AB CD E F
Row Cost Category
Previous
Index Value 1
New Index
Value 2
Percent
Change in
Index (COL B -
COL A) / COL A
Component
Weighting 3
Weighted
Percentage
Change
(COL C * COL D) Index Source
1 Labor 26.250 27.040 3.0095% 25.000% 0.75% Note 10
2 Fuel 230.298 299. 30. 751 1577% 5.000% 1.51%
3 Equipment 153.450 156. 2. 743 1460% 20.000% 0.43%
4 Other (Except Material Handling) 288.798 305. 5. 458 7687% 27.000% 1.56% 5 Total Collection Component 77.000% 4.247%
GH I J K L
Row Facilities 4
Prior Period
Tonnage 5
Prior Period
Gate Fees 6
Prior Period
Material
Handling Cost
(COL G * COL
H)
12 Month
Period
Ending
December
Tonnage 7
Gate Fees
Effective
December 8
Estimated
Material
Handling Cost
(COL J * COL K)
6 Refuse [FACILTY NAME] 14,643.4 $75.00 14,643.4 1,098,255 $78.75 1,153,168 7 Recycling [FACILITY NAME] 3,640.1 $90.00 327,609 3,640.1 $94.50 343,989 8 Organics [FACILITY NAME] 7,040.9 $90.00 633,681 7,040.9 $94.50 665,365 9 Unused - - -
10 Totals 25,324 $2,059,545 25,324 $2,162,522
11 Prior Period Index Value (G11 / I11) >> $81.3265 New Index Value (J11 / L11) >> $85.3928
MN O P Q
Row Cost Category
Previous
Index Value
(COL I, ROW
11)
New Index
Value
(COL K, ROW
11)
Percent
Change in
Index
(COL N - COL
M) / COL M
Component
Weighting 3
Weighted
Percentage
Change
12 Material Handling Component 81.3265 85. 5. 3928 0000% 23.00% 1.15%
RS TU V
Row Cost Component
This Period
Percentage
Rate
Adjustment
Allowed
Carry Over
Prior
Period(s)
Total Allowed
Percentage
Rate
Adjustment
(COL R + COL S)
Maximum
5% any Rate
Year
(Next
Period
Carryover)
Total Permitted
Percentage Rate
Adjustment
(COL T - COL U)
13 Collection Component 4.2470%
14 Material Handling Component 1.1500%
15 Total 5.3970% 0.0000% 5.3970% 0.3970% 5.0000%
STEP Five: Calculate the Cost Components Weighting for Future Rate Adjustment Calculation
W X T Z AA
Row Cost Component
Component
Weighting
This Period
Percentage
Change as
Applied to
Rate
Adjustment
Increase in
Cost
Components
(W * X)
Cost
Component
Increased
(W + T)
Cost
Components
Reweighted to
Equal 100% for
Future
Adjustments
16 Labor 25.0000% 0.7524% 0.1881% 25.188% 24.9302%
17 Fuel 5.0000% 1.5079% 0.0754% 5.075% 5.0234%
18 Equipment 20.0000% 0.4292% 0.0858% 20.086% 19.8802%
19 Other (Except Material Handling) 27.0000% 1.5576% 0.4205% 27.421% 27.1398% 20 Material Handling Component 23.0000% 1.1500% 0.2645% 23.265% 23.0263% 21 Total 100.00% 5.40% 1.03% 101.03% 100.00%
STEP TWO: Calculate Material Handling Component Index
STEP ONE: Calculate Collection Component Percentage Change STEP THREE: Calculate Percentage Change in Weighted Material Handling Index STEP FOUR: Calculate the Permitted Percentage Rate Change City of Diamond Bar Solid Waste Services Franchise Agreement
7.2.a
Packet Pg. 581
Exhibit 2A
Rate Adjustment Procedure - SFD Carts
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8) The "Gate Fees" values shall be the most current per ton rate charged at each facility. (9)
(10)
Note: For Contractor owned facilities, Gate fees will be negotiated based on an index for disposal and transportation Equipment: PCU33612-33612-PPI industry data for Heavy duty truck manufacturing, not seasonally adjusted.
Fuel: WPU05522101PPI Commodity data for Fuels and related products and power-Commercial natural gas, not seasonally adjusted.
Rate increases are limited to no more than 5% per year with a carryover allowance for any amount over 5%.
References to Indices are as follows:
For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Prior Period Gate Fee" values shall be the values from previous year's rate application.
All Other: CUURS49ASA0L1EAll items less food and energy in Los Angeles-Long Beach-Anaheim, CA, all urban consumers, not seasonally adjusted.
For Rate Year July 1, 2026 rate adjustment application, the "Previous Index Value" shall be the annual average value of the indices for the year ending December 2025.
The Tonnage for each facility shall be the total tons delivered to the facility for the previous 12 month period ending December 31st.
For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Previous Index Value" shall be the indices values from the previous year's rate adjustment application.
Labor: Driver rates based on labor agreement.
For Rate Year July 1, 2026 rate adjustment application, the "Prior Period Tonnage" values will be set based on Contractor's Proposal.
For Rate Year July 1, 2026 rate adjustment application, the "Prior Period Gate Fee" values will be set based on Contractor's Proposal.
For Rate Year July 1, 2026 rate adjustment application, "Component Weighting" shall be based on Contractor's For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Prior Period Tonnage" values shall be the values from previous year's rate application.
For Subsequent rate adjustment applications beginning with Rate Year July 1, 2027, "Component Weightings" shall be as calculated in COL AA, ROWS 16-20.
The "New Index Value" shall be the annual average value of the indices ending December of the prior year.
Post collection facilities planned for use under this agreement.
City of Diamond Bar Solid Waste Services Franchise Agreement
7.2.a
Packet Pg. 582
Exhibit 2B
Rate Adjustment Procedure - Bins
AB CDE F
Row Index
Previous
Index Value 1
New Index
Value 2
Percent
Change in
Index (COL B -
COL A) / COL A
Component
Weighting 3
Weighted
Percentage
Change
(COL C * COL
D) Index Source
1 Labor 26.250 27.040 3.0095% 25.000% 0.75% Note 10
2 Fuel 230.298 299. 30. 751 1577% 5.000% 1.51%
3 Equipment 153.450 156. 2. 743 1459% 20.000% 0.43%
4 Other (Except Material Handling) 288.798 305. 5. 458 7687% 33.000% 1.90% 5 Total Collection Component 83.000% 4.593%
GH I JK L
Row Facilities 4
Prior Period
Tonnage 5
Prior Period
Gate Fees 6
Prior Period
Material
Handling Cost
(COL G * COL
H)
12 Month
Period
Ending
December
Tonnage 7
Gate Fees
Effective
December 8
Estimated
Material
Handling Cost
(COL J * COL K)
6 Refuse [FACILTY NAME] 7,662.1 $75.00 574,658 6,895.9 $78.75 543,051 7 Recycling [FACILITY NAME] 3,708.4 $90.00 333,756 3,708.4 $94.50 350,444 8 Organics [FACILITY NAME] $90.00 - 766.2 $94.50 72,407 9 Unused - - -
10 Totals 11,371 $908,414 11,371 $965,902
11 Prior Period Index Value (G11 / I11) >> $79.8921ew Index Value (J11 / L11) >> $84.9481 MN OPQ
Row Index
Previous
Index Value
(COL I, ROW
11)
New Index
Value
(COL K, ROW
11)
Percent
Change in
Index
(COL N - COL
M) / COL M
Component
Weighting 3
Weighted
Percentage
Change
12 Material Handling Component 79.8921 84. 6. 9481 3284% 17.00% 1.08%
R S TUV
Row Cost Component
This Period
Percentage
Rate
Adjustment
Allowed
Carry Over
Prior
Period(s)
Total Allowed
Percentage
Rate
Adjustment
(COL R + COL S)
Maximum
5% any Rate
Year
(Next
Period
Carryover)
Total
Permitted
Percentage
Rate
Adjustment
(COL T - COL U)
13 Collection Component 4.5931%
14 Material Handling Component 1.0758%
15 Total 5.6690% 0.0000% 5.6690% 0.6690% 5.0000%
STEP Five: Calculate the Cost Components Weighting for Future Rate Adjustment Calculation
W X T Z AA
Row Cost Component
Component
Weighting
This Period
Percentage
Change as
Applied to
Rate
Adjustment
Increase in
Cost
Components
(W * X)
Cost
Component
Increased
(W + T)
Cost
Components
Reweighted to
Equal 100% for
Future
Adjustments
16 Labor 25.0000% 0.7524% 0.1881% 25.188% 24.8992%
17 Fuel 5.0000% 1.5079% 0.0754% 5.075% 5.0172%
18 Equipment 20.0000% 0.4292% 0.0858% 20.086% 19.8554%
19 Other (Except Material Handling) 33.0000% 1.9037% 0.6282% 33.628% 33.2425% 20 Material Handling Component 17.0000% 1.0758% 0.1829% 17.183% 16.9858% 21 Total 100.00% 5.67% 1.16% 101.16% 100.00%
STEP ONE: Calculate Collection Component Percentage Change STEP TWO: Calculate Material Handling Component Index
STEP THREE: Calculate Percentage Change in Weighted Material Handling Index STEP FOUR: Calculate the Permitted Percentage Rate Change City of Diamond Bar Solid Waste Services Franchise Agreement
7.2.a
Packet Pg. 583
Exhibit 2B
Rate Adjustment Procedure - Bins
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8) The "Gate Fees" values shall be the most current per ton rate charged at each facility. (9)
(10)
For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Previous Index Value" shall be the indices values from the previous year's rate adjustment application.
Note: For Contractor owned facilities, Gate fees will be negotiated based on an index for disposal and transportatio For Rate Year July 1, 2026 rate adjustment application, the "Previous Index Value" shall be the annual average value of the indices for the year ending December 2025.
Labor: Driver rates based on labor agreement.
The "New Index Value" shall be the annual average value of the indices ending December of the prior year.
For Rate Year July 1, 2026 rate adjustment application, "Component Weighting" shall be based on Contractor's For Subsequent rate adjustment applications beginning with Rate Year July 1, 2027, "Component Weightings" shall be as calculated in COL AA, ROWS 16-20.
Post collection facilities planned for use under this agreement.
For Rate Year July 1, 2026 rate adjustment application, the "Prior Period Tonnage" values will be set based on Contractor's Proposal.
For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Prior Period Tonnage" values shall be the values from previous year's rate application.
For Rate Year July 1, 2026 rate adjustment application, the "Prior Period Gate Fee" values will be set based on Contractor's Proposal.
For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Prior Period Gate Fee" values shall be the values from previous year's rate application.
The Tonnage for each facility shall be the total tons delivered to the facility for the previous 12 month period ending December 31st.
Rate increases are limited to no more than 5% per year with a carryover allowance for any amount over 5%.
References to Indices are as follows:
Fuel: WPU05522101PPI Commodity data for Fuels and related products and power-Commercial natural gas, not seasonally adjusted.
Equipment: PCU33612-33612-PPI industry data for Heavy duty truck manufacturing, not seasonally adjusted.
All Other: CUURS49ASA0L1EAll items less food and energy in Los Angeles-Long Beach-Anaheim, CA, all urban consumers, not seasonally adjusted.
City of Diamond Bar Solid Waste Services Franchise Agreement
7.2.a
Packet Pg. 584
Exhibit 2A
Rate Adjustment Procedure - Roll-Offs
A B C D EF
Row Index
Previous
Index Value 1
New Index
Value 2
Percent
Change in
Index (COL B -
COL A) / COL A
Component
Weighting 3
Weighted
Percentage
Change
(COL C * COL
D)
Index
Source
1 Labor 26.250 27.040 3.0095% 30.000% 0.90% Note 5
2 Fuel 230.298 299. 30. 751 1577% 6.000% 1.81%
3 Equipment 153.450 156. 2. 743 1459% 25.000% 0.54%
4 Other (Except Material Handling) 288.798 305. 5. 458 7687% 39.000% 2.25% 5 Total Collection Component 100.000% 5.499%
GH I J K
Row Cost Component
This Period
Percentage
Rate
Adjustment
Allowed Carry
Over Prior
Period(s)
Total Allowed
Percentage
Rate
Adjustment
(COL G + COL
H)
Maximum 5%
any Rate Year
(Next Period
Carryover)
Total
Permitted
Percentage
Rate
Adjustment
(COL I - COL H)
6 Collection Component 5.4986% 0.0000% 5.4986% 0.4986% 5.0000%
LMN O P
Row Cost Component
Component
Weighting
This Period
Percentage
Change as
Applied to Rate
Adjustment
Increase in
Cost
Components
(L * M)
Cost
Component
Increased
(L + N)
Cost
Components
Reweighted to
Equal 100% for
Future
Adjustments
7 Labor 30.0000% 0.9029% 0.2709% 30.271% 29.8556%
8 Fuel 6.0000% 1.8095% 0.1086% 6.109% 6.0248%
9 Equipment 25.0000% 0.5365% 0.1341% 25.134% 24.7893%
10 Other (Except Material Handling) 39.0000% 2.2498% 0.8774% 39.877% 39.3304% 11 Total 100.00% 5.50% 1.39% 101.39% 100.00%
(1)
(2)
(3)
(4)
(5) References to Indices are as follows:
The "New Index Value" shall be the annual average value of the indices ending December of the prior year.
For Rate Year July 1, 2026 rate adjustment application, "Component Weighting" shall be based on Contractor's For Subsequent rate adjustment applications beginning with Rate Year July 1, 2027, "Component Weightings" shall be as calculated in COL P, ROWS 7-10.
Rate increases are limited to no more than 5% per year with a carryover allowance for any amount over 5%.
STEP ONE: Calculate Collection Component Percentage Change STEP TWO: Calculate the Permitted Percentage Rate Change For Rate Year July 1, 2026 rate adjustment application, the "Previous Index Value" shall be the annual average value of the indices for the year ending December 2025.
For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Previous Index Value" shall be the indices values from the previous year's rate adjustment application.
STEP Three: Calculate the Cost Components Weighting for Future Rate Adjustment Calculation Equipment: PCU33612-33612-PPI industry data for Heavy duty truck manufacturing, not seasonally adjusted.
All Other: CUURS49ASA0L1EAll items less food and energy in Los Angeles-Long Beach-Anaheim, CA, all urban consumers, not seasonally adjusted.
Labor: Driver rates based on labor agreement.
Fuel: WPU05522101PPI Commodity data for Fuels and related products and power-Commercial natural gas, not seasonally adjusted.
City of Diamond Bar Solid Waste Services Franchise Agreement
7.2.a
Packet Pg. 585
Exhibit 2D
Rate Adjustment Procedure - COther Rates
AB C D E F G
Row Index
Previous
Index
Value 1
New
Index
Value 2
Percent
Change in
Index (COL B -
COL A) / COL A
Allowed
Carry Over
Prior
Period(s)
Total Allowed
Percentage
Rate
Adjustment
(COL C + COL
D)
Maximum 5%
any Rate
Year
(Next Period
Caryover)
Total
Permitted
Percentage
Rate
Adjustment
(COL E - COL F)
1 CPI 288.798 305.458 5.7687% 0.0000% 5.7687% 0.7687% 5.0000% (1)
(2)
(3)
(4)
STEP ONE: Calculate Percentage Change in Index
For Rate Year July 1, 2026 rate adjustment application, the "Previous Index Value" shall be the annual average value CPI CUURS49ASAL1E for the year ending December 2025.
For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Previous Index Value" shall be the index value from the previous year's rate adjustment application.
The "New Index Value" shall be the annual average value of the CPI CUURS49ASAL1E ending December of the prior year.
Rate increases are limited to no more than 5% per year with a carryover allowance for any amount over 5%.
Index shall be the CPI CUURS49ASA0L1E All items less food and energy in Los Angeles-Long Beach-Anaheim, CA, all urban consumers, not seasonally adjusted.
City of Diamond Bar Solid Waste Services Franchise Agreement
7.2.a
Packet Pg. 586
EXHIBIT 2E
Example CalculaƟon for
Average Annual Change in Published Indices
Fuel Index
The fuel rate adjustment index is calculated using the “average annual change” as demonstrated in the example below, measured for the 12 months ending December prior to the Rate Year anniversary date compared to the 12 months ending December in the previous year. The Bureau of Labor StaƟsƟcs publishes the Producer Price Index for Fuels and Related Products and Power – Natural Gas. In the example below, the average annual index for the 12 months ended December 2022 of 299.7508 is entered in Column B, Row 2, “New Index Value,” of the example rate adjustment formula in Exhibit 2A, and the average annual index for the 12 months ended December 2021 of 230.2982 is entered in Column A, Row 2, “Previous Index Value” in Exhibit 2A. This would have resulted in a 30.1577% increase to the fuel component of rates as calculated in Column C, Row 2 of Exhibit 2A.
PPI Commodity Data
Series Id: WPU05522101
Not Seasonally Adjusted
Series Title: PPI Commodity data for Fuels and related products and power-Commercial natural gas, not seasonally adjusted
Group: Fuels and related products and power
Item: Commercial natural gas, Pacific
Base Date: 199012
Source: hƩps://data.bls.gov/Ɵmeseries/WPU05522101
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual 2013 184.3000 185.4000 183.2000 187.5000 190.8000 189.7000 186.2000 184.3000 181.9000 183.6000 190.3000 189.3000 186.3750 2014 195.0000 202.2000 216.3000 209.1000 206.2000 201.6000 203.1000 197.1000 195.3000 191.4000 193.6000 198.3000 200.7667 2015 196.6000 189.8000 183.1000 175.0000 169.3000 173.6000 173.5000 174.9000 171.0000 170.4000 171.1000 171.1000 176.6167 2016 173.1000 171.4000 164.2000 163.2000 161.4000 161.7000 170.3000 176.5000 176.5000 178.5000 183.4000 184.5000 172.0583 2017 192.1000 190.7000 188.5000 188.8000 188.1000 190.2000 187.4000 187.3000 185.8000 184.8000 190.9000 194.0000 189.0500 2018 193.1000 201.0000 195.8000 190.5000 184.6000 183.7000 185.1000 188.9000 186.1000 185.1000 191.3000 203.0000 190.6833 2019 203.5000 199.7000 198.5000 193.8000 187.0000 186.6000 185.4000 188.5000 184.4000 185.6000 190.9000 193.4000 191.4417 2020 195.1000 191.2000 187.3000 180.7000 178.8000 180.7000 178.5000 181.4000 185.6000 184.8000 200.8000 202.2000 187.2583 2021 206.2000 208.3000 212.7000 213.9000 215.9000 222.1000 223.6250 232.5240 238.5540 254.8440 267.3180 267.6130 230.2982 2022 269.8120 267.5040 265.5180 273.0230 291.6530 317.0510 306.7300 321.1900 330.3090 317.9990 312.2300 323.9900 299.7508 2023 363.911(P) 318.226(P) 284.739(P) 260.845(P)
Percent Change in Index (299.7508 - 230.2982) / 230.2982 30.1577%
7.2.a
Packet Pg. 587
EXHIBIT 2E
Example CalculaƟon for
Average Annual Change in Published Indices
Equipment Index
The PPI rate adjustment index is calculated using the “average annual change” as demonstrated in the example below, measured for the 12 months ending December prior to the Rate Year anniversary date compared to the 12 months ending December in the previous year.
In the example below, the average annual index for the 12 months ended December 2022 of 156.743 is entered in Column B, Row 3, “New Index Value,” of the example rate adjustment formula in Exhibit 2A, and the average annual index for the 12 months ended December 2021 of 153.45 is entered in Column A, Row 3, “Previous Index Value” in Exhibit 2A. This would have resulted in a 2.146% increase to the Other cost category of the rates as calculated in Column C, Row 3 of Exhibit 2A.
PPI Industry Data
Series Id: PCU33612-33612-
Series Title: PPI industry data for Heavy duty truck manufacturing, not seasonally adjusted Industry: Heavy duty truck manufacturing
Product: Heavy duty truck manufacturing
Base Date: 200312
Source: hƩps://data.bls.gov/
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual 2013 136.100 135.600 135.800 135.200 136.000 136.800 136.800 137.000 136.800 138.000 138.500 138.300 136.742 2014 138.800 139.300 139.200 139.100 139.100 139.100 139.400 139.100 139.400 139.600 139.700 139.600 139.283 2015 140.700 141.900 140.900 141.900 141.700 141.700 142.400 142.300 142.400 142.500 142.700 142.900 142.000 2016 144.300 144.200 144.300 144.600 144.800 144.600 144.800 144.600 145.200 145.000 145.200 145.400 144.750 2017 147.800 147.400 147.600 148.200 148.200 147.300 147.700 147.600 147.400 147.000 147.400 147.500 147.592 2018 147.600 148.700 148.500 148.500 148.800 148.800 150.300 149.200 150.300 150.300 150.300 150.300 149.300 2019 150.500 150.500 150.500 150.500 150.500 150.500 151.100 151.100 151.100 151.100 151.100 151.100 150.800 2020 151.800 151.800 151.800 151.800 151.800 151.800 152.600 152.600 152.600 152.700 152.700 152.900 152.242 2021 152.900 153.000 152.900 153.100 153.200 153.400 153.786 153.450 153.786 153.838 154.022 154.022 153.450 2022 154.646 154.701 154.701 154.701 156.845 157.527 157.683 157.546 157.743 158.147 158.232 158.446 156.743 2023 158.594 (P) 159.49(P) 159.491(P) 159.796(P)
Percent Change in Index (156.743 - 153.450) / 153.450 2.146%
7.2.a
Packet Pg. 588
EXHIBIT 2E
Example CalculaƟon for
Average Annual Change in Published Indices
CPI Index
The CPI rate adjustment index is calculated using the “average annual change” as demonstrated in the example below, measured for the 12 months ending December prior to the Rate Year anniversary date compared to the 12 months ending December in the previous year.
In the example below, the average annual index for the 12 months ended December 2022 of 305.458 is entered in Column B, Row 4, “New Index Value,” of the example rate adjustment formula in Exhibit 2A, and the average annual index for the 12 months ended December 2021 of 288.798 is entered in Column A, Row 4, “Previous Index Value” in Exhibit 2A. This would have resulted in a 5.7987% increase to the Other cost category of the rates as calculated in Column C, Row 4 of Exhibit 2A.
CPI for All Urban Consumers (CPI-U)
Series Id: CUURS49ASA0L1E
Not Seasonally Adjusted
Series Title: All items less food and energy in Los Angeles-Long Beach-Anaheim, CA, all urban consumers, not seasonally adjusted
Area: Los Angeles-Long Beach-Anaheim, CA
Item: All items less food and energy
Base Period: 1982-84=100
Source: hƩps://data.bls.gov/Ɵmeseries/CUURS49ASA0L1E
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual 2013 236.321 237.113 236.585 236.908 237.043 236.819 237.591 236.625 237.654 238.825 238.064 237.852 237.283 2014 239.084 240.322 239.908 240.507 240.366 240.460 241.574 240.981 242.016 242.360 241.842 241.491 240.909 2015 242.003 243.957 242.806 244.138 244.800 245.236 245.896 245.394 246.488 247.539 248.120 248.140 245.376 2016 249.652 251.438 251.059 251.672 253.179 253.074 253.775 253.042 253.898 254.388 253.711 253.882 252.731 2017 256.209 257.903 257.518 258.472 258.872 258.924 260.698 260.020 261.277 262.829 262.656 262.960 259.862 2018 264.641 267.434 266.332 267.945 268.532 268.094 268.939 268.484 271.259 271.982 271.552 270.898 268.841 2019 273.579 274.954 273.716 276.185 276.421 277.384 278.131 277.590 278.935 279.732 279.781 278.812 277.102 2020 281.022 280.815 282.124 280.885 281.340 282.329 283.752 283.839 282.712 283.055 283.873 282.907 282.388 2021 282.846 283.389 282.860 286.255 287.323 288.958 290.327 290.279 291.056 292.702 294.154 295.428 288.798 2022 298.501 300.952 299.588 302.803 304.024 306.206 308.463 306.958 309.292 310.310 309.578 308.824 305.458 2023 312.000 313.828 313.159 316.523
Percent Change in Index (305.458 - 288.798) / 288.798 5.7687%
7.2.a
Packet Pg. 589
EXHIBIT 6
CORPORATE GUARANTY
Guaranty
THIS GUARANTY (the “Guaranty) is given as of the ___ day of ___________, 2022.
THIS GUARANTY is made with reference to the following facts and circumstances:
A. ______________________, hereinaŌer (“Owner”) is a _______________________ organized under the laws of the State of ___________, which is wholly owned by _______________________. (Guarantor).
B. Owner and the City have negoƟated an Agreement for CollecƟon, processing, and Disposal of Solid Waste dated as of __________ ____, (hereinaŌer “Agreement”). A copy of this Agreement is aƩached hereto.
C. It is a requirement of the Agreement, and a condiƟon to the City entering into the Agreement, that Guarantor guaranty Owner’s performance of the Agreement.
D. Guarantor is providing this Guaranty to induce the City to enter into the Agreement.
NOW, THEREFORE, in consideraƟon of the foregoing, Guarantor agrees as follows:
1. Guaranty of the Agreement. Guarantor hereby irrevocably and uncondiƟonally guarantees to the City the complete and Ɵmely performance, saƟsfacƟon and observaƟon by Owner of each and every term and condiƟon of the Agreement which Owner is required to perform, saƟsfy or observe. In the event that Owner fails to perform, saƟsfy or observe any of the terms and condiƟons of the Agreement, Guarantor will promptly and fully perform, saƟsfy or observe them in the place of the Owner or cause them to be performed, saƟsfied or observed. Guarantor hereby guarantees payment to the City of any damages, costs or expenses which might become recoverable by the City from Owner due to its breach of the Agreement.
2. Guarantor’s ObligaƟons Are Absolute. The obligaƟons of the Guarantor hereunder are direct, immediate, absolute, conƟnuing, uncondiƟonal and unlimited, and with respect to any payment obligaƟon of Owner under the Agreement, shall consƟtute a guarantee of payment and not of collecƟon, and are not condiƟonal upon the genuineness, validity, regularity or enforceability of the Agreement. In any acƟon brought against the Guarantor to enforce, or for damages for breach of, its obligaƟons hereunder, the Guarantor shall be enƟtled to all defenses, if any, that would be available to the Owner in
7.2.a
Packet Pg. 590
EXHIBIT 6
CORPORATE GUARANTY
an acƟon to enforce, or for damages for breach of, the Agreement (other than discharge of, or stay of proceedings to enforce, obligaƟons under the Agreement under bankruptcy law).
3. Waivers. Except as provided herein the Guarantor shall have no right to terminate this Guaranty or to be released, relieved, exonerated or discharged from its obligaƟons under it for any reason whatsoever, including, without limitaƟon: (1) the insolvency, bankruptcy, reorganizaƟon or cessaƟon of existence of the Owner; (2) the actual or purported rejecƟon by a trustee in bankruptcy of the Agreement, or any limitaƟon on any claim in bankruptcy resulƟng from the actual or purported terminaƟon of the Agreement; (3) any waiver with respect to any of the obligaƟons of the Agreement guaranteed hereunder or the impairment or suspension of any of the City’s rights or remedies against the Owner; or (4) any merger or consolidaƟon of the Owner with any other corporaƟon, or any sale, lease or transfer of any or all the assets of the Owner. Without limiƟng the generality of the foregoing, Guarantor hereby waives the rights and benefits under California Civil Code SecƟon 2819.
The Guarantor hereby waives any and all benefits and defenses under California Civil Code SecƟon 2846, 2849, and 2850, including without limitaƟon, the right to require the City to (a) proceed against Owner, (b) proceed against or exhaust any security or collateral the City may hold now or hereaŌer hold, or (c) pursue any other right or remedy for Guarantor’s benefit, and agrees that the City may proceed against Guarantor for the obligaƟons guaranteed herein without taking any acƟon against Owner or any other guarantor or pledgor and without proceeding against or exhausƟng any security or collateral the City may hold now or hereaŌer hold. City may unqualifiedly exercise in its sole discreƟon any or all rights and remedies available to it against Owner or any other guarantor or pledgor without impairing the City’s rights and remedies in enforcing this Guaranty.
The Guarantor hereby waives and agrees to waive at any future Ɵme at the request of the City to the extent now or then permiƩed by Applicable Law, any and all rights which the Guarantor may have or which at any Ɵme hereaŌer may be conferred upon it, by statute, regulaƟon or otherwise, to avoid any of its obligaƟons under, or to terminate, cancel, quit or surrender this Guaranty. Without limiƟng 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 Ɵme or from Ɵme to Ɵme, without noƟce the Guarantor, performance or compliance herewith is waived; (b) any other of any provision of its Agreement indemnificaƟon with respect to Owner’s obligaƟons under the Agreement or any security
7.2.a
Packet Pg. 591
EXHIBIT 6
CORPORATE GUARANTY
therefore is released or exchanged in whole or in part or otherwise dealt with; or (c) any assignment of the Agreement is effected which does not require the City’s approval.
The Guarantor hereby expressly waives diligence, presentment, demand for payment or performance, protest and all noƟces whatsoever, including, but not limited to, noƟces of non-payment or nonperformance, noƟces of protest, noƟces of any breach or default, and noƟces of acceptance of this Guaranty. If all or any porƟon of the obligaƟons guaranteed hereunder are paid or performed, Guarantor’s obligaƟons hereunder shall conƟnue 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 the City as a preference, fraudulent transfer or otherwise, irrespecƟve of (a) any noƟce of revocaƟon given by Guarantor or Owner prior to such avoidance or recovery, and (b) payment in full of any obligaƟons then outstanding.
4. Term. This Guaranty is not limited to any period of Ɵme, but shall conƟnue in full force and effect unƟl all of the terms and condiƟons of the Agreement have been fully performed or otherwise discharged and Guarantor shall remain fully responsible under this Guaranty without regard to the acceptance by the City of any performance bond or other collateral to assure the performance of Owner’s obligaƟons under the Agreement. Guarantor shall not be released of its obligaƟons hereunder so long as there is any claim by the City against Owner arising out of the Agreement based on Owner’s failure to perform which has not been seƩled or discharged.
5. No Waivers. No delay on the part of the City in exercising any rights under this Guaranty or failure to exercise such rights shall operate as a waiver of such rights. No noƟce to or demand on Guarantor shall be a waiver of any obligaƟon of Guarantor or right of the City to take other or further acƟon without noƟce or demand. No modificaƟon or waiver of any of the provisions of this Guaranty shall be effecƟve unless it is in wriƟng and signed by the City and by Guarantor, nor shall any waiver be effecƟve except in the specific instance or maƩer for which it is given.
6. AƩorney’s Fees. In addiƟon to the amounts guaranteed under this Guaranty, Guarantor agrees in the event of Guaranty’s breach of its obligaƟons to pay reasonable aƩorney’s fees and all other reasonable costs and expenses incurred by the City in enforcing this Guaranty, or in any acƟon or proceeding arising out of or relaƟng to this Guaranty, including any acƟon insƟtuted to determine the respecƟve rights and obligaƟons of the parƟes hereunder.
7.2.a
Packet Pg. 592
EXHIBIT 6
CORPORATE GUARANTY
7. Governing Law: JurisdicƟon. 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, maƩers of construcƟon, validity and performance. Guarantor agrees that any acƟon brought by the City to enforce this Guaranty may be brought in any court of the State of California and Guarantor consents to personal jurisdicƟon over it by such courts. Guarantor appoints the following person as its agents for service of process in California:
___________
___________
___________
___________
With a copy by cerƟfied mail to:
___________
___________
___________
___________
8. Severability. If any porƟon of this Guaranty is held to be invalid or unenforceable, such invalidity will have not have an effect upon the remaining porƟons of this Guaranty, which shall be severable and conƟnue in full force and effect.
9. Binding On Successors. This Guaranty shall inure to the benefit of the City and its successors and shall be binding upon Guarantor and its successors, including transferee(s) of substanƟally all of its assets and its shareholder(s) in the event of its dissoluƟon or insolvency.
10. Authority. Guarantor represents and warrants that it has the corporate power and authority to give this Guaranty, that its execuƟon of this Guaranty has been authorized by all necessary acƟon under its ArƟcle of IncorporaƟon and By-Laws, and that the person signing this Guaranty on its behalf has the authority to do so.
11. NoƟces. NoƟce shall be given in wriƟng, deposited in the U.S. mail, registered or cerƟfied, first class postage prepaid, addressed as follows:
To the City: City Manager
7.2.a
Packet Pg. 593
EXHIBIT 6
CORPORATE GUARANTY
City of Diamond Bar
21810 Copley Driver
Diamond Bar, CA 91765
with a copy to the City Counsel at the same address.
To the Guarantor: ___________
___________
___________
___________
___________
___________
___________
___________
By: ______________________
(Ɵtle)
By: ______________________
(Ɵtle)
7.2.a
Packet Pg. 594
EXHIBIT 7
CONTRACTOR’S FAITHFUL PERFORMANCE BOND
Guaranty
KNOW ALL MEN BY THESE PRESENTS:
That , a California , as PRINCIPAL, and ,
a CorporaƟon organized and doing business by
virtue of the laws of the State of California, and duly licensed for the purpose of making, guaranteeing, or becoming sole surety upon bonds or undertakings required or authorized by the laws of the State of California, as SURETY, are held and firmly bound to City, hereinaŌer called OBLIGEE, in the penal sum of one-hundred twenty-five thousand dollars ($125,000) lawful money of the United States, for the payment of which, well and truly to be made, we and each of us hereby bind ourselves, and our and each of our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.
NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH THAT:
WHEREAS, the above bounden PRINCIPAL has entered into a contract, enƟtled "SOLID WASTE SERVICE FOR THE CITY OF DIAMOND BAR" with City, to do and perform the following work, to wit: Collect, Process and Dispose of Solid Waste generated within City, in accordance with the contract.
NOW, THEREFORE, if the above bounden PRINCIPAL shall well and truly perform, or cause to be performed each and all of the requirements and obligaƟons of said contract to be performed by said PRINCIPAL, as in said contract set forth, then this BOND shall be null and void; otherwise it will remain in full force and effect.
And the said Surety, for value received hereby sƟpulates and agrees that no change, extension of Ɵme, alteraƟon or addiƟon to the terms of the contract or to the work to be performed thereunder or the specificaƟons accompanying the same shall in any wise affect its obligaƟons on this BOND, and it does hereby waive noƟce of any such change, extension of Ɵme, alteraƟon or addiƟon to the terms of the contract or to the work or to the specificaƟons.
7.2.a
Packet Pg. 595
EXHIBIT 7
CONTRACTOR’S FAITHFUL PERFORMANCE BOND
In the event suit is brought by OBLIGEE to enforce the provisions of this bond, said Surety will pay to OBLIGEE a reasonable aƩorney’s fee, plus costs of suit, in an amount to be fixed by the court.
IN WITNESS WHEREOF, said PRINCIPAL and said SURETY have caused these presents to be duly signed and sealed this DAY OF 20 .
a California CorporaƟon SURETY
By: By:
(PRINCIPAL) (ATTORNEY IN FACT)
(SEAL) (SEAL)
7.2.a
Packet Pg. 596
Exhibit 2A
Rate Adjustment Procedure - SFD Carts
AB CD E F
Row Cost Category
Previous
Index Value 1
New Index
Value 2
Percent
Change in
Index (COL B -
COL A) / COL A
Component
Weighting 3
Weighted
Percentage
Change
(COL C * COL D) Index Source
1 Labor 26.250 27.040 3.0095% 25.000% 0.75% Note 10
2 Fuel 230.298 299. 30. 751 1577% 5.000% 1.51%
3 Equipment 153.450 156. 2. 743 1460% 20.000% 0.43%
4 Other (Except Material Handling) 288.798 305. 5. 458 7687% 27.000% 1.56% 5 Total Collection Component 77.000% 4.247%
GH I J K L
Row Facilities 4
Prior Period
Tonnage 5
Prior Period
Gate Fees 6
Prior Period
Material
Handling Cost
(COL G * COL
H)
12 Month
Period
Ending
December
Tonnage 7
Gate Fees
Effective
December 8
Estimated
Material
Handling Cost
(COL J * COL K)
6 Refuse [FACILTY NAME] 14,643.4 $75.00 14,643.4 1,098,255 $78.75 1,153,168 7 Recycling [FACILITY NAME] 3,640.1 $90.00 327,609 3,640.1 $94.50 343,989 8 Organics [FACILITY NAME] 7,040.9 $90.00 633,681 7,040.9 $94.50 665,365 9 Unused - - -
10 Totals 25,324 $2,059,545 25,324 $2,162,522
11 Prior Period Index Value (G11 / I11) >> $81.3265 New Index Value (J11 / L11) >> $85.3928
MN O P Q
Row Cost Category
Previous
Index Value
(COL I, ROW
11)
New Index
Value
(COL K, ROW
11)
Percent
Change in
Index
(COL N - COL
M) / COL M
Component
Weighting 3
Weighted
Percentage
Change
12 Material Handling Component 81.3265 85. 5. 3928 0000% 23.00% 1.15%
RS TU V
Row Cost Component
This Period
Percentage
Rate
Adjustment
Allowed
Carry Over
Prior
Period(s)
Total Allowed
Percentage
Rate
Adjustment
(COL R + COL S)
Maximum
5% any Rate
Year
(Next
Period
Carryover)
Total Permitted
Percentage Rate
Adjustment
(COL T - COL U)
13 Collection Component 4.2470%
14 Material Handling Component 1.1500%
15 Total 5.3970% 0.0000% 5.3970% 0.3970% 5.0000%
W X T Z AA
Row Cost Component
Component
Weighting
This Period
Percentage
Change as
Applied to
Rate
Adjustment
Increase in
Cost
Components
(W * X)
Cost
Component
Increased
(W + T)
Cost
Components
Reweighted to
Equal 100% for
Future
Adjustments
16 Labor 25.0000% 0.7524% 0.1881% 25.188% 24.9302%
17 Fuel 5.0000% 1.5079% 0.0754% 5.075% 5.0234%
18 Equipment 20.0000% 0.4292% 0.0858% 20.086% 19.8802%
19 Other (Except Material Handling) 27.0000% 1.5576% 0.4205% 27.421% 27.1398% 20 Material Handling Component 23.0000% 1.1500% 0.2645% 23.265% 23.0263% 21 Total 100.00% 5.40% 1.03% 101.03% 100.00%
STEP TWO: Calculate Material Handling Component Index
STEP ONE: Calculate Collection Component Percentage Change STEP THREE: Calculate Percentage Change in Weighted Material Handling Index STEP FOUR: Calculate the Permitted Percentage Rate Change STEP FIVE: Calculate the Cost Components Weighting for Future Rate Adjustment Calculation City of Diamond Bar Solid Waste Services Franchise Agreement
7.2.a
Packet Pg. 597
Exhibit 2A
Rate Adjustment Procedure - SFD Carts
AB AC AD AE
Row Rate Category Current Rate
Permitted
Percentage
Change (from
Row 15
Column V)
Rate Increase
or Decrease
(Column AB x
Column AC)
Adjusted
Rate
(Column AB
+ Column
AD)
22 25.00 $ 5.0000% 1.25 26.25 $
23 25.00 $ 5.0000% 1.25 26.25 $
24 25.00 $ 5.0000% 1.25 26.25 $
STEP SIX: Calculate the Adjusted Rate
City of Diamond Bar Solid Waste Services Franchise Agreement
7.2.a
Packet Pg. 598
Exhibit 2A
Rate Adjustment Procedure - SFD Carts
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8) The "Gate Fees" values shall be the most current per ton rate charged at each facility. (9)
(10)
Note: For Contractor owned facilities, Gate fees will be negotiated based on an index for disposal and transportation Equipment: PCU33612-33612-PPI industry data for Heavy duty truck manufacturing, not seasonally adjusted.
Fuel: WPU05522101PPI Commodity data for Fuels and related products and power-Commercial natural gas, not seasonally adjusted.
Rate increases are limited to no more than 5% per year with a carryover allowance for any amount over 5%.
References to Indices are as follows:
For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Prior Period Gate Fee" values shall be the values from previous year's rate application.
All Other: CUURS49ASA0L1EAll items less food and energy in Los Angeles-Long Beach-Anaheim, CA, all urban consumers, not seasonally adjusted.
For Rate Year July 1, 2026 rate adjustment application, the "Previous Index Value" shall be the annual average value of the indices for the year ending December 2025.
The Tonnage for each facility shall be the total tons delivered to the facility for the previous 12 month period ending December 31st.
For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Previous Index Value" shall be the indices values from the previous year's rate adjustment application.
The "New Index Value" shall be the annual average value of the indices ending December of the prior year.
Post collection facilities planned for use under this agreement.
Labor: Driver rates based on labor agreement.
For Rate Year July 1, 2026 rate adjustment application, the "Prior Period Tonnage" values will be set based on Contractor's Proposal.
For Rate Year July 1, 2026 rate adjustment application, the "Prior Period Gate Fee" values will be set based on Contractor's Proposal.
For Rate Year July 1, 2026 rate adjustment application, "Component Weighting" shall be based on Contractor's For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Prior Period Tonnage" values shall be the values from previous year's rate application.
For Subsequent rate adjustment applications beginning with Rate Year July 1, 2027, "Component Weightings" shall be as calculated in COL AA, ROWS 16-20.
City of Diamond Bar Solid Waste Services Franchise Agreement
7.2.a
Packet Pg. 599
Exhibit 2B
Rate Adjustment Procedure - Bins
AB CDE F
Row Index
Previous
Index Value 1
New Index
Value 2
Percent
Change in
Index (COL B -
COL A) / COL A
Component
Weighting 3
Weighted
Percentage
Change
(COL C * COL
D) Index Source
1 Labor 26.250 27.040 3.0095% 25.000% 0.75% Note 10
2 Fuel 230.298 299. 30. 751 1577% 5.000% 1.51%
3 Equipment 153.450 156. 2. 743 1459% 20.000% 0.43%
4 Other (Except Material Handling) 288.798 305. 5. 458 7687% 33.000% 1.90% 5 Total Collection Component 83.000% 4.593%
GH I JK L
Row Facilities 4
Prior Period
Tonnage 5
Prior Period
Gate Fees 6
Prior Period
Material
Handling Cost
(COL G * COL
H)
12 Month
Period
Ending
December
Tonnage 7
Gate Fees
Effective
December 8
Estimated
Material
Handling Cost
(COL J * COL K)
6 Refuse [FACILTY NAME] 7,662.1 $75.00 574,658 6,895.9 $78.75 543,051 7 Recycling [FACILITY NAME] 3,708.4 $90.00 333,756 3,708.4 $94.50 350,444 8 Organics [FACILITY NAME] $90.00 - 766.2 $94.50 72,407 9 Unused - - -
10 Totals 11,371 $908,414 11,371 $965,902
11 Prior Period Index Value (G11 / I11) >> $79.8921ew Index Value (J11 / L11) >> $84.9481 MN OPQ
Row Index
Previous
Index Value
(COL I, ROW
11)
New Index
Value
(COL K, ROW
11)
Percent
Change in
Index
(COL N - COL
M) / COL M
Component
Weighting 3
Weighted
Percentage
Change
12 Material Handling Component 79.8921 84. 6. 9481 3284% 17.00% 1.08%
R S TUV
Row Cost Component
This Period
Percentage
Rate
Adjustment
Allowed
Carry Over
Prior
Period(s)
Total Allowed
Percentage
Rate
Adjustment
(COL R + COL S)
Maximum
5% any Rate
Year
(Next
Period
Carryover)
Total
Permitted
Percentage
Rate
Adjustment
(COL T - COL U)
13 Collection Component 4.5931%
14 Material Handling Component 1.0758%
15 Total 5.6690% 0.0000% 5.6690% 0.6690% 5.0000%
STEP Five: Calculate the Cost Components Weighting for Future Rate Adjustment Calculation
W X T Z AA
Row Cost Component
Component
Weighting
This Period
Percentage
Change as
Applied to
Rate
Adjustment
Increase in
Cost
Components
(W * X)
Cost
Component
Increased
(W + T)
Cost
Components
Reweighted to
Equal 100% for
Future
Adjustments
16 Labor 25.0000% 0.7524% 0.1881% 25.188% 24.8992%
17 Fuel 5.0000% 1.5079% 0.0754% 5.075% 5.0172%
18 Equipment 20.0000% 0.4292% 0.0858% 20.086% 19.8554%
19 Other (Except Material Handling) 33.0000% 1.9037% 0.6282% 33.628% 33.2425% 20 Material Handling Component 17.0000% 1.0758% 0.1829% 17.183% 16.9858% 21 Total 100.00% 5.67% 1.16% 101.16% 100.00%
STEP ONE: Calculate Collection Component Percentage Change STEP TWO: Calculate Material Handling Component Index
STEP THREE: Calculate Percentage Change in Weighted Material Handling Index STEP FOUR: Calculate the Permitted Percentage Rate Change City of Diamond Bar Solid Waste Services Franchise Agreement
7.2.a
Packet Pg. 600
Exhibit 2B
Rate Adjustment Procedure - Bins
AB AC AD AE
Row Rate Category Current Rate
Permitted
Percentage
Change (from
Row 15
Column V)
Rate Increase
or Decrease
(Column AB x
Column AC)
Adjusted
Rate
(Column AB
+ Column
AD)
22 200.00 $ 5.0000% 10.00 $ 210.00
23 200.00 $ 5.0000% 10.00 $ 210.00
24 200.00 $ 5.0000% 10.00 $ 210.00
STEP SIX: Calculate the Adjusted Rate
City of Diamond Bar Solid Waste Services Franchise Agreement
7.2.a
Packet Pg. 601
Exhibit 2B
Rate Adjustment Procedure - Bins
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8) The "Gate Fees" values shall be the most current per ton rate charged at each facility. (9)
(10)
For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Previous Index Value" shall be the indices values from the previous year's rate adjustment application.
Note: For Contractor owned facilities, Gate fees will be negotiated based on an index for disposal and transportatio For Rate Year July 1, 2026 rate adjustment application, the "Previous Index Value" shall be the annual average value of the indices for the year ending December 2025.
Labor: Driver rates based on labor agreement.
The "New Index Value" shall be the annual average value of the indices ending December of the prior year.
For Rate Year July 1, 2026 rate adjustment application, "Component Weighting" shall be based on Contractor's For Subsequent rate adjustment applications beginning with Rate Year July 1, 2027, "Component Weightings" shall be as calculated in COL AA, ROWS 16-20.
Post collection facilities planned for use under this agreement.
For Rate Year July 1, 2026 rate adjustment application, the "Prior Period Tonnage" values will be set based on Contractor's Proposal.
For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Prior Period Tonnage" values shall be the values from previous year's rate application.
For Rate Year July 1, 2026 rate adjustment application, the "Prior Period Gate Fee" values will be set based on Contractor's Proposal.
For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Prior Period Gate Fee" values shall be the values from previous year's rate application.
The Tonnage for each facility shall be the total tons delivered to the facility for the previous 12 month period ending December 31st.
Rate increases are limited to no more than 5% per year with a carryover allowance for any amount over 5%.
References to Indices are as follows:
Fuel: WPU05522101PPI Commodity data for Fuels and related products and power-Commercial natural gas, not seasonally adjusted.
Equipment: PCU33612-33612-PPI industry data for Heavy duty truck manufacturing, not seasonally adjusted.
All Other: CUURS49ASA0L1EAll items less food and energy in Los Angeles-Long Beach-Anaheim, CA, all urban consumers, not seasonally adjusted.
City of Diamond Bar Solid Waste Services Franchise Agreement
7.2.a
Packet Pg. 602
Exhibit 2A
Rate Adjustment Procedure - Roll-Offs
A B C D EF
Row Index
Previous
Index Value 1
New Index
Value 2
Percent
Change in
Index (COL B -
COL A) / COL A
Component
Weighting 3
Weighted
Percentage
Change
(COL C * COL
D)
Index
Source
1 Labor 26.250 27.040 3.0095% 30.000% 0.90% Note 5
2 Fuel 230.298 299. 30. 751 1577% 6.000% 1.81%
3 Equipment 153.450 156. 2. 743 1459% 25.000% 0.54%
4 Other (Except Material Handling) 288.798 305. 5. 458 7687% 39.000% 2.25% 5 Total Collection Component 100.000% 5.499%
GH I J K
Row Cost Component
This Period
Percentage
Rate
Adjustment
Allowed Carry
Over Prior
Period(s)
Total Allowed
Percentage
Rate
Adjustment
(COL G + COL
H)
Maximum 5%
any Rate Year
(Next Period
Carryover)
Total
Permitted
Percentage
Rate
Adjustment
(COL I - COL H)
6 Collection Component 5.4986% 0.0000% 5.4986% 0.4986% 5.0000%
LMN O P
Row Cost Component
Component
Weighting
This Period
Percentage
Change as
Applied to Rate
Adjustment
Increase in
Cost
Components
(L * M)
Cost
Component
Increased
(L + N)
Cost
Components
Reweighted to
Equal 100% for
Future
Adjustments
7 Labor 30.0000% 0.9029% 0.2709% 30.271% 29.8556%
8 Fuel 6.0000% 1.8095% 0.1086% 6.109% 6.0248%
9 Equipment 25.0000% 0.5365% 0.1341% 25.134% 24.7893%
10 Other (Except Material Handling) 39.0000% 2.2498% 0.8774% 39.877% 39.3304% 11 Total 100.00% 5.50% 1.39% 101.39% 100.00%
QR S T
Row Rate Category Current Rate
Total Weighted
Percentage
Change (from
Row 6 Column
K)
Rate Increase
or Decrease
(Column Q x
Column R)
Adjusted Rate
(Column Q +
Column S)
12 225.00 $ 5.0000% 11.25 $ 236.25
13 225.00 $ 5.0000% 11.25 $ 236.25
14 225.00 $ 5.0000% 11.25 $ 236.25
(1)
(2)
(3)
The "New Index Value" shall be the annual average value of the indices ending December of the prior year.
For Rate Year July 1, 2026 rate adjustment application, "Component Weighting" shall be based on Contractor's For Subsequent rate adjustment applications beginning with Rate Year July 1, 2027, "Component Weightings" shall be as calculated in COL P, ROWS 7-10.
STEP ONE: Calculate Collection Component Percentage Change STEP TWO: Calculate the Permitted Percentage Rate Change For Rate Year July 1, 2026 rate adjustment application, the "Previous Index Value" shall be the annual average value of the indices for the year ending December 2025.
For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Previous Index Value" shall be the indices values from the previous year's rate adjustment application.
STEP THREE: Calculate the Cost Components Weighting for Future Rate Adjustment Calculation STEP FOUR: Calculate the Adjusted Rate
City of Diamond Bar Solid Waste Services Franchise Agreement
7.2.a
Packet Pg. 603
Exhibit 2A
Rate Adjustment Procedure - Roll-Offs
(4)
(5) References to Indices are as follows:
Rate increases are limited to no more than 5% per year with a carryover allowance for any amount over 5%.
Equipment: PCU33612-33612-PPI industry data for Heavy duty truck manufacturing, not seasonally adjusted.
All Other: CUURS49ASA0L1EAll items less food and energy in Los Angeles-Long Beach-Anaheim, CA, all urban consumers, not seasonally adjusted.
Labor: Driver rates based on labor agreement.
Fuel: WPU05522101PPI Commodity data for Fuels and related products and power-Commercial natural gas, not seasonally adjusted.
City of Diamond Bar Solid Waste Services Franchise Agreement
7.2.a
Packet Pg. 604
Exhibit 2D
Rate Adjustment Procedure - COther Rates
AB C D E F G
Row Index
Previous
Index
Value 1
New
Index
Value 2
Percent
Change in
Index (COL B -
COL A) / COL A
Allowed
Carry Over
Prior
Period(s)
Total Allowed
Percentage
Rate
Adjustment
(COL C + COL
D)
Maximum 5%
any Rate
Year
(Next Period
Caryover)
Total
Permitted
Percentage
Rate
Adjustment
(COL E - COL F)
1 CPI 288.798 305.458 5.7687% 0.0000% 5.7687% 0.7687% 5.0000% (1)
(2)
(3)
(4)
STEP ONE: Calculate Percentage Change in Index
For Rate Year July 1, 2026 rate adjustment application, the "Previous Index Value" shall be the annual average value CPI CUURS49ASAL1E for the year ending December 2025.
For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Previous Index Value" shall be the index value from the previous year's rate adjustment application.
The "New Index Value" shall be the annual average value of the CPI CUURS49ASAL1E ending December of the prior year.
Rate increases are limited to no more than 5% per year with a carryover allowance for any amount over 5%.
Index shall be the CPI CUURS49ASA0L1E All items less food and energy in Los Angeles-Long Beach-Anaheim, CA, all urban consumers, not seasonally adjusted.
City of Diamond Bar Solid Waste Services Franchise Agreement
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Subject: Diamond Bar Addendum #2
From: Enrique Vazquez <[email protected]>
Date: 7/20/2023, 5:35 PM
To: "Quiroa, Lily" <[email protected]>, David Perez <[email protected]>, Jesse Quintana <[email protected]>
CC: 'Alfa Lopez' <[email protected]>
Lily Quiroa,
David Perez,
AƩached is Addendum #2 consisƟng of responses to quesƟons submiƩed as of July 10, 2023.
Please acknowledge receipt.
Best regards,
--
Enrique Vazquez
Sloan Vazquez McAfee
626-347-3226
www.sloanvazquez.com
AƩachments:
DB RFP Addendum #2.pdf 377 KB
AƩachment A..pdf 1.0 MB
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REQUEST FOR PROPOSALS
FOR
SOLID WASTE SERVICES
ADDENDUM #2
Issued by
Prepared by:
3002 Dow Avenue, Suite 116, Tustin, CA 92780
Office: 866.241.4533
[email protected] · www.sloanvazquez.com
Contact: Enrique Vazquez
[email protected]
626-347-3226
July 20, 2023
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City of Diamond Bar, California Addendum #2
RFP for Solid Waste Services July 20, 2023 Page 2
This addendum #2 to the RFP for Solid Waste Services consists of answers to questions submitted by proposers as of July 10, 2023, the deadline to submit questions. Note that the City has attempted to provide all information available by answering these questions.
For questions that consisted primarily of requests to modify the language of the draft agreement, you are reminded that the process is to submit substitute language with your proposals for the City’s consideration. This step in the process is for questions and answers and not for negotiating.
Negotiations will be limited to sections identified by proposers and for which substitute language is provided.
For questions with a response of “Under Review”, the City will attempt to respond to these prior to the proposal due date but is not obligated to do so. Proposers are reminded to prepare their proposal without further answers to the questions already provided. And also include these questions in your proposals along with substitute language.
Although the deadline to submit questions has expired, you are welcome to contact Enrique Vazquez through [email protected] or at 626-347-3226 with any technical questions regarding the worksheets. Also, if there are questions that arise during the preparation of the proposals, you may submit additional questions and every attempt will be made to respond to them. However, there is no guarantee that further questions will be answered. Proposer must continue the preparation of their proposals with the information provided thus far.
RESPONSES TO QUESTIONS
Question #1:
There is subscription service for Commercial but there is none for Residential. Just confirming that Attachment 6 Residential service count is accurate. Need senior subscription information.
Response:
Proposers are to use the residential service subscription counts that are included in Attachment 6 Form
2.1 SFD. These service counts will be used to estimate the total revenue requirement of each proposal.
The City does not have a breakdown of cart size for the 3,425 senior subscription count. For the purpose of this RFP, it will be assumed that the 3,425 senior subscriptions are for 64-Gallon cart size.
Note: Footnote #1 incorrectly states 3,325 senior discounted accounts. This should be 3,425.
The subscription counts for commercial service included in Attachment 6 Form 2.2 Commercial Rates represent the best-known subscription information available to the City. Each proposer must provide their own projection of subscription levels based on their own assumptions used for the preparation of their own proposal.
As stated in the RFP, each proposer should take whatever steps it believes are necessary to determine the actual service requirements of the City and understand service conditions when preparing a proposal.
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Question #2:
Please clarify why there are two rates. Additionally, there does not appear to be counts for 2A.? Response:
Rate schedule Exhibit 2A is transitional and will not be required at the start of the new agreement.
Please note that under the new agreement rates for muti-family of five or less units with cart service will be equivalent to the SFD rates and rates for multi-family dwellings of more than five will be equivalent to the Commercial cart rates. The 2023/24 rate schedule for both residential and commercial services is included at Attachment A.
Question #3:
Regarding Curbside Used Oil and Oil Filter Collection and Door-to-Door HHW.
Handling hazardous materials of both types is not recommended especially oil in containers that may break and spill onto public property. HHW is also not recommended. Residents can be given free HHW cleanup event information sponsored by the County of Los Angeles.
In the event City still requests this service, what collection history is available for this service? Response:
The City is requesting Door-to-Door HHW Service, Curbside Used Oil and Filter Collection, and assistance to the City in increasing awareness of Household Hazardous Waste events by promoting the Los Angeles County Household Hazardous Waste collections held in Diamond Bar.
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The following data was provided by the existing hauler for 2022.
Waste Oil: 16 gallons
Oil Filters: Zero
At Your Door Program: 0.73 tons of trash; 9.35 Tons Recycled E-Waste 16.6 Tons
Question #4:
Regarding the CalRecycle Compliance Fee, there may be an uneven allocation of this amount. Not sure if there is a forecasted level of activity in each sector to allocated this cost.
CALRECYCLE Compliance Fee: Contractor shall pay to the City a CalRecycle Compliance Fee of SevenHundred Fifty Thousand Dollars ($750,000) adjusted annually as described in draft Agreement Section
9.2 and 9.7. The CalRecycle Compliance Fee amount represents a reasonable allocation of the City’s budgeted costs to comply with State mandates resulting from the enactment of AB 939 and subsequent related legislation including, but not limited to: AB 2176 (Chapter 879, Statutes of 2004), SB 1016 (Chapter 343, Statutes of 2008), AB 341 (Chapter 476, Statutes of 2011), AB 1826 (Chapter 727, Statutes of 2014), and SB 1383 (Chapter 395, Statutes of 2016) which require jurisdictions to implement solids waste Collection programs, meet Processing facility requirements, conduct contamination monitoring, provide education, maintain records, submit reports, monitor compliance, conduct enforcement, and fulfill other requirements. Should the City issue separate franchises for Residential and Commercial services, each franchisee shall pay a minimum CalRecycle fee of Three-Hundred Seventy-Five Thousand Dollars ($375,000).
Response:
The AB 939 Fee were allocated based on historical proportionate payments of AB 939 Fees by the haulers.
Question #5:
Regarding the Bin Pushout Service, there needs to be a distance limit.
Response:
Proposer must prepare their proposal based on the requirements specified in the RFP. Proposers may submit alternative proposals for the City’s consideration, however the City is under no obligation to review or consider any alternative proposal submitted.
Question #6:
Previous says no additional charge.
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Regarding charges for additional services, the Contractor’s proposed rate schedule shall include all charges for special services, including but not limited to:
x Additional carts.
x Scout service.
x Locking bins.
x Pulling or pushing containers to a collection vehicle. x Steam cleaning containers (excluding carts) more frequently than one time per year as requested by the customer.
x Additional bulky item collection services.
Response:
Pulling or pushing containers to a collection vehicle shall be provided at no additional charge. Proposers may offer rates for any ancillary services that are not specifically listed or disallowed in the RFP or the draft agreement.
Question #7:
Regarding rate adjustments procedures, the labor category assumes there is a Labor Agreement such as with unions. Need to modify for non union.
Response:
Noted.
Question #8:
Draft Agreement call for a ten year contract with a 24 month extension. Would the City consider a 5 year extension or a rolling term? With the additional investment required for regulation(s) compliance most contracts awarded in the Southern California area are acknowledging that challenge and opting for longer terms or longer and multiple extensions.
Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
Question #9:
RFP states: When language differs between the RFP Sections and the draft agreement (Attachment 1), please confirm that the language of the draft agreement prevails.
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Response:
For clarification, the statement in RFP Section 1, Page 1 which states, “If there are differences between this RFP and the Agreement, the terms and conditions in the Agreement shall prevail” was intended to mean differences between the RFP and the final agreement. Should proposers find differences or during the proposal preparation process, those should be identified for further clarification.
Question #10:
Will the City please revise Attachment 6 to the RFP (for all three lines of business) to limit the disclosure requirements of the Rate Proposal Forms or clarify that proposers are not required to provide any information that contains protected intellectual property, confidential information, or proprietary information? The information requested in Attachment 6 to the RFP (for each line of business) includes information that is unrelated to this RFP or the services, as well as protected proprietary information. By way of example only, the information requested includes profit assumptions, direct and indirect wage and compensation related to Contractor’s employees, costs and expenses related rent, utilities, telephone, information technology, office supplies, bad debt, accounting, legal, public outreach, and payments to the City (other than franchise fees). The requested information is excessive and is not typically requested in an RFP bidding process and does not have bearing on responses by proposers.
Response:
The information requested is specifically related to the proposed services requested in the RFP. It is common for this information to be requested and based on SVM’s experience managing solid waste procurement for municipalities, this is information has always been provided. Personal information is not being requested. For Equipment R&M and allocated costs, proposers may enter lump sums instead of itemizing each cost. The cost information is needed to evaluate the reasonability of the rate proposal.
Question #11:
Agreement Section 1.1, Section 14.5, Section 14.6. Will the City revise these sections to permit an assignment by Contractor to an affiliate having the same corporate parent entity? Transfer of Contractor’s obligations to a subsidiary or sister company will have no effect on the quality or timing of services provided.
Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
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Question #12:
Section 1.30. Will the City please add Excluded Waste to the definition of Container Contamination for clarity? This section includes “non-Solid Waste items” but doesn’t specify that Excluded Waste is prohibited.
Response:
The City is agreeable to adding Excluded Waste. Nevertheless, please provide proposed substitute language as required under Section 5 of the RFP.
Question #13:
Section 1.59. As drafted the definition of Organic Waste is overly broad and includes material that is not acceptable for processing by the applicable facilities. In addition, some of the products defined here are treated as solid waste (e.g. organic textiles and carpets) or recyclables (e.g. paper products, and printing and writing paper). Will the City revise this section accordingly or confirm that it will discuss reasonable revision to this definition in negotiations to correctly allocate these items into their proper definitions? Response:
The intent is to ensure compliance with AB 341, AB 1826, and SB 1383. Proposers may describe their services and list the materials that will be included or excluded from the program. The final agreement will be modified to reflect the programs described by the successful hauler.
Question #14:
Section 1.65. This definition is unclear and includes three total definitions: a contract definition (Exhibit 4) and conflicting statutory definitions. Will the City please revise this definition to state that Recyclables are just those items included in Exhibit 4 for clarity and consistency.
Response:
The intent is to ensure compliance with AB 341, AB 1826, and SB 1383. Proposers may describe their services and list the materials that will be included or excluded from the program. The final agreement will be modified to reflect the programs described by the successful hauler.
Question #15:
Section 1.74. This definition is similar but not identical to the definition in Public Resources Code Section 40191 or Municipal Code Section 8.16.020. Will the City please revise to align this definition with applicable law?
Response:
Under review.
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Question #16:
Section 2.1. Will the City please revise this section to state: “Contractor agrees to and shall timely take all actions that are reasonably necessary to defend the validity and enforceability of this Agreement and shall pay all costs related to such defense in accordance with Section 11.1.” for consistency with the indemnity provisions of this Agreement?
Response:
Under review.
Question #17:
Section 2.5. Will the City revise this section to provide for extension of the term upon written agreement with the Contractor? Unilateral extension rights do not permit Contractor to meet and confer with the City to discuss or account for circumstances on the ground that may warrant amendment to the agreement and places an undue and burden on Contractor.
Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
Question #18:
Section 2.7. As written, this section includes prospective and on-going obligations of Contractor, which by definition cannot be conditions precedent to effectiveness of the Agreement. Because these prospective and on-going obligations are addressed in subsequent sections of the agreement, will the City permit revision to this section during negotiations to remove such prospective and on-going obligations?
Response:
Under review.
Question #19:
Section 2.9(A). Sold or donated Organic Waste should not be exempted from the franchise because unlike recyclables it is a putrescible waste and not a commodity, and therefore is subject to the solid waste laws and regulations. In addition, opening the door to exempting Organic Waste from the scope of franchise agreements will lead to conflicts with the diversion goals, indemnity obligations, and potentially SB 1383 requirements including reporting, for example. As such, will the City remove this organics exemption?
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Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
Question #20:
Section 2.10. As drafted, this section suggests that Section 2.10.2 and Section 2.10.3 provide a rate adjustment mechanism for City directed changes. However, these sections do not provide for an adjustment mechanism, only certain circumstances under which adjustments are made. Will the City please revise this section to clarify how adjustments will be made, or in the alternative, permit revision to the agreement during negotiations to clarify how such adjustments are made? Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
Question #21:
Section 3.2.13. Will the City please clarify whether the give-a-way is intended to be of mulch (as in the Agreement), or of compost (as on p. 7 of the May 3, 2023 version of the RFP), or some combination of both? The type of recovered organic waste product has different cost implications.
Response:
The Draft Franchise Agreement is correct. This requirement is for a mulch give-away.
The City is required to procure 4,537 tons of recovered organic waste annually through December 31, 2026. The City can meet its procurement requirement by contracting with the hauler that uses or gives away organic end products on the City’s behalf. To this end, proposer may offer compost give-away service. The mulch give-away requirement may be combined with any proposed assistance to the City with procuring recovered organic waste products as addressed in RFP Section 3.8.
Question #22:
Section 3.4. Will the City provide a historical breakdown of estimated annual hauls and tons by material type for temporary and permanent Roll-Off Box customers? Form 2.3 appears to ask for this differential pricing and appears to be in conflict with this section.
Response:
The City does not have the annual hauls and tons by material for temporary and permanent roll-off box customers. PLEASE NOTE: Only provide the proposed rates in Column B. Service assumptions for
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Column D in Form 2.3 Roll-Off Rates are no longer required. Roll-Off and On-Call services will be evaluated on a per unit prices basis. Roll-Off and On-call services revenue will not be used to evaluate total revenue requirement. Accordingly, sections that request cost information for Roll-Off and On-Call services do not need to be filled in.
Row 1 in Form 2.3 Roll-Off Rates is requesting rates for both permanent and temporary services. Row 2 is requesting the same for customer owned equipment (roll-off boxes, compactors).
Question #23:
Will the City consider differentiating fees for open top vs. compactor Roll-Off Box services, as the latter require additional service time?
Response:
Proposer must prepare their rate proposal based on the term specified in the RFP. Proposers may propose alternative proposals for the City’s consideration, however the City is under no obligation to consider or review any alternative proposal submitted.
Question #24:
Section 3.6. Will the City clarify that for Bulky Item Pickups that exceed the four Bulky Item limit for each pick up, Contractor may charge the applicable fee on the approved rate schedule? Will the City clarify that the cubic yards measure of Bulky Items (as on p. 6 of the May 3, 2023 version of the RFP) is specific only to bundled yard waste products? The RFP and Section 3.6 of the agreement appear to conflict as to the amount of acceptable Bulky Items, as some Bulky Items cannot be easily quantified by volume.
Response:
Contractor may charge a per item fee for each bulky item that exceeds four for each pickup. Contract may also charge a per event fee for each pickup event that exceeds four in a [calendar] year. Each event over four includes four items at the same rate.
The reference in the RFP allowing customers to put out up to 3 cubic yards of material may be removed.
It was intended to refer to Refuse Cart Overage requirement in page 5 of the RFP and in Section 3.2.3 in the Draft Agreement.
Question #25:
Section 3.7.1. Will the City provide a list of current and potential City locations to be serviced under this Agreement?
Will the City please revise this section to provide that the parties will meet and confer once every two years to assess the scope of services provided at City Facilities, and any appropriate rate adjustments
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related to increased services at those facilities? As written, this section is unrestricted as to the amount of service and the number of facilities, which is unduly burdensome on the Contractor.
Response:
The list of facilities was provided with RFP as Attachment 5. This requirement is standard in Franchise agreements in California.
Question #26:
Section 3.7.2. Will the City please revise this section to clarify that Contractor shall provide services under this Section for only events organized and staffed by the City, and that City-sponsored events, organized and staffed by third parties, are excluded from this section and shall receive service from Contractor in accordance with Section 3.7.6?
Will the City agree to a set maximum number of events on an annual basis? As written, this section is unrestricted as to the number of events which creates an undue burden on the Contractor. In the alternative, will the City revise this section to permit rate adjustments for changes to the scope of services or addition of events serviced by Contractor under this section? Will the City clarify whether Organics Carts and Bins provided by Contractor will be primarily intended for and used exclusively by vendors under this section? Containers at public events are often extremely contaminated resulting in significant costs to remediate.
Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
Question #27:
Section 3.7.6. Will the City clarify that recycling services provided under this section to Large Venues are provided under separate agreements? This section is unclear as drafted.
Response:
Under review.
Question #28:
Section 4.1.6(A) and (B). Will the City please change the period of overage incidents from a six-month period to a rolling twelve-month period? A rolling twelve-month period results in more consistent monitoring and correction of behavior.
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Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
Question #29:
Section 4.1.12. Will the City please revise this section to clarify that nothing in this section requires Contractor to provide any confidential information, proprietary information, or protected intellectual property of Contractor?
Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
Question #30:
Section 4.1.13. Will the City please replace instances of “Hazardous Material” with “Excluded Waste” (as defined in Section 1.43)? Excluded Waste is the appropriate defined term to use in this section.
Response:
Agreed. Please include in proposal as substitute language.
Question #31:
Section 5.1. Will the City please revise this Section to clarify that Contractor will cooperate with the City in any audits or investigation of such quantities “in accordance with the terms of this Agreement”? Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
Question #32:
Section 5.3. Will the City revise this section to remove the obligation that Contractor disclose the revenue generated from Recyclables? Where Recyclables are sold, and for how much, is protected proprietary information.
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Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
Question #33:
Section 6.2.5. Will the City revise this section to clarify that disputes may be resolved reasonably by the City? In addition, will the City make the second paragraph mutual regarding the Contractor’s rights or remedies in any dispute with a third party? It is foreseeable that Contractor may have claims against third parties that cannot be contractually limited.
Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
Question #34:
Section 8.1. Will the City revise this section to state that Contractor shall conduct the data collection, information and recordkeeping, and reporting activities under this Agreement and as required by Applicable Law in its performance of obligations under this Agreement? As written, this section is vague and confusing and is so generalized it makes it impossible for Contractor to determine, and ultimately perform, its obligations under Article 8.
Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
Question #35:
Section 8.2 and Section 8.3. The scope of financial records required to be disclosed under these sections, particularly Section 8.2.2 and Section 8.3.4, is too broad and requires disclosure of confidential information, proprietary information, and protected intellectual property. Please revise this section, or confirm that the City is willing to discuss language during negotiations, to limit the scope of records, to provide for review but not possession by the City of confidential or proprietary information, and to include protections for Contractor’s confidential information, proprietary information, and protected intellectual property.
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Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
Question #36:
Section 8.2.7. Will the City remove the 90-day limitation for undercharges? This is unnecessarily punitive to Contractor where we are billing on a quarterly basis.
Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
Question #37:
Section 8.3.2(G). This section requires additional reporting above and beyond what is required by the Agreement or by CalRecycle. Will the City add language that the additional reports must be “readily available and related to Contractor’s performance of this Agreement”? In addition, will the City add language that Contractor is entitled to compensation for preparing reports that may be reasonably required but contain information or data not readily available to Contractor from records it is required to maintain under this Agreement? Preparation of additional reports requires substantial investment of Contractor’s resources to prepare.
Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
Question #38:
Section 8.3.3(G). Will the City revise this section to clarify that RNG, as defined under SB 1383, is not available for commercial use in the City, but may be utilized by Contractor at such time as it becomes commercially available in the City?
Response:
The RFP does not require the use of RNG vehicles (Refer to Addendum #1 RFP section Collection Vehicle Requirements page 11. Section 8.3.3(G) is a reporting requirement only If there something to report.
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Question #39:
Section 8.4. Will the City revise this section to limit this section only to those reports, pleadings, applications, notifications, Notice of Violation, communications, or other material relating to Contractor’s performance of services under this Agreement that would limit or prohibit Contractor’s performance of this Agreement? As written this section is too broad and includes all routine and ordinary communications to such agencies that otherwise have no bearing on Contractor’s performance under this Agreement.
Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
Question #40:
Section 10.3. Will the City please revise this Section to state that any excess adjustment that has not yet been applied to the rate in the final year of the Term will be implemented in the final rate year? In addition, will the City clarify that should any CPI adjustment result in a negative rate adjustment, the adjustment for that year shall be 0%, and any negative adjustment will be rolled over to be applied to the subsequent year?
Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
Question #41:
Section 10.5. Will the City please revise this Section to state that if Contractor provides reasonable support and justification in its request for an extraordinary rate adjustment the City will not unreasonably deny the request?
Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
Question #42:
Section 11.1.1, Section 11.1.3, and Section 11.3.
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Will the City revise these sections to permit Contractor to select counsel for its indemnity obligations under the Agreement? As the party defending claims under these sections, it is paramount that the Contractor is able to choose its counsel provided such counsel is reasonably acceptable to the City.
Further, the City has the right to choose its separate counsel under Section 11.3 if it would like to participate in the defense of any claim, so it is appropriate that Contractor be able to appoint counsel its counsel.
Will the City please revise this section to clarify that Contractor’s indemnity obligations are limited to the extent permitted by Applicable Law, including without limitation, Public Resources Code Section 40059.1?
Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
Question #43:
Section 11.1.2.A. Will the City please revise this section to clarify as follows:
…that arise out of or are alleged to arise out of or in any way relate to any action, inaction or omission of Contractor in its performance under this Agreement that:…” It is appropriate to clarify the scope of the indemnity under this section to Contractor’s performance under the Agreement.
Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
Question #44:
Section 11.1.3. Will the City revise this section to remove the first sentence regarding unconditional guarantees of compliance with the requirements of AB 939? It is not possible for any proposer to make this guarantee as written, as the agreement contemplates circumstances where performance under the agreement might be excused, such as Section 13.8.
Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
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Question #45:
Section 11.6. Will the City revise this section to remove the requirement that Subcontractors meet the insurance requirements under the Agreement, as Subcontractors are unlikely to be able to meet these requirements. Subcontractors will also have insurance, but it is unlikely to be in the amounts required by the City in Article 11.
Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
Question #46:
Section 11.8. Will the City permit reasonable and mutually agreeable changes to the insurance provisions of this Agreement during negotiations to align the requirements with the policies held by proposers?
Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
Question #47:
Section 12.1. Will the City discuss reasonable revisions to Section 12.1 during negotiations with proposers? As written, this section is too broad and extremely burdensome on proposers—it is not reasonable, practical, or possible from a liability perspective for the City to take possession Contractor’s equipment and property, require Contractor to maintain all such equipment and property, and employee Contractor’s employees to perform the services if the Contractor is not able to perform as contemplated by this Section. It is more reasonable to revise this section to state that in the event that the City reasonably determines that the accumulation of waste endangers or menaces public health, safety, or welfare, the City may contract with a third-party to perform the services until such time as Contractor is able resume performance. The remaining sections of this Article must be revised to align with changes made to Section 12.1.
Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
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City of Diamond Bar, California Addendum #2
RFP for Solid Waste Services July 20, 2023 Page 18
Question #48:
Section 13.1. Will the City discuss reasonable revisions to this Section during negotiations to remove duplicative events of default and clarify ambiguous standards of performance? Many of the events of default listed in this section are co-extensive with each other, leading to confusion and ambiguity about which standard applies.
Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
Question #49
Section 13.2. Will the City revise this section to state that, for events that cannot reasonably be cured in ten (10) Business Days or thirty (30) calendar days, as applicable, will be resolved in a reasonable time as agreed by the parties? Some events of default may not be reasonably able to resolve in the time prescribed and flexibility in this regard benefits both Contractor and the City.
Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
Question #50:
Section 13.5. In addition to the revisions in Section 8.2 and Section 8.3, this section explicitly requires Contractor to provide proprietary information to the City, which is unreasonable and unacceptable.
Please revise this section or confirm that the City is willing to discuss reasonable revision to this section during negotiations to clarify that Contractor shall provide immediate access to non-confidential, nonproprietary business records it is required to maintain under this Agreement. Contractor is not able to provide to or put in the City’s possession confidential information, proprietary information, or protected intellectual property.
Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
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RFP for Solid Waste Services July 20, 2023 Page 19
Question #51:
Section 13.7. Will the City please provide its basis for the amounts detailed in Section 13.7 and detail how the City determined these amounts were a reasonable estimate of damages for the alleged failure? Further, some damages listed in this section are determinable at the time of assessment and therefore cannot be liquidated damages by definition, making them unlawful penalties. Other penalties are unduly burdensome on Contractor or do not cite to particular sections of the Agreement so they are ambiguous as to the standards and obligations required to comply. Will the City permit mutually agreeable revisions to this Section during negotiations to resolve these issues? Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
Question #52:
Section 13.8.1. Will the City revise the language below as follows:
The interruption or discontinuance of Contractor' s services caused by one (1) or more of the events excused shall not constitute a default by Contractor under this Agreement provided that other services in Diamond Bar (such as and without limitation electricity, gas, water, public transportation (including bus, tram, or train service), or Solid Waste Services) have been similarly disrupted as a direct result of the catastrophic event.
It is reasonable and foreseeable that a Force Majeure event contemplated by this Section would impact only solid waste services but would not impact other services delivered to properties in the City that are delivered by pipe or by cable, such as electricity, gas, or water. Rather, public transportation, which relies on the use of drivers and surface streets, is a much closer analog and is a more appropriate comparison. In the alternative, please remove the language above entirely.
Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
Question #53:
Section 13.8.2. Will the City revise this section to state that Contractor will provide a contingency plan within fourteen (14) days of an event of labor unrest? Because the contingency plan depends on the facts and circumstances of the event of labor unrest, it is not practical to provide a contingency plan in advance of the event of labor unrest.
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City of Diamond Bar, California Addendum #2
RFP for Solid Waste Services July 20, 2023 Page 20
Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
Question #54:
Section 14.9.
This provision, as drafted, conflicts with applicable data security and privacy laws, such as the California Consumer Privacy Act’s protection of certain information and laws protecting trade secrets and business proprietary information. Will the City add language to this section clarifying that: (1) nothing in this Section requires Contractor to provide to the next contractor any confidential information, proprietary information, or trade secrets, which are otherwise protected under the Agreement; and (2) that any such transfer must comply with applicable laws, including, but not limited to, laws regarding data security and privacy laws?
Will the City remove the language requiring the Contractor to provide security codes used to access garages and Bin enclosures? Customers, not Contractor, provide means of access.
Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
Question #55:
Section 14.18. Consistent with Section 8.2 and Section 8.3, the scope of financial records required to be disclosed under this Agreement is unreasonably broad and requires disclosure of confidential information, proprietary information, and protected intellectual property. Please revise this section, or confirm that the City is willing to discuss language during negotiations to limit the scope of records, to provide for review but not possession of confidential or proprietary information, and to include the following language which is typical for provisions of this type:
Notwithstanding anything to the contrary, Contractor acknowledges that City is legally obligated to comply with the California Public Records Act (“CPRA”). City acknowledges that Contractor may consider certain records, reports, or information contained therein, which Contractor is required to provide to City under this Agreement, to be of a proprietary or confidential nature. In such instances, Contractor will inform City in writing of which records are considered propriety or confidential. At such time as City receives a request for records under the CPRA or Federal Freedom of Information Act or a subpoena or other court order requesting disclosure of records that are marked or identified by Contractor as proprietary or confidential, City shall notify Contractor of the request, subpoena or order and of City’s obligation and intent to provide a response within 10 days. Contractor shall within five days either: (i)
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City of Diamond Bar, California Addendum #2
RFP for Solid Waste Services July 20, 2023 Page 21
consent in writing to the disclosure of the records; or (ii) seek and obtain, at Contractor’s sole cost and expense, the order of a court of competent jurisdiction staying or enjoining the disclosure of the records.
Response:
As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language.
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City of Diamond Bar
DŽŶƚŚůLJŽůůĞĐƟŽŶZĂƚĞƐ
ZĞƐŝĚĞŶƟĂů ZĂƚĞƐƉƉƌŽǀĞĚĨŽƌ:ƵůLJϭ͕ϮϬϮϯ-:ƵŶĞϯϬ͕ϮϬϮ4 1 | Page
Container Size Monthly
ZĂƚĞ
Standard service with 35-gallon refuse cart $31.09
Standard service with 64-gallon refuse cart $38.31
Standard service with 96-gallon refuse cart $45.96
Senior service with 35-gallon refuse cart $26.76
Senior service with 64-gallon refuse cart $33.03
Senior service with 96-gallon refuse cart $39.40
Multi Family (MF) Standard service with 35-gallon refuse cart $29.07 MF Standard service with 64-gallon refuse cart $35.82
MF Standard service with 96-gallon refuse cart $42.98
MF Senior service with 35-gallon refuse cart $25.02
MF Senior service with 64-gallon refuse cart $30.89
MF Senior service with 96-gallon refuse cart $36.84
Additional 35-gallon refuse cart $8.56
Additional 64-gallon refuse cart $12.83
Additional 96-gallon refuse cart $17.15
Additional Recycling Cart (beyond 2 carts) $2.40
Additional Green Waste Cart (beyond 1 cart) $6.06
Backyard Service Surcharge $28.40
Yard Waste Reduction Discount $4.12
Additional Special Overage Pickup >2 per year $11.56
Additional Bulky Item Pickup > allowed free $43.34
Cart Exchange (after free exchange period) $21.69
Emergency Service rates - 1 crew & 1 Trk / HR $122.85
Addendum #2 ATTACHMENT A
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City of Diamond Bar
DŽŶƚŚůLJŽůůĞĐƟŽŶZĂƚĞƐ
ZĞƐŝĚĞŶƟĂů ZĂƚĞƐƉƉƌŽǀĞĚĨŽƌ:ƵůLJϭ͕ϮϬϮϯ-:ƵŶĞϯϬ͕ϮϬϮ4 2 | Page
DƵůƚŝĨĂŵŝůLJZĂƚĞdĂďůĞƐǁŝƚŚŽƵƚKƌŐĂŶŝĐ^ĞƌǀŝĐĞƐ Monthly ZĂƚĞ
Container Size
Multi Family Standard service with 35-gallon refuse cart $27.39 MF Standard service with 64-gallon refuse cart $33.75
MF Standard service with 96-gallon refuse cart $40.49
MF Senior service with 35-gallon refuse cart $23.57
MF Senior service with 64-gallon refuse cart $29.10
MF Senior service with 96-gallon refuse cart $34.71
Addendum #2 ATTACHMENT A
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City of Diamond Bar
DŽŶƚŚůLJŽůůĞĐƟŽŶZĂƚĞƐ
ZĞƐŝĚĞŶƟĂů ZĂƚĞƐƉƉƌŽǀĞĚĨŽƌ:ƵůLJϭ͕ϮϬϮϯ-:ƵŶĞϯϬ͕ϮϬϮ4 3 | Page
ZŽůů-ŽĨĨŽdžŚĂƌŐĞƐ ZĂƚĞ
Standard Roll-Off Box - Rate per pull (including container rental) 12 to 16 yard $278.52
25 to 30 yard $267.73
40 to 45 yard $259.18
Compactor Roll-Off Box – Rate per pull (excluding compactor rental) 30 yard $413.91
40 yard $462.28
Container Rental Fee – for use in Excess of 7 days without being serviced $33.09 Processing Per Ton $86.73
Temporary Roll-Off Box, 40 yard – rate includes container rental, pull and disposal up to 6 tons
$739.29
Temporary Roll-Off Box, Low Boy – rate includes container rental, pull, and disposal up to 6 tons
$784.18
Roll-Off Box Cleaning (above one per year) $150.33
Redelivery/Return Trip Fee/Dry runs – roll-off box $194.66 Addendum #2 ATTACHMENT A
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DŽŶƚŚůLJŽůůĞĐƟŽŶZĂƚĞƐ
ŽŵŵĞƌĐŝĂůZĂƚĞƐApproved for July 1, 2023-June 30, 2024 1 | Page
Container Size WŝĐŬƵƉƐƉĞƌǁĞĞŬ
1 2 3 4 5 6 Extra
Empty
1.5 Cubic Yard $116.93 $192.17
extra bin (2) $105.24 $172.95
2 Cubic Yard $133.92 $232.18 $317.41 $410.76 $509.06 $594.29 $51.12 extra bin (2) $120.51 $208.95 $285.68 $369.70 $458.16 $534.85 3 Cubic Yard $165.80 $274.87 $385.95 $501.08 $614.18 $749.59 $59.20 extra bin (2) $149.21 $247.35 $347.36 $450.96 $552.78 $674.64 4 Cubic Yard $209.91 $337.83 $468.66 $667.48 $798.32 $969.71 $67.31 extra bin (2) $188.90 $304.04 $421.77 $600.72 $718.50 $872.75 6 Cubic Yard $250.56 $413.90 $579.35 $842.02 $1,005.40 $1,214.53 $78.18 extra bin (2) $225.50 $372.52 $521.41 $757.84 $904.86 $1,093.09 Organics Cart $49.88 $99.74 $149.62 $199.49 $249.37 $299.24 Recycling – 96 gal. $21.89
Recycling – 1.5 yd. $49.75 $79.23
Recycling – 2 yd. $57.11 $95.78 $127.10 $163.98 $202.70 $235.81 Recycling – 3 yd. $82.92 $127.82 $178.40 $231.03 $282.66 $345.54 Scout Service (3) $83.81 $199.69 $299.54 $399.39 $499.23 $599.07 ŝŶŚĂƌŐĞƐ ZĂƚĞ
Temporary Bin – 3
cubic yard
$166.77 pull
Temporary Bin – 6
cubic yard
$205.99 pull
Bin Cleaning (over
one per year)
$67.15
Locking Bin, per
bin per month
$14.56
Redelivery/Return
Trip Fee
$129.93
Addendum #2 ATTACHMENT A
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City of Diamond Bar
DŽŶƚŚůLJŽůůĞĐƟŽŶZĂƚĞƐ
ŽŵŵĞƌĐŝĂůZĂƚĞƐApproved for July 1, 2023-June 30, 2024 2 | Page
ZŽůů-off Box
ŚĂƌŐĞƐ
ZŽůů-ŽĨĨŽdžŚĂƌŐĞƐ ZĂƚĞ
Standard Roll-Off Box - Rate per pull (including container rental) 12 to 16 yard $278.52
25 to 30 yard $267.73
40 to 45 yard $259.18
Compactor Roll-Off Box – Rate per pull (excluding compactor rental) 30 yard $413.91
40 yard $462.28
Container Rental Fee – for use in Excess of 7 days without being serviced $33.09 Processing Per Ton $86.73
Temporary Roll-Off Box, 40 yard – rate includes container rental, pull and disposal up to 6 tons
$739.29
Temporary Roll-Off Box, Low Boy – rate includes container rental, pull, and disposal up to 6 tons
$784.18
Roll-Off Box Cleaning (above one per year) $150.33
Redelivery/Return Trip Fee/Dry runs – roll-off box $194.66 ĚĚŝƚŝŽŶĂů^ĞƌǀŝĐĞŚĂƌŐĞƐ ZĂƚĞ
Per
Service
Multi-Family Bulky Item Pickup – each pickup above four per year of up to four items. (per item)
$40.42
Emergency Service Rates – one crew and one collection truck (per hour) $114.47 Addendum #2 ATTACHMENT A
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REQUEST FOR PROPOSALS
FOR
SOLID WASTE SERVICES
ADDENDUM #3
Issued by
Prepared by:
3002 Dow Avenue, Suite 116, Tustin, CA 92780
Office: 866.241.4533
[email protected] · www.sloanvazquez.com
Contact: Enrique Vazquez
[email protected]
626-347-3226
July 31, 2023
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City of Diamond Bar, California Addendum #3
RFP for Solid Waste Services July 31, 2023 Page 2
This addendum #3 to the RFP for Solid Waste Services consists of answers to questions submitted by proposers since the release of addendum #2 on July 20, 2023.
To date, the following items have been distributed to proposers.
1. RFP: May 3, 2023
2. Notification #1: May 15, 2023
3. Addendum #1: July 12, 2023
4. Addendum #2: July 20, 2023
5. Addendum #3: July 31, 2023
Reminder: Proposers must acknowledge receipt of all addenda in their proposals. This can be done in the cover letter.
You may continue to send technical questions regarding the worksheets to [email protected] or by calling Enrique Vazquez at 626-347-3226. Also, if there are questions that arise during the preparation of the proposals, you may submit additional questions and every attempt will be made to respond to them. However, there is no guarantee that further questions will be answered. Proposer must continue the preparation of their proposals with the information provided thus far.
RESPONSES TO QUESTIONS
Question #1:
I see the new res rates on the addendum. Do these effectively replace the RFP #’s or are they still transitional rates? There’s a big jump. I take it this includes full organics program rates?
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City of Diamond Bar, California Addendum #3
RFP for Solid Waste Services July 31, 2023 Page 3
RFP…
Response:
The rates entered into the worksheets reflected the approved rates at the time the RFP was prepared and were entered into the worksheets to serve as an example of how to use the worksheet.
The addendum #2 provided the most current approved rates to inform you of the most recent approved rates.
Proposers should enter their proposed rates into the worksheets.
There are no programmed transitional adjustments. All future adjustments to existing agreements will be based on the procedures in the agreements.
Question #2:
Are we allowed to submit one bid package and just break out Citywide, Com, and SFD? Or do we need a separate bid package for each?
Response:
You may submit proposals for
1) Commercial only (Fill in Attachment 6 Commercial Forms), 2) Residential only, (Fill in Attachment 6 Residential, or 3) Both residential and commercial (Fill in Attachment 6 Citywide).
If you submit option 3, you don't have to submit option 1 and 2.
Question #3:
In Form 2.2 for recycling, the non-red cells are marked at 50% of trash rate, the red cells do not have a formula. Is this correct?
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City of Diamond Bar, California Addendum #3
RFP for Solid Waste Services July 31, 2023 Page 4
Red cells in organics are not formula driven…the others are referencing the trash rates values.
Didn’t want to touch the aqua cells.
Response:
Commercial recycling container rates shall not exceed 50% of the rate proposed for the equivalent container size and frequency for trash collection.
In Form 2.2, the recycling container rates beginning in row 19 shall not exceed 50% of the rate proposed for the equivalent container size and frequency proposed for trash collection in rows 1 through 12. If proposer is offering less than 50% than the rate proposed for trash collection, then enter the proposed rate directly into the cell. Otherwise, either enter 50% of proposed trash rate or enter formula that calculates 50% of the equivalent rate in rows 1 through 12.
Organics container rates shall not exceed the rate proposed for the equivalent container size and frequency for trash collection.
In Form 2.2, the organic container rates beginning in row 28 shall not exceed the rate proposed for the equivalent container size and frequency proposed for Trash collection in rows 1 through 12. If proposer is offering less than the rate proposed for trash collection, then enter the proposed rate directly into the cell. Otherwise, either enter rate equal to the proposed trash rate or enter formula the calculates 100% of the proposed trash rates entered in rows 1 through 12.
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City of Diamond Bar
REQUEST FOR PROPOSALS FOR
SOLID WASTE SERVICES
Final Report
Evaluation and Scoring of Proposals
Prepared by:
Municipal Solid Waste & Recycling Advisors
3002 Dow Avenue Suite 116
Tustin, CA 92780
Office: 714.348.6350
Fax: 714.276.0625
www.sloanvazquez.com
November 30, 2023
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City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page ii
TABLE OF CONTENTS
1. OVERVIEW.............................................................................................................................................1
1.1 RFP Goals.............................................................................................................................................2 Process Goals: Integrity, Competition, and Industry-Standard Contract Terms ..................................2 A. Program Goals: Quality, High-Value Programs.............................................................................2 B. State Diversion Requirements......................................................................................................2
1.2 Participating Proposers.......................................................................................................................3
2. EVALUATION PROCESS..........................................................................................................................3
2.1 Evaluation Criteria...............................................................................................................................4 Responsiveness (Pass/Fail)....................................................................................................................5 Proposer’s Qualifications......................................................................................................................5 Technical Qualifications........................................................................................................................5 Number And Materiality of Exceptions to the Agreement...................................................................6 Financial ................................................................................................................................................6 Rate Proposal........................................................................................................................................6
3. FINDINGS...............................................................................................................................................7
3.1 Evaluation Scores................................................................................................................................7
3.2 Overview of Revenue Requirement and Proposed Rates...................................................................7
3.3 City Fees..............................................................................................................................................9
4. PROPOSED RATES................................................................................................................................10
4.1 Residential Rates...............................................................................................................................10
4.2 Commercial Rates.............................................................................................................................10
5. PROPOSAL EVALUATION.....................................................................................................................11
5.1 Summary of Proposer Evaluation Highlights ....................................................................................11 VVS ......................................................................................................................................................12 Waste Management ...........................................................................................................................12
5.2 Overview of Analysis for each Evaluation Criterion..........................................................................13 Proposer’s Qualifications....................................................................................................................13 Technical Qualifications......................................................................................................................15
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Number and Materiality of Exceptions to Agreement .......................................................................18 Financial ..............................................................................................................................................19
6. RATE PROPOSAL EVALUATION............................................................................................................20
6.1 Rate Proposal Competitiveness........................................................................................................21
6.2 Rate Proposal Reasonableness.........................................................................................................22
6.3 Combined Rate Proposal Rating .......................................................................................................23
TABLE OF TABLES
Table 1: Proposer Combination Options.......................................................................................................4 Table 2: Evaluation Criteria and Maximum Evaluation Score.......................................................................4 Table 3: Option Evaluation Score..................................................................................................................7 Table 4: Total Rate Revenue Requirement by Proposal ...............................................................................8 Table 5: Revenue Requirement by Option....................................................................................................9 Table 6: Annual City Fees by Sector..............................................................................................................9 Table 7: Proposed Residential Rates...........................................................................................................10 Table 8: Proposed Commercial Rates ........................................................................................................11 Table 9: Proposer Staffing Overviews.........................................................................................................14 Table 10: Proposed Facilities ......................................................................................................................18 Table 11: Proposed Capital Investment......................................................................................................19 Table 12: Proposed Collection Vehicles......................................................................................................20 Table 13: Revenue Requirement Comptitiveness Rating ...........................................................................21 Table 14: Revenue Requirement Reasonableness Rating ..........................................................................23 Table 15: Combined Rate Proposal Rating..................................................................................................23
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City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page 1
1. OVERVIEW
On May 3, 2023, The City of Diamond Bar released a Request for Proposals (RFP) to solicit proposals for solid waste services from Valley Vista Services (VVS) and Waste Management, Inc. (WM). By issuing the RFP for solid waste services, the City sought to competitively procure franchised solid waste services.
A draft solid waste services franchise agreement (Agreement) was included with the RFP that provides definitions, contract terms, and conditions, including a complete description of the services to be provided.
Currently, solid waste services are provided under a Residential Cart Customer Franchise Agreement with WM and a Commercial Bin and Roll-Off Box Franchise Agreement with VVS.
WM provides collection services to residential premises that receive residential collection using carts and for temporary roll-off box and temporary bin collection service for cleanup or construction work performed at residential customers to whom WM provides collection service using carts. Temporary collection service for the construction of new residences, and all work on commercial premises, and residential premises that receive collection service using bins, are excluded from WM’s franchise agreement.
VVS provides collection services to commercial premises and all residential premises that receive collection using bins and including temporary bin and temporary roll-off box collection service with the exclusion of residential premises that receive collection service using carts.
VVS and WM were exclusively invited to present a proposal to provide solid waste service to their respective service area under the existing franchise agreements as well as a proposal to provide Citywide solid waste services including residential, commercial, and permanent roll-off and on-call services.
The City reserves the right to invite additional proposers prior to making a final decision in the selection of a contractor or contractors should the City determine that proposals received from VVS and WM are inadequate to meet the City desired goals.
The City is seeking service provider(s) who can deliver efficient service while meeting the recycling diversion targets set by the City and all requirements of State mandates. The successful contractor will be required to execute a franchise agreement with the City. The franchise agreement will be based on the Draft Agreement included with the RFP and may be modified to reflect the final negotiated terms and conditions of service. (e.g., the optional programs selected; agreed upon exceptions to the draft agreement, etc.). Services under the new agreement will commence on September 1, 2025, unless otherwise agreed upon.
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City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page 2
1.1 RFP Goals
As part of the development of the RFP, the City established key process and program goals. These goals reflect the priorities and expectations of the City for the implementation of the RFP process, and the City’s goals and objectives for future collection services.
Process Goals: Integrity, Competition, and Industry-Standard Contract Terms • Conduct the RFP process with integrity and transparency. • Stimulate competition among proposing companies.
• Set high performance standards.
• Ensure value for ratepayers.
• Enter contract with fair terms and conditions.
The City’s approach has been conducted with integrity and transparency. The RFP has resulted in the submission of competitive proposals with several alternative proposals.
A. Program Goals: Quality, High-Value Programs
• Consistent, reliable, and quality service
• Efficient service delivery that provides a strong value to the ratepayers • Responsive customer service system
• Well-planned and professionally executed transition to any new programs and services. • Quality outreach and education
B. State Diversion Requirements
A program goal of special note is the City’s desire to procure effective diversion programs to ensure compliance with regulatory requirements. The impact of the new State Law cannot be understated. SB 1383, targeting short-lived climate pollutants, includes numerous new requirements. The regulations are highly prescriptive, with many detailed requirements. To ensure compliance with the requirements, the state sets penalties on jurisdictions, haulers, and waste generators, ranging from $50/violation to $10,000/day. The legislation explicitly affirms that funding from the State is not required and therefore implementation will require new revenues and will have rate impacts.
The City required proposers to include the programs and services necessary to meet the new requirements associated with SB 1383, as well as existing mandates. These requirements include the collection of organics (green waste and food waste) from residential, multi-family and commercial businesses; extensive outreach, education, documentation and reporting requirements; and program monitoring activities to evaluate effective program participation (I.e. does the amount of trash contaminating organics exceed the allowed levels).
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City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page 3
1.2 Participating Proposers
Proposers were invited to submit three separate rate proposals: 1) for residential sector only, 2) for commercial sector services only, and 3) for both the residential and commercial sectors or citywide services. Both VVS and WM submitted proposals on the established due date of August 30, 2023.
WM submitted the three separate rate proposals and in addition submitted an alternative rate proposal for residential only and an alternative for citywide services. VVS submitted a citywide rate proposal and clarified that their proposal included consideration for a residential only and a commercial only option.
The alternative proposals will not be evaluated at this time, however, should the City opt to negotiate with WM, the alternative proposal will then be evaluated for consideration.
The following is a brief description of each company.
Valley Vista Services (VVS): VVS is a privately held company owned and operated by the Perez family. Based in City of Industry, CA., VVS was formally incorporated in 1957 but has been in business since 1957 when Manuel Perez procured his first truck and established City of Industry Disposal. VVS cited five jurisdictions to which it currently provides solid waste services under franchise agreements. The Perez family also owns and operates Grand Central Recycling, Inc. (GCR), a separate corporate entity that serves as a transfer station and material recovery facility.
Waste Management (WM): WM with corporate headquarters in Houston, TX, is North America’s largest waste hauler and recycling processor. WM also maintains a local headquarters in Baldwin Park, CA. The company has provided similar services to more than 100 jurisdictions in Southern California for over 40 years. Nationwide, WM’s 43,000 employees serve more than 21 million customers throughout the U.S. and Canada. WM has been providing collection services in the City of Diamond Bars for over thirty years.
2. EVALUATION PROCESS
Currently, WM provides solid wastes collection services only to the residential sector and VVS only to the commercial sector.
By requesting for separate proposals for services to the residential sector only, the commercial sector only, and for citywide services from each proposer, this procurement process allows for the continuation of the current arrangement, that is, WM continues providing services to the residential sector and VVS to the commercial sector. But it also allows for reversing this arrangement with VVS providing services to the residential sector and WM to the commercial sector, or for granting an exclusive, citywide franchise to a single contractor. As a result, there are four Options for the City to select from resulting from the four possible combinations between VVS’s and WM’s proposals.
As listed in Table 1, Option 1 represents the current configuration, that is WM providing services only to the residential sector and VVS only to the commercial sector. Option 2 swaps the service sectors so that VVS provides services only to the residential sector and WM only to the commercial sector only. Under
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Option 3, WM would provide citywide services under an exclusive franchise agreement. And under Option 4, VVS would provide citywide services under an exclusive franchise agreement.
Table 1: Proposer Combination Options
Sector WM VVS
OPTION 1 (Current) Residential Only Commercial Only
OPTION 2 Commercial Only Residential Only
OPTION 3 Citywide n/a
OPTION 4 n/a Citywide
2.1 Evaluation Criteria
The evaluators consisting of Enrique Vazquez and other Sloan Vazquez McAfee (SVM) staff (the Evaluation Team) conducted an analysis and evaluation of the four Options based on the proposals submitted by each company on August, 2023 and other information submitted by proposers in response to requests by the Evaluation Team.
The Evaluation Team reviewed and scored each Option based on a 1,000-point scale using the evaluation criteria set forth in the RFP and the percentage weighting listed in Table 2.
Table 2: Evaluation Criteria and Maximum Evaluation Score Technical Proposal Evaluation Criteria Weighting Available Points Responsiveness to RFP Pass/Fail n/a
Proposer’s Qualifications and Experience 5.0% 50
Technical Qualifications 30.0% 300
Financial Resources 10.0% 100
Rate Proposal 50.0% 500
Exceptions to the Draft Agreement 5.0% 50
TOTAL 100.0% 1,000
Note: n/a = not applicable
The evaluation criteria, maximum score and scoring results are presented in Table 3. The six categories and their corresponding subcategories are described below.
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Responsiveness (Pass/Fail)
Proposer must be fully compliant with the RFP and procurement procedures as demonstrated by submittal of all elements required by Sections 3 and 5 of this RFP; full completion of all rate proposal forms; compliance with process guidelines presented in Section 4; and adherence to the code of conduct signed by the proposer.
Proposer’s Qualifications
• Collection Experience. Demonstrated experience of company providing the requested or similar services to other jurisdictions. If the proposer is a joint venture, demonstrated experience of parties working together.
• Jurisdiction Satisfaction. Satisfaction of proposer references with services received, including but not limited to, implementation, customer services, reporting, assistance developing diversion programs, and working cooperatively with City staff. • Management and Customer Service Systems. Demonstrated capabilities of the company’s existing management and customer service systems’ abilities to track and monitor contract compliance, quality of collection service, and call center responsiveness. • Key Personnel Qualifications. Extent and relevance of the qualifications and experience of key personnel proposed for the transition team and on-going management of collection operations.
Technical Qualifications
• Implementation Plan. Reasonableness of implementation schedule and ability to meet deadlines (e.g., reasonableness of equipment procurement schedules, implementation staffing levels, public education program, itemized steps for initiation, roll out and maintenance of diversion programs in all service sectors throughout the City, container/cart distribution, new corporation or maintenance yard development, contingency plans, etc. o Customer Service. Customer service approach, staffing levels, and City-specific training programs.
o Billing System. Billing approach and procedures for handling customer billing activities. o Collection Approach. Reasonableness and reliability of the proposed collection methods (e.g., technology, equipment, and containers); reasonableness of productivity and operating assumptions (i.e., number of routes, route drivers, route hours, stops per route, and other operating statistics), if applicable; and reasonableness of assumptions. • AB 341, AB 1826, and SB 1383 Implementation Plan. Completeness of proposed services, public education program, roll out and maintenance of diversion programs in all service sectors throughout the City, container/cart distribution.
• Diversion Outreach and Education Programs. The nature, reliability, and innovation of proposed diversion programs and potential of such programs to divert solid waste from landfill disposal and meet diversion requirements. Compatibility of the proposed education program, staffing level, and program ideas with the needs of the City; and, the quality of public education samples relative to other proposers. Likelihood of diversion programs to meet State-mandated outreach City of Diamond Bar, California Section 6. Proposal Evaluation RFP for Solid Waste
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Services May 3, 2023 Page 32 and education, diversion monitoring and reporting and performance measurement requirements.
• Proposed Operations Facilities. Plan for providing the facilities needed for equipment storage and parking, maintenance, and administration. Level of assurance provided, if any, about site acquisition and timely development of necessary facilities if not proposing an existing, operational and permitted facility.
• Proposed Disposal, Transfer, and Processing Facilities. Reasonableness and reliability of the proposed facilities for disposal, transfer, and processing of solid waste, recyclable materials, and organic materials, including documentation of existing facility permitting/approvals and/or guarantee of sufficient capacity for tonnage from the City service area, and the reasonableness of proposed material transport plans.
Number And Materiality of Exceptions to the Agreement
The number, nature, and materiality of suggested changes to the Agreement will be considered in evaluating proposals.
Financial
• Financial Stability. Financial stability of proposer based on its financial ratios and other financial considerations.
• Insurance. Demonstrated ability of proposer to obtain adequate insurance.
Rate Proposal
• Reasonableness of Rate Proposals. The logical relationship between proposed rates and operational assumptions.
• Competitiveness of Rate Proposals. The competitiveness of the overall revenue requirement is evaluated relative to other proposals.
Evaluators allocated points on a percentage basis after reading, analyzing, and, if necessary, clarifying the responses of each proposer in each of the evaluation sub-categories. The scores assigned to each of the proposals reflect the extent to which the company fulfilled the requirements of the evaluation criteria and the extent to which each criterion was fulfilled relative to other proposals. For example, except for the “Rate Proposal” category, the response that evaluators deemed to be the most thorough, complete, responsive, and/or effective was awarded the highest rating of 100%. Then, the remaining proposals were scored based upon the evaluator’s determination of divergence (decline) from the best rated response. Several factors were measured in each evaluation category. In some cases, responses were deemed to be equal and were allotted the same scores.
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3. FINDINGS
3.1 Evaluation Scores
The evaluation scores for each Option are presented in Table 3. Additional descriptions and analysis of the Options provided in Sections 4 and 5. Based on this evaluation, Option 4-WM Citywide scored the highest with 952 points out of 1,000. Option 2-VVS Resi/WM Comm came in second with 947 points out of 1,000. Option 3 and 1 came in third and fourth, respectively.
Table 3: Option Evaluation Score
Technical Proposal Evaluation
Criteria
Available
Points
Option 1
WM-RESI
VVS-COMM
Option 2
VVS-RESI
WM-COM
Option 3
VVS
CITYWIDE
Option 4
WM
CITYWIDE
Responsiveness to RFP n/a Pass Pass Pass Pass
Proposer’s Qualifications and
Experience 50 49 49 50 48
Technical Qualifications 300 299 300 300 299
Financial Resources 100 90 90 80 100
Rate Proposal 500 440 460 453 460
Exceptions to the Draft Agreement 50 48 48 50 45
TOTAL 1,000 926 947 933 952
Ranking 4 2 3 1
3.2 Overview of Revenue Requirement and Proposed Rates
This section includes an overview of revenue requirements for each proposal and for each option or arrangement of residential, commercial, or citywide services between VVS and WM. A comprehensive analysis of proposed rates is provided in Section 4, and a description of the analysis of the rate proposal and revenue requirement is provided in Section 6.
The total revenue requirement by proposer for each proposal is provided in Table 4. Also included are the rate revenue1 under the current franchise agreements, and comparisons of each rate proposal with the adjusted current rate revenue. Prior to the implementation of the new agreement contemplated with this RFP process, the current rates will be subject to an annual rate adjustment scheduled to take effect July 1, 2024. To allow for a more realistic comparison, the current rates have been adjusted by a 1 Current rate revenue is based on current service rates and subscription levels as reported by each of the franchisees and does not include revenue from roll-off services, temporary services, and other permitted charges.
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factor of 3.0%. The proposed rate under Options 1 through 4 would take effect September 1, 2025 and the first rate adjustment under the new franchise agreement (s) is scheduled for September 1, 2026.
The rate revenue comparison by proposer for residential only and commercial only is provided for informational purposes only as either of those options would require services from both VVS and WM.
Table 4: Total Rate Revenue Requirement by Proposal
As already discussed, the proposed services can be configured into four possible combinations between VVS and WM, listed as Options in Table 1.
The total revenue requirements for these four options are presented in Table 5. Included are also the current rate revenue, adjusted rate revenue, ranking based on revenue requirement, dollar differences from the adjusted current rate revenue, and percentage difference from the adjusted current revenue.
Based on this measure only, WM’s Citywide proposal or Option 4 with the lowest rate revenue requirement of $8,410,415 ranks #1. The proposed rate revenue requirement for Option 4 represents a
12.9% decrease to adjusted current rate revenue. It is notable that Option 4 proposes an overall rate revenue reduction of $1,244,900 or 22.9% to the residential sector with an overall increase of $393,004 or 15.7% to commercial rate revenue.
Option 2, with rate revenue requirement of $8,706,126, ranks as #2. Under Option 2, the haulers would swap sectors, with VVS providing services to the residential sector and WM to the commercial sector.
The proposed rate revenue would increase by decrease by 9.8% over the adjusted current rate revenue with residential revenue decreasing by $768,576 or 10.8% and commercial rate revenue decreasing by $180,613 or 7.2%.
VVS’s Citywide proposal or Option 3, with rate revenue requirement of $10,006,865, ranks #3, representing an overall rate revenue increase of 3.6% over adjusted current rate revenue with residential revenue decreasing by $768,576 or 10.8% and commercial rate revenue increasing by $1,120,127 or 44.6%.
Ranking fourth is Option 1 with total rate revenue of $10,276,865, representing an overall increase of
6.4% over adjusted current rate revenue. This option represents a continuation of the current configuration with WM providing services to the residential and VVS to the commercial sector.
Residential rate revenue would decrease by $498,576 or 7.0% and commercial rate revenue would increase by 1,120,127 or 44.6% over adjusted current rate revenue.
Total
Diff From
Current
% Diff From
Current Total Diff
% Diff From
Current
Residential Only 6,938,400 7,146,552 6,377,976 (768,576) -10.8% 6,647,976 (498,576) -7.0% Commercial Only 2,435,692 2,508,763 3,628,889 1,120,127 44.6% 2,328,150 (180,613) -7.2% Citywide 9,374,092 9,655,315 10,006,865 351,551 3.6% 8,410,415 (1,244,900) -12.9% Proposal
Current
WM-Resi
VVS-Comm
Current
Adj for
Inflation 3%
VVS WM
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Table 5: Revenue Requirement by Option
3.3 City Fees
All proposals include payment of fees to the City as provided in Table 6.
Table 6: Annual City Fees by Sector
Option 1 Option 2 Option 3 Option 4
Sector
Current
WM-Resi
VVS-Comm
Current
Adj for
Inflation 3%
WM-Resi
VVS-Comm
VVS-Resi
WM-Comm
VVS
Citywide
WM
Citywide
Residential 6,938,400 7,146,552 6,647,976 6,377,976 6,377,976 5,508,648 Commercial 2,435,692 2,508,763 3,628,889 2,328,150 3,628,889 2,901,767 Total 9,374,092 9,655,315 10,276,865 8,706,126 10,006,865 8,410,415 4 2 3 1
Residential (498,576) (768,576) (768,576) (1,637,904)
Commercial 1,120,127 (180,613) 1,120,127 393,004
Total 621,551 (949,189) 351,551 (1,244,900)
Residential -7.0% -10.8% -10.8% -22.9%
Commercial 44.6% -7.2% 44.6% 15.7%
Total 6.4% -9.8% 3.6% -12.9%
Ranking
Difference From Current Rate Revenue
Percentage Difference From Current Rate Revenue
Fee Type Residential Commercial Total
Franchise Fees $287,000 $123,000 $410,000
Cal Recycle $375,000 $375,000 $750,000
Residential Impact $175,000 $175,000
Residential Street Sweeping $175,000 $175,000
Total City Fees $1,012,000 $498,000 $1,510,000
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4. PROPOSED RATES
4.1 Residential Rates
Proposed rates for standard residential cart service are provided in Table 7. Additional rates for ancillary residential services are provided in Exhibit 1.
The first column in Table 7 provides the current rates followed by the adjusted rates and then the rates proposed under Options 1 through 4. As noted previously, the current rates will be subject to an annual rate adjustment scheduled to take effect July 1, 2024. The current rates have been adjusted by 3% to allow for a more realistic comparison.
WM’s Citywide proposal or Option 4 offers the low lowest residential rates for a 64-gallon default cart service2
. WM’s proposed residential rates represent reductions from 9.5% to 24.1% from adjusted current rates for standard service and from 15.9% to 29.6% for senior service. VVS proposed the second lowest residential rates under Options 2 – residential only and Option 3 – citywide. VVS’s proposed residential rates represent reductions from adjusted current rates from 6.7% to 15.3% for standard service and from
7.5% to 20.9% for senior service.
Table 7: Proposed Residential Rates
4.2 Commercial Rates
A sample of current and proposed commercial rates for the most common commercial refuse collection services are provided in Table 8. The current rates will be subject to an annual rate adjustment effective July 1, 2024, a year prior to the start of the new agreement. 2 Standard service includes three 64-gallon carts: trash, recycling, and organics. Residents may choose to reduce or increase their cart sizes according to their needs.
Rates Effective Date 1/2/2024 7/1/2024
Option 1 Option 2 Option 3 Option 4
Current
WM-Resi
VVS-Comm
Current
Adj for
Inflation 3%
WM-Resi
VVS-Comm
VVS-Resi
WM-Comm
VVS
Citywide
WM
Citywide
35-Gallon Cart $31.09 $32.02 $29.54 $29.89 $29.89 $28.99 % Change from Current -7.8% -6.7% -6.7% -9.5%
64-Gallon Cart $38.31 $39.46 $36.39 $35.39 $35.39 $29.93 % Change from Current -7.8% -10.3% -10.3% -24.1%
96-Gallon Cart $45.96 $47.34 $43.66 $40.11 $40.11 $36.64 % Change from Current -7.8% -15.3% -15.3% -22.6%
35-Gallon Cart Senior $26.76 $27.56 $26.58 $23.91 $23.91 $23.19 % Change from Current -3.6% -13.3% -13.3% -15.9%
64-Gallon Cart Senior $33.03 $34.02 $32.76 $31.46 $31.46 $23.94 % Change from Current -3.7% -7.5% -7.5% -29.6%
96-Gallon Cart Senior $39.40 $40.58 $39.30 $32.09 $32.09 $29.31 % Change from Current -3.2% -20.9% -20.9% -27.8%
9/1/2025
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It should be noted that commercial rates cannot be fairly evaluated by comparing individual rates. The full value of commercial services is best evaluated by comparing the revenue requirement of the entire commercial sector based on proposed rates and subscription levels as provided in Table 5.
Table 8: Proposed Commercial Rates 3
5. PROPOSAL EVALUATION
This section provides an overview of the proposals submitted by VVS and WM. In Section 5.1, a summary of each company’s proposal highlights is provided. Section 5.2 provides an overview of the findings for each evaluation criterion category for both companies.
5.1 Summary of Proposer Evaluation Highlights
The following summary provides highlights of the proposal evaluations:
3 WM proposed rates are for the first bin. Second and additional bins are offered at a lower rate.
SIZE 1XWK 2XWK 3XWK 4XWK 5XWK 6XWK
2 Yard Bin $137.94 $239.15 $326.93 $423.08 $524.33 $609.03 3 Yard Bin $170.77 $283.12 $397.53 $516.11 $632.61 $772.08 4 Yard Bin $216.21 $347.96 $482.72 $687.50 $822.27 $998.80 2 Yard Bin $176.57 $326.29 $489.44 $652.58 $767.40 $874.96 3 Yard Bin $197.73 $368.62 $552.93 $737.23 $873.21 $1,001.94 4 Yard Bin $218.89 $410.94 $616.41 $821.88 $979.03 $1,128.92 2 Yard Bin $116.75 $210.15 $303.55 $396.95 $490.35 $525.32 3 Yard Bin $144.54 $260.18 $375.81 $491.45 $607.08 $722.72 4 Yard Bin $183.00 $329.40 $475.80 $622.20 $768.61 $915.01 2 Yard Bin $142.65 $256.76 $385.14 $513.53 $641.91 $770.29 3 Yard Bin $176.60 $317.89 $476.83 $635.78 $794.72 $953.67 4 Yard Bin $223.59 $402.47 $603.70 $804.94 $1,006.17 $1,207.41
CURRENT
OPTION 1 & OPTION 3: VVS CITYWIDE AND COMMERCIAL ONLY
OPTION 2: WM COMMERCIAL ONLY
OPTION 4: FROM WM CITYWIDE
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VVS
VVS submitted a comprehensive, high-quality proposal that was tailored to the City of Diamond Bar’s requirements. The following highlights from the VVS proposal provide a brief overview of some of the primary differentiators.
Locally Owned and Community Focused. VVS described their family-owned business with over six decades of experience, local headquarters, customer service call center, and operating facilities. The company credits their commitment to “Satisfy the Customer at any Cost” as leading to their customers’ satisfaction.
Local Infrastructure. VVS described their local infrastructure:
• Grand Central Recycling, Inc. (GCR) – A materials recovery facility owned and operated by the Perez family as a separate corporate entity that plays a pivotal role in advancing their comprehensive waste management strategy.
• Proposed Organics Processing. GCR will serve as a hub to manage the waste streams with a 38,850 square foot expansion scheduled to be completed by July 2024 and consisting of a $25M capital investment. This will add organics waste recovery capacity using the OREX (Organics Extrusion Press) Technology developed by Anaergia Corporation. • Kitchen Pails. VVS will provide a 3-gallon lidded, dishwasher-safe pail with introductory roll of pail liners and educational materials with clear program guidelines, detailing acceptable items for both the yard waste cart and the food waste pail to all SFDs and multi-family units.
Waste Management
WM also submitted a thorough, high-quality proposal, specialized for the City of Diamond Bar. The company emphasized its familiarity with the City while responding to the City’s new requirements. The following highlights from the WM proposal describe some of the company’s primary differentiators.
Routing Technology. WM described their eRouteLogistics software for developing, managing, and modifying routes. The software is used daily by the operations team to ensure that each route is wellmaintained and adjusted to reflect new developments and changes in service levels, customer counts, and traffic patterns. eRouteLogistics displays customer locations in a user-friendly map through a variety of coloring and labeling options and allows users to visualize existing and future routes. Updated in near real-time, eRouteLogistics enables our route managers, drivers, dispatchers, and customer service representatives to resolve any questions or concerns our customers or municipal partners may have concerning routes.
Technology to Optimize Performance. WM described their operations framework, “Service Delivery Optimization” or SDO, which focuses on four pillars of performance: Safety, Service, Savings and Satisfaction. WM’s technology is used to define, track and measure all aspects of operations to achieve continuous improvement. The company also emphasized their network of facilities which they described as strategically located near Mission Viejo.
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Effective Outreach and Education. The company emphasized the importance of “innovative, personalized and proven” outreach and education to help customers in Mission Viejo navigate a major change in services, including the significant expectations that customers separate organics and recyclables as required by SB 1383. WM described an outreach and education campaign to engage customers throughout the term of the new agreement.
Value, Partnership and Dedication. WM described the cost effectiveness achieved through SDO technology and the proximity of their facilities, and how this gives them the ability to offer reasonable rates. WM emphasized their 30 years of experience in delivering on-time, reliable services and their ability to provide dependable services from day one of the new contract. The proposal also highlighted the company’s stability as the largest service provider and ability to finance capital purchases and provide “gold-standard” insurance. Additionally, WM described the dedication of their local team and the service benefits associated with their knowledge of the City.
5.2 Overview of Analysis for each Evaluation Criterion
The following summary of findings provides highlights of the key proposal components that were considered in the evaluation process.
Proposer’s Qualifications
Collection Experience. VVS and WM are both well qualified to provide service in the City of Diamond Bar. Each service provider offers extensive experience in Southern California and has the local infrastructure necessary to efficiently meet the City’s needs.
VVS cited four cities in addition to Diamond Bar including the City of La Puente, City of Cypress, City of Walnut, and City of El Monte.
WM cited five cities including the City of Arcadia, City of La Verne, City of San Dimas, City of Baldwin Park, and Chino Hills.
Jurisdiction Satisfaction. VVS provided the reference list above from five jurisdictions all with service over eight years and the City of La Puente has been serviced over 29 years. WM provided the reference list above from five jurisdictions, four of which were all with service over twelve years and City for the Baldwin Park has been service for over 33 years. WM’s City of Chino reference from WM was only one year old and described as the latest transition executed and transitioned in five months.
Both VVS and WM show longevity servicing these jurisdictions, which demonstrates jurisdiction stratification.
Management and Customer Service Systems, Both VVS and WM offer customer service systems capable of tracking and monitoring contract compliance, quality of collection service, and call center responsiveness. Each company is exceptionally equipped with quality, industry-specific systems capable of meeting the City’s requirements for documentation, reporting, and billing.
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Both companies included digital enhancements to the customer service experience including on-line chat, mobile application, expanded website capabilities, focus on social media and community outreach.
VVS included some new expanded customer service features:
• Our Customer Service representative team comprises multilingual representatives proficient in English, Spanish, Cantonese, Tagalog, Mandarin, and Vietnamese. • VVS uses Cisco WebEx contract center ensuring tracking calls and wait times. • Additional customer service features include live chat, mobile app, user-friendly website, social media.
WM included some new expanded customer services features:
• Interactive Voice Response (IVR) - self-service options online. • Contact Back System – get a call back, no need to wait on hold. • Live Chat support – online direct chat option.
• MY WM App – application for customer to pay bills and request and schedule service. • Repeat Issues within two months, issues a ticket to management that requires accountability and ticket closure.
Key Personnel Qualifications. VVS and WM both employ exceptionally qualified personnel possessing decades of local industry experience.
VVS included summary resumes for 13 staff of which four had an percentage dedication to the City of Diamond Bar equaling to 1.8 full-time employees. In their rate proposal forms, which included a budget to support their proposed rates, VVS provided funding for 3.8 full-time employees excluding drivers.
WM included summary resumes for 19 staff of which 12 had a percentage dedication to the City of Diamond Bar equaling to 8 FTE. In addition, WM provided summary resumes for a senior leadership team of five. In their rate proposal forms, which included a budget to support their proposed rates, WM provided funding for 4.8 full-time employees, excluding drivers indicating a discrepancy between proposed FTE of 8 and budgeted FTE of 4.8.
Table 9: Proposer Staffing Overviews
VVS WM
Title % Title %
Contractor Representative 10% Public Sector Services Manager 100% Operations Supervisor 50% Public Sector Reginal Manager 25% Client Services Manager 20% Recycling Coordinator 25%
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Additional Service Rep 100% Sustainability Manager 100% District Manager 100%
Roll-Off Route Manager 50%
Residential Route Manager 50%
Residential Route Manager 50%
Commercial Route Manager 100%
Operations Specialists 25%
Contract Compliance Manager 25%
Maintenance Manager 100%
Full Time Equivalents 1.8 8.0
Chief Financial Officer
Controller
Human Resources Manager
Operations Manager
Risk and Safety Manager
Miantenance Manager
Government Affairs
Diversion Compliance
Coordinator
Social Media & Outreach
Coordinator
Not Indicated
Area Customer Experience
Manager
Communications Senior Manager
Centralized Dispatch Manager
Route Managers
SB 1383 Team of three
Senior Leadership Team of 5
Not Indicated
Technical Qualifications
Implementation Plan. Each company prepared a detailed implementation schedule designed to meet the deadlines necessary to commence the new agreement on September 1, 2025. The plans were reviewed for reasonableness and completeness. Both VVS and WM proposed implementation schedules capable of achieving staffing levels, procurement of equipment, customer outreach and education program development and transition activities necessary to facilitate the transition to new services.
AB 341, AB 1826, and SB 1383 Implementation Plan. Both VVS and WM prepared detail summaries meeting compliance with AB 341 (Commercial Recycling), AB 1826 (Organics Recycling), and SB 1383 (Organics Waste Reduction). Each companies’ proposals addresses planning, education, diversion, implementation, reporting, and ongoing monitoring to achieve successful compliance.
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VVS and WM developed comprehensive programs to achieve the City’s diversion goals, ensure regulatory compliance and respond to the new SB 1383 requirements. Each company proposed collection programs designed to achieve the performance standards set forth in the agreement.
Additionally, the companies proposed the required dedicated recycling coordinator and prepared a detailed outreach and education strategy to inform customers of the new requirements, promote effective program participation and notify customers of compliance issues. VVS identified a specific staff to serve as full-time recycling coordinator and WM committed to hire and train a qualified Recycling and Sustainability Manager for the City of Diamond Bar.
Diversion Outreach and Education Programs. Both companies provided a thorough and comprehensive plan for outreach and education accompanied with quality educational materials and state of the art systems to support their programs.
VVS proposal included the following activities to promote diversion programs:
• Identifying key stakeholders and conducting preliminary meetings; training sessions for city personnel; providing information on proper sorting, container usage; targeted meetings with property owners; tracking and monitoring diversion rates, tonnages, and conducting waste compositions; generating regular reports to City; implementing contamination monitoring including physical inspections, photo documentation, and customer notifications; providing continuous assistance through helplines, online platforms, and community engagement events. • Food Rescue Collaboration including
o Stakeholder Engagement: Identifying and partnering with established food rescue organizations.
o Targeted Awareness Campaigns: Informing residents, businesses, and food establishments.
o Collection and Donation Process: Establishing collection routes, providing safe and hygienic food storage and handling, collaborating with local food banks, shelters, and community organizations.
WM proposal included the following activities to promote diversion programs:
• Hiring a dedicated Recycling and Sustainability Manager • Targeted education and outreach for all sectors including conducting community workshops including chamber, civic group, HOAs/property managers, educational institutions; distributing educational flyers; creating how-to videos; providing City staff training including City’s contracted janitorial service; working with code enforcement; providing City staff training on how to properly recycle.
• Incentive Programs: Residential recycling rewards, commercial recycling rewards, food recovery program that recognizes commercial customers who work with local food recovery organizations.
• Use of Smart Truck SM program to track cart monitoring, which has been approved by CalRecycle for tracking contaminate routes.
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• Conducting SB 1383 route audits and cart monitoring; conducting waste evaluations; reports to the City; education and promotion using social media and website, conducting event education; providing non-compliance notifications; conducting annual site visits to review compliance; assistance to the City with waivers.
• Commercial edible food recovery and donation: Create customized educational materials highlighting how and where to participate in edible food recovery and donation.
Proposed Disposal, Transfer, and Processing Facilities. The facilities proposed by both companies meet the requirements of the RFP. Both companies demonstrated the viability of their facility plan and have secured the capacity necessary to manage the material collected within the City. VVS’s local infrastructure is located in closer proximity to the City. Table 10 provides a list of the proposed facilities to be used by proposers for landfilling and for recycling and organic waste material processing.
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Table 10: Proposed Facilities
Type of Facility VVS WM
Organics GCR Materials Recovery Facility
17445 Railroad St
City of Industry, CA 91748
Materials are transported to Agromin
Organics.
Azusa Material Recycling Facility
1504 West Gladstone
Azusa, CA 91702
Material to be pre-processed and
transported to any of the following:
• South Valley Compost Site
• South Kern Industrial Center
Compost Facility
• WM Pala Composting Facility
• Ecology Compost
Recyclables Grand Central Recycling & T.S.
17445 Railroad St
City of Industry, CA 91748
Azusa Material Recycling Facility
1501 West Gladstone
Azusa, CA 91702
C&D Grand Central Recycling & T.S.
17445 Railroad St
City of Industry, CA 91748
Downtown Diversion, Inc (DDI)
2424 E. Olympic Blvd
Los Angeles, CA 90021
Maitri Road Recycling
24980 Maitri Rd.
Corona, CA 92883
Disposal El Sobrante Landfill
10910 Dawson Road
Corona, CA 91719
Olinda Alpha Landfill
1942 N. Valencia
Brea, CA 928239
El Sobrante Landfill
10910 Dawson Road
Corona, CA 91719
Transfer Grand Central Recycling & T.S.
17445 Railroad St
City of Industry, CA 91748
Pomona Valley Transfer Station
1371 E. 9th St
Pomona, CA 91766
Grand Central Recycling & T.S.
17445 Railroad St
City of Industry, CA 91748
Azusa Material Recycling Facility &
Transfer Station
1501 West Gladstone
Azusa, CA 91702
Number and Materiality of Exceptions to Agreement
VVS took no exceptions to the draft franchise agreement as published with the RFP.
WM listed two exceptions, 1) Section 105. Extraordinary Rate Adjustments, and 2) Section 13.7 Liquidated Damages. With regards to Extraordinary Rate Adjustments, WM proposed changes to the draft franchise agreement that provides more latitude in the process for securing extraordinary rate
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adjustments. Additional negotiations will be required to finalize the franchise agreement and due to other considerations, such as their very competitive rates, SVM considers this a serious exception.
With regard to liquidated damages, WM did not propose specific changes but took exception to this section to retain the option to discuss these items with the City during negotiations to further clarify and resolve standards of performance and penalty amounts that WM considers ambiguous, unclear, or excessive. SVM does not consider this exception to be difficult to resolve.
Financial
Financial Stability: VVS and WM demonstrated the financial capabilities necessary to service the City.
Based upon the review of the submitted financial statements, both companies are capable of acquiring equipment and providing financial assurance of performance.
WM is a large national corporation with reported revenue of $19.7B for fiscal year 2022 and an asset base of $31.4B. Based on its 2022 financial statement, WM’s current ratio calculates to 0.81 ($3,551B / $4,394B) and its debt ratio calculates to 0.78 ($24,503 / $31,367).
VVS is local corporation with reported of $115M for fiscal year 2022 for Valley Vista and Grand Central Recycling combined and an asset base of $15.7M. Based on VVS report, its current ratio calculates to
0.84 ($15.7M / $18.6M) and its debt ratio calculates to 0.57 ($62.4M / $109.3M).
Each company’s anticipated capital investment is shown in Table 11. As the largest solid waste services company in North America, WM’s financial capabilities exceed those of VVS, however for the purposes of the Diamond Bar contract, both companies are financially equipped to provide the financial stability required by the City.
Table 11: Proposed Capital Investment
Type of
Investment
VVS WM
Sector Residential Commercial Total Residential Commercial Total Vehicles
$4,981,199
11 $1,253117
4 $6,234,316
15 $2,800,000
8 $1,125,000
3 $3,925,000
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Total
Units
Containers
Carts
Pails
Bins
$2,500,491
45,819
15,273
0 $561,672
542
n/a
0 $3,062,163 $2,331,638
45,819
0 0
$510,553
476
n/a
578
$2,842,191
Other $0 $0 $0 $0 $80,000 $80,000
Total Capital $7,481,690 $1,814,789 $9,296,479 $5,131,638 $1,715,553 $6,847,191 Table 12 provides a list of the quantities and make and model of the collection vehicles proposed by each company. It should be noted that for WM, the quantity of vehicles provided in Table 11 differ from those in Table 12. The quantity and type of vehicle provided in Table 12 were taken from WM proposal while the quantity of vehicles provided in Table 11 were taken from WM Rate Proposal forms. This is an indication that WM’s proposal may be underpriced as it has not accounted for all the costs required to provide the vehicles it proposes to provide.
Table 12: Proposed Collection Vehicles
Company Automated Side Load Front-End Load Scout
VVS Qty: 10
Chassis: CCC/LWT
Body: McNeilus
Cubic yard capacity: 28
Qty: 4
Chassis: CCC/LWT
Body: F.F. Gomez
Cubic yard capacity: 38
Qty: 1
Chassis: Not stated.
WM Qty: 9
Chassis: Peterbilt 520, Autocar ACX
Body: Not Stated
Cubic yard capacity: 40
Qty: 4
Chassis: Peterbilt 520, 56
Body: Not stated
Cubic yard capacity: 40
Qty: 2
Chassis: Ford F-150
6. RATE PROPOSAL EVALUATION
Proposers were required to provide detailed financial information by completing the Rate Proposal Forms issued with the RFP. This information allows for the evaluation of the proposals rate revenue requirements and reasonableness of their cost assumptions.
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The RFP included criteria for evaluation of the Rate Proposal component of the proposals. The criteria are described in detail under Section 2.0, Proposal Evaluation Process and are included here in summary form for ease of reference:
• Competitiveness of Cost Proposals: Cost competitiveness relative to other proposals. • Reasonableness of Cost Proposals: Logical relationship between proposed cost and operation assumptions. Proposals were evaluated on total first-year revenue requirement.
The rate proposals were evaluated based on total revenue requirement. This is important because the economic value of the contract cannot be assessed based on the price of a specific service. For example, a low price quoted for the residential rate may not readily reflect the financial costs of the entire contract. For this reason, the proposals were evaluated on the overall revenue requirement to perform all the services required by the RFP.
6.1 Rate Proposal Competitiveness
Each rate proposal’s competitiveness was determined using a formulaic approach. First, the rates quoted in the rate sheets by each proposer were used to project Year 1 revenue requirement. The proposal with the lowest total revenue requirement was given a rating of 100% for competitiveness.
The remaining proposals were rated based on the percentage deviation from the proposal with the lowest revenue requirement.
Based on this analysis Option 4-WM Citywide proposal offers the overall lowest revenue requirement for Year 1 and therefore receives a rating of 100%. Option 2 – VVS Residential / WM Commercial offers the second lowest revenue requirement. With a 3.0% additional requirement than Option 4, Option 2 receives a rating of 97.0%. Option 3-VVS Citywide receives a rating of 81.0% as it requires 19.0% more rate revenue than Option 4. Option 1-WM Residential / VVS Commercial requires 21.4% more rate revenue than Option 4 and receives a rating of 78.6%.
Table 13: Revenue Requirement Comptitiveness Rating
Proposer
Year 1
Proposed
Revenue
Difference
from Lowest
Option
Percent
Difference
from Lowest
Option
Rating
Option 4:
WM Citywide $8,410,415 $0 n/a 100.00%
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Option 2:
VVS Residential
WM Commercial
$8,706,126 $295,711 3.0% 97.0%
Option 3:
VVS Citywide $10,006,865 $1,596,450 19.0% 81.0%
Option 1:
WM Residential
VVS Commercial
$10,276,865 $1,866,450 21.4% 78.6%
6.2 Rate Proposal Reasonableness
In addition to evaluating rate proposal competitiveness, the reasonableness of the rate proposals was considered. The primary tool used to evaluate the reasonableness of the rate proposals was the preparation of a financial proforma to serve as the Benchmark Proforma. Prior to the public distribution of the RFP, SVM prepared the Benchmark Proforma to project the price for providing the services requested in the RFP. SVM has many years of experience in preparing solid waste services rate proformas. The model considers that there may be variations in proposer costs due to competitive advantages or long-term arrangements they may have made that allows some of the proposers to maintain an economic advantage. However, deviations from revenue requirement identified in the Benchmark Proforma must be reasonably explained.
Our Benchmark Proforma indicated that the services contemplated in the RFP could reasonably be performed with a Revenue Requirement of $10M per year, representing an increase in revenue requirement of 20.1% from the adjusted current revenue requirement of $8.3M.
To perform the reasonableness rating for each rate proposal, the revenue requirement for each rate proposal was compared to and rated based on the percentage deviation from the projected revenue requirement in the Benchmark Proforma. While it was anticipated that proposers would deviate from the Benchmark Proforma due to varying competitive advantages and/or disadvantages, deviations greater than 20% may indicate that a proposal is significantly underpriced or overpriced. This is important because an underpriced proposal can become problematic under a 10-year contractual commitment. If the proposer is financially unable to sustain its operations, the City may have to consider granting unexpected financial relief in order to minimize possible service disruptions.
Based on this analysis, Option 2 and 4 offered first year revenue requirements below the Benchmark Proforma ranging from 13.1 to 16.0. Option 3 offered first year rate revenue at the same level as the benchmark proforma. Option offered rate revenue above the proforma. All of these deviations are reasonable. Option 3 came the closest to the benchmark proforma and received a rating of 100%.
Option 1 followed and received a rating of 97%. Option 2 and 4 received a rating of 87% and 84% respectively due to their larger deviation from the benchmark proforma.
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Table 14: Revenue Requirement Reasonableness Rating
Proposer
Year 1
Proposed
Revenue
Difference
from Lowest
Option
Percent
Difference from
Lowest Option
Rating
Option 4:
WM Citywide $8,410,415 ($1,606,284) -16.0% 84%
Option 2:
VVS Residential
WM Commercial
$8,706,126 ($1,309,320) -13.1% 87.0%
Option 3:
VVS Citywide $10,006,865 ($3,901) 0.0% 100%
Benchmark
Proforma $10,010,766 $0 0% n/a
Option 1:
WM Residential
VVS Commercial
$10,276,865 266,099 2.7% 97.0%
6.3 Combined Rate Proposal Rating
When the competitiveness and reasonableness ratings are combined, Option 4-WM Citywide ranks 1 with a 92% total. Option 2-VVS-Resi/WM Com ranks second with a 91.95% rating and followed by Option 3-VVS Citywide and Option 1-WM Resi/WM Com.
Table 15: Combined Rate Proposal Rating
Option 1
WM-RESI
VVS-COM
Option 2
VVS-RESI
WM-COM
Option 3
VVS
CITYWIDE
Option 4
WM
CITYWIDE
Revenue Requirement -
Competitiveness 79.6% 97.0% 81.0% 100%
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Revenue Requirement -
Reasonableness 97.3% 86.9% 100% 84.0%
Combined Rating 87.950% 91.95% 90.50% 92.0%
Ranking 4 2 3 1
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