RFP for Solid Waste, Recycling and Organics Collection Services 05-07-13

7/30/2019 RFP for Solid Waste, Recycling and Organics Collection Services 05-07-13

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CITY OF CARMEL-BY-THE-SEA

STAFF REPORT

TO: MAYOR BURNETT AND COUNCIL MEMBERS

THROUGH: JASON STILWELL, CITY ADMINISTRATOR

DATE: 7 MAY 2013

SUBJECT: RECEIVE THE DRAFT REQUEST FOR PROPOSALS (RFP)

FOR SOLID WASTE, RECYCLING AND ORGANICS

COLLECTION SERVICES AND PROVIDE COMMENTS ON

THE RFP TO THE MONTEREY REGIONAL WASTE

MANAGEMENT DISTRICT

RECOMMENDED MOTION

Receive the Draft Request for Proposals (RFP) for Solid Waste, Recycling and OrganicsCollection Services and provide comments on the RFP to the Monterey Regional WasteManagement District.

BACKGROUNDOn October 2, 2012, the City Council authorized the City Administrator to sign a letter ofagreement to engage in a competitive Waste and Recycling Franchise Agreementprocurement process with the Monterey Regional Waste Management District(MRWMD). MRWMD has been working with a consultant and staff from the ninemember agencies to coordinate the model franchise procurement process, resulting in theattached draft Request for Proposals (RFP) and a draft model franchise agreement

(Attachment A of the RFP). The RFP will be used to solicit proposals from companiesinterested in providing solid waste, recyclable materials and organic materials collectionsto participating jurisdictions. A fact sheet on the RFP Process is attached for reference.

This item is on the Councils agenda to provide comments on the draft RFP to MRWMD.MRWMD will review the draft RFP and member agencies comments on May 17, 2013and then release the RFP on May 31, 2013. Proposals will be due on August 16, 2013and City Council would approve a new franchise agreement in January-March 2014. TheCitys current franchise agreement expires on June 30, 2015.

The RFP will request that proposers submit a Base Proposal for collection services and

programs that are similar to the current scope of services provided to jurisdictions such asresidential trash, recycling and green waste collection and commercial trash and recyclingcollection (pages 14-17) and curbside battery collection. In addition, proposers willsubmit Alternative Proposals for new programs that include food scrap/organicscollection, expanded bulky residential pickup and public education and outreach (pages17-20). Proposers will submit separate cost proposals for each participating jurisdictionthat reflect services, community profile and other factors. The City will be able to

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consider the cost proposals associated with these various services as part of a newfranchise agreement.

Proposers shall provide new collection vehicles and will have the opportunity to proposethe use of alternative fuel technology and shall also provide new containers using color-coding of dark neutral for solid waste, blue for recycling and green for organics and

labeling of acceptable and prohibited items for various service types. Proposers have theoption of using either MRWMDs or their own recycling processing facility.

FISCAL IMPACTThe RFP is intended to assist jurisdictions in achieving high quality services at the lowestprice, including possible discounts for regional services. The Citys current franchiseagreement is about $2 million annually.

ATTACHMENTSRFP Process Fact Sheet Prepared by MRWMDDraft RFP

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Fact Sheet on MRWMD Participating Agency RFP ProcessQl: What is the purpose of the RFP process?Al : The RFP process is intended to identify the best value (high quality service at the lowest price) FranchiseWaste and Recycling service provider for ea ch of the participating agencies. These services, for which amonopoly right is granted, have not been subjected to competition in over 30 years. The RFP process wasdeveloped by both the District and all part ic ipating agencies.Q2: What services are being requested through the RFP process and how are they different from the currentservices provided by the current franchised hauler?A2: The RFP is soliciting proposals for the services that each participating agency currently receives as a"base proposal". In general, these services include trash, recycling, and green waste collection from residentsand trash and recycling collection from businesses and institutions. The base proposal also provides fornumerous public services (e.g., at large events) and services to agency facilities at no charge to the agency.

In addition, the RFP is requesting pricing and service approaches fo r additional services that will improverecycling and waste diversion in the community. Those services include collecting food scraps from residents forrecycling, converting the current pilot program for business food waste recycling into an ongoing program,creating a bulky-item re -use collection program in cooperation with the District's "Last Chance Mercantile", andexpanding recycling education and outreach to the public. Each agency will be able to consider the cost andeffectiveness of these programs before making any commitment regarding implementing them.Q3: How long is the proposed contract going to last once a contractor is selected?A3 : The term of the contract is 10 years with an option to extend the agreement up to 5 more years.Q4: What facilities are the proposers expected to use fo r handling the collected material?A4 : Proposers are invited to offer the use of their own re cycling processing facility (known as a single-streamMRF) to process and market recyclables. In addition, the District is offering its MRF to any proposer (e .g., if apropose r does not have a cost-effective local processing facility of their own) . This public option is intended tocreate a more competitive environment where companies who have not made significant capital investments ina MRF ca n compete with those who have. Proposers are directed to use District facilities for all other materialhandling (i.e ., composting, salvage/ re-use, landfill, etc.).QS: How will the proposers provide separate costs that reflect the unique cost of service in each of theparticipat ing agencies to prevent one agency from subsidizing another?AS: The proposers are required to submit separate cost proposals for each of the participating agencies thatreflect the services, community profile, distance from facilities, and other factors that influence cost of service.These proposals will be stand-alone offers that any one agency could act on regardless of the actions of otheragencies.QG: How will the cost proposals reflect the economies of scale i f more than one agency contracts with thesame company?A6: In addition, th e proposers are asked to propose a discount fo r the award of multiple contracts. Thisdiscount (expressed as a percentage savings compared to the stand-alone pricing) would reasonably increase asthe number of agencies contracting with that proposer increases. Th is savings reflects the proposer's ability tospread overhead (e .g., management, administration, vehicle parking facilities, offices, etc.) to more customers.


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Fact Sheet on MRWMD Participating Agency RFP ProcessQ7 : How does the RFP process and/or new contract impact franchise or other fees paid to each of theparticipating agencies?A7: The RFP does not include any changes to the fees charged by each of the agencies currently. However,this process offers each agency the opportunity to consider their fee amounts and basis and make changes, ifthey would like. Such changes can be made any time up to the final negotiation of the franchise agreement. Thismay allow agencies to receive proposals on the basis of their current fees and delay decisions about changesuntil the cost of new services and impact on customer rates is known.QS: What is the District's role in the RFP process and how does it impact each agency?A8: As mentioned in Ql above, the District and each of the participating agencies worked together todevelop the RFP process. The District is facilitating the regional RFP process, contracting with a consultant whospecializes in these types of solid waste RFPs, and providing subject matter expertise to the participatingagencies. Each participating agency will continue to have their own separate franchise agreement and eachagency will make its own decision regarding the selection of a contractor, establishment of rates to customers,establishment or revision of agency fees, and will retain ultimate authority for the contract.

Q9 : What is the schedule for the RFP process and at what points will each agency's elected body be engagedin the process?A9 : The process and schedule are outlined in the table below with participating agency decision pointsbolded for emphasis.

ACTIVITY COMPLETION DATE*Board Reviews/Approves Draft RFP to Member Agencies March 15, 2013Member Agency Elected Bodies Consider/Comment on Draft RFP March -April 2013TAC Meeting to Receive Member Agency Input April17 , 2013Final Member Agency Input Received on Draft RFP May3, 2013District Board Approves RFP for Issuance May 17, 2013District releases RFP for Collection and Processing Services May 31, 2013Deadline for submittal of written questions before the pre-proposal meeting June 14, 2013Mandatory pre-proposa l meeting June 20, 2013Deadline to submit additional written questions June 28, 2013District will issue: response to written questions, summary of responses provided July 12, 2013at the pre-proposal meeting, and RFP addendum if necessary.Proposers su bmit proposa ls August 16, 2013Evalu ation Panel conducts interviews with one or more proposers October 20, 2013Evaluation Panel recommends contractor(s) November 8, 2013Evaluation Panel recommendation presented to Participating Agencies November- December 2013Participating Agencies comple te negotiations with contractor(s) December 18, 2013Participating Agency elected bodies approve franchise agreements January- March 2014Con tractor commences se rvices Ap ril - August 2015


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Fact Sheet on MRWMD Participating Agency RFP Process

QlO: Must each agency execute a contract with the proposer recommended through this process?A10: No. The ultimate decision regarding the selection of a contractor will be left to each agency; each agencyis free to select from among all proposals received which may be a different service provider from theirneighboring agencies. The RFP is clear with the proposers that the issuance of the RFP does not bind any of theparticipating agencies to a selection and that each agency may act in their own best interest at any time duringthe process.


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DRAFTFor Participating Agency ReviewMarch 20, 2013


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MONTEREY PENINSULA COMMUNITIESREQUEST FOR PROPOSALS FOR

SOLID WASTE, RECYCLING, AND ORGANICS COLLECTION SERVICESProposal Information: The Monterey Regional Waste Management District (District), on behalf of thecities of Carmel-by-the-Sea, Del Rey Oaks, Marina, Pacific Grove, Sand City, Seaside, and the PebbleBeach Community Services District (hereinafter "Participating Agencies"), is requesting proposals for thecollection of solid waste, recyclable materials, and organic materials. Copiesof this Request for Proposal(RFP) may be obtained upon request from the District's consultant:

Attn: Rob HiltonHF&H Consultants, LLC201 North Civic Drive, Suite 230Walnut Creek, CA 94596(925) 977-6959(925) 977-6955 [email protected]

All questions regarding the RFP should be directed to the District's consultant. In order to preserve theintegrity of the RFP process and to ensure that all proposers are provided consistent information,interested parties are asked to refrain from contacting staff or elected officials representing the Districtor Participating Agencies. The District reserves the right to reject proposals from proposers who contactParticipating Agency staff or elected officials after the date this RFP is issued.Pre-Proposal Meeting: All proposers should attend a mandatory pre-proposal meeting on June 20, 2013at 10:00 a.m. at the District's offices. Interested parties should R.S.V.P. by phone or e-mail to theDistrict's consultant, by June 7, 2013, if attending the pre-proposal meeting. The District reserves theright to reject proposals received from proposers that do not attend the pre-proposal meeting.Proposal Submittal: All proposals must be received by 3:00 p.m. on August 16, 2013. Proposalsreceived after this time and date may be rejected. Postmarks will not be accepted as proof of receipt.Proposers shall mail or hand-deliver proposal packages to the District's consultant at the address above.Register to Receive Future Correspondence and Announcements: If you are interested in receivingfuture correspondence or announcements related to the RFP process, please contact the District'sconsultant (see phone number and e-mail address above) and request that your name be placed on thelist of interested parties. If you do not register as an interested party by June 25, 2013, any futurecorrespondence or announcements related to this RFP may not be transmitted to you.


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Monterey Regional Waste Management District Table of ContentsRFP for Collection Services Draft for Participating Agency Review

TABLE OF CONTENTSSECT\ON 1: \NTRODUCTION ....................................................................................... 1

1.1 RFP Process Goals and Objectives ................................................................ 11.2 RFP Overview ................................................................................................. 21.3 Organization of RFP ........................................................................................ 31.4 RFP Schedule ................................................................................................. 31.5 Community Background Information ............................................................... 5SECTION 2: BACKGROUND ........................................................................................ 6

2.1 Description of Current Services....................................................................... 62.2 Demographic and Commercial Information .. .............................................. ..... 92.3 Current Tonnage and Account Data ................................................................ 92.4 Historical Operating Information ....................................... ............................. 102.5 Current Diversion Information ....................................................................... 102.6 Billing Process ............................................................................................... 112.7 Current Rates and Rate Revenues ............................................................... 122.8 Participating Agency Fees............................................................................. 12SECTION 3: REQUESTED SERVICES & POLICIES ................................................. 13

3.1 Scope of Services for Base Proposals .......................................................... 143.2 Scope of Services for Alternative Proposals ................................................. 173.3 Collection Equipment .................................................................................... 203.4 Local Office and Corporation Yard ................................................................ 213.5 Subcontractors .............................................................................................. 223.6 Municipal Code Revisions ............................................................................. 223.7 Reimbursement of Procurement Costs ............Error! Bookmark not defined.SECTION 4: RFP CONDITIONS & SUBMITTAL PROCESS ...................................... 234.1 Rights Reserved by the District and Participating Agency ............................ 234.2 General RFP Agreements ............................................................................. 244.3 Proposal Submittal Process .......................................................................... 25

SECTION 5: SUBMITTAL REQUIREMENTS .............................................................. 285.1 Proposal Outline............................................................................................ 285.2 Cover Letter .................................................................................................. 295.3 Executive Summary ...................................................................................... 295.4 Company Description .................................................................................... 295.5 Technical Proposal for Base Proposal .......................................................... 325.6 Technical Proposal for Alternative Services .................................................. 375.7 Technical Proposal for Innovative and/or Cost-Saving Services ................... 385.8 Environmental Considerations ...................................................................... 395.9 Acceptance of RFP and Franchise Agreement ............................................. 405.10 Cost Proposal. ............................................................................................... 415.11 Other Proposal Forms ........ ........................................................................... 455.12 Additional Information (Optional) ................................................................... 45

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Monterey Regional Waste Management District Table of ContentsRFP for Collection Services Draft for Participating Agency ReviewSECTION 6: PROPOSAL EVALUATION PROCESS ..................................... ............ 46

6.1 Proposal Evaluation Process ......... ., ............................................................. 466.2 Evaluation Criteria .... ..................................................................................... 46

ATTACHMENTSA. Model Franchise Agreement fo r Collection ServicesB. Current Participating Agency Franchise Agreements

1. Carmel2. Del Rey Oaks3. Marina4. Pacific Grove5. Pebble Beach6. Sand City7. Seaside

c. Agency Service Prof iles1. Carmel2. Del Rey Oaks3. Marina4. Pacific Grove5. Pebble Beach6. Sand City7. Seaside

D. Current Participating Agency Rates Sheets1. Carmel2. Del Rey Oaks3. Marina4. Pacific Grove5. Pebble Beach6. Sand City7. Seaside

E. Cost Proposal Forms1. Base Cost Proposal2. Alternate Cost Proposal3. Discount fo r Award of Multiple Franchises

F. Secretary's CertificateG. Anti-Collusion AffidavitH. District Facility Tonnage Data (Excel spreadsheet, provided upon request)I. AMBAG 2012 Preliminary Regional Growth Forecast

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Monterey Regional Waste Management District Table of ContentsRFP for Collection Services Draft for Participating Agency Review

LIST OF TABLESTable 1: Commencement Date of Participating Agency Franchise Agreements .................................. ........ 2Table 2: RFP Schedule ..................................................................... .............................................................. 4Table 3: Readily Available Background Informati on ............................................. ... ..................................... 5Table 4: Current Single-Family Collection Services ............................................ ...................................... ..... 7Table 5: Current Multi-Family Collection Services ................ ................. .................. ................. .................. .. 8Table 6: Current Commercial Collection Services .............................................................. ........................... 8Table 7: Demographic Data .......................................................... .................................... .............................9Table 8: Tonnage Information ............................................................... ..................................................... 10Table 9: WM Reported Routes by Agency and line of Service (October 2012) ......................................... 10Table 10: Historical Diversion Rate Percentages ................................................ ............. ........................... 11Table 11: Billing Arrangements ....... .. .......................... ................................................................................ 11Table 12: Annual Revenue .. ............. ................................... ........................................................................ 12Table 13: Agency Fees ............................................................... ..................................... ............................. 12Table 14: Proposal Outline ........................................................................................... ......................... ..... 28

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Monterey Regional Waste Management District Section 1: IntroductionRFP for Collection Services Draft for Participating Agency Review

SECTION 1: INTRODUCTIONThe Participating Agencies are seeking proposals for the collection of solid waste, recyclable materials,and organic materials through th is Request for Proposals {RFP) process coordinated by the District.The District was formed in 1951 and its boundaries include the following Member Agencies: Carmel-bythe-Sea; Del Rey Oaks; Marina; Monterey; Pacific Grove; Sand City; Seaside; and the unincorporatedareas of Big Sur; Carmel Highlands; Carmel Valley; Castroville; Corral De Tierra; Laguna Seca; MossLanding; Pebble Beach; San Benancio; and, Toro Park. NOTE: The City of Monterey and unincorporatedportions of the County of Monterey are not participating in this process.Each Participating Agency will have a separate franchise agreement with the selected serviceprovider{s). The current agreements between each Participating Agency and Waste Management{"WM", the current franchisee) will remain in effect until each reaches the expiration date. The selectedservice provider{s) will be expected to phase in service to each community upon the expiration of theircurrent agreements {Table 1 lists the commencement date for each Participating Agency). The term ofeach new franchise agreement will be for a period of 10 years. The agreement may be extended for aperiod of no less than 1 year and no more than 5 years for a maximum term of 15 years.

1.1 RFP Process Goals and ObjectivesThis RFP process is intended to solicit proposals from companies that have demonstrated experiencein itiating and providing solid waste, recyclable materials, and organic materials collection servicescomparable to those described in this RFP, including Attachments. The District and ParticipatingAgencies seek proposers who place a high priority on customer service and the diversion of waste fromlandfill disposal, and have demonstrated significant innovation and results through their programdevelopment, implementation, public education, and operations. The Participating Agencies' goals forfuture collection services include: Maximizing the quality and consistency of services provided to customers; Providing service at rates comparable to or less than t hose currently paid by residents and

businesses; Meeting the State's 75% recycling goal, locally, by 2020 and supporting the State's goa l of resource

conservation, which prioritizes management of the waste stream using the following hierarchy:waste reduction, reuse, recycling, composting, transformation, and landfilling; Providing state-of-the-industry services to residents and businesses that maximize the value of

recovered resources and opportunities for customers to participate in recycling; and, Receive a franchise fee from contractor(s).

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1.2 RFP OverviewThis RFP process is intended to solicit proposals for the future programs and services and select a futurecontractor(s) for the collection services provided to the Participating Agencies. The contractor selectionprocess will result in new contracts in each of the Participating Agencies for solid waste, recyclables, andorganics collection services. The procurement process involves soliciting and evaluating proposals,selecting the future contractor(s), executing a contract with the selected contractor(s), and establishingan implementation process leading to commencement of services. The new franchise agreements ineach Participating Agency will have different commencement dates, based on the expiration of thecurrent franchise agreements in each Participating Agency. Table 1 below shows the commencementdates for each new franchise agreement, in chronological order.

Table 1: Commencement Date of Participating Agency Franchise Agreements

4/1/20155/1/20155/1/20155/1/20157/1/20157/1/20158/1/2015

Through this RFP, each Participating Agency is requesting that proposers submit a "Base Proposal" thatcovers collection services and programs that are very similar to the current scope of services. Inaddition, the RFP requests severai"Aiternative Proposals" that address new programs for residents andbusinesses. The technical and cost proposals for the Alternative Proposals will be evaluated and used bythe Participating Agencies to determine if one or more ofthe alternative services will be included in thefinal scope of the agreement. Proposers are required to submit a response for both the Base Proposaland all Alternative Proposals. Lastly, proposers are invited to present proposal(s) for other innovative orcost-savings approaches that may not be specifically identif ied here. Requested services are summarizedin Section 3 of this RFP and described in detail in the Model Franchise Agreement (Attachment A).The Participating Agencies, separately, all currently franchise these services to one company. The resultsof this RFP process may include awarding contracts to one company for all of the Participating Agencies'franchise agreements or awarding contracts to different companies for different agencies. In addition,each Participating Agency has an interest in ensuring that the rates charged in their community reflecttheir specific cost of service and are not subsidizing (or being subsidized by) other communities. As such,the Part_icipating Agencies request that each proposer provide separate proposal cost forms, by agency,along wrth a p r o p ~ s e d cost _savings resulting from the award of multiple agreements to one company.The proposal submrttal requrrements are described in more detai l in Section 4.

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1.3 Organization of RFPThis Request for Proposals (RFP) is organized into the fol lowing sections:Section 1 summarizes the Participating Agencies' goals and objectives, describes the ParticipatingAgencies' rights concerning the procurement process, and presents the procurement schedule.Section 2 provides a description of the Participating Agencies' and a summary of the current servicesprovided to each.Section 3 presents the scope of requested collect ion, processing, and disposal services.Section 4 describes the proposal submittal process.Section 5 outlines the proposal submittal requirements.Section 6 describes the type of criteria that may be used to evaluate proposals.The attachments include the Model Franchise Agreement, current Participating Agency franchiseagreements, current Participating Agency service profiles, current Participating Agency rate sheets, costproposal forms, secretary's certificate, and anti-collusion affidavit, Participating Agency customeraccount data, and the discount for multiple service areas.

1.4 RFP ScheduleThe key activities and completion dates for the RFP process are provided in Table 2. The RFP process isdescribed in detail in Section 4. All questions regarding the RFP must be submitted in accordance withguidelines specified in Section 4.3.



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Monterey Reg ional Waste Management District Section 1: IntroductionRFP for Collection Services Draft: fo r Participating Agency Review

Table 2: RFP ScheduleACTIVITY COMPLETION DATE*

District releases RFP for Collection and Processing Services May 31,2013R.S.V.P deadline for mandatory pre-proposal meeting June 7, 2013, 5:00 p.m.Deadline for submittal of written questions before the pre-proposal June 14, 2013, 4:00p.m.meetingMandatory pre-proposal meeting June 20, 2013, 10:00 a.m.Deadline for registering to receive future correspondence and June 25, 2013announcements (note company registering must have had arepresentative at the mandatory pre-proposal meeting)Deadline to submit additional written questions June 28, 2013, 5:00p.m.District will issue: response to written questions, summary of July 12, 2013responses provided at the pre-proposal meeting, and RFPaddendum if necessary.Proposers submit proposals August 16, 2013, 3:00p.m.Evaluation Panel conducts interviews with one or more proposers October 20, 2013Evaluation Panel recommends contractor(s) November 8, 2013Participating Agencies complete negotiations with contractor(s) December 18, 2013Participating Agency elected bodies approve franchise agreements January- March 2014Contractor commences services:

Sand City April 1, 2015Seaside May 1, 2015Del Rey Oaks May 1, 2015Marina May 1, 2015Carmel July 1, 2015Pebble Beach July 1, 2015Pacific Grove August 1, 2015. .*Note that the D1stnct or Part1c1patmg Agency(1es) may mod1fy th1s schedule as needed .



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Monterey Regional Waste Management District Section 1: IntroductionDraft for Participating Agency ReviewRFP for Collection Services

1.5 Community Background InformationBelow is a list of readily-available websites that provide background information on the ParticipatingAgencies and the District. More detailed background information documenting the performance of thecu rrent services is provided in Section 2 and in the attachments to this RFP.

Table 3: Readily Available Background InformationR e ~ o u r c e Location -City websites www.ci.carmel .ca.us

www delreyoaks.orgwww .ci.marina .ca.uswww.ci.Qg.ca.uswww .p_bcsd.orgwww .sandcity.orgwww.ci.seaside.ca.us

Waste Management Websites http_:Llwww.wm comLJocationLcaliforn aLmonterey-countyLunincorp_oratedLindex.jsQhttp_:Llwww.wm.comLiocationLcaliforniaLmonterey-coun'f:Y..Ldel-rey-oaksLindex. jsp_httg_:Llwww.wm.comLiocationLcaliforniaLmonterey-coun'f:Y..LmarinaLindex.jsQhttQ Llwww.wm.comLiocationLcaliforn aLmonterey-countv Qacific-groveLindex.jsp_www.wm.comLiocationLcaliforniaLmonterey-coun!Y_LQebble-beachLindex.jsQhttQ:Llwww.wm.comLiocationLcaliforniaLmonterey-coun!Y_Lsand-seasideLindex.jsp_

Monterey Regional Waste www.mrwmd.orgManagement District (District)



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Monterey Regional Waste Management District Section 2: BackgroundRFP for Collection Services Draft for Participating Agency Review

SECTION 2: BACKGROUNDThe information presented in this section was obtained from the Participating Agencies and WM and ispresented for informational purposes only. By the submission of a proposal, the proposer agrees toindemnify and hold the District and each Participating Agency harmless from any claims of damagesincurred by the proposer for its reliance on this data. Each proposer should take whatever steps itbelieves are necessary to reasonably determine the actual service requirements of each ParticipatingAgency and understand service conditions in each Participating Agency when preparing its proposal.

2.1 Description of Current ServicesWM collects solid waste, recyclable materials, and organic materials from residents at ParticipatingAgency-approved rates. WM provides collection of solid waste and recyclable materials fromcommercial customers. WM also provides collection from certain Participating Agency facilities andevents at no charge to the Participating Agency. WM delivers all solid waste and all organic materials tothe Distr ict-owned and operated Monterey Peninsula Landfill and Compost Facility. Commercial foodwaste collection service is currently a pilot program and provided to select large and institutional foodwaste generators (e.g., CSU Monterey Bay, Costco, etc.). Recyclable materials are currently processed atWM's Castroville Materials Recovery Facility.Tables 4 through 6 summarize the Participating Agencies' current collection services provided to singlefamily, multi-family, and commercial customers. A more detailed description of the services provided toeach Participating Agency is described in their current franchise agreement (Attachment B) and agencyservice profile (Attachment C). Other services include: collection from Agency facilities, public litter andrecycling containers, and special events; public education; billing; customer service; and abandonedsolid waste collection. Agency service profiles (Attachment C) also describe the collection services thatare provided at Participating Agency facilities and special events.For the purposes of this RFP, single-family means "each unit used for, or designated as, a single familypremises, including each unit of a duplex, triplex, townhouse or condominium that receives individualsolid waste, recyclable materials, and/or organic materials collection services". Multi-family means "anyresidential complex, other than a single-family premise, used for residential purposes, which normallyhas centralized solid waste and recyclable materials collection service for all residential units in thebuilding and may be billed as one address."



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Table 4: Current Single-Family Collection Services

Solid Waste CollectionAdditional Solid Waste Containers- - - - - - - - - - - - ~ - - - - - - - - - ~ - -Recyclable M a t e r i a l ~ Collect{on ~ ~ ........... ~ - - ~ ~ ~ ~ ~ - ~ - - ~

A d d i t i o n a l Recycling Containers ~ ILGreen Waste Collection - - - - - - - - - ~ - - - - ~ - - - ~ - $ ~ ~ ~ $ j1Additional Organics Containers ~ $ ~~ ~ e n Waste Overages . .~ Scrap Collection = .~ u : ~ : ~ : - - , r : _ - - : ~ : ~ c t i o n . ?=3=---T--; ~ ~ ~ '

Bulky Item Collection Events per Customer per Year__ - - 1__ 2_ _ _ ~ ___ _ _____~ ~ ~ ~ ~ ~ ~ ; : ~ : h ~ ~ ~ ~ = ; ~ ~ ~ ~ ~ % : ; ; t i o n / -__ ______$__71$ _ 1- W a s t e Events

;::-:; : ; ~ ~ ; ~ ~ ~ ~ ~ e c t i o n - - ~ - - - - - - - _ : _ - - - - ~ - - - JNote 1: All programs included in the customers' base rates for service (i.e., programs offered at noadditional charge to customers) are noted with a check mark ( Programs offered for an additionalcharge are noted with a dollar sign($).Note 2: Pebble Beach offers one-direction back-/side-yard collection service at no additional charge toResidentia l customers and charges an additional fee to customers for two-direction back-/side-yardcollection service.



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Table 5: Current Multi-Family Collection Services~ - - - - - - - - - - - - - - - - - - - - - - - - ~ - - - - - - - - - - - - ~

Solid Waste CollectionAdditional Solid Waste Contain.ers

clable Materials Collection ../ ../ ../I

../ ../ ../ ../ I$ 'l

Additional Recycling ContainersI niversai96-Gal Cart ~ - - ~ - - - - - - - - - - - - - - - - - - - - - - - - - - - -../ ../ $ ../ ../ ../

~Green Waste CollectionAdditional Org_anics ContainersFood Scraps Collection

I Curbside Motor Oil & Filter Collection -,Curbside Holiday Tree Collection lBulky Item Collection Events per Customer per Year :Iurbside Household Battery CollectionCurbside E-Waste Collection IE-Woste Events ---Annual HHW Community Collection

l_HHW [)oor _o_ f?._q[?r o l l e _ ~ _ ! ! _. -. ; . . . ; .-...---- - - ~ . . . . . . . , . . . . - - - --'-'W- ~ - - - - - - - - - ~ ~ ~ - ~ - -. "Table 6: Current Commercial Collection Services

Solid Waste Collection ../Recyclable Materia ls Collection ../ ../ ../ ../ ../ ../--Green Waste CollectionFood Scrap Collection $ $ $ $ $ $ $Bulky Item Collection Events pe r Customer per Year 1



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2.2 Demographic and Commercial InformationTable 7 presents general residential demographic information to provide proposers with backgroundinformation on each of the Participating Agencies.

1The Association of o n t e ~ e y Bay Area Governments{AMBAG) has provided the District with its Preliminary 2012 Regional Growth Forecast {included as

Attachment 1). The forecast is for planning purposes only and adjustments may be made as more databecomes available.

Table 7: Demographic Data/', / ' HPe,rsons ,,, ,;''

Population House- Single 2-4 5+ Mobile per Commercialholds Unit Units Units Homes House- Conta iners*hold

Carmel 3,763 3,417 2,806 376 235 0 1.1 494Del ReyOaks 1,642 741 586 44 111 0 2.2 34Marina 19,996 7,201 3,295 1,746 1,908 252 2.7 629Pacific Grove 15,219 8,178 4,736 1,609 1,682 151 1.8 985Pebble Beach ~ 4 , 5 0 0 2,795 2,705 0 90 0 1.6 77Sand City 337 145 71 41 30 3 2.3 137Seaside 33,160 10,899 6,806 2,142 1,368 583 3.0 822Total 74,117 30,581 18,300 5,958 5,334 989 2.4 3,178*Per WM, Number of Commercial Solid Waste Containers in service, not accounts2.3 Current Tonnage and Account DataTable 8 summarizes tonnage information provided by the District and WM for all of the ParticipatingAgencies combined. More detailed information is also provided for each Participating Agency in theiragency service profile {Attachment C) and in the District Facility Tonnage Data {Attachment H) providedfor each agency, by vehicle type and material type fo r 2010 through 2012.As stated in the beginning of this Section, the District believes this information to be reasonable, butdoes not warrant or accept responsibility for its accuracy. It is the responsibility of each proposer toundertake, at its sole cost, any verification of this information necessary for it to submit a response tothis RFP.

1 Residential housing data was obtained from the California Department of Finance, Demographic Research Unit,Table 2: E-5 City/County Population and Housing Estimates, 1/1/2012.



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Monterey Reg ional Waste Management District Section 2: BackgroundRFP for Collection Services Draft for Participating Agency Review

Table 8: Tonnage Information

8,069.4414,862.08110,919.8

2.4 Historical Operating Information

85,256.159,572.8515,586.21

110,415.20

81,920.20Not Available15,741.60

WM provided route data for its operations in the Participating Agencies. WM reported the number ofregular routes, and that information is presented in Table 9 below. The route estimate is approximateas some routes operate in one or more other jurisdictions and it does not appear that adjustments havebeen made to the reported data to reflect partial or shared routes. Note that accuracy of thisinformation has not been verified by the District or Participating Agencies.

Source: Waste Management2.5 Current Diversion InformationTable 10 shows the Participating Agencies' AB 939/SB 1016 diversion rates from 2005 through 2011.Diversion for Pebble Beach is not reported to CalRecycle, but is periodically calculated by the District.



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Table 10: Historical Diversion Rate Percentages2005 2006 2007 2008 2009 2010 2011

Carmel 56% 62% 63.5% 66.7% 74.8% 73.0% 76.4%Del ReyOaks 64% 71% 59.6% 64.0% 67.5% 66.7% 64.9%Marina 47% 55% 58.0% 66.7% 67.4% 71.0% 72.5%Pacific Grove 61% 63% 63.1% 64.8% 69.7% 65.6% 70.5%Pebble Beach 58% N/A 62.0% 65.0% 68.0% 69.0% 73.0%Sand City 58% 53% 58.8% 64.7% 72.9% 78.2% 77.7%Seaside 57% 57% 57.7% 61.5% 62.5% 62.5% 62.5%Source: AB 939 reports from Agency

2.6 Billing ProcessBilling arrangements fo r the provision of service to residential and commercial customers vary bylocation. Table 11 shows the party responsible for billing in each Agency.Pebble Beach has a very high vacancy rate of 40% due to its unique demographics. Residential collectionservices are mandatory throughout Pebble Beach. The existing hauler is paid for 100% of serviceprovided. All customers are billed on the property tax roll with the exception of the one 90 unitcondominium complex and the current hauler bills the HOA. Pebble Beach pays the company the fullamount on a quarterly basis. Any additional services received by customers (i.e., larger or extracontainers) are billed by the garbage company directly to the receiving customers.

March 8, 2013

Table 11: Billing Arrangements

Contractor bills all customersContractor bills all customersContractor bills all customersContractor bills all customersProperty Tax Billing for lowestresidential service;Contractor bills multi-family,commercial and extra residentialservice.Contractor bills all customersContractor bills all customers

Page 11 HF&H Consultants, LLC


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2.7 Current Rates and Rate RevenuesThe rates for collection services vary among the Participating Agencies. The rates that are currentlyeffective in each Participating Agency are shown in Attachment D.To provide a perspective on the potential value of the franchises, the current franchise hauler reportsannual revenue of approximately $17.9M for all seven agencies. Table 12 below lists the estimated raterevenue resulting from each franchise. Please note that the date range represented by these valuesvaries slightly from agency to agency, but generally represent either calendar year 2011 or fiscal year2011/12 revenues.

Table 12: Annual Revenue

Carmel - _Del Rey Oaks'MarinaPacific Grove

2.8 Participating Agency Fees

$423,200'$Dw9;44G$2,500,000. s i

.$;, - _ . ~ ~ : ; : _ . _- ,_-;__ . _ $4,881,525E ; " ; j r ~ ~ 3 ~ E ~

Each of the Participating Agencies collect certain fees through their solid waste franchise agreement. Thecurrent fees, for each Participating Agency, are listed in Table 13 below. Percentages listed are thepercent of the contractor's gross receipts paid to the agency. Simultaneous with this RFP process, eachParticipating Agency may consider adjustments to thei r franchise or other fees and may choose to adoptnew fees. Each Participating Agency reserves the right to adjust these fees after proposals are receivedand prior to establishing rates.

Table 13: Agency Fees

10% Commercial



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Monterey Regional Waste Management District Section 3: Requested Services & PoliciesRFP for Collection Services Draft for Participating Agency Review

SECTION 3: REQUESTED SERVICES & POLICIESThis section provides a description of the services solicited through this RFP. The services are divided byservice sector (i.e., single-family, multi-family, commercial, and roll-off). In addition, this sectiondiscusses the RFP policies or preferences related to: diversion; offering of employment; collectionvehicles; containers; alternative fuel vehicles; facilities; and subcontractors.The Participating Agencies are requesting proposals to provide customers with solid waste, recyclablematerials, and organic materials collection service. As mentioned in Section 1.2, the first franchiseagreement will commence on April 1, 2015 and the last on August 1, 2015, each lasting a period of tenyears, ending between March 31, 2025 and July 31, 2025. Table 1 lists the commencement dates foreach of the future franchise agreements. Each franchise may be extended, at the sole discretion of theParticipating Agency, on one or more occasions for a maximum term of 15 years, as described in theModel Franchise Agreement.The Participating Agencies are requesting that proposers submit a "Base Proposal" as well as an"Alternative Proposal" documenting the incremental cost of certain new programs which are outlined inSection 3.2. The proposals for the Alternative Proposals will be evaluated and used by each ParticipatingAgency to determine if one or more of the alternative services will be included in the final scope of thefranchise agreement. The scope of services for the Base Proposal and Alternative Proposals aresummarized in Sections 3.1 and 3.2, respectively. Proposers are required to submit a response for boththe Base Proposal and Alternative Proposals for all Participating Agencies. Lastly, proposers are invitedto present proposal(s) for other innovative or cost-savings approaches, at their discretion.The model franchise agreement presents all of the contract terms and conditions including a completedescription of the services requested. It also describes contractor's compensation and rate-settingmethods, dispute resolution, indemnification, insurance, performance assurances, defaults and remedyprovisions, termination rights, performance standards and consequences for non-compliance, reportingobligations, and other provisions. If there are differences between the summary of services described inthis RFP and the franchise agreement, the terms and conditions in the franchise agreement prevail. Notethat the Model Franchise Agreement (Attachment A) represents a "model" that each agency will use tocustomize the programs, service requirements, and other elements of the franchise to their local needs.Using this model, each Participating Agency will negotiate a final franchise agreement with theirselected contractor that documents the choices made by that Agency .The contractor shall have the exclusive right to collect solid waste, recyclable materials, and organicmaterials, with the exception of those materials described in Section 1.2 of the Model FranchiseAgreement. These exclusive rights are consistent with current practice and local ordinances.The Participating Agencies welcome proposals that include the use of the proposer's recyclablematerials processing facility. In addition, the District is willing to arrange for the use of its facilities forthe processing, if proposers do not have their own facility, and/or transfer, if proposer's facility is not inthe service area, of recyclables. Under the terms of the franchise agreement, the contractor will be



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Monterey Regional Waste Management District Section 3: Requested Services & PoliciesRFP for Collection Services Draft for Participating Agency Reviewrequired to deliver all collected materials (excepting recyclable materials, if processed by the proposer)to the District's Facilities (including its Compost Facility, Last Chance Mercantile, Anaerobic Digester,Landfill, and if applicable MRF).

3.1 Scope of Services for Base ProposalsBase Proposals - GeneralThe scope of services for the "Base Proposal" submitted by each proposer shall be fo r the servicescurrently received by each Participating Agency. These services are summarized in Section 2.1 anddescribed in more detail in each Participating Agency's current franchise agreement (Attachment B) andagency service profile (Attachment C). This approach will allow each Participating Agency to understandand compare proposed costs relative to the current system, separate from each Participating Agency'sdecision to implement changes to the system (as described in Section 3.2 below). Furthermore, whenrates are developed for each Participating Agency, they shall be in a structure that is identical to the ratestructure currently in place, in order to ensure that any change in rates is applied to all customers in thesame percentage (i.e., if residential 35-gallon customers are experiencing a 3.4% rate reduction, acommercial 6 cubic yard customer with three days of service per week should also experience a 3.4%rate reduction).

Base Proposals - Single-Family Residential ServicesSolid Waste: The base proposal shall include weekly residential solid waste collection, in contractorprovided containers, for all Participating Agencies. Specific service levels available in each agency aredescribed in the agency service profiles (Attachment C).Recyclable Materials: The base proposal shall include weekly residential single-stream recyclablematerials collection, in contractor-provided containers, for all Participating Agencies. The defaultrecycling container size is 64-gallons and contractor shall make smaller recycling containers available onan as-needed basis for customers who have space constraints (e.g., townhomes) or are physically unableto move a larger container (e.g., senior and disabled). Single-family residential customers in Sand Citycan receive an additional recycling container, upon request, at no additional charge .Green Waste: The base proposal shall include weekly residential green waste collection, in contractorprovided containers, for all Participating Agencies. The green waste collection program in Marina andSeaside are voluntary, subscription-based programs. The default green waste container size is 96-gallonsand contractor shall make smaller green waste containers available on an as-needed basis for customerswho have space constraints (e.g., townhomes) or are physically unable to move a larger container (e.g.,senior and disabled). Single-family residential customers in Pacific Grove can receive an additional greenwaste container, upon request, at no additional charge. Single-family residential customers in Sand Cityreceive an additional green waste container, upon request, for an additional charge.



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Monterey Regional Waste Management District Section 3: Requested Services & PoliciesRFP for Collection Services Draft for Participating Agency ReviewSide-yard/Back-yard Service: The base proposal shall provide single family residential customers withside- or back-yard service for solid waste, recyclable materials, and green waste at no additional chargeto the customer in Carmel. In Pebble Beach, the base proposal shall provide single family residentialcustomers with one-direction side-/back-yard service for solid waste at no charge to the customer and arate shall be established for two-direction side-/back-yard service. Side-/back-yard service shall beprovided for an additional charge in Pacific Grove.Holiday Tree Collection: The base proposal shall include single-family residential curbside holiday treecollection during the first two weeks of each year for all Participating Agencies. Customers shall beallowed to place whole, unflocked, and undecorated trees at the curb and may not be required to placethe tree in their green waste cart.Used Motor Oil and Filter Collection: The base proposal shall include single-family residential curbsideused motor oil and fil ter collection, using contractor-provided oil jugs and fil ter bags, for customers in allseven Participating Agencies.On-Call Bulky Item Reuse Collection Events: The base proposal shall include on-call curbside singlefamily residential bulky-item reuse collection, consistent with the program requirements described inthe Model Franchise Agreement (Attachment A). For the purposes of the base proposal, the number ofcollection events available to each customer each year in each Participating Agency is listed in Table 4 inSection 2.1.

Base Proposals - Multi-Family Residential ServicesSolid Waste: The base proposal shall include at least once weekly but up to six times per week solidwaste collection, in contractor-provided containers, for all Participating Agencies. Service levels availableshall include 32-, 64- or, 96-, gallon carts or 1 to 8 cubic yard bins.Recyclable Mater ials: The base proposal shall include at least once weekly but up to six times per weekmulti-family single-stream recyclable materials collection, in contractor-provided containers, for allParticipating Agencies. Service levels available shall include 64- or, 96-, gallon carts or 1 to 8 cubic yardbins. The defaul t recycling container size is 64-gallons.Green Waste: The base proposal shall include at least once weekly but up to six times per week multifamily green waste collection, in contractor-provided carts only, for all Participating Agencies. There iscurrently no bin service for green waste provided to multi-family customers. The multi-family greenwaste collection program in Marina and Seaside are voluntary, subscription-based programs. Thedefault green waste container size is 96-gallons and contractor shall make 35- or 64-, gallon green wastecarts available on an as-needed basis for customers who have space constraints (e.g., townhomes) orare physically unable to move a larger container (e.g., senior and disabled).



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Monterey Regiona l Waste Management District Section 3: Requested Services & PoliciesRFP for Collection Services Draft for Participating Agency ReviewBase Proposals - Commercial ServicesSolid Waste: The base proposal shall include at least once weekly but up to six times per week solidwaste collection, in contractor-provided containers, for all Participating Agencies. Service levels availableshall include 64- or 96-, gallon carts or 1- to 6- cubic yard bins.Recyclable Materials: The base proposal shall include at least once weekly but up to six times per weekcommercial single-stream recyclable materials collection, in contractor-provided containers, for allParticipating Agencies and at no additional charge to the customer. Service levels available based oncustomer request shall include 64- or, 96-, gallon carts or 1- to 6- cubic yard bins.Organic Materia ls: The base proposal shall include weekly commercial organic materials collection, incontractor-provided containers, for all Participating Agencies. This service shall be an additional chargeto participating customers. Service levels available based on customer request shall include 64-galloncarts or 1- to 2- cubic yard bins.

Base Proposals - Roll-Off ServicesSolid Waste: The base proposal shall include at least once weekly but up to six times per week solidwaste collection, in contractor-provided containers, for all Participating Agencies. Service levels availableshall include 10-, 15-, 20-, 25 -, 30-, 35 -, and 40- cubic yard Drop Boxes or Compactors as requested bythe customer.Recyclable Materials: The base proposal shall include at least once monthly but up to six times perweek recyclable materials collection, in contractor-provided containers, for all Participating Agencies.Customers will have the option to choose source-separated collection of homogeneous material types(e.g., all cardboard, all metals, all wood waste, etc.) or mixed recycling with all recyclable materialscommingled. Service levels available shall include 10-, 15-, 20-, 25-, 30-, 35-, and 40- cubic yard DropBoxes or Compactors as requested by Customer.Organic Materials: The base proposal shall include once weekly but up to six times per week organicmaterials collection, in contractor-provided containers, for all Participating Agencies. Service levelsavailable shall include 10-, 15-, 20 -, 25 -, 30-, 35-, and 40- cubic yard Drop Boxes or Compactors asrequested by Customer.Source-Separated or Mixed C&D Materials: The base proposal shall include at least once monthly butup to six times per week construction and demolition (C&D) debris collection, in contractor-providedcontainers, for all Participating Agencies. Customers will have the option to choose source-separatedcollection of homogeneous material types (e.g., all metals, all inert materials, all wood waste, etc.) ormixed C&D debris with all materials commingled. Service levels available shall include 10-, 15-, 20-, 25-,30-, 35-, and 40- cubic yard Drop Boxes as requested by Customer.



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Monterey Regional Waste Management District Section 3: Requested Services & PoliciesRFP for Collection Services Draft for Participating Agency Review3.2 Scope of Services for Alternative ProposalsThe Participating Agencies wish to consider the addition of certain new programs to support communitygoals and the State's 75% recycling goal. Prior to committing to these new programs and their costs,each Participating Agency wishes to evaluate the potential benefits and costs of these services. For thisreason, the proposer is required to propose on each of the new services, documenting the incrementaladditional cost of each relative to the "Base Proposal", and present its approach to providing theservice. Each service is generally described below. Article 4 of the Model Franchise Agreement includesa detailed description of the services.Alternative Proposals - Recycling StrategyThe communities of the Monterey Peninsu la are regarded as environmental leaders. Through this RFPprocess and improvements to programs and recycling services available to the community, theParticipating Agencies wish to reaffirm their leadership in the area of sustainable recycling, organics, andwaste management through a partnership(s) with firms who have a similar ethic. The ParticipatingAgencies are supportive of the State's new 75% recycling goal and would like to see that goal achievedlocally.The recycling strategy established by the Participating Agencies in their collection system focuses onsource separation to maximize the educational, commodity, and energy value potential that exists ifcustomers are directly informed about and participating in the recycling system. As such, theParticipating Agencies are requesting programs and services that engage the customer in minimizingthe ir waste stream and separating their recyclables and organics.In addition and as a complement to the source-separation services provided through the collectionfranchises, the District is in the process of significantly upgrading its MRF to allow for processing of allcommercial and multi-family waste material delivered to the District's site. This strategy of processing allwaste material prior to disposal is known as "MRF First". The District has a fifteen year history ofapplying this "MRF First" strategy to the non-franchised, public loads that are delivered to the District'sLandfill. The District expects that it will be able to recover in excess of 50% of all commercial and multifamily solid waste collected and delivered by the selected contractor(s).This combined strategy seeks to maximize the value potential of the source separation system whileproviding a "safety net" for those customers who either cannot or will not fully participate in sourceseparation.

Required Alternative Proposal #1: Single-Family Universal Green Waste CollectionCurrently, the cities of Marina and Seaside do not include green waste collection in their standardresidential service. Instead, customers wishing to participate in this program must pay an additional$ X . X per month in Marina and $6.40 per month in Seaside. Proposers are asked to submit theiroperational and cost proposal documenting the incremental additional routing, labor, equipment, andexpenses to include this program in the standard residential service for these communities.



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Monterey Regional Waste Management District Section 3: Requested Services & PoliciesRFP for Collection Services Draft for Participating Agency ReviewNOTE: Operational and cost data should only appear in the proposal forms for Marina and Seaside. Thiscolumn should be left blank in the proposal forms for all other agencies.

Required Alternative Proposal #2: Single-Family Mixed Organics CollectionCurrently, single-family collection services include green waste, but not food scraps or food soiled paper.These organic materials constitute the largest remaining portion of the single-family residentia l disposalstream and programs targeting this material are critical to the achievement of the State's 75% recyclinggoal. To encourage diversion of residential food scraps and food soiled paper, the Participating Agencieswish to consider adding this material to the residential green waste program to create a mixedresidential organics collection program.The District is working with its compost operator to develop operational and marketing plans for thisblended green waste/food scraps compost product. At a minimum, the selected contractor(s) will beresponsible for ensuring that the organics delivered under th is program contain no more than 1%, byweight, of non-compostable materials (contaminants).The District currently charges $23.50 per ton for green waste and $38.00 per ton for food waste. For thepurposes of the pricing proposal, proposers should assume that the food waste tipping rate would becharged for mixed organics. In the event that a different tipping fee is required to be charged for thisservice, the District and Participating Agencies will work with the selected proposer to adjust the pricingproposal to "pass-through" any difference in the t ipping fee prior to establishing rates.Proposers are required to document their plans for operating this program, including their approach tomaximizing customer participation and diversion while mitigating contamination. The proposer shalldocument the incremental additional costs and operating requirements of this program in the proposalforms for each PartiCipating Agency.

Required Alternative Proposal #3: Commercial Organics CollectionThe District and Participating Agencies wish to consider expanding the food scrap collection pilotprogram within the Participating Agencies to allow for greater program participation. The contractorshall collect organics from each customer at least weekly and up to five days per week, as required bythe customer. The contractor shall offer commercial organics service in containers including: 64-galloncarts; 1- through 4-cubic yard bins; and, roll-off compactors. If proposers have alternative cart and/orbin sizes that optimize collection, they are welcome to propose them.The District currently charges $38.00 per ton for food waste. For the purposes of the pricing proposal,proposers should assume that this tipping rate would be valid for commercia l organics. In the event thata different tipping fee is required to be charged for this service, the District and Participating Agencieswill work with the selected proposer to adjust the pricing proposal to 11pass-through" any difference inthe tipping fee prior to establishing rates.



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Monterey Regional Waste Management District Section 3: Requested Services & PoliciesRFP for Collection Services Draft for Participating Agency ReviewThe District is in the process of establishing a pilot scale (approximately 4,000 tons per year) anaerobicdigestion facility that will be operational prior to the commencement of services. Based on the results ofthis pilot program, the District (in cooperation with its Member Agencies) will determine whetheranaerobic digestion is an appropriate technology for the community and whether a more significantinvestment in that technology is warranted. At that time, it is possible that the anaerobic digestionapproach may continue or that it may be cancelled and replaced with another technology for handlingorganic materials (including com posting).The Participating Agencies anticipate establishing separate rates for commercial organics collectionservice, if that program is selected. The District and Participating Agencies will work with the selectedcontractor(s) to establish a pricing structure for these services {based on the proposed costs) thatbalances the need to create customer incentives with the need to mitigate significant revenue risksassociated with customer migration from paid to subsidized services.Proposers are required to document their plans for operating this program, including specificallydescribing their approach, timelines, and performance targets (i.e., participating customer count andtonnage) for this program. Proposers are asked to document the incremental additional operatingrequirements and costs for this program in the proposal forms for each Participating Agency.

Required Alternative Proposal #4: Expanded Residential Bulky Item Reuse EventsEach of the Participating Agencies currently have different approaches to providing on-call clean-ups forbulky items or extra waste that customers may periodically generate (e.g., spring cleaning, leaf season,move-in/out, etc.). The Participating Agencies are interested in expanding this program to offerresidential (single- and multi-family) customers up to three on-call collection events per calendar year atno additional charge to the customer. The program requirements including acceptable and prohibiteditems, quantities, and other requirements are described in the Model Franchise Agreement {Exhibit B-1,#5 (single-family) and Exhibit B-2, #4 (multi-family)). The Participating Agencies wish to utilize theDistrict MRF and last Chance Mercantile as a key element of this program to maximize the diversion andre-use of materials collected from customers.Proposers are required to document the ir plans for operating this program, including their approach topreserving the quality of materials during the collection process to maximize reuse and recyclability. Theproposer shall document the incremental additional costs and operating requirements of this programin the proposal forms for each Participating Agency.

Required Alternative Proposal #5: Public Education & OutreachCurrently, public education and outreach activities surrounding solid waste, recycling, and organics areperformed by multiple parties. WM provides quarterly newsletters to customers, uses corrective actionnotices to educate customers about incorrect set-outs, provides on-site assistance upon request fromcustomers, attends certain community events to provide education, and performs other miscellaneouseducation and outreach activities. The District operates its award-winning "Small Planet" education



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Monterey Regional waste Management District Section 3: Requested Services & PoliciesRFP for Collection Services Draft for Participating Agency Reviewprogram, works with event operators to coordinate recycling at large events, provides occasionalrecycling technical assistance to businesses, and attends certain community events to disseminateinformation. Finally, each Participating Agency periodically supplements the education and outreachprovided by the current hauler and the District. This approach to the education system has not been aseffective as it should be in educating customers about the availability of programs and services and hasoccasionally lead to inconsistent messaging.Under the new franchises, the District and Participating Agencies wish to significantly improve thequality, consistency, frequency, and overall effectiveness of the public education and outreachsurrounding waste and recycling issues. The desired scope of public education and outreach activitiesare documented in Exhibit C of the Model Franchise Agreement. As part of this RFP process, theParticipating Agencies will be considering whether to include this more significant education andoutreach effort in the scope of the franchise agreement. Alternatively, the Participating Agencies mayassign primary education and outreach responsibility to the District and only require the franchisee toperform a supporting role (e.g., corrective action notices during collection, facilitating bill-inserts,receiving and processing work orders for service level changes, etc.)Proposers are required to document their plans for operating the public education and outreachprogram, consistent with the scope described in Exhibit C of the Model Franchise Agreement. Theproposer shall document the incremental additional costs and operating requirements of this programin the proposal forms for each Participating Agency.

3.3 Collection Equipment3.3.1 Collection VehiclesProposers shall plan on providing new collection vehicles on the commencement date of the franchiseagreement. If the proposer wishes to provide service with used collection vehicles, proposer shallsubmit alternative pricing proposal forms that document the cost of service. Any proposal that assumesused collection vehicles in the Base Proposal may be deemed non-responsive at the discretion of theDistrict and Participating Agencies.When making a decision about the collection fleet, the proposer should consider that the ParticipatingAgencies expressed an interest in a fleet of collection vehicles that supports their communitycommitment to reduce environmental impacts. At a minimum, collection vehicles shall meet State ofCalifornia Air Resources Control Board regulations for "Diesel Particulate Matter Control Measure forOn-Road Heavy-Duty Residential and Commercial Solid Waste Collection Vehicle Diesel Engines." Indeveloping a proposal and associated costs, proposers shall assume that collection vehicles will need tocomply with the proposed legislation not only at commencement but also throughout the term of thefranchise agreement. For example, the proposer will need to include costs associated with equippingthose vehicles with best available control technology to meet state and federal regulations.



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Monterey Regional Waste Management District Section 3: Requested Services & PoliciesRFP for Collection Services Draft for Participating Agency ReviewCollection vehicles shall be equipped with sign board holders or other hardware to allowinterchangeable public education signage of no less than thirty-six (36) by forty-eight (48) inches to bedisplayed on both sides of the vehicle.Proposers shall assume an average vehicle li fe of 10 or more years and plan to depreciate vehicles overa 10-year period for the purposes of determining depreciation and interest expenses in their costproposal. Proposer will need to identify vehicle replacement plans and costs over the term of thefranchise agreement (including possible extensions). At the end of the franchise agreement, thecontractor will retain ownership of the collection vehicles.In the event that a proposer wishes to use an alternative fuel technology, proposers are invited to selectthe type of fuel and number and type of vehicles they recommend running on the alternative fuel. If thealternative fuel technology results in higher costs than conventional diesel fuel, it is recommended thatthe proposer present thei r alternative fuel proposal as an "Alternative Proposal" per Section 3.2.

3.3.2 Collection ContainersProposers shall plan on providing new collection containers on the commencement date of the franchiseagreement. If the proposer wishes to provide service with used collection containers, proposer shallsubmit alternative pricing proposal forms that document the cost of service. Any proposal that assumesused collection containers in the Base Proposal may be deemed non-responsive at the discretion of theDistrict and Participating Agencies.In order to provide for consistency in educational messaging with programs in other parts of the Countyand state, the District and Participating Agencies wish to implement a consistent color-coding approachfor containers. All solid waste containers shall be coded with a consistent dark neutral color (black, grey,brown, or tan), all recycling containers shall be coded blue, and all organics containers shall be codedgreen. The contractor may meet the color coding requirements for carts by the use of different coloredlids on common colored cart bodies. The color coding requirement for bins shall be met by either:painting the whole body of the bin in the coded color; or, by painting the bin white and encircling thebin with a color coded stripe no less than 12 inches tall. All containers shall be hot-stamped (cart lids) orlabeled (bins, boxes, and compactors) with a list of acceptable and prohibited items for that servicetype. The specific color selections and labels shall be approved prior to ordering.

3.4 Local Office and Corporation YardEach Participating Agency requires that all proposers identify a site or potential sites within the Countyto be used for the local office, staging of equipment and personnel, and performing equipmentmaintenance.The District has identified a space of approximately XX acres within the landfill buffer zone that is ownedby the District and could be developed into a corporation yard. The District currently estimates that thecost to grade, pave, and fence the area is $ X X X , X X ~ and the construction will take D


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Monterey Regional Waste Management District Section 3: Requested Services & PoliciesRFP for Collection Services Draft for Participating Agency Reviewtime a decision is made to improve the site. The District is offering that space for lease for $XX,XXX permonth for a term of 120 months. If a proposer wishes to make use of this space, they will be required topay all costs of improvement beyond grading, paving, and fencing.

3.5 SubcontractorsThe future contractor may enter into agreements with subcontractors to provide services requested inthe RFP subject to the prior written consent of the Participating Agency. Subcontractor arrangementsare to be disclosed in the proposal. Agreements with the subcontractor(s) must meet the requirementsof the level and type of insurance specified in Section 9.2 of the Model Franchise Agreement.

3.6 Municipal Code RevisionsThe changes to the existing collection arrangements proposed by the Participating Agency may requirerevisions to Municipal Code(s) of some or all of the Participating Agencies. If any changes to theMunicipal Code are necessary, it is anticipated that they will be revised prior to the effective date of thefranchise agreement.



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Monterey Regional Waste Management District Section 4: RFP Conditions & Submittal ProcessRFP for Collection Services Draft for Participating Agency Review

SECTION 4: RFP CONDITIONS 8t SUBMITTAL PROCESS

4.1 Rights Reserved by the District and Participating AgencyThe District and each of the Participating Agencies individually reserve the right, in the sole discretion ofthat party, to pursue any or all of the following actions in regard to this RFP process: Issue addenda and amend the RFP and franchise agreement; Request additional information and/or clarification from proposers; Extend the deadline for submitting proposals; Allow for the timely correction of errors and waive minor deviations; Withdraw this RFP; Reject any or all proposals; Reject proposals tha t do not fully comply with the requirements detailed in this RFP, its

attachments, addenda, or clarifications; Reject incomplete proposals; proposals containing errors, inconsistencies, false, inaccurate or

misleading information; proposals not submitted with the proper quantity of copies; proposals notsubmitted with the proper deposit; proposals submitted after the deadline; and/or, proposals withother process or content errors or deficiencies;

Reject a proposal that is given the highest quantitative scoring in the evaluation process if it is not inthe best interest of the Participating Agency and its residents and businesses; Select the proposal(s) tha t might not offer the lowest cost, but in the judgment of the District and/or

Participating Agency, are nevertheless deemed to offer the best value for the public and theParticipating Agency;

Solicit subsequent requests for best and final offers; Award the franchise agreement to proposer(s) based on a combination of its qualitative and

quantitative attributes; Award the franchise agreement to proposer(s) wi thout further discussion or negotiation; Re-advertise for proposals or issue subsequent requests for proposals for the same, similar, orrelated services; Negotiate changes in the services proposed and/or described in the RFP or to incorporate programs

proposed by others; and negotiate changes to the franchise agreement; Negotiate with selected contractor(s) for a later commencement date;



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Amend the Model Franchise Agreement; Amend General Plan policies; Amend Municipal Code, Planning and Zoning Code, and Design Standards and Guidelines; and, Take other actions the District and/or Participating Agency deems is in the best interest of its

residents and businesses.

4.2 General RFP AgreementsThis RFP shall not be construed by any party as an agreement of any kind between the District,Participating Agencies, contractor(s), and/or other parties.This RFP does not obligate the Participating Agencies, separately or jointly, to accept any proposal,negotiate with any proposer, award a franchise agreement, or proceed with the development of anyproject or service described in response to this RFP. Neither the District nor any of the ParticipatingAgencies have any obligation to compensate any proposer for any expense incurred preparing itsproposal and participating in this procurement process.Submission of a proposal shall constitute acknowledgment and acceptance of all the terms andconditions contained in this RFP and Model Franchise Agreement, including all addenda or amendmentsissued by the Participating Agency as per the schedule provided in this RFP with the exception thatproposers may take exceptions to the RFP and Model Franchise Agreement in accordance with Section5.9 of this RFP. Submittal of a proposal signifies proposer's commitment to provide the proposedservices, if selected. In addition, all aspects, conditions and components of proposals submitted shall bevalid for one year. Proposals may not be altered after submittal, except in response to the ParticipatingAgency's request for clarification.The District and Participating Agencies shall have the right (but not the obligation) to perform a reviewof any one, or each, proposer's ability to perform the work required. Each proposer must agree tocooperate with such a review. Such cooperation by proposer shall apply to the verification of theproposer's capability and experience in the provision of services and any other component of work thatmay be required under this procurement.The District, Participating Agencies, and their consultants or legal counsel may be conducting referencechecks on proposers that will involve contacting municipalities currently or previously served byproposer, as well as contacting regulatory agencies involved in the oversight of proposers' facilities andoperations. In addition, the review may include proposers' litigation history, regulatory actions, highwaydriving records, and recycling history. The proposer's submission of a proposal shall constitute anagreement to cooperate with such a review.



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4.3 Proposal Submittal ProcessCompanies submitting proposals to the Participating Agency shall follow the procedures described inthis Section 4.3 and the procedures included in subsequent clarifications or addendums to this RFP,which are issued by the District or its consultant.

4.3.1 Step One - Register for Correspondence, RFP, and AnnouncementsEach proposer must request that it be placed on the list of interested parties in order to receive the RFP,future correspondence, and announcements related to this RFP. The deadline for submitting a requestto be included in this RFP process is June 25, 2013 (provided that the party attended the pre-proposalmeeting described in Section 4.3.3). Proposers that fail to register by the specified deadline may notreceive RFP related correspondence, addenda, or other communications. Proposers are asked to emailsaid request to the District's consultant at the email address below, receipt confirmation requested.HF&H Consultants, LLCATTN: Mr. Rob Hilton, Vice PresidentPhone: 925-977-6959Email: [email protected] Step Two - Submission of Written QuestionsThe District directs proposers to submit all questions and requests for information in writing directly toits consultant and refrain from contacting District or Participating Agency employees or elected officials.Therefore, any questions, requests for clarification, or requests for additional information regarding thisRFP must be submitted in writing via email to HF&H Consultants at the email address listed in Section4.3.1 on or before 4:00 p.m., June 14, 2013. Proposers may also contact the District's consultant bytelephone prior to the question deadline; however, proposers should not rely on any verbal responsesor clarifications unless and until provided in a writ ten response.Written requests for clarifications will be responded to in writing and shared with all interestedproposers of record.

4.3.3 Step Three - Mandatory Pre-Proposal MeetingThe mandatory pre-proposal meeting will be held at 10:00 a.m., on Thursday, June 20, 2013 in theDistrict's Board Room located in the Administration Building at the District's site, located at 14201 DelMonte Boulevard, Marina, California. Proposer must R.S.V.P. in writing to the District's consultant byJune 7, 2013. Attendance at this meeting is mandatory. The District and/or Participating Agencies may,but are not obligated to, reject proposals received from proposers that do not attend the pre-proposalmeeting. Proposers are encouraged to submit questions in advance of the meeting (in accordance withSection 4.3.2) or prepare and pose questions at the pre-proposal meeting. Preliminary oral responses to



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questions will be provided at the discretion of the District's consultant and legal counsel at the preproposal meeting.

Written responses to questions will be provided by July 12, 2013 to all registered interested parties. Inthe event of any inconsistencies between oral responses provided at the pre-proposal meeting andwritten responses subsequently issued, the written responses must be used for the purpose ofpreparing proposals.Additional questions may be submitted up to June 28, 2013. Writ ten requests for clarifications will beresponded to in writing and shared with all interested proposers of record.

4.3.4 Step Four - Proposal SubmittalProposer shall submit five {Agencies- Please let us know if ou have any specific reguirements for thenumber of copies you must receive/retain.} bound double-sided copies of the complete proposal. Inaddition, proposers are required to submit a flash drive containing:

1) An electronic copy of all completed cost proposal forms (i.e., those provided in Attachment E ofthe RFP) formatted for Microsoft Excel;

2) An electronic copy of the Model Franchise Agreement, noting all requested changes inredline/strikeout, in Microsoft Word format; and,

3) A complete PDF ofthe proposal (excluding financial statements, if confidential).These items shall be placed and submitted in a sealed package. Proposals must be printed on 8>'2 inch by11 inch paper with 100% post-consumer recycled-content paper. All pages shall be consecutivelynumbered; although, each section may start with a new page number if proceeded with the sectionnumber (e .g., Page 2-1 for the

Documents

RFP for Solid Waste, Recycling and Organics Collection Services 05-07-13