Item 20 - Solid Waste Services Proposers

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RFP No. 20-097 - Collection and Handling of Solid Waste Generated, Produced and/or Accumulated in the City of Santa Ana 24 appropriate, as the sole discretion standard would allow City to refuse an adjustment. Lastly, as matters of diversion calculations and factors are of a technical analysis, it would again be advantageous to both parties to maintain review at an administrative level. (New Section) 4.6.8– SB 1383 Regulations The parties acknowledge that as of the Effective Date, regulations adopted pursuant to SB 1383 have not been adopted, requirements or compliance deadlines may change, and that SB 1383 or the regulations may be amended from time to time during the Term. Upon the request of either Party, the parties agree to meet and confer and negotiate in good faith to revise Agreement provisions related to SB 1383, including but not limited to compliance deadline dates, in order to accurately reflect the requirements of SB 1383 and its regulations, as finally adopted, or as they may be amended from time to time. Rationale: At this time, there is uncertainty when SB 1383 regulations will be adopted, and if the January 1, 2021 effective date and other compliance deadlines will be extended. This new subsection is intended to assure that the provisions of the franchise agreement accurately conform to final SB 1383 requirements. Section 6.4 – Method of Adjustments Contractor proposes an alternative approach to the annual rate adjustment methodology based on recent and successful experiences with other municipalities in the state, including but not limited to the City of Mission Viejo. In each of the tables, additional cost components for Recyclable Materials processing and Organic Waste processing would be included and adjusted on the basis of actual changes in tipping fees at the facilities utilized. Rationale: This revision provides significant advantages to both parties as it would substantially reduce the need for a request for an extraordinary adjustment. Further, to the extent that cost reductions can be obtained in the future (e.g. increases in Recyclable Materials commodity values or the development of a local Organic Waste processing capability by Orange County Waste and Recycling), reductions can be directly received by ratepayers. Section 6.5 – Extraordinary Adjustments Contractor or City may request an adjustment to maximum rates at reasonable times other than that allowed under Section 6.3 in the event of extraordinary changes in the cost of providing service under this Agreement, , including changes in a direct per ton fee assessed at the Disposal Site or Processing Site by federal, state or local regulatory agencies, a Change in Law, a City-directed change in scope, pandemics and natural disasters, subcontractor costs (including subcontractors directly contracted with City), wages, or fluctuations in unrecovered billings. Such changes shall not include changes in the market value of Recyclables from the values assumed in Contractor’s Proposal, inaccurate estimates by the Contractor of its proposed cost of operations, unionization of Contractor’s work force, or change in wage rates or employee benefits. Contractor may request an extraordinary adjustment based on changes in a direct per ton fee assessed at the Disposal Site by federal, state or local regulatory agencies after the effective date. Extraordinary rate adjustments shall only be effective after approval by City Council in compliance with California Constitution Article XIIID (Proposition 218) and the Proposition 218 Omnibus Implementation Act (Govt. Code Sections 53750 et. seq.) and may not be applied retroactively. For each request for an adjustment to the maximum rates that Contractor may charge Customers brought pursuant to this section, Contractor shall prepare a schedule documenting the extraordinary costs. Such request shall be prepared in a form acceptable to City with support for assumptions made by Contractor in Attachment 6 6 - 9