HomeMy WebLinkAbout23 SOLID WASTE BIDS 05-01-00
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Public Works / Engineering
VIA U,S. MAIL AND MESSENGER
City of Tustin
300 Centennial Way
Tustin, CA 92780
(714) 573-3150
FAX (714) 734-8991
April21,2000
Donald Shubin
Federal Disposal Service
P.O. Box 118
Santa Ana, CA 92702
Donald Shubin
Federal Disposal Service
1661 E. Palm Street
Santa Ana, CA 92702
Subject:
NOTICE OF PROPOSED DETERMINATION OF
NON-RESPONSIBILITY/HEARING BEFORE
CITY COUNCIL, MAY 1, 2000, 7:00 P.M.
300 CENTENNIAL WAY, TUSTIN, CALIFORNIA
Dear Mr. Shubin
The City of Tustin staff has completed its review of the bid submittal by Federal
Disposal Service for the City of Tustin Franchise Agreement for Integrated Solid Waste
Management Services. This letter serves as formal notice of staff's recommendation to
the City Council, on May 1, 2000, that Federal Disposal be found to be a non-
responsible bidder based on RFB Bid Evaluation criteria attached as Exhibit A, and that
Federal Disposal should not be awarded the contract.
This recommendation is based on staff's review of Federal Disposal's bid, supplemental
information provided by the bidder, personal interviews, and the opinions of experienced
City staff members and consultants (See preliminary draft of consultant report attached
as Exhibit B.). Staff has determined that Federal Disposal is not a responsible bidder
for the following reasons:
1. Federal Disposal submitted information of material nature which misrepresented
its ability to utilize its operations facility as a base of operations and the permit
status of the Company's operations facility as it relates to the services required
by the City's bid documents. This misrepresentation brought into question the
fundamental ability of Federal Disposal to provide uninterrupted service from the
start date of the contract. (See introductory letter in Federal Disposal bid
submittal and page 34 of bid submittal)
2. When given an opportunity to provide additional information regarding their
operations facility, Federal Disposal did not provide complete or adequate
information or assurances. (See City Staff letters attached as Exhibit C and April
7,2000 response packet from Federal DisposaL)
3. Federal Disposal does not now and will not possess or have access to an
adequate and functioning or fully permitted operations facility in order to service
the City by the date required in the request for bid document July 1, 2000, or in
the event of an extension of the existing contract, by October 1, 2000. (See
Federal Disposal response packet dated April 7, 2000.)
4. The City's bid document contemplates postponements to the start date of the
contract from July 1, 2000 to October 1, 2000 only for the purpose of procuring
equipment, not for land acquisition and development In any event, Federal
Disposal will not be able and ready to provide all required services for either start
date. (See page 4 of City Request for Bid document)
The bid documents require the City to notify the low bidder in writing of its determination
of non-responsibility and the reasons therefor. In accordance with the bid documents,
Federal Disposal has the right to a hearing on this issue before the City Council.
Staff has requested that the City Council conduct the hearing on May 1, 2000 at 7:00
p.m. The meeting will occur at the City of Tustin City Council Chambers at 300
Centennial Way. After accepting testimony from staff, the City's consultant,
representatives from Federal Disposal and other interested parties, staff will request the
City Council to issue a determination as to the responsibility of the low bidder. Only
then can the City Council proceed to award the contract consistent with their findings. If
the Council finds Federal Disposal not responsible, staff proposes that the City Council
adopt a resolution to that effect On the other hand, if the Council finds that Federal
Disposal is responsible, it shall award the Franchise Agreement to Federal Disposal.
If you have any questions regarding this matter, please contact the City Attorney, Lois
Jeffrey at 714-564-2607.
CI:::iJ ~
Tim D. Serlet
Public Works Director
cc:
William A. Huston. City Manager
Lois Jeffrey, City Attorney
Joe Meyers. Sr. Mgmt Analyst, Public Works
Attachments:
Exhibit A
Exhibit B
Exhibit C
Exhibit D
Bid Evaluation Criteria
Preliminary Draft of Consultant Report
City Letters to Federal Disposal
Federal Disposal Response to City Letters
Exhibit A
Bid Evaluation Criteria
SECTION V - BID EVALUATIONS
To determine whether the bid is responsive to the RFB and Franchise Agreement, the bids will be
evaluated based on criteria in "A" below. To determine whether the bidder is responsible, the
bids will be evaluated based on the criteria in "a" below. .
A.
RESPONSIVENESS
Completeness of the Bid
. Completion and submittal of all bid forms and information required in Section IV.
. Extent and nature of exceptions (exceptions to material terms.and conditions are non-
responsive; no exceptions to the Franchise Agreement are permitted).
B.
RESPONSIBILITY
Responsible bidder means a bidder who has demonstrated the attributes of trustworthiness, as
well as quality, fitness, capacity, and experience to satisfactorily perform the work required under
the RFB and Franchise Agreement. The City will look at the following:
Bidder's Experience
.
General Experience - Demonstrated experience providing similar services, including diversion
programs, to other jurisdictions. Experience of key personnel.
. Jurisdiction Satisfaction - Satisfaction of bidder references with services received, including
but not limited to, implementation, customer services, billing, payment of fees, and reporting.
.
Public Education - Bidder's public education experience and demonstrated approaches to
achieving the AB 939 diversion goals.
Technical QualificatiollS
.
Implementation Plan - Reasonableness of implementation schedule and ability to meet
deadlines (i.e., equipment procurement schedules, personnel available, and notice to
customers).
. Operations - Reasonableness of assumptions (e.g., number of routes).
. Material Processing and Marketing- Realistic plan and guaranteed capacity for recyclable
material processing, and yard waste processin~.
Financing Ability
. Financing - Evidence that financing requirements will be fulfilled.
. Financial Stability - Comparison of additional revenue from contract to company's current
revenue stream. Liquidity of bidder based on its ratio of liabilities to assets. Demonstrated
ability of bidder to obtain adequate insurance.
December 7, 1999
Page 18
City of Tustin
..
c.
AWARD
The franchise will be awarded to the lowest responsible bidder as determined by the City. Non-
responsive bids will be disqualified. The lowest bid will be based on the total rate revenue
calculated on Row 22 in Attachment 3 as "Total Projected Annual Billings."
Responsibility will be evaluated as outlined above in B. If the City determines that a bidder is not
responsible, the City shall notify the bidder in writing of the reasons for the determination and
provide the bidder with the right to request a hearing before the City Council who's decision shall
be final. The City Council may designate a hearing officer or other body to hear the appeal. If a
hearing officer or other body conducts the hearing, the officer or body shall make findings of fact
and recommend a decision to the City Council.
December 7, 1999
Page 19
City of Tus!in
Exhibit B
Preliminary Draft of Consultant Report
Preliminarv Draft
April 20, 2000
Mr. Joseph Meyers
Senior Management Analyst
Public Works Department
City of Tustin
300 Centennial Way
Tustin, California 92780
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i! USTIN FûEU::; ¡<:,e .
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Review of Bids for
Integrated Solid Waste Management Services
Dear Mr. Meyers:
We have completed our review of the bids submitted to the City of Tustin (City) in
response to the City's Request for Bids (RFB) for Integrated Solid Waste Management
Services. Bids were received from the following eight hauling companies:
. CR&R/Solag Disposal Disposal;
. Edco Disposal Corporation;
. Federal Disposal Service (Federal);
. Newco;
. Norcal;
. Taormina Industries;
. Ware Disposal Company; and,
. Waste Management (WM).
This report:
. Summarizes the rates proposed by the eight bidders;
. Identifies the lowest responsible bidder;
. Identifies the savings to the City's ratepayers based on the lowest responsible bid;
and,
. Describes the proposals submitted by the apparent low bidder, Federal Disposal,
and the lowest responsible bidder, Waste Management.
Mr. Joseph Meyers
April 20, 20oO
Page 2
Draft
PROPOSED RATES
Each bidder submitted proposed rates for residential, commercial, and roll-off box
service using Attachment 3 of the RFB. Using a standard number of customers based
on existing service levels contained in the RFB, each bidder calculated (and we verified)
the annual rate revenue that would be generated by the proposed rates. Total annual
rate revenue, from lowest to highest, is summarized in Table 1 below:
Table 1
Tcìtål Aririuål Rate 'Y"II1cre aseComp ared
ReveI1ue to Low Bid
1. Federal Disposal Service $4,224,000 --
2. Waste Management 4,703,000 11.3%
3. NORCAL 4,715,000 11.6%
4. Taormina Industries 4,750,000 12.5%
5. CR&R/Solag 4,867,000 15.2%
6. Ware Disposal Company 5,563,000 31.7%
7. Edco Disposal Corporation 6,696,000 58.5%
8. NEWCO 6,746,000 59.7%
A detailed breakdown of the proposed rate revenue by line of business for each bidder
is shown in the exhibits contained in Attachment 1. Individual calculations of the rate
revenues for each bidder are contained in Attachment 2.
LOWEST RESPONSIBLE BIDDER
City of Tustin staff and the City Attorney have determined the apparent low bidder,
Federal Disposal, is not responsible. Our complete evaluation of Federal Disposal's
proposal is contained in Attachment 3. A summary of the reasons why Federal
Disposal's proposal is not responsible is provided below:
. Federal does not have a viable permitted site to serve as a yard for its collection
vehicles, maintenance yard, and customer service facilities (refer to the City staff
report for details on the site zoning/permitting issues);
. Federal does not any experience providing solid waste collection and recycling
services to cities or counties; it does have experience providing solid waste services
Mr. Joseph Meyers
April 20, 2000
Page 3
Draft
to military bases, but the scope and complexity of the services provided and the size
of these military contracts is significantly less than that required to serve the City of
Tustin; .
. Federal has never transitioned service from another solid waste hauler for an agency
similar in size to the City of Tustin;
. Federal has never converted an agency from manual refuse collection to an
automated three-cart system for refuse, recyclables, and yard waste;
. Federal has extremely limited experience conducting public education campaigns
and preparing recycling education materials similar to those required in the City of
Tustin;
. Federal has not previously performed large-scale residential billing to individual
dwelling units and does not currently have the customer service infrastructure to
support it;
. Federal has limited financial resources, and the Tustin contract would more than
double the size of the company.
Therefore, as shown in the Table 1 on the previous page, Waste Management (WM) was
the lowest responsible bidder. Our complete evaluation of Waste Management's
proposal is contained in Attachment 4.
COMPARISON OF W ATE MANAGEMENT'S PROPOSED RATES AND ANNUAL
RATE REVENUE TO CURRENT RATES
We compared the rate revenue proposed by WM, the lowest responsible bidder, to
annual revenue at current rates. WM's proposed total rate revenue would result in
annual savings of approximately $2,112,000 to the City's residential and commercial
ratepayers (see page 1-2 of Attachment 1). Over the seven-year term of the agreement,
total savings to the ratepayers will be approximately $14.8 million compared to current
rate revenue, as savings of approximately 35%.
The proposed monthly residential rate for automated refuse, recycling, and yard waste
collection will decrease from the current amount of $12.74 per month to a new rate of
$12.25 per month, a reduction of 3.8%.
Mr. Joseph Meyers
April 20, 2000
Page 4
Draft
Proposed rates for commercial bin service will decrease significantly. On average, rates
for commercial bin service will decrease by approximately 45%, although the specific
amount of the reduction will depend on the each customer's individual service levels.
Residential and commercial rates will be fixed for the first two years of the agreement.
Thereafter, rates will be adjusted annually based on the landfill disposal gate rate at the
Orange County landfills, and changes in the Producer Price Index using the rate
adjustment formula contained in the franchise agreement.
We will be available to answer questions about our report at the City Council meeting
when this matter is considered. If you have any questions prior to the meeting, please
call me at 949/251-8628.
Very truly yours,
Laith B. Ezzet, CMC
Senior Vice President
Attachments:
1) Summary of Proposed Rates and Rate Revenues
2) Detailed Rate Revenue Calculations
3) Evaluation of Federal Disposal's Proposal
4) Evaluation of Waste Management's Proposal
L
The City of Tustin
Attachment 1
I. Total Rate Revenue
1. Federal Disposal Services $ 1,346,000 $ 2,241,000 $ 637,000 $ 4,224,000 0.0%
2. Waste Management $ 1,398,000 $ 2,560,000 $ 745,000 $ 4,703,000 11.3%
3. NORCAL $ 809,000 $ 3,315,000 $ 591,000 $ 4,715,000 11.6%
4. Taormina Industries 1$ 1,753,000 $ 2,380,000 $ 617,000 $ 4,750,000 12.5%
5. CR&RISolag Disposal $ 1,727,000 $ 2,462,000 $ 678,000 $ 4,867,000 15.2%
6. Ware Disposal Co. $ 1,496,000 $ 3,487,000 $ 580,000 $ 5,563,000 31.7%
7. Edco Disposal Corporation $ 1,606,000 $ 4,209,000 $ 881,000 $ 6,696,000 58.5%
8. NEWCO $ 1,439,000 $ 4,507,000 $ 800,000 $ 6,746,000 59.7%
Calculations based upon bids for first rate year under new contract versus current rate schedule.
Draft, 4/6/00
1-1
Hilton Farnkopf Hobson
~"-.
The City of Tustin
Attachment~
II. Comparison to Current Rate Revenues *
$ 1,346,000 1 $ 2,241,000 I $ 3,587,000 I $ (2,483,000)1 -41%
2. Waste Management 1,398,000 I $ 2,560,000 I $ 3,958,000 I $ (2,112,000)1
$ -35%
3. NORCAL
$ 809,000 $ 3,315,000 $ 4,124,000 $ (1,946,000)1 -32%
4. Taormina Industries
$ 1,753,000 $ 2,380,000 $ 4,133,000 $ (1,937,000)1 -32%
5. CR&R/Solag Disposal 1,727,000 I $ 2,462,000 I $ 4,189,000 I $ (1,881,000)1
$ -31%
6. Ware Disposal Co. 1,496,000 I $ 3,487,000 I $ 4,983,000 I $ (1,087,000)1
$ -18%
7. Edeo Disposal Corporation 1,606,000 I $ 4,209,000 I $ 5,815,000 I $ (255,000)1
$ -4%
8. NEWCO
$ 1,439,000 I $ 4,507,000 I $ 5,946,000 I $ (124,000)1 -2%
9. Current Rates I
$ 1,454,000 I $ 4,616,000 I $ 6,070,000 I $
. Excludes Roll-off
Draft, 4/6/00
1-2
Hilton Farnkopf Hobson
The City of Tustin
)
Attachme~t 1
l
.~-
III. Detailed Comparison to Current Rates by Line of Business
1. Norcal I 1. Federal Disposal Services
$ 6.74 -47% 1$ 2,241,000 I -51%
2. Federal Disposal Service 1 2. Taonnina Industries
$ 12.17 -4% 1$ 2,380,000 I -48%
3. Waste Management 1 3. CR&RISolag Dlsposat' 1$
$ 12.25 -4% , 2,462,000 I -47%
4. Current Rate I 4. Waste Management
$ 12.74 0% 1$ 2,560,000 I -45%
5. Newco I 5. NORCAL
$ 12.61 -1% 1$ 3,315,000 I -28%
6. Ware DIsposal Co. I 6. Ware Disposal 1$
$ 13.11 3% 3,487,000 I -24%
7. Edco Disposal Corporation I 7. Edco Disposal 1$
$ 14.07 10% '. 4,209,000 I -9%
8. CR&RISolag DIsposal I 8. NEWCO
$ 15.13 19% 1$ 4,507,000 I -2%
9. taonnlna Industries I 9. Current Rale Revenues
$ 15.36 21% 1$ 4,616,000 I 0%
Draft, 4/6/00
1-3
Hilton Farnkopf Hobson
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Tustin Ratè ReVmue Calculations
--;i'- FodPT31 Di'U"'sal
, ' Proposed Rates
A"".hment 2
-"
,
Comme"'¡alaod Multi-FamllvBln Rates
1
3553 $
39,95 $
44.37 $
2
63.51 $
72.35 $
81.19 $
3
9150 $
104.76 $
118,01 $
4
119,48 $
137.16 $
154,83 $,
5
147,47 $
16956 $
191.65 $
6
175,45
201.96
228,48
84 20 9 1 2
3 Cubic Yards 253 562 340 125 132 62
4 Cubic Yards 30 80 97 23 49 46
ToW 367 662 446 148 182 110
Sourc", Waste Managemen~ Inc. The Cty does not assume any responsibility for the accuracy of the reported information
116
1,474
325
1,915
Cnmmercial and Multi-FamHv Bin BHHn..
1
2,985 $ 1,270 $ 824 $ 147 $ 351 $ 5,577
10.107 40,661 35,618 17,145 22,382 12522 138,435
1,331 6,495 11,447 3561 9,391 10,510 42.735
$ 14,423 $ 48,426 $ 47,889 $ 20,706 $ 31.920 $ 23,383 $ 186,747
$ 173,076 $ 581,112 $ 574,668 $ 248,472 $ 383,040 $ 280,596 $ 2.240.964
Total Roll-Qff Box Billin
Snmma'Y nf Proleded Annual BnIlnp
19
20
21
22
Bes;dentia!, Mul"-Family, Commercial Cart/Manual Can Billings
Commercial and Mul"-Family Bin Serviœ Billings
Roll-offBoxB .
TotalPr' AnnualB' ,
Special S.m.es
:æpRoWiM: %' ¡¡¡¡lIiI-reM!!,:', "
23 Temporary Bin Services, Per Pull. plus $5 per day over 7 days : SO.OO
24 Locking Bin - Cost per bin per month 5.00
25 Bin Oeaning (in excess of one bin cleaning per year) - Each $ 35.00
26 Additional BuJky Waste Pickup (In excess of 2 per year) - Each $ 20.00
27 Addi"onaI soecW Plckun for Automated Cart Customers (in excess of 2 - -ar) - Each $ 5.00
. These mdt esfunates will be used for purposes of calcu1atmg rate revenue and
determining the proposer's overall cost 11 assumes that all sIngle family, duplex. and
triplex mdls will receive automated cart service.
-~
Failure to complete and submit this form will deem the proposer's bId non-responsIve.
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Tustin Ràie ReVenue Calc:ulations
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Proposed Rate.
Attarhment 2
12.25
108,336
$ 1.397.964
Total Cartlcan Billin
Comm.ni,I,nd Mnl6-F,mHvBin R,Ies
~ 1 2 3 4 5 6
4 $ 40,00 $ 60.00 $ SO,OO $ 100,00 $ :~:I~ 140,00
5 3 CubicYuds $ 58,50 $ 90,00 $ 116,00 $ 145,00 $ 230,00
6 4 Cubic Yards $ 65,00 $ 92,00 $ 125,00 $ 155,00 $ 195,00 $ 235,00
2 84 20 9 1 2
3 Cubic Yuds 253 562 340 125 132 62
4 Cubic Yuds 30 SO 97 23 49 46
ToW 367 662 446 148 182 110
Source, W..te MaIlilgement. lnc. The Gty does not...ume any responsibility for the "curacy of the reported information
C'nmm.ni,1 ,nd Mnlti-F,mHy Bin Bimnp
1
3,360 $
14,SOl
l,9SO
$ 20.111 $
$ 241.332 $
2
J,200 $
SO,580
7,360
59,140 $
709,680 $
72JJ $
39,440
12.125
52.285 $
627,420 $
120 $
18,125 25,080
3.565 9,555
21,690 $ 34,755 $
260.280 $ 417,060 $
ToW Roll-Off Box Billin
Snmm," of Proi"",.d Annn,l Billinp
19
20
21
22
Res;dentW, Multi-Fomily, CommercW Cart/Manual Can Billings
Commercial and Multi-Fomily Bin Service Billings
Roll-Off Box Billin
ToW 'ectedAnnualBillin
Sppn,l Services
'RoW>#!! 'fu)J$h"¥:W:~&_,ii¡¡¡¡iXi!%."'-- " ~_*iì'Xiit1W,¡¡1X¡t:W!')f_:¡¡èÄ-¡¡
23 Temponry BinServiœs - Per Pu1l. plus 55 per day over 7 days
24 Locking Bin. Cost per bin per month
25 Bin Oeaning (in excess of one bin cleaning per year) - Each
26 Additional Bulky W..te Pickup (in excess of 2 per year) - Each
27 Additiona1 'Picku for Automated Cart Customers (in excess of 2
ear)-Each
5,00
35.00
20,00
5.00
. These unit estimates will be used for pmposes of calculating rate revenue and
detemUning the proposer's overall cost It assumes that all sing1e fami1y. duplex. and
triplex units will receive ,utomated cut service,
J
Failure to complete and submit this form will deem the propose~s bid non-responsive.
4/6/00. "'27 PM
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T.;s;;;; Rale R.v.nu~'~cuÍ.ti~ns
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, , '. 'Proposed Rale.
Attachment 2
99,228
808,788
1
39.87 $
53.30 $
60.67 $
3
111.12 $
148.20 $
169.00 $
4
142.83 $
187,20 $
221.87 $
5
176.37 $
224.25 $
268,67 $
6
296.20
393.90
520,00
76,'2:7 $
104.00 $
117.87 $
84 20 9 1 2
3 Cubic Yards 253 562 340 125 132 62
4 Cubic Yards 30 80 97 23 49 46
Total 367 662 446 148 182 110
Source, Waste Management Ine, The Oty does not as"""e any responsibility for the accuracy of the reported information
Cnmmercial and Multi-'om;].B!n BIII!n",
1 2 3
3.349 $ 1.525 $ 1,000 $ 176 $ 592 $
13,485 5M48 50,388 23,400 29.601 24,422
1.820 9.430 16.393 5,103 13,165 23,920
$ 18,654 $ 69,403 $ 67,781 $ 28.503 $ 42,942 $ 48,934 $
$ 223.848 $ 832,836 $ 813.372 $ 342',tJ36 $ 515.304 $ 587,208 $
Total RolI-Dff Box Billin
Summarv of Pmlected Annual Blllln..
SF""o' Semr..
¥%~...¡¡¥ @:ffi¡@-,I!¡~;i¡!W~--¡¡¡¡¡¡¡¡O..~$\¡¡¡~*, _mw
23 Temporary Bin Serviœs - Per Pull, plus $S per day over 7 days $ 50.00
24 Loddng Bin - Cost per bin per mon'" $ 5,00
25 Bin Oeaning (in eXcess of one bin dearnng per year) - Each $ 35,00
26 Adclitional Bulky Waste Pickup (in excess of 2 per year) - Each $ 20.00
27 Adclitional """""" Pickun for Automated Cart Customers (in excess of 2 ~ ~..) . Each $ 5.00
. These UJÙI estimates will be used for puzposes of calculating rate revenue and
determining the proposer's overall cost It assumes that all single family, duplex, and
triplex UJÙts will receive automated cart service,
)
J
Failure to campi'" and submit this form will deem the proposer's bid non-responsIve.
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, " :: ;usÍiÌ1 ~!e Reven~e CalculatiD~
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, . Proposed Rates
, ",
f'nmm..-cial and Mul6-Familv Bin Rates
79,00 $
89,00 $
99,00 $
3
101.00 $
101.00 $
116,00 $
4
114.00 $
114.00 $
134.00 $
1
59,00 $
79,00 $
84,00 $
84 20 9 I 2
3 Cubk Yards 253 562 340 125 132 62
4 Cubk Yards .30 80 97 23 49 46
- E ~ ~ ~ m ill
Source, Waste Management, Jnc, The Oty does not assume "'y responsibility 1m the accuracy of the ÆpOrted Wormanon
Cnmmmialand Mul6-FamilvBin Bmin",
'W
Attachment 2
1,474
325
1,915
1 2
4,956 $ 1,580 $ 909 $ 138 $ 360
19,987 SO,0I8 34,340 14,250 18,216 11.160
2,520 7.920 11.252 3,082 7,987 9,660
$ 27,463 $ 59,518 $ 46,501 $ 17.332 $ 26,341 $ 21,180 $
$ 329,556 $ 714,216 $ 558,012 $ 207,984 $ 316.092 $ 254.160 $
Total RoU.Qff Box Bmin
Snmma~ nf Pmi.".d A nnnal Bmin..
19
20
21
22
Residential, Muln-Family, Conunercia1 Cart/ManuaJ Can Billings
couunercW and Multi-Family BJn Service BiI1ings
Roll-OffBox Billin
Total' AnnuaJ B '
S....nal Semces
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23 Temporary Bm Serviœs - Per Pull. plus $5 per day over 7 days
24 LocIdng Bm - Cost per bm per monlll
25 Bm CleanJng (m excess of one bút cleaning per year) . Each
26 Additional Bulky Waste Pickup (mexcess of 2 pet year) . Each
27 Additional' Pi for Automated Cart Custome<S (m excess of 2
ear)-Each
. These unit estimates will be used for pwposes of caJculating rate revenue and
detennh1Jng the proposer's overall cost, It assumes that all singielamlly, duplex. and
triplex units will receive automated cart service.
5,00
35.00
20.00
5,00
i
~I
Failure to complete and submit this form will deem lIle propo..~s bid non-responsive.
4/6,{)(J,I57PM
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Atta<hment 2
Tob! CartlCan 8illin
133.812
$ 1,726,632
Comm.".¡.1 .nd M"I"-F.milv Bin R.t..
1
60,17 $
70.17 $
SO,17 $
2
7657 $
9157 $
10657 $
3
92.14 $
107.71 $
132.14 $
6
135,42
169,42
203,42
YM 84 20 9 1 2
3 Cubic YMds 253 562 340 125 132 62
4 CubicYMds 30 80 97 23 49 46
- - W W ~ m ill
Source, W..te Monagement Inc, The Oty does not ..sume any responsibility for the .ccuracy of the reported information
Cnmm.".¡.I.nd Mu16.F.ml1vBin BnJin..
1
5,054 $
17,753
2,405
$ 25,212 $
$ 302,544 $
1.531 $
51,462
8,526
61,519 $
738,228 $
Summ.~ nf-i.....d Ann".1 Bimn"
S"...;.I S.,..;"",
120 $ 271 $
16,035 19,648 10.504
3,502 8,715 9;357
19,537 $ 28,483 $ 20,132 $
234.444 $ 341,796 $ 241,584 $
qq1lQw' , ¡,__IIIíII!!lIilii!ililillIAJilliiMiiW!!@Q_ÆIiIi@iW!!
23 Temporary Bin Services - Per Pull, plus $5 per day over 7 days $ 50.00
24 Locking Bin - Cost per bin per month $ 5,00
25 Bin -cleaning (in excess of one bin cleaning per yeM> - Each $ 35,00
26 :r~::::: =~~:==~:=:: ~~..;;:~ ~excess of 2 per veM) - Each $ 20,00
'}:J $ 5.00
. These unit estimates will be used fa< pmposes of ca1c:uJating rate revenue arui
determining the proposer's overall cosc It ossumes that ill single famliy, duplex, arui
triplex units will receive automated cart service.
ì
...../
Failure to complete and submit this Iono will deem the proposer" bid non- upo..i...
4I6ft)O. 2-00 PM
2-5
,o"A_'
, ~~'~i5)~îJtr~~
Attarhment 2
~
i
'" )
i
-./
Comm.n,;.! aod Multi-'am;!. Bin Ra...
1
50.04 $
62,15 $
77.15 $
116.66 $
162.87 $
182.87 $
4
147.82 $
212.68 $
232.88 $
5
178,71 $
26330 $
284.60 $
6
210.71
312,76
336.76
85.26 $
11630 $
136.50 $
84 20 9 1 2
3 Cubic Yards 253 562 340 125 132 62
4 Cubic Yards 30 80 97 23 49 46
~ - - W ~ ~ ill
Source, Waste Management, In~ The City does not assume any responsibility for the accuracy of the reported information
C.omme..,¡aI and Multi-'amil.Bin Bminp
1
4,203 $ 1,705 $ 1,050 $ 179 $ 421
15,724 65,361 55,376 26,585 34,756 19,391
2,315 10,920 17,738 5,356 13,945 15,491
$ 22,242 $ 77.986 $ 74,l64 $ 31,941 $ 48,880 $ 35303 $
$ 266.904 $ 935,832 $ 889.968 $ 383,292 $ 586,560 $ 423,636 $
Summary of Pn¡j.....d Annual Bmln..
Special 5onñ....
23
24
25
26
27
Temporary Bin Services - Per Pull, plus $5 per day aver 7 days
Loddng Bin - Cost per bin per month
Bin 0eanIng (in exœss of one bin cleaning per year) - Each
Additional Bulky Waste Pickup (In exœss of 2 per year) - Each
Additional S ' Picl<u for Automated Cart Customers (In exœss of 2
)-Each
5,00
35,00
20,00
5.00
. These unit .,ama'" will be used for purposes of cakulatlng rate revenue and
determining the proposer's averall cost, It assumes that all sing1e family, duplex, and
triplex units will receive automated cart servIœ.
Failure to complete and submit this form will doom the proposers bid noo-respoos;.e.
4/6AXJ,2-OOPM
2';;
FUcA""""""'"
',' '.-" ~ ;-,C
'~'{~f.f~1:,~~Ë~)7;;'~.r-
124,440
Total CartlCan Billin
. 1,605.672
"ommom,' ,nd M..,ti-F,mily BIn R,...
3
154.69 $
206.25 $
257,81 $
4
164,44 $
219.25 $
274,06 $
5
174.19 $
232.25 $
290.31 $
6
183,94
245.25
306.5£
1
72.38 $
96.50 $
120.63 $
2
123.75 $
165.00 $
206.25 $
2uIC 84 20 9 I 2
3Cubl<Yards 253 562 340 125 132 62
4 Cubl< Yards 30 80 97 23 49 46
Total 367 662 446 148 182 110
So1n-= W.... Management. Jnc. The Diy does not assume any responsiliilily for tho ,ecuracy of the reported infonnation
('nmm.m" ,nd M..lti-F,milv BIn BI1IInl>'
1 2 3
6.080 $ 2,475 $ 1,392 $ 174 $ 368
24,415 92,730 70,125 27,406 30,657 15.206
3,619 16.soo 25,008 6,303 14.225 14,102
$ 34,!14 $ 111.705 $ 96.525 $ 33,709 $ 45,056 $ 29,676 $
$ 4D9,368 $ 1,340.460 $ 1,158.soo $ 404.508 $ 540,672 $ 356,IU $
S..mm"" of Pml......d Ann.." Billlnl>'
SDP<i,] SomePS
23 Temponry Bin Services - Per Pu1l, plus $5 per day over 7 days $ 50,00
24 Locking Bin - Cost per bin per month $ 5.00
25 Bin Cleaning (in exœss of one bin cleaning per year) - Each $ 35.00
26 Additional Bulky W.... Pickup (in exœss of 2 per year) - Each $ 20,00
27 AdditionalS';;"'¡'" PiclruD for Automated Cart Customers (in exœss of 2 ~ -~,\ - Each $ 5,00
. These unit estimates will be used for pwposes of calculating "'.. revenue aM
doterD:lirnng the proposer's over.Jl cost. It """"""" that ail single family, duplex. aM
triplex units will receive automated cart service.
Attachment 2
116
1,474
325
1,915
~
Fail.,. to complete and sub,.;t tbis Eo"" will deem the proposer's bid non-responsive.
4/6/00. 2<0 PM
2-7
EO< AI-' 2
',)
Tustin Rate Revenue c.Jc:uIations
'zwm
Proposed Rales
Comm",.;al and Multi-FamHv BIn Rat...
3
146,91 $
208,88 $
248.67 $
4
196.05 $
260.09 $
315.89 $
5
234,46 $
324,11 $
392.09 $
63,93 $
89.34 $
107,48 $
106.28 $
14956 $
177.01 $
Attacltmenl2
6
272.30
384,48
461.58
84 20 9 1 2
3 Cubic Yuds 253 562 340 125 132 62
4 Cubic Yuds 30 80 97 23 49 46
ToW 367 662 446 148 182 110
Sour"" W..te Management Ù1C, The Oty does not ..sume any responsibility for the ac=cy of the reported Information
('"mm",.;al and Multi-FamHv BIn mlllnv
1 3
5.370 $ 2,126 $ 1.322 $ 234 $
22.603 84,053 71.019 32.511 42,783
3.224 14,161 24,121 7.265 19.212
$ 31.197 $ 100,340 $ 96.462 $ 39,776 $ 62,229 $
$ 374,364 $ 1.204,080 $ 1,157.544 $ 477.312 $ 746,748 $
Summarv of P",I"",,d Annual Bllllnv
Soodal S.rv;...
#%1,- . .
23 Temporary Bin - - Per Pull. plus $5 per day over 7 days $ 50.00
24 Locldng Bin - Ceo' per bin per month. $ 5.00
25 Bin CJeaning (in exœss of one bin cleaI1ing per year) - Each $ 35.00
26 ~~:= ~~~:~~:= ~~1':~ ~:excess of2 DOC vear) - Each $ 20.00
'1J $ 5,00
. These unit ..lUnates will be used for purposes of ca1cuJafulg rate revenue and
d.-uning the proposer's overall c:œt 11 assumes that aU singlelamUy, duplex, and
triplex units will receive automated - seIVÍce.
.)
FaUnce 10 compl.te and submit this form will deem tho proposer's bId non-responsive.
4I6JtJO,2~!PM
2-8
F",_t2
ATTACHMENT 3
FEDERAL DISPOSAL SERVICE
The attachment describes Federal Disposal Service and the services it proposed.
Description of Federal Disposal Service and its Experience
Federal Disposal Service is a d.b.a. of Shubin Services, Inc. This company was
incorporated in 1986 and is wholly owned by its President, Donald B. Shubin. Federal
is a small, local waste hauling company with its yard in Santa Ana.
The vast majority of Federal's current operations is construction and demolition waste
hauling. Federal's residential solid waste collection service experience has been
exclusively military facility contracts, through which Federal has provided three cart
collection service along with commercial, roll-off, and special events solid waste
collection. Currently Federal's only residential waste hauling operations are performed
for the Marine Corp Air Ground Combat Center in Twenty-nine Palms, California.
Providing service at military bases is very different than servicing cities, as the services
provided, base housing, terrain, geographic conditions and waste generation
characteristics tend to be much more homogeneous than the varying conditions found
throughout a large municipality.
References
We contacted references at:
. Vandenburg Air Force Base, where Federal provided residential and commercial
service (population 12,000);
. The Marine Corps stations at EI Toro and Tustin (population 10,000 to 15,000),
where Federal provided residential and commercial service; and,
. Twenty-nine Palms Marine Corps Station (population 8,000 to 10,000), where
Federal provided residential service.
All the above references were satisfied with Federal's performance and stated that they
received few complaints about the service and that Federal was easy to work with.
Summary of Collection Services Proposed by Federal Disposal Service
Single Family Refuse Collection
Federal has proposed to provide three cart automated service to all single family
dwelling units where it is operationally feasible. Federal has provided three cart
automated collection service on a smaller scale at Vandenburg Air Force Base, where
references considered the Company's quality of service excellent.
Federal intends to deliver three automated carts for the collection of refuse, recyclables,
and yard waste to all single family customers. Customers shall have the choice of 96, 65
Draft, 4/20/00
Page 3-1
ATTACHMENT 3
FEDERAL DISPOSAL SERVICE
The attachment describes Federal Disposal Service and the services it proposed.
Description of Federal Disposal Service and its Experience
Federal Disposal Service is a d.b.a. of Shubin Services, Inc. This company was
incorporated in 1986 and is wholly owned by its President, Donald B. Shubin. Federal
is a small, local waste hauling company with its yard in Santa Ana.
The vast majority of Federal's current operations is construction and demolition waste
hauling. Federal's residential solid waste collection service experience has been
exclusively military facility contracts, through which Federal has provided three cart
collection service along with commercial, roll-off, and special events solid waste
collection. Currently Federal's only residential waste hauling operations are performed
for the Marine Corp Air Ground Combat Center in Twenty-nine Palms, California.
Providing service at military bases is very different than servicing cities, as the services
provided, base housing, terrain, geographic conditions and waste generation
characteristics tend to be much more homogeneous than the varying conditions found
throughout a large municipality.
References
We contacted references at:
. Vandenburg Air Force Base, where Federal provided residential and commercial
service (population 12,000);
. The Marine Corps stations at El Taro and Tustin (population 10,000 to 15,000),
where Federal provided residential and commercial service; and,
. Twenty-nine Palms Marine Corps Station (population 8,000 to 10,000), where
Federal provided residential service.
All the above references were satisfied with Federal's performance and stated that they
received few complaints about the service and that Federal was easy to work with.
Summary of Collection Services Proposed by Federal Disposal Service
Single Family Refuse Collection
Federal has proposed to provide three cart automated service to all single family
dwelling units where it is operationally feasible. Federal has provided three cart
automated collection service on a smaller scale at Vandenburg Air Force Base, where
references considered the Company's quality of service excellent.
Federal intends to deliver three automated carts for the collection of refuse, recyclables,
and yard waste to all single family customers. Customers shall have the choice of 96, 65
Draft,4/20/00
Page 3-1
or 32-gallon refuse carts. The contract also permits customers to obtain additional
refuse carts for $4.00 per month. Federal will provide cart deliveries and exchanges
within 3 days of the request.
Federal will operate two automated refuse vehicles Monday through Friday.
Where automated collection is not operationally feasible, Federal will collect refuse
manually. Collection days will be Monday through Friday. Manual collection routes
will be non-dedicated routes.
Single Family Recycling Coliection
Single family automated recycling collection shall be on the same day of the week as
refuse collection. Only areas receiving automated service will receive recycling
collection. Customers will have the option of 96 or 64-gallon recycling carts, and
additional recycling carts are available free of charge to customers who regularly fill
their recycling cart.
The recycling collection trucks will be painted to distinguish them from the refuse
collection vehicle, and will also bear a promotional recycling sign. Federal will perform
collection using one truck route Monday through Friday, with a special multi-function
truck also available one or two hours per day for recycling collection.
Single Family Yard Waste Collection
Single-family automated yard waste collection shall be on the same day of the week as
refuse and recyclables collection. Customers may choose from a 96 or 64-gallon yard
waste cart. The contract requires that free additional yard waste carts be made available
to those customers who regularly fill their yard waste cart. Tied bundles will also be
collected.
The yard waste will be collected using one truck route Monday through Friday. The
yard waste collection trucks will be painted to promote yard waste recycling.
Multi-Family and Commercial Refuse Collection
Federal will supply and distribute all new 2, 3, and 4 cubic yard bins for commercial
and multi-family refuse collection. Locking mechanisms on container lids will be
available to customers upon request. Watertight containers with drain plugs will be
distributed to wet food customers.
Small volume commercial and industrial customers and multi-family customers may
request automated three cart service, or continue to receive manual refuse collection
service. Federal will run 4.5 truck routes Monday through Saturday.
Multi-family and commercial refuse customers whose waste has a high recyclable
content will be placed on the same collection route, and the collected refuse shall be sent
to a Material Recovery Facility (uMRFU) to have recyclables separated out prior to
landfilling. Customers with low levels of recyclables in their waste stream will have
Draft,4/20/00
Page 3-2
their waste collected on separate routes. This waste will be sent directly to a landfill. If
necessary to reach the 50% diversion goal, the Company will need to change this
procedure and send all waste collected from bin customers not participating in a
recycling program to a MRF for processing prior to landfilling.
Multi-Family and Commercial Recydables Collection
Federal will develop a commercial recyclable paper collection route, and provide on-
eall pick-up for paper drives. Commingled recyclables shall be collected by bin or cart
for no additional charge to the customers. Federal will run 1.5 routes in the City
Monday through Friday. The vehicles used on these routes will be painted to
distinguish them from the refuse collection vehicles.
Roll-off recyclables loads high in recyclable content will be sent to a MRF. Customers
with clean dirt, concrete, asphalt, or redbrick materials will be encouraged to separate
recyclable materials.
Multi-Fami/y and Commercial Yard Waste Collection
Automated yard waste collection, using 96 or 64-gallon carts, shall be available at no
charge to multi-family and commercial customers. Bin collection of yard waste shall be
offered at standard refuse collection charges.
Federal's Operating. Processing. and Disposal Facilities
Operatinf Yard/Offtces
In its initial proposal, Federal stated that vehicle staging, maintenance, dispatch,
customer service, billing, public relations, and franchise administration activities would
take place at Federal's facility located at 1661 East Palm Street in Anaheim. Federal's
President, Don Shubin, and two members of the management team reportedly owned
the facility.
The facility is not configured adequately to accommodate customer service. Federal has
proposed to add signs and pavement paint to assist customers in locating the office.
During the proposal review process, we became aware that the proposed intensified use
of the Santa Ana facility to accommodate the Tustin operations would require several
discretionary actions which must be reviewed and approved by the Santa Ana Planning
Commission and City Council. According to a letter from the City of Santa Ana dated
April 6, 2000, these include amending the General Plan from Low Density Residential to
Industrial and the zoning designation from Light Industrial to Heavy Industrial. The
required changes could affect the Company's ability to implement service by the
October 1, 2000 service start date.
Federal has obtained a lease, contingent upon the award of the Tustin agreement, for
properties at 1430 and 1S02 North Poinsettia Street, from which it now intends to
service Tustin. Based on a letter from the City of Santa Ana to Federal dated AprilS,
Draft, 4/20/00
Page 3-3
2000, zoning does not appear to be an issue. However, a lot line adjustment is required
and the necessary review process will take approximately 10 weeks. Additionally, a
conditional use permit is required prior to Federal installing an above ground tank as
planned. This could take approximately three months.
Federal's cost worksheet submitted with its initial bid did not take into account leasing
and making improvements on these properties. Based on "best guess" estimates
contained in Federal's response to the City dated April 7, 2000, estimated improvements
to the subject properties would cost approximately $311,000.
Recyclable Processini{ Facilities
Commingled recyclables, and high-content recyclable character refuse will be delivered
to either CR Transfer in Stanton, or CVT in Anaheim. Both facilities provided letters
with proposed rates and terms and stated that capacity was available. Subsequent
discussions with Federal indicated that CR Transfer is the preferred facility.
Yard Waste Processin¥ Facilities
Federal will deliver yard waste collected in route trucks to the Tierra Verde Industries
green waste processing facility, located in the unincorporated area near Irvine, for
$22.00 per ton.
Disvosal Site
Residential refuse, and refuse collected from commercial/industrial customers that
have a functioning source separated recycling service and are of low recyclable
characteristics, will be direct hauled to Orange County's Bowerman Landfill.
Implementation Plan
While Federal provided automated residential collection to military, it has never
implemented new services on the scale required in Tustin. The City should be prepared
for transition problems associated with changing collection days, converting to
automated collection, and transitioning to a new service provider.
Customer Service and Billin¥
Federal will need to establish customer lists. There is bound to be confusion and
possibly some customers missed initially due to developing such a list from scratch.
However, any new hauler would be faced with this problem and the Company is
already working on a commercial account database.
The Company is looking at billing systems to be used in Tustin. There is no current
system in place to handle required billing. There may be problems to work out with the
new system, once it is established.
Draft, 4/20/00
Page 3-4
Implementation of Automated Collection
In its proposal, Federal stated that it intends to initiate automated cart service Citywide
at the start of the contract term, beginning distribution and servicing of the carts up to
two weeks prior to the October 1,2000 start date. Collections prior to the franchise,
commencement date will be provided free of charge.
Distributing carts and phasing in automated service over a two week period, as Federal
has proposed, would be very difficult to coordinate and could lead to more transition
problems than a longer phase in period would. During Federal's interview, it proposed
an alternative implementation strategy that we believe is better than the one in its
proposal.
Federal's alternative proposal would be to phase in automated service over the first 180
days of the contract. No conversions would take place during the first 60 days to allow
the Company more time to focus on commercial services. Approximately 60 days after
service initiation, the first 25% of the City would be converted to automated service,
and each 30 days thereafter another 25% of the City would be converted. Federal will
attach a 300-gallon cart to the flipping arm of their automated collection vehicles in
order to facilitate manual collection prior to conversions. A second crew member will
be added to the vehicles on manual routes. One person will empty the customer's cans
into the 300-gallon cart and the other will drive and flip the contents of the cart into the
body of the truck, using the automated flipping arm, when the cart is full.
Federal's experience in initiating new automated service consists of adding automated
recycling carts and service to established automated refuse service at Vandenburg Air
Force Base in 1992. Federal did assemble and distribute the new recycling carts itself.
The cart manufacturer shall assemble Tustin's carts.
Bin Service
Federal has proposed to collect Waste Management's bins when it delivers its own
containers. This would ensure that customers are never without bins and this method
would likely require a lower level of coordination between the incoming and outgoing
haulers. Waste Management would have to be willing to work with Federal on this
matter and allow Federal to move its bins, but this would likely save Waste
Management time. Federal's experience has primarily been servicing commercial and
industrial customers and therefore should be capable of the procedure.
Labor Demand
Federal will have a temporary increase in its need for drivers in Tustin during the
transition. The Company intends to temporarily cease certain operations and shift
drivers from other operations to assist during this period. Due to the type of business
Federal typically conducts, construction and other temporary services, this may be
possible. Federal indicated that even drivers used only during the transition would
have the necessary experience. Federal will likely use the drivers with experience
collecting at the closed military bases.
Draft,4/20/00
Page 3-5
Public Information. Education. and Recycling Promotion
Servicing Tustin requires ongoing public education, including contact with all
customers by mail, contacting multi-family and commercial customers and HONs in
person periodically, and presenting programs at City events. Federal has limited
experience in public education. According to references at military bases serviced by
Federal, the base housing office handles most of the notification and service issues with
the individual service recipient. The company has provided samples of flyers used at
Vandenburg, however these were not as high quality as those required for the City of
Tustin.
Federal intends to use an outside advertising agency, TH&M, in order to produce
public education materials, a web site, and a video to meet public education
requirements. Provided that the City closely guides Federal in these matters, and that
Federal uses a competent outside production company for all materials, the City should
receive the public education materials required. Federal is establishing a web site,
which may assist in disseminating information to the public.
Presentations and booths at events are areas in which Federal appears to lack significant
experience and has not directly addressed how they will be handled.
Customer Service
Federal has identified a new customer service representative it plans to hire to be in
charge of handling the City's needs as well as additional office staff. The Company also
is dedicating new phone lines and an 800 number for Tustin customers. However, a far
greater volume of calls and service requests will come in during the transition than
during the remainder of the contract. Federal has identified three current employees it
intends to have assist in customer service during the transition, along with the new
representative and two new hires. As a small company, Federal does not have staff to
temporarily re-assign from another city's service desk to service Tustin, and may not be
able to spare these three reassigned employees from their dispatching and other posts.
AB 939 Reporting and Diversion Requirements
Federal had no experience with AB 939 reporting, but is hiring an experienced
consultant to handle AB 939 issues. Federal has the consultant on retainer for only 8
hours per month, with an hourly rate for additional hours. In order to meet all
reporting requirements and diversion goals, the Company will require this consultant
to work additional hours. At Federal's interview, the consultant assured the City that
he could work additional hours as needed.
Financial Resources and Stability
Federal has provided financing commitment letters from financial institutions and
Volvo, indicating that financing for the required new vehicles and containers will be
available.
Draft,4/20/00
Page 3-6
Federal has submitted reviewed financial statements for the nine-month period ending
December 31, 1999.
For the 9 months ended December 31,1999, Federal's annualized revenues were
approximately $4.7 million. This time period includes revenues from both now closed
military bases and a large new construction waste customer. The Tustin contract would
represent an 89% increase in Federal's current annual revenues. Financial institutions
have already determined that Federal's financial condition is satisfactory enough to
confirm financing.
Based on Federal's submitted financial statements, we calculated the following ratios
for the nine months ended January 31,1999 that indicate the Company's current and
longer-term ability to meet financial obligations. All ratios were consistent with
industry averages:
Current assets to current liabilities
Total liabilities as a percentage of total assets
Pre-tax profit margin as a percent of revenue
1.3
70%
4%
Information Regarding Past and Pending Litigation
Federal stated in its proposal that:
. There are no civil actions with government agencies now pending or which have
occurred in the past 10 years; and,
. There are no criminal legal actions now pending or that have occurred in the past 10
years against any key personnel described in the proposal, Federal, or any affiliated
company.
Draft,4/20/00
Page 3-7
ATTACHMENT 4
EVALUATION OF WASTE MANAGEMENT'S PROPOSAL
The attachment describes Waste Management and the services it proposed.
Company Description
Waste Management is the largest solid waste company in the nation and has a strong
local presence as well. Waste Management is the current service provider for the City
of Tustin as well as many other cities in Orange County, including Orange, Irvine, Santa
Ana, Lake Forest, Laguna Beach, La Habra, Rancho Santa Margarita and Mission Viejo.
The City of Tustin is serviced from WM's local office located at 1800 South Grand
Avenue, Santa Ana, California 92705.
References
WM's most important reference is the City of Tustin, and the City has expressed
satisfaction with WM's service. WM's most recent service transition experience is in the
city of Orange, where WM purchased Orange Disposal, a small privately-held company
that had the franchise agreement, and then converted the all residential customers from
manual refuse collection to a three cart automated collection system. After initially
experiencing expected transition challenges during the roll-out, the programs are now
in place and appear to be working well.
Summary of Collection Services Proposed by Waste Management
Sinrle Family Refuse Collection
As required by the RFB, WM has proposed to provide three cart automated service to
all single family dwelling units where it is operationally feasible. WM intends to
deliver three automated carts for the collection of refuse, recyclables, and yard waste to
all single family customers. Customers shall have the choice of 96, 65 or 32-gallon
refuse carts. The contract also permits customers to obtain additional refuse carts for
$4.00 per month, billed semi-annually by WM. Carts may also be exchanged once
during the implementation and once annually thereafter at no charge.
Refuse will be collected two days per week, with approximately 1,100 homes collected
on each route each day. These refuse routes will collect between 19 and 22 tons per day.
The contract requires that refuse, recyclables, and yard waste collection all occur on the
same collection day for individual customers.
Where automated collection is not operationally feasible, WM will collect refuse
manually.
Single Family Recyclinr Collection
WM will provide automated refuse collection customers with automàted recycling
service. Customers will have the option of 96 or 64-gallon recycling carts, and
Page 4-1
additional recycling carts are available free of charge to customers who regularly fill
their recycling cart.
Sinrle Family Yard Waste Collection
WM will provide automated refuse collection customers with automated yard waste
service. Customers may choose from a 96 or 64-gallon yard waste cart. The contract
requires that free additional yard waste carts be made available to those customers who
regularly fill their yard waste cart. Tied bundles will also be collected.
Multi-Family and Commercial Refuse Collection
WM will offer two, three, and four cubic yard bins for commercial and multi-family
refuse collection. WM maintains a large inventory of bins at WM's Santa Ana yard,
where bins will be repaired and cleaned.
Multi-family customers and small volume commercial and industrial customers may
request automated three cart service, or continue to receive manual refuse collection
service.
For multi-family customers with curbside collection where automated service is not
operationally feasible, WM will collect refuse manually.
Multi-Family and Commercial Recydables Collection
WM will provide both bins and carts to multi-family customers for the collection of
recyclables. WM management offers to visit and survey commercial customers and
supply bins and 96-gallon carts as needed. The contract requires that these services be
offered at no additional cost.
Multi-Family and Commercial Yard Waste Collection
Automated yard waste collection, using 96 or 64-gallon carts, shall be offered to all
multi-family and commercial customers at no additional charge. Additionally, yard
waste bins shall be made available to those customers that require them.
City Facilities Collection
WM offered to provide refuse collection service for City facilities plus a 40-cubic yard
roll-off box for green waste at the City yard for no additional charge, even though the
RFB did not require that such services be provided at no additional charge.
Waste Management's Operating. Processing. and Disposal Facilities
Operatinr Yard/Offices
Maintenance will be performed and equipment will be stored at WM's yard located at
1800 S. Grand Ave., Santa Ana.
Draft, 4/20/00
Page 4-2
Recyclable Processing Facilities
Recyclables will be delivered to Sunset Environmental, WM's material recovery facility
in Irvine. WM guarantees capacity for all Tustin recyclables delivered at its own facility
through the term of the contract. From Sunset Environmental, recyclables will be '
transported to Potential Industries, Inc. in Wilmington. WM's contract with Potential is
effective for five (5) years with three (3) one-year options. WM does not pay Potential a
tipping fee and the contract does not provide for a rate increase.
Yard Waste Processing Facilities
WM will deliver yard waste to the Tierra Verde Industries green waste processing
facility, located in the unincorporated area near Irvine. According to WM's bid, Tierra
Verde has guaranteed Waste Management of Orange County capacity for Tustin yard
waste for the duration of the contract at $22.00 per ton. There is no provision in the
agreement for rate increases.
Disposal Site
Residential refuse, and refuse collected from commercial/industrial customers that
have a functioning source separated recycling service will be taken to either the Frank
Bowerman landfill or to WM's Sunset Environmental transfer station.
Mixed waste processing will occur at Sunset Environmental. Waste Management will
guarantee a minimum diversion of 15% from the mixed waste processing of waste from
multi-family, commercial and industrial customer's who do not participate in the
separate recycling program.
Implementation Plan
WM indicates a desire for a July I, 2000 start date for the Agreement. This time
schedule was based on several tasks beginning in April. Therefore, WM's schedule of
implementation could be delayed if a contract is not approved before May 2000, but
implementation should still be achievable before the required October 1,2000 start date.
Customer Service and Billing
WM services several other Orange County cities out of the same office. As staff at this
office has assisted other cities' customers through the implementation of automated
service, the staff is already knowledgeable about service needs. Therefore, WM should
be able to respond to the temporary increase in calls expected from the transition to
automated service with the existing labor pool. WM is already billing commercial and
industrial customers. Residential customers are currently, and will continue to be,
billed by the City.
Implementation of Automated Collection
WM's proposal states that it has changed over 77,000 residential customers throughout
Orange County from manual to automated refuse collection during 1999 alone. WM's
Draft,4/20/00
Page 4-3
plans to begin delivery of carts no later than October 1, 2000 and to complete the
transition by January 1, 2001.
Bin Service
WM will primarily need to focus on distributing recycling bins and adjusting service
levels based on its sales visits and service requests, as WM's refuse bins are already in
place.
Public Information, Education, and Recycling Promotion
WM will provide an initial mailer explaining new services, quarterly and annual
mailers to keep customers updated on services, corrective action notices for improper
use of services, an educational video, and public outreach, as required by the contract.
WM will also distribute a "how-to" brochure along with the automated carts, and a
special mailing to commercial customers explaining late fees and special service charges
and encouraging recycling. WM included samples of public education materials used
in the city of Orange and in the unincorporated areas of Orange County that were of the
quality required for the City of Tustin.
Customer Service
WM's Santa Ana office is open from 8:00 AM to 5:00 PM, Monday through Friday, and
8:00 AM to 12:00 PM on Saturday. WM has forty customer service representatives and
administrative personnel available during the week to service all Orange County
customers. As WM provides automated collection to five other Orange County cities
and surrounding unincorporated areas, its staff should be experienced handling
customer services issues associated with implementation of automated service.
AB 939 Reporting and Diversion Requirements
Waste Management intends to continue to utilize the services of Dr. Eugene Tseng to
perform solid waste generation and disposal characterization studies. Dr. Tseng will
conduct annual business audits and educational outreach.
Financial Resources and Stability
WM estimates it will need $3.5 million for new trucks and carts to service the City. WM
intends to fund this from either funds generated by WM's cash flow or by borrowing on
credit lines. Several substantial credit lines are listed, and WM's financial statements
indicate more than sufficient cash flow to meet these needs.
WM has provided has provided audited financial statements for the period ended
December 31,1998. WM's revenues for this period were approximately $12.7 billion.
The Tustin contract would represent less than one-tenth of one percent of WM's annual
revenue.
Based on WM's financial statements, we calculated the following ratios for the year
ended December 31, 1998 that indicate the Company's current and longer-term ability
Draft, 4/20/00
Page 4-4
to meet financial obligations. Although WM has significant financial resources, its
financial strength has decreased as a result of weaker operating results by the parent
company. In August 1999, Standard & Poors (S&P) provided WM with a 'BBB'
corporate credit rating. According to S&P, "An obligation rated 'BBB' exhibits adequate
protection parameters. However, adverse economic conditions or changing ,
circumstances are more likely to lead to weakened capacity of the obligor to meet its
financial commitment on the obligation."
Ratio
Current assets to current liabilities
Total liabilities as a percentage of total assets
Pre-tax profit margin as a percent of revenue
0.9
1.0
80%
-5.5%
68%
6%
. Based on data for 271 refuse companies surveyed by Robert Morris & Associates.
Information Regarding Past and Pending Litigation
WM noted 17 matters that were active, pending, or closed in the past 10 years that met
the disclosure requirements of the RFB. These are documented in Exhibit 1 of WM's
proposal.
Draft, 4120100
Page 4-5
Exhibit C
City Letters to Federal Disposal
~
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Public Works 1 Engineering
March 15, 2000
City of Tustin
Federal Disposal Service
Donald Shubin
PO Box 118
Santa Ana, CA 92702
300 Centennial Way
Tustin. CA 92780
(714) 573-3150
FAX (714) 734-8991
Subject: Request for Information Related to Bid Submittal
Dear Mr. Shubin:
The City of Tustin Request for Bid document required you to identify the operating
facilities that you intend to utilize to perform the required services. In reviewing your bid
proposal, the City desires some assurance that the site that you identified is appropriate
and legal for the anticipated use Please provide the following information no later than
March 2th:
1. Provide a letter from the City of Santa Ana verifying that the current and
proposed uses are legal. If corrective action is necessary, please have the City
identify the specific action or process necessary to obtain compliance.
2. Verify the identity of the property owner. 'Your bid indicated that you and your
partners owned the site. However, the City of Santa Ana has provided
documentation related to your occupancy permit indicating that the owners are
either you or The Santa Ana Cannery, LLC,
3. If you are not the property owner, please provide a letter from the property owner
indicating agreement with the proposed use of the property and that the use is
consistent with the terms of your lease agreement
If you have any questions, please contact me at (714)573-3173.
Sincerely,
/~~
Senior Management Analyst
Public Works Department
c: Tim D. Serlet, Public Works Director
Lois Jeffrey, City Attorney
Laith Ezzet, Vice President. Hilton. Farnkopf & Hobson
S:IWastelContract Bid ProcesslShubin property info requestdoc
Public Works / Engineering
March-3D, 2000
City of Tustin
300 Centennial Way
Tustin, CA 92780
(714) 573-3150
FAX (714) 734-8991
Federal Disposal Service
Donald Shubin
PO Box 118
Santa Ana, CA 92702
Subject: Request for Information Related to Bid Submittal
Dear Mr. Shubin:
The City of Tustin Request for Bid document required you to identify the operating
facilities that you intend to utilize to perform the required services. The City desires
some assurance that the site that you identified is appropriate and permitted for the
anticipated use. The City sent correspondence to you dated March 15,2000 requesting
the following information by March 27, 2000:
1. Provide a letter from the City of Santa Ana verifyinq that the current and
proposed uses are permitted. If corrective action is necessary, please have the
City identify the specific action or process necessary to òbtain compliance.
2. Verify the identity of the property owner. Your bid indicated that you and your
partners owned the site, However, the City of Santa Ana has provided
documentation related to your occupancy permit indicating that the owners are
either you or The Santa Ana Cannery, LLC.
3. If yOU are not the property owner, please provide a letter from the property owner
indicatinq aqreement with the proposed use of the property and that the use is
consistent with the terms of your lease aqreement
The Citý has not received your response to this request and again requests your
immediate attention to this matter.
The City is also requiring the same information regarding any other facilities which you
intend to utilize for the in order to service the City of Tustin.
In addition to providing the information identified above, the City also requires a copy of
the lease aqreement for each property that you intend to utilize for your operations.
-:.
S:IWastelContract Bid ProcesslShubin property info request #2,doc
In order to proceed with contract award, the City requires your full response no later
than 5:00 p,m., Thursday, April 13, 2000.
If you have any questions, please contact me'at (714)573-3173,
Sincerely,
<t:~
Senior Management Analyst
Public Works Department
c: William A. Huston, City Manager
Tim D, Serlet, Public Works Director
Lois Jeffrey, City Attorney
Laith Ezzet, Vice President, Hilton, Farnkopf & Hobson
S:IWastelContract Bid ProcesslShubin property info request #2,doc
Public Works 1 Engineering
City of Tustin
April 3, 2000
300 Centennial Way
Tustin, CA 92780
(714) 573-3150
FAX (714),734-8991
Federal Disposal Service
Donald Shubin
PO Box 118
Santa Ana, CA 92702
Subject: Clarification of Request for Information Related to Bid Submittal
Dear Mr. Shubin:
The City has received your response to my letter to you dated March 15, 2000,
However, your response to that letter is not complete and the City requires that you
provide the following information. I also wish to clarify our information requirements
regarding any additional properties that you wish to utilize for both your current business
and all operations associated with the City of Tustin franchise:
1, Provide a letter or other reliable documentation from the Citv of Santa Ana
verifvinq that the proposed use of 1661 E, Palm Avenue for the solid waste
operations required bid is authorized and that all permits have been obtained If
corrective, ministerial or discretionary action is necessary to permit you to
conduct business, please have the City identify the specific action or process
necessary to obtain compliance, along with the approximate timeframe required
for completion.
2. Provide a letter or other reliable documentation from the appropriate land use
authority verifvinq that the proposed uses for the solid waste operations required
bv the bid or for any other site that yOU intend to utilize for any of your operations
is authorized and that all permits have been obtained If corrective, ministerial or
discretionary action is necessary, please havè..the agency identify the specific
action or process necessary to' obtain comp-liance, along with the approximate
timeframe required for completion.
3. If you are not the property owner of any site which yOU intend to utilize for any of
your existinq or proposed operations, please provide a copy of your lease(s) or
rental aqreement(s) and a letter(s) from the property owner(s) indicatinq
aqreement with the proposed use of the property and that the use is consistent
with the terms of your lease aqreement.
S:IWastelContract Bid ProcesslShubin property info request #3,doc
4, For any other site that yOU propose to use, please describe what improvements
are needed to facilitate your use of the site.
5. Please identify the location of vour customer service office as required in the
franchise aQreement and indicate compliance with access requirements
associated with the Americans with Disabilities Act.
In order to proceed with contract award, the City requires your full response no later
than 5:00 p,m., Thursday, April 13, 2000.
If you have any questions, please contact me at (714)573-3173,
Sincerely,
~~
Senior Management Analyst
Public Works Department
c: William A, Huston, City Manager
Tim D, Serlet, Public Works Director
Lois Jeffrey, City Attorney
Laith Ezzet, Vice President, Hilton, Farnkopf & Hobson
S:\Waste\Contract Bid Process\Shubin property info request #3,doc
Exhibit D
Federal Disposal Response to City Letters
Federal
Disposal
Service
TUSTIN PUBLIC WORKS DEPT.
Shubin Services, Inc,
April 7, 2000
Mr. Joseph Meyers
Senior Management Analyst
Public Works Department
City of Tustin
300 Centennial Way
Tustin, California 92780
Subject: Response to Request for Information Related to Operating Facilities for
the Integrated Solid Waste Management Franchise, City of Tustin
:'::
Dear Mr. Meyers,
This letter and supporting-documents are submitted in response to a request for
information from the City of Tustin dated April 3, 2000. We provide herein information
to questions about the proposed Operating Facility of Federal Disposal Service.
Question 1: Authorized and Permitted use at 1661 E. Palm Street
In a letter dated April 6, 2000, the City of Santa Ana verifies the current permitted use at
1661 E. Palm Street. We feel the site is technically capable of accommodating existing
levels of activity along with those posed by the City of Tustin Franchise. However, due
to a concern over the intensification of use, Federal Disposal Service has agreed to
develop refuse collection operations at an alternate location in Santa Ana.
Question 2: Alternate Site: 1430 and 1502 Poinsettia (Penn) Street
Federal Disposal Service has leased a lot in the M-2 area of the City of Santa Ana for
development of refuse collection operations. Attached, is a copy of a City of Santa Ana
letter approving our use at the site and listing action necessary for the occupancy.
Question 3: Lease and letter from owner of 1430 and 1502 Poinsettia
Attached please find an executed copy of the lease for the Poinsettia site with Richard
Katnik. A copy of a letter from Attorney Norm Katnik is herein provided that provides
the assurance that our use is consistent with the terms of the lease.
(714)542-7701 Phcne
(714) 542-8435 Fax
p,o, Box 118
Santa Ana, CA, 92702
1661 E. Palm St
Santa Ana, CA, 92701
Question 4: Improvements at 1430 and 1502 Poinsettia
Improvements required for the Poinsettia site are addressed in the attached letter from
Architect Bert Elliot. Included for your review are a copy of our preliminary
Improvement Budget and a copy of a GE Capital offer to finance improvements at the
site.
Question 5: Customer Service for City of Tustin
The Federal Disposal Service Customer Service location for the City of Tustin Franchise
will remain at 1661 E. Palm Street. Access requirements are addressed in the Architects
letter.
Thank you for your consideration of the aforementioned. If the City of Tustin has any
questions not fully answered herein, please let me know. I have plans to be out of the
office the week of April 10th and return on April 17.
Sincerely,
~ \fíuiïi~
DO~ Shubin
President
c, Laith Ezzet, Hilton, Farnkopf & Hobson
Lois Jeffrey, City Anomey
..
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Attachment
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-
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,-
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MAYOR
Miguel A, Pulido
MAYOR PRO TEM
Thomas E, Lulz
COUNCIL MEMBERS
Lisa Bist
Albena D, Christy
Brett Franklin
Pat,;cia A, McGuigan
Ted R Moreno
CITY MANAGER
David N, Ream
CITY ATTORNEY
Joseph IV, flelcher
CLERK OF THE COUNCIL
Patricia E, Healy
~~
CITY OF SANTA ANA
,-
PLANNING & BUILDING AGENCY
20 èivic Center Plaza IM-201
P.O. BOX 19BB . Santa Ana, California 92i02
fax t7141973-1461
..
April 6, 2000
."
Mr. Donald Shubin
Federal Disposal Service
1661 East Palm Street
Santa A.~a, CA 92701
- ,
.c.
RE:
LAND USE INFORMATION FOR THE PROPERTY LOCATED AT 1661 EAST
PALM STREET
Dear Mr. Shubin:
This letter is in response to your written request to the Planning
Division concerning land use information for the property at the
above referenced location.
"
The subject property is located in the Light Industrial (M1)
zoning district (see enclosure) and has a General Plan land use
designation of Low Density Residential (LR-7) , which allows seven
dwelling lli1its per acre. As a result, the existing vehicle
storage and the accompanying manufacturing uses are permitted
within the M1 zoning district but are inconsiscent with the
residential General Plan designation of Low Density Residential.
These uses may continue until such time as the building or parcel
is vacant for more than 12 consecutive months.
Further, the proposed use is considered an intensification of
the above-approved uses and would require several discretionary
actions, which must be reviewed and approved by the Planning
Commission and City Council. These actions would include
amending the General Plan from Low Density Residential to
Industrial and the zoning designation from Light Industrial (MI)
to Heavy Induscrial (M2).
Mr. Donald Shubin
1661 East Palm Street
April 6, 2000
Page 2 of 2
'.-
Based upon a review of our files, there are no discretionary
actions for this property; however, permits were issued on
May 10, 1999, for site and building façade improvements.
Further, additional parking would be required for any proposed
use for this site.
Should you require any additional information, please contact me
at (714) 667-2793 at your convenience.
Sincerely,
'Í5ðD ~~
Bob St. Paul
Associate Planner
BSP:CM
,oninglec"'S\1661Palm2
Enclosure
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Attachment
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'-,.,
MAYOR
Miguel A, Pulido
MAYOR PRO TEM
Thomas E, Lull
COUNCIL MEMBERS
lisa'BiSl
Albena 0, Christy
Breit Franklin
Patricia A, McGuigan
Ted R Mo«no
1m
,(~ì
:..? ,,'?-
CITY OF SANTA ANA
CITY MANAGER
Oavid N, Ream
CITY ATTORNEY
Joseph w. FlelChe.
CLERK OF THE COUNCIL
Patricia E, Healy
..
PlANNING & BUILDING AGENCY
20 Civic Center Plaza IM-201
P.O, BOX 1966 . Sant~ Ana, California 92702
Fax 1714J 9ï3-1461
,-
April 5, 2000
--
Mr. Donald Shubin
Federal Disposal Service
1661 East Palm Street
Santa Ana, CA 92701
RE:
VERIFICATION OF ZONING COMPLIANCE FOR THE
LOCATED AT 1430 AND 1502 NORTH POINSETTIA STREET
PROPERTIES
Dear Mr. Shubin:
This letter is in
Planning Division
àesignation for
locations.
response to your written request to the
conceYTIing the zoning and General plan
the properties at the above referenced
.'0.
The subject properties are located in the Heavy Industrial
zoning district and have a General Plan land use designation of
Industrial (INO) , which allows a floor area ratio (FAR) of 0.45.
Enclosed are Sections 41-471 through 41-481 and Sections 41-489
and 41-489.5 of the Santa Ana Municipal Code (SAMC) listing the
regulations and uses permitted in the Light Industrial '(M1) and
Heavy Industrial (M2) zones. As a result, the existing
buildings are considered legal within the M2 zoning district and
may continue, unless all the buildings have been vacant for more
than 12 consecutive months.'
Additionally, the City iàentifies these parcels as 1-5 remnants,
and staff has evaluated them to àetermine the viability of each
parcel. Parcel recommenàations reflect the City's objectives as
they relate to land re-use and parcel consolidations. The City
recommends that the above-mentioned parcels be consolidated and
:,'.
..
Mr. Donald Shubin
1430 and 1502 North
April 5, 2000
Page 2 of 2
poinsettia Street
,',
:::
--
conform to current development standards (see enclosures)-
Likewise, the proposed maintenance and repair of vehicles is a
permitted use in this zone; however, the property is required to
comply with the Design and Development standards of the City's
Auto Service and Repair Standards (see enclosures),
-
Further, a lot line
formal review process,
the lot line adjustment
enclosures) ,
adjustment is required necessitating a
The duration of this process including
process is approximately 10 weeks (see
,-
--
Additionally, pursuant to Section 41-625 SAMC, a conditional use
permit is required and must be approved prior to installation of
an aboveground tank exceeding 60 gallons (see enclosure). This
is approximately a three-month process,
.,,'
"
..
Pursuant to the enclosed Section 41-682 SAMC, a nonconforming
building damaged by natural causes or partially destroyed by
fire may be restored, provided the cost of the res~oration does
not exceed the fair market value of the building prior to the
date of the damage. In the repair of the building, there shall
be no enlargement of the total floor area or c:tange of the
roofline. Under these conditions, the Planning Division would
support the restoration of any damaged building(s) on the above
referenced address,
Should you require any additional information,
me at (714) 667-2793 at your convenience.
please telephone
Sincerely,
--
~çC¿J:
'-
Bob St. Paul
Associate Planner
MCM:CM
""",Igen" infol1430 " 1502 ::or:h Poi",ec~'.
Enclosures
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17th
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Washington
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------,----~--.----------------'--------. --
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I-5 REMNANT PARCELS
Parcell
Address: 1502 N. Poinsettia Street
CalTrans No.: 73083-01-01
Assessor Parcel
No.: 398-142-23
LAND USE RECOMMENDATION: continue industrial.
~ REQUIRED DISCRETIONARY ACTIONS: None
Other Action(s):
Consolidate the following parcels into one buildable and
conforming parcel:
Parcell with 1430 N. Poinsettia street.
Existing conditions (Parcell):
,
Zoning: M-1 General Plan Designation:
Redevelopment Area: Inter-city Prior Use:
Lot Size: 24,853 s.f.
Parcel Constraints: a) Access b) easement
IND-0.4
IND
57
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NORMAN p, KATNIK
ANORE:~.,~~ATNIK
KAïNiK 8: KATNiK
ci!'mJlj6rj
1501 NORTH 6ROAOWAY
SANTA ANA, CALIFORNIA 92706
AREA CODE 7 4
TELEPHONE 547-0646
FACSIMILE 972-2272
April 7, 2000
Donald Shubin
Federal Disposal Service
P.0.Boxl18
Santa Ana, CA 92702
RE:
Lease at 1430 Poinsettia and 1502 Poinsettia
To Whom It May Concern at the City of Tustin:
This office represents the ownership interests of the property listed above- In accordance
with your request, this letter confirms that the owners of the property have entered into a real
estate lease agreement with Federal Disposal Service for the above referenced site. The
agreed use of the lease is the parking and maintenance of refuse collection vehicles.
Ancillary agreed uses included; a wash rack, vehicle and container maintenance, outside
storage, and an above ground fuel tank.
If the City of Tustin has any questions concerning these matters, please invite them to call
me at (714)547-0848.
NPK/sv
Enclosure
.~1@
AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION
,'"
STANDARD INDUSTRIAUCOMMERCIAL SINGLE-TENANT LEASE - NET
. (DO NOT USE THIS FORM FOR MULTI-TENANT BUILDINGS)
,. Basic """'Islans (-Bask Provisions-) ,
1.1 PartIes: This Laasa ~""1, doled.,.. ",farence purposes only
byandbetwoen Richard A. Katnik
Aori 1 7
..2JlJlJlis mada
and
Shubin Services , Inc. , Dr its assiqnee The Santa Ana Cannerv
("leuor1
LI.C
(-La...."),
"
(collectively the "Par1J..; or lndividuaUy a "Party")- ,
1.2 Pramlsea: Thai carIaIn raa! property, Including alllmprovemenls therein or to be provided by Lessor Wldar Iha larms 01
Ihis lease, and commonly known as 1430 Poinsettia/lóO2 poinsettia ICaI Trans lot)
Iocaled In the CoWlIy 01 Oranqe Stale 01, California
and generally described as (describe briefly the na!un> of the Property ~~o;_ lOO ØC~"'1œa!-
:¡¡~ (1) approximately ,30,000 sf lot with 3 Butler Buildinqs totallinq
~¡:~r~;~~~eI~e~O É:~b~~: ..~~d a~~~c~~~r~:~:~~e~~d 3l';~~;D~;a~:~ ~~~~~n~ot to
Cal Trans lot to De acquHea DY '-"'~~U.... "Promlses"). (See also Pa..gI1lpl12)
1.3 Tenn: Ten (10) yearsand~monlha(-OrlulnaITerm")commenctng Auqust I, 2000
("Cammencemenl Dale-) and ending July 31, 2010 (-ExplraUan Dais"). (Se..ls. Paragraph 3)
1.4 Early Paa....lan: NA (-Early Passe..lan Dsle,
(See also Paragraphs 3,2 and 3.3) ,
1,5 Base RanI: $ 4,000 per month (-Baae Rent"),payable onlha first day 01
each month commencing Accust 1, 2000 See Addendum for rent scheduI!';See also Paragraph 4)
:¡¡¡ II this box Is checl<8d, tho", lIIe provisions In this Lease lor the aa.o Renl to be adJusled. '
1,6 Base Rent Paid Upon ExecuUan: $ 8 ,000
asBaseRanilorthaperiod Aucust 1, 2000 thrDuqh
1.7 Sectlrlly Deposit $ 4,000
1,8 Agreed Uaa: Office, vehicle
,-
SeDtember 30. 2000
("Security Deposit-), (See also Paragl1lpl15)
storace and maintenance
;....
, (Sae also Paragraph 6)
1,9 Insurlng Party. Lassar Is aha "Insurlng Party" unlass atha!Wisa slalad hare!n. (See also Paragraph 8)
1.10 Real Eatala Brokers: (Sae also Paragraph 15) .'
-j-IR'pr..,.,"Uo.,1JIo","o i.i "or ,,'a'o broko" (.°"'" o~"'?"P"'L?~"
"'msaction (check applicable """"s):
0 'represe usivoly ("Le..ar's Broker");
0 resenls Lessee exclusively ("Le..ee's Broker"); or
0 reprasenls both leSsor and Lessee ("Dual Agency").
(b) Payment 10 pon exacution and delivery 01 this Leasa by both Partl.., Lassor sheD pay 10 tho Drol<ar
~" separala written agraeman! (or If thare Is ~ such agreamenl, th~,!um of ~ % oltha lalal Base Rool
'" ron;",; b\ ,old Ur?"1 ' - , , '
1,11 Guaranlar. Tha oblIgations of the Le.... undar this Laasa ara 10 ba guaranteed by
(-Guaranlo,,-). (See also Paregl1lpl1 37)
1.; 2 -Addenda and exhibits. Al1echad here'" Is an Addandum or Addenda consistIng 01 Paragraphs - through -
and Exhlbils ~ 01 which consUMa . part o/this Lease.
2. Pramlaaa.
2. 1 laUIng. Lassor hereby laases '" Le...., and Lassea hereby laases from Lessor, Iha Pramlses, lor Iha tarm, al tha ,anla!, and
upon aD of Iha tarms, covenanIs and condIIIons sellorth WI this Laue. U-. othefNlse provided herein, any 'tatarnent 0/ size sellor1h WI this
Le..., or thai may have boon used WI caIc:uIaIIng ronIaI. Is an _oxJmaDon which Iha PartiN agree Is reaaonabIa and Iha rental based lhareon
Is nol subject 10 -' wholhat 0( no/ Iha actual aIza Is mora or Ie...
2.2 ConcIWan. Lessor ahaI deliver "'" P- 10 Laasee broom ctean and koa 01 dotHIa on Iha CommoncemanI Dele or Iha Ear1y
Possession DaIa, -llnot 0CCUI8 rslart Dolo"), ónd, so long aa!he requIrad service conImcIa - WI Paragraph 7.1(b) below ara
oblalnod by L- wtIhIn thirty (30) days IoIowing !he Start DaIa, wananIa lhallha axlstlng a-' plumbing, IIIv sprfnkIar, 19hfJng. heeJk1g.
venlllaling and air conditioning - ("HVAC"), IoedIng áoora, If any, and all other such elements WI !he PremIses, olhar Ihan those
conslruclad by Lassae, ahaII ba WI good ope<aIIng condIUon on aaJd - and thai Iha aItucIuraI e_nIB 01 tho rooI, baamg waDs and
loundaUon 01 any building, on tho Promlaoa (tho -BuJIdIog") 'ahall be he aI malarial de/OCIL If a ~ willi saJd -ranty - as
0/ the Slart DeJa. Lessor shaI, ..lasso(s - obIIgeJIon WÌIh respect '" ouch man..., exceplaa 0"""'" provided WI this Lease, P<""1!ny......
recolpl 01 wrillan noIIca lrom Le.... selfk1g Iorth with spodIIcJty Iha naIUle and _nl 01 such non-compIance, ractlly sarna aI l.osso(s expense. ,
If. aller the Start Dala, Les..e doas no/ ¡ Ive Lassor...- nollce 01 any non-compIIance with this warranty wIIhIn: (I) ana year as '" Iha sur!aca
01 the rool and !he auuctural portions 0I1ha rooI, - and bearing waDs, (U) o!x (6) monlha aa '" Iha HVAC systams, PU) IhIr1y (30) days
as 10 the remaJnk1g ayslama and - _Is 01 tho !kö1g. corractlon aI such non-compIIanca, ahaI be the obIIgeJIon 01 La.... eI Lassee's
sole cost andexponse. See Addendum. 2. 3 '
2,3 Campllan... L...... warranlsthal Iha mpr""""" on Iha Promises comply with all applicable taWl, awenanls 0( restrlctJona 01
record, building codes, rogulallona and ordinances ("ApplIcable Requkemants") WI elfact on the SIar1 Dale. SaId watronly doas nol apply 10
the use 10 which Lassae wW pultho Promlaoa or '" any ............ 0( UtIlity InalaJlatJona (as deltnad WI Paragraph 7.3{e)) made 0( to be made
by lessee, NOTE: Le...els ,,--lor delOOnk1k1g who- or no/ tho zoning Is appropriata lor """a'slnle- ""', and acknowIadgea
lhal pasl u.., 01 tho Premlaes may no longer be -- If tho Promlaoa do no/ comply with seld wananly, Lassor ahaI. excepl as otherwise
pro,lded, pronøt aJ1ar raoelpt oI,wrillan noIIca from ....... ..lIIng Iorlh with specII""y Iha no""e and extenl 01 ouch noo-<:ompIIance, redly
the sama al l.osso(, expense. If....... doaa no/ give Lassor wIllIan rub 01 s non-compIance WÌIh this wananty within o!x (6) rnonIho
/oUowing Iha SIar1 Data, COllection althal non-compIanca ohaI be tho obIga!Ion 01 Le.... at Le....', ""e cool and expense. If the ApplIcable
Raquùementa illS heraaftar changed (as opposed '" baing In axlatance eI !he SIar1 Dslo, which Is oddrassad In Paragraph 8.2(e) below) so u
to require dur1ng ... lerm 01 this Laue tho conatrudIon 01 00 add/lfon to or an aJ1aralfon 0I1ha BuIldIng, the ramadlatlon of any Hazlllclous
Substance, or ... roWorcomani or - phyolcaJ -- oIths e.-.g ("Cepltal E'pandlwra"). Leosor and lessee ~ aJta:ata ...
coslol,....""",ufoUow" Jt
' ~ ~
PAGE 1 "
CI.'7 - A~,lc.. Indu,"lai R..I faLllo AnocLlllo<> FCRM 204' .R-2IO7 ,
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,. - PromJsas by ~J: .:::..~ ~ ~~:...': = ~ :~~ :-:.. "'.: =- ~ = .::: I
u ouch CapiIaI Exponditute I8l8qWrod '*""'II tho IulIWa (2»)'88111 oIrllaloa5a 8fld1l1. cosIlherooI.......... (6) monIhs' Base Aen~ Le....
may l1stead _. UIIs leu8 unIou lasor nalllleaLesut,1n -.g. -Ion (10) doyIaIIo< recoi>t 01 Lessee~ t.rmlnallon noIJce thai
~.ssor has oIodrrd 10 pay tho cillo...... be- tho BdIJaJ COlt IherooI ond 1/18 omount aquoIlo... (6) -' Base RBf1l U Losse. .Irrcts
l.rmInaUon,.Laasae shaI ~ C88S8 tho .... 0I1IIe ~ IIIich requIr.. BLd1 CapIIaI ExpondII1n ond delivar 10 Løssor WIIIIen
noIJœ opociIyWIg a tarmlnallon dol. at least ninety (90) days - &rcII -lion data shaI, however, In no 8'o'>U1t be ....... Ihan III.
las' day thai w... could IogoIy - tho - ....... """"'""'*' oucI> CapiIaI ~. ,
(b) U OUch CapiIaI Exponditute 'IÓ noItho result 01111. -- 8fId ....... UBð 01 tho - by leoseo (oucI> os, _rrvnonlBJly I
mandated seismic: madiflcallons), Ihon lasor 8fId Lessee ohoI - tho oI>IIgaIJon 10 pay lor ouch CO&Is _I 10 tho provislono 01 I
Panlgraph 7.1(e);provIded, however,thoU BLd1 CapIIaI expandtuno 11l8qLirodduring IIIe 1ostl'M»'88I1I 0I1I1Is loa5a 0( U Løssor I88sonob/y ,
dalalTl1inas that k Is not 8Cor1C:IIIcaIIy IoasI>Ia 10 pay Illlhat8thoreol, lossar IhaI haV8 tho opllon ID IanOOata II1Is Læsa upon nlnaty (90) days I
prior wrIttan noIJce 10 Lossaa.nasa L..... noIIlIoa Løssor,In wrtIIng. ..... tan (10) doyI,nor ~ 01 lasso(¡ toanInatIon nolJce thol Losseo
wW poy lor oucI> Co¡rUal ExpendIIuro. U Loaor doea noI oIod 10 ...- ond I8l1o,10 _110""" 0I""f ouch CapiIaI expandlWnr.losHo
moy - ouch lunda 8fId deduct ""', will> - from RonI ..... lasso(¡ oharo 01 ouch """" how been k.oIy poId. U Lesse. 18 unable I
10 IInanco Lossot'. ohare, 0( I tho, boJanco 011118 RonI duo 8fId payable lor 1>0 -- 0I1hI8 Leala Ia 1101 ..- 10 IuIIy ro- Louao
,on an off181 bull, ....... .... how tho rfgh/ 10 -ta thIa Loasa '4"'" IhkIy (30) doyo - noIIco 10 Lessor. , '
(e) NcIwIIh&Ioncing tho .-. tho pnMoIono concomIng CapIIaI Ex¡rondIWrua ... Intandod 10 IppIy only 10 ncrn-wIunIoIy,
Ur1oxpec1ed, 8fId now A Ip/IcoII o Roqu/romonto. U tho CapIIaI ExpondiI¡no ... Ntaadlriggorod by Loaooo .. 0 .- 01 an .cIuaJ 0( propolod
c:I1ang. In - change In -...., 01 .... 0('-"" 10 tho PronåðI lion, end In that ovonI. Loaooo - be kJIy f8BpCX1StoIe lor tho COlt I
lI1.rooI,8fldlouoolhollnot'-""frfgh/lotarmlnatolhl8lNM. '", ,
2.4 -Iod~ Le_1CknowIodgoo that (a) I has been odvIaad by Looooi oixI!or BroIun 10 ..tIaIy Øaou wtIh r8apec:t 10
1110 condIIIon 011110 PronåðI (i>cbjng.1XJI notlln1llod 10 IIIe oIodric:aI; \!VAC end IiIo opmIdor oystamo, BOarI1Iy, orMn:rnmenlal upod>, and I
compliance wllttAppllcatrlo RoquinNnonIa). 8fId --filly lor Laasae~ lnIoncIod uso.'(b) Lessee has made ouch investigation uldeoma
neœsaory wIItt ..- 10 ouch .-.. end ......... of ..sponoIr8Iy I1of8Ior u tho ...... relata 10 .. cccuponcy 011110 P..mIses, end
(e) neither Leosor, Lessor'. a- nor any BroIcar has modo any orat or WIIIIen _Ilona 0( -. wIItt _10 B8Id mo.... -
Ihen u BOt IorIh In thb Lusa. In addition, ~osoor -odgu that: (a) - has mado no roprosonlallona, pronús.. 0( _0.
concamlng Lossea'a abIUty 10 honor tho Loasa 0( IUIIabIIIty 10 occupy'" PramIooa, and (b) I llloaaor'a sol. rosponsibWty 10 Inwallgalo tho '
/InandaJ co¡rat;IIy on<IIor ouIIobIiIy 01 of proposod IononIs. '
2.5 Loueo .. PrIot OwMrlOccuponL Tho wonanUo. modo by Leosor In Panigroph 2 .... be 01 no Iorc8 0( oIted U ìnmodIaJely
prior 10 tho SWt D.'o ~o.... was !he owner 0( 0CCI.<p0I1t ollh. Promises. In ouch 0Y0l1~ ~..... ahaI be responslbl. lor any noceswy
conocllvework. ' "" ',-' .'
3. Tonn. "
3,1 Tonn. Tho Conmoncament Data, ExpIIatIcn Dol. 8fId 0rigIn0I T.m¡ 0I1hIo ~.... are u oper:Ified In Panlgraph 1.3. I
3.2 Ear1y -......." II u- IoI8IIy 0( por1I8IIy occoploa 1M Promiae. pllor 10 ... CommencamonI Da'o, III. obIlgaUon 10 pay
Buo Rani thai be abalod lor ... perIod 01 ouch oaI1y pos¡esaJon. AI OCher 101mB of UIIs lBBSo (including but norlmitad 10 III. cblig.Uons 10
pay R..' Property T.... end Inouianca promJuma end 10 maintain tho PromIsoa) ohaII, howovor, bo In o/led during BLd1 period, Art¡ 8UCI1 early
possession shall nol a/led tho Exp/Iallon Dat.. ;
3.3 Delay In _ouoIon. lo- .gre.. 10 use ill boll convnon:IatIy roasonoblo of1orU 10 dollvor >OSSOS$1on 0I1he Promise. 10 ¡
l....o by Ihe Commoncemonl Data, U, dBSpIto said .f1orU, Le-Is unable 10 d.lIvor posaoasIon .. .gr.od, lessor ahaII not bo aubject 10 I
any liability 1h...Ior, nO( ahaI oud1laUur. oIted!he IIBIIdIIy 01 Ihls ~.aS8. Lossoo ohoI no~ howovor, be obIIgaled 10 pay R.nl or p.rlom¡ lis olhar
obUgations until rocoNes possession 01 tho Pro....... II possession Is nor de/lverod within oIxIy (60) days attar !he Commencemenl D.lo,
Loss.o may, at lis cpllon, by noIJœ In wrIIJng within tan (10) deys aftar!he end 01 8UCI1 alx1y (60) day perIod, cancalthb lo.s., In which 8'o'>U1t
III. Par1Jos shall be dJ&chargod !rom.1 obIIgallona hereundor. II ouch WIiIan nollco Is nol rocolvod by Úlssor wiIhí1 said len (10) day perIod,
~.ss..'. righloo cancoI ohoI tannlnelo. Exœplas _0 plOYldod, I possession 18 notlondorod 10 Le.... by It18 Start Data and ~..... ,
doe. not """"""0 IhIo LeISB, as oIorosatd, any parfod 01 ronl abo'.monI flat Lesseo would - have .~ &hall run Irom !he da.. 01 '
d.llvery of poaseoalon 8fId conIInue lor a period aquoIlo what Losseo - otherwise how on oyoéI undor tho Iorms hereol, but minus any ,
daya 01 delay caused by ... Bda 0( cmIuIonro 01 Losseo, /I pos- 01 It18 Pr....... 18 not delivered - lour (4) monIh8 aft.r tho '
CommoncomonI D.lo, UIIs loaso ohoI tannlnel. unJus olhor .groom.... are roadled betw.en lestOl end """', In wrWng. 1
3,4 Loo- Compllanoo. LeBBOi' - not be required 10 lander poooeoalon of III. Pr- 10 Le.... untI LeIS.O comp'.' will> ..
obIIgallon 10 provIde ovldonca of Inauranco (Panigraph 8,5). P.ndIng doMry 01 ouch ovidonc:a, u.... - be l8qWrod '0 perform oJ 01 ..
obIIgallon8 under UIIs ~.... !rom and alto, tho Start Dato,.1ncJuding ... poymolll 01 Aen~ noIwIIhatandIng l.osscx'. olectlon 10 w1IhhoId :
possoasloQ pending rocolpl 01 oud1 ovIdonce oIlnauranco, F",,".r, U lossoo 18 requlro<t 10 porform""f other conáIIons prIor-lo 0( concunont. .
wfIh 111. Start Dat., ... Start Data ohBI ccour but LeBBOi' moy oled 10 - posaoasIon unIU 8UCI1 conditione ire ISliaflOd.
4. Rent .
4.1. RonI Denned. AØ monalarý ~ of Lessee 10 Leooor undar 1t1810lmB,oIlhia l.aua (BXcapt IorÍho SaautIy DopooII)...
doomed 10 be '.n! ("Ront;. - ,
4.2 PaymonL Loasoo - - poymanI 01 RonIIo be rocoIvod by lasor In ~ money of tho UnIIOd SIatu, - oIfl8l 0( ;
deducIIon (ucaplulpodllcoly pormiItad In IhIa Leala), on 0( beloro'" day on which I II duo. RonIIor any porlod during !he Iarm harooI I
which Ia lor IoBIIhon one (1) fu catondor monIh - be prorated baood '4"'" Ì18 Bduat - of dayo 01 said mtr1/I¡, Paymonl 01 RonIIbBI ~
be made 10 lestOl at Is -- IIatod - 0( 10 BLd1 - - Q', pIaca .. Louor ØVIf ¡om limo 10 limo designata In WIlIng. .
~ ~;:::.= =~ Ihon duo.ohBInoI.be'..w..rol ~ rfItU ~... - of BLd1 RanI, rogardoa "'; ¡
~=:~ ~ ~ =\,~ ~;~-:i~ ~~~ ~ ~~~~(.'.I <
rolaln of 0( ""f portion 01 said Saa.aIy DapoaIIIor Iha poymanI 0Iarr-¡ - duo Louor 0( 10 - Q' -- l.ouor lor añy ~' ,
, _!WI,1ou 0( dlmago which Laaor may ~ pr Ina¡r by r.......lharocl. . Laaor UB88 0( appIIaa oJ pr ""f portion 01 said SacurtIy DopoBIj¡ ~ :
l....olhal wiIhí1 tan (10) doyo aft« 'IIIItan r-" lharolor dopoaIImcdoo wIIh LeBBOi' _10 - said SaautIy D.poatt 10'" fu ' : l
~~by':- [.:~::. a;: to'::.=n-:~ =--:"~d '= =:"...... ~ ':: ~ ~~.,
Ronl u tho ...... SacurtIy Dopod boro 10 Iho InItJat IIaBe RonL - 1>0 Agreed II.. be amoncIod 10 occomrnodIIa a motariat ¡:hango In 1110 I
blain... 01 ....... 0( 10 acocmnodata a - 0( assIgneo, Leooor Ihe.I how 1110 rfgh/ to Ina- It18 Seariy DopooIIlo tho - ¡ I
n.ca.sary, In louor'. roasonable þ gmonI, 10 occount lor any 1ncr00Md wear and I8ar that tho Pr....... - BIlf« u a roBUIIlharocl. . a I
=~:,,~ ~ ~~~ ~~ ~=::..~ ~ ~~ ~ ~s::::~, I'
be a' a corM>OICiaUy rouoneblo level baood on said chango In - cordIIon. Leosor IhBI not be required 10 koop tho Security DeposII :
..pa..'. Irom" gon.rel oa:ou'dS. WIIhIn Iourtaen (14) dayo after tho eq¡bJIon 0( - 011110 lBBSo. I Le- oIeé:1s 10 apply tho '
Security DopooII only 10 unpaid RonI, 8fId oIharwIso wtIhIn IhkIy (30) doyo _Iho P,- ,.... been vecatad - 10 Paragraph 7,4«)
below, ~.BBOi' 1hBI...... thol por1Ion 0I1IIe SocurlIy Dopod not uood 0( øwIod by Luaor. No pori 011110 Seariy Dopod~r:onoIdorod
10 b. held In.,..., 10 boor Intor... 0( 10 be ptopoyrnenllor any rnonIe.1o be paid byLe- ~."~', .
PAGE 2 ...... '1//
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5.1 U... Lessle oheJf ... end occupy the .......... only "" the Agr- Use, or any -legal use which Is "esonabIy compenoI>e
therelo, and "" no other ptJt >O$I. less.. 8haII ri9t USI or permit the use 01 the Premises n a monner the! Is _w1uI, aeala, damage, waste
, or a nulsonca or thot dlsluro. ownora onrJIor oCa.¡ianis 01, or caus.. damagalo nolghlJoó>g prtIpef1Ioo. lossor shall nol unraesonably-
or dalay lis ~nlio any wr1IIon ""IUI" "" I - 0/ the Agnood Use, 00 long .. tho same will nol ~ tho s/ruduæl 0Ugrl1y 01 the
Impm..me.... on the Prømiseo or the mochonlcaJ or eledrical ays10m01heroln, 10 nol oignIIIoonIIy more - 10 the Promises. . LOS3Œ
.1"", 10 - ",,",ani. lesso< ohaIl within live (5) boome.. dayo after ""'" ""Iuest gIwo - noUflce~ 01 same, which nodca .....
IncJuda on _lion, of """"0 ob ectiono 10 the - .. use.
, 8.2 _OWl Subo"",".
; (I) Reportable U- Roquilo ConoanL The larm -- Subs....." .. used .. INs loose she! moon any -
subslanal, or ""'0 - proserica, use, monulacWro. dIspooaI. """-'"""". or - ...... by - or .. """bIna!Jon with other
malarlaJo _ad 10 be on the PremI.." Ia eJ1her: (I) potanllally ~ 10 the p.- health. safely or -. the - or tho
Þ"mIses, (D) reg""ed or rnonIIo<ed by any _mmonIaJ ouIhoriIy. or (8)'0 basla "" poIenIIaIlobIIily 01 Lossor 10 any g"",rM1onIBJ agency
br IhIrd party lnIer any opp- alalule or convnon low theofy, - Subotancos'.....lncIude, but no! be lmJted 10, hyQocetbono.
perr%wn, gesoIno, ondIor crude 011 or any produdo, by-pIUducts or ilodIono tho...". lessae IIheI 001 engågo n any actMty ÌI '" on tho
, Prar¡1Isos which constItut.. a Reportable Uaa 01 Hazardous S~ without 1110 - prior wr1IIon consanI 0/ lOO$Of end II-naJy
. Î:om¡>IIance (01 lo...a'a e>q>ensa) willi 011 AppI\cobIo RequúemonlO. "RoponahII U.."ohoJ meon (I) the _lion or use 01 any - or
, bòlow .mlnl....go lank. (D) tho gonl"Uon, poooossIon, sIora.o, use, 1nInoportoIIon. or dIspos8J 010 - Subslanal IhoI roquIroo a
, permit from. '" w11b rospeçt 10 which. report, nob, rog!sIro,Uon or buoi1oso plan 10 roquIrod to be IIod w11b. any "",","""nlalauthodly. ---
IUJ ,1110 presonco 01 tho Premises 01 I Hazanfouo 5ubstanca w11b rospocIlD which any AppIcabIo Aoqulromon, I. roquIros lI1al a ooII::a be gMn
10 Parsons onlorlng '" oco:upyo.g tho Promloaa '" boIghbor1ng p¡opor1loa. NoIwIIholor1drog Ihè Iorogolng, lessae moy use any D<dnary end
CUS1omery melorlals reasonably ""Iulred 10 be used n tho normal course 01 the Àgroad lJaa, 00 lOng a cuch use Is n compIIanco w1Ih 011
AppDoablI RoquVomenlo, 10 001 I Reporlobll Uoo, end doea nòt expose tho P..rnIooo or no\ghboIing property 10 any rneonk1gfuI rIsI< 01
con_tion '" domogo or - looaor to any IabIJIy tho..lor. .. "-' Laooor moy condition Ita COf1O8nI to any Raporloblo Use ~
ieoelvlng ouch IddlUonol ...uroncoo a loaoor roaoonobly deems I1ICBOO8I}' 10 protoct 1IseIt, the public, the Premisa, ondIor tho orMro<mont
ågalnol damoga, conlomlnaUon, k1 ury ondIor llablllly, indudJng, but not ImIIod 10, the ins_lion (end ..""""' on '" be""a lo... cpIroUon or
larmlnaUon) 01 prolectlve modlllcolJona (ouch a concrole ...,...menls) --- Ioaeoolng !he Seour1Iy Deposit.
(b) Duty 10 Inlorm Loaoor. It lo...a knowa, or hu roaoonoble oouse 10 boIew. IhoI I Hazardous Sub,lanaI hu come to be
Iocalad n. on, undar or obout tho p..mJoas, oll1ar then .. pravious/y conoonIad 10 by losocr. lo...o IIheI knmadlalaiy give - noUca 01
such lacllo lassor, and provlda lessor w11b a copy 01 any raport, notIca, cIUn '" othor doaononlaUon which . has conoomlng ilia prooanco 01
.uch Hazardous Subslonca,
(c) loa... RemldloUOn. loosea ohaJ no! cause or perml! any Hazardous Subolanal 10 be - or roteooad In, on. ..-, or
aboullha Promise, (including Ihtough lI1a plumbing or oonIIory aawar oyoIom) end IIheI prompUy, at lo...e'a oxpensa, taka aI "'-'igalory
and/or ramadlal acUon reasonably roconvnandad, whe\hor '" nollormaJly onIerad or roqulred, "" the cleanup 01 any conlamlnstion 01, end br
rha malnlananca, .aalrffy ondIor monllorlng ollila Pramlsos '" nolghlJoó>g proper1los, that .... caused '" melarlo/ly con-led 10 by lossae,
or partalr1Jn. to or nwolvlng any Hazardous Subolonoo bIoughl onlo the Ptomlaeo during tho Iorm 01Il11o lo- by or "" lo..ao. '" any-
party.
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(d) loa..e Indamnillelllon. le..ee ohaJ indemnify. daland end hold loaoor. .. ogo.... Imploy- Iondara ond ground Iosoot,
d '"y, harmlass from end against any end aD 10.. .1 ronls ondIor damagas, IlabmUa.. judgrnonts, claJrno, _no.., penahJ.., and oUornoyo'
ond consullanlo' faa, arising out 01 or IrwoIvIng any Hazanfous Substanco broughl onlo tho Promise. by or "" Leuaa, or any IhIrd party
(provided, how..er, that le..aa shed have no liability under thlo leasa wllI1 raopecllo underground mlgreUon 01 any Hazardous Sub~
under Iha Promls.. Irom ad)aeenl properUae). Le...a'a obIIgatJono IIheI k1oWo, bul nol be lmllod 10, 1110 effects 01 any conI8m/na!Jon '" Injury
10 person. proparty or Iii. anvironmonl erealad or outIared by lo..aa, end 1110 ensl 01 moo"aUon, "movaJ, ..medlaUon. raslorallon ondI",
,b"aman~ and shall eurvlva 1110 axpIraUon or larmlnation 01Il11o Lao... No lannl.alton, cancellaUon or ..10... agroomlnl on"rod Inlo by
lesaor end loaa.. ahell rol...o leaoo from Ita obl/galtona uod" thIa laaoo with roopoet to - Subaloncaa, unIooo
spoclflcally I. -grood by loaor In writing _I tho limo 01 ouch IgroemonL
(a) loosor IndamnllloeUon. lessor end .. SUCOOSOOf1l end assIgna ohaI k1damnIfy, doland, rolrnbwse end hold lossaa. ..
employ..s end lenda",. herml... ~om end ogalnal any end alanvlronmonlol domogas, indudJng the cosl 01 ramedlallon, which eodsIad .. .
r.,ull 01 Hazerdous SubsOOncas on 1110 Pramtsa, prior 10 tho Slart Dalo '" which are caused by tho gro.. nagBgonce or w1IUul misconduct 01
loosor, 110 aganla or employa... looaota obIIgaUono, IS end when raqu!rad by 1110 AppIJooblo Aoqulromenls, ohaJ Induda, but noC be ImiIod
10, rho cool oIinvasUgallon, ra"""",, remediation, raatoraJIon ond!or obaIomonI, end IIheI ourv1va the þpùollon '" Io.......Uon 0I1h!o loase.
(ij InvaoltgaUonl end RlmldloUo.... l...... ohaJ ..1aIn tho rooponolbWty end poy "" any InvesUgallono or ramadlaUon mea.....
raqulrad by govammanlalanUtias having JurIocicUon w1Ih raspeçt 10 \ho oxIslanœ 01 Hazerdous SubsIoncas on the PramJoa. prior 10 the SIart
Dsla, unla.. ouch ramadlaUon maaiuro 10 roqulrad a - rooull 0/ lo...o'a use (including "AIIonIIIono", a daflnad n parograph 7.3(a below) 01
lI1a Promise" n which OVInl lessoo ohoJ be..- "" ouch paymanI. loooaa ohaJ cooporolo fuIy ÌI any ouch -a litho roquast 01
tassor, including allowing loaoor end looso(a agonla 10 have raaoonob/o occaso to the Promlooa at roaoonabla _a .. ,ordar 10 cony oo.c
losso(ainvasllgaUvo end rarnodal r~ ' ,
, (g) loaoorTlnnlnoUon DpUon. It - - Sobolonco CondIUon ocouno dumg the Iorm 01Il11o loase.. unI... lossoo 10 IegaJy
..- lI1arl"" (In which CUI loooaa I/lol rnoI<a the IrwooUgoIion end - - roquhd by the AppIcebIa Requlr- end
'/'Is lo... I/lol conIInuo In fIII!:>n:o end I/fod, but IUb ocI to loooor'll1gIU IO1dor PoroQroph 8.2(d) end Parograph 13),loooot moy, at loooor'.
<>pilon, Ifthar P) mltlgato end romadIatl ouch - - CondIUon, - roqukod. a soon a roooonobfy PO_I oIloooor'a
oxponse, n which - Il11o loooollhel conIInuo n .. !:>n:o end oIfocI, ... II) _Iho -- _10 romadIoIo ouch - - IwoIvo
(12) lImo,the then monlhfy Baso RanI... $100,000, _10 groolor, gIwo wrtuon noIIco 10 lessoo, -lhirty (30) days - ~ by
lessor oIknowIodgo 01 tho OCCUITonco 01 ouch Hezardouo SuboIonce Conc8on, 01 ~a -. to -Il11o loooo .. 01 tho dolo o!dy
(60) doyolollowt1g tho dolo 01 ouch noIIco. In tho _loooot oIodo to gIwo - IormkloJlon -,"""" moy. _Ion (10) days 1horooIIor,
give wrtdon notIca 10 loosor oIloooaa'a - 10 IWt \ho arnounI by which Iho - 01 the -lion 01 ouch Hazanfous SuboIonce
CondIUon - on amount oqua/ 10 lwetva (12) Ifmoo Iho thon rnonINy Baso Rent... $100.000, --10 grollar. lo...ollhel provfdo
lasaor wlrh oaJd W. or oatIofacIocy IIOOUIOnCB therool - IhIrty (30) deyo following ouch ccnvnItmenL In cuch ovont, INs loose IIheI
conUnuI In "" forca end a/fod, end losaor ohaI procaad 10 meI<o cuch romedloUon .. soon .. reasonably possIJIa allar tho roqulrad funds
ora avoBobia. It lo...a doe. not give ouch nollca end provfdo the roqulrad fundo '" IIOOUIOnCB therlol wIIhIn \ho - provided, IhIo loose ohaJ
"rmlnala .. 0/ the deJa opecIliod n loooor'a nub 0I-1lon. " '
I 8,3 lel...'a ComplIonco with Appll~ Rac¡uIromonto. Ex<opt.. 01110- provided n Il11o loase.. i.ossea ","d, oIlessae'.
ooIa expanse, fully. dlUgonUy end n - -II< monnor, maIorioly compfy wIIh 01 AppIIoobIa Requlromonto, tho roquVomonIO 01 any oppbbIo lIre
Insuronco unde_er or rating bur",. end tho reconwnondallono oIloooor'. ongtnoera ond!or conouIIanIo which roIoIa In any mamor 10 \ho
Promise" wlthdut regard to whether oaJd roquVonøQ are now n IIfoà '" bocomo ofloctlva atIor tho SIor1 Date. looseo oheJI, -Ian (10)
day. a~ar rocalpC oIlossor'a wrIIIon roque", provfdo loooot w11b copIoo 0101 parmllo and oIhar doaononto. end oIhor nlormellon ovIdanc¥>g
loss.a a compIIonca wlrh ony AppIcab o Requlromonlo opodfIed by loooot, end shed -iy upon rocalpt, notify loooor In """'" (wtIh
copIea of any documento Involved) 01 any Ihtoatonad '" ocIual cIoIm, noUca, cIIoIIon, wanWIg. ~ or report partùW¡g to or IrM:M1g tho
IaJJura oIlo...o or tho Prornlaaa to compfy with any AppIcabIo Roqulrornonto. . ,
, 6,4 lnapecUon; Compliance. loa"" and loooor'l 'tondar" (a - n Paragraph 30 below) end COI1OUIanIa IhoII have tho r1¡tt
10 onler kIlo Promloa. 01 any Umo. n tho CUI 01 on Il1IIfgoncy. end oIhotwIoa 01 raooonablo -, "" tho purpooo 01 i1opecUng \he conctIJon
oIrha Praml... end "" vortfylng compUonco by loooaa wIIh IhIa loooo. Tho - 01 any ouch NpocIIons IIheI be paid by loooor, - I
vIoIaUon 01 AppIIoobIo AaqulrOß18r1lo, or - contarnk1ollon 10 foood 10 - '" be knmInont, '" Iho Npoction Is roque...d or ordered by .
govarnmanlal_ulhorlly, In.uch case, lo...o 8haII ~ roque.. rolrOOtnoloooot "" tho COlI 01 ouch NpocIIons, 00 long a ouch Í1IpOCIIon
10 ro..onabiy ralaled to 1110 vfolaUon or con-lion. PAGE , --,;~ ,f¡-
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U""""""; Repalla, UUWy """"tIan8; ~ flxtu,.. ond ",,","!Jon..
7.1 u.-'. Ob/lgallona. ,
(a) In GanaraL &<> od ID II1a pn>Yts ana 01 Pani lBp/l22 (ConciIIon), 2.3 (CompIIanœ), 11.3 (1.8....'. CanpUance with o\¡>pIcBb .
RaquitlllNlf1lS), 7.2 (l.8SSDl'a ObIgaIJons), 9 (Darnall" '" De_), and H (Condamnallon), L....a shall, at Lassoa'a ooIa upense, kaep
tha Promises, UII!Iy InsIBJlatlons, and All-In good onIar, ccndItIon and IBpBit (""alhar """" II1a porUon 0I1I1a _as requiring I1IpBIts,
or Iha maans 01 ..pBlrlng Iha ...... arø rBBSOnBbIy '" IBBdiIy ."",ssJbIa 10 u.s.a, and """!her", nol!he ..ad for such rapaIrB ocan as a
resull 01 Laasee~ usa, any prior usa, !he -- '" Ow> .go 01 ouch - 01 !he P,emJsaa), k1cIudJng. bu! no< _ad 10, .. equJpmaru '"
-lie.. such.. ~;haadng. ...oIBdng.'aIr-candllJonlng, aledrlcal,1ghIJng facWlJea, -... p<assurB -, fira prolBdlon.,....." ,
fixlutas, ..... Wador and -, -lions, ca/Ing$, rools, lloors, -, doors, plola glaao, Bkylghts, landscap ng, driY8ways. parldng I
Iots,lanc:as, rulBinlng waUa, signs, sidewalks and partcwaya -lad In, on, or Ild aœnlIo tha Promises. u.s... In lœeplng lI1e p,emJsea In good ,
order, condIIIon and repair, sh&I - and perlorm good mllinlonance pnidIoel, spedIIcsUy including lI1e proauumenl snd ffiaJn\ønance 01
lI1e..Mce conInId$ required by Pani lBp/l7.1(b) - Le....'a obiJg81Ionø iheJllncIudO resl_, reptecemants or renØw8b """n ¡
neœssøty 10 kelp the Pru...... and "Irnprowmentslherøon or I pert-In good older, condIUon and stale 0I18p8!r. lBssee shall, wmg
tha lerm 01 this w", keep Ihe - - 01 the Building In a - <Of1dlllon consistanl wW\ tha 8Xllrto.- oppalrsnce 01 other
sImJIsr /adIities 01 ~ II B and Blza In the vb1IIy, including, wilen necessery, Iha 8>darto.- repøIntIng oIthl Building,
(b) Sorvlca Con_' L..... ohd, 11""""a 0018 8X J8r1&e, procura and malnl8Jn conIlacIs, with copies 10 La..."In cusIomaty :
Ionn 8I1d øUbstance lor, and with conInod"" øpec:Idmg and sxperlencad In Ihe mllinl- 01 Iha -.0 equipmenl 8I1d ~ . I
any, . 8I1d wilen ""l8Dad on Ihe - Q) I:iVAC oqu/prnenI, (II) boIec, and p""'" -... (III) lira exttn.-. a,.""', k1cIudJng lira ,
stann and/or arnoI<a delBdlon. (Iv) IondacøpIng 8I1d In!galion a,......, (v) rooI covertng ond dr-. (vi) -yo and parldng Iola, (vI)-.
(viii) baaIo uIIIIy Ised 10 II1a par1m8Isr 0I1I1a BuIldIng. and (Ix) any - equJpmenI, U raucnøbly required by LaUOf. I
(e) Aepl.coman!. &<> od 10 Laasee'IIncIeoMaicatIon 01 Leucr as ..1 forth In Parø lBp/l8.7 balow, and wIthoul r8llevlng L.....
01 IIabIIIIy fIIS<IIIng lrom .......~ Iaiun> to -- and parform good mllinlanønce pradl:ø.. I lI1a Baaic Elements dssai>ed In
Pani lBp/l7.1(b) cannot be rupabod _than a! a cost w!JJch II In exœas 0160% 01 tha cost oI..plødng such Baaic Elemants, then such
Beslc: E*'- ohd be /8pI8cod by laa8o<, and II1a - II1aruol ohd be >fonIIed betwean Ih8 - and La.... shøIJ only be ob/!g8lecf 10
pay, aach month during II1a rømalnder 0I1I1a lann 0I1his L...., on II1a dote on w!JJch Base Ronlll due, an 8I11QOO 8< U8J 10 tho prodI.d 01 ,
muJllplytng tho - 01 auch repIøcømønI by . ItacUon, Ih8 nume..1or 01 whId1l1 008, and lI1a -lor 01 wI1Ich II Ih8 number 01 months 01 :
!he u..1uI lite '" such rupløœmønl as ouch ..alul lite II apecI/Ied puru","" 10 Pedarul Income ... ..gulaUonl or guidellnaa lor daprøclølion
thalaol (Inc:U:ttng lnIa,a" on tho tnømor1Iz8d b8Jancø 80 II then comrnorcløly _lain tha Judgmant oIlusota ø=untønls). with La...a
la..rvlng Iha right to propay lis obIigolion a! any lima. ,
7.2 woo(a ObUgatlona. Sub 8cllo Ih8 provIsIonø '" Panigraphl2.2 (CondJllon), 2.3 (CompIIanœ), .IDamaga 01 Oas"UdJon) and :
1< (CondemnøIIon), U Is Inlanded by the PortIaa haralo Jtu¡ La- haw no obUgaI/on, In any mannor """Iso8ve', 10 rupalr and mllinl8ln Ih8
P"mJses, '" Ih8 equJpmaru 1hsrak1," 01 w!JJch ob/!g8l1onø arø "'landed 10 be 1h81 oItha La...a, II ø Ih8lntentJon 0' the Partias !heltho Iànns
0I1his La... govern the raapecIivo, obIIgBlJons 0I1h8 PortIaa 80 10 mllinlonance and rapalr '" tho PrømJs.., and thay exprassJy walva the b8t181Jt
01 any .lalulB now orhoraal1ar In eIIect 10 Ih8 8XI... Ulolnconslslant with thetsrma olthll Laa...
7,3 UIWty "'ala'lotJo..; T.- AxUu-oo; AJtarøtlona. '
(a) DoI nJ!Jo..; CanMnI Roqulrad. Tho IBnn "UtJtJly InaIalloUon.- rala.. 10 8ll1Ioor and window coverings, oJ, IIn.., powør
pana", alecltlcal -Uon, Ieariy and lira prol8dlon syslaml, communlœtJon ayslams, Ughllng flxluros, HVAC equlpmen~ plumbing, and
fencing In or on Ih8 Pramlo... Tho larm "Trada AxUu-oo" sh8J maan """"a machlnar¡ and equlpmanllh8l can be rumavad without doing
melartet damago 10 tho P,srntse.. Tho larm "AlIa..tJOnB" shøIJ maan any modUIc8Uon 01 Ih8lmprovomonts, otha, Ih8n UUHIy 1ns..IlaUons or
T..da Fbtur.., """thar by - or delation. "1.8.... OWned AllaratJona andlor UtJllly In.lallotJon." a,a dlfk1ed .. ""aruUons 800'or ,
' UglIly InsloJlalions mada by ....... IhøJ ora not yol owned by Lasso, pursuant 10 Parøg..ph 7,4(0). Lassaa shall no< maka any Allal8llons '" I
,UWlIy InsIoIIatJons 10 tha P,ømJs.. wIIhout lusota prior wrilJan consenL l8ssea may, however, I11IIk8 non-lIrucJW8I UWlIy !nsl8llollona 10 Ih8
Inla"'" "'tha PromJsaa (oxcIudIng the roo/) without w: ¡ conSanl bul upon noti:ø 10 Lassor, ..Iong asthay sra not vi...o ',om tho oolsida, do
nol Involva pw1dur1ng, ,alocøJlng or romovlng Ih8 1001 '" any exlsl/ng W8JIs. and tho cumulalJva =1 tho'801 during this Laa.. as 8>danded does
nol..ceod $50,000 In tho og¡¡'øgaJ8 or $10,000 In.any ona YaIr.
(b) Con..nL Arrt AlIBI-.. '" UUUIy InsIaIøtIonø Ihol La.... ohd dulra 10 I11IIk8 and which ruqulra the consanl 01 the laa8o<
shaJI be pr8S8rllecf 10 Lasso< In wrlaan form with dalalled plans. Consenl ohd be deomed c:ondIJIonad upon La...a's: Q) acquiring 811 øpp/IcebIø
gove...onoat penniIs, (II) furnishing l...... with c:op/aa 01 both tha pannlls and II1a piano and øpecl/lclltions prior 10 convnencemanl 01 tha wor!c.
8t1d PII) camplt8nce with 811 r:onditIon8 01 - pannlls and othor Applloable AequIr....... '" . promp1 and ..ped"lo.. manner. Arrt AIIe..tIonI
or UIUlIy InsIalaJlons shall be parlorm8d In a worIun8ntfkø III8IIr18r with good and au-nl malarlals La"'a sh8J promptly upon camplalion
furnIsh La""" with ..-bulll pions and spec:UicetJons. for wort< which =.. an amount equoJ 10 Ih8 gra8lal0l 008 month'. Basa Ran~ or $10,000,
Lassor may candiIIon U. consent upon u.s.a providing BIen and camplaUon bond In 811 amount aqual 10 ona and one-haJ lImas tha Oltlm8led
- 01 sue ¡ A¡te13lion or UIIUIy instaIaJIon endIor upon l8ssea'a polling an 8ddItIon8I SlIaJrtIy Depoolt with Lossor, .
. (e) IndamnlfleatJon. Laasee oh8II pay, ""811 due, .. ctalma lor labor or mal~rIaIa lurnlshad or 8II.ged 10 have baanlumJahed 10
or lor La.... .. '" lor.... on Ih8 PI_, whId1- ara or may be.....ed by any _'a", mala_on'a'" agalnslthe PrsrnIsaa
or any Intarosllhsrain. La.... ohd gIvø laa8o< notlua than !en (10) rJeys' noti:ø prto.-Io Iho cornmancamanl 01 any worx In, on or 8boo11h8
P,aml..o, and Lossor ohd hove II1a right to post - of non-raapanølb/lty. "Lasaøa 8hd cantesltho Y8IIdIIy '" any 8UcI1 Uan, claim or
demand, then .......a ohd, a! lis - -- defend and proIac:t ItsaU, laa8o< and Iha Promlsaa .gø/nal1h8 ..... and ahoU pay and setJsIy
erry such - udgmant IhøJ may be l8ßdered Ih8roon bafora !he ønJorœm8nItherool. "Laaaor 8haJI .aquI,a, Laasee - lumlsh . BUraly
bond In an ....... 8< U8J 10 ana and -1Irnaa tho BrJ1O'8II "'auch conI8sIed lion, claim or damand, Ind8rMIfyIng LaI8Or agoNt IIsbUUy
for tha...... llaa8o< - 10 pør1Ic/p8Ie In any w: ¡ adIon, La.... ohd pay laa&or'l attornaya' .... and =... '
7.4 Ownarøhlp;Rarnovat;Surrandar;andRaolarollon. , "
(a) OwnarohIp.' Sub od 10 laa&or'a !lghl1o roqulro rBnlOVllJ '" oIec:t ownarohIp as - provided, .. AllBrutJona and UII;ty ,
- made by Laasee ohd be Ih8 property of Laasee, but c:onøIdered . pert of Ih8 PromI&a.. laa8o< may, a! any lima, afact In wrJIIng ,
10 be tha ownør '" oJ '" any øpec:iIIed pert 0I1I1a Laasee Owned Aila- and UUUty inaJaIaJfonø. UnIaa8 oIharw188 InsInJdod par
Parograph 7.4(b) heteoI, aIILaasee Owned AllBraIiona and UIUIty InstaJIaIlono 8hd, a! Ih8 øxp/I8IIon '" IennlnaUon 0I1his L...., bec:oma 1hø
' proparly of Løuor and b. BUrrOndar-ed by laaau with the Promise.. '
(b) Aomoval By daJIV8ry" Laasee 01- no<Ir:e Irom laa8o< not88rUsr Ih8n nlnoly (go) and not lola' Ih8n IhIrty (30) rJeya prior .
10 the 8nd 0I1h8 I«m of this La..., laa8o< mey requtr. IhøJ any or aU laaoN Owned AlIBraIiona '" UUIIty InsI8ll8Jlonø be ,emoved by Ih8
exptraUon or tsronln8l/on 0I1his Leaaø. LaUOf may requh II1a rBnlOVllJ .. any lima 01 all or any pert 01 any Lo...a Owned AlteI8lIono or Ullily
InsIoIIaIiona made without Ih8 ;equlred conøent.
(e) lHrrandarlR..lorolJon. La.... ohd BUrrøndet ilia P,~ bot Ih8 ExpII8IIon Dale '" any 88rUsr la,onIn8I/on .¿..., with oJ 01
the Improvernønla, pans snd 8Udacaa lharøol b,oom d88n and k.. 01 debrl8, and In good operating ordar, candJUon and""a 01 rapBlr, ordlnsry
wear and lasr øXcepcecf. 'Ordinary.... and 10... ohd notlncbfa any """- '" dalarforøUon Ih8I would have been p,ove"ad by goad
maJntenønce pr"""". La...a ohd r8p8Jr any dern811" oc:caaIoned by lI1a 1n8IdøIIon, maInte..... '" ,BnIOVIIJ '" T'ade Rxlurea.le...a Owned
AJtø,atlonl and/or lhI/Ity Inll8/l8llonø, UnIBhInga, and equ/pmanlaa waØ aathe removoJ 01 any ,'orage '""" In,laUed by or lor La...e, and Ih8
ramavat, rap/8cernenl, 0' ,amadl8Uon 01 any 00II, melertet or ",oundwala, conIernIn8lecf by La...a. Trade Ax"',aa ahol r8m8ln the property 01
La...a and ohd be ramoved by laaoN. Tho l8Uu,a by Laasee 10 IIrnoty V8C81aIh8 P,amlsøa pur8U8l1l1o IhIø Psra",aph 7.4(e) w Ihout the
"'P,a.. wrlaen ~I 01 LaUOf ohd r:anoIJIute a "'*"- under the provtslono ot Psra lBp/l28 below.
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a. In.........; Ind.mnlty. '
a.1 Peymenl For In.......... lase. ahaI pi!)' lor IIIn&w8nco I8qLnd under Penlgraph a excepllo the extenl oIth. cosl attrIbuIabIe
10 DebIUty In&w8nco C8lried by Lessor under Penlgmph 8.2jb11n IIXCIISS 01 $2.000,000 per DCaIIT8I1C8. Pr.mIums tor policy periods commencing
'p,lor to or extending beyond the Lease I..... ahaI be _ed to ~ '" the Lease Ienn. Peymenl aheJ be mad. by Lesse. 10 Lessor
wiUlIn Ion (10) .... -..tog ,eceipt aI en --
a,2 Uabillty 'n"",once.
(a) Carried by u..... Lassaa ahaI- ond keap In t>n:o. Conmardal Gananol UabIUty Policy 01 Insurance protactJng L.....
end Lessor against _lor badly Injury, personal ~ end propetIy damage based upon or arising out 01 the ownership, usa, occupancy or
malnlenenœ 01 the PremIses end II..... 8ppur1eIw1I1her81o. SLChInsunn:e ahaI be on en 0CCUI11II1C0 basis p-g sJngle IImII CØY8rege
In en amounl not less Ihan $2.000,000 per 0CCUI11II1C0 will en "AddItIonal_""'" '" Lauoro 01 PmnJ... Endoreame",- end
Contain the -Amendmen' 01.... PvIIuUon ExduaIon EndorHmanI'" lor damage caused by heat. smoka or lumas lrom a hostDa lire, The
Polley &haD not cønIOIn any Inlnl-lnsured axdusIona es _Insured - ororgenlzaUons. buI shoJI Include "",eragalor Debility assumed
Und.r IhIa Lease ail en "Insured conInid" lor the padonnanca oIlsssaa~ 0idan-nIy obligations under this Laase. The limits 01 oaJd Insurance
&hell nol, -,limit the IIabiUty aI Lassaa,."...- Lessaa 01 any obIQaIJon hanlundat Ai k1surenca carried by Lassaa &haD be PrVnary
10 end nol conlrtbut"'Y ..... any ùnIar Nurenca canIad by Lnaor, wi-. .......... ahaI be COII8Idared axca.. "'urance only,
, : " (bj Can1ad by La..",. Laaaor Ihd maJnIaIn IabIIIIy Insunonca so _d In Pano¡paph 8.2(a), In -- to, and nolln lieu 0/,
... Insurance roquinKI to be - by Leua.. Lessaa ahaI noI be - .. en addIIIonaI - th.raln.
,; "',,~,3 ,Propartyln..........-BulldJng,~andR'nlal-
, I, (a) BoUdlng and 1m_.....18. Tha inIUmg Party ahaI_1RI keap In .... a po8cy or poIIc:Ias In ... nama 01 Lessor, wtIh
losS payable 10 Lessor, any groundleasor, and '" any lendar(s) InsurIng bss or damage 10 the ~ The amounl of such Insurance -
be equal to ... ,.. replacament - aI... P- as ... same ahaI - """'lima to lime, 0( the amounl required by eny Lenda.., "-'I In
ria ....nl more Ihan the t:ornmaIcIaIy - end avaIabIelnsurebIv .... -, U La_Is the In...rlng Party, how....r, La.... Owned
AlleralJons and UWIty installations, l!ade FixIurea, end Lessaa's personal propetIy 8haI be Insured by Le...e under Pare¡paph a,~ rather Ihan
by lessor, II the coverage Is svaIIabie end commarcldy ~I.. such po8cy or poIIdas - "'ore agolnsl aD risIcs 01 direct physl:alloss
or damage (exceplthe perils 01- andIO( esrthqueka unless required by s lendar(, including cove"'gelor deb", re¡novol and the enlorœmenl
of any Applicable Requlraments reqUrIng the upgrading, damoIIlIon, - 0( rapJacamanl aI any portion 01 the Premises as the rasuI
ole cove,ad loss. SaId policy or poIIdes shall also contaiI1 an agreed II8IuatJon ptMsJon In lieu 01 any """,,"rance cia"', waiver of subrogation,
and Inllallon guard prolactlon causing an incte..aln Ilia amJ8I property .......... coverage amount by e lactor 01 nolless than the ad usled
U.S, Capartmenl aI Lobor Consumer Prlce Index lor Ai Uoban ConsumaB lor Ihe ell¡> naar88l10 ""ara the P,amlsas aralocalad, II such
Insuranca coverage hes a daductl>la clause, Ihe daducWe amount shaI noI- $1,000 per oa:urranca, and La...ashall be lIabIalor such
daduc1J!>la amount In the ....nl aI an Insured 1.oas., .. ..
(b) Ranlal Value. The insuring Party Ihd cbIaIn and keep Iri Iorca a policy or policies In the nama of Lassor w!Ih loss pl!)'ebla "
Lassor and any Landar, insuring the loss of thelul/ Renllor one (1) year. Sa!; Insuranca sheI provide that In the evenl the Laasels larmlnalad
by reason 01 an Insured 10"" the period oIlndernnlly for such coverage shaJ be extended beyond the dete of the complallon 01 repehs '"
replaeamanl 01 the PremIses, 10 pnMde lor one /uI yaar'sioss 01 Rani from ... dala 01 any such loss. Said Insurance shaJI conlaln an ag,aed
...Iuallon p,ovIsIon In fJau 01 any cøInIUrence cia..., and the amoUnt 01 .......ge shall be adjustad annually 10 ",flect Ule projected Ran
otharwisa payable by lassaa, for... next IwaIve (12) mønIh period, Lessaa shaJ be Debla lor any dad- amounlln the ....nl of such loss.
(c) Ad/acenl Praml.... U the P",rnIsas are part of a larger buikfng. '" of s group 01 buildings owned by Lessor which a'e edjacent
10 tha Premise.. tha Lessee shall pi!)' for any Increase In the premiums lor Iha propel1y InsUliUlCO 01 such building or buildings II said Incra...
~ caused by Lassee's acts, omissions, use or OCCUP8l1C)' althe Pr.......
B,4 La....'s ProparlylSuslna..lnlo""pUon Ins",an...
and La...a ¿;;":;~~II~:;:'; U:;;il:'::;":';';;;;;;~~ ~-~;;"-;~;~';;';:'-;:I";::;/;I;'-;~~'o~~~
$1,000 par occurranca. Tha p,ocaeds from any such Insuranca'shall be ~mplaoamanrolPeråonaJ property, Trada Axtur..
and Lassae Owned Altaral!ons end UWIty InsIaJIaUons. ~ wrlUen avtdanca thai ouch Insuranca Is In force.
(b) Busl..~ In~ end maJnIaIn loss allnc:ome and 8XInI expanse Insuranca In emounts es wII
~:~~~~.""" nO ._~~~~~.Io_~,~~ Insured agaJnstby prudent Iasse.. In thebuslnass aI
~po.._"',""" .1 S"o,...'o ~.U""'g" I .u.om.'_, - "'1',..."'.0.... "'al"', '..1', or fom""'=-ereg. 01""'_""
-.peeJllad h..aln ale adaquat.Ie-<:oYeH......~ IfOperty, -"-~IIons-.-.1hIa La..e;. "
8,5 Insurane. Pollela.. Insuranca 'eqùlred he,eIn shoJI be by ~ duly IIcansad or admIIted 10 Iransact buslnass In the stala
""a,e tho 'Pieri1lsas are Iocalad, and maintaining durtng Iha policy Iarrn e 'GananoI PoIIcyhoIde.. Ra1Ing" of ella..1 8+, V, as ..t Iorth In the
mosl eurranllssua of 'Basrs Insurenca Guida', 0( such othar raIIng es møy be required by e Lender. I..aueeshall noI do or permlilo be done
anything which i1vaIldeles Ihe raqÚled Insuranca policies. Lauee shaI, prior '" the Sart Dale, delver 10 Lessor cartJllad copIas 01 poIIdas aI
such InSUliUlCO or cartlllcaies evidencing the axI&tanca and amounts 0I1he "",*ad Insuranca. No such polley - be cancelable 0( sub ed
10 modIlicallon except aIIer thirty (30) deye prior WIUIen noIi::a 10 Lessor. Leøea ehaI, et IeasIthIrty (30) deye prIor 10 the axpIretJon 01 such
policies, furnish Lessor wiIh avIdanca aI renawelo or '1n8urenca bk1dere" evIdendng rerIOWIIIlhereaI, or lessor may onier such Insurence end
d1arge the cost lharoallo La..... - amount ahaI be payobIa by Lessaa 10 Lesaor - demand. Such poUcIas shall be lor 0 Iono aI 01
laaslone year, 0( the langUlol the remaining tann aI this Laue, wI1Ich.-ls - . either Party _10110 procura end maintain Ihe Insurence
rÓ<¡ulred 10 be carrted by .. Ihe other Party may. boA - noI be required 10, ¡soan and maInIaIn ... same. '. .
" a.B Waiver 01 Subrogollan. - aIIecIIng IIf - rfghIa 0('-' Lassaa end Lesaor iacI1 hereby 'alease and rail... the
o<her, and wolve their anUra rlghlio '"""'" -( OS against... _,lor Joao 01 0( damage 10 Is propel1y arising out 01 0( incident 10 the perla
required to be Insured ogalnsl heron Tha dect '" ...", ,- end..-. ~ noIlmIIad by the amount aI Nurenca canIad 0( required; 0(
!Ii> any d_s appllcabl. hareIo. Tha - - 10 - IhaIl respedIvo proparty damage Nurenca carrIato waive 8Irf right 10
8<broga1lon IhaJ such cømpenIes møy - ogalnsl Lesaor 0( looaM, as... C888 rnoy be, 80 long ulha In...rance ~ noI_tad thereby.
1 B,7 indemnity. Exoapllor leuø(a IOU nagIganca 0( _oA ~ La.... ahaIlndeImIfy, proled, daIend and hold harmless
tho Premises, Lessor end Its agents, leuø(s masIer or ground 1auO<, par1naI> and Lende.., lrom and against any and oD cIaIms,loas aI rents
andIor damages, lens, ud] l11enla, penalUes, aIIornays' and -' foes, "'!*'888 andIO( - arising oul ai, """""'g, or In c:onnactIon
with, the us. andIO( occupancy '" Iha Promises by Lessaa. . any acIIon 0( procaadIng Is brought agaInsl Lassor by reason aI any aI the
"'..golng men..., La.... shoD upon noIi::a daland the same oIlooaM', - by c:ounsaI rauonably sallalactory 10 Lassor end La_1hd
coope",la willi La.... In sLCh do""'. Leasor need noI - IIreI paid IIf sud¡ claim In CMdar 10 be delanded or 1ndanVIIfIad.
B,a ExempUon 01 LaolOr 1- Uob,uty. La- - noI be liable lor ~ 0( damaga 10 the parson or goods, wares, mon:handlsa
or olhar property aI Lessao, La....'s oInpIoyees, c:ontrecIors, InvIIaas, aJ8Iomars, or any other parson ¡, 0( about the Promises, whether such
damage or Injury Is causad by 0( "sub !rom 1Ir., 8Iaem, eIactrtcity, 88, - 0( oaIn, 0( from the braokaga, laakage, obslructJon 0( other
defaets of plpas, lira sprinkle"" wires, appliances, pbnbIng. HVAC or ~ ""'e.. 0( lrom any _r cause, whether tho oaJd Injury 0(
damage ,esults Irom condIlJons arising - the Prarnlsas or upon - pottiono aI... BuÐdIng aI which the Premises are a pert. 0( ~om other
sources 0( places, Lassor shall no! be liable lor any damagas arIaIng from IIf sc:t or naglad aI any _r lanonl 01 Lasso<. Nolwllhalandlng
~sor";~~=.~~~ 01 this Leua, Lassor ohaI under no drcunet..:as be liable lor Injury 10 Leuae's busIneu 0( lor any Joao 01
8. Comag. '" Destruction.
g,' DeIlnIUons. '
(a) 'Pr.m/... Pert/oJ a......- aha. mean damage 0( de- 10'" Inrprovernents on tha p'a""~~1han Las...
Owned AllaralJons end UIIDIy Inslallallons, which can rauonably be ':: In Iix (B) monlhs 0( leu ~om the dale Of:~ de~
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-:..or - noCI/y'Lu.ee .. wrllklg wIIhin IhIt1y (30) days !rom 1110 daIo 0/110 damage 0( - u 10 whelhor 0( noIlhe damage Ia -
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(b) -P- ToIaJ 1108.....-" - ...." damage 0( - 10 1110 P- _than lesae Owned """,,,Ilona and
UUUIy Inslaladonl end Trade FIxturu, which cannoIl1I8SOß8bIy be ropaIt&d.. six (6) II1OI1!ha 0( less Irom II1e daIo of II1e damage 0(-
Lessor &hel notify La.... .. wriIIng wiIhIn IhIt1y (30) days In>m Ihe, daIo 0/1110 damage 0( de- u 10 whelher 0( noIlI1e damage Ie -
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(e) -Ineured L..." .... meen damage 0( -,.....,.......... en 1110 - _than t- Owned ,,"eratione end
UIWIy InsIaJlalJone end Trade - which w.. caused by en ..... n>quInod ,. be - by 1110 .......... - In Penlg..",. 8.3(0),
lnespectJve 0/ enr dedudibIe _Is 0( """,..ge ..... -- ,
(d) -lI8plocemonl Cool" ehaII...." 1110 -10 repal< or rebuId II1e knplovemenll owned by laesor ellI1e lime o/Ihe 0CCUI1W1C8
10 lI1e1r condition exbtJng ImmedieIeIy prloo' IherelO, IndudIng demolition, - I8IJ1OVBI and upgn¡dlng required by II1e ape..1Ien el AppIcabIe
Requlremente, end wtIhout deducdon for de l<8CiatJon. " , '
(e) "Hu.lird""e Sübelanco CondW..." ehaII ...." 1110 0CCUI1W1C8 0( -ry 0/. condIIIcn'k1YoiW1g 1110 _nee 01, 0( e
con_lien by, . Hozonloua - u dellned In PonIgrop/16.2(o), In. en, 0( uodar II1e PromI&oa.
9,2 PruIIoI O....ge . IIwnd Laoo. ". Premieeo PruUeJ Dernogo II1eIIa en Ineured l.oee DCaU8, Ihen laesor ohaJI, eI Lesson
_nee, ..paI< ouch damage(bul noI Lessee'e ThIde - 0( L..... Owned - en4 UIiIIy 1nsIoAo1ion&) .. 8000 .. rooscnobiy )
possible end IhIe Lesse - continue In fuI fon:o end eIfecI; provided, '-, IheI L..... 8haI, eI Lasor'a eIedIcn, rneke 1110 repoIr 0/ ..., ,
damage 0( - Ihe - _10 repal< of which Is $10,000 0( leu, end, In ouch IMInI, laesor - rneke enr oppIIcabIe Ine<nn;e
praceede .- 10 Leaeo en . _e - I:>r IheI - N~ II1e foregoing. III1e n>quInod Ine<nn;e wu not In fon:o
0( Ih8 Jne.nnco proceeda ore not euflIcIen 10 eff8c:I ouch 18p8Jt, II1e Ineurtng P8r1y - IfÐI11pÖy COOItI>uOeIl1e Ihcf1oge In proceeds (urropI
.. 10 1110 deductible which Ia I.aeaoe~ ruponeI>/IIIy) .. and when required 10 "",,*Ie eoId repon. In II1e IMInI, ""'""", ouch ehor1oge -
duo 10 1110 IocIIheI, by reaecn 0/1118 unique ..... 0/1118 knproyomen e, U replecament COOl - .......ge wu not .........aøJy
re......b/e end ._, La- - hoW no oÞIigeIIon 10 P"Y I:>r 1118 ehor1oge In Ineurenco pnx:eede 0( 10 fuIy ...... 1118 unique - 0/
1118 Premises unIe.. Laesee provIdae laesor WIth 1118 lunda 10 """,r aeme, 0( edequoIe .......... 1hereoI, - ten (10) days IoIIowtng rece!;>!
0/ written notice 0/ ouch Ihor1ogo end requaet lherefor. I LeSaor - eoId lunda O(.dequeIe ae$urence Ihereot wilhln eoId Ion (10) day
period, lI1e porIy reapansJbIo for mokJng tho repeilO - compIele thom as 8000 .. reuonobly poaI>Ie end IhIa Laese shoJI remeln In IuI fon:o
end .Iect 1 ouch funds 0( ossuranœ ore not recelwd, laesor moy nevorlheless elect by wr1tl8O noIIc8lo Lesaee wiIhIn len (10) days lI1ereoller
10: (I) rneke ouch ",,_lien end repolr.. Ie convnerdoIy reuonob/e wiIh laesor peylng enr Ihcf1ogo In proceeds, In which ca.. Ih!s Lesse
shel remein In lull fon:o en4 effect, 0( he.. IhIa La... lennlnale IhIt1y (30) days tho...fter, La.... - not be enIUIed 10 relmlx"..ment 0/
8Oy funds con_led by loesee 10 repal< ony ouch damage or da&trudJon. Premisea Portlel Oemoge duo 10 flood or ear1hquake shel be 5Ii> ed
10 PonIgrop/1 U, notwilhslandlng Ihat II1er. moy be oome - """'ge, bot II1e nel procoeda 0/ enr euch Insurenca shoJI be mode
available for Ih8 rapoJro I mode by _r porty.' . , ',' . - .
9,3 PortJoI O.moge- Unlneurod Laoo. I. PremJaa, PruUeJ Oemogo lhal II nol en lneuled'Loae oc:cura, Lr1Iosa cauaed by. negigent
or wUUul ad 0/ La...e (In wI1Jc ¡...en! Lesaee shel rneke Ihe repeilO al L....e', expense), La"", moy ellhe" (I) repal<,uch damage as 8000
.. reasonably possible al Lasser', _nae, In wI1Jc ¡ avenllhIa Leaso - tor1IInua In fuU fon:o and.1fact. 0( (1IJ lenninale IhIa L.... by giving
wrltt.n notice 10 L....a wiIhIn IhIt1y (30) day, alia< recalpl by Lassor ellrnowlodg. 0/ Iho oa:urrenIo 0/ ouch damage. Such lermlnolion -
be affoc:tJva sixty (60) day,loIIowIng Ihe dala 01 ouch notice. In ilia ovonllataor "_10 lenninalelhla Laese, L..... &haJJ hevelho riglll wiIhIn
Ion (10) days alia< recelpl 0I1he lennlnollon noIico 10 give wrlttan noIico 10 Leosor 0/ Loa...', commttmenllo pay foe Iha repair el such damage
will1out ra_ment hom Lessor. Lossee &haD provide La"", willi eoId ftn:ja or aaUslac1ory assurence lI1oreel wühln IhIt1y (30) days alia<
making ,uch canvn/bnenl In auch evenlll1le Leaso - conUnue In lull ..... and affect, and laesor ahaU procoed 10 rneke such repalro as
,oon.s raasonebly POll"". .ftor Ih8 required fundo "'. .vellable. "Le...e doe, norrneke Ihe required commJImont, IhIa La... shoJIlennIna..
.. 01 111. dale opoclflod In lI1e ..nnInollon notJce,
9.4 To'" Do.lruellen: NolWlll1,lending enr oIhar provision herao/, I . Pr.mIses Total 0astrucII0n occurs, IhIa Laa.. &haD lennInoIe
sJx1y (60) days IoUowlng ,uch o.sliucU,,1I. II ilia damage or d.sUudJon was caused by lI1e gross negligenco or wUUuI misconduct cl La....,
Le"", shoJI he.. tho righllo rOCOV8r La_, damage, Irom l.o...a, exoept.. provided In Penlgnoph 8,6.
9,5 O....U' Neat End alT..... 1 al enr uine during Ihe lest "" (8) II1OI1!ha ellhJo La...1hora fa damage foe wI1Jc ¡ lI1e _10 rspa¡-
..ca.ds on. (1) monIh'. Baaa Rent, wholherO(notonlneurod Loss, laesor moylennlnota IhIa Laese.ffocIIva &bdy (SO) days Iolowlng II1e dat,
01 occunance 01 ouch damage by giving . -an termlnallon nob 10 Leaaoo wiIhIn IhIrty (30) days oft.r lI1e da.. el occunenee 0/ such
damage. Notwllhstandlng 111. Iorego/ng. . Loa..a ellhol limo has en axo- opllon 10 axIand IhIa L...e or 10 pwdIo.. lI1e Premluo. I1on
Lellaa moy pr"'MlIhIa Lea.. by, (.) axordolng ouch opIIon end (b providing laesor with enr Ihcf1ogo In Inaunonce proceeds (or adequaIo
assurencalhereol) n..ded 10 make Ihe rapaJro on or belerell1e earllar 0/ (I) Ihe daIo wI1Jc ¡ fa len days .ft", le...e', receipt 0/ Lesaot, wriIIan
nab purporting 10 lannlnole IhJo La..., 0( (II) II1e day prior 10 lI1e dale ~ wNch ,uch opIIon axpRs. 1 La...e c1IIy axon:lall euch opIIon
during 6UcI¡ pariod and provldo,laesor wllh fundo (O( adequala .....renca II1ereol) 10 COYar enr Ihor1oge In lneurenca proceeds, La"", aheI,
al Las"", commorcleUy reasonoble axpenI8, repal< euch damage.. 8000 .. rouonabIy poaaR¡Io and IhIa Laese shoJI continue In Jut fon:o
end eloct. II La...e ran. 10 axorclaa auch opllen and provide auch funds 0(""""'" during ouch period, lI1en IhIa le,.. shall ..- en
lI1e dale apocUied In lI1e lennlnallen notice end I.aeaoe', opIIon - be -.gu/ahed.
U Ab"""nl 0' Ren~ lellM" RornedIae. ' ,
(a) __L In Ih8 event of Pr.mieu PruUeJ Damag. or Pr....- Total DeatrudIon 0(' Hozonb.. &beIonca CondIdorII:>r
wNch La.... II not r8l XX18lbla under IhIa La..., II1e RenI poyabIo by Leaaoo I:>r Iha period required I:>r 1110 ropU, ",n_1Ien or -
0/ ouch damage - be oboled In propor1Ion 10 111. degr.. 10 wI1Jc ¡ Laesee', 1M 0/ Iho Premieeo " 1n1poJred, but not 10 exceed 111. proceeds
re..1wd !rom tho RanIo/ Value Ineurenca. AI oIh8r obIgaIIOno of I.aeaoe - - be por1ormed by loesee, and laesor aheI have no
IabWty for enr such damage, --. romodIeIIon, ropU 0( roalorellon urropI u provided"""" " '
(b)RomedIoo. 'I laesor - be obIgeIed 10 ropU 0( - ... PremIae, and - not comrnanœ,ln . auboIontJo and
meaningful way, ouch ropU or resloretlon wtIhJn nlnely 1110) days oItor such oÞIIgadon - oa:rtI8, La.... moy, eI enr Uma prior 10... .
commoncemanl 0/ ouch rapalr 0( raeIonIlIon, give ....... noIIc8 10 laesor and 10 etrt LendaIO 0/ wNch I.aeaoe has 8duaI noIIco, 0/ Leaeoo',
Mellon 10 '.rmlnalo IhIa L.... on . dato notloae than abdy (60) days foIowIng ... giYIng 0/ ouch noIIœ. 1 La.... gIveo ouch noIIco and ouch
'~=:;:=~~~~{:)~~~~ø:..~In~::e~':~~:-":'~U:~. !
ilia IJl1COf1d/Uono/ eulhorlz.ollen 0/ 1110 preporellon o/tho n>quInod plena, 0( 1118 bog/nnIn¡¡ 0/ ... 8duaI - on Iha Premlae" -... ,
OCCUIO.
9,7 TennJnalion-Advoru:o Poymen;., upOn -- 0/ IhIa Leaao pureuent 10 Pore¡,oph 6.2(g) 0( Porogn¡p/1 g, en equiobIe
adjUiIment - be modo conœming edvenœ Baeo RenI end enr oIha, edvenœ poymenIa made by Leaao.1o I.aeaor- laesor -,In-.
r.turn 10 le,... 10 much 0/ L.....', SocurIIy Oepoaa .. has not been, 0( Is not Ihen requOed 10 be, used by le_.
u, ,WialV8 S""u"e. La..... end Le.... .gr.. IheI ... ",ma 0I1hia Leaao - govern 1110 elloct 0/ enr ......,. 10 or ..,- Q
ilia Pramlso, wIIh ral >8d 10 Ih8 lennlnallon o/Ihie Lesse end hereby wolve 1110 provlalono 0/ enr ",e..nI or lulure llalute 10 Iha ....,..
;,ccn,lolent hotewllh. '
10. R.oJ ProportyT...,. .
10.1 Oel/nllJon 0' "Reel PRlportyT.....- A8 uaed hereln,tho term"RaeI ProportyT...," ahellnctude enr Iorm 0/ asaaaament; rael
....Ie, g.neral, apocIeI, ordInery 0( axtraordlnery, 0( ranlo/Ievy 0( lox (oCher than 1nhotItenœ, poraonollncome or eSlate 0); 'OY""","
bond: .nd/O( Icanao J.e/mpoaed upon or levied agoJnel enr legal or equII8bIe kUreal 0/ La_In Iha Premises, La_, 1)0, r Income
lI1.refrom, endIor La_, bus/nou oIloasJng. by enr rwIhoriIy hevlng 1118 <ired 0( Indirect """-'" 10 ... and whore 1110 d A
' PIoGE,
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,,¡u¡ refto", IC8 ID Ihe BuIlding -... and whore Ihe proceeds 10 QOl1OfOIad are ID be applied by Ihe diy, CW'1Iy or oIher local aemg euIhoriIy
01 a ~,.LJocII... - - lI1a Pr...... are _'od. The lerm -Reel Property Tue.- sheI eJso k1dudo any lax. fea, levy. essessmenI or
cha,.., or .nt - lhereln, ~ by reesan 0/ """"'" occurring <bing Ih8 larm 0I1hia Leasa,lndi.dng but nol IImJIod ID, a å1engaln
lI1aow~oIlhePrarnIsea? ","'-"Tf
10,2
..
(a) Payment o/T..... La.... ehaI pay lI1a Real Propany Taxae - 10 Ihe - during Ihe larm 0I1his Laue. &i> ect
10 Paragraph ID.2(b), at such payments shall be made al feast fen (10) doya prior 10 any --dele. Lassea &hall promptly IumIsh Lessor
..ifI¡ satisfado<y avIdanca lhal such Iaxas ha.. -. paid. II any such lues - co..r any period 0/ lima prior 10 or altar lI1a u¡>bIIon or
lar- 0/ this Laesa, Lessea'a ohara 01 such ..... shaJ be pronded 10 cover only lhel por1Ion at Ihe lax bill eppIIcabIa 10 Ihe period I1aIII1Is
La... Is In aIfad, and Lessor shaI roImburIa laasaa lor any OY8rpay11>1ß. II L....a ahaJ lalla pay any reqUrod Raal Propar1y Taxaa, Laosor
shall ha.. Ihe right 10 pay Ihe sarna, and Laseaa shaI ralmbunia Lassor Iharolor upon demand.
(b) AdvonC8 PaymenL In Ihe ""'"' Lessea Incwa a leIa char¡¡e on any RanI payment, Lassor may, .. lae&o(. cpIIon. """""Ia
tha current Real Pioparty Taxaa, and requIre IhaI such Iaxas be paid In edwnce 10 Lessor by Laasaa, allhar: (I) In a ~ ..." arnounI equal 10
tha Instalment dua, .. laut IwanIy (20) day& prior 10 Ihe - daInquanc:y dela, or (i) monthly In adlrance ,,¡u¡ the payment 0/ lie Basa
Rani. II Lessor elects 10 require payment monll1ly In arMInce, the monthly paymenl ehaI be an arnotu1I equal 10 Ihe arnotu1I 0I1he _tad
Instalment 0/ ..... divided by Ihe number 0/ monlhe rameInIng before Ihe rnonIh In - eaJd InsIaJIment baccmes dellnqUenl WIlen Ihe actual
amount 0/ Ihe eppUcabfe lax bills known, the ...... 0/ such equal monIt1Iy adlrance ~ ehaJ be adjuslad .. required 10 prtMde tha
Iunds needed Ia pay Ihe _taxes. UIhe...... coIJadad by Lessor Ie lnsuItIcIentlo pay such Real Propany Texaa when c1Ja, Leuaa
' - pay Lessor, upon demand, such eddWonaJ ..... .. are nacaowy 10 pay such obUgelIona.û AI moneys paid 10 Lassor WIder this Perogroph
mI!Y be InIennIngled with oIher monaye at Laaaor and shaJ f1OI bear -- In lI1a ""'"' 0/ a Breach by Lassea In the padormance 0/ bs
obIIgatJans under this Laesa, Ihen any baJanca '" hB>da paid 10 La- Lnder the prOYtsJona 0/ If1Ja Paragraph may.. tha option 01 Laesa. be
"aaled.. en addlUonaJ SecuriIy DepoeIt. .'
10,3 Joint AaaeaarnenL lithe P,"mllaa ere not aaparataly -. La....~ Ieb8ty shall be en equIIabIe Pri>por1Ion 0/ Ihe Real
r:.:."r.= ~;=a~~ ~~ ~~~ '::'~:.:::..~~m:= r=~~ by
10,4 Poraonal PropartyTuu. La..aa ehaI pay, prior Ia daInquanc:y, aU Iaxas - ageIneJ and lIMed upon Laasaa Ownod
Atta",Uona. UUIIIy In5laJlallDna, Trada Flxluru,lumIahings, equIpment end at pa_aI property 0/ La..aa. When poaeJbIa, La..aa BhaI OIIU..
auch property 10 ba aaaaaeed and bWad aapare'taly 110m Ihe real property 0/ L8B8Dr, II any 01 L-.~ eaJd parsonal property shaD be ......ad
with Lessor'. real property, Laasaa shaJ pay Lassor Ihe taxe. at~ 10 La..aa'a property - Ian (10) day& after racolpJ 01 a -an
&latament. , ,
11. UWJlla.. L...aa BhaI pay lor all weIer, gas, hoa~ IgIII, power, leIephona, Irosh dJsposaJ and other uIIIl!Ies and aarvIcas auppiad Ia lI1a
Pr""",logarharwllhany taxearhareon. II any such ..rvtcaa are not_'aly metered 10 Laasaa, La.... BhaI pay a reasonah a prqiorUon,
10 ba datarmlned by Lassor, of at charga. o/n!Iy malarod. , ' ,
12. Aulgnmanl and SublettIng.
12.1 Laa,,"a Conaenl Requt-
(a) La...a shall not vo/unlartly or by ope"'tJon 0/ Jew aseJgn, lransfer, rnortgege or ancumbar (co/iodively, "aaalgn or
a..lgnmant; or ,ublat aD or any pari of la&&ae'a InIereslln this Laasa or In Ihe Promisee without Lassor'a prior _an consanL
(b) A changa In the con"'" of Lass.. shaJ conslltuta en assIgnmenl ,aq""1ng con&anL Tha transfer, on a cumulatJve basis, 01
twanly-five percen' (25%) or mora 0/ ilia ",ling control 0/ La...a &half constitu1e a changa In control lor this pusposa.
(0) Tha Inwivament 0/ La...a Dr Its ...... In any "anaed!on, or aarle. 0I1ronaadtona (by wr¡ 0/ merger, &ate, -,
ßnanolng, uansfer, feva"'gad buy-oul or olherwt.a), wilalllar Dr not a IcrmaI eaeJgnmanI or hypothacotJon 0I1his La... or La...a'a ....Is
oc:ours, - rBSuIts orwll result k1a reduc:IIon 0/ Ihe Nol Worth of Lessee by en amount gr.-than twanly-liw percent (25%) 0/ au::h Nol
Worth as i was raprasanlod aI Ihe lime o'tho exec:utJon o ,thIs Laesa or aI rha lime 0I1he moot reoenl ass gnmant 10 - Lassor hes
consanled, or as It extsts Immediataly prlor ID aatd bansadIon or .ansadIans conslltuilng suc:h radudJon, whfc:hawr was Dr Is greater, ohaI ba
considered an ...Ignmanl 0/ this Laesa 10 whtc:h Lassor may wllhhoId Ita consanL' "Nat Worth 01 Laa_" ohaJ mean ilia net worth 0/ la$saa
(excluding BIrt guarantora) aatebilshed under ganarely eocaplad 8OCOIM1Iing prfnoIpIas.
(0) M ...ignmant or eUblaUing wIIhout consent ehaJf, .. L.esior-a opoon, be a Delatdl ourobla altar noIIc;e par Paragraph 13,1(0),
or a no"""ebfe Bruch wllhou1lho neoaully of any nolJc:e and graçe pe- II Laasor atecta 10 ueal suc:h unepprDY8d ...lgM1ent or 8<bfeWng
as a nor1OUl8bIe Breac/¡, Leosor may allhar: (I) terminate this Le..a, or (J) ~ IhJrty (30) deya wriIIen nolJc:e, Inor..,. ilia monlhly Basa Rent
10 one h_ed Ian parcent (110%) 01 tho Ba.. Rentlhen In a"oo1. Further, k11!1a evonl of auch e,eac/¡ end ronleJ .d uslmenl. (Q ""'puoœasa
plIca 01 any opIion 10 purchaaa the Pramlla. bald by Laasaa ehaJ be BIb ad Ia aImIIar ad uslmenllo one hundred ten per""nl (110%) 01"'"
plIca prevtouoiy In a"ad, and (i) eI fLœc and non-lixed ,anIef edJustmenla od\eduled dwlnp rha remalndar 01"'" Laaoa lerm - be i1c:raased
10 Ona HiJndred Tan Paroant (110%) 01 the ec:ftedufed ed uoted rani.' ,
(a) La...a'a remedy'" any breac/¡ 0/ Paragraph 12.1 by Laaeor BhaI be ImIted 10 ~Iory damegao and/or In undhoe _f.
12.2 Tenne and CondJ1lone Applleable ... Aaalgrunent and Sublealng.
(a) Ragardia.. 0/ Lauor'a consanl, any eaaIgnrnent or BübIeIIIng shall not (I) be - wIIhouIlhe expra.. wr1IIan ~
by such eao9Iea or aubIasaee o Ihe obiIgaIIono 01 Laseaa under IftIs L-. II) reIeaaa Lassae 01 any obiIgatIona hereunder, or (W) alerlhe
prtmary IabiIIy 01 Lassae for Ihe payment 01 Rant or lor Iha parformenoe 01.., - obIgaJIona to be parformed by La...a- ' .
(b) Laaeor mayer:œpl RanI or parlormence 01 Leae..~ obIgeIIono from Brrf parson oIhar than L-. pending -- or
dIsepproveJ 0/ en UIignmanL - a cleloy In ... eppmvaJ or diaa¡>proveI 01 such 8B8lgnmenl1IO : tho ea:epIarIC8 0/ Rant or ~
shaI - a ....... or 8BIoppaI oIlea8or'o ~ to -. III .......... for Lassae 'e DeIeIJIt or Brear:h.. , ,
(0) La_a conÍenIlD any ~ or eubIetIIng ehaI 001- a oor B8f1I to Brrf IIÐaequenI usignmanI or BIbIaUk1g. ,
(d) In Ihe ""'"' 0/ any DeIauII or - by Lassae. Laaeor - prooeed dIredIy 8g8Ó1eI Laaeea, any GueranIoro or anyone ..
rasponatia ." Ihe parforrnanoe 01 Laiaee'e obiIgaIIono -!hie L-.I-xã.dng any 8BI91ee or -. wIIhouIlIreI uheuaOng la8so(a
ramadlaa agalnel any Dlhar parson or enfIIy raaponltila lharalora 10 Laaeor, or any aaourIy heid by Laaeor. .
, (a) Ead1 reqUell lor conaanIlD an usignmanI or aubIaIIing aheI be k1 writing. ~ed by InIormetJon - Ia L.-or'a .
dalermlnatJon as Ia tho Ønanr:iaJ and opanIlionaI r~ and ~.. 0/ Ihe propoaad eaeJgnaa or _a, I-xã.dng till 001
lmiled ID Ihe - uae an<Vor required modIIi:IIIan 0I1he PremiIaa, 18<'f, togalherwlth alee 0I$1,DOD orten poa:anI (10%) at... amnI
monthly Baaa RanI eppIIr:eh/e ID the portion 0/ the PI..- whtc:h Ie the BIb ad 0I1he propoaad eaaIgnrnent or -.e, whIohaver 18 ~,
.. conaIderelion lor La_a ~ and proc:eaefng eaJd requeal.' LNoee agra..1D prOYfda Laaeor with such - or eddWonat -
and/or OoaInentetion as mey be reuonably requealad. , ,
. . (Q'Any eaaignaa 01, or _a -,Ihia Laaee ahaI, by reuon "'-ling such usignmanI or -.r.g Into such"-,
be daamad 10 have 8BI<IrI18d and agreed 10 conIorm and comply with eer:h and """'" term, -~ condIIIon and obiigatJon harm!:> be
obaarved or parlormed by La.... during Ihe I8rm 0/ eaJr eaeignment or -, olhar than such obIgeIJona as are contrary 10 or-
wllh prDYlaiono 01 en eaaIgnmant or aubfeue to - Laaaor haa aper:iIIoeIy conaenled Ia In wrlIk1g. ,
12.3 AddltlDnal Tarma and CondlU- Applloeble to Subletting. The IoIIowtng Ierma and ocndIlIon8 BhaI apply 10 any Bl.t>lalilng by
Laa.aa 01 at or BIrt pari oIlI1a PI..- and ahaJ be daamed Indurfad In .. _a -this Laaee whother or not expraaaiy k1é:orpoca1.ed
lharaln: See Addendum 12,3(a) , '
(a) La...a hereby ......,. and II8neIeo-a 10 Laaeor OJ 01 ,--" irdarell In II RanI peyebfe on any auble_, enO Laaaor -
COÜ8d auch RanI end e¡>p'y..... "'",d La....'a obIgaIIona...-1hIe Laaee: proWled, -, IhaI ...... a e,eac/¡ shaJlë""ur In ""
perforrnanoa 01 La, ".a'a obiJgellano, La...a may coIad aeId Rant. Laaeor ahaI nor. by reuon 0/ the ""ap.g or any~oI 0<d1
oubIaue, nor by reuon oIrha coIeaIon 0/ Rani, be deemed labia 10 Ihe S<.t/eaaea lor any faJUa 0/ Leaeaa Ia parIorm and with ony
01 Las..a'a oèAgallDna 10 auch _a, La...a hereby 1rr8YDO8bly aulhor1zas and dlrecta BIrt such BI.t>Ia...a, ~ raco , '"~
, PAGE 7 ,1"""'\""" "",P:-:::
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Irom u..or itaIJng lhaIa Braad¡ uIoIa In Il1o porbmance 0/ lasaN'a COIgaIIona -Ihb Uaaa, 10 pay 10 IMsor all Rant due and ID-
due -Il1o subIoasa. SubIauae shall filly upon any - nodca 110m lNsor and shall pay aIIRanlaIa Las.or without any obIigabcn or'righl
10 ioquiro as 10 whoI!>« - Broach uIoIa, ~ any cIoin 110m Lassoo 10 Il1o c:onIraty. - '
(b) In Il1o -.I 0/ a Broach bv ~ l8uor may, aI II opIIon, roquira aubIauae 10 allOm 10 Leasor In which ....,,¡ laa&or shoJ
undertako Ihe ObIigaJIons 01 Il1o 0IIbIasa0r -1UCh1Ubloasa 110m Il1o lime 01 !he axardse 01 - opUon 10 Il1o ~- 01 0"'" -"'0'
provided. '-"wr, lBssor IhaI not be IIabIo "" any pIOpaId...... or'oacuriIy dopooII paid by ouch -..... 10 ouch _0- or "" any pro;
ColoullsorBread18solouch- ' , ' ,
fe) Ant....... reqUiring ""', ~ 0/ Il1o..-.... a _sa ahaJ""" roquIro Il1o coosant oIle$ooc
(d) No """"0 ohaII further usign« - aI« any part 0I1ha Promisao - La_a prior -on conoont
fo) Las.or shoJ - a CtJf1f 01 any nodca 01 DofauI or Broach by La...o 10 Iha _0...0, who shoJ haw tho n9'" ID QUO "'"
Coloull 01 Lassoe within !he grace period, U ~ ¡pec:Uiad In ouch nodœ. Tho -0"" ohaIIhavo a nght 01 ",imOOrsomont and oIfsa Irom
and a¡¡ainst l....o lor any ouch Detaulls curocf by the oubIossae. "
13. Delault; Broach; -
13.1 Default; Bruch. A -DelouU" 18 - as a .... bv Iho lassaa 10 comply with « pert>rm any 01Il1o IB- co.w>anls,
""""'lions or ruin undar IhIo laasa, A "Bruch"1s - as Ihe oa:unance 01 ona or moro 01 tho IoIIowing DetauOs, and tholaJ/uno oIlassao
10 curo such Cotault within an¡> a¡> >IIcabIo l8C8 poriod:
fa) The obandonniont 01 tho Pr- or !he vocaIi1g 01"'" "-- - prtMd.Ing a c:omman; a y rlUlOOf\Ob ø IoveI 0/ sar:urIIy,
or whata "'" """""go 01 tho I!f1'POl1I' Inawanco - In Parograph 8.3 Is aopardizocf os a rosuJ1thorool, or wlthoul providing rauonabIo
assuronc:ao 10 minimize polanllal V8ßdaJIom. ,
(b) Tho ...... 01 Leuea 10 mob any payment 0/ Rent« any Sor:urIty Depooa requInod 10 be mads by L.....lier""",,",, """thar
'" lBssor or '" a third J>8'1\\ wtum due, ID provIdo - -... 0/ Inourance '" 0UlII1}' bond, '" '" tuJIiII any obIigaUon under Il11o Laasa
which ondangora '" ........ 110 « propal1y. -. -1aIiJra conIIræo "" 0 parlod oIlIvaa (3) buslnou days IoØowlng wnllan noIJca 10
Lossae.
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(e) Tho .... by Leuea '" provIdo (I) - wrtaan -... 0/ ~ with Applicable Roquireman1a, {II) Ihe sarvlca
conlrada, (W) "'" rosdsslon 0/ an unauthoItzocf uaIgnman1 or oubIol!i1g, (1\1) a Tonancy S1aIamonI. (v) a raquastad subordInation. (vi) ovIdanco'
concerning any guaranI}' and/or Guarantor, (vi/) any document roquaolocf under Paragraph 42 (oasamonls). '" (Wi) any othor documanIa!Ion or
lnIormaUon which La- may rouonabIy requ ra 0/ La...e under Iha Iorma 01 this lo..., """'" any such faJluro conllnue, /ot a poriod oIlsn
(ID) day, following -an noIIce '" La...a,
(d) A Cofaull by La...a .. 10 the lonna, -Is, c:ondIIIone '" provlalona 0/ IhIo I.eue, '" 0/ tho rule, adoplocf undor
Paragraph oW I1orool, oIhor than - dascrlbed In aubpluagraph& 13.1 (aI, (b) '" (e), abovo, -fa such Defaull conllnua. lor a per1c'!l 0/ II¡Jr1y
(30) days a""r wnnen noIIce; provIdod, however, .... ~ Ihe nann 0/ Leasao'. Cel.un Is '""" lhal-more than II¡Jr1y (30) days ore raasonab y
requlrod lor.. cure, than I shall not be doomed 10 be e Bread1 U Lassoe C<I<tI/1Iancoo '""" curo within said II¡Jr1y (30) day ponod and there.nor
diUgonUy prosecule. IIUdI "JrO '" cornpIallon, ,
(e) Tho oocurronce 0/ any 0/ Iha i:>Iowiog - (I) the making 01 any general orrangomanl or -gnmanllor Iha benefil 0/
crodl"""; (II) becoming a "dablot'.. dafinad.. 11 US-C. § 101 or any 0I.CC8S$0l s1atuIBIheroIO funlass,ln Ihe ca.o 01 0 poOOon filed agalnsl
La..oo, tho same 10 - within &bdy (SO) days); (III) Ihe appo/nImenI 01 a lrusloo '" racaJvar 10 lake _ion 01 sub.1ar1IiaIy ail 01
lasseo'. ....Is Iocalod elthe Promisao '" oIl....o'alnlerosl..1hIo Lease, whoro possoaslon Is nol reslorod '" lo..oo within thlrly (30) days;
or (N) tho ollachmen~ oxea.IIon or other judlclel salzuro 01 oubsIenIiaØy" 0/ lo...o',....1s Iocalad ollho Promlao. or ollo..oo'. ""0.1 In
Ihis La.so, whoro such salzuro 10 nol dlsdwgocf within II¡Jr1y (30) days; providocf, howover, In the IMInl' lllal ..y provision 0/ !hi.
.ubparagraph (0) Is =ItaI)' '" any appllcablo Iew, IIJd¡ provision shall be 0/ no 10"", or offecl, and nol allect tho validity 01 the romainlng
provisions,
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(Q Tho dlscovory IhaI any - - 0/ Leuea or 0/ any Guarantor gIvon '" La- Wla malarlally !aJao.
(g) litho porlonnanca oIla...o', 0bII¡¡aU0ns undar IhIo Lease 18 gUOIanlaocf; (I) Ihe death oIa Guaranlor, (II) tho 10nninaJlon 0/ a
Guoranlol'. i.bUlly with rospOClIa IhIa leese oIhor than In occordanca with tho Iorms 0/ IIJd¡ guoranly, (IIQ 0 GuoranIo(. bocomin¡¡ InsoIvonl
or tho subjecI ole banJuup1cy 1iIng, (1\1) . Guoranfo(a rofusaJ 10 honor the guaranty, '" (v) . GuaranIor's bread! 0/ Its guoranty obligation on an
anllclpatory bosla, and Lassoo'a leØuro, wIIhIn sbdY (SO) days following wriIIon noIIca 0/ any IIJd¡ "","I, '" provido wrillan aJlornative ossuranca
or iecusily, which, wh.. coupIocf with Il1o thon ox!sIi1g rosourca. 01 Laasae, oquals '" oxcaods !he combined Iinanc:IaJ rosou"",. 0/ Lesso. and
tho Guaranrors lhel oxIaIed allha lime 0/ oxecuIIon 0/ IhIo Lease.
13,2 .omed"'.. II Leuea faJls '" perJorm any 0/" affirmaJIvo <1Jdea or obIlgoUona, - ten (10) days aI1er wrlllen nolJca (or In caso
01 an omarganey, without noIIce), lesaor may, aI II opIion, perJorm IIJd¡ duly or obIIgaUon on Leasee'a bohaJI. k1dudIng bul nollimlled '" Iho
oblaining o! roasonably roquirod bonds, k>aurance po8daa. or govolMI8nIaJ -', pennlta or approvolo. The =Is and oxpenaea 01 any aud¡
porlonnanca by leuer ahaJ bo due and payobIe by l.eaaee Upon r~ 0/ - thor%t. II any chec:k given '" La- by Lo.... ..... not
bo honorod by the bank -- wI1Id¡ lis drawn, louor, aI .. opOon, .-..y roquir. aIIl",uro _nIl '" be mode by La.s.. 10 be by cuhIa(a
chock. In Ihe ovent 0/ a BrUch, l8uor.-..y, with or wIIhouf Iur1het noIIce or demand, and - limiting louor.. Iho oxordsa 01 any tight or
rornedy which l.ouor .-..y 110... by reaaon 0I1IJd¡ Breach; "
(0) T_1e Laaaoe'. rtghIla --"'" 0/ !he Pr- b¡> any lawful nioana, In which case IhIa I.eue ahaJIlanni1aIe and
lasaN ahaI kM1odIalely IUII'I Idat poaaesaIon 10 l8uor. ..--l8uor shoJ be onIJI ocf 10 r"""", 110m Lessao: (I) Iha unpak Rani
which hod boon oarnocf allho lime 0/ lannlnatlon; (I) Il1o worth aI Ihe lime 01 sward 01Il1o - by which Ihe unpaid rani which would havo
been oarned aJ1or IermlnaJlon _!he lime 0/ - oxœoda Il1o - 01- ronteIloN lhallhe Lassaa - could haw beon rouonabIy -
ovoldad; (III) !he worth allhe lime 0/ _d 0/ Il1o - by whlchlhe &q>OId rani lor the ~ 0/ ¡two !arm aJ1or ... lime 0/ 0- -. " ;
!he - 0/ - ronteIloN IhaI "" L,uM - could bo I8UOC1IIbIy MkIad; and (Iv) any - -'*-"'Y 10 -- ~ ' ¡'
lor aI !he - ~ ...- bv Iha Laaaoe'a ..... 10 I**>!nJb 0IJI!ga1lona ....1hIa Loa.. Of which In !he ordinary """"" <>Il
IhIngs -*I bo IIka/y 10 - IhoroIn>m, Ì1CIId1g ÞuI noIlmIIac D ... - 0/ """""ring poaeaaIpn 01 the ~ oxpenau 0/ ¡,/eIIfng,' ;
including '*-"'Y r- and ...- 0/ Iha Premlaea, ~ aIIomeya' fees, and I1aI portion '" any loosIng çammIaaIon pek b¡>' \
lossor .. connadIon willi IhIa Lease applicable 10 Il1o '"""'I'hd lam¡' 0I1hIalaasa. The worth III !he lime 01 sward 01 !he II11OUn ,.Ienod Q II¡ l
' provlalon (II) o/!he ImrnadaIaIy procedlng oenIanco ahaI bo ~ by IiaaxJrtIIng aud - aI!he - ~ 0/ Il1o - Aaaa!Yo., '- ¡
~~:":..~ ~ ~1hIa1ho~",,=:: ~ J:::. '; 't., =-- "':-~(~J:,"::i.bvll~ ~ ~,¡', ~
oblalnod through Iha provlalonal r8Inocfy 0I1ll IawU -. l.ouor ahaI he'jO !he rtghIlo _In IIJd¡ procoedIng any IIf1peId Roo! 011'1 ;1
damag.. os... r_- 1horN>, or louor may......... Ihe rtghIlO r8CtM ( all or any part 1horaoI.. a saparala auIt. ".- 8nd - "
period roqulrocf under Paragroph 13:1 - not proW>usIy gIvon, . - 10 pay rant or quII, or 10 perform '" qui! given to J-o.... undo< Il1o '
unlawful dalolnor aIaIute IhaI also œna JtuJa !he - roquQd by ~ 13,1. In aud¡'cue, lI1e appIc:abIa grace period raq<fid by
Paragraph 13.1 and Ihe unIowt<,I dalolnor...... shÓI NIl """'-"'anIIy; and "'" faJIur. 0/ lasoeolO cur. !he De..... wI1hJn th. graalero/!he
two ouch 11""'" per1oda IhaIc:ox-... both an ~ ....- and. BroecI1 0/ IhIa 1..e... ~ La- '" Il1o romodloa providod lor t¡1hIa
lo... and/or by said 0""". ' ,
(b) Conl/nue Ihe Uaaa and Leuea'a rI¡t1I '" --"'" and -Il1o Rant os . become. due, .. which oven! La.... may """'I
or o..Jgn. aub 0CI only 10 roeaonablo IImJ1aUona. - 0/ maInIananca, aIIorta '" rolol, and/or tho appointmenl oIa recalvor 10 prolecltha lasao(.
Int.rools, IhaI not conaII1uta alarmlnallon 0/ Il1o Leuea'a rI¡t1I '" pocaoaaIon. . '
(e) Pursue any - ramocfy .- or he<oefIe< -- ..- Ihe Iowa or judlclel dedaIona 0/ 111. aIaLo wherein th
Iocoled- fuo oxpItalion or lermlnallon 0I1hia Uaaa _or !he larmlnallon oIla...e'a righl '" poaaeaaion ahal not r.U...
PAafI
, -
f
..
under any Ì1deIMIIy pIOYis ona allhil Loosl II 10 I111III.. occuntng '" ea:nkog dwtng ... linn hereol '" by IIISOI1 aI Leasee'l - 01
thl Pr....... '
13.3 1nduC:emen1 Reoeplun, MY Igr_1or ~.. '" ebllId - "'- chIr¡ Is, ",lor Ihe giving '" peyIng by LeIsor 10 ",lor
' L..... aI any CIIh '" - bonus, ~ '" ÍD1IId8I811on lor LuIee'l -ring InIo Ihis Leue, II aI which concuslonllrl hlllinlner
relIned 10 II -Inducomenl P"",I8IDRI,"1haII be -- -- - Leasee'II""" IIIhIuI perfom1ence 01 II 01... lerms, .........,11
end condIbons ollhil Leese. Upon Breech 0I1hii Leue by ~ any IUCh Inducemenll'roi>lllon IheI euIom8IIcoJIy be deemed _led from
this Laue .... 01 no Iur1hor Ior1:e '" effec , .... any I8nI. other chII¡ e. - - '" ~ - eblled, given '" poId by
lessor ...- ouch en .......... PnMoIon - be knmedIoIeIy M .... - by Lesooo 10 lea8ar, --...ng any """quenI cure
01 ooJd &each by laasae. The...."tanc:e by UIIOl 01 ronl '" ... ..... 01 ... Breach - - tha operoIion 0I1his plrlgnophlhel nol
be deemed I welver by lea8ar aI ... pnwiIIonI 0111118 !IrIgrop/1 ...... IpICiIk:eJIy 10 - In WIÖ1g by Lessor 81 thl lime 01 IUCh
ICCIpIance.
13.4 lite ClwgIL lI.... hereby --.owtedgll IhllIete ~ by Lesooo 01 Rent wII ...... LlSIOr 10 ,incu; =11 nol
conIempIated by IhiI Laue, the exaa - 01- will be extremeIydlllculllo - Such costs R:ludl, but ara no! lmJIed 10,
proc:asà1g and accounUng r:hargeI, .... I8Ie c/1arvBI- - be ~ - Lessor by any Lincler. Aa:onIi1gIy, U eny Rentlhel not ba
receIved by Lassor wiIhIn 1M> (5) deyollter 1UCh"""1haII be ..... Ihan. ....... any raquhmonIlor notIca 10 LeSS8B, Lauellhel pey 10
LlSIOr I -lime lets cI1IJv8 IqUIJ 10 len pen:enl (10%) aI aecI1 IUCh - Ir1IOII1I. The per1IeI h.r8by "11'" Ihe! ouch 1111 cherg.
represenll . lair end reesoneble - aI ... COSII Lassor wi ..... by IIISOI1 0I1UCh I8Ie payment. Acceptance 011UCh llie chergo by
Lassor IheIIn no event constitute I waNer 01 LeIsee'l DeW '" &each willi respecllO IUCh - amount. nor prevent tha axen:lae 01 any
0I1ha other rightI and remadIaa granted - In tho eventlhll I ilia cI1IJv8 II peyabIa _under, whether '" not _ad, lor throa (3)
, CDr!- i1ItaIImenla 01 Sue RanI, then noIwhtendng any proyIIIon allhil Leue 10 tho c:onIr8Jy, Sue Rent 1haII, 81 Lesso(a option,
become M and peyable querterIy In -- .
13.5 InternL Any rnonellry peyment due LeIsor he_, _Ihen 1111 r:hargeI, not r-'wd by lea8ar, when duB lllo_d
paymenll (1UCh II Sue Renl) '" within IIiIr1y (30) cfeyo IoIIowIng tha dale on which . - M lor --- paymonl, - boar Intereal
from Iha dale when dUB, II 10 - - "'... thIrty-IIreI (31a1 day eIter . - Millo non-- payments. The Inleraat
("Iolerll!") charged - be equal 10 ... prime .... raportad In tho WeI SIreeI.IoomII II pubbhed - prior 10 thl delo when dUB plus
lour perœnl (4%), but - not -the rnexInun ilia -ed by Iew. -II peyabIa In edditIon 10 fila pOIonIIet ilia charga provided lor
In Pmgnop/1 13,4. .
13,8 Brllch by LeIlO<.
(a) Nod.. 01 B_ch. lea8ar IhaII not be cleemed In braad1 011111 Laue unlllllea8ar faUa within I reasonable tJma 10 perfonn
en obligation required 10 be pedormad by lea8ar, For - 01 this PerIgnoph, I - .... - In no IVII1I be Ie.. than thirty (30)
day. elIar roœlpl by Lessor, and any Lendar whole IIImI and Iddrlllihalhave blln IumI8had Lellliin writing lor such HIrpola, 01 _In
nol,.. opecI/yW1g wherein auc:I1 obIIgaUon 01 LIISOr haI ñot bean performed; pnMdad, however. thel . tha neture 01 LaS$O(1 obligation II auc:I1
thai mora Ihen thlrly (30) daYOIrI reuonebIy requInId lor lis perfom1ence, lien LlIIOr IhaI f!OI be In breach I performanca II cómmancld
within IUCh IhIrIy (30) day period and lhareeller dIIganIIy purauad 10 c:ompIaIIon.
(b) PerIormence by lIuM on IietIIII oIl.eeIor, In Ihe evenIlhII neither UIIOl nor Lender.....1IId braach within IhIr1y (30)
days eIter reca/pI 0/ IIId noIJce, "'I hiving commenced IIId cure they do not dllgenlly puIIUB 110 completion, then Leasal may elect 10 cure
,aid braecl1 81 Lo....'a - end oIfaet from RanI enllJlOUnt aquallo IIIe griller 01 ona month'l Baaa RonI or Ihe Sacurity Deposit. and
10 pay en ...... 01 ouch - uncIer p- rooarvIng Lauel" right to nrirnbtJlIBmant !rom Leasor. Lasseo IhaII documanltha coat 01
,aid curl and supply IIId do<:umanlaUon 10 Lessor.
14, Condemnilion. IItha P"""iall or any portion - erlleJ<en under Ihe,power 01 aninll1l domain '" sold under thlthreal 01 the
a,an:lae 01 Bald powar (coIIecIJveIy "Condemnl_', this Lellllhall- 1110 thl pert taken II 01 the dale tha condlUUllng authorlly
taka UUa '" po$Sasalon, whJc:hewr flrat occura. U morl than ten perœnl (10%) 01 any bI-.g portion oItha pramlsoa, or more than twan!y-
rIVe percent (2.5%) 01 the land IrII portion 01 the promlsea not oa:uplad by any building, II taken by Condemnation, Lo,..a -, al Lessaa'i
option, 10 be axercbad .. writing Within Ian (10) cfeyo elIer l8fsor IhaI have ¡;-.en Le.... wrIIen noUce 01 such laking (or In thl eb..nce 01
ouch noUce, within Ian (10) dayI after the condemning authority IhaI heve taken _salon) _Ie this lolli II oIthl delalha condemning
lulhorlly lake. ouch posaeasion. U Lo.... doe. notl8rmlnete IhiI Lilli i1 - will ... Ioragolng, IhII Leue IhaII rlmlln In lullorce
and Iliad u 10 tha por1Ion 01 the Premlae. r~ IXcapIthat Ihe - Ranlihal be reduced In proportion 10 tha raducUon In utUIIy 01 the
Pramloas caused by auc:I1 CondamneUon. ConcIeImaUon awardB and/", paymanlilhal be the property 01 Lessor, whether ouch lward shaD
bo mada u compen..tIon lor -....... .. veIua 01 ... _hold, the veIua 01 ... pert liken. '" lor _ranee damagol; provldad, _ovar,
that Lu..a IheII be anllUed to any companeaUon lor LesseI'I - -.. loll 01 -.. goodwœ and/or Trede Fùrturoa, without
ragard 10 whalher or not IhiI Laue II terrnin.olld ¡><nuant 10 the prOYlllonl 0I1hil paragraph. AI AIIa..1IonI and UUUIy InatelllUone made 10
thl Pramloal by Lulal, lor purpoMl aI ConcIernnetion only, ..... be -ad tha propar1y 01 the Le.... end Leu.. IhaII bl enUtJad 10 any
and 811 CDr)1pB/1BIUon which Is poyable the..Ior, 'In Ihe event that IhII Leese Is noIlerminaled by ruson oItha Condemnedon, La.sor"'" repair
any damage 10 the PremIaaa causod by auc:I1 ConcIeImaUon. ' ,
16. Brokora'--
". I"""'.n"'.__'u"'. '."""""""kr'l""--~O"'ad~UO"-;-~2"""'"
otherwlae 19re8 .. writing. UIIOl- -, (I) :;:10 ~~~..~.øAgII/I'" u~, rr or other
preml... owned by Laasor and Ioc8Ied within Ihe - Projad, I ~ - (e) I Laasee remeJne In poaaoasIon
::;~::=:~.~ "'(d) I Sue RenlI8_, wheIhotbylgreemantor opaIBUon
01 an -- peyBrol<enoa fee i1lCCOC1rt1encewllh the IChecUe 01 AId Br"""'i1111ect 81thl lime althe
l',-
.',~
,",',
,-'.'
--.-'-
,':':
:~
'-
,,-.'
..
-'"
15.2 ""..pdooool"""g-".,. 4oArbl~......-......,..
~~ee:.~-:~~~~oIPenI JI >hII,10,15,22 ";"1nIer1lll.1II:=
. Lassor loll 10 pey any II11OUIU 10 Laasee'l BroI<ir.... dUB, - -- - to Lessor and Laasee allUCh faIura
end I Leasor IeI8 to pey IUCh ernounII' -, LeIIIe .... pey IIId - to II -1I1CI onntlUCh ernounII
Ig- Rent. In Broker."'" be deemed 10 be a third por1y benellclery aI ~ - ~ enlerad Inlo by and/or
15.3 RepreHntellone and IndemnlIIee 01- Reletlon8hlpe. LeIIIe and Lessor..én I8prIIInt and warrant to the _1hII1 '
hII had no daaIIng. with any -11m, broker "'-'olh" 110.. lilt IIr?h"',1 II1I'I.. comocdon with 11118 Laue, and IhII no one-
"'Ie .... ft_--' a__-.. Ie -- to any - '" IIndeI'I foe .. comocdon - LeIIIe and lea8ar do aach heraby ogr.. 10
1ndernnIIy, - cleland and hold the ollar _!rom and I INI w.y lor -- '" chargoa which may be daImod by any auc:I1
unnamed broker, IInder or ollar - party by rouon 01 any daeIngI '" - 01 the ~ party, k1ciJdIng any coola, _",
allorneyo' .... rlllClflllbly k1curred with relpBCl -
II, Eeloppe/ Cor1Uk:etei.
(0) Each Party (u "ReepondIng Par1y") IheII within tan (10) cfeyo .... wrIIen - from Iha ollar Party (Ille "RaqUBBllng
PIr1y1 -, acknowledge end da6ver 10 Ihe Raqo-.g Party I - .. WIllIng .. IornI - 10 tha than moot cunonl "Eltappol
Cordll...."1orm pubIIahed by the - Indu8IrIII Reel Eetete AuodeIIon, pIua IUCh -- WormaUon, confIrmaUon and/or -
aa may be rauonebly requalled by tho Raquaa1lng Party. ' '
(b) U tha Re~ Party _1aI1o ........ '" daIMIr tho EIIoppoI CertUk:ete - auc:I1lln day period, the RIC UBIIIng Party
- ........ en EBIoppoI CertUk:ete lilting - (I) ilia Laue II In ... !orca end effec wIIhoIA - - u mey be raprl8onled by
the ~ Party, (II) lhara ere no uncured -.. .. tho Raqo-.g I'Ir1y'I padorrnance, end (111) 1lea8ar lithe RaquaBIIRg Party, not
more than one month.. rllll haI bean poId .. -, PrOlpedivec pun;oaa.o and anaanboa>ce<o - rsly - thl Raqua.1Ing Plrty'l
Estoppel c..tJftca'o, and tho Ro~ PIr1y IheI be HIoppad from ~ fie .uth 0I1IIe Iad8 contained In IBId CertJf~ Ik
, ~
, P""" ""'1aIo -
nn.. OM" n ",.
.~
'-::~
-
(e) ø l8IIOI' -. to .....,., -. or ... 1110 ........ or ony par1 -, leIaH IIId d G..u.nto.. - ...... 10 ony
poIonIIaI - or pun:ha¡et de&/gnalad I>\' L.....- IIUCh IInancIaI ............. .. may be roasanabIy I8C UirBd I>\' IIUCh lender or pwtha"",
including buI noIlImIIad 10 Leu..'allnanclal - "" 1110 pullIveo (3) UBIL AlIIUCh DnancLalIIaIamenIs - be rocaIwd I>\' Lessoi
IIIId IIUCh lender or pun:I1uer In CIIII/Idencf IIIId - be used only "" 1110 purposos heroin ... Iorth.. ' ,
17. DoIloJUon 0I1..ouœ The loRn "........ .. used haroIn - .-..1110 owner or........ 811110 _In queatlon 01 1110 lee Il1o 101110
Premlsas, or. U IhIa II a-. 01 1110 leIaH'a -In 1110 prior..... In!he..... 01 a - 01 loaor'a l1li0 or lnIeraSt In 1110 -..
or Ihìs Loasa. l8IIOI' - - 10 1110 ....... or II88Igneo k1 ..... or I>\' CI8diI) ony III1<II8d SacurtIy Dopooit haId I>\' Uuor. E"'"f>I eo
plDYidodln Pamgraph 15, upon - - or uoIgnment IIId doINoIy 01 1110 SacurtIy DopooII, eo"""""; 1110 prior Luoor - be .-
01 "1abiIIIy wIIh - 10 1110 aI>/IgaIIona and/or ""'""""'" under IhIo Loasa IheruIIar 10 be performod I>\' 1110 Luoor. Subject 10 1110 Io<ogoO1g.
1110 obIIgationa andI4r covananIa In Ih/o Loasa 10 be par10rm0d I>\' 1110 Louor - be biåIg only upon 1110 Lassor .. - -
No_g Iho -.1IId ouI> eello !he pnMsIona 01 Pamgaph 20 beIow,tho original La- under Ihìs Loasa. IIId d subsoquana haIdoli
01 Iha loss<x's lnIeraslln IhIa Loasa IhaI - IabIo end I8I IOIIItiIe with _III 10 1110 poIenIIeJ duIIos IIId labilillu of Lassor porialning 10
Hazerdous Subslancas .. outJIned In Paragraph e above. ,
111. So....bWly. The ÒNB/ d y 01 any pnwisIon 01 1I1181.eoM, eo detonnIned by 0 COUI1 01 _IoN þi&dd on, -In no way oIfod 1110
vaIIOIIy 01 ony olher pn>vIsion haraol.
18. Doy.. UnIua -Isa s¡>odIIcaJIy IndceI8d 10 1110 con/IBr)\ 1110 - "dayI" .. used In IhIa Loasa - moan IIId _10 caI8nder day&.
20, UmIIoUon on UobWIy. Subject 10 !he provtsIona 01 Paragraph 17 -, 1110 obiIgaIIons 01 Luoor undor IhIa Loasa shaJ noI COI1IIJIuho
po""'" obIIgaliona 01 Lassor, Iho IndIvtduaI partnoI> 01 Lassor or Is or IhaIr IndIvtduaI paI1ner8. dlrodora, oIfIœto or sIw8hoIdo... IIId L.....
- - 10 1110 Pro""" IIId 10 no other &slab 01 Laasor, "" tho ..USIBdJOn of ony IIabIIIIy 01 Lusor willi - 10 lI1Ia Loa", IIId - not
=:.... '""'::la°~ 1110,,= par1noli 01 Lusor, or lis or IhaIr individual paI1ner8. cirocfon¡, oIficoli or sharohaldoli, or ony 01 IhaIr
21, 1ùno 01 Eaeonoo. T1mo II 01 1110 - willi - 101110 perfonnanco 01 d obIgaIIona 10 be port>rmod or Oo..rvod I>\' 1110 PaJ1Jaa
under IhIa Loasa.
22. No PrtCH' or Other Ag_to; Ø- -, - Loasa - .. - - 1110 PonIoa willi - 10 ony maaor
~ heroin, end no oIhør pdor or ~a ogre...... or undera~ - be a- Lusor end Loasao each rape......
end ......... to 1110 Brokm thai k haI moda, IIId II roIyIng solely upon, Is own Investigation .. 10 1110 naIura, ~Iy, chaJBcter and DnancLaI
rosponsI>iIiIy of 1110 olhar Party 10 IhIa Loasa IIId .. 10 1110 ........ quaIIy end _r 01 1110 Pramisoo. -Ii heva no rospond>iìly with
,o_lhorolo or willi - 10 ony default or broach her"'" by oIhor Per1y. The IIabIIIIy (i1dudIng COUI1 c:oaa end Allomays' ""1, 01 ony
Brokor with roapeel 10 nogolJallon, """",,lion, doIvory or polformonc:o I>\' aIIhor Lusor or I.ø...o under IhIa I.ø... or ony amonGmonl or
- herolo - be IimIIad 10 en amount up 10 the leo rocolvod I>\' IIUCh Brokor pursuonllo IhIa Loasa; IlOVidad, howovar, thai 1110
Ioragolng limIIation on each Broka(a UabWIy lhoJ not be eppIIcabIe 10 ony grosa negllgonca or wØUul miscondud of such arokar.
23. NoUc:o.. See Addendum 23 ' ,
23.1 II<>Uc:o RoquIromonto. All noIIcoa ~ or parmlllad I>\' IhIo Loasa - be In wrIIIng IIId moy be dollvarod In pol'lOß (by hind
or I>\' couriol or moy ba santI>\' r& Uiar, cor1lllod or rogIllorocI mal or Us. PoIIaI ServIca Exprau Mal, willi poIIogo prepaid, "i, ItA;.lIiI-
.or -'" end - ba doemad -lly given IsaN8d In a- Ip8CIØad In IhIo PanI IB >/123. Tho 0- naiad ad acont 10 a
Perty'a signature on IhIs Laesa - be thel Party'a addlo.. "" doIYoIy or maJUng 01 - Ellhar Party may I>\' wrlIton noIica 10 1110 other
apeciIy 0 _ronl - lor noUco, ","",pi thai upon LUlSo's IoIck>g pouasaIon 01 Iho PrBIJIisaa, ilia Promila - CX>RI1itu!a Laosao'a
addso.. "" noUco, A copy 01 ~ nolicaa 10 l.øasor shaJ ba concurronlly IronImIOod 10 auc:h por1y or parti.. oJ auch odd,o.... as L8IIOr may
Irom limo 10 limo hornOer doalgna'oln wrlling.
23.2 Do!a 01 Notico. Arrt noIIco .... I>\' rogiI!arad or -- mal, ro"" IOCOIpt raquellod, ahaI be doomad gJvan on Iho cillo 01
dllivary Ihown on 1110 roœlpt card, or 0 no doIIvary dote II Ihown, 1110 XIIlmllrk thar...., U aant by 'egular mal 1110 nollco ahoD be doomad
givan Iot1y-olghl (48) hounr ollar 1110 l81li810 &<idr8lMd eo roqulrad heroin end moJIoc with poIIogo p'opalcf. NoIJcoa dllivaredl>\' Unitad Slat..
expro.. - or ovornlghl courfer thai gUaronlao noxI clay doDvary ahaI ba doomed gIvan 1wanIy-1our (241 hounr ottor doUvory 01 ilia ...... 10
lI1a PosIaJ Service or cooriar. NoIJcaa IronamitIad I>\' facsIm8o - or - m&anI ahaI be ........ dolfvared upon IaIaphona
conf1rmaJJon 01 receipt, provided a copy 10 also _ed via dalival}' or maIL U noIIco Is rocolvod on 0 Selurday, Sunday or legal holiday, k IhaI
be doamad racalvod on the noxI buslnaaa day.
24. WaI..... No w_1>\' Luoor 01 the DoW or Broach 01 ony term, .......... or condIIIon har"'" by lelaH, _I be doamad a waJvar
of ony oIhar !ann, covanonI or - heraoI, or 01 ony aub- Dolo.. or Broach I>\' Loasao 01 the l81li8 or 01 ony oIhar !ann, covanonI
or -lion hor""'. I.øSlOl'a consant 10, or -- 01. ony lid IhaI not be ........ 10 randor URI18CaIl8/}' 1110 obtaining 01 LaSlOl'a consant
10, or epprowl 01. ony subsaquont or aImIIar eelI>\' Loasao, or bo - ..the bull 01 on ~ 10 - Iho provlalon or provtsIona 01
IhIa La... requiring IIUCh consent. Tho accaptanca 01 AonIl>\' l8IIOI' IhaI noIba 0 waJvar 01 ony Dofauk or Bceach I>\' lass8e, Arrt paymonl
by Laosae may be accaplad I>\' Lueor on - 01 moneys or damagoa duo l.øasor, noIwllhalandlng ony quaIIyIng s!atomanll or condiIIons
:::d\ ~~ ~ IIU:~ ~ ~ ~ .::'~ - ba 01 no Iorco or oIIad wholaoavar unIo.. apodficoIIy
25. RoGordIng. EiIhar Lusor or leIaH ahoI, upon raquuI 01 ... other, 8X8CUIa, IId<nowIedgo IIId doIvar 10 ilia other a Ihor1 loan
mamorandum oIlhis Loasa lor recording purposM. Tho Part¡> roquosl>lg racordollon - ba rosponalblo "" paymen' 01 ony Ioaa epp8cabIa
thareto.
28. II<> IUgIII To Holdovar. L,AM haI no righllo roIaIn ........... 01 1110 PromINa or 81ft par1lhorool boyor1d'" - or-
01 IhII u- In 1110 ovanIthalleIaH hoIdo """',then 1110 a... Roro ahaI be _10.... hundrad My _, (150%) 01 1110 - Rent
8 JpIIcabIa during 1110 month InvnedJaloly proc:odh>g 1110 - or tor-- NothIng conIaInod heroin shaI ba - .. consant I>\'
Loa"'" 10 ony hoIcIng over I>\' ........ .
27. CIImuIoUve R- No romody or - - - be doomed -- buI ahoI, ..,....,~, ba CIII11IÛUW \filii ~
oIhør ...-. aI low or III oquU¡< ,
211. eov...... and CondIIIona; CotI- of A~ AI pnwIsIona 01 IhIo Loasa 10 be ~ or per1ormad I>\' leIaH aia boll¡
covananIallld -Ilona. In conotruIng IhIo LaaU, d hoadInga IIId - ... "" 1110 - 01 tho par1Ioo en, end - 1101 be -
a part 01 IhIo Laaaa. - required I>\' 1110 - 1110 aInguIer _incbIo 1110 plurallIId vIca versa. - Loasa - 1101 be -
II U properedl>\'ono 011110 per1Iaa, but ralha< occordng 10 Ita fair 1IIUI1IrIg.. a whole, eo I both partIu hod propared n. , ". ;
28, BIndI"II EUocI; Chalco 01 Law. ThIa I.oasa shaI be binding upon 1110 per1Iao, IhaIr p8IIOII8I repra_, IUCœIIOro IIId uaIgna :.
end ba govarnod I>\' the lows 01 1110 SIaIa III whICh 1110 Pramlo.. ... Ioc:aIad. Arrt iIIgatIon boIwaan 1110 Per1Iu herolo concamlng IhII La... ,
shaJ balnitlalad In 1110 c:ounty III wf1Jch the PrBIJIisaa eraloc:alad.' ,
30. a_'UIIan¡ "-nI; _01_. ,
30,1 SubonIInoIlon. - I.ø... end ony Opdon grontac hereby shaI be IUb oct end - 10 ony ground 10..., mor1gogo, .....
01 truII. or oIhar hypolhacoJJon' or aacurtty - (-ii', "8ocurIIy -" .... or horooJtor pIocod upon 1110 Pro....., 10 ony and &I
a- made on 111. aacurIIy -, and 10 d r8l1ft8le, modIfIcoUono, and -- II1oroo/. Loasao ogr- 111011110 hoIdorl 01 ony IIUCh
Socurfly Devtcoa (in IhIa Loasa togother referred 10 eo "I.oaor"¡ Landor') - hava no IobIIIIy or obIIgollon 10 potIorm ony 011110 obIIgdona 01
LollOf undor this La.... Arrt Londor moy oIod 10 hava 1hll1.ø... ondIor ony OptIon grantad hereby 811p8r1or 10 1110 lion 01 IIa SacudIy DovIco
by gMng wrlll.... noIJco Ihor"'" 10 I.ø...., wheraupon IhIo Loasa ond IIUCh 0ptI0n0 - be doemad prior 10 IIUCh SocurIIy DovIco,
noIWiIhatanding tha ,olollva _a 01 tho - or rocorcllllon 1horooI. ' , ~/J
30,2 AtIommonL &þ oct 10 tha - provIeIono 01 Paragraph 30.3. LoNM ogr- 10 ollom 10 0 Lender Õny' por1y
who ocquiroa _o,lhlp 01 ilia Pramloaa I>\' rouon 01 0 ""_0 01 0 SocurIIy DtMco, end IhaIIn 1110 ...... 01 IIUCh ~1I8W
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owner shall not (~. be IIabIa lor eny 8d or omission aI eny prior lassor or with ..sped 10 evenls oc:curmg prior 10 ecqulslllon aI ownership; (M) ~
; sub ec:llo eny oil,!," or- - L.aømlghlhewogaJneleny prior-, or (UI} be boIe1d II\'pI8pIIyIII8I1Ialmoro_Dr18 (1) monilia
'aol
; 30,3 Non-DIetu_. WUh rupec:I \0 SeaII1Iy Devtcas onl8nld Into II\' u.- olter Iha - aI ~ La..., Lessee's
, - ,aI lID Leua - be U> 8d 10 I8C8IW1g 0 common:I8IIy ......- nan-dieIuIbence 11\1_1 (0 Non-Dletutb8n..
" A......an") Inxn"'" Lend« which - Ao-menl provides """ ~~ poeseoelan allha ~ end IhIa La...,IncI_.
, eny opIIone 10 ..18nd the. I8nn -, wII noI be dIehøbed eo long ea less8e II noI kI 818.... - end ....... 10 "a ..conI owner aI ....
: Premises, FUI1her, - IIdy (80) d8y8 -.... .-.lIon of thIe leu8, u.- - .... 118 c:ommerclelly ......- altorts \0 obleln 0 Noo-
, DIsturbance Agr8emonIIrom Iha - 01 any pre-e><l8llng Security Devtca _18 --' by lI1a --- kllha IMN1I """ Lassor 18 UI1IIbIe
: 10 provide 1110 Non-DIsIurb8nc8 Agnem8nI- uId IIdy (60) d8y8, Ihon l.8uH 1118)\ "less8e~ opIIan, IIrIcIIy conI8d l8IIOI'8 - end
, 8118q>11o noga/I8Ie for Iho - end doIIv8ry 01 0 Non-ÐiIIUIt>8nc ~ ,
, 30.4 SoN-ExeouUng. '!be a...ernen.. ~ kI..1o ""gnoph 30 - be - without.... """"""'" aI eny fur"ar daaJmants;
, pnMded, -,1181. upon ...-. requesltrom u.- or 0 Lend« kI - wtIh 0"'" IkIandng or roIkI8ncIng aI"a - less8e
: end Leeaoi - - euch IIxIhor WIÖ1 8 u..., be I8UCX18bIy roqußd 10 -- - !"Y ~ 01!ornn*1l endIor Non-
,( DI8IUrI>8nc8 Agro.MnI pnMded for - ' '
::il. karneyo' Foe.. N eny Party or BroIr8r bdngs on - or proceeding ~ Iho Pr8mIsu 10 _Iha I8nns he..01 or \0 dedanJ
; rIg/Ua tia..ui1dor, 110 Prev8IIng Party (u ........., deIkIed) kI eny euch proceeding. -. or eppMI - - be en- to """"¡'¡a
; ~'Ieu, Such""'" be _In 110 ..... suit or _In 0 -- euII, whe\her or noIeuch 8CIIan or proceeding Is _d
: Ió - or uc9nenL '!be 181m, "Pr8v8IIIng Party" _Include, - -.m. 0 Party or - who IIØIsnIIeIy obl8ln8 or de.....
; Ilia i1hI ooughI, u Iha cue ..., be, whot\her II\'~, ..1118I118III, ~ or ... 8b8ndoM18nI by Iha oIher Party or - ollis
: t:IeJm Dr def8ns8. The dorJ18Y8' leu - 8hIiI not be CCII11pIiI8d In --- with any cour1 ... -., but - be euch u 10 fIjy
: - .. 8IIomey8' leu I8UCX18bIy Inc:unwd. In,-, u.- - be -- \0 8IIomey8' ..... coeIi end _neea - In 1118
¡"ep8I8IIon end - 01 noIIOet '" DoIeùII end _In ...-,~ who\her or not .1egeI- II U>eaqu8nIJy ......-
, In èonnectIon WIIh euch DeIeuI or ~ - '
: 32. Lta"", Accoea¡ ShowIn 1'r8mItu¡ R.ptIJe. Lt- end l8IIOI'8 .gente - hew 1118 ~ \0 anler ,1118 Pramls.s at any Urna, kI
... cue 01 on -, end - at ......- limes for 111. pu~ 01 o/1oWIn 1118 ..... \0 prospeCtIve purcl1ua.., lend.... or
1""00, om! rnokkIg euch aIIoioIIcne, ropaIII, ~ or 0_10 Iha p- u lts!or may doom nocessary, All such ocIIvIUos
shel be without _nI aI rani or IabIIty \0 less8e, u.- may olony""a pIeC8 on'" _s eny onInory "f« Salo" oigno end Ltssor
may during tha lost six (8) months aI 1118 Ie!", herool pIoco on 1118 Promiau eny onInory "f« Ltoao" aIgno. Ltaaea may 01 any limo pIoco on
or obout 1118 Pr""o eny onInory -For -" oign. , '
33. Auodan.. Lo- IhoI 001- nor ponnllto be conduçlad, any ouc:tion upon..o Pr....... - Le""'o prior wrll1an-
lessor IhoI naI be obIIgoIod .. -- any - aI -- kI delorninklg whethar \0 permit on ouc:llon. . ..
34. SIgna, E>rœpIIor onIkIory "for Sublao.." o/gnI, Le.... - naI p8ce eny IIIgn ~ Iha "..... without Loeaor'a prior -
consonl AI oIgna must campi» with d AppIIctbIe RoquhmonIe. ,
35. Tonnlnollon; 110'11'" ~ apocIIic:dy 81818<1 oIherwlae In writing by La...., "0 voIunIory or othor surrondor allhia Leoso by lAr...a,
tha inulualle- '" - her"', or 0 10- hereof by u.-Ior BraadI by Lessee, ohaII outomaIIc:aIIy lormInoIa any 0-
or lessor aototo kI Ihe Promlaes; pnMded, -, 11181 Loosor may oIocIlo continuo any Dr18 or 01 -g oublonondos, LtsSOl'ololuro wI1hIn
Ion (10) cIoyafollowlng any euch event 10 alocl \0 1118 conIr8ry by wrU1ennolict \0 Iha holder 01 any euch _1nIor00l, ohaII consIItuIo Ltooor'o
01- 10 hove euch evenI conotiIuIo Iha to- 01 ouch InI.rosL
38, Conoonto. excepl U oll1ilW!so provIded heroin, whor...r In 11110 lAru.lI1o conoanl 01 a Party 18 roqukod 10 on oct by or lor Iha othor
Porly, such consenllhol not be unroosanobly wtlhheld or daloyed. Lo""'s aduel rusonablo cosls end --- (including bul not IImItod 10
ord1J octs', dorneya', anglnea'" end other consullon,,'looo) Incurred In Iha consideration d, or - 10, 0 requosl by L....o lor eny Lessor
conseollncludklg but nallImIted to consenla 10 on uaIgnmon~ . oublattlng or th. pro...... or uSa 01. Hazordouo Subolonoo, ohall be paid by
lo..ao upon rocolpl 01 on - end ouppor1Ing documonlollon II18ralor. Ltuo(o _110 any act, osslgnmont or subletting 81101 naI
consUIu" on ocIcnowIedgmontlhal no Dolaul or Brooch by Ltaooa 0I..1s Ltuo 8>date, nor 8haleuch conse~1 be doomed 0 wolver 01 any "on
oxIsling Colau. or Brud1, oxçopIea may be otherwlae opoc:IIk:aIIy alaled kI writing by Lossor attha - alouch consenL Tha IoUura 10 opoclfy
horoln eny portk:uIar condillon to Lo""'a conaanl - naI pracluda tha knposIIIon by u.- ollha - aI consenl alsuch fur1hor or alher
oondlUans ea ore Ihon ro_a with ro'oronco 10 tha portlcular matter lor which consent Is boIng given. In Ihe evenIthal ollllor Porly dlsagroo.
wi" any dalarmlnatlon moda by Ihe a"or hareundor end ..uonobly requa." "0 rossona for ouch dolormlnellon, Iha determInIng party IhoI
furnish 118 ........ In writing end In ......- dotal wtIhIn Ian (10) buoIntss d8y81o11ow1ng euch requoot. .
37. GUoronlor. ,
37,1 Exoc:uUan. Tho Guoranloro, U any, sboa eoch oxo<:uto 0 gul\nU1ly In 1118 Iorm ...01 roconUy published II\' tha American Industrlol
Au! eotolo AsaociaIIon, end ooch euch Guoranlor - - 1118 ..... obIIgalions u L.aø om. thIa Louo.
37.2 Dofoult. U IhoI c:onsUIuIa 0 DolouJI 011118 Ltaooo N any Guorontor folio or relusOl, ~ request \0 provIde: (0) ovIdonco oI"a
..acullon 0' th. guoranty, including ... oulf1ortly 011118 p8l1)' signing on GueranIor'o behelf 10 obligato Guoranlor, end In ... cas. of 0 corporal.
OuI\nU1Ior, . etr1IIIed copy 01...- 01110 boon! 01_... oulhortzlng... rnokkIg oIeuch gutI8I1Iy, (b) c:urrenI- 8IaIomonto, (e). .
TononcySlaIamonI,or(d)--thoIl1o U8l8llly188d1IntllocL . . ,
38. Quloil -- Brti ooI fa poymenI by Lessee 011118 RanI end pol1armonco 01 d ,allha - - end provtslono on
Ltaooa~ poI1lo be -..0.1 end podormod ... thIa Ltoao, u- - - quIoI-- end quiet on oymonI 0I1ha PromIau durtng
the Iorm htrool. ,', , ,
:n. OptJone. . ,
39.1 Dollnllfon. "Op_"1hoI moon: (t) 1118 ~ 10 oxtond it.. Iorm 01 or - thIe Ltoao or 10 oxtond or - any Ioualhal Ltaooo
hu on DIhet propor1y 01 Ltoaor; (b) 1118 ~ 0I1IroI reI- or IIroI oller 10 100M oIthtr II18,PromIau or-pIqIOrIyoi Ltoaor; (e) 1118 ~ 10
purchuo or 110 right "'1Irot -10 purchuo ... PromIau or - prcporIy '" Lossor,
39,2 Opllono _Ta OrIginal Lt_. Each 0pIJ0n gronled \0 Ltaaeo In thIa Lto..1s poraonoI \o"a orIgInoJ Lt...o, end connoI
be uaIgnod or - by - _!hen oaId orIgInoJ Ltaoo. and only whIIa 1118 orIgInoILessee loin 1uI-- oIlI1a P- end,
N raquoaIed Þr Lt...., WIIh ~ cortIIyIng """ u- hu no lnIenlion aI.....- ouIgnkIg or oUoIolllng. '
OXOrola~::'::U,::: ~~ ~ :: ~ ~.eny rnutUplo 0p4I0na 10 oxtond or r8MW thIe Louo, 0 IoIar Opllon connoI be
39,~ ' EIIec:I 01 DoI...II... oj,a..,o.
, (0) Lt...a IhoI hew no ~ 10 oxorcloo on 0pUcn: 0) during ... porlod ccnvnoncIng WIIh ... giving 01 any nDUct aI Dofaull end
conllnulng untI,oaId DoIauIII8 cured, (I) during 1118 por1od 01- eny RanI II tq>8id (wIIhoot ragon! 10 wholl18rnollct lharoolls gNon Le...o),
(UI) during ... - Ltaaeo Is kI Brooch 01 thIe Ltoao, or (Iv) kltha IMN1I """ Ltaaea hu beori given II... (3) or more nollcoa 01 sopara1a
DoIauII, ,who"" Dt nallI18 Do_... cured. dwfng 1118 - (12) month por1od InwnodIoIaIy proc:odkIg If\o oxorcloo 0/... 0pII0n.
oxorcIsa on =- .:::. 0/", u;: == ~ 7.~0~ IhoI naI be -- or orûrged by....... aI Ltaaea'olnoblllly 10
(0) M OptIon 1hoI- and be '" no IUI1her forco or alfact, noIwIII1sIondIn Lt....'s"" end IIrnoIy oxorclsa 011118 Opdon.
K, oller ouch -- end prior 10 Iha - 011118 -- torm, (J) Lessee fdo Ia ptty RanI tOr . por1od 0I1irIy (30) d8y8 oller euch
~~ ~ .... (wtIhouI eny nocossIIy 01 Ltuor 10 <jvo noIIct Ihtrtol), (I) u.- gives Ia l..... !Iv" (3) or mora notfcea 01--
0 ring eny - (121 rnonIh por1od, whtIhor or naI ... Dolaullo ... cured. or (I) I Lt- oorrsnIIo 0 Brooch 01 thIa Ltuo. .
CD. lIuldpio Building.. N 1118 P,r....o ore 0' poI1 aI . group 01 ~ a>rdro/Iod by Lessor, Ltaooo sgraoo 1haI~. Wti , ;:... d
'aoeonabla rules end rogulolJono which Loeaor mer ...... ""'" - 10 ,- for 1118 .......-... 18foIy, end .... '" uId , ~
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common -- - In - Iher-.. '
41. Seourtly _uno. Leaaee'horeby ~11111'" r8l1III po WM" leNor_- 001_'" COlt 01 gU8ld-
01 0Iher seady .......... end IhaI Leu« - - no obIgelian - Ð pnMde...... Leaaee -. .. respanIIbIIJIy lor II1e
1'"'1- 0/ Il1o PremIu8, ~ lie ~ end ~ end - ~ _Il1o lido 0/ - p8/1I8L
42. R~ Leu«........" - Il1o rtgN. ..... lima .. lime, .. gnII1I. - Il1o conunt or ~ 0/ Leeaeo, ouch ...........
righIa end _lh8IleNor - - and .. ...... Il1o .- 0/ p8IœI "- -- 80 long .. ouch ............
rlghll, -- II1IIp8 and -- do noIlInrUD>IIbIy ....... .... ... ... 0/ Il1o - by Lueoe. Lesae..- 10 IIgn any
docwnanI8 reuGf1IbIy raquaoIad by leNor 10 - any ouch ......... r9á. dadiceIIan, - or -
43. Pe- Under ProwL. .. any lima a cIsputa - arIoe .... any - or un 0/ """"Y 10 be paid by one Party 10 II1e 0Iher
under Iha pr-.a horIo/, Iha Party againat whom ... abIIgaIIan 10 par ... """"Y Is ..-lad IhaI - Il1o rtghIlo maka paym8n1 'InIa,
proIasI" - ouch payment - 001 be raganIad .. . voUIIaty paymenl- .... - ....... Il1o rtghI on Iha pan 0/ said Pany 10 In8IIuta
suit lor raaNW'f 01 ouch 8UIIL . I - be odjud ed ... Ihara ... no legal obIgaIIon on Il1o pan 01 said Party 10 pay ouch .urn or any part
II1ereol, aaJd Party ""1 be anIIIIed 10 """"" ouch un or 80 much - .. I ... noIlogaIy required 10 pay.
44. Aulhodly.. 0I1hor Party horelo Is a corpooaIIon, ~ IImIIed IIbIIy -, par1narIhIp, or -,anII!y, each individual axoc:uIIng
IhIa Laaa. on bahaJ 0/ ouch anUly repr....... end ........Ihat 110 01 .... Is cUr IIihodzad .. - end dollwrlhla Laaa. on 110 behalf, Each
party 1haI, -1hJrIy (30) days ehar roquuI, - .. ... oIhar party I8IIafacIOfy - 0/ ouch authority. '
, 45, Conlllct. Ant conIIId betwe.n ... pMIod pr-.a 0/ IhIa Lesae - ... typawrlUan or hondwrlUan pnlYlolona - be - by
, Il1o typawrII.. or handwrtItan pIOVioIana. ,
41. Oller. PraparaUon 0/ IhII Laaaa by oIIhor Pany or - agent end -- 0/ ..... .. ... - Party IhaI 001 be deamed an o/Ior ..
, .... .. II1e - Paray. ThIa Laaaa Is noIlnIandad 10 be bhIIng 181" - and doIwrod by .. - hondo. '
47. _Ie. ThIa Laaaa - b4 modIIIad only In wrtIIng, oIgnad by'" _In - 01Il1o lima of Il1o - Ao long..
Ihoy do 001 marartaJly chango Leeaeo'. oÞIIgoIIone -. Leeaeo - 10 maka ouch roaeonabIo non-monelary _11one Ia IhIa
Lo... .. - be reuGf1IbIy req,*ed by . Landor In - - Iha DI>IaIning 0/ normoIlinanc81g or relinanck1g 0/ 111. Premls..
41. IIIIIUpIo Por1Ia. U more Ihon one po""" or anIIIy Is named her... .. - leNor or ~ ouch nUIIpIo PartI.. - ha,," )001
and _rei r.~ 10 ccmpIy with Il1o I8rma 0/ lhllloua. .
48, lI.dlaUon end ArtIIIroUon 01 DI.pu.... An Addendum requiring Il1o MacIaIIon ondIor Il1o MIIIraUon of.. ciaput.. b.tw..n Il1o PartI..
andIOl - 8liÄ1g out 0I1I!Ia Laaaa 0 fa 0 fa no! aIIachad!" lhilloua.
"'SSOft - "'.... HAVE CNIERW' READ - ÆVEWEII- LEAsE AND EAai,.,.. ..., PACMSIOH """"'""" HEREIN. - .Y TI<E EXECUIICH Of """
lEASE SIÐW 1>EJR INfOAIÆI) AND ""'-IJNTARV CONSEI/f 1>ÐIEIO. TIE - I£AEBY AGREE 1>IAT. Iif TIE tIIÆ """ LEASe .. EXECU1ED, TIE,..... OF
TItS lEASE ARE IXMIERCIAW IIEASONAIIl£ All) EfFEC1UoItE TIE IKI'ÐIT AND P\IV'OSI! OF "'SSOft All) ...... WITH IIESÆCT 10 TI<E PfIEIOSE& '
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m<fIIW! ¡ NO REPflUEHTA""" OR RE- . 1IIO81Y"'" ......,.,. -........ ..... EIW1!...cc..""" ORIY ANY ...... "10"'"
..cw.IUFfICEHCY, L<IW. EfFECr, OR"" - 0F1II8...... ORt.n......""""lO"""""""" "'" _ARE UROEOlO,
,. ""_"'COUNSEL"lO""'L<lW.ANOtU_...nalDSl.
~ m... -,. COItItIUAItTOlO REVŒW - _nllCOIIImOH OF"'" PH""'" ..... ...............II1OUUJ lItCLUo. OUT "'"
I. UIII1ED "" "'" ......... ,........ OF ........,.,. IUIIToUICEI, nil ZOIONO OFnII """", tIlE """"""IIAL IItTEGAITY, "'" CONOmON OF"'"
ROOF - OF""'" 8mIU8.-"'" lUITUIlJIY"'tIIE"""" FOR"""" """"'EO"'"
!I'AIIIIIItiI:. If "'" ,....... " UJCAT! II A OTATI 0I1ŒII t1W CoWfORHIA, """""" .-- ... till ...... MAY ....10 .. .IEYIIEO 10 COIIPU'
WInI"'" LAWS"""" mull WllCHtNE ........" LocmD.
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By LESSOR: By LESSEE:
SHUBrN SERvrCES
a Californ' c ration
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NOTE: Th- forma are ollan f\IOd1Ied to moat chan¡¡ó1¡j rac¡uIran.u 0/ law end InduoIIY noado. IWtwia wrllo '" caJllo rnaI<a oura you
are utIIzIng Iha moat CUIT8I1IIorm: AMERICAN INDUSTRIAL REAL ESTATE ASSOCI.IJION, 700 So. Flower Slreet, SuIta 600,
, Loo Angela., Callornla IlOO17. (213) 8IJHITT7. Fax No. (2,13) 1187-8818 ,
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9
Addendum 10 Slandard IndustriaVCommercial Single-Tenant -Lease-Net,
dated April 7, 2000 (Ibe "Lease") ,
By and Belween Richard A, Kalnlk and Nonnan p, Kalnlk, as Lmor and
Sbubin Ser"ices, Inc" as U-, Cor tbe
Real Property localed all430 Poinsellia, Santa Ana, CaliCornia .
U Base Ren!. "Base Renl" shall be payable in tbe amoUDts sel Cortb in Ihe sebedule below, Sucb
amounlS represenl a discounl over lbe Cair markel value oCthe Premises, wbicb discount Lessor bas agreed 10 based
on U-'s agreemenl to improve Ibe Premises (wilb improvements approved by Lessor pursuant 10 Ibe Construction
Work WteroCeven dale herewilb )al a cu,t ioU- oCapproximalely $300,000, ICLessee's actual COSts are less !ban
5300,000, !ben, one-balC (1\) Ibe amount oC sucb sbortfall sball be amortized al eigbl pereent (8%) per annum and
repaid as additional Base Renl overtbe fir.. 60 mont'" oC!beoriginal Tenn oClbe Lease, For example, iCLessee's
aclual co.., Cor Improvements con'trucled In aeeordance with !be Const""'llon Work LeUer lotal $260,000, then tbe
sbortfall oCS40,OOO, pi.. inlerest ai 8% per annunt, ,ball be payable by Lessee as addilional Base IW>I due oCS405,50
per monlb Cor Ibe first 60 monlbs oC Ihc Tenn,
M2n1Jy
1-12
13.24
25.36
37-48
49-60
61.72
73.84
85-96
97.108
109-120
~
54,000
$-1,000
55,000
$6,000
56,000
57,000
58,000
58,000
58,000
510,000
2,3, ~: Lcssee sball be responsible Cor verifying Ihat Lessee's inlendcd usenClhe Premises
is pennissible under all Applicable RequiremenlS, including wilhoullintilation zoning, fire and saCely regulalions,
Lessee shall be fully responsible for Ihc cosl of ADA compliance improvcmcnlS or ahmlions neeessitaled by Lcssco's
use cf Ihe Premises. or by any improvemenls or ahemlions to lbe Premises lnade by or at Ibe direction oC Lessee,
Lessee sball also be fully responsible for making all allemlions and repairs 10 Ihe Premises resuhing from or
n::cessi""cd by Ibe Cailure oCU- and/or Lessco's con"'Clor(s) 10 cnmply wilb Applieable RequiremenlS, or Crom
Lessee's and/or U-'s contraClo,," uûlizalion oCHazardous Subslanccs allhe lime oC con5lrtlClion oC improvements
cr allerations 10 Ibe Premises in violalion oC Applicable Requirements or wbicb are delennined by applicable aulborilies
10 pose a beahh risk 10 occupanlS oC Ihe Premises, .. ~Jl f::7
",¡,Ie, -S,....." (} 7"lJ) It'\
12,3(a) RecuDture liDOn SubleaS\1, NPtwitbslandinganytllingseHonhin Subpa",grapb 12,3(a), D"lsewbere
in Ibe Lease, to Ibe conl""Y, U- sball pay to Lessor, asaddilional Renl, JnI > percenl~) DClbe excess, ifany,
oClbe renl paid by any sublcsscooClbe Premises over lhe amounl DClhe Renl payable by U- under lhe Lease,
23,
Notices, Tbe Collowing addresses are specified Cor nolice purposes:
To Lessor:
Ricbard A, Kalnik
clo Maralhon Triad Carpel Mills
1348 Nortb Sanlia80
Santa Ana, CA 92701
Phone: (714) 547-1859
FAX: (714) 547-1393
Wilb a copy 10:
Nonnan p, Kalnik, Esq,
1501 Nonh Broadway
Santa Ana, CA 92706
Phone: (714) 54"'848
FAX: (714) 972-2272
Tou-:
Sbubin Ser"ices, Inc,
P,O, Box 118
Santa Ana, CA 92702
AUcnlion: Donald Shubin
Phone: (714) 542-7701
FAX: (714) 542-8435
"",",-,wp4
040"',
Provided, Ilowevcr, ",at Cor nOtice whicb cannol be """ 10 a post officc box (c'8, "'"ified mail) Ihe
addrm oC Ihe Premises may be used Cor nolice 10 U-,
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:wo.
50, ()¡¡ ion to Extend: Subject 10 the provisions of paragraph 39 oflbisLcase, ù:ssec shall have
the option 10 extend the Tenn of the Lease for one (I) addilional five (5) year period, Base Rent for such period shall
be equal to the then fair market value for similar type properties in the "Santa Ana Induslrial" area , bul in no event
shall Base Rent be I... than the Base Renl due for the last IIIOßlh of the original Tenn, Wrillen noti.. of Lessee's
election 10 exereise the option shall be deliver"" 10 Lessor no carlier lhan eight (g) montþs, nor later than six (6)
months, prior to the expiration of the original Term of the Lease, If Lcsscc fails timely 10 exercise or is not entilled
10 exercise Ibis option 10 exlend, then Lessee's option 10 extend shall automatically lapse and thercafter not be
exercisable by ù:ssec, Ifù:ssec is entilled to and docs give notice in the manner and within the time frame sel forth
in Ibis paragraph, then the Term shall be extended for au additional sixI)' (60) months (lhe "Additional Term"), on
all of the conditions set forth in the original Lease; provided, however, that:
(I) Base Rent for Ihe Addiûonal Term shall be equal to the lhen 'FairMarkelRental Rate" (as
defined below) for the Premises, bnt in no cvcnt shall such Base Rent be I... than the Base Rent for the Premises
effective as of the last month of the Term, Lessor shall, io response to and within thirty (30) days after receipt of
Lessee's notice of exercise oflhe option 10 exlend, give ù:ssec wrillen notice of the then applicable "Fair Market Rental
Rate" as determined in good faith by Lessor, "Fair Market Rental Rate' means the then prevailing aunual rental rate
per square foot of rentable area in comparable buildings in the Sauta Ana Industrial area. comparable in area and
location 10 the Premises, Not later than lhirty (30) days after Lesso(s notice to Lessee of the applicable "Fair Market
Rental Rale', ù:ssec shall timely notify Lessor ofù:ssec's election 10 (i) have the "Fair Market Rental Rate" delennined
by the "appraisal" procedure described below, or (ii) accepl Lesso(s determination of the "Fair Markel Rental Rate',
or (iii) elect not to exercise ù:ssec's option to extend, Ifù:ssec fails to notify Lessor within such thirty (30) day period
of Lessee's eleclion, Ihen ù:ssec ,hall be deemed to have accepled Lesso(, determination of'Fair Markel Rental Rale"
aDd 10 have waived its right 10 an appraisal, Lessee', notice under ,ubparagraphs (i) or (ii) ,hall be deemed Lessee',
exercise oflhe option 10 extend Ihe Term,
Ifù:ssec exercise, its option 10 extend and timely elects 10 have the 'Fair Markel Rental Rale" delermined
by appraisal, then each party ,hall appoint an appraiser within fony (40) day, after 'uch exercise dale, The two
appraisers ,hall within a period of five additional day" agree upon and appoint an additional appraiser, The three
appraise" shall, within thiny (30) day, after the appoinlment oCthe Ihird appraiser, delermine the Fair Markel Rental
Value of Ihe Premises in writing and ,ubmit their repon 10 all of Ihe panics, The Fair Markel Rental Value ,hall be
delermined by disregarding the appraise(, valuation that diverges the grea'e,' from eaeh of Ihe olher two appraisers'
valuation" and Ihe arithmetic ß1Can oflhe remaininglwo appraisers' valuation, ,hall be Ih. Fair Markel Rental Value,
Each party ,hall pay for the seryi... of the appraiser selecled by it. plu, one hair of Ihe fee eharged by Ihe Ibird
appraiser, and one half of all olhercost' relating to the determination of Fair Markel Rental Value;
(2) There ,hall be no commission, payable in conneelion with Ihe exercise of the
option 10 extend; and
(3)
Thi, option i, personal 10 Le,see and there shall be no funher oplion' to extend the Term,
5 I, Earlv Termination-Le,see, Within 'ixty (60) day, after the d.',-oflheexecution oflhi, Lease
by all panics herelo, Lessee ,hall (i) sali,fy ilsclfwilh rcspccl 1o all approvalsand permits from governmental agencie,
or dcpanme... which have or may have jurisdiction over lhe Premises and which Lessee deems necessary or dc,irable
in connection with its imended use or improvement of the Premises, including but not limited 10, permit, and approval,
required with re'pecl 10 zoning, planning, building and safely, fire, A,nericans With Disabililies Act requirements,
. transponation and environmental maUe", (ii) sali,fy ilsclfwilh rcspccllo all aspects oCthe phy,ical condition oCthe
Premises, including wilhoullimitalion its fitn... for ù:ssec', intended use and environmental condition" and (iii)
,ubmil in good faith a response to the requeSt for proposal for the City of Tustin SoUd Waste contract and determine
whether Le,see i, awarded ,uch contract. Ifù:ssec determines (i) that any ,ueh permits or approval, or improvements
cannot be obtained or consl""'led upon terms and conditions reasonably acceptable to Lessee, (ii) ù:ssec delermines
in good faith that the Premises i, not fit for ù:ssec', inlended use, or (iii) lhat the Cily ofTustin doc, not award the
Solid Waste Disposal conlract 10 ù:ssec, then Le,see shall have Ibe option to terminate thi, Lease upon written notice
10 Lessor within said sixI)' (60) day period,
52, Earlv Termination-Lessor, If Lessor doIennines at any time during the Tenn of the Lease
thaI Lessor has a bona fide opponunil)' to sell the Premises, theo Lessor ,hall have the option to terminate Ibe Lease
upon one hundred twenl)' (120) day, prior wrilten nolice 10 ù:ssec, in whicb case LessorshaU reimburse Lessee for
the unammonized (over the ten year term of the Lease) ponion of the eo't of Ihe improvements 10 Ihe Premises
constructed by Le,see pursuant 10 Ihe Construction Work Lellor,
53, Riebt ofF;rst Refusal. NotwitbstandingLcssor', righllo tenninale thi, Lease.. set forth above,
and provided that thi, Lease i, in full force and effect and ù:ssec i, n" then in default hereundcr, Lessor agree' not
10 sell or agree to sell d.. Prcrniscs to any lhird pany purchaser without firsl offering Lessee II.. npponnnil)' to purd....
the Premises on Ihe same lorlO5 and conditions upon which Lessor inle"" 10 sell lhe Premises, Lessor ,ball offer such
righi by noûfying Lcsscc in writing ofthe material tenns and conditions upon which Lessor intend, to sell the Premises
(the "Offering Notice'), Lcsscc slrall have twenty (20) day, from the date of ù:ssec's receipt of the Offering Nolice
wilbio which 10 notify Lessor of either (a) ù:ssec'a election to porchase the Premi... upon Ih. lerms and conditio..
Sol forth in the Offering Nollce, or (b) Lcsscc', election not 10 """,hase the Premises upon such lerms and conditio..,
In the event Lcsscc notifies Lessor Ihat it cIoc8 not elcct to purchase the Premises upon such tenn" Lessor ,hall
"""""""""
"'700
If
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lbcn:afIer be C= to offer for sale, sell ¡¡¡d enler into I contraa for the sale of tbe Premises willl the tlUrd party upon
lbc lerms ¡¡¡d "lOdino.. set fortb iolbc Offering NoIia:, If 00 such sale occws, lbco Lessor sball again provide L<sscc
willl ao Offeri°l NOIicc bcfOIC scllilll or oO"erinllO sell the Premises, In the ,cvcot L<sscc Ii... Lessor ootia: lI1aI
1.= docs elect 10 pwcbasc the Premises upon such lcrIRs, Lessor ¡¡¡d L<sscc shall, for a period of forty (40) days
after Lcssor's receipt of1.=',ooûa: of c1cdion .. purdwc, enler inlo good fairh acgotiaûo.. fol Ihe pwposc of
cntcriJ>¡ ¡o.. I dclinin.. a¡1CCIDCDI '" die purebasc ¡¡¡d sale of Ibc PlCmises i"""'p",atioe. wilboutlimilaûoo, Ihe
lenDs and COodiÔ0R5 5CI forth io the Offeriol NoIia: ¡¡¡d ouch other reasonable Icnns and conditio.. as arc co1lUllßßly
contained ill ouch IIn:cmcnts. If lbc Parties arc unable IIICC upon tile Icnns ¡¡¡d conditio.. of "",b an IlICCmcnI
wilhio ouch forty (40) day peljp4,lbcn Lessor sballlhcrcaftcrbe C= 10 offer for sale, sell and enler ¡010 a cootraa for
die sale of die Premises willl 111¥ tlUrd party upon the Icnns ¡¡¡d conditions scl forth in lhe Offerin¡ Noûa:. 01 upon
lenDs ¡¡¡d coodilioos more favonble 10 Les.sor for a period of ODC (I) yell, If DO sucb we occurs, rheo Lessor ,ball
apio provide 1.= willl ao Offerin¡ NoIia: berOIC sellin¡ or offerinl to sclllhe Premises.
54. Effect of Addendum: ExceptIo Ibc cx1coI ¡he Lease bas been amended by Ibis Addendum, the
JCDtainin¡ Icrms and conditions of the Lease oballlCD1lÌD unmodifi and in full force and cß'ect. In Ihe ovent oCany
inconsistency bet_o the Icnns ¡¡¡d œnditiOllS of tIU, Addendum lhe Lease, the Icnns and conditio.. of tIU,
Addendum oball ","lrol.
"Lessee"
By:
...............,......
""""
..
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CONSTRUC110N WORK LEITER
"
In cnnncction with the StandanllndustriallCommelc Single-Tenant -Lasc-Nct. daJcd April 7, 2000 (the
"l<asc") 10 whi<h 1iU, Wod; Lctacr (this "Wod; Leller") is allachcd and ia """idcraùon ,DC the mutual covenanlS
bcrcinaJla "'1IIaÌn<d, lc5snr and 1.= agree as Coli..."
:..;
I.
WORK SCHEDULE
'-,
A....hed b=to as Exhihit "A. is the schedule (the "Wad< Schedulc") -., fonh the timdablc f~
the prcpara.... and approval of all space plans and -g doiwings and COf the planning and cnmplClion of the
iastallaIi.. or...... impn>vem<nts 10 be CIJJISU1Id<d by 1.=.. Dr in the: "Premises" (as ddinaI ia the: l<asc) (the:
"Tenanl l"'provo...nlS"). Th< Wod; Schc:duk.... fonh eacb or the: various items of""d; 10 be do... by Of appttMIs
10 be given by Lessor and 1.= ia "'llI1CCÙon with the: campl""oo DC the: Tenant Improvoll1Cll15.
..
2.
SPACE PLANS AND WORKING DRAWINGS
..
L ~ 1.= shall cause spaa: plans to be prq>ared showing the: """"ptual plans
(e,g.,loca..on of stnIctur<s, walls, ú:n=, hardscape, landscape, lighting and any otbcr improvemcnu) for the: Tenant
ImprovcmenlS which L= iatends 10 "'nsInIcI and shall submil same: for lc5snr's approval. wbicb shall Dol be
unreasonably ..ithhcld Of delayed If Lessor disapproves any aspect DC the: spaa: plans. Lcssot's ....... of disapproval
shall set forth the: reasons Cor disapproval and suggesaed """"ons 10 the: spaa: plans ia order 10 satisfy thc cona:ms
orLcssor, Lt:ssa: shall cause: the spaa: plans 10 be revised ia aa:ordance with Lessor', commonlS and resubmit same
for approval,
..
b, Plans and Soecs. 0"", the: spaa: plans bave bcon approved by lc5snr (as approved, the
"Space Plans") 1.='s space planner and/or architect shall pRJ>llC d.....led plans and spccificalio.. ror improvements
'0 the Premises basal on the Space Plans which sball include, but not be limited 10, locatio.. of doors, pan;ÙOIÚOg,
electrical fiX1W<5. ouO... and switcbes, plumbing furt..... extraordioary lloor loads and otbcr special Je< ui=nts,
Lessee: shall submit ,uch d.....led plans and spa;ifica..o.. to Lcssof Cnr approval, which shall DO( be unreasonably
withheld or delayed, lflc5snr disapproves any aspect or the: plans and specifica..ons,lc5sn(, noIice of disapproval
shall also set Corth ilS reasons Cor disapproval and suggesaed """"0..10 the: plans and spccificaùo.. io order to saùsfy
lc5snr's concerns,
,..
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b, Worldne Dra..ines, Based upon the: pia.. and specifications approved by lc5snr (as
approved, the "Plans and Spccs") for the Premises, L='s architect and eogioccrsbaJI pn:parc:final working drawi.gs
of the Tenanl Improv......IS, Th< womng doiwings shall iocludc arcbi=uraJ, mechanical and electrical doiwings
ror the Tenant Improveme.lS. L= shall then submit sucb ""mng doiwings to Lessor ror approval, wbich shall
DOl be unreasonably withheld Dr delayed, lflc5snr disapproves any aspect DC the: womng doiw-iags, L='s noùce
DC disapprovalsball also "'I Conh ilS ICI5Oß ror disapproval and suggested revisions 10 the womog drawiogs in order
10 saùsfy the """"m5 DC Lessee.
c, Chances in Plans, Any changes Je< uested by Lcssa: io the Space Plans, Plans and Spccs
Dr working doiwings Dr any other plans and speci/icalio.. allOt approval the:reoCby Lessor sball be prepared by Lcssa:
aI Lessee's sole cost and expense and shall be 'ubject 10 Lcssof', approval, Lcssa: shall be liable (or any delay' in
completing the Tenant ImprovemenlS, ifany, resulùng úom such cbanges.
3,
BUILDING PERMIT
After approval by lc5snr and L= of the: ""mng doiwings Cor the Tenant Improvcments, Lcssa:
,ball submit the drawings 10 the appropria.. governmental body ror plan cbecking and a buildiog permit L=, wilh
lc5sn(s cooperation. shall cause: 10 be made any change ia the: working doiwings J\CCC$SIU)' 10 Db..in lhe building
permit After final approval of the: ""mng drawings (os so approved, the: "Womng Drawings"), 00 funher changes
therelo ..ay be made without 0.. prior wrillen approval orboth Lessor and Lcssa:,
4.
COST OF TENANT IMPROVEMENTS
'-,
Lessee diall be responsible Cor payment orany and all cosu incum:d in colUlCClion with col\stJUcûon
DC the Tena., Improv....n", incloding without limilalion labor, malerials, pennilS and Cees,
"
CONSTRUC110N OF TENANT IMPROVEMENTS
After the Wod;ing Drawings Cor the: Tenant Improve...nlS bave bcon appr...ed by Lessor and a
building penuit bas bcon i..ucd. Lcssa: ,hall cause: ¡Is conItac1Df to complac II.. Tenant Improv....nls in aa:ordancc
w¡'h tl.. approved Space Plans, Plans and Spccs and Working Drawings, Delay, in completion oC II.. Tena"l
Improvemen" shall DOl delay lhe CoDUllCnccment Da.. ... ronb in Section 1.3 or the: l<asc.
,
"""ikwo.u,wpd
040'00
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6,
FAILURE OF LESSEE TO COMPLY
/uly fail.... of l.cssc: 10 obtai. Lessor', I l llUVal of improvemcnls 10 \he Premi... prior 10
CODStnIctioD -by l.cssc: ,hall be dccrocd a default _'0 \he Lcao:. Upoo \he oa:uneocc of such a defaull
by L=, 1.=0, shall have all remedies available .. law or ",uily 10 a !.=or api'" a dd'aulû.. IeDant pwsuau11o
a writ... lca5c, iocludin."" DOIlimitcd 10 those set forth ill SccIioo 13. Dcfj¡u1~ B...ch; RÓmcdics, aDd SccIio. 31.
Auomeys' Fees, of \he Lease, '
,:,-
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,',','
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u..il<worl<2,wpd
040700
By:
GUARANTY OF OBUGA TIONS
OF Lessee PURSUANT TO LEASE
,'-
'" ",osidcl3ûon of Ihc CXCCUÛDD by RICHARD A. KA TNIK ("LcIsor") .;c that certain lease dated
April 7, 2000 (Ihc "ùasc"), bc:twcco Lessor, aslaodJnnl, aod SHUBIN SERVlCES,INC., a California corporation,
as Lessee ("Lessee"), aDd.... ÎDduc:cmeal to Lessor to cx=IClhcLcasc, &he UDdcnigocd bcJdJy ¡uanoIcc toLcssor
aod to its su=sson aDd wi"" Ihc paymeol by Lessee wboo due of the root aDd all 0Iher ..... provided for ill Ibe:
ùasc aod Ihc promp< performance by Lessee of all oflhc provisiaos of the Lease aod any and all modüicati... or
cxICosioDS - ¡nlbe: eve.. of Lessee's failwe. or the failure of i.. successors or assig... if any, 10 pay said.....
or 10 rcodcr..y oIhc:r performance r<quirocl of Lcsscc, wboo duè, the UDdcnigotd, aod eacb of tbcm, will for1hwilb
pay all amoun" that may be clue aod will fortbwilb perform all oflbe: provisiODS of said ùasc to be peñonncd by
Lessee and pay all damages !hat may resull m.m Ihc ..n-pcrfonoancc lb=oCby Lesscc, The undersigned bcrcby
"'..... 10 and waives DOtice of any CX1CDSi... of Ume for performance wbieb Lessor may pant 10 Lessee and to ..y
modificatJODS or - of said Lease or cxICDSIODS or rcoewa1s nr Ihc term _10 which Lessor and Lcsscc,
or tbcir suca:smrs aod assigns, may agn:c. The undersigned expressly waive the provisio.. of Section 2S15 oflbe: Civil
Code nr Calirol1Ùa.
'0";
The undersigocd waive notice ofacccptaDCC oflbis Guaranty aod of..y default in the payment of
""'~ addiUooa! """ or any otber ........ ",otaiocd or roscrvod In said Lease, and noUce nr any breacb or non.
peñonnance or any of lhc "'venanl~ condilio.. or agrccmeDlS ",ntaiocd in said Lease.
-
The undersigocd funhcrag=!hat Ibe liability undcrthis Guaranty or the undersigned, and eaeb or
them, sba11 beprimary,and!hal in any righl of action wbieb may a=uc 10 Lessor, ilS successors and assiS", under
said I.cascorthis Guaranty, Lessor and lIS SUC<:CSSOrs or assig.. at tbcir opUon may proceed against lbe undersigned,
or..y oIthem, witboul having!aken or CODUDCIICCd any action or obtaiocd..y judgment agai..t Lcsscc and \\ithoul
applying any securily deposit or other property or Lcsscc or any oIlIer person beld as eollateral securily ror Ibe
peñonnancc of the obligauons of Lessee under lhc Lease or oIhcrwise 10 the discharge of lhc obligations of Lessee
under lhc Lease. The undersigocd waive any righl 10 requi.. Lessor 10 pursue any ..mcdy in Lesso~s power against
Lessee and waive as defenses to the obligauo.. be..uncler any and all righlS relaung to any anu-defieiency law,
including without limilalioo any right 10 a fair value bearing under Calirornia Code or Civil Procedure Seclion 5S00,
and further waive as defenses Ibe pleading orderense oIany Slalute orlimilatio.., Anypanial paymenl, perfonnance
or other eircumstana: which operates to loll any slalule or limitations as 10 Lcsscc shall operale to lolilbe SUllule or
limitatio.. as to Ibe undersigned, and each of them, under Ibis Guaranly,
'.
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The undersigi>cd agree lhal io Ibe event Lessee shall bca>me insolvenl or shall be adjudicated a
bankrupl, or shall file a petition ror rcorganiZ-alion, anangemeol or similar ..Iiefunder any presenl or future provision
of the Federal Bankruptcy Code, or any other act for the ..Iicfofdcblorsor aoy similar acts or law, or irsueh a petilion
filed by creditors of Lcsscc shall be approved by a Cow1, or if Lessee shall seck a judicial readjustment or the righlS
or ilS eredilors under any presenl or future federal or stile law or ir a receiver or ,II or pan oILcsscc's propeny and
assets is 'ppoinled by any slate or rederal cow1, and in any such proceeding Ihe Lease shall be tenninaled or rejected,
or the obligations orLessee thereunder shall be modified, the undersigned, and each ortbem, will immediately (a) pay
10 Lessor, or lIS SUC<:CSSOrs or wig.., 80 amounl equal 10 all uopaid "01 and olher amounlS accrued under the Lease
10 the dale orsuch tcnninalioo, rejection or modjficauon, plus (b), at the oplion or Lessor, lIS successors and assigns,
. eilher (i) pay 10 Lessor, or ilS suc<:cssorsorwigns, an amounlequallo lhc lbencash valueor'be ..nt andaddiuonal
..nt which would have hccn payable under lhc Lease for lbe unexpired portion orlhc lenn orlhc ùasc if it had DOl
hccn lenninaled, ..jcctcd or modified, less the then cash rental value or the premises which... the subject of the Lease
for such unexpired portion of the lenn or the Lease, taking iolo ",nsidcralion the ùasc as modified, if such is Ibe: case,
or (ii) iflhc Lease is tcrminaled or rejected, execute and deliver 10 Lessor, or its successors or assigns, a new lease willI
the undersigned, or ciibcr of Ibcm, at Lcsso~. option, as Lessee for the balance orabe tenn and upon lbe same lenns
and eondiunns as the lenninaled or ..jcctcd Lease, and wiD pay Lessor interest on the amouolS which bca>me payable
aod are designated in (a) aod (b)(i) abÒve at the maximum per annum rate then chargeable by Lessor under the Ibcn
applicable uswy law fro.. the dale oIsucb lenninaûon, ..jectiDD or modificauon 10 lbe:dateofpaymen~ including any
period of ume aAcr any breach or default bereunder. '
Neither the obligalion or Ibe: undersigned, ~ each of Ibcm, 10 make paymenl in accordance willI
the lenns orlbis GUIlanly nor any remedy Cor theenfo=mcnI thcrcorshall be impaired, modified, changed, relcased
or limited in any manner whalsoever by 8oY impainncot, modificalion, change, release or limilation or tbe liabilily of
Lessee, or lIS _Ie in bankruplcy, or otherwise, or of 8oY ..mcdy for II.. enforcemcnl thereor, rcsulung from the
operation nr any presenl or CuIU.. provision or lbe Federal Baokruptcy Code or any otber Slatule, or Iiom the decision
or 8oY CDurt.
Lessor may, without notice Ioor demand upon the undersigocd, or 8oY nm...., and wiLhoul alTecting
the obligauon or the undersigned, and cacb of Ibcm, he..undcs-, lake and Imld securily ror Ihe obligalions under Ibi,
GUIlanly and!he Lease, add 10, exchange or release any such securily, apply or reali", upon sucb securily as Lessor
dctcnni... and ..Iease, add or sub,""" 8oY one or more guaraotorl ,bould oto.. d..n one person or enlily be or
become liable on Ibis Guaranly. Lessor may exercise any right or remedy il may have against Lessee or any security
held by Lessor wilhout impairing the obligation of the undersigned, or any oC lbem, on Ibis GuaranlY, and the
undersigned, and eacb of Ihe.., waive aoy deCense arising out oC the absence, impairmcnl or loss or any right or
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J<imbuncmcm.lllbrogaû.. orolhcr remedy of the uodasipcd against l.csscc ...any such security, wbclbcr rcsultin¡
from any cJcaioo by Lessor or oIbcrwix.
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Tho UDdcrsigned ....... the rosponsibiIity to keep informed oflbc financial <=dition ofl.csscc and
aU 011= cin:umsWK:os bcarin¡ upoDIbc risk of "D-pa"...." nnn-p:ñnnnancc by Lcsscc n¡>dcr Ibc r.u.c. and all=
IhaI. ....... . rcqucot fur such inf..-x.. by Ibc WIdcrsi¡øcd, .. any of 1bcm, Lcssnr shall have .. duty to advise Ibc
UDdcrsigncd, .. any ol1bcm, of ioformtioa knowu to L..- o:pr1ÜD¡ such coodilion or - Liability of
!he UDdcrsipcd WIder thiI GumoIy sbo1l be joiot and ........ &lid, if... or more of the undcrsipcd is ao individual,
sbalInot be 1CnIIÌDaIcd by !he death oflbc UDdcrsigøcd. .. any of1bcm, and all obIigalinm ofLcsscc cxJ¡tiD¡ prior to
Ibc death of Ibc UDdcrsigøcd. or any of 1bcm, bul ........... due IbcIcaIIcr .. due but unpa;d aI IIIe death of IIIe
UDdcrsigøcd... any of1bcm, sbalI...meand - poyabIc by Ibc survivin¡ undersigøcd. ifany, and IIIe csIaI«s)
of Ibc uodcni¡ncd. Tbis Guadnty sbalI bind Ibc UDdcrsi¡ncd. Ibcir rcspccIive suc:ccssnn, odminisualon, cxCCUIon,
bcin and wi....
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Should any action allaw or iD equity be filed.. iastilUlcd 10 IX>IISUUC IIIe lenDS of; for !be br=b of;
to cnrD"" Ibc lenDS of; or to ia/crplcI.. dedan: Ibc rigbls ollbc parties under Ibis Guaranty, the successful pany(ics)
ill such action sbalI, ill addilion 10 all otbcr relief aJl'nnIcd to Ibc successful pany(ies), =over ill or their costs and
cxpc:nses (wbctbcr or notlaXablc) and RaSOnahlc allDnIcyS' f=s incumd i. such actio..
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Tho UDdcrsi¡ned .- dial Ibis GumoIy is made and CXCCUI<d under and shall be ""nstrucd i.
-- with thc laws oflbc Slalc of Caliroroia, dial thc Cowu of the S.... of California shall bave jurisdictio.
of any actio. brought upon this Guanoay and thaI VCIIOC may be pb<cd io !be Soperior Court of Ibc Coonty of O"",ge
with scMce of process in aa:ordaocc with !be Califomia Code of Civil Proccd... as Iheo io cffcd.
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Lessor may, with ..witbout notice to thc uodasi¡ocd, Dr any of1bcm, wiJD Ibis Gua"",ty i. whole
Dr io part. The undeni¡ned expressly waive !be pnwisioas of Seetinn 21-1S of !be Civil Code of California,
All notices required or pcrmiucd bcn:undcr or at law shall be io writing and delivered by peROnal
deliVCl}' or ccrtiIied or registered mail, rcIum rca:ipllCC 1l<Sl<d. Notices to Lessor shall be 10 ill addIcss specified io
!be Lease and ootices to Gwuaotor sbalI be 10 GuaraDIo<'. address ... fDnb below Ibeir .igoalllICS. Any .Dtice
pcnonally delivered shall be eJl'cctivc upon deliVCl)'. A1zy onUcc sent by regi5lcrcd Dr cenified mail. poiIa¡e prepaid
and properly addressed shall be eJl'cctivc ODIIIe dale of rcccipl. refusal or non-dcliVCl)' indicaled DO Ibe relum rcccipl,
Eilber Lessor or !be undersigned may change ill or their address for Dotices by notice 10 Ibe olber in Ibe manner
specified i. Ibis par&gJ>Pb.
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EXECuœD Ibis ~ day of April, 2000
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MEMORANDUM
DEP Al\nlE~T OF TMNSPORT ATION I
BI'SINESS TRANSPORTATION AND HOIISING AGEN,Y. SOliTHER" REGION
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DATE:
FEBRUARY 23, 1999
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TO:
BRENDA MORRISON, CHIEF
REAL PROPERTY SERVICES
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FROM:
MICHELE SMITH
ASSOCIA TE RJW AGENT
EXCESS LAND SALES
REGARDING:
EXCESS LAND COUNTER OFFER
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ON DECEMBER I] 1998 AN OFFER TO SELL EXCESS LAND AT THE APPRAISED VALUE OF
S WAS MADE TO THE AD.10rNTNG OWNER OF PARCEL Oï389J-Ol-Ol
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THE OWNER HAS PRESENTED THE SALES OFFICE wrm: THE FOLLOWING COlJJ'.iTER OFFER
. S - PURCHASE CASH OFFER TO CLOSE \V1THIN 90 DAYS,
. S_PURCHASE FINANCE OFFER WITH 25% DO\1lN AND THE STATE CARRYING AT
8% FOR 10 YEARS,
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THE EXCESS LAND PARCEL IS LANDLOCKED AND IS NOT SELLABLE TO ANY OTIŒR
BUYER. I PROPOSE YOUR APPROVAL OF A FINAL COUNTER OFFER TO THE BuYER AS
FOllOWS
.sw
1 'URCHASE CASH OFFER TO CLOSE \\'ITHIN 90 DAYS,
THJS SALES PRiCE REPRESENtS AN 11% (NON-SUBSTANTIAL) REDUCTION FROM THE
APPRAISED V ALOE, ALSO, THIS OFFER IS IN THE STATES BEST INTEREST AS A SUCCESSFUL
SALE \\'Tll ELIMINATE LONG TERM MAINTENANCE COSTS
RfC:Ofv1MEI\'DED BY:
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,Ç7¡ -!t.n{~.J'
BRENDA MORRISON, CHIEF
RIGHT OF WAY REAL PROPERTY SERVICES
SOl '1'[ IERN RIGHT OF WAY REGION
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APPROVED BY
C~~ l ~,~IC ~!(r(--
CAROL DEVORKIN, OFFICE CHŒF
REGIONAL RIGHT OF WAY
REAL PROPERTY SERVICES MANAGER
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PURCHASE AND SALE AGREEMENT
FULL PAYMENT
In this agreement dated Februar:/26.1999 by and between Nonman P. Katnik
hereinafter known as BUYER and STATE OF CAUFORNIA, DEPARTMENT OF
TRANSPORTATION. hereinafter known as SELLER, the parties agree as follows:
For the sum of_HUNDRED THOUSAND DOLLARS (..- , Buyer herebv
agrees to purchase and Seller hereby agrees to sell th~Perty common!Ý
known as:
Those portions of Block "A" of the Dresser Tract, in the city of Santa Ana, County of
Orange. State of California. as shown on a map recorded in Book 12, page 83 of
Miscellaneous Records, in the office of the Recorder of Los Angeles County,
California.
Legally described on Director's Deed No, DDU:OT3Q83-O1-O1
attached as Exhibit "A".
a copy of which is
Subject to the following conditions:
All safes over a value of $15,000.00 are subject to the approval of the California
Transportation Commission. (GTC).
II
Tendered with this agreement is a check in the amount of $ $10.000.00 as a
deposit for said property. Said demand shall be made, in writing, following approval
of the sale by the District Office, at the time the fully executed Director's Deed is
available for delivery and recordation.
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The buyer agrees to pay any and all recording fees, documentary stamp tax and
monumentation fees chargeable by the County Recorder. At a later date, the Seller
will request that these fees be forwarded.
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In the event that California Trõnsportation Commission fails to approve this sale, all
monies heretofore paid by the Buyer will be refunded including interest thereon.
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, It is expressly understood by the Buyer that the ñght, title and irrterest in the property
to be conveyed shall not exceed that vested in the State of California and that no
policy of title insurõnce will be furnished by the Seller. If a policy of title insurõnce is
desired, the Seller will obtain one, upon request, at the Buyers expense.
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The property is being conveyed subject to any special assessments, restrictions,
reservations or easements of record and subject to any reservations contained in the
Director's Deed. Buyer may examine any information the Seller has relative to these
matters.
VI
The Seller is willing to process this sale at no charge to the Buyer, except as set
forth in paragraph !II above, or the Buyer, at his option-may open an escrow at his
own expense. No escrow fees will be paid by the Seller.
VII
The Buyer and Seller agree that title to the property being conveyed shall pass when
full purchase price has been paid in full and the Director's Deed has been recorded.
The buyer shall have no use of the property until the Directors Deed has been
recorded.
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the above tenns and conditions of sale.
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Please indicate exactly how title is to be vested
IUD í", '"'\ p. I¿'~ ~,Ic.
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The terms and conditions of the above agreement are hereby accapted, subject to
the a~~roval of the California Transportation Commission.
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MICHELE SMITH
Associate Right of Way Agent
DeparcrnentofTransportation
Excess Land Sales
Phone (714) 724-2444
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Attachment
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Apri17,2000
UJJ u,J~~~U
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City of Tustin
300 Centennial wæ¡
Tustin, CA 92180
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ATTENTION:
Mr. Joe Meyers
Senior Management Analyst
Public Wor1c:l
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REGARDFlNG:
Federal Disposal Service
Property Us. at 1430 & 1502 N. poinsettia Street
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Dear Mr. Meyers.
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Pursuant to the request of Mr. Don Shubin of Federal Disposal, we have reviewed the
.. J development and use of the above property for their Operating Facility in
accordance the bid requirements as requested by the City of Tustin. In preparing this
evaluation we have visited the proposed site, met with the lite owner, and planning
staff of the City of Santa Ana, as well as reviewed all of the City of Santa Ana
development criteria for the propœed use.
The site is zoned Heavy Industrial and the proposed use as an Operating Facility is
consistent with that zoning. Tha consolidation of the second parcel at 1502 Poinsettia
an 1-5 remnant Into the existing parcel will nassatate Site Plan Review by the City of
Santa Ana.
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A specific development plan Will be prepared and submitted to the City of Santa Ana for
site plan review and approval. Itemized below are the major elements to be
Incorporated in the development plan as determined from discussions with City
planning staff. '
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There are currently a number of structures on the site, which we believe are both
conforming and norH:Onforming, to the appropriate code standarda at the time of their
construction. It would be our Intention to demolish and remove all nolKOnfonning
structures, leaving three prefabrICated metal building that appear to of been built In
conformance with current codes at the time of there construction. 1he8e building would
be improved to provide disabled accen in accordance with State of Califomla Title 24,
Part 2 (CSC) and AmerIcan with Disability (ADA) standards as neceuary.
...
Etúðtt /I ~
16421 WIMBLEDON LANE HUNTINGTON BEACH, CA 92649 (714)840-5488 FAX (714)840-0446
ARCHIiECTURE PlANNING CONSTRUCTION OEVë!.OPMENT
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Apri17,2000
City Of Tustin
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The site would be enclosed on the Penn Street and Freeway on-ramp Iides with ....
foot high solid masonry wall and landscaped setback where possible, The masonry .
wall would be articulated with landscaped Indentations with wrought iron openings.
The lot linea adjoining existing Industrial uses would be enclosed by 8 ~ high
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The unpaved portions of the 1502 lot and drive approaches would be graded and
paved based on heavy truck usage design stsncIarcls, to provide truck and automobile
par1<ing, Site and security lighting would be provided In accordance with the City of
Santa Ana standards.
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Essentially the proposed improvements would be similar to Federal Disposals current
facility at 1661 E, Palm Street In Santa Ana, which has been well recaived by both the
City and the local neighborhood.
In the interim while the Poinsettia property is being developed as well as in the future if
so desired the 1661 E, Palm Street property could be used for customer service
operations and is In complete conformance with disabled access requirements.
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The specific final Improvement requirements will be determined during the Site Plan
Review process by the City of Santa Ana, ,which takes approximately 4 weeks.
However, from our previous development of the Palm Street property in Santa Ana and
discussions with staff on this Poinsettia property we feel this good representation of the
development that is likely to be required.
If you have any further questions please do not hesitate to contact me
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Sincerely
ELUOTT ASSOCIATES
Bert Elliott, Architect
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BUDGET
1~ONPOmSETTIALOT~PROVE~ENTS
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ELECTRICAL
TOTAL
AMOUNT TOTAL I
5,000.00 5.000.00
5.000.00
15.000.00 20.000.00
5,000.00 25.000.00
5.000.00 30.000.00
30.000.00 õO,COO.OO
15.000.00 75.000.00
15.000.00 90.000.00
25.000.00 115.000.00
115.DC1O.DO
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'TYPE OF WORK TO BE DONE
ARCHITECT
DEMO
RESTROOMS
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STRUCTURAL
WINDOWS
GATE & BLOCKWAJ.J...
ROOF FAÇADE & MEiAL REPAIR
CONCR~ASHPALTPATCH
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PLUS 10% CONilNGENY
11.500.00
125.500.00
GRAND TOTAL:
I S 126.500.00!
Budget at 1430 N. ?oinset!!a assumes:
. No fire sprinkler
. Not complying with current parKing. other.
. No lighting.
. Asphalt of capacity to handle trucks
. Sewer & water in Gal- Trans lot budget.
Budget provided herein Is just a best guess based on anticipated improvements from :I1e City of
Santa Ana. ActUal costs could vary greatly.
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BUDGET
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CAL- TRANS LOT IMPROVEMENTS
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¡TYPE OF WORK TO BE DONE AMOUNT TOTAL I
CIVIL i:;\lG1NE=<JNG 15.000.00 15.000.00
ARCHl-æ:TS 5.000.00 20.000.00
BLOCK WALL - 347 F::ï X S55 19,085.00 39.085.00
GRADE 10,000.00 49.085.00
ASPHALT - 30000 SF X 1.5 45.000.00 94.085.00
CURB & GUTIcR -100 CF X S10 1,000.00 95.085.00
UGHTiNG 10 POLES $3.500 EA. 35,000.00 130.085.00
WROGHT IRON 10.000.00 140.085.00
STREEï:
1 - APPROACH 2.000.00 142.085.00
1 - CULVE.~TS 2,...=00.00 144.585.00
LANDSCAPE:
LUMP SUM 10.000.00 154.585.00
CERTlRCA TES & CITY CONNECTION rcE:
SEWER 10.000.00 164.585.00
WATER 3.soo.00 168.085.00
TOTAL 168.085.00
PLUS 10% CONTiNGENCY S 16.808.00 S 184.893.00
GRAND TOTAL I S 184,893.00 I
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3uc:get provided herein is just a best guess based on anticipated improvements from the City ot
Sanra Ana. Ac:ual costS could vary greatly.
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GE Capital
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A unit 01- fled"" c.,.taIlÀtpO<3I>On
2«X1l:mlGotelloA"""",-s.;œ81111.- CA928D5
714 'S6-9>1,~~ ra.. 7H ..,jI;..9413
~"A'f}er:aD.a/.r:om
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April., 2000
Shubin ServICeS. Ine.
AUn: Dein ,Shubin
18e1 E, ~alm Sl '
santa Ani, CA. 92701
Re: $1 000 000 SBA Loan
Dear Mr. Shubin:
GE capital Small BusIness Finance Corporation ("GE Capitalì is pleased to prasent to you the below-
d8lCl1bed Loan PrOposal (the "Proposal"). Bear In mind that thIS Proposal is for discussion purposes
only. This ~roposalls as follows:
1
Borrowers: The Borrower shall be Shubin Services. Inc.
2. GU8l'8ntoc(s}: Don Snubin
3
Lo8Ì1 Princioal Amount; $1,027,438
4, Loan Term: FIVe (5) years
5 ,Interest Rate: The interest rate will adjust on a monthly basis at 1.85% above the Wall
,$tnIet' Journal's Published Prime Rate.
8 Pavments: The loan shall be repaid in monthly payments of principal and interest. Based
on the above described interest rate, the initial monthly payment shall be ~ The
payments will be applied to accrued interest and any n=maining amount 10 principal. This
monthly payment may fluctuate up or down, during the loan tenn, with fluctustions in the
prime rate,
7. Collateral: Borrower shall grant GE Capital a first priority security interest in the following:
a. '2nd mortgage on commercial property Jocated at 1661 Eo Palm St, Santa Ana, CA
92701
Þ. General UCC-1 filing against assets of snuÞln S8IVIces, Ine. & Federal Disposal
S8IVIces.
a Use of Loan Proceeds: It is anticipated that the proceeds of the loan will be disbursed as
follows:
a. Apprcxtmately $1,000,000 tor tne r&qulred tenant impltlVement and the acquisition of
carts and bins 8S specified in contnlCt for the City of Tustin Project.
9 CaDitallniedion: It is anticipated that Don Snubin will provide $0 toward working capital for
the operating business. The sourœ of this capital injection must be identified In your
application and must be injected prior to GE Capital's funding.
10 Waiv8fS; The terms of this Proposal may only be altered in writing tJy an authorized
representative of GE Capital.
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11. Insul'lllnce: All insurance (tjUe, fire and II1eft, flood, extended coverage and liaÞilil:y and life)
Is the responsibility of Borrower. The Borrower will be responsible for maintaining in force
property Insurance with companies and in amounts and coverages satisfactOly with GE
Capital.
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12. S8A ADDroval: GE Capital contemplated approval of this transaction will be ~ to and
contingent upon the credit approval of the U.S. Small Business Admlnlslnltlon.
13- ExDiration: This Proposal shall expire on April 15. 2000, if GE Capital has not received your
acœptance hereof by such date.
14. Transadion Cost: Borrower will be responsible for all closing and transaction costs.
15. Good Faith Deoosit: $10,000 Refundable minus actual GE co5ls, if City of Tustin contrad
is not exearted.
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16. AcœDtance: By signing below you acknowledge the terms and conditions of this Proposat,
Upon receipt of the executed Proposal Letter and accompanying Good Faith Deposit at the
addresS stated above, GE capital shall commence its investment ap Jf1Mll process
inCluding a business, credit, legal and environmental investigation. If investment approval
is ottained, the Good Faith Deposit will be applied to the periodic instaUrnents (except for a
documentation charge of $1.500. Such documentation chmye may be recluceclin the event
that GE Capital utilizes outside legal counsel to document the loan). If Investment approval
is not obtained, the Good Faith Deposit will be promptly refunded (less the cost of C1IdIt
verification and Investigation and any out of pocket expenses Incurred such as appraisal
fees, legal fees, etc.). In the event that GE Capital approves the loan substantlaUy upon the
tenns of this Proposal (or such other terms to which GE Capital may hereinafter agl'B8) and
the loan does not close within 90 days from such approval date then the Good Faith Deposit
shall be deemed earned by GE capital. GE Capital acceptance of the Good Faith Deposit
shall am in any way constitute a commitment by GE capital to provide the loan d8SClibecl in
this Proposal.
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EXHIBIT F
TUSTIN CDD REVIEW OF FEDERAL DISPOSAL SUBMITTAL
EXHIBIT G
LETTER TO FEDERAL DISPOSAL
FEDERAL DISPOSAL BID
Proposal for:
INTEGRATED SOLID WASTE
MANAGEMENT SERVICES
CITY OF TUSTIN
JANUARY 18,2000
Submitted by:
FEDERAL DISPOSAL SERVICE
Donald Shubin, President
(714) 542-7701 Ph
(714) 542-8435 Fax
FEDERAL
DISPOSAL
SERVICE
January 18,2000
CITY CLERK
CITY OF TUSTIN
300 Centennial Way
Tustin, California 92780
RE: BID FOR INTEGRATED SOLID WASTE MANAGEMENT SERVICES
Federal Disposal Servic.e (FDS) is thankful for the opportunity to compete for the City of Tustin
Integrated Solid Waste Management Service Franchise Agreement.
As the City is aware, Federal Disposal Service has been a waste hauler in Tustin since 1987.
From 1987 to this past year Federal Disposal Service perfonned Solid Waste Collection,
Disposal, and Recycling Services at the Marine Corps Air Station, Tustin.
There have been major changes in the Orange County economic structure since 1987. For
example, the County went through bankruptcy, and the Tustin Marine Corps Air Station closed,
Considerable changes have occurred and are still occurring in the Waste Industry. .
Reacting positively to the marketplace, Federal Disposal Service has continued to profitably
grow. We are in another record sales year with a 40% increase over the last two years. We
occupy a newlYJ"enovated, fully pennitted, l.8-acre Operations and Administrative Facility
located at 1st Street & the 5 Freeway. We now operate a fleet of over 18 collection vehicles, Our
strength is founded on a fully developed management team, customer loyalty, honesty, and hard
work.
We look forward to the Bid process and the opportunity to compete for the City of Tustin
Integrated Solid Waste Management Service Franchise.
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Doo.d ~
President
P.O. Box 118' Santa Æna, CA 92702
(800) 635-2054' (714) 542-7701 . (714) 542-8435 FAX
Item
4)
TABLE OF CONTENTS
Paae #
1 )
General Requirements
a. Anti-Collusion Affidavit & Notary Certificate. . . . . . . . . . . .
b. Responsible Bidder Requirements Form
(Attachment6)..........................
c. Copy of Cart Manufacturers Warranty. . . . . . . . . . . . . .
d. Manufacturer's Certification of Cart Conformance
(Attachment7)..........................
e. Executed Signature Page From Franchise Agreement
10
11
4
5-8
9
2)
3)
Proposed Rates (Attachment) . . . . . . . . . . . . . . .
12
Supporting Cost & Operating Data Worksheets (Attachment) . . .
13
BidderOverview............................14
a.Businessstructure.........................15
b. Description of bidder's experience. . . . . . . . . . . . . . . . . 15-18
c. Information regarding past and pending litigation. . . . . . . .. 19
d. Keypersonnel......................... .20-23
e. Financial information (financial statements and financing plan) 24-25
5)
Proposed Services........................... 26
a.Refusecoliection........................27-30
b.Recyclablescoliection .....................30-32
c.Yardwastecoliection................... ...32-33
d.Specialservices......................... 33
e. Disposal, transfer and processing facilities. . . . . . . . . .. 33-34
f. Operating facilities........................ 34
g. Implementation plan. . . . . . . . . . . . . . . . 34-36
h. Customer service and billing. . . . . . . . . . . . . . . . .. 36-37
i. Hazardous waste management component. . . . . . . . . . . . . 37
j.Publiceducation........ ......... ..37
6)
Other. . . . . . . . . . . . . . . . . . . . . . . .
.. . 38
3
CITY OF TUSTIN
FEDERAL DISPOSAL SERVICE
INTEGRATED SOLID WASTE
MANAGEMENT SERVICES
PROPOSAL
a) Anti-Collusion Affidavit and Notary Certification
and Acknowledgement of Amendment 1 & 2
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A ITA CHMENT 5
ANTI-COLLUSION AFFIDAVIT AND NOTARY'S CERTIFICATION
Bidder as a part of this bid submitSthe following affidavit
The undeISigned c1eponent, of lawful age, being duly sworn. upon his oath deposes and says:
That he has lawful authority to execute the within and foregoing bid; that he has executed the
same by subsaibing his name hereto under oath for and on behalf of said bidder; that bidder
has not directly or indirectly entered into any agreement, express or implied, with any bidder
or bidders, having for its object the controlling of the price or amount of such bid or bids, the
limiting of the bids or bidders, the parceling or farming out to any bidder or bidders or other
persons of any part of the contract or any part of the subject matter of the bid or bids or of
the profits thereof, and that he has not and will' not divulge the sealed bid to any person
whomsoever, except those having a partnership or otherfinancia1 interest with him in said bid
or bids, until after the said sealed bid or bids are opened.
Deponent further states that the bidder has not been a party to any collusion among bidders
in restraint of freedom of competition; by agreement to make a bid at a fixed price or to
refrain from submitting a bid; or with any City official or employee as to quantity, quality, or
price in the prospective contract; or in any discussions between bidders and any City official
concerning exchange of money or other things of value for special consideration in the letting
of a contract; that the bidder has not paid, given or donated or agreed to pay, give or donate
to any official, officer or employee of the City directly or indirectly, in the procuring of the
award of contract pmsuant to this bid. ~ --"-
~;;:~~of_œ'" ~~ 2p~.t-
BY Oona.IJ S hLt~'~()
:tJtTrrLF. frV!.Lden \
~:¡;¡¡;roë;-~~ w~¿-c-
/. Notary Public
My Commission expires: JUL 4 200 - JAMES W. TAYLOR
1ft COMMISSION 111417«
w NOTARY PU8UC.CAlIfORNIA rn
ORANGE COUNTY' -
My Comm. llpit" July 9,2001"
Failure to complete and submit this form will deem the proposer's bid non-responsive.
December 7, 1999
5-1
ClydTIJSIß
~an-O5-00 04:26P City oT Tustin PW Deptm
P.O4
Q6: In Section 4.5.3.1.1 of the Franchise Agreement, the document refers to
container sizes "60 to 70 gallons". Would the City consider revising that
section to increase the size range to 70 gallons?
A6: In &..'Ction 4.5.3.1.1 of the Franchise Agreement, second bullet, replace "60 to 67
gallons" with "60 to 70 gallons" .
This Addendum is to be incorporated in and become part of the Bid, This
Addendum No.1 must be acknowledged bv sitmine: and dating in the siltltature
and date blocks below. and should be included with the Bid by attaching it to the
returned si~ture page of the Franchise Aereement.
cT~-p.~
Director of Public Works
14~ð
~
Acknowledged:
pl:lf: ~re
r ~/l~ðO
r#)
Date
Company
Addendum "0, 1
Page 3
1/5/00
Jan-14-00 12:44P City OT Tustin PW Deptm
P.O2
ADDENDUM NO.2
TO THE REQUEST FOR BIDS FOR
INTEGRATED SOLID WASTE MANAGEMENT SERVICES
City of Tustin
300 Centennial Way
Tustin. California, 92780
Bids Due Januarv 18. 2000
The Request for Bids (RFB) Documents shall be revised by additions to, deletions from and
changes as stated in this addendum; insofar as original Documents are in variance with this
Addendum, this Addendum shall govern. The following changes are hereby incorporated.
The diskette containing the Excel file of Attachment 3 that was made available to the
bidders at the Pre-Bid meeting on December 16, 1999 requires two changes that the bidder
should make before submitting its proposal:
~ On Rows 1 and 2 in the "Monthly Billings" column, the Bidder should enter a formula
to calculate monthly billings by multiplying the "Proposed Monthly Rate" by the
"Estimated Number of Service Units," The formula in the column for" Annual Billings"
on Rows 1 and 2 should be revised to be "Monthly Billings" multiplied by 12.
v"'b) In the ~olloff Box Billings.5ection, Row 17, the "Units Per Year" should be revised to
13,407 to correspond to the correct number of tons shown in Attachment 3 in the RFP,
The diskette contained an incorrect value of 10,508 tons,
This Addendum is to be incorporated in and become part of the Bid, This Addendum No.
2 must be acknow]ed~ed bv signing and dating in the signature and date blocks below, and
should be included with the Bid by attaching it to the returned signature page of the
Franchise Agreement.
C / -C). (þg-
Tim Serlet
Director of Public Works
Itt
~
M~~
Pr&'þoser's Signature
/-1'1-- ()O
rft?
Date
Company
Addendum No, 2
Page 1
1/14/00
CITY OF TUSTIN
FEDERAL DISPOSAL SERVICE
INTEGRATED SOLID WASTE
MANAGEMENT SERVICES
PROPOSAL
I b) Responsible Bidder Requirements Form (attach. 6)
5
ATI'ACHMENT 6
RESPONSIBLE BIDDER INFORMA nON
In order to be eligible to bid for the <.:ity's Integrated Solid Waste Management Services
Agreement, potential bidders must provide all of the information described below. Please
check the appropriate response to each item below, and attach documentation to this form
supporting each response (e.g. names of agencies, population, dates of service, description of
services provided, name of contact person at the agency and telephone number), and where
the answer is "No", please provide detailed information about your experience providing the
service.
J
Reqøirement
1. The bidder has previously provided exclusive residential refuse
collection services to at least one p11blic agency with a service area
population of at least 30,000 in the past ten years.
2. The bidder has previously provided exclusive commeråal refuse
collection services to at least one p11blic agency with a service area
population of at least 30,000 in the past ten years.
3. The bidder has previously provided fully automated residential
refuse collection services (either refuse, recycling or yardwaste) to
at least one city or county in the past ten years.
4. The bidder has previously provided yardwaste collection services
to at least one city or county in the past ten years.
5. The bidder has previously provided recycling collection services to
at least one city or county in the past ten years.
6. The bidder has previously initiated new exclusive residential and
commercial service in at least city or county as part of a transition
from a previous service provider,
7. The annual revenues from the Tustin Contract (estimated at
approximately $5 million per year at CI11TeI'It rates) will be less
than 33% of the bidder's existing annual revenue as reported for
its most recently completed fiscal year.
8. I have attached all supporting data required to explain the
responses in this fonn.
~ N2
X
X
X
X
j
1-
+-
--Þ-
Failure to complete and submit this form will deem the proposer's bid non-responsive.
December 7, 1999
6-1
City of T usIir
Question
I.
2.
3.
4.
Answer
No
No
Yes
No
RESPONSES TO ATTACHMENT 6
Explanation of Experience
FDS has perfonned exclusive residential refuse
collection service concurrently at:
Location: Population:
Marine Corps Air Station, El Taro & Tustin 10-15,000
Vandenburg Air Force Base 12,307
Twenty-nine Palms Marine Corps Air 8-10,000
Ground Combat Center
FDS has perfonned exclusive commercial refuse
collection services concurrently at:
s Air Station El Toro & Tustin
Air Force Base
FDS initiated fully automated residential refuse collection
service at Vandenburg Air Force Base in 1986. In 1989 we
augmented the automated refuse collection with automated
recycling collection. Again, in 1992, we added automated Green
Waste collection. Contact and other infonnation for Vandenburg
Air Force Base is included in Section 4.
FDS has the following green waste collection, processing and
marketing experience.
a) FDS has teamed with Murai Fanns to develop and pennit a 240
ton per day compost facility. Murai operates a 600 acre
agriculture fann on the Irvine Ranch. Murai Fanns and the
pennitted compost facility provided green waste markets to
FDS and other private and public sources. FDS applied for and
obtained a full compost facility pennit, including local, state,
and Water Quality Board Approval.
b) FDS perfonns green waste collection and recycling to private
landscape maintenance finns utilizing standard roll-off
equipment. FDS (previously) operated a green waste
collection and processing service which collected and mulched
material, directly from a project, in the same step.
6
5.
6.
No
FDS has recycling collection and marketing experience as listed
herein. We have not provided recycling service directly to a City
or County Department or Agency. Recycling and marketing
experience, similar to the City of Tustin's scope-of-work, occurred
at Vandenburg AFB.
Yes
This company's equivalent waste management experience has
been on Department of Defense (DOD) Military Installations. A
DOD facility is a small autonomous community that provides its
own refuse, police and fire service (like a small city). FDS has
initiated new exclusive residential and commercial service as part
of a transition in service providers on multiple DOD facilities in
the Southwest United States. FDS's experience at transition in
service providers comparable to the City of Tustin scope is:
a) Vandenburg AFB, 1997
b) Yuma Proving Grounds (Army), 1995
c) MCAS El Toro, 1987
\\~,¡l ~(:þ ~
vlY
0.,
FDS has performed most of its Service Initiation operations in out-
of-town locations. Performing a Service Initiation from our Santa
Ana Operations Facility would provide a welcome opportunity due
to:
a) Availability of all key, managerial personnel,
b) Ample back up drivers,
c) Pre-established vendors, and
d) Use ofFDS' own shop and office facilities
FDS has very current Service Initiation experience in the private
sector. In 1999 FDS initiated new End Dump service to the Site
Clearing and Demolition Industry equivalent to 7 trucks or $ 1.9
million per year in revenue.
Additional important reasons why FDS can guarantee a problem-
free transition are:
a. The availability of ample time. Beyond a diligent,
competent management team, adequate time between
award and service commencement is the most important
commodity in a Service Initiation exercise. The City has
allotted adequate time to allow a new Franchisee to set up
billing records and procedures and overcome potential
equipment delivery delays.
b. Another benefit FDS has in performing the transition in
service providers is our availability of quality, presently
7
emploved. drivers. FDS will not give the City new-driver-
problems. The quality and reliability of new hires will not,
on average, be adequate to guarantee a smooth transition
(in our opinion). FDS has available (10) Class A or B
licensed drivers, each with 2-15 years experience driving
Automated, Frontloader, and Roll-Off collection vehicles.
These experienced drivers are available to provide a more
stable customer service platform.
7.
The approximate annual revenue from the City of TustÎn Franchise
is 105% ofFDS' annual revenue as reported for its most recently
completed fiscal year. As measured in fleet size, the City of Tustin
Franchise would amount to a 66% increase.
No
The current Operations Facility ofFDS is expandable. FDS
occupies only 'I. of a 47,000 square foot building with the balance
subleased on short-term agreements.
FDS's current management organization would support a business
volume that includes the City of Tustin Franchise. (Company
Organization Chart, see below.)
8.
Supporting information or data is provided herein or Section 4.
Yes
8
CITY OF TUSTIN
FEDERAL DISPOSAL SERVICE
INTEGRATED SOLID WASTE
MANAGEMENT SERVICES
PROPOSAL
Ie) Copy of Cart Manufacturers Warranty
9
2Ø98757137 TOTER INCORPORATED
T!!!H:c'
835 PØ2
JAN 12 '00 16:20
. SAMPLE - Sublect to final aDDroval bv the City .
ORIGINAL PURCHASER:
Date of Purchase:
MANUFACTURER'S DIRECT TEN YEAR WARRANTY
Tote'- Container
TOTER INCORPORATED (Toter) warrants its wheeled container to the original
purchaser listed above to be free of defects in material and wor1<manship under normal
use and service for a period of ten years from the above date. This warranty equally
covers Toter containers molded of either virgin resin or recycled content plastic
materials.
This warranty is expressly limited to any product parts which are proven to Toter's
satisfaction to be defective under this warranty, Parts determined to be defective by
Toter shall be repaired or replaœd at Toter's optlon- Repaired or replaced parts are
warranted for the ~Iance of the original warranty period of the original part. Repair or
replacement is the sale remedy available under this warranty.
Specifically excluded from this warranty are labor and installation and damage due to
negligent or abusive use or normal wear and tear, including, but not limited to, those
items listed on Schedule A (on back hereof). Negligent, abusive. or specifically
excluded use of containers voids this warranty thereafter. In no event shall Toter be
liable for incidental or consequential damages, for loss of product or time, or for any
delay in performance under this warranty.
TOTER MAKES NO OTHER WARRANTY, EXPRESSED OR IMPLIED, INCLUDING
WARRANTY OF MERCHANTABilITY.
TOTER-INCORPORATED
Officer of the Corporation
Title:
Date:
Hdql'l: PO BoJc 5338. _18 Ne28887-ð338 .841_... RO8d. SUo_laNe 28e77.2983.704-872~171.FIX704-878-0734
~ ON_: 1980 I_WIlY. PO BoJc 7. SangerCA 93657-0007.559-87507130. F..S5N7507137
,-..--'@)
2098757137 TOTER INCORPORATED
835 P03
JAN 12 '00 16:21
SCHEDULE A
Following are descriptions of several situations where the warranty doe8 not apply.
Exclusion Is not limited to these situations.
EXAMPLES OF NORMAL WEAR AND TEAR:
. Scratches: Normal use may cause scratches to a softer material such as plastics,
. Dirt Includes aCC\Jmulation of dirt or any other substance.
. Normal deterioration during service.
. Normal discoloration due to atmospheric exposure.
EXAMPLES OF NEGLIGENT OR ABUSIVE USE:
. Cuts or scores from any source.
. Extraordinary impacts such as being hit by a vehicle.
. Bums, scorches, melting. My damage from excessive heat.
. Improper handling. Includes dropping stacks off delivery trucks, improper stacking,
forcing cart through narrow openings. allowing packer mechanism to hit cart during
dumping cycle, abrasion from excessive dragging, or cracks caused by improper
handling or dumping.
. Damage from automatacl grasper or seml-automated lifter, Includes any scratches,
creases. a'8cks or breaks from a malaä UstecI, incorrectly operated, or improper
automated grasper or semi-automated lifter. Includes any semi-automated lift speed
faster than two seconds for either the lift cycle or the dawn cycle,
. Chemicals. Being exposed to solvents, petrochemicals, paints, acids, or other
chemical substance which damages plastic or metal parts.
. Improper use. Being used other than for storage, transport, and dumping of normal
household residential solid wastes and recyclables, including such uses as:
Construction, industrial, institutional and use for landscaping, lìquid
storageltr8n8port, bulk solids storageItransport, recreation, and food service,
. Failure to follow instnJctions imprinted on cart parts.
CITY OF TUSTIN
FEDERAL DISPOSAL SERVICE
INTEGRATED SOLID WASTE
MANAGEMENT SERVICES
PROPOSAL
I d) Manufacturer's Certificate of Cart Conformance
10
. rRnM :'.
20'38757137 TOTER INCORPORATED
I'I~ il'1~ Nil '
816 P04
!'>~",1/1""'1l'!Anll',,:
JAN 11 '00 16:57
Followillg are the headings for the specific design specifiations and perío=
requiremer\I' for the automated carts to be obtained and used in the perfonnanœ of the
, Franclúse Agreemefll lhview the fIWIchise Agreement sedíon refer«nced (Attachment 9) and
cl1eck the space for NYesN if the carts conform to the design speci.lialion or performance
requirc=t or "No" if th~ car!:li do not conform to the specification or req11Îrl!mel\t.
'art D&sion Specifications :ra
1. Capacity - Section 4.53.11 ---L-
2. Cart Handles - Section 4.5,3.1.2 X
3. Cart tiel - Section 4.5.3.13 X
4. Foot-Hold - Section 4.5.3.1.4 X
5. Cart COIOIS - Section 4.s.3.1~r; X
6, Wheel Design and Axles Assembly - 4.5.3.1.6 X
7. Identification Markings - 4.5.3.1.7 X. -
8. Additional Parts - 4.5.3,1.8 X '----
9. Reple,cement Parts - 4.5.3.1.9 X --
Cart Performartce 'R."~!1¡r"mt:J1ts
'1. Minhnum Service We - 4.5.3.2.1
2. Cart Load Capacity - 4.5.3.2.2
3. Cart Durability - 4,5,3.2.3
4. CheIIÚcal Resistant - 4.5.3.2.4
5. . Stability and Maneuverability - 45.3.25
6. lid Performance - 4.5.3.2.6
7. Reparability - 4.5.3.2..7
ATTACHMENT 7
MANUfACTUIlER'S_ÇElI.T1FICATION Of CAnT CONFORMANCE
x
X
--L-
X
x
X .
X
N!l
--
I have read the sections of th. Franchise Agreemet't referred to on the previous page and chedced
whether or not the carts included in the Bid for the City of Tustin J,ntegrami Solid Waste
M.magemC\t Services confonn to the design specifiations anel cart performance requirements
contained therein.
~,?-
TOTER INCORPORATED
Signature of Manuf<adurer's Representative
Name of Cart Mæuúacturer
SENIOR VICE PRESIDENT
Title
JANUARY 10, 2000
Date
.
\
FAilure to complete and submit this form will deem the proposer's bid non-mponsïve.
Det:embet 7. 1999
7-1
ClyofTI/SIJII
2Ø98757137 TOTER INcœPORATED
816 PØ5
JAN 11 '00 16:57
TIR
TOTER* EVR'nI AUTOMATED CONTAINERS
PRODUCT SPECIFICATIONS
MA TEIiIAIIDDnr.ess:
Rotationally molded, first quality LMDPE 88 produced by a primary manufacturer such as
Exxon LL 8400 or NOVA Chemicals TI..Q338.A. Certified to contain ultraviolet stabilization
providlld by the equivalent of 0.5% of UV stabilization compound end 1.0% color hot-melt
compounded into the material.
CART LID:
LId is attached securely to the body by two molded polyethylene hinges permanently
attached to lid. Rotates 270- with no interference. Lid is domed to facilitate rurK)ff of
water. Ud fits closely on top rim of carl
UD MARKINGS:
Imprinted with "Instructions" and "Indications and ContrIIIindications" in English, French,
and Spain ish.
CART BODY:
Handle i. an integrally molded part of the cart body. External handle diameter is 1.25".
O~i8C8 handle features comfortable and convenient gripping areas, Handle is 1 00%
part of cart body, allowing cart to be used without lid if necessary, The handle is molded
with no opIInlngs into the cart body, Handle Includes center support molded in cart body.
Top rim hall molded flange for extra rigidity and close lid fit. Axle slides through molded
pllStlc journals In the cart bottom. Container bottom features multiple bottom chimes (wear
stripa) for maximum abrasion protection
Axle is 518" diameter zinc chromate plated solid high strength steel fully supported by cart
body. No bolts or rivets are used for axle mounting.
Wheels Ire one piece 10" x 1,75" (nominal), Sunburst wheels with knobby tread, extra
high molecular weight polyethylene. Minimum RMA load rating of 200 Ibs. per wheel.
Wheels are retained with galvanized steel drive on pal nuts.
BODY MARKINGS:
Sequentlalseria! numbers permanently hot stamped in white, 1%" high on front of cart
body. Manufacturers namelcode is molded into the side.
HdqnI: PO _11138 . ..... HC 281!87-63311. 841 --- ft8 . 8I8IIIiIII HC 'JIJ//ST7 . 71)4.172.8171 . F. ~
W8I8rn DtIIIIon: 18801ndu1tr111 w.,. PO 1lea7. 8IrpCAlI3II57o1X1117. ~7130. ,.sm-7137
2Ø9875'7137 TOTER INCCI<PORATED
816 PØ6
JAN 11 '00 16:58
T~ EVR'IM Automated Containers
Product Specifications
Page 2
gm,gß:
Ultnlviolet stabilized, non-fading green, black, gray, and brown.
DIMENSIONS:
Model 57596 -
Model 57564 -
Model 57532 -
~
29.25"
27.50"
19,25"
J.!Dg!b
34.50"
30.00"
24.25"
ttIiab!
46.75"
40.00"
38.50"
CAPACITY:
Model 57596 - 96.27 US Gallons
Model 57564-63.75 US Gallons
Model 57532 - 31.61 US Gallons
LOAD RATING:
Model 57596 - 335 pounds
Model 57565 - 224 pounds
Model 57532 - 112 pounds
All Toter load rating. conform with ANSI Standard Z245,30, which limits the maximum load
rating to 3.5 pounds per gallon.
WARRANTY:
Container body, lid, wheels, axle, and all other parts are covered by a ten (10) year
W8/T8nty ,
CITY OF TUSTIN
FEDERAL DISPOSAL SERVICE
INTEGRATED SOLID WASTE
MANAGEMENT SERVICES
PROPOSAL
Ie) Executed Signature Page - Franchise Agreement I
Shubin Services Inc" d,b.a, Federal Disposal Service, accepts all
terms and conditions of the Franchise Agreement.
!I
13.6
Severability
If any non-material provision of this Agreement is for any reason deemed to be invalid
and unenforceable, the invalidi.ty or unenforceability of such provision shall not affect
any of the remaining provisions of this Agreement which shall be enforced as if such
invalid or unenforceable provision had not been contained herein.
13.7
Exhibits
Each of the Exhibits identified in this Agreement is attached hereto and incorporated
herein and made a part hereof by this reference.
13.8
Non-Waiver Provision
Failure of either party to exercise any of the remedies set forth herein within the time
periods provided for shall not constitute a waiver of any rights of that party with regard
to that failure to perform or subsequent failures to performing whether determined to
be a breach, excused performance or unexcused defaults by the other party.
IN WTINESS WHEREOF, the City and the Company have executed this Agreement as of the
day and year first above written.
CITY OF TUSTIN
("City")
ATTEST:
CITY CLERK
By
MAYOR, CITY OF TUSTIN
APPROVED AS TO FORM:
("COMPANY)
By:
Name:
City Attorney
Title:
Service
By:
Dfl:ørtH7.11lB
-97-
(]ydTlá1
CITY OF TUSTIN
INTEGRATED SOLID WASTE
MANAGEMENT SERVICES
PROPOSAL
FEDERAL DISPOSAL SERVICE
12) PROPOSED RATES (attachment 3)
12
Attachment 3
Proposed Rates
Estimated
Row Service Proposed ExbtiDg Moothly Annoal BUlings
Moothly Rate Service Voits Billlogs
.
1 Automated Cart $ 12,17 8,773 $106,767,00 $ 1,281,204
2 Manual Can $ 7.34 737 $ 5,410,00 64,920
3 Total CartiCan Billlo-';;- $ 112,177 $ 1,346,124
R~ld~t;al Molli-Famllv and Comm'~;al Ca"'IManoal Cao Ral~
Comm,~lal and Mulli-Famllv BIn Rat..
Row
Cooloiner
Size
2 Cubic Yards
3 Cubic Yards
4 Cubic Yards
6
175,45
201.96
228.48
Row Conloin" Picko rWeek Total
She I 2 3 4 5 6
7 2 Cubic Yards 84 20 9 1 2 116
8 3 Cubic Yards 253 562 340 125 132 62 1,474
9 4 Cubic Yards 30 80 97 23 49 46 325
10 Total 367 662 446 148 182 110 1,915
(Comm,~lal and Multi-Family BIn Distrl"olion Matrix - Nom"r 01 BIns
Sou.-c" W'""" Management, I"", The c.ty does Dot ,",sume any "spo",tb""" fm the a",u,"y of the "ported mfonnanon
Row Container PickuM ~r Week Total
Size I 2 3 4 5 6
11 2 Cubic Yards $ 2,985 $ 1,270 $ 823 $ $ 147 $ 351 $ 5,576
12 3 Cubic Yards 10,107 40,659 35,617 17,145 22,382 12,522 138.432
13 4 Cubic Yards 1,331 6,495 11,447 3,561 9,391 10,510 42735
14 Total Monthlv Billlo.. $ 14,423 $ 48,424 $ 47,887 $ 20,706 $ 31,920 $ 23,383 $ 186,743
15 Total Annoal Billloa, $ 173076 $ 581,088 $ 574,644 $ 248,472 $ 383,040 $ 280,596 $ 2,240,916
(Commmlal and Mnltl-Famllv BIn BilllnV'
Row Description BillingVoit Voits per Proposed Estimated
Year Rate Annoal Billlo..
16 Pun Cluu'ge # of Pulls 3,002 $ 87,23 $ 261,864
17 DtsposallProcessiDg Cluu'ge # ofTo", 13,407 $ 28,00 $ 375,396
18 Total RoD-Off Box Billlo" $ 637,260
Roil-Off Box BIllIn~s
Somma.. of ","o¡"t,d Annoal BIllIn"
19
20
21
22
Residential, Multl-Family, Conon"eial Cart/Manual Can Billings
Comme.-cial and Multi,Family Bin Se",lce Billings
Roll-Off Box Billin s
Total Proected ADDual Billin s
S""lal Servie~
Row DescriotJoos Rate
23 Tempo"'y Bin Se",iees - p" Pull, plus $5 pe' day ovet 7 days $ 50,00
24 Locking Bin - CoSt per bin pe' mooth $ 5,00
25 Bin Cleaniog (in excess of one biD cleaning per year) - Each $ 35,00
26 Additional Bolky W,",te Pickup (in excess of 2 per year) - Each $ 20,00
27 Additional S~ial plckun for Automated Cart Customers (In excess of 2 oer vear! - Each $ 5,00
. These unit estimates will be nse<l for purposes of ..!culatiog rate "veoue and
detenniniug the propos,,'s ov"all cost, It ,",sum.. that all single family, duplex, and
triplex units will receive automated cart se",ice,
Failure to complete and submit !IUs lorm will deem Ibe proposer's bId ooo-....poosi.e,
Decembrt 7, 1999
3-1
City of Tustin
CITY OF TUSTIN
FEDERAL DISPOSAL SERVICE
INTEGRATED SOLID WASTE
MANAGEMENT SERVICES
PROPOSAL
3) SUPPORTING COST AND OPERATING DATA
(attachment 4)
1, Operating cost of the multi-function Swing Truck is allocated to
SF & MF bulky Item/Other category. The Swing Truck performs
collections at Roll-off and Single-Family in addition to other
detailed services. Tonnage estimates for the Swing Truck are
included in the appropriate category,
13
Attachment 4
Supporting Costs and Operating Data
Projected Revenne Requirement for the First Twelve Months of the Franchise Agreement
Automated Manual Bin Service SF &MF TOTAL
Row Can RoU-off Box Bulky Item ANNUAL
Refuse Recycling Yard Waste Refuse Refuse Recycling Service Pickup and REVENUE
Other
1 Truck Operating Cnsts (a) .,L."J~~"~()(),,, $ ~,~~..~76 .t.J~?,I6() J,..}Q,.9..I!4.. J...,..J,~I",.9..~~, J...I~Q,~I~,. ",L,PQ,.9..J§. ..~...JI9,2~, "L!",~n~~~.
2 Processing Costs ,...,.........,.,..,....,. ,..'..""""'" ..,.."".,Æ",¥..~, .",..",..",~~",!JI}I, ,..,..,..",..,~!,~Æ..2 ..... ....1Q~,~2:I .,.....!~~,1~ ......,...... .......~I.9..,J~Q.
3 Disposal Costs ,...........~~~,4:()() ..,........,......,.,.,.,.,., .,.,.,..,.,.. ...............,...........,. .",.~,1~,.9..1..2 .. .....,.................. ..2~!,,~~~ ,.,. ..4,Q~Q "...9..~~,~.~
4 Container Costs ...,.,..,.}~,?~§, ..,.}~,?J§.. ",..,....,..,..?,~"2~,~., , .....,.. ..,............ ",."..".."I,~~Æ..2.,... ,....2~Æ:4.., ,.,......",.~,..2()() ......,................., ..:4..~5,,!JIJ4..,
5 General, Administrative and Profit ,.,.. ",,?~,,~6.8, ...."".""..}.M8.~" ..}§,61!4... ",...,.9..,!,~~. ,.,.J~J,QI!4... .....,.9..~,~~~ ,..... ..}.~,§~:4... "",4,5",8,~,~" "",.:4..~,~~
6 Franchise Fee "".""".,!~,!..2..Q, ..,..., "..:4.."§~,2,,, ""..".,.,?",~!!1,." ..,."!,~8"I,, ..,....~!,??~. "..,.""..",ßÆ,~., ".,.."...1!,.3,~", ,....~,.39:4.. ..sQ,Q~?
7 Other 141,481 141,481
8 TOTAL REVENUE REOUIREMENT $ 618,144 $ 236,148 $ 370,304 $ 65,334 $ 1,772,082 $ 409,663 $ 579,576 $ 173,050 $ 4,224,300
9 Tous CoUected 10,200 2,772 5,556 516 28,200 14,400 13,404 183 75,231
10 Revenue per Ton CoUected $ 61 $ 85,19 $ 66,65 $ 126.62 $ 62,84 $ 28.45 $ 43,24 N/A $ 56.15
11 Tous Diverted 0 2356 5556 129 4692 14,400 4848 N/A $ 31,981
(a) Includes DriverlHelperlSupervisor Wages and Benefits, Vehicle Depreciation and Maintenance, Vehicle Insurance and Other Route Costs,
12
13
14
15
16
17,00
18
19,0
20
21
22,00
December 7, 1999
Row
Route Type
Number of Routes per Day:
Automated Can Routes
. Refuse Routes
. Recycling Routes
. Yard Waste Routes
Manual Can Refuse Routes
Bin Routes
. Refuse
, Recycling
Roll.OffBox
SF & MF Bulky Item Pickup and Other
23
Total Routes
. For Example, 8, 9 or 10 hours per day,
Number of Routes
Mon
Tues
Routes Per Da
Tburs I Fri
13
Sat
Sun
Hours per
Route per
Day'
Wed
Q..2~....L.Q~.....J."",Q",~L.
Total
....L~~..,
.......,~,:()()....,
4,5 1 4.5 I 4,5 1 4.5 I 4,5
"::::~:::~::::~:~;~:::~ ::::::'~::::::::i~:::::~:i;~:::::
I~ 1~ 1~ I~ 1~
13
13
13
1.25
.....9...............,.,
.."....7"5..0,.,,..
74
11.0
"",....1,!".""....
}~.....,
12.00
13
Failure to complete and submit tlùs fonn will deem the proposer's bid non.respousive.
4.1
City of Tustin
CITY OF TUSTIN
FEDERAL DISPOSAL SERVICE
INTEGRATED SOLID WASTE
MANAGEMENT SERVICES
PROPOSAL
14) BIDDER OVERVIEW
14
Company Overview
a) Business Structure
Federal Disposal Service (FDS) is a d.b.a. of Shubin Services, Inc. (a California
Corporation). The date of incorporation was April, 1984. The stock of the Company
is wholly owned by its President, Donald B. Shubin. The Federal Tax ID Number is
77-0052359.
The mission of Federal Disposal Service is to provide, on a daily basis, reliable,
responsive refuse collection and recycling services, and to be ever aware that our
performance is measured on a customer-by-customer basis.
A brief statistical view of the company:
40
18
$4.6 mil.
b) Experience
The contract service record of Federal Disposal Service is without a blemish. Most
closely related contract performance history is included below. Favorable comments
from Performance Evaluations are summarized. Full Performance Evaluations are
attached.
I. DEPARTMENT OF THE NAVY
Marine Corps Air Station, El Toro and Tustin
Due To Base Closure, The Following P~C Applies;
O.I.C. Contracts, LA Area
Naval Weapons Station
800 Seal Beach Blvd. Bldg. 230
Seal Beach, CA 90740
Contact: Linda Linder (562)-626-6130
Continuous Customer From 1987 to 1999
Contract #N687ll-95-D-836l
Five-year Value: $4,263,815.
15
Type of Collection: System: Quantity TonIMn.
Commercial Refuse Collection 4-40 cubic yard bins 300 Bins 400
Commercial Recycling Collection 3 cy Co-mingle 25 Bins 25
Single-Family Refuse Collection Manual 2646 400
Single-Family Recycling 3 Curbside Basket 2646 220
Performance Evaluation Comments:
"The Contractor and Site ManagerlDispatcher always respond quickly to each
phone call, and accomplish Government requests in an outstanding manner. They
provide fast emergency response to verbal orders while delivery orders are in
process."
"The Contractor has always submitted all scheduled reports with the monthly
invoice. All invoices and reports have been correct and on time, submitted on the
first of the month or when requested. The performance of the Contractor has been
outstanding in turning reports in to this office on time."
Paul Sherwood
Installations Director
MCAS EL TaRO & TUSTIN, February 1998
"The Contractor is effective at resolving problems in an efficient manner and
conforming to contract requirements. The working relationship has been
outstanding, and I look forward to working with him in the future."
Michael Stover
Contract Specialist
MCAS EL TaRO & TUSTIN, August 1999
2. DEPARTMENT OF THE AIR FORCE
Vandenburg Air Force Base
Building 7015, Section D
Vandenburg AFB, CA 93437-5226
Contact: Betty A. Rosewaren (805)-605-8470
Customer From 1988 to 1995 and 1997 to 1999
Contract #F04684-97-D-0024
Five-year Value: $ 2,969,730
16
Type of Collection: Svstem: Quantitv TonIMn.
Commercial Refuse Collection 4-8 cy F/L Bins & 300 Bins 475
300-450 gal. Autom.
Commercial Recycling Collection 64-300 gal. Co- 200 Bins 65
mingle/Mixed PaDer
Single-Family Refuse, Recycling, 3-95 gallon 2400 700
and Green Waste automated
Performance Evaluation Comments:
"Federal Disposal Service has displayed exceptional customer service to
Vandenburg AFB during this period. Daily communications between our office
and the Contractor have provided for a quick response and resolution to any
problems or concerns that were brought up by base customers. Daily work
requests were always accomplished expediently and efficiently. Federal
Disposal's employees were always very knowledgeable and professional. Federal
Disposal Service has proven that they are truly exceptional in the Refuse
Collection Business."
William R Deem
Chief, Service Contracts Section
VANDENBURG AIR FORCE BASE, January 2000
3. DEPARTMENT OF THE NAVY
Marine Corps Air Ground Combat Center, Twenty-nine Palms
P. O. Box I 138Tl
MCAGCC Twenty-nine Palms, CA 92278-0170
Contact: Dorothy Brehm (760)-830-7417
Continuous customer from 1992 to present.
Current Contract #N68711-97-C- 7339, options end in 2002
Five-year Value: $992,892.
S stem Size:
Semi-automated
4. YUMA ARMY PROVING GROUNDS
Contracting Officer
Dept. Of The Army
Bldg. 2100 STEYP-CR-A
Yuma Proving Grounds
Yuma, Arizona 85365
17
Contact: Mark Stevens (520)-328-6356
Customer From October I, 1995 to September 30, 1996
Contract #DAADOI-95-B-0237
Value: $555,540.
Please note: It is against the policy of the Department of Defense to write letters of
citation for Contract performance. Instead, the Department of Defense performs
periodic Contractor Evaluations. Attached are our available Contractor Evaluations.
18
<8
DEPARTMENT OF THE NAVY
OFFICER IN CHARGE OF COIlS1'RUCTION
RESIDENT OFFICER IN CHARGE OF CONSTRUCTION
SOUTHWEST DIVISION, NAVAL FACILITIES ENGINEERING COMMAND
MCAS EL TORO BLOG 1200II
P. O. BOX 94004
SANTA ANA,CA 927_4
IN REPLY REFER TO:
Ser 5SETMSfO028
23 Feb 98
CERTIFIED MAIL-RETURN RECEIPT REQUESTED
P 357 201013
FEDERAL DiSPOSAL SERVICE
PO BOX 18556
IRVINE CA 92713
Subj: CONTRACT N6871l-95-D-8361, REFUSE COLLECTION AND DISPOSAL AT MCAS EL
TORO AND MCAF TUSTIN, CA
Gentlemen:
A copy of a recently completed perfonnance evaluation on the subject contract is enclosed for your records.
If you wish to comment on your perfonnance rating, please notify this office, in writing, within thirty (30)
calendar days of receipt of this letter,
If you have any questions, please contact me, telephone (714) 726-2700.
Sincerely,
oÆ;cU~
MICHAEL STOVER
Contract Specialist
Enclosure (I) - Perfonnance Evaluation
Copy to:
HE
NAVl"AC ~~3QQ/U (~-87)
FO~1RW~~Y
PERFORMANCE EVALUATION Jl SVALUATION """BER LA, CONTRACT NUMBER N687~~-95-D-836~
FACILITY SUPPORT CONTRACTS 0108
/1.8. DELIVERY ORDER No. N/A
'""'RTANT. B. our. CO .""",1". "r'o_n.. "",- - n~r.., ","ielocol opec. .. co.....ry 'or ..y ie-. u.. _rk. "",- - r~n.
PART I - GENERAL CONTRACT DATA
2. DATE OF INITIAL AWARD 12/20/95 3. DATE OF SVALUATION 12/05/97
4. A. CJ INITIAL CONTRACT ŒI 1ST OPTION CJ 2ND OPTION CJ 3RD OPTION CJ 4TH OPTION CJ OTHER
4. B. TERMINATION, CJ DEFAULT CJ CONVENIENCE ŒI N/A
5.A. DONNS II!JMBER 5.B. SIC CODE ,
S.C. CONTRACTOR (Name. Address. and Zip Code) ., TYPE OF CONTRACT ŒI FFP/IO CJ FFP CJ 10
Federal Disposal Service CJ P¡:.i'¿'-ify)
PO Box 1~8
Santa Ana, CA 92702
7.A. AMOUNT OF INITIAL AWARD /7.B. AMOUNT PAID TO DATE
$8~7,888.00 $~,347,9!JQ.62
B. DESCRIPTION AND LOCATION
REFUSE COLLECTION AND DISPOSAL AT MCAS EL TORO AND MCAF TUSTIN
PART II - PBRFDRIWfCB SVALUATIDN OP CONTRACTOR (Check appropriate box)
9. PERFORMANCE ELEMENTS OUTSTANDING SATISFACTORY UNSATISFACTORY
A. QUALITY OF WORK X
B. QUALITY CONTROL PROGRAM X
C, PREPARATION OF SCHEDULES X
D. TIMELY PERFORMANCE X
E. EFFECTIVENESS OF MANAGEMENT X
F. RESPONSE TO REQUESTS X
G. REPORTS REQUIRED BY CONTRACT X
H. COMPLIANCE WITH SAFETY STANDARDS X
1. COMPLIANCE WITH LABOR STANDARDS X
10. OVERALL SVALUATION ŒI HIGHLY SATISFACTORY CJ SATISFACTORY CJ MARGINAL CJ f£!§àT~ U - roven. .
CJ O~~¡>q¡ lco.. U on roven.,
11. EVALUATED BY
A. ORGANIZATION (Type or print) B. PHONE
MCAS EL TORO
FACILITIES SUPPORT CONTRACT BRANCH (714) 726-6832
EL TORO (SANTA ANA), CALIFORNIA 92703
C. NAME AND TITLE (Type of print) 0, SIGNArof. ~ / J~ E. JJ!~/J9'1
RICHARD COOKE, FSC SUPERVISOR
12. EVALUATION REVIEW BY
I PHONE
,A. ORGANIZATION (Type or print) B.
MCAS EL TORO
FACILITIES SUPPORT CONTRACT BRANCH (714) 726-2~ 71
EL TORO (SANTA ANA), CALIFORNIA 92703 -'"
C. NAME AND TITLE (Type of print) D. s-/~// »! _V E'dAT/9'7
PAUL SHERWOOD, INSTALLATIONS DIR. /.J/j/
l"OR¡~~~Y
NAVFAC U30Q/U (1-87 I
FOR OFFXC~ USH ONLY
(WBBN COXPLftBI))
13. REMARICS ON OUTSTANDING PERFORMANCE. AS INDICATED BY THE CONTRACTOR'S PERFORHAllCE ON THE CONTRACT. IF
YOU CONSIDER TIlE CONTRACTOR TO BE OCTSTANDING. SET FORTH FACTtIAL DATA suPPORTING THE OBSERVATION.
THESE DATA MUST BE IN SUFFICIENT DETAIL TO ASSIST CONTRACTING OFFICER IN SELECTING CONTRACTORS THAT
HAVE DEMONSTRATED OUTSTAllDIIIG QUALITY OF WORX AIID RELIABILITY. (Continue on separate sheet if needed.)
9. OUTSTANDING PERFORMANCE ELEMENTS
F. RESPONSE TO REQUESTS. The Còntractor and Site Manager/Dispatcher always
respond quickly to each phone call and accomplish Government requests in an
outstanding manner. They provide fast emergency response to verbal orders
while written delivery orders are in process. '
G. REPORTS REQUIRED BY CONTRACTORS. The Contractor has always submitted all
scheduled reports with the monthly invoice. All invoice and reports have been
correct and on time,submitted on the first of the month or when requested. The
reports that are submitted are weight tickets, monthly manpower reports,
vehicle maintenance reports, and recycled waste reports. The Contractor has
performed outstanding in turning reports into this office on time.
14. EXPLANATION OF UNSATISFACTORY EVALUATION FOR EACH UNSATISFACTORY ELEMENT. PROVIDES FACTS CONCERNING
SPECIFIC EVENTS OR ACTIONS TO Jt1STIFY TIlE EVALUATION--THESE DATA MOST BE IN SUP'FJ:CIEIIT DETAIL TO
ASSIST CONTRACTING OFFICER IN DETERMINING THE CONTRACTOR'S RESPONSIBILITY. (Continue on separate sheet
if needed)
NAVFAC 11300/11 (1- B7 BACK
FOR OPJ'IaA:. t7SB OIILY
(WBBN COJIPLftBI))
~~ ,. _. on-
e7"i28!.199'3 ' 12: 13 7145428435
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~99-C.wx
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.a"al W..pon8 'Sta~1øD
eoa Sed JeacJr B1Yd. 11149. 23
Seal ..ach, CA 90'40~SOOO
DATE:
P,dT I-INSTRUCTIONS
PI- fil1 out hrII 1, Do aad m of œïs 7 pap Put Pcdormmœ QII~tionnaírc on Solid
Watt Muapl!l8llt - mum tb8 COIDPlcrcd copy 10:
30c0NSJLGCV A (AUn: Betty A ~IJCII)
106 13* Strøt, SccIion2D
Vadeaber8 AFB. CA93437-S226
FAX (10$) 922-1703
P1IcIII8: (80S) 60'.&470
Putt n IIId m In cr8cIaI 8IId will nqa1n you .. ;ompllte die eadrt qatlÜOllulre
If - 8ft to coU8d die Ialonaølo8 ......". tor enI88dIra parpeI& P1eI88 devo18
tile tIlDe II8IIIIU')' for tile co"""'" 01 tJaat ....... ... pNYId81ÇpllrdDa
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npparl ad C88ptntln.
p,dr 11- CONTIUCT SPEQFIC /NFOItVÁ.T10N'
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:L Orpzúzaû= PoiDCJ of COIIÞCt UI iDc!ude IllØll.IIIdrIss. .. œlepboael11llDbm of
COIUrIC!åøI ~ar otber individaaIl wba wœbd 0Ii 1bc CGII1rII:C
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4. c:onn=r (N1II1C, Di'risiDu, Addrm atå Zip Code) beiDc IÇCISScd for past
....fchmarlA:
I'EDIML ÞISPOSAL SÐMŒ
, r. u. IIUJI UIS
iMeA Af~ CA --.--uoo
~ --"~',.-~-='..-:-,- - "
s. Type of Coønct: (CIIdc all dlaUPPIy):
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ATT.~~'
Facsimile Cover Sheet
Phone:
URQEI1I
~""'-"-D-OOU
REFUSEiRSCYCLEJ WASTE SERVICES
8IIImD 88JtY%C88, DR: .
ma. ""Z'81. ~ 8eZYS.-
,a~1 .. DOaUI ADBD
8001835-2054
FAX: 714-542-8435
FOR:
COMPANY:
From: ALMA MONTGOMERY
Address: 30 CONS/LGCVB 808 13TH ST,.
SUITE2D
VANDENBERG AFB CA 93437-
5226
Phone: (805) 606-2181
FAX: (805) 922-1703
D8t8: 13 JAN 00
Pages Including this 3
cover page:
IF YOU AGREE wmt 1)£ ATTACHED ASSESSf.ENT. PLEASE SIGN AND fAX THE
SIGNATURe PAGI! TO ME.
PlEASE DISREGARD PREVIOUS FAX
THANK YOU
et ~ aBed
~ndE~:E OO-E~-uer
~L9BSSO9S0B
~SNO:JOE :Á8 : .uas
fOR OFFICIAL USE ONLY 1Wh.. FiIIIclInI
CONTRACTOR PERFORMANCE ASSESSMENT REPORT fCPAR . NOIt1S'n1TÐIISI
......-.- --. .. MIl 3. 1011
1, -- - Of' .-nIAC1"OR - ~I -...nIA~' /-" xl':l 1-
-
SHUBIN SJDlVlCllS. INC- ,-
cIba Federal DÎIIK8I s.n;œ :t. CONlIIAc:r - .. AWÞ~VAUJE
P. O. Bœ 118 FO46I4-97-D-0024 S1.4O6,lU'"
SIIIta Aaa. CA 92702 1I.~-.cER_~
--I HCTOI'I VINCENT W. SANFORD
CAGE ccœ 1U8+.- 30 CONSILOCC
~"..~O 20$151404 Comm.lSOSl 605-8023 DSN: 27So8O23
F8C CODI: SIC CODE 7, -- --.......-.,
.. 4112 ., WILIJAM' 11.. DEEM 30 62330
8. lOCA ~ OF COIITIIAÇ " -- III not .. - , I .. - - .., IIEI'aIIr m¡-
V ANDBNBBRG An. CA 19991030
II. Cl»mlACT - OF PEIW'CIIIIANCE ~
19981001 I 19991030
11. X COMPEmM I I --.mTM J OTIØ
10. CI:INTIW:1' TYPI!IIœY 8UIICON11IACtaII ,~ OIIÐEJUTA1US --.---,-
PFP X NOT oUI'lICAIU
- DUA.o -.aD
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W 'W_\
14. CDNnW:T - ~ ..... - - - - -
TRJ! CONTRACTOR SBAU. noVlDl! All.. PB1ISONNEL, EQUIPMENT, TOOLS. MATIiRIAU. SIJPDVISION. AND
al'BIm rrmø AND SJDlV1C1šS NECESSAltY TO COUJiC1' AND DISPOSB OF lŒFUSI!, CQ.MJNGU I) DCYCLABLB
MATERIALS (INCLUDING TIlŒS). AND OBEEN WASTE AT V ANDENIIEJI.G AIR PORCB BASB. CAlJ1IOBNIA.
..... -- - ...--- -- --
111. EVAWA1E lItE I'CIU.OWIII8 - - - lOA
""'- - -.. -
.. -- REI.A - ~
... _OFIŒV- X
.. 8Qt8 uLE A
d. COlT c:otmIOI. X
.. awwrv Of.PIIOOUCTIIIIWIcII X
111 SPECIAL 1iVENTS SUPPOIn" X
121
3
tel
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181
m
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411
ltell
f. 0'nER~
AFMC FORM 18~.1, 19990301 (EF-V2J
JIIIIVIOUIIDI'I'IaN . 0880LIrI
FOR CFAaAI. UIE lILY - -IIIJ
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'" _noutICI W"WA---II ---'1M
l'BDBlW.. DISPOSAL SBllVICBS HAS DISPLA YãD EXCBYITONAL CUSTOlŒB. SERVICH TO V ANDENBJiIO AFB
DtTRJNG 'IBIS Pl!ltJOD. DAILY COIA(UNICATIONS IIB'1'W1ŒN OUR. OPPICB AND THB CON'IltAC1'OR BA VB
PJ,OVIDED Faa A QUICK: lUISPONSB AND R1!SOLtJ'11ON TO ANY PaOBUDØ 0Jl CONCBRNS TR'AT WI!RB
BROUGHT UP BY BA3B CUSTOMBlIS. DAJL Y WORlt IŒQmISTS WJIIUI AI.. W A. YS A.CCOMPLIIBBD EXPJIDIIIN'n. Y
AND SPFICEl'fILY. FBÐBRALDW'OSAL'S BMPLOYBBS wmm VEllYKNOWI.JmGEABLB AND ALWAYS
PROPBSSIOAUI. FEDBRAL DISPOSAL snVJ'CE HAS BOVEN TlfAT THEY ARB TRULY EXCEP11ONAL IN THE
REFUSE COLI..EcnON BUSINESS.
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n I --- T WOUUI NOT 0 _v WtIUUI NOT 0 _v WOUU)
~ DØN1'ILVWOUUl AWItlG1'O1MAr_-V_--TIHADA-.
17. TVÆ__muOll'.____IYAWA_- --
WlWAM R, DEEM
Chief,S
-
Sec:ùon
30 CES/CBOEC
DAtE
6-2330
,.. CONTtIo\Gt'OR -.. 1--- C\NMI
FEDERAL DISPOSAL SERVTCB IS GLAD TO HA VB HAD THE OPPOKnJNlTY TO PERFORM TRB
COUJICTJONIDISPOSAL (BPUSB; lUICYCLB; OUBN W AS1'B (SOUl) W ASTB) CONTJI.Acr AT VANDENBERG AIR.
FORCB BASE.. WB REMAIN PATIENT POJl TBB NEXT OPPOIU'tJNrIT TO SERVE.
~
800/63502054
DA
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21, 1YPE NAME AHD11TlE OF -- 0ffICW.
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.
DEPARTMENT OF THE NAVY
0ff1CEII1N CHARœ OF CQIISTRUCT1OII
RESIDENT 0ff1CEII1N CHARGE OF COIISTRUCTIOII
SOUTHWEST DIVISION, NAVAL FACILITIES ENGINEERING CO_O
P.o. BOX rr. BLDQ 1138f1
"""'HE CORPS AIR GROUND COIlllAT CENTER
TWENTYMNE PAI..IIS. CALIFORNIA 112278-0107
N68711-97-C-7339
Ser SD221.DB/S69.
6 April 1999
SHUBIN SERVICES, INC.
DBA FEDERAL DISPOSAL SERVICES
PO BOX 118
SANTA ANA CA 92702
Subj:
CONTRACT N68711-97-C-7339; FSC FOR GARBAGE, TRASH &
REFUSE COLLECTION & DISPOSAL (FM7-06S), MARINE CORPS AIR
GROUND COMBAT CENTER, TWENTYNINE PALMS, CALIFORNIA
Gentlemen:
A copy of a recently completed performance evaluation on the
subject contract is enclosed for your records.
If you wish to comment on your performance rating, please notify
this office, in writing, within thirty (30) calendar days of
receipt of this letter.
Thank you for your job efforts.
Sincerely,
~ktnl ,f 1/!4t-
SHARON L. MCGEE
CONTRACTING OFFICER
Enclosure (1) - Performance Evaluation
,"
PERFORMANCE EVALUATION
(SERVICES AND SUPPLY)
IMPORTANT: Be sure 10 """'!'1oU: Pan m - EvaJuaûoa of - EIomoms ... ........
PART I - GENERAL CONTRACT DATA
OFINAL DAIIENDED 4. TERRINATED FOR
ŒJIHTERIR
ODEFAULT
0 CONVENIENCE
3. TYPE OF EVALUATION
SHUBIN SERVICES INC
DBA FEDERAL DISPOSAL SERVICES
SANTA ANA CA 92702, US
6A. PROCURENENT ItET!IOO
[!)SEALED BID DNEGOTIATIED
0 CON
OOFFP nCOST REIllBURSENENT nOTNER
[!)CDIIPEnTIVE ODHDIIPl'/ITIVE
S. CONTRACTOR (NIl_, Address, and ZIP Code)
7. DESCRIPTION OF AEQUIREIIENTS AND LOCATION OF \/OAK
F ACn.rrœs SUPPORT CONTRACf FOR GARBAGE, TRASH.to REFUSE COu.ECllON .to DISPOSAL (FM7~), MARINE CORPS AIR GROUND COMBA
CENTER. TWENTYNINE PALMS. CALIFORNIA
~
:;5 0
~ ñ
C")
.....
0
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I
N
8. TYPEOF~~TRAcrI~
9. FISCAL DATA
A. AIIOLUIT OF BASIC
CONTRACT
$198578.40
B. TOTAL AIIOUNT OF
IIOOIFlCATIONS
$198578.40
C. LIQUIDATED
DNIAGES ASSESS
$0.00,
D. /lET AIIOIIIT PAID
TO DATE
$479,897.80
DATES CONTRAcr/DO DATE CONTRAcr/DO DATE CllllPLETED
05/08/97 06/02/98 06/02/99 / /
PART n - PERFORMANCE EVALUATION OF CONTRACT (Check appropriate box)
11. OVERALL RATI~ OOUTSTANDI~ OABOVE AVERAGE SATISFACTORY OIWlGIHAL DUNSATISFACTORY
ALUA
A. ORGANIZATION
OFFICER IN CHARGE OF CONSTRUCTION
C. NAltE AND
MERRY C. PILGRIM
CONTRACTING OFFICER
14.A. FEDERAL SUPPLY CLASS: S205
B. BUSINESS STATUS: B
FOR omCIAL USE ONLY (WHEN COMPLETED)
'-.....
FACILITIES MANAGEMENT DIVISION
A
L. MJ:TELSZTET
CSR
ALUA
SOURCE SELECTION INFORMATION
- ùR OffiCIAL USE ONLY (WIlL" COM. .nED)
N/A - NOT APPLICABLE
0 - OUTST...OING
A - ABOVE AVERAGE tÐ SATISFACTORY
M - NARGINAL
U - UNSATISFACTORY
15. QUALITY CONTROL
a. QUali'-' of product
b. Qualitv of service
c. loøl....,tation of the CQC plan
PART ill - EV ALVA TlON OF PERFORMANCE ELEMENTS
Nil 0 A S M U 16. EFFECTIVENESS OF MANAGEMENT
X a. ,,--ration and res.....siveness
X b. -..."t of resources/oersonnel
d. Met contract requi r....,ts
e. Storeoe of _torials
f. Adoauacv of _terials
a. Adequacy of subtlittals
h. Adequacy of QC testina
i. Adoauacv of as-bunts
i. Use of s""cified ..terials
k. Identification/correction of deficient
work in a ti_lv _ner
17. TIMELY PERFORMANCE
a. Adherenca to deliverY schedule
b. Resolution of delavs
c. Subtli..ion of r_ired do......,tation
d. Correction of Riner deficiencies '
e. Warranty response
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c. F....-at and cantrol of casU
d. Adeouacv of site cle."....p
e. Effectiveness of i_ita _....ision
f. c-liance with lavs and reaulations
g. Professional conduct
h. Review/resolution of subcontractors issues
i. Ac.-l i_ts under _tracti". alan
18. COIIPllAMcE WITH LA8OR STAMDARDS
a. Correction of noted deficiencies
b. payrons properlv coapleted and subaitted
c. ~~i::,~~~rv~~~~av~ ~eor~~~=~
19. calPllAMCE WITH SAFID STAMDARDS
a. Adeouacv of safetv alan
b. Iaol..."t8tion of safetv alon
c. Cor.....tion of noted deficiencies
20. REllARKS:
Explanalioa of UIIAIisfocU ry evaIuaIion is requirod. 0dIer CommeIIIs ue opcionII. Provide,.... concemiD¡
speciIic ov.... or ....,.. 10 justify die ovakwion. This daIa ..... be in - dOl3ilIO assist
call1nlCÛl1lofflcers in detenoininø die co.......,r's n:spoasibilily. (cooIiøM au -- sheet if needed.
FOR OmCIAL USE ONLY (WHEN COMPLETED)
NO 0 A S M U
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SOURCE SELECTIO¡'( INFORMATION
CITY OF TUSTIN
FEDERAL DISPOSAL SERVICE
INTEGRATED SOLID WASTE
MANAGEMENT SERVICES
PROPOSAL
I c) Past & Pending Litigation
There are no civil legal actions with government agencies now pending or which have
occurred in the past ten years. There are no criminal legal actions now pending or that
have occurred in the past 10 years against:
. Key personnel described below
. Entity submitting this bid; and
. Any parent or affiliated company for actions filed in the State of California
19
CITY OF TUSTIN
FEDERAL DISPOSAL SERVICE
INTEGRA TED SOLID WASTE
MANAGEMENT SERVICES
PROPOSAL
I d) Key Personnel
Donald Shubin. .. . . . President, Secretary and Treasurer
Jose Prospero Arvizu. . . . . . . . . . Operations Manager
LynwoodJones.................. . Controller
20
RESUME
DONALD B. SHUBIN
PRESIDENT
FEDERAL DISPOSAL SERVICE
Mr. Donald Shubin has 19 years experience in the Solid Waste Management Industry. He has
the familiarity with the industry developed by "growing up" in a family Waste Management
business. He has worked in areas of Waste Management ranging from Paper and Recycling
Yard to Sanitary Landfill. Donald B. Shubin has made contributions in the development of
Construction Waste (C&D) Recycling practices in the Greater Los Angeles Area.
Since 1986 he has owned and managed a Waste Management Company doing business as
FEDERAL DISPOSAL SERVICE.
Employment History:
SHUBIN SERVICES, INC., doing business as, FEDERAL DISPOSAL SERVICE
. President 1986 - Present
Solid Waste Management Operational Experience:
. Department of Defense Facility Solid Waste Management
. Commercial, Industrial and Residential Refuse, Green Waste and Recycling
Collection
. Material Recovery Facilities (MRF) Operations
. Green Waste Collection, Processing, and Composting
. Construction and Demolition (C&D) Transportation, Processing and
Recycling
. Waste Facility Permitting
. Class III Sanitary Landfill Operations
Education: Mr. Shubin graduated high school in 1983. He is self-taught in:
. Accounting
. Business & Government Contract Law
. Business Management
21
RESUME
JOSE PROSPERO ARVIZU
OPERATIONS MANAGER
FEDERAL DISPOSAL SERVICE
Mr. Jose Arvizu has 14 years in the Waste Management Industry. Mr. Arvizu has developed a
broad range of professional skills in the Solid Waste Management field. His present position at
Federal Disposal Service is Operations Supervisor, which includes disciplines in Accounting,
Fleet Maintenance, Safety, and Contract Supervision. Mr. Arvizu was the project Superintendent
of Federal Disposal Service's $1.5 mil. facilities renovation.
Mr. Arvizu's experience also includes Quality Control Administrator on Federal Department of
Defense facility solid waste and recycling collection contracts.
Employment History:
SHUBIN SERVICES, INc., doing business as, FEDERAL DISPOSAL SERVICE
. Operations Manager 1986 to Present
Solid Waste Management Experience
. Fleet Maintenance
. Month End Accounting
. Safety
. Route Quality Assurance
22
RESUME
LYNWOOD RAY JONES
CONTROLLER
FEDERAL DISPOSAL SERVICE
Experienced Controller, Accountant and Financial Analyst with supervisory positions at multi-
entity and multi-state public, private and non-profit companies in Financial Services and
Manufacturing sectors. Maintained and provided complex financial information, plans and
business projections and fiscal records.
Work History:
. Federal Disposal Service, Controller
. Robert Half Professional Management Services,
Financial & Accounting Contract Consultant
. YES Capital Funding Inc., Encinitas, CA, Controller
12/99 - Present
9198 - 12/99
1997 - 9/98
Responsibilities:
Full charge Controller. Develop and maintain fiscal records including GAAP, AIR, AlP, fixed
assets with closings, financial statements and audit, detailed analysis of financial performance,
cash flow, reconciliation of accounts, variance analysis, financial and unit costs modeling, and
capitalloperating plans and budgets preparation. Multi-user accounting software installation and
maintenance on NT LAN.
RHI PROFESSIONAL MANAGEMENT SERVICES: Waste Management of North County,
Oceanside - Consolidation of three companies G/L and preparation of CY 1999 Operating
Budget by Natural by Product Line (with Controller); Phamatech - New accounting software
installation and change ITom sole proprietorship to "S" (with Controller); Depotech - develop
capital and operating budget for new production plant for newly approved FDA drug (with
Controller); ATS Corporation - Development of Strategic Plan and Capitalization Sourcings
(with President); Rancho Cielo Estates, Ltd. - development of cash projection model for $100
million property development project; costing by activity-based method (with CEO); LegoLand,
Inc. - Develop inventory reconciliation interface between GIL and PurchasingIWarehouse (with
Manager, Accounting); McHenry Metals Golf, Inc. - Close last three months and Fiscal Year,
prepare FYE statements, preparation for external audit (with COO).
YES CAPITAL FUNDING. INC.: Controller (Residential Loan broker/lender in 21 states). All
accounting and budgeting, multi-state payroll, treasury, investments (Merrill Lynch), loan
warehousing line maintenance (Ford Motor Credit), 21 state licenses and audit compliance, FYE
CPA audit responsibility, maintain 20 node NT4.0 LAN. (report to President).
23
CITY OF TUSTIN
FEDERAL DISPOSAL SERVICE
INTEGRATED SOLID WASTE
MANAGEMENT SERVICES
PROPOSAL
I e) FINANCtAl'lNFORMA TION
1. The attaehed Mimed eft.elel's sefttati1~ Fiflaneiel StatemeBts efSffiæin Sef\'Íee~, IR&. The
Financial Statements are submitted for the purpose of evaluating this offer. The Financial
Statements are to be kept confidential and not disclosed outside the City of Tustin. They
are not to be duplicated or used fur any purpose other than to evaluate this offer. We
request the return of the Financial Statements after the Bid evaluation process is
complete.
There are no material adverse changes in the condition or operation of Shubin Services,
Inc. as reflected in the submitted Balance Sheet & Income Statement since the dates on
which they were prepared.
2. Source and Use of Funds (Capital Equipment)
3. Sunwest Bank letter
4. The Associates letter
24
CAPITAL REQUIREMENTS
Carts
$1,300,000
Trucks
1,540,000
825,000
$3,665,000
Bins
SOURCES
Sunwest Bank
The Associates
$1,000,000
$2,665,000
Affinnative but non-committal, conditional upon receiving the City of Tustin Award
responses, have been received from the above lenders (See attachment in Section 6).
FDS will furnish finn commitments from its lenders upon being detennined apparent low
bidder.
25
Su1west Bank
January 10, 2000
City Clerk
City of Tustin
300 Centennial Way
Tustin, CA 92780
Re:
Bid for Integrated Solid Waste Management Services
Shubin Services, Inc. dba Federal Disposal Service
To Whom It May Concern:
I am pleased to provide a banking reference for our customer, Shubin Services, Inc.
Shubin Services, Inc. has banked with Sunwest Bank since 1995. They are in good
standing with us and handle their banking relationship in a satisfactory manner.
Shubin Services, Inc. currently has an open credit facility at Sunwest Bank with a low
six availability. Although this is not to be considered a commitment, we are willing to
consider additional credit availability to Shubin Services, Inc. subject to our normal
underwriting and approval criteria.
If I can be of further assistance or if you need additional information please feel free to
call me at my office in Tustin at 714-730-4430.
Sincerely,
(~¡;~
Fred S. Sneddon
Vice President
FÐI€
535 E. First Street
Tustin, CA 92780
4710 Campus Drive
Newport - CA 92660
501 S. MaIn Str8eI
Orange, CA 92868
~
£. THE ASSOCIATES
January 14, 2000
City Cleric:
City of Tustin
300 Centennial Way
Tustin, CA 92780
RE: Bid for integrated solid waite management semces of 51mbin Services, IDe.
Shubin Services, Inc. has been a customer of Associates CoJl1lllelcial Corporation for over six years. The
current loan outstandinP are in the high six figure range and are in good standing. All accounts are
handled in a prompt and satisfàctory manner.
If Shubin Services, Inc. is uamed the apparent low bidder, Associates Commercial Corporation would be
happy to consider a request for additional equipment fiDancing undcT our normal underwriting
requirements.
If any other information is needed do not hesitate to <:a1I mel at 714-704-6245.
I
I
Sinœre1y ,
~ 7í:. ;:b~
Anne M Eubanks
District Manager
500 N, State College Blvd..Suite 1350. Orange. California 92868
P,O, Box 25189. Anaheim. California 92825. 714/704-ô200. Fax: 714/704-6270
CITY OF TUSTIN
FEDERAL DISPOSAL SERVICE
INTEGRATED SOLID WASTE
MANAGEMENT SERVICES
PROPOSAL
Is) PROPOSED SERVICES
26
PROPOSED SERVICES
The following submitted information should be viewed as supplemental information to
the RFB and Franchise Agreement. This section provides information on "how" FDS will
perform service tasks and is not an all-inclusive list of "what" will be performed. This
Section is provided to assist the City in its evaluation of the reasonableness ofthis offer.
The RFB, Franchise Agreement, and applicable City Codes, provide a complete list of
requirements and specifications for City of Tustin Integrated Solid Waste Management
Services.
Some services are being offered beyond the scope of the RFB and Franchise Agreement.
Services that are offered that exceed the scope, or specifications of the RFB or Franchise
Agreement are included to accomplish a particular goal. All services proposed in this
section are included in the Price Offered.
a) REFUSE COLLECTION
Commercial and Multi-Family FRONTLOADER Refuse Collection
Commercial and Multi-Family refuse collection will be performed using state-of-the-
art, Frontloader style waste collection vehicles. Amrep or similar 38 cubic yard
bodies will be used on 10-wheel, 51,000 GVW chassis's. (Amrep is not offering the
best delivery schedule right now and an alternate body manufacturer may be used.)
Our company's chassis preference is the Volvo WG-64 model. (In order to save the
reader the burden of redundant information, all collection vehicles, unless otherwise
stated, will be to-wheel, 51,000 Gross Vehicle Weight, Volvo WG 64 model
vehicles).
Each commercial and multi-family refuse collection vehicle will be manned without a
helper. (Unless otherwise stated all collection vehicles in this offer are manned by a
single operator.) When circumstances require (during peak volume periods, i.e.
Mondays and Holidays), a full time helper will be on routes to assist and improve
collection productivity.
Information below lists truck, route, and productivity assumptions used in the
development ofthis Commercial and Multi-Family refuse collection offer. FDS
understands that actual work volumes fluctuate from day to day, and that it will
always have available a sufficient number of collection vehicles to perform required
collections.
Prior to Franchise commencement, all new 2, 3, and 4 cubic yard, Frontloader style,
bins will be distributed for Commercial and Multi-Family refuse collection use. The
27
bins will be constructed out of steel with extra heavy-duty plastic lids and high
quality 6' rubber casters. Easy to use locking mechanisms on container lids will be
available to customers upon request. Watertight containers with drain plugs will be
distributed to wet food customers to eliminate liquid seepage. Frontloader containers
will be constructed with a special "eye" for easy Bin Truck loading and unloading.
Small volume Commercial and Industrial Customers may request and receive
Automated service described in the Single-Family 3-Cart system. Commercial,
Industrial, and Multi-Family customers may continue to receive Manual refuse
collection service.
Commercial and Multi-Family Frontloader routes will be developed by waste stream
characterization. Customers that have a high-percentage recyclable content will be
collected together and delivered for sorting to a Material Recovery Facility.
Container Cleaning and Replacement
Container delivery, pick-up, and container cleaning will be perfonned with a Bin
Truck attachment. A Bin Truck attachment is a flat bed, stack side roll-off bin. The
unit has an electric hoisting means for container loading and unloading. Bin cleaning
will be accomplished at Federal Disposal Service's Santa Ana Operation Facility. A
customer may request up to one cleaning or replacement per year at no additional
charge. Additional cleaning or replacement will be available, upon request, at RFB
prices. Unsightly and damaged containers will be noted on the collection report and
replaced within 3 working days.
Single Family Residential Refuse Collection
Residential Refuse Collection (along with recycling and yard waste) will be
perfonned utilizing all new right hand drive Automated collection vehicles. Our body
manufacturer is still undetennined. Each collection vehicle will be manned with one
driver (they don't drive themselves... yet). Routes will be developed, in conjunction
with City approval, which maximize efficiencies and do not cause unnecessary
intrusions into neighborhoods that are not actually receiving collections. Automated
collection service will be implemented to all Single-Family dwelling units where it is
operationally feasible.
In accordance with the Implementation Plan, each Single-Family dwelling unit will
be provided (3) 96-gallon collection carts, (refuse, recyclables, and yard waste). If a
customer requests, a smaller 64 or 35-gallon cart will be provided or exchanged at
any time.
28
Below are route numbers and productivity assumptions, used in the Single-Family
Refuse bid.
Trucks
2
Routes
2
Unit/Da
878
All carts are in accordance with specifications of the RFB and Franchise Agreement.
The City may elect to take ownership of the carts at the conclusion of the 7-year
Franchise Agreement.
Where required by access and other circumstances, Manual can service shall remain
the method of Refuse Collection at a number of Commercia II Multi-Family
Customers. Collection will be perfonned at these customers using one of the
Frontloaders ITom the Commercial/Multi-Family routes.
Temporary Bin and Roll-off Service
Roll-Offbin service will be available on a scheduled or on-call basis. Containers
range in size from 10 to 40 cubic yards. Charges will be applied on a flat rate plus
dump fees. Dump fees will be passed thru in accordance with Bid Schedule.
Temporary bin service will be available and charged on a per load basis in accordance
with RFB price of$50.00.
A 1999 WG-64 Volvo, which is currently in the FDS fleet, will be utilized to perfonn
Roll-off service on the Tustin Franchise. The second, partial unit will be available as
required by service demand. Additionally, the Swing Truck listed below has Roll-Off
capacity and will help out with a few loads per day. Below are quantity and
productivity estimates used in the preparation of this bid.
Trucks
I
Routes
1.5
Unit/Day
8
DaYS~eek I
Swing Truck
Key to the company's seemingly effortless service delivery is the element of a Swing
Truck. The Swing Truck generally perfonns low priority tasks, but on a moments
notice, can swing to assist a number of high priority routes or services. The Swing
Truck perfonns tasks that are time-consuming, allowing better overall production
from other collection vehicles. Services resulting ITom this offer include the
operation of a special multi-function Swing Truck.
29
Regular Priority assignments of the Swing Truck include:
I. Roll-off
2. Green waste and recycling, single-family
3. Bulk Item Pick-up
4. Abandoned Item Collection
5. Container Delivery and Pick up
High Priority Assignments of the Swing Truck include:
I. Backing up equipment failures of Single Family Refuse, Recyclables and
Yard Waste
2. Responding to and correcting service complaints
FDS will use its presently owned 1997 WG 64 Volvo for the Tustin Franchise Swing
Truck.
The Swing Truck driver is a working foreman who becomes intimately familiar with
and responsible for conditions at all service locations in the Franchise service area.
The foreman, having first hand knowledge of field conditions, is effective at building
quality performance from other route operators. The Swing Truck operator responds
to a service problem and is able to, (I) resolve the immediate situation of the
complaint, (2) diagnose the cause, and (3) offer a remedy to prevent the re-occurrence
ofthe event.
b) RECYCLABLES COLLECTION
Commercial Industrial and Multi-Family COM INGLE Collection
Thru a public awareness effort, a Commercial and Multi-Family Co-mingle
recyclable collection route will be developed and operated in the City. The collection
of Co-mingle materials will be available by either a Frontload style bin or the fully
Automated carts.
A Frontloader Recycling Truck will perform collections from all Frontloader
Recycling bins. This truck will be allocated to performing Commercial, Industrial,
and Multi-Family Recyclables and Green Waste collection. It will be distinctively
painted and logo'd to add attention to the City Recycling programs. Recycling
containers will be distinctively painted and logo'd to bring public awareness to the
city's recycling program.
30
Commercial PAPER Collection
A Commercial Paper Recyclable route will be developed and offered to City
Commercial and Industrial customers who's waste stream characteristic is high in
paper. Commercial paper collection will be provided utilizing Automated or
Frontload style bins. Collections may be performed on a scheduled or on-call basis.
On-call service will be available to customers that have a one-time event that
produces a large volume. The Frontloader Recycling Truck will perform
containerized and loose paper collection.
Below are productivity and quantity information on the Frontloader Recycling route:
Trucks
2
Routes
1.5
And, of coarse, best of all, in accordance with the pricing policy in the RFB, all
Commercial and Multi-Family recycling collections will be performed without
additional charge to the customer. All costs, overhead and profit of operating the
City's Co-mingle, Paper, and Green Waste recycling collection route will be passed
thru in Refuse collection charges or by proceeds from material sales.
Single Family Recyclable Collection
As a component ofthe 3-Cart Single Family Residential collection system,
recyclables will be collected once per week (on the same day as trash) from each
Single Family dwelling unit. A standard right-hand drive, IO-wheel Automated
collection vehicle will perform Single Family Recycling collections. Again all
recycling vehicles performing under the Franchise Agreement will be painted to
distinguish them from trash collection vehicles. They will bear prominent but tasteful
recycling promotional signage. On most days, the Swing Truck will be available for
an hour or two on this route.
Below are the productivity assumptions and volumes that this company based its offer
on.
Roll-off Recycling
Mixed roll-offloads with a high percentage of recycling content will be diverted to a
Material Recovery Facility (MRF) for sorting. At pick-up, the driver will make a
determination to potential recycling content of the load. Customers with clean dirt,
concrete, asphalt, or redbrick materials will be offered and encouraged to separate the
31
recyclable materials. The Roll-off driver will view and evaluate each mixed
Construction and Demolition (C&D) loads for recyclable content. Loads with high
recyclable content will be diverted to a recovery/processing site.
Customer Diversion Audits
Our Customer Service Representative will perform Customer Diversion Audits to
maximize AB 939 diversion credit opportunities. Customers will be interviewed
regarding potential unreported or undocumented recycling.
c) YARD WASTE COLLECTION
Commercial Industrial and Multi Family Yard Waste Collection
Curbside Automated Yard Waste or "Green Waste" collection shall be available to all
Commercial, Industrial and Multi-Family customers. Collections will be performed
utilizing a standard Automated style collection vehicle. A 96 gallon cart will be
provided to customers for the accumulation and pick-up of yard waste. This service
will be available at no charge.
Additionally, a Green Waste Frontload bin collection service will be offered to City
Commercial, Industrial and Multi-Family customers that dump Green Waste inside of
on-site trash containers. Costs of providing the Green Waste collection to
Commercial, Industrial, and Multi-Family customers will be charged according to the
standard refuse collection service charges. The Frontloader Recycling Truck will
perform collection of Green Waste Frontload bin route.
Single Family Residential Yard Waste Collection
As a component ofthe 3-Cart Single-Family residential collection system, Yard
Waste will be collected from each participating customer. Collection of Yard Waste
will be performed on the same scheduled day as trash collection. A 96 gallon cart
will be provided unless a customer elects to choose a small 64-gallon cart. Customers
may also elect to have no Yard Waste collection service. Tied bundles of yard waste
will be collected. A standard right hand drive Automated collection vehicle will be
performing Single-Family Yard Waste collection. The Yard Waste collection vehicle
will be specially painted to promote Yard Waste recycling.
Below are equipment and productivity assumptions used in the development of the
Yard Waste collection Bid.
Trucks
I
32
Christmas Tree Collection and Recycling
The Franchisee will perform Christmas tree pick-up and recycling following the
Christmas holiday. Curbside collections will be performed on the regular scheduled
trash collection day. Christmas Tree collection will be performed using a tow behind
chipper. FDS will strategically place Roll-Off containers in the city for collection of
extra holiday trash, trees and wrappings during this period.
SPECIAL SERVICES
City Facilities' Collection
FDS will perform all Refuse collection service required at City owned and/or
operated facilities. A roll-off container will be provided at the City yard, at no charge,
for Green Waste hauling. ~~~
Abandoned Item Collection
FDS will perform abandoned item collection from City streets, alleys, and right-a-
ways. A roll-off container will be placed inside the City yard for disposal of
abandoned items collected by City crews for no charge.
On-Call Bulky Waste Pickup
Customers will be provided up to two bulky item waste pick-ups per year.
FDS will perform the required bulk item pickups with the Swing Truck route.
Reusable or Recyclable bulk items will be marketed or donated to obtain diversion
credit. White goods will be handled according to protect against damage to their
frion system.
City Sponsored Events
(JJ~ FDS will perform refuse and recycling collection to all City sponsored events
utilizing anyone of the appropriate collection vehicles. ~\~) ~ ~ ..4-r
e) DISPOSAL, TRANSFER AND PROCESSING FACILITIES
Disposal
Refuse collected from Commercial and Industrial points that have a functioning
source-separation Recycling service and are a low recyclable characteristic will be
taken directly to the Bowerman Canyon Landfill.
33
vJ~ì
1'P'
\j~ r¡
c}t (;
~.
~
Transfer and Processing Facilities
High-content recyclable character refuse will be collected segregated and delivered to
a Material Recovery Facility (MRF). Co-mingle recyclables will also be delivered to
a MRF. Several offers have been received from locally permitted MRFs, (copy in
Section 6). An agreement will be finalized upon being named apparent low bidder.
Current plans have us taking recoverable materials to CRTransfer in Stanton. Yard or
Green Waste will be delivered to Tierra Verde in Irvine.
FDS will market green waste materials to users that provide full diversion credit.
Attached, in Section 6, are letters from facility operators.
CR&R
Tierra Verde
OPERATING FACILITY
S will provide required Vehicle Garaging, Dispatch, Customer Service, Billing,
Public Relations, and Franchise Administration for services resulting from this offer
at:
1661 E. Palm Street
Santa Ana, California
Donald Shubin and 2 members ofFDS management team own the facility. The
facility is comprised of 47,000 SF of warehouse on 2.87 acres ofland. The facility
has recently been refurbished in accordance with a City of Santa Ana Improvement
Plan. FDS currently occupies an approximate 3,000 square feet of office containing 7
workstations and 6 computer (network) terminals. FDS has a 2-Bay, 3,000 SF
Mechanic Shop for all in-house repairs and maintenance. FDS occupies only 25% of
the available square footage at the facility with the balance leased out on short-term
arrangements. FDS may have additional space at the facility for performance ofthe
City of Tustin Franchise.
g) IMPLEMENTATION PLAN
Residential Implementation Plan
In order to avoid dual residential collection - automated and manual - which would
be required with an incremental phase-in ofthe new automated system, FDS is
,$Ør^~ proposing to phase in all Single-Family dwelling units upon or prior to the Franchise
\ ~Je commencement date. The cart manufacturer will perform cart assembly and
~ ~ d~ J JJ..- ~\~ ~l V\,
cÆï- Ó 34
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d-I"#'
required by apparent circumstances, 96-gallon carts will be delivered to each Single-
Family dwelling unit. If a resident requests a smaller 64 or 3S gallon cart one would
be exchanged.
FDS collection routes would commence upon distribution of carts. Some routes,
therefore, would start prior to the Franchise commencement date. Approximately y,
of the carts would be delivered on the second week prior to Franchise
commencem ollections prior to the Franchise commencement date will be
ed at no charge. Iffor any reason, distribution of the carts is not accomplished
prior to the Franchise commencement date then FDS will perform manual collections
¡j from those areas until distribution is accomplished. Distribution will be performed in
\)\~ \t - ") an orderly and controlled manner. Requests from customers that require a container
... 'ili~\~\I~J\~!. size change will be responded to within 3 working days.
do Upon Franchise award, a comprehensive and proactive Public Education and
Information effort will be launched. Included in the effort will be:
~~\\
v-'~
~(.(¡
\~
~ \\\ ~
~;A#
\
~\)\}.,
~
1. Individual contact and meetings with Associations Groups
2. Regular public news bulletins
3. General hand-out informational brochures for distribution and or mailing
4. Informational updates on an FDS web site
An easy to read information/education brochure will be left with the new automated
carts providing the day of week pick-up and other general educational and
informational messages. FDS will obtain written City approval of all handout
brochures before distribution.
Commercial Industrial & Multi Family Refuse Implementation Plan
Upon Franchise Award FDS will promptly begin Frontloader route development.
Route development includes gathering frequency, quantity, and billing information.
Information will be obtained and verified well in advance of service commencement
by an organized door-by-door precinct walks.
A principal element of Commercial IInd us trial, and Multi-Family Implementation
Plan is the proactive Public Education and Information component. FDS will
individually contact Business Association Groups and provide instructional
information. FDS will actively solicit constructive input and ideas.
Distribution of Frontload and Roll-Off Bins will be performed over the 2-week period
prior to Franchise commencement. Distribution will be done with two separate
distribution crews each with a flat bed semi and Frontloader collection truck.
Containers delivered prior to Franchise commencement will be serviced to prevent
unsightly or unsanitary conditions. Maximum cooperation will be offered to the
existing service provider including picking up their containers when we deliver ours.
3S
'.}J\t\1- '.
Commercial, Industrial & Multi-Family Recycling Implementation
Distribution of Co-mingle and Paper Frontloader containers will begin 90 days after
Franchise commencement. A later phase-in is planned to allow City residents and
businesses time to acclimate to the new service provider.
Start-up Resources
For common well-understood reasons, productivity during the Start-up phase of
services is not as efficient as during matured regular schedules. To allow for this
~ \ start-up period contingency and not have a disruption in service performance, the
~It. following extra equipment and personnel will be allocated during the start-up period.
q
Regular Start-up
Commercial Multi-Family 4.5 Routes 7 Routes
Residential Single-Family 4.0 Routes 6 Routes
Roll-off 1.0 Route 3 Routes
Customer Servicel Billing 2.0 staff 6 Staff
Administration 2.0 staff 4 Staff
Cart and Bin Distribution 10 Staff
h) CUSTOMER SERVICE AND BILLING
Prevention of Calls
Of course, the best solution to a call is the prevention of the call. Already discussed
is the operation of a Swing Truck. The Swing Truck operator will catch many
matters before they become service calls.
Customer Service Facilities and Billing
Customer Service functions will be performed out of the FDS Operations Facility at
1st & 5 Fwy. FDS currently has a 10-line expandable phone system to handle
incoming calls. Several dedicated direct lines will be installed and used for the City
of Tustin Customer Service. Customer service representatives manning the City of
Tustin phone lines will have unique knowledge of Tustin. Whenever possible, they
will respond to calls while a customer is on the line which includes calling a driver on
the radio and responding to the customer on hold. Account balance and payment
information calls will be handled over the phone, by fax follow-up, or e-mail inquiry
and response. Customers will be responded to in a courteous manner and will not be
transferred around or put on hold unnecessarily.
Any reported missed pickups will be collected, regardless of what caused the missed
pickup, the same day, including instances of the Customer failing to place a cart out
36
at curbside, and a container being blocked by a parked car. Chronic repeat
complaints will be reported to the City Administrator on the Franchise. !J6.¡.,r'J c.""Src1)MU'
t-ð" \
ct as liaison '
ativ will assist with:
L,""I~d">1 ?
A full time Customer Service Representative will
between Customers and FDS. e- er Service Repr
I. Expediting unique customer requests,
2. Quality Control Reviews, and
3. Public Relations, Education and Information
i) HAZARDOUS WASTE MANAGEMENT
FDS will perform hazardous waste screening of solid waste and recyclable colle ed
under the Franchise. Collection employees will, on a routine basis, be trained on
hazardous waste observation and management procedures. FDS shall perform all
required notifications including agencies with jurisdiction, if appropriate, including
the California Department of Toxic Substances Control and Local Emergency
Response Providers and the National Response Center. FDS shall maintain records
identifying the types and quantities, if any, of hazardous waste found in solid waste
and which was inadvertently collected from customers within the City, but diverted
from the landfill.
j) PUBLIC INFO, EDUCATION, and RECYCLING PROMATION
FDS recognizes that Effective Solid Waste Management is developed and steered by
a user-friendly Public Information and Education component.
"t
{ Ja,u .
Each service area has a single channel or number of preferred channels to dissemina
information, and receive impute. FDS hereby commits to learning and using the Ci
of Tustin preferred communications channels whether they be The Chamber of
Commerce, Local Cable, Home Owners Associations, City Events, and or
Community Organizations. FDS will make the best use of available opportuniti to
inform and promote the City of Tustin Integrated Solid Waste Management Pr ram.
FDS will provide regularly updated contact and pick-up schedule changes fì ~,,~
holidays on its web site. ~. . InI
A full-ti Customer S ice Re re . 1 manage the Information, ~, ,
Education, and Recycling Promotion efforts under the Franchise Agreement. r
~~
~~1'~
~_. 37
CITY OF TUSTIN
INTEGRATED SOLID WASTE
MANAGEMENT SERVICES
PROPOSAL
FEDERAL DISPOSAL SERVICE
16) OTHER
Material Recovery Facility (MRF) letters:
1. CRTransfer
2. Taormina Industries
Green Waste
1. Tierra Verde Industries
City Business License
38
r
~~:
;~~cÞ
tjí (J-t
u.9\ ¡;; ?
ý'/\
CR~
---
"'32 KNOrr."",
PO, BOX 12.
STANTON. CA 90680
(m)826-""'.
Janumy 13, 2000
FedèraI Disposal Services
Don Shubin
P.O Box 118-
Santa Ana;CA 92702
Dear Don,
Thànk you fòr the opportnnity to offer you I3II:s for the City of Tustin franchise proposal CR TIIÌDs!èr
(CRT) is prep=d to offerrecycl~ services for the scven- (7} year rerm of the ftancbise agreement. CRT is
permitted for 1800 tons per day and cum:ntIy averages about 1450 tons per day so we can commit available
processing capacity to Federal Disposal , .
A more coinprebènS¡ve agreeinent to protéct both out iDterests can be eriterédinto if Federal is awarded the
fran<:bise. The basics would include imnuiIlCPI increases for All Urban Consumers for the Los Angeles-
Long Beach Area and pass through of 0Iangc County landfill tip fees if necessæy. '
Per our previous discussions, CRT offers the following 1311:s:
ConunerciallMulti-family 15%Diversion
Commercial/Multi-family 25% Divasion
Roll 0If25% DivasiOB. '
Commingled Single StreaÎn Material PrOcessing
(Federal will be paid the marlœt value of the material)
, $41.32Jton
" $4S.74/ton
$36.44Iton
$48J)(lIton
Thank you again for the opportunity to be of service to your company. I look forward to us getting together
to discuss other recycling services in the near fiJÌme:. Good luck on your proposal
, ff}'"" .,~
,~..
0 Røcvded ""-
IIßAORMINA
INDUSTRIES
A CALIFORN/A COPORAT/ON
January 14,2000
Mr. Don Shubin
Federal Disposal Services, Inc.
1661 East Palm Street
Santa Ana, CA 92701
Dear Mr. Shubin,
This letter is the written confirmation you requested for the upcoming City of Tustin
bid. These rates are good for the City of Tustin material only. Additional information
regarding the various waste stream rates and specifications are outlined below. The
material received cannot contain any liquid or hazardous waste. Rates will become
effective July 1,2000.
I. Residential Commingled Curbside Processing: $7.00 per ton
The commingled curbside material must be collected ITom residential customers
and arrive at our facility in an "Automated" recycling vehicle. The compaction of
the vehicle must be low enough not to break more than 20 % of the glass. This rate
is subject to annual adjustments based upon market prices. Additional charge will
be imposed if the residue is over 15%.
2. Commercial Waste Processing: $40.42 per ton
This material encompasses the remainder of the waste stream ITom the City of
Tustin including multi-family residential, commercial and industrial sources. This
material can arrive in any truck type. This rate will be fixed for seven (7) years
subject to an annual CPI adjustment.
3. Direct Waste Transfer: $33.75 per ton
Waste received that you wish not be processed can be moved direct to the landfill
at $33.75 per ton. The driver must inform the scale house operator at the time of
the transaction that they wish this to be a "direct transfer" load and subject to the
lower rate. Large bulky materials received that cannot be handled through our
normal transfer process may be subject to an additional $6.00 per ton charge. These
rates will be fixed for seven (7) years subject to an annual CPl adjustment.
Da""AuII
Execut/veOlreclor
F.."hi,.Admln/S!,.ilo"
Reg"""IH..dquaIt.~
PoS! Offi", Box 309
AnallIHm, CA 92815-D309
r_.714238,33OO
Facslmll.714238,3309
* "'""O~~~=".,,"
Mr, Don Shubin
-2 -
January 14,2000
4. Residential Green Waste Processing: $25.86 per ton
The green waste material must be collected from residential customers and arrive at
our facility in an "Automated" recycling vehicle. The green waste material must be
substantially free of contamination containing no more than 2% trash. If you have
green waste sources such as roll off vehicles containing material from commercial
landscapers, gardeners, etc. which have "clean green waste" containing less than
0.5% trash, we can handle this material for $22.00 per ton. This rate is subject to
annual adjustments based upon market prices.
Please call me if you have any questions.
Sinçerely,
L~C~
Dave Ault
cc: Tom Vogt
Stuart Lee
§~
INDUSTRIES
Greenwaste . Composting
January 13,2000
Don Shubin
Federal Disposal Service
P.O. Box 118
Santa Ana, CA 92702-0118
RE: Greenwaste Quote for Curbside Bid
Dear Don,
This letter recaps our discussion this morning regarding the greenwaste from the City of
Tustin. It is my understanding that you might bid on the hauling contract, and as such,
need a firm price on the greenwaste recycling service which our iàcility provides.
The following clearly states what information I passed on to you this morning. Please .
realize that the curbside greenwaste that we have experience with, has historically been
contaminated. On a percentage basis, the contamination by weight might seem
insignificant, but the contamination is usually spread throughout the entire load; this
contamination forces us to sort the greenwaste.
WIth this in mind you have been quoted the following prices for greenwaste: 100%
absolutely clean greenwaste with NO CONTAMINATION AT ALL $20.00 per ton. If
there happens to be ANY contamination in the loads, sorting will become required. Our
price to you would be $22.00 per ton. One ton minimums would be in effect. All
contamination which is pulled out of the green waste would then be placed in a Federal
Disposal Service (FDS) roll-offbox and this material would be hauled to the landfill by
IDS. All trucking and disposal costs shall be paid for by FDS.
Tierra Verde Industries (TV!) operates in the Unincorporated Irvine area directly behind
the £1 Toro Marine Base. The main location at 7982 is permitted to accept 425 tons per
day. Presently, there is available capacity to accept the additional tonnage which would
come from the City of Tustin. Our newest iàcility, located across the street, at 7973
Irvine Blvd, is permitted to accept 1500 tons per day. Operations have not yet
commenced at this site; so between the two sites, we have more than enough capacity to
accept this tonnage should you be awarded the contract.
TtERRA VERDE INDUSTRIES
Mailing Address: PO, Box 24 . Irvine. CA 92650
7982 Irvine Blvd, . irvine, CA 92618 . 714-55H)363 Fax 714-551-1532
31748 La Pata Ave. .San Juan Capistrano. CA 92675 . 714-728-0401 Fax 714-728-0403
Recycled paper
Don Shubin
January 13, 2000
Greenwaste
Page 2
We would hold these price quotes steady for the first year of the contract, provided we
enter into a long term serviceJdisposaVrecycling agreement. Standard CPI increases of not
less than 2% or more than 5% would probably be included in our contract. In the event
that any governmental taxes or fees are imposed on the processing or recovery of
greenwaste, we would have to negotiate a new pricing agreement, Additionally, should
the market for compost or ADC become problematic, we would need to revisit these
tenns again.
Other contract terms would be spelled out should you be the successful bidder.
Please call me if you have any questions. I can be reached at (949) 551-0363.
sm:7 .
:z{ -I- ~
Kris ~'
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BUSINESS LICENSE TAX RENEWAL NOTICE
1/1/00 to 12/31/00
City of Tustin
300 Centennial Way
Tustin, CA 92780
(714) 573-3144
FAX(7I4) 573-3113
THIS RENEWAL NOTICE AND PAYMENT MUST
BE RECEIVED BY JANUARY 31,2000' .
TO AVOID PENALTIES
99011857
12/31/19
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SHUBIN SERVICES, INC
POBOX 118
SANTA ANA, CA 927020000
1616 4TH ST
SANTA ANA, CA 927010000
(714) 542-7701
1661 E. Palm street
Santa Ana, CA. 92701
LOCAL TRUCKING WITHOUT STO
E
770052359
SHUBIN, DON
42 CYPRESS TREE
~\n1{E,CA 926230000
(714) 733-2620
C1295548
CALCULATE YOUR BUSINESS LICENSE TAX DUE from ONLY ONE of the Business Types identified in Table 1,
-- 2 or 3 on the reverse side and follow the instructions within that Table, Transfer the total amount due from either
Table 1,2 or3 here: S' 5'().oO
Delinquent Fees: Tustin City Code imposes a penalty for late renewal of25%.ofthe business tax assessed on the lost
- day of each month after the license expires to a maximum of J 00% of the tax per year, To a,'oid penalties, your
payment must be received by Jannary 31,2000.
CHECK ONE
Q1 I am conducting business in the City of Tustin and wish to renew my license, All of the above
~ information is correct or has been corrected. My payment is enclosed,
0 This business is no longer conducted in Tustin, The business closed on
Please cancel my license, Payment not necessary.
J certify under penalty of perjury that all the above infJ
ponald Shubin
Pnnt Name
Make checks payable to: CITY OF TUSTIN
RETURN THIS ENTIRE FORM IN THE ENVELOPE PROVIDED.
f' ':OR:O':FICEUSE:DNt'f,
!
t,
¡
is true and correct,
1-10-99
Date
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,.,.."",:,:::,::::I-:Amount"j,:
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1
1
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TABLE 1 -IDENTIFIED BUSINESSES - FLAT RATE
/. Idenrify your business type from Ihe following lisl. If your business type is not listed, go to Table 2.
2. Circle the entire line with yaur business type and Ihe carresponding business license tax amaunt.
3. Transfer the corresponding tax amount to the front of the form in the space pro,'ided.
BUSINESS TYPE TAX AMOUNT
Bath, steam room, Dool, ovm, health club $35.00
Buildina Contractor - Class A or B $80,00 -
Sub Contractor - Class C or D $40.00
Dav care or child care center $25.00
Fortune.teller $100.00
Home for the aged/rest home 1 to 4 guests $15.00
5 to 9 'guests $25.00
10 or more guests $35.00
$40.00
$25.00
$25.00
$100.00
$25.00
$25.00
$35.00
Housemover
Lawn care and gardener
News;.;a!>er/maaazine distributor
Pawn broker
Private oatrolman, detective aaencv, security patrol
Rooming/boarding house '4 to 9 roomers'
10 or more roomers
'TABLE 2 -IDENTIFIED BUSINESSES - CALCULATED RATE
I, ldenrify your bus,iness type from the following lisl, ¡fyour business type is not listed, go to Table 3.
2. Circle the entire line with your business type and complete the indicated calculation to determine your business
license tax amount.
3. Transfer the results ofrhecalculation to theIront of the form in the space provided,
I TAX RATE I USE
BUSINESS TYPE CALCULATION
Ambulance/Deliverv Vehicle/Route Sales or Service I S25.00/vehicle I A
BusfTaxicabfTowlCaterina Truck I S25.00 + $1 O/additional Vehicle I B
Rental of residential, commercial, industrial property I S25.00 for the first 4 units plus I C
(Each Address Must be ,Calculated Separately - Not $1.00 for each additional unit
Added Tooetherl
Trailer parklMobilehome park I S25.00 for the first 4 spaces plus I C
$1.00 for each additional space
Transfer, moving by vehicle (not otherwise classified) 1$25.00 + $5.00 for each vehicle I D
CALCULATIONS >Ø
A Total number of vehicles = '2-- x$25.00 = $ 50.
B. Total number of vehicles = _x$10.00 = $
C. Total number of rental units/spaces = -4 =
D. Total number of vehicles = x$5.00 = $
+$25.00 = $
x$1.00 =$
+$25.00 = $
+$25.00=$-
TABLE 3 - GROSS RECEIPTS TABLE - FLAT RATE
For Wholesale, Retail, Manufacturing, Professional and Personal Services located in Tustin
A..1\i'D Those Businesses not having an office in Tustin but with agents working in Tustin
I. Idenlify your gross receipts from the pre,'ious year.
2. Circle the entire line with your gross receiptS and the corresponding business licensf! lax amount,
3. Transfer the corresponding businf!Ss liCf!TZSf! lax amount to thf! front of Ihf! form in Ihf! spacf! pro,'ided.
GROSS RECEIPTS I TAX AMOUNT
$0 to $25000 I '$25.00
$25001 to $100000 I $40,00
$100001 to $200000 I $50.00
$200 001 to $300 000 $60.00
$300 001 to $600 000 I $80.00
More than $600.000 I $100,00
TAORMINA INDUSTRIES BID
Response to
Request for Bids
for
City of Tustin
Integrated Solid Waste
Management Services
* * *
January 18, 2000
IflAORIIINJI
I N 0 U 5 r R I E-5
1131 N. Blue Gum Street
Anaheim, California 92806
(714) 238-3300. Facsimile (714) 238-3309
81AORAflNA
INDUSTRIES
r
A CALIFORNIA COPORATION
January 18, 2000
City Clerk
City of Tustin
300 Centennial Way
Tustin, CA 92780
RE:
Transmittal Letter: Response to Bid Request for Integrated Solid Waste
Management Se'rvices
On behalf of its parent company, Republic Services, Inc., Taormina Industries, L.L.C.,
(Taormina), is pleased to present this Proposal for Integrated Solid Waste Management
Services in response to the Request for Bids issued by the City of Tustin.
We look forward to the opportunity to serve the residents of the City of Tustin and
believe our proposal provides a very cost effective integrated waste management system
tailored to the needs ofthe City of Tustin. In addition to the outstanding waste
reduction and recycling capabilities Taormina Industries is renowned for, the greatest
attribute of our company is our reputation for providing excellent service, which we
believe is unparalleled in the Orange County area.
Taormina Industries was founded in 1949 and has grown to be one of the leading and
most reputable solid waste management companies in Orange County. The foundation
of that growth and success has been based on excellent service and customer relations,
continuity in management and operations personnel, innovative and intelligent program
development and implementation, and an outstanding work ethic and tireless dedication
to serving the needs of our municipalities. These attributes have been augmented by our
state-of-the-art operating systems and well organized and managed routing,
maintenance, safety, environmental, and public education programs, Notwithstanding
our growth and position in the industry, we have maintained a personalized, "hands on"
approach to meeting the needs of the city and residents of the cities we serve. The
senior management of Taormina will be involved in every aspect of the Tustin program
along with its unsurpassed team of operations and management personnel.
Taormina has an excellent track record of implementing new contracts and has received
praise from our municipal customers for seamless transition from predecessor to our
T11omIsJ. Vogt
P,esldenl &
Chl,IExeculNeOffiCeI
Posl Office 80x 309
Anaheim, CA 92815-0309
Telephone 714,238,331XJ
FecslmNe 714238,3309
Mahelmo;sposal
8,eao;sposal
Garden Groveo;sposai
PlacenllaDlspo¡;al
Wla Pari< Disposal
YorbaUndaDIspo¡;aJ
DlsposalSelVlces
CVTRecycllng
* ffi_OO~~~'~'
Tustin City Clerk
- 2-
January 18,2000
new programs and services. We are in a position to implement the program as requested
by the City of Tustin. The Taormina Industries Implementation Plan sets forth our
thorough approach to implementing new contracts, including a task-by-task timeline for
implementation and extensive procedures for route and customer data base
development. Descriptions of Taormina's experienced team of professional staff and
operations personnel are included. We encourage the City of Tustin to contact
Taormina's current municipal customers to gauge the success of the Company's
implementation plans and the quality of service provided by Taormina in those
communities.
Taormina is known for its excellent customer service. Our prompt and efficient service,
immediate response to customer requests and our emphasis on an aggressive approach
to customer service has resulted in an extraordinary level of customer satisfaction and
very few customer complaints. In addition, Taormina has longer operating hours and
more customer service representatives when compared to other solid waste service
companies in the Orange County area. These facts, with the use of our Computerized
Customer Call Log and Work Order System, translates into easy and immediate access
for customers and timely and efficient follow-up and resolution by Taormina.
Given Taormina's long history in the recycling and waste reduction business, we have
developed detailed reporting systems for use in the City of Tustin. Taormina also has
comprehensive vehicle maintenance, safety and environmental compliance programs
that exceed industry standards and regulatory requirements. Tustin residents through
better, safer, more efficient and uninterrupted service will ultimately realize the benefits
of these programs.
DOver 50 years ofleadership and innovation serving Orange County cities,
D Locally based with a personal commitment to high quality services.
D Outstanding reputation for impeccable service and moderate fees for
service.
D Highly experienced transition team.
D Loca/ Municipalfranchises served by Taormina Industries:
. Anaheim . Brea . Colton
. Fullerton . Garden Grove . Placentia
. Villa Park . Yorba Linda
Tustin City Clerk
- 3 -
January 18,2000
r-
0 Taonnina operates Orange County's largest Material Recovery
Facìlitynransfer Station located in Anaheim.
0 Long-term disposal agreement with the County of Orange. Serves
as a low-cost, back-up disposal site throughout the tenn of the
Tustin contract.
D Materials Recovery Facility currently processing materials from
approximately 160,000 homes.
D Local Fleet size of 300 Plus Vehicles,
D Professionally prepared Public Information pamphlets, brochures
and publications.
0 Assembly Bill 939 Compliance and Cercla Indemnification.
D Full Spectrum of Services, in addition to providing standard waste
collection and disposal services, Taonnina offers:
. All types of Recycling
. In-House Recyclables
Processing & Marketing
. Special Pick-Up Programs &
Clean-Up Campaigns
. Green Waste Recycling
. Community Education
Programs
. Consulting Services
We declare to the City that we have the technical experience, financial ability, state-
of-the-art equipment and facilities to meet the requirements of the City of Tustin.
:~g~'\~
President V V .
L
Table of Contents
v
Anti-Collusion Affidavit and Notary's Certification Attachment 5
Responsible Bidder Information Attachment 6
Copy of Cart Manufacturers Warranty
Manufacturer's Certification of Carl Conformance Attachment 7
Executed Signature Pages from Franchise Agreement and Amendments #1 and #2
Attachment -y
Proposed Rates Attachment 3
Supporting Cost and Operating Data Worksheet Attachment 4
I, Bidder Overview
a) Business Structure
b) Description of Bidder's Experience
c) Information Regarding Past and Pending Litigation
d) Key Personnel
e) Financial Data
II. Proposed Services
a) Refuse Collection
b) Recyclables Collection
c) Yard Waste Collection
d) Special Services
e) Disposal, Transfer and Processing Facilities
1) Operating & Administative Offices
g) Implementation ptan
h) Customer Service and Billing
Introduction
Basic Customer Service Principles
Customer Service During The Transition
Customer Billing
Procedures For Dealing With Customer Requests And Inquiries
i) Hazardous Waste Management
j) Public Education
III. Other Relevant Information
~
January 18, 2000
-i-
Taormina Industries, LLc.
1
2
3
5
6
9
10
11
11
11
16
16
18
19
19
21
23
24
25
25
26
28
28
29
29
29
30
31
31
32
ANTI-COLLUSION AFFIDAVIT AND NOTARY'S CERTIFICATION
ATTACHMENTS
Bidder as a part of this bid submits the following affidavit:
The undersigned deponent, oflawful age, being duly sworn, upon his oath deposes and says: That
he has lawful authority to execute the within and foregoing bid; that he has executed the same by
subscribing his name hereto under oath for and on behalf of Bidder; that Bidder has not directly or
indirectly entered into any agreement, express or implied, with any Bidder or Bidders, having for
its object the controlling of the price or amount of such bid or bids, the limiting of the bids or
Bidders, the parceling or farming out to any Bidder or Bidders or other persons of any part of the
contract or any part of the subject matter of the bid or bids or of the profits thereof, and that he has
not and will not divulge the sealed bid to any person whomsoever, except hose having a partnership
or other financial interest with him in this bid or bids, until after this sealed bid or bids are opened.
Deponent further states that the Bidder has not been a party to any collusion among Bidders in
restraint of freedom of competition; by agreement to make a bid at a fixed price or to refrain from
submitting a bid; or with any City official or employee as to quantity, quality, or price in the
prospective contract; or in any discussions between Bidders and any City official concerning
exchange of money or other things of value for special consideration in the letting of a contract;
that the Bidder has not paid, given or donated or agreed to pay, give or donate to any official,
officer or employee of the City directly or indirectly, in the procuring of the award of contract
pursuant to this bid.
SIGNED
Executed under penalty of peIjury on this 17th day of J
BY _Thomas J. Vogt
TITLE _President and Chief Operating Officer
Subscribed and sworn to be before me this 17th day of January, 2000 at Anaheim, California.
4¿dÆ ~(l~
'Rebecca A. Pittman '
Notary Public
My Commission expires: October 27,2001
1- - - - -RE~~CA-A.;ITT~ -,
. Commission /I 1157355
~ '.. Notary Public - California ~
i Orange County 1
- - - -My:a:m.::.~~2:~1
January 18, 2000
- 1-
Taormina 1ndustries, L,L,c.
Responsible Bidder Information Attachment 6
Requirement Yes No
I. The bidder has previously provided exclusive residential refuse
collection services to at least one public agency with a service X
area population of at least 30,000 in the past ten years.
2. The bidder has previously provided exclusive commercial
refuse collection services to at least one public agency with a X
service area population of at least 30,000 in the past ten years.
3. The bidder has previously provided fully automated residential
refuse collection services (either refuse, recycling or X
yardwaste) to at least one city or county in the past ten years.
4. The bidder has previously provided yardwaste collection X
services to at least one city or county in the past ten years.
5. The bidder has previously provided recycling collection X
services to at least one city or county in the past ten years.
6. The bidder has previously initiated new exclusive residential
and commercial service in at least one city 'or county as part of X
a transition from a previous service provider.
7. The annual revenues ITom the Tustin Contract (estimated at
'approximately $S rnillion per year at current rates) will be less X
thàii 33% of the bidder's existing annual revenueåSl'eported
forits most recently completed fiscal year.
8. I have listed below all supporting data required to explain the X
responses in this fonn.
Backup for Above
1. City of Anaheim, California
2. City of Garden Grove, California
3. City of Brea, California
4. City ofYorba Linda, California
5. City ofPlacentia, California
6. City of Villa Park, California
7. $5 rnillion would be 00.36% of 1998 Annual Revenue of$I,369.l million
January 18, 2000
,2-
Taormina Industries, L.L.c.
ml!~
"",
..,.....--,......~ '
The following are descriptions of several situations where the warranty
does not apply. Exclusion includes, but is not limited to these situations.
NORMAL WEAR AND TEAR
. Scratches - Normal use may cause scratches to the plastic.
. Dirt - Includes the accumulation of dirt or any other substance.
. Normal deterioration during service.
. Normal discoloration due to exposure to the elements.
NEGLIGENT OR ABUSIVE USE
. Cuts or scores from any source.
. Extraordinary impacts such as being hit by a vehicle.
. Burns, scorches, melting. Any damage from excessive heat
. Improper handling. Includes dropping stacks off deJivery trucks,
improper stacking, forcing carts through a narrow opening, allowing
packer mechanisms to hit cart during the dumping cycle, ,abrasion from
excessive dumping or cracks caused by,', improper handling or
dumping.
. Damage from automated grasper or semi-automated lifter. Includes
any scratches, creases, cracks or breaks from a maladjusted,
incorrectly operated or improper automated grasper or semi-automated
lifter. This includes any semi-automated lift speed faster than two
seconds for either the lift cycle or the down cycle.
. Improper unloading i.e. - jamming cart into garbage not yet removed
from the hopper.
. Chemicals. Being exposed to solvents, petrochemicals, paints, acids
or any other chemical substances, which damages plastic or metal
parts.
. Improper use. Being used other than for storage, transport and
dumping of normal household residential solid wastes or recyclables,
including such uses as: Construction, industrial, institutional and use
for landscaping, liquid storage/transport, bulk solids storageltransport,
recreation and food service.
. Failure to follow the instructions imprinted on cart or other parts.
January 18, 2000
- 3,
Taormina Industries, L. L. C.
ml!~
.UHlMt8flOLÿ:.fHft.IMlt,~ .
Roto Industries, Inc, warrants its automated/semi-automated refuse
containers from failure in normal and regular use by the original purchaser
due to defects in material and workmanship. This warranty covers each
container (including hardware) for a period of ten (10) years from the date
of purchase.
This warranty is limited to any component part proven to Roto Industries,
Inc. to be defective in material and workmanship. Containers determined
to be defective by Roto Industries, Inc. shall be repaired or replaced at
Roto Industries discretion. Repair or replacement of containers is the sole
remedy available under this warranty.
No accumulation of defective containers shall exceed $2,000.00 in value
without written notice to the manufacturer. The manufacturer may at his
convenience, inspect any such containers and may challenge his
obligation to replace the container on the basis that the failure resulted
from negligent handling or abusive use. If such is the case, then the
manufacturer shall not be required to replace any such containers. If a
disagreement exists regarding the reason for the failure, they shall select
a third party skilled in the use and fabrication of the materials involved and
shall ask his determination which shall be binding on both parties and they
shall abide by it
The userlpurchaser shall replace any container or component part
damaged through user negligence, abusive use, normal wear and tear
and containers used for purposes other than intended. In no event shall
Roto Industries, Inc. be liable for labor and installation, incidental or
consequential damages, for loss of time or product or delays in
performance under this warranty.
Warranty is exclusive to purchaser.
ROTO INDUSTRIES, INC. MAKES NO OTHER WARRANTY,
EXPRESSED OR IMPLIED, INCLUDING WARRANTY OF
MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR USE.
January 18, 2000
- 4,
Taormina Industries, LL,c.
Following are the headings for the specific design specifications and performance
requirements for the automated carts to be obtained and used in the performance of the
Franchise Agreement. Review the Franchise Agreement section referenced (Attachment 9) and
check the space for "Yes" if the carts COIÚorm to the design specification or performance
requirement or "No" if the carts do not conform to the specification or requirement.
Cart Desisn Specifications ~
1. Capacity - Section 4.5,3.1.1 X
2. Cart Handles - Section 4.5.3.1.2 )(
3. Cart Lid - Section 4.5.3.1.3 X
4. Foot-Hold - Section 4.5.3.1.4 X
5. Cart Colors - Section 4.5.3.1.5 -L-
6. Wheel Design and Axles Assembly - 4:5.3.1.6 -X-
7. Identification Markings - 4.5.3.1.7 X
8, Additional Parts - 4.5.3.1.8 -L-
9. Replacement Parts - 4.5.3.1,9 ----X---
Cart Performance Requirements
1. MinimumServiceLife-4.5.3.2.1 ~
2. Cart Load Capacity .,. 4.5.3.2;2 ---A-
3. Cart Durability - 4.5.3.2.3 ~
4, Chemical Resistant - 4.5.3.2.4
5. S~bility and Maneuverability - 4.5.3.2.5
6. Lid Performance - 4.5.3.2.6
7, Reparability - 4.5,3.2.7
I have read the sections of the Franchise Agreement referred to on the previous pag~ and checked
whether or not the carts included in the Bid for the City of Tustin Integrated Solid Waste
Management Services conform to the design specifications and cart performance requirements
contained therein.
$~ .Jff!!: _...~
,-
ATTACHMENT 7
MANUFACTURER'S CERTIFICATION OF CART CONFORMANCE
N2
_Rotv ]]uJu<,tn'eA I D6,
,
Name of Cart Manufacturer
lLJ4-/zrxn
Date
January 18, 2000
- 5-
Taormina Industries, LLc.
AtTACHMENT 9
EXECUTED SIGRATUBE PAGE !'lWM AGIŒEIŒNT
13.6
Severability
If any non-material provision of this Agreem!,!nt is for any reason deemed to be invalid
and unenforceable, the invalidity or unenforceability of such provision shall not affect
any of the remaining provisi01"l5 of this Agreement which shall be enforced as if such
invalid or unenforceable provision had not been contained herein,
13.7
Exhibits
Each of the Exhibits identified in this Agreement is attached hereto and incorporated
herein and made a part hereof by this reference.
13.8
Non-Waiver Provision
Fail~ of either party to exercise any of the remedies set forth herein within the time
periods provided for shall not constitute a waiver of any rights of that party with regard
to that failure to perform or subsequent failures to performingwhet:h.er determined to
be a breach, excused performance or unexcused defaults by the other. party.
IN WITNESS WHEREOF, the City and the Company have executed this Agreement as of the
day and year first above written.
CITY OF TUSTIN
("City")
ATIEST:
CITY CLERK
By
MAYOR, CITY OF TUSTIN
APPROVED AS TO FORM:
By:
City Attorney
Title: President & Chief Executive Officer
By:
January 18, 2000
.6-
Taormina Industries, LLc.
ATTACIIKENT 9
Addendua No.1
Q6: In Section 4.5.3.1.1 of the Franchise Agreement, the document refers to
container sizes "60 to 70 gallons". Would the City consider revising that
section to increase the size range to 70 gallons?
A6: In Section 4.5.3.1.1 of the Franchise Agreement, second bullet, replace "60 to 67
gallons" with "60 to 70 gallons".
This Addendum is to be incorporated in and become part of the Bid. This
Addendum No.1 must be acknowledged by signing and dating in the signature
and date blocks below, and should be included with the Bid by attaching it to the
returned signature pag:e of the Franchise Agreement.
C T~'7þ. ~
Director of Public Works
/4~ð
~
January 17, 2000
Date
President & Chief Executive
Company Officer
January i 8. 2000
- 7-
Taormina industries. L.L.c.
~an-14-00 12:46P City aT Tustin PW Deptm
P.O2
ATrACIIIIDT 9
ADDENDUM NO.2
TO THE REQUEST FOR BIDS FOR
INTEGRATED SOLID WASTE MANAGEMENT SERVICES
City of Tustin
300 Centennial Way
Tustin, California, 92780
Bids Due January 18, 2000
The Request for Bids (RFB) Documents shall be revised by additions to, deletions from and
changes as stated in this addendum; insofar as original Documents are in variance with this
Addendum, this Addendum shall govern. The following changes are hereby incorporated.
The diskette containing the Excel file of Attachment 3 that was made available to the
bidders at the Pre-Bid meeting on December 16, 1999 requires two changes that the bidder
should make before submitting its proposal:
a) On Rows 1 and 2 in the "Monthly Billings" column, the Bidder should enter a formula
to calculate monthly billings by multiplying the "Proposed Monthly Rate" by the
"Estimated Number of Service Units." The formula in the êolumn for" Annual Billings"
on Rows 1 and 2 should be revised to be "Monthly Billings" multiplied by 12,
b) In the Rolloff Box Billings.Section, Row 17, the "Units Per Year" should be revised to
13,407 to correspond to the correct number of tons shown in Attachment 3 in the RFP.
The diskette contained an incorrect value of 10,50!! tons,
This Addendum is to be incorporated in and become part of the Bid, This Addendum No.
2 must be acknowlede-ed by signing and dating in the signature and date blocks below. and
should be included with the Bid by attaching it to the returned signature page of the
Franchise Agreement.
C / -C). fþg-
Tim 5erlet
Proposer's Signat c
January 18. 2000
I~t
~
January 17, 2000
Date
President & Chief Executive Officer
Company
-8-
Taormina Industries, LLC
Attachment 3
Proposed Rates
15,36 737 $ 11,320.32 135,844
1,752.883
1 2 3 4 5 6
$ 59,00 $ 79.00 $ 101,00 $ 114.00 $ 138,00 $ 180,00
$ 79.00 $ S9.00 $ 101.00 $ 114.00 $ 138,00 $ 180.00
$ 84.00 $ 99.00 $ 116,00 $ 134.00 $ 163,00 $ 210,00
4
2 Cubk Yards 84 20 9 1 2
3 Cubk Yards 2S3 S62 340 125 132 62
4CubkYards 30 80 97 23 49 46
Total 367 662 446 148 182 110
So....., Waste Managemen~ Inc, The City doea not asaume any reaponsibility 10, the a=acy of the ..ported úún......tion
Connnemal and Multi-Famllv 8m Sillinea
1 2 4
4,956 $ 1,580 $ 909 $ 138 $ 360 $ 7,943
19,987 50.018 34,340 14,25(} 18,216 1U60 147,971
2,520 7,920 11,252 3,082 7,987 9,660 42,421
$ 27,463 $ 59,518 $ 46,501 $ 17,332 $ 26,341 $ 21,180 $ 198,335
$ 329,556 $ 714,216 $ 558,012 $ 207,984 $ 316,092 $ 254,160 $ 2,380,020
_AI Serv-
23 T empo'ary Sin Serviœa - Pe< Pull, plua 55 po' day..., 7 daya $ 50,00
24 Locldng Sin - Coat pe< bin P'" month $ 5.00
25 Bin Cieaning (in exco.. of one bin cleaning po' yea,> - Each $ 35,00
26 Additional Bulky Waste Pickup (in exceaa of 2 P'" yea,> - Each $ 20,00
27 Additional Sneci.l PickuP"" Automated Cart Cuatom... (in excess of 2 ~ vead - Each $ 5,00
. Th... unit eslimatea will be uaed Eo, pu<poaes of calculating ,ate ...enue and
detennining the propoaer. ovenill coot. II aaaumes thatan.ingIe family, duplex, and
triplex units will """lve automated cart ....ice,
¡.nU>H]' 18.2000
- 9,
r""","~1nduatriæ,LLC
Attachment 4
Supporting Costs and Operating Data
Projected Revenue Req1rirement for the Fh'st Twelve Months of the Franchise Agreement
Truck Operating Costs (a) $ 235,745 J 235,745 $ 235,710 $ 45,76Q. L....6O6.,52!!.J $
2 ProœssingCosts - 0 231,552 104,728 24,840 926,730
3 Disposal Costs 158,752 21,708 f-~I---~ __~75
4 Container Costs S7,663 57,663 S7,633 I-----=- ~2~
5 General. A_Iralive and Profit 135,648 164,000 119,446 25,217 651,039 140,9%
6 Franchise Fee 11,9% 7,809 10,562 1,934 57,3~- ~
7 Other - (328,032) - (14,490) (446,638) (1,191,330)
8 TOTALRBVENUEREQUIREMENT $ 599,804 $ 390,445 $ 528,162 $ 96,716 $ 2,865,875 $ 1485,826 $
9 Tons CoDected 7,216 4,824 5,512 690 30,891 13,237
10 Revenue per Ton Collected 83.12 $ 80.94 $ 95.82 $ 140,17 $ 'I2,77 $ (36.70) $
11 Tona Diverted $ - $ 4,100 $ 5,512 $ 242 $ 10,812 $ 11,251 $
(a) Includes Driver/Helper/Supervisor Wages and Benefits, Vehicle Depreciation and Maintenance, Vehicle 1nsuranceand Other Route Costs.
27,~
2,7551
(2,246)
137,789
-m
441.631 $
203 $
155,822-
!~9
(174,492)
616,956 $
13,407
46.02 $
6,033 $
fanuary 18, 2IXJO
17
18
19
20
Number of Routes per Day:
Automated Cart Routes
- Refuse Routes
- Recycling Routes
- Yard Waste Routes
Manual Can Refuse Routes
1.67
1.67
ï~
1.00
Bin Routes
- Refuse
- Recycling
Roll-Off Box
SF &< MF BuJky Item Pickup and Other
4.00
1.00
2.00
1.00
4.00
1,00
2.00
1.00
21
22
23
Total Routes
. For Example, 8, 9 or 10 hours per day.
14.00
14.00
~:I!Q...-- 4.00 4.00
1.00 1.00 1.00
__2.00- -~ --~
1,00 1.00 1.00
14.00 14.00 14.00
,10 -
r.onnina Indu""... L.L,C
BIDDER OVERVIEW
a) Business Structure
Taonnina Industries, L.L.C., a Limited Liability Company, a wholly
owned subsidiary of Republic Services, Inc., a Delaware corporation,
operating in the Southern California area that provides municipal solid
waste collection, disposal and recycling services to over 500,000
residents and businesses weekly. There are no creditors owed a debt
greater than 10% of the company's assets. Officers within California
are: William C. Taonnina, Thomas J. Vogt, President; David M. Ault,
Executive Director, Franchise Administration.
Taonnina Industries, L.L.c.
Regional Headquarters
1131 N. Blue Gum Street
Anaheim, CA 92806
(714) 238-3300
Parent Company
In 1997, Taonnina Industries merged with the parent company,
Republic Services, Inc., is located in Fort Lauderdale, Florida.
Republic Services currently ranks as the third largest solid waste
company in North America.
Republic Services, Inc.
110 S.E. 6th Street
Suite 2800
Fort Lauderdale, Florida 33301
b) Description of Bidder's Experience
Taonnina Industries is the Orange County operating division of
Republic Services, Inc. Republic, the nation's third largest solid waste
services provider, has consolidated several of the premiere solid waste
and recycling companies in Southern California into a highly effective,
cohesive unit. Taonnina Industries has been in the solid waste
January 18. 2000
-11-
Taormina Industries, L,L.c.
collection, disposal, and recycling business for over fifty years and is
headquartered in Anaheim, California. With over 550 employees and a
fleet of over 300 vehicles, the finn holds long-tenn contracts with
seven Orange County cities for the collection, disposal, and recycling
of the waste stream for residential, commercial, and industrial solid
waste. All relationships with municipalities are founded on long-tenn
contracts. Taonnina Industries is the largest, waste handling firm in the
State of California. Taormina Industries operates the state's highest
volume waste transfer stationlMaterials Recovery Facility (MRF) with
a daily throughput of over 3,500 tons. Taormina Industries was the first
firm in Southern California to utilize fully automated collection
programs for the collection of both solid waste and recyclable
materials.
Considered an industry pioneer, Taormina Industries has been involved
in the solid waste collection, disposal, and recycling business since the
late 1940's. Brothers Vincent C. Taormina and William C. Taormina
have worked in the firm since childhood, and both remain involved in
the operations and administration of the company. Taormina Industries
provides exclusive solid waste collection, disposal, and recycling
services to the cities of Anaheim, Brea, Colton, Fullerton, Garden
Grove, Placentia, Villa Park, and Yorba Linda. Additionally, the finn
operates the CVT Transfer Station and Materials Recovery Facility
(MRF), which provides solid waste disposal and recycling services to
cities throughout Southern California, as well as numerous private
citizens and commercial users.
In Anaheim, we transitioned 56,00 residents from manual to automated
trash and recycling collection. This started in 1989 as a pilot program
for 10,000 residents which was initiated before the enactment of
AB939. The main obstacle was the resistance ofthe residents to
change from manual to automated. By educating them for these
changes, it became popular to Reduce, Reuse, Recycle. After the
successful completion of the Pilot Program, the entire city was
converted by 1991.
In 1989, the City of Brea transitioned to the two-can automated system.
In 1996 the city added automated yard collection. With the experience
January 18, 2000
-12-
Taormina Industries, L.L.C
obtained from the City of Anaheim program the education of the
citizens was crucial to ensure the program's success.
In 1990-1995, fully automated recycling, trash and yard waste
programs were implemented in the cities of Garden Grove, Placentia,
Yorba Linda and Villa Park for a total of over 60,000 residents. Each
program was introduced with the assistance of both city staff and the
community.
In 1996, Taormina Industries was the successful bidder for the City of
Colton. As the successful bidder, Taormina was able to take over the
city's municipal residential and commercial solid waste operations.
Colton's residential manual services were transitioned to fully
automated trash, recycling and yard waste collection programs.
Municipal Citations
A service profile of each municipality for which Taormina'Industries
provides waste collection, disposal and recycling services is provided
below.
City of Anaheim
Taormina Industries provided the first automated recycling program in
Orange County prior to AB939 being enacted as law. Taormina
Industries is the exclusive franchisee for residential and commercial
waste collection, disposal and recycling.
Years of service
Drop-off Recycling Program
Office Recycling Program
Contact person:
Mrs. Doris Roush, Streets & Sanitation Manager
400 E. Vermont Street, Anaheim, CA 92805
(714) 760-6860
50 years
56,000
5,000
Community-Wide
City Facilities/Commercial
Residential units served
Commercial lindustrial accounts served
January i8, 2000
-13-
Taormina industries, LLc.
City of Brea
Taonnina Industries is the exclusive ftanchisee for residential and
commercial waste collection, disposal and recycling.
Years of service 22 years
Residential units served 9,500
Commercial lindustrial accounts served 1,000
Drop-off Recycling Program Community-Wide
Office Recycling Program City Facilities/Commercial
Contact person:
Mr. Pat McCarron, Director of Maintenance Services
545 N. Berry Street, Brea, CA 92821
(714) 990-7648
City of Colton
Taonnina Industries is the exclusive ftanchisee for residential and
commercial waste collection, disposal and recycling.
Years of service 4 years
Residential units served 10,500
Commercial lindustrial accounts served 750
Drop-off Recycling Program Community-Wide
Office Recycling Program City Facilities/Commercial
Contact person:
Mr. Daryl Parrish, Assistant City Manager
650 N. La Cadena Drive, Colton, CA 92324
(909) 370-5071
City of Garden Grove
Taonnina Industries is the exclusive franchisee for residential and
commercial waste collection, disposal and recycling.
Years of service 22 years
Residential units served 31,000
Commercial lindustrial accounts served 2,500
Drop-off Recycling Program Community-Wide
Office Recycling Program City Facilities/Commercial
January 18, 2000
-14 -
Taormina Industries, LLC
Contact person:
Mr. Keith Jones, Streets Manager
11222 Acacia Parkway, Garden Grove, CA 92840
(714) 741-5379
City of Placentia
Taormina Industries is the exclusive tÌ"anchisee for residential and
commercial waste collection, disposal and recycling.
Years of service 22 years
Residential units served 11,000
Commercial lindustrial units served 750
Drop-off Recycling Program Community-Wide
Office Recycling Program City FacilitieslCommercial
Contact person:
Mr. Robert D' Amato, City Administrator
401 E. Chapman, Placentia, CA 92870
(714) 993-8117
City of ViII a Park
Taormina Industries is the exclusive tÌ"anchisee for residential and
commercial waste collection, disposal and recycling.
Years of service 10 years
Residential units served 2,000
Commercial lindustrial units served 20
Drop-off Recycling Program Community-Wide
Office Recycling Program City FacilitieslCommercial
Contact person:
Mr. Fred Maley, City Manager
17855 Santiago Boulevard, Villa Park, CA 92861-4187
(714) 998-1500
City ofYorba Linda
Taormina Industries is the exclusive tÌ"anchisee for residential and
commercial waste collection, disposal and recycling.
Years of service 40 years
January 18, 2000
-15-
Taormina Industries, LLC
Residential units served
Commercial lindustrial units served
Drop-off Recycling Program
Office Recycling Program
Contact person:
Mr. Dave Gruchow, Assistant City Manager
4845 Casa Lorna Avenue, Yorba Linda, CA 92686
17,500
600
Community- 'Yide
City FacilitieslCommercial
(714) 961-7110
c) Information Regarding Past and Pending Litigation
Neither Taonnina Industries, it's key personnel nor any parent or
affiliated company conducting business in the State of California have
any pending civil legal actions with potential liability above $50,000 or
criminal legal actions which have occurred in the past ten years.
d) Key Personnel
Taonnina Industries has assembled a management and operations team that is
unsurpassed in the industry. The combination of traditional refuse collection
experience, recycling expertise, innovative management systems, and the
integration of new technological advances places Taonnina Industries in the
best position to serve the waste handling and recycling needs of Tustin. In
addition, Taonnina Industries' in-house training, personnel advancement and
recruitment programs are among the most comprehensive in the industry. This
has enabled Taonnina Industries to attract and keep people who are among the
most qualified, dedicated and experienced in the business.
To underscore our commitment to serve the City of Tustin, Thomas 1. Vogt,
President, Dave Ault, Executive Director, and Ric Collett, Vice President for
Taonnina Industries, will personally oversee the management and operation of
the City of Tustin contract. Taormina Industries has committed the following
key team members and included a general description of their duties and
responsibilities with respect to the Tustin program:
January 18. 2000
- 16-
Taormina Industries. LLc.
Thomas J. Vogt, President. Tom is a graduate of California State University,
Fullerton. As President of the Company, he oversees the operations of and the
direct implementation ofthe municipal franchises encompassing almost
500,000 residential customers receiving automated, semi-automated and/or
manual solid waste collection, recycling and green waste collection services in
the California market. In addition, Tom directed the design and construction of
Orange County's largest and most successful MRF/Transfer Station.
Ric Collett, Vice President, Operations. Ric is a graduate of California State
University, Long Beach. Ric's major areas of responsibility are solid waste and
recycling collection operations, including the automated collection system
serving all our residential customers, special customer transportation
operations and customer service functions. He has designed and implemented
dozens of residential and commercial sector refuse, recycling and waste
reduction programs. Customer Service Representatives and Operations
Personnel work closely with Ric, as well as city personnel.
Dave Ault, Executive Director, Franchise Administration. Dave is a
graduate of the University of California at Irvine. Dave previously worked at
Disneyland for 18 years as head ofthe Administrative Services Division. Dave
is responsible for the entire mixture of operations throughout the company, as
well as monitoring our municipal contract relationships. Dave's ability to
interpret the goals and demands of our municipal customers has enabled him to
be a staff resource for city managers and staff in the cities we serve.
Michelle Zola, Controller. Michelle has 8 years experience in business
finance with 5 of those years in the waste and recycling industry in Southern
California. She graduated with a Bachelor of Arts degree with an accounting
emphasis from California State University, Fullerton. Michelle is also a
Certified Public Accountant.
Carlos Rivera, Director of Human Resources & Risk Management. Carlos
is responsible for the development, implementation and administration of all
phases of Human Resources and Risk Management for all of Taonnina
Industries. Primary responsibilities include employment, HRIS, compensation,
benefits, organizational development, affinnative action labor relations, and
maintenance of safe and healthy working conditions.
Barry Love, Director, Sales & Brokerage. Barry's education in the recycling
market has provided him with knowledge of overseas markets and mills which
January 18, 2000
-17 -
Taormina Industries, LL,c.
assist him in moving over 25,000 tons of material each month to over 50
different end users. Barry oversees a staff of commodity brokers to ensure the
highest return on the products sold worldwide and oversees all sales reporting
documentation for the State of California. He has extensive recyclable
materials marketing experience and has been responsible for the startup
operations of numerous major recycling projects throughout California. .
William C. "Bill" Taormina. Bill is the eldest son of the company founder.
Together with his brother, Vince, Bill have developed the Company throughout
the 80's and 90's into an innovative leader in recycling and automated
collection. Like the entire Taormina family, Bill has literally been raised in the
business and is extremely knowledgeable in all areas of operations and finance.
Vince Taormina. Vince is the youngest child of the company founder and
along with his brother, Bill developed the company. Like the entire Taormina
family, Vince has also been raised in the business and is extremely
knowledgeable in all areas of operations and finance.
Stuart Lee, Director, Material Recovery Facility & Transfer Operations.
Stuart was instrumental in the development of all waste characterizations used
by all cities in Orange County as required by AB939. He maintains the
quantitative methods necessary to manage our material recovery facility.
Stuart's major areas of management responsibilities are the transfer station and
the material recovery facility operations.
e) Financial Data
Included is the current Financial Statement of Republic Services, Inc., parent
of Taormina Industries, L.L.C. Taormina Industries can provide an audited
"Republic Services" financial statement. For several years, Taormina
Industries has not produced a stand alone audited statement. See attached blue
folder under Other Relevant Information for Annual Report.
January 18,2000
- 18-
Taormina Industries, LLc.
PROPOSED SERVICES
a) Refuse Collection
Single Family Dwelling Unit Refuse Collection
Taormina Industries will provide automated curbside collection using 96, 64 or
35-gallon carts in all areas of the City where automated service is operationally
feasible. (Article 4, Section 4.1.2 of the Franchise Agreement)
Taormina will purchase and provide the carts and be responsible for replacing
lost, stolen or damaged carts. However, the City will own the carts at the end
of the term of the Franchise Agreement, although the City reserves the right to
have Taormina remove the carts at the end of the contract term at no charge to
the City.
Multi-Family Dwelling Unit Refuse Collection- Automated Carl Service
Taormina will provide cart service to Multi-Family Dwelling Units where such
collection is operationally feasible and permitted by the City. Whether or not
road and parking conditions permit sufficient access for collection of carts, and
cart storage conditions at the properties shall determine feasibility. (Article 4,
Section 4.1.3 of the Franchise Agreement)
Commercial and Industrial Property Refuse Collection -Automated
Carl Service
Taormina Industries understands that some commercial and industrial
customers may request to receive automated cart service rather than bin
service. Taormina will provide one or more 96-gallon carts (or other
appropriate sizes) to each qualifying small volume commercial and industrial
customer for collection. (Article 4, Section 4.1.4 of the Franchise Agreement)
Multi-Family, Commercial and Industrial Property Refuse Collection
- Bin Service
Taormina will collect all refuse that has been placed in bins from all multi-
family, commercial and industrial customers within the City at least once every
week or more frequently, if required to handle the waste stream of the premises
where the bins are located. (Article 4, Section 4.1.5 of the Franchise
Agreement)
Taormina will also clean or replace all bins and industrial containers once per
year at no charge. Additional cleanings at the request of the customers or to
January 18. 2000
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Taormina Industries, L.L.C
prevent a nuisance caused by odors or vector harborage will be provided at an
added cost of$35 per cleaning.
Taormina has proposed monthly refuse rates for existing commercial and
multi-family account and bin distribution on Attachment 1 C. The rates include
bin size and frequency of collection as per Attachment 3. The annual refuse
bin revenue has been calculated by multiplying the proposed monthly refuse
rates by the estimated commercial and multi-family bin distribution and
multiplying by 12 months.
Manual Can Service
Taonnina will continue manual can service to single family, multi-family, and
commercial customers, where neither cart nor bin service is feasible. (Article
4, Section 4.1.6 of the Franchise Agreement) Taormina will service the
number of accountslunits as assumed to be the same as the current number of
commercial can customers. The actual distribution of customers that will have
cart service and those that will continue with manual can service is not known
at this time.
Temporary Bin and Roll-off Refuse Service
Taonnina will offer temporary bin and roll-off box service to all customers in
the City for the collection of refuse or construction and demolition waste.
(Article 4, Section 4.1.7 of the Franchise Agreement) For roll-off box service
Taonnina will charge on a "haul plus disposal" basis. The charges to
customers will be composed of
. A one-time delivery (or relocation) charge;
. A load charge for each time the box is taken to the disposal site; and,
. A disposal charge equal to the actual tonnage multiplied by the tipping fee
paid.
Taonnina proposes to charge a minimum load charge if the box is not emptied
within a certain time period, and/or an overweight charge for customers that
overload their roll-off boxes, and/or a separate load charge for hauling
compactors.
The number of roll-off loads and related tonnage in the City for the twelve
months ended June 30,1999 are shown in Attachment lD. Taonnina has
proposed rates for roll-off box service on Attachment 3. Annual revenue will
be calculated by multiplying the proposed roll-off load rate times the number
of roll-off loads plus disposal.
January 18, 2000
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Taormina Industries, LL,c.
Taonnina will charge a single charge per load for temporary bin service to
include the cost of collection and disposal. The rate for temporary bin service
will be $50 per pickup for a three-cubic yard bin.
City Facilities' Collection
Taonnina will collect and dispose of all solid waste generated at facilities
owned and/or operated by the City, billing the City according to approved
rates. (Article 4, Section 4.1.8 of the Franchise Agreement) The current
location of these public collection is described in Exhibit 2 of the Franchise
Agreement, although the City may change the number of containers and their
locations. Taonnina will provide recycling containers where feasible at City
facilities and provide collection of such recyclables at no charge to the City.
Taonnina will also provide a green waste roll-off box at the City yard at no
charge.
Abandoned Item Collection
Taonnina will collect abandoned items in the streets and alleys when notified
by the City and to provide, at no charge, a roll-off box at the City yard for
disposal of abandoned items colleéted by City crews. (Article 4, Section
4.1.10 of the Franchise Agreement)
b) Recyclables Collection
Taonnina will provide recycling collection service, and to process or
arrange for the processing of the collected materials, with the cost of
processing the collected materials to be factored into the proposed
service rates.
Single Family Dwelling Unit Recycling
Taonnina Industries will provide weekly curbside automated collection
of recyclables. Collection of recyclables will be on the same day as
refuse collection service. Taonnina will provide each single family
customer (3 dwelling units or less) with a single 64 or 96-gallon
recycling cart in which residents will place their commingled
recyclables. (Article 4, Section 4.2.1 of the Franchise Agreement)
Customers that regularly fill their recycling cart may receive an
additional recycling cart at no additional charge.
January IB, 2000
- 21 -
Taormina Industries, LL,c.
Taonnina understands it will provide the recycling cart to all single
family residential customers, there may be some customers who do not
have the space for the cart and may choose to return it.
Multi-Family Dwelling Unit Recycling
Taonnina will provide, at no additional charge, multi-family dwelling
unit recycling collection (commingled recyclables) to all multi-family
customers requesting it from Taonnina, regardless of the amount of
revenue generated through other charges to customers or received from
the sale ofrecyclables. (Article 4, Section 4.2.2 of the Franchise
Agreement) Customers must be notified in writing at least once
annually of the availability of recycling services.
Commercial Recycling
Taonnina will provide, at no additional charge, recyclables, collection
and processing service to all commercial customers requesting it from
Taonnina, regardless of the amount of revenue generated through
charges to customers or received from the sale of recyclables. (Article
4, Section 4.2.3 of the Franchise Agreement) Customers will be
notified in writing at least once annually of the availability of recycling
services.
Construction Waste Recycling
Taonnina will make reasonable efforts to prevent construction waste,
suitable for recycling, from being taken to the landfill by transporting it
to a facility where it will be processed for reuse. (Article 4, Section
4.2.4 of the Franchise Agreement)
Mixed Waste Recycling
Taonnina will transport all refuse from multi-family, commercial and
industrial customers that do not participate in separate recycling
collection programs to a MRF for mixed waste processing to recover
recyclables and yard waste. Taonnina will achieve a minimum
diversion rate of 15% from such mixed waste processing. (Article 4,
Section 4.2.5 of the Franchise Agreement)
January 18, 2000
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Taormina Industries, L.L.c.
c) Yard Waste Collection
Single Family Dwelling Unit Yard Waste Collection
Taonnina will provide weekly curbside collection of yard waste on the
same day as refuse collection from the City's single family customers.
Taonnina will provide each single family dwelling unit customer a
single 96-gallon yard waste cart, or a 64-gallon cart for space
constrained customers. Customers that regularly fill their yard waste
cart may receive an additional yard waste cart at no extra charge.
(Article 4, Section 4.3.1 of the Franchise Agreement) Taonnina will
collect an unlimited number of tied bundles of yard waste set out next
to the cart that meet the size restrictions of Section 4.3.1. However,
Taonnina is not expected to divert yard waste placed in plastic bags
outside the cart.
Taonnina understands it will provide the recycling cart to all single
family residential customers, there may be some customers who do not
have the space for the cart and may choose to retum it.
Commercial & Industrial and Multi-Family Dwelling Unit Yard
Waste Collection
Taonnina Industries will provide automated yard waste collection to
commercial, industrial and multi-family customers who request it at no
additional charge. Taonnina will be required to notify all of its
commercial and multi-family refuse customers of the availability yard
waste collection service at least once each year. (Article 4, Section
4.3.2 of the Franchise Agreement)
Christmas Tree Collection and Recycling
Taonnina Industries will annually collect and recycle all Christmas
trees disposed of by single family and multi-family customers. The
Christmas trees will be collected from curbside. Additionally,
Taonnina will collect from roll-off boxes placed by Taonnina
centralized drop-off sites as part of a separate two-day event. There
will be no separate charge for Christmas tree collection; it will be
included as part of the overall cost of service provided by Taonnina.
(Article 4, Section 4.3.3 of the Franchise Agreement)
End-Usesfor Yard Waste
Taonnina will provide end-uses for yard waste that maximizes
January J 8. 2000
-23-
Taormina Industries. LLc.
diversion credits for the City. (Article 4, Section 4.3.4 of the Franchise
Agreement)
Diversion Requirements
Taormina will achieve a minimum of 50% diversion through
transformation, recycling, yard waste collection, and mixed waste
processing. Transformation shall not exceed 10% of the total waste
stream. Refer to Article 4, Section 4.4 of the Franchise Agreement.
d) Special Services
On-Call Bulky Waste Pickup
Taormina will provide on-call bulky waste pickup service to single
family and multi-family residential customers. Customers will be
entitled to two pickups per calendar year, with a maximum ofthree
items per pickup, for no additional charge. Taormina may charge
$20.00 per pickup for bulky waste pickups that exceed the two pickup
maximum. Customers will provide Taormina with 48 hours notice and
the items will be collected on the customer's regular collection day.
(Article 4, Section 4.1.9)
Abandoned Item Collection
Taormina shall collect abandoned items in the streets and alleys, and
provide a roll-off box at the City yard for abandoned items collected by
City crews, as described in Article 4, Section 4.1.10.
City Sponsored Events
Taormina will provide solid waste and recycling collection service at
the annual City-sponsored events as shown in Table 4. This will
include providing containers to collect and dispose of all solid waste,
and providing containers to collect source-separated recyclables.
Taormina will provide these services at no additional cost to the City,
the ratepayers, or other event sponsors. (Article 4, Section 4.1.11)
Special Pickup for Automated Cart Customers
Automated customers may request up to two special pickups per
dwelling unit per year, at no additional charge, of up to one cubic yard
of refuse per pickup that exceeds the capacity of the customer's
automated refuse cart(s). Additional pickups in excess of two per
January 18, 2000
.24-
Taormina Industries, LL,c.
dwelling unit per year may be requested for an additional fee of $5.00
per pickup. (Article 4, Section 4.1.12)
Table 4 - Annual City S onsored Events
')
I) Tiller Days October 75,000 3 Days/14 hrs per day
2) Tree Lighting December 4,000 5 hour event
3) Community Yard Sale May 1,000 4 hour event
4) Street Fair/Chili Cook-Off June 12,000 10 hour event
5) Fourth of July Celebration July 22,000 6 hour event
e) Disposal, Transfer and Processinl!; Facilities
J
Landfills, County of Orange Landfills (per flow control agreement)
. Frank Bowennan Landfill
Olinda-Alpha Landfill
clo Orange County Integrated Waste Management
320 N. Flower, Suite 400
Santa Ana, CA 92703
Owned and operated by the County of Orange.
Pennitted Capacity: 8,500 & 8,000 tons per day, respectively
Tipping Fee: $22.00/ton
Transfer Station
. CVT (Consolidated Volume Transporters)
lI31 N. Blue Gum Street
Anaheim, CA 92806
Owned & operated by Taonnina Industries.
Pennitted Capacity: 6,000 tons per day
Average Tons per day 4,100
Available Capacity 1,900 tons per day
1) Operatiol!; & Administative Offices
.~
Corporate Office
Taonnina Industries, L.L.C.
1131 N. Blue Gum Street
Anaheim, CA 92806
Mailing Address: PO Box 309
Anaheim, CA 92815
January i8, 2000
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Taormina industries. L.L.c.
2) Implementation Plan
One of the most important elements of implementing a new collection
system within the City of Tustin is the "Implementation Plan". The
emptying of the first container will be the culmination of a detailed
plan which will include public education, outreach, and installation of
new equipment serviced by highly trained and experienced personnel,
which eliminates the risk of customer service related concerns.
Taormina Industries has had unparalleled, yet controlled growth in the
areas of residential, commercial and industrial solid waste collection
and processing. As a function of this growth, the ability to transition
customers from one service provider to another or from one type of
collection to another (i.e., manual residential collection to automated
collection) has become a fundamental task at which we excel.
Taormina Industries' experience in successfully educating and
implementing automated refuse collection and recycling programs
within a new community includes two phases; a residential phase and
a commercial phase, both to be implemented jointly. Taormina
Industries understands the diverse needs of residents and commercial
businesses and always tailors each phase to best reach the targeted
audiences.
Upon being chosen as the provider for the solid waste services for the
City of Tustin, Taormina Industries will meet with appropriate City
Staff and current provider of solid waste services to prepare a specific
detailed time schedule that will meet the requirements of Table 5.
This will include the following requirements:
Residential Implementation Plan Components
1. Initial Letter
2. "Recycle Tustin" Brochure & Notice of Public "Town Hall"
Meetings
Local Media Coverage
Conduct Public "Town Hall" Meetings
Container Delivery w/Information Packet Hanger
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3.
4.
5.
January 18, 2000
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Taormina Industries, LLc.
L
Preliminary Time Line
Specific Time Line to be mutually agreed upon by the City of Tustin
and Taonnina Industries.
RESIDENTIAL MILESTONES
\."
START FINISH
TASK NAME DURATION DATE DATE
Execute Contract 1 day
Meet with City Staff & Current Hauler to 7 days 3/1/00 3/9/00
Finalize Transition plan
Obtain Residential Database from City 7 days 3/1/00 3/9/00
Prepare & Mail Out Initial Letter to 15 days 3/15/00 4/4/00
Residents
Exercise Purchase Option on Trucks and 1 day 3/1/00 3/1/00
Containers
Assume Control of Existing Collection I day 7/1/00 7/1/00
Operations
Prepare & Mail Service Brochure & 15 days 7/24/00 8/11/00
Town Hall Meeting Notices
Conduct Community & Media Outreach 21 days 8/1/00 8/29/00
Conduct Town Hall Meetings 10 days 8/15/00 8/28/00
Finalize Collection Day & Routing 10 days 8/28/00 9/8/00
Working With City Staff for Final
Approval
Prepare & Mail Collection Start-up & 21 days 8/28/00 9/25/00
Deliver Infonnation
Deliver Containers & Infonnation 40 days 10/2/00 11/24/00
Packets
Begin New Automated Route Collections 1 day 11/20/00 11/20/00
Provide Old Container Collection 14 days 11/13/00 11/30/00
Provide Additional Route Supervision 21 days 11/20/00 12/18/00
Commercial Implementation Plan
Due to the varying individual types of collection for each
establishment, a more direct one-on-one approach is required for
educating commercial businesses. A Public Education and Awareness
plan for Tustin's commercial businesses will include physical site
assessment evaluations, personal field visits, presentations to the
Chamber of Commerce and interested local civic organizations
(Rotary Club, Lions Club, etc.) and a direct mail piece. The Public
Education and Awareness Plan for commercial businesses will consist
of the following:
'-'
January 18, 2000
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Taormina Industries, LLG.
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Commercial Implementation Plan Components
I. Commercial Customer Service Audits
2. Commercial Database
3. Commercial Services Brochure
4. Letter to Chamber of Commerce and Selected Organizations
5. Customer Field Visits
Preliminary Time Line
Specific Time Line to be mutually agreed upon by the City of Tustin
and Taormina Industries.
COMMERCIAL MILESTONES
START FINISH
TASK NAME DURATIO'l' DATE DATE
Execute Contract I day
Meet with City Staff & Current Hauler 7 days 3/1/00 3/9/00
to Finalize Transition Plan
Prepare & Mail Introduction Letter & 21 days 3/10/00 4/7/00
Commercial Services Brochure
Establish Field Contacts of all 21 days 5/22/00 6/19/00
Commercial Customers. Review
Service Options and Sign Service
Agreements
Begin Commercial Route Collection 1 day 7/1/00 7/1/00
Begin Orderly Exchange of Containers 45 days 7/3/00 9/1/00
h) Customer Service and BilIin~
Introduction
Excellent customer service is Taonnina's number one priority. We take pride
in our Customer Service Department and the quality, efficiency and
experience of our customer service representatives (CSRs). Maintaining the
highest level of customer satisfaction has been the cornerstone of our success.
Through many years in business, our customer service systems and
procedures have grown to achieve the needs and desires of our customers.
January 18, 2000
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Taormina Industries. L.L.c.
L
Basic Customer Service Principles
. Ensuring easy and immediate access for customers and the
City
. Ensuring timely and efficient complaint resolution and
follow-up
. The customer is always right! '
v
Customer Service During The Transition
Taormina Industries is known for its well organized and systematic
planning and implementation of new contacts with particular emphasis on a
high degree of communication between Taormina, the City and the City's
residential customers prior to, during and after the startup of a new
contract. With every new contract, Taormina prepares a comprehensive
program plan that details the duties and responsibilities among the various
key employees. Our transition plan in the areas of customer service, public
information and educational outreach commence upon the date of
execution of our contract and extend well beyond the date of
commencement of service.
Prior to program implementation, we undertake extensive training and
cross-training of all CSRs and dispatch personnel. The customer service
training also involves our drivers, supervisors, billing clerks, MIS
personnel and general department heads that may have communication
with customers or the City. Our Implementation Plan identifies the regular
Taormina staff meeting dates that will be held prior to the start-up of
service. However, due to the importance of the customer service function,
ongoing meetings, in-between these regular staff meetings, will take place
with our Customer Service Department and upper management to ensure
that these important team members have a comprehensive understanding of
all aspects of the program.
Customer Billing
Taormina has the infrastructure and billing system for direct billing,
according to the terms of the Agreement, to any type of residential or
commercial customer. Our bills are easy to understand and contain
....)
January 18. 2000
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Taormina Industries. L.L.c.
\...-
self-addressed envelopes for payment. All billing will be done in
accordance with Article 5.1 of the Agreement.
\wi
Procedures For Dealing With Customer Requests And Inquiries
When calls are received at Taonnina's main office, nature of the inquiry is
detennined by the Receptionist and transferred to the appropriate Customer
Service Representative.
Upon receiving the call, the CSR immediately accesses the customer
account infonnation (Note: May be quickly accessed by name, address,
account number or telephone number). As the customer explains their
need, the CSR views the customer file, including infonnation regarding
service and billing address, pick-up day, rate per month, balances due,
billing history, and a variety of infonnation including a complete history of
that customer's service requests and the corresponding resolution. After
ascertaining the customer's need, the CSR inputs this infonnation into the
customer's pennanent file history.
After printing the work order for a customer inquiry, the CSR dispatches,
by radio, specific infonnation regarding the call and the required time for
resolution to the Route Supervisor. This infonnation is maintained in a
"Open Work Order file" until the Route Supervisor and/or driver
communicates back to the CSR that the work order has been completed.
Note: All of Taonnina's vehicles are equipped with brooms, shovels and
other cleaning materials to handle spills and/or litter). Ifnecessary, a
follow-up call is made to the customer to ensure satisfaction. At this point,
the order is closed...job complete.
At the end of each day, the Customer Service Manager prints a summary
report of all customer calls. The report includes name and account number,
service location, nature of call (i.e. missed pick-up, etc.), time of call and
time and the resolution. This infonnation is sorted by route supervisor area
and distributed to the Route Supervisor for "sign-off'. It also serves as a
mechanism to monitor the perfonnance and follow-up of each route
supervisor and driver. In the remote instance where a work order remains
open at the end of a particular day, this infonnation, by definition, will be
referenced on the report because the time of resolution will be left open.
-...J
January 18, 2000
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Taormina Industries. L.L.c.
L
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i) Hazardous Waste Management
In order to proactively respond to any release or threatened release of any
hazardous material likely to be within our control or on our premises, we
have established three operating priorities:
I. Prevention (Prevent the hazard) -- Personnel (drivers,
operators and load inspector) are trained to identify, report,
reject or handle hazardous materials fonn the waste stream.
(See attachment in yellow folder under Other Relevant
Infonnation.)
2. Mitigation (Reduce the hazard) -- Personnel are trained to
lessen the hann or damage that any hazardous material incident
can cause by preventing any incident from getting worse or
spreading. Safe containment of any release is paramount.
3. Abatement (Remove the hazard) -- Once contained, hazardous
materials response teams, contractors, etc. are summoned to
detennine degree of hazard and clean-up procedures. Wastes
are then cleaned up, categorized, labeled and hauled away or
disposed of by appropriately licensed personnel compliant with
city, county, state and federal requirements.
j) Public Education
Taonnina Industries has the staff available to develop and implement a
wide range of public infonnation for the citizens of Tustin. Infonnation
contained in the attached white folder under Other Relevant Infonnation
reflects the various types of transitional infonnation we have distributed in
the past for other cities served by Taonnina Industries. This transitional
infonnation can be tailored for the City of Tustin and it's specific needs.
Taonnina Industries will comply with Article 5, Section 5.3 of the
Franchise Agreement.
January 18, 2000
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Taormina Industries, L.L.C
WASTE MANAGEMENT BID
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,. . ~, ,~J>', ""'" ""J'i"\,
._~ 'h~l
WASTE MANAGEMENT
aeongc County D¡",kt
1seo South U",nd A"enue
Santa ,\nd. C\ 92ì05
(714) 480.2300
(7141568.6626 fax
Me. Tim Serlet
Director of Public Works
Public Works Department
City of Tustin
300 Centennial Way
Tusin, CA 92780
Dear Tim:
Waste Management of Orange County is pleased to submit this proposal for Integrated
Waste Management Services for the City of Tustin. You will fmd it to meet all of the
specifications in your request for bids and also. includes our proposal to continue to
service the residential community in the city on the existing Thursday and Friday service
days.
~.
If you have any questions or would like any clarifications on any of the information we
have submitted, please call me at your earliest convenience.
Æ~~$
Division President
A DiviSHm "tWaste Management CuUcet¡"n and ReqTimg, lnc.
(Ð
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RESPONSE TO REQUEST FOR BIDS
Cii)' of Tustin
Integrated Solid Waste
Management Services
í
Submitted by
WASTE MANAGEMENT ORANGE COUNTY
January 18, 2000
(~
This bid is printed on recycled paper, 20% Recycled - 70% Post Consumer Woste - Acid Free
(i)
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TABLE OF CONTENTS AND COMPLETED ATTACHMENTS
A.
GENERAL REQUIREMENTS
Transmittal Letter
Anti-collusion affidavit (Attachment 5)
Notary certificate
Responsible Bidder Requirements fonn (Attachment 6)
Copy of Cart Manufacturer's Warranty
Manufacturer's Certification of Cart Confonnance (Attachment 7)
Executed signature page ITom Franchise Agreement (Attachment 9)
A-1
A-2
A-3
A-4
A-9
A-10
A-11
B.
PROPOSED RATES
B-1
Proposed Rates (Attachment 3)
C.
SUPPORTING COST AND OPERATING DATA WORKSHEETS
C-2
D.
Supporting Costs and Opèrating Data (Attachment 4)
PROPOSED OVERVIEW
r
1.
11,
Ill.
N.
V.
VI.
Business Structure
Description of bidder's experience
D-1
D-2
D-14
D-15
D-15
D-24
w
New Service Initiation Experience
1nfonnation regarding past and pending litigation
Key Personnel
Financial Infonnation
1.
PROPOSED SERVICES
Refuse Collection
E-1
E-1
E-1
E.
11.
a.
Single Family Dwelling Unit Refuse Collection
Multi-Family Dwelling Unit Refuse Collection - Cart Service
Commercial and Industrial Property Refuse
Collection - Automated Cart Service
Multi-Family, Commercial and Industrial Property
Refuse Collection - Bin Service
E-2
E-2
E-3
E-3
E-3
E-4
E-4
E-4
b.
c.
E-2
d,
e.
Manual Can Service
Temporary Bin and RolloffRefuse Services
City Facilities' Collection
Abandoned Item Collection
f.
g.
h.
Recyclables Collection
a., Single Family Dwelling Unit Recycling
b. Multi-Family Dwelling Unit Recycling
RLlPO,\,\E TO IŒQI LST I Oil /lms. nSII\, CIUFORMI
r
III.
N.
V.
VI.
VII.
VIII.
IX.
X.
F.
Exhibits
1.
2.
c.
Commeréial Recycling
E-4
E-S
E-S
E-5
d, Construction Waste Recycling
e. Mixed Waste Recycling
Yard waste collection
a.
Singl~ Family Dwelling Unit Yard Waste Collection
Commercial & Industrial and Multi-Family5
Dwelling Unit Yard Waste Collection
Christmas Tree Recycling
End-Uses for Yard Waste
E-5
E-6
E-6
E-6
E-6
E-7
E-7
E.7
E-7
E-7
E.7
E-6
E-8
E-8
E.9
E-10
E-11
E-12
E-13
E-13
E-15
E-16
E-19
w.
E-S
b.
c.
d.
e.
Diversion Requirements
f. Summary of Proposed Services
Special services
a.
On-Call Bulky Item Pickup
Abandoned Item Collection
City Sponsored Events
Special Pickup for Automated Cart Customers '
b.
c.
d,
e.
Fees
Disposal, transfer and processing facilities
a. TransferlDisposal
b. Recycling Processing
c. Green Waste 'Processing
Operating facilities
Implementation plan ,
a.
Residential Program Implementation
b. Commercial Program Implementation
c. Summary ofImplementation
Customer Service and Billing
Hazardous Waste Management
Public Education
Legal
Public Education Examples
F-1
F-5
RLSI'O'v.\L 10 RLQiLSJiDi? Bms . II STl\ CIULOR\LI
ATTACHMENTS
r
ANTI-COLLUSION AFFIDAVIT AND NOTARY'S CERTIFICATION
Bidder as a part ofthis bid submits the following affidavit:
The undersigned deponent, of lawful age, being duly sworn, upon his oath deposes and says:
That he has lawful authority to execute the within and foregoing bid; that he has executed the
same by subscribing his name hereto under oath for and on behalf of said bidder; that bidder has
not directly or indirectly entered into any agreement, express or implied, wÍìh any bidder or
bidders, having for its object the controlling of the price or amount of such bid or bids, the
limiting of the bids or bidders, the parceling or farming out to any bidder or bidders or other
persons of any part of the contract or any part of the subject matter of the bid or bids or of the
profits thereof, and that he has not and will not divulge the sealed bid to any person whomsoever,
except those haviñg a partnership or other financial interest with him in said bid or bids, until
after the said sealed bid or bids are opened.
Deponent further states that the bidder has not ,been a party to, any collusion among bidders in
restraint of freedom 9f competition; by agreement to make a bid at a fixed price or to refrain
from submitting a bid; or with any City official or employee as to quantity, quality, or price in
the prospective contract; or in any discussions between bidders and any City official concerning
exchange of money or other things of value for special consideration in the letting of a contract;
that the bidder has not paid, given or donated or agreed to pay, give or donate to any official,
officer or employee of the City directly or indirectly, in the procuring of the award of contract
pursuant to this bid. '
¡--
Executed under penalty of perjury on this
5/1;;111 ~~ (l/Î .
/ :J-,J/ day of
j /lAJiJ¿¡ ï? 'I
, B¿;oi) at
SIGNED
BY
;f~t:~{;
':t J 1J I ç I o~) ~€~ \'be,JT
TITLE
My Commission expires:
.::.JON£'
/7 17-1 day of .:Tfi-N tJ J1-I<- Ý , .;}.(xJ CJ , at
Û¡;t~Ä j!tdfi
Notary Public
Ie. . ;:;'000
I
Subscribed and sworn to before me this
, óffNiß M ff-. è4-
I
Failure to complete and submit this form will deem the proposer's bid non-responsive.
December 7, 1999
5-1
City of Tustin
--
,-
CALIFORNIA ALL.PURPOSE ACKNOWLEDGMENT
:~"",-.ç,: = ,;<2 -<X.ç ,,&"-== = == æ =""'- .ç<',,<X""'- ,ç£,Ç!' .&'3,Ç<',¿t .e&<'.Æi'= &<: ==== == == = = æ&!'.=.ç,:=.Q.1i,
§¡ State of California } ~""'.. .
County of ð¡¿I1-N~{; ss, ~
~ ~
On ð~/;7/çO , before me, (J/¡(¡f.,rýl, J(;rJD/6y" r/or~ý fUØLJL ~
N,me "dT;t'eofOffic" ,e,g., 'J"eOoo. No,""P,blic") "
g personally appeared R Oße7Z-r ,T QéJ If L/::;- , ~
~ _cl- - §
~ersonally known to me
~i'.,','..,' ;Vi~~~~:d to me on the basis of satisfactory !,~,~~..
¡-8--'=---CHFiTšTŸTKIÑõïG-¡ b
2! ,,' COMM.1I1101713::;: to be the person(s) whose name(s) is/are
~ ' NOTARYPUBUC.CAUFORN1A s: subscribed to the within instrument and I
;> ORANGE COUNTY:;5 acknowledged to me that he/she/they executed
;q1..",..,.I' ',__~~m~~~~~i'!5,},:n!!!ì:..2~__; the same in his/her/their authorized ~þ;~'~.':.'.
~ capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s). or
the entity upon behalf of which the person(s)
acted, executed the instrument
I I
! ",- '00 .,~~ ~,,- . "" ~""., " Co, , m" - ","", ro ~"m ",m, 00 ~ ~, I
I o",",,;o=:~;~::.;,:~:=:'... -" ~_._-" ~
~ Title or Type of Document í/- IJL-LIJ~N 1/-F¡::/l:;:II-tJ/¡ /f-ND !'IIJTMt/'S ~
~ Document Date: O/¡,¡/}}:;r;J r;¡C-A-7í () Number of Pages: / ~
~ I I , B
'.¡ Signer(s) Other Than Named Above: ;JON ¿ , ~
;i:~:r~~t~~::) cla~D~bmer:T Co Ý L¿ , ~
'... ,~' ~~;~~r~~~officer-Title(S): ])f5!¡¿¡C-r 1J1f}fJf}-6.t7î/ TOP~fth'mbhe" ~
~ Ù Partner -:- 0 Limited 0 General ~
~ 0 Attorney In Fact ~
~, [J Trustee' ~
~ 0 Guardian or Conservator ~
¡! 0 Other: g
~ Signer Is Representing (J/!fsíc mtJ/l7T. 01- c?~[ CttJIVTy ~
1== =-ðv~=-=-"IX 'C¡;=~= = 'ç,.-ç" =.. "'" =..=.. =.. ~ 'q;<x- 'Ç<- xx- "'" "'" "",-q;= j
@ 1997 N"ico,' No"" A"""tico . 9350 De Solo M', P.O. Bo< 2402 . C"",worth. CA 91313-2402
Peod No. 5907
Reoed" C,II Toll-Fe" 1-BOO-876-6827
r
ATTACHMENT 6
RESPONSIBLE BIDDER INFORMATION
In order to be eligible to bid for the City's Integrated Solid Waste Management Services
Agreement, potential bidders must provide all of the information described below. Please
check the appropriate response to each item below, and attach documentation to this form
supporting each response (e.g, names of agencies, population, dates of service, description of '
services provided, name of contact person at the agency and telephone number), and where,
the answer is "No", please provide detailed information about your experience providing the
service.
Requirement
1. The bidder has previously provided exclusive residential refuse
collection services to at least one public agency with a service area
population of at least 30,000 in the past ten years.
r
2. The bidder has previously provided exclusive commercial refuse
collection services to at least one public agency with a service area
population of at least 30,000 in the past ten years.
3. The bidder has previously provided fully automated residential
refuse collection services (either refuse, recycling or yardwaste) to
at least one city or county in the past ten years.
4. The bidder has previously provided yardwaste collection seI'\'ices
to at least one city or county in the past ten years.
5. The bidder has previously provided recycling collection services to
at least one city or county in the past ten years,
6. The bidder has previously initiated new exclusive residential and
commercial service in at least city or county as part of a transition
from a previous service provider,
ì,
The annùal revenues from the Tustin Contract (estimated at
approximately $5 million per year at current rates) will be less
than 33% of the bidder's existing annual revenue as reported for
its most recently completed fiscal year,
8. I have attached all supporting data required to explain the
re<;ponsc5 in this form,
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6.1
fu
No
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Page Á-4
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SUPPORT STATEMENT FOR ATTACHMENT 6
Requirement One:
City of Tusin
Contact:
Population:
Dates of Service:
Description of Service:
Joe Meyers (714) 573-3150
66,834
1970 to P~esent
exclusive residential refuse collection
service including on-call bulky item pickup,
Additional examples are provided in the Bidder's experience section of the RFB
(Santa Ana, Irvine, Lake Forest, Mission Viejo, Orange, La Habra, County
Unincorporated)
Request Two:
r
City of Tusin
Contact:
Population:
Dates of Service:
Description of Service:
w
Joe Meyers (714) 573-3150
66,834
1970 to Present
exclusive residential refuse collection
service with MRF processing for all
materials collected.
Additional examples are provided in the Bidder's experience section of the RFB.
(Santa Ana, Irvine, Lake Forest, Mission Viejo, Orange, La Habra, County
Unincorporated)
Request Three:
City of Santa Ana
Contact:
Population:
Dates of Service:
.r
Teri Cable (714) 647-5658
330,000
January I, 1997 to Present.
Page A-S
,-
Description of Service:
starting January 1, 1997, Waste
Management changed the 38.000 residential
customers from a manual mixed waste
processing collection program to an
automated, three card; refuse, recycling,
yard waste collection program, Those
homes were converted in a three month
period with very minimal disruption,
Additional examples are provided in the Bidder's experience section of the RFB.
(Laguna Bèach, Irvine, Lake Forest, La Habra County Unincorporated)
Request Four:
City of Santa Ana
Contact:
Population:
Dates of Service:
Description of Se.rvice:
Teri Cable (714) 647-5658
330,000
Jànuary I, 1997 to Present.
residential automated cart services for yard
waste collection
w
Additional examples are provided in the Bidder's experience section of the RFB.
(Irvine, Laguna Beach, Lake Forest, Orange, County Unincorporated)
Request Five:
City of Santa Ana
Contact:
Population:
Dates of Service:
Description of Service:
Teri Cable (714) 647-5658
330,000
January I, 1997 to Present.
residential automated cart service for single.
stream recycling collection,
Additional examples are provided in the Bidder's experience section of the RFB.
(Irvine, Laguna Beach, Lake Forest, Mission Viejo, Orange, La Habra, County
Unincorporated)
- Page Á-6
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Request Six:
City of Rodondo Beach
Contact:
Population:
Dates of Service:
John Emerson (310) 372-1171
60,000
October 1996 to Present.
Description of Service:
exclusive residential and commercial refuse
and recycling collection.
Request Seven:
As demonstrated by the financial information provided in the Business Overview
section of the response to the RFB,. the annual revenues from this contract will be
less than I % of Waste Management, Inc. ' s annual revenue,
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Page À-7
EXHIBIT A
FOLLOWING ARE DESCRIPTIONS OF SEVERAL SITUA nONS WHERE TIlE
WARRANTY DOES NOT APPLY BECAUSE OF IMPROPER USE, NEGLIGENCE, ETC.
THESE SITUATIONS ARE GIVEN AS EXAMPLES ONLY AND EXCLUSIONS FROM
WARRANTY COVERAGE ARE NOT LIMITED TO THESE SITUA nONS,
EXAMPLES OF NORMAL WEAR AND TEAR:
Scratches, cuts or scores horn any source.
Accumulation of dirt or any other similar substance.
NOimal deterioration of metal parts during services,
Normal discoloration due to atmospheric exposure or water conditions.
Appearance of rust on steel parts,
EXAMPLES OF NEGLIGENT OR ABUSIVE USE:
Exposure to heat which may result in burns, scorches, melting.
Exposure to chemicals such as solvents, petrochemicals, paints, or acids,
Major impacts such as being bit by a vehicle.
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Improper storage such as storage in stacks, on lids, near heat or chemicals, outside
uncovered without lid on, or in any ¡¡rea where damage may occur.
Improper handling such as dropping stacks off delivery trucks, dragging over rough
surfaces, stacking with wheels on, forcing through narrow openings, allowing packer
mechanism to hit cart during dumping cycle-
Improper handling by automatc;q arms such as any scratches, cuts, creases, scores, cmcks
or breaks hom a maladjusted or improper automated lift arm or semi-automated lift arm
or semi-automated dllI1)-per, inclu4illg squeezing lid with arm and dropping cart into
packer or possible wheel/axle <lama¡Je and including excessive lift speed including any
lift speed faster than six seconds for fulllift-dump-down cycle,
Failure to properly open or secure lids when emptying )r handling carts.
Improper use such as any use other than for storage, transport,. and dumping normal
single unit residential solid wastes, including such improper use as: .
Construction, industrial. landscaping, liquid storage/transport, bulk solids
storage/transport, recreational, commercial, food service and institutional
applications,
~
SCHEDULE B
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RESIDENTIAL REFUSE CART WARRANTY
Cascade Engineering, Inc, ("CE") warrants its residential refuse carts fiom functional failure due
to defects in plastic materials or faulty workmanship or insufficient resistance to weathering
while in normal use for a period of ten (10) years (120 months) fiom the date of shipment fiom
the manufacturing facility 10 any purchaser ("Shipment DAte"). Notwith~t3ndil\l the above, CE
shall provide purchaser with a spare parts supply of component parts, such as axles and wheels,
which fail; purchaser shall be responsible for the labor cost incurred to install those replacement
component parts and re.assemble the residential refuse cart.
For purposes of this warranty, "normal use" of a residential refuse cart is considered to be the
collection of residential solid wastes in conjunction with an approved semi-automated or fully-
automated mechanical lifting device. If a dumping device other than one approved by CE is to
be used for 5e1IÚ~automated or fully automated 1lumpÚlg, written approval of that brand.a¡ui
specific model of dumping device must be obtained fiom CE prior to use. Adjustments or
modifications may be required for approval. .
CE shall be promptly notified of any failures under warranty in order that such failures may be
inspected Residential refuse carts which fail shall be accumulated by Waste Management, Inc"
but no .accumulation of defective products shall exceed 20 residential refuse carts without
written notification to CE. W
Specifically excluded fiom this warranty are damages due to negligent or abusive use or normal
wear and tear, including but not limited to, those items listed on Schedule A attached. Also
specifically excluded are carts used as crew carts, dumped manually, or used for any purpose
other than residential solid waste and curb-side recyclables collection, Negligent, abusive, or
specifically excluded use of carts voids this wammty after such use, This warranty is also
voided upon the resale of the residential refuse carts by a purchaser that is not an affiliate of
Waste Management, Inc. .
THIS WARRANTY IS IN LŒU OF ANY OTHER WARRANTY, EXPRESSED OR IMPLŒD,
INCLUDING BUT NOT UMITED TO ANY IMPLŒD WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPoSE. IN NO EVENT
SHALL CE BE LIABLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES OR FOR
ANY DELAY IN PERFORMANCE UNDER THIS WARRANTY.
Warranty/ Non Prorated
pãgëÁ~9
ATTACHMENT 7
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MANUFACTURER'S CERTIFICATION OF CART CONFORMANCE
Following are the headings for the specific design specifications and performance
requirements for the automated carts to be obtained and used in the performance of the
Franchise Agreement. Review the Franchise Agreement section referenced (Attachment 9) and
check the space for "Yes" if the carts conform to the design specification or performance
requirement or "No" if the carts do not conform to the specification or requirement.
Cart Design Specifications
1. Capacity - Section 4.5,3,1.1
2, Cart Handles - Section 4.5,3,1.2
3. Cart Lid - Section 4.5.3,1.3
4, Foot-Hold - Section 4.5.3.1.4
5. Cart Colors - Section 4.5.3.1.5
6. Wheel Design and Axles Assembly - 4.5.3,1.6
7; Identification Markings - 4.5.3,1.7
8. Additional Parts - 4.5.3.1.8
9, Replacement Parts - 4.5.3.1.9
Cart Performance Requirements
1. Minimum Service Life - 4.5.3.2.1
2. Cart Load Capacity -'4.5.3.2.2
3. Cart Durability -.4.5.3.2,3
4. CheIIÛcal Resistant - 4.5.3.2.4
5. Stability and Maneuverability - 4.5.3,2.5
6. Lid Performance' - 4.5.3.2.6
7, Reparability - 4.5,3,2.7
Yes
T
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-7--
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No
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I have read the sections of the Franchisè Agreement referred to on the previous page and .checked
'whether or not the carts included in the Bid for the City of Tustin Integrated $olid Waste
Management Services conform to the design specifications and cart performance requirements
contained therein.
~\~
c:,(.{~ e ~l \I\.~ÆV\i\)t" ~L--
Name of Cart Manufacturer
Signature of Manufacturer's Representative
¡;Z(':.¡;I~ Ç~lt5 Mr.
Title
'r (rOO
Date
Pagè A-lÒ
13.6
Severability
r-
If any non-material provision of this Agreement is for any reason deemed to be invalid
and unenforceable, the invalidity or unenforceability of such provision shall no.t affect
any of the remaining provisions of this Agreement which shall be enforced as if such
invalid or unenforceable provision had not been contained herein.
13.í
Exhibits
Each of the Exhibits identified in this Agreement is attached hereto and incorporated
herein and made a part hereof by this reference,
13.8
Non-Waiver Provision
Failure of either party to exercise any of the remedies set forth herein within the time
periods provided for shall not constitute a waiver of any rights of that party with regard
to that failure to perform or subsequent failures to performing whether determined to
be a breach, excused performánce or unexcused defaults by the other party.
IN WITNESS WHEREOF, the City and the Company have executed this Agreement as of the
day and year first above written,
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CITY OF TUSTIN
("City")
ATTEST:
By
CITY CLERK
MA YOK CITY OF TUSTIN .
APPROVED AS TO FORM:
("COMPANY")
By: US Ii k) rtsTe ç; eíiJI ceSJ J¿c
Name: fl3e-;¡,-;- J. t?oy¡;e
Ti<1")!1':!,-,;j ?"ew~. /.
By ~ ¿;7 ~
/'
City Attorney
iÈ:BTts 7, 1!£8
-97-
CiydTtSh
Attachment 3
P,npnsed Ratcs
r
R,,'d.nri.1 M"Itl-F.mll. .nd "ommml.t ".""'.n".' ".n R.."
E,rim...d
Row Se~l.. Propo"" E.I,tinO Mnnthly Annu.' Billin..
Monthly R.te Se~lce Unl" Billin..
I Autom.ted C.... 1 12.25 8,773 1107,469.25 1 1,289,631
2 M.nu.t Can 1 ]225 737 1 9.02825 1 ]08,339
3 Total Cart/C.n Billin.. 1 ],397,970
"nmm",I.1 .nd M"m.F.mll. BIn Rst"
Row
Con"'in"
Sue
2 Cubi< Vud,
3 Cubic Va"',
4 Cubic V....,
6
140.00
230.00
235.00
"nmm",I.land M"ItI.Famll. BIn Di..,lb"tlon Matri.. N"mh" of 81n,
Row Con"'in" Pi<kup",.,Week Tota'
Sue I 2 3 4 5 6
7 2 Cubi< V..d, 84 20 9 1 2 116
8 3 Cubic Va"', 253 562 3'0 125 132 62 1.474
9 4 Cubi< Va"', 30 80 97 23 49 46 325
10 To"" 367 662 446 148 ]S2 110 ].915
Some. W".. M..a.emrot, Inc. The C,ty do" not "..me "'y "'pon"bthty focth. ,e,"""y of the ..poned "fonn,too"
Cnmmmlat .nd M"tri.F'mil. BIn Rillin.'
,'--
Row Con"'in" Pi<kup",.,Week To""
Sue t 2 3 4 ' S 6
11 2 Cubi< V...., 1 3.360 1 ,1.20015 720 I $ 'J 120 1 280 1 5,680
]2 3 Cuhi< V..d, 14,80] ,.D.180 39.'40 ]8,125 25,080 14,260 $ ]62,286
]] 4 Cubi< V"d, ],950 7.3rO [2]1; 3.565 9.555 ]0.810 $ ::~
14 Tots' Monthly BIlling, 5 20,]11 $ 59.W," 52.m I' 2].690 I ! 34';55 ' 25,35" 2'3,3)]
15 Toto' Aonu.t Blllln.. ! 241,526 $ 709,,"'" 6"'.'20' 260,280' 417.060 $ '04.200 $ '.559,96'.
l
RolI.f)1T B.. B,]hn.,
Row D..cripriou Billlno U~h Uni" p" P"'pn"d E,tim.ted
Yes, R.te Annu.1 Billln..
]6 P"II Ch.",e 'ofP,,", 3,002 $ 150.00 S 450,300
17 Di'pn"""roce,,ing Ch.",. # ofTon, 13.407 $ 22.00 $ 294,954
18 To"" RolI.Off B.. Billl... , 745,254
S"mm.~ofP,"I,",dAnm;.I81l11n.'
19
20
21
22
R"ideoti'l. M"lti.Fsmily. Comm",i.1 C.rtlM....1 C.. Bi'hng'
Commeeci,1 ,nd M"hi.Fsmily Bin See"ice Billin"
RolI.OITB.. Billing,
Tot,1 Proj"..d Ann"" Billin"
S~cI.tSm"..
Rnw D..criprion' Rat,
2J Temp""" Bin Se~ices' Pee P"II, pi", $5 pee d" ovee 7 d." S 50.00
24 Lockin, Bin. Cost pee bi" P" 000"," , 5.00
25 "00 Ct,..i", (I" mess of 0"' bind"ni", pee yes,). E,,". , ".00
26 Addition,' B"lk, W.st, P~k"p (in mess on pee y"')' E,," 5 20.00
27 Additi",) Special Pick"p f" A"'mnSt,d Con C"stomee' (i" mess of2 pee,'M1' E"h $ 5.00
. "'..."nitestim.",willbe""df"p"",osesofcskul"in,"""vo"~o"d
dot,nninin, the pmpo"" ovee,1I cost. It "...mes thSt ,11 ,in,]e fsmil" d"p"', sod
"ipl""ni"wi.¡¡""lvo"'tom."dcsn,,~,ce
Fa;I,," to 'ompte" and ,uhmit tho ¡"m wilt d"m the pro po",', h," non.",pon'i",
IJ"",h,,-.1999
3,1
en"'¡""'.!m
Row
1
2
3
4
5
6
7
T",ck Operating Costs (aJ
Pmcessing Costs
Atht 1nt 4
Supporting Costs and Operating Data
Projected Revenue Requirement for the First Twelve Months of the Franchise Agreement
')
Automated
Manual
Can
Refuse
-S...MF
Roll-Off Box I Bulky Item
Sen-lee Pickup and
Other
TOTAL
ANNUAL
REVENUE
Bin Service
Refuse
Recycling
V"d Waste
Refuse
Reeyc1iug
Disposal Costs
Container Costs
Geneml. Administmtive and Pmfit
F..nchisc Fcc
8
9
10
11
Oth"
TOTAL RE\'ENl'E REQl'lREMENT
Tons Collected
Revenue per Ton Collected
Tons Diverted
$2}5,16.0.~.23~,16~ .~mm 1..26,45? ..~.....6~,~~.~. ..~.
..m.... .mO. .1.~~,?~3.... ...1..1?,7()0... ..,............1~,~~~.$
2l3,~~0 .15,.!7~.$.,
65,9°9. . 65.,.99.°.. ....35,2~~ m.m.. $
17.546 17.546 l7,546 m4,~2~.
.... .3?~.,.2.5.0m.~m?~.2,~0?..~.m~~~O~OJ..~....m........~22~.,
5~O,518 .L.}9~,~7?
.....5~7.,.6.~O...~m.......m. m.??~,9,?~..
..m..69J~O... ..m3~,~OO. --4.7,7~O
mI95,100m.1~1,390 ..~?,450
....3.~.,.!.~? ...........17.082 .....1..4.,2~~.
..~...!:.~~.3??
.......1"~~.8:OZ~
4..10~1-._1,Q9.5,828.
..._}18,40~
463,000
.....-................\..............---..-.-
....~5,49.¡¡
$
532,006 $
9.700
54.85 $
422,339 $
4,900
86.19 $
4.900
~0,740 I $
25,800
67.47 I $
6.450
871.158 S
18,700
46.59 $
18,000
$
(aJ 1nclud~s Pdver/He1perlSupmisor W.ages and Benefits, Vehicle Depreciation and Maintenance, Vehicle 1nsumnce and Other Route Costs.
l'!umberofRotltes
Row Route T¡-pe
12 Numb.. of Routes per Day'
13 Automated Can Routes
14 - Refuse Routes
1, . Rec¡-cling Routes
16 . y",d Waste Routes
17 MaI1ual Can Refuse Rtlutes
18 Bitl Routes
19 . Ref""
20 . Recrcling
21 Roll,OffBo'
122 1...ISF&MfB"lk)1tempith"p""10th"
~aIRo"tes
. For Exampl,,8, 9",10 ho"rs p"ù'y
Decemb" ~, /999
Mo"
Tues
Wed
Roules Per Day
Thu" I Fri
Sat
~¡5
___2-L
2~L_22
728,478 I S
13,407
5434 I $
Sun
12,898 S 4.703,190
185 79,029
69.72 S 59.51
34,950
Total
Hours p"
Route per
Day'
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I
Fail"" I" C"ml,..te ."d ",b...lt this 1"r... will .I"',,, the 1""'1""""s bid ""tI "'1",n,;\('.
4.1
City ~/T"s:in
(
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I.
BUSINESS STRUCTURE
The entity making this proposal is USA Waste of California, Inc. d/b/a Waste
Management of Orange County, a Delaware corporation ("Waste Management").
This corporation was formed in 1994; and became authorized to do business in
California in October 1996. USA Waste of California, Inc. is a wholly owned
subsidiary of Waste Management of North America, Inc., which owns 100
percent of its outstanding shares. The names of the officers of USA Waste of
California, Inc. are provided below. There is no creditor, who is owed debt greater
than 10 percent of the total assets of USA Waste of California, Inc.
California
Western Area - Slate of Officers
Douglas G. Sobey
(vacant)
President
Executive Vice President and Chie(
Financial Officer
Vice President, Secretary, and Sole Director
Vice President, Chief Accounting Officer
and Assistant Secretary
Vice President and Treasurer
Vice President
Vice President
Vice President
Vice President
Vice President
Vice President and Assistant Treasurer
Vice President and Assistant Secretary
Vice President and Assistant Treasurer
Vice President and Assistant Treasurer
Assistant Treasurer
Bryan J. Blankfield
Bruce E. Snyder
r
Ronald H. Jones
Raymond P. Burke
James Teter
E. Richard Acuna
Robert W. Angell
Nick J. Sikich
Ronald Law
Duane C. Woods
Robert G. Simpson
Jeffrey A. Draper
Lee A. McCormick
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PROPOSER
Overview
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RLIPOVSEiOIŒfjUlèsr¡'ORJJIDS rUSHN C4UFORM,1
Page D-I
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II.
BIDDER'S EXPERIENCE -" A NATIONAL COMPANY WITH
A LOCAL PRESENCE"
. Waste Management of Orange County has provided solid waste and recycling
collection services in Orange County for over thirty-five years. Waste
Management, operating as Great Western Reclamation, is the current service
provider for the City of Tustin. Waste Management has been Tustin's solid waste
service provider for over thirty years.
. WMOC is the area's recycling leader, providing recycling collection services to
more than 170,000 residential customers in Orange County. In addition to serving
residential communities, WMOC serves more than 15,000 local businesses.
In Orange County, Waste Management is also the ftanchised solid \¥aste service
provider for the Cities of Santa Ana, Orange, Irvine, Lake Forest, Laguna Beach,
La Habra, Rancho Santa Margarita and Mission Viejo. Waste Management also
provides waste and recycling services to 60% of the County unincorporated areas
ftom Tustin to Coto de Caza. Waste Management is a non-exclusive hauler in
Costa Mesa and Newport Beach.
In Los Angeles County, Waste Management is the solid waste service provider
for the Cities of Arcadia, Baldwin Park, Bell, Bell Gardens, Carson, Compton,
Cudahy, Diamond Bar, El Monte, El Segundo, Huntington Park, Gardena,
Inglewood, Irwindale, Lancaster, Long Beach, Lynwood, Manhattan Beach,
Monrovia, Monterey Park, Palmdale, Pasadena, Pomona, Rancho Palos Verdes,
Redondo Beach, Rolling Hills, San Dimas, San Fernando, Santa Clarita, Sante Fe
Springs, Santa Monica, Sierra Madre, South Gate, Torrance, Vernon, Walnut,
Whittier, and the County of Los Angeles.
w
Besides being an experienced local service provider, Waste Management of
Orange County is able to draw on the resources of Waste Management, Inc. With
over 313 landfills, 961 collection operations and 339 transfer stations, Waste
Management provides a full range of non-hazardous waste services to over 20
million customers coast to coast.
Operating through seventy California divisions, Waste Management provides
solid waste collection services to 356 communities throughout California. In
1998, Waste Management's California' districts provided curbside recycling
service to 2 million single-family households and to more than 440,000 multi-
family units.
In Califbrnia, Waste Management operates more than 150 special yard waste
collection and recycling programs. These programs have collected yard waste
ftom 825,000 homes.
RI;S/,ONSE JO REQliESTFOR BWS TUsnv. CALIFORNIA
Page D-2
r
Waste Management collected and recycled 426,000 gallons of used motor oil
through curbside programs. This represents about half of all the used oil collected
statewide at the curb.
Waste Management has become California's largest collector of recyclable
material from the residential sector.
In 1996, Waste Management converted over 38,000 single family residences in
Santa Ana from a dirty MRF collection program to an automated, three cart,
source separated collection program. Residential diversion was increased by over
40%.
In 1999, Waste Management converted more than 77,000 homes from manual
collection to automated three cart and source separated collection programs in
Irvine, Laguna Beach and the Unincorporated County of Orange. We are very
experienced with the challenges associated with a collection change as proposed
in the City ofTustin.
Waste Management is proud of its public/private partnerships. Waste
Management has helped secure used oil and recycling grants for the cities of
Santa Ana, Lake Forest and Irvine.
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~
Waste Management knows what it takes to be a strong community partner.
Whether it is supplying bins for community clean-ups for Santa Ana
Neighborhood Association groups, portable restrooms for the Tustin School
District Dino Dash, or bringing our recycling robot to schools, we understand the
importance of giving back to the communities we serve. We have included our
community involvement under each of our references.
Public Agencies In Orange County currently served and local
references.
The municipal profiles that are presented in the following section detail relevant
experience in the areas of solid waste collection, recycling and other applicable
services. They provide an overview of the services offered to six of our public
agency clients within Orange County, as well as contacts for each of the
representative programs. We encourage you to speak with our
clients about the quality of services and our commitment to the
còmmunities we serve. Along with these profiles, we included a
comprehensive list of California communities currently served
by Waste Management (USA Waste Services) divisions at the
end of this section.
R/CSPONSE!(} IIEQUS¡fOR ßms .. TUSIiN. CALIFORNIA
Page D-3
CITY OF IRVINE
Contact:
Mike Byrne
(949) 724-6357
One Civic Center Drive
Irvine, CA 92713
Curbside Residential: Automated collection with variable cart sizes of 35, 64 or
96 gallons. Single stream recycling in 35, 64 or 96 gallon carts; materials include
mixed paper, newspaper, cardboard, phone books, plastics, HDPE and PET, glass,
aluminum and tin; green waste in 64 or 96 gallon carts. We also provide bulky
item pick upÍlnd Christmas tree collection and recycling.
Commercial: Commercial service in containers ranging from 1.5 to'4 cubic yards,
seven days per week. Source segregated recycling offered to qualified
commercial accounts at a reduced rate. Recycling bins also provided at multi-
family dwellings.
w
Community Involvement: The division has been a strong community partner; we
have provided financial and in-kind support to the following organizations: Irvine
Chamber of Commerce, Irvine School Olympics, Barclay Theatre, Irvine Senior
Center, Race for the Cure, Irvine Harvest Festival, 25th Anniversary Celebration,
Exchange Club, Aids Walk, and the Relay for Life, just to name a few.
Residential Households:
28,500
Commercial Customers:
2,100
Tons Collected:
180,000
Diversion Rate:
47%
Page D-4
RESPONSE 70 REQUES7FOR Ems.. TUS7I.\ CALIFORNIA
CITY OF LAGUNA BEACH
Contact:
Jamie Pendleton
(949) 497-0344
505 Forest Ave.
Laguna Beach, CA 92651
Curbside Residential: Automated collection with variable cart sizes of 35, 64 or
96 gallons. Single stream recycling in 35, 64 or 96 gallon carts; materials include
mixed paper, newspaper, cardboard, phone books, plastics, HDPE and PET, glass,
aluminum and tin; green waste in 64 or 96 gallon carts. On call curbside bulky
item pick-up and Christmas tree collection and recycling are also provided.
Commercial: Commercial service in containers ranging ftom 1.5 to 4 cubic yards,
seven days per week. In certain areas, for example, small businesses in
downtown Laguna Beach, are provided commercial refuse collection in 96-gallon
. carts. Source separated recycling is offered to all commercial customers at no
additional charge. Sixty-five gallon commingled automated recycling carts or 3
cubic yard bins are available for commercial recycling.
w.
Community Involvement: The Division has provided fmancial and in-kind
support to the Laguna Beach Chamber of Commerce, Patriot Days Parade,
Beautification Committee, Laguna Beach School District, and Concerts in the
Park, just to name a few.
Residential Households:
9,800
Commercial Customers:
600
Annual Tons Collected:
36,000
Diversion Rate:
20%
R¡';,POSSE m REQUEST FOR IIms TUS1JN. CALIfORMA
Page D-5
r-
CITY OF SANTA ANA
Contact:
Teri Cable
(714) 647-5658
20 Civic Center Plaza
. Santa Ana, CA 92701
Curbside Residential: Automated collection with variable cart sizes of 35, 64 or
96 gallons. Single stream recycling in 35, 64 or 96 gallon carts; materials include
mixed paper, newspaper, cardboard, phone books, plastics, HOPE and PET, glass,
aluminum and tin; green waste in 64 or 96 gallon carts. On call curbside bulky
item pick-up, used oil recycling, and Christmas tree collection and recycling are
also provided.
Commercial: Commercial service in containers ranging :lÌ'om 1.5 to 4 cubic yards,
seven days per week. Wet/dry routing is used for comnì.ercial and multi-family
recycling. Dry material is transported to a Material Recovery Facility for
processing. Multi family recycling is also offered in. 3 cubic yard bins and 96
gallon carts.
WI
CommunitY Involvement: The Division has a distinguished record of community
support. Financial and in-kind services are provided to the Santa Ana Boys and
Girls Club, Santa Ana Chamber of Commerce, Martin Luther King Parade, Santa
Ana School District, Discovery Museum, Cinco de Mayo Celebration, Downtown
Business Association, and youth sports teams.
Residential Households:
40,000
Commercial Customers:
5,500
Annual Tons Collected:
330,000
Diversion Rate:
53%
RFSPONSE m REQUEST FOR BIDS. TUsnN, c.~LlFORNIA
Page D-6
r-
CITY OF LAKE FOREST
Contact:
Bob Woodings
(949) 461-3400
23161 Lake Center Drive, Suite 100
Lake Forest, CA 92630
Curbside Residential: Manual collection in resident provided cans, automated 64
gallon cart for commingled recyclables, and automated, 64 or 96 gallon carts for
green waste. Curbside bulky item pick-up and Christmas tree collection and
recycling are also provided.
Commercial: Commercial service in containers ranging fÌ'om 1.5 to 4 cubic yards,
seven days per week. Commercial recycling provided at a reduced cost.
Community Involvement: The Division provides fmancial and in-kind services to
the South Orange County Chambers of ColIlIl1erce, youth sport teams, Lake
Forest Business Expo, Fourth of July Parade, Heritage. Park Christmas
Celebration, Concerts in the Park, and recycling education programs in the
schools.
W:
Residential Households:
12,100
Commercial Customers:
400
Annual Tons Collected:
53,000
Diversion Rate:
63%
RESPONSE TO REQliEIT FOR Jims TUS1J.V, c-1UForINJA
Page D-7
CITY OF TUSTIN
Contact:
Joe Meyers
(714) 573-3150
300 Centennial Way
Tustin, CA 92780
Curbside Residential: Manual collection with all material transported to a
Material Recovery Facility for processing.
Commercial: Commercial service in 1.5 to 6 cubic yard containers seven days per
week with all material transported to a Material Recovery Facility for processing.
Community Involvement: The Division provides fmancial and in-kind support to
the Tustin Chamber of Commerce, Tustin Community Foundation, Tustin Tiller
Days, Chili Cook-Off, Tustin Public School Foundation, Tustin Senior Center,
and youth sports teams.
Residential Households:
8,655
Commercial Customers:
1,900
74,700
Annual Tons Collected:
Diversion Rate:
47%
W'
NFSI'ONSE 70 REQLES1 mil !Jl/)S . nsnv. (,WI-ONN/A
Page D-8
,--.
CITY OF ORANGE
Contact:
Jamie Herbon
(714) 744-5536
300 East Chapman Avenue
Orange, CA 92866
Curbside Residential: Manual collection of trash, 2 crates for recycling. The
residential program will be converted in January 2000 to an automated, three-cart
program for segregated trash, commingled recycling and green waste collection.
Customers can choose 35, 64 or 96-gallon carts. Services also include curbside
bulky item pick-up and curbside Christmas tree collection.
Commercial: Commercial service in containers ranging from 1.5 to 6 cubic yards,
seven days per week. Commercial recycling is also provided.
r
Community Involvement: The District provides fmancial and in-kind support to
the Orange International Street Fair, Fourth of July Celebration, Orange Chamber
of Commerce, Orange School District, youth athletic teams, Senior Center,
Orange County Rescue Mission, and the Jean Berg Memorial Foundation.
w
Residential Households:
23,000
Commercial Customers:
2,900
Annual Tons Collected:
195,000
Diversion Rate:
38%
RESPONSE 70 REQUEIT FOR /llDS.. n;snv, (~jLJFORVIA
Page D-9
~
CITY OF MISSION VIEJO
Contact:
Karen Wylie
(949) 470-840.9
25909 Pala; Suite 150
Mission Viejo, CA 92691
Commercial: Commercial service in containers ranging from 1.5 to 6 cubic yards,
seven days per week. .
CommunitY Involvement: The Division has provided fmancial and in-kind
support to the Mission Viejo Chamber of Commerce, Business Expo, Red Ribbon
Week, Tour d'Olympiad, Fourth of July Celebration, Volunteer Connection Day,
and youth sports teams.
Commercial Customers:
2,100
41,600
~
Annual Tons Collected:
Diversion Rate:
47%
w.
RESI'ON,\I, m REQUEST FOR BIDS TUSTl.V, CI!.IFORNIA
Page D-IO
(
CITY OF La Habra
Contact:
Martin Pastuscha
(562) 905-9792
621 North Lambert Road
La Habra, CA 90631
Curbside Residential: Automated collection with 96-gallon carts. Single stream
recycling in 96 gallon carts; materials include mixed paper, newspaper,
cardboard, phone books, plastics, HDPE and PET, glass, aluminum and tin. On
call curbside bulky item pick-up and Christmas tree collection and recycling are
also provided.
Commercial: Commercial service in containers ranging ITom 1.5 to 6 cubic yards,
seven days per week.
Community Involvement: The division supports the Gary Center, a non-profit
family services organization, the Boys and Girls Club, and the La Habra Chamber
of Commerce.
w
Residential Households:
11,300
Cpmmercial Customers:
1,400
Annual Tons Collected:
57,684
Diversion Rate:
59%
(
Page D-ll
RESPONSE 10 REQI iESHOR BJlJS.. TUSTIN, CALIUJ/INIA
(,
COUNTY OF ORANGE
Contact:
Ian Goss
(714) 834-4108
320 North Carver Street, Suite 400
Santa Ana, CA 92703
Curbside Residential: Automated collection with variable cart sizes of 64 or 96
gallons. Single stream recycling in 64 gallon carts; materials include mixed paper,
newspaper, cardboard, phone books, plastics, HDPE and PET, glass, aluminum
and tin; manual green waste collection in customer provided containers. On call
curbside bulky item pi~k-up and Christmas tree collection are also provided.
Commercial: Commercial service in containers ranging from 1.5 to 6 cubic yards,
, seven days per week. Recycling provided at a reduced charge.
Community Involvement: The Division has provided fmancial and in-kind
support to the Foothill Ranch Homeowners Association, the Santa Margarita
Emergency Response Team, the Orange County Fire Authority, the Santa
Margarita Community Association, and, youth sport teams throughout the
community.
W,.¡l
Residential Households:
35,700
Ton Collected:
1,000
106,500
Commercial Customers:
Diversion Rate:
12%
RESPONSE m RLQ/!EST FOR IIms TUSTIN. CALlFOIINJA
Page D-12
-4IIIIIÞ
Proudly Sen/int}.lhese Communities
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Western Area: 155 North Redwood Drive, ~~te 250, San R¡¡fael, CA 94903 (415) 479-3700 FAX (4]5) 479-373'1
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III.
NEW SERVICE INITIATION EXPERIENCE
City of Santee. Service Transition Date: Spring of 1993
Contact: Jim Stoner (619) 225-4100 Ext 183
Old Service: Open Market, manual residential refuse collection service with a
small, city funded, pilot 3 crate recycling program.
New Service: Single service provided for an automated 3 cart, residential
collection program.
Obstacles and Resolutions: As the new hauler, Mission Recycling (now part of
Waste Management of San Diego) was entitled to all new statistics for residential
refuse and all residential recycling services in the fIrSt year òfthe contract.
Existing haulers still had two years remaining on their five-year notice for
residential refuse collection. Residential customers could choose to use the new
ftanchise hauler at any time.
r-
Because of this issue, it was difficult to estimate the number of routes needed in
the first year of the agreement. In addition, when the recycling carts were
delivered citywide three months into the start of the contract, some residences had
two service providers. There was a significant amount of customer confusion.
With the help of the City of Santee, the residential customers were provided with
enough information to clear up any misconceptions. The only issue that lingered
beyond the fIrSt year was the service change ITommanual to a 3 cart automatéd
system. Some customers didn't like losing the option of unlimited service.
Customers got used to the change during the fIrSt six months of the program.
w
City of Orange, Service Transition Date: June 1, 1999
Contact: Jamie Herbon (714) 755-5536
Old Service: Manual residential refuse collection and a source separated, 2 crate
recycling collection program,. Service provided by a local family owned business
for 45 years.'
New Service: Automated, 3 cart, refuse and recycling collection.
provided by Waste Management.
Service
Obstacles and Resolutions: Customers were resistant to limited service under
the cart program.
As a resolution of this issue, Waste Management gave customers the choice of the
cart sizes to .customize the program to their needs.
IŒSI'O.\SlclORLQIES'lFORBIJJS- nsnv.CIUEORMA
Page D-13
IV.
INFORMATION REGARDING PAST AND PENDING LITIGATION
Litiaation Historv
Exhibit One contains the legal matters responsive to the City's request for
infonnation regarding past and pending litigation. This infonnation has been
retrieved from Waste Management's Legal Information Management System.
However, it must be remembered that Waste Management has grown rapidly
through the acquisition of other companies in recent years. Those acquired
companies mayor may not disclose litigation that meets the criteria set forth in
the RFB for disclosure to the City at the time of acquisition. For this reason,
Waste, Management reserves the right to supplement this information during the
course of the RFB process, or in response to requests for additional information or
questions by the City.
V.
KEY PERSONNEL
Waste Management is an experienced solid waste service provider in Orange
County. Our local team has a broad base of experiences in the local marketplace
and in the solid waste field. Some of our supervisors and managers have been at
the division for over twenty years.
w.
An organizational chart and key personnel resumes are provided for your review.
David Ross will assume the overall responsibility for ensuring that the contract
for the City of Tustin is implemented fully and all conditions are met. Paul Spann
will be the key contact for operational issues, Mary Herrera will be the key
contact person for customer service and billing issues and Christy Kindig will be
the community relations and contract compliance contact. Gaye Soroka will work
'on contract transition issues, program roll out and on going reporting and
government relations issues. Bob Coyle has overall responsibility for all
company activities in Orange County.
More than 40 office personnel, including customer service representatives are
located in the Santa Ana office which will continue to serve as the base of
operations fo,r the Tustin program.
RFSPOSSF 70 REQIJf.ST fOR 11m,\' nsnv, (AUrORNIA
Page D-14
,--
\,
WASTE MANAGEMENT OF ORANGE COUNTY
KEY PERSONNEL
NAME: Bob Coyle
TITLE: Division President
YEARS IN SOLID WASTE INDUSTRY: 30 years
YEARS AT THIS DIVISION: 6 years
EXPERIENCE SUMMARY
Year
Comoanv
TitlelPosition
1993 to Present
Waste Management of
Orange County
Division President
1991 to 1993
Waste Management Inc.
Region Vice-President
1984 to 1989
Waste Management Inc.
Region Vice Presidentl
Northem Europe
Region Operations
Vice President
w
1990 to 1991
Waste Management
Intemational
1969 to 1984
Waste Management Inc.
Various Positions
EDUCATION
1971
De Paul
BS Management
1982
Cal State Northridge
MS Studies
Management
With 30 years of experience with Waste Management, Mr. Coyie has worked in various
positions from route audits in his early days to planning and managing waste coilection
for the 1984 Olympics in Los Angeles. Mr, Coyle has been the person responsible for the
Tustin contract for the last six years.
Page D-t5
RLSi'O'vSE 70 REQUESlrOR BIDS TUSTIN. CAurORMA
WASTE MANAGEMENT OF ORANGE COUNTY
KEY PERSONNEL
NAME: David Ross
TITLE: Sije Manager
YEARS IN SOLID WASTE INDUSTRY: 27 Years
YEARS AT THIS DIVISION: 21 Years
EXPERIENCE SUMMARY
Year . Comoanv TitlelPosition
1999 to Present Waste Management of Ass!. General
Orange County Manager
1995 to 1999 Browning Ferris Managerl
Industries Orange County
1993 to 1995 Western Waste Division Manager
1972 to 1993 Waste Management, Inc" District Manager,
Vice President,
Regional Operations
EDUCATION
1971 San Diego State University BS Psychology
w
Mr. Ross has over 27 years experience in the solid weste industry in operations and
management. He has hed extensive experience negotiating city contracts in Southern
California, and continues to be act/veiy invoived in the community,
RESPONSE 10 RIe"Q1 fEST FOR BIDS.. TliSTl.V. CALIFORNIA
Page D-16
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WASTE MANAGEMENT OF ORANGE COUNTY
KEY PERSONNEL
NAME: Bill Higginbotham
TITLE: Division Controller
YEARS IN SOLID WASTE INDUSTRY: 12 years
YEARS AT THIS DIVISION: 4 years
EXPERIENCE SUMMARY
Year Companv TitlelPosition
1995 to Present Waste Management of District Controller
Orange County
1991 to 1995 Waste Management Inc. Director
Accounting Center
1987 to 1991 Waste Management Inc, Group Office Controller W
r- EDUCATION
1984 Eastern Michigan University BA Finance
Mr. Higginbotham is very experienced in both customer service and financial service
issues, He advanced quickly in Waste Management because of his commitment to
excellence.
(
/lFSI'ONSE 70 llEQI!ESr FOR BIDS. Tl!SnN, CAL/FORMA
Page D-17
WASTE MANAGEMENT OF ORANGE COUNTY
KEY PERSONNEL
NAME: Paul Spann
TITLE: Operations Manager
YEARS IN SOLID WASTE INDUSTRY: 18 years .
YEARS AT THIS DIVISION: 6 years
EXPERIENCE SUMMARY
Year ComDanv nlelPosition
1993 to Present Waste Management of Operations Manager
Orange County
1991 to 1993 Waste Management of Assistant General
San Gabriel Manager
1988 to 1991 Waste Management of Assistant General
Los Angeles Manager
1983 to 1988 Waste Management of Operations Manager
Chatsworth
1981 to 1983 Waste Management of Route Supervisor
Sun Valley
EDUCATION
LA Trade Technical School Molecular Structure
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As operations manager for Waste Management of Orange County, Mr. Spann is charged
with ensuring that waste management services remain a complete focus for the
Company, He is responsible for the City of Tustin operation.
~
RLSPONSE TO RLQU'sTFOR BIDS. IVsnv. CAUFORNI,1
Page D-18
KEY PERSONNEL
WASTE MANAGEMENT OF ORANGE COUNTY
r
NAME: Gaye Soroka
TITLE: Vice President of Government Affairs
YEARS IN SOLID WASTE INDUSTRY: 15 years
YEARS AT THIS DIVISION: 4 years
EXPERIENCE SUMMARY
Year.
ComDanv
1995 to Present
Waste Management of
Orange County
1990 to 1995
Waste Management of
San Diego
1987 to 1990
1977 to 1987
I Love a Clean San Diego
University of San Diego
~
EDUCATION
1972
Villanova University
1980
University of San Diego
1986 to 1990
University of San Diego
TitlelPosition
Vice President of Government
Affairs
Project Director
Executive Director
w
Director of Special
Projects
BA Sociology
MA in Counseling
Doctoral Work in
Leadership
Development
Ms. Soroka's varied work experiences continue to benefit her professional career. From
skills developed in student activities, to management and development of e non-profit
organization, her background has provided the tools necessary to develop progrems to
meet our cities' needs.
RESPONSE m IIEQIiEST FOil Ji/DS .. TUsnv. CAUFORNiA
Page D-19
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WASTE MANAGEMENT OF ORANGE COUNTY
KEY PERSONNEL
NAME: Mary Herrera
I
TITLE: Customer Service Manager
YEARS IN SOLID WASTE INDUSTRY: 9 years
YEARS AT THIS DIVISION: 5 years
EXPERIENCE SUMMARY
Vear
Comoanv
TitlelPosition
1995 to Present
Waste Management of
Orange County
Customer Service
Manager
Inside/Outside
Sales
1993 to 1995
Waste Management
San Gabriel
1985 to 1993
Waste Management of
San Gabriel
Customer Service
Representative
EDUCATION
Mount San Antonio
Walnut, CA
Accounting Courses
Ms. Herrera is committed to exceiience in meeting our customers' needs end she
transfers that commitment to our Customer Service Team.
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RESP()NSE TO REQI.EST F()R Bms TUSTIN. CALWOIINIA
Page D-20
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WASTE MANAGEMENT OF ORANGE COUNTY
KEY PERSONNEL
NAME: Christy Kindig
TITLE: Recycling Coordinator and Contract Compliance Manager
YEARS IN SOLID WASTE INDUSTRY: 6 years
YEARS AT THIS DIVISION: 6 years
EXPERIENCE SUMMARY
Year
ComDanv
TitleJPosition
1993 to 1995
Waste Management of
Orange County
Waste Management
Orange County
Contract Compliance
Manager
1995 to Present
Office Manager
1985 to 1993
Westfore, Inc,
Office Manager
W>
,-
EDUCATION
Fullerton College
Accounting Courses
Ms, Kindig's entrepreneurial spirit has led to the proactive development of recycling
programs for many of our Orange county cities. She is also responsible for the
company's contract compliance management system in order to insure that the company
meets all of the standards established by our cities.
/ŒSI'ONSE TO REQUEST FOR BIDS.. n'STlS, CALlUJRNJA
Page D-2l
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WASTE MANAGEMENT OF ORANGE COUNTY
KEY PERSONNEL
NAME: Ron Sieple
TITLE: Maintenance Manager
YEARS IN SOLID WASTE INDUSTRY: 15 years
YEARS AT THIS DIVISION: 6 years
EXPERIENCE SUMMARY
Year
Company
TitlelPosition
1993 to Present
Waste Management of
Orange County
Maintenance
Manager
1990 to 1993
Waste Management, Inc.
Director of
Maintenance
1986 to 1990
Great Western Reclamation
Maintenance
Manager
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.--
1959 to 1983
US Marine Corps
Captain
EDUCATION
1973 to 1975
Northern Chicago City College
BS Business
Mr. Sieple is a 'can do" person. Waste Management recognizes his outstanding efforts
in ensuring strong management of our maintenance programs.
RESPONSE IV Rl.:Q( !EST FOR BIDS .. TUsnv, elL/FORM I
Page D-22
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VI.
FINANCIAL INFORMATION
The solid waste industry is, by nature, a capital-intensive business and requires
that a company have a high degree of liquidity and capital resources to succeed.
Waste Management has taken great sJrides to ensure fmimcial strength now and in
the future. These strides are based on a f~ commitment to provide cost
effective, state of the art solutions to all of our customers' solid waste and
recycling needs
a.
Financial Statement
Directly behind this section is the 1998 Annual Report for Waste Management,
Inc. and the 1998 Assurance Statement from the CFO. The audit report is
contained in the annual report.
b.
Financing Plan
The company has established $5..0 billion in lines of credit from two syndicates of
banks led by Morgan Guaranty Trust Company and Bank of America, Illinois. In
excess of $3 billion is unused and available to Waste Management for working
capital, acquisitions or other corporate purposes at the discretion of the company.
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In addition to the above credit lines, Waste Management, as the largest solid
waste services company in the world, has ready access to other capital markets.
For example, in July 1998, the company issued $1.2 billion in senior notes.
In order to respond to the changes required in the City of Tustin's solid waste
collection and recycling program, Waste Management will spend approximately
$3.5 millic;m for 16 new vehicles and approximately 25,000 trash, recycling, and
green waste carts. These funds will be generated either through the company's
$1.2 billion in annual cash flow or by borrowing on its credit lines.
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RESI'ON:';¡' 10 Rlo'QIiESI I. OR BIDS lI.snv. CALIFORNIA
Page D-23
('
VWV\
WASTE MANAGEMENT. INC.
Donald R. Chappel
Emu,i", Vi" P",id,n' and
Chi'f Financial Offi",
1001 Fannin, Suite 4000
Houston. TX 77002
(713) 512.6200
(713) 209.9710 Fax
01/12/2000
Statement From Chief Financial Officer
This is to certify that there has been no material adverse change in the financial condition of
Waste Management, Inc., since the date of the most recent financial statement for the period
ended September 30, 1999, which would cause it to be unable to provide financial assurance of
performance under the proposed contract with the City of Tustin, California.
~
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,
I.
REFUSE COLLECTION
~
Waste Management of Orange County is proposing refuse collection in the City
of Tustin which will provide each resident with a choice of cart size for their
refuse and recycling needs. Waste Management of Orange County will provide
weekly collection of trash, recycling and green waste in Waste Management
provided plastic carts. The carts will be color coded for the different types of
materials. .
PROPOSED.
Services
Waste Management is proposing fuel efficient, low entry trucks to limit the
impact of our collection vehicles on the streets of Tustin. As the current service
provider, Waste Management is very familiar with the special needs of certain
sections of Tustin and is well equipped to identify those units which will need to
continue with manual collection.
Waste Management will provide residential collection on the same schedule as we
currently do Thursday & Friday.
a.
Single Family Dwelling Unit Refuse Collection
Waste Management will provide refuse collection once each week on the same
day of the week. Residential customers will be able to select ftom a 35, 64 or 96
gallon cart for their refuse needs. The rate for the different cart sizes will be the
same.
WiJ
Waste Management will use automated collection trucks two days per week to
collect the solid waste set out at the curb. Refuse carts will be collected by
one-man automated side-loader collection vehicle, which will collect ftom
approximately 1,100 homes per day. These routes will collect between
19-22 tons per day. A back-up automated vehicle will also be provided for
extra heavy volume days or in the event of vehicle down time.
Additional refuse carts will be provided at a charge of $4.00 per cart per
month. This fee will be billed semi-annually by the Company. Carts will be
exchanged once during the implementation period and once annually
thereafter at no charge.
b.
Multi-Family Dwelling Unit Refuse Collection - Automated Cart
Service
Waste Management will provide automated refuse collection to those multi-
family units that currently receive curbside service where such collection is
operationally feasible and permitted by the city. Up to one cart per dwelling unit
will be supplied. Waste Management will consult with the City before
implementing the multi-family service, thereby ensuring the proper service level
and proper cart placement.
Page E-l
RESPONSE 10 RlèQlir:\TFOR BIDS. TUSTIN. CALIFORNIA
c.
Commercial and Industrial Property Refuse Collection -
Automated Cart Service
As the current fraÌ1chise hauler, Waste Management is familiar with those
commercial and industrial properties that may need cart service. Again, Waste
, Management will work with the City before implementation begins to identify the
appropriate business and the appropriate cart location.
d.
Multi-Family, Commercial and Industrial Property Refuse
Collection-Bin Service
Waste Management wiU offer multi-family, commercial and industrial customers
refuse collection in bins ranging in capacity from two to four cubic yards These
bins are serviced by a ftont-end loader which is operated by one man.
Waste Management will operate'6 commercial/multi-family bin routes in the City
of Tustin and will provide collection ftequencies ranging ftom once per week to
seven times per week based on the customer's needs.
Waste Management maintains an inventory of more than 200 bins at our storage
yard in Santa Ana. Bins that' are damaged or in need of cleaning are regularly
exchanged at the request of the customer. Waste Management will be able to
comply with the city's graffiti removal conditions.
w':;
'. Bin exchanges, repairs and cleaning will be
recorded in the routing notes of the customer
file.
e.
Manual Can Service
Waste Management will offer manual service to any type of customer who cannot
be serviced by the automated carts or bins. Waste Management's experience in
serving Tustin for over thirty years makes it well qualified to deal with the special
needs of customers.
Page E.2
RLIPONSE J{) REQUEST FOR 811JS Tusnv. CAUFiJll¡Y.JA
f.
Temporary Bin and Roll-off Refuse Services
Waste Management currently provides temporary bins and roll off service to
Tustin, as well as communities throughout Orange County. Waste Management
has a sufficient inventory of 10 to 50 cubic yard rolloff containers to meet
Tustin's needs. Bins and boxes shall be free of graffiti and in good repair.
Deliveries and removals are made within 24 hours, or sooner, from the time of
order. Customers may order COD with cash, or credit card, or they may open a
credit account.
The charges to customers will be composed of a one-time delivery charge, a load
charge for each time a box is taken to a disposal site, and the disposal charge
based on actual tonnage.
Temporary bin service for residential customers will be charged the flat fee as
stipulated in the contract.
g.
City Facilities' Collection
Waste Management is very familiar with the City's facilities and the amount of
service required. Waste Management will provide these services at no charge. In
addition, Waste Management will provide a forty yard waste roll-off box at the
City yard at no additional charge.
W:î
f.
Abandoned Item Collection
Waste Management is prepared and has the equipment necessary to collect
abandoned items in streets and alleys when notified by the City. A roll-off box
will be provided at the City yard for items collected by the City crews.
Page E-3
RLSPOXSL 10 REQUEST FOR JiID" ruST/X, CAUrlJRVlA
II.
Recyclables Collection
Single Family Dwelling Unit Recycling
a.
Waste Management proposes to collect commingled recyclables at curbside for
residential customers every week in a 64 or 96 gallon cart. Recyclables will be
collected on the same day as refuse collection. Each cart will have a sticker
placed on the inside of the lid listing the recyclable materials.
The following materials will be collected as part of the program:
NEWSPAPER
ALUMINUM CANS
MIXED PAPER
HOPE
PET
NARROW NECK PLASTICS
GLASS BOTTLES
METAL CANS
MAGAZINES
CORRUGATED CARDBOARD
PHONE BOOKS
JUNK MAIL
WffiTEPAPER
METAL COAT HANGERS
All recycling loads will be delivered to one of Waste Management's Material
Recovery Facilities: Sunset Environmental, Irvine or Orange Resource Recovery
Center, Orange.
An additional recycling cart will be provided at no additional charge. Residents
can exchange their recycling carts once at implementation and once a year at no
charge.
b.
Multi-Family Dwelling Unit Recycling
Commingled recycling collection will be provided to multi-family dwelling units
at no additional charge. Both carts and 3-yard bins will be used to provide
recycling services. Customers will be notified armually of the program
requirements.
c.
Commercial Recycling
As part of the contract implementation plan, Waste Management will visit and
survey commercial customers in order to implement recycling service. Waste
Management will supply additional bins, and 96-gallon carts for storage and
collection of recyclables. Recycling services will be provided at no additional
charge.
The commingled commercial recycling program will accept mixed office paper,
cardboard, scrap metal, glass, PET plastic, HDPE plastic, all narrow necked
plastic and scrap lumber. A dedicated front-end loading vehicle will service
recycling bins. The recycle loads will be .transported to either Sunset
Environmental or the Orange Resource Recovery Center for processing.
Wjl
RFSPONSE 10 Rf:QUf:STFOR !lIDS TUSl1N, CALIFORNIA
Page E-4
Contamination is a problem in commercial recycling programs. Contaminated
carts and bins will be tagged. Flagrant violators will have recycling containers
removed.
Sales representatives will encourage participation in the program as a way of
reducing overall refuse collection service rates and increasing diversion levels.
d.
Construction Waste Recycling
Waste Management Sales Representatives will proactively work with construction
and demolition customers to identifY ways to keep their loads clean so that they
can be processed. Waste Management's Material Recovery Facility will process
all clean C&D material.
e.
Mixed Waste Recycling
Sunset Environmental will be used for the mixed waste processing of the multi-
family, commercial and industrial customers who do not participate in the
separate recycling program. Waste Management will guarantee a minimal
diversion of 15% from such mixed waste processing.
III.
YARD WASTE COLLECTION
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a.
Single Family Dwelling Unit Yard Waste Collection
Waste Management will provide automated curbside green waste collection
service on a weekly basis on the same day that refuse and recyclables are
collected. A 64 or 96 gallon cart will be provided to each single family ~ustomer.
b.
Commercial & Industrial and Multi-Family Dwelling Unit Yard
Waste Collection
service. Yard waste carts will be
vehicles.
Commercial, industrial and multi-
family customers will be notified
of the new green waste collection
program as part of the
implementation plan. A
combination of carts and bins will
be offered based upon the
customers' needs. Waste
Management will provide a
dedicated front load collection
vehicle for yard waste bin
serviced weekly by yard waste collection
RESPONSE TO IŒQUEST fDR BIDS. TUS71N, cAuroriN/A
Page E-5
c.
Christmas Tree Recycling
Waste Management will provide Christmas and Holiday tree collection each year
during the two weeks following Christmas Day. Single family and multi-family
customers can place trees less than 8 feet in length at the curb for collection and
recycling on their regular day of service. Trees larger than 8 feet in length will
need to be cut in half. Trees that are frosted, flocked or contain metal are not
accepted by green waste proœssors and will be collected with regular refuse.
Additionally, roll-off boxes will be provided at centralized drop-off sites as part
of a separate two-day event; this service will be provided at no additional charge.
d.
End-Uses for Yard Waste,
Waste Management currently collects yard waste from over 110,000 residential
customers on a weekly basis. We utilize local processors and will maximize the
diversion credit for the City.
e.
Diversion Requirements
Waste Management will achieve a minimum of 50% diversion through
transformation, recycling, yard waste collection, source reduction education, and
mixed waste processing. Transformation will not exceed 10% of the total waste
stream.
W.Ii.
f.
,Summary of Proposed Services
As a current service provider,in Tustin, and an experienced service provider in
Orange County, Waste Management has the technical experience and resources
necessary to implement the new contract requirements offered in this proposal.
Waste Management of Orange County will provide refuse collection, commingled
recycling collection and green waste collection utilizing the following equipment
and personnel as stipulated in the Request For Bid. Proposed equipment and
personnel have been discussed in greater detail in the appropriate sections of this
Bid.
RrSI'OSSE TO REQ(/ESTFOR BIDS ..1VS7IN. CAUFORS/A
Page E-6
IV.
Special Services
On-Call Bulky Item Plcku'p
a.
Waste Management will provide two on-call bulky item pick-ups to residential
and multi-family residential customers per calendar year, with a maximum of
three items per pick-up, at no additional charge.
Customers will be required to provide Waste Management with a 48-hour notice.
Items will be picked up on the customer's regular trash day. There will be a
$20.00 charge per pick-up that exceed the two pick-up maximum.
b.
Abandoned Item Collection
Waste Management will collect abandoned items from streets and alleys as
directed by the City at no additional charge. In addition a roll-off box will be
provided at the City yard for abandoned items collected by City crews.
c.
City Sponsored Events
Waste Management will work with the designated coordinator for the City
spon~ored events to determine the correct service level for each event.
Wd
Special event recycling boxes and 3 cubic yard containers for commingled
recyclahles will be provided to those events where recyclables will be collected.
Waste Management has experience servicing all these events.
d.
Special Pickup for Automated Cart Customers
Waste Management will provide up to two special pickups per dwelling unit for
automated cart customers per year. Special pick-ups will be provided for up to
one cubic yard of material that exceeds the capacity of the refuse cart. These
services will be provided at no charge.
e.
Fees
Waste Management will pay the City franchise fees equal to 2% of gross receipts
for all amounts billed by the franchisee to the customers, excluding new cart and
can customers temporarily billed by the ftanchisee prior to being added to the
taxroll. .
Waste Management shall also provide the City a one-time administrative fee of
$90,000. Waste Management will maintain a business license during the term of
the contract.
IŒSPONSE TO REQUEST FOR BIDS 'TUS11N, I'ALJrORNÙI
Page E- 7
v.
DISPOSAL TRANSFER AND PROCESSING FACILITIES
a.
Transfer/Disposal
Waste Management will be utilizing a combination of disposal sites and material
recovery facilities. Residential refuse will be transported to the Frank Bowerman
landfill or Sunset Environmental Transfer Station. Refuse &om commercial and
multi-family customers who participate .in source separated recycling programs
will also be taken to the Bowerman landfill.
Mixed Waste Processing will occur at Sunset Environmental, Waste
Management's Material Recovery Facility in Irvine. Tustin's waste is currently
processed at this facility.
b.
Recycling Processing
Waste Management uses a third party to process our commingled recyclables.
The recycling collection trucks dump their recyclables at Waste Management
Material Recovery Facility (MRF) in Irvine. They are transported to our third
party processor:
Potential Industries, Inc.
922 E Street
Wilmington, CA 90744
W,ol
,,
Contract terms: The current contract is effective for 5 years with 3 one-year
options. Waste Management is guaranteed capacity for 100% of the recyclables
delivered to the Irvine MRF through the term of the contract. The agreement for
services is available, upon request. Waste Management of Orange County
guarantees the City of Tustin the capacity to process all of the recyclable material
generated in the residential and commercial waste collection programs in the City.
Waste Management does not pay a tipping fee for recyclable materials and the
contract with Potential Industries does not provide for a rate increase during the
term of the contract.
Page E-8
RI:.\PONSE TO REQIJESIFOR BIDS TUsnv. CAliFORNIA
c.
Green Waste Processing
Waste Management will be using the Tierra Verde Industries facility located in
Irvine for green waste processing. Tierra Verde is a third party processor and has
no relationship to Waste Management.
Tierra Verde Industries received a solid waste facilities .permit on October 20,
1999. The permit allows them to receive 1,500 tons per day and they currently
receive approximately 500 tons per day. Tierra Verde has guaranteed Waste
Management of Orange County capacity for Tustin green waste for the duration
of this agreement at a rate of $22.00 per ton. There is no provision in the
agreement for rate increases.
Tierra Verde Industries
7982 Irvine Blvd
Irvine, CA 92618
W",tì
RLSi'O'v,W: 10 RLQITS1FOR BIDS mS7JN, ('A UFO/lA/A
Page E-9
,--.
VI.
OPERATING FACILITIES
Equipment to perform all services required by the City of Tustin will be staged
and maintained at Waste Management of Orange County's yard located at 1800 S
Grand Ave., Santa Ana, CA 92705. All maintenance of the equipment will be
done at this facility.
The majority of the franchise administration will be completed by management
and administrativé personnel located at the same facility.
A total of 40 customer service representatives and administrative personnel are
available five days a week to manage inquiries and other issues raised by the
customers and/or the City of Tustin. A smaller customer service staff is also
available on Saturdays ITom 8:00 a.m. - 12:00 p.m.
Our operations and office personnel have extensive experience in servicing the
needs of the residential and commercial customers in Tustin. In addition, Waste
Management personnel changed over 77,000 residential customers in
communities throughout Orange County ITom manual to automated refuse
collection during 1999. Our staff has the experience and knowledge necessary to
provide outstanding service to the City.
Wi.!
IIFSPONSE TO REQUEST FOR BIDS.. 7USl1N. CALJrOIlNiA
Page E-IO
VII.
IMPLEMENTATION PLAN
Waste Management of Orange County is a proven service provider in the City of
Tustin and is very experienced in providing the types of services outlined in the
Request for Bid. Since Waste Management is the ~urrent service provider there
will be a seamless transition to the new service type and new contract tenns.
All of the key personnel have been involved with the conversion of 77,000
customers to automated, variable cart sized collection programs in three service
areas in Orange County in 1999.' This division's experiences will be drawn on to
ensure that Tustin has a successful transition to an automated collection program
and expanded commercial recycling. If selected as the new service provider,
Waste Management will have the new collection program implemented citywide
within 180 days of the start of the contract.
To facilitate a seamless change of refuse and recycling collection services, à
three-phase implementation strategy is required. As outlined in the attached
transition schedule, the three phases include Public Awareness, Equipment
Distribution and Operational Procedures. These components are discussed in
detail below.
Public Awareness
W'
If Waste Management of Orange County is the selected service provider, it is
important that a transition plan be agreed to between the City and Waste
Management within thirty days of the award.
The time period between July 1,2000 and January 1,2001 ensures enough time
for a seamless transition. Our primary objective during the transition and
implementation period wIll be to inform residents and businesses about the new
solid waste service contract.
Waste Management of Orange County will develop, produce and distribute to all
of the community a comprehensive program initiation announcement detailing the
impending change in service and emphasizing the new program offerings.
Well-executed communication encourages maximum participation and assures
that all residents and businesses are notified of their collection days and the types
of services offered.
Within 30 days after the award of the contract, Waste Management of Orange
County will submit the draft of the Program Initiation Announcement and the
Public Education Plan. Complete details of the Public Education Plan are
included in Section X of the Proposed Services section.
RESPONSE J() REQI/EITFOR BIDS, TUSTiN, CIL/FORNI.!
Page E-ll
Starting in May; Waste Management of Orange County's Sales Personnel will
survey commercial customers to determine their preferred service level, recycling
and green waste needs and to explain the transition plan for the exchange of bins.
During this same time period, Waste Management of Orange County personnel
will participate in community presentations and exhibits to promote the residential
collection program. An initial mailing to residents will be sent in July or August
to explain the implementation program and the transition from the. existing system
to the new program.
Equipment Distribution
Within 30 days of the award of the contract, truck orders will be placed. Waste
Management has received assurances from our equipment veIldors that trucks and
carts will be available for the October I, 2000 start-up.
Because Waste Management has a yard in the area and already provides a 3 cart
automated program in the Cities of Santa. Ana,. Irvine, Laguna Beach and the
County unincorporated area, we are very comfortable in meeting the service
schedule.
Operational Procedures
Residential Program Implementation
a.
Two months prior to the beginning of the residential
collection, Waste Management will mail an educational
brochure which will explain the transition from the current
service to the new 3 cart recycling program. Carts will be
stored at a leased facility in or close to Tustin and our
operations yard in Santa Ana. Carts will begin to be
delivered no later than October I, 2000. Carts will be
delivered on a route by route basis. Cart exchanges will be
done before the next collection day.
Carts will be delivered with a "how to" starter kit attached
to one of the carts. The brochure will explain the new
program, the method for sorting waste, the method for
placing the carts at the curb, and most importantly, will
contain informátion'that emphasizes the need to place all
three carts out on the same day.
RlcSPOVSt. 10 RLQl!EST FOR BIDS TliS7JN. CAUFiJRMA
W:..!I
11
Page E-12
b.
Commercial Program Implementation
Customers will be surveyed and a determination will be made of the type of
recycling and green waste service that they may need during the months prior to
the start up.
An available and responsive Customer Service Center is the fmal element of a
successful Implementation Plan. Waste Management of Orange County's
Customer Service Center team will be available six days a week. The Customer
Service team consists of forty (40) professionals, trained to provide total customer
satisfaction.
All commercial customers will be mailed a recycling and green waste generation
survey to identifY customer requirements. Commercial customers will be
provided with either a 96-gallon cart or 3 cubic yard bin for commingled
recycling. If a commercial customer generates in excess of 96 gallons of green
waste each week, they will also be provided with a cart or a bin for green waste.
c.
Summary of Implementation
Waste Management understands the challenge of changing service types and the
requirements of a comprehensive Implementation Plan. We see ourselves as
partners with the City to implement this change to an expanded program.
w
Because of the size of our business base in Orange County, we already have in
place a large part of the equipment and all personnel necessary to ensure the
successful implementation of the new solid waste service contract. All of the
necessary maintenance equipment is already available.
The key components of a successful Implementation Plan are:
. A strong customer communication~ system founded on a well-planned public
education and outreach program.
. Realistic projections for equipment and delivery of this equipment well in
advànce of the start-up date.
. A strong operations and customer service team with requisite training to
respond to service and operational issues, while adhering to the required
schedule.
. A Customer Service Center staffed with representatives dedicated to
providing prompt, courteous service.
Waste Management of Orange County's proposed schedule to implement the
program components discussed herein is presented on the following table.
RE,PONSE 70 IIEQIJf'Sl mil 8ms. TUSTIN, CALIFORNIA
Page E-13
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TRANSITION SCHEDULE
Meet with City to Review Plan
Review Plan
Order Trucks
Residential Route Maps
Approval
Commercial Route Maps
Maps Approval
Residential & Commercial Mailer
City Approval
Order ALL Carts
Cart Delivery/Start Date
Training for CSRs
Program Announcement
City Approval
Commercial Waste & Recycling Brochure
City Approval
Sales Visits to all Commercial Customers
Presentations to Community
Community Displays
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Page E-14
RISI'OXSI.70REQUSIiOli/lfl)\ /(S1JVCIUFOI/\1.1
VIII.
CUSTOMER SERVICE AND BILLING
As described in the Implementation Section, Waste Management
of Orange County has a highly trained Customer Service Center.
in place. They are very experienced in dealing with the City of
Tustin's residential and commercial customer concerns.
As a customer calls into the Customer Service Center, the
Customer Service Representative (CSR) enters the issue into the
computer and the information is transmitted to the appropriate
supervisor. If the customer issue requires an immediate response, the CSR makes
a direct contact with the driver and/or supervisor. '
There are procedures in place to equip Customer Service Representatives to
handle all the typical types of service issues. This staff was in place when Waste
Management converted the City of Santa Ana :&om a mixed waste processing
collection to an automated three-cart program. They have also been responsible
for the successful transition of 77,000 residential customers to automated
collection in 1999 and they have dealt with the issues raised in our acquisition of
Orange Disposal. They have had first hand experience with a service provider
change. Missed pick-ups, spills and litter are corrected on the same day,
dependent upon the titne of the call. If the inquiry is received too late for same
day service, it will be remedied early. the following day.
w
Since the division already provides automated collection service in Santa Ana,
Laguna Beach, Irvine, Lake Forest, La Habra and the County, the Customer
Service Representatives are experienced in handling broken and missing container
requests.
The Customer Service Center is the foundation of our total customer service
program. When a customer calls with a question or problem, Waste
Management's Customer Service Representative,s will answer the call with a
pleasant attitude and respond to the issue in a prompt, courteouS manner. It is our
intent to make customers feel that they have received world class service, a
commitment that we strive to achieve.
The Customer Service Center is equipped with a state of the art telephone system
with a total of 30 incoming lines and an automatic call distribution feature which
routes calls directly to the first available Customer Service Representative. The
Customer Service Manager monitors the telephone system ,throughout the day.
This process will help keep customer's time waiting for a representative to a
minimum. The Customer Service Center is also equipped with an IBM AS400
computer system, which provides on-line, real tilJle access to our customer
database with terminals located on each Customer Service Representative's
station.
RESPONSE J() REQ¡;ES7IOR BIDS TUsnv. CAUU)RNIA
Page E-15
~
The combination of the state of the art technology, in-depth training, along with
team building with the City staff will ensure that each Customer Service
Representative is capable of responding to any customer inquiry that may arise
during initial implementation and throughout the contract term.
Billing
Since Waste Management is currently billing the commercial and industrial
customers in Tustin, we do not anticipate any problems .with billing. The July bill
'will contain an information piece on the new contract services and rates.
Information on the commercial recycling and yard waste' programs will be
included.
In the second quarterly billing, Waste Management will include a customer
service survey with a return mailer. Customers will be asked to grade our service,
public education and.communications programs. This information will be entered
into a database and will be provided to the City.
IX.
Hazardous Waste Management Component
Hazardous Waste Management
W'l
Three principal avenues accomplish the exclusion of hazardous 'and d~signated
waste from disposal by residents and businesses in the Tustin service area: the
Special Waste Program, Educational Training Programs for employees, and
Public Education.
. Company Special Waste Program
Recognizing that many wastes produced by modem industries have the potential
to be harmful to our environment if mismanaged, Waste Management, Inc. has
established the following corporate policy for handling such wastes:
. This policy requires a written description of any special ~astes from
commercial and industrial customers, stating relevant facts about their wastes
and any potential hazards. '
. Before Waste Management, Inc. will manage a questionable waste, laboratory
analysis is required to establish whether the material is hazardous or non-
hazardous.
. Before Waste Management, Inc. will manage the waste, a written internal
technical and operational decision must be obtained approving the proposed
management site and management method (known as a special waste
decision). This corporate program establishes the policy for the responsible
management of those wastes, which fall outside the regulatory defmition of
"non-hazardous."
IŒSI'ONSE 70 REQUES7IOR BIDS rl'snv, CALlI,ORNIA
Page E-16
Employee Training Program
Training of operations staff is conducted by Waste Management of Orange
County supervisory personnel and contract vendors. - All employees receive
training monthly on operating procedures, Waste Management policies, and
safety. Emergency preparedness training is conducted at a minimum frequency of
once per year and includes procedures in the event of a fire, flood, earthquake,
bomb threat or explosion.
Drivers
Listed below are the components of our hazardous waste training
program:
~
All drivers are trained to recognize hazardous or special waste. The
purpose of the training program is to educate drivers to recognize,
report, and reject hazardous or special wastes if they are placed in
residential carts, commercial bins, or roll-off containers. If a driver identifies
hazardous or special wastes in a customer's container, the driver will either
remove it and return it to the customer, or place a notification on the container
identifYing the problem and leaving the waste. The driver will report the incident
to the dispatch office that will refer it to the Division Compliance Coordinator for
follow-up contact with the customer. In some cases, WMOC is required to notifY
regulatory agencies of the presence of hazardous materials in containers; the
regulatory agency has the responsibility of following up with the generator.
w
Recycling Personnel
In addition to training in detection and recognition of hazardous or special wastes,
all recycling personnel are trained to identifY unacceptable recyclables that may
contaminate the quality of the product. '
Hazardous Materials Handling
All personnel involved in overseeing the removal or handling of identified
hazardous wastes have completed a minimum of 8 hours of OSHA training
programs and are trained in detection, recognition, 'identification, and handling of
suspected hazardous waste materials. The training includes familiarization with
the necessary record keeping and permitting associated with hazardous materials.
Load Checking Program
Sunset Environmental and Orange Resource Recovery Center operate a periodic
load-checking program. A minimum of eight randomly seleéted loads are
inspected weekly for hazardous wastes (two loads each from residential, industrial
and commercial drop boxes, route trucks,-industrial route trucks, and public and
commercial vehicles). In addition, all suspicious loads are inspected.
R¡Si'OAS¡: TO REQUEST FOR BIDS IUS TIN, CAUI-ORMA
Page E-17
r-
Hazardous Materials Storage Facilities
All hazardous materials identified i!1 the random load check program are stored in
an isolated area of the site. The facility is secured with an 8-foot slatted chain
link fence and posted with proper warning signs. Special containers are utilized
for segregated storage of the wastes. The facility and containers are kept locked
when an auth\>rized attendant is not present at the facility. All hazardous wastes
removed from the waste stream are stored for a maximum of 90 days before they
are transported off-site for safe disposal.
In the event of an emergency involving any hazardous waste material stored on
site, a "Hazardous Materials Management Plan" has been prepared for the site.
r
w
RlòSI'()'vSL 10 REQI ŒST FOR JI/DS ruST/A'. (AL/UJRMA
Page E-18
r-
x.
Public Education
It is important that the change in service. type has a minimum impact on the
residential and commercial customers in Tustin. A clear and concise public
education plan is the critical piece to a successful transition.
The Program Initiation Announcement is the rust component of a comprehensive
and on-going Public Education Program. While it will give residents and
businesses step by step information on the new program and how to participate; a
successful solid waste program needs both varied and on-going communication
techniques to ensure success.
All promotional material will bear the City seal unless otherwise approved by the
City.
The objectives of the Public Education Program are:
I.
To ensure a smooth transition from the current solid waste service to the
new solid waste service.
2.
To educate the community on the residential and commercial service
changes.
Wi.
3.
To maximize diversion and recycling tormage by making the source
reduction, recycling and green waste programs easily understood by
residents and businesses alike.
4.
To reduce the cost of solid waste collection service for commercial
businesses by establishing recycling as an incentive to reach these goals.
The components of the Public Education Program will be as follows:
Waste Collection and Recycling Program Maller
Prior to the commencement of our new contract service, Waste Management will
produce a waste and recycliqg brochure and mail it to every household and
business in Tustin. This brochure will notify residents and businesses alike of the
new solid waste service program. It will include information about the State
requirement for diversion.
The mailer will also identify the components of the three-cart program and the
types of materials collected in the new program. (See Laguna Beach mailer)
RE.IPO,VSE TO REQUEST FOR RiDS TUSTIN, CAl.lI'iJRNIA
Page E-19
r
New Service Collection Start-Up Campaign
To support the new solid waste services program, Waste Management will
organize an official kick-off for the new program. In Addition, Waste
Management will have carts on display at the library, City Hall,. and the Chamber
of COmmerce office.
Waste Management will also host a community display in city parks for three
Saturdays prior to the start-up. A variety of giveaways, i.e.: pencils~ pens,
bookmarks, etc., will be used to reinforce the recycling program. (See Exhibit
Two for examples)
At a minimum, Waste Management will participate in two community workshops
to be held in different areas oftbe city to explain the new program. We will do as
many presentations as are necessary or requested.
Waste Management will work with the City staff on. the information to be
provided. All materials and promotional plans will receive prior approval from
the city hall.
Commercial Program Mailer
w"~
An information piece explaining the new contract and the new commercial
collection services will be sent to all commercial customers 30 days prior to start-
up. An explanation ~d example of Waste Management's billing cycle will be
included, along with detailed information about late fees and special service
charges.
r
Since source separated recycling at commercial sites is the preferred method of
recovery, this mailer will encourage customers to participate in the recycling
programs.
Program Start-up Kit
Each resident will receive a "how to" brochure when they
receive their carts. The brochure will detail how the program
works, what materials can be recycled, most commonly asked
questions, bulky item pick-up information, holiday schedule,
used oil collection and other pertinent information. The kit will
be delivered with the carts.
The recycling and green waste carts will have a sticker inside
the lid that explains what materials belong in the cart.
, IŒSPONSE m RI~QI 'EST FOR /lIDS. TUSHN. CAJJFO/iMj
Page E-20
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Quarterly Billing Inserts/Notices
At the City's request, Waste Management will include a notice in our bills for
commercial customers that promotes and explains the program. We will also
send notices directly to residential customers at the City's request.
Annual Brochures
Three separate annual brochures will be provided to single-family customers,
multi-family customers and commerciaVÎJldustrial customers. Each brochure will
contain specific information for the particular type of customer. .
\
Corrective Action Notice
A series of tags will be prepared to correspond to the specific educational
materials for customer corrective action. The tags will identifY contamination
issues and inlproper placement of waste lit the curb.
Public Outreach'
r
The p!-lblic QutreachcQmponent will incl!-lde a series of presentations to a wide
range of existing community and business groups. Waste Management will
contact tel).8nt associations, community groups, HOAs', and the Tustin Chamber
of Commerce to make presentations about the new program. '
W'.
Community Events
At the direction of the City, Waste Management will also promote the City's
recyçling program at all business imd conutlunity Chamber of (::ommerce events.
Education Video
W¡u¡te Management will produce an e¡ducational video on the new programs. City
staff will approve the content.
Waste Generation/Characterization Studies
Waste Management has already cooperated with the. City in AB 9~9 studies.
Waste Management intends to continue to utilize the services of Dr. Eugene
TSeng to perfonn solid waste g!memtion IInd disposII¡ ch¡ l'!lcter~tion st!-ldies. In
addition, Dr Tseng will be conducting annual business audits and educational
outreach to insure that the City reaches the ~O% diversion requirement.
~
RESPONSE TO REQ1;r:ÇT FOR BIDS TUS71N, CALIFORNIA
Page E-21
,"""
Reporting
Waste Management is prepared to provide monthly, quarterly and annual reports
to the City of Tustin in much the same format as we currently do. The reports
will be prepared in a method compatible with the City's software/computers. The
reports will contain information that will help the City:
. Determine and set rates and evaluate the efficiency of operations
Evaluate past and present progress towards achieving AB 939 goals and
objectives
. Determine the needs for adjustments to programs
. Evaluate customer service and complaints.
Reports will be provided within the time line stated in Section 8.8 of the franchise
agreement.
Summary
, All public education and promotional materials will be coordinated with City
staff. The City will have approval on all material produced. Examples of public
education materials previously used by Waste Management of Orange County are
included in Exhibit Two.
w.¡
Our division has an excellent track record of partnership with our cities to
promote recycling and environmental stewardship. We have helped the Cities of
Santa Ana, Lake Forest, and Irvine write grants to receive Used Oil Opportunity
Grants to expand used oil collection programs.
R'ECYCLE
USED OIL
.-
RESPONSE ro REQlJESTfOR BIDS TUS71N. CALIFORMA
Page E-22
,I"""'
Gaye Soroka and Christy Kindig are the Waste Management staff who will be in
charge of the Public Education Program. Gaye was responsible for developing
the award winning" I Love a Clean San Diego" Program. She has been
recognized by former Governor George Dukemejian for her recycling efforts and
was Environmentalist of the Year in 1994 for the City of San Diego.
Christy Kindig is the recycling and contract compliance manager for Waste
Management of Orange County. She is currently responsible for the City of
Tustin's AB 939 reporting and record keeping, along with the company's annual
Tustin newsletter.
Waste Management's commitment to community service is reflected in our
fmancial and human resource 'contributions to the communities we serve. Our
people have volunteered their own time at a wide range of community events, and
the entire Waste Managementteam is dedicated to an ongoing involvement in the
well being of Tustin.
w
~
RESPONSE TO REQ1!EÇTFOR BIDS.. TUSTIN, CALIFORNIA
Page E-23
EDCO DISPOSAL CORP. BID
Bid Submitted
to the
City of Tustin
for
Integrated Solid Waste
Management Services
Recycling Today... For A Better Tomorrow!
EI:JC:CJ
DISPOSAL CORPORATION
A WASTE COLLECTION AND RECYCLING COMPANY
www.edco.corp.com
E
DISPClSA..L CClRPClRA.. -rICIN
6670 Federal Boulevard. Lemon Grove. California 91945 (619) 2B7- 7555 Fax: (619) 2B7-5242
January 18,2000
City of Tustin
300 Centennial Way
Tustin, CA 92780
EDCO Disposal Corporation is pleased to submit the attached package in response to the
City of Tustin Request for Bids for Integrated Solid Waste Management Services, dated
December I, 1999.
As a family owned and operated company that provides exclusive collection for two other
Orange County jurisdictions, EDCO has a thorough understanding of the expertise
required to serve the region. This local experience, as well as that gained in the balance of
our Southern California operations, has allowed EDCO to emerge as a national leader in
the waste collection and recycling industry.
As such, we believe EDCO is well positioned to assist the City of Tustin in achieving the
goals of the California Integrated Waste Management Act of 1989 (AB 939), and to
successfully implement a series of integrated collection programs. We look forward to the
opportunity to discuss various aspects of our proposal in detail.
The direct point of contact regarding this submittal is Mr. Steve South, Chief Operating
Officer of EDCO Disposal Corporation, who may be reached at (619) 287-3532. The
local contact for contract administration is Mr. Efrain Ramirez, Vice President of Orange
County Operations, who may be reached at (714) 522-3577.
Thank you for your consideration of the enclosed information.
Sincer~ly,
:'//- .
/¿~ tiut4-\
¿
Edward G. Burr
President
EDCO Disposal Corporation
~í//¡1J
P.mMd"R"""d?,,,.
A WASTE COLLECTION AND RECYCLING COMPANY
Table of Contents
Section I
Anti-Collusion Affidavit
Notary Certification
Responsible Bidder Requirements form
(Attachment 6)
Copy of Cart Manufacturers Warranty
Manufacturer's Certification of Cart
Conformance (Attachment 7)
Executed signature page from Franchise
Agreement (part of Attachment 9)
Section II
Proposed Rates (Attachment 3)
Section III
Supporting Cost and Operating Data
Worksheets (Attachment 4)
Section IV
Bidder Overview
Business Structure
Description of ED CO's Experience
Information Regarding Past and
Pending Litigation
Key Personnel
Financial Information
Section V
Section VI
Table of Contents (cont.)
Proposed Services
Refuse Collection
Recyclables Collection
Yard waste Collection
Special Services
Disposal, Transfer and Processing
Facilities
Operating Facilities
Implementation Plan
Customer Service and Billing
Hazardous Waste Management
Component
Public Education
Other Relevant Information
Section I
Anti-Collusion Affidavit / Notary Certification
Responsible Bidder Requirements form (Attachment 6)
Copy of Cart Manufacturers Warranty
Manufacturer's Certification of Cart Conformance
(Attachment 7)
Executed signature page from Franchise Agreement (part
of Attachment 9)
,;;
ATTACHMENT 5
ANTI-COLLUSION AFFIDAVIT AND NOTARY'S CERTIFICATION
Bidder as a part of this bid submits the following affidavit:
The undersigned deponent, of lawful age, being duly sworn, upon his oath deposes and says:
That he has lawful authority to execute the within and foregoing bid; that he has executed the
same by subscribing his name hereto under oath for and on behalf of said bidder; that bidder
has not directly or indirectly entered into any agreement, express or implied, with any bidder
or bidders, having for its object the controlling of the price or amount of such bid or bids, the
limiting of the bids or bidders, the parceling or farming out to any bidder or bidders or other
persons of any part of the contract or any part of the subject matter of the bid or bids or of
the profits thereof, and that he has not and will not divtÙge the sealed bid to any person
whomsoever, except those having a partnership or other financial interest with him in said bid
or bids, until after the said sealed bid or bids are opened.
Deponent further states that the bidder has not been a party to any collusion among bidders
in restraint of freedom of competition; by agreement to make a bid at a fixed price or to
refrain from submitting a bid; or with any City official or employee as to quantity, quality, or
price in the prospective contract; or in any discussions between bidders and any City official
concerning exchange of money or other things of value for special consideration in the letting
of a contract; that the bidder has not paid, given or donated or agreed to pay, give or donate
to any official, officer or employee of the City directly or indirectly, in the procuring of the
award of contract pursuant to this bid.
Executed under penalty of perjury on this
8th day of January
SIGNED ~~
BY~teve South
, 2000 at-
TITLE Chief Operating Officer
~~d~ ~~~"fO" ~ ,",<sth fjJ!i~::" -
7 4- .20
Comm,#1227841 UI
NOTARY PUBLIC-CALIFORNIA -
San 0le90 C",ty ..
My Comm. ExpIres J,lv 4,2003
Failure to complete and submit this form will deem the proposer's bid non-responsive.
December 1, 1999
5.1
City of Tustm
ATTACHMENT 6
RESPONSIBLE BIDDER INFORMATION
1. The bidder has previously provided exclusive residen1ial refuse
collection services to at least one public agency with a service area
population of at least 30,000 in the past ten years.
2. The bidder has previously provided exclusive commercial refuse
collection services to at least one public agency with a service area
population of at least 30,000 in the past ten years.
3. The bidder has previously provided fully automated residential
refuse collection services (either refuse, recycling or yardwastel to
at least one city or county in the past ten years
4. The bidder has previously provided yardwaste collection services
to at least one city or county in the past ten years.
5. The bidder has previously provided recycling collection services to
at least one city or county in the past ten years.
6. The bidder has previously initiated new exclusive residential and
commercial service in at least one city or county as part of a transition
from a previous service provider.
7. The annual revenues from the Tustin Contract (estimated at
approximately $5 million per year at current rates I will be less
than 33% of the bidder's existing annual revenue as reported for
its most recently completed fiscal year.
8. I have attached all supporting data required to explain the
resp nses in this form.
Dan Galla
Yes
x
x
x
x
x
x
x
x
No
Key to Responses
A, B, C, D, E,
F, G, I, J, K,
_M,N,R
A, B, C, D, E,
F, G, I, J, K,
- M, N, 0, R
D, E, G, I,
_K,N
B, C, D, E, G, I,
_J,K,M,N,R
B, C, D, E, G, I,
_J,K,M,N,R
_C,D,J
Less than 10%
_of $87,000,000
Name of Population Dates of
Key Agency Service
A City of Buena Park 74,000 1976 - Present
B City of Coronado 26,000 1974 - Present
C
City of Encinitas
60,000 1992 - Present
D
City of Imperiel Beach
28,000 2000 - Present
City of Le Mese
54.000 1967 - Present
City of Le Pelma
16,000 1976-Present
G
City of Lemon Grove
25.000 1977 - Present
H
City of Long Beach
430.000 1987 - Present
City of National City
57.000 1975 - Present
Description of
Services Provided
Exclusive Residential Refuse Collection
Exclusive Commercial Refuse Collection
Exclusive Residential Refuse Collection
Exclusive Residentiel Yard waste Collection
Exclusive Residential Recycling Collection
Exclusive Commercial Refuse Collection
Exclusive Commercial Recycling Collection
Exclusive Residential Refuse Collection
Exclusive Residentiel Yard waste Collection
Exclusive Residential Recycling Collection
Exclusive Commercial Refuse Collection
Exclusive Commercial Recycling Collection
Exclusive Residential Automated Refuse Collection
Exclusive Residantial Automated Yardwaste Collection
Exclusive Residential Automated Recycling Collection
Exclusive Commercial Refuse Collection
Exclusive Commercial Recycling Collection
Exclusive Residential Automated Refuse Collection
Exclusive Residential Automated Yard waste Collection
Exclusive Residential Recycling Collection
Exclusive Commercial Refuse Collection
Exclusive Commercial Recycling Collection
Exclusive Residential Refuse Collection
Exclusive Commercial Refuse Collection
Exclusive Residential Automated Refuse Collection
Exclusive Residential Automated Yard waste Collection
Exciusive Residential Recycling Collection
Exclusive Commercial Refuse Collection
Exclusive Commercial Recycling Collection
Non-Exclusive Commercial Refuse Collection
Non-Exclusive Commercial Recycling Collection
Exclusive Residential Automated Refuse Collection
Exclusive Residential Yardwasta Collection
Exclusive Residential Automated Recycling Collection
Exclusiva Commercial Rafuse Collection
Exclusive Commercial Recycling Collection
Nama of
Contact Parson
Mr. Don Jensen
Director of Public Works
Mr. Scott Huth
Director of Public Services
Ms. Un Wurbs
Acting Public Works Director
Mr. Hank Levien
Public Works Director
Ms. Sandra Schultz
Deputy City Manager
Ms. Tami Piscotty
Assistant to City Manager
Mr. Robert Richardson
City Managar
Mr. James R. Kuhl
Manager - Oepartment of Public Works
Mr. Terry McElvoy
Assistant Public Works Director
Telephone
Number
(7141
562-3671
(619)
522-7312
(760)
633-2763
(619)
423-8311
1619)
667-1161
1714)
690-3338
(619)
464-6934
(562)
570-2850
(619)
336-4360
Nama of Population Dates of
Kay Agency Sarvice
City of Poway 47,000 1994 - Present
K
82,000 1977 - Present
City of Rialto
City of San Diego
1,lI0,000 1971-Present
M
51,000 1963 - Present
City of San Marcos
N
9,000 1989 - Present
City of Signal Hill
0
City of Solana Beach
14,000 1993 - Present
P
424,000 1971 - Present
County of San Oiego
R
83.000 1963 - Present
City of Vista
Description of
Services Provided
Exclusive Residential Refuse Collection
Exclusive Residential Yardwaste Collection
Exclusive Residential Recycling Collection
Exclusive Commercial Refuse Collection
Exclusive Commerciel Recycling Collection
Exclusive Residential Automated Refuse Collection
Exclusive Residential Yardwaste Collaction
Exclusive Residential Automated Recycling Collection
Exclusive Commercial Refuse Collection
Exclusive Commercial Recycling Collection
Non-Exclusive Commercial Refuse Collection
Non-Exclusive Commercial Recycling Collection
Exclusive Residential Refuse Collection
Exclusive Residential Yard waste Collection
Exclusive Residential Recycling Collection
Exclusive Commercial Refuse Collection
Exclusive Commercial Recycling Collection
Exclusive Residential Automated Refuse Collection
Exclusive Residential Yard waste Collection
Exclusive Residential Automated Recycling Collection
Exclusive Commerciel Refuse Collection
Exclusive Commercial Recycling Collection
Exclusive Commerciel Refuse Collection
Exclusive Commercial Recycling Collection
Non-Exclusive Residentiel Refuse Collection
Non-Exclusive Residentiel Yard waste Collection
Non-Exclusive Residential Recycling Collection
Non-Exclusive Commerciel Refuse Collection
Non-Exclusive Commercial Recycling Collection
Exclusive Residential Refuse Collection
Exclusive Residential Yard waste Collection
Exclusive Rasidential Recycling Collection
Exclusive Commercial Refuse Collection
Exclusive Commercial Recycling Collection
Name of
Contact Person
Mr. James Howell
Oirector of Public Works
Mr. Rich Scanlan
Oirector of Solid Waste
Mr. Rich Hayes
Environmental Services Oirector
Mr. Paul Malone
Assistant City Manager
Mr. Eduard Schroeder
Director of Public Works I City Engineer
Ms. Lucy Romero Serlet
Assistant City Manager
Mr. Walt Eckert
Chief Administrative Officer
Mr. Bill Basham
Public Works Oirector
Telephone
Number
(858)
679-5400
(909)
820-2622
(619)
236-6844
(760)
744-1050
x 3115
15621
989-735S
(858)
755-2998
(619)
531-5250
(760)
726-1340
x 1601
~~~!~
LINEAR POLYETHYLENE WARRANTY
Roto Industries, Inc. warrants its automated/semi-automated refuse
containers from failure in normal and regular use by the original purchaser
due to defects in material and workmanship. This warranty covers each
container (including hardware) for a period of ten (10) years from the date
of purchase.
This warranty is limited to any component part proven to Roto Industries,
Inc. to be defective in material and workmanship. Containers determined
to be defective by Roto Industries. Inc. shall be repaired or replaced at
Roto Industries discretion. Repair or replacement of containers is the sole
remedy available under this warranty.
No accumulation of defective containers shall exceed $2,000.00 in value
without written notice to the manufacturer. The manufacturer may at his
convenience, inspect any such containers and may challenge his
obligation to replace the container on the basis that the failure resulted
from negligent handling or abusive use. If such is the case, then the
manufacturer shall not be required to replace any such containers. If a
disagreement exists regarding the reason for the failure, they shall select
a third party skilled in the use and fabrication of the materials involved and
shall ask his determination which shall be binding on both parties and they
shall abide by it.
The user/purchaser shall replace any container or component part
damaged through user negligence, abusive use, normal wear and tear
and containers used for purposes other than intended. In no event shall
Roto Industries, Inc. be liable for labor and installation, incidental or
consequential damages, for loss of time or product or delays in
performance under this warranty.
ROTO INDUSTRIES, INC. MAKES NO OTHER WARRANTY.
EXPRESSED OR IMPLIED, INCLUDING WARRANTY OF
MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR USE.
m~~~~
LINEAR POLYETHYLENE WARRANTY
The following are descriptions of several situations where the warranty
does not apply. Exclusion includes, but is not limited to these situations.
NORMAL WEAR AND TEAR
. Scratches - Normal use may cause scratches to the plastic.
. Dirt - Includes the accumulation of dirt or any other substance.
. Normal deterioration during service.
. Normal discoloration due to exposure to the elements.
NEGLIGENT OR ABUSIVE USE
. Cuts or scores from any source.
. Extraordinary impacts such as being hit by a vehicle.
. Burns, scorches, melting. Any damage from excessive heat.
. Improper handling. Includes dropping stacks off delivery trucks,
improper stacking, forcing carts through a narrow opening, allowing
packer mechanisms to hit cart during the dumping cycle, abrasion from
excessive dumping or cracks caused by improper handling or
dumping.
. Damage from automated grasper or semi-automated lifter. Includes
any scratches, creases, cracks or breaks from a maladjusted,
incorrectly operated or improper automated grasper or semi-automated
lifter. This includes any semi-automated lift speed faster than two
seconds for either the lift cycle or the down cycle.
. Improper unloading i.e. - jamming cart into garbage not yet removed
from the hopper.
. Chemicals. Being exposed to solvents, petrochemicals, paints. acids
or any other chemical substances. which damages plastic or metal
parts.
. Improper use. Being used other than for storage, transport and
dumping of normal household residential solid wastes or recyclables.
including such uses as: Construction, industrial, institutional and use
for landscaping, liquid storage/transport, bulk solids storage/transport,
recreation and food service.
. Failure to follow the instructions imprinted on cart or other parts.
2
FROi'1 : EDCO DiSROSHL CaRR
~
~
,
,
RHûì,E ¡,o. : 519 28-;' ';0-;'3
Jan. 0'; 2000 03: 13Ri'1 R2
MANUFACTURER'S CERTIFICATION OF CART CONFORMANCf
FoU~wing are the headings for the specific. design specifications and perfonnaTIce
reqU1!e~ents for the automated carts t~ be obtalned and used in the perfonn<ll\ce of the
Franchise Agreement. Review the Franchise Agreement section referenced (Attachment 9) and
check the space for "Yes" if the carts conform to the design specification or perform<ll\ce
requirement or "No" if the carts do not conform to the specification or requirement.
Cart Desi~n Specifications ~
1. Capacity - Section 4.5.3.1.1 -----..k::::.-
2. Cart HandJes - Section 4.5.3.1.2 V
3. Cart Lid - Section 4.5.3.1.3 v
4. Foot-Hold - Secbon 4.5.3.1.4 ¡ <
5. Cart Colors - Section 4.5.3.1.5
6. Wheel Design and Axles Assembly - 4.5.3.1.6
7. Identification Markings - 4.5.3.1.7
8. Additional Parts - 4.5.3.1.8
9. RepJacement Parts - 4.5.3.1.9
Cart Performance Requirements
1. Minimum Service life - 4.5.3.2.1
2. Cart Load Capacity - 4.5.3.2.2
3. Cart Durability - 4.5.3.2.3
4. Chemical Resist<ll\t - 4.5.3.2.4
5. Stability and Maneuverability - 4.5.3.2.5
6. Lid Performance - 4.5.3.2.6
7. Reparability - 4.5.3.2.7
A TT A CHMENT 7
/'
J/
/'
.
/"
,
(
r"
~
to
,/
I"
.
,/
~
--
I have read the sections of the Franchise Agreement referred to on the previous page and checked
whether or not the carts included in the Bid for the City of Tustin Integrated Solid Waste
Management Services conform to the design specifications <Il\d cart performance requirements
contam1:~H~
Sign~te ~fManufacturer's Representative
Rt't'c1!,(:,,~\-,I(.., T.....',-
,
Name of Cart Manufacturer
~~.\:...,..,c; -:x..:.".~.
. J
í /-.¡ / (!()
1 '
('!-',."",':...."c-
'/
Date
Failure to complete and submit this form will deem the proposer's bid non-responsive.
Decemòer " 1999
7.1
Title
I
Cíty of Tuslin
13.6
Severability
If any non-material provision of this Agreement is for any reason deemed to be invalid
and unenforceable, the invalidity or unenforceability of such provision shall not affect
any of the remaining provisions of this Agreement which shall be enforced as if such
invalid or unenforceable provision had not been contained herein.
13.7
Exhibits
Each of the Exhibits identified in tills Agreement is attached hereto and incorporated
herein and made a part hereof by this reference.
13.8
Non-Waiver Provision
Failure of either party to exercise any of the remedies set forth herein within the time
periods provided for shall not constitute a waiver of any rights of that party with regard
to that failure to perform or subsequent failures to performing whether determined to
be a breach, excused performance or unexcused defaults by the other party.
IN WITNESS WHEREOF, the City and the Company have executed tills Agreement as of the
day and year first above written.
CITY OF TUSTIN
("City")
ATTEST:
By
CITY CLERK
MAYOR, CITY OF TUSTIN
APPROVED AS TO FORM:
("COMPANY")
< / c. f~
B . /C/ ¡ /' , ~./í/. ~ . , ~ ((/.~, /
y:/ L--f'.cL.CL¿ v. ,.L
Name: Edward G. Burr
City Attorney
Tit~ Ô
By' r.
Nem: Sandra L. Burr
~
Titl e:
Chief Financial Officer
1:Æmrt:e'111m
-96.
CtyáTL5Ii1
Jan-ll~OO 02:19P C;ty aT Tust;n PW Deptm
P.O2
ADDENDUM NO.1
TO THE REQUEST FOR BIDS FOR
I~TEGRATED SOLID WASTE MANAGEMENT SERVICES
City of Tustin
300 Centennial Way
Tustin, California, 92780
Bids Due 1 anuarv 18, 2000
The Request for Bids (RFB) Docurnents shall be revised by additions to, deletions
from and changes as stated in this addendum; insofar as original Documents are in
variance with this Addendum, this Addendum shall govern. The following changes
are hereby incorporated.
The following questions were asked at the pre-bid conference on Decernber 16, 1999.
A response is provided after each question.
Ql: ¡\'¡ay subsidiaries of the same company bid agaimt eacii otlIer?
AI: No. Each company may submit only one bid.
Q2: Does tlIe City know the number of apartment buildings?
A2: No. The City has already provided in the RFB the information it has regarding
the number of rnulti-family buildings for which it performs the billing. It is
included on page 1-1 of Attachment 1A of the. RFB. The City does not know how
many rnulti-family bin customers are billed directly by Waste Management,
although the total bin distribution is shown on page 1-2 in Attachment lB.
Q3: Will tlIe City consider revisions to tlte Diversion Requirements in Section 4.4 of ti,e
FranclIise Agreement, and when will the 50% goal begin for measurement purposes?
A3: Section 4.4 of the Franchise Agreement (Diversion Requirements) has been
revised in its entirety:
"The minimum amount that shall be diverted through Recycling, Yard Waste
collection, Mixed Waste Processing, and Transforrnation is 50% of the total
waste stream of the City during each calendar year of this Agreement, starting
with calendar year 2001. Diversion achieved by transformation may consist of
a maximum of 10% of the total waste stream. City shall evaluate Company's
diversion performance at the end of 2001 and each subsequent year-end
thereafter. Should the City not reach this 50% diversion goal for its entire
Addendum No.1
Page 1
1/5/00
Jan'~J.J.'"OO 02:20P C;ty aT Tust;n PW Deptm
P.O3
\."<tst\? stream, as determined by the Citv, in its sole discretion, and the Citv
d~termin~s that th~ Company has not 1~1aximized diversion as contemplate~t
und~r this Agreement, the Cornpany agrees to undertake reasonable efforts to
implement prograrns and provide equipment necessary in order for the City to
meet the 50% diversion goal as soon as possible, and agrees that neither the
City nor Customers shall be required to expend any funds whatsoever in
regard thereto. In addition, if the California Integrated Waste Management
Board determines that the City must-improve its diversion, Company agrees to
undertake reasonable efforts to implement programs and provide equipment
necessary in order for the City to meet the 50% diversion goal, as soon as
possible, and agrees that neither the . City nor Customers shall be required to
expend any funds whatsoever in regard thereto."
Q4: Will the City consider delaying the implementation schedule for the first phase of the
automated collection program described on page 13 of tIre RFB?
A4: Yes. The implementation schedule for the rollout of automated collection
services is revised as follows:
Phase 1 - First 50% of dwelling units
Phase 2 - Second 25% of dwelling units (75% total)
Phase 3 - Full implementation (100% of total)
Within 150 days
Within 195 days
Within 240 days
Q5: Please describe tile City's bid opening procedures.
AS:
1. Bid opening will comrnence prornptly at 4:30 p.rn. on Tuesday, January 18,
2000 in the City of Tustin City Council chambers at 300 Centennial Way.
2. Sealed Bids shall be opened by the City Clerk.
3. City Clerk shall verify that bidders have submitted the required docurnents.
4. City Clerk shall announce the total bid amount as specified in Attachment 3,
Line 22 for each bid submittal
5. City Clerk will announce the apparent low bidder.
6. Members of the audience may request verbal itemization of each bid as
detailed in Attachment 3 under Lines 3, 15 and 18. All other bid information
with the exception of hauler financial information marked "confidential will
be available for review within 24 hours of the bid opening.
7. Bids award will be subject to further review and confirrnation of the bid
calculations the adequacy of the bid subrnissions.
Add~f\dum Nu. 1
Page 2
1/5/00
Jan~1~~OO 02:20P City o~ Tustin PW Deptm
P.O4
Q6: In Section 4.5.3.1.1 of the Franchise Agreement, the docurnent refers to
container sizes" 60 to 70 gallons". Would the City consider revising that
section to increase the size range to 70 gallons?
A6: In Section 4.5.3.1.1 of the Franchise Agreement, second bullet, replace "60 to 6ï
gallons" with "60 to 70 gallons".
This Addendum is to be inc°1l'°rated in and become part of the Bid. This
Addendum No.1 must be acknowled~ed bv sisminsæ: and datinsæ: in the sÏ!mature
and date blocks below. and should be included with the Bid by attachin~ it to the
returned si!p1ature pa~e of the Franchise Agreement.
C ~1Q~
Tim Serlet
Director of Public Works
/ Is- ~O
~
Acknowledged:
5b
Proposer's Signature
.lanuary 14. 2000
Date
EDCO Disposal Corporation
Cornpany
Steve South
Chief Operating Officer
AdJendum ;-';0.1
Page 3
1/5/00
ADDENDUM NO.2
TO THE REQUEST FOR BIDS FOR
INTEGRATED SOLID WASTE MANAGEMENT SERVICES
City of Tustin
300 Centennial Way
Tustin, California, 92780
Bids Due January 18, 2000
The Request for Bids (RFB) Documents shall be revised by additions to, deletions from and
changes as stated in this addendum; insofar as original Documents are in variance with this
Addendum, this Addendum shall govern. The following changes are hereby incorporated.
The diskette containing the Excel file of Attachment 3 that was made available to the
bidders at the Pre-Bid meeting on December 16, 1999 requires two changes that the bidder
should make before submitting its proposal:
a) On Rows 1 and 2 in the "Monthly Billings" column, the Bidder should enter a formula
to calculate monthly billings by multiplying the "Proposed Monthly Rate" by the
"Estimated Number of Service Units." The formula in the column for" Annual Billings"
on Rows 1 and 2 should be revised to be "Monthly Billings" multiplied by 12.
b) In the Rolloff Box Billings.Section, Row 17, the "Units Per Year" should be revised to
13,407 to correspond to the correct number of tons shown in Attachment 3 in the RFP.
The diskette contained an incorrect value of 10,508 tons.
This Addendum is to be incorporated in and become part of the Bid. This Addendum No.
2 must be acknowledged by signing and dating in the signature and date blocks below, and
should be included with the Bid by attaching it to the returned signature page of the
Franchise Agreement.
C /-U.~
Tim Serlet
Director of Public Works
Itt
~
Jilnuary 14. 2000
Date
EDCO Disposal Corporation
Company
Addendum No.2
Page 1
1/14/00
581-qor
60 l-~
ZO'd
w+daa Md u~+snL ~D ^+~~ d~O:tO oo-~t-ue~
SZ:El OO-tl-Nvr
~O-d
Section II
Proposed Rates (Attachment 3)
Attachment 3
Proposed Rates
Residentiel, Multi-Femily end Commercial Cart I Manual Can Rates
Estimated
Propossd Existing Monthly Annual
Row Servioe Monthly Servios Billings Billings
Rata Units"
1 Automated Cart $14.07 8,773 $123,436 $1,481,233
2 Manual Can $14.07 737 $10.370 $124,435
3 Total Cart/Can eilli;;;;-s 9,510 $133,806 $I,60S,668
Commeroiel end Multi-Family Bin Rates
COntainer Pioku s er Week
Row Size 1 3 4 6
4 2 Cubio Vards $72.38 $154.69 $164.44 $183.94
5 3 Cubio Yards $96.50 $206.25 $219.25 $245.25
6 4 Cubio Yards $120.63 $257.81 $274.06 $306.56
Commeroial and Multi-Family Bin Oistribution Matrix - Number of Bins
Container Piokuos er Week Total
Row Size 1 2 3 4 5 6
7 2 Cubic Vards 84 20 9 0 1 2 116
8 3 Cubio Yards 253 562 340 125 132 62 1,474
9 4 Cubio Yards 30 80 97 23 49 46 325
10 Total 367 662 446 148 182 110 1,915
me any rasponsibility for the aocuraoy of the reported information.
Commercial and Multi-Family Bin Billings
Container Pickuos er Week Total
Row Size 1 2 3 4 5 6
11 2 Cubic Vards $6,080 $2.475 $1,392 $0 $174 $368 $10,489
12 3 Cubic Vards $24,415 $92,730 $70,125 $27,406 $30,657 $15,206 $260,538
13 4 Cubic Yards $3,619 $16,500 $25,008 $6,303 $14,225 $14,102 $79,757
14 Total Monthly Billinns $34,113 $111,705 $96,525 $33,710 $45,057 $29,675 $350,784
15 Total Annual Billinos $409,353 $1,340,460 $1,158,300 $404,516 $540,678 $356,103 $4,209,410
Roll-Off Box Billings
Estimated Estimated
Units Proposed Annual
Row Oescriotion Billino Unit Per Vear Rate Billinos
16 Pull Charge # of Pulls 3,002 $127.55 $382,908
17 OisoosaliProcassina Cha # of Tons 13,407 $37,18 $498,522
18 Total Roll-Off Box Billinos $881,430
Summary of Projectad Annual Billings
19
20
21
22
Residential. Multi-Famil end Commercial Cart/Manuel Can Billin s
Commercial and Multi-Famil Bin Service Billin s
Roll-Off Box Billin s
Totel
$1,605,668
$4,209,410
$881,430
$6,696,508
Speoial Services
Row Oescri tion
23 Temporary Bin Services - Psr Pull, plus $5 per day over 7 days
24 Locking Bin - Cost per bin per month
25 Bin Cleanin (in excess of one bin cleanin er ear) - Each
" These unit estimates will be used for purposes of calcuiating rate revenue and
determining the proposer's overall cost. It assumes that ell single family, duplex, and
triplex units will receive automated cart service,
Failura to com Iste and submit this form will deem the ro oser's bid non-res onsiva,
Oocombor " 1999
3-1
Cily of Tustin
Section III
Supporting Cost and Operating Data Worksheets
(Attachment 4)
Attachment 4
Supporting Costs end Operating Date
Projected Revenue Requirement lor the Fir.. Twelve Month. 01 the Franchise Agreement
Automated Manual Bin Service SF&MF TOTAL
Row Can Roll-Off Box Bulky Item ANNUAL
Reluse Recycling Yard Wa..e Service Relu.e Recycling Service Pick-<Jp and REVENUE
Other REOT.
1 Truck Operating Co... (a) $3'..80. '2D2.'SS $3'7.27. "'.ss. "."0.024 "'9.42. $273.60' ,s'.4.' 02.64s,074
2 Procs..ing Co.t. ",7.'C7) ",0.41s $2s..02 ".'s','s, 's',5O' '4ss.00' ".D's,s7.
3 Di.po.al Co.t. $222,O's "0,720 $2",2's
4 Containsr Co.t. '92.014 '.2,s.2 '.'.464 022,4s7 "0.,344 02",4.' 's.',.s2
5 Gsnsral, Admini.trative and Prom "27.'°7 'SS,04D "27.7.4 "s,s04 '471,17' "04.s.2 "°',"2 "7,sss ".077,'07
6 Franchi.e Fee ,° 's',Os7 "o.sl. "7.s07 ,o '.1,S42
7 Other "2,s07 "2,s07
8 TOTAL REVENUE REQUIREMENT "s2.14S $364,4.2 's73,O40 ".',742 ...17s,'27 "'O,." 's.2.O4' "'2,070 ,s.s.s,OOs
9 Ton. Collected 10,114 5,016 3,421 587 35,516 8,613 13.407 319 76,995
10 Revenue Requirement per Ton Collected $77 $73 $197 $259 $89 $62 $66 $414 $87
11 Ton. Diverted 5,000 - 6,100 3,400 - 4,100 200 - 400 8 800 - 10400 8,600 - 9,900 7,400 - 8 900 200 - 250 33,600 - 40,050
Number 01 Route.
Route. ~r Da. Hours psr
Row Route Type Mon Tue. Wed Thur. Fri Sat Sun Total Route per
Dav'
12 Number 01 Routs. per Day:
13 Automated Cart Route.
14 - Rslu.e Route. 2.00 2.00 2.00 2.00 2.00 11.00
15 - Recycling Route. 2.00 2.00 2.00 2.00 2.00 11.00
16 . Yard Wa.te Routs. 2.00 2.00 2.00 2.00 2.00 11.00
17 Manual Can Relu.e Route. 0.50 0.50 0.50 0.50 0.50 11.00
18 Bin Routs.
19 - Relu.s Route. 5.00 5.00 5.00 5.00 5.00 5.00 11.00
20 - Recycling Route. 3.00 3.00 3.00 3.00 3.00 3.00 11.00
21 Roll-Off Box 1.50 1.50 1.50 1.50 1.50 11.00
22 SF & MF Bulkv Item Pickuo and Other 0.50 0.50 0.50 0.50 0.50 11.00
23 Total Route. 16.50 16.50 16.S0 16.50 16.50 8.00 0.00 0.00
. For Example, 8, 9 or 10 hour. psr day
Failurs to complete and .ubmit this lorm will deem the oroposer'. bid non..e.pon.ive.
Oecembe, " 1999
4-1
City 0' Tustin
Section IV
Bidder Overview
Business Structure
Description of EDCO' s Experience
Information Regarding Past and Pending Litigation
Key Personnel
Financial Information
Business Structure
The legal entity that would enter into the Franchise Agreement with the City of Tustin is
EDCO Disposal Corporation
EDCO Disposal Corporation was incorporated in the State of California in March 1967
Please tind listed below all requested information
Shareholders
Edward Burr - 50%
Sandra Burr - 50%
Ofiicers
Edward Burr - President
Sandra Burr - Vice President / Chief Financial Otf¡cer
Steve South - Vice President / Chief Operating Officer
Efrain Ramirez - Vice President / General Manager
Jeff Ritchie - Vice President / General Manager
Creditors
over 10%
Wells Fargo Bank as Agent
Corporate Oftices
6670 Federal Blvd
Lemon Grove. CA 91945
(619) 287-7555
Description of EDCO's Experience
Following is description of EDCO Disposal Corporation's experience in providing solid
waste and recycling services to municipal customers. EDCO has executed exclusive
fTanchise agreements with 13 cities in Southern California over the past thirty two years.
The company also holds permits to provide waste collection services in two of California's
largest cities. In the past five years EDCO has converted seven cities to Automated
Collection. As a member of the community in all cities EDCO serves, the following also
lists many events and organizations the company enjoys supporting.
City of Buena Park
6650 Beech Blvd., Buena Park, CA 90622
Orange County, CA
Population: 74,000
-Exclusive Franchise Since 1976
Services Provided:
-Manual Residential Waste Collection
-Commercial Waste Collection
-Industrial Waste Collection
1998 Tonnage Collected
1998 Tonnage Diverted
Households Served
85,000
32,000
14,500
Communitv Involvement:
-Annual City Wide Clean-up
-Annual Silverado Days Sponorship
-Platinum Sponsor, Buena Park Chamber of Commerce
-Beautification Environmental Commision
-Supporter of Numerous Youth Sports Leagues
City Manager: Mr. Greg Beaubien
Contact: Mr. Don Jenson, Director of Public Works
(714) 562-3550
(7)4) 562-3671
City of Coronado
1825 Strand Way, Coronado, CA 92118
San Diego County
Population: 26,000
-Exclusive Franchise Since 1974
Services Provided:
-Manual Residential Waste Collection
-Commercial Waste Collection
-Industrial Waste Collection
-Residential Curbside Recycling
-Multi Family Recycling
-Commercial Recycling
-Manual Residential Yard Waste Collection
1998 Tonnage Collected
1998 Tonnage Diverted
Households Served
24,000
4,500
3,200
Communitv Involvement:
-Annual Clean-up Days
-Camp Able
-Coronado Flower Show
-Chrysler Classic Speed Festival Sponsorship
-Coronado Chamber of Commerce Golf Classic Sponsor
-Over The Bay Bridge RunlWalk
-Salute to the Military Ball
-Coronado Hospital Foundation
-Supporter of Numerous Youth Sports Leagues
Contact: Mr. Scott Huth, Director of Public Services
(619) 522-7312
City of Encinitas
505 S Vulcan Avenue, Encinitas, CA 92024
San Diego County
Population: 60,000
-Exclusive Franchise Since 1992
Services Provided:
-Manual Residential Waste Collection
-Commercial Waste Collection
-Industrial Waste Collection
-Residential Curbside Recycling
-Multi-Family Recycling
-Commercial Recycling
-Manual Residential Yard Waste Collection
1998 Tonnage Collected
1998 Tonnage Diverted
Households Served
62,000
19,000
16,700
Community Involvement:
-Annual City Wide Clean-up
-Encinitas Street Fair
-Title Sponsor Encinitas Chamber of Commerce Golf Tournament
-Encinitas Chamber of Commerce Installation Dinner Sponsorship
-Major Corporate Sponsor of Coastal Community Foundation
Contact: Ms. Lin Wurbs, Acting Public Works Director
(760) 633-2763
City of Imperial Beach
495 Tenth Street, Imperial Beach, CA 91932
San Diego County, CA
Population: 28,000
-Exclusive Franchise Since January I, 2000
Services Provided:
-Automated Residential Waste Collection
-Commercial Waste Collection
-Industrial Waste Collection
-Automated Residential Curbside Recycling
-Automated Multi-Family Recycling
-Commercial Recycling
-Automated Residential Yard Waste Collection
-Curbside Used Motor Oil Collection
Tonnage Diverted
Households Served
N/A
4,200
Communitv Involvement:
-Annual City Wide Clean-up
-Imperial Beach Symphony-By- The-Sea Sponsorship
Contact: Mr. H.A. (Hank) Levien, Public Works Director
(619)423-8311
City of La Mesa
8130 Allison Avenue, La Mesa, CA 91941
San Diego County
Population: 54,000
-Exclusive Franchise Since 1967
Services Provided:
-Automated Residential Waste Collection
-Commercial Waste Collection
-Industrial Waste Collection
-Residential Curbside Recycling
-Multi Family Recycling
-Commercial Recycling
-Automated Residential Yard Waste Collection
1998 Tonnage Collected
1998 Tonnage Diverted
Households Served
48,000
12,000
9,800
Communitv Involement:
-Annual City Wide Clean-up
-Annual Flag Day Parade Participant
-Title Sponsor, Grossmont Hospital Foundation Golf Tournament
-Senior Task Force
-Title Sponsor, La Mesa Kiwanis Golf Tournament
-Supporter of Numerous Youth Sports Leagues
City Manager: Mr. David Wear
Contact: Ms. Sandra Schultz, Deputy City Manager
(619) 463-6611
(619) 667-1161
City of La Palma
7822 Walker St, La Palma, CA 90623
Orange County
Population: 16,000
-Exclusive Franchise Since 1976
Services Provided:
-Manual Residential Waste Collection
-Commercial Waste Collection
-Industrial Waste Collection
1998 Tonnage Collected
1998 Tonnage Diverted
Households Served
14,500
4,500
4,200
Community Involvement:
-Annual City Wide Clean-up
-Red Ribbon Week
-Corporate Sponsor, Concerts In The Park
-Young Teen Adults Organization
-Supporter of Numerous Youth Sports Leagues
City Manager: Mr. Daniel Keen
Contact: Ms. Tami Piscotty, Senior Management Assistant
(714) 523-7700
(714) 690-3338
City of Lemon Grove
3232 Main St, Lemon Grove, CA 91945
San Diego County
Population: 25,000
-Exclusive Franchise Since 1977
Services Provided:
-Automated Residential Waste Collection
-Commercial Waste Collection
-Industrial Waste Collection
-Residential Curbside Recycling
-Multi Family Recycling
-Commercial Recycling
-Automated Residential Yard Waste Collection
1998 Tonnage Collected
1998 Tonnage Diverted
Households Served
21,000
4,000
4,800
Communitv Involvement:
-Annual City Wide Clean-up
-Paint Lemon Grove Major Sponsor
-Plant Lemon Grove Sponsorship
-Old Time Days Sponsorship
-Tilte Sponsor Annual Chamber of Commerce Installation Dinner
-Supporter of Numerous Youth Sports Leagues
Contact: Mr. Robert Richardson, City Manager
(619) 464-6934
City of Long Beach
333 West Ocean Blvd, Long Beach, CA 90802
Los Angeles County
Population: 430,000
-Non Exclusive Permit Sincel987
Services Provided:
-Commercial Waste Collection
-Industrial Waste Collection
-Multi Family Recycling
-Commercial Recycling
1998 Tonnage Collected
1998 Tonnage Diverted
30,000
200
City Manager: Mr. Henry Taboada
Contact: Mr. Jim R. Kuhl, Public Works Director
(562) 590-6101
(562) 570-2850
City of National City
1243 National City Blvd, National City, CA 91950
San Diego County
Population: 57,000
-Exclusive Franchise Since 1975
Services Provided:
-Automated Residential Waste Collection
-Commercial Waste Collection
-Industrial Waste Collection
-Automated Residential Curbside Recycling
-Multi Family Recycling
-Commercial Recycling
-Automated Residential Yard Waste Collection
1998 Tonnage Collected
1998 Tonnage Diverted
Households Served
48,000
6,000
5,200
Communitv Involvement:
-Annual City wide Clean-up
-The Taste of National City
-Christmas In July
-Auto Heritage Days
-Title Sponsor Annual National City Chamber of Commerce Installation Dinner
-May Time Band Review
-Project CARE
-Boys & Girls Club of National City
-Passport To The Future
-Supporter of Numerous Youth Sports Leagues
City Manager: Mr. Tom McCabe
Contact: Mr. Terry McElvoy, Assistant Public Works Director
(619) 336-4230
(619) 336-4360
City of Poway
144467 Lake Poway Rd, Poway CA 92064
San Diego County
Population: 47,000
-Exclusive Franchise Since 1994
Services Provided:
-Manual Residential Waste Collection
-Commercial Waste Collection
-Industrial Waste Collection
-Residential Curbside Recycling
-Multi-Family Recycling
-Commercial Recycling
-Manual Residential Yard Waste Collection
1998 Tonnage Collected
1998 Tonnage Diverted
Households Served
41,543
17,000
12,400
Communitv Involvement:
-Annual City Wide Clean-up
-Poway Earth Day
-Major Sponsor of Po way Rodeo & Pow-Wow Days
-Supporter of Numerous Youth Sports Leagues
Contact: Mr. James Howell, Director of Public Works
(858) 679-5400
City of Rialto
1451 North Linden, Rialto, CA 92376
San Bernardino County
Population: 82,000
-Exclusive Franchise Since 1977
Services Provided:
-Automated Residential Waste Collection
-Commercial Waste Collection
-Industrial Waste Collection
-Automated Residential Recycling
-Multi-Family Recycling
-Commercial Recycling
-Manual Residential Yard Waste Collection
1998 Tonnage Collected
1998 Tonnage Diverted
Households Served
72,000
18,000
17,800
CommunitY Involvement:
-Annual City Wide Clean-up
-Rialto Chamber of Commerce Golf Tournament
-Rialto Car Show
-Rialto Business Expo
-Supporter of Numerous Youth Sports Leagues
City Administrator: Mr. Joe Guzzetta
Contact: Mr. Rich Scanlan, Director of Solid Waste
(909) 820-2689
(909) 820-2622
City of San Diego
202 C. Street, San Diego, CA 92101
San Diego County
Population: 1,110,000
-Non Exclusive Permit Since 1971
Services Provided:
-Commercial Waste ColIection
-Industrial Waste Collection
-Commercial Recycling
-Multi Family Recycling
1998 Tonnage Collected
1998 Tonnage Diverted
170,000
2,500
Community Involvement:
-Earth Day
-San Diego Center for Children
-Make-A-Wish Foundation
-American Diabetes Association Golf Tournament Sponsor
-Title Sponsor John Carney GolfTounament, Fresh Start Surgical Gifts
-Rock-N-Roll Marathon
-Pro Kids Golf Academy
-Supporter of Numerous Youth Sports Leagues
City Manager: Mr. Michael Uberagua
Contact: Mr. Rich Hayes, Environmental Services Director
(619) 236-5941
(619) 236-6844
City of San Marcos
1 Civic Center Dr, San Marcos, CA 92069
San Diego County
Population: 51,000
-Exclusive Franchise Since 1963
Services Provided:
-Manual Residential Waste Collection
-Commercial Waste Collection
-Industrial Waste Collection
-Residential Curbside Recycling
-Multi-Family Recycling
-Commercial Recycling
-Manual Yard Waste Collection
1998 Tonnage Collected
1998 Tonnage Diverted
Households Served
60,500
12,000
9,700
Communitv Involvement:
-Annual City Wide Clean-up
-Corporate Sponsor, San Marcos Boys and Girls Club
-Title Sponsor, San Marcos Chamber of Commerce Golf Tournament
-San Marcos Lions Club Chili Cook-Off
-Annual Sponsor, San Marcos Chamber of Commerce Installation Dinner
-San Marcos Redevelopment Agency
-Supporter of Numerous Youth Sports Leagues
Contact: Mr. Paul Malone, Asst City Manager
(760) 744-1050 x3115
City of Signal Hill
2175 East 28th Street, Signal Hill, CA 90806
Los Angeles County
Population: 9,000
-Exclusive Franchise Since 1989
Services Provided:
-Automated Residential Waste Collection
-Commercial Waste Collection
-Industrial Waste Collection
-Automated Residential Recycling
-Multi-Family Recycling
-Commercial Recycling
1998 Tonnage Collected
1998 Tonnage Diverted
Households Served
32,000
15,000
1,700
Communitv Involvement:
-Annual City Wide Clean-up
-Concerts In The Park
-Chamber of Commerce Board of Directors
-Supporter of Numerous Youth Sports Leagues
City Manager: Mr. Ken Farfsing
Contact: Mr. Eduard Schroder, Director of Public Works
(562) 989-7302
(562) 989-7359
City of Solana Beach
635 S Highway 101, Solana Beach, CA 92075
San Diego County
Population: 14,000
-Exclusive Franchise Since 1993
Services Provided:
-Commercial Waste Collection
-Industrial Waste Collection
-Commercial Recycling
1998 Tonnage Collected
1998 Tonnage Diverted
8,500
700
CommunitY Involvement:
-Annual City Wide Clean-up
-Sponsor of Solana Beach Fiesta Del Sol
-Knights of Columbus Fundraising Dinner
-Supporter of Numerous Youth Sports Leagues
City Manger: Mr. Bob Semple
Contact: Ms. Lucy Romero Serlet, Assistant City Manager
(858) 755-2998
(858) 755-2998
County of San Diego
County of San Diego (un-incorporated)
1600 Pacific Highway, San Diego, CA 92101
San Diego County
Population: 424,000
-Non Exclusive Permit Since 1971
Services Provided:
-Manual and Semi-Automated Residential Waste Collection
-Commercial Waste Collection
-Industrial Waste Collection
-Residential Curbside Recycling
-Multi-Family Recycling
-Commercial Recycling
-Manual and Semi-Automated Yard Waste Collection
1998 Tonnage Collected
1998 Tonnage Diverted
Households Served
115,000
7,500
11,500
Communitv Involvement:
-Spring Valley Chamber of Commerce Golf Tournament
-Major Sponsor, San Dieguito Boys and Girls Club
-Fallbrook Avocado Festival
-Fallbrook Hospital Foundation
- Viejas Band ofInidians Circle of Life Foundation
-Supporter of Numerous Youth Sports Leagues
Chief Administrative Officer: Mr. Walt Eckert
(619) 531-5250
City of Vista
1165 East Taylor St, Vista, CA 92084
San Diego County
Population: 83,000
-Exclusive Franchise Since 1963
Services Provided:
-Manual Residential Waste Collection
-Commercial Waste Collection
-Industrial Waste Collection
-Residential Curbside Recycling
-Multi-Family Recycling
-Commercial Recycling
-Manual Yard Waste Collection
1998 Tonnage Collected
1998 Tonnage Diverted
Households Served
76,000
)9,000
15,600
Community Involvement:
-Annual City Wide Clean-up
-Title Sponsor, Vista Chamber of Commerce Golf Tournament
-Sponsor of Vista Girls Inc. Golf Tournament
- Vista Rotary Club "Raise The Barn" Fund For The Rancho Buena Vista Adobe
-Vista Rotary Octoberfest
-Environmental Quality Commision of Vista
-Supporter of Numerous Youth Sports Leagues
Contact: Mr. Bill Basham, Public Works Director
(760) 726-1340 x1601
CITY OF LA PALMA
City Council
7822 Walker Street. La Palma, California 90623-1771
(714) S23-7700' Fax: (714) 523-2141
Mayor Kenneth A. Blake
Mayor Pro Tem Alta E. Duke
Lauree Aragona
Brian O'Neal
Paul F. Walker
July 29, 1999
To Whom It May Concern:
EDCO Oisposal Corporation (EDCO) has been the City of La Palma's exclusive waste collection
and recycling company for the past 24 years. As recognition of their company's superior service,
the City extended EDCO's contract for another ten years on July 15.1997.
EDCO Disposal Corporation has been an integral part in assisting the City achieve compliance
with AB 939. Their diversion program, through use of a Materials Recovery Facility, has resulted
in the City reaching the 50% diversion mandate. EDCO provides these services at the lowest cost
possible and, because of this, the City of La Palma has one of the lowest residential collection
rates in Orange County.
In addition to EDCO's waste and recycling services, their interest in being part of the community is
commendable. EDCO participates in community events including the Annual Spring Clean-up,
Red Ribbon Week, and the Concerts in the Park series. These events would not be the success
they are if it were not for the support from EDCO Disposal Corporation.
I am confident that EDCO can provide the same level of excellent customer service in your
jurisdiction. If you would like to discuss their qualifications further, please feel free to call me at
(714) 523-7700.
Sincerely,
)
1""v';u~Q , ~~ 0
Kenneth A. Blake
Mayor
CITY OF BUENA PARK
Department of Public Works
Donald K. Jensen, Director
April 19, 1999
To Whom it May Concern:
EDCO Disposal Corporation (EDCO) has served the residents of Buena Park as the
excJusive waste collection and ïecycling company for over 23 years. During this period of
time, EDCO has played a major role in our community and has provided exemplary
service to our residents.
The staff of EDCO truly stand out as customer service professionals. EDCO's
commitment to our community is evidenced in their contribution and sponsorship of
Buena Park's Annual Spring Cleanup and the Special Waste Pickup Week for senior
citizens and handicapped persons. This event increases in popularity and participation each
and every year The success of this event has recently led to a new Fall Cleanup day which
provides residents with an additional opportunity to dispose of large items. These events
are sponsored by EDCO at a significant cost and demonstrate the responsibility they feel
toward making Buena Park a beautiful place to live.
EDCO was instrumental in the preparation of Buena Park's Source Reduction and
Recycling Element and Household Hazardous Waste Element. Since the passage of AB
939, EDCO has assisted the City in implementing a successtùl recycling program while
maintaining disposal and recycling rates among the lowest in Orange County. As the year
2000 50% diversion mandate approaches, we will continue to rely on the professional
expertise of EDCO's management team to present and implement new technologies in
waste collection and recycling.
The City of Buena Park looks forward to many more years of quality service from EDCO
We recommend them without reservation and are confident in their ability to provide this
same level of service and satisfaction to your city. If you would like to discuss our
experience with EDCO you are welcome to call me at (714) 562-3670.
Sincerely, ~
6hdl ~
Donald K Je sen
Director of 'c Works
6650 Beach Boulevard, P. O. Box 5009, Buena Park, California, 90622-5009
(714) 562-3500 Fax (714) 562-3677
CITY OF SIGNAL HILL
2175 Cherry Avenue. Signal Hill.California'XJ806
April 20, 1999
To Whom It May Concern:
Signal Hill Disposal (EDCO) has provided the City of Signal Hill with refuse services for
the past thirteen years. We recently completed negotiations for a seven-year contract
extension that will help us comply with the waste reduction mandates of AB 939. EDCO
has been a partner in developing the programs that have helped us achieve a 57%
diversion rate this year.
EDCO has always provided superior service to our community. During the contract
negotiations they provided assistance in determining if we could achieve the State
mandates. This included exploring automated collection and automated recycling.
EDCO implemented these new programs in a very professional way, resulting in few
customer complaints. EDCO worked hard to resolve any concerns that residents might
have when we converted to automated collection. We have now been in the automated
collection system for two years, with relatively few concems expressed from our
residents.
The community has always been impressed with the high level of customer service
provided by EDCO. They participate in many programs that improve the quality of life in
our community, including special neighborhood clean up programs. They recently
began working with our community on a program aimed at cleaning up trash and debris
from our alleys. On the lighter side, they help sponsor fun community events, like our
summer concert in the park series.
Based on this track record, I would not hesitate in recommending that you seriously
consider EDCO for your waste disposal and recycling needs. I would be happy to
discuss their qualifications with you. I can be reached at 562-989-7302.
Sincerely,
~n~~
City Manag;arf~
CITY OF CORONACO
1825 STRAND WAY
CORONADO, CA 92118-3099
AprilS, 1999
OFFICE OF THE CITY MANAGER
TEL. (619) 522-7335
FAX. (6191522-7846
Mr. Steve South
General Manager
ED CO
6670 Federal Boulevard
Lemon Grove, CA 92045
Dear Steve:
As you know, I am soon leaving Coronado to become City Manager of Newport Beach,
California. Before leaving, I want to let you know what a pleasure it has been working with you,
Ed Burr and all the other fine EDCO employees who provide waste pick-up and hauling services
for the City of Coronado.
I have been a City Manager in California for 19 years, and I cannot think of a single municipal
service provider that matches EDCO in terms of the high level of service provided. Your
immediate response to service related issues and your ability to bargain rate issues to a
successful conclusion is excellent. EDCO is truly an outstanding company and I am pleased to
have had EDCO provide services to Coronado over my past II years.
Please feel free to use my name as a reference for your company any time. I hope to be able to
work with you again someday.
Sincerely,
~l~
Homer L. Bludau
City Manager
HLB/dcr
I\,m\dcll"\SSOUTHEDCO
City of National City
Public Works Department
2100 Hoover Ave., National City, CA 91950-6599
(619) 336-4580 Fax: (619) 336-4597
Apri121,1999
To Whom It May Concern:
SUBJECT
LETTER OF REFERENCE
I have worked with Ed Burr and his EDCO for the past twenty years, and as the Public
Works Director, I have been the primary City official dealing with refuse and the official
developing and recommending to Council on all aspects of refuse including recommendations
for rate setting.
Mr. Burr and his Company are easy to deal with, and have always been responsive to the
needs of the City and to requirements as established by me
During the last 8 to 10 years, this City of 54,000 has averaged three or four complaints per
year pertaining to EDCO services. I have investigated most of them myself; and although
some were valid, most were not In either type instance, EDCO individuals at various
organizational levels have extended themselves to ensure a happy customer. This level of
care and concern is refTeshing.
A number of programs have required very close coordination between my office and EDCO.
Such projects as the curbside recycling program, multifamily recycling, articulated boom pick
up of trash carts, the annual rate adjustments pertaining to over-collection/under-collection
because of joint guesses with respect to tip fees, total trash, extent and value of recovered
recyclables, etc. have gone forward in a spirit of mutual cooperation that is rare indeed. We
jointly developed a rate stabilization plan by use of a Refuse Enterprise fund and starting in
FY -97 we have jointly developed a 5-year rate projection by mutually establishing the size of
major cost elements.
Rather than simply saying that EDCO is an outstanding company, I have chosen to cite the
above examples of extraordinary cooperation and to let the reader draw his own conclusions
with respect to the quality of ED CO.
As a further endorsement, I have recently recommended, and Council has approved, an
"evergreen" type contract with EDCO.
@ Recycled Paper
Letter of Reference
Apri121,1999
Page 2
I also must comment on the participation of EDCO in Community efforts in National City.
EDCO is always there volunteering its company services whenever there is a Community
need In addition, EDCO employees have become personally involved in the City, joining
and taking active parts in the City's Service Organizations, extending to the Chairmanship of
the Chamber of Commerce.
A truly unique and remarkable company. EDCO has my unqualified endorsement.
Yours sincerely,
~
Public Works Director
CRW/mla
April 8, 1999
Office of the City Manager
To Whom It May Concern:
.'232 '10", "'eel
L"""" GmK CA '!Im-"'" EDCO Disposal Corporation (EDCO) has been the City of Lemon
~;~')i("I':)~-:~~'20'1 Grove's exclusive waste collection and recycling company for the past twenty
,-""d years. We are proud to have such a loyal company provide exemplary
""" ,¡ Icmo"-gco,, " us services to our residents.
1"""""""""'/",11"'1""
EDCO's commitment and dedication to providing superior customer
service is unprecedented. Their staff routinely goes beyond the call of duty in
assuring that our residents are satisfied with the level of service they are
receiving. When the City recently conducted a survey with Lemon Grove
residents, 84 percent of the respondents rated EDCO's service as excellent or
very good.
EDCO Disposal Corporation has been the primary force in assisting
the City with compliance of state legislature in diverting 50% of the City's
refuse from landfills by the year 2000. EDCO programs. such as automated
collection. curbside recycling, yard waste collection. the silver bag program for
senior citizens, multi-family recycling, and their buy-back center in Lemon
Grove, have all contributed to the City's goal of reaching the 50% diversion
mandate. EDCO provides these services at the lowest cost possible. and
because of this, the City of Lemon Grove has one of the lowest residential
collection rates in San Diego County.
In addition to EDCO's waste and recycling services. their interest in
being part of the community is commendable. EDCO is always willing to
participate in City community events such as Old Time Days, Plant Lemon
Grove, Clean-up Day, and the City's nationally recognized Paint Lemon
Grove! These events could not be such a success if it were not for the
support from EDCO Disposal Corporation.
I am confident that EDCO can provide the same level of excellent
customer service in your city. If you would like to discuss their qualifications
further, please feel free to call me at (619) 464-6934.
Since.rE:!IY'7 /~.
// / ~
/ /' /' / /"
/(,~~-
~rt J. Richardson
~~t~;~ City Manager
City of La Mesa
/\[)¡VIINISTR:\TIVE SERVICES
AprIl 13. 1999
To \Vhom it May Concem:
EDCO Disposal Corporation has provided residential and commercial refuse collection for the City of
La Mesa since the company's formation by Mr. and Mrs. Edward Burr in 1967. For over thirty years,
EDCO has been dedicated to providing the highest quality services to La Mesa residents.
It has been our experience that EDCO representatives and personnel go above and beyond the call of
duty to provide a level of service that is unprecedented. EDCO is still family owned and operated by its
founders Mr. and Mrs. Burr. who take a "hands on" interest in the business. The Burrs are public service
oriented individuals who are held in high regard by La Mesa's elected officials and staff. Their
dedication to customer service is reflected in their staff who is headed by Vice President and Chief
Operating Officer Steve South. The company works closely with La Mesa staffto find solutions to a
variety of issues. EDCO staff. who always perform in a responsible and professional manner. have also
been known to work one-on-one with residents and their neighbors to find solutions to problems and
concerns.
EDCO is always willing to go the extra mile to provide quality services. The company has consistently
demonstrated a commitment to La Mesa by participating in community events such as La Mesa's annual
Cleanup Day and Christmas tree recycling program. In addition, EDCO partnered with the City to
construct the new EDCO Station. This transfer station and materials recovery facility provides a
convenient one-stop-drop site for bulky trash items, yard waste and recyclables. EDCO Station is also the
planned site for a household hazardous waste collection facility.
EDCO Station, along with EDCO's innovative and resourceful programs, have been integral to
La Mesa's success in complying with the state-mandated waste diversion requirements for the year 2000.
EDCO's curbside recycling program, yard waste collection. multi-family recycling and silver bag
program for seniors have madé it possible for the City to reach the 50% diversion goal in advance of the
2000 deadline.
La Mesa's thirty-year relationship with EDCO Disposal Corporation has been mutually satisfying, and I
do not hesitate to recommend EDCO to you. If you would like additional information, please call Carol
McLaughlin at (619) 667-1162. Carol is the individual who has worked most closely with EDCO over
the past several years.
SinCerr.lY. .. ,C¿. ..« I / "7//.','
~ 1JA~IJZr ~v!lß/,
Sandra L. Schultz If
Assistant City Manager J
HI:'" .\LI.L~()"\\'I"'Lï. I'() BOX q37 L\ MES."\. c.~LIFOR:-JI.\ 91944-09:37 / IGIOI 4G3-(;(51 I F'.~X ltil'J¡ Gti7-1 t:11
@P,inled on Recyoled Pape,
Description of EDCO's Service Initiation Experience
Following are details of ED CO Disposal Corporation's experience in service transitions of
municipal contracts tTom other hauling companies. A brief description of old and new
services, obstacles encountered and how they were overcome will be discussed. Two
conversions of municipal contracts the company successfully executed in San Diego
County are used as examples: the City ofEncinitas, converted in January 1992, the City of
Poway, converted in September 1994 and the City ofImperiai Beach at the beggining of
this year. Also addressed is the conversion of two Military Installations: Naval Airstation
North Island and Naval Amphibious Base Coronado. The experience gained tTom these
conversions should be relevant to this RFB. EDCO Disposal Corporation's sister
company, Burrtec Waste Industries, has also gained experience in the conversion of
municipal contracts in Los Angeles, Riverside and San Bernardino Counties. Recently the
cities of Duarte and Bradbury in eastern Los Angeles County converted to Burrtec tTom
another service provider.
The City of Encinitas
The City ofEncinitas was converted to an exclusive municipal contract with EDCO Waste
& Recycling in January 1992. At the time of conversion, two hauling companies held
permits to provide residential and commercial solid waste collection services. EDCO
Waste and Recycling, which is the north San Diego County division of EDCO Disposal
Corporation, held 90% of the residential market and 80% of the commercial waste
collection market. Coast Waste Management controlled the remainder of the commercial
and residential markets. Solana Recyclers, a non-profit organization, provided curbside
recycling service and continued service after the conversion.
Services prior to conversion included:
.
Weekly residential waste collection service
.
Commercial waste collection service
.
Roll-offbox service
. Bi-montWy curbside recycling service
New services implemented included:
. Residential yard waste recycling
. Curbside recycling increased to weekly service
.
Commercial recycling service
Obstacles encountered in the transition included:
Yard waste collection was introduced as a new service. Residential customers were asked
to separate yard waste ITom their trash. This challenge was overcome through a public
education effort of brochures and billing inserts detailing the new program. Site visits by
EDCO Field Representatives were also helpful to further the public education effort. Site
visits were initiated by collection workers identifYing customers in need of further
education.
The introduction of commercial recycling as a new service was challenging to implement
and promote to Commercial Waste service customers. As a new service, commercial
customers were asked for the first time to separate recyclable materials ITom their waste
stream. EDCO Field Representatives visited potential commercial recycling accounts to
provide education on the benefits of implementing a recycling program. Waste audits
were performed, resulting in service adjustments to offset for recycling. Many customers
saw their monthly waste collection fees decrease after implementing recycling programs.
The City of Poway
The City of Poway transitioned Waste Collection and Recycling services exclusively to
EDCO Waste & Recycling in September 1994. EDCO held 33% of the residential market
and a much smaller percentage of the commercial market before award of the RFP.
Services before conversion included:
. Manual and Semi-Automated weekly residential waste collection service
. Residential curbside recycling service
. Residential yard waste recycling service
. Commercial waste collection service
. Roll-Off service
New Services Implemented Included:
. Manual residential waste collection service
. Mandatory commercial recycling service
. Mandatory residential recycling service
Obstacles encountered in the transition included:
With a larger number of permitted haulers, Poway presented a greater challenge than
Encinitas for the transition. At the time of transition five hauling companies were
providing either Commercial or Residential Service within the city. Along with EDCO,
these companies included: Waste Management, Pacific Waste Services, Browning-Ferris
Industries and Coast Waste Management. Cooperation from the other hauling companies
was the greatest challenge, after the contract was awarded. Data provided from the other
haulers was deemed inaccurate when compared to the data in the RFP. The commercial
market in the City of Poway was much less than anticipated. Account information
provided by prior service providers was sometimes incomplete. EDCO Field
Representatives performed site visits to verifY collection frequencies, container quantities
and sizes, as well as billing information. This was a major project, as EDCO was the
smallest player in the commercial market of Po way before award.
Having a small share of the commercial and residential markets, equipment, such as
vehicles and containers, had to be purchased. Most of the their haulers in Poway,
cooperated to sell containers that were in the field. One hauler with a significant
commercial market share did not wish to sell containers; replacement equipment for their
accounts was purchased and delivered by EDCO personnel. Through a major project,
EDCO executed a smooth transition.
Naval Air Station North Island & Naval Amphibious Base
In 1995, EDCO Disposal Corporation converted Naval Air Station North Island and the
Naval Amphibious Base to franchise service. These facilities are located within the City of
Coronado where, the company holds an exclusive waste collection and recycling
services contract. Prior to conversion, the Navy would put the waste collection contract
for both bases out to a bid seeking the lowest price. The Navy's waste collection contract
was converted under EDCO's franchise with the City of Coronado, pursuant to the
Resource Conservation and Recovery Act ("RCRA"). Pursuant to RCRA, federal
facilities must comply with local substantive and procedural requirements respecting the
abatement and control of solid waste. Based on RCRA and citing several federal court
decisions, EDCO would now face another challenge of converting services from another
hauler.
Obstacles encountered in the conversion included:
The conversion of services at the Naval Air Station and Naval Amphibious Base included
the reduction of refuse service through the introduction of Navy recycling. With an
agreement ITom Waste Management to se\1 existing equipment, the challenge would be to
inspect and convert more than 300 dumpsters and ro\1-offboxes on the two bases. In less
than a year's time EDCO had refurbished and painted all of Waste Management's old
equipment to EDCO colors and specifications. EDCO has always taken great pride in the
appearance of its equipment. This obstacle was overcome by the company's philosophy
and dedication of its employees.
At the time of conversion, the Navy was accustomed to choosing its waste co\1ection
contractor based on lowest price and was reluctant to accept conversion to the ITanchise
hauler. EDCO was faced with the challenge of gaining respect ITom the Navy and being
accepted as the new contractor. Having minimal experience providing service to military
installations, the company selected field personnel with solid waste service experience at
the bases employed by previous contractors. The company's dedication to providing
superior customer service, and the experience of its employees, was more than enough to
gain the Navy's respect and provide for a smooth service transition. Attached are
performance evaluations ITom Naval Air Station North Island and the Naval Amphibious
Base supporting these claims.
The City of Imperial Beach
After a long and exhaustive RFP process, the City of Imperial Beach chose to transition
the exclusive waste co\1ection and recycling contract ITom another hauler to EDCO
Disposal Corporation in June 1999. Immediately following the city's decision, EDCO
representatives began working on the transition which was slated for a January 1, 2000
implementation date.
Services prior to conversion included:
.
Automated residential waste co\1ection service
.
Automated residential yard waste service
. Residential curbside recycling service
.
Commercial recycling service
. Multi-family recycling service
.
Commercial waste collection service
New services implemented included:
.
Automated single-stream curbside recycling
. Roll-Off service
.
Street sweeping service
Obstacles encountered in the transition included:
The City of Imperial Beach presented new obstacles for EDCO Disposal Corporation to
overcome as compared to past conversions that the company had executed.
Implementation of new services was a minor obstacle to overcome. Uncharacteristic to
other municipalities in San Diego County, Imperial Beach residents had been utilizing
automated trash and yard waste services for many years. The new contract called for the
implementation of the similar automated services, and required the implementation of
automated curbside recycling which provided for a more user rnendly way of recycling.
This provided for an exceptionally smooth service transition fÌ'om a field operations
perspective.
When efforts to purchase the current haulers residential and commercial customer
database stalled, the company faced a great challenge in the need to build a customer
database on its own. A residential customer database was developed fÌ'om a software
program that recognizes property owners through county tax records. This information
was then cross checked fÌ'om data provided fÌ'om the local water service provider. With
this information, notices were sent to residents to verifY proper billing information. In
addition an extensive amount of public education materials introducing the company.
EDCO field representatives met individually with commercial customers to obtain their
billing information as well as service levels and fÌ'equency. These meetings were also
utilized to increase commercial and multi-family recycling participation.
With a great deal of equipment needed to provide services to the City of Imperial Beach,
EDCO representatives reached an agreement with the city's service provider to purchase
dumpsters and yard waste carts. EDCO's past relationship with this hauler helped
overcome the obstacle of new equipment delivery and old equipment removal. EDCO
Disposal Corporation's commitment in providing superior customer service ensured a
smooth transition in the conversion of the City ofImperiai Beach.
INFORMATION REGARDING PAST AND PENDING LITIGTION
LAW OFFICES
HAROLD J. DELEVIE
INCORPORATED
190 I AVENUE OFTHE STARS, SUITE 400
LOS ANGELES, CALIFORNIA 90067-6006
TELEPHONE (31 0) 277-7490
FAX (3 I 0) 277-8923
E-MAIL HALDELEVIE@AOL,COM
January 7, 2000
Mr. Steve South
EDCO Disposal Corporation
6670 Federal Boulevard
Lemon Grove, CA 91945
Dear Mr. South:
I have served as corporate counsel to EDCO Disposal Corporation ("EDCO") since 1967,
You asked me whether 1 know of (a) any civil actions with governmental agencies now
pending or which have occurred in the past ten years with potential liability or actual damages
greater than $50,000, and (b) any criminal legal actions now pending or which have occurred in
the past ten years, against EDCO or any parent or affiliated company of ED CO or any of
EDCO's key personnel. You told me that ED CO's key personnel are Edward Burr, Sandra Burr,
Steve South, Efrain Ramirez, Dan Gallaher, John Snyder, and George Pedersen. As you know,
ED CO does not have a parent company.
I do not know of any such actions against ED CO or any affiliated company or any key
personnel of ED CO, except for the following action. In 1990 an action was filed in the United
States District Court for the Northern District of California against EDCO alleging a violation in
1983 and 1984 of Section One of the Sherman Act. According to the attached letter from
Charles L. Goldberg, who was one of ED CO's attorneys in the matter, the Government accepted
a plea by which EDCO did not admit to any criminal conduct, and EDCO was sentenced to a
fine to be paid over four years with no interest or penalties.
Sincerely yours,
yL~~,;Jh2/~-cJ'
Harold J. Delevie
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TELEPHONE (619) 685-3003
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TO WHOM IT MAY CONCERN:
In 1990. the Anti-Trust Division of the United States Attomey's Office in San Francisco
was conducting an investigatiü;] rA" the commercial and industrial trash hauling industry in
San Diego County. I and my law tìrm, Goldberg, Frant & Hall represented Edeu Disposal
Corporation (EDCO) in that invt:.>tigati(m.
Subpoenas were served requesting the production of voluminous records and documents.
The compilation of and production of the requested documents would have been a time
consuming and expensive operation as the time period in question was 1983-1984. The
U.S. Attorney made allegations of allocations of customers and restraint of trade in
violation of Section One of the Sherman Act, 15 V.S.C. 1.
While the U.S. Attorney could not identify a single witness or item of evidence against
EDCO, they maintained that they had sufficient circumstantial (not direct evidence)
evidence based on the acts of others to at least charge EDCO. The U.S. Attorney in
charge of the investigation offered a compromise settlement in lieu of charging EDCO and
thereby making them expend considerable money to defend.
The threat of prosecution was a form of legal extortion because the cost of preparing and
defending against such a charge would have exceeded $500,000.00. An economic business
decision was made by EDCO, right or wrong, to resolve the case by way of a stipulated
compromise settlement so as to avoid the extreme expense of litigation and the high
consumption of time by it's employees necessary to present it's defense. However, EDCO
was not willing to admit to any wrongdoing and communicated that to the U.S. Attorney.
SELTZER CAPLAN WILKINS & McMAHON
Page 2
The U.S. Attorney was willing to allow EDCO to plead pursuant to Alford v. No. Carolina
400 U.S. 25 (1970), without admitting to any criminal conduct.
The Government agreed to accept an . ALFORD PLEA' which set forth on the record that
the Settlement and Plea were not based on admissions of any wrongdoing by EDCO or
by any of it's principals, but instead on a desire to avoid the expense and time that would
be lost if the case was to be defended.
Accordingly, a olea pursuant to Alford v. No. Carolina, suora was entered into the U.S.
District Coun for the Northern District of California in January 1991 by Ronald M. Frant,
one of the attorneys who was representing the corporation. The plea agreement provided
for immediate sentencing of a fme to be paid over four years with no interest or penalties.
Charles L. Goldbe
Of Counsel
SELTZER CAPLAN WILKINS & McMAHON
A Professional Corporation
CLG:dd
7810.4770/lc/g
Key Personnel
for the
City of Tustin
Integrated Solid Waste Management Services
Company Historv
On!anization Chart for City of Tustin
Job Descriptions
Resumes of Kev Personnel
Orange County Division - Drivers and Field Personnel
Mr Edward G Burr - President Chi4 Exemtive Offìœr
Ms Sandra L. Burr - Viœ Pres/dell! Chief FllIancial Offìœr
Mr Steve South - Viœ President Chief Operating Offìœr
Mr Efrain Ramirez - Viœ Presidell! General Manager
. Mr Daniel G. Gallaher - Controller
Mr John Snyder - Direc;tor (!fField Serviœ
Mr George Pedersen - Direc;tor of Public; Affairs
EDCO Disposal Corporation
A Soli/hem California SUCCI'SS S/OIY
Founded in 1967 by the company's sole shareholders, Edward and Sandra Burr, EDCO
Disposal Corporation began operations as the franchised solid waste hauler for the City of
La Mesa, in San Diego County, California. At the time of incorporation, the Southern
California refuse industry was dominated by a number of independent, small haulers who
had similar size operations and served as the exclusive service providers for a very limited
number of juris dictions
Through astute management and an unparalleled commitment to provide superior
customer service, EDCO began a series of acquisitions of other family owned operators in
the San Diego County area who, after discovering no means of self perpetuating their
business, still desired to ensure that their focused efforts would be continued as a non-
publicly traded entity This allowed for an unprecedented growth period for the company
in which operations ultimately expanded into five Southern California Counties, including
the formation of a sister company, Burrtec Waste Industries
Today, EDCO and Burrtec collectively account for the largest family held solid waste
company in California, and are estimated to be the eighth largest overall in the United
States. In an industry that appears dominated by consolidation, the active and involved
ownership of the company offers the ability to act quickly, creatively and responsibly,
while investing the necessary resources to solve challenging waste and recycling
equations With EDCO headquarters in the San Diego region, and a sophisticated
continuation plan in place, the company has aggressively embraced its unique role as a
family owned and operated premium service provider that is firmly committed to
innovation and market development.
One key aspect of the company's success has been the ability to successfully respond to a
number of evolving Federal, State and local mandates, including the California Integrated
Waste Management Act of 1989 (AB 939), the Comprehensive Environmental Response,
Compensation and Liability Act of 1980 (CERCLA) and the Resource Conservation and
Recovery Act (RCRA). Although these actions dictated a tremendous investment to
minimize the amount of waste disposed of in an efficient manner, the company formulated,
invested and implemented a number of successful collection, processing and marketing
programs designed to achieve these mandates
Today, the collective companies have sited, developed and operate eight different Material
Recovery Facilities throughout Southern California, and anticipate the opening of a ninth
later this year These innovative diversion facilities have been recognized at the national,
state and local levels as being environmentally responsible, as well as extremely effective
at recovering commodities and preserving precious natural resources
Current recycling collection, processing and marketing programs in the twenty-four
Southern California communities served by EDCO include commingled single family and
multi-family residential, source separated single family and multi-family residential,
commingled and separated commercial, and commingled and separated industrial
Programs have been designed with the intent of increasing particip¡;tion through
convenience, education and the ability to tailor specific programs for various jurisdictions
Throughout Southern California, the company has aggressively implemented all of these
programs and currently operates five recycling facilities including EDCO Recycling 1 & 11
in Lemon Grove, EDCO Recovery & Transfer in San Diego, Fallbrook Recycling &
Transfer, San Marcos Recycling in San Marcos and EDCO Station in La Mesa Through
facilities such as these, all cities that the company serves have currently achieved the initial
AB 939 diversion level of 25% and are well positioned to reach the 50% level by the year
2000
With a committed, focused and localized effort, the company has achieved its continued
growth through the loyal determination of this outstanding team.
With the advent of a new millennium, EDCO looks forward to continuing to provide
innovative waste collection and recycling solutions as it strives to achieve its Mission
Statement
O/lr missioll is to ~ffÌ<;iently serve the waste collection. di.'posal and recycling need- oj'
o/lr c/lstomers while ens/lring a safe and rewarding career/;,r o/lr employees.
We will ach,e1'e this oh¡ective in a professional, innovative manner that conslstemry
,¡'splays o/lr IIItegrity and gelll/lne commitment to provide s/lperior customer sen'ice.
Recycling Today For a Better Tomorrow
EDCO Disposal Corporation
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Job Descriptions
As a family owned and operated company, EDCO utilizes a unique, direct involvement
approach to serving its valued customers. The company's key personnel and their
respective job descriptions are extensive. although EDCO would respectfully submit that
this is reflective of the organization's total commitment to exceed the expectations of the
City of Tustin
Also of note is the key role that EDCO's drivers and field personnel play in the ability to
exceed the requirement of the City, which displays the company's commitment to provide
superior customer service. As such, drivers and field personnel have been included in this
listing, positioned accordingly in the organization chart and reference order
Team members in the positions listed, as well as any employee, would be available to meet
"ith the City to discuss any issue during the term of the contract. This is the result of both
the company's commitment and its main truck terminal in Buena Park In addition, it
should be noted that EDCO has provided similar service and personnel support as the
franchised solid waste collector in nearby Buena Park and La Palma
Drivers and Field Personnel - Provide daily collection of all recyclables, green waste and
\!unicipal Solid Waste for respective mechanized and manual collection customers
Collectors are a direct point of contact with the general public and represent the most
identifiable element of company commitment to provide superior customer service
President - Oversees overall direction of the company and provides the vision for short
and long term planning for collection, recycling and transfer operations. Serves as a
spokesperson and liaison for company with a variety of groups including, but not limited
to, elected ofiicials, industry experts and lending institutions
Chief Financial Officer - Oversees all aspects of financial department including lending
institutions, accounts payable and payroll Serves as a liaison for the company with a
\'ariety of civic groups and lending institutions.
Chief Operating Officer - Oversees all aspects of planning and execution of company
goals, as well as daily operations of collection, recycling and transfer operations Serves as
a spokesperson and liaison for the company with a variety of groups including, but not
limited to, elected officials, City staff, and industry experts
General Manager - Responsible for all collection service, including residential,
commercial and industrial routes, as well as special services. Also oversees vehicle
maintenance, container maintenance and facility maintenance departments.
Controller - Directly oversees preparation of the financial statements, reviews all
company expenditures and formulates all rate calculations I adjustments. Serves as liaison
for the company with City stafllending institutions and outside accounting firms
Director of Field Service - Responsible for Field Service Representatives who directly
interact with customers on site regarding implementation of diversion programs, unique
collection scenarios, as well as community relations Oversees the Field Representative
assigned to the City of Tustin as a direct liaison.
Director of Public Affairs - Responsible for all fliers, inserts and publications creåted by
the company to encourage increased diversion activities This includes the quarterly
publication of the Environmental Times that is distributed to all residential customers.
Drivers and Field Personnel
Orange County Division
EDCO Disposal Corporation
Drivers and field personnel playa critical role in the successful collection, processing,
transfèr and disposal operations. EDCO Disposal Corporation provides for a number of
Southern California communities The vast majority of these employees, after starting in
entry level positions, have been promoted to drivers A great number of our employees
and their families live in the communities EDCO serves
The average length of company employment in the Orange County division that would be
serving the City of Tustin is twelve years, including several twenty plus year employees
This continuation and resulting familiarity with operational nuances speaks volumes about
EDCO's commitment to provide superior customer service. Knowledge of the
jurisdiction's infrastructure, unique operating conditions and special customer service
considerations are all further enhanced with the institutional knowledge that long term-
team players possess
Satèty is a priority with all EDCO employees, especially those operating moving
equipment on public right of ways Each driver is provided with annual training and
monthly meetings from the Safety Manager, as well as an extensive safety manual In
addition, ongoing guidance is provided from experienced Field Supervisors, each of whom
were also promoted from a driver position. This key insight from Field Supervisors
becomes all the more valuable given the fact that each has personally driven many of the
routes in place today
This seasoned group of professionals, their ongoing commitment to customer service and
a focus on safety has been the foundation for providing integrated solid waste solutions for
a number of communities, including the nearby cities of Buena Park and La Palma In
addition, this effort has been rewarded with hundreds of complimentary letters from
satisfied residential, commercial and industrial customers
The esprit de corp of this proud group has also resulted in an extensive waiting list for
employment into the organization. As the company continues to grow, EDCO remains
committed to promoting from within. This has resulted in outside employees often
accepting entry level jobs in order to join the EDCO team and advance internally.
Mr. Edward G. Burr
President
EDCO Disposal Corporation
After entering the industry in 1954 as an owner/operator of a single truck, Mr Burr has
developed EDCO Disposal Corporation and its sister company Burrtec Waste Industries,
into one of the largest family owned and operated waste collection and recycling firms in
the United States He and his wife Sandra remain the sole shareholders of the company
and reside in Southern California
In serving five Southern California counties, Mr. Burr has emerged as an innovative leader
in developing efficient methods of source separated automated collection, Material
Recovery Facility operations and marketing. Most importantly, as both the waste
collection and recycling industry have evolved, he has ensured that all employees share his
genuine commitment to provide superior customer service.
In serving as the Chairman of the Board for both firms, Mr Burr oversees the integrated
waste management needs of a number of Southern California communities.
Participation Includes
.
Past member of the Board of Directors of the National Solid Waste Management
Association
Former Governor Reagan appointee to the California Solid Waste Advisory Council,
the forerunner of the California Integrated Waste Management Board.
Past President of the California Refuse Removal Council
Member .::>f the California Disposal Association, Orange County Solid Waste
Association, San Bernardino - Riverside Disposal Association, and the San Diego
County Disposal Association.
Awarded -
The 1994 John Moscone Award by the California Refuse Removal Council for long term
exemplary commitment and dedicated service to the waste industry
A 1996 inductee into the Environmental Industry Association Hall of Fame
Mrs. Sandra L. Burr
Vice President / Chief Financial Officer
EDCO Disposal Corporation
Mrs Burr entered the industry in 1967 and has subsequently developed EDCO Disposal
Corporation and its sister company Burrtec Waste Industries, into one of the largest family
owned and operated firms in the solid waste industry. Today, the combined annual
revenues of the companies exceed one hundred million dollars. She and her husband,
Edward, remain the sole shareholders of ED CO and reside in Southern California
In serving five Southern California counties, Mrs Burr oversees all aspects of the
combined organizations' tìnancial operations She provides direction in all aspects of
accounts payable, accounts receivable, financial planning, franchise fees and related
government payments, payroll and reporting functions
In her unique role, Mrs. Burr oversees the financial impacts associated with the integrated
waste management needs ofa number of Southern California communities
Participation Includes
.
Member of the California Disposal Association, Orange County Solid Waste
Association, San Bernardino - Riverside Disposal Association, and the San Diego
County Disposal Association.
Active supporter of the Alpha Chi Omega Foundation.
Active charitable supporter of a number of worthwhile San Diego causes, including
65 Roses, American Diabetes Association, Circle of Life Foundation, Camp Able for
Children, Cystic Fibrosis Foundation, Fallbrook Hospital Foundation, Fresh Start
Surgical Gifts, Grossmont Hospital Foundation, Home of Guiding Hands, Make a
Wish Foundation, March of Dimes Birth Defects Foundation, Muscular Dystrophy
Association, National Multiple Sclerosis Society, San Diego Center for Children and
Scripps Hospital Foundation.
Attended San Diego State University
Mr. Steve South
Vice President / Chief Operating Officer
EDCO Disposal Corporation
Atìer an extensive experience in the transportation industry, Mr South joined EDCO
Disposal Corporation in 1993 as Director of Service. The following year, he was
promoted to the position of General Manager of San Diego County operations and in
1995, was named Vice President and Chief Operating Officer for the entire company. He
and his wife Tracy reside in Southern California
In his duties, Mr. South is responsible for all EDCO operations in Los Angeles County,
Orange County and San Diego County, including refuse and recycling collection,
processing / marketing / transportation of recyclables, customer service, inter-
governmental affairs, market development, transfer and transport operations In addition,
he has directly overseen the development, financing, technology design and construction
offour new Material Recovery Facilities.
Participation Includes:
Immediate Past President of the San Diego County Disposal Association
Member, California Refuse Removal Council Board of Directors
.
Member, California Disposal Association, Solid Waste Association of Orange County
and San Diego County Disposal Associations
Currently serving under special appointment by the San Diego County Board of
Supervisors as a Member of the Hearing Panel of the Local Enforcement Agency
Past President National City Chamber of Commerce, Board of Directors Boys and
Girls Clubs, Board of Directors Christmas in July
Awarded -
Ofiìcially recognized by the United States House of Representatives, the State of
California Senate and Assembly, the County of San Diego and the Port of San Diego for
outstanding business leadership and community support
Mr. Efrain Ramirez
Vice President / General Manager
EDCO Disposal Corporation
Mr Ramirez originally joined the company as a helper in 1972 and after a series of
advancements, was named a Field Supervisor in 1979. After ten productive years, he as
named Operations Manager and then in 1992, was promoted to General Manager for all
Orange and Los Angeles County Operations In 1997, he was also named a Vice President
for EDCO Disposal Corporation He, his daughter Mary Ann, his son Maurice, his son
Efrain, his daughter Alexandra all reside in Orange County
In his duties, Mr Ramirez is responsible for all EDCO operations in Los Angles County
and Orange County, including refuse and recycling collection, customer service, inter-
governmental affairs, market development and municipal contract administration. This
includes, but is not limited to, oversight of exclusive franchises in the cities of Buena Park,
La Palma and Signal Hill, as well as a number of other permitted areas
Participation Includes:
Current President of the Solid Waste Association of Orange County
.
Current Vice President of the California Disposal Association
Member, Board of Directors of the California Refuse Removal Council
Member, Board of Directors of the La Palma Chamber of Commerce
.
Member Board of Directors of the Buena Park Chamber of Commerce
Member, Board of Directors for the La Palma Foundation.
Awarded -
Formally recognized by the cities of Buena Park, La Palma and Signal Hill for business
leadership and civic participation
Recognized by the Boys and Girls Clubs of Buena Park for continuing support
Mr. Daniel G. Gallaher
Corporate Controller
EDCO Disposal Corporation
After working in a similar position for a large importer / wholesaler, Mr Gallaher joined
EDCO Disposal Corporation as Controller in 1992 His background in accounting and
information management systems have allowed EDCO to significantly enhance it's ability
to promptly access data related to the waste collection and recycling industry. He, his wife
Cindy and daughter Sara reside in Southern California
His oversight includes all aspects of financial reporting in various operations, including
waste collection / transfer / transportation, recycling collection / processing / marketing /
transportation / California Redemption Values, cost management, risk assessment, and
analysis Under his leadership, the company has secured long term financing for a number
of innovative recycling programs and facilities through the California Pollution Control
Financing Authority that are designed to achieve the landfill diversion goals of the
California Integrated Waste Management Act of 1989 (AB 939) In addition, he also
oversees the billing system, as well as the account management system at the company's
'\!aterial Recovery facilities
'\If Gallaher has integrated waste collection and recycling rate making and financial
reporting responsibilities for a number of Southern California communities
Participation Includes
Past Member of the American Institute of Certified Public Accountants
.
Past Member of the California Society of Certified Public Accountants
Graduate of Pepper dine University in Business Administration / Accounting
Certified Public Accountant since 1985.
.
Founding Member and Treasurer of Phi Zeta Chi.
Active supporter of Boys and Girls Clubs.
Mr. John Snyder
Director of Field Services
EDCO Disposal Corporation
Mr Snyder is currently serving in his fifteenth year with the company After serving in a
variety of roles, including driver, helper, operator and field representative, in 1997 Mr
Snyder was named to his current position as Director of Field Services As a member of
the Burr family, he resides in Southern California
He is directly responsible for the oversight of specific field representatives assigned to
each franchise Through the diligent efforts of field personnel, the company has
aggressively implemented a number of award winning, cost effective diversion programs
enabled by personal customer contacts.
Me. Snyder has served as a Board Member of the California Disposal Association and the
San Diego County Disposal Association. In addition, he is a current member of the Board
of Directors for the Coronado Chamber of Commerce
Mr. George Pedersen
Director of Public Affairs
EDCO Disposal Corporation
Mr George Pedersen joined EDCO Disposal Corporation in 1991 as a Recycling Field
Representative, bringing with him a decade of valuable experience gained in the
distribution and processing industry In 1994, he was promoted to his current position as
Director of Public Affairs A native San Diegan, he resides with his wife Mary and son
Ansel in Southern California
In his duties, Me. Pedersen is responsible for all EDCO public education efforts, including
scheduling public forums with the residential and commercial sectors, school presentations
and hosting tours of various recycling facilities in Los Angeles County, Orange County
and San Diego County. In addition, he produces all printed material for the company,
including the award winning Environmental Times quarterly residential newsletter as well
as brochures designed to maximize participation in specific diversion programs
He is currently a member of the Citizens Advisory Committee to the San Diego
Association of Governments (SANDAG) and is a member of the California Resource
Recovery Association. In addition to his BA from San Diego State University in English
with emphasis on Technical Writing, Me. Pedersen has also completed a professional
certificate program at the University of California at San Diego in Integrated Waste
Management and received a professional certificate in Technical Writing from San Diego
State University
FINANCING PLAN
As discussed in the letter trom Wells Fargo, EDCO secured a credit facility based on long-term tax-
tree bond financing in October 1996. Funds trom bond proceeds have been disbursed for fleet
replacement and purchase of vehicles and carts for automated collection of rubbish, yard waste and
recyclables as well as for the development and construction of recently opened transfer station
MRF's in San. Diego County. Additional bond proceeds remain available for investment in new
collection vehicles, bins, automated carts, sorting facilities and equipment as well as fleet
replacement and other capital requirements.
The capital requirements of the Tustin contract are projected to be approximately $4,500,000 and
will be funded tTom remaining bond proceeds. Revenues tTom the Tustin Contract are projected to
be approximately 7% ofthe Company's total revenues.
Credit terms with customers result in accounts receivable turnover in under 45 days while payment
terms with vendors result in accounts payable turnover in under 45 days.
EDCO has long term contracts to collect commercial rubbish, residential rubbish, yard waste and
curbside recyc1ables, and to process recyclables for the cities of Buena Park and La Palma in
Orange County, Signal Hill in Los Angeles County, La Mesa, Lemon Grove, National City,
Coronado, Imperial Beach, Poway, San Marcos, Vista, Encinitas, and Solana Beach in San Diego
County, and Rialto in San Bernadino County.
In addition, EDCO collects all of the rubbish for the Orange County Fairgrounds, California State
University, Fullerton, Veterans Administration Hospitals in Los Angeles County as well as the u.S.
Navy at North Island and NAB, Coronado in San Diego County and all of the rubbish, yard waste
and recyclables for the San Diego City School District. EDCO hauls for the County of San Diego,
the State of California, the Port District of San Diego as well as thousands of commercial customers
in the cities of San Diego, Long Beach and the unincorporated areas of San Diego County, Los
Angeles County and San Bernadino County.
~
WELLS FARGO BANK
STEVEN L. PETERSON
Vice Pce"dent
1120KS'cee'
Mode"o. CA 95354
Jan 6, 2000
City of Tustin
Public Works Department
300 Centennial Way
Tustin, California 92780
Re:
Financing Plan for EDCO DISPOSAL CORPORATION (EDCO) relative to a Request
For Bids for Integrated Waste Management Services for the City of Tustin.
Gentlemen:
On October 16, 1996 Wells Fargo Bank provided a letter of credit to support $24,000,000 in tax
exempt bonds issued through the California Pollution Control Financing Authority, for the
benefit of EDCO. The bond proceeds have been allocated for (a) the acquisition, construction,
rehabilitation, installation, improvement and equipping of certain solid waste disposal facilities,
(b) the acquisition of certain equipment and rolling stock. The assets acquired with bond
proceeds are located in San Diego, San Bernadino, Orange and Los Angeles counties.
Analysis for the bond financing and underlying letter of credit included economic and
engineering feasibility studies for automated rubbish, yard waste and recyclables, collection
vehicles, transfer stations and facilities designed to process single stream recyclables. Overall,
Wells Fargo Bank and the state of California concurred with the affirmative recommendations of
the engineering and feasibility studies.
Wells Fargo Bank has reviewed EDCO's certified annual financial statements for the past five
years and understands the company's operations and industry. EDCO has met all of their past
financial obligations to Wells Fargo Bank and the bondholders. Based on their satisfactory past
financial performance combined with their processing facilities, I am not aware of any
impediments that would prevent EDCO from fulfilling any reasonable financial requirements
under a contract with the City of Tustin.
Please feel free to contact me with any questions (209) 578-686 I.
SinCer~IY,. /.L
A~lpC;/-
Steve Petersen
cc: Steve South
Pcioted " Recy,'ed Pope,
Section V
Proposed Services
Refuse Collection
Recyc1ables Collection
Yard waste Collection
Special Services
Disposal, Transfer and Processing Facilities
Operating Facilities
Implementation Plan
Customer Service and Billing
Hazardous Waste Management Component
Public Education
EDCO Disposal Corporation
Proposed Integrated Solid Waste Management Services
for the City of Tustin
ProDosed Services
Refuse Collection
Single Family Residential Refuse Collection, including duplex and triplex residents, will
be provided by EDCO on a weekly basis on the same day as yard waste and recycling
service. Through both a strong initial and continuing public education effort by EDCO,
customers will be given one ninety six gallon cart with an option to obtain additional
refuse containers for an additional fee.
Customers may also exchange the ninety six gallon cart for a smaller thirty five or sixty
four gallon size cart at no additional charge. EDCO will purchase new cart inventory for
all sizes of refuse, yard waste and recycling carts and will be responsible for replacing lost,
stolen or damaged carts. At the end of the term of the Franchise Agreement, the City will
own the carts.
Similar to the implementation of automated collection in other communities, only the
refuse placed inside the container will be collected. However, as described under the
Special Services section of this document, residents will also be offered an On-Call Bulky
Item Collection service two times per calendar year. Through consistent billing and
newsletter reminders regarding the availability of a pre-scheduled Bulky Item Collection,
customers will adapt to placing all refuse for collection inside a container.
Similar to automated recycling and yard waste collection, on the designated service day
refuse carts will be placed curbside with the wheels against the curb/walk area ready for
weekday collection after 7 a.m. Carts will be equipped as specified in the draft Franchise
Agreement.
Each cart for refuse, recycling and yard waste will be numerically hot stamped with an
identification code and linked to a specific residence through EDCO's in house
billing/routing computer system. In addition, the identification markings listed in Section
4.5.3.1.7 will also be hot stamped on each cart in white color.
Automated single family residential refuse collection will be served by EDCO vehicles
operated by a single person and using the advanced Volvo Expediter three axle chassis,
powered by the environmentally fiiendly VE- 7 engine. The current model year 7 liter
engine proposed by EDC'O has less exhaust emission than the more traditional 10 liter
engines used in refuse vehicles and has been certified by both the State of California Air
Resources Board and the United States Environmental Protection Agency Certificate of
Conformity
These collection chassis will carry a Heil Rapid Rail Automated body. This unit features
an automated packing system, as well as state of the art arm flexibility that minimizes
possible cart and hopper refuse spillage. All collection units will be painted white with a
burgundy stripe and will have accompanying signs clearly distinguishing the company
name and telephone number. The collection vehicles used for residential refuse, yard waste
and recycling service are all anticipated to be based on this chassislbody combination.
After collection, single family residential refuse collected via automated service and
subject to source separation of green waste and commingled recycling will be directly
driven to the Frank R. Bowerman Landfill near Irvine for final disposal. Additional
discussion on this site follows later in the Facilities section of this document.
Multi-Family Residential Automated Cart Service, for those locations having four or
more units, will be provided assuming such collection is operationally feasible and
permitted by the City. The same cart size and specification parameters as outlined for
single family service would apply.
Should automated cart service not prove feasible due to road or storage conditions, the
option of bin service will be reviewed as highlighted later in this section. In the event that
neither cart nor bin service is feasible, manual can service will be provided as discussed
later in this document.
After collection, multi-family residential refuse collected via automated service and subject
to source separation of green waste and commingled recycling, will be directly driven to
the Frank R. Bowerman Landfill near Irvine for final disposal. Additional discussion on
this site follows later in the Facilities section of this document.
Commercial and Industrial Automated Cart Service will be provided to those small
volume generating customers who desire this type of collection as an alternative to the
traditional bin service EDCO will provide the appropriate size container to these
customers as feasible, based on the volume of MSW generated, as well as the road and
storage conditions.
Source separation of this stream will be heavily encouraged and aggressively pursued
Thus after collection, commercial and industrial automated cart service will be directly
driven to the Frank R Bowerman Landfill near Irvine. Additional discussion on this site
follows later in the Facilities section of this document.
Multi-Family, Commercial and Industrial Property Bin Service will be provided by
EDCO at least one time per week, or more ti-equently depending upon volume generation.
These locations will be offered the option of two, three or four cubic yard containers to be
serviced up to seven days per week, depending upon volume requirements.
As discussed later in the Recycling Collection section, the EDCO Field Representative
assigned to Tustin will work closely with each business, property owner or site manager to
ensure that increased participation in the accompanying recycling and/or yard waste
diversion program minimizes the number of collection stops required and thus reduces the
overall refuse fee for the complex.
In this manner, sites that may currently be collected three times per week will find that two
time per week refuse collection, utilized in conjunction with an effective diversion
program that is clearly communicated to the respective participants, will provide adequate
capacity
Similar to the single family residential outline, a Volvo Expediter chassis with the V - 7
engine is anticipated to be used for this process in conjunction with a California Welding
Service (CWS) body. After a detailed review of the operating conditions surrounding alley
movements and enclosure roll-outs, both the Multi-Family Residential and the Commercial
refuse stream will be collected primarily by two person teams.
As with all vehicles associated with the terms of this Agreement, collection units will have
two way radio communication with a centralized dispatcher with immediate access to
EDCO's in-house billing/routing system. In this manner, any service changes can be
immediately relayed from the customer to the customer service department through the
dispatcher to the driver in the field.
All bins will be cleaned or replaced once per year at no additional charge to customers.
EDCO consistently strives to enhance its overall image through the positive presentation
of this field equipment.
After collection, multi-family, commercial and industrial refuse will be taken to a mixed
waste processing facility and then subsequently transferred to the Alpha Olinda Landfill
near Brea for tinal disposal Additional discussion on this site follows later in the Facilities
section of this document.
In this manner, even material that has been subject to source separation has the ability to
be sent to a mixed waste processing facility, thus increasing diversion for the City. The
rates reflected in Attachment Three account for the recovery and should range as high as
30% of this stream at the facility, in addition to the 20% diversion produced by source
separated recycling services described later in this section.
Manual Can Service will continue to be provided to single family, multi-family and
commercial customers where neither automated cart nor bin service is feasible. For
commercial customers, a limit of200 pounds of refuse per week will be enforced.
After collection, manual can service refuse will be taken to a mixed waste processing
facility, where recoYery should range as high as 30%, before being transferred to the
Alpha Olinda Landfill near Brea for final disposal. Additional discussion on this site
follows later in the Facilities section of this document.
Temporary Bin and Roll-Off Refuse Service will be provided by EDCO throughout the
City on an "As Needed" basis. By simply calling the EDCO customer service department,
residents or businesses may order, and will receive, either of these services as requested.
For both of these types of service, EDCO will allow customers to utilize the containers for
up to seven calendar days before retrieval of the equipment. Customers requiring
additional time will be allowed to make special arrangements through the Customer
Service Department at a nominal fee. An adequate inventory of the graffiti free containers
required for both temporary bin service and roll-off service will be available. Those
customers requiring self contained compactor service shall be charged a premium of 150%
the base roll-off pull charge.
Financial incentives to roll-off customers will be created so that source separation should
be stimulated for wood, green material, asphalt and concrete. In this manner, customers
will be able to take advantage of reduced tip fees by participating in source separation
rather than mixed waste processing. By actively pursuing source separation supported by
financial reductions over mixed waste processing tipping fees, this should produce an
additional diversion in the range of25% for this waste stream.
After collection, temporary bin and non-source separated roll-off refuse will be taken to a
mixed waste processing facility, where recovery should range as high as 30%, before being
transferred to the Alpha Olinda Landfill near Brea for final disposal. Additional discussion
on this site follows later in the Facilities section of this document
City Facilities Collection will be provided by EDCO based on the approved rate schedule
for all owned and/or operated sites. The current listing of these sites has been noted in
Exhibit 2 of the Franchise Agreement, although EDCO understands that the number of
containers and their locations may be changed by the City.
As part of the plan to achieve the goals of the California Integrated Waste Management
Act of 1989 (AB 939), EDCO will provide recycling containers whenever feasible at these
facilities to the City at no additional charge. In addition, a green waste roll-off box will be
placed at the City yard and served at no additional charge.
After collection, non-source separated debris £Tom City facilities will be taken to a mixed
waste processing facility, where recovery should be as high as 30%, before being
transferred to the Alpha Olinda Landfill near Brea for final disposal. Additional discussion
on this site follows later in the Facilities section of this document.
Abandoned Item Collection in the streets and alleys will be provided by EDCO on an as-
needed basis as determined by the City. This service will commence in the designated area
within 48 hours of notification !Tom the appropriate City agent and will be provided at no
additional charge.
For this function, the EDCO Field Supervisor for Tustin, who will be available through
telephone and voice pager, is the immediate contact for the City. As necessary, the City
will contact the Field Supervisor to outline which areas require Abandoned Item
Collection
In response, within 48 hours of notification, EDCO will remove the noted debris through
the use of a specially modified, one person vehicle. This unit has adequate storage area for
bulky items, as well as a lift gate for easy access
As collected, every attempt will be made to divert from final disposal items such as
couches, mattresses, bicycles, etc, through a number of charitable groups and not-for-
profit agencies
In addition, EDCO will place a roll-off box at the City yard for abandoned items that are
collected by City crews. This service will be provided at no additional charge to the City.
Material not diverted in the above described manner will be directly driven to the Frank R.
Bowerman Landfill near Irvine for final disposal. Additional discussion on this site follows
later in the Facilities section of this document
RecvcIables Collection
Single Family Residential Recycling will be collected by EDCO on the same day as
refuse service and will utilize a commingled automated program. In this program, each
single family resident, including those of three dwelling units or less, will be provided a
ninety six gallon automated cart for collection of recyclables
Those customers needing additional recycling capacity will be offered additional carts !Tee
of charge, while smaller size sixty four gallon containers will also be available for space
considerations In addition to an extensive public education program during
implementation, and continuing throughout the term of the Agreement, each cart will have
a distinguishing color !Tom the other source separated containers.
By creating a convenient, effective way to recycle through commingling of all goods,
participation should be high. In addition, commingled programs have also been proven to
decrease issues associated with scavenging of curbside recycling programs. Given that all
revenues gained from the sale of the material will remain with EDCO, a financial incentive
has been put into place which encourages the company to increase participation and
accept new commodities
Acceptable commodities in the program will include, but will not necessarily be limited to.
glass, tin, aluminum, PET, HOPE, narrow-neck plastics, newspaper, mixed paper
(including junk mail, telephone books and magazines), metal coat hangers and cardboard.
Given the evolving nature of recycling, as well as proposed legislation currently under
consideration, it is very realistic to assume that this list will continue to expand during the
life of this Agreement
Similar to the residential refuse program, a Volvo V - 7 powered chassis with a Heil Rapid
Rail body driven by one person will be used to collect the material. After collection,
source separated commingled recyclables will be taken to CR&R for processing.
Additional discussion on this site follows later in the Facilities section of this document.
Multi-Family Recycling will be provided at no additional charge to all customers
requesting this service Through the use of bins or automated carts as applicable, EDCO
will offer collection of the same commodities as the single family dwelling units.
Through an aggressive and continuing public education program, increased participation
will be strongly encouraged to the point that additional service will be made available to
complexes, all at no additional charge. EDCO will notifY all multi-family customers
annually about the availability of these programs, as well as provide public education
support to complex owners/site managers. This program awareness should provide a
consistent diversion effort in the multi-family stream.
This is especially true of larger sites that have the opportunity to reduce refuse service
levels through the availability of an unlimited amount of recycling capacity This financial
incentive, as reflected in the accompanying rate structure, should produce motivated
owners/site managers and stimulate ongoing program participation.
After collection, source separated commingled recycling will be taken to CR&R for
processing. Additional discussion on this site follows later in the Facilities section of this
document.
Commercial Recycling will offered at no additional charge to all generators in this waste
stream through a commingled collection program. Customers will be offered their choice
of two, three or four cubic yard bins, or sixty-four or ninety gallon automated carts, for
use in a fully commingled program. Acceptable commodities include, but are not limited
to: mixed office paper, cardboard, newspaper, scrap metal and cans, glass, PET plastic,
HOPE plastic. all narrow-neck plastics and scrap lumber (depending upon volume, scrap
lumber may be collected separately so as to avoid fiber contamination)
With no additional charge for this service, a price incentive is created that will encourage
participation in these programs. This is especially true for refuse generators being
collected more than once per week who may find that the expanded commercial recycling
program offers the opportunity to reduce refuse service and experience the rate savings
outlined.
As has been discussed, continued awareness of the availability of recycling programs is
critical and, as such, dictates that EDCO notifY all customers annually of the existence of
the service. Given that the commodity value fTom the program remains with the hauler,
EDCO views this public education as an investment in achieving greater volumes and
higher quality material. Commercial generators will have the option of diverting the same
commodities outlined in the single family recycling program.
The collection vehicles used for this program will vary depending upon the container
utilized. Automated carts may be collected by either the residential recycling collection
unit or a dedicated recycling front end loader. Both trucks will be operated by one person
and will utilize similar equipment as . described in the residential and commercial refuse
sections. In addition to the EDCO emblem, all bins will have a second decal identifYing the
types of materials eligible for disposal.
The combination of the financial incentives and continuing public education should
produce source separated diversion from the multi-family and commercial recycling stream
in the range of an additional 20%.
After collection, source separated commingled recycling will be taken to CR&R for
processing. Additional discussion on this site follows later in the Facilities section of this
document
Construction Waste Recycling will be implemented by making a reasonable effort to
divert source separated construction waste to reuse facilities. This includes commodities
such as wood, green waste, dirt, concrete and asphalt
Similar to other aspects of the overall diversion program, public education remains a
critical component to the success of recycling this stream. As such, building contractors
will be contacted and educated about the available recycling services.
Financial incentives to roll-off customers will be created so that source separation should
be stimulated for wood, green material, asphalt and concrete. In this manner, customers
will be able to take advantage of reduced tip fees by participating in source separation
rather than mixed waste processing.
After collection, source separated construction recycling will be taken to a number of
residue facilities including Tierra Verde Industries, near Irvine. Additional discussion on
this site follows later in the facilities section of this document
Mixeil Waste Recycling will be performed at a Material Recovery Facility (MRF) on all
refuse from multi-family, commercial and industrial customers that do not participate in a
source-separated recycling collection program. Consistent with Section 42.5 of the draft
Franchise Agreement, mechanized processing of this MSW will achieve a minimum 15%
diversion rate and will range as high as 30% recovery of this stream.
In order to gain operational efficiencies, the option exists to send all bin service material
through a mechanized processing for diversion. Although the increased sorting costs
impact the ultimate disposal rate, there is an increased operational benefit of eliminating
separate collection of MSW for participants of a source separated recycling program. In
this manner, diversion would further be enhanced through the combination of mixed waste
processing as well as a fully implemented source separated recycling program.
Additional information on the mixed waste processing site is discussed later in the facilities
section of this document
Yard Waste Collection
Single Family Residential Yard Waste Collection will be performed on a weekly basis
on the same day as refuse and recycling service. Each single family unit, including duplex
and triplex occupants, will be provided with a single ninety six gallon automated yard
waste cart.
Those customers who may have space constraints can downsize to a sixty four gallon cart.
Conversely, those customers requiring additional yard waste capacity will be provided
with extra ninety six gallon carts at no additional charge. In addition, EDCO will also
collect an unlimited number of tied bundles of yard waste up to six feet long, four feet in
width and fifty pounds in weight that are set out next to the automated cart.
The one person operated collection vehicle will be the same as those identified for
residential refi.lse and recycling service As with the balance of the residential service, carts
will be placed at the curbline on collection day for service.
As with all the recycling programs outlined in this proposal, public education is a key
element to both successful implementation and continuing participation. Since this sector
of the stream offers the greatest opportunity for landfill diversion by weight, consistent
reminders about the program will be distributed to all residents.
After collection, source separated residential green waste will be directly driven to Tierra
Verde Industries, near Irvine, for processing. Additional discussion on this site follows
later in the facilities section of this document
Commercial, Industrial and Multi Family Yard Waste recycling will be available at no
additional charge to generators using a mutually agreed upon type of container, either a
front end loading bin or automated cart. All containers will be clearly marked as "Yard
Waste Recycling Only" to reduce contamination of the loads with refuse
EDCO has been able to successfully implement similar programs in a variety of sectors to
front end loading yard waste recycling programs. The key to this success has been
extensive on site visits with the customers, as well as ongoing communication between
EDCO field personnel and the collection drivers. To that end, all generators in this stream
will be notified of the program availability at least once per year.
After collection, source separated green waste will be directly driven to Tierra Verde
Industries, near Irvine, for processing. Additional discussion on this site follows later in
the Facilities section of this document.
Christmas Tree Collection and Recycling will be provided by EDCO on an annual basis
at no additional charge to all single and multi-family customers. All Christmas trees will be
collected curbside for two week period immediately following the holiday.
Residents will receive special notices in advance identifYing program availability, as well as
helpful reminders that reduce flocking contamination, etc. This service will be performed
using a one person, sideloading residential packer collection vehicle.
In order to participate, residents will place their trees curbside next to their automated
containers. Once collected, the trees will be taken to a diversion facility for AB 939
diversion credit.
In cooperation with the City, EDCO will place roll-off boxes at centralized drop-off sites
as part of a two day event. The company participates in similar programs in other
jurisdictions and has found this type of collection to be extremely beneficial in maximizing
recovery of Christmas trees for diversion credit. The community will be notified of the
specific locations of these events as part of the ongoing public education program.
After collection, Christmas trees will be directly driven to Tierra Verde Industries, near
Irvine, for processing. Additional discussion on this site follows later in this document.
End-Uses for Yard Waste that maximize diversion credits for the City according to
regulations established by the California Integrated Waste Management Board (CIWMB)
will be consistently evaluated by EDCO. Given evolving guidelines in this arena, this
requires ongoing review of the State mandates and local land use issues
As identified in the later Facilities section of this document, EDCO has designated Tierra
Verde Industries as a site for yard waste disposal. In addition, CR Transfer also has the
ability to accept yard waste, process the material and transport it to a full processing
facility that is consistent with CIWMB guidelines.
It should be understood that, given the term of this Agreement, additional sites may
become available within proximity that could be accessed for the City's yard waste.
Diversion Requirements of 50% will be constantly monitored by EDCO to ensure that
the City is not subject to any penalties associated with this goal EDCO believes that full
implementation of the following will achieve this objective
A tri-source separated residential stream of refuse, green waste and commingled
recycling with unlimited capacity for diverted materials.
.
Combining no charge source separated recycling that is supported with mixed waste
processing in the multi-family and commercial streams.
.
Creation of source separated financial incentives for the roll-off stream supported by
processing of the balance of the stream.
.
Creation of a financial incentive to the Contractor that allows all recycling revenues to
be retained by the company
.
Comprehensive public education on all programs.
.
Enhanced awareness of source reduction opportunities that source separation
stimulates.
.
Continued monitoring of the CIWMB formula that accounts for the City's growth.
In addition, EDCO understands the responsibilities identified in Section 4.4 of the
Franchise Agreement as amended in Addendum One. As such, EDCO continues to
effectively monitor the evolving interpretations of the CIWMB, as well changes in State
regulations for various diversion applications.
Special Services
On Call Bulky Item Pickup will be provided by EDCO to single family residential
customers two times per year at no additional charge. With a maximum of three items per
pickup, this bulky item service is designed to include items such as appliances and
household furniture, whose physical dimensions exceed the automated containers.
Customers will be able to access this service simply by contacting the EDCO customer
service department 48 hours in advance of their next collection day. A special vehicle, also
used and described in the Abandoned Item Collection section, will be utilized for service
on the same day as regularly scheduled residential collection.
By collecting the bulky items on the same day as regular refuse, this will minimize
aesthetic impacts to the community. Similar to the discussion on Abandoned Item
Collection, every effort will be made to divert this material ffom being landfilled through
distributing items such as sofas and mattresses to various charities and not-for-profit
groups EDCO views this stream as having a great deal of potential to increasing diversion
through re-use of the items.
All customer requests for bulky item collection will be tracked in EDCO's in-house
billing/routing computer system for effective response and dispatch for requests. EDCO
has successfully provided this service in a number of communities and intends to inform
Tustin residents on at least an annual basis of the program availability.
Abandoned Item Collection in the streets and alleys will be provided by EDCO on an as-
needed basis as determined by the City. This service will commence in the designated area
within 48 hours of notification ITom the appropriate City agent and will be provided at no
additional charge.
For this function, the EDCO Field Supervisor for Tustin (who is available through
telephone and voice pager) will be the immediate contact for the City. As necessary, the
City will contact the Field Supervisor to outline which areas require Abandoned Item
Collection
In response, within 48 hours of notification, EDCO will remove the noted debris through
the use of a specially modified, one person vehicle. This unit has adequate storage area for
bulky items, as well as a lift gate for easy access.
As collected, every attempt will be made to divert from final disposal items such as
couches, mattresses, bicycles, etc., through a number of charitable groups and not-for-
profit agencies
In addition, EDCO will place a roll-off box at the City yard for abandoned items that are
collected by City crews. This service will be provided at no additional charge to the City.
City Sponsored Events will be provided solid waste and recycling collection service at no
additional charge to the City, ratepayers or event sponsors. This includes events such as
Tiller Days, the Tree Lighting, the Community Yard Sale, the Street Fair/Chili Cook-Off
and the Fourth ofJuly Celebration.
By providing integrated waste and recycling collection at all functions, EDCO will utilize
these events to promote public education regarding landfill diversion through effective
source separation This includes portable, collapsible cardboard refuse and recycling
containers that will supplement traditional bins and roll-off applications.
EDCO appreciates that some events, such as Tiller Days (over 75,000), have higher
participation than others and as a result, the ability to generate a larger waste stream. To
that end, EDCO has provided similar service to a number of other large scale special
events on an annual basis.
EDCO is also pleased to actively support a number of worthwhile efforts in the
communities we serve with financial and personnel support. This includes special events,
youth sports leagues, Chamber of Commerce functions and overall civic participation.
MSW collected from City sponsored events will be taken to a mixed waste processing
facility and subsequently transferred to the Alpha Olinda Landfill, near Brea, for final
disposaL Source separated recyclables will be taken to CR&R for processing. Additional
discussion on both of these sites follows later in the Facilities section of this document
Automated Cart Specifications
EDCO shall purchase all automated carts associated with the collection of refuse,
recycling and yard waste for the City of Tustin. These carts shall be approximately thirty
five, sixty four or ninety six gallons in size and shall conform to the detailed specifications
outlined in Article 4, Section 4.5.3.1 of the Franchise Agreement.
In addition, these carts will have a minimum service life of ten years, which will be
supported by a warranty of equal length from the manufacturer. A copy of this warranty is
included in the bid documents.
The carts will also achieve the cart performance standards outlined in Article 4, Section
453.2 of the Franchise Agreement. This is supported by an executed Certification of Cart
Conformance by the Manufacturer's representative, which is also included in the bid
documents
At the end of the term, all carts will become property of the City of Tustin.
City Fees
Franchise Fees will be paid by EDCO to the City of Tustin in an amount equal to 2% of
gross receipts from all amounts billed by the franchisee to the customers. This specifically
excludes however, new cart and can customers temporarily billed by the franchisee prior
to being added to the Tax Roll.
The franchise fees shall be paid in accordance with Article 3, Section 31.3 of the
Franchise Agreement.
Administrative Fee of $90,000 will be paid in a one time lump sum payment to the City
of Tustin by EDCO within seven days of full execution of the Franchise Agreement.
City Business License will be obtained and maintained on an annual basis by EDCO
during the term of the Franchise Agreement.
Disposal. Transfer and ProcessiDl!: Facilities
As part of this integrated proposal for solid waste and recycling services, EDCO plans to
utilize the following facilities:
Frank R. Bowerman Landfill (FRB) will provide direct drive disposal for the City for
material that is subject to source separation, specifically the single family residential waste
stream. Located at 11002 Bee Canyon Access Road near the City of Irvine, this facility is
a Class III Sanitary Landfill and is owned an operated by the County of Orange.
By depositing direct drive material at FRB, this achieves the contractual commitment to
deliver tonnage as per the waste disposal Agreement between the City and County of
Orange.
CR Transfer (CRT) will provide mixed waste processing for the City. Located at 11232
Knott Avenue in Stanton, this facility is a solid waste transfer facility/material recovery
facility and is permitted to accept up to 1,800 tons per day of Municipal Solid Waste
(MSW) Depending upon the incoming waste stream characterizations, this facility has the
ability to divert as much as 50% of the material through mechanized and manual
processing.
Located approximately fourteen miles from the City, there is no ownership relationship
between CR Transfer, Inc. and EDCO Disposal Corporation. It should be noted, however,
that through other long term contracts the companies have entered into, EDCO is the
single largest customer of CRT.
This position, as well as a commitment ITom the facility operators, allows EDCO to
prtJl'itle guaranteed capacity for the City of Tustin at CRT for the life of this
Agreement This provides the security required for the safe, long term processing and
disposal of Tustin MSW and is a tremendous benefit of this proposal.
Given that recovery rates are anticipated to range as high as 30%, use of CRT is a key
element of achieving AB 939 goals for the City. The ability to provide additional recovery
of recyclables from the MSW stream after source separation is only possible through
additional processing prior to final disposal.
The initial tipping fee is $44.18 per ton for MSW at CRT processed under this Agreement,
processed and then taken to the Orange County system for final disposal. The residue
from CRT will primarily be taken to the Alpha Olinda Landfill at 1942 N. Valencia near
the City of Brea. Owned and operated by the County of Orange, utilization of this Class
1lI Landfill fulfills the Agreement for disposal between the City and County. As an
alternate, residue will be taken to the previously described FRB Class III Landfill.
The method of future adjustments will be consistent with those outlined in the Franchise
Agreement As a formal agreement is made with CRT for this work, and upon request, a
copy will be available for the City to review.
CR&R Recycling (CR&R) will provide source separated recycling processing for the
City. Located at 11292 Western Avenue in Stanton, this facility is owned and operated by
CR&R, Inc. This facility does not have a specific capacity limit
Located approximately thirteen miles from the City, there is no ownership relationship
between CR&R, Inc. and EDCO Disposal Corporation. It should be noted, however, that
the companies have entered into a variety of other contracts for processing material.
This history, as well as a commitment ITom the facility operators, allows EDCO to provide
guaranteed capacity for the City of Tustin at CR&R for the life of this Agreement. This
provides the security required for the safe, long term processing of recyclables for the
City of Tustin and is a tremendous benefit of this proposal.
As a formal agreement is made with CR&R for this work, and upon request, a copy will
be available for the City to review
EDCO Recycling (ER) may also be utilized to provide source separated recycling
processing for the City of Tustin. Located at 6700 Federal Blvd. in Lemon Grove in San
Diego County, this facility is owned and operated by EDCO Disposal Corporation.
Collected recyclables would be taken to the company's Stanton Avenue truck terminal and
trans-loaded to ER. Located approximately ninety miles south of the City, this facility has
a number of different processing lines to fully sort a variety of highly effective diversion
programs. As part of our proposal, EDCO will provide guaranteed capacity at EDCO
Recycling for the lffe of this Agreement This includes single family residential
commingled recycling, multi-family commingled recycling and commercial commingled
recycling
Tierra Verde Industries (TVI) will serve as the disposal site for green waste for the City
Located at 7982 Irvine Blvd in Irvine, this facility is owned and operated by Tierra Verde
Industries and does not have a specific capacity limit
Located approximately five miles from the City, there is no ownership relationship
between Tierra Verde Industries and EDCO Disposal Corporation. The initial tipping fee
for green waste at TVI is $23.00 per ton and the method of adjustments will be consistent
with the terms of the franchise Agreement
There is no written agreement between EDCO and TVI for services, although as a formal
agreement is made, and upon request, a copy will be available for the City to review
As alternate green waste disposal sites become available, EDCO may redirect the material
to other facilities. As a secured backup position, EDCO has the ability to take the material
to CRT for initial processing and transport to alternate green waste facilities that achieve
the objectives of AB 939, including but not limited to the Brea Green facility.
Operatinl!: Facilities
EDCO will provide services to the City of Tustin with equipment and personnel based at
6762 Stanton Avenue, in Buena Park. This Stanton Avenue truck terminal houses the
Orange and Los Angeles County division for the company and provides service to the
communities of Buena Park, La Palma, Long Beach and Signal Hill, as well as a number of
other permitted communities.
All vehicle maintenance, customer service functions (including billing), field service
representatives, public education and franchise administration is based at this facility.
Conveniently located immediately adjacent to Interstate 5, this terminal is located
approximately fourteen miles from the City and also offices the division Vice President.
Storage and container maintenance of all equipment used in the performance of this
Agreement wiil be also be performed at this facility. An additional storage yard for roll-off
boxes and temporary bins may also be obtained in closer proximity to the City, which will
further enhance movements.
All metal containers will be repainted on an ongoing basis at the Container Maintenance
Facility at the Stanton Avenue truck terminal, which features welding equipment and paint
apparatus. This facility currently performs reconditioning of all metal containers for the
Orange County and Los Angeles County operations. With this focused investment in
container maintenance quality, EDCO has minimized the negative impacts associated with
graffiti and enhanced the aesthetic appearance of the communities it serves
In addition, it should be noted that the company headquarters for EDCO Disposal
Corporation are located within ninety miles. The City should anticipate that this proximity,
in addition to the company's commitment to provide superior customer service, will
ensure that EDCO senior management and/or ownership are available to review any
matter with the City. This would extend to include staff meetings, City Council meetings
or public meetings. EDCO would respectfully submit that this type of access to senior
management and/or ownership and the resulting responsiveness offers a tremendous
benefit to the City
Implementation Plan
EDCO believes that a comprehensive implementation plan must be put in place to facilitate
a smooth transition to a new hauler that is providing different programs than were
previously in place. This effort is obviously critical and is a major consideration in the
evaluation of any jurisdiction in determining whether or not to transition to a different
service provider.
The timeframes represented assume that, as presented in Section I of the RFB, the City
formally awards the contract in March 2000. Assuming contract extensions of the current
hauler until October I, 2000, this allows a full six month window for franchise conversion
preparation.
EDCO also proposes to fully implement the rollout of the residential automated
conversion over the initial three weeks of the contract in relatively equal increments, far
exceeding the total roll-out requirement within 240 days. For terminology purposes, these
is identified as Phase A, Phase B and Phase C of the residential implementation.
With these assumptions in mind, EDCO will implement the following conversion plan
April, 2000
=> Franchise Agreement executed between City of Tustin and EDCO Disposal
Corporation At this time, EDCO submits required payment of $90,000 one-time
administrative fee.
=> Meeting held with existing hauler to determine what levels of information, such as
billing, service levels, etc., are available for review and what, if any, existing field
equipment is available for sale.
=> Order new chassislbody collection units for October 1,2000 start date. Review balance
of Southern California fleet to temporarily utilize existing equipment during three week
phased transition to residential automation.
=> Order new or procure existing commercial bins. Should EDCO not be able to
consummate a transaction for existing bins in place, new bins shall be ordered that are
delivered for a October I, 2000 start date. EDCO has received manufacturer confi~mation
that this order can be slotted into production within the outlined time parameters.
=> After meeting with City to determine acceptable range of color, order r.ew automated
carts for all implementation Phases, consistent with the terms of the Franchise Agreement.
EDCO has received manufacturer confirmation that this order can be slotted into
production within the outlined time parameters.
=> Schedule a series of overview meetings with Operations/Maintenance/Container
Support/Field Service Representatives and Customer Service Representatives to review
general aspects of the proposal. Create awareness of the proposal and stimulate discussion
of issues within all areas of the company.
=> Commence detailed service routing for City of all residential services. This includes all
source separated programs and designated collection days
=> Designate a specific Field Supervisor for the City.
~ Commence detailed field audit of all current waste and recycling collection services by
EDCO route surveyor beginning with residential services, then commercial/multi-family
and concluding with industrial. All service addresses and respective collection levels are
recorded and later entered into EDCO's billing/routing system. Process is anticipated to
take a total of eight weeks.
~ Commence audit of all operating conditions for any special circumstances that alter
collection practices.
~ Commence preparation of all point of contact public education material, starting with
commercial/multi-family for direct distribution and subsequent mailings. City to have the
ability to review all material prior to final printing.
~ Meet with City to provide overview, current status of activities and introduce Field
Supervisor
Mav.2000
~ Schedule a series of internal, detailed meetings with Operations/Maintenance/Container
Maintenance Supervisors and all Customer Service Representatives to review specific
service guidelines proposed for the City. Create a working knowledge of all issues,
including method of collection, special services, key contacts, etc.
~ Hire and train a Field Representative for the City. EDCO internally promotes from
within on these positions, often ITom the Customer Service Department
~ Direct mail general information piece on commercial service transition, including letter
from City Manager or designee, identifying conversion date, specific Field Representative
for the City who will be contacting them shortly and that additional information will
follow
~ City Field Representative to commence individual meetings with commercial customers
to determine existing service levels and possible reductions in conjunction with increased
participation in source separated recycling.
~ All service addresses matched to property owners utilizing Dafaquick software base
matched to business licenses issued by the City to create master billing/routing list for
City. This process continues through August as additional information is obtained from
field surveys and site ,isits
~ Add City to EDCO web site with detailed program and special service availability.
~ EDCO joins Chamber of Commerce and pursues other community activities to create
public awareness of transition, stimulate personal interaction and accessibility.
=> Meet with the City to introduce Field Representative and discuss overview of issues.
June. 2000
=> Hire and train an additional inside Customer Service Representative. This would
supplement the existing personnel who handle all telephone inquiries for the Orange and
Los Angeles County Division and be well positioned to handle increased call volume
associated with the conversion.
=> Hire and train additional drivers that will intersperse with existing drivers being shifted
to serve the City. In this manner, senior and junior drivers will be involved in the collection
conversion, with some positions being backfilled by new personnel.
=> Hire and train additional support personnel for maintenance, container maintenance and
container movement
=> Commence City awareness program for drivers that allows for each route day to have
been driven at least five times in advance of conversion date.
=> Schedule meetings with all drivers to review areas of operational concern and establish
protocol for different collection stops.
=> Direct mail general information piece on residential service transition, including letter
from City Manager or designee, specific City Field Representative who will be contacting
them shortly, identifYing conversion date and that additional information will be
forthcoming
=> Meet with City to discuss overview and current level of activities as well as schedule a
minimum of two Public Workshops regarding the transition
July. 2000
=> In conjunction with information determined by Field Representative meetings with
individual accounts, commence detailed routing of commercial and multi-family accounts.
Although starting this process later than residential, this allows for customer input that can
alleviate implementation issues
=> Direct mail general information piece on multi-family residential service transition,
including letter from City Manager or designee, identifYing conversion date and that
additional information will follow.
=> Meet with City to discuss overview and current level of activities
AUl!ust, 2000
=> Accept delivery of new Phase A automated carts and commence assembling at nearby
storage yard.
=> Accept delivery of all new chassislbody combinations. The units will immediately be
put into service in existing EDCO operations allowing for a one month shake-out period
prior to service implementation in the City.
=> Detailed service guidelines mailed to all residential, multi-family and commercial
customers, including information on diversion programs, temporary services, construction
service and special programs, (bulky item collection, etc.) Special emphasis placed on
availability of new programs for residential service and recycling availability at no
additional charge for commercial and multi-family generators.
=> Review detailed delivery plan of bins, if existing bins are not acquired, with
manufacturer. This includes placement parameters on unique features or wheels / legs /
lids / etc. that will be required.
=> Meet with City to discuss overview and current level of activities.
September, 2000
=> Accept delivery of new Phase B and subsequently Phase C automated carts and
commence assembly at nearby storage yard.
=> Second mailing of the same detailed service guidelines in August discussion. This
represents the third overall direct mail piece, which will also be supplemented by point of
collection information distributed as outlined later in this month.
=> Deliver all new Phase A carts, including detailed program information attached to the
containers the week of September 25, 2000. Additional EDCO Field Representatives
would be available to personally discuss new program implementation.
=> Should the existing bin inventory not be acquired, new bins would start delivery the
week of September 25,2000. EDCO will coordinate with the manufacturer to deliver new
bins direct from the factory. If new bins are placed into service, the retrieval of existing
equipment will require a coordinated effort with the existing hauler and ideally is
performed on a collection day. Detailed program information would also be attached to
each container.
=> New collection days are physically noted on all residential and commercial containers
This serves as a point of disposal reminder and supplements mailed information
=> Meet with City to discuss overview and current level of activities.
October. 2000
=> Commence services on October 1, 2000. Commence automated collection of Phase A
on October 2, 2000. Full standby crews at EDCO await for supplemental support should
operational issues arise, including temporary crews ITom other locations.
=> Initial multi-family and commercial billing mailed by the company, including
introductory letter and offer to personally meet and review options for reduced refuse
service through participation in a diversion program. HigWight availability of source
separated recycling for no additional charge as a method of reducing/controlling disposal
expenses
=> Initial quarterly edition of the Environmental Times newsletter mailed along with
supplemental information and guidelines to single family residential customers.
=> Initial billing to the City by the company for all single family residential customers.
=> Initial quarterly billing to single family customers not yet on the tax bill by the
company
=> Deliver all new Phase B carts, including detailed program information attached to the
containers the week of October 2, 2000. Additional EDCO Field Representatives would
be available to personally discuss new program implementation. Commence automated
collection of Phase B on October 9, 2000.
=> Deliver all new Phase C carts, including detailed program information attached to the
containers the week of October 9, 2000. Additional EDCO Field Representatives would
be available to personally discuss new program implementation.
=> Meet with City to review implementation and current level of activities.
November. 2000
=> Initial monthly report submitted by EDCO to the City of Tustin
=> Meet with City to review implementation and current level of activities.
Onl!oinl!
=> Submit Monthly, Quarterly and Annual Reports to City of Tustin
=> Submit Franchise Fee payments to City of Tustin
=> Fulfill balance of terms and conditions of Franchise Agreement
=> Meet with City to review any issue associated with the performance of this Agreement.
EDCO looks forward to discussing any additional input the City or its consultant may
have in providing a smooth transition. EDCO believes that, given the full support of the
Orange and Los Angeles County Division as well as that of the balance of the company's
operations, that it is capable of exceeding customer expectations and preserving the health
and welfare of the City.
In addition to the local division, the entire company is firmly committed to providing all
resources at its disposal company-wide to ensure a smooth transition.
Customer Service and Billin!!
The foundation of the EDCO proposal for services is the ongoing commitment of the
entire company to provide superior customer service to the City of Tustin. As a family
owned and operated company, EDCO has always taken a great deal of pride in the
relationships that have been built with our customers in serving their waste and recycling
collection needs
This commitment is further identified in the Customer Service Department, a group that
will be responsible for all incoming City calls. The Customer Service Representatives
(CSR) that handle each inquiry have all received extensive training, as well as ongoing
discussions on methods of enhancing service.
As part of this training each CSR is provided a master outline of services in each
community EDCO serves, thus placing them in a position to respond to any issue. It
should also be noted that EDCO empowers its CSR to make decisions and authorizations
in the hope of exceeding customer expectations.
EDCO projects that the vast majority of City inquiries will be made by telephone, although
walk-up service at the Stanton Avenue truck terminal in Buena Park is also available. As
such, a toll free master telephone number will be clearly communicated to all customers
and CSR staffing will be provided from 8:00 a.m. to 5:00 p.m., Monday through Friday,
excluding holidays In addition, the ability to coITespond via e-mail is also provided
through the EDCO web site. The telephone number will be prominently placed on all
collection vehicles, containers, billing statements, inserts, correspondence, etc.
As the calls come to the CSR, each will have the ability to access information on any City
account by the customer providing any form of basic information, including their name,
address or account number Each CSR has a terminal with full access into the EDCO
billing/routing system and has all information concerning a customer profiled in the
system, including name, address, telephone number, service day, specific route(s) involved
and a comments section. In this manner, a customer service representative handling
incoming inquiries can respond to any residential, multi-family or commercial questions or
service requests.
Since the system is fully integrated throughout the company, each customer inquiry
requiring an operational action, such as an extra pickup, is entered by the customer service
representative and then transmitted to the dispatcher for action via the two way radio in all
EDCO vehicles. It should also be noted that Field Supervisors are also similarly equipped
and actively monitor the two way radio system.
Each action produces a work order ticket, which must be closed out daily by the
dispatcher after the action is performed, thus providing a check and balance on the
process. Tickets not closed out at the end of the day appear the next day on a report for
action by the dispatcher, with the Field Supervisors and General Manager monitoring the
ticket status on an ongoing basis to identifY any areas of concern.
The system also has an extensive comments section that allows for additional information
to be entered and create a historical record of any operational issues or concerns a
customer may have. This allows for issues to be both acted on effectively as well as
recorded should similar conditions arise in the future. With all Field Supervisors and Field
Service Representatives maintaining telephone access, voice mail pagers and cellular
telephones, immediate communication access is provided for rapid response to any
situation
In addition, the system is also integrated with the Container Maintenance Department for
repair of bins and replacement of carts. As the call comes in and the CSR enters the
information, the Container Maintenance Department responds to the issuance of a ticket in
the same manner that the dispatcher does for collection tickets
The EDCO system also performs the billing for multi-family, commercial and roll-off
customers. A telephone number for inquiries as well an envelope are provided in each
billing package In addition, a localized six-line message statement at the bottom of each
bill, generally relating to diversion program participation, is also added
As an intangible, EDCO believes that the best reference regarding our customer service
abilities are the customers themselves. As such, the letters of recommendations that have
been submitted from neighboring jurisdictions all have a common theme: EDCO is
committed to providing superior customer service and consistently delivers it.
Hazardous Waste Mana!!ement Component
As a collector, EDCO takes the responsibility of identifYing and following correct
procedures for handling of hazardous waste very seriously. Every driver is instructed to
visually inspect debris as collected and to identifY any hazardous appearing material.
When visual inspections reveal untreated infectious wastes, inadequately rinsed or
unpunctured pesticide containers and/or other suspected hazardous wastes, the driver is
trained and instructed to do the following:
I. Prevent the material from being discharged.
2.
Immediately transmit the location and type of material to the company dispatcher who
then contacts the General Manager, who contacts the County of Orange Local
Enforcement Agency, other appropriate agencies and/or 911 depending upon the
gravity of the situation.
3. Wait on the scene for additional support and directions.
By disposing of refuse subject to mixed waste processing at CRT, the opportunity for
identifYing any Hazardous Waste prior to final disposal is increased. As part of the Solid
Waste facility Permit issued by the Local Enforcement Agency and the State of California,
the following plans have been implemented at the facility:
. Hazardous Waste Exclusion Plan
. Hazardous Waste Handling Plan
. Hazardous Waste Storage Plan
A copy of these plans are on file in the Report of Station Information (RSI) for the facility.
Similar to other permitted solid waste facilities, CRT clearly understands the significance
of proper identification, handling, storage and safe disposal of hazardous materiaL
Similarly, MSW directly disposed of or transferred to the County of Orange landfill system
is subject to the load check program identified in the Report of Disposal Site Information
(RDS1) for each respective landfill. To prevent the improper disposal of hazardous
materials, random spot load checks are performed by the County. Improper disposal is
required to be removed from the site and repeat offenders are referred to the County of
Orange Hazardous Waste Strike Force.
EDCO shall maintain records showing the types and quantities of Hazardous Waste
inadvertently disposed of that was diverted from landfilling.
CR & R INCORPORATED BID
Printed on Recycled Paper
January 18, 2000
City of Tustin
300 Centennial Way
Tustin, CA 92780
CR&R
-
11192 WlSTERN AVE
"BOX 115
STANTON.CA"'"
71H26~9049
Attention:
Mr. Joseph Meyers
Senior Management Analyst
Public Works Department
Re:
City of Tustin
Bid for Integrated Solid Waste Management Services
Submitted by CR&R Incorporated
Ladies and Gentlemen:
CR&R Incorporated is pleased to submit its Bid for Integrated Solid Waste Management Services to the
City of Tustin.
Enclosed you will find four copies ofCR&R's Bid. The copy marked "4 of 4" is unbound.
CR&R wishes to draw your particular attention to two items. First, signed originals of this Transmittal
Letter, the Anti-Collusion Affidavit and Notary Certification, the Manufacturer's Certification of Cart
Confonnance, and the Executed Signature Page from Franchise Agreement are enclosed only in Section 1 of
the Bid binder marked "1 of 4". All the other copies of the Bid contain photocopies of those signed
originals.
Second, Section 4. e. of the Request for Bids requires submittal of financial infonnation from CR&R. A
single copy of the financial infonnation ofCR&R is being submitted to the City. It is in a sealed envelope
identifying it as a part of the Bid and labeled as "Financiallnfonnation Submitted in Response to Section 4.
e.". It is clearly marked as "Confidential". CR&R requests that its Financial Infonnation not be
photocopied. If additional copies are needed in order for the City to conduct a review of CR&R's
qualifications, those copies will be supplied promptly upon request. If CR&R is not the successful bidder,
we request that the sealed envelope containing its financial infonnation not be opened and that it be
promptly returned.
For the sake of easy description, CR&R Incorporated and its two wholly-owned subsidiaries, Solag
Disposal, Inc. and CR Transfer, are fTequently referred to collectively in the Bid as CR&R.
In closing, CR&R believes that it is the only locally-owned company in Orange County that has the ability
to handle the City of Tustin's needs without relying on any third party facilities. We further believe that the
enclosed Bid presents a strong statement of the operational experience ofCR&R not only with regard to the
conduct of solid waste, recyclable material and yard waste collection, transportation, processing and
material recovery services but also with respect to the assurance of full compliance with AB 939.
We look forward to being of service to the residents of the City of Tustin.
~~
Da . Fahrion
President
Solid Waste Management Division
@",~m".'"
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
General Requirements
a.
b.
c.
d.
Title Page
Transmittal Letter
Table of Contents
Anti-Collusion Affidavit and Notary Certification
Responsible Bidder Requirements Form
Copy of Cart Manufacturer's Warranty
Manufacturer's Certification of Cart Conformance
Executed Signature Page from Franchise Agreement
e.
f.
g.
h.
Proposed Rates
Supporting Cost and Operating Data Worksheets
Bidder Overview
a.
b.
c.
d.
Business Structure
Description of Bidder's Experience
Information Regarding Past and Pending Litigation
Key Personnel
Financial Information
e.
Proposed Services
a.
b.
c.
d.
Refuse Collection
Recyclables Collection
Yard Waste Collection
Special Services
Disposal, Transfer and Processing Facilities
Operating Facilities
Implementation Plan
Customer Service and Billing
Hazardous Waste Management Component
Public Education
e.
f.
g.
h.
i.
j.
Other Relevant Information
1. c. - I
Printed on Recycled Paper
CR&R Incorporated as a part of this bid submits the Anti-Collusion Affidavit and Notary's
Cerification which immediately follows this page.
1. d. - 1
Printed on Recycled Paper
ATTACHMENT 5
ANTI-COLLUSION AFFIDAVIT AND NOTARY'S CERTIFICATION
Bidder as a part of this bid submits the following affidavit:
The undersigned deponent, of lawful age, being dilly sworn, upon his oath deposes and says:
That he has lawful authority to execute the within and foregoing bid; that he has executed the
same by subscribing his name hereto lU1der oath for and on behalf of said bidder; that bidder
has not directly or indirectly entered into any agreement, express or implied, with any bidder
or bidders, having for its object the controlling of the price or amount of such bid or bids, the
limiting of the bids or bidders, the parceling or farming out to any bidder or bidders or other
persons of any part of the contract or any part of the subject matter of the bid or bids or of
the profits thereof, and that he has not and will not divulge the sealed bid to any person
whomsoever, except those having a partnership or other financial interest with him in said bid
or bids, until after the said sealed bid or bids are opened.
Deponent further states that the bidder has not been a party to any collusion among bidders
in restraint of freedom of competition; by agreement to make a bid at a fixed price or to
refrain from submitting a bid; or with any City official or employee as to quantity, quality, or
price in the prospective contract; or in any discussions between bidders and any City official
concerning exchange of money or other things of value for special consideration in the letting
of a contract; that the bidder has not paid, given or donated or agreed to pay, give or donate
to any official, officer or employee of the City directly or indirectly, in the procuring of the
award of contract pursuant to this bid.
Executed under penalty of perjury on this ~ day of -::JA'1VA-r7' ,aooo at-
P",r,...',£, c.A . SIGNED IßL.~
BY D,lt-vld E. F?;.hrlon
TITLE Q,'VI's'Or-¡ Pr!Z-,,',dfð"11-
.,),""ð
,~,at-
Subscribed and sworn ~o before me this lL day of ?~
~ (1~~~. ~ ~ ~
' . '/l/"¡? ) ffi .<.J ""--
/
Notary Public
~,C'n=~;CO;M ~VT~c' fi~L¡
M. CHARLENE SUW AN
:;: Comm. # 12213116 ;¡,
':0 NOTARVP\J8UC.CAIJfORNiA f
4: RtVERSIOE COUNTY ..:
Myeomm._July2.2003 ,
.
P-/
~oo ::s
Failure to complete and submit this form will deem the proposer's bid non-responsive.
December 7, 1999
5-1
City of Tustin
In order to be eligible to bid for the City's Integrated Solid Waste Management Services
Agreement, potential bidders must provide all of the information described below. Please
check the appropriate response to each item below, and attach documentation to this form
supporting each response (e.g. names of agencies, population, dates of service, description of
services provided, name of contact person at the agency and telephone number), and where
the answer is "No", please provide detailed information about your experience providing the
service.
Requirement
I. The bidder has previously provided exclusive residential refuse
collection services to at least one public agency with a service area
population of at least 30,000 in the past ten years.
2. The bidder has previously provided exclusive commercial refuse
collection services to at least one public agency with a service area
population of at least 30,000 in the past ten years.
3. The bidder has previously provided fully automated residential
refuse collection services (either refuse, recycling or yardwaste) to
at least one city or county in the past ten years.
4. The bidder has previously provided yardwaste collection services
to at least one city or county in the past ten years.
Yes No
YES
YES
YES
YES
5. The bidder has previously provided recycling collection services to
at least one city or county in the past ten years. YES
6. The bidder has previously initiated new exclusive residential and
commercial service in at least one city or county as part of a
transition from a previous service provider.
7. The annual revenues from the Tustin Contract (estimated at
approximately $5 million per year at current rates) will be less
than 33% of the bidder's existing annual revenue as reported for
its most recently completed fiscal year.
8. I have attached all supporting data required to explain the
responses in this form.
Ie -I
YES
YES
YES
Printed on Recycled Paper
Supporting Information for Responses to Requirements 1 through 6
Overview
CR&R, including its wholly-owned subsidiary, Solag Disposal, provides solid waste
collection and material recovery services to a popwation in excess of2,500,000 people.
CR&R also provides these services to more than 5,000 commercial establishments in
Orange, Los Angeles, San Bernardino, and Riverside Counties. These efforts result in the
recovery of more than 120,000 tons of recyclable material each year. The citizens of Orange
County are the primary beneficiaries of these material recovery efforts. These actions
annually conserve substantial amounts of the County's finite landfill capacity for use by
future generations.
Each ofthe cities in which CR&R provides solid waste collection and material recovery
services enjoys the fact that they are in compliance with the diversion requirements set forth
in the Integrated Waste Management Act of 1989, commonly known as Assembly Bill 939
(AB 939).
CR&R has been providing solid waste collection and material recovery services in Orange,
Los Angeles, San Bernardino, and Riverside Counties for approximately 37 years. It
services the Cities of Stanton, Ferris, Temecula, Canyon Lake, Lake Elsinore and portions of
Orange, Riverside and San Bernardino Counties under long term exclusive solid waste
collection contracts. CR&R, through it wholly-owned subsidiary, CR Transfer, has also
constructed and owns and operates two state-of-the-art material recovery facilities and solid
waste transfer stations (MRF/Transfer Stations) with permitted capacity of3,600 tons per
day. These MRF/Transfer Stations are located in the Cities of Stanton and Temecula in
California. At the Stanton MRF, CR Transfer has exclusive long term agreements to handle
the solid waste from the Cities of Costa Mesa, Newport Beach, Buena Park, La Palma,
Rossmoor (County of Orange), Stanton and Midway City (Westminster).
CR&R also derives revenue from public and private entities requiring efficient and cost-
effective solid waste management programs. The Company's recycling network services
some 400 recycling customers in over 100 cities. It currently has marketing contracts with
domestic and foreign paper mills, metal, glass, and plastic processors. CR&R is currently
processing and marketing all recyclable materials from over 25 curbside programs
throughout Southern California. CR&R currently processes approximately 55,000 tons of
recyclables and solid waste materials each month.
Ie -2
Printed on Recycled Paper
CR&R's subsidiary, Solag Disposal, has been providing solid waste collection and materials
recovery services in South Orange County for more than 40 years. It has exclusive
municipal solid waste management contracts with the cities of Dana Point, San Clemente,
San Juan Capistrano, and Laguna Niguel, and Laguna Hills. It also has an exclusive contract
to serve the County's unincorporated Aliso Viejo community.
CR&R, through its Haulaway Storage Container Division, is also one of the leading
providers of portable steel security containers in the Western United States. For over twenty
years, through a network of seventeen regional service centers in California, Arizona,
Colorado, Utah and Washington, Hawaway has served major industries with temporary, on-
site storage space. Using portable steel security containers to protect building materials,
tools, and other equipment onjob sites has become an industry norm since this concept was
introduced by Haulaway in the late 1960s. With its own manufacturing capabilities,
Haulaway has designed and refined its containers to provide weather-resistant, theft-
resistant, completely portable security containers to meet the specific needs of its diverse
customer base.
With over 500 employees and a fleet of over 500 trucks and trailers, CR&R, including its
subsidiary companies, Solag Disposal and CR Transfer, is one of the premier environmental
services companies in California.
Names of Public Agencies Being Serviced and Brief Descriptions of Services
Set forth below are the names of the public agencies to which CR&R currently provides
waste management services and brief descriptions of the services being provided.
Orange County
city of Newport Beach
Midway City Sanitary District
City of Stanton
Mr. David Niederhaus
General Service Director
(714) 644-3055
Contract Date: 7/1/96
Customers Serviced:
City
Mr. Del Boyer
General Manager
(714) 893-3553
Contract Date: 1/1/99
Customers Serviced:
1,000 Commercial
Mr. Terry Matz
City Manager
(714) 379-9222
Contract Date: 10/23/90
Customers Serviced:
3,600 Residential
1.500 Commercial
Services Performed: All
Collection Method: I-Can Automated
Annual Tonnage: 28,504
Annual Diversion: 46%
Services Performed: MRF/Transfer
Collection Method: N/A
Annual Tonnage: 37.500
Services Performed: All
Collection Method: Frontloader
Annual Tonnage: 29.731
Annual Diversion: 54%
Ie -3
Printed on Recycled Paper
Costa Mesa Sanitary District
County of Orange
City of San Juan Capistrano
Services Perfonned: MRF/Transfer
Collection Method: NA
Annual Tonnage: 31.000
Ms. Jan Goss
Director of Governmental Relations
(714) 568-4160
Contract Date: 7/1/99
Customers Serviced:
10,000 Residential
300 Commercial
Services Perfonned: All
Collection Method: 3-Can Automated
Annual Tonnage: 24,190
Mr. Douglas Dumhart
Principal Management Analyst
(949)443-6316
Contact Date: 12/17/96
Customers Serviced:
8.000 Residential
750 Commercial
Services Perfonned: All
Collection Method: 3-Can Automated
Annual Tonnage: 46.347
Annual Diversion: 42%
Ms. Lois Thompson
District Clerk
(714) 754-5043
Contract Date: 4/1/96
Customers Serviced:
City
City of San Clemente
City of Dana Point
City of Laguna Niguel
Mr. John Bressan Ms. Cindy Asher Mr. Ken Montgomery
Utilities Manager Recycling Coordinator Director of Public Works
(949) 366-1553 (949) 248-9890 (949) 362-4339
Contract Date: 8/6/97 Contact Date: 8/27/97 Contact Date: 7/7/92
Customers Serviced: Customers Serviced: Customers Serviced:
16,200 Residential 11,000 Residential 16,300 Residential
1.000 Commercial 700 Commercial 1,200 Commercial
Services Perfonned: All Services Perfonned: All Services Perfonned: All
Collection Method: 2-can Automated Collection Method: 2-Can Automated Collection Method: 2-Can Automated
Manual Yard Waste Manual Yard Waste
Annual Tonnage: 52,648 Annual Tonnage: 39.688 Annual Tonnage: 58,791
Annual Diversion: 37% Annual Diversion: 37% Annual Diversion: 42%
City of Laguna Hills
Mr. Don White
Director of Public Works
(949) 707-2610
Contact Date: 1/23/96
Customers Serviced:
5.300 Residential
900 Commercial
Services Perfonned: All
Collection Method: 3-can Automated
Annual Tonnage: 29,457
Annual Diversion: 28%
Ie -4
Printed on Recycled Paper
Riverside and San Bernardino Counties
City of Temecula
Mr. Shawn Nelson
City Manager
(909) 694-1989
Contract Date: 5/28/91
Customers Serviced:
15.000 Residential
1,500 Commercial
Services Perfonned: All
Collection Method: 3-can Automated
Annual Tonnage: 86.687
Annual Diversion: 53%
City of Lake Elsinore
Mr. Dick Watenpaugh
City Manager
(909)674-3124
Contract Date: 6/9/92
Customers Serviced: 7.000 Residential
7.000 Residential
1,200 Commercial
Services Perfonned: All
Collection Method: 3-can Automated
Annual Tonnage: 30.165
Annual Diversion: 43%
City of Canyon Lake
Mr. Del Powers
City Manager
(909) 244-2955
Contract Date: 1/14/92
Customers Serviced:
3.600 Residential
50 Commercial
Services Perfonned: All
Collection Method: 3-Can Automated
Annual Tonnage: 9,165
Annual Diverion: 55%
County of Riverside
Mr. Bob Nelson
Director of Solid Waste
(909) 955-1399
Contract Date: 1/1/99
Customers Serviced: 7.000 Residential
7.000 Residential
50 Commercial
Services Perfonned: All
Collection Method: 2-Can Automated
Annual Tonnage: 21.288
Detailed Descriptions of Services to Municipal Customers
City of Perris
Mr. Ron Molendyk
City Manager
(909) 943-6100
Contract Date: 10/25/93
Customers Serviced:
8,000 Residential
1.000 Commercial
Services Perfonned: All
Collection Method: I-Can Automated
Annual Tonnage: 35.160
Annual Diversion: 45%
County of San Bernardino
Mr. Gerry Newcombe
Director of Solid Waste
(909) 387-8600
Contract Date: 7/1/98
Customers Serviced:
3,000 Residential
300 Commercial
Services Perfonned: All
Collection Method: Manual
Annual Tonnage: 12.150
Set forth below are descriptions in greater detail of services similar to those requested for the
City of Tustin which are provided by CR&R, through its Solag Disposal subsidiary, in five
Orange County cities.
City of San Juan Capistrano
Solag has provided solid waste collection service in the City of San Juan Capistrano since
1964. From 1964 to the early 1990's, the solid waste collection service was similar to the
service that the City of Tustin now receives - weekly manual collection.
Ie -5
Printed on Recycled Paper
In 1990, Solag successfully launched a pilot three basket residential recycling program in
San Juan Capistrano to supplement its solid waste collection service. This program offered
three stackable baskets for the collection of newspaper, metals, glass and plastic recyclables.
The manual solid waste collection and three basket recycling program was replaced in 1993
with a fully-automated solid waste collection and recycling system. Solag provided a
smooth and seamless transition from manual to automated collection for the 8,000
residences in the City of San Juan Capistrano. That system remains in place today and
generates one ofthe highest recycling rates in Southern California.
The fully-automated system in San Juan Capistrano utilizes three containers that can be 35
or 67 gallons in size. Materials are placed in these containers and collected once-a-week.
Container sizes are selected by each customer based on the amount of solid waste and
recyclable material they generate. A black container is provided for solid waste and a blue
container for commingled recyclable materials and a green container is provided for the
recycling of green waste materials such as brush, branches, and grass clippings. In special
circumstances, Solag still offers manual collection service.
In addition to its highly successful residential solid waste and recycling system, the
Company provides collection service to all commercial and industrial businesses in the City
of San Juan Capistrano. The basic commercial service consists of the selection of three or
four cubic yard ITont loading containers, or large 10, 30 or 40 cubic yard roll-off containers.
Service is determined based on the unique needs of each individual customer with regard to
the space available for equipment and the amount of waste being generated. Compactor
service is also available for either front loading or roll off size containers.
City of Dana Point
Solag Disposal has provided solid waste collection service in the City of San Juan
Capistrano since 1964. During much of this time, the basic residential service consisted of
manual collection with customer owned containers or bags placed curbside. Service was
provided one time per week on a designated collection day.
In 1990, a pilot three basket recycling program was implemented and performed along with
the manual solid waste collection.
The three basket program was replaced in 1993 when the City selected the fully-automated
solid waste collection and recycling system. Solag provided a smooth and seamless
transition for some 11,000 residences in the City ITom manual collection and the three
basket recycling program to the fully-automated solid waste and recycling system.
Ie -6
Printed on Recycled Paper
In addition to the residential solid waste collection and recycling system, the Company
provides service to all commercial and industrial businesses in the City of Dana Point.
City of Laguna Hills
Solag has provided service to this area since 1957 under a County of Orange Permit and
continued as a service provider when the City incorporated in 1994. During this time the
basic residential service consisted of manual collection with customer owned containers or
bags placed curbside one time per week on a designated collection day.
In 1990, the three basket recycling program was implemented to supplement the manual
collection program for residential customers. Solag again provided a smooth and seamless
transition.
As the result of a 1995 competitive bid process, a joint venture comprised of Solag and
CR&R was awarded a 10 year contract for the fully-automated collection of solid waste and
recyclables from residential and commercial generators throughout the City. Effective July
I, 1996, Solag and CR&R worked together to provide the entire City of Laguna Hills, which
previously had received part of its services from another solid waste management company,
with a smooth and seamless transition to a fully-automated solid waste and recyclable
material collection program. In addition to the residential solid waste and recycling system,
the Company provides service to commercial and industrial businesses in the City.
City of Laguna Niguel
Solag has been serving the residents of what is now the City of Laguna Niguel since it's first
homes were built. For more than 30 years, the residential solid waste collection service in
Laguna Niguel was a once-a-week manual system.
In 1993, Solag successfully implemented a fully-automated solid waste collection and
recycling system. Here again, Solag provided a smooth and seamless transition from the
manual collection program to the automated system for the nearly 16,000 residences of the
City of Laguna Niguel.
The fully-automated system utilizes two containers at each residence, either 35 or 67 gallons
in size, from which materials are collected once-a-week. Customers select container sizes
depending on the amount of solid waste and recyclable material they generate. A black
container is provided for solid waste and a blue container for commingled recyclable
Ie -7
Printed on Recycled Paper
materials of all kinds. The residents of the City of Laguna Niguel also have the option to
retain manual collection service if specific circumstances dictate.
In addition to the residential solid waste and recycling system, Solag provides service to all
commercial and industrial businesses in the City of Laguna Niguel. The basic commercial
service consists of three or four cubic yard front loading containers, or large 10,30 or 40
cubic yard roll-off containers. Service is determined based on the unique needs of each
individual customer with regard to the space available for equipment and the amount of
waste being generated.
City of San Clemente
Solag has provided solid waste collection service in the City of San Clemente since 1978.
During much of this time, the basic residential service consisted of manual collection with
customer owned containers or bags placed curbside one time per week on a designated
collection day. The billing for this service was handled through the City of San Clemente on
each customer's water bill.
In 1990, a pilot three basket recycling program was implemented and performed along with
the manual solid waste collection service.
In 1993, Solag provided a smooth and seamless transition to a fully-automated solid waste
collection and recycling system for the 16,000 residences in the City of San Clemente.
Solag also successfully converted the residential billing to Solag's computerized quarterly
billing system. In addition to the residential solid waste collection and recycling system, the
Company provides service to all commercial and industrial businesses in the City.
Service Transition Experience
CR&R has implemented service transitions in many municipalities throughout its history in
the solid waste management industry. In the past few years, in the Cities of Temecula,
Canyon Lake and Laguna Hills, CR&R in whole or in part took over residential and/or
commercial solid waste management services ITom another collection company which had
provided little or no recycling and yard waste service and successfully implemented
transitions to three cart, fully-automated service similar to that to be provided in the City of
Tustin. In these transitions, CR&R was required to draft and distribute educational
information, purchase and distribute the automated carts, and prepare all routing not only to
accommodate the waste collection but also the weekly street sweeping schedule. As noted
in the detailed descriptions above, CR&R and its management team have extensive
Ie -8
Printed on Recycled Paper
experience with regard to service transitions, all of which have been successfully
implemented.
Supporting Information for Response to Requirement 7
The annual revenues of CR&R as set forth in the Financial Information provided in Section
4. e. are substantially in excess of$15,000,000 per year. Assuming that the annual revenues
from the Tustin contract would be approximately $5,000,000 per year, those revenues would
be significantly less than 33% of CR&R's annual revenues.
Supporting Information for Response to Requirement 8
All supporting data required to explain the responses to requirements I through 7 are set
forth in this Section 1. e.
1e-9
Printed on Recycled Paper
A copy of the warranty for carts manufactured by Roto Industries is enclosed immediately
following this page.
1.f. -1
Printed on Recycled Paper
e8~
LINEAR POLYETHYLENE WARRANTY
Roto Industries, Inc. warrants that each container (including hardware)
shall be fully guaranteed for ten (10) years against breakage or
material failure. When the word "container" is used in this
specification, it is defined a complete unit including full lid assembly.
Manufacturer shall replace any containers, which fail by reason of:
. Improper or inadequate materials or defective workmanship
. Insufficient resistance to weathering
The user will replace any containers damaged through acts of third
parties not under the manufacturer's control, such as theft, vandalism
or fire damage.
Containers that do fail during the warranty period shall be accumulated
by the user and replaced by order in convenient lots by the
manufacturer. Repair or replacement of containers is the sole remedy
available under this warranty.
No accumulation of defective containers shall exceed $2.000.00 in
value without written notice to the manufacturer. The manufacturer
may, at his convenience, inspect any such containers and may
challenge his obligation to replace the container on the basis that the
failure resulted from negligent handling or abusive use. If such is the
case, then the manufacturer shall not be required to replace any such
containers. If a disagreement exists regarding the reason for the
failure, they shall select a third party skilled in the use and fabrication
of the materials involved and shall ask his determination which shall be
binding on both parties and they shatl abide by it.
The intended use and proper service of these containers are
understood by both parties and the importance to maintain the
collection equipment in sound working order is acknowledged by the
user. Radial force and hydraulic pressures suitable for use with the
containers is stated in the bid specifications as approved by user and
accepted by manufacturer.
Warranty is exclusive to purchaser
ROTa INDUSTRIES. INC. MAKES NO OTHER WARRANTY,
EXPRESSED OR IMPLIED, INCLUDING WARRANTY OF
MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR USE.
œB~
UNEAR POLYETHYLENE WARRANTY
The following are descriptions of several situations where the warranty
does not apply. Exclusion includes but is not limited to these
situations.
NEGLIGENT OR ABUSIVE USE:
. Cuts or scores from any source.
. Extraordinary impacts such as being hit by a vehicle.
. Burns, scorches, melting. Any damage from excessive heat.
. Improper handling. Includes dropping stacks off delivery trucks,
improper stacking. forcing carts through a narrow opening, allowing
packer mechanisms to hit cart during the dumping cycle, abrasion
from excessive dumping, or cracks caused by improper handling or
dumping.
. Damage from automated grasper or semi-automated lifter.
Includes any scratches, creases, cracks or breaks from a
maladjusted, incorrectly operated or improper automated grasper or
semi-automated tifter. This includes any semi-automated tift speed
faster then two seconds for either the lift cycle or the down cycle.
. Improper unloading i.e. - jamming cart into garbage not yet
removed from hopper.
. Chemicals. Being exposed to solvents. petrochemicals, paints,
acids or any other chemical substance, which damages plastic or
metal parts.
. Improper use. Being used other than for storage. transport and
dumping of normal household residential solid wastes or
recyclables. including such uses as: Construction. industrial,
institutional and use for landscaping. liquid storageltransport. bulk
solids storage/transport. recreation, and food service.
. Failure to follow the instructions imprinted on cart or other parts.
?
A certification of cart conformance from Roto Industries is enclosed immediately following
this page.
1. g. -1
Printed on Recycled Paper
ATTACHMENT 7
MANUFACTURER'S CERTIFICATIÒN OF c."RT CO"iFORMANCE
Following are the hea¿i."1gs for the specific design specifications and performance
requirements for the automated carts to be obtained and used in the performance of the
Franchise Agreement. Review the Franchise Agyeement section referenced (Attachment 9) and
check the space for "Yes" if the carts coruorm to the design specification or performance
requirement or "No" if the carts do not conform to the specification or requirement.
Cart Design Specifications
1. Capacity - Section 4.5.3.1.1
2. Cart Handles - Section 4.5.3.1.2
3. Cart Lid - Section 4.5.3.1.3
4. Foot-Hold - Section 4.5.3.1.4
5. Cart Colors - Section 4.5.3.1.5
6. Wheel Design and Axles Assembly - 4.5.3.1.6
7. Identification Markings - 4.5.3.1.7
8. Additional Parts - 45.3.1.8
9. Replacement Parts - 4.5.3.1.9
Cart Performance Requirements
1. Minimum Service Life - 4.5.3.2.1
2. Cart Load Capacity - 4.5.3.2.2
3. Cart Durability - 4.5.3.2.3
4. Chemical Resistant - 4.5.3.2.4
5. Stability and Maneuverability - 4.5.3.2.5
6. Lid Performance - 4.5.3.2.6
7. Reparability - 4.5.3.2.7
Yes
x
---
_J_-
--X.-
---.2{--
-_Jl-
----A--
--.X.--
----A--
--2L--
--1L--
X
---
--X--
X
--1L-
~-
X
---
No
--
--
---
---
---
---
---
I have read the sections of the Franchise Agyeement referred to on the previous page and checked
whether or not the carts included in the Bid for the City of Tustin Integrated Solid Waste
Management Services coruorm to the design specifications and cart performance requirements
J{:I íl-~
Signature of Manufacturer's Representative
Rota Industries, Inc.
Name of Cart Manufacturer
Mark Ranae!
Presidf'.nt
Title
January 11. 2000
Date
Failure to complete and submit this form will deem the proposer's bid non-responsive.
December 7, 1999
7-1
City of Tustin
CR&R Incorporated as a part of this bid submits, immediately following this page, an
executed signature page from the Franchise Agreement signed by Clifford R. Ronnenberg,
ChiefExecutice Officer ofCR&R.
1. h.-I
Printed on Recycled Paper
13.6
Severability
If any non-material provision of this Agreement is for any reason deemed to be invalid
and unenforceable, the invalidity or unenforceability of such provision shall not affect
any of the remaining pro,.isions of this Agreement which shall be enforced as if such
invalid or unenforceable provision had not been contained herein.
13.7
Exhibits
Each of the Exhibits identified in this Agreement is attached hereto and incorporated
herein and made a part hereof by this reference.
13.8
N on-Waiver Provision
Failure of either party to exercise any of the remedies set forth herein within the time
periods provided for shall not constitute a waiver of any rights of that party with regard
to that failure to perform or subsequent failures to performing whether determined to
be a breach, excused performance or unexcused defaults by the other party.
IN WITNESS WHEREOF, the City and the Company have executed this Agreement as of the
day and year first above written.
CITY OF TUSTIN
("City")
ATTEST:
CITY CLERK
By
MAYOR, CITY OF TUSTIN
APPROVED AS TO FORM:
City Attorney
{"C~û ca ~a. /~~c;
By: ~ 1M/l..u4 hi
Name:CL./r=r-~ Iþ-<./¡(/,GV~
Title: ~/~4</.
By:
CrmTbar ~ 1 gæ
-97-
QýcfTtSh
Printed on Recycled Paper
Altaetuneot 3
Proposed Rates
Total Cao1ICao BIIli
Commerclal..d Munl-Famlly Blu Rates
t
60.17 $
70.17 $
80.17 $
Z
76.57 $
91.57 $
106.57 $
3
92.14 $
107.71 $
132.14 $
4
107.71 $
128.28 $
152.28 $
5
119.85 $
14"85 $
177.85 $
ZCubleYard, 84 20 9 I
3 Cub" Yard, 253 562 340 125 132
4 Cub" Yard, 30 80 97 23 49
~ ~ - ~ ~ m
Source: W..lc Managemon~ Inc. The Cily """ not asswne ""Y responsibilily for Ibe =uracy of the reported iufonnatioo
Commercial .od Multi-Family Blo BIIII..,
Z
1.531 $
51,462
8526
61519 $
738 228 $
829 $
36,621
12818
50268 $
603216 $
16,035
3,502
19,537 $
234444 $
120 $
19,648
8715
28483 $
341796 $
Summarv o'Prolected Au.ual BIIII...
S_laI Semees
23 Temporæy Bm Servicea - Per Full. ploa $5 per day over 7 days $ 50.00
24 Loclcing Bm - ea.! per Inn per month $ 5.00
25 Bm CIeanmg (m ex"", of ooe Inn cl...mg per ycm-> - Each $ 35.00
26 Ad<fitiorud Bulky Waste Piclrnp (m """'" of2 perye,,> - Esoh $ 20.00
27 Ad<fitiorud Soecial Pickuo fo, Automated Cart c-...... m ex"", of 2 cor v.... . Each $ 5.00
. These unn "funat" will be usedforpwpo... ofcalculating"lcrevenoemd
detennining Ibe propos"" tWeraII cost II asswn" duol all single fimriIy, duplex, md
triplex om" will receive sutomated cart ocMce.
271 $
10,504
9357
20132 $
241 584 $
6
135.42
169.42
203.42
2
62
46
110
Falla... to complete and ,uhmlt thl, 'urm will deem the proposer', hid uon-....pouslve.
D""mb.,7, 1999
3-1
City qfTusUn
Printed on Recycled Paper
Attachment 4
Supporting Costs and Operating Data
Projected Revenue Requirement for the First Twelve Months of the Franchise A¡¡reement
Truck Operating Costs (a)
Processing Costs
Disposal Costs
Con1ainerCosts
General, Adminis1rative and Profit
Franchise Fee
OIher
$
$
December 7. 1999
12
13
14
15
16
17
18
19
20
21
22
Nwnber of Routes per Day:
Automated Cart Routes
- Refuse Routes
- Recycling Routes
- Yard Waste Routes
Manual Can Refuse Routes
Bin Routes
- Refuse
- Recycling
Roll-OffBox
SF & MF Bulky Item Pickup and Other
23
Total Routes
. For Example, 8. 9 or 10 hours per day.
Failure to complete and submit this fonn will deem the proposer's bid non-responsive.
~j;~
181,197 $
3.960
45.76 $
3,762
690,753 $
12,807
53.94 $
3,202
161,964 $ 4,866,725
600 76,089
269.94 $ 63.96
2£ 2 t 2~ 2 t 2~ t E 1°f 11
"""-""""-"-"'2 "-"""-"-"""""-2" ""'--'-""""""'2 """-"""""'-""2' -"""""""""""'2 ....-...---..........-.. ....--........,.-........... """"'-""""'-lõ """"'IT""""""
...==':.:::':::::=~: :=::=::..::..:.:~:' "':::"::::::::::"'::: :=="=~='~= '=::=::=.:::::== ":=:==::..:::'=:::: '.:=::::=.::=~~: .:::==::.==:=i: :'::::::~¡i~:::="'"
'=:==::=::::+l":::~-:~'~..:::t~::,,:,,:,,::~:~,,:'1~'::=..:~=::"~~:~'=:.::'.==:::l:t:.:==:....::.::~:.::~:.::~:.....~:'.....::""'-""
21 11.. 2+ tl" 2
16
16
16
16
16
4-1
City of Tustin
Printed on Recycled Paper
CR&R is a privately-owned company which was incorporated as a California corporation in
October of 1963. It has been providing solid waste collection and materials recovery
services in Orange, Los Angeles, San Bernardino, and Riverside Counties for approximately
37 years. It has exclusive contracts to provide solid waste collection and/or material
recovery services to the cities of Buena Park, Newport Beach, Cerritos, Canyon Lake,
Wrightwood, Costa Mesa, La Palma, Lake Elsinore, PeTTis, Stanton, Temecula, the Midway
City Sanitary District, and the County of Orange. It also owns and operates a materials
recovery facility and solid waste transfer station (MRF/Transfer Station) located in the City
of Stanton, California through its wholly-owned subsidiary, CR Transfer.
Solag Disposal, Inc. has recently been acquired by CR&R. It has been providing solid waste
collection and materials recovery services in South Orange County for more than 40 years.
It has exclusive municipal solid waste management contracts with the cities of Dana Point,
San Clemente, San Juan Capistrano, and Laguna Niguel, and Laguna Hills. It also has an
exclusive contract to serve the County's unincorporated Aliso Viejo community.
Services in the City of Tustin would be provided under the legal auspices of CR&R utilizing
resources and personnel not only from CR&R but also from Solag Disposal and CT
Transfer.
4a-l
Printed on Recycled Paper
Overview
CR&R, including its wholly-owned subsidiary, Solag Disposal, provides solid waste
collection and material recovery services to a population in excess of 2,500,000 people.
CR&R also provides these services to more than 5,000 commercial establishments in
Orange, Los Angeles, San Bernardino, and Riverside Counties. These efforts result in the
recovery of more than 120,000 tons of recyclable material each year. The citizens of Orange
County are the primary beneficiaries of these material recovery efforts. These actions
annually conserve substantial amounts of the County's finite landfill capacity for use by
future generations.
Each of the cities in which CR&R provides solid waste collection and material recovery
services enjoys the fact that they are in compliance with the diversion requirements set forth
in the Integrated Waste Management Act of 1989, commonly known as Assembly Bill 939
(AB 939).
CR&R has been providing solid waste collection and material recovery services in Orange,
Los Angeles, San Bernardino, and Riverside Counties for approximately 37 years. It
services the Cities of Stanton, Perris, Temecula, Canyon Lake, Lake Elsinore and portions of
Orange, Riverside and San Bernardino Counties under long term exclusive solid waste
collection contracts. CR&R, through it wholly-owned subsidiary, CR Transfer, has also
constructed and owns and operates two state-of-the-art material recovery facilities and solid
waste transfer stations (MRF/Transfer Stations) with permitted capacity of 3,600 tons per
day. These MRF/Transfer Stations are located in the Cities of Stanton and Temecula in
California. At the Stanton MRF, CR Transfer has exclusive long term agreements to handle
the solid waste from the Cities of Costa Mesa, Newport Beach, Buena Park, La Palma,
Rossmoor (County of Orange), Stanton and Midway City (Westminster).
CR&R also derives revenue from public and private entities requiring efficient and cost-
effective solid waste management programs. The Company's recycling network services
some 400 recycling customers in over 100 cities. It currently has marketing contracts with
domestic and foreign paper mills, metal, glass, and plastic processors. CR&R is currently
processing and marketing all recyclable materials from over 25 curbside programs
throughout Southern California. CR&R currently processes approximately 55,000 tons of
recyclables and solid waste materials each month.
4. b. - 1
Printed on Recycled Paper
CR&R's subsidiary, Solag Disposal, has been providing solid waste collection and materials
recovery services in South Orange County for more than 40 years. It has exclusive
municipal solid waste management contracts with the cities of Dana Point, San Clemente,
San Juan Capistrano, and Laguna Niguel, and Laguna Hills. It also has an exclusive contract
to serve the County's unincorporated Aliso Viejo community.
CR&R, through its Hawaway Storage Container Division, is also one of the leading
providers of portable steel security containers in the Western United States. For over twenty
years, through a network of seventeen regional service centers in California, Arizona,
Colorado, Utah and Washington, Haulaway has served major industries with temporary, on-
site storage space. Using portable steel security containers to protect building materials,
tools, and other equipment onjob sites has become an industry norm since this concept was
introduced by Haulaway in the late 1960s. With its own manufacturing capabilities,
Hawaway has designed and refined its containers to provide weather-resistant, theft-
resistant, completely portable security containers to meet the specific needs of its diverse
customer base.
With over 500 employees and a fleet of over 500 trucks and trailers, CR&R, including its
subsidiary companies, Solag Disposal and CR Transfer, is one of the premier environmental
services companies in California.
Names of Public Agencies Being Serviced and Brief Descriptions of Services
Set forth below are the names of the public agencies to which CR&R currently provides
waste management services and brief descriptions of the services being provided.
Orange County
City of Newport Beach
Midway City Sanitary District
City of Stanton
Mr. David Niederhaus
General Service Director
(714) 644-3055
Contract Date: 7/1/96
Customers Serviced:
City
Mr. Del Boyer
General Manager
(714) 893-3553
Contract Date: 1/1/99
Customers Serviced:
1.000 Commercial
Mr. Terry Matz
City Manager
(714) 379-9222
Contract Date: 10/23/90
Customers Serviced:
3,600 Residential
1.500 Commercial
Services Performed: All
Collection Method: I-Can Automated
Annual Tonnage: 28,504
Services Performed: MRF/Transfer
Collection Method: N/A
Annual Tonnage: 37,500
Services Performed: All
Collection Method: Frontloader
Annual Tonnage: 29.731
4. b.-2
Printed on Recycled Paper
Costa Mesa Sanitary District
County of Orange
City of San Juan Capistrano
Services Performed: MRF/Transfer
Collection Method: NA
Annual Tonnage: 31,000
Ms. Jan Goss
Director of Governmental Relations
(714) 568-4160
Contract Date: 7/1/99
Customers Serviced:
10,000 Residential
300 Commercial
Services Performed: All
Collection Method: 3-Can Automated
Annual Tonnage: 24.190
Mr. Douglas Dumhart
Principal Management Analyst
(949)443-6316
Contact Date: 12/17/96
Customers Serviced:
8,000 Residential
750 Commercial
Services Performed: All
Collection Method: 3-Can Automated
Annual Tonnage: 46,347
Ms. Lois Thompson
District Clerk
(714) 754-5043
Contract Date: 4/1/96
Customers Serviced:
City
City of San Clemente
City of Dana Point
City of Laguna Niguel
Mr. John Bressan Ms. Cindy Asher Mr. Ken Montgomery
Utilities Manager Recycling Coordinator Director of Public Works
(949) 366-1553 (949) 248-9890 (949) 362-4339
Contract Date: 8/6/97 Contact Date: 8/27/97 Contact Date: 7/7/92
Customers Serviced: Customers Serviced: Customers Serviced:
16.200 Residential 11,000 Residential 16,300 Residential
1.000 Commercial 700 Commercial 1,200 Commercial
Services Performed: All Services Performed: All Services Performed: All
Collection Method: 2-can Automated Collection Method: 2-Can Automated Collection Method: 2-Can Automated
Manual Yard Waste Manual Yard Waste
Annual Tonnage: 52.648 Annual Tonnage: 39,688 Annual Tonnage: 58.791
City of Laguna Hills
Mr. Don White
Director of Public Works
(949) 707-2610
Contact Date: 1/23/96
Customers Serviced:
5.300 Residential
900 Commercial
Services Performed: All
Collection Method: 3-can Automated
Annual Tonnage: 29.457
4. b. - 3
Printed on Recycled Paper
Riverside and San Bernardino Counties
City of Temecula
Mr. Shawn Nelson
City Manager
(909) 694-1989
Contract Date: 5/28/91
Customers Serviced:
15,000 Residential
1,500 Commercial
Services Performed: All
Collection Method: 3-can Automated
Annual Tonnage: 86.687
City of Lake Elsinore
Mr. Dick Watenpaugh
City Manager
(909) 674-3124
Contract Date: 6/9/92
Customers Serviced: 7.000 Residential
7.000 Residential
1.200 Commercial
Services Performed: All
Collection Method: 3-can Automated
Annual Tonnage: 30.165
City of Canyon Lake
Mr. Del Powers
City Manager
(909) 244-2955
Contract Date: 1/14/92
Customers Serviced:
3.600 Residential
50 Commercial
Services Performed: All
Collection Method: 3-Can Automated
Annual Tonnage: 9.165
County of Riverside
Mr. Bob Nelson
Director of Solid Waste
(909) 955-1399
Contract Date: 1/1/99
Customers Serviced: 7.000 Residential
7.000 Residential
50 Commercial
Services Performed: All
Collection Method: 2-Can Automated
Annual Tonnage: 21.288
Detailed Descriptions of Services to Municipal Customers
City of Perris
Mr. Ron Molendyk
City Manager
(909) 943.6100
Contract Date: 10/25/93
Customers Serviced:
8,000 Residential
1.000 Commercial
Services Performed: All
Collection Method: I-Can Automated
Annual Tonnage: 35.160
County of San Bernardino
Mr. Gerry Newcombe
Director of Solid Waste
(909) 387-8600
Contract Date: 7/1/98
Customers Serviced:
3,000 Residential
300 Commercial
Services Performed: All
Collection Method: Manual
Annual Tonnage: 12.150
Set forth below are descriptions in greater detail of services similar to those requested for the
City of Tustin which are provided by CR&R, through its Solag Disposal subsidiary, in five
Orange County cities.
City of San Juan Capistrano
Solag has provided solid waste collection service in the City of San Juan Capistrano since
1964. From 1964 to the early 1990's, the solid waste collection service was similar to the
service that the City of Tustin now receives - weekly manual collection.
4. b.-4
Printed on Recycled Paper
In 1990, Solag successfully launched a pilot three basket residential recycling program in
San Juan Capistrano to supplement its solid waste collection service. This program offered
three stackable baskets for the collection of newspaper, metals, glass and plastic recyclables.
The manual solid waste collection and three basket recycling program was replaced in 1993
with a fully-automated solid waste collection and recycling system. Solag provided a
smooth and seamless transition from manual to automated collection for the 8,000
residences in the City of San Juan Capistrano. That system remains in place today and
generates one of the highest recycling rates in Southern California.
The fully-automated system in San Juan Capistrano utilizes three containers that can be 35
or 67 gallons in size. Materials are placed in these containers and collected once-a-week.
Container sizes are selected by each customer based on the amount of solid waste and
recyclable material they generate. A black container is provided for solid waste and a blue
container for commingled recyclable materials and a green container is provided for the
recycling of green waste materials such as brush, branches, and grass clippings. In special
circumstances, Solag still offers manual collection service.
In addition to its highly successful residential solid waste and recycling system, the
Company provides collection service to all commercial and industrial businesses in the City
of San Juan Capistrano. The basic commercial service consists of the selection of three or
four cubic yard front loading containers, or large 10, 30 or 40 cubic yard roll-off containers.
Service is determined based on the unique needs of each individual customer with regard to
the space available for equipment and the amount of waste being generated. Compactor
service is also available for either front loading or roll off size containers.
City of Dana Point
Solag Disposal has provided solid waste collection service in the City of San Juan
Capistrano since 1964. During much of this time, the basic residential service consisted of
manual collection with customer owned containers or bags placed curbside. Service was
provided one time per week on a designated collection day.
In 1990, a pilot three basket recycling program was implemented and performed along with
the manual solid waste collection.
The three basket program was replaced in 1993 when the City selected the fully-automated
solid waste collection and recycling system. Solag provided a smooth and seamless
transition for some 11,000 residences in the City from manual collection and the three
basket recycli~g program to the fully-automated solid waste and recycling system.
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In addition to the residential solid waste collection and recycling system, the Company
provides service to all commercial and industrial businesses in the City of Dana Point.
City of Laguna Hills
Solag has provided service to this area since 1957 under a County of Orange Permit and
continued as a service provider when the City incorporated in 1994. During this time the
basic residential service consisted of manual collection with customer owned containers or
bags placed curbside one time per week on a designated collection day.
In 1990, the three basket recycling program was implemented to supplement the manual
collection program for residential customers. Solag again provided a smooth and seamless
transition.
As the reswt of a 1995 competitive bid process, a joint venture comprised of Solag and
CR&R was awarded a 10 year contract for the fully-automated collection of solid waste and
recyclables from residential and commercial generators throughout the City. Effective July
1, 1996, Solag and CR&R worked together to provide the entire City of Laguna Hills, which
previously had received part of its services from another solid waste management company,
with a smooth and seamless transition to a fully-automated solid waste and recyclable
material collection program. In addition to the residential solid waste and recycling system,
the Company provides service to commercial and industrial businesses in the City.
City of Laguna Niguel
Solag has been serving the residents of what is now the City of Laguna Niguel since it's first
homes were built. For more than 30 years, the residential solid waste collection service in
Laguna Niguel was a once-a-week manual system.
In 1993, Solag successfully implemented a fully-automated solid waste collection and
recycling system. Here again, Solag provided a smooth and seamless transition from the
manual collection program to the automated system for the nearly 16,000 residences of the
City of Laguna Niguel.
The fully-automated system utilizes two containers at each residence, either 35 or 67 gallons
in size, from which materials are collected once-a-week. Customers select container sizes
depending on the amount of solid waste and recyclable material they generate. A black
container is provided for solid waste and a blue container for commingled recyclable
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materials of all kinds. The residents of the City of Laguna Niguel also have the option to
retain manual collection service if specific circumstances dictate.
In addition to the residential solid waste and recycling system, Solag provides service to all
commercial and industrial businesses in the City of Laguna Niguel. The basic commercial
service consists of three or four cubic yard front loading containers, or large 10, 30 or 40
cubic yard roll-off containers. Service is determined based on the unique needs of each
individual customer with regard to the space available for equipment and the amount of
waste being generated.
City of San Clemente
Solag has provided solid waste collection service in the City of San Clemente since 1978.
During much of this time, the basic residential service consisted of manual collection with
customer owned containers or bags placed curbside one time per week on a designated
collection day. The billing for this service was handled through the City of San Clemente on
each customer's water bill.
In 1990, a pilot three basket recycling program was implemented and performed along with
the manual solid waste collection service.
In 1993, Solag provided a smooth and seamless transition to a fully-automated solid waste
collection and recycling system for the 16,000 residences in the City of San Clemente.
Solag also successfully converted the residential billing to Solag's computerized quarterly
billing system. In addition to the residential solid waste collection and recycling system, the
Company provides service to all commercial and industrial businesses in the City.
Service Transition Experience
CR&R has implemented service transitions in many municipalities throughout its history in
the solid waste management industry. In the past few years, in the Cities of Temecula,
Canyon Lake and Laguna Hills, CR&R in whole or in part took over residential and/or
commercial solid waste management services from another collection company which had
provided little or no recycling and yard waste service and successfully implemented
transitions to three cart, fully-automated service similar to that to be provided in the City of
Tustin. In these transitions, CR&R was required to draft and distribute educational
information, purchase and distribute the automated carts, and prepare all routing not only to
accommodate the waste collection but also the weekly street sweeping schedule. As noted
in the detailed descriptions above, CR&R and its management team have extensive
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experience with regard to service transitions, all of which have been successfully
implemented.
Participation in Community Events
Community involvement is an important part of CR&Rs commitment to the cities it serves.
CR&R's team of professionals playa key role in supporting the community by actively
participating in the following:
.
Attendance at and participation in special events within the community
.
Promotion of activities in the schools, such as science fairs, principal for day,
scholarship fundraising, and special assemblies
.
Attendance at public forums and workshops
.
Service on local committees and task forces
.
Board and committee participation on local Chambers of Commerce
.
Appointments to state boards
.
Presentations to local schools, community groups, organizations and community
centers
.
Monetary contributions in support of worthy local causes
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~~iI;;"¡;;C, .~ØRMA'fIQl!\ì RJ!',GARDIi"'lG PASJ i\.NB PRJ!',S'ENT LI'rIGA'fIOl!\ì
Neither CR&R, nor any person or entity directly or indirectly owning an interest in or
having an affiliation with CR&R, nor any ofCR&R's key personnel identified in Section 4.
d. of this bid, presently has any civil legal actions with government agencies now pending or
which have occurred in the past ten years with potential liability or actual damages greater
than $50,000 or any criminal legal actions now pending or that have occurred in the past 10
years.
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CR&R Incoporated offers the City of Tustin what is perhaps the most experienced solid
waste management team now in place in Southern California. Almost all of the CR&R's
managers have long standing experience in Orange County. Furthermore, virtually all of
its key decision makers live and work in Orange County. Together, the senior personnel
that will be involved in the administration the City of Tustin franchise have a combined
total of more than 150 years of experience covering all facets of the solid waste
management business. Their careers are summarized below.
Cliff Ronnenberg
Mr. Ronnenberg is the founder, owner, Chairman of the Board and Chief Executive Officer
of CR&R Incorporated. He has more than 35 years of experience in the solid waste
management business. During that period, he has built CR&R into one of the largest and
most progressive privately-owned solid waste management companies in Western United
States. His vision and leadership are the primary reasons why CR&RISolag can offer a
complete package of solid waste management services - residential, commercial and
industrial collection, recycling, composting, transfer and disposal throughout Southern
California. CR&R also offers storage container services across the Western United States
through its Haulaway Storage Container Division.
David Fahrion
Mr. Fahrion is the President ofCR&R's Solid Waste Management Division. He has
worked within the solid waste management industry for 25 years and exclusively for
CR&R and its affiliates during the last fifteen years. During his career, Mr. Fahrion has
worked on all facets of solid waste management business, from dispatching and routing to
contract negotiations and state facility permitting.
He is currently responsible for all ofCR&R's Orange, Riverside and San Bernardino
County solid waste, recyclable material and greenwaste collection activities as well as its
material recovery, waste transfer, compo sting and final disposal operations. He assists,
reviews, plans, and supervises all activities related to the management of the solid waste
division, participates in solid waste acquisitions, divestitures, business development,
annual projections and budgets, local, state and federal legislation, and negotiates and
manages all proposals, contracts, franchise agreements, and permits with various
governmental agencies. He presently serves on the CR&R's Executive Cornmittee
responsible for corporate growth and bottom line financial reporting and is also responsible
for implementing administrative policies, operation controls, safety, customer service and
maintenance procedures.
Mr. Fahrion also serves as President for the California Refuse Removal Council, which
represents independent solid waste collectors throughout California.
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Roger Van Valkenburgh
Mr. Van Valkenburgh is the Vice President and General Manager of Solid Waste Division
of CR&R/Solag. Prior to assuming that position, he was the Manager of CR&R's Medical
Waste Division in Seattle Washington and the Manager of its Haulaway Container Rental
Division in Kirkland, Washington.
Mr. Van Valkenburgh was formerly Vice President and General Manager of the Northwest
Division of Browning-Ferris Industries. His responsibilities included the operation oftwo
solid waste companies, transfer station, glass recycling plant and the Northwest's largest
fiber recycling company. In 1995, Mr. Van Valkenburgh served as the County Manager
for the BFI's operations in Macau. There his job involved the management of 380
employees, including all ofthe solid waste removal for Macau, street and public area
cleaning, recycling and educating 22,000 children about the value of recycling.
Tom Sciarrino
Mr. Sciarrino is CR&R's Chief Financial Officer. He is responsible for all matters
pertaining to the management of the financial and accounting affairs and information
systems tht are essential to the operation of the Company.
Mr. Sciarrino has been the Chief Financial Officer of CR&R since 1995, following over 17
years of prior experience as a financial and accounting executive in various industries
Paul Relis
Paul Relis is Senior Vice President of CR&R. He is involved in new business
development, strategic planning, regulatory affairs and government relations for the
Company. Prior to joining CR&R in early 1998, Mr. Relis had been a Member of the
California Integrated Waste Management Board, a position to which he was appointed in
1991 by Governor Pete Wilson.
As a Board Member, Mr. Relis oversaw California's solid waste system and the
implementation of AB 939. His areas of specializations as a Board member included
market development, financing for new recycling industries in California, the development
of a regulatory system for compo sting facilities and guidelines for compost quality, and
regulatory streamlining. Mr. Relis had had extensive interaction with the heads of other
state regulatory agencies, the Governor's office and the legislature, local government and
the basic commodities industries such as paper, plastics, steel and glass.
Prior to his Board appointment, Mr. Relis was Executive Director and President of the
Gildea Resource Center of Santa Barbara, California. This not-for-profit education and
research organization pioneered recycling and hazardous waste management in Santa
Barbara County and consulted on solid waste issues in the U.S. and internationally. He
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served on the State's blue ribbon task force that provided input into the development of AB
939 and U.S. EPA committees on waste prevention and recycling
Mr. Relis has authored numerous technical and policy papers on waste prevention,
recycling, conversion technology and other subjects related to integrated waste
management. He is also currently a Lecturer in the Environmental Studies Department at
the University of California at Santa Barbara.
Jim Koutroulis
Mr. Koutroulis is the President of Solag Disposal, Inc., which is now a wholly-owned
subsidiary of CR&R. He has been one ofthe key officers of Solag since 1972, when that
Company operated just five trucks. Solag is now the leading solid waste management
company in South Orange County, operating a fleet of over 100 trucks. The expertise of
Mr. Koutroulis includes the implementation of automated solid waste, recycling and green
waste programs pursuant to franchise agreements with several South Orange County cities.
George Lazaruk
Mr. Lazaruk is responsible for Governmental Relations in the South Orange County cities
and areas served by Solag Disposal, Inc. Since joining Solag in 1995, he has been
involved in the general management of Solag's operations, including the administration of
fully automated solid waste collection systems in several franchised cities.
Mr. Lazaruk has 31 years of experienced in the solid waste management industry. Prior to
joining Solag, he served for many years as Vice President and General Manager of Waste
Management's Dewey's Rubbish Division located in Irvine, with over 200 employees and
150 operational routes.
Mr. Lazaruk has had extensive experience with sales and marketing strategies in the solid
waste management business. He was one of the first to implement a customer service and
telemarketing program. He has been a recipient of the "Best Recycling Program" award
issued by the State of California.
Bob Williams
Mr. Williams is is the Municipal Recycling Manager for CR&R. He is responsible for the
operation and contract compliance of CR&R' s municipal recycling programs. His duties
include the preparation of operational plans and the assurance to city, regional, and state
officials that those plans will be properly executed. Mr. Williams also manages CR&R's
curbside recycling and recyclable materials buy back programs. He has been involved in
th preparation of waste characterization studies and has strong public relations and
presentation skills
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Maria Lazaruk
Ms. Lazaruk is the Sales Manager for Solag Disposal, Inc. She has 17 years of experience
and success in managing effective customer service support systems for solid waste
management companies, and in particularly with regard to operating an efficient roll-off
service program. She has held several key committee and board positions with the
Chambers of Commerce in the cities served by Solag. Ms. Lazaruk has also implemented
recycling programs for commercial and industrial customers.
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The financial information submitted with this bid is described and discussed in the
Transmittal Letter.
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Refuse, Recyclables and Yard Waste Collection Utilizing Automated Carts
CR&R proposes to provide single family dwelling units in the City of Tustin with weekly
automated curbside refuse, recyclables and yard waste collection service using a three cart
system in all areas of the City where automated service is operationally feasible. CR&R
proposes that the standard cart size be approximately 64 gallons. However, residents will
also be able to select a cart size of approximately 96 gallons depending on their particular
circumstances.
CR&R will purchase and provide the carts and be responsible for replacing lost, stolen or
damaged carts and recognizes that the City will own the carts at the end of the term ofthe
uanchise unless the City exercises its right to have CR&R remove the carts at the end of the
uanchise term at no charge to the City.
CR&R will provide multi-family dwelling units in the City of Tustin with cart service of the
same type as provided to single family dwelling units where such collection service is
operationally feasible - as determined by cart storage conditions at each such property - and
permitted by the City.
CR&R will also provide automated cart service of the same type as provided to single
family dwelling units (using one or more carts placed at curbside) to commercial and
industrial customers in the City of Tustin that request such service.
CR&R will continue to provide the current manual can collection service to single family,
multi-family and commercial customers where neither cart service nor bin service is
feasible.
The three collection carts provided by CR&R will be made of durable plastic and will be
equipped with a lid and wheels. Each will be stamped with a serial number for easy
identification and tracking purposes. The carts will be color coded to distinguish the use for
which they are intended. The City of Tustin will determine the appropriate distinguishing
color for each cart.
On collection day, customers will wheel the carts to the curb where they will be emptied by
automated collection vehicles under the control of a single operator. The system allows the
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truck operator to collect materials from each cart with the aid of a robotic arm without
leaving the cab of the truck. Each cart is lifted into the air and the contents are deposited
into the top of the vehicle. A video camera will project a picture to the truck cab where the
driver can view the contents of the cart to verify that it contains no contamination or
hazardous waste. A notice will be attached to the cart to make the customer aware of any
problem.
To service all of the carts, three separate collections will occur - one to collect the yard
waste from each customer, another to collect the recyclables and a third to collect the
remaining refuse.
The trucks utilized to provide the residential automated collection will be automated side
loading vehicles utilizing a mechanical arm to pick up the carts and deposit the contents in
the top of the truck.
The standardized, fully-automated containers will have sufficient volume to service all
residential needs. The use, maintenance, and manufacturer's guarantee of each automated
container is included in CR&R's proposed rate structure.
The three cart system proposed by CR&R will be utilized to provide refuse, commingled
recyclables and yard waste collection service on a weekly basis. Weekly collection
increases participation and diversion, and eliminates odor concerns with regard to the yard
waste collection container. The residents can place all recyclables in the container
designated for such, all yard waste in the container designated for that material, and all
refuse in the refuse container, thereby reducing refuse disposal and collection costs.
The automated container is equipped with a lid and wheels and will hold approximately two
to three standard cans in volume. Automated collection is the state of the art system in the
residential refuse collection industry. There are numerous reasons for automation;
aesthetics, ease of collection, keeping animals out of the trash, reduced litter, efficiency, and
lower accident and work injury rates. This system will lower insurance and workers'
compensation rates, which will be reflected in our proposed rate structure.
CR&R's proposed rate structure includes all costs, collection, maintenance, container
replacement, recyclables processing, sorting, and marketing. Again, CR&R feels that our
proposal is unique, due to CR&R's long standing recycling background, which will
ultimately ensure that the City will have markets for their recyclable materials. All
commingled recyclables will be transported to CR&R-owned recycling facilities for
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processing. Our facilities allow us to offer one of the cleanest, simplest, and most advanced
curbside recycling programs in the United States.
CR&R has over 35 years of recycling experience and was responsible for developing and
implementing California's first three container system in 1991 for the City of Temecula. By
using our three container automated system, we can recycle far more than any typical
curbside program.
Yard Waste
Recycling typically suggest the reuse of manufactured products, such as paper, cans, bottles,
plastic, even batteries. Organic materials, such as yard waste, may account for up to 30% by
weight of the material deposited in the typical landfill. These wastes not only take up a
significant portion of landfill space, but they are readily recyclable into compost, a humus-
like fluffy amendment that has many beneficial uses.
Composting is becoming a more widely used means of recycling organic materials.
However, marketing compost products has proven challenging and is not always reliable.
For these reasons, CR&R has developed diversified markets for source separated green
materials that includes alternative daily cover for landfill, mulches, and composts. As with
other recyclable materials such as paper and plastics, market secure, long-term market
outlets are essential to the operation of effective diversion programs.
CR&R will collect all yard waste with an additional container. The sortation and collection
of the compostable material is the first step, however, that is only half of the equation. The
second half of the equation is to utilized the collected material as an agent in creating
compost, or a cover material. CR&R has many alternatives for the City's yard waste. Our
current pricing will reflect the material being transported to Tierra Verde Industries'
facilities in Irvine and San Juan Capistrano, where it will be mulched and utilized as a soil
amendment and/or cover material. CR&R has also identified other sources and have signed
contracts for delivery of yard waste material.
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Multi-Family, Commercial and Industrial Refuse, Recyclables
and Yard Waste Collection Utilizing Bin Service
CR&R will provide each mwti-family, commercial and industrial customer utilizing bin
service in the City of Tustin with that number of steel 2,3 and 4 cubic yard bins as are
necessary and feasible and will provide collection service for those bins at least once every
week and more frequently if required 0 handle the waste stream ofthecustomer.
Each bin will be serviced by a commercial frontloader truck. All bins will have plastic lids,
which are much safer to handle and maintain.
Industrial accounts and construction projects will be provided with 10 cubic yard to 40 cubic
yard roll-off boxes, depending on the materials to be handled. Each box will be serviced as
necessary by CR&R's roll-off fleet. Where appropriate, construction materials will be
processed for recovery of recyclable materials.
CommerciallMulti-Family Recycling
In order to provide the City with a state ofthe art commercial recycling program, CR&R
proposes to transport the recyclable commercial waste stream to its Stanton MRF/Transfer
Station. This would enable CR&R, with the use of conveyors, magnets, and balers, to
reduce the City's commercial waste stream, as mandated by AB939. This type of
commercial recycling program is much more economical than a source separated type.
CommerciallMulti-Family Separated Recycling
CR&R will provide, as called for in the Request for Bids, a separate container for high
volume generators of recyclable materials for weekly collection. This service includes the
container, collection, processing, and marketing of the recyclable materials. All recyclables
are acceptable.
Special Services
CR&R will pick up all refuse from City owned facilities as delineated in the contract.
CR&R will provide roll-off containers to any registered nonprofit group (e.g.: boy scouts,
girls club, churches, etc.) and pay them top dollar for their recyclable materials, net of any
transportation charges.
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CR&R will spread an Anti-Drug message throughout the City.
CR&R will organize City clean up days as delineated in the contract.
CR&R will provide large and bulky item pick ups on an on-call basis.
CR&R will pick up all Christmas trees on a designated collection day, such as the second
pick up day after Christmas, free of charge. The separate collection will allow our normal
refuse trucks to operate efficiently and allow us to recycle the trees at a yard waste facility.
CR&R will clean out any overflowing bins or enclosures within 24 hours of notification by
the City, free of charge. Continual problems in certain bins or enclosures will be charged.
Processing, Transfer, Marketing And Disposal
The process represents a turnkey approach to meeting AB939's recycling goals. It includes
all the components necessary for a durable and cost effective materials recovery/transfer
operation.
CR&R's system maintains the existing commercial/multi-family refuse collection services
intact, with delivery to the Stanton MRF. All waste, multi-family, commercial, and
industrial, will be fed into the processing plant which sorts all recyclables from the waste, to
standards acceptable to the secondary materials market. The recyclables, once sorted, are
prepared for domestic and overseas markets and delivered to these markets through CR&R.
The strength of the CR&R system is that it is fully compatible with Tustin's existing
collection programs. The system is flexible because it utilizes a optimal combination of
mechanical and manual separation. It is readily adaptable to the ever changing market
conditions.
The concept components are summarized below:
1.
Solid Waste Processing
A processing system capable of managing solid waste and recyclables in its natural
state, raw and unsorted. The technology handles all wastes, commercial, residential,
and light industrial.
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II.
Recyclables Processing and Marketing
A time tested recycling processing and marketing system consisting of separation,
quality control, baling, loading, and transport with domestic and overseas marketing.
CR&R has been providing this service to most of the recyclers and recycling
programs in Southern California for the last 15 years.
II.
Residual Solid Waste Transfer
All rejects and residuals from the process will be transported to the landfill by
CR&R.
Recyclables Marketing
CR&R, with its extensive transportation and marketing network, has never had a problem
selling materials. CR&R is affiliated and has developed long term relationships with
numerous domestic and Pacific Rim mills who recycle or reform the material into a useful
and marketable end product. CR&R is a uniquely qualified recycler currently moving tens
of thousands oftons of material each month and will have no difficulty marketing the
materials generated by the City.
When prices fall for other paper handlers, CR&R will be able to maintain competitive
pricing and market outlet's when others cannot, due to existing contracts and the strength of
its control over tonnage and quality.
CR&R will make provisions for the City's representatives to inspect the paper mills as
needed.
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~iCl.S..e..DIS'PO8~L. TRANSFER, ~ND P¡ROCESSING F~CILITIES
As the provider of integrated waste management services to the City of Tustin, CR&R will
utilize the Orange County landfill system for disposal of non-recoverable materials pursuant
to the waste disposal agreement between the City of Tustin and the County of Orange.
CR&R may use one or more of the County's landfills for disposal of non-recoverable
materials generated in the City of Tustin. For example, some refuse loads that do not
contain sufficient quantities of recoverable materials to justify processing at a MRF/Transfer
Station may be transported directly to the Bowerman Landfill east of the City ofIrvine.
Some of those loads, for example, those collected later in the day, may be routed to the
Stanton MRF ITransfer Station for transfer the Brea Olinda Landfill near the City of Brea.
Loads of refuse, recyclables and/or yard waste that contain sufficient quantities of
recoverable material will be transported to one of the CR&R's MRF/Transfer Stations
identified below for processing. From the Stanton facilities, the ultimate disposal location of
non-recoverable materials from loads generated in the City of Tustin may be either the Brea
Olinda Landfill or the Bowerman Landfill. From the San Juan Capistrano facility, any non-
recoverable residue from pre-separated recyc1ables or yard waste would be transported to the
Prima Deseca Landfill near the City of San Juan Capistrano for disposal. CR&R's Perris
MRF/Transfer Station may also be used for processing and marketing recyclables.
The MRF/Transfer Stations listed below are all owned by CR&R and will be utilized to
process, transfer and/or market the waste stream generated in the City of Tustin. Based on
the transportation and handling system described in the preceding paragraph, CR&R has
more than sufficient capacity within its Company-owned MRF/Transfer Stations to allow it
to maximize the recovery of recyclable materials from the waste stream generated in the City
of Tustin.
Stanton Material Recovery Facility
11232 Knott Avenue
Stanton, California
Sorts, processes, bales, and ships the
recovered recyclables to market.
Currently handles 1800 TPD of
municipal solid waste
Processes, bales, and ships commingled
and separated recyclable material
Intermediate Processing Center
11292 Western Avenue
Stanton, California
Solag Transfer Station
Ortega Highway
San Juan Capistrano, California
PeTTis Material Recovery Facility
1706 Goetz Road
PeTTis, California
Transfers and ships commingled and
separated recyclable material, as well as
processes greenwaste
Sorts, processes, bales, and ships the
recovered recyclables to market. Also,
processes, bales and ships commingled
And separated recyclables to market.
Permitted for 1800 TPD of municipal
solid waste
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The principle offices of CR&R are at the following locations:
Corporate Office:
CR&R Incorporated
11292 WestemAvenue
Stanton, CA 90680
(800) 826-9677
Orange County Division:
Solag Disposal, Inc.
27372 Calle Arroyo
San Juan Capistrano, CA 92675
(949) 240-0446
Riverside County Division:
CR&R Incorporated
1706 Goetz Road
Perris, CA 92570
(800) 755-8112
San Bernardino County Division:
CR&R Incorporated
9828 Buckwheat Road
Phelan, CA 92371
(800) 336-0396
The Corporate Office and Orange County Division office will be the principle locations
from which CR&R will manage the services that it will provide to the City of Tustin. Each
office is completely equipped to provide billing, customer service, public relations and
franchise administration services. The Corporate Office location also serves as CR&R's
North Orange County equipment and personnel staging and equipment maintenance facility.
In South Orange County, equipment and personnel staging and equipment maintenance
takes place at a facility a few miles from the Orange County Division office just off Ortega
Highway east ofthe City of San Juan Capistrano.
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PAST EXPERIENCE WITH IMPLEMENTATION
Over the past ten years, CR&R has had extensive experience with the implementation of
various refuse, recycling, and yard waste collection programs. CR&R has implemented
fully-automated collection systems for the Cities of Stanton, Perris, Temecula, Canyon
Lake, Lake Elsinore, San Juan Capistrano, San Clemente, Laguna Niguel, Dana Point,
Laguna Hills and Aliso Viejo.
The development of the three container, fully-automated collection system for refuse,
recyclables and yard waste was pioneered by CR&R in 1991. In October of 1991, CR&R
implemented this revolutionary system for the residents of T emecula as the first of its kind
in the State of California. Since its inception, this three container fully-automated system
has never diverted less than 50% of the residential waste stream in any of the Cities that are
serviced by CR&R. As with the City of Tustin, this system is the program of choice in most
Requests for Bids and Proposals issued by municipalities throughout California. As the
developer of this program, CR&R believes that this is the most customer friendly program in
the State today, as well as the only program that can guarantee a 50% diversion of the
residential waste stream.
IMPLEMENTATION SCHEDULE
CR&R accepts the phase-in program, as amended by the addenda, proposed by the City for
the implementation of the automated cart system. CR&R will meet the requested start date
of July I, 2000 with its existing personnel and inventory of equipment. CR&R intends and
believes it will be able to implement the City's phase-in program in advance of the schedule
prescribed by the City.
Procurement Of Vehicles and Carts
CR&R will have no difficulty purchasing vehicles to the extent that additional vehicles are
needed to serve the City of Tustin. By way of example, in 1993, CR&R purchased 35 new
fully automated trucks to serve the cities of San Clemente, Dana Point, San Juan Capistrano,
and Laguna Niguel. The purchases were concluded using 100% internal financing at some
of the most competitive rates available in the industry. In fact, CR&R was able to obtain
financing at rates lower than the contracting cities could themselves obtain.
CR&R has a long standing good relationship with the proposed manufacturer of the carts it
intends to use in the City of Tustin. Thus, CR&R believes it can secure all of the carts
5g- 1
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needed to provide service in the City of Tustin well within the time frame established by the
City for the phase-in of service.
Procurement Of Personnel
Prior to the hiring of any personnel for the purposes of providing services in the City of
Tustin, CR&R would offer employment to qualified and properly licensed and authorized
personnel employed by the present solid waste services provider. Applicants seeking
employment in CR&R operations would be scheduled for an interview which would be
conducted by its operations manager. Applicants successfully completing the interview
process wotÙd be required to undergo a pre-placement physical examination and drug
screening.
New employees receive CR&R's company orientation. A training session with the fleet
manager would be performed to acquaint the new employee with the particulars of the
equipment and how to carry out the pre-trip inspection and Vehicle Condition Report. New
employees are hired on a three month probationary period. During this probationary period,
a route supervisor would monitor the prospective driver's progress in developing the skills
necessary to perform the assigned job responsibilities.
In six to eight weeks, the probationary employee would be placed on a route as a primary
driver and given the responsibility of completing his assigned route. The performance of the
driver would be continually monitored by the route supervisors.
During past transitions from manual to automated service in other cities, CR&R successfully
used these procedures to train employees in the operation of the new automated vehicles.
Applicants seeking employment in CR&R office administration wotÙd be scheduled for an
interview conducted by its office manager. Applicants successfully completing the
interview process would be required to undergo a pre-placement physical examination and
drug screening.
New employees receive CR&R's company orientation. A training session with the office
manager would be performed to acquaint the new employee with the particulars of the
computerized billing system and company policies and procedures. New employees are
hired on a three month probationary period. During this probationary period, a customer
service supervisor would monitor the new employee's progress in developing the standard of
skills necessary to perform the assigned job responsibilities.
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All of the CR&R operations and office personnel are continually trained in safety and
professional conduct while performing their assigned duties.
Billing And Fee Collection Services
CR&R will have no problem integrating customer information from the City of Tustin into
its computer database. A state-of-the-art computer program has been specially designed to
meet the specific needs of the Company's customers and the cities it serves.
CR&R is equipped with a premier computer program allowing ease of operation by
customer service representatives and operations personnel. The system allows access a
mtÙtitude of information as it relates to CR&R's service. This program allows customer
service representatives and operations personnel to respond quickly to requests for service,
promptly resolve complaints and address the concerns of the City of Tustin in a timely
manner.
The general information available in the tracking system includes, but is not limited to:
Name, account number, address, and billing location of each account.
Service notes pertaining to specifics of the customer account, including the time and
date of phone calls, items discussed during the phone conversations and the service
representatives that responded to the calls.
Dates of bulky-item pick-ups, missed pickups and types of violations.
Container identification numbers linked to the service address where the container
was assigned.
Customer billing history, type of service, and scheduled collection days.
CR&R has the ability to create detailed reports using the above information through
sorting by date, route, container size, violations, type of service, street names,
driver's name, etc. This data is readily accessible and is made available upon request
by CR&R's contracted cities. To protect this information from loss or corruption, at
the end of each day the data is updated onto a back -up system and stored off-site.
Determination Of Routes
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Each collection route will be determined through the use of a computerized grid system and
listed sequentially. This system allows CR&R's field operations to provide maximum
efficiency with a minimal amount of collection vehicles on surface streets. CR&R drivers
are trained to respond to instances of significant traffic congestion and other emergency
conditions and to inform our dispatch of such circumstances. Dispatchers will then
accordingly modifY any collection route in order to maintain uninterrupted service to our
customers.
All ofCR&R's collection routes are reviewed at a minimum of once per year with any daily
changes in routing performed by the designated foreman and approved by the CR&R
Operations Manager, and General Manager.
As noted in Section 3, CR&R plans to implement the routing schedule set forth below.
Although this schedule does not cause all residential collections to occur on Thursday and
Friday, CR&R believes that this schedule can be implemented with no disruption to the
customers.
Residential:
MtÙti-Family and Commercial:
Commercial recycling:
Industrial and Roll-Off:
Bulky Item:
Monday through Friday
Monday through Saturday
Monday through Saturday
Monday through Saturday
Monday through Friday
5 trucks
4 trucks
I truck
2 trucks
I truck
Operating Procedures
CR&R maintains detailed policies and procedures relating to operational and customer
service activities. Because of its long history in providing solid waste management services,
CR&R has developed systems and controls to accommodate the changing needs of each city
it serves.
Customer Service
CR&R has in place a state-of-the-art computerized customer billing system which will
provide immediate on line assistance to each customer requiring assistance or general
information. CR&R's customer service representatives are continually trained.
Each ofCR&R's service vehicles is equipped with a two way radio system for
communication with the dispatcher, customer service representatives, and the maintenance
yard. Urgent customer service calls may be handled through direct communications
between the dispatcher and the route driver.
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CR&R's key management personnel conduct weekly meetings to review details of any
program changes, and to identify and address any concerns which may exist. This is also
used as an opportunity to exchange ideas which may improve present methods of operation.
A general office meeting is conducted one time each month to distribute information,
provide training, and promote a team building atmosphere. These meetings are conducted
by the Office Manager and attended by management personnel.
Safety Training
The CR&R Safety Director conducts meetings with all drivers and maintenance personnel
one time each month. Topics relating to safe operating procedures are taught in both
English and Spanish. Personnel may bring to his attention any unsafe working condition
which may exist for the immediate attention of management.
Delivery of Carts
CR&R will pre-arrange a delivery site approved by the City of Tustin to stage the assembly
and distribution process. As CR&R has experienced in past conversions in cities of similar
size the delivery process can be accomplished in a period of two weeks.
Delivery of commercial, multi-family and roll off bins will be accomplished over a two
week period using a combination of CR&R and container manufacturer delivery vehicles.
This process would take approximately ten working days based on the number of bin
accounts provided by the City.
Community Relations And Promotion
CR&R realizes the importance of a successful educational program to meet the goals of any
residential and commercial solid waste collection and recycling program. In an effort to
provide the cities serviced by CR&R with the best available material, a percentage of the
collection fee, in accordance with state law AB 939, is set aside in an educational fund. This
money is then used to produce and distribute the educational materials approved by each
City. Outlined below are some of the ways CR&R has successfully approached the public
education process in the other cities it services.
Meeting With City Staff
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Seven to eight weeks before an implementation of any new residential and commercial
integrated waste management program, CR&R will arrange a meeting with the designated
City staff and CR&R's City Liaison. Together we review the developed informational
material and then schedule an introduction to the residents.
CR&R has a successful history in providing smooth and seamless transitions of service for
the jurisdictions we presently service. Some of the selected methods we have used to
accomplish this are listed as follows:
A letter from the Mayor or designated city person introducing the new program to
the residents and businesses.
A mailer explaining the program and discussing the different options available; such
as container sizes, etc.
A card stating the delivery date of the containers.
An 8 1/2" by II" laminated information card is included as part of the delivery ofthe
containers which describes the service and types of materials to be recycled.
Item's #1 through #3 are distributed by mail and item #4 is attached to the customer's
container at the time of delivery. Upon completion of these tasks, CR&R executes the
second phase of the community education process.
Once the containers have been delivered, CR&R will implement a full range of public
relations strategies to encourage participation in both the residential and commercial
integrated waste management programs. Upon completion of our initial meeting with the
City Staff, several alternatives are outlined to promote solid waste collection, green waste
and recycling activities.
Press releases, advertising, media interviews, feature articles, and letters to the editor, as well
as public service announcements and the use of public access television are some of the tools
CR&R enlists in it's media campaign. These avenues of information have proven successful
to CR&R in the past and will play an integral part to the success of the program in the City
of Tustin.
Our team of professionals playa key role in promoting the integrated waste management
programs within the cities we serve by actively involving themselves in the activities and
fund-raising needs ofthe community.
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Community involvement has always been an important part of CR&R's commitment to the
cities it serves. We accomplish this in several ways.
Attendance and participation in special events within the community
Promotion of activities in the schools, such as science fairs, principal for a day,
scholarship fundraising, and special assemblies
Attendance at public forums and workshops
Serving on local committees or task forces
Board and committee participation on local Chambers of Commerce
Appointments to state boards
Presentations to local schools, community groups, organizations and community
centers
Monetary contributions in support of worthy local causes
CR&R carries a wide array of material in both English and Spanish that are used as handouts
at speaking engagements, special events, or placed in public information areas within our
cities.
Preparation Of Procedures
Upon award of the City of Tustin contract, CR&R will place into effect its proven
procedures to achieve a smooth transition of service for the residents and businesses in the
City of Tustin. Each member of the transition team participates in the preparation process in
the area relevant to his or her area of expertise and will make recommendations or
adjustments necessary to adapt to the unique needs of the City. This team of experienced
professionals will be directed by the General Manager who will serve as the primary contact
throughout the duration of the contract.
5g- 7
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Section 5. h.
CUSTOMER SERVICE AND BILLING
Customer Service
CR&R has Customer Service Representatives located at the Company's principle offices in
both Stanton and San Juan Capistrano. The Customer Service Representatives are available
on regular collection days (Monday through Friday) from 8:00 a.m. until 5:00 p.m. and on
Saturdays from 8:00 a.m. until 12:00 p.m. CR&R's staff includes both English and Spanish
speaking Customer Service Representatives to better assist residents of different ethnic
backgrounds.
Each of CR&R's Representatives has been prepared to assist customers in a courteous and
professional manner on a wide variety of questions including missed pick-ups, spills and
litter, collection schedule and routing changes, container problems, improperly prepared set-
outs, noise complaints and traffic issues. They are continually trained to properly handle
customer requests at the time of the first call. All phone calls received after hours and on
Sundays are recorded on an answering machine and are attended to the following business
day.
Special steps will be taken to train CR&R's Customer Service Representatives to handle
customer calls during the transition to new service in the City of Tustin.
CR&R will have no problem integrating customer information from the City of Tustin into its
computer database. A state-of-the-art computer program has been specially designed to meet
the specific needs of the Company's customers and the cities it serves.
CR&R is equipped with a premier computer program allowing ease of operation by customer
service representatives and operations personnel. The system allows access to a multitude of
information as it relates to CR&R's service. This program allows customer service
representatives and operations personnel to respond quickly to requests for service, promptly
resolve complaints and address the concerns of the City of Tustin in a timely manner.
The general information available in the tracking system includes, but is not limited to:
Name, account number, address, and billing location of each account.
Service notes pertaining to specifics of the customer account, including the time and
date of phone calls, items discussed during the phone conversations and the service
representatives that responded to the calls.
5. h. - I
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Dates of bulky-item pick-ups, missed pickups and types of violations.
Container identification numbers linked to the service address where the container was
assigned.
Customer billing history, type of service, and scheduled collection days.
CR&R has the ability to create detailed reports using the above information through
sorting by date, route, container size, violations, type of service, street names, driver's
name, etc. This data is readily accessible and is made available upon request by
CR&R's contracted cities. To protect this information from loss or corruption, at the
end of each day the data is updated onto a back-up system and stored off-site.
CR&R fully recognizes that the customer is number one and must always be satisfied to allow
the Company to be successful. CR&R will initiate, as we have in other contract cities, a
program where customer input is continually requested through a "Customer Satisfaction
Report" regarding CR&R's service performance. This type of program will ensure that the
community continually gets an opportunity to grade the performance ofCR&R's employees,
the appearance of its equipment, and the overall effectiveness of the Company's implemented
programs.
Billing
Early in the implementation process, CR&R will work with representatives of the City to
determine which multi-family and commercial customers are to be billed by the City and
which are to be billed by CR&R so that a smooth transition can be ensured. The billing terms
set forth in the Franchise Agreement are consistent with the procedures normally used by
CR&R.
Complaint Process
All customer complaints will be directed and handled by CR&R. CR&R will record all
complaints received by mail, by telephone, or in person (including date, name, address of
complainant, and nature of complaint). CR&R will use its best efforts to resolve all
complaints by the close of business on the same day on which the complaint is received if
received prior to 10:00 a.m. and by the close of business on the next business day if the
complaint is received after 10:00 a.m. In addition, CR&R will designate a Government
Liaison who will be responsible for working with the City Manager or the City Manager's
designee to resolve any customer complaints that are not resolved by the mutual agreement of
CR&R and the customer.
5. h.-2
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CR&R has more than 35 years of solid waste and recyclable material collection, processing
and disposal experience. Throughout those years, avoiding the inadvertent collection of
hazardous waste has been a paramount concern to the Company because of the risks
associated with the collection and transportation of such materials and the environmental
damage that might be caused by their disposal.
As a restÙt ofthe experience and know-how of CR&R, the City of Tustin will enjoy the
benefits of the following measures which CR&R will implemented in various phases of the
services to be offered in order to prevent the entry of hazardous waste into the waste stream
collected in the City:
Community Education - The citizens and businesses of the City of Tustin will be
alerted to the fact that hazardous waste will not be accepted in the collection process.
This fact will be broadcast throughout the community in periodic mailers to the
community, on each bill that citizens and businesses will receive, and on the
laminated cards each residence will receive identifying the scope of recyclable
materials that will be accepted through the recycling program. A hazardous waste
prohibition will also be a provision in any collection contracts that CR&R enters into
with citizens and businesses in the City.
Vehicle Cameras - CR&R's fully-automated collection vehicles are equipped with
cameras so that the operator can identify any hazardous waste that might be mixed in
with recyclable materials or green waste. If hazardous waste is identified, CR&R's
procedures for the retrieval of this material would come into play and the generator
ofthe hazardous waste would become responsible to provide and pay for its proper
disposal.
Employee Training - CR&R employees receive regular training in the identification
and handling of hazardous waste. When necessary, CR&R will contact the Fire
Department and other appropriate government agencies to ensure that Hazardous
Material situations are properly handled.
Landfill Prohibition/Spotters - With regard to solid waste delivered to the landfill,
CR&R is prohibited from delivering hazardous waste to the landfill for disposal. As
an additional precaution, the landfill employs personnel as spotters who are
responsible for identifying any hazardous waste that might be discharged from trucks
at the landfill. This is yet another point in the process where unacceptable material
5i - I
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can be retrieved for proper disposal. CR&R would have to provide and pay for
proper disposal unless the generator cotÙd be located.
Sorting Process - With regard to recyclable materials and green waste being
transported for processing and recovery, there are several times during the
performance of those services where the materials are subjected to inspection and
either both mechanical and human sorting which would cause hazardous waste to be
removed from the process. Here again, any hazardous waste would be retrieved for
proper disposal, which would be the responsibility of CR&R unless the generator
could be located.
All of the foregoing points make it abundantly clear that CR&R and not the City bears the
risk and has the obligation to make sure that generators of solid waste and recyclable
materials in the City of Tustin do not place hazardous waste into the solid waste, recyclable
materials or green waste to be collected by CR&R.
5i - 2
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In addition to the public education plans referenced in CR&R's Implementation Plan, the
following public outreach efforts will also be utilized in order to maximize the public's
familiarity with CR&R refuse collection and recycling programs.
Why Recycle?
The public education and marketing campaign will be multifaceted and conducted in two
phases. The first phase will begin prior to the first collection and will focus on introducing
the recycling program to the public. The second phase will coincide with the
implementation of our program and provide ongoing promotion ofthe program.
News Releases
CR&R will write and disseminate news releases outlining the scope, benefits, and schedule
of the recycling program. We will also develop an at-a-glance fact sheet describing details
of the program.
Feature Articles & Editorial Support
CR&R will contact appropriate editors at target media outlets requesting that the
publications and broadcast stations write and produce feature stories on the recycling
program.
Advertising
CR&R will secure an ad in the local newspaper announcing the beginning of the recycling
program to area residents. The ad will encourage participation in the program.
Programs Implementation Brochure
CR&R will develop and print an educational brochure outlining our recycling program and
how to participate.
Children's Recycling Book
CR&R has produced a children's "activity book". The book explains the need to conserve
landfill space and our natural resources along with the importance of recycling. The book
encourages children to get involved in the recycling program by asking their families to
recycle at home.
Nonprofit Groups
CR&R and nonprofit volunteers will distribute materials and talk one-on-one about the
recycling program with residents prior to the beginning of the first collection. The
5j - 1
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volunteers will arrange for updates and promotion of the program in all community
organization newsletters, school newspapers, and others on a monthly basis. In addition,
CR&R will make speakers available to public and private groups. These speakers, from the
CR&R staff and participating nonprofit volunteers, will be a valuable resource for the
education and marketing campaign.
Public Service Announcements
CR&R will begin distribution of a continuing series of public service announcements to
radio and television stations. Major television and radio stations will be targeted in addition
to local independent radio and television stations.
5j - 2
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CR&R Incorporated as a part of this bid submits, immediately following this page, signed
Addenda No. I and No.2 and copies of letters of recommendation from the Costa Mesa
Sanitary District, the City of Newport Beach, the City of Stanton, the City ofPerris, the City
of Temecula, the City of Canyon Lake, the City of Lake Elsinore, the City of Laguna Hills
and the City of San Juan Capistrano.
Printed on Recycled Paper
~an-O5-00 04:55P C;ty or Tust;n PW Deptm
P.O2
ADDENDUM NO.1
TO THE REQUEST FOR BIDS FOR
INTEGRATED SOLID WASTE ¡'vÍA."lAGEMENT SERVICES
City of Tustin
300 Centennial Way
Tustin, California, 92780
Bids Due fanuarv 18, 2000
The Request fur Bids (RFB) Documents shall be revised by addihons to, deletions
from and changes as stated in this addendum, insofar as original Documents are in
variance wlth this Addendum, this Addendum shall govern The following changes
are hereby incorporated.
The following questions were asked at the pre-bid conference on December 16, 1999.
A response is provided after each question.
Q1
¡VJny subsidmrr~s of tile Slime colI/pl1ny bid ngl11l1st meh other'
A 1: No. Each company may submit only one bid.
Q2: Does tire Cih) k"OIl' the I1lLJllber ofl1pnrtlllent buildings?
A2: No. The City has already provided in the RFB the information it has regarding
the number of multi-family buildings for which it performs the billing. It is
included on page 1-1 of Attachment 1A of the RFB. The City does not know how
many multi-family bin customers are billed directly by Waste Management,
although the total bin distribution is shown on page 1-2 in Attachment 1 B
Q3: Will the City consider re1'isio175 to tile O'1'ersion Requirements ill Section 4.4 of the
Franchise Agreement, l7!1d 1I,hen 1I'ill the 50% gol1l begin for mensurnllent purposes?
A3: Section 4.4 of the Franchise Agreement (Diversion Requirements) has been
revised in its entirety:
"The minimum amount that shall be diverted through Recycling, Yard Waste
collection, Mixed .Waste Processing, and Transformation is 50% of the total
waste stream of the City during each calendar year of this Agreement, starting
with calendar yea¡i 2001. Diversion achieved by transformation may consist of
a maximum of 10% of the total waste stream. Oty shall evaluate Company's
diversion performance at the end of 2001 and each subsequent year-end
thereafter. Should the Clty not reach this 50% diversion goal for its entire
.~dd.ndum '<0. ¡
Page 1
lIS/DO
Jan-O5-00 04:55P City or
fustin f-'W Ueptm
P.O3
waste stream, as dcterminet.! by the City, in its sale discretion, and the CitV'
deterrrunes that the Company has not. maximIzed diversion as contemplated
under this Agreement, the Companv agrees to undertake reasonable efforts to
implement programs and provide equipment nccessan in order [or the Cltv to
meet the 50% diversiL1n goal as soon as possible, and agrees thilt neither- the
CitV' nor Customers shall be rt:quirèd to expend iln)' funds whatsa,,\'er in
regard thereto In addition, if the California Integrated Waste ",fanagement
Board determmes that the City must improve its diversion, Company agrees to
undertake reasonable efforts to implement programs and provide equipment
necessary in order for the CIty to meet the 50?~ diversion goal, as soon as
possible, and agrees that neither the 'City nor Customers shall be required to
expend any funds whatsoever in regard thereto."
Q,*: Will the CIty coll5uler dell11Jmg the illlplemenrntion sclledulc for tile first phase of tl",
111ltoml1teLÍ collection program descrIbed on page 73 of tile RFB 7
A'*. Yes. The implementation schedule for the rollout of automated collection
services is revised as follows:
Phase 1 - First 50% of dwelling units
Phase 2 - Second 25% of dwelling units (75% total)
Phase 3 - Full implementation (100% of total)
Within 150 days
Withlll 195 days
Within 2,*0 days
Q5: Plense describe ti,e City's but opening proœdllres-
A5:
1. Bid opening will commence promptly at ,*:30 p.m on Tuesday, January 18,
2000 in the City of Tustin City Council chambers at 300 Centennial Way
2, Sealed Bids shall be opened by the City Clerk.
3. City Clerk shall verify that bidders have submitted the required documents.
4, City Clerk shall announce the total bid amount as specuied in Attachment 3,
Line 22 for each bid submittal
3, City Clerk will announce the apparent low bidder-
6, Members of the audience may request verbal itemization of each bid as
detailed in Attachment 3 under Lines 3, 13 and 18, All otht:r bid information
with the exception of hauler financial information marked "confidential will
be available for review within 2'* hours of the bid opening,
7- Bids award will be subject to further review and confirmation of the bid
calculations the,~dequacy of the bid submissions.
I'
Addendum No.1
Page 2
1/5/00
Jan-O5-00 04:56P City oT Tustin PW Deptm
P.O4
Q6: In Section 4.5.:\1,1 of the Franchise Agreement, the document refers to
container sizes "60 to 70 gallons" Would thc City consider revising th.::t
secÌlon to increase the size range tel 70 ~allon5?
A6: In Sechon -1,3.3.1.1 of the Franchise A,gTcement, second bullet, repldce "60 t" b7
gd!loIlS" with "60 to 70 gailuns"
This Addendum is to be incorporated in and become part of the Bid. This
Addendum No.1 must be acknowledged bv signing and dating in the signature
and date blocks below, and should be included with the Bid by attaching: it to the
returned signature page of the Franchise A~eement
CT~e?Q~
Director of PubJic Works
/~¿o
~
Acknowledged:
;:;J¿-r
Proposer's Signa ture
;/;7/00
D,1te
c f?- -HZ .:::z:;;; c. .
Company
,\dd<ndum No.1
Page ;\
1/3/00
Jan-17-00 09:16A
P.O2
ADDENDUM NO.2
TO THE REQLiEST FOR BInS FOR
iNTEGRATED SOliD WASTE YIANAGEME!'<T SERVICES
City of Tustin
JOO Centennial Way
Tustin, Californid, 927S0
Bid, Due I,muM,? 18, 2030
The ¡<è<.juco;! tor Bids (RFB) Documents slM!J b~ re\'is"d by addItions to, dck~ions ("om .\n.1
changes as Stak<i In this addendum; ¡"",for as origllld, D,xu:-lwnts are In variare€ with this
!~,l<kndum, thIS Addendum "hall gc"crn. The fol!owm¡; eho!n¡;es arc hereby IrKurporated
fhe '¡1>kdte conldhing the !::.xcef fIle of Attachment' thM "'.b m..de a,';¡il¡¡blc to the
bIdders at th" Pre-Bid meeting On Decemb..r 16, 1999 requirE'S two changl.'S that the bidder
should make b<efore submlttin¡". its propos,,]'
cc) On Rows 1 and Z in the "Monthly BlHings" whlmn, th.., Stud"r should '~nter ., formula
to eakulate monthlv bIllings by multiplÿ'¡ng the "Proposed Monthly Rate" bÿ' the
"EstunateJ N'~mber (If Service Unit,n The formul~ In th.. column for" Annual Rilling""
on Row, 1 and 2 ,;;huuld I><; rcvb"d to "" "Mon!hly BiJ!"'gs" mulhplí~d by 12,
b) In the Roll off Box Bi\lm~s"Se<.:tion, Row 17, the 'Unit:; Per Yearn 5boul..! be revi,,',j to
n,~n7 to correspond to th~ correct number (1f tons shown In Attachment", in the RFP
Th., di~k"tte contained an ¡nconeel "alue of 10,50H 10m,
ThiS Addendum 15 to bej.ncorpor¡¡ted in ane! become 11M! of Ih.. Bid. This Addendum No.
2 must be acknowll'd~cd by "gnin~ and datingJn.l.~, Sil!:l1atu~.. and date blocks below, and
should be induJeJ wIth th.. Bid bv att,...hing it to th~ r~turn",l.sq¡;nahlrC page of the
h.mchbe A\in'em"nt
C(~ ~:rDb
Director of Public Works
-.!Ä~
I 6i-/'~-
Ackno~ '/
¡:;n~¡;;t.,/~¿tç C_-
/ /1.2/0':...
Date
~>'-3 -¿--"'c..
ColIlp,'ny
""JonJ"", "" 2
Page 1
1/l4/0U
20"d
w~d..O Md u~+snl. ~c ^~~:> d1>S:ZT On-..r-""~
Co,'" Me" Rècycle,
n
~J
DIRECTORS
James A. Wahner, President
James Ferryman, Vice President
Harry S. Green, Secrelary
Nate Reade
Dick Sherrick
LETTER OF RECOMMENDATION - C. R. & R., INCORPORATED
The Costa Mesa Sanitary District entered into a contract with C R
& R, Incorporated in July, 1989 for recycling services at their
facility in Stanton, CA, beginning November 1, 1989.
Our single family residential recycling program began November 1,
1989 and we have enjoyed a good relationship with C R & R since
that time. We were the first Orange County City to enter into a
materials recovery type of recycling program. Since then,
several Orange County cities have followed our lead. We feel we
provide the most sensible and cost effective program for our
residents. There were no start-up costs for containers, equip-
ment or vehicles. The cost of the program to the resident was
$.74 per month the first year and is $.77 per month this second
year, and our participation is 100 percent. More importantly,
since January 1, 1991, our waste diversion rate is a bit higher
than 25 percent.
We have found C R & R to be straight forward, reliable and fair
in their business dealings. They have shared their vast know-
ledge of solid waste. technology and management with us and we
have passed it on to our community. We feel our relationship has
benefited the public we serve; therefore, we confidently give C R
& R, Incorporated our highest recommendation for excellence in
the field of recycling services.
Sincerely,
+~~ :}, ~~~.~
Florine T. Reichle
Assistant Manager
c:
C R & R, Incorporated
po BOX 1200. COSTA MESA. CALIFORNIA 92628-1200 . 77 FAIR'ORIVE . (714) 754-5043
CITY OF NEWPORT BEACH
P.O. BOX 1768, NEWPORT BEACH. CA 92659-1768
LETTER OF RECOMMENDATION
It is my understanding that CR&R Inc. is proposing a materials
recovery facility and transfer station in the City of Pomona and that
your City is requesting a recommendation.
In Harch 1990, the Ci ty of Newport Beach executed a 10 year
contract with CR&R, Inc. in which the company provides a processing
service of all City collected refuse for the purpose of recycling.
Since the service cæru~nced on January 2, 1991, we have experienced no
difficulties with C1\&1\, Inc. service. In fact, company officials have
noted they have exceeded the 25% guaranteed recycling rate in the
first month of operation. City residents have been very appreciative
of this recycling process, wherein they voluntarily separate various
cãte;!ories of waste within their own refuse containers.
Our City is the only full service municipality in Orange County.
As such, we mana;!e our own solid waste operations including
collection, transfer, and recycling. Our observations of both CR&R,
Inc. and CRT, Inc. staff, equipment, and facilities have always been
extremely positive. Their staff have always been responsive, their
equipment clean and well maintained, and their facilities well kept.
In ~ummary, C1I&1<, Inc have met their commitments to the City in a
positive, competent manner. If you have any questions, please call me
at (714) 644-3055.
Sincerely,
.1bt t-J ~ ~ ~ "-
DAVID E. NIEDE1IHAUS, DIRECTOR
GENERAL SERVICES DEPART~IENT
DEtJjmp
3300 N<:wporc Boulevard. New¡:orc Beach
l';({ij,;, ~
rP-o [..~:':-'-"""
l( l L 'rZ:;i'-::
";'r,(fÄ~,7
10660 Western Avenue, P.O, Bõ~ "J"
Stanton. California 90680 . (714) 220.2220
LETTER OF RECOMME@ATlON - CR&R, INCORPORATED
The purpose ,of this letter is to provide you with information
which may bè useful to yOU in regard to CR&R, Inc.
The City of Stanton and CR&R, Inc. continue to maintain an
excellent working relationship, which we believe is one of
the best examples of "Public-private Partnership" in the
State of California.
Through the establishment of unique and innovative agreementS
and programs, CR&R, Inc. has provided for the waste
management needs of our communitY. The implementation of
those agreements has generated significant revenues to the
City of Stanton, as well as allowing Stanton to comply with
its legal requirements.
current agreements in place between the City of Stanton,
CR&R, Inc., include the following,
and
1.
Transfer Station\Recvclin~ ?acilitV Ooeration -
Through a lease agreement betWeen tfo.e City of Stanton, anè.
Stanton Redevelopment. Agency, CR&R operates a "state of
the art" solid waste'transfer station which is located in
the City of StantOn. In addition, construction of a
4Ø,ØØØ square foot recycling facility is underWay, which
will meet the recycling needs of the City of Stanton, and
many other California Cities.
Acrree.ent f££ ~ Intecrrated Waste Hanaqe~ent procrra~ ~
i
The City of Stanton recentlY entered into a comprehensiv~
agreement for an Integrated Waste Hanagement Program witn
CR&R, Inc. The agreement provides for the implementation
of a recycling program and all other requirements
necessary for the city of Stanton to meet it'S obligation
under AB939. In addition, it provides for the automation
of the residential collection system, which will be of
significant benefit to the citizens of Stanton.
2.
"
3. Street Sweepinq ~
CR&R, Inc. provides contractual street sweeping services
to all residential and commercial areas within the city
liroits.
In providing services in each of the above areas, I have
found CR&R, Inc, to be professional and responsive to the
needs of the City and the community, and extremely
knowledgable in the area of waste manageroent, We anticipate
the continuation of a long-term, positive working
relationship with CR&R, Inc.
Please contact me if you require any additional information.
Sincere~
"P/<-
Terry S. H Z
City Hanager
o'
CKlrY ((j)lF JE>JEJ]1JRK§
101 NORTH "0" STREET
PERRIS. CALIFORNIA 92370
TEL: (714) 943.6100
Re: CR&R Recommendation
It is my understanding that CR&R, Incorporated (CR&R) is proposing to provide the City of Murrieta
with an integrated solid waste management system and they have requested a letter of recommendation
from the City of Perris.
CR&R has been providing the City of Perris with its collection and disposal services since May 1991,
when they purchased Perris Disposal. Since that time, they have automated our entire residential
collection system, including barrels, trucks, and public education brochures. Under a public private
partnership with the City of Perris, we are preparing to construct a state of the art material recovery
fCII:ility (MRF), that will be capable of separating recyclables and compostables from the mixed solid waste
system. The Perris MRF is fully permitted by the State of California, as well as it has gained support
as a regional MRF in the County of Riverside's master plan for a system approCII:h to solid waste
management. The Perris MRF construction is slated to start in early July 1994, with an opening of
somewhere between April and July 1995.
As you can see, our short affiliation with CR&R has not only met our expectations, but far exceeded them.
Their approCII:h has been professional, innovative, and responsive to the many needs of our unique
community. I would recommend CR&R to any City that is embarking on the task of creating a fully
integrated solid waste management system to comply with AB939 and to meet the needs of their citizens.
Cl/&R's equipment and facilities are clean and well maintained, which reflects positively upon our
community. Their staff has always been very responsive, knowledgeable, straight forward, fair, reliable,
and always sharing their vast knowledge of solid waste management.
Please contCII:t me if you require any additional information.
recommendation.
Thank you for considering my
SiT}.cere ,
l ~¿¿/~~~~
i Is. Judith C. Baitinger 4
Mayor ,-
JCB:a£a
cc: CR&R Incorporated
City- of Temecula
43174 Business Park Drive. Ternecula, California 92590 (9091694-1989. FAX (9091 694-1999
LETrER OF RECOMMENDATION
CR&R Incorporated has been the exclusive franchised solid waste hauler for the City of
Temecula since October I, 1991. Their franchise agreement was awarded by the City Council
after an extensive Proposal evaluation. Not only did CR&R meet the requirements of the
Request for Proposal but, they included additional services as well.
CR&R provides the residents of the City of Temecula with state of the art solid waste collection,
using fully automated trucks with a three container system that is diverting over 50% of the
residential waste stream. Citizens separate greenwaste into one container, commingled
recyclables into a second container, and trash in the third container. The greenwaste is taken
to a composter and the recyclables are processed and sold by CR&R for ultimate post consumer
product manufacture. The CR&R system has worked so well that we are confident Temecula
will meet or exceed the 25% recycling rate mandated by AB 939 în January, 1995. CR&R also
offers recycling programs for commercial accounts.
The franchise agreement calls for CR&R to construct a Materials Recovery Facility (MRF)
which will eventually handle Temecula's waste stream. This facility is fully permitted with its
location on Goetz and Ellis Road the City of Perris. The opening of the MRF should guarantee
that Temecula will meet the January, 2000 recycling requirement of 50%.
CR&R provides the City of Temecula quick and courteous service. They are responsive to staff
requests and strive to offer our citizens the best solid waste service possible.
It is a pleasure to work with the CR&R staff. They are knowledgeable professionals who are
positive and enthusiastic more than two years after the award of the franchise agreement and it
is my privilege to give them an unconditional recommendation, If you have any further
questions, please contact Phyllis L. Ruse, Senior Management Analyst at (909)694-6480.
Sincerely.
CITY OF TEl'vŒCULA
a~Q~i
Ron Roberts
Mayor
01039-1
"\~'p\,~omJ.'",,
C.![!'.Y OF CANYON LA~E
john GI.rdinclli
M;\)'"r
B.rr)' R¡cnwr
Muy,'rPrnTcm
Ann.bell.Bates
C"unoil ~t"mbcr
Gene Bourbonnais
("uceil ~kmbcr
Alfred W. Trombly
Council ~I<n'bcr
This letter is written on behalf of CR&R, Incorporated, based on
our understanding that the firm is presently in the process of
responding to Murri~ta'5 request for proposal for an i~tegrated
solid waste management and recycling system for your City.
CR&R was one of th~l. refuse disposal firms which responded to
the City of Canyon tak.'S RFP for such services in the Fall of
1991. Following anlintensive review of all these proposals by
a technical evaluatlon panel created for this specific purpose,
CR&R's proposal was! evaluated as by far the-best in virtually
every aspect. The subsequent Franchise Agreement negotiation
process was similarly productive and responsive, and by January,
1992, CR&R assumed responsibility tor providing refuse disposal
services to our res~dents for an extremelY reasonable rate, and
for financing the city's Source Reduction and Recyclicg Element
and Household Hazardous waste Element. Several months later,
following the lead time necessary to ~cquire ~dditional equipment
and to complete thel transition from the prior hauler, recycling
services W$re also implèmentad.
I
At every stage, CR&R (DBA "Canyon Lake Environmental") has b~en
~ pleasure to work with. It can truly be said that this is one
firm which indeed "boes the extra mile," both with respect to the
provision of ser~ic'e and the many commitments it has made to the
community in that r!e9ard (includin9 regular bulky item pick-ups,
household ha~ardous wast~ roundups, Christmas tree recyclin9 and
community education and promotion), and particularlY in terms of
the outstandinq pu lio relations it continu~lly cultivates.
.-","",.,...
CR&R'. performance to date in meetinq it~ contractual AB 939
obligations has been emarkable, and ita respectful, diplomatic
approach to addresain~ public concerns and problems is a credit
to both CR&R and the City. Its automated 3-can system (cominqled
recyclables, gr.en wa~te, and nonrecyclable trash) has worked
so well that Canyon Ldke is already well ahead of its 1995 25\
diversion obliqation, land well on the way to its 2000 50\ <¡oal
(whioh will certainly be assured once its planned MRF becomes
operational in the near future). Althouc;¡h our expectations were
high to bec;¡in with (w~ich is why we selected the firm in the
first place), somehowlCR&R continues to exceed such expectations,
and we couldn't be mOre delighted,
Farticular mention mu~t be made of the outstandinq relationship
we have enjoyed from ¡'he outset with CR&R's management. and the
ease with which we're able to work through any problems which
may arise from time to time (which are few and far between).
Eased on our extremely positive experience with CR&R over the
past two years, we have found it to be a firm which is definitely
"ahead of the curve" in the area of professional solid w""ste
management and recycling.
I
At all levels of its brc;¡ani~ation. we have 'found CR&R's ~taff to
be responsive, reliable, cooperative ""nd generally outstanding.
They really know their business, and are always refreshinglY
forthright and genuin~ in their relations with the City. They
enjoy our full confidknce, and we have no doubt they will enjoy
yours as well should CR&R also be awarded the franchise in your
City. with that in mihd, we have much appreciated the opportunity
of providing thi~ letfer of recommendation o~ their behalf.
I
\
I
I
City of .LakE £t~inor¿E
(;OI"Y ~1. W...<hbunI
Mayor
¡'r..-d Pomin¡:ucz
Mayor PmTcm
r."'l"gc (;. AII>ogl
Couneilm:,"
Ten' Chcrveoy
C"""eil~","""
J¡u. W¡",kr
Council,",,"
subject:
Letter of Rccommendation - CR & R Inc.
Ron M..kndylt
C¡¡y Mam>gt:r
CR & R Incorporated has been the exclusive franchised solid
waste hauler for the City of Lake Elsinore since
The franchise was awarded by the city council after extensive
negotiation and contract development. Not only did CR & R
offer the standard services, but they included a number of
additional services requested by the city Council.
CR & R has provided the city of Lake' Elsinore with fully
automated trucks and a three container system that is state of
the art in waste collection and diverts over 50% of the
residential waste stream.
CR & R provides the city of Lake Elsinore with courteous and
responsive service. They are responsive to staff request and
make' every effort to offer our citizens the best waste
collection service possible.
It has been a pleasure to work with the management and staff
of CR & R, as they are knowledgeable professionals who are
enthusiastic about providing service to our community. I
would unconditionally recommend CR & R to any city interested
in thorough and expedient service.
If you have any further questions, please don't hesitate to
contact me.
'~relYÞr W bÚ----
GARY WASHBURN, MAYOR
CIT LAKE ELSINORE
15° ~oull; dV(."n ¿;h<d. .J.'"k< é'L"¡,w". Cd yZ5_'0 . (3<[,/,-/',0"c (90y).Ó7c/-51ZC/ 'I«: (yOy) Ó'1~.23v2
January 18, 2000
MEMBERS OF THE CITY COUNCIL
COLLENE CAMPBELL
JOHN GREINER
wYATT HART
Gil JONES
DAVID M. SWERDLIN
32400 PASEO AOELANTO
SAN JUAN CAPISTRANO, CA 92675
(949) 493-1 171
(949) 493-1053 (FAX)
CITY MANAGER
GEORGE SCARBOROUGH
Mr. William A. Huston
City Manager
CITY OF TUSTIN
300 Centennial Way
Tustin. CA 92780
Dear Mr. Huston:
This letter is to verify Solag Disposal Company, Incorporated's service record and work
history with the City of San Juan Capistrano, Solag Disposal has been providing the City
with its solid waste handling needs for over 30 years. They currently hold a 10-year
exclusive franchise agreement which expires in January 2007, with the City for residential,
commercial and industrial collection service.
In my 11 years with the City of San Juan Capistrano, we have had complete and
uninterrupted service with no major problems. As a matter of fact, I have received fewer
complaints regarding Solag Disposal's service than any other hauling firm in my tenure in
local government.
So lag Disposal also provides the community with many philanthropic efforts such as refuse
service for San Juan Summer Nites Concert Series, Shop & Dine events, Swallow's Day
Parade and Festivities. Solag also is a participant in our low flow toilet program.
They have demonstrated a commitment to our City on which we can depend. If you would
like to discuss Solag Disposal's qualifications in more detail, I would be willing to talk with
someone personally. Please feel free to call me at 949/443-6317.
J:j:J
IS
San Juan Capistrano: Preserving the Past to Enhance the Future
.
CITY OF LAGUNA HILLS
City Council
MAYOR
Joel Lautenschleger
MA YOR PRO TEMPORE
Randal J. Bresseffe
COUNCIL MEMBER
Cindy Greengold
R. Craig Scoll
L. Allan Songstad. Jr
January 17, 2000
Subject: Letter of Recommendation for SOLAG DisposaIlCR&R, Inc.
SOLAG Disposal / CR&R, Inc. (hereafter "SOLAG") has been the exclusive franchised
solid waste hauler for the City of Laguna Hills since July 1, 1996, with the exception of
an area annexed to the City on that same date. Their franchise rights will be extended to
this annexed area effective July 1,2001.
SOLAG became the exclusive franchisee in Laguna Hills after a lengthy competitive
proposal process. Although selection was not based solely on price, the pricing structure
proposed by SOLAG was the lowest. In fact, Laguna Hills continues to enjoy the second
lowest residential disposal rate in the County.
It should be noted that since the award of the franchise, SOLAG has performed
exemplary service. Of special noteworthiness, was SOLAG's handling of the transition
from a traditional trash pick-up to a fully automated, three-barrel waste disposal system.
Needless to say, if the transition of service had not been smooth, then resistance to the
new system would have been unnecessarily magnified. Fortunately, SOLAG's handling
of the transition was so thorough, that the transition was surprisingly seemless. And, the
City is currently diverting over 50% of its residential waste stream.
Based on our experience with SOLAG, we would recommend their services to any other
city. .
Sincerely,
\
~~~
(l:~~ra¡
25201 Pas eo de Alicia. Suite 150. Laguna Hills, Caiifornia 92653. (949) 707-2610. FAX (949) 707-2614
website: www.ci.laguna-hills.ca.us