21-232 Recology, Recyclable Materials, Organic Materials and Solid Waste Collection, Processing Services and Transport for Disposal
FRANCHISE AGREEMENT
BETWEEN
CITY OF CUPERTINO
AND
RECOLOGY CUPERTINO
FOR
RECYCLABLE MATERIALS, ORGANIC MATERIALS, AND SOLID
WASTE COLLECTION,
RECYCLABLE MATERIALS AND ORGANIC MATERIALS
PROCESSING SERVICES,
AND
TRANSPORT FOR DISPOSAL
DECEMBER 3, 2020
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December 3, 2020 -i- City of Cupertino/Recology Franchise Agreement
Table of Contents
RECITALS ..................................................................................................................................... 1
ARTICLE 1. GRANT AND ACCEPTANCE OF FRANCHISE ...................................................................... 2
1.1 GRANT AND ACCEPTANCE OF FRANCHISE ........................................................................ 2
1.2 LIMITATIONS TO THE FRANCHISE .................................................................................... 2
1.3 OBLIGATIONS OF PARTIES .............................................................................................. 5
ARTICLE 2. TERM OF AGREEMENT ................................................................................................. 5
2.1 TERM AND OPTION TO EXTEND ...................................................................................... 5
2.2 CONDITIONS TO EFFECTIVENESS OF AGREEMENT ............................................................. 5
ARTICLE 3. SCOPE OF AGREEMENT ................................................................................................ 6
3.1 SUMMARY SCOPE OF SERVICES ...................................................................................... 6
3.2 USE OF APPROVED FACILITIES......................................................................................... 7
3.3 SUBCONTRACTING ........................................................................................................ 7
3.4 RESPONSIBILITY FOR MATERIALS .................................................................................... 8
3.5 CITY-DIRECTED CHANGES TO SCOPE ................................................................................ 8
ARTICLE 4. SCOPE OF SERVICES ..................................................................................................... 9
4.1 RECYCLABLE MATERIALS ................................................................................................ 9
4.2 ORGANIC MATERIALS ...................................................................................................14
4.3 SOLID WASTE...............................................................................................................18
4.4 ON-CALL, BULKY ITEM, BIN-BY-THE-DAY, AND CITY-WIDE RECYCLING COLLECTION EVENTS ..19
4.5 C&D COLLECTION .........................................................................................................19
4.6 SPECIAL EVENTS ...........................................................................................................20
4.7 PUBLIC EDUCATION AND OUTREACH ..............................................................................21
4.8 TECHNICAL ASSISTANCE ................................................................................................23
4.9 BILLING .......................................................................................................................24
4.10 CUSTOMER SERVICE PROGRAM .....................................................................................26
4.11 ACCESS TO CUSTOMER SERVICE AND BILLING SYSTEMS ....................................................32
4.12 SERVICE EXEMPTIONS ...................................................................................................32
4.13 CONTAMINATION MONITORING ....................................................................................34
4.14 SB 1383 INSPECTIONS AND ENFORCEMENT ....................................................................36
4.15 EDIBLE FOOD RECOVERY PROGRAM ...............................................................................39
4.16 SB 1383 COMPLIANCE APPROACH ..................................................................................39
ARTICLE 5. STANDARD OF PERFORMANCE.....................................................................................40
5.1 GENERAL .....................................................................................................................40
5.2 OPERATING HOURS AND SCHEDULES .............................................................................40
5.3 COLLECTION STANDARDS ..............................................................................................40
5.4 TRANSFER AND PROCESSING STANDARDS ......................................................................43
5.5 COLLECTION VEHICLE REQUIREMENTS ...........................................................................44
5.6 CONTAINER REQUIREMENTS .........................................................................................46
5.7 PERSONNEL .................................................................................................................51
5.8 HAZARDOUS WASTE INSPECTION AND HANDLING ...........................................................53
December 3, 2020 -ii- City of Cupertino/Recology Franchise Agreement
5.9 CONTRACT MANAGEMENT ...........................................................................................54
5.10 ENVIRONMENTALLY-PREFERABLE PURCHASING ..............................................................55
5.11 DIVERSION REQUIREMENTS ..........................................................................................55
ARTICLE 6. RECORD KEEPING AND REPORTING ..............................................................................56
6.1 RECORD KEEPING .........................................................................................................56
6.2 REPORT SUBMITTAL REQUIREMENTS .............................................................................57
6.3 PERFORMANCE REVIEW AND AUDIT ..............................................................................58
ARTICLE 7. CITY FEES ...................................................................................................................58
7.1 FRANCHISE FEE ............................................................................................................58
7.2 SOLID WASTE FUND OPERATIONS FEE ............................................................................59
7.3 ADJUSTMENT TO FEES ..................................................................................................59
7.4 PAYMENT SCHEDULE AND LATE FEES .............................................................................59
7.5 PROCUREMENT REIMBURSEMENT FEE ...........................................................................60
7.6 OTHER MONIES DUE TO CITY .........................................................................................60
ARTICLE 8. CONTRACTOR'S COMPENSATION .................................................................................60
8.1 GENERAL .....................................................................................................................60
8.2 CONTRACTOR’S COMPENSATION AND ANNUAL ADJUSTMENTS ........................................61
8.3 EXTRAORDINARY RATE ADJUSTMENTS ...........................................................................64
ARTICLE 9. INDEMNITY, INSURANCE, AND PERFORMANCE BOND ....................................................65
9.1 INDEMNIFICATION .......................................................................................................65
9.2 INSURANCE .................................................................................................................67
9.3 PERFORMANCE BOND ..................................................................................................68
ARTICLE 10. DEFAULT AND REMEDIES ...........................................................................................69
10.1 EVENTS OF DEFAULT ....................................................................................................69
10.2 OPPORTUNITY TO CURE ................................................................................................70
10.3 CITY’S REMEDIES IN THE EVENT OF DEFAULT ...................................................................71
10.4 POSSESSION OF RECORDS UPON TERMINATION ..............................................................71
10.5 CITY'S REMEDIES CUMULATIVE; SPECIFIC PERFORMANCE .................................................72
10.6 PERFORMANCE STANDARDS AND LIQUIDATED DAMAGES ................................................72
10.7 EXCUSE FROM PERFORMANCE ......................................................................................73
10.8 RIGHT TO DEMAND ASSURANCES OF PERFORMANCE ......................................................74
10.9 DISPUTE RESOLUTION...................................................................................................74
ARTICLE 11. REPRESENTATIONS AND WARRANTIES OF THE PARTIES ...............................................75
11.1 CONTRACTOR’S CORPORATE STATUS .............................................................................75
11.2 CONTRACTOR’S CORPORATE AUTHORIZATION ................................................................75
11.3 AGREEMENT WILL NOT CAUSE BREACH ..........................................................................75
11.4 NO LITIGATION ............................................................................................................76
11.5 NO ADVERSE JUDICIAL DECISIONS ..................................................................................76
11.6 NO LEGAL PROHIBITION ................................................................................................76
11.7 CONTRACTOR’S ABILITY TO PERFORM ............................................................................76
11.8 CONTRACTOR’S INVESTIGATION ....................................................................................76
11.9 STATEMENT AND INFORMATION IN PROPOSAL ...............................................................76
December 3, 2020 -iii- City of Cupertino/Recology Franchise Agreement
ARTICLE 12. OTHER AGREEMENTS OF THE PARTIES ........................................................................77
12.1 RELATIONSHIP OF PARTIES ............................................................................................77
12.2 COMPLIANCE WITH LAW...............................................................................................77
12.3 GOVERNING LAW .........................................................................................................77
12.4 JURISDICTION ..............................................................................................................77
12.5 BINDING ON SUCCESSORS .............................................................................................77
12.6 ASSIGNMENT ...............................................................................................................77
12.7 NO THIRD PARTY BENEFICIARIES ....................................................................................79
12.8 WAIVER ......................................................................................................................79
12.9 NOTICE PROCEDURES ...................................................................................................79
12.10 REPRESENTATIVES OF THE PARTIES ............................................................................80
ARTICLE 13. MISCELLANEOUS AGREEMENTS..................................................................................80
13.1 ENTIRE AGREEMENT .....................................................................................................80
13.2 SECTION HEADINGS ......................................................................................................80
13.3 REFERENCES TO LAWS ..................................................................................................80
13.4 AMENDMENTS ............................................................................................................81
13.5 SEVERABILITY ..............................................................................................................81
13.6 COUNTERPARTS ...........................................................................................................81
13.7 DEFINITIONS ................................................................................................................81
13.8 EXHIBITS .....................................................................................................................81
December 3, 2020 -iv- City of Cupertino/Recology Franchise Agreement
List of Exhibits
A. Definitions
B. Direct Services
B1. Single-Family Residential Services
B2. Multi-Family Residential Services
B3. Commercial Services
B4. City Services
B5. City Facility Service Levels, Locations, and Special Events
C. Public Education and Outreach Requirements
D. Reporting Requirements
E. Rate Adjustment Methodology
E1. Multi-Index Rate Adjustment Methodology
E2. Cost-Based Rate Adjustment Methodology
F. Performance Standards and Liquidated Damages
G. Excerpts of Contractor’s Proposal
G1. Excerpts of Technical Proposal
G2. Cost Basis for Proposal
G3. Initial Rates for Collection Services
G4. Approved Subcontractors and Affiliates
H. Minimum Anticipated Positions
I. Form of Performance Bond
J. SB 1383 Responsibilities
K. Guaranty Agreement
L. Diversion Data
December 3, 2020 -1- City of Cupertino/Recology Franchise Agreement
Franchise Agreement 1
between 2
City of Cupertino 3
and 4
Recology Cupertino 5
for Recyclable Materials, Organic Materials, and Solid Waste 6
Collection, Recyclable Materials and Organic Materials Processing 7
Services, and Transport For Disposal 8
THIS FRANCHISE AGREEMENT (“Agreement”) is made and entered into as of ________________, 2020 9
between the City of Cupertino, California, a political subdivision of the State of California (hereinafter, the 10
"City"), and Recology South Bay (d/b/a Recology Cupertino), a California corporation (hereinafter, 11
"Contractor"). 12
RECITALS 13
This Agreement is entered into with reference to the following facts and circumstances: 14
WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste 15
Management Act of 1989 (AB 939) (California Public Resources Code Section 40000 et seq.), has declared 16
that it is in the public interest to authorize and require local agencies to make adequate provisions for 17
Solid Waste Collection within their jurisdiction; and, 18
WHEREAS, the State of California has found and declared that the amount of refuse generated in 19
California, coupled with diminishing Disposal capacity, potential adverse environmental impacts from 20
landfilling, and the need to conserve natural resources, have created an urgent need for State and local 21
agencies to enact and implement an aggressive integrated waste management program. The State has, 22
through enactment of AB 939 and subsequent related legislation including, but not limited to: the Jobs 23
and Recycling Act of 2011 (AB 341), the Event and Venue Recycling Act of 2004 (AB 2176), SB 1016 24
(Chapter 343, Statutes of 2008 [Wiggins, SB 1016]), the Mandatory Commercial Organics Recycling Act of 25
2014 (AB 1826), and the Short-Lived Climate Pollutants Bill of 2016 (SB 1383), directed the responsible 26
State agency, and all local agencies, to promote Diversion and to maximize the use of feasible waste 27
reduction, re-use, Recycling, and Composting options in order to reduce the amount of refuse that must 28
be Disposed; and, 29
WHEREAS, SB 1383 establishes regulatory requirements for jurisdictions, Generators, haulers, Solid Waste 30
facilities, and other entities to support achievement of State-wide Organic Waste Disposal reduction 31
targets; and, 32
WHEREAS, SB 1383 requires the City to implement Collection programs, meet Processing Facility 33
requirements, conduct contamination monitoring, provide education, maintain records, submit reports, 34
monitor compliance, conduct enforcement, and fulfill other requirements; and, the City has chosen to 35
delegate some of its responsibilities to Contractor, acting as the City’s designee, through this Agreement; 36
and, 37
December 3, 2020 -2- City of Cupertino/Recology Franchise Agreement
WHEREAS, pursuant to California Public Resources Code Section 40059(a)(2), the City Council has 38
determined that the public health, safety, and well-being require that an exclusive right be awarded to a 39
qualified contractor to provide for certain Collection, Processing, and Transport of Recyclable Materials, 40
Organic Materials, and C&D, and Disposal of Solid Waste, and other services related to meeting the City’s 41
health, safety, well-being, economic and environmental goals; and, 42
WHEREAS, the City further declares its intent to approve reasonable maximum Rates for the Collection, 43
Processing, Transport, and/or Disposal of Recyclable Materials, Organic Materials, Solid Waste, and C&D, 44
and other services related thereto; and, 45
WHEREAS, the City desires, having determined that Contractor, by demonstrated experience, reputation 46
and capacity is qualified to provide for both the Collection of Recyclable Materials, Organic Materials, 47
Solid Waste, and C&D within the corporate limits of the City and the Transportation of such material to 48
appropriate places of Processing, Recycling, Composting, and/or Disposal, and that Contractor be engaged 49
to perform such services on the basis set forth in this Agreement; and, 50
WHEREAS, the City and Contractor have attempted to address conditions affecting their performance of 51
services under this Agreement, but recognize that reasonably unanticipated conditions may occur during 52
the Term of this Agreement that will require the Parties to meet and confer to reasonably respond to such 53
changed conditions; and 54
WHEREAS, under Municipal Code Section 6.24.120, the City Council may enter into an exclusive contract 55
with any Person or entity the Council believes is qualified to perform Collection, Processing, Transport, 56
and Disposal service, and such contract shall require the Contractor to render service to all Residential 57
and Commercial Premises within the City in accordance with the Municipal Code, and otherwise under 58
such terms as the City Council deems necessary to protect the best interests of the City; 59
NOW, THEREFORE, in consideration of the mutual promises, covenants, and conditions contained in this 60
Agreement and for other good and valuable consideration, the Parties agree as follows: 61
ARTICLE 1. 62
GRANT AND ACCEPTANCE OF FRANCHISE 63
1.1 GRANT AND ACCEPTANCE OF FRANCHISE 64
By the signing of this Agreement the City grants to Contractor and Contractor accepts the exclusive right 65
and franchise, within the corporate limits of the City, to Collect and Transport all Recyclable Materials, 66
Organic Materials, Yard Trimmings, Construction and Demolition Debris, and Solid Waste generated or 67
accumulated within the corporate limits of the City, subject to the limitations described herein and except 68
where otherwise precluded by Federal, State, and local laws and regulations. 69
1.2 LIMITATIONS TO THE FRANCHISE 70
The award of this Agreement shall not preclude the activities specified in this Section 1.2 by Persons other 71
than Contractor, provided that nothing in this Agreement is intended to or shall be construed to excuse 72
any Person from obtaining any authorization from the City, which is otherwise required by law. Contractor 73
acknowledges and agrees that the City may permit other Persons besides Contractor to Collect any and 74
all types of materials excluded from the scope of this Agreement without seeking or obtaining approval 75
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of Contractor. If Contractor can produce evidence that other Persons are servicing Collection Containers 76
or are Collecting and Transporting Recyclable Materials, Organic Materials, C&D, and/or Solid Waste in a 77
manner that is not consistent with this Agreement or the Municipal Code, it shall report it to the City 78
Contract Manager along with Contractor’s evidence. Contractor shall have primary responsibility to notify 79
the Generator and such Person of Contractor’s rights under this Agreement. 80
A. Recyclable and Organic Materials. Collection and Transport of Recyclable Materials and Organic 81
Materials that have been Source Separated from Solid Waste by the Generator and that: (1) 82
Generator sells or donates to any other Person, provided that there is no net payment made by 83
the Generator to such other Person; or, (2) have a value equal to or more than the cost of 84
Collection. 85
B. Self-Hauled Materials. Transport and Disposal by a Property Owner of Recyclable Materials, 86
Organic Materials, and Solid Waste generated in or on the Premises by the Property Owner or a 87
Person leasing or renting the Premises from the Property Owner, using a vehicle such Person owns 88
or controls. 89
C. Construction and Demolition Debris (C&D). Collection and Transport of mixed material 90
Construction and Demolition Debris (C&D) by a licensed construction or demolition contractor as 91
part of a total service offered by that contractor when removal is performed by an employee of 92
the contractor using equipment owned by the contractor, rather than as a hauling service, and 93
consistent with the Municipal Code and other Applicable Law. C&D materials Source Separated 94
for the purpose of Recycling are considered Recyclable Materials. In cases where Contractor does 95
not have the equipment needed for timely removal of C&D materials or due to other extenuating 96
circumstance, a third party hauling service may be used with advance approval of both Contractor 97
and the City Contract Manager. 98
D. Donated or Sold Materials. Collection and Transport of any items that are Source Separated at 99
any Premises by the Generator and sold or donated to other Persons, including youth, civic, or 100
charitable organizations, as provided in Section 1.2.A. 101
E. Edible Food. Collection and Transport of Edible Food from a Generator by other Person(s), such 102
as a Person from a Food Recovery Organization or Food Recovery Service, for the purposes of 103
Food Recovery; or Self-Haul of Edible Food by the Generator to another Person(s), such as a 104
Person from a Food Recovery Organization, for the purposes of Food Recovery, regardless of 105
whether the Generator donates, sells, or pays a fee to the other Person(s) to Collect or receive 106
the Edible Food. 107
F. Food Scraps. Collection and Transport of Food Scraps that are Source Separated by the Generator 108
and used by the Generator or distributed to other Person(s) for lawful use as animal feed, in 109
accordance with 14 CCR Section 18983.1(b)(7). Such Food Scraps may be Self-Hauled by the 110
Generator or Transported by another Person. If Contractor produces evidence to City that use of 111
this exception by Commercial haulers is adversely affecting the value of this franchise, Diversion 112
levels, or compliance with City ordinances, then the Parties shall meet and confer and City will 113
consider in good faith whether to institute a permit system regulating such haulers or take other 114
appropriate action to address the problem. 115
G. Materials That Contractor Does Not Divert. Source Separated materials that Contractor is not 116
required to Collect, Process, and Divert under this Agreement as of the Effective Date that 117
December 3, 2020 -4- City of Cupertino/Recology Franchise Agreement
subsequently, in the City’s reasonable judgment, become economically feasible to Divert. In such 118
event, Contractor shall have the exclusive right to Collect, Process, and Divert such materials if 119
Contractor agrees to do so without any change in Rates. If Contractor is unwilling to Collect, 120
Process, and Divert such materials without any change in Rates, the City may provide for 121
Collection, Processing, and Diversion of such materials in any manner it deems appropriate. Such 122
materials may include, but are not limited to, Organic Materials that Contractor would otherwise 123
Dispose. Contractor may not enforce its exclusive franchise rights in a manner that would prevent 124
the Diversion of new material that Contractor is unable or unwilling to Collect, Process, and Divert 125
without any change in Rates. 126
H. Beverage Containers. Collection and Transport of containers delivered for Recycling under the 127
California Beverage Container Recycling and Litter Reduction Act, California Public Resources 128
Code Section 14500, et seq. 129
I. Materials Removed by Customer’s Contractor as Incidental Part of Services. Collection and 130
Transport of Recyclable Materials, Organic Materials, Solid Waste, and Bulky Items removed from 131
a Premises by a contractor (e.g., gardener, landscaper, tree-trimming service, Residential clean-132
out service) as an incidental part of the service being performed, rather than as a separately 133
contracted or subcontracted hauling service, where the removal is performed by such 134
contractor’s employees using only equipment owned by the contractor and in compliance with 135
Applicable Law or if such contractor is providing a service that is not included in the scope of this 136
Agreement. 137
J. On-site or Community Composting. Use of Organic Materials Composted or otherwise legally 138
managed at the Premises where it is generated (e.g., backyard Composting or on-site anaerobic 139
digestion) or Collection and Transport of such Organic Materials by the Generator for use at a 140
Community Composting site. 141
K. Animal, Grease Waste, and Used Cooking Oil. Collection and Transport of (i) animal waste and 142
remains from slaughterhouse or butcher shops, (ii) grease, or (iii) used cooking oil in quantities 143
(e.g., from food service establishments). 144
L. Horse Manure. Collection and Transport of horse manure from Residential and Commercial 145
Premises. 146
M. Sewage Treatment By-Product. Collection and Transport of by-products of sewage treatment, 147
including sludge, sludge ash, grit, and screenings, including non-Hazardous material that is greater 148
than fifty percent (50%) liquid (including septic tank pumpings and other liquid wastes). 149
N. Excluded Waste. Collection and Transport of Excluded Waste regardless of its source. 150
O. Materials Generated by State and County Facilities. Collection and Transport of materials 151
generated by State and County facilities located in the City including, but not limited to, the 152
Cupertino Union School District, provided that the Generator has arranged services with other 153
Persons or has arranged services with Contractor through a separate agreement. 154
This Agreement and scope of this franchise shall be interpreted to be consistent with applicable Federal, 155
State, and local laws and regulations, now and during the Term of the Agreement. If applicable Federal, 156
State, and local laws and regulations limit the ability of the City to lawfully contract for the scope of 157
December 3, 2020 -5- City of Cupertino/Recology Franchise Agreement
services in the manner and consistent with all provisions as specifically set forth herein, Contractor agrees 158
that the scope of the Agreement will be revised and limited as required by such Applicable Law and that 159
the City shall not be responsible for any lost profits or losses claimed by Contractor to arise out of such 160
revisions or limitations. 161
1.3 OBLIGATIONS OF PARTIES 162
In addition to the specific performance required under the Agreement, the City and Contractor shall: 163
A. Use their reasonable Commercial efforts to enforce the exclusive nature of the franchise. 164
Contractor may take legal action to protect the exclusive franchise rights granted to it under this 165
Agreement; City shall have no obligation to pursue such enforcement on Contractor’s behalf. 166
B. Provide timely notice to one another of a perceived failure to perform any obligations under this 167
Agreement and access to information supporting any claim of the other Party’s failure to perform. 168
C. Provide timely access to the City Contract Manager and Contractor’s Contract Manager and 169
complete and timely response to requests of the other Party. 170
D. Provide timely notice of matters that may affect either Party’s ability to perform under the 171
Agreement. 172
ARTICLE 2. 173
TERM OF AGREEMENT 174
2.1 TERM AND OPTION TO EXTEND 175
The Term of this Agreement shall commence February 1, 2021 (the “Commencement Date”) and continue 176
in full force for a period of ten (10) years, through and including January 31, 2031, unless the Agreement 177
is extended in accordance with this Section or terminated pursuant to Section 10.3. Between the Effective 178
Date and Commencement Date, Contractor shall perform all activities necessary to prepare itself to start 179
providing services required by this Agreement on the Commencement Date. 180
This Agreement may be extended by mutual agreement of the Parties one or more times without 181
amendment for a period of no more than five (5) additional years for a total Term that does not extend 182
beyond January 31, 2036. If the City desires to extend the Agreement, the City shall provide Contractor 183
with a written offer to extend the Agreement at least one (1) y ear before the expiration of the initial Term 184
and at least one (1) year before the expiration of any extended term. Such offer by the City shall specify 185
the duration of the extension, which shall be in one (1) year increments. Contractor shall respond to City’s 186
offer within thirty (30) days stating in writing whether it accepts or declines City’s offer. If this Agreement 187
is extended pursuant to this paragraph, then Rates for Rate Period Eleven (11) will be established using 188
the cost-based Rate adjustment methodology described in Exhibit E2. 189
2.2 CONDITIONS TO EFFECTIVENESS OF AGREEMENT 190
The obligation of the City to permit this Agreement to become effective and to perform its undertakings 191
provided for in this Agreement is subject to the satisfaction o f all the conditions below, each of which may 192
be waived, in written form only, in whole or in part by the City, in its sole discretion. 193
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A. Accuracy of Representations. Contractor’s representations and warranties made in Contractor’s 194
Proposal and Article 11 are true and correct on and as of the Effective Date. 195
B. Furnishings of Insurance and Performance Bond. Contractor has furnished evidence of the 196
insurance and performance bond required by Article 9 that is satisfactory to the City. 197
C. Permits Furnished. Contractor has provided the City with copies of all permits necessary for use 198
and operation of all Approved Facilities owned or operated by Contractor or any Subcontractor 199
under the terms of this Agreement. 200
D. Legal Challenge. There is no litigation pending, or threatened in writing, challenging the award of 201
this Agreement or actions related thereto, or seeking to restrain or enjoin the performance of this 202
Agreement. Notwithstanding anything to the contrary in this Agreement, Contractor shall be 203
entitled to rescind this Agreement upon thirty (30) calendar days’ prior written notice to the City 204
if the condition is not satisfied or waived in writing by the City within sixty (60) days after the date 205
the City Council approves this Agreement. 206
ARTICLE 3. 207
SCOPE OF AGREEMENT 208
3.1 SUMMARY SCOPE OF SERVICES 209
Contractor or its Subcontractor(s) shall be responsible for the following: 210
A. Providing a three-Container Collection program for the separate Collection of Recyclable 211
Materials, Organic Materials, and Solid Waste placed for Collection by Customers pursuant to the 212
requirements of Article 4 and Exhibit B; 213
B. Collecting C&D placed for Collection by Customers pursuant to the requirements of Article 4 and 214
Exhibit B; 215
C. Transporting Collected materials to the appropriate Approved Facilities pursuant to the 216
requirements of Article 4 and Exhibit B; 217
D. Ensuring the Processing of Collected Recyclable Materials, Organic Materials, and C&D at the 218
appropriate Approved Facilities pursuant to the requirements of Article 4 and Exhibit B; 219
E. Performing all other services required by this Agreement including, but not limited to, Customer 220
billing, public education, Customer service, contamination monitoring, record keeping, and 221
reporting pursuant to Articles 4 and 6 and Exhibits C and D; 222
F. Furnishing all labor, supervision, vehicles, Containers, other equipment, materials, supplies, and 223
all other items and services necessary to perform its obligations under this Agreement; 224
G. Paying all expenses related to provision of services required by this Agreement including, but not 225
limited to, taxes, regulatory fees (including City fees), and utilities; 226
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H. Performing or providing all services necessary to fulfill Contractor’s obligations in full accordance 227
with this Agreement at all times using best industry practice for comparable operations; and, 228
I. Complying with all applicable Federal, State, and local laws and regulations. 229
The enumeration and specification of particular aspects of service, labor, or equipment requirements shall 230
not relieve Contractor of the duty to perform all other tasks a nd activities necessary to fulfill its obligations 231
under this Agreement, regardless of whether such requirements are enumerated elsewhere in the 232
Agreement, unless excused in accordance with Section 10.7. 233
3.2 USE OF APPROVED FACILITIES 234
Contractor, without constraint and as a free-market business decision in accepting this Agreement, agrees 235
to use the Approved Facilities for the purposes of Processing and/or Disposing of all Recyclable Materials, 236
Organic Materials, Solid Waste, and other materials Collected in the City. Such decision by Contractor in 237
no way constitutes a restraint of trade notwithstanding any Change in Law regarding flow control 238
limitations or any definition thereof. The City may direct Contractor’s use of a Designated Facility, as 239
further described in this Section 3.2. The City exercise of such right shall not constitute a change in scope 240
under Section 3.5. 241
It is the City intent that Contractor arrange for Organic Materials and Recyclable Materials Processing, and 242
subcontract for such services at an Approved Recyclable Materials Processing Facility and an Approved 243
Organic Materials Processing Facility. Upon providing Contractor ninety (90) calendar days’ prior written 244
notice, the City may direct Contractor to use a Designated Recyclable Materials Processing Facility(ies), 245
subject to the Transfer provisions of Sections 4.1.B and 4.2.B, and with adjustment of Contractor 246
Compensation pursuant to a cost-based Rate adjustment as provided in Exhibit E2. City shall separately 247
contract with such Designated Recyclable Materials Processing Facility(ies) or, if mutually agreed by City 248
and Contractor, Contractor shall contract with such facility(ies). 249
The City’s current, separate contract for Disposal and C&D Processing terminates on November 20, 2023. 250
At any time during the Term, on or after August 20, 2023, the City may provide Contractor ninety (90) 251
calendar days’ prior written notice requiring Contractor to use a Designated Disposal Facility(ies) and/or 252
a Designated C&D Processing Facility(ies), subject to the Transfer provisions of Sections 4.3 or 4.5 as 253
applicable, and with adjustment of Contractor Compensation pursuant to a cost-based Rate adjustment 254
as provided in Exhibit E2. City shall separately contract with such Designated Disposal Facility(ies) and/or 255
Designated C&D Processing Facility(ies), or, if mutually agreed by City and Contractor, Contractor shall 256
contract with such facility(ies). 257
3.3 SUBCONTRACTING 258
Contractor shall not engage any Subcontractors for Collection or Transportation of Recyclable Materials, 259
Organic Materials, Solid Waste, or C&D Materials, or for Processing of Organic Materials without the prior 260
written consent of the City Contract Manager. As of the Effective Date, the City has approved Contractor’s 261
use of those Subcontractors identified in Contractor’s Proposal, included herein as Exhibit G4. Upon ten 262
(10) Business Days’ prior written notice by the City, Contractor shall provide the City, or permit the City to 263
inspect, a copy of the fully-executed version of any subcontract. 264
Affiliates may only provide services under this Agreement as Subcontractors. Notwithstanding the 265
foregoing, if Contractor plans to engage an Affiliate as a Subcontractor in the provision of services, other 266
December 3, 2020 -8- City of Cupertino/Recology Franchise Agreement
than those identified in Contractor’s Proposal for the limited purposes described in Contractor’s Proposal, 267
Contractor shall provide the City Contract Manager with thirty (30) calendar days’ prior written notice of 268
its plans and provide an explanation of any potential impacts related to the quality, timeliness, or cost of 269
providing services under this Agreement. Any Affiliate subcontracted by Contractor under this Agreement, 270
including but not limited to the Approved Organic Materials Processing Facility, shall be deemed to be 271
one and the same as Contractor for the purposes of Contractor’s obligations under this Agreement and 272
the City shall not accept any excuse from performance on the basis of Contractor’s inability to compel the 273
performance of such an Affiliate. 274
Contractor shall be responsible for ensuring that all Subcontractors (including Affiliates) comply with all 275
material terms of this Agreement that specifically apply to the services subcontracted to them. 276
Subcontractors shall be solely responsible to Contractor throughout the performance of the services 277
under this Agreement. Assignment by Contractor of work to Subcontractors shall not relieve Contractor 278
of any obligation to the City for the work performed. 279
Notwithstanding any other provision of this Agreement, Contractor shall not be responsible for ensuring 280
the compliance of the Designated Disposal Facility or the Designated C&D Processing Facility with the 281
requirements of this Agreement, nor shall the Contractor be responsible for ensuring the compliance with 282
the requirements of this Agreement of any Designated Recyclable Materials Processing Facility that the 283
City may direct Contractor to use pursuant to Section 3.2. 284
3.4 RESPONSIBILITY FOR MATERIALS 285
Once Recyclable Materials, Organic Materials, Solid Waste, and/or C&D are placed in Contractor’s 286
Containers at the Collection location, the responsibility for their proper handling shall transfer directly 287
from the Generator to Contractor, with the exception of Excluded Waste if Contractor can identify the 288
Generator of such Excluded Waste pursuant to Section 5.8.B. Once Recyclable Materials, Organic 289
Materials, Solid Waste, and/or C&D are deposited by Contractor at the appropriate Approved Facility, 290
such materials shall become the responsibility of the Owner or operator of the Approved Facility with the 291
exception of Excluded Waste pursuant to Section 5.8.C. 292
Responsibility for Excluded Waste that has been inadvertently Collected by Contractor shall remain with 293
Contractor if Contractor cannot identify the Generator, and Contractor shall assume all responsibility for 294
its proper Disposal; however, nothing in this Agreement shall be deemed to limit any remedies Contractor 295
or its Affiliates may have against the Generator under applicable Federal, State, and local laws and 296
regulations. 297
3.5 CITY-DIRECTED CHANGES TO SCOPE 298
The City may request Contractor to implement modifications to e xisting services, to provide additional (or 299
reduced) services under this Agreement, or to otherwise modify Contractor’s obligations under this 300
Agreement. In such case, Contractor shall present, within thirty (30) calendar days after the City’s request, 301
unless an alternate schedule is mutually agreed-upon, a written proposal to provide such modified or 302
additional (or reduced) services or obligations, including the proposed manner of providing the modified 303
or additional (or reduced) services or obligations and the incremental cost (increase or decrease) of the 304
modified or additional (or reduced) services, and any proposed change in Contractor’s Compensation. The 305
City and Contractor shall meet and confer to negotiate Contractor’s Proposal and, if mutual agreement is 306
reached, shall amend this Agreement, as appropriate, to reflect the mutually agreed-upon terms and 307
December 3, 2020 -9- City of Cupertino/Recology Franchise Agreement
conditions. If the City and Contractor are unable to agree on terms and conditions within ninety (90) 308
calendar days after the City’s receipt of Contractor’s Proposal for such services, then the cost implications 309
of the modified, additional, or reduced services or obligations under Section 8.3 (Extraordinary Rate 310
Adjustments) will apply, or the City may permit other Persons to provide such services, provided that such 311
services do not conflict with the exclusivity granted to Contractor under Section 1.1. Nothing herein shall 312
prevent the City from soliciting cost and operating information from other Persons in order to inform the 313
City’s evaluation of Contractor’s Proposal. 314
At any time during the Term of this Agreement, the City may solicit proposals from other Persons for 315
services not contemplated under (and outside the scope of) this Agreement, including as provided in 316
Section 1.2.G. In the event that contracting with other Persons for such services will reduce Contractor’s 317
Compensation under this Agreement, as described in Article 8, Contractor shall be offered the opportunity 318
to match any other Person’s proposed pricing and be awarded the added scope of services. Nothing in 319
this Agreement shall prevent the City from contracting with other Persons in the event that Contractor is 320
unable or unwilling to provide such services at or below the cost proposed by the other Person. 321
City-directed changes in scope include, without limitation, any direction by City to use a different 322
Processing, Transfer, or Disposal Facility from the one then being used by Contractor, except those set 323
forth in Section 3.2, for which a cost-based Rate adjustment under Exhibit E2 is provided. 324
ARTICLE 4. 325
SCOPE OF SERVICES 326
Contractor shall perform services described in this Article 4. This Article 4 describes the general 327
requirements for the services to be provided. More specific requirements for how each service shall be 328
provided to each Customer Type are described in Exhibit B. Failure to specifically require an act necessary 329
to perform the service does not relieve Contractor of its obligation to perform such act. 330
4.1 RECYCLABLE MATERIALS 331
A. Collection. Contractor shall provide Recyclable Materials Collection services as described in 332
Exhibit B, for direct Transport to the Approved Recyclable Mate rials Processing Facility. Contractor 333
acknowledges that acceptable Recyclable Materials, as described in the definition of “Recyclable 334
Materials” in Exhibit A, may be modified by mutual agreement of the City and Contractor from 335
time to time during the Term of this Agreement. 336
B. Transfer. In the event the City directs Contractor to use a Designated Recyclable Materials 337
Processing Facility as provided in Section 3.2, the Parties will meet and confer, and the City will 338
determine if Transfer will be less expensive than direct Transport to the Designated Recyclable 339
Materials Processing Facility. The City will base its determination on a comparison of the 340
incremental added cost of direct Transport above the agreed distance threshold as described in 341
Exhibit G2, to the cost of Transfer including the Transfer tip fee and hourly Transport costs 342
provided in Exhibit G2, as escalated. If the City requires Contractor to provide for Transfer, 343
Contractor shall Transport Recyclable Materials from the Route to the Approved Transfer Facility, 344
at which time Contractor shall unload Recyclable Materials from Collection vehicles and load 345
Recyclable Materials into large-capacity vehicles and Transport such material to the Designated 346
Recyclable Materials Processing Facility. In the event the City approves use of the Approved 347
December 3, 2020 -10- City of Cupertino/Recology Franchise Agreement
Transfer Facility for Recyclable Materials, any Processing of Recyclable Materials shall be subject 348
to the applicable Processing requirements of Section 4.1.C. 349
Contractor shall keep or cause its Subcontractor to keep all existing permits and approvals 350
necessary for use and operation of the Approved Transfer Facility under the terms of this 351
Agreement. Upon request, Contractor shall provide copies of facility permits and/or notices of 352
violations (obtained from its Transfer Facility Subcontractor if necessary) to the City Contract 353
Manager. If Contractor is unable to use or operate the Approved Transfer Facility, then Contractor 354
shall be responsible for making other Transportation arrangements. In such event, Contractor 355
shall not be compensated for any additional costs, unless Contractor’s inability to use or operate 356
the Approved Transfer Facility was due to a Force Majeure Event, in which case Contractor shall 357
be entitled to recover any additional costs as an “other adjustment” in the next annual Rate 358
adjustment. If Contractor plans to change its Transfer method, Contractor shall obtain written 359
approval from the City prior to making the change. 360
C. Processing. 361
1. General. Contractor shall Transport and deliver all Recyclable Materials Collected in the City 362
to the Approved Recyclable Materials Processing Facility or the Designated Recyclable 363
Materials Processing Facility. All tipping fees and other costs associated with Transporting to 364
and Processing of such Recyclable Materials at the Approved Recyclable Materials Processing 365
Facility or the Designated Recyclable Materials Processing Facility and Disposing of the 366
Residue as required in Section 4.1.H below shall be paid by Contractor. 367
The Approved Recyclable Materials Processing Facility or the Designated Recyclable Materials 368
Processing Facility shall Process Recyclable Paper in a manner deemed not to constitute 369
landfill Disposal pursuant to 14 CCR Section 18983.1(a), which states that landfill Disposal 370
includes final disposition of Organic Waste (including Recyclable Paper) at a landfill or use of 371
Organic Waste (including Recyclable Paper) as Alternative Daily Cover (ADC) or Alternative 372
Intermediate Cover (AIC). 373
Contractor shall observe and comply with all regulations in effect at the Approved Recyclable 374
Materials Processing Facility or the Designated Recyclable Materials Processing Facility, and 375
cooperate with and take direction from the operator thereof with respect to delivery of 376
Recyclable Materials. In the event that the regulations, requirements, or policies of the 377
Approved Recyclable Materials Processing Facility or the Designated Recyclable Materials 378
Processing Facility are in conflict with the requirements of this Agreement, the requirements 379
of this Agreement shall supersede the regulations in effect at the facility with respect to 380
Contractor’s obligations to perform under this Agreement. 381
Contractor guarantees sufficient capacity at the Approved Recyclable Materials Processing 382
Facility or the Designated Recyclable Materials Processing Facility to Process all Recyclable 383
Materials Collected by Contractor under this Agreement throughout the Term of the 384
Agreement. 385
2. Contamination. Contractor shall actively work with the Approved Recyclable Materials 386
Processing Facility and/or the Designated Recyclable Materials Processing Facility, as 387
applicable, throughout the Term of this Agreement to ensure that contamination of the 388
Recyclable Materials Collected under this Agreement and delivered to the Processing Facility 389
December 3, 2020 -11- City of Cupertino/Recology Franchise Agreement
remains below the limits established by Applicable Law including, without limitation, 390
applicable regulations or regulatory guidance issued pursuant to SB 1383. 391
3. Permits. Contractor shall keep or cause its Subcontractor to keep all existing permits and 392
approvals necessary for use and operation of the Approved Recyclable Materials Processing 393
Facility under the terms of this Agreement. Upon request, Contractor shall provide copies of 394
facility permits and/or notices of violations (obtained from its Processing Facility 395
Subcontractor, if necessary) to the City Contract Manager. 396
D. Incompatible Materials. 397
If and to the extent 14 CCR Section 17409.5.8 (Incompatible Materials Limit in Recovered Organic 398
Waste) applies to the Approved Recyclable Materials Processing Facility or the Approved Transfer 399
Facility, Contractor shall ensure that such facilities comply with such code section. Such 400
compliance may be achieved via the alternative pathway set forth in Section 17409.5.9. 401
(Alternatives to Measurement Protocols) or any other means permitted by law. Whether each 402
such facility complies with 14 CCR Section 17409.5.8 shall be determined by the facility’s EA (as 403
defined in 14 CCR Section 17402(a)(5)). For convenience, and without limiting the foregoing, the 404
text of 14 CCR Section 17409.5.8 as it exists on the date hereof is as follows: 405
“Section 17409.5.8. Incompatible Materials Limit in Recovered Organic Waste. 406
(a) A transfer/processing facility or operation shall only send offsite that organic waste recovered 407
after processing from the source separated organic waste stream and from the mixed 408
waste organic collection stream that meets the following requirements: 409
(1) On and after January 1, 2022 with no more than 20 percent of incompatible material 410
by weight; and 411
(2) On and after January 1, 2024 with no more than 10 percent of incompatible material 412
by weight. 413
(b) The operator shall measure compliance with Subdivision (a) by using the following protocol: 414
(1) Use the same samples taken to comply with Sections 17409.5.2 and 17409.5.4 and the 415
same total weight of each of those samples. 416
(2) For each sample, remove any incompatible material and determine the weight of the 417
incompatibles in that sample. 418
(3) Then determine a ratio of the incompatible material for each type of organic waste in 419
the mixed waste organic collection stream and the source separated organic 420
waste collection waste stream by dividing the total from Subdivision (b)(2) by the 421
total from Subdivision (b)(1). 422
(4) Multiply the ratio determined pursuant to Subdivision (b)(3) for each type of organic 423
waste by the total weight of all of the same type of organic waste separated after 424
processing and destined for end-use, recovery or further processing. 425
December 3, 2020 -12- City of Cupertino/Recology Franchise Agreement
(5) Determine the total weight of incompatible materials separated from the mixed waste 426
organic collection stream and from the source separated organic waste stream 427
by adding the sum of all the weights calculated pursuant to Subdivision (b)(4). 428
(6) Determine the ratio of incompatible materials by taking the total weight of 429
incompatible materials determined pursuant to Subdivision (b)(5) and dividing by 430
the sum of the outgoing weights of the materials recovered from the mixed waste 431
organic collection stream and from the source separated organic waste stream. 432
(7) Determine the percentage of incompatible materials by multiplying the ratio 433
determined pursuant to Subdivision (b)(6) by 100. 434
(c) The recovered organic waste stream shall not be subject to Section 17409.5.8(a) if the 435
recovered organic waste is sent to one or more of the following types of facilities that will 436
further process that waste: 437
(1) A transfer/processing facility or operation that complies with Section 17409.5.8(a). 438
(2) A compostable material handling facility or operation that, pursuant to Section 439
17867(a)(16), demonstrates that the percentage of organic waste in the materials 440
sent to disposal is: 441
(A) On and after January 1, 2022, less than 20 percent. 442
(B) On and after January 1, 2024, less than 10 percent. 443
(3) An in-vessel digestion facility or operation that, pursuant to Section 17896.44.1, 444
demonstrates that the percentage of organic waste in the materials sent to 445
disposal is: 446
(A) On and after January 1, 2022, less than 20 percent. 447
(B) On and after January 1, 2024, less than 10 percent. 448
(4) An activity that meets the definition of a recycling center as described in Section 449
17402.5(d). 450
(d) The operator shall conduct a measurement in the presence of the EA when requested. 451
(e) If it is determined by the EA that the measurements do not accurately reflect the records, the 452
EA may require the operator to increase the frequency of measurements, revise the 453
measurement protocol, or both to improve accuracy. 454
(f) For the purposes of this section ‘disposal’ has the same meaning as ‘Activities that 6 constitute 455
landfill disposal’ as defined in Section 18982.” 456
E. Alternative Processing Facility. If Contractor is unable to Process Recyclable Materials at the 457
Approved Recyclable Materials Processing Facility or the Designated Recyclable Materials 458
Processing Facility due to an emergency or sudden and unforeseen closure of the Processing 459
December 3, 2020 -13- City of Cupertino/Recology Franchise Agreement
Facility as provided in Section 10.7. Contractor may use an alternative Processing Facility provided 460
that Contractor provides written notice to the City Contract Manager within forty-eight (48) hours 461
after Contractor becomes aware of such emergency or sudden and unforeseen closure. Pursuant 462
to Exhibit D, the notification shall include the following: (i) name of the applicable Approved 463
Recyclable Materials Processing Facility or Designated Recyclable Materials Processing Facility; (ii) 464
the Recycling and Disposal Reporting System Number of the Approved Recyclable Materials 465
Processing Facility or Designated Recyclable Materials Processing Facility; (iii) the date the 466
Approved Recyclable Materials Processing Facility or Designated Recyclable Materials Processing 467
Facility became unable to Process Recyclable Materials; (iv) description of the emergency or 468
unforeseen closure; (v) the period of time Contractor anticipates the temporary inability of the 469
Approved Recyclable Materials Processing Facility or Designated Recyclable Materials Processing 470
Facility to Process Recyclable Materials; and, (vi) Contractor’s proposed action plan to deliver 471
materials to an alternative Processing Facility for Processing or Contractor’s request for waiver to 472
Transport the Recyclable Materials to the Designated Disposal Facility for Disposal on a temporary 473
basis. 474
Upon receipt of notification by Contractor, the City shall evaluate the notification and determine 475
if the City shall require Contractor to use an alternative Processing Facility or allow Contractor to 476
Transport the Recyclable Materials to the Designated Disposal Facility for Disposal on a temporary 477
basis for a time period specified by the City. The City shall notify Contractor of its requirement 478
that Contractor use an alternative Processing Facility for Processing or use the Designated 479
Disposal Facility for Disposal, and the period of time that the City will allow the Recyclable 480
Materials to be redirected. Pursuant to 14 CCR Section 18984.13, the approved Disposal period 481
shall not exceed ninety (90) days after the date the Approved/Designated Processing Facility’s 482
emergency or unforeseen closure commenced, without prior receipt of written permission from 483
the City Contract Manager. 484
If the use of the alternative Processing Facility is anticipated to or actually does exceed thirty (30) 485
calendar days in a consecutive twelve (12) month period, the use of such alternative Processing 486
Facility shall be subject to approval by the City Contract Manager. The City Contract Manager may, 487
in their sole discretion, approve, conditionally approve, temporarily approve, or disapprove of the 488
use of the proposed alternative Processing Facility. In the event that the City disapproves the use 489
of the proposed alternative Processing Facility, the Parties shall meet and confer to determine an 490
acceptable alternative Processing Facility. 491
As appropriate for the type of Recyclable Materials to be delivered to the alternative Processing 492
Facility, the alternative Recyclable Materials Processing Facility shall meet the applicable facility 493
standards in this Agreement, and the Recyclable Materials shall thereafter be sent to: (i) an 494
allowable facility, operation, or used for an activity specified by pursuant to 14 CCR Section 495
18983.1(b) and not subsequently sent to landfill Disposal; (ii) a Transfer facility; or, (iii) a Disposal 496
Facility. 497
The performance of Recyclable Materials commodity markets shall not be considered an 498
acceptable basis for the need to use an alternative Processing Facility nor shall it serve as the basis 499
for any adjustment in Contractor’s Compensation under this Agreement, other than as specifically 500
contemplated in Exhibit E to this Agreement. In the event that a change in the Processing Facility 501
results in increased costs, the City may identify and direct Contractor to an alternative Processing 502
Facility that results in less cost than Contractor-identified alternative. 503
December 3, 2020 -14- City of Cupertino/Recology Franchise Agreement
Contractor shall be entitled to recover any actual, additional, and demonstrable direct costs (not 504
including overhead or profit) incurred to use an alternative Processing Facility under the 505
circumstances described in this section, as an “other adjustment” in the next annual Rate 506
adjustment. 507
Except for the emergency conditions described in this section, Contractor shall not change its 508
selection of the Approved Recyclable Materials Processing Facility without the City’s written 509
approval, which may be withheld in the City’s sole discretion. If Contractor proposes to use a 510
Recyclable Materials Processing Facility that is different than the Approved Recyclable Materials 511
Processing Facility, it shall request written approval from the City Contract Manager, which it may 512
grant at its discretion, at least sixty (60) calendar days prior to proposed use of the Processing 513
Facility and obtain City’s written approval no later than ten (10) calendar days prior to use of the 514
Processing Facility. 515
F. Separate Handling Requirements. In accordance with 14 CCR Section 17409.5.6, Contractor shall 516
keep Recyclable Materials separate from other Discarded Material streams and shall Process the 517
materials separately from other Discarded Material streams. 518
G. Marketing. Contractor shall be responsible for ensuring that the Approved Recyclable Materials 519
Processing Facility and/or Designated Recyclable Materials Processing Facility markets Recyclable 520
Materials Collected under this Agreement in a manner that is fully compliant with the 521
requirements of the Agreement, and shall include all such provisions in the Processing Facility 522
subcontract. Contractor’s marketing strategy shall promote the highest and best use of materials 523
presented in the waste management hierarchy established by AB 939. Where practical, the 524
marketing strategy should include use of local, regional, and domestic markets for Recyclable 525
Materials. 526
H. Residue Disposal. Residue from the Processing of Recyclable Materials Collected under this 527
Agreement at the Approved Recyclable Materials Processing Facility, which cannot be marketed, 528
shall be Disposed of by Contractor, or the Processing Facility Subcontractor, or used as ADC or 529
AIC. Residue delivered for Disposal shall not include any Excluded Waste. 530
4.2 ORGANIC MATERIALS 531
A. Collection. Contractor shall provide Organic Materials Collection services as described in Exhibit 532
B, for direct Transport to the Approved Transfer Facility. 533
B. Transfer. At the Approved Transfer Facility, Contractor shall unload Organic Materials from 534
Collection vehicles and load Organic Materials into large-capacity vehicles and Transport such 535
material to the Approved Organic Materials Processing Facility. Any Processing of Organic 536
Materials at the Approved Transfer Facility shall be subject to the applicable Processing 537
requirements in Section 4.2.C. 538
Contractor shall keep or cause its Subcontractor to keep all existing permits and approvals 539
necessary for use and operation of the Approved Transfer Facility(ies) under the terms of this 540
Agreement. Upon request, Contractor shall provide copies of facility permits and/or notices of 541
violations (obtained from its Transfer Facility Subcontractor if necessary) to the City Contract 542
Manager. If Contractor is unable to use or operate the Approved Transfer Facility, then Contractor 543
shall be responsible for making other Transportation arrangements. In such event, Contractor 544
December 3, 2020 -15- City of Cupertino/Recology Franchise Agreement
shall not be compensated for any additional costs, unless Contractor’s inability to use or operate 545
the Approved Transfer Facility was beyond Contractor’s control as provided in Section 10.7, in 546
which case Contractor shall be entitled to recover any additional costs as an “other adjustment” 547
in the next annual Rate adjustment. If Contractor plans to change its Transfer method, Contractor 548
shall obtain written approval from the City prior to making the change. 549
C. Processing. 550
1. General. Contractor shall Transport and deliver all Organic Materials Collected in the City to 551
the Approved Organic Materials Processing Facility. All tipping fees and other costs associated 552
with Transporting such Organic Materials to the Approved Organic Materials Processing 553
Facility and Disposing of the Residue as required in Section 4.2.H below shall be paid by 554
Contractor. 555
Subject to the limitations of Section 4.2.H (Residue Disposal), the Approved Organic Materials 556
Processing Facility shall Process Organic Materials in a manner deemed not to constitute 557
landfill Disposal pursuant to 14 CCR Section 18983.1(a), which states that landfill Disposal 558
includes final disposition of Organic Waste (including Organic Materials) at a landfill or use of 559
Organic Waste (including Organic Materials) as Alternative Daily Cover (ADC) or Alternative 560
Intermediate Cover (AIC). 561
Contractor shall observe and comply with all regulations in effect at the Approved Organic 562
Materials Processing Facility and cooperate with and take direction from the operator thereof 563
with respect to delivery of Organic Materials. In the event that the regulations, requirements, 564
or policies of the Approved Organic Materials Processing Facility are in conflict with the 565
requirements of this Agreement, the requirements of this Agreement shall supersede the 566
regulations in effect at the facility with respect to Contractor’s obligations to perform under 567
this Agreement. 568
Contractor guarantees sufficient capacity at the Approved Organic Materials Processing 569
Facility to Process all Organic Materials Collected by Contractor under this Agreement 570
throughout the Term of the Agreement. 571
2. Contamination. Contractor shall actively work with the Approved Organic Materials 572
Processing Facility throughout the Term of this Agreement to ensure that contamination of 573
the Organic Materials Collected under this Agreement and delivered to the Processing Facility 574
remains below the limits established by Applicable Law including, without limitation, 575
applicable regulations or regulatory guidance issued pursuant to SB 1383. 576
3. Permits. Contractor shall keep or cause its Subcontractor to keep all existing permits and 577
approvals necessary for use and operation of the Approved Organic Materials Processing 578
Facility under the terms of this Agreement. Upon request, Contractor shall provide copies of 579
facility permits and/or notices of violations (obtained from its Processing Facility 580
Subcontractor if necessary) to the City Contract Manager. 581
4. Compostable Plastics. Contractor and the City Contract Manager shall meet annually to 582
discuss the acceptance and Processing of Compostable Plastics. For any period of time during 583
the Term in which Contractor accepts and Processes Compostable Plastics collected through 584
franchises held by Recology or its Affiliates in the City and C ounty of San Francisco, San Mateo 585
December 3, 2020 -16- City of Cupertino/Recology Franchise Agreement
County, or Santa Clara County, the City reserves the rights to require Contractor, at no 586
additional Contractor Compensation, to Collect and Process Compostable Plastic bags used 587
by Customers to contain Organic Materials prior to placement in the Organic Materials 588
Container for Collection. In that event, Contractor shall Collect and Transport such materials 589
for Processing at the Approved Organic Materials Processing Facility, which shall liberate and 590
Process Organic Materials contained in Compostable Plastic bags and which shall be 591
prohibited from Disposing Organic Materials contained in Compostable Plastic bags. Should 592
Contractor cease to accept Compostable Plastics from other franchisees in the City and 593
County of San Francisco, San Mateo County, or Santa Clara County, and is no longer able to 594
accept Compostable Plastics from City Generators, Contractor shall provide the City Contract 595
Manager with at least ninety (90) days’ notice. 596
Pursuant to 14 CCR Sections 18984.1, Contractor shall submit to the City annually the written 597
notification contemplated by 14 CCR Sections 18984.1(a)(1)(A) and 18984.2(a)(1)(C) of 598
whether the Approved Organic Materials Processing Facility has and will continue to have the 599
capabilities to Process and recover Compostable Plastic (including Compostable Plastic bags) 600
when it Processes and recovers Organic Materials. 601
D. Incompatible Materials. 602
If and to the extent 14 CCR Section 17409.5.8 (Incompatible Materials Limit in Recovered Organic 603
Waste) applies to the Approved Organic Materials Processing Facility or the Approved Transfer 604
Facility, Contractor shall ensure that such facilities comply with such code section. Such 605
compliance may be achieved via the alternative pathway set forth in Section 17409.5.9. 606
(Alternatives to Measurement Protocols) or any other means permitted by law. Whether each 607
such facility complies with 14 CCR Section 17409.5.8 shall be determined by the facility’s EA (as 608
defined in 14 CCR Section 17402(a)(5)). For convenience, and without limiting the foregoing, the 609
text of 14 CCR Section 17409.5.8 as it exists on the date hereof is as set forth in Section 4.1.D 610
above. 611
E. Alternative Processing Facility. If Contractor is unable to Process Organic Materials at the 612
Approved Organic Materials Processing Facility due to an emergency or sudden and unforeseen 613
closure of the Processing Facility that is outside the control of Contractor and as provided in 614
Section 10.7, Contractor may use an alternative Processing Facility provided that Contractor 615
provides written notice to the City Contract Manager within forty-eight (48) hours after 616
Contractor becomes aware of such emergency or sudden and unforeseen closure. Pursuant to 617
Exhibit D, the notification shall include the following: (i) name of the applicable Approved Organic 618
Materials Processing Facility; (ii) the Recycling and Disposal Reporting System Number of the 619
Approved Organic Materials Processing Facility; (iii) the date the Approved Organic Materials 620
Processing Facility became unable to Process Organic Materials; (iv) description of the emergency 621
or unforeseen closure; (v) the period of time Contractor anticipates the temporary inability of the 622
Approved Organic Materials Processing Facility to Process Organic Materials; and (vi) Contractor’s 623
proposed action plan to deliver materials to an alternative Processing Facility for Processing or 624
Contractor’s request for waiver to Transport the Organic Materials to the Designated Disposal 625
Facility for Disposal on a temporary basis. 626
Upon receipt of notification by Contractor, the City shall evaluate the notification and determine 627
if the City shall require Contractor to use an alternative Processing Facility or allow Contractor to 628
December 3, 2020 -17- City of Cupertino/Recology Franchise Agreement
Transport the Organic Materials to the Designated Disposal Facility for Disposal on a temporary 629
basis for a time period specified by the City. The City shall notify Contractor of its requirement 630
that Contractor use an alternative Processing Facility for Processing or use the Designated 631
Disposal Facility for Disposal, and the period of time that the City will allow the Organic Materials 632
to be redirected. Pursuant to 14 CCR Section 18984.13, the approved Disposal period shall not 633
exceed ninety (90) days after the date the Approved Organic Materials Processing Facility’s 634
emergency or unforeseen closure commenced, without prior receipt of written permission from 635
the City Contract Manager. 636
If the use of the proposed alternative Processing Facility is anticipated to, or actually does, exceed 637
thirty (30) days in a consecutive twelve (12) month period, the use of such alternative Processing 638
Facility shall be subject to approval by the City Contract Manager. The City Contract Manager may, 639
in their sole discretion, approve, conditionally approve, temporarily approve, or disapprove of the 640
use of the proposed alternative Processing Facility. In the event that the City disapproves the use 641
of the proposed alternative Processing Facility, the Parties shall meet and confer to determine an 642
acceptable alternative Processing Facility. 643
As appropriate for the type of Organic Materials to be delivered to the alternative Organic 644
Materials Processing Facility, the alternative Organic Materials Processing Facility shall meet the 645
applicable facility standards in this Agreement, and the Organic Materials shall thereafter be sent 646
to: (i) an allowable facility, operation, or used for an activity specified by pursuant to 14 CCR 647
Section 18983.1(b) and not subsequently sent to landfill Disposal; (ii) a Transfer Facility; or, (iii) a 648
Disposal Facility. 649
In the event that a change in the Processing Facility results in increased costs, the City may identify 650
and direct Contractor to an alternative Processing Facility that results in less cost than Contractor-651
identified alternative. 652
Contractor shall be entitled to recover any actual, additional, and demonstrable direct costs (not 653
including overhead or profit) incurred to use an alternative Processing Facility under the 654
circumstances described in this section, as an “other adjustment” in the next annual Rate 655
adjustment. 656
Except for the emergency conditions described in this section, Contractor shall not change its 657
selection of the Approved Organic Materials Processing Facility without the City’s written 658
approval, which may be withheld in the City’s sole discretion. If Contractor proposes to use an 659
Organic Materials Processing Facility that is different than the Approved Organic Materials 660
Processing Facility, it shall request written approval from the City Contract Manager, which it may 661
grant at its discretion, at least sixty (60) calendar days prior to use of the Processing Facility and 662
obtain City’s written approval no later than ten (10) calendar days prior to use of the Processing 663
Facility. 664
F. Separate Handling Requirements. In accordance with 14 CCR Section 17409.5.6, Contractor shall 665
keep Organic Materials separate from other Discarded Material streams and shall Process the 666
materials separately from other Discarded Material streams. 667
G. Marketing. Contractor shall be responsible for ensuring that the Approved Organic Materials 668
Processing Facility markets Compost, Mulch, or other products produced from Organic Materials 669
Collected under this Agreement, in a manner that is fully compliant with the requirements of this 670
December 3, 2020 -18- City of Cupertino/Recology Franchise Agreement
Agreement. Contractor’s marketing strategy shall promote the highest and best use of materials 671
presented in the waste management hierarchy established by AB 939. Where practical, the 672
marketing strategy should include use of local markets for such products. 673
H. Residue Disposal. Residue from the Processing of Organic Materials Collected under this 674
Agreement at the Approved Organic Materials Processing Facility, which cannot be marketed, 675
shall be Disposed of by Contractor, or the Processing Facility Subcontractor, or used as ADC or AIC 676
(in which case such Residue shall be considered as Disposed). Residue delivered for Disposal shall 677
not include any Excluded Waste. 678
4.3 SOLID WASTE 679
A. Collection. Contractor shall provide Solid Waste Collection services, as described in Exhibit B, for 680
direct Transport to the Designated Disposal Facility. 681
Contractor acknowledges that the City is committed to Diverting materials from Disposal through 682
the implementation of source reduction, Reuse, Recycling, Composting, and other programs, and 683
that the City may implement new programs, with or without the involvement of Contractor, that 684
may impact the overall quantity or composition of Solid Waste to be Collected by Contractor. 685
Contractor shall not be entitled to any compensation or other relief resulting from a change in 686
Solid Waste volumes or Tonnage or from a change in the composition of Solid Waste. 687
B. Transfer. In the event the City directs Contractor to use a Designated Disposal Facility as provided 688
in Section 3.2, the Parties will meet and confer, and the City will determine if Transfer will be less 689
expensive than direct Transport to the Designated Disposal Facility. The City will base its 690
determination on a comparison of the incremental added cost of direct Transport above the 691
agreed distance threshold as described in Exhibit G2, to the cost of Transfer including the Transfer 692
tip fee and hourly Transport costs provided in Exhibit G2, as escalated. If the City requires 693
Contractor provide for Transfer, Contractor shall Transport Solid Waste from the Route to the 694
Approved Transfer Facility, at which Contractor shall unload Solid Waste from Collection vehicles 695
and load Solid Waste into large-capacity vehicles and Transport such material to the Designated 696
Disposal Facility. 697
Contractor shall keep or cause its Subcontractor to keep all existing permits and approvals 698
necessary for use and operation of the Approved Transfer Facility under the terms of this 699
Agreement. Upon request, Contractor shall provide copies of facility permits and/or notices of 700
violations (obtained from its Transfer Facility Subcontractor if necessary) to the City Contract 701
Manager. If Contractor is unable to use or operate the Approved Transfer Facility, then Contractor 702
shall be responsible for making other Transportation arrangements. In such event, Contractor 703
shall not be compensated for any additional costs, unless Contractor’s inability to use or operate 704
the Approved Transfer Facility was due to a Force Majeure Event, in which case Contractor shall 705
be entitled to recover any additional costs as an “other adjustment” in the next annual Rate 706
adjustment. If Contractor plans to change its Transfer method, Contractor shall obtain written 707
approval from the City prior to making the change. 708
C. Disposal. Contractor shall Transport and deliver all Solid Waste Collected in the City to the 709
Designated Disposal Facility. All costs associated with Transporting to and Disposing of such Solid 710
Waste at the Designated Disposal Facility including payment of any gate fees charged at the 711
December 3, 2020 -19- City of Cupertino/Recology Franchise Agreement
Designated Disposal Facility shall be paid by Contractor. Contractor shall observe and comply with 712
all regulations in effect at the Designated Disposal Facility and cooperate with and take direction 713
from the operator thereof with respect to delivery of Solid Waste. In the event that the 714
regulations, requirements, or policies of the Designated Disposal Facility are in conflict with the 715
requirements of this Agreement, the requirements of this Agreement shall supersede the 716
regulations in effect at the facility with respect to Contractor’s obligations to perform under this 717
Agreement. 718
4.4 ON-CALL, BULKY ITEM, BIN-BY-THE-DAY, AND CITY-WIDE RECYCLING 719
COLLECTION EVENTS 720
Contractor shall provide On-Call, Bulky Item, Bin-by-the-Day, and City-wide Recycling event Collection 721
services as described in Exhibit B and direct Transport to the Approved Processing Facility. City-wide 722
Recycling events (Environmental Days) Collection services shall be provided four (4) times per year, as 723
approved by the City Contract Manager, pursuant to Exhibit B4, Section 3. Contractor shall Transport all 724
On-Call materials, Bulky Items, Bin-by-the-Day material, and City-wide Recycling event materials Collected 725
under this Agreement to the Approved Processing Facility. Except as otherwise specified Contractor shall 726
pay all costs associated with Transporting and Processing On-Call materials, Bulky Items, City-wide 727
Recycling event materials, Environmental Days materials, and Bin-by-the-Day material. Contractor shall 728
observe and comply with all regulations in effect at the Approved Processing Facility and cooperate with 729
and take direction from the operator thereof with respect to delivery of On-Call materials, Bulky Items, 730
Bin-by-the-Day material, and/or City-wide Recycling event material. Notwithstanding any other provision 731
of this Agreement, Contractor shall not be required to provide more than thirty-five (35) On-Call or Bulky 732
Item Collections per Working Day. Subject to that constraint, Contractor shall schedule On-Call and Bulky 733
Item Collections at the earliest Working Day acceptable to the Customer. On-Call and Bulky Item 734
Collections may occur on any Working Day. 735
4.5 C&D COLLECTION 736
Contractor shall provide C&D Collection services as described in Exhibit B for direct Transport to the 737
Designated C&D Processing Facility. 738
A. C&D Recycling Requirements. Contractor shall comply with the following requirements: 739
1. Comply with the City’s Construction and Demolition Debris ordinances and regulations. 740
2. Educate C&D Customers on the requirement to Source Separate Organic Materials generated 741
during construction and demolition projects and have them Collected separately from other 742
C&D and Transported for Processing to an Approved Facility. 743
3. Cause any C&D Processor that is a Subcontractor (including Affiliates) of Contractor to comply 744
with CalRecycle and California Building Standards Code including Part 11 California Green 745
Building Standards Code (CALGreen) requirements for the Processing and Recycling of C&D 746
including Organic Waste. 747
4. Provide in-person site visits at large C&D Collection Sites within the City to train staff on 748
proper sorting for C&D Containers to assist them in achieving Diversion targets as required by 749
California Building Standards Code Part 11 California Green Building Standards Code 750
(CALGreen) requirements. 751
December 3, 2020 -20- City of Cupertino/Recology Franchise Agreement
B. Transfer. In the event the City directs Contractor to use a Designated C&D Processing Facility as 752
provided in Section 3.2, the Parties will meet and confer, and the City will determine if Transfer 753
will be less expensive than direct Transport to the Designated C&D Processing Facility. The City 754
will base its determination on a comparison of the incremental added cost of direct Transport 755
above the agreed distance threshold as described in Exhibit G2, to the cost of Transfer including 756
the Transfer tip fee and hourly Transport costs provided in Exhibit G2, as escalated. If the City 757
requires Contractor provide for Transfer, Contractor shall Transport C&D material from the Route 758
to the Approved Transfer Facility, at which Contractor shall unload C&D material from Collection 759
vehicles and load C&D material into large-capacity vehicles and Transport such material to the 760
Designated C&D Processing Facility. 761
Contractor shall keep or cause its Subcontractor to keep all existing permits and approvals 762
necessary for use and operation of the Approved Transfer Facility under the terms of this 763
Agreement. Upon request, Contractor shall provide copies of facility permits and/or notices of 764
violations (obtained from its Transfer Facility Subcontractor if necessary) to the City Contract 765
Manager. If Contractor is unable to use or operate the Approved Transfer Facility, then Contractor 766
shall be responsible for making other Transportation arrangements. In such event, Contractor 767
shall not be compensated for any additional costs, unless Contractor’s inability to use or operate 768
the Approved Transfer Facility was due to a Force Majeure Event, in which case Contractor shall 769
be entitled to recover any additional costs as an “other adjustment” in the next annual Rate 770
adjustment. If Contractor plans to change its Transfer method, Contractor shall obtain written 771
approval from the City prior to making the change. 772
4.6 SPECIAL EVENTS 773
Contractor shall provide Recyclable Materials, Organic Materials, and Solid Waste Collection services for 774
up to eight (8) one-day City-sponsored or hosted special events, examples of which are identified in Exhibit 775
B5, per Rate Period at no cost to the event or the City. The City Contract Manager shall provide Contractor 776
thirty (30) calendar days' advanced notice of the date, time, and location of each of the eight (8) City-777
sponsored or hosted special events. The City Contract Manager or other parties may, with thirty (30) 778
calendar days' advanced notice, request Contractor provide services at additional events, in which case 779
Contractor may charge for such service consistent with the applicable Rate(s). Contractor shall provide 780
the special event services to additional City-sponsored special events upon thirty (30) calendar days’ 781
advance written request by the City Contract Manager to Contractor, in accordance with Exhibit B5. 782
Special event services include: 783
A. Event Collection Stations. Contractor shall provide and set-up event Collection stations for 784
Collection of Recyclable Materials, Organic Materials, and Solid Waste at City-sponsored special 785
events. Each event Collection station shall include a separate Container for each of Recyclable 786
Materials, Organic Materials, and Solid Waste, as appropriate. Contractor shall provide a sufficient 787
number of event Collection stations of sufficient capacity to meet the needs of the event as 788
determined by Contractor in cooperation with the event organizer. Contractor shall provide 789
liners/bags for the Containers at the Collection stations if needed and shall line the Containers as 790
a part of the station set-up. Collection stations shall include adequate signs and labeling approved 791
by the City. 792
B. Collection Station Monitors. Upon request, Contractor shall provide the number of Collection 793
station monitors who shall be present for the duration of each special event that are necessary to 794
December 3, 2020 -21- City of Cupertino/Recology Franchise Agreement
ensure consistent provision of high quality service. Contractor shall require Collection station 795
monitors to monitor event Collection stations and educate event attendees and vendors about 796
what materials are acceptable in each Collection station Container. The station monitors shall be 797
responsible for removing full bags, re-lining event Containers, and Transporting materials 798
contained in event Collection stations to Drop Boxes or trash enclosures, which will subsequently 799
be Collected by Contractor. Station monitors will also sort materials both at the Collection 800
stations and at the Drop Boxes or trash enclosures to ensure that they are properly separated. 801
C. Containers. Contractor shall provide Containers for the aggregation of material removed from 802
event Collection stations during the course of the event, which may include Drop Boxes. 803
Contractor shall provide Containers in sufficient number of appropriate type(s) for the needs of 804
the event as determined by Contractor in cooperation with the event organizer. Contractor shall 805
service Containers, as agreed-upon with the event organizer, and deliver Collected materials to 806
the appropriate Approved Facility for Processing and/or Disposal. 807
D. Public Education Booth. Upon request of either the City Contract Manager or the event organizer, 808
Contractor shall staff a booth or exhibit at the event for the purpose of educating the public about 809
the services and programs provided by Contractor under this Agreement and the benefits of and 810
opportunities for source reduction, Reuse, Recycling, and Composting. 811
E. Reporting. Within fourteen (14) calendar days after the event, Contractor shall submit a report 812
to the City Contract Manager and event organizer. The report should include, at a minimum: the 813
number of event Collection stations deployed at the event, the number of Collection station 814
monitors, the Tonnage of each material type (i.e., Recyclable Materials, Organic Materials, and 815
Solid Waste) or an estimate based on observed and documented volume Collected, and a 816
description of the public education provided at the event. 817
F. Edible Food Recovery. The City may implement Edible Food Recovery efforts at special events. In 818
the event that such efforts are initiated at an event being serviced by Contractor, Contractor shall 819
support the recovery of Edible Food from special events in accordance with Section 4.15, or 820
otherwise assist the City as reasonably requested. 821
Contractor may, at its sole discretion and expense, coordinate with local youth, community, or charitable 822
organizations to provide some or all of the required services. Regardless of Contractor’s use of such an 823
organization, Contractor shall be responsible for ensuring that service is provided to the Customer in a 824
professional and timely manner consistent with the terms of this Agreement. 825
For special events that are not identified in Exhibit B5 or otherwise hosted or sponsored by the City, and 826
are that are otherwise not subject to the requirements of the Agreement, Contractor shall provide the 827
above-described special event services at the request of the event organizer and may negotiate the 828
charges for such services with the event organizer based on the specific needs of the event. 829
4.7 PUBLIC EDUCATION AND OUTREACH 830
In general, Contractor shall provide public education and outreach efforts as described in Exhibit C. 831
A. Program Objectives. The City intends to be responsible for overseeing the design, production, 832
distribution, and implementation of a public education and outreach program. Contractor shall 833
be responsible for the printing and distribution of City-approved materials under this program in 834
December 3, 2020 -22- City of Cupertino/Recology Franchise Agreement
accordance with this Agreement and pay all costs associated therewith to the extent specified in 835
this Agreement. The City’s public education and outreach strategy shall focus on improving 836
Generator understanding of the benefits of and opportunities for source reduction, Reuse, 837
Recycling, and Composting and landfill Disposal reduction and supporting compliance with 838
Applicable Laws, including, but not limited to AB 939, AB 341, AB 1826, and SB 1383. 839
In general, the City-provided public education and outreach aims to: (i) inform Generators about 840
the services that are provided under this Agreement with specific focus on describing the methods 841
and benefits of source reduction, Reuse, Recycling, and Composting; (ii) instruct Generators on 842
the proper method for placing materials in Containers for Collection and setting Containers out 843
for Collection, with specific focus on minimizing contamination of Recyclable Materials and 844
Organic Materials; (iii) clearly define Excluded Waste and educate Generators about the hazards 845
of such materials and their opportunities for proper handling; (iv) discourage Generators from 846
buying products if the product and its packaging are not readily Reusable, Recyclable, or 847
Compostable; (v) inform Generators subject to Food Recovery requirements under SB 1383 of 848
their obligation to recover Edible Food and actions they can take to prevent the creation of Food 849
Waste; (vi) encourage the use of Compost and recovered Organic Waste products; and, (vii) 850
encourage Generators to purchase products/packaging made with Recycled content materials. 851
The cumulative intended effect of these efforts is to reduce generation of Solid Waste and, 852
ultimately, Disposal of Solid Waste by each Generator in the City, and Contractor agrees to 853
support and not undermine or interfere with such efforts. 854
B. Contractor Public Education Requirements and Support for City Educational Efforts. Contractor 855
shall print and distribute the City-approved educational materials and conduct outreach, as 856
indicated in Exhibit C. Upon City request, Contractor shall review and comment on the materials 857
within five (5) Working Days after receipt of such request. 858
Contractor acknowledges that it is part of a multi-party effort to operate and educate the public 859
about the regional integrated waste management system. Contractor shall cooperate and 860
coordinate with the City Contract Manager on public education activities to minimize duplicative, 861
inconsistent, or inappropriately timed education campaigns and to ensure that public education 862
and outreach to City residents and businesses is consistent in content, format, and delivery. City-863
developed outreach materials may be provided to Contractor in non-English languages in 864
response to: shifting demographics within the City; updates to State requirements or Applicable 865
Law; or, any other reason deemed appropriate by the City. 866
Contractor shall obtain approval from the City Contract Manager on all Contractor-provided 867
advertising, promotional, or service-related materials used within the City before publication, 868
distribution, and/or release. The City Contract Manager, in their reasonable discretion, shall have 869
the right to deny the use of any materials or content or may request that Contractor include the 870
City identification and contact information on materials and Contractor’s approval of such 871
requests shall not be unreasonably withheld. 872
C. Contractor Website. Contractor shall maintain a website in accordance with Section 4.10.1.C. 873
D. Provision of Notices to Non-Compliant Entities. Contractor shall provide notices to non-874
compliant entities under this Agreement, in accordance with Section 4.10.3. 875
December 3, 2020 -23- City of Cupertino/Recology Franchise Agreement
E. Education Materials for Generators. Contractor shall provide all Generators with the City-876
approved public education materials in accordance with Exhibit C (Public Education and Outreach 877
Requirements). 878
F. Education Materials for Commercial Business Owners and Tenants. Contractor shall provide 879
Commercial business owners and Multi-Family property Owners/managers with the City-880
approved public education materials in accordance with Exhibit C (Public Education and Outreach 881
Requirements). 882
G. Education Requirements for Commercial Edible Food Generators. Contractor shall provide 883
Commercial Edible Food Generators with the City-approved educational materials in accordance 884
with Exhibit C (Public Education and Outreach Requirements). 885
H. Food Recovery Organizations and Food Recovery Services Online List. Contractor shall post on 886
its website an online list of Food Recovery Organizations and Food Recovery Services in 887
accordance with Exhibit C. 888
I. Support of City, County, State, and Federal Policy. City and Contractor shall meet and confer 889
regarding future extended producer responsibility (EPR) initiatives that are of interest to the City, 890
and shall cooperate in good faith to support such initiatives as mutually agreed. 891
J. Record Keeping and Reporting Requirements. Contractor shall comply with the public education 892
and outreach record keeping and reporting requirements of Article 6 and Exhibit D. 893
K. Waste Zero Specialist. Contractor shall provide the City with a Waste Zero Specialist in accordance 894
with Section 5.7.D and Exhibit C. 895
Sections 4.7.C-H and 4.7.J-K above are intended as cross-references only. In the event of any conflict 896
between the above Sections and the cross-referenced Sections, the latter shall govern. 897
4.8 TECHNICAL ASSISTANCE 898
A. General. Provision of Generator technical assistance is a key element in successful 899
implementation of SB 1383 compliance requirements. It is the City’s expectation that Contractor, 900
the Subcontractor(s) hired pursuant to Section 4.8.B (if any), and the City shall work in close 901
coordination to provide Generator technical assistance which includes in-person site visits and 902
assessments to each Commercial and Multi-Family account. Contractor staff shall not provide 903
Generator technical assistance without prior City training, or City-approved training by 904
Subcontractor(s) provided under Section 4.8.B, provided such training is provided at no cost to 905
Contractor, and initial training is provided before the Commencement Date. Technical assistance 906
training provided by City may include, but may not be limited to, review of SB 1383 requirements, 907
Generator requirements described under this Agreement, Municipal Code provisions, and best 908
practices for communication with Customers. 909
B. Coordination with City and Third Parties. By or before July 1, 2021, the City and Contractor shall 910
confer regarding use of a third party(ies) for provision of technical assistance in support of AB 911
1826 and SB 1383 compliance. The scope of work may also include assistance with SB 1383 912
compliance reviews as provided in Section 4.8.C, Route reviews, and additional activities or 913
assistance as needed. 914
December 3, 2020 -24- City of Cupertino/Recology Franchise Agreement
C. SB 1383 Initial On-Site Compliance Reviews. Beginning on the Commencement Date, Contractor 915
shall conduct an SB 1383 assessment for each Multi-Family and Commercial Customer within the 916
City. Contractor shall follow the compliance review protocol provided in Section 4.14.B as well as 917
noticing procedures provided in Section 4.10.3. During Contractor’s interaction with Customer to 918
establish new service to each new Multi-Family and Commercial Customer, Contractor shall 919
conduct a compliance reviews for SB 1383. The assessment shall identify requirements for the 920
regulated entity to subscribe for Collection service under SB 1383 and assess the current level of 921
compliance with those requirements. Contractor shall identify opportunities for reduced Disposal 922
of Recyclable Materials and Organic Materials, including source reduction and Edible Food 923
Recovery. 924
D. SB 1383 Ongoing On-Site Compliance Reviews Beginning July 1, 2022, and annually thereafter, 925
Contractor shall confer with the City Contract Manager, and shall visit some or all non-waived 926
Generators identified by Contractor during the compliance review process described in Section 927
4.14.A.2 that appear required to enroll in Collection service pursuant to the City Municipal Code 928
but are not subscribed for Recyclable Materials and Organic Materials Collection Service. If the 929
Generator is not subscribed for both services, Contractor’s representative shall attempt to resolve 930
any logistical barriers to compliance with City’s Collection service requirements and assist the 931
Generators with selecting appropriate Service Levels for Discarded Materials. If Contractor is 932
unable to subscribe said Generators to Discarded Materials Collection Services, Contractor shall 933
submit to City monthly a list of said Generators in accordance with Exhibit D. Contractor shall 934
provide ongoing, on-site training for: (i) Commercial Generators’ staff regarding SB 1383 935
requirements, including, but not limited to: management, kitchen staff, service employees, and 936
janitorial staff; and, (ii) Multi-Family Customers’ staff, including but not limited to: the property 937
manager, janitorial staff, maintenance, and any other on-site staff members or contractors that 938
handle Discarded Materials. 939
940
Notwithstanding any other provision of this Agreement, Contractor shall not be deemed to have 941
breached any obligation to provide on-site or in-person services at Customer or Generator 942
Premises (e.g. compliance reviews, technical assistance, inspections), if the Customer or 943
Generator refuses or is non-responsive to Contractor’s attempts to provide the service, provided 944
that Contractor makes multiple attempts to contact the Customer or Generator (including in 945
writing and by either phone or email if available), documents such attempts and the Customer or 946
Generator’s response (if any), and makes such documentation available to City upon request. 947
4.9 BILLING 948
Contractor may bill all Customers and shall be solely responsible for collecting billings at Rates not to 949
exceed those set in accordance with Article 8. Billing shall be performed on the basis of services rendered 950
and this Agreement shall create no obligation on the part of an y Person on the sole basis of the Ownership 951
of property. Individual contracts between Contractor and a Customer for services provided under this 952
Agreement shall be prohibited. 953
Contractor shall bill all Single-Family Customers quarterly for services provided. Contractor shall bill Single-954
Family Customers not earlier than one (1) month nor later than two (2) months into each quarterly billing 955
cycle. Contractor shall bill all Commercial and Multi-Family Customers for scheduled and regularly 956
recurring services on a monthly basis in arrears. Contractor shall bill Commercial and Multi-Family 957
Customers for any on-call and/or non-recurring services no more frequently than monthly and may only 958
December 3, 2020 -25- City of Cupertino/Recology Franchise Agreement
bill for services provided during the previous month. As the Rate Period begins in February, quarterly 959
billing shall be as follows (February-March-April, -May-June-July, August-September-October, November-960
December-January). 961
Contractor shall make the low income Rate available to qualified Single-Family Customers. To qualify, the 962
Customer must: (a) live in a Single-Family Dwelling Unit that is billed separately (not combined with any 963
other Dwelling Unit); and (b) provide Contractor with a copy of the Customer’s PG&E bill (or other suitable 964
documentation of a type approved in advance by City) verifying that the Customer is enrolled in PG&E’s 965
CARE Program. Contractor may verify eligibility of Customers receiving the low income Rate annually, and 966
shall verify their eligibility at least once every five (5) years. Customers may also be required to promptly 967
notify Contractor if they are no longer enrolled in the CARE Program. If PG&E’s CARE program is 968
discontinued or materially changed, the Parties shall negotiate in good faith to determine substitute 969
eligibility criteria and related verification methods that reflect CARE program eligibility requirements 970
before the discontinuation or change. 971
Contractor shall develop and maintain a database of Customer contact information, which shall include 972
an email address for each Customer account, excluding email addresses for Customers who do not provide 973
or specifically decline to provide such information. Contractor shall maintain, and make such database 974
available upon request from the City Contract Manager, in accordance with Section 6.1. 975
Contractor shall bill Customers electronically using paperless invoices as the default billing method, 976
however Contractor shall bill Customers who decline paperless billing or are otherwise unable to provide 977
email contact information by standard mail, using standard (paper) invoices. Contractor’s website shall 978
allow Customers to pay their bill(s) electronically. Contractor shall permit Customers the ability to pay 979
their bills through an electronic check or credit card and include the ability for Customer billings to be 980
automatically charged on a recurring basis. Contractor shall prepare, mail, and collect bills from Customers 981
who decline to use such internet-based billing system. Contractor shall make arrangements to allow such 982
Customers to pay bills by cash, check, electronic check, money order, and credit card. 983
Contractor shall provide Customers with bill inserts in accordance with Exhibit C. 984
Contractor shall maintain copies of all billings and receipts, each in chronological order, for the Term of 985
this Agreement, for inspection and verification by the City Contract Manager at any reasonable time but 986
in no case more than thirty (30) calendar days after receiving a request to do so. 987
Contractor shall be responsible for collection of payment from Customers with past due accounts (“bad 988
debt”). Contractor’s efforts to obtain payment from delinquent accounts shall include the notice 989
requirements of this Section 4.9, and thereafter may include any other measures consistent with law 990
regulating the collection of debts. 991
Quarterly Customer invoices shall be due sixty (60) calendar days after the invoice date. Monthly 992
Customer invoices shall be issued in the month following the billing period, and shall be due thirty (30) 993
calendar days after the invoice date. In the event that any account becomes more than ten (10) calendar 994
days past due, Contractor shall notify such Customer of the delinquency via written correspondence, 995
instructing the Customer that unpaid bills that become more than forty-five (45) calendar days past due 996
may be assessed a one and one half percent (1.5%) late fee per month. Contractor shall provide a second 997
written notice of delinquency to Customer on any account that becomes more than sixty (60) calendar 998
days past due, and a third written notice of delinquency to any account that becomes more than ninety 999
(90) calendar days past due. The ninety (90) day delinquency notice shall be sent to the Property Owner 1000
December 3, 2020 -26- City of Cupertino/Recology Franchise Agreement
as well as the Customer if those are different. Should any acco unt become more than ninety (90) calendar 1001
days past due, Contractor shall notify the City Contract Manager of the address, service level, service 1002
frequency, and delinquent billing amount at which point City may take action to enforce Municipal Code 1003
provisions relating to subscription and use of Collection service. Contractor may stop service to any 1004
account that is over one hundred twenty (120) days past due, and shall not be required to restart service 1005
until all amounts due are paid in full. Upon payment in full of the previously delinquent account, 1006
Contractor may require a deposit from the Customer not to exceed one (1) month’s billings at the 1007
Customer’s Service Level. Contractor shall provide reports documenting past due accounts in accordance 1008
with Exhibit D. 1009
If Contractor fails to invoice a Customer, or otherwise under-charges a Customer for services provided for 1010
more than six (6) months, Contractor may not subsequently attempt to collect the under-charged amount 1011
for more than six (6) months of service. If Contractor over-charges a Customer, Contractor shall reimburse 1012
or credit the Customer for the overcharges. This Agreement also does not prohibit Contractor from 1013
reimbursing or crediting a Customer for more than six (6) months of overcharges. 1014
4.10 CUSTOMER SERVICE PROGRAM 1015
4.10.1 Program Requirements 1016
A. Availability of Representatives. Contractor shall maintain an office within thirty (30) miles of City 1017
Hall. A representative of Contractor who is knowledgeable of the service area, services, and Rates 1018
shall be available from 7:30 a.m. to 4:30 p.m. Monday through Friday to communicate with the 1019
public and City representatives by telephone. Contractor shall maintain a local or toll-free 1020
telephone number, which it shall publicize. Contractor shall also maintain an after-hours 1021
telephone number allowing twenty-four (24) hour per day access to Contractor management by 1022
the City Contract Manager in the event of an emergency involving Contractor’s equipment or 1023
services including, but not necessarily limited to, fires, blocked access, or property damage. 1024
B. Telephone. The City shall secure, and Contractor shall use, pay all costs incurred by, and maintain 1025
during the Term of this Agreement, a toll-free phone number with telecommunications device for 1026
the deaf (TDD) capability which shall serve as the primary point of contact between Contractor 1027
and the public during normal business hours. Upon expiration or early termination of this 1028
Agreement, the City shall retain the control of the toll-free phone number. 1029
Contractor shall maintain a telephone system in operation from 7:30 a.m. to 4:30 p.m. and shall 1030
have sufficient equipment in place and staff a representative, or an answering service available to 1031
handle the volume of calls experienced on the busiest days and such telephone equipment shall 1032
be capable of recording the responsiveness to calls. Multilingual assistance for people speaking 1033
the most common non-English language in the City shall be made available, when needed. 1034
Contractor’s telephone system shall offer Customers who have been placed on-hold to opt to 1035
leave a voice message or email, rather than remain on-hold. In the event that Contractor’s 1036
telephone Customer service performance falls below the performance standards established in 1037
Exhibit F, the City Contract Manager may require Contractor to prepare and present a corrective 1038
action plan for achieving those performance standards over the next thirty (30) days. Contractor 1039
shall prepare and submit such a plan to the City Contract Manager within five (5) Business Days 1040
of the City Contract Manger’s request. In the event that Contractor’s Customer service staffing 1041
dedicated to this Agreement is not consistent with the number of staff proposed by Contractor, 1042
December 3, 2020 -27- City of Cupertino/Recology Franchise Agreement
Contractor shall include increased staffing in the corrective action plan. The City Contract 1043
Manager shall review the plan within five (5) Business Days of receipt from Contractor and may 1044
approve or request additional information and modifications to the corrective action plan. Once 1045
approved, Contractor shall be required to implement the corrective action plan and achieve the 1046
performance standards within thirty (30) days. If the performance standards are still not achieved 1047
after this time, City shall have the right to exercise all remedies under the Agreement including, 1048
but not limited to, continued assessment of Liquidated Damages and/or termination of the 1049
Agreement consistent with the provisions of Section 10.1.F. 1050
Recording of Contractor’s responsiveness to calls shall include, at a minimum, all items included 1051
in the “Service Quality and Reliability” and “Customer Service” performance standards listed in 1052
Exhibit F. An answering machine or voicemail service shall record Customer calls and voice 1053
messages between 4:30 p.m. and 7:30 a.m., but shall be available for Customers to leave a 1054
message at all times. Contractor shall provide a live, not automated, call back on the same day to 1055
all Customers who leave voice messages by 4:30 p.m. on Working Day and shall provide a live call 1056
back by noon of the following Working Day for any voice messages left after 4:30 p.m. 1057
C. Web Site, Email Access, and Other Online Customer Engagement. Contractor shall develop and 1058
maintain a website that is accessible by the public and solely dedicated to the operations under 1059
this Agreement in the City. Contractor shall post all City-approved, service-related information on 1060
its website and shall review and update service-related information at least once per quarter or 1061
more frequently as directed by the City Contract Manager. Contractor’s website shall include an 1062
online list of Food Recovery Organizations and Food Recovery Services in accordance with Exhibit 1063
C. Contractor’s website shall additionally include all Rates allowed to be charged under the 1064
Agreement, including Debris Box and Compactor Rates, all public education and outreach 1065
materials produced and distributed under this Agreement, and provide the public the ability to e-1066
mail Contractor questions, service requests, including starting service, changing or stopping 1067
existing service, and requesting On-Call, Bulky Item and Bin-by-the-Day Collection service, and/or 1068
Complaints. Contractor shall respond the same day to all Customers who leave e-mail messages 1069
by 4:30 p.m. on a Working Day and shall respond by noon of the following Working Day for any e-1070
mail messages left after 4:30 p.m. Contractor may respond to Customer e-mails either via e-mail 1071
or phone. Substantive changes to the website shall be pre-approved by the City, and changes 1072
requested by the City shall be made within four (4) hours of the City’s request. 1073
D. Contractor’s “Commitment to Customer” Platform. Contractor has proposed to implement a 1074
software system that is intended to provide more robust tracking of Customer account and service 1075
data, including Complaints. Contractor anticipates implementing such system by January 1, 2023. 1076
At least six (6) months prior to Contractor’s implementation of such system in the City, Contractor 1077
shall meet with the City Contract Manager to demonstrate the features, options, and benefits of 1078
the system as well as to provide work flows to the City related to how this system may impact 1079
other interactions between the City, the Contractor, and Customers. Contractor shall also, at their 1080
sole expense, coordinate with the City’s third party software vendor responsible for the cloud-1081
based Generator and SB 1383 data monitoring and reporting to ensure that data can be efficiently 1082
and accurately transferred between the Contractor’s proposed system and the City-designated 1083
system. In the event that Contractor is unable to successfully transfer data at the frequency and 1084
quality required by the City, Contractor shall be responsible for primary entry of data into the 1085
City’s designated system even if doing so would require double-entry by Contractor. Contractor 1086
has included a cost of one hundred eighteen thousand eight hundred twenty-seven dollars 1087
December 3, 2020 -28- City of Cupertino/Recology Franchise Agreement
($118,827) per year in Contractor’s Proposal for such software system. If the system has not been 1088
fully implemented by January 1, 2024, or equivalent functionality provided, the costs associated 1089
with such system shall not be allowed to be included in Contractor’s forecasted operating 1090
expenses for Rate Period Four onwards, until the system has been implemented or equivalent 1091
functionality provided. For any Rate Period in which Contractor is unable to include such costs in 1092
forecasted operating expenses, it shall be Contractor’s burden to demonstrate that any corporate 1093
overhead, information technology costs, or other broad category of expenses presented as 1094
allowable for Rate Period Four onwards exclude any costs associated therewith. 1095
4.10.2 Service Requests, Complaints 1096
Contractor shall be responsible for the prompt and courteous attention to, and prompt and reasonable 1097
resolution of, all Customer service requests and Complaints. Contractor shall record, in its computer 1098
system or a separate log all Complaints, noting the name and address of Complainant, date and time of 1099
Complaint, nature of Complaint, and nature and date of resolution. The data fields collected in such 1100
system or separate log shall be approved by the City Contract Manager. Contractor shall retain this 1101
Complaint log consistent with the requirements of Article 6. Contractor shall record and respond to all 1102
Complaints as communicated by the Customer, utilizing a “Customer is always right” approach, shall not 1103
challenge or dispute the Customer’s assertions or Complaints, and shall at all times prioritize Customer 1104
satisfaction. Upon request by the City Contract Manager, Contractor shall compile and submit a summary 1105
of the Complaint log. 1106
Contractor shall respond to all Complaints received in accordance with the requirements of this 1107
Agreement. Complaints related to missed or incomplete Collections shall be addressed in accordance with 1108
Section 4.10.3. Complaints related to repair or replacement of Carts or Bins shall be addressed in 1109
accordance with Section 5.6. 1110
4.10.3 Missed Collections, Non-Collection, and Courtesy Collection 1111
A. Missed Collection Complaints. When handling Customer Complaints related to missed or 1112
incomplete Collections, Contractor shall not question or contest the Customer’s claim that the 1113
Collection was missed or incomplete, even in cases where the Route driver recorded the 1114
Container(s) in question as already “Collected” or “not out”, subject to the limitations of Section 1115
4.10.3.F. Missed Collections, regardless of nature, shall be recorded and reported in accordance 1116
with Exhibit D. 1117
B. Schedule for Resolution. Contractor shall resolve each and every Customer Complaint of a missed 1118
or incomplete Collection by returning to the Customer address and completing the Collection as 1119
provided in this Section 4.10.3.B. For all Complaints related to missed Collections that are 1120
received before 9:00 a.m. on a Working Day, Contractor shall return to the Customer address and 1121
Collect the missed materials on the same Working Day on which the missed Collection was 1122
reported. For those Complaints related to missed Collections that are received after 9 a.m. on a 1123
Working Day, Contractor shall have until the end of the following Working Day to resolve the 1124
Complaint. Contractor’s failure to comply with this Section 4.10.3 may result in Liquidated 1125
Damages, in accordance with Exhibit F. 1126
Notwithstanding the foregoing, Contractor shall not be required to return and complete a 1127
Collection in response to a Complaint of missed Collection if: (a) Contractor’s driver has left a Non-1128
Collection Notice in accordance with Section 4.10.3.C; or, (b) Contractor’s driver coded the 1129
Customer as “no set-out” (unless in the case of (b) the Customer is eligible for a courtesy 1130
December 3, 2020 -29- City of Cupertino/Recology Franchise Agreement
Collection under Section 4.10.3.F). 1131
C. Non-Collection, Courtesy Noticing. Prior to the Commencement Date, Contractor shall submit to 1132
the City Contract Manager for review and approval: 1133
1. A template Non-Collection Notice, for use in instances of acceptable non-Collection of 1134
Discarded Materials, and instances in which Prohibited Container Contaminants are observed 1135
by Contractor. Template should be in printable format as well as digital format for the 1136
purposes of digitally communicating the information. 1137
2. A template Courtesy Notice, for use in instances of improper set-out of Discarded Materials, 1138
and/or instances in which Prohibited Container Contaminants are observed by Contractor, 1139
which Contractor, at its sole option, elects to Collect as a co urtesy to the Customer. Template 1140
should be in printable format as well as digital format for the purposes of digitally 1141
communicating the information. 1142
The Non-Collection Notice shall, at a minimum: (i) inform the Customer of the reason(s) for non-1143
Collection; (ii) include the date and time the notice was left; (iii) include information on proper 1144
Disposal of Excluded Waste; and, (iv) describe the Rate to Customer for Contractor to return and 1145
Collect the Container after Customer removes the contamination, if applicable. In addition, the 1146
notices shall inform the Customer that Contractor may charge Customer the Rate for such 1147
contamination Processing fee(s). 1148
The Courtesy Notice shall, at a minimum: (i) inform the Customer of improper setout of Discarded 1149
Materials and/or the presence of Prohibited Container Contaminants; (ii) include the date and 1150
time of the incident; (iii) include information on the Customer’s requirement to properly set out 1151
Containers and/or separate materials into the appropriate Containers, and the acceptable 1152
materials and Prohibited Container Contaminants for Collection in each Container; (iv) inform the 1153
Customer of the courtesy pick-up of the improperly set out and/or contaminated materials on 1154
this occasion and/or issue a Non-Collection Notice in the future; and, (v) shall include 1155
photographic evidence (if available). In addition, the notice shall inform the Customer that 1156
Contractor may charge Customer the Rate for such contamination Processing fee(s). 1157
The notice may be left attached to or adhered to the Generator’s Container, or at the Premises’ 1158
door or gate, at the time the violation is detected by Contractor, or may be delivered by e-mail or 1159
text message within one (1) Working Day after the incident, so long as a record of such 1160
communication is retained by Contractor for City review upon request. For Non-Collection 1161
Notices to Commercial or Multi-Family Customers, if Contractor does not have the Customer’s 1162
email address, then Contractor may call the Customer and either speak to the Customer or leave 1163
a voice message to describe the reason for non-Collection, and such call will count as a Non-1164
Collection Notice so long as Contractor documents the call in its reports to the City. 1165
D. Non-Collection of Discarded Materials. In the event that Contractor encounters circumstances at 1166
a Customer Premises, including circumstances described in Section 5.3.A, which prevent 1167
Contractor from Collecting Discarded Materials that have been placed for Collection, Contractor 1168
shall provide a Non-Collection Notice clearly explaining Contractor’s reason for refusal to Collect 1169
the Discarded Materials. Such reasons may also include: (i) overweight Containers (Cart weight in 1170
excess of 84 lbs. for 24g, 112 lbs. for 32g, 224 lbs. for 64g, 335 lbs. for 96g; Bin weight in excess 1171
of 1,200 lbs.); (ii) Containers overfilled such that the lid is not flush with the body; and, (iii) inability 1172
December 3, 2020 -30- City of Cupertino/Recology Franchise Agreement
to access Containers. Contractor shall not be required to Collect Discarded Materials that are 1173
reasonably believed to contain Excluded Waste, pursuant to the requirements of Section 5.8. If 1174
Contractor declines to Collect Discarded Materials (including Cardboard overages) that have been 1175
set out, but does not leave a Non-Collection Notice, it shall be considered a Missed Collection per 1176
this Section 4.10.3. 1177
E. Courtesy Collection for Improper Set-Out. In the event that Contractor encounters circumstances 1178
at a Customer Premises that allow for safe Collection of Discar ded Materials, but do not otherwise 1179
reflect proper set-out procedures (including, but not limited to over-full Containers, spills not 1180
caused by Contractor, Carts placed too close together, Carts placed in front of one another, Carts 1181
placed too close to parked cars, but excluding overweight Containers, Contractor shall Collect the 1182
material and may leave a Courtesy Notice at the Customer Premises clearly explaining how the 1183
Customer failed to comply with proper set-out procedures. 1184
Contractor may educate the public on proper set-out procedures designed to maximize the 1185
efficiency of Collection (e.g. Carts spaced two (2) feet apart). However, Contractor acknowledges 1186
that such procedures are not practical in all circumstances and failure of the Customer to follow 1187
such procedures does not constitute a reason for non-Collection if the Discarded Materials may 1188
be safely and reasonably serviced. Contractor’s Route drivers shall dismount their Collection 1189
vehicles and reposition Containers as necessary to provide Collection service. Contractor may not 1190
require a Customer to set out the Customer’s Containers in such a manner that would block 1191
vehicle access to Customer’s driveway. Contractor and Customers may mutually agree to 1192
uncommon service locations if necessary for Collection in specific areas. 1193
F. Courtesy Collections for Admitted Late Set-Outs or Documented No Set-Outs. In the event that 1194
a Customer: (i) reports that their Container(s) were placed for Collection after Contractor’s 1195
Collection vehicle had already passed the Premises for regularly scheduled Collection; or (ii) claims 1196
that Contractor missed the Collection, even though Contractor’s driver coded the Customer as 1197
“no set-out”; and in either case requests that Contractor return and Collect their Containers, 1198
Contractor shall return to the Customer Premises and provide a courtesy Collection at no charge 1199
to the Customer, provided that Contractor is not required to provide more than two (2) courtesy 1200
Collections per Customer per calendar year under this paragraph. For Single-Family Customers, 1201
one (1) courtesy Collection represents Collection of up to three (3) Carts (Recyclable Materials, 1202
Organic Materials, Solid Waste) per incident. Contractor shall complete the courtesy Collection by 1203
the end of the following Working Day. 1204
G. Non-Collection Due to Contamination. Contractor may refuse to Collect a Recyclable Materials 1205
or Organic Materials Container that contains more than ten percent (10%) by volume of 1206
Prohibited Container Contaminants, provided that Contractor leaves a Non-Collection Notice in 1207
accordance with Section 4.10.3.C of this Agreement. Contractor shall instruct the Customer to 1208
either remove the Prohibited Container Contaminants, or pay the Rate to have the contents of 1209
the contaminated Recyclable Materials or Organic Materials Container Collected as Solid Waste. 1210
H. Identification of Excluded Waste. If a Collection vehicle driver observes Excluded Waste in an 1211
uncollected Container, the driver shall affix a Non-Collection Notice to the Container in 1212
accordance with this Section and shall not Collect the Discarded Materials. The Non-Collection 1213
Notice shall list the phone number of a facility that accepts the Excluded Waste or a phone 1214
number of an entity that can provide information on proper Disposal of the Excluded Waste. If a 1215
December 3, 2020 -31- City of Cupertino/Recology Franchise Agreement
Collection vehicle driver observes Excluded Waste, including instances in which the Container 1216
with the Excluded Waste has been Collected, the Collection vehicle driver shall record that 1217
observation, which shall include photographic evidence (if available), in the on-board computer 1218
system (if available) or some other system approved by the City Contract Manager, and 1219
immediately inform their Route supervisor. The Route supervisor shall investigate and initiate 1220
applicable action, including providing immediate notification to the applicable Approved 1221
Facility(ies) and/or Designated Facility(ies). 1222
I. Communications with Customer. Whenever a Container at the Premises of a Commercial or a 1223
Multi-Family Customer is not Collected, Contractor shall contact the Customer on the scheduled 1224
Collection day to explain why the Container was not Collected. Contractor shall contact such 1225
Customers through the application of a Container tag, by electronic communication, or phone 1226
call, provided that if Contractor does not possess an email address or phone number for the 1227
Customer, Contractor may provide a written communication, which shall include a request for an 1228
email address or phone number for future notifications. Whenever a Container is not Collected 1229
because it contains more than ten percent (10%) by volume of Prohibited Container 1230
Contaminants, a Customer service representative shall contact the Customer to discuss, and 1231
encourage the Customer to adopt proper Discarded Materials preparation and separation 1232
procedures. 1233
J. Contractor Return for Collection. Upon request from Customer, Contractor shall Collect 1234
Containers that received Non-Collection Notices within one (1) Working Day after Customer’s 1235
request if the request is made at least two (2) Working Days prior to the regularly scheduled 1236
Collection Day. Contractor may charge Customer the Rate for the special pick-up (“return trip pick-1237
up”) per section 4.10.3 K if Contractor successfully notifies Customer of the Rate for this service 1238
at the time the request is made by Customer. 1239
K. Rates Related to Non-Collection. Contractor may charge the Customer the Rate for a special pick-1240
up if the Customer elects to have their corrected or contaminated Recyclable Materials or Organic 1241
Materials Container serviced before the next regular Collection day. If the Customer chooses to 1242
have their contaminated Recyclable Materials or Organic Materials Container Collected as Solid 1243
Waste, Contractor may charge the Customer the Rate for the special pick-up. 1244
Six (6) months after the Commencement Date, Contractor and the City shall meet and confer to 1245
discuss the establishment of a Rate for contamination fees for Customers that do not properly 1246
sort their Discarded Materials. If the City elects to utilize contamination fees, Contractor shall be 1247
required to utilize the following approach for assessment of contamination fees. If Contractor 1248
observes Prohibited Container Contaminants in a Customer’s Organic Materials Container or 1249
Recyclable Materials Container on more than two (2) consecutive occasions, Contractor may 1250
impose a contamination fee, in the amount specified by the City, and shall notify the City in its 1251
monthly report of Customers for which contamination fees were assessed. Contractor shall leave 1252
a contamination fee notice on the contaminated Containers, describing the specific material(s) of 1253
issue, explaining how to correct future set-outs, and indicating that the Customer will be charged 1254
a contamination fee on its next bill. The format of the contamination fee notice must be approved 1255
by the City Contract Manager. Contractor shall Collect the contaminated Recyclable Materials or 1256
Organic Materials as Solid Waste and Transport the material to the Approved Facility. Upon City 1257
request, the Parties shall review the amount of revenue generated from contamination fees. 1258
December 3, 2020 -32- City of Cupertino/Recology Franchise Agreement
L. Disposal of Prohibited Container Contaminants. If Contractor observes a visible Prohibited 1259
Container Contaminant in a Customer’s Organic Materials Container or Recyclable Materials 1260
Container, Contractor may Dispose of the Container’s contents provided Contractor complies with 1261
the noticing requirements of this Section 4.10.3. 1262
M. Record of Non-Collection. The driver shall record the non-Collection event, in the on-board 1263
computer system (if available), by calling it in to Contractor’s dispatch, by noting it on the Route 1264
sheet, by keeping a “receipt” of the Non-Collection Notice, or through some other process 1265
approved by the City Contract Manager, and the Customer’s computerized account record shall 1266
be updated to note the event. Contractor shall maintain electronic records of all Non-Collection 1267
Notices, listing all taggings, the addresses of the parties involved, the date of the notice, the 1268
reason for the notice, and the date and manner of resolution of each instance. Contractor shall 1269
provide the above detail on a monthly basis as provided in Exhibit D. Contractor shall retain such 1270
records as required by Article 6. 1271
4.11 ACCESS TO CUSTOMER SERVICE AND BILLING SYSTEMS 1272
Contractor shall provide read-only access and any necessary training to one (1) or more City employee(s) 1273
(as designated by the City) regarding the use of Contractor information systems as described in this 1274
Section. Contractor shall designate one (1) member of Contractor staff to work directly with such City 1275
employee. Contractor shall provide such City employee with read-only access to Customer service, call 1276
center, and operations information systems in order to validate Contractor performance standards, and 1277
recommend changes to Customer Service Levels to resolve service issues or otherwise address Customer 1278
needs. Contractor shall also provide access to Customer contact information (including email addresses) 1279
for purposes of City-provided public education and outreach activities. In addition, Contractor shall ensure 1280
that the City Contract Manager and any other City staff, as requested by the City, have read-only access 1281
to all service order, billing, and Customer service records in Contractor’s internal information systems. 1282
Such read-only access is intended to provide the City the ability to review notes related to Customer 1283
service and/or billing issues. 1284
4.12 SERVICE EXEMPTIONS 1285
4.12.1 General Exemptions 1286
The Municipal Code permits certain exemptions from the obligation to subscribe to the Collection service 1287
described herein. For the purposes of this Section 4.12, the term “Generators ” is based on SB 1383 1288
regulatory language and is inclusive of the terms “Customer” and “Generator” as defined in Exhibit A and 1289
as otherwise used in the Agreement. 1290
4.12.2 Generator Waivers 1291
A. General. As of the Effective Date, the City provides a Yard Trimming exemption for Single Family 1292
Customers as provided in Exhibit B1, Section 2. The City, in its sole discretion, may amend the 1293
Municipal Code to provide for additional Generator waivers or exemptions. Such amendments 1294
may allow for waivers to address compliance with SB 1383 requirements, pursuant to 14 CCR 1295
Section 18984.11. 1296
B. Potential SB 1383 Generator Waivers. Should the City amend the Municipal Code to allow SB 1297
1383 Generator waivers, the City may grant de minimis and/or physical space waivers to 1298
December 3, 2020 -33- City of Cupertino/Recology Franchise Agreement
Commercial businesses and/or Multi-Family Generators, and may additionally grant Collection 1299
frequency waivers to Generators pursuant to 14 CCR Section 18984.11. 1300
C. Contractor Review of Waiver Requests. Generators may submit requests for de minimis waivers, 1301
physical space waivers, and Collection frequency waivers to the City, and the City may request 1302
Contractor’s assistance in reviewing such waivers. Upon the request of the City, and subject to 1303
the consent of the Generator, Contractor shall within seven (7) days after receipt of the City’s 1304
request, inspect Generator’s Premises to verify the accuracy of the application. Contractor shall 1305
provide documentation of the inspection, including the date of the inspection, Customer name 1306
and address, a description of the Premises, evaluation of each criterion of the relevant waiver 1307
type, and photographic evidence if consented to by the Generator. Contractor shall send this 1308
information and documentation to the City in a timely manner, not to exceed three (3) days after 1309
the date of inspection. The City ultimately retains the right to approve or deny any application, 1310
regardless of the information provided by Contractor. Contractor shall report information 1311
regarding waivers reviewed within the month, if any, in accordance with Exhibit D. 1312
D. Service Level Updates. When the City grants a waiver to a Customer, or the Customer’s waiver 1313
status changes after a reverification determination, the City shall notify Contractor within seven 1314
(7) days after the waiver approval or status change with information on the Customer and any 1315
changes to Service Level or Collection service requirements for the Customer. Contractor shall 1316
have seven (7) days to modify the Customer’s Service Level, Customer account data, and billing 1317
statement, as needed. 1318
E. Waiver Reverification. The City intends to be responsible for reverification of waivers at a 1319
minimum of once every five (5) years. Upon request of the City, Contractor shall support the City 1320
in this reverification process by providing requested Customer information. In the event that a 1321
waiver status changes, Contractor shall update the Customer’s information and Service Level in 1322
accordance with Section 4.12.2.D above. 1323
4.12.3 Contractor Service Exemptions 1324
A. Disaster Waivers. In the event of a disaster, and subject to the provisions of Exhibit B4, Section 2, 1325
the City may grant Contractor a waiver of some or all Discarded Materials Collection requirements 1326
under this Agreement and 14 CCR, Division 7, Chapter 12, Article 3 in the disaster-affected areas 1327
for the duration of the waiver, provided that such waiver has been approved by CalRecycle. 1328
Contractor Compensation for any resulting changes in Collection requirements shall be addressed 1329
as in accordance with Exhibit E2. 1330
B. Illegal Disposal Sites. Contractor may, but is not required to, separate or recover Organic Waste 1331
that Contractor removes from illegal disposal sites as part of an abatement activity to protect 1332
public health and safety. Contractor shall report the amount of Discarded Materials removed for 1333
Disposal from illegal disposal sites, in accordance with Exhibit D. 1334
C. Quarantined Waste. If approved by the City, Contractor may Dispose of, rather than Process, 1335
specific types of Organic Materials and/or Recyclable Materials that are subject to quarantine due 1336
to spread of pathogens or similar concerns, and meet the requirements described in 14 CCR 1337
Section 18984.13(d) for a period of time specified by the City or until the City provides notice that 1338
the quarantine has been removed and directs Contractor to Transport the materials to the 1339
Approved Facilities for such material. 1340
December 3, 2020 -34- City of Cupertino/Recology Franchise Agreement
In accordance with Article 6 and Exhibit D, Contractor shall maintain records and submit reports 1341
regarding compliance agreements for quarantined Organic Materials and Recyclable Materials 1342
that are Disposed of pursuant to this Section 4.12.3.C. 1343
This Section 4.12.3 shall not be deemed to limit Contractor’s rights under any other provision of 1344
this Agreement. 1345
4.13 CONTAMINATION MONITORING 1346
For the purposes of this Section 4.13, the term “Route” is based on SB 1383 regulatory language as 1347
described in 14 CCR Section 18982.31.5. The term “Generator” is based on SB 1383 regulatory language 1348
and is inclusive of the terms “Customer” and “Generator” as defined in Exhibit A and as otherwise used in 1349
the Agreement. Contractor acknowledges that SB 1383 requires annual contamination monitoring of 1350
Discarded Materials, pursuant to 14 CCR Section 18984.5. The standard approach of contamination 1351
monitoring involves annual Route reviews, as provided in Section 4.13.1. The performance-based 1352
contamination monitoring approach involves waste evaluations, as provided in Section 4.13.2. 1353
4.13.1 Annual Route Reviews 1354
A. Methodology. Beginning January 1, 2022, Contractor shall, at its sole expense, conduct Route 1355
reviews of Containers for Prohibited Container Contaminants in a manner that: meets the 1356
requirements of this Section; is approved by the City; complies with SB 1383; and, results in all 1357
Routes being reviewed at least annually. 1358
Contractor’s Route review shall include all Container types in service (Recyclable Materials, 1359
Organic Materials, and Solid Waste Containers) for all Customer Types. The Containers shall be 1360
randomly selected prior to beginning the Route review through use of a random number 1361
generator; and the minimum number of Containers to be sampled shall be based on weekly Route 1362
size, as follows: 1363
1. For weekly Routes with less than 1,500 Generators, Contractor shall sample a minimum of 25 1364
Containers; 1365
2. For weekly Routes with 1,500-3,999 Generators, Contractor shall sample a minimum of 30 1366
Containers; 1367
3. For weekly Routes with 4,000-6,999 Generators, Contractor shall sample a minimum of 35 1368
Containers; and, 1369
4. For weekly Routes with more than 7,000 Generators, the study shall include a minimum of 40 1370
samples. 1371
Contractor shall develop a specific Route review methodology to accomplish the above Container 1372
inspection requirements and such methodology shall comply with the requirements of 14 CCR 1373
Section 18984.5(b). Contractor shall submit its proposed Route review methodology for the 1374
coming year to the City no later than January 15 of each year d escribing its proposed methodology 1375
for the calendar year and schedule for performance of each Route’s annual review. Contractor’s 1376
proposed Route review methodology shall include not only its plan for Container inspections, but 1377
shall also include its plan for prioritizing the inspection of Customers that are more likely to be 1378
December 3, 2020 -35- City of Cupertino/Recology Franchise Agreement
out of compliance. The City and/or CalRecycle will review and approve the proposed 1379
methodology. Contractor may commence with the proposed methodology upon approval. 1380
If the City and/or CalRecycle notifies Contractor that the methodology is inadequate to meet the 1381
requirements of 14 CCR Section 18984.5(b), Contractor shall, at its sole expense, revise the 1382
methodology and, after obtaining the City or CalRecycle approval, conduct additional Route 1383
reviews, increased Container inspections, or implement other changes using the revised 1384
procedure. If Contractor’s proposed methodology meets the requirements of 14 CCR Section 1385
18984.5(b), but has been deemed inadequate by the City, Contractor shall, at the expense of the 1386
City, revise the methodology and implement the necessary changes using the revised procedure. 1387
The City’s Contract Manager may request, and Contractor shall accept, modifications to the 1388
schedule to permit observation of the Route reviews by the City. In addition, Contractor shall 1389
provide an email notice to the City’s Contract Manager no less than ten (10) Working Days prior 1390
to each scheduled Route review that includes the specific time(s), which shall be within the City’s 1391
normal business hours, and location(s). 1392
B. Contamination Notification. Upon identification of Prohibited Container Contaminants in a 1393
Customer’s Container, Contractor shall provide the Customer with a notice of contamination in 1394
the form of either a Courtesy Notice or a Non-Collection Notice, pursuant to Section 4.10.3. 1395
C. Container Contaminant Log. The driver or other Contractor representative shall record each 1396
event of identification of Prohibited Container Contaminants in a written log or in the on-board 1397
computer system including: date, time, Customer’s address, type of Container, and maintain 1398
photographic evidence (if available). Contractor shall allow the City Contractor Manager access to 1399
such records, pursuant to Article 6. 1400
D. Contaminant Fees Assessment Report: Additionally, on no less than a daily basis, Contractor shall 1401
update the Customer’s account records to note the contaminant event(s) as identified by 1402
driver(s). Contractor shall maintain records and report to the City monthly on contamination 1403
monitoring activities and actions taken, consistent with the submittal timing and content 1404
requirements of Exhibit D. The monthly report shall include, but is not limited to: list of Customers 1405
that were assessed charges, photographic evidence of each contamination event(s) where a fee(s) 1406
was assessed, verification processes to assure accurate fee assessment, date of notification, 1407
form(s) of notification given to Customer, list of efforts made in educating the Customer that was 1408
assessed a fee, list of Customer Complaints in response to fee assessment, and Contractors 1409
response and actions taken in response to Customer Complaints. 1410
E. Identification of Excluded Waste. If Contractor’s driver observes Excluded Wasted, Contractor’s 1411
driver shall follow the applicable procedures specified in Section 4.10.3.H. 1412
F. Assessment of Contamination Fees. Contractor may impose contamination fees in accordance 1413
with Section 4.10.3.K. 1414
G. Communications with Customer. Contractor shall communicate with Customers in accordance 1415
with Section 4.10.3.I. 1416
H. Contractor Return for Collection. Contractor shall return to Customer Premises for Collection of 1417
Discarded Materials in accordance with Section 4.10.3.J. 1418
December 3, 2020 -36- City of Cupertino/Recology Franchise Agreement
I. Disposal of Prohibited Container Contaminants. Contractor may Dispose of Prohibited Container 1419
Contaminants observed in Customer’s Organic Materials Container or Recyclable Materials 1420
Container in accordance with Section 4.10.3.L. 1421
J. Monthly Reporting Requirements. Contractor shall maintain records and report to the City 1422
monthly on contamination monitoring activities and actions taken, in accordance with Exhibit D. 1423
4.13.2 Waste Evaluation Studies 1424
If, at the City’s sole discretion, the City pursues a performance-based compliance approach to SB 1383, as 1425
provided in Section 18998.1 of the SB 1383 regulations, then the Parties shall cooperate to conduct the 1426
waste evaluations contemplated by Section 18984.5(c). The evaluations shall be conducted by a third 1427
party selected and paid for by City or funded by Contractor and the direct cost of such allowed as an 1428
“Other Adjustment” in the next Rate adjustment. City and Contractor shall cooperate to obtain quotes for 1429
the third party’s services. Contractor shall, at no additional charge, make available space at its Rogers 1430
Avenue facility for the evaluations to be conducted, at mutually agreed times. 1431
4.14 SB 1383 INSPECTIONS AND ENFORCEMENT 1432
For the purposes of this Section 4.14, the term “Generators” is based on SB 1383 regulatory language and 1433
is inclusive of the terms “Customer” and “Generator” as defined in Exhibit A and as otherwise used in the 1434
Agreement. 1435
A. Annual Compliance Reviews 1436
1. General. Contractor shall perform Customer compliance reviews described in this Section 1437
commencing January 1, 2022, and at least annually thereafter, during a timeframe proposed 1438
by Contractor and approved by the City Contract Manager. 1439
2. Commercial and Multi-Family Generator Compliance Reviews. Contractor shall complete an 1440
annual compliance review of all Multi-Family and Commercial Customers that appear, based 1441
on subscribed-for Container volume, to generate two (2) cubic yards or more per week of 1442
Solid Waste, including Organic Materials, to determine: (i) whether Multi-Family and 1443
Commercial Customers are subscribed to Organic Material and Recyclable Materials 1444
Collection service; and, (ii) if not, whether Contractor has information indicating that the 1445
Customer is complying with Self-Hauling requirements per 14 CCR Section 18988.3 and the 1446
City Municipal Code, including whether a Commercial Premise is complying through Back-1447
Hauling Organic Materials. The compliance review shall mean a “desk” review of records to 1448
determine Customers’ compliance with the above requirements and does not require on-site 1449
observation of service. 1450
3. Annual Route Review. In addition to the targeted “desk” reviews described in Section 1451
4.14.A.2, beginning April 1, 2022 and annually thereafter, Contractor shall conduct annual 1452
Route reviews of Commercial, Multi-Family, and Single-Family Generators for compliance 1453
with the City’s Discarded Materials Collection program (specifically, whether Generators 1454
actually have the Containers they are subscribed or are required to have). Generator 1455
compliance Route reviews may be performed concurrently with the contamination 1456
monitoring Route reviews, described in Section 4.13.1, provided that Contractor documents 1457
a reasonable sampling, based on direction from the City Contract Manager, of Generators for 1458
December 3, 2020 -37- City of Cupertino/Recology Franchise Agreement
which compliance with the City’s Discarded Materials Collection program during the Route 1459
review was assessed. 1460
4. Food Recovery Compliance Reviews. Commencing January 1, 2022 and at least annually 1461
thereafter, Contractor and the City shall meet and confer regarding inspections of Tier One 1462
Commercial Edible Food Generators to assess compliance with the requirements of 14 CCR, 1463
Division 7, Chapter 12, Article 10. Commencing January 1, 2024 and at least annually 1464
thereafter, Contractor and the City shall expand Edible Food Generator compliance reviews 1465
to include inspections of Tier Two Commercial Edible Food Generators. 1466
B. Compliance Review Process 1467
1. Number of Reviews. Contractor shall conduct Route reviews and inspections of entities 1468
described in this Section at a minimum of once per year, or as directed by the City Contract 1469
Manager, to adequately determine the entities’ overall compliance with SB 1383, and City 1470
Municipal Code 6.24 Mandatory Organic Recycling for Business Structures. The City may 1471
require Contractor to prioritize inspections of entities that the City determines are more likely 1472
to be out of compliance. 1473
2. Non-Compliant Entities. From January 1, 2022 through December 31, 2023, when compliance 1474
reviews are performed by Contractor pursuant to this Section 4.14, Contractor shall provide 1475
City-approved educational materials, as described in Section 4.10, in response to violations. 1476
Contractor shall provide these educational materials to the non-compliant Customers and 1477
Generators within two (2) Working Days after determination of non-compliance or 1478
immediately upon determination of non-compliance if such non-compliance is determined 1479
during an inspection or Route review. Contractor shall document the non-compliant 1480
Customers and Generators and the date and type of education materials provided and report 1481
such information to the City in accordance with Exhibit D. Beginning January 1, 2024, 1482
Contractor shall document non-compliant Customers and Generators determined through 1483
Contractor’s compliance reviews pursuant to this Section 4.14, and shall report all Customers 1484
and Generators with SB 1383 violations to the City in accordance with Exhibit D. The City shall 1485
be responsible for subsequent enforcement action against the Generator or Customer. 1486
3. Documentation of Inspection Actions. Contractor shall generate a written or electronic 1487
record and maintain documentation for each inspection, Route review, and compliance 1488
review conducted, including the information described in Exhibit D. 1489
C. Documentation of Complaints. 1490
1. General. Contractor shall maintain a computer database log of all oral and written SB 1383-1491
related Complaints received by Contractor from Customers or other Persons in accordance 1492
with Article 6. 1493
2. SB 1383-Noncompliance Complaints. For Complaints received in which the Person alleges 1494
that an entity is in violation of SB 1383 requirements, Contractor shall document such 1495
Complaint investigations in accordance with Exhibit D. 1496
December 3, 2020 -38- City of Cupertino/Recology Franchise Agreement
3. Investigation of SB1383-Noncompliance Complaints 1497
a. Investigation. Contractor shall assist the City in meeting its obligation to investigate 1498
Complaints by commencing an investigation within thirty (30) calendar days after 1499
receiving a Complaint in the following circumstances: (i) upon Contractor receipt of a 1500
Complaint that an entity may not be compliant with SB 1383 and if the City determines 1501
that the allegations against the entity, if true, would constitute a violation of SB 1383; 1502
and, (ii) upon City request to investigate a Complaint received by the City, in which the 1503
City determines that the allegations against the entity, if true, would constitute a 1504
violation of SB 1383. Contractor is required to investigate Complaints against Customers 1505
and Generators, and not against Food Recovery Organizations, Food Recovery Services, 1506
and other entities regulated by SB 1383. 1507
Contractor shall investigate the Complaint by: 1508
i. Reviewing the Service Level of the Customer (if the entity is a Customer of 1509
Contractor); 1510
ii. Reviewing the waiver list, if applicable, to determine if the entity has a valid, City-1511
approved de minimis, space constraint, or Collection frequency waiver; 1512
iii. Reviewing the Self-Haul registration list, if applicable, to determine if the entity 1513
has registered and reviewing the entities reported Self-Haul information; 1514
iv. Inspecting Premises of the entity identified by the complainant, if warranted; and, 1515
v. Contacting the entity to gather more information, if warranted; 1516
vi. Affixing a City-approved notice of Complaint on the Customer’s Container, in 1517
accordance with Section 4.10.3. 1518
b. Reporting. Within ten (10) calendar days after completing an investigation of an SB 1519
1383- noncompliance Complaint, Contractor shall submit to the City an investigation 1520
Complaint report that documents the Customer account in question, the nature of the 1521
Complaint, the investigation performed, and the City-approved educational materials 1522
provided to non-compliant Generators if Contractor determines a violation has 1523
occurred. 1524
Contractor shall provide to the City in its monthly report a list of all Customer 1525
Complaints that have not been resolved by Contractor within thirty (30) calendar days 1526
after receiving such Complaints. The Customer Complaint list shall include the 1527
Customer’s account information, including Customer’s then-current Service Level, the 1528
nature of the Complaint, and Contractor’s efforts to resolve the Complaint. The City, or 1529
its designee, shall be responsible for investigating such outstanding Complaints 1530
received by Contractor. 1531
Within three (3) Working Days after the City’s or its designee’s request, Contractor shall 1532
provide the City or its designee with Customer account information and other 1533
documentation that may be useful in the investigation, such as records of the 1534
December 3, 2020 -39- City of Cupertino/Recology Franchise Agreement
Customer’s two most recent change(s) in Service Level and other Customer service 1535
records. 1536
4.15 EDIBLE FOOD RECOVERY PROGRAM 1537
A. General. Pursuant to the requirements of SB 1383, 14 CCR, Division 7, Chapter 12, Article 10, the 1538
City is responsible for developing and implementing a Food Recovery program in the City. 1539
Contractor shall not impede, interfere, or attempt to impede or interfere with the 1540
implementation, expansion, or operation of Food Recovery program efforts in the City. Contractor 1541
acknowledges that the City’s Edible Food Recovery program may Divert Edible Food that would 1542
otherwise become Food Scraps from Contractor’s Organic Materials Collection program. 1543
B. Identification of Commercial Edible Food Generators. Contractor shall assist City in identifying 1544
Tier One and Tier Two Commercial Edible Food Generators for the purpose of the Food Recovery 1545
program. City shall make the final determination as to whether a Customer is a Tier One or Tier 1546
Two Commercial Edible Food Generator. No later than six (6) months after the Commencement 1547
Date, and annually thereafter, Contractor shall identify and provide a list to the City of Commercial 1548
Customers that qualify, or appear to qualify, as Tier One or Tier Two Commercial Edible Food 1549
Generators, as defined by this Agreement. The list shall include, at a minimum: the Customer 1550
name; service address; contact information; apparent Tier One or Tier Two classification (or actual 1551
classification, once determined by City); and, type of business as it relates to the categories of 1552
entities specified under the definitions of Tier One and Tier Two Commercial Edible Food 1553
Generators. Contractor shall be permitted to make reasonable good faith estimates of factual 1554
matters necessary for Tier One/Tier Two classification (such as square footage, number of seats, 1555
etc.) if the Customer fails to provide it. Contractor shall update this information annually; maintain 1556
an up-to-date database; and include this information in Contractor’s annual report, in accordance 1557
with Exhibit D. If Commercial Edible Food Generators that do not qualify as Tier One or Tier Two 1558
desire to participate in the Food Recovery program, the City shall provide technical assistance and 1559
maintain documentation. 1560
C. Edible Food Recovery at Special Events. Contractor shall support the recovery of Edible Food 1561
from special events in accordance with Section 4.6 and 14 CCR Chapter 12 Section 18991.3. 1562
Contractor acknowledges that efforts to recover Edible Food at the special events may be 1563
conducted by others; and, Contractor agrees not to interfere with such activities. 1564
4.16 SB 1383 COMPLIANCE APPROACH 1565
The Agreement assumes use of a “standard” compliance approach pursuant to 14 CCR, Division 7, Chapter 1566
12. The distribution of City and Contractor responsibilities for SB 1383 is further described in Exhibit J. 1567
Exhibit J also contains definitions and other clarifying detail related to SB 1383 requirements. 1568
During the Term of this Agreement, the City may elect to pursue a “performance-based” compliance 1569
approach in accordance with 14 CCR, Division 7, Chapter 12, Article 17, in which case the City Contract 1570
Manager and Contractor shall meet and confer no less than six (6) months prior to the scheduled shift to 1571
a performance-based approach. City’s election to pursue a “performance-based” compliance approach 1572
shall be treated as a change in scope under Section 3.5. 1573
December 3, 2020 -40- City of Cupertino/Recology Franchise Agreement
ARTICLE 5. 1574
STANDARD OF PERFORMANCE 1575
5.1 GENERAL 1576
Contractor shall at all times comply with applicable Federal, State, and local laws and regulations and 1577
provide services in a manner that is safe to the public and Contractor’s employees. 1578
5.2 OPERATING HOURS AND SCHEDULES 1579
A. Hours of Collection. Unless otherwise authorized by the City Contract Manager, Con tractor’s days 1580
and hours for Collection operations shall be as follows: 1581
1. Residential Premises. Collection from Residential Premises shall only occur between the 1582
hours of 7:00 a.m. and 5:00 p.m., Monday through Friday, unless specifically approved in 1583
advance in writing by the City; except that during weeks in which a Holiday occurs, Contractor 1584
may provide Collection scheduled for a Friday on Saturday. 1585
2. Commercial Premises. Collection from Commercial Premises shall occur only between the 1586
hours of 6:00 a.m. and 5:00 p.m., seven (7) days per week, unless specifically approved in 1587
advance in writing by the City Contract Manager. In all areas where Residential properties are 1588
adjacent to Commercial properties or close enough that the Collection vehicle noise disrupts 1589
sleeping residents, Collection services from Commercial Premises shall not start before 8:00 1590
a.m. Monday through Friday or 9:00 a.m. on Saturday and Sunday. 1591
3. City Facilities. The Collection schedule for City facilities shall be the same as Commercial 1592
Premises specified in Section 5.2.A.2 above. 1593
B. Holiday Collection Schedule. Contractor, at its sole discretion, may choose not to provide 1594
Collection services on a Holiday. In such event, Contractor shall provide Single-Family Collection 1595
services on the day following the Holiday, thereby adjusting subsequent work that week with 1596
normally scheduled Friday Collection Services being performed on Saturday; however, Customer 1597
service days shall be returned to the normal schedule within one (1) week of the Holiday. Multi-1598
Family, Commercial, and City Collection services shall be adjusted as agreed between Contractor 1599
and the Customer, but must meet the minimum frequency requirement of one (1) time per week. 1600
Contractor shall provide Customers notice of Holiday-related changes in Collection schedules at 1601
least thirty (30) calendar days prior to the change. 1602
5.3 COLLECTION STANDARDS 1603
A. Servicing Containers. Contractor shall Collect and return each Container to the location where 1604
the Occupant placed the Container for Collection. Contractor shall place the Containers upright 1605
with lids properly secured. All Carts serviced within the public right of way shall be set out with 1606
wheels against the Curb in a location that does not block access to driveways and minimizes 1607
encroachment on bicycle and pedestrian paths. 1608
For Customers other than Single-Family Residential Customers, Contractor shall, without 1609
additional charge to the Customer, open and close gates, pull or push up to three (3) Carts or Bins 1610
December 3, 2020 -41- City of Cupertino/Recology Franchise Agreement
per Customer (i.e., one (1) Cart or Bin each of Recyclable Materials, Organic Materials, and Solid 1611
Waste) up to twenty-five (25) feet (push up to 25 feet then return) from the location where the 1612
Occupant placed the Container for Collection to the Collection vehicle for service. Contractor may 1613
charge such Customers at the Rates for any additional Containers that need to be pulled or 1614
pushed, with a lower Rate for Carts as provided in Exhibit G3. Container lids shall be closed after 1615
servicing and all Bins shall be returned to the Customer’s waste enclosure. 1616
Contractor, at the request of Customers, may provide special services including: (i) unlocking 1617
Containers; (ii) accessing Container enclosures with a key; or, (iii) pulling or pushing Containers 1618
distances greater than twenty-five (25) feet. Contractor may charge Customers at the Rates for 1619
such extra services. 1620
Under no circumstances shall Contractor be required to push or pull a Cart or Bin up or down 1621
stairs, up or down a slope that exceeds seven (7) degrees, or if doing so would pose an 1622
unreasonable safety risk to Contractor’s driver (e.g., overweight Containers). 1623
B. Hard-to-Service Areas. Contractor may request City consider the need to establish specific service 1624
standards for hard-to-service conditions, such as private roads, narrow streets, and steep streets 1625
where Contractor is otherwise unable to provide service meeting the highest safety standards. 1626
Contractor may request City consider the need to establish a modified or new Rate(s) for hard-to-1627
service conditions. In no instance shall Contractor charge such a modified or new Rate without 1628
prior City approval as provided in Section 8.2.E. 1629
Private Roads. Contractor may require Customers on private roads to sign road damage liability 1630
waivers as a condition to Contractor operating on such private roads. Such waivers shall be made 1631
available by Contractor for inclusion in the plan comments during the building permitting process. 1632
If Customers on private roads fail to sign such waivers, Contractor may require such Customer to 1633
receive service at the nearest paved Public Street. 1634
C. Litter Abatement, Spills, and Damages. Contractor shall use due care to prevent damage to roads 1635
and avoid spills or leaks of material placed for Collection, fuel, and other vehicle fluids while 1636
providing services under this Agreement. If any materials are spilled or leaked by Contractor 1637
during Collection and Transport, Contractor shall within two (2) hours notify the City Contract 1638
Manager of the spill and shall clean up all spills or leaks before leaving the site of the spill. If 1639
Contractor does not clean up litter within eight (8) business hours after notice by the City or 1640
Customer, and liquid spillage within two (2) hours after notice by the City, Contractor shall 1641
reimburse the City for all reasonable costs incurred by the City in the cleanup of all litter and/or 1642
liquid spillage caused by Contractor in the performance of this Agreement. In addition, failure by 1643
Contractor to notify City of spills within two (2) hours of Contractor observance, and failure by 1644
Contractor to clean up spills, shall result in Liquidated Damages pursuant to Exhibit F. Contractor 1645
shall not knowingly Transport any Compactor that is leaking and shall notify the Customer, 1646
pursuant to Section 4.10.3, that service of the Compactor cannot be performed. Contractor shall 1647
immediately notify the City Contract Manager if any Compactor is not serviced due to leakage. 1648
Contractor shall notify the City Contract Manager on the same Business Day of any Contractor 1649
vehicle accidents and/or property damage that occurs while Contractor performs services, except 1650
damage solely to Contractor’s property. Contractor shall initiate its insurance damage claim 1651
process within two (2) Business Days from when the incident occurred, and Contractor shall 1652
provide a copy of all such claims to the City Contract Manager within two (2) days of submitting 1653
December 3, 2020 -42- City of Cupertino/Recology Franchise Agreement
the claim, except damage solely to Contractor’s property. Should Contractor fail to timely 1654
complete repairs or replacements required by property damage caused by Contractor and City 1655
initiates corrective actions, Contractor shall reimburse the City for all reasonable costs incurred 1656
by the City in the repairs or replacements necessitated by such property damage. 1657
Spills, leaks, litter, and damage that present an imminent threat to stormwater or safety must be 1658
responded to immediately. Additionally, Contractor shall reimburse the fully-loaded labor cost, 1659
including over-time, for the City’s Stormwater Inspector to monitor cleanup of spills in accordance 1660
with the requirements of stormwater pollution prevention regulations. All spills, leaks, and litter 1661
shall be remediated to the satisfaction of the City Contract Manager or his/her designee. 1662
Contractor shall not Transfer loads from one vehicle to another on any public right of way, unless 1663
it is necessary to do so because of mechanical failure, combustion of material in the truck, or 1664
accidental damage to a vehicle. 1665
Contractor shall cover all open Drop Boxes at the pickup location before Transporting materials 1666
to the Approved Facility. Contractor shall, at all times, keep loaded material covered so as to 1667
prevent litter, leakage, or spillage from the Collection vehicle. Collection vehicles shall include 1668
hopper shielding to minimize litter while the contents of the individual Containers are being 1669
unloaded and while the truck is traveling along City right of way. In the event of repeated 1670
occurrences of litter emanating from Collection vehicles or resulting from Collection activity, the 1671
City Contract Manager may require Contractor to implement additional mitigations, at 1672
Contractor’s sole expense. 1673
Contractor shall conduct public outreach to Customers and staff training on and implementation 1674
of best management practices for litter abatement at no extra charge. Such best management 1675
practices include, without limitation: 1676
1. Closing Container lids and right sizing service: Contractor staff will tag overfull Containers with 1677
Courtesy Notices, in accordance with Section 4.10.3.C, which will serve as outreach and 1678
education to the Customer. 1679
2. Outreach to Customer on importance of bagging lightweight materials such as plastic bags, 1680
film plastics, foam peanuts, and other materials that can easily become litter due to their 1681
lightweight nature. 1682
3. Driver training on litter reduction techniques and litter removal best management practices. 1683
4. Affixing signage to the back and side of Contractor trucks, including a phone number for 1684
residents to report material spills. 1685
D. Development and Review of Collection Specifications. Contractor shall work with the City to 1686
maintain standard specifications for Collection Container enclosures at Commercial and Multi-1687
Family Premises. These specifications shall ensure that the Collection Container enclosures are 1688
built to provide adequate space and suitable configuration to allow Contractor to safely and 1689
efficiently service Recyclable Materials, Organic Materials, and Solid Waste Containers. 1690
Contractor’s Operations Manager or other appropriately qualified staff shall, upon request by the 1691
City Contract Manager, provide a review of plans for new Multi-Family and Commercial 1692
development or project design drawings. Contractor shall provide comments and 1693
December 3, 2020 -43- City of Cupertino/Recology Franchise Agreement
recommendations resulting from the review in writing within seven (7) Working Days after receipt 1694
of the documents for review. In each review report, Contractor shall comment on the 1695
acceptability of the proposed enclosure arrangements in terms of: i) the adequacy of space for 1696
Recyclable Materials, Organic Materials, and Solid Waste Containers; ii) the accessibility of the 1697
Containers for Collection including whether additional charges (e.g., push/pull) would apply; and, 1698
iii) ease of use by Occupants. 1699
E. No Commingling of Materials. Contractor shall not commingle materials that have been Source 1700
Separated with other materials types (for example, Recyclable Materials that have been properly 1701
placed for Collection shall not be combined with Solid Waste or Organic Materials). The foregoing 1702
shall not apply to contaminated Containers of Source Separated materials that are Collected as 1703
Solid Waste in accordance with this Agreement. 1704
F. Shared Collection Across Jurisdictions. Except as otherwise approved by the City Contract 1705
Manager or permitted by the last sentence of this paragraph, Contractor shall separately Collect 1706
materials generated in the City by City residents and businesses from: 1) materials generated by 1707
educational institutions located within the City (including public school districts serving City 1708
residents and DeAnza College); and, 2) materials collected from governmental jurisdictions other 1709
than the City that are serviced outside of this Agreement. If such commingling is approved, Tons 1710
collected from outside the City service area shall be subtracted from the reported Tons Collected 1711
in the City service area by use of estimated Tonnages. In order to achieve accurate estimates, 1712
Contractor shall, at least once per year, arrange to collect materials from all approved non-City 1713
service areas independently for a minimum of one week for the purposes of weighing the 1714
materials by stream or shall provide other data or allocation methods that provide the City 1715
reasonable assurance of accuracy. City hereby approves commingling of the material described 1716
in clause (1) above, including from educational institutions located outside City, but serviced on 1717
the same Route, provided that the Tonnages are reasonably allocated and the annual weighing is 1718
done as provided in this paragraph. 1719
5.4 TRANSFER AND PROCESSING STANDARDS 1720
5.4.1 Equipment and Supplies 1721
Contractor shall equip and operate the Approved Processing Facilities in a manner to fulfill Contractor’s 1722
obligations under this Agreement. Contractor is solely responsible for the adequacy, safety, and suitability 1723
of the Approved Processing Facilities. Contractor shall modify, enhance, and/or improve the Approved 1724
Processing Facilities as needed to comply with its obligations under this Agreement. 1725
Contractor shall provide all rolling stock, stationary equipment, material storage containers, spare parts, 1726
maintenance supplies, Transfer, Transport, and Processing equipment, and other consumables as 1727
appropriate and necessary to operate the Approved Processing Facilities and provide all services required 1728
by this Agreement. Contractor shall place the equipment in the charge of competent operators. 1729
Contractor shall repair and maintain all equipment at its own cost and expense. 1730
5.4.2 Scales and Weighing 1731
Contractor is solely responsible for ensuring accurate weighing of all materials entering and leaving the 1732
Approved Processing Facilities. 1733
December 3, 2020 -44- City of Cupertino/Recology Franchise Agreement
A. Facility Scales. Contractor shall maintain State-certified motor vehicle scales in accordance with 1734
applicable Federal, State, and local laws and regulations. All scales shall be linked to a centralized 1735
computer recording system at the Approved Processing Facilities to record weights for all 1736
incoming and outgoing materials. Should Contractor’s usual scales not be available for whatever 1737
reason, Contractor shall within two (2) Business Days arrange for use of substitute portable scales, 1738
obtain a backup generator for its usual scales, or weigh vehicles at nearby Contractor-Affiliated 1739
facilities. Pending such measures, Contractor shall, as necessary, estimate the Tonnages of 1740
materials delivered to and Transported from the Approved Processing Facilities, on the basis of 1741
delivery vehicle and Transfer trailer volumes, tare weights, and/or other available facility weight 1742
records. These estimates shall take the place of actual weights while scales are inoperable, and 1743
shall be identified as estimates in electronic records and reporting. 1744
B. Tare Weights. Where tare weights are used, Contractor shall electronically record the tare weight, 1745
identify vehicle as Contractor owned, and provide a distinct vehicle identification number for each 1746
vehicle. Contractor shall provide the City with a report listing the vehicle tare weight information 1747
upon request. Contractor shall promptly weigh additional or replacement vehicles prior to placing 1748
them into service. Contractor shall check tare weights at least annually, or within fourteen (14) 1749
calendar days after a City request, and shall re-tare vehicles immediately after any major 1750
maintenance or service event. If tare weighs are not used, Contractor shall weigh the loaded and 1751
unloaded weight of the vehicle. 1752
C. Testing. Contractor shall ensure that all scales are tested and calibrated in accordance with 1753
applicable Federal, State, and local laws and regulations, but at least every twelve (12) months or 1754
upon City request. 1755
D. Records. Contractor shall maintain computerized scale records and reports that provide 1756
information including date of receipt, inbound time, inbound and outbound weights of vehicles, 1757
and vehicle identification number. Contractor shall also maintain computerized scale records and 1758
reports providing historical vehicle tare weights for each vehicle and the date and location for 1759
each tare weight recorded. 1760
E. Upon-Request Reporting. If vehicle receiving and unloading operations are recorded on video 1761
cameras at the Approved Processing Facilities, Contractor shall (unless the videos have been 1762
deleted per Contractor’s standard practice) make those videos available for City review during the 1763
Approved Processing Facility’s operating hours, upon request of the City, and shall provide the 1764
name of the driver of any particular load if available. 1765
5.5 COLLECTION VEHICLE REQUIREMENTS 1766
A. General. Contractor shall provide a fleet of Collection vehicles sufficient in number and capacity 1767
to efficiently perform the work required by the Agreement in strict accordance with its terms. 1768
Contractor shall have available sufficient back-up vehicles for each type of Collection vehicle used 1769
to respond to scheduled and unscheduled maintenance, service requests, Complaints, and 1770
emergencies. All such vehicles shall have watertight bodies designed to prevent leakage, spillage, 1771
or overflow. All such vehicles newly-purchased under this Agreement shall meet on-road heavy 1772
duty vehicle emissions requirements for model year 2020, regardless of the actual model year of 1773
Contractor’s vehicles. All Collection vehicles shall be registered with the Department of Motor 1774
December 3, 2020 -45- City of Cupertino/Recology Franchise Agreement
Vehicles, and comply with all Federal, State, and local laws and regulations. Contractor’s vehicles 1775
shall utilize Recycled motor oil to the extent practicable. 1776
In accordance with Section 5.3 (Collection Standards) and Exhibit F, Collection vehicles shall 1777
include hopper shielding to minimize litter while the contents of the individual Containers are 1778
being unloaded and while the truck is traveling along the City right of way. 1779
Beginning February 1, 2022 and every year thereafter, the City and Contractor shall meet and 1780
confer to discuss available clean technology for Collection vehicles with the intention of lowering 1781
greenhouse gas emissions in the City and improve air quality in accordance with the goals of the 1782
City’s Climate Action Plan. 1783
B. Vehicle Age. Contractor shall replace vehicles in accordance with the vehicle replacement 1784
schedule included in Contractor’s Proposal. 1785
C. Vehicle Fuel. All Collection vehicles used by Contractor under this Agreement shall be powered 1786
by renewable diesel. 1787
D. Vehicle Capability. Collection vehicles shall have the capability of carrying and safely Transporting 1788
empty and full Used Oil Recovery Kits, as well as the capacity to Collect and Transport loose 1789
Cardboard overages, to ensure that Contractor is capable of complying with Exhibit B. Each vehicle 1790
shall also include an appropriate spill kit to contain at a minimum the amount of vehicle fluids for 1791
each truck and tools to begin clean-up in advance of a coordinated spill response service vehicle. 1792
Quarterly inspections of the spill kit shall be done by Contractor, and driver training shall be done 1793
at least once every twelve (12) months. Documentation of inspections and training shall be made 1794
available to the City upon demand. 1795
Collection vehicles shall have appropriate safety markings including, but not limited to, highway 1796
lighting, flashing and warning lights, clearance lights, and reflective tap striping, in accordance 1797
with the California Vehicle Code. 1798
E. Vehicle Appearance. Collection vehicles shall present a clean appearance while providing service 1799
under this Agreement, and shall be washed or repainted as necessary to maintain a positive public 1800
image. Vehicles used in Collection shall be thoroughly washed at a minimum of one (1) time per 1801
week, and thoroughly steam cleaned on a regular basis so as to present a clean appearance and 1802
minimize odors. All vehicles shall be painted on a regular schedule, with concurrence of the City 1803
(not to be unreasonably withheld), to maintain a clean, professional, new-like appearance. The 1804
City Contract Manager may, at any time, require the painting of any vehicle that has not been 1805
painted according to the schedule. City Contract Manager may require painting of up to two (2) 1806
vehicles per year that do not present a satisfactory appearance, regardless of whether they have 1807
been painted according to the schedule , as long as the vehicles are not scheduled to be replaced 1808
in the next twelve (12) months. By the end of 2021, Contractor shall repaint Collection vehicles 1809
used in City bearing the “Norcal” logo and coloring. The vehicles shall be painted in a uniform 1810
manner and consistent with Contractor colors; although Solid Waste, Recycling, and Organic 1811
Material vehicles may have different painting schemes. All graffiti shall be removed immediately. 1812
The City may inspect vehicles at any time to determine compliance with sanitation requirements. 1813
Contractor shall make vehicles available to the County Health Department for inspection at any 1814
frequency it requests. 1815
December 3, 2020 -46- City of Cupertino/Recology Franchise Agreement
Contractor's name and local telephone number shall be displayed on all vehicles in at least four 1816
(4) inch characters. All vehicles shall be equipped with sign board holders or other hardware to 1817
allow public education signage of no less than thirty-six (36) by forty-eight (48) inches to be 1818
displayed on both sides of the vehicle. 1819
F. Inspections. Contractor shall inspect each vehicle daily to ensure that all equipment is operating 1820
properly and that all safety features and functions of the vehicle are working. Vehicles that are 1821
not operating properly in any manner or for any reason shall be taken out of service until they are 1822
repaired and operate properly. Contractor shall repair, or arrange for the repair of, all of its 1823
vehicles and equipment for which repairs are needed because of accident, breakdown, or any 1824
other cause so as to maintain all equipment in a safe and operable condition. Contractor shall 1825
maintain a maintenance log for all Collection vehicles and shall make the log available upon 1826
request for City review. The maintenance log shall at all times be accessible to the City Contract 1827
Manager within three (3) calendar days after such a request. The City Contract Manager may 1828
inspect vehicles at any reasonable time, within three (3) calendar days after such a request, to 1829
determine compliance with sanitation requirements. 1830
G. Noise. All Collection operations shall be conducted as quietly as reasonably possible and shall 1831
conform to applicable Federal, State, County, and City noise level regulations, including the City 1832
noise ordinance. The City may request Contractor to test any piece of equipment for conformance 1833
with the noise limits in response to Complaints and/or when the City Contract Manager believes 1834
it is reasonable to do so. At the request of City, all vehicles shall be noise tested, and the results 1835
reported to the City. The cost of any noise testing shall be treated as an “other adjustment,” unless 1836
such test determines that one or more vehicle were out of compliance. 1837
5.6 CONTAINER REQUIREMENTS 1838
A. Containers Provided to Customers. On or before the Commencement Date, Contractor shall 1839
provide Customers (including Single-Family, Multi-Family, Commercial, and City facility 1840
Customers) with Collection Containers as requested by the Customer to meet its desired Service 1841
Level, if the Customer does not already have them. Contractor shall provide Containers to new 1842
Customers requesting service initiation, or existing Customers requesting a Used Oil Recovery Kit 1843
within five (5) Working Days after Contractor’s first receipt of the Customer request. 1844
On the Commencement Date of the Agreement, the Parties understand that a substantial number 1845
of Carts in service at Single-Family Customer Premises are Non-Conforming Carts because they: 1846
(a) are tan in color; (b) do not say “City of Cupertino” or, (c) have logos or identification for other 1847
organizations such as Recology, Norcal, or County of Santa Clara on them. The Contractor shall be 1848
responsible for identifying any and all Non-Conforming Carts and exchanging them for new Carts 1849
that are compliant with the requirements of this Agreement no later than December 31, 2021. 1850
Contractor understands that not all Containers will be set out each week and that some may be 1851
set out relatively infrequently. In accordance with Exhibit D, Contractor shall provide written 1852
updates to the City Contract Manager at least monthly documenting the planning, out of 1853
compliance inventory, production and distribution schedule, and completion date for exchange 1854
of the Non-Conforming Carts. Contractor’s obligation to exchange Non-Conforming Carts is 1855
without respect to the duration of the transition project, number of passes through the City it 1856
takes to completely identify and exchange all Containers, or level of effort associated therewith. 1857
City reserves the right to independently verify compliance. Contractor’s failure to comply with this 1858
December 3, 2020 -47- City of Cupertino/Recology Franchise Agreement
paragraph may result in assessment of Liquidated Damages pursuant to Section 10.6 and Exhibit 1859
F. 1860
Contractor-provided Containers shall be new or refurbished, and shall comply with the Container 1861
standards set forth in this Section. 1862
B. Container Standards 1863
1. All Carts shall be manufactured by injection or rotational molding methods. The Cart handles 1864
and handle mounts may be an integrally-molded part of the Cart body or molded as part of 1865
the lid. The Cart handles shall provide comfortable gripping area for pulling or pushing the 1866
Cart or lifting the lid. Pinch points are unacceptable. Carts provided to Customer shall have a 1867
useful life of ten (10) or more years or more as evidenced by a manufacturer’s warranty or 1868
other documentation acceptable to the City. Container manufacturing specifications shall be 1869
made available to the City upon request. 1870
2. Carts shall remain durable, and at a minimum, shall meet the following durability 1871
requirements to satisfy its intended use and performance, for the Term of this Agreement: 1872
maintain its original shape and appearance; be resistant to kicks and blows; require no routine 1873
maintenance and essentially be maintenance-free; not warp, crack, rust, discolor, or 1874
otherwise deteriorate over time in a manner that shall interfere with its intended use; resist 1875
degradation from ultraviolet radiation; be incapable of penetration by biting or clawing of 1876
household pets (i.e., dogs and cats); the bottoms of Cart bodies must remain impervious to 1877
any damage that would interfere with the Cart’s intended use after repeated contact with 1878
gravel, concrete, asphalt, or any other rough and abrasive surface; all wheel and axle 1879
assemblies are to provide continuous maneuverability and mobility as originally designed and 1880
intended. 1881
3. Carts shall be resistant to common household or Residential products and chemicals; human 1882
and animal urine and feces; and, airborne gases or particulate matter currently present in the 1883
ambient air of the Service Area. 1884
4. All Bins with a capacity of one (1) cubic yard or more shall meet applicable Federal regulations 1885
for Bin safety and be covered with attached lids. 1886
5. Contractor shall obtain the City’s written approval of Container material, design, colors, 1887
labeling, and other specifications (within the specifications set forth in this Agreement) before 1888
acquisition, painting, labeling, or distribution occurs. 1889
6. When purchasing plastic Collection Containers, Contractor shall purchase Containers that 1890
contain a minimum of 30% post-consumer Recycled plastic content, to the extent available 1891
from Cart manufacturers, unless such requirement is waived by the City Contract Manager. 1892
City understands that there is a trade-off between Recycled content and color availability and 1893
that City may have to waive the thirty percent (30%) Recycled content requirement in order 1894
to maintain City-approved Container colors, in accordance with subsection (C). 1895
7. Container lids shall be designed such that the following requirements are met: 1896
a. Prevents the intrusion of rainwater and vectors; 1897
December 3, 2020 -48- City of Cupertino/Recology Franchise Agreement
b. Prevents the emissions of odors; 1898
c. Enables the free and complete flow of material from the Container during the dump 1899
cycle without interference with the material already deposited in the truck body or the 1900
truck body itself and its lifting mechanism; 1901
d. Permits users of the Cart to conveniently and easily open and shut the lid throughout 1902
the serviceable life of the Cart; 1903
e. Hinged to the Cart body in such a manner so as to enable the lid to be fully opened, free 1904
of tension, to a position whereby it may rest against the backside of the Cart body; 1905
f. Prevents damage to the Container body, the lid itself, or any component parts through 1906
repeated opening and closing of the lid by Generators or in the dumping process as 1907
intended; 1908
g. Remains closed in winds up to twenty-five (25) miles per hour from any direction. All 1909
lid hinges must remain fully functional and continually hold the lid in the original 1910
designed and intended positions when either opened or closed or any position between 1911
the two extremes; and, 1912
h. Designed and constructed such that it prevents physical injury to the user while opening 1913
and closing the Cart. 1914
8. Containers shall be stable and self-balancing in the upright position, when either empty or 1915
loaded to its maximum design capacity with an evenly distributed load, and with the lid in 1916
either a closed or an open position. Containers shall be capable of maintaining upright 1917
position in sustained or gusting winds of up to twenty-five (25) miles per hour as applied from 1918
any direction. 1919
9. Containers shall be capable of being easily moved and maneuvered, if applicable, with an 1920
evenly distributed load equal in weight to its maximum design capacity on a level, sloped or 1921
stepped surface. 1922
10. All such Containers shall be one hundred percent (100%) Recyclable at the end of their useful 1923
life. 1924
11. All Containers shall be designed and constructed to be watertight and prevent the leakage of 1925
liquids. 1926
12. Container colors shall be colorfast and resistant to fading as a result of weathering or 1927
ultraviolet degradation. 1928
C. Container Colors. All Containers newly purchased by Contractor after the Effective Date shall 1929
comply with the Container color requirements specified in this Section 5.6, or as otherwise 1930
specified in 14 CCR Section 18982; 14 CCR, Division 7, Chapter 12, Article 3; or other Applicable 1931
Law. The lids and bodies of Carts shall be uniform for each Container type, as follows: 1932
1. Recyclable Materials Cart bodies and lids shall be blue; 1933
December 3, 2020 -49- City of Cupertino/Recology Franchise Agreement
2. Organic Materials Cart bodies and lids shall be green; and 1934
3. Solid Waste Cart bodies and lids shall be grey. 1935
Bins shall match the above color scheme, except that all Bin lids may be black/grey. 1936
C&D Bins and Drop Boxes. Bins and Drop Boxes for Collection of C&D may be in any color, 1937
provided that the colors are consistent with the material-specific Container color requirements, 1938
(green Container for Organic Materials, blue Container for Recyclable Materials, gray Container 1939
for Solid Waste) and provided that the C&D Container colors are consistent for all C&D Containers. 1940
The C&D Container color shall be reviewed and approved by the City. All Bins and Drop Boxes 1941
used for Collection of Source Separated metals or Organic Materials shall have attached lids that 1942
prevent entry of stormwater. 1943
Hardware such as hinges and wheels on the Containers may be a different color than specified 1944
above. All Containers shall comply with these color requirements. 1945
D. Container Labeling. The labeling requirements set forth in this Section 5.6.D shall apply only to 1946
new Containers provided by Contractor to replace existing Containers, or to new Customers, after 1947
July 1, 2021. All labels and other markings on the Containers shall be approved by the City in 1948
advance of ordering of such labels and/or Containers. At a minimum, all Containers shall say “City 1949
of Cupertino,” show the capacity (yards or gallons), contain an identifying inventory or serial 1950
number, and shall not be marked with the Franchisee's or other organizations’ name or logo. 1951
No later than March 1, 2021, the City and Contractor shall meet and confer to finalize Contractor 1952
Container labeling requirements respective to SB 1383. At a minimum, on the lid of each Cart, and 1953
the body of each Bin and Drop Box, Contractor shall label the ultimate destination of such 1954
materials as follows: “LANDFILL” for Solid Waste; “RECYCLE” for Recyclable Materials (including 1955
Cardboard, mixed paper, metal, etc.); and, “COMPOST” for Organic Materials (including Food 1956
Waste, Yard Trimmings, wood waste, etc.). In addition, Containers shall be imprinted or labeled 1957
with text or graphic images that indicate the primary materials accepted and the primary 1958
materials prohibited in that Container. Contractor shall label the Container capacity (in gallons 1959
for Carts, and cubic yards for Bins and Drop Boxes) on the front or side of the body of each Bin or 1960
Drop Box, and on the lid of each Cart. Contractor shall replace Container labels as needed or upon 1961
City direction on a Container-by-Container basis. 1962
1. Prior to ordering any Containers or lids with in-mold labels, Contractor shall submit a sample 1963
of its proposed label, proposed location(s) for placement of labels on each type of Container, 1964
and its labeling plan to the City Contract Manager for approval. 1965
Contractor shall be prohibited from including Contractor’s name and/or logo on any 1966
Containers utilized in the City. 1967
E. Repair and Replacement of Containers; Inventory. Contractor shall be responsible for repairing 1968
or replacing Containers when Contractor determines the Container is no longer suitable for 1969
service; or when the City or Customer requests replacement of a Container that does not properly 1970
function, leaks, is damaged, or is otherwise not fit for service. Contractor shall be responsible for 1971
acquiring and providing the replacement Containers. Contractor shall repair or replace all 1972
damaged or broken Containers within five (5) Working Days after Customer or City request. Minor 1973
December 3, 2020 -50- City of Cupertino/Recology Franchise Agreement
cracks, holes, and other damages to hinges, wheels, axle, hardware, and other component parts 1974
shall be readily repairable by Contractor personnel. All repairs must restore the Cart to its full 1975
functionality to meet the design and performance requirements as set for herein. 1976
Contractor shall maintain a sufficient inventory of Containers to accommodate new Customer 1977
requests for service, requests for change in Service Levels (size, type, or number of Containers) 1978
from current Customers, and requests for replacement due to damage. Contractor is required to 1979
keep accurate count/inventory of Containers used, date of purchase, and date of replacement, 1980
which shall be made available upon request for City review. 1981
Contractor shall provide to Single-Family Customers no less than one (1) free Cart replacement 1982
per any twelve (12) month period upon Customer request. If Customer requests more than one 1983
(1) Cart replacement per any twelve (12) month period, Contractor may charge Customers the 1984
Rate for such additional replacement service. In addition, Single-Family Customers may also 1985
request one Cart size exchange per Rate Period at no charge beyond what Rate change might 1986
result from a change to Cart size. All such Containers shall be provided within five (5) Working 1987
Days after request. Contractor’s failure to comply with the Container requirements may result in 1988
assessment of Liquidated Damages pursuant to Section 10.6 and Exhibit F. 1989
F. Maintenance, Cleaning, Painting. All Containers shall be maintained in a safe, serviceable, and 1990
functional condition and present a clean appearance. Contractor shall repair or replace all 1991
Containers damaged by Collection operations in accordance with standards specified in Section 1992
5.6.E, unless damage is caused by Customer's gross negligence, in which case, Contractor may 1993
charge Customers the Rate for such repair or replacement service. All Containers shall be 1994
maintained in a functional condition. 1995
Contractor shall steam clean and repaint all Containers as needed (other than Carts) so as to 1996
present a clean appearance. Upon Customer request, Contractor shall steam clean Multi-Family 1997
and Commercial Customers’ Bins one (1) time per year at no additional charge. Contractor shall 1998
additionally offer steam cleaning service (or clean Container exchange) to Customers requesting 1999
such service, and may charge Customers the Rate for such cleaning (or Container exchange) 2000
service. Contractor shall steam clean Containers at Contractor’s corporation yard or facility, or at 2001
another location other than at a Customer’s Premises, as approved by the City Contract Manager. 2002
All steam cleaning shall use appropriate wash water capture and treatment. 2003
Contractor shall remove graffiti from Containers within forty-eight (48) hours after identification 2004
by Contractor’s employees or notice by the City Contract Manager or Customer if such graffiti 2005
includes any written or pictorial obscenities, and otherwise within seven (7) calendar days. 2006
Upon request from the City Contract Manager, Contractor shall provide the City with a list of 2007
Containers and the date each Container was painted and maintained. 2008
G. City Ownership of Containers at End of Term. At the end of the Term of this Agreement, all Carts 2009
and Bins purchased and put into service at Customer Premises during the Term of the Agreement 2010
shall become property of the City at no cost to the City if such Containers are fully depreciated. 2011
All Carts and Bins purchased and put into service at Customer Premises during the Term of the 2012
Agreement that have not been fully depreciated shall be available to the City for purchase, at the 2013
City’s option, at a cost reflecting the net book value. 2014
December 3, 2020 -51- City of Cupertino/Recology Franchise Agreement
At its sole discretion, the City may elect not to exercise its purchase option and, in such case, the 2015
Carts and Bins (and any other Contractor-owned Containers and Compactors) shall remain the 2016
property of Contractor at the end of the Term of this Agreement. In such case, Contractor shall 2017
be responsible for outstanding depreciation and for removing all such Containers and Compactors 2018
in service from Customer Premises within fourteen (14) Working Days after the end of the Term, 2019
or within a different timeframe mutually agreed to by the Parties. Contractor shall arrange for 2020
Reuse or Recycling of Containers, and Compactors removed from the City. 2021
5.7 PERSONNEL 2022
A.General. Contractor shall furnish such qualified personnel as may be necessary to provide the 2023
services required by this Agreement in a safe and efficient manner. Contractor shall designate at 2024
least one (1) qualified employee (Contractor’s Contract Manager) as the City’s primary point of 2025
contact with Contractor who is principally responsible for Collection operations and resolution of 2026
service requests and Complaints. Contractor’s Contract Manager shall be empowered to 2027
negotiate on behalf of and bind Contractor with respect to any changes in scope, dispute 2028
resolution, compensation adjustments, and service- related matters that may arise during the 2029
Term of this Agreement. 2030
Contractor shall use its best efforts to ensure that all employees present a neat appearance and 2031
conduct themselves in a courteous manner. Contractor shall not permit its employees to accept, 2032
demand, or solicit, directly or indirectly, any additional compensation, or gratuity from Customers 2033
or members of the public. 2034
The minimum staffing positions to be provided by Contractor to perform the services described 2035
herein to the City are identified in Exhibit H. Failure to consistently maintain these staffing levels, 2036
by position, during the Term of the Agreement shall be considered a material breach. Contractor 2037
shall not be deemed to be in breach of this paragraph if such positions are unfilled for a period 2038
less than four (4) months due to staff turnover, leave, or other ordinary-course employment 2039
contingencies. If Contractor anticipates that such a position may be unfilled for more than four 2040
(4) months due to such reasons, Contractor may present a corrective action plan to the City2041
Contract Manager showing how the position will be temporarily filled or covered using other2042
resources. If the plan demonstrates to the City Contract Manager’s reasonable satisfaction that2043
the position will be adequately filled or covered, then Contractor shall not be in breach of this2044
paragraph so long as it complies with the plan.2045
B. Driver Qualifications. All drivers must have in effect a valid license of the appropriate class, issued 2046
by the California Department of Motor Vehicles. Contractor shall use the Class II California 2047
Department of Motor Vehicles employer “Pull Notice Program” to monitor its drivers for safety. 2048
C.Safety Training. Contractor shall provide suitable operational and safety training for all of its 2049
employees who operate Collection vehicles or equipment. Contractor shall train its employees 2050
involved in Collection to identify, and not to Collect, Excluded Waste and Prohibited Container 2051
Contaminants. Upon the City Contract Manager’s request, Contractor shall provide a copy of its 2052
safety policy and safety training program, the name of its safety officer, and the frequency of its 2053
trainings. 2054
December 3, 2020 -52- City of Cupertino/Recology Franchise Agreement
D.Designated Staff. 2055
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1.Contractor’s Contract Manager. Contractor shall designate one (1) qualified full-time
employee as Contractor’s Contract Manager to serve as the City’s primary, day-to-day
point of contact with Contractor who is familiar with the Agreement, Collection
operations, and resolution of service requests and Complaints. Contractor has named its
General Manager as such Person. The Contractor’s Contract Manager shall be available
to the City Contract Manager through the use of telecommunication equipment at all
times that Contractor is providing Collection services. In the event the Contractor’s Contract
Manager is unavailable due to illness or vacation, Contractor shall designate an acceptable
substitute who shall be available and who has the authority to act in the same capacity as
the Contractor’s Contract Manager. The City understands that the Contractor’s Contract
Manager is not authorized to negotiate on behalf of, or to bind Contractor except with
regard to normal service issues.
2.Field Supervisor. Contractor shall designate one (1) qualified full-time employee as supervisor
of field operations. The designated field supervisor will devote at least fifty percent (50%)
of his/her time in the City in the field checking on Collection operations, including responding
to Customer requests, inquiries, and Complaints.
3.Waste Zero Specialist. Contractor shall provide two (2) full-time Waste Zero Specialists who are solely
dedicated to the City and shall not perform any work related to other jurisdictions, proposals, or
business functions of Contractor. Contractor shall hire the Waste Zero Specialists in advance of the
Commencement Date. The duties of the Waste Zero Specialists will be focused on public
education, community outreach, Commercial and Multi-Family site visits, and technical assistance,
and will be substantially as proposed by Contractor in Exhibit G, Contractor’s Proposal, and in
Exhibit C, Public Education and Outreach Requirements, and notwithstanding Section 2 of Exhibit C,
may also include performing the route reviews contemplated by Sections 4.13 and 4.14, or other
SB1383 compliance-related activities set forth in this agreement. The Waste Zero Specialists shall be
full-time, regular, professional positions, compensated in accordance with the wages shown in
Contractor’s Proposal for such positions. Contractor acknowledges that the Waste Zero Specialist role
is not intended to be an internship, or entry-level role. The City shall have the option to
participate in the hiring and training process of Contractor’s Waste Zero Specialists. The City may
also employ corresponding staff member(s) who will work in partnership with Contractor’s Waste Zero
Specialists and Contractor’s Waste Zero Specialists shall cooperate and share information openly with
City employees.
In the event that Contractor fails to provide a full-time equivalent Waste Zero Specialist for
more than four (4) months, Contractor shall remit to the City as Liquidated Damages eight
thousand and twenty-eight dollars ($8,028) per un-provided employee for every month (in
excess of four (4) months) such employee is not provided, prorated on a daily basis for partial
months. Such amount shall be adjusted annually by the same percentage used to adjust Rates
in accordance with Exhibit E. For example if, for six (6) months, Contractor assigns the
dedicated Waste Zero Specialist to another jurisdiction for half of their t ime, Contractor would
remit to the City a minimum of forty eight thousand one hundred sixty-eight dollars ($48,168),
assuming no annual adjustment of the amount has occurred. Contractor shall remit such
Liquidated Damages payment within fifteen (15) Business Days after a written request by the
City. The intent of this payment is for the City to utilize the funds to separately procure
equivalent public education services and ensure the contractually agreed upon levels of
technical assistance and outreach to Customers. In the event the Waste Zero Specialist
position becomes vacant, Contractor may temporarily provide a qualified substitute (e.g., a
2098
December 3, 2020 -53- City of Cupertino/Recology Franchise Agreement
short-term contractor or a Waste Zero Specialist re-assigned from another Recology area) 2099
while it is conducting its hiring process. In that event, the time devoted by the qualified 2100
substitute to the City shall be considered as Waste Zero Specialist time, provided that such 2101
arrangements do not exceed the four (4) month hiring allowance established by this Section. 2102
Should the temporary arrangements be utilized beyond that four (4) month period, the 2103
months of payments to the City shall be counted from the original date of the vacancy. 2104
E.Key Personnel. Contractor shall make reasonable efforts to maintain the stability and continuity 2105
of Contractor’s staff assigned to perform the services required under this Agreement. Contractor 2106
shall notify the City of any changes in Contractor’s key staff to be assigned to perform the services 2107
required under this Agreement and shall obtain the approval of the City Contract Manager (not 2108
to be unreasonably withheld) of all proposed key staff members who are to be assigned to 2109
perform services under this Agreement prior to any such performance. 2110
Notwithstanding the City’s approval of Contractor’s personnel, Contractor shall not be relieved 2111
from any liability resulting from the work to be performed under this Agreement, nor shall 2112
Contractor be relieved from its obligation to ensure that its personnel maintain all requisite 2113
certifications, licenses, and the like, and Contractor shall ensure that its personnel at all times fully 2114
comply with applicable Federal, State, and local laws and regulations. 2115
At any point during the Term of this Agreement, the City may request, in writing, for good cause, 2116
that any of Contractor’s employees be reassigned such that they no longer perform any work 2117
relating to this Agreement, and shall provide a statement describing the reason for such request. 2118
“Good cause” means that the employee was charged with or convicted of a felony, practiced or 2119
attempted to practice a fraud against the City, or engaged in a gross dereliction of duty in 2120
connection with this Agreement. Within twenty-four (24) hours after Contractor’s receipt of such 2121
request, or such other time agreed to by the City in writing, Contractor shall remove the identified 2122
employee(s) from performing any work related to this Agreement; the vacated position(s) must 2123
be filled by Contractor with a suitable replacement promptly thereafter, and Contractor shall 2124
immediately fill the vacated position with a temporary replacement if required to perform, 2125
without delay, all services required under this Agreement. 2126
5.8 HAZARDOUS WASTE INSPECTION AND HANDLING 2127
A.Inspection Program and Training. Contractor shall develop a load inspection program that 2128
includes the following components: (i) personnel and training; (ii) load checking activities; (iii) 2129
management of wastes; and, (iv) record keeping and emergency procedures. 2130
Contractor’s load checking personnel, including its Collection vehicle drivers, shall be trained in: 2131
(i) the effects of Hazardous Substances on human health and the environment; (ii) identification2132
of Prohibited Container Contaminants; and, (iii) emergency not ification and response procedures.2133
Collection vehicle drivers shall inspect Containers before Collection when practical and when2134
suspicious conditions are observed.2135
B.Response to Excluded Waste Identified During Collection. If Contractor determines that material 2136
placed in any Container for Collection is Excluded Waste or presents a hazard to Contractor's 2137
employees, Contractor shall have the right to refuse to accept such material. Generator shall be 2138
contacted by Contractor in accordance with Section 4.10.3.H. Under no circumstances shall 2139
December 3, 2020 -54- City of Cupertino/Recology Franchise Agreement
Contractor’s employees knowingly Collect Excluded Waste or remove unsafe or poorly 2140
containerized Excluded Waste from a Collection Container. 2141
If Excluded Waste is found in a Collection Container or Collection area that could possibly result 2142
in imminent danger to people or property, Contractor shall immediately notify the Fire 2143
Department and the City Contract Manager. 2144
C. Response to Excluded Waste Identified at Processing or Disposal Facility. Materials Collected by 2145
Contractor will be delivered to the Approved Facilities for purposes of Processing or Disposal. In 2146
the event that load checkers and/or equipment operators at such facility identify Excluded Waste 2147
in the loads delivered by Contractor, such personnel shall remove these materials for storage in 2148
approved, on-site, Excluded Waste storage Container(s). Contractor or the facility operator shall 2149
arrange for removal of the Excluded Wastes at its cost by permitted haulers in accordance with 2150
Applicable Law. Contractor may, at its sole expense, attempt to identify and recover the cost of 2151
Disposal from Generator. If Generator can be successfully identified, Contractor may seek to 2152
recover from Generator the cost of this effort, as well as the cost of Disposal. 2153
5.9 CONTRACT MANAGEMENT 2154
The City has designated staff, the City Contract Manager, to be responsible for the monitoring and 2155
administration of this Agreement. Contractor shall designate an employee to serve as Contractor’s 2156
Contract Manager, to be capable of binding Contractor to decisions made in the management of the 2157
Agreement and who is responsible for working closely with the City Contractor Manager in the monitoring 2158
and administration of this Agreement. 2159
Contractor’s Contract Manager shall meet and confer with the City Contract Manager to implement and 2160
execute the requirements of this Agreement in an efficient, effective, manner that is consistent with the 2161
stated objectives of this Agreement, and to resolve any differences of interpretation. 2162
From time to time the City Contract Manager may designate other agents of the City to work with 2163
Contractor on specific matters. In such cases, those individuals should be considered designates of the 2164
City Contract Manager for those matters to which they have been engaged. Such designates shall be 2165
afforded all of the rights and access granted thereto. 2166
In the event of dispute between the City Contract Manager and Contractor regarding the interpretation 2167
of or the performance of services under this Agreement, the City Contract Manager’s determination shall 2168
be conclusive except (i) as to data or records that Contractor deems constitute proprietary information or 2169
trade secrets, which shall be addressed as provided in Section 6.1, and (ii) where such determination 2170
results in a material impact to Contractor’s revenue and/or cost of operations. In the event a dispute 2171
between the City Contract Manager and Contractor results in such material impact to Contractor, the 2172
provisions of Section 10.9 shall apply. For the purposes of this section, “material impact” is an amount 2173
equal to or greater than fifty thousand dollars ($50,000). 2174
The City Contract Manager or their designate shall have the right to observe and review Contractor 2175
operations and Processing Facilities and enter Premises for the purposes of such observation and review, 2176
including review of Contractor’s records, during reasonable hours with reasonable notice. In no event 2177
shall Contractor prevent access to such Premises for a period of more than three (3) calendar days after 2178
receiving such a request. The City Contract Manager shall be granted access to Contractor’s information 2179
systems and Customer service database in accordance with Section 4.11. 2180
December 3, 2020 -55- City of Cupertino/Recology Franchise Agreement
5.10 ENVIRONMENTALLY-PREFERABLE PURCHASING 2181
Contractor shall, prior to the Commencement Date, develop and implement an “Environmentally 2182
Preferable Purchasing Policy” for office, breakroom and promotional products. Contractor shall require 2183
the purchase of the following items for operations impacting the City of Cupertino: 2184
• Copy Paper: Purchase of 100% post-consumer content (PCC) Recycled content products, including 2185
letter, ledger and legal-sized varieties. 2186
• Misc. Paper: Purchase of minimum 50% post-consumer (PCC) Recycled content products, with 2187
goal to achieve 100% Recycled content, when available (filing folders, mailing envelopes, paper 2188
tablets, notebooks, etc.). 2189
• Paper Towels and Bath Tissue: Purchase minimum 50% Recycled content products, with goal to 2190
achieve 100% Recycled content. 2191
• Janitorial: Purchase natural cleaners and detergents as certified by Green Seal or EcoLogo™. 2192
Contractor shall include a summary of their environmentally-preferable purchasing activities in their 2193
annual report to the City, as described in Exhibit D. 2194
5.11 DIVERSION REQUIREMENTS 2195
A. General. Contractor shall perform services under this Agreement in a manner that supports the 2196
City’s environmental goals. This includes, but is not limited to, providing services, education, and 2197
outreach to Customers and in the community that promote source reduction, Reuse, Recycling, 2198
Composting, and other methods to reduce landfill Disposal. Contractor is expected to suggest 2199
opportunities for Customers to reduce their Solid Waste Service Levels and increase the level of 2200
Recyclable Materials and Organic Materials service received whenever applicable. Diversion 2201
calculations shall be reviewed annually. It is the expectation of the City that Diversion, regardless 2202
of how measured, shall increase each year. 2203
B. Tonnage Diversion. The Diversion percentage shall be calculated as total Tons Diverted in a 2204
calendar year divided by total Tons Collected by Contractor under this Agreement in the calendar 2205
year, provided, however, that C&D Collected by Contractor, and materials Collected by Contractor 2206
in Drop Boxes as part of special cleanouts, shall be excluded from the Diversion percentage 2207
calculation (numerator and denominator). Subject to the foregoing exclusion, “total Tons 2208
Diverted” means (a) total Tons Collected by Contractor under this Agreement that is delivered to 2209
a Processing Facility for Processing, Recycling, Composting and/or Reuse, excluding Processing 2210
Residue that is Disposed, plus (if not already included in clause (a)) (b) total Tons of: 2211
• Mattresses, white goods, Used Motor Oil and Filters, batteries and CFLs, collected by 2212
Contractor and sent for Processing; 2213
• Material Diverted through Contractor’s distribution of home Composting kits (calculated as 2214
0.25 Tons per year of Organic Material Diverted for each household that is provided a kit at 2215
one of Contractor’s home Composting classes); 2216
• Material Diverted by Contractor through Environmental Days; 2217
• Edible Food donations by third parties, substantiated by Contractor; 2218
December 3, 2020 -56- City of Cupertino/Recology Franchise Agreement
• Clothing donations, where Contractor received the material and arranged donation to a non-2219
profit; 2220
• Food Scraps Collected and Transported for lawful use as animal feed pursuant to Section 1.2.F, 2221
substantiated by Contractor. 2222
The Tonnage Diversion percentage shall be calculated using the above methodology. The Parties 2223
mutually agree to designate the period of February 1, 2021 through December 31, 2021 as the 2224
“Tonnage Baseline Diversion Percentage.” In each subsequent calendar year, Contractor shall 2225
maintain at least the Tonnage Baseline Diversion Percentage. If Contractor fails to do so, then City 2226
may impose Liquidated Damages as provided in Exhibit F, and notwithstanding any other 2227
provision of this Agreement, such Liquidated Damages shall be City’s sole remedy for such failure. 2228
In accordance with the City’s zero waste policy, steadfast and ongoing efforts are required of the 2229
City’s franchisee to reach and maintain a minimum Residential and Commercial Tonnage waste 2230
Diversion rate of seventy-five percent (75%) with a goal of reaching and maintaining eighty 2231
percent (80%) by 2025 as calculated using CalRecycle’s Diversion rate equivalent formula, which 2232
is based on the per capita reporting-year calculation results provided by CalRecycle during the 2233
annual reporting process. 2234
C&D Diversion requirements are specified in 4.5.A.4. 2235
C. Subscription-Based Diversion. Contractor shall classify Commercial and Multi-Family Customers 2236
according to the SIC codes set forth in Exhibit L. 2237
Customer subscription level data for the period February 1, 2021 through December 31, 2021, 2238
shall be used to establish the “Subscription Baseline Diversion Percentage.” In each subsequent 2239
calendar year, Contractor shall maintain at least the Subscription Baseline Diversion Percentage. 2240
Contractor shall prepare Diversion reports in Excel in the format included in Exhibit L or as 2241
otherwise agreed with the City, and submit them as part of Contractor’s monthly report. 2242
ARTICLE 6. 2243
RECORD KEEPING AND REPORTING 2244
6.1 RECORD KEEPING 2245
Contractor shall maintain Customer contact data, Customer service, accounting, statistical, operational, 2246
programmatic, and other records, and associated documentation, related to its performance as shall be 2247
necessary to provide detailed and accurate reports under this Agreement, and to demonstrate compliance 2248
with this Agreement and Applicable Law. Unless otherwise required in this Article, Contractor shall retain 2249
all records and data required to be maintained by this Agreement in an accessible location and condition 2250
(which may include in the cloud) for the Term of this Agreement plus five (5) years after its expiration or 2251
earlier termination unless the City agrees to earlier disposition and except as provided below. Records 2252
and data shall be in chronological and organized form that is readily and easily interpreted to facilitate the 2253
flexible use of data to structure reports. Contractor’s records shall be stored in one or more central 2254
locations, physical or electronic, that can be readily accessed by Contractor. At a mutually agreed upon 2255
time during normal business hours, but within five (5) Working Days after a written request by the City 2256
December 3, 2020 -57- City of Cupertino/Recology Franchise Agreement
Contract Manager, Contractor shall make available to City all data and records: (i) required to be 2257
maintained under this Agreement; (ii) with respect to the matters covered by this Agreement; or, 2258
(iii) necessary for the City to fulfill obligations under Applicable Law in connection with this Agreement 2259
including, but not limited to, AB 939, AB 341, AB 1826, AB 876, AB 901, SB 1383, and other current or 2260
future Federal, State, or local regulations, as amended. Contractor shall permit the City, or its designee, 2261
to audit, examine, and make excerpts or transcripts from such data and records. Contractor shall maintain 2262
adequate record security to preserve records from events that can be reasonably anticipated such as a 2263
fire, theft, and an earthquake. Electronically-maintained data and records shall be protected and backed-2264
up. To the extent that Contractor utilizes its computer systems to comply with record keeping and 2265
reporting requirements under this Agreement, Contractor shall, on a monthly basis, save all system-2266
generated reports supporting those record keeping and reporting requirements in a static format (e.g., 2267
PDF) in order to provide an audit trail for all data required. 2268
If City requests Contractor data or records that constitute proprietary information or trade secrets, then 2269
Contractor may mark such information as “confidential” or “prop rietary.” City shall keep any information 2270
so marked confidential to the maximum extent permitted by applicable Federal, State, and local laws and 2271
regulations. If City receives a request for disclosure of such information, under applicable public records 2272
disclosure laws, City shall promptly notify Contractor in writing of such request, prior to any disclosure of 2273
such information by City. Within five (5) days of receiving City's notice, Contractor shall respond to City in 2274
writing, indicating whether the requested information should be disclosed or defended as exempt from 2275
disclosure under such laws. Contractor shall have the right to mount such defense at its own cost, 2276
including by filing suit in a court of competent jurisdiction. If Contractor does file such a suit, City agrees 2277
not to disclose such information except in accord with a judgment or order of the court, an agreement of 2278
the Parties, or as otherwise required by applicable Federal, State, and local laws and regulations. 2279
Eighteen (18) months prior to the termination date of this Agreement, and within ten (10) Working Days 2280
after a request by the City, including periodic requested updates prior to a transition, Contractor shall 2281
provide the City a complete record of their Customer lists, Service Levels, and routing on a computer disk 2282
or other format approved by the City’s Contract Manager in software mutually agreed upon by both the 2283
City and Contractor. 2284
The City views its ability to defend itself against Comprehensive Environmental Response, Compensation 2285
and Liability Act (CERCLA), and related litigation, as a matter of great importance. For this reason, the City 2286
needs to be able to prove where Collected Recyclable Materials, Organic Materials, Solid Waste, and C&D 2287
are taken for Transfer, Processing, or Disposal. Contractor shall maintain records that can establish where 2288
Recyclable Materials, Organic Materials, Solid Waste, and C&D Collected were Transferred, Processed, or 2289
Disposed. This provision shall survive the expiration or earlier termination of this Agreement. Contractor 2290
shall maintain these records for a minimum of ten (10) years beyond expiration or earlier termination of 2291
the Agreement. Contractor shall provide these records to the City upon request before the end of the 2292
record retention period in an organized and indexed manner. 2293
6.2 REPORT SUBMITTAL REQUIREMENTS 2294
Contractor shall submit monthly reports within forty (40) calendar days after the end of the calendar 2295
month and annual reports no later than sixty (60) calendar days after the end of each calendar year. 2296
Monthly and annual reports shall, at a minimum, include all data and information described in Exhibit D. 2297
December 3, 2020 -58- City of Cupertino/Recology Franchise Agreement
Contractor may propose report formats that are responsive to the objectives and audiences for each 2298
report. The format of each report shall be approved by the City Contract Manager, in their sole discretion. 2299
The City Contract Manager may, from time to time during the Term, review and request changes to 2300
Contractor’s report formats and content and Contractor shall not unreasonably deny such requests. 2301
Contractor shall submit all reports to the City Contract Manager electronically via e-mail using software 2302
acceptable to the City. The City reserves the right to require Contractor to maintain records and submit 2303
the reports required herein through use of a City-selected web-based software platform or cloud-based 2304
reporting system, at Contractor’s expense. 2305
The City reserves the right to require Contractor to modify the structure and/or format of reports and to 2306
provide additional reports or documents as the City Contract Manager reasonably determines to be 2307
required for the administration of this Agreement or compliance with Applicable Law. 2308
6.3 PERFORMANCE REVIEW AND AUDIT 2309
The City may conduct, and Contractor shall cooperate with, two (2) performance reviews and detailed 2310
financial audits, at any point during the Term of this Agreement at the City Contract Manager’s sole 2311
discretion, to verify Contractor has fulfilled its financial an d operational obligations under this Agreement. 2312
The purpose of such review and audit may at City discretion include, without limitation, to review 2313
Complaints, billings and establishment of Rates, Routes, and fee payments to the City, and to determine 2314
if Contractor has met the performance standards described in this Agreement (including, without 2315
limitation, direct services provided to Customers as described in Exhibit B, public education and outreach 2316
required in Exhibit C, recordkeeping and reporting as required in Exhibit D, and performance standards 2317
established in Exhibit F). The City may choose to enlist professional service providers to perform such 2318
review and audit. Contractor may not influence or control the City’s selection of professional service 2319
providers nor the specific review items covered by the review. Contractor shall cooperate with the City 2320
and its agents during the review and audit process. If any noncompliance with the Agreement is found, 2321
the City may direct Contractor to correct the inadequacies in accordance with Article 10 of this Agreement. 2322
At the City’s sole option, with at least thirty (30) calendar days’ prior written notification to Contractor, it 2323
may conduct a public hearing at which Contractor shall be present and shall participate, to review 2324
Contractor's performance and quality of service and provide for evaluation of technological and 2325
regulatory changes. The reports required by Exhibit D to this Agreement regarding Customer Complaints 2326
may be utilized as a basis for review as well as any findings from performance review and/or audits. 2327
Performance and service quality review hearings may be scheduled by the City at its discretion throughout 2328
the Term of the Agreement. 2329
ARTICLE 7. 2330
CITY FEES 2331
7.1 FRANCHISE FEE 2332
Contractor proposed, and the City accepted, Contractor payment of a Franchise Fee to be paid from 2333
Contractor’s profit. Contractor shall pay the Franchise Fee in monthly installments in an amount equal to 2334
twelve percent (12%) of Gross Receipts less the Solid Waste Fund Operations Fee paid by Contractor to 2335
the City under Section 7.2 of this Agreement and any other fees paid by Contractor under Section 7.3, if 2336
any. In addition, Contractor has offered, and the City has accepted, the provision of services to City 2337
December 3, 2020 -59- City of Cupertino/Recology Franchise Agreement
facilities under Exhibit B4 and City-sponsored or hosted special events under Section 4.6 at no additional 2338
cost as part of the franchise considerations. 2339
7.2 SOLID WASTE FUND OPERATIONS FEE 2340
Contractor shall pay a Solid Waste Fund Operations Fee to the City each month. The amount of the Solid 2341
Waste Fund Operations Fee shall be one hundred sixteen thousand three hundred forty-four dollars 2342
($116,344) per month in Rate Period One, one hundred nineteen thousand eight hundred thirty-four 2343
dollars ($119,834) per month in Rate Period Two, and one hundred twenty-three thousand four hundred 2344
twenty-none ($123,429) per month in Rate Period Three. In conjunction with the annual Rate adjustment 2345
process, the City shall determine the amount of the Fee for all subsequent Rate Periods under this 2346
Agreement based on its estimated actual costs for programs and services. This fee is to fund the City's 2347
cost to administer the Franchise Agreement and for Solid Waste-related programs and services, including 2348
staffing, public education materials and events, Recyclable Materials and Organic Materials programs, 2349
street sweeping to clean streets after Curbside Collection of debris, and any other programs that the City 2350
implements to facilitate the safe Disposal or Reuse and Recycling of used material. This fee shall be 2351
considered an allowable cost of business not subject to profit mark-up and may be included in the 2352
adjustment of Rates as described in Exhibit E. 2353
7.3 ADJUSTMENT TO FEES 2354
The City may set other fees or adjust the fees established in this Article from time-to-time during the Term 2355
of this Agreement and such adjustments shall be included in the adjustment of Rates described in Exhibit 2356
E. 2357
7.4 PAYMENT SCHEDULE AND LATE FEES 2358
Within twenty (20) calendar days after the end of each calendar month, during the Term of this 2359
Agreement, and with accompanying documentation in a format approved by the City Contract Manager, 2360
Contractor shall remit to the City the monthly prorated amount of all fees as described in this Article, net 2361
of any City Payments owed Contractor as provided in Sections 8.2.B and 8.2.C. Such fees shall be sent or 2362
delivered to the City Contract Manager. If such remittance is not paid to the City on or before the 2363
twentieth (20th) calendar day following the end of a calendar month, the amount past due shall be subject 2364
to a delinquency penalty of one and one half percent (1.5%), which attaches on the first day of 2365
delinquency. An additional one and one half percent (1.5%) delinquency penalty shall apply for each 2366
additional month the payment remains delinquent. 2367
Each monthly remittance to the City shall be accompanied by a statement listing the amount of each fee 2368
paid; calculation of each fee; and, statement of Gross Receipts that separately identifies revenues used as 2369
basis for payment of each fee, if applicable, by Customer Type for the period collected from all operations 2370
conducted or permitted by this Agreement. The City Contract Manager may, at any time during the Term, 2371
request a detailed calculation of Gross Receipts that may include, but is not necessarily limited to, the 2372
number of Customers charged at each Service Level and Rate for each billing period. Contractor shall 2373
maintain all supporting documents and calculations for each payment made to the City as required by 2374
Article 6. 2375
The City Contract Manager may, at any time during the Term, perform an audit of Contractor’s billings 2376
and payment of fees under this Agreement. Contractor shall cooperate with the City Contract Manager in 2377
any such audit. Should the City or its agent perform this review and identify billing errors or other errors 2378
December 3, 2020 -60- City of Cupertino/Recology Franchise Agreement
in payment of fees valued at one percent (1%) or more of Gross Receipts for the period reviewed, 2379
Contractor shall, in addition to compensating City for lost fees, reimburse the City’s actual cost of the 2380
review. 2381
7.5 PROCUREMENT REIMBURSEMENT FEE 2382
Within five (5) Business Days after the Effective Date, Contractor shall pay the City two hundred thousand 2383
dollars ($200,000) to reimburse the City for the cost of preparing the RFP, reviewing Contractor’s Proposal, 2384
and negotiating this Agreement. Such amount shall not be included in the calculation or adjustment of 2385
Rates under this Agreement. 2386
7.6 OTHER MONIES DUE TO CITY 2387
Contractor shall retain certification, under the State’s Curbside Supplemental Payment program, to 2388
operate a curbside recycling program in the City, and shall submit all required reports to receive monies 2389
under such State program with respect to recyclables collected by Contractor within the City. Each year, 2390
at its discretion, the City may require Contractor to remit suc h monies to the City. Should City require such 2391
remittance, City may at its discretion, use some or all of such monies as a credit towards any City Payment 2392
due Contractor as provided in Article 8 and Exhibit E. Contractor’s failure to maintain such certification 2393
and file such reports, within the timelines and content requirements of the program, shall result in 2394
Contractor’s payment of the amount designated by the State for that year directly to the City without the 2395
benefit of Contractor receiving payment from the State program. 2396
ARTICLE 8. 2397
CONTRACTOR'S COMPENSATION 2398
8.1 GENERAL 2399
Contractor’s Compensation for performance of all its obligations under this Agreement shall be the sum 2400
of Gross Receipts and City Payments. Contractor's Compensation shall be the full, entire and complete 2401
compensation due to Contractor pursuant to this Agreement for all labor, equipment, materials and 2402
supplies, Transfer, Processing and Disposal fees, City Fees, taxes, insurance, bonds, overhead, operations, 2403
profit, and all other things necessary to perform all the services required by this Agreement in the manner 2404
and at the times prescribed. Nothing herein shall obligate the City to provide any compensation to 2405
Contractor beyond City Payments. 2406
If Contractor’s actual costs, including fees due to the City, exceed the total of Gross Receipts and City 2407
Payments, Contractor shall not be compensated for the difference. If Contractor’s actual costs, including 2408
fees due to the City, are less than the total of Gross Receipts and City Payments, Contractor shall retain 2409
the difference. 2410
Under this Agreement, Contractor shall have the right to charge and collect from Customers up to the 2411
maximum Rates in Exhibit G3 (as adjusted from time to time in accordance with this Agreement) for 2412
provision of services to Customers. Maximum Rates for Rate Period One are based on Contractor’s 2413
Proposal. Contractor’s proposed costs and operating assumptions for Rate Period One are presented in 2414
Exhibit G2. 2415
The Approved Recyclable Materials Processing Facility shall retain revenues received for the sale of 2416
December 3, 2020 -61- City of Cupertino/Recology Franchise Agreement
Recyclable Materials including California Redemption Value revenues. Such revenues have been 2417
considered in Contractor’s Proposal and City’s approval of maximum Rates for services provided under 2418
this Agreement. Neither Contractor nor the Approved Recyclable Materials Processing Facility are entitled 2419
to funds available through the Department of Resources Recycling and Recovery (CalRecycle) through its 2420
“City/County Payment Program” pursuant to Section 14581(a)(3)(A) of the California Beverage Container 2421
Recycling and Litter Reduction Act. The City Contract Manager may require Contractor to provide 2422
information to assist City in preparing the requests or applications to CalRecycle for disbursement of such 2423
monies to the City. 2424
8.2 CONTRACTOR’S COMPENSATION AND ANNUAL ADJUSTMENTS 2425
A. General. Table 8-1 summarizes how Contractor’s Compensation will be determined for each Rate 2426
Period, assuming no circumstances arise which under the provisions of this Agreement would 2427
require application of the cost-based methodology in Rate Periods that are designated as index-2428
based years. 2429
Table 8 -1 Default Method for Determining Contractor Compensation for each Rate Period 2430
Rate Period
Default
Rate Adjustment
Methodology
Agreement
Section
City Fees
(Section 7.1 &
7.2)
Other City Fees
(Section 7.3)
Rate Periods 1, 2 & 3 Fixed Rate and City Fee Increases – Refer to Section 8.2.B and Refer to Table 8-2
Contractor Compensation for Rate Periods One, Two and Three
Rate Period 4 Cost-Based Refer to Exhibit
E2
Refer to Exhibit
E2 Section 2.D
(1)
Rate Periods 5, 6 & 7 Multi-Index Refer to Exhibit
E1
Refer to Exhibit
E1 Section 2.E
(1)
Rate Period 8 Cost-Based Refer to Exhibit
E2
Refer to Exhibit
E2 Section 2.D
(1)
Rate Periods 9 & 10 Multi-Index Refer to Exhibit
E1
Refer to Exhibit
E1 Section 2.E
(1)
If Agreement extended per Section 2.1
Rate Period 11 Cost-Based Refer to Exhibit
E2
Refer to Exhibit
E2 Section 2.D
(1)
Rate Period 12, 13, 14 & 15 Multi-Index Refer to Exhibit
E1
Refer to Exhibit
E1 Section 2.E
(1)
(1) The City may set other fees or adjust the fees established in this Article from time-to-time during the Term of this Agreement. 2431
Contractor’s Compensation for Rate Period One, Two and Three is as specified in Section 8.2.B. 2432
Beginning with Rate Period Four, the City Contract Manager shall be responsible for approving 2433
adjustment to the Contractor’s Compensation as described in this Article and in Exhibit E. 2434
B. Contractor’s Compensation for Rate Periods One, Two, and Three 2435
1. Maximum Rates for Rate Periods One, Two, and Three. Maximum Rates for Rate Period One, 2436
which are presented in Exhibit G3, together with the City Payments for each such Rate Period, 2437
were proposed by Contractor and approved by the City along with the Agreement. Maximum 2438
Rates for Rate Period One shall be effective from February 1, 2021 through January 31, 2022. 2439
December 3, 2020 -62- City of Cupertino/Recology Franchise Agreement
Maximum Rates for Rate Period Two shall be the Maximum Rates for Rate Period One, as 2440
adjusted by the percentage increases set forth in Table 8-2 below. Maximum Rates for Rate 2441
Period Two shall be effective from February 1, 2022 through January 31, 2023. Maximum 2442
Rates for Rate Period Three shall be the Maximum Rates for Rate Period Two, as adjusted by 2443
the percentage increases set forth in Table 8-2 below. Maximum Rates for Rate Period Three 2444
shall be effective from February 1, 2023 through January 31, 2024. Contractor shall provide 2445
Rate Period Two and Three rate tables for City review to ensure mathematical compliance 2446
with the calculation of Contractor Compensation as provided in Table 8-2 of Section 8.2.B. 2447
Table 8 -2 Contractor Compensation for Rate Periods One, Two and Three 2448
Service Sector Rate Period 1*
Rate Adjustment
Rate Period 2
Rate Adjustment
Rate Period 3
Rate Adjustment
Single-Family Residential Services:
All Material Streams - Carts 9.7% 9.6% 9.6%
Multi-Family Residential and Commercial:
Solid Waste - Carts and Bins 0.1% 4.7% 5.0%
Multi-Family Residential and Commercial:
Recyclable Materials - Carts and Bins 24.0%** 58.2% 39.0%
Multi-Family Residential and Commercial:
Organic Materials - Carts and Bins 0.1% 4.7% 5.0%
Commercial Drop Boxes:
All Material Streams 3.9% 6.5% 5.0%
Rate Period 1 Rate Period 2 Rate Period 3
Annual City Payment to Recology $686,072 $957,082 $840,405
* Rate Period One Rate adjustment is relative to the Rates effective November 1, 2020 and as approved by the City under its 2449
previous agreement with Contractor. 2450
** Rate Period One establishes a charge for Recyclable Materials Collection service for Multi-Family and Commercial Carts and 2451
Bins of 24.0% of the Rate to service Multi-Family Residential and Commercial Solid Waste Carts or Bins of equivalent size. 2452
2. City Payments for Rate Periods One, Two, and Three. City shall pay Contractor monthly 2453
amounts for Rate Periods One, Two, and Three equal to one-twelfth (1/12th) of the annual 2454
City Payment amounts show in Table 8-2 above. Such payment shall be effected by Contractor 2455
netting the monthly amount against monthly payments of City Fees. 2456
3. Changes in Rate Periods One, Two and Three. Notwithstanding the foregoing or any other 2457
provision of this Agreement, if before Rate Period Four City (i) sets other City Fees or adjusts 2458
existing City Fees under Section 7.3, (ii) directs or requires Contractor to use a Designated 2459
Facility under Section 3.2, or (iii) initiates a change in scope under Section 3.5, then 2460
Contractor’s Compensation shall be appropriately adjusted to reflect the increased or 2461
decreased costs to Contractor, and the parties shall negotiate such adjustment in good faith. 2462
C. Contractor’s Compensation for Subsequent Rate Periods. Contractor’s Compensation for 2463
subsequent Rate Periods, beginning with Rate Period Four, shall be adjusted annually in 2464
accordance with this Section 8.2 and Exhibit E. For each subsequent Rate Period, calculation of 2465
Contractor Compensation shall include City determination of whether a City Payment is 2466
necessary, and as applicable, the annualized amount of such City Payment for the given Rate 2467
Period. City shall pay the annualized amount of the City Payment to Contractor in equal monthly 2468
installments throughout the given Rate Period, one-twelfth (1/12th) of the annual amount each 2469
month, and such payments shall be effected by Contractor netting the monthly amount against 2470
December 3, 2020 -63- City of Cupertino/Recology Franchise Agreement
monthly payments of City Fees. Regardless of the Rate Period and whether the applicable Rate 2471
adjustment is index-based or cost-based, Contractor may propose that the dollar value of the 2472
calculated adjustment to Contractor’s Compensation be adjusted among sector(s) and/or 2473
material stream(s). 2474
Index-based Rate adjustments, which are described in Exhibit E1, involve use of various cost 2475
adjustment factors (such as the percentage change in the consumer price index and changes in 2476
tonnage and tipping fees) to calculate adjustments to the Rates. The index-based Rate Adjustment 2477
will be the default method used to determine Rates in Rate Periods Five, Six, Seven, Nine, and Ten 2478
(and, if the Term is extended, Twelve, Thirteen, Fourteen, and Fifteen). The index-based Rate 2479
adjustment calculations shall be performed in strict conformance to the procedures described in 2480
Exhibit E1. 2481
Cost-based Rate adjustments, which are described in Exhibit E2, involve review of Contractor’s 2482
actual costs and revenues and projection of costs and revenues for the coming Rate Period. The 2483
cost-based Rate adjustment will be used in Rate Period Four and Eight (and, if the Term is 2484
extended, Eleven). The cost-based Rate adjustment calculations shall be performed in strict 2485
conformance to the procedures described in Exhibit E2. 2486
Notwithstanding the foregoing, the cost-based methodology described in Exhibit E2 shall be used 2487
to set Rates as provided in Sections 3.2, 8.2.D and 8.3 of the Agreement, and the third paragraph 2488
of Section 1 of Exhibit E1. 2489
D. Rate Structure. The City may, at any time during the Term of this Agreement and in its sole 2490
discretion, change the relationship of individual maximum Rates in comparison with other 2491
maximum Rates. Any such changes would occur in conjunction with the annual Rate adjustment 2492
process described in Section 8.2.C or in conjunction with a Rate adjustment resulting from an 2493
extraordinary Rate adjustment in accordance with Section 8.3. Changes to the Rates charged 2494
under the new structure shall be calculated in such a way that the revised Rate structure 2495
generates at least the same amount of total revenue when the current number of accounts at 2496
each Service Level are multiplied by the Rates charged for each Service Level and the total for all 2497
Service Levels are summed. If Contractor can provide evidence reasonably satisfactory to the City 2498
Contract Manager, based on at least six (6) months of data after a change in the Rate structure 2499
under this paragraph, that the change resulted in migration that on an annualized basis resulted 2500
in at least fifty thousand dollars ($50,000) in lost revenue to Contractor, then Contractor may elect 2501
to have the next annual Rate adjustment be a Cost-Based Adjustment pursuant to Exhibit E2. As 2502
part of such adjustment, in addition to establishing Rates for the next Rate Period, Contractor 2503
shall be entitled to recover the Parties’ reasonable good faith estimate of the lost revenue to 2504
Contractor resulting from such migration. 2505
E. Miscellaneous Rates. If at any time during the Term of the Agreement, Contractor determines 2506
the need to add a Rate that does not appear on the Rate schedule in Exhibit G3, Contractor may 2507
propose and the City may approve a maximum Rate. For example, if a Customer requires 2508
Collection of Organic Materials in a fifteen (15) cubic yard Compactor five (5) times per week and 2509
the Rate schedule does not include this level of service, Contractor may propose and the City may 2510
approve a Rate for this level of service. City Council shall approve such Rate prior to Contractor 2511
billing any Customer under that rate. 2512
December 3, 2020 -64- City of Cupertino/Recology Franchise Agreement
8.3 EXTRAORDINARY RATE ADJUSTMENTS 2513
The City does not guarantee stability in the cost of providing services; changes in facility conditions or 2514
availability of facilities; the Service Levels requested by Customers; the quantity or composition of 2515
materials subject to this Agreement; the business, legal, policy, or regulatory environment in which 2516
Contractor operates; availability of labor; or other similar matters. The Parties acknowledge that these 2517
inputs will be impacted during the Term of the Agreement based on a number of unpredictable factors, 2518
including the state of the economy; the number of residents and the number and type of businesses; 2519
participation levels of Residential and Commercial Customers in Diversion programs; changes in 2520
technology; and impacts of new bans or policies on the use and Disposal of materials, product 2521
stewardship, and extended producer responsibility. City may be directly or indirectly responsible for such 2522
impacts, including through its on-going efforts to increase Diversion. It is understood that Contractor 2523
expressly accepts the risk (and reward) for changes in such factors over the Term, unless other provisions 2524
of this Agreement provide specific consideration for or alternatives related to such factors. 2525
Except as provided in Section 3.2, the sole potential basis for Contractor to seek an extraordinary Rate 2526
adjustment in excess of the annual adjustment described in Section 8.2 shall be either: (A) a Change in 2527
Law after the Effective Date; or (B) City-directed change in scope pursuant to Section 3.5, if the Parties do 2528
not mutually agree on the Rate adjustment as provided in such section. 2529
In either of the above circumstances, Contractor may petition the City for an extraordinary Rate 2530
adjustment to the extent the Change in Law increases Contractor’s costs of performing its obligations 2531
under this Agreement. However, Contractor shall not request an adjustment under this Section 8.3 unless 2532
the total amount requested exceeds fifty thousand dollars ($50,000) in at least one (1) Rate Period. For 2533
purposes of determining whether the threshold is met, Contractor may aggregate the cost of multiple 2534
Changes in Law and/or changes in scope. 2535
Contractor shall prepare an application for the extraordinary Rate adjustment. Such submittal shall be 2536
prepared in compliance with the procedures described in Exhibit E2 and shall provide all information 2537
reasonably requested by the City Contract Manager specific to the nature of the request being made. 2538
Contractor shall pay all reasonable costs incurred by the City, including the costs of outside accountants, 2539
attorneys, and/or consultants, in order to make a determination of the reasonableness of the requested 2540
Rate adjustment. Such costs paid by Contractor shall be recoverable as “other adjustments” in the 2541
adjustment granted under this Section 8.3, or if no such adjustment is granted, the earliest possible annual 2542
Rate adjustment. The application shall clearly document the reason for the proposed adjustment, include 2543
calculation of the proposed Rate adjustments, and provide supporting documentation. 2544
In the event of such an application for extraordinary Rate increase, it is understood that Contractor shall 2545
have the burden of demonstrating to the reasonable satisfaction of the City that the failure of the City to 2546
adjust Rates will result in Contractor’s financial loss or failure to achieve reasonable profitability due to 2547
the Change in Law or City-directed change in scope, where reasonable profitability is the profit level 2548
determined by applying the Operating Ratio to Forecasted Total Annual Cost of Operations as provided in 2549
Exhibit E2. If Contractor meets the above burden, the City shall approve the adjustment of Rates so as to 2550
meet such profit level. Contractor will have to demonstrate fin ancial loss or a failure to achieve reasonable 2551
profitability by allowing for the City Contract Manager review of financial statements and supporting 2552
documentation. 2553
The City Contract Manager shall have the right to request any other information that they, in their sole 2554
but reasonable judgment, determine is necessary to establish the reasonableness or accuracy of 2555
December 3, 2020 -65- City of Cupertino/Recology Franchise Agreement
Contractor’s request for an extraordinary Rate increase. Such information may include, but is not 2556
necessarily limited to, cost of service information required for the City to conduct analysis to satisfy the 2557
requirements of applicable Federal, State, and local laws and regulations related to municipal rate 2558
regulation. Contractor’s failure to fully cooperate in a timely manner with any reasonable request for 2559
information by the City Contract Manager may result in delay in the approval of the request for an 2560
extraordinary Rate adjustment. 2561
For purposes of this Section 8.3: (i) the Transfer, Processing, Composting, or Disposal services provided 2562
under this Agreement that are performed by any subcontractor or Affiliate of Contractor, shall be deemed 2563
to be services performed by Contractor under this Agreement; (ii) the costs incurred by any such 2564
subcontractor or Affiliate in performing such services shall be deemed to be costs of Contractor in 2565
performing this Agreement; and (iii) any Change in Law or City-directed change in scope affecting any such 2566
subcontractor or Affiliate shall be deemed to be a Change in Law or City-directed change in scope affecting 2567
Contractor. 2568
ARTICLE 9. 2569
INDEMNITY, INSURANCE, AND PERFORMANCE 2570
BOND 2571
9.1 INDEMNIFICATION 2572
A. General. Contractor shall indemnify, defend with counsel reasonably acceptable to the City, and 2573
hold harmless (to the full extent permitted by law) the City and its officers, officials, employees, 2574
volunteers, and agents (collectively, “Indemnitees”) from and against any and all claims, liability, 2575
loss, injuries, damage, expense, and costs (including without limitation costs and fees of litigation, 2576
including attorneys’ and expert witness fees and costs) (collectively, “Losses”) of every kind and 2577
description arising out of or in connection with Contractor’s performance under this Agreement, 2578
or its failure to comply with any of its obligations contained in the Agreement, except to the extent 2579
such Losses were caused by the sole negligence or willful misconduct of the City. 2580
B. Excluded Waste. Contractor acknowledges that it is responsible for compliance during the entire 2581
Term of this Agreement with all Applicable Laws. Contractor shall not Collect, store, Transport, 2582
Process, use, or Dispose of any Excluded Waste except in strict compliance with all Applicable 2583
Laws. 2584
In the event that Contractor negligently or willfully mishandles Excluded Waste in the course of 2585
carrying out its activities under this Agreement, Contractor shall at its sole expense promptly take 2586
all investigatory and/or remedial action reasonably required for the remediation of such 2587
environmental contamination. Prior to undertaking any investigatory or remedial action, 2588
however, Contractor shall, if practicable, first obtain the City’s approval of any proposed 2589
investigatory or remedial action. Should Contractor fail at any time to take such action promptly 2590
after notice from City, the City may undertake such action at Contractor’s sole cost and expense, 2591
and Contractor shall reimburse the City for all such expenses within thirty (30) calendar days after 2592
being billed for those expenses, and any amount not paid within that thirty (30) calendar day 2593
period shall thereafter be deemed delinquent and subject to the delinquent fee payment 2594
provision of Section 7.4. These obligations are in addition to any defense and indemnity 2595
December 3, 2020 -66- City of Cupertino/Recology Franchise Agreement
obligations that Contractor may have under this Agreement. The provisions of this Section shall 2596
survive the termination or expiration of this Agreement. 2597
Notwithstanding the foregoing, Contractor’s duties under this Section 9.1.B shall not extend to 2598
any claims arising from the Disposal of Solid Waste at the Designated Disposal Facility, including, 2599
but not limited to, claims arising under CERCLA, unless such claim is a direct result of Contractor’s 2600
negligence or willful misconduct or Contractor owns or operates the Designated Disposal Facility. 2601
C. Environmental Indemnity. Contractor shall indemnify, defend with counsel reasonably 2602
acceptable to City, and hold harmless (to the full extent permitted by law) the Indemnitees from 2603
and against Losses of every kind and description attributable to the negligence or willful 2604
misconduct of Contractor in handling Excluded Waste. 2605
D. Related to AB 939, AB 341, AB 1826, and SB 1383. Contractor’s duty to defend and indemnify 2606
herein includes all fines and/or penalties imposed by CalRecycle, if the requirements of AB 939, 2607
AB 341, AB 1826, and/or SB 1383 are not met with respect to the waste stream Collected, 2608
Transported, and/or Processed by Contractor under this Agreement, and such failure is: (i) due to 2609
the failure of Contractor to meet its obligations under this Agreement; or, (ii) due to Contractor 2610
delays in providing information that prevents Contractor or the City from submitting reports to 2611
regulators in a timely manner. 2612
E. Related to Proposition 218. Should there be a Change in Law, including, but not limited to, a new 2613
judicial interpretation of Article XIII C and D of the California Constitution (commonly Proposition 2614
218), and such Change in Law directly, materially, and adversely impacts Rates for the services 2615
established in accordance with this Agreement, Contractor agrees to meet and confer with the 2616
City to discuss the impact of such Change in Law on either Party’s ability to perform under this 2617
Agreement. 2618
The City shall not be in default of this Agreement if it is determined by a court of competent 2619
jurisdiction that the City lacks the authority to set new maximum Rates or increase maximum 2620
Rates as contemplated under this Agreement, or if a majority protest under Proposition 218 2621
prevents City from doing so. In any such event, Contractor’s obligations under this Agreement 2622
shall be reduced so as to reduce Contractor’s costs of performing this Agreement by a dollar 2623
amount equivalent to the dollar amount of the Rate adjustment that could not be implemented. 2624
The Parties shall negotiate in good faith to determine the change in Contractor’s obligations, and 2625
shall use best efforts to complete such negotiation, and reflect the mutually-agreed changes in a 2626
written amendment to this Agreement, within ninety (90) days after the court decision or majority 2627
protest. The change shall be consistent with the court’s decision, if any, the majority protect, if 2628
any, and applicable Federal, State, and local laws and regulations. 2629
Nothing herein is intended to imply that California Constitution, Articles XIIIC or XIIID, apply to 2630
Rates established for services provided under this Agreement; rather this Section is provided 2631
merely to allocate risk of an adverse judicial interpretation between the Parties. 2632
This provision (i.e., Section 9.1) will survive the expiration or earlier termination of this Agreement 2633
and shall not be construed as a waiver of rights by the City to contribution or indemnity from third 2634
parties. 2635
December 3, 2020 -67- City of Cupertino/Recology Franchise Agreement
9.2 INSURANCE 2636
A. General Requirements. Contractor shall, at its sole cost and expense, maintain in effect at all 2637
times during the Term of this Agreement not less than the following coverage and limits of 2638
insurance: 2639
B. Coverages and Requirements. During the Term of this Agreement, Contractor shall at all times 2640
maintain, at its expense, the following coverages and requirements. The comprehensive general 2641
liability insurance shall include broad form property damage insurance. 2642
1. Minimum Coverages. Insurance coverage shall be with limits not less than the following: 2643
Comprehensive General Liability – $10,000,000 combined single limit per occurrence for 2644
bodily injury, personal injury, and property damage. 2645
Automobile Liability – $10,000,000 combined single limit per accident for bodily injury and 2646
property damage (include coverage for Hired and Non-owned vehicles). 2647
Workers’ Compensation – Statutory Limits/Employers’ Liability - $1,000,000/accident for 2648
bodily injury or disease. 2649
Employee Blanket Fidelity Bond – $500,000 per employee loss covering dishonesty, forgery, 2650
alteration, theft, disappearance, and destruction (inside or outside). 2651
2. Additional Insured. The City, its officers, officials, employees, volunteers, and agents shall be 2652
named as additional insured on all but the workers’ compensation coverage. 2653
3. Said policies shall remain in force through the life of this Agreement and, shall be payable on 2654
a “per occurrence” basis unless the City’s Risk Manager specifically consents in writing to a 2655
“claims made” basis. For all “claims made” coverage, in the event that Contractor changes 2656
insurance carriers, Contractor shall purchase “tail” coverage or otherwise provide for 2657
continuous coverage covering the Term of this Agreement and not less than three (3) years 2658
thereafter. Proof of such “tail” or other continuous coverage shall be required at any time 2659
that Contractor changes to a new carrier prior to receipt of any payments due. 2660
4. Contractor shall declare all aggregate limits on the coverage before commencing performance 2661
of this Agreement, and the City’s Risk Manager reserves the right to require higher aggregate 2662
limits to ensure that the coverage limits required for this Agreement as set forth above are 2663
available throughout the performance of this Agreement. 2664
5. The deductibles or self-insured retentions are for the account of Contractor and shall be the 2665
sole responsibility of Contractor. 2666
6. Each insurance policy shall provide or be endorsed to state that coverage shall not be 2667
suspended, voided, canceled by either Party, reduced in coverage or in limits except after 2668
endeavoring to provide thirty (30) calendar days’ prior written notice to the City Contract 2669
Manager and ten (10) Business Days for delinquent insurance premium payments). 2670
7. Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A-VII, 2671
unless otherwise approved by the City Risk Manager. 2672
December 3, 2020 -68- City of Cupertino/Recology Franchise Agreement
8. The policies shall cover all activities of Contractor, its officers, employees, agents and 2673
volunteers arising out of or in connection with this Agreement. 2674
9. For any claims relating to this Agreement, Contractor’s Comprehensive General Liability and 2675
Automobile Liability insurance coverage shall be primary, including as respects the City, its 2676
officers, officials, employees, volunteers, and agents. Any insurance maintained by the City 2677
shall apply in excess of, and not contribute with, insurance provided by Contractor’s liability 2678
insurance policy. 2679
10. Contractor shall waive all rights of subrogation against the City, its officers, officials, 2680
employees, volunteers, and agents. 2681
C. Endorsements. Contractor shall provide copies of the following endorsements or other 2682
documentation satisfactory to the City: (1) additional insured endorsement to each liability policy, 2683
explicitly adding each of the additional insureds specified hereunder, (2) waiver of subrogation, 2684
and (3) insurance is primary and not contributing with any other insurance or self-insurance 2685
programs maintained by the City and/or the other additional insureds to each liability policy. 2686
D. Renewals. During the Term of this Agreement, Contractor shall furnish the City Contract Manager 2687
with certificates or original endorsements reflecting renewals, changes in insurance companies, 2688
and any other documents reflecting the maintenance of the required coverage throughout the 2689
entire Term of this Agreement. 2690
E. Workers' Compensation. Contractor shall provide workers’ compensation coverage as required 2691
by State law, and shall comply with Section 3700 of the State Labor Code. 2692
F. Evidence of Coverage. Contractor will deliver to the City Contract Manager certificates of 2693
insurance, original endorsements, schedules and other evidence of coverage required by this 2694
Agreement and/or requested by the City at the following times: (1) on or before the Effective 2695
Date; (2) promptly upon renewal of policies; and, (3) within ten (10) days after the City Contract 2696
Manager’s request. The certificates and endorsements are to be signed by a Person authorized 2697
by that insurer to bind coverage on its behalf. All certificates and endorsements are to be received 2698
by, and are subject to the approval of, the City Risk Manager. 2699
G. Insurance Coverage Requirements for Subcontractors. Unless otherwise approved in advance in 2700
writing by the City Contract Manager, Contractor will ensure either: (1) Contractor is maintaining 2701
insurance required by this Section covering the activities of Subcontractors hereunder; or, (2) 2702
Subcontractors are maintaining their own insurance required by this Section covering their 2703
activities hereunder. At the City Contract Manager’s request, Contractor will promptly provide 2704
copies of evidence of Subcontractor’s coverage. 2705
9.3 PERFORMANCE BOND 2706
Within seven (7) calendar days after the City’s notification to Contractor that the City has executed this 2707
Agreement, Contractor shall file with the City a bond, payable to the City, securing Contractor's 2708
performance of its obligations under this Agreement and such bond shall be renewed annually if necessary 2709
so that the performance bond is maintained at all times during the Term. The principal sum of the bond 2710
shall be four million dollars ($4M) and shall be adjusted to be effective for Rate Period Four (4), Rate 2711
Period Seven (7), and Rate Period Ten (10) so that the bond amount equals three (3) months of the prior 2712
December 3, 2020 -69- City of Cupertino/Recology Franchise Agreement
Rate Period’s annual Gross Receipts. The bond shall be executed as surety by a corporation authorized to 2713
issue surety bonds in the State of California that has a rating of A or better in the most recent edition of 2714
Best’s Key Rating Guide, and that has a record of service and financial condition reasonably satisfactory 2715
to the City. The bond shall be in the form attached as Exhibit I. 2716
ARTICLE 10. 2717
DEFAULT AND REMEDIES 2718
10.1 EVENTS OF DEFAULT 2719
Unless cured as provided in Section 10.2, each of the following shall constitute an event of default. 2720
A. Fraud or Deceit. Contractor practices, or attempts to practice, any fraud or deceit upon the City. 2721
B. Insolvency or Bankruptcy. Contractor becomes insolvent, unable or unwilling to pay its debts 2722
generally as they become due, or upon listing of an order for relief in favor of Contractor in a 2723
bankruptcy proceeding. 2724
C. Failure to Maintain Coverage. Contractor fails to provide or maintain in full force and affect the 2725
workers' compensation, liability, or indemnification coverage as required by this Agreement. 2726
D. Violations of Regulation. Contractor violates any orders or filings of any regulatory body having 2727
authority over Contractor relative to this Agreement, provided that Contractor may contest any 2728
such orders or filings by appropriate proceedings conducted in good faith, in which case no breach 2729
or default of this Agreement shall be deemed to have occurred unless and until the regulatory 2730
body or court determines Contractor violated such order or filing. 2731
E. Violations of Applicable Law. Contractor violates Applicable Law relative to this Agreement. 2732
F. Failure to Perform Direct Services. Contractor ceases to provide Collection, Transportation, or 2733
Processing services, required to be provided by Contractor or its Subcontractors, as required 2734
under this Agreement for a period of two (2) consecutive calendar days or more, for any reason 2735
within the control of Contractor. 2736
G. Failure to Pay or Report. Contractor fails to make any payments to the City required under this 2737
Agreement including payment of City Fees or Liquidated Damages and/or refuses to provide the 2738
City with required information, reports, and/or records in a timely manner as provided for in the 2739
Agreement. 2740
H. Acts or Omissions. Any other act or omission by Contractor that violates the terms, conditions, 2741
or requirements of this Agreement, or applicable Federal, State, and local laws and regulations 2742
and that is not corrected or remedied within the time set forth in the City’s written notice of the 2743
violation or, if Contractor cannot reasonably correct or remedy the breach within the time set 2744
forth in such notice, if Contractor should fail to commence to correct or remedy such violation 2745
within the time set forth in such notice and diligently effect such correction or remedy thereafter. 2746
The time set forth in the City’s notice shall not be less than the applicable period provided for in 2747
Section 10.2. 2748
December 3, 2020 -70- City of Cupertino/Recology Franchise Agreement
I. False, Misleading, or Inaccurate Statements. Any representation or disclosure made to the City 2749
by Contractor in connection with or as an inducement to entering into this Agreement, or any 2750
future amendment to this Agreement, which proves to be false or misleading in any material 2751
respect as of the time such representation or disclosure is made, whether or not any such 2752
representation or disclosure appears as part of this Agreement; and, any Contractor-provided 2753
report containing a material misstatement, material misrepresentation, or a material omission of 2754
fact or content explicitly defined by the Agreement, excepting non-numerical typographical and 2755
grammatical errors. 2756
J. Seizure or Attachment. Any seizure of, attachment of, or levy on, Contractor’s operating 2757
equipment used in performance of this Agreement. 2758
K. Criminal Activity. Contractor, its officers, managers, or employees are found guilty of criminal 2759
activity related directly or indirectly to performance of this Agreement or any other agreement 2760
held with the City. 2761
L. Assignment without Approval. Contractor transfers or assigns this Agreement without the 2762
expressed written approval of the City unless the assignment is permitted without City approval 2763
pursuant to Section 12.6. 2764
M. Failure to Provide Proposal or Implement Change in Service. Contractor fails to provide a 2765
proposal in response to a City-directed change in scope (pursuant to Section 3.5) or fails to 2766
implement a mutually-approved, City-directed change in scope. 2767
N. Failure to Achieve Processing Standards. Contractor fails to achieve the Processing standards 2768
specified in Sections 4.1 and 4.2, including achievement of minimum Organic Waste recovery 2769
rates, which are essential for the City to achieve SB 1383 compliance. 2770
The City shall make reasonable efforts to provide Contractor written notice of default within seven (7) 2771
calendar days after the City’s first knowledge of Contractor’s default. 2772
10.2 OPPORTUNITY TO CURE 2773
Contractor shall be given ten (10) Business Days after written notification by the City to cure any default 2774
which, in the City Contract Manager’s sole opinion, creates a potential public health and safety threat. 2775
Contractor shall be given ten (10) Business Days after written notification by City to cure any default 2776
arising under Section 10.1.C, E, F, I, and J; however, the City shall not be obligated to provide Contractor 2777
with a notice and cure opportunity if Contractor has committed the same or similar breach/default, and 2778
City provided Contractor written notification of such breach/default, within the previous twenty-four (24) 2779
month period. 2780
Contractor shall be given thirty (30) calendar days after written notification by the City to cure any other 2781
default (which is not otherwise required to be cured within ten (10) Business Days); however, the City 2782
shall not be obligated to provide Contractor with a notice and cure opportunity if Contractor has 2783
committed the same or similar breach/default, and City provided Contractor written notification of such 2784
breach/default, within the previous twenty-four (24) month period. 2785
December 3, 2020 -71- City of Cupertino/Recology Franchise Agreement
Notwithstanding the foregoing, if a breach/default is curable, but Contractor cannot reasonably cure the 2786
breach/default within the above-mentioned time frames, then the cure period shall be extended for a 2787
reasonable period, provided Contractor promptly commences to cure the breach/default and diligently 2788
pursues the cure to completion. However, this paragraph shall not be deemed to limit the first sentence 2789
of this Section 10.2. 2790
10.3 CITY’S REMEDIES IN THE EVENT OF DEFAULT 2791
Upon Contractor’s default, the City has the following remedies in the event of Contractor default: 2792
A. Waiver of Default. The City may waive any event of default or may waive Contractor’s 2793
requirement to cure a default event if the City determines that such waiver would be in the best 2794
interest of the City. The City’s waiver of an event of default is not a waiver of future events of 2795
default that may have the same or similar conditions. 2796
B. Suspension of Contractor’s Obligation. The City may suspend Contractor’s performance of its 2797
obligations if Contractor fails to cure default in the time frame specified in Section 10.2 until such 2798
time Contractor can provide assurance of performance in accordance with Section 10.8. 2799
C. Liquidated Damages. The City may assess Liquidated Damages for Contractor’s failure to meet 2800
specific performance standards pursuant to Section 10.6 and Exhibit F. 2801
D. Termination. In the event that Contractor should default, and subject to the right of Contractor 2802
to cure, in the performance of any provisions of this contract, and the default is not cured within 2803
the time periods specified in Section 10.2, then the City may, at its option, terminate this 2804
Agreement and/or hold a hearing at its City Council meeting to determine whether this 2805
Agreement should be terminated. In the event the City decides to terminate this Agreement, the 2806
City shall serve twenty (20) calendar days’ prior written notice of its intention to terminate upon 2807
Contractor. In the event the City exercises its right to terminate this Agreement, the City may, at 2808
its option, upon such termination, either directly undertake performance of the services or 2809
arrange with other Persons to perform the services with or without a written agreement. This 2810
right of termination is in addition to any other rights of the City upon a failure of Contractor to 2811
perform its obligations under this Agreement. 2812
Contractor shall not be entitled to any further revenues from operations authorized hereunder 2813
from and after the date of termination. 2814
E. Other Available Remedies. The City’s election of one (1) or more remedies described herein shall 2815
not limit the City from any and all other remedies at law and in equity including injunctive relief, 2816
etc. 2817
10.4 POSSESSION OF RECORDS UPON TERMINATION 2818
In the event of termination for an event of default, Contractor shall furnish the City Contract Manager 2819
with immediate access to all of its business records, including without limitation, proprietary Contractor 2820
computer systems, related to its Customers, Collection Routes, and billing of accounts for Collection 2821
services, to the extent required to enable City to perform or have a third party perform the Collection 2822
services contemplated by this Agreement to be performed by Contractor. 2823
December 3, 2020 -72- City of Cupertino/Recology Franchise Agreement
10.5 CITY'S REMEDIES CUMULATIVE; SPECIFIC PERFORMANCE 2824
The City's rights to terminate the Agreement under Section 10.3 and to take possession of Contractor's 2825
records under Section 10.4 are not exclusive, and the City's termination of the Agreement and/or the 2826
imposition of Liquidated Damages shall not constitute an election of remedies. Instead, these rights shall 2827
be in addition to any and all other legal and equitable rights and remedies that the City may have. 2828
By virtue of the nature of this Agreement, the urgency of timely, continuous, and high-quality service; the 2829
lead time required to effect alternative service; and, the rights granted by the City to Contractor, the 2830
remedy of damages for a breach hereof by Contractor is inadequate and the City shall be entitled to 2831
injunctive relief (including but not limited to specific performance). 2832
10.6 PERFORMANCE STANDARDS AND LIQUIDATED DAMAGES 2833
A. General. The Parties find that as of the time of the execution of this Agreement, it is impractical, 2834
if not impossible, to reasonably ascertain the extent of damages that shall be incurred by the City 2835
as a result of a breach by Contractor of its obligations under this Agreement. The factors relating 2836
to the impracticability of ascertaining damages include, but are not limited to, the fact that: (i) 2837
substantial damage results to members of the public who are denied services or denied quality or 2838
reliable service; (ii) such breaches cause inconvenience, anxiety, frustration, and deprivation of 2839
the benefits of the Agreement to individual members of the general public for whose benefit this 2840
Agreement exists, in subjective ways and in varying degrees of intensity which are incapable of 2841
measurement in precise monetary terms; (iii) that exclusive services might be available at 2842
substantially lower costs than alternative services and the monetary loss resulting from denial of 2843
services or denial of quality or reliable services is impossible to calculate in precise monetary 2844
terms; and, (iv) the termination of this Agreement for such breaches, and other remedies are, at 2845
best, a means of future correction and not remedies which make the public whole for past 2846
breaches. 2847
B. Service Performance Standards; Liquidated Damages for Failure to Meet Standards. The Parties 2848
further acknowledge that consistent, reliable Collection services are of utmost importance to the 2849
City and that the City has considered and relied on Contractor's representations as to its quality 2850
of service commitment in awarding the Agreement to it. The Parties recognize that some 2851
quantified standards of performance are necessary and appropriate to ensure consistent and 2852
reliable service and performance. The Parties further recognize that if Contractor fails to achieve 2853
the performance standards, or fails to submit required documents in a timely manner, the City 2854
and its residents and businesses will suffer damages, and that it is, and will be, impractical and 2855
extremely difficult to ascertain and determine the exact amount of damages that the City will 2856
suffer. Therefore, without prejudice to the City’s right to treat such non-performance as an event 2857
of default under this Section, the Parties agree that the Liquidated Damages amounts established 2858
in Exhibit F of this Agreement represent a reasonable estimate of the amount of such damages 2859
considering all of the circumstances existing on the Effective Date, including the relationship of 2860
the sums to the range of harm to the City that reasonably could be anticipated and the 2861
anticipation that proof of actual damages would be costly or impractical. 2862
Contractor agrees to pay (as Liquidated Damages and not as a penalty) the amounts set forth in 2863
the Performance Standards and Liquidated Damages, Exhibit F. 2864
December 3, 2020 -73- City of Cupertino/Recology Franchise Agreement
Before assessing Liquidated Damages, the City shall give Contractor notice of its intention to do 2865
so. The notice will include a brief description of the incident(s) and non-performance. The City 2866
may review (and make copies at its own expense) all information in the possession of Contractor 2867
relating to incident(s) and/or non-performance. The City may, within ten (10) Business Days after 2868
issuing the notice, request a meeting with Contractor. The City may present evidence of non-2869
performance in writing and through testimony of its employees and others relevant to the 2870
incident(s) and non-performance. The City Contract Manager will provide Contractor with a 2871
written explanation of their determination on each incident(s) and non-performance prior to 2872
authorizing the assessment of Liquidated Damages under this Section 10.6. The decision of the 2873
City Contract Manager shall be final. 2874
C. Amount. The City may assess Liquidated Damages for each calendar day or event, as appropriate, 2875
that Contractor is determined to be liable in accordance with this Agreement in the amounts 2876
specified in Exhibit F. 2877
D. Timing of Payment. Contractor shall pay any Liquidated Damages assessed by the City within ten 2878
(10) Business Days after the date the Liquidated Damages are assessed. If they are not paid within 2879
the ten (10) Business Day period, the City may proceed against the performance bond required 2880
by the Agreement, treat the failure as a breach under Section 10.1, or all of the above. 2881
10.7 EXCUSE FROM PERFORMANCE 2882
The Parties understand and agree herein that the services provided under this Agreement are essential 2883
to the protection of public health and safety and that Contractor may be required to perform these 2884
services under difficult, adverse, and unforeseen circumstances. Notwithstanding the foregoing, a Party 2885
shall be excused from performing their obligations hereunder (except payment obligations, including any 2886
obligation to pay Liquidated Damages) to the extent and for the period of time it is prevented from so 2887
performing by reason of floods, earthquakes, other acts of nature, fires, epidemic/pandemic, war, civil 2888
insurrection, riots, acts of any domestic governmental body (including judicial action), and other events 2889
arising after the Effective Date that could not with reasonable diligence be controlled or prevented by the 2890
Party affected by the event ( “Force Majeure Events”). However, performance shall only be excused in the 2891
event that the Party requesting relief from performance can specifically demonstrate that it is prevented 2892
from performance of a specific obligation, and shall only be excused from those requirements that it 2893
demonstrates it is prevented from performing and only for such time as it is prevented from performing. 2894
All other performance obligations shall be required to continue. 2895
In the case of labor unrest or job action directed at a third party over whom Contractor has no control, 2896
the inability of Contractor to provide services in accordance with this Agreement due to the unwillingness 2897
or failure of the third party to: (i) provide reasonable assurance of the safety of Contractor's employees 2898
while providing such services; or, (ii) make reasonable accommodations with respect to Container 2899
placement and point of Delivery, time of Collection, or other operating circumstances to minimize any 2900
confrontation with pickets or the number of Persons necessary to make Collections shall, to that limited 2901
extent, excuse performance. The foregoing excuse shall be conditioned on Contractor's cooperation in 2902
performing Collection services at different times and in different locations. Further, in the event of labor 2903
unrest, including but not limited to strike, work stoppage or slowdown, sickout, picketing, or other 2904
concerted job action conducted by Contractor’s employees or directed at Contractor, or a subsidiary, 2905
Contractor shall not be excused from performance. In such case, Contractor shall continue to provide a 2906
reasonably satisfactory level of performance during the pendency thereof, but Contractor shall not be 2907
December 3, 2020 -74- City of Cupertino/Recology Franchise Agreement
required to adhere strictly to the specific requirements of this Agreement regarding Routes, Collection 2908
times or similar matters; provided, however, that in no event shall more than seven (7) calendar days 2909
elapse between Collections for any Customer. Any labor action initiated by Contractor, including but not 2910
limited to a lock-out, shall not be grounds for any excuse from performance and Contractor shall perform 2911
all obligations under this Agreement during the pendency of such Contractor-initiated labor action. 2912
The Party claiming excuse from performance shall, within two (2) calendar days after such Party has notice 2913
of such cause (or, if later, has notice of the impossibility or impracticability of performance), give the other 2914
Party notice of the facts constituting such cause and asserting its claim to excuse under this Section. 2915
If either Party validly exercises its rights under this Section, the Parties hereby waive any claim against 2916
each other for any damages sustained thereby. 2917
The partial or complete interruption or discontinuance of Contractor's services caused by one (1) or more 2918
of the events described in this Article shall not constitute a default by Contractor under this Agreement. 2919
Notwithstanding the foregoing, however, if Contractor is excused from performing Collection services 2920
hereunder for any of the causes listed in this Section for a period of thirty (30) calendar days or more, the 2921
City shall nevertheless have the right, in its sole discretion, to terminate this Agreement by giving ten (10) 2922
Business Days’ prior written notice to Contractor, in which case the provisions of Section 10.4 shall apply. 2923
10.8 RIGHT TO DEMAND ASSURANCES OF PERFORMANCE 2924
The Parties acknowledge that it is of the utmost importance to the City and the health and safety of all 2925
those members of the public residing or doing business within the City who will be adversely affected by 2926
interrupted waste management service, that there be no material interruption in services provided under 2927
this Agreement. 2928
If Contractor: (i) is the subject of any labor unrest including work stoppage or slowdown, sick-out, 2929
picketing or other concerted job action; (ii) appears in the reasonable judgment of the City to be unable 2930
to regularly pay its bills as they become due; or, (iii) is the subject of a civil or criminal judgment or order 2931
entered by a Federal, State, regional or local agency for violation of an applicable Federal, State, and local 2932
laws and regulations, and the City believes in good faith that Contractor's ability to perform under the 2933
Agreement has thereby been placed in substantial jeopardy, the City may, at its sole option and in addition 2934
to all other remedies it may have, demand from Contractor reasonable assurances of timely and proper 2935
performance of this Agreement, in such form and substance as the City believes in good faith is reasonably 2936
necessary in the circumstances to evidence continued ability to perform under the Agreement. If 2937
Contractor fails or refuses to provide satisfactory assurances of timely and proper performance in the 2938
form and by the date required by the City, such failure or refusal shall be an event of default for purposes 2939
of Section 10.1. 2940
10.9 DISPUTE RESOLUTION 2941
In the event of dispute between the City Contract Manager and Contractor regarding the interpretation 2942
of or the performance of services under this Agreement which results in a material impact to 2943
Contractor’s revenue and/or cost of operations, as defined in Section 5.9, the provisions of Section 2944
10.9 shall apply.A. Meet and Confer. In the event of dispute between the Parties regarding 2945
the interpretation of, or the performance of any obligation under, this Agreement which results 2946
in a material impact to Contractor’s revenue and/or cost of operations, the City and Contractor 2947
December 3, 2020 -75- City of Cupertino/Recology Franchise Agreement
agree that they will promptly meet and confer to attempt to resolve the matter between 2948
themselves. 2949
B. Mediation. In the event that the dispute cannot be resolved satisfactorily between the Parties in 2950
accordance with Section 10.9.A, the City and Contractor agree that such dispute shall be 2951
submitted to mandatory, non-binding mediation by a mutually agreed upon independent third 2952
party. 2953
C. Period of Time. Insofar as allowed by applicable Federal, State, and local laws and regulations, 2954
the period of time otherwise applicable for filing claims against the City under applicable Federal, 2955
State, and local laws and regulations shall be tolled during the period of time for which meet and 2956
confer or mediation procedures are pending, in accordance with Sections 10.9.A and 10.9.B. 2957
D. Litigation. Litigation may be commenced only after efforts to resolve the dispute(s) pursuant to 2958
Sections 10.9.A, 10.9.B, and 10.9.C have failed and any necessary administrative claim(s) to City 2959
have been denied. 2960
ARTICLE 11. 2961
REPRESENTATIONS AND WARRANTIES OF 2962
THE PARTIES 2963
The Parties, by acceptance of this Agreement, represents and warrants the conditions presented in this 2964
Article. Contractor is expected to represent and warrant all of the items in Sections 11.1 through 11.9. 2965
City is expected to represent and warrant all of the items in Sections 11.3 through 11.6. 2966
11.1 CONTRACTOR’S CORPORATE STATUS 2967
Contractor is a corporation duly organized, validly existing and in good standing under the laws of the 2968
State. It is qualified to transact business in the State and has the power to own its properties and to carry 2969
on its business as now owned and operated and as required by this Agreement. 2970
11.2 CONTRACTOR’S CORPORATE AUTHORIZATION 2971
Contractor has the authority to enter this Agreement and perform its obligations under this Agreement. 2972
The Board of Directors of Contractor (or the shareholders, if necessary) have taken all actions required by 2973
law, its articles of incorporation, its bylaws, or otherwise, to authorize the execution of this Agreement. 2974
The Person signing this Agreement on behalf of Contractor represents and warrants that they have 2975
authority to do so. This Agreement constitutes the legal, valid, and binding obligation of Contractor. 2976
11.3 AGREEMENT WILL NOT CAUSE BREACH 2977
To the best of Contractor's and the City’s knowledge, after reasonable investigation, the execution or 2978
delivery of this Agreement or the performance by either Party of their obligations hereunder does not 2979
conflict with, violate, or result in a breach: (i) of any applicable Federal, State, and local laws and 2980
regulations; or, (ii) any term or condition of any judgment, order, or decree of any court, administrative 2981
agency or other governmental authority, or any agreement or instrument to which Contractor or the City 2982
is a party or by which Contractor or any of its properties or assets are bound, or constitutes a default 2983
hereunder. 2984
December 3, 2020 -76- City of Cupertino/Recology Franchise Agreement
11.4 NO LITIGATION 2985
To the best of Contractor's and the City’s knowledge, after reasonable investigation, there is no action, 2986
suit, proceeding or investigation, at law or in equity, before or by any court or governmental authority, 2987
commission, board, agency or instrumentality decided, pending or threatened against either Party 2988
wherein an unfavorable decision, ruling or finding, in any single case or in the aggregate, would: 2989
A. Materially adversely affect the performance by such Party of its obligations hereunder; 2990
B. Adversely affect the validity or enforceability of this Agreement; or, 2991
C. Have a material adverse effect on the financial condition of Contractor, or any surety or entity 2992
guaranteeing Contractor's performance under this Agreement. 2993
11.5 NO ADVERSE JUDICIAL DECISIONS 2994
To the best of Contractor’s and the City’s knowledge, after reasonable investigation, there is no judicial 2995
decision that would prohibit this Agreement or subject this Agreement to legal challenge. 2996
11.6 NO LEGAL PROHIBITION 2997
To the best of Contractor’s and City’s knowledge, after reasonable investigation, there is no applicable 2998
Federal, State, and local laws and regulations in effect on the date that Party signed this Agreement that 2999
would prohibit the performance of either its obligations under this Agreement or the transactions 3000
contemplated hereby. 3001
11.7 CONTRACTOR’S ABILITY TO PERFORM 3002
Contractor possesses the business, professional, and technical expertise to perform all services, 3003
obligations, and duties as described in and required by this Agreement including all Exhibits thereto. 3004
Contractor possesses the ability to secure equipment, facility, and employee resources required to 3005
perform its obligations under this Agreement. 3006
11.8 CONTRACTOR’S INVESTIGATION 3007
Contractor has made an independent investigation and analysis, the results of which are satisfactory to 3008
Contractor, of the conditions and circumstances surrounding the Agreement, its content and preparation, 3009
and the work to be performed by Contractor under the Agreement. The Agreement accurately and fairly 3010
represents the intentions of Contractor, and Contractor enters into this Agreement on the basis of that 3011
independent investigation and analysis. 3012
11.9 STATEMENT AND INFORMATION IN PROPOSAL 3013
Contractor’s Proposal and any supplementary information submitted by Contractor to City for the work 3014
to be performed by Contractor under the Agreement do not contain any untrue statement of a material 3015
fact nor omit any material facts relevant to the ability of Contractor to perform the work under the 3016
Agreement. 3017
December 3, 2020 -77- City of Cupertino/Recology Franchise Agreement
ARTICLE 12. 3018
OTHER AGREEMENTS OF THE PARTIES 3019
12.1 RELATIONSHIP OF PARTIES 3020
The Parties intend that Contractor shall perform the services required by this Agreement as an 3021
independent Contractor engaged by the City and neither as an officer nor employee of the City, nor as a 3022
partner or agent of, or joint venturer with, the City. No employee or agent of Contractor shall be, or shall 3023
be deemed to be, an employee or agent of the City. Contractor shall have the exclusive control over the 3024
manner and means of performing services under this Agreement, except as expressly provided herein. 3025
Contractor shall be solely responsible for the acts and omissions of its officers, employees, Subcontractors 3026
and agents. Neither Contractor nor its officers, employees, Subcontractors, and agents shall obtain any 3027
rights to retirement benefits, workers' compensation benefits, or any other benefits which accrue to the 3028
City employees by virtue of their employment with the City. 3029
12.2 COMPLIANCE WITH LAW 3030
In the performance of this Agreement, Contractor shall at all times comply with all applicable laws of the 3031
United States, the State, County, and the City and with all applicable regulations promulgated by Federal, 3032
State, regional or local administrative and regulatory agencies, now in force and as they may be enacted, 3033
issued, or amended during the Term. 3034
12.3 GOVERNING LAW 3035
This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the 3036
State. 3037
12.4 JURISDICTION 3038
Any lawsuits between the Parties arising out of this Agreement shall be brought and concluded in the 3039
courts of the County, which shall have exclusive jurisdiction over such lawsuits. With respect to venue, 3040
the Parties agree that this Agreement is made in and will be performed in the County. 3041
12.5 BINDING ON SUCCESSORS 3042
The provisions of this Agreement shall inure to the benefit to and be binding on the successors and 3043
permitted assigns of the Parties. 3044
12.6 ASSIGNMENT 3045
Neither Party shall assign its rights nor delegate or otherwise transfer its obligations under this Agreement 3046
to any other Person without the prior written consent of the other Party. Any such assignment made 3047
without the consent of the other Party shall be void and the attempted assignment shall constitute a 3048
material breach of this Agreement. 3049
For purposes of this Section, "assignment" shall include, but not be limited to: (i) a sale, exchange or other 3050
transfer of substantially all of Contractor's local, regional, and/or corporate assets dedicated to service 3051
under this Agreement to a third party; (ii) a sale, exchange or other transfer of ten (10) percent or more 3052
December 3, 2020 -78- City of Cupertino/Recology Franchise Agreement
of the local, regional, and/or corporate stock, or ownership of Contractor to a third party (other than a 3053
transfer of shares in Contractor by the owner of such shares to a revocable trust for the benefit of his 3054
family or to another owner of shares in Contractor) except that no cumulative sale, exchange, or transfer 3055
of shares may exceed twenty percent (20%) during the Term of the Agreement (other than a transfer of 3056
shares in Contractor by the owner of such shares to a revocable trust for the benefit of his family or to 3057
another owner of shares in Contractor); (iii) any reorganization, consolidation, merger, recapitalization, 3058
stock issuance or re-issuance, voting trust, pooling agreement, escrow arrangement, liquidation or other 3059
transaction to which Contractor or any of its shareholders is a party which results in a change of ownership 3060
or control of ten percent (10%) or more of the value or voting rights in the local, regional, and/or corporate 3061
stock of Contractor; (iv) divestiture of an Affiliate (e.g., trucking company, materials recovery facility, 3062
Transfer station) used by Contractor to fulfill its obligations under this Agreement; and, (v) any 3063
combination of the foregoing (whether or not in related or contemporaneous transactions) which has the 3064
effect of any such transfer or change of local, regional, and/or corporate ownership and/or control of 3065
Contractor. For purposes of this Section, the term "proposed assignee" shall refer to the proposed 3066
transferee(s) or other successor(s) in interest pursuant to the assignment. 3067
Contractor acknowledges that this Agreement involves rendering a vital service to the City's residents and 3068
businesses, and that the City has selected Contractor to perform the services specified herein based on: 3069
(i) Contractor's experience, skill, and reputation for conducting its Recyclable Materials, Organic Materials, 3070
and Solid Waste management operations in a safe, effective, and responsible fashion, at all times in 3071
keeping with applicable waste management laws, regulations, and good waste management practices; 3072
and, (ii) Contractor's financial resources on a local, regional, and/or corporate level to maintain the 3073
required equipment and to support its indemnity obligations to the City under this Agreement. The City 3074
has relied on each of these factors, among others, in choosing Contractor to perform the services to be 3075
rendered by Contractor under this Agreement. 3076
If Contractor requests the City's consideration of and consent to an assignment, the City may deny or 3077
approve such request in its sole and complete discretion. No request by Contractor for consent to an 3078
assignment need be considered by the City unless and until Contractor has met the following 3079
requirements. The City may, in its sole discretion, waive one (1) or more of these requirements. 3080
A. Contractor shall pay the City a transfer fee in the amount of one (1) percent of the Gross Receipts 3081
for the most-recently completed Rate Period. 3082
B. Contractor shall pay the City its actual expenses for attorneys’, consultants’, accountants’ fees, 3083
staff time, and investigation costs necessary to investigate the suitability of any proposed 3084
assignee, and to review and finalize any documentation required as a condition for approving any 3085
such assignment. Such payment shall be required regardless of the ultimate determination of the 3086
City with regard to the approval or denial of the assignment. Upon submittal of Contractor’s 3087
request for assignment to the City, Contractor shall submit an initial deposit of one hundred 3088
thousand dollars ($100,000) for this purpose. 3089
C. Contractor shall furnish the City with reviewed financial statements of the proposed assignee's 3090
operations for the immediately preceding three (3) operating years. 3091
D. Contractor shall furnish the City with satisfactory proof: (i) that the proposed assignee has at least 3092
ten (10) years of Recyclable Materials, Organic Materials, Solid Waste, and C&D management 3093
experience on a scale equal to or exceeding the scale of operations conducted by Contractor 3094
December 3, 2020 -79- City of Cupertino/Recology Franchise Agreement
under this Agreement; (ii) that in the last five (5) years, the proposed assignee has not suffered 3095
any citations or other censure from any Federal, State or local contractor having jurisdiction over 3096
its waste management operations due to any significant failure to comply with State, Federal or 3097
local waste management laws and that the assignee has provided the City with a complete list of 3098
such citations and censures; (iii) that the proposed assignee has at all times conducted its 3099
operations in an environmentally safe and conscientious fashion; (iv) that the proposed assignee 3100
conducts its operations and management practices in accordance with sound waste management 3101
practices in full compliance with all Federal, State, and local laws regulating the Collection, 3102
Transportation, Processing, and Disposal of Recyclable Materials, Organic Materials, Solid Waste, 3103
and C&D including Hazardous Waste; and, (v) that any other information required by the City 3104
demonstrates that the proposed assignee can fulfill the terms of this Agreement in a timely, safe 3105
and effective manner. 3106
E. Contractor shall provide the City with any and all additional records or documentation which, in 3107
the City Contract Manager’s sole determination, would facilitate the review of the proposed 3108
assignment. 3109
Under no circumstances shall any proposed assignment be considered by the City if Contractor is in default 3110
at any time during the period of consideration. If, in the City’s sole determination, there is any doubt 3111
regarding the compliance of Contractor with the Agreement, the City may require an audit of Contractor’s 3112
compliance and the costs of such audit shall be paid by Contractor in advance of the performance of said 3113
audit. 3114
12.7 NO THIRD PARTY BENEFICIARIES 3115
This Agreement is not intended to, and will not be construed to, create any right on the part of any third 3116
party to bring an action to enforce any of its terms. 3117
12.8 WAIVER 3118
The waiver by either Party of any breach or violation of any provisions of this Agreement shall not be 3119
deemed to be a waiver of any breach or violation of any other provision nor of any subsequent breach of 3120
violation of the same or any other provision. The subsequent acceptance by either Party of any monies 3121
which become due hereunder shall not be deemed to be a waiver of any pre-existing or concurrent breach 3122
or violation by the other Party of any provision of this Agreement. 3123
12.9 NOTICE PROCEDURES 3124
All notices, requests, and approvals must be sent in writing to the Persons below, which will be considered 3125
effective on: the date of personal delivery; the date confirmed by a reputable overnight delivery service; 3126
the fifth calendar day after deposit in the United States Mail, postage prepaid, registered or certified; or 3127
the next Business Day following electronic submission: 3128
If to City: 3129
City of Cupertino 3130
Attention: City Manager 3131
10300 Torre Avenue 3132
Cupertino, California, 95014 3133
December 3, 2020 -80- City of Cupertino/Recology Franchise Agreement
3134
If to Contractor: 3135
Recology Cupertino 3136
Attn: Legal Department 3137
50 California Street, 24th Floor 3138
San Francisco, CA 94111 3139
3140
The address to which communications may be delivered may be changed from time to time by a notice 3141
given in accordance with this Section. 3142
12.10 REPRESENTATIVES OF THE PARTIES 3143
References in this Agreement to the “City” shall mean the City’s elected body and all actions to be taken 3144
by the City except as provided below. The City may delegate, in writing, authority to the City Contract 3145
Manager and/or to other City officials and may permit such officials, in turn, to delegate in writing some 3146
or all of such authority to subordinate officers. Contractor may rely upon actions taken by such delegates 3147
if they are within the scope of the authority properly delegated to them. 3148
Contractor shall, by the Effective Date, designate in writing a responsible officer who shall serve as the 3149
Contractor’s Contract Manager. The Contractor’s Contract Manager shall be the representative of 3150
Contractor in all matters related to the Agreement and Contractor shall inform the City in writing of such 3151
designation and of any limitations upon his or her authority to bind Contractor. The City may rely upon 3152
action taken by Contractor’s Contract Manager as actions of Contractor unless they are outside the scope 3153
of the authority delegated to him/her by Contractor as communicated to the City. 3154
ARTICLE 13. 3155
MISCELLANEOUS AGREEMENTS 3156
13.1 ENTIRE AGREEMENT 3157
This Agreement is the entire agreement between the Parties with respect to the subject matter hereof 3158
and supersedes all prior and contemporaneous oral and written agreements and discussions. Each Party 3159
has cooperated in the drafting and preparation of this Agreement and this Agreement shall not be 3160
construed against any Party on the basis of drafting. This Agreement may be amended only by an 3161
agreement in writing, signed by each of the Parties hereto. 3162
13.2 SECTION HEADINGS 3163
The article headings and section headings in this Agreement are for convenience of reference only and 3164
are not intended to be used in the construction of this Agreement nor to alter or affect any of its 3165
provisions. 3166
13.3 REFERENCES TO LAWS 3167
All references in this Agreement to laws and regulations shall be understood to include such laws as they 3168
may be subsequently amended or recodified, unless otherwise specifically provided herein. 3169
December 3, 2020 -81- City of Cupertino/Recology Franchise Agreement
13.4 AMENDMENTS 3170
This Agreement may not be modified or amended in any respect except in writing signed by the Parties. 3171
13.5 SEVERABILITY 3172
If any non-material provision of this Agreement is for any reas on deemed to be invalid and unenforceable, 3173
the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this 3174
Agreement, which shall be enforced as if such invalid or unenforceable provision had not been contained 3175
herein. 3176
13.6 COUNTERPARTS 3177
This Agreement may be executed in counterparts, each of which shall be considered an original. 3178
13.7 DEFINITIONS 3179
Unless defined elsewhere in this Agreement, capitalized terms used in this Agreement shall have the 3180
meanings set forth in the definitions contained in Exhibit A. The definitions set forth in Exhibit A shall 3181
govern the interpretation of this Agreement. 3182
13.8 EXHIBITS 3183
Each of the Exhibits identified as Exhibit “A” through “L” is attached hereto and incorporated herein and 3184
made a part hereof by this reference. In the event of a conflict between the terms of this Agreement and 3185
the terms of an Exhibit, the terms of this Agreement shall control. In the event of a conflict between 3186
Exhibit G1 and any other Exhibit(s), such other Exhibit(s) shall control. 3187
IN WITNESS WHEREOF, this Agreement is entered into by the Parties hereto in Santa Clara County, 3188
California on the day and year first above written. 3189
December 3, 2020 -82- City of Cupertino/Recology Franchise Agreement
3190
City of Cupertino
A Municipal Corporation “CITY”
Recology South Bay (d/b/a Recology Cupertino)
“CONTRACTOR”
Darcy Paul Date
Mayor
Date Signature
Salvatore M. Coniglio
Print Name of Signatory
The Foregoing Agreement Has been Reviewed
and Approval Is Recommended: President & CEO
Title of Signatory
Roger Lee Date
Director, Public Works
Signature Date
APPROVED AS TO FORM: Cary Chen
Print Name of Signatory
Corporate Secretary
Heather Minner Date
City Attorney
Title of Signatory
ATTEST:
15838
Kirsten Squarcia Date
City Clerk
City Business License #
Resolution Number ___20-042
Approved by City Council
3191
Jan 29, 2021
Cary Chen Jan 29, 2021
Heather M. Minner Jan 29, 2021
Jan 29, 2021
Jan 29, 2021
Jan 29, 2021
EXHIBIT A:
DEFINITIONS
EXHIBIT A
DEFINITIONS
December 3, 2020 Page A-1 City of Cupertino/Recology Franchise Exhibit A
For purposes of this Agreement, unless a different meaning is clearly required, the following words and
phrases shall have the following meanings respectively ascribed to them by this Exhibit and shall be
capitalized throughout this Agreement:
“AB 341” means the California Jobs and Recycling Act of 2011 (Chapter 476, Statues of 2011 [Chesbro, AB
341]), also commonly referred to as “AB 341”, as amended, supplemented, superseded, and replaced
from time to time.
“AB 939” means the California Integrated Waste Management Act of 1989 (Division 30 of the California
Public Resources Code), also commonly referred to as "AB 939," as amended, supplemented, superseded,
and replaced from time to time.
“AB 1826” means the Organic Waste Recycling Act of 2014 (Chapter 727, Statutes of 2014 modifying
Division 30 of the California Public Resources Code), also comm only referred to as "AB 1826," as amended,
supplemented, superseded, and replaced from time to time.
“Affiliate” means, with respect to any given Person, any other Person that directly or indirectly controls,
is controlled by, or is under common control with such given Person. For purposes of this definition,
“control” and its variants mean possession of the power to direct or cause the direction of the
management and policies of the other Person, whether through ownership of voting securities or equity
interests, representation on its governing body, by contract, or otherwise. Affiliates are not third parties.
“Agreement” means this franchise agreement (including all exhibits and any future amendments)
between the City and Contractor for Recyclable Materials, Organic Materials, and Solid Waste Collection,
Recyclable Materials and Organic Materials Processing Services, and Transport for Disposal.
“Alternative Daily Cover” or “ADC” has the same meaning as in Section 20690 of Title 27 of the California
Code of Regulations.
“Alternative Intermediate Cover” or “AIC” has the same meaning as in Section 20700 of Title 27 of the
California Code of Regulations.
“Applicable Law” means all Federal, State, county, City, and local laws, regulations, rules, orders,
judgments, degrees, permits, approvals, regulatory guidance, or other requirement of any governmental
body having jurisdiction over the Collection, Transportation, Processing, or Disposal of Discarded
Materials that are in force on the Effective Date and as may be enacted, issued or amended during the
Term of this Agreement. Applicable Law includes, but is in no way limited to, AB 939, AB 341, AB 1826,
and SB 1383, as well as all Environmental Laws.
“Approved Facility(ies)” means any one of or any combination of the: Approved Recyclable Materials
Processing Facility; Approved Organic Materials Processing Facility; Approved Organic Materials
Processing Facility; or Approved Transfer Facility; and/or any Designated Facility(ies).
“Approved Organic Materials Processing Facility” means the Blossom Valley Organics – North
Composting facility located at 3909 Gaffery Road, Vernalis, CA (as to Commercial and Multi-Family Organic
Materials); and, the South Valley Organics Composting facility located at 3675 Pacheco Pass Highway,
EXHIBIT A
DEFINITIONS
December 3, 2020 Page A-2 City of Cupertino/Recology Franchise Exhibit A
Gilroy, CA (as to Residential (Single-Family) Organic Materials). Both facilities are owned and operated by
a Contractor Affiliate.
“Approved Processing Facility(ies)” means any one of or any combination of the: Approved Recyclable
Materials Processing Facility; Approved Organic Materials Processing Facility; or, Approved Transfer
Facility.
“Approved Recyclable Materials Processing Facility” means the GreenWaste Recovery Materials
Recovery Facility located at 625 Charles Street, San Jose, CA.
“Approved Transfer Facility” means the Rogers Avenue Transfer Station located at 1675 Rogers Avenue,
Santa Clara, CA, which is owned and operated by Contractor.
“Back-Haul” means generating and transporting Organic Waste to a destination owned and operated by
the Generator using the Generator’s own employees and equipment, or as otherwise defined in 14 CCR
Section 18982(a)(66)(A).
“Bin” means a Container with capacity of approximately one (1) to eight (8) cubic yards, with a hinged lid,
and with wheels (where appropriate), that is serviced by a front end-loading Collection vehicle, including
Bins with Compactors attached to increase the capacity of the Bin.
“Bin-by-the-Day” means Bin service for the Collection and Processing of Recyclable Materials and Organic
Materials and the Collection and Disposal of Solid Waste. Customers may use Bin-by-the-Day services to
Dispose of Bulky Items and oversized Recyclable Materials or Organic Materials that do not fit into a
Recyclable Materials Container or an Organic Materials Container. For billing and compensation purposes,
all Bin-by-the-Day services are classified as extra services under this Agreement.
"Bulky Item" means discarded appliances (including refrigerators, ranges, washers, dryers, water heaters,
dishwashers and other similar items commonly known as white goods), furniture, tires, carpets,
mattresses, E-Waste, bundled and tied Yard Trimmings and/or wood waste, and similar large items that
can be handled by two (2) people, weigh no more than two hundred (200) pounds, and require special
Collection due to their size or nature, but can be Collected without the assistance of special loading
equipment (such as forklifts or cranes) and without violating vehicle load limits. Bulky Items must be
generated by the Customer and at the service address wherein the Bulky Items are Collected. Bulky Items
do not include abandoned automobiles, large auto parts, trees, Construction and Demolition Debris, or
items herein defined as Excluded Waste.
“Business Days” mean days during which the City offices are open to do business with the public.
“California Code of Regulations (CCR)” means the State of California Code of Regulations. CCR references
in this Agreement are preceded with a number that refers to the relevant Title of the CCR (e.g., “14 CCR”
refers to Title 14 of the CCR).
“CalRecycle” means California's Department of Resources Recycling and Recovery.
“Cardboard” means corrugated fiberboard consisting of a fluted corrugated sheet and one or two flat
linerboards, as is often used in the manufacture of shipping containers and corrugated boxes. Cardboard
is a subset of Recyclable Materials.
EXHIBIT A
DEFINITIONS
December 3, 2020 Page A-3 City of Cupertino/Recology Franchise Exhibit A
“Cart” means a plastic Container with a hinged lid and wheels that is serviced by an automated or semi-
automated Collection vehicle. A Cart has capacity of twenty-four (24), thirty-two (32), sixty-four (64), or
ninety-six (96) gallons (or similar volumes).
“City” means the City of Cupertino and all the territory lying within its boundaries as presently existing or
as such boundaries may be modified during the Term of this Agreement.
“City Contract Manager” means the City’s Director of Public Works, who is responsible for the
administrative management of this Agreement, or their designee.
“City Fees” means all fees payable to the City, identified and referenced in Article 7 of this Agreement.
“Change in Law” means any of the following events or conditions:
A. The enactment, adoption, promulgation, issuance, modification, or written change in any
Applicable Law, or administrative or judicial interpretation of any Applicable Law, on or after the
Effective Date; or,
B. The order or judgment of any judicial or quasi-judicial Federal, State, County, City, or local
governmental body, on or after the Effective Date, to the extent such order or judgment is not
the result of willful or negligent action, error or omission or lack of reasonable diligence of the
City or of Contractor, whichever is asserting the occurrence of a Change in Law; provided,
however, that the contesting in good faith or the failure in good faith to contest any such order
or judgment shall not constitute or be construed as such a willful or negligent action, error or
omission or lack of reasonable diligence.
“Collect” or “Collection” (or any variation thereof) means the act of taking possession of Recyclable
Materials, Organic Materials, C&D, Solid Waste, Bulky Items, and other material at the place of generation
in the City.
“Commencement Date” means the date specified in Section 2.1 of the Agreement.
“Commercial” shall mean of, from, or pertaining to non-Residential Premises including, but not limited
to, retail sales, services, wholesale operations, manufacturing, governmental, non-profit, institutional,
and industrial operations, but excluding businesses conducted upon Residential property that are
permitted under applicable zoning regulations and are not the primary use of the property. Commercial
includes a firm, partnership, proprietorship, joint-stock company, corporation, or association, whether
for-profit or nonprofit, governmental body, strip mall, or industrial facility, or as otherwise defined in 14
CCR Section 18982(a)(6), with the exception that Multi-Family is excluded from the definition of
Commercial for the purposes of this Agreement, and that the definition of Commercial shall not apply to
any governmental body that has the legal right to, and does, procure Solid Waste Collection services
outside of this Agreement.
“Commercial Edible Food Generator” includes Tier One Commercial Edible Food Generators and Tier Two
Commercial Edible Food Generators, or as otherwise defined in 14 CCR Section 18982(a)(7). For the
purposes of this definition, Food Recovery Organizations and Food Recovery Services are not Commercial
Edible Food Generators, or as otherwise specified by 14 CCR Section 18982(a)(7).
EXHIBIT A
DEFINITIONS
December 3, 2020 Page A-4 City of Cupertino/Recology Franchise Exhibit A
“Community Composting” means any activity that Composts green material, agricultural material, food
material, and vegetative food material, alone or in combination, and the total amount of feedstock and
Compost on-site at any one time does not exceed one hundred (100) cubic yards and seven hundred and
fifty (750) square feet, as specified in 14 CCR Section 17855(a)(4); or as otherwise defined in 14 CCR
Section 18982(a)(8).
“Compactor” means a mechanical apparatus that compresses materials together with the Container that
holds the compressed materials or the Container that holds the compressed materials if it is detached
from the mechanical compaction apparatus. Compactors include two (2) to eight (8) cubic yard Bin
Compactors serviced by front-end loader Collection vehicles and ten (10) to fifty (50) cubic yard Drop Box
Compactors serviced by roll-off Collection vehicles.
“Complaint” shall mean each written or orally communicated statement made by any Person, whether to
the City and conveyed to Contractor, or directly by Customer to Contractor, alleging: (1) non-performance,
or deficiencies in Contractor’s performance, of its duties under this Agreement; (2) a violation by
Contractor of this Agreement; or, (3) an SB 1383 Non-Compliance Complaint.
“Compost” or “Composting” (or any variation thereof) means the product resulting from the composting
process (as defined in 14 CCR Section 17896.2(a)(4)), as well as the composting process itself, consisting
of a controlled biological decomposition of Organic Materials yielding a safe and nuisance-free compost
product.
“Compostable Plastics” or “Compostable Plastic” means plastic materials that meet the BPI-certified
ASTM D6400 standard for Compostability. Compostable Plastics must be labeled as “Compostable” by the
manufacturer. Notwithstanding any other provision, Compostable Plastic is excluded from the definitions
of Organic Materials and its subcategories and is a Prohibited Container Contaminant, unless otherwise
agreed by City and Contractor.
“Construction and Demolition Debris (C&D)” includes discarded building materials, packaging, debris,
and rubble resulting from construction, alteration, remodeling, repair, or demolition operations on any
pavements, excavation projects, houses, Commercial buildings, or other structures, excluding Excluded
Waste. Construction and Demolition Debris includes rocks, soils, tree remains and other Yard Trimmings
that result from land clearing or land development operations in preparation for construction. C&D must
be Source-Separated, either by segregating mixed C&D materials from other types of material, or by
segregating individual types of C&D materials (e.g., wood-only or metal-only loads).
“C&D Collection Site(s)” means properties where construction and demolition work is performed as
evidenced by the City issuance of a land clearing, building, or demolition permit, or from a non-permitted
municipal project or as otherwise stated in the City Municipal Code.
“Container(s)” mean Bins, Carts, Compactors, and Drop Boxes.
“Contractor” means Recology South Bay (d/b/a Recology Cupertino), organized and operating under the
laws of the State.
“Contractor’s Compensation” means the monetary compensation received by Contractor (as described
in Article 8) in return for providing services in accordance with this Agreement.
EXHIBIT A
DEFINITIONS
December 3, 2020 Page A-5 City of Cupertino/Recology Franchise Exhibit A
“Contractor’s Contract Manager” means the Person designated by the Contractor to be the City’s primary
point of contact, primarily responsible for Collection operations and resolution of service requests and
Complaints. Contractor’s Contract Manager may negotiate and bind Contractor with respect to changes
in scope, dispute resolution, compensation adjustments, and service-related matters.
“Contractor’s Proposal” means the proposal submitted to the City by Contractor for provision of
Recyclable Materials, Organic Materials, and Solid Waste Collection and Processing services and Solid
Waste Transport for Disposal and certain supplemental written materials, which are included as Exhibit
G, G1, G2, G3, G4, and G5 to this Agreement and are incorporated by reference.
“County” means the County of Santa Clara, a political subdivision of the State of California.
“Courtesy Notices” means the notice provided to Customers as described in Section 4.10.3.
“Curb” or “Curbside” (or any variation thereof) means the cornered edging between the street and
sidewalk of a Public Street. Curb or Curbside also means and describes the location of a Collection
Container for pick-up, where such Container is placed on the Public Street against the face of the Curb, or
where no Curb exists, the Container is placed not more than five (5) feet from the outside edge of the
Public Street nearest the property’s entrance.
“Customer” means the Person whom Contractor submits its billing invoice to and collects payment from
for Collection services provided to a Premises. The Customer may be either the Occupant or Owner of the
Premises.
“Customer Type” means the Customer’s sector category, consisting of Single-Family, Multi-Family,
Commercial, Drop Box, and the City.
“Designated C&D Processing Facility” means the Newby Island Sanitary Landfill, owned and operated by
Republic Services Inc., to which Contractor Transports C&D for Processing, and/or any C&D Processing
Facility(ies) designated by the City during the Term pursuant to Section 3.2 to which Contractor shall
Transfer and/or Transport C&D for Processing.
“Designated Disposal Facility” means the Newby Island Sanitary Landfill, owned and operated by Republic
Services Inc., to which Contractor Transports Solid Waste for Disposal, and/or any Disposal Facility(ies)
designated by the City during the Term pursuant to Section 3.2 to which Contractor shall Transfer and/or
Transport Solid Waste or Residue for Disposal.
“Designated Facility(ies)” means any one of or any combination of the Designated C&D Processing
Facility, the Designated Recyclable Materials Processing Facility, or the Designated Disposal Facility.
“Designated Recyclable Materials Processing Facility” means a Recyclable Materials Processing
Facility(ies) as may be designated by the City during the Term pursuant to Section 3.2 to which Contractor
shall Transport Recyclable Materials for Processing in addition to or in lieu of the Approved Recyclable
Materials Processing Facility. The City may, at its sole discretion, require that Contractor subcontract to a
Designated Recyclable Materials Processing Facility(ies), or may itself directly contract with any
Designated Recyclable Materials Processing Facility(ies).
EXHIBIT A
DEFINITIONS
December 3, 2020 Page A-6 City of Cupertino/Recology Franchise Exhibit A
“Designated Waste” means non-Hazardous Waste that may pose special Disposal problems because of
its potential to contaminate the environment and that may be Disposed of only in Class II Disposal sites
or Class III Disposal sites pursuant to a variance issued by the California Department of Health Services.
Designated Waste consists of those substances classified as Designated Waste by the State, in 23 CCR
Section 2522 as may be amended from time to time.
“Discarded Materials” means Recyclable Materials, Organic Materials, Solid Waste, and C&D placed by a
Generator in a receptacle and/or at a location for the purposes of Collection by Contractor, excluding
Excluded Waste.
“Disposal” or “Dispose” (or any variation thereof) means the final disposition of Solid Waste or Processing
Residue at a Disposal Facility.
“Disposal Facility” means a landfill or other facility used for the ultimate Disposal of Solid Waste.
“Divert” or “Diversion” (or any variation thereof) means to prevent Discarded Materials from Disposal at
landfill or transformation facilities (including facilities using incineration, pyrolysis, distillation,
gasification, or biological conversion methods) through source reduction, Reuse, Recycling, Composting,
anaerobic digestion, or other method of Processing pursuant to the provisions of AB 939.
“Drop Box” means an open-top Container with a capacity of seven (7) to forty (40) cubic yards that is
serviced by a roll-off Collection vehicle.
“Dwelling Unit” means any individual living unit in a Single-Family or Multi-Family structure or building, a
mobile home, or a motor home located on a permanent site intended for, or capable of being utilized for,
residential living other than a hotel or motel.
“Edible Food” means food intended for human consumption. For the purposes of this Agreement, Edible
Food is not Solid Waste if it is recovered and not discarded. Nothing in this Agreement requires or
authorizes the recovery of Edible Food that does not meet the food safety requirements of the California
Retail Food Code. If the definition in 14 CCR Section 18982(a)(18) for Edible Food differs from this
definition, the definition in 14 CCR Section 18982(a)(18) shall apply to this Agreement.
“Effective Date” means the date on which the latter of the two Parties signs this Agreement.
“Environmental Laws” means all Federal and State statutes, and County, City, and regional agency
ordinances concerning public health, safety and the environment including, by way of example and not
limitation: AB 341; AB 939; AB 1826; the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, 42 U.S.C. § 9601 et seq. (CERCLA); the Resource Conservation and Recovery Act, 42
U.S.C. § 6902 et seq.; the Federal Clean Water Act, 33 U.S.C. § 1251 et seq.; the Toxic Substances Control
Act, 15 U.S.C. § 2601 et seq.; the Occupational Safety and Heal th Act, 29 U.S.C. § 651 et seq.; the California
Hazardous Waste Control Act, California Health and Safety Code § 25100 et seq.; the Carpenter-Presley-
Tanner Hazardous Substance Account Act, California Health and Safety Code § 25300 et seq.; the Porter-
Cologne Water Quality Control Act, California Water Code § 13000 et seq.; the Safe Drinking Water and
Toxic Enforcement Act, California Health and Safety Code § 25249.5 et seq.; as currently in force or as
hereafter amended, and all rules and regulations promulgated thereunder.
EXHIBIT A
DEFINITIONS
December 3, 2020 Page A-7 City of Cupertino/Recology Franchise Exhibit A
“Excluded Waste” means Hazardous Substances, Hazardous Waste, Infectious Waste, Designated Waste,
volatile, corrosive, biomedical, infectious, biohazardous, and toxic substances or material, waste that
Contractor reasonably believes would, as a result of or upon Disposal, be a violation of local, State or
Federal law, regulation or ordinance, including land use restrictions or conditions, waste that cannot be
Disposed of in Class III landfills, waste that in Contractor’s reasonable opinion would present a significant
risk to human health or the environment, cause a nuisance or otherwise create or expose Contractor or
the City to potential liability; but not including de minimis volumes or concentrations of waste of a type
and amount normally found in Residential Solid Waste after implementation of programs for the safe
Collection, Recycling, treatment, and Disposal of batteries and paint in compliance with Sections 41500
and 41802 of the California Public Resources Code. Excluded Waste does not include Used Motor Oil and
Filters, compact fluorescent bulbs (CFLs), or household batteries when properly placed for Collection by
Contractor as set forth in this Agreement. Notwithstanding any other provision, Excluded Waste is
excluded from the definitions of Recyclable Materials, Organic Materials, Solid Waste, C&D, and their
respective subcategories.
“Extra Bag Tag(s)” are tags approved by the City and provided by Contractor that may be purchased by
Single-Family Customers and affixed to a bag provided by Single-Family Customers for the Collection of
Discarded Material overages.
“E-Waste" means discarded electronic equipment including, but not limited to, televisions, computer
monitors, central processing units (CPUs), laptop computers, computer peripherals (including external
hard drives, keyboards, scanners, and mice), printers, copiers, facsimile machines, radios, stereos, stereo
speakers, VCRs, DVDs, camcorders, microwaves, telephones, cellular telephones, and other electronic
devices. Some E-Waste or components thereof may be Hazardous Waste or include Hazardous Substances
and thus require special handling, Processing, or Disposal.
“Federal” means belonging to, or pertaining to, the Federal government of the United States.
“Food Recovery” means actions to collect and distribute food for human consumption that otherwise
would be disposed, or as otherwise defined in 14 CCR Section 18982(a)(24).
“Food Recovery Organization” means an entity that primarily engages in the collection or re ceipt of Edible
Food from Commercial Edible Food Generators and distributes that Edible Food to the public for Food
Recovery either directly or through other entities, including, but not limited to:
A. A food bank as defined in Section 113783 of the Health and Safety Code;
B. A nonprofit charitable organization as defined in Section 113841 of the Health and Safety code;
and,
C. A nonprofit charitable temporary food facility as defined in Section 113842 of the Health and
Safety Code.
If the definition in 14 CCR Section 18982(a)(25) for Food Recov ery Organization differs from this definition,
the definition in 14 CCR Section 18982(a)(25) shall apply to this Agreement.
EXHIBIT A
DEFINITIONS
December 3, 2020 Page A-8 City of Cupertino/Recology Franchise Exhibit A
“Food Recovery Service” means a Person or entity that collects and transports Edible Food from a
Commercial Edible Food Generator to a Food Recovery Organization or other entities for Food Recovery;
or as otherwise defined in 14 CCR Section 18982(a)(26).
“Food Scraps" means those Discarded Materials that will decompose and/or putrefy including: (i) all
kitchen and table food waste; (ii) animal or vegetable waste that is generated during or results from the
storage, preparation, cooking or handling of food stuffs; and (iii) fruit waste, grain waste, dairy waste,
meat, bones, and fish waste; and, (iv) vegetable trimmings, houseplant trimmings and other compostable
Organic Waste common to the occupancy of Residential dwellings and generated inside such dwellings.
Food Scraps are a subset of Food Waste.
“Food-Soiled Paper” means Compostable paper material that has come in contact with Food Scraps or
liquid, such as, but not limited to, Compostable paper plates, paper coffee cups, napkins, pizza boxes, and
milk cartons.
“Food Waste” means Food Scraps and Food-Soiled Paper, and excludes Excluded Waste. Food Waste is a
subset of Organic Materials. Unless collected as Organic Materials, Food Waste must be Source
Separated.
“Franchise Fee” means the fee paid by Contractor to the City as described in Section 7.1.
“Generator” means any Person whose act or process produces Discarded Materials as defined in the
Public Resources Code, or whose act first causes Discarded Materials to become subject to Federal, State,
or local regulations.
“Gross Receipts” shall mean total cash receipts collected from Customers by Contractor for the provision
of services pursuant to this Agreement, without any deductions. Gross Receipts do not include revenues
from the sale of Recyclable Materials, including California Redemption Value revenues.
“Hauler Route” or “Route” means the designated itinerary or sequence of stops for each segment of the
Jurisdiction’s Collection service area, or as otherwise defined in 14 CCR Section 18982(a)(31.5).
“Hazardous Substance” means any of the following: (a) any substances defined, regulated or listed
(directly or by reference) as "Hazardous Substances", "hazardous materials", "Hazardous Wastes", "toxic
waste", "pollutant" or "toxic substances" or similarly identified as hazardous to human health or the
environment, in or pursuant to: (i) CERCLA; (ii) the Hazardous Materials Transportation Act, 49 USC §1802,
et seq.; (iii) the Resource Conservation and Recovery Act, 42 USC §6901 et seq.; (iv) the Clean Water Act,
33 USC §1251 et seq.; (v) California Health and Safety Code §§25115-25117, 25249.8, 25281, and 25316;
(vi) the Clean Air Act, 42 USC §7901 et seq.; and, (vii) California Water Code §13050; (b) any amendments,
rules, or regulations promulgated thereunder to such enumerated statutes or acts currently existing or
hereafter enacted; and, (c) any other hazardous or toxic substance, material, chemical, waste or pollutant
identified as hazardous or toxic or regulated under any other Applicable Law currently existing or
hereinafter enacted, including, without limitation, friable asbestos, polychlorinated biphenyl’s (PCBs),
petroleum, natural gas, and synthetic fuel products, and by-products.
“Hazardous Waste” means all substances defined as Hazardous Waste, acutely Hazardous Waste, or
extremely Hazardous Waste by the State in Health and Safety Code §25110.02, §25115, §25117, 22 CCR
EXHIBIT A
DEFINITIONS
December 3, 2020 Page A-9 City of Cupertino/Recology Franchise Exhibit A
Section 66261.3, et seq., 14 CCR Section 17402(a)(7), or in the future amendments to or recodifications
of such statutes or identified and listed as Hazardous Waste by the U.S. Environmental Protection Agency
(EPA), pursuant to the Federal Resource Conservation and Recovery Act (42 USC §6901 et seq.), all future
amendments thereto, and all rules and regulations promulgated thereunder. Hazardous Waste includes
hazardous wood waste.
“Holidays” are defined as New Year’s Day, Thanksgiving Day, and Christmas Day.
“Household Hazardous Waste” or “HHW” means Hazardous Waste generated at Residential Premises
within the City. HHW includes: paint, stain, varnish, thinner, adhesives, auto products such as old fuel,
Used Motor Oil and Filters, batteries, household batteries, fluorescent bulbs , tubes, cleaners and sprays,
pesticides, fertilizers and other garden products, needles, syringes, and lancets.
“Incompatible Material” or “Incompatibles” mean(s) human-made inert material, including, but not
limited to, glass, metal, plastic, and also includes Organic Waste that the receiving end-user, facility,
operation, property, or activity is not designed, permitted, or authorized to perform Organic Waste
recovery activities on as defined in 14 CCR Section 18983.1(b), or as otherwise defined by 14 CCR Section
17402(a)(7.5).
“Infectious Waste” means biomedical waste generated at hospitals, public or private medical clinics,
dental offices, research laboratories, pharmaceutical industries, blood banks, mortuaries, veterinary
facilities and other similar establishments that are identified in Health and Safety Code Section 25117.5
as may be amended from time to time.
“In-Home Recycling Container” refers to a small, easily portable tote bag with a capacity of at least three
(3) gallons to be included by Contractor in the Multi-Family Move-in Kit to facilitate convenient
accumulation of Recyclable Materials within a Multi-Family Dwelling Unit.
“Large Event” means an event, including, but not limited to, a sporting event or a flea market, that charges
an admission price, or is operated by a local agency, and serves an average of more than 2,000 individuals
per day of operation of the event, at a location that includes, but is not limited to, a public, nonprofit, or
privately owned park, parking lot, golf course, street system, or other open space when being used for an
event. If the definition in 14 CCR Section 18982(a)(38) differs from this definition, the definition in 14 CCR
Section 18982(a)(38) shall apply to this Agreement.
“Large Venue” means a permanent venue facility that annually seats or serves an average of more than
2,000 individuals within the grounds of the facility per day of operation of the venue facility. For purposes
of 14 CCR, Division 7, Chapter 12 and this Agreement, a venue facility includes, but is not limited to, a
public, nonprofit, or privately owned or operated stadium, amphitheater, arena, hall, amusement park,
conference or civic center, zoo, aquarium, airport, racetrack, horse track, performing arts center,
fairground, museum, theater, or other public attraction facility. For purposes of 14 CCR, Division 7,
Chapter 12 and this Agreement, a site under common ownership or control that includes more than one
Large Venue that is contiguous with other Large Venues in the site, is a single Large Venue. If the definition
in 14 CCR Section 18982(a)(39) differs from this definition, the definition in 14 CCR Section 18982(a)(39)
shall apply to this Agreement.
EXHIBIT A
DEFINITIONS
December 3, 2020 Page A-10 City of Cupertino/Recology Franchise Exhibit A
“Liquidated Damages” means the amounts due by Contractor for failure to meet specific quantifiable
standards of performance as described in Section 10.6 and Exhibit F.
“Move-in Kit” refers to a pre-prepared and standardized collection of useful items to be given by property
managers or Owners of Multi-Family Premises to new Multi-Family Occupants or by Contractor to Single-
Family Customers upon move-in to a Multi-Family or Single-Family Dwelling Unit. At a minimum, Multi-
Family Move-in Kits shall include a Multi-Family Recycling guide, an In-Home Recycling Container, and
stickers or other approved materials that clearly define acceptable materials and Prohibited Container
Contaminants in the Recycling and Composting programs. At a minimum, Single-Family Move-in Kits shall
include a Single-Family Recycling guide and stickers or other approved materials that clearly define
acceptable materials and Prohibited Container Contaminants in the Recycling and Composting programs.
All Move-in Kits shall also include information about how to request a kitchen Food Scraps container.
“Multi-Family” means any Residential Premises, other than a Single-Family Premises, with five (5) or more
Dwelling Units used for Residential purposes (regardless of whether residence therein is temporary or
permanent), including such Premises when combined in the same building with Commercial
establishments, that receive centralized or shared Collection service for all units on the Premises, which
are billed to one (1) Customer at one (1) address. Customers residing in mixed-use buildings,
condominiums, or other structures with five (5) or more Dwelling Units who receive service shall be
considered Multi-Family Customers.
“Mulch” means a layer of material applied on top of soil and, for the purposes of the Agreement, Mulch
shall conform with the following conditions, or conditions as otherwise specified in 14 CCR Section
18993.1(f)(4):
A. Meets or exceeds the physical contamination, maximum metal concentration, and pathogen
density standards for land applications specified in 14 CCR Section 17852(a)(24.5)(A)(1) through
(3).
B. Was produced at one or more of the following types of facilities:
1. A Compostable material handling operation or facility as defined in 14 CCR Section
17852(a)(12), that is permitted or authorized under 14 CCR, Division 7, other than a chipping
and grinding operation or facility as defined in 14 CCR Section 17852(a)(10);
2. A Transfer/Processing Facility or Transfer/Processing operation as defined in 14 CCR Section
17402(a)(30) and (31), respectively, that is permitted or authorized under 14 CCR, Division 7,
Chapter 12; or,
3. A Solid Waste landfill as defined in PRC Section 40195.1 that is permitted under 27 CCR,
Division 2.
“Municipal Code” means the Municipal Code of the City of Cupertino.
“Non-Compostable Paper” includes, but is not limited to, paper that is coated in a plastic material that
will not break down in the Composting process, or as otherwise defined in 14 CCR Section 18982(a)(41).
“Non-Collection Notices” means the notice provided to Customers as described in Section 4.10.3.
EXHIBIT A
DEFINITIONS
December 3, 2020 Page A-11 City of Cupertino/Recology Franchise Exhibit A
“Non-Conforming Carts” means Carts in service at Single-Family Customer Premises on the
Commencement Date that are either: (a) tan in color; (b) do not say “City of Cupertino;” or, (c) have logos
or identification for other organizations such as Recology, Norcal, or County of Santa Clara on them.
“Occupant” means the Person who occupies a Premises.
“On-Call Collection” means Collection services provided by Contractor to Customers upon Customer
request including, but not limited to, Collection of additional Discarded Materials beyond those Collected
on regular service days, Container steam cleaning service, and return-trip Collection service.
“Organic Materials” means Yard Trimmings, Food Waste, and Food-Soiled Paper, individually or
collectively. No Discarded Material shall be considered to be Organic Materials, however, unless it is
separated from Recyclable Materials and Solid Waste. Carpets, Non-Compostable Paper, textiles, and
Prohibited Container Contaminants shall not be Collected in Organic Materials Containers. Organic
Materials are a subset of Organic Waste.
“Organic Waste” means wastes containing material originated from living organisms and their metabolic
waste products including, but not limited to, food, Yard Trimmings, organic textiles and carpets, lumber,
wood, Paper Products, Printing and Writing Paper, manure, biosolids, digestate, and sludges, or as
otherwise defined in 14 CCR Section 18982(a)(46). Biosolids and digestate are as defined in 14 CCR Section
18982(a)(4) and 14 CCR Section 18982(a)(16.5), respectively.
“Owner” means the Person(s) holding legal title to real property and/or any improvements thereon, and
shall include the Person(s) listed on the latest equalized assessment roll of the County Assessor except to
the extent assignment of property title has changed since the most recent assessment.
“Paper Products” include, but are not limited to, paper janitorial supplies, cartons, wrapping, packaging,
file folders, hanging files, corrugated boxes, tissue, and toweling; or as otherwise defined in 14 CCR Section
18982(a)(51).
“Party” or “Parties” refers to the City and Contractor, individually or together.
“Person(s)” has the same meaning as in Section 40170 of the Public Resources Code, which states, as of
the Effective Date of this Agreement, that a Person includes an individual, firm, limited liability company,
association, partnership, political subdivision, government agency, municipality, industry, public or
private corporation, or any other entity whatsoever.
“Premises” means any land or building in the City where Recyclable Materials, Organic Materials, or Solid
Waste are generated or accumulated.
“Printing and Writing Paper” includes, but is not limited to, copy, xerographic, watermark, cotton fiber,
offset, forms, computer printout paper, white wove envelopes, manila envelopes, book paper, note pads,
writing tablets, newsprint, and other uncoated writing papers, posters, index cards, calendars, brochures,
reports, magazines, and publications; or as otherwise defined in 14 CCR Section 18982(a)(54).
“Process, Processed, or Processing” means the controlled separation, recovery, volume reduction,
conversion, Composting, or Recycling of Recyclable Materials, Organic Materials, Solid Waste, C&D, or
their respective subcategories including, but not limited to, organized, manual, automated, or mechanical
EXHIBIT A
DEFINITIONS
December 3, 2020 Page A-12 City of Cupertino/Recology Franchise Exhibit A
sorting, the use of vehicles for spreading of waste for the purpose of recovery, and/or includes the use of
conveyor belts, sorting lines, or volume reduction equipment, or as otherwise defined in 14 CCR Section
17402(a)(20).
“Processing Facility” means any plant or site used for the purpose of Processing Recyclable Materials,
Organic Materials, Solid Waste, C&D, or their respective subcategories for the purpose of making such
material available for Recycling or Reuse, or the facility for the Processing and/or Composting of Organic
Materials.
“Prohibited Container Contaminants” means the following: (i) Discarded Materials placed in the
Recyclable Materials Container that are not identified as acceptable Recyclable Materials for the City’s
Collection program; (ii) Discarded Materials placed in the Organic Materials Container that are not
identified as acceptable Organic Materials for the City’s Collection program; (iii) Discarded Materials
placed in the Solid Waste Container that are acceptable Recyclable Materials and/or Organic Materials to
be placed in the City’s Recyclable Materials or Organic Materials Containers or otherwise managed under
the City’s Collection program; and, (iv) Excluded Waste placed in any Container.
“Property Owner” means the Owner of real property, or as otherwise defined in 14 CCR Section
18982(a)(57).
“Public Street” means all the City-owned and maintained paved areas between the normal Curb line of a
roadway, including public parking lots, roadway dividers, and medians.
“Rate” means the maximum amount, expressed as a dollar unit, approved by the City that Contractor may
bill a Customer for providing services under this Agreement. A Rate has been established for each
individual Service Level and the Rates for Rate Period One are presented in Exhibit G3. The Rates approved
by the City are the maximum Rates that Contractor may charge a Customer and Contractor may, in its sole
discretion, charge any amount up to and including the maximum Rate approved by the City.
“Rate Period” means a twelve (12) month period, commencing February 1 and concluding January 31.
“Recyclable Materials” means those Discarded Materials that are capable of being Recycled in a
Commercially reasonable manner by the Approved Recyclable Materials Processing Facility, excluding
Excluded Waste. No Discarded Materials shall be considered Recyclable Materials unless such material is
separated from Organic Materials and Solid Waste. Recyclable Materials shall initially include, but not be
limited to: newspaper (including inserts, coupons, and store advertisements); mixed paper (including
office paper, computer paper, magazines, junk mail, catalogs, brown paper bags, brown paper,
paperboard, paper egg cartons, telephone books, grocery bags, colored paper, construction paper,
envelopes, legal pad backings, shoe boxes, gabletop beverage containers, cereal, and other similar food
boxes yet excluding paper tissues, paper towels, paper with plastic coating, paper contaminated with
food, wax paper, foil-lined paper and cartons, Tyvex non-tearing paper envelopes); corrugated Cardboard;
glass containers of any color (including brown, clear, and green glass bottles and jars); aluminum
(including beverage containers and small pieces of scrap metal); steel, tin or bi-metal cans; mixed plastics
such as plastic containers (no. 1 to 7), except expanded polystyrene (EPS); bottles including containers
made of HDPE, LDPE, or PET; clear film plastic (when clean, dry, and contained inside of a plastic bag).
EXHIBIT A
DEFINITIONS
December 3, 2020 Page A-13 City of Cupertino/Recology Franchise Exhibit A
“Recyclable Paper” includes, but is not limited to, Paper Products, Printing and Writing Paper, and other
Organic Waste that Generators place in the Recyclable Materials Container for the purposes of Collection,
Transport, and Recycling by Contractor and that exclude Excluded Waste. Recyclable Paper is a subset of
Organic Waste and of Recyclable Materials.
“Recycle” or “Recycling” means the process of sorting, cleansing, treating, and reconstituting at a
Recyclable Materials Processing Facility materials that would otherwise be Disposed of at a landfill for the
purpose of returning such materials to the economy in the form of raw materials for new, reused, or
reconstituted products. Recycling includes processes deemed to constitute a reduction of landfill Disposal
pursuant to 14 CCR, Division 7, Chapter 12, Article 2. Recycling does not include gasification or
transformation as defined in Public Resources Code Section 40201.
“Renewable Natural Gas” or “RNG” means gas derived from Organic Waste that has been Diverted from
a landfill and Processed at an in-vessel digestion facility that is permitted or otherwise authorized by 14
CCR to recover Organic Waste, or as otherwise defined in 14 CCR Section 18982(a)(62).
“Residential” shall mean of, from, or pertaining to a Single-Family Premises or Multi-Family Premises
including Single-Family homes, apartments, condominiums, Townhouse complexes, mobile home parks,
and cooperative apartments.
“Residual” or “Residue” means the Solid Waste destined for Disposal, further Transfer/Processing as
defined in 14 CCR Section 17402(a)(30) or 14 CCR Section 17402(a)(31), or transformation that remains
after Processing has taken place and is calculated in percent a s the weight of Residual divided by the total
incoming weight of materials.
“Reuse” or any variation thereof, means the use of material in the same or similar form as it was produced,
which might otherwise be discarded, or as otherwise defined in 14 CCR Section 17402.5(b)(2).
“Salvageable Material” (or “Salvaged Material”) means an object or material that results from salvaging,
where salvaging means the controlled separation of Solid Waste material that does not require further
processing for Reuse or Recycling prior to Transfer activities, or as otherwise defined by 14 CCR Section
17402(a)(24).
“SB 1383” means Senate Bill 1383 of 2016 approved by the Governor on Sep tember 19, 2016, which added
Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the Health and Safety Code, and added Chapter 13.1
(commencing with Section 42652) to Part 3 of Division 30 of the Public Resources Code, establishing
methane emissions reduction targets in a Statewide effort to reduce emissions of short-lived climate
pollutants as amended, supplemented, superseded, and replaced from time to time.
For the purposes of this Agreement, SB 1383 specifically refers to the Short-Lived Climate Pollutants
(SLCP): Organic Waste Reductions regulations developed by CalRecycle and adopted on November 10,
2020 that created Chapter 12 of 14 CCR, Division 7 and amended portions of regulations of 14 CCR and 27
CCR.
“Self-Hauler” or “Self-Haul” means a Person who hauls with their vehicle material they have generated
(including Discarded Materials, recovered material, or any other material) to another Person, or as
otherwise defined in 14 CCR Section 18982(a)(66). Self-Hauling includes occasions where an employee of
EXHIBIT A
DEFINITIONS
December 3, 2020 Page A-14 City of Cupertino/Recology Franchise Exhibit A
a Commercial Generator or family member of a Residential Generator hauls materials generated by other
Persons at such Premise. Self-Hauler also includes a Person who Back-Hauls waste, as defined in 14 CCR
Section 18982(a)(66)(A).
“Service Level” refers to the size of a Customer’s Container, the number of Containers of each type, and
the frequency of Collection service.
“Service Opportunity” shall mean each individual scheduled opportunity Contractor has to Collect from
a Container at a Customer’s location. For example, a Commercia l Customer receiving Recyclable Materials
Collection service two (2) times per week from two (2) Containers, Organic Materials Collection service
two (2) times per week from (2) Containers, and Solid Waste Collection service two (2) times per week
from two (2) Containers would have a total of twelve (12) Service Opportunities each week. Service
Opportunities shall be calculated based on the Service Levels presented in Contractor’s most recent
quarterly report to the City. A Single-Family Customer with three (3) Carts for Collection of Solid Waste,
Recyclable Materials, and Organic Materials would have a total of three (3) Service Opportunities each
week.
“Single-Family” means, notwithstanding any contrary definition in the City Code, any detached or
attached house or residence designed or used for occupancy by one (1) family, provided that Collection
service feasibly can be provided to such Premises as an independent unit, and the Owner or Occupant of
such independent unit is billed directly for the Collection service. Single-Family includes Townhouses and
each independent unit of duplex, tri-plex, or four-plex Residential structures, regardless of whether each
unit is separately billed for their specific Service Level.
“Solid Waste” means solid waste as defined in California Public Resources Code, Division 30, Part 1,
Chapter 2, §40191 and regulations promulgated hereunder. Solid Waste includes materials meeting the
requirements of this paragraph that Generators place in the Solid Waste Container for the purposes of
Collection and Transport to the Disposal Facility by Contractor. Excluded from the definition of Solid Waste
are Excluded Waste, C&D, Source Separated Recyclable Materials, Source Separated Organic Materials,
and radioactive waste. Notwithstanding any provision to the contrary, Solid Waste may include de minimis
volumes or concentrations of waste of a type and amount normally found in Residential Solid Waste after
implementation of programs for the safe Collection, Recycling, treatment, and Disposal of Household
Hazardous Waste in compliance with Section 41500 and 41802 of the California Public Resources Code as
may be amended from time to time. Solid Waste includes Salvagea ble Materials only when such materials
are included for Collection in a Solid Waste Container, not Source Separated from Solid Waste at the site
of generation.
“Solid Waste Fund Operations Fee” means the fee paid by Contractor to the City as described in Section
7.2.
“Source Separated” means the segregation, by the Generator, of materials designated for separate
Collection for some form of Recycling, Processing, Composting, recovery, or Reuse, such that the materials
are segregated from Solid Waste and placed in a Container designated for Collection of that type of
material (e.g., Recyclables in an Organic Materials Container would not be considered Source Separated).
“State” means the State of California.
EXHIBIT A
DEFINITIONS
December 3, 2020 Page A-15 City of Cupertino/Recology Franchise Exhibit A
“Subcontractor” means a Person who has entered into a contract, express or implied, with Contractor for
the performance of an act that is necessary for Contractor’s fulfillment of its obligations for providing
service under this Agreement. Vendors providing materials and supplies to Contractor shall not be
considered Subcontractors.
“Term” means the term of this Agreement, including extension periods if granted, as provided for in
Article 2.
“Tier One Commercial Edible Food Generator” means a Commercial Edible Food Generator that is one of
the following, each as defined in 14 CCR Section 18982:
A. Supermarket.
B. Grocery Store with a total facility size equal to or greater than 10,000 square feet.
C. Food Service Provider.
D. Food Distributor.
E. Wholesale Food Vendor.
If the definition in 14 CCR Section 18982(a)(73) of Tier One Commercial Edible Food Generator differs
from this definition, the definition in 14 CCR Section 18982(a)(73) shall apply to this Agreement.
“Tier Two Commercial Edible Food Generator” means a Commercial Edible Food Generator that is one
of the following, each as defined in 14 CCR Section 18982:
A. Restaurant with 250 or more seats, or a total facility size equal to or greater than 5,000
square feet.
B. Hotel with an on-site food facility and 200 or more rooms.
C. Health facility with an on-site food facility and 100 or more beds.
D. Large Venue.
E. Large Event.
F. A State agency with a cafeteria with 250 or more seats or total cafeteria facility size equal
to or greater than 5,000 square feet.
G. A local education agency with an on-site food facility. If the definition in 14 CCR Section
18982(a)(74) of Tier Two Commercial Edible Food Generator differs from this definition,
the definition in 14 CCR Section 18982(a)(74) shall apply to this Agreement.
“Ton” or “Tonnage” means a unit of measure for weight equivalent to two thousand (2,000) standard
pounds where each pound contains sixteen (16) ounces.
“Tonnage Baseline Diversion Percentage” means the Diversion percentage calculated in accordance with
Section 5.11.B for the period February 1, 2021 through December 31, 2021.
“Total Service Opportunities” shall mean the sum of all Service Opportunities in a given time period.
“Townhouse” means an attached or semi-attached Single-Family Premises within a group of attached or
semi-attached Single-Family Premises, regardless of whether the Premises is billed individually or through
a central account (e.g., homeowner association, property manager), wherein each unit maintains
individual Collection service subscription.
EXHIBIT A
DEFINITIONS
December 3, 2020 Page A-16 City of Cupertino/Recology Franchise Exhibit A
“Transfer” means the act of transferring the materials Collected by Contractor in its Route vehicles into
larger vehicles for Transport to other facilities for the purpose of Recycling, Processing, or Disposing of
such materials.
“Transportation” or “Transport” means the act of conveying Collected materials from one location to
another.
“Universal Waste” or “U-Waste” means all wastes as defined by Title 22, Subsections 66273.1 through
66273.9 of the California Code of Regulations. These include, but are not limited to, batteries, fluorescent
light bulbs, mercury switches, and E-Waste.
“Used Motor Oil and Filters” means used oil fluids for vehicles including motor oil, brake, transmission
and hydraulic fluids, crankcase and differential oils, lubricating oils for vehicles, and oil filters from
automobiles and light trucks.
“Used Oil Recovery Kit” means a kit containing: one (1) reusable plastic jug of at least one (1) gallon
capacity with a leak-proof watertight screw-on top to contain Used Motor Oil or used cooking oil; one (1)
six (6) mil plastic disposable resealable bag with double track seal of sufficient capacity to accommodate
one (1) Used Motor Oil Filter; and, a flyer, brochure, or other informational media approved by the City
intended to educate Customers about the Used Motor Oil and Filter Collection program and the benefits
resulting from the proper handling of Used Motor Oil and Filters. The Used Oil Recovery Kit is to be
provided to Customers by Contractor to recover Used Motor Oil and Filters and used cooking oil from
Single-Family residents.
“Working Days” means days that Contractor is required to provide regularly scheduled Collection services
under this Agreement.
“Yard Trimmings” means those Discarded Materials that will decompose and/or putrefy (including, but
not limited to, green trimmings, grass, weeds, leaves, prunings, branches, dead plants, brush, tree
trimmings, dead trees, small pieces of unpainted and untreated wood, and other types of Organic
Materials) resulting from normal yard and landscaping maintenance that may be specified in the City’s
Legislation for Collection and Processing as Organic Materials under this Agreement. Yard Trimming
includes materials meeting the requirements of this paragraph that Generators place in the Organic
Materials Container for the purposes of Collection, Transport, and Processing by Contractor and that
exclude Excluded Waste. Yard Trimmings does not include items herein defined as Excluded Waste. Yard
Trimmings are a subset of Organic Materials. Yard Trimmings placed for Collection may not exceed six (6)
inches in diameter and three (3) feet in length and must fit within Contractor-provided Container. Unless
collected as Organic Materials, Yard Trimmings must be Source Separated.
EXHIBIT B:
DIRECT SERVICES
EXHIBIT B
DIRECT SERVICES
December 3, 2020 Page B-1 City of Cupertino/Recology Franchise Exhibit B
The following Exhibits (B1 through B5) describe the programs that, in aggregate, represent the direct
services to be performed under this Agreement by Contractor.
Each of the following Exhibits (B1 through B5) present the programs to be provided to each Customer
Type by Contractor. Within each program description are specific requirements for the:
• Type and size of Containers or Service Levels to be offered by Contractor under each program;
• Frequency of service to be offered by Contractor to Customers;
• Location of service, including an indication of whether or not additional charges may apply if a
Customer selects a location that is more costly to serve (e.g., back-yard service);
• Materials that are acceptable or prohibited within the program;
• Provision of additional services to the Customer if the standard Service Levels are inadequate, either
on a regular or periodic basis, and an indication of whether or not additional charges may apply;
and/or,
• Other requirements and considerations of the program.
Contractor shall provide the services for each program described in accordance with the specific program
requirements detailed in Exhibits B1 through B5 and Contractor shall promote such programs using the
public education and outreach methods described in Exhibit C.
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EXHIBIT B1:
SINGLE-FAMILY RESIDENTIAL SERVICE
EXHIBIT B1
SINGLE-FAMILY RESIDENTIAL SERVICES
December 3, 2020 Page B1-1 City of Cupertino/Recology Franchise Exhibit B1
1. RECYCLABLE MATERIALS COLLECTION
Contractor shall Collect Recyclable Materials placed in Contractor-provided Containers one (1) time per
week from Single-Family Customers and Transport all Recyclable Materials to the Approved Recyclable
Materials Processing Facility for Processing.
Containers: Carts
Container Sizes: 32-, 64-, and 96-gallons (or comparable sizes approved by the City).
Standard Container size is 64-gallon. 96-gallon service shall be made available for
no additional charge, upon request by Customer.
Service Frequency: One (1) time per week on the same day as Organic Materials and Solid Waste
Collection services unless the Customer has received a Collection frequency
waiver for Recyclable Materials in accordance with Section 4.12.2, in which case
service frequency shall be not less than one (1) time per fourteen (14) days.
Service Location: Curbside
Acceptable Materials: Recyclable Materials
Prohibited Materials: Solid Waste, Organic Materials, Excluded Waste
Additional Service: Single-Family Customers shall receive one (1) Recyclable Materials Cart standard
and may request up to two (2) additional Recyclable Materials Carts at no
additional charge unless a Rate has been approved by the City. Contractor shall
provide additional Recyclable Materials Carts to Single-Family Customers upon
request and may charge the Rate approved by the City for additional Recyclable
Materials Cart service at a given Container size.
Contractor shall allow Single-Family Customers to place unlimited flattened and
bundled Cardboard (each bundle no larger than 3’ x 3’ x 12”), and additional
volumes of mixed Recyclable Materials contained in durable Customer-provided
Containers adjacent to the Recyclable Materials Cart on their regularly-scheduled
Collection day at no additional charge to the Customer. Such Customer-provided
Containers shall be Disposed of unless clearly marked otherwise.
Other Requirements: Contractor shall accept household batteries and CFLs in the Recyclable Materials
program, provided that those batteries and CFLs have been separately packaged
in a sealed, clear plastic bag and placed on top of the Recyclable Materials Cart.
Other Household Hazardous Waste shall be handled in accordance with Exhibit
B1, Section 9.
Contractor may refuse to Collect a Recyclable Materials Container in accordance
with Section 4.10.3 of this Agreement
2. ORGANIC MATERIALS COLLECTION
Contractor shall Collect Organic Materials placed in Contractor-provided Carts one (1) time per week from
Single-Family Customers and Transport all Organic Materials to the Approved Organic Materials
Processing Facility for Processing.
Containers: Carts
EXHIBIT B1
SINGLE-FAMILY RESIDENTIAL SERVICES
December 3, 2020 Page B1-2 City of Cupertino/Recology Franchise Exhibit B1
Container Sizes: 24-, 32-, 64, 96-gallons (or comparable size approved by the City).
Standard Container size is 96-gallons, or 24- or 32-gallons for Yard Trimmings
exempt Customers.
Service Frequency: One (1) time per week on the same day as Recyclable Materials and Solid Waste
Collection service.
Service Location: Curbside.
Acceptable Materials: Organic Materials (including Yard Trimmings, Food Waste, and Food-Soiled
Paper).
Prohibited Materials: Recyclable Materials, Solid Waste, Excluded Waste
Additional Service: Single-Family Customers shall receive one (1) Organic Materials Cart standard and
may request up to two (2) additional Organic Materials Carts at no additional
charge. Contractor shall provide additional Organic Materials Carts to Single-
Family Customers upon request and may charge the appropriate Rate approved
by the City for additional Organic Material Carts service at a given Container size.
Contractor shall allow Single-Family Customers to place additional volumes of
Organic Materials contained in durable Customer-provided Containers adjacent
to the Organic Material Cart on their regularly-scheduled Collection day at no
additional charge to the Customer. Such Customer-provided Containers shall be
Disposed of unless clearly marked otherwise. Customer-provided Containers shall
be in accordance with Section 5.6.
Until December 31, 2021 and subject to the provisions of the City’s Municipal
Code, Single-Family Customers that demonstrate they have no Yard Trimmings
for Collection are entitled to a smaller Container for Food Waste service at the
City-approved rate for Yard Trimmings exempt service at a given Container size.
Other Requirements: Contractor shall provide to each Single-Family Customer upon request a kitchen
container designed to contain Food Scraps prior to placement in the Customer’s
Organic Materials Cart. Contractor shall not be required to provide more than one
(1) kitchen container per Single-Family Premises during the Term, unless there is
a change in the Premises’ occupancy. Kitchen container specifications shall be
approved by the City prior to ordering and distribution.
Contractor may refuse to Collect an Organic Materials Container in accordance
with Section 4.10.3 of this Agreement.
3. SOLID WASTE COLLECTION
Contractor shall Collect Solid Waste placed in Contractor-provided Carts one (1) time per week from
Single-Family Customers and Transport all Solid Waste to the Designated Disposal Facility for Disposal.
Containers: Carts
Container Sizes: 24-, 32-, 64-, and 96-gallons (or comparable sizes approved by the City) as
requested by Customer.
Service Frequency: One (1) time per week on the same day as Recyclable Materials and Organic
Materials Collection service unless the Customer has received a Collection
frequency waiver for Solid Waste in accordance with Section 4.12.2, in which case
EXHIBIT B1
SINGLE-FAMILY RESIDENTIAL SERVICES
December 3, 2020 Page B1-3 City of Cupertino/Recology Franchise Exhibit B1
service frequency shall be not less than one (1) time per fourteen (14) days.
Service Location: Curbside
Acceptable Materials: Solid Waste
Prohibited Materials: Recyclable Materials, Organic Materials, Excluded Waste
Additional Service: Contractor shall provide additional Solid Waste Carts to Single-Family Customers
upon request and may charge the appropriate Rate approved by the City for
additional Solid Waste Cart service at a given Container size.
Additional pick-ups requested by a Customer, on days other than their regularly
scheduled Collection day, shall be available at the Rate approved by the City for
such service.
Single-Family Customers may purchase Extra Bag Tags for additional Solid Waste.
Solid Waste must be placed in a Customer-provided bag, with the Extra Bag Tag
affixed and clearly visible, and placed next to their Solid Waste Container for
Collection. Contractor shall Collect all properly placed bags labeled with Extra Bag
Tags and Customers shall not be required to schedule such extra service in
advance. Contractor shall make Extra Bag Tags readily available to Single-Family
Customers through the mail and at Contractor’s office at 1675 Rogers Avenue,
San Jose, CA 95112. Contractor shall maintain a sufficient inventory of Extra Bag
Tags to accommodate additional Solid Waste.
Other Requirements: None
4. USED OIL, FILTER, AND COOKING OIL COLLECTION
Contractor shall Collect Used Motor Oil and Filters and used cooking oil placed in a Contractor-provided
Used Oil Recovery Kit or a Customer-provided Container from Single-Family Customers and shall Recycle
all Used Motor Oil and Filters and used cooking oil Collected pursuant to this Agreement.
Containers: Used Oil Recovery Kit
Container Sizes: Contractor-provided 1-gallon filter bags and, 1-gallon oil jugs (screw-on lids);
and/or Customer-provided sealed plastic bag for filters; and/or Customer-
provided 1-gallon non-leaking plastic containers with tight-fitting lid or the
containers the new oil came in with tight-fitting lid (screw-on lids);
Service Frequency: Up to one (1) time per week on the same day as Solid Waste Collection service.
Service Location: Curbside (adjacent to Recyclable Materials Cart)
Acceptable Materials: Used Motor Oil and Filters, used cooking oil
Prohibited Materials: Recyclable Materials, Organic Materials, Solid Waste, Excluded Waste
Additional Service: Not applicable
Other Requirements: Contractor shall provide a Used Oil Recovery Kit to a Customer within three (3)
Working Days of Customer request, at no additional cost to Customer. Upon
Collection of Used Motor Oil and Filter from a Customer, Contractor shall leave a
clean and empty Used Oil Recovery Kit adjacent to the Recyclable Materials Cart.
Contractor shall Recycle the Used Motor Oil and Filters and used cooking oil only
with Persons who are authorized by the State of California to Recycle such
EXHIBIT B1
SINGLE-FAMILY RESIDENTIAL SERVICES
December 3, 2020 Page B1-4 City of Cupertino/Recology Franchise Exhibit B1
materials. In the event the Used Motor Oil and Filter and/or used cooking oil
Collected pursuant to this Agreement is contaminated to the extent that the
materials require Disposal as a Hazardous Waste, Contractor shall Dispose of such
materials, at Contractor’s own cost and expense in accordance with Applicable
Law.
Contractor shall include in its monthly report, as provided in Exhibit D, the
number of instances of any contamination that renders the Used Motor Oil and
Filter or used cooking oil unacceptable for Recycling or that requires Disposal as
Hazardous Waste.
Contractor shall keep all Used Motor Oil and Filters and used cooking oil Collected
pursuant to this Agreement segregated from other materials.
Contractor may refuse to Collect Used Motor Oil and Filter if it is not contained in
an approved Used Oil Recovery Kit, provided that Contractor leaves a Non-
Collection Notice that explains the reason for non-Collection, and also leaves a
clean and empty Used Oil Recovery Kit adjacent to the refused Used Motor Oil
and Filter set-out. Contractor may refuse to Collect a Used Motor Oil Recovery
Kit that contains liquid other than Used Motor Oil or cooking oil, provided that
Contractor leaves a Non-Collection Notice that explains the reason for non-
Collection.
5. ON-CALL BULKY ITEM AND BIN-BY-THE-DAY COLLECTION
Contractor shall Collect Bulky Items and other materials described herein from Single-Family Customers.
Upon Customer request, Contractor shall provide Bin-by-the-Day service to Single Family Customers at
the City-approved Rate for Bin-by-the-Day service at a given Container size. Contractor shall Transport all
Collected materials to the appropriate Approved Facility for Reuse, Recycling, Processing, or Disposal.
Containers: 4-, 6-, 7-cubic yards for Bin-by-the-Day service
(or comparable sizes approved by the City)
Service Level: For Bulky Item Collection, up to two-hundred (200) pounds per item; total volume
not to exceed two (2) cubic yards.
Service Frequency: For Bulky Item Collection, up to two (2) times per year.
For Bin-by-the-Day, on-call for a period not to exceed seven (7) consecutive
calendar days.
Service Location: Curbside
Acceptable Materials: For Bulky Item Collection, Bulky Items.
For Bin-by-the-Day, Bulky Items, Recyclable Materials, E-Waste, U-Waste, Yard
Trimmings, and Solid Waste.
Prohibited Materials: Food Scraps, Hazardous Waste, abandoned automobiles, trees, Excluded Waste
or any single item (e.g., large auto parts, tires, etc.) that exceeds fifty (50) pounds
in weight.
Additional Service: Contractor shall provide up to two (2) Bulky Item Collections per year to Single-
Family Customers at no additional cost, and may charge the Rate approved by the
City for any additional Bulky Item Collections requested by the Customer.
EXHIBIT B1
SINGLE-FAMILY RESIDENTIAL SERVICES
December 3, 2020 Page B1-5 City of Cupertino/Recology Franchise Exhibit B1
Single-Family Customers may request Bin-by-the-Day service at the City-
approved Rate for Bin-by-the-Day service at a given Container size.
Other Requirements: Contractor shall Collect Yard Trimmings separately from acceptable materials
described in this Exhibit B1, Section 5. Upon Customer request, Contractor shall
provide separate On-Call Collection service for Yard Trimmings. Contractor shall
Collect up to six (6) thirty-two (32) gallon Carts, or the equivalent volume of paper
garden bags, of Yard Trimmings per scheduled on-call Yard Trimmings Collection
service.
Contractor shall not Dispose of materials Collected through the on-call Bulky Item
Collection program unless the materials cannot be reused, Recycled, or
Processed.
6. HOLIDAY TREE COLLECTION
Annually, commencing the day after December 25 and four (4) weeks thereafter, Contractor shall Collect
holiday trees from Single-Family Customers. Customers are required to place the holiday trees Curbside
on the Customer’s regularly scheduled Collection day. Holiday trees must be removed from stands, cut
into lengths no longer than six (6) feet, and be free of ornaments, garlands, tinsel, or other decorations.
Contractor shall not be required to Collect holiday trees that do not meet the aforementioned criteria. In
accordance with Section 4.10.3, Contractor shall affix a Non-Collection Notice to any non-Collected
holiday tree informing the Customer of the reason(s) for non-Collection. Contractor shall deliver all
Collected holiday trees to the Approved Organic Materials Processing Facility for Processing.
Holiday tree Collection services shall be provided at no additional cost to the City or the Customer.
7. ALTERNATIVE SERVICE LOCATION FOR DISABLED SINGLE-FAMILY CUSTOMERS
Contractor shall allow for Persons that have a disability as defined by the Americans with Disabilities Act
(which means Public Law 101-336, 104 Stat. 327, 42 U.S.C. 12101-12213 and 27 U.S.C. 225 and 611, and
all Federal rules and regulations relating thereto) that are Occupants of Single-Family Premises to receive
Collection services from the back yard or side yard of the Premises at no extra charge to the Customer,
provided the household contains no non-disabled adult residents. The City shall review all applications
(which shall include statements from physicians) made by Customers to determine conformance with this
exemption provision and shall grant exemptions, if applicable. The City shall require recipients of this
service to re-verify annually that they meet eligibility requirements. Upon Customer request, Contractor
may make such alternative service locations available to Single-Family Customers that do not have a
disability (as defined herein) at the Rate approved by the City for alternative location service at a given
Container size.
8. CONTAINER SHARING FOR TOWNHOUSE PREMISES
In special circumstances, for Customers with space limitations and upon approval by the City Contract
Manager, Contractor shall permit Townhouse Customers to share Discarded Materials service with other
geographically proximate Customers. Such shared service shall be performed, and billed, as if it were being
provided to a single Customer, with the exception that Contractor shall require all Customers sharing a
single service account to identify a “Primary Responsible Party”, which will serve as the singular point of
contact for communication and billing from Contractor and the City, along with a list of all addresses with
which the Primary Responsible Party will share service.
EXHIBIT B1
SINGLE-FAMILY RESIDENTIAL SERVICES
December 3, 2020 Page B1-6 City of Cupertino/Recology Franchise Exhibit B1
9. HOUSEHOLD HAZARDOUS WASTE
Household Hazardous Waste (HHW) shall be handled through the Santa Clara County HHW Drop-Off
Program. Contractor is required to promote County HHW Programs in accordance with Exhibit C.
Contractor and the City shall encourage use of extended producer responsibility programs such as
PaintCare and Med-Project, where appropriate.
10. BACKYARD COMPOST AND WORM BIN DELIVERY
Single-Family residents who complete Compost education workshops provided by the University of
California Cooperative Extension (UCCE), or an equitable program as approved by the City Contract
Manager, shall be allowed to request and receive one City-approved Compost or vermicompost bin per
household at no cost, subject to availability. Up to sixty (60) bins per year shall be purchased by the City
and delivered to Contractor for storage and delivery to Single Family residents.
EXHIBIT B2:
MULTI-FAMILY RESIDENTIAL SERVICES
EXHIBIT B2
MULTI-FAMILY RESIDENTIAL SERVICES
December 3, 2020 Page B2-1 City of Cupertino/Recology Franchise Exhibit B2
1. RECYCLABLE MATERIALS COLLECTION
Contractor shall Collect Recyclable Materials placed in Contractor-provided Containers from Multi-Family
Customers and shall Transport all Recyclable Materials to the Approved Recyclable Materials Processing
Facility for Processing.
Containers: Carts, Bins
Container Sizes: 32-, 64-, and 96-gallon Carts (or comparable size approved by the City); and
1-, 2-, 3-, 4-, 5-, 6-, and 8-cubic yard Bins as requested by Customer
Service Frequency: Up to six (6) times per week but not less than one (1) time per week (as requested
by Customer), unless the Customer has received a Collection frequency waiver
for Recyclable Materials in accordance with Section 4.12.2, in which case service
frequency shall be not less than one (1) time per fourteen (14) days.
Service Location: Curbside or other Customer-selected service location at the Multi-Family
Premises.
Acceptable Materials: Recyclable Materials
Prohibited Materials: Organic Materials, Solid Waste, Excluded Waste
Additional Service: Special pick-ups requested by a Customer, on days other than their regularly
scheduled Collection day, will be available at the Rate approved by the City for
additional Recyclable Materials Container service at a given Container size. Such
additional picks-ups can be scheduled equating to up to six (6) days per week total
service.
Other Requirements: Contractor shall offer to all Multi-Family Dwelling Units personal recycling totes
as part of Move-in-Kits designed to contain Recyclable Materials prior to
placement in the Recyclable Materials Container. Personal recycling tote
specifications shall be approved by the City prior to ordering and distribution.
Contractor shall accept household batteries and CFLs in the Recyclable Materials
program, provided that those batteries and CFLs have been collected by the
property manager in a centrally located collection Container, and subsequently
packaged in a sealed, clear plastic bag and placed in mutually determined
collection location for Collection. The Customer must notify the Contractor in
advance according to Contractor’s standard procedures before setting out
batteries and CFLs (such procedures subject to approval by the City Contract
Manager). Other Household Hazardous Waste shall be handled in accordance
with Exhibit B2, Section 6.
Contractor may refuse to Collect a Recyclable Materials Container in accordance
with Section 4.10.3 of this Agreement.
Contractor shall provide Collection service in accordance with Section 5.3.
2. ORGANIC MATERIALS COLLECTION
Contractor shall Collect Organic Materials in Contractor-provided Carts not less than one (1) time per week
from Multi-Family Customers and Transport all Organic Materials to the Approved Organic Materials
Processing Facility for Processing.
Containers: Carts, Bins
EXHIBIT B2
MULTI-FAMILY RESIDENTIAL SERVICES
December 3, 2020 Page B2-2 City of Cupertino/Recology Franchise Exhibit B2
Container Sizes: 24- 32-, 64-, and 96-gallon Carts (or comparable size approved by the City); and,
1-, 2-, 3-, and 4-cubic yard Bins as requested by Customer.
Service Frequency: Up to six (6) times per week but not less than one (1) time per week, as requested
by the Multi-Family Customer.
Service Location: Curbside or other Customer-selected service location at the Multi-Family
Premises.
Acceptable Materials: Organic Materials (including Yard Trimmings, Food Waste, and Food-Soiled
Paper).
Prohibited Materials: Recyclable Materials, Solid Waste, Excluded Waste
Additional Service: Special pick-ups requested by a Customer, on days other than their regularly
scheduled Collection day, will be available at Rate approved by the City for
additional Organic Material Container service at a given Container size. Such
additional picks-ups can be scheduled equating to up to six (6) days per week total
service.
Other Requirements: Contractor will contact each building’s Owner or property manager to inform
them of the availability of kitchen containers for Food Scraps. Upon request by
the building’s Owner or Property Manager, Contractor shall provide to all Multi-
Family Dwelling Units in the building, kitchen containers designed to contain Food
Scraps prior to placement in the Customer’s Organic Materials Container.
Contractor shall not be required to provide more than one (1) kitchen container
per Multi-Family Dwelling Unit during the Term, unless there is a change in the
unit’s occupancy. Kitchen container specifications shall be approved by the City
prior to ordering and distribution.
Contractor shall provide Collection service in accordance with Section 5.3.
Contractor may refuse to Collect an Organic Materials Container in accordance
with Section 4.10.3 of this Agreement.
3. SOLID WASTE COLLECTION
Contractor shall Collect Solid Waste placed in Contractor-provided Containers not less than one (1) time
per week from Multi-Family Customers and Transport all Solid Waste to the Designated Disposal Facility
for Disposal.
Containers: Carts, Bins
Container Sizes: 24-, 32-, 64-, and 96-gallon Carts (or comparable size approved by the City); and
1-, 2-, 3-, 4-, 5-, 6-, and 8-cubic yard Bins as requested by Customer.
Service Frequency: Up to six (6) times per week but not less than one (1) time per week, as requested
by Customer, unless the Customer has received a Collection frequency waiver for
Solid Waste in accordance with Section 4.12.2, in which case service frequency
shall be not less than one (1) time per fourteen (14) days.
Service Location: Curbside or other Customer-selected service location at the Multi-Family
Premises.
Acceptable Materials: Solid Waste
Prohibited Materials: Recyclable Materials, Organic Materials, Excluded Waste
EXHIBIT B2
MULTI-FAMILY RESIDENTIAL SERVICES
December 3, 2020 Page B2-3 City of Cupertino/Recology Franchise Exhibit B2
Additional Service: Special pick-ups requested by a Customer, on days other than their regularly
scheduled Collection day, will be available at the Rate approved by the City for
additional Solid Waste Container service at a given Container s ize. Such additional
picks ups can be scheduled equating to up to three (3) days per week total service.
Other Requirements: Contractor shall provide Collection service in accordance with Section 5.3.
4. ON-CALL BULKY ITEM AND BIN-BY-THE-DAY COLLECTION
Contractor shall Collect Bulky Items from Multi-Family Customers upon request made by the property
manager. Multi-Family Customers may request Bin-by-the-Day service through the property manager at
a City-approved Rate. Contractor shall Transport all Collected materials to the appropriate Approved
Facility for Processing or Disposal.
Containers: 4-, 6-, 7-cubic yards for Bin-by-the-Day service (or comparable sizes approved
by the City).
Service Level: For Bulky Item Collection, up to two-hundred (200) pounds per item; total volume
does not exceed two (2) cubic yards.
Property managers shall schedule on-call Bulky Item and Bin-by-the Day pickups
for their Occupants.
Service Frequency: For Bulky Item Collection, up to two (2) times per year per Multi-Family Dwelling
Unit at no additional charge.
For Bin-by-the-Day, on-call for a period not to exceed seven (7) consecutive
calendar days.
Service Location: Curbside or other agreed-upon service location at the Multi-Family Premises.
Acceptable Materials: For Bulky Item Collection: Bulky Items
For Bin-by-the-Day Service: Recyclable Materials, E-Waste, U-Waste, Yard
Trimmings, and Solid Waste
Prohibited Materials: Food Scraps, Hazardous Waste, abandoned automobiles, trees, Excluded Waste
or any single item (e.g., large auto parts, etc.) that exceeds fifty (50) pounds in
weight.
Additional Service: Contractor shall provide up to two (2) Bulky Item Collections per year to each
Multi-Family Dwelling Unit at no additional cost, and may charge the Rate
approved by the City for additional Bulky-Item service.
Multi-Family Customers may request Bin-by-the-Day service at a City-approved
Rate.
Other Requirements: Contractor shall Collect Yard Trimmings separately from acceptable materials
described in this Exhibit B2, Section 4. Upon Customer request, Contractor shall
provide separate On-Call Collection service for Yard Trimmings. Contractor shall
Collect up to six (6) thirty-two (32) gallon Carts, or the equivalent volume of paper
garden bags, of Yard Trimmings per scheduled on-call Yard Trimmings Collection
service. Contractor shall Transport Yard Trimmings to the Approved Organic
Materials Processing Facility. Contractor shall not Dispose of materials Collected
through the on-call Bulky Item Collection program unless the materials cannot be
Reused, Recycled, or Processed. Contractor shall Process and Dispose of Bulky
Items Collected from Customers in accordance with the following hierarchy: (1)
EXHIBIT B2
MULTI-FAMILY RESIDENTIAL SERVICES
December 3, 2020 Page B2-4 City of Cupertino/Recology Franchise Exhibit B2
Reuse as is (where energy efficiency is not compromised); (2) disassemble for
Reuse or Recycling; (3) Recycle or Compost; and if none of the other options are
practicable, (4) Dispose.
5. HOLIDAY TREE COLLECTION
Annually, commencing the day after December 25 and four (4) weeks thereafter, or as otherwise
approved by the City Contract Manager, Contractor shall Collect holiday trees from Multi-Family
Customers at a mutually agreed upon time, date, and designated Collection location, as arranged by
Contractor and each Multi-Family property owner or manager. Contractor shall offer each Multi-Family
property owner or manager the option to receive holiday tree Collection service in Bins or Drop Boxes,
provided by Contractor for such service. Contractor shall also offer each Multi-Family property owner or
manager the option to receive un-containerized holiday tree Collection service Curbside, or from
designated location at the Multi-Family Premises mutually agreed upon between Contractor and the
property owner or manager.
Holiday trees must be removed from stands; cut into lengths no longer than six (6) feet; and, be free of
ornaments, garlands, tinsel, or other decorations. Contractor shall not be required to Collect holiday trees
that do not meet the aforementioned criteria and/or are not pla ced at the agreed upon Collection location
and time period. In accordance with Section 4.10.3, Contractor shall affix a Non-Collection Notice to any
non-Collected Bin or Drop Box intended for the Collection of holiday trees. Contractor shall deliver all
Collected holiday trees to the Approved Organic Materials Processing Facility for Processing.
Holiday tree Collection services shall be provided at no additional cost to the City or the Customer.
6. HOUSEHOLD HAZARDOUS WASTE
Household Hazardous Waste (HHW) shall be handled through the Santa Clara County HHW Drop-Off
Program. Contractor is required to promote County HHW Programs in accordance with Exhibit C.
Contractor and the City shall encourage use of extended producer responsibility programs such as
PaintCare and Med-Project, where appropriate.
EXHIBIT B3:
COMMERCIAL SERVICES
EXHIBIT B3
COMMERCIAL SERVICES
December 3, 2020 Page B3-1 City of Cupertino/Recology Franchise Exhibit B3
1. RECYCLABLE MATERIALS COLLECTION
Contractor shall Collect Recyclable Materials placed in Contractor-provided Containers from Commercial
Customers and Transport all Recyclable Materials to the Approved Recyclable Materials Processing Facility
for Processing.
Containers: Carts, Bins, Drop Boxes, and Compactors
Container Sizes: 32-, 64-, and 96-gallon Carts (or comparable size approved by the City);
1-, 2-, 3-, 4-, 5-, 6-, and 8- cubic yard Bins;
2-, 3-, and 4-cubic yard Bin Compactors, and,
8-, 16, 20-, 25-, 30-, and 40- cubic yard Drop Boxes; or Customer owned
Compactors as requested by Customer.
Service Frequency: Up to six (6) times per week (Monday through Saturday), but not less than one
(1) time per week, as requested by Customer unless the Customer has received a
Collection frequency waiver for Recyclable Materials in accordance with Section
4.12.2, in which case service frequency shall be not less than one (1) time per
fourteen (14) days. Seven (7) day Collection service (Monday through Sunday)
shall be available if Customer gives at least one (1) week advanced notice to
Contractor.
Service Location: Curbside or other Customer-selected service location at the Commercial
Premises.
Acceptable Materials: Recyclable Materials
Prohibited Materials: Organic Materials, Solid Waste, Excluded Waste
Additional Service: Special pick-ups requested by a Customer, on days other than their regularly
scheduled Collection day, will be available at the Rate approved by the City for
additional Recyclable Materials Container service at a given Container size. Such
additional picks-ups can be scheduled equating to up to six (6) days per week total
service.
Other Requirements: Contractor may refuse to Collect a Recyclable Materials Container in accordance
with Section 4.10.3 of this Agreement.
Contractor shall provide Collection service in accordance with Section 5.3.
2. ORGANIC MATERIALS COLLECTION
Contractor shall Collect Organic Materials placed in Contractor-provided Containers not less than one (1)
time per week from Commercial Customers and Transport all Organic Materials to the Approved Organic
Materials Processing Facility for Processing.
Containers: Carts, Bins, Compactors
Container Sizes: 24-, 32-, 64-, and 96-gallon Carts (or comparable size approved by the City);
1-, 2-, 3-, and 4-cubic yard Bins; and Customer-owned Compactors as requested
by Customer.
Service Frequency: Up to six (6) times per week, but not less than one (1) time per week, as requested
by Customer. Seven (7) day Collection service (Monday through Sunday) shall be
available if Customer gives at least one (1) week advanced notice to Contractor.
Service Location: Curbside or other Customer-selected service location at the Commercial
EXHIBIT B3
COMMERCIAL SERVICES
December 3, 2020 Page B3-2 City of Cupertino/Recology Franchise Exhibit B3
Premises.
Acceptable Materials: Organic Materials (including Yard Trimmings, Food Scraps, and Food-Soiled
Paper).
Prohibited Materials: Recyclable Materials, Solid Waste, Excluded Waste
Additional Service: Special pick-ups requested by a Customer, on days other than their regularly
scheduled Collection day, will be available at the Rate approved by the City for
additional Organic Materials Container service at a given Container size. Such
additional picks-ups can be scheduled equating to up to six (6) days per week total
service.
Other Requirements: Contractor may refuse to Collect an Organic Materials Container in accordance
with Section 4.10.3 of this Agreement.
Contractor shall provide Collection service in accordance with Section 5.3.
3. SOLID WASTE COLLECTION
Contractor shall Collect Solid Waste placed in Contractor-provided Containers not less than one (1) time
per week from Commercial Customers and Transport all Solid Waste to the Designated Disposal Facility
for Disposal. Solid Waste Collection services shall be provided to Commercial Customers by subscription.
Containers: Carts, Bins, Drop Boxes, Compactors.
Container Sizes: 24-, 32-, 64-, and 96-gallon Carts (or comparable size approved by the City);
1-, 2-, 3-, 4-, 5-, 6-, and 8- cubic yard Bins;
2-, 3-, and 4-cubic yard Bin Compactors, and,
8-, 16-, 20-, 25-, 30-, and 40- cubic yard Drop Boxes; or Customer owned
Compactors as requested by Customer.
Service Frequency: Up to six (6) times per week but not less than one (1) time per week, and unless
a waiver has been granted pursuant to Section 4.12.2, as requested by Customer.
Service Location: Curbside or other Customer-selected service location at the Commercial
Premises.
Acceptable Materials: Solid Waste
Prohibited Materials: Recyclable Materials, Organic Materials, Excluded Waste
Additional Service: Special pick-ups requested by a Customer, on days other than their regularly
scheduled Collection day, will be available at the Rate approved by the City for
additional Solid Waste Container service at a given Container s ize. Such additional
picks-ups can be scheduled equating to up to six (6) days per week total service.
Other Requirements: Contractor shall provide Collection service in accordance with Section 5.3.
4. BIN-BY-THE-DAY SERVICE
Upon Customer request, Contractor shall Collect Recyclable Materials, Organic Materials, Solid Waste,
and other materials described herein from Commercial Customers. Contractor shall Transport all
Collected materials to the appropriate Approved Facility for Reuse, Processing, or Disposal. Contractor
shall provide such service to Commercial Customers at the Rate approved by the City for Bin-by-the-Day
service at a given Container size.
Containers: 1-, 2-, 3-, 4-, 5-, 6-, and 8- cubic yard Bins.
EXHIBIT B3
COMMERCIAL SERVICES
December 3, 2020 Page B3-3 City of Cupertino/Recology Franchise Exhibit B3
Service Frequency: On-call for a period not to exceed seven (7) consecutive calendar days.
Service Location: Curbside or other agreed-upon service location at the Commercial Premises;
additional charges may apply if the service location is greater than twenty-five
(25) feet from the nearest point that a Collection vehicle can access from a paved
surface.
Acceptable Materials: Recyclable Materials, E-Waste, U-Waste, Yard Trimmings, and Solid Waste
Prohibited Materials: Food Scraps, Hazardous Waste, abandoned automobiles, trees, Excluded Waste
or any single item (e.g., large auto parts, etc.) that exceeds two-hundred (200)
pounds in weight.
Other Requirements: Contractor shall provide the service to the Customer within one (1) Working Day
of the Customer’s requested service date, as mutually agreed upon by the
Customer and Contractor.
5. COMMERCIAL CONTAINER SHARING
In special circumstances, for Customers with significant space limitations and upon approval by the City
Contract Manager and Contractor, Contractor shall permit Commercial Customers to share Discarded
Materials service with other geographically proximate Commercial Customers. Such shared service shall
be performed and billed as if it were being provided to a single Customer, with the exception that
Contractor shall require all Customers sharing a single service account to identify a “Primary Responsible
Party”, which will serve as the singular point of contact for communication and billing from Contractor
and the City, along with a list of all addresses with which the Primary Responsible Party will share service.
6. CONSTRUCTION & DEMOLITION MATERIAL COLLECTION
A. General. Contractor shall Collect C&D from Customers that directly subscribe to its Collection
services. Contractor shall charge Customers for C&D Collection services at City-approved Rates.
B. Acceptable Material. Contractor may Collect C&D from construction, remodeling, repair, or
demolition operations. C&D may be Source-Separated mixed materials or Source Separated
individual materials (e.g., wood-only or metal-only loads). C&D may contain only de minimis
amounts of Solid Waste generated at the C&D Collection Sites.
C. Transport and Processing. Contractor shall Deliver C&D to the Designated C&D Processing Facility
for Processing.
D. Container Types and Collection Frequency. Contractor shall offer Customers various size Drop
Boxes for Collection of C&D, subject to review and approval by the City Contract Manager. C&D
Containers shall conform to all requirements of Section 5.6 of this Agreement. After the Drop Box
has been delivered, Contractor shall provide requested Collection of C&D materials within two (2)
Working Days of a Customer request.
E. Education Information. Contractor shall provide Customers with City-approved educational
information on best practices for C&D Recycling and Reuse and proper separation of materials for
Collection as described in Section 4.7. As directed by the City, Contractor shall label or install signs
on Bins and Drop Boxes identifying allowable and non-allowable materials for Collection in the
C&D Containers. Signs shall be a minimum size of one (1) foot by two (2) feet and lettering on
EXHIBIT B3
COMMERCIAL SERVICES
December 3, 2020 Page B3-4 City of Cupertino/Recology Franchise Exhibit B3
signs shall be a minimum of three (3) inches high. Signs shall be affixed to the front and both sides
of each Bin and Drop Box.
F. Record Keeping and Reporting. Contractor shall submit C&D Tonnage information and other data
pursuant to Exhibit D of the Agreement.
EXHIBIT B4:
CITY SERVICES
EXHIBIT B4
CITY SERVICES
December 3, 2020 Page B4-1 City of Cupertino/Recology Franchise Exhibit B4
1. COMMERCIAL CUSTOMER SERVICES TO CITY FACILITIES
Contractor shall Collect Recyclable Materials, Organic Materials, and Solid Waste from City facilities in the
same manner as those services are provided to Commercial Customers. Contractor shall initially provide
service to all existing City facilities at the locations and Service Levels set forth in Exhibit B5. City may
change Service Levels to the facilities identified in Exhibit B5, and/or may add service to any future City
facilities. Contractor shall provide such changed or added service at no cost to City, provided that the
total cost of servicing all City facilities does not exceed by more than ten percent (10%) the total cost of
servicing the City facilities identified in Exhibit B5 at the Service Levels identified in Exhibit B5. Such cost
comparison shall be calculated using the Rates in effect at the time the comparison is made. Any services
provided in excess of the aforementioned cap shall be charged to City at the then-applicable Rates. If such
amounts are not paid by City, Contractor shall be entitled to recover them as an “other adjustment” in
the next annual Rate adjustment. The two hundred sixty (260) temporary Drop Box hauls provided for in
Exhibit B5, and the eight (8) City-sponsored or hosted special events provided for in Section 4.6, are
excluded from the aforementioned cost comparison and cap.
2. EMERGENCY SERVICES
Contractor shall provide emergency services (i.e., special collections, Transport, Processing, and Disposal)
at the request of the City Contract Manager in the event of major accidents, disruptions, or natural
calamities guided by the City of Cupertino’s Disaster Debris Plan, as it may be adopted and amended from
time to time during the Term of this Agreement. Contractor shall be capable of providing emergency
services within twenty-four (24) hours of notification by the City Contract Manager or as soon thereafter
as is reasonably practical in light of the circumstances. For any services that exceed the scope of services
under this Agreement, Contractor shall be entitled to compensation at the emergency service Rates set
forth in Exhibit E to of this Agreement. The City shall have discretion in the method of such compensation
between direct payments by the City and allowing such costs to be included in the adjustment of Rates
for the following Rate Period. The City reserves the right to engage third-party haulers for the purpose of
providing additional services to address emergencies.
3. CITY-WIDE RECYCLING EVENTS
Contractor shall provide four (4) free City-Wide Recycling Events (Environmental Days) per year, including
the staffing, Disposal, and Transportation of all acceptable Recyclable Materials delivered by residents as
requested by the City Contract Manager. The City and Contractor shall mutually agree on the location for
the event(s). If not paid directly by City, Contractor shall be entitled to recover the agreed cost on a pass-
through basis as an “other adjustment” in the next annual Rate adjustment. Contractor shall procure all
necessary permits for the events and shall handle all Recyclable Materials received in a manner that will
ensure the maximum amount practicable will be Recycled, Composted, or otherwise Diverted from the
landfill.
A. Shredding. Contractor shall accept at least three (3) 12” x 12” x 16” boxes (or equivalent volume)
per household of sensitive documents for destruction and shredding on site at the event.
Contractor shall provide, or contract with another firm to provide, a modern, high-volume mobile
shredder for this service.
B. Accepted Recyclable Materials. Contractor shall accept from residents of the City, and keep
separate for Recycling, the following materials:
EXHIBIT B4
CITY SERVICES
December 3, 2020 Page B4-2 City of Cupertino/Recology Franchise Exhibit B4
1. E-waste, such as computer monitors, TVs, computers, VCRs, and other computer related
electronics;
2. U-Waste, such as compact fluorescent bulbs, fluorescent tube bulbs, batteries, and mercury
thermometers;
3. Clean (unpainted and untreated) dimensional lumber;
4. Scrap metal items that do not exceed forty (40) pounds in weight and are not more than three
(3) feet long in any dimension;
5. White goods, such as washers, dryers, water heaters, refrigerators, ranges, and dishwashers
that do not contain Freon;
6. Up to one covered pickup truck full of Residential C&D per household;
7. Up to thirty (30) gallons per household of concrete, asphalt, rock, and dirt;
8. Usable functioning appliances, furniture, housewares, or toys (to be donated to a non-profit
service organization);
9. Usable textiles (to be donated to a non-profit service organization); and,
10. All other Recyclable Materials.
C. Accepted Compostable Materials. Contractor shall accept from residents of the City, and keep
separate for Composting, the following materials:
1. Unpainted and untreated wood; and,
2. Yard Trimmings.
D. Non-Acceptable Materials. Contractor shall not be required to accept the following materials
during City-Wide Recycling events:
1. Tree branches which are more than six (6) inches in diameter;
2. More than thirty (30) gallons per household of concrete, asphalt, rock, and dirt;
3. More than one (1) pickup truck full of Residential C&D per household;
4. Tires;
5. Hazardous materials including Used Motor Oil and Filters; and,
6. Any other materials not included in the list above.
EXHIBIT B4
CITY SERVICES
December 3, 2020 Page B4-3 City of Cupertino/Recology Franchise Exhibit B4
4. COATS FOR KIDS
For Residential Customers, Contractor shall run its “Coats for Kids” program in the fall or winter of every
year as directed by the City. Contractor shall promote this program in accordance with Exhibit C.
Contractor shall launder the coats and donate them to local non-profit organizations to keep children and
adults in need warm through the winter months. Contractor shall submit to the City a summary report of
the “Coats for Kids” program in the annual report in accordance with Exhibit D.
5. PROVISION OF COMPOST AND MULCH PRODUCT
A. Bulk Compost. Contractor shall make available to the City bulk Compost produced from Organic
Materials Collected from Single-Family Customers (among other sources) at an Approved
Processing Facility for use by residents and for use in City parks and facilities. Contractor shall
provide one thousand (1,000) cubic yards per Agreement year at no additional cost to the City or
Customers, and an additional one thousand (1,000) cubic yards per Agreement year at a twenty-
five percent (25%) discount off market price. The City will notify Contractor as to the City’s needs
for delivery of finished Compost throughout the Agreement year. Contractor shall deliver
Compost within five (5) Business Days of a request of the City to City facilities, parks, and/or other
City-approved locations within City limits and Contractor shall be entitled to recover it on a pass-
through basis as an “other adjustment” in the next annual Rate adjustment. If the City does not
take delivery of Compost made available by Contractor within thirty (30) calendar days of the end
of the Agreement year, Contractor’s obligation to provide Compost for said Agreement year shall
be deemed to be satisfied. Any of the bulk Compost allotment that is not requested by the City
during the Agreement year shall not carry over into the next Agreement year. In accordance with
Exhibit D, Contractor shall provide the City with Compost lab results. The Compost will be
“Certified Compost” under the U.S. Composting Council’s Seal of Testing Assurance (STA)
program.
B. Bulk Mulch. If the Approved Organic Materials Processing Facility produces Mulch that meets the
requirements of 14 CCR Section 18993.1(f)(4), then City may opt to receive Mulch instead of
Compost (or a combination of Mulch and Compost), subject to the same volume and pricing limits
stated in this Exhibit B4, Section 5.A above. The Mulch shall be for use in City parks and facilities.
The City will notify Contractor as to the City’s needs for delivery of finished Mulch throughout the
Agreement year. Contractor shall deliver Mulch within five (5) Business Days upon request of the
City to any accessible location within City limits, and the cost of delivery shall either be paid by
City, or Contractor shall be entitled to recover it on a pass-t hrough basis as an “other adjustment”
in the next annual Rate adjustment. If the City does not take delivery of Mulch made available by
Contractor within thirty (30) calendar days of the end of the Agreement year, Contractor’s
obligation to provide Mulch for said Agreement year shall be deemed to be satisfied. Any of the
bulk Mulch allotment that is not requested by the City during the Agreement year shall not carry
over into the next Agreement year.
C. SB 1383 Procurement. Contractor agrees that all Compost or Mulch provided through this
Agreement shall comply with the requirements of SB 1383, 14 CCR Section 18993.1(f)(1) (as to
Compost) and 18993.1(f)(4) (as to Mulch).
In the event that the City does not use its free allocation of bulk Compost under Section A,
Contractor shall act as the City’s broker for the remaining material and make reasonable
commercial efforts to either: (a) sell that Compost (or an equivalent volume of Mulch) to other
EXHIBIT B4
CITY SERVICES
December 3, 2020 Page B4-4 City of Cupertino/Recology Franchise Exhibit B4
potential users on the City’s behalf (in which case Contractor may retain the proceeds); or,
(b) donate that Compost (or an equivalent volume of Mulch) to a non-profit user selected by
Contractor, or to any other recipient mutually-agreed with City.
6. NEWS MEDIA RELATIONS.
Contractor shall notify the City Contract Manager by e-mail of all requests for news media interviews
related to the Collection services program within twenty-four (24) hours of Contractor’s receipt of the
request. Before responding to any inquiries involving controversial issues or any issues likely to affect
participation or Customer perception of services, Contractor will discuss Contractor’s proposed response
with the City Contract Manager.
Copies of draft news releases or proposed trade journal articles related to the provision of Collection
services under this Agreement shall be submitted to the City for prior review and approval at least five (5)
Business Days in advance of provision to such Persons, except where Contractor is required by any law or
regulation to submit materials to any regulatory agency in a shorter period of time, in which case
Contractor shall submit such materials to the City simultaneously with Contractor’s submittal to such
regulatory agency.
Copies of articles resulting from media interviews or news releases shall be provided to the City within
five (5) Business Days after publication.
7. WASTE GENERATION, CHARACTERIZATION, AND PILOT STUDIES.
Contractor acknowledges that the City, CalRecycle, or other governmental agencies may wish to perform
generation and characterization studies periodically with respect to materials covered under this
Agreement. Contractor agrees to cooperate with the City and its agents that may perform studies and
data collection exercises, as needed, to determine weights, volumes, and composition of materials
generated, Disposed, Diverted or otherwise Processed. Contractor shall assist the City and its agents in
such efforts at no additional compensation, provided such assistance does not interfere with Contractor’s
operations and is at no or de minimis cost to Contractor. Such assistance shall include allowing the City
and its agents to perform generation and characterization studies at the Approved Transfer Facility at no
additional compensation, at mutually agreed times. Contractor shall work with the City’s agents to provide
a waste characterization plan for the City’s approval that details methods, proposes material types to
study, dates and times of studies, and number of sites to study in each sector.
If the City requires Contractor to directly participate in the study by conducting, managing, analyzing,
and/or providing a report of the results, Contractor and the City shall mutually agree on the scope of
services to be provided by Contractor and the amount of compensation, if any, that the City will pay to
Contractor for such participation. In any event, Contractor shall permit and in no way interfere with the
Collection and handling of the subject materials by City or other City-approved Persons for such purposes.
Contractor acknowledges that the County, in coordination with the City, is required by SB 1383 to conduct
Organic Waste and Edible Food capacity planning studies. Contractor shall provide information to the City
as reasonably requested by City for the City’s participation in such capacity planning studies. This
information may include, but is not limited to, providing information regarding existing and potential new
or expanded capacity in Contractor’s operations for the Collection, Transport, or Processing of Recyclable
Materials and Organic Materials; and any other information reasonably requested by the City or County
EXHIBIT B4
CITY SERVICES
December 3, 2020 Page B4-5 City of Cupertino/Recology Franchise Exhibit B4
for purposes of the study. Contractor shall respond to any request for information from the City within
thirty (30) days, unless another timeframe is otherwise specified or authorized by the City.
Contractor acknowledges that the City may wish to conduct and/or participate in pilot studies related to
the Customers and materials that are the subject of this Agreement. If the City requires Contractor to
participate in any such a pilot study, Contractor and the City shall mutually agree on the scope of services
to be provided by Contractor and the amount of compensation, if any, that the City will pay to Contractor
for such participation. In any event, Contractor shall permit and in no way interfere with the Collection
and handling of the subject materials by City or other City-approved Persons for such purposes.
This page intentionally left blank
EXHIBIT B5:
CITY FACILITY SERVICE LEVELS, LOCATIONS, AND
SPECIAL EVENTS
EXHIBIT B5
CITY FACILITY SERVICE LEVELS, LOCATIONS, AND SPECIAL EVENTS
December 3, 2020 Page B5-1 City of Cupertino/Recology Franchise Exhibit B5
Contractor shall Collect Recyclable Materials, Organic Materials, and Solid Waste, from City facilities in the same manner as those services are
provided to Commercial Customers, and shall provide designated personnel in accordance with Section 5.7.D of this Agreement. Contractor shall
provide service to all existing City facilities identified in this Exhibit as well as any future City facilities established after the Commencement Date.
Contractor shall provide these services at no additional cost to the City, subject to Section 1 of Exhibit B4.
FACILITY
NAME ADDRESS
SERVICE LEVEL/
FREQUENCY
TRASH
SERVICE LEVEL/
FREQUENCY
RECYCLING
SERVICE LEVEL/
FREQUENCY
GREEN WASTE
DROP BOX
ON-CALL
City Hall and
Community Hall
10300 Torre Ave. 1-3yd
3x/week
1-4yd
1x/week
1-3yd
1x/wee
Blackberry Farm 21975 San Fernando
Ave
4-3yd
2x/week
3- 4yd
1x/week
1-4yd On-Call
15-96Gal Cart/1x/week
Library 10400 Torre Ave. 1-3yd
3x/week
1-4yd
5x/week
1-3yd
1x/week
Quinlan Community
Center
10185 Stelling Rd.
North
1x 4yd
3x/week
1-4yd
3x/week
1-4yd
2x/week
Senior Center 21251 Steven Creek
Blvd
1-3yd
3x/week
1-3yd,
1x/week
1-2yd
2x/week
Sports Center 21111 Stevens Creek
Blvd.
1-1.5yd, 3x/week 1-1.5yd
3x/week
1-1.5yd
1x/week
All City parks 2-40 yds for leaf
season
Public Works Service
Center
10555 Mary Ave 1-3yd
3x/week
2- 4yd
1x/week
1-1.5yd,
1x/week
2-8yd,1-26yd,1-40yd,
2-16yd
Traffic Operations
Center
10981 Franco Ct. 2-1.5yd, 1x/week None currently None currently
Stocklmeir Property 22120 Stevens Creek
Blvd
1-96Gal Cart
/x/week
1-64Gal Cart
1/x/week
1x 96Gal Cart
1/x/week
City of Cupertino 10301 Byrne Ave 1- 32Gal Cart
1/x/week
1-64Gal Cart
1x/week
1-96Gal Cart
1/x/week
McClellan Ranch
Preserve and
22221 McClellan Rd. 2-64 gallon
1x/week
1-16yd,
1-20yd-city owned
EXHIBIT B5
CITY FACILITY SERVICE LEVELS, LOCATIONS, AND SPECIAL EVENTS
December 3, 2020 Page B5-2 City of Cupertino/Recology Franchise Exhibit B5
FACILITY
NAME ADDRESS
SERVICE LEVEL/
FREQUENCY
TRASH
SERVICE LEVEL/
FREQUENCY
RECYCLING
SERVICE LEVEL/
FREQUENCY
GREEN WASTE
DROP BOX
ON-CALL
Environmental
Education Center
Monta Vista
Recreation Center
22601 Voss Ave. 1- 6yd, 1x/week 1-4yd
1x/week
None currently
Compost Site 1200 Stevens
Canyon Rd.
1- 3yd 1x/week
seasonally end of
March – mid Nov
1 -3yd,
1x/week
None currently
In addition to regular scheduled Collection services, Contractor shall provide, upon request, two hundred sixty (260) temporary Drop Box Collection
services per year to all City facilities (including but not limited to those listed above) at no additional cost to the City. Contractor shall deliver Drop
Boxes within one (1) Working Day of the City’s request. Contractor shall Collect, empty, and return Drop Boxes within one (1) Working Day of the
City’s request. Contactor shall remove and not return Drop-Boxes within one (1) Working Days of the City’s request. Contractor shall deliver Source
Separated Yard Trimmings Collected from City facilities, parks, and clean-up operations in such Drop Boxes to the Approved Organic Materials
Processing Facility.
Contractor shall provide special event services pursuant to Section 4.6 of the Agreement. Listed below are the current and planned City facilities
and special events to receive Collection services. Contractor acknowledges that the list of special events is subject to change per City direction but
will not exceed the annual number of special events provided in Section 4.6.
City of Cupertino Anticipated Special Events*
Event Name Estimated
Annual Date
Location Container Size /
Type
Container Number Other Services/ Specifications
National River
Clean Up
May &
September
Creekside
Park
96 gallon 3-MSW,3-RYC and
1-ORG
None
4th of July July 3rd Creekside
Park
FEL 1-6yd MSW, 1-6yd
RYC and 1-3yd
ORG
Addition Clear Stream Trios as
needed
Earth
Day/Arbor
Day
April City Hall FEL 1-3yd MSW,1-4yd
RYC and 1-3yd
ORG
Use existing FEL bins on site.
May add additional bins if
needed along with Clear Stream
Trios
EXHIBIT C:
PUBLIC EDUCATION AND OUTREACH
REQUIREMENTS
EXHIBIT C
PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-1 City of Cupertino/Recology Franchise Exhibit C
1. General Administration
The City places importance on effective public outreach and education in helping residents and businesses
fully understand options for and benefits of source reduction, Reuse, Recycling, and Composting. General
provisions for public education and outreach are as follows:
A. Prior to the Commencement Date and by November 1 of each following year during the Term of
this Agreement, Contractor shall develop and submit an annual public education plan to promote
the programs designed by the City and performed by Contractor under this Agreement. Each
public education plan shall specify the target audience for services provided, include upcoming
promotions for ongoing and known special events, identify program objectives, individual tasks,
public education materials to be distributed, opportunities for expanded partnerships, a timeline
for implementation, and an itemized description of how Contractor’s annual public education
budget (described in subsection (F) of this Exhibit C-1) will be spent. The City Contract Manager
shall be permitted to provide input on each annual public education plan, and the plan shall not
be finalized or implemented without approval of the City Contract Manager, not to be
unreasonably withheld or delayed. Each plan’s implementation success shall be measured
according to the deadlines identified and products distributed. Contractor shall meet with the City
Contract Manager to present and discuss the plan, review the prior year’s activities (including
sponsorships and services provided to City-sponsored events) and determine whether community
activities and the provision of services to the City reflect the needs of City staff and the City
Council. The City Contract Manager shall be allowed up to thirty (30) calendar days after receipt
to review the plan and request reasonable modifications. The City Contract Manager may request,
and Contractor shall not unreasonably deny, reasonable modifications to be completed prior to
approving the plan. Contractor shall have up to fifteen (15) Business Days to revise the plan in
response to any requested changes by the City Contract Manager. Any further delays may result
in Liquidated Damages as identified in Exhibit F.
B. Upon request from the City Contract Manager, City Contract Manager and Contractor’s Contract
Manager shall meet up to one (1) time per month to discuss services, outreach, and educational
campaigns and request changes or adaptations to the annual public education plan. The City will
be responsible, in its sole discretion and subject to budgetary constraints, for preparing all public
education materials contemplated by this Exhibit C, at City’s cost, and shall request that materials
be reviewed by Contractor prior to production. If requested, Contractor shall review and
comment on the materials ten (10) Business Days of request from the City.
C. All City facilities shall receive any and all public education and outreach materials and services
provided to the Commercial sector. Contractor shall provide all printed public education materials
to City offices and facilities to have available for the public that visits those facilities and shall
replenish the materials as requested by the City Contract Manager.
D. Bill inserts shall be designed and produced by the City; and Contractor shall be responsible for
printing and distributing the billing inserts to all Customers. Contractor shall provide electronic
bill inserts (or separate email attachments) to Customers who are billed electronically, and paper
bill inserts to Customers who receive paper bills. For Customers receiving electronic bills,
Contractor agrees to distribute brochures, newsletters, or other information developed by the
EXHIBIT C
PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-2 City of Cupertino/Recology Franchise Exhibit C
City as attachments to Customer invoices. Electronic bill inserts/attachments must be readily
available for the Customer to view upon receipt of the invoice (attachments shall not be provided
as links). Upon City request for billing inserts, Contractor shall comply with such request during
its next billing cycle for the targeted Customer group, if specified. Contractor shall perform this
service with no additional requirement for compensation.
E. Contractor shall develop a website specific to its operations in the City, with a section specific to
City programs and Customers, that will be used to post educational materials for download,
highlight program successes, and provide Diversion statistics. Contractor’s City-specific website
shall also include links to relevant web pages of the City’s website where further information can
be found.
F. Notwithstanding any other provision, Contractor shall only be required to pay forty four thousand
two hundred ninety-three dollars ($44,293) per Agreement year in out-of-pocket printing,
shipping, mailing, and signage costs for City-approved public education and outreach materials,
increased annually by CPI-U. City or Contractor shall be entitled to recover above reimbursement
amount on a pass-through basis as an “other adjustment” in the next annual Rate adjustment.
2. Public Education and Outreach Team
To best achieve the highest possible level of public education and awareness, Contractor shall employ at
least one (1) full-time Waste Zero Specialist staff member to coordinate and implement all public
education and outreach activities required by this Agreement. Contractor’s Waste Zero Specialist shall
spend one hundred percent (100%) of their time implementing public education, technical support, and
outreach activities required by this Agreement, as provided in Section 4.7.
A. Waste Zero Specialist.
Contractor’s Waste Zero Specialist shall, at a minimum, perform the following tasks:
1. Meet no less than monthly with the City Contract Manager upon the request of the City
Contract Manager and be readily available to discuss issues related to providing service as
described in the Agreement;
2. Work to coordinate City program and educational activities with Contractor activities;
3. Increase efforts to promote Recycling in the community and particularly in local schools by
visiting each school at minimum two (2) times per school year, recognizing that waste
generated by schools in the City affects the City’s Diversion;
4. Upon City request, organize City staff ride-alongs with Contractor’s Collection drivers;
5. Prepare proposals and presentations to City entities;
6. Participate and represent Contractor in community activities;
7. Oversee Customer satisfaction of all program services, as described in Exhibit B to the
Agreement;
EXHIBIT C
PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-3 City of Cupertino/Recology Franchise Exhibit C
8. Coordinate and produce the annual education and outreach plan required by Section 1 of this
Exhibit C to the Agreement;
9. Coordinate implementation of the annual public education plan;
10. Perform annual visits to confirm adequate service and proper sorting as required by Recycling
and Organic Materials Processing laws and regulations for every Customer, other than Single-
Family Customers, by conducting “Diversion opportunity assessments” of Customer locations
and facilities;
11. Manage follow-up Diversion opportunity assessments for businesses to conduct a more
comprehensive investigation and educational process after the initial review;
12. Provide all Customers with appropriate educational information necessary to make informed,
environmentally-forward decisions relative to waste reduction, Reuse, and Diversion
activities.
13. Maximize the opportunity for initial and sustained program success by seeking to identify a
"champion" (ideally a senior manager) at each Commercial and Multi-Family Premises who
will serve as a primary contact and advocate for Diversion programs within the Customer’s
organization;
14. Assist in planning service needs for special events and Large Venues with a focus on reducing
the Disposal to landfill of materials resulting from such events or venues; and,
15. Assist in creating and distributing reports as required under this Agreement and/or requested
by the City Contract Manager, as described in Article 6 and Exhibit D.
16. Educate and inform about SB 1383 and food rescue/donation.
17. Attend Santa Clara County RWRC Technical Advisory Committee meetings monthly and
California Resource Recovery Association annual conference.
3. Curbside Supplemental Payments
Contractor shall apply for the State’s Curbside Supplemental Payment program in accordance with Section
7.6.
4. Sector-Specific Activities
The following tables present the public education and outreach activities to be performed by Contractor
each Rate Period as minimum requirements under this Agreement. Each Customer Type faces unique
Discarded Materials management opportunities and challenges; therefore, Contractor shall distribute
targeted, sector-specific educational materials and perform outreach activities as described for each
Customer Type.
EXHIBIT C
PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-4 City of Cupertino/Recology Franchise Exhibit C
Public Education and Outreach | All Sectors
All printed materials also to be posted to the Contractor’s website.
The following tables present examples of general public education and outreach materials that Contractor shall produce for the benefit of all
Customer types that receive Collection service from Contractor.
Activity Description Distribution/Frequency
Truck-Side Advertising Implement a City-wide truck-side advertising campaign to educate the
public about Contractor’s programs under this Agreement. Campaign
content and messaging shall be created by the City. Contractor shall
produce and install truck-side signage for each side of each vehicle it
operates in performing services under this Agreement.
Quarterly.
SB 1383 Mandatory Recyclable
Materials and Organic Materials
Outreach
Commencing January 1, 2022, distribute City-produced outreach
materials that include, at a minimum, the following information:
1. Information on the Generator’s requirements to properly Source
Separate Recyclable Materials, Organic Materials, and Solid Waste
and place such materials in appropriate Containers pursuant to this
Agreement, SB 1383, and all other Applicable Law.
2. Information on methods for the prevention of Source Separated
Recyclable Materials and Source Separated Organic Materials
generation; managing Source Separated Organic Materials on
Generator’s Premises through Composting or other landfill Disposal
reduction activities allowed under 14 CCR Sections 18983.1 and
18983.2; sending Source Separated Organic Materials to Community
Composting operations; and any other local requirements regarding
Discarded Materials.
3. Information regarding the methane reduction benefits of reducing
the Disposal of Source Separated Organic Materials, and the
method(s) that Contractor uses to recover Source Separated Orga nic
Materials.
At least annually.
EXHIBIT C
PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-5 City of Cupertino/Recology Franchise Exhibit C
Activity Description Distribution/Frequency
4. Information regarding how to recover Source-Separated Recyclable
Materials and Source-Separated Organic Materials, and information
related to recovering Source Separated Yard Trimmings from Multi-
Family and Commercial Generators
5. Information related to the public health and safety and
environmental impacts associated with the Disposal of Source
Separated Organic Materials.
6. Information regarding the City’s Edible Food recovery program.
7. Information regarding Self-Hauling requirements, if applicable.
8. Any other Federal, State, or local requirements to properly separate
Discarded Materials or other necessary actions by Generators,
including applicable requirements of the Municipal Code, AB 341, AB
1826, and SB 1383.
EXHIBIT C
PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-6 City of Cupertino/Recology Franchise Exhibit C
Public Education and Outreach | Single-Family & Townhouse Education and Outreach Activities
All printed materials also to be posted to the Contractor’s website.
Activity Description Distribution/Frequency
Environmental Services Guide Distribute a City-designed “how-to” guide on (including but not limited to)
proper Recycling, Organics disposal, handling and Disposal of Household
Hazardous Waste, E-Waste, and U-Waste directly to Single-Family residents. This
guide shall include information on Collection methodologies, set-out
instructions, set-out schedule, contact information, and acceptability and
necessary preparation of materials for all Single-Family programs described in
Exhibit B1. Contractor may arrange for distribution to each Dwelling Unit a flyer,
door hanger, or other public education piece by coordinating with the Owner or
property manager of the Premises.
Annually to each Single-Family
and Townhouse Customer,
and thereafter to all new
Customers.
Move-In Kits Distribute Move-in Kits for new residents. As needed.
Neighborhood Group & HOA
Visits
Visit homeowner associations and other neighborhood groups and associations
to promote and explain the Recycling programs included in this Agreement.
At City Contract Manager or
Customer request.
Quarterly Bill Insert Produce and Distribute a City-designed quarterly bill inserts that creatively
informs Residential Customers about such topics as availability of Bulky Item
pick-ups, home Composting, proper handling of Household Hazardous Waste, E-
Waste, U-Waste, Coats for Kids, and other environmental conservation topics,
statistics, trends, and facts about programs performed under this Agreement
(e.g., material Collected, Tonnage, year over year increase/decrease, markets for
material Collected, what each material is Recycled into, and the importance of
buying Recycled). Contractor’s annual public education plan shall define a theme
for each quarterly bill insert.
One (1) time per quarter
included in each mailed
Customer bill and
downloadable from electronic
Customer bills.
Corrective Action Notices Produce and distribute a Single-Family Customer oriented Non-Collection Notice
and Courtesy Notice for use in instances where the Customer inc ludes Prohibited
Container Contaminants in a Container or fails to properly prepare or set-out
Containers.
As needed.
EXHIBIT C
PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-7 City of Cupertino/Recology Franchise Exhibit C
Activity Description Distribution/Frequency
Seasonal Program Notifications Provide written notification to all Single-Family Customers advertising holiday
tree Collections pursuant to Exhibit B1, Section 6, and any other seasonal or
periodic program(s). The notification shall inform Customers of the schedule,
acceptable materials and Prohibited Container Contaminants, and set-out
requirements for the program.
At least fourteen (14) calendar
days prior to event via direct
mail.
Website Contractor shall prepare a “Single-Family Customer” sectionof its website where
it will present Customers with “how-to” information for participating in
Contractor-provided programs, including proper Container set-outs, and provide
Single-Family Customers with links to click on for additional resources. All other
Single-Family educational materials specified in this Section shall be posted on
this section of Contractor’s website in PDF and/or video format. The website
shall also publish the current Rates charged to Single-Family Customers within
the City.
At least thirty (30) calendar
days prior to Commencement
Date.
Updated no less than
quarterly.
EXHIBIT C
PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-8 City of Cupertino/Recology Franchise Exhibit C
Public Education and Outreach | Multi-Family Education and Outreach Activities
All printed materials also to be posted to the Company’s website.
Description Purpose Distribution/Frequency
Environmental Services Guide Distribute a City-designed “how-to” guide on (including but not limited
to) proper Recycling, Organics disposal, handling and Disposal of
Household Hazardous Waste, E-Waste, and U-Waste directly to Multi-
Family Customers. This guide shall include information on Collection
methodologies, set-out instructions, pick-up schedule, contact
information, and acceptability and necessary preparation of materials
for all Single-Family programs described in Exhibit B2. Contractor may
arrange for distribution to each Dwelling Unit a flyer, door hanger, or
other public education piece by coordinating with the Owner or
property manager of the Premises.
Annually to each Multi-Family
Dwelling Unit, and thereafter
to all new Customers.
Technical Assistance: Diversion
Opportunity Assessments
Visit in person and offer Diversion opportunity assessments at least one
(1) time annually to each and every Multi-Family Customer to meet with
the property manager or Owner of Multi-Family Premises to promote
Recyclable Materials and Organic Materials Collection and replenish
Move-in Kits as needed by each Multi-Family Premises.
Additionally, upon City or Customer request, Contractor shall perform
complete walk-throughs of each facility/complex and discuss the
internal and external layout with property manager; identify areas of
generation, Collection, noting areas for improved infrastructure,
placement, or educational materials. Contractor shall also identify
major components of the waste stream by location and identify special
wastes or Source-Separated materials potential. Contractor shall then
make recommendations for waste reduction, contamination
prevention, and Service Level or frequency modification. Finally,
Contractor shall coordinate with Customer service and operations to
implement Service Level changes, as needed.
Offer in-person meetings to
each and every Multi-Family
Customer conducted one (1)
time per year, plus follow-up
meetings with individual
Customers, as needed or
requested.
Move-In Kits Produce and Distribute Move-in Kits for property managers and Owners
of Multi-Family Premises to provide to new Occupants.
Distributed during technical
assistance Diversion
opportunity assessments.
EXHIBIT C
PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-9 City of Cupertino/Recology Franchise Exhibit C
Description Purpose Distribution/Frequency
Workshops Offer and respond to requests for on-site or online meetings and
workshops. Contractor shall conduct workshops for Customers (when
requested) that will show property managers and residents, in a hands-
on interactive format, how to use the Recyclable Materials and Organic
Materials program and will provide resources for additional information
and support.
At Customer’s request.
Holiday Tree Collection
Notification
Produce and distribute a City-designed written notification to each
Multi-Family property manager/Owner advertising the availability of
holiday tree Collection services. The notification shall inform managers
of the schedule, accepted and prohibited materials, Collection method
options, and set-out requirements for the program. The notification
shall include Contractor contact information for Multi-Family
Customers to contact to discuss schedule and designated Collection
location. The format and content of the notification shall be approved
by the City Contract Manager.
At least fourteen (14)
calendar days prior to event
via direct mail, e-mail, or in-
person.
Website Contractor shall prepare a “Multi-Family Customer” section of its
website where it will present “how-to” information for participating in
Contractor-provided programs including proper Container set-outs, and
provide Multi-Family Customers with links to click on for additional
resources. All other Multi-Family educational materials specified in this
Exhibit shall be posted on this section of Contractor’s website in PDF
and/or video format. The website shall also publish the current Rates
charged to Multi-Family Customers within the City. The website shall
also provide property managers of Multi-Family Premises with an
opportunity to request “Diversion opportunity assessments”, additional
Move-in Kits, workshops, or additional education materials to provide
to Occupants.
At least thirty (30) calendar
days prior to Commencement
Date.
Updated no less than
quarterly.
EXHIBIT C
PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-10 City of Cupertino/Recology Franchise Exhibit C
Description Purpose Distribution/Frequency
SB 1383 Educational Materials
for Employees/ Occupants
Commencing January 1, 2022, Contractor shall provide Multi-Family
property managers/Owners with City-produced public education
materials, required by 14 CCR Section 18984.10, for their distribution to
all employees, Contractors, Occupants, and Customers of the property
or business. The public education materials shall include, at a minimum,
information about Organic Materials recovery requirements and proper
sorting of Discarded Materials. Multi-Family property
managers/Owners may request these materials more frequently if
needed to comply with the SB 1383 requirement to provide information
to new Occupants before or within fourteen (14) days of occupancy. In
this case, the Multi-Family property manager/owner may request
delivery of materials by contacting Contractor’s Customer service
department no later than two (2) weeks in advance of the date that the
materials are needed.
One (1) time annually; or
more frequently upon
Customer request.
EXHIBIT C
PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-11 City of Cupertino/Recology Franchise Exhibit C
Public Education and Outreach | Commercial Education and Outreach Activities
All printed materials also to be posted to the Company’s website.
Description Purpose Distribution/Frequency
Environmental Services Guide Produce and Distribute a City-designed “how-to” guide on (including but not
limited to) proper Recycling, Organics disposal, handling and Disposal of
Hazardous Waste, E-Waste, and U-Waste directly to Commercial Customers. This
guide shall include information on Collection methodologies, set-out
instructions, set-out schedule, contact information, and acceptability and
necessary preparation of materials for all Commercial programs described in
Exhibit B3.
By direct mail annually to each
Commercial Customer, and
thereafter to all new Customers.
“How-to” Flyer: Recyclable
Materials
Prepare and distribute a City-designed “how-to” brochure explaining the
Recyclable Materials Collection programs for each general business type
(restaurants, office/Commercial buildings, strip malls, and large Commercial
businesses). Include waste reduction messaging and encourage reusable
foodware.
One (1) time at beginning of the
Agreement (20-30 days prior to
contract start date) via direct mail.
Thereafter, distributed during
Diversion opportunity
assessments.
“How-to” Flyer: Organic
Materials
Prepare and distribute a City-designed flyer describing the Organic Materials
Collection services available and how to prepare Organic Materials for Collection
for each general business type (restaurants, office/Commercial buildings, strip
malls, and large Commercial businesses). Include information on food donation
laws (e.g., Good Samaritan Law) and organizations that accept donations if
known.
One (1) time at beginning of the
Agreement (20-30 days prior to
contract start date) via direct mail.
Thereafter, distributed during
Diversion opportunity
assessments.
EXHIBIT C
PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-12 City of Cupertino/Recology Franchise Exhibit C
Description Purpose Distribution/Frequency
Technical Assistance: Diversion
Opportunity Waste
Assessments
Visit in person and offer Diversion opportunity assessments at least one (1) time
annually to each and every Commercial Customer to promote Recyclable
Materials and Organic Materials Collection and replenish Recycling guides and
Recyclable Materials and Organic Materials posters as needed by each
Customer. Provide inside Containers (e.g., 32 gallon “slim jims”) with labels upon
request to assist with Diversion (to be provided to Customers at cost).
Additionally, Contractor shall perform complete walk-throughs of each
facility/complex and discuss the internal and external layout with property
manager; identify areas of generation, Collection, noting areas for improved
infrastructure, placement, or educational materials. Contractor shall also
identify major components of the waste stream by location and identify special
wastes or sourced separated materials potentials. Contractor shall then make
recommendations for waste reduction, contamination prevention, and Service
Level or frequency modification. Finally, Contractor shall coordinate with
Customer service and operations to implement Service Level changes, as
needed.
Offer one (1) time annually during
in-person meetings with
Commercial Customer, plus
follow-up meetings with individual
Customers, as required or
requested.
Recyclable Materials and
Organic Materials Posters
Produce and Distribute City-produced (during Diversion opportunity
assessments) laminated Recyclable Materials and Organic Materials posters that
provide graphic illustrations of acceptable materials and Prohibited Container
Contaminants within each program.
Distributed during Diversion
opportunity assessments.
Quarterly Bill Inserts Produce and distribute City-designed quarterly bill inserts that creatively inform
Commercial Customers about such topics as: cost savings available from source
reduction, Reuse, and Recycling; tips for overcoming common operational
challenges businesses have with Recyclable Materials and Organic Materials
programs; the environmental benefits of buying Recycled-content products and
statistics, trends, and facts about programs performed under this Agreement
(e.g., Collected, Tonnage, year over year increase/decrease, markets for material
Collected, what each material is Recycled into) as appropriate. Contractor’s
annual public education plan shall define a theme for each quarterly insert.
One (1) time per quarter via direct
mail to each Commercial
Customer in the City.
EXHIBIT C
PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-13 City of Cupertino/Recology Franchise Exhibit C
Description Purpose Distribution/Frequency
Program Announcements On each bill, Contractor shall include a brief statement to Commercial Customers
providing service-related announcements such as messages about new services,
the proper handling of Household Hazardous Waste, waste reduction, etc.
Included in Customer bill.
Corrective Action Notices Produce a Commercial and Multi-Family Customer oriented Non-Collection
Notice and Courtesy Notice for use in instances where the Customer includes
prohibited materials in a Container or fails to properly prepare or set-out
Containers.
As needed.
SB 1383 Educational Materials
for Employees/ Occupants
Commencing January 1, 2022, Contractor shall provide Commercial property
managers/Owners with City-produced public education materials, required by
CCR Section 18984.10, for their distribution to all employees, Contractors,
Occupants, and Customers of the property or business. The public education
materials shall include, at a minimum, information about Organic Waste
recovery requirements and proper sorting of Discarded Materials. Commercial
Customers may request these materials more frequently if needed to comply
with the SB 1383 requirement to provide information to new Occupants before
or within fourteen (14) days of occupancy. In this case, the Commercial property
manager/Owner may request delivery of materials by contacting Contractor’s
Customer service department no later than two (2) weeks in advance of the date
that the materials are needed.
One (1) time annually; or more
frequently upon Customer
request.
EXHIBIT C
PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-14 City of Cupertino/Recology Franchise Exhibit C
Description Purpose Distribution/Frequency
SB 1383 Commercial Edible
Food Generator Education
Commencing January 1, 2022, Contractor shall provide Customers that are
Commercial Edible Food Generators with City-produced educational materials
that contain the following:
1. Information about the City’s Edible Food Recovery program;
2. Information about the Commercial Edible Food Generator requirements
under 14 CCR, Division 7, Chapter 12, Article 10;
3. Information about Food Recovery Organizations and Food Recovery Services
operating within the City, and where a list of those Food Recovery
Organizations and Food Recovery Services can be found; and,
4. Information about actions that Commercial Edible Food Generators can take
to prevent the creation of Food Waste
One (1) time annually.
EXHIBIT C
PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-15 City of Cupertino/Recology Franchise Exhibit C
Public Education and Outreach | Schools
All printed materials also to be posted to the Company’s website as well as links to teacher resources.
Description Purpose Distribution/Frequency
Educational Materials Contractor shall produce and distribute educational materials designed
by the City that are geared towards younger audiences, such as
educational videos, activity books, and Recycling posters. Contractor
shall provide schools with copies of materials upon request for
classroom use.
As mutually agreed by City,
Contractor, and the school
district. Costs of this activity will
be treated as a pass-through
cost and added to annual Rate
adjustments.
Technical Assistance:
Diversion Opportunity
Assessment
Offer on-going technical assistance to schools subscribing to
Contractor’s services, including performing annual waste assessments,
communicating with waste brokers where such arrangements exist,
calculating Diversion rates, encouraging Reusables, and communicating
the results to the City to improve existing school Recyclable Materials
and Organic Materials programs. The annual waste assessments shall
include a specific assessment of Food Waste generated on the school
Premises; potential for source reduction and Diversion of Food Waste;
and identification of Food Recovery education and programs that may
be established, both internally (e.g., lunch share tables) and externally
(e.g., partnerships with local Food Recovery Organizations and Services).
Offered to schools Upon
Request.
Presentation Present curriculum to teach children how to Recycle, Compost, and
reduce waste at school and at home.
At City or organization request
EXHIBIT C
PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-16 City of Cupertino/Recology Franchise Exhibit C
Public Education and Outreach | Special Events
All printed materials also to be posted to the Company’s website as well as links to teacher resources.
Description Purpose Distribution/Frequency
Event Exhibit Contractor shall staff an exhibit booth and distribute
promotional and educational materials at special events.
Contractor shall provide visual displays, copies of educational
materials (including all guides, flyers, and brochures produced
for this Agreement), and Recyclable Materials and Organic
Materials Diversion education activities appropriate to a
variety of age groups. Display components will be
professionally designed and created and shall be scalable to
be appropriate for a variety of booth or display
configurations. Materials will include those pertaining to the
programs provided under this Agreement as well as general
information on “green” and/or sustainable behaviors.
All special events listed in Exhibit B7
of this Agreement.
Other events at Customer request.
EXHIBIT C
PUBLIC EDUCATION & OUTREACH PLAN
December 3, 2020 Page C-17 City of Cupertino/Recology Franchise Exhibit C
5. Food Recovery Online List
A. Food Recovery Organizations and Food Recovery Services Online List. On or before February 1,
2022, the City shall develop a list of Food Recovery Organizations and Food Recovery Services
operating within the City. Contractor will maintain the list on Contractor’s City-specific website,
and the City will update the list annually. The online list shall contain information as described in
this Exhibit C.
B. Education Materials for Food Recovery Organizations and Food Recovery Services Online List.
Minimum Content Requirements. The online list shall include, at a minimum, the following
information about each Food Recovery Organization and each Food Recovery Service located
within the City:
• Name and physical address;
• Contact information;
• Collection service area; and,
• An indication of types of Edible Food the Food Recovery Service or Food Recovery
Organization can accept for Food Recovery.
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EXHIBIT D:
REPORTING REQUIREMENTS
EXHIBIT D
REPORTING REQUIREMENTS
December 3, 2020 Page D-1 City of Cupertino/Recology Franchise Exhibit D
OVERVIEW
Records shall be maintained in forms and by methods that facilitate flexible use of data contained in them
to structure reports, as needed, in accordance with this Exhibit and Article 6. Reports are intended to
compile recorded data into useful forms of information that can be used to, among other things:
A. Determine and set Rates and evaluate the financial efficacy of operations.
B. Evaluate past and expected progress towards achieving Diversion goals and objectives.
C. Provide concise and comprehensive program information and metrics for use in fulfilling reporting
requirements under Applicable Law.
D. Determine needs for adjustment to programs.
E. Evaluate Customer service and Complaints.
F. Determine Customer compliance with AB 341, AB 1826, Cupertino Municipal Code 6.24
Mandatory Organic Recycling for Business Structures, SB 1383, and any subsequent State-
mandated or local Recycling requirements.
1. MONTHLY REPORT CONTENT
In accordance with Section 6.2, monthly reports shall be submitted by Contractor to the City and shall
include the following information as well as a year-to-date summary page that includes the data
submitted from the monthly report(s) submitted in the calendar year prior to the submittal of the current
monthly report. Contractor shall report the information included in the following subsections.
A. Tonnage Report
1. Tonnage delivered to each Approved Facility by Customer Type, subtotaling and clearly
identifying material type Tons, including Bulky Item materials, that are Diverted and those
that are Disposed. For unweighed material (e.g., those listed in item 2 below), or material
commingled with non-Cupertino material, a reasonable estimation/allocation methodology
may be used, provided that it has been approved in writing in advance by the City Contract
Manager.
2. Tons collected from regular accounts (as opposed to collected from C&D projects or special
cleanouts) shall be reported in the appropriate section of the report by Customer Type,
regardless of Container type (e.g., Drop Boxes or Compactors that are part of regularly
subscribed Commercial service will be shown in the Commercial section of the Tonnage
report).
3. Units of Used Motor Oil and Filters, E-Waste, U-Waste, and B ulky Items Collected by Customer
Type, categorized by On-Call Collection or City-wide Recycling events.
4. If and to the extent available from the Approved Recyclable Materials Processing Facility,
Recyclable Materials Tonnage marketed (by commodity and including average commodity
value for each) and Processing Residue Tonnage Disposed.
EXHIBIT D
REPORTING REQUIREMENTS
December 3, 2020 Page D-2 City of Cupertino/Recology Franchise Exhibit D
5. Copies of all statements and invoices for the month from each Approved Facility,
documenting materials accepted by Processing contamination tier, as applicable, provided,
however, that statements and invoices from the Approved Recyclable Materials Processing
Facility may be made available for inspection by the City, instead of copies being provided.
B. Diversion Report. Contractor shall report the Diversion level for each month and the cumulative
year-to-date Diversion level, where Diversion level shall be calculated as provided in Section
5.11.A.
1. Contractor shall report the monthly Diversion Rate by Customer Type and in aggregate for all
Customer Types under this Agreement.
C. Revenue Report. Provide a statement detailing Gross Receipts pursuant to this Agreement.
D. Customer Subscription and Collection Report
1. A summary of Customer subscription data, including the number of accounts; the number of
Customers subscribing to each Service Level listed separately by Customer Type and
Discarded Material type.
2. Number of On-Call Collection, Bulky Item Collection, and Bin-by-the-Day Collection events by
Customer Type.
3. Number of Customers subscribing to each City-approved service exemption by Customer
Type; including the total number of de minimis waivers, physical space constraint waivers,
and Collection frequency waivers granted in the month in accordance with Section 4.12,
including the Customer name and address for each waiver.
4. The number of waivers reviewed and number of reverification inspections performed by
Contractor pursuant to Section 4.12.2 of this Agreement in the month, if any, including a copy
of documentation for each waiver review and reverification inspection.
5. Number of Extra Bag Tags used by Customers.
6. Number of incidences of contamination that renders the Used Motor Oil and Filter or used
cooking oil unacceptable for Recycling or that requires Disposal as a Hazardous Waste.
E. Customer Service Report
1. Number of Customer calls listed separately by Complaints. For Complaints, list the number of
calls separately by category (e.g., missed pickups, scheduled cleanups, billing concerns,
damage claims, etc.). These Complaints and inquiries shall be documented and reported
separately from SB 1383 noncompliance Complaints or other regulatory noncompliance
Complaints.
2. Number of missed or incomplete Collections reported in total, and per one thousand (1,000)
Service Opportunities in the City, presented in a graph format.
EXHIBIT D
REPORTING REQUIREMENTS
December 3, 2020 Page D-3 City of Cupertino/Recology Franchise Exhibit D
3. Number of new service requests for each Customer Type and program.
4. Number of events of Discarded Materials being tagged with Non-Collection Notices
summarized by the reason for tagging (e.g., inclusion of non-Recyclable or non-Compostable
materials, improper set-out, Hazardous Waste, etc.), presented in a graph format.
5. Number of courtesy Collections summarized by the reason for leaving a Courtesy Notice (e.g.,
inclusion of non-Recyclable or non-Compostable materials, improper set-out, Hazardous
Waste, etc.), presented in a graph format.
6. Beginning on January 1, 2022, record of SB 1383 non-compliance Complaints received,
including the following information:
a. Total number of Complaints received and total number of Complaints investigated.
b. Copies of documentation recorded for each Complaint received, which shall at a
minimum include the following information: (i) The Complaint as received; (ii) The name
and contact information of the complainant, if the Complaint is not submitted
anonymously; (iii) The identity of the alleged violator, if known; (iv) A description of the
alleged violation; including location(s) and all other relevant facts known to the
complainant; (v) Any relevant photographic or documentary evidence submitted to
support the allegations in the Complaint; and, (vi) The identity of any witnesses, if
known.
c. Copies of all Complaint reports submitted to the City, pursuant to Section 4.10.2 of this
Agreement.
d. Documentation of any follow-up inspections and/or outreach, if any, conducted upon
City request pursuant to Section 4.10.2 of this Agreement, which shall include at a
minimum: (i) The date Contractor investigated the Complaint; (ii) documentation of the
findings of the investigation; and (iii) Any photographic or other evidence collected
during the investigation. This reporting element can be met by use of a City-approved
shared cloud-based documentation software such as Recyclist.
F. Education and Outreach
Items 1 through 4 below are required under SB 1383 and shall be included in the SB 1383 report
as described in this Exhibit D, Section 1.G.12 below.
1. A record of the date and to whom the information was disseminated or direct contact made,
in the form of a list that includes: the Generator’s name or account name, the type of
education or outreach received; the distribution date, and the method of distribution.
2. The number of Organic Waste Generators and Commercial Edible Food Generators that
received information and the type of education and outreach used.
EXHIBIT D
REPORTING REQUIREMENTS
December 3, 2020 Page D-4 City of Cupertino/Recology Franchise Exhibit D
3. For any mass distribution through mailings or bill inserts, provide a record of the date, a copy
of the information distributed, and the type and number of accounts that received the
information.
4. A copy of all electronic media, including the dates posted or sent of: social media posts, e-
mail communications, or other electronic messages.
5. Dates, times, and group or event names of any site visits, meetings, and events attended in
the month. This reporting element can be met by use of a City-approved shared cloud-based
documentation software such as Recyclist.
G. SB 1383 Related Reporting
Beginning January 1, 2022 and monthly thereafter, Contractor will report on the following items.
1. The number of Route reviews conducted, pursuant to Section 4.13 of this Agreement.
2. Description of Contractor’s process for determining the level of contamination during Route
reviews.
3. A record of each inspection and contamination incident, which shall include, at a minimum:
a. Name and address of the Customer;
b. The date the contaminated Container was observed;
c. The staff who conducted the inspection;
d. The total number of violations found and a description of what action was taken for
each;
e. Copies of all notices to Customers with Prohibited Container Contaminants; and,
f. Photographic documentation.
4. Documentation of the total number of Containers Disposed of due to observation of
Prohibited Container Contaminants;
5. Summary report of Courtesy Notices Non-Collection Notices, and/or contamination
Processing fee assessment notices issued. Each notice shall include the date of issuance,
Customer name, and service address.
6. A list of all Customers assessed contamination Processing fees, pursuant to Section 4.13 of
this Agreement, reported separately by Customer Type, and including the Customer name,
Customer address, and reason for the assessment of the contamination Processing fee; the
total number of instances contamination Processing fees were assessed in the month; and,
the total amount of fees collected in the month.
EXHIBIT D
REPORTING REQUIREMENTS
December 3, 2020 Page D-5 City of Cupertino/Recology Franchise Exhibit D
7. Assessment documentation and notes for Multi-Family and Commercial Customer
compliance reviews, including a list of Generators for which Contractor is unable to setup
Collection service, as noted in Section 4.8 C of this Agreement.
8. Results of the waste evaluation studies conducted pursuant to Section 4.13.2 of this
Agreement.
9. Summary of all loads of Recyclable Materials that were rejected at the Approved Recyclable
Materials Processing Facility or the Designated Recyclable Materials Processing Facility,
including: the date and time the load was rejected at the facility; Contractor’s truck number;
the reason for rejection; the materials in the load that required the load to be landfilled;
Contractor’s Disposal method; and, final destination for the rejected load.
10. Summary of all loads of Organic Materials that were rejected at the Approved Transfer Facility
and Approved Organic Materials Processing Facility, including: the date and time the load was
rejected at the Approved Facility; Contractor’s truck number; the reason for rejection; the
materials in the load that required the load to be landfilled; Contractor’s Disposal method;
and, final destination for the rejected load.
11. Any other information reasonably requested by the City or specified in contamination
monitoring provisions of this Agreement.
12. SB 1383-related public education and outreach materials described in this Exhibit D, Section
1.F.1 through 1.F.4 above.
H. C&D Collection. In accordance with Section 4.5 and Exhibit B3, Contractor shall separately
document the following information:
1. Tonnage of C&D Collected;
2. Tonnage of C&D delivered to the Designated Disposal Facility; and,
3. Calculation of the Diversion level, including C&D Transported to a City-Approved Facility other
than the Designated Disposal Facility (Tons of C&D Recycled, Reused, or salvaged divided by
Total Tons of C&D Collected).
Upon City direction, Contractor shall utilize a cloud-based C&D software system to track and
report such C&D data. Contractor shall provide each Customer with documentation necessary for
the Customer to meet the requirements of the City’s C&D ordinance.
I. Non-Conforming Carts Status. In accordance with Section 5.6, Contractor shall document the
status of exchanging Non-Conforming Carts.
2. QUARTERLY REPORT CONTENT
A. Tonnage Allocation. On a quarterly basis, Contractor shall report the Tonnage attributed to the
City that was taken to landfills other than the Designated Disposal Facility as Residual from
Organic Material screening or Processing at any Contractor facility. The report shall include
EXHIBIT D
REPORTING REQUIREMENTS
December 3, 2020 Page D-6 City of Cupertino/Recology Franchise Exhibit D
Contractor’s methodology, including how often it is reviewed and updated, for estimating what
percentage of the jurisdictionally commingled non-Compostable Tonnage that was landfilled is
attributable to the City and reported to CalRecycle through the Disposal Reporting System (DRS).
B. Claims. On a quarterly basis, Contactor shall submit to City all claims against Contractor specific
to the services provided under the Agreement, that have been filed, settled, or that are under
review.
3. BIANNUAL REPORT CONTENT
On April 1 and October 1 of each year of this Agreement, and at other times upon City request, Contractor
shall provide the City with copies of laboratory results on the quality of the Compost materials produced
from the Organic Materials Collected in the City in the prior three months, and on the Organic Materials
provided to the City as required in Exhibit B4, Section 5 of this Agreement.
4. ANNUAL REPORT CONTENT
The annual report shall be the final monthly report, including annual totals, summary pages, and a
compilation of any materials required by the monthly reports, plus the following additional information.
A. Summary Assessment. Provide a summary assessment of the programs performed under this
Agreement from Contractor's perspective relative to the financial and physical status of the
program. The physical status assessment shall reflect how well the program is operating in terms
of efficiency, economy, and effectiveness in meeting all the goals and objectives of this
Agreement, particularly Contractor’s Diversion goals as provided in Section 5.11. Provide
recommendations and plans to improve, and highlight significant accomplishments and problems.
B. Collection and Processing Report
1. The total Tonnage amount of Discarded Materials, listed separately by Discarded Material
type, removed by Contractor from illegal Disposal sites as part of an abatement activity, listing
each Collection event separately by date, location, and Tonnage Collected, pursuant to
Section 4.2.B of the Agreement.
2. Number of Containers at each Service Level by Customer Type and program. Summarizing the
total gallons of Cart service, cubic yards of Bin service, and pulls and cubic yards or Tons of
Drop Box and Compactor service by Customer Type. Report should calculate the average
volume of service received per: Single-Family Dwelling Unit (separately identifying Dwelling
Units in a duplex, triplex, or fourplex); Multi-Family Dwelling Unit; and, Commercial Customer.
3. A record of all compliance agreements for quarantined Organic Waste that are Disposed of,
including the name of Generator, date issued, location of final disposition, and the amount of
quarantined Organic Waste that was required to be Disposed at a landfill, pursuant to Section
4.2.C of the Agreement.
4. Written notification as to whether the Approved Organic Materials Processing Facilities have
and will continue to have the capabilities to Process and recover Compostable Plastic, in
accordance with Section 4.2.C of the Agreement.
EXHIBIT D
REPORTING REQUIREMENTS
December 3, 2020 Page D-7 City of Cupertino/Recology Franchise Exhibit D
5. Summary report of the “Coats for Kids” program.
C. Education and Outreach Report
1. A summary of the status of the annual education plan of the reporting year, including
activities conducted and the quantitative and/or qualitative results of those activities.
2. The annual public education plan required by Exhibit C of the Agreement for the upcoming
then-current calendar year. For example, Contractor submittal of a 2021 annual report in
February 2022 shall include Contractor submittal of the annual public education plan for
calendar year 2022.
D. Commercial Edible Food Generator Report
Commercial Customer list including contact information for each Commercial Customer
designated by City as either a Tier One Commercial Edible Food Generator, Tier Two Commercial
Edible Food Generator, or non-covered Edible Food Generator.
E. Vehicle Inventory
1. A list of all vehicles used in performing services under this Agreement, including the license
plate number, VIN, make, model, model year, purchase date, engine overhaul/rebuild date (if
applicable), and mileage at January 31.
2. The results of any Collection vehicle pilot programs conducted by Contractor and approved
by the City.
3. Description of the use of electric vehicles in pilot programs as well as in regular collection
service by Contractor in other jurisdictions and Contractor’s recommendation on feasibility of
use of such technology in Cupertino.
F. Temporary Equipment or Operations Failure: If Contractor is granted a Processing Facility
temporary equipment or operational failure waiver, in accordance with Section 4.1 and 4.2 of the
Agreement, Contractor shall include the following documents and information:
1. The number of days the Processing Facility temporary equipment waiver or operation failure
waiver was in effect;
2. Copies of any notifications sent to the City pursuant to Sec tions 4.1 and 4.2 of the Agreement,
and copies of City notices to Contractor pursuant to Sections 4.1 and 4.2 of the Agreement;
3. Documentation setting forth the date of issuance of the waiver, the timeframe for the waiver;
and,
4. A record of the Tons of Recyclable Materials and/or Organic Materials redirected to an
alternative facility or Disposed at an Approved Facility or Designated Disposal Facility as a
result of the waiver, recorded by Collection vehicle or transfer vehicle number/load, date, and
weight.
EXHIBIT D
REPORTING REQUIREMENTS
December 3, 2020 Page D-8 City of Cupertino/Recology Franchise Exhibit D
G. Environmentally-Preferable Purchasing Report. In accordance with Section 5.10, provide the
type of Recycled content paper and other items purchased, a summary of any other source
reduction strategies implemented during the year, and the quantified results of the source
reduction strategy.
5. ADDITIONAL REPORTS
A. Upon Incident Reporting. The City reserves the right to request additional reports or documents
in the case of unforeseen events or additional requirements imposed upon the City. Contractor
shall provide the requested reports, documents, or information within ten (10) Business Days
upon receipt of the request or within a timeframe determined by the City Contract Manager,
which shall not to exceed ten (10) days.
B. AB 901 Reporting. At the City’s option, the City may require that Contractor provide the City
copies of Contractor’s AB 901 reports on a regular basis (such as monthly, quarterly, or annually)
or within ten (10) Business Days of the request.
C. Delinquent Accounts. In accordance with Section 4.9 and at the City’s option, the City may
require that Contractor provide a list of Customers that are forty-five (45) or more calendar days
past due and include the following information for each delinquent account: name; service
address; contact information; number of days the account is delinquent; and method(s)
Contractor has used to attempt collection of the bad debt including date of such attempt(s).
D. Reviewed Financials. After the end of each year, Contractor shall submit to the City a copy of its
reviewed financial statements for such year as provided in Exhibit E. Contractor shall not be
required to submit reviewed financials in Rate Year 2 and Rate Year 3.
E. Customized Reports. The City reserves the right to request Contractor to prepare and provide
customized reports from records Contractor is required to maintain; or require a specified format
or submission system, such as the use of a web-based software platform.
F. Recyclable Materials and Organic Materials Markets. Contractor shall provide, if and to the
extent available from the Approved Recyclable Materials Processing Facility, an assessment
describing such facility’s marketing of Recyclable Materials, including: 1) quantities and dates of
Recyclable Materials marketed during the prior year; 2) actual prior year and estimated coming
year per unit or per Ton market values for each, including adjustments on previously reported
market values; and, 3) brokers, markets, and end uses for each.
G. Subcontractor Insurance Certificates. Copies of insurance certificates from Subcontractors, as
provided Section 3.3.
EXHIBIT E:
RATE ADJUSTMENT METHODOLOGY
EXHIBIT E
RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E-1 City of Cupertino/Recology Franchise Exhibit E
1. GENERAL
The Rates for Rate Period One are as specified in Table 8-2 of Section 8.2 and Exhibit G3 of this Agreement.
Subject to the terms herein, and beginning with Rate Period Four, the City shall adjust all Rates on an
annual basis for each Rate Period in accordance with Exhibit E1 or E2, as provided in Article 8 and
otherwise in this Agreement.
Contractor shall submit its application for a Rate adjustment to the City Contract Manager on or before
August 1 of each Rate Period where Rates shall be adjusted usin g the index-based methodology described
in Exhibit E1. Contractor shall submit its application on or before August 1 for any Rate Period where
Rates shall be adjusted using the cost-based methodology described in Exhibit E2. Contractor’s Rate
application shall document all calculations and include all supporting schedules, documentation of per-
Ton charges for Approved Facilities, documentation of changes in governmental fees at Approved
Facilities (if applicable), and any other documentation or evidence determined by the City Contract
Manager to be reasonably necessary to ensure that the calculation of Rate adjustments has been
performed in strict conformance to the requirements of this Exhibit E.
The City Council shall make a good faith effort to approve Rates by January 1 of each year, and such Rates
shall be effective on each subsequent February 1. If Rates are not effective by February 1 due to a delay
caused solely by the City, the City shall allow Contractor to retroactively bill Customers for the amount of
the Rate increase for any period of said delay that is solely c aused by the City (subject to the City’s approval
of how the retroactive adjustment is billed) or the City may co mpensate Contractor for lost Gross Receipts.
In the case of a delayed Rate adjustment, Contractor may bill the Customer during the next billing cycle
to recoup the deferred Rate increase. If Rates are not effective by February 1 as a result of Contractor’s
delay in submitting the Rate application in a complete and accurate form, then prior Rates remain in effect
until such adjustment is made and Contractor shall not be entitled to a retroactive adjustment for lost
Gross Receipts.
2. DEFINITIONS
Certain terms that are specific to this Exhibit (including Exhibits E1 and E2) are defined below:
A. “Annual Percentage Change” means the annual percentage change in any of the indices defined
herein calculated as described in the following paragraph.
The Annual Percentage Change for a cost index shall be calculated as: the Average Index Value for
the twelve- (12) month period ending in June of the then-current Rate Period, minus the Average
Index Value for the corresponding twelve- (12) month period ending in June of the most-recently
completed Rate Period, and the result of which shall be divided by the Average Index Value for
the same twelve- (12) month period ending in June of the most recently completed Rate Period.
For example, if Contractor is calculating the Total Calculated Costs in July 2024 to be effective for
Rate Period Five (February 2025 through January 2026), the Annual Percentage Change for the
CPI-U would be calculated as follows:
[ (Average CPI-U for July 2023 through June 2024) minus (Average CPI-U
for July 2022 through June 2023) ] divided by (Average CPI-U fo r July 2022
through June 2023)
EXHIBIT E
RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E-2 City of Cupertino/Recology Franchise Exhibit E
The calculated Annual Percentage Change shall be carried to three places to the right of the
decimal and rounded to the nearest thousandths.
B. “Average Index Value” means the sum of the monthly index values during the applicable twelve-
(12) month period divided by twelve (12) (in the case of indices published monthly) or the sum of
the bi-monthly index values during the applicable twelve- (12) month period divided by six (6) (in
the case of indices published bi-monthly).
C. “City Payments” means: 1) those annual amounts, payable by City to Contractor monthly, as are
specified in Article 8.2 for Rate Periods One, Two and Three; and 2) for subsequent Rate Periods,
such annual amounts payable by City to Contractor monthly as the City agrees to pay during the
Rate adjustment process for such Rate Period, to reduce the Rate increase that would otherwise
occur in that Rate Period. Such payments shall be effected by netting the monthly amount of the
City Payment against the monthly amount of City Fees payable by Contractor to City.
E. “CPI-U” means the Consumer Price Index, All Urban Consumers, all item s, not seasonally adjusted
San Francisco Bay Area compiled and published by the U.S. Department of Labor, Bureau of Labor
Statistics.
F. “Disposal Cost” means the cost of Disposing of Solid Waste at the Designated Disposal Facility
where the per-Ton tipping fee (cost) is the then-applicable contractual amount as confirmed by
the City.
G. “ECI” means the Employment Cost Index, Total Compensation, Private Industry, Service-Providing
Industries, seasonally adjusted, compiled and published by the U.S. Department of Labor, Bureau
of Labor Statistics.
H. “Fuel Index” means the Consumer Price Index, All Urban Consumers, Motor Fuel, San Francisco-
Oakland-Hayward, not seasonally adjusted, series ID: CUURS49BSETB, compiled and published by
the U.S. Department of Labor, Bureau of Labor Statistics.
I. “Motor Vehicle Maintenance and Repair Index” or “MVI” means the Consumer Price Index, All
Urban Consumers, Motor Vehicle Maintenance and Repair, not seasonally adjusted U.S. city
average, compiled and published by the U.S. Department of Labor, Bureau of Labor Statistics.
J. “Total Calculated Costs” means the total amount to be used as a basis for determining the Rate
Adjustment Factor. The Total Calculated Costs do not reflect or in any way guarantee the Gross
Receipts that are to be generated by Rates or retained by Contractor.
K. “Total Rate Adjustment Factor” means the Total Rate Adjustment Factor as calculated in Section
3 of Exhibit E1 for index-based adjustments, or as calculated in Section 4 of Exhibit E2 for cost-
based adjustments.
Table 1 below provides additional information about the four (4) indices defined above.
EXHIBIT E
RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E-3 City of Cupertino/Recology Franchise Exhibit E
TABLE 1*
CPI-U Fuel Index ECI Motor Vehicle
Maintenance and
Repair
Description Consumer Price
Index - All Urban
Consumers
Consumer Price
Index - All Urban
Consumers
Employment Cost
Index - Total
Compensation for
Private Industry
Workers in Service-
Providing Industries.
Consumer Price
Index – All Urban
Consumers, Motor
Vehicle
Maintenance and
Repair
Series ID CUUSS49BSA0 CUURS49BSETB CIS201S000000000I CUUR0000SETD
Adjusted Not seasonally
adjusted
Not seasonally
adjusted
Seasonally adjusted Not seasonally
adjusted
Area San Francisco-
Oakland-Hayward
San Francisco-
Oakland-Hayward
N/A U.S. City average
Item All items Motor fuel Total compensation Motor vehicle
maintenance and
repair
Base
Period
1982-84=100 1982-84=100 Dec. 2005=100 1982-84=100
Periodicity Bi-monthly Monthly Quarterly Monthly
* All indices published by the U.S. Bureau of Labor Statistics.
3. COST OF RATE ADJUSTMENT PROCESS
The City may incur costs, including consulting and legal fees, when determining adjustments to the Rates
in accordance with this Exhibit and may require Contractor to pay for such costs within sixty (60) calendar
days of receipt of the City’s invoice for such costs. Contractor may recover such costs through the Rates
by treating the costs as an allowable Pass-Through Cost. Notwithstanding the foregoing, Contractor shall
only be required to reimburse City’s costs to the extent such costs have been included as allowable Pass-
Through Costs in the Rate adjustment with respect to which the costs were incurred, and such Rate
adjustment has been approved by the City Council. Regardless of Contractor’s payment of costs associated
with said review, the City shall retain full and unimpeded discretion in selection of its agents to ensure, at
a minimum, that no conflict of interest arises in the review of Contractor’s request. The City retains the
right to select its agents on the basis of their qualifications and experience and without regard to cost.
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EXHIBIT E1:
MULTI-INDEX RATE ADJUSTMENT METHODOLOGY
EXHIBIT E1
MULTI-INDEX RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E1-1 City of Cupertino/Recology Franchise Exhibit E1
1. GENERAL
The purpose of this attachment is to describe and illustrate the method by which the City will calculate
the annual adjustment to Rates to reflect changes in various cost indices and changes to Processing and
Disposal Costs based on Tonnages of materials Collected and changes in tipping fees. This index-based
adjustment process shall be used to determine Rates for Rate Pe riods Five, Six, Seven, Nine, and Ten (and,
if the Term is extended, Twelve, Thirteen, Fourteen, and Fifteen). However, the cost-based methodology
described in Exhibit E2 shall be used to set Rates in lieu of the index adjustment to set Rates provided in
Exhibit E1, as provided in Sections 3.2, 8.2 and 8.3 of the Agreement, and the third paragraph below.
The index-based adjustment involves application of indices to various costs that comprise the Total
Proposed Annual Costs, beginning with Rate Period Four to determine the Total Calculated Costs for the
subsequent Rate Period. In addition, Processing and Disposal costs shall be adjusted to reflect actual
Tonnage Collected during the most-recently completed Rate Period.
The annual increase in Total Calculated Costs calculated pursuant to this Exhibit E1 may not exceed five
percent (5%). In the event that Total Calculated Costs for the coming Rate Period as calculated under this
Exhibit E1 exceeds by more than five percent (5%) Total Calculated Costs for the then-current Rate Period,
then Contractor may elect to either: i) accept an increase in Contractor Compensation based on an
increase in Total Calculated Costs of five percent (5%); or, ii) require that a cost-based Rate adjustment
be performed under the procedures described in Exhibit E2.
In the event that the index-based adjustment as calculated by this Exhibit E1 results in a negative Rate
Adjustment Factor, the City reserves the right to “roll-under” the Rate reduction, such that there is no
Rate adjustment in the Rate Period for which the negative Rate Adjustment Factor was calculated, but the
calculated Rate reduction may be deferred to the following Rate Period, as a credit against future Rate
increases.
2. ADJUSTMENT OF TOTAL CALCULATED COSTS
The cost categories of the main components of Total Calculated Costs are presented in detail in Exhibit
G2. Adjustments to these components to calculate costs for the coming Rate Period shall be calculated
as follows:
A. Total Annual Cost of Operations
1. Labor-Related Costs. The Labor-Related Costs component of Total Calculated Costs for the
then-current Rate Period is multiplied by one (1) plus the Annual Percentage Change in the
ECI.
For example, in Rate Period Five when calculating the Labor-Related Costs for Rate Period
Three, the Labor-Related Costs of Rate Period Four shall be multiplied by one (1) plus the
Annual Percentage change in the ECI.
2. Vehicle-Related Costs (excluding Fuel). The Vehicle-Related Costs component of Total
Calculated Costs for the then-current Rate Period is multiplied by one (1) plus the Annual
Percentage Change in the Motor Vehicle Maintenance and Repair Index.
EXHIBIT E1
MULTI-INDEX RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E1-2 City of Cupertino/Recology Franchise Exhibit E1
3. Fuel Costs. The Fuel Cost component of Total Calculated Costs for the then-current Rate
Period is multiplied by one (1) plus the Annual Percentage Change in the Fuel Index.
4. Other Costs. The Other Costs component of the Total Calculated Costs for the then-current
Rate Period is multiplied by one (1) plus the Annual Percentage Change in the CPI-U.
5. Direct Depreciation. Direct Depreciation for Containers and equipment is nine hundred and
five thousand, eight hundred and fifty-three dollars ($905,853.00) per year in Rate Periods
Two through Ten, and is not annually adjusted. If the Agreement is extended beyond Rate
Period Ten, direct depreciation shall be as set forth in Exhibit G2 (Capital Plan), unless Parties
mutually agree to a different amount.
6. Allocated Costs (Labor, Vehicle, Fuel, and Other Costs). The Allocated Costs (Labor, Vehicle,
Fuel, and Other Costs) component for the then-current Rate Period is multiplied by one (1)
plus the Annual Percentage Change in the CPI-U.
7. Allocated Depreciation. The Allocated Depreciation shall be thirty five thousand, three
hundred and eleven dollars ($35,311.00) per year in Rate Periods Two through Ten, and is not
annually adjusted. These costs shall be zero (0) for all subsequent Rate Periods unless Parties
mutually agree to a different amount.
8. Total Annual Cost of Operations. The Total Annual Cost of Operations for the coming Rate
Period equals the sum of the costs calculated in this Exhibit E1, Section 2.A.1-7 above.
B. Profit. Profit for the coming Rate Period shall be calculated by dividing the Total Annual Cost of
Operations for the coming Rate Period (the value calculated in Section 2.A.8 above) by an
operating ratio of seventy-two and one-half percent (72.5%) and subtracting from the result the
Total Annual Cost of Operations for the coming year.
Profit =
Total Annual Cost of Operations
___for Coming Rate Period___
Operating Ratio
− Total Annual Cost of Operations
for Coming Rate Period
C. Pass-Through Costs (Excluded from the Calculation of Profit)
1. Recyclable Materials Processing Costs. The Recyclable Materials Processing Costs shall be
calculated as follows:
Recyclable Materials Processing Costs = Per-Ton Recycling Materials Processing fee at the
Approved Recyclable Materials Processing Facility for the coming Rate Period x Total Tons of
Recyclable Materials Collected for the most-recently completed twelve- (12) month period.
If the City approves a change in the Approved Recyclables Material Processing Facility or the
Designated Recyclables Material Processing Facility, the Recyclable Materials Processing Cost
shall adjust by the actual change in the costs, as specified in the Recyclable Materials
Processing contract.
2. Organic Materials Processing Costs. The Organic Materials Processing Costs shall be
calculated as follows:
EXHIBIT E1
MULTI-INDEX RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E1-3 City of Cupertino/Recology Franchise Exhibit E1
Residential Organic Materials Processing Costs
Residential Organic Materials Processing Cost = [(Per-Ton Residential Organic Materials
Processing Cost for the then-current Rate Period - All regulatory fees identified on Form 7 of
Exhibit G2, (Contractor’s Proposal) and included in the then-current per-Ton cost) x (1 +
Annual Percentage Change in the CPI-U) + (Then-current per-Ton regulatory fees)] x (Total
Tons of Residential Organic Materials Collected for the most-recently completed twelve- (12)
month period).
Commercial Organic Materials Processing Costs
Commercial Organic Materials Processing Cost = [(Per-Ton Commercial Organic Materials
Processing Cost for the then-current Rate Period - All regulatory fees identified on Form 7 of
Exhibit G2, (Contractor’s Proposal) and included in the then-current per-Ton cost) x (1 +
Annual Percentage Change in the CPI-U) + (Then-current per-Ton regulatory fees)] x (Total
Tons of Commercial Organic Materials Collected for the most-rec ently completed twelve- (12)
month period). Residential Organic Materials Processing Costs and Commercial Organic
Materials Processing Costs shall be inclusive of transfer costs.
If the City approves a change in the Approved Organic Materials Processing Facility, the
Processing Costs shall adjust to the then-current tip fee at the new Approved Organic
Materials Processing Facility.
3. Disposal & C&D Processing Costs. The Disposal Costs and C&D Processing Costs shall be
calculated as follows:
Disposal Costs = Per-Ton Disposal fee at the Designated Disposal Facility for the coming Rate
Period x Total Tons of Solid Waste Collected for the most-recently completed twelve- (12)
month period.
C&D Processing Costs = Per-Ton Processing fee at the Designated C&D Processing Facility for
the coming Rate Period x Total Tons of C&D Collected for the most-recently completed
twelve- (12) month period.
If the City approves a change in the Designated Disposal Facility or the Approved Disposal
Facility, or the Designated C&D Processing Facility or the Approved C&D Processing Facility
the Disposal Costs or C&D Processing Costs (as the case may be) shall adjust to the then-
current tip fee at the new facility.
4. Interest Expense. The Interest Expense amount is three hundred twenty six thousand, six
hundred and fifty-five dollars ($326,655) in Rate Periods Two through Ten, is not annually
adjusted, and shall be zero (0) in any subsequent Rate Period unless Parties mutually agree to
a different amount.
5. Direct Lease Costs. The Direct Lease Costs amount is zero (0) in Rate Periods Two through
Ten, is not annually adjusted, and shall be zero in any subsequent Rate Period unless Parties
mutually agree to a different amount.
EXHIBIT E1
MULTI-INDEX RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E1-4 City of Cupertino/Recology Franchise Exhibit E1
6. Allocated Lease Costs. The Allocated Lease Costs amount is one hundred eighty thousand
dollars ($180,000) in Rate Periods Two through Ten (including interest costs for Allocated
General and Administrative of $0, Allocated Vehicle Maintenance costs of $0, and Allocated
Container Maintenance of $0), is not annually adjusted, and shall remain unadjusted in any
subsequent Rate Period unless Parties mutually agree to a different amount.
7. Total Pass-Through Costs. Total Pass-Through Costs for the coming Rate Period are the sum
of the amounts in this Exhibit E1, Section 2.C.1-6 above.
D. Total Calculated Costs before City Fees/Reimbursements. The Total Calculated Costs before City
Fees/Reimbursements shall be the sum of the Total Annual Cost of Operations, Profit, and Total
Pass-Through Costs for the coming Rate Period.
E. City Fees/Reimbursements
1. Franchise Fee. Franchise Fees for the coming Rate Period shall equal twelve percent (12%) of
projected Gross Receipts for the coming Rate Period less any other City Fees. While the
Franchise Fee is calculated based on Gross Receipts less any other City Fees for the purposes
of this formula, it shall be paid out of Contractor’s profit.
2. Solid Waste Fund Operations Fee. The Solid Waste Fund Operations Fee payment for the
coming Rate Period shall equal the total Solid Waste Fund Operations Fee paid to the City in
the most-recently completed twelve- (12) month period multiplied by one (1) plus the Annual
Percentage Change in the CPI-U, or such other amount as is determined by City in accordance
with Section 7.2.
3. Other City Fees. The amount for the coming Rate Period of any other fees established by City
under Section 7.3.
4. Rate Application Review Costs. The amount that Contractor is required to pay City to
reimburse City for City’s costs, including consulting and legal fees, associated with
determination of Rates for the coming Rate Period.
5. Total City Fees/Reimbursements. The Total City Fees/Reimbursements for the coming Rate
Period shall equal costs calculated in this Exhibit E1, Section 2.E.1-4 above; provided,
however, that any adjustment in any such fee, whether pursuant to the relevant index or as
the result of the decision of the City, shall be pass-through fees (excluded from the calculation
of profit) and reflected in the Total City Fees/Reimbursements.
F. Other Adjustments. From time to time during the Term of the Agreement, it may be necessary to
make other adjustments to the compensation calculations, either as mutually agreed or as
required under various provisions of this Agreement. For example, if the City elects to roll-under
a negative Rate adjustment to a future year, the dollar value of that negative adjustment shall be
reflected as an adjustment. In such case, the adjustment would be a reduction to the Total
Calculated Costs. Amounts that Contractor is entitled to recover under this Agreement shall be
reflected as a positive adjustment that increases Total Calculated Costs.
EXHIBIT E1
MULTI-INDEX RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E1-5 City of Cupertino/Recology Franchise Exhibit E1
G. Total Calculated Costs. The Total Calculated Costs for the coming Rate Period shall equal the sum
of the Total Annual Cost of Operations, Profit, Total Pass-Through Costs, Total City
Fees/Reimbursements, and Other Adjustments (if applicable), for the coming Rate Period.
3. TOTAL RATE ADJUSTMENT FACTOR
The Total Rate Adjustment Factor shall equal: (i) the Total Calculated Costs for the coming Rate Period
divided by (ii) the amount obtained by subtracting the City Payments for the then-current Rate Period
from the Total Calculated Costs for the then-current Rate Period. The Total Rate Adjustment Factor shall
be rounded to the nearest thousandth.
4. ADJUSTMENT OF RATES
City may, as part of the Rate adjustment process for the coming Rate Period, do either or both of the
following:
A. Agree to make a City Payment in the coming Rate Period, so as to reduce the Rate increase that
would otherwise occur in that Rate Period; and/or,
B. Request a change in the relationship of individual Rates in comparison with other Rates, which
may include changing the relationship of Rates across sector(s) and/or material stream(s). Section
8.2.D (Rate Structure) shall apply to any change under this subsection 4.B. If City wishes to do
this, then City may request the Contractor to resubmit its Rate application by sector(s) and/or
material type(s), so as to enable City to address over/under-funding of particular sector(s) and/or
material type(s).
If City does either 4.A or 4.B above, then Rates shall be adjusted such that projected Gross Receipts for
the coming Rate Period at the adjusted Rates, plus any City Payments that City agrees to make for that
coming Rate Period, equal or exceed Total Calculated Costs for the coming Rate Period.
If City does neither 4.A nor 4.B above, then each then-current Rate shall be multiplied by the Total Rate
Adjustment Factor, to calculate the effective Rate for the coming Rate Period. The adjustment to each
Rate shall be rounded to the nearest cent.
5. EXAMPLES
The following examples illustrates the index-based adjustment method for determining Rates for Rate
Period Five. The dollar amounts shown are hypothetical amounts for Total Calculated Costs for Rate
Period Four (February 1, 2024 through January 31, 2025) and the adjustment factors are based on
assumed changes in the various indices between the Average Index Values for the twelve (12) months
ending January 2023 and for the twelve (12) months ending January 2024. Example A depicts a standard
index-based adjustment, wherein the calculated Total Calculated Costs increased greater than zero
percent (0%) and less than five percent (5%) over the prior Rat e Period. Example B depicts an index-based
adjustment wherein the calculated Total Calculated Costs resulted in a decrease from the prior Rate
Period.
A. Example A
1. Assumptions for Example Adjustment to Contractor’s Compensation:
EXHIBIT E1
MULTI-INDEX RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E1-6 City of Cupertino/Recology Franchise Exhibit E1
Most-Recently Completed Rate Period = Rate Period Three (February 1, 2023 through January
31, 2024)
Then-current Rate Period = Rate Period Four (February 1, 2024 through January 31, 2025)
Coming Rate Period = Rate Period Five (February 1, 2025 through January 31, 2026)
Solid Waste Disposal Cost per Ton for the coming Rate Period = $52.27 per Ton (C&D
Processing Cost assumed to be same as Solid Waste Disposal Cost)
Recyclable Materials Processing Costs per Ton for the coming Rate Period = $39.78 per Ton
Residential Organic Materials Processing Costs per Ton for the then-current Rate Period =
$98.65 per Ton
Commercial Organic Materials Processing Costs per Ton for the then-current Rate Period =
$134.20 per Ton
Annual Percentage Change in the ECI = 0.018
Annual Percentage Change in the CPI-U = 0.040
Annual Percentage Change in the Motor Vehicle Maintenance and Repair Index = 0.031
Annual Percentage Change in the Fuel Index = 0.075
Solid Waste Fund Operations Fee – Directed by City to increase by CPI-U for Rate Period 5
Last twelve (12) months of Gross Receipts = $18,600,000
Rate Period 4 City Payment = $279,544
Tonnages for the most-recently completed twelve- (12) month period:
Solid Waste – 18,000 Tons
Recyclable Materials – 8,000 Tons
Residential Organic Materials – 9,300 Tons
Commercial Organic Materials – 5,200 Tons
C&D – 2,500 Tons
EXHIBIT E1
MULTI-INDEX RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E1-7 City of Cupertino/Recology Franchise Exhibit E1
Note: All values presented in this table are hypothetical and used for illustrative purposes
only.
TABLE 1A
Example A Calculation of Total Calculated Costs for Rate Period Five
Rate Period
Four
Adjustment
Index
Adjustment
Factor
Rate Period
Five
Processing Tip Fee Adjustment (per Ton)
Solid Waste Disposal Tip Fee 50.26$ N.A. N.A. 51.77$
Recyclables Material Processing Rebate 38.25$ N.A. N.A. 39.40$
Residential Organic Materials Processing Tip Fee 98.65$ CPI-U 1+0.040 102.60$
Commercial Organic Materials Processing Tip Fee 134.20$ CPI-U 1+0.040 139.57$
C&D Processing Tip Fee* 50.26$ N.A. N.A. 51.77$
Annual Cost of Operations
Labor-related Costs 4,443,290$ ECI 1+0.018 4,523,269$
Vehicle-related Costs (excluding fuel) 643,477$ MVI 1+0.031 663,425$
Fuel Costs 383,049$ Fuel Index 1+0.075 411,778$
Other Costs 353,725$ CPI-U 1+0.040 367,874$
Direct Depreciation 905,853$ N.A. N.A. 905,853$
Allocated Costs (Labor, Vehicle, Fuel, and Other Costs)3,312,841$ CPI-U 1+0.040 3,445,355$
Allocated Costs (Depreciation and Start-Up) 35,311$ N.A. N.A. 35,311$
Total Annual Cost of Operations 10,077,545$ 10,352,864$
Profit (assuming operating ratio of .725) 3,822,517$ 3,926,948$
Pass Through Costs
Solid Waste Disposal Costs 881,109$ Tip Fee x Tons 18,000 x $51.77 931,787$
Recyclable Materials Processing Costs 308,522$ Tip Fee x Tons 8,000 x $39.40 315,186$
Residential Organic Materials Processing Costs 913,425$ Tip Fee x Tons 9,300 x $102.60 954,179$
Commercial Organic Materials Processing Costs 694,383$ Tip Fee x Tons 5,200 x $139.57 725,749$
C&D Processing Costs 127,475$ Tip Fee x Tons 2,500 x $51.77 129,415$
Reusable Materials Handling Costs -$ Tip Fee x Tons 0 x $0.00 -$
Interest Expense 326,655$ N.A. N.A. 326,655$
Direct Lease Costs -$ N.A. N.A. -$
Allocated Lease Costs 180,000$ N.A. N.A. 180,000$
Total Pass-Through Costs 3,431,569$ 3,562,971$
Total Calculated Costs before City Reimbursements 17,331,632$ 17,842,783$
Cost Reimbursements to City
Solid Waste Fund Operations Fee 1,547,912$ CPI-U** 1+0.040 1,609,829$
Total Reimbursements to City 1,547,912$ 1,609,829$
Total Calculated Costs 18,879,544$ 19,452,611$
Gross Operating Margin 3,822,517$ 3,926,948$
Franchise Fee 2,284,235$ N.A. N.A. 2,313,732$
Net Profit Margin 1,538,282$ 1,613,217$
Other Adjustments (City Payments) (279,544)$ (171,514)$
**The Solid Waste Fund Operations Fee may be increased by the CPI-U or at the City's discretion.
*Newby currently charges the same rate for Solid Waste Disposal and C&D Processing. If the City designates a new facility(ies) for disposal and
processing, there may be two separate tip fees.
EXHIBIT E1
MULTI-INDEX RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E1-8 City of Cupertino/Recology Franchise Exhibit E1
2. Example Calculation of the Rate Adjustment Factor and Adjusted Rate for Rate Period Five
Rate Adjustment Factor = $19,452,611/($18,879,544-$279,544) = 1.046
Proposed City Payment as detailed in Exhibit E1 Section 4.A = $171,514
City does not propose resubmission of individual Rates that address over/under-funding of particular
sector(s) and/or material type(s) as detailed in Exhibit E1 Section 4.B.
Rate Adjustment Factor considering City Payment = ($19,425,611-$171,514)/($ 18,879,544-$279,544) =
1.037
32-gallon Single-Family Rate for Rate Period Five = $45.41 x 1.037 = $47.07, which shall be effective
February 1, 2025.
B. Example B
1. Assumptions for Example Adjustment to Contractor’s Compensation:
Most-Recently Completed Rate Period = Rate Period Three (February 1, 2023 through January
31, 2024)
Then-current Rate Period = Rate Period Four (February 1, 2024 through January 31, 2025)
Coming Rate Period = Rate Period Five (February 1, 2025 through January 31, 2026)
Solid Waste Disposal Cost per Ton for the coming Rate Period = $52.27 per Ton (C&D
Processing Cost assumed to be same as Solid Waste Disposal Cost)
Recyclable Materials Processing Costs per Ton for the coming Rate Period = $39.78 per Ton
Residential Organic Materials Processing Costs per Ton for the then-current Rate Period =
$98.65 per Ton
Commercial Organic Materials Processing Costs per Ton for the then-current Rate Period =
$134.20 per Ton
Annual Percentage Change in the ECI = (0.018)
Annual Percentage Change in the CPI-U = (0.040)
Annual Percentage Change in the Motor Vehicle Maintenance and Repair Index = 0.031
Annual Percentage Change in the Fuel Index = (0.075)
Solid Waste Fund Operations Fee – Directed by City to remain flat for Rate Period 5
Last twelve (12) months of Gross Receipts = $18,600,000
Rate Period 4 City Payment = $279,544
Tonnages for the most-recently completed twelve- (12) month period:
Solid Waste – 18,000 Tons
Recyclable Materials – 8,000 Tons
Residential Organic Materials – 9,300 Tons
Commercial Organic Materials – 5,200 Tons
C&D – 2,500 Tons
EXHIBIT E1
MULTI-INDEX RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E1-9 City of Cupertino/Recology Franchise Exhibit E1
Note: All values presented in this table are hypothetical and used for illustrative purposes
only.
TABLE 2A
Example B Calculation of Total Calculated Costs for Rate Period Five
Rate Period
Four
Adjustment
Index
Adjustment
Factor
Rate Period
Five
Processing Tip Fee Adjustment (per Ton)
Solid Waste Disposal Tip Fee 50.26$ N.A. N.A. 51.77$
Recyclables Material Processing Rebate 38.25$ N.A. N.A. 39.40$
Residential Organic Materials Processing Tip Fee 98.65$ CPI-U 1+ -0.040 94.71$
Commercial Organic Materials Processing Tip Fee 134.20$ CPI-U 1+ -0.040 128.83$
C&D Processing Tip Fee* 50.26$ N.A. N.A. 51.77$
Annual Cost of Operations
Labor-related Costs 4,443,290$ ECI 1+ -0.018 4,363,310$
Vehicle-related Costs (excluding fuel) 643,477$ MVI 1+0.031 663,425$
Fuel Costs 383,049$ Fuel Index 1+ -0.075 354,321$
Other Costs 353,725$ CPI-U 1+ -0.040 339,576$
Direct Depreciation 905,853$ N.A. N.A. 905,853$
Allocated Costs (Labor, Vehicle, Fuel, and Other Costs) 3,312,841$ CPI-U 1+ -0.040 3,180,327$
Allocated Costs (Depreciation and Start-Up) 35,311$ N.A. N.A. 35,311$
Total Annual Cost of Operations 10,077,545$ 9,842,123$
Profit (assuming operating ratio of .725) 3,822,517$ 3,733,219$
Pass Through Costs
Solid Waste Disposal Costs 881,109$ Tip Fee x Tons 18,000 x $51.77 931,787$
Recyclable Materials Processing Costs 308,522$ Tip Fee x Tons 8,000 x $39.40 315,186$
Residential Organic Materials Processing Costs 913,425$ Tip Fee x Tons 9,300 x $94.71 880,780$
Commercial Organic Materials Processing Costs 694,383$ Tip Fee x Tons 5,200 x $128.83 669,922$
C&D Processing Costs 127,475$ Tip Fee x Tons 2,500 x $51.77 129,415$
Reusable Materials Handling Costs -$ Tip Fee x Tons 0 x $0.00 -$
Interest Expense 326,655$ N.A. N.A. 326,655$
Direct Lease Costs -$ N.A. N.A. -$
Allocated Lease Costs 180,000$ N.A. N.A. 180,000$
Total Pass-Through Costs 3,431,569$ 3,433,746$
Total Calculated Costs before City Reimbursements 17,331,632$ 17,009,087$
Cost Reimbursements to City
Solid Waste Fund Operations Fee 1,547,912$ N.A.** 1,547,912$
Total Reimbursements to City 1,547,912$ 1,547,912$
Total Calculated Costs 18,879,544$ 18,556,999$
Gross Operating Margin 3,822,517$ 3,733,219$
Franchise Fee 2,284,235$ N.A. N.A. 2,284,235$
Net Profit Margin 1,538,282$ 1,448,984$
Other Adjustments (City Payments) (279,544)$ -$
**The Solid Waste Fund Operations Fee may be increased by the CPI-U or at the City's discretion.
*Newby currently charges the same rate for Solid Waste Disposal and C&D Processing. If the City designates a new facility(ies) for disposal and
processing, there may be two separate tip fees.
EXHIBIT E1
MULTI-INDEX RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E1-10 City of Cupertino/Recology Franchise Exhibit E1
2. Example Calculation of the Rate Adjustment Factor and Adjusted Rate for Rate Period Five
Total Calculated Costs = $18,556,999 < ($18,879,544-$279,544); Adjusted Total Calculated
Costs = $18,600,000 (Total Calculated Costs less City Payments from prior Rate Period)
Rate Adjustment Factor = $18,600,000/ $18,600,000= 1.00
No City Payment is proposed as clarified in Exhibit E1 Section 4.A as Total Calculated Costs for
the coming Rate Period < Total Calculated Costs less City Payme nt from the then-current Rate
Period.
32-gallon Single-Family Rate for Rate Period Five = $45.41 x 1.00= $45.41, which shall be
effective February 1, 2025 (i.e., NO RATE ADJUSTMENT).
NOTE: Except if requested by the City, the rates will not change from prior Rate Period. The
City may request Contractor resubmit individual Rates that address over/under-funding of
particular sector(s) and/or material type(s), as described in Exhibit E1 Section 4.B, where rates
still generating the same total rate revenue.
Subsequent Rate Period Adjustment. $18,600,000 - $18,556,999 = $43,001 cost savings to be
applied as an “Other Adjustment” in the subsequent Rate Period adjustment calculations as
an offset to Contractor’s Total Calculated Costs.
3. OTHER
If an index described in Exhibit E is discontinued, the successor index with which it is replaced shall be
used for subsequent calculations. If no successor index is identified by the Bureau of Labor Statistics, the
index which is most comparable shall be used.
EXHIBIT E2:
COST-BASED RATE ADJUSTMENT METHODOLOGY
EXHIBIT E2
COST-BASED RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E2-1 City of Cupertino/Recology Franchise Exhibit E2
1. GENERAL
The Parties shall use the cost-based Rate adjustment method described in this Exhibit to determine Rates
for the Rate Periods specified in Section 8.2, or in the event of a change in scope (under the circumstances
described in Section 3.5) or Change in Law, or pursuant to Section 3.2 or 8.2 or the third paragraph of
Section 1 of Exhibit E1.1 The cost-based adjustment involves review of Contractor’s actual cost of
operations and operational statistics (e.g., staffing levels, routes, route hours, Customers and their service
levels) to determine the Actual Allowable Total Annual Cost of Operations for the most-recently
completed Rate Period, the Forecasted Total Calculated Costs for the coming Rate Period, and the
Contractor’s Compensation.
The intent of performing the cost-based adjustment is to examine the actual impact of changes in inflation
or deflation, the number of Customers, and the Service Level of Customers.
The Forecasted Total Annual Cost of Operations calculated pursuant to this Exhibit E2 for the coming Rate
Period (adjusted per the first paragraph of Section 2 of this Exhibit E2, if applicable) may not exceed by
more than five percent (5%) the Total Annual Cost of Operations for the then-current Rate Period.
In the event that the cost-based adjustment calculated in accordance with this Exhibit E2 results in a
negative Rate Adjustment Factor, the City reserves the right to “roll-under” the Rate reduction, such that
there is no Rate adjustment in the Rate Period for which the negative Rate Adjustment Factor was
calculated, but the calculated Rate reduction may be deferred to the following Rate Period, as a credit
against future Rate increases.
A. Contractor’s Rate Application. Contractor’s Rate application for any Rate Period where Rates shall
be adjusted using the cost-based methodology described in this Exhibit E2 shall include the
information described in this Section 1.A. With the exception of the information identified in
Section 1.A.1, and 1.A.2 below, all other items listed may be requested by the City Contract
Manager at any time during the Term of the Agreement and Contractor shall comply with that
request in a timely fashion.
1. Financial Statements. Within one hundred twenty (120) calendar days after the close of the
Agreement year, Contractor shall deliver to the City one (1) hard copy of the reviewed
consolidated financial statements of Contractor for the preceding Agreement year. Financial
statements shall include a supplemental combining schedule showing Contractor’s results of
operations, including the specific revenues and expenses in connection with the operations
provided for in this Agreement separate from others included in such financial statements.
The financial statements and footnotes shall be prepared in accordance with Generally
Accepted Accounting Principles (GAAP) consistently applied and fairly reflecting the results of
operation and Contractor’s financial condition. Annual financial statements shall be
reviewed, in accordance with Generally Accepted Auditing Standards (GAAS) by a Certified
Public Accountant (CPA) licensed (in good standing) to practice public accounting in the State
as determined by the State Department of Consumer Affairs Board of Accountancy.
1 Exhibit E2 dates (such as providing for use of 12 months of tonnage ending in October) assume use of the Exhibit
E2 for an annual Rate adjustment; dates for use of data should be adjusted as necessary to accommodate any off-
schedule adjustment.
EXHIBIT E2
COST-BASED RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E2-2 City of Cupertino/Recology Franchise Exhibit E2
2. Financial Statement Reconciliation. Contractor shall provide a schedule that clearly and
accurately ties the amounts shown in Contractor’s Rate application to Contractor’s financial
statements. Such schedule shall include any and all allocation factors and methodologies used
to report cost and operating information for services provided to the City under this
Agreement separately from Contractor obligations related to other public or private entities.
Such statement of reconciliation shall include:
a. General explanation of the various allocation methodologies used for each Rate
application line item.
b. Specific examples of each type of allocation used showing how an entry is reported in
the general ledger and ties to the Rate application.
c. Statement indicating whether there have been any changes in allocation methods used
since the last Rate application. If any allocation methods have changed clearly identify
those changes.
3. Operational Information.
a. Routes by Line of Business:
i. Number of routes per day.
ii. Types of vehicles.
iii. Crew size per route.
iv. Number of full time equivalent (FTE) routes.
v. Number of accounts and cubic yards scheduled per route.
vi. Total route hours per Line of Business per year.
vii. Average cost per route.
b. Personnel:
i. Organizational chart.
ii. Job classifications and number of employees (e.g., administrative, Customer service
representatives, drivers, supervisors, educational staff).
iii. Union wages by job classification.
iv. Number of FTE positions for each job classification.
v. Number of hours per job classification per year.
EXHIBIT E2
COST-BASED RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E2-3 City of Cupertino/Recology Franchise Exhibit E2
c. Productivity Statistics:
i. Average Number of accounts per route per day by Line of Business.
ii. Average number of setouts per route per day by Line of Business.
iii. Average Tons per route per day by vehicle type (i.e., side-loader, front-loader, roll-
off).
iv. Average cubic yards of Collection scheduled per route.
d. Vehicles:
i. List of Collection vehicles including year purchased and mileage.
ii. Average age of mobile equipment with oldest and newest.
e. Operational Changes:
i. Number of routes.
ii. Staffing.
iii. Supervision.
iv. Collection services.
5. Variance Analysis. Provide the following variance analysis for each Line of Business. For any
variances greater than five percent (5%) annually, Contractor shall provide sufficient rationale
to support variance:
a. Variance analysis comparing current Rate Period to each of the prior Rate Periods of
Agreement.
b. Variance analysis comparing current Rate Period to each of the future projected Rate
Periods.
6. Projections. Provide the following projection data:
a. Provide support for the basis for projected Gross Receipts and line item expenses,
clearly indicate the supporting calculations and assumptions.
b. Provide support for the most recent twelve (12) months of Tonnage data for Rate
Period, ending in the May preceding the August 1 Rate application due date. Clearly
indicate the supporting calculations and assumptions.
EXHIBIT E2
COST-BASED RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E2-4 City of Cupertino/Recology Franchise Exhibit E2
2. FORECASTING TOTAL CALCULATED COSTS
The Total Calculated Costs for the coming Rate Period shall be forecasted in the manner described in this
Section, assuming no change in operations between the most-recently completed Rate Period and the
coming Rate Period. If there is or is reasonably expected to be a change in operations directed by the City
or resulting from a Change in Law (e.g., a change in a Designated Facility as described in Section 3.2 that
affects Contractor’s labor, vehicle-related and fuel costs, or change in scope as described in Section 3.5),
then notwithstanding any other provision, appropriate adjustments shall be made to forecasted cost and
revenue line items so that they reflect reasonable good faith estimates of the cost and revenue impacts
of the change, and such cost and revenue impacts shall be excluded from Forecasted Total Annual Cost of
Operations for the coming Rate Period in determining whether the five percent (5%) cap set forth in
Section 1 of this Exhibit E2 has been met.
A. Forecasting Total Annual Cost of Operations
1. Determine Actual Allowable Total Annual Cost of Operations. The City or its designated
representative(s) shall review Contractor's financial statements, books, and records to
determine Contractor's “Actual Allowable Total Annual Cost of Operations” for the most-
recently completed Rate Period. Such cost shall be Contractor’s costs to perform all the
obligations of Contractor under this Agreement (excluding the costs of Disposal and
processing fees and of payments to City) in the manner required by this Agreement, and shall
be divided into the following cost categories:
a. Actual labor-related costs
b. Actual vehicle-related costs (excluding fuel and depreciation)
c. Actual fuel costs
d. Actual other costs (as defined on Form 6E of Exhibit G2)
e. Direct Container and equipment depreciation costs (in the amount specified in Exhibit
E1)
f. Actual allocated costs (labor, vehicle, general and administrative, and other costs)
g. Actual allocated costs (depreciation and start-up) (in the amount stated in Exhibit E1)
2. Non-Allowable Costs. The following list of non-allowable costs shall be deducted from
Contractor’s actual costs when determining the Actual Allowable Total Annual Cost of
Operations.
a. Labor, equipment, fuel, and start-up costs for personnel, vehicles, and facilities that are
not specified in the proposal forms contained in Exhibit G2 and that cannot be
demonstrated to have been incurred as part of the performance of services under this
Agreement.
b. Payments to directors and/or Owners of Contractor unless the amount paid is
EXHIBIT E2
COST-BASED RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E2-5 City of Cupertino/Recology Franchise Exhibit E2
reasonable compensation for services actually rendered. Reasonableness shall be
determined based on available market pricing for similar services and shall be in the
sole discretion of the City.
c. Travel expenses and entertainment (above five thousand dollars ($5,000) annually in
total) expenses, unless authorized in advance by the City.
d. Payments to repair damage to public or private property for which Contractor is legally
liable.
e. Fines or penalties of any nature.
f. Liquidated Damages assessed under this Agreement.
g. Federal or State income taxes.
h. Cash donations or value of in-kind services provided to charitable, political, youth, civic,
or other community organizations, unless such donations or in-kind services are
expressly provided for under this Agreement, or have been previously approved in
writing as an allowable expense by the City Contract Manager.
i. Depreciation or interest expense for Collection vehicles, Containers, other equipment,
offices and other facilities if such items are leased as specified in Exhibit G2.
j. Attorney's fees and other expenses incurred by Contractor in any court proceeding in
which the City and Contractor are adverse Parties.
k. Attorney's fees and other expenses incurred by Contractor arising from any act or
omission in violation of this Agreement.
l. Attorneys' fees and other expenses incurred by Contractor in any court proceeding in
which Contractor's own negligence, violation of law or regulation, or wrong doing are
in issue and occasion, in whole or in part, the attorneys' fees and expenses claimed; and
attorneys' fees and expenses incurred by Contractor in a court proceeding in which the
legal theory or statute providing a basis of liability against Contractor also provides for
separate potential liability for the City derived from the action of its citizens or Rate
payers (such as in a CERCLA lawsuit) unless Contractor is found not liable in such claims
and such claims arise from acts or occurrences within the Term of the Agreement.
m. Payments to Related-Party Entities for products or services, in excess of the cost to the
Related-Party Entities for those products or services. Approved Facilities that are
operated by Related-Party Entities or Affiliates of Contractor and have a stipulated
tipping fee in Contractor’s Proposal shall not be subject to this limitation and only the
tipping fee and any contemplated adjustments thereto shall be allowable expenses.
n. Goodwill.
EXHIBIT E2
COST-BASED RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E2-6 City of Cupertino/Recology Franchise Exhibit E2
o. Unreasonable profit-sharing distributions.
p. Replacement costs for Containers that need to be replaced because the useful life of
such Container was less than the Term.
q. Administrative costs greater than the administrative costs presented in Contractor’s
Proposal (i.e., each of the items listed as General & Administrative on Form 6F of Exhibit
G2) adjusted annually by one (1) plus the Annual Percentage Change in the CPI-U.
r. Bad debt write-offs in excess of two percent (2%) of annual Gross Receipts.
3. Forecast Total Annual Cost of Operations. Forecasted Total Annual Cost of Operations for
the coming Rate Period shall be calculated based on Actual Allowed Total Cost of Operations
for the most-recently completed Rate Period determined in accordance with Sections 2.A.1
and 2.A.2 above. The forecasts shall be performed in the following manner:
a. Forecasted labor-related costs shall be calculated for the coming Rate Period by (i)
multiplying the allowed labor-related costs, both direct and allocated, for the most-
recently completed Rate Period by one (1) plus the Annual Percentage Change in the
CPI-U, and (ii) multiplying the result of step one once more by one (1) plus the Annual
Percentage Change in the CPI-U.
b. Forecasted vehicle-related costs (excluding fuel and depreciation costs) shall be
calculated for the coming Rate Period by (i) multiplying the allowed vehicle-related
costs, both direct and allocated, for the most-recently completed Rate Period by one
(1) plus the Annual Percentage Change in the Motor Vehicle Maintenance and Repair
Index, and (ii) multiplying the result of step one once more by one (1) plus the Annual
Percentage Change in the Motor Vehicle Maintenance and Repair Index.
c. Forecasted fuel costs shall be calculated for the coming Rate Period by (i) multiplying
the allowed fuel costs, both direct and allocated, for the most-recently completed Rate
Period by one (1) plus the Annual Percentage Change in the Fuel Index, and (ii)
multiplying the result of step one once more by one (1) plus the Annual Percentage
Change in the Fuel Index.
d. Forecasted other costs shall be calculated for the coming Rate Period by (i) multiplying
the allowed other-related costs, both direct and allocated, for the most-recently
completed Rate Period by one (1) plus the Annual Percentage Change in CPI-U, and (ii)
multiplying the result of step one once more by one (1) plus the Annual Percentage
Change in the CPI-U.
e. Forecasted direct depreciation expense shall be the amount specified in Exhibit G2 for
vehicles, Containers, and facilities. Direct depreciation expense is a fixed cost and is not
subject to inflation.
f. Forecasted allocated labor-related, vehicle-related, general and administrative, and
other costs shall be calculated for the coming Rate Period by (i) multiplying the allowed
EXHIBIT E2
COST-BASED RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E2-7 City of Cupertino/Recology Franchise Exhibit E2
other-related costs for most-recently completed Rate Period by one (1) plus the Annual
Percentage Change in CPI-U, and (ii) multiplying the result of step one once more by
one (1) plus the Annual Percentage Change in CPI-U.
g. Forecasted allocated depreciation and start-up expense shall be the amount specified
in Section 2.A.7 of Exhibit E1 for vehicles, Containers, and facilities.
h. Forecasted Total Annual Cost of Operations for the coming Rate Period shall equal the
sum of the following costs, which shall have been calculated in accordance with the
procedures in this Exhibit E2, and shall be subject to the five percent (5%) cap described
in Section 1 of this Exhibit E2:
i. Forecasted labor-related costs
ii. Forecasted vehicle-related costs (excluding fuel and depreciation costs)
iii. Forecasted fuel costs
iv. Forecasted other costs
v. Forecasted direct depreciation expense
vi. Forecasted allocated labor-related, vehicle-related, general and administrative, and
other costs
vii. Forecasted allocated costs for depreciation and start-up
B. Forecast Profit. Contractor shall be entitled to Profit on Forecasted Total Annual Cost of
Operations. Profit shall be calculated using an operating ratio of seventy-two and one-half
percent (72.5%) as proposed by Contractor and described in Exhibit G2. Profit shall be calculated
using the following formula:
Profit = (Forecasted Total Annual Cost of Operations / Operating Ratio) – Forecasted Total Annual
Cost of Operations
For example:
1. Assuming an operating ratio of 72.5
2. Assuming a Forecasted Total Annual Cost of Operations of $1,000,000
3. Profit = ($1,000,000 / 0.725) – $1,000,000 = $379,310.35
C. Forecast Pass-Through Costs. Pass-Through Costs for the coming Rate Period shall be forecasted
in the following manner:
1. Forecasted Recyclable Materials Processing costs shall be calculated in the manner described
in Section 2.C.1 of Exhibit E1.
EXHIBIT E2
COST-BASED RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E2-8 City of Cupertino/Recology Franchise Exhibit E2
2. Forecasted Residential Organic Materials Processing costs shall be calculated in the manner
described in Section 2.C.2 of Exhibit E1.
3. Forecasted Commercial Organic Materials Processing costs shall be calculated in the manner
described in Section 2.C.2 of Exhibit E1.
4. Forecasted Disposal costs shall be calculated in the manner described in Section 2.C.3 of
Exhibit E1.
5. Forecasted Interest Expense. Interest Expense is three hundred twenty six thousand, six
hundred and fifty-five dollars ($326,655) per year and shall not be adjusted over the Term of
the Agreement. See Section 2.C.4 of Exhibit E1.
6. Forecasted Direct Lease Costs. Direct Lease Costs are zero dollars ($0) per year and shall not
be adjusted over the Term of the Agreement, unless the Parties mutually agree to a different
amount for any Rate Period after Rate Period Ten.
7. Forecasted Allocated Lease Costs. Allocated Lease Costs are one hundred eighty thousand
dollars ($180,000) per year and shall not be adjusted over the Term of the Agreement.
D. Forecast City Fees/Reimbursements. The City Fees/Reimbursements shall be calculated in the
manner described in Section 2.E of Exhibit E1.
E. Other Adjustments. Other Adjustments shall be determined in the manner described in Section
2.F of Exhibit E1.
F. Forecasted Total Calculated Costs for the coming Rate Period shall equal the sum of Forecasted
Total Annual Cost of Operations, Forecasted Profit, Forecasted Pass-Through Costs, Forecasted
City Fees/Reimbursements, and Other Adjustments (if applicable), each determined as provided
above. Such Forecasted Total Calculated Costs shall become the Total Calculated Costs for the
coming Rate Period, for purposes of future index-based adjustments under Exhibit E1.
3. PROJECTED GROSS RECEIPTS
Projected Gross Receipts at then-current Rates shall reflect projected annual Gross Receipts from all
Customers based on then-current Rates and then-current Customer Service Levels, inclusive of all Rates
and special charges authorized under this Agreement. For the purposes of determining Customer Service
Levels for on-call services (e.g., drop-box service provided less than weekly, Bin rentals) and special
charges (e.g., push charges, lock/unlock charges), the prior twelve (12) months of billing activity (ending
in the May preceding the August 1 Rate application due date) for such services and special charges shall
be used.
Contractor shall also calculate projected Gross Receipts by sector(s) and/or material stream(s) based on
then-current Rates and then-current Customer Service Levels, inclusive of all Rates and special charges
authorized under this Agreement.
EXHIBIT E2
COST-BASED RATE ADJUSTMENT METHODOLOGY
December 3, 2020 Page E2-9 City of Cupertino/Recology Franchise Exhibit E2
4. TOTAL RATE ADJUSTMENT FACTOR
The Total Rate Adjustment Factor shall equal the Forecasted Total Calculated Costs for the coming Rate
Period divided by the projected Gross Receipts calculated in accordance with Section 3 of this Exhibit E2.
The Total Rate Adjustment Factor shall be rounded to the nearest thousandth.
5. ADJUSTMENT OF RATES
City may, as part of the Rate adjustment process for the coming Rate Period, do either or both of the
following:
A. Agree to make a City Payment in the coming Rate Period, so as to reduce the Rate increase that
would otherwise occur in that Rate Period; and/or,
B. Request a change in the relationship of individual Rates in comparison with other Rates, which
may include changing the relationship of Rates across sector(s) and/or material stream(s). Section
8.2.D (Rate Structure) shall apply to any change under this subsection 5.B. If City wishes to do
this, then City may request the Contractor to resubmit its Rate application by sector(s) and/or
material type(s) so as to enable City to address over/under-funding of particular sector(s) and/or
material type(s).
If City does either 5.A or 5.B above, then Rates shall be adjusted such that projected Gross Receipts for
the coming Rate Period at the adjusted Rates, plus any City Payments that City agrees to make for that
coming Rate Period, equal or exceed Forecasted Total Calculated Costs for the coming Rate Period.
If City does neither 5.A nor 5.B above, then each then-current Rate shall be multiplied by the Total Rate
Adjustment Factor to calculate the effective Rate for the comin g Rate Period. The adjustment to each Rate
shall be rounded to the nearest cent.
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EXHIBIT F:
PERFORMANCE STANDARDS AND LIQUIDATED
DAMAGES
EXHIBIT F
PERFORMANCE STANDARDS & LIQUIDATED DAMAGES
December 3, 2020 Page F-1 City of Cupertino/Recology Franchise Exhibit F
The City wishes to establish standards of performance under the Agreement in each of the “Performance
Areas” listed below. The City Contract Manager may monitor Contractor’s performance in each of those
areas based on the “Overall Performance Indicator” listed below for each area. In the event that
Contractor fails to meet the performance standard established for any “Overall Performance Indicator,”
the City Contract Manager may review Contractor’s performance relative to the “Specific Performance
Measures” within that performance area. In the event that the City Contract Manager determines that
Contractor has failed to meet the performance standard established for any “Specific Performance
Measure,” the City may in its sole discretion assess Liquidated Damages pursuant to Section 10.6 of the
Agreement. Liquidated Damages, if assessed, shall only be assessed for the number of events, days, or
other measure in excess of the acceptable performance level.
1. DEFINED TERMS
Exhibit F relies on the terms “Complaint,” “Service Opportunity,” and “Total Service Opportunities,” as
defined in Exhibit A.
2. PERFORMANCE AREA NO. 1: SERVICE QUALITY AND RELIABILITY
Overall Performance Indicator: Contractor’s service quality and reliability shall be considered acceptable
by the City if the total number of calls and emails (including, without limitation: Complaints, inquiries,
billing questions, service requests, and compliments) received by Contractor from Customers served
under this Agreement does not exceed one (1) per one thousand (1,000) Total Service Opportunities in
any calendar quarter. If the number exceeds this level, the City may in its sole discretion assess Liquidated
Damages for the specific performance measures identified in the following table.
Specific
Performance
Measure Definition
Acceptable
Performance
Level
Liquidated
Damage
Amount
Missed Collections Each Service Opportunity where Contractor
fails to Collect a Container from a Customer
who properly placed said Container for
Collection.
Less than one
(1) per one
thousand
(1,000) Service
Opportunities
$50/Event
Failure to Correct
Missed Collections
Each “Missed Collection” as defined above
that is not Collected pursuant to Section
4.10.3.B.
Less than (1)
per one
hundred (100)
missed
Collections
$50/Event
Failure to Return
Container to
Location of Setout
Failure to properly return empty Carts or Bins
to the Collection location, or to place Carts
upright.
Less than (1)
per one
thousand
(1,000) Service
Opportunities
$50/Event
EXHIBIT F
PERFORMANCE STANDARDS & LIQUIDATED DAMAGES
December 3, 2020 Page F-2 City of Cupertino/Recology Franchise Exhibit F
Specific
Performance
Measure Definition
Acceptable
Performance
Level
Liquidated
Damage
Amount
Failure to Clean-Up
Spillage
Pursuant to Section 5.3.C, each failure by
Contractor to clean up: (1) any items or
materials spilled during the Collection of a
Container; (2) any fluids spilled or leaked
from a Container or Collection vehicle prior
to leaving the Collection location; or, failure
by Contractor to notify the City within two
(2) hours of an observed spill.
Less than one
(1) per one
thousand
(1,000) Service
Opportunities
$100/Event
Damage to Property Each event of damage to either public or
private property as a result of Collection
activity, including without limitation Curbs,
sidewalks, landscapes, Container enclosures
and gates, signs, light fixtures, and overhead
wires and cables.
Less than one
(1) per one
thousand
(1,000) Service
Opportunities
$250/Event
Excessive Noise Each Complaint received that is related to
noise during Collection activity.
Less than one
(1) per one
thousand
(1,000) Service
Opportunities
$250/Event
Discourteous
Behavior
Each Complaint received that is related to
the discourteous behavior of Contractor’s
employees.
Less than one
(1) per one
thousand
(1,000) Service
Opportunities
$250/Event
Inaccurate Billing Each Complaint received where Contractor
billed a Customer in error. Inaccurate billing
may include, but is not limited to: (i) either
over- or under-charging of the Customer
relative to the approved maximum Rates for
services; (ii) charging the Customer a Rate
that is not the same as other Customers with
the same Service Level; (iii) charging a
Customer for an increased Service Level prior
to providing the service; and, (iv) not
charging a Customer for reduced Service
Level within seven (7) days of the date
Customer requested the change, regardless
of whether or not Contractor delivers the
appropriate Containers or modifies the
Service Level within that timeframe.
Less than one
(1) per one
thousand
(1,000) bills
issued
$100/Event
EXHIBIT F
PERFORMANCE STANDARDS & LIQUIDATED DAMAGES
December 3, 2020 Page F-3 City of Cupertino/Recology Franchise Exhibit F
3. PERFORMANCE AREA NO. 2: CUSTOMER SERVICE
Overall Performance Indicator: The level of Customer service provided by Contractor shall be considered
acceptable if the total number of Complaints received by the City regarding Contractor does not exceed
one (1) per one thousand (1,000) Total Service Opportunities in any calendar quarter. If the number
exceeds this level, the City may in its sole discretion assess Liquidated Damages for the specific
performance measures identified in the following table.
Specific
Performance
Measure Definition
Acceptable
Performance
Level
Liquidated
Damage
Amount
Failure to
Commence Service
Any failure by Contractor to deliver a
Container and begin providing Collection to a
Customer, at the Service Level requested by
said Customer, within seven (7) calendar days
of receiving such request. This may include a
new Customer receiving new service or an
existing Customer requesting a change in or
addition to existing Service Levels. This may
also include delivering Used Oil Recovery Kits
to Customers upon request.
Less than one
(1) per one
hundred (100)
service
requests
$50/Event
Failure to Replace
Container or
Remove Graffiti
Any failure by Contractor to replace or repair
a damaged Container within seven (7)
calendar days of receiving such a request
from a Customer, or any failure by Contractor
to remove graffiti from Containers within two
(2) Working Days following identification by
Contractor or notice by the City or Customer
if such graffiti includes any written or pictorial
obscenities, and otherwise within five (5)
Business Days.
No acceptable
failure level
$100/Event
Failure to Resolve
Complaint
Any failure by Contractor to resolve or
remedy a Complaint within seven (7)
calendar days of receiving such Complaint.
Less than one
(1) per one
hundred (100)
Complaints
$250/Event
EXHIBIT F
PERFORMANCE STANDARDS & LIQUIDATED DAMAGES
December 3, 2020 Page F-4 City of Cupertino/Recology Franchise Exhibit F
Specific
Performance
Measure Definition
Acceptable
Performance
Level
Liquidated
Damage
Amount
Failure to Answer
Phones; Respond to
Emails
Any failure by Contractor during normal
business hours to answer a Customer
telephone call within four rings, or to respond
to a Customer email. A call is not considered
to be answered if the Customer does not
speak with a live operator. A call is
considered to be answered if the Customer
hangs-up or abandons the call following a
hold time of less than three (3) minutes.
Less than one
(1) per one
thousand
(1,000) calls
received under
this Agreement
Less than one
(1) per one
thousand
(1,000) emails
received under
this Agreement
$50/Event
Excessive Call
Center Hold Time
Each occurrence of a call being placed “on
hold” for more than two (2) minutes.
Less than one
(1) per one
thousand
(1,000) calls
received under
this Agreement
$50/Event
Unauthorized Hours
of Operation
Each occurrence of Contractor Collecting
from Customers during unauthorized hours.
Less than one
(1) per one
thousand
(1,000) Service
Opportunities
$250/Event
4. PERFORMANCE AREA NO. 3: OUTREACH
Overall Performance Indicator: Contractor’s performance shall be considered acceptable if service meets
the requirements of Section 4.7, Exhibit C, and the following table.
Specific
Performance
Measure Definition
Acceptable
Performance
Level
Liquidated
Damage
Amount
Failure to Perform
Public Outreach
Activities
Each failure by Contractor to develop,
produce, and distribute a public outreach
document or perform a community
outreach activity in the form and manner
required under Exhibit C to this
Agreement.
No acceptable
failure level
$500/Document
or Activity
Failure to Provide
Targeted Technical
Assistance
Each individual failure to provide targeted
technical assistance to a Commercial or
Multi-Family Customer, or to a City facility
in the manner required under Exhibit C to
this Agreement.
No acceptable
failure level
$50/Customer
EXHIBIT F
PERFORMANCE STANDARDS & LIQUIDATED DAMAGES
December 3, 2020 Page F-5 City of Cupertino/Recology Franchise Exhibit F
Specific
Performance
Measure Definition
Acceptable
Performance
Level
Liquidated
Damage
Amount
Delay in Annual
Outreach Plan
Failure to submit the initial annual
outreach plan by the Commencement Date
or November 1, or to submit a revised plan
within 15 Business Days after receiving the
City Contract Manager’s comments, as
required by Exhibit C, Section 1.A.
No acceptable
failure level
$250/Day
5. PERFORMANCE AREA NO. 4: DIVERSION
Overall Performance Indicator: Contractor’s Diversion performance, as provided in Section 5.11, shall be
considered acceptable if (based on twelve (12) months of Collected Tonnage report data for any calendar
year after 2021) the Diversion percentage is less than the Tonnage Baseline Diversion Percentage. The
City may assess Liquidated Damages for the specific performance measures identified in the following
table.
Specific
Performance
Measure Definition
Acceptable
Performance
Level
Liquidated
Damage
Amount
Failure to Maintain
Contractor’s
Minimum Required
Diversion Level by
Weight
Failure to meet Tonnage BaselineDiversion
Percentage specified in Section 5.11.B in
any calendar year after 2021.
No acceptable
failure level
$100/Ton of
material that
would have
needed to be
Diverted instead
of landfilled to
meet the
requirement for
the given
calendar year
6. PERFORMANCE AREA NO. 5: FACILITIES
Overall Performance Indicator: Contractor’s performance relative to facilities shall be considered
acceptable when one hundred percent (100%) of all material types Collected by Contractor shall be
Delivered to the appropriate Approved Facility (including Designated Facility(ies)) as required under
Sections 4.1, 4.2 and 4.3 of this Agreement. If Contractor fails to meet this level of performance, the City
may assess Liquidated Damages for the specific performance measures identified in the following table.
EXHIBIT F
PERFORMANCE STANDARDS & LIQUIDATED DAMAGES
December 3, 2020 Page F-6 City of Cupertino/Recology Franchise Exhibit F
Specific
Performance
Measure Definition
Acceptable
Performance
Level
Liquidated
Damage
Amount
Delivery to Non-
Approved Facility
Each individual occurrence of delivering
materials to a facility other than the
Approved Facility designated for each
material type under Sections 4.1, 4.2, and 4.3
of this Agreement.
No
acceptable
failure level
$100/Ton
Disposal of Material
Targeted for
Diversion
Each individual occurrence of Disposal rather
than Processing of Recyclable Materials,
Organic Materials, or C&D set out for
Collection by the Customer, unless the
contamination level in the Container exceeds
the acceptable contamination level specified
in this Agreement.
No
acceptable
failure level
$500/Ton
Mixing Material
Types During
Collection
Each individual Container that is Collected by
Contractor in a vehicle intended or
designated for the purpose of Collecting a
different material type (e.g., Recyclable
Materials Collected in Solid Waste vehicle,
Solid Waste Collected in Organic Materials
vehicle, etc.). This item does not apply to
collection in a Solid Waste vehicle of
Containers with a contamination level that
exceeds the acceptable contamination level
specified in this Agreement.
No
acceptable
failure level
$100/Container
7. PERFORMANCE AREA NO. 6: REPORTING
Overall Performance Indicator: Contractor’s reporting shall be considered acceptable if Reports required
under Exhibit D and record requests allowed under Article 6 to this Agreement are received, complete,
and accurate within seven (7) calendar days after the date due or date requested. If Contractor fails to
meet this level of performance, the City may in its sole discretion assess Liquidated Damages for the
specific performance measures identified in the following table.
Specific
Performance
Measure Definition
Acceptable
Performance
Level
Liquidated
Damage
Amount
Late Report Each occurrence of a report, as required
under Exhibit D to this Agreement, being
submitted after the due date. Reports shall
be considered late until they are submitted
in a complete and accurate format.
Less than
seven (7)
calendar days
after report
due date
$250/Day
EXHIBIT F
PERFORMANCE STANDARDS & LIQUIDATED DAMAGES
December 3, 2020 Page F-7 City of Cupertino/Recology Franchise Exhibit F
Specific
Performance
Measure Definition
Acceptable
Performance
Level
Liquidated
Damage
Amount
Failure to Maintain
or Provide Access
to Records
Each occurrence of the City Contract
Manager requesting information required
to be maintained by Contractor where
Contractor fails to provide such
information.
Less than
seven (7)
calendar days
after due date
$500/Event
Misleading/
Inaccurate
Reporting
Each occurrence of Contractor providing
materially or intentionally misleading or
inaccurate information or reporting to the
City under or in regard to this Agreement.
Typographical, cell reference,
mathematical, and/or logic errors shall not
be considered legitimate excuses from this
requirement, nor shall ignorance.
No acceptable
failure level
$500/Event
8. PERFORMANCE AREA NO. 7: SB 1383
Item
Specific Performance
Measure Definition
Acceptable
Performance
Level
Liquidated Damage
Amount
1. Failure to Provide
Recyclable Material
and Organic Material
Collection Services to
every Customer
Exceptions noted
below table
For each occurrence of
failing to provide Customers
with the three- Container
system, including Recyclable
Material and Organic
Materials. This item shall not
apply to missed pickups,
which is covered under
Performance Area No. 1.
No acceptable
failure level
$500/Customer
2. Failure to Conduct
Route reviews and
contamination
monitoring
Failure to conduct Route
reviews as required by
Section 4.13.1 of this
Agreement.
No acceptable
failure level
$150/Route review
3. Failure to Issue
contamination notices,
if permitted by City
Failure to issue
contamination notices as
required by Section 4.13.1 of
this Agreement.
No acceptable
failure level
$500/Route/Day
EXHIBIT F
PERFORMANCE STANDARDS & LIQUIDATED DAMAGES
December 3, 2020 Page F-8 City of Cupertino/Recology Franchise Exhibit F
Item
Specific Performance
Measure Definition
Acceptable
Performance
Level
Liquidated Damage
Amount
4. Commingling with Non-
City Materials
Commingling of materials
Collected inside and outside
the City during Collection,
except as provided in Section
5.3.F and except for service
to the Creston Drive area
until the area is fully
annexed.
No acceptable
failure level
$1,000/Event
5. Failure to Comply with
Container Labeling and
Colors
For each occurrence of
Contractor’s failure to
comply with Container
labeling and color
requirements pursuant to
Section 5.6 of this
Agreement, and not
corrected within two (2)
Business Days of notice by
City.
No acceptable
failure level
$50 / Container /
occurrence
6. Failure to Conduct
Compliance Tasks
For each failure to conduct
any compliance review, or
cooperate in conducting
waste evaluations pursuant
to Sections 4.13 and 4.14,
and/or failure to conduct any
other SB 1383-related
inspection required by this
Agreement.
No acceptable
failure level
$250 / occurrence.
7. Failure to Conduct
Follow-Up Inspections
For each failure to conduct
an SB 1383 noncompliance
complaint investigation as
required by Section 4.14.C of
this Agreement.
No acceptable
failure level
$250 / occurrence.
The City shall not assess Liquidated Damages for Exhibit F.8, item 1, above, under the following
circumstances:
A. City has granted the Customer a waiver pursuant to Section 4.12.2 of this Agreement;
B. Contractor documents that Customer is compliant with the Cupertino Municipal Code and 14 CCR,
Division 7, Chapter 12, Article 7;
EXHIBIT F
PERFORMANCE STANDARDS & LIQUIDATED DAMAGES
December 3, 2020 Page F-9 City of Cupertino/Recology Franchise Exhibit F
C. Contractor documents to the City that the Customer is being provided Recyclable Material and/or
Organic Material Collection services from a City-permitted, or non-exclusively franchised, recycler
or discarded materials service provider;
D. Contractor documents that Customer is sharing Recyclable Materials and/or Organic Materials
Collection services with another Customer in a manner approved by the City;
E. The City has failed to adopt a mandatory Recyclable Materials and Organic Materials ordinance;
F. The Customer does not subscribe for service; or,
G. The Customer refuses to accept the service or the required Containers.
9. PERFORMANCE AREA NO. 8: COMPLIANT CONTAINERS
Overall Performance Indicator: Contractor’s Container replacement services shall be considered
acceptable by the City if Contractor replaces Containers in accordance with Section 5.6. If Contractor fails
to meet this level of performance, the City may in its sole discretion assess Liquidated Damages for the
specific performance measures identified in the following table.
Specific
Performance
Measure
Definition
Acceptable
Performance
Level
Liquidated
Damage
Amount
Failure to Correct
Non-Conforming
Carts
Each occurrence after December 31, 2021
in which a Non-Conforming Cart (as defined
in Exhibit A and Section 5.6) is still in
service.
No acceptable
performance
level
$250/Non-
Conforming
Cart not
exchanged
within two (2)
Business Days
after notice by
City for the first
fifty (50) Non-
Conforming
Carts identified
by City;
thereafter,
$250/Non-
Conforming
Cart.
By placing designee’s initials at the places provided, each Party specifically confirms the accuracy of the
statements made above and the fact that each Party has had ample opportunity to consult with legal
counsel and obtain an explanation of Liquidated Damage provisions at the time that the Agreement was
made.
Contractor City
Initial Here:_________ Initial Here: _________
This page intentionally left blank
EXHIBIT G:
EXCERPTS OF CONTRACTOR’S PROPOSAL
EXHIBIT G1:
(;&(53762)TECHNICAL PROPOSAL
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Identify all proposed subcontractors and describe the scope of work for which each will be responsible.
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ADDENDUM 1 August 19, 2020
ADDENDUM 1
City of Cupertino
Agenda, Responses to Recology Questions from
Pre-proposal Conference
August 14th, 2020
11:00AM – 12:00 PM
Attendees: Roger Lee, Ursula Syrova – City of Cupertino
John Zirelli, Carl Mennie, Mario Puccinelli - Recology
Rob Hilton, Danielle Derby - HF&H
Location: Via Microsoft Teams
1. Introductions
2. Negotiation Process Overview
3. Key City Objectives for Process
4. Recology Questions re: Agreement / Cost Forms
1) How will our cost forms and proposal that are marked confidential be handled in the event of an RFP? Will
the city and HF&H sign a non-disclosure agreement?
Refer to page 6 of the RFP with carefully crafted language stating the City’s response to confident iality.
City cannot sign the NDA due to necessity for transparency to public.
2) Pg. 11 of Proposal C&D Processing/transfer-“Include a per/hour transport cost”- we use a sub-contractor
for all material transported out of the Rogers Ave Transfer Station-Keith Day Trucking. They cannot
provide a cost per hour transport unless they know the location of a facility and operating hours.
Recology will prepare this based on use of Zanker and MRWMD.
3) Pg. 12 of the Proposal for sort audits has a “city staff operator using Recology equipment”-Operator will
need to be a Recology Employee for liability reasons
Typo – would not be handled by City Staff, but Recology employees at the DIRECTION of City staff.
4) Exhibit B3-Commercial MSW services has service frequency at a maximum of 3 times/week. Is this a typo?
Yes. It should be up to 6 times per week.
Rate Review Questions
5) What is the ECI Series ID#?
CIU201S000000000A
6) It looks like there is a set flat amount for depreciation for the 10yr term, is there any flexibility in this if we
propose purchasing trucks over several years? Meaning a predetermined depreciation schedule that
reflects the timing of the purchases?
Recology to provide a schedule of all purchases during the length of the contract. HF&H will annualize and
create a flat annualized depreciation amount based on that schedule for discussion between City and
Recology. The Agreement will need to be clear that there is no post-agreement liability to the City or
ratepayers for the remaining book value of assets.
7) I want to clarify that a reviewed financial statement can be used for both Exhibit E2 and Exhibit D Section
3(D).
ADDENDUM 1 August 19, 2020
City Issues Addenda, As Needed
Recology Submits Proposal *
Proposal Evaluation
Support for Council Study Session
Negotiations
Council Award of Franchise *
Execute Agreement (February 1, 2021)
*Milestones
Proposal Evaluation,
Negotiations
(SO5)
Nov-20
Timeline for Sole-Source Negotiation Process
City of Cupertino Aug-20 Sep-20 Oct-20
Yes
8) Below is a time table below that would be used for E2 with the current language. Would the City consider
reviewed financials that coincide with a rate year (Feb to Jan)?
Yes.
5. Follow-up / Next Steps
Timeline for Sole-Source Negotiations Process
Attachment 2: Zero Waste Event Program & Tabling Services
1
ZZero Waste Event Program
Technical Assistance for Zero Waste Events
Recology believes special events create an opportunity to connect with the community and model Zero
Waste best practices. To help the City’s special events increase diversion and minimize waste, Recology
will conduct a Zero Waste Event Program, featuring special event diversion services tailored to the event
type.
The large annual festivals in the City that will receive these services are:
x Holi Festival
x Cherry Blossom Festival
x Diwali Festival
x World Journal
x 4th of July Celebration
x Kids Fun Festival
x Chamber and Rotary events such as the Fall Festival and annual Crab Feed
Large festivals require technical assistance from the very beginning to help organizers understand Zero
Waste event requirements. Recology has experience with large events and has established relationships
with regular local organizers.
In partnership with City staff, Recology will develop a Zero Waste Guide for Events for event organizers.
Content may include:
x Applicable local laws: City requirements such as the Polystyrene Foam Food Container
Ordinance and the Reusable Bag Ordinance.
x Ordering Service: Steps for ordering special event trash, recycling, and compost hauling service
in addition to signage and event containers through Recology.
x Zero Waste Sorting Stations: Color-coded sorting stations where customers can properly sort
and dispose of their material, similar to the station depicted here. Recology will also provide
suggestions on where to locate event sorting stations to optimize diversion, and will outline
requirements for proper station set up
(such as colocation of containers and
proper signage).
x Material Monitoring, Sorting, and Porting:
Best practices for event volunteers and/or
workers to monitor sort stations, sort out
contamination, and port material to
collection containers.
x Zero Waste Purchasing: Information on
how to plan food ware purchasing and
distribution to prevent waste, and
suggestions for encouraging reusable
products.
2
x Working with Vendors: Recommendations for educating vendors and integrating Zero Waste
requirements into vendor contracts.
x Post Event: Requirements for leaving event area clean, collection containers locked, and packing
up zero waste sorting stations.
In addition to the published general guide, large events will receive tailored support from a Waste Zero
Specialist. Recology recommends the following general process:
Prior to the event
x Proactively reach out to major event organizers to share updated information, such as the Zero
Waste Guide for Events.
x If required by the City, assist event organizers with creating a Zero Waste Event Plan, which they
would submit to City staff. A Zero Waste Event Plan may include:
o Requested amount of compost, recycling and trash service
o Requested amount of waste sorting stations
o Event map with planned
location of waste sorting
stations
o Plan for who will be setting up
waste sorting stations day-of
o Plan for who will be monitoring
waste sorting stations
throughout the event and
addressing contamination
o Plan for who will be changing
out waste sorting station bags
and porting material to the
compost, recycling and trash
collection containers
o Contact information for the person(s) that will be managing the recycling, compost and
trash day-of
x If applicable, Discuss Zero Waste Event Plan at the pre-event meeting with City staff and event
organizers, follow up with any outstanding issues.
x Prepare Zero Waste sorting station materials.
x Provide event organizer with a sorting station guide to share with volunteers/workers, as
depicted in the example here:
Day of the Event
x Connect with event organizer and if possible, provide training to the waste sorting/porting
team.
x Walk the event to verify that sorting stations are set up and being used appropriately.
x Communicate any urgent issues to the day-of contact.
3
AAfter the Event
x Check the contents of each collection container and take pictures.
x Document how full each container was and if there was contamination.
x Verify that collection containers were left locked, the area is clean, and sorting station materials
are packed up.
x Communicate feedback to event organizer.
x Report volume of each material stream to City staff, including tonnage if the collection container
was a debris box. Report any notable contamination issues.
x Document notes to reference when planning for the same event next year.
Special Event Tabling Services
Cupertino’s large festivals are balanced out with smaller community events, often organized by the City.
These events do not require as much technical assistance, since they are smaller in scale, do not require
special event collection services, and are managed by experienced City staff.
Recology proposes that the Waste Zero Team outreach at these events continues to focus on connecting
directly with community residents through event tabling. If more technical assistance is requested,
Recology can also provide that.
The Waste Zero Team will host an educational table at the
following regular events, and will be available to table at additional
events as requested by City staff.
The educational table will include items such as:
x Up to date information about programs and services for
single family and multi-family residents, in multiple
languages whenever possible.
x Printed informational flyers and brochures (paired with
encouragement to save paper and view the materials
online!)
x Information about City-wide zero waste goals and progress.
x Giveaway items that are either made with recycled
materials (such as recycled money pencils) or promote a
Zero Waste concept (such as a reusable utensil set.)
x Games designed to educate event attendees on proper sorting.
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Type Route Route # Truck Number Year Replacement Year
FEL Com RYC CB2 11155 2001 2022
FEL MSW 95 11196 2006 2022
Pick Up Supervisor 6258 2005 2022
ASL RES MSW 8 13157 2005 2023
ASL RES MSW 13 13158 2005 2023
ASL RES MSW 9 13163 2006 2023
S/L COM RYC UN 7 14575 2013* 2023
ASL RES RYC CR2 13155 2005 2024
ASL RES RYC CR3 13145 2005 2024
ASL RES ORG CY1 13146 2005 2024
ASL RES ORG CY3 13147 2005 2025
FEL COM RYC CB1 11239 2009 2025
RO ROLL OFF 103 12148 2000 2025
ASL RES ORG CY2 13341 2014* 2026
RO ROLL OFF 101 12290 2010 2026
REL On-Call Clean -Ups 10199 10199 2002 2026
ASL RES RYC CR4 13371 2015* 2027
ASL RES MSW 6 13410 2017* 2027
ASL RES RYC CR1 13409 2017* 2028
RO RO 102 12406 2018 2028
FEL COM MSW 93 11446 2018* 2029
FEL COM MSW 94 11523 2019* 2030
FEL COM ORG 777 11552 2020* 2031
Type Route Route # Truck Number Year Replacement Year
Container Truck Bin Exchange N/A 9045 2008 2020
Flat Bed Bulky Items N/A 5143 2002 2020
Attachment 8: Cupertino Vehicle Replacement Schedule
Support Vehicles
* Denotes CNG fuel Type
Best Management Practices
2020
jason proctor
[Company name]
9/1/2020
eeeeeeeeeeneeeeneeeen
2020
9/1/2020
Organic Cart Washing Program
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EXHIBIT G2:
COST BASIS FOR PROPOSAL
Form 1RecologyInformation CityofCupertinoFutureServices
ProposerName:Recology
NotetoRecology:Inputdatainyellowshadedareasonly.
A.PrimaryContactInformation
1. Name JohnZirelli
2. Title GeneralManager
3. Phone (408)368Ͳ1776
4. Fax
5. EͲmail jzirelli@recology.com
B.SupportFacilities
1.Addressofcollectionvehicleparking,maintenance,
washing,androutestaffparkingfacility(ies)1675RogersAve,SanJose,CA
2. Addressofadministrativeoffice
1675RogersAve,SanJose,CA
3. Addressofbillingoffice
1675RogersAve,SanJose,CA
4. Addressofcustomerserviceoffice
1675RogersAve,SanJose,CA
C.VehicleManufacturerandSpecifications(BodyCapacity,GVWR,LoadCapacity)
1. ResidentialCollectionVehicles Autocar,28ydHeil
2. CommercialCollectionVehicles Autocar,40ydHeil
3. DropBoxVehicles Autocar,NorCalHoist
D.ContainerManufacturer,SizesOffered,andSpecifications
1. Carts Toter(24,32,64,96)
2. Bins ConsolidatedFabricators(1,1.5,2,3,4,6,8)
3. DropBoxes ConsolidatedFabricators(8,16,20,26,30,40)
E.RecyclableMaterialsProcessingandHandling
1. Nameofprocessingsite GreenwasteRecoveryͲCharlesStreet
2. Owner'sname GreenwasteRecovery,Inc.
3. Operator'sname GreenwasteRecovery,Inc.
4. Addressofprocessingsite 625CharlesSt,SanJose,CA
5. Haulingmethod(e.g.directhaul,transferhaul,Pod
haul)DirectHaul
6. Nameandaddressoftransferlocation(ifapplicable)
F.ReusableMaterialsHandling
1. Nameofprocessingsite
HopeServices
2. Owner'sname
HopeServices
3. Operator'sname
HopeServices
4. Addressofprocessingsite
460E.MiddlefieldRoad,MountainView,CA
5. Haulingmethod(e.g.directhaul,transferhaul,Pod
haul)Transfer
6. Nameandaddressoftransferlocation(ifapplicable)
1675RogersAve,SanJose,CA
G.OrganicsProcessingandHandlingFacility#1
1. Nameofprocessingsite RecologySouthValleyOrganics
2. Owner'sname Recology,Inc.
3. Operator'sname RecologySouthValleyOrganics
4. Addressofprocessingsite 3675PachecoPassHwy,Gilroy,CA
5. Haulingmethod(e.g.directhaul,transferhaul,Pod
haul)Transfer
6. Nameandaddressoftransferlocation(ifapplicable)1675RogersAve,SanJose,CA
H.OrganicsProcessingandHandlingFacility#2
1. Nameofprocessingsite RecologyBlossomValleyOrganicsͲNorth
2. Owner'sname Recology,Inc.
3. Operator'sname RecologyBlossomValleyOrganicsͲNorth
4. Addressofprocessingsite 3909GafferyRd,Vernalis,CA
5. Haulingmethod(e.g.directhaul,transferhaul,Pod
haul)Transfer
6. Nameandaddressoftransferlocation(ifapplicable)1675RogersAve,SanJose,CA
I.OtherProcessingandHandling(Optional)*
1. Nameofprocessingsite
2. Owner'sname
3. Operator'sname
4. Addressofprocessingsite
5. Haulingmethod(e.g.directhaul,transferhaul,Pod
haul)
6. Nameandaddressoftransferlocation(ifapplicable)
*InsertRowsasNeededtoReflectAdditionalFacilityand/orSubcontractorInformation.
Page 1 of 22
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r
i
a
l
s
S
o
l
i
d
Wa
s
t
e
Re
c
y
c
l
a
b
l
e
Ma
t
e
r
i
a
l
s
Or
g
a
n
i
c
Ma
t
e
r
i
a
l
s
Al
l
Ma
t
e
r
i
a
l
Ty
p
e
s
Bu
l
k
y
It
e
m
s
/
Re
u
s
a
b
l
e
Ma
t
e
r
i
a
l
s
Ot
h
e
r
(S
p
e
c
i
f
y
)
TO
T
A
L
1
Ac
c
o
u
n
t
In
f
o
r
m
a
t
i
o
n
#of
we
e
k
l
y
ac
c
o
u
n
t
s
(c
u
s
t
o
m
e
r
s
)
13
,
9
7
2
13
,
9
7
2
13
,
9
7
2
45
3
99
8
3
7
1
5
4
2
4
2
2
1
2
0
La
b
o
r
In
f
o
r
m
a
t
i
o
n
2
#of
re
g
u
l
a
r
ro
u
t
e
pe
r
s
o
n
n
e
l
3.
8
3
.
9
3
.
0
0
.
2
0
.
8
0
.
0
4
3
2
.
3
1
.
7
0
.
9
2
.
1
1
.
0
1
9
.
6
3
La
b
o
r
ho
u
r
s
/
d
a
y
/
p
e
r
s
o
n
8.
0
8
.
4
8
.
1
8
.
0
8
.
4
8
.
1
9
.
1
8
.
6
8
.
0
8
.
0
8
.
0
4T
o
t
a
l
la
b
o
r
ho
u
r
s
/
y
e
a
r
7,
9
2
5
8
,
4
7
4
6
,
2
5
5
3
3
3
1
,
6
6
0
9
1
5
,
3
4
7
3,
7
7
9
1
,
8
9
5
4
,
4
5
1
2
,
0
8
0
0
4
2
,
2
8
9
Ro
u
t
e
In
f
o
r
m
a
t
i
o
n
#of
ro
u
t
e
s
pe
r
5
We
e
k
d
a
y
3.
8
1
3
.
8
8
2
.
9
7
0
.
1
6
0
.
7
6
0
.
0
4
3
2
.
2
6
1
.
6
9
0
.
9
1
2
.
1
4
1
.
0
0
1
9
.
6
6
Sa
t
u
r
d
a
y
1.
4
0
.
3
0
.
3
0
.
7
1
2
.
7
7
Su
n
d
a
y
0.
0
#of
pe
r
s
o
n
s
pe
r
ro
u
t
e
pe
r
8
We
e
k
d
a
y
1.
0
1
.
0
1
.
0
1
.
0
1
.
0
1
.
0
1
.
0
1
.
0
1
.
0
1
.
0
1
.
0
9
Sa
t
u
r
d
a
y
1.
0
1
.
0
1
.
0
1
.
0
10
Su
n
d
a
y
#of
ro
u
t
e
ho
u
r
s
/
d
a
y
/
r
o
u
t
e
pe
r
11
We
e
k
d
a
y
8.
0
8
.
4
8
.
1
8
.
0
8
.
4
8
.
1
9
.
1
8
.
6
8
.
0
8
.
0
8
.
0
12
Sa
t
u
r
d
a
y
8.
0
8
.
0
8
.
0
8
.
0
13
Su
n
d
a
y
#of
ro
u
t
e
ho
u
r
s
pe
r
ye
a
r
pe
r
:
14
We
e
k
d
a
y
7,
9
2
5
8
,
4
7
4
6
,
2
5
5
3
3
3
1
,
6
6
0
9
1
5
,
3
4
7
3,
7
7
9
1
,
8
9
5
4
,
4
5
1
2
,
0
8
0
4
2
,
2
8
9
15
Sa
t
u
r
d
a
y
58
2
1
2
5
1
2
5
2
9
5
1
,
1
2
7
16
Su
n
d
a
y
0
17
To
t
a
l
Ro
u
t
e
Ho
u
r
s
pe
r
Ye
a
r
(a
l
l
ro
u
t
e
s
)
7,
9
2
5
8
,
4
7
4
6
,
2
5
5
3
3
3
1
,
6
6
0
9
1
5
,
9
3
0
3,
9
0
4
2
,
0
2
0
4
,
7
4
7
2
,
0
8
0
0
4
3
,
4
1
6
18
#of
FT
E
ro
u
t
e
s
3.
8
1
4
.
0
7
3
.
0
1
0
.
1
6
0
.
8
0
0
.
0
4
2
.
8
5
1
.
8
8
0
.
9
7
2
.
2
8
1
.
0
0
0
.
0
0
2
0
.
8
7
19
To
t
a
l
#of
ca
r
t
se
t
o
u
t
s
pe
r
da
y
fo
r
al
l
ro
u
t
e
s
2,
4
3
1
2
,
3
4
7
2
,
0
6
8
20
#of
ca
r
t
se
t
o
u
t
s
/
d
a
y
/
F
T
E
ro
u
t
e
63
8
5
7
6
6
8
8
21
#of
ca
r
t
se
t
o
u
t
s
pe
r
we
e
k
fo
r
al
l
ro
u
t
e
s
12
,
1
5
6
1
1
,
7
3
6
1
0
,
3
3
9
22
#of
ho
u
s
e
h
o
l
d
dr
i
v
e
Ͳby
s
pe
r
wk
fo
r
al
l
ro
u
t
e
s
13
,
9
7
2
1
3
,
9
7
2
1
3
,
9
7
2
23
Se
t
ou
t
ra
t
e
(%
)
87
%
8
4
%
7
4
%
24
#of
li
f
t
s
or
pu
l
l
s
pe
r
we
e
k
fo
r
al
l
ro
u
t
e
s
47
1
1
,
5
5
4
3
7
5
9
1
5
9
2
2
2
2
5
5
8
9
5
25
#of
li
f
t
s
or
pu
l
l
s
pe
r
ye
a
r
fo
r
al
l
ro
u
t
e
s
24
,
4
9
2
8
0
,
8
0
8
1
9
,
5
0
0
4
7
,
5
8
0
47
,
9
4
4
1
1
,
7
0
0
3
,
0
0
2
4
,
9
4
0
0
26
#of
li
f
t
s
or
pu
l
l
s
pe
r
ro
u
t
e
ho
u
r
73
.
6
4
8
.
6
8
2
1
5
.
3
3
8
.
0
2
1
2
.
2
8
5
.
7
9
0
.
6
3
2
.
3
8
0
.
0
0
Ve
h
i
c
l
e
In
f
o
r
m
a
t
i
o
n
27
#of
re
g
u
l
a
r
co
l
l
e
c
t
i
o
n
ve
h
i
c
l
e
s
(f
r
o
m
Fo
r
m
4)
0.0
0
.
0
0
.
0
0
.
0
0
.
0
0
.
0
0
.
0
0
.
0
0
.
0
0
.
0
0
.
0
0
.
0
0
.
0
29
#of
sp
a
r
e
co
l
l
e
c
t
i
o
n
ve
h
i
c
l
e
s
(f
r
o
m
Fo
r
m
4)
0.0
0
.
0
0
.
0
0
.
0
0
.
0
0
.
0
0
.
0
0
.
0
0
.
0
0
.
0
0
.
0
0
.
0
0
.
0
30
T
o
t
a
l
#of
co
l
l
e
c
t
i
o
n
ve
h
i
c
l
e
s
0.0
0
.
0
0
.
0
0
.
0
0
.
0
0
.
0
0
.
0
0
.
0
0
.
0
0
.
0
0
.
0
0
.
0
0
.
0
To
n
n
a
g
e
In
f
o
r
m
a
t
i
o
n
(a
n
n
u
a
l
)
31
So
l
i
d
Wa
s
t
e
Co
l
l
e
c
t
e
d
7,
5
2
0
3
6
0
6
,
1
5
0
3
,
2
5
0
1
7
,
2
8
0
.
0
32
Re
c
y
c
l
a
b
l
e
Ma
t
e
r
i
a
l
s
Co
l
l
e
c
t
e
d
4,
8
9
0
3
8
0
2
,
2
0
0
4
8
0
7
,
9
5
0
.
0
33
Or
g
a
n
i
c
Ma
t
e
r
i
a
l
s
Co
l
l
e
c
t
e
d
Fa
c
i
l
l
i
t
y
#1
8,
0
1
0
1
1
6
1
,
0
0
0
9
,
1
2
6
.
0
34
Or
g
a
n
i
c
Ma
t
e
r
i
a
l
s
Co
l
l
e
c
t
e
d
Fa
c
i
l
l
i
t
y
#2
0
2,
6
0
0
2
,
5
0
0
5
,
1
0
0
.
0
35
C&
D
2,
5
0
0
2
,
5
0
0
.
0
36
HH
W
0.
0
37
Bu
l
k
y
It
e
m
s
/
R
e
u
s
a
b
l
e
Ma
t
e
r
i
a
l
s
Co
l
l
e
c
t
e
d
0.
0
38
Ot
h
e
r
Ma
t
e
r
i
a
l
s
Co
l
l
e
c
t
e
d
(S
p
e
c
i
f
y
)
0.
0
39
To
t
a
l
Co
l
l
e
c
t
e
d
7,
5
2
0
4
,
8
9
0
8
,
0
1
0
3
6
0
3
8
0
1
1
6
6
,
1
5
0
2,
2
0
0
2
,
6
0
0
9
,
7
3
0
0
0
4
1
,
9
5
6
40
Pr
o
c
e
s
s
i
n
g
re
s
i
d
u
e
di
s
p
o
s
e
d
0.
0
41
N
e
t
Di
v
e
r
t
e
d
(L
i
n
e
32
+33
+34
+35
+36
+37
+38
Ͳ
40
)
0
4
,
8
9
0
8
,
0
1
0
0
3
8
0
1
1
6
0
2
,
2
0
0
2
,
6
0
0
6
,
4
8
0
0
0
2
4
,
6
7
6
58
.
8
%
Re
s
i
d
e
n
t
i
a
l
Ca
r
t
Se
r
v
i
c
e
(F
o
r
m
6A
)
RE
P
O
R
T
FO
R
12
ͲMO
N
T
H
PE
R
I
O
D
Fr
o
m
Fe
b
r
u
a
r
y
1,
20
2
1
to
Ja
n
u
a
r
y
31
,
20
2
2
Co
m
m
e
r
c
i
a
l
Ca
r
t
Se
r
v
i
c
e
(F
o
r
m
6B
)
C
o
m
m
e
r
c
i
a
l
Bi
n
Se
r
v
i
c
e
(F
o
r
m
6C
)
O
t
h
e
r
(F
o
r
m
6E
)
P
a
g
e
2
o
f
2
2
Fo
r
m
2
Op
e
r
a
t
i
n
g
St
a
t
i
s
t
i
c
s
Ci
t
y
of
Cu
p
e
r
t
i
n
o
Fu
t
u
r
e
Se
r
v
i
c
e
s
Pr
o
p
o
s
e
r
Na
m
e
:
Re
c
o
l
o
g
y
No
t
e
s
fo
r
Fo
r
m
2:
Pu
l
l
s
=pu
l
l
an
d
re
t
u
r
n
et
c
.
Fu
l
l
Ti
m
e
Eq
u
i
v
a
l
e
n
t
(F
T
E
)
=40
ho
u
r
s
pe
r
we
e
k
,
2,
0
8
0
ho
u
r
s
pe
r
ye
a
r
Li
n
e
27
Ͳ
No
in
p
u
t
ne
e
d
e
d
by
Re
c
o
l
o
g
y
,
da
t
a
li
n
k
e
d
to
Fo
r
m
4Ͳ
Ca
p
i
t
a
l
.
Da
t
a
sh
o
u
l
d
re
f
l
e
c
t
th
e
as
s
u
m
p
t
i
o
n
s
us
e
d
fo
r
th
e
ba
s
i
s
of
th
e
co
s
t
s
pr
o
p
o
s
e
d
in
Fo
r
m
s
6A
Ͳ
6E
.
Li
n
e
28
Ͳ
No
in
p
u
t
ne
e
d
e
d
by
Re
c
o
l
o
g
y
,
da
t
a
li
n
k
e
d
to
Fo
r
m
4Ͳ
Ca
p
i
t
a
l
.
Da
t
a
sh
o
u
l
d
re
f
l
e
c
t
th
e
as
s
u
m
p
t
i
o
n
s
us
e
d
fo
r
th
e
ba
s
i
s
of
th
e
co
s
t
s
pr
o
p
o
s
e
d
in
Fo
r
m
s
6A
Ͳ
6E
.
Li
n
e
29
Ͳ
No
in
p
u
t
ne
e
d
e
d
by
Re
c
o
l
o
g
y
,
da
t
a
li
n
k
e
d
to
Fo
r
m
4Ͳ
Ca
p
i
t
a
l
.
Da
t
a
sh
o
u
l
d
re
f
l
e
c
t
th
e
as
s
u
m
p
t
i
o
n
s
us
e
d
fo
r
th
e
ba
s
i
s
of
th
e
co
s
t
s
pr
o
p
o
s
e
d
in
Fo
r
m
s
6A
Ͳ
6E
.
Li
n
e
41
Ͳ
Sh
o
u
l
d
eq
u
a
l
Li
n
e
32
+Li
n
e
33
+Li
n
e
34
+Li
n
e
35
+Li
n
e
36
+Li
n
e
37
+Li
n
e
38
Ͳ
Li
n
e
40
Li
n
e
30
Ͳ
Sh
o
u
l
d
eq
u
a
l
Li
n
e
27
+Li
n
e
28
+Li
n
e
29
Li
n
e
s
31
Ͳ
38
Ͳ
Da
t
a
to
be
in
p
u
t
by
Re
c
o
l
o
g
y
.
Da
t
a
sh
o
u
l
d
re
f
l
e
c
t
th
e
as
s
u
m
p
t
i
o
n
s
us
e
d
fo
r
th
e
ba
s
i
s
of
th
e
co
s
t
s
pr
o
p
o
s
e
d
in
Fo
r
m
s
6A
Ͳ
6E
.
Li
n
e
39
Ͳ
Sh
o
u
l
d
eq
u
a
l
th
e
su
m
of
Li
n
e
31
+Li
n
e
32
+Li
n
e
33
+Li
n
e
34
+Li
n
e
3
5
+Li
n
e
36
+Li
n
e
37
+Li
n
e
38
Li
n
e
40
Ͳ
Da
t
a
to
be
in
p
u
t
by
Re
c
o
l
o
g
y
.
Da
t
a
sh
o
u
l
d
re
f
l
e
c
t
th
e
as
s
u
m
p
t
i
o
n
s
us
e
d
fo
r
th
e
ba
s
i
s
of
th
e
co
s
t
s
pr
o
p
o
s
e
d
in
Fo
r
m
s
6A
Ͳ
6E
.
Li
n
e
23
Ͳ
Sh
o
u
l
d
eq
u
a
l
Li
n
e
21
/Li
n
e
22
Li
n
e
24
Ͳ
Da
t
a
to
be
in
p
u
t
by
Re
c
o
l
o
g
y
.
Da
t
a
sh
o
u
l
d
re
f
l
e
c
t
th
e
as
s
u
m
p
t
i
o
n
s
us
e
d
fo
r
th
e
ba
s
i
s
of
th
e
co
s
t
s
pr
o
p
o
s
e
d
in
Fo
r
m
s
6B
Ͳ
6E
.
Li
n
e
25
Ͳ
Da
t
a
to
be
in
p
u
t
by
Re
c
o
l
o
g
y
an
d
sh
o
u
l
d
eq
u
a
l
Li
n
e
24
*52
we
e
k
s
.
Da
t
a
sh
o
u
l
d
re
f
l
e
c
t
th
e
as
s
u
m
p
t
i
o
n
s
us
e
d
fo
r
th
e
ba
s
i
s
of
th
e
co
s
t
s
pr
o
p
o
s
e
d
in
Fo
r
m
s
6B
Ͳ
6E
.
Li
n
e
26
Ͳ
Sh
o
u
l
d
eq
u
a
l
Li
n
e
25
/
Li
n
e
17
Li
n
e
19
Ͳ
Da
t
a
to
be
in
p
u
t
by
Re
c
o
l
o
g
y
.
Da
t
a
sh
o
u
l
d
re
f
l
e
c
t
th
e
as
s
u
m
p
t
i
o
n
s
us
e
d
fo
r
th
e
ba
s
i
s
of
th
e
co
s
t
s
pr
o
p
o
s
e
d
in
Fo
r
m
6A
Li
n
e
20
Ͳ
Sh
o
u
l
d
eq
u
a
l
Li
n
e
19
/Li
n
e
18
Li
n
e
21
Ͳ
Sh
o
u
l
d
eq
u
a
l
Li
n
e
19
*5da
y
s
Li
n
e
22
Ͳ
Da
t
a
to
be
in
p
u
t
by
Re
c
o
l
o
g
y
.
Da
t
a
sh
o
u
l
d
re
f
l
e
c
t
th
e
as
s
u
m
p
t
i
o
n
s
us
e
d
fo
r
th
e
ba
s
i
s
of
th
e
co
s
t
s
pr
o
p
o
s
e
d
in
Fo
r
m
6A
.
Li
n
e
15
Ͳ
Sh
o
u
l
d
eq
u
a
l
Li
n
e
6*Li
n
e
12
*52
we
e
k
s
Li
n
e
16
Ͳ
Sh
o
u
l
d
eq
u
a
l
Li
n
e
7*Li
n
e
13
*52
we
e
k
s
Li
n
e
17
Ͳ
Sh
o
u
l
d
eq
u
a
l
Li
n
e
14
+Li
n
e
15
+Li
n
e
16
Li
n
e
18
Ͳ
Sh
o
u
l
d
eq
u
a
l
Li
n
e
17
/2,
0
8
0
ho
u
r
s
Li
n
e
14
Ͳ
Sh
o
u
l
d
eq
u
a
l
Li
n
e
5*Li
n
e
11
*
26
0
da
y
s
Li
n
e
2Ͳ
Da
t
a
to
be
in
p
u
t
by
Re
c
o
l
o
g
y
.
Da
t
a
sh
o
u
l
d
re
f
l
e
c
t
th
e
as
s
u
m
p
t
i
o
n
s
us
e
d
fo
r
th
e
ba
s
i
s
of
th
e
co
s
t
s
pr
o
p
o
s
e
d
in
Fo
r
m
s
6A
Ͳ
6E
.
Li
n
e
3Ͳ
Id
e
n
t
i
f
y
nu
m
b
e
r
of
ho
u
r
s
pe
r
da
y
ea
c
h
re
g
u
l
a
r
ro
u
t
e
em
p
l
o
y
e
e
wi
l
l
wo
r
k
ea
c
h
da
y
(i
n
c
l
u
d
i
n
g
br
e
a
k
s
,
pr
e
Ͳ
an
d
po
s
t
Ͳro
u
t
e
ch
e
c
k
s
,
et
c
.
,
ex
c
l
u
d
e
s
ca
s
u
a
l
/
p
o
o
l
pe
r
s
o
n
n
e
l
)
.
Li
n
e
4Ͳ
Sh
o
u
l
d
eq
u
a
l
Li
n
e
2*Li
n
e
3*26
0
da
y
s
.
To
t
a
l
sh
o
u
l
d
ti
e
to
to
t
a
l
pa
y
r
o
l
l
ho
u
r
s
.
Li
n
e
s
11
,
12
,
an
d
13
Ͳ
Id
e
n
t
i
f
y
nu
m
b
e
r
of
ho
u
r
s
pe
r
da
y
ea
c
h
ro
u
t
e
wi
l
l
ta
k
e
to
co
m
p
l
e
t
e
(i
n
c
l
u
d
i
n
g
co
l
l
e
c
t
i
o
n
ti
m
e
an
d
ha
u
l
i
n
g
ti
m
e
to
tr
a
n
s
f
e
r
st
a
t
i
o
n
,
la
n
d
f
i
l
l
,
or
pr
o
c
e
s
s
i
n
g
si
t
e
)
.
Li
n
e
1Ͳ
Sh
o
u
l
d
eq
u
a
l
th
e
nu
m
b
e
r
of
cu
s
t
o
m
e
r
se
r
v
i
c
e
d
on
awe
e
k
l
y
ba
s
i
s
Li
n
e
s
5,
6,
an
d
7Ͳ
In
f
o
r
m
a
t
i
o
n
is
to
be
re
p
o
r
t
e
d
fo
r
co
l
l
e
c
t
i
o
n
ro
u
t
e
s
on
l
y
an
d
do
e
s
no
t
in
c
l
u
d
e
an
y
su
p
p
o
r
t
(e
.
g
.
,
co
n
t
a
i
n
e
r
de
l
i
v
e
r
y
ro
u
t
e
s
,
cl
e
a
n
u
p
ro
u
t
e
s
,
mi
s
s
e
d
pi
c
k
u
p
ro
u
t
e
s
et
c
.
)
Li
n
e
8,
9,
an
d
10
Ͳ
Da
t
a
to
be
in
p
u
t
by
Re
c
o
l
o
g
y
.
Da
t
a
sh
o
u
l
d
re
f
l
e
c
t
th
e
as
s
u
m
p
t
i
o
n
s
us
e
d
fo
r
th
e
ba
s
i
s
of
th
e
co
s
t
s
pr
o
p
o
s
e
d
in
Fo
r
m
s
6A
Ͳ
6E
.
P
a
g
e
3
o
f
2
2
Form 3
ProposedLaborRequirements CityofCupertinoFutureServices
ProposerName:Recology
NotetoRecology:Inputdatainyellowshadedareasonly.
RoutePersonnelHeadcount(includefractionofemployee)
ResidentialCartSolidWaste(6A)3.8 1.0 4.8
ResidentialCartRecyclableMaterials(6A)3.9 1.0 4.9
ResidentialCartOrganicMatrials(6A)3.0 0.7 3.7
CommercialCartSolidWaste(6B)0.2 0.0 0.2
CommercialCartRecyclableMaterials(6B)0.8 0.2 1.0
CommercialCartOrganicMaterials(6B)0.0 0.0 0.1
CommercialBinSolidWaste(6C)2.3 0.6 2.8
CommercialBinRecyclableMaterials(6C)1.7 0.4 2.1
CommercialBinOrganicMaterials(6C)0.9 0.2 1.1
RollͲOff(6D)2.1 0.5 2.7
HHW(6E)0.0 0.0 0.0
Bulky(6E)1.0 0.3 1.3
Stinger 0.0
SubtotalRoutePersonnel 19.6 4.9 24.5
OtherPersonnelHeadcount(includefractionofemployee)#ofEmployees HourlyRate
ExecutiveManagement(CEO,CFO,COO,etc.)
GeneralManager 0.6
OperationsManager 0.6
MunicipalRelationsManager
RouteSupervisor 1.1
Dispatcher 0.6
ContainerDistribution 0.6
ContainerMaintenance/Welder 1.1
MaintenanceSupervisor 0.6
MaintenancePersonnel 2.8
Controller
SafetySpecialist
StaffAccountant
OfficeManager 0.6
HumanResources
AccountingClerk 0.6
BillingsClerk
AccountsReceivableClerk
CollectionClerk
Financial&ReportingAnalyst0.75
BenefitsCoordinator
CustomerServiceSupervisor
CustomerServiceRepresentatives 1.1
SalesCoordinator
RecyclingManager
WasteZeroSpecialist 2.0
ContractManager
Other(specify):__________________
Other(specify):__________________
SubtotalOtherPersonnel 12.8
37.3
#ofRegularPersonnel #ofCasual/Pool Total HourlyRate BenefitsCost/Hour
Notes BenefitsCost/Hour
TotalAllPersonnel
Page 4 of 22
Form 4
CapitalRequirements CityofCupertinoFutureServices
ProposerName:Recology
NotetoRecology:Inputdatainyellowshadedareasonly.
Actual Spare Total Actual Spare Total Actual Spare Total
Vehicles
CollectionVehicles
ResidentialCartSolidWaste 0 0 0 0 0 N/A
ResidentialCartRecyclableMaterials 0 0 0 0 0 N/A
ResidentialCartOrganicMaterials 0 0 0 0 0 N/A
CommercialCartSolidWaste 0 0 0 0 0 N/A
CommercialCartRecyclableMaterials 0 0 0 0 0 N/A
CommercialCartOrganicMaterials 0 0 0 0 0 N/A
CommercialBinSolidWaste 0 0 0 0 0 N/A
CommercialBinRecyclableMaterials 0 0 0 0 0 N/A
CommercialBinOrganicMaterials 0 0 0 0 0 N/A
RollͲOff 0 0 0 0 0 N/A
HHW 0 0 0 0 0 N/A
BulkyItems/ReusableMaterials 0 0 0 0 0 N/A
Subtotal 000000000 $0
OtherVehicles
PickupTrucks 0 0 0 0 0 N/A
ContainerDistribution 0 0 0 0 0 N/A
MobileServiceTruck 0 0000 N/A
Stinger 0 0000 N/A
Other(specify):__________________ 0 0 0 0 0 N/A
Other(specify):__________________ 0 0 0 0 0 N/A
Subtotal 000000000 $0
TotalVehicleCost $0
Containers
Carts
SolidWaste35Ͳgallon 0 0 0 0 0 N/A
SolidWaste64Ͳgallon 0 0 0 0 0 N/A
SolidWaste96Ͳgallon 0 0 0 0 0 N/A
RecyclableMaterial32Ͳgallon 0 0 0 0 0 N/A
RecyclableMaterial64Ͳgallon 0 0000 N/A
RecyclableMaterial96Ͳgallon 0 0 0 0 0 N/A
OrganicMaterials32Ͳgallon 0 0 0 0 0 N/A
OrganicMaterials64Ͳgallon 0 0 0 0 0 N/A
OrganicMaterials96Ͳgallon 0 0000 N/A
Subtotal 000000000 $0
Bins
1cubicyard 0 0 0 0 0 N/A
1.5cubicyards 0 0000 N/A
2cubicyards 0 0000 N/A
3cubicyards 0 0000 N/A
4cubicyards 0 0000 N/A
5cubicyards 0 0000 N/A
6cubicyards 00000N/A
Subtotal 000000000 $0
DropBoxes
7cubicyards 0 0 0 0 0 N/A
20cubicyards 0 0000 N/A
30cubicyards 0 0000 N/A
40cubicyards 0 0000 N/A
Subtotal 000000000 $0
FoodwastePails 0 0 0 0 0 N/A
Other(specify):__________________ 0 0 0 0 0 N/A
Other(specify):__________________ 0 0 0 0 0 N/A
Subtotal 000000000 $0
TotalContainerCost $0
Other Description
Offices
ProcessingSite(s)
TransferStation
CorporationYard/Maintenance
ContainerStorageYard
ShopEquipment
FuelingEquipment
ComputerandOfficeEquipment
Other(specify):__________________
Other(specify):__________________
TotalOtherCost $0
TotalCapitalCost $0
AveragePrice
Quantity
TotalCapitalCost
OverContractTerm
(in2022dollars)
TotalNew Used
Page 5 of 22
Fo
r
m
5
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m
m
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y
of
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p
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:
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Form 6
CollectionCostProposal CityofCupertinoFutureServices
ProposerName:Recology
NotetoRecology:NodatainputrequiredonForm6;costsarepulledfromForms6AͲ6E.
RatePeriodOne
SUMMARY(TotalCostsfromForms6Athrough6E)FromFebruary1,2021
toJanuary31,2022
LaborͲRelatedCosts(includeregular&poolpersonnel)
RegularWages $1,641,333
OvertimeWages $436,351
HolidayWages $169,366
VacationWages $214,267
SickLeaveWages $87,809
WorkersCompensationInsurancePremiums $216,294
WorkersCompensationClaims $0
Health&Welfare $804,688
Pension/RetirementBenefits $240,121
PayrollTaxes $197,363
Other(PleaseList)$0
TotalLaborRelatedͲCosts $4,007,593
VehicleͲRelatedCosts(donotincludedepreciation)
Tires&Tubes $72,824
Parts&Supplies(fluid,oil,etc,) $240,229
OutsideRepairs $145,749
Taxes&Licenses $78,203
OnͲBoardComputerOperationalCosts $43,374
Other(PleaseList)$0
TotalVehicleͲRelatedCosts $580,379
FuelCosts $345,489
OtherCosts
Liability&PropertyDamageInsurance $245,418
EquipmentInsurance $0
Training&SafetyPrograms $22,236
Uniforms $19,040
Towing $32,346
TotalOtherCosts $319,039
DirectDepreciation
ContainerDepreciation $163,863
RouteVehicleDepreciation $724,005
OtherDepreciation $17,985
TotalDirectDepreciation $905,853
AllocatedCostsͲLabor,Vehicle,Fuel&OtherCosts
FromGeneralandAdministrative(6F) $2,008,046
FromVehicleMaintenance(6F) $973,379
FromContainerMaintenance(6F) $6,569
TotalAllocatedCostsͲLabor,Vehicle,Fuel&OtherCosts $2,987,993
AllocatedCostsͲDepreciationandStartͲUpCosts
FromGeneralandAdministrative(6F)$35,311
FromVehicleMaintenance(6F) $0
FromContainerMaintenance(6F) $0
TotalAllocatedCostsͲDepreciationandStartͲUpCosts $35,311
TotalCostofOperations $9,181,656
GrossOperatingRatio(%OperatingRatio;i.e.90%): 72.5 % $3,482,697
Page 1 of 2
Form 6
CollectionCostProposal CityofCupertinoFutureServices
ProposerName:Recology
NotetoRecology:NodatainputrequiredonForm6;costsarepulledfromForms6AͲ6E.
RatePeriodOne
SUMMARY(TotalCostsfromForms6Athrough6E)FromFebruary1,2021
toJanuary31,2022
PassͲThroughCosts
DisposalCost 45.33$/ton $783,302
RecyclablesProcessingCosts 34.50$/ton $274,275
OrganicsProcessingCostsͲFacility#1 88.98$/ton $812,031
OrganicsProcessingCostsͲFacility#2 121.04$/ton $617,304
C&DProcessingCosts 45.33$/ton $113,325
ReusableMaterialsHandlingCosts Ͳ$/ton $0
OtherProcessingCosts:__________(specify)Ͳ$$0
InterestExpense $326,655
DirectLeaseCosts
RouteVehicles $0
Other(PleaseList)$0
TotalDirectLeaseCosts $0
AllocatedLeaseCosts
FromGeneralandAdministrative(6F) $180,000
FromVehicleMaintenance(6F) $0
FromContainerMaintenance(6F) $0
TotalAllocatedLeaseCosts $180,000
TotalPassͲThroughCosts $3,106,893
TotalCostBeforeCostReimbursements $15,771,247
CostReimbursementstoCity
SolidWasteOperationsFee 1,394,128.00$
Ͳ$
TotalReimbursementstoCity 1,394,128.00$
TotalProposedCost $17,165,375
GrossOperatingMargin $3,482,697
Less:FranchiseFee $1,740,683
NetProfitMargin $1,742,014
Page 2 of 2
Form 6ADetailedCollectionCostProposalInformation CityofCupertinoFutureServices
ProposerName:Recology
NotetoRecology:Inputdatainyellowshadedareasonly.
RESIDENTIALCARTCOSTS SolidWaste
Recyclable
Materials OrganicMaterials Subtotal
LaborͲRelatedCosts(includeregular&poolpersonnel)
RegularWages $318,665 $324,520 $248,408 $891,592
OvertimeWages $51,386 $78,993 $45,159 $175,538
HolidayWages $32,882 $33,487 $25,633 $92,002
VacationWages $41,600 $42,364 $32,428 $116,392
SickLeaveWages $17,048 $17,361 $13,290 $47,699
WorkersCompensationInsurancePremiums $41,993 $42,765 $32,735 $117,494
WorkersCompensationClaims $0
Health&Welfare $156,230 $159,101 $121,786 $437,117
Pension/RetirementBenefits $46,619 $47,476 $36,341 $130,437
PayrollTaxes $35,737 $38,458 $28,253 $102,449
Other(PleaseList)$0
TotalLaborRelatedͲCosts $742,162 $784,524 $584,033 $2,110,719
VehicleͲRelatedCosts(donotincludedepreciation)
Tires&Tubes $13,865 $14,120 $10,808 $38,794
Parts&Supplies(fluid,oil,etc,)$45,739 $46,579 $35,654 $127,972
OutsideRepairs $27,750 $28,260 $21,632 $77,641
Taxes&Licenses $15,183 $15,462 $11,836 $42,481
OnͲBoardComputerOperationalCosts $8,258 $8,410 $6,438 $23,106
Other(PleaseList)$0
TotalVehicleͲRelatedCosts $110,795 $112,831 $86,368 $309,994
FuelCosts $64,228 $69,433 $50,838 $184,499
OtherCosts
Liability&PropertyDamageInsurance $47,648 $48,523 $37,143 $133,314
EquipmentInsurance $0
Training&SafetyPrograms $4,317 $4,396 $3,365 $12,079
Uniforms $3,697 $3,765 $2,882 $10,343
Towing $6,158 $6,272 $4,801 $17,231
TotalOtherCosts $61,820 $62,956 $48,190 $172,966
DirectDepreciation
ContainerDepreciation $31,814 $32,398 $24,800 $89,012
RouteVehicleDepreciation $142,662 $145,284 $111,209 $399,155
OtherDepreciationͲ24GallonSolidWasteCarts $17,985 $17,985
TotalDirectDepreciation $192,461 $177,682 $136,009 $506,152
AllocatedCostsͲLabor,Vehicle,Fuel&OtherCosts
FromGeneralandAdministrative(6F)$281,126 $281,126 $281,126 $843,379
FromVehicleMaintenance(6F)$136,273 $136,273 $136,273 $408,819
FromContainerMaintenance(6F)$920 $920 $920 $2,759
TotalAllocatedCostsͲLabor,Vehicle,Fuel&OtherCosts $418,319 $418,319 $418,319 $1,254,957
AllocatedCostsͲDepreciationandStartͲUpCosts
FromGeneralandAdministrative(6F)$4,944 $4,944 $4,944 $14,831
FromVehicleMaintenance(6F)$0 $0 $0 $0
FromContainerMaintenance(6F)$0 $0 $0 $0
TotalAllocatedCostsͲDepreciationandStartͲUpCosts $4,944 $4,944 $4,944 $14,831
TotalCostofOperations $1,594,729 $1,630,689 $1,328,701 $4,554,118
Profit(Enter%OperatingRatio;i.e.95%):72.5% $604,897 $618,537 $503,990 $1,727,424
RatePeriodOne
FromFebruary1,2021toJanuary31,2022
Page 9 of 22
Form 6ADetailedCollectionCostProposalInformation CityofCupertinoFutureServices
ProposerName:Recology
NotetoRecology:Inputdatainyellowshadedareasonly.
RESIDENTIALCARTCOSTS SolidWaste
Recyclable
Materials OrganicMaterials Subtotal
RatePeriodOne
FromFebruary1,2021toJanuary31,2022
PassͲThroughCosts perton
DisposalCost 45.33$$340,882 $0 $0 $340,882
RecyclablesProcessingCosts 34.50$$0 $168,705 $0 $168,705
BulkyItems/ReusableMaterialsHandlingCosts Ͳ$$0 $0 $0 $0
OtherProcessingCosts:__________(specify)Ͳ$$0 $0 $0 $0
OrganicsProcessingCostsͲFacility#1 88.98$$0 $0 $712,730 $712,730
OrganicsProcessingCostsͲFacility#2 121.04$$0 $0 $0 $0
C&DProcessingCosts 45.33$$0 $0 $0 $0
InterestExpense $64,054 $65,231 $49,932 $179,217
DirectLeaseCosts
RouteVehicles $0
Other(PleaseList)$0
TotalDirectLeaseCosts $0 $0 $0 $0
AllocatedLeaseCosts
FromGeneralandAdministrative(6E)$25,200 $25,200 $25,200 $75,600
FromVehicleMaintenance(6E)$0 $0 $0 $0
FromContainerMaintenance(6E)$0 $0 $0 $0
TotalAllocatedLeaseCosts $25,200 $25,200 $25,200 $75,600
TotalPassͲThroughCosts $430,136 $259,136 $787,862 $1,477,133
TotalCost $2,629,762 $2,508,361 $2,620,552 $7,758,675
Page 10 of 22
Form 6BDetailedCollectionCostProposalInformation CityofCupertinoFutureServices
ProposerName:Recology
NotetoRecology:Inputdatainyellowshadedareasonly.
COMMERCIALCARTCOSTS SolidWaste
Recyclable
Materials
Organic
Materials Subtotal
LaborͲRelatedCosts(includeregular&poolpersonnel)
RegularWages $13,382 $63,566 $3,596 $80,544
OvertimeWages $2,158 $15,473 $654 $18,285
HolidayWages $1,381 $6,559 $371 $8,311
VacationWages $1,747 $8,298 $470 $10,515
SickLeaveWages $716 $3,401 $192 $4,309
WorkersCompensationInsurancePremiums $1,764 $8,377 $474 $10,614
WorkersCompensationClaims $0
Health&Welfare $6,561 $31,164 $1,763 $39,488
Pension/RetirementBenefits $1,958 $9,299 $526 $11,783
PayrollTaxes $1,501 $7,533 $409 $9,443
Other(PleaseList)$0
TotalLaborRelatedͲCosts $31,167 $153,670 $8,456 $193,292
VehicleͲRelatedCosts(donotincludedepreciation)
Tires&Tubes $582 $2,766 $1,565 $4,913
Parts&Supplies(fluid,oil,etc,)$1,921 $9,124 $5,162 $16,207
OutsideRepairs $1,165 $5,535 $3,132 $9,833
Taxes&Licenses $638 $3,029 $171 $3,838
OnͲBoardComputerOperationalCosts $347 $1,647 $932 $2,926
Other(PleaseList)$0
TotalVehicleͲRelatedCosts $4,653 $22,101 $10,962 $37,716
FuelCosts $2,697 $13,600 $736 $17,034
OtherCosts
Liability&PropertyDamageInsurance $2,001 $9,505 $538 $12,043
EquipmentInsurance $0
Training&SafetyPrograms $181 $861 $49 $1,091
Uniforms $155 $737 $42 $934
Towing $259 $1,228 $695 $2,182
TotalOtherCosts $2,596 $12,332 $1,323 $16,251
DirectDepreciation
ContainerDepreciation $1,336 $6,346 $359 $8,041
RouteVehicleDepreciation $5,991 $28,458 $1,610 $36,059
OtherDepreciation $0
TotalDirectDepreciation $7,327 $34,804 $1,969 $44,100
AllocatedCostsͲLabor,Vehicle,Fuel&OtherCosts
FromGeneralandAdministrative(6F)$21,285 $100,603 $116,467 $238,355
FromVehicleMaintenance(6F)$10,318 $48,766 $56,456 $115,540
FromContainerMaintenance(6F)$70 $329 $381 $780
TotalAllocatedCostsͲLabor,Vehicle,Fuel&OtherCosts $31,673 $149,698 $173,304 $354,675
AllocatedCostsͲDepreciationandStartͲUpCosts
FromGeneralandAdministrative(6F)$374 $1,769 $2,048 $4,191
FromVehicleMaintenance(6F)$0 $0 $0 $0
FromContainerMaintenance(6F)$0 $0 $0 $0
TotalAllocatedCostsͲDepreciationandStartͲUpCosts $374 $1,769 $2,048 $4,191
TotalCostofOperations $80,487 $387,974 $198,798 $667,259
Profit(Enter%OperatingRatio;i.e.95%):72.5 % $30,530 $147,162 $75,406 $253,098
RatePeriodOne
FromFebruary1,2021toJanuary31,2022
Page 11 of 22
Form 6BDetailedCollectionCostProposalInformation CityofCupertinoFutureServices
ProposerName:Recology
NotetoRecology:Inputdatainyellowshadedareasonly.
COMMERCIALCARTCOSTS SolidWaste
Recyclable
Materials
Organic
Materials Subtotal
RatePeriodOne
FromFebruary1,2021toJanuary31,2022
PassͲThroughCosts perton
DisposalCost 45.33$$16,319 $0 $0 $16,319
RecyclablesProcessingCosts 34.50$$0 $13,110 $0 $13,110
BulkyItems/ReusableMaterialsHandlingCosts Ͳ$$0 $0 $0 $0
OtherProcessingCosts:__________(specify)Ͳ$$0 $0 $0 $0
OrganicsProcessingCostsͲFacility#1 88.98$$0 $0 $10,322 $10,322
OrganicsProcessingCostsͲFacility#2 121.04$$0 $0 $0 $0
C&DProcessingCosts 45.33$$0 $0 $0 $0
InterestExpense $2,690 $12,777 $723 $16,190
DirectLeaseCosts
RouteVehicles $0
Other(PleaseList)$0
TotalDirectLeaseCosts $0 $0 $0 $0
AllocatedLeaseCosts
FromGeneralandAdministrative(6F)$1,908 $9,018 $10,440 $21,366
FromVehicleMaintenance(6F)$0 $0 $0 $0
FromContainerMaintenance(6F)$0 $0 $0 $0
TotalAllocatedLeaseCosts $1,908 $9,018 $10,440 $21,366
TotalPassͲThroughCosts $20,917 $34,905 $21,485 $77,307
TotalCost $131,934 $570,041 $295,689 $997,663
Page 12 of 22
Form 6CDetailedCollectionCostProposalInformation CityofCupertinoFutureServices
ProposerName:Recology
NotetoRecology:Inputdatainyellowshadedareasonly.
COMMERCIALBINCOSTS SolidWaste
Recyclable
Materials
Organic
Materials Subtotal
LaborͲRelatedCosts(includeregular&poolpersonnel)
RegularWages $189,024 $141,350 $76,195 $406,569
OvertimeWages $111,671 $48,459 $20,533 $180,664
HolidayWages $19,505 $14,586 $7,862 $41,953
VacationWages $24,676 $18,452 $9,947 $53,075
SickLeaveWages $10,113 $7,562 $4,076 $21,751
WorkersCompensationInsurancePremiums $24,910 $18,627 $10,041 $53,578
WorkersCompensationClaims $0
Health&Welfare $92,672 $69,299 $37,356 $199,327
Pension/RetirementBenefits $27,654 $20,679 $11,147 $59,480
PayrollTaxes $27,485 $17,839 $9,184 $54,507
Other(PleaseList)$0
TotalLaborRelatedͲCosts $527,709 $356,854 $186,341 $1,070,904
VehicleͲRelatedCosts(donotincludedepreciation)
Tires&Tubes $8,225 $6,150 $3,315 $17,690
Parts&Supplies(fluid,oil,etc,)$27,131 $20,288 $10,936 $58,356
OutsideRepairs $16,461 $12,309 $6,635 $35,405
Taxes&Licenses $9,006 $6,735 $3,630 $19,371
OnͲBoardComputerOperationalCosts $4,899 $3,663 $1,975 $10,536
Other(PleaseList)$0
TotalVehicleͲRelatedCosts $65,721 $49,145 $26,492 $141,358
FuelCosts $44,546 $31,119 $15,357 $91,023
OtherCosts
Liability&PropertyDamageInsurance $28,264 $21,135 $11,393 $60,792
EquipmentInsurance $0
Training&SafetyPrograms $2,561 $1,915 $1,032 $5,508
Uniforms $2,193 $1,640 $884 $4,716
Towing $3,653 $2,732 $1,473 $7,857
TotalOtherCosts $36,670 $27,421 $14,782 $78,873
DirectDepreciation
ContainerDepreciation $18,871 $14,112 $7,607 $40,590
RouteVehicleDepreciation $84,624 $63,281 $34,112 $182,016
OtherDepreciation $0
TotalDirectDepreciation $103,495 $77,392 $41,719 $222,606
AllocatedCostsͲLabor,Vehicle,Fuel&OtherCosts
FromGeneralandAdministrative(6F) $291,367 $217,271 $116,467 $625,105
FromVehicleMaintenance(6F)$141,237 $105,320 $56,456 $303,013
FromContainerMaintenance(6F) $953 $711 $381 $2,045
TotalAllocatedCostsͲLabor,Vehicle,Fuel&OtherCosts $433,558 $323,301 $173,304 $930,162
AllocatedCostsͲDepreciationandStartͲUpCosts
FromGeneralandAdministrative(6F) $5,124 $3,821 $2,048 $10,992
FromVehicleMaintenance(6F) $0 $0 $0 $0
FromContainerMaintenance(6F) $0 $0 $0 $0
TotalAllocatedCostsͲDepreciationandStartͲUpCosts $5,124 $3,821 $2,048 $10,992
TotalCostofOperations $1,216,823 $869,054 $460,042 $2,545,919
Profit(Enter%OperatingRatio;i.e.95%): 72.5 % $461,553 $329,641 $174,499 $965,693
RatePeriodOne
FromFebruary1,2021toJanuary31,2022
Page 13 of 22
Form 6CDetailedCollectionCostProposalInformation CityofCupertinoFutureServices
ProposerName:Recology
NotetoRecology:Inputdatainyellowshadedareasonly.
COMMERCIALBINCOSTS SolidWaste
Recyclable
Materials
Organic
Materials Subtotal
RatePeriodOne
FromFebruary1,2021toJanuary31,2022
PassͲThroughCosts perton
DisposalCost 45.33$$278,780 $0 $0 $278,780
RecyclablesProcessingCosts 34.50$$0 $75,900 $0 $75,900
BulkyItems/ReusableMaterialsHandlingCosts Ͳ$$0 $0 $0 $0
OtherProcessingCosts:__________(specify)Ͳ$$0 $0 $0 $0
OrganicsProcessingCostsͲFacility#1 88.98$$0 $0 $0 $0
OrganicsProcessingCostsͲFacility#2 121.04$$0 $0 $314,704 $314,704
C&DProcessingCosts 45.33$$0 $0 $0 $0
InterestExpense $37,995 $28,412 $15,316 $81,723
DirectLeaseCosts
RouteVehicles $0
Other(PleaseList)$0
TotalDirectLeaseCosts $0$0$0$0
AllocatedLeaseCosts
FromGeneralandAdministrative(6F) $26,118 $19,476 $10,440 $56,034
FromVehicleMaintenance(6F) $0 $0 $0 $0
FromContainerMaintenance(6F) $0 $0 $0 $0
TotalAllocatedLeaseCosts $26,118 $19,476 $10,440 $56,034
TotalPassͲThroughCosts $342,893 $123,788 $25,756 $492,437
TotalCost $2,021,269 $1,322,483 $660,297 $4,004,049
Page 14 of 22
Form 6DDetailedCollectionCostProposalInformation CityofCupertinoFutureServices
ProposerName:Recology
ROLLͲOFFCOSTS AllMaterialTypes Subtotal
LaborͲRelatedCosts(includeregular&poolpersonnel)
RegularWages $178,988 $178,988
OvertimeWages $48,378 $48,378
HolidayWages $18,469 $18,469
VacationWages $23,366 $23,366
SickLeaveWages $9,576 $9,576
WorkersCompensationInsurancePremiums $23,587 $23,587
WorkersCompensationClaims $0
Health&Welfare $87,751 $87,751
Pension/RetirementBenefits $26,185 $26,185
PayrollTaxes $21,584 $21,584
Other(PleaseList)$0
TotalLaborRelatedͲCosts $437,884 $437,884
VehicleͲRelatedCosts(donotincludedepreciation)
Tires&Tubes $7,788 $7,788
Parts&Supplies(fluid,oil,etc,) $25,690 $25,690
OutsideRepairs $15,587 $15,587
Taxes&Licenses $8,528 $8,528
OnͲBoardComputerOperationalCosts $4,639 $4,639
Other(PleaseList)$0
TotalVehicleͲRelatedCosts $62,231 $62,231
FuelCosts $36,076 $36,076
OtherCosts
Liability&PropertyDamageInsurance $26,763 $26,763
EquipmentInsurance $0
Training&SafetyPrograms $2,425 $2,425
Uniforms $2,076 $2,076
Towing $3,459 $3,459
TotalOtherCosts $34,723 $34,723
DirectDepreciation
ContainerDepreciation $17,869 $17,869
RouteVehicleDepreciation $80,131 $80,131
OtherDepreciation $0
TotalDirectDepreciation $98,000 $98,000
AllocatedCostsͲLabor,Vehicle,Fuel&OtherCosts
FromGeneralandAdministrative(6F)$240,965 $240,965
FromVehicleMaintenance(6F) $116,805 $116,805
FromContainerMaintenance(6F) $788 $788
TotalAllocatedCostsͲLabor,Vehicle,Fuel&OtherCosts $358,559 $358,559
AllocatedCostsͲDepreciationandStartͲUpCosts
FromGeneralandAdministrative(6F) $4,237 $4,237
FromVehicleMaintenance(6F) $0 $0
FromContainerMaintenance(6F) $0 $0
TotalAllocatedCostsͲDepreciationandStartͲUpCosts $4,237 $4,237
TotalCostofOperations $1,031,711 $1,031,711
Profit(Enter%OperatingRatio;i.e.95%):72.5 % $391,338 $391,338
RatePeriodOne
FromFebruary1,2021toJanuary31,
2022
NotetoRecology:Inputdatain
yellowshadedareasonly.
Page 15 of 22
Form 6DDetailedCollectionCostProposalInformation CityofCupertinoFutureServices
ProposerName:Recology
ROLLͲOFFCOSTS AllMaterialTypes Subtotal
RatePeriodOne
FromFebruary1,2021toJanuary31,
2022
NotetoRecology:Inputdatain
yellowshadedareasonly.
PassͲThroughCosts perton
DisposalCost 45.33$$147,323 $147,323
RecyclablesProcessingCosts 34.50$$16,560 $16,560
BulkyItems/ReusableMaterialsHandlingCosts Ͳ$$0 $0
OtherProcessingCosts:__________(specify)Ͳ$$0 $0
OrganicsProcessingCostsͲFacility#1 88.98$$88,980 $88,980
OrganicsProcessingCostsͲFacility#2 121.04$$302,600 $302,600
C&DProcessingCosts 45.33$$113,325 $113,325
InterestExpense $35,978 $35,978
DirectLeaseCosts
RouteVehicles $0
Other(PleaseList)$0
TotalDirectLeaseCosts $0 $0
AllocatedLeaseCosts
FromGeneralandAdministrative(6F) $21,600 $21,600
FromVehicleMaintenance(6F) $0 $0
FromContainerMaintenance(6F) $0 $0
TotalAllocatedLeaseCosts $21,600 $21,600
TotalPassͲThroughCosts $423,765 $423,765
TotalCost $1,846,814 $1,846,814
Page 16 of 22
Form 6E
DetailedCollectionCostProposalInformation CityofCupertinoFutureServices
ProposerName:Recology
NotetoRecology:Inputdatainyellowshadedareasonly.
OTHERCOSTS
BulkyItems/
Reusable
Materials
Other
(Specify)Subtotal
LaborͲRelatedCosts(includeregular&poolpersonnel)
RegularWages $83,639 $83,639
OvertimeWages $13,487 $13,487
HolidayWages $8,631 $8,631
VacationWages $10,919 $10,919
SickLeaveWages $4,475 $4,475
WorkersCompensationInsurancePremiums $11,022 $11,022
WorkersCompensationClaims $0
Health&Welfare $41,005 $41,005
Pension/RetirementBenefits $12,236 $12,236
PayrollTaxes $9,380 $9,380
Other(PleaseList)$0
TotalLaborRelatedͲCosts $194,793 $0 $194,793
VehicleͲRelatedCosts(donotincludedepreciation)
Tires&Tubes $3,639 $3,639
Parts&Supplies(fluid,oil,etc,) $12,005 $12,005
OutsideRepairs $7,283 $7,283
Taxes&Licenses $3,985 $3,985
OnͲBoardComputerOperationalCosts $2,168 $2,168
Other(PleaseList)$0
TotalVehicleͲRelatedCosts $29,080 $0 $29,080
FuelCosts $16,858 $16,858
OtherCosts
Liability&PropertyDamageInsurance $12,506 $12,506
EquipmentInsurance $0
Training&SafetyPrograms $1,133 $1,133
Uniforms $970 $970
Towing $1,616 $1,616
TotalOtherCosts $16,226 $0 $16,226
DirectDepreciation
ContainerDepreciation $8,350 $8,350
RouteVehicleDepreciation $26,644 $26,644
OtherDepreciation $0
TotalDirectDepreciation $34,994 $0 $34,994
RatePeriodOne
FromFebruary1,2021toJanuary31,2022
Page 17 of 22
Form 6E
DetailedCollectionCostProposalInformation CityofCupertinoFutureServices
ProposerName:Recology
NotetoRecology:Inputdatainyellowshadedareasonly.
OTHERCOSTS
BulkyItems/
Reusable
Materials
Other
(Specify)Subtotal
RatePeriodOne
FromFebruary1,2021toJanuary31,2022
AllocatedCostsͲLabor,Vehicle,Fuel&OtherCosts
FromGeneralandAdministrative(6F) $60,241 $0 $60,241
FromVehicleMaintenance(6F) $29,201 $0 $29,201
FromContainerMaintenance(6F) $197 $0 $197
TotalAllocatedCostsͲLabor,Vehicle,Fuel&OtherCosts $89,640 $0 $89,640
AllocatedCostsͲDepreciationandStartͲUpCosts
FromGeneralandAdministrative(6F) $1,059 $0 $1,059
FromVehicleMaintenance(6F) $0 $0 $0
FromContainerMaintenance(6F) $0 $0 $0
TotalAllocatedCostsͲDepreciationandStartͲUpCosts $1,059 $0 $1,059
TotalCostofOperations $382,650 $0 $382,650
Profit(Enter%OperatingRatio;i.e.95%): 72.5 % $145,143 $0 $145,143
PassͲThroughCosts perton
DisposalCost 45.33$$0 $0 $0
RecyclablesProcessingCosts 34.50$$0 $0 $0
BulkyItems/ReusableMaterialsHandlingCosts Ͳ$$0 $0 $0
OtherProcessingCosts:__________(specify)Ͳ$$0 $0 $0
OrganicsProcessingCostsͲFacility#1 88.98$$0 $0 $0
OrganicsProcessingCostsͲFacility#2 121.04$$0 $0 $0
C&DProcessingCosts 45.33$$0 $0 $0
InterestExpense $13,547 $13,547
DirectLeaseCosts
RouteVehicles $0
Other(PleaseList)$0
TotalDirectLeaseCosts $0 $0 $0
AllocatedLeaseCosts
FromGeneralandAdministrative(6F) $5,400 $0 $5,400
FromVehicleMaintenance(6F) $0 $0 $0
FromContainerMaintenance(6F) $0 $0 $0
TotalAllocatedLeaseCosts $5,400 $0 $5,400
TotalPassͲThroughCosts $18,947 $0 $18,947
TotalCost $546,740 $0 $546,740
Page 18 of 22
Form 6F
DetailedCollectionCostProposalInformation CityofCupertinoFutureServices
ProposerName:Recology
NotetoRecology:Inputdatainyellowshadedareasonly.
PROPOSEDALLOCATEDCOST
Generaland
Administrative
Vehicle
Maintenance
Container
Maintenance Subtotal
LaborͲRelatedCosts(includenonͲroutepersonnelonly)
RegularWages $569,984 $378,845 $948,829
OvertimeWages $7,056 $107,714 $114,770
HolidayWages $16,131 $30,990 $47,121
VacationWages $54,287 $39,933 $94,220
SickLeaveWages $16,003 $16,003
WorkersCompensationInsurancePremiums $10,052 $42,427 $52,479
WorkersCompensationClaims $0
Health&Welfare $137,192 $162,936 $300,128
Pension/RetirementBenefits $48,367 $46,575 $94,942
PayrollTaxes $43,120 $43,922 $87,042
Other(PleaseList)$0
TotalLaborRelatedͲCosts $886,189 $869,343 $0 $1,755,533
VehicleͲRelatedCosts
Tires&Tubes $0
Parts&Supplies(fluid,oil,etc,)$94,035 $6,569 $100,604
Taxes&Licenses
Other(PleaseList)$0
TotalVehicleͲRelatedCosts $0 $94,035 $6,569 $100,604
FuelCosts $0
OtherCosts
Liability&PropertyDamageInsurance $0
EquipmentInsurance $0
RentͲTruck&ContainerYard $51,039 $51,039
Utilities $20,295 $20,295
BuildingMaintenance,Janitorial,Security $37,304
Telephone $82,036 $82,036
Postage $5,392
BankFees $25,855
BillingServices $26,848
NonͲvehicleRelatedSupplies $13,978 $13,978
NonͲvehicleRelatedTaxes&Licenses $31,500 $31,500
Training&SafetyPrograms $2,354 $2,354
Ongoing,AnnualPublicEducation&OutreachEfforts $52,738 $52,738
Uniforms $0
ProfessionalServicesͲAccounting,Legal,Engineering $35,000 $10,000
BadDebt $65,784 $65,784
PerformanceBond $15,200 $15,200
RegionalAccounting(GLAccounting,AR,AccountingMgr,Controller) $77,087
RegionalManagement(HR,Safety,Enviornmental,GroupMgr) $96,612
CorporateFinance $58,289
C2C $118,827
CorporateInformationTechnology $153,225
CorporateEnvironmentalCompliance $13,105
CorporateHumanResources $52,783
CorporateLegal $25,160
CorporateAdmininstration $48,376 $48,376
Travel&Meals(Mostistravelformileagereimbursements) $13,070
Other(PleaseList)$0
TotalOtherCosts $1,121,857 $10,000 $0 $383,300
TotalLabor,Vehicle,Fuel,andOtherCosts $2,008,046 $973,379 $6,569 $2,239,436
Depreciation(nonͲroutespecific)andStartͲUpCosts
VehicleDepreciation(nonͲroutevehicles)$0
OtherDepreciation $0
InitialPublicEducation&OutreachEfforts $18,911 $18,911
ProcurementCostReimbursement $0
StartͲupCostsͲ1383ContainerLabeling(Year4to10recovery) $16,400 $16,400
TotalDepreciationandStartͲUpCosts $35,311 $0 $0 $35,311
LeaseCosts
FacilityCosts:30%of1675RogersAveBuildingandProperty $180,000 $180,000
OtherLeaseCosts:_________________________(describe)$0
TotalLeaseCosts $180,000 $0 $0 $180,000
RatePeriodOne
FromFebruary1,2021toJanuary31,2022
Page 19 of 22
Form 6F
DetailedCollectionCostProposalInformation CityofCupertinoFutureServices
ProposerName:Recology
NotetoRecology:Inputdatainyellowshadedareasonly.
PROPOSEDALLOCATEDCOST
Generaland
Administrative
Vehicle
Maintenance
Container
Maintenance Subtotal
RatePeriodOne
FromFebruary1,2021toJanuary31,2022
TotalCoststobeAllocated $2,223,357 $973,379 $6,569 $2,454,747
Labor,Vehicle,Fuel,&OtherCostsAllocatedOut Percentage
ToResidentialCartSolidWaste(6A) 14.00% $281,126 $136,273 $920 $418,319
ToResidentialCartRecyclableMaterials(6A) 14.00% $281,126 $136,273 $920 $418,319
ToResidentialCartOrganicMaterials(6A) 14.00% $281,126 $136,273 $920 $418,319
ToCommercialCartSolidWaste(6B) 1.06% $21,285 $10,318 $70 $31,673
ToCommercialCartRecyclableMaterials(6B) 5.01% $100,603 $48,766 $329 $149,698
ToCommercialCartOrganicMaterials(6B) 5.80% $116,467 $56,456 $381 $173,304
ToCommercialBinSolidWaste(6C) 14.51% $291,367 $141,237 $953 $433,558
ToCommercialBinRecyclableMaterials(6C) 10.82% $217,271 $105,320 $711 $323,301
ToCommercialBinOrganicMaterials(6C) 5.80% $116,467 $56,456 $381 $173,304
ToRollͲOff(6D) 12.00% $240,965 $116,805 $788 $358,559
ToHHW(6E) 0.00% $0 $0 $0 $0
ToBulkyItemService(6E) 3.00% $60,241 $29,201 $197 $89,640
TotalLabor,Vehicle,Fuel&OtherCostsAllocatedOut 100.00% $2,008,046 $973,379 $6,569 $2,987,993
DepreciationandStartͲUpCostsAllocatedOut
ToResidentialCartSolidWaste(6A) 14.00% $4,944 $0 $0 $4,944
ToResidentialCartRecyclableMaterials(6A) 14.00% $4,944 $0 $0 $4,944
ToResidentialCartOrganicMaterials(6A) 14.00% $4,944 $0 $0 $4,944
ToCommercialCartSolidWaste(6B) 1.06% $374 $0 $0 $374
ToCommercialCartRecyclableMaterials(6B)5.01% $1,769 $0 $0 $1,769
ToCommercialCartOrganicMaterials(6B) 5.80% $2,048 $0 $0 $2,048
ToCommercialBinSolidWaste(6C) 14.51% $5,124 $0 $0 $5,124
ToCommercialBinRecyclableMaterials(6C) 10.82% $3,821 $0 $0 $3,821
ToCommercialBinOrganicMaterials(6C) 5.80% $2,048 $0 $0 $2,048
ToRollͲOff(6D) 12.00% $4,237 $0 $0 $4,237
ToHHW(6E) 0.00% $0 $0 $0 $0
ToBulkyItemService(6E) 3.00% $1,059 $0 $0 $1,059
TotalDepreciationandStartͲUpCostsAllocatedOut 100.00% $35,311 $0 $0 $35,311
LeaseCostsAllocatedOut
ToResidentialCartSolidWaste(6A) 14.00% $25,200 $0 $0 $25,200
ToResidentialCartRecyclableMaterials(6A) 14.00% $25,200 $0 $0 $25,200
ToResidentialCartOrganicMaterials(6A) 14.00% $25,200 $0 $0 $25,200
ToCommercialCartSolidWaste(6B) 1.06% $1,908 $0 $0 $1,908
ToCommercialCartRecyclableMaterials(6B) 5.01% $9,018 $0 $0 $9,018
ToCommercialCartOrganicMaterials(6B) 5.80% $10,440 $0 $0 $10,440
ToCommercialBinSolidWaste(6C) 14.51% $26,118 $0 $0 $26,118
ToCommercialBinRecyclableMaterials(6C) 10.82% $19,476 $0 $0 $19,476
ToCommercialBinOrganicMaterials(6C) 5.80% $10,440 $0 $0 $10,440
ToRollͲOff(6D) 12.00% $21,600 $0 $0 $21,600
ToHHW(6E) 0.00% $0 $0 $0 $0
ToBulkyItemService(6E) 3.00% $5,400 $0 $0 $5,400
TotalLeaseCostsAllocatedOut 100.00% $180,000 $0 $0 $180,000
TotalAllocatedOut $2,223,357 $973,379 $6,569 $3,203,304
Page 20 of 22
Fo
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INITIAL RATES FOR COLLECTION SERVICES
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EXHIBIT G4:
APPROVED SUBCONTRACTORS AND AFFILIATES
EXHIBIT G4
APPROVED SUBCONTRACTORS AND AFFILIATES
December 3, 2020 Page G4-1 City of Cupertino/Recology Franchise Exhibit G5
In accordance with Section 3.3 of the Agreement, the City has approved the following Subcontractors and
Affiliates to manage the specified services and otherwise assist Contractor in the performance of the
requirements of this Agreement.
Approved Facility/Subcontractor/Affiliate Services
GreenWaste Recovery Recyclables Processing
Recology Blossom Valley Organics – North Commercial/Multi-Family Organics Processing
South Valley Organics Residential (Single-Family) Organics Processing
Toter Inc New Cart rollout
Keith Day Trucking Transfer of Organics from Rogers Ave. to
Processing facilities; hauling of compost and
mulch for City
Clean Earth E-Waste and U-Waste Recycling
Viking Shred Document shredding for Environmental Days
Simms Metal White goods/metal Recycling
Safety Klean Used Motor Oil and Filters Recycling
Sequential Recycling Used cooking oil Recycling
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EXHIBIT H:
MINIMUM ANTICIPATED POSITIONS
EXHIBIT H
MINIMUM ANTICIPATED POSITIONS
December 3, 2020 Page H-1 City of Cupertino/Recology Franchise Exhibit H
Positions detailed in this Exhibit H are the minimum anticipated positions needed for the provision of
Recyclable Materials, Organic Materials, and Solid Waste Collection services and other related services in
the City.
Table 1 represents management positions classified as salary, exempt.
Table 2 represents non-management positions classified as hourly, non-exempt.
Table 1: Management Positions
Position Classification FTE
General Manager Management, Exempt 0.6
Operations Manager Management, Exempt 0.6
Route Supervisor Management, Exempt 1.1
Dispatcher Management, Exempt 0.6
Container Distribution Management, Exempt 0.6
Container Maintenance / Welder Management, Exempt 1.1
Maintenance Supervisor Management, Exempt 0.6
Maintenance Personnel Management, Exempt 2.8
Office Manager Management, Exempt 0.6
Accounting Clerk Management, Exempt 0.6
Financial & Reporting Analyst Management, Exempt 0.75
Customer Service Representatives Management, Exempt 1.1
Waste Zero Specialists Management, Exempt 2.0
Total Management Positions 12.8
Table 2: Non-Management Positions
Position Classification FTE
Route Personnel – Cart Solid Waste Non-Management, Non-Exempt 4.8
Route Personnel – Cart Recyclables Non-Management, Non-Exempt 4.9
Route Personnel – Cart Organics Non-Management, Non-Exempt 3.7
Route Personnel – COM Cart Solid Waste Non-Management, Non-Exempt 0.2
Route Personnel – COM Cart Recyclables Non-Management, Non-Exempt 1.0
Route Personnel – COM Cart Organics Non-Management, Non-Exempt 0.1
Route Personnel – COM Bin Solid Waste Non-Management, Non-Exempt 2.8
Route Personnel – COM Bin Recyclables Non-Management, Non-Exempt 2.1
Route Personnel – COM Bin Organic Materials Non-Management, Non-Exempt 1.1
Route Personnel – Roll-Off Non-Management, Non-Exempt 2.7
Route Personnel – Bulky Non-Management, Non-Exempt 1.3
Non-Management, Non-Exempt
Non-Management, Non-Exempt
24.5
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EXHIBIT I:
FORM OF PERFORMANCE BOND
EXHIBIT I
FORM OF PERFORMANCE BOND
December 3, 2020 Page I-1 City of Cupertino/Recology Franchise Exhibit I
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EXHIBIT J:
SB 1383 RESPONSIBILITIES
EXHIBIT J
SB 1383 RESPONSIBILITIES
December 3, 2020 Page J-1 City of Cupertino/Recology Franchise Exhibit J
The following table provides guidance regarding the allocation of broad responsibility between the Contractor and the City with regard to SB
1383 compliance. The table is based on the draft regulations issued for formal review by CalRecycle on April 20, 2020, and assumes use of the
standard approach to compliance. The table is not intended to be inclusive of detailed requirements for compliance addressed in the body of
the Agreement and does not relieve Contractor of or expand those specific obligations. The below table may contain terms that are specific
to SB 1383 or may have capitalized terms with different meanings than this Agreement. In the event of any conflict between this exhibit on
the one hand, and the body of the Agreement, any other exhibit, or SB 1383 on the other hand, the latter shall govern.
Topic/
Ref. # SB 1383 Requirement City Responsibility Contractor Responsibility
Collection
1. Commencing January 1, 2022, provide
Collection Containers to Generators that
comply with color requirements when
replacing Containers or by January 1,
2036, whichever comes first (§18984.7).
The City is to review, comment on, and
approve Container colors.
Contractor to provide Containers to the City and its
Customers that comply with SB 1383 requirements.
Container colors shall be as such: green for Organic
Materials; blue for Recyclable Containers; gray for Solid
Waste Containers.
2. Commencing January 1, 2022, clearly
label or imprint all new Containers or lids
to include language or graphic materials
indicating primary materials that are
accepted and rejected in each Container
(§18984.8).
The City is to review, comment on, and
approve Container labels.
In accordance with Section 5.6, Contractor to place City-
approved labels on all new or refurbished Containers;
labels should include text and/or graphic images that
indicate primary materials that are accepted and primary
materials that are not accepted for each Container type.
Labels shall be placed on new Containers before or at
time of initial Container delivery to Customer or to the
City. By the end of Agreement Term, every Customer
Container shall have SB 1383-compliant labels.
Contamination Monitoring
3. Commencing April 1, 2022, conduct
Route reviews such that all Hauler Routes
are inspected annually. During each
Route review, inspect randomly selected
Containers for contaminants and
determine Organic Waste Generator
compliance (Organic Waste Generators
must subscribe to collection service or
self-haul Organic Materials; commercial
Organic Waste Generators are also
required to provide color-compliant
Containers to their Customers).
The City is to review, comment on, and
approve Route review plan and
methodology provided by Contractor.
The City is to review, comment on, and
approve content and design of notices to
be distributed by Contractor to
noncompliant Generators.
Contractor shall develop a plan and methodology, to be
approved by the City, for conducting annual Route
reviews such that an adequate number of Containers are
inspected on all Routes annually.
The number of Containers that must be inspected per
Route shall be based on guidelines provided below, as
referenced in Section 18984.5. The draft regulations do
not specify what an "adequate" number of Containers
per Route review entails; however, Section 18984.5
determines adequacy for a different type of
contamination study based on Route populations. As
such, these guidelines will be utilized for Route reviews.
EXHIBIT J
SB 1383 RESPONSIBILITIES
December 3, 2020 Page J-2 City of Cupertino/Recology Franchise Exhibit J
Topic/
Ref. # SB 1383 Requirement City Responsibility Contractor Responsibility
If contamination is found during Route
reviews or if inspected Generators are
out of compliance, notify such
Generators of recycling requirements
(§18984.5.b; 18995.1; 18984.9).
“Route review(s)” means a visual
inspection of Containers along a Hauler
Route for the purpose of determining
contamination, and may include
mechanical methods such as the use
cameras (§18982).
“Hauler Route” means the designated
itinerary or sequence of stops for each
segment of the jurisdictions collection
services.
1. For Routes with less than 1,500 Generators the study
shall include a minimum of 25 samples;
2. For Routes with 1,500-4,000 Generators the study
shall include a minimum of 30 samples;
3. For Routes with 4,001-7,000 Generators the study
shall include a minimum of 35 samples;
4. For Routes with more than 7,000 Generators the
study shall include a minimum of 40 samples.
In the event that Contractor identifies contamination,
Contractor shall be responsible for affixing a City-
approved notice on to Customer's Containers,
documenting the location or account where
contamination was present.
Contractor shall provide monthly reports to the City
summarizing the results of each Route review and
recording, at a minimum, each contamination location,
corresponding photographic evidence, and date of
Customer contamination identified.
EXHIBIT J
SB 1383 RESPONSIBILITIES
December 3, 2020 Page J-3 City of Cupertino/Recology Franchise Exhibit J
Topic/
Ref. # SB 1383 Requirement City Responsibility Contractor Responsibility
Enforcement & Penalties
4. Commencing January 1, 2022, conduct
annual compliance reviews of
commercial Solid Waste accounts that
produce over two (2) cubic yards of Solid
Waste per week, including organics
waste (§18995.1.a).
The City shall, if applicable, provide
Contractor with a list of commercial
accounts that have received City-
approved organics collection waivers.
The City shall approve format and
content of all compliance reports
provided by Contractor.
The City shall receive Contractor's report,
review and clarify as needed, and report
to the State.
The City shall follow-up with Contractor-
indicated commercial accounts that may
Back-Haul Organic Materials.
Annually, Contractor shall review all Commercial garbage
accounts that produce over two (2) cubic yards of Solid
Waste per week and that produce organics waste to
ensure compliance with organics Generator
requirements described in Section 18984.9.a
(subscription to organics recycling service).
Following each compliance review, Contractor shall
provide the City with a report of results, including
addresses, and service level information in a format
accepted and approved by the City.
Additionally, Contractor shall provide to the City, in
quarterly reports, a list of Commercial Customers that
may be Back-Hauling Organic Materials. The list shall
include account information including addresses and
service levels.
5. From January 1, 2022 through December
31, 2023, provide educational materials
to regulated entities not in compliance
with SB 1383, as determined by
compliance review of Commercial
accounts (§18995.1.a).
The City is to develop content and design
of compliance notices for Customers.
Contractor shall produce and distribute City-developed
compliance notices to all noncompliant Customers of
Contractor annually.
6. Commencing January 1, 2022, conduct
inspections of Tier One Commercial
Edible Food Generators for compliance
with Section 18991.3. Beginning January
1, 2024, conduct inspections of Tier Two
Commercial Edible Food Generators for
compliance with Sections 18991.3
(§18995.1.a.2).
See Item 16 for outreach requirements
related to Edible Food.
The City and Contractor will meet and
confer annually to determine how to
share this inspection requirement.
The City and Contractor will meet and confer annually to
determine how to share this inspection requirement.
7. Commencing January 1, 2022, conduct
inspections of Edible Food recovery
The City is to conduct inspections of Food
Recovery Services and organizations.
None.
EXHIBIT J
SB 1383 RESPONSIBILITIES
December 3, 2020 Page J-4 City of Cupertino/Recology Franchise Exhibit J
Topic/
Ref. # SB 1383 Requirement City Responsibility Contractor Responsibility
organizations and services for
compliance with Sections 18991.5.
See Item 16 for outreach requirements
related to Edible Food.
8. Commencing January 1, 2022, investigate
written Complaints received within
ninety (90) days of receiving Complaint;
provide method for Customer who made
Complaint to determine results of
Complaint; maintain records of all
Complaints and responses; take
enforcement action if it is determined
that a violation has occurred (§18995.3).
The City is to investigate and maintain
records of all SB 1383-related Complaints
received by Contactor that have not been
resolved within thirty (30) days of
receiving Customer Complaint. Upon
resolving the Complaint, Contractor shall
notify the Customer who made the
Complaint.
From January 1, 2022 to December 31,
2023, if, upon investigation, the City
discovers a violation has occurred, the
City shall provide educational materials
to noncompliant Customers.
Commencing January 1, 2024, if, upon
investigation, the City discovers a
violation has occurred, the City shall take
enforcement action against
noncompliant Customers.
Contractor to investigate and resolve written Complaints
made by Customers alleging SB 1383 violations within
thirty (30) days of receiving Customer Complaint. Upon
resolving the Complaint, Contractor shall notify the
Customer who made the Complaint.
From January 1, 2022 to December 31, 2023, if, upon
investigation, Contractor discovers a violation has
occurred, Contractor shall provide City-approved
educational materials to noncompliant Customers.
Commencing January 1, 2024, if, upon investigation,
Contractor discovers a violation has occurred, Contractor
shall provide the City, in monthly reports, with a list of
such noncompliant Customers.
Contractor shall maintain all compliant records, including
documentation of resolution.
Contractor to provide the City, in monthly reports, a list
of Customer Complaints that have not been resolved
within thirty (30) days. The Complaints list shall include
Customer account information including the nature of
the Complaint. Such Complaints shall be discussed
during the monthly Franchise Roundtable Meeting.
9. Commencing January 1, 2024, take
enforcement actions, including issuing
notices of violations within sixty (60) days
of determining a violation has occurred,
following up at least every ninety (90)
days to issue further notices if
compliance is not achieved, grant
The City is to issue penalties to
noncompliant Generators based on
Contractor-led inspections and monthly
reports submitted by Contractor that
identify noncompliant Generators.
Contractor to maintain records of noncompliant
Generators and report via monthly reports to the City on
issuance of noncompliant notices (e.g., contamination
tags issued, Route review results, commercial account
review).
EXHIBIT J
SB 1383 RESPONSIBILITIES
December 3, 2020 Page J-5 City of Cupertino/Recology Franchise Exhibit J
Topic/
Ref. # SB 1383 Requirement City Responsibility Contractor Responsibility
compliance deadline extensions if
applicable, and impose penalties
equivalent to or greater than those
outlined in Articles 14 and 16 of SB 1383
(§18995.4).
Impose penalties on non-compliant
entities (§18997.2).
Education & Outreach
10. By February 1, 2022, and annually
thereafter, provide Generators with
information on properly separating
materials, Organic Waste prevention, on-
site recycling, Community Composting,
methane reduction benefits, how to
Recycle Organic Waste, a list of approved
haulers, and information related to food
recovery (§18985.1.a).
The City is to develop content and design
of outreach materials and distribute
outreach materials to all Customers
annually.
The City is to provide outreach materials
to Contractor for website posting.
Contractor to post City-developed educational material
on its website annually or as requested by the City.
Contractor shall post material on its website within one
week of the City’s initial request and review and make
updates/changes to website on a monthly basis to
ensure accuracy of information.
Contractor to disseminate City-approved educational
materials as requested by the City.
11. Translate educational materials required
into any non-English language spoken by
a substantial number of the public
provided Organic Waste collection
services by the jurisdiction (§18985.1.e).
The City is to translate City-developed
outreach materials and translate such
materials as needed.
The City is to provide translated outreach
materials to Contractor for website
posting.
Contractor to post City-developed educational material
that has been translated by the City on its website
annually or as requested by the City. Contractor shall
post material on its website within one week of the
City’s initial request.
EXHIBIT J
SB 1383 RESPONSIBILITIES
December 3, 2020 Page J-6 City of Cupertino/Recology Franchise Exhibit J
Topic/
Ref. # SB 1383 Requirement City Responsibility Contractor Responsibility
Record Keeping & Reporting
12. By April 1, 2022, file an initial compliance
report that includes copies of adopted
ordinances, items required for the annual
report under Section 18994.2.b, and
contact information for the responsible
Party for compliance-related issues
(§18994.1).
Commencing August 1, 2022, submit an
annual report relative to compliance with
SB 1383; the first report is due October 1,
2022 for the period of January 1, 2022 to
June 30, 2022 (§18994.2).
The City is to compile and submit
relevant documentation for the initial
compliance report and the annual report.
The City shall compile documentation
that details the City's: hauler oversight;
CALGreen building standard utilization;
edible food recovery program; Organic
Waste recycling and edible food recovery
capacity planning; and, Organic Waste
product procurements.
No later than February 1, 2022, and within two weeks of
the City request, Contractor shall supply the City with
reports documenting Organic Waste collection services;
contamination monitoring; education and outreach
efforts; and, the monitoring and enforcement program.
13. Maintain all implementation records in a
central location (physical or electronic)
that can be made available to or
accessed by CalRecycle within ten
Business Days (§18981.1, 18984.4.a,
18984.6, 18984.14, 18985.3, 18988.4,
18991.2, 18993.2, 18995.2).
The City is to maintain all
implementation records including:
ordinances, enforceable mechanisms,
contracts, or agreements; waiver and
exemption records; hauler program
records; edible food recovery program
records; and organic waste procurement
records.
Contractor shall enter required data including
documentation of organic waste collection services;
contamination monitoring; education and outreach
efforts; and, monitoring and enforcement into a City-
designated reporting platform (e.g., Recyclist, Microsoft
Excel, a database) within five (5) Business Days of any
change affecting data within any required reporting
category and within one (1) Business Days of notification
from CalRecycle request to review implementation
record.
In the event such information is not entered into a
shared electronic platform, Contractor shall convey data
to the City within the required period.
Organic Materials Procurement
14. Procure a quantity of recovered organic
waste that meets or exceeds the organic
waste product procurement target as
determined by the CalRecycle
(CalRecycle will confirm and provide
notice of annual procurement
requirements to jurisdictions every five
years) (§18993.1).
The City is to procure a quantity of
Compost and Mulch from Contractor
annually.
The exact quantity for procurement shall
be determined by the Parties.
Contractor to Transport Organic Materials collected from
Customers to the Approved Facility.
Contractor shall, at the City’s option, procure fuels
derived from organics disposal (biofuels) to power
collection vehicles.
EXHIBIT J
SB 1383 RESPONSIBILITIES
December 3, 2020 Page J-7 City of Cupertino/Recology Franchise Exhibit J
Topic/
Ref. # SB 1383 Requirement City Responsibility Contractor Responsibility
15. Procure Paper Products, and printing and
writing paper consistent with the
requirements of Section 22150-22154 of
the Public Contracts Code. These Paper
Products shall be Recyclable (as defined
in 16 C.F.R. 260.12). Jurisdiction shall
require all businesses that it purchases
Paper Products and printing/writing
paper from to certify minimum
percentage of postconsumer material in
the Paper Products (§18993.3).
The City is to update Environmentally
Preferable Purchasing Policy with
requirements set forth in SB 1383.
Contractor to develop or update existing Purchasing
Policy to meet minimum SB 1383 paper procurement
requirements.
Edible Food Recovery
16. Commencing January 1, 2022, annually
provide Tier One and Tier Two Edible
Food Generators with information about
the food recovery program, Generator
requirements, Food Recovery
Organizations and services, and edible
food source-reduction information
(§18985.2).
The City is to develop and distribute
annual outreach materials for
Commercial Edible Food Generators
businesses.
Contractor to post City-developed educational material
on its website annually or as requested by the City.
Contractor shall post material on its website within one
week of the City’s initial request and review and make
updates/changes to website on a monthly basis to
ensure accuracy of information.
This page intentionally left blank
EXHIBIT K:
GUARANTY AGREEMENT
EXHIBIT K
GUARANTY AGREEMENT
December 3, 2020 Page K-1 City of Cupertino/Recology Franchise Exhibit K
THIS GUARANTY (the "Guaranty") is given as of the [___] day of [________], 2020, by Recology Inc.,
("Guarantor"), to the CITY OF CUPERTINO ("CITY").
THIS GUARANTY is made with reference to the following facts and circumstances:
A. Recology South Bay (d/b/a Recology Cupertino) (“Contractor”) is a corporation organized under the
laws of the State of California, all of the issued and outstanding stock of which is owned by
Guarantor.
B. Guarantor is a corporation organized under the laws of the State of California.
C. Contractor and City have negotiated a Franchise Agreement for Recyclable Materials, Organic
Materials, and Solid Waste Collection, Recyclable Materials and Organic Materials Processing
Services, and Transport For Disposal (such agreement, as it may be amended, modified or waived
from time to time, the “Agreement”), under which Contractor is to provide specified services to
City. A copy of this Agreement is attached hereto and incorporated herein by this reference.
D. It is a requirement of the Agreement, and a condition to City's entering into the Agreement, that
Guarantor guaranty Contractor's performance of the Agreement.
E. Guarantor is providing this Guaranty to induce City to enter into the Agreement.
NOW, THEREFORE, in consideration of the foregoing, Guarantor agrees as follows:
1. Guaranty of the Agreement. Guarantor hereby irrevocably and unconditionally guarantees
to City the complete and timely performance, satisfaction and observation by Contractor of
each and every term and condition of the Agreement which Contractor is required to perform,
satisfy or observe. In the event that Contractor fails to perform, satisfy or observe any of the
terms or conditions of the Agreement, Guarantor will promptly and fully perform, satisfy or
observe them in the place of the Contractor. Guarantor hereby guarantees prompt payment
to City of each and every sum due from Contractor to City under the Agreement, as and when
due from time to time, and the prompt performance of every other task and duty required to
be performed by the Contractor under the Agreement.
2. Guarantor’s Obligations Are Absolute. The obligations of the Guarantor hereunder are
direct, immediate, absolute, continuing, unconditional and unlimited and, with respect to any
payment obligation of Contractor under the Agreement, shall constitute a guarantee of
payment and not of collection, and are not conditioned upon the genuineness, validity,
regularity or enforceability of the Agreement.
3. Waivers and Subordination. The Guarantor shall have no right to terminate this Guaranty or
to be released, relieved, exonerated or discharged from its obligations under Section 1 hereof
for any reason whatsoever, including, without limitation: (1) the insolvency, bankruptcy,
reorganization or cessation of existence of the Contractor; (2) any amendment, modification
or waiver of any provision of the Agreement or the extension of its Term; (3) the actual or
purported rejection of the Agreement by a trustee in bankruptcy, or any limitation on any
claim in bankruptcy resulting from the actual or purported termination of the Agreement; (4)
any waiver, extension, release or modification with respect to any of the obligations of the
EXHIBIT K
GUARANTY AGREEMENT
December 3, 2020 Page K-2 City of Cupertino/Recology Franchise Exhibit K
Agreement guaranteed hereunder or the impairment or suspension of any of City's rights or
remedies against Contractor; or (5) any merger or consolidation of the Contractor with any
other organization, or any sale, lease or transfer of any or all the assets of the Contractor.
The Guarantor hereby waives any and all rights, benefits and defenses under California Civil
Code Sections 2809, 2815, 2819, 2845, 2849 and 2850, and all other rights permitted to be
waived by Section 2856(a) including, without limitation, the right to require City to (a) proceed
against Contractor, (b) proceed against or exhaust any security or collateral City may hold now
or hereafter hold, or (c) pursue any other right or remedy for Guarantor’s benefit, and agree
that City may proceed against Guarantor for the obligations gua ranteed herein without taking
any action against Contractor or any other guarantor or pledgor and without proceeding
against or exhausting any security or collateral City may hold now or hereafter hold. City may
unqualifiedly exercise in its sole discretion any or all rights and remedies available to it against
Contractor or any other guarantor or pledgor without impairing City’s rights and remedies in
enforcing this Guarantee.
The Guarantor hereby waives and agrees to waive at any future time at the request of City,
to the extent now or then permitted by applicable law, any and all rights which the Guarantor
may have or which at any time hereafter may be conferred upon it, by statute, regulation or
otherwise, to avoid any of its obligations under, or to terminate, cancel, quit or surrender this
Guaranty. Without limiting the generality of the foregoing, it is agreed that the occurrence
of any one or more of the following shall not affect the liability of the Guarantor hereunder:
(a) at any time or from time to time, without notice to the Guarantor, the time for Contractor's
performance of or compliance with any of its obligations under the Agreement is extended,
or such performance or compliance is waived; (b) the Agreement is modified or amended in
any respect; (c) any other indemnification with respect to Contractor's obligations under the
Agreement or any security therefore is released or exchanged in whole or in part or otherwise
dealt with; (d) any assignment of the Agreement is effected which does not require City's
approval; or (e) any termination or suspension of the Agreement arising by reason of a default
by Contractor.
The Guarantor hereby expressly waives diligence, presentment, demand for payment or
performance, protest and all notices whatsoever, including, but not limited to, notices of non-
payment or non-performance, notices of protest, notices of any breach or default, and notices
of acceptance of this Guaranty. If all or any portion of the obligations guaranteed hereunder
are paid or performed, Guarantor’s obligations hereunder shall continue and remain in full
force and effect in the event that all or any part of such payment or performance is avoided
or recovered directly or indirectly from City as a preference, fraudulent transfer or otherwise,
irrespective of (a) any notice of revocation given by Guarantor or Contractor prior to such
avoidance or recovery, or (b) payment in full of any obligations then outstanding.
The Guarantor expressly subordinates and waives its rights to subrogation, reimbursement,
contribution or indemnity with respect to performance by Guarantor of the obligations of
Contractor guaranteed hereby, until such time as City receives payment or performance in
full of all such obligations.
EXHIBIT K
GUARANTY AGREEMENT
December 3, 2020 Page K-3 City of Cupertino/Recology Franchise Exhibit K
4. Term. This Guaranty is not limited to any period of time, but shall continue in full force and
effect until all of the terms and conditions of the Agreement have been fully performed by
Contractor, and Guarantor shall remain fully responsible under this Guaranty without regard
to the acceptance by City of any performance bond or other collateral to assure the
performance of Contractor's obligations under the Agreement. Guarantor shall not be
released of its obligations hereunder so long as there is any claim by City against Contractor
arising out of the Agreement based on Contractor's failure to perform which has not been
settled or discharged.
5. No Waivers by City. No delay on the part of City in exercising any rights under this Guaranty
or failure to exercise such rights shall operate as a waiver of such rights. No notice to or
demand on Guarantor shall be a waiver of any obligation of Guarantor or right of City to take
other or further action without notice or demand. No modification or waiver by City of any
of the provisions of this Guaranty shall be effective unless it is in writing and signed by City
and by Guarantor, nor shall any waiver by City be effective except in the specific instance or
matter for which it is given.
6. Attorney's Fees. In addition to the amounts guaranteed under this Guaranty, Guarantor
agrees to pay actual attorney's fees and all other costs and expenses incurred by City in
enforcing this Guaranty, or in any action or proceeding arising out of or relating to this
Guaranty, including any action instituted to determine the respective rights and obligations
of the parties hereunder.
7. Governing Law; Jurisdiction. This Guaranty is and shall be deemed to be a contract entered
into in and pursuant to the laws of the State of California and shall be governed and construed
in accordance with the laws of California without regard to its conflicts of laws rules for all
purposes, including, but not limited to, matters of construction, validity and performance.
Guarantor agrees that any action brought by City to enforce this Guaranty may be brought in
any court of the State of California and Guarantor consents to personal jurisdiction over it by
such courts. Guarantor appoints the following person as its agent for service of process in
California:
Roxanne L. Frye
Recology Inc.
50 California Street, 24th Floor
San Francisco, CA 94111
8. Severability. If any portion of this Guaranty is held to be invalid or unenforceable, such
invalidity shall have no effect upon the remaining portions of this Guaranty, which shall be
severable and continue in full force and effect.
9. Binding on Successors. This Guaranty shall inure to the benefit of City and its successors and
shall be binding upon Guarantor and its successors, including a successor entity formed by a
merger or consolidation, a transferee of substantially all of its assets, and its shareholders in
the event of its dissolution or insolvency.
EXHIBIT K
GUARANTY AGREEMENT
December 3, 2020 Page K-4 City of Cupertino/Recology Franchise Exhibit K
10. Authority. Guarantor represents and warrants that it has the corporate power to give this
guaranty, that its execution of this Guaranty has been authorized by all necessary action
under its Articles of Incorporation and by-laws, and that the person signing this Guaranty on
its behalf has authority to do so.
11. Notices. Notice shall be given in writing, deposited in the U.S. mail, registered or certified,
first class postage prepaid, addressed as follows:
To City: City of Cupertino
Attention: City Manager
10300 Torre Avenue
Cupertino, California, 95014,
To Guarantor: Recology Inc.
Attn: Legal Department
50 California Street, 24th Floor
San Francisco, CA 94111
The parties may change the address to which notice is to be sent by giving the other party
notice of the change as provided in this Section.
IN WITNESS WHEREOF, Guarantor has executed this Guaranty on the day and year first above written.
By:
Michael J. Sangiacomo
Chief Executive Officer
By:
Cary Chen
Corporate Secretary
EXHIBIT L:
DIVERSION DATA
EXHIBIT L
DIVERSION DATA
December 3, 2020 Page L-1 City of Cupertino/Recology Franchise Exhibit L
The attached is a sample of the type and format for information that Contractor will be providing the City
in conjunction with Section 5.11 of this Agreement. Confidential account information has been removed
from the example.
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Recology - Agreement 1-29-2021 for Execution
Final Audit Report 2021-01-30
Created:2021-01-29
By:Julia Kinst (juliak@cupertino.org)
Status:Signed
Transaction ID:CBJCHBCAABAAqFPbpjlkWiHjqBX6Z61EokMedKxb23Ho
"Recology - Agreement 1-29-2021 for Execution" History
Document created by Julia Kinst (juliak@cupertino.org)
2021-01-29 - 6:49:53 PM GMT- IP address: 64.178.242.15
Document emailed to Bryce Giddens (bgiddens@recology.com) for approval
2021-01-29 - 6:54:01 PM GMT
Document shared with Araceli Alejandre (aracelia@cupertino.org)
2021-01-29 - 7:14:44 PM GMT- IP address: 64.178.242.15
Email viewed by Bryce Giddens (bgiddens@recology.com)
2021-01-29 - 8:44:55 PM GMT- IP address: 50.200.34.85
Document approved by Bryce Giddens (bgiddens@recology.com)
Approval Date: 2021-01-29 - 8:59:03 PM GMT - Time Source: server- IP address: 50.200.34.85
Document emailed to Salvatore M. Coniglio (sconiglio@recology.com) for signature
2021-01-29 - 8:59:09 PM GMT
Email viewed by Salvatore M. Coniglio (sconiglio@recology.com)
2021-01-29 - 10:18:30 PM GMT- IP address: 174.222.132.169
Document e-signed by Salvatore M. Coniglio (sconiglio@recology.com)
Signature Date: 2021-01-30 - 1:01:14 AM GMT - Time Source: server- IP address: 67.164.111.88
Document emailed to Cary Chen (cchen@recology.com) for signature
2021-01-30 - 1:01:20 AM GMT
Email viewed by Cary Chen (cchen@recology.com)
2021-01-30 - 1:18:38 AM GMT- IP address: 50.200.34.87
Document e-signed by Cary Chen (cchen@recology.com)
Signature Date: 2021-01-30 - 1:19:10 AM GMT - Time Source: server- IP address: 50.200.34.87
Document emailed to Heather M. Minner (minner@smwlaw.com) for signature
2021-01-30 - 1:19:15 AM GMT
Email viewed by Heather M. Minner (minner@smwlaw.com)
2021-01-30 - 1:24:08 AM GMT- IP address: 45.41.142.85
Document e-signed by Heather M. Minner (minner@smwlaw.com)
Signature Date: 2021-01-30 - 1:24:43 AM GMT - Time Source: server- IP address: 52.39.49.65
Document emailed to Roger Lee (rogerl@cupertino.org) for signature
2021-01-30 - 1:24:49 AM GMT
Email viewed by Roger Lee (rogerl@cupertino.org)
2021-01-30 - 1:42:43 AM GMT- IP address: 24.4.161.237
Document e-signed by Roger Lee (rogerl@cupertino.org)
Signature Date: 2021-01-30 - 1:43:34 AM GMT - Time Source: server- IP address: 24.4.161.237
Document emailed to Darcy Paul (dpaul@cupertino.org) for signature
2021-01-30 - 1:43:39 AM GMT
Email viewed by Darcy Paul (dpaul@cupertino.org)
2021-01-30 - 1:44:40 AM GMT- IP address: 104.47.73.126
Document e-signed by Darcy Paul (dpaul@cupertino.org)
Signature Date: 2021-01-30 - 1:49:39 AM GMT - Time Source: server- IP address: 24.4.30.36
Document emailed to Kirsten Squarcia (kirstens@cupertino.org) for signature
2021-01-30 - 1:49:45 AM GMT
Email viewed by Kirsten Squarcia (kirstens@cupertino.org)
2021-01-30 - 3:23:45 AM GMT- IP address: 69.110.137.176
Document e-signed by Kirsten Squarcia (kirstens@cupertino.org)
Signature Date: 2021-01-30 - 3:24:00 AM GMT - Time Source: server- IP address: 69.110.137.176
Agreement completed.
2021-01-30 - 3:24:00 AM GMT