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 25 preparing the estimate. Contractor shall also submit a schedule showing how its total costs and total revenues have changed over the past three years for the services provided under this Agreement. Contractor shall provide to City a report of its annual revenues and expenses for the services provided in the City, and City shall have right to audit this information in connection with the City’s review of Contractor’s rate adjustment request. City shall review the Contractor’s request and when made in response to direct per ton fee assessed at the Disposal Site or Processing Site by federal, state or local regulatory agencies, the City, in Council’s reasonable judgment, shall make the final determination as to whether an adjustment to the maximum rates will be made, and, if an adjustment is permitted, the appropriate amount of the adjustment. When Contractor’s request is made for any other reason, the City shall review the Contractor’s request and, in the City Council’s sole judgment and absolute, unfettered discretion, make the final determination as to whether an adjustment to the maximum rates will be made, and, if an adjustment is permitted, the appropriate amount of the adjustment. conduct a duly-noticed public hearing as required by California Constitution Article XIIID (Proposition 218) and the Proposition 218 Omnibus Implementation Act (Govt. Code Sections 53750 et. seq.). If, after closing the public hearing, there is not a “majority protest” to the extraordinary adjustment, as defined in Proposition 218, the City may, in its sole judgment and absolute, unfettered discretion, make the final determination as to whether an adjustment to the maximum rates will be made, and, if an adjustment is permitted, the appropriate amount of the adjustment. City may consider increases or decreases in the Contractor’s total revenues and total cost of services when reviewing an extraordinary rate adjustment request. A rate adjustment request made in response to a new service requested by City will be determined in accordance with Section 2.10. City shall review the Contractor’s request and conduct a duly-noticed public hearing as required by California Constitution Article XIIID (Proposition 218) and the Proposition 218 Omnibus Implementation Act (Govt. Code Sections 53750 et. seq.). The City shall not be in default of this Agreement, if any rate adjustment is denied, or disallowed by operation of Applicable Law. Should a request to charge and/or increase its maximum rates is denied, or disallowed by operation of Applicable Law, Contractor shall reduce the maximum rates it charges Customers a corresponding amount, providing said denied or disallowed fees, Rates and/or charges are not related to the cost of providing service hereunder and had been incorporated in the maximum rates charged by Contractor to its Customers. In addition, Contractor will have the right, within thirty (30) days after notice of any such denial or disallowance of any increase to the charges and/or rates related to the costs of providing service hereunder, to request, in writing, that City negotiate in good faith regarding reductions in programs and services, to compensate for any negative impact from the denied or disallowed rate increase. If City fails to commence negotiations in good faith or negotiations are not completed within forty- five (45) days following the date of receipt of Contractor’s request, Contractor may terminate this Agreement no earlier than eighteen (18) months after written notice to City. Rationale: These revisions are to be considered in tandem with Contractor’s suggested approach to the annual rate adjustment methodology. These revisions are intended to streamline the process for making and reviewing a request, and to provide an appropriate standard of review when the request is based on a new or increased per ton fee. Lastly, the language provided has been derived from the recent agreement with the City of Mission Viejo. However, Waste Management is open to alternatives and looks forward to City input. Attachment 6 6 - 10