Napa City Council
April 18, 2023

21. “Pre-Processed, Baler-Ready Recyclable Materials” means fiber, plastics, aluminum and other Recyclable Materials segregated by type and sorted to remove contaminants so that they are “baler-ready” and do not require any additional sorting.

22. “Pre-Processed, Market-Ready Recyclable Materials” means glass, Covered Electronic Waste, Electronic Waste and other materials that are pre-sorted, ready to go directly to market, and do not require baling. In the case of Covered Electronic Waste and Electronic Waste, the material is to be already sorted into those two categories, stacked on pallets, wrapped and ready for shipment to markets.

23. “Quarterly Average Materials Revenue Received” means the average of the revenue received by the City for a specific material marketed from the Napa MDF for each of the three months of the preceding quarter as defined below. For purposes of calculating the Quarterly Average Materials Revenue Received, the following quarters will be used: the Quarterly Average Materials Revenue Received prices to be applied for the period October 1 through December 31 will be based upon the revenue received by the City for each material type during the period May 21 through August 20. The Quarterly Average Materials Revenue Received prices to be applied for the period January 1 through March 31 will be based upon the revenue received by the City for each material type during the period August 21 through November 20. The Quarterly Average Materials Revenue Received prices to be applied for the period April 1 through June 30 will be based upon the revenue received by the City for each material type during the period November 21 through February 20. The Quarterly Average Materials Revenue Received prices to be applied for the period July 1 through September 30 will be based upon the revenue received by the City for each material type during the period February 21 through May 20. The City will calculate the Quarterly Average Materials Revenue Received for each quarter by taking the revenue received each quarter divided by the number of tons of that material sold in the quarter. A sample calculation of the “Quarterly Average Materials Revenue Received” appears in Attachment Four.

The Quarterly Average Materials Revenue Received will reflect one hundred percent (100%) of the revenue received by the City for sale of each type of material, prior to the seventy percentlthirty percent (70%130%) revenue split with the operator of the Napa MDF.

24. “Recyclable Materials” means material which otherwise would become or be treated as MSW but which, by means of a process of collecting, sorting, cleaning, treating and reconstructing, may be returned to the economic mainstream in the form of finished or source material for new, reused or reconstituted products, which may be used in the market place. “Recyclable Materials” includes paper, magazines, cardboard, boxes, plastic, metal cans, glass and other similar materials. Whenever the context requires, “Recyclable Materials” includes Yardwaste, Covered Electronic Waste, Electronic Waste and DRTS New Materials.

25. “Single Stream Recyclable Materials” means those Recyclable Materials collected as separated from Municipal Solid Waste by the Customer and consisting of a mixture of metals, glass, plastics #1-7, and all paper grades from residential, commercial and business establishments, and industrial customers.

For purposes of this agreement “Single Stream Recyclable Materials also includes Recyclable Materials collected in any community or jurisdiction on a regular basis by any entity pursuant to a contract with a public agency, or by a public agency, as part of a ratepayer funded residential, commercial or industrial (roll off) recycling program. This includes materials collected as part of a residential curbside or backyard recycling program, a commercial program and an industrial (roll off) program. Such materials may be collected as commingled, dual stream or in the case of a residential curbside, side yard or backyard recycling program, may be source separated.

26. “Yardwaste” means clean loads of tree trimmings, grass cuttings, leaves, branches and similar organic materials including vineyard clippings that do not contain contaminants such as metal, plastics, 4 Attachment AA
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EXHIBIT A

glass and the like that would interfere with the composting process or contaminate the final compost product.
5 Attachment AA
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EXHIBIT A

ATTACHMENT TWO

MEMORANDUM OF UNDERSTANI)ING BETWEEN THE COUNTY OF NAPA AND THE

CITY OF NAPA RELATING TO THE NAPA MATERIALS DIVERSION FACILITY Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

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City Agreement

MEMORANDUM OF UNDERSTANDING
BETWEEN THE COUNTY OF NAPA AND THE CITY OF NJP Account

RELATING TO THE NAPA MATERIALS DIVERSION FACHTY
THIS MEMORANDUM OF UNDERSTANDING (“MOU”) is made as of May 3, 2005, by and between the COUNTY OF NAPA, a political subdivision of the State of California (“County”) and the CITY OF NAPA, a charter city (“City”).

RECITALS
A. The City has recently purchased a materials diversion facility (“Facility”) located at 820 Levitan Way, Napa. The Facility is operated by USA Waste of California, Inc. (“USA Waste”) pursuant to an Interim Operating Lease which will expire on September 30, 2005.

B. Recyclable Materials and Yardwaste which originate in the City and in portions of the County, as well as from within other jurisdictions, are delivered to the Facility for processing and composting.

C. The residue of materials delivered to the Facility that can neither be recycled nor composted is delivered to a Transfer Station, which is located adjacent to the Facility and is operated by the Napa-Vallejo Waste Management Authority, a joint powers agency whose members include the County and the City.

D. The contracts between the City and Napa Garbage Service (“NGS”), a division of USA Waste of California, Inc. (“USA Waste”), and between the County and Napa Valley Disposal Service (“NVDS”), also a division of USA Waste, each expire on September 30, 2005, concurrently with the expiration of the Interim Operating Lease of the Facility.

E. The County solicited proposals to provide collection of municipal solid waste, Recyclable Materials, and Yardwaste within the portion of its jurisdiction called Zone 1 commencing October 1, 2005.

F. The City solicited proposals to provide collection of municipal solid waste, Recyclable Materials and Yardwaste within the City and to operate the Facility commencing October 1, 2005.

Memorandum of Understanding

7 1088 198.

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G. The City has awarded a contract for these services to Napa Recycling and Waste Services, LLC, and the County has awarded a contract for these services to Napa County Recycling and Waste Services, LLC, two affiliated companies with common ownership.

H. The County has determined that it will be in the best interests of residents and businesses in Zone 1 for certain Recyclable Materials and Yardwaste collected within that Zone by Napa County Recycling and Waste Services, LLC and by County employees to be delivered to the Facility for processing and composting. The City has determined that it is in its best interest to accept such materials at the Facility on the terms contained in this Agreement.

THE PARTIES AGREE AS FOLLOWS:

I. COOPERATIVE PROVISIONS APPLICABLE TO PHASE ONE (BEFORE THE

CITY BEGINS OPERATING THE FACILITY)
The parties recognize that there will be a transition period during which the equipment currently in use at the Facility will be removed and new equipment installed, tested and placed into service by Napa Recycling and Waste Services, LLC, on behalf of the City. The Interim Operating Lease between the City and USA Waste contemplates that this transition period will end on or about September 30, 2005, and that during this period Clean MRF Recyclable Materials delivered to the Facility will be accepted, but then transferred by the City’s Contractor to another facility for processing. The parties recognize that the transition period may extend beyond September 30, 2005. The City and County will work closely during this transition period to facilitate the installation of new processing equipment and will cooperate with the City and its Contractor’s requests and directions relating to vehicle access, parking and materials delivery.

II. COOPERATIVE PROVISIONS APPLICABLE TO PHASE TWO (AFTER THE

CITY BEGINS OPERATING THE FACILITY)

1. The City will arrange for the County to have priority (second only to the City’s) to the processing capacity of the Facility for Clean MRF Recyclable Materials and Yardwaste.

The City will require the Facility operator to refuse to accept Clean MRF Recyclable Materials and Yardwaste delivered by any third party if at any time the operator becomes unable to accommodate all materials of these types delivered by or on behalf of the County and City.

Memorandum of Understanding

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2. The County will direct Napa County Recycling and Waste Services, LLC to deliver to the Facility:

A. All Clean MRF Recyclable Materials collected in the areas of the County that are shown on Attachment 1 (i.e., Zone 1) (1) from residential customers, and (2) from commercial/business customers in containers whose capacity is six cubic yards or less.

B. All Yardwaste collected in the areas of the County that are shown on Attachment I (i.e., Zone 1) (1) from residential customers, and (2) from commercial/business customers in containers whose capacity is six cubic yards or less.

3. If the County collects Clean MRF Recyclable Materials or Yardwaste within Zone I through its own forces, it will deliver all such materials to the Facility. The County will continue diversion programs (e.g., curbside collection of Clean MRF Recyclable Materials and Yardwaste) as provided in the agreement between the County and Napa County Recycling and Waste Services, LLC, dated as of May 3, 2005, Section 3.2.

4. Clean MRF Recyclable Materials and Yardwaste collected by Napa County Recycling and Waste Services, LLC in Zone 1 in containers whose capacity is greater than six cubic yards may be, but is not required to be, delivered to the Facility under this agreement.

5. The County may direct its contractor to deliver other materials (e.g., bulky goods, tires, electronic waste, wood and concrete) collected in Zone 1 to the Facility, but need not do so.

If the City accepts these other materials from third parties it will also accept them from the County.

6. If the City implements Food Waste composting, the County may direct Food Waste to the Facility, but is not obligated to do so.

7. The City will require the operator of the Facility to deliver any residue (i.e., materials which cannot be recycled or successfully composted) to the Transfer Station for disposal. “Residue” does not include materials delivered to landfills for use as “Alternative Daily Cover” or wood chips delivered to Transformation facilities for fuel, whether or not the operator receives payment for such materials.

Memorandum of Understanding

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8. A. The City will charge (or credit) the County, and the County will pay (or accept) exclusively from revenues generated from ratepayers in the Unincorporated Area of Zone 1 commencing October 1, 2005, the following amounts for Yardwaste and Clean MRF Recyclable Materials delivered to the Facility by or for the County from Zone 1.

Period Charge for Credit for
(calendar year) Yardwaste Clean MRF
($/ton) Recyclable
Materials
. ($/ton)
2005 (10/1-12/31) 25.00 (35.00)
2006 25.00 (35.00)
2007 26.00 (34.00)
B. Commencing January 1, 2008, the City may, after 60 days notice to County, change the rates for Yardwaste and/or Clean MRF Recyclable Materials.

C. The charge for Yardwaste is subject to increase at any time if the processing method at the Facility is modified in order to comply with regulatory requirements or environmental conditions, e.g., if aerated static pile (ASP) composting is implemented to control odors. The charge will be increased by the same amount per Ton that the City is required to pay the Facility operator for processing City-delivered Yardwaste.

D. Napa County Recycling and Waste Services, LLC will be charged no more than the posted Gate Fee for other materials (e.g., bulky goods, tires, electronic waste, wood, concrete) collected in Zone I which it elects to deliver to the Facility.

E. If the City implements Food Waste composting and the County wishes to arrange for Food Waste to be delivered to the Facility, the parties will meet and confer to establish the amount per Ton that the County will pay.

F. The amounts set forth in this section 11.8 are predicated on Napa County Recycling and Waste Services, LLC serving as the collection contractor for the County’s Zone I and Napa Recycling and Waste Services, LLC serving as Facility operator under contract with the City. If either party changes its contractor (other than to an affiliated successor with substantially identical ownership), the parties will meet and confer to establish new charges and credits. If the parties cannot reach agreement within 90 days, either party may terminate this Memorandum of Understanding

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Agreement and the County may thereafter direct both Clean MRF Recyclable Materials and Yardwaste to a different facility.

9. The City will bill the County monthly, in arrears. The City will issue a single invoice for all Clean MRF Recyclable Materials and Yardwaste delivered by the County’s collection contractor, all Clean MRF Recyclable Materials and Yardwaste delivered by County employees and all other material delivered by County employees. The invoice will show subtotals by principal material type (Clean MRF Recyclable Materials and Yardwaste) and for each other type of material for which a different charge is payable. The invoice will show a credit for Clean MRF Recyclable Materials and a charge for all other materials, including a separately identified surcharge for contaminated loads. The City’s invoice will also indicate the number and value of County coupons issued to residents of and businesses located in County Zone 1 and collected by the City’s contractor. The County must pay the City for such collected coupons at face value. The invoice will indicate the portion of materials delivered by the County through its own forces. The invoice total will be a net figure. Concurrently, the City will send a copy of each monthly invoice to Napa County Recycling and Waste Services, LLC.

Invoices are due and payable within forty-five (45) days after issuance. Delinquent payments will bear interest at ten percent (10%) per year, or the maximum legally allowable rate if lower. If the County is delinquent in paying two consecutive monthly invoices, the City may require the County to either or both (1) post a deposit equal to the total payment due for the previous three (3) months or (2) pay an estimated amount each month, in advance. The City will not owe interest on any deposit required in the event of delinquent payments unless required by law. If the County fails to pay an invoice for more than sixty (60) days after it is due, the City may terminate this Agreement. Invoices will be sent to:

Audit Manager
Napa County Auditor-Controller’s Office
1195 Third Street, Room B-b
Napa, CA 94559

10. The City will not enter into a contract with any third party allowing it to deliver Clean MRF Recyclable Materials and Yardwaste on terms that are more favorable than those extended to the County in Section II.8.A, taken together.

Memorandum of Understanding

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11. Residents of and businesses located in County Zone I will be charged the posted Gate Fees established by the City for materials which they self-haul to the Facility. The City will accept coupons that the County’s Contractor issues to residents and businesses in Zone 1 to be applied toward gate fees. The City will honor such coupons at face value.

III. TERM

1. The term of this MOU begins on October 1, 2005 and ends on November 30, 2015, unless earlier terminated as provided below.

2. If the Facility is destroyed or substantially damaged by earthquake, fire or other cause, and if City elects not to rebuild or reconstruct it, this Agreement will terminate thirty (30) days after City gives notice to County of its election.

3. If the City, pursuant to Section II.8.B, changes the charge for Yardwaste, and/or the credit for Clean MRF Recyclable Materials after January 1, 2008, or if charges are changed pursuant to Section ll.8.C. at any time, the County may, on 60 days notice to City, terminate this MOU and direct both Yardwaste and Clean MRF Recyclable Materials to a different facility which offers more favorable terms to the County if the City does not elect to match the terms of the offer from the other facility. Any such offer must be in writing and binding on the owner and operator of the other facility and a complete copy must be provided to City at the same time the County provides notice of its intent to terminate this MOU.

IV. OTHER AGREEMENTS

1. The City or its representative will issue contamination violation notices to the County’s collection contractor (Napa County Recycling and Waste Services, LLC) and to the County for any loads of Clean MRF Recyclable Materials or of Yardwaste delivered to the Facility which contain more than ten percent (10%) by weight of materials constituting Contamination. For any such load, the City may: 1) direct Napa Recycling & Waste Services to process the contaminated load and charge the County a “contaminated load surcharge” for the load, which shall be calculated based on the $/ton contaminated load surcharge rate posted at the scalehouse multiplied by the total number of tons in the load; or 2) require that the contaminated load be reloaded by Napa Recycling & Waste Services at the expense of the vehicle operators Memorandum of Understanding

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EXHIBIT A

and remove load from the MDF, and charge the County a standard “reload fee” which shall be the rate posted at the scalehouse. The City will provide notification of contaminated loads to the County on a monthly basis. Notifications will be sent to:

County Executive Office
1195 Third Street
Room 310
Napa, CA 94559
In addition, the County will comply, and require Napa County Recycling & Waste Services, LLC to comply, with all hazardous waste exclusion program regulations adopted by the City.

2. At the request of the County, the City will meet up to one time per calendar year to discuss the list of materials accepted at the Facility under the categories of Clean MRF Recyclable Materials and Yardwaste. Changes to the list of materials may be suggested by the County at the meeting, but must be approved in writing by the City prior to acceptance of the material types at the Facility.

3. The City will have the sole and exclusive right to establish and collect Gate Fees for all materials delivered to the Facility by third parties without contracts, including but not limited to other local government agencies, collection companies engaged by such government agencies, independent landscapers, roofers and contractors, and members of the public.

4. If the City elects to accept Special Recycling Waste at the Facility, residents of and businesses located in Zone 1 of the County may deliver such waste upon payment of the posted Gate Fees, provided that the City is permitted to accept Special Recycling Waste from outside the City. The City has no obligation under this MOU to accept waste of this type and, if it begins to accept it, the City may terminate its acceptance at anytime. If the City elects to discontinue accepting any Special Recycling Waste, City may, on 60 days notice to the County, terminate this service.

Memorandum of Understanding

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EXHIBIT A

5. The City will arrange for reports to be prepared on Tons delivered to the Facility from or by the County and Tons diverted from landfill disposal that are similar in content and format to the reports that the City will prepare for its own use in documenting compliance with the Act. Such reports will be delivered to the County at the same time and frequency as the City’s reports are produced. The City will provide the County a monthly report of inbound material delivered by the County in accordance with Section II herein.

V. MISCELLANEOUS AGREEMENTS

1. Capitalized terms in this MOU shall have the meanings assigned to them in Attachment Two, unless the context indicates otherwise.

2. This MOU may be amended only in a writing approved and executed by both parties.

3. The County may not assign any of its rights under this MOU, nor delegate any duties or those of its contractor arising under this MOU, without the prior written consent of the City.

4. Without waiving the provisions of Section V.3, all of the rights and duties of the parties shall inure to the benefit of, and be binding upon, their respective successors and assigns.

5. All notices given under this MOU shall be in writing. Notices shall be sent:

If to the City: City of Napa
955 School Street
Napa, CA 94559
Attention: City Finance Director
Facsimile: (707) 257-9251
If to the County: County of Napa
1195 Third Street, Room 310
Napa, CA 94559
Attention: County Executive Officer
Facsimile: (707) 253-4176
Notice shall be sufficiently given when (a) personally delivered to the recipient, (b) mailed first class postage prepaid, (c) delivered by overnight delivery service with charges prepaid, or (d) sent by facsimile to the last facsimile number of the recipient so long as a Memorandum of Understanding

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duplicate copy of the notice is promptly given by first class mail or the receiving party delivers a written confirmation receipt. Either party may change the address to which notices to it are to be sent by means of a notice delivered to the other party as provided above.

6. Nothing in this MOU, express or implied, is intended to confer upon any person, other than the parties and their respective successors and assigns, any rights or remedies.

7. If, and for as long as, performance by a party is made impossible by acts of God, casualty, State or federal government action, civil commotion, acts of terrorism or other causes not the fault of and beyond the reasonable control of the party obligated to perform, performance by that party is excused. This section does not excuse a failure to pay money when due.

8. Time is of the essence of this MOU and each of its provisions

9. If any term or provision of this MOU is held invalid or unenforceable, the remainder of this MOU shall not be affected.

10. No waiver of a breach of any provision shall be deemed a waiver of any other breach, and no waiver shall be valid unless it is in writing and executed by the waiving party.

No extension of time for performance of any obligation or act shall be deemed an extension of time for any other obligation or act.

11. This MOU may be executed in one or more counterparts, each of which shall be deemed an original and all of which taken together shall constitute one and the same instrument.

The execution of the MOU shall be deemed to have occurred, and this MOU shall be enforceable and effective, only upon the complete execution of this MOU by County and City.

12. If any legal action or other proceeding, including arbitration or an action for declaratory relief, is brought to enforce this MOU or because of a dispute, breach, or default in connection with this MOU, the prevailing party shall be entitled to recover reasonable attorney fees and other costs, in addition to any other proper relief. “Prevailing party” includes (a) a party who dismisses an action in exchange for sums allegedly due; (b) the party that receives performance from the other party of an alleged breach or a desired remedy, if it is substantially equal to the relief sought in an action; or (c) the party determined to be prevailing by a court of law.

Memorandum of Understanding

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13. The title and headings of the sections of this MOU are intended solely for reference and do not modifSr, explain, or construe any provision of this MOU. All references to sections and recitals refer to the sections and recitals of this MOU. In construing this MOU, the singular form shall include the plural and vice versa. This MOU shall not be construed as if it had been prepared by one of the parties, but rather as if both parties have prepared the MOU with the assistance of independent legal counsel for each.

14. This MOU constitutes the entire agreement between the parties. There are no oral agreements which are not expressly set forth in this MOU.

15. All persons executing this MOU on behalf of a party warrant that they have the authority to execute this MOU on behalf of that party.

16. The attachments to this MOU are a part of this MOU and are incorporated into it by this reference.

17. This MOU shall be governed by, and construed and enforced in accordance with, the laws of California.

IN WITNESS WHEREOF, the parties have executed this Memorandum of Understanding as of the day and year first above written.

I/I
Memorandum of Understanding

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EXHIBIT A

__________
2005
ATTEST: PAMELA MILLER, ATTEST:
lerk of the Board of Supervisors
By: £41M
_________________________________
(Signature)
APPROVED 2’’c

BOARD OF SUWRVTSORS

COIJNTI OF NAPA
PAMELA A. MILLER
•CLERK OF THE BOARD
./44liZ3 Deoutv
APPROVED AS TO FORM:

ROBERT WESTMEYER
Napa County Counsel
By: e-signature by Robert Paul
APP VED AS TO FORM:

City Attorney
Memorandum of Understanding

(Type name and title)
Budget Code:________

COIJNTYOFNAPA

BY LU VU
Name: Diane Dillon
Title: Chair, Board of Supervisors
Date:
______
CITY OF NAPA:
-LQQ
‘7
(Signature)
JILL TECHEL. Mayor
(Type name and iitk)
PAMYLA MEANS, City Clerk
(Type name and 111k)
COUNTERSIGNED:
(Signature) V
JED CHRISTENSEN. Finance Director
(Type name and title)
7 1088198.9
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EXHIBIT A

LIST OF ATTACHMENTS
Attachment One
Map of Zone One Service Area
Attachment Two
Definitions
Attachment Three
Clean MRF Recyclable Materials
Memorandum of Understanding

7 1088198.9
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EXHIBIT A

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Attachment AA
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EXHIBIT A

ATTACHMENT TWO

DEFINITIONS
“Clean MRF Recyclable Materials” means those materials which are to be processed at the Clean MRF areas of the Facility, which are listed in Attachment Three. Clean MRF Recyclable Materials include both Single Stream Recyclables and Source Separated materials listed in Attachment Three.
“Contamination” means materials which are not specified in the definition for Yardwaste or listed as acceptable on Attachment Three for Clean MRF Recyclable Materials. For example, plastics would constitute Contamination if delivered to the Facility in a load of Yardwaste and tree trimmings would constitute Contamination if delivered to the Facility in a load of Clean MRF Recyclable Materials.
“Food Waste” means surplus, spoiled or unsold food, such as vegetables and culls, as well as plate scrapings.
“Single Stream Recyclables” means materials collected after having been separated from municipal solid waste (e.g., garbage or refuse) by a residential or commercial/business customer, consisting of a mixture of some or all of the materials listed in Attachment Three.
“Special Recycling Waste” means electronic waste (including cathode ray tubes, computers, televisions, cell phones, stereos, copiers, fax machines and peripherals), tires and bulky goods (including furniture, household or industrial appliances, shipping crates and containers, other large, and bulky or heavy objects not normally discarded on a regular basis at residential, commercial or business establishments). Items listed may be changed as agreed upon by the City Finance Director and the County Executive Officer. “Source Separated” means materials collected after having been separated from municipal solid waste (e.g., garbage or refuse) by a residential or commercial/business customer, consisting primarily of a single material.

Memorandum of Understanding

1088198.9
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EXHIBIT A

“Yardwaste” means tree trimmings, grass cuttings, leaves, branches and similar organic materials, including vineyard clippings, weeds, tree prunings, bush prunings, plant material, and tree trunks/stumps/branches 6” or less in diameter. It excludes, for example, rocks, dirt, plastic bags, municipal solid waste, Single-Stream Recyclables, pet waste, Hazardous Waste, and tree trunks/stumps/branches greater than 6” in diameter.

Memorandum of Understanding

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ATTACHMENT THREE

CLEAN MRF RECYCLABLE MATERIALS
Acceptable Materials Examples of Unacceptable
__________________________________
Materials (Contamination)
Newspaper Paper tissues
Phone books Paper towels
Catalogs Paper with plastic coating (i.e., photographs, Magazines label paper)
Brown paper bags Paper with food
Packaging Wax paper
Egg cartons Foil lined paper
White paper Tyvex (non-tearing) envelopes
Colored paper Non-paper bags
Envelopes (windows are not contamination) Plastic liners (i.e., cereal bags) Junk mail Windows
Glossy paper Mirrors
Shredded paper Dishware
Carbonless paper Ceramics
Chipboardlboxboard Light bulbs
Cardboard Florescent tubes
Wrapping paper Toys
Empty aluminum cans Irrigation pipe
Empty tin cans Furniture
Juice containers Styrofoam
Beer containers MSW
Sauce containers Hazardous Waste
Soda cans Hard cover books/manuals
Tuna cans Pyrex materials
Soup cans Fiberglass materials
Loose jar lids
Empty aerosol
Empty glass beverage containers
Empty glass food containers
All glass colors
Empty CRV plastic containers and bottles #1
through #7
Soft cover books/manuals
Milk/juice cartons
_____________________________________
Memorandum of Understanding

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ATTACHMENT THREE

PRODUCER PRICE INDEX CALCULATION TO ADJUST YARDWASTE PRICE The Yardwaste gate fee for calendar year 2009 is twenty-seven dollars ($27.00) per ton. The Yardwaste gate fee for 2010 will be adjusted as of January 1, 2010 by the change in the annual average of the Producer Price Index (PPI) - Finished Goods Less Food and Energy (Series ID WPUSOD 3500) for calendar year 2008 and the annual average for calendar year 2009. The Yardwaste gate fee will be adjusted annually thereafter using the same procedure.

If the final version of the above-described index is not publicly available prior to the first City billing of the calendar year, the City will apply the additional adjustment retroactively to all inbound Yardwaste tonnage received from the beginning of the calendar year. For example, if the appropriate annual average PPI for 2009 is not publicly available until March 1, 2010, the City will invoice for the gate fee adjustments for Yardwaste loads delivered by Northern in January and February 2010, in March 2010.

The percentage change in the level of the stated PPI between the reference period and a subsequent time period is calculated by first determining the index point change between the two periods and then the percentage change. The following example illustrates the computation of the percentage change and adjustment of the Yardwaste gate fee for Northern.

Annual Average PPI (Finished Goods less Food and Energy — Series ID WPUSOD 3500) for current period 116.0
Less Annual Average PPI for previous period 113.3
Equals percentage point change 2.7/
Divided by previous period PPI 113.3
Equals = 0.024
Results multiplied by 100 0.024 x 100
Equals percentage change
Percentage change multiplied by current gate fee $27.00 x 2.4% Equals dollar change $0.65
Current gate fee plus dollar change equals new gate fee $27.00 +$0.65 Equals new gate fee $27.65/ton
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EXHIBIT A

ATFACHMENT FOUR PART A

SAMPLE CALCULATION OF QUARTERLY AVERAGE RECEIVED REVENUE FROM SALE OF MDF RECYCLABLE MATERIALS Average of Quarterly MDF Received Revenue by Material Type for Previous Quarter (e.g., November 21, 2008 through February 20, 2009):, Material/Commodity Gross Received Revenue Buyer Paid Tons Average Received Payment Payment (per Ton) to in Previous Quarter in Previous Received Revenue Percentage Northern for Current Quarter per Ton in Previous per Material Quarter (Jan — Mar 08) Cardboard $200,160.00 divided by 1251 tons = $160.00 per ton X 61 percent = $97.60 per ton Mixed Paper $38,906.25 divided by 375 tons = $103.75 per ton X 61 percent = $63.29 per ton PET Plastic Bottles (CRV) $385,721.70 divided by 195 tons = $1,978.06 per ton X 69 percent $1,364.86 per ton Mixed #1-7 Rigid!
Non-CRV Plastics $90,000.00 divided by 750 tons = $120.00 per ton X 61 percent = $73.20 per ton Aluminum Cans (CRV) $301,278.60 divided by 63 tons = $4,782.20 per ton X 69 percent = $3,299.72 per ton Mixed Glass
Containers (CRV) $2,576.49 divided by 21 tons = $122.69 per ton X 69 percent = $84.66 per ton Clear Glass
Containers (CRV) $8,851.05 divided by 45 tons = $196.69 per ton X 69 percent = $135.72 per ton Clear Film Plastic $37,620.00 divided by 195 tons = $192.92 per ton X 61 percent = $117.68 per ton Colored Film Plastic $3,000.00 divided by 75 tons = $40.00 per ton X 61 percent = $24.40 per ton Covered Electronic
Waste (CEW) $10,800.00 divided by 27 tons $400.00 per ton X 69 percent $276.00 per ton PET Film Plastic Rolls $9,300.00 divided by 31 tons $300.00 per ton 69 percent = $207.00 per ton Computer Hard Drives $480.00 divided by 4 tons - $120.00 per ton X 69 percent = $82.80 per ton Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

ATTACHMENT FOUR PART B

SAMPLE CALCULATION OF MONTHLY AVERAGE MATERIALS REVENUE EXPECTED Assumptions:

A. The Quarterly Average Materials Revenue Received for Quarter #1 for cardboard is $100/ton.

B. The following purchase orders and bookings have been made for sale of cardboard from the Napa MDF during the month of May:

Booking #1: 60 tons of cardboard being sold at $100 per ton (net of all estimated freight, shipping, handling, brokerage, demurrage and other charges).

Booking #2: 100 tons of cardboard being sold at $160 per ton (net of all estimated freight, shipping, handling, brokerage, demurrage and other charges).

Purchase Order: 30 tons of cardboard being sold at $180 per ton (net of all estimated freight, shipping, handling, brokerage, demurrage and other charges).

C. The price in Booking #2 ($1 60/ton) is compared to the Quarterly Average Materials Revenue Received for Quarter #1 ($100/ton). The price has increased by over 20%.

Calculation of Monthly Average Materials Revenue Expected for Cardboard for May:

Step #1. Calculate Total Expected Revenue From Cardboard 60x$100= $ 6,000
lOOx$160=$16,000
30x$180 = $5,400
Total $27,400
Step #2. Calculate Total Tons Sold
Total tons sold = 60 + 100 + 30 = 190 tons
ATTACHMENT FOUR PART B (continued)
Step #3. Calculate Monthly Average Materials Revenue Expected Per Ton For the Month of May for Cardboard
$27,400/190 tons = $144.21/ton
Step #4. The Monthly Average Materials Revenue Expected Per Ton of $144.21/ton for cardboard is used in the calculation in Section 3 for payment to Northern for cardboard instead of the Quarterly Average Materials Revenue Received.

Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

ATTACHMENT FIVE

NAPA MDF OPERATING REGULATIONS
(Updated June 25, 2010)

1. MDF Hours of Operations and Access Policies
a) For general public users of the MDF, the daily hours are from 8:00 a.m. to 4:00 p.m. b) The MDF is closed four days each calendar year (New Year’s Day, Easter Sunday, Thanksgiving Day and Christmas Day).
c) The MDF will close at 3:00 p.m. on major holidays including Martin Luther King Jr. Birthday, Presidents’ Day, Memorial Day, 4th of July, Labor Day, Day after Thanksgiving and at noon on Christmas Eve. Public notices will be posted and sent out to jurisdictional users. d) For commercial compost and other outbound organics (e.g., wood chips, yardwaste overs, etc.), the MDF may accept vehicles from 6:15 a.m. until 4:00 p.m. This restriction parallels the current permit requirements and operational considerations for the composting and wood processing areas.
e) For commercial users (NRWS/NCRWS & jurisdictional customers) of the clean Materials Recovery Facility (MRF) and source separated construction and demolition materials (C&D), the MDF can accept vehicles for offloading from 6:15 a.m. through 4:00 .p.m. f) For commercial users of the MRF and C&D areas at the MDF that intend to be loaded with outbound materials, the MDF will accept vehicles between the hours of 6:15 a.m. and 4:00 p.m.

2. Gatehouse and Wei2hscale Policies
a) All inbound loads for processing must be weighed (including loads for transfer only). b) With the exception of compost purchased by self-haul users, all outbound loads must also be weighed.
c) All vehicles must check in with scalehouse attendant when entering or leaving MDF. The only exception to this rule is inbound NRWS/NCRWS or jurisdictional users that have an approved tare weight loaded into the scalehouse tracking software — these inbound users may check prior to off-loading and are not required to go over the scales again after offloading. d) With the exceptions noted in item b and c above, all vehicles (both inbound and outbound users) must check in with scalehouse attendant to establish an empty tare weight and loaded gross weights. NO VEHICLE WILL BE ALLOWED TO LEAVE THE MDF WITH A GROSS WEIGHT EXCEEDING 80,000 LBS.
e) Outbound loads containing more than one type of material must have each material weighed separately (i.e., vehicle must weigh after loading each type of material). 0 Outbound disposal residue from MDF must be separately weighed by processing area. g) The universal weighing requirements described in 2a through 2f above may be altered or amended periodically by the City is necessary for compliance with permit regulations.

3. MDF Traffic Flow & Load Check Provisions
a) MDF spotters must be available to direct customers where to deposit loads, and where to pick up materials. Spotters must be able to speak English.
b) Spotters are to observe loads of materials as they are discharged from vehicles at each processing area for hazardous materials and contamination that exceeds limits c) As a general rule, customers should be directed to take the oldest compost material first. 1 Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

4. Safety & Material Storage Provisions
a) Except for personnel operating or feeding the shredder, no person (employee, customer, or City personnel) is allowed within 30 ft of the shredder when it is operating. b) All users of MDF will treat employees of the City and NRWS with courtesy and respect at all times and respond to direction from MDF staff accordingly. Any user or customer that does not comply with this policy may be asked to leave the MDF premises immediately and may be prevented from future access and use privileges at the MDF. c) Cleanliness
a. All areas of the MDF are to be swept daily.
b. Street frontages are to be cleaned at least twice per week. c. Materials are to be stored to minimize nuisance, health, and safety problems. 2 Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

ATTACHMENT SIX

CALCULATION OF AVERAGE PER TON MARKET VALUE FOR DRTS PRE-SORTED

MIXED RECYCLABLE MATERIALS
STEP 1: Assume the characterization results described in Section 3 E are as follows:
#6 Plastics 5 3.5%
#7 Plastics 19%
Tin Cans 27%
Residue 0.5%
Assume the Quarterly Average Materials Revenue Received for these materials is as follows:
#6 Plastics $60.98/ton
#7 Plastics $71 .07/ton
Tin Cans $52.00/ton
STEP 2: Calculate the Average Per Ton Market Value by multiplying the percentage of each material by the Quarterly Average Materials Revenue Received for that material. #6 Plastics $60.98 x 0.535 = $32.62/ton
#7 Plastics $71.07 x 0.19 = $13.50/ton
Tin Cans $52.00 x.27= $14.04/ton
STEP 3: Add the resulting values for each material in STEP #2. #6 Plastics $32.62/ton
#7 Plastics $13.50/ton
Tin Cans $14.04/ton
Total $60.16/ton
STEP #4: The result is the Average Per Ton Market Value of $60.16/ton. 3 Attachment AA
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EXHIBIT A

ATTACHMENT SEVEN

CALCULATION OF PAYMENT TO OR FROM NORTHERN FOR DRTS PRE-SORTED

MIXED RECYCLABLE MATERIALS
PART A

CALCULATION OF PAYMENT TO NORTHERN
Follow the steps listed below to complete the calculation of the amount of the payment per ton to or from Northern for DRTS Pre-Sorted Mixed Recyclable Materials. Two sample calculations follow the list of steps for completing the calculation. The first sample shows a calculation resulting in payment to Northern from the City for the materials. The second sample shows a calculation resulting in Northern owing a payment to the City for processing the materials due to the lower Average Per Ton Market Value of the mixed materials.

STEP 1: Complete the following background work to obtain values needed for the calculation:

A. Establish the Average Per Ton Market Value for the DRTS Pre-Sorted Mixed Recyclable Materials by performing the characterization described in Section 3 E and the calculation in Attachment Six.

B. Establish the percent of residue in the DRTS Pre-Sorted Mixed Recyclable Materials by performing the characterization described in Section 3 E.

C. Obtain the current per ton cost to the City for disposal of residue at the DRTS.

D. Obtain the current NRWS processing fee for tons over baseline (as adjusted for inflation) as described in Section 12.05 of the agreement between the City and NRWS (City agreement No. 8687) dated December 7, 2004.

STEP 2: Begin the calculation by reducing the Average Per Ton Market Value by the shrinkage due to residue to establish the net per ton average market value. Subtract the percentage of residue from 100, then convert the result to a percentage (e.g. .99). Multiply the Average Per Ton Market Value by this percentage.

STEP 3: Calculate the City’s 70% share of the market value by multiplying the net per ton average market value by 0.7.

STEP 4: Calculate the .cost to the City for residue disposal by multiplying the per ton disposal cost at the DRTS times the percent of residue in the DRTS Pre-Sorted Mixed Recyclable Materials. Subtract the cost of residue disposal from the result of Step #3.

STEP 5: Subtract the current NRWS over baseline per ton processing fee from the result of Step #4.

STEP 6: Calculate the City’spayment (the City receives 9% of the net per ton average market value of the materials) by multiplying the net per ton average market value (calculated in Step 2) times

0.09. Subtract the result from the result of Step #5.

STEP 7: The result of Step #6 equals the per ton payment to Northern or the per ton payment from Northern to the City for processing the materials.
4 Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

SAMPLE CALCULATION #1
STEP 1: Assume that the following data was obtained for use in the calculations:

A. The Average Per Ton Market Value for the DRTS Pre-Sorted Mixed Recyclable Materials per the characterization is $130 per ton.

B. Residue equals 0.5% per the characterization.

C. The City’s current cost of residue disposal at the DRTS is $56.00 per ton.

D. The current NRWS processing fee for tons over baseline is $61 per ton.

STEP 2: 100 — 0.5 (0.5% residue) = 0.995 0.995 x $130/ton $129.35/ton STEP 3: $129.35/ton x 0.7 (City’s 70% share of revenue) = $90.55/ton STEP 4: $56/ton (DRTS tip fee) x 0.005(percent of residue disposal) = $0.28/ton $90.55/ton - $0.28/ton = $90.27/ton
STEP 5: $90.27/ton - $61.00/ton (NRWS over baseline processing fee) = $29.27/ton STEP 6: $129.35 x 0.09 (City’spayment equal to 9% of the net per ton average market value from Step #2) $11.64/ton
$29.27 -$11.64 = $17.63/ton
STEP 7: Payment to Northern = $17.63/ton
SAMPLE CALCULATION #2
STEP 1: Assume that the following data was obtained for use in the calculations:

A. The Average Per Ton Market Value for the DRTS Pre-Sorted Mixed Recyclable Materials per the characterization is $90 per ton.

B. Residue equals 0.5% per the characterization.

C. The City’s current cost of residue disposal at the DRTS is $56.00 per ton.

D. The current NRWS processing fee for tons over baseline is $61 per ton.

STEP 2: 100 — 0.5 (0.5% residue) = 0.995 0.995 x $90/ton = $89.55/ton STEP 3: $89.55/ton x 0.7 (City’s 70% share of revenue) = $62.69/ton STEP 4: $56/ton (DRTS tip fee) x 0.005(percent of residue disposal) = $0.28/ton $62.69/ton - $0.28/ton = $62.41/ton
STEP 5: $62.41/ton - $61 .00/ton (NRWS over baseline processing fee) = $1.41/ton STEP 6: $89.55 x 0.09 (City’spayment equal to 9% of the net per ton average market value from Step #2) = $8.06/ton
$1.41 -$8.06 =- $6.65/ton (negative $6.65/ton)
STEP 7: Payment to City from Northern = $6.65/ton
5 Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

ATTACHMENT SEVEN
PART B

CHANGE IN CALCULATION IF CITY CEASES TO PAY FOR NAPA MDF RESIDUE

V DISPOSAL
In the event that the City ceases to pay for the disposal of residue from the Napa MDF in the future, the above-described calculation shall be modified by omitting STEP #4. All other parts of the calculation shall remain the same.
6 Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

ATTACHMENT EIGHT

REQUIRED FORMAT FOR WRITTEN INFORMATION ON EACH LOAD DELIVERED TO THE NAPA MDF
Northern Recycling - Devlin Road Transfer Station
Date:

Truck #:

Driver:
(Circle area and material)
Buy Back Center: ALUM CRV Aluminum Cans
PET CRV #1 PET Plastic Bottles
HDPENAT CRV #2 HDPE Natural Plastic Bottles
HDPEMIX CRV #2 HDPE Colored Plastic Bottles
MIXCONT CRV #3-7 Plastic Bottles
METAL CRV Bimetal Cans
GLASSCL CRV Clear Glass Bottles
GLASSBR CRV Brown Glass Bottles
GLASSGR CRV Green Glass Bottles
CARD BALED Cardboard
CARD #12 Cardboard #12
LDPENAT BALED Clear Film Plastic
LDPEMIX BALED Colored Film Plastic
OTHER
_____________________
OTHER
_____________________
Re-use Area: CARD Cardboard
CARD #12 Cardboard #12
ELEC Electronics
MXPLAS Mixed Rigid Plastics
NEWS Newspaper
PAPERMX Mixed Paper
TiN Tin Cans
OTHER
____________________
OTHER
____________________
C&D Sorting Area: CARD Cardboard
CARD #12 Cardboard #12
PAPERMX Mixed Paper
MXPLAS Mixed Rigid Plastics
LDPEMIX Mixed Plastic Film
MXCONT Mixed Bottles and Cans
GLASS Mixed Glass Bottles
METAL Scrap Metal
OTHER
____________________
OTHER
___________________
Please attach yellow and pink weight tickets
If any “Other” handwritten materials are included on this form, copy the form and forward it to the City Materials Diversion Analyst for review.
7 Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

ATTACHMENT MNE

SCHEDULE FOR PREPARATION OF QUARTERLY AVERAGE MATERIALS REVENUE

RECEIVED BY CITY AND INVOICING BY NORTHERN
For Materials Use the Quarterly City Receives All City Provides Northern Delivered During Average Pricing Data Average Submits First This Quarter Materials From MDF Materials Invoice Using Revenue Operator for Revenue Pricing for the
Received Pricing Prior 3 Month Received Prices New Quarter For This Period Period to Northern for
the New Quarter
January 1 — March August 21 — By December 20 By January 10 By January 15 31 November 20
April 1 — June 30 November 21 — By March 20 By April 10 By April 15 February 20
July 1 — Sept. 30 February 21 — May By June 20 By July 10 By July 15 20 October 1 — May21 — August By September20 By October 10 By October 15 December 31 20
8 Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

FIRST AMENDMENT TO

AGREEMENT BETWEEN THE CITY OF NAPA AND

NORTHERN RECYCLING OPERATIONS AND WASTE SERVICES, LLC

FOR PROCESSING OF RECYCLABLE MATERIALS
(CITY AGREEMENT NO. 2010-147)
,<711
THIS FIRST AMENDMENT is entered into as ofthe~aay of/)_ _,._t!f:wt6, by and between the CITY OF NAP A, a charter city and municipal corporation (~e:vreferred to as the "City") and NORTHERN RECYCLING OPERATIONS AND WASTE SERVICES, LLC, a California limited liability company (hereinafter referred to as "Northern").

RECITALS
A. The City and Northern entered into an agreement for the processing of recyclable materials on July 6,2010 (City Agreement No. 2010-147i hereinafter referred to as "Agreement").

B. Pursuant to the Agreement, Northern agreed to deliver certain recyclable materials received at the Devlin Road Transfer Station to the City's Materials Diversion Facility for processing and marketing.

C. The City's Materials Diversion Facility is operated by Napa Recycling and Waste Services, LLC (hereinafter "NRWSi') pursuant to a contract with the City dated December 7,2004 (City Agreement No. 8687, hereinafter "'NRWS Contract").

D. ·11ie prices and charges described in Section 3 of the Agreement are inextricably linked to, and dependent upon, the revenue sharing arrangements between the City and NRWS for the sale of recyclable materials, contained in the NRWS Contract, as amended.

E. ·Therefore, the tenn of the Agreement was designed to match that of the NR WS Contract, which was originally scheduled to terminate December 31, 2015.

F. On April 16, 2014. the City exercised its right to extend the NR WS Contract by a period of one year, to December 31, 2016.

G. Accordingly, the parties now desire to extend the term of the Agreement for a period of one year so that the Agreement's term continues to correspond to the term of the NR WS Contract.

H. In May 2005, the City executed a Memorandum of Understanding ("MOU!l) with the County of Napa (City Agreement No. 8782) to process Recyclable Materials.and Yardwaste collected 'in County unincorporated areas by Napa County Recycling and Waste Services, LLC ("NCR WS") for a period of ten (10) years. The pricing for Yardwaste delivered by Northern to the Napa MDF pursuant to the Agreement is Page I of6
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

calculated based upon the Yardwaste pricing in the MOU. The MOU was included as Attachment Two to the Agreement in order to disclose certain concepts relating to payments associated with Clean MRF Recyclable Materials and Y ardwaste. Since that time, the MOU has been amended and extended. The parties now desire to delete Attachment Two and instead incorporate those concepts relating to payments associated with Clean MRF Recyclable Materials and Yard waste 'into the body of the Agreement.

I. The parties further desire to add pricing and terms for delivery of Food Material by Northern to the City's Materials Diversion Facility for processing.

NOW, THEREFORE, in consideration of the mutual promises contained in this First Amendment, and for other good and valuable consideration, the parties . agree as follows:

SECTION 1. MATERIALS TO BE DELIVERED AND PROCESSED ·
Section 1 B of the Agreement is hereby deleted and replaced with the following:
"B. Yardwaste and Food Material.

Northern is not required to deliver Yardwaste from the DRTS for composting at the Napa MDF.

However, the City will accept Yardwaste from Northern provided (1) there is sufficient capacity at the Napa MDF and (2) such delivery will not interfere with City and the Napa MDF operator's compliance with all applicable pennits ·and state and local regulations.

At Northeni's request the City agrees to accept up to four thousand (4,000) tons per year of Food Material from Northern as long as such delivery does not interfere with City and the Napa MDF operator's compliance with all applicable pennits and state and local regulations . Fpod Material in excess of four thousand (4,000) tons per year may not be delivered . without prior written permission from the City:"
SECTION 2. TERM
Section 5 of the Agreement is hereby deleted and replaced with the following:
"The tcnn of this Agreement shall begin on July 6, 20 IO and end on December 31, 2016." SECTION 3. IN CORPORA TE CONCEPTS SET FORIB IN ATTACHMENT TWO

INTO THE BODY OF THE AGREEMENT, DELETE ATTACHMENTS TWO AND

THREE,AND MODIFY REFERENCES THERETO AND UPDATE SPECIFIC PER

TON PRICES
A. Section 3A of the Agreement is hereby deleted and. replaced with the following:

Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

"A. Yardwaste and Food Material.
l) Yardwaste. Northern agrees to pay the City thirty.three dollars ($33.00) per ton for Yardwaste delivered to the Napa MDF during calendar year 2016. This is based upon the current price paid by the County of Napa pursuant to the MOU between the City and the County of Napa dated May 3, 2005 (as amended on July 21, 2015) plus one dollar ($1.00) per ton. This price difference is in recognition of the obligation of the City set forth in Section II Part 10 of the MOU that states:-'·'The City will not enter into a contract with any third party allowing it to deliver Clean MRF Recyclable Materials and Y ardwaste on terms that are more favorable than those extended.to the County in Section II.£..A1 taken together." In the event the term of this Agreement is extended past December 31, 2016, the minimum price charged ·to Northern for Yardwaste delivered to the Napa MDFwill increase annually beginning January 1, 2017 as follows:

January 1,.2017
January l, 2018
January l, 2019
$34.00/ton
$35.00/ton
$36.00/ton
In addition to the prices described herein, 'it is likely the City·will further increase the price for processing Yardwaste within twelve to thirty.six months when the City's planned Covered Aerated · Static Pile (CASP) composting system is installed and becomes fully operational at the Napa MDF. In that event, the Yardwaste processing price :charged by the City to Northern shall be the total per ton price charged to the County of Napa plus one dollar ($ I .00) per toil.·· 2) Food Material. Northern agrees to pay the City forty-five dollars ($45.00) per ton for Food Material delivered to the Napa MDF during calendar year 2016. In the event this Agreement is extended past December 31, 2016, the minimum price charged to Northern for Food Material delivered to the Napa MDF will increase annually beginning January 1, 2017 as follows:

January I, 2017
January 1, .201 8
January 1, 2019
$46.00/ton
$47.00/ton
$48.00/ton
In addition to the prices described herein, it is likely the City will further increase the price for processing Food Material within twelve to thirty-six months when the City'.s planned Covered Aerated Static Pile (CASP) composting system is installed and becomes fully operational at the Napa MDF."
B. Attachments Two and Three are hereby deleted. The description of Attachments Two and Three in the List of Attachments following the signature page is hereby amended to read as follows:
"Attachment Two. Not Used''
''Attachment Three. Not Used"

Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

SECTION 4. DEFINITIONS
Attachment One is hereby amended by revising the definition of "Contamination'' as . follows and by adding a new definition for "Food Material":
"Cont~natjon" means I)Jat~als ·mixed in with Pre-Processed, Market-Ready Recyclable Materials, Pre-Processed, Baler-Ready Recyclable Materials, Y ardwaste, Food Material, Covered Electronic Waste. Electronic Waste or ORTS New Materials that would reduce the quality and value of the materials to end markets. For example, the presence of glass in a load of mixed paper or in a load of Food Material would be considere4 Contamination. The level of unacceptable Contamination is described .in Section 6(A) of this Agreement.'' "Food Material" means source separated sutplus, spoiled or unsold food that is acceptable to City for composting including, but not ·limited to, vegetables, meat and bones, seafood, dairy products, eggs and eggshells, rice, beans, bread, pasta, coffee grounds, and plate scrapings of these materials. "Food Material" also ·includes soi.led paper products that are acceptable to City for composting including paper towels, tissue products, paper napkins, paper plates and cups, coffee filters, tea bags, waxed paper, butcher paper, paper take-out boxes and containers, greasy pizza boxes, paper bags, cardboard, and wax-coated cardboard produce boxes. "Food Material" does J:lOt include :polystyrene, diapers, kitty litter, aluminum foil, foil-lined food·wrap, metals, photogr~hjc paper; blue-line or blueprint paper, plastic-backed paper, paper containing any plastics, plastics or glass, all of which are considered Contamination." SECTION 5. CONTAMINATION OF LOADS
Paragraph A '·Contamination of Loads" of Section 6 "Other Agreements" is hereby amended by adding the following subparagraph and renumbering the final subparagraph. "4) Food Material delivered to the Napa MDF wlrich contain five percent (5%) or more by weight ofmaterials constituting Contamination that will need to be.removed before the Foocl Material can be processed and the resulting product(s) marketed. 5) For ·any load containing Hazardous Waste."
New subpart (iii) ·is hereby added to Paragraph A as follows:
'
"(iii) direct the operator of the Napa MDF to reject loads· of Food Material that ~ontain less ~ five percent (5%) Contaniin3:tion. if,. in the sole discretion of City, the load contain~ Contaminants su~h as rocks or glass that are considered a prohibitive material because the matenals could damage the pre-processing equipment and/or re~_lt. in poor q~ity. _or ~arke~le c~~post. If, despite notice from City to Northern, such proh101ttve Contammatlon 1s found m additional

Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

loads, the City reserves the right to cease accepting Food Materials from Northern within twenty­ four (24) hours of providing written notice to Northern." The paragraph immediately following new subpart (iii) is hereby amended to read as follows:
''The City or its designee will provide notification of Contaminated loads to Northern within twenty-four (24) hours of either·the City's discovery of the Contamination or notification to the City from its contract operator of discovery of the Contamination.,, All other tex.t of Paragraph A remains unchanged .

SECTION 6. FULL FORCE AND EFFECT
Except as expressly modified by this First Amendment-, all terms ·and conditions contained in the Agreement dated July 6, 2010 ·shall remain in full force and effect.

Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

•'
IN WITNESS WHEREOF, City and Northern have executed this First Amendment as of the day and year first above written.

CITY OF NAPA:·
Jacques R. LaRochelle, Public Works Director
(Type Name and Title)
Dorothy Roberts, City Clerk
(I'ype Name and Title)
COUNTERSIGNED:
~~ (Signature) :

Desiree Brun, City Auditor
(I'ype Name and Title)
~ / Michael Barrett, City Attorney

NORTHERN RECYCLING
OPERATIONS· AND WASTE

SERVICES, LLC, A CALIFORNIA
LIMITED LIABILITY COMPANY*:
(Fax l.D. Number)
By~ (Si~
Greg Kelley, Managing Member
(Print Name and Title)
By:. ___________ _
(Signature)
(Print Name and Title)
•unless corporate resolution
delegates an individual to sign
contracts. an agreement with a
corporation shall be signed by the
President or Vice President and the
Secretary or Assistant Secretary of
the corporation. A general partner
shall sign on behalf of a general
partnership. The managing member.
if authorized, may sign on behalf of a
.limited.liability company.

Budget Code(s): SJOOS-34402 (MDF Gate Fees-Revenue Accmmt) SI OOS-58911 (Payment for Material - ExpenditW'e Account)

Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

SECONDAMENDMENTTO

CONTRACTFORTHECOLLECTIONANDTRANSPORTATIONOFMUNICIPALSOLID

WASTE,RECYCLABLEMATERIALS,ANDYARDWASTEANDTHEOPERATIONOFTHE

NAPAMATERIALSDIVERSIONFACILITY
(CITYAGREEMENTNo.8687)
THISSECONDAMENDMENTisenteredintoasofthe6thdayofJuly,2010, byandbetweentheCITYOFNAPA,achartercityandmunicipalcorporation(hereinafterreferred toasthe“City”)andNAPARECYCLING&WASTESERVICES,LLC,aCalifornialimitedliability company(hereinafterreferredtoas“Contractor”)

RECITALS

1.TheCityandContractorenteredintoacontractforCollectionandTransportationof MunicipalSolidWaste,RecyclableMaterials,andYardwasteandoperationoftheNapa MaterialsDiversionFacilityonDecember7,2004(CityAgreementNo.8687,hereinafter referredtoas“Contract”).

2.ThepartiesexecutedtheFirstAmendmenttotheContractonMarch1,2005toreplace sevenconventionaldieselfuelcollectionvehiclesidentifiedintheContractwithseven collectionvehiclespoweredbyenginesusingcompressednaturalgas(“CNG”).

3.ThepartiesenterintothisSecondAmendmentto(a)formalizeagreementsmadeamong thepartiesandanaffiliate ofContractor,currentlyreflectedinasigned“JointSummary Report,”datedApril9,2007,and(b)documenttheparties’agreementsonoperational changesthathaveevolvedsinceContractorcommencedCitycollectionandprocessingat theMaterialsDiversionFacility(“MDF”)onOctober1,2005.

BACKGROUNDTOTHISSECONDAMENDMENT
TheNapaVallejoWasteManagementAuthority(the“Authority”)ownsandcontractsforthe operationoftheDevlinRoadTransferStation(the“DRTS”)locatedadjacenttotheCityofNapa MaterialsDiversionFacility.

TheAuthorityiscomprisedofthefollowingmemberagencies:theCityofNapa;theCountyof Napa;theCityofVallejo;and theCityofAmericanCanyon.TheDRTSservesallofthemember agencies.TheprimaryoperationconductedattheDRTStodatehasbeenthetransferand haulingofmunicipalsolidwastetoalandfill.

TheAuthoritywascreatedbyaJointPowersAgreement,datedMarch17,1993andsignedby eachmember(the“JPAAgreement”).Section6.4oftheJPAAgreementstates:“The AUTHORITYshallnot provideanyrecyclingservicesthatduplicateorcompetewithrecycling servicesprovidedbyanyMEMBER(atthetimetheAUTHORITYdeterminestoprovidenewor expandedrecyclingservices)withoutconsentoftheMEMBER.”Inaddition,Section14.05,“No AffiliatedEntity,”oftheContractincludesasimilarstatement:“Contractorwillnotformoruseany AffiliatedEntitytoperformanyoftheservicesor activitieswhichContractorisrequiredorallowed toperformunderthisContract,otherthanasasubcontractorapprovedbyCityunderSection

14.04.”
Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

OnSeptember29,2006,theAuthorityissuedaRequestforProposalsforoperationoftheDRTS foratenyearperiodbeginningJuly1,2007(“AuthorityRFP”).TheAuthorityRFPrequiredthe operatoroftheDRTStodivertaminimumoftwelvepercentoftheincomingtonnagefor recycling,compostingandreuse.

Anewaffiliatecompany,NorthernRecyclingOperationsandWasteServices,LLC(“Northern”) wasformedbysubstantiallythesamepersonswhoownandcontrolContractor,forthepurpose ofrespondingtotheAuthorityRFP.NorthernsubmittedaproposaltotheAuthorityinDecember 2006whichcontemplatedusingsomeofthesamepersonnelandequipmentthatwerealready contractually committedtotheCitypursuanttotheContract.Inaddition,Northernproposedto divert twenty-fivepercentoftheincomingtonnageinyearoneofthe operatingagreement,thirty percentbyyearthree,andthirty-fivepercentbyyearfive.Thislargeproposedincreasein diversion hadthepotentialtoputtheDRTSoperationsindirect competitionwiththeCity’s MaterialsDiversionFacilityforprocessingrecyclablematerialsfromtheNapaValley-Vallejo wasteshed.

TheAuthorityselectedNortherntobetheoperatoroftheDRTSforafifteenyearperiod beginningJuly1,2007.TheselectionofNorthernasoperatoroftheDRTSunderthetermsofits contractwiththeAuthoritycreatedchangedconditionsthat werenotcontemplatedbytheterms oftheContractbetweentheCityandContractor.Severalofthesechangescould,ifnot addressedinthisSecondAmendmenttotheContract,harmtheCity.

Subsequently,theCity,ContractorandNorthernexchangedwrittencorrespondenceandhelda seriesofmeetingstodiscussmethodstoaddresstheCity’sconcerns.TheseresultedintheJoint SummaryReportwhichwassignedbytheCity,theContractorandNorthernonApril9,2007and presentedtothe NapaCityCouncilonApril17,2007.Atthismeeting,CouncildirectedCitystaff toincorporatetheagreementsmadeintheJointSummaryReportintoaSecondAmendmentto theContract.

OnMarch19,2010theAuthorityapprovedanamendedandrestatedagreementwithNorthern thatmodifiedtheAuthority’sagreementwithNorthern,includingreducingtherequireddiversion levelfromtwentyfivepercenttofourteenpercentoftheinboundtonnageattheDRTS.

Inadditiontothe backgrounddiscussedabove,thisSecondAmendmentincorporatesseveral modificationstotheContractinordertodocumentminorchangesinoperationsthat theparties haveinformallyagreeduponsinceOctober2005.

NOW,THEREFORE,inconsiderationofthemutualpromisescontainedinthisSecond Amendment,andforothergoodandvaluableconsideration,thepartiesagreeasfollows:

SECTION1.RECEIPTANDCHARACTERIZATIONOFMATERIALS
Article6oftheContractisamendedasfollows:

1.ThefollowingnewparagraphisaddedattheendofSection6.01:
“ContractorshallcomplywithallMDFOperatingRegulationsassetforthinAttachment EE,whichmayberevisedfromtimetotimebytheCity.”
The newAttachmentEEisattachedheretoandincorporatedhereinasExhibit6.

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Attachment AA
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EXHIBIT A

2.ThefirstparagraphofSection6.03—ReceiptofRecyclableMaterialslYardwasteis amendedbyaddingthefollowingclausesat theendoftheparagraph:
“,(5)entitieswithwhichtheCityhasenteredintoacontractforuseoftheMaterials DiversionFacility,and(6)anyothermaterialsdeliveredtotheMaterialsDiversionFacility bythepublic,privatebusinesses,otherhaulersandotherpublicagencies.”

3.ThefollowingnewSection6.03.01isadded:
“Section6.03.01-ReceiptandProcessingofMaterialsfromDevlinRoadTransfer Station
A.Contractorshallacceptforprocessingthefollowingmaterialsdeliveredfromthe DevlinRoadTransferStation(“DRTS”)pursuanttotheCity’sAgreementwith NorthernRecyclingOperationsandWasteServices,LLC(Northern)datedJuly6, 2010,attachedheretoasAttachmentAAandincorporatedhereinbythis reference,:(1)Yardwaste,(2)RecyclableMaterials,and(3)DRTSNewMaterials.

B.YardwastewillbedeliveredtotheCompostingArea.Pre-processed,Baler-Ready RecyclableMaterials,Pre-Processed,Market-ReadyRecyclableMaterials (includingcarpetunderpadding),DRTSPre-SortedMixedRecyclableMaterials, andDRTSNewMaterialswillbedeliveredtotheCleanMRF.

C.YardwastedeliveredfromtheDRTSandDRTSPre-SortedMixedRecyclable Materials(includingDRTSPre-SortedMixedRecyclableMaterialsdeliveredunder emergencycircumstancesasdescribedintheCity-Northernagreement, AttachmentAA)willbeincludedinthetonnageusedtocalculateContractor’s eligibilityforanAdditionalPaymentunderSection12.05,andtheamountofany suchAdditionalPayment.Pre-Processed,Baler-ReadyRecyclableMaterials,Pre Processed,Market-ReadyRecyclableMaterials,andDRTSNewMaterials deliveredfromtheDRTStotheCleanMRFwillnotbeincludedinthetonnage usedtocalculateContractor’seligibilityforanAdditionalPaymentunderSection

12.05northeamountofanysuchAdditionalPayment.

However,Pre-Processed,Baler-ReadyRecyclableMaterials,Pre-Processed, Market-ReadyRecyclableMaterials,andDRTSNewMaterialsdeliveredfromthe DRTSwillreducetheMaximumCapacityoftheCleanMRFandContractor’s obligationtoprovideprocessingcapacityisaccordinglyreduced.Forexample,if 1,500TonsofPre-Processed,Baler-ReadyRecyclableMaterials,Pre-Processed, Market-ReadyRecyclableMaterials,andDRTS NewMaterialsaredeliveredfrom theDRTSincalendaryear2010,theywillnotbeincludedinthe calculationsused indeterminingContractor’seligibilityforanAdditionalOverBaselineProcessing PaymentunderSection12.05forthatyear,buttheMaximumCapacityofthe CleanMRFforthatyearwillbereducedfrom46,800tonsto45,300tons.

D.CharacterizationoftheMaterials.ThequantityofDRTSPre-SortedMixed RecyclableMaterialsdeliveredbyNorthernfromtheDRTStotheNapaMaterials DiversionFacilityisnottoexceedtenpercent(10%)ofthetotaltonsdeliveredby Northerninasinglecalendaryearandresidueinthesematerialsisnottoexceed onepercent(1%).AcharacterizationoftheDRTSPre-SortedMixedRecyclable MaterialswillbeconductedbytheCityusinglaborprovidedbyContractor pursuanttoAttachmentF,Section6.8.TheCitywillprovideindependent oversightofthesortusingCityemployees,independentcontractors,oragentsof Page3
Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

CitytodeterminetheAveragePerTonMarketValueofthematerialandthe percentresidueremainingafterthematerialissorted.TheCityshallprescribethe samplingtechniqueandprotocol,thesizeandnumberofsamples,thesorting methodology,themethodforweighingsortedmaterials,themethodforinputting thedataandtheprotocolusedtocalculatethefollowing:(i)thepercentofeach materialinthemix,(ii)theQuarterlyAverageMaterialsRevenueReceivedfor eachtypeofmaterialinthemix,and(iii)thepercentresidue.TheCityenvisions thatthecharacterizationwillbeconductedbycollectingsamplesofthemixed materialsinsampleboxesandmanuallysortingthematerialsuchthatthesorting beltsattheNapaMaterialsDiversionFacilityarenotimpacted.TheCityreserves therighttochangethesamplingmethodologyandprotocol,andalsoto utilizeor substituteanysortinglaboritchooses(includingbutnotlimitedtoCityforces,third parties,independentcontractors,internsandotheragentsoftheCity)toconduct thecharacterization.OncetheAveragePerTonMarketValueofthematerialmix isestablished,additionalcharacterizationsmaybeconductedatfrequencies determinedatthesolediscretionoftheCity.Contractorwillcooperatefullywith CityinconductingallcharacterizationsofDRTSPre-SortedMixedRecyclable Materials.IfContractorhasalreadyperformedthecharacterizationsrequiredby AttachmentF,Section6.8forotherCity-directedpurposes,Citymayconduct additionalcharacterizationsusingnon-Contractorlabor,ormaycompensate Contractorforperformingadditionalcharacterizations.ThenumberofTonsof materialdeliveredfromtheDRTSwillbebasedsolelyonMaterialsDiversion Facilityscalehouserecords.

E.Additionaltermsrelatedtotheprocessing,deliveryandpricingofYardwasteand Pre-Processed,Baler-ReadyRecyclableMaterials,Pre-Processed,Market-Ready RecyclableMaterials,DRTSPre-SortedMixedRecyclableMaterials,andDRTS NewMaterialsarecontainedintheagreementbetweentheCityandNorthern, AttachmentAA.ContractorwillcooperatewithCityandNortherntoaccomplish thepurposeofthatagreement.ContractorandAffiliatedEntitieswillnotemploy anyartifice,businessstructureorotherstratagemtocircumventorunderminethe spiritandpurposeofthisContractorthespiritandpurposeoftheCity-Northern agreement.NothingintheCity-Northernagreementisintendedtorelieve ContractorofitsdutiesandresponsibilitiesdescribedinthisContracttomarketthe MaterialsDiversionFacilityandtoencouragenewandrepeatcustomerstobring materialsdirectlytotheMaterialsDiversionFacility.

F.InorderfortheCitytopayNorthernformaterialsdeliveredtotheMaterials DiversionFacilitysinceMay1,2008pursuanttoSection4DoftheCity-Northern agreement,ContractorshallprovidetheCitywithaspecialdetailedreportinthe formatshowninAttachmentDD,fortheperiodApril21,2008throughDecember 20,2009.ThereportwillbesubmittedbyContractoronorbeforeAugust16,2010.

ContractorshallalsosubmitasimilarspecialAttachmentDDreportfortheperiod August21throughNovember20,2009onorbeforeAugust16,2010.These reportsshallincludealltheinformationrequiredtobeprovidedinAttachmentDD reports.

AttachmentAA,theCity’sagreementwithNorthern,isattachedheretoandincorporatedherein asExhibit1.

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Attachment AA
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EXHIBIT A

SECTION2.NODUPLICATIONOFBALER
ThefollowingSection6.03.02isaddedtotheContract:
“Section6.03.02—UseofPersonnelandEquipment
ContractorwillnotpermitNorthernoranyotherAffiliatedEntitytouseanyofContractor’s equipmentorpersonneltodeliverYardwasteorPre-Processed,Baler-Ready Recyclable Materials,Pre-Processed,Market-ReadyRecyclableMaterials,DRTSPre-SortedMixed RecyclableMaterials,DRTSNewMaterialsoranyothermaterialsfromtheDRTStothe MaterialsDiversionFacility.

Contractor andallAffiliatedEntities(includingNorthern)agreenottoinstall,provide, lease,oroperateahighcapacity balerthatiscapableofcreatingexportbaleswithinafive (5)mileradiusoftheentrancetotheMaterialsDiversionFacility.Thefive(5)mileradius isshownonthemapattachedheretoandincorporatedhereinasAttachmentBB.

ContractorandAffiliatedEntitiesmay,forotherbusinesspurposes,install,provide,lease andoperatesmallbalers,whicharelimitedtoavertical“downstroke”typeofbalerwitha singleramand thatwouldproducebalesnotexceeding800poundseach(assuming corrugatedcardboardisthematerialsbeingbaled),atprivatebusinessesaslongasallof thefollowingconditionsaremet:

A.AlloftheRecyclableMaterialsandallothermaterialsbaledaredirectly deliveredtotheMaterialsDiversionFacilityforfinalmarketing.

B.IfthebaledmaterialsaredeliveredtotheMaterialsDiversionFacilitybyNapa CountyRecyclingandWasteServicesLLC(“NCRWS”),oritssubcontractor, pursuanttoNCRWS’scollectioncontractwiththeCountyofNapadatedMay 3,2005,CountyofNapaAgreementNo.6431,thetonsofsuchbaled
materialsshallbedeliveredtotheCleanMRFAreaforprocessingandshallbe includedinthetonnageusedtocalculateContractor’seligibilityforan AdditionalPaymentunderSection12.05andtocalculatetheamountofany suchpayment.ThepricingcontainedintheCity’sMemorandumof
UnderstandingwiththeCountyofNapadatedMay3,2005(CityAgreement No.8782,CountyofNapaAgreementNo.6430)shallapplytothisbaled material.

C.Thebalersarenotusedtobaleanymaterialscommittedtobedeliveredby NorthernfromtheDRTStotheMaterialsDiversionFacilitypursuanttothe agreementbetweentheCityandNorthern,AttachmentAA.

D.Thebalers arenotusedtobaleanyDRTSNewMaterialsasdefinedinthe agreementbetweentheCityandNorthern,AttachmentAA,whichtheCityhas arightoffirstrefusaltobale and market,unlesstheCityhasprovidedwritten noticetoNorthernoftheCity’srefusaltobaleandmarketaspecificmaterial.

E.Thebalerisnotusedtoinanywaycircumvent,undermineordefeatthe purposeofthethisContractortheagreementbetweentheCityandNorthern, AttachmentAA.

ContractorhassubmittedalistofthesmallbalersinstalledoroperatedbyAffiliated Entitiesatprivatebusinesseswithinafive(5) mileradiusoftheentrancetotheMaterials DiversionFacility,attachedheretoandincorporatedhereinasAttachmentCC.Contractor Page5
Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

shallupdatethelistandsubmitanewlisttoCityonJuly1,October1,January1andApril 1ofeachyearoftheTerm.TheContractorwillsubmitthelisteveniftherehavebeenno additionsordeletionstothelistsincethepriorlistwassubmitted.

Contractorshallmakethedecisionastowhethertore-baleanybaledmaterialsreceived at theMaterialsDiversionFacilityortomarketthebaledmaterialdirectly.Contractorshall makereasonablebusinesseffortsandactingoodfaithtomaximizetherevenuefromthe saleofsuchmaterial.”
AttachmentBB,thefive(5)mileradiusmap,isattachedheretoandincorporatedhereinas Exhibit3andAttachmentCC,thelistofsmallbalerslocatedwithinafive (5)mileradiusofthe MaterialsDiversionFacility,isattachedheretoandincorporatedhereinasExhibit4.

SECTION3.EQUIPMENT
Article7“EquipmentandPersonnel,”Section7.01Generalisamendedbyaddingthefollowing thirdparagraphandnewsubsectionattheendofthesectiontoreadasfollows:
“IfContractorentersintoanyfinancialtransactionswithanAffiliatefortheprovisionof labor,equipment,supplies,services,orcapitalrelatedtothefurnishingofservicesunder thisContract,orforthepurchaseofRecyclableMaterials,thatrelationshipshallbe disclosedtoCity,andinthefinancialreportssubmittedtoCity.Insuchevent,theCity’s rightstoinspect recordsandobtainfinancialdatashallextendtosuchAffiliate.The provisionsofSection14.04shallapplytoanyproposedsubcontractor,whetherthe proposedsubcontractorisanAffiliatedEntityorotherPerson.

A.ManagementandUseofEquipment.

1.ExclusiveuseatMaterialsDiversionFacility.Exceptasexpresslypermitted herein,ContractorshallnotutilizeanyoftheequipmentlistedinAttachmentsK,LandM, oranyequipmentthatContractorisrequiredbythisContracttoprovideinthefuture,for anypurposeotherthanoperationoftheMaterialsDiversionFacility.Saidequipmentshall notbeusedforoperationoftheDRTSbyContractor’saffiliatedcompany,Northern,any operationsofNCRWS,oroperationsbyanyotherAffiliatedEntity.

Equipmentthatshallnotbeusedforanyotherpurposeincludesbutisnotlimitedto:the MaterialsDiversionFacilitywatertruck,forkliftandloader;officeequipment;computers; printingandpostageresources;andcollectionequipmentsuchastrucks,rolloffboxes, carts,andbins.

2.EciuirmentIdentification.AllequipmentprovidedbyContractorforoperations pursuanttothisContract,includingbutnotlimitedtovehicles,carts,rolloffboxes,bins, androllingstockintheMaterialsDiversionFacilityshallbespeciallymarkedtoindicate thattheequipmentbelongstoNapaRecyclingandWasteServices,LLCandisforuse solelyintheCityofNapa.Suchpaintedmarkingsshallbeeasilyvisibleandrecognizable fromadistanceofonehundred(100)feetasdistinguishingContractor’sequipmentfrom thatofallotherAffiliatedEntities,includingbutnotlimitedtoNorthern,NCRWSand600 TowerRoad(dbaValleyRecycling).Aspartofthemarkingsdescribedherein,Contractor shallconsecutivelynumberallthreehundredfifty(350)rolloffboxescommittedby ContractortoCityoperationsaslistedinAttachmentL.Theserolloffboxesshallbe numberedfrom001to350innumberseasilydiscernablefromadistanceofonehundred (100)feet.

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Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

Allvehicles andequipmentownedbyeachofContractor’sAffiliatedEntitiesincludingbut notlimitedtovehiclesandrolloffboxesshallalsobeuniquelypaintedtoidentifythe vehiclesandequipmentasbelongingtoeachoftheaffiliates.Suchpaintedmarkings shallbeeasilydiscernablefromadistanceofonehundred(100)feet.

Contractorshallcompletetheabove-describedpaintingandmarkingbySeptember30, 2010.

3.AccommodationofAffiliateComputer.ContractormayinstallandoperatetheAS 400computerownedbyNorthernandusedtostoreandmanipulatedatafromoperation oftheDRTSintheofficesoftheMaterialsDiversionFacility.Ifitdoesso,Contractorshall beresponsibleforallmaintenance,repair andreplacementofthecomputer,shallcarry insuranceonit,andshallholdtheCityharmlessforanydamagetoordestructionofit.

4.NoStorageofOtherAffiliateProperty.Exceptasprovidedunderthelease betweenCityandNCRWSforstorageofNCRWSequipment(CityAgreementNo.8891), Contractorshallnotinstallorstoreanyotherpersonalproperty,includingbut notlimitedto computers,printers,faxmachine,officeequipmentorany otheritemsthatarenot specificallydedicatedtooperationsfortheCityrequiredbythisContract,withouttheprior writtenconsentoftheCity.IftheCityapprovestheinstallationorstorageofanysuch equipmentat theMaterialsDiversionFacility,Contractoragreestobefullyresponsiblefor maintenance,repairandreplacementofallsuchequipment,tocarryinsuranceonallsuch equipment,andtoholdtheCityharmlessforanydamagetoordestructionofsuch equipment.”
SECTION4.PERSONNEL
Section7.06Personnel,subsectionAGeneralisamendedaddingthefollowingafterthesecond paragraph:
“1.GeneralManagerandController.Contractororiginallycommittedtoprovideeighty-five percent(85%)ofonefulltimeequivalent(FTE)forboththeGeneralManagerandController positions.EffectiveJuly1,2007,Contractorhasreducedthe annualworkhoursofthe GeneralManager,currentlyGregKelley,fromeighty-fivepercent(85%)ofoneFTEto seventy-fivepercent(75%)ofoneFTE.Contractoragreesthe GeneralManagerpositionwill beheldbyGregKelleyunlesstheCityapproves,inwriting,substitutionofanotherGeneral Manager.Contractorfurtheragreesthatthe annualworkhoursprovidedbytheGeneral ManagertotheCityshallnotbereducedbelowseventy-fivepercent(75%)ofoneFTE withoutthewrittenconsentoftheCity.ForpurposesofthisContractone(1)FTEequalstwo thousandeighty (2080)workhoursperyear.

EffectiveJuly1,2007,ContractorhasreducedtheannualworkhoursoftheController, currentlyMikeMurray,fromeighty-fivepercent(85%)ofoneFTEtoseventy-fivepercent (75%)ofoneFTE.ContractoragreestheControllerpositionwillbeheldbyMichaelMurray unlesstheCityapproves,inwriting,substitutionofanotherController.Contractorfurther agreesthat the annualworkhoursprovidedbytheControllertotheCityshallnotbereduced belowseventy-fivepercent(75%)ofoneFTEwithoutthewrittenconsentoftheCity.

InordertoaccommodatetheworkbeingperformedbytheGeneralManagerand the ControllerforAffiliatedEntitiesasdescribedherein,thosetwo(2)managementemployees mayutilizetheirofficespaceattheMaterialsDiversionFacilityforsuchwork.

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Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

2.ReductionInPaymentToContractorForPersonnelReduction.TheOperatingand CapitalCostPaymenttoContractor,asdescribedinSections12.02and12.03ofthe Contract,isreducedeffectiveJuly1,2007toreflectthereductioninworkhoursdescribedin Section7.06A1.Table1ofAttachmentT,asamendedandrestated,reflects therevised Operating andCapitalCostPaymenttoContractor.Therevisedfiguresareexpressedin 2004dollars.”
AttachmentT,“CombinedOperating andCapitalCostforCollectionandMDFOperation,”is amendedbyaddingtwonewsetsoftablesthatareincludedinExhibit2andincorporatedherein bythisreference.ThetwonewsetsoftablesareinadditiontotheexistingAttachmentT,which willremainaspartoftheContract.ThefirstnewsetoftheAttachmentTtablesshows the reductioninpaymenttoContractorforthepersonnelreductiondescribedinthissectionasofJuly 1,2007,“CombinedOperatingandCapitalCostforCollectionandMDFOperationRevisedasof July1,2007”.AlltablesinAttachmentTthat were affectedbythischangehavebeenupdated andareincludedinExhibit2.ThetablesasofJuly1,2007 alsoreflectchangesmadeinthe annualOperatingandCapitalCostpaymenttoContractorasdescribedinSection12.02,upto andincludingthoseforJuly1,2007,aswellasaJuly2006adjustmenttothecostsforproviding Collectionservicesto NVUSDresultingfromtheremovalofservicetoschoolsintheCityof American Canyon andtheadditionofservicetoStonebridgeElementarySchool.Thesecond newsetofAttachmentTtables,“CombinedOperating andCapitalCostforCollectionandMDF Operation RevisedasofJuly1,2010”showstheNRWScostsupdatedasofJuly1,2010.The July1,2010setoftablesincludesannualcostadjustmentsmadetotheContractor’sOperating andCapitalCost paymentpursuanttoSection12.02,changesbasedupontheCostReview conductedin2008pursuanttoSection12.02E,thereductionsforchangesinpersonnel described inthissection, and theadditionof0.25FTEscalehousecoveragebyNRWSinDecember2008.

SECTION5.LIQUIDATEDDAMAGES
Section13.09“LiquidatedDamages”isamendedbyaddingthefollowingcategoryofLiquidated Damagesaftersubsection“A.CollectionReliability”:
“A-I.UseofNRWSPersonnelorEquipmentByAffiliatedEntities
(i)ForeachinstancethatCitydocumentsuseofNRWSpersonnelor equipmentbeingusedbyAffiliatedEntities(viaphotographoron-site observationbyaCityemployeeoragent)$200.00
(ii)ForeachinstancethatCitydocumentsuseofNRWSpersonnelor equipmentbeingusedbyAffiliateEntities(viaphotographoron-site observationbyaCityemployeeoragent)over5suchinstanceswithinasix (6)monthperiod$400.00”
SECTION6.REPORTING
Section 6.15“MarketingofRecoveredMaterialsandCompost,”subsectionC.“Marketing Duties.”isamendedwiththeadditionofthefollowingnewsubsection6:
“6.DepartmentofResourcesRecyclingandRecoveryRegulations.

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Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

ContractorshallcomplywithallregulationsoftheCaliforniaDepartmentofResources RecyclingandRecovery(CalRecyle)and anysuccessoragenciesthatadministertheCalifornia BeverageContainerRecyclingandLitterReductionAct,includingbutnotlimited toregulations concerning(1)trackingoftonnagesandmaterialtypes,(2)calculationandallocationsof tonnagesofeachtypeofmaterialmarketedandreported,(3)preparationofalldocumentation requiredfortransactionsinvolvingmaterialswithCaliforniaRedemptionValue(CRy),and(4)all reportspreparedforandtrackingoffundsreceivedforCRVmaterials,includingbut notlimitedto DR-6andDR-7reports,as setforthinPublicResourcesCodeDivision12.1,Chapter,Section 14500etseq.andallregulationsrelatingthereto.Contractorshallbe solelyresponsibleforall allocationsandcalculationsoftonnagesmarketedandalltonnagesandpoundsreportedunder eachcategoryintheDR-6andDR-7reportstoCalRecycle.”
Section6.16“ContractorReports,”isdeletedinitsentiretyandreplacedwiththefollowing:
“Section6.16.ContractorReports.Onorbeforethetwentieth(20tI)dayofeach month,ContractorshallsubmittoCityareportshowingtheinformationrequiredinAttachmentR undertheheading“MonthlyMDFReports”.Onorbeforethetwentieth(20t)dayofeachmonth Contractorshallalso submittheinformationrequiredinAttachmentDD“MDFMaterialsPaid SalesReport”asitmayrevisedfromtimetotimebyCity.TheinformationinattachmentDDshall bereportedfortheMaterialsSalesMonththatincludesthe21stdayofeachmonth throughthe 20thdayofthepreviousmonth.Forexample, theMaterialsPaidSalesReportsubmittedonMay ofagivenyearwoulddescribeMDFmaterialssalesdepositsforthetimeperiodofMarch 21stthroughApril(previousMaterialsSalesMonth).Theinformationshallbe submittedin electronicsortableformat(e.g.Excelpivottablesorequivalent)compatiblewithCitycomputer hardwareandsoftware.TheinitialreportingformatisshowninAttachmentDD.Thecolumns havebeencolor-codedbythepartiestofacilitatedevelopmentanduseofthenewreporting format.Eachload shallbeidentifiedby,trackedandreportedusingtheMDFweightticketnumber forthatload.

A.InformationtoBeProvided.Theinformationtobeprovidedincludesbutisnot limitedtothefollowingforeachandevery materialssalestransaction:
•MDFticketnumber
•Monthshipped
•Dateshipped
•Nameofscrapbuyer
•NameofCRVbuyerand/orbroker
•Materialtype
•ForelectronicwastelistpoundsofcomputersandpoundsofCRT’splus total ElectronicWastetons
•Containernumber
•Bookingnumber
•Sealnumber
•WeightofloadoutboundatMDFscalehouse(intons)
•Buyerpaidpounds
•Buyer PaidTons
•Totalcheckamountforscrapvalue
•Totalcheck amountforCRVvalue
•AggregatecheckamountforscrapandCRVvaluetogether
•Numberofpoundsintheloadthatcamefromabuybackcenterorrecyclingcenter program(“RCpounds”)
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Attachment AA
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EXHIBIT A

•Numberofpoundsintheloadthatcamefromacurbsiderecyclingprogram(“CS pounds”)
•Numberofpoundsintheloadthatcamefromacollectionprogram(“CPpounds”) •DollarspaidforRC CRV
•DollarspaidforCSCRV
•DollarspaidforCPCRV
•Scrappriceperpound
•Scrappriceperton
•Dollarspaid forRCscrap
•Dollars paid forCSscrap
•Dollarspaid forCPscrap
•RCtotaldollarsperton
•CStotaldollarsperton
•CPtotaldollarsperton
•Totaldollarspertonreceived.

B.RetentionofRecords.Contractorshallretainrecordsforallmaterialssales transactionsforaperiodofthree(3)yearsafterthedateofreceiptorissuance.Suchrecords shallincludebutnotbelimitedtopurchaseorders,bookings,copiesofchecksreceivedin paymentformaterials,receipts,invoicesandotherdocumentationshowingthe payments,costs anddeductionschargedbybrokers, endmarketsandprocessorsforfreight,shrinkage, packaging,contamination,demurrage,storageandallotherchargesandcostsaffectingthefinal revenuereceivedforthematerials,and anyotherdocumentsrelatedtothesaleofmaterial(s) andpaymentformaterials,asspecifiedbyCity.Recordsofallocationofmaterialsand calculationsusedbyContractortodeterminethequantitiesofeachtypeofmateriallistedonthe AttachmentRandAttachmentDDreportsasmarketedfromtheMDFshallalsobemaintainedby Contractor.Contractormay,atitsoption,maintaintheserecordsincomputerform,on microfiche,orinanyothermanner,providedthattherecordscanbepreservedandretrievedfor inspectionandverificationinatimelymanner.

C.RequestsForAdditionalInformation.Citymayrequestadditionalinformation regardinganyAttachmentRreportandanyAttachmentDDreport.Suchrequestshallbein writingandshalldescribetheinformationrequestedwithreasonablespecificity.Contractorshall furnishtherequestedinformationtoCitywithinthirty(30)daysfromthedateoftherequest.

D.UseofInformation.Citymayuserecordsprovidedpursuanttothissectionfor anypurposeincluding,but notlimitedtoreviewbyCityemployees,auditors,contractorsorother agents,andreviewbyCaiRecycle,itssuccessororotheragencies.Suchrecordsanddocuments maynotbeconsideredproprietarybyContractor.

NewAttachmentDDisattachedheretoandincorporatedhereinasExhibit5.

SECTION7.DIVERSIONINCENTIVEANDDIVERSIONDEBIT/CITYREVENUERECEIVED

FROMSALE OFELECTRONICWASTEBYNORTHERN
Section12.04DiversionIncentivePaymentorDebitoftheContractandAttachmentsV-I (CalculationofDiversionIncentive)andV-2(CalculationofDiversionDebit)aredeleted.This provisionisretroactivetotheEffectiveDateoftheContract.

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Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

Section12.06ShareofRevenuesfromSaleofRecyclableMaterialsandComrostisamendedby addingthefollowingat theendofthesection:
“RevenuesreceivedbytheCityfromNorthern’sdirectsalesofElectronicWasteandCovered ElectronicWastefromtheDRTSpursuanttoSection3DoftheagreementbetweentheCityand NortherninAttachmentAA,shallnotbesharedwithContractor.

Thepartiesacknowledgeandagreethatforoperationalreasons,andbecauseNorthernisan AffiliatedEntitytoContractor,revenuesfromNorthern’sdirectsaleofElectronicWasteand CoveredElectronicWastefromtheDRTSwereinadvertentlycommingledwithrevenuesfrom Contractor’ssaleofElectronicWasteandCoveredElectronicWastefromtheMDFanddeposited intotheCity’srevenueaccountduringtheperiodApril21,2008throughFebruary28,2010.City paidContractorthirtypercent(30%)ofthisrevenue pursuanttothisSection12.06.Theparties agreethatforthisperiodonly(April21,2008throughFebruary28,2010)Northernwillreceive sixty-ninepercent(69%)oftherevenuefromsaleofitsElectronicWasteandCoveredElectronic Waste,theCitywillreceive onepercent(1%)ofthe revenueandContractorwillretainthethirty percent(30%)oftherevenuealreadyreceivedfromCity.AsofMarch1,2010Northernhas,and willcontinueto sellitsElectronicWasteandCoveredElectronicWastedirectlyfromtheDRTS andhasandwillcontinuetoreceivepaymentforsaidmaterialdirectlyfromtheendmarketor processor.RevenuefromthesesaleswillbesharedwithCitypursuanttoSection3Dofthe agreementbetweentheCityandNortherninAttachmentAA.

SECTION8.DEFINITIONS
AttachmentA“Definitions”isamendedbyaddingthefollowingnewdefinitions:
““Pre-Processed,Baler-ReadyRecyclableMaterials”meansfiber,plastics,aluminum andotherRecyclableMaterialssegregatedbytypeandsortedtoremovecontaminantsso thattheyare“baler-ready”anddonotrequireanyadditionalsorting. “Pre-Processed,Market-ReadyRecyclableMaterials”meansglass,CoveredElectronic Waste,ElectronicWasteandother materials thatarepre-sorted,readytogodirectlyto market,anddonotrequirebaling.InthecaseofCoveredElectronicWasteand ElectronicWaste,thematerialistobealreadysortedintothosetwocategories,stacked onpallets,wrappedandreadyforshipmenttomarkets.
“DRTSPre-SortedMixedRecyclableMaterials”meansamixoftwoormoreRecyclable MaterialsfromtheDRTSdeliveredbyNorthern,collected,stored,deliveredorpre-sorted suchthatdifferentmaterialtypesaremixedtogetherandarenotcompletelysourceor typeseparated.Suchmaterialsmustbefurthersortedandprocessedbefore theyare readytogotomarket.DRTSPre-SortedMixedRecyclableMaterialsdoesnotinclude SingleStreamRecyclableMaterials(asdefinedintheagreementbetween theCityand NortherninAttachmentAA),regardlessoftheirresiduecontent. “DRTSNewMaterials”meansmaterialsnotincludedinthedefinitionsofPre-Processed, Baler-ReadyRecyclableMaterials,Pre-Processed,Market-ReadyRecyclableMaterials, orDRTSPre-SortedMixedRecyclableMaterials,thataredeliveredtotheDRTSandthat requirebalingandmarketing.PursuanttotheCity’sagreementwithContractor’saffiliate, Northern,AttachmentAA,,theCityhastherightoffirstrefusaltobale andmarketsuch materials.ThefollowingmaterialsareexcludedfromDRTSNewMaterials:loose, unbaledscrapmetal,wood,drywall,sheetrock,concreteandasphaltthatarealready Page11
Attachment AA
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EXHIBIT A

beingsortedandmarketeddirectlybyNorthernfromtheConstructionandDemolition sortinglineattheDRTSasofJanuary1,2008.
“MaterialsSalesMonth”meanstheperiodbeginningonthe21stdayofeachmonthand endingonthe2Odayofthefollowingmonth.TheMaterialsSalesMonthcorrespondsto thereportingperiodsrequiredfortheCity’sagreementwithNortherninAttachmentAA.

ThemonthlyreportssubmittedbyContractorintheformatincludedinAttachmentDD shallreportmaterialssalesdataforeachMaterialsSalesMonth. “QuarterlyAverageMaterialsRevenueReceived”meanstheaverageoftherevenue receivedforaspecificmaterialmarketedfromtheMaterialsDiversionFacilityforeachof thethreemonthsoftheprecedingquarterasdefinedherein.(TheQuarterlyAverage MaterialsRevenueReceivedreflectsonehundredpercent(100%)oftherevenue receivedforthematerial,priortotheseventypercent/thirtypercent(70%/30%)revenue splitbetweenCityandContractor.)ForpurposesofcalculatingtheQuarterlyAverage MaterialsRevenueReceived,thefollowingquarterswillbeused: theQuarterlyAverage MaterialsRevenueReceivedpricestobeappliedfortheperiodOctober1through December31willbebasedupontherevenuereceivedbytheCityforeachmaterialtype duringtheperiodMay21throughAugust20.TheQuarterlyAverageMaterialsRevenue Received pricestobeappliedfortheperiodJanuary1throughMarch31willbebased upontherevenuereceivedbytheCityforeachmaterial typeduringtheperiodAugust21 throughNovember20.The QuarterlyAverageMaterialsRevenueReceivedpricestobe appliedfortheperiodApril1throughJune30willbebasedupontherevenuereceivedby theCityforeachmaterialtypeduringtheperiodNovember21throughFebruary20.The QuarterlyAverageMaterialsRevenueReceived pricestobeappliedfortheperiodJuly1 throughSeptember30willbebasedupontherevenuereceivedbytheCityforeach materialtypeduringtheperiodFebruary21throughMay20.TheCitywillcalculatethe QuarterlyAverageMaterialsRevenueReceivedforeachquarterbytakingtherevenue receivedeach quarterdividedbythenumberoftonsofthatmaterialsoldinthequarter.A samplecalculationofthe“QuarterlyAverageMaterialsRevenueReceived”appearsin AttachmentFouroftheagreementbetweentheCityandNorthern,attachedheretoas AttachmentAA.”
“BuyerPaidTons”meansthepricethatapurchaserpaidforaspecifiednumberoftons inagivenmaterials shipmentorloadthatismarketedbyContractorfromtheMDF.Buyer PaidTonsmaydifferfromtheactualnumberoftonsintheoutboundweightofthe materialstakenattheMDFscalesduetomoisture,contamination,packagingweight,or otherdifferenceintheweightoftheloadwhenitisweighedatthebuyer’sscales.

Thedefinitionof“PCScalesSystem”inAttachmentAisdeletedandisreplacedinitsentirety withthefollowing:
“SoftPakScale System:“SoftPakScaleSystem”meansthesoftwaresystemsupplied bySoftPakandinstalledat theMaterialsDiversionFacilityscalehouseforthepurposeof recording,managingandreportingofweightsofinboundand outboundloads.” Thedefinitionof“RecoveredMaterials”inAttachmentAisdeletedandreplacedinitsentiretywith thefollowing:
“RecoveredMaterials:“RecoveredMaterials”meansthosematerialsthatare processed at theMaterials DiversionFacilityanddivertedfromdisposalbyrecyclingorcomposting, Page12
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EXHIBIT A

includingmaterials receivedfromentitieswhichcontractwiththeCityforuseofthe MaterialsDiversionFacility.”
Allreferencestothe“CaliforniaIntegratedWasteManagementBoard”andtothe“California DepartmentofConservation”areherebychangedtothe“CaliforniaDepartmentofResources Recyclingand Recovery(“CalRecycle”)andanysuccessoragencies”.

SECTION9.MATERIALS DIVERSIONFACILITYOPERATINGDAYSANDHOURS,

MATERIALSMARKETINGANDCHARACTERIZATIONOFDRTSMIXEDMATERIALS AttachmentF“ScopeofWorkforOperationsatNapaMaterialDiversionFacility”,Section

2.61isdeletedandreplacedinitsentiretywiththefollowing:
“Thehoursforreceiptofloadsfromthegeneralpublicshallbedailyfrom8:00AMto4:00 PM.”
AttachmentF,Section2.62isdeletedandreplacedinitsentirelywiththefollowing:
“TheMaterialsDiversionFacilitywillbeopeneverydayoftheyear,exceptforthe followingfour holidays:NewYearsDay,EasterSunday,ThanksgivingDayandChristmas Day.OnthefollowingholidayswhentheMaterialsDiversionFacilityisopen,thepublic operatinghoursshallbe8:00AMto3:00PM:MartinLutherKing,Jr.Day,Presidents’ Day,MemorialDay,IndependenceDay,LaborDay,and thedayfollowingThanksgiving Day.OnChristmasEve,thepublicoperatinghoursshallbe8:00AMto12:00PM (noon).”
AttachmentF,Section6.2.1“MarketingMDFCapacity”isamendedbyaddingthefollowingprior tothefirstsentence:
“Contractorshallusereasonablebusinesseffortsandactingoodfaithtomarket the processingcapacityoftheMaterialsDiversionFacilitytootherentities,agenciesand organizations,including,butnotlimitedto,publicagencies,privatebusinesses,including recyclersandotherhaulers, andallotherpotentialcustomers.” AttachmentF,Section 6.8.2isamendedbyaddingthefollowingsentenceat theend:
“AtthediscretionoftheCity,thesamplingand analysisrequiredbythisSection6.8may beusedtocharacterizeDRTSPre-SortedMixedRecyclableMaterialsdeliveredtothe MaterialsDiversionFacility,uptofour(4)timesperyear.Intheeventthatanemergency situationrequiresNortherntodeliverDRTSPre-SortedMixedRecyclableMaterialsin excessoffour(4)timesinonecalendaryear,Contractorshall provideacharacterization ofsuchmaterialsatnoadditionalcosttotheCity
SECTION10.NEWANDREVISED ATTACHMENTS
ThefollowingAttachmentsareattachedheretoandincorporatedinthisSecondAmendmentas Exhibits1though6,respectively.

Exhibit1.AttachmentAA,“AgreementBetweentheCityofNapaandNorthernRecycling OperationsandWasteServices,LLCdated7/6(2010.

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EXHIBIT A

Exhibit2.AttachmentT,“CombinedOperating andCapitalCostforCollectionandMDF Operation,”isaugmentedbyaddingthefollowingtwosetsoftables:“CombinedOperating andCapitalCostforCollectionandMDFOperationRevisedasofJuly1,2007”and “CombinedOperatingandCapitalCostforCollectionandMDFOperationRevisedasof July1,2010”.ThesetwoadditionalsetsoftablesdocumentthechangesinAttachmentT duetochangesmadeinthisSecondAmendmentandduetoadditionalchangesmadeby thepartiessincetheEffectiveDateoftheContract.

Exhibit3.AttachmentBB,“MapofFiveMileRadiusFromEntranceToMaterials DiversionFacility.”
Exhibit 4.AttachmentCC,“ListofBalersProvidedbyContractorPursuanttoSection

6.03.02.”
Exhibit5.AttachmentDD“MDFMaterialsPaidSalesReport”
Exhibit6.AttachmentEE“NapaMDFOperatingRegulations”
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INWITNESSWHEREOF,thepartieshereto havecausedthisAgreementtobeexecutedtheday andyearfirstabovewritten.

CITYOFNAPA:NAPARECYCLING&WASTESERVICES,LLC*:
-_&j_;—r
GregKelley,ManagingMember
(Signature)
(Typenameandtitle)
(Signature)
(Typenameandtitle)
Address:
*Corporationpartnership,limited
liabilitycorporation,sole
proprietorship,etc.

Unlesscorporateresolutiondelegates
anindividual tosigncontracts,an
agreementwithacorporationshallbe
signedbythePresidentorVice
PresidentandtheSecretaryor
Treasurerofthecorporation.A
generalpartnershallsignonbehalfof
ageneralpartnership.Themanaging
member,ifauthorized,maysignon
behalfofalimitedliabilitycorporation.

NorthernRecyclingOperationsandWasteServices,LLCherebyacknowledgesandagreestoall thetermsofthisSecondAmendmentwhichaffectit,includingbutnotlimitedtoSections1through Section4.

NORTHERN RECYCLINGOPERATIONSANDWASTESERVICES,LLC
By:
________________________________
Dated:

JauesR.LaRochelle,PublicWorksDirector
DorothyRoadman,CityClerk
(Typenameandtitle)By:

COUNTERSIGNED:
(Signature)
MichaelW.Barrett,CityAttorney
(Typenameandtitle)
BudgetCode:_________
Greg41iey,MafgingMember
Page15
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EXHIBITI

ATTACHMENTAA

AGREEMENTBETWEENTHECITYOFNAPAANDNORTHERNRECYCLINGOPERATION

ANDWASTESERVICES

AGREEMENT
ThisAgreementisenteredintoasofthe6thdayofJuly,2010,byand betweenthe CITYOFNAPA,achartercityandmunicipalcorporation(hereinafterreferredtoasthe“City”) andNORTHERNRECYCLINGOPERATIONSANDWASTESERVICES,LLC,aCalifornia limitedliabilitycompany(hereinafterreferredtoas“Northern”).

RECITALS

1.InJanuary2004theCitypurchasedtheNapaMaterialsDiversionFacility(“Napa MDF”)locatedat820LevitinWay,NapaCountyinorder(a)to controlthecapitalfacilities necessarytocollectandprocessresidentialandcommercialRecyclableMaterialsand YardwastegeneratedinNapa,(b)tocontrolthecostsforcollectingandprocessingthese materialsinthefuture,and(c)tobeabletoofferapublicly-ownedfacilitytootherjurisdictions forprocessingtheirRecyclableMaterials.

2.During2004theCityconductedacompetitiveRequestforProposalsprocessfor operationoftheNapaMDFandcollectionofRecyclableMaterialsandmunicipalsolidwastein theCity.TheCityawardedatenyearcontracttoNapaRecyclingandWasteServices,LLC (“NRWS”)inDecember2004.NRWStookoveroperationoftheCity’scollectionsystemand theNapaMDFonOctober1,2005.

3.AsrequiredbyitscontractwiththeCity,NRWSinstallednewRecyclable MaterialssortingequipmentintheNapaMDFin2005. Thenewequipmentincludeda conveyor beltsystem,sortingplatform,newspapersortingscreens,adebrisrollscreen,overhead magnet,airconveyingsystem,storagebinsandanewbaler.

4.InMay2005theCityexecutedaMemorandumofUnderstanding(“MOU”)with theCountyofNapatoprocessRecyclableMaterialsandYardwastecollectedinCounty unincorporatedareasbyNapaCountyRecyclingandWasteServices,LLC(“NCRWS”)fora periodoften(10)years.NCRWSisanaffiliatetoNRWSandsharescommonownership, managementandcontrol.

5.TheNapaMDFreceivesandprocessesRecyclableMaterials,Yardwaste,and othermaterialsfromthepublicandmaterialscollectedinotherjurisdictionsthataredeliveredby thejurisdictions’designatedwasteandrecyclinghaulers.

6.Theresidueleftoverafterthe processingofmaterialsattheNapaMDF,thatcan neitherberecyclednorcomposted,isdeliveredtotheDevlinRoadTransferStation(“DRTS”), locatedadjacenttotheNapaMDFat889DevlinRoad.TheDRTSisownedbytheNapa VallejoWasteManagementAuthority(“Authority”),ajointpowersagencywhosemembers includetheCity,theCountyofNapaandthecitiesofVallejoandAmericanCanyon. 1 Attachment AA
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EXHIBIT A

7.PursuanttotheAuthority formationagreementandsubsequentamendments,the CitycommittedtodeliverMunicipal SolidWastecollectedinNapa andresiduefromtheNapa MDFtotheDRTSfordisposal.Theformationagreementalsostates:“TheAuthorityshallnot provideanyrecyclingservicesthatduplicateorcompetewithrecyclingservicesprovidedbyany Member(atthetimetheAuthoritydeterminestoprovideneworexpandedrecyclingservices) withouttheconsentoftheMember.”

8.Inlate2006theAuthorityissuedaRequestforProposalsforoperationofthe DRTS whichincludedarequirementthat theoperatordivertfor recyclingaminimumoftwelve percent(12%)oftheincomingMunicipalSolidWaste.TheAuthority’scontractwiththeformer operator(Allied)endedJune30,2007.ThreeproposalswerereceivedandinApril2007the Authorityawardedafifteen(15)yearcontracttoNorthernRecyclingOperations andWaste Services,LLC(“Northern”).Northernisanaffiliate toNRWSandNCRWSandsharescommon ownership,managementandcontrolwitheach.

9.TheNorthernproposaltotheAuthoritystatedNorthernwouldrecycletwenty-five percent(25%)oftheincomingmaterialattheDRTS,anddiversionwouldincreaseto35%.

Northern’sproposalstatedthatmanytypesofRecyclableMaterialsrecoveredattheDRTS wouldbeprocessedat the NapaMDF.

10.AftersubmittaloftheproposaltotheAuthority,Northernrequestedpricingfrom theCityforprocessingRecyclableMaterialsfromtheDRTSat theNapaMDF.Inadditiontothe pricingissue,theNorthernproposalalso created severalsignificantchangestoconditionsthat werenotcontemplatedinthetermsofthecontractbetweentheCityandNRWS.There wasnot sufficienttimeforthepartiestocompletenegotiationsontheseissuespriortotheAuthority’s awardoftheDRTSoperations contracttoNorthern.

11.TheCityandNorthernagreedtoaninterimarrangementfortheperiodJuly1 throughDecember31,2007whereinNorthernwoulddelivermaterialsforprocessingat the NapaMDFviaNCRWSatthepricessetforthintheMay2005MOUbetweentheCityofNapa andNapaCounty.Inaddition,thepartiesoutlinedconceptstoaddressotherchanged conditionscreatedbytheNorthernproposal.TheCity,NorthernandNRWSmemorialized their intentiontoaddressconcernsraisedbyNorthern’sproposalinaApril9,2007JointSummary Report,signedbythepartiesandpresentedtotheNapaCityCouncilatitsregularmeetingon April17,2007.TheCityCouncildirectedstafftocomplete thenegotiationsandreturnwitha finalagreementbetweentheCityandNorthernandaSecondAmendmenttothecontract between theCityandNRWS.

12.OnMarch19,2010theAuthorityapprovedanamendedandrestatedagreement withNorthernthat reduced therequireddiversionlevelfromtwentyfivepercent(25%)to fourteenpercent(14%)oftheinboundtonnageattheDRTS.Theamendmentmadeother changestotheAuthority’sagreementwithNorthern.

13.ThisAgreementistheresultofnegotiationsbetween theCityandNorthern.The SecondAmendmenttotheCity-NRWScontractistheresultofnegotiationsbetweentheCity andNRWS.ThetwodocumentsareintendedtocoordinatetheactivitiesoftheCity,NRWS andNorthernintheregionaluseoftheNapaMDFand theDRTSsothat thefacilitiesdo not competeanddonotduplicateinfrastructure.NeithertheCitynorNorthernwillemployany artifice,businessstructureorotherstratagemtocircumventorunderminethespiritandpurpose ofthisAgreementorthespiritandpurposeoftheCity-NRWS2004contract. 2 Attachment AA
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EXHIBIT A

14.ItistheintentionofthepartiesthatthisAgreementprovidethetermsandpricing forprocessingofmaterialsnormallyreceivedattheDRTS.ThisAgreementisnotintendedto applytomaterialsthatwouldnotnormallybedeliveredtoorreceivedatatransferstationorata transferstationwithabuybackfacility.

NOW,THEREFORE,inconsiderationofthemutualpromisescontainedinthis Agreement,andforothergoodandvaluable consideration,thepartiesagreeasfollows:

SECTION1.MATERIALS TOBEDELIVEREDANDPROCESSED
A.MaterialsToBeDelivered.

Northernmustdeliverallofthefollowinglistedmaterialsthathavebeenreceivedandprocessed attheDRTS(includingmaterialsreceivedatthedropoffandreusecenterandatthebuyback center)totheNapaMDFforbaling(whereapplicable)andmarketing.Northernfurtheragrees thatitwillnotutilizeanyotherprocessingormarketingfacility,recyclingcenterorbrokerforthe finalbalingand/ormarketingofthebelow-listedmaterials.Northernmakesnoguaranteeasto thenumberoftonsofeachmaterialitwilldelivertotheNapaMDF.

ThematerialstobedeliveredbyNorthernincludeallofthefollowing:
1)Pre-Processed.Baler-ReadyRecyclableMaterials:
a.Cardboard(maybelooseorinsmallbalesreadyforre-balingintoexportbales) b.Newspaper
c.MixedPaper
d.WaxedCardboard
e.#1PETPlasticBottles(includingCRVRC,CRVCPandCRVCS)
f.ColoredHDPEPlasticBottles(includingCRVRC,CRVCPandCRVCS) g.NaturalHDPEPlasticBottles(includingCRVRC,CRVCPandCRVCS) h.AluminumCans(includingCRVRC,CRVCPandCRVCS)
i.Mixed#1-7Rigid/Non-CRyPlastics(includingRCandC&D)
j.ClearFilmPlastic
k.ColoredFilmPlastic
I.PETFilmPlastic
m.#3PVC(includingCRVRC, CRVCPandCRVCS)
n.#4LDPE(LowDensityPolyethylene(includingCRVRC,CRVCPandCRVCS) o.#5PP(Polypropylene(includingCRVRC,CRVCPandCRVCS)
p.#6PS(Polystyrene)(includingCRVRC,CRVCPandCRVCS)
q.#7Other(includespouchesandunspecifiedresins)(includingCRVRC,CRVCP andCRVCS)
r.BimetalCans(includingCRVRC,CRVCPandCRVCS)
2)Pre-Processed,Market-ReadyRecyclableMaterials:
a.MixedGlassContainers(includingCRVRC,CRVCPandCRVCS)
b.Clear-OnlyGlassContainers(includingCRVRC,CRVCPandCRVCS) c.Colored-OnlyGlassContainers(includingCRVRC,CRVCPandCRVCS) d.ElectronicWaste(BothCoveredElectronicWasteandElectronicWaste) 3 Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

e.PETFilmPlastic(DeliveredinrollsinGaylordboxesreadyforshipmentto market)
f.CarpetUnderpadding(Madeofpolyurethaneorothermaterials) g.#12Cardboard
h.SourceSeparatedMaterialAlreadyBaledForMarket(includingcardboard, waxedcardboard,shrink wrapandothermaterialsinbales)
3)AMixorCombinationofAnyTwoorMoreoftheAbove-ListedMaterials IfNorthernisunabletosortanyoftheabove-listedmaterialsreceivedat theDRTS,such thatamixorcombinationofanytwoormoreoftheabove-listedmaterialsremains, NorthernshalldeliverallsuchDRTSPre-SortedMixedRecyclableMaterialstotheNapa MDFforprocessing,andforbaling(ifapplicable).

The partiesintendandagreethatSingleStreamRecyclableMaterialswillnotbe deliveredtotheDRTSandwillnotbeeligibleforprocessingat theNapaMDFunderthe pricingandtermsofthisAgreement.Thepartiesagreetoworkcollaborativelywitheach otherandwiththeCity’sMDFoperator(currentlyNRWS)tosecuretheflowofSingle StreamRecyclableMaterialsforprocessingatthe NapaMDFpursuanttothe termsof the2004contractbetweentheCityandNRWS.Thisincludes,butisnotlimitedto, (1) theSingleStreamRecyclableMaterialscurrentlyprocessedat theNapaMDFfrom SonomaGarbage,BerryessaGarbageandfromtheCityofParadise,and(2)theSingle StreamRecyclableMaterialsfromtheCitiesofVallejoandAmericanCanyonthathave beendeliveredto,andprocessedat,theNapaMDFinthepast.BecauseSingleStream RecyclableMaterialswillnotbedeliveredtotheNapaMDFbyNorthern,thepricespaid toNorthernshallnotincludeanyoftherevenuereceivedbyNRWSand theCityforthe AnnualCurbsidePaymentfromCalRecycle(oranysuccessoragencies)pursuantto PublicResourcesCodeSection14549.6(a).

TheCityshallacceptalloftheabovelistedmaterialsfromNorthernandwilldirecttheoperator oftheNapaMDF,currentlyNRWS,toprocessandmarketthem.

B.Yardwaste.

NorthernisnotrequiredtodeliverYardwastefromtheDRTSforcompostingat theNapaMDF.

However,theCitywillacceptYardwastefromNorthern provided(1)thereissufficientcapacity attheNapaMDFand(2)suchdeliverywillnotinterferewithCityandtheNapaMDFoperator’s compliancewithallapplicablepermitsandstateandlocalregulations.

C.AdditionofDRTSNewMaterialsasMarketConditionsChange.

Changesinsecondarymaterialsmarketsarelikelytocreateconditionswhereadditional materialscanbeeconomicallyrecoveredand marketed.Forexample,itrecentlybecame possibletoacceptusedcarpetunderpaddingattheNapaMDFandtomarketthematerialsina mannerand atavaluethatisbeneficialtothe parties.TheCityshallhavetherightoffirst refusaltoacceptandprocessanyDRTSNewMaterialsthatareacceptedattheDRTSand requirebalingandmarketingaftertheEffectiveDateofthisAgreement.

NorthernwillnotifytheCitythatitrequiresbalingandmarketingofaDRTSNewMaterialin writingatleastthirty(30)daysprior tothedateNorthernwouldliketobegin deliveringtheDRTS 4 Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

NewMaterialtotheNapaMDFforbalingandmarketing.Initssolediscretion,theCitymay acceptorrejectNorthern’srequesttobaleandmarkettheDRTSNewMaterial.IftheCity decidestoaccepttheDRTSNewMaterial,theCitywillnotifyNortherninwritingofthis determinationandwilldocumentthecategorytheDRTSNewMaterialfallsintoforpurposesof paymenttoNorthern.ThecategoriesarethoselistedinSection3,subpartsAthroughE.

IntheeventthattheCityhasnomarketingexperienceormarketdataforaDRTSNewMaterial thatcanbeusedtocalculate thepertonQuarterlyAverageMaterialsRevenueReceivedforthe New Material,theCitywillrequestthattheoperatoroftheNapaMDFobtainthebestpossible estimateofthe pertonrevenueforwhichtheDRTSNewMaterialmaybemarketed.TheCity willusetheMDFoperator’sestimateasthebasisforpaymenttoNorthernuntiltheCityhas sufficientdatatocalculate thepertonQuarterlyAverageMaterialsRevenueReceivedforthe DRTSNewMaterial.Atthattime,theCitywillbegintocalculatepaymentstoNorthernbased uponthepertonQuarterlyAverageMaterialsRevenueReceived.Atthe endofthecalendar yearinwhichaDRTSNewMaterialhasbeenacceptedforprocessingbytheCity,theCitywill reconcilethe paymentsmadetoNorthernfortheDRTSNewMaterialthat werebasedupon estimatedmarketvalues(ifany)totheactualrevenuereceivedfortheDRTSNewMaterialand willeitherpayNorthernthedifference,ifany fundsareowedtoNorthern, orinvoiceNorthernfor thedifferenceifNorthernowesfundstotheCity.TheCitywillsubmitthereconciliationto NorthernonorbeforeMarch31ofeachyear.IfadditionalpaymentisowedtoNorthern, NorthernwillsubmitaninvoicetotheCityfortheamountdueandtheCitywillpayapproved invoiceswithpaymentofNorthern’snextmonthlyinvoice.IfpaymentisowedfromNorthernto theCity,theamountwillbeincludedinthenextmonthlyinvoice toNorthern.

Ifmarketconditionschange,theCityreservestheright toceasetoacceptaDRTSNewMaterial ithadpreviouslyapproved.IftheCitydecidestoceasetoacceptanyDRTSNewMaterial,it willnotifyNortherninwritingthirty(30)daysbeforediscontinuingacceptanceofanypreviously approvedDRTSNewMaterialattheNapaMDF.

IntheeventtheCitydecideseithernottoacceptaDRTSNew Material,orceasestoaccepta DRTSNewMaterialasdescribedinthisSection1C,Northernshallhavetherighttoutilize anotherfacilityforthebalingandmarketingofsuchmaterial,provided Northern,asanAffiliated EntitytoNRWS,followstheprovisionsregardingnoduplicationofbalersasdescribedinthe 2004contractbetweentheCityandNRWS,asamended.

D.AdditionofOtherMaterials
IntheeventNorthernidentifiesothermaterial(s)thatfalloutsidethedefinitionofDRTSNew MaterialsbutwhichNorthernwouldliketodelivertothe NapaMDFforbalingandmarketing, theCityshallconsideracceptingsuchmaterialsandshallrespondtoanysuchrequestwithin thirty(30)businessdaysofawrittenrequestbyNorthern.

SECTION2.METHODOFDELIVERYOFMATERIALS
A.VehiclesandPersonnel.

NorthernshallnotuseNRWSvehicles,equipmentorpersonneltodelivermaterialfromthe DRTStotheNapaMDF.

B.InformationtobeProvidedByNorthernatNapaMDFScaleHouse. 5 Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

NorthernwillclearlyidentifyeachloadofmaterialstoNapaMDFscalehousepersonnelfor propercodingandtrackingpurposes.Specifically,Northernshallensurethatthedriverofeach loadprovidesthefollowinginformationinwriting,intheformatshowninAttachmentEight(asit may bemodifiedbytheCity),attheMDFscalehousewheneachloadisdelivered:
(1)thespecificmaterial type(e.g.“cardboard”,“clearglasscontainersCRVRC’,“#1-7 non-CRVplastics”, “CoveredElectronicWaste”,“ElectronicWaste”,“baledcardboard” etc.)intheload;
(2)that thematerialiscomingfromNorthernattheDRTS;andthespecificDRTS processingarea(e.g.sortingarea,Re-UseArea,BuyBackArea, etc.); (3)thecompanyandvehiclenumberdeliveringtheload(e.g.Northern truck#308); (4)withregardtobalesofcardboard,plasticorothermaterialsdeliveredbyanAffiliated Entity(suchasNCRWS,600TowerRoad(dbaValleyRecycling)orothers),thewritten informationshallclearlyindicatewhichcompanyandvehiclenumberisdeliveringthe loadandthecustomeronwhosebehalftheloadisbeingdelivered(e.g.NCRWS, Northernorother).

IfNorthernfailstoprovideanyofthe above-listedinformationtoNapaMDFscalehouse personnelinthespecifiedformatat thetimeofdeliveringaload,theCitywillnotallowthe vehicletounloaduntiltheabove-describedinformationisprovided.Iftheinformationhasnot beenprovidedbythenormalclosingtimeforthe NapaMDFthevehicleshallleave theMDF premiseswithoutunloading.

C.NapaMDFOperatingRegulations.

NorthernshallcomplywiththeOperatingRegulationsfortheNapaMDFassetforthin AttachmentFiveandastheymaybeupdatedfromtimetotimebytheCity.TheCitywill provideNorthernwithupdatedversionsofthe Operating Regulationsfive(5)workingdaysprior toimplementationofanyneworrevised regulations.

SECTION3.PRICESANDCHARGES
ThefollowingarethepricesandchargesforeachmaterialreceivedbytheCityfromNorthern.

A.Yardwaste.

Northernagreestopay theCitytwenty-sevendollars($27.00)pertonforYardwastedelivered tothe NapaMDFduringcalendaryear2009.Thisisbaseduponthecurrentpricepaidbythe CountyofNapapursuanttotheMOUbetweentheCityand theCountyofNapadatedMay3, 2005(attachedheretoasAttachmentTwo;seeSectionIIPart8)plusonedollar($1.00)per ton.ThepricechargedtoNorthernforYardwastedeliveredtothe NapaMDFwillincrease annuallybeginningJanuary1,2010bytheProducerPriceIndex (PPI)formulashownin AttachmentThree.

B.Pre-Processed,Baler-ReadyRecyclableMaterials.
1)Fiber.CityagreestopayNorthernsixty-onepercent(61%)ofthe pertonQuarterly 6 Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

AverageMaterialsRevenueReceivedforthefollowingmaterialsdeliveredbyNorthern:
a.Cardboard
b.MixedPaper
c.Newspaper
d.WaxedCardboard
2)Non-CRVMaterials.CityagreestopayNorthernsixty-onepercent(61%)oftheperton QuarterlyAverageMaterialsRevenueReceivedforthefollowingmaterialsdeliveredby Northern:
a.Mixed#1-7Rigid/Non-CRyPlasticC&DSort
b.Mixed#1-7Rigid/Non-CRyPlasticRe-Use/BuyBack
c.ClearFilmPlastic
d.ColoredFilmPlastic
e.PETFilmPlastic
3)CRVMaterials.CityagreestopayNorthernsixty-ninepercent(69%)oftheperton QuarterlyAverageMaterialsRevenueReceivedforthefollowingmaterialsdeliveredby Northern:
a.#1PETPlasticBottles(includingCRVRC,CRVCPandCRVCS)
b.AluminumCans(includingCRVRC,CRVCPandCRVCS)
c.#2ColoredHDPEPlasticBottles(includingCRV RC,CRVCP,andCRVCS) d.#2NaturalHDPEPlasticBottles(includingCRVRC,CRVCP,andCRVCS) e.#3PVC(includingCRVRC,CRVCPandCRVCS)
f.#4LDPE(LowDensityPolyethylene)(includingCRVRC,CRVCPandCRVCS) g.#5PP(Polypropylene)(includingCRV RC,CRVCPandCRVCS)
h.#6PS(Polystyrene)(includingCRVRC,CRVCPandCRVCS)
i.#7Other(includespouchesandunspecifiedresins)(includingCRVRC,CRVCP andCRVCS)
j.BimetalCans(includingCRVRC,CRVCPandCRVCS)
Asanexample,iftheQuarterlyAverageMaterialsRevenueReceivedforcardboardwasone hundreddollarsperton($100.00),Northernwouldbepaidsixty-onepercent(61%)orsixty-one dollars ($61.00)pertonforcardboarddeliveredbyNortherntothe NapaMDF.

FormaterialsthatareeligiblefortheCalRecycleQualityIncentivePayment(“QIP”),(currently color-sortedglass,PETandHDPE)thepartiesacknowledgeandagreethat theDR-6andDR-7 reportssubmittedbyNRWStoCalRecyclewillnotethe quantitiesofsuchmaterialsthatwere deliveredtothe NapaMDFfromNorthernandfromothercompaniesandjurisdictionsdelivering suchmaterialstotheNapaMDF.BasedupontheinformationintheDR-6andDR-7reports, CalRecyclewillpayNorthernandothercompaniesandjurisdictionsdirectlyforanyapplicable QIPthatisdue.Northernshallnotbeentitledtoreceiveanyportion ofanyQIPpayments receivedbyNRWSortheCityfromCalRecycleoranysuccessoragencies.TheQuarterly AverageMaterialsRevenueReceivedshallexcludeQIPpaymentsreceivedbytheCityandQIP paymentsreceivedbyNRWS.

C.Pre-Processed,Market-ReadyRecyclableMaterials.
7 Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

1)Glass.CityagreestopayNorthernsixty-ninepercent(69%)oftheperton QuarterlyAverageMaterialsRevenueReceivedforthefollowingmaterialsdeliveredby Northern:
a.MixedGlassContainers(includingCRVRC, CRVCPandCRVCS)
b.Clear-OnlyGlass(includingCRVRC,CRVCPandCRVCS)
c.Colored-OnlyGlass(includingCRVRC, CRVCPandCRVCS)
TheCityreservestherighttoupgrade themixedglasscontainersbyperformingacolor sort.If theCitychoosestodoso,NorthernwillstillreceivepaymentbasedupontheQuarterlyAverage MaterialsRevenueReceivedfor mixedglasscontainers.TheprovisionsconcerningQIP paymentsstatedaboveinSection3B3shallapplytoanyQIP-eligibleglassdeliveredby Northern.
2)PETPlasticRolls.CityagreestopayNorthernsixty-ninepercent(69%)ofthe pertonAverageQuarterlyMaterialsRevenueReceivedforPETPlasticRolls.Forpurposesof calculatingpaymentto Northern,thetotaltonsofPETPlasticRollsdeliveredbyNorthernwillbe reducedbyforty-five(45)pounds perpallettoaccountfortheweightofstandardpackaging. 3)Single-MaterialBaledRecyclableMaterials.CityagreestopayNorthernsixty- ninepercent(69%)ofthepertonAverageQuarterlyMaterialsRevenueReceivedforbaled materialsconsistingofasingle material(includingbutnotlimitedtocardboard,waxed cardboardandshrinkwrap)deliveredbyNorthern.Theoneexceptiontotherequirementthat balescontainasinglematerialis“sandwichbales”consistingofcardboardandshrinkwrap,with cardboardbeing incidentaltotheprimarymaterialofshrinkwrap.Baledmaterialsdeliveredby AffiliatedEntitiesfromwithinafive (5)mileradiusoftheentrancetotheNapaMDFin accordancewiththe requirementsspecifiedinthe2004contractbetweentheCityandNRWS, asamended,shallreceivethispricing.

ThepricinganddeliveryofbaledmaterialscollectedorotherwisedeliveredbyNCRWSorother AffiliatedEntitiesfromwithintheCountyofNapacollectionarea,andidentifiedasbeing deliveredtotheNapaMDFonbehalfofNapaCounty(viaNCRWSasitsauthorizedcollection contractor)shallnotbegoverned underthisAgreement.TheCity—CountyMOU,Attachment Two,describesthe termsandproceduresagreeduponbytheCityandtheCountyofNapafor pricingandhandlingofthatbaledmaterial
D.ElectronicWasteandCoveredElectronicWaste.

PursuanttoSection1,NorthernisrequiredtodeliverallElectronicWasteand Covered ElectronicwastereceivedandprocessedattheDRTStothe NapaMDF.Inordertomost efficientlypackageandshiptheElectronicWasteand coveredElectronicWastetomarketand avoidunnecessaryorduplicatehandlingofthematerial,thepartiesagreethatforthisspecific commodityonly,NorthernwillpackageandshipElectronicWasteandCoveredElectronic Wastedirectlytoapermittedelectronicrecyclingprocessor.

TheElectronicWasteandtheCoveredElectronicWastewillbemarketedbyNorthern.

NorthernwillpaytheCityone percent(1%)oftheDRTSBuyer-PaidRevenueforeachtonof ElectronicWasteandCoveredElectronicWastemarketedbyNorthernfromtheDRTS. 8 Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

NorthernwillprovidetheCitywithmonthlyreportsshowingalldetailsconcerningtheprocessing and paymenttransactionscompletedinthepriorcalendarmonthincludingbut notlimitedtothe following:
• Dateeachloadofmaterialwas shipped
•Datepaymentforeachloadwasreceived
•Copiesofallchecksreceived
•Copiesofallpaperworkreceivedwitheachpayment
•Name,address,telephonenumber,contractpersonande-mailaddressofeach recyclingprocessorreceivingtheElectronicWasteand CoveredElectronicWaste •Pricespaid(per pound)foreachtypeofElectronicWasteandCoveredElectronicWaste bymaterialtype(e.g.CRT’s,computerharddrives,etc.)
•Deductionsmadebytheprocessorfromthepaymentforpackagingweight, contaminationandallotheritems
•Destinationofresiduedisposal.

Reportsshallbeinelectronic,sortableformat(Excelpivottablesorequivalent)withhardcopies ofallrecordsprovided(includingcopiesofallpayments,checksandpaperworkreceivedfrom thebuyerofElectronicWasteandCoveredElectronicWaste).CityshallprovideNorthernwith asamplereportingformatforElectronicWasteandCoveredElectronicWaste.Themonthly reportsshallbesubmittedonthefifteenth
(15tu1)
dayofeachmonth.TheCityreservestheright
torequestadditionalinformationconcerningthesaleofElectronicWasteandCovered ElectronicWasteandNorthernagreestoprovideanyadditionalinformationwithinten(10)days ofawrittenrequestforadditionalinformationfromCity.AllrecordsofNorthernpertainingto receipt,packaging,andsaleofElectronicWasteandCoveredElectronicWastefromtheDRTS shallnotbeconsideredproprietaryorconfidentialbyNorthern.

TheprovisionsofthisSection3DconcerningElectronicWasteandCoveredElectronicWaste shallbeeffectiveasofMarch1,2010.

AsmarketsforElectronicWastechangeandadditionalitemsofElectronicWasteareeither addedtoCoveredElectronicWasteorarepaid foreitherduetomarketconditionsornew legislation,suchadditionalitemsshallbetreatedthesameasthosecurrentlybeingmarketedas oftheEffectiveDateofthisAgreement,asdescribedinthissection;suchmaterialsshallbe shippedandsolddirectlyfromtheDRTSbyNorthernandtheCityshallreceiveonepercent (1%) oftheDRTSBuyer-PaidRevenueforeachtonofsuchmaterials.

E.OtherTransfer-OnlyRecyclableMaterials
IntheeventNortherndeliversRecyclableMaterialsnotcoveredbytheotherpricingtermsin thisSection3thataredeliveredinamarket-readyconditionsuchthatthematerialscanliterally betransferredintovehiclesandshippedtomarket,theCitywillpayNorthernsixty-ninepercent (69%)oftheQuarterlyAverageMaterialsRevenueReceivedforsuchmaterials.Thesixty-nine percent(69%)shallbenetofanydeductionsforpackagingmadebyendmarkets,brokersor others.

F.DRTSPre-SortedMixedRecyclableMaterials.

ThepartiesenvisionthatNorthernwilldeliverPre-Processed,Baler-ReadyRecyclableMaterials andPre-Processed,Market-ReadyRecyclableMaterialsfromtheDRTStotheNapaMDFfor baling(whereapplicable)andmarketing.Intheevent thatNortherncannotcompletelytype 9 Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

separatethematerials,anddeliversDRTSPre-SortedMixedRecyclableMaterials,thefollowing proceduresshallbefollowed.Northernshallensurethat(1)thequantityof DRTSPre-Sorted MixedRecyclableMaterialsdeliveredtotheNapaMDFdoesnotexceedtenpercent(10%)of thetotaltonsdeliveredeachcalendaryear,and(2)theresidueand/orcontaminationinthe DRTSPre-SortedMixedRecyclableMaterialsislessthanonepercent(1%)byweight,as measuredbythecharacterizationdescribedherein.Northern shall notutilizeanyother processing,sortingormarketingfacility,recyclingcenterorbrokerforthesorting,processing, balingormarketingofDRTSPre-SortedMixedRecyclableMaterials.

Northernshall providetheCity withwrittennoticeforty-five(45)calendardaysinadvanceof whenitwillneedtodeliverDRTSPre-SortedMixedRecyclableMaterials.Thepartieswillwork togethertoscheduleacharacterizationofthematerialspriortodelivery.Baseduponthe results ofthecharacterization,theCitywillcalculatethe AveragePerTonMarketValueofthematerials andwillsharetheresultswithNorthern.ThepartieswillthenarrangefortheDRTSPre-Sorted MixedRecyclableMaterialstobedeliveredtotheNapaMDF.Northernshallhave therightto requestdeliveryofDRTSPre-SortedMixedRecyclableMaterialsuptofour(4)timesinone calendaryear,excludingemergencysituationsasdescribedherein. (1)CharacterizationoftheMaterials.Acharacterizationofthematerialswillbe conductedbytheCity(mostlikelyusing laborprovidedbytheNapaMDFoperatorwith independentoversightbyeitherCityemployees, independentcontractors,orotheragentsofthe City)todeterminetheAveragePerTonMarketValueofthematerialand thepercentresidue remainingafter thematerialissorted.TheCityshallprescribe thesamplingtechniqueand protocol,thesizeand numberofsamples,thesortingmethodology, themethodforweighing sortedmaterials,themethodforinputtingthedataandtheprotocolusedtocalculate the following:(i)thepercentofeachmaterialinthemix,(ii)theQuarterlyAverageMaterials RevenueReceivedforeachtypeofmaterialinthemix,and(iii)thepercentresidue.Theparties envisionthatthecharacterizationwillbeconductedbytakingsamplesofthemixedmaterialsin sampleboxes andmanuallysortingthematerialsuch thatthesortingbeltsat theNapaMDFare notused,andnormalMDFoperationsarenotimpacted.TheCityreservestherighttochange thesampling methodologyandprotocol,andalsotoutilizeanysorting laboritchooses (includingbutnotlimitedtoCityforces,thirdparities,independentcontractors,internsandother agentsoftheCity)toconductthe characterization.OncetheAveragePerTonMarketValueof thematerialmixisestablished,additionalcharacterizationsmay beconducted atfrequencies determinedatthesolediscretionoftheCity.
(2)EstablishAveragePerTon MarketValueFortheMixedMaterials.Usingthe resultsofthecharacterization,theCitywillcalculatetheAveragePerTonMarketValueforthe mixedmaterialsusingthemethodologylistedinAttachmentSix.TheCityshallusethe QuarterlyAverageMaterialsRevenueReceivedforeachmaterialinthemixtocomputethe AveragePerTonMarketValueofthemixedmaterial.IfnoQuarterlyAverageMaterials RevenueReceivedisavailableforaspecifictypeofmaterial,theCitywillasktheMDFoperator toobtainthebestpossibleestimateofthemarketvalueofthematerialand thatvaluewillbe usedinthecalculation.
(3)PaymentToNorthernlPaymentDueFromNorthern.TheCitywillretainnine percent(9%)oftheAveragePerTonMarketValuefortheDRTSPre-SortedMixedRecyclable Materials.DependingupontheAveragePerTonMarketValuefortheDRTSPre-SortedMixed RecyclableMaterials,eithertheCitywillpayNorthernforthematerialsorNorthernwillpaythe Cityforprocessing thematerials.Themethodusedtocalculatethepaymenttoorfrom 10 Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

NorthernforDRTSPre-SortedMixedRecyclableMaterialsisshowninAttachmentSeven,Part A.
a.Non-CityPaymentofMDFResidueDisposaLTheCitycurrentlypaysfor disposalofresiduefromtheNapaMDF.Ifthischangesinthefutureandthe MDFoperatorisrequiredtopayfordisposalofMDFresidue,theprocedureused tocalculate paymenttoNortherninAttachmentSeven,PartAshallbeadjusted asshowninAttachmentSeven,PartB.
b.NegativeandZeroValueMaterials.Thecalculationprocedureshownin AttachmentSevenshallbeusedtocalculatepaymentsduetoorfromNorthern forDRTSPre-SortedMixedRecyclableMaterialswithanAveragePerTon MarketValueofanyamountlargerthanzero.IftheAveragePerTonMarket ValueoftheDRTSPre-SortedRecyclableMaterialsiszeroora negative number,uptoandincludingnegativethirty-fivedollars (-$35.00)perton,the provisionsofSection3.Hshallapply.
c.ResidueExceedingOnePercent.Intheeventthecharacterizationshows theresiduefortheDRTSPre-SortedMixedRecyclableMaterialsexceedsone percent(1%),
CityshallnotifyNorthernandNorthernshallhaveone week(7calendardays)to furthersorttoreducetheresiduetotheacceptablelevel.Ifasecond characterizationorreviewofresidueshowsresiduestillexceedsonepercent (1%)thisprocessshallberepeated.ThisprovisionshallapplytoDRTSPre SortedMixedRecyclableMaterialsinlieuoftheprovisionsofSection6.A, “ContaminationofLoads,”unlessadditionalcontaminationisdiscoveredinloads ofDRTSPre-SortedMixedRecyclableMaterials,inwhichevent,theprovisions ofSection6.Awillalsoapply.

IntheeventNorthernexperiencesatemporaryemergencysituationsuchasequipment breakdown,labordisputeofotherthanNorthern’semployees(includingstrike,workstoppage, slowdown,sickout,picketing,orotherconcertedjobaction),flood,earthquake,fireorother suddenoccurrencewhichisbeyondthecontrolofandnotthefaultofNorthernthat preventsit fromprovidingforty-five(45)dayswrittennoticetotheCitythatitintendstodeliverDRTSPre SortedMixedRecyclableMaterials,theCitywillacceptDRTSPre-SortedMixedRecyclable Materialsassoonaspossibleforprocessing,(oncescalehouseaccountcodesandother logisticsaresetup)foraadditionalflatfeeoftwentydollars($20.00)pertoninlieuofretaining ninepercent(9%)oftheAveragePerTonMarket ValuefortheDRTSPre-SortedMixed RecyclableMaterials.Thepartieswillthenworkcooperativelytocompleteacharacterizationof thematerialsasdescribedinthissubsectionFassoonaspossible. Theadditionalfeeof twenty dollars ($20.00)pertonshallapplyuntilthe characterizationiscompletedandthe AveragePerTonMarketValueoftheDRTSPre-SortedMixedRecyclableMaterialsbeing deliveredundertheemergency circumstancesisestablishedbytheCity.

Inthe eventofanemergencysituationthathasanexpecteddurationoflessthanthirty(30) calendardays,thepartiesmaymutuallyagreetoutilizeanin-fieldobservationoftheDRTSPre SortedMixedRecyclableMaterials(inlieuofthe characterizationdescribedherein)byviewing thematerialsastheyaresortedattheDRTS,viewingthematerialsastheyaretippedonthe MDFtippingfloor,viewingthe materialsastheyarebeingprocessedattheNapaMDFand viewingtheresidueremainingafterprocessingofthematerials.Thefieldobservationswillbe usedtoestimatethepercentageofeachmaterialtypeinthemixand thepercentofresidue. 11 Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

These estimateswillbeusedtocalculatetheAveragePerTonMarket ValueoftheDRTSPre SortedMixedRecyclableMaterials.OncetheAveragePerTonMarketValueoftheDRTSPre SortedMixedRecyclableMaterialsisestablished,thatpricingshallbeappliedtothematerials and theflatfeeoftwenty dollars($20.00)perton paidtotheCityshallcease.Ifthe parties cannotagreeonthepercentagesormaterials andresiduebaseduponanin-fieldobservation,a characterizationshallbeperformed.

Inthe event,theactualdurationofthetemporaryemergencysituationexceedsthirty(30) calendardays,acharacterizationmustbeperformedasdescribedherein andthe resultsused toestablishtheAveragePerTonMarketValueoftheDRTSPre-SortedMixedRecyclable Materials.

Intheevent thepercentageofresidueasdeterminedbyeitherthefieldestimateorthe characterizationexceedsonepercent(1%),NorthernshallpaytheactualCitytippingfeeatthe DRTSforthequantityofresidueoveronepercent(1%) forthedurationoftheemergency situation.

Theprovisionsinthissectionareintendedbythe partiestoapplyonly totrueemergency situationsasdescribedabove,thatarebeyondthecontrolofandnotthefaultofNorthern,and thatprohibitDRTSsortingoperations.Economicconditionssuchasincreasedcosts,economic downturn,changesinsecondarymaterialsprices,reductionininboundtonnagestotheDRTS, changesinthemixofinboundmaterialstotheDRTS,voluntarydecisionsbyNortherntoreduce sortingoperations,toceasesortingforcertainmaterials,toceasesortingapartcertain materials,andothersuchconditionsshallnotconstituteemergencysituations.

IntheeventNorthernexperiencesmorethanfour(4)emergencysituationswithinany consecutivetwelve(12)monthperiod,theCity’sflatfeeforacceptingDRTSPre-SortedMixed RecyclableMaterialsatthe NapaMDFshallincreasefromtwentydollars ($20.00)pertonto fortydollars($40.00)pertonforthefifth(5th)andallsubsequentemergencysituationsthat occurwithinthetwelve(12)monthperiod.Mixedmaterialsdeliveredunderemergency circumstancesshallbe countedtowardthe tenpercent(10%)capon DRTSPre-SortedMixed RecyclableMaterialscontainedinthissubsectionF.

G.UseofQuarterly AverageMaterialsRevenueReceived.

The partiesagreethatuseoftheQuarterlyAverageMaterialsRevenueReceivedisthe most fairandaccuratemethodtoestablish thepricestobepaidbytheCitytoNorthernformaterials (excludingYardwaste)becauseittakesintoaccountCaliforniaRedemptionValuepayments, contaminationdeductionsand moisturedeductionsbytheend markets, transportationcoststo haulthe materialstomarket,and thelike.AsamplecalculationoftheQuarterlyAverage MaterialsRevenueReceivedforasamplematerialappearsinAttachmentFour.

H.Zero-ValueandNegative-Value Materials.

Thepartiesacknowledge thatsecondarymaterialsmarketsfluctuateduetoworld-wide economicandgeopoliticalconditionsthatarebeyondthecontroloftheparties.Intheeventthat theQuarterlyAverageMaterialsRevenueReceivedforanyofthematerialslistedinSection 1(A)dropstoalevelofZero dollars($0)pertonortoaNegativeValue,the partiesagreeto proceedasfollows:
12 Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

(1)TheCitywillcontinuetoacceptaffectedmaterialssolongastheCity,throughits MDFoperator,canstillmarketthematerialsataNegativeValueofuptothirty-five($35.00)per tonwithinadrivingdistancefromtheNapaMDFofuptothreehundred(300)miles(oneway).

Inthisevent,NorthernwilldelivertheaffectedmaterialstotheNapaMDFbutwillreceiveno paymentforanyofthematerials.
(2)IftheNegativeValueofoneormoreaffectedmaterialsismorethanthirty-five ($35.00)pertonorthemarketismorethanthreehundred(300)miles(oneway)fromtheNapa MDF,Northernmayelecttoeither:
(i)deliverthe materialstotheNapaMDFandpaytheCitythecostdifferential overandabovethirty-fivedollars($35.00)pertonandtransportationcoststo haulthematerialsinexcessofthreehundred(300)miles(oneway),or (ii)ceasedeliveryoftheaffectedmaterial(s)untilsuchtimeasthevalueofthe affectedmaterialsbecomesnegativethirty-five(-$35.00)pertonorbetter, andamarketbecomesavailablewithinthreehundred(300)miles(oneway) fromthe NapaMDF.Ifthisoptionisselected,Northernagreesitwillnot utilizeanyotherprocessingormarketingfacility,recyclingcenterorbroker forthefinalbalingand/ormarketingofanyofthematerialslistedinSection1 A.

IneithereventNorthernwillnotreceiveanypaymentforanyoftheaffectedmaterials.

I.ContaminationofLoads.

IfthereisContaminationintheload(asfurtherdefinedinSection6.A)theCitymaydowngrade thevalueoftheloadandadjusttheamountpaidfortheloadaccordingtothequantityandtype ofContaminationintheload.

SECTION4.INVOICINGANDPAYMENT
A.Invoicing.

NorthernwillsubmitaninvoicetotheCitybythefifteenth(j5th)dayofeachmonthforall materialsdeliveredtothe NapaMDFinthepriorcalendarmonthexceptforYardwaste.The invoicewillshowthenumberoftonsofeachspecifictypeofmaterialdeliveredtothe NapaMDF andtheQuarterlyAverageMaterialsRevenueReceivedforeachmaterial.Asubtotalshowing theamountowedbytheCitytoNorthernwillbeincludedforeachspecificmaterial.Inthecase ofNegativeValueMaterials,thesubtotalwillreflectthenegativevalueofsuchmaterials.Atthe bottomoftheinvoiceallthesubtotalswillbeaddedtogethertoshowthefinalamountdueto NorthernfromtheCity.

ToassistNortherninpreparingthemonthlyinvoice,CitywillsendNorthern,eitherinhardcopy orelectronicformat,theapplicableQuarterlyAverageMaterialsRevenueReceivedforeach materialtype,bythetenth(l0tt)dayofeachquarter.(Example:Forthequarterbeginning January1,2011theCitywillreceivepricingdatafromtheMDFoperatoronDecember20for theperiodAugust21throughNovember20.TheCitywillthencalculatetheQuarterlyAverage MaterialsRevenueReceivedforeachmaterialtypeforthequarterAugust21through November20,andwillprovidethatinformationtoNorthernbyJanuary10.)Thetablein 13 Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

AttachmentNineshowsthekeydatesandtheflowofinformationfortheinvoicingprocess,as wellasthedatesincludedineachquarter.

TheCitywillsendNorthernamonthlysummaryofalltonsreceived,bymaterial type,bythe tenth(ioth)dayofeachmonth.Intheeventthetenth(10th)dayofthemonth orofthequarter fallsonaSaturday,Sunday,orisaholiday,CitywillsendNorthernthemonthlytonnage summaryandthelistofapplicableQuarterlyAverageMaterialsRevenueReceivedonorbefore thenextbusinessday.

ForYardwastedeliveredbyNortherntotheNapaMDF,theCitywillissueaninvoicebythe fifteenth(i5th)dayofeachmonthshowingthe numberoftonsofYardwastedeliveredand the amountduetotheCity.YardwastetonnageswillbethoserecordedattheNapaMDFscale house.

B.Payment.

CitywillpayeachinvoicereceivedfromNorthernwithinforty-five(45)daysofreceipt.Payment willbebaseduponthenumberoftonsofeachmaterialdeliveredtotheNapaMDFasrecorded attheNapaMDFscalehouse.

NorthernwillpayeachinvoicereceivedfromtheCityforYardwastewithinforty-five(45)daysof receipt.

C.DepartmentofResourcesRecyclingand RecoveryRegulations.

BothpartiesagreetocomplywithallregulationsoftheCaliforniaDepartmentofResources RecyclingandRecovery(“CalRecycle”)andanysuccessoragenciesthat administerthe CaliforniaBeverageContainerRecyclingandLitterReductionAct,includingbutnotlimitedto regulationsconcerning(1)trackingoftonnagesandmaterialtypesand(2)preparationof documentationrequiredfortransactionsinvolvingCRVmaterialsandpaymentsforsame,as set forthinPublicResourcesCodeDivision12.1,Chapter1,Section14500etseq.andall regulationsrelatingthereto.

D.RetroactivityofPricingforMaterialsReceivedPriorToEffectiveDate.

DuetotheurgencyofopeningthenewBuyBackCenterattheDRTS,Northernbegan deliveringmaterialstothe NapaMDFonMay1,2008,priortotheeffectivedateofthis Agreement.NorthernwaspaidforthosematerialspursuanttothepricingintheCity-County MOU.ThepartiesagreethatCitywillpayNorthernthedifferencebetweenthepricesalready paidpursuanttotheCity-CountyMOUand thepriceslistedinSection3ofthisAgreementfor thematerialsdeliveredfromMay1,2008throughDecember31,2009.Inaddition,theCitywill payNortherninterestonthebalanceduefortheperiodMay1,2008throughDecember31, 2009atthe rateof1.91%whichreflectstheaveragerateofinterestearnedbytheCityonits investmentportfoliofortheperiodMay1,2008throughDecember31,2009.

Forthe sole purposeofestablishingpricestobepaidtoNorthernfortheperiodofthe retroactivepaymentformaterialsdeliveredbetweenMay1,2008andDecember31,2009,and onlyforthispurpose,theCitywillcalculateastraightaverageofallrevenue depositedinthe CityofNapa’srevenueaccountforeachmaterialtype deliveredbyNorthernduringthisperiod.

Thestraightaveragewillbecalculatingbyaddingallrevenuereceivedanddepositedintothe City’srevenueaccountfromsaleofeachmaterialtypebyNRWSbetweenApril21,2008and 14 Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

December20,2009,dividedbythetotaltonsofthatmaterialsold(usingBuyerPaidTons) duringthesameperiod.TheCitywilluseadetailedAttachmentDD MDFMaterialsPaidSales ReportfromNRWS,whichisanattachmenttothe2004CitycontractwithNRWS,showingall thematerialtypesmarketed,theprices,tons,CRVtotalsandotherinformationformaterials salesdepositsmadetotheCity’srevenueaccountduringtheperiodApril21,2008through December20,2009tocalculatethestraightaveragepricesfortheretroactivepayment.The partiesagreethatQualityIncentivePaymentsandtheAnnualCurbsidepaymentfrom CalRecycleshallbeexcludedfromtherevenueusedtocalculatethestraightaverageprices.

Thepartiesfurtheragreethattheuseofastraightaveragetodeterminepricingwillonlybe usedforthepurposeoftheretroactivepaymenttoNorthern.ThepricespaidtoNorthernfor materialsdeliveredbyNorthernfromJanuary1,2010forwardshallbeestablishedby calculatingtheQuarterlyAverageMaterialsRevenueReceivedforeachtypeofmaterialas describedinSection3G.

Pursuanttothe2004contractbetweentheCityandNRWS,asamended,theCitywillreceive thespecialAttachmentDDreportonorbeforeAugust16,2010andwillprovidethecalculated straightaveragepricestoNorthernnolaterthantwenty(20)daysafterreceiptofsaidspecial AttachmentDDreport.NorthernwillthensubmitaninvoicetotheCityforthedifference betweenthecalculatedprices andthepricesNorthernwas alreadypaidformaterialsdelivered totheNapaMDFfortheperiodMay1,2008throughDecember31,2009.Theinvoicewillshow thecalculationsofthedifferenceintheamountalreadyreceivedbyNorthern,thenew calculatedstraightaveragepricesprovidedbytheCityforeachmaterialtypeandthetonsof eachmaterialtypedeliveredduringtheperiodMay1,2008throughDecember31,2009.The invoicewillalsoshowthecalculationsforthe interesttobepaidbytheCityasdescribedinthis Section.TheCitywillpayNorthern’sinvoicefortheretroactivepaymentwithinforty-five(45) daysofreceipt.

Ifsubmittalofthespecial AttachmentDDreportfromNRWSisdelayed,thedateonwhichthe CitywilldeliverthecalculationofthestraightaveragepricesforeachmaterialtoNorthernshall bedelayedbythesamenumberofdaysthattheAttachmentDDreportislate,andtheabove- describedscheduleforcompletingtheretroactivepaymentshallbeadjustedaccordingly.

ForallmaterialsdeliveredbyNorthernbetweenJanuary1,2010andMarch31,2010theCity willreceivethesecondspecialAttachmentDDreportshowingpricesreceivedfortheperiod August21,2009throughNovember20,2009onorbeforeAugust16,2010andtheCitywill providethecalculatedQuarterlyAverageMaterialsRevenueReceivedpricestoNorthernno laterthantwenty(20)daysafterreceiptofthesecondspecialAttachmentDDreportfrom NRWS.NorthernwillthensubmitaninvoicetotheCityformaterialsdeliveredJanuary1 throughMarch31,2010thatprovidesalltheinformationanddetailasdescribedherein.City willpayNorthern’sinvoicewithinforty-five(45)daysofreceipt.Ifsubmittalofthesecondspecial AttachmentDDreportfromNRWSfortheperiodAugust21,2009throughNovember20,2009 islate,thedateonwhichtheCitywilldeliverthecalculationoftheQuarterlyAverageMaterials RevenueReceivedtoNorthernshallbedelayedbythesamenumberofdaysthatthe AttachmentDDreportislate,andthescheduleforNorthernsubmittingitsinvoiceandreceiving paymentformaterialsdeliveredJanuary1throughMarch31,2010shallbeadjusted accordingly.

WithregardtoElectronicWasteandCoveredElectronicWasteonly,thefollowingprovisions shallapply.ThepartiesagreethatfromApril21,2008throughFebruary28,2010revenues fromthesaleofElectronicWasteandCoveredElectronicWastebyNorthernwereinadvertently commingledwithrevenuesreceivedbyits AffiliatedEntityNRWSfromsaleofElectronicand 15 Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

CoveredElectronicWastebyNRWSfromtheNapaMDFandweredepositedintotheCity’s revenueaccount.PursuanttoSection12.06oftheCity-NRWScontract,NRWSwaspaidthirty percent(30%)ofthisrevenue.ThepartiesagreethatCitywillretainonepercent(1%)ofthe revenuefromsaleofNorthern’sElectronicandCoveredElectronicWasteduringthisperiodof time,Northernwillreceivesixty-ninepercent(69%)oftherevenue,andNRWSwillretainthe thirtypercent(30%)oftherevenuealreadyreceivedfromCity.ForallElectronicWasteand CoveredElectronicWastesoldbyNorthernbeginningMarch1,2010,theprovisionsofSection 3Dshallapply.

TheCityhasagreedtotheabovescheduleinordertocompletetheretroactivepaymentsto Northerninatimelymanner.However,thisscheduledoesnot givetheCityadequatetimeto performduediligencereviewtoverifyandauditallthenewdatathatwillbesubmittedbyNRWS withregardtomaterialssalesdatingbacktoMay2008inthespecialAttachmentDDreports.

Therefore,the partiesagreethatiftheCityfindsdiscrepancies,errorsorirregularitiesinthe datathatultimatelyaffecttheamountofthepaymentsthatwillhavebeenmadetoNorthernas describedinthisSection4D,theCitymayadjusttheamountoftheaffectedpayment accordinglyatanytimeuptoandincludingDecember31,2010.Insuchevent,Cityshallnotify Northerninwritingoftheamountandreasonsfortheadjustmentandwillprovidecopiesof electronicorhardcopyrecordsconcerningthetransaction(s)inquestion andtheCity’s calculationsoftheadjustmenttothepayment.

ForallmaterialsdeliveredbyNortherntotheNapaMDFonandafterApril1,2010,thestandard pricingandtermswillapplyasdescribedinthisAgreement.Thetimingoftheregularinvoicing processwillbeasshowninAttachmentNine.

SECTION5.TERM
TheTermofthisAgreementshallbeginonJuly6,2010andendonDecember31,2015.

SECTION6.OTHERAGREEMENTS
A.ContaminationofLoads.

TheCityoritsrepresentativewillissueContaminationnoticestoNorthernasfollows:
1)Pre-ProcessedBaler-ReadyRecyclableMaterials,Pre-ProcessedMarket-Ready RecyclableMaterials,andDRTSPre-SortedMixedRecyclableMaterialsdeliveredtotheNapa MDFwhichcontainonepercentor more(1%ormore)byweightofmaterialsconstituting Contaminationthatwillneedtoberemovedbeforethematerialmaybemarketed. 2)DRTSPre-SortedMixedRecyclableMaterialsdeliveredtotheNapaMDFwhich containonepercentormore(1%ormore)byweightofmaterialsconstitutingContamination thatwillneedtoberemovedbefore thematerialmaybemarketed. 3)Yardwaste,ElectronicWasteandCoveredElectronicWastedeliveredtothe NapaMDFwhichcontainfivepercent(5%)ormorebyweightofmaterialsconstituting Contaminationthatwillneedtoberemovedbeforethematerialmaybeprocessedand marketed.
4)ForanyloadcontaininganyHazardousWaste.

ForanyloadscontainingContaminationasdescribedherein,theCitymay:
16 Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

(i)directtheoperatoroftheNapaMDFtoprocessthe Contaminatedloadandcharge Northerna“Contaminatedloadsurcharge”fortheload,whichshallbecalculatedbased uponthestandardpertonContaminatedloadsurchargeratepostedattheNapaMDF scalehousemultipliedbythetotalnumberoftonsintheload;or
(ii)directthecurrentoperatoroftheNapaMDFtoreloadtheContaminatedloadand requireNortherntoremovetheload fromthe NapaMDF,andchargeNortherna standard“reloadfee”whichshallbetheratepostedat thescalehouse.

TheCitywillprovidenotificationofContaminatedloadstoNorthernwithintwenty-four(24)hours ofeithertheCity’sdiscoveryoftheContaminationornotificationtotheCityfromitscontract operatorofdiscoveryoftheContamination.

Northernshall complywithallHazardousWasteexclusionprogramregulationsadoptedbythe CityandwithallStateandFederalHazardousWasteexclusion regulations.

B.Insurance.

Northernshallprocurefromaninsurancecompanyorcompanieslicensedtodobusinessinthe StateofCaliforniaandshallmaintaininforceatalltimesduringtheTermthefollowingtypes andamountsofinsurance:
1)ComprehensiveGeneralLiabilityInsurancewithacombinedsinglelimitofnot lessthanOneMillionDollars($1,000,000) peroccurrenceandOneMillion Dollars($1,000,000)annualaggregatecoveringallclaimsandalllegalliabilityfor personalinjury,bodilyinjury,deathandpropertydamage,includingthelossof usethereof,arisingoutof,oroccasionedinanywayby,directlyorindirectly, Northern’sactivitiespursuanttothisAgreement.
2)ComprehensiveAutomobileLiabilityInsurancewithacombinedsinglelimitofnot lessthanOneMillionDollars($1,000,000)peroccurrenceandOneMillion Dollars($1,000,000)annualaggregatecoveringallclaimsandalllegalliabilityfor personalinjury,bodilyinjury,deathandpropertydamage,includingthelossof usethereof,arisingoutof,oroccasionedinanywayby,directlyorindirectly, Northern’s activitiespursuanttothisAgreement.
3)Workers’CompensationandEmployer’sLiabilityinsurancecoveringthe employeesinstatutoryamountsand otherwiseincompliancewiththelawsofthe StateofCalifornia.NorthernshallmaintainEmployer’sLiabilityinsuranceinan amountnotlessthan OneMillionDollars($1,000,000)peraccidentordisease.

The insurancepoliciesrequiredbythissectionshallbeissuedbyaninsurancecompanyor companieswitharatinginthemostrecenteditionofBest’sInsuranceReportsofsizecategory XorlargerandaratingclassificationofAorbetter.Northernshallsubmitcopiesofinsurance certificatesshowingtheabovelistedinsurancecoveragetotheCitywithinthirty(30)daysofthe EffectiveDateofthisAgreement, andshallsubmitupdatedcertificatesannuallyonorbefore MayIofeachyearoftheTerm.

C.Indemnification.

Northernshallindemnify,defendandholdharmlessCity, itsofficers,employeesandagents, (collectivelythe“Indemnitees”)fromandagainstanyandallloss,liability,penalty,forfeiture, 17 Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

claim,demand,action,proceedingor suit,ofanyandeverykindanddescription,whether judicial,quasi-judicialoradministrativeinnatureincluding,butnotlimitedto,injurytoanddeath ofanypersonanddamagetopropertyorforcontributionorindemnityclaimedby thirdparties (collectively,the“Claims”),arisingoutoforoccasionedinanywayby,directlyorindirectly, Northern’sperformanceof,oritsfailuretoperform,itsobligationsunderthisAgreement.The foregoingindemnityshallnotapplytotheextentthattheClaimiscausedsolelybythe negligenceorintentionalmisconductofCity,itsofficers,employeesoragents,but shallapplyif theClaimiscausedbythejointnegligenceofNorthernorotherpersonsincludinganyofthe Indemnitees.UpontheoccurrenceofanyClaim,Northern,atNorthern’ssolecostand expense,shalldefend(withattorneysreasonablyacceptabletoCity)City,itsofficers, employees,andagents.Northern’sdutytoindemnifyanddefendshallsurvivetheexpirationor earlierterminationofthisAgreement.

D.AnnualMeeting.

ThepartieswillholdanannualmeetinginJanuaryofeachyeartodiscussmarketconditions, plansfortheyearandotherissuesgermanetothisAgreement.TheCitywillcontactNorthern toscheduletheannualmeeting.

E.CapitalizedTerms.

CapitalizedtermsinthisAgreementshallhavethemeaningsassignedtotheminAttachment One,unlessthecontextindicatesotherwise.

F.Assignment.

NorthernmaynotassignanyofitsrightsordutiesunderthisAgreementwithoutthepriorwritten consentoftheCity.

G.BindingOnSuccessors.

Alloftherightsanddutiesofthepartiesshallinuretothebenefitof,andbebindingupon, their respectivesuccessorsandpermittedassigns.

H.Notices.

AllnoticesgivenunderthisAgreementshallbeinwriting.Noticesshallbesent:

IftotheCity:CityofNapa
DepartmentofPublicWorks
1600FirstStreet
P.0.Box660
Napa,California94559
Attn:MaterialsDiversionAdministrator
Facsimile:(707)257-9522
18 Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

IftoNorthern:NorthernRecyclingOperationsandWasteServices,LLC P.O.Box177
Napa,California94559
Attn:GregKelley,ManagingMember
Fax:(707)224-2707
Noticeshallbesufficientlygivenwhen(a)personallydeliveredtotherecipient,(b)mailedfirst classpostageprepaid,(c)deliveredbyovernightdeliveryservicewithchargesprepaid,or(d) sentbyfacsimiletothelastfacsimilenumberofrecipientaslongasa duplicatecopyofthe noticeispromptlygivenbyfirstclassmailorthereceivingpartydeliversawrittenconfirmation receipt.Eitherpartymaychangetheaddresstowhichnoticestoitaretobesentbymeansofa noticedeliveredtotheotherpartyasprovidedabove.

I.NoRightsofThirdParties.

NothinginthisAgreement,expressorimplied,isintendedtoconferuponanyperson,otherthan thepartiesandtheirrespectivesuccessorsandpermittedassigns,anyrightsorremedies.

J.FailureToPerform.

If,andforaslongas,performancebyapartyismadeimpossibleorextremelyimpracticableby actsofGod,casualty,StateorFederalgovernmentaction,civilcommotion,laborunrest (includingstrike,workstoppage,slowdown,picketingorotherconcertedjobaction),actsof terrorismorothercausesnotthefaultofandbeyondthereasonablecontroloftheparty obligatedtoperform,performancebythatpartyisexcused.Thissectiondoesnotexcusea failuretopaymoneywhendue.

K.NapaMDFUnavailable.

IftheNapaMDFisnon-operationalforaperiodlongerthanthree(3)daysbutlessthanthirty (30)days,CitywillgivewrittennoticetoNorthernindicatingtheCity’splanstorestoretheNapa MDFtooperationalstatusandtheCity’sestimateoftheperiodoftimetheMDFwillbe unavailable.WhiletheNapaMDFisunavailable,Northernwillberelievedofitsobligationto deliverthematerialslistedinSection1totheNapaMDFandmustlocateanalternate processingfacilitywhiletheNapaMDFisnotinoperation.

IftheNapaMDFisdestroyedorsubstantiallydamagedbyearthquake,fire,orothercause,and isnon-operationalforoveronehundredtwenty(120)daysandiftheCityelectsnottorebuildor reconstructit,thisAgreementwillterminatethirty(30)daysafter theCitygiveswrittennoticeto Northernofitselection.IftheCityelectstorebuildorrepairtheNapaMDFbutworkisnot completedwithin10monthsofwrittennoticetoNorthernoftheCity’sintentiontorebuildor repair,theCitywillnotifyNorthernoftheplanneddateofoperationandNorthernwillcontinueto utilizeanalternativeprocessingfacilityuntilthat date,afterwhichNorthernwillresumeuseof theNapaMDF.CitywillprovidewrittennoticetoNorthernatleastsixty(60)dayspriortothe datewhentheNapaMDFwillbecomeoperational,soNorthernmaynotifythealternate processingfacility(s)thatitwillresumeuseoftheNapaMDFforallofthematerialslistedin Section1AasofthedateintheCity’snoticetoNorthern.

IfoneormoreDRTSNewMaterial(s)areidentifiedduringthetimethattheNapaMDFis unavailable,theCity’srightoffirstrefusalshallnotbewaived.Once theNapaMDFbecomes 19 Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

operational,theCityshallhaveuptoninety(90)daystoexerciseitsrightoffirstrefusalto accepttheDRTSNewMaterial(s)pursuanttoSection1.C.

L.TimeoftheEssence.

TimeisoftheessenceinthisAgreementandeachofitsprovisions.

M.InvalidationofSingleTermorProvision.

IfanytermorprovisionofthisAgreementisheldinvalidorunenforceable,theremainderofthe Agreementshallnotbeaffectedandthecontractwillbeenforcedasiftheinvalidor unenforceableprovisionhadnotbeencontainedherein.

N.NoWaiver.

The waiverbyeitherpartyofanybreachorviolationofanyprovisionsofthisAgreementshall notbedeemedtobeawaiverofanybreachorviolationofanyotherprovisionnorofany subsequentbreachofviolationofthesameoranyotherprovision.Thesubsequentacceptance byeitherpartyofanymoniesthatbecomeduehereundershallnotbedeemedtobeawaiverof anypre-existingorconcurrent breachorviolationbytheotherpartyofanyprovisionofthis Agreement.

0.TitleandHeadings.

ThetitleandheadingsofthesectionsofthisAgreementareintendedsolelyforreferenceand donotmodify,explain,orconstrueanyprovisionofthisAgreement.Allreferencestosections andrecitalsrefertothesectionsandrecitalsofthisAgreement.InconstruingthisAgreement, thesingularformshall includethepluralandviceversa.ThisAgreementshall notbeconstrued asifithadbeenpreparedbyoneoftheparties,butratherasifbothpartieshavepreparedthe Agreementwiththeassistanceofindependentlegalcounselforeach.

P.SignatureAuthority.

AllpersonsexecutingthisAgreementonbehalfofapartywarrantthattheyhavetheauthorityto executethisAgreementonbehalfofthatparty.

Q.Attachments.

TheattachmentstothisAgreement numberedOnethroughNineareapartofthisAgreement andareincorporatedintoitbythisreference.

R.ApplicableLaw.

ThisAgreementshallbegovernedby,andconstruedandenforcedinaccordancewith,thelaws ofCalifornia.

S.Interpretation.

EachpartyhasparticipatedinthepreparationofthisAgreementwiththeassistanceoflegal counseltotheextentdesired.Accordingly,thisAgreementshallbeinterpretedandconstrued reasonablyand neitherfornoragainsteitherparty.
20 Attachment AA
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EXHIBIT A

T.GoodFaithandFair Dealing.

BothpartieseachacknowledgetheirobligationunderCalifornialawtoactingoodfaithtoward, anddealfairlywith,eachotherwithrespecttothisAgreement.Neitherpartywillemployany artifice,businessstructureorotherstratagemtocircumventorunderminethespiritandpurpose ofthisAgreementorthespiritandpurposeoftheCity-NRWS2004contract,asamended.

U.Amendment.

ThisAgreementmaynotbemodifiedoramendedinanyrespectexceptbyawritingsignedby theparties.

V.EntireAgreement.

ThisAgreement,includingtheAttachments,representsthefullandentireagreementbetween thepartieswithrespecttothematters coveredhereinandsupersedesallpriornegotiationsand agreements,eitherwrittenororal.

INWITNESSWHEREOF,thepartieshaveexecutedthisAgreementasofthe dayand yearfirstabovewritten.
21 Attachment AA
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EXHIBIT A

CITYOFNAPA:NORTHERNRECYCLINGOPERATIONS

ANDWASTESERVICES,LLC,A

CALIFORNIALIMITEDLIABILITY
COMPANY*:

By:______________________________
(Signature)
Jacques_R._LaRochelle,_PublicWorks_Director
__________________________________
(TypeNameandTitle)(TaxID.Number)
ATTEST:By:
________________________
(Signature)
___________________________________
GregKelley,ManagingMember
(Signature)(PrintNameandTitle)
DorothyRoadman,CityClerkBy:_____________________________ (TypeNameandTitle)(Signature)
(PrintNameandTitle)
COUNTERSIGNED:
______________________
*Unlesscorporateresolution
_________________________________________
delegatesanindividualtosign
(Signature)contracts,anagreementwitha
corporationshallbesignedbythe
PresidentorVicePresidentandthe
AnnMehta,CityAuditorSecretaryorAssistantSecretaryof
(TypeNameandTitle)thecorporation.Ageneralpartner
shallsignonbehalfof ageneral
partnership.Themanagingmember,
ifauthorized,maysignonbehalfofa
limitedliabilitycompany.

APPROVEDASTOFORM:
(Signature)
MichaelBarrett,CityAttorney
(TypeNameandTitle)
Budget Code: ExpenditureAccount#51005-58911(MDF-Facility,PaymentforMaterials) RevenueAccount#51005-33402(MDFFacility,MDFGateFee
22 Attachment AA
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EXHIBIT A

LISTOF ATTACHMENTS
AttachmentOne.Definitions
AttachmentTwo.MemorandumofUnderstandingBetweentheCountyofNapaandtheCity ofNapadatedMay3,2005
AttachmentThree.Producer PriceIndexCalculationtoAdjustYardwastePrice AttachmentFour.SampleCalculationofQuarterlyAverageMaterialsRevenueReceived AttachmentFive.NapaMDFOperatingRegulations
AttachmentSixCalculationofAveragePerTonMarketValueforDRTSPre-Sorted MixedRecyclableMaterials
AttachmentSevenCalculationofPaymenttoorFromNorthernForDRTSPre-SortedMixed RecyclableMaterials
AttachmentEightRequired FormatFor WrittenInformationOnEachLoadDeliveredTo TheNapaMDF
AttachmentNineScheduleForPreparationofQuarterlyAverageMaterialsRevenue ReceivedByCityandInvoicingByNorthern
Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

ATTACHMENTONE

DEFINITIONS

1.“Affiliated Entity”meansanyPersonwhichisrelatedtoNorthernbyvirtueofadirector indirect ownershipinterestorcommonmanagement.AffiliatedEntitiesinclude(1)aPerson,in whichNorthernhasadirect orindirectownershipinterest,(2)aPersonwhichhasadirect or indirect ownershipinterestinNorthern,and(3)aPersonwhichisownedorcontrolledbyPerson whichhasadirect orindirect ownership interestinNorthern.Forpurposesofdetermining whetheranindirectownershipinterestexists,theconstructiveownership provisionsofthe InternalRevenueCode,ineffectasofthisEffectiveDate,shallapply except that“tenpercent (10%) shallbesubstitutedfor“fiftypercent(50%)”inSection318(a)(2)(C)and318(a)(3)(C).

2.“Agreement”meansthisAgreementbetweentheCityandNortherndatedasof July6,2010,includingallattachmentsandanyamendmentshereto.

3.“Buyer PaidTons”meansthepricethatapurchaser paidforaspecifiednumberoftons inagivenmaterialsshipmentorloadthatismarketedbyNRWSfromthe MDF.BuyerPaid Tonsmay differfromtheactualnumberoftonsintheoutboundweightofthematerialstakenat theMDFscalesduetomoisture, contamination, packagingweight, orotherdifferenceinthe weightoftheloadwhenitisweighedatthebuyer’sscales.

4.“CaliforniaRedemptionValue”(“CRy”)meansthe valueestablishedbyCaiRecycle,or anysuccessoragencies, for eachtypeofbeveragecontainer,thatispaidbyrecyclingcenters, processorsandCalRecycleasdescribedintheCaliforniaBeverageContainerRecyclingand LitterReduction Actof1986(PublicResourcesCodeDivision12.1,Chapter1,Section14500et seq.). “CRVMaterial”meansanymaterialthathasaCRVvalueestablishedbythestateand paid byrecyclingcenters,processorsandstateagencies.

5.“Contamination”meansmaterialsmixedinwith Pre-Processed,Market-Ready RecyclableMaterials,Pre-Processed,Baler-ReadyRecyclableMaterials,Yardwaste,Covered ElectronicWaste,ElectronicWaste,or DRTSNew Materials that wouldreducethequalityand valueofthematerialstoendmarkets.Forexample, thepresenceofglassinaloadofmixed paperwouldbeconsideredContamination.ThelevelofunacceptableContaminationis describedinSection6(A)ofthisAgreement.

6.“CoveredElectronicWaste”or“Covered ElectronicDevice”or“CoveredE-Waste” meansadiscarded videodisplay device containingascreengreater thanfourinches,measured diagonally,asdefinedintheregulationsadoptedbytheCaliforniaDepartmentofToxic SubstancesControlpursuanttosubdivision(b)ofSection25214.10.1oftheCaliforniaHealth andSafetyCode,andasfurtherdefinedinSection42463oftheCaliforniaPublicResources Code.WithregardtothisAgreement, Covered ElectronicWastereferstodevicesforwhichthe statecollectsarecyclingfeefromretailersandforwhichthestatereimbursescollectorsand processorswhorecyclesuchwaste.

Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

7.“CRyCP”meansCRVmaterials thatwerecollectedaspartofacollectionprogramin theStateofCalifornia.WhensuchmaterialsaremarketedfromtheNapaMDFthepricereceived forthematerialswillincludeapaymentfromCalRecycle, orany successoragencies,thatis baseduponthe specificsourceofthematerials,inthiscase,acollectionprogram.Theterm “CRyCP”isappliedasamodifiertoaspecificmaterialtype.Forexample“PETCRVCP” meansPETplasticwithCRVvaluethatwascollectedthroughacollectionprogram.This designationindicatesthematerialiseligibleforaCRVpaymentforPEToriginallycollected throughacollectionprogram,whichdiffersfromthepaymentforPEToriginallydeliveredtoa buyback centerorcollectedthroughacurbsiderecycling program.

8.“CRyCS”meansCRVmaterialsthatwerecollectedviaacurbsiderecyclingprogramin theStateofCalifornia.WhensuchmaterialsaremarketedfromtheNapaMDFtheprice receivedforthematerialswill includeapaymentfromthe CalRecycle, oranysuccessor agencies,thatisbaseduponthespecificsourceofthematerials,inthiscase,acurbsiderecycling program.Theterm“CRyCS”isappliedasamodifierto aspecificmaterialtype.For example, “HDPECRVCS”meansHDPEplasticwithCRVvaluethatwascollectedbyacurbside recyclingprogram.ThisdesignationindicatesthematerialiseligibleforaCRVpaymentfor HDPEcollectedthroughacurbsiderecyclingprogram whichdiffersfrom thepaymentforHDPE originallydeliveredtoabuyback centerorcollected throughacollectionprogram.

9.“CRVRC”meansCRVmaterialsthatweredeliveredtoabuybackrecyclingcenterand forwhichaconsumerorcustomerwaspaidthespecifiedredemptionvalueestablishedby CalRecycle,or anysuccessoragencies.WhensuchmaterialsaremarketedfromtheNapaMDF theprice receivedforthematerialswill includeapaymentfromtheCalRecycle,oranysuccessor agencies,thatisbaseduponthespecific sourceofthematerials,in thiscase,abuybackcenter.

Theterm“CRyRC”isappliedasamodifiertoaspecificmaterialtype.Forexample, “AluminumCRVRC”meansaluminum withCRVvaluethatwas acceptedatabuybackcenter.

ThisdesignationindicatesthematerialiseligibleforaCRVpaymentforaluminumacceptedata buybackcenter,whichdiffersfromthepaymentforaluminumoriginallycollectedin a collectionprogramorinacurbsiderecyclingprogram.

10.“DevlinRoadTransferStation”or“DRTS”meanstheMunicipalSolidWastetransfer facility locatedat889DevlinRoad,intheunincorporatedareaofNapaCounty,whichisowned bytheNapa-VallejoWasteManagement Authority(“Authority”)andwhichiscurrently operatedbyNorthern pursuanttoanAgreementwiththeAuthoritydated March1,2007.

11.“DRTSBuyer-PaidRevenue” meansallrevenuereceivedbyNorthernfromsaleof ElectronicWasteandCoveredElectronicWastereceivedattheDRTS.DRTSBuyer-Paid RevenueincludesallfundspaidtoNorthernby theBuyer.The partiesagreetheend-marketfor theElectronic WasteandCoveredElectronicWastewillhave takencertaindeductionsoutofthe paymentforpackagingweight,contaminationandpotentiallyotheritems.However,Northern shallnotmakeanyadditional deductionsfortransportation,brokeragefees,sortingor anyother costs.

12.“DRTSNewMaterials” meansmaterialsnotlistedinSection1,thataredeliveredtothe DRTS andthatrequirebalingandlormarketing.PursuanttoSection1CtheCity hasthe rightof Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

firstrefusaltobaleandmarketsuchmaterials.Thefollowing materialsareexcludedfromDRTS NewMaterials:loose,unbaledscrapmetal,wood,drywall,sheetrock,concreteandasphaltthat arealreadybeingsortedandmarketed directly by NorthernfromtheConstructionand DemolitionsortinglineattheDRTSasofJanuary1,2008.

13.“DRTSPre-SortedMixedRecyclable Materials” meansamixoftwoormoreRecyclable MaterialsfromtheDRTSdeliveredbyNorthern,thathave beencollected,stored,deliveredor pre-sortedsuchthatdifferentmaterialtypesaremixedtogetherandarenotcompletelysourceor typeseparated.Suchmaterialsmustbefurthersortedandprocessed before theyarereadytogo tomarket. DRTSPre-SortedMixedRecyclable MaterialsdoesnotincludeSingleStream RecyclableMaterials,regardlessoftheirresiduecontent.

14.“ElectronicWaste”or“E-Waste”meansdiscardedelectronicdevicesboth withand withoutscreensincludingcomputers,stereos,cellulartelephones,electronicgames,PDA’sand othersimilardevices.With regardtothisAgreement, ElectronicWaste referstowasteforwhich thestatedoesnotcollectarecyclingfeeandforwhichthestatepaysnocollectionorprocessing feefortherecyclingofsuchwaste,alsoknownasnon-coveredelectronicwaste.

15.“HazardousWaste”meansawaste,orcombinationofwasteswhich becauseofits quantity,concentrationorphysical,chemicalorinfectious characteristics,maydoeitherofthe following:(1)cause,orsignificantlycontributeto,anincreaseinmortalityoranincreasein seriousirreversible,orincapacitating reversibleillness;(2)poseasubstantialpresentorpotential hazardtohuman healthorenvironmentwhen improperlytreated,stored,transportedordisposed oforotherwisemanaged.HazardousWasteincludesallsubstancesdefinedashazardouswaste, extremely hazardous wasteoracutely hazardouswasteinCaliforniaHealthandSafetyCode Sections25110.02,25115and25117 orinfutureamendmentstoorrecodificationsofsuch statutesoridentifiedandlistedashazardous wastebytheU.S.EnvironmentalProtection Agency pursuanttotheResource ConservationandRecoveryAct(42U.S.C. Sections6901,et seq.).

16.“MonthlyAverageMaterialsRevenue Expected”meansthe averageofthe revenue expectedbytheCity foraspecificmaterial marketedfromtheNapaMDF for themonthin which eitherpartymakesawrittenrequesttotheother (pursuanttoSection3F) toutilizea Monthly AverageMaterialsRevenueExpectedinsteadoftheQuarterly AverageMaterials RevenueReceived.Toarriveatthe averagerevenueexpectedtobereceivedforaspecified materialtypetheCitywillperformthefollowing calculation:(1)Foreachplannedsales transaction(booking,purchaseorder,etc.)multiplythenumberoftonsbeingsoldbytheprice pertonlistedinthebookingorpurchaseorder.(2)Addthenetdollarsofrevenue expectedfrom eachplannedsalestransaction(excluding estimatedcostsforfreight,taxes,brokerfees,and any other charges)toarriveatatotalrevenueexpectedfromsaleofthe specificmaterialfor the month.(3)Dividethetotalrevenue expectedforthemonthbythe totalnumberoftonsofthe materialbeingmarketedinalltheplannedsalestransactionsforthemonth.(4)Thisresultsina weightedaveragepriceper tonofrevenueexpectedfromthesalestransactions.Asample calculationofthe“MonthlyAverageMaterials RevenueExpected” appearsinAttachmentFour PartB.

Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

TheMonthlyAverageMaterialsRevenueExpectedbytheCitywill reflectonehundredpercent (100%)oftherevenueexpectedtobereceivedbytheCityforsaleofthespecifiedtypeof material,priortotheseventypercent/thirtypercent(70%/30%)revenuesplitwiththeoperatorof theNapaMDF.

17.“MunicipalSolidWaste”or“MSW”meansallfractionsofdiscardedputrescibleand non-putresciblesolid,semi-solidandliquidwastes,includinggarbage,trash,refuse,rubbish, ashes,industrialwastes,discardedhomeandindustrialappliances,manure,vegetableoranimal solidandsemi-solidwastes, andotherdiscardedsubstancesormaterials.

18.“NapaMDF”means theCityofNapaMaterialsDiversionFacilitylocatedat820Levitin Way,NapaCounty,ownedbytheCityofNapa.

19.“NegativeValueMaterials”or“NegativeValue”meansmaterialswhich,during downturnsinthesecondarymaterialsmarket,willonlybeacceptedbyendmarketsifapriceis paidforacceptanceofthematerial.Forexample,understrongmarketconditions,atonofmixed paperwouldhaveapositive valueofonehundreddollars($100.00).Inadownmarketthesame tonofmixedpapercould haveanegativevalueoftendollars($10.00)perton,meaningthat insteadofpayingtheCityfor thematerial,themarketwouldchargetheCitytendollarsperton toacceptthematerial.

20.“Person”includesanyindividual,firm,association,organization,partnership, corporation,businesstrust,jointventure, theUnitedStates,theStateofCalifornia,theCounty, municipalityor specialpurposedistrictoranyotherentity whatsoever.

21.“Pre-Processed,Baler-ReadyRecyclableMaterials”meansfiber,plastics,aluminumand other RecyclableMaterialssegregatedbytypeandsortedtoremovecontaminantssothatthey are“baler-ready”anddonotrequireanyadditionalsorting.

22.“Pre-Processed,Market-ReadyRecyclableMaterials”meansglass,CoveredElectronic Waste,ElectronicWasteandothermaterialsthatarepre-sorted,readytogodirectlytomarket, anddonotrequire baling.In thecaseofCoveredElectronicWasteandElectronicWaste,the materialistobealreadysorted intothosetwocategories,stackedonpallets,wrappedandready forshipmenttomarkets.

23.“QuarterlyAverageMaterialsRevenueReceived”meanstheaverageofthe revenue receivedbytheCityforaspecificmaterialmarketedfromtheNapaMDFforeachofthethree monthsoftheprecedingquarterasdefinedbelow.ForpurposesofcalculatingtheQuarterly AverageMaterialsRevenueReceived,thefollowingquarterswillbeused:theQuarterly AverageMaterialsRevenueReceivedpricestobeappliedfor theperiodOctober1through December31willbebasedupontherevenuereceivedbytheCityforeachmaterialtypeduring theperiodMay21throughAugust20.TheQuarterlyAverageMaterialsRevenueReceived pricestobeappliedfortheperiodJanuary1throughMarch31willbebasedupontherevenue receivedbytheCityfor eachmaterialtype duringtheperiodAugust21throughNovember20.

TheQuarterlyAverageMaterialsRevenueReceivedpricestobeappliedfortheperiodApril1 throughJune30willbebased upontherevenuereceivedbytheCityforeachmaterialtype Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

duringtheperiodNovember21throughFebruary20.TheQuarterly AverageMaterialsRevenue ReceivedpricestobeappliedfortheperiodJuly1throughSeptember30willbebased uponthe revenuereceivedbytheCityforeachmaterialtypeduringtheperiod February21throughMay

20.TheCitywillcalculatetheQuarterly AverageMaterialsRevenueReceivedforeachquarter bytakingtherevenue receivedeachquarter dividedbythenumberoftonsofthatmaterialsold inthequarter. Asamplecalculationofthe“QuarterlyAverageMaterialsRevenueReceived” appearsinAttachmentFour.

TheQuarterlyAverageMaterialsRevenueReceivedwillreflectonehundredpercent(100%)of therevenuereceivedbytheCityfor saleofeachtypeofmaterial,priortotheseventy percentlthirtypercent(70%/30%)revenuesplitwiththeoperatoroftheNapaMDF.

24.“Recyclable Materials”meansmaterialwhichotherwisewould becomeorbetreatedas MSWbutwhich,bymeansofaprocessofcollecting,sorting,cleaning,treatingand reconstructing,maybe returnedtotheeconomicmainstreamintheformoffinishedorsource materialfornew,reusedorreconstitutedproducts,whichmaybeusedinthemarketplace. “RecyclableMaterials”includespaper,magazines,cardboard,boxes,plastic,metalcans,glass andothersimilarmaterials.Wheneverthecontextrequires,“RecyclableMaterials”includes Yardwaste,CoveredElectronicWaste,ElectronicWasteandDRTSNewMaterials.

25.“SingleStreamRecyclableMaterials”meansthoseRecyclableMaterialscollectedas separatedfromMunicipalSolidWastebytheCustomerandconsistingofamixtureofmetals, glass,plastics#1-7,andallpapergradesfromresidential,commercialandbusiness establishments,andindustrialcustomers. Forpurposesofthisagreement“SingleStream RecyclableMaterialsalsoincludesRecyclableMaterialscollectedinanycommunityor jurisdictiononaregularbasisbyanyentitypursuanttoacontractwithapublicagency,orbya publicagency,aspartofaratepayerfundedresidential,commercialorindustrial(rolloff) recyclingprogram. Thisincludesmaterialscollectedaspartofaresidentialcurbsideor backyard recycling program,acommercialprogramandanindustrial(rolloff)program.Suchmaterials maybecollectedascommingled,dualstreamorinthecaseofaresidentialcurbside,sideyardor backyardrecyclingprogram, maybesourceseparated.

26.“Yardwaste”means cleanloadsoftreetrimmings,grasscuttings,leaves,branchesand similarorganicmaterialsincludingvineyardclippingsthatdonot containcontaminantssuchas metal,plastics,glassand thelikethatwouldinterfere withthecompostingprocessor contaminatethefinalcompostproduct.

Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

ATTACHMENTTWO

MEMORANDUMOFUNDERSTANDINGBETWEENTHECOUNTYOFNAPAAND

THECITYOFNAPARELATINGTOTHENAPAMATERIALSDIVERSION

FACILITY
Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

1q3ô
RrCfl!?Vflr,rF4Ft.rri’’r
_____________
CityAgreement

MEMORANDUMOFUNDERSTANDING
BETWEENTHECOUNTYOFNAPAANDTHECITY OFNPetAccount

RELATING TOTHENAPAMATERIALSDIVERSIONFACIFTY
THISMEMORANDUMOFUNDERSTANDiNG(“MOU”)ismadeasofMay3,2005, byandbetweentheCOUNTYOFNAPA,a politicalsubdivisionoftheStateofCalifornia (“County”)andtheCITYOFNAPA,achartercity(“City”).

RECITALS
A.TheCityhasrecentlypurchased amaterialsdiversionfacility(“Facility”)located at820LevitanWay,Napa.TheFacilityisoperatedbyUSAWasteofCalifornia,Inc.(“USA Waste”)pursuanttoanInterimOperatingLeasewhich will expireonSeptember30,2005.

B.RecyclableMaterialsandYardwastewhichoriginateinthe City andinportionsof the County,aswellasfromwithinotherjurisdictions,aredeliveredto theFacilityforprocessing andcomposting.

C.TheresidueofmaterialsdeliveredtotheFacility thatcanneitherberecyclednor compostedisdeliveredtoaTransferStation,whichislocatedadjacenttothe Facilityandis operatedbytheNapa-VallejoWasteManagementAuthority,ajointpowers agency whose members includetheCountyand theCity.

D.ThecontractsbetweentheCityandNapaGarbageService(“NGS”),adivisionof USAWasteofCalifornia,Inc.(“USA Waste”),andbetweentheCountyandNapaValley DisposalService(“NVDS”), alsoadivisionofUSAWaste,eachexpireon September30,2005, concurrentlywiththe expirationoftheInterimOperatingLeaseoftheFacility.

E.TheCountysolicitedproposalstoprovidecollectionofmunicipalsolidwaste, RecyclableMaterials,andYardwastewithintheportionofitsjurisdictioncalledZone1 commencingOctober1,2005.

F.TheCitysolicitedproposalstoprovide collectionofmuniàipal solidwaste, RecyclableMaterialsandYardwastewithinthe Cityand tooperatetheFacility commencing October1,2005.

MemorandumofUnderstanding
Page1ofl6
7 1088198.9
Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

G.TheCityhasawardedacontractfortheseservicestoNapaRecyclingandWaste Services,LLC,andtheCountyhas awardedacontractfortheseservicestoNapaCounty RecyclingandWasteServices,LLC,twoaffiliatedcompanieswith commonownership.

H.TheCountyhasdeterminedthatitwillbeinthebestinterestsofresidentsand businessesinZone1forcertainRecyclableMaterialsandYardwastecollectedwithinthatZone byNapaCountyRecyclingandWasteServices,LLCandbyCountyemployeestobedelivered totheFacilityforprocessingand composting.The Cityhasdeterminedthatitisinitsbest interesttoacceptsuchmaterialsat theFacilityonthetermscontainedinthisAgreement.

THEPARTIESAGREEASFOLLOWS:

I.COOPERATIVEPROVISIONSAPPLICABLETOPHASEONE(BEFORETHE

CITYBEGINSOPERATINGTHEFACILITY)
Thepartiesrecognizethattherewillbeatransitionperiodduringwhichtheequipment currentlyinuseattheFacilitywillberemovedandnew equipmentinstalled,testedandplaced intoservicebyNapaRecyclingandWasteServices,LLC,onbehalfoftheCity.TheInterim OperatingLeasebetweentheCityandUSAWastecontemplatesthatthistransitionperiodwill endonor aboutSeptember30,2005,andthatduring thisperiodCleanMRFRecyclable MaterialsdeliveredtotheFacilitywillbeaccepted,butthentransferredbytheCity’sContractor toanotherfacilityfor processing.Thepartiesrecognizethatthetransitionperiodmay extend beyond September30,2005.TheCityandCountywillworkcloselyduringthistransitionperiod tofacilitatetheinstallationofnewprocessingequipmentand willcooperatewiththeCityandits Contractor’srequestsanddirectionsrelatingtovehicleaccess,parkingandmaterialsdelivery.

II.COOPERATIVEPROVISIONSAPPLICABLETOPHASETWO(AFTERTHE

CITYBEGINSOPERATINGTHEFACILITY)

1.TheCitywillarrangefortheCountytohavepriority(secondonlytotheCity’s) totheprocessingcapacityoftheFacilityforCleanMRFRecyclableMaterialsandYardwaste.

TheCitywillrequiretheFacilityoperatortorefusetoaccept CleanMRFRecyclableMaterials andYardwastedeliveredbyanythirdpartyifatanytimetheoperatorbecomesunableto accommodateallmaterialsofthesetypes deliveredby oronbehalfoftheCountyandCity.

MemorandumofUnderstanding
Page2of16
7 1088198.9
Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

2.TheCountywilldirectNapaCountyRecyclingandWasteServices,LLCto delivertotheFacility:

A.AllCleanMRFRecyclableMaterialscollectedintheareasoftheCounty thatareshownonAttachment1(i.e.,Zone1)(1)fromresidentialcustomers,and(2)from commercial/businesscustomersincontainerswhosecapacityissixcubic yards orless.

B.AllYardwastecollectedintheareasoftheCountythatareshownon Attachment1(i.e.,Zone1)(1)fromresidentialcustomers,and(2)fromcommerciallbusiness customersincontainerswhosecapacityissixcubicyardsorless.

3.IftheCountycollectsCleanMRFRecyclableMaterialsorYardwastewithin Zone1throughitsownforces,itwilldeliverallsuchmaterialstotheFacility.TheCountywill continuediversion programs(e.g.,curbsidecollectionofCleanMRFRecyclableMaterialsand Yardwaste)asprovidedintheagreementbetweentheCountyandNapaCountyRecyclingand WasteServices,LLC,datedasofMay3,2005,Section3.2.

4.CleanMRFRecyclableMaterialsandYardwastecollectedbyNapaCounty RecyclingandWasteServices,LLCinZone1in containerswhosecapacityisgreaterthansix cubicyardsmaybe,butisnot requiredtobe,deliveredtotheFacilityunderthis agreement.

5.TheCountymaydirectitscontractortodeliver othermaterials(e.g.,bulkygoods, tires,electronicwaste,woodandconcrete)collectedinZone1tothe Facility,butneednotdoso.

IftheCityacceptstheseother materialsfromthirdpartiesitwillalsoacceptthemfromthe County.

6.IftheCityimplementsFoodWastecomposting,theCountymaydirectFood Wastetothe Facility,butisnotobligatedtodoso.

7.TheCitywillrequiretheoperatoroftheFacilitytodeliveranyresidue(i.e., materialswhichcannotberecycledorsuccessfullycomposted)totheTransferStationfor disposal.“Residue”doesnot includematerialsdeliveredtolandfillsforuseas“Alternative DailyCover”orwoodchipsdeliveredtoTransformationfacilitiesforfuel,whetherornot the operatorreceivespaymentforsuchmaterials.

MemorandumofUnderstanding
Page3of16
7 108819&9
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Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

8.A.TheCitywill charge(orcredit)theCounty,andtheCountywillpay(or accept)exclusivelyfromrevenuesgeneratedfromratepayersintheUnincorporatedAreaofZone 1commencingOctober1,2005,thefollowingamountsforYardwasteandClean MRF RecyclableMaterialsdeliveredtotheFacilitybyorfortheCountyfromZone1.

PeriodChargeforCreditfor
(calendaryear)YardwasteCleanMRF
($/ton)Recyclable
Materials
($/ton)
2005(10/1-12/31)25.00(35.00)
200625.00(35.00)
200726.00(34.00)
B.CommencingJanuary1,2008,theCitymay,after60daysnotice to County,changethe ratesforYardwasteandlorCleanMRFRecyclableMaterials.

C.ThechargeforYardwasteissubjecttoincreaseatanytimeifthe processingmethodattheFacilityismodifiedinordertocomplywithregulatoryrequirementsor environmentalconditions,e.g.,ifaeratedstaticpile(ASP)compostingisimplementedtocontrol odors.ThechargewillbeincreasedbythesameamountperTonthattheCityisrequiredtopay theFacilityoperatorforprocessingCity-deliveredYardwaste.

D.NapaCountyRecyclingandWasteServices,LLCwillbechargedno morethanthepostedGateFeeforothermaterials(e.g.,bulkygoods,tires, electronicwaste, wood,concrete)collectedinZone1whichitelectstodelivertotheFacility.

E.IftheCityimplementsFoodWastecompostingandtheCountywishesto arrangeforFoodWastetobedeliveredtotheFacility,thepartieswillmeetandconferto establishtheamountperTonthattheCountywillpay.

F.Theamountssetforthinthissection11.8arepredicatedonNapaCounty RecyclingandWaste Services,LLCservingasthecollectioncontractorfortheCounty’sZone1 andNapaRecyclingandWasteServices,LLCservingasFacilityoperatorundercontractwith theCity.Ifeitherpartychangesitscontractor(other thantoanaffiliatedsuccessorwith substantiallyidenticalownership),thepartieswillmeetandconfertoestablishnewchargesand credits.Ifthepartiescannotreachagreementwithin90days,eitherpartymayterminatethis MemorandumofUnderstanding
Page4of16
7 108819S.9
Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

AgreementandtheCountymaythereafterdirectbothCleanMRFRecyclableMaterialsand Yardwastetoadifferentfacility.

9.TheCitywillbilltheCountymonthly,inarrears.TheCitywillissueasingle invoiceforallCleanMRFRecyclableMaterialsandYardwastedeliveredbytheCounty’s collectioncontractor,allCleanMRFRecyclableMaterialsandYardwastedeliveredbyCounty employeesandallothermaterialdeliveredbyCountyemployees.Theinvoicewillshow subtotalsbyprincipalmaterialtype(CleanMRFRecyclableMaterialsandYardwaste)andfor eachothertypeofmaterialforwhichadifferentchargeispayable.Theinvoicewillshowa creditforCleanMRFRecyclableMaterialsandachargeforallothermaterials,includinga separatelyidentifiedsurchargeforcontaminatedloads.TheCity’sinvoicewillalsoindicatethe numberandvalueofCountycouponsissuedtoresidentsofandbusinesseslocatedinCounty Zone1andcollectedbytheCity’scontractor.TheCountymustpaythe Cityforsuchcollected couponsatfacevalue.TheinvoicewillindicatetheportionofmaterialsdeliveredbytheCounty throughitsownforces.Theinvoicetotalwillbea netfigure.Concurrently,theCitywillsenda copyofeachmonthlyinvoicetoNapaCountyRecyclingandWasteServices,LLC.

Invoicesaredueandpayablewithinforty-five(45)daysafterissuance.Delinquent paymentswillbearinterestattenpercent(10%)peryear,or themaximumlegallyallowablerate iflower.IftheCountyisdelinquentinpayingtwoconsecutivemonthlyinvoices,theCitymay requiretheCountytoeitherorboth(1)postadepositequaltothetotalpaymentdueforthe previousthree(3)monthsor(2)payanestimatedamounteachmonth,inadvance.TheCitywill notoweinterestonanydepositrequiredintheeventofdelinquentpaymentsunlessrequiredby law.IftheCountyfailstopayaninvoiceformorethansixty(60)daysafteritisdue,theCity mayterminatethisAgreement.Invoiceswillbesentto:

AuditManager
NapaCountyAuditor-Controller’sOffice
1195ThirdStreet,RoomB-b
Napa,CA94559

10.TheCitywillnotenterintoacontractwithanythirdpartyallowingittodeliver CleanMRFRecyclableMaterialsandYardwasteontermsthataremorefavorablethanthose extendedtotheCountyinSectionII.8.A,takentogether.

MemorandumofUnderstanding
Page5of16
7 1088198.9
Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

11.ResidentsofandbusinesseslocatedinCountyZone1willbechargedtheposted GateFeesestablishedbytheCityformaterialswhichtheyself-haultotheFacility.TheCity will acceptcouponsthattheCounty’sContractorissuestoresidentsandbusinessesinZoneitobe appliedtowardgatefees.TheCitywillhonorsuchcouponsatfacevalue.

III.TERM

1.ThetermofthisMOUbeginsonOctober1,2005andendsonNovember30, 2015,unlessearlierterminatedasprovidedbelow.

2.IftheFacilityisdestroyedorsubstantiallydamagedbyearthquake,fireorother cause,andifCityelectsnottorebuildorreconstructit,thisAgreementwillterminatethirty(30) daysafterCitygivesnoticetoCountyofitselection.

3.IftheCity,pursuanttoSectionII.8.B,changesthechargeforYardwaste,and/or thecreditforCleanMRFRecyclableMaterialsafterJanuary1,2008,orifchargesarechanged pursuanttoSectionII.8.C.atanytime,theCountymay,on60daysnoticetoCity,terminatethis MOUanddirectbothYardwasteandCleanMRFRecyclableMaterialstoadifferentfacility whichoffersmorefavorabletermstothe CountyiftheCitydoesnotelecttomatchthetermsof theofferfromtheotherfacility.Anysuchoffermustbeinwritingandbindingontheownerand operatoroftheotherfacilityandacompletecopymustbeprovidedtoCityatthesametimethe CountyprovidesnoticeofitsintenttoterminatethisMOU.

IV.OTHERAGREEMENTS

1.TheCityoritsrepresentativewillissuecontaminationviolationnoticestothe County’scollectioncontractor(NapaCountyRecyclingandWasteServices,LLC)andtothe CountyforanyloadsofCleanMRFRecyclableMaterialsorofYardwastedeliveredtothe Facilitywhichcontainmorethantenpercent(10%)byweightofmaterialsconstituting Contamination.Foranysuchload,theCitymay:1)directNapaRecycling&WasteServicesto processthecontaminatedloadandchargetheCountya‘contaminatedloadsurcharge”forthe load,whichshallbecalculatedbasedonthe$/toncontaminatedloadsurchargeratepostedatthe scalehousemultipliedbythetotalnumberoftonsintheload;or2)requirethatthecontaminated loadbereloadedbyNapaRecycling&WasteServicesattheexpenseofthevehicleoperators MemorandumofUnderstanding
Page6of16
7 1088198.9
Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

andremoveloadfromtheMDF,andchargetheCountyastandard‘reloadfee”whichshallbe theratepostedatthescalehouse.TheCitywillprovidenotificationofcontaminatedloadstothe Countyonamonthlybasis.Notificationswillbesentto:

CountyExecutiveOffice
1195ThirdStreet
Room310
Napa,CA94559
Inaddition,theCountywillcomply,andrequireNapaCountyRecycling&Waste Services,LLCtocomply,withallhazardouswasteexclusionprogramregulationsadoptedbythe City.

2.AttherequestoftheCounty,the Citywillmeetuptoonetimeper calendaryear todiscussthelistofmaterialsacceptedattheFacilityunderthecategoriesofCleanMRF RecyclableMaterialsandYardwaste.Changesto thelistofmaterialsmaybesuggestedbythe Countyatthemeeting,butmustbeapprovedinwritingbytheCitypriortoacceptanceofthe materialtypesattheFacility.

3.TheCitywillhavethesole andexclusiverighttoestablishandcollectGateFees forallmaterialsdeliveredtotheFacilitybythirdpartieswithoutcontracts,includingbutnot limitedtootherlocalgovernmentagencies,collectioncompaniesengagedbysuchgovernment agencies,independentlandscapers,roofersandcontractors,andmembersofthepublic.

4.IftheCityelectstoacceptSpecialRecyclingWasteattheFacility,residentsof andbusinesseslocatedinZone1oftheCountymaydeliversuchwasteuponpaymentofthe postedGateFees,providedthatthe CityispermittedtoacceptSpecialRecyclingWastefrom outsidetheCity.TheCityhasnoobligationunderthisMOUtoacceptwasteofthistypeand,if itbeginstoacceptit,theCitymayterminateitsacceptanceat anytime.IftheCityelectsto discontinueacceptinganySpecialRecyclingWaste,Citymay,on60daysnoticetotheCounty, terminatethisservice.

MemorandumofUnderstanding
Page7of16
7 I08s198.9
Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

5.TheCitywillarrangeforreportstobepreparedon Tonsdeliveredtothe Facility fromorbytheCountyandTonsdivertedfromlandfill disposalthataresimilarincontentand formattothe reportsthattheCitywill prepareforitsownuse indocumentingcompliancewith theAct.SuchreportswillbedeliveredtotheCountyat thesametimeandfrequencyasthe City’sreportsareproduced.TheCitywillprovidetheCountyamonthlyreportofinbound materialdeliveredbytheCountyinaccordancewithSectionIIherein.

V.MISCELLANEOUS AGREEMENTS

1.Capitalizedtermsinthis MOUshallhavethemeaningsassignedtothemin AttachmentTwo,unlessthecontextindicatesotherwise.

2.ThisMOUmaybeamendedonlyinawritingapprovedandexecutedbyboth parties.

3.The CountymaynotassignanyofitsrightsunderthisMOU,nordelegateany dutiesorthoseofitscontractorarisingunderthis MOU,withoutthepriorwrittenconsentofthe City.

4.WithoutwaivingtheprovisionsofSectionV.3,alloftherightsanddutiesofthe partiesshallinuretothebenefitof,andbebindingupon,their respectivesuccessorsandassigns.

5.AllnoticesgivenunderthisMOUshallbeinwriting.Noticesshallbesent:

IftotheCity:CityofNapa
955SchoolStreet
Napa,CA94559
Attention:CityFinanceDirector
Facsimile:(707)257-9251
Ifto theCounty:CountyofNapa
1195ThirdStreet,Room310
Napa,CA94559
Attention:CountyExecutiveOfficer
Facsimile:(707)253-4176
Noticeshallbesufficientlygivenwhen(a)personallydeliveredtotherecipient, (b)mailedfirstclasspostageprepaid,(c)deliveredbyovernightdeliveryservicewithcharges prepaid,or(d)sentbyfacsimiletothe lastfacsimilenumberoftherecipientsolongasa MemorandumofUnderstanding
Page8of16
1088198.9
Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

duplicate
copy
of
the
notice
is
promptly
given
by
first
class
mail
or
the
receiving
party
delivers
a
written
confirmation
receipt.

Either
party
may
change
the
address
to
which
notices
to
itare
to
be
sent
by
means
of
anotice
delivered
to
the
other
party
as
provided
above.

6. Nothing
in
this
MOU,
express
or
implied,
is
intended
to
confer
upon
any
person,
other
than
the
parties
and
their
respective
successors
and
assigns,
any
rights
or
remedies.

7. If,
and
for
as
long
as,
performance
by
aparty
is
made
impossible
by
acts
of
God,
casualty,
State
or
federal
government
action,
civil
commotion,
acts
of
terrorism
or
other
causes
not
the
fault
of
and
beyond
the
reasonable
control
of
the
party
obligated
to
perform,
performance
by
that
party
is
excused.

This
section
does
not
excuse
afailure
to
pay
money
when
due.

8. Time
is
of
the
essence
of
this
MOU
and
each
of
its
provisions

9. If
any
term
or
provision
of
this
MOIJ
is
held
invalid
or
unenforceable,
the
remainder
of
this
MOU
shall
not
be
affected.

10. No
waiver
of
abreach
of
any
provision
shall
be
deemed
awaiver
of
any
other
breach,
and
no
waiver
shall
be
valid
unless
itis
in
writing
and
executed
by
the
waiving
party.

No
extension
of
time
for
performance
of
any
obligation
or
act
shall
be
deemed
an
extension
of
time
for
any
other
obligation
or
act.

11. This
MOU
may
be
executed
in
one
or
more
counterparts,
each
of
which
shall
be
deemed
an
original
and
all
of
which
taken
together
shall
constitute
one
and
the
same
instrument.

The
execution
of
the
MOU
shall
be
deemed
to
have
occurred,
and
this
MOU
shall
be
enforceable
and
effective,
only
upon
the
complete
execution
of
this
MOU
by
County
and
City.

12. If
any
legal
action
or
other
proceeding,
including
arbitration
or
an
action
for
declaratory
relief,
is
brought
to
enforce
this
MOU
or
because
of
adispute,
breach,
or
default
in
connection
with this
MOU,
the
prevailing
party
shall
be
entitled
to
recover
reasonable
attorney
fees
and
other
costs,
in
addition
to
any
other
proper
relief.
“Prevailing
party”
includes
(a)
aparty
who
dismisses
an
action
in
exchange
for
sums
allegedly
due;
(b)
the
party
that
receives
performance
from
the
other
party
of
an
alleged
breach
or
adesired
remedy,
if
itis
substantially
equal
to
the
relief
sought
in
an
action;
or
(c)
the
party
determined
to
be
prevailing
by
acourt
of
law.

MemorandumofUnderstanding
Page9of16
1088198.9
Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

13.ThetitleandheadingsofthesectionsofthisMOUareintendedsolelyfor referenceanddonotmodify,explain,orconstrueanyprovisionofthisMOU.Allreferencesto sectionsandrecitalsrefertothesectionsandrecitalsofthisMOU.InconstruingthisMOU,the singularformshallincludethepluralandviceversa.ThisMOUshallnotbeconstruedasifit hadbeenpreparedbyoneoftheparties,butratherasifbothpartieshavepreparedtheMOUwith theassistanceofindependentlegalcounselforeach.

14.ThisMOUconstitutestheentireagreementbetweentheparties.Therearenooral agreementswhicharenotexpresslysetforthin thisMOU.

15.AllpersonsexecutingthisMOUonbehalfofapartywarrantthattheyhavethe authoritytoexecutethisMOUonbehalfofthatparty.

16.TheattachmentstothisMOUareapartofthisMOUandareincorporatedintoit bythisreference.

17.ThisMOUshallbegovernedby,andconstruedandenforcedinaccordancewith, thelawsofCalifornia.

INWITNESSWHEREOF,thepartieshaveexecutedthisMemorandumof Understandingasofthedayandyearfirstabovewritten.

I/I
MemorandumofUnderstanding
Page10of16
7 1088198.9
Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

COUNTY OFNAPA
BjLCJALQ±4
Name:DianeDillon
Title:Chair,BoardofSupervisors
Date:

CITYOFNAPA:

IJLID_Q
(Signature)
JILLTECHEL,Mayor
(T)penameandtitle)
ATTEST:PAMELAMILLER,ATTEST:
lerkoftheBoardofSupervisors
By:,.(MfJltt’/1d//dt_’(Signature)
APPROVED22aqJ.2c
BOARDOFSUP’RVISORS
COUN1YOFNAPA
PAMELAA.MILLER

ERI(OFTHEBOARD
BYrøniihi
JEDCHRISTENSEN.FinanceDirector
(Tgnenameandtitle)
APPROVEDAS TOFORM:

ROBERT WESTMEYER
NapaCountyCounsel
By:e-signatureby RobertPaul
BudgetCode:________
MemorandumofUnderstanding
Page11of16
2005
PAMYLA MEANS.CityClerk
(T)penameandtitle)
COUNTERSIGNED:
4’-r
—
(Signature)U
(Tjpenameandtitle)
CityAttorney
7 1088198.9
Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

LISTOFATTACHMENTS
AttachmentOne
MapofZoneOneServiceArea
AttachmentTwo
Definitions
AttachmentThree
CleanMRFRecyclableMaterials
MemorandumofUnderstanding
Page12of16
7 10881989
Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

r-’ichmentA
Leind
•‘GaIbgGZns
LZlzore3
—J•
w-
Aoabriciir
I
_
HIii
YcnlI.

COIn?Mk1
-‘.•--,.——e.W7L
ip
ArFAcIIMENTONE

MAPOFZONE()NFSETWTCEARKA
I-
-I
MenaIlCIIr11_ndi1dnd1lg
Pn13jf16
Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

ATTACHMENT TWO

DEFINITIONS
“CleanMRFRecyclableMaterials”meansthosematerialswhicharetobeprocessedat theCleanMRFareasoftheFacility,whicharelistedinAttachmentThree..CleanMRF RecyclableMaterialsincludebothSingleStreamRecyclablesandSource Separated materialslistedinAttachmentThree.
“Contamination”meansmaterialswhicharenotspecifiedinthedefinitionfor Yardwaste orlistedasacceptableonAttachment ThreeforCleanMRFRecyclableMaterials.For example,plasticswouldconstituteContaminationifdeliveredtotheFacilityinaloadof Yardwasteandtreetrimmings would constituteContaminationifdeliveredtotheFacility inaloadofCleanMRFRecyclable Materials.
“FoodWaste”meanssurplus,spoiledorunsoldfood,suchasvegetablesandculls,as wellasplate scrapings.
“SingleStreamRecyclables”meansmaterialscollectedafterhavingbeenseparatedfrom municipalsolidwaste(e.g.,garbageorrefuse)byaresidentialorcommercial/business customer,consistingofamixtureofsomeorallofthematerialslistedinAttachment Three.
“SpecialRecyclingWaste”meanselectronicwaste(includingcathoderaytubes, computers,televisions,cellphones,stereos,copiers,faxmachinesandperipherals),tires andbulkygoods (includingfurniture,householdorindustrial appliances,shippingcrates andcontainers,otherlarge,andbulkyorheavyobjectsnotnormallydiscardedona regularbasisatresidential,commercialorbusinessestablishments).Itemslistedmaybe changedasagreeduponbytheCityFinanceDirectorandtheCountyExecutiveOfficer. “SourceSeparated” meansmaterialscollectedafterhavingbeenseparatedfrom municipalsolidwaste(e.g.,garbageorrefuse)byaresidentialorcommercial/business customer, consistingprimarilyofasinglematerial.

MemorandumofUnderstanding
Page14of16
1088198.9
Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

“Yardwaste”means treetrimmings,grasscuttings,leaves,branchesandsimilar organic materials, includingvineyardclippings, weeds,treeprunings,bushprurnngs,plant material,andtreetrunks/stumps/branches6”orlessindiameter.Itexcludes,for example,rocks,dirt,plasticbags,municipalsolidwaste,Single-StreamRecyclables,pet waste,HazardousWaste,andtreetrunks/stumps/branchesgreaterthan6”indiameter.

MemorandumofUnderstanding
Page15of16
1088198.9
Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

ATTACHMENTTHREE

CLEANMRFRECYCLAELEMATERIALS
AcceptableMaterialsExamplesofUnacceptable
Materials(Contamination)
NewspaperPapertissues
PhonebooksPapertowels
CatalogsPaperwithplasticcoating(i.e.,photographs,
Magazineslabelpaper)
Brownpaper bagsPaperwithfood
PackagingWaxpaper
EggcartonsFoillinedpaper
WhitepaperTyvex(non-tearing)envelopes
ColoredpaperNon-paperbags
Envelopes(windowsarenotcontamination)Plasticliners(i.e.,cerealbags) JunkmailWindows
GlossypaperMirrors
ShreddedpaperDishware
CarbonlesspaperCeramics
Chipboard/boxboardLightbulbs
CardboardFlorescenttubes
WrappingpaperToys
EmptyaluminumcansIrrigationpipe
EmptytincansFurniture
JuicecontainersStyrofoam
BeercontainersMSW
SaucecontainersHazardousWaste
SodacansHardcoverbooks/manuals
TunacansPyrexmaterials
SoupcansFiberglassmaterials
Loosejarlids
Emptyaerosol
Emptyglassbeveragecontainers
Emptyglassfoodcontainers
Allglasscolors
EmptyCRVplasticcontainersandbottles#1
through#7
Softcoverbooks/manuals
Milkljuicecartons
_________________________________
MemorandumofUnderstanding
Page16of16
1088198.9
Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

ATTACHMENTTHREE

PRODUCERPRICEINDEXCALCULATIONTOADJUSTYARDWASTEPRICE
TheYardwastegatefeeforcalendaryear2009istwenty-sevendollars($27.00)perton.The Yardwastegatefeefor2010willbeadjustedasofJanuary1,2010bythechangeintheannual averageoftheProducerPriceIndex(PPI)-FinishedGoodsLessFoodandEnergy(SeriesID WPUSOD3500)forcalendaryear2008andtheannual averageforcalendar year2009.The Yardwastegatefeewillbeadjustedannuallythereafterusingthesameprocedure.

Ifthe finalversionoftheabove-describedindexisnotpubliclyavailablepriortothefirstCity billingofthecalendaryear,theCity willapplytheadditionaladjustmentretroactivelytoall inboundYardwastetonnagereceivedfromthebeginningofthecalendaryear.Forexample,if theappropriateannualaveragePPIfor2009isnotpubliclyavailableuntilMarch1,2010,the Citywillinvoice forthegatefeeadjustmentsforYardwasteloadsdeliveredbyNorthernin JanuaryandFebruary2010,inMarch2010.

ThepercentagechangeinthelevelofthestatedPPI betweenthereferenceperiodanda subsequenttimeperiodiscalculated byfirstdeterminingtheindex point changebetweenthetwo periodsandthen thepercentagechange.Thefollowingexampleillustratesthecomputationof thepercentagechangeandadjustmentoftheYardwastegatefeefor Northern.

AnnualAveragePPI(FinishedGoodslessFoodandEnergy—SeriesIDWPUSOD3500)for currentperiod
116.0
LessAnnualAveragePPIforpreviousperiod
113.3
Equalspercentagepointchange

2.7/
Dividedbyprevious periodPPI
113.3
Equals

0.024
Resultsmultipliedby1000.024x100
Equalspercentagechange=2.4%
Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

Percentagechangemultipliedbycurrentgatefee$27.00
x2.4%
Equalsdollarchange
$0.65
Currentgatefeeplusdollar changeequalsnewgatefee$27.00
+$0.65
Equals newgatefee=$27.65/ton
Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

ATTACHMENT FOUR PART A

SAMPLE CALCULATION OF QUARTERLY AVERAGE RECEIVED REVENUE FROM SALE OF MDF RECYCLABLE MATERIALS Average of Quarterly MDF Received Revenue by Material Type for Previous Quarter (e.g., November 21, 2008 through February 20, 2009):,
Material/Commodity Gross Received Revenue Buyer Paid Tons Average Received Payment Payment (per Ton) to in Previous Quarter in Previous Received Revenue Percentage Northern for Current Quarter per Ton in Previous per Material Quarter (Jan — Mar 08)
Cardboard $200,160.00 divided by 1251 tons = $160.00 per ton X 61 percent = $97.60 per ton Mixed Paper $38,906.25 divided by 375 tons = $103.75 per ton X 61 percent = $63.29 per ton PET Plastic Bottles (CRV) $385,721.70 divided by 195 tons = $1,978.06 per ton X 69 percent = $1,364.86 per ton Mixed #1-7 Rigid!
Non-CRV Plastics $90,000.00 divided by 750 tons = $120.00 per ton X 61 percent = $73.20 per ton Aluminum Cans (CRy) $301,278.60 divided by 63 tons $4,782.20 per ton X 69 percent = $3,299.72 per ton Mixed Glass
Containers (CRV) $2,576.49 divided by 21 tons = $122.69 per ton X 69 percent = $84.66 per ton Clear Glass
Containers (CRV) $8,851.05 divided by 45 tons = $1%.69 per ton X 69 percent = $135.72 per ton Clear Film Plastic $37,620.00 divided by 195 tons = $192.92 per ton X 61 percent = $117.68 per ton Colored Film Plastic $3,000.00 divided by 75 tons = $40.00 per ton X 61 percent = $24.40 per ton Covered Electronic
Waste (CEW) $10,800.00 divided by 27 tons = $400.00 per ton X 69 percent = $276.00 per ton Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

PET Film Plastic Rolls $9,300.00 divided by 31 tons $300.00 per ton 69 percent = $207.00 per ton Computer Hard Drives $480.00 divided by 4 tons - $120.00 per ton X 69 percent = $82.80 per ton Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

ATTACHMENTFOURPARTB

SAMPLECALCULATIONOFMONTHLYAVERAGEMATERIALSREVENUEEXPECTED Assumptions:

A.TheQuarterlyAverageMaterialsRevenueReceivedforQuarter#1forcardboardis $100/ton.

B.Thefollowingpurchaseordersandbookingshavebeenmadeforsaleofcardboard fromtheNapaMDFduringthemonthofMay:

Booking#1:60tonsofcardboardbeingsoldat$100perton(netofallestimatedfreight, shipping,handling,brokerage,demurrageandothercharges).

Booking#2:100tonsofcardboardbeingsoldat$160perton(netofallestimatedfreight, shipping,handling,brokerage,demurrageandothercharges).

PurchaseOrder:30tonsofcardboardbeingsoldat$180perton(netofallestimatedfreight, shipping,handling,brokerage,demurrageandothercharges).

C.ThepriceinBooking#2($160/ton)iscomparedtotheQuarterlyAverageMaterialsRevenue ReceivedforQuarter#1($100/ton).Thepricehasincreasedbyover20%.

CalculationofMonthlyAverageMaterialsRevenueExpectedforCardboardforMay:

Step#1.CalculateTotalExpectedRevenueFromCardboard
60x$100=$6,000
lOOx$160=$16,000
30x$180=$5,400
Total$27,400
Step#2.CalculateTotalTonsSold
Totaltons sold=60+100+30190tons
ATTACHMENTFOURPARTB(continued)
Step#3.CalculateMonthlyAverageMaterialsRevenueExpectedPerTonFortheMonth ofMayforCardboard
$27,400/190tons=$144.21/ton
Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

Step#4.TheMonthlyAverageMaterialsRevenueExpectedPerTonof$144.21/tonfor cardboardisusedinthecalculationinSection3forpaymenttoNorthernforcardboardinsteadof theQuarterlyAverageMaterialsRevenueReceived.

Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

ATTACHMENTFIVE

NAPAMDFOPERATINGREGULATIONS
(UpdatedMay24,2010)

1.MDFHoursofOperationsandAccessPolicies
a)ForgeneralpublicusersoftheMDF,thedailyhoursarefrom8:00a.m.to4:00p.m. b)TheMDFisclosed fourdayseachcalendaryear(New Year’sDay,EasterSunday, ThanksgivingDayandChristmasDay).
c)TheMDFwillcloseat3:00p.m.onmajorholidaysincludingMartin LutherKingJr.

Birthday,Presidents’ Day,MemorialDay,ofJuly,LaborDay,Dayafter ThanksgivingandatnoononChristmasEve.Publicnoticeswillbepostedandsentout tojurisdictionalusers.
d)Forcommercialcompostandotheroutboundorganics(e.g.,woodchips,yardwasteovers, etc.),theMDFmayaccept vehiclesfrom8:00a.m.until4:00p.m. Thisrestriction parallelsthecurrentpermit requirementsandoperational considerationsforthe compostingandwoodprocessingareas.
e)Forcommercialusers(NRWS/NCRWS&jurisdictionalcustomers)oftheclean Materials RecoveryFacility(MRF)and sourceseparatedconstructionanddemolition materials(C&D),theMDFcanacceptvehiclesforoffloadingfrom6:15a.m.through 4:00.p.m.
f)ForcommercialusersoftheMRFandC&DareasattheMDFthatintendtobeloaded withoutboundmaterials,the MDFwillaccept vehiclesbetweenthehoursof6:15a.m. and4:00p.m.

2.GatehouseandWeihscalePolicies
a)Allinboundloadsforprocessing mustbe weighed(includingloadsfortransferonly). b)Withtheexceptionofcompostpurchasedbyself-haulusers,alloutboundloadsmustalso beweighed.
c)AllvehiclesmustcheckinwithscalehouseattendantwhenenteringorleavingMDF.

Theonly exceptiontothisruleisinboundNRWS/NCRWSorjurisdictionalusers that haveanapprovedtareweightloadedintothescalehousetrackingsoftware—these inboundusersmay checkpriortooff-loadingandarenot requiredtogooverthescales againafteroffloading.
d)Withtheexceptionsnotedinitembandcabove,allvehicles(bothinboundandoutbound users)mustcheckinwithscalehouseattendanttoestablishanemptytareweightand loadedgrossweights.NOVEHICLEWILLBEALLOWEDTO LEAVETHEMDF WITHAGROSSWEIGHTEXCEEDING80,000LBS.
e)Outboundloadscontainingmorethanonetypeofmaterial musthave eachmaterial weighedseparately(i.e.,vehicle mustweighafterloading eachtypeofmaterial). 1)OutbounddisposalresiduefromMDFmustbeseparatelyweighedbyprocessingarea.

3.MDFTrafficFlow&LoadCheckProvisions
Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

a)MDFspottersmustbeavailabletodirectcustomerswheretodepositloads,andwhereto pickupmaterials.SpottersmustbeabletospeakEnglish.
b)Spottersaretoobserveloadsofmaterialsastheyaredischargedfromvehiclesateach processingareaforhazardousmaterialsandcontaminationthat exceedslimits c)Asageneralrule,customers shouldbedirectedtotake theoldestcompostmaterialfirst.

4.Safety&MaterialStora2eProvisions
a)Exceptforpersonneloperatingorfeedingtheshredder,noperson(employee,customer, orCity personnel)isallowedwithin30ftoftheshredderwhenitisoperating. b)AllusersofMDF willtreat employeesoftheCityandNRWSwithcourtesyandrespect atalltimesandrespondtodirectionfromMDFstaffaccordingly.Anyuserorcustomer thatdoesnotcomplywiththispolicy maybeaskedtoleave theMDFpremises immediatelyandmaybepreventedfromfutureaccessanduseprivilegesattheMDF. c)Cleanliness
a.All areasoftheMDFaretobe sweptdaily.
b.Streetfrontagesaretobecleanedatleasttwiceperweek.
c.Materialsaretobestoredtominimizenuisance,health,andsafetyproblems.

Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

ATTACHMENTSIX

CALCULATIONOFAVERAGEPERTONMARKETVALUEFORDRTSPRE

SORTED MIXEDRECYCLABLEMATERIALS
STEP1:AssumethecharacterizationresultsdescribedinSection3Eareasfollows:
#6Plastics53.5%
#7Plastics19%
TinCans27%
Residue0.5%
AssumetheQuarterlyAverage Materials RevenueReceivedforthesematerialsisasfollows:
#6Plastics$60.98/ton
#7Plastics$71.07/ton
TinCans$52.00/ton
STEP2:CalculatetheAveragePerTonMarketValuebymultiplyingthepercentageof eachmaterialbytheQuarterlyAverageMaterialsRevenueReceivedforthatmaterial. #6Plastics$60.98x0.535=$32.62/ton
#7Plastics$71.07x0.19=$13.50/ton
TinCans$52.OOx.27=$14.04/ton
STEP3:AddtheresultingvaluesforeachmaterialinSTEP#2.
#6Plastics$32.62/ton
#7Plastics$13.50/ton
Tin Cans$14.04/ton
Total$60.16/ton
STEP#4:TheresultistheAveragePerTonMarketValueof$60.16/ton.

Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

ATTACHMENTSEVEN

CALCULATIONOFPAYMENTTOORFROMNORTHERNFORDRTSPRE

SORTEDMIXEDRECYCLABLEMATERIALS
PARTA

CALCULATIONOFPAYMENTTONORTHERN
Follow thestepslistedbelowtocompletethecalculationoftheamountofthepaymentpertonto orfromNorthernforDRTSPre-SortedMixedRecyclableMaterials.Twosamplecalculations followthelistofstepsforcompletingthecalculation.Thefirstsampleshowsacalculation resultinginpaymenttoNorthernfromtheCityforthematerials.Thesecondsampleshowsa calculationresultinginNorthernowingapaymenttotheCityforprocessingthematerialsdueto the lowerAveragePerTonMarketValueofthemixedmaterials.

STEP1:Completethefollowingbackgroundworktoobtainvalues neededforthe calculation:

A.EstablishtheAveragePerTonMarketValuefor theDRTSPre-SortedMixed RecyclableMaterialsbyperformingthecharacterizationdescribedinSection3E andthecalculationinAttachmentSix.

B.EstablishthepercentofresidueintheDRTSPre-SortedMixedRecyclable MaterialsbyperformingthecharacterizationdescribedinSection3E.

C.ObtainthecurrentpertoncosttotheCityfordisposalofresidueattheDRTS.

D.ObtainthecurrentNRWSprocessingfeefortonsover baseline(asadjustedfor inflation)asdescribedinSection12.05oftheagreementbetweentheCityand NRWS(CityagreementNo.8687)datedDecember7,2004.

STEP2:BeginthecalculationbyreducingtheAveragePerTonMarketValuebythe shrinkageduetoresiduetoestablishthenetperton averagemarketvalue.Subtractthe percentageofresiduefrom100,thenconverttheresulttoapercentage(e.g..99).Multiplythe AveragePerTonMarketValuebythispercentage.

STEP3:CalculatetheCity’s70%shareofthemarketvaluebymultiplyingthenetperton averagemarketvalueby0.7.

STEP4:CalculatethecosttotheCityforresidue disposalbymultiplyingtheperton disposalcostattheDRTStimesthepercentofresidueinthe DRTSPre-SortedMixed RecyclableMaterials.SubtractthecostofresiduedisposalfromtheresultofStep#3.

STEP5:SubtractthecurrentNRWSoverbaselinepertonprocessingfeefromtheresultof Step#4.

Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

STEP6:CalculatetheCity’spayment(theCityreceives9%ofthe netpertonaverage marketvalueofthematerials)bymultiplyingthenetperton averagemarket value(calculatedin Step2)times0.09.SubtracttheresultfromtheresultofStep#5.

STEP7:TheresultofStep#6equalsthepertonpaymenttoNorthernortheperton paymentfromNortherntotheCityforprocessingthematerials.

SAMPLECALCULATION#1
STEP1:Assumethatthefollowingdatawasobtainedforuseinthecalculations:

A.TheAveragePerTonMarketValue forthe DRTSPre-SortedMixed Recyclable Materialsperthecharacterizationis$130perton.

B.Residueequals0.5%perthecharacterization.

C.TheCity’scurrent costofresidue disposalattheDRTSis$56.00perton.

D.Thecurrent NRWSprocessingfeefor tonsoverbaselineis$61perton.

STEP2:100—0.5(0.5%residue)0.9950.995x$130/ton=$129.35/ton STEP3:$129.35/tonx0.7(City’s70%shareofrevenue)=$90.55/ton STEP4:$56/ton(DRTStipfee)x0.005(percentofresiduedisposal)=$0.28/ton $90.55/ton-$0.28/ton=$90.27/ton
STEP5:$90.27/ton-$61.00/ton(NRWSoverbaselineprocessingfee)=$29.27/ton STEP6:$129.35x0.09(City’spaymentequalto9%ofthenetpertonaveragemarket valuefromStep#2)=$11.64/ton
$29.27-$11.64=$17.63/ton
STEP7:PaymenttoNorthern=$17.63/ton
SAMPLECALCULATION#2
STEP1:Assumethatthefollowingdatawasobtainedforuse inthecalculations:

A.TheAveragePerTonMarketValuefortheDRTSPre-Sorted MixedRecyclable Materials perthecharacterizationis$90perton.

B.Residueequals0.5%perthecharacterization.

C.TheCity’scurrentcostofresiduedisposalattheDRTSis$56.00perton.

D.ThecurrentNRWSprocessingfeefortonsoverbaselineis$61perton.

STEP2:100—0.5(0.5%residue)=0.995 0.995x$90/ton=$89.55/ton STEP3:$89.55/tonx0.7(City’s70%shareofrevenue)=$62.69/ton STEP4:$56/ton(DRTStipfee)x0.005(percentofresiduedisposal)=$0.28/ton Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

$62.69/ton-$0.28/ton=$62.41/ton
STEP5:$62.41/ton-$61.00/ton(NRWSoverbaselineprocessingfee)=$1.41/ton STEP6:$89.55x0.09(City’spaymentequalto9%ofthe netperton averagemarket value fromStep#2)=$8.06/ton
$1.41-$8.06=-$6.65/ton(negative$6.65/ton)
STEP7:PaymenttoCity fromNorthern=$6.65/ton
Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

ATTACHMENTSEVEN
PARTB

CHANGEINCALCULATIONIFCITYCEASESTOPAYFORNAPAMDFRESIDUE

DISPOSAL
IntheeventthattheCityceasestopayforthedisposalofresiduefrom theNapaMDFinthe future,theabove-describedcalculationshallbemodifiedbyomittingSTEP#4.Allotherparts ofthecalculationshallremainthesame.

Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

ATTACHMENTEIGHT

REQUIREDFORMATFORWRITTEN INFORMATIONONEACHLOADDELIVEREDTOTHENAPA MDF
NorthernRecycling-DevlinRoadTransferStation
Date:

Truck#:

Driver:
(Circleareaandmaterial)
BuyBackCenter:ALUMCRVAluminumCans
PETCRV#1PETPlasticBottles
HDPENATCRV#2HDPENaturalPlasticBottles
HDPEMIXCRV#2HDPEColoredPlasticBottles
MIXCONTCRV #3-7 Plastic Bottles
METALCRVBimetalCans
GLASSCLCRVClearGlassBottles
GLASSBRCRVBrownGlassBottles
GLASSGRCRVGreenGlassBottles
CARD BALEDCardboard
CARD#12Cárdboard#12
LDPENATBALEDClearFilmPlastic
LDPEMIXBALEDColoredFilmPlastic
OTHER
____________________
OTHER
____________________
Re-useArea:CARDCardboard
CARD#12Cardboard#12
ELECElectronics
MXPLAS MixedRigidPlastics
NEWSNewspaper
PAPERMXMixedPaper
TiNTinCans
OTHER
____________________
OTHER
____________________
C&DSortingArea:CARDCardboard
CARD#12Cardboard#12
PAPERMXMixedPaper
MXPLASMixedRigidPlastics
LDPEMIXMixedPlasticFilm
MXCONTMixed BottlesandCans
GLASSMixedGlassBottles
METALScrapMetal
OTHER
____________________
OTHER
____________________
Pleaseattachyellowandpinkweighttickets
Ifany“Other”handwrittenmaterialsareincludedonthisform,copytheformandforwardittotheCityMaterials DiversionAnalystforreview.

Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

ATTACHMENTNINE

SCHEDULE FORPREPARATIONOFQUARTERLYAVERAGEMATERIALSREVENUE RECEiVEDBYCITYANDINVOICINGBYNORTHERN
ForMaterialsUsetheCityReceivesCity ProvidesNorthern
DeliveredQuarterlyAllPricing DataAverageSubmitsFirst
DuringThisAverageFromMDFMaterialsInvoiceUsing
QuarterMaterialsOperatorforRevenuePricingforthe
RevenuePrior3MonthReceivedPricesNewQuarter
ReceivedPeriodtoNorthernfor
PricingForThistheNew
PeriodQuarter
January1—August21—ByDecember20ByJanuary10ByJanuary15
March31November20
April1—June30November21—ByMarch20ByApril10ByApril15
February20
July1—Sept. 30February21—By June20ByJuly10ByJuly15
May20
October1—May21—AugustBySeptember20ByOctober10ByOctober15 December3120
Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

EXHIBIT2

ATTACHMENTT

COMBINEDOPERATINGANDCAPITALCOSTFORCOLLECTIONANDMATERIALS

DIVERSIONFACILITYOPERATION

2.OPERATINGANDCAPITALCOSTPAYMENT
TableIshowsthecomponentsoftheoperating andcapitalcostpaymenteffectiveJuly1,2007.

Tablela.showsthebreakdownofthechangestotheOperatingandCapitalCostPaymentasa resultoftheNorthernagreement.Costsareshownin2007dollars.Costsshallbeadjustedas describedinArticle12.

TABLE1.BASELINEOPERATINGANDCAPITALCOSTPAYMENT(asof711/07,2007$) ANNUAL

COSTCATEGORIESCOSTTOTALSINDEX

COLLECTION
OperatingExpenses
Labor2,196,410.89CPI
Supplies147,900.58PPI
VehideO&M
Fuel,Oil&OtherFluids451046.70Fuel
VehicleInsurance73,960.67PPI
VehicleRepair&Maintenance786,217.64PPI
Total3,655,536.48
G&AExpenses
CustomerService
CustomerServiceLabor179,050.54CPI
Billing150,737.32PPI
Administration
AdminServices462,908.85CPI
GeneralInsurance442,111.00PPI
OfficeExpenses419,399.48PPI
PublicInformation&Education88,208.72PPI
Total1,742,415.91
Vehicle&EquipmentCapital1,605,320.46Table2
Overhead,Tax231,472.00None
Total1,836,792.46
SubtotalCollectionCosts7,234,744.85

PROCESSING
O&M
Labor1,243,082.95Table4
Operations796,329.38Table4
ContingencyNotApplicableTable4
Total2,039,412.33
Capital
CapitalImprovementsNotApplicableTable3
Equipment542,324.00Table3
OtherStartUpCosts28,333.33Table3
ContingencyNotApplicableTable3
Total570,658.33
SubtotalBaselineProcessingExpenses2,610,070.66
TOTALBASELINEEXPENSES9,844,815.51
OperatingandCapitalCostSummaryincludesthefollowing:

Decreaseincollectionvehicle&equipmentcapitaldueto NVUSDchangeinscope).

Decreaseincollectionvehicle&equipmentcapitalbasedonTable2schedule.

DecreaseinprocessingcapitalequipmentbasedonTable3schedule.

DecreaseincostsduetoimpactofNorthernagreement(seeTableIa).

Cost-of-livingadjustmentseffective10/1/05and2/1/07.

Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

TABLEIa.BREAKDOWN OFAMENDMENT2COSTS
(asof711107,2007$)
ANNUAL

COSTCATEGORIESCOSTTOTALS

COLLECTION
OperatingExpenses
Labor27,912.36
Supplies
Vehicle_O&M
Fuel,Oil&OtherFluids54.38
Vehicle_Insurance
VehicleRepair&Maintenance7.27
Total27,974.01
G&AExpenses
CustomerService
CustomerService_Labor
Billing
Administration
Admin_Services
GeneralInsurance13.50
OfficeExpenses732.03
Public_Information_&_Education
Total745.53
Vehicle&EquipmentCapital419.00
Overhead,Tax
Total419.00
SubtotalCollectionCosts29,138.54
Tablelbshowsthecomponentsofthe operating andcapitalcostpaymenteffective July1, 2010.Costsareshownin2010dollars.CostsshallbeadjustedasdescribedinArticle12.

2.OPERATINGANDCAPITALCOSTPAYMENT(CONTRACTTERM)
ThebaselineexpensestobecompensatedtoContractor over the contracttermare summarizedin2007dollarsinTables2-4,andin2010dollarsinTables2a-4a,providedatthe endofAttachmentT.CostsshallbeadjustedasdescribedinArticle12.

3.SPECIALPROGRAMSCOSTS
Specialprogramsmay beimplementedbyContractorifdirectedbyCity.Theseprograms includefoodwastecollectionandprocessing;interimmixedconstructionanddemolition processing;permanentmixedconstructionanddemolitionprocessing;andaeratedstaticpile composting.

Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

TABLElb.BASELINEOPERATINGANDCAPITALCOSTPAYMENT(asof711110,2010$)

COSTCATEGORIESANNUALCOSTTOTALSINDEX

COLLECTION
OperatingExpenses
Labor2,426,143.08CPI
Supplies166,071.46PPI
VehicleO&M
Fuel,Oil&OtherFluids351,549.99Fuel
VehicleInsurance83,047.39PPI
VehicleRepair&Maintenance882,811.39PPI
Total3,909,623.31
G&AExpenses
CustomerService
CustomerServiceLabor197,778.21CPI
Billing169,256.73PPI
Administration
AdminServices511,326.50CPI
GeneralInsurance496,428.23PPI
OfficeExpenses470,926.40PPI
PublicInformation&Education99,045.94PPI
Total1,944,762.01
Vehicle&EquipmentCapital1,512,626.05Table2
Overhead,Tax241,166.27None
Total1,753,792.32
SubtotalCollectionCosts7,608,177.64

PROCESSING
O&M
Labor1,339,435.70Table4
Operations798,156.75Table4
ContingencyNotApplicableTable4
Total2,137,592.45
Capital
CapitalImprovementsNotApplicableTable3
Equipment498,484.00Table3
OtherStartUpCostsTable3
ContingencyNotApplicableTable3
Total498,484.00
SubtotalBaselineProcessing
Expenses2,636,076.45
TOTALBASELINEEXPENSES10,244,254.09
OperatingandCapitalCost Summaryincludes thefollowing:

Decreaseincollectionvehicle&equipmentcapitalduetoNVUSDchangeinscope).

Decreaseincollectionvehicle&equipmentcapitalbasedonTable2schedule.

DecreaseinprocessingcapitalequipmentbasedonTable3schedule.

DecreaseincostsduetoimpactofNorthernagreement(seeTableIa).

Additionof0.25FTEscalehousepersonneleffective 12/1/08.

Costreviewadjustmentseffective2/1/09.

Increaseintaxeseffective1/1/09.

Costreviewadjustmentseffective2/1/10.

Cost-of-livingadjustmentseffective10/1/05and211/07.

Cost-of-livingadjustmentseffective10/1/05,2/1/07,2/1/08,2/1/09and2/1/10.

3.1FOODWASTE

3.1.1FoodWasteCollection
Theannualcollectioncostsforthecommercialandresidentialfoodwasteprogramareshownin Table5belowin2004dollars.

Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

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Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

TABLE7.RESIDENTIALFOODWASTEPROCESSING
COSTCATEGORIESAnnualCostTotalsIndex
Capital
CapitalImprovementsNA
Equipment$12,500None
OthercapitalNA
ContingencyNA
Total$12,500
O&M
Labor$64,096CPI
Operations$16,056Fuel&PPI
ContingencyNA
Total$80,152
TotalResidentialFoodWasteComposting$92,652
LaborisescalatedbyCPI.FuelisescalatedbyFuelIndex.AllothercategoriesareescalatedbyPPI.

MIXEDC&DPROCESSING
InterimMixedC&D
IfdirectedbytheCity,ContractorwillimplementinterimmixedC&Dprocessing.Processing shallbeperformedasdescribedinAttachmentJ.

Thefollowingannualprocessingcosts(showninTable8belowin2004dollars)applyforeach yearoftheinterim mixedC&Dprocessingprogram.

TABLE8.INTERIMMIXEDC&D
COSTCATEGORIESAnnualCostTotalsIndex
Capital
CapitalImprovementsNA
EquipmentNA
OtherStart-upCostsNA
ContingencyNA
r$-
Labor$139,935CPI
OperationsNA
ContingencyNA
Total$139,935
Total
-$139,935

3.2.2PermanentMixedC&D
IfdirectedbytheCity,ContractorwillimplementpermanentmixedC&Dprocessing commencinginapproximatelyYear3oftheContract.Processingshallbeperformedas describedinAttachmentJ.Thefollowingannualprocessingcosts(showninTable9below) applyforeachyearofthepermanentmixedC&Dprocessingprogram,escalatedunderthe termsoftheContract.

3.2 321
Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

TABLE9.PERMANENTMIXED C&D
COSTCATEGORIESAnnualCostTotalsIndex
Capital
CapitalImprovementsNA
Equipment$5,000None
OtherStart-upCostsNA
ContingencyNA
Total$5,000
O&M
Labor$192,289CPI
Operations$29,088Fuel&PPI
ContingencyNA
Total$221,377
TotalMixedC&DProcessing$226,377
LaborisescalatedbyCPI.FuelisescalatedbyFuelIndex.Milother categoriesareescalatedbyPPI

3.3AeratedStaticPileComposting
IfdirectedbytheCity,Contractorwillimplementaeratedstaticpile(ASP)compostingsystemas describedinAttachmentJ.ASPtechnologyisan additional$5.00perton totheContractor’s costforturnedwindrowtechnologyattimeofimplementation.ThecostforASPtechnologywill beescalatedannuallybyCPI.

Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

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Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

Table 2a. COLLECTION CAPITAL COSTS (Effective 711/10)
Year
Index Unit Cost Total Cost Purchased Year 5(2010) Year 6(2011) Year 7(2012) Year 8 (2013) Year 9(2014) Year 10 (2015)Schedule of Assets Restdenial: sn1b.r&T9pe of Vehicles
AutomatedSideloaderiDiesel?9 None $ 250000 S 2,250000
AutornatedSkleloader/CNG?3 None $ 301,2O0,,,$ 903,600
Field Superchion Truck? Unleaded! 1 None $ 150004.5 30,000 Shop Truck I Unleaded? 1.04 None $ 25,043 J,$ 50087
Bin Deli’ery Van I Unleaded? I None $ 60,000 j$ 60,000
Manager’s Truck! Unleaded? .94 None TLf$ 37427
Residential Subtotal None J $ 3,331,114
Commercial: imberof&Type of Vehicles
Frcntloader! Diesel? 5 None $ 250,000 $ 1,250,000
Frontloaderl CNG /4 None $ 298,015 $ 1,192060
Field Superasion Truck? Unleaded 1.75 None $ 11,250 $ 22,500 Shop Truck? Unleaded? .6 None $ 14,609 $ 29217
Manager’s Truck? Unleaded? .06 None $ 2,466 $ 2,466
Commercial Subtotal None $ 2,496,244
Roll O5 Panb.r & Type c(Vehicles
Rof 06! Diesel! 4 None $ 160,000 $ 640,000
Field Steriosion Truck! Unleaded /25 None $ 3,750 $ 7,500 Shop Truck? Unleaded! 35 ji:i&— 1’ 8,346 - $ 16,696
Manager’s Truck/Unleaded?.003 None $ 106 S 106
Roll Off Subtotal — None $ 664,202
All Vehicle Subtotals (Sum Residential, None $ 6,491,660 Commercial and Roll Off):

BAAOMD Grant forT CNG Vehicles’— None 315,000 $ 315,000 All Vehicle Subtotals (Sum Residential, $ 6,176,660
Commercial and Roll Off) Less BAAQMD
Grant
225,000 $ 225,000 5 225,000 S
90,360 $ 90,360 $ 9,360 $
ã000 $ 3,000 $ 3,000 $
5,009 $ 5,009 $ 5,009 S
6,000 $ 6,000 $ 6,000 $
3743 $ 3,701T 3,743 $
333,111 $ 333,111 $ 333,111
125,000 $ 125,900 $ - 125,000 $
119,206 $ 119,206 $ 119,206 $
2,250 $ 2,250 $ 2,250 $
2,922 $ 2,922 $ 2,922i $
2005 $
2005 5
2005 $
2005 $
2005 $
2005
2005 $
2005 $
2005 $
2005 $
2005 $
2005 $
2005 $
2005 $
2005 $
2005 $
2476 247(1
249,624 $
2471 8
225,000 $ 225,000 $
90,360 6 90,360 $
3,000 $ 3,000 S
5,009 $ 5,009 $
6,000 $ 6,000 $
3,743 $ 3,743 $•
333,1119 333,111
125,000 $ ‘ 125,000 $
119,206 $ 119,206 $
2,250 $ 2,250 $
2,922-6 2,922 $
247 $ 247 $
249,624 $ 249,624 $
64,000 $ 64,000 S
750 $ 750 $
1,670 $ 1,670 $
— 11 5 11 S
— 66,430 $ 66,430 $
$‘‘ 649,166 $ 649,166 $
$ 31,500 $
$ 617,666 $
64,000 $
750 S
1,670 $
11 $
66,430 $
649,166 $
31,500 $
617,666 $
54,900 6 64,900
750$. 750
1,670 $ 1,670
11 $ 1-f
66,430 S 66,430
649,166 $ 849,166
6 of Resident Recycling Contahs50_
6 of Resident. Yard Waste. ContaIners 36,900
#of Resident. MsWContslners22,550-
35 gallon: 20,000
_________________________
65 gallon: 10,000
95on: 51,000
Ogalon: 1,000
‘Ised 06 Coqtstners: 22,000
F Coniinerctal8lns 2,550
2CY:300
S CV: 300
4 CV: 350
31,500 $ 31,500 $ 31,500
617,666 $ 617,666 $ 617,666
None S. 45 2,305,710
S 370
$ 230,571 1$
111.000
230,571 $
1,616 $
7,700 $
11,100 S
13,050 $
17,500 $
33,825 $
3,921 $
2,175 $
168,750
67,770
2,250
3,757
4,500,
2,807
249,834
93,750
89,405
1,608
2,191
105
187,218
48,000
563
1,252
49,823
486,875
23,625
463,250
47,100
29,408
172,928
1,212

5.775
8,325
9,788
13,125
25,369
2,941
1,631
9,000
28,688
34,781
16,200
7,500
5,000
891
1,500
18,247
724
(7,500)
895,882
11,100 S
13,050 $
17,500 $
33,825 $
3,921 $
2,175 $
0 CV: 500
65 Gallon Cart: 1,000
# of Temporary 3 CV BLns: 50
6 of Roll-Off Boxes: 350
10 CY: 50
20 CY: 125
30 cY: 125
40 CV: 50
,Recyc. Processing Equipment
-Equipment Wash Area
Soteem: 5-
Interest
‘None
None
None
None
None
None
None
None
None
None
None -
None
None
None
None
230,571 $
1,616 $
7,700 $
ii,ioô
13,0JS
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3,921 $
2,175 $

62.800 $ 62,800 $
59,210 $ 38,210 $
230,571 $ 230,571 $
— 1,616 $ 1,616 $
7,700 $ 7,700 $
11,100 $ 11,100 $
13,050 $ 13,050 5
17,500 $ 17,500 $
33,825 $ 33,825 $
3,92! $ 3,921 $
2,175 $ 2,175 $
$ 435 $ 130,500
$ 500 $ 175,000
$ 615 338,250
$ ‘‘T 39,210
$ . 435 21,750
$ 2,400 . 120,000
- 392oo
$ ‘‘i :463,750
$ 4,320 . 218,000
$ 106,000
2,500 $ -. 25,000
2,500 $ 25,000
2,375 $ . 11,875

20.000 1 ‘ 20,000
200$
2006
2005
2005 $
2005 $•
2005 $
2005 $
2005
2005 $
2005 $
2005 $
2005 $
2005 $
2005 $
2005 $
2005 $
2005 $
2005 •$
2005 $
$
$
$
$
12,000 $ 12,000 $ 12,000 $ 12,000$
38,250 $ 38,250 $ 38,250 $ 38,25w
46,375 $ 46,375 $ 46,375 $ 46,375
21,600 $ 21,600 $ 21,600 $ 21,600$
None
$ . 205000
12,000 $
38,250 $
46,375 $
21,600 $
$
.dr1uionsi CwlyIng COsta for CNG Vehicles” , $ . 9,650
Adjustment for Change In InItial Truck Pumhse rdone . $ (100,000) .3RAND TOTAL Assets $ 14,431,349
2,641,234
North6m (7/hOT)
10,000 $ 10,000 $ 10,000 $ 10.000 S
3,750$____ -$ -$ $‘_ -$
- S 8,000 $ 5,000 $ 5,000 5 $
1,188 $ 1,188 $ 1,188 $ 1,188 S Th188 $
2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $
-$ .-_$ -$ - -5
275,052 $ 228,462 $ 179,487 $ 128,007 $ 73,855J’$
905 5 . 905$ 965$ 965$
(10,000) 5. (10,000) $ (10,000) $ (10,000) $ (I0.OooJf$ 1,442,314 $ 1,396,974 $ 1,347,999 $ 1,2e6,5i9$i2iij$
$ (32,761).
$ (419)
$ 41,034
$ 16,884
$ 1,467,053
‘63*5,0000(801 to capital coats either by Contractor or by BMQMD Want Salda .015 - Grant Funds pay $45,000 Dec ehicle. Cerreina Cost er56%.

Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

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Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

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Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

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Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

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Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

ATTACHMENTBB
EXHIBIT3

MAPOFFIVE-MILERADIUSFROMENTRANCETOMATERIALSDIVERSIONFACILITY 1 -
C.

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Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

EXHIBIT4

ATTACHMENTCC
LISTOF BALERSPROVIDEDBYCONTRACTORPURSUANTTOSECTION6.03.02 Contractor’sAffiliatesprovide4balers,alllocatedatAmcanBeverage,Inc.,1201Commerce Boulevard,AmericaCanyon,California94503.

Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

EXHIBIT5

ATTACHMENTDD

MATERIALSDIVERSIONFACILITYPAIDREPORT
“MaterialsMarketedFortheMaterialsSalesMonth(From21stofMonthto2Oof FollowingMonth)—basedonreceiptsandallother documentationfromsaleofmaterials PeriodCovered:21stofthemonth,through20thdayofthefollowingmonth DueDate:2O’ofthemonthfortheperiodendingthe20thoftheprecedingmonth SubmittalFormat:Electronicsortableformat(e.g.Excelpivottableorequivalentthatis compatiblewithCitycomputerhardwareandsoftware) Submittedviae-mailinformatincluded inthisAttachmentDOasmay beperiodicallyrevisedbyCity
MaterialTypes:ThereportshallincludeallinformationlistedinthisAttachmentDDforthe followingmaterialtypesaswellasanynewmaterialtypesprocessedattheMaterialsDiversion FacilityonorafterMay1,2008:
a.Cardboard
b.Cardboard#12
c.Newspaper
d.MixedPaper
e.WaxedCardboard
f.#1PETPlasticBottles(includingCRVRC,CRVCPandCRVCS)
g.ColoredHDPEPlasticBottles(includingCRVRC,CRVCPandCRVCS) h.NaturalHOPEPlasticBottles(includingCRVRC,CRVCPandCRVCS) i.AluminumCans(includingCRVRC,CRVCPandCRVCS)
j.Mixed#1-7Rigid/Non-CRyPlastics(C&D)
k.Mixed#1-7Rigid/Non-CRVPlastics(Re-Use/BuyBack)
I.ClearFilmPlastic
m.ColoredFilmPlastic
n.PETFilmPlastic(rollsandbales)
o.#3PVC(includingCRVRC,CRVCPandCRVCS)
p.#4LOPE(LowDensityPolyetheylene(includingCRVRC,CRVCPandCRVCS) q.#5PP(Polypropylene(includingCRVRC,CRVCPandCRVCS)
r.#6PS(Polystyrene)(includingCRVRC,CRVCPandCRVCS)
s.#7Otherplasticsincludingpouchesandunspecifiedresins)(includingCRVRC, CRVCPandCRVCS)
t.BimetalCans(includingCRVRC,CRVCPandCRVCS
u.MixedGlassContainers(includingCRVRC,CRVCPandCRVCS)
v.Clear-OnlyGlassContainers(includingCRVRC,CRVCPandCRVCS) w.Colored-OnlyGlassContainers(includingCRVRC,CRVCPandCRVCS) x.ElectronicWaste(BothCoveredElectronicWasteandElectronicWaste) y.CarpetUnderpadding
Content:Theinformationtobeprovidedincludesbutisnotlimitedtothefollowingforeachand everymaterialssalestransaction:
•MDFticketnumber
•Monthshipped
•Dateshipped
•Nameofscrapbuyer
Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

•NameofCRVbuyerand/orbroker
•Materialtype
•ForelectronicwastelistpoundsofcomputersandpoundsofCRT’splustotal ElectronicWastetons
•Containernumber
•Bookingnumber
•Seal number
•WeightofloadoutboundatMDFscalehouse(intons)
•Buyerpaidpounds
•BuyerPaidTons
•Totalcheckamountforscrapvalue
•TotalcheckamountforCRVvalue
•AggregatecheckamountforscrapandCRVvaluetogether
•Numberofpoundsintheloadthatcamefromabuybackcenterorrecycling centerprogram(“RCpounds”)
•Numberofpoundsintheloadthatcamefromacurbsiderecyclingprogram(“CS pounds”)
•Numberofpoundsintheloadthatcamefromacollectionprogram(“CPpounds”) •Dollarspaid forRCCRV
•DollarspaidforCSCRV
•DollarspaidforCPCRV
•Scrappriceperpound
•Scrappriceperton
•Dollarspaid forRCscrap
•Dollarspaid forCSscrap
•DollarspaidforCPscrap
•RCtotaldollarsperton
•CStotaldollarsperton
•CPtotaldollarsperton
•Totaldollarspertonreceived.

Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

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Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

EXHIBIT6

ATTACHMENTEE

NAPAMATERIALSDIVERSIONFACILITYOPERATINGREGULATIONS
(UpdatedJune25, 2010)

1.MDFHoursofOperationsandAccessPolicies
a)ForgeneralpublicusersoftheMDF,thedailyhoursarefrom8:00a.m.to4:00p.m. b)TheMDFisclosedfourdayseachcalendaryear(NewYear’sDay,EasterSunday, ThanksgivingDayandChristmasDay).
c)TheMDFwillcloseat3:00p.m.onmajor holidaysincludingMartinLutherKingJr.

Birthday,Presidents’Day,MemorialDay,4” ofJuly,LaborDay,DayafterThanksgiving andatnoononChristmasEve.Publicnoticeswillbepostedandsentoutto jurisdictionalusers.
d)Forcommercialcompostandotheroutboundorganics(e.g.,woodchips,yardwaste overs,etc.),theMDFmayacceptvehiclesfrom6:15a.m.until4:00p.m.Thisrestriction parallelsthecurrentpermitrequirementsandoperationalconsiderationsforthe compostingandwoodprocessingareas.
e)Forcommercialusers(NRWS/NCRWS&jurisdictionalcustomers)ofthecleanMaterials RecoveryFacility(MRF)andsourceseparatedconstructionanddemolitionmaterials (C&D),theMDFcanacceptvehiclesforoffloadingfrom6:15a.m.through4:00.p.m. f)ForcommercialusersoftheMRFandC&DareasattheMDFthatintendtobeloaded withoutboundmaterials,theMDFwillacceptvehiclesbetweenthehoursof6:15a.m. and4:00p.m.

2.GatehouseandWeighscalePolicies
a.Allinboundloadsforprocessingmustbeweighed(includingloadsfortransferonly). b.Withtheexceptionofcompostpurchasedbyself-haulusers,alloutboundloadsmust alsobeweighed.
c.AllvehiclesmustcheckinwithscalehouseattendantwhenenteringorleavingMDF.

TheonlyexceptiontothisruleisinboundNRWS/NCRWSor jurisdictionalusersthat haveanapprovedtareweightloadedintothescalehousetrackingsoftware—these inboundusersmaycheckpriortooff-loadingandarenotrequiredtogooverthescales againafteroffloading.
d.Withtheexceptionsnotedinitembandcabove,allvehicles(bothinboundand outboundusers)mustcheckinwithscalehouseattendanttoestablishanemptytare weightand loadedgrossweights.NOVEHICLEWILLBEALLOWEDTOLEAVETHE MDFWITHAGROSSWEIGHT EXCEEDING80,000LBS.
e.Outboundloadscontainingmorethanonetypeofmaterialmusthaveeachmaterial weighedseparately(i.e.,vehiclemustweighafterloadingeachtypeofmaterial). f.OutbounddisposalresiduefromMDFmustbeseparatelyweighedbyprocessingarea. g.Theuniversalweighingrequirementsdescribedin2athrough2fabovemaybealteredor amendedperiodicallybytheCityifnecessaryforcompliancewithpermitregulations.

Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

3.MDFTrafficFlow&LoadCheckProvisions
a)MDFspottersmustbeavailabletodirectcustomerswheretodepositloads,andwhere topickupmaterials.SpottersmustbeabletospeakEnglish.
b)Spottersaretoobserveloadsofmaterialsastheyaredischargedfromvehiclesateach processingareaforhazardousmaterialsandcontaminationthatexceedslimits c)Asageneralrule,customersshouldbedirectedtotaketheoldestcompostmaterialfirst.

4.Safety&MaterialStorageProvisions
a)Exceptforpersonneloperatingorfeedingtheshredder,noperson(employee,customer, orCitypersonnel)isallowedwithin30ftoftheshredderwhenitisoperating. b)AllusersofMDFwilltreatemployeesoftheCityandNRWSwithcourtesyandrespectat alltimesandrespondtodirectionfromMDFstaffaccordingly.Anyuserorcustomerthat doesnotcomplywiththispolicymaybeaskedtoleavetheMDFpremisesimmediately andmaybepreventedfromfutureaccessanduseprivilegesattheMDF. c)Cleanliness
a.AllareasoftheMDFaretobesweptdaily.
b.Streetfrontagesaretobecleanedatleasttwiceperweek.
c.Materialsaretobestoredtominimizenuisance,health,andsafetyproblems.

Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

Attachment AA
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

[END OF ATTACHMENT AA]
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

Attachment BB Page 1 of 1 17651586.1

ATTACHMENT BB

MAP OF FIVE-MILE RADIUS FROM ENTRANCE TO MATERIALS DIVERSION

FACILITY

Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

Attachment CC Page 1 of 1 18349558.1

ATTACHMENT CC

LIST OF BALERS PROVIDED BY CONTRACTOR PURSUANT TO SECTION 6.03.02

Contractor’s Affiliates provide 5 balers. Two balers are located at Amcan Beverage, Inc., 1201 Commerce Boulevard, America Canyon, California 94503, one is located at Don Sebastiani & Sons, 520 Airpark Rd, Napa, CA 94558, one is located at Valley Wine Warehouse, 175 Tower Rd, American Canyon, CA 94503, and one is located at Vinpack, 644 Hanna Drive Suite D, American Canyon, CA 94503.

Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

Attachment DD Page 1 of 2 17651610.1

ATTACHMENT DD

MATERIALS DIVERSION FACILITY PAID REPORT

“Materials Marketed For the Materials Sales Month (From 21 st of Month to 20 th of Following Month) – based on receipts and all other documentation from sale of materials Period Covered: 21st of the month, through 20th day of the following month Due Date: 20th of the month for the period ending the 20 th of the preceding month
Submittal Format: Electronic sortable format (e.g. Excel pivot table or equivalent that is compatible with City computer hardware and software) Submitted via e -mail in format included in this Attachment DD as may be periodically revised by City Material Types: The report shall include all information listed in this Attachment DD for the following material types as well as any new material types processed at the Materials Diversion Facility on or after May 1, 2008:
a. Cardboard
b. Cardboard #12
c. Newspaper
d. Mixed Paper
e. Waxed Cardboard
f. #1 PET Plastic Bottles (including CRV RC, CRV CP and CRV CS) g. Colored HDPE Plastic Bottles (including CRV RC, CRV CP and CRV CS) h. Natural HDPE Plastic Bottles (including CRV RC, CRV CP and CRV CS) i. Aluminum Cans (including CRV RC, CRV CP and CRV CS)
j. Mixed #1-7 Rigid/Non-CRV Plastics (C&D)
k. Mixed #1-7 Rigid/Non-CRV Plastics (Re-Use/BuyBack)
l. Clear Film Plastic
m. Colored Film Plastic
n. PET Film Plastic (rolls and bales)
o. PET Foil
p. #3 PVC (including CRV RC, CRV CP and CRV CS)
q. #4 LDPE (Low Density Polyetheylene (including CRV RC, CRV CP and

CRV CS)
r. #5 PP (Polypropylene (including CRV RC, CRV CP and CRV CS) s. #6 PS (Polystyrene) (including CRV RC, CRV CP and CRV CS) t. #7 Other plastics including pouches and unspecified resins) (including CRV RC, CRV CP and CRV CS)
u. Bimetal Cans (including CRV RC, CRV CP and CRV CS
v. Scrap Metal
w. Mixed Glass Containers (including CRV RC, CRV CP and CRV CS) x. Clear-Only Glass Containers (including CRV RC, CRV CP and CRV CS) y. Colored-Only Glass Containers (including CRV RC, CRV CP and CRV CS) z. Milk Cartons/Aseptic
aa. Clean Chipped Wood
bb. Sheetrock
cc. Electronic Waste (Both Covered Electronic Waste and Electronic Waste) dd. Carpet Underpadding
ee. Carpet 6.0
ff. Carpet 6.6
gg. Carpet - Other
Proposed SB 1383 Contract Amendment (4/6/2023 Version)

EXHIBIT A

Attachment DD Page 2 of 2 17651610.1
hh. Cooking Oil
ii. Used Motor Oil

Content: The information to be provided includes but is not limited to the following for each and every materials sales transaction:
• MDF ticket number
• Month shipped
• Date shipped
• Name of scrap buyer
• Name of scrap broker
• Name of CRV buyer
• Name of CRV broker
• Amount of broker fee(s) and to whom fee(s) were paid
• Material type
• For electronic waste list pounds of computers and pounds of CRT’s plus total Electronic Waste tons
• Container number
• Booking number
• Seal number
• Weight of load outbound at MDF scale house (in Tons)
• Buyer paid pounds
• Buyer Paid Tons
• Total check amount for scrap value
• Total check amount for CRV value
• Aggregate check amount for scrap and CRV value together • Number of pounds in the load that came from a buyback center or recycling center program (“RC pounds”)
• Number of pounds in the load that came from a curbside recycling program (“CS pounds”)
• Number of pounds in the load that came from a collection program (“CP pounds”)
• Dollars received for RC CRV
• Dollars received for CS CRV
• Dollars received for CP CRV
• Scrap price received per pound
• Scrap price received per Ton
• Dollars received for RC scrap
• Dollars received for CS scrap
• Dollars received for CP scrap
• RC total dollars received per Ton
• CS total dollars received per Ton
• CP total dollars received per Ton
• Total dollars per Ton received

In addition to the foregoing, Contractor shall submit scanned PDF copies of Purchase Orders via e-mail for all materials marketed from the MDF during the reporting period. In lieu of scanned PDF copies Contractor may submit hard copies of the Purchase Orders.

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Attachment EE Page 1 of 2 18595891.1

ATTACHMENT EE

NAPA MATERIALS DIVERSION FACILITY OPERATING REGULATIONS (Updated 2022)
NOTE: This Attachment EE provides a simplified list of MDF Operating Regulations that can be given to MDF users and employees. This Attachment also includes operating requirements that have developed over time as experience was gained in operating the MDF. See Attachment F for the full “Scope of Work For Operations at Napa Materials Diversion Facility”.

1. MDF Hours of Operations and Access Policies

a) For general public users of the MDF, the daily hours are from 8:00 a.m. to 4:00 p.m. b) The MDF is closed four days each calendar year (New Year’s Day, Easter Sunday, Thanksgiving Day and Christmas Day).
c) The MDF will close at 3:00 p.m. on major holidays including Martin Luther King Jr.

Birthday, Presidents’ Day, Memorial Day, Independence Day, Labor Day, Day after Thanksgiving and at noon on Christmas Eve. Public notices will be posted and sent out to jurisdictional users.
d) For commercial compost and other outbound organics (e.g., wood chips, yard trimmings, overs, etc.), the MDF may accept vehicles from 6:00 a.m. until 4:00 p.m. This restriction parallels the current permit requirements and operational considerations for the composting and wood processing areas.
e) For commercial users (NRWS/NCRWS & jurisdictional customers) of the clean Materials Recovery Facility (MRF) and source separated construction and demolition materials (C&D), the MDF can accept vehicles for offloading from 5:00 a.m. through 4:00 p.m. f) For commercial users of the MRF and C&D areas at the MDF that intend to be loaded with outbound materials, the MDF will accept vehicles between the hours of 6: 00 a.m. and 4:00 p.m.
g) City shall have the right to make minor temporary changes in public hours of operation of the MDF with forty-eight (48) hours written notice to Contractor. Example: In anticipation of a holiday like Memorial Day, and acknowledging that Contractor will be providing scalehouse coverage to City on that holiday, City may decide to close the gate to the public at 2:00 p.m. instead of at 3:00 p.m. In such an event City agrees to consult with Contractor prior to sending formal written notice and further agrees to provide Contractor with formal written notice via electronic mail or hand delivery at least forty -eight (48) hours in advance of the change.

2. Gatehouse and Weighscale Policies

a) All inbound loads for processing must be weighed (including loads for transfer only). b) With the exception of compost purchased by self -haul users, all outbound loads mus t also be weighed.
c) All vehicles must check in with scalehouse attendant when entering or leaving MDF.

The only exception to this rule is inbound NRWS/NCRWS or jurisdictional users that have an approved tare weight loaded into the scalehouse tracking softw are – these inbound users may check prior to off -loading and are not required to go over the scales again after offloading.
d) With the exceptions noted in item s b and c above, all vehicles (both inbound and outbound users) must check in with scalehouse attendant to establish an empty tare Proposed SB 1383 Contract Amendment (4/6/2023 Version)

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Attachment EE Page 2 of 2 18595891.1
weight and loaded gross weights. NO VEHICLE WILL BE ALLOWED TO LEAVE THE MDF WITH A GROSS WEIGHT EXCEEDING 80,000 LBS. **Weight exemptions for CNG, Electric and other alternative fuel vehicles**

e) Outbound loads containing more than one type of material must have each material weighed separately (i.e., vehicle must weigh after loading each type of material). f) Outbound disposal residue from MDF must be separately weighed by processing area. g) The universal weighing requirements described in 2a through 2f above may be altered or amended periodically by the City if necessary for compliance with permit regulations.

3. MDF Traffic Flow & Load Check Provisions

a) MDF spotters must be available to direct customers where to deposit loads, and where to pick up materials. Spotters must be able to speak English. b) Spotters will attempt to observe loads of materials as they are discharged from vehicles at each processing area for hazardous materials and contamination that exceeds limits c) As a general rule, customers should be directed to take the oldest compost material first.

4. Safety & Material Storage Provisions

a) Except for personnel operating or feeding the shredder, no person (employee, customer, or City personnel) is allowed within 10 ft. of the shredder when it is operating. b) All users of MDF will treat employees of the City and NRWS with courtesy and respect at all times and respond to direction from MDF staff accordingly. Any user or customer that does not comply with this policy may be asked to leave the MDF premises immediately and may be prevented from future access and use privileges at the MDF. c) Cleanliness
a. All areas of the MDF are to be swept daily.
b. Street frontages are to be cleaned at least twice per week. c. Materials are to be stored to minimize nuisance, health, and safety problems.

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Attachment FF Page 1 of 1 17651616.1

ATTACHMENT FF
Buyer/Broker Information Sheet

Please enter all of the listed information for the buyer or broker. The Buyer/Broker Sheet must be submitted to the MDF scalehouse attendants a minimum of two business days prior to making the first shipment to a new buyer or broker. A revised Buyer/Broker sheet must be submitted within ten days of any material change in the information listed below.

All capitalized words not defined below have the meaning as defined in the City-NRWS Contract.

Name ________________________________________________________

Address ________________________________________________________________

City _____________________________ State _______________Zip Code___________

Telephone ________________________ E-mail ________________________________

Website __________________ Business is a Buyer ______ Broker______ (check all that apply)

Contact Person _______________________ Title ______________________________

Business is ___ Corporation ___LLC ___Partnership ___Sole Proprietorship ____ Other __________________(fill in business type)

Type(s) of material purchased _______________________________________________

________________________________________________________________________

Business is a Processor ___Re-seller ___End User ___ Other ____ (check all that apply) Is the buyer/broker an Affiliated Entity to NRWS? Yes___ No ___ An “Affiliated Entity” means any Person which is related to the Contractor by virtue of a direct or indirect ownership interest or common management. “Affiliated Entities” include (1) a Person in which the Contractor has a direct or indirect ownership interest, (2) a Person which has a direct or indirect ownership interest in Contractor, and (3) a Person which is owned or controlled by any Person which has a direct or indirect ownership interest in Contractor. For purposes of determining whether an indirect ownership interest exists , the constructive ownership provisions of the Internal Revenue Code in effect as of the Effective Date, shall apply, except that “ten percent (10%)” shall be substituted for “fifty percent (50%)” in Section 318(a)(2)(C) and 318(a)(3)(C). “Person” includes any individual, firm, association, organization, partnership, corporation, business trust, joint venture, the United States, the State of California, the Cou nty, municipality or special purpose district or any other entity whatsoever.” “Contractor” means Napa Recycling and Waste Services, LLC, which is the Contractor referred to in Section 5.60.010 of the City’s Municipal Code. Contractor is the City’s authorized rec ycling agent.”

Does this business ever charge NRWS any type of a Broker Fee? Yes___ No ___ A “Broker Fee” includes any remuneration paid by NRWS to a third party or exacted from NRWS by a third party for the act of brokering or facilitating the sale or exchange of Recyclable Materials, Compost, Recovered Materials, energy or any other materials marketed by NRWS from the MDF. Broker Fee includes, but is not limited to, any charge, percentage, flat fee, deduction from total revenue owed or paid for materials, or any other remuneration charged, claimed or exacted (including any trade, barter or exchange for services or other goods) by a business, Person, organization or any other entity due to facilitating the sale of Recyclable Materials, Compost, Recovered Materials, energy or any other materials marketed by NRWS from the MDF. Broker Fee does not mean adjustments made to the price paid for materials due to the quality of the materials (such as moisture deductions or downgrading of material type due to poor quality or contamination) nor does Broker Fee mean transportation costs or other freight or shipping costs, demurrage fees or other routine costs for storage and transportation of the materials.

If the answer above is “yes” what amount and type of fee is charged?_______________ (If a Broker Fee appears anywhere on any Purchase Order from this Buyer/Broker it must be reported on this sheet. If the Broker Fee varies depending upon material type or other factors list the range of amounts, percentages, etc.)

I, the undersigned, declare under penalty of perjury that I am an authorized representative of Napa Recycling and Waste Services, LLC and that all of the foregoing information is true and correct.

_________________________________________ Date _________________________ Signature
Print name and Title _______________________________________________________ Proposed SB 1383 Contract Amendment (4/6/2023 Version)

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Attachment GG Page 1 of 7 18607392.1

ATTACHMENT GG

ADDITIONAL PAYMENT CALCULATION METHODOLOGY
FOR 2013 TO END OF TERM

The following methodology, and the sample calculations below it , illustrate how to calculate the Over Baseline tonnage to be used in the calculation of the Additional Payment. Not all defined terms have been capitalized in order to make the document and the instructions easier to read and utilize. If any conflict arises between this Attachment GG and the Contract, the Contract shall prevail.

Calculation of Over Baseline Tonnage

Overview

Use the MDF scalehouse Soft-Pak database to sort the inbound Tons to the MDF. As described in the Contract, tonnage eligible for the Additional Payment includes those materials processed in the four processing areas: Composting Area, Clean MRF, Wood Processing Area, and Source Separated C&D Area using the clarifications and exceptions noted below.

Inbound materials from the Transfer Station are excluded from any Over Baseline calculations .

Only materials that are processed at the MDF are eligible for inclusion in the Additional Payment.

Materials received at the MDF for handling and transfer only, but not processed (e.g. Electronic Waste, Bulky Goods, Carpet, Pre -Processed Market-Ready Materials from Northern), are not included in the tonnage calculations for the Additional Payment. Materials collected by the Recycle More program are “transfer-only” materials, and are also excluded.

Effective January 1, 2013, metal appliances collected in roll off boxes are treated as metal and are eligible for the Additional Payment. From 2006-2012, metal appliances were categorized as “transfer only” materials and were excluded from the calculations.

After checking the eligibility of the specific processed Tons obtained from the scalehouse, the City will review the Contractor or MDF scalehouse documentation to research any questionable materials and/or loads. In the event of a discrepancy between the MDF scalehouse records and Contractor’s records, the MDF scalehouse records shall be determinative. A fter the above- described exceptions are excluded, the net tonnage remaining is the Over Baseline (OB) Tonnage eligible for compensation.

Summary

There are four (4) processing areas:

• Composting Area
• Clean MRF
• Wood Processing Area
• Source Separated C&D Area

For each of the four (4) processing areas, there are two (2) OB expansion levels. They are:
• Expansion Capacity Level 1
• Expansion Capacity Level 2
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Table 1 below shows the tonnage range for each of the two Expansion Levels.

Table 1 - Tonnage Ranges for Baseline and Expansion Capacity Levels 1 and 2 Baseline
(Tons/Year)
Expansion Capacity
Level 1 (Tons/Year)
Expansion Capacity
Level 2 (Tons/Year)
Composting Area 40,670 40,671-51,215 51,216 and above
Clean MRF 19,290 19,291-27,720 27,721 and above
Wood Processing 3,970 3,971-5,760 5,761 and above
Source Separated
C&D Processing
16,620 16,621-19,493 19,494 and above
TOTAL 80,550

The tonnage processed in each of the four processing areas must equal 80% or more of the required specific baseline tonnage before the Contractor is eligible for any Additional Payment.

Methodology

Step 1:

The first step in establishing whether an Additional Payment is due is to determine if the tonnage processed in each of the four processing areas equals 80% or more of the required specific baseline tonnage. The specific tonnage for each of the four areas is shown in Table 2 below.

These are fixed threshold tonnages as set forth in the Contract in 2004.

Table 2 - Required 80% Tonnage Amounts for Each Processing Area A. Baseline
Tons/Year
B. 80% Threshold of
Baseline Tons/Year
C. Threshold
Exceeded?

1. Composting Area 40,670 32,536 Yes / No

2. Clean MRF 19,290 15,432 Yes / No

3. Wood Processing 3,970 3,176 Yes / No

4. Source Separated
C&D Processing
16,620 13,296 Yes / No
TOTAL 80,550

Again, no Additional Payment is due to the Contractor unless all four threshold tonnages in Table 2 have been met in each of the four processing areas and unless the Baseline total of 80,550 Tons has been exceeded.

Step 2:

Step 2 is to calculate the Processed Tonnage for each Processing Area that exceeds its qualifying Baseline threshold (refer to Baseline Column A in Table 3 below). NOTE: In some years, not all Processing Areas will receive an expansion level payment.

Example 1: Tonnages within Expansion Capacity Level 1 Only

For this sample calculation, a hypothetical total of 100,000 Tons were delivered to the MDF for processing in the year under review. The 100,000 processed Tons were distributed in each of the four Processing Areas as follows:

• 50,000 Tons in the Composting Area
• 20,000 Tons in the Clean MRF area
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• 5,000 Tons in the Wood Processing area
• 25,000 Tons in the Source Separated C&D Processing area

Processed tonnage (Column B in Table 3 below) is shown for each of the four Processing Areas for this sample calculation.

Table 3 - Sample Expansion Capacity Level 1 Calculation to Determine the Amount by which Processed Tonnage Exceeds Baseline Tons/Year
A. Baseline
Tons/Year
B. Processed
Tonnage
C. Processed Tonnage
Exceeding Baseline

1. Composting Area 40,670 50,000 9,330

2. Clean MRF 19,290 20,000 710

3. Wood Processing 3,970 5,000 1,030

4. Source Separated C&D
Processing
16,620 25,000 8,380
TOTAL 80,550 100,000 19,450
To repeat, the Baseline tonnages in Column A are the fixed threshold tonnages set forth in the Contract. This example uses a hypothetical 100,000-T on figure as the total Tons processed at the MDF and, for purposes of this example, distributes tonnages to each of the four Processing Areas to illustrate how an Additional Payment would be calculated. For instance, in the table above, the Processed Tonnage Exceeding the Baseline shown in Column C is equal to the Processed Tonnage shown in Column B minus the Baseline Tons per Year shown in Column A (Row 1  50,000 processed Tons – 40,670 baseline Tons = 9,330 Tons over baseline).

Example 2: Determining Unit Cost:

This next step begins the actual calculation of the Additional Payment. The Additional Payment is calculated by taking the Tons for each of the four processing areas as determined in Step 2 and multiplying them by each of the Processing Areas’ per-Ton processing cost.

The per-Ton processing cost for each of the four Processing Areas is called the Unit Cost ($/ton).

It is based on the Unit Costs in the Contract, which have been escalated during each year . The CY 2017 per-Ton processing cost (Unit Cost) for each of the four Processing Areas in Expansion Capacity Level 1 are:

• Composting area: $26.85
• Clean MRF: $ 76.73
• Wood Processing Area: $ 23.03
• Source Separated C&D Processing Area: $ 17.92

Note: The unit costs above are the actual CY 2017 escalated costs and may not agree with hypothetical unit costs included in Table 2.

Example 3: Inflating the Unit Cost Using PPI

As noted in above, the Unit Cost is used in calculating the Additional Payment. Begin by determining the inflation of the unit cost. For example, the Unit Costs for CY 2017 are calculated by escalating the Unit Costs for CY 2016 by the “Other Cost Index” described in Attachment A of the Contract (PPI Series WPUFD4131 Finished Goods Less Food and Energy) . In the calculation, Unit Costs are rounded to two decimal places.

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Attachment GG Page 4 of 7 18607392.1
Unit Costs for subsequent years will be calculated by escalating the Unit Costs for the prior year by the “Other Cost Index” described in Attachment A (PPI Series WPUFD4131 Finished Goods Less Food and Energy)).

Table 3 shows a sample calculation that inflates the CY 2016 Unit Cost by a hypothetical CY 2017 inflated PPI percentage for Expansion Capacity Level 1 for each of the four Processing Areas .

The inflated Unit Costs for each Processing Area shown in Column D of Table 3 are calculated by multiplying the CY 2016 Unit Cost (Column B) by the PPI Escalation (Column C). Example:
$26.38 x 1.018 = $26.85.

Table 3 - Expansion Capacity Level 1 CY 2017 Unit Cost PPI Escalation Sample Calculations per Processing Area
A. Expansion
Capacity Level 1
B. 2016
Unit Cost
C. PPI
Escalator
D. 2017
Unit Cost

1. Composting Area $26.38 1.018 $26.85

2. Clean MRF $75.37 1.018 $76.73

3. Wood Processing $22.62 1.018 $23.03

4. Source Separated
C&D Processing
$17.60 1.018 $17.92
(Note: The Unit Costs for CY 2017 shown in the example above are the actual Unit Costs for CY 2017.)

Example 4: Calculating Payment
Using the calculated Processed Tonnage Exceeding Baseline values for each processing area, it is now possible to calculate the Additional Payment for Expansion Capacity Level 1.

Multiply the total Processed Tonnage exceeding the Baseline for each processing area by the calculated Unit Cost (step 4) to determine the Additional Payment . For example, for the Composting Area:

• (From step 2) Total Processed Tonnage Exceeding Baseline = 9,330 Tons • (From step 4) Unit Cost = $26.85
• Calculated Additional Payment for Composting Area in Expansion Capacity Level 1 is:
9,330 Tons x $26.85 (Weighted Unit Cost) = $250,510.50

This calculation would occur for each of the processing areas to determine the total payment amount under Expansion Capacity Level 1.

Example 5: Additional Payment Due for Expansion Capacity Level 2 In the hypothetical sample calculation used above, the total Processed Tonnage figure used was 100,000 Tons. The tons of materials processed at the MDF was sufficient to trigger an Over - Baseline payment for Expansion Capacity Level 1. In this step, hypothetical tonnage example s that are greater than the Expansion Capacity Level 1 range and that could trigger an Expansion Capacity Level 2 payment will be provided.

Once again, it is critical to check that the Processed Tonnage is greater than the baseline of 80,550 Tons. We will now calculate what the Over -Baseline payment would be using a Total Processed Tonnage of 126,000 Tons.

The 126,000 processed Tons were distributed in each of the four Processing Areas as follows:

• 6 0,000 Tons in the Composting Area
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• 35,000 Tons in the Clean MRF area
• 6 ,000 Tons in the Wood Processing area
• 25,000 Tons in the Source Separated C&D Processing area

Column B in Table 4 below shows each of the four Processing Areas and their respective tonnages for this sample calculation.

Table 4 Sample Expansion Capacity Level 1 and Level 2 Calculations to Determine the Amount by which Processed Tonnage Exceeds Baseline Tons/Year

A.

Baseline
Tons/Yea
r
B.

Processed
Tonnage
C. Total
Processed
Tonnage Above
Baseline
D. Tonnage Above Baseline

Expansion
Capacity
Level 1
Expansion
Capacity Level
2 1. Composting
Area 40,670 60,000 19,330 10,545 8,785

2. Clean MRF 19,290 35,000 15,710 8,785 6,925

3. Wood
Processing 3,970 6,000 2,030 1,790 240

4. Source
Separated C&D
Processing
16,620 25,000 8,380 2,873 5,507
TOTAL 80,550 126,000 45,450 23,993 21,457

This example will show how to calculate an Additional Payment when the processed tonnage falls within the range of both Expansion Capacity Levels 1 and 2.

In Table 4 above, for the Composting Area, take the Processed Tonnage (Column B) of 60,000 Tons and subtract it from the Baseline Tons (Column A) of 40,670 Tons. This leaves a total of 19,330 Tons (Column C), which is eligible for an Expansion Capacity Level 1 and Expansion Capacity Level 2 payment. It is necessary to consult Table 5, and look for the range of tonnage for the Composting Area. The upper expansion level 1 boundary for the Composting Area is 51,215 Tons and the lower boundary is 40,670 Tons. This is a range of 10,545 Tons that gets paid at Expansion Level 1.

The next step is to calculate the portion of Processed Tonnage in the Composting Area that falls into Expansion Capacity Level 2. In our example, 60,000 Tons were processed, which was 19,330 Tons more than the baseline of 40,670 Ton s. Any Ton above the total of the upper Expansion Capacity Level 1 boundary of 51,215 Tons falls into the Expansion Capacity Level 2 payment.

Again, a total of 19,330 Tons was processed above the baseline tonnage. This tonnage is apportioned between two expansion levels that exceed the baseline – the Expansion Capacity Level 1 tonnage of 10,545 and the Expansion Capacity Level 2 tonnage of 8,785 Tons. Thus, the total 60,000 Tons processed equals the baseline tonnage of 40,670 Tons plus the 10,545 Tons in expansion capacity level 1 plus the 8,785 Tons in expansion capacity level 2.

The ranges for the two Expansion Capacity Levels 1 and 2 are shown in Table 5 below. Please review Table to identify the specific tonnage ranges for each capacity level and the corresponding ranges for each Processing Area. These ranges are used repeatedly to identify when, and at what level, an Additional Payment is due.

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Attachment GG Page 6 of 7 18607392.1
Table 5 Tonnage Range for Expansion Capacity Levels 1 and 2 Baseline
(Tons/Year)
Expansion Capacity
Level 1 (Tons/Year)
Expansion Capacity
Level 2 (Tons/Year)
Composting Area 40,670 40,671-51,215 51,216 and above
Clean MRF 19,290 19,291-27,720 27,721 and above
Wood Processing 3,970 3,971-5,760 5,761 and above
Source Separated
C&D Processing
16,620 16,621-19,493 19,494 and above

With the aid of Table 5, the Additional Payment is now calculated for the remaining three Processing Areas. For the Clean MRF, Wood Processing, and Source Separated C&D Processing Areas, the over baseline tonnages ar e calculated in the same manner as described for the Composting Area.

Example 6: Determining the Unit Cost
NOTE: The Unit Costs that are applied to Expansion Capacity Level 2 are shown in Table 6 below.

Table 6 - Expansion Capacity Level 2 2017 Unit Cost PPI Escalation Sample Calculations per Processing Area
A. Expansion
Capacity Level 2
B. 2016
Unit Cost
C. PPI
Escalator
D. 2017
Unit Cost

1. Composting Area $28.88 1.018 $29.40

2. Clean MRF $77.88 1.018 $79.28

3. Wood Processing $25.12 1.018 $25.57

4. Source Separated
C&D Processing
$20.10 1.018 $20.46

The Unit Costs applied to the tonnage that falls within Expansion Capacity Level 2 are different from the Unit Costs applied to the tonnage that falls within Expansion Capacity Level 1.

Example 7: Inflating the Unit Cost Using PPI
The unit cost for Expansion Capacity Level 2 is inflated by the PPI using the same process described in Example 1. As noted in Example 1 above, the Unit Cost is used in calculating the Additional Payment. Begin by determining the inflation of the unit cost. For example, the Unit Costs for 2017 are calculated by escalating the Unit Costs for 2016 by the “Other Cost Index” described in Attachment A of the Contract(PPI Series WPUFD4131 Finished Goods Less Food and Energy) . In the calculation, Unit costs are rounded to two decimal places.

Example 8: Calculate the Additional Payment
To calculate the Additional Payment for Expansion Capacity Level 1, multiply the total OB Tonnage for each processing area falling within Expansion Capacity Level 1 by the calculated Unit Cost for Expansion Capacity Level 1. For example, for the Source Separated C&D Processing Area:

o Total OB Tonnage Falling Within Expansion Capacity Level 1 = 2,873 (from Table 4) o Unit Cost = $17.92 (from Table 3)
o Additional Payment from Expansion Capacity Level 1: 2,873 x $17.92 = $51,484.16

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To calculate the Additional Payment for Expansion Capacity Level 2 , multiply the total OB Tonnage within Expansion Capacity Level 2 range by the Unit Cost for Expansion Capacity Level

2. o Total OB Tonnage Exceeding Expansion Capacity Level 1 = 5,507 (from Table 4) o Unit Cost = $20.46 (from Table 6)
o Additional Payment from Expansion Capacity Level 2: 5,507 x $20.46 = $112,673.22

Sum the amounts to determine the total Additional Payment for the Source Separated C&D Processing Area:

$51,484.16 + $112,673.22 = $164,157.38

Using the example with a total processed tonnage of 126,000 Tons , the Contractor is owed $164,157.38 for the Additional Payment for the Source Separated C&D Processing Area.

This calculation would occur for each of the processing areas to determine the total payment amount due.

Over Baseline Billing Option

Rather than wait until the calendar year has concluded, once the 80% threshold has been hit for all four processing areas within a calendar year, the Contractor may start billing on a monthly basis for the processing areas where the tonnage has exceeded the corresponding baseline levels. The billing would be for the tons processed that particular month for each of the processing area that have exceeded the baseline threshold. Because the unit costs will not yet have been adjusted for the year due to PPI numbers for the year not being available until February of the next calendar year, the contractor shall use the unit cost figures used to determine the final over baseline payment for the previous calendar year.

For example: If in October 2018, all four processing areas have achieved at least 80% of baseline levels, and the compost processing area has exceeded the baseline level by 500 tons, the contractor may bill for the 500 tons multiplied by the CY 2017 unit cost.

• 500 tons x $26.85 = $13,425

Once the baseline amount for a processing area has been exceeded, the contractor then could then bill each month for the remainder of the year for the tons processed in the Composting Area for that given month. This could be done for each processing area that has exceeded the baseline tonnage level. Following the calendar year when the PPI data for that year becomes available, the unit costs will be adjusted per the process described above, and any difference will be billed to true-up the actual amount owed for the calendar year.

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