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HomeMy WebLinkAboutContract 28358-E2 CSC.No. 28358-E2 STATE OF TEXAS § COUNTIES OF TARRANT, § DENTON,PARKER AND WISE § SECOND EXTENSION AND RESTATEMENT OF THE CONTRACT FOR COLLECTION OF RESIDENTIAL GARBAGE,REFUSE AND BULKY WASTE, RECYCLABLES, CERTAIN COMMERCIAL SOLID WASTE,YARD WASTE, C&D AND LARGE BRUSH THIS SECOND EXTENSION AND RESTATEMENT CONTRACT ("Contract") is made and entered into by and between the City of Fort Worth, a home-rule municipal corporation in Tarrant, Denton, Parker and Wise Counties, Texas, acting herein by and through Valerie Washington, its duly authorized Assistant City Manager, hereinafter called "City", and Waste Management of Texas, Inc., a Texas corporation doing business in Texas, acting herein by and through Donald J. Smith,its duly authorized President, hereinafter called "Contractor." Whereas, on November 9, 2021, the City of Fort Worth authorized the execution of this Second Extension and Restatement of City Secretary Contract No.28358 for the exclusive collection of residential Garbage,Refuse and Bulky Waste,Recyclables,certain Commercial Solid Waste as designated by the Director, Yard Waste, C&D and Large Brush and Large Bulky Waste as approved by the City Council on November 9, 2021 by M&C 21-0860; and Whereas,the parties entered into a Settlement Agreement authorized by the City Council by M&C 20-0966 regarding amendments to the Cost Adjustment to the First Extension and Restatement to City Secretary Contract No.28358 with the intention of entering into an amendment codifying such change,however none was ever made. NOW THEREFORE, KNOW ALL BY THESE PRESENTS: 1. DEFINITIONS In this Contract, the following words and phrases shall be defined as follows; Acceptable Commercial Pile shall mean a Commercial Pile (i)being a Brush Pile produced by a Commercial Service Provider hired by the Resident or owner/agent of a residential Service Unit, generated and located at that Service Unit, and (ii)not constituting a Non-Compliant Pile. Affiliate shall mean any parent, subsidiary, or any other entity controlling, controlled by, or under common control, of Waste Management, Inc., Waste Management Holdings, Inc., or Waste Management of Texas, Inc. OFFICIAL RECORD CITY SECRETARY FT.WORTH, TX Applicable Law shall mean any statute, law, constitution, charter, ordinance, resolution, judgment, order, decree, rule, regulation, directive, interpretation, standard or similarly binding authority,which in any case,shall be enacted,adopted,promulgated,issued or enforced that relates to or affects the City, the Contractor, or the performance by a party of its obligations hereunder. Authorized Bag shall mean a specially colored bag sold by the City to the Resident to be used for disposal of Solid Waste and placed outside the Service Unit's Solid Waste Storage Cart. Bag(s) shall mean a sealed, leak proof plastic bag, designed to store Waste, with sufficient wall strength to maintain physical integrity when lifted by the top. The Bag shall be closed(i.e.,tied at the top) and shall not be overfilled. Total weight of a Bag and its contents shall not exceed 30 gallons and 40 pounds. Base Rate shall mean the monthly rate that is charged pursuant to Attachment A to the Contract to each (i) single family or multi-family Service Unit pursuant to Section La. of Attachment A, (ii) Disabled Carryout Service Unit, or (iii) Elective Carryout Service Unit (non-disabled), as adjusted pursuant to Attachment C of the Contract. Brush shall mean shrub limbs, tree limbs (up to four (4) inches in diameter), tree trimmings resulting from landscape maintenance and cleaning operations (other than an Unacceptable Commercial Pile), and untreated lumber (essentially free of hardware and nails), not exceeding eight(8) feet in length, and not including Bulky Items. Brush Pile shall mean a waste pile consisting only of Brush. Bulk Collection Day shall mean the day a Bulky Waste Pile is actually collected from a given Service Unit, which day shall fall (and may vary) within a Service Unit's Bulk Collection Week as established by the City and Contractor. Bulk Collection Week shall mean the week in which a Service Unit shall have its monthly Bulky Waste Pile collected, as established by Contractor and the City. Such week shall begin Monday at 7:00 a.m. and shall end on Saturday at 5:00 p.m. Bulky Items shall mean furniture, Treated Wood, up to ten (10) cubic yards of construction materials generated by a Resident (and not by a Commercial Service Provider) as a result of a household project, mattresses and box springs, carpet, swing sets, plastic swimming pools, large toys, bicycles, toilets, household appliances, electronic equipment (without batteries), and other similar items, open cardboard boxes, White Goods (CFC-Free), Large Brush, tree trunks, root balls; provided, all such materials must be permitted to be disposed of in a Type IV landfill. Bulky Waste Pile shall mean a waste pile which contains Bulky Items. CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 2 Bundled Yard Waste shall mean Brush that is cut, bundled and tied, with no limbs exceeding four inches (4") in diameter, and four feet(4') in length and such bundle not exceeding forty (40) pounds,but not including Bulky Items, excluding leaves, clipping, grass cuttings that is incapable of being bundled. City shall mean the City of Fort Worth, Texas. City Collector shall mean the Person, firm, corporation or association or the agents or employees thereof to whom the City shall have granted franchise or a permit, or designated as duly authorized to collect,receive, carry, haul or transport Solid Waste and/or Recyclables within the City. Collection Day shall mean the date of collection for a given Service Unit. Commercial Pile shall mean a waste pile generated by a Commercial Service Provider. Collection Services shall mean removal of Solid Waste or Recyclables for transport elsewhere, or cause such to be done. Commercial Service Provider means a commercial business enterprise or commercial service provider who performs services at a residential Service Unit that results in the production of Brush, Large Brush,Yard Waste, or C&D. Commercial Solid Waste shall mean all types of Solid Waste generated by stores, offices, restaurants, warehouses, and other non-manufacturing activities, excluding residential and industrial wastes. Commercial Waste Container shall mean a truck-loaded or truck-emptied non-disposable container, commonly referred to as a dumpster, used for the collection of Commercial Garbage and Refuse. Commission shall mean the Texas Commission of Environmental Quality (TCEQ). Construction and Demolition Waste (C & D) shall mean waste resulting from construction or demolition projects; includes all materials that are directly or indirectly the by-products of construction work or that result from demolition of buildings and other structures, including, but not limited to, bricks, concrete, other masonry materials, paper, cartons, gypsum board, wood, excelsior,rubber, and plastics. Contaminated Pile shall mean a Brush Pile or Bulky Waste Pile containing (i) waste not permitted to be disposed of at the Type IV landfill designated by the City, (ii) plastic bags, including, but not limited to, plastic bags containing putrescibles, or(iii) closed boxes; provided, CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 3 in no event shall Contractor be obligated to collect(a) rock, (b) tires, (c) Unacceptable Waste, or (d) any other waste stream expressly excluded from collection pursuant to the Contract or by Applicable Law. A Contaminated Pile may be designated by the City as a Pay Pile. Contract shall mean this Second Extension and Restatement of City Secretary Contract No.28358 and all Attachments to this document. Contractor shall mean Waste Management of Texas, Inc. Contract Year shall mean October 1 through September 30 of each calendar year. Cost Adjustment Date shall mean October 1 of each Contract Year. Cost Adjustment Method shall mean the adjustment of unit prices for collection of materials and other services provided under this Contract with the City by the Contractor for each Contract Year of the Contract. The prices may be adjusted upward or downward to reflect changes in the cost of operations by a cost adjustment calculation, as shown in Attachment B, using indices applicable to certain services. Day shall mean calendar day, unless otherwise specified. Director shall mean that person whom the City has designated to be responsible for administrating the City's Solid Waste services. Disabled Carryout shall mean collection of Solid Waste and Recyclables provided to disabled persons at the door or another designated location rather than curbside as designated by the Director. Bulky Items,Brush Pile,Bundles and Yard Waste are excluded from this special service and shall only be collected when placed at the curb. Disposal shall mean dumping or depositing of Solid Waste into or onto a Disposal Facility so that the waste or any constituent thereof is introduced into the environment. Disposal Facility shall mean a sanitary landfill or other Solid Waste Disposal Facility permitted by TCEQ and/or other applicable regulatory agency with jurisdiction and utilized for the receipt or final disposition of Solid Waste generated within the City. Elective Carryout shall mean collection of Garbage, Trash and Recyclables at the door rather than curbside including, at a rate set forth on Attachment A. Bulky Items, Brush Pile, Bundles, and Yard Waste are excluded from this special service and shall only be collected when placed at the curb. CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 4 Garbage shall mean Solid Waste consisting of putrescible animal and vegetable waste materials resulting from the handling, preparation, cooking, and consumption of food, including waste materials from markets, storage facilities, handling, and sale of produce and other food products, excluding Unacceptable Waste and Medical Waste. Governmental Body shall mean, as appropriate, any one or several of any court of competent jurisdiction, the United States of America, the State of Texas and/or any appropriate jurisdiction over activities relating to the services provided for under the terms of this Contract; or any agency, authority, regulatory body or subdivision of any of the above as may have jurisdiction over or power and authority to regulate the City, the Contractor, or the collection of Solid Waste and Recyclables. Government Approvals shall mean all licenses, permits and approvals required from any Governmental Body for performance of the Contractor's obligations under this Contract. GVW shall mean gross vehicle weight. Hazardous Waste shall mean any Solid Waste identified or listed as a Hazardous Waste by the administrator of the United States Environmental Protection Agency (U.S.E.P.A) pursuant to the federal Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976, 42 USC, §6901 et seq, as amended. Kraft Bag shall mean a biodegradable, multi-layer paper collection bag specifically designed for Yard Waste. Large Brush shall mean less than ten (10) cubic yards in volume of shrub limbs, trimmings and tree limbs or sections greater than four(4) inches in diameter,untreated lumber(free of hardware and nails) and other similar items, and excludes tree surgery and related work, which become the responsibility of the contractor hired by a Service Unit. Letter of Credit shall mean as it is described in Section 24. Material Obligation of City shall mean those services or duties for which this Contract calls upon by the City to perform unless specifically noted otherwise within the terms of this Contract, and for which,by the terms of this Contract may constitute grounds for penalties or termination if the City fails to perform such services or duties. Material Obligation of Contractor shall mean the acts or omissions of Contractor as set forth in Section 13.A3. CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 5 Medical Waste shall mean waste generated by health-care-related facilities and associated with healthcare activities, not including Garbage or Rubbish generated from offices, kitchens, or other non-health-care activities. The term includes special waste from health care-related facilities which is comprised of animal waste, bulk blood and blood products, microbiological waste, pathological waste, and sharps as those terms are defined in 25 TAC §1.132 (Definition, Treatment, and Disposition of Special Waste from Health-Care Related Facilities) or any successor. The term does not include Medical Waste produced on farmland and ranchland as defined in Agriculture Code, §252.001(6) (Definitions--Farmland or ranchland) or any successor, nor does the term include artificial, nonhuman materials removed from a patient and/or requested by a patient, including but not limited to orthopedic devices and implants. Missed Pickup shall mean a Service Unit's properly and timely placed Solid Waste Storage Cart, Recycling Cart, Bulky Waste Pile, or Yard Waste that the Service Unit Resident reports as not collected by Contractor on the Service Unit's Collection Day. Multi-Family Dwelling shall mean a building designed exclusively for residential occupancy by not more than three families unless otherwise approved by the City. MWBE shall mean a minority or women's business enterprise. Non-Compliant Pile shall mean a pile which is (i) a pile in excess of thirty (30) cubic yards of material, (ii) an Unacceptable Commercial Pile, (iii) an Out-of-Cycle Bulk Pile, (iv) an illegally dumped pile, or(v) a Contaminated Pile. Out-of-Cycle Bulk Pile shall mean a Bulky Waste Pile that is placed curbside by a Service Unit on a Day and/or time that does not fall within such Service Unit's Set-Out Period or, if the City has certified the route as complete, such Service Unit's Bulk Collection Week. An Out-of-Cycle Bulk Pile is considered a Pay Pile. Overloaded Cart shall mean a Service Unit's Solid Waste Storage Cart or Recyclables Storage Cart that is overloaded or overfilled such that(i)the lid will not close completely and is lifted twelve inches (12") or more or(ii) items such as lumber, branches, long metal objects, or similar items are sticking out of the Cart and could injure the Contractor's driver or damage Contractor's truck by falling out of the Cart when lifted and dumped into the collection truck. Pay Pile shall mean a pile which the City notifies Contractor to collect and that is either: i)an Out- of-Cycle Bulk Pile; ii) a Contaminated Pile; or iii) a pile that the Resident has requested the City to collect and which the City notifies the Contractor to collect. Pedestrian Area Container shall mean a container authorized by the City for collection by the Contractor placed in special areas. Such container may be, but is not limited to, a Big Belly solar CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 6 container, an aggregate container or metal container specifically designed to be a street/pedestrian container. Performance Bond shall mean a corporate surety bond that guarantees compensation to the City in the event that the City must assume the obligations or duties of the Contractor in order to continue the services defined in the Contract. Person shall mean any individual, partnership, co-partnership, firm, company, corporation, association, joint-stock company, trust, estate, governmental entity, or any other legal entity; or their legal representatives, agents, or assigns. This definition includes all Governmental Bodies. Priority One Collection shall mean a verified missed collection that Contractor fails to recover within the established time frame set out in Section 2, subsection F.2. Processing Facility shall mean a facility whose activities include, but are not limited to, the separation and preparation of Solid Waste for reuse or Disposal or separation and preparation of Recyclables or Yard Waste to produce a marketable commodity or product(s) for beneficial use. Recyclables shall mean material that has been recovered or diverted from the non-hazardous Solid Waste stream for purposes of reuse, recycling, or reclamation, a substantial portion of which is consistently used in the manufacture of products, which may otherwise be produced using raw or virgin materials. Recyclables are not Solid Waste. However, Recyclables may become Solid Waste at such time, if any, as it is abandoned or disposed of rather than recycled, whereupon it will be Solid Waste with respect only to the party actually abandoning or disposing of the material. Recyclables Storage Cart shall mean a leak-proof container with attached lid and wheels provided by the City that will allow the automated or semi-automated collection of Recyclables and their residue. Refuse shall mean non-putrescible Solid Waste (excluding ashes), consisting of both combustible and noncombustible waste materials. Combustible Refuse includes paper, rags, cartons, wood, excelsior, furniture, rubber, plastics, yard trimmings, leaves, or similar materials; noncombustible Refuse includes glass, crockery, tin cans, aluminum cans, metal furniture, and similar materials that will not burn at ordinary incinerator temperatures (1,600 degrees Fahrenheit to 1,800 degrees Fahrenheit). Resident or Residents shall mean a resident(s) of a Service Unit(s). Rubbish shall mean the same as Refuse. CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 7 Service Unit shall mean a Single-Family dwelling, up to three-unit Multi-Family dwelling, and commercial generator that currently sets out their municipal Solid Waste in Solid Waste Containers or Solid Waste Storage Carts,or Pedestrian Area Containers authorized by the City and designated by the City for service. Set-Out Period shall mean a specific Day and time established by the City during which the City requires Service Units to place their Garbage, Recyclables, Yard Waste, Brush and Bulky Items out on the curb for collection and which ends at the arrival of Contractor's truck for a particular Service Unit's collection route. Single-Family Dwelling shall mean a building designed exclusively for residential occupancy by not more than one family. SmartTruckTM means the Contractor's SmartTruckTM system technology that will be installed in all of Contractor's Automated Side Load residential Waste and Recycling collection vehicles providing services under this Contract, including its subcontractor Knight Waste Services's residential ASL trucks, which includes the installation of vehicle cameras and image recognition software, to help verify that Contractor's performance of service adheres to the terms of the Contract and to assist the City in its enforcement of its Solid Waste ordinances. ST Implementation Date shall mean the date the parties can begin using the SmartTruckTM system technology after it has been installed in all Automated Side Load residential Waste and Recycling collection vehicles, including its subcontractor's residential ASL trucks, and after all necessary Contractor, subcontractor, and City personnel who will use the SmartTruckTM system technology have been trained to use the system. Solid Waste or Waste shall mean any Garbage, Rubbish, or Refuse as defined herein. The term does not include: (A) solid or dissolved material in domestic sewage, or solid or dissolved material in irrigation return flows, or industrial discharges subject to regulation by permit issued under the Water Code, Chapter 26; (B) soil, dirt, rock, sand, and other natural or man-made inert solid materials used to fill land if the object of the fill is to make the land suitable for the construction of surface improvements.; (C)Unacceptable Waste; or (D)Medical Waste. CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 8 Solid Waste Container shall mean a seal, leak proof plastic bag, of at least one (1) millimeter in thickness. Solid Waste Storage Cart shall mean a leak-proof container with attached lid and wheels provided by the City that will allow the automated or semi-automated collection of Solid Waste. Southeast Landfill shall mean the City-owned landfill accepting municipal Solid Waste, located at 6288 Salt Road, Fort Worth, Texas. Special Event Material shall mean material collected from City-sponsored events such as"Great American Cleanup", "Library Book Recycling Program", and "Phone Book Redirect Program", which produce waste and/or Recyclables. Storm Event shall mean a weather related event,including,but not limited to,flood,thunderstorm, hurricane, tornado, wind storm, ice storm or other major weather event affecting the City and causing generation of greater than normal Yard Waste, and Brush and Bulky Items at a Service Unit. A generation of greater than normal material shall be defined as a twelve percent (12%) greater tonnage of Yard Waste and Brush and Bulky Items at a Service Unit and disposed by the Contractor or its designated subcontractor then the five (5) year average for the same three (3) consecutive month periods of normal Yard Waste and Brush and Bulky items that are collected and disposed of per Service Unit. Ton shall mean a short ton of 2000 pounds. Trash shall mean the same as Refuse. Treated Wood shall mean wood that has been treated or preserved with chromated copper arsenate (CCA), pentachlorophenol, or other chemicals which have been classified as known human carcinogens by the U. S. E. P. A. Type IV Waste shall mean brush such as tree and shrub limbs and trimmings,C&D, and/or Refuse that are free of putrescible waste and free of household wastes. Unacceptable Commercial Pile shall mean any Commercial Pile not an Acceptable Commercial Pile. Unacceptable Waste shall mean (i) any and all waste, including, but not limited to, Hazardous Waste, special waste, Medical Waste and friable asbestos, the acceptance and handling of which by Contractor would cause a violation of any permit condition, legal or regulatory requirement, damage to Contractor's equipment or facilities (other than damage caused by Contractor's improper use of its equipment), or present a danger to the health or safety of the public or CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 9 Contractor's employees, (ii) rock, (iii) tires, (iv) roofing material, and (v) construction debris (except for construction debris constituting Bulky Items). Uncontrollable Circumstances includes"unanticipated events,"and shall mean any act, event or condition (excluding those which result from the willful or negligent action or inaction of a party) occurring during the term that has, or may reasonably be expected to have, a material and adverse effect on a right or an obligation of either or both parties to this Contract, if such act, event or condition is beyond the reasonable control of the party relying thereon as justification for not performing under this Contract. Uncontrollable Circumstances shall include, but are not limited to,the following: an act of God, landslide, lightning, earthquake, fire, explosion,flood,ice storm, nuclear radiation, acts of a public enemy or terrorist, war, blockade, insurrection, riot or civil disturbance or any similar occurrence, or a condemnation or other taking by or on behalf of any public, quasi-public or private entity,but not including reasonably anticipated weather conditions for the geographic area of the City; Uncontrollable Circumstances shall not include: (1) insolvency or inability to pay any amount; (2) inability to obtain any letter of credit, surety bond,payment or performance bond or any other security required by this Contract; (3) a public or private labor dispute relating to the collection, transportation or disposal of Solid Waste. Vehicle shall mean every device in,upon,or by which Contractor uses to transport materials and/or waste or drawn upon a public or private highway or road to perform the services and related services described for by this Contract. Violation shall mean any determination by a Governmental Body that the Contractor is in violation of or not in compliance with any portion of its Governmental Approvals or Applicable Law. White Goods shall mean appliances such as refrigerators, stoves, washers, dryers and other large enameled appliances,which do not contain PCB or CFC units and have been officially certified to that effect. Working Day shall mean Monday through Friday and holidays, except New Year's Day, Thanksgiving Day, and Christmas Day for the collection of Solid Waste Storage Carts, Recyclables Storage Carts,Yard Waste,Bundled Yard Waste and Brush. Working Day shall mean Monday through Saturday and holidays, except New Year's Day, Thanksgiving Day, and Christmas Day for the collection of Missed Pickups, Bulky Waste Piles and Pay Piles. CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 10 Yard Waste shall mean leaves, grass and yard trimmings, yard and garden debris, and Brush, but not including Bulky Items. Yard Waste Cart shall mean a green waste cart purchased by Resident from the City for Yard Waste storage prior to its collection. 2. SCOPE OF CONTRACTOR'S SERVICES Contractor hereby covenants and agrees to diligently and faithfully perform the services listed below(hereinafter"Collection Services"). Contractor shall have the exclusive right to perform the Collection Services as described herein during the term of this Agreement. These Collection Services shall include the furnishing of all labor, tools, equipment, materials, insurance, Performance Bonds (to the extent set forth herein), supervision and all other items necessary to the performance of such work and services.All work and services to be performed under this Contract shall be carried out in the following manner, at the times, in the locations and at the unit prices specified in the Base Rates for Contractor Services as Attachment A. A. Collection Services 1. Once a week collection of residential Waste, contained in City-owned and provided Solid Waste Storage Carts from Service Units within the City which house three (3) or fewer dwelling units and from such other similar establishments as designated by the Director; 2. Once a week collection of Recyclables contained in City-owned and provided Recyclables Storage Carts from Service Units within the City which house three (3) or fewer dwelling units and from such other establishments as designated by the Director; 3. Once a week Yard Waste Collection as follows: a. Contractor shall collect an unlimited amount of Yard Waste placed curbside by Residents contained in (i) Kraft Bags, and(ii) City authorized Yard Waste Carts or Contractor-owned Yard Waste carts;provided, Contractor, at its sole election,may at any such time as is agreeable to the City,and with at least thirty(30)Days written notice, remove such Contractor-owned Yard Waste carts. There shall be no limit as to the quantity of Kraft Bags or Yard Waste Carts to be collected by Contractor at each Service Unit. Yard Waste contained in any other types of bags or containers, including plastic bags, shall not be collected as Yard Waste. Uncontained leaves or yard trimmings shall not be collected as Yard Waste. b. Contractor shall collect an unlimited amount of Bundled Yard Waste placed curbside of a Service Unit. CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 11 c. Additionally, Contractor shall collect up to thirty (30) cubic yards of Brush,which may be unbundled. Such Brush shall be collected by Contractor as follows: i. If a Brush Pile exceeds ten(10)cubic yards but is less than or equal to thirty (30) cubic yards, Contractor shall be entitled to charge the City $56.13 for each five (5) cubic yards, or a portion thereof, in excess of ten (10) cubic yards. Contractor shall provide the City with photographic evidence that such pile exceeds ten (10)cubic yards. ii. If a Brush Pile exceeds thirty (30) cubic yards, such pile shall be a Non- Compliant Pile, and shall be subject to the provisions of Section 2.13.1 below. 4. Once per month Bulky Waste Pile collection as follows: a. Each residential Service Unit shall be entitled to place curbside, and Contractor shall collect,up to thirty (30) cubic yards of Bulky Items per monthly collection on the Bulky Item Collection Day. b. If a Bulky Waste Pile at a residential Service Unit exceeds ten (10)cubic yards,but is less than or equal to thirty(30)cubic yards, Contractor shall be entitled to charge the City $56.13 for each five (5) cubic yards, or a portion thereof, in excess of ten (10) cubic yards as reflected in Attachment A and adjusted per the Cost Adjustment Method. Contractor shall provide the City with a digital photograph as evidence that such pile exceeds ten (10) cubic yards. Bulky Waste Pile collection shall begin by the Contractor no earlier than seven (7) a.m. on the Monday of that Bulk Collection Week and Contractor shall have completed collection of the Bulky Waste Piles in that designated Bulky Waste Pile collection route no later than five (5) p.m. on that Saturday of the Bulk Collection Week. Contractor shall perform daily Bulk Waste collection from the residential Service Units between the hours of seven(7) a.m. and seven(7)p.m.Monday through Friday and seven(7)a.m. and five (5)p.m. on Saturdays. c. If a Bulky Waste Pile exceeds thirty (30) cubic yards, such pile shall be a Non- Compliant Pile, and shall be subject to the provisions of Section 2.B.1 below. d. The City and Contractor shall work together to establish collection routes for the monthly Bulky Waste Pile collection. Any major change to the Bulky Waste Pile collection routes must be made in writing, signed by both parties. Routes shall be balanced in volume and geographic area and be of such size to allow collection of such Bulky Waste Piles by the Contractor according to the terms of this Contract CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 12 and to allow the City to verify compliance of Contractor's performance according to the terms of this Contract in a timely manner. 5. Disabled Carryout collection service shall be provided to those residents that the City determines have demonstrated a need or hardship necessitating this special service. The City has sole responsibility for determining which residential Service Unit customers qualify for the Disabled Carryout collection service. The City will provide Contractor with a complete list of qualifying residential customers' addresses and all modifications made to the list of qualified Disabled Carryout collection customers.Disabled Carryout residential customers must place their Waste Storage Cart and/or Recyclables Storage Cart near the outside of their house for collection. Contractor will roll the Cart(s) from their house area to the collection truck, empty the Carts, and roll them back to the original location. 6. Collection of Commercial Solid Waste contained in Solid Waste Carts or Solid Waste Containers designated by the Director and at such frequency as requested by such customer; 7. Collection of Waste contained in designated Pedestrian Area Containers used in special districts in the City on the schedule requested by the City; and 8. Assist the City in its public education and community information program and make payments to the City in support of City's public education program as set forth in section 6.C. B. Other Collection Services 1. Pay Piles and Non-Compliant Piles: a. Contractor shall promptly notify the City of any Contaminated Piles that Contractor encounters on the Bulky Item Collection Day and refrain from collecting such Contaminated Pile on the Bulk Collection Day until it receives instruction from the City to pick up such Contaminated Pile as a Pay Pile. If the City so instructs,then Contractor shall collect such Contaminated Piles as described in Section B.I. below. However, the City shall have the absolute right to use its own equipment or hire any third party contractor to collect Contaminated Piles beyond those described in Section B.1. b. Contractor shall collect Acceptable Commercial Piles on the Collection Day. Contractor shall not be obligated to collect Unacceptable Commercial Piles. Contractor shall notify the City within twenty (24) hours when Contractor reasonably believes an Unacceptable Commercial Pile exists curbside at a Service CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 13 Unit. The City shall assist Contractor in identifying Commercial Service Providers generating Unacceptable Commercial Piles. c. If a Brush Pile or Bulky Waste Pile contains plastic bags, Contractor shall remove (and leave at the Service Unit) up to two (2) plastic bags from such pile if (i) removal would then make such pile non-Contaminated, and (ii) such plastic bags can be easily removed by Contractor using reasonable efforts, taking into account the location of the plastic bags in such pile, and the composition and nature of such pile. Contractor shall have no obligation to collect such plastic bags (unless they have an Authorized Bag or are placed in the Solid Waste Storage Cart, in which case they will be collected with the weekly Garbage service), but shall notify the City of such bags. d. Contractor shall collect Pay Piles within seven (7) days after notification from the City through the City's Customer Service Electronic Tracking System. The City shall have the absolute right to collect or contract to collect Pay Piles and/or Non- Compliant Piles. i) Pay Piles collected pursuant to this Section shall be collected by Contractor at a rate of Fifty Dollars ($56.13) for up to five (5) cubic yards, and Fifty Dollars($56.13)for each subsequent five(5)cubic yards,or portion thereof, collected by Contractor beginning on the Effective Date pursuant to Attachment A, and as adjusted per the Cost Adjustment Method in Attachment B. The City and Contractor shall work together to route collection of such piles in a reasonable and efficient manner. ii) In the event that the City generates a work order for collection at a Service Unit and upon Contractor's arrival for collection within the seven (7) Days specified above, the Pay Pile has been abated, then Contractor may charge the City a "Nothing Out" charge as shown in Attachment A. 2. Vacant Lots,Vacant Houses. Contractor agrees to collect Brush Piles and Bulky Waste Piles located at the curb of vacant lots or vacant houses during and on Contractor's regular monthly Bulky Waste Pile collection route, subject to the fees set forth above for piles which are greater than 10 cubic yards. Piles greater than 30 cubic yards, Commercial Piles, and Out-of-Cycle Bulk Piles at vacant lots or vacant houses will not be collected by Contractor. Contractor shall provide the City with photographic evidence that such piles exist. CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 14 3. Authorized Bag Collection. Contractor agrees to collect Authorized Bags containing Solid Waste placed curbside at a residential Service Unit Pursuant to the Service Unit Authorized Bag price specified in Attachment A for each Authorized Bag disbursed either to a Resident or the City (regardless of whether or not such Authorized Bag is actually used by a Resident). The City shall remit to Contractor such Authorized Bag fees in the month following the City's sale of such Authorized Bag. The terms of this Section shall continue in full force and effect until the ST Implementation Date. Once the SmartTruckTM system technology has been completely installed, as further described in Section 10 below, and all necessary personnel have received training on the system, effective on the ST Implementation Date, this Section 3.a. language regarding the collection of Authorized Bags and the Authorized Bag price that City pays Contractor shall no longer apply and shall be replaced by the language in section 4. below. 4. SmartTruckTM System Technology and Collection of Bags and Overloaded Waste and Recyclable Carts. Effective on the ST agreement Implementation Date, Contractor agrees to collect additional Bags up to a maximum of five (5)Bags per Service Unit and overloaded Solid Waste Carts and Recyclables Storage Carts set out at Service Units, which shall not include Authorized Bags, and shall charge the City for the collection of the additional Bags and overloaded Carts in accordance with the prices in Attachment A, as adjusted by the Cost Adjustment Method set out in Attachment B. Contractor will provide the City with digital photos indicating the resident Service Units where Contractor collected Bags, overloaded Waste Carts, and/or overloaded Recyclables Storage Carts. Contractor will charge and the City agrees to pay for the additional Bags that Contractor collects as well as Contractor's collection of overloaded Waste Carts and Recyclables Storage Carts. Contractor will provide the City with digital photos and video for each Service Unit's set-out of Bags and overloaded Waste Carts and Recyclables Storage Carts for which Contractor seeks payment from the City. 5. Storm Events. In the event there is a Storm Event, as defined in Section 1, Definitions, and calculated in Attachment D, Contractor agrees, as requested by the City,to collect the material generated as a result of the Storm Event. Contractor is entitled to recover its costs from the City and hereby agrees to accept payment in the manner CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 15 as reflected in Attachment D. as full compensation for services rendered. Contractor will submit documentation of the Storm Event calculation to the City. Contractor and the City agree that Contractor does not have the exclusive right to clean up the material generated within the City as a result of a Storm Event as the City may choose to augment the collection by the use of City forces and/or another contractor to expedite the removal of Storm Event debris. D. Designated Service Area. All collections under the terms of this Contract shall be in the incorporated limits of the City. The designated service area may be enlarged from time-to-time by the Director as annexation, disannexation, or new construction occurs. E. Delivery. All collections under the terms of this Contract, unless otherwise determined by the Director, shall be delivered as follows: 1. Collected residential Garbage,Refuse,Large Brush,Yard Waste and Bulky Waste shall be delivered to the Southeast Landfill, unless the City designates another Processing Facility or Disposal Facility; 2. Collected Recyclables and their residue shall be delivered to Republic Services North Texas Recycling Complex, located at 6200 Elliott Reeder Rd, Fort Worth, Texas unless the City designates another Processing Facility; and 3. Collected C&D materials shall be delivered to IESI Fort Worth C&D Landfill located at 4144 Dick Price Road, Kennedale, Texas, unless the City designates another Processing Facility or Disposal Facility. If the Contractor is directed by the Director to dispose of the collected materials under the terms of this Contact, such disposal shall be made within twenty (20) miles from the intersection of I-30 and I-35. F. Missed Pickups and Priority One Collections. I. The City hereby agrees that Contractor shall not be liable to the City for liquidated damages, or shall not otherwise be deemed in default of the Contract(or having caused an event which, with the giving of notice, would constitute an event of default) for a Missed Pickup if such Missed Pickup is caused by a Resident who fails to timely set out its Solid Waste Storage Cart, Recyclables Storage Cart, Yard Waste cart, Brush Pile or Bulky Waste Pile, fails to bring such waste or recyclables to the curb, or places Waste outside the Solid Waste Storage Cart which does not have an Authorized Bag at the time of collection or exceeds the 5-Bag limit after the ST Implementation Date, an Unacceptable Commercial Pile or an illegally dumped Pile on the curb for collection, or otherwise creates a Non-Compliant Pile. The City and Contractor agree to work CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 16 together to verify the Missed Pickups and to identify the Service Units in violation of set out requirements. The City shall take the appropriate measures to educate and enforce against violations of any ordinance and regulations relating to such Missed Pick-ups described above. 2. Contractor agrees to recover a verified Missed Pickup within the following recovery time frames: a. Within twenty-four(24)hours for Waste Cart and Recyclables Storage Cart collections from the time the verified missed collection was entered into the City's Customer Service Electronic Tracking System; and b. Within thirty-six (36)hours for a Bulky Waste Pile or a Yard Waste pile collection from the time the missed collection was entered into the City's Customer Service Electronic Tracking System. c. If a verified missed collection is entered into the City's Customer Service Electronic Tracking System prior to the close of business of City's call center on a Friday(7:30 pm), then Contractor shall collect such Missed Pickup by the close of business the following Saturday. If a verified missed collection is entered into the City's software system prior to the close of business of City's call center on a Saturday (4:00 pm), then Contractor shall collect such Missed Pickup by the close of business the following Monday. d. If Contractor fails to recover the verified missed collection for Solid Waste Storage Carts, Recyclables Storage Carts, Bulky Waste Piles, or Yard Waste piles within the established time frames set out above, then the missed collection shall be converted into a Priority One Collection. A Priority One Collection is a verified missed collection of a Waste Cart, Recyclable Storage Cart, Bulky Waste Pile or Yard Waste pile that Contractor has failed to recover within the established time set forth in subsections a. and b. above. 3. As of the effective date of this Contract,Contractor agrees to strive toward having fewer than the individual quarterly goals for all four (4) collection services set forth in subsection 2.d. above, which goals are identified within an agreed upon performance score card attached as Attachment C herein. Contractor has agreed to target a one-time 20%reduction of Priority One Collections for Waste Carts and Recycling Storage Cart collection services and a one-time 10% reduction of Priority One Collections for Yard Waste and Bulky Waste Pile collection services (hereafter "Quarterly Reduction Goals"). These Quarterly Reduction Goals have been based on the average monthly actuals during the past four (4) fiscal years (2016 through 2019), excluding fiscal year 2020 due to the COVID pandemic, which resulted in atypical Service Unit setout circumstances. If Contractor reduces the total number of Priority One Collections (tracked by month)within each of the four individual service lines set forth in subsection CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 17 2d., the City agrees not to assess the associated Priority One liquidated damage fee per collection as stated in Section 18for all the individual Priority One Collection failures occurring within that individual service line for that quarter. However, if Contractor fails to reduce the total number of Priority One Collections (tracked by month) within each individual service line below the established Quarterly Reduction Goals, then the City has the right to assess and Contractor shall pay the associated Priority One liquidated damage fee per collection as stated in Section 18 for each individual Priority One Collection that occurs within the individual service line for that quarter. 4. Collection Day Route Completion: If Contractor fails to complete more than three (3) Collection Day routes in one calendar month and such failures are verified in accordance with the terms of this Contract, then the City has the right to assess a liquidated damage against Contractor as indicated in Section 18. G. Standard Operating Procedures The Standard Operating Procedures ("SOPs") for all Collection Services, if any, within this Contract shall be made in writing,dated and signed by both parties. The SOPS may be amended individually or collectively by mutual agreement in writing, dated and signed by both parties. If the parties cannot agree on which SOP controls, then the parties shall attempt to resolve the matter amicably, and each party shall send a representative with authority to attend such resolution meeting. 3. SCOPE OF CITY SERVICES The City agrees to perform the following services: A. Designate a City representative to provide timely direction to the Contractor and render City decisions; B. Notify the Contractor of Service Units to be added or dropped from the Contractor's services or a change in service; C. Timely review and respond, if necessary,to reports submitted by Contractor; D. Make timely payments upon review and approval of invoices submitted by the Contractor; E. Monitor the personnel, equipment, and Vehicle standards as described in the terms of this Contract; CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 18 F. Manage the City's call center and inform Contractor of complaints made by citizens in a timely manner; G. Provide educational programs and material as determined by the Director to the City's citizens to educate citizens on the proper way to set out Solid Waste and Recyclables for collection under the terms of this Contract and the City's ordinances; H. Work with Contractor to resolve complex customer service issues; L Review and approve all route and service delivery dates; and J. Determine, assess, and collect liquidated damages pursuant to Section 18 as determined by the Director. K. The City shall take all reasonable steps available to verify and confirm the address of any Service Unit which lodges a complaint relating to the Collection Services of Contractor. L. The City shall educate Residents as to set out dates, separation procedures and Non- Compliant piles in accordance with the Ordinance and the SOP. The City will establish Set-Out Periods that are reasonably specific, finite periods of time that will end before the scheduled arrival of the Contractor's trucks for a particular Service Unit's route,as set forth on the routing schedule. 4. TERM The term of the Second Extension and Restatement shall be for a period of approximately twelve (12) years retroactively commencing on December 1, 2021 and ending March 31, 2033. City shall have the right to extend this Contract for one(1)consecutive ten(10)year renewal term, provided City and Contractor agree to extend this Contract in writing at least one hundred eighty (180) Days prior to the end of the initial term or the then current renewal term. The renewal shall have the same terms, conditions and fees as set forth herein, unless agreed to otherwise in writing by both parties in an amendment to this Contract. 5. PAYMENT For and in consideration of the Collection Services performed in accordance with this Contract, City agrees to pay Contractor as follows: CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 19 A. Within fifteen (15) Days of the end of each month during which Collection Services are provided by the Contractor, Contractor shall submit to the Director a monthly report and invoice for monthly payments due Contractor as well as the Contractor's MWBE participation for that month. B. The monthly payment shall be the sum of: 1. The number of residential curbside, alley and Disabled Carryout Service Units of the then current number of Service Units as determined by the City on a monthly basis, times the unit price for curbside and Disabled Carryout service; plus 2. The number of hours for collection of Special Event Material, times the applicable hourly rate and Contractor shall include the work orders describing the time it took Contractor to complete such services at each special event and the disposal tickets identifying the Disposal Facility and/or Processing Facility and the weight of the waste and/or Recyclables; plus Storm Event debris and any other special Collection Services requested by City times the applicable rate; plus 3. The number of Elective Carry-out Service Units on the current number of Service Units as determined by the City on a monthly basis times the unit price for Elective Carry-out Service; plus 4. The Contract price for collection of each commercial unit of the current number of Service Units as determined by the City on a monthly basis. Contractor may petition the City to alter the agreed upon price, based on changes in Refuse and/or Garbage generation by commercial accounts served pursuant to City directive, no more frequently than every thirty (30) Days for each such commercial account; plus 5. The number of Pedestrian Area Containers that were completed multiplied by the agreed upon price for collection of such units; 6. Any other amounts Contractor is authorized to recover from the City including without limitation,collection of Bags or overloaded Carts as documented by digital photos; less 7. Any liquidated damages assessed by the City as per Section 18. C. Payment shall be made to the Contractor within thirty(30)Days from receipt and approval by the City of the Contractor's final monthly statement of services provided and Contractor's monthly report. Service Unit prices for the first year of the term of this Contract shall be the amounts as specified in Attachment A, namely: 1. Once weekly collection of: (i) residential Solid Waste from City-owned and provided Solid Waste Storage Carts, Authorized Bags, and Bags properly and timely set out curbside. Should such residential Solid Waste exceed the capacity of the Solid Waste Storage Cart at any residential Service Unit, the resident will be required to secure a second Solid Waste Storage Cart to contain such materials; (ii)Recyclables from City- owned Recyclables Storage Carts; and(iii) Yard Waste in Kraft bags and Yard Waste CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 20 Carts, Bundles, and Brush. The Service Unit prices are set forth in Attachment A, and shall be adjusted pursuant to the terms of Attachment B. D. Pedestrian Area Containers used in special districts, Special Event Materials, and other special collections requested by the City shall be charged in the amounts as described in Attachment A. Storm Event collections shall be determined and charged in the amounts as described in Attachment D. E. The public education program payment specified in Section 2.A.8 shall be made in equal amounts paid on a quarterly basis with the quarterly payments made on or before July 1st, October 1st, January 1st, and April 1st of each year that the Contract is in place. 6. COST ADJUSTMENT A. Contractor hereby agrees to accept payments, adjusted by the Cost Adjustment Method in the manner as reflected in the Adjustment Schedule included in this Contract as Attachment B, as full compensation for services rendered. Contractor will submit documentation of the payment adjustment criteria to the City along with its annual request for rate adjustment. B. The City and Contractor agree that there shall not be a Cost Adjustment for the 2022 Contract Year(i.e.,October 1,2021 through September 30,2022)and the Service Unit rate shall remain $13.28 until September 30, 2022. For the 2023 Contract year(i.e. October 1, 2022 through September 30, 2023) the Cost Adjustment Index calculation shall be determined according to the procedure shown in Attachment B, and shall be effective October 1, 2022. C. Contractor shall contribute four dollars and twenty-one cents ($4.21) per Service Unit to the City in the first year of the Contract commencing on October 1, 2021, as provided in Section 2.A.8 above for the public education program. In each succeeding year on the anniversary date, this amount will be adjusted by the Cost Adjustment Method set forth in Attachment B. If this method yields a decrease,Contractor's contribution to this education program will remain the same as the previous year.Under no circumstance,will this public education program payment decrease. 7. HOLIDAYS CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 21 Contractor shall not be obligated to provide Collection Services on New Year's Day,Thanksgiving Day and Christmas Day; provided, however, during the calendar week of each of these holidays, Contractor agrees to revise the Collection Day so that all Service Units receive their weekly collections during such holiday week. In addition, on the Collection Day following the above listed holidays, Contractor shall collect up to two (2) additional thirty(30) gallon Bags in addition to the allowable five (5) Bags and/or two (2) like size boxes outside of the Solid Waste Storage Carts at no additional cost. 8. LABORFORCE A. Contractor shall provide fifteen (15) Days' notice after a change in key personnel (e.g., Division President, Operations Manager and Facility Manager) to the Director and introduce such new personnel to the Director. Contractor may bring in from outside the City of Fort Worth its key personnel. All other workers, including equipment operators, vehicle drivers and laborers may be imported only after the local supply of competent personnel is reasonably exhausted by reviewing lists provided by the Director and newspaper advertising. Contractor shall employ only such superintendents, foremen, and workers who are careful, competent and fully qualified to perform the duties or tasks assigned to them and shall take appropriate action against any employees or subcontractors of Contractor who shall behave themselves in such manner as to be actionable or who neglect or refuse to comply with or carry out the directions of Contractor. 9. PERSONNEL STANDARDS A. Contractor shall furnish such qualified drivers,mechanical, supervisory, clerical and other personnel as may be necessary to provide the services required in a safe, economical and efficient manner. All drivers shall be trained and qualified in the operation of waste collection Vehicles and must have in effect a valid commercial drivers license, of the appropriate class, issued by the Texas Department of Public Safety. B. Contractor shall provide suitable operational and safety training for all of its employees who utilize or operate Vehicles or equipment for collection of materials under the Contract. Contractor shall train its employees in Solid Waste collection to identify, and use reasonable effort not to collect Hazardous Waste or infectious Medical Waste. C. Contractor shall not, nor shall it permit its employees to, demand or solicit, directly or indirectly,any additional compensation or gratuity from members of the public for services provided under the Contract. CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 22 D. Contractor shall use its best efforts to assure that all employees present a neat appearance and conduct themselves in a courteous manner. Contractor shall regularly train its employees in customer courtesy, shall prohibit the use of loud or profane language, and shall instruct collection crews to perform the work as quietly as possible. If any employee is found not to be courteous or not to be performing services in the manner required by the Contract, Contractor shall take all appropriate corrective measures. If City has notified Contractor of a complaint related to discourteous or improper behavior, Contractor will consider reassigning the employee to duties not entailing contact with the public while Contractor is pursuing its investigation and corrective action process. E. Contractor shall designate qualified employees as supervisors of field operations. Supervisors will be in the field inspecting Contractor's work and will be available by radio or phone during the Contractor's hours of operation to handle calls and complaints from the City, or to follow up on problems and inspect Contractor's operations. F. All employees of the Contractor performing work under the Contract shall be uniformed, showing their association with the Contractor while operating in the field. Contractor shall provide a list of current employees, contractors and subcontractors to City upon request. G. Contractor will train its employees as to the City's Solid Waste ordinance and collection rules and regulations, ensuring employees can answer questions from citizens and follow the City's collection rules at the curb. This training is to be ongoing and reach new hires. Contractor employees will also leave notices of improper set-out when applicable. 10. VEHICLE AND EQUIPMENT STANDARDS A. General I. Contractor shall provide a fleet of collection Vehicles sufficient in number and capacity to efficiently perform the work required by the Contract in strict accordance with its terms. Contractor shall have available on Working Days sufficient back-up Vehicles for each type of collection and Vehicles to use to respond to complaints and emergencies. No Vehicle used in servicing this Contract shall be more than ten (10) years old as of March 31, 2026. City representative(s) shall inspect all Vehicles to be used in servicing this Contract no later than thirty (30) Days before Contract begins and each year of the Contract. City shall notify Contractor about the failure of any Vehicle to meet this requirement within ten (10) Days of inspection. Any Vehicle reaching ten (10) years of age during the term of the Contract shall be taken out of service for purposes of the Contract services in compliance with the Contract. 2. Contractor shall furnish and maintain all such equipment as is considered to be CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 23 necessary for prosecution of the work in an acceptable manner and at a satisfactory rate of progress. 3. Contractor shall upgrade all Automated Side Load (ASL) residential Waste and Recycling collection vehicles, including its subcontractor's residential ASL collection vehicles by installing vehicle cameras and image recognition software, known as the SmartTruckTM system technology to help verify that Contractor's performance of service adheres to the terms of the Contract and to assist the City in its enforcement of its Solid Waste ordinances. Contractor shall take all practicable measures necessary to install the SmartTruckTM system technology in all ASL trucks and to train those personnel who will use the SmartTruckTM system technology by May 1, 2022; however, Contractor will not be considered in breach or default if, due to Uncontrollable Circumstances, it does not meet the May 1, 2022 date ("ST Implementation Date"), provided Contractor uses its best efforts to fulfill such obligation as soon as possible and notify the City in writing of the amended implementation date. 4. Contractor shall endeavor, as soon as commercially reasonably possible, to implement SmartTruckTM system technology on boom trucks and rear truck loaders providing services under this Contract following the Implementation Date. B. List Contractor shall identify in writing to the Director and update as conditions change, by area, a listing of: 1. Number of routes, number of Vehicles and size of Vehicles to be proposed by service type; 2. Number of spare Vehicles to be on hand for back-up of front-line trucks; and 3. Designated unique Vehicle number, description, and legal GVW of each Vehicle. C. Specifications I. All Vehicles used by Contractor and Contractor's subcontractor(s) in providing collection of materials under the Contract shall be designed to prevent leakage, spillage or overflow. All such Vehicles shall comply with U.S. Environmental Protection Agency noise emission regulations and other applicable noise control regulations. Contractor shall also ensure that GVW of all Vehicles, even when loaded, does not exceed Vehicle license limitations to protect the highways of the City. 2. All equipment,tools, and machinery used for handling materials and executing any part of the work shall be subject to approval by the Director and shall be maintained in satisfactory, safe and efficient working condition in accordance with the CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 24 manufacturer's specifications and/or recommendations. Equipment used by Contractor or Contractor's subcontractor(s) shall be such that no injury to the workers or property should result from its proper use. Contractor shall be responsible for initiating, maintaining and supervising all safety precautions and programs, in connection with the work and services performed hereunder. Contractor shall provide reasonable protection to prevent property loss or damage and/or personal injury to persons, including but not limited to employees performing such work and all other persons who may be affected thereby. D. Vehicle Identification Contractor's name, local telephone number, City's call center telephone number and a unique Vehicle identification number designated by Contractor for each Vehicle shall be prominently displayed on all Vehicles. The Contractor's name, local telephone number, City's call center telephone number shall be displayed in letters and numbers no less than four(4) inches high and the identification number shall be displayed in letters and numbers no less than two and one-half(2 '/2) inches high. Contractor shall not place the City's logo on its Vehicles. E. Vehicle and Equipment Inventory In addition to the above requested information, Contractor shall furnish the City a written inventory of all Vehicles and equipment used in providing service, and shall update the inventory annually within fifteen (15) Days of the Day any Vehicle or equipment is added to or removed from the inventory. The inventory shall list all Vehicles by manufacturer, ID number, date of acquisition, type, and capacity. F. Cleaning and Maintenance Contractor and Contractor's subcontractor(s) shall maintain all of its properties, facilities and equipment used in providing service under the Contract in a safe, neat, clean and operable condition at all times. Vehicles used in the collection of materials under the Contract shall be thoroughly washed on a regular basis so as to present a clean appearance. City may inspect Vehicles at any time to determine compliance with sanitation requirements. G. Inspection Contractor and Contractor's subcontractor(s) shall inspect each Vehicle and each piece of equipment daily to ensure that all equipment is operating properly and complies with Applicable Law. Vehicles which are not operating properly or do not comply with Applicable Law shall be taken out of service until they are repaired and do operate properly and comply with Applicable Law. Contractor and Contractor's subcontractor(s) shall perform preventive maintenance and all scheduled maintenance functions in accordance with the manufacturer's specifications and schedule. Contractor and Contractor's CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 25 subcontractor(s) shall keep accurate records of all Vehicle maintenance, recorded according to date and mileage, and shall make such records available to the City upon request to the extent necessary to ensure compliance with manufacturer's recommended scheduled Vehicle service. H. Repair Contractor and Contractor's subcontractor(s) shall repair, or arrange for the repair of, all of its Vehicles and equipment for which repairs are needed because of accident,breakdown or any other cause so as to maintain all equipment in a safe and operable condition. Contractor and Contractor's subcontractor(s) shall maintain accurate records of repair, which shall include the date/mileage, nature of repair and the signature of a maintenance supervisor that the repair has been properly performed. I. Storage Contractor and Contractor's subcontractor(s), as applicable, shall arrange to store all Vehicles and other equipment in safe and secure location(s), where applicable, in accordance with City's applicable zoning regulations. 11. MWBE REQUIREMENTS In keeping with the City's Minority/Women Business Enterprise (MWBE) ordinance, Contractor agrees to the following: A. A minimum of twenty-five percent(25%) of the total dollar value of this Contract will be paid as compensation to certified MWBE firms, pursuant to the City's ordinance. B. Contractor will, during the term of this Contract, provide City with monthly reports detailing its compliance with the requirements for MWBE participation, including but not limited to the activities of the MWBE and the dollar value of those services, as required by the City. City shall have a right of access to any and all books, records and documents which relate to MWBE subcontracts in order to audit and verify the information contained in the monthly reports. Contractor shall include in all MWBE subcontracts a similar provision allowing City access to subcontractor's books, records and documents for these purposes. 12. REPORTING REQUIREMENTS Contractor shall respond to any request by the City for information related to the Collection Services, including all complaints, accidents or incidents while performing any duties pursuant to CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 26 the terms of this Contract,outages or downtime, and inspections by any regulatory agencies within twenty-four (24) hours. Contractor's response shall detail the nature and reasons for these occurrences as well as all results, findings and actions taken to resolve such incidents. Contractor shall also notify the Director immediately of any fines or penalties levied and any actions that could have an adverse impact on the Contractor or service to the City, or both. Failure to report such data shall subject the Contractor to liquidated damages described in Section 18 of this Contract. Contractor shall keep records on a daily, weekly, cumulative monthly, and cumulative annual basis of all activity related to the Collection Services,and such record shall be available to the City upon request. 13. EVENTS OF DEFAULT BY CONTRACTOR A. The following shall constitute events of default on the part of the Contractor except to the extent caused by the occurrence of an Uncontrollable Circumstance or City's fault unless otherwise specified herein: 1. Failure by the Contractor to perform any Material Obligation of Contractor under the terms of this Contract, and continuance of such failure after(i) written notice thereof has been provided by the Director specifying such failure and requesting that such condition be remedied, and (ii) Contractor's failure to cure the default or immediately initiate and diligently pursue reasonable action and cure such non-performance within fifteen (15) Days after receiving notice from the Director (provided, if such failure is of a nature that it cannot be cured within such fifteen (15) day period, Contractor shall not be in default if Contractor commences the curing of such failure within such fifteen (15)day period, and diligently pursues the curing thereof and both City and Contractor agree that the failure cannot be cured in fifteen (15) Days); or 2. The Contractor being insolvent or bankrupt or ceasing to pay its debts as they mature or making an arrangement with or for the benefit of its creditors or consenting to or acquiescing in the appointment of a receiver trustee, or liquidator for a substantial part of its property; or a bankruptcy, winding up, reorganization, insolvency, arrangement, or similar proceeding instituted by the Contractor,under the laws of any Governmental Body or against the Contractor, if the Contractor does not take the appropriate action to dismiss said proceedings; which proceedings have not been dismissed within ninety (90) Days of the institution of such proceedings; or any action or answer by the Contractor approving, consenting to, or acquiescing in, any such proceedings; or the CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 27 event of any distress, execution, or attachment upon the property of the Contractor which shall substantially interfere with its performance hereunder; or 3. The following acts or omissions by the Contractor shall constitute failure to perform a Material Obligation of Contractor under this Contract: a. Failure of Contractor to commence work operations within the time specified in the Contract. b. Failure of Contractor to provide and maintain sufficient labor, Vehicles and equipment or licenses, permits and necessary approvals from City or a third party to properly and legally execute the working operations. c. Evidence that Contractor has abandoned the work. d. Evidence that Contractor has become insolvent or bankrupt, or otherwise financially unable to carry on the work satisfactorily. e. Failure on the part of Contractor to comply with any material requirements of the Contract such as failure to maintain insurance or the Performance Bond or to comply with any of the Director's material requirements which are provided for in this Contract. f. Indication that the Contractor has made an unauthorized assignment of the Contract or any funds due thereof for the benefit of any creditor or for any other Purpose. g. Failure to supply complete and accurate information as required in this Contract. h. Failure to maintain required level of MWBE participation. i. Failure to indemnify the City as required herein. j. Falsifying records or reports to the City, State or Federal governments. k. Failure to remedy the cause of a complaint as described in Section 17, subject to the provisions of Section 17.E below. 1. Failure to comply with Applicable Law that affects Contractor's ability to perform this Contract as reasonably determined by the Director. CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 28 B. City shall, as soon as practical, notify Contractor of any failure on the Contractor's part to comply with the terms of this Contract.After receipt of notice from the City of an event of default set forth in Section 13.A above,Contractor shall acknowledge receipt of such notice by telephone, facsimile, or email within four (4) hours. Contractor shall provide the City with verbal notice of what corrective action has or shall be taken by the Contractor and shall follow up with written notice describing the same along with any additional relevant information,within forty-eight(48) hours. Failure to provide acknowledgement of receipt of notice, or plan of corrective action, within the above mentioned time period(s) shall constitute an event of default by the Contractor. 14. EVENTS OF DEFAULT BY CITY A. The following shall constitute events of default on the part of the City, except to the extent excused by the occurrence of an Uncontrollable Circumstance or Contractor's fault unless otherwise specified herein: 1. A failure by City to timely perform any Material Obligation under the terms of this Contract, and the continuance of such failure for a period of sixty (60) Days after written notice thereof has been provided by the Contractor specifying such failure and requesting that such condition be remedied if City does not either cure the default or initiate and diligently pursue reasonable actions to cure such non-performance notwithstanding Section 32; or 2. City being insolvent or bankrupt or ceasing to pay its debts as they mature or making an arrangement with or for the benefit of its creditors or consenting to or acquiescing in the appointment of a receiver, trustee or liquidator for a substantial part of its property; or a bankruptcy, winding up, reorganization, insolvency, arrangement or similar proceeding instituted by City under the laws of any jurisdiction or against City, if City does not take appropriate action to dismiss said proceedings,which proceedings have not been dismissed within ninety (90) Days of the institution of such proceedings; or any action or answer by City, approving of, consenting to, or acquiescing in, any such proceedings; or the levy of any distress, execution or attachment upon the property of City, which shall substantially interfere with its performance hereunder. B. Contractor shall, as soon as practical,notify City of any failure on the City's part to comply with the terms of this Contract. After receipt of notice from the Contractor, City shall acknowledge receipt of such notice and shall promptly provide the Contractor with notice of what corrective action has or shall be taken by the City, within a reasonable time, in light of the circumstances. Failure to promptly provide acknowledgement of receipt of CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 29 notice, or notice of planned corrective action, shall constitute an event of default by the City. 15. DISPUTE RESOLUTION The parties shall endeavor to settle all disputes arising out of or relating to this Contract by amicable negotiations. Except as otherwise provided herein, any claim, dispute, disagreement or controversy that arises between the parties under or relating to this Agreement that is not amicably settled shall be submitted to mediation. If the parties remain unable to resolve the controversy through mediation,then either party may pursue their claim,dispute, disagreement or controversy in a court with proper venue in the county of Tarrant, state of Texas,within which the services are being performed. Nothing herein shall be construed as a waiver or surrender of the City's governmental power or immunity. 16. LOCAL OFFICE AND CONTRACT ADMINISTRATION Contractor shall maintain during the term of this Contract a fully operational business office within the Fort Worth metropolitan area. Contractor shall charge, assign or delegate to this office full authority to transact all business required in the performance of this Contract. Contractor shall designate a qualified managing agent within the City of Fort Worth or its immediately surrounding areas and shall identify same in writing to the City. All notices may be served from the City or Director upon the designated managing agent. Service upon Contractor's managing agent shall always constitute service upon the Contractor. A. Contractor's local office shall be open during collection hours so that customers can lodge complaints, requests for information, requests for service, etc. At a minimum, the Contractor's local office shall be open during the hours of 8:00 a.m. and 5:00 p.m. Monday through Friday, and 8:00 a.m. and 3:00 p.m. on Saturdays, or until completion of tasks, whichever is latest. Contractor shall perform Collection Services from the Service Units between the hours of 7 a.m. and 7 p.m. B. Contractor's local office shall have a responsible person in charge during collection hours on Working Days, and shall be equipped with sufficient communications technology and sufficient competent personnel to receive all communications. Contractor's communication personnel shall deal with all communications in a courteous and polite manner and record all complaints. Contractor shall resolve all complaints in an expeditious manner within the following twenty-four (24) hours, excluding non-Working Days and hours. Contractor will have pre-recorded announcements for all after-hours CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 30 communications to provide information on holiday pickups and office hours as well as other information the Director may reasonably require. 17. COMPLAINTS AND NON-PERFORMANCE A. All service complaints received by the City's call center shall initially be directed to Contractor through the City's Electronic Tracking System and Contractor shall respond to the City within twenty-four (24) hours of the complaint being entered, excluding non- Working Days.When a complaint is received on the Day preceding a holiday or a weekend, Contractor shall notify the City of the complaint status on the next Working Day. Recoveries of verified Missed Pickups and Priority One Collections shall be managed as described in Section 2.F.2.d. of this Contract. B. The Director shall notify Contractor of each complaint reported to the City throughout each Day. It shall be the duty of Contractor to take whatever steps may be necessary to investigate or remedy the cause of the complaint and notify the Director of the complaint status within twenty-four (24) hours, excluding non-Working Days, after receipt of the complaint by Contractor. Contractor shall obtain this information from the City's Electronic Tracking System. C. Contractor shall provide the Director with a full explanation of the disposition of any complaint involving a customer's claim of damage to private property or personal injury as the result of actions of Contractor's employees, agents,or subcontractors through the City's Electronic Tracking System as soon as possible, with additional information provided as requested by the Director. D. Contractor shall work with the City to notify all customers about complaint procedures, rules and regulations, and Day(s) of collection on an annual basis and whenever there is a change in service, Day(s) of collection, procedures, etc. commencing in the first month of the Contract and thereafter whenever a change in service is made. Notice is to be in the form as designated by the Director distributed by Contractor to all premises served by Contractor. Such notice methodology and any materials must be approved by the Director prior to distribution and conform to all legal requirements for accessibility. E. Notwithstanding anything contained herein to the contrary, Contractor's failure to remedy the cause of the complaint, or due to events described in Section 18 below, shall not be considered a material breach of this Contract or breach of a Material Obligation of Contractor, and thereby not an event of default, UNLESS Contractor's failure to perform or act in accordance with the terms of this Contract occurs in a consistent manner as reasonably determined by the Director.Notwithstanding anything contained CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 31 in this Contract to the contrary, if the Director determines that failure has occurred in a consistent manner and the notification procedures as described in Section 13.B have been met, then the Contractor's failure to remedy complaints as described above may be considered a failure to perform a Material Obligation of Contractor. 18. LIQUIDATED DAMAGES For the purpose of computing damages for Contractor's failure to remedy an action or inaction listed below,it is agreed that the City may deduct from payments due to Contractor or to become due to Contractor, the following amounts as liquidated damages as of the Effective Date of this Contract, which are subject to the Cost Adjustment pursuant to Attachment B, except that such liquidated damages shall not apply during an Uncontrollable Circumstance: (1) Failure to clean up spilled Garbage, Refuse, or other Solid Waste resulting from loading and/or transporting- each incident at the same premises: fifty- six dollars and thirteen cents ($56.13). (2) Failure to clean up spilled Recyclables resulting from loading and/or transporting - each incident at the same premises: fifty-six dollars and thirteen cents ($56.13). (3) Failure to collect a Priority One Collection of either Solid Waste, Recyclables Storage Cart, Yard Waste, or allowable Bulky Waste Pile within the established time frame set out in Section 2.F. of this Contract: sixty dollars ($60.00)per Section 20. The City's right to assess a liquidated damage for Contractor's failure to collect a Priority One Collection is subject to the language set out in Section 2 F.2.e. of this Contract. (3) Failure or neglect to correct chronic problems in any category of service, including failure to meet any of the requirements as listed in the RFP (chronic shall mean three or more similar incidents within a ninety(90)Day period at the same premises) - each instance: five hundred and sixty-three dollars and thirty-three cents. ($561.33). (4) Chronic use of Vehicles for Solid Waste or Recyclables collection for which the manufacturer's gross allowable vehicle weight exceeds the limits allowable by City ordinance: fifty-six dollars and thirteen cents ($56.13) per occurrence. CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 32 (5) Failure to provide Solid Waste Collection Service at least once during a week for Solid Waste Storage Carts, except in cases of holidays or during an Uncontrollable Circumstance: fifty-six dollars and thirteen cents ($56.13)per occurrence per Service Unit. (6) Failure to provide residential Service Unit collection of Recyclables Storage Carts at least once during a week, except in cases of holidays or an Uncontrollable Circumstance: fifty-six dollars and thirteen cents ($56.13) per occurrence per Service Unit. (7) Failure to submit accurate reports, including monthly, quarterly, annual, employment reports and others as specified in the Contract and invoices in the specified format: non-payment of invoices until submission of an accurate and appropriately formatted invoice and complete reporting information: one hundred twelve dollars and twenty-six cents ($112.26)per occurrence. (8) Failure to notify the City of Bulky Waste Piles in excess of thirty(30)cubic yards; Contaminated Piles; Unacceptable Commercial Piles; plastic bags in Brush or Bulky Waste Piles; or Recyclables Storage Carts containing materials other than Recyclables in accordance with the applicable provisions of the Contract and/or failure to leave written notice at the Service Unit in accordance with: fifty-six dollars and thirteen cents($56.13) per Day per Service Unit until the City is notified. (9) Failure to collect Pay Piles as required by Sections 2.B.1. within seven (7) Days after notification by the City: fifty-six dollars and thirteen cents ($56.13)per Day per Service Unit until such service is completed. (10) Failure to maintain a staffed office during specified hours: fifty-six dollars and thirteen cents ($56.13)per occurrence. (11) Failure to notify the Director of changes in key personnel (e.g. Division President, Operations Manager, and Facility Manager) and/or to introduce such new personnel to the Director: fifty-six dollars and thirteen cents ($56.13)per occurrence. (12) Verified failure to complete more than three (3) Collection Day Routes in one calendar month, in accordance with these Contract terms:-$300.00 per incomplete route collection starting with the fourth route. For the purposes this subsection,"fails to complete"means Contractor does not complete the CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 33 truck's Collection Day route by 10 p.m. on the date of collection. Such failures shall be tracked and paid on a quarterly basis,not monthly basis 19. UNCONTROLLABLE CIRCUMSTANCES A. Uncontrollable Circumstance affecting Contractor's Obligations. Contractor shall be excused for the failure to perform its obligations under the terms of this Contract if such failure results from the occurrence of an Uncontrollable Circumstance. Contractor shall seek diligently and in good faith to perform its obligations, notwithstanding the occurrence of an Uncontrollable Circumstance,to mitigate the adverse effects of an Uncontrollable Circumstance, and to overcome an Uncontrollable Circumstance as soon as practicable. B. Uncontrollable Circumstance affecting City's Obligations. City shall be excused for the failure to perform its obligations under the terms of this Contract if such failure results from the occurrence of an Uncontrollable Circumstance. City shall seek diligently and in good faith to perform its obligations,notwithstanding the occurrence of an Uncontrollable Circumstance, to mitigate the adverse effects of an Uncontrollable Circumstance, and to overcome an Uncontrollable Circumstance as soon as practicable. C. Notice of an Uncontrollable Circumstance. Contractor shall provide verbal notice of an Uncontrollable Circumstance to the Director within twenty-four (24) hours of the Contractor's knowledge of such Uncontrollable Circumstance and Contractor shall follow up with written notification within three(3)Days of the Contractor's knowledge of such Uncontrollable Circumstance. Such notice shall, at a minimum,set forth the following(to the extent then known or available, or if not, as soon as practicable thereafter, a separate notice shall provide such information not provided in the first notice): 1. a description of the Uncontrollable Circumstance that has occurred; and 2. the effect, if any, of such Uncontrollable Circumstance on Contractor's performance or other obligations under this Contract. D. Reinstatement of Ability to Perform. After the resolution of an Uncontrollable Circumstance and the restoration of Collection Services, the Contractor shall provide written notice of a reinstatement of Collection Services. The City shall reinstate the Collection Services (or shall cause reinstatement of) unless this Contract shall have been previously terminated as provided herein. E. Uncontrollable Circumstance. CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 34 Neither Contractor nor the City shall be liable for the failure to perform their duties nor for any resultant damage, or loss, if such failure is caused by Uncontrollable Circumstance(s). If such Uncontrollable Circumstance persists for more than thirty (30) Days, or if after its cessation, the Contractor is unable to render full or substantial performance for a period of thirty (30) Days, the City may terminate this Contract by giving Contractor ten (10) Days advance written notice. 20. TERMINATION All work and services of this Contract may be suspended on written order of the Director or the City Manager, or the Contract may be declared terminated by the City Council for any event of default by Contractor or Contractor's failure to perform a Material Obligation of this Contract; provided, (i)the City has provided Contractor written notice of such action or inaction constituting grounds for such suspension or termination, and(ii) Contractor fails to cure such alleged action or inaction within thirty (30) Days of Contractor's receipt of such notice. If such event of default is of a nature that it cannot be cured within such thirty (30) Day period, the City will not take action to suspend or terminate this Contract provided Contractor commences the curing of such action or inaction within the thirty (30) Day period and diligently pursues the curing thereafter, as determined by the Director. A copy of any suspension order or action of the City Council shall be served on Contractor's surety. When work is suspended for any cause or causes, or when the Contract is terminated, Contractor shall discontinue the work or such part thereof as the City shall designate, whereupon the surety may, at its option, assume the Contract or that portion thereof which the City has ordered Contractor to discontinue, and may perform the same or may,with the written consent of the City, sublet the work or that portion of the work as taken over; provided, however, that the surety shall exercise its option and begin performance of the work, if at all, within five (5) Days after the written notice to discontinue the work has been served upon Contractor and upon the surety or its authorized agent. The surety, in such event, shall assume Contractor's place in all respects and shall be bound by all the terms and conditions of this Contract. Surety shall be paid by the City for all work performed by it in accordance with the terms of the Contract. In case the surety does not, within the above-specified time, assume the Contract responsibilities, or that portion thereof which the City has ordered Contractor to discontinue, then the City shall have the power to perform and complete, by contract or otherwise, as it may determine, the work herein described or such part thereof as it may deem necessary, and Contractor agrees that the City shall have the right to procure equipment, labor and materials necessary for the completion of the work. The City shall not be required to obtain the lowest bid for the work of completing the Contract, but the expense to the City for same shall be the actual cost to the City of such work. CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 35 In case such expenses shall exceed that amount which would have been payable under the Contract if the same had been fully completed by the Contractor,then the Contractor and its surety shall pay the amount of such excess to the City on notice from the City of the excess due. When any particular part of the work is being carried on by the City by contract or otherwise, under the provisions of this section, the Contractor shall continue the remainder of the work in conformity with the terms of the Contract. In all instances, Contractor and surety shall be liable for all costs incurred by City during the period after notice to discontinue the work has been served upon Contractor and the surety until such time as City either has elected to prosecute the work of this Contract itself or has replacement contractors in place to prosecute the work with or without additional City forces. 21. INDEPENDENT CONTRACTOR It is expressly understood and agreed that Contractor shall perform all work and services described herein as an independent contractor and not as an officer, agent, servant or employee of the City;that Contractor shall have exclusive control of and the exclusive right to control the details of the services and work performed hereunder, and all persons performing the same; and shall be solely responsible for the acts and omissions of its officers, agents, employees, contractors and subcontractors; that the doctrine of respondeat superior shall not apply as between City and Contractor,its officers, agents, employees,contractors and subcontractors; and that nothing herein shall be construed as creating a partnership or joint enterprise between City and Contractor. No person performing any of the work and services described hereunder shall be considered an officer, agent, servant or employee of the City. 22. INDEMNIFICATION A. CONTRACTOR SHALL RELEASE,INDEMNIFY,REIMBURSE,DEFEND,AND HOLD HARMLESS, CITY,ITS OFFICERS,AGENTS, SERVANTS AND EMPLOYEES,FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR PROPERTY DAMAGE OR LOSS AND/OR PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, ARISING OUT OF THE WORK AND SERVICES TO BE PERFORMED HEREUNDER BY CONTRACTOR, ITS OFFICERS, AGENTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, LICENSEES, OR INVITEES, INCLUDING DAMAGES,LOSS,INJURY OR DEATH,TO THE EXTENT CAUSED BY ANY ERROR, OMISSION,DEFECT,OR DEFICIENCY OF CONTRACTOR IN ACCORDANCE WITH THIS CONTRACT. CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 36 B. CONTRACTOR DOES HEREBY RELEASE, INDEMNIFY, REIMBURSE, DEFEND, AND HOLD HARMLESS THE CITY, ITS OFFICERS, AGENTS, SERVANTS, AND EMPLOYEES FROM AND AGAINST ANY AND ALL LIABILITY, CLAIMS, SUITS, DEMANDS, OR CAUSES OF ACTION WHICH MAY ARISE DUE TO ANY LOSS OR DAMAGE TO PERSONAL PROPERTY, OR PERSONAL INJURY, AND/OR DEATH OCCURRING AS A CONSEQUENCE OF THE PERFORMANCE OF THIS CONTRACT, WHEN SUCH INJURIES, DEATH, OR DAMAGES ARE CAUSED BY THE NEGLIGENCE OF CONTRACTOR, ITS OFFICERS, AGENTS, OR EMPLOYEES, OR SUBCONTRACTORS, OR THE JOINT NEGLIGENCE OF CONTRACTOR, ITS AGENTS,OR EMPLOYEES,OR SUBCONTRACTORS,AND ANY OTHER PERSON OR ENTITY, EXCLUDING ALL PARTIES INDEMNIFIED HEREUNDER, TO THE EXTENT CAUSED BY THE NEGLIGENT ACT OR OMISSION OF CONTRACTOR. C. THE OBLIGATIONS OF THE CONTRACTOR UNDER THIS SECTION SHALL INCLUDE,BUT NOT BE LIMITED TO,THE BURDEN AND EXPENSE OF DEFENDING ALL CLAIMS, SUITS, AND ADMINISTRATIVE PROCEEDINGS (WITH COUNSEL REASONABLY APPROVED BY THE INDEMNIFIED PARTIES), EVEN IF SUCH CLAIMS,SUITS OR PROCEEDINGS ARE GROUNDLESS,FALSE,OR FRAUDULENT, AND IN CONDUCTING ALL NEGOTIATIONS OF ANY DESCRIPTION,AND PAYING AND DISCHARGING, WHEN AND AS THE SAME BECOME DUE, ANY AND ALL JUDGMENTS, PENALTIES OR OTHER SUMS DUE AGAINST SUCH INDEMNIFIED PERSONS. D. UPON LEARNING OF A CLAIM, LAWSUIT, OR OTHER LIABILITY WHICH CONTRACTOR IS REQUIRED HEREUNDER TO INDEMNIFY, THE CITY SHALL PROVIDE CONTRACTOR WITH REASONABLY TIMELY NOTICE OF SAME. E. THE OBLIGATIONS OF THE CONTRACTOR UNDER THIS SECTION SHALL SURVIVE THE EXPIRATION OF THIS CONTRACT AND THE DISCHARGE OF ALL OTHER OBLIGATIONS OWED BY THE PARTIES TO EACH OTHER HEREUNDER. F. IN ALL OF ITS CONTRACTS WITH SUBCONTRACTORS FOR THE PERFORMANCE OF ANY WORK UNDER THIS CONTRACT, CONTRACTOR SHALL REQUIRE THE SUBCONTRACTORS TO INDEMNIFY THE CITY IN A MANNER CONSISTENT WITH THIS SECTION. 23. INSURANCE Contractor shall not commence work under this Contract until it has obtained all the insurance required under the Contract, and such insurance has been approved by the City. Contractor shall keep the required insurance in force throughout the term of this Contract. CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 37 A. WORKERS' COMPENSATION INSURANCE: Contractor shall maintain, during the term of this Contract, Workers' Compensation Insurance at statutory limits on all of its employees to be engaged in work under this Contract, and for all subcontractors. Employer's Liability (EL) Insurance shall also be maintained, at minimum limits as follows: $500,000 each accident/$500,000 disease each employee/$500,000 disease policy limit. B. GENERAL LIABILITY INSURANCE (CGL): Contractor shall procure and shall maintain during the term of this Contract a Commercial General Liability Insurance Policy at a minimum limits as Two Million Dollars ($2,000,000)per occurrence with an aggregate of Five Million ($5,000,000) Dollars combined single limit, including property damage and personal injury coverage, during effective dates of the Contract, or any renewal thereof, in order to protect and save the City harmless against any and all claims for damage to person, persons, or property arising from the Collection Services as described in this Contract. Contractor shall also provide excess Commercial General Liability in the amount of Ten Million Dollars ($10,000,000). C. AUTOMOBILE INSURANCE: Contractor shall procure and maintain during the term of this Contract Comprehensive Automobile Liability Insurance covering all Vehicles involved with Contractor's operations under this Contract. The minimum limits of liability coverage shall be in the amount of Two Million Dollars ($2,000,000) per occurrence combined single limit, during the effective dates of Contract and any renewal period.The named insured and employees of Contractor shall be covered under this policy. The City of Fort Worth shall be named an Additional insured on Endorsement TE 9901 or equivalent, as its interests may appear. D. ENVIRONMENTAL IMPAIRMENT LIABILITY (EIL,) AND/OR POLLUTION LIABILITY- $10,000,000 per occurrence. EIL coverage(s)must be included in policies listed in items above; or, such insurance shall be provided under separate policies. Liability for damage occurring while loading, unloading and transporting materials collected under the Contract shall be included under the Automobile Liability insurance or other policy(s). NOTE: BETWEEN A AND D ABOVE,ANY POLLUTION EXPOSURE,INCLUDING ENVIRONMENTAL IMPAIRMENT LIABILITY,ASSOCIATED WITH THE SERVICES AND OPERATIONS PERFORMED UNDER THIS CONTRACT SHALL BE COVERED;IN ADDITION TO SUDDEN AND ACCIDENTAL CONTAMINATION AND/OR POLLUTION LIABILITY COVERAGE, THERE MUST BE NON-SUDDEN AND NON-ACCIDENTAL CONTAMINATION AND/OR LIABILITY FOR GRADUAL EMISSIONS AND CLEAN-UP COSTS. The following shall pertain to all applicable policies of insurance (A. through D.) listed above: CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 38 1. Additional Insured Clause: "The City of Fort Worth,its officers,agents,employees, and representatives are added as additional insureds as respects operations and activities of, or on behalf of the named insured, performed under Contract with the City of Fort Worth." An equivalent clause may be acceptable in the discretion of the City. 2. Subcontractors shall be covered under the Contractor's insurance policies or they shall provide their own insurance coverage; and, in the latter case, documentation of coverage shall be submitted to the Contractor prior to the commencement of work and the Contractor shall deliver such to the City. 3. Prior to commencing work under this Contract, the Contractor shall deliver to the City of Fort Worth insurance certificate(s) documenting the insurance required and terms and clauses required. 4. Each insurance policy required by this Contract shall contain the following clauses: "This insurance shall not be canceled,limited in scope or coverage,or non-renewed until after thirty (30) Days prior written notice has been given to the City of Fort Worth, 1000 Throckmorton, Fort Worth, Texas 76102." Note: Written notice can be by Contractor or insurance company. 5. The insurers for all policies must be approved to do business in the State of Texas and be currently rated in terms of financial strength and solvency to the satisfaction of the Risk Manager for the City of Fort Worth. 6. The deductible or self-insured retention(SIR) affecting the coverage required shall be acceptable to the Risk Manager of the City of Fort Worth; and, in lieu of traditional insurance, alternative coverage maintained through insurance pools or risk relations groups must be also approved. 24. PERFORMANCE BOND Contractor agrees that upon the execution of this Contract and before beginning work, it shall make, execute and deliver to the City of Fort Worth a good and sufficient Performance Bond in a form furnished by the City, to secure the faithful performance of the terms and conditions herein. Such Performance Bond shall be in the amount of one hundred percent (100%) of the proposed cost of services as proposed by Contractor in the first year this Contract is in effect, and shall be renewed each year thereafter throughout the term of the Contract and any renewal periods in such amounts as the City shall require, but not less than the estimated cost of services for the following six (6) months during which the services are to be performed taking into consideration CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 39 Contractor's adjusted prices then in effect. Same shall be signed by the President or General Officer of the Contractor, together with the signature of the corporate secretary and the corporate seal. The surety shall be a surety company duly authorized to do business in the State of Texas, and acceptable to the City Council of the City of Fort Worth. In lieu of the Performance Bond, Contractor may submit an irrevocable, direct pay Letter of Credit, issued by a local banking institution, in the amount listed above, made out in favor of the City of Fort Worth. All performance security, whether Performance Bond or Letter of Credit, must be in form and content acceptable to the City Attorney and annual documentation is required in the form of written certification from the surety company or banking institution that the said Performance Bond or Letter of Credit remains in effect each year of the Contract. In the event that the Performance Bond or Letter of Credit will cease to be in effect, the surety company or banking institution and Contractor shall notify the City at least thirty (30) Days in advance of lapse, and Contractor shall make, execute and deliver to the City of Fort Worth a good and sufficient Performance Bond or replacement Letter of Credit as described above and in the amount named above no less than five (5)Days in advance of lapse of coverage. 25. LICENSES, PERMITS AND FEES Contractor agrees to obtain and pay for all licenses, permits, certificates, inspections and all Governmental Approvals and other fees required by Applicable Law or otherwise necessary to perform the services prescribed hereunder. Contractor shall also pay, at its own expense, all fees necessary to the collection and removal of Garbage,Refuse, Bulky Waste, Large Brush and Large Bulky Waste, C&D Waste,Yard Waste, and Recyclables and their residuals. 26. UNACCEPTABLE WASTE Contractor shall NOT knowingly accept, nor be required to accept for disposal, Unacceptable Waste. Contractor shall leave Unacceptable Waste at its original location and notify the Director immediately of the location and provide the Director with a description of such waste. Contractor reserves the right to reject or revoke acceptance of any Unacceptable Waste. Upon notification from the Contractor, the Director shall determine whether the waste is Unacceptable Waste or acceptable under the terms of this Contract. Contractor shall immediately return to the site to pick up the suspected waste upon notification from the Director that the waste is not Unacceptable Waste. 27. CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 40 HEALTH AND SANITATION Contractor shall establish and enforce in its operations and among its employees such regulations in regard to cleanliness and sanitation in the collection and transport of Garbage, Refuse and Solid Waste and the collection, transport and handling of Recyclables, Yard Waste, C&D Waste and Large Brush and Large Bulky Waste, as will tend to prevent the inception and spread of disease and to effectively prevent the creation of a nuisance on any property either public or private. 28. CUMULATIVE REMEDIES The rights and remedies granted in this Contract are cumulative, and the exercise of such rights shall be without prejudice to the enforcement of any other right or remedy authorized by law or this Contract. No waiver of any violation shall be deemed or construed by a court of law or an arbitrator to constitute a waiver of any other violation or other breach of any of the terms, provisions, and covenants contained herein. 29. REMEDIES FOR BREACH The parties agree that, except as otherwise provided in Section 18 and 20 with respect to termination, in the event that either party breaches this Contract, the other party may exercise any legal rights it has under this Contract under the security instruments and under Applicable Law to recover damages or to secure specific performance, and that such rights to recover damages and to secure specific performance shall ordinarily constitute adequate remedies for any such breach. Neither party shall have the right to terminate this Contract for cause except upon the occurrence of an event of default unless otherwise stated herein. 30. NO WAIVER OF RIGHTS No failure by the City or by the Contractor to insist upon the strict performance of any term, covenant, agreement, provision, condition or limitation of this Contract or to exercise any right or remedy hereunder, and no acceptance by the City of full or partial payment during the continuance of any such breach, shall constitute a waiver of any such breach or of such term, covenant, agreement,provision,condition or limitation. No term,covenant, agreement,provision, condition or limitation of this Contract to be kept, observed or performed by the City or by the Contractor, and no breach thereof, may be waived, altered or modified except by a written instrument executed and acknowledged by and delivered to the City and the Contractor. No waiver of any breach shall affect or alter this Contract, but each and every term, covenant, agreement, CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 41 provision, condition and limitation of this Contract shall continue in full force and effect with respect to any other then existing or subsequent breach thereof. This Contract may be terminated only by a written instrument of termination executed by the appropriate party and delivered to the non-terminating party (except by expiration of the term of this Contract). 31. SURVIVAL OF CERTAIN PROVISIONS UPON TERMINATION All representations and warranties of the parties contained in this Contract,the Contractor's indemnity obligations in this Contract with respect to events that occurred prior to the termination, the rights and obligations of the parties hereto pursuant to Sections 14, 15, 18, 22, 23 24, 25, 29 and 30 and all other provisions of this Contract that so provide shall survive the termination of this Contract. No termination of this Contract shall (1) limit or otherwise affect the respective rights and obligations of the parties hereto accrued prior to the date of such termination, or(2)preclude either party from impleading the other party in any legal proceeding originated by a third-party as to any matter occurring during the term of this Contract. 32. RIGHT TO AUDIT Until the expiration of three (3) years after the final payment under this Contract, the City shall have access to and the right to examine any directly pertinent books, documents, papers and records of the Contractor and Guarantor involving transactions relating to this Contract. Contractor further agrees to include in all its subcontracts hereunder a provision to the effect that the subcontractor agrees that the City shall,until the expiration of three(3)years after final payment under the subcontract, have access to papers and records of such subcontractor involving transactions relating to the subcontract. The term "subcontract" as used herein includes purchase orders. 33. GOVERNMENTAL POWERS AND IMMUNITIES It is understood and agreed that, by execution of this Contract, City does not waive or surrender any of its governmental powers or immunities. Contractor acknowledges that the City is a Governmental Body and as such has certain rights, powers and duties that may affect the Contractor's rights or obligations under the Contract. The Contractor agrees that no action by the City acting in its governmental capacity shall be construed as a breach or default by the City under this Contract,nor shall any such action excuse the Contractor from performance of its obligations under this Contract;provided,however,if such action constitutes an Uncontrollable Circumstance, the Contractor may assert any rights it may have under this Contract as is permitted for any other Uncontrollable Circumstance. CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 42 34. COMPLIANCE WITH LAWS Contractor, its officers, agents, employees, contractors and subcontractors, shall abide by and comply with all Applicable Law, federal, state and local, including the City's charter and all ordinances,rules and regulations of the City of Fort Worth. It is agreed and understood that,if City calls the attention of Contractor to any such violations on the part of Contractor,its officers,agents, employees, contractors or subcontractors, then Contractor shall immediately desist from and correct such violation. 35. DISCRIMINATION PROHIBITED Contractor, in the execution,performance or attempted performance of this Contract, shall not discriminate against any person or persons on any unlawful basis. This Contract is made and entered into with reference specifically to Article III of Chapter 17 of the Code of the City of Fort Worth (1986), as amended, an ordinance prohibiting discrimination, and Contractor hereby covenants and agrees that it has fully complied with all provisions of same and that no employee or employee-applicant has been discriminated against or will be discriminated against by Contractor in violation of said ordinance. Contractor warrants that it is an equal opportunity employer. In addition, Contractor, in the execution, performance or attempted performance of this Contract, shall not discriminate on any prohibited basis and shall fully comply with all other applicable federal, state and local laws concerning discrimination. 36. NON-ASSIGNMENT Contractor shall not assign, transfer, sublet, convey, or otherwise dispose of the Contract or the rights,title, or interest in or to the same or any part thereof without the previous consent of the City Council with concurrence of the surety. In the event Contractor does, without such previous consent, assign, transfer, sublet, convey or otherwise dispose of the Contract or of the right,title or interest therein or any part thereof, City may, at its discretion, terminate the Contract in accordance with Section 21 hereof. Consent will not be withheld unreasonably in the case of a proposed assignment to an Affiliate of Contractor, but may be withheld for any reason or for no reason in the case of a proposed assignment by Contractor to a non-Affiliate, provided that Contractor, Guarantor and surety shall not be released from their respective obligations hereunder. In the event of an assignment of any duty required under this Contract, Contractor and Guarantor shall assume responsibility for performance of that duty including all liabilities pursuant to this CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 43 Contract. The City may not assign its rights and privileges under this Contract without the prior written consent of the Contractor which shall not be unreasonably withheld. 37. SUCCESSORS AND ASSIGNS All of the terms, covenants, and agreements contained herein shall be binding upon and shall inure to the benefit of successors and assigns of the respective parties hereto. 38. NOTICES Any notices (unless otherwise specified herein),bills,invoices or reports required by this Contract shall be sufficient if sent by the parties in the United States mail,postage paid,to the address noted below: If to the City: Assistant Director Solid Waste Services Division Department of Code Compliance City of Fort Worth 4100 Columbus Trail Fort Worth, Texas 76133 If to the Contractor: Waste Management of Texas, Inc. c/o Public Sector Manager 520 E. Corporate, Suite 100 Lewisville, TX 75057 And CT Corporation 350 North St. Paul Street Suite 2900 Dallas, TX 75201 39. VENUE Should any action, whether real or asserted, at law or in equity, arise out of the terms and conditions of this Contract,venue for said action shall be in Tarrant County, Texas. CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 44 40. SAVINGS CLAUSE In case any one or more of the provisions contained in this Contract shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Contract; this Contract shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. 41. NON-APPROPRIATION In the event that no funds or insufficient funds are collected, appropriated and budgeted or funds are otherwise unavailable for payment of amounts due hereunder by City to Contractor, City shall notify Contractor and this Contract shall terminate on the last Day of the fiscal period for which appropriations were made without penalty or expense to City of any kind whatsoever,except as to the payment of amounts due and payable for which appropriations have been made for said fiscal period. City covenants that it will provide Contractor as much notice as possible of this contingency. Provided, however, that this Section 43 is not intended to grant to the City an independent ground for termination of this Contract separate and apart from any grounds for termination for non-appropriation or non-availability of funds which would be provided to City by reason of Tex. Const. Ann. Art. 11, Sec. 5 and 7. 42. PROHIBITION ON BOYCOTTING ENERGY COMPANIES Contractor acknowledges that in accordance with Chapter 2274 of the Texas Government Code, as added by Acts 2021, 87th Leg., R.S., S.B. 13, § 2, the City is prohibited from entering into a contract for goods or services that has a value of$100,000 or more that is to be paid wholly or partly from public funds of the City with a company with 10 or more full-time employees unless the contract contains a written verification from the company that it: (1) does not boycott energy companies; and (2)will not boycott energy companies during the term of the contract. The terms "boycott energy company" and"company"have the meaning ascribed to those terms by Chapter 2274 of the Texas Government Code, as added by Acts 2021, 87th Leg.,R.S., S.B. 13, § 2. To the extent that Chapter 2274 of the Government Code is applicable to this Agreement, by signing this Agreement, Contractor certifies that Contractor's signature provides written verification to the City that Contractor: (1) does not boycott energy companies; and (2) will not boycott energy companies during the term of this Agreement. 43. PROHIBITION ON DISCRIMINATION AGAINST FIREARM AND AMMUNITION INDUSTRIES CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 45 Contractor acknowledges that except as otherwise provided by Chapter 2274 of the Texas Government Code, as added by Acts 2021, 87th Leg., R.S., S.B. 19, § 1, the City is prohibited from entering into a contract for goods or services that has a value of$100,000 or more that is to be paid wholly or partly from public funds of the City with a company with 10 or more full-time employees unless the contract contains a written verification from the company that it: (1) does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association; and (2) will not discriminate during the term of the contract against a firearm entity or firearm trade association. The terms"discriminate,""firearm entity"and"firearm trade association" have the meaning ascribed to those terms by Chapter 2274 of the Texas Government Code,as added by Acts 2021, 87th Leg.,R.S.,S.B. 19, § 1. To the extent that Chapter 2274 of the Government Code is applicable to this Agreement, by signing this Agreement, Contractor certifies that Contractor's signature provides written verification to the City that Contractor: (1)does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association; and(2)will not discriminate against a firearm entity or firearm trade association during the term of this Agreement. 44. PROHIBITION ON CONTRACTING WITH COMPANIES THAT BOYCOTT ISRAEL Contractor unless a sole proprietor, acknowledges that in accordance with Chapter 2270 of the Texas Government Code, if Contractor has 10 or more full time-employees and the contract value is $100,000 or more,the City is prohibited from entering into a contract with a company for goods or services unless the contract contains a written verification from the company that it: (1) does not boycott Israel; and (2) will not boycott Israel during the term of the contract. The terms "boycott Israel" and "company" shall have the meanings ascribed to those terms in Section 808.001 of the Texas Government Code. By signing this contract, Contractor certifies that Contractor's signature provides written verification to the City that if Chapter 2270, Texas Government Code applies, Contractor: (1) does not boycott Israel; and (2) will not boycott Israel during the term of the contract. 45. ATTACHMENTS All Attachments to this Contract are incorporated as part of this Agreement for the purposes set forth herein, as follows: Attachment A-Base Rates for Contractor Services Attachment B-Cost Adjustment Method and Example Attachment C-Performance Score Card Attachment D -Storm Event Form and Calculation CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 46 46. ELECTRONIC SIGNATURES This Agreement may be executed by electronic signature,which will be considered as an original signature for all purposes and have the same force and effect as an original signature. For these purposes, "electronic signature" means electronically scanned and transmitted versions (e.g. via pdf file or facsimile transmission) of an original signature, or signatures electronically inserted via software such as Adobe Sign. This Agreement shall be fully executed on the date signed by the City Secretary as shown below. CITY OF FORT WORTH,TEXAS WASTE MANAGEMENT OF TEXAS,INC. Valerie wgshinciton n peak 7Swli h Valerie Washington(May 9,202215:06 CDT) Donald J Smith(May4,2022 16:43 CDT) Valerie Washington Donald J. Smith Assistant City Manager Date Signed: May 4,2022 Recommended by: Brandon Bennett(May 6,202211:31 CDT) Brandon Bennett Director of Code Compliance APPROVED AS TO FORM AND LEGALITY: ( I�� Christopher Au tria(May 6,202212:46 CDT) Christopher Austria M&C: 21-0860 Assistant City Attorney 1295: N/A �F 4 FpRt 0 ° °o°°°° Laoo� =a�o° °ATTEST: 0-0 °°0 J ette S.Goodall(May 9,2022 15: DT) oo s�00 �d 101 Jannette S. Goodall ���a�r000000 cy �p City Secretary �nnaoa CONTRACT COMPLIANCE MANAGER By signing,I acknowledge that I am the person responsible for the monitoring and administration of this contract,including ensuring all performance and reporting requirements. C&ik�LWAItL- Christian Harper(May 4,20 216:45 CDT) Christian Harper Code Contract Services Administrator CONTRACT FOR COLLECTION SERVICES Final Version 5.3.2022 47 OFFICIAL RECORD CITY SECRETARY FT.WORTH, TX ATTACHMENT A Cover Sheet � N t � O C C C C C C .2 m (t7 ~ 0 0 0 0 0 0 'a a] U p�q u u u u u u CL •� f�C 4' P c a 0 0 0 0 0 0 2 `= f° 4' U U U U U U V 3 C L U y y aJ aJ aJ W W W O d UA E 3 3 3 3 3 3 'W, M aJ L U O CL ai ci c s « Q Q Q Q LJ E N M I Ln lD \ U N Z Z Z Z > Q O L L L L L L M O w O Ln} + + + + + U a] U a aJ t Q O O O O O O d m bA E E E E E E fC O O E N O v 00 c c c c c c m '0 j o c O 0\0 MM 0\0 0\0 d ~ AJ A) O 7 E v 00 O I� dl � C) dl C) -O C � � +J ' —A -A N � u1 � p s s O d M co N i/> i/)- i/)- i/)- i/)- i/)- U of t/)- U _ O U }J a- a- a"� a"� L a- c c Co Ln E C +' 2! m Q - L aj •ICI LL aj = L = _ 00 - C ++ 3 \ aJ \ \ O p > aJ U N M M 0 aJ C.0 U L 4� t t ate- ate- a- a) 4 J p C C C C m N V mti \ (LO \ \ \ Q'a ai U U 7 ai CL _ = L = 2 2 00 O aJ aJ y bA 0000 00 Q 00 0000 O\l � N O n3 N C N N n r4 t/? ai n3 O CC N M rr M m Ol t/? > c L w aJ aJ c cz E C a O O _N O v �Q O LO O Y 30 +>—� aJ � i > aJ C) ci +-+ 7 i L � a-+ aJ l0 l0 c -0 Ln U C �n Ln CO aJ Ln C u lU0 E � m Ln.� co C ate-+ � L (No p 7 '> 7 Ca E U t O v C (10 } N aJ _ O U p aJ +' 4 J 7 ago } E °J \ cco O f° c O O O O 3 U .2 c t m +, L aJ aJ c O c Nci c p � o C L (Ij u c�'o n 0 c U a o aai ao � = a, m Q o � u v c� U aJ aJ m ai co U 2 co GJ aJ O n aJ N > .ai U O n U ^ L a Ln cD L C U L + , _ L > L dA NaJ 3 aJ J co U C 3 N .L O N C Q b4 aJ 4 J U f a v ;� (10 L C) ci U N O N ���( u U_ aJ L v ai CL u_ u co p 0 W O .� aJ _ b4 ._ O W L > U (p > Ln C l0 N t CL O `L° aJ co } U ° aJ O U C E aJ > � z O +� �° N O Cci Ln m O c j cNo c O CL p ci N aJ .0 O Ln Ln Co maJ 3 +� u Ln > = L U O aJ i }' +' U IA 7 Co U p a 0 _ E aJ 7 - 'n aJ >- U U W L p 4 J '> aJ O O d aJ aJ C . O W M aJ 7 +-+ E � I(n0 M M L U i >` ,� dA E L N (0 Ln XO U } Q O E QJ V Ln i N •? L O aJ +� aJ i L aYJ N o o E CL o a�J io > Co c aJ U Co c O a ? E U Q U N L O O to U — p u O N O (% a) 3 ci > (o n3 v \ o .o .0 o .0 ci a C o O M u o f6 ? U °; p U N U aJ E c }� c } O }� c6 L -0 }' U C W aJ aJ `� aJ > L = N > U O U c'o 0 0u U oo � t U Q � = � N w U = � O V) = ai L IS ti N V7 Q N Co O 4J -0L N C Ln Ln aJ Ln t/} E aJ -a U a) O C L {/� � (o U C = (n U o '� -0 v > Z u c t m 7 O C U U cr � 0 aj U 'U Lo aJ N C E L C LLn =0 -0 v ' O u aj Q E CL LnC 4 7 \ 4-1 to ai \ m 4-1M O '- M U O Ln m Q UCa O C l0 C L 1p LJ i n O Ln C O W Ln O O N c-I -0 V)- m U a t/) a V)- t/)- O t N U to -0 4, aJ co c CO U C Ln U > L O N L Ln a) O co `7- O LJ N a,,, N aJ 4 J cn " Q Q CL C) Q v a p a) " Z Z U l0 3 to rn C M >- M cr >- O N -I r-I ' r-I U r-I a) U 0 Ln Q l0 l0 l0 i O N Ln to Ln 7 Ln 7 7 O Ln O V)- >- V)- U V)- (n U a i/} U aJ t U a"' to - aJ n3 w CO U C Ln U > L O 7 L aJ 1 co � O iJ O a) L E 4 J N a) +' V1 Q Q a a) a) a L O a 3 O j 4J Z Z M C M >- M cr >- O N -I r-I ' r-I U r-I a) U ._ Ln l0 l0 z l0 z i O E Ln (o Ln D Ln D O Ln L V)- >• V)- U i/} (n U a i/} a) t O to -0 O L C L 4' C m L O C v� 4, C 4 J L `� +J O co Ln n3 4- a) N co C O c J _ N C Z 7 Q a C N _ a) U m a) p a) N � � u L U � Ov WAD 4 7 to N U to N U4� Ca ,� U C Ln aJ to co - O O aJ Y 4- = 7 a aJ Z +J a 4, 4 to U U = E L L} U a O C >, a p c ) O Q O N O N E O ; C O _ E Lu n O U 7 to U N C OU v o m L v a ° v o4-1 _ ao v N Q v — v dA +' > +J U a v aJ L C O +J aJ ,p�( _� C 4_ 4� ai L m 'L W O Ln•� O lu U L C N cr aJ E _ L L !E (� 4 J t 'co co Lo a v o v U t ;� v O ++ p �' +J +J O (� E w U 4J 4J U c a a�j a 4-1O aJ C C O L Q 4 J M O 'n C n U Q O a..i 0 a) (� U U O � a U +' aC) V O 4 J CU N 4 J C — ri C U Z O O N to O C > O +J z +J N O 7 iJ 0 U +� tvD LJ .L O U C i C W 4J O CL z CL C 4O Q C O Q — 3 Ln to O U E O CO C C c C C C v� O O o Co to m C .aJ aJ ao 4, O .0 U v a 7 a a v CO U L v v i — a E O t a v O L a o E o u co O O — cn cn Lu 3 cn U CO co U m U ._ a U U a m a co U 0 Q ATTACHMENT B Cover Sheet ATTACHMENT B Cost Adjustment Method and Example Effective with the Fiscal Year 2022(i.e.,the October 1,2021 through September 30,2022 period), the Contractor shall charge and the City shall pay the Base Rates set forth in Attachment A for the services Contractor is or may provide under this Contract. The Base Rates shall be adjusted annually by the Contractor beginning with Fiscal Year 2023 (i.e., the October 1, 2022 through September 30,2023 period)and for all remaining Contract Years of the Term of Contract pursuant to the terms set out in this Attachment B. The Base Rates will be adjusted upward or downward to reflect changes in the indices using the Cost Adjustment Method applicable to Collection, and the methodology as set forth below, on the Cost Adjustment Date. The parties agree that there shall be no Cost Adjustment for Fiscal Year 2022 (i.e., the October 1, 2021 through September 30, 2022 period). All indices used are published by either the U.S. Bureau of Labor Statistics (BLS) or U.S Energy Information Administration. Since some BLS or EIA indices are not finalized for several months, cost adjustments may be calculated after March. If BLS or EIA changes the methodology for calculating one of the indices used by the parties herein which causes historical data used to calculate this cost adjustment to be restated, such changes shall only apply to future adjustments and not to adjustments already implemented. Cost adjustments shall not exceed five(5)percent in any Contract Year and fifteen (15)percent in any four consecutive years. As soon as possible after a Cost Adjustment Date, Contractor shall send to the City a comparative statement setting out the change determined through the Cost Adjustment Method and the increase or decrease in the Base Rates that will be charged by the Contractor on the Cost Adjustment Date. On the next billing date after the receipt and approval by the City of the requested cost adjustment, the City shall pay to the Contractor, or the Contractor shall credit to the City, as the case may be, a lump sum equal to any applicable increase or decrease,retroactive to October I of the adjustment year, and thereafter, the Base Rates charged by the Contractor shall be modified to reflect any change until the next Cost Adjustment Date, and a comparative statement is received and approved by the City. Any fixed pass-through or add-on surcharges or costs, such as State fees on tonnage, host municipality benefit fees, or any other government mandated surcharge, shall not apply to the cost adjustment and will be deducted from the Base Rates prior to calculating any annual cost adjustment. If any index defined herein shall not be determined and published or if any index as it is constituted on the Contract Date is thereafter substantially changed, there shall be substituted for such index another index which is determined and published on a basis substantially similar to the index being replaced as shall be mutually agreed upon by the City and the Contractor. Attachment B Page 1 of 3 Listed below are the indices and Contractor's percentages of the indices that shall constitute the basis for adjustment of the Base Rates under this Contract. The percent of change applied to the cost adjustment shall be carried out to three (3) decimal places without rounding. Indices and Contractor's Percentage of Each Index to be Applied in the Cost Adjustment (excluding the Education Payment) • The parties agree that 90% of the adjustment in Base Rates shall be made using the CPI-U (Series ID: CUUROOOOSEHG02) Garbage and Trash Collection—currently located at the following link:https://beta.bls.gov/dataViewer/view/timeseries/CUUROOOOSEHG02.The CPI-U adjustment shall be based on the average monthly percentage change in the CPI-U over the applicable 12-month measurement period from April to March. Once that average index change is determined,then the average index change for the 12-month period during the immediately prior year will be subtracted therefrom. The difference shall be the CPI-U index adjustment that will be applied to the then current Base Rates; and • The parties agree that 10% of the adjustment in Base Rates shall be made using the EIA Natural Gas Texas Commercial (N3020TX3.M) index — currently located at https://www.eia.gov/dnav/ng/hist/n302Otx3m.htm to determine the percentage adjustment. The EIA adjustment shall be based on the average monthly percentage change in the EIA index over the applicable 12-month measurement period from April to March. Once that average index change is determined, then the average index change for the 12-month period during the immediately prior year will be subtracted therefrom. The difference shall be the EIA index adjustment that will be applied to the then current Base Rates. Indices and Contractor's Percentage of Each Index to be Applied in the Cost Adjustment for the Education Payment The parties agree that the CPI-U (Consumer Price Index for Urban Wage Earners and Clerical Workers) for the Dallas-Fort Worth MSA CWURA316SAO shall be used to adjust the Education Payment. [Examples of the Cost Adjustment follow on this page] Attachment B Page 2 of 3 Example Cost Adjustment (No cost adjustment was implemented in FY22) Residential Collections: Index From 2020 To 2021.Cost Adjustment Goes Into Effect 10/1/2021 Fiscal Year 2022 April-March April-March Average Average Change %Applied to Cost INDEX Index# WEIGHT 19120 2012l #Chan e % Adjustment Garbage&Trash Index Garbage&Trash Index 90 485.91 504.4 18.36 3.780% 3.4016 EIA Texas Commercial EIA Texas Commercial 10% 6.34 7.1 0.84 1329% 1.3291 4.7307 Composite Index Change: 100 Actual Adjustment 5%max!r 15%4 rs 4.7307 Education Payment:Index From 2020 To 2021.Cost Adjustment Goes Into Effect 1011/2021 Fiscal Year 2022 April-March April-March Average Average Change %Applied to Cost INDEX Index# WEIGHT 19120 20121 #Chancle % Ad ustment CPI-U(Consumer Price Index for Urban Wage Earners and Clerical Workers)for the Dallas-Fort Worth MSA CWURA316SAO 100 244.46 246.39 193C 0.789% 0.7893 100 0.7893 aSTADJUSTMENT CURRENT RATE ADJUST°/a ADJUST$ NEW RATE Education Payment $ 4.21 0.789%$ 0.03 $ 4.24 ervice Curbside Residential $ 13.28 4.731 a/c $ 0.63 $ 13.90 Disabled Carryout $ 13.28 4.731 a/c $ 0.63 $ 13.90 Elective Carryout $ 49.79 4.731°/ $ 2.36 $ 52.15 Aggregate Conlainers $ 27.45 4.731°/ $ 1.30 $ 28.75 Additional Carts $ 3.48 4.731 O/c $ 0.16 $ 3.64 Commercial per Week #of Cart 1 1 $ 14.78 4.731%$ 0.70 $ 15.48 1 $ 18.99 4.731°i $ 0.90 $ 19.89 1 $ 27.43 4.731%$ 1.30 $ 28.72 1 $ 40.08 4.731%$ 1.90 $ 41.97 1 $ 56.98 4.731%$ 2.70 $ 59.68 1 $ 78.04 4.731%$ 3.69 $ 81.74 Day Bags and Violation Bags $ 1.40 4.731%$ 0.07 $ 1.46 ulkNothin Out $ 50.52 4.731%$ 2.39 $ 52.91 Charge per 5 Bulk Charge Piles cubic yards $ 56.13 4.731°/ $ 2.66 $ 58.78 ecial Event H o u rly Rate $ 100.99 4.731 O/c $ 4.78 $ 105.77 4.731°/ Liquidated Damages Over 3 missed $ 561.33 4.731°/ $ 26.55 $ 587.89 Liquidated Damages Over 24 hours $ 56.13 4.731°/ $ 2.66 $ 58.78 Liquidated Damages Bulk>5 .m-Sat $ 280.68 4.731°/ $ 13.28 $ 293.95 Attachment B Page 3 of 3 ATTACHMENT C Cover Sheet o ro� o 0 0 ono�N m - u Y p n z a c v a cm �P o0000 >>> 0 o° o v o°° a o a ^ o _ ' � TI� �p T a MOM o 0 El, [ vo 3 13 O O O O O - m m m m o O O O O o w E ml m m - 0000 - 3 m m m m .`ii °�'ro v00i v om o n m p e O O O O O ry a rn m o°m ry o ry m o =o O O O O O y v va° c - ° ^ o,N tiov von - 0000o 0or 2 w E o O1 o m o E v 'nwl 'n I Wl o_ ' _o V aam a ° w mo° mom c ryI c > Iq w 3 o W m y n d a ° ^IT 79 o v 3 3 3 _ N 3 mm 00 O c EN my^ ,` w E m m aam c oo D.Fo v 3 Y a a s m a a - - 3 F O v a n `^° o� o o n m o 0 lw } aam a Eo o°v o ry o v �n m o m E u^ 3 3 a z mmw m ro mmo ° m - a a a mmw a So _ N ma�� a m o°� rvo o o0 0o m 1}L a j a@ m ^o v o o m 3 3 v - 3 a 2 O m ° o a ' r01' O o � o W o O p v - - 3 } - _ 0 ¢¢ ¢¢ E z z z z Vom o E ' _ Eo, - Qd E o W o EC mo 3 E _ - 0 - o o' -o m c } _ _ r _ - °' .E w 3 a E m r F _ O o a v = W E u E c o o LU z F ¢ - - `�° oEvZ o - 01 0 - w _v = m ��a w' va wa = dV»y-O va _ u Z c m o w w w a w a w a w m _ E E w w .o o o o a _ _ v i E v v u o ° E o `- u s m o Z -m E E E E o c E c c c 3 '0 3 3 3 0 3 " ° v v - - A LLI p a w E q wE o o°a oOa ° �,tt E E " E3 _ ° ° Cr 'd w E -' E 01 ' �0 v E vE ` a > �•ti - w >w m o3 S n w u' ----- I---I u � E�3,-- o � � ¢ ¢ a ¢ a ¢ o¢ - m��3 3 e _ W N2 to - `w w - O 3 Z Goal Sheet Inputs/Components 1 The success metric has changed from Misses/Household to Priority Ones* 2 The service improvement category must align with the LID category being waived(Example:Garbage improvement being met only waives garbage LID) 3 Each service line will be tracked independently and on a monthly basis,but the accumulation of the three(3)months actuals will determine if the quarterly goal has been achieved or not,based on the established improvement goal 4 Each month will be the average of that month's previous 4 year history to adjust for seasonality across all service lines 5 Historical monthly averages will be calculated using FY2016,FY2017,FY2018&FY2019(FY2020 and FY2021 were removed due to COVID) 6 Each service line will have its own%improvement goal-20%for Garbage&Recycling and 10%for Yard Waste&Bulk Waste 7 Data will be tracked monthly 8 Liquidated damages will be waived or assessed/billed based on the accumulated monthly actuals below or above the quarterly improvement goal 9 City and WM agree to revisit these goals on an annual basis and consider warranted adjustment every two years(or upon mutual agreement) Other notes A These goals may not apply during months with a recognized storm event and consideration of waiving all Yard&Bulk LID during a storm event upon mutual agreement between the City and WM. B Consider WM's request of giving them 36 hours on Yard&Bulk vs 24(Houston came back and confirmed that 36 hours would give them enough additional time to help recover these misses within the next operational day) C The scorecard will be updated to match whatever is agreed on here *City and WM will continue tracking and using a"Misses or other identified monthly Customer Service"performance metric for operational performance(weekly,monthly and annually).However,this will not be included in any calculation for billing or waiving Liquidated Damages. Attachment C Page 2 of 6 g entvrmriry One s—i.uee lmprwement Goal sheet far city§perta...smm— e/2a/2a21 Fecal Year Goal p emem wi nppry —22&f 2023 r.f IWM Loin a etforeach servkeliee Garbs a Ya1tlwereie8ia e8/18/21 1st Quarter Goal by ed Quarter Goal 3r4 Quarter Goal by 6[M1 Quarter Goal eays Fiscal Year by cwy Fhral Year W.Fiscal Year hi, r by cw Il Year reagee "gone Rayellea brny one M.th Yam Wass brMyoOe % IT Bulk west brMyoO e I Hit % 1stnG-1 en Quarter Goal areQuarterGoalby atM1 QuarterGoal e by city,Fhral Year W.Fiscal Year hly r bycw Il near 20% Fez a �nr8y one neemem 27 11 21 19 11 L9 34 �I .1 R=", arityoee a aeemem mace arMoee Rmgm wa: R�yollea ar, Rmgmw Attachment C Page 3 of 6 ry o� ry a ry ry o ry m ry a � E� O a _ N cz w O v v �711' o � ro o o v o .rvi o o m 2.m m e ry c w O = E mw 4/ ogw wogvo .Olio.^. rvo o a a'm m �ry °..'o.^. ry oo m d a c_ C. _ N n -n n nO o O n o m 0o o og v v 3 w mo u o Wga ion o^oos � �°O: � a� ion o^oo 0 0^0g o — O N f0 } n �m0 W— rvory moW 0 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a ti N o > a a o a s n m o Q L O 0 O ti O N N M N N N N rl O m (� Q m N O o 0 o O O O 0 0 0 O O O O O C 0 o O O 0 0 0 0 O O 0 0 0 00 4343a -a O o o O O o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N ti N ti N ci v�c-I c-I N ti N ti � ti N ti ti N ti N ti ti L L L L N N v v w w N N v N w w N w w J J J J _ Mn _ _ _ Mn M o 0 0 0 V N L N t N � N +S+ LL 3 0 O o 0 0 iy m w w x w .V u° 0 0 u° 4 o uo 0 w m o w c o w u c � V Q a o ° o > o o r o a o E £ @ U U U L @ U Y \_ U @ U U w N N U h U @ u u Y g w '� u C u N m J U -O Y J y J U -O C Y J J U C C W N Ol i6 J m N O) im N H z z r m m m z s r o m do z z @ N v> N Q N N N N N N N ~ N -0 N N Y Y Gv_�i v_� CC_n i v� J v_ v_ G�i G G �i b0 b0 G x C _ G x G x N U N U ZCCUQQr Y „ 1NN uo o o o o o o o 0 0 0 0 0 0{y roror r M ror o t r M ror o o v oo o w g o z s \ z s \ >w \ o tD . > > 0 cD cowD t Nff mEi N0O c 2 c c N o v o oZ C o o o o „N Nua mm2 2o 2 g 2 _ o -wc'v0mou�No7> -va'v0uwou�Na> -vc'v0mou�Na7> -va'v0 L -0YY Y m m N > N o o o > >o 7 OF (D F 0 F uwou�Na> LLJ wU�rvCy'm F F l7 F m F F 0 > > > > N N � � 3 u Y Priority One Issues By Month(Total of WM+KWS) Total Total 12,664 Bulk Waste 5,606 Garbage Collection 3,641 Recycling Collection 2,518 Yard Waste 899 10/2015 11/2015 12/2015 1/2016 2/2016 3/2016 4/2016 5/2016 6/2016 7/2016 8/2016 9/2016 Total 347 364 391 163 119 239 125 117 240 141 110 165 Bulk Waste 134 132 128 67 41 85 66 57 131 51 31 70 Garbage Collection 138 152 132 56 54 104 33 35 65 50 50 52 Recycling Collection 60 55 81 28 17 32 19 17 27 36 23 39 Yard Waste 15 25 50 12 7 18 7 8 17 4 6 4 10/2016 11/2016 12/2016 1/2017 2/2017 3/2017 4/2017 5/2017 6/2017 7/2017 8/2017 9/2017 Total 108 83 117 99 97 257 48 171 218 213 206 167 Bulk Waste 44 34 47 27 45 169 1 47 149 90 54 101 Garbage Collection 35 29 45 48 24 37 16 63 36 57 86 37 Recycling Collection 26 17 20 21 12 18 31 53 30 61 57 27 Yard Waste 3 3 5 3 16 33 0 8 3 5 9 2 10/2017 11/2017 12/2017 1/2018 2/2018 3/2018 4/2018 5/2018 6/2018 7/2018 8/2018 9/2018 Total 341 282 224 155 63 240 193 500 504 422 509 219 Bulk Waste 147 106 103 15 24 88 76 152 140 210 241 113 Garbage Collection 86 69 61 66 17 46 29 170 224 115 135 49 Recycling Collection 107 103 58 70 17 42 42 142 110 77 102 36 Yard Waste 1 4 2 4 5 64 46 36 30 20 31 21 10/2018 11/2018 12/2018 112019 2/2019 3/2019 4/2019 5/2019 6/2019 7/2019 8/2019 9/2019 Total 154 445 258 375 490 197 213 882 583 771 226 113 Bulk Waste 79 201 75 79 355 51 51 465 329 541 121 43 Garbage Collection 37 90 86 126 85 84 101 226 118 113 50 24 Recycling Collection 29 98 48 147 50 50 54 126 65 70 41 27 Yard Waste 9 56 49 23 0 12 7 65 71 47 14 19 Average Monthly Number October November December January February March April May June July August September Bulk Waste 101 118 88 47 116 98 49 180 187 223 112 82 Garbage Collection 74 85 81 74 45 68 45 124 111 84 80 41 Recycling Collection 56 68 52 67 24 36 37 85 58 61 56 32 Yard Waste 7 22 271 11 71 32 15 29 30 191 15 12 Average Monthly Number October November December January February March Aril May June July August September Garbage Collection WM 49 49 50 34 14 26 14 32 24 45 42 19 Garbage Collection KWS 25 36 31 41 31 42 30 91 87 39 38 T1- Recycling Collection WM 25 27 27 22 7 13 15 17 15 32 24 14 Recycling Collection KWS 30 41 25 44 17 23 22 68 43 30 32 18 Bulk Waste 000%WM 101 118 88 47 116 98 49 180 187 223 112 82 Yard Waste 100%WM 7 22 27 11 7 32 15 29 30 19 15 12 Attachment C Page 6 of 6 ATTACHMENT D Cover Sheet o >' N L Ca bb cz O O O O LL. 4� 4� 4� L� U U U O O O N — Y O O O O O O O O O O O O O O 'A U U U (A N O O O O O O a O Ol Ol Ol O U U U Z v > > > v Q > 4J 4J 4J C C C LU o 0 0 W L U U U U U U Ln Ln Ln O O O C C C O O O Q �• m O O O L L L -- >O U U U Q Q Q N E E E U A E U U U 7 z Ln w ?• O rl 00 N 00 00 Ln O M ri Ln Ln ri M m Ln r- Ct H L M n �t �t l0 O (.0 0 0 r-I -zl- rl r- W L O O N M H } N Ln N r- r- 00 m 00 N m M M r- 0. } Ln 00 l0 Ol + LD LD LD Ln n O Ol 00 00 LD 00 l0 Q + M 00 l0 00 r 1 O O Y c ri 00 Lri0 Y c ri V N m N Owl Co a o > 41 Q� w O m m N r- oo Ln O to N oo w rn ri oo � woo 4; ri LD M O to ill ri -zl- N -zl- ri Ln Ln 4; LD 00 M Q A v1 00 00 O 110 M Ln ri O 1.0 Ln rl N Z v7 N Ill O A j O M 0 N N c-I N 0 j O N M H LU Co Ln a LL t o0 Ln -zi- oo ri r- N Ol N r, 0 00 rl v7 N ri O It O N �t Ln 00 l0 M ri rn N 00 [� C It r" N ri It N 00 r- Ill rf) l0 ri Ln C N N Ln Q 0 rf rf rf LD LD Ln L.6 ZF L.6 Q ri ZF rf co Ln m Ln N 00 't r� 00 00 ri rf) LD Ln N -zl- 00 0 00 r- O rn 61 r- ri ri O 00 ri 00 rl l0 M 5 N Ln N Ll O N Cl Ln Ln 0 �N 0 l0 lzz [-� W �t Ln 00 -C ri N N N rn �t Ill Ill l0 rl 00 00 0 a) M M M rn rn rn rn M rn rn rn M 0. v r1 r1 r1 cn N N N N N N N N N N N N 0 N N N 2 Z 2 Ol Ol Ol O O O O O O O O O O Lfl Lfl Lr) Q 4J +J > U C L L >` C to Q Co 0 z o LL a Q N o 2 a /0 V w 0 M N cz 0 0 0 0 0 0 0 0 0 0 U U U U U U U U U U U U 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Ln Ln Ln Ln 0 0 0 0 0 0 0 0 0 0 0 0 O O O O O O O O O O O O rn rn rn rn rn rn rn rn rn rn rn rn > > > > > > > > > > > > U U U U U U U U U U U U c c c c c c c c 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U U O >, ° �O i f� y2 = �$ O cd bA o O N p a o LP; O V — IS U o y o u U q > �, �° 21 C, 0 zt: y p U U cd U cd > U U U City of Fort Worth, Texas Mayor and Council Communication DATE: 11/09/21 M&C FILE NUMBER: M&C 21-0860 LOG NAME: 23WM RESIDENTIAL COLLECTION 12 YEAR EXTENSION-$478,800,000 SUBJECT (ALL)Approval of a Term Sheet Authorizing the Second Extension and Restatement of City Secretary Contract No. 28358 E-1 with Waste Management of Texas, Inc., for Collection of Residential Garbage, Refuse and Bulky Waste, Recyclables, Certain Commercial Solid Waste,Yard Waste, Construction and Demolition and Large Brush With an Approximate 12 Year Renewal Period to End April 1, 2033 for an Estimated Contract Cost of$478,800,000 RECOMMENDATION: It is recommended that the City Council approve the attached term sheet authorizing the terms and conditions for the Second Extension and Restatement of City Secretary Contract No. 28358 E-1 with Waste Management of Texas, Inc., for collection of residential garbage, refuse and bulky waste, recyclables, certain commercial solid waste, yard waste, construction and demolition and large brush with an approximate 12 year renewal period to end April 1, 2033. DISCUSSION: On November 5, 2002, Mayor and Council Communication(M&C)C-19340, the City Council authorized City Secretary Contract No. 28358 (Contract)for the collection of residential garbage, refuse and small bulky waste, recyclables, certain commercial solid waste, yard waste, construction and demolition and large brush, and large bulky waste with Waste Management of Texas, Inc. (Waste Management),which commenced on April 1, 2003. The initial contract was for a 10 year term with three 10 year renewal options. On January 15, 2013 the City Council authorized City Secretary Contract No. 28358-E1 (First Extension and Restatement)for the collection of residential garbage, refuse and bulky waste, recyclables, certain commercial solid waste, yard waste, construction and demolition and large brush which expires on March 31, 2023 and allows for the remaining two options to renew, each for a 10 year term. In anticipation of the expiration of the current Contract term, City Staff and Waste Management have negotiated in good faith the following terms and conditions as stated in the attached Term Sheet,which Code Compliance management, as well as the City's consultant, Burns&McDonnell, recommends that the City Council approve: • Waste Management shall waive the annual cost adjustment for Fiscal Year 2022. The waiver of the cost adjustment is projected to save the City approximately$18.5 million over the term of the proposed 12 year extension. • Waste Management has agreed to the customer service performance standard for Priority One Collections and Collection Day route completion as shown in the term sheet and agrees to strive towards having less than the individual quarterly goals for all four(4)solid waste services, and to target a one-time 20%reduction of Priority One Collections for Garbage and Recycling Cart collection services and a one- time 10%reduction of Priority One Collections for Yard Waste and Bulky Waste. • The parties have agreed to revise the methodology to reimburse Waste Management for Storm Event Debris. • Effective with the Fiscal Year 2023(i.e.,the October 1, 2022 through September 30, 2023 period)Cost Adjustment, the parties agree to change the current Cost Adjustment indices,their measurement, and their allocation to the CPI-U(Series ID: CUUROOOOSEHG02)Garbage and Trash Collection at 90%and the EIA Natural Gas Texas Commercial(N3020TX3.M)index at 10%, from what is currently in the Contract ,as amended. • The parties agree to change the 12 month index measurement period in determining the annual Cost Adjustment to be April 1 to March 31. • The Liquidated Damages stated in the Contract shall be amended to reflect the agreed upon service performance standard and the current administrative costs to the City for failure to perform by Waste Management. • The Second Extension and Restatement shall be for a period of approximately 12 years and shall expire on April 1, 2033. Waste Management has agreed to make other amendments to the Contract such as: • Performing an upgrade to all Automated Side Load(ASL) residential Garbage and Recycling collection vehicles, including Knight Waste Services residential ASL collection vehicles by installing vehicle cameras and image recognition software, known as the SmartTruckT"' system technology,to help verify that Waste Management's performance of service adheres to the terms of the Contract and to assist the City in its enforcement of its Solid Waste ordinances by May 1, 2022. • Reimbursing the City for the cost of repairing or replacing a garbage or recyclables storage cart due to damage caused by Waste Management. Upon execution of the Term Sheet, the parties shall negotiate in good faith a Second Extension and Restatement of the Contract to incorporate these terms and conditions, as approved by City Council. Upon satisfaction of the City Manager that the Second Extension and Restatement meet the intent of the Term Sheet,the parties shall execute the agreement and the new term shall begin. The estimated cost for these collection services for Fiscal Year 2022 is$39,900,000,which includes waiving the annual cost adjustment. The estimated value of this Contract over the 12 year term is $478,800,000. The estimated contract amount does not constitute a not to exceed limit on the contract, as the unit prices paid to Waste Management are adjusted annually by the cost adjustment, growth of the City, storm events and other variable factors. M/WBE-Waste Management agrees to maintain its initial M/WBE commitment of 25% that it made on the original Contract and extend and maintain the same M/WBE commitment of 25 percent to all prior amendments up to and inclusive of this Second Extension and Restatement. Therefore,Waste Management remains in compliance with the City's M/WBE Ordinance and attests to its commitment by its signature on the Acceptance of Previous M/WBE Commitment form executed by an authorized representative of its company. RENEWAL OPTIONS-This Contract may be renewed for up to one remaining consecutive ten year term at the City's option. This action does not require specific City Council approval provided that the City Council has appropriated sufficient funds to satisfy the City's obligations during the renewal term and provided all terms and conditions remain the same. A Form 1295 is not required because: This contract will be with a publicly-traded business entity or a wholly-owned subsidiary of a publicly-traded business entity:Waste Management FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendation funds are available in the operating budget, as appropriated, in the Solid Waste Fund. Prior to an expenditure being incurred, the Code Compliance Department has the responsibility to validate the availability of funds. Submitted for City Manager's Office by: Valerie Washington 6199 Originating Business Unit Head: Brandon Bennett 6322 Additional Information Contact: David B. Carson 6336 Expedited