Item 20 - Solid Waste Services Proposers

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Attachment 5 Proposal Summary – REPUBLIC SERVICES (Republic) February 9, 2021 5 ‐ 7 City of Santa Ana 8. 6.0 Company Compensation and Rates a. 6.4 Method of Adjustments ‐ Republic requests amendments to this Article as follows: i) Annual rate adjustment calculations, if submitted timely, should be automatically administratively approved. ii) City should not unreasonably reject, modify or delay a rate adjustment request iii) Contractor requests an Annual Escalator Index that more closely reflects the actual annual cost increases realized by the Contractor, such as Water Sewer Trash or Garbage Trash. 11/6/20 Response ‐ While Republic is willing to accept the use of the City’s proposed CPI index, we believe it is important for the annual escalator to reflect the actual cost of wage & benefits, parts, administrative items, etc. While we are not completely tied to the CPI‐WST, this index has been aligned with the true cost increases of providing services. In either case, we believe it benefits the City and their Contractor to agree upon an index that may include minimums and maximums to keep pace with anticipated cost increases. Therefore, should the City desire to utilize the CPI index included in the RFP we would be in agreement with that as long as equitable minimums and maximums can be agreed upon b. 6.4.7 New Article – Rate Adjustments Due to Change in Applicable Law ‐ Republic requests the following new Article be added: i) In addition to the foregoing adjustments, Contractor shall be entitled to an adjustment of rates in the event of a Change in Applicable Law. “Change in Applicable Law” means, without limitation, the enactment, issuance, adoption, repeal, amendment or modification or other changes in federal, State or local statute, ordinance or regulation, or a regulatory agency or other government body establishing or interpreting a rule, regulation or statute; or a judicial decision interpreting a law, statute, ordinance or regulation affecting Franchisee’s performance of Services pursuant to this Franchise Agreement, including the imposition of new or amended Diversion programs or requirements on City or Franchisee, or the imposition of new or increased government fees, taxes or assessments. Any new or increased fee, tax, or assessment shall be a pass through and shall be included in the rates on the effective date of such fees, tax or assessment. c. 6.5 Extraordinary Adjustments ‐ Republic requests amendment to this Article: i) Rate adjustments can be requested for significant cost increases, including changes in recyclable materials processing and/or organic materials processing costs. 9. 10.0 City’s Right to Perform Service ‐ Republic requests Amendments to this Article: i) Remove language that allows the City to take possession of contractor’s land, property and equipment ii) Remove language that allows the City to purchase or through the exercise of eminent domain take possession of Contractor’s land, property and equipment. Republic does not take exception to the following contract provisions, however, would like to discuss them further during contract negotiations: Proposal question ‐ Under your company’s proposed exceptions to the agreement there are a significant number of items under the heading of “Republic does not take exception to the following contract provisions, however, would like to discuss them further during contract negotiations.” Is this to mean that your company accepts the language as included in the agreement, but proposes that the City consider your stated revisions? 11/6/2020 Response ‐ Confirmed, Republic accepts the language as included in the agreement and does not consider these items to be impediments to entering into a contract. We removed our discussion item related to Article 9.0 Indemnification. We would however like to discuss the remaining language and potential modifications with the City. 1. 2.11 Title to Solid Waste ‐ Republic requests that “Title passes to the Contractor when it is collected”, not when it is set out for collection. 2. 4.5.2 Household Hazardous Waste Drop‐Off Events ‐ Republic requests that we utilize our two existing OCWR HHW drop‐off locations in Anaheim and Huntington Beach to satisfy the provisions of this Article, as outlined in our proposal. 3. 5.1.1 Residential Curbside Service Unit Billing ‐ Republic understands this section to mean that Contactor will be paid based on the total number of Residential Curbside Service Units billed by the City for curbside service during that month, less City fees. 4. 9.0 Indemnification ‐ Republic requests the following changes to Article 9 – see below 1. Article 9, section 9.1 at pp. 115‐116 of the Draft Agreement as follows: 9.1 Indemnification