2001/02/13 City Council Resolution (5)RESOLUTION NO. 2001 -32
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK
APPROVING SELECTION OF A CONTRACTOR and AWARDING A CONTRACT
To NORTH BAY CORPORATION
For SOLID WASTE SERVICES
WHEREAS, the existing contract with Empire Waste Management for Solid
Waste Services expires June 30, 2001; and
WHEREAS, the City of Rohnert Park needs to establish a new Contract effective
July 1, 2001; and
WHEREAS, Requests for Proposals for Solid Waste Services have been solicited
and Proposals thoroughly reviewed.
THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert
Park that NORTH BAY CORPORATION is selected as the Contractor for Solid Waste
Services.
BE IT FURTHER RESOLVED that the City Manager is hereby authorized to
execute the Contract in the Request for Proposals as amended in Addenda 1 and 3 and to
approve any non- substantive changes necessary in the Contract for and on behalf of the
City of Rohnert Park.
DULY AND REGULARLY ADOPTED this 13th day of February. 2001.
CITY OF ROHNERT PARK
CITY
!-R ®HNE� 1
ATTEST:
D uty ' y Jerk
FLORES: AYE REILLY: AYE SPIRO: AYE VIDAK- MARTINEZ: AYE MACKENZIE: AYE
AYES: (5) NOES: (0) ABSENT: (0) ABSTAIN: (0)
Addendum 1
November 9, 2000
City of Rohnert Park Questions Regarding RFP and Draft Agreement
• Major appliances with freon
$
20.00 each
• Major appliances without freon
$
10.00 each
• Tires:
• Passenger
$
2.00 each
• Truck
$
7.00 each
• Tractor
$
20.00 each
• Heavy Equipment
$
150.00 each
• Tree Stumps:
• 8" to 18"
$
25.75 each
• 18" to 30"
$
72.25 each
• Greater than 30"
$
154.50 each
The current tipping fee at the Santa Rosa Subregional Wastewater Treatment Plant:
• Food Waste: $ 27.00 per ton (should be used in costs)
S. Organic Material (Food Waste) Collection, Page 13, 28, and Attachment 6L. RFP page 28
states that information on the pilot compost program is included in Attachment 2. Please
indicate where this information is located What percentage of restaurants and businesses
are participating in this pilot program? Page 13 – What is the rate for disposal of organics
at the Santa Rosa Wastewater Treatment Plant?
Information regarding the Organic Material (Food Waste) pilot program is provided in
the attached excel spreadsheet. Table A describes the service level for the different
businesses and Table B describes the tonnage.
Currently the pilot program is tipping material at the Santa Rosa Wastewater Treatment
Plant for no charge. Assume a $27.00 per ton tipping fee in your proposal. If you your
company uses another processing location for the organic materials, please include costs
for such option in your proposal.
6. In determining the Contractor's payment for service, what if Gross Revenues collected by the
City are less than the Contractors request for payment?
Article 8.6, Variances from Projections (retitled to be Contractor's Payment
Reconciliation) was excluded from the Draft Agreement. The following is the language
that should be included to address Contractor's payment for services:
8.6 CONTRACTOR'S PAYMENT RECONCILIATION
The City intends to restructure the rates charged-to customers for services under this
Agreement in a manner that encourages waste diversion. Because the City recognizes
' that it will have to make certain assumptions about customer behavior in structuring these
rates and the actual behavior may be different than assumed, the City intends to make
adjustments in the-calculation-of the Contractor's Payment for- Services -for years -three —-
Addendum 1
November 9, 2000
City of Rohnert Park Questions Regarding RFP and Draft Agreement
through seven of the initial term of the Agreement for differences between the actual
Contractor's Payment for Services and the not to exceed amounts provided for in this
Agreement during the first two years. Thereafter, it is assumed that any differences will
be minimal and it will not perform such adjustments in subsequent years.
If the sum of the actual Payment for Services for each of the first two years of this
Agreement is estimated by the City in Year 2 to be less than the not to exceed amounts
for the first two years of this Agreement as stated in Articles 8.2.1 and 8.2.2, respectively,
then Contractor's Payment for Services for the following five years shall be increased by
the total amount of the estimated difference in the first two years of this Agreement
divided by 5. For example, should the not to exceed amount in Article 8.2.1 be
$3,000,000, and the not to exceed amount in Article 8.2.2 be $3,050,000, and should the
actual Payment for Services be $2,900,000 and the estimated payment be $3,000,000,
respectively, then the shortfall would be $150,000 and the Contractor's Payment for
Services as determined by Articles 8.3 and 8.4.3 of this Agreement for each of the
following five years shall be increased by $30,000.
No adjustment shall be made to Contractor's Payment for Services for differences
between the actual amounts paid and the not to exceed amounts calculated in accordance
with this Agreement in subsequent years.
7. Our understanding is the best a company can achieve, even if revenue billed exceeds the
required revenue, is the required revenue. What incentives are being offered by the City to
the contractor to achieve revenues which exceed this minimum required revenue?
The company will maintain the operating ratio. The City has included a recycling
incentive, which is described in Question 13. Proposers are encouraged to submit
additional incentive ideas as part of your proposal.
8. Can the City provide a history of gross revenues collected and amounts dispersed to
Contractor
Revenue
Type
Residential
Commercial
Total
Fiscal Year
1997/1998
07/1/97 — 06/30/98
$ 1,029,324
$ 1,948,703
$ 2,978,027
Fiscal Year
1998/1999
07/1/98 — 06/30/99
$ 1,085,730
$ 2,103,870
$ 3,189,600
Fiscal Year
1999/2000
07/1/99 — 06/30/00
$ 1,154,838
$ 2,217,600
$ 3,372,438
Less Deductions:
10% Franchise Fee ($ 297,803) ($ 318,960) ($ 337,244)
3% City Billing Fee ($ 89,341) ($ 95,688) ($ 101,173)
Addendum 3
November 22, 2000
City of Rohnert Park Questions Regarding the RFP and Draft Agreement
The City of Rohnert Park (City) has responded to each of the questions it received and provided
information regarding numbers and costs based on readily available information when
appropriate. However, it is each proposer's responsibility to independently satisfy itself
regarding the accuracy of this data and proposers /contractors shall hold the City of Rohnert Park
and its agents, officers, and employees harmless from and against any and all claims asserted or
liability established for damages, which arise from or are connected with or are caused or
claimed to be caused by the acts or omissions of the City with regard to information stated
below.
QUESTIONS AND ANSWERS:
1. How will adjustments in Contractor's Payment for Services be adjusted for new construction
of residential complexes and commercial businesses?
The following changes have been made to Article 8 of the Draft Agreement. Note added
text appears in bold font:
8.1 GENERAL
City shall establish rates for Refuse collection pursuant to Section 8. 12.2.60 of the
Rohnert Park Municipal Code. City shall establish rates at an amount reasonably
estimated to produce revenues sufficient to provide payment to the Contractor as
provided for in this Article 8. Contractor shall be paid ("Contractor's Payment for
Services') for Collection Services described in Article 5, from the Gross Revenues billed
to the customers by the City, at rates established by the City Council. Payment for
Services shall be the full, entire and complete payment due to the Contractor pursuant to
this Agreement for all labor, equipment materials and supplies, taxes, insurance, bonds
overhead, operations profit, and all other things necessary to perform all Collection
Services required by this Agreement in the manner and at the times prescribed.
Payment for Services to be disbursed to Contractor during any rate year shall be
the lesser of Gross Revenues (less bad debts) billed by City less City costs (as prescribed
in Articles 6, 7 and 8) for that fiscal year, or the Maximum Allowable Payment for
Services for that rate year. Maximum Allowable Payment for Services means the
maximum amount that may be disbursed to Contractor for each fiscal year, and is
determined as set forth in this Article 8, Sections 8.2 through 8.5 for each specific rate
year. Payment for Services shall be disbursed to Contractor each month on the tenth
(10th) day of the month, or the next succeeding business day if the tenth of the month
falls on a weekend or City holiday, for services performed in the previous month.
8.1.1 CONTRACTOR'S PAYMENT FOR SERVICES
The Contractor's Maximum Allowable Payment for Services calculated for
each Rate Year pursuant to this Article 8
for in Sections 8.1.2 for new construction
provided for in Section 8.8.
shall not be adjusted, except as provided
or demolition of existing structures or' as
Addendum 3
November 22, 2000
City of Rohnert Park Questions Regarding the RFP and Draft Agreement
8.1.2 ADJUSTMENTS TO CONTRACTOR'S MAxuvWM ALLOWABLE PAYMENT FOR
SERVICES
City shall adjust Contractor's Maximum Allowable Payment for Services for
new construction or demolition of residential or commercial buildings that receive
solid waste services. The adjustment for new construction of a building shall be
made during. the first month when all of the following have occurred: (i) a
certificate of occupancy has been issued by the Building Department for the
building; (ii) the new building has been fully occupied; and (iii) full refuse service
has been established and billed by the City for the entire building. In the case of
Multi- Family Complexes, all units do not have to be occupied for the adjustment to
occur, as long as full refuse and recycling service for the entire complex have been
established and billed by the City. The adjustment for demolition of a building shall
occur in the month the building is demolished. No additional adjustments to
Contractor's Maximum Allowable Payment for Services shall be made for
subsequent changes in refuse or recycling service levels to new or existing buildings.
Monthly, City shall determine whether residential or commercial buildings
have been constructed or demolished. If construction, or demolition without
replacement, has occurred, City shall calculate the total billings attributable to the
constructed or demolished buildings. Contractor's Maximum Allowable Payment
for the Rate Year in which City begins or ceases to bill said building for refuse
collection services, shall be adjusted for the months remaining to reflect the increase
or decrease in Gross Revenue, less City billing costs and fees. Thereafter,
Contractor's monthly Payment for Services shall include the additional revenue
calculated by the adjustment.
For example, if Contractor's Maximum Allowable Payment for Services is
$3,172,438 and 100 new single - family units are occupied on July 1 and their total
billings (less bad debt), net of City services and fees, equals $1,736 per month; then,
the Contractor's Maximum Allowable Payment for Services would increase during
the remaining six months by $10,416 ($1,736 multiplied by 6). Thereafter, the total
Contractor's Maximum Payment for Services would be $10,416 plus the original
$3,172,438 resulting in an adjusted Contractor's Maximum Allow Payment for
services of $3,182,854. Conversely, if 100 single- family units were demolished on
July 1 and their total billings (less bad debt), net of City services and fees, equals
$1,736 per month; then the Contractor's Maximum Allowable Payment for Services
would decrease during the remaining six months by $10,416 and the adjusted
Contractor's Maximum Allowable Payment for Services would equal $3,162,022
($3,172,438 less $10,416).
8.2 PAYMENT FOR SERVICES IN RATE YEARS ONE AND TWO
Except as provided in Section 8.1.2 and 8.8 of this Agreement, Contractor's
Maximum Allowable Payment for Services provided for in this Section 8.2 shall be fixed
Addendum 3
November 22, 2000
City of Rohnert Park Questions Regarding the RFP and Draft Agreement
for both years and shall not be increased to reflect increases in costs above those
anticipated by Contractor, nor decreased to reflect decreases in costs below those
anticipated by Contractor.
8.2.1 CONTRACTOR'S MAXIMUM ALLOWABLE PAYMENT FOR SERVICES IN RATE YEAR
ONE
For the initial twelve (12) months of this Agreement (Rate Year One from July 1,
2001, to June 30, 2002), Contractor's Payment for Services shall be an amount equal to
the Gross Revenue (less bad debts) billed to customers by the City at the rates established
pursuant to Section 8. 12.260 of the Rohnert Park Municipal Code, less the sum of (i) the
amount necessary to reimburse the City for providing billing services under this
Agreement; and (ii) any and all fees imposed pursuant to Article 7 of this Agreement,
including but not limited to the Franchise Fee in Section 7.1, but, in no event shall the
Contractor's Payment for Services for Rate Year One exceed $ . except as
provided for in Sections 8.1.2 and 8.8.
8.2.2 CONTRACTOR'S MAXIMUM ALLOWABLE PAYMFNT FOR SERVICES iN RATE YEAR
TWO
For the second twelve (12) months of this Agreement (Rate Year Two from July
1, 2002, to June 30, 2003), Contractor's Payment for Services shall be an amount equal to
the Gross Revenue (less any bad debts) billed to customers by the City at the rates
established pursuant to Section 8.12.260 of the Rohnert Park Municipal Code, less the
sum of (i) the amount necessary to reimburse the City for providing billing services under
this Agreement; and (ii) any and all fees imposed pursuant to Article 7 of this Agreement,
including but not limited to the Franchise Fee in Section 7.1, but, in no event shall the
Contractor's Payment for Services for Rate Year Two exceed $ , except as
provided for in Sections 8.1.2 and 8.8.
8.3.3 CONTRACTOR'S MAXIMUM ALLOWABLE PAYMENT FOR SERVICES IN RATE
YEAR THREE
Contractor's Payment for Services for Rate Year Three (from July 1, 2003,
to June 30, 2004), shall be an amount equal to the Gross Revenues (less bad debts)
billed to customers by the City, at rates established pursuant to Section 8.12.260 of
the Rohnert Park Municipal Code, less the sum of (i) the amount necessary to
reimburse City for providing billing and some customer services under this
Agreement; and (ii) any and all fees imposed pursuant to Article 7 of this
Agreement, including but not limited to the Franchise Fee described in Section 7.1,
Contractor's Payment for Services shall not exceed the Maximum Allowable
Payment of Services for Rate Year Three (as determined in Article 8.3.2), which
shall include any adjustments provided for in Article 8.1.2.
Addendum 3
November 22, 2000
City of Rohnert Park Questions Regarding the RFP and Draft Agreement
8.4.1 CONTRACTOR'S MAXIMUM ALLOWABLE PAYMENT FOR SERVICES FOR RATE
YEAR FouR
Contractor's Payment for Services for Rate Year Four (from July 1, 2004, to June
30, 2005) shall be an amount equal to the Gross Revenues (less bad debts) billed to
customers by the City, at rates established pursuant to Section 8.12.260 of the Rohnert
Park Municipal Code, less the sum of (i) the amount necessary to reimburse City for
providing billing and some customer services under this Agreement; and (ii) any and all
fees imposed pursuant to Article 7 of this Agreement, including but not limited to the
Franchise Fee described in Section 7.1, but, in no event shall Contractor's Payment for
Services exceed the Maximum Allowable Payment of Services for Rate Year Four,
which shall include any adjustments provided for in Sections 8.1.2 and 8.8. Each of
these amounts shall be calculated as follows:... [See Draft Agreement for remainder of
this clause which remains as originally written]
8.4.2 CONTRACTOR'S MAXIMUM ALLOWABLE PAYMENT FOR SERVICES FOR RATE
YEAR FIVE
Contractor's Payment for Services for Rate Year Five (from July 1, 2005, to June
30, 2006) shall be an amount equal to the Gross Revenues (less bad debts) billed to
customers by the City, at rates established pursuant to Section 8.12.260 of the Rohnert
Park Municipal Code, less the sum of (i) the amount necessary to reimburse City for
providing billing and some customer services under this Agreement; and (ii) any and all
fees imposed pursuant to Article 7 of this Agreement, including but not limited to the
Franchise Fee described in Section 7.1, but, in no event shall Contractor's Payment for
Services exceed the Maximum Allowable Payment of Services for Rate Year Five, which
shall include any adjustments provided for in Sections 8.1.2 and 8.8.
8.4.3 CONTRACTOR'S MAXIMUM ALLOWABLE PAYMENT FOR SERVICES FOR RATE
YEAR SIX
Contractor's Payment for Services for Rate Year Six (from July 1, 2006, to June
30, 2007) shall be an amount equal to the Gross Revenues (less bad debts) billed to
customers by the City, at rates established pursuant to Section 8.12.260 of the Rohnert
Park Municipal Code, less the sum of (i) the amount necessary to reimburse City for
providing billing and some customer services under this Agreement; and (ii) any and all
fees imposed pursuant to Article 7 of this Agreement, including but not limited to the
Franchise Fee described in Section 7.1, but, in no event shall- Contractor's Payment for
Services exceed the Maximum Allowable Payment of Services for Rate Year Six, which
includes any adjustments allowed in Sections 8.1.2 and 8.8.
8.4.4 CONTRACTOR'S MAXIMUM ALLOWABLE Payment for Services for Rate Year
Seven
Contractor's Payment for Services for Rate Year Seven (from July 1, 2007, to
June 30, 2008) shall be an amount equal to the Gross Revenues (less bad debts) billed to
customers by the City, at rates established pursuant to Section 8.12.260 of the Rohnert
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Addendum 3
November 22, 2000
City of Rohnert Park Questions Regarding the RFP and Draft Agreement
Park Municipal Code, less the sum of (i) the amount necessary to reimburse City for
providing billing and some customer services under this Agreement; and (ii) any and all
fees imposed pursuant to Article 7 of this Agreement, including but not limited to the
Franchise Fee described in Section 7.1, but, in no event shall Contractor's. Payment for
Services exceed the Maximum Allowable Payment of Services for Rate Year Seven
which shall include any adjustments provided for in Sections 8.1.2 and 8.8.
8.5.1 CONTRACTOR'S MAXIMUM ALLOWABLE PAYMENT FOR SERVICES FOR RATE
YEAR EIGHT
Contractor's Payment for Services for Rate Year Eight (from July 1, 2008, to June
30, 2009) shall be an amount equal to the Gross Revenues (less bad debts) billed to
customers by the City, at rates established pursuant to Section 8.12.260 of the Rohnert
Park Municipal Code, less the sum of (i) the amount necessary to reimburse City for
providing billing and some customer services under this Agreement; and (ii) any and all
fees imposed pursuant to Article 7 of this Agreement, including but not limited to the
Franchise Fee described in Section 7. 1, but, in no event shall Contractor's Payment for
Services exceed the Maximum Allowable Payment of Services for Rate Year Eight,
which shall include any adjustments provided for in Sections 8.1.2 and Section 8.8.
8.5.2 CONTRACTOR'S MAXTMOM ALLOWABLE PAYMENT FOR SERVICES FOR RATE
YEAR NINE
Contractor's Payment for Services for Rate Year Nine (from July 1, 2009, to June
30, 2010) shall be an amount equal to the Gross Revenues (less bad debts) billed to
customers by the City, at rates established pursuant to Section 8.12.260 of the Rohnert
Park Municipal Code, less the sum of (i) the amount necessary to reimburse City for
providing billing and some customer services under this Agreement; and (ii) any and all
fees imposed pursuant to Article 7 of this Agreement, including but not limited to the
Franchise Fee described in Section 7.1, but, in no event shall Contractor's Payment for
Services exceed the Maximum Allowable Payment of Services for Rate Year Nine,
which shall include any adjustments provided for in Sections 8.1.2 and 8.8.
8.5.3 CONTRACTOR'S MAXIMUM ALLOWABLE PAYMENT FOR SERVICES FOR RATE
YEAR TEN
Contractor's Payment for Services for Rate Year Ten (from July 1, 2010, to June
30, 2011) shall be an amount equal to the Gross Revenues (less bad debts) billed to
customers by the City, at rates established pursuant to Section 8.12.260 of the Rohnert
Park Municipal Code, less the sum of (i) the amount necessary to reimburse City for
providing billing and some customer services under this Agreement; and (ii) any and all
fees imposed pursuant to Article 7 of this Agreement, including but not limited to the .
Franchise Fee described in Section 7.1, but, in no event shall Contractor's Payment for
Services exceed the Maximum Allowable Payment of Services for Rate Year Ten, which
shall include any adjustments provided for in Article 8.1.2.