustment is made and Contractor shall not be entitled to a retroactive adjustment for lost Gross Receipts.

2. DEFINITIONS
Certain terms that are specific to this Exhibit (including Exhibits E1 and E2) are defined below:

A. “Annual Percentage Change” means the annual percentage change in any of the indices defined herein calculated as described in the following paragraph.

The Annual Percentage Change for a cost index shall be calculated as: the Average Index Value for the twelve- (12) month period ending in June of the then-current Rate Period, minus the Average Index Value for the corresponding twelve- (12) month period ending in June of the most-recently completed Rate Period, and the result of which shall be divided by the Average Index Value for the same twelve- (12) month period ending in June of the most recently completed Rate Period.

For example, if Contractor is calculating the Total Calculated Costs in July 2024 to be effective for Rate Period Five (February 2025 through January 2026), the Annual Percentage Change for the CPI-U would be calculated as follows:
[ (Average CPI-U for July 2023 through June 2024) minus (Average CPI-U for July 2022 through June 2023) ] divided by (Average CPI-U for July 2022 through June 2023)
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EXHIBIT E

RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E-2 City of Cupertino/Recology Franchise Exhibit E The calculated Annual Percentage Change shall be carried to three places to the right of the decimal and rounded to the nearest thousandths.

B. “Average Index Value” means the sum of the monthly index values during the applicable twelve- (12) month period divided by twelve (12) (in the case of indices published monthly) or the sum of the bi-monthly index values during the applicable twelve- (12) month period divided by six (6) (in the case of indices published bi-monthly).

C. “City Payments” means: 1) those annual amounts, payable by City to Contractor monthly, as are specified in Article 8.2 for Rate Periods One, Two and Three; and 2) for subsequent Rate Periods, such annual amounts payable by City to Contractor monthly as the City agrees to pay during the Rate adjustment process for such Rate Period, to reduce the Rate increase that would otherwise occur in that Rate Period. Such payments shall be effected by netting the monthly amount of the City Payment against the monthly amount of City Fees payable by Contractor to City.

E. “CPI-U” means the Consumer Price Index, All Urban Consumers, all items, not seasonally adjusted San Francisco Bay Area compiled and published by the U.S. Department of Labor, Bureau of Labor Statistics.

F. “Disposal Cost” means the cost of Disposing of Solid Waste at the Designated Disposal Facility where the per-Ton tipping fee (cost) is the then-applicable contractual amount as confirmed by the City.

G. “ECI” means the Employment Cost Index, Total Compensation, Private Industry, Service-Providing Industries, seasonally adjusted, compiled and published by the U.S. Department of Labor, Bureau of Labor Statistics.

H. “Fuel Index” means the Consumer Price Index, All Urban Consumers, Motor Fuel, San FranciscoOakland-Hayward, not seasonally adjusted, series ID: CUURS49BSETB, compiled and published by the U.S. Department of Labor, Bureau of Labor Statistics.

I. “Motor Vehicle Maintenance and Repair Index” or “MVI” means the Consumer Price Index, All Urban Consumers, Motor Vehicle Maintenance and Repair, not seasonally adjusted U.S. city average, compiled and published by the U.S. Department of Labor, Bureau of Labor Statistics.

J. “Total Calculated Costs” means the total amount to be used as a basis for determining the Rate Adjustment Factor. The Total Calculated Costs do not reflect or in any way guarantee the Gross Receipts that are to be generated by Rates or retained by Contractor.

K. “Total Rate Adjustment Factor” means the Total Rate Adjustment Factor as calculated in Section 3 of Exhibit E1 for index-based adjustments, or as calculated in Section 4 of Exhibit E2 for costbased adjustments.

Table 1 below provides additional information about the four (4) indices defined above. 276
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EXHIBIT E

RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E-3 City of Cupertino/Recology Franchise Exhibit E TABLE 1*
CPI-U Fuel Index ECI Motor Vehicle
Maintenance and
Repair
Description Consumer Price
Index - All Urban
Consumers
Consumer Price
Index - All Urban
Consumers
Employment Cost
Index - Total
Compensation for
Private Industry
Workers in ServiceProviding Industries.

Consumer Price
Index – All Urban
Consumers, Motor
Vehicle
Maintenance and
Repair
Series ID CUUSS49BSA0 CUURS49BSETB CIS201S000000000I CUUR0000SETD Adjusted Not seasonally
adjusted
Not seasonally
adjusted
Seasonally adjusted Not seasonally
adjusted
Area San FranciscoOakland-Hayward San FranciscoOakland-Hayward N/A U.S. City average Item All items Motor fuel Total compensation Motor vehicle maintenance and
repair
Base
Period
1982-84=100 1982-84=100 Dec. 2005=100 1982-84=100
Periodicity Bi-monthly Monthly Quarterly Monthly
* All indices published by the U.S. Bureau of Labor Statistics.

3. COST OF RATE ADJUSTMENT PROCESS
The City may incur costs, including consulting and legal fees, when determining adjustments to the Rates in accordance with this Exhibit and may require Contractor to pay for such costs within sixty (60) calendar days of receipt of the City’s invoice for such costs. Contractor may recover such costs through the Rates by treating the costs as an allowable Pass-Through Cost. Notwithstanding the foregoing, Contractor shall only be required to reimburse City’s costs to the extent such costs have been included as allowable PassThrough Costs in the Rate adjustment with respect to which the costs were incurred, and such Rate adjustment has been approved by the City Council. Regardless of Contractor’s payment of costs associated with said review, the City shall retain full and unimpeded discretion in selection of its agents to ensure, at a minimum, that no conflict of interest arises in the review of Contractor’s request. The City retains the right to select its agents on the basis of their qualifications and experience and without regard to cost. 277
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EXHIBIT E1:

MULTI-INDEX RATE ADJUSTMENT METHODOLOGY
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EXHIBIT E1

MULTI-INDEX RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E1-1 City of Cupertino/Recology Franchise Exhibit E1

1. GENERAL
The purpose of this attachment is to describe and illustrate the method by which the City will calculate the annual adjustment to Rates to reflect changes in various cost indices and changes to Processing and Disposal Costs based on Tonnages of materials Collected and changes in tipping fees. This index-based adjustment process shall be used to determine Rates for Rate Periods Five, Six, Seven, Nine, and Ten (and, if the Term is extended, Twelve, Thirteen, Fourteen, and Fifteen). However, the cost-based methodology described in Exhibit E2 shall be used to set Rates in lieu of the index adjustment to set Rates provided in Exhibit E1, as provided in Sections 3.2, 8.2 and 8.3 of the Agreement, and the third paragraph below.

The index-based adjustment involves application of indices to various costs that comprise the Total Proposed Annual Costs, beginning with Rate Period Four to determine the Total Calculated Costs for the subsequent Rate Period. In addition, Processing and Disposal costs shall be adjusted to reflect actual Tonnage Collected during the most-recently completed Rate Period.

The annual increase in Total Calculated Costs calculated pursuant to this Exhibit E1 may not exceed five percent (5%). In the event that Total Calculated Costs for the coming Rate Period as calculated under this Exhibit E1 exceeds by more than five percent (5%) Total Calculated Costs for the then-current Rate Period, then Contractor may elect to either: i) accept an increase in Contractor Compensation based on an increase in Total Calculated Costs of five percent (5%); or, ii) require that a cost-based Rate adjustment be performed under the procedures described in Exhibit E2.

In the event that the index-based adjustment as calculated by this Exhibit E1 results in a negative Rate Adjustment Factor, the City reserves the right to “roll-under” the Rate reduction, such that there is no Rate adjustment in the Rate Period for which the negative Rate Adjustment Factor was calculated, but the calculated Rate reduction may be deferred to the following Rate Period, as a credit against future Rate increases.

2. ADJUSTMENT OF TOTAL CALCULATED COSTS
The cost categories of the main components of Total Calculated Costs are presented in detail in Exhibit G2. Adjustments to these components to calculate costs for the coming Rate Period shall be calculated as follows:

A. Total Annual Cost of Operations

1. Labor-Related Costs. The Labor-Related Costs component of Total Calculated Costs for the then-current Rate Period is multiplied by one (1) plus the Annual Percentage Change in the ECI.

For example, in Rate Period Five when calculating the Labor-Related Costs for Rate Period Three, the Labor-Related Costs of Rate Period Four shall be multiplied by one (1) plus the Annual Percentage change in the ECI.

2. Vehicle-Related Costs (excluding Fuel). The Vehicle-Related Costs component of Total Calculated Costs for the then-current Rate Period is multiplied by one (1) plus the Annual Percentage Change in the Motor Vehicle Maintenance and Repair Index. 280
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EXHIBIT E1

MULTI-INDEX RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E1-2 City of Cupertino/Recology Franchise Exhibit E1

3. Fuel Costs. The Fuel Cost component of Total Calculated Costs for the then-current Rate Period is multiplied by one (1) plus the Annual Percentage Change in the Fuel Index.

4. Other Costs. The Other Costs component of the Total Calculated Costs for the then-current Rate Period is multiplied by one (1) plus the Annual Percentage Change in the CPI-U.

5. Direct Depreciation. Direct Depreciation for Containers and equipment is nine hundred and five thousand, eight hundred and fifty-three dollars ($905,853.00) per year in Rate Periods Two through Ten, and is not annually adjusted. If the Agreement is extended beyond Rate Period Ten, direct depreciation shall be as set forth in Exhibit G2 (Capital Plan), unless Parties mutually agree to a different amount.

6. Allocated Costs (Labor, Vehicle, Fuel, and Other Costs). The Allocated Costs (Labor, Vehicle, Fuel, and Other Costs) component for the then-current Rate Period is multiplied by one (1) plus the Annual Percentage Change in the CPI-U.

7. Allocated Depreciation. The Allocated Depreciation shall be thirty five thousand, three hundred and eleven dollars ($35,311.00) per year in Rate Periods Two through Ten, and is not annually adjusted. These costs shall be zero (0) for all subsequent Rate Periods unless Parties mutually agree to a different amount.

8. Total Annual Cost of Operations. The Total Annual Cost of Operations for the coming Rate Period equals the sum of the costs calculated in this Exhibit E1, Section 2.A.1-7 above.

B. Profit. Profit for the coming Rate Period shall be calculated by dividing the Total Annual Cost of Operations for the coming Rate Period (the value calculated in Section 2.A.8 above) by an operating ratio of seventy-two and one-half percent (72.5%) and subtracting from the result the Total Annual Cost of Operations for the coming year.

Profit =
Total Annual Cost of Operations
___for Coming Rate Period___
Operating Ratio
−
Total Annual Cost of Operations
for Coming Rate Period
C. Pass-Through Costs (Excluded from the Calculation of Profit)

1. Recyclable Materials Processing Costs. The Recyclable Materials Processing Costs shall be calculated as follows:

Recyclable Materials Processing Costs = Per-Ton Recycling Materials Processing fee at the Approved Recyclable Materials Processing Facility for the coming Rate Period x Total Tons of Recyclable Materials Collected for the most-recently completed twelve- (12) month period.

If the City approves a change in the Approved Recyclables Material Processing Facility or the Designated Recyclables Material Processing Facility, the Recyclable Materials Processing Cost shall adjust by the actual change in the costs, as specified in the Recyclable Materials Processing contract.

2. Organic Materials Processing Costs. The Organic Materials Processing Costs shall be calculated as follows:
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December 3, 2020 Page E1-3 City of Cupertino/Recology Franchise Exhibit E1 Residential Organic Materials Processing Costs
Residential Organic Materials Processing Cost = [(Per-Ton Residential Organic Materials Processing Cost for the then-current Rate Period - All regulatory fees identified on Form 7 of Exhibit G2, (Contractor’s Proposal) and included in the then-current per-Ton cost) x (1 + Annual Percentage Change in the CPI-U) + (Then-current per-Ton regulatory fees)] x (Total Tons of Residential Organic Materials Collected for the most-recently completed twelve- (12) month period).

Commercial Organic Materials Processing Costs
Commercial Organic Materials Processing Cost = [(Per-Ton Commercial Organic Materials Processing Cost for the then-current Rate Period - All regulatory fees identified on Form 7 of Exhibit G2, (Contractor’s Proposal) and included in the then-current per-Ton cost) x (1 + Annual Percentage Change in the CPI-U) + (Then-current per-Ton regulatory fees)] x (Total Tons of Commercial Organic Materials Collected for the most-recently completed twelve- (12) month period). Residential Organic Materials Processing Costs and Commercial Organic Materials Processing Costs shall be inclusive of transfer costs.

If the City approves a change in the Approved Organic Materials Processing Facility, the Processing Costs shall adjust to the then-current tip fee at the new Approved Organic Materials Processing Facility.

3. Disposal & C&D Processing Costs. The Disposal Costs and C&D Processing Costs shall be calculated as follows:

Disposal Costs = Per-Ton Disposal fee at the Designated Disposal Facility for the coming Rate Period x Total Tons of Solid Waste Collected for the most-recently completed twelve- (12) month period.

C&D Processing Costs = Per-Ton Processing fee at the Designated C&D Processing Facility for the coming Rate Period x Total Tons of C&D Collected for the most-recently completed twelve- (12) month period.

If the City approves a change in the Designated Disposal Facility or the Approved Disposal Facility, or the Designated C&D Processing Facility or the Approved C&D Processing Facility the Disposal Costs or C&D Processing Costs (as the case may be) shall adjust to the thencurrent tip fee at the new facility.

4. Interest Expense. The Interest Expense amount is three hundred twenty six thousand, six hundred and fifty-five dollars ($326,655) in Rate Periods Two through Ten, is not annually adjusted, and shall be zero (0) in any subsequent Rate Period unless Parties mutually agree to a different amount.

5. Direct Lease Costs. The Direct Lease Costs amount is zero (0) in Rate Periods Two through Ten, is not annually adjusted, and shall be zero in any subsequent Rate Period unless Parties mutually agree to a different amount.
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December 3, 2020 Page E1-4 City of Cupertino/Recology Franchise Exhibit E1

6. Allocated Lease Costs. The Allocated Lease Costs amount is one hundred eighty thousand dollars ($180,000) in Rate Periods Two through Ten (including interest costs for Allocated General and Administrative of $0, Allocated Vehicle Maintenance costs of $0, and Allocated Container Maintenance of $0), is not annually adjusted, and shall remain unadjusted in any subsequent Rate Period unless Parties mutually agree to a different amount.

7. Total Pass-Through Costs. Total Pass-Through Costs for the coming Rate Period are the sum of the amounts in this Exhibit E1, Section 2.C.1-6 above.

D. Total Calculated Costs before City Fees/Reimbursements. The Total Calculated Costs before City Fees/Reimbursements shall be the sum of the Total Annual Cost of Operations, Profit, and Total Pass-Through Costs for the coming Rate Period.

E. City Fees/Reimbursements

1. Franchise Fee. Franchise Fees for the coming Rate Period shall equal twelve percent (12%) of projected Gross Receipts for the coming Rate Period less any other City Fees. While the Franchise Fee is calculated based on Gross Receipts less any other City Fees for the purposes of this formula, it shall be paid out of Contractor’s profit.

2. Solid Waste Fund Operations Fee. The Solid Waste Fund Operations Fee payment for the coming Rate Period shall equal the total Solid Waste Fund Operations Fee paid to the City in the most-recently completed twelve- (12) month period multiplied by one (1) plus the Annual Percentage Change in the CPI-U, or such other amount as is determined by City in accordance with Section 7.2.

3. Other City Fees. The amount for the coming Rate Period of any other fees established by City under Section 7.3.

4. Rate Application Review Costs. The amount that Contractor is required to pay City to reimburse City for City’s costs, including consulting and legal fees, associated with determination of Rates for the coming Rate Period.

5. Total City Fees/Reimbursements. The Total City Fees/Reimbursements for the coming Rate Period shall equal costs calculated in this Exhibit E1, Section 2.E.1-4 above; provided, however, that any adjustment in any such fee, whether pursuant to the relevant index or as the result of the decision of the City, shall be pass-through fees (excluded from the calculation of profit) and reflected in the Total City Fees/Reimbursements.

F. Other Adjustments. From time to time during the Term of the Agreement, it may be necessary to make other adjustments to the compensation calculations, either as mutually agreed or as required under various provisions of this Agreement. For example, if the City elects to roll-under a negative Rate adjustment to a future year, the dollar value of that negative adjustment shall be reflected as an adjustment. In such case, the adjustment would be a reduction to the Total Calculated Costs. Amounts that Contractor is entitled to recover under this Agreement shall be reflected as a positive adjustment that increases Total Calculated Costs. 283
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December 3, 2020 Page E1-5 City of Cupertino/Recology Franchise Exhibit E1 G. Total Calculated Costs. The Total Calculated Costs for the coming Rate Period shall equal the sum of the Total Annual Cost of Operations, Profit, Total Pass-Through Costs, Total City Fees/Reimbursements, and Other Adjustments (if applicable), for the coming Rate Period.

3. TOTAL RATE ADJUSTMENT FACTOR
The Total Rate Adjustment Factor shall equal: (i) the Total Calculated Costs for the coming Rate Period divided by (ii) the amount obtained by subtracting the City Payments for the then-current Rate Period from the Total Calculated Costs for the then-current Rate Period. The Total Rate Adjustment Factor shall be rounded to the nearest thousandth.

4. ADJUSTMENT OF RATES
City may, as part of the Rate adjustment process for the coming Rate Period, do either or both of the following:

A. Agree to make a City Payment in the coming Rate Period, so as to reduce the Rate increase that would otherwise occur in that Rate Period; and/or,
B. Request a change in the relationship of individual Rates in comparison with other Rates, which may include changing the relationship of Rates across sector(s) and/or material stream(s). Section

8.2.D (Rate Structure) shall apply to any change under this subsection 4.B. If City wishes to do this, then City may request the Contractor to resubmit its Rate application by sector(s) and/or material type(s), so as to enable City to address over/under-funding of particular sector(s) and/or material type(s).

If City does either 4.A or 4.B above, then Rates shall be adjusted such that projected Gross Receipts for the coming Rate Period at the adjusted Rates, plus any City Payments that City agrees to make for that coming Rate Period, equal or exceed Total Calculated Costs for the coming Rate Period.

If City does neither 4.A nor 4.B above, then each then-current Rate shall be multiplied by the Total Rate Adjustment Factor, to calculate the effective Rate for the coming Rate Period. The adjustment to each Rate shall be rounded to the nearest cent.

5. EXAMPLES
The following examples illustrates the index-based adjustment method for determining Rates for Rate Period Five. The dollar amounts shown are hypothetical amounts for Total Calculated Costs for Rate Period Four (February 1, 2024 through January 31, 2025) and the adjustment factors are based on assumed changes in the various indices between the Average Index Values for the twelve (12) months ending January 2023 and for the twelve (12) months ending January 2024. Example A depicts a standard index-based adjustment, wherein the calculated Total Calculated Costs increased greater than zero percent (0%) and less than five percent (5%) over the prior Rate Period. Example B depicts an index-based adjustment wherein the calculated Total Calculated Costs resulted in a decrease from the prior Rate Period.

A. Example A

1. Assumptions for Example Adjustment to Contractor’s Compensation:
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December 3, 2020 Page E1-6 City of Cupertino/Recology Franchise Exhibit E1 Most-Recently Completed Rate Period = Rate Period Three (February 1, 2023 through January 31, 2024)
Then-current Rate Period = Rate Period Four (February 1, 2024 through January 31, 2025) Coming Rate Period = Rate Period Five (February 1, 2025 through January 31, 2026) Solid Waste Disposal Cost per Ton for the coming Rate Period = $52.27 per Ton (C&D Processing Cost assumed to be same as Solid Waste Disposal Cost) Recyclable Materials Processing Costs per Ton for the coming Rate Period = $39.78 per Ton Residential Organic Materials Processing Costs per Ton for the then-current Rate Period = $98.65 per Ton
Commercial Organic Materials Processing Costs per Ton for the then-current Rate Period = $134.20 per Ton
Annual Percentage Change in the ECI = 0.018
Annual Percentage Change in the CPI-U = 0.040
Annual Percentage Change in the Motor Vehicle Maintenance and Repair Index = 0.031 Annual Percentage Change in the Fuel Index = 0.075
Solid Waste Fund Operations Fee – Directed by City to increase by CPI-U for Rate Period 5 Last twelve (12) months of Gross Receipts = $18,600,000 Rate Period 4 City Payment = $279,544
Tonnages for the most-recently completed twelve- (12) month period:

Solid Waste – 18,000 Tons
Recyclable Materials – 8,000 Tons
Residential Organic Materials – 9,300 Tons
Commercial Organic Materials – 5,200 Tons
C&D – 2,500 Tons

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December 3, 2020 Page E1-7 City of Cupertino/Recology Franchise Exhibit E1 Note: All values presented in this table are hypothetical and used for illustrative purposes only.

TABLE 1A
Example A Calculation of Total Calculated Costs for Rate Period Five Rate Period
Four
Adjustment
Index
Adjustment
Factor
Rate Period
Five
Processing Tip Fee Adjustment (per Ton)
Solid Waste Disposal Tip Fee 50.26 $ N.A. N.A. 51.77 $
Recyclables Material Processing Rebate 38.25 $ N.A. N.A. 39.40 $ Residential Organic Materials Processing Tip Fee 98.65 $ CPI-U 1+0.040 102.60 $ Commercial Organic Materials Processing Tip Fee 134.20 $ CPI-U 1+0.040 139.57 $ C&D Processing Tip Fee* 50.26 $ N.A. N.A. 51.77 $
Annual Cost of Operations
Labor-related Costs 4,443,290 $ ECI 1+0.018 4,523,269 $ Vehicle-related Costs (excluding fuel) 643,477 $ MVI 1+0.031 663,425 $ Fuel Costs 383,049 $ Fuel Index 1+0.075 411,778 $
Other Costs 353,725 $ CPI-U 1+0.040 367,874 $
Direct Depreciation 905,853 $ N.A. N.A. 905,853 $
Allocated Costs (Labor, Vehicle, Fuel, and Other Costs) $ CPI-U 1+0.040 3,445,355 3,312,841 $ Allocated Costs (Depreciation and Start-Up) 35,311 $ N.A. N.A. 35,311 $ Total Annual Cost of Operations 10,077,545 $ 10,352,864 $ Profit (assuming operating ratio of .725) 3,822,517 $ 3,926,948 $ Pass Through Costs
Solid Waste Disposal Costs 881,109 $ Tip Fee x Tons 18,000 x $51.77 931,787 $ Recyclable Materials Processing Costs 308,522 $ Tip Fee x Tons 8,000 x $39.40 315,186 $ Residential Organic Materials Processing Costs 913,425 $ Tip Fee x Tons 9,300 x $102.60 954,179 $ Commercial Organic Materials Processing Costs 694,383 $ Tip Fee x Tons 5,200 x $139.57 725,749 $ C&D Processing Costs 127,475 $ Tip Fee x Tons 2,500 x $51.77 129,415 $ Reusable Materials Handling Costs - $ Tip Fee x Tons 0 x $0.00 - $ Interest Expense 326,655 $ N.A. N.A. 326,655 $
Direct Lease Costs - $ N.A. N.A. -$
Allocated Lease Costs $ 180,000 N.A. N.A. $ 180,000
Total Pass-Through Costs $ 3,431,569 $ 3,562,971
Total Calculated Costs before City Reimbursements $ 17,331,632 $ 17,842,783 Cost Reimbursements to City
Solid Waste Fund Operations Fee $ 1,547,912 CPI-U** 1+0.040 1,609,829 $ Total Reimbursements to City $ 1,547,912 $ 1,609,829
Total Calculated Costs $ 18,879,544 $ 19,452,611
Gross Operating Margin $ 3,822,517 $ 3,926,948
Franchise Fee $ 2,284,235 N.A. N.A. 2,313,732 $
Net Profit Margin $ 1,538,282 $ 1,613,217
Other Adjustments (City Payments) $ (279,544) $ (171,514) **The Solid Waste Fund Operations Fee may be increased by the CPI-U or at the City's discretion. *Newby currently charges the same rate for Solid Waste Disposal and C&D Processing. If the City designates a new facility(ies) for disposal and processing, there may be two separate tip fees.
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December 3, 2020 Page E1-8 City of Cupertino/Recology Franchise Exhibit E1

2. Example Calculation of the Rate Adjustment Factor and Adjusted Rate for Rate Period Five Rate Adjustment Factor = $19,452,611/($18,879,544-$279,544) = 1.046 Proposed City Payment as detailed in Exhibit E1 Section 4.A = $171,514 City does not propose resubmission of individual Rates that address over/under-funding of particular sector(s) and/or material type(s) as detailed in Exhibit E1 Section 4.B.

Rate Adjustment Factor considering City Payment = ($19,425,611-$171,514)/($ 18,879,544-$279,544) =

1.037
32-gallon Single-Family Rate for Rate Period Five = $45.41 x 1.037 = $47.07, which shall be effective February 1, 2025.

B. Example B

1. Assumptions for Example Adjustment to Contractor’s Compensation:

Most-Recently Completed Rate Period = Rate Period Three (February 1, 2023 through January 31, 2024)
Then-current Rate Period = Rate Period Four (February 1, 2024 through January 31, 2025) Coming Rate Period = Rate Period Five (February 1, 2025 through January 31, 2026) Solid Waste Disposal Cost per Ton for the coming Rate Period = $52.27 per Ton (C&D Processing Cost assumed to be same as Solid Waste Disposal Cost) Recyclable Materials Processing Costs per Ton for the coming Rate Period = $39.78 per Ton Residential Organic Materials Processing Costs per Ton for the then-current Rate Period = $98.65 per Ton
Commercial Organic Materials Processing Costs per Ton for the then-current Rate Period = $134.20 per Ton
Annual Percentage Change in the ECI = (0.018)
Annual Percentage Change in the CPI-U = (0.040)
Annual Percentage Change in the Motor Vehicle Maintenance and Repair Index = 0.031 Annual Percentage Change in the Fuel Index = (0.075)
Solid Waste Fund Operations Fee – Directed by City to remain flat for Rate Period 5 Last twelve (12) months of Gross Receipts = $18,600,000 Rate Period 4 City Payment = $279,544
Tonnages for the most-recently completed twelve- (12) month period:

Solid Waste – 18,000 Tons
Recyclable Materials – 8,000 Tons
Residential Organic Materials – 9,300 Tons
Commercial Organic Materials – 5,200 Tons
C&D – 2,500 Tons

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December 3, 2020 Page E1-9 City of Cupertino/Recology Franchise Exhibit E1 Note: All values presented in this table are hypothetical and used for illustrative purposes only.

TABLE 2A
Example B Calculation of Total Calculated Costs for Rate Period Five Rate Period
Four
Adjustment
Index
Adjustment
Factor
Rate Period
Five
Processing Tip Fee Adjustment (per Ton)
Solid Waste Disposal Tip Fee $ N.A. N.A. 50.26 $ 51.77
Recyclables Material Processing Rebate $ N.A. N.A. 38.25 $ 39.40 Residential Organic Materials Processing Tip Fee $ CPI-U 1+ -0.040 98.65 $ 94.71 Commercial Organic Materials Processing Tip Fee 134.20 $ CPI-U 1+ -0.040 128.83 $ C&D Processing Tip Fee* $ N.A. N.A. 50.26 $ 51.77
Annual Cost of Operations
Labor-related Costs $ 4,443,290 ECI 1+ -0.018 4,363,310 $ Vehicle-related Costs (excluding fuel) $ 643,477 MVI 1+0.031 663,425 $ Fuel Costs $ Fuel Index 1+ -0.075 354,321 383,049 $
Other Costs $ 353,725 CPI-U 1+ -0.040 339,576 $
Direct Depreciation $ 905,853 N.A. N.A. $ 905,853
Allocated Costs (Labor, Vehicle, Fuel, and Other Costs) 3,312,84 $ 1 CPI-U 1+ -0.040 3,180,327 $ Allocated Costs (Depreciation and Start-Up) $ 35,311 N.A. N.A. $ 35,311 Total Annual Cost of Operations $ 10,077,545 $ 9,842,123 Profit (assuming operating ratio of .725) $ 3,822,517 $ 3,733,219 Pass Through Costs
Solid Waste Disposal Costs $ Tip Fee x Tons 18,000 x $51.77 931,787 881,109 $ Recyclable Materials Processing Costs $ Tip Fee x Tons 8,000 x $39.40 315,186 308,522 $ Residential Organic Materials Processing Costs $ Tip Fee x Tons 9,300 x $94.71 880,780 913,425 $ Commercial Organic Materials Processing Costs 694,383 $ Tip Fee x Tons 5,200 x $128.83 669,922 $ C&D Processing Costs $ Tip Fee x Tons 2,500 x $51.77 129,415 127,475 $ Reusable Materials Handling Costs $ Tip Fee x Tons 0 x $0.00 - -$ Interest Expense $ 326,655 N.A. N.A. $ 326,655
Direct Lease Costs $ N.A. N.A. - -$
Allocated Lease Costs $ 180,000 N.A. N.A. $ 180,000
Total Pass-Through Costs $ 3,431,569 $ 3,433,746
Total Calculated Costs before City Reimbursements $ 17,331,632 $ 17,009,087 Cost Reimbursements to City
Solid Waste Fund Operations Fee $ 1,547,912 N.A.** $ 1,547,912 Total Reimbursements to City $ 1,547,912 $ 1,547,912
Total Calculated Costs $ 18,879,544 $ 18,556,999
Gross Operating Margin $ 3,822,517 $ 3,733,219
Franchise Fee $ 2,284,235 N.A. N.A. 2,284,235 $
Net Profit Margin $ 1,538,282 $ 1,448,984
Other Adjustments (City Payments) $ (279,544) -$
**The Solid Waste Fund Operations Fee may be increased by the CPI-U or at the City's discretion. *Newby currently charges the same rate for Solid Waste Disposal and C&D Processing. If the City designates a new facility(ies) for disposal and processing, there may be two separate tip fees.
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December 3, 2020 Page E1-10 City of Cupertino/Recology Franchise Exhibit E1

2. Example Calculation of the Rate Adjustment Factor and Adjusted Rate for Rate Period Five Total Calculated Costs = $18,556,999 < ($18,879,544-$279,544); Adjusted Total Calculated Costs = $18,600,000 (Total Calculated Costs less City Payments from prior Rate Period) Rate Adjustment Factor = $18,600,000/ $18,600,000= 1.00 No City Payment is proposed as clarified in Exhibit E1 Section 4.A as Total Calculated Costs for the coming Rate Period < Total Calculated Costs less City Payment from the then-current Rate Period.
32-gallon Single-Family Rate for Rate Period Five = $45.41 x 1.00= $45.41, which shall be effective February 1, 2025 (i.e., NO RATE ADJUSTMENT).

NOTE: Except if requested by the City, the rates will not change from prior Rate Period. The City may request Contractor resubmit individual Rates that address over/under-funding of particular sector(s) and/or material type(s), as described in Exhibit E1 Section 4.B, where rates still generating the same total rate revenue.

Subsequent Rate Period Adjustment. $18,600,000 - $18,556,999 = $43,001 cost savings to be applied as an “Other Adjustment” in the subsequent Rate Period adjustment calculations as an offset to Contractor’s Total Calculated Costs.

3. OTHER
If an index described in Exhibit E is discontinued, the successor index with which it is replaced shall be used for subsequent calculations. If no successor index is identified by the Bureau of Labor Statistics, the index which is most comparable shall be used.
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December 3, 2020 Page E2-1 City of Cupertino/Recology Franchise Exhibit E2

1. GENERAL
The Parties shall use the cost-based Rate adjustment method described in this Exhibit to determine Rates for the Rate Periods specified in Section 8.2, or in the event of a change in scope (under the circumstances described in Section 3.5) or Change in Law, or pursuant to Section 3.2 or 8.2 or the third paragraph of Section 1 of Exhibit E1.1
The cost-based adjustment involves review of Contractor’s actual cost of operations and operational statistics (e.g., staffing levels, routes, route hours, Customers and their service levels) to determine the Actual Allowable Total Annual Cost of Operations for the most-recently completed Rate Period, the Forecasted Total Calculated Costs for the coming Rate Period, and the Contractor’s Compensation.

The intent of performing the cost-based adjustment is to examine the actual impact of changes in inflation or deflation, the number of Customers, and the Service Level of Customers.

The Forecasted Total Annual Cost of Operations calculated pursuant to this Exhibit E2 for the coming Rate Period (adjusted per the first paragraph of Section 2 of this Exhibit E2, if applicable) may not exceed by more than five percent (5%) the Total Annual Cost of Operations for the then-current Rate Period.

In the event that the cost-based adjustment calculated in accordance with this Exhibit E2 results in a negative Rate Adjustment Factor, the City reserves the right to “roll-under” the Rate reduction, such that there is no Rate adjustment in the Rate Period for which the negative Rate Adjustment Factor was calculated, but the calculated Rate reduction may be deferred to the following Rate Period, as a credit against future Rate increases.

A. Contractor’s Rate Application. Contractor’s Rate application for any Rate Period where Rates shall be adjusted using the cost-based methodology described in this Exhibit E2 shall include the information described in this Section 1.A. With the exception of the information identified in Section 1.A.1, and 1.A.2 below, all other items listed may be requested by the City Contract Manager at any time during the Term of the Agreement and Contractor shall comply with that request in a timely fashion.

1. Financial Statements. Within one hundred twenty (120) calendar days after the close of the Agreement year, Contractor shall deliver to the City one (1) hard copy of the reviewed consolidated financial statements of Contractor for the preceding Agreement year. Financial statements shall include a supplemental combining schedule showing Contractor’s results of operations, including the specific revenues and expenses in connection with the operations provided for in this Agreement separate from others included in such financial statements.

The financial statements and footnotes shall be prepared in accordance with Generally Accepted Accounting Principles (GAAP) consistently applied and fairly reflecting the results of operation and Contractor’s financial condition. Annual financial statements shall be reviewed, in accordance with Generally Accepted Auditing Standards (GAAS) by a Certified Public Accountant (CPA) licensed (in good standing) to practice public accounting in the State as determined by the State Department of Consumer Affairs Board of Accountancy. 1 Exhibit E2 dates (such as providing for use of 12 months of tonnage ending in October) assume use of the Exhibit E2 for an annual Rate adjustment; dates for use of data should be adjusted as necessary to accommodate any offschedule adjustment. 291
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COST-BASED RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E2-2 City of Cupertino/Recology Franchise Exhibit E2

2. Financial Statement Reconciliation. Contractor shall provide a schedule that clearly and accurately ties the amounts shown in Contractor’s Rate application to Contractor’s financial statements. Such schedule shall include any and all allocation factors and methodologies used to report cost and operating information for services provided to the City under this Agreement separately from Contractor obligations related to other public or private entities.

Such statement of reconciliation shall include:
a. General explanation of the various allocation methodologies used for each Rate application line item.
b. Specific examples of each type of allocation used showing how an entry is reported in the general ledger and ties to the Rate application.
c. Statement indicating whether there have been any changes in allocation methods used since the last Rate application. If any allocation methods have changed clearly identify those changes.

3. Operational Information.
a. Routes by Line of Business:
i. Number of routes per day.
ii. Types of vehicles.
iii. Crew size per route.
iv. Number of full time equivalent (FTE) routes.
v. Number of accounts and cubic yards scheduled per route. vi. Total route hours per Line of Business per year.
vii. Average cost per route.
b. Personnel:
i. Organizational chart.
ii. Job classifications and number of employees (e.g., administrative, Customer service representatives, drivers, supervisors, educational staff). iii. Union wages by job classification.
iv. Number of FTE positions for each job classification. v. Number of hours per job classification per year.
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EXHIBIT E2

COST-BASED RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E2-3 City of Cupertino/Recology Franchise Exhibit E2 c. Productivity Statistics:
i. Average Number of accounts per route per day by Line of Business. ii. Average number of setouts per route per day by Line of Business. iii. Average Tons per route per day by vehicle type (i.e., side-loader, front-loader, rolloff). iv. Average cubic yards of Collection scheduled per route. d. Vehicles:
i. List of Collection vehicles including year purchased and mileage. ii. Average age of mobile equipment with oldest and newest. e. Operational Changes:
i. Number of routes.
ii. Staffing.
iii. Supervision.
iv. Collection services.

5. Variance Analysis. Provide the following variance analysis for each Line of Business. For any variances greater than five percent (5%) annually, Contractor shall provide sufficient rationale to support variance:
a. Variance analysis comparing current Rate Period to each of the prior Rate Periods of Agreement.
b. Variance analysis comparing current Rate Period to each of the future projected Rate Periods.

6. Projections. Provide the following projection data:
a. Provide support for the basis for projected Gross Receipts and line item expenses, clearly indicate the supporting calculations and assumptions. b. Provide support for the most recent twelve (12) months of Tonnage data for Rate Period, ending in the May preceding the August 1 Rate application due date. Clearly indicate the supporting calculations and assumptions.
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EXHIBIT E2

COST-BASED RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E2-4 City of Cupertino/Recology Franchise Exhibit E2

2. FORECASTING TOTAL CALCULATED COSTS
The Total Calculated Costs for the coming Rate Period shall be forecasted in the manner described in this Section, assuming no change in operations between the most-recently completed Rate Period and the coming Rate Period. If there is or is reasonably expected to be a change in operations directed by the City or resulting from a Change in Law (e.g., a change in a Designated Facility as described in Section 3.2 that affects Contractor’s labor, vehicle-related and fuel costs, or change in scope as described in Section 3.5), then notwithstanding any other provision, appropriate adjustments shall be made to forecasted cost and revenue line items so that they reflect reasonable good faith estimates of the cost and revenue impacts of the change, and such cost and revenue impacts shall be excluded from Forecasted Total Annual Cost of Operations for the coming Rate Period in determining whether the five percent (5%) cap set forth in Section 1 of this Exhibit E2 has been met.

A. Forecasting Total Annual Cost of Operations

1. Determine Actual Allowable Total Annual Cost of Operations. The City or its designated representative(s) shall review Contractor's financial statements, books, and records to determine Contractor's “Actual Allowable Total Annual Cost of Operations” for the mostrecently completed Rate Period. Such cost shall be Contractor’s costs to perform all the obligations of Contractor under this Agreement (excluding the costs of Disposal and processing fees and of payments to City) in the manner required by this Agreement, and shall be divided into the following cost categories:
a. Actual labor-related costs
b. Actual vehicle-related costs (excluding fuel and depreciation) c. Actual fuel costs
d. Actual other costs (as defined on Form 6E of Exhibit G2) e. Direct Container and equipment depreciation costs (in the amount specified in Exhibit E1)
f. Actual allocated costs (labor, vehicle, general and administrative, and other costs) g. Actual allocated costs (depreciation and start-up) (in the amount stated in Exhibit E1)

2. Non-Allowable Costs. The following list of non-allowable costs shall be deducted from Contractor’s actual costs when determining the Actual Allowable Total Annual Cost of Operations.
a. Labor, equipment, fuel, and start-up costs for personnel, vehicles, and facilities that are not specified in the proposal forms contained in Exhibit G2 and that cannot be demonstrated to have been incurred as part of the performance of services under this Agreement.
b. Payments to directors and/or Owners of Contractor unless the amount paid is 294
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COST-BASED RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E2-5 City of Cupertino/Recology Franchise Exhibit E2 reasonable compensation for services actually rendered. Reasonableness shall be determined based on available market pricing for similar services and shall be in the sole discretion of the City.
c. Travel expenses and entertainment (above five thousand dollars ($5,000) annually in total) expenses, unless authorized in advance by the City. d. Payments to repair damage to public or private property for which Contractor is legally liable.
e. Fines or penalties of any nature.
f. Liquidated Damages assessed under this Agreement.
g. Federal or State income taxes.
h. Cash donations or value of in-kind services provided to charitable, political, youth, civic, or other community organizations, unless such donations or in-kind services are expressly provided for under this Agreement, or have been previously approved in writing as an allowable expense by the City Contract Manager. i. Depreciation or interest expense for Collection vehicles, Containers, other equipment, offices and other facilities if such items are leased as specified in Exhibit G2. j. Attorney's fees and other expenses incurred by Contractor in any court proceeding in which the City and Contractor are adverse Parties.
k. Attorney's fees and other expenses incurred by Contractor arising from any act or omission in violation of this Agreement.
l. Attorneys' fees and other expenses incurred by Contractor in any court proceeding in which Contractor's own negligence, violation of law or regulation, or wrong doing are in issue and occasion, in whole or in part, the attorneys' fees and expenses claimed; and attorneys' fees and expenses incurred by Contractor in a court proceeding in which the legal theory or statute providing a basis of liability against Contractor also provides for separate potential liability for the City derived from the action of its citizens or Rate payers (such as in a CERCLA lawsuit) unless Contractor is found not liable in such claims and such claims arise from acts or occurrences within the Term of the Agreement. m. Payments to Related-Party Entities for products or services, in excess of the cost to the Related-Party Entities for those products or services. Approved Facilities that are operated by Related-Party Entities or Affiliates of Contractor and have a stipulated tipping fee in Contractor’s Proposal shall not be subject to this limitation and only the tipping fee and any contemplated adjustments thereto shall be allowable expenses. n. Goodwill.
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EXHIBIT E2

COST-BASED RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E2-6 City of Cupertino/Recology Franchise Exhibit E2 o. Unreasonable profit-sharing distributions.
p. Replacement costs for Containers that need to be replaced because the useful life of such Container was less than the Term.
q. Administrative costs greater than the administrative costs presented in Contractor’s Proposal (i.e., each of the items listed as General & Administrative on Form 6F of Exhibit G2) adjusted annually by one (1) plus the Annual Percentage Change in the CPI-U. r. Bad debt write-offs in excess of two percent (2%) of annual Gross Receipts.

3. Forecast Total Annual Cost of Operations. Forecasted Total Annual Cost of Operations for the coming Rate Period shall be calculated based on Actual Allowed Total Cost of Operations for the most-recently completed Rate Period determined in accordance with Sections 2.A.1 and 2.A.2 above. The forecasts shall be performed in the following manner:
a. Forecasted labor-related costs shall be calculated for the coming Rate Period by (i) multiplying the allowed labor-related costs, both direct and allocated, for the mostrecently completed Rate Period by one (1) plus the Annual Percentage Change in the CPI-U, and (ii) multiplying the result of step one once more by one (1) plus the Annual Percentage Change in the CPI-U.
b. Forecasted vehicle-related costs (excluding fuel and depreciation costs) shall be calculated for the coming Rate Period by (i) multiplying the allowed vehicle-related costs, both direct and allocated, for the most-recently completed Rate Period by one (1) plus the Annual Percentage Change in the Motor Vehicle Maintenance and Repair Index, and (ii) multiplying the result of step one once more by one (1) plus the Annual Percentage Change in the Motor Vehicle Maintenance and Repair Index. c. Forecasted fuel costs shall be calculated for the coming Rate Period by (i) multiplying the allowed fuel costs, both direct and allocated, for the most-recently completed Rate Period by one (1) plus the Annual Percentage Change in the Fuel Index, and (ii) multiplying the result of step one once more by one (1) plus the Annual Percentage Change in the Fuel Index.
d. Forecasted other costs shall be calculated for the coming Rate Period by (i) multiplying the allowed other-related costs, both direct and allocated, for the most-recently completed Rate Period by one (1) plus the Annual Percentage Change in CPI-U, and (ii) multiplying the result of step one once more by one (1) plus the Annual Percentage Change in the CPI-U.
e. Forecasted direct depreciation expense shall be the amount specified in Exhibit G2 for vehicles, Containers, and facilities. Direct depreciation expense is a fixed cost and is not subject to inflation.
f. Forecasted allocated labor-related, vehicle-related, general and administrative, and other costs shall be calculated for the coming Rate Period by (i) multiplying the allowed 296
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EXHIBIT E2

COST-BASED RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E2-7 City of Cupertino/Recology Franchise Exhibit E2 other-related costs for most-recently completed Rate Period by one (1) plus the Annual Percentage Change in CPI-U, and (ii) multiplying the result of step one once more by one (1) plus the Annual Percentage Change in CPI-U.
g. Forecasted allocated depreciation and start-up expense shall be the amount specified in Section 2.A.7 of Exhibit E1 for vehicles, Containers, and facilities. h. Forecasted Total Annual Cost of Operations for the coming Rate Period shall equal the sum of the following costs, which shall have been calculated in accordance with the procedures in this Exhibit E2, and shall be subject to the five percent (5%) cap described in Section 1 of this Exhibit E2:
i. Forecasted labor-related costs
ii. Forecasted vehicle-related costs (excluding fuel and depreciation costs) iii. Forecasted fuel costs
iv. Forecasted other costs
v. Forecasted direct depreciation expense
vi. Forecasted allocated labor-related, vehicle-related, general and administrative, and other costs
vii. Forecasted allocated costs for depreciation and start-up B. Forecast Profit. Contractor shall be entitled to Profit on Forecasted Total Annual Cost of Operations. Profit shall be calculated using an operating ratio of seventy-two and one-half percent (72.5%) as proposed by Contractor and described in Exhibit G2. Profit shall be calculated using the following formula:

Profit = (Forecasted Total Annual Cost of Operations / Operating Ratio) – Forecasted Total Annual Cost of Operations
For example:

1. Assuming an operating ratio of 72.5

2. Assuming a Forecasted Total Annual Cost of Operations of $1,000,000

3. Profit = ($1,000,000 / 0.725) – $1,000,000 = $379,310.35 C. Forecast Pass-Through Costs. Pass-Through Costs for the coming Rate Period shall be forecasted in the following manner:

1. Forecasted Recyclable Materials Processing costs shall be calculated in the manner described in Section 2.C.1 of Exhibit E1.
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EXHIBIT E2

COST-BASED RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E2-8 City of Cupertino/Recology Franchise Exhibit E2

2. Forecasted Residential Organic Materials Processing costs shall be calculated in the manner described in Section 2.C.2 of Exhibit E1.

3. Forecasted Commercial Organic Materials Processing costs shall be calculated in the manner described in Section 2.C.2 of Exhibit E1.

4. Forecasted Disposal costs shall be calculated in the manner described in Section 2.C.3 of Exhibit E1.

5. Forecasted Interest Expense. Interest Expense is three hundred twenty six thousand, six hundred and fifty-five dollars ($326,655) per year and shall not be adjusted over the Term of the Agreement. See Section 2.C.4 of Exhibit E1.

6. Forecasted Direct Lease Costs. Direct Lease Costs are zero dollars ($0) per year and shall not be adjusted over the Term of the Agreement, unless the Parties mutually agree to a different amount for any Rate Period after Rate Period Ten.

7. Forecasted Allocated Lease Costs. Allocated Lease Costs are one hundred eighty thousand dollars ($180,000) per year and shall not be adjusted over the Term of the Agreement.

D. Forecast City Fees/Reimbursements. The City Fees/Reimbursements shall be calculated in the manner described in Section 2.E of Exhibit E1.

E. Other Adjustments. Other Adjustments shall be determined in the manner described in Section

2.F of Exhibit E1.

F. Forecasted Total Calculated Costs for the coming Rate Period shall equal the sum of Forecasted Total Annual Cost of Operations, Forecasted Profit, Forecasted Pass-Through Costs, Forecasted City Fees/Reimbursements, and Other Adjustments (if applicable), each determined as provided above. Such Forecasted Total Calculated Costs shall become the Total Calculated Costs for the coming Rate Period, for purposes of future index-based adjustments under Exhibit E1.

3. PROJECTED GROSS RECEIPTS
Projected Gross Receipts at then-current Rates shall reflect projected annual Gross Receipts from all Customers based on then-current Rates and then-current Customer Service Levels, inclusive of all Rates and special charges authorized under this Agreement. For the purposes of determining Customer Service Levels for on-call services (e.g., drop-box service provided less than weekly, Bin rentals) and special charges (e.g., push charges, lock/unlock charges), the prior twelve (12) months of billing activity (ending in the May preceding the August 1 Rate application due date) for such services and special charges shall be used.

Contractor shall also calculate projected Gross Receipts by sector(s) and/or material stream(s) based on then-current Rates and then-current Customer Service Levels, inclusive of all Rates and special charges authorized under this Agreement.
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EXHIBIT E2

COST-BASED RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E2-9 City of Cupertino/Recology Franchise Exhibit E2

4. TOTAL RATE ADJUSTMENT FACTOR
The Total Rate Adjustment Factor shall equal the Forecasted Total Calculated Costs for the coming Rate Period divided by the projected Gross Receipts calculated in accordance with Section 3 of this Exhibit E2.

The Total Rate Adjustment Factor shall be rounded to the nearest thousandth.

5. ADJUSTMENT OF RATES
City may, as part of the Rate adjustment process for the coming Rate Period, do either or both of the following:

A. Agree to make a City Payment in the coming Rate Period, so as to reduce the Rate increase that would otherwise occur in that Rate Period; and/or,
B. Request a change in the relationship of individual Rates in comparison with other Rates, which may include changing the relationship of Rates across sector(s) and/or material stream(s). Section

8.2.D (Rate Structure) shall apply to any change under this subsection 5.B. If City wishes to do this, then City may request the Contractor to resubmit its Rate application by sector(s) and/or material type(s) so as to enable City to address over/under-funding of particular sector(s) and/or material type(s).

If City does either 5.A or 5.B above, then Rates shall be adjusted such that projected Gross Receipts for the coming Rate Period at the adjusted Rates, plus any City Payments that City agrees to make for that coming Rate Period, equal or exceed Forecasted Total Calculated Costs for the coming Rate Period.

If City does neither 5.A nor 5.B above, then each then-current Rate shall be multiplied by the Total Rate Adjustment Factor to calculate the effective Rate for the coming Rate Period. The adjustment to each Rate shall be rounded to the nearest cent.
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EXHIBIT F:

PERFORMANCE STANDARDS AND LIQUIDATED

DAMAGES
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EXHIBIT F

PERFORMANCE STANDARDS & LIQUIDATED DAMAGES
December 3, 2020 Page F-1 City of Cupertino/Recology Franchise Exhibit F The City wishes to establish standards of performance under the Agreement in each of the “Performance Areas” listed below. The City Contract Manager may monitor Contractor’s performance in each of those areas based on the “Overall Performance Indicator” listed below for each area. In the event that Contractor fails to meet the performance standard established for any “Overall Performance Indicator,” the City Contract Manager may review Contractor’s performance relative to the “Specific Performance Measures” within that performance area. In the event that the City Contract Manager determines that Contractor has failed to meet the performance standard established for any “Specific Performance Measure,” the City may in its sole discretion assess Liquidated Damages pursuant to Section 10.6 of the Agreement. Liquidated Damages, if assessed, shall only be assessed for the number of events, days, or other measure in excess of the acceptable performance level.

1. DEFINED TERMS
Exhibit F relies on the terms “Complaint,” “Service Opportunity,” and “Total Service Opportunities,” as defined in Exhibit A.

2. PERFORMANCE AREA NO. 1: SERVICE QUALITY AND RELIABILITY Overall Performance Indicator: Contractor’s service quality and reliability shall be considered acceptable by the City if the total number of calls and emails (including, without limitation: Complaints, inquiries, billing questions, service requests, and compliments) received by Contractor from Customers served under this Agreement does not exceed one (1) per one thousand (1,000) Total Service Opportunities in any calendar quarter. If the number exceeds this level, the City may in its sole discretion assess Liquidated Damages for the specific performance measures identified in the following table.

Specific
Performance
Measure Definition
Acceptable
Performance
Level
Liquidated
Damage
Amount
Missed Collections Each Service Opportunity where Contractor fails to Collect a Container from a Customer
who properly placed said Container for
Collection.

Less than one
(1) per one
thousand
(1,000) Service
Opportunities
$50/Event
Failure to Correct
Missed Collections
Each “Missed Collection” as defined above
that is not Collected pursuant to Section

4.10.3.B.

Less than (1)
per one
hundred (100)
missed
Collections
$50/Event
Failure to Return
Container to
Location of Setout
Failure to properly return empty Carts or Bins
to the Collection location, or to place Carts
upright.

Less than (1)
per one
thousand
(1,000) Service
Opportunities
$50/Event
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EXHIBIT F

PERFORMANCE STANDARDS & LIQUIDATED DAMAGES
December 3, 2020 Page F-2 City of Cupertino/Recology Franchise Exhibit F Specific
Performance
Measure Definition
Acceptable
Performance
Level
Liquidated
Damage
Amount
Failure to Clean-Up
Spillage
Pursuant to Section 5.3.C, each failure by
Contractor to clean up: (1) any items or
materials spilled during the Collection of a
Container; (2) any fluids spilled or leaked
from a Container or Collection vehicle prior
to leaving the Collection location; or, failure
by Contractor to notify the City within two
(2) hours of an observed spill.

Less than one
(1) per one
thousand
(1,000) Service
Opportunities
$100/Event
Damage to Property Each event of damage to either public or private property as a result of Collection
activity, including without limitation Curbs,
sidewalks, landscapes, Container enclosures
and gates, signs, light fixtures, and overhead
wires and cables.

Less than one
(1) per one
thousand
(1,000) Service
Opportunities
$250/Event
Excessive Noise Each Complaint received that is related to noise during Collection activity.

Less than one
(1) per one
thousand
(1,000) Service
Opportunities
$250/Event
Discourteous
Behavior
Each Complaint received that is related to
the discourteous behavior of Contractor’s
employees.

Less than one
(1) per one
thousand
(1,000) Service
Opportunities
$250/Event
Inaccurate Billing Each Complaint received where Contractor billed a Customer in error. Inaccurate billing
may include, but is not limited to: (i) either
over- or under-charging of the Customer
relative to the approved maximum Rates for
services; (ii) charging the Customer a Rate
that is not the same as other Customers with
the same Service Level; (iii) charging a
Customer for an increased Service Level prior
to providing the service; and, (iv) not
charging a Customer for reduced Service
Level within seven (7) days of the date
Customer requested the change, regardless
of whether or not Contractor delivers the
appropriate Containers or modifies the
Service Level within that timeframe.

Less than one
(1) per one
thousand
(1,000) bills
issued
$100/Event
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EXHIBIT F

PERFORMANCE STANDARDS & LIQUIDATED DAMAGES
December 3, 2020 Page F-3 City of Cupertino/Recology Franchise Exhibit F

3. PERFORMANCE AREA NO. 2: CUSTOMER SERVICE
Overall Performance Indicator: The level of Customer service provided by Contractor shall be considered acceptable if the total number of Complaints received by the City regarding Contractor does not exceed one (1) per one thousand (1,000) Total Service Opportunities in any calendar quarter. If the number exceeds this level, the City may in its sole discretion assess Liquidated Damages for the specific performance measures identified in the following table.

Specific
Performance
Measure Definition
Acceptable
Performance
Level
Liquidated
Damage
Amount
Failure to
Commence Service
Any failure by Contractor to deliver a
Container and begin providing Collection to a
Customer, at the Service Level requested by
said Customer, within seven (7) calendar days
of receiving such request. This may include a
new Customer receiving new service or an
existing Customer requesting a change in or
addition to existing Service Levels. This may
also include delivering Used Oil Recovery Kits
to Customers upon request.

Less than one
(1) per one
hundred (100)
service
requests
$50/Event
Failure to Replace
Container or
Remove Graffiti
Any failure by Contractor to replace or repair
a damaged Container within seven (7)
calendar days of receiving such a request
from a Customer, or any failure by Contractor
to remove graffiti from Containers within two
(2) Working Days following identification by
Contractor or notice by the City or Customer
if such graffiti includes any written or pictorial
obscenities, and otherwise within five (5)
Business Days.

No acceptable
failure level
$100/Event
Failure to Resolve
Complaint
Any failure by Contractor to resolve or
remedy a Complaint within seven (7)
calendar days of receiving such Complaint.

Less than one
(1) per one
hundred (100)
Complaints
$250/Event
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EXHIBIT F

PERFORMANCE STANDARDS & LIQUIDATED DAMAGES
December 3, 2020 Page F-4 City of Cupertino/Recology Franchise Exhibit F Specific
Performance
Measure Definition
Acceptable
Performance
Level
Liquidated
Damage
Amount
Failure to Answer
Phones; Respond to
Emails
Any failure by Contractor during normal
business hours to answer a Customer
telephone call within four rings, or to respond
to a Customer email. A call is not considered
to be answered if the Customer does not
speak with a live operator. A call is
considered to be answered if the Customer
hangs-up or abandons the call following a
hold time of less than three (3) minutes.

Less than one
(1) per one
thousand
(1,000) calls
received under
this Agreement
Less than one
(1) per one
thousand
(1,000) emails
received under
this Agreement
$50/Event
Excessive Call
Center Hold Time
Each occurrence of a call being placed “on
hold” for more than two (2) minutes.

Less than one
(1) per one
thousand
(1,000) calls
received under
this Agreement
$50/Event
Unauthorized Hours
of Operation
Each occurrence of Contractor Collecting
from Customers during unauthorized hours.

Less than one
(1) per one
thousand
(1,000) Service
Opportunities
$250/Event

4. PERFORMANCE AREA NO. 3: OUTREACH
Overall Performance Indicator: Contractor’s performance shall be considered acceptable if service meets the requirements of Section 4.7, Exhibit C, and the following table.

Specific
Performance
Measure Definition
Acceptable
Performance
Level
Liquidated
Damage
Amount
Failure to Perform
Public Outreach
Activities
Each failure by Contractor to develop,
produce, and distribute a public outreach
document or perform a community
outreach activity in the form and manner
required under Exhibit C to this
Agreement.

No acceptable
failure level
$500/Document
or Activity
Failure to Provide
Targeted Technical
Assistance
Each individual failure to provide targeted
technical assistance to a Commercial or
Multi-Family Customer, or to a City facility
in the manner required under Exhibit C to
this Agreement.

No acceptable
failure level
$50/Customer
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EXHIBIT F

PERFORMANCE STANDARDS & LIQUIDATED DAMAGES
December 3, 2020 Page F-5 City of Cupertino/Recology Franchise Exhibit F Specific
Performance
Measure Definition
Acceptable
Performance
Level
Liquidated
Damage
Amount
Delay in Annual
Outreach Plan
Failure to submit the initial annual
outreach plan by the Commencement Date
or November 1, or to submit a revised plan
within 15 Business Days after receiving the
City Contract Manager’s comments, as
required by Exhibit C, Section 1.A.

No acceptable
failure level
$250/Day

5. PERFORMANCE AREA NO. 4: DIVERSION
Overall Performance Indicator: Contractor’s Diversion performance, as provided in Section 5.11, shall be considered acceptable if (based on twelve (12) months of Collected Tonnage report data for any calendar year after 2021) the Diversion percentage is less than the Tonnage Baseline Diversion Percentage. The City may assess Liquidated Damages for the specific performance measures identified in the following table.

Specific
Performance
Measure Definition
Acceptable
Performance
Level
Liquidated
Damage
Amount
Failure to Maintain
Contractor’s
Minimum Required
Diversion Level by
Weight
Failure to meet Tonnage Baseline Diversion
Percentage specified in Section 5.11.B in
any calendar year after 2021.

No acceptable
failure level
$100/Ton of
material that
would have
needed to be
Diverted instead
of landfilled to
meet the
requirement for
the given
calendar year

6. PERFORMANCE AREA NO. 5: FACILITIES
Overall Performance Indicator: Contractor’s performance relative to facilities shall be considered acceptable when one hundred percent (100%) of all material types Collected by Contractor shall be Delivered to the appropriate Approved Facility (including Designated Facility(ies)) as required under Sections 4.1, 4.2 and 4.3 of this Agreement. If Contractor fails to meet this level of performance, the City may assess Liquidated Damages for the specific performance measures identified in the following table. 306
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EXHIBIT F

PERFORMANCE STANDARDS & LIQUIDATED DAMAGES
December 3, 2020 Page F-6 City of Cupertino/Recology Franchise Exhibit F Specific
Performance
Measure Definition
Acceptable
Performance
Level
Liquidated
Damage
Amount
Delivery to NonApproved Facility Each individual occurrence of delivering materials to a facility other than the
Approved Facility designated for each
material type under Sections 4.1, 4.2, and 4.3
of this Agreement.

No
acceptable
failure level
$100/Ton
Disposal of Material
Targeted for
Diversion
Each individual occurrence of Disposal rather
than Processing of Recyclable Materials,
Organic Materials, or C&D set out for
Collection by the Customer, unless the
contamination level in the Container exceeds
the acceptable contamination level specified
in this Agreement.

No
acceptable
failure level
$500/Ton
Mixing Material
Types During
Collection
Each individual Container that is Collected by
Contractor in a vehicle intended or
designated for the purpose of Collecting a
different material type (e.g., Recyclable
Materials Collected in Solid Waste vehicle,
Solid Waste Collected in Organic Materials
vehicle, etc.). This item does not apply to
collection in a Solid Waste vehicle of
Containers with a contamination level that
exceeds the acceptable contamination level
specified in this Agreement.

No
acceptable
failure level
$100/Container

7. PERFORMANCE AREA NO. 6: REPORTING
Overall Performance Indicator: Contractor’s reporting shall be considered acceptable if Reports required under Exhibit D and record requests allowed under Article 6 to this Agreement are received, complete, and accurate within seven (7) calendar days after the date due or date requested. If Contractor fails to meet this level of performance, the City may in its sole discretion assess Liquidated Damages for the specific performance measures identified in the following table.

Specific
Performance
Measure Definition
Acceptable
Performance
Level
Liquidated
Damage
Amount
Late Report Each occurrence of a report, as required
under Exhibit D to this Agreement, being
submitted after the due date. Reports shall
be considered late until they are submitted
in a complete and accurate format.

Less than
seven (7)
calendar days
after report
due date
$250/Day
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EXHIBIT F

PERFORMANCE STANDARDS & LIQUIDATED DAMAGES
December 3, 2020 Page F-7 City of Cupertino/Recology Franchise Exhibit F Specific
Performance
Measure Definition
Acceptable
Performance
Level
Liquidated
Damage
Amount
Failure to Maintain
or Provide Access
to Records
Each occurrence of the City Contract
Manager requesting information required
to be maintained by Contractor where
Contractor fails to provide such
information.

Less than
seven (7)
calendar days
after due date
$500/Event
Misleading/
Inaccurate
Reporting
Each occurrence of Contractor providing
materially or intentionally misleading or
inaccurate information or reporting to the
City under or in regard to this Agreement.

Typographical, cell reference,
mathematical, and/or logic errors shall not
be considered legitimate excuses from this
requirement, nor shall ignorance.

No acceptable
failure level
$500/Event

8. PERFORMANCE AREA NO. 7: SB 1383
Item
Specific Performance
Measure Definition
Acceptable
Performance
Level
Liquidated Damage
Amount

1. Failure to Provide
Recyclable Material
and Organic Material
Collection Services to
every Customer
Exceptions noted
below table
For each occurrence of
failing to provide Customers
with the three- Container
system, including Recyclable
Material and Organic
Materials. This item shall not
apply to missed pickups,
which is covered under
Performance Area No. 1.

No acceptable
failure level
$500/Customer

2. Failure to Conduct
Route reviews and
contamination
monitoring
Failure to conduct Route
reviews as required by
Section 4.13.1 of this
Agreement.

No acceptable
failure level
$150/Route review

3. Failure to Issue
contamination notices,
if permitted by City
Failure to issue
contamination notices as
required by Section 4.13.1 of
this Agreement.

No acceptable
failure level
$500/Route/Day
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EXHIBIT F

PERFORMANCE STANDARDS & LIQUIDATED DAMAGES
December 3, 2020 Page F-8 City of Cupertino/Recology Franchise Exhibit F Item
Specific Performance
Measure Definition
Acceptable
Performance
Level
Liquidated Damage
Amount

4. Commingling with NonCity Materials Commingling of materials Collected inside and outside
the City during Collection,
except as provided in Section

5.3.F and except for service
to the Creston Drive area
until the area is fully
annexed.

No acceptable
failure level
$1,000/Event

5. Failure to Comply with
Container Labeling and
Colors
For each occurrence of
Contractor’s failure to
comply with Container
labeling and color
requirements pursuant to
Section 5.6 of this
Agreement, and not
corrected within two (2)
Business Days of notice by
City.

No acceptable
failure level
$50 / Container /
occurrence

6. Failure to Conduct
Compliance Tasks
For each failure to conduct
any compliance review, or
cooperate in conducting
waste evaluations pursuant
to Sections 4.13 and 4.14,
and/or failure to conduct any
other SB 1383-related
inspection required by this
Agreement.

No acceptable
failure level
$250 / occurrence.

7. Failure to Conduct
Follow-Up Inspections
For each failure to conduct
an SB 1383 noncompliance
complaint investigation as
required by Section 4.14.C of
this Agreement.

No acceptable
failure level
$250 / occurrence.

The City shall not assess Liquidated Damages for Exhibit F.8, item 1, above, under the following circumstances:

A. City has granted the Customer a waiver pursuant to Section 4.12.2 of this Agreement; B. Contractor documents that Customer is compliant with the Cupertino Municipal Code and 14 CCR, Division 7, Chapter 12, Article 7;
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EXHIBIT F

PERFORMANCE STANDARDS & LIQUIDATED DAMAGES
December 3, 2020 Page F-9 City of Cupertino/Recology Franchise Exhibit F C. Contractor documents to the City that the Customer is being provided Recyclable Material and/or Organic Material Collection services from a City-permitted, or non-exclusively franchised, recycler or discarded materials service provider;
D. Contractor documents that Customer is sharing Recyclable Materials and/or Organic Materials Collection services with another Customer in a manner approved by the City; E. The City has failed to adopt a mandatory Recyclable Materials and Organic Materials ordinance; F. The Customer does not subscribe for service; or,
G. The Customer refuses to accept the service or the required Containers.

9. PERFORMANCE AREA NO. 8: COMPLIANT CONTAINERS
Overall Performance Indicator: Contractor’s Container replacement services shall be considered acceptable by the City if Contractor replaces Containers in accordance with Section 5.6. If Contractor fails to meet this level of performance, the City may in its sole discretion assess Liquidated Damages for the specific performance measures identified in the following table.

Specific
Performance
Measure
Definition
Acceptable
Performance
Level
Liquidated
Damage
Amount
Failure to Correct
Non-Conforming
Carts
Each occurrence after December 31, 2021
in which a Non-Conforming Cart (as defined
in Exhibit A and Section 5.6) is still in
service.

No acceptable
performance
level
$250/NonConforming
Cart not
exchanged
within two (2)
Business Days
after notice by
City for the first
fifty (50) NonConforming
Carts identified
by City;
thereafter,
$250/NonConforming
Cart.

By placing designee’s initials at the places provided, each Party specifically confirms the accuracy of the statements made above and the fact that each Party has had ample opportunity to consult with legal counsel and obtain an explanation of Liquidated Damage provisions at the time that the Agreement was made.

Contractor City
Initial Here:_________ Initial Here: _________
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EXHIBIT G:

EXCERPTS OF CONTRACTOR’S PROPOSAL
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EXHIBIT G1:
(;&(53762)TECHNICAL PROPOSAL
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EXHIBIT G2:

COST BASIS FOR PROPOSAL
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Recology Information Form 1 City of Cupertino Future Services Proposer Name: Recology
Note to Recology:Input data in yellow shaded areas only.

A. Primary Contact Information

1. Name John Zirelli

2. Title General Manager

3. Phone (408)368Ͳ1776

4. Fax

5. EͲmail [email protected]
B. Support Facilities

1. Address of collection vehicle parking, maintenance,
washing, and route staff parking facility(ies)
1675 Rogers Ave, San Jose, CA

2. Address of administrative office
1675 Rogers Ave, San Jose, CA

3. Address of billing office
1675 Rogers Ave, San Jose, CA

4. Address of customer service office
1675 Rogers Ave, San Jose, CA
C. Vehicle Manufacturer and Specifications (Body Capacity, GVWR, Load Capacity)

1. Residential Collection Vehicles
Autocar, 28yd Heil

2. Commercial Collection Vehicles
Autocar, 40yd Heil

3. Drop Box Vehicles
Autocar, NorCal Hoist
D. Container Manufacturer, Sizes Offered, and Specifications

1. Carts Toter (24, 32, 64, 96)

2. Bins Consolidated Fabricators (1, 1.5, 2, 3, 4, 6, 8)

3. Drop Boxes Consolidated Fabricators (8, 16, 20, 26, 30, 40 ) E. Recyclable Materials Processing and Handling

1. Name of processing site
Greenwaste RecoveryͲCharles Street

2. Owner's name
Greenwaste Recovery, Inc.

3. Operator's name
Greenwaste Recovery, Inc.

4. Address of processing site
625 Charles St, San Jose, CA

5. Hauling method (e.g. direct haul, transfer haul, Pod haul) Direct Haul

6. Name and address of transfer location (if applicable) F.Reusable Materials Handling

1. Name of processing site
Hope Services

2. Owner's name
Hope Services

3. Operator's name
Hope Services

4. Address of processing site
460 E. Middlefield Road, Mountain View, CA

5. Hauling method (e.g. direct haul, transfer haul, Pod haul) Transfer

6. Name and address of transfer location (if applicable) 1675 Rogers Ave, San Jose, CA
G.Organics Processing and Handling Facility #1

1. Name of processing site
Recology South Valley Organics

2. Owner's name
Recology, Inc.

3. Operator's name
Recology South Valley Organics

4. Address of processing site
3675 Pacheco Pass Hwy, Gilroy, CA

5. Hauling method (e.g. direct haul, transfer haul, Pod haul) Transfer

6. Name and address of transfer location (if applicable) 1675 Rogers Ave, San Jose, CA
H.Organics Processing and Handling Facility #2

1. Name of processing site Recology Blossom Valley OrganicsͲNorth

2. Owner's name Recology, Inc.

3. Operator's name Recology Blossom Valley OrganicsͲNorth

4. Address of processing site 3909 Gaffery Rd, Vernalis, CA

5. Hauling method (e.g. direct haul, transfer haul, Pod haul) Transfer

6. Name and address of transfer location (if applicable) 1675 Rogers Ave, San Jose, CA I.Other Processing and Handling (Optional)*

1. Name of processing site

2. Owner's name

3. Operator's name

4. Address of processing site

5. Hauling method (e.g. direct haul, transfer haul, Pod haul)

6. Name and address of transfer location (if applicable) * Insert Rows as Needed to Reflect Additional Facility and/or Subcontractor Information.

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Form 2
Operating Statistics City of Cupertino Future Services
Proposer Name: Recology
Note to Recology: Input data in yellow shaded areas only.

RollͲOff
(Form 6D)
Solid Waste
Recyclable
Materials
Organic
Materials Solid Waste
Recyclable
Materials
Organic
Materials Solid Waste
Recyclable
Materials
Organic
Materials
All Material
Types
Bulky Items/
Reusable
Materials
Other
(Specify) TOTAL
1 Account Information
# of weekly accounts (customers) 13,972 13,972 13,972 453 998 371 542 422 120 Labor Information
2 # of regular route personnel 3.8 3.9 3.0 0.2 0.8 0.043 2.3 1.7 0.9 2.1 1.0 19.63 Labor hours/day/person 8.0 8.4 8.1 8.0 8.4 8.1 9.1 8.6 8.0 8.0 8.04 Total labor hours/year 7,925 8,474 6,255 333 1,660 91 5,347 3,779 1,895 4,451 2,080 0 42,289 Route Information
# of routes per
5 Weekday 3.81 3.88 2.97 0.16 0.76 0.043 2.26 1.69 0.91 2.14 1.00 19.6 6 Saturday 1.4 0.3 0.3 0.71 2.77 Sunday 0.0
# of persons per route per
8 Weekday 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
9 Saturday 1.0 1.0 1.0 1.0
10 Sunday
# of route hours/day/route per
11 Weekday 8.0 8.4 8.1 8.0 8.4 8.1 9.1 8.6 8.0 8.0 8.0
12 Saturday 8.0 8.0 8.0 8.013 Sunday
# of route hours per year per:
14 Weekday 7,925 8,474 6,255 333 1,660 91 5,347 3,779 1,895 4,451 2,080 42,289 15 Saturday 582 125 125 295 1,12716 Sunday 017 Total Route Hours per Year (all routes) 7,925 8,474 6,255 333 1,660 91 5,930 3,904 2,020 4,747 2,080 0 43,41618 # of FTE routes 3.81 4.07 3.01 0.16 0.80 0.04 2.85 1.88 0.97 2.28 1.00 0.00 20.8719 Total # of cart setouts per day for all routes 2,431 2,347 2,06820 # of cart setouts/day/FTE route 638 576 68821 # of cart setouts per week for all routes 12,156 11,736 10,33922 # of household driveͲbys per wk for all routes 13,972 13,972 13,97223 Set out rate (%) 87% 84% 74%24 # of lifts or pulls per week for all routes 471 1,554 375 915 922 225 58 9525 # of lifts or pulls per year for all routes 24,492 80,808 19,500 47,580 47,944 11,700 3,002 4,940 026 # of lifts or pulls per route hour 73.6 48.68 215.33 8.02 12.28 5.79 0.63 2.38 0.00 Vehicle Information
27 # of regular collection vehicles (from Form 4) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.029 # of spare collection vehicles (from Form 4) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.030 Total # of collection vehicles 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 Tonnage Information (annual)
31 Solid Waste Collected 7,520 360 6,150 3,250 17,280.032 Recyclable Materials Collected 4,890 380 2,200 480 7,950.033 Organic Materials Collected Facillity #1 8,010 116 1,000 9,126.034 Organic Materials Collected Facillity #2 0 2,600 2,500 5,100.035 C&D 2,500 2,500.036 HHW 0.037 Bulky Items/Reusable Materials Collected 0.038 Other Materials Collected (Specify) 0.039 Total Collected 7,520 4,890 8,010 360 380 116 6,150 2,200 2,600 9,730 0 0 41,95640 Processing residue disposed 0.041 Net Diverted (Line 32 + 33 + 34 + 35 + 36 + 37 + 38Ͳ40) 0 4,890 8,010 0 380 116 0 2,200 2,600 6,480 0 0 24,676

58.8%
REPORT FOR 12ͲMONTH PERIOD Residential Cart Service (Form 6A) From February 1, 2021 to January 31, 2022
Commercial Cart Service (Form 6B) Commercial Bin Service (Form 6C) Other (Form 6E)

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Form 2
Operating Statistics City of Cupertino Future Services
Proposer Name: Recology
Notes for Form 2:

Pulls = pull and return etc.Full Time Equivalent (FTE) = 40 hours per week, 2,080 hours per year Line 27 ͲNo input needed by Recology, data linked to Form 4ͲCapital. Data should reflect the assumptions used for the basis of the costs proposed in Forms 6AͲ6E.

Line 28 ͲNo input needed by Recology, data linked to Form 4ͲCapital. Data should reflect the assumptions used for the basis of the costs proposed in Forms 6AͲ6E.

Line 29 ͲNo input needed by Recology, data linked to Form 4ͲCapital. Data should reflect the assumptions used for the basis of the costs proposed in Forms 6AͲ6E.

Line 41ͲShould equal Line 32 + Line 33 + Line 34 + Line 35 + Line 36 + Line 37 + Line 38ͲLine 40 Line 30ͲShould equal Line 27 + Line 28 + Line 29
Lines 31 Ͳ38ͲData to be input by Recology. Data should reflect the assumptions used for the basis of the costs proposed in Forms 6AͲ6E.

Line 39ͲShould equal the sum of Line 31 + Line 32 + Line 33 + Line 34 + Line35 + Line 36 + Line 37 + Line 38 Line 40Ͳ Data to be input by Recology. Data should reflect the assumptions used for the basis of the costs proposed in Forms 6AͲ6E.

Line 23ͲShould equal Line 21 / Line 22
Line 24ͲData to be input by Recology. Data should reflect the assumptions used for the basis of the costs proposed in Forms 6BͲ6E.

Line 25ͲData to be input by Recology and should equal Line 24 * 52 weeks. Data should reflect the assumptions used for the basis of the costs proposed in Forms 6BͲ6E.

Line 26ͲShould equal Line 25/ Line 17
Line 19 ͲData to be input by Recology. Data should reflect the assumptions used for the basis of the costs proposed in Form 6A Line 20ͲShould equal Line 19 / Line 18Line 21ͲShould equal Line 19 * 5 daysLine 22ͲData to be input by Recology. Data should reflect the assumptions used for the basis of the costs proposed in Form 6A.

Line 15ͲShould equal Line 6 * Line 12 * 52 weeks
Line 16ͲShould equal Line 7 * Line 13 * 52 weeks
Line 17ͲShould equal Line 14 + Line 15 + Line 16
Line 18ͲShould equal Line 17 / 2,080 hours
Line 14ͲShould equal Line 5 * Line 11* 260 daysLine 2ͲData to be input by Recology. Data should reflect the assumptions used for the basis of the costs proposed in Forms 6AͲ6E.

Line 3ͲIdentify number of hours per day each regular route employee will work each day (including breaks, preͲand postͲroute checks, etc., excludes casual/pool personnel).

Line 4ͲShould equal Line 2 * Line 3 * 260 days. Total should tie to total payroll hours.

Lines 11, 12, and 13ͲIdentify number of hours per day each route will take to complete (including collection time and hauling time to transfer station, landfill, or processing site).

Line 1 ͲShould equal the number of customer serviced on a weekly basisLines 5, 6, and 7ͲInformation is to be reported for collection routes only and does not include any support (e.g., container delivery routes, cleanup routes, missed pickup routes etc.) Line 8, 9, and 10 ͲData to be input by Recology. Data should reflect the assumptions used for the basis of the costs proposed in Forms 6AͲ6E.

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Form 3
Proposed Labor Requirements City of Cupertino Future Services Proposer Name: Recology
Note to Recology:Input data in yellow shaded areas only.

Route Personnel Headcount (include fraction of employee) Residential Cart Solid Waste (6A) 3.8 1.0 4.8
Residential Cart Recyclable Materials (6A) 3.9 1.0 4.9
Residential Cart Organic Matrials (6A) 3.0 0.7 3.7
Commercial Cart Solid Waste (6B) 0.2 0.0 0.2
Commercial Cart Recyclable Materials (6B) 0.8 0.2 1.0
Commercial Cart Organic Materials (6B) 0.0 0.0 0.1
Commercial Bin Solid Waste (6C) 2.3 0.6 2.8
Commercial Bin Recyclable Materials (6C) 1.7 0.4 2.1
Commercial Bin Organic Materials (6C) 0.9 0.2 1.1
RollͲOff (6D) 2.1 0.5 2.7
HHW (6E) 0.0 0.0 0.0
Bulky (6E) 1.0 0.3 1.3
Stinger 0.0
Subtotal Route Personnel 19.6 4.9 24.5
Other Personnel Headcount (include fraction of employee) # of Employees Hourly Rate Executive Management (CEO, CFO, COO, etc.)
General Manager 0.6
Operations Manager 0.6
Municipal Relations Manager
Route Supervisor 1.1
Dispatcher 0.6
Container Distribution 0.6
Container Maintenance/Welder 1.1
Maintenance Supervisor 0.6
Maintenance Personnel 2.8
Controller
Safety Specialist
Staff Accountant
Office Manager 0.6
Human Resources
Accounting Clerk 0.6
Billings Clerk
Accounts Receivable Clerk
Collection Clerk
Financial & Reporting Analyst 0.75
Benefits Coordinator
Customer Service Supervisor
Customer Service Representatives 1.1
Sales Coordinator
Recycling Manager
Waste Zero Specialist 2.0
Contract Manager
Other (specify): __________________
Other (specify): __________________
Subtotal Other Personnel 12.8

37.3 # of Regular Personnel # of Casual/Pool Total Hourly Rate Benefits Cost/Hour Notes Benefits Cost/Hour
Total All Personnel

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Form 4
Capital Requirements City of Cupertino Future Services
Proposer Name: Recology
Note to Recology:Input data in yellow shaded areas only.

Actual Spare Total Actual Spare Total Actual Spare Total Vehicles
Collection Vehicles
Residential Cart Solid Waste 0 0 0 0 0 N/A
Residential Cart Recyclable Materials 0 0 0 0 0 N/A
Residential Cart Organic Materials 0 0 0 0 0 N/A
Commercial Cart Solid Waste 0 0 0 0 0 N/A
Commercial Cart Recyclable Materials 0 0 0 0 0 N/A
Commercial Cart Organic Materials 0 0 0 0 0 N/A
Commercial Bin Solid Waste 0 0 0 0 0 N/A
Commercial Bin Recyclable Materials 0 0 0 0 0 N/A
Commercial Bin Organic Materials 0 0 0 0 0 N/A
RollͲOff 0 0 0 0 0 N/A
HHW 0 0 0 0 0 N/A
Bulky Items/Reusable Materials 0 0 0 0 0 N/A
Subtotal 000000000 $0
Other Vehicles
Pickup Trucks 0 0 0 0 0 N/A
Container Distribution 0 0 0 0 0 N/A
Mobile Service Truck 0 0000 N/A
Stinger 0 0000 N/A
Other (specify): __________________ 0 0 0 0 0 N/A
Other (specify): __________________ 0 0 0 0 0 N/A
Subtotal 000000000 $0
Total Vehicle Cost $0
Containers
Carts
Solid Waste 35Ͳgallon 0 0 0 0 0 N/A
Solid Waste 64Ͳgallon 0 0 0 0 0 N/A
Solid Waste 96Ͳgallon 0 0 0 0 0 N/A
Recyclable Material 32Ͳgallon 0 0 0 0 0 N/A
Recyclable Material 64Ͳgallon 0 0000 N/A
Recyclable Material 96Ͳgallon 0 0 0 0 0 N/A
Organic Materials 32Ͳgallon 0 0 0 0 0 N/A
Organic Materials 64Ͳgallon 0 0 0 0 0 N/A
Organic Materials 96Ͳgallon 0 0000 N/A
Subtotal 000000000 $0
Bins
1 cubic yard 0 0 0 0 0 N/A

1.5 cubic yards 0 0000 N/A
2 cubic yards 0 0000 N/A
3 cubic yards 0 0000 N/A
4 cubic yards 0 0000 N/A
5 cubic yards 0 0000 N/A
6 cubic yards 0 0 0 0 0 N/A
Subtotal 000000000 $0
Drop Boxes
7 cubic yards 0 0 0 0 0 N/A
20 cubic yards 0 0000 N/A
30 cubic yards 0 0000 N/A
40 cubic yards 0 0000 N/A
Subtotal 000000000 $0
Foodwaste Pails 0 0 0 0 0 N/A
Other (specify): __________________ 0 0 0 0 0 N/A
Other (specify): __________________ 0 0 0 0 0 N/A
Subtotal 000000000 $0
Total Container Cost $0
Other Description
Offices
Processing Site(s)
Transfer Station
Corporation Yard/Maintenance
Container Storage Yard
Shop Equipment
Fueling Equipment
Computer and Office Equipment
Other (specify): __________________
Other (specify): __________________
Total Other Cost $0
Total Capital Cost $0
Average Price
Quantity
Total Capital Cost
Over Contract Term
(in 2022 dollars)
New Used Total

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Form 5
Summary of Proposed Costs City of Cupertino Future Services Proposer Name: Recology
Note to Recology: No data input required on this Form 5; costs are pulled automatically from Forms 6A through 6D.

RATE PERIOD 1
RollͲOff
(Form 6D)
From February 1, 2021 to January 31, 2022 Solid Waste
Recyclable
Materials
Organic
Materials Solid Waste
Recyclable
Materials
Organic
Materials Solid Waste
Recyclable
Materials
Organic
Materials
All Material
Types
Bulky Items/
Reusable
Materials
Other
(Specify) TOTAL
Cost of Operations
LaborͲRelated Costs $742,162 $784,524 $584,033 $31,167 $153,670 $8,456 $527,709 $356,854 $186,341 $437,884 $194,793 $0 $4,007,593 VehicleͲRelated Costs $110,795 $112,831 $86,368 $4,653 $22,101 $10,962 $65,721 $49,145 $26,492 $62,231 $29,080 $0 $580,379 Fuel Costs $64,228 $69,433 $50,838 $2,697 $13,600 $736 $44,546 $31,119 $15,357 $36,076 $16,858 $0 $345,489 Other Costs $61,820 $62,956 $48,190 $2,596 $12,332 $1,323 $36,670 $27,421 $14,782 $34,723 $16,226 $0 $319,039 Direct Depreciation $192,461 $177,682 $136,009 $7,327 $34,804 $1,969 $103,495 $77,392 $41,719 $98,000 $34,994 $0 $905,853 Total Allocated CostsͲLabor, Vehicle, Fuel & Other $418,319 $418,319 $418,319 $31,673 $149,698 $173,304 $433,558 $323,301 $173,304 $358,559 $89,640 $0 $2,987,993Total Allocated CostsͲDepreciation & StartͲUp $4,944 $4,944 $4,944 $374 $1,769 $2,048 $5,124 $3,821 $2,048 $4,237 $1,059 $0 $35,311 Total Cost of Operations $1,594,729 $1,630,689 $1,328,701 $80,487 $387,974 $198,798 $1,216,823 $869,054 $460,042 $1,031,711 $382,650 $0 $9,181,656Profit (Includes Franchise Fees) $604,897 $618,537 $503,990 $30,530 $147,162 $75,406 $461,553 $329,641 $174,499 $391,338 $145,143 $0 $3,482,697PassͲThrough Costs Disposal Costs $340,882 $0 $0 $16,319 $0 $0 $278,780 $0 $0 $147,323 $0 $0 $783,302 Recyclable Processing Costs $0 $168,705 $0 $0 $13,110 $0 $0 $75,900 $0 $16,560 $0 $0 $274,275Organics Processing CostsͲFacility #1 $0 $0 $712,730 $0 $0 $10,322 $0 $0 $0 $88,980 $0 $0 $812,031 Organics Processing CostsͲFacility #2 $0 $0 $0 $0 $0 $0 $0 $0 $314,704 $302,600 $0 $0 $617,304 C&D Processing Costs $0 $0 $0 $0 $0 $0 $0 $0 $0 $113,325 $0 $0 $113,325 Reusable Materials Processing Costs $0 $0 $0 $0 $0 $0$0$0$0$0$0$0 $0 Other Processing Costs $0 $0 $0 $0 $0 $0$0$0$0$0$0$0 $0 Interest Expense $64,054 $65,231 $49,932 $2,690 $12,777 $723 $37,995 $28,412 $15,316 $35,978 $13,547 $0 $326,655Direct Lease Costs $0 $0 $0 $0 $0 $0$0$0$0$0$0$0 $0 Total Allocated CostsͲLease $25,200 $25,200 $25,200 $1,908 $9,018 $10,440 $26,118 $19,476 $10,440 $21,600 $5,400 $0 $180,000 Total PassͲThrough Costs $430,136 $259,136 $787,862 $20,917 $34,905 $21,485 $342,893 $123,788 $340,460 $726,365 $18,947 $0 $3,106,893 $2,629,762 $2,508,361 $2,620,552 $131,934 $570,041 $295,689 $2,021,269 $1,322,483 $975,001 $2,149,414 $546,740 $0 $15,771,247 Cost Reimbursements
Solid Waste Operations Fund Fee (net of disposal) ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ $1,394,128  ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ $0 Total Cost Reimbursements ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ $1,394,128Total Proposed Costs ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ $17,165,375Profit (Includes Franchise Fees) ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ $3,482,697 Less: Franchise Fee ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ $1,740,683 Net Profit Margin ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ ͲͲͲ $1,742,014*Amounts to tie to Forms 6A through 6E.

Residential Cart Service (Form 6A) Commercial Cart Service (Form 6B) Total Costs before Cost Reimbursements*
Commercial Bin Service (Form 6C) Other (Form 6E)

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Form 6
Collection Cost Proposal City of Cupertino Future Services Proposer Name: Recology
Note to Recology:No data input required on Form 6; costs are pulled from Forms 6AͲ6E.

Rate Period One
SUMMARY (Total Costs from Forms 6A through 6E) From February 1, 2021 to January 31, 2022
LaborͲRelated Costs (include regular & pool personnel)
Regular Wages $1,641,333
Overtime Wages $436,351
Holiday Wages $169,366
Vacation Wages $214,267
Sick Leave Wages $87,809
Workers Compensation Insurance Premiums $216,294
Workers Compensation Claims $0
Health & Welfare $804,688
Pension/ Retirement Benefits $240,121
Payroll Taxes $197,363
Other (Please List) $0
Total Labor RelatedͲCosts $4,007,593
VehicleͲRelated Costs (do not include depreciation)
Tires & Tubes $72,824
Parts & Supplies (fluid, oil, etc,) $240,229
Outside Repairs $145,749
Taxes & Licenses $78,203
OnͲBoard Computer Operational Costs $43,374
Other (Please List) $0
Total VehicleͲRelated Costs $580,379
Fuel Costs $345,489
Other Costs
Liability & Property Damage Insurance $245,418
Equipment Insurance $0
Training & Safety Programs $22,236
Uniforms $19,040
Towing $32,346
Total Other Costs $319,039
Direct Depreciation
Container Depreciation $163,863
Route Vehicle Depreciation $724,005
Other Depreciation $17,985
Total Direct Depreciation $905,853
Allocated CostsͲLabor, Vehicle, Fuel & Other Costs
From General and Administrative (6F) $2,008,046
From Vehicle Maintenance (6F) $973,379
From Container Maintenance (6F) $6,569
Total Allocated CostsͲLabor, Vehicle, Fuel & Other Costs $2,987,993 Allocated CostsͲDepreciation and StartͲUp Costs
From General and Administrative (6F) $35,311
From Vehicle Maintenance (6F) $0
From Container Maintenance (6F) $0
Total Allocated CostsͲDepreciation and StartͲUp Costs $35,311 Total Cost of Operations $9,181,656
Gross Operating Ratio (% Operating Ratio; i.e. 90%): 72.5 % $3,482,697

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Form 6
Collection Cost Proposal City of Cupertino Future Services Proposer Name: Recology
Note to Recology:No data input required on Form 6; costs are pulled from Forms 6AͲ6E.

Rate Period One
SUMMARY (Total Costs from Forms 6A through 6E) From February 1, 2021 to January 31, 2022
PassͲThrough Costs
Disposal Cost $45.33 /ton $783,302
Recyclables Processing Costs $34.50 /ton $274,275
Organics Processing CostsͲFacility #1 $88.98 /ton $812,031 Organics Processing CostsͲFacility #2 $121.04 /ton $617,304 C&D Processing Costs $45.33 /ton $113,325
Reusable Materials Handling Costs $Ͳ /ton $0
Other Processing Costs: __________ (specify) $Ͳ $0 Interest Expense $326,655
Direct Lease Costs
Route Vehicles $0
Other (Please List) $0
Total Direct Lease Costs $0
Allocated Lease Costs
From General and Administrative (6F) $180,000
From Vehicle Maintenance (6F) $0
From Container Maintenance (6F) $0
Total Allocated Lease Costs $180,000
Total PassͲThrough Costs $3,106,893
Total Cost Before Cost Reimbursements $15,771,247
Cost Reimbursements to City
Solid Waste Operations Fee $1,394,128.00 $Ͳ
Total Reimbursements to City $1,394,128.00 Total Proposed Cost $17,165,375
Gross Operating Margin $3,482,697
Less: Franchise Fee $1,740,683
Net Profit Margin $1,742,014

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Form 6A Detailed Collection Cost Proposal Information City of Cupertino Future Services Proposer Name: Recology
Note to Recology:Input data in yellow shaded areas only.

RESIDENTIAL CART COSTS Solid Waste
Recyclable
Materials Organic Materials Subtotal
LaborͲRelated Costs (include regular & pool personnel)
Regular Wages $318,665 $324,520 $248,408 $891,592
Overtime Wages $51,386 $78,993 $45,159 $175,538
Holiday Wages $32,882 $33,487 $25,633 $92,002
Vacation Wages $41,600 $42,364 $32,428 $116,392
Sick Leave Wages $17,048 $17,361 $13,290 $47,699
Workers Compensation Insurance Premiums $41,993 $42,765 $32,735 $117,494 Workers Compensation Claims $0
Health & Welfare $156,230 $159,101 $121,786 $437,117
Pension/ Retirement Benefits $46,619 $47,476 $36,341 $130,437 Payroll Taxes $35,737 $38,458 $28,253 $102,449
Other (Please List) $0
Total Labor RelatedͲCosts $742,162 $784,524 $584,033 $2,110,719 VehicleͲRelated Costs (do not include depreciation)
Tires & Tubes $13,865 $14,120 $10,808 $38,794
Parts & Supplies (fluid, oil, etc,) $45,739 $46,579 $35,654 $127,972 Outside Repairs $27,750 $28,260 $21,632 $77,641
Taxes & Licenses $15,183 $15,462 $11,836 $42,481
OnͲBoard Computer Operational Costs $8,258 $8,410 $6,438 $23,106 Other (Please List) $0
Total VehicleͲRelated Costs $110,795 $112,831 $86,368 $309,994 Fuel Costs $64,228 $69,433 $50,838 $184,499
Other Costs
Liability & Property Damage Insurance $47,648 $48,523 $37,143 $133,314 Equipment Insurance $0
Training & Safety Programs $4,317 $4,396 $3,365 $12,079 Uniforms $3,697 $3,765 $2,882 $10,343
Towing $6,158 $6,272 $4,801 $17,231
Total Other Costs $61,820 $62,956 $48,190 $172,966
Direct Depreciation
Container Depreciation $31,814 $32,398 $24,800 $89,012
Route Vehicle Depreciation $142,662 $145,284 $111,209 $399,155 Other DepreciationͲ24 Gallon Solid Waste Carts $17,985 $17,985 Total Direct Depreciation $192,461 $177,682 $136,009 $506,152 Allocated CostsͲLabor, Vehicle, Fuel & Other Costs
From General and Administrative (6F) $281,126 $281,126 $281,126 $843,379 From Vehicle Maintenance (6F) $136,273 $136,273 $136,273 $408,819 From Container Maintenance (6F) $920 $920 $920 $2,759
Total Allocated CostsͲLabor, Vehicle, Fuel & Other Costs $418,319 $418,319 $418,319 $1,254,957 Allocated CostsͲDepreciation and StartͲUp Costs
From General and Administrative (6F) $4,944 $4,944 $4,944 $14,831 From Vehicle Maintenance (6F) $0 $0 $0 $0
From Container Maintenance (6F) $0 $0 $0 $0
Total Allocated CostsͲDepreciation and StartͲUp Costs $4,944 $4,944 $4,944 $14,831 Total Cost of Operations $1,594,729 $1,630,689 $1,328,701 $4,554,118 Profit (Enter % Operating Ratio; i.e. 95%): 72.5 % $604,897 $618,537 $503,990 $1,727,424 Rate Period One
From February 1, 2021 to January 31, 2022

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Form 6A Detailed Collection Cost Proposal Information City of Cupertino Future Services Proposer Name: Recology
Note to Recology:Input data in yellow shaded areas only.

RESIDENTIAL CART COSTS Solid Waste
Recyclable
Materials Organic Materials Subtotal
Rate Period One
From February 1, 2021 to January 31, 2022
PassͲThrough Costs per ton
Disposal Cost $45.33 $340,882 $0 $0 $340,882
Recyclables Processing Costs $34.50 $0 $168,705 $0 $168,705 Bulky Items/Reusable Materials Handling Costs $Ͳ $0 $0 $0 $0 Other Processing Costs: __________ (specify) $Ͳ $0 $0 $0 $0 Organics Processing CostsͲFacility #1 $88.98 $0 $0 $712,730 $712,730 Organics Processing CostsͲFacility #2 $121.04 $0 $0 $0 $0 C&D Processing Costs $45.33 $0 $0 $0 $0
Interest Expense $64,054 $65,231 $49,932 $179,217
Direct Lease Costs
Route Vehicles $0
Other (Please List) $0
Total Direct Lease Costs $0 $0 $0 $0
Allocated Lease Costs
From General and Administrative (6E) $25,200 $25,200 $25,200 $75,600 From Vehicle Maintenance (6E) $0 $0 $0 $0
From Container Maintenance (6E) $0 $0 $0 $0
Total Allocated Lease Costs $25,200 $25,200 $25,200 $75,600 Total PassͲThrough Costs $430,136 $259,136 $787,862 $1,477,133 Total Cost $2,629,762 $2,508,361 $2,620,552 $7,758,675

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Form 6B Detailed Collection Cost Proposal Information City of Cupertino Future Services Proposer Name: Recology
Note to Recology:Input data in yellow shaded areas only.

COMMERCIAL CART COSTS Solid Waste
Recyclable
Materials
Organic
Materials Subtotal
LaborͲRelated Costs (include regular & pool personnel)
Regular Wages $13,382 $63,566 $3,596 $80,544
Overtime Wages $2,158 $15,473 $654 $18,285
Holiday Wages $1,381 $6,559 $371 $8,311
Vacation Wages $1,747 $8,298 $470 $10,515
Sick Leave Wages $716 $3,401 $192 $4,309
Workers Compensation Insurance Premiums $1,764 $8,377 $474 $10,614 Workers Compensation Claims $0
Health & Welfare $6,561 $31,164 $1,763 $39,488
Pension/ Retirement Benefits $1,958 $9,299 $526 $11,783 Payroll Taxes $1,501 $7,533 $409 $9,443
Other (Please List) $0
Total Labor RelatedͲCosts $31,167 $153,670 $8,456 $193,292 VehicleͲRelated Costs (do not include depreciation)
Tires & Tubes $582 $2,766 $1,565 $4,913
Parts & Supplies (fluid, oil, etc,) $1,921 $9,124 $5,162 $16,207 Outside Repairs $1,165 $5,535 $3,132 $9,833
Taxes & Licenses $638 $3,029 $171 $3,838
OnͲBoard Computer Operational Costs $347 $1,647 $932 $2,926 Other (Please List) $0
Total VehicleͲRelated Costs $4,653 $22,101 $10,962 $37,716 Fuel Costs $2,697 $13,600 $736 $17,034
Other Costs
Liability & Property Damage Insurance $2,001 $9,505 $538 $12,043 Equipment Insurance $0
Training & Safety Programs $181 $861 $49 $1,091
Uniforms $155 $737 $42 $934
Towing $259 $1,228 $695 $2,182
Total Other Costs $2,596 $12,332 $1,323 $16,251
Direct Depreciation
Container Depreciation $1,336 $6,346 $359 $8,041
Route Vehicle Depreciation $5,991 $28,458 $1,610 $36,059 Other Depreciation $0
Total Direct Depreciation $7,327 $34,804 $1,969 $44,100 Allocated CostsͲLabor, Vehicle, Fuel & Other Costs
From General and Administrative (6F) $21,285 $100,603 $116,467 $238,355 From Vehicle Maintenance (6F) $10,318 $48,766 $56,456 $115,540 From Container Maintenance (6F) $70 $329 $381 $780
Total Allocated CostsͲLabor, Vehicle, Fuel & Other Costs $31,673 $149,698 $173,304 $354,675 Allocated CostsͲDepreciation and StartͲUp Costs
From General and Administrative (6F) $374 $1,769 $2,048 $4,191 From Vehicle Maintenance (6F) $0 $0 $0 $0
From Container Maintenance (6F) $0 $0 $0 $0
Total Allocated CostsͲDepreciation and StartͲUp Costs $374 $1,769 $2,048 $4,191 Total Cost of Operations $80,487 $387,974 $198,798 $667,259 Profit (Enter % Operating Ratio; i.e. 95%): 72.5 % $30,530 $147,162 $75,406 $253,098 Rate Period One
From February 1, 2021 to January 31, 2022

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Form 6B Detailed Collection Cost Proposal Information City of Cupertino Future Services Proposer Name: Recology
Note to Recology:Input data in yellow shaded areas only.

COMMERCIAL CART COSTS Solid Waste
Recyclable
Materials
Organic
Materials Subtotal
Rate Period One
From February 1, 2021 to January 31, 2022
PassͲThrough Costs per ton
Disposal Cost $45.33 $16,319 $0 $0 $16,319
Recyclables Processing Costs $34.50 $0 $13,110 $0 $13,110 Bulky Items/Reusable Materials Handling Costs $Ͳ $0 $0 $0 $0 Other Processing Costs: __________ (specify) $Ͳ $0 $0 $0 $0 Organics Processing CostsͲFacility #1 $88.98 $0 $0 $10,322 $10,322 Organics Processing CostsͲFacility #2 $121.04 $0 $0 $0 $0 C&D Processing Costs $45.33 $0 $0 $0 $0
Interest Expense $2,690 $12,777 $723 $16,190
Direct Lease Costs
Route Vehicles $0
Other (Please List) $0
Total Direct Lease Costs $0 $0 $0 $0
Allocated Lease Costs
From General and Administrative (6F) $1,908 $9,018 $10,440 $21,366 From Vehicle Maintenance (6F) $0 $0 $0 $0
From Container Maintenance (6F) $0 $0 $0 $0
Total Allocated Lease Costs $1,908 $9,018 $10,440 $21,366 Total PassͲThrough Costs $20,917 $34,905 $21,485 $77,307 Total Cost $131,934 $570,041 $295,689 $997,663

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Form 6C Detailed Collection Cost Proposal Information City of Cupertino Future Services Proposer Name: Recology
Note to Recology:Input data in yellow shaded areas only.

COMMERCIAL BIN COSTS Solid Waste
Recyclable
Materials
Organic
Materials Subtotal
LaborͲRelated Costs (include regular & pool personnel)
Regular Wages $189,024 $141,350 $76,195 $406,569
Overtime Wages $111,671 $48,459 $20,533 $180,664
Holiday Wages $19,505 $14,586 $7,862 $41,953
Vacation Wages $24,676 $18,452 $9,947 $53,075
Sick Leave Wages $10,113 $7,562 $4,076 $21,751
Workers Compensation Insurance Premiums $24,910 $18,627 $10,041 $53,578 Workers Compensation Claims $0
Health & Welfare $92,672 $69,299 $37,356 $199,327
Pension/ Retirement Benefits $27,654 $20,679 $11,147 $59,480 Payroll Taxes $27,485 $17,839 $9,184 $54,507
Other (Please List) $0
Total Labor RelatedͲCosts $527,709 $356,854 $186,341 $1,070,904 VehicleͲRelated Costs (do not include depreciation)
Tires & Tubes $8,225 $6,150 $3,315 $17,690
Parts & Supplies (fluid, oil, etc,) $27,131 $20,288 $10,936 $58,356 Outside Repairs $16,461 $12,309 $6,635 $35,405
Taxes & Licenses $9,006 $6,735 $3,630 $19,371
OnͲBoard Computer Operational Costs $4,899 $3,663 $1,975 $10,536 Other (Please List) $0
Total VehicleͲRelated Costs $65,721 $49,145 $26,492 $141,358 Fuel Costs $44,546 $31,119 $15,357 $91,023
Other Costs
Liability & Property Damage Insurance $28,264 $21,135 $11,393 $60,792 Equipment Insurance $0
Training & Safety Programs $2,561 $1,915 $1,032 $5,508
Uniforms $2,193 $1,640 $884 $4,716
Towing $3,653 $2,732 $1,473 $7,857
Total Other Costs $36,670 $27,421 $14,782 $78,873
Direct Depreciation
Container Depreciation $18,871 $14,112 $7,607 $40,590
Route Vehicle Depreciation $84,624 $63,281 $34,112 $182,016 Other Depreciation $0
Total Direct Depreciation $103,495 $77,392 $41,719 $222,606 Allocated CostsͲLabor, Vehicle, Fuel & Other Costs
From General and Administrative (6F) $291,367 $217,271 $116,467 $625,105 From Vehicle Maintenance (6F) $141,237 $105,320 $56,456 $303,013 From Container Maintenance (6F) $953 $711 $381 $2,045
Total Allocated CostsͲLabor, Vehicle, Fuel & Other Costs $433,558 $323,301 $173,304 $930,162 Allocated CostsͲDepreciation and StartͲUp Costs
From General and Administrative (6F) $5,124 $3,821 $2,048 $10,992 From Vehicle Maintenance (6F) $0 $0 $0 $0
From Container Maintenance (6F) $0 $0 $0 $0
Total Allocated CostsͲDepreciation and StartͲUp Costs $5,124 $3,821 $2,048 $10,992 Total Cost of Operations $1,216,823 $869,054 $460,042 $2,545,919 Profit (Enter % Operating Ratio; i.e. 95%): 72.5 % $461,553 $329,641 $174,499 $965,693 Rate Period One
From February 1, 2021 to January 31, 2022

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Form 6C Detailed Collection Cost Proposal Information City of Cupertino Future Services Proposer Name: Recology
Note to Recology:Input data in yellow shaded areas only.

COMMERCIAL BIN COSTS Solid Waste
Recyclable
Materials
Organic
Materials Subtotal
Rate Period One
From February 1, 2021 to January 31, 2022
PassͲThrough Costs per ton
Disposal Cost $45.33 $278,780 $0 $0 $278,780
Recyclables Processing Costs $34.50 $0 $75,900 $0 $75,900 Bulky Items/Reusable Materials Handling Costs $Ͳ $0 $0 $0 $0 Other Processing Costs: __________ (specify) $Ͳ $0 $0 $0 $0 Organics Processing CostsͲFacility #1 $88.98 $0 $0 $0 $0 Organics Processing CostsͲFacility #2 $121.04 $0 $0 $314,704 $314,704 C&D Processing Costs $45.33 $0 $0 $0 $0
Interest Expense $37,995 $28,412 $15,316 $81,723
Direct Lease Costs
Route Vehicles $0
Other (Please List) $0
Total Direct Lease Costs $0$0$0$0
Allocated Lease Costs
From General and Administrative (6F) $26,118 $19,476 $10,440 $56,034 From Vehicle Maintenance (6F) $0 $0 $0 $0
From Container Maintenance (6F) $0 $0 $0 $0
Total Allocated Lease Costs $26,118 $19,476 $10,440 $56,034 Total PassͲThrough Costs $342,893 $123,788 $25,756 $492,437 Total Cost $2,021,269 $1,322,483 $660,297 $4,004,049

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Form 6D Detailed Collection Cost Proposal Information City of Cupertino Future Services Proposer Name: Recology
ROLLͲOFF COSTS All Material Types Subtotal
LaborͲRelated Costs (include regular & pool personnel)
Regular Wages $178,988 $178,988
Overtime Wages $48,378 $48,378
Holiday Wages $18,469 $18,469
Vacation Wages $23,366 $23,366
Sick Leave Wages $9,576 $9,576
Workers Compensation Insurance Premiums $23,587 $23,587 Workers Compensation Claims $0
Health & Welfare $87,751 $87,751
Pension/ Retirement Benefits $26,185 $26,185
Payroll Taxes $21,584 $21,584
Other (Please List) $0
Total Labor RelatedͲCosts $437,884 $437,884
VehicleͲRelated Costs (do not include depreciation)
Tires & Tubes $7,788 $7,788
Parts & Supplies (fluid, oil, etc,) $25,690 $25,690
Outside Repairs $15,587 $15,587
Taxes & Licenses $8,528 $8,528
OnͲBoard Computer Operational Costs $4,639 $4,639
Other (Please List) $0
Total VehicleͲRelated Costs $62,231 $62,231
Fuel Costs $36,076 $36,076
Other Costs
Liability & Property Damage Insurance $26,763 $26,763
Equipment Insurance $0
Training & Safety Programs $2,425 $2,425
Uniforms $2,076 $2,076
Towing $3,459 $3,459
Total Other Costs $34,723 $34,723
Direct Depreciation
Container Depreciation $17,869 $17,869
Route Vehicle Depreciation $80,131 $80,131
Other Depreciation $0
Total Direct Depreciation $98,000 $98,000
Allocated CostsͲLabor, Vehicle, Fuel & Other Costs
From General and Administrative (6F) $240,965 $240,965
From Vehicle Maintenance (6F) $116,805 $116,805
From Container Maintenance (6F) $788 $788
Total Allocated CostsͲLabor, Vehicle, Fuel & Other Costs $358,559 $358,559 Allocated CostsͲDepreciation and StartͲUp Costs
From General and Administrative (6F) $4,237 $4,237
From Vehicle Maintenance (6F) $0 $0
From Container Maintenance (6F) $0 $0
Total Allocated CostsͲDepreciation and StartͲUp Costs $4,237 $4,237 Total Cost of Operations $1,031,711 $1,031,711
Profit (Enter % Operating Ratio; i.e. 95%): 72.5 % $391,338 $391,338 Rate Period One
From February 1, 2021 to January 31,
2022
Note to Recology:Input data in
yellow shaded areas only.

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Form 6D Detailed Collection Cost Proposal Information City of Cupertino Future Services Proposer Name: Recology
ROLLͲOFF COSTS All Material Types Subtotal
Rate Period One
From February 1, 2021 to January 31,
2022
Note to Recology:Input data in
yellow shaded areas only.

PassͲThrough Costs per ton
Disposal Cost $45.33 $147,323 $147,323
Recyclables Processing Costs $34.50 $16,560 $16,560 Bulky Items/Reusable Materials Handling Costs $Ͳ $0 $0 Other Processing Costs: __________ (specify) $Ͳ $0 $0 Organics Processing CostsͲFacility #1 $88.98 $88,980 $88,980 Organics Processing CostsͲFacility #2 $121.04 $302,600 $302,600 C&D Processing Costs $45.33 $113,325 $113,325
Interest Expense $35,978 $35,978
Direct Lease Costs
Route Vehicles $0
Other (Please List) $0
Total Direct Lease Costs $0 $0
Allocated Lease Costs
From General and Administrative (6F) $21,600 $21,600
From Vehicle Maintenance (6F) $0 $0
From Container Maintenance (6F) $0 $0
Total Allocated Lease Costs $21,600 $21,600
Total PassͲThrough Costs $423,765 $423,765
Total Cost $1,846,814 $1,846,814

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Form 6E
Detailed Collection Cost Proposal Information City of Cupertino Future Services Proposer Name: Recology
Note to Recology:Input data in yellow shaded areas only.

OTHER COSTS
Bulky Items/
Reusable
Materials
Other
(Specify) Subtotal
LaborͲRelated Costs (include regular & pool personnel)
Regular Wages $83,639 $83,639
Overtime Wages $13,487 $13,487
Holiday Wages $8,631 $8,631
Vacation Wages $10,919 $10,919
Sick Leave Wages $4,475 $4,475
Workers Compensation Insurance Premiums $11,022 $11,022 Workers Compensation Claims $0
Health & Welfare $41,005 $41,005
Pension/ Retirement Benefits $12,236 $12,236
Payroll Taxes $9,380 $9,380
Other (Please List) $0
Total Labor RelatedͲCosts $194,793 $0 $194,793
VehicleͲRelated Costs (do not include depreciation)
Tires & Tubes $3,639 $3,639
Parts & Supplies (fluid, oil, etc,) $12,005 $12,005
Outside Repairs $7,283 $7,283
Taxes & Licenses $3,985 $3,985
OnͲBoard Computer Operational Costs $2,168 $2,168
Other (Please List) $0
Total VehicleͲRelated Costs $29,080 $0 $29,080
Fuel Costs $16,858 $16,858
Other Costs
Liability & Property Damage Insurance $12,506 $12,506
Equipment Insurance $0
Training & Safety Programs $1,133 $1,133
Uniforms $970 $970
Towing $1,616 $1,616
Total Other Costs $16,226 $0 $16,226
Direct Depreciation
Container Depreciation $8,350 $8,350
Route Vehicle Depreciation $26,644 $26,644
Other Depreciation $0
Total Direct Depreciation $34,994 $0 $34,994
Rate Period One
From February 1, 2021 to January 31, 2022

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Form 6E
Detailed Collection Cost Proposal Information City of Cupertino Future Services Proposer Name: Recology
Note to Recology:Input data in yellow shaded areas only.

OTHER COSTS
Bulky Items/
Reusable
Materials
Other
(Specify) Subtotal
Rate Period One
From February 1, 2021 to January 31, 2022
Allocated CostsͲLabor, Vehicle, Fuel & Other Costs
From General and Administrative (6F) $60,241 $0 $60,241 From Vehicle Maintenance (6F) $29,201 $0 $29,201
From Container Maintenance (6F) $197 $0 $197
Total Allocated CostsͲLabor, Vehicle, Fuel & Other Costs $89,640 $0 $89,640 Allocated CostsͲDepreciation and StartͲUp Costs
From General and Administrative (6F) $1,059 $0 $1,059
From Vehicle Maintenance (6F) $0 $0 $0
From Container Maintenance (6F) $0 $0 $0
Total Allocated CostsͲDepreciation and StartͲUp Costs $1,059 $0 $1,059 Total Cost of Operations $382,650 $0 $382,650
Profit (Enter % Operating Ratio; i.e. 95%): 72.5 % $145,143 $0 $145,143 PassͲThrough Costs per ton
Disposal Cost $45.33 $0 $0 $0
Recyclables Processing Costs $34.50 $0 $0 $0
Bulky Items/Reusable Materials Handling Costs $Ͳ $0 $0 $0 Other Processing Costs: __________ (specify) $Ͳ $0 $0 $0 Organics Processing CostsͲFacility #1 $88.98 $0 $0 $0 Organics Processing CostsͲFacility #2 $121.04 $0 $0 $0 C&D Processing Costs $45.33 $0 $0 $0
Interest Expense $13,547 $13,547
Direct Lease Costs
Route Vehicles $0
Other (Please List) $0
Total Direct Lease Costs $0 $0 $0
Allocated Lease Costs
From General and Administrative (6F) $5,400 $0 $5,400
From Vehicle Maintenance (6F) $0 $0 $0
From Container Maintenance (6F) $0 $0 $0
Total Allocated Lease Costs $5,400 $0 $5,400
Total PassͲThrough Costs $18,947 $0 $18,947
Total Cost $546,740 $0 $546,740

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Form 6F
Detailed Collection Cost Proposal Information City of Cupertino Future Services Proposer Name: Recology
Note to Recology:Input data in yellow shaded areas only.

PROPOSED ALLOCATED COST
General and
Administrative
Vehicle
Maintenance
Container
Maintenance Subtotal
LaborͲRelated Costs (include nonͲroute personnel only)
Regular Wages $569,984 $378,845 $948,829
Overtime Wages $7,056 $107,714 $114,770
Holiday Wages $16,131 $30,990 $47,121
Vacation Wages $54,287 $39,933 $94,220
Sick Leave Wages $16,003 $16,003
Workers Compensation Insurance Premiums $10,052 $42,427 $52,479 Workers Compensation Claims $0
Health & Welfare $137,192 $162,936 $300,128
Pension/ Retirement Benefits $48,367 $46,575 $94,942
Payroll Taxes $43,120 $43,922 $87,042
Other (Please List) $0
Total Labor RelatedͲCosts $886,189 $869,343 $0 $1,755,533 VehicleͲRelated Costs
Tires & Tubes $0
Parts & Supplies (fluid, oil, etc,) $94,035 $6,569 $100,604 Taxes & Licenses
Other (Please List) $0
Total VehicleͲRelated Costs $0 $94,035 $6,569 $100,604
Fuel Costs $0
Other Costs
Liability & Property Damage Insurance $0
Equipment Insurance $0
RentͲTruck & Container Yard $51,039 $51,039
Utilities $20,295 $20,295
Building Maintenance, Janitorial, Security $37,304
Telephone $82,036 $82,036
Postage $5,392
Bank Fees $25,855
Billing Services $26,848
NonͲvehicle Related Supplies $13,978 $13,978
NonͲvehicle Related Taxes & Licenses $31,500 $31,500
Training & Safety Programs $2,354 $2,354
Ongoing, Annual Public Education & Outreach Efforts $52,738 $52,738 Uniforms $0
Professional ServicesͲAccounting, Legal, Engineering $35,000 $10,000 Bad Debt $65,784 $65,784
Performance Bond $15,200 $15,200
Regional Accounting (GL Accounting, AR, Accounting Mgr, Controller) $77,087 Regional Management (HR, Safety, Enviornmental, Group Mgr) $96,612 Corporate Finance $58,289
C2C $118,827
Corporate Information Technology $153,225
Corporate Environmental Compliance $13,105
Corporate Human Resources $52,783
Corporate Legal $25,160
Corporate Admininstration $48,376 $48,376
Travel & Meals (Most is travel for mileage reimbursements) $13,070 Other (Please List) $0
Total Other Costs $1,121,857 $10,000 $0 $383,300
Total Labor, Vehicle, Fuel, and Other Costs $2,008,046 $973,379 $6,569 $2,239,436 Depreciation (nonͲroute specific) and StartͲUp Costs
Vehicle Depreciation (nonͲroute vehicles) $0
Other Depreciation $0
Initial Public Education & Outreach Efforts $18,911 $18,911 Procurement Cost Reimbursement $0
StartͲup CostsͲ1383 Container Labeling (Year 4 to 10 recovery) $16,400 $16,400 Total Depreciation and StartͲUp Costs $35,311 $0 $0 $35,311 Lease Costs
Facility Costs: 30% of 1675 Rogers Ave Building and Property $180,000 $180,000 Other Lease Costs: _________________________(describe) $0 Total Lease Costs $180,000 $0 $0 $180,000
Rate Period One
From February 1, 2021 to January 31, 2022

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Form 6F
Detailed Collection Cost Proposal Information City of Cupertino Future Services Proposer Name: Recology
Note to Recology:Input data in yellow shaded areas only.

PROPOSED ALLOCATED COST
General and
Administrative
Vehicle
Maintenance
Container
Maintenance Subtotal
Rate Period One
From February 1, 2021 to January 31, 2022
Total Costs to be Allocated $2,223,357 $973,379 $6,569 $2,454,747 Labor, Vehicle, Fuel, & Other Costs Allocated Out Percentage To Residential Cart Solid Waste (6A) 14.00% $281,126 $136,273 $920 $418,319 To Residential Cart Recyclable Materials (6A) 14.00% $281,126 $136,273 $920 $418,319 To Residential Cart Organic Materials (6A) 14.00% $281,126 $136,273 $920 $418,319 To Commercial Cart Solid Waste (6B) 1.06% $21,285 $10,318 $70 $31,673 To Commercial Cart Recyclable Materials (6B) 5.01% $100,603 $48,766 $329 $149,698 To Commercial Cart Organic Materials (6B) 5.80% $116,467 $56,456 $381 $173,304 To Commercial Bin Solid Waste (6C) 14.51% $291,367 $141,237 $953 $433,558 To Commercial Bin Recyclable Materials (6C) 10.82% $217,271 $105,320 $711 $323,301 To Commercial Bin Organic Materials (6C) 5.80% $116,467 $56,456 $381 $173,304 To RollͲOff (6D) 12.00% $240,965 $116,805 $788 $358,559 To HHW (6E) 0.00% $0 $0 $0 $0
To Bulky Item Service (6E) 3.00% $60,241 $29,201 $197 $89,640 Total Labor, Vehicle, Fuel & Other Costs Allocated Out 100.00% $2,008,046 $973,379 $6,569 $2,987,993 Depreciation and StartͲUp Costs Allocated Out
To Residential Cart Solid Waste (6A) 14.00% $4,944 $0 $0 $4,944 To Residential Cart Recyclable Materials (6A) 14.00% $4,944 $0 $0 $4,944 To Residential Cart Organic Materials (6A) 14.00% $4,944 $0 $0 $4,944 To Commercial Cart Solid Waste (6B) 1.06% $374 $0 $0 $374 To Commercial Cart Recyclable Materials (6B) 5.01% $1,769 $0 $0 $1,769 To Commercial Cart Organic Materials (6B) 5.80% $2,048 $0 $0 $2,048 To Commercial Bin Solid Waste (6C) 14.51% $5,124 $0 $0 $5,124 To Commercial Bin Recyclable Materials (6C) 10.82% $3,821 $0 $0 $3,821 To Commercial Bin Organic Materials (6C) 5.80% $2,048 $0 $0 $2,048 To RollͲOff (6D) 12.00% $4,237 $0 $0 $4,237
To HHW (6E) 0.00% $0 $0 $0 $0
To Bulky Item Service (6E) 3.00% $1,059 $0 $0 $1,059
Total Depreciation and StartͲUp Costs Allocated Out 100.00% $35,311 $0 $0 $35,311 Lease Costs Allocated Out
To Residential Cart Solid Waste (6A) 14.00% $25,200 $0 $0 $25,200 To Residential Cart Recyclable Materials (6A) 14.00% $25,200 $0 $0 $25,200 To Residential Cart Organic Materials (6A) 14.00% $25,200 $0 $0 $25,200 To Commercial Cart Solid Waste (6B) 1.06% $1,908 $0 $0 $1,908 To Commercial Cart Recyclable Materials (6B) 5.01% $9,018 $0 $0 $9,018 To Commercial Cart Organic Materials (6B) 5.80% $10,440 $0 $0 $10,440 To Commercial Bin Solid Waste (6C) 14.51% $26,118 $0 $0 $26,118 To Commercial Bin Recyclable Materials (6C) 10.82% $19,476 $0 $0 $19,476 To Commercial Bin Organic Materials (6C) 5.80% $10,440 $0 $0 $10,440 To RollͲOff (6D) 12.00% $21,600 $0 $0 $21,600
To HHW (6E) 0.00% $0 $0 $0 $0
To Bulky Item Service (6E) 3.00% $5,400 $0 $0 $5,400
Total Lease Costs Allocated Out 100.00% $180,000 $0 $0 $180,000 Total Allocated Out $2,223,357 $973,379 $6,569 $3,203,304

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Form 7
Disposal/Processing Cost Proposal City of Cupertino Future Services Proposer Name: Recology
Please provide all costs as $/Ton effective for Rate Period One (February 1, 2021 through January 31, 2022).Include processing residue disposal costs in "Disposal/Processing Cost" Note to Recology: Input data in yellow shaded areas only.Disposal/Processing Costs Solid WasteͲNewby Island
Recyclable MaterialsͲ
Greenwaste Recovery
Organic Materials
(Facility 1)Ͳ
South Valley Organics
Organic Materials
(Facility 2)Ͳ
Blossom Valley Organics
North C&DͲNewby Island
Bulky Items/
Reusable Materials
Handling
Other
(Specify)
Disposal/Processing Cost ($/ton) $45.33 $34.50 $71.50 $90.00 $45.33 $0.00 Disposal/Processing Facility Regulatory Fees & Taxes (list separately) ________________________________________________________________________________________________________________________________________________ Total Regulatory Fees ($/ton) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total Disposal/Processing Cost ($/ton) $45.33 $34.50 $71.50 $90.00 $45.33 $0.00 $0.00Processor Fee and Curbside Supplemental Revenues from CRV ($/ton) (show as a negative value)
Revenues from the Sale of Materials ($/ton)
(show as a negative value)
Net Disposal/Processing Cost ($/Ton)* $45.33 $34.50 $71.50 $90.00 $45.33 $0.00 $0.00 * If the net is a revenue, net processing cost/ton is to show as a negative amount.Transfer Costs (if applicable) Solid WasteͲNewby Island
Recyclable MaterialsͲ
Greenwaste Recovery
Organic Materials
(Facility 1)Ͳ
South Valley Organics
Organic Materials
(Facility 2)Ͳ
Blossom Valley Organics
North C&DͲNewby Island
Bulky Items/
Reusable Materials
Handling
Other
(Specify)
Transfer Station Cost ($/Ton)** $16.96 $30.52Transfer Station Regulatory Fees & Taxes (list separately) City of San Jose LEA Fee $0.52 $0.52
________________________________________________
________________________________________________________________________ Total Regulatory Fees ($/ton) $0.00 $0.00 $0.52 $0.52 $0.00 $0.00 $0.00 Total Transfer Cost ($/ton) $0.00 $0.00 $17.48 $31.04 $0.00 $0.00 $0.00 ** Transfer station fee to include all transfer facilityͲrelated costs and the longͲhaul transportation costs from thetransfer station to the processing facility.Total Disposal/Processing Costs Solid WasteͲNewby Island
Recyclable MaterialsͲ
Greenwaste Recovery
Organic Materials
(Facility 1)Ͳ
South Valley Organics
Organic Materials
(Facility 2)Ͳ
Blossom Valley Organics
North C&DͲNewby Island
Bulky Items/
Reusable Materials
Handling
Other
(Specify)
Total Net Disposal/Processing Costs Including Transfer $45.33 $34.50 $88.98 $121.04 $45.33 $0.00 $0.00 Rate Period One (February 1, 2021 through January 31, 2022) Rate Period One (February 1, 2021 through January 31, 2022) Rate Period One (February 1, 2021 through January 31, 2022)

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Collection Vehicle Transport Costs City of Cupertino Base Services Proposer Name: Recology Note to Recology: Input data in yellow shaded areas only.

Solid Waste Recyclables
Organic
Materials Solid Waste Recyclables
Organic
Materials Solid Waste Recyclables
Organic
Materials Solid Waste Recyclables
Organic
Materials As Needed As Needed
TruckType ASL ASL ASL ASL MSL ASL FEL FEL FEL RollͲOff RollͲOff RollͲOff N/A Collection vehicle transport rate ($ per hour)
(Total CostͲForm6/Total HoursͲForm2) $291.70 $291.70 $291.70 $291.70 $291.70 $291.70 $291.70 $291.70 $291.70 $291.70 $291.70 $291.70 $291.70 Average tons per load (tons) 7.4 4.0 7.2 7.4 4.0 7.2 8.2 3.5 8.7 2.7 1.8 5.7 5.7Recology: If using more than one truck type for one or more material types, copy rows 8Ͳ10 and complete Residential Cart Collection MultiͲFamily & Commercial Cart MultiͲFamily & Commercial Bin RollͲOff Other Average
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EXHIBIT G3:

INITIAL RATES FOR COLLECTION SERVICES
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Commercial/Multi Family Recycle Rate Schedule
City of Cupertino
February 1, 2021
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EXHIBIT G4:

APPROVED SUBCONTRACTORS AND AFFILIATES
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EXHIBIT G4

APPROVED SUBCONTRACTORS AND AFFILIATES
December 3, 2020 Page G4-1 City of Cupertino/Recology Franchise Exhibit G5 In accordance with Section 3.3 of the Agreement, the City has approved the following Subcontractors and Affiliates to manage the specified services and otherwise assist Contractor in the performance of the requirements of this Agreement.

Approved Facility/Subcontractor/Affiliate Services
GreenWaste Recovery Recyclables Processing
Recology Blossom Valley Organics – North Commercial/Multi-Family Organics Processing South Valley Organics Residential (Single-Family) Organics Processing Toter Inc New Cart rollout
Keith Day Trucking Transfer of Organics from Rogers Ave. to Processing facilities; hauling of compost and
mulch for City
Clean Earth E-Waste and U-Waste Recycling
Viking Shred Document shredding for Environmental Days
Simms Metal White goods/metal Recycling
Safety Klean Used Motor Oil and Filters Recycling
Sequential Recycling Used cooking oil Recycling
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EXHIBIT H:

MINIMUM ANTICIPATED POSITIONS
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EXHIBIT H

MINIMUM ANTICIPATED POSITIONS
December 3, 2020 Page H-1 City of Cupertino/Recology Franchise Exhibit H Positions detailed in this Exhibit H are the minimum anticipated positions needed for the provision of Recyclable Materials, Organic Materials, and Solid Waste Collection services and other related services in the City.

Table 1 represents management positions classified as salary, exempt.

Table 2 represents non-management positions classified as hourly, non-exempt.

Table 1: Management Positions
Position Classification FTE
General Manager Management, Exempt 0.6
Operations Manager Management, Exempt 0.6
Route Supervisor Management, Exempt 1.1
Dispatcher Management, Exempt 0.6
Container Distribution Management, Exempt 0.6
Container Maintenance / Welder Management, Exempt 1.1
Maintenance Supervisor Management, Exempt 0.6
Maintenance Personnel Management, Exempt 2.8
Office Manager Management, Exempt 0.6
Accounting Clerk Management, Exempt 0.6
Financial & Reporting Analyst Management, Exempt 0.75
Customer Service Representatives Management, Exempt 1.1 Waste Zero Specialists Management, Exempt 2.0
Total Management Positions 12.8
Table 2: Non-Management Positions
Position Classification FTE
Route Personnel – Cart Solid Waste Non-Management, Non-Exempt 4.8 Route Personnel – Cart Recyclables Non-Management, Non-Exempt 4.9 Route Personnel – Cart Organics Non-Management, Non-Exempt 3.7 Route Personnel – COM Cart Solid Waste Non-Management, Non-Exempt 0.2 Route Personnel – COM Cart Recyclables Non-Management, Non-Exempt 1.0 Route Personnel – COM Cart Organics Non-Management, Non-Exempt 0.1 Route Personnel – COM Bin Solid Waste Non-Management, Non-Exempt 2.8 Route Personnel – COM Bin Recyclables Non-Management, Non-Exempt 2.1 Route Personnel – COM Bin Organic Materials Non-Management, Non-Exempt 1.1 Route Personnel – Roll-Off Non-Management, Non-Exempt 2.7 Route Personnel – Bulky Non-Management, Non-Exempt 1.3
Non-Management, Non-Exempt
Non-Management, Non-Exempt

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EXHIBIT I:

FORM OF PERFORMANCE BOND
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EXHIBIT I

FORM OF PERFORMANCE BOND
December 3, 2020 Page I-1 City of Cupertino/Recology Franchise Exhibit I 351
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EXHIBIT J:

SB 1383 RESPONSIBILITIES
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EXHIBIT J
SB 1383 RESPONSIBILITIES
December 3, 2020 Page J-1 City of Cupertino/Recology Franchise Exhibit J The following table provides guidance regarding the allocation of broad responsibility between the Contractor and the City with regard to SB 1383 compliance. The table is based on the draft regulations issued for formal review by CalRecycle on April 20, 2020, and assumes use of the standard approach to compliance. The table is not intended to be inclusive of detailed requirements for compliance addressed in the body of the Agreement and does not relieve Contractor of or expand those specific obligations. The below table may contain terms that are specific to SB 1383 or may have capitalized terms with different meanings than this Agreement. In the event of any conflict between this exhibit on the one hand, and the body of the Agreement, any other exhibit, or SB 1383 on the other hand, the latter shall govern.

Topic/
Ref. # SB 1383 Requirement City Responsibility Contractor Responsibility Collection

1. Commencing January 1, 2022, provide
Collection Containers to Generators that comply with color requirements when replacing Containers or by January 1, 2036, whichever comes first (§18984.7).

The City is to review, comment on, and approve Container colors.

Contractor to provide Containers to the City and its Customers that comply with SB 1383 requirements. Container colors shall be as such: green for Organic Materials; blue for Recyclable Containers; gray for Solid Waste Containers.

2. Commencing January 1, 2022, clearly
label or imprint all new Containers or lids to include language or graphic materials indicating primary materials that are accepted and rejected in each Container (§18984.8).

The City is to review, comment on, and approve Container labels.

In accordance with Section 5.6, Contractor to place Cityapproved labels on all new or refurbished Containers; labels should include text and/or graphic images that indicate primary materials that are accepted and primary materials that are not accepted for each Container type. Labels shall be placed on new Containers before or at time of initial Container delivery to Customer or to the City. By the end of Agreement Term, every Customer Container shall have SB 1383-compliant labels.

Contamination Monitoring

3. Commencing April 1, 2022, conduct
Route reviews such that all Hauler Routes are inspected annually. During each Route review, inspect randomly selected Containers for contaminants and determine Organic Waste Generator compliance (Organic Waste Generators must subscribe to collection service or self-haul Organic Materials; commercial Organic Waste Generators are also required to provide color-compliant Containers to their Customers).

The City is to review, comment on, and approve Route review plan and methodology provided by Contractor. The City is to review, comment on, and approve content and design of notices to be distributed by Contractor to noncompliant Generators.

Contractor shall develop a plan and methodology, to be approved by the City, for conducting annual Route reviews such that an adequate number of Containers are inspected on all Routes annually. The number of Containers that must be inspected per Route shall be based on guidelines provided below, as referenced in Section 18984.5. The draft regulations do not specify what an "adequate" number of Containers per Route review entails; however, Section 18984.5 determines adequacy for a different type of contamination study based on Route populations. As such, these guidelines will be utilized for Route reviews. 354
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EXHIBIT J
SB 1383 RESPONSIBILITIES
December 3, 2020 Page J-2 City of Cupertino/Recology Franchise Exhibit J Topic/
Ref. # SB 1383 Requirement City Responsibility Contractor Responsibility If contamination is found during Route reviews or if inspected Generators are out of compliance, notify such Generators of recycling requirements (§18984.5.b; 18995.1; 18984.9). “Route review(s)” means a visual inspection of Containers along a Hauler Route for the purpose of determining contamination, and may include mechanical methods such as the use cameras (§18982). “Hauler Route” means the designated itinerary or sequence of stops for each segment of the jurisdictions collection services.

1. For Routes with less than 1,500 Generators the study shall include a minimum of 25 samples;2. For Routes with 1,500-4,000 Generators the study shall include a minimum of 30 samples;3. For Routes with 4,001-7,000 Generators the study shall include a minimum of 35 samples;4. For Routes with more than 7,000 Generators the study shall include a minimum of 40 samples.In the event that Contractor identifies contamination, Contractor shall be responsible for affixing a Cityapproved notice on to Customer's Containers, documenting the location or account where contamination was present. Contractor shall provide monthly reports to the City summarizing the results of each Route review and recording, at a minimum, each contamination location, corresponding photographic evidence, and date of Customer contamination identified. 355
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EXHIBIT J
SB 1383 RESPONSIBILITIES
December 3, 2020 Page J-3 City of Cupertino/Recology Franchise Exhibit J Topic/
Ref. # SB 1383 Requirement City Responsibility Contractor Responsibility Enforcement & Penalties

4. Commencing January 1, 2022, conduct
annual compliance reviews of commercial Solid Waste accounts that produce over two (2) cubic yards of Solid Waste per week, including organics waste (§18995.1.a).

The City shall, if applicable, provide Contractor with a list of commercial accounts that have received Cityapproved organics collection waivers. The City shall approve format and content of all compliance reports provided by Contractor. The City shall receive Contractor's report, review and clarify as needed, and report to the State. The City shall follow-up with Contractorindicated commercial accounts that may Back-Haul Organic Materials.

Annually, Contractor shall review all Commercial garbage accounts that produce over two (2) cubic yards of Solid Waste per week and that produce organics waste to ensure compliance with organics Generator requirements described in Section 18984.9.a (subscription to organics recycling service). Following each compliance review, Contractor shall provide the City with a report of results, including addresses, and service level information in a format accepted and approved by the City. Additionally, Contractor shall provide to the City, in quarterly reports, a list of Commercial Customers that may be Back-Hauling Organic Materials. The list shall include account information including addresses and service levels.

5. From January 1, 2022 through December
31, 2023, provide educational materials to regulated entities not in compliance with SB 1383, as determined by compliance review of Commercial accounts (§18995.1.a).

The City is to develop content and design of compliance notices for Customers.

Contractor shall produce and distribute City-developed compliance notices to all noncompliant Customers of Contractor annually.

6. Commencing January 1, 2022, conduct
inspections of Tier One Commercial Edible Food Generators for compliance with Section 18991.3. Beginning January 1, 2024, conduct inspections of Tier Two Commercial Edible Food Generators for compliance with Sections 18991.3 (§18995.1.a.2). See Item 16 for outreach requirements related to Edible Food.

The City and Contractor will meet and confer annually to determine how to share this inspection requirement.

The City and Contractor will meet and confer annually to determine how to share this inspection requirement.

7. Commencing January 1, 2022, conduct
inspections of Edible Food recovery
The City is to conduct inspections of Food Recovery Services and organizations.

None.
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EXHIBIT J
SB 1383 RESPONSIBILITIES
December 3, 2020 Page J-4 City of Cupertino/Recology Franchise Exhibit J Topic/
Ref. # SB 1383 Requirement City Responsibility Contractor Responsibility organizations and services for compliance with Sections 18991.5. See Item 16 for outreach requirements related to Edible Food.

8. Commencing January 1, 2022, investigate
written Complaints received within ninety (90) days of receiving Complaint; provide method for Customer who made Complaint to determine results of Complaint; maintain records of all Complaints and responses; take enforcement action if it is determined that a violation has occurred (§18995.3).

The City is to investigate and maintain records of all SB 1383-related Complaints received by Contactor that have not been resolved within thirty (30) days of receiving Customer Complaint. Upon resolving the Complaint, Contractor shall notify the Customer who made the Complaint. From January 1, 2022 to December 31, 2023, if, upon investigation, the City discovers a violation has occurred, the City shall provide educational materials to noncompliant Customers. Commencing January 1, 2024, if, upon investigation, the City discovers a violation has occurred, the City shall take enforcement action against noncompliant Customers.

Contractor to investigate and resolve written Complaints made by Customers alleging SB 1383 violations within thirty (30) days of receiving Customer Complaint. Upon resolving the Complaint, Contractor shall notify the Customer who made the Complaint. From January 1, 2022 to December 31, 2023, if, upon investigation, Contractor discovers a violation has occurred, Contractor shall provide City-approved educational materials to noncompliant Customers. Commencing January 1, 2024, if, upon investigation, Contractor discovers a violation has occurred, Contractor shall provide the City, in monthly reports, with a list of such noncompliant Customers. Contractor shall maintain all compliant records, including documentation of resolution. Contractor to provide the City, in monthly reports, a list of Customer Complaints that have not been resolved within thirty (30) days. The Complaints list shall include Customer account information including the nature of the Complaint. Such Complaints shall be discussed during the monthly Franchise Roundtable Meeting.

9. Commencing January 1, 2024, take
enforcement actions, including issuing notices of violations within sixty (60) days of determining a violation has occurred, following up at least every ninety (90) days to issue further notices if compliance is not achieved, grant The City is to issue penalties to noncompliant Generators based on Contractor-led inspections and monthly reports submitted by Contractor that identify noncompliant Generators.

Contractor to maintain records of noncompliant Generators and report via monthly reports to the City on issuance of noncompliant notices (e.g., contamination tags issued, Route review results, commercial account review). 357
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EXHIBIT J
SB 1383 RESPONSIBILITIES
December 3, 2020 Page J-5 City of Cupertino/Recology Franchise Exhibit J Topic/
Ref. # SB 1383 Requirement City Responsibility Contractor Responsibility compliance deadline extensions if applicable, and impose penalties equivalent to or greater than those outlined in Articles 14 and 16 of SB 1383 (§18995.4). Impose penalties on non-compliant entities (§18997.2).

Education & Outreach

10. By February 1, 2022, and annually
thereafter, provide Generators with information on properly separating materials, Organic Waste prevention, onsite recycling, Community Composting, methane reduction benefits, how to Recycle Organic Waste, a list of approved haulers, and information related to food recovery (§18985.1.a).

The City is to develop content and design of outreach materials and distribute outreach materials to all Customers annually. The City is to provide outreach materials to Contractor for website posting.

Contractor to post City-developed educational material on its website annually or as requested by the City. Contractor shall post material on its website within one week of the City’s initial request and review and make updates/changes to website on a monthly basis to ensure accuracy of information. Contractor to disseminate City-approved educational materials as requested by the City.

11. Translate educational materials required
into any non-English language spoken by a substantial number of the public provided Organic Waste collection services by the jurisdiction (§18985.1.e).

The City is to translate City-developed outreach materials and translate such materials as needed. The City is to provide translated outreach materials to Contractor for website posting.

Contractor to post City-developed educational material that has been translated by the City on its website annually or as requested by the City. Contractor shall post material on its website within one week of the City’s initial request. 358
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EXHIBIT J
SB 1383 RESPONSIBILITIES
December 3, 2020 Page J-6 City of Cupertino/Recology Franchise Exhibit J Topic/
Ref. # SB 1383 Requirement City Responsibility Contractor Responsibility Record Keeping & Reporting

12. By April 1, 2022, file an initial compliance
report that includes copies of adopted ordinances, items required for the annual report under Section 18994.2.b, and contact information for the responsible Party for compliance-related issues (§18994.1). Commencing August 1, 2022, submit an annual report relative to compliance with SB 1383; the first report is due October 1, 2022 for the period of January 1, 2022 to June 30, 2022 (§18994.2).

The City is to compile and submit relevant documentation for the initial compliance report and the annual report. The City shall compile documentation that details the City's: hauler oversight; CALGreen building standard utilization; edible food recovery program; Organic Waste recycling and edible food recovery capacity planning; and, Organic Waste product procurements.

No later than February 1, 2022, and within two weeks of the City request, Contractor shall supply the City with reports documenting Organic Waste collection services; contamination monitoring; education and outreach efforts; and, the monitoring and enforcement program.

13. Maintain all implementation records in a
central location (physical or electronic) that can be made available to or accessed by CalRecycle within ten Business Days (§18981.1, 18984.4.a, 18984.6, 18984.14, 18985.3, 18988.4, 18991.2, 18993.2, 18995.2).

The City is to maintain all implementation records including: ordinances, enforceable mechanisms, contracts, or agreements; waiver and exemption records; hauler program records; edible food recovery program records; and organic waste procurement records.

Contractor shall enter required data including documentation of organic waste collection services; contamination monitoring; education and outreach efforts; and, monitoring and enforcement into a Citydesignated reporting platform (e.g., Recyclist, Microsoft Excel, a database) within five (5) Business Days of any change affecting data within any required reporting category and within one (1) Business Days of notification from CalRecycle request to review implementation record. In the event such information is not entered into a shared electronic platform, Contractor shall convey data to the City within the required period.

Organic Materials Procurement

14. Procure a quantity of recovered organic
waste that meets or exceeds the organic waste product procurement target as determined by the CalRecycle (CalRecycle will confirm and provide notice of annual procurement requirements to jurisdictions every five years) (§18993.1).

The City is to procure a quantity of Compost and Mulch from Contractor annually. The exact quantity for procurement shall be determined by the Parties.

Contractor to Transport Organic Materials collected from Customers to the Approved Facility. Contractor shall, at the City’s option, procure fuels derived from organics disposal (biofuels) to power collection vehicles. 359
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EXHIBIT J
SB 1383 RESPONSIBILITIES
December 3, 2020 Page J-7 City of Cupertino/Recology Franchise Exhibit J Topic/
Ref. # SB 1383 Requirement City Responsibility Contractor Responsibility

15. Procure Paper Products, and printing and
writing paper consistent with the requirements of Section 22150-22154 of the Public Contracts Code. These Paper Products shall be Recyclable (as defined in 16 C.F.R. 260.12). Jurisdiction shall require all businesses that it purchases Paper Products and printing/writing paper from to certify minimum percentage of postconsumer material in the Paper Products (§18993.3).

The City is to update Environmentally Preferable Purchasing Policy with requirements set forth in SB 1383.

Contractor to develop or update existing Purchasing Policy to meet minimum SB 1383 paper procurement requirements.

Edible Food Recovery

16. Commencing January 1, 2022, annually
provide Tier One and Tier Two Edible Food Generators with information about the food recovery program, Generator requirements, Food Recovery Organizations and services, and edible food source-reduction information (§18985.2).

The City is to develop and distribute annual outreach materials for Commercial Edible Food Generators businesses.

Contractor to post City-developed educational material on its website annually or as requested by the City. Contractor shall post material on its website within one week of the City’s initial request and review and make updates/changes to website on a monthly basis to ensure accuracy of information. 360
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EXHIBIT K:

GUARANTY AGREEMENT
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EXHIBIT K

GUARANTY AGREEMENT
December 3, 2020 Page K-1 City of Cupertino/Recology Franchise Exhibit K THIS GUARANTY (the "Guaranty") is given as of the [___] day of [________], 2020, by Recology Inc., ("Guarantor"), to the CITY OF CUPERTINO ("CITY").

THIS GUARANTY is made with reference to the following facts and circumstances:

A. Recology South Bay (d/b/a Recology Cupertino) (“Contractor”) is a corporation organized under the laws of the State of California, all of the issued and outstanding stock of which is owned by Guarantor.

B. Guarantor is a corporation organized under the laws of the State of California.

C. Contractor and City have negotiated a Franchise Agreement for Recyclable Materials, Organic Materials, and Solid Waste Collection, Recyclable Materials and Organic Materials Processing Services, and Transport For Disposal (such agreement, as it may be amended, modified or waived from time to time, the “Agreement”), under which Contractor is to provide specified services to City. A copy of this Agreement is attached hereto and incorporated herein by this reference.

D. It is a requirement of the Agreement, and a condition to City's entering into the Agreement, that Guarantor guaranty Contractor's performance of the Agreement.

E. Guarantor is providing this Guaranty to induce City to enter into the Agreement.

NOW, THEREFORE, in consideration of the foregoing, Guarantor agrees as follows:

1. Guaranty of the Agreement. Guarantor hereby irrevocably and unconditionally guarantees to City the complete and timely performance, satisfaction and observation by Contractor of each and every term and condition of the Agreement which Contractor is required to perform, satisfy or observe. In the event that Contractor fails to perform, satisfy or observe any of the terms or conditions of the Agreement, Guarantor will promptly and fully perform, satisfy or observe them in the place of the Contractor. Guarantor hereby guarantees prompt payment to City of each and every sum due from Contractor to City under the Agreement, as and when due from time to time, and the prompt performance of every other task and duty required to be performed by the Contractor under the Agreement.

2. Guarantor’s Obligations Are Absolute. The obligations of the Guarantor hereunder are direct, immediate, absolute, continuing, unconditional and unlimited and, with respect to any payment obligation of Contractor under the Agreement, shall constitute a guarantee of payment and not of collection, and are not conditioned upon the genuineness, validity, regularity or enforceability of the Agreement.

3. Waivers and Subordination. The Guarantor shall have no right to terminate this Guaranty or to be released, relieved, exonerated or discharged from its obligations under Section 1 hereof for any reason whatsoever, including, without limitation: (1) the insolvency, bankruptcy, reorganization or cessation of existence of the Contractor; (2) any amendment, modification or waiver of any provision of the Agreement or the extension of its Term; (3) the actual or purported rejection of the Agreement by a trustee in bankruptcy, or any limitation on any claim in bankruptcy resulting from the actual or purported termination of the Agreement; (4) any waiver, extension, release or modification with respect to any of the obligations of the 363
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EXHIBIT K

GUARANTY AGREEMENT
December 3, 2020 Page K-2 City of Cupertino/Recology Franchise Exhibit K Agreement guaranteed hereunder or the impairment or suspension of any of City's rights or remedies against Contractor; or (5) any merger or consolidation of the Contractor with any other organization, or any sale, lease or transfer of any or all the assets of the Contractor.

The Guarantor hereby waives any and all rights, benefits and defenses under California Civil Code Sections 2809, 2815, 2819, 2845, 2849 and 2850, and all other rights permitted to be waived by Section 2856(a) including, without limitation, the right to require City to (a) proceed against Contractor, (b) proceed against or exhaust any security or collateral City may hold now or hereafter hold, or (c) pursue any other right or remedy for Guarantor’s benefit, and agree that City may proceed against Guarantor for the obligations guaranteed herein without taking any action against Contractor or any other guarantor or pledgor and without proceeding against or exhausting any security or collateral City may hold now or hereafter hold. City may unqualifiedly exercise in its sole discretion any or all rights and remedies available to it against Contractor or any other guarantor or pledgor without impairing City’s rights and remedies in enforcing this Guarantee.

The Guarantor hereby waives and agrees to waive at any future time at the request of City, to the extent now or then permitted by applicable law, any and all rights which the Guarantor may have or which at any time hereafter may be conferred upon it, by statute, regulation or otherwise, to avoid any of its obligations under, or to terminate, cancel, quit or surrender this Guaranty. Without limiting the generality of the foregoing, it is agreed that the occurrence of any one or more of the following shall not affect the liability of the Guarantor hereunder:
(a) at any time or from time to time, without notice to the Guarantor, the time for Contractor's performance of or compliance with any of its obligations under the Agreement is extended, or such performance or compliance is waived; (b) the Agreement is modified or amended in any respect; (c) any other indemnification with respect to Contractor's obligations under the Agreement or any security therefore is released or exchanged in whole or in part or otherwise dealt with; (d) any assignment of the Agreement is effected which does not require City's approval; or (e) any termination or suspension of the Agreement arising by reason of a default by Contractor.

The Guarantor hereby expressly waives diligence, presentment, demand for payment or performance, protest and all notices whatsoever, including, but not limited to, notices of nonpayment or non-performance, notices of protest, notices of any breach or default, and notices of acceptance of this Guaranty. If all or any portion of the obligations guaranteed hereunder are paid or performed, Guarantor’s obligations hereunder shall continue and remain in full force and effect in the event that all or any part of such payment or performance is avoided or recovered directly or indirectly from City as a preference, fraudulent transfer or otherwise, irrespective of (a) any notice of revocation given by Guarantor or Contractor prior to such avoidance or recovery, or (b) payment in full of any obligations then outstanding.

The Guarantor expressly subordinates and waives its rights to subrogation, reimbursement, contribution or indemnity with respect to performance by Guarantor of the obligations of Contractor guaranteed hereby, until such time as City receives payment or performance in full of all such obligations.
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EXHIBIT K

GUARANTY AGREEMENT
December 3, 2020 Page K-3 City of Cupertino/Recology Franchise Exhibit K

4. Term. This Guaranty is not limited to any period of time, but shall continue in full force and effect until all of the terms and conditions of the Agreement have been fully performed by Contractor, and Guarantor shall remain fully responsible under this Guaranty without regard to the acceptance by City of any performance bond or other collateral to assure the performance of Contractor's obligations under the Agreement. Guarantor shall not be released of its obligations hereunder so long as there is any claim by City against Contractor arising out of the Agreement based on Contractor's failure to perform which has not been settled or discharged.

5. No Waivers by City. No delay on the part of City in exercising any rights under this Guaranty or failure to exercise such rights shall operate as a waiver of such rights. No notice to or demand on Guarantor shall be a waiver of any obligation of Guarantor or right of City to take other or further action without notice or demand. No modification or waiver by City of any of the provisions of this Guaranty shall be effective unless it is in writing and signed by City and by Guarantor, nor shall any waiver by City be effective except in the specific instance or matter for which it is given.

6. Attorney's Fees. In addition to the amounts guaranteed under this Guaranty, Guarantor agrees to pay actual attorney's fees and all other costs and expenses incurred by City in enforcing this Guaranty, or in any action or proceeding arising out of or relating to this Guaranty, including any action instituted to determine the respective rights and obligations of the parties hereunder.

7. Governing Law; Jurisdiction. This Guaranty is and shall be deemed to be a contract entered into in and pursuant to the laws of the State of California and shall be governed and construed in accordance with the laws of California without regard to its conflicts of laws rules for all purposes, including, but not limited to, matters of construction, validity and performance.

Guarantor agrees that any action brought by City to enforce this Guaranty may be brought in any court of the State of California and Guarantor consents to personal jurisdiction over it by such courts. Guarantor appoints the following person as its agent for service of process in California:

Roxanne L. Frye
Recology Inc.
50 California Street, 24th Floor
San Francisco, CA 94111

8. Severability. If any portion of this Guaranty is held to be invalid or unenforceable, such invalidity shall have no effect upon the remaining portions of this Guaranty, which shall be severable and continue in full force and effect.

9. Binding on Successors. This Guaranty shall inure to the benefit of City and its successors and shall be binding upon Guarantor and its successors, including a successor entity formed by a merger or consolidation, a transferee of substantially all of its assets, and its shareholders in the event of its dissolution or insolvency.
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EXHIBIT K

GUARANTY AGREEMENT
December 3, 2020 Page K-4 City of Cupertino/Recology Franchise Exhibit K

10. Authority. Guarantor represents and warrants that it has the corporate power to give this guaranty, that its execution of this Guaranty has been authorized by all necessary action under its Articles of Incorporation and by-laws, and that the person signing this Guaranty on its behalf has authority to do so.

11. Notices. Notice shall be given in writing, deposited in the U.S. mail, registered or certified, first class postage prepaid, addressed as follows:

To City: City of Cupertino
Attention: City Manager
10300 Torre Avenue
Cupertino, California, 95014,
To Guarantor: Recology Inc.

Attn: Legal Department
50 California Street, 24th Floor
San Francisco, CA 94111
The parties may change the address to which notice is to be sent by giving the other party notice of the change as provided in this Section.

IN WITNESS WHEREOF, Guarantor has executed this Guaranty on the day and year first above written.

By:

Michael J. Sangiacomo
Chief Executive Officer
By:

Cary Chen
Corporate Secretary
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EXHIBIT L:

DIVERSION DATA
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Resolution No. __________________ Attachment B
RESOLUTION NO. ________

A RESOLUTION OF THE CUPERTINO CITY COUNCIL

ADOPTING A MAXIMUM RATE SCHEDULE FOR RATE PERIOD SIX PER THE

FRANCHISE AGREEMENT WITH RECOLOGY CUPERTINO RELATED TO RECYCLING, ORGANICS, AND SOLID WASTE COLLECTION, PROCESSING, AND DISPOSAL.

WHEREAS, pursuant to state constitutional and statutory authority, the City of Cupertino has the authority to regulate the handling of solid waste within its jurisdiction; and WHEREAS, the City enacted and maintains Municipal Code Chapters 6.24 and 9.16, in part, to satisfy solid waste collection and diversion obligations, and other requirements of the California Integrated Waste Management Act AB 939, Assembly Bill 1826, the Short-Lived Climate Pollutants Bill of 2016 SB 1383, and related laws and regulations; and WHEREAS, pursuant to Municipal Code Section 6.24.120 and applicable statutory authority, where the public health, safety, and well-being require it, the City may award an exclusive franchise to any person or entity the City Council believes is qualified to perform solid waste collection service; and
WHEREAS, the City has determined that collection of solid waste, which includes garbage, recyclables, and organic waste, is a health, sanitary, and safety measure necessary for the promotion, protection, and preservation of the health, safety, and general welfare of the people of the City, and the City and its residents benefit from granting an exclusive franchise for same; and
WHEREAS, in 2020 the City entered an exclusive franchise agreement with Recology South Bay d/b/a Recology Cupertino (“Recology”) for collection and processing or recyclable and compostable materials, and the collection of disposal of garbage (the “Existing Franchise Agreement”), the base term of which is scheduled to expire on January 31, 2031; and WHEREAS, the City does not provide solid waste collection services; rather, it regulates the private solid waste collection industry to protect public health, safety and welfare and ensure compliance with applicable laws; and
WHEREAS, as part of its regulatory role, pursuant to Municipal Code Section 6.24.150, the City reserves the right to establish a maximum schedule of rates and charges for all levels of solid waste collection services to be rendered by the solid waste collector in order to avoid an abuse of the franchise rights granted; and
WHEREAS, the Existing Franchise Agreement with Recology includes a methodology set forth in Exhibit E.1 to the agreement for determining the maximum schedule of rates and charges for all levels of solid waste collection services for Rate Period Six; and 369 CC 11-18-2025
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Resolution No. __________________ Attachment B
WHEREAS, the City reviewed all aspects of the rate request from Recology using the approved methodology; and
WHEREAS, the solid waste collector is solely responsible for setting and collecting such rates and charges at a level at or below the established maximum schedule; and NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby:

1. Acknowledge the foregoing recitals are true and correct and incorporated into this Resolution by this reference.

2. Adopt the maximum rate schedule for Rate Period Six (beginning February 1, 2026) (Exhibit A).

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 18th day of November, 2025, by the following vote:

Members of the City Council
AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED:
________
Liang Chao, Mayor
City of Cupertino
________________________
Date
ATTEST:
________
Kirsten Squarcia, City Clerk

________________________
Date
Exhibit A
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Exhibit A
Residential Rate Schedule
City of Cupertino
February 1, 2026
Single Family Dwelling
Curbside 24 gallon $43.48
Curbside 32 gallon $46.24
Curbside 64 gallon $89.00
Curbside 96 gallon $131.75
Curbside Add'l Cart $42.75
Walk-up 24 gallon $66.44
Walk-up 32 gallon $69.22
Walk-up 64 gallon $134.91
Walk-up 96 gallon $200.61
Walk-up Add'l Cart $65.70
Additional Organics/YW Toter: No Charge
YW Exempt Residents Are Entitled To A 32g Organics cart: No Charge Low Income
Curbside 24 gallon $21.01
Curbside 32 gallon $23.77
Walk-up 24 gallon $34.28
Walk-up 32 gallon $37.05
Late Charge Fee

1.2% Per Month Delinquent
(Not compounded)
Additional Charges
Extra Bag Tag $12.43
10 Bag Tags $118.28
Extra Can (1-Time) $21.42
Dirty Cart Exchange $48.38
24 HR Container Service
Bin By The Day 4 Yard $276.48
Bin By The Day 6 Yard $338.61
Bin By The Day 7 Yard $369.67
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Multi-Family Garbage Rate Schedule
City of Cupertino
February 1, 2026
Front Loader Containers

1.5 CY 1XWK $217.18 1.5 CY 4XWK $868.79

1.5 CY 2XWK $434.41 1.5 CY 5XWK $1,086.00

1.5 CY 3XWK $651.58 1.5 CY 6XWK $1,303.15
Extra P/U $67.36
2 CY 1XWK $260.69 2 CY 4XWK $1,042.50
2 CY 2XWK $521.22 2 CY 5XWK $1,303.15
2 CY 3XWK $781.93 2 CY 6XWK $1,563.75
Extra P/U $84.18
3 CY 1XWK $347.50 3 CY 4XWK $1,390.07
3 CY 2XWK $695.00 3 CY 5XWK $1,737.55
3 CY 3XWK $1,042.50 3 CY 6XWK $2,085.04
Extra P/U $92.06
4 CY 1XWK $434.41 4 CY 4XWK $1,737.55
4 CY 2XWK $868.79 4 CY 5XWK $2,171.98
4 CY 3XWK $1,303.15 4 CY 6XWK $2,606.32
Extra P/U $114.79
6 CY 1XWK $608.13 6 CY 4XWK $2,432.57
6 CY 2XWK $1,216.28 6 CY 5XWK $3,040.71
6 CY 3XWK $1,824.41 6 CY 6XWK $3,648.87
Extra P/U $159.74
8 CY 1XWK $781.95 8 CY 4XWK $3,127.58
8 CY 2XWK $1,563.75 8 CY 5XWK $3,909.47
8CY 3XWK $2,345.72 8CY 6XWK $4,691.37
Extra P/U $206.60
Bin Pushout Service
1XWK $76.48 4XWK $306.28
2XWK $153.35 5XWK $382.30
3XWK $229.61 6XWK $459.82
* Pushout service only applies if containers are moved more than 25ft.

Cart Pushout Service per set of 3 carts: Garbage, Recycle, Organic 1XWK $18.09 4XWK $72.30
2XWK $36.15 5XWK $90.38
3XWK $54.23 6XWK $108.45
* Pushout service only applies if containers are moved more than 25ft. Rate includes up to 50ft.

More than 50ft add an additional 10% for each additional 10ft.

Front Load Compactor Per Cubic Yard
$61.35
Key Service
$85.15
Special Services $141.97
Steam Clean and Re-Delivery of Bin
(Shall be provided once per year w/o charge)
Furnishing Chains (One Time Only)
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Commercial Garbage Rate Schedule
City of Cupertino
February 1, 2026
Front Loader Containers

1.5 CY 1XWK $217.18 1.5 CY 4XWK $868.79

1.5 CY 2XWK $434.41 1.5 CY 5XWK $1,086.00

1.5 CY 3XWK $651.58 1.5 CY 6XWK $1,303.15
Extra P/U $67.36
2 CY 1XWK $260.69 2 CY 4XWK $1,042.50
2 CY 2XWK $521.22 2 CY 5XWK $1,303.15
2 CY 3XWK $781.93 2 CY 6XWK $1,563.75
Extra P/U $84.18
3 CY 1XWK $347.50 3 CY 4XWK $1,390.07
3 CY 2XWK $695.00 3 CY 5XWK $1,737.55
3 CY 3XWK $1,042.50 3 CY 6XWK $2,085.04
Extra P/U $92.06
4 CY 1XWK $434.41 4 CY 4XWK $1,737.55
4 CY 2XWK $868.79 4 CY 5XWK $2,171.98
4 CY 3XWK $1,303.15 4 CY 6XWK $2,606.32
Extra P/U $114.79
6 CY 1XWK $608.13 6 CY 4XWK $2,432.57
6 CY 2XWK $1,216.28 6 CY 5XWK $3,040.71
6 CY 3XWK $1,824.41 6 CY 6XWK $3,648.87
Extra P/U $159.74
8 CY 1XWK $781.95 8 CY 4XWK $3,127.58
8 CY 2XWK $1,563.75 8 CY 5XWK $3,909.47
8CY 3XWK $2,345.72 8CY 6XWK $4,691.37
Extra P/U $206.60
Bin Pushout Service
1XWK $76.48 4XWK $306.28
2XWK $153.35 5XWK $382.30
3XWK $229.61 6XWK $459.82
* Pushout service only applies if containers are moved more than 25ft.

Cart Pushout Service per set of 3 carts: Garbage, Recycle, Organic 1XWK $18.09 4XWK $72.30
2XWK $36.15 5XWK $90.38
3XWK $54.23 6XWK $108.45
* Pushout service only applies if containers are moved more than 25ft. Rate includes up to 50ft.

More than 50ft add an additional 10% for each additional 10ft. 32 Return Trip Fee $18.03
Commercial Garbage Cart
gallon increments $33.35
Key Service
$85.15
Special Services $141.97
Steam Clean and Re-Delivery of Bin
(Shall be provided once per year w/o charge)
Furnishing Chains (One Time Only)
Front Load Compactor Per Cubic Yard
$61.35
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Commercial/Multi Family Organic Rate Schedule
City of Cupertino
February 1, 2026
Front Loader Containers

1.5 CY 1XWK $217.18 1.5 CY 4XWK $868.79

1.5 CY 2XWK $434.41 1.5 CY 5XWK $1,086.00

1.5 CY 3XWK $651.58 1.5 CY 6XWK $1,303.15
Extra P/U $67.36
2 CY 1XWK $260.69 2 CY 4XWK $1,042.50
2 CY 2XWK $521.22 2 CY 5XWK $1,303.15
2 CY 3XWK $781.93 2 CY 6XWK $1,563.75
Extra P/U $84.18
3 CY 1XWK $347.50 3 CY 4XWK $1,390.07
3 CY 2XWK $695.00 3 CY 5XWK $1,737.55
3 CY 3XWK $1,042.50 3 CY 6XWK $2,085.04
Extra P/U $92.06
4 CY 1XWK $434.41 4 CY 4XWK $1,737.55
4 CY 2XWK $868.79 4 CY 5XWK $2,171.98
4 CY 3XWK $1,303.15 4 CY 6XWK $2,606.32
Extra P/U $114.79
6 CY 1XWK $608.13 6 CY 4XWK $2,432.57
6 CY 2XWK $1,216.28 6 CY 5XWK $3,040.71
6 CY 3XWK $1,824.41 6 CY 6XWK $3,648.87
Extra P/U $159.74
8 CY 1XWK $781.95 8 CY 4XWK $3,127.58
8 CY 2XWK $1,563.75 8 CY 5XWK $3,909.47
8CY 3XWK $2,345.72 8CY 6XWK $4,691.37
Extra P/U $206.60
Bin Pushout Service
1XWK $76.48 4XWK $306.28
2XWK $153.35 5XWK $382.30
3XWK $229.61 6XWK $459.82
* Pushout service only applies if containers are moved more than 25ft.

Cart Pushout Service per set of 3 carts: Garbage, Recycle, Organic 1XWK $18.09 4XWK $72.30
2XWK $36.15 5XWK $90.38
3XWK $54.23 6XWK $108.45
* Pushout service only applies if containers are moved more than 25ft. Rate includes up to 50ft.

More than 50ft add an additional 10% for each additional 10ft.

Organic Cart Key Service
32 gallon increments $33.35 $85.15
Return Trip Fee $18.03
Special Services $141.97
Steam Clean and Re-Delivery of Bin
(Shall be provided once per year w/o charge)
Furnishing Chains (One Time Only)
Organic Compactor Per Cubic Yard
$61.35
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Commercial/Multi Family Recycle Rate Schedule
City of Cupertino
February 1, 2026
Front Loader Containers

1.5 CY 1XWK $104.26 1.5 CY 4XWK $417.08

1.5 CY 2XWK $208.54 1.5 CY 5XWK $521.34

1.5 CY 3XWK $312.80 1.5 CY 6XWK $625.60
Extra P/U $32.34
2 CY 1XWK $125.14 2 CY 4XWK $500.47
2 CY 2XWK $250.21 2 CY 5XWK $625.60
2 CY 3XWK $375.38 2 CY 6XWK $750.69
Extra P/U $40.40
3 CY 1XWK $166.84 3 CY 4XWK $667.32
3 CY 2XWK $333.65 3 CY 5XWK $834.13
3 CY 3XWK $500.47 3 CY 6XWK $1,000.95
Extra P/U $44.20
4 CY 1XWK $208.54 4 CY 4XWK $834.13
4 CY 2XWK $417.08 4 CY 5XWK $1,042.68
4 CY 3XWK $625.60 4 CY 6XWK $1,251.20
Extra P/U $55.09
6 CY 1XWK $291.95 6 CY 4XWK $1,167.79
6 CY 2XWK $583.90 6 CY 5XWK $1,459.74
6 CY 3XWK $875.82 6 CY 6XWK $1,751.69
Extra P/U $76.68
8 CY 1XWK $375.39 8 CY 4XWK $1,501.42
8 CY 2XWK $750.69 8 CY 5XWK $1,976.78
8CY 3XWK $1,126.09 8CY 6XWK $2,252.15
Extra P/U $99.18
Bin Pushout Service
1XWK $76.48 4XWK $306.28
2XWK $153.35 5XWK $382.30
3XWK $229.61 6XWK $459.82
* Pushout service only applies if containers are moved more than 25ft.

Cart Pushout Service per set of 3 carts: Garbage, Recycle, Organic 1XWK $18.09 4XWK $72.30
2XWK $36.15 5XWK $90.38
3XWK $54.23 6XWK $108.45
* Pushout service only applies if containers are moved more than 25ft. Rate includes up to 50ft.

More than 50ft add an additional 10% for each additional 10ft.

Recycle Cart Key Service
32 gallon increments $16.58 0.050265 $85.15
Special Services $141.97
Steam Clean and Re-Delivery of Bin
(Shall be provided once per year w/o charge)
Furnishing Chains (One Time Only)
Return Trip Fee $18.03
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Debris Box Service Rate Schedule
City of Cupertino
February 1, 2026
Description 16DO 20DO 26DO 30DO 40DO
Allowed Tons 3 4 4 5 6
Base Rates $ 732.02 $ 817.28 $ 1,120.19 $ 1,324.50 $ 1,412.92 Add'l Tons $ 136.17 $ 136.17 $ 136.17 $ 136.17 $ 136.17 Processor Newby Newby Newby Newby Newby
Source Separated Recycling 08DOR 08DOR 08DO 16DOR-40DOR 16DOR-40DOR Clean Dirt
Clean Concrete
Asphalt
Mix rock, dirt &
concrete Clean Wood Sheet Rock
Allowed Tons 6
Regular Haul Rate $ 628.24 $ 628.24 $ 1,092.49 $ 628.24 $ 628.24 Haul Rate Savings $ (35.60) $ (35.60) $ (35.60) $ (35.60) $ (35.60) Reduced Haul Rate $ 620.22 $ 620.22 $ 1,104.85 $ 620.22 $ 620.22 Recycling Process Rate per ton $ 63.54 $ 63.54 Mixed C&D $104.55 Inert (dirt,rock) $73.86
$ 63.54 $ 63.54
Processor Zanker Zanker Zanker Zanker Zanker
*Note: Source Separated Recycling Loads will be charged the regular box rate. If the processor determines the load to be contaminated or mixed C&D the rate will be adjusted up to $104.55 per ton. If the processor determines the load to be clean wood, the rate will be adjusted down to $56.82 per ton. If the processor determines the load to be clean concrete, the rate will be adjusted down to $28.41 per ton.

Other Miscellaneous Rates
Description Code Amount
Daily Rental Rate For Boxes Beyond 7 Days RENT $ 34.81
Weekly Rental Rate For Boxes Beyond 7 Days RENT $ 221.23 Trip Charge For Empty Debris Box/Compactor (No Dump) TRIP $ 131.17 Dry Run, Scheduled Service Bin Empty TRIP $ 262.33
Relocate Container After Initial Delivery RELOC $ 131.17 Same Day Cancelation (No Dump) CANCL $ 87.46
Steam Clean after exchange bring back to yard TRIP $ 262.33 Garbage, Organic, and Recycling Compactor Rates
Description Amount Processor Dirty
Garbage Compactor Rates Per Yard Per Pull $ 61.72 Newby N/A Organic Compactor Rates Per Yard Per Pull $ 61.72 Recology $ 73.89 Mixed Recycling Compactor Rates Per Pull $ 593.93 GW Recovery $ 714.72 Mixed Recycling Compactor Rates Per Ton $ 91.97 GW Recovery $ 125.80 376
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CITY OF CUPERTINO
Agenda Item
25-14151 Agenda Date:
11/18/2025 Agenda #:

10. Subject: Second reading and enactment of an ordinance for Municipal Code Amendments to Title 16, Buildings and Construction, of the Cupertino Municipal Code adopting the California Buildings Standards Code and Fire Code, for consistency with Assembly Bill 130 and making local exceptions as mandated by the State of California.

Conduct the second reading and enact Ordinance No. 25-2278: “An Ordinance of the City Council of the City of Cupertino Amending Chapters 16.02, 16.04, 16.06, 16.10, 16.16, 16.20, 16.24, 16.40, 16.42,

16.54, 16.58, 16.62, 16.64, 16.68 and 16.80 of Title 16 of the Cupertino Municipal Code adopting the California Building, Residential, Electrical, Mechanical, Plumbing, Energy, Wildland-Urban Interface Code, Historical Building Code, Fire, Existing Building Code, Green Building Standards Code, Referenced Standards Code, Uniform Housing Code, and Property Maintenance Code, with certain exceptions, deletions, modifications, additions and amendments.” CITY OF CUPERTINO Page 1 of 1 Printed on 11/12/2025
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COMMUNITY DEVELOPMENT DEPARTMENT

CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3308
CUPERTINO.GOV

CITY COUNCIL STAFF REPORT
November 18, 2025
Subject
Second reading and enactment of an ordinance for Municipal Code Amendments to Title 16, Buildings and Construction, of the Cupertino Municipal Code adopting the California Buildings Standards Code and Fire Code, for consistency with Assembly Bill 130 and making local exceptions as mandated by the State of California.

Recommended Action
Conduct the second reading and enact Ordinance No. 25-2278: “An Ordinance of the City Council of the City of Cupertino Amending Chapters 16.02, 16.04, 16.06, 16.10, 16.16, 16.20,

16.24, 16.40, 16.42, 16.54, 16.58, 16.62, 16.64, 16.68 and 16.80 of Title 16 of the Cupertino Municipal Code adopting the California Building, Residential, Electrical, Mechanical, Plumbing, Energy, Wildland-Urban Interface Code, Historical Building Code, Fire, Existing Building Code, Green Building Standards Code, Referenced Standards Code, Uniform Housing Code, and Property Maintenance Code, with certain exceptions, deletions, modifications, additions and amendments.”
Reasons for Recommendation
On November 4, 2025, the City Council conducted the first reading of Ordinance No. 25-2278 amending Title 16 of the Cupertino Municipal Code to adopt the 2025 California Code of Regulations with local amendments. No changes have been made to the ordinance since the first reading. If the City Council approves the second reading on November 18, 2025, the proposed ordinance will go into January 1, 2026.

Sustainability Impact
The 2025 Green Buildings Standards Code and 2025 Energy Code support Cupertino’s sustainability strategy by increasing requirements in several key areas. These statewide changes, in addition to Cupertino’s locally adopted green building provisions, are important tools to implement the Climate Action Plan 2.0.

Fiscal Impact
No fiscal impact.

City Work Program (CWP) Item/Description
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No.

Council Goal:

Quality of Life, Environmental Sustainability
California Environmental Quality Act
No California Environmental Quality Act impact.
_____________________________________
Prepared by: Sean Hatch, Building Official
Reviewed by: Benjamin Fu, Director of Community Development Floy Andrews, Interim City Attorney
Approved for Submission by: Tina Kapoor, Interim City Manager Attachments:

A – Draft Ordinance amending Title 16 of the Cupertino Municipal Code - Redline B - Draft Ordinance amending Title 16 of the Cupertino Municipal Code - Clean C – Draft Resolution No. 25-092 including Justification and Findings for Local Amendments (Adopted on 11/4/2025)
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1 ATTACHMENT A
ORDINANCE NO. 25-XXX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING CHAPTERS 16.02, 16.04, 16.06, 16.10, 16.16, 16.20, 16.24, 16.40, 16.42, 16.54,

16.58, 16.62, 16.64, 16.68 and 16.80 OF TITLE 16 OF THE CUPERTINO MUNICIPAL

CODE ADOPTING THE CALIFORNIA BUILDING, RESIDENTIAL, ELECTRICAL,

MECHANICAL, PLUMBING, ENERGY, WILDLAND-URBAN INTERFACE CODE,

HISTORICAL BUILDING CODE, FIRE, EXISTING BUILDING CODE, GREEN

BUILDING STANDARDS CODE, REFERENCED STANDARDS CODE, UNIFORM

HOUSING CODE, AND PROPERTY MAINTENANCE CODE, WITH CERTAIN EXCEPTIONS, DELETIONS, MODIFICATIONS, ADDITIONS AND AMENDMENTS.

WHEREAS, pursuant to Sections 17922, 17958, 17958.5, 17958.7, 17958.11, and 18941.5 of the California Health and Safety Code, the City of Cupertino may adopt the provisions of the 2025 California Administrative Code (Part 1 of Title 24), 2025 California Building Code (Part 2 of Title 24, based on the 2024 International Building Code), the 2025 California Residential Code (Part 2.5 of Title 24 based on the 2024 International Residential Code), the 2025 California Electrical Code (Part 3 of Title 24 based on the 2023 National Electrical Code), The 2025 California Mechanical Code (Part 4 of Title 24 based on the 2024 Uniform Mechanical Code), the 2025 California Plumbing Code (Part 5 of Title 24 based on the 2024 Uniform Plumbing Code), the 2025 California Energy Code (Part 6 of Title 24), the 2025 California Wildland-Urban Interface Code (Part 7 of Title 24 based on the 2024 International Wildland-Urban Interface Code), the 2025 California Historical Building Code (Part 8 of Title 24), the 2025 California Fire Code (Part 9 of Title 24 based on the 2024 International Fire Code), the 2025 California Existing Building Code (Part 10 of Title 24 based on the 2024 International Existing Building Code), the 2025 California Green Building Standards Code (Part 11 of Title 24), the 2025 California Referenced Standards Code (Part 12 of Title 24) with certain amendments to those provisions which are reasonably necessary to protect the health, welfare and safety of the citizens of Cupertino because of the local climatic, geological, and topographical conditions; and
WHEREAS, over the years, the City Council made factual findings set forth in respective sections of Chapter 16 of the Cupertino Municipal Code relating to the amendments to the California codes; and
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Ordinance No. 25-XXXX